CHATTANOOGA-HAMIL TON COUNTY 

AIR POLLUTION CONTROL BOARD 

June 30, 2014 

MINUTES 

Chairman Steve Meyer called the meeting to order and noted an affidavit had been provided 

indicating that adequate public notice of the meeting had been published in the Chattanooga Times 

Free Press. A quorum of the membership was present. 

Mr. Meyer stated the minutes of the June 4, 2013 Board meeting had been provided to 

Board members and asked if there were additions, corrections, or deletions to the minutes. A 

motion to approve the minutes as presented was then made by Mr. Lynch and seconded by Mr. 

Carmichael. The motion passed with no negative votes cast. 

The agenda was presented and approved. 

DIRECTOR'S REPORT 

Expense Summary. Mr. Colby informed the Board that the Expense Summary for May had 

been provided. He stated the report shows that at the end of May the budget was approximately 

92% expended and the fiscal year was 91% complete. He then reviewed expenditures in several of 

the line items. He noted that the Salary line item included the payment of accumulated personal 

leave to Errol Reksten and Pam Hicks who have both retired. The Materials & Supplies line item, 

which is over budget, includes repairs to air monitoring equipment. The increases in both the 

Vehicle Expense and Insurance line items were attributed respectively to increases in fuel cost and 

repairs and an increase in premiums. (A copy of the summary is included as a part of these minutes 

and is attached to the original copy of these minutes.) 

Certificate of Exemption Approval. The Tennessee Air Pollution Control Board (State Board) 

approved the local program's Certificate of Exemption at its May meeting. Mr. Colby explained that 

the Certificate allows the local program to operate without State supervision. The local program is 

required to adopt and enforce rules which are no less stringent that the State in order to receive the 

Certificate. The State Board approved the Hamilton County Certificate for the period 2014-2016 

with one deficiency noted. 

The State has adopted a requirement that all new permits, permit renewals and permit 

modifications must be advertised in a paper of general circulation with an opportunity for public 

comment. The State has given the local program until July 2015 to prepare a local rule as stringent 

as the State's rule. Beginning July 1, 2014, the Bureau will implement the procedure and will 

prepare a rule for the Board's review and recommendation to the governing bodies. 

(A copy of the Certificate of Exemption is included as a part of these minutes and is 

attached to the original copy of these minutes.) 

Air Quality Update. Mr. Colby reported that Hamilton County air quality readings have been 

recorded in compliance with all current health based standards. He stated the current standard for 

ozone is 76 parts per billion (ppb) determined by a 3-year average of the 41

h highest values (referred 

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to as design value) at each monitor. Hamilton County's design value for the reporting period 2011-

2013 is 72. During the current ozone season (March 1- October 31), there have been no 

exceedances of the 75 ppb standard and the highest value recorded was 67 ppb. 

The current annual standard for fine particles (PM2.5) is 12 micrograms per cubic meter of air 

(1Jg/m3

) determined by the weighted annual mean values recorded at each monitor. The 2013 

weighted annual mean at the three monitors located in Hamilton County is 9.3 1Jg/m3 or lower. The 

2013 weighted annual mean at the monitor located in Rossville Georgia which is included in our 

region for purposes of attainment/nonattainment determinations is 10 1Jg/m3

. 

Mr. Colby also told the Board that Hamilton County is also meeting the daily standard for fine 

particles (PM2.5). The current standard is 35 1Jg/m3 and the values for the four monitors in our region 

are 23 1Jg/m3 or less. 

Asbestos Program. Mr. Colby stated there have been improvements made in the Bureau's 

asbestos program. He said that Bureau Investigator John Schultz is administering the program and 

has significantly increased inspections of projects. 

Staff Resignations. Copies of letters of resignation were provided to the Board from two 

employees. Engineering Manager Errol Reksten retired effective November 1, 2013. The Bureau's 

Engineering Secretary I Receptionist Pam Hicks retired effective May 16, 2014. Mr. Colby noted 

that as in the past, the Bureau will work with City Personnel Department to fill the positions. 

