— — • 

# OAR Box 1477 Prepped by Ollie Stewart



## Document

Number: 

# 12 ) ll-J- 3 Docket Number: 

# A-94-5 2

Printed 7/31/200811:18:29AM Sheet 12 of 36 P. 1P. 2



# Trai l Wagon s Inc . Fiberglas s Division , Plan

t I I P. O Bo x 258 9 Yakima, W

A 9890 7 Manufacturer s o f Chinoo k R V an d Trail Wagons Vans (509)-452-539 4 FA X (509 ) - 24 8 - 905 4 

# CT-T- 3

Decembe r21,199 9 Mr . Keit h Barnett , Environmenta l Enginee r Unite d State s Environmenta l Protectio n Agenc y Emission s Standard s Divisio n Mai l Dro p #1 3 Researc h Triangl e Par k Nort h Carolin a 2771 1 RE : RESPONS E T O OUTREAC H INPU T PRIO R T O SBREF A Dea rMr . Barnett , Trai l Wagons/Chinook , Inc. , submit s th e followin g issue s relevan t t o advers e economi c impac t t o ou rsmal l compan yshoul d MACT , a s drafte d today , b e implemented :

• A s a smal l manufacturin g entit ylocate d i n th e hu b o f a predominatel yagricultura l valley , Trai l Wagons/Chinook , Inc. , provide s a n alternativ e taxbase , revenu e generator , employer , an d purchase ro f ra

w materials . Th e competitio n i n ou rlabo rpoo l i s hops , apple s an d relate d stone/sof t tre e fruit , grapes , an d th e servic e sector . W e aggressivel ypursu e th e potentia l entr yleve l candidat e fro m that competin g poo l an d the n train , mentor , shadow , an d encourag e retentio n at great expense . Ove rtime , w e hav e elevate d th e income , morale , an d technica l meri t an d abilityo f ou remployees . Relativ e t o thi s industr

y(not jus t thi s valley) , ou rbenefit s packag e i s handsom e includin g vacation , 401K , medical , dental , vision , an d a monthl ybonu s syste m wherebyAL L employee s have th e opportunit yt o becom e eligible . Althoug h contingen t o n market conditions , we provid e yea rroun d employmen t i n a n otherwis e seasona l wor k environment . Ou rcurren t workforc e stand s a t 14 5 afte r achievin g a n 87 % growt h facto rdurin g 1999 . Sinc e 197 2 w e have investe d heavil ytoward s th e quatit yo f ou rproduct , facility , personnel , an d mos t importantl yth e contemporar yissu e o f ou rfuture . Th e MAC T Standar

d a s writte n has th e potentia l t o kil l ou reffort . No t nex t year . No

t whe n th e market falters . No

t whe n we are challenge d b yth e industr

ygiants . Now ! Righ t nowl l • I n Januar

yof 1999 , Trai l Wagons/Chinook , Inc . relocate d t o a sit e approximatel y2 mile s fro m where i t ha s bee n operatin g i n tw o structure s (20,00 0 squar e fee t an d 30,00 0 squar

e feet ) fo r2 1 years . Th e ne w facilit ycontain s al l of th e manufacturin g an d assembl yoperation s o f th e ol d facilitie s excep t thos e o f FRP/Composites . Th e investmen t of th e ne w facilit yi s $3,500,000.00 . Fro m th e ol d site , w e have dismantle d an d reassemble d th e 30,00 0 squar e foo t buildin g a

t th e ne w sit e fo r FRP/Composite s operations . Th e schedule d startu p fo rth e ne w FR P facilit yi s Januar

y15 th , 2000 . Th e investmen t i s th e ne w FR P facilit yi s $1,500,000.00 . A n additiona l $250,000.0 0 has bee n spen t i n th e ne w FR P facilit yfo ra n ai rhandlin g syste m whic h wil l reduce th e HAP s i n th e laminatin g portio n (6,000 ) t o unde r50PPM . That expens e include s compresse d air , dryer , ai rvacuu m fo r baggin g (close d molding) , backu p air , modificatio n o rsprinkler s an d electrica l fo rcompatibilitywit h th e ai rhandlin g system , etc . Whe n compute d t o date , that investmen t pushe s th e window o f th e debt rati o toward s th e limit . Thi s compan yi s a sol e proprietorshi p an d $5,250,000.0 0 i n les s tha n 1 2 month s i s alread ya n extrem e outlay . Ther e wil l b e n o more lending . Period !P. 3

