Approval and Promulgation of Implementation Plans; Illinois

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IL147-1a, IL156-1a; FRL-5965-1]

Approval and Promulgation of Implementation Plans; Illinois

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: On January 23, 1996, and January 9, 1997, the State of

Illinois submitted to EPA two site-specific State Implementation Plan

(SIP) revision requests for Solar Corporation's (Solar) manufacturing

facility located in Libertyville, Lake County, Illinois. The January

23, 1996, request seeks to revise the State's Volatile Organic Material

(VOM) Reasonably Available Control Technology (RACT) requirements

applicable to certain Solar adhesive operations. The January 9, 1997,

request seeks to grant a temporary variance from VOM RACT requirements

applicable to Solar's automotive plastic parts coating operations. In

this action, EPA is approving the above requested SIP revisions through

a ``direct final rulemaking;'' the rationale for this approval is

discussed below.

DATES: This final rule is effective April 24, 1998 unless adverse

written comments are received by March 25, 1998. If the effective date

is delayed, timely notice will be published in the Federal Register.

ADDRESSES: Written comments can be mailed to: J. Elmer Bortzer, Chief,

Regulation Development Section, Air Programs Branch (AR-18J), Air and

Radiation Division, U.S. Environmental Protection Agency, 77 West

Jackson Boulevard, Chicago, Illinois, 60604.

Copies of the SIP revision request and Technical Support Document

(TSD) for this rulemaking action are available for inspection at the

following address: (It is recommended that you telephone Mark J.

Palermo at (312) 886-6082, before visiting the Region 5 office.) U.S.

Environmental Protection Agency, Region 5, Air and Radiation Division,

77 West Jackson Boulevard, Chicago, Illinois, 60604.

FOR FURTHER INFORMATION CONTACT: Mark J. Palermo, Environmental

Protection Specialist, Air Programs Branch (AR-18J) at (312) 886-6082.

SUPPLEMENTARY INFORMATION:

I. Background

On November 15, 1990, Congress enacted amendments to the 1977 Clean

Air Act (Act); Public Law 101-549, 104 Stat. 2399, codified at 42

U.S.C. 7401-7671q. Section 182(b)(2) of the Act requires States to

adopt RACT rules covering ``major sources'' not already covered by a

Control Techniques Guideline (CTG) for all areas classified moderate

nonattainment for ozone or above.1 The Chicago ozone

nonattainment area (Cook, DuPage, Kane, Lake, McHenry, Will Counties

and Aux Sable and Goose Lake Townships in Grundy County and Oswego

Township in Kendall County) is classified as ``severe'' nonattainment

for ozone, and therefore is subject to the Act's non-CTG RACT

requirement.

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\1\ A definition of RACT is cited in a General Preamble-

Supplement published at 44 FR at 53761 (September 17, 1979). RACT is

defined as the lowest emission limitation that a particular source

is capable of meeting by the application of control technology that

is reasonably available, considering technological and economic

feasibility. CTGs are documents published by EPA which contain

information on available air pollution control techniques and

provide recommendations on what the EPA considers the ``presumptive

norm'' for RACT. Sources which are not covered by a CTG are called

``non-CTG'' sources.

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Under section 182(d) of the Act, sources located in severe ozone

nonattainment areas are considered ``major sources'' if they have the

potential to emit 25 tons per year or more of VOM.2 Solar's

Libertyville facility has the potential to emit more than 25 tons of

VOM per year, and therefore is subject to RACT requirements.

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\2\ VOM, as defined by the State of Illinois, is identical to

``Volatile Organic Compounds'' (VOC), as defined by EPA.