Staff Recognition. Mr. Colby ended his report by giving special recognition to members of 

the engineering department, Alan Frazier, Cynthia McDaniel and Sydney Spencer for their work on 

preparing the Request for Redesignation which the Board will consider later in the meeting. He 

estimated consultant fees to prepare the document would have been $250,000 if these staff 

members had not prepared the submittal. 

ADMINISTRATIVE COMMITTEE REPORT AND SALARIES AND LONGEVITY PAY FOR FY 2015 

Chairman Meyer stated the Administrative Committee met on April 30, 2014 to review the 

proposed budget for 2014-2015 (FY 2015). The Committee approved the proposed budget and 

recommended its approval by the Board. (A copy of the Administrative Committee Report including 

the FY 2015 Proposed Budget is attached to the original copy of these minutes and is included as a 

part of these minutes.) 

The FY 2015 budget of $1,410,576 represents a decrease of $15,817 from the FY 2014 

budget request with the same level of funding from the City and County as was received following 

last year's request. The budget presented also represents an increase of $1,916 more that the 

income projections for the current fiscal year. Mr. Colby stated the Bureau is expecting a decrease 

in funding from EPA, although that is subject to change as Congress considers the federal budget 

later in the year. The Bureau is also projecting about a 17% decrease in Part 70 emission fees and 

a 10.9% increase in non-Part 70 permits fees. 

Mr. Colby noted the Board has historically followed the City's process in regards to salary 

and benefits. As in FY 2014, Mr. Colby stated the proposed budget was prepared with no salary 

increases since it was not known what the City would do with their pay plan in FY 2015. In FY 2014 

the Board followed the City's pay plan and granted salary increases of 3% for Bureau employees 

and longevity pay of $75 per year of service, for employees with more than 5 years of continuous 

service, up to a maximum of $2,250. At the time the Administrative Committee met the City had not 

Board Meeting-6/30/2014 Page 2 of7 
completed the budgeting process and the Administrative Committee recommended that the Board 

authorize longevity pay for Bureau employees consistent with what the City's ultimately did with their 

plan. The salary and fringe benefit line item in the proposed budget includes longevity pay of $75. 

The City Council has now completed the FY 2015 budget and has revised its pay plan to 

grant a 1.5% increase for non-sworn personnel and the payment of longevity pay for employees with 

more than 5 years of continuous service of $75 per year of service, up to a maximum of $2,250. 

Mr. Colby stated proposed Resolution 0614-01 with respect to Bureau salaries and 

Resolution 0614-02 with respect to longevity pay for FY 15 have been prepared consistent with the 

City pay plan. 

A motion to accept and adopt the recommendations of the Administrative Committee and Mr. 

Colby as presented and to approve Resolutions 0614-02 and 0614-03 was made by Mr. Carmichael 

and seconded by Mr. Howard. The motion was approved. (Copies of Resolution 0613-01 and 0613-

02 are attached to these minutes and are included as a part of these minutes.) 

PERSONNEL MATTER- STEVE LANGSTON 

Mr. Colby then recommended approval of a request by Instrument Technician Steve 

Langston for leave for armed forces reserve duty. Mr. Langston is a member of the U.S. Navy 

Reserves and will be on active duty in the Persian Gulf from July 3, 2014 through November 26, 

2014. Mr. Colby stated the Bureau's policy manual provides that personal leave for more than fifty 

(50) consecutive working days must be approved in advance by the Board. 

The request by Mr. Langston includes 20 days of paid military leave from the Bureau (July 3-

30, 2014); 6 days of personal leave (July 31-August 7, 2014); and leave without pay from August 8-

November 26, 2014. 

In response to questions from the Board Mr. Colby stated the other members of the air 

monitoring department will cover Mr. Langston's responsibilities but he noted additional temporary 

help may be needed. A motion to approve Mr. Langston's request and to approve his leave as 

outlined was made by Dr. Tucker and seconded by Mr. Carmichael. The motion was approved with 

no negative votes cast. (A copy of Mr. Langston's request and his Military Orders are attached to 

these minutes and are included as a part of these minutes.) 

