[Federal Register Volume 63, Number 35 (Monday, February 23, 1998)]
[Rules and Regulations]
[Pages 8855-8859]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4378]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

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


Approval and Promulgation of Implementation Plans; Illinois

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: On January 23, 1996, and January 9, 1997, the State of 
Illinois submitted to EPA two site-specific State Implementation Plan 
(SIP) revision requests for Solar Corporation's (Solar) manufacturing 
facility located in Libertyville, Lake County, Illinois. The January 
23, 1996, request seeks to revise the State's Volatile Organic Material 
(VOM) Reasonably Available Control Technology (RACT) requirements 
applicable to certain Solar adhesive operations. The January 9, 1997, 
request seeks to grant a temporary variance from VOM RACT requirements 
applicable to Solar's automotive plastic parts coating operations. In 
this action, EPA is approving the above requested SIP revisions through 
a ``direct final rulemaking;'' the rationale for this approval is 
discussed below.

DATES: This final rule is effective April 24, 1998 unless adverse 
written comments are received by March 25, 1998. If the effective date 
is delayed, timely notice will be published in the Federal Register.

ADDRESSES: Written comments can be mailed to: J. Elmer Bortzer, Chief, 
Regulation Development Section, Air Programs Branch (AR-18J), Air and 
Radiation Division, U.S. Environmental Protection Agency, 77 West 
Jackson Boulevard, Chicago, Illinois, 60604.
    Copies of the SIP revision request and Technical Support Document 
(TSD) for this rulemaking action are available for inspection at the 
following address: (It is recommended that you telephone Mark J. 
Palermo at (312) 886-6082, before visiting the Region 5 office.) U.S. 
Environmental Protection Agency, Region 5, Air and Radiation Division, 
77 West Jackson Boulevard, Chicago, Illinois, 60604.

FOR FURTHER INFORMATION CONTACT: Mark J. Palermo, Environmental 
Protection Specialist, Air Programs Branch (AR-18J) at (312) 886-6082.

SUPPLEMENTARY INFORMATION:

I. Background

    On November 15, 1990, Congress enacted amendments to the 1977 Clean 
Air Act (Act); Public Law 101-549, 104 Stat. 2399, codified at 42 
U.S.C. 7401-7671q. Section 182(b)(2) of the Act requires States to 
adopt RACT rules covering ``major sources'' not already covered by a 
Control Techniques Guideline (CTG) for all areas classified moderate 
nonattainment for ozone or above.1 The Chicago ozone 
nonattainment area (Cook, DuPage, Kane, Lake, McHenry, Will Counties 
and Aux Sable and Goose Lake Townships in Grundy County and Oswego 
Township in Kendall County) is classified as ``severe'' nonattainment 
for ozone, and therefore is subject to the Act's non-CTG RACT 
requirement.
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    \1\ A definition of RACT is cited in a General Preamble-
Supplement published at 44 FR at 53761 (September 17, 1979). RACT is 
defined as the lowest emission limitation that a particular source 
is capable of meeting by the application of control technology that 
is reasonably available, considering technological and economic 
feasibility. CTGs are documents published by EPA which contain 
information on available air pollution control techniques and 
provide recommendations on what the EPA considers the ``presumptive 
norm'' for RACT. Sources which are not covered by a CTG are called 
``non-CTG'' sources.
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    Under section 182(d) of the Act, sources located in severe ozone 
nonattainment areas are considered ``major sources'' if they have the 
potential to emit 25 tons per year or more of VOM.2 Solar's 
Libertyville facility has the potential to emit more than 25 tons of 
VOM per year, and therefore is subject to RACT requirements.
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    \2\ VOM, as defined by the State of Illinois, is identical to 
``Volatile Organic Compounds'' (VOC), as defined by EPA.
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II. Solar Operations

    Solar owns and operates a facility in Libertyville, Illinois which 
produces custom-made, fabric covered and/or painted plastic decorative 
components for manufacturers of automobiles and electronic home and 
office products. The decorative components produced by Solar for the 
home and office electronics industry include speaker grilles for 
stereos and televisions, pressure-formed thermoplastic back enclosures 
for large-screen and projection television sets, and other decorative 
molded parts and fabric wrapped subassemblies. Solar's automotive 
interior products include speaker grilles, vinyl- and fabric-clad door 
trim components, injection molded decorative assemblies, seating trim

[[Page 8856]]

component, and electronic subassemblies.

