p. 1



# OAR Box 

# 1477 Prepped by Ollie Stewart



## Document

Number: 

# 27 ) II-J-1 8 Docket Number: 

# A-94-5 2

Printed 7/31/2008 11:40:24

AM Sheet 27 of 36P. 2 Sen t By : The , Blakesto n Corporation ; 80 3 65 5 7179 j Feb-24-0 0 10:39 ; Pag e 2


# ALAGLAS S POOL S Rout e 1 Bo x 39 3 (Office ) 803-655-500 0 (E-Mail ) Pfelra2997(g)aoUo m Februar y 7 , 200 0

Mr
. Keit h Bameu U S EP A MD1 3 RTP.N C 2771 1 Dea r Mr
. Ban-ieii , 1 a mwritin g lo you to expres s m y concern s an

d suggestion s relativ e t

o thc forthcomin

g Maximu m Achievabl e Coniro i Technolog y (MACT ) regulation s fo

r industrie s tha

t emi t one o r mor e hazardou s ni

r pollutants
. I a

mawar e tha t yo u ar e th c EP A enginee r responsibl e fo

r th c establishmen

t o f thi s standar

d an d tha t I shoul d direc t

al l o f m y comment s directl

y l o you . I wj| ] d o m

y bes t t o do that
. BACKGROUN

D M y wif e an d 1 purchase d Alaglas s Pool s i n Ma y 199 9 fro maprivat e owne r wh o bega n ih e compan

y i n 1987
. Alaglas s Pool s i s amanufacture r o f fiberglas s swimmin

g pool s fo r th e in-groun

d swimmin

g poo l marke t wit h asingl e manufacturin

g plan t located i n rura l Calhou n County , Sout

h Carolina
. The acquisition wa s complete d a s aresul t o f th e effon s o

f th c Smal l Busines s Administration i o who mw c hav e a significan t financia l deb t obligatio n to repa

y ove r th e nex t decade
. Alaglas s employ s 1 1 peopl e wit h ove r 65 % minorit

y representation. Ver

y simply , w

c ar e asmal l manufacturin

g company . Alaglas s pool s are constructe d using the ope n mold manufacturin

g process . Upo

n acquisition w

e replace d al l o f lh e atomized mechanica

l resi n applicatio

n equipmen

t wit h non-atomize

d flo w coale r technolog y fro m Magnu mIndustries
. Th

e ge l coa l application i s currentl

y bein g applied wit

h th e olde r atomize d mechanica

l applicatio n equipmenl ; however , Alaglas s wil l b e replacin g thi s equipmen t wit h non-atomized flo

w coate r technolog y t o b e agai n purchased fro

mMagnu mIndustrie s withi

n th e nex t 6 months
. I n a n effor t t o bette r evaluat e th e emission s environmen

t a t Alaglas s w e conducted a

n ope n mol d MAC T feasibilit y assessmen

t o n Februar

y 4*
. Thi s assessmen

t yielde d lh e informatio

n containe d below : I n additio n t

o thc belo w calculate d poin t values , w e als o calculate d th e actua l tonnag e o l HA

P currentl y

RujuoafRoduct Oo- p Mxttricai

Rrin/^ioforvTodln g NfedT-rtca l Rsri n /SpdicrfiorvTodln a fifed^rica i Rssi n fif^iicsbort-TocllrQ QB I QS* . Rprcrte d VgatftedAerag e To a Qart . Nt e Resi n Ur t Rtrwwi l VAlu e Lttf12t m (Rov ) 18300 0 23SKandF C 3,-C B 25GtS0%s*r*dFC 37,36 0 29Ee57%vriP C - 32,91 8 35530 % 25

7 230^*0/ 0 Mg . Teeh & MC I Un d tow ••fiCWHAP.rnac h S&CKHW.mse h -17.9f t HAP , rreeh 37.CW»K4P,*Triz8 d Rar t VHu e No w 17 0 9 1 18 7 37 7 13 7 Ftecttt o Na w Toch & ftMV Mj**|l0MCrHAP % MfctowTHAP-tt , MjgtowrWf c 37.0 % MAP, mec h No w ran Valu s 9 1 9 1 18 7 Z77(ea ) 12 7 NavSaJO B MUC T Boe r V&B ZB 20 6 20 6 1 9 18 2

bein g emitted
. Tlii s informatio

n i s displayed below :Sen t By : Th e Blakesto n Corporation ; 80 3 65 5 7179 ; Feb-24-0 0 10:40 ; P. 3 Pag e 3/ 4