BUREAU LEASE EXTENSION 

Mr. Colby reported that the current lease from Blue Flame Realty Partners, LLC for Bureau 

office space expires in August 2014. The lease provides for a ten (1 0) year renewal option following 

the original 1 0-year lease. Under the terms of the current lease, with its Consumer Price Index 

escalator clause, the annual rent for the 2014-2016 period would increase from $103,046 to 

$131,356 (a 27.5% increase). Following negotiations with Blue Flame, the Board has been offered 

the option to amend the lease and to extend the lease at an annual rate for the first year of 

$102,000 ($8,500 per month) beginning September 1, 2014, with an annual increase of 3.5% each 

year thereafter till the expiration of the lease on August 31, 2024. Also, Mr. Colby stated the 

proposed lease amendment allows for a 12-month termination clause should there be a change in 

ownership of the building. Blue Flame has indicated they do not foresee a change in ownership. 

Board Meeting-6/30/2014 Page 3 of7 
A motion to approve the First Amendment to Lease, which was provided to the Board, and to 

authorize the Board Chairman to execute the Amendment was made by Mr. Howard and seconded 

by Mr. Lynch. The motion was approved with no negative votes cast. (A copy of the First 

Amendment to Lease is attached to the minutes and is included as a part of these minutes.) 

PART 70 PERMITS 

Mr. Colby told the Board that an opportunity for public comment on several Part 70 permits 

was published in the Chattanooga Times Free Press and on-line at Chattanooga. com and 

APCB.org. He noted that only federally-enforceable certificates of operation ("synthetic minor" 

permits") are required to go through the public hearing process. All other permits must be the 

subject of a public notice and comment period, but a public hearing must be held only if such a 

hearing requested in writing. The following Part 70 permit actions were advertised and no 

comments or requests for hearing were received. 

ASTEC Industries, Inc., 4101 Jerome Ave., Chattanooga, TN 37407, which manufactures 

asphalt plants and burner units, soil remediation units, and asphalt emulsion plant 

components has applied for a significant modification of its Part 70 operating permit. The 

proposed modification involves an increase in allowable fuel usage for Production Burner 

Testing, Emission Unit 003. The facility has requested an increase in natural gas usage 

from 2.5 million cubic feet per year to 10.6 million cubic feet per year and an increase in 

usage of #2 fuel oil from 17,400 gallons per year to 18,000 gallons per year. Due to a 

correction in the emission factors used to calculate emissions from Production Burner 

Testing, this modification only involves a 0.45 tons per year increase in allowable emissions 

of volatile organic compounds (VOCs). (The Public Information File for ASTEC Industries, 

Inc. was entered into the record and marked as Exhibit 1.) 

Volkswagen Group of America Chattanooga Operations, LLC, 8001 Volkswagen Drive, 

Chattanooga, TN 37 416, which operates an automotive manufacturing facility, has 

submitted an application for a Part 70 operating permit. The source was previously issued a 

Prevention of Significant Deterioration (PSD) permit to construct and initially operate the 

facility. There is no increase in emissions associated with this proposed permit. (The Public 

Information File for Volkswagen Group of America Chattanooga Operations, LLC was 

entered into the record and marked as Exhibit 2.) 

City of Chattanooga Summit Landfill, Woodland Drive, Chattanooga, TN 37 416, a closed 

municipal solid waste landfill, has submitted an application for renewal of its Part 70 

operating permit. A Part 70 permit has previously been issued for the facility. There are no 

changes in emissions involved in this action. (The Public Information File for City of 

Chattanooga Summit Landfill was entered into the record and marked as Exhibit 3.) 

Rock-Tenn Converting Company, 701 Manufacturers Road, Chattanooga, TN 37405-3703, 

which manufactures recycled paperboard, has submitted an application for renewal of its 

Part 70 operating permit. There are no changes in emissions involved in this action. (The 

Public Information File for Rock-Tenn Converting Company was entered into the record and 

marked as Exhibit 4.) 

A motion to authorize the Director to issue these permits was made by Mr. Howard and 

seconded by Mr. Lynch. The motion was approved with no negative votes cast. 

Board Meeting-6/30/2014 Page 4 of7 
MOTION TO TERMINATE CONSENT DECREE -INVISTA S.a r.l. 