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II. Solar Operations

Solar owns and operates a facility in Libertyville, Illinois which

produces custom-made, fabric covered and/or painted plastic decorative

components for manufacturers of automobiles and electronic home and

office products. The decorative components produced by Solar for the

home and office electronics industry include speaker grilles for

stereos and televisions, pressure-formed thermoplastic back enclosures

for large-screen and projection television sets, and other decorative

molded parts and fabric wrapped subassemblies. Solar's automotive

interior products include speaker grilles, vinyl- and fabric-clad door

trim components, injection molded decorative assemblies, seating trim

[[Page 8856]]

component, and electronic subassemblies.

III. Non-CTG Adhesives Adjusted Standard

A. Existing SIP Requirements

On October 21, 1993, and March 4, 1994, the State of Illinois

submitted RACT rules covering major non-CTG sources in the Chicago

severe ozone nonattainment area, which includes subparts PP, QQ, RR,

TT, and UU of Part 218 of the 35 Illinois Administrative Code (IAC), as

a revision to the Illinois SIP. The SIP revision was approved by EPA on

October 21, 1996 (61 FR at 54556). Prior to Illinois' non-CTG rule

adoption, the State's RACT rules did not apply to Solar because the

facility's emissions were below the rules' applicability threshold of

100 TPY or more of VOM. Pursuant to section 182(b), the State lowered

the applicability threshold to include as major sources all sources

with a potential to emit 25 TPY or more VOM. Solar, which had not been

affected by the 100 ton RACT rules, became subject to the 25 ton RACT

rules.

Among the non-CTG rule provisions Solar became subject to is

subpart PP, which contains VOM control requirements for miscellaneous

fabricated product manufacturing processes. Under subpart PP, Solar

would be required either to use adhesives which do not exceed 3.5

pounds of VOM per gallon (lbs VOM/gallon) as-applied, or to operate

emission capture and control techniques which achieve an overall

reduction in uncontrolled VOM emissions of at least 81 percent (%).

Subpart PP is based upon requirements promulgated under the Chicago VOC

Federal Implementation Plan (FIP). In developing the FIP, the EPA used

information from existing coating CTGs and the State and EPA's

regulatory experience to establish the 3.5 lbs VOM/gallon limitation

for non-CTG coating operations.

B. Solar Adjusted Standard

On February 28, 1995, Solar and the Illinois Environmental

Protection Agency (IEPA) filed a joint petition for an adjusted

standard with the Illinois Pollution Control Board (Board). The

adjusted standard petition requested that Illinois relax the stringency

of the VOM limit for Solar's adhesive application from 3.5 lbs VOM/

gallon as-applied, to 5.75 lbs VOM/gallon as-applied.

In its petition, Solar noted that the technical support for the

non-CTG limitation promulgated under the Chicago FIP and adopted by

Illinois did not take into account the necessary characteristics of

adhesives used to adhere fabric to plastic parts for the home

entertainment and auto industry, which is Solar's specific industry.

Further, Solar justified the rule relaxation based upon its own

technical support demonstrating that the 3.5 lbs VOM/limit is

technically and economically infeasible, and that a 5.75 lbs VOM/gallon

limit for its adhesive operations is RACT for the facility.

A public hearing on the adjusted standard petition was held on July

18, 1995, in Libertyville, Illinois. On July 20, 1995, the Board

adopted a Final Opinion and Order, AS 94-2, granting the adjusted

standard requested by Solar. The adjusted standard also became

effective on July 20, 1995. On August 14, 1995, the IEPA filed a motion

to modify the final Board Order. On September 1, 1995, Solar filed a

response to the IEPA's motion to modify. On September 7, 1995, the

Board adopted the IEPA's proposed changes to the final opinion, noting

that the language of the July 20, 1995, opinion would not be affected.

The IEPA formally submitted the adjusted standard for Solar on January

23, 1996, as a site-specific revision to the Illinois SIP for ozone.

