HomeMy WebLinkAboutAQ_F_1900015_20151102_ENF_SOC Special Order By Consent
ARAUCO PANELS USA, LLC
BEFORE THE NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
STATE OF NORTH CAROLINA )
COUNTY OF CHATHAM )
IN THE MATTER OF: SPECIAL ORDER BY CONSENT
ARAUCO PANELS USA, LLC )
SOC 2015-02
MONCURE MANUFACTURING SITE )
MONCURE, CHATHAM COUNTY )
NORTH CAROLINA )
[SITE NUMBER 05/19/00015]
This SPECIAL ORDER BY CONSENT (hereinafter referred to as the "ORDER") is made
and entered into pursuant to North Carolina General Statute 143-215.110 by and between
ARAUCO PANELS USA, LLC (hereafter referred to as "ARAUCO" or "COMPANY") and the
ENVIRONMENTAL MANAGEMENT COMMISSION,an agency of the State of North Carolina
(hereinafter referred to as the "COMMISSION").
WITNESSETH:
I. The COMMISSION and ARAUCO do hereby stipulate and agree to the following:
A. ARAUCO Panels USA LLC ("ARAUCO" or "COMPANY") operates a
manufacturing site that includes a Particleboard Manufacturing Facility ("PB
Facility") and a Medium Density Fiberboard Manufacturing Facility ("MDF
Facility") (hereafter referred to collectively as the "FACILITIES") in Moncure,
Chatham County, North Carolina. The FACILITIES currently operate under Air
Permit 03449T44.
B. The PB and MDF FACILITIES include "affected sources" subject to MACT
requirements under 40 CFR Part 63 Subpart DDDD ("Subpart DDDD" or MALT).
The FACILITIES are also subject to certain requirements under the Prevention of
Significant Deterioration(PSD)program and the State Toxic Air Pollutant program
under 15 NCAC 2D .1100. No exceedances of the North Carolina Acceptable
Special Order By Consent
ARAUCO PANELS USA, LLC
Ambient Levels are anticipated to occur as a result of increases in air toxics
emissions.
C. Air pollutants from the FACILITIES are controlled by several pollution control
devices, including Photo-catalytic Gas Treatment (PGT) systems on each
manufacturing line. The PB Facility includes one PGT system, while the MDF
Facility has two PGT systems. These systems were installed by the FACILITIES'
previous owner. The PGT units oxidize and thereby destroy volatile emissions,
including the hazardous air pollutants (HAPs) formaldehyde and methanol, using
hydrogen peroxide and UV lighting systems. The PGT units require significant
quantities of proprietary ferrous sulfate and oxalic acid solutions for catalyzing the
oxidation reaction. The UV lighting systems are difficult to maintain and require
frequent replacement due to the difficult operating environment.
D. On March 31", 2015, COMPANY representatives met with staff of the Division of
Air Quality (DAQ) from the Raleigh Regional Office, and Raleigh Central Office
Technical Services and Permitting Sections to discuss the current operating and
reliability problems with the PGT pollution control devices at the Facilities and
employee safety issues related to chemical exposure and UV-C radiation.
Hydrogen peroxide leaks have led to several fires at the Facilities. The PGT units
consume about 46,000 pounds of 50% hydrogen peroxide per day, approximately
15 million pounds per year. Three fires have occurred as a result of chemical
handling accidents related to the PGT's since 2013. An employee's leather boot
reacted and caught on fire when he walked through a small leak of hydrogen
peroxide in the chemical storage room in February 2013. A pinhole leak of
hydrogen peroxide accumulated on a nearby plastic tarp, reacted with the tarp, and
ignited into a fire in July 2013. A nitric acid tote leaked in the trailer of a delivery
truck causing the bed of the trailer to catch on fire in October 2014. Nitric acid mist
from small leaks in pumps has degraded all non-stainless steel structures in the PGT
chemical storage areas. Employees working in these areas are at risk to both
chemical burns and acid mist inhalation since mitigation tools in place may not be
effective in all cases. Maintenance of the UV light systems exposes employees to
UV-C radiation for which no feasible protection, other than a physical barrier,
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Special Order By Consent
ARAUCO PANELS USA, LLC
exists to prevent exposure and tissue damage. Visors and face shields may not be
completely effective and may still result in burns. Consequently, as UV light
maintenance has resulted in several incidents of employee skin and eye burns,
replacement of the control technology installed by the FACILITIES' previous
owner is required.
