AQ_F_1900015_20080909_ENF_SOC (3)

Special Order By Consent
ATC Panels, Inc., Moncure Facility
BEFORE THE NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
STATE OF NORTH CAROLINA }
COUNTY OF CHATHAM }
ATC PANELS, INC. ) SPECIAL ORDER BY CONSENT
MONCURE FACILITY }
MONCURE, CHATHAM COUNTY Z, 0 0 0 0
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
ATC Panels, Inc., —Moncure Facility (hereinafter referred to as ATC or the "COMPANY") and
the ENVIRONMENTAL MANAGEMENT COMMISSION, an agency of the State of North
Carolina(hereinafter referred to as the "COMMISSION").
WITNESSETH:
I. The COMPANY and the COMMISSION do hereby stipulate and agree to the following:
A. The COMPANY has operated and is now operating a Particleboard and Medium
Density Fiberboard (MDF) Manufacturing Facilty (hereinafter referred to as the
"Facility") in Moncure, Chatham County, North Carolina. The Facility operates
under Air Permit No. 03449T32 ("PERMIT"), which was issued on May 7, 2008
and expires on July 31, 2009.
B. The particleboard press and dryers ("PB Sources"), and the MDF Line, at the
Facility are "affected units" for MACT requirements under 40 CFR Part 63
Subpart DDDD ("Subpart DDDD" or MACT), and are also subject to
requirements under the State Toxic Air Pollutant (TAP) Program, 15A NCAC
2D .1100 and 2Q .0700.
C. On July 18, 2007, the COMPANY submitted, and subsequently received
approval, for a one-year extension to October 1, 2008 for the Subpart DDDD
compliance date pursuant to the provisions of 40 CFR 63.6(i)(3). The extension
was requested by the COMPANY based on the June 19, 2007, U.S. Court of
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Appeals for the District of Columbia Circuit decision that reversed portions of
Subpart DDDD including the extended compliance date of October 1, 2008,
which the Court reset to the original compliance deadline of October 1, 2007.
Those portions of the rules were vacated by issuance of the Court's mandate on
October 4, 2007.
D. As previously discussed with the Division of Air Quality (hereinafter referred to
as "DAQ") and included in the COMPANY'S recent air permit applications filed
with DAQ, ATC was preparing a demonstration for the Moncure site to
demonstrate compliance with Subpart DDDD under the "low-risk" subcategory of
those standards for the PB Sources, as well as the other emission sources at the
Facility. The court's action in eliminating that compliance option required ATC to
begin anew its planning for compliance with Subpart DDDD, starting from
issuance of the Court's mandate on October 4, 2007.
E. ATC has been working diligently to prepare for and assure compliance with
Subpart DDDD. To that end, ATC is investigating the use of two types of
non-combustion systems: a water-based system with chemical injection and cold
plasma technology for control of emissions from the particleboard dryers and
press. Use of either of these non-combustion control technologies would be
environmentally beneficial and preferable since the only other technically feasible
control technology for the dryers is an oxidizer combustion system, most
commonly a regenerative thermal oxidizer or RTO.
F. Installation and operation of an RTO would create additional nitrogen oxides
(NOx) emissions from the natural gas fired in the RTO. As the COMPANY'S
Facility is located in close proximity to the southern boundary of Wake County, in
which air quality monitors currently show exceedances of the new ozone standard
announced by EPA on March 12, 2008,1 additional NOx emissions would
potentially have an adverse impact on that county and the entire Triangle area
which is anticipated to be re-designated to nonattainment for ozone within the
1 The new ozone standard, set at 75 ppb, was published in the Federal Register on March 27,
2008 (73 Fed. Reg. 16435, et seq.).
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next two to three years. In addition, use of an RTO for the COMPANY'S
Moncure Facility has been determined to be economically prohibitive in the re-
evaluation of BACT requirements for the Facility, which was formalized in the
revised Air Permit No. 03449T31 issued by DAQ on July 12, 2007.
G. As a part of the re-evaluation of BACT requirements for the Facility, the
COMPANY submitted to DAQ modeling results that demonstrated that emissions
for the Facility fully satisfied the low-risk criteria for Subpart DDDD and the
applicable TAP requirements under 15A NCAC 2D .1100 and 2Q .0700, i.e., that
the risks posed were less than one in a million.