C. Criteria for Evaluating Adjusted Standard

The EPA has identified VOC control levels in its CTGs and non-CTG

control evaluations that it presumes to constitute RACT for various

categories of sources. However, case-by-case RACT determinations may be

developed that differ from EPA's presumptive norm. The EPA will approve

these RACT determinations as long as a demonstration is made that they

satisfy the Act's RACT requirements based on adequate documentation of

the economic and technical circumstances of the particular sources

being regulated. To make this demonstration, it must be shown that the

current SIP requirements do not represent RACT because pollution

control technology necessary to reach the requirements is not and

cannot be expected to be reasonably available. The EPA will determine

on a case-by-case basis whether this demonstration has been made,

taking into account all the relevant facts and circumstances concerning

each case. A demonstration must be made that reasonable efforts were

taken to determine and adequately document the availability of

complying coatings or other kinds of controls, as appropriate. If it is

conclusively demonstrated that complying low-solvent coatings are

unavailable, the EPA would consider an alternative RACT determination

based on the lowest level of VOM control technically and economically

feasible for the facility.

D. Solar's Efforts To Meet the Non-CTG SIP Requirement

To comply with the 3.5 lbs VOM/gallon non-CTG SIP requirement,

Solar investigated reformulation of adhesives, water-based adhesives,

alternatives to adhesives, and catalytic oxidation add-on control. In

testing adhesive technologies, Solar attempted to meet the 3.5 lbs VOM/

gallon SIP limit while meeting customer aesthetic and environmental

performance specifications. Solar's customers require the company to

conduct various tests on its products to determine whether the fabric

bonds withstand a wide variety of temperatures and humidities which the

products will be subject to during shipment and actual use.

Solar's adhesive supplier attempted to reformulate the adhesives it

sells to Solar to bring the adhesives into compliance, and was able to

increase the solids content of Solar's primary adhesive from 20% to

30%, thereby reducing the VOM content from 6.02 lbs VOM/gallon to 5.49

lbs VOM/gallon. The supplier, however, determined that further

reduction could not be achieved without increasing the solids content

to 50%, which would result in an adhesive so viscous that it could not

be applied with either a manual gun or auto-spray. Solar also

investigated partially reformulating Solar's primary adhesive using

acetone, which resulted in the adhesive drying too fast before the

fabric could be properly adhered to the plastic. In addition to trying

adhesive reformulation, Solar and its adhesive supplier conducted major

test trials of several two-component water-based adhesives. However,

the testing showed that the adhesives set too quickly, which was

unacceptable given that Solar's process requires repeated repositioning

of fabric to ensure the proper tautness of the fabric on each plastic

part.

The January 1996 State submittal also provides documentation of

Solar's contacts with two other adhesive suppliers to determine whether

they could offer low-emitting adhesives to Solar which would both meet

the 3.5 lbs VOM/gallon limit, as well as meet the performance

specifications of Solar's customers. However, according to the State

submittal, these suppliers did not offer adhesives which would meet the

performance specifications of Solar's

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customers in the majority of its adhesive operations.

After EPA received the January 1996 submittal, EPA requested that

IEPA and Solar analyze whether Solar can use the adhesives or

techniques of two California companies in compliance with South Coast

Air Quality Management District adhesive limits, James B. Lansing (JBL)

and Fleetwood Motor Homes (Fleetwood). IEPA submitted subsequent

documentation on July 23, 1997, indicating that Solar cannot use the

adhesives used at the California JBL and Fleetwood plants because the

plants have distinguishable products and processes involving different

adhesive bonding requirements than that of Solar.

Besides seeking compliant adhesives, Solar has tried adhesiveless

processes as an alternative to adhesives by conducting test trials with

sonic welding and use of a heat plate. Solar was unsuccessful with

sonic welding because of the curved surfaces of many of its plastic

components. However, Solar was somewhat successful with the heat plate

technique and now uses a heat plate to bond cloth to about 20% of the

plastic parts it produces. Yet, Solar cannot use the hot plate

technique in more operations because for this technique to be feasible,

the plastic part must have sufficient cross section to withstand the

heat generated in bonding.