III. Non-CTG Adhesives Adjusted Standard

A. Existing SIP Requirements

    On October 21, 1993, and March 4, 1994, the State of Illinois 
submitted RACT rules covering major non-CTG sources in the Chicago 
severe ozone nonattainment area, which includes subparts PP, QQ, RR, 
TT, and UU of Part 218 of the 35 Illinois Administrative Code (IAC), as 
a revision to the Illinois SIP. The SIP revision was approved by EPA on 
October 21, 1996 (61 FR at 54556). Prior to Illinois' non-CTG rule 
adoption, the State's RACT rules did not apply to Solar because the 
facility's emissions were below the rules' applicability threshold of 
100 TPY or more of VOM. Pursuant to section 182(b), the State lowered 
the applicability threshold to include as major sources all sources 
with a potential to emit 25 TPY or more VOM. Solar, which had not been 
affected by the 100 ton RACT rules, became subject to the 25 ton RACT 
rules.
    Among the non-CTG rule provisions Solar became subject to is 
subpart PP, which contains VOM control requirements for miscellaneous 
fabricated product manufacturing processes. Under subpart PP, Solar 
would be required either to use adhesives which do not exceed 3.5 
pounds of VOM per gallon (lbs VOM/gallon) as-applied, or to operate 
emission capture and control techniques which achieve an overall 
reduction in uncontrolled VOM emissions of at least 81 percent (%). 
Subpart PP is based upon requirements promulgated under the Chicago VOC 
Federal Implementation Plan (FIP). In developing the FIP, the EPA used 
information from existing coating CTGs and the State and EPA's 
regulatory experience to establish the 3.5 lbs VOM/gallon limitation 
for non-CTG coating operations.

B. Solar Adjusted Standard

    On February 28, 1995, Solar and the Illinois Environmental 
Protection Agency (IEPA) filed a joint petition for an adjusted 
standard with the Illinois Pollution Control Board (Board). The 
adjusted standard petition requested that Illinois relax the stringency 
of the VOM limit for Solar's adhesive application from 3.5 lbs VOM/
gallon as-applied, to 5.75 lbs VOM/gallon as-applied.
    In its petition, Solar noted that the technical support for the 
non-CTG limitation promulgated under the Chicago FIP and adopted by 
Illinois did not take into account the necessary characteristics of 
adhesives used to adhere fabric to plastic parts for the home 
entertainment and auto industry, which is Solar's specific industry. 
Further, Solar justified the rule relaxation based upon its own 
technical support demonstrating that the 3.5 lbs VOM/limit is 
technically and economically infeasible, and that a 5.75 lbs VOM/gallon 
limit for its adhesive operations is RACT for the facility.
    A public hearing on the adjusted standard petition was held on July 
18, 1995, in Libertyville, Illinois. On July 20, 1995, the Board 
adopted a Final Opinion and Order, AS 94-2, granting the adjusted 
standard requested by Solar. The adjusted standard also became 
effective on July 20, 1995. On August 14, 1995, the IEPA filed a motion 
to modify the final Board Order. On September 1, 1995, Solar filed a 
response to the IEPA's motion to modify. On September 7, 1995, the 
Board adopted the IEPA's proposed changes to the final opinion, noting 
that the language of the July 20, 1995, opinion would not be affected. 
The IEPA formally submitted the adjusted standard for Solar on January 
23, 1996, as a site-specific revision to the Illinois SIP for ozone.

