BEFORE THE ILLINOIS POLLUTION CONTROL
BOARD
IN THE MATTER OF:
SECTION 27
PROPOSED RULES FOR
NITROGEN
OXIDE (NOx) EMISSIONS
FROM STATIONARY RECIPROCATING
INTERNAL COMBUSTION
ENGINES AND
TURBINES: AMENDMENTS
TO 35 ILL.
ADM. CODE
PARTS 211 AND 217
R07-19
(Rulemaking - Air)
NOTICE OF
FILING
TO: Mr. John
Therriault
Assistant
Clerk of the Board
Illinois Pollution Control Board
100 West Randolph Street
Suite 11-500
Chicago, Illinois 60601
(VIA ELECTRONIC
MAIL)
Mr. Tim Fox
Hearing Officer
Illinois Pollution Control Board
100 West Randolph Street
Suite 11-500
Chicago, Illinois 60601
(VIA ELECTRONIC MAIL)
(SEE PERSONS ON ATTACHED SERVICE
LIST)
PLEASE TAKE NOTICE that I have today filed
with the Office of the Clerk of
the
Illinois Pollution Control Board the COMMENTS
OF THE ILLINOIS
ENVIRONMENTAL REGULATORY
GROUP, copies of which are herewith served
upon you.
Respectfully submitted,
ILLINOIS ENVIRONMENTAL
REGULATORY GROUP,
By: /s/ N. LaDonna Driver
N. LaDonna
Driver
Dated:
June 9, 2008
N. LaDonna Driver
HODGE DWYER
ZEMAN
3150 Roland
Avenue
Post Office Box 5776
Springfield, Illinois 62705-5776
(217) 523-4900
THIS FILING SUBMITTED
ON RECYCLED PAPER
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
CERTIFICATE
OF SERVICE
I, N.
LaDonna Driver, the undersigned, hereby certify
that I have served the
attached COMMENTS OF THE ILLINOIS
ENVIRONMENTAL REGULATORY
G ROUP upon:
Mr. John Therriault
Assistant Clerk of the Board
Illinois Pollution Control
Board
100 West Randolph
Street
Suite 11-500
C hicago, Illinois 60601
v ia electronic filing
and by depositing said documents in the
prepaid, in Springfield, Illinois, on June 9,
2008; and upon:
Mr. Tim Fox
Hearing Officer
Illinois Pollution
Control Board
100 West Randolph Street
Suite 11-500
Chicago, Illinois 60601
Rachel
L. Doctors, Esq.
Illinois Environmental Protection Agency
1021 North Grand Avenue East
Post Office
Box 19276
Springfield,
Illinois 62794-9276
via electronic mail on
June 9, 2008.
United States
Mail, postage
Renee Cipriano, Esq.
Kathleen C. Bassi, Esq.
Joshua R. More, Esq.
Stephen J. Bonebrake, Esq.
Schiff Hardin, LLP
6600 Sears Tower
2 33 South Wacker Drive
Chicago, Illinois 60606-6473
/s/ N. LaDonna Driver
N. LaDonna Driver
IERG:001/R
Dockets/Fi1/r07-19/NOF-COS- Post Hrg Comments of IERG
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
BEFORE THE ILLINOIS POLLUTION CONTROL
BOARD
IN THE MATTER OF:
)
SECTION
27 PROPOSED RULES
FOR
) R07-19
NITROGEN OXIDE (NOx)
EMISSIONS
)
(Rulemaking
- Air)
FROM STATIONARY
RECIPROCATING
)
INTERNAL
COMBUSTION ENGINES AND )
TURBINES:
AMENDMENTS TO 35
ILL.
)
ADM. CODE PARTS 211 AND
217
)
COMMENTS OF THE
ILLINOIS ENVIRONMENTAL REGULATORY
GROUP
NOW
COMES the Illinois Environmental
Regulatory Group ("IERG"), by one of
its attorneys, N. LaDonna
Driver of HODGE DWYER ZEMAN, and submits the
following post-hearing
comments in the above-referenced matter:
IERG is a not-for-profit Illinois corporation
affiliated with the Illinois Chamber of
Commerce. IERG
is composed of 56 member companies
that are regulated by
governmental
agencies that promulgate,
administer or enforce environmental laws,
regulations, rules
or other policies. Following submission
of Pre-Filed Testimony of
Deirdre
K. Hirner, the Executive Director of IERG,
Ms. Hirner testified at the April 9,
2008 Hearing in this rulemaking.
IERG submits these comments following the hearings
on April 9, 2008
and May 7, 2008.
