Petitioner,

Respondent.

)

)

)

)

)

)

)

)

)

)

)

)

MAR

112005

STATE OF

ILLtNOIS

Pollution CoflttO~

Board

PCB

O5--J~/

NOTICE OF FILING

Division of Legal Counsel

1021 North Grand Avenue East

P.O.

Box 19276

Springfield, Illinois

62794-9276

Ms. Dorothy Gunn, Clerk

Illinois Pollution Control Board

James R. Thompson Center

100 W. Randolph

-

Suite 11-500

Chicago, Illinois

60601

Please

take notice

that

on

March

11,

2005,

the undersigned

caused

to be

filed

with the Clerk of the Illinois

Pollution

Control Board, Petitioner’s Petition for Review

and Appearance, copies of which are herewith served upon you.

Rohm and Haas Company

A. Bruce White

Christopher W. Newcomb

Karaganis, White & Magel, Ltd.

414 North Orleans Street, Suite 810

Chicago, Illinois

60610

(312) 836-1177

By~

4~

One of its Attorneys

BEFORE THE ILLINOIS POLLUTION CONTROL

BOJRIECEWED

CLERK’S OFFICE

---

REC~1VED

BEFORE THE ILLINOIS POLLUTION

CONTROL BOARI~LERKS

OFFICE

MAR

112005

ROHM AND HAAS COMPANY

)

)

STATE OF ILLINOISd

Petitioner,

pollution Controt

Boar

)

V.

)

I)

ILLINOIS ENVIRONMENTAL

)

PCB

PROTECTION AGENCY,

)

FESOP Permit Appeal

)

Respondent.

)

)

)

APPEARANCE

NOW COMES Bruce White and Christopher Newcomb of the law firm of

Karaganis, White

& Magel, Ltd., and hereby enter their appearance on

behalf of

thePetitioner ROHM AND HAAS COMPANY, in the above-referenced matter.

Rohm and Haas Company

By

~

One of its Attorneys

A. Bruce White

Christopher W. Newcomb

Karaganis, White

& Magel, Ltd.

414 North Orleans

Street, Suite

810

Chicago, Illinois

60610

(312) 836-1177

---

RECEIVED

BEFORE THE ILLINOIS POLLUTION CONTROL BOA1~l1ERK’SOF~E

ROHM AND HAAS COMPANY,

)

MAR

112005

)

STATE OF ILL~OIS

Petitioner,

)

Pollution

Contro’ ~3oard

)

V.

ILLINOIS ENVIRONMENTAL

)

PCB 05-

PROTECTION AGENCY,

)

Respondent.

)

)

PETITION FOR REVIEW

NOW

COMES

Petitioner,

Rohm

and

Haas

Company

(Rohm

and

Haas

or

Petitioner),

pursuant

to

Section

40(a)(1)

of the

Illinois

Environmental

Protection

Act

(Act), 415 ILCS § 5/40(a)(1), and 35 Iii. Adm. Code Part 105, by its attorneys, Karaganis,

White

and

Magel,

Ltd.,

and

appeals

the

Illinois

Environmental

Protection

Agency’s

(Illinois

EPA’s)

final

decision

of

the

issuance

of

the

Federally

Enforceable

State

operating Permit

--

Renewal (FESOP Renewal) and the conditions contained therein.

In

support of this Petition, Rohm and Haas states:

1.

Rohm

and

Haas

is

the

owner

and

operator

of

a

polymer

emulsion

manufacturing

plant

located

at

1400

Harvard

Drive,

Kankakee,

Illinois

(the

Plant).

Kankakee County

is designated

as an attainment area for all criteria air pollutants,

and

the

Plant

is

a

minor

source

for

all

pollutants

--

VOM,

HAPs

(both

collectively

and

individual), PM, NOx and CO.

2.

Under

the

Plant’s

previous

FESOP

--

#8906066

issued

by

Illinois

EPA

on

January 10,

2000 and expired on January

10, 2005

--

the Plant’s emission limits were 58

---

tpy

VOM;

14.56

tpy

PM;

8.5

tpy

NOx;

and

7.14

tpy

CO, based

upon

the

continuous

operation

of the Plant

24 hours and

day, seven days a week for the entire

year

(8,760

hrs/yr

operation).

(A

copy

of the

previous

FESOP

is

attached

hereto

as

Exhibit

1.)

Historically, the

Plant

has consistently

emitted

well below

25

tpy

VOM or PM,

well

below 10

tpy

for any individual HAP, and well below 25

tpy

for all HAPs.

3.

On July 9, 2004, Rohm and Haas timely filed an application for renewal of the

Plant’s FESOP.

4.

On February

7, 2005,

the Illinois

EPA issued

the Plant

a

“Federally

Enforceable

State

Operating

Permit

--

Renewal”

No. 89060066

(Renewed

FESOP),

including

several

objectionable revisions

from the previous

FESOP.

A

copy of the Renewed

FESOP

is

attached hereto as Exhibit 2.

5.

Rohm

and

Haas

specifically

objects

to,

and

hereby

appeals,

the

following

conditions contained in the Renewed FESOP

on the following bases:

a.

Conditions

2a,

21,, 19 and

20.

Conditions 2a

(including

all

subsections

i

through iv), 2b,

19 and 20 purport to create enforceable permit conditions

based on the Plant’s participation in and/or meeting specific provisions of

the federal Performance Track Program.

The Performance Track Program

is

a voluntary program

available only to those facilities recognized by the

U.S.

EPA

as top

environmental

performers,

i.e.,

those who

consistently

meet and

exceed regulatory

compliance

requirements

to

attain levels of

environmental

performance

and

management

that

provide

greater

benefits to people, communities

and the environment.

Whether

a facility

2

---

may

participate

in

the

Performance

Track

Program

is

entirely

discretionary to U.S. EPA.

(69 FR 21737,21740 (April 22, 2004).)1

The conditions

added

to the Renewed FESOP are not necessary to

accomplish

the

purposes

of the

Illinois

Environmental

Protection

Act

(Act),

and,

in fact, bear no

relationship

to compliance

with the

Act.

