Return Date: No return date scheduled

Hearing Date: 2/4/2020 10:00 AM - 10:00 AM

Courtroom Number: 2302
Location: District 1 Court FILED
Cook County, IL 10/7/2019 3:36 PM
IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS DOROTHY BROWN
CIRCUIT CLERK
COUNTY DEPARTMENT, CHANCERY DIVISION
COOK COUNTY, IL
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

2019CH11577
HAWTHORNE L.L.C., )
an Illinois limited liability company, ) 6862368
) Case No. 2019CH11577
Plaintiff, )
)
v. )
)
CITY OF CHICAGO, a municipal )
corporation, and GENERAL IRON )
INDUSTRIES, INC., an Illinois )
corporation, GENERAL METALS, LLC, )
an Illinois Limited Liability Company, )
and RMG INVESTMENT GROUP, LLC, )
an Ohio Limited Liability Company )
)
Defendants. )

COMPLAINT

NOW COMES the Plaintiff, HAWTHORNE L.L.C., an Illinois limited liability

company, by and through its attorneys, BELLAS & WACHOWSKI, and for its Complaint

against GENERAL IRON INDUSTRIES, INC., an Illinois corporation, GENERAL METALS,

LLC, an Illinois Limited Liability Company, RMG INVESTMENT GROUP, LLC, an Ohio

Limited Liability Company, and the CITY OF CHICAGO, a municipal corporation, states as

follows:

PARTIES

1. HAWTHORNE L.L.C. (“Hawthorne”) is an Illinois limited liability company and

beneficial owner of the property commonly known as 1750 N. Kingsbury Street, Chicago,

Illinois.

2. Defendant GENERAL IRON INDUSTRIES, INC. (“GI”) is an Illinois corporation with

its principal place of business located at 1909 N. Clifton Avenue, Chicago, Illinois.

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 3. Defendant GENERAL METALS, LLC (“GM”) is an Illinois limited liability company

with its principal place of business located at 1909 N. Clifton Avenue, Chicago, Illinois.
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

4. Defendants GI and GM (collectively “General Iron”) operate a scrap metal business at

1909 N. Clifton Avenue, Chicago, IL. General Iron also owns a lot nearby at 1066 W. North

Avenue, Chicago, Illinois, which lot is also used by General Iron for certain aspects of the scrap

metal business, including a scale and staging of trucks and materials.

5. Defendant RMG Investment Group, LLC, (“RMG”) is an Ohio limited liability

corporation with its corporate headquarters located at 1831 E. Highland Road in Twinsburg,

Ohio.

6. Defendant RMG currently conducts metal and electronics recycling, stevedore, and

shipping operations at 11600 South Burley Avenue, Chicago, IL.

7. RMG intends to purchase General Iron’s metal recycling operations and substantially all

of the assets of General Iron in 2019.

8. Defendant CITY OF CHICAGO (the “City”) is an Illinois municipal corporation.

SUMMARY

9. This controversy centers on the public and private nuisance created by General Iron,

including creation of smoke, fumes, dust, vibration, and noise produced by General Iron on its

own land and impairing the use and enjoyment of neighboring land by Plaintiff in addition to

General Iron’s use of and access to Kingsbury Street, by the public and the property owners

along Kingsbury Street, including Hawthorne L.L.C., from North Avenue north to Cortland

Street in Chicago, Illinois.

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 BACKGROUND

10. General Iron serves a metal recycling center and operates along Kingsbury Street with
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

complete impunity as to the impact its business practices have on local commerce or the

community. Scrap metal dealers, junk collectors, and other members of the public form a long

line beginning at 1066 W. North Avenue and extend down the street to have material weighed.

From there, they proceed to form another long line to drop off the scrap metal on Kingsbury

Street, where the metal is stacked by General Iron employees in different areas on General Iron’s

properties and then cut into smaller pieces by General Iron for recycling purposes.

11. When dropping off scrap metal, customers of General Iron form long lines and park their

vehicles on the surrounding streets thereby disrupting and interfering with the flow of traffic

along Kingsbury Street, North Avenue, and even the neighboring expressways.

12. At all relevant times, General Iron has continued to use and obstruct Kingsbury Street as

described above for its own benefit and enjoyment.

GENERAL IRON CREATES NOISE, AIR, AND DEBRIS POLLUTION

13. In a letter sent to Dr. Julie Morita dated August 21, 2017, Alderman Brian Hopkins

requested that the city conduct tests as he complained of “[e]xcessive smoke and dust, along with

tremors and vibrations from explosions” produced by General Iron, intruding and impinging on

neighboring property enjoyment.

14. At all times relevant, General Iron has continued to produce excessive smoke, dust,

“fluff,” tremors, and explosions that intrude upon public and private land, impinging enjoyment

by Plaintiff and the public.

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 15. In 2006, the Environmental Protection Agency stepped in, fining General Iron $250,000

in addition to forcing General Iron to fund $750,000 in environmental projects and make over
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

one million dollars in upgrades.

16. These upgrades did not have a noticeable impact on Plaintiff’s and other neighbors’

perceptions of noise, congestion, disturbance, and pollution.

17. In July of 2015, General Iron’s negligent operations led to an explosion at the facility.

18. In December of 2015, General Iron’s negligent operations led to a fire that spewed

harmful chemicals, created a Level 1 hazmat situation, reportedly caused loud explosions, and

emitted toxic smoke creating a foul-smelling haze downwind on Clybourn Street and throughout

the greater Lincoln Park area.

19. Many of the thousands of gallons of water to douse the seventy-foot-high piles of

combustible materials drained directly into the North Branch of the Chicago River, carrying

unknown types and quantities of contaminates.

20. Although the facility was briefly closed due to code violations following this fire, there

was no noticeable difference in Plaintiff’s or neighbor’s perceptions of noise, congestion,

disturbance, and pollution upon the facilities re-opening.

21. Excessive smoke and dust continuously emanate from General Iron’s facilities.

22. In April of 2016, General Iron was issued an “emergency vacate” notice by the City of

Chicago and forced to shut down following a failed building inspection.

23. Just months after re-opening following their failed inspection and emergency vacate

notice, General Iron was awarded permits, consisting of special waivers, that allow it to operate

its metal shredders from the extended hours of 5 a.m. until 10 p.m.

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 24. Neighboring residents and businesses, including Plaintiff, are routinely forced to clean up

after General Iron, including removing scraps and shrapnel left on the ground on their property
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

and adjoining public property in addition to cleaning airlifters, grime, and “dust” that

accumulates in the air and on exposed surfaces.

25. In 2016, independent entities, including a researcher associated with the University of

Illinois at Chicago, began ongoing air quality monitoring that detected high levels of airborne

toxins and fugitive dust, including lung damaging particulate matter, in the neighboring areas

and downwind from General Iron’s facility. These results have been sent to the City but no

action was taken.

26. General Iron has been accused in other court filings by one of its partial owners of

falsifying its records regarding hazardous waste.

27. Specifically, a partial owner of General Iron alleged that General Iron diluted its

nonrecyclable content known as “shredder fluff” with soil in order to pass hazardous material

tests and falsely reported the “fluff” as nonhazardous waste in order to pay lower disposal fees.

28. Because General Iron used a partner largely unknown to Clybourn Corridor and Lincoln

Park area residents to seek renewal and did so several months ahead of planned expiration in

2019, the permits were renewed largely without the knowledge of or input from area residents

who were directly impacted by the loud heavy machinery operating next door for long hours and

spreading particulate matter throughout their property.

THE EPA’S FINDINGS CONTRADICT THE CITY’S CLAIMS

OF ENVIRONMENTAL COMPLIANCE

29. In 2017, at the same time Dr. Morita was responding on behalf of the City to complaints

regarding General Iron by stating that General Iron’s emissions were within acceptable limits,

the EPA cited General Iron for failure to meet air quality standards.

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 30. In November of 2017, the EPA requested that General Iron test emissions of volatile

organic compounds (VOCs), metal hazardous air pollutants (HAPs), and particulate matter (PM).
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

31. The results of the emissions tests caused the EPA to issue a Notice of Violation and

Finding of Violation (“NOV/FOV”) under Sections 113(a)(1) and 113(a)(3) of the Clean Air Act

(“CAA”), 42 U.S.C. §§ 7413(a)(1) and 7413(a)(2) on July 18, 2018. (Attached as Exhibit A).

32. This FOV/NOV was followed by an Administrative Consent Order (“ACO”) entered into

by General Iron and the EPA on August 22, 2019. (Attached as Exhibit B).

