IEPAATTACHMENTNO.: 

# (l. 

# ORIGINAL

A P PEA RAN C E- S BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

Proceedings held on April 23, 2004, at 12:00 p.m., at the offices of the West Frankfort City Hall, 201 East Nolen Street, West Frankfort, Illinois, before Ms. Carol Sudman, Hearing Officer.

ILLINOIS ENVIRONMENTAL PROTECTION AGENCY BY: David Bloomberg Charles E. Matoesian Assistant Counsel 1021 North Grand Avenue East Springfield, IL 62794-9276 

### ReCEIVED CLtiRK'S OFF/CE



## MAY- 

## 62004 STATE OF 

### ILUNDIS P.o/lutron Control Board



# RECEIVED Division of Legal Counsel 

## MAY 10 2004 EnVironmental Protection Agency IN THE MATTER OF: ) ) PETITION OF CROWNLINE**~OATS,** INC.,} AS 04-01 FOR AN ADJUSTED STANDARD FROM ) 35 ILL. ADM. CODE 215.301 )

VOLUME 1 ALSO PRESENT: Ms. Alisa Liu BRYAN CAVE, LLP BY: Dale A. Guariglia One Metropolitan Square 211 North Broadway, Suite 3600 St. Louis, MO 63102 ADVANCE ENVIRONMENTAL ASSOCIATES, L.L.C. BY: Andrew Polcyn, M.E. 300 Second Street St. Charles, MO 63301 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24

1 Keefe Reporting Company1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I N D E X

WITNESSES JAMES T. CLAXTON: DALE A. GUARIGLIA: ANDREW J. POLCYN: E X H I BIT S

IDENTIFICATION Exhibit Nos. 1 through 3 (marked): Exhibit Nos. 4**thro~gh** 8 (marked): Exhibit Nos. 1 through 8 (admitted):

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PG. 

### 4' 11 42

2

### 1 PROCEEDINGS 2 (Hearing Exhibit Nos. 1 through 3 were 3 marked.) 4 (April 23 2004**l2:~0** 

### p.m.) 5 

### HEARING OFFICER: Good afternoon: My 6 name is Carol Sudman. I'm a hearing officer with the 7 Pollution Control Board. Joining me today is Alisa Liu 8 

### from the Board's technical unit. This is the hearing 9 for Adjusted Standard 04-1, Petition of Crownline Boats 10 for an Adjusted Standard from 35 Illinois Administrative' 11 Code 215.301. 12 It is April 23, 2004, and we are 13 beginning at 12:00 p.m. I wili mention that the**C~ty** 

### 14 Hall has moved about half a block recently, but I did 15 post a note on the old building, and it does appear that 16 

### everybody made it all right. It was notca big move, but



# . 17 we had to change facilities, so I apologize for the 18 inconvenience. 19 I will note for record that there are 20 no members of the public present. Members of the public 21 are allowed to provide public comment, if they so 22 choose. In this petition, Crownline seeks an adjusted 23 standard from a regulation pertaining to the emission of 24 volatile organic material at Crownline's West Frankfort

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### 1 boat manufacturing facility. 2 You should know that it is the 3 Pollution Control Board and not me**tha~** 

### will make the 4 final decision in this case. My purpose is to conduct 5 the hearing in a neutral and orderly**~anner,** 

### so that we 6 have a clear record of the proceedings. I will also 7 assess the credibility of any witnesses on the record at 8 the end of the hearing. 9 This hearing was noticed pursuant to 10 the Act and the Board's rules, and will be conducted 11 pursuant to Sections 101.600 through 101.632 and 104.422 12 of the Board's procedural rules. 13 At this time, I would like to ask the 14 parties to please make their appearances on the record. 15 MR. GUARIGLIA: I am Dale Gua-riglia with the 16 law firm of Bryan Cave representing Crownline Boats. 17 MR. MATOESIAN: Charles Matoesian appearing 18 for the Illinois Environmental Protection Agency. 19 HEARING OFFICER: Thank you very much. Are 20 there any preliminary matters you wish to discuss on the 21 record? 22 MR. MATOESIAN: No. 23 HEARING OFFICER: Mr. Guariglia, would you like 24 to make an opening statement?

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### 1 MR. GUARIGLIA: I think what I would like to do 2 is to have our first witness speak first, Mr. Tim 3 Claxton of Crown1ine Boats. 4 HEARING OFFICER: Mr. Matoesian, do you have an 5 opening s.tatement? 6 MR. MATOESIAN: Just a brief one, but they can 7 go ahead. 8 HEARING OFFICER: I mean, are you making an 9 opening statement, or are you ready to -- 10 MR. GUARIGLIA: I think "Ie' re ready to begin'. 11 HEARING OFFICER: Well, let me ask Mr. Matoesian 12 to make your opening statement. 13 MR. MATOESIAN: I was just going to state**t~at** 

### 14 we filed a brief or recommendation on January 20, 2004, 15 recommending that this Adjusted Standard be granted, and 16 pursuant to conversation with the Petitioner, we will 17 just stand on our brief at this time. 18 However, I do have Mr. David Bloorrberg 19 with me. He's an environmental protection engineer with 20 the air quality planning section for the Bureau of Air, 21 and he is available to answer any questions that the 22 technical staff may have. 23 HEARING OFFICER: Thank you. Mr. Guariglia, you 24 may call your first witness, or is that going to be you?

Keefe Reporting Company 5this is probably just as well. MR. CLAXTON: I will speak up. My name is Tim Claxton_ I'm President of Crownline Boats. I'm also

you, Ms. Sudman, and you, Ms. Liu, for making the appearance today. We appreciate your interest in this matter. Also in the room are other Crownline personnel,

as we have identified. Crownline**B~ats,** as I said; is a family-owned manufacturing operation. We're located here in West Frankfort. Ownership of the company is MR. GUARIGLIA: No. Mr. Claxton will be the first witness. HEARING OFFICER: Mr. Claxton? MR. CLAXTON: Yes. HEARING OFFICER: WoUld the court reporter' please swear in the witness. (At which point in the hearing, Tim Claxton was sworn.) HEARING OFFICER: Mr. Claxton, I don't know if you would like Mr. Guariglia, would you like to have him sit there, or would you like to have him sit up here?

one of the owners of Crownline. I would like to thank If the court reporter can hear, MR. GUARIGLIA: 1 2 3 

### 4 5 6 7 8 

### 9 1'0 11 12 13 

### 14 15 16 17 18 19 20 21 22 23 

### 24

6 Keefe Reporting Company

### 1 myself, and two sisters. Myself and one of my sisters 2 are active in the business. The other is not. 3 We began operations as a manufacturing 4 concern in 1991. As a start-up operation, we began 5 with, aPProximately, 15 employees. Over the course of 6 the last 13 years, we have grown to a company size now 7 of employees in excess of over 650 employees. We're one 8 of the largest**emp~oyers** 

### in Franklin County and the 9 region, at large. 10 

### we compete in a national and an 11 international marketplace with companies that are much 12 larger than us, much more diverse than us, and companies 13 that, quite frankly, have manufacturing operations that 14 are not in the state of Illinois where we are being 15 asked to comply with some regulations, in specific, the 16 eight-pound-per-hour rule that we are asking the 17 adjustment for. 18**~hese** 

### companies -- we don't -- they 19 don't have to comply with the same regulations that we 20 are being asked to. We are simply here today to ask 21 that the state of Illinois allow us to take to the field 22 on a level field. 23 We have, throughout the life of our 24 business, been -- I think we have been a good corporate"

Keefe Reporting Company 71 neighbor. We have tried to certainly comply with any 2 regulations that might be placed upon us by any 3 governing body. We just think that we are being asked 4 to meet a regulation that our competitors aren't, and 

# . ' 5 it's puts, us at a disadvanta'ge. This is important'to 6 Crownline, 7 As I said, we are a family, local 8 company, We have always been in this area. I grew up 9 here. My sisters grew up here. We still live here. We 10 work, play here. We don't feel like we are, in any way, 11 endangering or negatively impacting'the environment 12 through our manufacturing process. 13 It would be most appreciative if you 14 would listen to Mr. Guariglia's presentation here today, 15 and see your way clear to a positive recommendation for 16 Crownline. Thank you, 17 18 MR. MATOESIAN: No questions. HEARING OFFICER: Thank you. - Thank you very 19 much, sir. 20 MR. GUARIGLIA: I would like to testify now, so 21 I guess if you would like to swear me in. 22 (At which point in the proceedings, Dale 23 Guariglia was sworn in.) 24 MR. GUARIGLIA·: Ms. Sudman, Ms. Liu, thank you'

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### 1 for the opportunity to speak with the Board here today, 2 and come before you. 3 As I mentioned, my name is Dale 4 Guariglia with the law firm Bryan Cave representing 

### , 5 Crownline.Boats, and we are here today to request an 6 Adjusted Standard on behalf of Crownline Boats from the 7 eight-pound-per-hour rule, as set forth in our petition. 8 I think it may be somewhat helpful to 9 understand a little bit of background as to how we got 10 to this place, procedurally. Crownline had submitted an 11 application for a Title V permit back in the 1990's. As 12 a. part of that process of having the permit discussed 13 with the IEPA, at that time, the issue came up as to how 14 Crownline would comply with the eight-pound-per-hour 15 rule. And, also, during this time, the emission factors 16 at Crownline had been using to calculate.VOM emissions 17 from its operations were changed. The federal EPA 18 decided that the old emission factors that the industry 19 had been using were no longer accurate or valid, and 20 because they, supposably, underestimated emissions, and, 21 therefore, issued new emission factors for the 22**boat~building** 

### industry, so Crownline began these 23 discussions with IEPA as to how it was going to be 24 demonstrating compliance with the eight-pound-per-hour'

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### 1 rule. 2 During**~hose** 

### discussions, there was 3 questions about whether averaging could be used to**~eet** 

### 4 the eight-pound-per-hour rule, and also what the 

### , 5 emission Source was under the eight-pound-per-hour" rule. 6 During those discussions,IEPA determined that averaging 7 should not be used to comply with the 8 eight-pound-per-hour rule, and that that emission source 9 should be considered the part that is being 10 manufactured. 11 As a" result of those**discu~sions,** 

### 12 Crownline, basically, determined that, if it had to 13 comply with the eight-pound-per-hour rule on a strict 14 hourly basis, that there could be no averaging, that 15 Crownline could not comply on that basis, and, 16 therefore, discussed this with IEPA, and"IEPA encouraged 17 Crownline" to seek an Adjusted Standard. As a result of 18 that, we filed our petition for an adjusted standard 19 last fall. 20 Also, Crownline was issued a Title V 21 permit back in November of last year, which, 22 specifically, provided that they were to obtain an 23 adjusted standard by the end of this year or to 24 demonstrate their compliance with the

Keefe Reporting Company 101 eight-pound-per-hour rule. 2 Let me -- I have prepared a kind of a 3 bullet-point presentation, which I have given to each of 4 you and to IEPA. It is marked I think as Exhibit 3. If 5 you would· like, you can follow along with what I have to 6 say. It might just make it a little bit easier. I will 7 follow this fairly closely. 8 I forgot. We do have another set of 9 exhibits, which are a series of photographs. I don't 10 know if you want to mark these. Why don't you mark 11 'these as Exhibits 4, 5, 6, and 7 and 8. 12 HEARING OFFICER: Sure. Let me ask you this, do 13 you have any more exhibits coming? 

### 14 MR. GUARIGLIA: I do not think we do, no. 15 HEARING OFFICER: Okay, because I could mark 16 them**a~** a set. MR. GUARIGLIA: That would be fine. We could

(Exhibit Nos. 4 through 8 were marked.) MR GUARIGLIA: Let me take a brief minute to, 17 18 19 20 21 22 23 24 MR GUARIGLIA: Yes. or

11 Keefe Reporting Company

### 1 talk about Crownline's production process. Essentially, 2 by a six-step process, although I'm combining a few here 3 near the end, but essentially, the first would be mold 4 fabrication where the molds are built in order to make 

## ,

. 5 the parts ·to construct the boats. 6 The second is gelcoat application, 7 essentially, spraying, making the outside smooth part of 8 the boat, and I will spend a little bit more time on 9 that, and then moving to lamination where you are 10 actually constructing the fiberglass part, itself. 11 Grind and trim is, essentielly, taking 12 off the excess parts or excess scrap from the parts. 13 You go into woodworking, upholstery, and final assembly 14 where you have things like upholstery, carpets, seats, 15 stereos, the things people like in'their boats, and, 16 finally,_- sh:i,pping out. 17 The process that I will spend the most 18 time on talking about here today is gelcoat and 19 lamination because those are the areas where there is 20 the most VOM emissions from the plant, but it is 21 important to point out, though, that, on a· strict hourly 22 basis, a number of the other processes, besides gelcoat 23 and lamination, will also not need the 24 eight-pound-per-hour rule on a strict hourly basis.

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### 1 First, the gelcoat application. 2 Exhibit No.4 is a photograph, actually, of a mold that 3 is being prepared, and it is being prepared in a gelcoat 4 booth, and the mold that is done as this is, 5 actually, -the bottom part of 'a hull of a boat on Exhibit 6 4, and once this mold is prepared, it is essentially 7 flipped over in order to make

-- in order to begin the 8 gelcoat process. 9 Exhibit 5 that you have there is a 10 photograph of a deck that is being prepared in the 11 gelcoat process. What -the gelcoat process is it's kind 12 of a very interesting, actually, if there is anything 13 interesting in manufacturing, but bUilding, like I said, 14 the hull of a boat you would start with a mold that 15 looks like a big bathtub, and you spray this gelcoat 16 inside of it, which becomes the**exterior~coating** 

### of the 17 hull, so you're, essentially, painting the outside of 18 the hull before you actually even build the hull, so yqu 19 spray that in the mold, and allow that to cure, and then 20 you would move over to the lamination station where the 21 fiberglass would be put in to create,. actually, the 22 hull, and the gelcoat will adhere to the fiberglass to 23 create the hull of the boat. 24 There are 31 air-atomized guns that

Keefe Reporting Company 131 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 are used in the gelcoat booth that are sprayed. The gelcoat is done in a single application that is sprayed into the part or into the mold, and Crownli·ne has already instituted worker protection and also pOllution

. 