As discussed in Ms. Hirner's pre-filed
testimony, IERG has been working
extensively with
Illinois Environmental Protection Agency
("Illinois EPA") on this
Proposed Rule. IERG's most significant
concerns with the Proposed Rule have
ultimately been addressed,
primarily by adjusting applicability
and providing multiple
options
for compliance, as discussed further
below. IERG has not objected to the
emission concentration limits in
the Proposed Rule, nor the conclusions Illinois EPA
drew as to feasible
control technologies and costs thereof.
IERG's position in this regard
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
is based solely
on the Proposed Rule's compliance options
that provide alternatives to
compliance with the proposed emission
concentration limits.
Compliance Requirements
One compliance
option is the low use concept at proposed
Section 217.388(c).
Under that provision, sources can
limit the annual NOx emissions or annual operating
hours of engines
or turbines that would otherwise have to comply with
the Proposed
Rule's emission limits. This provision will
be particularly useful to members who
employ units that typically
operate only on an as-needed basis,
such that retrofitting these
types of
units with controls is not practical or
cost effective. See Pre-Filed Testimony of
Deirdre K. Hirner at p. 4.
Another key compliance alternative in the Proposed
Rule is that of averaging
plans at Section 217.390. This compliance
option allows sources to decide which
emission units are
the most effective to control, thus allowing over-compliant
units to
offset emissions
from units that are not effective to control.
Further, the Proposed Rule
allows averaging with
emission units affected by other Part 217 provisions.
See Pre-
Filed Testimony of Deirdre K. Hirner at p. 4.
One other important
component to the Proposed Rule
is the ability to utilize NOx
allowances
to compensate for infrequent circumstances
of noncompliance (see proposed
Section
217.392(c)) with emission concentration
limits, averaging plan requirements
and/or low usage designations.
This aspect of the Proposed Rule is particularly
useful
given the stringency of the limits in the Proposed Rule.
Such an approach is beneficial to
the environment as well, as
NOx emission allowances, in an amount equivalent
to the
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
compliance excursion, would
be deducted from the allowance pool. See
Pre-Filed
Testimony of
Deirdre K Hirner at p. 5.
There was some discussion
at the first hearing regarding the use of
NOx
allowances
in this context, specifically as to local controls
versus regional reductions.
See Transcript of April 9, 2008
Hearing at pp. 52-54. Note that the
Proposed Rule does
not rely on
NOx allowances for required reductions.
In other words, purchasing or
holding
NOx allowances is not a compliance
option under Subpart Q, as affected sources
must either meet emission
limits on a unit basis, average units together
to meet collective
emission
limits, or accept a low usage emission or operating
hour cap. Rather, Proposed
Section 217.293(c) simply provides
a mechanism to compensate for infrequent
difficulties with the
Proposed Rule's emission or operating
hour limits.
In addition, even where sources participate
in NOx trading as a primary
compliance tool,
USEPA has stated that such an approach
may satisfy NOx RACT
requirements. See Final Rule to Implement
the 8-Hour Ozone National Ambient Air
Quality Standard; Final
Rule, 70 Fed. Reg. 71656-71658 (November
29, 2005). See also
Phase
2
of
the Final Rule to Implement the 8-Hour Ozone
National Ambient Air Quality
Standard- Notice of Reconsideration, 72
Fed. Reg. 31730-31737 (June 8, 2007),
wherein USEPA stated
that the term "reasonable" in "RACT" "may
be construed to
allow consideration of the air quality impact
of required emissions reductions from
region-wide cap-and-trade
programs such as the CAIR
NOx trading program." 72 Fed.
Reg
at 31730. Thus, merely utilizing
NOx allowances, even regionally, as compensation
for infrequent exceedances
of the Proposed Rule's control
requirements, should not run
afoul of the
RACT concept.
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
Applicability
As discussed
in Ms. Hirner's pre-filed testimony,
one of IERG's early concerns
with the Proposed Rule's coverage
was that the original applicability provisions
would
have imposed the Proposed Rule's
requirements on an unknown universe of engines
and
turbines, as
the rating levels at proposed Section 217.386(a)
are lower than those for
permit exemptions at 35 Ill. Admin.
Code 201.146(i). See Pre-Filed Testimony of
Deirdre K Hirner
at p. 3. Illinois EPA's latest version (December
2007) of the Proposed
Rule lessens this concern by adding an
applicability criterion that the Proposed Rule will
only apply to major sources
of NOx in the ozone and PMz,5 nonattainment
areas. IERG
has long advocated this approach and it is supported
by NOx emissions modeling, as
discussed in Illinois
EPA's December 2007 submittal. See Pre-Filed Testimony of
Deirdre K.