This agenda item was present by Board Counsel Josiah Baker. Mr. Baker stated lnvista has 

requested that a motion be filed to terminate the Consent Decree as it applies to lnvista's 

Chattanooga facility. Mr. Baker provided the Board members a Briefing Pamphlet which detailed the 

provisions of the original Consent Decree, the remedial actions that had been taken and the penalty 

provisions of the Consent Decree. (A copy of Mr. Baker's Briefing Pamphlet is attached to these 

minutes and is included as a part of these minutes.) 

The Consent Decree came about as a result of an environmental audit done by lnvista when 

lnvista purchased Dupont. The audit identified problems at several locations including the facility in 

Chattanooga. lnvista reported the problems to EPA and a global consent decree was prepared. At 

its July 9, 2009 Board meeting, the Board authorized Mr. Baker to approve the proposed Consent 

Decree and to join with the U.S. Department of Justice in lodging the Decree. Mr. Baker noted that 

under the terms of the Consent Decree, lnvista agreed to pay a $1.7 million civil penalty and to 

spend up to an estimated $500 million to correct the self-reported environmental violations. 

Mr. Baker reported to the Board that lnvista has prepared a Motion to be filed to terminate 

the Consent Decree and has requested the Board approval that it be filed as an "unopposed" 

motion. Mr. Baker stated lnvista has accomplished all that was required of it and has done more 

than was required of it at the Chattanooga facility. He explained that lnvista paid a $100,000 civil 

penalty to the Board and has taken remedial action to correct the problems identified. Mr. Baker 

noted that the civil penalty was divided between the City of Chattanooga and Hamilton County on 

the basis of the percentage funding of the local program and was not credited to the Board's budget. 

The remedial actions taken by lnvista at the Chattanooga site included an investment of $8.9 million 

to install 2 new gas-fired boilers, and $633,000 on installation of a new monitoring system. 

Mr. Baker recommended that Board approve the filing of the Unopposed Motion to 

Terminate Consent Decree with Respect to the Chattanooga Facility and to authorize him, as Board 

Counsel to sign the Motion. A motion to approve Mr. Baker's recommendation was made by Mr. 

Carmichael and seconded by Mr. Howard. The motion was approved with no negative votes cast. 

PUBLIC HEARING 

Chairman Meyer then opened the public hearing for the Synthetic Minor Permit for ALSTOM 

Power, Inc. and for the PM2.5 Redesignation Request. A court reporter was present and a transcript 

of the public hearing was prepared. Therefore only a brief summary appears here. A copy of the 

transcript is included as a part of these minutes and is attached to the original copy of these 

minutes. 

Synthetic Minor Permit- ALSTOM Power, Inc. Mr. Colby stated ALSTOM Power, Inc., 

located at 1119 Riverfront Parkway, Chattanooga, TN 37 402, has made application for federally 

enforceable certificates of operation, also referred to as a synthetic minor permit. He explained that 

ALSTOM has operated for several years as a major source under Part 70 Permit No. 47-065-0690 

due to emission levels of volatile organic compounds (VOCs) and Hazardous Air Pollutants (HAPs). 

The facility has reformulated their coatings which has resulted in lower emissions of VOCs and 

HAPs. The lower emissions will allow the facility to operate below major source status thresholds. 

The notice of the public comment period and public hearing was published on May 23, 2014 

in the Chattanooga News Free Press and on-line at Chattanoogan.com and APCB.org. No 

comments were received on the proposed permit prior to the meeting and no members of the 

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audience made comments. (The Public Information File for ALSTOM Power, Inc. was entered into 

the record and marked as Exhibit 5.) 

A motion to approve the proposed Synthetic Minor Permit and to authorize the Director to 

issue the permit after completion of EPA's review was made by Dr. Tucker and seconded by Mr. 

Carmichael. The motion was approved with no negative votes cast. (A copy of Resolution 614-03 

is included as a part of these minutes and is attached to the original copy of these minutes.) 