## , control equipment in having 180,000-cubic-feet-per-minute ventilation system in order to keep the air in compliance with the OSHA Worker Protection Standards for styrene. Under the OSHA Worker Protection Standard, you could not have more than 100 parts per million of styrene, and, as a result of that, you have to move a lot of air through the facility in order to protect the workers. We do have

-- Crownline does have dedicated spray booths to reduce the styrene levels and plant air outside of the booths. It also filters to filter ·out. particular matter, and also uses low styrene resin, 33.4 percent average currently right now. After the molds -- or after the gelcoat is cured, these molds are moved over to the lamination area where the fiberglass is sprayed in using

a flow-coat chopper gun. Essentially, what you have is glass fibers that are mixed with a resin and a catalyst, and are sprayed into these molds. If you refer to photographs 6 and 7, that shows the area in the

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### 1 lamination areas. You can see in the center of 2 photograph 6 there is actually a spraying of lamination 3 that's going on, and then, in photograph 7, marked as 4 Exhibit 7, what happens after or as a part of spraying 5 the fiberglass into the boat'mold you do have several 6 people that will be then rolling the fiberglass smooth 7 in there in order to eliminate any air bubbles, so you 8 will have

-- ther'e are 24 separate flow-Coat applicator 9 guns that are used, and often, when a part is sprayed 10 with these guns, you will have two or more guns being 11 sprayed at the same time. 12 Depending upon the size of the part, 13 you may have more than one layer that is actually layed, 14 and so what you would do is you would spray in a layer, 15 also known as a skin of the fiberglass, wait for that to 16 cure. 'That would usually be about an hour or two, and 17 then come back in, and lay a second layer in, and 18 depending upon the size of the part,there may be two to 19 three layers that are sprayed in order to complete the 20 part. 21 Crownline also has Worker Protection 22 Push Control Equipment in the lamination area. 23 160,000-cubic-feet-per-minute ventilation system for the 24 OSHA Worker Protection requirements. Panel filters,

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### 15

### 1 also, to control particulate and submerged-fill resin 2 tanks in order to reduce splashing. 3 Let's spend just a minute**tal~ing** 

### -- 4 I·"m on page five of my outline on Exnibit 3. Regarding 5 the compliance with the new MACT Standard, since that is 6 the basis for what Crownline is asking to comply with, 7 as opposed to the eight-pound-per-hour rule. Beginning 8 August 23, 2004, Crownline, like all other boat 9 manufactures in the US, are going to have to comply with 10 the new MACT Standard, and this sets a floor using the 11 emission limits achieved by the best performing 12 12 percent of the boat manufactures in the country, and 13 that was -- in most of those companies, most of those 14 manufacturing companies will use lower styrene resins 15 and gelcoats and flow-coat applicators in order to 16 comply with the new MACT Standard. 17 The EPA, in comparing the MACT 18 Standard, determined that end tail stack controls woul¢ 19 not be needed

-- would not be the MACT floor in order to 20 comply. Crownline is currently in compliance with the 21 emission standards under the MACT, and has been in 22 compliance for about six to eight months, essentially 23 about a year early from what the EPA has required. 24 The -- some of the questions that were

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### 1 submitted through the**He~ring** 

### Officer's order asked 2 about what the costs had been for Crownline to comply 3 with the MACT Standard, and in Exhibit No.1, I have 4 detailed those costs, but let me just mention them here. 5 Essentially, there was a $96;000 capital cost to 6 Crownline for changing out .its air-atomized spray guns 7 to use the lower emission flow-coat guns. There's also 8 about a $4,000 a week extra expense that Crownline's 9 incurred in labor costs in the sense of it requires more 10 people to, basically, rollout the fiberglass, and also

.**11~0** 

### touch-up in order to just to**~aintain** 

### product quality 12 because, with the lower styrene resins,**i~** 

### does effect 13 product quality, and does require additional labor. 14 There's also about a $6,000 a year 15 reporting, recordkeeping requirement that will be 16 needed," and then, also, Crownline's spent" about $80,000 17 in consulting costs in just trying to get- up to speed 18 with the MACT. 19 Essentially, kind of what this all 20 boils down to is about an amount of $215,600 per year in 21 costs which Crownline is incurring in complying with the 22 MACT Standard, which works out to be about $4,312 per 23 ton. 24 Crownline

-- and let me mention one

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### thing, also, with regard to the MACT Standard, and our 2 adjusted standard**re~uest.** 

### The

-- I have provided, as 3 

### Exhibit 1, responses to the questions, and imrnediately 4 after those responses there is a one page that says, 5 "Crownline Boats, =nc., Revised adjusted standard' 6 Language." That is now the new language that Crownline 7 is requesting for**~he** 

### adjusted standard, and this is 8 language chat**Cro~nline** 

### and the IEPA have discussed, and 9 we are both in agree3ent as to the teres of that 10 language for the aijusted standard. Do you see that in -11 

### the packet?

12 MS. LIU: Could you point me in the right 13 

### direction? 14 MR.**GUARIG~IA:** 

### Sure.**Exhibit~,** 

### the responses. 15 HEARING O??ICER: Page nine. 16 .MR.**GUARIG~=A:** 

### The first page right after

-- 17 it's a one-page -- 18 MS. LIU: =hank you. 19**~B.** 

### GUARIG::'IA: Sure. If I'm not making myself 20 clear, please stop ce, and, you know, feel free to 21 interrupt. Let me calk about just Crownline's 22 investigation of**o~her** 

### alternatives to comply with the 23 

### eight-pound-per-hour rule. 24 Crownline did investigate three

Kse:e Reporting Company . 181 

### different options for complying with the 2 eight-pound-per-hour rule. One was reducing VOM content 3 in production materials. The second was**alter~ative** 

### 4 production**~ethods!** 

### i.e., is there a better, different 5 way to make a boat that's on1y going to have eight· 6 pounds per hour emitted, and the third is comply by 7 installing end-of-the-pipe emission controls. 8 Essentially, other than 9 end-of-the-pipe emission controls, none of the other 10 technologies, reducing content of VOM materials and 11 production materials, or doing a different kind of 12 production method, neither of those would cause 13 Crownline to comply with the eight-pound-per-rule-hour 14 rule, so it would only be putting tail stat controls on. 15 Crownline has reduced its**VO~** 

### content 16 and its· pr9duction materials in order to·comply with the 17 MACT, and has seen reductions in total VOM as a result 18 of that. However, further reduction is really not 19 technically feasible at this point while still being 20 able to maintain product quality. I mean, you are 21 essentially building a boat that is going to be going 22 through a lot of wear and tear, a product that's going 23 through a lot of wear and tear, so this is different 24 than, like, a fiberglass hot tub, so you will have

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### 1 people riding it going at who knows what kind of speeds, 2 so you will want to maintain a very strong product 3 quality in order to protect the safety of the boaters. 4 And so, as a result of that, right now going to a lower 5 styrene resin or gelcoat just has not been able to· 6 maintain that product quality. 7 Second, Crownline looked at 8 alternative production methods, and for, both, open 9 molding and closed molding, and -chose are detailed in 10 our petition in a technical docQ"ent that will attach to 11 the petition, so I'm not going to go through those, but, 12 essentially, there's really no qualitative data -- or 

### 13 I'm sorry -- quantitative data to show actually how much 14 those alternative methods would reduce emissions, and 15 really without add-on controls, none of those 16 alternatives would allow Crownline to actually comply 17 with the eight-pound-per-hour-rule on a strict hourly 18 basis; and even further, those alternative technologies 19 only relate to the lamination process, bring the

, 

### 20 fiberglass in the boat, and don't apply to some of the 21 other areas, such as gelcoating, caulking, adhesives 22 that go on the carpet, and so even if an alternative was 23 used in the facility, it would still not allow Crownline. 24 to fully comply with the eight-pound-per-hour rule on a

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### 1 strict hourly basis. 2 Let me talk for a minute**abo~L** 

### the use 3 of tail end or end-of-the-pipe controls for CrcNnline, 4 and why those' are really not feasible.**Crownl~ne** 

### did 

### , , 

### 5 obtain cost quotes from Control System Suppliers, took 6 those quotes, put them into an EPA spreadsheet for 7 estimating cost on a per-ton basis, and the costs that 8 were identified were essentially up front capital costs 9 would be needed of 7- to**14-~illion** 

### dollars in order to 10 install those, and also annualized operation costs of 11 four-and-a-half'to 6-million dollars every year just to 12 operate these pollution control devices, and also which 13 would; basically, come out to I believe at about $35,000 14 to $58,000 per ton of YOM removed, and the reason these 15 costs are so high is because of**th~** 

### OSHA Worker 16 Protection.Standard. You have to just move an 17 incredible amount of air through that facility in order 18 to keep the styrene levels low enough that you don't**-~** 

### 19 you're not exposing the workers there to unacceptable 20 levels of styrene. So, as a result of that, when you 21 move that much air through the facility, it. just 22 exponentially increases the costs of. any end-of-the-pipe 23 pollution control limit. 24 One of the things that Crownline has

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### 1 done is install an $800,000 air ventilation system in 2 its facility in order to make sure it does comply with 3 the OSHA Standard. 4 Let me tall" a minute about the impact 5 on the environment in comparing the adjusted, if 6 Crownline were to comply with the adjusted standard, as 7 opposed to the eight-pound-per-hour-rule. I'm on page 8 11 of my outline, which is Exhibit 3. 9 Essentially, Crownline's pre-MACT 10 compliance emissions were, approximately, 245 tons per 11 year. Ana Crownline's current emissions are, 12 approximately, 195 tons per year, and this is 13 sometimes it's hard to do a perfect comparison, and this 14 comparison here is based upon an equal amount of boats 15 being produced in order to compare those, and, 16 obviously, the total amount of VOM produced is going to 17 vary, depending on how many boats, and what models of 18 boats were produced, but, essentially, there's been 19 about a 50-ton reduction that will be realized by 20 Crownline, or is being realized now by Crownline 21 complying with the MACT Standard. 22 If Crownline were to comply with the 23 eight-pound-per-hour rule, assuming that we could reduce. 24 our emissions down to eight pounds per hour, we have

--

Keefe Reporting Company 221 Crown1ine has calculated that the· emissions would be, 2 approximately, 144 tons a year, so there would be about 3 an additional 50-ton decrease of emissions, if we could 4 comply with the eight-pound-per-hour rule. 5 Let me mention why that is not 6 significant. Really, for a c8uple reasons. One, is, in 7 order to comply, we would**nee~** tail stat controls for 8 the entire facility,**~nd** one of the options would be to 9 put on an oxidizer at the facility, which is going to 10 require an incredible amount of natural gas to be 11 burned. As a result of that, you are going to have 12 energy**consUIT~tion** that we wouldn't have otherwise, and 13 you're also going to have NOx being produced, which you 14 wouldn't have otherwise by**jus~** complying with the MACT 15 Standard, so you are going to get some additional air 16 contaminates as a result of putting on tail stat 17 controls. 18 Also, the other thing is the 19**eight-poun~-per-hour** rule is a little unique in the 20 sense that there may be, theoretically, able to comply 21 with it, but, yet, still emit the same amount of total 22 VON. For example, let's say you could develop a resin 23 or a gelcoat that cured over a longer period of time. 24 So instead of emitting 14 pounds in the first hour,

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### 1 which would be a violation of the eight-pound-per-hour 2 rule, let's say it would be able to be spread out over 3 two hours and have seven pounds in one hour, seven 4 pounds in a second hour, you**wo~ld** 

### be in compliance with 

### , , 

### 5 the eight-pound-per-hour-rule, but you would still 'have 6 the same amount of VOM being produced, and what we 7 believe by complying with the MACT is that we are having 8 a real reduction in the total amount of VOM produced. 9 

### Let me talk, also, about ozone impact 10 from Crownline's operation, and comparing between 'if 11 we're complying with the MACT, which we are, versus 12 complying with the eight-pound-per-hour rule. 13 Essentially, what we had done was we had performed an 14 ambient air quality impact analysis that Crownline's 15 consultant, Andy Polcyn with Advanced Environmental, had 16 prepared.

_And looking at a few scenarios, one would be 17 if we complied with the MACT, versus if we complied with 18 the eight-pound-per-hour rule, and this air impact 19 quality modeling, essentially, looks at what the 20 background concentration of ozone is, and then look,s at 21 what the extent of increase would be based upon a level 22 of VOM being emitted by the plant. 23 What you have marked as Exhibit 2, 24 which I have provided, is a comparison of ozone impact

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### 1 based upon different tons of VOM being emitted. In 2 column one, it shows different amounts of VOM being 3 emitted, and then it would show, in column 4, the 4**contr~bution** 

### to ozone, the increase in ozone that would 

## , 5 result from those VOM emissions shown in column 1. " 6 

### Crownline, let's say, roughly, their 7 emissions, let's say, would be 250 tons a year. That 8 would show an increase of, essentially, eight 9 thousandths of a part per million of ozone increase in 10 South Central Illinois. That compares with the first 11 column, the first line which is 160 tons per year, which 12 would be, essentially, if we are complying with the 13**eight-pound-per~hour** 

### rule, there would be an increase of 14 essentially five thousandths parts per million. 15 Let me --**basically~** 

### the bottom line 16 here is" that the difference between complying with the 17 MACT, and complying with the**eight-pound~per-hour** 

### rule 18 is that we would only see a possible increase of three: 19 thousandth's of a part per million increase in ozone by 20 complying with the adjusted standard we are requesting, 21 as opposed to the eight-pound-per-hour rule, but then 22 again, as I also mentioned, there would be additional 23 NOx submitted if we did comply with the 24 eight-pound-per-hour rule, so, essentially, kind of the"

Keefe Reporting Company 251 bottom line is that we would see a very insignificant 2 possible increase in ozone, but the other thing to keep 3 in mind here is that Crownline's current emissions, as 4 complying with MACT; are still 40 to 50 tons less as a 5 couple years ago, so, as compared to where we were a 6 couple years ago, we are really not asking for an 7 increase here at all. We are saying we are decreasing 8 our emissions by complying with the MACT Standard, and 9 these emissions

-- Crownline's current emissions should 10 not cause any exceedence of the one-hour ozone standard, 11 and based upon this'chart, you would· have to, basically, 12 triple to quadruple Crownline's emissions up to, 13 approximately, 917 tons per year before you would get 14 close to an actual exceedence of the one-hour ozone 15 rule. 16 Let me mention I guess briefly cross 17 media impact from complying with the adjusted standard, 18 as opposed to eight-pound-per-hour rule. Essentially, 19 we just don't see that there would really be any 20 increase in cross media impacts from complying with the 21 adjusted standard. As a matter of fact, the EPA 22 indicated, when they developed the MACT Standard, that 23 there would be no adverse impact on water quality. 24 There would be no increased energy consumption.