C. Criteria for Evaluating Adjusted Standard

    The EPA has identified VOC control levels in its CTGs and non-CTG 
control evaluations that it presumes to constitute RACT for various 
categories of sources. However, case-by-case RACT determinations may be 
developed that differ from EPA's presumptive norm. The EPA will approve 
these RACT determinations as long as a demonstration is made that they 
satisfy the Act's RACT requirements based on adequate documentation of 
the economic and technical circumstances of the particular sources 
being regulated. To make this demonstration, it must be shown that the 
current SIP requirements do not represent RACT because pollution 
control technology necessary to reach the requirements is not and 
cannot be expected to be reasonably available. The EPA will determine 
on a case-by-case basis whether this demonstration has been made, 
taking into account all the relevant facts and circumstances concerning 
each case. A demonstration must be made that reasonable efforts were 
taken to determine and adequately document the availability of 
complying coatings or other kinds of controls, as appropriate. If it is 
conclusively demonstrated that complying low-solvent coatings are 
unavailable, the EPA would consider an alternative RACT determination 
based on the lowest level of VOM control technically and economically 
feasible for the facility.

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

    To comply with the 3.5 lbs VOM/gallon non-CTG SIP requirement, 
Solar investigated reformulation of adhesives, water-based adhesives, 
alternatives to adhesives, and catalytic oxidation add-on control. In 
testing adhesive technologies, Solar attempted to meet the 3.5 lbs VOM/
gallon SIP limit while meeting customer aesthetic and environmental 
performance specifications. Solar's customers require the company to 
conduct various tests on its products to determine whether the fabric 
bonds withstand a wide variety of temperatures and humidities which the 
products will be subject to during shipment and actual use.
    Solar's adhesive supplier attempted to reformulate the adhesives it 
sells to Solar to bring the adhesives into compliance, and was able to 
increase the solids content of Solar's primary adhesive from 20% to 
30%, thereby reducing the VOM content from 6.02 lbs VOM/gallon to 5.49 
lbs VOM/gallon. The supplier, however, determined that further 
reduction could not be achieved without increasing the solids content 
to 50%, which would result in an adhesive so viscous that it could not 
be applied with either a manual gun or auto-spray. Solar also 
investigated partially reformulating Solar's primary adhesive using 
acetone, which resulted in the adhesive drying too fast before the 
fabric could be properly adhered to the plastic. In addition to trying 
adhesive reformulation, Solar and its adhesive supplier conducted major 
test trials of several two-component water-based adhesives. However, 
the testing showed that the adhesives set too quickly, which was 
unacceptable given that Solar's process requires repeated repositioning 
of fabric to ensure the proper tautness of the fabric on each plastic 
part.
    The January 1996 State submittal also provides documentation of 
Solar's contacts with two other adhesive suppliers to determine whether 
they could offer low-emitting adhesives to Solar which would both meet 
the 3.5 lbs VOM/gallon limit, as well as meet the performance 
specifications of Solar's customers. However, according to the State 
submittal, these suppliers did not offer adhesives which would meet the 
performance specifications of Solar's

[[Page 8857]]

customers in the majority of its adhesive operations.
    After EPA received the January 1996 submittal, EPA requested that 
IEPA and Solar analyze whether Solar can use the adhesives or 
techniques of two California companies in compliance with South Coast 
Air Quality Management District adhesive limits, James B. Lansing (JBL) 
and Fleetwood Motor Homes (Fleetwood). IEPA submitted subsequent 
documentation on July 23, 1997, indicating that Solar cannot use the 
adhesives used at the California JBL and Fleetwood plants because the 
plants have distinguishable products and processes involving different 
adhesive bonding requirements than that of Solar.
    Besides seeking compliant adhesives, Solar has tried adhesiveless 
processes as an alternative to adhesives by conducting test trials with 
sonic welding and use of a heat plate. Solar was unsuccessful with 
sonic welding because of the curved surfaces of many of its plastic 
components. However, Solar was somewhat successful with the heat plate 
technique and now uses a heat plate to bond cloth to about 20% of the 
plastic parts it produces. Yet, Solar cannot use the hot plate 
technique in more operations because for this technique to be feasible, 
the plastic part must have sufficient cross section to withstand the 
heat generated in bonding.
    As for add-on controls, Solar investigated catalytic oxidation as a 
means of achieving 81% capture and control of VOM emission from the 
manual spray booths and auto-spray machines. Radian Corporation's 
consultants examined Solar's operations estimated costs for catalytic 
oxidation control to be $25,000 and $10,000 per ton for the manual 
spray guns and auto-spray machines, respectively. Solar contends that 
these costs are economically unreasonable for the facility.

