BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
    IN THE MATTER OF:
    )
    ABBOTT LABORATORIES' PROPOSED )
    SITE-SPECIFIC AMENDMENT TO
    )
    APPLICABILITY SECTION OF ORGANIC )
    MATERIAL EMISSION STANDARDS AND)
    LIMITATIONS FOR THE CHICAGO AREA;)
    SUBPART T: PHARMACEUTICAL
    )
    MANUFACTURING (35 ILL. ADM. CODE )
    218.480(b))
    )
    R08-8
    (Rulemaking -Air)
    N
    OTICE
    OF FILING
    TO: M r. John Therriault
    Assistant Clerk of the Board
    Illinois Pollution Control Board
    100 West Randolph Street
    Suite 11-500
    Chicago, Illinois 60601
    (VIA ELECTRONIC MAIL)
    Kathleen M. Crowley
    Hearing Officer
    Illinois Pollution Control Board
    100 West Randolph Street
    Suite 11-500
    Chicago, Illinois 60601
    (VIA U.S. MAIL)
    (PERSONS ON
    ATTACHED SERVICE LIST)
    P LEASE TAKE NOTICE that I have today filed with the Office of the Clerk of
    the Illinois Pollution Control Board ENTRY OF APPEARANCE OF LAUREN
    C.
    LURKINS, PREFILED TESTIMONY OF DIANE BENO IN SUPPORT OF
    PROPOSED SITE-SPECIFIC
    AMENDMENT, and PREFILED TESTIMONY OF
    ROBERT C. WELLS
    IN SUPPORT OF PROPOSED SITE-SPECIFIC
    AMENDMENT, copies of which are herewith served upon you.
    Respectfully submitted,
    Dated: February 22, 2008
    K atherine D. Hodge
    Lauren C. Lurkins
    HODGE DWYER ZEMAN
    3150 Roland Avenue
    P ost Office Box 5776
    Springfield, Illinois 62705-5776
    (217) 523-4900
    By: /s/ Katherine D. Hodue
    Katherine D. Hodge
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    CERTIFICATE
    OF SERVICE
    I, Katherine D. Hodge, the undersigned, hereby certify that I have served the
    ENTRY OF APPEARANCE
    OF LAUREN C. LURKINS, PREFILED TESTIMONY OF
    DIANE
    BENO IN SUPPORT OF PROPOSED SITE-SPECIFIC AMENDMENT, and
    PREFILED TESTIMONY OF ROBERT
    C. WELLS IN SUPPORT OF PROPOSED
    SITE-SPECIFIC AMENDMENT upon:
    M r. John Therriault
    Assistant Clerk of the Board
    Illinois Pollution Control Board
    100 West Randolph Street
    Suite 11-500
    Chicago, Illinois 60601
    v ia electronic mail on February 22, 2008; and upon:
    Kathleen M. Crowley
    Hearing Officer
    Illinois Pollution Control Board
    James R. Thompson Center
    100 West Randolph Street, Suite 11-500
    Chicago,
    Illinois
    60601
    Matthew J. Dunn, Chief
    Environmental Bureau North
    Office of the Attorney General
    6 9 West Washington Street, Suite 1800
    Chicago, Illinois 60602
    Charles E. Matoesian, Esq.
    Assistant Counsel
    Division of Legal Counsel
    Illinois Environmental Protection Agency
    1021 North
    Grand
    Avenue East
    Post Office Box 19276
    Springfield, Illinois 62794-9276
    Office of Legal Services
    Illinois Department
    of Natural Resources
    One Natural Resources
    Way
    Springfield, Illinois 62702-1271
    b y depositing said document in the United States Mail, postage prepaid, in Springfield,
    Illinois on February 22, 2008.