33. The EPA NOV/FOV found that General Iron was violating Section 114(a)(1) of the

CAA, 42 U.S.C. §7414, Title V of the CAA, 42 U.S.C. §§ 7661a-7661f, and the Illinois State

Implementation Plan (“SIP”) in addition to Section 503 of the CAAA, the regulations found at

40 C.F.R. §§ 70.5(a) and 70.7(b), and the Illinois Environmental Protection Act at 415 ILCS §

5/39.5(4)(c).

34. During the EPA’s inspections of General Iron, its representatives “observed fugitive

particulate matter emitted from [General Iron’s] hammermill shredder crossing the property

line.”

35. General Iron was emitting chemicals visible by an observer looking generally toward the

zenith at a point beyond the property line of the emission source in violation of 35 IAC §

212.301.

36. The EPA stated that based on General Iron’s Volatile Organic Matter (“VOM”)

emissions, General Iron must, according to both Illinois and federal law, operate emission

capture and control equipment that achieves an overall reduction in uncontrolled VOM emissions

of at least eighty-one percent (81%).

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 37. The EPA also found that General Iron had violated the Section 502 of the CAA, the

regulations at 40 C.F.R §§ 70.1(b) and 70.7(b), and the Illinois Environmental Protection Act at
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

415 ILCS § 5/39.5(6)(b) when General Iron failed to apply for and obtain the correct operating

permit.

38. In determining the impact of General Iron’s violations, the EPA found that General Iron’s

violations had caused excess emissions of VOMs and PM.

39. Some potential health consequences of General Iron’s violations, as identified by the

EPA in their FOV/NOV, include birth defects, cancer, chest pain, coughing, difficulty breathing,

throat irritation, congestion, bronchitis, emphysema, asthma, reduced lung function, inflamed

lung tissue, permanently scarred lung tissue, irregular heartbeat, heart attacks, and premature

death in individuals with lung or heart disease.

40. As of the August 22, 2019 AOC, General Iron still had not complied with the VOM

federal and state control requirements.

41. According to the EPA’s website, “General Iron must ensure through testing that VOC

emissions from its shredder are reduced by at least 98% from current levels.”

42. Even if General Iron manages to demonstrate the required reduction in VOCs, these tests

will be conducted by General Iron who has been accused by their own co-owner of intentionally

manipulating test results.

43. On February 25, 2019, over seven months after the EPA issued its FOV/NOV to General

Iron, the City of Chicago awarded General Iron a permit allowing for extended hours of

operation from 5 a.m. to 10 p.m. despite all of the EPAs findings regarding state and federal

noncompliance, the spread of PMs and VOCs on neighboring public, residential, and commercial

properties, and the health risks generated by General Iron’s activities.

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 GENERAL IRON CAUSES TRAFFIC AND SAFETY HAZARDS

44. Large trucks frequently line up waiting to enter General Iron’s facility, causing traffic
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

congestion and blocking the entrance to North Avenue.

45. These trucks have also caused multiple traffic accidents over the years, especially when

turning left.

46. Officials with the Chicago Department of Transportation confirmed that the trucks,

particularly left turning trucks, caused a danger to the area and ordered a sign prohibiting left

turns be installed.

47. That sign has since disappeared without explanation and the hazard created by the trucks

remains.

48. On multiple occasions, at least four times in 2016 alone, overloaded trucks headed to the

scrapyard have become stuck in the underpass on North Avenue, impeding traffic on not only

North Avenue, Clifton Street, Kingsbury Street, and Armitage Avenue and even the Kennedy

Expressway for many hours at a time.

49. Every day, dozens of trucks line up on Kingsbury Street with idling diesel engines

running, blocking the public roads and interfering with the public’s use of Kingsbury Street in

addition to adjoining streets and property.

50. General Iron directs the scrap-laden diesel trucks to a yard on the south side of General

Iron’s property by North Avenue.

51. When trucks exit the property, they line up again on Kingsbury Street to wait to enter

Clifton Avenue.

52. At any given time, fifteen to twenty trucks will be lined up on neighboring streets,

blocking traffic that potentially includes emergency vehicles from passing through.

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 53. The traffic and safety problems caused by General Iron’s failure to operate safely impede

and discourage others from traveling to the neighborhood.

FILED DATE: 10/7/2019 3:36 PM 2019CH11577

PLAINTIFF SEEKS RELIEF

54. On December 17, 2018, Plaintiff Hawthorne sent a letter to then Mayor Rahm Emanuel

detailing the above issues with General Iron along with Plaintiff’s repeated efforts to clean up

and maintain its property despite these issues.

55. In February of 2019, General Iron used its new partner, RMG, and a new entity called

GII to renew their special waiver extending operation hour permits until 2022.

56. On May 22, 2019, Plaintiff’s 2018 letter to then Mayor Emanuel was sent to current

Mayor Lori Lightfoot along with a new letter written by a neighboring property with common

ownership interest detailing Plaintiff’s grievances. (Attached as Exhibit C).

57. Plaintiff has not received a response regarding any of its concerns.

58. On September 10, 2019, without consulting Plaintiff or any other neighboring properties

impacted by General Iron, the City entered into an agreement (“Interim Operating Plan”) with

General Iron and RMG. (Attached as Exhibit D).

59. Rather than directly addressing the neighbors’ and the Plaintiff’s immediate concerns, the

Interim Operating Plan slightly reduced General Iron’s permissible operating hours from 17

hours per day to 14 hours per day, requiring only one “person to control traffic” for just 5 of

those 14 operating hours.

60. No additional testing regarding compliance or emissions was included as part of the

Interim Operating Plan.

61. Trucks continue to obstruct traffic on all adjacent streets at all hours of the day and into

the night.

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 62. Putrid particulate matter and “fluff” continue to fall on neighboring properties during all

hours of the day and into the night.

FILED DATE: 10/7/2019 3:36 PM 2019CH11577

63. The Interim Operating Agreement states that the City will “enforce its ordinances, rules,

regulations, licenses, permits, and policies as necessary to protect the public health and safety

and welfare, applying such enforcement neutrally and consistently to General Iron.” The City is

not complying with this provision.

PLAINTIFF HAS BEEN HARMED

64. Plaintiff has been permanently and irreparably harmed in its business because:

i. the City continues to allow the unfettered use and obstruction of Kingsbury Street

by General Iron,

ii. General Iron has repeatedly failed to contain the particulate matter produced by its

operations,

iii. General Iron operates 24 hours per day for drop off of scrap metal and with

extended hours for processing of scrap metal, prohibiting peaceful enjoyment of the

neighborhood

iv. trucks headed to General Iron repeatedly pose a safety hazard and cause traffic

jams,

v. General Iron emits particulate matter that Plaintiff’s lessees and employees are

exposed to and inhale on a daily basis,

vi. General Iron’s operations, including excessive and improperly contained noise

and pollution, diminish Plaintiff’s property value, and

vii. General Iron’s operations, including excessive and improperly contained noise,

and pollution, diminish the public’s peaceful enjoyment of the neighborhood.

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 COUNT I
PUBLIC NUISANCE AGAINST GENERAL IRON AND RMG – INJUNCTION AND
DAMAGES
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

65. Plaintiff repeats and realleges paragraphs 1 through 64 above as though fully set forth

herein.

66. The actions of General Iron create a public nuisance in that:

i. Kingsbury Street has been usurped by General Iron, a private entity, for its exclusive use

and enjoyment.

ii. The area surrounding General Iron, including the storefronts and parking lots owned by

Plaintiff, have been damaged by General Iron’s negligent operations that produce excess

smoke, dust, odors, and particulate matter that impinge on Plaintiff’s and other

neighbor’s quiet enjoyment of their property.

iii. General Iron has repeatedly obstructed and impeded traffic on surrounding streets,

including North Avenue, Armitage Avenue, and the Kennedy Expressway.

iv. General Iron has interfered with the use of neighboring public and private property in that

vehicles of Plaintiff’s business have been denied access to their businesses by the traffic

hazards caused and created by vehicles entering Plaintiff’s facility, including those

making left turns from North Avenue and those that are too overloaded to fit under the

underpass.

v. General Iron has allowed debris from its business, including metal scraps, “fluff,” dust,

and particulate matter to accumulate along adjoining public and private property.

67. Plaintiff seeks to abate a public nuisance as private citizens and adjacent property owners

who have been denied full use of public access ways and private property.

