BEFORE THE ILLINOIS
    POLLUTION CONTROL BOARD
    O F:
    ABBOTT LABORATORIES'
    PROPOSED
    -SPECIFIC AMENDMEN
    PLICABILITY
    SECTION OF ORGANIC
    TERIAL EMISSION
    STANDARDS AND )
    LIMITATIONS FOR THE CHICAGO AREA; )
    SUBPART T:
    218.480(b))
    Kathleen
    M. Crowley
    Hearing
    Officer
    Illinois Pollution Control Board
    100 West Randolph Street
    NOTICE OF FILING
    TO: Mr. John Therriault
    Assistant Clerk of the Board
    ois Pollution Control Board
    100
    West
    Randolph Street
    -500
    g o, Illinois 60601
    ELECTRONIC MAIL)
    e 11-500
    R08-8
    (Rulemaking - Air)
    Illinois
    60601
    (VIA U.S. MAIL)
    ACHED SERVICE L
    ICE that
    linois Pollution Control Board MOTION
    is herewith served upon you.
    Respectfully submitted,
    By:
    Dated: April 7, 2008
    ine D. Hodge
    Lauren C. Lurkins
    HODGE DWYER 2E
    3150 Roland Avenue
    Post Office Box 5776
    62705-5776
    THIS TILING SUBMITTED ON RECYCLED PAPER
    Electronic Filing - Received, Clerk's Office, April 7, 2008

    CERTIFIC OF SERVICE
    I, Katherine
    D. Hodge, the undersigned, hereby certify
    that I have served
    MOTION TO CORRECT TRANSCRIPT
    upon:
    Assistant
    Clerk of the Board
    Illinois Pollution Control Board
    100 West Randolph Street
    Suite
    I1-500
    ago, Illinois 60601
    via electronic mail on April 7, 2005; and upon:
    Kathleen M. Crowley
    Matthew J. Dunn, Chief
    Hearing Officer
    Environmental
    Bureau North
    ois Pollution Control Board
    Office of the Attorney
    General
    'hompson Center
    69 West Washington Street, Suite 1800
    100 West Randolph Street, Suite 11-500
    Chicago, Illinois
    60602
    Chicago, Illinois 60601
    ion Agency
    ue East
    Post Office Box 19276
    62794-9276
    Resources
    linois 62702-1271
    ument in the United States Mail, postage pre
    on April 7, 2008.
    /s/ Katherine D.
    A BOT:003/FilingsiNOF & COS, Mtn to Correct Transc
    Electronic Filing - Received, Clerk's Office, April 7, 2008

    BEFORE THE ILLINOIS POLLU'.
    OF:
    BOTT LABORATORIES' PROPOSED
    SITE-SPECIFIC AMEND
    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
    aking -Air)
    MOTION TO CORRECT
    ES AB
    RAN SCRIPT
    OTT LABORATORIES, by and through its attorneys,
    HODGE DWYER ZEMAN, and pursuant to 35 Ill. Admin. Code
    ยง
    1
    3
    3
    Pollution Control Board ("Board") order the correction
    his matter held on March 7, 2008. as .follows:
    17
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    ION CONTROL BOARD
    01..604, requests that
    Laboratories" to "Abbott Laboratories"'
    Insert "Area" after "Chicago"
    Change "218.408(b)" to "218.480(b)"
    Change "rule making" to "rulemaking"
    Change "Zeeman" to "Zeman"
    Change "hearing" to
    Change
    "apply" to "applies"
    Change "effected" to "affected"
    Change "Program" to "Programs"
    Change
    "EIP's" to "ElPs"
    Change "EPA-452/R-01-001" to "EPA-452/R_01-001"
    Change "Granulation Process Fluid Bed Drawi
    "Granulation Process - Fluid Bed Drying"
    Change "air" to "bed"
    rt "and" after "months"
    Change "results" to "result"
    Change`
    Change "effected" to "affected"
    Change "One be
    to
    "One would be to"
    Electronic Filing - Received, Clerk's Office, April 7, 2008

    28
    15
    Change "insure" to "ensure"
    29
    14
    Change "record keeping"
    to "recordkeeping"
    31
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    Change "Exhibit 8" to "Exhibit
    6"
    31
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    Change "rule making" to "rulemaking"
    32
    10
    Change "rule making" to "rulemaking"
    32
    22
    Change "over"
    to "after"
    35
    15
    Change "tunnel dryer three"
    to "tunnel dryer four"
    36
    15
    Insert "of' after "some"
    43
    9
    Change "tectmology.
    Meaning" to "tect-mology, meaning
    43
    13
    Change "batch, and then"
    to "batch. And then"
    43
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    Change "ethanol, use not" to "ethanol use, not"
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    Delete the
    comma after
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    Delete the comma
    after
    45
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    Change "that is ," to
    46
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    Change "PSR" to "PSD"
    46
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    Change "80.186" to "80186"
    46
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    Change "We" to "Well"
    50
    9
    Change the period to a question mark
    50
    16
    Change "28.480(b)" to "218.480(b)"
    WHEREFORE, for
    ons set forth above,
    0
    hearing transcript as set
    forth above.
    Respectfully
    submitted,
    DRIES,
    By: /s/ Katherine D. Hoc
    One of its Attorneys
    Dated: April 7, 2008
    erine D. Hodge
    Lauren C. Lurkins
    HODGE
    DWYER ZEMAN
    3150 Roland Avenue
    Post Office Box 5776
    I
    217)
    523-4900
    s 62705-5776
    ABOT:003/Filings/Motion to Correct Transcript
    Electronic Filing - Received, Clerk's Office, April 7, 2008

    1
    1
    BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
    2
    3 IN THE MATTER OF:
    )
    4
    )
    5 ABBOTT LABORATORIES'
    )
    6 PROPOSED SITE-SPECIFIC
    )
    7 AMENDMENT TO APPLICABILITY
    )
    8 SECTION OF ORGANIC MATERIAL ) NO. R08-8
    9 EMISSION STANDARDS AND
    ) (Rulemaking-Air)
    10 LIMITATIONS FOR THE CHICAGO )
    11 AREA; SUBPART T:PHARMACEUTICAL )
    12 MANUFACTURING (35 ILL.ADM.CODE )
    13 218.480(b)
    )
    14
    15
    16
    REPORT OF PROCEEDINGS had before the
    17 ILLINOIS POLLUTION CONTROL BOARD held on March 8,
    18 2008, at 1:00 o'clock p.m. at the Libertyville
    19 Village Hall, 118 Cook Road, Libertyville, Illinois.
    20
    21
    22
    23
    24

    2
    1 A P P E A R A N C E S:
    2
    MEMBERS PRESENT:
    3
    4 ANAD RAO, CHAIRMAN
    THOMAS E. JOHNSON, MEMBER
    5 NICHOLAS J. MELAS, MEMBER
    6
    7 CHARLES MATOESIAN
    8 Illinois Environmental Protection Agency
    9
    HODGE DWYER ZEMAN
    10 BY: MS. KATHERINE D. HODGE
    3150 Roland Avenue
    11 Post Office Box 5776
    Springfield, Illinois 62705-5776
    12 (217) 523-4900
    13
    On behalf of Abbott Laboratories;
    14
    15
    16
    17
    18
    19
    20
    21
    22
    23
    24

    3
    1
    MS. CROWLEY: Good afternoon. This is
    2
    a hearing being conducted by the Illinois
    3
    Pollution Control Board in a matter of
    4
    our docket number R08-8 Abbott Laboratories
    5
    proposed site specific amendment to
    6
    applicability section of organic material
    7
    emission standards and limitations for the
    8
    Chicago, Subpart-T, Pharmaceutical
    9
    manufacturing at 35 Illinois Administrative
    10
    Code 218.408(b).
    11
    The Board opened this docket
    12
    October 4th to consider Abbott's proposal for
    13
    site specific rulemaking. In addition to
    14
    myself, present from the Board today are
    15
    seated to my immediate right, Board member
    16
    Nicholas J. Melas, who is the lead Board
    17
    member for this rulemaking. Seated to my
    18
    immediate left is Anad Rao, an environmental
    19
    engineer on the board's technical staff, and
    20
    seated to Mr. Rae's left is Board member
    21
    Thomas E. Johnson.
    22
    Board member Andrea Moore asked me
    23
    to remind you that she is abstaining from any
    24
    participation in the hearing or decision