    /s/ Katherine D. Hodee
    Katherine D. Hodge
    A BOT:003/FilingsMOF, Profiled Testimony
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
    IN THE MATTER OF:
    )
    ABBOTT LABORATORIES' PROPOSED )
    R08-8
    SITE-SPECIFIC AMENDMENT TO
    ) (Rulemaking
    -Air)
    APPLICABILITY SECTION
    OF ORGANIC )
    MATERIAL EMISSION
    STANDARDS
    AND)
    LIMITATIONS
    FOR THE CHICAGO AREA;)
    SUBPART
    T: PHARMACEUTICAL
    )
    MANUFACTURING (35 ILL. ADM. CODE )
    218.480(6))
    )
    ENTRY OF APPEARANCE OF LAUREN C. LURKINS
    NOW COMES Lauren C. Lurkins, of the law firm HODGE DWYER ZEMAN,
    and hereby enters her appearance in this matter on behalf
    of Abbott Laboratories.
    Respectfully submitted,
    By:
    D ated: February 22, 2008
    Lauren C. Lurkins
    HODGEDWYERZEMAN
    3150
    Roland Avenue
    Post Office Box 5776
    Springfield, Illinois
    62705-5776
    (217) 523-4900
    A BOTa03/Fil/EOA-LCL
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    BEFORE THE
    ILLINOIS POLLUTION CONTROL BOARD
    IN THE MATTER OF:
    )
    ABBOTT LABORATORIES' PROPOSED )
    R08-8
    SITE-SPECIFIC AMENDMENT
    TO
    ) (Rulemaking-Air)
    APPLICABILITY SECTION OF
    ORGANIC )
    MATERIAL EMISSION STANDARDS
    AND)
    LIMITATIONS FOR THE CHICAGO AREA;)
    SUBPART T: PHARMACEUTICAL
    )
    MANUFACTURING (35 ILL. ADM. CODE )
    218.480(6))
    )
    PRE-FILED TESTIMONY OF DIANE
    BEND,
    IN SUPPORT OF PROPOSED SITE-SPECIFIC
    AMENDMENT
    N OW
    COMES ABBOTT LABORATORIES, by and through its attorneys,
    HODGE DWYER ZEMAN, and pursuant to 35 III. Admin. Code §
    102.424 and the
    Hearing
    Officer Order, dated January 31, 2008, submits the following Pre-Filed
    Testimony of Diane Beno for presentation
    at the March 7, 2008 hearing scheduled in the
    above-referenced matter:
    TESTIMONY OF DIANE BENO
    My name is Diane Beno. I am the plant manager of the portion
    of the Abbott
    Laboratories facility internally known as Building APl6. The operations contained in
    Building AP 16 produce intermediate and final pharmaceutical product
    formulations,
    including liquids, tablets and capsules packaged in bottles and blister formats. The
    general
    process flow involves: receipt of raw materials; weighing of ingredients; massing
    and granulation of ingredients; compressing granulated product into tablets; coating
    tablets or particles; printing symbols
    onto tablets; and packaging finished products for
    distribution.
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    Over the
    course of a year, we produce many different products in Building AP 16.
    For example, we produce pharmaceuticals that treat diseases in the field of neuroscience
    such as epilepsy and bipolar disorder, we make antiviral products for the treatment of
    AIDS, we manufacture antibiotics to fight infection, we package products that help
    patients achieve healthy cholesterol levels, and products that improve the lives of people
    with rheumatoid arthritis, psoriasis and Crohn's disease.
    We manufacture our products using batch production processes. In batch
    production, all of the processing equipment in a process
    train, including
    the dryers,
    manufactures one product
    at a time. Each batch is completed before the manufacture of
    the next batch begins. In a typical process, the active and inactive ingredients
    are
    combined with a liquid in a process
    called "massing." This massing process forms
    uniform granules.
    The wet granules are dried in tunnel dryers or fluid bed dryers and
    then further processed into tablets or capsules.
    The
    massing fluid, which is typically either water or ethanol, is evaporated from
    the solid material in the drying step. If an organic solvent is
    volatilized
    from the dryer,
    it
    is emitted to the ambient air as
    volatile organic material ("VOM") or volatile organic
    compounds ("VOCs"). The quantity of VOM emissions will
    vary
    for different
    products,
    and is calculated from the quantity of VOM added
    to the mixture and loss factors defined
    for the dryers and specified
    in
    the
    Clean Air Act Permitting Program ("CAAPP") Permit
    for the facility. It is also important to note
    that the organic solvent currently used in
    granulation and dried
    from the granulated mixtures at Building AP16 is ethanol. Ethanol
    is a VOM, but is not considered a hazardous air pollutant ("HAP"),
    The proposed site-
    specific amendment will have no
    effect on HAP emissions.
