Imation

Minutes of Meetings Held to Develop Final Project Agreement

July 19, 1996

Facsimile

Mr. Dan Reich Mr. Mike Barr
Mr. Gerardo Rios Pillsbury, Madison & Sutro
Ms. Sally Seymour
Ms. Frances Wicher Mr. Karl Krause
EPA Region 9 Ventura County APCD

Ms. Ann Brett
Mr. Bob Michels Mr. Mike Tollstrup
3M Camarillo CalEPA Air Resources Board

Ms. Sara Ethier Ms. Cynthia Cummis
Imation EH&SS U.S. EPA

Subject: 3M Camarillo Project XL Meeting Minutes
July 15, 1996 Meeting and July 18, 1996 Conference Call

Dear Ladies and Gentlemen:

Following are minutes from our XL meeting on Monday, July 15 at EPA Region 9, and the subsequent conference call on July 18.

HAPs and MACT

We had David Beck and Gail Lacey from the Office of Air Quality Planning and Standards on the phone, as they had some concerns regarding our agreement on how to handle HAP emissions. These were the decisions made:
_ The Covenant will include language indicating that the control system will reduce emissions of VOC, including total, nonparticulate HAP.
_ We will add language to the EMS to provide that the control system will be operated normally (i.e. up to normal operating standards) at all times when solvent is entering the system, although the 95% control is only required when a coater is running.
_ The Covenant/EMS will include the general requirement for particulate control laid out in the magnetic media MACT.
_ Imation will provide a detailed description of the facility to serve as technical support for the text and basis of the Covenant (discussed further later). This document will provide enough information to illustrate that adequate capture of the volatile emissions from the magnetic media operations is achieved.

Camarillo XL Team
7/19/96
Page 2

There was still some debate on Monday over how the Covenant will address 112g for new, non-magnetic tape major emitting sources of HAPs. We may need provisions to anticipate 112g requirements for this new equipment. But there currently are no requirements under 112g, so how can we address them in the Covenant? In addition, the foundation of the XL project is to provide flexibility under the emission caps that are agreed upon by the company and the agencies. On Thursday, we decided to include language in the Covenant indicating that, for new non-magnetic tape HAP major source emission units, Imation will perform a BACT analysis on HAP emissions as well as VOC (discussed next). In addition, Imation Camarillo will have a procedure in its EMS for notifying APCD in advance of intentions to install any non-magnetic tape major source of HAP emissions. This should address any requirements 112g might impose during the term of the Covenant.

Next steps: Mike B. to add appropriate language to the draft final Covenant.

NSR (BACT) & NSPS
We all agreed that the Covenant will have language indicating that Imation Camarillo's EMS will have procedures requiring that a BACT analysis be performed internally for all new equipment. This BACT review should include an applicable NSPS review, to determine if recordkeeping and/or reporting requirements in the EMS need updating. Also, the Covenant will indicate that new equipment may be run without control for a reasonable time period, as long as the process for obtaining the proper control equipment was started concurrently with the process for obtaining the new emitting equipment.

Regarding additional requirements under NSR and NSPS regulations for new or modified equipment, any changes that do not increase emissions form the facility above the caps set out in the Covenant should not trigger any NSR or NSPS requirements beyond what will be specifically agreed to in the Covenant. As indicated above, Imation believes this is the heart of Project XL.

Next steps: Mike B. will add appropriate language to the draft final Covenant/EMS Attachment to reflect the above agreements.

"Secondary" Pollutants
We reviewed the Imation proposal for allowing more flexibility in the area of secondary pollutant emissions. We agreed that we can increase the caps for CO, SOx and PM to the de minimis levels of 30, 15 and 15 TPY respectively, and that increases in all the caps would be allowed, but would be subject to the offset requirements in Ventura Air District Rule 26.2. However, we agreed that we cannot exempt pollution control equipment from these caps. We also discussed the possibility of VCAPCD adopting a rule to allow interpollutant trading between VOC and NOx. This could be considered for later inclusion in the Covenant as it appears that it will be at least a year before anything would be official.

Next steps: Mike B. will make the appropriate changes to the draft final Covenant.
Camarillo XL Team
7/19/96
Page 3

Title V
EPA Region 9 is working on a document that will lay out the activities required of all parties when the Covenant is up for reissuance (5 years). This will be added as a section in the Covenant.

Karl indicated he believes that the next draft covenant, along with supporting documentation (discussed later) will meet the requirement of a "timely and complete" Title V permit application.

Next Steps: Frances to complete and forward to Mike B by 7/25 for incorporation into the draft final Covenant.

Legal Mechanism
The Office of General Counsel for U.S. EPA joined us by phone with some questions about the legal mechanism for approval of an XL project agreement. The Covenant we have been drafting is our FPA, and would also be Imation Camarillo's applicable environmental requirements. To be recognized as such, the Covenant would go through these steps:

1. Signed by representatives from each negotiating party (estimated 9/15).
2. Approved by the Ventura Hearing Board as a site-specific rule. This process requires a public notice and a public hearing (estimated 10/15).
3. Approved by EPA through site-specific rule-making (estimated 12/31).

The last step will allow EPA to make it clear that this project utilizes site-specific interpretations of certain existing rules and regulations, but is not a departure from applicable statutes.