E. PGT operation requires a chemical reaction within a very narrow, low pH range
and is difficult to sustain on a continuous operational basis. For example, the PB
Facility Wet ESP utilized for particulate control requires a high caustic pH level for
consistent operation. The Wet ESP exhausts to the PGT unit and drives the pH
level up. To reduce the pH for the correct operating level for the PGT unit requires
continuous addition of 90% nitric acid to meet the required pH level, resulting in
cyclical pH swings in the PGT unit destabilizing the system and reduces the HAP
destruction efficiency. This pH adjustment requires the plant to utilize
approximately 650 gallons of 90% concentration nitric acid daily. In addition, the
defoamer chemical required for the Wet ESP also exhausts into the PGT unit and
further inhibits HAP destruction by consuming hydrogen peroxide in the PGT,
which is the critical chemical for HAP reduction.
F. The Moncure site was acquired by ARAUCO in 2012 and after thorough
investigation and firsthand experience operating the PB dryers, ARAUCO has
determined that the PB PGT is undersized for the airflow required to safely operate
the two PB dryers. The undersized unit causes system back pressure which has led
to dryer fires, and is causing the Wet ESP to go from negative to positive pressure
at points during continuous operation. In an attempt to alleviate this safety issue,
the Wellons heater was converted from wood-firing to natural gas in 2014 but the
fires have persisted.
G. The operation of the PGT units on a continuous basis includes use of hydrogen
peroxide, ferrous sulfate, oxalic acid, and nitric acid for the chemical reaction and
operation of UV lights and pumps. Substantial maintenance is required for each of
these systems, including the UV lights, spare parts and pump replacement. In
particular, .due to the corrosive operating environment, UV lights need to be
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Special Order By Consent
ARAUCO PANELS USA, LLC
completely replaced at least every 9 months and generate universal waste of
approximately 1,600 UV lamps and 800 ballasts per year.
H. In consideration of the significant employee and contractor safety concerns, fires,
and operational issues experienced and discussed above, the COMPANY has
requested an ORDER to allow shutdown of the PGT units in order to eliminate the
operational and safety concerns and to replace the units with alternate pollution
control devices while continuing manufacturing operations. Immediate shutdown
of the PGT units is required due to their location and space adjacent to the PB and
MDF manufacturing operations. In order to locate and construct the new control
devices,the peroxide and reaction tanks must be removed, as well as the PGT units.
I. This ORDER authorizes operation of the FACILITIES without operating the PGT
units for the period of time necessary for DAQ to evaluate applications and revise
the air permit and for the COMPANY to install, shakedown, and test new air
pollution control devices, and to implement all applicable requirements of this
ORDER. Potential emissions (based on 8760 hour operation) from the
particleboard plant while the PGT unit is being replaced will increase by
approximately 165 pounds per day of methanol and 340 pounds per day of
formaldehyde. Emissions from the MDF plant during PGT replacement will
increase by 1,270 pounds per day of methanol and 925 pounds per day of
formaldehyde. Upon cessation of PGT control operations, the DAQ will issue a
Notice of Violation (NOV) to the facility for violation of MACT Subpart DDDD
for operating the FACILITIES without MACT control. The COMPANY will
notify DAQ by letter, as provided in Section II below, of the shutdown of the PGT
units. The MDF FACILITY may exceed the permitted PSD avoidance limit for
VOCs depending on product mix and timing of the start-up of the replacement
control technology.