_+• t

I n goo d fait h an d i n advanc e o f th e EP A regulator

ycomplianc e issue(s) , fo rOSH A compliance , fo r wast e an d anti-pollutio n issues , fo reconomi c reasons , Trai l Wagons/Chinook , Inc . converte d AL L of it' s materia l applicatio n equipmen t t o FLO-Chopper s manufacture d b

yMagnu m Industrie s i n Jul yo f 1999 . I n th e ne

w FR P facility , Magnu m Industrie s ai rmotor s wil l b e installe d o n al l o f th e Gel-Coa t applicatio n equipment . Th e FI T (Flui d Impingemen t Technology) retrofi t components have bee n i n m yoffic e fo ra mont h an d are read yfo rinstallation . Eac h o f th e Flo-chopper s i s $7,000 , an d th e retrofi t fo reac h o f th e Gel-Coater s i s $2,200.00 . Withi n th e pas t 1 8 months , ou rbenevolence facto r t o Magnu m wil l excee d $49,000.00 , no t includin g th e O & M outla yfo rroutin e replacement . Sinc e ou reducationa l visi t t o CF A at Chicag o i n October , 1999 , w e have pursue d th e retrofi t an d replacemen t o f al l o f ou rmol d cart s t o includ e overspra yshield s i n a n effor

t t o reduce pollution , us e les s material , an d reduce th e siz e o f th e "footprint " lef t b yresi n whic h misse s ou rmold s i n ou rope n moldin g procedures . Th e expense , no t includin g materia l fo rthos e carts , varie s fro m $10 0 t o $45 0 fo reac h of ou rsmal l molds . Th e larg e mold s expens e als o varies ; th e mos t expensive , includin g material , cost s $4,500.0 0 each . W e have no t calculate d th e overal l investmen t ye t fo rou rspra y shields . I n Apri l o f 199 9 Trai l Wagons/Chinook , Inc . bega n experimentin g wit h lowe rstyren e resin s i n a n effor t t o reduce pollution . Tim e spen t discussin g change , experimenting , enjoyin g produc t failur e an d inferio rstructura l performance a t th e expens e o f routin e productio n wa s offse t b yincrease d worke routpu t i n a valian t effor t bu yran k

an d fil e t o maintai n statu s quo . Th e Mai n Plan t neve rfel t th e pai n bu t ownershi p pai d th e bill . I t appear s that ou reari ypro-activ e postur e wil l pa ydividends . Toda yw e are usin g a 34.7 % monome rresi n wit h more chang e o n th e way . I n th e ver ynea rfuture , w e wil l b e switchin g t o a bul k storag e an d deliver

ysystem . I a m i n th e process , a t grea t expense , o f visitin g resi n manufacturin g an d blendin g facilitie s t o validat e m yrecommendation s t o ownershi p an d confir m that ou r"Lifetime " FR P guarante e (th e onl yon e i n th e industry) ca n b e upheld . W e inten d t o compl yonl yi f w e ca n afford t o sta yi n business . Meetin g th e ne w MAC T Standar

d i s mor e tha n merel ycapito l outlayan d initia l investment . There is , an d has bee n muc h expens e i n researc h an d developmen t withi n ou row n facilit yt o insur e that th e equalit