As for add-on controls, Solar investigated catalytic oxidation as a

means of achieving 81% capture and control of VOM emission from the

manual spray booths and auto-spray machines. Radian Corporation's

consultants examined Solar's operations estimated costs for catalytic

oxidation control to be $25,000 and $10,000 per ton for the manual

spray guns and auto-spray machines, respectively. Solar contends that

these costs are economically unreasonable for the facility.

E. EPA Analysis of Solar's Adjusted Standard

Based on the information and technical support IEPA provided in its

submittal, the EPA finds that the non-CTG SIP requirements are not

technically or economically feasible for the Solar Libertyville

facility's adhesive process, and that a limit of 5.75 lbs VOM/gallon

limit on adhesive content is RACT for the facility. For a more detailed

analysis of this SIP revision, please refer to the TSD available from

the Region 5 office listed above.

IV. Variance for Automotive Plastic Parts Coating Limit

A. Existing SIP Requirements

On October 26, 1995, EPA approved Illinois RACT regulations

covering plastic parts coating operations in the Chicago ozone

nonattainment area. The regulations establish VOM emission limitations

which can be met in one of four ways: (1) use of coatings which meet a

specified VOM content limit (218.204(n) and (o)); (2) meet a daily-

weighted average limit for those coating lines that apply coatings from

the same coating category (218.205(g)); (3) use of an add-on capture

system and control device which meets an 81% VOM capture and control

efficiency (218.207(i)); or, (4) meet a cross-line averaging limit

(218.212).

Solar through its variance petition seeks temporary relief from

218.204(n)(1)(B)(i), which requires operations that apply air dried

color coating to automotive interior plastic parts to meet a VOM

content limit of 0.38 kg/l or 3.2 lbs/gallon, by March 15, 1996.

B. Solar Variance

On May 22, 1996, Solar filed its petition for variance from 35 IAC

218.204(n)(1)(B)(i) with the Board. On July 15, 1996, the IEPA filed

its recommendation of support for the variance. A public hearing on the

variance petition was held on August 9, 1996, in Libertyville,

Illinois. On September 5, 1996, the Board adopted a Final Opinion and

Order, PCB 96-239, granting the variance requested by Solar. On

September 13, 1996, Solar signed a certificate of acceptance, which

binds Solar to all terms and conditions of the granted variance. The

IEPA formally submitted the variance for Solar on January 9, 1997, as a

site-specific revision to the Illinois SIP for ozone.

The variance was granted because Solar presented adequate proof to

the Board that immediate compliance with section 218.204(n)(1)(B)(i)

would result in an arbitrary or unreasonable hardship which outweighs

the public interest in attaining immediate compliance with regulations

designed to protect the public. Such a burden of proof is required by

Illinois law before a variance can be granted.

As of the date of the Illinois submittal, Solar replaced

approximately 98% of its coatings to water-based products. However,

Solar's coating supplier needed extra time to reformulate the remaining

paints to water-based so as to comply with the State's VOM content

requirement. Also, additional time was needed for any unanticipated

delays and to ensure that the water-based coatings meet customer

specifications.

Solar indicated in its variance petition that it hired a consultant

to investigate the use of add-on controls to comply with the State's

RACT requirements. The consultant studied carbon adsorbers, thermal and

catalytic afterburners, as well as condensers, and estimated that the

cost to install capture and control equipment at the spray booths would

be more than $25,000 per ton. Solar contends that the use of any add-on

controls is economically unreasonable because it has reformulated 98%

of its paints, and only 134.25 gallons of non-compliant paint will be

used.

IEPA agrees with Solar's position that daily-weighted averaging is

not an appropriate option for Solar because Solar's coating lines are

subject to different VOM content limits. As for cross-line averaging,

this compliance option would require an operational change to pre-

existing coating lines. Since Solar has committed to reformulating its

paints as a means to achieve compliance, the IEPA contends in the

submittal that requiring Solar to make an operation change for the five

remaining non-compliant paints is not an effective or reasonable

alternative. The IEPA further notes that these options are not

appropriate for Solar because Solar is seeking temporary, not permanent

relief.