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### 1 Actually, the amount of solid waste would actually 2 decrease. 3 Going over to page 15 of my outline 4 talking, basically, about the justification for this 5 rule, and· why the factors re'lating to Crownline are 6 sUbstantially and significantly different than what the 7 Board looked at when they developed the 8 eight-pound-per-hour rule. 9 The eight-pound-per-hour rule "'=.s 10 promulgated in 1971 as a catch-all provision, and the 11 factors relied upon by the Board**~-** 

### it's kind of hard to 12 tell what they were really thinking 30 years ago more

, 

### , 13 than 30 years ago -- but what we have kind of seen in 14 some of the Board decisions it looks like it was 15 twofold; one, to exceedence of the one-hour ozone 16 standa:r:d, and the other was to reduce odors; and, 17 basically, both of those really should not be an issue 18 in its application to Crown1ine, in ·that Crownlin2 is· 19 putting a system in place in order to eliminate odors. 20 Several

-- probably 10 years ago -- there was an odor 21 .problem from the facility, and they have installed 22 equipment in order to reduce that, and since then, there 23 really hasn't been any complaints in the community about 24 odor from the facility; and, second, as I mentioned

Keefe Reporting Company 271 earlier, the increased impact ozone is insignificant 2 from Crownline's operation, so the factors that the 3 Board was really designed to look at were not really 4 that**-~** are really not applicable to Crownline's 5 application. 6 I guess, moreover, not only looking at 7 what the Board looked at in "71, but what also the Board 8 didn't look at in "71 because they couldn't have looked 9 at it as thinking about all the things that have 10 happened since "71, and that if the Board had known 11 ,about some of these developments, maybe they would have 12 or maybe would have made the eight-pound-per-hour rule 13 different, and, essentially, what you have back in "71 14 there was no emission data for boat building, and that 15 ,came out in 1991, and, also, that was significantly 16 changed in the late 1990's and had the Board had that 17 information, they may have done something different. 18 Also, just the OSHA Worker Protection' 19 Standard, and the need to plush so much air through 20 these facilities. That's not something the Board 21 considered back in 71, nor could it have done that, nor 22 could it have ever foreseen there would be the OSHA 23 Standard, and also just the recently-issued**~~CT** 24 Standard, that now there is a federal guideline

Keefe Reporting Company 28

### 1 specifically for reducing VOM emissions from boat 2 manufacturers. 3**Essent~a11y,** 

### the existence of these 4 factors justify the granting of an adjusted standard. I 5 do have, pn page 17, it talks about

-- of my outline

-- 6 that those adjusted standards will be consistent with 7 federal law. That is definitely clear, since we are 8 basically, essentially, asking to comply with the MACT 9 Standard, which is a federal standard. 10 There is also no rederal equivalent to 11 the eight-pound-per-hour rule, so it's not like we are 12 asking to get out of something that's also a federal 13 requirement. And the adjusted**~tandard** 

### will become part 14 of the Illinois SIP, which is part of the federal 15 regulations. 16 Let me conclude by, basically, saying 17 that this is a very important issue for .Crownline, and 18 it would put Crownline in a significant competitive 19 disadvantage to its competitors in other states, if this 20 adjusted standard was not issued. 21 As I mentioned, I don't think 22 Crownline does not believe that the factors the Board 23 looked at are the same when they developed, in 1971, the 24 eight-pound-per-hour rule, as to what the factors are·

Keefe Reporting 

### Company 29

### 1 that are applicable to Crownline, as far as the adjusted 2 standard. The Board did not consider many factors that 3 it, obviously, could have, because of these developments 4 that have occurred since then. 5 I mentioned, also, that the adjusted 6 standard will have little impact on the environment 7 compared to the eight-pound-per-hour rule, and is also 8 reducing Crownline's emissions compared to what they 9 were before. Just the cost of tail stat controls,

.the 10 inability to use other alternatives means that, if 11 Crownline were to have to comply with the 12 eight-pound-per-hour rute, they would be, essentially, 13 putting themselves out of business just because of the 14 extra costs of $4 million to $6 million a year that just 15 cannot be added to the bottom line here by increasing 16 both stats. 17 It is Crownline's desire to continue 18 to operate in Southern Illinois. They are locally owned 19 and operated here, but I think I would be remiss if I 20 did not say that, if the adjusted standard is not 21 granted, that Crownline would be faced with tough 22 decisions, and one of those would be whether it could 23 move to another state where the eight-pound-per-hour 24 rule is not in existence. That's not Crownline's

Keefe Reporting Company 30recess? MR. GUARIGLIA: Before we do that, let**~e** just HEARING OFFICER: Thank you. Mr. Matoesian, do you have any questions? desire. They would prefer to stay right here in Southern Illinois, but it may make it difficult to do that, so thank you very much. That is all I have to say for now.

any No thank you. Ms. Liu, do you have MR. MATOESIAN: HEARING OFFICER: questions for Mr. Guariglia? MS. LIU: If it would be all right, Exhibit 1 i5 rather lengthy, and I would like to look it over. HEARING OFFICER: Would you like to take a short 1 2 3 4 5 6 7 8 9 10 11 12 13 

### 14 15 spend a minute just**~alking** through Exhibit 1,**an~** the 16 attachments on there. There are several· attachrr.ents. 17 The first is, as I mentioned**~e=ore,** 18 the revised language for the adjusted standard,**~hich** 19 Crownline has come to agreement on with the IEPA, and in 20 addition to complying with the MACT Standard, paragraph 21 A, essentially, says that we will also

-- Crownline will 22 continue to**inve~tigate** other ways and methods and 23 production that may lower our VOM emissions there, and, 24 also, the IEPA can request any reasonable test for

31 Keefe Reporting Company

### 1 Crownline to conduct in order to look at different 2 technologies or production materials that would also 3 lower VOM, so we have a continuing**obligatio~** 

### to do 4 that, and are' also going to agree to provide a report , , 

### 5 once a year to the IEPA as to what efforts we have' 6 taken, and what would be the results of those tests, 

### 7 Also attached -- the second thing 8 that's attached is I think a six-page document. The 9 first page is entitled "Exhibit 1." 

### The Order had asked 10 whether we had**~ounds-per-hour** 

### emission calculations for 11 our gelcoat and lamination area because, in'our 12 technical document, we did have 'those for small parts. 13 This document is those calculations. 14 Essentially, the last two pages show the pound-per-hour 15 based upon per boat model. You will see Exhibit 5 and 16 Exhibit 

### 6. We had not included those in.the technical 17**documen~** 

### because they were developed in the year 2000 18 based upon some old production data that, over time,' 19 Crownline realized was really not current data, and may 20 not have been as accurate as Crownline would like, so we 21 had not included this in the technical document. Since 22 the Order, specifically, asked if**~e** 

### had this, we are 23 providing it here, but we have put on notes on the 24 document indicating that there is some concern about its

Keefe Reporting Company 32

### 1 exact accuracy. We think that it probably**overes"i~ates** 

### 2 emissions. We have gone back -- Crownline, its 3 consultant, Advanced Environmental, has gone back, and 4 looked at several of the boat models since then,**a~j** 

### has 5 determined that, even though' these estimates do 6 overestimate some of the emissions, there will**s"i~l** 

### be 7 boat models that would still not comply with the 8 eight-pound-per-hour rule on a strict hourly basis. 9 The next document in the**hando~t** 

### is a 10 chart entitled, "Crownline Boats Emissions from SIall 11 Parts Production by Boat Model." One of the questions 12 was there was a similar chart in the technica,l c:>c'.,-,nent 13 that did not have units of measurement on it, anc "his 14 is just that same chart showing the units of measurement 15 that we had failed to include in the original char"" 16 And last, but not least, there's -- and I 

### apologize for 17 throwing all of this at you so quickly -- is one of the 18 questions in the Order was, "What is the half**li~i"?"** 

### 9r 19 "What is the MACT limit, emission limit, for Croom:'ine?" 20 And the way the MACT Standard is set up is it's g:>ing to 21 be based upon a different -- or it's going to vary 22 monthly, depending upon the type of gelcoats and the 23 resins you use, and it's based upon an equation "hat is, 24 used, so every month a different limit is produced.

Keefe Reporting Company 331 What we have done is included the 2 emissions and the half limits for che last six months 3 here on here. Now, on this cover sheet, it shows that 4 we have been in compliance with the**~~CT.** The 5 percentages here for compliance**stat~s** seen below that 6 is the percentage we are below our e2ission limit each 7 month, and then attached is the spreadsheets for each 8 month showing how we calculated thae emission 9 limitation, and, also, what our e2issions were. 10 So, hopefully, that helps a little bit' 11 ,in your review as to what these**dcc~cents** are, and we 12 would also be happy to answer any questions and

. 13 technical questions. I do have Crownline's consultant, 14 Andy Polcyn, who could better able answer these kind 

### of 15 detailed questions than I can. 16 -HEARING OFFICER: Thank-you. We.will take a 17 brief recess to allow Ms. Liu to review this document, 18 so we'll go off the record now. Thank you. 19 20 (A small break was taken at 1:06 p.m.) HEARING OFFICER: We'll go back on the record 21 now. Ms. Liu , do you have any:quescions for 22 Mr. Guariglia? 23 MR. LIU: Just a couple. I want to thank you 24 very much for the thoroughness of che exhibits you

Keefe Reporting**Corr,p~~y** 34in? provided in response to the Hearing Officer-ordered

No.1, you respond to question 5 A-I at the very bottom. MR. GUARIGLIA: Yes. have it in hand in writing, so thank you for that. I just had a couple questions, as I On page 7 of Hearing Exhibit I really appreciate it. It's very nice to

was going, through it. questions.

MS. LIU: In your response, you say that Crownline's pre-MACT emissions were, approximately, 204 tons of HA?s per year. I was wondering if that might have been a mispriht. I noticed in the technical document to the petition, Exhibit 3 of Appendix- 6 and Exhibit 4, they list the pre-MACT scenario and the MACT scenario with the total emissions per year, and I believe the pre-MACT number was 244.82 tons

.

, MR. GUARIGLIA: Could we have Mr.: Polcyn sworn

(At which point in the 'proceedings, Andrew Polcyn was sworn.)**HE~qING** OFFICER: Would you please state your

name before we begin. MR. POLCYN: My name is Andrew Polcyn with Advanced Environmental Associates, their consultant to' Crownline. The number of 244.82, is that what you're 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15



### • 16 17 18 19 20 21 22 23 24

35 Keefe Reporting Company

### 1 looking at, that Table l4? This is Exhibit 3 of 2 Appendix 6. 3 MS. LIU: Yes. 4 MR. POLCYN: Thls is strictly showing VOM. The 5 HAPs

-- there's a differentiation between HAPs, or' 6 hazardous air pollutants, and VOM. Not all HAPs are 7 VOM, so, consequently, you are going to have more VOM 8 because there are materials that are not hazardous, as 9 defined by USEPA, so, therefore, that's why you have got 10 a number of 244, or 245, let's say, for total VOM, 11 versus the HAPs that are just the hazardous fraction of 12 that. 13 MS. LIU: Thank you for clarifying that. Just 14 to follow up, I don't remember ever seeing a 15 differentiation in the tables of the total HAPs and the 16 total V0M's since the eight-pound-per-hoilr rule just 17 refers to VOM' s, in general. I kind of looked at it 18 this way. On page eight of the responses in Exhibit 1,: 19 Crownline estimates, in point five, that there is a 25 20 percent reduction in its HAPs emissions by complying 21 with the MACT Standard, and I was .Just wondering if you 22 could elaborate on which figures you, used to come up 23 with the 25 percent. 24 MR. POLCYN: The 25 percent is based on -- first

Keefe Reporting Company 36

### 1 of all, you have to look at the baseline, where do we 2 start from, and we were looking at data back from year 3 

### 20'00, I believe, as a starting point. In other '-lords, 4 looking at what the amount of HAP existed, as applied 5 pre-MACT"before MACT, such as in the resin and the 6 gelcoat, and then after compliance with the**~~CT,** 

### which 7 is the current scenario, what the differential would be 8 there, so, basically, we wound up using, initially, the 9 original data. So, for instance, just to go back where 10 we showed a difference of about a 50-ton reduction, that· 11 was looking at, actually we used the year 2003 data more 12 recently, the mix of boats to have a most representative 13 scenario of what's going on right now, and had Crownline' 14 been using the old resins, meaning the high-styrene 15 resins and gelcoats, then the emissions would have been 16 X so many tons. I can't remember what that number is 17 right off the top of my head, and then the current 18 ,scenario where they currently are is'SO tons less, 19 basically, so did that answer your question or did I 20 just confuse you more? 21 MS. LIU: You're going along the lines I'm ,22 thinking. I was just wondering if you could point me to

23 the numbers you use. Is the 204 your pre-MACT nurrber 24 minus 50 tons?

Keefe Reporting Company 371 MR. POLCYN: You are referring to which response 2 here? You said page eight? 3 

### A. Page eight, point**nur~er** five. The 4 response 6egihs, "Crownline estimates its**per~ent** , 5 reduction· in total HAP emissions at, approximately; 25 6 percent." 7 MR. POLCYN: Honestly, I don't recall. I would 8 have to take a look at that, but Dale may be -- hold on 9 one second. Let me grab that. 10 MR. GUARIGLIA: The**pre-~j}\.CT** would have been 204' 11 tons of HAPs and the MACT ·compliance would have been 12 153, or, basically, 154 tons rounded up, which would be 13 a difference of 50 tons. 14 MS. LIU: Does that happen to appear anywhere in 15 the exhibits or the petition? 16 MR. GUARIGLIA: We included it in the exhibits. 17 I don't believe it does in the sense that most of the 18 information we provided originally with the technical 19 document were based upon total VOM's, and the questions 20 in the order were related to HAPs, and so I don't know, 21 unless these would have that. We could provide that :to 22 you, if**yo~** would like, but I don't know that we have -- 23 I don't know that it· is in these materials. 24 MS. LIU: Would that be difficult to do?

Keefe Reporting Company 38for instance, M sub I is massive of open molds and resin of gelcoat, and used in the past 12 months of the MR. POLCYN: No. MS. LIU: That would be helpful, maybe in the post-hearing brief, or something like that. MR. GUARIGLIA: We could do it as a**follo~-up** to the hearing. That would be no problem at all

.. MS. LIU: One last question. In the back part of your Hearing Exhibit 1, the MACT Compliance Summary, the several tables that you provided by month on the calculated HAP emissions. I was wondering if ·you could elaborate on some of the abbreviations used in the column headings. There was a mass used, and then underneath it the letters "MI." And pounds per year. I

was wondering what "MI" stood for. MR. POLCYN: without going back to the MACT Standard, all of these items, "PEl" and "MI" those all

come from the MACT Standard, the equations, and I can pull that out. It's all -- that's included in the Title V permit, as well as -- let me find an equation. All the definitions -- it starts on 44234. All of the terms

are defined in -- I believe the ones you are talking about, M sub·I, it's in the federal register on page 1 

### 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 

### 22 23 24 44236. That's of the August 22,2001, pUblication, so

39 Keefe Reporting CompanyIt's just like other standards that exist right now. As an example, if you are applying paint, there's a paint rule where you are allowed to MS. LIU: Could you put that in this, as well, since we don't, actually, incorporate the Federal Register in the record for this hearing? That would be good to know, if it was a question that came up in the future. operation. N is the number of different open-molded resins used, and so forth. There's quite a few definitions that are in here, PVI. We didn't define those because' they are in the standard, but if you need that, we can certainly proviae that as an adjunct to the submittal.

calculations were done using the USEPA it's called point value averaging method to demonstrate compliance to, both, calculate the emission limit that Mr. Guariglia mentioned earlier that it's calculated on' a monthly basis, and then, once you do that, then you use another set of equations to determine are you, in fact, in compliance because the compliance is, basically, not so much total emissions, as it is emissions per pound of material applied. For the record, all. of the MR. POLCYN: 1 2 3

5 6 7 8 9 10 11 12 13 14 

### 15 16 17 18 19 20 21 22 23 24

40 Keefe Reporting Company1 have no more than so much in the amount of VOC's or 2 VON's in that material, and it's typically per gallon or 3 in some mass measure. 4 MS.**~IU:** Just out of curiosity, you don't 5 actually paint the boats. lt's a gelcoat? MR. POLCYN: Gelcoat is like painting, yes. 