yan d integrit

yo f ou rproduc

t i s no t t o b e sacrificed . Futhermore , w e hav e jus t complete d th e identica l exercis e b yresearching , designing , an d installin g ou rinterio rai rhandlin g syste m i n a n effor t t o compl ywit h OSHA . W e traveled , w e investigated , w e pu t ou t fo rbid , an d w e have installe d i n ou rne w FR P facilit ya Free s system . Th e volum e of ai r (72,000cfm ) an d th e densit yof HAP S (-50ppm ) d o no t afford u s a n opportunit

ywit h today' s technolog yt o affordabl yinstal l an d operat e a therma l oxidizer , incinerator , o rafterburner . I t i s Trai l Wagons/Chinook' s inten t t o compl ywit h th e mandat e o f th e U.S . congress . W e have a highl ymarketabl e qualityproduct . Th e manufacturin g area s o f ou rcompan yus e 100 % U.S . mad e ra w material . Th e assembl yarea s are clos e t o 100% . Th e FR P facilit yrepresents 25 % o f th e company . Th e regulator

yfinancia l drai n w e are currentl yexperiencin g an d wil l probabl yexperienc e i n th e nea rfuture , i s predominantl yoccurrin g i n th e FR P operations . There i s a brea k poin t an d w e are no t encourage d b

yth e potentia l advers e financia l impact , whic h th e MAC T Standar

d processes . Trai l Wagons/Chinook , Inc. , has researche d th e possibilit yt o eithe rsubcontrac

t and/o rrelocat e a portio n of ou rFR P wor k

i n a n effor

t t o lowe remission s at thi s facility . Th e consensu s i s that ou rcost o f good s manufacture d FO B ou rdock , woul d increas e beyon d a n acceptabl e margi n an d that w e woul d loos e contro l o f productio n an d quality . Pleas e bea ri n min d that th e introductio n o f ou rafterburne rresearc h ha s been , t o sa

yth e least , scary . I t has completel ydisrupte d th e plannin g fo rcertai n faction s of ou rcompany . Fo rinstance , th e FR P facilit yi s currentl yi n a facility , whic h i s als o intende d t o b e relocate d t o th e ne w sit e i n orde r t o suppor t th e projecte d growth . Tha t growt h ca n onl ycom e wit h additiona l output . W e cannot infus e capito l int o growt h whe n i t i s require d fo rcompliance . Cas h flo w fro m th e sal e o f motorhomes , vans , suburbans , an d pickup s mus t b e rolle d int o payroll , materials , an d overhea d i n orde rt o maintai n curren t production . Additionally , thi s effor t has cost a n unprotecte d investmen t i n tim e fro m ou renvironmenta l complianc e personnel , myself , an d ownership . W e shoul d al l b eP. 4

devotin g ou reffort s o n safety , productivity , an d growth , thos e item s whic h brin g fort h advancemen t an d revenue . I f EP A doe s implemen t MAC

T as i t i s currentl ydrafted , ou rquestio n i s "wher e ar e w e lef t standing , wher e d o w e tum? " No

w that we have met OSH A Standard s b yreducin g th e PP M t o -50 , th e densit yi s s o low an d th e cf m s o great (72,000) , th e existin g technolog yt o capture an d contro l i s terribl yinefficient . I n othe rwords , th e horsepowe rt o weigh t ratio n i s no t good ! Wha t othe r technologie s ar

e availabl e whic h ar

e suite d t o ou r situation ? I n what for m ar

e w e receivin g investmen t credit s o r tax relie f i n th e for m of write-offs ? Wha t hel p i s there an d ho

wd o w e ge t it ? Wh o determine s i f we are i n a n economicall y depresse d area , an d doe s EP A hav e acces s t o fundin g fo r relief ? Again , as a smal l business , thi s proposa l has th e ability t o stifl e ou r operation . Sincerely , TrailJVagons/Chirjook , Inc . 5f f Gaskell , Divisio n Manage r cc : Joh n Switze r