Louisiana DEQ grants Denka 2-year extension for chloroprene emission compliance

LAPLACE, La.—Top Louisiana government officials are defending Denka Performance Elastomer L.L.C., following a rejection of Denka's request to stay a 90-day compliance period imposed by the U.S. EPA for chloroprene emissions.

In fact, the Louisiana Department of Environmental Quality has taken the rare step of superseding EPA in its compliance deadline, granting DPE a two-year extension under what DEQ calls "its own authority, as granted under the Clean Air Act."

"It is great to be here today amongst the hardworking people of Denka," Gov. Jeff Landry said during a July 1 press conference at DPE. "It is important for you and the American people to recognize that this is a great example of the way the Biden administration has targeted American workers and companies, wanting to transpose those products and jobs to China."

EPA could not immediately be reached for comment. Outside of the Louisiana officials' claims of DEQ authority, it is unclear whether the state can supersede federal mandates in this matter.

Denka is the only producer in the U.S. of neoprene, an important elastomer used in defense and security applications, construction, medical goods and wetsuits, among many other end uses.

"It is important to recognize that if they close this facility, shedding these great people of their jobs and exporting those jobs, we will be dependent on China to produce the very products we are talking about here today," Landry said.

The July 1 press conference came on the heels of the U.S. Court of Appeals for the District of Columbia's June 26 rejection of the emergency motion filed by DPE May 28.

According to LDEQ Sec. Aurelia Giacometto, DEQ sits "squarely in the middle of environment and business."

"And last week, by the authority given to me and this agency, we re-issued a two-year extension for Denka to be able to implement its emissions reductions," Giacometto said to rousing applause. "It is impossible to implement those reduction emissions in 90 days. In effect, EPA's rule is effectively a stop-order for this company.

"And Louisiana will not stand idly by and let that happen. Under authority given to DEQ, the extension was granted, and they can continue to operate and reduce their emissions moving forward."

Louisiana Attorney General Liz Murrill apologized to Denka workers—about 250 are employed in LaPlace—for "EPA's constant attacks on you."

"This rule forces Denka into this impossible box. It affects national security, supply chains ... and there are many reasons we should be invested in these challenges," Murrill said. "(EPA) is attacking our ability to regulate (as a state) under the Clean Air Act, trying to take away our authority to grant an extension for this."

In the appellate court's brief published June 26, a three-judge panel for the U.S. Court of Appeals for the District of Columbia circuit wrote that DPE had not "satisfied the stringent requirements for a stay pending court review."

Denka filed the motion to stay May 28, calling the 90-day compliance period a "draconian and politically motivated" act by EPA.

While Denka received a 90-day mandate, other synthetic organic chemical manufacturing plants in the chemical manufacturing corridor—known collectively known as "Cancer Alley"—and throughout the U.S. received two years to comply with new EPA emissions rules.

"DPE took this action to prevent EPA from singling out its facility with an illegal and politically motivated deadline that EPA, itself, acknowledges is impossible to meet," Denka told Rubber News in a May 28 email.

The litigation is the result of EPA on April 9 finalizing a major rule governing toxic air emissions at about 200 synthetic organic chemical, polymer and resin production plants from the Gulf Coast to West Virginia.

The update to the Clean Air Act, announced by the Biden administration through EPA Administrator Michael Regan, has its roots in the Mississippi River Chemical Corridor, an 85-mile stretch of 150 chemical plants in Louisiana between Baton Rouge and New Orleans.

Denka said it requested an administrative stay of EPA's 90-day compliance period April 17, a request the company said was denied by EPA April 30.

EPA has denied that Denka ever took the administrative step to stay the 90-day compliance period.

For the motion to stay at the federal appeals level, Denka urged a decision by June 28, citing "continuing, escalating and irreparable harm."

"Unless DPE can obtain relief from the 90-day compliance deadline, the facility will have to shut down and likely never restart," Denka stated in May.

EPA alleges that DPE's facility represents a danger to the nearby community (classifying chloroprene as a "likely carcinogen"), despite the facility's stated compliance with federal and state air-permitting requirements.

Giacometto commented July 1 that there is "no science behind" any of the health safety claims being made by EPA.

Robert Taylor, founder of Concerned Citizens of St. John the Baptist Parish, disagrees, telling Rubber News April 9 that the community continues to suffer from high rates of cancer and other diseases due to under-regulated emissions.

"After the EPA closed our civil rights complaint without resolution, we felt little hope that any government could protect us from industry," Taylor said. "But Administrator Regan's visit to our community and this final rule are renewing our hope. They're a starting point for lowering toxic emissions and saving the children in our community."

The Denka facility sits within several miles of an elementary school in St. John the Baptist Parish in LaPlace.

 

EPA Administrator Regan traveled to LaPlace more than one year ago, using DPE as a backdrop to announce the then-proposed rule that is set to curb emissions by up to "6,000 tons per year."

Denka has traded lawsuits with the Department of Justice and the EPA over the past two years, challenging both the science behind the measurement methodology and implementation of policies to curb plant emissions.

The company said it will challenge this new rule and "EPA's steadfast refusal to consider the most recent science on chloroprene risk in setting the requirements of the rule."

The updated EPA rule seizes on more than 80 different chemicals overall, however those slated for fenceline measurements include: 1,3-butadiene, benzene, ethylene dichloride and vinyl chloride, to accompany chloroprene and ethylene oxide.

For fenceline monitoring at synthetic organic chemical manufacturing plants, the agency set a deadline of two years (April 9, 2026) in response to comments that facilities and laboratories need additional preparation time to begin the monitoring programs.

For neoprene production sources, EPA set a 90-day deadline (July 9) for beginning fenceline monitoring of chloroprene emissions—precisely what Denka vehemently opposed and has apparently circumvented.

The company pointed to nearby chemical plants with "higher estimated risk" that do not fall under the EPA's 90-day deadline.

"There is no lawful basis for EPA's disparate treatment of the DPE facility, requiring DPE to propose and engage in 'specific measures' to further 'reduce emissions' in order to alleviate the irreparable burdens caused by the 90-day implementation requirement, when all other facilities subject to the rule, including multiple facilities with higher estimated risk than the DPE facility, are not subject to any such requirements yet still received a two-year implementation period," Denka stated in the May 28 court filing.

"There is no 'imminent endangerment' near DPE's LaPlace facility. This is demonstrated by the facility's fenceline monitoring system, which confirms that chloroprene emissions remain at historically low levels due to DPE's significant investments and innovation, coupled with the dedicated work of our employees."

Denka has further cited the Louisiana Tumor Registry, which Denka said shows "no increased risk of cancer in and around the Denka facility."

The company said it has invested more than $35 million in voluntary environmental plant upgrades since purchasing the facility in 2015.

Denka Plant Manager Michelle Helfrich thanked Giacometto July 1 for granting the extension.

"She has demonstrated steadfast support for our facility," Helfrich said. "We would not be where we are today without this leadership. LDEQ's decision to grant this extension of the compliance deadline comes after a decade of investment that has reduced this plant's emissions to historically low levels."