### 6 7 It's an art, actually. If you do it wrong, it doesn't 8 look very good. You don't sell the boat. 

### 9 MR. GUARIGLIA: You paint it before you actually 10 build it, so it's a sprayed in the molds first. 11 MR. POLCYN: It's a pigmented type of resin, 12 but, basically, it's to provide the appearance of the 13 boat and the rest of the resin that's typically called 14 the production resin provides the strength of the boat, 15 whether it's the hull or the deck, the thickness that 16 would withstand the bumps and waves of Kentucky Lake or 17 Rend Lake. 18 MS. LIU: I do have one question for the Agency. 19 In their testimony, Crownline indicated that the Agency 20 was agreeable to its revised wording for the adjusted 21 standard. Do you support that that? 22 23 MR. MATOESIAN: Yes, we do. HEARING OFFICER: I will give the Agency an 24 opportunity to elaborate further on their position.

Keefe Reporting Company 41

### 1 MS. LIU: I was also wondering

-- they discussed 2 a little bit of history of what they thought the 3 eight-pound-per-hour rule was about, since it was 4 adopted so long agp. I was wondering if the Agency had 5 any additional information that they wanted to add·to 6 what Crown1ine interpreted. 7 MR. MATOESIAN: If we decide to put anything, 8 we'll just put it in the post-hearing brief. 9 MS. LIU: Thank you. 10 HEARING OFFICER: Is that it? 11 MS. LIU: That's it for me. 12 HEARING OFFICER: Okay. Mr. Guariglia, did you 13 have anything more you wanted to present? 14 MR. GUARIGLIA: No, we do not. 15 HEARING OFFICER: Would you like to move your 16 exhibits into evidence? I don't think we did that. 17 MR. GUARIGLIA: Yes, I would. I· would make a 18 motion to move my exhibits. 19 HEARING OFFICER: I assume there's no objection. 20 MR. MATOESIAN: No objection. 21 HEARING OFFICER: All of your exhibits, which I 22 believe are Nos. 1 through 8, are admitted. Thank you. 23 The Agency

-- you already touched upon 24 this

-- you don't have anything further you would like'

Keefe Reporting Company 42

### 1 to add at this time? 2 MR. MATOESIAN: No, we don't. 3 HEARING OFFICER: Well, before we hear closing 4 arguments, if· there are any, let's go off the record to 5 discuss a. transcript and briefing schedule. 6 (Discussion was held off the record.) 7 HEARING OFFICER: We've just had an 8 off-the-record discussion regarding the transcript and 9 post-hearing sUbmittals. The transcript of these 10 proceedings will be available from the court reporter by' 11 May 5, 2004, and will be posted on the Board's website. 12 The pUblic comment deadline is May 20, 2004. PUblic 13 comment must be filed in accordance with Section 101.628 14 of the Board's procedural rules. 15 The parties have decided to do a 16 concurr€nt.filing of their post-hearing submittals. 17 These are not going to be traditional briefs, but they 18 are actually going to be responsive filings to some 19 questions Alisa had, as well as any other final 20 arguments the parties wish to make. Those documents 21 will be due on May 14, and the Mailbox Rule will apply. 22· Mr. Guariglia, would you like to make 23 a closing statement? 24 MR. GUARIGLIA: No, I do not.

Keefe Reporting Company 43Keefe Reporting Company 441 STATE OF ILLINOIS) 2 COUNTY OF ST. CLAIR) SS 3 4 I, Holly A. Schmid, a Notary Public in , 5 and for the County of Williamson, DO HEREBY CERTIFY that 6 pursuant to agreement between counsel there appeared 7 before me on April 23, 2004, at the office of the West 8 Frankfort City Hall, Wesc Frankfort, Illinois, Mr. Dale 9 Guariglia, Mr. Andrew Polcyn, and Mr. Tim Claxton, who 10 were first duly sworn by me to testify the • ..**,~ole** truth 11 of their knowledge touching upon the above =atter so far 12 as they should be examined and their**examina~ion** was 13 taken by me in shorthand and afterwards**tra~scribed** upon 14 the typewriter (but not signed by the witnesses, and 15 16 17 18 said hearing is herewith returned. IN**WITN~SS** WHEREOF I have hereunto set my hand and affixed my Notarial Seal this Isc day of May, 2004. 19 20 21 22 23 24 

### OFFICIAL SEAL HOLLY

### A. SCHMID Notary Public, State of Illinois My Commission Expires 05-17-D6 Notary Public -- CSR 084-98-254587

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8 Keefe Reporting Company\ , IEPAATTACHMENT NO.J]

) ) ) ) ) 

### . ...t\ ILLINOIS POLLUTION CONTROL BOARD \: May 13, 2004 (") 

## -!-: q..:.t'\. 

## S;. 

# <;**'i~**



# % -:; '%-t:. AS 04-01 

### 'Y- <::3 0 (Adjusted

## Stanci?~ () (l -<l 

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?- (Q , CROWNLINE BOATS, INC. POST HEARING RESPONSE**~.** 

## S;. OnApril 23, 2004, a hearing in this matter was held at the City Hallin West Frankfort, IN THE l\1ATTER OF: PETITION OF CROW'NLINEBOATS, INC. FORAN ADJUSTED STANDARD FROM 35 ILL ADM, CODE 215.301

Illinois. At the conclusion ofthe hearing, the representative from the Illinois Pollution Control Board, Ms. AlisaLiu, requested Crownline Boats, Inc. ("Crownline") to provide three additional pieces ofinformati.on. This pleading shallprovide the additionalinformation requested from Crownline at the hearing.

First, Miss Liurequested Crownline to provide definitions for the terms used in the monthly l'viACT compliance spreadsheets attached to the pleading Crownline enteredinto evidence atthe hearing entided "Responses ofCrownline Boats, Inc. to Questions in Hearing Officer Order of April 6, 2004." As explained at the hearing, the terms used in the spre,a'dsheets were taken from d,e federal rule entided "National Emission Standards for Hazardous 

### Air Pollutants for Boat Manufacturing", 40 CFRPart 63, SubpartVVVV (the "l\,1ACT Standard',). Attached atExhibitA

are pages 44233-44235 from theAugust 22, 2001, Federal Registerwhen the MACT Standardwas finalized, which sets forth the definitions ofthe terms used in Crownline's MACT compliance spreadsheets.

Second, at the hearing Crownline presented to the Courtrevised language for its proposed Adjusted Standard, which IEPA also expressed their supportfor at the hearing. Attached atExhibit B is a copy ofCrownline's revisedAdjusted Standardlanguage.

1837122Third, inits pleading "Responses ofCrownline Boats, Inc. to Questions in Hearing Officer's OrderofAprilG, 2004", Crownline stated thatits emissions ofHazardous AirPollutants ("HAPs") prior to complyingwith the MACT standard were approximately 204 tons peryear. Crownline also estimated thatit had·reducedits HAP emissions by approximately 50 tons peryear (a reduction of 

### , approximately 25%) by complyingwith the MACT

### St~ndard. (See responses to questions 2(b) and 7(a»

.. Atthe hearing, Miss Liu asked ifCrownline couldprovide additional informationregarding the 50 ton/25% reduction in HAPs. Attached hereto and labeled as Exhibits C and D are two spreadsheets showing 12-monthrolling total airemissions. ExhibitC identifies that as ofDecember 2003, Crownline's 12-monthrolling HAP emissions were 153.91 tons. This amountrepresents. Crownline's estimated actual emissions on a 12-monthrolling average as ofDecember2003 while beingin compliancewith the JYIACT Standard. ExhibitD is an estimate ofwhat Crownline's emissions would have beenifitmade the exact same number ofboats andboatmodels as in Exhibit C, butwas not complyingwith the JYIACT Standard. ExhibitD identifies that Crownline's 12-· month rollingHAP emissions would have been approximately 204.18 tons peryearifithad not been complyingwith the**};~IACT** Standard.

The above information should satisfy the requests made

# ofCrownline attheApril 23, 2004 hearing.

18371221837122 BRYAN CAVE,LLP

By:

# f)~,4r;z/~ Dale A. Guariglia Bryan CaveLLP One t>Ietropolitan Square Suite 3600 St. Louis, MO 63102 314/259-2606 daguariglia@b.t;yancave.com Attorneys for Crownline Boats, Inc.CERTIFICATE OF SERVICE Itis hereby certified that true copies ofthe foregoing response were mailed, first class, on May 13, 2004, to each offollowing persons: CarolSudman, Hearing Officer, Illinois Pollution· ControlBoard, 1021 North Grand Avenue East, P.O. Box 19274, Springfield, IL 62794-9274; Dorothy M. Gunn, Illinois Pollution Control Board,James R. Thompson Center, 100W. Randolph Street, Suite 11-500, Chicago, IL 60601, and Charles Matoesian, AssistantCounsel, IEPA,**~021** North Grand Avenue East, P. O. Box 19276, Springt;ield, IL 92794-9276.

1837122

### ,



### -- Al\prll 1.j, 1.VV4, 

### ExhibitA

Federal Register/Vol. 66, No. 163 /Wednesday, August 22, 2001/Rules and Regulations 44233 (d) This subpart does not apply to aluminum coating operations on aluminum boats intended for commercial or military (nonrecreational) use, antifoulant coatings, assembly adhesives, fiberglass hull and deck coatings,research and development activities, mold sealing and release agents, mold stripping and cleaning solvents, and wood coatings as . defined in § 63.5779. This subpart does nol apply to materials contained in handheld aerosol cans. - § 63.5686 How do I demonstrate that my facility is not a majorsource?

You can demonstrate that your facility is not a major source by using the procedures in either paragraph (a) or (b) ofthis section.

(a) Emission option. You must demonstrate that yourfacility does not emit, and does not have the potential to emit as defined in § 63.2, considering federally enforceable permit limits, 9.1 megagrams (10 tons) ormore peryear of a single HAP or 22.7 megagrams (25 tons) ormore peryear ofa combination ofHAP. To calculate yourfacilHy's potential to emit, you must include emissions from theboat manufacturing facility and all other sources that are collocated and under common ownership or control with the boat manufacturing facility.

(b) Material consumption option. This option canbe used i£'you manufacture eitherfiberglass boats qr aluminum recreational boats at yourfacility. You must meet the criteria in paragraph (b)(l), (2), or (3) ofthis section and comply with the requirements'in paragraph (c) ofthis section. !fjrou**~_** initially rely onthe limits and criteria specified in paragraph (b)(l), (2), or (3) ofthis section to become an area source, but then exceed the relevant limit (without first obtaining and complying with otherlimits that keep your potential to emit HAP below major source levels), your facility will then become a major source, and you must comply with all applicable provisions of this subpartbeginning on the compliance date specified in § 63.5695. Nothing in this paragraph is intended to preclude you from limiting your facility's potential to emit through other federally enforceable mechanisms available through your permitting authority.

(1) Ifyour facility is primarily a fiberglass boat manufacturing facility, you must demonstrate that you consume less than 45.4 megagrams perrolling 12- month period ofall combined polyesterand vinylester-based resins and gel coats (including tooling and production resins and gel coats, and cleargel coats), and you must demonstrate that at .least 90 percent oftotal annual HAP emissions at the facility (including emissions from aluminumrecreational boat manufacturing orother source categories) originate from the fiberglass boat manufacturing materials.

(2) Ifyour facility is primarily an aluminum recreational boat manufacturing**facility,~you** must demonstrate that it consutnes less than 18.2 megagrams perrolling lz-month period ofall combined surface coatings, aluminum wipedown solvents, application gun cleaning solvents, and carpet and fabric adhesives; and you must demonstrate that at least 90 percent oftotal annual HAP**emission~** at the facility (including emissions from fiberglass boat manufacturing orother source categories) originate from the aluminum recreational boat manufacturing materials.

(3) Ifyourfacility is afiberglass boat or an aluminum recreational boat .' manufacturing facility, you must demonstrate that the boat manufacturing materials consumed per rolling] 2- month period contain atotal ofless than 4.6 megagrams ofany single HAP and less than 11.4 megagrams ofall combined HAP, and you must demonstrate that at least 90 percent of total annual HAP emissions atthe facility (including emissions from other source categories) originate from these boatmanufacturingmaterials.

(c) Ifyou use the material consumption option described in paragraph (b) ofthis section to demonstrate thatyou are nota major source, you must comply with the requirements ofparagraphs (c)(l) through (3) ofthis section.

(1) Ifyour facility has HAP emissions that do not originate from boat manufacturing operations ormaterials described in paragraph (b), thenyou mustkeep any records necessary to demonstrate that the 90 percent criterion is met.

(2) A rolling 12-month period includes the previous 12 months of operation. You must maintain records of the total amount ofmaterials described in paragraph (b) ofthis section used

. each month, and, ifnecessary, the HAP content ofeach material and-Lle calculation ofthe total HAP consumed each month. Becauserecords are needed for a**12~month** period, you mustkeep records beginning no laterthan 12 months before the compliance date specified in § 63.5695. Records mustbe kept for 5 years afterthey are created.

l3) In determining whetherthe 90 percent criterion included in paragraph (b) ofthis section is met, you do not need to include materials used in routinejanitorial, building, or facility grounds maintenance; personal uses by employees or otherpersons; or products used for maintaining motorvehicles operated by the facility. § 63.5689 Whatparts ofmy facility are covered by this subpart?

. The affected sotirce (the portion of yourboat manufacturing facility covered by this subpart) is the combination ofall ofthe boat manufacturing operations listed in

. paragraphs (a) through (I) ofthis section.

(a) Open molding resin and gel coat operations (including pigmented gel coat, cleargel coat, production resin, tooling gel coat, and tooling resin).

(b) Closed molding resin operations. (c) Resin and gel coatmixing operations.

(d) Resin and gel coat application equipment cleaning operations.

(e) Carpet and fabric adhesive operations.

. _.

(f) Aluminum hull and deck coating operations, including solventwipedown operations and paint spray gun cleaning operations, on aluminum recreational boats. § 63.5692 How do I knowifmy boat manufacturing facility is anew source or an existing source?

(a) Aboatmanufacturing facility is a new source ifit meets the criteria in paragrapbs (a)(l) through (3) ofthis section.

(1) You commence construction ofthe affected source afterJuly 14, 2000.

(2) It is a major source. (3).It is a completely new boat manu"facturing affected source where no otherboat manufacturing affected source existed priorto the construction ofthe new source.

(b) Forthe purposes ofthis subpart, an existing source is any sourCe that is not a new source. § 63.5695 When mustIcomplywiththis subpart?

You must comply with the standards in this subpart by the compliance dates specified in Table 1 to this subpart. Standards for Open Molding Resin and Gel CoatOperations § 63.5698 What emission limit must! meet foropen molding resin and gel coat operations?

(a) You must limit organicHAP emissions from the five open molding operations listed in paragraphs (a)(I) through (5) ofthis section to the emission limit specified in paragraph (b) ofthis section. Operations listed in· paragraph (d) are exempt from this limit.

(1) Prodl.:'-ction resin.44234 Federal Register/Vol. 66, No. 163/Wednesday, August 22, 200l/Rules and Regulations (2) Pigmented gel coat. (3) Cleargel coat. (4) Tooling resin. (5) Tooling gel coat. (b) You must limit organic HAP emissions from open molding operations to the limit specified by equation 1 ofthis section, based on a 12· month rolling average.