The

Performance

Track Program

is not a

State

program;

is not

legislated

or

required

by the Act or any implementing regulations; nothing in the Act

authorizes

or

requires

adherence

to

any

Performance

Track

Program

requirement;

and

Performance

Track is not

incorporated

by

reference

in

the

State

Implementation

Plan

(SIP).

In

fact, Performance

Track

is

not

even

federally

“enforceable,”

as

the

program

is

voluntary

(i.e.,

a

participant’s nonconformance

to Performance

Track

Program

provisions

does not constitute

a violation of the Clean Air Act

or its

implementing

regulations).

Illinois

EPA

simply

has

no

legal

authority

to

require

participation in, or adherence to any provision of, the federal Performance

Track

Program,

and

therefore

cannot

include

as

conditions

of

a

FESOP

either

the

participation

in,

or

conformity

to,

the

Performance

Track

Program.

As such, none of the conditions

premised even in part

on

the

~ Rohm and Haas notes that

during

the course

of discussions with Illinois

EPA during

the draft permit

comment

period,

Rohm

and

Haas

had

conditionally

agreed

to

accept

the

reference

to

Performance

Track

whereby

Condition

2a

would

state

that

its

issuance

was

based

on

the

Plant’s

continued

participation in

the Performance Track

program.

This

concession was

conditioned

upon the

Illinois

EPA’s

deletion of

all the remaining

references to Performance

Track in the

final FESOP.

The Illinois

EPA chose not to delete the additional

objectionable references/conditions,

so

the

Plant

is appealing

inclusion

of

any

and

all

conditions

that

attempt

to

transform

the

voluntary

Performance

Track

provisions into mandatory permit conditions in the Renewed FESOP.

3

---

Performance

Track program

are necessary to accomplish the purposes

of

the Act.

Moreover,

these conditions

conflict with Section

9.1(a)

of the

Act.2

Performance Track attempts to create a scheme by which

overcomplying

facilities

are

rewarded

with

some

additional

degree

of

flexibility

and

regulatory relief.

The conditions at issue here undermine the stated goals

of the federal Performance Track Program.

For example, by requiring the

Plant to submit a signed certification of the Plant’s continued participation

in the

Performance

Track

system,

and

submit

a

copy

of the

preceding

year’s

Annual

Performance

Report

(Renewed

FESOP Conditions

19

and

20), the

Illinois

EPA

is

creating

duplicative

requirements

and

increasing

the regulatory

burden

on the Plant.

This stands

in stark contrast

to the

stated

goal

of the

Performance

Track

Program

--

to

reduce

regulatory

burdens on facilities that consistently exceed their compliance obligations.

Additionally, the Renewed FESOP conditions create an unworkable

and

unpredictable

set

of

conditions

that

potentially

subject the

Plant to

arbitrary enforcement.

For example, Condition 2a(i) requires “compliance

with

.

.

.

provisions

of the Environmental

Management System.”

The

function of the Environmental Management System

(EMS) is to internally

2

Section

9.1

of

the Illinois

Environmental

Protection

Act, “State

and

federal

cooperation;

regulations;

permit,” states that

“it is the purpose

of

this

Section to avoid

the existence

of duplicative, overlapping

or

conflicting

State

and

federal regulatory systems.”

Conditions 2a (including

all subsections

1 through

iv),

2b,

19

and

20

to

the

FESOP

Renewal

create

a

permit

scheme

imposing

requirements

on

a

Performance

Track facility that are

duplicative, overlapping

and

conflict with the goals

of the federal

Performance Track program.

4

---

assess

process

systems,

identify problem

areas and propose methods

to

further improve those processes (an ongoing system of improvements that

is not required by the Act), even if the processes are in compliance with all

regulatory

requirements.

Under the scheme devised

by

the Illinois

EPA

and

incorporated

into

the

Renewed

FESOP,

if

the

Plant

chose

not

to

pursue

implementing

certain

improvements

identified

by

EMS

--

no

matter what

the reason

--

the Illinois

EPA could allege “noncompliance”

with

Condition

2a(i), thus

creating

a

permit

violation out

of

a

situation

where

the

Plant

was

already

overcomplying.

This

unworkable

scheme

would subject the Plant to arbitrary enforcement of requirements that bear

no relationship whatsoever to accomplishing the purposes of the

Act.

Condition

2b

purports

to

assert

that

in

the

event

the

Plant

terminates

participation

in

the

Performance

Track

Program,

the

Plant

would have to apply for a CAAPP permit.

There is no basis under the Act

for

such

a

result

--

as

stated

before,

nothing

in

the

Act

requires

participation

in

Performance

Track.

Moreover,

there

is

no

rational

relationship

between

participation

in

Performance

Track

and

any

federally

enforceable

emissions limitations that

bears

upon

whether the

facility

meets

CAAPP

permit

thresholds.

As

such,

any

reference

whatsoever to the Plant’s participation

in,

or need to meet any provision

of, the federal

Performance

Track Program

is

unnecessary to accomplish

the purposes of the Act.

5

---

Finally, Rohm and Haas affirms that applicable environmental laws

would not be violated if the previous FESOP permit was renewed without

revision.

As such, conditions

2a (including

subsections

i through

iv), 2b,

19 and 20 must be stricken.

b.

Condition

7a.

Illinois EPA’s condition

7a purports to require the Plant to

preheat the afterburner

combustion

chamber “to the temperature

no

less

than the temperature

at which compliance

was demonstrated

during the

compliance stack test before operation of the process equipment ducted to

the afterburner is begun.”

According to the manufacturer’s recommended

operating

procedures,

and

as was

acceptable over

the

life of the Plant’s

FESOP

permits

since

1994,

required

destruction

efficiency

of

the

afterburner

is

achieved

when

the

temperature

of

the

afterburner

combustion

chamber

is

anywhere

in

the

range

between

1500

and

1600

degrees

F.