    4
    1
    making in this rulemaking as she owns a small
    2
    amount of stock in Abbott and also has close
    3
    family members who are employed by Abbott.
    4
    Would you like to make any remarks at this
    5
    point, Mr. Melas?
    6
    MEMBER MELAS: Nothing else but to
    7
    welcome you all here. It will be a pleasure
    8
    listening to the answers to the pre-filed
    9
    questions.
    10
    MS. CROWLEY: Today we're holding the
    11
    first and only hearing currently scheduled in
    12
    this rule making. I see that there are no
    13
    members of the public present so I will cut
    14
    short the introductory remarks that we
    15
    usually make a little bit.
    16
    The proceeding is governed by the
    17
    Board's procedural rules. All information
    18
    that is relevant and not repetitious is
    19
    admitted into the record. The Board makes
    20
    its rulings on the basis of its sworn and
    21
    transcribed records. So the hearing officer
    22
    will be asked to swear in the witnesses. I
    23
    also want to remind you that any questions
    24
    that may be posed today by any member of the

    5
    1
    Board or staff are intended solely to develop
    2
    a complete and clear record for the Board and
    3
    are not intended to reflect any prejudgment
    4
    of the proposal.
    5
    The hearing today will consider
    6
    both the technical justification of the
    7
    proposal, as well as any economic impact of
    8
    the proposed rules as required by Section
    9
    27-B of the Environmental Protection Act. On
    10
    October 18, 2007 the Board requested The
    11
    Department of Commerce and Economic
    12
    Opportunity to conduct an economic impact
    13
    study. That department has not responded to
    14
    this request or pre-filed a study within the
    15
    45-day period the Act provides, so the Board
    16
    will be basing its decision on the economic
    17
    information that is provided today and in any
    18
    post-hearing comments. The Board has
    19
    received pre-filed testimony in this
    20
    proceeding only from the two witnesses from
    21
    Abbott. We also have some pre-filed
    22
    questions that were developed by the Board
    23
    and given to the parties on March 4, 2008.
    24
    So we will begin, I think, by asking the

    6
    1
    attorneys to introduce themselves and then we
    2
    will turn the proceedings over to Ms. Hodge
    3
    for Abbott.
    4
    MS. HODGE: Thank you very much. Good
    5
    afternoon, everyone. Thank you for allowing
    6
    us to come here today to present support for
    7
    our proposal. My name is Katherine Hodge,
    8
    H-O-D-G-E, and I'm with the Hodge Dwyer
    9
    Zeeman here today representing Abbott
    10
    Laboratories.
    11
    MR. MATOESIAN: Good afternoon. I'm
    12
    Charlie Matoesian. I'm with the Illinois
    13
    Environmental Protection agency. I'm hearing
    14
    appearing for the agency, although we are not
    15
    part of the filing per se.
    16
    MS. HODGE: Also present with me today
    17
    on behalf of Abbott Labs is Mr. Steve
    18
    Ziesmann, right here. He is the senior
    19
    counsel for legal and regulatory compliance
    20
    for Abbott. Diane Beno, to my immediate
    21
    left. She is the manager of Abbott's
    22
    operations in building AB16, some of which
    23
    are the topic for this proceeding. Mr. Bob
    24
    Wells to her left, and Bob is the air manager

    7
    1
    for environmental support in Abbott's global
    2
    environmental health and safety department
    3
    and then Mr. Keith Marhafka, and he is the
    4
    environmental health and safety manager for
    5
    building AB16.
    6
    MS. CROWLEY: I'm sorry, I didn't
    7
    catch the first and last names, if we could
    8
    say them again.
    9
    MS. HODGE: Steven Ziesmann,
    10
    Z-I-E-S-M-A-N-N. Diane Beno. Robert Wells.
    11
    You have that, and Mr. Keith Marhafka, M-A-R-
    12
    H-A-F-K-A.
    13
    MS. CROWLEY: Thank you.
    14
    MS. HODGE: And I have just a short
    15
    opening statement to make, and then we'll
    16
    move on to our two witnesses for today.
    17
    Abbott owns a pharmaceutical
    18
    manufacturing building located at 100 Abbott
    19
    Park Road in Unincorporated Lake County in
    20
    Libertyville Township, Illinois. Abbott
    21
    produces a number of pharmaceutical products
    22
    at this facility. And these operations are
    23
    subject to 35 Illinois Administrative Code,
    24
    Subpart-T, Pharmaceutical Manufacturing. As

    8
    1
    it is currently written, Subpart-T, and in
    2
    particular section 218.480(b) contains
    3
    certain exemptions that are applicable to
    4
    Abbott's air suspension of coater dryers,
    5
    fluid bed dryers, tunnel dryers, and
    6
    accelacotas, a-c-c-e-l-a-c-o-t-a-s, located
    7
    in building AB16 of the facility.
    8
    Today through our testimony and in
    9
    response to questions, we intend to
    10
    demonstrate that Abbott's proposal to amend
    11
    these site specific exceptions will, one,
    12
    allow Abbott to use the combined actual
    13
    emissions from its effective tunnel bed
    14
    dryers and fluid bed dryers to determine the
    15
    applicability of Subpart-T to these units;
    16
    and, two, decrease the overall VOM emissions
    17
    that would be allowed below the level of
    18
    historical actual emissions from the tunnel
    19
    dryers and fluid bed dryers as a group
    20
    relating to the 35 Illinois Administrative
    21
    Code, Section 218.480(b), the VOM exemption,
    22
    while at the same time increasing operational
    23
    flexibility by allowing preferential use of
    24
    the more efficient dryer or dryers for a

    9
    1
    particular manufacturing campaign.
    2
    The proposed amendment also will
    3
    not impose any new control requirements on
    4
    any other source other than Abbott's
    5
    facility. The proposed amendment will not
    6
    result in any increase in emissions. First
    7
    before offering testimony in support of our
    8
    proposal, I would like to address a matter
    9
    raised in the hearing officer order dated
    10
    January 31, 2008. As you know, Ms. Crowley
    11
    requested Abbott to address economic and
    12
    budgetary effects, issues associated with our
    13
    proposal. In that regard, the proposed rule
    14
    if adopted by the Board apply only to
    15
    specific emission units within Abbott's
    16
    facility, and again the proposed rule will
    17
    allow for increased operational flexibility
    18
    at Abbott's facility which in turn will
    19
    result in more efficient and cost effective
    20
    production of pharmaceutical products.
    21
    Moreover the proposal will not impose any new
    22
    requirements upon the Illinois EPA, so there
    23
    will be no budgetary effect. In light of the
    24
    limited and site specific nature of the

    10
    1
    proceeding and the information set forth in
    2
    Abbott's proposal and the testimony to be
    3
    presented today in answers to questions,
    4
    Abbott believes there's sufficient
    5
    information in this record for the Board to
    6
    make an analysis of the economic and
    7
    budgetary effects of the proposal. However,
    8
    Abbott would be happy to answer any questions
    9
    the Board may have on this topic.
    10
    Abbott will present two witnesses
    11
    today, and first Ms. Diane Beno. She is the
    12
    plant manager of the portion of the Abbott
    13
    facility internally known as Building AB16.
    14
    Ms. Beno will provide information about the
    15
    processes carried out in Building AB16 and
    16
    the products manufactured at that location.
    17
    Mr. Robert Wells is the air manager for
    18
    environmental support in Abbott's Global and
    19
    Environmental Health and Safety Department,
    20
    and he will testify as to the technical
    21
    description of the process and dryers at
    22
    issue in this rulemaking. He will also
    23
    discuss the current rule and explain how it
    24
    causes inefficiencies in the operations, and

