Document Z4aq1kB5agzEqwX00339nQZD8

..;:, = ~;s.. ~\~EO s,,.b-.. ~ {) :$ a ~~CJ % .. ~~"' ,..,~~ l"-4L PRO~~C. UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REG ION 5 77 WEST JACKSON BOULEVARD CHICAGO, IL 60604-3590 CERTIFIED MAIL RETURN RECEIPT REQUESTED AUG 3 0 2019 REPLY TO THE ATTENTION OF Tom Willis, Director of Health, Environmental and Safety ChernDesign Products Inc. 2 Stanton Street Marinette, Wisconsin 54143 Re: Finding of Violation ChernDesign Products blc. Marinette, Wisconsin Dear Mr. Willis: The U.S. Environmental Protection Agency is issuing the enclosed Finding of Violation (FOV) to ChemDesign Products Inc. under Section l 13(a)(3) of the Clean Air Act, 42 U.S.C. 7413(a)(3). We find that you are violating the National Emission Standards for Hazardous Air Pollutants for Chemical Manufacturing Area Sources, 40 C.F.R. Part 63, Subpart VVVVVV, at your Marinette, Wisconsin facility. Section 113 of the Clean Air Act gives us several enforcement options. These options inc.Jude issuing an administrative compliance order, issuing an administrative penalty order, and bringing a judicial civil or criminal action. We are offering you an opportunity to confer with us about the violations alleged in the FOY. The conference will give you an opportunity to present information on the specific findings of violation, any efforts you have taken to comply and the steps you will take to prevent future violations. In addition, in order to make tbe conference more productive, we encourage you to submit to us information responsive to the FOV prior to the conference date. Please plan for your facility 's technical and management personnel to attend the conference to discuss compliance measures and commitments. You may have an attorney represent you at this conference. The EPA contacts in this matter are Alexandra Letuchy and Albana Bega. You may call them at (312) 886-6035 or (312) 353-4789 to request a conference. You should make the request within 10 calendar days following receipt of this letter. We should hold any conference within 30 calendar days following receipt of this letter. Sincerely, ~r' Michael D. Harris Acting Director Enforcement and Compliance Assurance Division Enclosure cc: Maria Hill, Chief, Wisconsin Depaitment of Natural Resources UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGIONS IN THE MATTER OF: ChemDesign Products Inc. Marinette, Wisconsin Proceedings Pursuant to Section 113(a)(l) of the Clean Air Act, 42 U.S.C. 7413(a)(l) ) ) ) FINDING OF VIOLATION ) ) EPA-5-19-WI-06 ) ) ) ) FINDING OF VIOLATION The U.S. Environmental Protection Agency (EPA) is issuing this Finding of Violation under Section 113(a)(3) of the Clean Air Act (CAA), 42 U.S.C. 7413(a)(3). EPA finds that ChemDesign Products Inc. ("ChemDesign") is violating the National Emission Standards for Hazardous Air Pollutants (NESHAP) for Chemical Manufacturing Area Sources at 40 C.F.R. Part 63, Subpart VVVVVV, as follows: Statuton and Regulatory Background National Emission Standards for Hazardous Air Pollutants I. Section 112 of the Act 42 U.S.C. 7412(cJ, requires the EPA to promulgate a list of all categories and subcategories of new and existing "major sources" of hazardous air pollutants (HAPs), and establish emissions standards for the categories and subcategories. These emission standards are known as the National Emission Standards for Hazardous Air Pollutants (NESHAPs). The EPA codified these standards at 40 C.F.R. Parts 61 and 63. 2. Federal regulations at 40 C.F.R. Part 63, Subpart A, contain the general provisions for the NESHAP. 3. "Major source" is defined as "any stationary source or group of stationary sources located within a contiguous area and under common control that emits or has the potential to emit considering controls, in the aggregate, 10 tons per year or more of any hazardous air pollutant or 25 tons per year or more of any combination of hazardous air pollutants." 42 U.S.C. 7412(a)(l). 4. "Area source" means "any stationary source of hazardous air pollutants that is not a major source as defined in this part." 42 U.S C. 7412(a)(2). 5. "Stationary source' is defined as "'any building, structure. facility, or installation, which emits or may emit any air pollutant' 42 U.S.C. 7411(a)(3). 6. "Hazardous air pollutant" is defined as "any air pollutant listed in or pursuant to" Section l 12(b) of the Act 42 U.S.C. 7412(a)(6). 7. Section I 12(i)(3) of the Act, 42 U.S.C. 7412(i)(3), prohibits any person subject to a NESHAP from operating a source in violation of a NESHAP after its effective date. See also 40 C.F.R. 61.05 and 63.4. 