AQ_F_1900015_20110920_ENF_Enf-FND

STATE OF NORTH CAROLINA NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
COUNTY OF CHATHAM FILE NO. DAQ 2011-054
IN THE MATTER OF: )
UNIBOARD USA L,LC )
FOR VIOLATION OF: )
AIR PERMIT 03449T35/T36; ) CIVIL PENALTY ASSESSMENT
15A NCAC 21) .0515; )
40 CFR PART 63; AND )
15A NCAC 2Q .0317 )
Acting pursuant to North Carolina General Statutes (G.S.) 143-215.1 14A, 1. Sheila C. Holman. Director
of the Division of Air Quality (DAQ), make the following:
I. FINDINGS OF FACT:
A. Uniboard USA LLC (Uniboard) operates a particleboard and medium density fiberboard (MDF)
manufacturin- facility located in Moncure. Chatharn County, North Carolina. This facility has a
county premise number of 1900015.
B. Uniboard was issued Air Permit Nos. 03449T35 on October 15. 2009 and 03449T36 on October
18. 2010. both with an expiration date of Septernbcr 30. 2014, for the construction/operation of air
emission sources and/or air cleaning devices. These were the effective permits during the period
in which the violations occurred.
C. Said permits contain stipulation 2.I.D.1 . regarding compliance of the MDF plant with 15A NCAC
2D .0515, "Particulates from Miscellaneous Industrial Process." Permit stipulation 2.1 .D.l.b
states, in part, the following:
"Under the provisions of NCGS 14.3-21 5.108, the Pernzittee shall demonstrate
compliance i3Oi.h the emission linzit(s) above by testing the emission sources in Table
2.I.D.1 in accordance i1 1h a testing protocol approved by the DAO. Details of the
ertjis,sions testing and reporting requirements can be foe.nnd in Section 3 - General
Condition.JI. 1estin�r shall be completed not Inter thcrtt I80 days q/ier the stc7rt-itp of
the affected f icility. The Permiittee shall szthinit ct written report o/the test(S) results to
the Regional Supervisor, D_AO ivithin 60 days of completion of the test. "
The initial start date for the MDF plant was May 24, 2010. The performance test to demonstrate
compliance with 15A NCAC 2D .0515 should have been completed by November 20, 2010. The
required testing was not conducted until May 2011.

Uniboard USA LLC
DAQ 201 1-054
Page 2 of 5
D. Said permits contain stipulation 2.2.A.4. regarding compliance of the MDF plant with 40 CFR 63,
Subpart DDDD, National Emission Standards for Hazardous Air Pollutants: Plywood and
Composites Wood Product. Permit stipulations 2.2.A.4. k—m state, in part, the following:
"The Permittee shall conduct pe7 formance tests no later than 180 calendar days after
initial startup or no later than 180 calendar days after the compliance date that is
specified,for your source in 40 CFR 63.2233 and according to according to 40 CFR
63.7(a)(2), whichever is later, "
The initial start date for the MDF plant was May 24, 2010. The performance test to demonstrate
compliance with 40 CFR 63, Subpart DDDD should have been completed by November 20, 2010.
The required testing was not conducted until May 2011.
E. Said permits contain stipulation 2.23 regarding compliance of the MDF plant with 15A NCAC
2Q .0317, "Avoidance of Prevention of Signification Deterioration (PSD)." Permit stipulations
2.2.B.1. b - c state, in part; the following:
"If the testing is required...[t]esting shall be completed not later than 180 days after
the start-up of the affected.facility. The Permitte.e shall submit a written report of the
lest(s) results to the Regional Supervisor, DAQ within 60 days of completion of the
test. "
The initial start date for the MDF plant was May 24, 2010. The performance test to demonstrate
compliance with 15A NCAC 2Q .0317 should have been completed by November 20, 2010. The
required testing was not conducted until May 2011.
F. Said permits also contain General Permit Stipulation 3.F. that reads as follows:
"The facility shall be properly operated and maintained at all times in a manner that will
effect an overall reduction in air pollution. Unless otherwise specified by this permit, no
emission source may be operated without the concurrent operation of its associated air
pollution control device(s) and appurtenances. "
• A urea/water injection system (CD02-A) is listed on the permit as controlling
emissions from the Energy System. The second half 2010 semiannual report indicated
that the urea/water injection system had not been.commissioned even though the
Energy System had been operating since May 24, 2010. The urea/water injection
system was subsequently put into service on February 14, 2011.
• A bagfilter (CD-3585) is listed on the permit as controlling emissions from a green
chip.flaker operation. In a letter dated February 2, 2011, the facility indicated that the
bagfilter(CD-3585) was not operating for 29 production days.duriig the period of
October 25, 2010 to January 21, 2011.
• The particleboard plant is required to operate a minimum of two of the three fields in
the Wet ESP (CD-PB-WESP). The facility indicated in the first and second half 2010

