Owens Corning backs out of Gresham plant

Air quality - The company doesn't totally rule out the plant, where it planned to use an ozone-depleting gas

Tuesday, May 09, 2006

CATHERINE TREVISON

Owens Corning has dropped -- at least for now -- its plans for a controversial Gresham insulation plant that would have used the ozone-depleting greenhouse gas HCFC 142-b.

But the company hasn't ruled out the possibility of someday finishing construction on the Gresham plant or of using the controversial gas there in the future, a company spokesman said Monday.

"Nothing additional has been decided beyond the fact that we've not decided to proceed with the facility as it is today," Owens Corning spokesman Jason Saragian said.

In a short letter to the Oregon Department of Environmental Quality, the company withdrew its application for an air-quality permit because it was "not interested in constructing the facility as described in the . . . application."

The company's letter "leaves it very open. It doesn't close the door for a future permit," said Nina DeConcini, DEQ communications and outreach manager.

The company started building the shell of the plant more than two years ago while trying to get the DEQ permit. But it faced intense opposition at packed public hearings, a federal lawsuit by three environmental groups, and a recent proposal by the Environmental Protection Agency to ban some uses of HCFC 142-b immediately, rather than waiting until 2010.

"It's not a big surprise. Their proposal . . . has been an ongoing train wreck," said David Paul of the Oregon Center for Environmental Health, one of the three groups suing Owens Corning in U.S. District Court. "I think that regulatory requirements are making the use of this HCFC (hydrochlorofluorocarbon) extremely unlikely, and it's a good thing."

But Saragian said neither the lawsuit, the proposed EPA rule nor opposition by what he called a "vocal minority" influenced the company. Instead, managers dropped the current plan in an "ongoing assessment of all of our businesses," he said. Saragian said he could not discuss details of that assessment for fear of tipping off competitors.

Rigid foam insulation makers are seeking a substitute for gases such as HCFC 142-b, which is used to blow bubbles into polystyrene. The EPA condoned the use of the ozone-depleting substances in the mid-1990s because they are less harmful to the ozone layer than the chemicals they replaced. But regulators said they were a temporary bridge to be used only until manufacturers could find a substitute.

Owens Corning, which makes the insulation at three existing plants, said last year that existing alternatives resulted in a fragile foam that doesn't insulate as well.

Using the gas is still legal, and the DEQ said it likely would give Owens Corning a permit for the Gresham plant. But in November, the EPA proposed an immediate ban of some uses of HCFC 142-b for new users.

EPA's definition of new users wasn't clear, and the DEQ stopped work on Owens Corning's application to see whether the EPA proposal would become law and whether it would apply to Owens Corning in Gresham.

The long fight, combined with the proposed EPA rule, likely made it "totally infeasible" for Owens Corning to use HCFC 142-b at the Gresham plant, said Melissa Powers of the Pacific Environmental Advocacy Center, which represents the three environmental groups.

The groups are now negotiating to settle the case, said Mark Riskedahl, executive director of the Northwest Environmental Defense Center. He thinks the company will not continue trying to use HCFC 142-b in Gresham.

However, "we don't want to be premature. We don't have the champagne going or anything," he said. "We want to get them to a point where they are legally obligated to follow a certain path rather than implying they are going to."

Saragian said Owens Corning remains committed to Gresham as an "ideal location to do business."