(See.

e.g.,

Condition

6a

of Plant’s

previous

FESOP.)

Revised

Condition

7a bears

no

rational relationship

to emission control

efficiency

or

with

enhancing

protection

of human

health

and

the

environment

--

there

is

no

evidence

that

the

destruction

efficiency

requirement

is

not

being

met

while

the

afterburner

operates

anywhere

between

recommended

1500

and

the

1568

degrees

F

at

which

compliance

was

previously

demonstrated.

(Complying

destruction

efficiency

is

99.9.)3

~ Moreover, this revised condition would

require

the Plant to unnecessarily burn additional

natural gas

and generate

additional

emissions

to

meet

the

increased

temperature

requirement,

a

result

that

is

inconsistent with purposes of the Act

—

to reduce emissions.

6

---

As

such,

Condition

7a

of

the

Renewed

FESOP

is

both

unnecessary

to

accomplish the

purposes

of the

Act,

and applicable

environmental

laws

would not be violated if the previous FESOP permit was renewed without

revision.

6.

During the public

comment period, Rohm

and Haas

raised

its objections

to

the conditions that Rohm and Haas now appeals.

On October 27,

2004, the Illinois EPA

issued for public comment a draft FESOP Renewal.

On November

15, 2004, Rohm and

Haas provided its comments on the draft FESOP Renewal, specifically objecting to,

inter

alia,

the conditions now being appealed.

7.

The current appeal

is being timely filed

--

within the 35-day

appeal deadline

period prescribed by 415 ILCS §5/40(a)(1).

WHEREFORE, Rohm and Haas requests

that the Board

conduct

a hearing and

vacate conditions

2a

(including

subsection

1 through

iv),

2b,

7a,

19

and 20,

direct the

Illinois

EPA issue

the Plant

a FESOP permit

equivalent to the Plant’s

previous

FESOP

that

expired on January

10,

2005 without further undue delay, and for such other relief

as the Board

deems appropriate.

Respectfully submitted,

ROHM AND

HAAS COMPANY

One of its attorneys

Bruce White

Christopher Newcomb

Karaganis, White and Magel, Ltd.

414 N. Orleans Street, Suite 810

Chicago, Illinois

60610

(312) 836-1177

7

---

ExHIBIT

I

---

217/782—2113

FEDERALLY ENFORCEABLE STATE OPERATING PERNIT

RENEWAL

PERNITTEE

Robin and Haas Company

Attn:

Craig Rosenow

1400 Harvard Drive

Kankakee, Illinois

60901

A~1ication No.: 89060066

I.D. No.:

091055AEI

A~p1icant’sDesignation: POLYMER

Date Received: July 14,

1999

Sub-ject: R-l

AND

R-4 Process Lines

Date Issued: January 10,

2000 Ex-oiration Date:

January 10,

2005

Location:

1400 Harvard Drive, Kankakee

This permit is hereby granted to the above-designated Permittee to OPERATE

emission unit(s)

and/or air pollution control equipment consisting of a

polymer emulsion manufacturing plant including:

raw material, product and

waste storage tanks, afterburner and flare,

cooling tower, natural gas fired

boilers,

and pneumatic solids transfer system for wastewater treatment

chemicals pursuant to the above-referenced application.

This Permit is

subject to standard conditions attached hereto and the following special

condition(s)

la~

This federally enforceable state operating permit is issued to limit

the

emissions of air pollutants from the source to less than major source

thresholds

(i.e.,

10 tons per year of any single HAP,

25 tons per year

of total MAPs,

and 100 tons per year of VON).

As a result the source is

excluded from the requirement to obtain a Clean Air Act Permit Program

(CAAPP) permit.

The maximum emissions of this source,

as limited by the

conditions

of this permit,

are described in Attachment A.

b.

Prior to issuance,

a draft of this permit has undergone a public notice

and comment period.

c.

This permit supersedes

all operating permits issued for this location.

2.

Emissions of volatile organic material

(VON)

shall not exceed the

following:

VON Emissions

(Ton/Mo)

(Ton/Yr)

Process,

Primarily

Filters

1.8

18.0

Wastewater

Treatment

2.0

20.0

Fugitive

2.0

20.0

Total

5.8

58.0

---

Page 2

Compliance with annual limits shall be determined from a running total

of 12 months of data.

3.

The emissions of Hazardous Air Pollutants

(MAPs)

as listed in Section

112(b)

of the Clean Air Act shall not

equal

or exceed 10 tons per year

of any single

HAP

or 25 tons per year of any combination of such HAPs,

or such lesser quantity as tJSEPA may establish in rule which would

require the Permittee to obtain a CAAPP permit from the Illinois EPA.

As a result of this condition,

this permit is issued based on the

emissions of any HAP from this source not triggering the requirement to

obtain a

CAAPP

permit from the Illinois EPA.

4a.

The following equipment shall be vented to the afterburner through a

vent header,

except as allowed pursuant to Condition 4b.

The

afterburner shall be operated to provide 99.9

destruction efficiency

for VON as previously demonstrated by an emissions test.

Pre-Emulsion Tanks

Reactors

Drop Tanks

Mercaptan Tank

b.

In the event of malfunction or breakdown, maintenance or inspection of

the afterburner,

the emissions shall be ducted to a flare.

The total

time

for ducting to the flare during malfunction and breakdown of the

afterburner shall not exceed 30 days per year.

5a.

Operation in excess of the applicable emission standards during

malfunction and breakdown of both the afterburner and the flare is

allowed.

In this case,

the Permittee will be allowed to bring any batch

started before the malfunction or breakdown to completion.

This

condition supersedes Standard Condition No.

9(a)

as it applies to

malfunction or breakdown.

The Permittee shall maintain the records

required by Standard Condition

9 (b)

-

b.

In the case of a malfunction or breakdown of both the flare and the

afterburner, no new batches shall be started until one of the two

pollution control devices is back online.

c.