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 68. Since access to local businesses has been impeded by General Iron, Plaintiff has suffered

injuries to its business in addition to the injuries suffered by the general public, affording
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

Plaintiff the right and standing to enforce the public trust in the unfettered use and enjoyment of

public access ways surrounding General Iron.

69. Plaintiff has suffered economic losses and damages in an amount not yet determined but

believed to be in excess of $100,000, arising out of General Iron’s obstruction of public

thoroughfares and interference with their use and enjoyment of their properties, including their

business operations.

WHEREFORE, Plaintiffs pray for the following relief:

1. The entry of a preliminary and permanent injunction against Defendant General Iron

restraining and enjoining General Iron as follows:

1. Prohibit General Iron from emanating dust, smoke, debris, and fluff anywhere

outside of its property;

2. Prohibit General Iron from disposing of scrap metal or other materials anywhere

outside of its property;

3. Order General Iron to monitor and schedule deliveries to its facility such that

trucks are not overloaded, left hand turns are not made from North Avenue,

Kingsbury Street is not blocked, and traffic is not backed up and obstructed for

Plaintiff, customers to Plaintiff’s businesses, and those in the general public

seeking to use adjacent public thoroughfares;

4. Order General Iron to cease and desist from all operations that will create

excessive noise or explosions or emanate dust, smoke, debris, strong odors, and/or

12
 “fluff” anywhere outside of its property, dispose of scrap metal outside of its

property, or obstruct the flow of traffic on public thoroughfares in the future;

FILED DATE: 10/7/2019 3:36 PM 2019CH11577

2. Order the revocation of the extended hours permits issued to General Iron;

3. An award for damages in favor of Plaintiff and against Defendant General Iron in an

amount in excess of $100,000 plus costs of suit; and

4. Such other and further relief as equity may require.

COUNT II
PRIVATE NUISANCE AGAINST GENERAL IRON AND RMG

70. Plaintiff repeats and realleges paragraphs 1 through 69 above as though fully set forth

herein.

71. The actions of General Iron create a private nuisance in that:

1. General Iron has substantially invaded Plaintiff’s interest in the use and

enjoyment of its land.

2. The small businesses and parking lots located on land owned by Plaintiff have

been damaged by General Iron’s negligent operations that produce excess smoke,

dust, odors, and particulate matter in addition to unreasonable traffic hazards and

congestion that impinge on Plaintiff’s quiet enjoyment of its property.

3. General Iron has allowed debris from its business, including metal scraps, “fluff,”

dust, and particulate matter to accumulate along Plaintiff’s property, thereby making

it difficult and unsafe for Plaintiff to conduct business and otherwise engage in quiet

enjoyment of its property.

72. Plaintiff has been denied full use of public access ways and private property.

73. General Iron has interfered with Plaintiff’s use of their property in that vehicles seeking

to supply and patronize businesses located on Plaintiff’s property have been denied or delayed

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 access as a direct result of the traffic hazards caused and created by vehicles entering Plaintiff’s

facility, including those making left turns from North Avenue, those blocking Kingsbury Street,
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

and those that are too overloaded to fit under the underpass.

74. Plaintiff has suffered economic losses and damages in an amount not yet determined but

believed to be in excess of $100,000, arising out of General Iron’s obstruction of public

thoroughfares and interference with their use and enjoyment of their properties, including their

business operations.

WHEREFORE, Plaintiffs pray for the following relief:

1. The entry of a preliminary and permanent injunction against Defendant General Iron

restraining and enjoining General Iron as follows:

1. Prohibit General Iron from emanating dust, smoke, debris, and fluff onto

Plaintiff’s property;

2. Prohibit General Iron from disposing of scrap metal or other materials onto

Plaintiff’s property;

3. Order General Iron to monitor and schedule deliveries to its facility such that

trucks are not overloaded, left hand turns are not made from North Avenue,

Kingsbury Street is not blocked, and traffic is not backed up and obstructed for

Plaintiff, Plaintiff’s lessees, and customers to Plaintiff’s businesses.

4. Order General Iron to cease and desist from all operations that will create

excessive noise or explosions or emanate dust, smoke, debris, strong odors, and/or

“fluff” anywhere outside of its property, dispose of scrap metal outside of its

property, or obstruct the flow of traffic on public thoroughfares in the future;

2. Order the revocation of the extended hours permits issued to General Iron;

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 3. An award for damages in favor of Plaintiff and against Defendant General Iron in an

amount in excess of $100,000 plus costs of suit; and

FILED DATE: 10/7/2019 3:36 PM 2019CH11577

Such other and further relief as equity may require.

COUNT III
PROSPECTIVE NUISANCE AGAINST GENERAL IRON AND RMG

75. Plaintiff repeats and realleges paragraphs 1 through 74 above as though fully set forth

herein.

76. The actions of General Iron create a prospective nuisance in that:

1. Kingsbury Street has been usurped by General Iron, a private entity, for its

exclusive use and enjoyment.

2. The area surrounding General Iron, including the storefronts and parking lots

owned by Plaintiff, will continue to incur damage from General Iron’s negligent

operations that produce excess smoke, dust, odors, and particulate matter that impinge

on Plaintiff’s and other neighbor’s quiet enjoyment of their property.

3. General Iron will continue to obstruct and impede traffic on surrounding streets,

including North Avenue, Armitage Avenue, and the Kennedy Expressway.

4. General Iron will continue to interfere with the use of neighboring public and

private property in that vehicles of Plaintiff’s business will continue to be denied

access to their businesses by the traffic hazards caused and created by vehicles

entering Plaintiff’s facility, including those making left turns from North Avenue and

those that are too overloaded to fit under the underpass.

5. General Iron will continue to allow debris from its business, including metal

scraps, “fluff,” dust, and particulate matter to accumulate along adjoining public and

private property.

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 77. Plaintiff seeks to abate a prospective nuisance as an adjacent property owner who will

continue to be denied full use of public access ways and private property.
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

78. Since access to local businesses will continue to be impeded by General Iron, Plaintiff

will continue to suffer injuries to its business in addition to the injuries suffered by the general

public, affording Plaintiff the right and standing to enforce the public trust in the unfettered use

and enjoyment of public access ways surrounding General Iron.

WHEREFORE, Plaintiffs pray for the following relief:

1. The entry of a preliminary and permanent injunction against Defendant General Iron

restraining and enjoining General Iron as follows:

1. Prohibit General Iron from emanating dust, smoke, debris, and fluff anywhere

outside of its property;

2. Prohibit General Iron from disposing of scrap metal or other materials anywhere

outside of its property;

3. Order General Iron to monitor and schedule deliveries to its facility such that

trucks are not overloaded, left hand turns are not made from North Avenue, and

traffic is not backed up and obstructed for Plaintiff, customers to Plaintiff’s

businesses, and those in the general public seeking to use adjacent public

thoroughfares;

4. Order General Iron to cease and desist from all operations that will create

excessive noise or explosions or emanate dust, smoke, debris, strong odors, and/or

“fluff” anywhere outside of its property, dispose of scrap metal outside of its

property, or obstruct the flow of traffic on public thoroughfares in the future;

2. Order the revocation of the extended hours permits issued to General Iron;

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 3. Such other and further relief as equity may require.

COUNT IV
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

TRESPASS AGAINST GENERAL IRON AND RMG

79. Plaintiff repeats and realleges paragraphs 1 through 78 above as though fully set forth

herein.

80. The actions of General Iron constitute trespass in that:

1. General Iron has substantially physically invaded Plaintiff’s land and Plaintiff’s

interest in the use and enjoyment of its land.

2. The small businesses and parking lots located on land owned by Plaintiff have

been damaged by General Iron’s negligent operations that produce excess smoke,

dust, odors, and particulate matter in addition to unreasonable traffic hazards and

congestion that impinge on Plaintiff’s quiet enjoyment of its property.

3. General Iron has allowed debris from its business, including metal scraps, “fluff,”

dust, and particulate matter to accumulate along Plaintiff’s property, thereby making

it difficult and unsafe for Plaintiff to conduct business and otherwise engage in quiet

enjoyment of its property.

81. Plaintiff has been denied full use of both public access ways and private property.

82. Plaintiff has notified the City repeatedly of General Iron’s intrusion.

83. General Iron has not altered its conduct in any manner in response to Plaintiff’s

complaints or made any attempts to keep scraps, debris, dust, fumes, or particulate matter off

Plaintiff’s property or to reduce noise from its constant operations.