    11
    1
    then he will discuss the methods Abbott has
    2
    utilized in an attempt to alleviate those
    3
    inefficiencies. Finally, Mr. Wells will
    4
    discuss the emissions from the effected
    5
    dryers from both a historical and prospective
    6
    perspective. The testimony of these two
    7
    witnesses also will demonstrate that Abbott
    8
    has worked closely with the Illinois EPA and
    9
    the US EPA on this issue over the course of
    10
    several years. We thank both the Illinois
    11
    EPA and the US EPA for working with us in
    12
    trying to resolve this issue and we
    13
    appreciate Illinois EPA's participation here
    14
    today.
    15
    As set forth in Abbott's proposal
    16
    that was filed with the Board on September 4,
    17
    2007, Abbott's testimony today will focus on
    18
    the concept called the "Source Specific
    19
    Emissions Cap EIP." Abbott included a full
    20
    copy of the US EPA guidance document entitled
    21
    "Improving Air Quality With Economic
    22
    Incentives Program," and that was included as
    23
    Exhibit 2 to our initial proposal. The EIP
    24
    guidance provides direction on a number of

    12
    1
    types of EIPs, including the source specific
    2
    emission caps. The EIP guidance provides
    3
    that there are fundamental principles that
    4
    must be included in every EIP; number one,
    5
    integrity; number two, equity; and three,
    6
    environmental benefit. All EIP's must
    7
    contain four elements that compose the
    8
    integrity principle: Surplus, quantifiable,
    9
    enforceable and permanent. Second, with
    10
    regard to the equity principle, all EIP's
    11
    must contain an element of general equity.
    12
    Finally as noted, all EIP's must demonstrate
    13
    environmental benefit.
    14
    A source specific emissions cap
    15
    EIP allows a specified stationary source or a
    16
    limited group of sources that are subject to
    17
    a rate based emission limit to meet that
    18
    requirement by accepting a mass based
    19
    emission limit or cap rather than complying
    20
    directly with the rate based limit. The US
    21
    EPA's stated goal for this type of EIP is
    22
    compliance flexibility. Abbott in
    23
    consultation with both the Illinois EPA and
    24
    the US EPA relied upon and followed this

    13
    1
    federal guidance in formulating its proposal.
    2
    Mr. Wells will provide additional detail in
    3
    how Abbott's proposal is consistent with the
    4
    Federal guidance for source specific
    5
    emissions cap EIP's.
    6
    With that, if there are no
    7
    questions, I would like to move ahead with
    8
    the testimony of Ms. Diane Beno and Mr. Bob
    9
    Wells. And Ms. Beno is going to, her
    10
    testimony is short and she would like to go
    11
    ahead and read that into the record. Bob's
    12
    testimony, we're happy to enter into the
    13
    record as if read, but he would like to offer
    14
    a summary, and we'll be happy to move to
    15
    Board questions or, you know, to agency
    16
    questions as appropriate.
    17
    MS. CROWLEY: Can we go off the record
    18
    for a one moment.
    19
    (Discussion off the record, after
    20
    which the following proceedings
    21
    were had:)
    22
    MS. CROWLEY: Go back on the record.
    23
    We discussed briefly entering some of the
    24
    exhibits to the original proposal as hearing

    14
    1
    exhibits just to keep the record tidy. So
    2
    the first Exhibit will be Exhibit 1, which is
    3
    an aerial photograph of Abbott Park and
    4
    vicinity in Libertyville Township and is so
    5
    labeled. The second will be the US EPA
    6
    document that is entitled "Improving Air
    7
    Quality With Economic Incentive Programs"
    8
    prepared by the United States Environmental
    9
    Protection Agency, dated January 2001, and
    10
    that is EPA document number EPA-452/R-01-001.
    11
    And then finally, the third exhibit is
    12
    Exhibit 3 entitled "Revised Exhibit 3," dated
    13
    2-29-08 entitled "Historical VOM Air
    14
    Emissions From Tunnel Dryers And Fluid Bed
    15
    Dryers At The Abbott Park Facility." For the
    16
    record this is slightly revised from the copy
    17
    that was attached as Exhibit 3 to Abbott's
    18
    original September 4th proposal. So those
    19
    are marked and entered into the record as
    20
    exhibits.
    21
    Now you may proceed.
    22
    MS. HODGE: Thank you. I do have
    23
    extra copies of this pre-filed testimony here
    24
    today, but I'm assuming everyone has a copy.

    15
    1
    With that, I think we're ready to move ahead
    2
    with Ms. Beno. And I'm not sure how you want
    3
    to handle the --
    4
    MS. CROWLEY: I'm sorry, I didn't
    5
    quite hear that.
    6
    MS. HODGE: I think we're ready to
    7
    move forward.
    8
    MS. CROWLEY: Yes, go ahead.
    9
    (WITNESSES SWORN.)
    10
    DIANE BENO
    11 Having been first duly sworn, was examined and
    12 testified as follows:
    13 BY MS. BENO:
    14
    Thank you for the opportunity to
    15 speak here today. My name is Diane Beno. I am the
    16 plant manager of the portion of the Abbott
    17 Laboratories facility internally known as AB16. The
    18 operations contained in AB16 produce intermediate
    19 and final product formulations including liquids,
    20 tablets, capsules packaged in bottles and blister
    21 formats. The general process flow includes receipt
    22 of raw materials, weighing of ingredients, massing
    23 and granulation of ingredients, coating tablets or
    24 particles, printing symbols onto tablets and

    16
    1 packaging finished products for distribution.
    2
    Over the course of a year we
    3 produce many different products in building AB16.
    4 For example, we produce products that treat diseases
    5 in the field of neuroscience such as epilepsy and
    6 bipolar disorder. We make anti-viral products for
    7 the treatment of AIDS. We manufacture products to
    8 fight infection. We package products that help
    9 patients achieve healthy cholesterol levels and
    10 products that improve the lives of people with
    11 rheumatory arthritis, psoriasis and Crohn's disease.
    12 We manufacture our products using batch production
    13 processes. In batch production all of the
    14 processing equipment in a process train, including
    15 the dryers, manufactures one product at a time.
    16 Each batch is completed before the manufacture of
    17 the next batch begins. In a typical process, the
    18 active and inactive ingredients are combined with
    19 the liquid in a process called massing. The massing
    20 process forms uniform granules. The wet granules
    21 are dried in tunnel dryers or in fluid bed dryers
    22 and then further processed into tablets or capsules.
    23 The massing fluid which is typically either water or
    24 ethanol is evaporated from the solid material in the

    17
    1 drying step. If an organic solvent is volatilized
    2 from the dryer, it is emitted to the ambient air as
    3 VOM or VOC. The quantity of VOM emissions will vary
    4 for different products and is calculated from the
    5 quantity of VOM added to the mixture and loss
    6 factors defined for the dryers and specified in the
    7 Clean Air Act Permitting Program permit for the
    8 facility. It's also important to note that the
    9 organic solvent currently used in granulation and
    10 dried from the granulated mixtures in building AB16
    11 is ethanol. Ethanol is a VOM, but it's not
    12 considered a Hazardous Air Pollutant or HAP. The
    13 proposed site specific amendment will have no impact
    14 on HAP emissions.
    15
    Abbott's proposed site specific
    16 amendment for building AB16 covers four tunnel
    17 dryers and three fluid bed dryers. One additional
    18 fluid bed dryer located in building AB16 is used
    19 exclusively for research and development and is not
    20 involved in the normal operating processes in
    21 building AB16; therefore our proposed amendment does
    22 not include that dryer. The tunnel dryers and fluid
    23 bed dryers operate on different principles. We have
    24 some diagrams here to help explain this point, so