Uniboard USA LLC
DAQ 201 1-054
Pate 3 of
semiannual reports that only, one field was operated on 23 occasions from March 14.
2010 to December 18, 2010.
6 The first half 2010 semiannual report indicated that for a period of 57.95 hours in April
2010. the MDF Press Area exhaust bypassed any control equipment and went directly
to the atmosphere. Exhausting the uncontrolled emissions from the MDF Press Area
represents an air permit violation.
G. A Notice of ViolatiorL/Notice of Recommendation for Enforcement (NOV/NRE) dated February
17. 2011 was sent to Uniboard for the violations noted in Findings of Fact C through F.
H. A copy of Uniboard's response letter to the NOWNTRE was received by the RRO on March 11.
2011. DAQ representatives met with Uniboard representatives on March 23, 2011 to discuss the
details of the response letter. DAQ maintains all violations cited in February 17, 2011 NOV/NRE
are valid.
I. Prior to the current violations, the facility has been issued one (1) NOV and four (4) NOV/NI\�E-s
within the last five (5) years.
• On May 3, 2006, DAQ issued a NOV/NRE to ATC Panels Inc. (foriner owner) for operating
particleboard dryers vwithout the concurrent operation of associated regenerative oxidizer. To
resolve these violations the company entered a Special Order by Consent (SOC) that included
civil penalties of$37,500.
• ATC Panels Inc. was unable to come into compliance with MACT Subpart DDDD for its
particleboard plant by the extended compliance date of October 1, 2008, On September 9.
2008. ATC Panels. Inc. and DAQ entered into a Special Order by Consent (SOC 2008-002) to
resolve ongoing noncompliance with MACT Subpart DDDD. Under the SOC, the facilit�7 had
to pay $7.500.
• On December 5, 2008, the DAQ issued a demand for payment to ATC Panels, Inc under SOC
2008-002. The SOC required that a semi-annual progress report be submitted to the DAQ by
October 1, 2008. ATC Panels, Inc, submitted the required progress report via e-mail on
October 30. 2008, which was 29 days after the required deadline. Under the terms of the SOC.
the DAQ required payment of the stipulated penalty of$26,500 ($500 for the first five days
and $1,000 per day for the remaining 24 days of delay in submitting the progress report) for
the late report.
a A NOV dated October 22, 2008 was issued to Uniboard for the failure to submit an ownership
change permit application and second quarter 2008 and first half 2008 compliance reports.
0 A NOV/NRE dated August 12. 2009 was issued to Uniboard for not performing a performance
test by the due date. A civil penalty of$4,292, including costs, was assessed on December 2.
2009 for this violation. The penalty was paid in full on February 18, 2010.