8. Federal regulations at 40 C.F.R. 63.9(h)(2)(ii) require submission of a Notification of Compliance Status "before the close of business on the 60th day following the completion of the relevant compliance demonstration activity specified m the reievant standard. ' NESHAP for Chemical Manufacturing Area Sources 9. On October 29, 2009, EPA promulgated the NESHAP for Chemical Manufacturing Area Sources, codified at 40 C.F.R. Part 63, Subpart VVVVVV ("NESHAP VVVVVV"). 74 Fed. Reg. 56008. NESHAP VVVVVV establishes emission standards, requirements to demonstrate initial and continuous compliance with emission limits, operating limits, work practice standards, and recordkeeping requirements associated with chemical manufacturing area sources. 40 C.F.R. 63. I I 494. 10. Federal regulations at 40 C.F.R. 63. l J494(a) state, in part, that "you are subject to this subpart if you own or operate a chemical manufacturing process unit (CMPU) that meets the conditions specified in paragraphs (a)(l) and (2) of this section." 11. The condition specified at 40 C.f.R. 63. l 1494(a)(l) states that "[t]he CMPU is located at an area source of hazardous air pollutant (HAP) emissions." 12. The condition specified at 40 C.F.R. 63.11494(a)(2) states that the "H.A_p listed in Table 1 to this subpart (Table 1 1-LI\P) are present in the CMPU, as specified in paragraph (a)(2)(i), (ii), (iii), or (iv) of this section." 13. Federal regulations at 40 C.F.R. 63.l 1494(a)(2)(i) state that "[t]he CMPU uses as feedstock, any material that contains qui noline, manganese, and/or trivalent chromium at an individual concentration greater than 1.0 percent by weight, or any other Table l HAP at an individual concentration greater than 0.1 percent by weight." 14. Federal regulations at 40 C.F.R. 63. l 1494(a)(2)(iii) state that '[h]ydrazine and/or Table 1 organic HAP other than quinoline are generated as byproduct and are present in the CMPU in any liquid stream (process or waste), continuous process vent, or batch process vent at an individual concentration greater than 0.1 percent by weight." 15. Table 1 to NESHAP VVVVVV identifies "[m]ethylene chloride" as a HAP used to determine the applicability ofNESHAP VVVVVV. 16. Federal regulations at 40 C.F.R. 63. l l 502(b) define "chemical manufacturing process," in part, as "all equipment which collectively fU11ctions to produce a product or isolated intermediate. A process includes, but is not limited to any, all, or a combination of reaction, recovery, separation, purification, or other activity, operation, manufacture, or treatment which are used to produce a product or isolated intermediate." 2 17. Federal regulations at 40 C.F.R. 63. l 1494(b) state the following: "A CMPU includes all process vessels, equipment, and activities necessary to operate a chemical manufacturing process that produces a material, or a family of materials described by North American Industry Classification System (NAICS) code 325. A CMPU consists of one or more unit operations and any associated recovery devices. A CMPU also includes each storage tank, transfer operation, surge control vessel, and bottoms receiver associated with the production of such NAICS code 325 materials." 18. Federal regulations at 40 C.F.R. 63.J 1494(d)(l) state, "[a]n affected source is an existing source if you commenced construction or reconstruction of the affected source before October 6, 2008." 19. Federal regulations at 40 C.F.R. 63.l 1494(f) state, "[i]fyou own or operate an existing affected source, you must achieve compliance with the applicable provisions in this subpart no later than March 21, 2013." 20. Federal regulations at 40 C.F.R. 63.11495(a)(3) state, "[yJou must conduct inspections of process vessels and equipment for each CMPU in organic HAP service or metal HAP service, as specified in paragraphs (a)(3)(i) through (v) ofthis section, to demonstrate compliance with paragraph (a)(l) of this section and to determine that the process vessels and equipment are sound and free ofleaks. Alternatively, except when the subject CMPU contains metal H/,_P as particulate, inspections may be conducted while the subject process vessels and equipment are in volatile organic compounds (VOC) service, provided that leaks can be detected when in VOC service. (i) Inspections must be conducted at least quarterly. (ii) For these inspections, detection methods incorporating sight, sound, or smell are acceptable. Indications of a leak identified using such methods constitute a leak unless you demonstrate that the indications of a leak are due to a condition other than loss of HAP. If indications of a leak are