H. The COMPANY'S efforts to meet the compliance date of October 1, 2008,
encountered difficulties with testing and evaluating, ordering and scheduling of
control equipment, and other necessary steps, due in significant part to the large
number of facilities subject to Subpart DDDD working to achieve compliance
with those requirements in the very limited time since the issuance of the Court's
mandate on October, 4, 2007.
1. To comply with Subpart DDDD requirements in the most environmentally
beneficial manner and cost-effective manner, based on non-combustion
technology and processes, ATC requires sufficient time for a full set of testing
and evaluations of the process systems and equipment appropriate to comply with
Subpart DDDD requirements. Once the testing and evaluations are completed
and appropriate control systems selected, additional time may be necessary to
order and install materials and equipment, and test and evaluate their performance
in order to assure compliance with Subpart DDDD.
J. Consequently, ATC requests a further extension of time beyond the current
October 1, 2008, compliance date as specified below.
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:
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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. The COMPANY shall undertake and complete its evaluations of appropriate
control systems and process options, including, but not limited to, a water-based
system with chemical injection, cold plasma technology, and bio-filter systems
according to the schedule included in Appendix A. Progress reports shall be
submitted semi-annually, with the initial report to be submitted by October 1,
2008, to the DAQ Supervisor, Raleigh Regional Office. Subsequent semi-annual
reports will be submitted by the COMPANY on April 1 and October 1 of each
year for the duration of this ORDER.
B. In conjunction with the testing and evaluation of control systems and process
options, as described in the preceding paragraph, the COMPANY and DAQ will
consider and evaluate any and all regulatory options for compliance with the
requirements of Section 112 of the Clean Air Act through demonstration of the
low risks posed by emissions from the Facility, including, but not limited to,
DAQ's authority under subsections 112 (g) and 112 0), as well as the North
Carolina TAP program. Evaluation of such regulatory options will proceed along
with the testing and evaluation process specified in Appendix A and will not alter
that schedule, or tasks thereunder, unless or until a regulatory option is identified
under this paragraph that eliminates or reduces the need for control systems or
process changes in order to demonstrate compliance. In the event that such a
regulatory option is identified, the COMPANY may suspend the tasks otherwise
remaining under Appendix A, as approved by DAQ. In order to formalize any
such appropriate regulatory option, the COMPANY shall submit any necessary
Title V modification application to DAQ for compliance with applicable Section
112 requirements, as well as any necessary facility-wide risk assessment to assure
compliance with Subpart DDDD and the North Carolina TAP program.
C. DAQ will evaluate any permit modification request and determine whether or not
it meets the applicable regulatory requirements for the Facility. In making this
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determination, DAQ shall consider all applicable and appropriate regulatory
options under Clean Air Act Section 112. Within 60 days after a final decision on
the applicable Section 112 requirements, including any appeal or further actions
as provided by law, the COMPANY shall submit a compliance schedule for
installation of any processes or equipment necessary for compliance with those
applicable requirements.
D. In anticipation that the Facility will not comply with Subpart DDDD on October
1, 2008, the COMPANY shall pay a civil penalty of seven thousand five hundred
dollars ($7,500.00). This amount shall be paid in a lump sum payment due within
thirty (30) days of October 1, 2008. The payment shall be made by check payable
to the "North Carolina Department of Environment and Natural Resources" or to
"DENR" at the following address:
Enforcement Group—Payment
Technical Services Section
Division of Air Quality, DENR
1641 Mail Service Center
Raleigh,NC 27699-1641
E. This ORDER will remain in effect until the compliance requirements for the
Moncure Facility are fully in place, including any modifications to the PERMIT
necessary to effectuate the compliance requirements, but in no case later than
January 1, 2012. In the event that either a regulatory option is selected and
approved under Paragraph II.0 or a control systems and process option under
Appendix A that results in a compliance time earlier than January 1, 2012, this
ORDER shall terminate upon approval by DAQ of a compliance demonstration
for the Facility.
III. This ORDER shall pertain to the equipment, sources, and operations described in
Paragraph I of this ORDER. Any violation of Air Quality Standards resulting from other
sources or equipment for which the COMPANY is responsible, may subject the
COMPANY to appropriate enforcement action pursuant to North Carolina General
Statute 143-215.114.