The Permittee shall notify the Illinois EPA’s regional office by

telephone as soon as possible during normal working hours upon the

occurrence of excess emissions due to malfunctions,

or breakdowns.

The

Permittee shall comply with all reasonable and safe directives of

the

regional office regarding such malfunctions and breakdowns.

Within five

(5) working days of such occurrence the Permittee shall give a written

follow-up notice providing an explanation of the occurrence,

the length

of time during which operation continued under such conditions, measures

taken by the Permittee to minimize excess emissions and correct

deficiencies,

and when normal operation resumed.

---

Page 3

6a.

The afterburner combustion chamber shall be preheated to the

manufacturer’s recommended temperature but not lower than 1500 degrees

F, before operation of the process equipment ducted to the afterburner

is begun.

b.

The afterburner shall be equipped with a continuous temperature

monitoring device which is operational at all times the afterburner is

in use.

This device shall monitor the afterburner, stack temperature,

and will be maintained in a safe and operational condition whenever

emissions are ducted to the afterburner.

7.

The flare shall be operated to comply with applicable requirements of 40

CFR 60.18(c),

(d)

,

(e)

and

(f)

8.

The raw material storage tanks shall be equipped with vapor balance

lines and conservation vents.

9.

The cooling tower shall not use chromium compounds as a biocide.

l0a.

Emissions of particular matter

(PM),

nitrogen oxides

(NOr)

and carbon

monoxide

(CO)

from the utilities shall not exceed the following.

The

annual limits are based on 8,760 hr/yr of operation.

EMISSIONS

Firing Rate

PM

NO~

CO

Item of Eguipment

(mmBtu/Hr)

(Lb/Hr) (T/Yr)

(Lb/Hr) (T/Yr)

(Lb/Hr) (T/Yr)

Boilers

(2)

19.8

(each)

0.15

0.65

1.94

8.50

1.63

7.14

Cooling Towera

3.2

13.81

---

----

—

Pneumatic Transfer

----

0.1

0.1

a

Based on 6000 gal/mm

flow rate and 0.1

drift

b.

Cooling water throughout

shall not exceed 6000 gal/mm.

11.

The Permittee shall maintain records of excess emissions during

malfunctions

and

breakdowns.

As

a

minimum,

these

records

shall

include:

a.

Date

and

duration

of

malfunction

or

breakdown;

b.

A

full

and

detailed

explanation

of

the

cause

for

such

emissions;

c.

The

contaminants

emitted

and

an

estimate

of

the

quantity

of

emissions;

d.

The

measures

used

to

reduce

the

quantity

of

emissions

and

the

duration

of

the

occurrence;

and

Page 4

---

e.

The steps taken to prevent similar malfunctions or breakdowns or

reduce their frequency and severity.

l2a.

In addition,

the Permittee shall maintain monthly records of the

following items:

i.

The number of batches produced on all lines;

ii.

Emissions

of

VON and HAPs including emission factors used in

calculations and any methods used to determine those emission

factors

(ton/month and ton/year)

b.

The Permittee shall calculate VOC and HAP emissions to determine

compliance with Condition

3 using

the following methods:

The total process emissions are calculated by summing the individual

process equipment emissions each month and summing these emissions with

the previous 11 months.

The individual equipment emission rates are

calculated by multiplying the actual total number of batches processed

for PVA times

the specific emission factor for that process.

Emissions

discharging to

the afterburner will use a destruction efficiency of

99.9.

The emissions factors used are to be based on standard

engineering calculations, mass balance or actual measured values.

Basis

for the emissions factors will be kept as part of the ongoing records as

required in Condition 13a.

Fugitive emissions from leaks

from process components are to be

calculated based on the latest available monitoring data where

available.

In the absence of monitoring data standard SOCMI

factors are

to be applied to the total component counts for that time period.

Fugitive emissions from wastewater treatment are to be calculated based

on a per batch emissions factor.

Basis for the emissions factors will

be kept as part of the ongoing records as required in Condition l2a.

Annual emissions are to be calculated monthly by summing the current

months

emission with the previous eleven months’ emissions.

Emissions from storage tanks will be calculated using the U.S.

EPA Tanks

program and the associated protocols.

13.

All records and logs required by this permit shall be retained at a

readily accessible location at the source for at least three years from

the date of entry and shall be made available for inspection and copying

by the Illinois EPA or USEPA upon request.

Any records retained in an

electronic

format

(‘e.g., computer)

shall be capable of being retrieved

and printed on paper during normal source office hours

so as to be able

to respond to an Illinois EPA or USEPA request for records during the

course of a source inspection.

Page 5

---

14.

If there is an exceedance of the requirements of this permit as

determined by the records required by this permit,

the Permittee shall

submit a report to the Illinois EPA’s Compliance Section in Springfield,

Illinois within 30 days after the exceedance.

The report shall include

the emissions released in accordance with the recordkeeping

requirements,

a copy of therelevant records,

and a description of the

exceedance or violation and efforts to reduce emissions and future

occurrences.

15.

Two

(2)

copies of required reports and notifications concerning

equipment operation or repairs,

performance testing or a continuous

monitoring system shall be sent

to:

Illinois Environmental Protection Agency

Division of Air Pollution Control

Compliance Section

(#40)

P.O. Box 19276

Springfield, Illinois 62794-9276

and one

(1)

copy shall be sent to the Illinois EPA’s regional

office at

the following address unless otherwise indicated:

Illinois Environmental

Protection Agency

Division of Air Pollution Control

Eisenhower

Tower

1701 South First Avenue

Maywood,

Illinois

60153

16.

The Permittee shall

submit the following additional information with the

Annual

Emissions

Report,

due

May

1st

of

each

year:

A report of the total days the afterburner was not operating and

emissions were ducted to the flare.

It should be noted that this permit has been revised to show the removal

of a

carbon adsorber on the vent from the reactor area.

This

is because the

Permittee no longer uses the raw material

(1,

3 butadiene)

that the carbon

adsorber was originally installed to control.