J. Installation of new air pollution control devices will likely require significant
additional water use in the devices and result in the need to discharge significant
quantities of treated water from the FACILITIES. As a result,the FACILITIES will
likely require NPDES surface water discharge permit(s) or other authorizations to
discharge to surface water. DAQ will work with the COMPANY and other DENR
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Special Order By Consent
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agencies for issuance of any necessary water permit(s) or authorizations to the
COMPANY on a timely basis. Given the large volume of water used in a Biofilter
if this type of unit is selected the unit could not be started up or operated without
the necessary water permit(s) or authorizations. In the event that issuance of the
NPDES permit by the Division of Water Resources is delayed beyond December
31, 2015, the schedules in the ORDER may require revision. In that event, DAQ
and the COMPANY will consult and revise them to the extent allowed by 15A
NCAC 2D .2200 or take other appropriate action.
K. During the period of this ORDER, all pollution control equipment at the
FACILITIES, other than the PGT units, that are required by the current air permit
shall continue to operate in compliance with all requirements.
L. The COMPANY has converted the resin used in its Particleboard manufacturing to
MDI, a formaldehyde-free material. As a result, formaldehyde and methanol
emissions from the operation have been significantly reduced.
THEREFORE, the COMMISSION and the COMPANY, desiring to resolve and settle the
compliance issues between them, have agreed to enter into this ORDER with the following terms
and conditions:
II. The COMPANY, desiring to operate in a safe and environmentally sound manner in
accordance with the rules and regulations of the COMMISSION does hereby agree to
perform the following activities:
A. MDF FACILITY
i. Within one day of PGT unit shutdown, the COMPANY shall officially
notify the DAQ by letter. The DAQ will issue a Notice of Violation for
operating the 40 CFR 63 MACT DDDD equipment without the appropriate
controls to demonstrate compliance.
ii. In the event that the FACILITY exceeds the permitted PSD avoidance limit
for VOCs, a stipulated penalty will be due per section III of this SOC. The
COMPANY shall officially notify the DAQ by letter within 14 days
following the end of the month that the PSD avoidance limit exceedance
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ARAUCO PANELS USA, LLC
occurs. If deemed necessary by the DAQ Director, a PSD permit
application shall be submitted within 120 days of notification by the DAQ.
iii. Air flow from the MDF press will be ducted to the furnace for combustion
of VOC and HAP emissions. The Company will commence construction
of the new ductwork within 30 days after execution of this Order, and
complete the duct work within 180 days after execution of this Order. The
ducting of these gases will result in the immediate control of approximately
20 tons of VOCs and 10 tons, respectively, of formaldehyde and methanol
per year.
iv. Within 90 days after the effective date of this ORDER, the COMPANY
shall file with DAQ an application for a revised permit for the installation
of a Biofilter or other alternative pollution control technology to replace
the MDF PGT units. If an alternative, non-MACT DDDD Table 2 control
technology is chosen, the facility shall also petition EPA Region IV for
operating parameters and copy the DAQ on the letter.
V. The COMPANY shall sign the necessary contract(s) for the purchase and
installation of the control technology to be installed within 6 months after
issuance of the revised permit by DAQ.
vi. The COMPANY shall commence construction according to the
specifications in the contract(s) within 3 months after signing of the
purchasing contracts.
vii. The COMPANY shall complete the installation according to the terms of
the contract(s) within 20 months after issuance of the revised permit.
viii. The COMPANY shall submit a test protocol at least 60 days prior to the
compliance test.
ix. The COMPANY shall conduct engineering evaluation, shakedown, and
compliance testing to demonstrate compliance with applicable permit
requirements and submit a test report within 180 days after completion of
installation.
X. The COMPANY shall submit no later than 14 days after the deadline for
completing each milestone required in Paragraph II.A.v through vii written
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ARAUCO PANELS USA, LLC
certification to the Air Quality Regional Supervisor, Raleigh Regional
Office, Division of Air Quality, whether such milestone has been
performed.
