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jOSCPK ft. ICLLCB ^C*OMC A, NftCAMAN We1UA-LAkM*tMm. .ftOmcAkOmaCmftAMt. jm. *ALCOk ft. HmAITnvA ftWttft V. ftUMCft MARTIN W. ftCACOVlftt KMN ft. tlftACft |A9ti e. RAAMft *'ftAftk r. MORROWS ft. ftVftCCA *ct w. M v* CRV1 ftMJfcftT'Nfftt.A. MCAOMftft VAMt**CC N. NAUMtM ftftAAAft 4_ *Of*W(ft TftftftftMftft ft. ^OMfft MaRY HAMmA MMA*4i maR roa rvCHft fekNtt A. ftrM*Mft fRt.COTRORVAft.w*' ** ftMftlVAA. . RufttCkk n. van m. mMirif MNt AMftCb MftVfcC* fvftAN T. CON** ftUSAM J. VUM MAW C MAVftft ftANONA #. ftftMMIft fffttt..AA6TDHwAMeMa0 bvT>ftAVhKujTNff0t*T ftawro m. vrrr* AftMlTTCft I* VlNftlNIA AftHiTTCft IN *<R*YLVANtA ONLY law ornezs Keller and Heckman 1150 17* STREET. K.W. SUITE lOOO Washington, d.c. aoooe (308) wse-seoo October 17, 1986 KtCNTtr* itAft OANlCk ft' O'XVC* ovftwAae 9 ftoftoca C*A*uft v. ftacftc* mo rcLKftoaica <99t> ftft.Yftftft ftAftLC AOQHCftft "mm\**!- wmrtrs fcHC* ftUU. VVMftCft (202) 956-5641 Martin McGregor, Esquire Jamison and McGregor Suite 3990 Republic Bank Center 700 Louisiana Houston, Texas 77002 Res EPA Vinyl Chloride Litigation Dear; Martin: Enclosed is the summary of Environmental Protection Agency (EPA) litigation involving enforcement of the Vinyl Chloride Clean Air Act Standard. I hope that it will be of some assistance to you in negotiating with the government on the Ethyl case. I would be most appreciative of any pleadings or other information you could share with me on the progress of the case. Similarly, if I can be of any further assistance to you, please feel free to give me a call. Cordially yours. Enclosure Peter L. de la Cruz SPI-06128 S PI-06130 ( ( VC PENALTIES $1,916,000 117,500 395.000 225.000 425.000 3,078,500 1,250,000 $4,328,500 Total fcom attached 9/86 Report Dow, Freeport, TX, 3/87 BFG, Plaquemine, LA, 4/87 PPG, Lake Charles, LA, 7/87 Occidental, Addis, LA, 10/87 SUBTOTAL Borden TOTAL I am missing the figures for a number of cases so the actual total is probably $5 million or so. SPI-06131 1182 Federal Register / Vol. 50. No. 8 / Wednesday. January 9. 19&S / Proposed Rules ENVIRONMENTAL PROTECTION agency rtCFRPartll IAD-FRL-2707-4] National Emission Standards lor Hazardous Air Pollutants; Vinyl Chloride AGENCY: Envoronmental Protection Agency (EPA). action: Proposed rule and notice of public hearing-___________________ summary: The current emission standard for vinyl chloride [VC) was promulgated under Section 112 of the Clean Air Act in 1978. A review of the technological basis and administrative aspects of the standard has been completed, and the conclusions of the review are presented in this notice The conclusions are the basis for this action which (!) proposes administrative and clarifying revisions to the standard and (2) announces decisions pertaining to other aspects of the current standard. This notice also withdraws proposed revisions to the current standard which were published in the Federal Register on June 2.1977 (42 FR 28154). If requested, a public hearing will be held to provide interested persons an opportunity for oral presentations of data, views, or arguments concerning the proposed revisions to the current standard. DATES: Comments. Comments must bs received on or before March 25.1985. Public Hearing. If anyone contacts the EPA requesting to speak at a public hearing by January 30 1985. a public hearing will be held or. February 26. 1985 beginning a: 9:00 a.m. Persons interested in attending the hearing should call Ms. Shelby loumigan at (919) 541-5578 to verify that a hearing will occur. Request to Speak at Hearing. Persons wishing to present oral testimony must contact EPA by January 30.1985. Incorporation by Reference. The incorporation by reference of certain publications in these standards will be approved by the Director of the Federal Register as of the date of the final rule. addresses: Comments. Comments should be submitted (in duplicate if possible) to: Centra) Docket Section (A130). Attention Docket Number A-81-21. U S Environmental Protection Agency. 401 M Street, S W.. Washington. D C. 20460. Public Hearing. If anyone contacts the EPA requesting to speak at a pubiic hearing by January 30.1985. tne public hearing will be held at EPA Auditorium. comer of Highway 54 and Alexander Drive. Research Triangle Park. North Carolina. Persons interested in attending the hearing should call Ms. Shelby Joumigan at (919) 541-5578 to verity that a hearing will occur. Persons wishing to present oral testimony should notify Ms. Shelby Joumigan. Standards Development Branch (MD-13). U.S. Environmental Protection Ageney. Research Triangle Park. North Carolina 27711. telephone number (919) 541-5576. Background Information Document The general findings of the review atudy are documented in "Vinyl Chloride--A Review of National Emission Standards". EPA-450/5-82-003 (NT3SPB 64-114354). available from the National Technical Information Service, 5285 Port Royal Road. Springfield. Virginia 22161. The major technical analysis for the review study is contained in a separate document which may be obtained from the U-S. EPA Library (MD-35). Research Triangle Park. North Carolina 