    2
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    Abbott's proposed site-specific amendment for
    Building
    AP
    16 covers four tunnel
    dryers and three fluid bed dryers. One
    additional fluid bed dryer, located in Building
    AP16, is used exclusively
    for research and development operations and is not involved
    in
    the normal operating processes
    in Building APl6. Therefore, our proposed amendment
    does not include
    that dryer.
    The tunnel dryers and fluid bed dryers operate on different principles.
    In the use
    of tunnel dryers, materials
    to be dried are spread on trays and placed in a warming
    chamber or "tunnel"
    that circulates warm air over and under the trays.
    A fluid bed dryer is a large vertical cylindrical shaped
    vessel with a diffuser that
    blows
    warm air up from the bottom of the vessel. The wet intermediate granules are
    loaded into the dryer and flow upward, suspended
    in the warm air stream. Abbott has
    increased its use of fluid bed dryers
    for recently developed products because they are
    more efficient and
    produce a more uniform product than the tunnel dryers. Abbott
    anticipates increased use of water
    for
    the
    massing fluid in future products. Abbott
    expects that this preferential
    use of fluid bed dryers and water-based products will
    continue. That
    is, many new products are expected to use fluid bed
    dryers and water-
    based formulations, while
    older products will continue to be manufactured using
    tunnel
    dryers.
    Batches of specific products are typically
    manufactured using either one or more
    tunnel
    dryers, or one or more fluid bed dryers, but not both, because the technologies
    are
    not interchangeable. Individual dryers
    of the same type can typically be used in
    combination or interchangeably
    in many cases, but specific dryers are preferable
    for
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    combining with other equipment in a process train to manufacture certain products from
    an operational efficiency standpoint.
    Abbott manufactures its products using
    batch processes whereby each
    manufacturing process train and its associated equipment (including the dryers) produces
    one product at a time in fixed batch sizes. Process
    trains are designed to accommodate
    batches of different scales,
    with some for large batches and others for small batches.
    Therefore, the scale of a given batch
    plays an important role in determining which of the
    dryers will be most
    efficient. Additionally, in accordance with United States Food and
    Drug
    Administration
    ("US FDA") current Good Manufacturing Practice ("cGMP")
    guidelines, extensive equipment
    cleaning is required between batches of different
    products, resulting
    in up to three days of lost production time. Therefore, Abbott uses a
    campaign strategy to continue running batches of the same product consecutively
    in the
    process train to minimize this cleaning time.
    As currently written, Section 218.480(b) effectively
    defines a 12-month total
    VOM limit on each individual dryer.
    This can limit Abbott's ability to schedule the
    campaigns of
    certain products to maximize the efficiency of the processes. In other
    words, to ensure compliance
    with
    the
    current running 12-month total VOM limit on each
    dryer, for a particular batch,
    Abbott may be required to utilize a dryer with low VOM
    emissions during
    the last 12 months instead of using the dryer that is the
    most efficient
    from a production-scale standpoint.
    Such selection of dryers, based only on the amount
    of VOM that
    has been emitted from an individual dryer during
    the preceding 12 months,
    is an inefficient approach to scheduling
    the use of Abbott's equipment and resources.
    Additionally, the dryer
    selected for a given campaign also depends
    on dryer availability
    4
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    and other
    factors. For example, one dryer may be temporarily out of use to allow for
    cleaning or for unscheduled maintenance requirements. Therefore, the standards, as
    currently defined, can result in wasted resources by requiring Abbott to dry a small
    batch
    of product in our large-scale process train to maintain our equipment-specific VOM
    limits.
    Total annual emissions
    from a dryer result from the quantity of organic solvent
    removed from the different products processed in a dryer over a rolling 12-month period.