E. EPA Analysis of Solar's Adjusted Standard

    Based on the information and technical support IEPA provided in its 
submittal, the EPA finds that the non-CTG SIP requirements are not 
technically or economically feasible for the Solar Libertyville 
facility's adhesive process, and that a limit of 5.75 lbs VOM/gallon 
limit on adhesive content is RACT for the facility. For a more detailed 
analysis of this SIP revision, please refer to the TSD available from 
the Region 5 office listed above.

IV. Variance for Automotive Plastic Parts Coating Limit

A. Existing SIP Requirements

    On October 26, 1995, EPA approved Illinois RACT regulations 
covering plastic parts coating operations in the Chicago ozone 
nonattainment area. The regulations establish VOM emission limitations 
which can be met in one of four ways: (1) use of coatings which meet a 
specified VOM content limit (218.204(n) and (o)); (2) meet a daily-
weighted average limit for those coating lines that apply coatings from 
the same coating category (218.205(g)); (3) use of an add-on capture 
system and control device which meets an 81% VOM capture and control 
efficiency (218.207(i)); or, (4) meet a cross-line averaging limit 
(218.212).
    Solar through its variance petition seeks temporary relief from 
218.204(n)(1)(B)(i), which requires operations that apply air dried 
color coating to automotive interior plastic parts to meet a VOM 
content limit of 0.38 kg/l or 3.2 lbs/gallon, by March 15, 1996.

B. Solar Variance

    On May 22, 1996, Solar filed its petition for variance from 35 IAC 
218.204(n)(1)(B)(i) with the Board. On July 15, 1996, the IEPA filed 
its recommendation of support for the variance. A public hearing on the 
variance petition was held on August 9, 1996, in Libertyville, 
Illinois. On September 5, 1996, the Board adopted a Final Opinion and 
Order, PCB 96-239, granting the variance requested by Solar. On 
September 13, 1996, Solar signed a certificate of acceptance, which 
binds Solar to all terms and conditions of the granted variance. The 
IEPA formally submitted the variance for Solar on January 9, 1997, as a 
site-specific revision to the Illinois SIP for ozone.
    The variance was granted because Solar presented adequate proof to 
the Board that immediate compliance with section 218.204(n)(1)(B)(i) 
would result in an arbitrary or unreasonable hardship which outweighs 
the public interest in attaining immediate compliance with regulations 
designed to protect the public. Such a burden of proof is required by 
Illinois law before a variance can be granted.
    As of the date of the Illinois submittal, Solar replaced 
approximately 98% of its coatings to water-based products. However, 
Solar's coating supplier needed extra time to reformulate the remaining 
paints to water-based so as to comply with the State's VOM content 
requirement. Also, additional time was needed for any unanticipated 
delays and to ensure that the water-based coatings meet customer 
specifications.
    Solar indicated in its variance petition that it hired a consultant 
to investigate the use of add-on controls to comply with the State's 
RACT requirements. The consultant studied carbon adsorbers, thermal and 
catalytic afterburners, as well as condensers, and estimated that the 
cost to install capture and control equipment at the spray booths would 
be more than $25,000 per ton. Solar contends that the use of any add-on 
controls is economically unreasonable because it has reformulated 98% 
of its paints, and only 134.25 gallons of non-compliant paint will be 
used.
    IEPA agrees with Solar's position that daily-weighted averaging is 
not an appropriate option for Solar because Solar's coating lines are 
subject to different VOM content limits. As for cross-line averaging, 
this compliance option would require an operational change to pre-
existing coating lines. Since Solar has committed to reformulating its 
paints as a means to achieve compliance, the IEPA contends in the 
submittal that requiring Solar to make an operation change for the five 
remaining non-compliant paints is not an effective or reasonable 
alternative. The IEPA further notes that these options are not 
appropriate for Solar because Solar is seeking temporary, not permanent 
relief.
    The variance, Solar's use of non-compliant interior automotive 
coating is limited to the 134.25 gallons of the above coatings Solar 
has in stock. The variance indicates the vendor number, VOM content, 
and gallons allowed to be used for each of the five non-compliant 
coatings in stock. Solar is not allowed to use any other non-compliant 
coatings under the variance. Solar is also limited to a total of 0.67 
tons of VOM emissions from these compliant coatings over a 12 month 
period beginning May 22, 1996. The variance terminates on the earlier 
of two dates: May 22, 1997, or when the water-based interior automotive 
coatings are available and approved as substitutes for the non-
compliant coatings specified in the variance.
    The variance provides that Solar shall send monthly status reports 
to IEPA providing various information regarding the non-compliant 
interior automotive coatings. Once a water-based automotive interior 
coating is available and approved by Solar's customers as a substitute 
for a coating covered by the variance, the variance for that coating no 
longer applies and the coating becomes subject to 35 IAC 
218.204(n)(l)(B)(i). The variance