Uniboard USA LLC
DAQ 2011-054
Page 4 of 5
• A NOV/NRE dated March 4, 2010 was issued to Uniboard for failure to submit a second half
of 2009 compliance report by January 30, 2010. A civil penalty of$1228, including costs, was
assessed on May 3, 2010. The penalty was paid in full on December 15, 2010.
• A NOV/NRE dated May 4, 2010 was issued to Uniboard for failure to develop a Startup,
Shutdown, and Malfunction Plan for the particleboard and MD_ F plant by the deadline. No
civil penalty was assessed.
J. The costs of investigation or inspection in this matter totaled $571..00.
Based upon the above Findings of Fact, I make the following:
11. CONCLUSIONS OF LAW:
A. Air Permit Nos. 03449T35/T36 are required by and issued pursuant to G.S. 143-215.108.
B. Uniboard USA LLC was in violation of Permit Stipulations 2.l.D.l.b., 2.2.A.41-m., 2.2.B.Le.,
and General Permit Stipulation 31. as.detailed in Findings of Fact C through F.
C. G.S. 143-215.114A provides that a civil penalty of not more than twenty-.five thousand dollars
($25,000.00) per violation may be assessed against a person who violates or fails to act in
accordance with the terms, conditions, or requirements of a permit required by G.S. 143-215.108
or who violates any regulation adopted by the Environmental Management Commission.
D. G.S. 143-215.3(a)(9) provides that the costs of any investigation or inspection may be assessed
against a person who violates any teen or condition of any permit issued pursuant to G.S. 143-
215.108 or who violates any regulation adopted by the Environmental Management Commission.
Based upon the above Findings of Fact and Conclusions of Law, I make.the following:
111. DECISION:
Uniboard USA LLC is hereby assessed a civil penalty of:
$ for one (1) violation of Air Permit Nos. 03449T35 and T36 Pen-nit Stipulation
2.l.D.Lb. for failing to complete a performance test by the due date.
$ � Q� for one (1) violation of Air Permit Nos. 03449T35 and T36 Permit Stipulation
2.2.A.41-m. for failing to complete a performance test by the due date.
$ 9bO0, DO for one (1) violation of Air Permit Nos. 03449T35 and T36 Permit Stipulation
2.2.B.I.e. for failing to complete a performance test and submit associated test
results by the due date.

Uniboard USA LLC
DAQ 2011-054
Page 5 of 5
�n for one (1) violation of Air Permit Nos. 03449T35 and T36 General Permit
Stipulation F. for operating the Energy System without the urea/water injection
system (CD02-A) from May 24, 2010 to February 14, 2011.
jC C) for one (1) violation of Air Permit Nos. 034491-35 and T36 General Permit
Stipulation F. for operating the green chip flaker without its bagfilter (CD-3585)
for 29 production days durinc the period of October 25, 2010 to January 21,
2011.
S �r for one (1) violation of Air Permit Nos. 03449T35 and T36 General Permit
Stipulation F. for operating the Wet LISP (CD-PB-WESP) with only one field on
23 occasions from March 14, 2010 to December 18, 2010.
_ for one (1) violation of Air Permit Nos. 03449'1735 and T36 General Permit
Stipulation F. for bypassing any control equipment from the MDF plant and
exhausting emissions to the atmosphere for 57.95 hours in April 2010.
TOTAL CIVIL PENALTY, which is 2-4- percent of the maximum penaln"
authorized by G.S. 143-215.1 14A.
$ 571.00 Investiaation costs
`7 TOTAL AMOUNT DUE
Pursuant to G.S. 143-215.1 14A in determining the amount of the penalty. 1 considered the factors listed in
G.S. 143B-282.1(b) and 15A NCAC 2J .0106, which are the following:
1) The degree and extent of harm to the natural resources of the State.to the public health. or to
private property resulting from the violation(s);
2) The duration and gravity of the violation,
3) The effect on ground or surface water quantity or quality or on air quality;
4) The cost of rectifying the damage;
5) The amount of money saved by noncompliance,
6) Whether the violation was committed willfully or intentionally;
7) The prior record of the violator in complying or failing to comply with programs over which the
Environmental Management Commission has regulatory authority: and
8) The cost to the State of the enforcement procedures.
0� ?.o
Dat Sheila C. Holman, Director
Division of Air Quality