Vinyl Chloride Emission Reduction Strategies:

1. James C. Kenney, Environmental EngineerU.S. Environmental Protection Agency Middle Atlantic Regional Officekenney.james@epa.gov Vinyl Chloride Emission Reduction Strategies: How U.S. EPA Enforcers Working With Industry Achieved Results March 1, 2006 Atlanta, Georgia

2. Overview • Introduction • Brief Chronology • Research Methodology • Implementation • Developments • Conclusion

3. Introduction The Vinyl Chloride Project: • a multimedia targeting approach for improved human health and environmental benefits • a method totrace the impact of a chemical across all statutes • a single focus of reducing the total amount of a chemical, regardless of the environmental pathways

4. Introduction The Vinyl Chloride Pilot Project: • does not change existing laws, regulations or Agency decisions • does not create new regulatory authorities

5. Introduction The Vinyl Chloride Pilot Project: • Requirescompliance with existing permits and regulations • Seeksinjunctive relief, economic benefits and civil penalties (where appropriate) • Creativelyuses existing EPA policies to seek additional reductions

6. Brief Chronology • July 2001GAO determined EPA needed a strategic approach to deploying resources nationally • November 2001EPA Region III began researching the regulatory and environmental impact of pollutants crossing media boundaries

7. Brief Chronology • April 14, 2004 • EPA Headquarters selected the Vinyl Chloride Project as a National pilot for a workforce deployment pilot in response to GAO’s concerns • EPA Region III was asked by EPA Headquarters to lead the National pilot and develop a team consisting of Regions 2, 4, 5, 6 and the other EPA offices

8. Research Methodology Step 1: Environmental Indicator Development Legal Analysis and Chemical Literature Review Step 2: Environmental Data Step 2:Non-Environmental Data Step 4:Build Expertise; Target, Inspect and Case Development Step 3: Identify Industry and/or Processes

9. Research Methodology • Step 1: Identify environmental indicators • Example: National Air Toxics Assessment (NATA) data and Ozone Non-Attainment Status • Step 2: Holistically integrate environmental, non-environmental data and environmental justice indicators • Example: Public health data • All Cause Mortality Rates • Cancer Mortality Rates • Infant Mortality Rates • Infant Low Birth Rate • Pediatric Asthma Attacks • Steps 1 and 2 yielded six chemicals of concern

10. Research Methodology • Chemicals of concern: • Acetaldehyde • Propylene Dichloride • Ethylene Oxide • Dichloromethane • Trichloromethane • Vinyl Chloride All six chemicals are probable or known carcinogens; regulated under many Federal / State laws; and volatilize at standard atmospheric conditions.

11. Research Methodology

12. Research Methodology Vinyl Chloride Emissions Data (Source: TRI)

13. Research Methodology • Step 3: Identify industries / processes • Of all the vinyl chloride emitting industries, Chemicals and Allied Products emits 500 times more than the next largest vinyl chloride emitting industry • Step 4: Build technical and legal expertise • ‘Plastics Fundamentals’ class through Penn State University • RCRA Unraveled by McCoys and Associates • Develop multimedia regulatory & policy guidance compendium • Monitor “Plastics News” for PVC manufacturing and trends

14. Research Methodology • Research evidence focused on vinyl chloride fromPVC manufacturing facilities: • Known human carcinogen • Ozone precursor • NOx + VOC = Ozone • High ambient air concentrations according to NATA data • Volatilizes from liquid to gas at room temperature • Active trade, industry and environmental groups • Regulated under CAA, CWA, RCRA, EPCRA, and CERCLA

15. Research Methodology Vinyl Chloride (CAS: 75014)

16. Research Methodology * Compiled by U.S. EPA Region from publicly available data sources.

17. Implementation

18. ImplementationOccidental Chemical Corp. Pottstown, Pennsylvania • January/February 2003EPA and State representatives conduct a processed-based, multimedia investigation • October 1, 2003EPA files a multimedia administrative order and complaint • July 9, 2004EPA and Occidental settle the multimedia action for $1.1 million and a 26 ton reduction of vinyl chloride. Alleged counts included: CAA, CERCLA, CWA, EPCRA, RCRA and SPCC

19. ImplementationOccidental Chemical Corp.Pottstown, Pennsylvania • Strategy: • Vinyl chloride reductions paramount • Public Health / Environmental Benefits • 26 ton reduction of vinyl chloride • Settlement Summary • $1.1 million dollar settlement • Nominal injunctive relief • $900,000 in SEPs to reduce 26 tons of vinyl chloride, retire emission reduction credits and a water usage reduction • $150,000 in civil penalty

20. ImplementationFormosa Plastics Corp. Delaware City, Delaware • June 2003EPA and State representatives conduct a processed-based, multimedia investigation • September 2004U.S. Department of Justice, EPA and State meet with Formosa to establish prerequisites for negotiation, including a six month, closed-loop negotiation process • March 2005Consent decree signed by all parties. Counts included: CAA, CERCLA, CWA, EPCRA, RCRA and SPCC. • June 2005Consent decree lodged, opportunity for public comment begins • September 2005Consent decree entered by court

21. ImplementationFormosa Plastics Corp.Delaware City, Delaware • Strategy • Prerequisites for settlement: • Sixth month closed-loop negotiations • Vinyl chloride reductions beyond Federal & State permitted levels • Performance of SEP in addition to beyond compliance reductions • Unified DOJ, EPA and State legal, technical and management team • Public Health and Environmental Benefits • 18 ton reduction of vinyl chloride immediately • Incentive based 10 ton reduction of vinyl chloride within three years • Settlement Summary • $1.8 million dollar settlement • $450,000 in injunctive relief • $847,000 in SEPs and incentive projects to reduce vinyl chloride • $450,000 in civil penalty

22. Implementation • To date, EPA has assessed the multimedia compliance status of: • 83% of the facilities engaged in the manufacture of PVC in the U.S. • 95% of the U.S. manufacturing capacity • 90% of the corporations engaged in the manufacture of PVC in the U.S.

23. Developments • Common issues emerging in all media programs: • Leak Detection and Repair (CAA) • Sampling and Analysis (CAA, CWA, RCRA) • Surface Impoundments (CAA, CWA, RCRA)

24. Developments • EPA Regulatory Developments • Clean Water Act – Effluent Guidelines • Clean Air Act – MACT Remand • Federal and State Coordination • New VCM and PVC plants • Federal Government Coordination • Chemical Hazard and Safety Board • Industry and Trade Group Outreach • Environmental “Best Practices” of PVC Production

25. Developments • Beyond PVC and vinyl chloride: • Various Regions are using this targeting approach for other chemicals • Propylene dichloride • Methylene chloride • Styrene

26. Conclusion • A single focus of reducing the total amount of a chemical, regardless of the environmental pathway, has lead to the development novel settlement techniques for EPA and industry. • This approach combines the best concepts from innovative EPA programs (such as Project XL) with traditional enforcement concepts to obtain unprecedented environmental and public health benefits.