Insulation factory under fire from watchdogs

Shelly Strom

Business Journal staff writer

If Owens Corning builds and operates an insulation manufacturing factory near Gresham according to plan, the facility potentially could emit literally a ton of greenhouse gas each workday -- making it one of the single biggest air polluters in the state.

But a lawsuit filed by a trio of environmental activist organizations aims to lessen the amount of air pollution that would be emitted in Oregon by the Toledo, Ohio, company.

Owens Corning prematurely began construction on its facility and needs approval from pollution regulators before continuing, according to a lawsuit filed in U.S. District Court Nov. 24 on behalf of Northwest Environmental Defense Center, Oregon Center for Environmental Health and the Sierra Club.

"Right now we are working on two tracks. The first is in federal court to get construction stopped until the facility gets the required permits. The second is to get involved in the permitting process and present enough information so hopefully [state regulators] will impose pollution controls," said Melissa Powers, an attorney with Pacific Environmental Advocacy Center working on behalf of plaintiffs.

Officials at Owens Corning denied that the company is out of compliance with any laws.

"We are complying with the appropriate regulations and are committed to following the process," said Jim Worden, spokesman for Owens Corning.

The company is in the process of getting an air quality permit from the Oregon Department of Environmental Quality.

The manufacturing facility, according to information filed with DEQ, annually would emit 283 tons of a potent greenhouse gas that destroys the earth's atmosphere.

The gas, known as HCFC-142b, is a halogenated chlorofluorocarbon. The Environmental Protection Agency has ruled that HCFC-142b cannot be manufactured past 2010 and will not be allowed for use in the United States past 2015.

The decision, which happened years ago, is a result of a global treaty known as the Montreal Protocol on Substances that Deplete the Ozone Layer signed in 1988 by then-Vice President George H.W. Bush.

The volume proposed for emission by Owens Corning at its new facility would be equivalent to the amount of greenhouse gases emitted if 100,000 vehicles set out on a yearlong, 12,000-mile trip through the state, according to DEQ calculations.

Because the gas breaks down gradually over years, the emissions would accumulate. Scientists believe depletion of ozone in the atmosphere allows more ultraviolet radiation to reach the earth, which can increase the incidences of skin cancer and can cause damage to crops.

DEQ officials say they are not aware of other entities in Oregon with permits allowing emissions of halogenated chlorofluorocarbons.

However, air conditioning units found in older vehicles and old refrigerated storage units contained the greenhouse gas and may still be in use.

Owens Corning announced last June that it planned to build a facility to manufacture rigid extruded polystyrene foam insulation panels. The 50,000-square-foot operation being built near Gresham would be Owens Corning's third Oregon location and is expected to employ 35 people.

Worden said construction at the facility is on track for production to begin by next summer.

DEQ officials, however, acknowledge that the project may not continue according to schedule.

Because it does not have a preconstruction permit, "Owens Corning is proceeding at [the construction] site at its own risk," said Audrey O'Brien, air quality program manager for DEQ. Without the permit, according to federal rules, construction must be limited to excavation.

Although Owens Corning has submitted a permit application, DEQ will wait to issue a permit until a public comment period closes in January.

In its application, Owens Corning indicated that it does not plan to use equipment that could capture greenhouse gas before it is emitted into the atmosphere. "One hundred percent of the HCFC-142b used in their processes would be emitted," O'Brien said.

According to a cost analysis by Owens Corning, installing equipment to capture some of the emissions would be cost-prohibitive, she said.

Attorney Powers said her clients aren't satisfied with the company's effort to incorporate pollution control devices into its design.

"One of the problems we see is that there isn't an adequate cost-benefit analysis on pollution controls. We are not aware of any air quality permits that do not impose controls for a potent greenhouse gas like this," Powers said.

Owens Corning, which employs roughly 18,000 people, recently posted third-quarter net income of $94 million on revenue of $1.5 billion and reported a cash balance of $822 million.

Owens Corning is operating under Chapter 11 bankruptcy protection, a measure undertaken in 2000 "to address the growing demands on its cash flow resulting from its multibillion-dollar asbestos liability."

Contact Shelly Strom at sstrom@bizjournals.com