OGC seemed to prefer multiple, separate documents - an FPA (which would not be legally binding), a "permit," and maybe others. We all agreed that, in our relatively simple case, there will be one document that will be signed by representatives from all the appropriate parties, and then will go through the appropriate processes to be issued as a rule. Camarillo activities can be "allowed" in three different ways: 1) by letter from the agency to the company; 2) by permit issued by the agency; and 3) by approval from federal EPA. Authorization of some activities can occur earlier than others.

Both Ventura County and EPA Region 9 indicated that they need to know how this document will be submitted for approval. Imation agreed to make a detailed proposal.

Region 9 personnel indicated that they need to make sure all of the internal EPA stakeholders are informed and on board with this process.

Camarillo XL Team
7/19/96
Page 4

Next Steps: Mike B. will indicate in the draft final Covenant which activities are allowed at which times by which of the three mechanisms listed above. He along with Imation personnel will also prepare a detailed outline on how this Covenant will be presented for rule-making at the County and Federal level. Region 9 personnel will work with Imation to create a game plan to make sure all the appropriate internal EPA stakeholders are in the loop.

Supporting Documentation
We discussed the need for a technical document to provide descriptions and supporting information for the Covenant. This document will be used to 1) complete a Board package for county rule-making; 2) serve as a basis for the preamble to the federal rule-making notice; and 3) provide critical information to support Covenant text and agreements, allowing all parties to be comfortable enough to sign the Covenant.

Next Steps: Karl will send an example of a Board package to Bob. Mike B. and Imation personnel will prepare the supporting technical document for review by the first week in September.

Emission Reduction Credits
As earlier requested by EPA,. Ventura County and Imation now agree that the Covenant VOC cap will create 110 tons of ERCs. 30 tons will go back to the Ventura Air District Community Bank for minor sources. This leaves 80 tons available for community use. EPA Region 9 informed us that only 40 tons of this 80 can be used by a major source. This creates uncertainty and limits on the community for how they can use these credits, which the community was assured would not be the case.

This issue does not directly affect the language of the Covenant itself, and should not delay the drafting and finalization process. On Thursday, we agreed to each (i.e. Region 9 and Imation) create a document outlining how we think the ERC situation should be, send it to the other parties by August 12, and be prepared to discuss this again at our next meeting.

Next Steps: Imation and Region 9 personnel to create separate proposals for ERC potential use and send to each other by August 12.

Stakeholder Participation
Contact with the Environmental Coalition has been continuing. The coalition was scheduled to meet on July 2 to discuss the Covenant, and may have further questions. It seems that they are mostly concerned about how the resulting credits will be used. The EPA should be able to keep us abreast of changes in mood at the NGOs, and will keep records of the activities that have taken place to try to get the public involved in the Camarillo XL process.

Next Steps: Ann will continue to contact the Environmental Coalition. Bob will send Gerardo copies of notices that have been printed in the Camarillo area regarding XL.
Camarillo XL Team
7/19/96
Page 5

Other Agencies
Imation met with the Chief Deputy from DTSC regarding the RCRA issues in the Covenant on 7/12. There are three issues:
_ Imation Camarillo wants to crush or shred non-pumpable waste after its solvent content has been recovered, to reduce shipping costs.
_ Periodically Imation Camarillo performs an acid wash of heat exchange equipment, for descaling purposes. The facility wants to neutralize this waste solution before shipping, to reduce its potential hazard.
_ Imation Camarillo would like the option to send waste tapes containing precious metals to a reclaim facility, to recover the metals.

None of these activities are in conflict with any RCRA or California statutes, and DTSC may be able to approve these activities by signing the covenant. DTSC requested a ;more detailed explanation of the activities to increase their comfort level.

Next Steps: Bob M. will provide DTSC with a more detailed explanation of the proposed activities at the Camarillo plant. Gerardo will also take these issues up with Region 9 RCRA personnel to get their OK.

Auditing and EMS
An Imation auditing program is being established, and should be operational by fourth quarter 1996. This program will include some type of audit procedure for our plants' Environmental Management Systems. Camarillo's EMS is being constructed now, and is a long process which will involve input from the appropriate regulatory agencies.

Next Steps: Sara and I will prepare materials for discussion at our next meeting.

Timetable
So far, we have all agreed to the following dates:
_ July 25: get any info for inclusion into the Covenant to Mike Barr.
_ July 31: Mike Barr to complete the draft final Covenant and send to all parties.
_ Aug 19: next meeting date (in Camarillo).

Gerardo will construct a schedule for Region 9 activities between now and the next meeting, and I will do the same for Imation personnel. We will work together to merge them and also add on a schedule for activities associated with the implementation and approval process when the Covenant is signed.

We expect to have all of the issues with the Covenant language worked out before and during the August 19 meeting, so that the final signing ceremony can be scheduled for mid-September in Ventura.
Camarillo XL Team
7/19/96
Page 6

As mentioned above, the next meeting has been scheduled for Monday, August 19. 8:30am at Imation Camarillo.

Please contact me at (612) 778-6173 with any comments or changes to these minutes.

Sincerely,

Dawn J. Krueger
Advanced Environmental Engineer

Imation

Local Navigation