    18
    1 I'll go ahead and pass these out. I think this will
    2 help us make a point. I think this will be helpful
    3 as we get into the pre-filed questions later on. So
    4 as I stated --
    5
    MS. CROWLEY: Just one moment. I'd
    6
    like to mark this as Exhibit 4, if you have
    7
    no objection, and it's a single-page document
    8
    with a heading "Granulation Process Fluid Bed
    9
    Drawing." Thank you. Go ahead.
    10
    MS. BENO: The tunnel dryers and fluid
    11
    bed dryers operator on different principles.
    12
    In the use of tunnel dryers depicted on the
    13
    lower half of the exhibit, materials are
    14
    spread on trays and placed in a warming
    15
    chamber or tunnel that circulates warm air
    16
    over and under the trays. As shown in the
    17
    upper portion of the diagram, a fluid bed
    18
    dryer is a large vertical cylindrical shaped
    19
    vessel with a diffuser that blows warm air up
    20
    from the bottom of the vessel. The wet
    21
    intermediate granules are loaded into the
    22
    dryer, and flow upward suspended in a warm
    23
    air stream.
    24
    Abbott has increased its use of

    19
    1
    fluid air dryers for recently developed
    2
    products because they are more efficient and
    3
    produce a more uniform product than the
    4
    tunnel dryers. Abbott anticipates increased
    5
    use of water for massing fluid in future
    6
    products, and Abbott expects that this
    7
    preferential use of fluid bed dryers and
    8
    water based products will continue. That is,
    9
    many new products are expected to use fluid
    10
    bed dryers and water based formulations,
    11
    while older products continue to be
    12
    manufactured using tunnel dryers.
    13
    Batches of specific products are
    14
    typically manufactured using either one or
    15
    more tunnel dryers or one or more fluid bed
    16
    dryers, but not both because the technologies
    17
    are not interchangeable. Individual dryers
    18
    of the same type can typically be used in
    19
    combination or interchangeably in many cases,
    20
    but specific dryers are preferable for
    21
    combining with other equipment in a process
    22
    train to manufacture certain products from an
    23
    operational efficiency standpoint.
    24
    Abbott manufactures its batch

    20
    1
    processes whereby each manufacturing process
    2
    train and its associated equipment, including
    3
    the dryers, produces one product at a time in
    4
    fixed batch sizes. Process trains are
    5
    designed to accommodate batches of different
    6
    scales with some for large batches and some
    7
    for small batches. Therefore, the scale of a
    8
    given batch plays an important role in
    9
    determining which of the dryers will be most
    10
    efficient. Additionally, in accordance with
    11
    the U.S. Food and Drug Administration current
    12
    good manufacturing processes, extensive
    13
    equipment cleaning is required between
    14
    batches of different products, resulting in
    15
    up to three days of lost production time.
    16
    Therefore Abbott uses a campaign strategy to
    17
    continue running batches of the same product
    18
    consecutively in the process train to
    19
    minimize this cleaning time.
    20
    As currently written 218.480(b)
    21
    effectively defines a 12 month total VOM
    22
    limit on each individual dryer. This can
    23
    limit Abbott's ability to schedule the
    24
    campaigns of certain products to maximize the

    21
    1
    efficiency of the processes. In other words,
    2
    to insure compliance with the current 12
    3
    month VOM limit on each dryer for a
    4
    particular batch, Abbott may be required to
    5
    utilize a dryer with a low VOM emissions
    6
    during the last 12 months, instead of using
    7
    the dryer that is most efficient from a
    8
    production scale standpoint. Such selection
    9
    of dryers is based only on the amount of VOM
    10
    that has been emitted from an individual
    11
    dryer during the preceding 12 months is an
    12
    inefficient approach to the scheduling of
    13
    Abbott's equipment and resources.
    14
    Additionally, the dryer selected for a given
    15
    campaign also depends on dryer availability
    16
    and other factors. For example, one dryer
    17
    may be temporarily out of use to allow for
    18
    cleaning or for unscheduled maintenance
    19
    requirements; therefore the standards as
    20
    currently defined can result in wasted
    21
    resources by requiring Abbott to dry a small
    22
    batch of our product in our large scale
    23
    process train to maintain our equipment
    24
    specific VOM limits. Total annual emissions

    22
    1
    from a dryer result in a quantity of organic
    2
    solvent removed from the different products
    3
    processed in a dryer over a 12-month rolling
    4
    period. The material is processed in a
    5
    number of individual campaigns for particular
    6
    products each consisting of multiple
    7
    individual batches. The assignment of a
    8
    campaign of a particular product to one or
    9
    more dryers involves a number of operating
    10
    factors, such as the scale and equipment
    11
    availability that contribute to the
    12
    efficiency of manufacturing. The VOM
    13
    emission threshold effectively acts as an
    14
    overriding factor that can force a particular
    15
    production campaign with VOM emissions to be
    16
    scheduled using equipment that has low enough
    17
    recent emissions to avoid exceeding a dryer's
    18
    threshold, but that may not otherwise be the
    19
    optimal or most efficient equipment for the
    20
    campaign. This scheduling shift increases
    21
    the operational cost, but results in no
    22
    environmental benefit because the actual
    23
    emissions will be the same as if the campaign
    24
    would have used the optimal equipment.

    23
    1
    In order to assure Abbott's Lake
    2
    County manufacturing facilities remain
    3
    competitive with our national and global
    4
    competitors Abbott must continually seek ways
    5
    of making our manufacturing operations more
    6
    efficient. The scheduling inefficiency
    7
    created by Subpart-T was identified as one
    8
    area where improvements in efficiency could
    9
    be made and is the basis for the proposed
    10
    amendment. This seems particularly
    11
    appropriate as the business costs created by
    12
    this efficiency results in no environmental
    13
    benefit. The most efficient method to
    14
    manufacture Abbott's products in AB16 would
    15
    be to use the dryer that is best suited to
    16
    the requirements of the production schedule
    17
    and scale, regardless of the amount of VOM
    18
    that has been emitted from that dryer in the
    19
    past 12 months. Provided that the combined
    20
    VOM emissions from all of the dryers are less
    21
    than the combined amount allowed under
    22
    section 218.480(b), this method of operation
    23
    would not require an increase in allowable
    24
    VOM emissions from the facility. In fact,

    24
    1
    the proposed amendment would provide Abbott
    2
    improved production flexibility to utilize
    3
    the most efficient dryers for a given product
    4
    while significantly lowering the total
    5
    allowed VOM emissions for all of the dryers
    6
    combined.
    7
    Thank you. I'll be happy to
    8
    answer any questions.
    9
    MS. HODGE: Shall we move on to Bob.
    10
    Why don't you go through a summary of your
    11
    testimony, and then we'll be happy to turn to
    12
    the Board's questions well.
    13
    MS. CROWLEY: That's certainly
    14
    acceptable.
    15
    MR. WELLS: I am going to attempt to
    16
    summarize my testimony in a shorter summary
    17
    than the actual testimony. My name is a
    18
    Robert Wells. I'm air manager for
    19
    Environmental Support in Abbott's Global EHS
    20
    Department. I've been assisting the EHS
    21
    staff with regulatory statutes with our
    22
    proposal, and I'm going to touch on some of
    23
    the technical points that relate to why we
    24
    proposed what we did and where we see that