HAP Limit = [46(MR)+I59(M PG)+291(M CG)+54(M TR ) +214(M TG

## )J (Eq. I)

Where: HAP Limit= total allowable organic HAP that canbe emitted from the open molding operations. kilograms. MR = mass ofproductionresin used in the past 12 months. excluding any materials exempt underparagraph (d) ofthis section, megagrams. M"G = mass ofpigmented gel coat used in the past 12 months. excluding any 'materials exempt under paragraph (d) ofthis section. megagrams. MeG = mass ofcleargel coat used in the past 12 months, excluding any materials exempt under paragraph (d) ofthis section, megagrams. M TR = mass oftooling resin used in the past'12 months, excluding any materials exemptunder paragraph (d) ofthis section, megagrams. M TG = mass oftooling gel coatused in the past 12 months, excluding any materials exempt underparagraph (d) ofthis section, megagrams. (c) The open molding emission limit. is the same for both new and existing sources.

(d) The materials specified in paragraphs (d)(l) through (3) ofthis section are exemptfrom the open molding emission limit specified in paragraph (b) ofthis section.

(l) Production resins (including skin coat resins) that must meet specifications for use in military vessels ormustbe approved by the U.S. Coast Guard foruse in the construction of lifeboats, rescue boats, and other lifesaving appliances approved under46 CFR subchapter Q or the construction of small passengervessels regulated by 46 CFR subchapterT. Production resins for which this exemption is used must be applied with nonatomizing (non-spray) resin application equipment. You must keep a record ofthe resins forwhich you are using this exemption.

(2) Pigmented, clear. and tooling gel coat used forpart or mold repairand touch up. The total gel coat materials included in this exemption must not exceed 1 percent by weight ofall gel coat used at yourfacility on a lZ·month roIIing·average basis. You mustkeep a record ofthe amount ofgel coats used per month for which you are using this exemption and copies ofcalculations showing thatthe exempt amount does not exceed 1 percent ofaU gel coatused.

(3) Pure, 100 percent**v~nylester** resin used for skin coats. This exemption does not apply to blends ofvinylester and polyesterresins used for skin coats. The total resin materials included in the exemption cannot exceed 5 percentby weight ofall resin used at yourfacility on a 12·month rolIing·average basis. You must keep arecord ofthe amout:lt of100 percent vinylesterskin coatresin used permonth thatis eligible forthis exemption and copies ofcalculations showing thatthe exempt amount does not exceed 5··percent ofall resin used. § 63.5701 What are my options for complying with the open molding emission limit?

You mustuse one ormore ofthe options listed in paragraphs (a) through (c) ofthis section to meetthe emission limit in § 63.5698 forthe resins and gel coats used in open molding operations at yourfacility.

(a) Maximum achievable control technology(MACTi modelpoint value averaging(emissions averaging) option.

(l) Demonstrate that emissions from the open molding resin and gel coat**op~rations** that you average meet the emission limit in § 63.5698 using the procedures described in § 63.5710. Compliance with this option is based on a lZ-monthrolling average.

(Z) Those operations and materials not. included inthe emissions average must comply with either paragraph (b) or(c) ofthis section.

(b) Compliantmaterials option. Demonstrate compliance by using resins and gel coats that meetthe organic HAP contentrequirements in Table 2 to this subpart. Compliance with this option is based on a lZ-monthrolling average.

(c)Add·on:controloptidn. Use an enclosure and add·on control device, and demonstrate thatthe resulting emissions meet the emission limit in § 63.5698. Compliance with this option is based on control device performance testing and control device monitoring. § 63.5704 Whatare the general requirements forcomplyingwith the open molding emission limit?

(a) Emissions averaging option. For those open molding operations and materials complying using the emissions averaging option, you must demonstrate complianceby performing the steps in paragraphs (a)[l) through (5) ofthis section.

(1) Use the methods'specified in § 63.5758 to determine the organic HAP content ofresins and gel coats.

(2) Complete the calculations described in § 63.5710 to show thatthe organic HAP emissions do not exceed the limit specified in § 63.5698.

(3) Keep records as specified in paragraphs (a)(3)(i) through (Iv) ofthis section for eachresin and gel coat.

(i) Hazardous air pollutant content. (ii) Amount ofmaterial used per month.

.

(iii) Application method used for production resin and tooling resin. This record is not required ifall production resins and tooling resins are applied with nonatomized·technology.

(iv) Calculations performed to demonstrate compliance based on MACT model point values, as described in §63.5710.

(4) Prepare and submittbe implementation plan described in § 63.5707 to the Administrator and keep it up to date.

(5) Submit semiannual compliance reports to the Administrator as specified in § E;3.5764.

(b) ·Compliantmaterials·option.**F~r** each open molding operation complying usingthe compliantmaterials option, you must demonstrate complianceby performing the steps in paragr.aphs (b)(l) through (4) ofthis section.

(1) Use the methods specified in § 63.5758 to determine the organic HAP content ofresins and gel coats.

(2) Complete the calculations described in § 63.5713 to show that the weighted·average organic HAP content does not exceed the limit specified in ·Table Zto this subpart. (3) Keep records as specified in paragraphs (b)(3)(i) through [iv) ofthis section for each resin and gel coat.

(i) Hazardous airpollutant content. (ii) Application method for·

. productionresin and tooling resin. This record is notrequired ifall production resins and tooling resins are applied with nonatomized technology.

(iii) Amount ofmaterial used per month. This record is notrequired·for an operation ifall materials used for that operation comply with the organic HAP content requirements.Federal RegisterI Vol. 66, No. 163 /Wednesday, Au-gust 22, 20011 Rules and Regulations 44235 (iv) Calculations performed, if required, to demonstrate compliance based on weighted-average organic HAP content as described in § 63.5713.

(4) Submit semiannual compliance reports to the Administrator as specified in § 63.5764.

(e) Add-on controloption. Ifyou are using an add-on control device. you ' must demonstratecomplianceby performing the steps in paragraphs (c)(l) through (5) ofthis section.

(1) Conduct a performance test ofthe control device as specified in §§ 63.5719 and 63.5722 to demonstrate initial compliance.

(2) Use the performance test results to determine control device paramelers to monitor afterthe performance test as specified in §63.5725.

(3) Comply with the operating limits specified in § 63.5715 and the control device and emission capture system monitoring requirements specifie"i:l in § 63.5725 to demonstrate continuous compliance.

(4) Keep the records specified in § 63.5767.

(5) Submit to the Administratorthe notifications and reports specified. in §§ 63.5761 and 63.5764. § 63.5707 Whatis an implementation plan for open molding operations and when do Ineed to prepare one?

(a) You must prepare an implementation plan for all open moldingoperations for which you comply by using the emissions averaging option described in § 63.5704(a).

(b) The implementationplan must describe the steps you wHI take tobring the open molding operations covered by this subpart into compliance. For each operation included in the emissions average, yourimplementation plan must include the elements listed in paragraphs (b)(1) through (3) ofthis section.

(1) A description ofeach operation included in the average.

(2) The maximum organic HAP content ofthe materials used, the application method used (ifany atomizedresin application methods are used in the average), and any other methods used to control emissions.

(3) Calculations showing that the operations covered by the plan will comply with the open molding emission limit specified in § 63.5698.

(c) You must submit the implementation plan to the Administratorwith the notification of compliance status specified in § 63.5761.

(d) You must keep the implementation plan on site and provide it to the Administratorwhen asked.

(e) Ifyou revise the implementation plan, you must submit the revised plan with yournext semiannual compliance report specified in § 63.5764. § 63.571 0 How do Idemonstrate compliance using emissions averaging?

(a) Complianceusing the emissions averaging option is demonstrated on a 12·month rolling-average basis and is determined at the end ofevery month (12 times peryear). The first 12-month rolling·average period begins on the compliance date specified in § 63.5695.

(b) At the end ofthe twelfth month afteryourcompliance date and at the end ofevery subsequent month, use equation 1 ofthis section·to dem.onstrate that the organic HAP emissions from those operations included in the average do not exceed the emission Iimit in § 63.5698 calculated for the same 12- month period. (lnelude terms in equation 1 of§ 63.5698 and equation 1 ofthis section for only those operations and materials included in the average.) (Eq. I)

Where: PVop=weighted-averageMACfmodei point value for each open molding operation (PVR, PVPG,PVCG, PVPVTR, and PVPVTG) included in the average, kilograms ofHAP per megagram ofmaterial applied. Mj=mass ofresin orgel coat iused within an operationin the past 12 months, megagrams. PVTG= Weighted-average MACfmodel point value for toolinggel coatused in the past 12 months, kilograms permegagram. MTG= Mass oftooling gel coat used in the past 12 months, megagrams. (c) Atthe end ofevery month, use equation 2 ofthis section to compute the weighted-average MAC!'model point value for each open molding resin and gel coat operationincluded in the average. Where: HAP emissions= Organic HAP emissions calculated using.MACT model point values for each operation included in the average, kilograms. PVR

### =Weighted·average 1v1ACT model pointvalue for production resin used in the past 12 months, kilograms permegagram. MR= Mass ofproduction resin used in the past 12 months, megagrams. PVpo= Weighted-average MACTmodel point value for pigmented gel coat used in the past 12 months, kilograms permegagram. Mf>G= Mass ofpigmented gel coat used in the past 12 months, megagrams. PVco= Weighted-average MACTmodel point value for cleargel coat used in the past 12 months, kilograms per megagram. MeG= Mass ofcleargel coatused in the past 12 months, megagrams. PVTR= Weighted-average MACTmodel point value for tooling resin used in the past 12 months, kilograms per megagram. MTR= Mass oftooling resin used in the past 12 months, megagrams. 

### " L(MiPVi) H (Eq. 2) n=number ofdifferent open molding resins and gel coats used within an operation in the past 12 months. PVj=the MACfmodel point value for

,. resin orgel coatiused

....ithin an

operationin the past 12 months, kilograms ofHA.P permegagram of material applied. (d) You must use the equations in Table 3 to this subpartto calculate the MACfmodel point value (PVj) for each resin and gel coatused in each operation in the past 12months.

(e) Ifthe organic HAP emissions, as calculated in paragraph(b) ofthis section, are less thanthe organic HAP limit calculated in § 63.5698(b) for the same 12-monthperiod, then you are in compliance with the emission limit in § 63.5698 for those operations and ma,terials included in the average. § 63.5713 Howdo Idemonstrate compliance using compliantmaterials?

(a) Complianceusing the organic HAP contentrequirements listed in Table 2 to this subpart isbased on a 12-month rolling averagethat is calculated at-the end ofevery month. Thefirst 12-month rolling-average period begins on the compliance date specified in § 63.5695.

### 8April 23, 2004 

### Exhibit B CROWNLINE BOATS, INC. REVISED ADJUSTED STANDARD LANGUAGE

As an alternative to complian'ce with the 8 lblhr Rule found at 35 lAC 

### § 215.301, this adjusted standard allows Crownline to limit its discharge o( organic material into the atmosphere from its boatmanufacturing oper"ations by operating in full compliance with the National Emission Standard for Hazardous Air Pollutants for New and Existing Boat Manufacturing Facilities, set forth at 4'0 CFR §63 SubpartVVVV, as may be amended in the future, andwith the following conditions:

a. Crownline shall continue to investigate boat production methods with a reduced VOM content and, where practicable, shall substitute current coatings with lower VOM content cOatings as long as such substitution does notresult in a netincrease in VOM emissions. Crownline shall be required to do any reasonable test of new technologically or economically reasonable production methods or materials applicable to the open-mold fiberglass boatmanufacturingindustry which may reduce VOM emissions at Crownline's facility which the Illinois EPA Bureau of Air specitically requests in writing that they do. An annual report summarizing the activities and results ofthese investigatory efforts shall be prepared by Crownline and submitted to the Illinois EPA Bureau of Air, Compliance and Enforcement Section. b. The relief granted in this proceeding shall be limited to the emission activities at the CrownlineWestFrankfort facility as ofthe date ofthis filing

c. Nothing in this adjusted standard shall relieve Crownline ofits duty to operate in full compliancewith the Clean Air Act, its CAAPP, the Illinois EnvironmentalProtection Act and other applicable regulations not otherwise discussed herein.

.

1817792

# c

### Crownline Boats, Inc.- Monthly Emissions Summary 12-Month Rolling Total 5/13/04 Exhibit C5113104 Exhibit C

Monthly Dec.Q31 Nov-031

. Oct-031 sep-031 Aug-031 Jul-031 Jun:031 May-031 Mr.()3/ M"r:031 F"b-03L.Jan-03LDec.Q21

< Xylene (tons)

MEK lions'**12~Month** Roiling Total Xylene (tons) 0.01/

0.75/ 0.011

0.84/ 0.09/

1.01! 0.071

0.98! 0.16/

0.98! 0.05/

0.92! 0.111

0.94! 0.05/

0.83! 0.051

0.78! 0.11/

0.73/ 0.04/

0.62! 0.10/

0.S8! 0.091

OA8!

MEK (tOI1S Monthly Dec.Q31 Nov.Q31 Oct-031 Sep.Q31 Aug-031 Jul.Q31 Jun:031 May,031 AQr.Q31 M",:031 F"b.Q31

__**Jan-o~'--Dec.Q21** 

### 0/ 0.01/ 0.011 0.011 0.01 1 001/ 0.01! 0.01/ 0.011 0.01! 0.01/ 0.10/ 0.00/Nov-02 Ocl.o2 Sep.o2 Aug.o2

15.32 17.19 13.49 21.86 12.93 15.16 11.79 19.16

313 268 254 323

Nov-02 Oct-02 Sep..Q2 Aug-02

9.08 12.01 8.56 15.36 2.31 2.02 1.71 3.08

Nov·02 Oct-02 Sep-02 Aug..Q2

1.06 0.79 1.22 0.41 0.01 0.00 0.00 0.00 Jul.o2 Jun-02 May.o2 Apr.o2 Mar·02 Feb-02 Jan·02

13.97 18.30 19.95 17.04 14.17 14.20 12.22 11.80 15.78 16.89 14.96 12.23 12.59 10.6.0

323 400 452 320 305 269 247

JUI-02

9.04 1.76

Jul.o2

0.72 0.00 5/13/04 Exhibit Cz z z 0 0 0 0 0 < 0 0 

## b 0 < 

# " 

# '" 6 !:; 

# " ':1 6 0 

### '" m 

### '" '" '" 0 0 0 0 0 n !" 0 !:l. !" 0 !:l. 

# " 

# '" ;;; 

# " 6 

### ':1 6 0 

## '" '" '" '" '" '" C1l C1l C1l Q 0 0 'C !" 0 'C 0 0 'C 

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# '" 6 

# " 6 0; 

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### '" 0 

### "" 

### '" '" :» 

# " " c c c 0 0 

### '" 0 

### '" 0 0 

### '" 

# " ':1 6 

# " 6 :.... 

### ':1 6' 0 

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'- '- '- 0 0 c !" 0 c 0 0 c 

# " " b 

# " b 

# " " b 0 0 

### '" 0 

### "" 

## '" '" N 

### '"

## ,5113104 ExhibitD 

### Crownline Boats, Inc. Monthly Emissions Summary If Crownline Was Not Complying with MACT' 12-Month**Rollin~** Total Oec-031 Nov-031 oct-031 sep-031 Aug-03!**JUI-03L_~un-031** May-o.1 Apr-031 Mar-031 Feb-031 Jan-031 oec-021 Monthly 10.111 17.331 23.531 27.071 23.951 18.691 20.421 25.791 23.271 23.771 20.181 19,251 13.391

Oec-031 Nov-031 oCl-031 sep-031 AU9-031 Jul-031 Jun'.o31 May-031 Apr-031 Mar-031 Feb-031 Jan-031 Oec-021 Monthly Toluene (Ions) 0,05! 0.23! 0.83! 1.88! 0.261 0.85! 0.83! 0.87! 0,67! 0.76! 0,78! 1,27/ 0.441 Hexane tons 0 12-Month Roiling Total 8,011 9,231 10,501 10.461 9,80! 9.951 9.821 8.991 8.121 7.451 6.691 5.91! 4.641

'This chart was-prepared loeslimate what Crownline's airemissionswould have been if It made the same number and models of boats as it did In the months shown, but Crownllne was not complying with 40 CFR Part 63, Subpart VVW (the "MACr"),5/13/04 ExhibitD Doc-03!