[[Page 8858]]

requires Solar to notify the IEPA within 10 days after any non-
compliant interior automotive coating subject to the variance is 
converted to a water-based coating is approved and available to use.

C. EPA Analysis of Solar Variance

    Based on the information provided in the SIP submittal, the EPA 
finds that the variance for Solar is justified, and the compliance 
milestone provisions required by the variance represent a reasonable 
approach to bringing the Solar facility into compliance with the 
automotive plastic parts coating limit in a timely manner. Therefore, 
the EPA finds this SIP submittal approvable.

V. Final Action

    The EPA is approving, through direct final rulemaking action, 
Illinois' January 23, 1996, site-specific SIP revision for Solar's 
Libertyville, Illinois facility, which relaxes the VOM content limit 
required for its adhesive operations from 3.5 lbs VOM/gallon to 5.75 
lbs VOM/gallon. The EPA is also approving, through direct final 
rulemaking action, Illinois' January 9, 1997, site-specific SIP 
revision which provides a temporary variance from the State's plastic 
parts coating rule for Solar's Libertyville facility.
    The EPA is publishing this action without prior proposal because 
EPA views this as a noncontroversial revision and anticipates no 
adverse comments. However, in a separate document in this Federal 
Register publication, the EPA is proposing to approve the SIP revision 
should specified written adverse or critical comments be filed. This 
rule will become effective without further notice unless the Agency 
receives relevant adverse written comment on the parallel notice of 
proposed rulemaking (published in the proposed rules section of this 
Federal Register), within 30 days of today's document. Should the 
Agency receive such comments, it will publish a document informing the 
public that this rule did not take effect. Any parties interested in 
commenting on this action should do so at this time.
    Nothing in this action should be construed as permitting, allowing 
or establishing a precedent for any future request for revision to any 
SIP. Each request for revision to the SIP shall be considered 
separately in light of specific technical, economic, and environmental 
factors and in relation to relevant statutory and regulatory 
requirements.

VI. Administrative Requirements

A. Executive Order 12866

    The Office of Management and Budget has exempted this regulatory 
action from Executive Order 12866 review.