determined not to be HAP in one quarterly monitoring period, you must still perform the inspection and demonstration in the next quarterly monitoring period. (iii) As an alternative to conducting inspections, as specified in paragraph (a)(3)(ii) of this section, you may use Method 21 of 40 C.F.R. Part 60, Appendix A-7, with a leak definition of 500 ppmv to detect leaks. You may also use Method 21 with a leak definition of 500 ppmv to detem1ine if indications of a leak identified during an inspection conducted in accordance with paragraph (a)(3)(ii) of this section are due to a condition other than loss of HAP. The procedures in this paragraph (a)(3)(iii) may not be used as an alternative to the inspection required by paragraph (a)(3)(ii) of this section for process vessels that contain metal HAP as particulate. (iv) Inspections must be conducted while the subject CM:PU is operating. (v) No inspection is required in a calendar quarter during which the subject CMPU does not operate for the entire calendar quarter and is not in organic HAP 3 service or metal HAP service. If the CMPU operates at all during a calendar quarter, an inspection is required." 21. Federal regulations at 40 C.F.R.63.11495(4) state that "[y]ou must repair any leak within 15 calendar days after detection of the leak, or document the reason for any delay of repair. For the purposes of this paragraph (a)(4), a leak will be considered "repaired" if a condition specified in paragraph (a)(4)(i), (ii), or (iii) of this section is met." 22. Federal regulations at 40 C.F.R. 63 .11495(5) state that "[yJou must keep records of the dates and results of each inspection event, the dates of equipment repairs, and, if applicable, the reasons for any delay in repair." 23. Federal regulations at 40 C.F.R. 63.l 1499(a) state that "[i]fthe cooling water flow rate in your heat exchange system is equal to or greater than 8,000 gal/min and is not meeting one or more of the conditions in 63.104(a), then yon must comply with one of the requirements specified in Table 8 to this subpart.'' 24. Table 8 to NESHAP VVVVVV, I.a., states that for "[e]ach heat exchange system with a cooling water flow rate :>8,000 gal/min and not meeting one or more of the conditions in 63.104(a)," you must comply with "the monitoring requirements in 63.104(c), the leak repair requirements in 63 .104(d) and (e), and the recordkeeping and reporting requirements in 63.l 04(f)." 25. Federal regulations at 40 C.F.R. 63. l 150l(b) provide a list of additional infonnation that must be included in the Notification of Compliance Status. 26. Federal regulations at 40 C.F.R.63.11502(b) define equipment as "each pump, compressor, agitator, pressure relief device, sampling cormection system, open-ended valve or line, valve, connector, and instrumentation system in or associated with a CMPU." Factual Allegation 27. ChemDesign ovms and operates a chemical manufacturing facility at 2 Stanton Street in Marinette, Wisconsin ("Facility"). 28. ChemDesign operates a "chemical manufacturing process," as defined at 40 C.F.R. 63. l l 502(b), at the Facility to produce a NAICS code 325 material. 29. ChemDesign operates a CMPU, as defined in 40 C.F.R. 63 .11494(b), that uses methylene chloride at an individual concentration greater than 0.1 percent by weight. 30. According to the Toxics Release Inventory, the Facility has emitted less than 10 tons per year of any hazardous air pollutant and less than 25 tons per year of any combined hazardous air pollutants since at least 2013. ChemDesign's federally enforceable operating Permit No. 438008340-F20 limits its facility-wide emissions of each HAP to less than 9.5 tons for each period of 12 consecutive months, and, of combined HAPs, to less than 24.5 tons for each period of 12 consecutive months. ""'' 4 3L On April 30, 2019, EPA conducted an unannounced CAA investigation of the Facility for compliance with the NESHAP VVVVVV (2019 Inspection). 32. During the 2019 Inspection, EPA discovered that the Facility has not complied with the NESHAP VVVVVV and requested that ChemDesign conduct an analysis of applicability and compliance requirements with the NESHAP VVVVVV. 