84. General Iron’s actions constituting trespass are wanton, malicious, and oppressive.

WHEREFORE, Plaintiffs pray for the following relief:

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 1. The entry of a preliminary and permanent injunction against Defendant General Iron

restraining and enjoining General Iron as follows:

FILED DATE: 10/7/2019 3:36 PM 2019CH11577

1. Prohibit General Iron from emanating dust, smoke, debris, and fluff onto

Plaintiff’s property;

2. Prohibit General Iron from disposing of scrap metal or other materials onto

Plaintiff’s property;

3. Order General Iron to monitor and schedule deliveries to its facility such that

trucks are not overloaded, left hand turns are not made from North Avenue, and

traffic is not backed up and obstructed for Plaintiff, Plaintiff’s lessees, and customers

to Plaintiff’s businesses.

4. Order General Iron to cease and desist from all operations that will create

excessive noise or explosions or emanate dust, smoke, debris, strong odors, and/or

“fluff” anywhere outside of its property, dispose of scrap metal outside of its

property, or obstruct the flow of traffic on public thoroughfares in the future;

2. Order the revocation of the extended hours permits issued to General Iron;

3. An award for damages in favor of Plaintiff and against Defendant General Iron in an

amount in excess of $100,000 plus costs of suit;

4. An award of punitive damages; and

5. Such other and further relief as equity may require.

COUNT V
NEGLIGENCE AGAINST GENERAL IRON AND RMG

85. Plaintiff repeats and realleges paragraphs 1 through 84 above as though fully set forth

herein.

86. The actions of General Iron constitute negligence in that:

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 1. The area surrounding General Iron, including the storefronts and parking lots

owned by Plaintiff, have been damaged by General Iron’s negligent operations that
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

produce excess smoke, dust, odors, and particulate matter that impinge on Plaintiff’s

and other neighbor’s quiet enjoyment of their property.

2. General Iron’s operations repeatedly obstructed and impeded traffic on

surrounding streets, including North Avenue, Armitage Avenue, and the Kennedy

Expressway without due regard for the property, rights, or safety of others.

3. General Iron has interfered with the use of neighboring public and private

property without due regard for the property, rights, or safety of others in that

vehicles of Plaintiff’s business have been denied access to their businesses by the

traffic hazards caused and created by vehicles entering Plaintiff’s facility, including

those making left turns from North Avenue and those that are too overloaded to fit

under the underpass.

4. General Iron has allowed debris from its business, including metal scraps, “fluff,”

dust, and particulate matter to accumulate along adjoining public and private

property.

87. Plaintiff seeks to abate a public nuisance as private citizens and adjacent property owners

who have been denied full use of public access ways and private property.

88. General Iron has received repeated notice of all of the above intrusions and offenses.

89. General Iron has not taken reasonable care to prevent any of the above intrusions or

offenses.

90. General Iron’s actions and omissions are directly responsible for all of the above

intrusions and omissions.

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 91. Since access to local businesses has been impeded by General Iron, Plaintiff has suffered

injuries to its business in addition to the injuries suffered by the general public, affording
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

Plaintiff the right and standing to enforce the public trust in the unfettered use and enjoyment of

public access ways surrounding General Iron.

92. Plaintiff has suffered economic losses and damages in an amount not yet determined but

believed to be in excess of $100,000, arising out of General Iron’s obstruction of public

thoroughfares and interference with their use and enjoyment of their properties, including their

business operations.

WHEREFORE, Plaintiffs pray for the following relief:

1. The entry of a preliminary and permanent injunction against Defendant General Iron

restraining and enjoining General Iron as follows:

1. Prohibit General Iron from emanating dust, smoke, debris, and fluff anywhere outside of

its property;

2. Prohibit General Iron from disposing of scrap metal or other materials anywhere outside

of its property;

3. Order General Iron to monitor and schedule deliveries to its facility such that trucks are

not overloaded, left hand turns are not made from North Avenue, and traffic is not backed up and

obstructed for Plaintiff, customers to Plaintiff’s businesses, and those in the general public

seeking to use adjacent public thoroughfares;

4. Order General Iron to cease and desist from all operations that will create excessive noise

or explosions or emanate dust, smoke, debris, strong odors, and/or “fluff” anywhere outside of its

property, dispose of scrap metal outside of its property, or obstruct the flow of traffic on public

thoroughfares in the future;

20
 2. Order the revocation of the extended hours permits issued to General Iron;

3. An award for damages in favor of Plaintiff and against Defendant General Iron in an
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

amount in excess of $100,000 plus costs of suit; and

4. Such other and further relief as equity may require.

COUNT VI
MANDAMUS – BREACH OF PUBLIC TRUST AGAINST CITY OF CHICAGO

93. Plaintiff repeats and realleges paragraphs 1 through 92, above, as and for paragraphs 1

through 116 of Count VI, as though fully set forth herein.

94. The City has a duty to enforce pollution laws and not grant operational permits to

companies that violate federal and state regulations.

95. The City further has a duty to keep public streets and thoroughfares unobstructed and in a

reasonably safe condition.

96. Defendant General Iron has exceeded allowable emission limits and allowed VOCs,

VOMs, and PMs to endanger the public health and contaminate neighboring commercial,

residential, and public property.

97. Defendant General Iron has further impeded traffic and created safety hazards around its

facility.

98. The City has breached its duty to the public by not only granting operating permits but by

granting extended hours operating permits to a facility currently violating state and federal

pollution laws, as fully admitted by General Iron when they signed the AOC.

99. The City has also breached its duty by failing and refusing to fully and properly enforce

the traffic laws of the City around the General Iron facility.

21
 100. Plaintiffs have suffered special damages in that they have been denied unfettered access

to their property, have been denied the full use and enjoyment of their property including their
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

businesses.

101. Illinois law permits the filing for and issuance of a Writ of Mandamus directing the City

to take immediate steps to enforce public health, safety, environmental, and traffic laws. (735

ILCS § 5/14-101, et. seq.)

WHEREFORE, Plaintiffs pray for the entry of an Order directed to the Defendant City of

Chicago as follows:

1. A Writ of Mandamus directing the City of Chicago to enforce those traffic,

environmental, health, and safety laws and ordinances necessary to prevent General Iron from

contaminating the air and property surrounding its facility with PMs, VOCs, HOCs, and VOMs

and to maintain the proper flow of traffic around General Iron property;

2. Directing the City of Chicago to take immediate steps to abate the nuisances complained

of;

3. Directing the City of Chicago to rescind General Iron’s operating permits; and

4. For other such relief as equity may require.

Respectfully submitted,

HAWTHORNE, L.L.C., an Illinois

limited liability company, Plaintiff

By: /s/George S. Bellas__________________

GEORGE S. BELLAS
One of Plaintiff’s Attorneys

George S. Bellas (george@bellas-wachowski.com)

Jillian Tattersall (jillian@bellas-wachowski.com)
Misty J. Cygan (misty@bellas-wachowski.com)
BELLAS & WACHOWSKI
Attorneys for Plaintiffs
22
 15 N. Northwest Highway
Park Ridge, IL 60068
(847) 823-9032
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

Cook County Firm No. 22565

23
 Return Date: No return date scheduled
Hearing Date: 2/4/2020 10:00 AM - 10:00 AM
Courtroom Number: 2302
Location: District 1 Court FILED
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 10/7/2019 3:36 PM
Cook County, IL REGION 5 DOROTHY BROWN
77 WEST JACKSON BOULEVARD CIRCUIT CLERK
CHICAGO, IL 60604-3590 COOK COUNTY, IL
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

2019CH11577
JUL 1 8 2018
6862368
CERTIFIED MAIL REPLY TO TH E ATTENTION OF:

RETURN RECEIPT REQUESTED

Mr. Adam Labkon

General Iron Industries, Inc.
1909 N. Clifton Ave.
Chicago, Illinois 60614

Re: Notice and Finding of Violation

General Iron Industries, Inc.
Chicago, Illinois

Dear Mr. Labkon:

The U.S. Environmental Protection Agency (EPA) is issuing the enclosed Notice and Finding of
Violation (NOV/FOY) to General Iron Industries, Inc. (you) under Sections 113(a)(l) and
l 13(a)(3) of the Clean Air Act (CAA), 42 U.S.C. §§ 7413(a)(l) and 7413(a)(3). We find that
you are violating and have violated the Illinois State Implementation Plan, Title V of the CAA,
42 U.S.C. §§ 766la-766lf, and Section 114 of the CAA, 42 U.S.C. § 7414, at your facility in
Chicago, Illinois.