This permit is based on the

removal of this control not causing an increase in emissions of VON and HAP5

above the currently permitted levels.

---

Page 6

If you have any questions on this, please call Nathan Frank at 217/782-2113.

Donald E. Sutton,

P.E.

Manager, Permit Section

Division of Air Pollution Control

DES:NAF:psj

cc:

Illinois EPA,

FOS Region

1

Illinois

EPA,

Compliance

Section

Lotus Notes

L

---

Attachment A

-

Emission Summary

This attachment provides a

summary

of the maximum emissions from Polymer

Emulsion Manufacturing Plant operating in compliance with the requirements of

this federally enforceable permit.

In preparing this

summary,

the Illinois

E~Aused the annual operating scenario which results in maximum emissions from

such a plant.

The resulting maximum emissions are well below the levels,

e.g.,

100 tons per year of VON,

25 tons per year of total MAPs,

and 10 tons

per year of any single

HAP,

at which this source would be considered a major

source for purposes of the Clean Air Act Permit Program.

Actual emissions

from this source will be less than predicted in this summary to the extent

that less material is handled, and control measures are more effective than

required

in

this

permit.

1.

Emissions of volatile organic material

(VON)

shall not exceed the

following:

VOM Emissions

(Ton/Mo)

(Ton/Yr)

Process,

Primarily Filters

1.8

18.0

Wastewater Treatment

2.0

20.0

Fugitive

~

20.0

Total

5.8

58.0

Compliance with annual limits

shall be determined from a running total of

12

months

of

data.

2.

The emissions of Hazardous Air Pollutants

(HAP5) as listed in Section

112(b)

of

the

Clean

Air

Act

shall

not

equal

or

exceed

10

tons

per

year

of

any single

HAP

or 25 tons per year of any combination of such MAPs,

or

such lesser quantity

as USEPA may establish in rule which would require

the Permittee to obtain a

CAAPP

permit from the Illinois EPA.

As a

result

of

this

condition,

this

permit

is

issued

based

on

the

emissions

of

any

HAP

from this source not triggering the requirement to obtain a

CAAPP

permit from the Illinois EPA.

3a.

Emissions of particular matter

(PM),

nitrogen oxides

(NO,.)

and carbon

monoxide

(CO)

from the utilities shall not exceed the following.

The

annual limits are based on 8,760 hr/yr of operation.

EMISSIONS

Firing

Rate

PM

NO,.

CO

Item

of

Equipment

(mmBtu/Hr)

(Lb/Hr)

(T/Yr)

(Lb/Hr)

(T/Yr)

(Lb/Hr)

(T/Yr)

Boilers

(2)

19.8

(each)

0.15

0.65

1.94

8.50

1.63

7.14

Cooling Towera

3.2

13.81

Pneumatic Transfer

----

0.1

0.1

a

Based on 6000 gal/mm

flow rate and 0.1

drift

b.

Cooling water throughout

shall not exceed 6000 gal/mm.

NAF

:p5

j

---

EXHIBIT

2

---

ILLINOIS

ENVIRONMENTAL

PROTECTION

AGENCY

P.O. Box 19506,

SPRINGFIELD,

kLINOIS

62794-9506

RENEE

CIPRIANO,

DIRECTOR

217/782-2113

FEDERALLY

ENFORCEABLE

STATE

OPERATING

PERMIT

--

RENEWAL

PERMITTEE

Rohm

and

Haas

Company

F ES

~‘

P

Attfl:

Craig

Rosenow

1400

Harvard

Drive

Kankakee,

Illinois

60901

App~.ication

No.

:

89060066

I.D.

No.

:

091055AE1

Applicant’s

Designation:

POLYMER

Date

Received:

August

19,

2004

Subject:

Polymer

Production

Plant

Date

Issued:

February

7,

2005

Expiration

Date:

February

7,

2010

Location:

1400

Harvard

Drive;

Kankakee

This

permit

is

hereby

granted

to

the

above-designated

Permittee

to

OPERATE

emission

unit(s)

and/or

air

pollution

control

equipment

consisting

of

a

polymer

emulsion manufacturing plant including:

process tanks and reactors, product and

waste storage tanks

all controlled by afterburner and flare

(stand-by), cooling

tower, natural gas fired boilers,

and wastewater treatment plant with pneumatic

solid chemicals transfer system pursuant to the above-referenced application.

This Permit is subject to standard conditions attached hereto and the following

special condition(s):

la.

This federally enforceable state operating permit is issued to limit

the

emissions

of

air

pollutants

from

the

source

to

less

than

major

source

thresholds

(i.e.,

10

tons

per

year

of

any

single

HAP,

25

tons

per

year

of

total

HAPs,

and 100 tons per year of VOM).

As a result the

source is excluded from the requirement to obtain a Clean Air Act

Permit

Program

(CAAPP)

permit.

The maximum emissions of this source,

as limited by the conditions of this permit, are described in

Attachment

A.

b.

Prior to issuance,

a draft. of this permit has undergone a public notice

and comment period.

c.

This permit supersedes

all operating permits issued for this location.

2a.

This permit is issued based upon Rohm and Haas Company prior and

continued participation in USEPA Performance Track Program and

compliance with the following:

i.

Provisions

of

Environmental

Management

System;

ii.

All applicable federal and the state air pollution environmental

regulations;

iii.

Annual

compliance self-audit results submitted to the USEPA;

iv.

Annual

Performance

Report

is

submitted

to

the

USEPA.

ROD

R.

BLAGOJEVICH,

GOVERNOR

PRINTED ON

RECYCLED

PAPER

---

Page 2

b.

Upon termination of participation in the Performance Track Program the

Permittee shall apply

for a revision of this permit to establish

federal enforceable production limits or submit an application for

Clean Air Act Permit Program (CAAPP) permit.

3.