27711. telephone number (919) 541-2777. Please refer to "Vinyl Chloride: Relief Valve Diacharge Standard." EPA-450/3-85-002. for the technical document. Docket. Docket No. A-81-21. containing supporting information used in developing the proposed standard, ia available for public inspection and copying between 8:00 a.m. and 4:00 p m.. Monday through Friday, at EPA'a Central Docket Section. West Tower Lobby. Gallery 1. Waterside Mall. 401 M Street. SW.. Washington. D.C. 20460. A reasonable fee may be charged for copying. FOR FVTXER INFORMATION CONTACT Mr. Robert E. Rosensteel or Mr. Leslie B. Evans. (919) 541-5871. concerning technical aspects of the industry and control technologies, and Mr. Fred Dimmiek or Mr. Gilbert H. Wood, (919) 541-5578. concerning regulatory decision*. The address for these contacts is Emission Standards and Engineering Division (MD-13), U.5. Environmental Protection Agency. Research Triangle Park. North Carolina 27711. Supplementary information: Summary of Revisions to Current Standard Revisions. Several administrative changes are being proposed as a result of a review of the national emission standard for VC. No major revisions ar* being proposed to the standard As with the current standard for VC. the revisions are being established under Section 112 of the Clean Air Art. The significant administrative revisions include: (1) Reformatting the emission Unit for relief valve discharges, (2) providing a compliance test procedure and s specific emission limit for operators who perform itripplng operations in reactors, and (3) specifying requirement* for leak detection and ait programs for certain equipment in service. Additional minor administrative changes to the standard arc being proposed end are explained .later a this premable. Summary ofHealth. Environmental, Energ y, endEconomic Impacts. Since no major revision* to the standard are being proposed, the impacts resulting from the current standard remain generally unchanged. In 1975. it was estimated that emissions of VC from plants producing ethylene dichloride (EDC). VC monomer and polyvinyl chloride (PVC) would be reduced from 96.000 Mg/yr to 4.910 Mg/yr under the current standard, representing an emission reduction of 91.000 Mg/yr of VC (or 95 percent of VC emissions). Emissions of volatile organic compounds (VOC) and EDC are also reduced under the standard. The estimated risks attributed to exposure to VC from EDC/VC end PVC plants in operation prior to the current standard were 5.5 cases per year for liver angiosarcoma and 11 cases per ytar for all cancers. The risks attributed to exposure to VC from sources under the current standard have been estimated to be 0.28 cases per year for liver angiosarcoma and 0.55 cases per year for all cancers. --\ In 1975. the estimated capital cost for I existing plants to meet the VC standard , was $198 million, of which $15 million was for EDC and VC monomer plants and $183 million was for PVC plants. The EPA estimated that the annualised cost (including capital amortization, etc.) to these plants to maintain the required emission levels would be S70 million per year ______ _ Background The VC standard was proposed on December 24.1975 (40 Fr 595321 and promulgated on October 21 . <"6 (41 Fr 48559). It is applicable to plant* producing EDC by the reaction of oxygen and hydrogen chloride with ethylene, plants producing VC by any process, and plants producting one or more polymers containing any fraction of VC. These plants are subject to different requirements at numerous VC emission points in the manufacturing process. These requirements include numerical emission limits, equipment specifications, and work practices. The standard was designed to minimize the health risks associated SPI-06132 } i On the other hand/ the proposal states that if / emissions from existing sources are already below the ' emission level applicable/ this proposed amendment would give a credit for the difference between the emission limit and the actual emission level. This rationale is inconsistent with the stated goals of prohibiting an increase of ambient levels of vinyl chloride. The amendment states the effects of reducing vinyl chloride emissions is less than one percent. Tne basis for these calculations is unclear and should be made explicit. If this statement is true/ the net benefit of this amendment is questionable. D. Post Comment-Period Developments Pursuant to Section 112 of the Act/ in 1980 EPA undertook a comprehensive review of the vinyl chloride standard. This review included contracting with TRW/ Inc. to evaluate emission control technologies/ existing sources not covered by the standard/ new sources not identified during the original study/ and enforcement experience at federal and state levels. TRW reported on all these factors as well as current industry performance and the impact of other regulations^!^/ The industry's cost of compliance for the ten-year period from 1977-1986 was estimated to be $765.7 million in 1977 dollars.-!!/ EPA subsequently issued revised figures showing total annual air pollution control costs of $1.2 billion during the 1981-1990 period for industry compliance with the vinyl chloride standard.!