    25
    1
    we're consistent with the approaches that
    2
    we've proposed.
    3
    The concern today is for
    4
    provisions applicable to seven of the Abbott
    5
    parking units, four tunnel dryers and three
    6
    fluid bed dryers. Subpart-T requires VOM
    7
    controls for tunnel dryers and fluid bed
    8
    dryers if their annual emissions exceed
    9
    seven-and-a-half tons per year for an
    10
    individual tunnel dryer and five tons per
    11
    year for individual fluid bed dryers. The
    12
    seven units therefore have a total potential
    13
    emissions without control of 45 tons per
    14
    year. Because of the cost associated with
    15
    VOM control for this type of equipment, it is
    16
    impractical to add control. So effectively
    17
    the limits before control is required act as
    18
    upper limits on the air emissions from the
    19
    seven units. The actual emissions from these
    20
    units vary year to year based on the quantity
    21
    of production and based on the different
    22
    materials produced. In recent years the
    23
    tunnel dryer emissions have varied from
    24
    six-tenths of a ton to 5.6 per year, each

    26
    1
    year. Fluid bed dryer emissions have varied
    2
    from .1 tons to 3.9 tons per year each where
    3
    the units have been operating. And you can
    4
    see from Exhibit 3 that's where those numbers
    5
    came from, although they were not in my
    6
    pre-filed testimony.
    7
    Abbott sought solutions to
    8
    eliminate manufacturing constraints that
    9
    effected the efficiency of the overall
    10
    operation, and two options were initially
    11
    considered. One be would be to request an
    12
    increase in the threshold that would have to
    13
    be exceeded before control were required, and
    14
    the second would be to refine Subpart-T so
    15
    that the individual unit control would be
    16
    applied as a group to the combined emissions
    17
    of the combined allowed emissions of the
    18
    seven dryers. We evaluated the alternatives,
    19
    and we did some analysis that demonstrated to
    20
    us that it would be justifiable to increase
    21
    the limit for each dryer, that the cost of
    22
    control was such that at the levels that the
    23
    threshold of requiring control and at higher
    24
    levels, that the cost would be beyond

    27
    1
    reasonably available control technology or
    2
    RACT.
    3
    Considering the combined emission
    4
    controlled threshold, we determined that the
    5
    flexibility that we were looking for would
    6
    fit well within that so that there was -- we
    7
    could go forward with that program without
    8
    increasing the allowable emissions from the
    9
    units. We discussed these alternatives with
    10
    Illinois EPA and later with both IEPA and US
    11
    EPA through our attorneys Hodge Dwyer Zeeman.
    12
    And IEPA and US EPA identified a third
    13
    alternative that was preferable to them and
    14
    that was a source specific emission cap,
    15
    SSEC, under US EPA's economic incentive
    16
    program or EIP. The source specific emission
    17
    cap would allow us to combine our future
    18
    emission limits for all the dryers but set to
    19
    a limit below the historical actual emissions
    20
    rather than the previously allowable
    21
    emissions or emissions allowable without
    22
    control. The historical emissions could be
    23
    based on a concept called baseline actual
    24
    emissions defined as the highest two year

    28
    1
    period in the last ten years. I know there
    2
    was some confusion about that following my
    3
    filing of the pre-filed testimony and we're
    4
    prepared to answer that question in detail
    5
    when we go through the prepared questions.
    6
    This is a change from the original definition
    7
    of historical actual emissions that the US
    8
    EPA included in their 2001 guidance. Abbott
    9
    reviewed the actual emissions that we've had
    10
    from the dryers in the most recent ten years,
    11
    and we identified the maximum two-year period
    12
    with emissions of 22.9 tons per year in 1999
    13
    and 2000. As I'll discuss later, a reduction
    14
    of ten percent of that level is applied to
    15
    insure environmental benefit and that results
    16
    in an emission limit for the seven units of
    17
    20.6 tons per year. This restriction would
    18
    be less than half of the 45 ton per year
    19
    effective limit that now applies to the seven
    20
    units taken together. This significantly
    21
    lower allowable limit though is acceptable to
    22
    Abbott's anticipated business and meets our
    23
    needs for flexibility.
    24
    Abbott considered the requirements

    29
    1
    of the EIP program in going forward with this
    2
    in order to define our conformance with the
    3
    three general principles for an EIP,
    4
    integrity, equity and environmental benefit.
    5
    Integrity, the integrity principle focuses on
    6
    the emission reductions themselves and
    7
    requires them to be surplus, bonafiable,
    8
    enforceable and permanent. This proposal
    9
    satisfies those conditions. The emissions
    10
    are surplus because our future allowable
    11
    emissions will be below past baseline
    12
    emissions for the dryers. Our emissions are
    13
    quantifiable because the VOM emissions can be
    14
    readily calculated from process record
    15
    keeping as established in the facility's
    16
    title five permit. The limits are
    17
    enforceable because they will be included in
    18
    Illinois's state implementation plan and also
    19
    in our Title V permit for Abbott Park and
    20
    they are permanent for the same reason. They
    21
    will be established as continuing limits on
    22
    our operations.
    23
    The proposed program satisfies the
    24
    equity principle because it involves only

    30
    1
    emissions at one facility. There is no
    2
    instance of relative increases and decreases
    3
    that must be balanced against one another.
    4
    The program satisfies the environmental
    5
    benefit principle because future emissions
    6
    will be reduced by ten percent below our
    7
    baseline actual emissions.
    8
    So in summary, the proposal limits
    9
    our maximum future allowable emissions to a
    10
    level below what we historically had really
    11
    in the course of the variations in our
    12
    manufacturing, but it will give us the
    13
    flexibility to operate more efficiently.
    14
    Thank you. I'll be happy to
    15
    answer any further questions.
    16
    MS. HODGE: Thank you very much.
    17
    We're ready to move on to the Board's
    18
    questions unless counsel for Illinois EPA has
    19
    anything now?
    20
    MS. CROWLEY: If we could first mark
    21
    as Exhibit No. 5, the pre-filed testimony
    22
    submitted by Mr. Wells on February 22nd, as
    23
    I'm sure he would like the complete testimony
    24
    included in this record.

    31
    1
    MS. HODGE: Yes, he would.
    2
    MS. CROWLEY: We will do that.
    3
    MS. HODGE: Now, we'll turn to the
    4
    questions of the Board that were included in
    5
    the hearing officer order dated March 4,
    6
    2008.
    7
    MS. CROWLEY: And let's mark that as
    8
    Exhibit 8.
    9
    MS. HODGE: And we're not going to
    10
    read the questions. We'll just go straight
    11
    to the answers, if that's acceptable.
    12
    MS. CROWLEY: Unless you are more
    13
    comfortable having us read the questions, we
    14
    can dispense with that.
    15
    MS. HODGE: Okay. Then we'll probably
    16
    answer the questions certainly in order. And
    17
    No. 1, we'll start with --
    18
    MR. WELLS: Question 1-A refers to
    19
    whether the economic feasability for the
    20
    original rule making still applies? The
    21
    answer to that is yes. As a part of this
    22
    process we analyzed the cost of control using
    23
    a methodology developed by the United States
    24
    EPA for what's referred to as BACT analysis,

    32
    1
    Best Available Controlled Technology, and
    2
    using this analysis we found that the cost of
    3
    control was continued to be significantly in
    4
    excess of what's normally considered
    5
    reasonably available control technology. So
    6
    essentially the economics have not changed.
    7
    And as to question 1-B, there have been no
    8
    fundamental changes in emission control
    9
    technology that would be applicable to the
    10
    facility since that original rule making. So
    11
    what we were looking at were the same control
    12
    technologies that were considered at that
    13
    time.
    14
    MEMBER RAO: We're fine with that.
    15
    MS. HODGE: Thank you. And let's move
    16
    on to the Board's question No. 2 dealing with
    17
    emission trends.
    18
    MS. BENO: Okay. 2-A is in regard to
    19
    the lower actual emissions since 2000.
    20
    That's due to many factors. For example,
    21
    pharmaceutical manufacturing business
    22
    activity is highly variable year over year.
    23
    The types of products that we produce in a
    24
    given year can vary based on a number of

    33
    1
    market factors and patient demand. So
    2
    therefore, as I stated in the testimony,
    3
    different products emit different levels of
    4
    VOM. So product mix is a primary factor in
    5
    regard to the variability of our emissions.
    6
    MEMBER RAO: Has there been any change
    7
    in terms of production itself because when we
    8
    look at this, we see some variation but there
    9
    is also a significant, you know, reduction in
    10
    VOM emissions since 2000?
    11
    MS. BENO: As stated in the testimony
    12
    many new products where possible utilize
    13
    water based massing fluid, and so we make an
    14
    attempt using water instead of ethanol or
    15
    other VOM. So therefore the new products
    16
    that have been introduced to the facility
    17
    typically have used water based solvents.
    18
    MEMBER JOHNSON: And there's no VOM
    19
    produced when you use water as a fluid?
    20
    MS. BENO: No, no.
    21
    MEMBER RAO: Do you anticipate VOM
    22
    emissions to increase over time?
    23
    MS. BENO: We don't anticipate them to
    24
    increase over time.