33. On May 8, 2019, ChemDesign submitted to EPA a document titled, "Documentation and Evaluation of Applicability and Compliance Requirements for NESHAP VVVVVV," which states, among other things, that the Facility will need to implement a leak detection and repair program on process vessels, equipment, and small heat exchange systems associated with the CMPU. The document states that ChemDesign submitted an initial notification on February 25, 2010, but does not include any information on submission of the Notification of Compliance Status. Violations 34. From at least May 2013 to May 2019, ChemDesign failed to comply with applicable leak detection monitoring requirements, leak repair requirements, and recordkeeping and repo11ing requirements, in violation ofNESHAP VVVVVV at 40 C.F.R. 63.11495 and 63.l 1499(a), and Table 8 to NESHAP VVVVVV, I .a. 35. ChernDesign failed to submit a Notification of Compliance Status, in Yiolation of NESHAP Subpart A at 40 C.F.R. 63.9(h)(2)(i) and NESHAP VVVVVV at 40 CFR. 63.1150l(b). Date -t17Y Michael D. Harris Acting Director Enforcement and Compliance Assurance Division 5 SEPA Ur>it"d s,ates EfJv'ironm,mra! Protac1iun Ager>Cy Office of Enforcement and Compliance Assurance EPA-300-B-17-001 June 2017 The United States Environmental Protection Agency provides an array ofresources to help small businesses understand and comply with federal and state enviromnental laws. In addition to helping small businesses understand their environmental obligations and improve compliance, these resources will also help such businesses find cost-effective ways to comply through pollution prevention techniques and innovative technologies. Office of Small and Disadvantaged Business Utilization (OSDBU) \h/\\'V.'. epa. 2 ov/abo utepa/abo ut-o ffi cesmal1-and-disa dvanta 2 ed-bu sin essut11lzati on-osdbu EPA's OSBBU advocates and advances business, regulatory, and environmental compliance concerns of small and socio-economically disadvantaged businesses. EPA's Asbestos Small Business Ombudsman (ASBO) \!\7\\'\'>'.ena. 2:ov 'resour('es-sm al 1bu sin esses asbestos-srnal l-husinessombudsman or 1-800-368-5888 The EPA ASBO serves as a conduit for small businesses to access EPA and facilitates communications between the small business community and the Agency. Small Business Environmental Assistance Program https: i/nati onalsbeap.orn This program provides a "one-stop shop'1 for small businesses and assistance providers seeking informatjon on a wide range of environmental topics and statespecific environmental compliance assistance resources. EPA's Compliance Assistance Homepage ,1ir,vw .eoa. gov/compliance This page is a gateway to industry and statute-specific environmental resources. from extensive web-based information to hotlines and compliance assistance specialists. Compliance Assistance Centers ,vwv,.. comp1ianceass istance.ner EPA sponsored Compliance Assistance Centers provide information targeted to industries with many small businesses. They were developed in partnership with industry, universities and other federal and state agencies. Agriculture V,'V\'W. epa. 20v/agriculture Automotive Recycling WW\V. ccarcemer.org Automotive Senice and Repair W\Y\\'.ccar-2reenlink.cir12 or l-888GRN-LINK Chemical Manufacturing \','\\ w.chema11iancc.on1. Construction WW\1'' .cicacenter.on.'.. Education \\'\'iW .carnpuserc .or2 Food Processing \\'\Vw.fpeac.onz Healthcare ~-~W\-V.hercenter. oJ:g_ Local Government \YWw.lQean.org Surface Finishing ht1p:.:.1\vww .sterc.orn Paints and Coatings \V'v\'\V. paintcenter. Of Printing .:-:_~\\'c'.Dl]eacorg Ports \., w\\. poncomplian ce. or 2. Transportation W\Y\V.tercenter.orn U.S. Border Compliance and Import/Export Issues \VWW. bordercentcr. orQ. EPA Hotlines and Clearinghouses \VW\V. eoa. 110v/horn e/ca-h ot.l in es_ EPA sponsors many free hotlines and clearinghouses that provide convenient assistance regarding environmental requirements. Examples include: Clean Air Technology Center (CATC) Info-line \\'\V\\.epa.2:oy/cmc or 1-919-54 l -0800 Superfond, TRI, EPCRA, RMP, and Oil Information Center l -800-424-9346 EPA Imported Vehicles and Engines Puhlic Helpline W\Vw.epa.2:ov/otaq/imoorts or 1-734-214-4]00 National Pesticide Information Center _www.npic.orst.edu or 1-800-858-7378 National Response Center Hotline to report oil and hazardous substance spills http:/inrc.usc~.mil or l-800-424-8802 Pollution Prevention Information Clearinghouse (PP! C) wwv-i. epa. g ov./p2/pol1mion-preventionrcso urces#ppic or 1-202-566-0799 Safe Drinking Water Hotline vv11,/w. epa. 20v..:2.:round-walCr-and-dri nkin !2water/safe-drinki n2-\v ater-hotl ine or 1800-426-4791 Toxic Substances Control Act (TSCA) Hotline tsca-hotline@epa.gov or 1-202-554-1404 Small Entity Compliance Guides h1 tps ://W\\~\\.'.epa.2:.ov/reg- flex/sm al 1-entitv-comp11 ance2:ui des EPA publishes a Small Entity Compliance Guide (SECG) for every rule for which the Agency has prepared a final .,..,~c_:1_11::itc---rv fl('Y:ih11-itv ~n.81\'C:.ic::__ in 8!"'