The variance, Solar's use of non-compliant interior automotive

coating is limited to the 134.25 gallons of the above coatings Solar

has in stock. The variance indicates the vendor number, VOM content,

and gallons allowed to be used for each of the five non-compliant

coatings in stock. Solar is not allowed to use any other non-compliant

coatings under the variance. Solar is also limited to a total of 0.67

tons of VOM emissions from these compliant coatings over a 12 month

period beginning May 22, 1996. The variance terminates on the earlier

of two dates: May 22, 1997, or when the water-based interior automotive

coatings are available and approved as substitutes for the non-

compliant coatings specified in the variance.

The variance provides that Solar shall send monthly status reports

to IEPA providing various information regarding the non-compliant

interior automotive coatings. Once a water-based automotive interior

coating is available and approved by Solar's customers as a substitute

for a coating covered by the variance, the variance for that coating no

longer applies and the coating becomes subject to 35 IAC

218.204(n)(l)(B)(i). The variance

[[Page 8858]]

requires Solar to notify the IEPA within 10 days after any non-

compliant interior automotive coating subject to the variance is

converted to a water-based coating is approved and available to use.

C. EPA Analysis of Solar Variance

Based on the information provided in the SIP submittal, the EPA

finds that the variance for Solar is justified, and the compliance

milestone provisions required by the variance represent a reasonable

approach to bringing the Solar facility into compliance with the

automotive plastic parts coating limit in a timely manner. Therefore,

the EPA finds this SIP submittal approvable.

V. Final Action

The EPA is approving, through direct final rulemaking action,

Illinois' January 23, 1996, site-specific SIP revision for Solar's

Libertyville, Illinois facility, which relaxes the VOM content limit

required for its adhesive operations from 3.5 lbs VOM/gallon to 5.75

lbs VOM/gallon. The EPA is also approving, through direct final

rulemaking action, Illinois' January 9, 1997, site-specific SIP

revision which provides a temporary variance from the State's plastic

parts coating rule for Solar's Libertyville facility.

The EPA is publishing this action without prior proposal because

EPA views this as a noncontroversial revision and anticipates no

adverse comments. However, in a separate document in this Federal

Register publication, the EPA is proposing to approve the SIP revision

should specified written adverse or critical comments be filed. This

rule will become effective without further notice unless the Agency

receives relevant adverse written comment on the parallel notice of

proposed rulemaking (published in the proposed rules section of this

Federal Register), within 30 days of today's document. Should the

Agency receive such comments, it will publish a document informing the

public that this rule did not take effect. Any parties interested in

commenting on this action should do so at this time.

Nothing in this action should be construed as permitting, allowing

or establishing a precedent for any future request for revision to any

SIP. Each request for revision to the SIP shall be considered

separately in light of specific technical, economic, and environmental

factors and in relation to relevant statutory and regulatory

requirements.

VI. Administrative Requirements

A. Executive Order 12866

The Office of Management and Budget has exempted this regulatory

action from Executive Order 12866 review.

B. Regulatory Flexibility

Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA

must prepare a regulatory flexibility analysis assessing the impact of

any proposed or final rule on small entities. 5 U.S.C. 603 and 604.

Alternatively, EPA may certify that the rule will not have a

significant impact on a substantial number of small entities. Small

entities include small businesses, small not-for-profit enterprises,

and government entities with jurisdiction over populations of less than

50,000.