B. Regulatory Flexibility

    Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA 
must prepare a regulatory flexibility analysis assessing the impact of 
any proposed or final rule on small entities. 5 U.S.C. 603 and 604. 
Alternatively, EPA may certify that the rule will not have a 
significant impact on a substantial number of small entities. Small 
entities include small businesses, small not-for-profit enterprises, 
and government entities with jurisdiction over populations of less than 
50,000.
    SIP approvals under section 110 and subchapter I, part D of the Act 
do not create any new requirements, but simply approve requirements 
that the State is already imposing. Therefore, because the Federal SIP 
approval does not impose any new requirements, the Administrator 
certifies that it does not have a significant impact on any small 
entities affected. Moreover, due to the nature of the Federal-State 
relationship under the Act, preparation of a flexibility analysis would 
constitute Federal inquiry into the economic reasonableness of the 
State action. The Clean Air Act forbids EPA to base its actions 
concerning SIPs on such grounds. Union Electric Co. v. EPA., 427 U.S. 
246, 256-66 (1976); 42 U.S.C. 7410(a)(2).

C. Unfunded Mandates

    Under Section 202 of the Unfunded Mandates Reform Act of 1995, 
signed into law on March 22, 1995, EPA must undertake various actions 
in association with any proposed or final rule that includes a Federal 
mandate that may result in estimated costs to state, local, or tribal 
governments in the aggregate; or to the private sector, of $100 million 
or more. This Federal action approves pre-existing requirements under 
state or local law, and imposes no new requirements. Accordingly, no 
additional costs to state, local, or tribal governments, or the private 
sector, result from this action.

D. Submission to Congress and the Comptroller General

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. Section 804, however, exempts from section 801 the 
following types of rules: rules of particular applicability; rules 
relating to agency management or personnel; and rules of agency 
organization, procedure, or practice that do not substantially affect 
the rights or obligations of non-agency parties. 5 U.S.C. 804(3). EPA 
is not required to submit a rule report regarding today's action under 
section 801 because this is a rule of particular applicability.

E. Petitions for Judicial Review

    Under section 307(b)(1) of the Act, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by April 24, 1998. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this rule for the purposes of judicial review nor does 
it extend the time within which a petition for judicial review may be 
filed, and shall not postpone the effectiveness of such rule or action. 
This action may not be challenged later in proceedings to enforce its 
requirements. (See Section 307(b)(2)).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Incorporation by reference, Intergovernmental relations, Ozone, 
Reporting and recordkeeping requirements.

    Dated: January 29, 1998.
David A. Ullrich,
Acting Regional Administrator.

    For the reasons stated in the preamble, part 52, chapter I, title 
40 of the Code of Federal Regulations is amended as follows:

PART 52--[AMENDED]

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

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

Subpart O--Illinois

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


Sec. 52.720  Identification of plan.

* * * * *
    (c) * * *
    (135) On January 23, 1996, Illinois submitted a site-specific 
revision to the State Implementation Plan which relaxes the volatile 
organic material (VOM) content limit for fabricated

[[Page 8859]]

product adhesive operations at Solar Corporation's Libertyville, 
Illinois facility from 3.5 pounds VOM per gallon to 5.75 pounds VOM per 
gallon.
    (i) Incorporation by reference. July 20, 1995, Opinion and Order of 
the Illinois Pollution Control Board, AS 94-2, effective July 20, 1995.
    3. Section 52.720 is amended by adding paragraph (c)(136) to read 
as follows:


Sec. 52.720  Identification of plan.

* * * * *
    (c) * * *
    (136) On January 9, 1997, Illinois submitted a site-specific 
revision to the State Implementation Plan which grants a temporary 
variance from certain automotive plastic parts coating volatile organic 
material requirements at Solar Corporation's Libertyville, Illinois 
facility.
    (i) Incorporation by reference. September 5, 1996, Opinion and 
Order of the Illinois Pollution Control Board, PCB 96-239, effective 
September 13, 1996. Certificate of Acceptance signed September 13, 
1996.

[FR Doc. 98-4378 Filed 2-20-98; 8:45 am]
BILLING CODE 6560-50-P