Hirner at p. 3.
One issue that was discussed
in Ms. Hirner's pre-filed testimony, and at the April
9, 2008 hearing, is that of
the units that Illinois EPA has identified as potentially affected
by
the Proposed Rule. See Attachment A to Illinois
EPA's December 2007 submittal,
Amended Technical Support
Document for R07-19, at page 38. Ms. Hirner pointed out
that
IERG has nonattainment area members
with units that will be affected by this
Proposed Rule, yet
these units are not listed in Attachment A. See
Pre-Filed Testimony
of Deirdre
K. Hirner at p. 3 and Transcript of April 9, 2008
Hearing, at pp. 56 and 57.
Therefore, IERG does not believe that the
Amended Technical Support Document
provides correct
information regarding the applicability of the Proposed Rule. Id
During the April 9, 2008 hearing, the Board
requested that IERG provide some
information regarding
the member units that were not included in the Illinois EPA's
4
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
Technical Support Document. See
Transcript of April 9, 2008 Hearing at pp.
57 and 58.
Over the last
few weeks, IERG has been conferring with
its members who have major
sources of NOx in the nonattainment
areas. For those sources, IERG and its members
have been identifying
engines and turbines in current Title
V permits and construction
permits that would appear to
meet the Proposed Rule's applicability provisions.
Exhibit
1 to these comments
provides a preliminary listing of
IERG members who have major
sources of NOx in the nonattainment
areas, with engines and turbines that seem to be
potentially subject to
the Proposed Rule. Only the shaded entries in Exhibit 1 are
those
that were
identified by Illinois EPA as member units potentially
subject to the Proposed
Rule. The vast majority of the
units in Exhibit 1 were not identified by Illinois EPA as
potentially subject to the
Proposed Rule.
Note that units identified in member
permits as certain types of insignificant
activities are not
included in Exhibit 1. For example, emergency/standby
units that
qualify as insignificant activities under
35 Ill. Admin. Code 201.210(a)(16) would qualify
for the emergency/standby
exemption from the Proposed
Rule at Section 217.386(b)(1).
In addition,
units with capacity less than 150 hp, which
are insignificant activities under
35 Ill. Admin. Code 201.210(a)(15),
would not meet the capacity thresholds for
applicability under
Proposed Rule Section 217.386(a). Therefore, both of these types of
insignificant
activities, as well as emergency/standby
units with capacities greater than
the limits in Section 201.21 0(a)(1 6),
are not included in Exhibit
1 as units potentially
subject
to the Proposed Rule.
Where units
identified in Exhibit 1 currently have
federally enforceable limits,
those
limits were included in the unit descriptions.
In appropriate circumstances,
5
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
federally
enforceable limits may be
used by members to take advantage of the low
usage
designation, discussed
previously. IERG is not representing,
by including these limits,
any
determination by its members
as to which compliance option
will be chosen. Rather,
limit information is included
to demonstrate that in many cases,
units that were not
identified by
Illinois EPA as potentially applicable
to the Proposed Rule currently do not
qualify for low usage.
For those units
that do not have federally enforceable
limits, permitting resources
would be involved in securing such
limits if a low usage compliance option is selected
for those units. If low usage
is not chosen for those units, the members
would have to
ensure that
the units comply with the Proposed
Rule's emission limitations, which
may
involve retrofit technology.
Moreover, there are several units not
identified by Illinois
EPA as potentially
subject units, which have federally
enforceable limits exceeding the
low usage caps. In such cases, permitting
resources would be incurred to
reduce those
limits to take advantage of
a low usage designation, or the source
would have to ensure
that the
units comply with the Proposed Rule's
emission limits, which may involve
retrofit technology.
Units
that may take advantage of the
low usage option, while not being subject to
testing and monitoring
requirements under the Proposed
Rule, will have permitting
obligations,
inspection and maintenance, and
recordkeeping and reporting requirements.
Further, a restriction on operating
ability that is inherent in a federally
enforceable limit,
is, by itself, an impact
from the Proposed Rule. Therefore, these
units clearly are
impacted by
the Proposed Rule and should be
included in any analysis of the Proposed
Rule's ramifications to
the regulated community.
