BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF:

)

)

PROPOSED NEW CAIR SO

2

, CAIR NO

X

)

ANNUAL AND CAIR NO

X

OZONE SEASON

)

R06-26

TRADING PROGRAMS, 35 ILL. ADM.

)

(Rulemaking- Air)

CODE 225, CONTROL OF EMISSIONS

)

FROM LARGE COMBUSTION SOURCES,

)

SUBPARTS A, C, D and E

)

NOTICE

TO: Dorothy Gunn, Clerk

Illinois Pollution Control Board

James R. Thompson Center

100 West Randolph, Suite 11-500

Chicago, Illinois 60601-3218

SEE ATTACHED SERVICE LIST

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

Board a JOINT COMMENT, a copy of which is herewith served upon you.

ILLINOIS ENVIRONMENTAL

PROTECTION AGENCY

By: ______________________

John J. Kim

Managing Attorney

Air Regulatory Unit

Division of Legal Counsel

DATED: January 5, 2007

1021 North Grand Avenue East

P.O. Box 19276

Springfield, Illinois 62794-9276

THIS FILING IS SUBMITTED

217.782.5544

ON RECYCLED PAPER

217.782.9143 (TDD)

ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 5, 2007

* * * * * PC #9 * * * * *

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BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF:

)

)

PROPOSED NEW CAIR SO

2

, CAIR NO

X

)

ANNUAL AND CAIR NO

X

OZONE SEASON )

R06-26

TRADING PROGRAMS, 35 ILL. ADM.

)

(Rulemaking – Air)

CODE 225, CONTROL OF EMISSIONS

)

FROM LARGE COMBUSTION SOURCES

)

SUBPARTS A, C, D and E

)

JOINT COMMENT

NOW COME Midwest Generation EME, LLC (“MWGen”) and the Illinois

Environmental Protection Agency (“Illinois EPA”), by and through their respective attorneys,

and state as follows:

On May 30, 2006, the Illinois EPA submitted to the Illinois Pollution Control Board

(“PCB”) proposed 35 Ill. Adm. Code 225, New CAIR SO

2

, CAIR NO

X

Annual and CAIR NO

X

Ozone Season Trading Programs, Control of Emissions from Large Combustion Sources,

Subparts A, C, D and E. The purpose of the proposed regulations is to meet certain obligations

of the State of Illinois under the federal Clean Air Act (“CAA”), 42 U.S.C. § 7401

et seq

.;

specifically, to satisfy Illinois' obligation to submit a State Implementation Plan to address the

requirements of the Clean Air Interstate Rule (“CAIR”),

see

, 70

Fed. Reg.

25161 (May 12,

2005).

Pursuant to the schedule established by the PCB, evidentiary hearings on the proposed

regulations were held from October 10, 2006 through December 8, 2006. The Illinois EPA

presented witnesses that provided testimony and exhibits in support of the proposed regulations.

MWGen appeared and participated in these hearings.

ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 5, 2007

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On December 10, 2006, MWGen and Illinois EPA entered into a memorandum of

understanding (“MOU”) wherein the parties agreed to a timeline for MWGen to achieve deep

and sustained reductions in emissions of mercury, SO

2,

and NO

X

from MWGen’s coal-fired

Illinois electric generating units (“EGUs”). As a result of this MOU, and the hearings and

evidentiary testimony related to the above-referenced rulemaking, MWGen and Illinois EPA

state as follows:

1.

MWGen and Illinois EPA are asking the PCB to consider and include with the

above-referenced regulations a new section, 35 Ill. Adm. Code Section 225, titled Subpart F,

Combined Pollutant Standards, 35 Ill. Adm. Code Section 225.600

et. seq.

The proposed

Subpart F is attached hereto as Exhibit A and provides as follows:

•

Subpart F will establish an alternative means of compliance with the proposed

emissions standards for mercury in Subpart B, Section 225.230(a) and will establish

specific emissions levels for NO

X

, particulate matter (“PM”), and SO

2.

Reductions in

mercury, NO

X

, PM, and SO

2

emissions will be accomplished through a combination

of permanent shut-downs of EGUs, installation of activated halogenated carbon

injection systems for reduction of mercury (“ACI”), and the installation of pollution

control equipment for NO

X

, particulate matter (“PM”), and SO

2

emissions that will

also reduce mercury emissions as a co-benefit. EGUs identified for compliance with

the proposed Subpart F are referred to as a CPS Group.