Process/Produc t Grou p Mechanica l Resi n Application-Toolin g Mechanica l Resi n Application-Toolin g Mechanica l Resi n Application-Toolin g Ga l Coat , Pigmente d Weighte d Averag e Tota l Quant . Resi n Processed Lbs/12mo . 193.00 0 3.40 6 37,35 0 32.91 8 268.67 6 Poin t Valu e No w 17 0 9 1 187 37 7 Tota l Tota l HA P HA P Pound a Ton s Emitted Emitte

d 16,40 5 8.2 0 15 5 0.0 8 3,49 2 1.7

5 6,20 5 3,1 0 26,25 7 13.1 3
ANALYSI S I tappear s tha tAlaglas s Pool s shoul d b e capabl e o f meetin g o r exceedin g th c maximu m poin tvalu e (floor ) requirement

s o n a weighte d averag e basi s fo r resi n applicatio n a s indicate d i n the firs tchar tabove . However , th e ne w sourc e MAC T floo r valu e fo r pigmente d ge l coa l (19 ) coul d neve r b e attained withouta n incinerator . Ou

r ope n mold s rang

e i n siz e u

p t o 16 ' wid e x 40 ' lon g x 8 ' deep , considerably bigge r tha n a fiberglas s tu

b o r shower . Given ih e siz e o f ou r mold s ther

e coul d never b e a 100 % collectio n scenario . Thi s requirementi s unreaUstic for al l fiberglas s swimmin g poo l manufacturer s wh o us e pigmente d ge l coa l t o produce colo r i n ihei r manufacturin g proces s an

d woul d eliminat

e ih c abilit

y o f Alaglas s Pool s t

o continu e t

o produc e fiberglas s swimmin g pool s i n a ne w sourc e envkonment . T o th e bes to f m y knowledge , ther

e ar e n o fiberglas s swimmin g poo l manufacturer s wh o us e incinerators . Eve n wit h additiona l flo w coa ttechnolog y ther e wil l neve r b e a ne w pointvalu e fo r pigmente d g d coal , whic h coul d approximat

e a ne w sourc e MAC T floor valu e o f 19 . I tappear s t o me tha tther e i s enoug h fiberglas s swimmin g poo l manufacturer s l o creat e a subcategor

y hose d o n clas s o r type , which woul d greatl y aid in th e proper cataloguin g o f new source MAC T floo r value s fo r pigmente d ge l coatapplications . Alaglas s Pool s currentl

y doc s no tmeetthe HA

P potentia

l emission s requiremen

to f 1 0 ton s pe

r year fo r an

y singl e HA P o r 2 5 ton s per yea r for an y combinatio n o f

HAPs . However , give n Alaglass ' projecte d growt h i n productio n there i s a significan tprobabilit y o f qualifyin g a

s a major source withi n th e nextyear . Th e five-yea r strategi c growt h plan , which wa s develope d b y Alaglas s l o suppor

tit s fundin

g reques tt

o th e Small Busines s Administration , depicte d annua l productio n growt

h necessar

y t o mee tit s deb tobligation s t o the Federa

l Government(Lender) an d lh e Seller . An

y significan ttruncation o f Alaglass ' abilit

y t o produc e mor e unit s o r an y significan tcapita

l outla y require d t o niee L ne w federa l EP A demand s woul d hav e catastrophi c effect s o n th e company' s abilit y t o meetits deb tobligation s t o bot h th e Smal

l Dusines s Administratio n a s wel l a s lh e origina l Seller .
I n order t n mee tth e Company' s financia l long-ter m deb tobligations , th e Compan y mus tcontinu e t

o gro w bot h throug h productio n an

d employe e expansion . Ne w source s o f production wil l hav e t

o b e constructe d i n orde r t o provid e th c manufacturin g mean s neede d t

o mee tthes e financia

l deb tobligations . A s a small , privately hel d busines s th e Compan y doe s no thav e read

y acces s t

o the capita

l market s a s a sourc e o f odditiona l capital require

d t o mee tan

y capita l expenditur

e requirement

s mandate

d b y th e EPA . Fo

r example , t

o mee tth c projecte d 95 % control requiremen twoul d requir

e the acquisilio n o f

a n incinerato r wit h $ 1,000,00 0 o f

initia l investmentcapita

l an d approximatel

y $180,00 0 t o $250,00 0 pe r year in operalin g costs . Thi s woul d b e for onl y on e ne w sourc e sile . Styren e emission s hav e a half-lif e o f approximately twelv e hour s butth e nitrou s an d sulfuri c oxide s t o b e emitte d b y th e incinerato r woul d hav e a muc h longe r an d pervasiv e effect . Th e onl y sourc e fo r capilal t o meetthi s additiona

l financia l burde n woul d b e debt. An

y federa l EP A requiremen

ttha timpose s upo

n th e Compan

y th e responsibilit

y t o fun d conlro l equipmen

t(i.e . incinerators ) t o mee tth e 95 % contro l requiremen twithou ta si/ e threshold woul d incapacitat e th e Compan

y rendering i

t unable t o grow . The Compan

y coul d no

tborrow th e capita

l necessar y t o meetIh

e federa l regulatio n an

d eve n i f th e Compan

y coul d borrow th c capital , the Compan y woul d notb e abl e t o generat e the additiona

l cas h flo w throug

h operation s required t

o repa y th e lender . Companie s o f greater siz e an

d acces s t o capita

l market s d o no l hav e thi s dilemma ; onl y small , privately hel d companie s ar e affected .Sen t By : The^Blakesto n Corporation ; 80 3 65 5 7179 ; Feb-24-0 0 10:40 ; Pag e 4/ 4