Section 113 of the CAA gives the EPA several enforcement options. These options include
issuing an administrative compliance order, issuing an administrative penalty order and bringing
a judicial civil or criminal action.

While we have been in discussions with you for some time regarding conditions at your facility,
the emissions tests you have performed, and possible options for pollution controls, this letter
provides formal notice of the violations, and offers you an opportunity to confer with us about
those violations as alleged in the NOV/FOY. The conference will give you an opportunity to
present information on the specific findings of violation, any efforts you have taken to comply
and the steps you will take to prevent future violations. In addition, in order to make the
conference more productive, we encourage you to submit to us information responsive to the
NOV/FOY prior to the conference date.

Please plan for your facility's technical and management personnel to attend the conference to
discuss compliance measures and commitments. You may have an attorney represent you at this
conference.

Recycled/Recyclable • Printed w ith Vegetable Oil Based Inks on 100% Recycled Paper (1 00% Post-Consumer)

EXHIBIT A
 The EPA contact in this matter is Mr. Scott Connolly. You may call or email him at (312) 886-
1493 or connolly.scott(@epa.gov to request a conference. You may also have your attorney
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

contact Erik Olson at (312) 886-6829 or olson.erik(@epa.gov. You should make the request
within 10 calendar days following receipt of this letter. We should hold any conference within
30 calendar days following receipt of this letter.

Sincerely,

Edward Nam
Director
Air and Radiation Division

Enclosure

cc: Julie Armitage, Chief, Bureau of Air

Ann Zwick
Freeborn and Peters LLP
311 South Wacker Drive
Suite 3000
Chicago, IL 60606
 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
REGIONS
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

IN THE MATTER OF: )

)
General Iron Industries, Inc. ) NOTICE AND FINDING
) OF VIOLATION
Chicago, Illinois )
) EPA-5-18-IL-14
Proceedings Pursuant to )
Section l 13(a)(l) of the )
Clean Air Act, 42 U.S.C. )
§ 7413(a)(l) )

NOTICE AND FINDING OF VIOLATION

The U.S. Environmental Protection Agency (EPA) is issuing this Notice and Finding of
Violation (NOV/FOY) under Sections! 13(a)(l) and 113(a)(3) of the Clean Air Act (CAA), 42
U.S.C. §§ 7413(a)(l) and 7413(a)(2). EPA finds that General Iron Industries, Inc. (General Iron)
is violating Section l 14(a)(l) of the CAA, 42 U.S.C. §7414, Title V of the CAA, 42 U.S.C.
§§ 7661 a-766lf, and the Illinois State Implementation Plan (SIP), as follows:

Statutory and Regulatory Background

1. The Administrator of EPA may require any person who owns or operates an emission
source who is subject to any requirement of the CAA to provide information required
by the Administrator under Section l 14(a)(l) of the CAA, 42 U.S.C. § 7414(a)(l).
The Administrator has delegated this authority to the Director of the Air and
Radiation Division.

2. Title V of the CAA, 42 U.S.C. §§ 766la-766lf, establishes an operating permit

program for certain sources, including "major sources" and "major stationary
sources."

3. Section 502(a) of the CAA, 42 U.S.C. § 766la(a), and 40 C.F.R. § 70.7(b) provide
that, after the effective date of any permit program approved or promulgated under
Title V of the CAA, no source subject to Title V may operate except in compliance
with a Title V permit.

4. 40 C.F.R. § 70.l(b) provides that all sources subject to the Part 70 regulations shall
have a permit to operate that assures compliance by the source with all applicable
requirements, as defined in 40 C.F.R. § 70.2.

5. Section 503(c) of the CAA, 42 U.S.C. § 766!b(c), and 40 C.F.R. § 70.S(a) provide
that any person required to have a permit under Title V must timely submit an
application for a permit.
 6. U.S. EPA granted full approval to the Illinois Title V operating permit program
(CAAPP) on December 4, 2001, set forth at 415 Illinois Compiled Statutes (ILCS)
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

Section 5/39.5. The program became effective on November 30, 2001. 66 Fed. Reg.
62946.

7. Section 39.5(6)(b) of the Illinois Environmental Protection Act states that no person
shall operate a CAAPP source without a CAAPP permit unless a CAAPP permit or
renewal application has been timely submitted. 415 ILCS § 5/39.5(6)(b).

8. Section 502 of the CAA, 42 U.S.C. § 7661a, applies to all major stationary sources,
defined at Section 501 of the CAA, 42 U.S.C. § 7602.

9. Section 39.5 of the Illinois Environmental Protection Act applies to any source
defined as a major source or major stationary source. 415 ILCS § 5/39.5(2)(a)(ii).

I 0. The definition of "major stationary source" includes any stationary source located in a
"marginal" or "moderate" ozone non-attainment area that emits or has the potential to
emit I 00 tons per year or more of volatile organic compounds. 415 TLCS
§ 5/39 .5(2)( C)(iii).

11. Section I 10 of the CAA, 42 U.S.C. § 7410, requires each state to adopt and submit to
EPA for approval a SIP that provides for the implementation, maintenance, and
enforcement of the National Ambient Air Quality Standards (NAAQS).

12. The Administrator of the EPA approved Illinois' plan for the attainment and
maintenance of the NAAQS under Section 110 of the CAA. See 40 C.F.R. § 52.722
and 55 Fed. Reg. 40661 (October 4, 1990).

13. On May 3 1, 1972, EPA approved Section 201.122 of Title 35 of the Illinois
Administrative Code (IAC) as part of the federally enforceable Illinois SIP. 37 Fed.
Reg. 10862.

14. 35 IAC § 201.122 states that evidence that specified air contaminant emissions, as
calculated on the basis of standard emission factors or other factors generally
accepted as true by those persons engaged in the field of air pollution control, exceed
the limitations prescribed under 35 IAC, Chapter 1, shall constitute adequate proof of
a violation, in the absence of a showing that actual emissions are in compliance.

15. On September 9, 1994, EPA approved Part 211 of the IAC as part of the federally
enforceable Illinois SIP. 59 Fed. Reg. 46567.

16. 35 IAC § 211.3690 defines "maximum theoretical emissions" as the quantity of

volatile organic material emissions that theoretically could be emitted by a stationary
source before add-on controls based on the design capacity or maximum production
capacity of the source and 8760 hours per year.

17. 35 IAC § 211.4970 defines "potential to emit" as the maximum capacity of a

stationary source to emit any air pollutant under its physical and operational design.

2
 Any physical or operational limitation on the capacity of a source to emit an air
pollutant, including air pollution control equipment and restriction on hours of
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

operation or on the type or amount of material combusted, stored, or processed, shall

be treated as part of its design if the limitation is federally enforceable. See also 40
C.F.R. § 70.2; 415 ILCS § 5/39.5(1).

18. On February 21, 1980, EPA approved 35 !AC§ 212.301 as part of the federally
enforceable Illinois SIP. 45 Fed. Reg. 11493.

19. 35 IAC § 212.301 states that no person shall cause or allow the emission of fugitive
particulate matter from any process, including any material handling or storage
activity, that is visible by an observer looking generally toward the zenith at a point
beyond the property line of the emission source.

20. On March 12, 1997, EPA approved 35 IAC § 218.980, as part of the federally
enforceable SIP. 62 Fed. Reg. 11327.

21. 35 lAC § 218.980(a)(l) states that a source is subject to 35 IAC Part 218, Subpart TT,
if it contains process emission units not regulated by the Subparts identified in 35
IAC § 2 l 8.980(a)(l ), which as a group have a maximum theoretical emissions of 100
tons or more per calendar year of volatile organic matter (VOM) and are not limited
to less than I 00 ton ofVOM emissions per calendar year in the absence of air
pollution control equipment through production or capacity limitations contained in a
federally enforceable permit or SIP revision.

22. 35 !AC§ 218.980(b)(l) states, in pertinent part, that a source is subject to 35 IAC
Part 218, Subpart TT, ifit has the potential to emit 25 tons or more ofVOM per year,
in aggregate, from emission units, that are not regulated by the Subparts identified in
35 IAC § 218.980(b)(l)(A) and not included in tbe categories listed in 35 IAC
§ 218.980(b)(l)(B).

23. On October 21, 1996, EPA approved 35 IAC §§ 218.986 and 987, as paii of the
federally enforceable SIP. 61 Fed. Reg. 54556.