Emissions

of volatile organic material

(VOM)

shall not exceed the

following:

VON Emissions

(Tons/Month)

(Tons/Year)

Process, Primarily Filters

1.8

18.0

Wastewater Treatment

2.0

20.0

Fugitive

2.0

20.0

Total

5.8

58.0

Compliance with annual limits shall be determined from a running total

of 12 months of data.

4.

The emissions of Hazardous Air Pollutants

(MAPs)

as listed in Section

112 (b)

of the Clean Air Act shall not equal or exceed 10 tons ~ër year

of any single MAP or 25 tons per year of any combination of such HAPs,

or such lesser quantity as USEPA may establish in rule which would

require the Permittee to obtain

a

CAAPP

permit from the Illinois

EPA.

As

a result of this condition,

this permit is issued based on the

emissions of any

MAP from this source not triggering the requirement to

obtain a

CAAPP

permit from the Illinois EPA.

5a.

The following equipment

shall be vented to the afterburner through a

vent header, except as allowed pursuant to Condition 5b.

The

afterburner shall be operated to provide

99.9

destruction efficiency

for VOM as previously demonstrated by an emissions

test.

Pre-Emulsion Tanks

Reactors

Drop

Tanks

Mercaptan Tank

b.

In the event of malfunction

or breakdown,

maintenance or inspection of

the afterburner,

the emissions shall be ducted to a flare.

The total

time for ducting to the flare during malfunction and breakdown of the

afterburner shall not exceed 30 days per year.

Ga.

Operation in excess of the applicable emission standards during

malfunction and breakdown of both the afterburner and the flare is

allowed.

In this case,

the Permittee will be allowed to bring any

batch started before the malfunction or breakdown to completion.

This

condition supersedes Standard Condition No.

9(a) as it applies to

malfunction or breakdown.

The permittee shall maintain the records

required by Standard Condition 9 (b).

---

Page 3

b.

In the case of

a malfunction or breakdown

of both the flare and the

afterburner,

no new batches shall be started until one

of the two

pollution control devices is back online.

c.

The Permittee shall notify the Illinois EPATs regional office by

telephone

as soon as possible during normal working hours upon the

occurrence of excess emissions due to malfunctions,

or breakdowns.

The

Permittee shall comply with all reasonable

and safe directives of the

regional office regarding such malfunctions and breakdowns.

Within

five

(5) working days of such occurrence

the Permittee shall give a

written follow-up notice providing an explanation of the occurrence,

the length

of time during which operation continued under such

conditions,

measures taken by the Permittee to minimize excess

emissions and correct deficiencies,

and

when normal operation resumed.

7a.

The afterburner combustion chamber shall be preheated to the

temperature no less than the temperature

at which compliance was

demonstrated during the compliance stack test before operation of the

process equipment ducted to the afterburner is begun.

b.

The afterburners shall be equipped with a continuous temperatu~è

monitoring device which is installed,

calibrated, maintained,

and

operated according to vendor’s specification at

all times that the

afterburner is in use.

This device shall

monitor the afterburner

combustion chamber temperature.

8.

The flare shall be operated to comply with applicable requirements of

40 CFR 60.18(c),

(d),

(e)

and

(f)

and operational conditions specified

in manufacturer’s specification.

9.

The raw material storage tanks

shall be equipped with vapor balance

lines and conservation vents.

10.

The cooling tower shall not use chromium compounds as

a biocide.

lla.

Emissions of particular matter

(PM)

from the following equipment shall

not exceed the following.

The annual limits

are based on 8,760 hr/yr

of operation.

PM Emissions

(Lbs/Hour)

(Tons/Year)

Cooling Towera

3.2

13.81

Pneumatic Transfer

0.1

0.1

a

Based on 6,000 gal/mm

flow rate and

0.1

drift

b.

Cooling water throughout shall not exceed 6,000 gal/mm.

l2a.

Emissions and natural gas consumption of the boilers,

afterburner and

flare shall not exceed the following limits:

---

Page 4

Emission

Factor

Emissions

Material

(mmscf/Hr)

(mmscf/Yr)

Pollutant

(Lb/mmscf)

(Lb/Hr)

(Tons/Yr)

Natural

0.04

347

NO,.

100

4.0

17.4

Gas

CO

84

3.4

14.6

PM

7.6

0.3

1.3

VON

5.5

0.3

1.0

These limits define the potential emissions of NO~,CO,

PM,

and VOM and

are based on maximum fuel usage

and standard emission factors.

Compliance with annual limits shall be determined from

a running total

of

12 months

of data.

b.

Natural gas shall be the only fuel used in all fuel combustion emission

sources.

Use of any other fuel other than naturalgas requires a

permit revision.

13.

The Permittee shall maintainrecords

of excess emissions during

malfunctions and breakdowns.

As

a minimum,

these records shall

include:

-‘P.

a.

Date and duration of malfunction or breakdown;

b..

A full and detailed explanation of the cause for such emissions;

c.

The contaminants emitted and an estimate of the quantity of

emissions;

d.

The measures used to reduce the quantity of emissions and the

duration of the occurrence;

and

e.

The steps taken to prevent similar malfunctions or breakdowns or

reduce their frequency and severity.

14a.

The Permittee shall maintain monthly records of the following items:

i.

The number of batches produced on all lines;

ii.

Emissions of VOM and individual MAPs with supporting calculations

including emission factors used in calculations and any methods

used to determine those emission factors

(tons/month and

tons/year);

and

iii.

Amount of natural gas consumed in the boilers,

afterburner and

flare

(mmscf/month and

mmscf/year)

b.

The Permittee shall calculate VOC and HAP emissions

to determine

compliance with Conditions

3 and

4 using

the following methods:

i.

The total process emissions are calculated by summing the

individual process equipment emissions each month and summing

---

Page

5

these emissions with the previous

11 months.

The individual

equipment emission rates are calculated by multiplying the actual

total number of batches processed for PVA,

acrylics,

and styrene.

based polymers times

the specific emission factor for that

process.

Emissions discharging to the afterburner will use

a

destruction efficiency of 99.9.