    34
    1
    MEMBER MELAS: I have a question. You
    2
    stated earlier that the fluid bed drying is a
    3
    more efficient way of doing it. Do you
    4
    contemplate over the course of time now that
    5
    you will be phasing out the tunnel drying
    6
    equipment and concentrate on buying or
    7
    purchasing new fluid drying equipment?
    8
    MS. BENO: No, that's not currently
    9
    the plan. In fact, the products that we
    10
    manufacture in the tunnel dryers, we will
    11
    continue to manufacture those in the tunnel
    12
    dryers. To switch between the technologies
    13
    can have an impact on the safety or efficacy
    14
    of the drug product. So it would require a
    15
    lengthy amount of process development and
    16
    studies potentially, even clinical trials, so
    17
    that is the lengthy FDA process I referred
    18
    to.
    19
    MEMBER MELAS: You say there is a
    20
    one-on-one relationship to the type of
    21
    product to the type of dryer?
    22
    MS. BENO: Yes, absolutely.
    23
    MEMBER JOHNSON: Let me ask then.
    24
    There is then in your mind a potential any

    35
    1
    way that your company will begin some time in
    2
    the future to manufacture products that
    3
    either can't use the water as a massing fluid
    4
    and have to use ethanol; there is a potential
    5
    that you'll get back up to VOM rates
    6
    comparable to what they were in '99 and 2000?
    7
    MS. BENO: I wouldn't rule it out. It
    8
    certainly wouldn't be our intent, but I
    9
    wouldn't rule out the possibility.
    10
    I'll move on to B?
    11
    MS. HODGE: Yes.
    12
    MS. BENO: B is in regard to tunnel
    13
    dryer number four specifically, and in
    14
    Exhibit 3 it was noted that there was no VOM
    15
    from tunnel dryer three since 2005, and based
    16
    on Abbott's production needs, tunnel dryer
    17
    No. 4 has not been in use since 2005.
    18
    However, it remains fully validated and
    19
    maintained and available for use should
    20
    production needs demand. So it serves us as
    21
    a back up in the event that one of the other
    22
    tunnel dryers would become unavailable for
    23
    use.
    24
    MEMBER RAO: Since the emissions for

    36
    1
    all these dryers that you have listed in
    2
    revised Exhibit 3 are significantly lower
    3
    than the applicable limits, does Abbott have
    4
    enough flexibility under the current rule
    5
    itself or do you need to have the combined
    6
    limit to provide you that flexibility?
    7
    MS. BENO: We believe we need the
    8
    combined limit to provide flexibility.
    9
    MEMBER RAO: Can you explain a little
    10
    more why, if you don't have enough
    11
    flexibility under the current rule?
    12
    MS. BENO: It's based on the highly
    13
    variable nature of the product mix in the
    14
    facility. So in the event we were to run
    15
    more or some the products that have an
    16
    ethanol based mass in fluid, it would prevent
    17
    us from using the most effective and
    18
    efficient equipment.
    19
    MEMBER RAO: Have you had that kind of
    20
    situation in the past?
    21
    MS. BENO: What specific situation?
    22
    MEMBER RAO: Where you were not able
    23
    to use whatever dryer you wanted to under the
    24
    current rules.

    37
    1
    MS. BENO: It's become very close.
    2
    MEMBER RAO: Looking at this data that
    3
    you have provided, fluid bed dryer 3
    4
    obviously could be the one which is kind of
    5
    closer to its limit?
    6
    MS. BENO: Right.
    7
    MEMBER RAO: Is that a situation where
    8
    you see and you'd need to use another dryer
    9
    similar to that again?
    10
    MS. BENO: Yes, absolutely. Fluid bed
    11
    dryer 3 in Exhibit 3, as you noted, has
    12
    reached 3.9 in recent years which approaches
    13
    our current limit.
    14
    MEMBER RAO: Thank you.
    15
    MS. HODGE: Let's move on to the
    16
    questions in the Board's order relating to
    17
    the pre-filed testimony of Ms. Beno, and
    18
    question No. 1.
    19
    MS. BENO: This is in regard to the
    20
    type of organic massing fluid that we
    21
    currently use, and ethanol has been the only
    22
    organic massing fluid that we've used in
    23
    building AB16 during the ten-year period
    24
    under review for this proposal. I do want to

    38
    1
    note that prior to late 2002 the type of
    2
    ethanol used was denatured ethanol which
    3
    contains a small percentage of methanol as
    4
    the denaturant, but since late 2002 we've
    5
    converted to all beverage grade ethanol which
    6
    does not contain methanol as the denaturant.
    7
    MS. HODGE: Question number two?
    8
    MS. BENO: Again, number two is in
    9
    regards for the basis for choosing the
    10
    massing fluid, and the choice of massing
    11
    fluid is dependent on the particular
    12
    properties of a product. For example, the
    13
    relative solubility of the product in either
    14
    water or ethanol plays a key role in
    15
    determining which solvent will be required
    16
    for the massing fluid. So it's really
    17
    related to the various properties of the
    18
    product we're intending to manufacture
    19
    whether or not water is an option for us or
    20
    not.
    21
    MEMBER RAO: So it's got nothing to do
    22
    with the type of dryer you are using; it's
    23
    all the product you are manufacturing?
    24
    MS. BENO: No, either can be used in

    39
    1
    either dryer. Water or ethanol can be used
    2
    in either drying technology.
    3
    MS. HODGE: Question number three?
    4
    MS. BENO: No. 3, this is in regard to
    5
    increased use of fluid bed dryers and water
    6
    for massing fluid. Abbott does in fact
    7
    expect there will be an increased mass for
    8
    water in new products as I indicated. It's
    9
    not practical to change the ethanol based
    10
    processes to a water based process because of
    11
    the FDA considerations that I indicated
    12
    before had the opportunity to influence the
    13
    safety and efficacy of the product. But we
    14
    do consider the type of massing fluid as we
    15
    developed new products with a preference to
    16
    using water. So accordingly we expect there
    17
    will be an increased use of water for the
    18
    massing fluid for new products. Questions
    19
    there?
    20
    B, this is in regard to the use of
    21
    water to avoid VOM emissions. And in fact
    22
    VOM emission avoidance is one of several
    23
    factors that we consider as one of the
    24
    benefits resulting from increased use of

    40
    1
    water for the massing fluid. Other benefits
    2
    include increased raw material costs, reduced
    3
    worker exposure to organic materials in the
    4
    work place and improved safety due to
    5
    reduction of flammable solvents.
    6
    In regard to C, water based
    7
    products are preferable for a number of
    8
    reasons. As described previously, they are
    9
    preferable because they don't contribute to
    10
    VOM emissions, reduced raw material costs,
    11
    reduced worker exposure and improve overall
    12
    safety to the facility. Those were similar
    13
    questions.
    14
    In regard to the fluid bed dryers
    15
    being more efficient, it's mainly related to
    16
    the way they operate. If you refer to the
    17
    diagram, you can see in a fluid bed dryer,
    18
    individual granules, very small pieces of the
    19
    product are airborne in the warm air stream
    20
    and the air moves around freely on all
    21
    surfaces of the particle or granule drying
    22
    the drying process. This results in a much
    23
    more even drying process and higher quality
    24
    end product because of the evenness of the