_ Nov-03! (jct-031 Sop-03! Aug-03! Jut-03! Jun-03! May-031**J\P-'-Q~I Mar-03LE~~-03!**  Jan-03!_[)",,-o?! Monthly DMP (Ions) DB? (Ions 12-Month Roiling Total OMP (tons) DBP (tons Monthty

MEK (tons 12-Month Rolling Total 0.011 0.011 0·D11 0.011 0,011 0,011 0,011 0.011 0,021 0,011 0.021 0,011 0.001 01 01 0,16! 0,151 '0.081 

### I I 

### I I I I 

### ! 

### I

0.1 31 0.131 0.131 0.131 0.1 31 0.1 31 0.141 0.1 31 0.121 0.101 0,091 0.071 0,061 1.401 1.481 1.691**1~651** 1.601 1.641 1.481 1.331 1.211 1,031 0.941 0,711 0.63! 00c-03\ Nov-03\ Oct-03\ Sop-OJ! Aug-03\ Jut.03\ Jun-03\ May.03\ Apr-03\ Mar-03\ Feb-03\ Jan-03\ Oec-02\

0.01 1 0.011 0,091 0.071 0.161 ' 0.051 " q.111 0.051 0,051 0.111 0.041 0.101 0.091

Xylene (tons)

MEK (tons 0.75! 0,841 1.011 0.98! 0.98! 0.92 1 0.94! 0,83! 0,78! 0.73! 0,62! 0.58! 0.481

Monthly Oec-031 Nov-031 Oct.031**S.p.0~LAug-03!** ----"ul.03!**Jun-~L_May-031 Apr-O~I**  .. Mar-031 Feb-03jJan-031 Oec-021

Cumene (tons) 01 0.011 0.011 0.011 0.011 0.011 0,011 0.01 1 0.011 0.011 0.011 0.101 0.001

Other (tons) I 0 12-Month Roiling Total Cumene (tons) 0.101 0.201 0.201 0,201 0.201 0.201 0.191 0.181 0.171 0.161 0.151 0.141 0.041

Other (tons)1 0,00Nov-02 Oct-02 Scp-02 Aug-Q2

15.32 17.19 13.49 21.86 12.93 15.16 11.79 19.16

313 268 254 323

Nov-02 Oct-02 Scp-Q2 Aug-02

9.08 12.01 6.56 15.36 2.31 2.02 1.71 3.06

Nov#02 Oct-QZ Sep-02 Aug-02

1.06 0.79 1.22 0.41 0.01 0.00 0.00 0.00 Jul-02

13.97 11.60

323

Jul-02

9.04 1.76

Jul-02

0.72 0.00 5/13/04 ExhibitD5/13/04 Nov-Q2 Oct-02 Sep-Q2 Aug-Q2 Jul..Q2 ExhibitD

0.01 0.01 0.01 0.01 0.02 0.16 0.12 0.10 0.12 0.08

Nov-02 Oct-02 Sep-02 Aug-02

0.09 0.06 0.07 0.10 021**0~2 O~O** **0~6 Nov~02**  Oct·02**Sep~02** Aug·02

0.01 0.01 0.01 0.01 0.00 0.00 0.00 0.00 Jul-02



### om 0.10

Jul-02

0.00 0.00.' , , 

# , Iy IEPAATTACHMENT NO._



### BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF: PETITION OF CROWNLINE BOATS, INC. FORANADJUSTED STANDARD FROM 35 ILL. ADM. CODE 215.301 ) ) )



### . )



### , ) 

### AS 04-01 (ADJUSTED STANDARD

- AIR)



### NOTICE

TO: Dorothy Gunn, Clerk Illinois PollutionControl Board James R. 

### Thompson Center 100 W. Randolph Street, Suite 11-500 Chicago, Illinois 60601 Carol Sudman, Hearing Officer I1linois Pollution Control Board 1021 North GrandAvenue East P.O. Box 19274 ' Springfield, I1linois 62794-9274 Dale A. 

### Guariglia BryanCave, LLP OneMetropolitan Square 211 NorthBroadway, Suite 3600 St. Louis, MO 63102-2750

PLEASETAKE NOTICE thatIhave filed with the Office ofthePollution Control Boardthe RESPONDENT'S POST-HEARINGBRIEF onbehalfofthe Illinois Environmental ProtectionAgency, a copy ofwhichis herewith sen::edupon you.

Date: May 14,2004 ILLINOIS ENVIRONMENTAL PROTECTIONAGENCY**BY:~=::::::?::""=::::"--,--....6::":::::::""":"4~­** 

### Charles E. Matoesian AssistantCounsel Division ofLegal Counsel

1021 North GrandAvenue East P.O. Box 19276

. Spring field, IL 62794-9276 217/782-5544 THIS FILINGIS SOBMITTED ON RECYCLED PAPER

### BEFORE THE ILLINOIS POLLUTION CONTROLBOARD INTHE MATTEROF: PETITION OF CROWNLINEBOATS, INC. FORAN ADJUSTED STANDARD FROM 35 ILL. ADM: CODE 215.301 ) ) ) ) ) ) 

### AS 04-01 (AdjustedStandard-Air)



### RESPONDENT'S POST-HEARING BRIEF 

### NOW COMES the Illinois Environmental ProtectionAgency ("Illinois EPA" or "Agency") byits attorney, Charles E. Matoesian, andhereby submits its Post-Hearing Briefwiththe Illinois poliution Control Board ("Board") in this matter. In supportoftrus Post-Hearing Brief, the llIinois EPA states as follows:

I. Crownline, Inc. ("Crownline") filed itsPetition forAdjusted Standard ("Petition")

onDecember4, 2003, pursuant to Section 28.I ofthe Illinois Environmental Protection Act ("Act"), 415 ILCS 5/28.1, and the regulations ofthe Board at 35 III. Adm. Code Section 104.402. The Petition requests that the Board giant Crownline an adjusted standard from 35 III. 

### Adm. Code Section 215.301, the Use ofOrganic Material Rule, better known as the "8 Iblhr Rule" as it applies to the emissions of volatile organic material (''YOM'') from Crownline's WestFrankfort, Illinois, boatmanufacturing facility

.



# . 2. 

### On February 5th,: 2004, the Board found that the Crownline petition met the requirements of35 III. 

### Adm. Code Section 104.406 andacceptedthe matterforhearing. 3. 

### OnoraboutJanuary20th, 2004, the Illinois EPA filed its recommendation withthe Boardrecommending thatthe Board GRANTthePetition forAdjusted Standard.

I4. A hearing was held on this matteron April 23rd, 2004. Testimonywas presentedby Mr. Dale Guariglia, Mr. James Claxton and Mr. AndyPolcyn forPetitioner. Certain questions were posed byMs. Alisa Liu oftheBoard'stechnical staff. The Hearing Officer, Ms. Carol Sudman, determined that the qu.estions shouldbe addressedbythe parties in theirpost-hearing briefs. See Transcriptp. 42,Lines 7 - 21. 5. The questions wereprimarily directed at clarifyingpoints in the Petitioner's Brief. This replyis concerned solelywith the few questions addressed to the Illinois EPA. 6. On page40 oftheTranscript, lines 19 through 21, Ms. Liu asks 

### Mr. Matoesian "[i]ntheirtestimony, Crownline indicatedthatthe Agencywas agreeable to its revised wording for the adjusted standard. Do you supportthatthat?" The Illinois EPA states in elaboration ofits answer athearing thattheAgencyhas come to anagreementwith the Petitioneroverthe wording ofthe AdjustedStandard and supports the granting ofthe Adjusted Standardbased on the language submitted athearingbythe Petitioner. This language has been added to 

### CrownlineBoats, Inc. PostHearingResponse atExhibitB. 7. OnpageAl ofthe Transcript, lines 1 through 6, Ms.,tiu asks iftheTIlinois EPA has any additional information concerning the 8 lblhrrulethatitwould like to add to "what Crownline interpreted." The Illinois EPA agrees with Crownlinewhen it states that when theBoard enactedthe 8 Iblhrrule the Boarddidnot, and couldnot, have anticipated Crownline's particular situation especiallywhentheneweremissions factors establishedbythe U.S. EPA are considered. 8. As the schedule for filing the Post-Hearing Briefs was concurrent, the lllinois

. EPAreserves the right to provide additional answers and clarifications shouldthe

.



### 2

### Petitioner's Post-Hearing Briefcontainmatter found objectionable orrequiring clarification.

WHEREFORE, for the reasons statedherein, the Illinois EPA recommends that Crownline's Petition for an Adjusted Standard be granted. Respectfully Submitted, ILLINOIS EVIRONMENTAL 

### PROTECTIONAGi/

# BY~ . 

### Charles E. Matoeslan Assistant Counsel DivisionofLegal Counsel

DATED: May 14, 2004 1021N. GrandAve. East P.O. Box 19276 Springfield, Illinois 62794-9276 (217) 782-5544

.

3

### STATE OF ILLINOIS ) ) SS. COUNTY OF SANGAMON )

PROOF OF SERVICE I, the undersigned, on oath state that Ihaye served the attachedRespondeq.t's PostHearingBriefupon the personto whom it is directed, byplacing it in an envelope addressed to: TO: Dorothy Gunn, Clerk Illinois PollutionControl Board James R. 

### Thompson Center 100 W. Randolph Street, Suite 11-500 Chicago, TIIinois 60601 Dale A. Guariglia BryanCave, LLP OneMetropolitan Square 211 North Broadway, Suite 3600 St. Louis, MO 63102-2750 Carol SUdman, Hearing Officer Illinois Pollution Control Board 1021 North GrandAvenue East P.O. Box 19274 Springfield, Illinois 62794-9274

and mailing itby First Class Mail from Springfield, Illinois onMay 14, 2004, with sufficient postage affixed.

SUBSCRIBED AND SWORNTO BEFOREME this 14th 

### dayofMay, 2004 

# JS Mil**~cebJC** NotaryPublic**~~~~~**·=·~~~?~V~~Vvv~~~i.** OFFICIAL SEAL 

## .r. 

## 3: BRENDA BOEHNER**~:** 

### :i: NOTARY PUBLIC, STATE OF ILLINOIS

## :r. :::MY COMMISSION EXPIRES 11·14·2005:::**~~~r~vv(~~~~V~Q~~~~~~~~~~~~** 

### TIDS FlLINGIS SUBMITTED ONRECYCLED PAPER

### ILLINOIS POLLUTION CONTROLBOARD July 22, 2002 IEPAATTACHMENT NO. 

# I

# 5**.~.fEECE8VED** D,VISion of Leaal C

### .~. '., Oll,1.o"'i 

### IN THE MATTER OF: PETITION OF C:R.0WNLINEBOATS, INC. FORAN ADJUSTED STANDARD FROM 35 ILL. ADM. CODE 215.301 

## J", ) UL. 

## 2j 

## 2004 ) 

### ) AS 04-01 

### Environmental Protection

, (Adjusted Standard) , 

## Agency

DALE A. GUARIGLIA, BRYAN CAVE, LLP, and ANDREWPOLCYN, M.E., ADVANCE ENVIRONMENTAL ASSOCIATES, L.L.C., APPPEARED ONBEHALF OFPETITIONER; and CHARLES E. MATOESIANAPPEARED ONBEHALF OFTHE ILLINOIS ENVIRONMENTALPROTECTIONAGENCY. OPINION AND ORDER OFTHEBOARD (by

### N.J. Melas): Crownline Boats, Inc. (Crownline) is a fiberglass boat manufacturer located in West Frankfort, Franklin County. In this opinion and order, the Board exempts Cro.wnline from compliance with the volatile organic materiaJ (YOM) control requirements at 35 Ill. Adm. Code 2I5.30r.' Crownline remains subject, under state and federal laws, to VOM controls set forth in the National Emission Standard for Hazardous Air Pollutants (NESHAP) along with additional conditions contained in this order. On December 5, 2003, CrownlineBoats, Inc. (Crownline) filed apetitionfor an adjusted standard from 35 

### TIL Adm. Code 215.301 oftheBoard's airpollutionregulations, commonly known as the "8 IblhrRule," as that Board regulationpertains to the emissions ofVOM. Crownline's facility is located at 11884 Country Club Road, WestFrankfort, Franklin County. Inthe petition, Crownline requested ahearing, which was heldApril 23, 2004. The Illinois Environmental ProtectionAgency (Agency) filed arecommendationthat the Board grant , Crownline's petition onJanuary22,2004. Accompanying the petition, Crownline filed amotion for expeditedreview. Crownline asserts that the Agencyrecently issued Crownline aTitle V CleanAirActPermitProgram (CAAPP) permitand Title Ipermit, requiring Crownline eitherto obtain an adjusted,standard from 35 Ill. Adm. Code 215.301 ordemonstrate compliancewiththat sectionbyDecember 31, 2004. Onthe same day, DaJeA. Guarigliafiled amotionrequestingpermissionto appear

### pro hac vice onbehalfofpetitionerinthis proceeding in accordance with Section I01.400(a)(3). 35 Ill. Adm. Code 101.400(a)(3). TheBoard grantedboth Crownline's motionforexpeditedreview and 

### Mr. Guariglia's motionto appear

### pro hacvice. Based ontherecordbefore it, the Board finds that Crownlinehas provided sufficient justificationfor each ofthe Section28.1 factors. The Boardgrants Crownline an adjusted standard from the 8 Ib/hrRule subjectto conditions outlined in this order.2

ADJUSTED STANDARD PROCEDURE The Environmental Protection Act (Act)(415 ILCS 5/1 etseq. (2002)) and Board rules provide that a petitionermay request, and the Board may grant, an environmental standard that is different from the generally applicable standard that would otherwise apply to the petitioner. This is called an adjusted standard. The general procedures that govern an adjusted standard proceeding are found at Section 28.1 ofthe Act and Part 104, Subpart D ofthe Board's procedural rules. 415 ILCS 5/28.1; 35 Ill. Adm. CO:de 104.400 et 

### at. The Boardrules for the content requirements ofthe petition and Agency recommendation are found at Section 104.406 and Section 104.416, respectively. 35 Ill. Adm. Code 104.406, 104.416. PROCEDURAL BACKGROUND On December 5, 2003, Crownline filed this petition (pet.), accompanied by a motion for expedited review, with the Board for an adjusted standard from the papercoating rule.' From December 10, 2003 throughDecember24, 2003, Crownlinepublished notice ofthe petition in the WestFranJ...fortDailyAmerican, and filedthe certificate ofpublication with the Board on January 5, 2004. The Agency filed its recommendation (Rec.) that the Board gnmt Crownline's requested reliefon January 22,2004, subjectto certain tenns and conditions contained in the Agency's recommendation.