The emissions factors used are

to be based on standard engineering calculations, mass balance or

actual measured values.

Basis for the emissions factors will be

kept as part of the ongoing records as required in Condition 14a.

ii.

Fugitive emissions from leaks from process components are to be

calculated based on the latest available monitoring data where

available.

In the absence of monitoring data standard SOOMI

factors are

to be applied to the total component counts for that

time period.

iii.

Fugitive emissions from wastewater treatment are to be calculated

based on a per batch emissions factor.

Basis for the emissions

factors will be kept as part of the ongoing records as required

in Condition 14a.

Annual emissions are to be calculated monthly

by summing the current month’s emission with the previous’eleven

months’ emissions.

iv.

Emissions from the storage tanks

shall be calculated. using

equations given by

AP-42

(5th edition,

Section 7.1)

or using the

USEPA distributed TANKS program.

15.

All records and logs required by this permit shall~be retained at a

readily accessible location at

the source for at least three years from

the date of entry and shall be made available for inspection and

copying by the

Illinois EPA or USEPA upon request.

Any

records

retained in an electronic format

(e.g.,

computer)

shall be capable of

being retrieved and printed on paper during normal source office hours

so as to be able to respond to an Illinois EPA or USEPA request for

records during the course

of a source inspection.

16.

If there

is an exceedance of the requirements of this permit as

determined by the records required by this permit,

the Permittee shall

submit a report to the Illinois EPA’s Compliance Section in

Springfield,

Illinois within 30 days after the exceedance.

The report

shall include the emissions released in accordance with the

recordkeeping requirements,

a copy of the relevant records,

and a

description of the exceedance or violation and efforts to reduce

emissions and future occurrences.

17a.

Within 90 days of a written request from the Illinois

EPA the emission

• of VOM and individual MAPs in

the effluent stream of afterburner shall

be measured by an approved testing service.

These tests shall be

conducted in accordance with 35

Ill.

Adm.

Code 215.102.

---

Page

6

b.

Prior to conducting such a test,

the Illinois EPA should be consulted

to verify that the intended test method is approved and is appropriate

for use in testing this equipment.

c.

The specific

conditions under which testing will be performed,

including a discussion of why these conditions will be representative

of maximum emissions and the means by which the operating parameters

for the emission unit

and any control equipment will be determined.

d.

The test shall be designed to measure both the

destruction efficiency

across

the afterburner and the overall control efficiency provided by

the combination of the capture system and afterburner

(the emission

units hard-piped to the afterburner may be assumed having 100

capture

efficiency)

18.

Two

(2)

copies of required reports and notifications concerning

equipment operation or repairs,

performance testing or a continuous

monitoring system shall be sent

to:

Illinois Environmental Protection Agency

Division of Air Pollution Control

Compliance Sectioi~(#40)

P.O.

Box

19276

•

Springfield,

Illinois

62794-9276

one

(1)

copy shall be sent to the Illinois EPA’s regional office at the

following address unless otherwise indicated:

Illinois Environmental Protection Agency

Division of Air Pollution Control

9511 West Harrison

Des Plaines,

Illinois

60016

and

one

(1)

copy of any documents relating to emissions performance

testing shall be sent to

the following address unless otherwise

-

indicated:

Illinois Environmental Protection Agency

Division of Air Pollution Control

Source Monitoring Unit

9511 West Harrison

Des Plaines,

Illinois

60016

19.

The Permittee shall submit the following additional information with

the Annual Emissions Report, due May 1st of each year:

A signed certification of

the source’s continued participation

in the

USEPA

Performance Track Program.

20.

The Permittee shall submit a copy of the preceding year’s Annual

Performance report for the USEPA Performance Track Program to the

---

Page 7

Illinois EPA Compliance Section within ten days after due date of

submittal to the USEPA.

If you

have any questions on this, please call Valeriy Brodsky at

217/782-2113.

Donald E.

Sutton,

P.E.

Manager,

Permit Section

Division of Air Pollution Control

DES:JB:psJ/~/’1~5

‘

COpy

cc:

Illinois EPA, FOS Region

1

On1g1flOlSigfle~by

Lotus Notes

.

DOflQId

E, Suffo~,

P.E~

---

Attachment A

-

Emission Summary

This attachment provides a summary of the maximum emissions from Polymer

Emulsion Manufacturing Plant operating in compliance with the requirements

of

this federally enforceable permit.

In preparing this summary,

the Illinois

EPA used the annual operating scenario which results in maximum emissions

from such a plant.

The resulting maximum emissions are below the levels,

e.g..,

100 tons per year of VOM,

25 tons per year of total MAPs,

and

10 tons

per year’ of any single

HAP,

at which this source would be considered

a major

source for purposes of the Clean Air Act Permit Program.

Actual emissions

from t~iissource will be less than predicted in this summary to the extent

that less material

is handled,

and control measures are more effective than

required in this permit.

•

E M I S

S

I 0 N

S

(Tons/Year)

Process

VOM

NO,.

CO

PM

Single HAP

Total

HAP

Production

l8~O

Wastewater Treatment

20.0

Fugitive

20.0

Cooling Tower

.

13.8

Chemicals Transfer

0.1

Boilers, Afterburner,

Flare

1.0

17.4

14.6

1.3

Total

59.0

17.4

14.6

15.2

10

25

VJB

:psj

---

STATE OF ILLINOIS

ENVIRONMENTAL PROTECTION AGENCY

DIVISION OF AIR POLLUTION CONTROL

P.O.

BOX 19506

SPRINGFIELD,

ILLINOIS

62794—95O~6

May,

1993

The

Illinois

Environmental

Protection

Act

(Illinois

Revised

Statutes,

Chapter

111—1/2,

Section

1039)

grants the Environmental

Protection Agency authority to impose conditions

on permits which it

issues.

The following conditions are applicable unless superseded by special permit conditions(s).

1.

