Document RJ8XB0RzMyy89dx3DaM8baD3a

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 5 77 WEST JACKSON BOULEVARD CHICAGO, ILLINOIS 60604 SUBJECT: FROM: THRU: TO: CLEAN AIR ACT INSPECTION REPORT Watertown Hops Company, Watertown, Wisconsin Dakota Prentice, Environmental Engineer AECAB (IL/IN) Nathan Frank, Section Supervisor AECAB (IL/IN) File BASIC INFORMATION Facility Name: Watertown Hops Company Facility Location: 1224 American Way, Watertown, WI Date of Inspection: June 26, 2023 EPA Inspector(s): 1. Dakota Prentice, Environmental Engineer 2. Laura Neudorf, Environmental Engineer Other Attendees: 1. Timothy Koel, Operations Manager - Watertown Hops Company 2. Dana Lephardt, Quality Manager - Watertown Hops Company 3. Mike Ryan, Chemical Engineer - Watertown Hops Company Contact Email Address: Timothy Koel - timothy.koel@millercoors.com Purpose of Inspection: to determine compliance with the Wisconsin state implementation plan (SIP) and the Clean Air Act Facility Type: Hops Extraction Facility Regulations Central to Inspection: The facility is currently subject only to provisions of the Wisconsin SIP and permits issued by the Wisconsin Department of Natural Resources (WDNR). Facility Name: Watertown Hops Company Facility Location: 1224 American Way, Watertown, Wisconsin Date of Inspection: June 26, 2023 Arrival Time: 10:10AM CDT Departure Time: 12:00PM CDT Inspection Type: Unannounced Inspection Announced Inspection OPENING CONFERENCE Presented Credentials Stated authority and purpose of inspection Provided Small Business Resource Information Sheet Small Business Resource Information Sheet not provided. Reason: Not a small business Provided CBI warning to facility The following information was obtained verbally from Watertown Hops personnel unless otherwise noted. Company Ownership: In approximately March of 2020, the ownership entity of the facility transitioned from MillerCoors LLC to Molson Coors Beverage Company LLC. Process Description: The main raw material is CO2 extracted hops. The CO2 extraction step is performed offsite. This raw material consists of three main components: 1. alpha acids, 50% (humulones), 2. beta acids, 15-30% (lupulones), and 3. hop oil. Production starts with isomerization of the alpha acids in a reaction vessel to form iso-alpha acids. The iso-alpha acids are first separated from the beta acids and hop oils with water, pH, and temperature, and the beta acids and hop oils are then separated with temperature. Each component is sent to a separate tank. The hop oil is a final product and does not undergo additional processing. Water in the iso-alpha acid material is removed with pH adjustment and treated on-site, and the iso-alpha acid material can then follow multiple processing pathways for formation of final products. One of those processes produces a tetrahydro-iso-alpha acid and uses ethanol. This ethanol is removed from the final product using two thin-film evaporators in parallel and recovered for reuse using a distillation unit. The betaacid material follows only one processing pathway, to produce a tetrahydro-iso-alpha acid product. Staff Interview: The facility has 16 employees and operates 24 hours per day, Monday through Friday. The facility uses nine vent condensers to control emissions from tanks containing ethanol (Tanks 7, 12, 13-16, 18, DS1, and 63) and the distillation unit. An alarm is triggered if the cooling water is elevated and production cannot commence if the water is greater than 40F at the condenser inlets. Page 2 of 6 TOUR INFORMATION Facility Name: Watertown Hops Company Facility Location: 1224 American Way, Watertown, Wisconsin Date of Inspection: June 26, 2023 EPA Tour of the Facility: Yes Data Collected and Observations: EPA observed some production units and also accessed the roof of the facility to observe emission points using an optical gas imaging (OGI) camera. EPA was not allowed to image many production units with the OGI camera due to intrinsic safety concerns. The OGI camera observed gases exiting the "Packaging Common Vent", which routes material from Tank 61 to the atmosphere. Tank 61 was in use during this observation. Photos and/or Videos: were taken during the inspection. See Appendix A Field Measurements: were not taken during this inspection. CLOSING CONFERENCE Provided U.S. EPA point of contact to the facility Requested documents: The most recent operating permit issued by WDNR and the supporting permit application. Annual emission report with supporting calculations. An SDS for material in Tank 61. A process flow diagram. DIGITAL SIGNATURES DAKOTA Digitally signed by DAKOTA PRENTICE Report Author: ____P__R_E_N__T_I_C_E____13_:2_0:_13_-0_5_'00_' _________ Date: 2023.07.05 Frank, Digitally signed by Frank, Nathan Date: 2023.07.11 Section Supervisor: _N_a_t_h_a_n_______1_1:_58_:2_8 _-05_'0_0'______________ Page 3 of 6 Facility Name: Watertown Hops Company Facility Location: 1224 American Way, Watertown, Wisconsin Date of Inspection: June 26, 2023 APPENDICES AND ATTACHMENTS Appendix A - Digital Image Log Appendix B - Digital Video Log Page 4 of 6 Facility Name: Watertown Hops Company Facility Location: 1224 American Way, Watertown, Wisconsin Date of Inspection: June 26, 2023 APPENDIX A: DIGITAL IMAGE LOG 1. Inspector Name: D. Prentice 2. Archival Record Location: Region 5 Electronic Records Center Image Number File Name Date and Time (CDT) Description of Image 1 IMG_0507 6/26/23 11:24 AM Tank - 62 2 IMG_0508 6/26/23 Packaging Common Vent (Center 11:46 AM Stack) Note: Digital Image 1 (IMG_0507) has been claimed as confidential business information Page 5 of 6 Facility Name: Watertown Hops Company Facility Location: 1224 American Way, Watertown, Wisconsin Date of Inspection: June 26, 2023 APPENDIX A: DIGITAL VIDEO LOG 1. Inspector Name: L. Neudorf 2. Archival Record Location: Region 5 Electronic Records Center Video Number File Name Date Description of Video 1 MOV_3133 6/26/23 Packaging Common Vent Page 6 of 6