    The material is processed in a number of individual campaigns
    for particular products,
    each consisting of multiple
    individual batches. The assignment of a campaign of a
    particular product to one or more dryers
    involves a number of operating factors, such as
    scale and equipment
    availability, that contribute to the efficiency of manufacturing. The
    VOM emission threshold effectively acts as an overriding factor that can force a
    particular production campaign with VOM emissions to be scheduled
    using equipment
    that has low enough recent emissions to avoid exceeding a dryer threshold, but that may
    not otherwise be the optimal or most efficient equipment for the
    campaign. This
    scheduling shift increases the operational
    cost, but results in no environmental benefit,
    because the actual emissions will be the same as if the
    campaign would have used the
    optimal equipment.
    In order to
    ensure Abbott's Lake County manufacturing facilities remain
    competitive with our national
    and global competitors, Abbott must continually seek ways
    of making
    our manufacturing operations more efficient. The scheduling
    inefficiency
    created by Subpart T was identified as one area
    where improvements in efficiency could
    be made and is the basis for the proposed
    amendment. This seems particularly
    5
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    appropriate, as the business
    cost created
    by this
    inefficiency results in
    no environmental
    benefit.
    The most efficient method to manufacture Abbott's products in Building AP 16
    would be to use the dryer that is best suited to the requirements of the production
    schedule and scale, regardless of the amount of VOM that has been emitted from that
    dryer in the past 12 months. Provided that the combined VOM emissions from all of the
    dryers are less than the combined amount allowed under Section 218.480(b), this method
    of operation would not require an increase in allowable VOM emissions from the
    Facility. In fact, the proposed
    amendment would provide Abbott improved production
    flexibility to utilize the most efficient dryers for a given product, while significantly
    lowering the total allowed
    YOM emissions from all the dryers combined.
    Thank you. I'll be happy to answer any questions.
    Abbott reserves the right to supplement or modify this pre-filed testimony.
    Respectfully submitted,
    Dated: February 22, 2008
    Katherine D.
    Hodge
    Lauren C. Lurkins
    HODGE DWYER ZEMAN
    3150 Roland Avenue
    Post Office
    Box
    5776
    Springfield,
    Illinois 62705-5776
    (217) 523-4900
    ABBOTT LABORATORIES,
    B y:/s/ Katherine D. Hodge
    One of its Attorneys
    A BOT:003/Filings/Beno Prefiled Testimony -Final Draft
    6
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
    IN THE MATTER OF:
    )
    ABBOTT LABORATORIES' PROPOSED )
    R08-8
    SITE-SPECIFIC AMENDMENT TO
    ) (Rulemaking -Air)
    APPLICABILITY SECTION
    OF ORGANIC )
    M ATERIAL EMISSION STANDARDS
    AND)
    LIMITATIONS FOR THE CHICAGO AREA;)
    SUBPART T: PHARMACEUTICAL
    )
    MANUFACTURING (35 ILL. ADM. CODE )
    218.480(b))
    )
    P RE-FILED TESTIMONY
    OF ROBERT C. WELLS,
    IN SUPPORT OF PROPOSED SITE-SPECIFIC
    AMENDMENT
    NOW COMES ABBOTT LABORATORIES, by and through its attorneys,
    H ODGE DWYER ZEMAN,
    and pursuant to 35 Ill. Admin. Code § 102.424 and the
    Hearing Officer Order, dated January 31, 2008, submits the following Pre-Filed
    Testimony
    of Robert C. Wells for presentation at the March 7, 2008 hearing scheduled in
    the above-referenced matter:
    TESTIMONY OF ROBERT C. WELLS
    My name is Robert C. Wells. I am employed
    by
    Abbott
    Laboratories as Air
    Manager for Environmental Support in Abbott's Global Environmental Health and Safety
    Department. I provide assistance to Abbott facilities such as Building AP16 with regard
    to environmental compliance and managing environmental performance at our facilities
    under various air regulations. I have twenty-nine years of experience in air quality
    management and the analysis of
    air emissions, emission control and ambient air quality.
    I hold a Bachelor of Science degree in Engineering from Comell University.