6
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
In addition,
it is the regulated source that will determine
whether a particular unit
s hould be classified
as a low usage unit. There
may be concerns as to operating capacity
that will prevent a unit from being
designated as low usage, even if its historical
emissions have been
relatively low. For such units, the source
will be obligated to take
steps, perhaps
with control technology,
to make these units compliant with the Proposed
Rule's emission
limit requirements. Therefore, such units
should also be addressed in
any
discussion of the impacts of the
Proposed Rule.
Permittiniz
In Ms.
Hirner's pre-filed testimony, IERG proposed
the addition of a new
subsection (e) to Section 217.386:
Where
a construction permit, for which the application was submitted
to
the
Agency prior to the adoption of this Subpart,
is issued that relies on
decreases in emissions of NOx from
existing emission units for purposes
of netting or emission offsets,
such NOx decreases shall remain creditable
notwithstanding
any requirements that may apply to
the existing emissions
units pursuant
to this Subpart.
See Pre-Filed Testimony of
Deirdre K. Hirner at pp. S and 6.
This provision
was also included in the
Illinois EPA's errata sheet, submitted as
Exhibit 2 at the May 7, 2008 Hearing.
Including this provision in the Proposed
Rule
would preserve NOx emission
reductions in qualifying netting or offset situations,
notwithstanding
any reductions that would be required
by the Proposed Rule, which
would provide certainty in past, current
and future permitting decisions. See Pre-Filed
Testimony of Deirdre
K. Hirner at pp. S and 6. IERG
urges the Board to include this
proposed provision at First
Notice.
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
Conclusion
IERG
has members that own and operate engines and turbines
that will
be
affected by this rulemaking
in different ways. IERG maintains that the supporting
documents
for the Proposed Rule are incomplete in identifying
the units that would
ially be impacted by the
Proposed Rule. Therefore, IERG questions whether the
supporting documents
for this rulemaking accurately reflect the economic
reasonableness/technical feasibility of the Proposed Rule. However, IERG believes
that
the Proposed Rule, as currently
situated, provides the necessary flexibility of compliance
options,
including the ability to utilize NOx allowances, for the diversity of covered units
and operating needs for those units.
These components of the Proposed Rule are vitally
important,
as is the current approach for applicability to major sources of NOx emissions
in the ozone and PM2.5 nonattainment areas.
IERG
appreciates this opportunity to provide comments on this Proposed
Rule.
Respectfully submitted,
By: /s/ N. LaDonna Driver
N. LaDonna Driver
Dated: June 9, 2008
N. LaDonna
Driver
HODGE
DWYER ZEMAN
3150 Roland Avenue
Post Office Box 5776
Springfield, Illinois
62705-5776
(217) 523-4900
IERG:001/R
Dockets/Fil/R07-19/NOx Rule IPCB Comments - Post
Hearing Comments
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
EXHIBIT 1
IERG Member Companies -
Major Sources of NOx
in Non-Attainment Areas with
Engines
or Turbines that are not Insignificant Activities
PRELIMINARY LISTING
Note: Shaded items
were identified by IEPA in the rulemaking documents.
P ermittee
Permit No.
Facility No.
Location
Description
Abbott Laboratories
96010010
097809AAD Abbott Park
Natural gas fired engine-driven
c hiller (1) Unit C14 - Annual
emissions not to exceed 12.19
ton/yr
Diesel generators (1) - The total
emissions from the Diesel Generator
AP14C shall not exceed 1.6 tpy;
D iesel generators (3) - The total
emissions from Diesel Generators
AP-5, AP-7, and K-14 shall not
exceed 31.50 tpy
M obile generators (2)
- The total
emissions from the emergency
generators shall not exceed 31.50 tpy
Diesel fired emergency generator for
AP 14C (1)
- Total
NOx
emissions
not to exceed 31.9 ton/yr
Abbott Laboratories
96010011 097125AAA
North Chicago Turbine - no limit
Mobile generators (2) - The total
emissions
from the emergency
generators shall not exceed 31.50 tpy
Ameren Energy
03080009 031438ABC Elgin
Turbines (4) - The total annual
Generating Company
emissions from the four affected
turbines shall not exceed 235.5 tpy-
total
Union Electric
95090017
119105AAA Venice
Turbine (1) - The annual emissions
(AmerenUE)
from the turbine shall not exceed
39.00 tpy
Turbine (1)
- There are no
specific
emission limitations for this unit
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
Permittee
Permit No. Facility No.
Location
Description
Caterpillar, Inc.
95120094
093807AAB Aurora
Turbines (2) - The total annual
emissions from the 2 turbines
(and
duct burners not subject to Subpart
Q) shall not exceed
139.85 tpy
Emergency generator
(1) - The total
annual emissions from the
emergency generator shall
not
exceed 25.75 tpy
Midwest Generation, LLC
95090256 043805AAM Eola
Turbines (12)
- There are no specific
(formerly Commonwealth
emission limitations for these units.