24. 35 IAC § 218.986 states that every owner or operator of an emission unit subject to
35 IAC Part 218, Subpart TT shall comply with 35 IAC § 218.986(a).

25. 35 IAC § 218.986(a) requires every owner or operator to operate emission capture
and control equipment which achieves an overall reduction in uncontrolled VOM
emissions of at least 81 percent from each emission unit.

26. 35 IAC §§ 218.987 and 218. l 06(c) require every owner or operator of an emission
unit which is subject to 35 IAC Part 218, Subpart TT to comply with the requirements
of35 IAC Part 218, Subpart TT, by March 15, 1995.

3
 Findings

27. General Iron owns and operates a metal shredding and recycling facility at 1909
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

North Clifton Ave, Chicago, Illinois (Facility), which is located in Cook County.

28. Cook County is part of the Chicago-Naperville, IL-IN-WI nonattainment area which
is classified as "marginal" or "moderate."

29. General Iron stores, processes, and recycles ferrous and non-ferrous scrap metals
from cars and post-consumer sheet metal at the Facility.

30. Scrap metal is shredded in a hammermill shredder at the Facility.

31. On or about June 13, 2017, May 24 & 25, 2018 and June I 3, 2018, EPA conducted
onsite inspections at the Facility, including inspections during emissions testing
conducted by the Facility.

32. On or about November 11, 2017, EPA issued a Section 114 Information Request
(2017 Information Request) to General Iron regarding the Facility. The 2017
Information Request, among other things, required General Iron to conduct emission
testing at the facility and to provide the results of the emission testing to EPA. The
required emissions testing included evaluations ofVOM, particulate matter (PM) and
metals emissions.

33. On December 13, 2017 and May 21, 2018, General Iron met with EPA to discuss the
2017 Information Request.

34. General Iron conducted testing as required by the 2017 Information Request on May
24, 2018, May 25, 2018, including testing for VOM, PM, and metals emissions, and
on June 13, 2018 and June 14, 2018, including testing for PM and metals emissions.

35. During the May 24 & 25, 2018 inspection, EPA observed and recorded hydrocarbons
exiting the hammermill shredder with a FLIR infrared camera.

36. During the June 13, 2018 inspection, EPA observed fugitive particulate matter
emitted from the hammermill shredder crossing the property line.

37. On or about December 12, 2017 and June 27, 2018, General Iron provided responses
to the 2017 Information Request, including the results of emissions testing for VOM
conducted on May 24 and 25, 2018 and emissions testing for PM and metals
conducted on June 13 and 14, 2018.

3 8. General Iron did not provide to EPA the results of the emissions testing for PM and
metals conducted on May 24 and 25, 2018.

39. Based on the results of the emissions testing, the Facility emits or has the potential to
emit more than I 00 tons per calendar year of volatile organic compounds.

4
 40. General Iron is a "major source" as defined at 42 U.S.C. § 7661(2) and 415 ILCS
§ 5/39 .5(2)( C)(i).
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

41. By operating as a major source, General Iron is subject to the requirements of the
CAA's Title V, 42 U.S.C. §§ 766la-766lf, at the Facility.

42. To date, General Iron has not submitted a complete CAAPP permit application to
Illinois EPA.

43. To date, General Iron has not received a CAAPP pern1it from Illinois EPA.

44. Based on the December 12, 2017 response and the results of the emissions testing, the
hammermill shredder at the Facility has maximum theoretical emissions rate of more
than 100 tons per calendar year ofVOM.

45. Based on the December 12, 2017 response and the results of the emissions testing, the
han1mermill shredder alone emits 25 tons or more ofVOM per yea1.

46. To date, General Iron does not have any emission capture or control equipment that
achieves an overall reduction of uncontrolled VOM emissions ofat least 81 percent at
the hammermill shredder nor does it have in place a federally enforceable alternative
control plan that achieves an overall reduction of uncontrolled VOM emissions ofat
least 81 percent at the hammermill shredder.

Violations

47. By failing to submit a timely and complete CAAPP permit application to Illinois
EPA, General Iron has violated of Section 503 of the CAA, the regulations at 40
C.F.R. §§ 70.5(a) and 70.7(b), and the Illinois Environmental Protection Act at 415
ILCS § 5/39.5(4)(c).

48. By operating as a major stationary source without a Title V permit, General Iron has
violated Section 502 of the CAA, the regulations at 40 C.F.R. §§ 70.l(b) and 70.7(b),
and the Illinois Environmental Protection Act at 415 ILCS § 5/39.5(6)(b).

49. General Iron allowed fugitive pmiculate matter from the han1mermill shredder that
was visible by an observer looking generally towa1d the zenith to cross the property
line of the Facility on at least June 13, 2018, in violation of35 IAC § 212.301 and the
SIP.

50. To date, General Iron has failed to install any emission capture or control equipment
that achieves an overall reduction of uncontrolled VOM emissions of at least of 81
percent at the han1mermill shredder or, alternatively, obtain a federally enforceable
equivalent control plan at the han1mermill shredder, in violation of 35 IAC
§ 218.986(a) and the SIP.

5
 51. To date, General Iron has failed to provide the results of the May 24 and 25 PM and
metals emissions testing as required by the 2017 Information Request, in violation of
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

Section 114 of the CAA, 42 U.S.C. § 7414.

Environmental Impact of Violations

52. These violations can cause and have caused excess emissions of VOMs and
particulate matter.

53. VOMs are photochemical oxidants associated with a number of detrimental health
effects, which include birth defects and cancer, as well as environmental and
ecological effects. In the presence of sunlight, VOMs are influenced by a variety of
meteorological conditions and have the ability to create photochemical smog. VO Ms
react with oxygen in the air to produce ground-level ozone.

54. Breathing ozone contributes to a variety of health problems including chest pain,
coughing, throat irritation, and congestion. It can worsen bronchitis, emphysema, and
asthma. Ground-level ozone also can reduce lung function and inflame lung tissue.
Repeated exposure may permanently scar lung tissue.

55. Particulate matter, especially fine particulates, contains microscopic solids or liquid
droplets, which can get deep into the lungs and cause serious health problems.
Particulate matter exposure contributes to:
• irritation of the airways, coughing, and difficulty breathing;
• decreased lung function;
• aggravated asthma;
• chronic bronchitis;
• irregular heartbeat;
• nonfatal heart attacks; and
• premature death in people with heart or lung disease.

Date IfcfwardNam
Director
Air and Radiation Division

6
 CERTIFICATE OF MAILING
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

I certify that I sent a Notice of Violation, No. EPA-5-18-IL-14, by Certified Mail, Return

Receipt Requested, to:

Adam Labkon
Vice President
General Iron Industries Inc.
1909 North Clifton Street
Chicago, IL 60608

I also certify that I sent copies of the Notice of Violation by email to:

Julie Armitage
Chief
Bureau of Air
Julie.armitage@Illinois.gov

Ann Zwick
azwick@,freebom.com

On the \q~ day of_ji

_ u_ \~~,_____2018.

Kathy Jones
Program Technician
AECAB, PAS

CERTIFIEDMAILRECEIPTNUMBER: 7D\l lDrO DDDD rD~6 616'2...

 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
REG ION 5
77 WEST JACKSON BOULEVARD
CHICAGO, IL 60604-3590
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

AUG 2 2 2019
REPLY TO T HE ATTENT ION OF

CERTIFIED MAIL
RETURN RECEIPT REQUESTED

AdamLabkon
General Iron Industries, Inc.
1909 N. Clifton Ave.
Chicago, Illinois 60614

Re: Administrative Consent Order EPA-5-19-113(a)-IL-08

Dear Mr. Labkon:

Enclosed is an executed original of the Administrative Consent Order regarding the above
captioned case. If you have any questions about the Order, please contact me at (312) 886-3850.

Sincerely,

Nathan A. Frank, Chief

Air Enforcement and Compliance Assurance Section (IL/IN)

Enclosure

cc: Susan Tennenbaum/C-14J

Kent Mohr, Illinois Environmental Protection Agency

EXHIBIT B
 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

REGIONS

In the Matter of: ) EPA-5-19-113(a)-IL-08

)
General Iron Industries, Inc. ) Proceeding Under Sections 113(a)(1) and
Chicago, Illinois ) 114(a)(l) of the Clean Air Act, 42 U.S.C.
) §§ 7413(a)(l) and 7414(a)(l)
)

Administrative Consent Order

1. The Director of the Enforcement and Compliance Assurance Division, U.S. Environmental

Protection Agency (EPA), Region 5, is issuing this Order to General Iron Industries, Inc.