•

The owner or operator of the CPS Group must begin installation of ACI

equipment on certain EGUs twelve months earlier than the dates required for

installation and operation of ACI under the recently adopted mercury standards in

Subpart B, Section 225. Specifically, ACI must be installed and operableby July 1,

2008 for certain EGUs, and by July 1, 2009 for certain other EGUs, as specified in

proposed Subpart F, Section 225.615(a).

•

By January 1, 2015, EGUs in the CPS Group (other than Will County 3, which

has a compliance deadline of Jan. 1, 2016) must achieve mercury emissions standards

2

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of either (a) 0.0080 lbs mercury/GWh gross electrical output; or (b) a minimum 90

percent reduction of input mercury.

•

By 2012, all operable EGUs in the CPS Group must achieve and maintain an

overall average annual NO

X

emission rate of no more than 0.11 lbs/mmBtu.

•

By 2013, all operable EGUs in the CPS Group must achieve an overall average

SO

2

emissions rate of no more than 0.44 lbs/mmBtu, and each year thereafter

continue to reduce the overall average SO

2

emissions from all operable EGUs to 0.11

lbs/mmBtu by 2019.

•

The owner or operator of the CPS Group must install and operate selective non-

catalytic NO

X

reduction equipment (“SNCR”) (or an equivalent technology) to reduce

NO

X

emissions and flue gas desulfurization (“FGD”) equipment to reduce SO

2

emissions at the EGUs specified in Section 225.625 of the proposed Subpart F, and

according to the schedule established therein.

2.

MWGen and the Illinois EPA anticipate that the installation and operation of the

pollution control equipment as contemplated by Subpart F will achieve significant reductions in

SO

2

, NO

X

, and mercury, beyond that required from existing regulations and thereby further

improve air quality. MWGen and Illinois EPA further state that the emissions controls designed

to reduce NO

X

, SO

2

, such as ACI, SNCRs, and FGDs, are also recognized to provide high levels

of mercury removal. Emissions reductions of NO

X

and SO

2

required by Subpart F are beyond

standards set forth in the Clean Air Interstate Rule (“CAIR”) and will further reduce ambient

levels of ozone and PM 2.5, and will provide significant benefits to public health and the

environment. EGUs complying with the proposed Subpart F must reduce NO

X

emissions to an

overall average rate of no more than 0.11 lbs/mmBtu by 2012, and SO

2

emissions to 0.28

lbs/mmBtu by 2015. Moreover, the use of the controls as specified in the proposed Subpart F

will achieve significant reductions in mercury emissions, consistent with Subpart B, Section

225.230(a).

3

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3.

If the PCB includes the proposed Subpart F in the Agency’s proposed CAIR

rulemaking, owners and operators of EGUs may elect to comply with the requirements of this

proposed Subpart F as specifically provided for therein. MWGen and the Illinois EPA agree that

compliance with the proposed Subpart F is both technically feasible and economically

reasonable, and that the level of mercury, NO

X

, and SO

2

reductions required in the proposed

Subpart F is expected to substantially contribute to the State’s efforts to achieve the CAA’s

National Ambient Air Quality Standards, and that any further reductions needed beyond those

proposed in Subpart F would need to come from other sources.

For all of the foregoing reasons, MWGen and the Illinois EPA request that the PCB

include the proposed Subpart F for consideration in and as a part of the CAIR rulemaking.

Dated January 5, 2007.

Respectfully submitted,

MIDWEST GENERATION EME LLC

ILLINOIS ENVIRONMENTAL PROTECTION

AGENCY

By: /s/ Karl A. Karg

By: /s/ John J. Kim

One of its Attorneys

One of its Attorneys

Karl A. Karg

John J. Kim, Managing Attorney

Cary R. Perlman

Rachel L. Doctors, Assistant Counsel

Andrea Hogan

Attorneys for Petitioners

Division of Legal Counsel

Latham & Watkins, LLP

Illinois Environmental Protection Agency

233 South Wacker Drive

1021 North Grand Avenue East

5800 Sears Tower

Post Office Box 19276

Chicago, Illinois 60606

Springfield, Illinois 62794-9276

4

ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, JANUARY 5, 2007

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