B. PB FACILITY
i. Within one day of PGT unit shutdown, the COMPANY shall officially
notify the DAQ by letter. The DAQ will issue a Notice of Violation for
operating the 40 CFR 63 MACT DDDD equipment without the appropriate
controls to demonstrate compliance.
ii. The COMPANY shall evaluate the practicability of installing a new
Biofilter Unit according to the following schedule.
iii. In order to properly evaluate seasonal temperature variations, testing and
evaluation of the Biofilter Unit shall be completed within one year of the
effective date of this ORDER. The evaluation will include venting the
particleboard dryer exhaust to atmosphere and capturing a slip stream from
this exhaust to route through a pilot unit. This will aid in determining the
effectiveness and viability of a pilot biological air treatment system when
receiving the caustic Wet ESP exhaust. If the pilot unit is successful, then
the facility will proceed with the engineering and acquisition of a biological
air treatment system.
iv. If a Biofilter Unit proves to be practicable for the PB FACILITY, the
COMPANY shall submit a permit application for installation within 90 days
after completion of the testing and evaluation.
V. If a Biofilter Unit does not prove to be practicable, the COMPANY shall
submit a permit application for installation of an Alternate Pollution Control
Device within 90 days after completion of the testing and evaluation of a
Biofilter Unit.
vi. Installation of either a Biofilter Unit or an Alternate Control Device shall
follow the same schedule and requirements as set forth above in Paragraph
II.A.ly-x.
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ARAUCO PANELS USA,LLC
III. The COMPANY shall pay the following civil penalties:
A. The COMPANY agrees to pay the COMMISSION a stipulated penalty of$1,000
per month for the period from shutdown of the PGT units until the new pollution
control units are operating. This sum is due and payable on a semiannual basis and
shall be paid with submittal of the FACILITIES' semiannual Title V reports by
January 30th and July 301h each calendar year.
B. The COMPANY agrees to pay the COMMISSION a stipulated penalty of$1,000
per month for each month that the MDF 12-month total PSD avoidance limit is
exceeded. This sum is due and payable on a semiannual basis and shall be paid
with submittal of the FACILITIES' semiannual Title V reports by January 30th and
July 30th each calendar year.
C. The COMPANY agrees to pay the COMMISSION a civil penalty in the amount of
$60,000. This amount shall be due and payable within 30 days of the effective date
of this ORDER.
IV. In the event that the COMPANY fails to comply with any deadline as set out in this
ORDER or fails to achieve final compliance with any applicable requirement in this
ORDER, the COMPANY agrees that,unless excused under Paragraph V, the COMPANY
will pay the COMMISSION according to the following schedule:
Deadlines and Requirements Stipulated Penalties
Failure to comply with any deadline in $500 per day for the first 5 days and
Paragraph 1I (A, and B) and Paragraph III $1000 per day thereafter.
Stipulated Penalty
Failure within thirty (30) days of receipt of the Director's written demand to pay the
penalties will be grounds for a collection action, which the Attorney General is hereby
authorized to initiate. By entering this ORDER, the COMPANY waives any and all
defenses and agrees that the sole issue in such action is if the COMPANY is excused
pursuant to Paragraph V of this ORDER. The COMPANY shall pay all costs, including
agency and attorney fees, associated with collection of a delinquent stipulated penalty.
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ARAUCO PANELS USA, LLC
V. The COMPANY's obligation to comply with the requirements set forth in this ORDER for
which a stipulated penalty may be assessed, may be delayed or excused only to the extent
that noncompliance is caused by circumstances beyond control of the COMPANY, as
determined by the DAQ Director(hereinafter referred to as the"DIRECTOR"). Contractor
delays or failure to obtain funding will not be considered events beyond the COMPANY's
control. If any such delaying event occurs,the COMPANY shall notify the DAQ in writing
within ten(10) days of encountering or discovering the delaying event, describing in detail
the event or delay, the precise cause(s) of the event or delay, the measure(s) taken and to
be taken by the COMPANY to prevent or minimize the event or delay, and the schedule
by which those measures will be implemented. If the DIRECTOR determines that non-
compliance with this ORDER was caused by circumstances beyond the control of the
COMPANY, the COMMISSION and the COMPANY jointly may stipulate and agree to a
written modification of this ORDER. Extension of any compliance date pursuant to this
Paragraph shall not extend any subsequent deadlines established in the ORDER unless the
subsequent deadline necessarily is dependent upon completion of the earlier deadline.