    My testimony
    today concerns
    technical aspects of Abbott's proposal for a site-
    specific amendment to Illinois air regulations at 35 Ill. Admin. Code Part 218.480(b), in
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    Subpart T of Part 218. Abbott's proposed site-specific amendment concerns provisions
    impacting the four (4) tunnel dryers (also referred to as
    warm
    air dryers) and three (3)
    fluid bed dryers located in
    Building AP16 at the Abbott Park facility. The dryers are
    used to dry mixtures of active pharmaceutical
    ingredients ("APIs"),
    excipient ingredients,
    and massing
    fluid after they have been processed to produce a solid material with an
    appropriate granule size. The granulated mixture is then used to manufacture dosage
    form products (i.e., tablets, capsules, and granules).
    The tunnel dryers and fluid bed dryers are currently subject to air regulations for
    Volatile Organic Material ("VOM") emissions under 35 111. Admin. Code Part 218,
    Subpart T. Under this standard, an individual dryer is required to control VOM
    emissions if its annual emissions exceed 7.5 tons per year (ton/yr) for a tunnel dryer or 5
    ton/yr for a fluid bed dryer.
    Emissions
    from any one dryer vary from year to year. Historically, emissions
    from each dryer have been significantly below
    the level that would trigger the
    requirement for
    add-on control. Emissions from individual dryers have been held below
    these limits in part by planning production to distribute VOM-emitting production among
    the different equipment. Because of the variability, and because of the significant cost to
    install and operate
    controls for a dryer that would not be justified, these control
    thresholds effectively act as the upper limit for annual VOM emissions from an
    individual dryer.
    At this time, production scheduling can be
    forced to assign one or more dryers to
    a production campaign
    based on the dryers' recent past VOM emissions, assigning one or
    more dryers
    that have low enough recent emissions to avoid exceeding a dryer threshold,
    2
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    but that may not otherwise be the optimal or most efficient equipment for the campaign.
    This scheduling shift increases the operational cost, but
    results
    in no
    environmental
    benefit, because the actual emissions
    will be the same as if the campaign would have
    used the optimal equipment. This scheduling inefficiency was identified as one area
    where improvements in efficiency could be
    made, while not increasing the environmental
    impact of Abbott's operations.
    Two environmental management approaches were identified and considered in
    order to alleviate
    the inefficiency of the Subpart T operating constraints. One alternative
    would be to increase the threshold that would trigger the emission control requirement for
    one or more individual dryers. Such an increase would be justified if the cost of control
    is greater than what is considered economically achievable for Reasonably Available
    Control Technology ("RACT"), which was the justification for establishing the original
    thresholds in Subpart T. A preliminary review of
    emission control costs indicated that
    RACT controls would not be justified even at emission thresholds significantly higher
    than the current limits specified in Subpart
    T. A second alternative would be to treat the
    current control threshold
    as a combined threshold equal to the sum of the individual unit
    thresholds for the seven manufacturing dryers. This approach would remove
    a
    manufacturing
    constraint without increasing the allowable VOM emissions from the
    facility.
    The above alternatives were first evaluated intemally
    within Abbott. Under the
    first approach, while Abbott believes that it would be justifiable to increase
    the emission
    threshold for one or more dryers, it would also
    act to increase the facility's allowable
    emissions, which
    is not necessary to solve problems of manufacturing efficiency.
    The
    3
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    second approach,
    to re-define the emission threshold as a combined threshold for all
    dryers, would remedy manufacturing inefficiencies without increasing overall
    allowable
    VOM emissions.
    Both of these approaches were discussed
    with the Illinois Environmental
    Protection Agency ("Illinois EPA").
    At that time, Illinois EPA indicated that both
    Illinois EPA policy and United
    States Environmental Protection Agency ("USEPA")
    regulations and guidelines would need to be considered in order for the agency to support
    a site-specific amendment to 35
    Ill. Admin. Code Part 218.
    Subsequent
    discussions among Illinois EPA, USEPA, and Abbott's
    representatives identified an existing USEPA program that
    would
    provide
    similar
    operational benefits
    as the combined threshold approach discussed above. USEPA's
    Economic Incentive Programs ("EIPs") are described
    in
    USEPA's
    document, Improving
    Air Quality With Economic Incentive
    Programs, EPA-452/R-01-001, January 2001,
    which was provided as Exhibit 2 to the Statement of
    Reasons for the proposed site-
    specific amendment. Among other programs,
    this guidance includes provisions for a
    Source-Specific Emission Cap
    ("SSEC") as an alternative regulatory approach for
    emission limits that can regulate emissions with greater flexibility
    and efficiency than
    conventional approaches.