Edison)
Midi}egt Geýtarati
, LI,C
9 [94Q77 0 3 . 0ý4MJ
y I;o
'f urhitl
-(.J
1 } -
There
arG,tua apcci ý: -
(fomerly Cvmmo,tlavealth
-`ý
: . °
tr
s
_
e
s r?ri ýirrlitations
for ti1'ese imits.ý:
Corn Products
96010009 031012ABI Bedford Park Turbines (2)
- The total emissions
International, Inc.
shall not exceed 24.8 tpy
Dynegy Midwest
95090016 119813AAC Stallings
Turbines (4 - each with diesel startup
Generation, Inc.
engine) - There are
no
specific
emission limitations for these units.
Dynegy - Rocky
Road
00050067 089425AAC East
Dundee Turbines (4) - Annual emissions
Power
from all turbines shall not exceed
245.00 tpy.
IEIwacid Bne ,? iýL.C
99120064 197808AAG Elwood
Turbines (9)
( pominicýnj
.
ýT
,_
- The total
annual emissions from
turbines #1- #4 shall not exceed
IEPA listed this site, but
72.73 tpy
only
listed
3
units.
- The total annual emissions from
turbines #5 and #6 shall not exceed
217.56 tpy
- The total
annual emissions from
turbines #7 - #9 shall not exceed
326.34 tpy
( Exxon) Molzilmil
951213 sý.,:
1 9790 '' '.AA
7 oliet
.,
4
""
C orporgtiý-a roliCt
ý ý
.,.
Refinery
-
.ý;
ý'ý
N
E W
Midwest
Generation,
LLC 95090047 097190AAC Waukegan
Turbines (4) - The emissions from
each turbine shall be no more than 50
tons per ozone season.
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
Permittee
Permit No.
Facility No.
Location
Description
Midwest
Generation,
LLC 95090076 031600AIN
S. Pulaski Rd. Engines (12) -No limits
- Chicago
Turbines (12) - No limits
Midwest Generation,
LLP 95090081 031600AMI Cermak
Road Turbines (8) - The emissions from
- Chicago
each turbine shall be no more
than 50
tons per ozone season.
Midwest Generation, LLP 95090046 197809AAO
Joliet
Engines (5) - No limits
Morris Cogeneration, LLC 99110011 063800AAJ
Morris
Turbines (3)-No limits
'R
n'5
120046
,3065AI ,I
.;
Napecg3ile !
t4} Th'e ' nu l
NICOR Gas
95120042 031015ACL Bellwood
Engines (2) - No limits
Settler's Hill
95090054 089808AAA
Batavia
Turbines (2) - Emissions from
RDF/Midway Landfill
turbine
1 shall not exceed 174.3 tpy;
(Waste Management)
emissions from turbine 2R shall not
exceed 30.7 tpy.*
U.S. Steel Corporation
96030056 119813AAI
Granite City Emergency Generator-Emissions
from the emergency
generator shall
not exceed 19.9 tpy
Engines (2) - No limits
Waste Management, Inc.
95090055 031812AAQ
Northbrook
Turbines (3) - Emissions
from each
of the affected turbines shall not
exceed 29.8 (total 89.4 tpy)*
rr ýu
to Ma n agemerýt
9:ia90088
.
I630SOAAD
E. St. Louis
_
..
:tom each
111inois , Inc.
'
r,
sl nqt
all
ta1 ý 2'. ) pp)"'
'
,
Waste Management of
95090244 031600FHJ Calumet City Turbines
(3) - Emissions from the
Illinois, Inc. - CID
turbines shall
not
exceed
249.5
Landfill
ton/yr, total.
Waste Management of
95090111
043803AAI Naperville
Turbines (3) - Emissions from
Illinois,
Inc.
turbines 1 and 2 shall not exceed
6 1.4 tpy; emissions from turbine 3
shall not exceed 30.7 tpy.*
Woodland Recycling and 95090109 089813AAJ
Elgin
Engines (2) - Emissions from each
Disposal Facility (Waste
affected engine shall not exceed 35.9
M anagement)
tpy*
* These units will likely qualify
for the landfill gas control exemption at proposed section
217.386(b)(3).
IERG:001/Misc/NOx Emission
Limitations - IERG Member Companies5
3
Electronic Filing - Received, Clerk's Office, June 9, 2008
* * * * * PC #3 * * * * *