('nrrl:;inc-f' Y\'ith SP-f'tinn 60-4 of the Regulatory Flexibility Act (RFA). Regional Small Business Liaisons www. epa. 2.ov/resources- small-businesses/epa-re!2:i onaloffi ce-small-business-liaisons The U.S. Environmental Protection Agency (EPA) Regional Small Business Liaison (RSBL) is the primary regional contact and often the expert on small business assistance, advocacy, and outreach. The RSBL is the regional voice for the EPA Asbestos and Small Business Ombudsman (ASBO). State Resource Locators \VW\V .envcap.or2./state1.ools The Locators provide state-specific contacts, regulations and resources covering the major environmental Jaws. State Small Business Environmental Assistance Programs (SBEAPs) b.ttns_: /inati onal sbear,. or2/stat es.'] ist State SBEAPs help small businesses and assistance providers understand environmental requirements and sustainable business practices through workshops. traini11gs and site visits. EPA's Tribal Portal \VWW .epa.s:i.ov /tribalportal The Portal helps users locate tribal-related infonnation within EPA and other federal agencies. EPA Compliance Incentives EPA provides ince1itives for environmental compliance. By participating in compliance assistance programs or voluntarily disclosing and promptly correcting violations before an enforcement action has been initiated, businesses may be eligible for penalty waivers or reductions. EPA has two such policies that may apply to small businesses: EPA's Small Business Compliance Policy \V\VW. eua. 2:.ov/enforcement/small-businesses-andenforcement EPA's Audit Policy \\V\.'\V. eria. o-ov /com P- li an ce /epas-audit-po1icv Commenting on Federal Enforcement Actions and Compliance Activities The Small Business Regulatory Enforcement Fairness Act (SBREFA) established a SBREFA Ombudsman and 10 Regional Fairness Boards to receive comments from sm211 hi1sinf':s<::P:" ;;:ih011t frdf'r?1 ;:ip-en;-:v P:nfon-P:rnent actions. If yon believe that you fall within the Small Business Administration's definition of a sma11 business (based on yonr North American Industry Classification System designation, number of employees or annual receipts, as defined at 13 C.F.R. 121.201; in most cases, this means a business with 500 or fewer employees), and wish to comment on federal enforcement and compliance activities, call the SBREFA Ombudsman's toll-free number at l -888-REG-FAIR (1-888-734-3247). Every small business that is the subject of an enforcement or compliance action is entitled to comment on the Agency's actions without fear of retaliation. EPA employees are prohibited from using enforcement or any other means of retaliation against any member of the regulated comm unity in response to comments made under SBREFA. Your Duty to Comply If you receive compliance a<;sistance or submit a comment to the SBREFA Ombudsman or Regional Fairness Boards, you still have the duty to com ply with the law, including providing timely responses to EPA information requests. administrative or civil complaints1 other enforcement actjons or communications. The assistance information and comment processes do not give you any new rights or defenses in any enforcement action. These processes also do not affect EPA's obligation to protect public health or the environment Ullder any of the environmental statutes it enforces, including the right to take emergency remedial or emergency response actions when appropriate. Those decisions will be based on the facts in each situation. The SBREFA Ombudsman and Fairness Boards do not participate in resolving EPA's enforcement actions. Also, remember that to presen1e your rights, you need to comply with all rules governing the enforcement process. EPA is disseminating this information to you without making a determination that your business or organization is a small business as defined by Section 222 of the Small Business Regulatory Enforcement Fairness Act or related provisions. .'lune 1017 - - - - - - - - - - - - - - - - - - - - - - - - - - CERTlFICATE OF MAILING I certify that I sent a Notice of Violation, No . EPA-5-19-WI-06, by Certified Mail, Return Receipt Requested, to: Tom Willis, Director of Health, Environmental and Safety ChemDesign Products Inc. 2 Stanton Street Marinette, \Visconsin 54143 I also certify that I sent copies of the Notice of Violation by email to: Maria Hill, Chief Compliance, Enforcement, and Emission Inventory Section Air Managment Pro gram Environmental Protection Division Wisconsin Department of Natural Resources On the /11 da;1 0f 8e:>mb-e,(2_ 2019. - - - - - < ~ ~ ...~ - - - - - - - - - - - - - - - Program Technician AECAB, PAS CERTIFIED MAIL RECEIPTNlJMBER: t0l9 D IYO DOct) 611.2 37cJ 7