    Discussions
    with Illinois EPA and USEPA indicated
    that a SSEC could allow
    individual emission limits to be combined
    into an aggregate cap for the tunnel dryers and
    fluid bed
    dryers, provided that the SSEC is set to a
    level which is less than the units'
    combined historical actual emissions,
    rather than equal to current combined allowable
    emissions. Both Illinois
    EPA and USEPA indicated that a SSEC EIP
    would be an
    4
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    acceptable method to address the applicability provisions
    of Section 218.480(b) with
    respect to Abbott's tunnel dryers and
    fluidized bed dryers.
    Under the
    current regulatory standard, the combined allowable emission
    threshold
    for Abbott's dryers is 45 ton/yr
    of VOM emissions. This is based on the sum of the
    allowable
    emissions for four tunnel dryers at 7.5 ton/yr each and three
    fluid bed dryers at
    5.0 ton/yr each. A SSEC within the EIPs would typically
    require allowable emissions to
    be reduced below
    a baseline level defined by the historical actual emissions for the units.
    Under USEPA guidelines, historical actual emissions are defined
    as the highest actual
    emissions from any 2-year period within the last
    10 years of operation. In addition, the
    EIP requires a demonstration of
    environmental benefit, which can be achieved by setting
    an emission limit 10 percent below the baseline
    emissions. Such a program would be
    more constraining than
    either of the two alternatives proposed by Abbott. However,
    while
    either
    of Abbott's original alternatives would likely be
    approvable, it was
    recognized that it would
    be more administratively efficient to work within the
    EIPs
    framework
    if it were otherwise acceptable to achieve Abbott's
    goals.
    Abbott reviewed its historical actual emissions
    to determine if a SSEC would be
    appropriate.
    Actual emissions from the seven dryers are shown in Exhibit 3 of the
    Statement of Reasons for this site-specific amendment.
    In accordance with USEPA
    guidance, the baseline emissions
    for Building AP 16 were calculated to be
    22.9 ton/yr
    based on the
    historical actual emissions from the highest
    2-year period of the past 10
    years. Thus, in order
    to demonstrate environmental benefit
    as described in the EIP
    guidance, the total allowable combined emissions
    from the seven dryers under the
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    proposed SSEC
    would need to be set at a level 10 percent lower than the calculated
    baseline
    emissions, or 20.6 ton/yr of V OM.
    In comparison with this prospective limit,
    the current combined allowable VOM
    emission rate,
    based on the individual thresholds for each of the seven dryers,
    is 45
    ton/yr. Although Abbott could operate at this emission
    level if needed for operations, its
    historical actual emissions have
    consistently been lower than the current combined
    allowable emissions for the seven dryers.
    Thus, the current allowable combined emission
    rate is higher than what Abbott
    is proposing under the amended site-specific standard.
    Abbott considers the
    flexibility to shift production among the dryers to be more
    important
    than the ability to operate with current maximum overall emissions. Therefore,
    the
    principal requirement for
    a SSEC under the EIP, a combined allowable emission
    threshold
    lower than historical actual emissions, would be an acceptable
    alternative to
    Abbott.
    In order to ensure that the proposed site-specific
    amendment to 35 Ill. Admin.
    Code § 218.480(b) is consistent with USEPA
    guidance regarding EIPs, and to realize the
    administrative benefit of
    a program that is acceptable to all prospective parties,
    the
    program must satisfy three fundamental
    principles of USEPA's EIP program: integrity,
    equity and environmental
    benefit. These are defined and discussed in USEPA's
    Improving Air Quality
    with Economic Incentive Program. See
    Exhibit 2, Statement of
    Reasons. Consistency with each of these three principles
    is discussed separately below.
    The principle
    of integrity consists of four elements:
    emissions must be surplus,
    quantifiable, enforceable, and permanent.
    Note that these terms have specific
    meanings,
    and are different for a SSEC
    than for other programs addressed
    by the policy. Id. at 35.
