RECOMMENDATION
SEP 1 6 2002

DYNEGY MIDWEST GENERATION, INC.

Refurbished LowNOx Burner Unit 3/Separated

Overfire Air System

Property Identification Number

02-10-100-001

TO:

Dorothy Gunn, Clerk

Illinois Pollution Control Board

State of Illinois Center

100 W. Randolph Street, Suite 11-500

Chicago, Illinois 60601

Steve Santarelli

Illinois Department of Revenue

101

West Jefferson

P.O. Box 19033

Springfield,

Illinois 62794

CLERK’S

OFFICE

MAR

312003

STATE OF ILLINOIS

Pollution

Control

Board

Rick Dietricx

Dynegy Midwest Generation, Inc.

2828 North Monroe St.

Decatur, Illinois

62526

PLEASE TAKE NOTICE that I have today filed with the Office ofthe Pollution Control

Board

the

APPEARANCE

AND

RECOMMENDATION

the

Illinois

Environmental

Protection Agency, a copy ofwhich is herewith served upon you.

ILLINOIS ENVIRONMENTAL PROTECTION AGENCY

1021

North Grand Avenue East

P.O.Box

19276

Spring field, IL 62794-9276

Telephone: 217/782-5544

Facsimile:

217/782-9807

TDD:

217/782-9143

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

)

PCB

OL~

)

(Tax Certification)

)

NOTICE

Date:

March28, 2003

/.e~#

RobbH. Layman

Special Assistant Attorney General

ARDC #6205498

THIS FILING IS SUBMITTED

ON RECYCLED PAPER

CLERK’S

OFFICE

MAR

S. 12003

BEFORE THE

ILLINOIS POLLUTION CONTROL BOAP~~ATE

OF ILLINOIS

Pollution

Control Board

DYNEGY MIDWEST GENERATION, INC.

)

Refurbished Low NOx Burner Unit 3/Separated

)

OverfireAir System

)

PCB~~’

Property Identification Number

(Tax Certification)

02-10-100-001

)

APPEARANCE

I hereby file my Appearance

this

proceeding

behalf of the

Illinois

Environmental

Protection Agency.

Robb H. Layman

Special Assistant Attorney General.

ARDC#6205498

ED:March28,2003

--.

ILLINOIS ENVIRONMENTAL PROTECTION AGENCY

1021 North Grand Avenue East

P.O. Box

19276

Springfield,

Illinois 62794-9276

Telephone: 217/782-5544

Facsimile:

217/782-9807

THIS FILING IS SUBMITTED

TDD:

217/782-9143

ON RECYCLED PAPER

RE ~

yE D

CLERK’S

OFFICE

MAR

12003

STATE OF ILLINOIS

Pollution

Control Board

BEFORE

THE

ILLINOIS POLLUTION CONTROL BOAR)

DYNEGY MIDWEST GENERATION, INC.

)

Refurbished LowNOx Burner Unit 3/Separated

)

OverfireAir System

)

PCBVJ

Property Identification Number

)

(Tax Certification)

02-10-100-001

)

RECOMMENDATION

Now Comes the Illinois ~nvironmental

Protection Agency (~lll1no1s

EPA”), through its

attorneys, and pursuant to Section

125.204 ofthe Illinois Pollution Control Board’s (“Board”)

regulations files the following Recommendation regarding the tax certification ofair pollution

control facilities pursuant to

Ill. Adm.

Code 125.204.

On September 16, 2002, the Illinois EPA received a request from DynegyMidwest

Generation, Inc. for an Illinois EPA recommendation regarding the tax certification of air

pollution control facilities pursuant to 35 Ill. Adm.

Code

125.204, and noted the request

log number TC-02-09-16A. (Exhibit A)

The applicant’s address is:

Rick Diericx

Dynegy Midwest Generation, Inc.

2828 North Monroe St.

Decatur, Illinois

62526

The air pollution control facilities in this request are located at 10901

Baldwin Road,

Baldwin, Randolph and consist ofthe following:

Refurbishment of LowNOx Burner Unit 3/Separated Overfire.Air System which

reduces NOx emissions from the existing low NOx system.

Because the primary

purpose ofthis system is to reduce or eliminate air pollution, it is certified as a

pollution control facility.

Section 11-10 ofthe Property Tax Code,

35 ILCS 200/11-10 (2000), defmes “pollution

control facilities” as: “any system,

method, construction, device or appliance appurtenant

thereto or any portion of any building or equipment, that

is designed, constructed,

installed or operated for the primary purpose of:

(a)

eliminating, preventing, or reducing

air or water pollution

or (b) treating, pretreating, modi~’ingor disposing ofany

potential solid, liquid or gaseous pollutant which if released without treatment,

pretreatment modification or disposal might be harmful, detrimental or offensive to

human, plant or animal life, or to property.”