. On April 23, 2003, Hearing OfficerCarol Sudman conducted a hearingin this matter at the offices ofthe WestFrankfort CityAdministration Office, 110North Jefferson Street, West Frankfort. Three witnesses testified athearing: Mr. James T. Claxton, president ofCrownline Boats; Mr.Dale Guariglia, attorney for Crownline; and !'vir. Andrew Polcyn, consultant for Crownline. Hearing.officerSudman found all three witnesses credible. Mr. David Bloomberg was also present onbehalfofthe Agency's Bureau ofAir. Athearing, Crownline offered eight exhibits (Pet. Exh.). Crownline filed apost-hearing briefonMay 14, 2004 (Pet. Br.), and the Agency filed apost-hearingbriefon May 17, 2004 (Ag. Br.).**FACTUALBACKGRO~~** The Facilitv Crownline owns and operates afiberglass boatmanufacturing facility where 

### it manufactures approximately 30 differentmodels ofpersonal recreation fiberglass bo:ats ranging from 17'6" openbowboat, to a29' cabin cruiser. Pet. at4. Since itbegan operations in 1991, Crownlinehas manufactured approximately 40,000 boats, currentlyproducingbetween 15-20 boats each day. The Frankfort facilitybegan operationin 1994 and employs approximately'500- 600 individuals. 

### Id. Crownline's boatmanufacturing process involves the following production areas: (I) mold fabrication; (2) gelcoat application; (3) lamination; (4) grind & 

### trim; (5) woodworking; (6) upholstery; 

### (7) final assembly; and (8) shipping. This petitionfocuses mainly on the gelcoat and3

laminationproduction areas, since they generate most ofCrownline's YOM emissions and are, therefore, most impacted by the 8 lblhrRule. In addition,Crownline notes that the use of adhesives, lacquers, and caulks in otherproduction areas also do notmeet the 8 lblhrRule on a shict hourlybases. Pet. at4. CrownJine's YOM emissions that do notmeet the 8 lblhr Rule consistprimarily ofstYTene. 

### ld. GelcoatApplication The purpose ofthe gelcoat application is to provide color and asmooth surface to the fiberglass boats. Pet. at 5. Molds areprepared for the gelcoat application by cleaning with stripping solvent and awax-releasing agent applied. Pet. at4. In one offour gelcoatbooths, gelcoat is appliedto the hull ordeckmold in a single application using air atomized spray guns. There are thirty-oneatomized spray guns in the gelcoat area. !d. Lamination

. After the gelcoathas dried, the molds are movedto one oftwenty-four laminating stations. Pet. at 5. Duringlamination, glass fibers, polyesterresin and aresin catalyst are applied to the moldusing non-atomized flow-coat chopperguns (flow-coat guns). The layerof fiberglass and resin is thenrolled flat usinghandrollers to remove any airbubbles that were created in the application. Laminateis appliedin layers called "skins" andrequires curing periods between each skin application. Pet. At 5. Threeresin skins are typically applied to decks and two to three skins forhulls, followed by a separate applicationto build theboat floor. 

### ld. Pollution Control EquipmentIn Use In the gelcoat application and laminationprocesses, Crownli.j1euses the following: (1) a high-volume ventilation-systemto keep styrene levels below the w\?rkerexposure limitrequired by OSHA; (2) enclosed spray booths in the gelcoat applicationprocess to reduce YOM emissions into the plant airwhen using spray guns; (3) use oflower styrene-content gelcoat (33.4%) andresin with lowerhazardous airpollutant (HAP) content (35% HAP); (4) flow-coat guns inplace ofair atomized spray guns in the lamination area, (5) panel filters inside the spray booths and lamination areas to controlparticulate emissions from the sprayguns; and (6) submerged-fill resin tanks inthe laminationprocess to reduce splashing and the creation ofVOM emissions. Pet. at 5. YOM Emissions Crownline states thatthe YOM emissions from the faCility vary depending onthe type and size ofeach customboat itmanufactures. Pet. at 5. Crownline's emissions consistprimarily ofstyrene, but also include otherVOMs andvolatile organic HAPs such as methyl methacrylate (MMA). Technical Doc. at 6, 7, App. 7.

. Forpurposes ofcomplyingwiththe 8 lblhrRule, theAgencydirected Crownlineto· considereachboatpart (e.g., hull, deck, etc.) as the "emissionsource." Pet. Exh. 1 at4. From-, 4

the individual emission sources, Crownline estimatedhourly VOM emissions. Among the highest were 34.08 lblhrfor gray lacquer, 15.89 lblhr for carpet adhesive, 21.8 lblhr for gelcoat, and 19.81blhrfor resin. Technical Doc. App. 7, Pet. Exh. 1, Exh. 5 and 6. Crownline notes that some values were overestimated, but several boat models still have parts with emissions greater than 8 lblhr ,vhen VOM emissions are determined on a strictly hourlybasis. Pet. Exh. 1 at 5. According to its 2002Annual Emissions Report, Crownline estimatedVOM emissions totaled 187 tons per year. To quantify and compare potential VOM reductions, Crownline calculated its annual VOM emissions based on 200'3 production data under three scenarios: preMACT, MACT, and the 8 lblhrRule in place. Thepre-MACT scenario resulted in 244.82 tpy

- VOM, while the MACT scenario resulted in 199.79 tpyVOM, and the 8lblhr scenario yielded 144.36 tpyVOM. Technical Doc. App. 

### 6, Exh. 3, 4 and 5. In terms ofHAP, Crownline's preMACT emissions were approximately 204 tpy HAP, whilethe MACT scenario would resultin a 50 tpy reduction in HAP. Pet. Exh. 1 at 7. CAAPP Permit In discussions between the Agency and CrownIineregarding Crownline's draft CAAPP operatingpermit, the AgeJ:.lcy stated that Crownline couldnot average emissions to demonstrate compliance with the 8 1blhrRule. The Agency stated thatthe 8 lblhrRule specifies amaximum hourly emissionrate and, therefore, compliance would need to be demonstrated on a stricthourly basis, not on an average from any longerperiod oftime. Crownllne determined thatbased on the Agency's interpretation, it could not complywith the 8 lblhrRule. Pet. at 1. OnNovember 13, 2003, the Agency issued Crownline aTitle V CAAPP permit and Title Ipermit (No. 055070AAU). The Title V permit states that CrownIine is to obtain an adjusted standard from 35 Ill. Adm. Code 215.301 or demonstrate compliance with Section 215.301 by December 31, 2004

.. Pet. at 2. Crownline's CAAPP permitlimits aJ1Ilual emissions to 249 tons ofVOMper year. Pet. Exh. 1 at 8.

- STANDARD 

### OF REVIEW The Board agrees with CrownIine and the Agency thattheregulation ofgeneral applicability at 35 Ill. Adm. Code 215.301 does not specify alevel of justificationfor an adjusted standard. Pet. at 11; Rec. at7. Therefore, pursuantto Section 28.l(c) ofthe Act, the burden of proofis onthe petitionerto demonstrate that: 

### 1. Factors relatingto thatpetitioner are substantially and significantly different from the factors relied uponbythe Boardin adoptingthe general regulation applicable to thatpetitioner; 2. The existence ofthose factorsjustifies an adjusted standard; 3. Therequested standard will notresult 

### in environmental orhealth effects substantiallyand significantlymore adverse than the effects consideredby the Boardin adoptingthe rule ofgeneral applicability; and5



### 4. The adjusted standard is consistent with any applicable federal law. 415 ILCS 5/28.I(c) (2002): 35 Ill. Adm. Code 104,426(a). CURRE:'\T 

### APPLICABLE STANDARDS One standard applicable to Crownline's boat manufacturing operations is set forth in 35 Ill. Adm. Code 215.301. Section215.301**provide~:** 

### No person shall cause or allow the discharge ofmore than 3.6 kglhr(8 Ibslhr) of organicmaterial into the atmosphere from any emission source, except as provided in Sections 215.302,215.303,215.304 and the following exception: If no odornuisance exists the limitation ofthis Subpart shall apply only to photochemicallyreactive material. 35 Ill. Adm. Code 215.301. Forpurposes ofcomplying with the 8 IblhrRule, theAgencyhas directed Crownlineto considereachboatpart (e.g., 

### hull, deck, etc.) an emission source. Pet. Exh. I at 4. Under separate federal regulation effectiveAugust23,2004, Crownlinemust also meet newlypromulgatedNESHAPs for :Kew and Existing BoatManufacturingFacilities applicable to boatmanufacturers that are major sources ofHAP. Pet. at 6; citing 40 C.F.R. Part 63 Subpart VVVV, 40 C.F.R. 63.5683. Under Section 9.I(a) ofthe Act, NESHAP rules are applicable in Illinois and enforceableunder the Actwithout additional rulemaking activitybythe Board. 415 ILCS 5/9.1 (a) (2002). Therule requires thatboatmanufacturers use maximum available control technology (MACT) to meetthe "MACT floor," which is the'emissionlimitations achievedby the top performing 12% ofbnat manufacturers in the nation. Pet. at 6. To complywith aHAP limit calculated for afacility, manufacturers can use one ofthe foilowing.options: emissions averagingusing a 12-monthrolling average, compliantmaterials, and/or add-on controls. 40 C.F.R. 63.5701, 63.5710. Otherrequirements include: using lowerHAP content gel-coat and resins; coveringresin, gelcoat and solvent containers; andusing cleaning solvents and adhesives containing no more than 5% HAP. TheMACT standard does not require airpollution equipment. To complywithMACT, Crownline opines thatmostboatmanufacturers with open molding operations will have to use flow-coat guns andlow-HAP productionmaterials intheir resins, gelcoats, and adhesives. A flow coat gun generates fewer emissions because it operates at alowerpressure and has anon-atomizeddelivery system. The United States Environmental ProtectionAgency (USEPA) estimates thatby complyingwiththenew MACT standard, boat manufacturers willreduce HAP emissions by an average of35%. Pet. at2, 6; citing 66 F.R. 44222. Crownline states it is currently in compliance with the new MACT standard. Crownline uses flow-coat guns in its lamination operating andresin and gelcoatwithlowerpercentages of HAP content. Pet. at 6. Crownlinehas notyetmade a demonstration ofcomplianceto the USEPA, and will notberequiredto do so until August 2005. Pet. Exh. I at 3.

### 6

CROWNLINE'S PROPOSED ADJUSTED STANDARD In the petition, Crownlineproposedthe following adjusted standard language for adoption bythe !"oard: Pursuantto the authority under Section 28:1 ofthe Environmental ProtectionAct, the Boardhereby adopts the following adjusted standard. This adjusted standard shall apply solely to Crownline Boats, Inc. ("Crownline"). As an alternative to compliance with 35 lAC 

### § 215.301, this adjusted standard allows Crownlineto limit its discharge oforganic material into the atmosphere from its boat manufacturing operations by complying with the National Emission Standardfor Hazardous AirPollutants forNew and ,Existing BoatManufacturing Facilities, set forth at40 CFR §63 Subpart VVVV, as maybe amended in the future. The Agency recommended thatthe Board grant Crownline the requested adjusted standard so long as Crownline complied with the following additional conditions:

a. Crownline shall operatein full compliance with theNational Emission Standards forHazardous AirPollutants forNew and ExistingBoard Manufacturing Facilities, set forth at 40 C.F.R. Section 63 Subpa!i VVVV, as maybeamended in the future. b. Operationinfull compliance with theNational Emission Standardfor Hazardous AirPollutants forNew and ExistingBoatManufacturing Facilities, setforth at40 CFR Section §63 SubpartVVVV, as maybe amendedinthe future, shallbe in lieu ofcompliance with the 8 IbfhrRule found at 35 

### Ill. Adm. Code 215.301.

c. Crownline:shall continue to investigateboatproductionmethods with a reduced YOM content and, where practicable, shall substitute current coatings with lowerYOM content coatings as long as such substitution does not result in a new increasein YOM emissions. Crownline shallbe

.required to do any test which the Illinois EPA specificallyrecommends

thatthey do. An annual report summarizing the activities and results of these investigatory efforts shall bepreparedbyCrownline and submitted to the Illinois EPA Bureau ofAir, Compliance and Enforcement. d. Thereliefgranted in this proceeding shallbe limitedto the emission activities atthe CrownlineWestFrankfortfacility as ofthe date ofthis filing.

e. Crownline shall operateinfull compliance with the CleanAirAct, its CAAPP, the lllinois Environmental ProtectionAct and otherapplicable regulations not otherwise discussedherein. Rec. at5·6.7

At hearing, Crownline submitted the following revised adjusted standard language, agreed to by the Agency (Tr. at 41, Pet. Br., Exh. B), for adoption: As an alternative to compliance with the 8 lblhrRule found at 35 Ill. Adm. Code 215.301, this adjusted standard allows Crownlineto limit its discharge oforganic material into the atmosphere from its boatmanufacturing operations by operating in full compliancewiih theNational Emission Standard for Hazardous Air Pollutants forNew and Existing Boat Manufacturing Facilities, set forth at 40 C.F.R. §63, Subpart VVVV, as maybe

### arn~nded in the future, and with the' following conditions:

a. Crownline shall continue to investigateboatproduction methods with a reduced YOM content and, where practicable, shall substitute current coatings with lowerYOM contentcoatings as long as such substitution does not result in anet increase in YOM emissions. Crownline shall be required to do any reasonable test ofnew technologically oreconomically reasonable productionmethods ormaterials applicable to the open-mold fiberglass boat manufacturing industry which may reduce YOM emissions at Crownline's facility which the Illinois EPA Bureau ofAir specifically requests in writing thatthey do. An annual report summarizing the activities and results ofthese investigatory efforts shall bepreparedby Crownline and submitted to the Illinois EPA Bureau ofAir, Compliance and Enforcement Section. b. Thereliefgranted in this proceeding shallbe limited to the emission activities at the CrownlineWestFrankfortfacility as ofthe date ofthis filing.

c. Nothing in this adjusted standard shall relieve CrownHne ofits dutyto operateinfull compliance with the CleanAirAct, its CAAPP, the lllinois Environmental ProtectionAct and other applicable regulations not otherwise discussedherein

.

.. CROWNLINE'S 

### COMPLIANCE WITH THE lVIACT 

### STANDARD Under separateNESHAP requirements applicable to Crownlineunder Section 9.1(a) of the Act, Crownline states ittook steps earlyto complywith theMACT and carneinfo compliance withMACT emission limits morethan ayearpriorto the deadline. Pet. at 2. However, Crownlinehas not yet dempnstrated compliance, and will nothave to until August 2005. Pet. Exh. I at 3. Crownline states thatit will demonstrate complianceto USEPA withthe new MACT standardbyusing the "model point value averaging option" based on a 12-moIith rolling average and byusing compliantmaterials. 