VI. This ORDER shall pertain only to that equipment, sources, and operations described in
Paragraph I.B of this ORDER. Any violation of Air Quality Standards resulting from these
emission units or any other sources or equipment for which the COMPANY is responsible,
shall subject the COMPANY to appropriate enforcement action pursuant to North Carolina
General Statute 143-215.114A.
VII. The COMPANY agrees to waive any rights it may have to seek judicial review to challenge
this ORDER or to seek a stay of enforcement of this ORDER in connection with any
judicial review of the State Implementation Plan. The COMMISSION acknowledges that
this waiver does not prohibit the COMPANY from seeking modification of this ORDER if
any regulatory standards upon which this ORDER is based are changed subsequent to its
execution. In such cases, the COMPANY may petition that the ORDER be modified to
reflect those regulatory changes.
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ARAUCO PANELS USA, LLC
VIII. In the event the COMMISSION or the DAQ find that reports, plans, specifications, or
permit applications required by Paragraph II are in any respect deficient or if additional
information is necessary to comply with the requirements of North Carolina General
Statutes 143-215.107 et seq., any regulations promulgated thereunder, or any other
applicable laws or regulations, the COMPANY shall be notified by the DAQ as soon as
possible. The COMPANY shall be afforded an opportunity to modify, amend or
supplement its submissions to make such submissions complete and appropriate
IX. All notices and reports required by this ORDER shall be delivered to:
Patrick Butler, P.E., Regional Air Quality Supervisor
N.C. Dept. of Environment and Natural Resources
3800 Barrett Drive, Suite 101
Raleigh,North Carolina 27609
All payments required from the COMPANY by this ORDER shall be delivered to:
Enforcement Group—Payments
NCDENR—DAQ
1641 Mail Service Center
Raleigh, North Carolina 27699-1641
X. This ORDER constitutes full and final settlement and satisfaction of all matters addressed
herein and any and all claims or prospective claims that the COMMISSION has or may
have for violations of regulations described in Paragraph I hereof, as of the date this
ORDER is approved by the COMMISSION and continuing until this Order terminates as
provided in Paragraph XVI. This ORDER shall not affect the COMPANY's obligation to
comply with any Federal, State, or local laws or regulations.
XI. Final approval and entry into this ORDER are subject to the requirements that the
COMMISSION give notice of proposed consent decrees to the public, and that the public
have at least thirty (30) days within which to comment on the ORDER.
XII. Should any provision of this ORDER be declared by a court of competent jurisdiction to
be inconsistent with Federal or State law and therefore unenforceable, the remaining
provisions hereof shall remain in full force and effect.
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Special Order By Consent
ARAUCO PANELS USA, LLC
XIII. Any modifications of this ORDER must be agreed to in writing signed by both parties
XIV. Except as otherwise set forth herein, this ORDER is not and shall not be interpreted to be
a permit or modification of an existing permit under Federal, State or local law, and shall
not be construed to waive or relieve the COMPANY of its obligations to comply in the
future with any permit
XV. In the event of termination of operations and closure of the FACILITIES, the COMPANY
shall notify the DIRECTOR in writing, within five (5) business days of the earlier of(i)
the date any Workers Adjustment and Retraining Notification Act(WARNA),notification,
or (ii) FACILITY closure. Receipt of said notification from the COMPANY by the
DIRECTOR shall terminate any obligations of the COMPANY pursuant to this ORDER,
including those pertaining to stipulated penalties, and this ORDER shall become null and
void in its applicability to the COMPANY. The COMPANY acknowledges its
responsibilities pursuant to this ORDER from the date of final approval and entry of this
ORDER, through the date of receipt by the DIRECTOR of notification of closure required
by this Paragraph.
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Special Order By Consent
ARAUCO PANELS USA, LLC
XVI. This ORDER is effective on execution by the Division of Air Quality and shall expire on
September 30, 2020.
�k
This the day of , 2015.
ATTESTED: ARAUCO PANELS USA, LLC
BY:
Tom Quesenberfy
Manufacturing Director
Moncure,N.C.
APPROVED AND ACCEPTED:
BY:
Environmental Management Commission
DATE: �l
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