Pollution control facilities are entitled to preferential tax treatment, 35 ILCS 200/11-5

(2000).

Based on the information in the application and the purpose ofthe facilities, to prevent,

eliminate or reduce airpollution,

is the Illinois EPA’s engineeringjudgment that the

described facilities may be considered “pollution control facilities,” pursuant to 35 Ill.

Adm.

Code

125.200(a), with the primary purpose ofeliminating, preventing, or reducing

air pollution, or as otherwise provided in 35 Ill. Adm.

Code

125.200.

Therefore, the

facilities are eligible for tax certification from the Board.

Therefore, the Illinois EPA recommends that the Board issue the requested tax

certification.

ILLINOIS ENVIRONMENTAL PROTECTION AGENCY,

By:

_____________________________

Robb H. Layman

Special Assistant Attorney General

Of Counsel:

Charles E.

Matoesian

Assistant Counsel

March28,2003

1021 North Grand Ave. E.

P.O. Box

19276

Springfield, Illinois 62794-9276

Telephone:

217/782-5544

Facsimile:

217/782-9807

TDD:

217/782-9143

rc—o~--~’?-~

/t~,J~

APPLICATION FORCERTIFICATION

(PROPERTY

TAX

TREATMENT)

POLLUTION CONTROL FACILITY

AIR~J

WATER

ILLINOIS ENVIRONMENTAL PROTECTION

AGENCY

P. 0.

Box 19276, Springfield, IL

627949276

This

Agency

authorized

request

this

information under Illinois Revised Statues,

1979,

Chapter,

120,

Section

502a-5.

Disclosureofthis

information

voluntary.

However,

failure

comply

could

prevent your

application

from

being processed or ould result in denial ofyour

application for certification.

FOR AGENCY

USE

File

No.

Date Received

Certification No.

Date

Sec. A

I—

Company Name

Dynegy

Midwest Generation, Inc.

Person Authorized to Receive Certification

Person to Contact for Additional Details

RickDiericx

StreetAddress

Street Address

2828

North

Monroe Street

2828 North Monroe Street

Municipality, State & Zip Cod.e

Municipality,

State & Zip Code

Decatur,

62526

Decatur,

62526

Telephone Number

Telephone

Number

(217)

872-2354

Location of Facility

Municipality

Township

QuarterSection

Township

Range

Street Address

County

Book Number

10901 Baiwin

Road,

Box

146, Baldwin, IL 62217

Randolph

Property identificatioti Number

Parcel Number

02-10-100-001

Sec.

~o,

I-—

Nature of Operations

Conducted. at theAbove Location

Electric power generation

Unit

Water Pollution Control Construction Permit No.

Date Issued

NPDES PERMIT No.

Date Issued

Expiration

Date

Air Pollution Control Construction Permit No.

Date Issued

Air Pollution Control Operating Permit No.

75040091

Date Issued

June 26, 1997

Sec. C

Describe Unit Process

Coal combustion, steam production and electricity generation.

—————

~~1~

—

~Q’

Materials Used in Process

REC

Solid and liquid fuels,water and air.

SEP

2002

i~t~.DAP(i

Sec.

Describe

Pollution Abatement Control

Facility

.‘

Refurbishment of Baldwin Unit 3 low-NOx burner/separated overfire air (SOFA) system to improve the furability,

operability and flexibilityof the existing lowNOx

systôm.

The refurbishment includes:

Maintenance

and refurbishment of various

SOFA components;

Replace existingSOFA tilt drives with new hydraulic tilt drives, and;

Replace air, SOFA and coal nozzles for better performance with PRB fuel.

Influent: 0.484 Lbs.NOx/mmBtu (AP-42 estimate)

Effluent: 0.123

Lbs.NOx/mniBtu

~3fflciency:

74.6/0

(estimated)

)

IL 532-0222

APC

151

(Rev. 8/00)

Tax Certificationfor Pollution Control Facilities

Pagelof2

IllinoisEPAExhibitNo.

_____

8/00

Sec.

(1)

Nature

of Contaminants or Pollutants

Tax

Certification

for Pollution Control

Facilities

Page

of2

8/00

Material Retained, Captured or Recovered

-1

U-

-j

F-

C-)

I-

~~1

I.-

Contan~iinantor Pollutant

DESCRIPTION

DISPOSAL

USE

Nitrogen oxides

NOx

Reduces

conversion of N and 02

to NOx

(2)

Point(s~of Waste Water Dischar~e

Plans and

SpecificationsAttached

Yes

i~L

Are

contaminants (or residues)

collected

by the control facility?