### Id. Crownline notes that its HAP emission limits will varyfrom month to monthbased on an equation set forth in 40 C.F.R. 63.5698. Pet. Exh. 1 at 6. 

# \8



### The USEPA estimates that compliancewith the MACT standardby the boat manufacturing industry will result in an annual cost ofcompliance of$4,060perton ofHAP reduced and will reduce HAP emissions by an average of35%. 66 F.R. 44222. Crownline estimates its annual compliance costs at approximately $215,600per yearand that it 

### will reduce annual HAP'emissions (nottotal YOM) by approximately 50 tons, or 25%. Pet. Exh. 1 at2. Crownline's annual compliance costis approximately $4,312 perton ofHAP reduced, which is similarto USEPA's estimate 6f$4,060perton HAP reduced. Pet. Exh. I at 3,8. In terms of YOM, Crownline estimated areductionfrom 244.8f

### tpyYOM to 199.79 tpyYOM underthe MACT scenario. TechnicalDoc., App. 6, Exh. 3 and4.

. EFFORTS TO ACHIEVE COMPLIANCE AND ALTERNATIVES Crownline states ithas investigated the following alternatives thatwouldhelp Crownline comply withthe 81b/lu' Rule: (1) 

### reducing YOM contentinproductionmaterials; (2) using alternative operatingprocedures andmethods; and (3) installing end-of-the-pipe emission control. Crownline states thatinvestigations proved that,otherthan end-of-the-pipe emission controls, many ofthe alternatives would not bring Crownline into compliancewith the'8 Iblhr Rule on a stricthourlybasis. Pet. at 6.

.Reducing YOM in Production Materials Crownlinehas reduced YOM inits resin and gelcoatproduction materials to meetthe federal MACT standard. However,meeting the MACT standard alone will notbring Crownline into compliancewith the State 8 lblhrRule. Crownline states that it is notpossibleto further reduce styrene in theresins and still maintainproductintegrity. Pet. at 6. Crownline and its consultant, Advanced Environmental Associates (AEA), could not identify any compliance alternatives to reduceYOM emissions from Crownline's use ofadhesives, lacquer and caulks. Using Alternative Operating Procedures and Methods Crownline states thatitinvestigatedbothopenmolding and closedmolding alternative productionmethods. However, Crownline found that eventho\lgh the alternatives investigated would reduce YOM emissions, they would notbring Crownlineinto compliancewith the 8lb/hr Rule on a strictlyhourlybasis. Crownline explained thatthe open and closedmolding alternativeproductionmethods investigated are only available to the laminationprocess and there areno alternativetechnologies currently available for the gelcoat, lacquering, caulking, and adhesive operations. Pet. at 7. Crownline replacedits atomized spray choppergunsused for resin application with flow-coat guns inits lamination area. Technical Doc. at4. Theflow-coat guns have lowerpressure and internal mixing as compared to the atomizedguns. Pei. at 5. Crownline states it experimented withusing flow-coat guns inthe gelcoatprocess, buttheyhad' too much ofanegativeimpact onproductquality. Pet. Exh. I at2. End-of-Pipe Controls In developing the MACT, the USEPA did notinclude any emission control technologies as theMACT floorfor the following reasons: (I) only oneboatmanufactiJrerusedtailstack, emission control technologies to reduce HAP emissions; (2) the cost ofemission control systems was very highbecauseveryhigh airflows neededbyfacilities to complywith OSHA's styrene

### 9 regulations; and (3) theboatmanufacturing industry canreduce HAP content ofresins, gelcoat, and othermaterials to significantly reduce total HAP emissions withoutundue financial burden. Pet. at 7. Crownline's consultantinvestigated the various end-of-pipe control technologies. As a result ofthe analysis, Crownline determined that emission controls are costprohibitive and, therefore, not an economicallyreasonable option. For example, up-front capitalcosts to install tail-stackcontrols range from $7 million to $14million with annual costs ranging from 54.5 million to nearly$6 mil1ion. Crownline estimates that such control would range from approximately $35,000 to $58,000per ton ofVOM removed. Pet. at 8; Technical Doc. at 16, 18. Crownline explains that thereason end-of-pipe controls are so costlyis because ofthe large volume ofairthat must betreatedin orderto reduce the relatively small amount ofYOM. As discussed above, Crownline must move alarge volume ofairthrough the gelcoat and lamination areas to maintain compliance with OSHA's 8-hourworker exposurelimitfor styrene. Technical Doc. at 16, 18.· SUBSTANTIALLYDIFFERENT FACTORS Crownline states that the primaryintent ofthe 8 lb/hrRule was to preventozone formation and odornuisance. Crownline asserts thattheBoard did not contemplate the methods Crownlineuses to manufactureboats atthe Frankfort facility whenitpromulgated the 8 lb/hr Rule in 1971. Pet. at 11. Crownline states thatmanufacturing fiberglass boat decks orhulls involves abatch-typeprocess ratherthan acontinuous applicationprocess typicallyused in manufacturingprocesses for otherproducts. Crownline argues this fact togetherwith the ventilation system ituses to comply with OSHA's workerprotection.regulation at29 C.F.R. 1910makes the use ofadd-on emission controls economicallyunreasonable. UnderOSHA workerhealth and safety standards for styrene, Crownlinemustmaintainhigh airflow to 

### ventilatebuilding air:. Thehigh airflow makes the cost ofusing**tail~end** 

### stack emissions controls unreasonablyhigh. Crownline states that theBoard did not anticipatethe currentfiberglass boat productionmethods andthe OSHA standardwhen it adoptedthe 8 Ib/hrRule in 1971. Pet. at 12- 13. 

### IMPACT ON THE 

### ENVIRONMENT Crownline contends that its requested adjusted standard will not adversely impact the environment or human health. Pet. at 13. Through AEA, Crownline performed an ambient air quality analysis to estimate Crownline's impact on ozone f6nnation in south-central lilinois. Pet. at 9. AEA used an ozone screening method developed by the USEPAto determine the impacts ofozone formation. Id. Crownline contends that even without the changes it implemented to meet the MACT standard, the Crownline facility would not cause or contribute to any ozone exceedences in south-central Illinois. Based on its Ozone Impact Analysis, Crownline could more than triple its current annual YOM emissions without causing an exceedance ofthe I-hour ozone NAAQS. Pet. Exh. 1 at 8, Pet. Exh. 2. Currently, the Crownline facility emits approximately 195 tons/yr ofVOM per year, and is permitted to produce 249 tpy YOM. Tr. at 22; Pet. Exh. 1 at 8. Compliance with the 8 Ib/hrRule would" 

### 10 yield approximately 144 tons ofYOM per year. Rec. at 6. Before making any changes, the facility would emit approximately 245 tons/yr ofYOM for similar production figures. ld. 

### The Agency agrees with Crownline that ifCrownline could capture the YOM emissions and release them uniformly, rather than in spurts, it could comply with the 8 Ib/hr Rule while not reducing emissions at all. Rec. at 6. Crownline asserts

### th~t the Agency estimales a decrease in the amount ofsolid waste generated and no adverse impacts on water quality and energy consumption from .the adjusted standard. Pet. at 11. CONSISTENCY WITH FEDERAL LAW Crownline states there is no Clean Air Act equivalent rule or regulation prohibiting boat manufacturers' emissions ofYOM in excess of8 Ibslhr, on a strictly hourly basis. Crownline points out that regardless, the facility must comply with the new federal NESHAP for boat manufacturers. Moreover, Crownline contends that ifthe Board grants**Crownline'~** 

### requested relief, Crownline will submit the adjusted standard to the USEPA to be included in IlliIiois' State Implementation Plan (SIP). For these reasons, Crownline states the proposed adjusted standard is consistent with federal law. Pet. at 13. DISCUSSION Crownline seeks relieffrom the State's 8 IblhrRule inthe form ofan adjusted standard. Under separate federal regulation applicable to itunder Section 9.1(a) ofthe Act, Crownlineis already required to complywiththeNESHAP forNew andExisting BoatManufacturing Facilities, which limits HAP emissions from facilities such as the CrownlineWest Frankfort plant. Crownlinemust comply withthe MACT emissions limits underthis standard by August23, 2004. Accordingly, Crownlinerequests that Section 215'.301 not apply to their operations. The Agency recommends thattheBoardgrant Crownlinethe requestedreliefsubject to certainconditions. Ifgranted, the adjusted standardwould apply onlyto thematerials and methods Crownlineuses to manufacture fiberglass boats at its WestFrankfortfacility. The Boardfinds that' Crownline's request forrelieffrom the 8 lblhrRulemeets the statutory "fundamentallydifferent" factors ofsection28.1 (c) ofthe Act. Crownline has demonstratedthat:. (1) 

### factors relating to itare substantially and significantly different from the factors relieduponbythe Boardin adopting the generalregulation; (2) the existence ofthese factorsjustifies an adjusted standard; (3) therequested standard

### ,will not cause substantially or significantlymore adverse enviromnental orhealth effects than the effects consideredbythe Boardin adoptingtherule ofgeneral applicability; and (4) the.adjusted standard is consistent with applicable federal laws. 415 ILCS 5/28.l(c) (2002). 

### Crownlinebases itsjustificationfortherequestedreliefonthe lack ofan economically reasonable ortechnically feasible alternative. The Board fmds thatthe efforts beyond those Crownlinehas already implementedinthe three categories ofalternatives thatCrownline investigated (reducing YOM contentinproductionmaterials, employing alternative operating procedures and productionmethods, and applying end-of-pipe controls) arenot currently

### 11 technically feasible or economicallyreasonable. Additionally, the Ozone Impact Analysis shows that Crownline's emissions will not cause negative health or environmental effects. The Board finds no inconsistencybetween granting Crownline's requested reliefand federal law. Finally, the Board finds thattheBoarddid not anticipate the batch-typeprocesses of coating and laminating fiberglass boatparts that Crownline employs at the West Frankfort facility when it promulgated the 81blhrRule at Seclion 215.301. As amatteroflaw, Crownline must comply with the MACT emissions limits by August 23, 2004, which Crownline states ithas achieved over a yearearly.

. The Agency's recommended adjusted standard language contains some conditions that Crownline's proposed language does not include. Rec. at 5. Specifically, the Agency proposed language limiting Crownline's reliefto 

### apply specificallyto the emission activities at the CrownlineWest Frankfort facility, the effective date being the Board's final decision in this matter. The Agency's adjusted standard languagereiterated that Crownline must operatein full compliance with the federal standard. 

### ld. The Agencyproposed languagerequiring Crownline to continueto investigateboat production methods and, where practicable, substitute**curren~** 

### coatings with lowerYOM content coatings as long as the substitution does notresult in increased YOM emissions. The Agency furtherproposed that Crownline must do testing as the Agency recommends and submit annual reports summarizing the activities and results ofits investigations to theAgency, Bureau ofAir. 

### !d. Athearing, Crownline submittedrevisedlanguage, including three conditions, with no objectionby the Agency. Therevised wording incorporated the Agency'sproposals to: (1) 

### continueto investigateboatproduction methods with areduced YOM content and, where practicable, substitute current coatings with lowerYOM content coatings so long as the substitution does notresultinhigherYOM emissions; (2) perform anyreasonable test ofnew productionmethods'ormaterials thatthe Agency, Bureau ofAir, requestin writing that they do; and (3) submit an arinual.report summarizing the activities andresults oftheirinvestigations

.. Therevised wording also reiterates that Crownline must operatein compliance with the federal standard. In granting this adjusted standard, the Boardis adopting conditions similar, but not identical inwording, to those suggestedbythe parties. The Boardused Crownline's revised language and, as theAgency recommended, the Boardhas tightened up the description ofthe facility and clarifiedreporting requirements. Thebalance ofthe changes arenon-substantive, and are intended to bring this orderinto conformitywith the Board's usual drafting stylein adjusted standards. CONCLUSION 

### The Board grants Crownline's requestedreliefand exempts itfrom the 8 IblhrRule at Section 215.301 ofthe Board's regulations atits facility 

### in WestFrankfort, Franklin County, Crownlineremains subjectto theNESHAP applicable to its facility and suggested conditions. Thereliefis effective as ofthe date ofthis order.

### 12

This opinion constitutes the Board's findings offact and conclusions oflaw. 

### ORDER ,'.

1. 

### Pursuant to Section 28.1 ofthe Environmental ProtectionAct (Act) (415 ILCS 5/28.1), the Board grants Crownline Boats, Inc: an adjusted standard from 35 

### TIL Adm. Code 215.301 (8 lblhrRule), effectiveJuly 24, 2004. The adjusted standard applies to the emissions ofvolatile c(rganic material (YOM) into the atmosphere from Crownline's boat manufacturing facility located at 11884 Country Club Road, West Frankfort, Franklin County. 2. 35 Ill. Adm. Code 215.301 does not apply

.. Crownlineremains subjectto the following:

a. Crownlinemust continue to investigateboatproductionmethods that generate fewer YOM emissions andmaterials thathave areduced YOM content. Wherepracticable, CrownIinemust substitute currentmaterials with lowerYOM content materials 'as long as such substitutiondoes not result in anetincrease in YOM emissions. b. Crownlinemustperform any reasonable test ofnew technologically or economicallyreasonableproductionmethods ormaterials applicable to the open-mold fiberglass boatmanufacturing industry, which may reduce. YOM emissions at Crownline's facility whichthe Illinois Environmental ProtectionAgency (Agency) specificallyrequests inwriting that they do.

c.

_ Crownlinemustprepare and submit each yearan annual report

-SUIT)i:IJarizingthe activities andresults ofthese.iilVestigatoryefforts. The

annual reportmust be submitted to the Agency;Bureau ofAir, Compliance and Enforcement Section; d. Crownlinemust operatein full compliancewiththe CleanAirAct, its CleanAirAct Permit Program permit, theNational Emissions Standard for Hazardous Air Pollutants forNew and Existing BoatManufacturing Facilities, set forth at 40 C.F.R. 63, SubpartYVVV, as required by Section 9.1(a) ofthe Act, and any other applicableregulation. IT IS SO ORDERED. Section41 (a) ofthe Environmental ProtectionActprovides that final Board ordersmay be appealed directlyto the lllinois Appellate Courtwithin 35 days afterthe Board serves the order. 415 ILCS 5/41 (a) (2000); see also 

### 35 

### TIL Adm. Code 101.300(d)(2), 101.906, 102.706. Illinois Supreme CourtRille 335 establishes filing requirements that applywhen the lllinois Appellate Court, by statute, directlyreviews administrative orders. 172 TIL 2d R. 335. The Board's procedural rules providethatmotions forthe Boardto reconsider ormodify its final

### 13

orders maybe filed with the Board within 35 days afterthe orderis received. 35 Ill. Adm. Code 101.520; see also 

### 35 Ill. Adm. Code 101.902, 102.700, 102.702. I, 

### Dorothy M. Gunn, Clerk ofthe Illinois Pollution Control Board, certifythat the Board adopted the above opinion and orderon July 22, 2004, by avote of5-0.

# ~A.~ ./ Dorothy M. Gunn,Clerk Illinois Pollution Control Board