^/ .__ 16/ See Vinyl Chloride--A Review of National Emission Standards TFeb. /"f?82) / C.L. A-25. 17/ id. at 2-11. 18/ EPA/ The Cost of Clean Air and Water Report to Congress 1984/ Table A5.2.4 (May/ 1984). 11 SPl-06133 EPA-450/3-82-003 Vinyl Chloride - A Review Of National Emission Standards Prepared by TRW, Inc. P.O.Box 13000 Research Triangle Park, North Caroline 27709 EPA Project Officer: Fred Porter Emission Standards and Engineering Division U.S. ENVIRONMENTAL PROTECTION AGENCY Office of Air, Noise and Radiation Office of Air Quality Planning and Standards Research Triangle Park, North Carolina 27711 February 1932 SPI-06134 I r distribution of these plants throughout the United States. (See Appendix C for identification of these plants). The number of EDC/VC plants has increased from 15 prior to promulgation of the regulation to 17 plants currently in operation. Two of the original plants discontinued operation and four new plants began operation. These new plants are identified in Appendix C. During this period the approximate VC nameplate production capacity increased from 3.1 teragrams (6820 million pounds) per year in 1974 to 3.7 teragrams (8200 million pounds) per year in 1980 (EPA, 1975; Chemical Week, 1980a). The number of operating PVC plants has remained consistent since promulgation of the regulation. Of the 41 original PVC plants, 4 plants have discontinued operation and 3 new plants have begun operation. These newer larger plants, along with extensive expansions at several other .existing plants, have resulted in an approximate increase in PVC nameplate production capacity from 2.6 teragrams (5739 million pounds) per year in 1975 to 3.4 teragrams (7600 million pounds) per year in 1980 (EPA, 1975; Chemical Week, 1980b). 2.3.2 Influence of the Standard on Industry Promulgation of the regulation was followed by significant changes in the VC industry. These changes included plant and equipment moderni zation, process modifications, and redirection of some research and development resources from the product itself to the areas of environ mental control. Economically, these changes were felt most acutely by the older PVC plants that had to retrofit their processes with new controls. Several EDC/VC and PVC plants were still in the design phase during development of the regulation and the engineering was altered to accommodate the new requirements. The cost (of compliance) to the VC industry for a 10-year period (1977-1986) is estimated to be $765.7 million (1977 dollars). This includes investments, capital, operating and maintenance costs for new and existing plants (EPA, 1979). A survey of 14 PVC producers Indicated a lQ-to-12 percent average loss in production capacity as a result of compliance requirements (Chemical Week, 1979). The reasons for lost capacity were due mainly to the time needed to clean reactors and purge the different systems in an 2*11 SPI-06135 I effort to reduce VC emissions prior to opening to the atmosphere. The PVC process |uay also need to b operated at a slower rate to strip residual VC (RVC) frois PVC resins in order to reduce emissions. The production loss varies with the type of resin produced and stripping technology used. EDC/VC plants have expended capital to comply with the regulations, mainly for add-on control equipment and modifications to processes. Furthermore, state agencies regulating hydrocarbon emissions are stimu lating new technology for emission reduction. The main emphasis has been in changing from air processes to oxygen processes in the EDC process. This results in a lowti; volume emission to be combusted. At the time of this review study, most of the EOC/VC and PVC plants havfe completed many of the modifications discussed above and are channeling their research and development resources back to product development. Relatively few plants have ceased production during the last 4 years. No EDC/VC plants have shut down; seven PVC plants have closed (four on a temporary basis). Construction of new or modified sources is currently underway in many regions. 2.3.3 Industrial Trends From the standpoint of process and control, there is a significant trend In the industry towards automation and computerization. Among plants surveyed during the review study, processors utilizing these types of advanced systems have attained a high level of compliance. There is a definite trend toward the use of larger reactors in the PVC industry. Economic and emission control advantages of these larger systems are discussed in Section 4.0. The tendency to minimize the number of PVC resin grades has also been noted. The "grocery store" processor, with many small reactors producing multiple grades of resin, is leaning towards the processing of fewer grades. One reason for this change is the difficulty and amount of time required for stripping RVC from certain specialty resins (as mentioned above). Reduction of energy consumption at EOC/VC plants is also being achieved through various process modifications. Steam consumption has been greatly reduced by Stauffer Chemical who uses the EDC reactor heat 2-12 SPI-06136