    41
    1
    drying. Tunnel dryers on the other hand are
    2
    like cookie sheets in an oven. You hand-load
    3
    the material onto the cookie sheet, onto the
    4
    big rack, push the rack into the tunnel dryer
    5
    and it's exposed to air movement in the
    6
    tunnel. What can happen in a tunnel dryer
    7
    similar to in baking, you could have parts of
    8
    the cookie that are more done than other
    9
    parts of the cookie. Whereas in the fluid
    10
    bed drying technology, a smaller portion of
    11
    the product is exposed to the warm air across
    12
    the entire surface. So it makes for a much
    13
    more uniform drying process which makes the
    14
    downstream processing much easier.
    15
    MEMBER RAO: I think you answered 4B
    16
    already.
    17
    MS. BENO: Yes, yes. Thank you.
    18
    MS. HODGE: Number five?
    19
    MS. BENO: Selection of the dryers.
    20
    One example of the inefficiencies created by
    21
    the current rule is that the most
    22
    appropriately sized equipment may not be
    23
    chosen. As I mentioned in the testimony, we
    24
    have small scale process trains and large

    42
    1
    scale process trains. Now, in the event that
    2
    the small scale process train would be
    3
    approaching its limit, we may be forced to
    4
    use the large scale process train to process
    5
    smaller batches than would normally be
    6
    processed in that particular process train.
    7
    So that is the main consideration in regards
    8
    to inefficiency of the scheduling that could
    9
    be influenced by the current rule. It's much
    10
    like flying a plane half full or running a
    11
    dishwasher half full, you are not utilizing
    12
    the full capacity of the equipment in that
    13
    particular area.
    14
    MR. RAO: In this regard, I didn't see
    15
    any information about the drying capacity of
    16
    these dryers. Are they all about the same or
    17
    each dryer is different.
    18
    MS. BENO: It has to do with the
    19
    processing suits that they are in. We have
    20
    one dryer in one processing suit, and we have
    21
    two dryers in another processing suit.
    22
    That's our large scale processing train
    23
    versus our small scale processing train. As
    24
    I mentioned, you can only run one product in

    43
    1
    a process train at any given time.
    2
    MEMBER RAO: Thank you.
    3
    MS. BENO: So there was one final
    4
    question regarding how we select which dryer
    5
    to use for a given campaign. And the
    6
    selection of dryers is mainly based on the
    7
    technology first. As I mentioned there is a
    8
    one to one relationship of which product goes
    9
    in which type of technology. Meaning a
    10
    tunnel dryer or a fluid bed dryer. The
    11
    second consideration would be the scale,
    12
    whether it's a large scale batch or a small
    13
    scale batch, and then the third consideration
    14
    is general availability; do we have more
    15
    products running in one size suit than the
    16
    other or is one of the suits down for
    17
    maintenance or cleaning. So those are the
    18
    critical factors that we consider when
    19
    scheduling the production in the dryers.
    20
    MEMBER RAO: Thank you.
    21
    MEMBER JOHNSON: The amount of VOM
    22
    produced is dependent upon the amount of
    23
    ethanol, use not on your choice of which
    24
    drying --

    44
    1
    MS. BENO: Absolutely because we're
    2
    going to be drying to the specification of
    3
    the product so we'll always be drying off the
    4
    same amount of VOM for a given product for a
    5
    given batch.
    6
    MS. HODGE: Thank you. Anything else?
    7
    MS. CROWLEY: Mr. Matoesian, have you
    8
    had any questions?
    9
    MR. MATOESIAN: No, not so far.
    10
    MS. CROWLEY: I've been keeping an eye
    11
    on you, but I just wanted to state it for the
    12
    record.
    13
    MS. HODGE: Let's move on to the
    14
    questions of the pre-filed testimony of
    15
    Mr. Wells.
    16
    MR. WELLS: I talked briefly earlier
    17
    about the two-year period. What has happened
    18
    is that there has been a change in philosophy
    19
    on the conceptual level in US EPA's
    20
    application of historical emissions.
    21
    The definition of historical
    22
    actual emissions that appears in the 2001
    23
    guidelines, the US EPA developed is the same
    24
    as the concept in prevention of significant

    45
    1
    deterioration, PSD, or non-attainment new
    2
    source review, netting that US EPA has
    3
    previously used and what was in place at the
    4
    time; that is , the two years immediately
    5
    preceding the action or another two year
    6
    period, if it's determined to be more
    7
    representative. There's been a lot of
    8
    problems historically in the determination of
    9
    whether a particular period is
    10
    representative, and the US EPA in 2002
    11
    changed the definition of actual emissions.
    12
    They defined a term "baseline actual
    13
    emissions" for the PSD and the non-attainment
    14
    new source review program. And what they
    15
    said was that you can use any 24-month period
    16
    in the preceding ten years. That assures
    17
    that you can look back far enough to see a
    18
    representative business cycle so that you can
    19
    see the periods when your normal fluctuation
    20
    of business would result in relatively higher
    21
    emissions. But at the same time it gives a
    22
    simple concrete basis to make that decision.
    23
    That was originally suggested to us in the
    24
    conversations that our attorneys had with

    46
    1
    IEPA and with US EPA. That was the
    2
    recommended interpretation at the time, and
    3
    as we understand it, US EPA guidance is now,
    4
    their guideline on the EIP process, which is
    5
    not a regulation. It is guidance, is being
    6
    interpreted differently to allow the use of
    7
    that two-year period as far back as ten
    8
    years. I'll also point you to the revised
    9
    Exhibit 3. If you notice, 1999 and 2000 were
    10
    the highest years. 1998 was actually lower
    11
    than the emissions in either 1999 or 2000.
    12
    So it is in fact a peak that we are talking
    13
    about rather than just a continuing decline.
    14
    MEMBER RAO: And, Mr. Wells, do you
    15
    have any specific US EPA publication or
    16
    memorandum that talks about this change in
    17
    their policy?
    18
    MR. WELLS: Well, the baseline actual
    19
    emissions were established in a federal
    20
    register notice amending the PSR rules at 67
    21
    Federal Register 80.186.
    22
    MEMBER JOHNSON: We, as good corporate
    23
    citizens, it's to your benefit to keep your
    24
    VOM emissions as low as possible, but what

    47
    1
    you want to be able to do, at least I take it
    2
    is, that the demand for whatever product you
    3
    are producing in 1999 and 2000 were to return
    4
    and you had to use the same drying system or
    5
    use the ethanol rather than water on that to
    6
    develop that or make that particular product,
    7
    you want to be covered so that you can do
    8
    that and fulfill the demand. And that's why
    9
    even though these VOM emissions are at least
    10
    twice as much as the next five years, that's
    11
    why you want to have that set as your
    12
    baseline?
    13
    MR. WELLS: Exactly.
    14
    MS. HODGE: And, again, just to note
    15
    for the record, that historical baseline is
    16
    being reduced by ten percent, you know, in
    17
    the limit that we're requesting.
    18
    MEMBER JOHNSON: And in fact, the
    19
    reduction from what it is now is
    20
    significantly more than that. If you ran all
    21
    of your dryers at capacity, you would produce
    22
    45 tons, and this site specific rule as
    23
    proposed reduces that by over 30 tons, right?
    24
    MEMBER RAO: Half.