(General Iron) under Sections 113(a)(l) and ll4(a)(l) of the Clean Air Act (CAA), 42

U.S.C. §§ 7413(a)(l) and 7414(a)(l).

Statutory and Regulatorv Background

2. The Administrator of EPA may require any person who owns or operates an emission

source who is subject to any requirement of the CAA to provide information required by

the Administrator under Section 114(a)(l) of the CAA, 42 U.S.C. § 7414(a)(l). The

Administrator has delegated this authority to the Director of the Enforcement and

Compliance Assurance Division.

3. Title V of the CAA, 42 U.S.C. §§ 766la-7661f, establishes an operating permit program

for certain sources, including "major sources" and "major stationary sources."

4. Section 502(a) of the CAA, 42 U.S.C. § 766la(a), and 40 C.F.R. § 70.7(b) provide that,

after the effective date of any permit program approved or promulgated under Title V of

the CAA, no source subject to Title V may operate except in compliance with a Title V

permit.

Page 1 of 13
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

5. 40 C.F.R. § 70.l(b) provides that all sources subject to the Part 70 regulations shall have a

permit to operate that assures compliance by the source with all applicable requirements,

as defined in 40 C.F.R. § 70.2

6. Section 503(c) of the CAA, 42 U.S.C. § 7661b(c), and 40 C.F.R. § 70.5(a) provide that any

person required to have a permit under Title V must timely submit a complete application

for a permit.

7. 40 C.F.R. § 70.5(a)(2) requires that, among other things, that a complete application

include all emissions of regulated air pollutants and air pollutant emission rates.

8. U.S. EPA granted full approval to the Illinois Title V operating permit program (CAAPP)

on December 4, 2001, set forth at 415 Illinois Compiled Statutes (ILCS) Section 5/39.5.

The program became effective on November 30, 2001. 66 Fed. Reg. 62946.

9. Section 39.5(6)(b) of the Illinois Environmental Protection Act states that no person shall

operate a CAAPP source without a CAAPP permit unless a CAAPP permit or renewal

application has been timely submitted. 415 ILCS § 5/39.5(6)(b).

10. Sections 39.5(1. l)(a) and (b) of the Illinois Environmental Protection Act states that an

owner or operator of a source may seek exclusion from the CAAPP prior to the date the

CAAPP application for the source is due by submitting a permit application, consistent

with the State permit progran1, requesting exclusion through the imposition of federally

enforceable conditions limiting the potential to emit to below major source thresholds.

11. Section 502 of the CAA, 42 U.S.C. § 7661a, applies to all major stationary sources, defined

at Section 501 of the CAA, 42 U.S.C. § 7602.

12. Section 39.5 of the Illinois Environmental Protection Act applies to any source defined as

a major source or major stationary source. 415 ILCS § 5/39.5(2)(a)(ii).

Page 2 ofl3
 13. The definition of"major stationary source" includes any stationary source located in a
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

"marginal" or "moderate" ozone non-attainment area that emits or has the potential to

emit 100 tons per year or more of volatile organic compounds. 415 ILCS

§ 5/39.5(2)(C)(iii).

14. Each state must submit to the Administrator of EPA a plan for attaining and maintaining

the National Ambient Air Quality Standards under Section 110 of the CAA, 42 U.S.C.

§ 7410.

15. The Administrator of the EPA approved Illinois' plan for the attainment and maintenance

of the NAAQS under Section 110 of the CAA (Illinois SIP). See 40 C.F.R. § 52.722 and

55 Fed. Reg. 40661 (October 4, 1990).

16. On September 9, 1994, EPA approved Part 211 of the IAC as part of the federally

enforceable Illinois SIP. 59 Fed. Reg. 46567.

17. 35 IAC § 211.3690 defines "maximum theoretical emissions" as the quantity of volatile

organic material emissions that theoretically could be emitted by a stationary source before

add-on controls based on the design capacity or maximum production capacity of the

source and 8760 hours per year.

18. 35 IAC § 211.4970 defines "potential to emit" as the maximum capacity of a stationary

source to emit any air pollutant nnder its physical and operational design. Any physical or

operational limitation on the capacity of a source to emit an air pollutant, including air

pollution control equipment and restriction on hours of operation or on the type or amount

of material combusted, stored, or processed, shall be treated as part of its design if the

limitation is federally enforceable. See also 40 C.F.R. § 70.2; 415 ILCS § 5/39.5(1).

Page 3 of 13
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

19. On March 12, 1997, EPA approved 35 IAC § 218.980, as part of the federally enforceable

SIP. 62 Fed. Reg. 11327.

20. 35 IAC § 218.980(a)(l) states that a source is subject to 35 IAC Part 218, Subpart TT, if it

contains process emission units not regulated by the Subparts identified in 35 IAC §

218.980(a)(l) which as a group have a maximum theoretical emissions of 100 tons or more

per calendar year of volatile organic matter (VOM) and are not limited to less than 100 ton

of VOM emissions per calendar year in the absence of air pollution control equipment

through production or capacity limitations contained in a federally enforceable permit or

SIP revision.

21. 35 IAC § 218.980(b)(l) states, in pertinent part, that a source is subject to 35 IAC Part 218,

Subpart TT, if it has the potential to emit 25 tons or more ofVOM per year, in aggregate,

from emission units, that are not regulated by the Subparts identified in 35 IAC §

218.980(b)(l)(A) and not included in the categories listed in 35 IAC § 218.980(b)(l)(B).

22. On October 21, 1996, EPA approved 35 IAC §§ 218.986 and 218.987 as part of the

federally enforceable SIP. 61 Fed. Reg. 54556.

23. 35 IAC § 218.986 states that every owner or operator of an emission unit subject to 35 IAC

Part 218, Subpart TT shall comply with 35 IAC § 218.986(a).

24. 35 IAC § 218.986(a) requires every owner or operator to operate emission capture and

control equipment which achieves an overall reduction in uncontrolled VOM emissions of

at least 81 percent from each emission unit.

25. 35 IAC §§ 218.987 and 218.106(c) require every owner or operator of an emission unit

which is subject to 35 IAC Part 218, Subpart TT to comply with the requirements of 35

IAC Part 218, Subpart TT, by March 15, 1995 or upon startup.

Page 4 of13
 26. Under Section 113(a)(l) and (a)(3) of the CAA, 42 U.S.C. § 7413 (a)(l) and (a)(3), the
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

Administrator of EPA may issue an order requiring compliance to any person who has

violated or is violating a SIP and Title V of the CAA. The Administrator has delegated

this authority to the Director of the Enforcement and Compliance Assurance Division.

Findings

27. General Iron owns and operates a metal shredding and recycling facility at 1909 North

Clifton Ave, Chicago, Illinois (Facility), which is located in Cook County.

28. General Iron receives, processes, and recycles ferrous and non-ferrous scrap metals from

cars and post-consumer scrap metal at the Facility.

29. Scrap metal is shredded in a hammermill shredder at the Facility that is equipped with a

"Pedcon UHF High-Efficiency Roll Filter System" consisting of a capture hood, cyclone

and roll-media filter system.

30. On or about June 13, 2017, May 24 and 25, 2018 and June 13, 2018, EPA conducted onsite

inspections at the Facility, including inspections during emissions testing conducted by the

Facility.

31. On or about November 11, 2017, EPA issued an Information Request pursuant to Section

114 of the CAA (2017 Info1mation Request) to General Iron regarding the Facility. The

2017 Information Request, among other things, required General Iron to conduct emission

testing of the hammermill shredder at the Facility and to provide the results of the emission

testing to EPA. The required emissions testing included VOM, particulate matter (PM) and

metals emissions rates.

32. On December 13, 2017 and May 21, 2018, General Iron met with EPA to discuss the 2017

Information Request.

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 33. General Iron conducted testing as required by the 2017 Information Request on May 24,
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

2018, and May 25, 2018, including testing for VOM, PM, and metals emissions, and on

June 13, 2018 and June 14, 2018, including testing for PM and metals emissions.

34. On or about January 12, 2018 and June 25, 2018, General Iron submitted to EPA responses

to the 2017 Information Request, including the results of emissions testing for VOM

conducted on May 25, 2018 and emissions testing for PM and metals conducted on June

13 and 14, 2018, and an impact assessment for metals emissions.

35. On July 18, 2018, EPA issued General Iron a Notice and Finding of Violation (NOV/FOV)

for violations of the Clean Air Act and the Illinois SIP.