Yes

“

(4)

Date installation

completed

J~S~L_status

of installation

date of application ~

(5)

FAIR CASH VALUE IF CONSIDERED REAL PROPERTY:

 4,387,100

—

NETSALVAGEVALUEIFCONSIDEREDREALPROPERTY:

—

PRODUCTIVE GROS.S ANNUAL

INCOME OF CONTROL FACILITY:

PRODUCTIVE NET ANNUAL

INCOME OF CONTROL FACILITY:

PERCENTAGE CONTROL FACILITY BEARS TO WHOLE FACILITYVALUE:

100

Sec.

‘Th~iollowing

information is submitted in accordance with the Illinois Property Tax Code, as amended, and to the best of my

knowledge, is true and correct.

The facilities claimed herein are ~poIlution

control facilities” as

deflned in Section

11-10 of the

Uhinois Propert

x Cbde.

Manager,

Environmental Resources

Signature

Title

eo. G

INSTRUCTIONS FOR COMPILING

AND

FILING APPLICATION

General:

Separate applications must be completed for each control facility claimed.

Do not mix types (water and air).

Where both air and

water operations are related, file

two

applications.

If attachments are needed, record them consecutively on an index sheet.

Sec. A

Information refers to applicant as listed in the tax records and the person to be contacted for

further

details or for inspection of

facilities.

Defirte facility location by street address or legal description.

A plat map location is required for facilities located

outside_of municipal_boundaries._The_property

identification_number is_required.

Sec. B

Self-explanatory.

Submit copies of all permits issued by local pollution control agencies.

(e.g. MSD Constwction Permit)

Sec.

Refersto manufacturing processes or materials on which pollution control facility is used.

Sec.

Narrative description of the pollution control

facility, indicating that

its

primary purpose

is to eliminate, prevent orreduce pollution.

State the type of control

facility.

State permit number, date, and agencyissuing permiL

A narrative description and a process

flow diagram describing the pollution control facility.

Include a listing of each major piece of equipment included in the claimed

fair cash value for real property.

Include an averticie analysis of the influent and effluent of the control facility stating the

~,,

collection efficiency.

Sec. E

List air contaminants, or water pollution substances re e~s~ta~

effluentstethe-manufacturing-processes

List alsoihe finat

disposal ofany

ntarfiih~hTs

növédFom

the manufacturing processes.

Item (1)— Refers to pollutants and contaminants removed from the process by the pollution control facility.

Item (2)— Refers to water pollution but

can

applyto Water-carried wastes from air pollution control facilities.

Submit drawings,

which clearly show (a) Point(s) of discharge to receiving stream,

and (b) Sewers and process piping to and from the control

facility.

Item (3)—If the collected contaminants are disposed of other than as wastes, state the disposition of the materials, and the value

in dollars reclaimed by sale or reuse ofthe collected substances.

State the cost of reclamation and related expense.

Item (4)— State

the

date

which the

pollution control facility was firstplaced in service and operated.

If not, explain.

Item (5)

—

This information is essential -to the certification and assessment actions.

This accounting data must be completed to

activate project review prior to certification by this Agency.

Sec.

Self-explanatory.

Signature must be a corporate authorized signature.

Submit to:

Attention:

Illinois

EPA

Thomas McSwiggin

Donald

E. Sutton

P.O.

Box 19276

Permit Section

Springfield, IL

62794-9276

Division of Water Pollution Control

Division of

Air

Pollution Control

PROOF OF

SERVICE

the

undersigned,

certify

that

have

served

the

attached

Appearance

and

Reconmiendation

upon

the

person

whom

directed,

placing

them

envelope

addressed to:

TO:

Dorothy Gunn, Clerk

Illinois

Pollution Control Board

State

ofIllinois

Center

100W. Randolph Street, Suite 11-500

Chicago, Illinois 60601

Steve Santarelli

Illinois Department ofRevenue

101

West Jefferson

P.O.

Box 19033

Springfield, Illinois 62794

Rick Diericx

Dynegy Midwest

Generation, Inc.

2828 North Monroe St.

Decatur, Illinois 62526

and mailing it by First Class Mail from Springfield, Illinois on March 28, 2003, with sufficient

postage affixed.

--RübbH;-Layman

Special Assistant Attorney General

ARDC#6205498

THIS FILiNG IS SUBMITTED

ON RECYCLED PAPER