PM2.5 Redesignation Request. Mr. Colby stated the Bureau proposes amendments to 

Hamilton County's portion of Tennessee's State Implementation Plan (SIP). The proposed State 

Implementation Plan revision includes the Bureau's request under the Clean Air Act that the 

Chattanooga, TN/GA/AL annual PM2.s (fine particulate matter) nonattainment area be redesignated 

from non-attainment to attainment with respect to the 1997 National Ambient Air Quality Standard 

(NAAQS) for PM2.

5 as well as the Bureau's plan to maintain attainment of the 1997 annual PM2.5, 

standard in the Chattanooga, TN/GA/AL area. Additionally, the Bureau proposes an official 

withdrawal of the previously approved PM2.5 attainment demonstration SIP submitted to US EPA 

since the ambient air quality standard for the 1997 PM2.5 standard is being met. US EPA has 

requested withdrawal of that previous submittal. Mr. Colby requested approval from the Board to 

request that withdrawal once EPA approves the redesignation request. 

Notice of the public hearing and the public comment period was published on May 24, 2014 

in the Chattanooga News Free Press and on-line at Chattanoogan.com and APCB.org. (The Public 

Information File for the PM2.s Redesignation Request was entered into the record and marked as 

Exhibit 6.) 

One written comment was received on the proposal. Mr. Colby stated the comment was 

from U.S. EPA Region 4. He then read the comments made by EPA and gave the Bureau's 

responses. A copy of EPA's comments and the Bureau's responses are included as a part of these 

minutes and are attached to the original copy of the minutes. 

The first comment from EPA was a request that text be added in the Maintenance 

Demonstration portion of the proposal to further discuss the status of the permits at Caraustar Mill 

Group, Inc. (doing business as Chattanooga Paperboard). The facility ceased operations on July 

22, 2008; and, EPA noted that because no emissions were being used for boilers for years after 

2008 additional clarification should be added. Mr. Colby stated additional text has been added to 

indicate that the operating permits for Chattanooga Paperboard were withdrawn after all operations 

at the plant ceased. 

The second comment requested that emissions from PM2-5 point sources be added to 

Appendix F. Mr. Colby stated that Appendix F contains only S02 and NOx emissions from Hamilton 

County point sources and are that data is used in Tables 2-3 and 2-4 for comparison to annual 

emissions of S02 and NOx from power plants in nearby counties. No such comparison to PM2.s 

emissions is made or warranted. Therefore no change to Appendix F is necessary. 

The next comment was a request by EPA that Appendix H be revised to include titles, data 

units and a description of how the data was used in the development of emissions inventories. Mr. 

Colby stated the Bureau has made the changes as suggested by EPA and has also revised 

Appendix K to included titles, data units and a calculation methodology for the calculation of area 

source emissions. 

The final comment from EPA was that Appendix J be revised to include additional textual 

narratives for aircraft and marine vessels and to explain how port emissions differ from underway 

Board Meeting-6/30/2014 Page 6 of7 
em1ss1ons. The comment also requested an explanation of how data is updated, projected or 

developed from 2005 to 2007 as used in the State Implementation Plan Narrative. Mr. Colby stated 

text was added to explain that emissions data in Appendix J for aircraft, marine and railroad sources 

were determined by the U.S. EPA Also as requested, text was added to indicate types and sources 

of data that were used by the U.S. EPA as the basis for emissions from marine vessels in order to 

show the difference between the "port" and "underway" emission categories. Furthermore, although 

not requested, text was also added to this paragraph to indicate types and sources of data that were 

used as the basis for emissions from both aircraft and railroad sources. 

A motion was made by Mr. Carmichael and was seconded by Mr. Lynch to approve the draft 

Redesignation Request and Maintenance Plan, including the revisions discussed and to authorize 

the Bureau Director to submit that to the Tennessee Air Pollution Control Board for consideration 

and approval and to send that on to U.S. EPA Region 4 for action to redesignate Hamilton County. 

The motion further authorized the Bureau Director to withdraw the previous State Implementation 

Plan submittal for PM2-5 nonattainment once EPA approves the current submittal. 

There being no further business to come before the Board, the meeting was adjourned. 

Submitted by: 

Bob Howard, Secretary 

Approved on behalf of the Board by: 

Steve Meyer, Chairman 

Date Approved 

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