36. General Iron provided to EPA the results of the emissions testing for PM and metals

conducted on May 24, 2018 in subrnittals on July 23, 2018 and August 21, 2018.

37. General Iron submitted a written response to the NOV/FOV on August 23, 2018.

38. General Iron met with EPA to discuss the NOV/FOV on July 24, 2018 and September 14,

2018.

39. Based on the results of the em1ss10ns testing, the Facility is below the permitted

hammermill shredder emission limits for PM and the Facility emits or has the potential to

emit more than 100 tons per calendar year of volatile organic compounds.

40. General Iron is a "major stationary source" as defined at 42 U.S.C. § 7661(2) and 415 ILCS

§ 5/39.5(2)(c)(i).

41. By operating as a major source, General Iron is subject to the requirements of the CAA's

Title V, 42 U.S.C. §§ 7661a-7661f, at the Facility.

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 42. Based on the December 12, 2017 response and the results of the emissions testing, the
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

hamme1mill shredder at the Facility has maximum theoretical emissions rate of more than

100 tons per calendar year ofVOM.

43. Based on the December 12, 2017 response and the results of the emissions testing, the

hammermill shredder emits 25 tons or more ofVOM per year.

44. To date, General Iron does not comply with the VOM control requirements of35 IAC Part

218, Subpart TT, nor does it have in place a federally enforceable alternative control plan

that qualifies for an exemption from these requirements.

45. By operating as a major stationary source without a Title V permit, General Iron has

violated Section 502 of the CAA, the regulations at 40 C.F.R. §§ 70.l(b) and 70.7(b), and

the Illinois Environmental Protection Act at 415 ILCS § 5/39.5(6)(b).

46. On July 16, 2019, General Iron completed installation of a regenerative thermal oxidizer

(RTO) at the Facility.

Compliance Program

4 7. The RTO shall be appropriately designed, operated and maintained in a manner that

ensures the minimum destruction efficiency of the RTO for VOM from the hammennill

shredder is 98%.

48. Within 90 days of the effective date ofthis Order, General Iron must conduct a performance

test to demonstrate the VOM destruction efficiency of the RTO.

49. At least 30 days prior to the date of the performance test, General Iron must submit to EPA

for review and approval a proposed testing protocol describing the methods and procedures

to be conducted during the test. General Iron shall conduct performance testing using, at a

Page 7 of13
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

minimum, EPA Methods 1 or lA, 2 or 2A, 2B or 2C, 3, 4, and 25A, to demonstrate that

the RTO achieves the required VOM destruction efficiency.

50. General Iron shall use the RTO operating data from a successful performance test to

establish a set point temperature for the RTO that achieves the demonstrated VOM

destruction efficiency of the RTO.

51. Within 60 days of the completion of the performance testing conducted according to the

approved testing protocol, General Iron shall submit to EPA the results of the performance

testing including:

a. A summary of the results including inlet and outlet organic material concentrations,

destruction efficiency of the RTO, visual observations of capture efficiency and

RTO operating temperatures.

b. A description of the facility operations at the time of the test, including operating

parameters;

c. A description of the sampling and analytical procedures; and

d. All copies of data and measurements obtained during the testing.

52. Within 90 days of the completion of the performance testing, General Iron must submit a

permit application to the lllinois EPA to incorporate the following conditions into a

federally enforceable state operating permit (FESOP):

a. Control Device: operate an RTO to control em1ss10ns from the hammermill

shredder at the Facility;

b. Operation requirements:

1. Minimum combustion temperature must be maintained in the RTO, as

determined by the performance test; and

Page 8 ofl3
 11. Minimum air flow or fan power must be maintained, as dete1mined by the
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

performance test;

c. Control equipment requirements: 98 percent or greater VOM destruction

efficiency, by weight, of the RTO;

d. Emission limits: Annual VOM emission limits and RTO destruction efficiency

requirements;

e. Monitoring requirements:

i. Continuous monitoring of temperature; and

11. Continuous monitoring of air flow or fan power;

f. Recordkeeping requirements:

i. A log of the operating times for the shredder;

11. A log of temperature and air flow or fan power operating records from

continuous monitoring; and

111. A log of any deviations from the operational limits for combustion

temperature in the RTO .

53. General Iron must submit a copy of the FESOP permit application to EPA within 7 days

of submitting the application to Illinois EPA.

54. General Iron must send all responses, deliverables, submittals or reports required by this

Order to connolly.scott@epa.gov, and r5airenforcement@epa.gov. If electronic responses

are not possible, send all documents to:

Attention: Compliance Tracker (AE-18J)

Air Enforcement and Compliance Assurance Branch
U.S. Environmental Protection Agency, Region 5
77 W. Jackson Boulevard
Chicago, Illinois 60604

Page 9 of13
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

General Provisions

55. This Order does not affect General Iron's responsibility to comply with other federal, state,

and local laws.

56. This Order does not restrict EPA's authority to enforce the CAA and its implementing

regulations.

57. Failure to comply with this Order may subject General Iron to penalties up to $99,681 per

day for each violation under Section 113 of the CAA, 42 U.S.C. § 7413, and 40 C.F.R. Part

19.

58. The terms of this Order are binding on General Iron, its assignees and successors. General

Iron must give notice of this Order to any successors in interest prior to transferring

ownership and must simultaneously verify to EPA, at the above address, that it has given

the notice.

59. General Iron may assert a claim of business confidentiality under 40 C.F.R. Part 2, Subpart

B, for any portion of the information it submits to EPA. Information subject to a business

confidentiality claim is available to the public only to the extent allowed by 40 C.F.R. Part

2, Subpart B. If General Iron fails to assert a business confidentiality claim, EPA may

make all submitted information available, without further notice, to any member of the

public who requests it. Emission data provided under Section 114 of the CAA, 42 U.S.C.

§ 7414, is not entitled to confidential treatment under 40 C.F.R. Part 2, Subpart B.

"Emission data" is defined at 40 C.F.R. § 2.301.

60. This Order is not subjectto the Paperwork Reduction Act, 44 U.S.C. § 3501 et seq., because

it seeks collection of information by an agency from specific individuals or entities as part

of an administrative action or investigation. To aid in our electronic recordkeeping efforts,

Page 10 of 13
 please furnish an electronic copy on physical media such as compact disk, flash drive or
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

other similar item. If it is not possible to submit the information electronically, submit the

response to this Order without staples; paper clips and binder clips, however, are

acceptable.

61. EPA may use any information submitted under this Order in an administrative, civil

judicial, or criminal action.

62. General Iron agrees to the terms of this Order. General Iron waives any remedies, claims

for relief, and otherwise available rights to judicial or administrative review that it may

have with respect to any issue of fact or law set forth in this Order, including any right of

judicial review under Section 307(b) of the CAA, 42 U.S.C. § 7607(b).

63. This Order is effective on the date of signature by the Director of the Enforcement and

Compliance Assurance Division. This Order will terminate on the earlier of either two

years from the effective date of the Order, provided that General Iron certifies that it has

complied with all terms of the Order, or at the time General Iron certifies that it has

complied with all terms of the Order and that it is no longer operating at the Facility.

Page 11 of13
 General Iron Industries, Inc.
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

Date Adam Labkon

Vice President
General Iron Industries, Inc.

Page 12 of 13
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

United States Environmental Protection Agency

8/d.'7J./~o,q
Date ' Michael D. Harris
Acting Director
Enforcement and Compliance Assurance Division
U.S. Environmental Protection Agency, Region 5

Page 13 of 13
 CERTIFICATE OF MAILING
FILED DATE: 10/7/2019 3:36 PM 2019CH11577

I certify that I sent the Administrative Consent Order, EPA-5-19-l 13(a)-IL-08, by certified mail,
return receipt requested, to:

Adam Labkon
General Iron Industries, Inc.
1909 N. Clifton Ave.
Chicago, Illinois 60614

I also certify that I sent a copy of the Administrative Consent Order, EPA-5-19- l 13(a)-IL-08, by
E-mail to:

KentMohr,Manager
Compliance Section
Bureau of Air
Illinois Environmental Protection Agency
Kent.Mohr@Illinois.gov

On the ~ ~day of_

J.\_U~
'\1$+
_ _ _ _ _ 2019

Kathy Jones
Program Technician
AECAB,PAS

CERTIFIED MAIL RECEIPT

NUMBER:
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EXHIBIT C-1
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EXHIBIT C-2
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EXHIBIT D
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