The

issuance

of this permit

does

not

release

the

Permittee

from

compliance

with

state

and

federal

regulations which

are part

of the Illinois State Implementation Plan,

as

well

as

with

other applicable statues and regulations of the United

States or the State of Illinois

or with

applicable local laws,

ordinances and regulations.

2.

The

Illinois

EPA

has

issued

this

permit

based upon the

information

submitted by the

Perrnittee

in

the permit

application.

Any misinformation,

false

statement or misrepresentation

in the

application shall be ground for revocation under 35

Ill.

Adin.

Code

201.166.

3.

a.

The Permittee shall not

authorize,

cause,

direct or

allow any modificat~ion, as defined in

35

Ill.

Adm.

Code

201.102,

of

equipment,

operations

or

practices

which

are

reflected

in

the

permit

application

as

submitted

unless

a new

application

or

request

for

revision of

the

existing permit

is

filed with

the Illinois EPA and unless

a new permit or revision of

the existing permit(s)

is issued for such ir~odification.

b.

This permit only covers emission sources and control equipment while physically present at

the

indicated plant

location(s).

Unless

the

permit

specifically provides

for

equipment

relocation, this permit

is void for an item of equipment on the day it is removed from the

permitted location(s)

or if

all

equipment

is removed,

notwithstanding. the expiration date

specified on the permit.

4.

The

Permittee

shall

allow

any

duly

authorized

agent

of

the

Illinois

EPA,

upon

the

presentation

of credentials,

at reasonable times:

a.

To entdr

the Permittee’s property where actual

or potential effluent,

emission or noise

sources are locatedor where any activity is to be conducted pursuant to this permit;

b.

To

hare

access

to

arid

to

copy

any

records

required

to

be

kept

under

the

terms

and

conditions of this permit;

c.

Th inspect,

including during any hours

of

operation of equipment constructed or operated

under

this permit,

such

equipment

and any

equipment

required to be

kept,

used,

operated,

calibrated and maintained under this permit;

d.

To obtain and remove samples of any discharge or emission

of pollutants;

and

e.

To enter and utilize

any

photographic,

recording,

testing,

monitoring

or

other

equipment

for the purpose

of preserving,

testing,

monitoring

or recording any activity,

discharge

or

emission authorized by this permit.

5.

The issuance of this permit:

a.

Shall not be considered as

in any manner affecting the title

of the premises

upon which

the permitted facilities are located;

IL 532—0224

090—005

APC 261 Rev.

March, 2001

STANDARD

CONDITIONS

FOR

OPERATING’ PERMITS

PRINTED ON RECYCLED PAPER

---

b.

Does not release the Permittee from any liability for damage to person or property caused

by or resulting from the construction, maintenance,

or operation of the facilities;

c.

Does not take into consideration or attest to the structural

stability of any unit or part

of the project; and

d.

In

no

manner

implies

or

suggests

that

the

Illinois

EPA

(or

its

officers,

agents,

or

employees)

assumes

any

liability,

directly

or

indirectly,

for

any

loss

due

to damage,

installation, maintenance,

or operation of the proposed equipment or facility.

6.

The facilities

covered by this permit

shall be operated

in such

a manner that the disposal of

air contaminants

collected by the equipment shall not

cause

a violation of

the Environmental

Protection Act or regulations promulgated thereunder.

7.

The Permittee shall maintain all equipment covered under this permit in such a manner that the

performance of such equipment shall not

cause a violation of the Environmental Protection

Act

or regulations promulgated thereuner.

8.

The

Permittee

shall

maintain

a

maintenance

record’ on

the

premises

for

each

item

of

air

pollution

control

equipment.

This

records

shall

be

made

available

to

any

agent

of

the

Environmental Protection Agency at any time during normal working hours and/or operating houra.

As

a minimum,

this

record

shall

show

the

dates

of

performance

and nature

of preventative

maintenance activities.

9.

No person shall cause or allow continued operation during malfunction,

breakdown or startup of

any emission source or related air pollution control equipment if such operation would

cause

a

violation

of

an

applicable

emission

standard

or

permit

limitation.

Should

a

malfunction,

breakdown or startup occur which results in emissions in excess

of any applicable

standard or

permit limitation, the Permittee shall:

a.

Immediately

report

the

incident to

the

Illinois

EPA’s

Regional

Field

Operations

Section

Office

by

telephone,

telegraph,

or

other

method

as

constitutes

the

fastest

available

alternative,

and

shall

comply with

all

reasonable

directives

of

the

Illinois

EPA

with

respect to the incident;

b.

Maintain the following records for a period of no less than two

(2)

years:

i.

Date and duration of malfunction, breakdown,

or startup,

ii.

Full and detailed explanation of the cause,

iii. Contaminants emitted and an estimate of quantity of emissions,

iv.

Measures

taken to minimize the amount of emissions during the malfunction, breakdown

or startup,

and

v.

Measures taken to reduce future occurrences and frequency of incidents.

10.

If

the permit application

contains

a

compliance program and project completion

schedule,

the

.Permittee

shall

submit

a project

completion status

report within thirty

(30)

days of any date

specified in the compliance program and project completion schedule or at six month intervals,

whichever is more frequent.

11.

The Permittee shall submit an Annual Emission Report as required by 35 Ill.

Adm.

Code 201.302

and

35 Ill.

Adm.

Code

Part

254.

2815C

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CERTIFICATE OF SERVICE

I, the undersigned,

certify that I have

caused the foregoing Petition for Review

and Appearance

to be

served in the manner indicated upon each person listed

below,

on this 11th day of March, 2005.

Division of Legal Counsel

Illinois Environmental Protection Agency

1021 North Grand Avenue

East

P.O. Box 19276

Springfield, Illinois

62794-9276

BY MESSENGER:

Ms. Dorothy Gunn, Clerk

Illinois Pollution Control Board

James R. Thompson Center

100 W. Randolph

-

Suite 11-500

Chicago, Illinois.

60601

Christopher W. Newcomb

Attorney for Petitioner,

Rohm and Haas

Company