    48
    1
    MR. WELLS: Over half, a little over
    2
    half.
    3
    MEMBER RAO: Thank you.
    4
    MR. WELLS: Question two, I think it
    5
    kind of follows question one.
    6
    MS. HODGE: We're good there. Shall
    7
    we move on the economic incentive program
    8
    guidance? Question No. 1. And this is
    9
    something that we thought might be more
    10
    properly addressed to the Illinois EPA.
    11
    MR. MATOESIAN: That's fine. Charles
    12
    Matoesian speaking. With me today I have
    13
    Mr. Yoginder Mohajan (Phonetic), who is an
    14
    engineer with the Illinois Environmental
    15
    Protection Agency, he is here to answer some
    16
    questions from the board. He is currently in
    17
    the air quality planning section of the
    18
    Bureau of Air and has prepared some answers
    19
    for these questions.
    20
    MS. CROWLEY: Would you swear him in?
    21
    YOGINDER MAHAJAN
    22 having been first duly sworn, was examined and
    23 testified as follows:
    24
    Question No. 1 on page three, the

    49
    1
    guidance states that the guidance applies if
    2
    state applies --
    3
    MS. CROWLEY: Off the record.
    4
    (Discussion off the record.)
    5
    MS. CROWLEY: Go back on the record.
    6
    MR. MAHAJAN: The answer to the
    7
    question, I spoke with the US EPA, Mr. Steve
    8
    Rosenthal. He told me that the option of the
    9
    EIP is not required. It is recommended. It
    10
    is nice if you have it adopted, but it's not
    11
    required and the agency's intention is not to
    12
    adopt it. It will deal with it on a case by
    13
    case basis.
    14
    Question No. 2, yes, the agency
    15
    has discussed this with the US EPA and
    16
    confirmed that this amendment is consistent
    17
    with the EIP guidelines.
    18
    No. 3, yes. And question No. 3B
    19
    is also no. Regarding emissions being
    20
    surplus is there any concern? No we don't
    21
    have any concern. It's discussed with the US
    22
    EPA, and they said that it is consistent with
    23
    the EIP guidelines.
    24
    MEMBER RAO: Thank you.

    50
    1
    MS. HODGE: Do you have any other
    2
    questions?
    3
    MEMBER RAO: There was one question
    4
    about the proposed amendment.
    5
    MS. HODGE: We're ready to move to
    6
    that.
    7
    MEMBER RAO: No follow-ups.
    8
    MS. CROWLEY: Do you have any
    9
    follow-ups for this.
    10
    MS. HODGE: No. So we'll move on to
    11
    the question on the proposed amendments,
    12
    question No. 1.
    13
    MR. WELLS: Yes. The only concern
    14
    that we had with the specification of the
    15
    equipment was that we not specify that --
    16
    28.480(b) now covers the entire facility,
    17
    more than just building AB16. We would not
    18
    have a problem if the specification were made
    19
    on the SSEC that we've been discussing today.
    20
    As far as specifically 218.480(b)(4), as far
    21
    as the general applicability of 218.480(b),
    22
    it's our understanding that still applies to
    23
    the facility, and it is possible that we
    24
    might find the need to install a fluid bed

    51
    1
    dryer in another building for a totally
    2
    unrelated manufacturing process.
    3
    MEMBER RAO: You are comfortable with
    4
    the way the rule is proposed now?
    5
    MR. WELLS: That's correct.
    6
    MEMBER RAO: I think that question was
    7
    triggered because the way 218.480(b) is now
    8
    currently written, Abbott's name is not
    9
    mentioned in that section at all. And I know
    10
    it's highly unlikely that somebody else would
    11
    set up shop with four dryers and give them
    12
    names and take advantage of this rule, but in
    13
    most of our site specific rules we have the
    14
    name of the company involved in it. So I
    15
    just wanted to know what your thoughts were
    16
    on it.
    17
    MR. WELLS: In terms of identifying
    18
    the company, I don't think we have any
    19
    objection to it. The drafting of the
    20
    original rule was before my time. I'm not
    21
    sure where the language came from, but that
    22
    wouldn't be a problem. Again, the only thing
    23
    we wanted to be sure was that it wasn't
    24
    defined specifically to cover building AB16,

    52
    1
    just to allow us the same flexibility in the
    2
    future.
    3
    MEMBER RAO: Okay.
    4
    MEMBER JOHNSON: The road is named
    5
    after you so --
    6
    MEMBER RAO: Thank you very much.
    7
    MS. HODGE: Thank you.
    8
    We have one more issue that we'd
    9
    like to address, and this deals with a
    10
    request that has been made by US EPA through
    11
    the Illinois EPA, and they had asked if we
    12
    could submit to them some of the supporting
    13
    emission calculations for the baseline years,
    14
    1999 and 2000. We've talked with IEPA about
    15
    how the emissions are calculated and US EPA
    16
    wants a little bit more information. We are
    17
    currently preparing that, and we will submit
    18
    additional information in response to that
    19
    request subject to CBI, confidential business
    20
    information requirements on that. So that
    21
    will be forthcoming, and I understand from
    22
    talking with counsel for IEPA, that you would
    23
    like to have some of that in this board's
    24
    record, that IEPA would like to have some of

    53
    1
    that in the Board's record.
    2
    MS. CROWLEY: I understand that.
    3
    Please if any of it is confidential business
    4
    information or trade secrets, that when it is
    5
    submitted that it is properly submitted with
    6
    a redacted copy, as well as the copy that you
    7
    would like to have protected so that there
    8
    isn't any problem with that.
    9
    MS. HODGE: We can do that, and we
    10
    will work with IEPA and Mr. Steve Rosenthal
    11
    at US EPA to make sure that everyone is
    12
    comfortable with what we submit.
    13
    With that, I don't have anything
    14
    else.
    15
    MR. MATOESIAN: We have nothing.
    16
    MS. CROWLEY: One little left over bit
    17
    was the motion to file the amendment, Exhibit
    18
    3, and the motion to amend the proposal
    19
    specifically as it regards proposed
    20
    218.480(b)(4) to reflect the change to the 90
    21
    percent baseline calculations. Do you have
    22
    any objection to that?
    23
    MR. MATOESIAN: No.
    24
    MS. CROWLEY: Thank you. That motion

    54
    1
    then is granted. Let's go off the record for
    2
    a moment.
    3
    (Discussion off the record.)
    4
    MS. CROWLEY: Back on the record. We
    5
    have had a brief discussion about what would
    6
    be a reasonable post-hearing comment period.
    7
    We have chosen May 1st as the close comment
    8
    period date subject to an extension if
    9
    necessary to allow completion of data
    10
    gathering for US EPA or if any other person
    11
    needs additional time. We specifically do
    12
    request that the agency file, even if short,
    13
    some comment on this record indicating their
    14
    view of whether this rule should or should
    15
    not be granted. If there is nothing else --
    16
    MR. MATOESIAN: We can say, the Agency
    17
    can state that it supports the petition.
    18
    MS. CROWLEY: Okay, fine. If there's
    19
    nothing else then, I thank you all for your
    20
    participation. The Board again thanks Abbott
    21
    for its patience in bearing with our
    22
    scheduling problems. We will try to render a
    23
    decision in an expedited fashion once the
    24
    record is closed. Again, thank you all very

    55
    1
    much.
    2 STATE OF ILLINOIS )
    ) SS.
    3 COUNTY OF COOK )
    4
    5
    I, DENISE ANDRAS, being a Certified
    6 Shorthand Reporter doing business in the City of Des
    7 Plaines, Illinois, County of Cook, certify that I
    8 reported in shorthand the proceedings had at the
    9 foregoing hearing of the above-entitled cause. And
    10 I certify that the foregoing is a true and correct
    11 transcript of all my shorthand notes so taken as
    12 aforesaid and contains all the proceedings had at
    13 the said meeting of the above-entitled cause.
    14
    15
    16
    ___________________________
    17
    DENISE Andras, CSR
    CSR NO. 084-003437
    18
    19
    20
    21
    22
    23
    24

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