    6
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    Emissions
    are surplus because the baseline for the prospective SSEC for
    the seven dryers is based on the historical actual emissions for these units,
    and because the program will reduce emissions below this baseline.
    Emissions are quantifiable because the
    calculation of both baseline
    emissions and
    future emissions under the SSEC is based on a mass
    balance
    for a solvent evaporation process with VOM among the materials
    used. A mass-balance calculation is considered to be a very reliable
    methodology for quantifying VOM emissions on a 12-month average
    basis.
    The methodology for quantifying emissions from the dryers is
    already well documented in the facility's CAAPP Permit.
    Emissions
    are enforceable because the program is to be incorporated into
    35 Ill. Admin. Code Part
    218, approved by USEPA as part of Illinois'
    State Implementation
    Plan for ozone attainment, and incorporated into the
    facility's
    CAAPP Permit as an applicable requirement. Enforcement will
    be
    based on the same program that is now in place in the CAAPP Permit,
    where emissions are tracked by mass-balance emission calculations based
    on production records.
    Emissions are permanent because the site-specific amendment
    to 35 Ill.
    Admin. Code Part 218 will memorialize
    the conditions.
    The principle
    of equity is evaluated to ensure that the EIPs program does not
    result in "an uneven distribution of emissions or ... effects."
    Id. at 46. This program is
    not of concern for equity issues
    for three reasons.
    This program focuses exclusively on VOM emissions
    from one particular
    facility. Therefore, there is no concern
    for impacts in one area that must
    be balanced equitably with reductions in another area. In addition, the
    EIP
    will result in lower emissions than the historic actual emissions
    for the
    units in the sole area of impact. Therefore, there
    will
    be
    no area of
    increased environmental impact that must be
    balanced against an overall
    impact reduction. In concurrence, USEPA
    guidance indicates that equity
    issues are typically not of concern
    for a single-site SSEC program. Id. at
    50.
    Emissions of VOM have environmental effects on a regional
    scale rather
    than a localized impact. Also, the
    overall impact of the program will be
    positive because both allowable and historical actual emissions will be
    reduced.
    The principle of environmental benefit is satisfied
    by the intention for the
    p rogram to reduce
    emissions 10 percent below historical actual
    levels. While other
    7
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    demonstrations of benefits may
    be appropriate, the 10 percent emission reduction criteria
    is clearly defined
    by USEPA as appropriate for demonstration of environmental
    benefit.
    Id. at 51. Illinois EPA and USEPA both agreed that Abbott's proposal
    met the criteria for
    a SSEC EIP.
    In summary, the proposed site-specific amendment will result
    in significant
    enviromnental benefits. Maximum future allowable
    emissions of 20.6 ton/yr from the
    seven
    dryers will be 10 percent below the historical actual emissions determined by
    USEPA criteria (22.9 ton/yr). Future actual
    combined emissions from the seven dryers
    will be well below what
    is currently allowed for the units (45 ton/yr).
    At the same
    time, the proposed site-specific amendment will provide increased
    operational efficiency and flexibility
    that will be valuable to Abbott in addressing our
    national and global
    competitors. As importantly to the overall result, Abbott's increased
    flexibility
    can be achieved without relaxing the stringency of the
    current emission control
    thresholds.
    I would like to thank the Board for its time and
    attention in considering our
    proposal and my testimony. I would also
    like to thank the Illinois EPA for working with
    Abbott to identify a practical site-specific amendment for greater regulatory
    efficiency. I
    would be happy to answer any questions.
    Electronic Filing - Received, Clerk's Office, February 22, 2008

    Abbott reserves the right to supplement
    or modify this pre-filed testimony.
    Respectfully submitted,
    ABBOTT LABORATORIES,
    By:/s/ Katherine D. Hodge
    One of its Attorneys
    Dated: February 22, 2008
    K atherine D. Hodge
    Lauren C. Lurkins
    H ODGE DWYER ZEMAN
    3150 Roland Avenue
    Post Office Box 5776
    Springfield, Illinois 62705-5776
    (217) 523-4900
    ABOT:003/Filings/Wells Prellled Testimony-Final
    Draft
    Electronic Filing - Received, Clerk's Office, February 22, 2008

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