Small , undercapitalize d manufacturin g companies , whic

h compris e the greate

r percentag e o

f manufacturin

g companies , d o no l hav e acces s l o read y capila l an d could not

generat e th e additiona

l cash flow require d i o repa y additiona

l deb t inciden t to meetin

g EPA' s 95 % contro l requirement s fo r ne w o r reconstructe d sources . Thc financia

l burde n placed upo

n asmal l manufacture

r woul d b c catastrophi c an

d most likel y eliminat e man y smal l manufacturers , l

n th e fiberglas s swimmin

g poo l manufacturin

g marke t al l o f th c manufacturers ar

e small
. Th

e impac t o f thi s federall

y mandate d "n o growth " strateg

y resultin g fro

mth e propose d EP

A requiremen

t woul d eliminat

e man y smal l manufacturers
. Th e nee d fo r reasonabl e emission s regulation s i s understandable
. However, suc h regulation s canno

t b e enacted in suc

h amanne

r tha t effectivel y promot e a"n o growth " strateg

y fo r privatel y hel d smal

l businesse s and serv e onl

y t o accommodat

e th e wel l capitalize d large

r publicl y held companies
. Th c weighted averag e poin

l valu e methodolog

y i s reasonable an

d understandabl e an

d provide s equa

l an d fai r opportunitie s fo

r bot h privat e an d publicl y hel d manufacturers t o mee

t th e proposed ne

w EP A emission requiremeni s if

i t accuratel y reflect s th c operaling environmen t o f atargeted industry
. Th

e ne w sourc e MACT floo

r o f 1 9 fo r pigmented ge

l coa t represent s a

n unattainabl e standard ; i

t cannot be anaine d withou

t massiv e outlay s o f

inaccessibl e capilal
. Th

e diversit y o f thc composite s industr

y dictate s amor

e equitabl e approac h to thi s issue
. In additio n i o th e unattainabilit y o f th e ge l coa t ne w sourc e MAC

T standard , the 95 % contro l requiremen t fo r ne w source s i s unfai

r an d severel y penalize s small , privatel

y held companies
. The concep t o f asiz e threshold i s reasonabl e an

d fai r to bot h smal l an d larg e manufacturers
. T

t encourage s small , independen t companie s to continu e to inves t an d innovat e i n ou r industi y while i t place s maximu

memphasi s o

n ih e larg e well-capitalize d manufacturers wh o emi t greate r tonnag e o f IIA P an d ca n affor d t o conlro l i t A s yo u ar e well aware , the Clea

n Ai r Ac t o f 1990 , paragrap

h 1 , sectio n 112(d

) state s tha t th e EP A "ma y distinguis h amon

g classes , type s an

d size s amon

g sources"
. Th

e mandat e fro mCongres s give s th

e EP A th e latitud e lo d o so . Th c fiberglas s swimmin

g poo l industi

y i s ayoung , vibran

t an d growin g industr y consisting o

f man y smal l independent , privatel

y owne d companie s wh

o have n o read y acces s t o th c publi c capita

l markets , An

y federa l EP A requiremen

t mus t b c fai r an d equitabl e t

o thos e smal

l manufacturers a

s wel l a s reasonabl e i

n th c interpretatio n o

f th e mandat

e fro mCongress
. RECOMMENDATIO

N I a mrecommending tw

o specific actions : 1 ) Tha t the EP A implemen

t a95 % contro l requiremen

t fo r al l ne w an d reconstructed source s wit h a siz e threshol d o

f 95-100 ton s annuall

y o f IIA P emissions
. 2 ) Tha t th e EP A utiliz e th e existin g sourc e MAC T floo r fo r pigmente d ge l coa t o f 26 5 a s the ne

w sourc e MAC

T floo r standar d eithe r a s a n overall standar

d o r fo r anewl y create d subcategor

y encompassing fiberglas s swimmin g poo l manufacturers
. Mr
. Bametl
. the impac t

o f you r decisio n wil

l hav e a n overwhelmin

g impac t o n m y Company' s abilit

y t o gro w an d remain afinanciall

y viabl e manufacturer
. T hop e tha t you r fina l decision fairl

y reflect s th

e operaling characteristic s o

f th e fiberglas s swimmin

g poo l industi

y an d i s constructed i

n auc h a manne r lha t al l small , privatel

y owne d manufacturin

g companie s ca

n continue t

o gro w an d innovalc
. I encourag e yo u t

o contac t m c directl y i f yo u hav e an y queslion s o

r i f yo u require furthe

r amplificatio

n o n an y o f th e issue s I hav e outline d above
. P. 4



# c Than

k yo u fo r your assistance
. Sincerely , I «***rdd.^

W f< /«= : Pau l M
. (Monty ) Feli

x President/CE O