SIP approvals under section 110 and subchapter I, part D of the Act

do not create any new requirements, but simply approve requirements

that the State is already imposing. Therefore, because the Federal SIP

approval does not impose any new requirements, the Administrator

certifies that it does not have a significant impact on any small

entities affected. Moreover, due to the nature of the Federal-State

relationship under the Act, preparation of a flexibility analysis would

constitute Federal inquiry into the economic reasonableness of the

State action. The Clean Air Act forbids EPA to base its actions

concerning SIPs on such grounds. Union Electric Co. v. EPA., 427 U.S.

246, 256-66 (1976); 42 U.S.C. 7410(a)(2).

C. Unfunded Mandates

Under Section 202 of the Unfunded Mandates Reform Act of 1995,

signed into law on March 22, 1995, EPA must undertake various actions

in association with any proposed or final rule that includes a Federal

mandate that may result in estimated costs to state, local, or tribal

governments in the aggregate; or to the private sector, of $100 million

or more. This Federal action approves pre-existing requirements under

state or local law, and imposes no new requirements. Accordingly, no

additional costs to state, local, or tribal governments, or the private

sector, result from this action.

D. Submission to Congress and the Comptroller General

The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the

Small Business Regulatory Enforcement Fairness Act of 1996, generally

provides that before a rule may take effect, the agency promulgating

the rule must submit a rule report, which includes a copy of the rule,

to each House of the Congress and to the Comptroller General of the

United States. Section 804, however, exempts from section 801 the

following types of rules: rules of particular applicability; rules

relating to agency management or personnel; and rules of agency

organization, procedure, or practice that do not substantially affect

the rights or obligations of non-agency parties. 5 U.S.C. 804(3). EPA

is not required to submit a rule report regarding today's action under

section 801 because this is a rule of particular applicability.

E. Petitions for Judicial Review

Under section 307(b)(1) of the Act, petitions for judicial review

of this action must be filed in the United States Court of Appeals for

the appropriate circuit by April 24, 1998. Filing a petition for

reconsideration by the Administrator of this final rule does not affect

the finality of this rule for the purposes of judicial review nor does

it extend the time within which a petition for judicial review may be

filed, and shall not postpone the effectiveness of such rule or action.

This action may not be challenged later in proceedings to enforce its

requirements. (See Section 307(b)(2)).

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Incorporation by reference, Intergovernmental relations, Ozone,

Reporting and recordkeeping requirements.

Dated: January 29, 1998.

David A. Ullrich,

Acting Regional Administrator.

For the reasons stated in the preamble, part 52, chapter I, title

40 of the Code of Federal Regulations is amended as follows:

PART 52--[AMENDED]

1. The authority citation for part 52 continues to read as follows:

Authority: 42 U.S.C. 7401 et seq.

Subpart O--Illinois

2. Section 52.720 is amended by adding paragraph (c)(135) to read

as follows:

Sec. 52.720 Identification of plan.

* * * * *

(c) * * *

(135) On January 23, 1996, Illinois submitted a site-specific

revision to the State Implementation Plan which relaxes the volatile

organic material (VOM) content limit for fabricated

[[Page 8859]]

product adhesive operations at Solar Corporation's Libertyville,

Illinois facility from 3.5 pounds VOM per gallon to 5.75 pounds VOM per

gallon.

(i) Incorporation by reference. July 20, 1995, Opinion and Order of

the Illinois Pollution Control Board, AS 94-2, effective July 20, 1995.

3. Section 52.720 is amended by adding paragraph (c)(136) to read

as follows:

Sec. 52.720 Identification of plan.

* * * * *

(c) * * *

(136) On January 9, 1997, Illinois submitted a site-specific

revision to the State Implementation Plan which grants a temporary

variance from certain automotive plastic parts coating volatile organic

material requirements at Solar Corporation's Libertyville, Illinois

facility.

(i) Incorporation by reference. September 5, 1996, Opinion and

Order of the Illinois Pollution Control Board, PCB 96-239, effective

September 13, 1996. Certificate of Acceptance signed September 13,

1996.

[FR Doc. 98-4378 Filed 2-20-98; 8:45 am]

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