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IV. In the event of changed circumstances, the COMPANY may request that the Director
modify the ORDER, as appropriate. If the Director finds that the COMPANY has
established good cause for its request, the DAQ and the COMPANY shall jointly
stipulate and agree to a written modification of this ORDER.
V. In the event the COMMISSION or the DAQ find that reports, plans, specifications, or
permit applications required under this ORDER 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.
VI. 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 VII, the
COMPANY will pay the COMMISSION according to the following schedule:
DEADLINES AND REPORTS STIPULATED PENALTIES
Failure to submit reports or otherwise $500 per day for the first five days and
meet any deadline as required by $1,000 per day thereafter.
Paragraph II.A and Appendix A.
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 into this ORDER, the COMPANY waives any and all
defenses and agrees that the sole issue in such an action will be whether thirty(30) days
has elapsed. The COMPANY shall pay all costs, including agency and attorney fees,
associated with the collection of a delinquent stipulated penalty.
VII. 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,
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as determined by the Division of Air Quality 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 noncompliance 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.
VIII. All notices and reports required from the COMPANY by this ORDER shall be mailed,
first class postage prepaid to:
Patrick Butler, Regional Air Quality Supervisor
Raleigh Regional Office
N.C. Dept. of Environment and Natural Resources
3800 Barrett Drive, Suite 101
Raleigh, North Carolina 27609
IX. 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. This ORDER shall not affect the
COMPANY'S obligation to comply with any Federal, State, or local laws or regulations.
X. 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.
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XI. 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.
XII. 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.
XIII. In the event of termination of operations and closure of the Facility, 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.
XIV. This Agreement shall be binding upon the parties, their successors and assigns, upon
execution by the undersigned, who represent and warrant that they are authorized to enter
into this agreement on behalf of the parties hereto. The parties acknowledge and agree
that this Special Order by Consent is transferable to successor entities of the COMPANY
(by purchase or otherwise) upon written modification of the Order agreed to by the
parties.
XV. This Special Order by Consent shall expire not later than January 1, 2012 or upon
completion of the requirements included in this ORDER, whichever occurs first.
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FOR ATC PANELS, INC. FOR THE ENVIRONMENTAL
MANAGEMENT COMMI N
By: By.
Ri rd illman, Plant Manager B. Keit vercash, DAQ Director
Date: Date:
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APPENDIX A
SCHEDULES FOR TESTING,EVALUATION AND INSTALLATION
OF CONTROL SYSTEMS AND EQUIPMENT
TASK COMPLETION DATE
EVALUATION AND TESTING OF WATER-BASED FEBRUARY 28,2009
SYSTEM WITH CHEMICAL INJECTION FOR DRYERS
EVALUATION AND TESTING OF WATER-BASED AUGUST 31, 2009
SYSTEM WITH CHEMICAL INJECTION FOR PRESS
DESIGN, PURCHASE & INSTALLATION AUGUST 31,2010
OF WATER-BASED SYSTEM & TREATMENT
SYSTEM FOR WASTEWATER
SHAKEDOWN & COMPLIANCE TESTING FEBRUARY 28,2011
IF WATER-BASED SYSTEM IS NOT FEASIBLE,
BEGIN EVALUATION OF COLD PLASMA
SYSTEM NOT LATER THAN AUGUST 31,2009:
TESTING & EVALUATION OF COLD NOVEMBER 30,2009
PLASMA TECHNOLOGY FOR PRESS
TESTING & EVALUATION OF COLD MAY 31,2010
PLASMA TECHNOLOGY FOR PLANT
DESIGN, PURCHASE & INSTALLATION MAY 31,2011
OF COLD PLASMA SYSTEM
SHAKEDOWN & COMPLIANCE TESTING NOVEMBER 30, 2011
IF NEITHER OF THE TWO NON-COMBUSTION SYSTEMS
ARE FEASIBLE, COMMENCE EVALUATION OF BIOFILTER
AND/OR RTO NOT LATER THAN MAY 31, 2010:
EVALUATION, DESIGN, PURCHASE & JULY 1,2011
INSTALLATION OF BIOFILTER& RTO
SHAKEDOWN & COMPLIANCE TESTING JANUARY 1,2012
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