BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF:

1

1

PROPOSED NEW CLEAN AIR

1

R06-26

INTERSTATE RULES (CAIR)

1

(Rulemaking

-

Air)

SOz, NOx ANNUAL

AND NOx

1

OZONE SEASON TRADING

1

PROGRAMS, 35 ILL. ADM. CODE 225,

)

SUBPARTS A, C, D AND E

)

NOTICE OF FILING

To:

Dorothy Gunn, Clerk

Illinois Pollution Control Board

James R. Thompson Center

Suite 11-500

100 West Randolph

Chicago, Illinois 60601

Persons included on the

ATTACHED SERVICE LIST

PLEASE TAKE NOTICE that we have today filed with the Office of the Clerk of the

Pollution Control Board the MOTION TO

AMEND PROPOSED RULE TO CORRECT

TYPOGRAPHICAL ERRORS, a copy of which is herewith served upon you.

IS/ Karl A. Karn

Karl A. Karg

Dated: February 16,2007

Karg A. Karg

Cary R. Perlman

Andrea

M. Hogan

LATHAM

&

WATKINS LLP

Sears Tower, Suite 5800

233 South Wacker Drive

Chicago, IL 60606

Telephone: (3 12) 876-7691

Fax: (312) 993-9767

karl.karg@lw.com

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF:

)

PROPOSED NEW CAIR SOz, CAIR NOx

ANNUAL AND CAIR NOx 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

)

ERRORS

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

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

pursuant to 35 Ill. Adm. Code 101.500, and state as follows:

I.

On January 5,2007, and

as revised in a filing of January 10,2007, the Illinois EPA and

MWGen submitted to the Illinois Pollution Control Board ("PCB") the proposed Subpart

F to the

proposed 35 Ill. Adm. Code 225, New CAR SO2, CAR NOxAnnual and CAIR NOx Ozone

Season Trading Programs, Control of Emissions from Large Combustion Sources, Subparts A,

C, D and E.

2.

Subsequent to that filing, Illinois EPA and MWGen discovered that two inadvertent

typographical errors are contained in the proposed Subpart

F.

3.

At Section 225.615(g)(3)(D), the end of that paragraph should read

". .

.applicable

requirements 'for' particulate matter or opacity" rather than

". .

.applicable requirements 'or'

particulate matter or opacity."

4.

At Section 225.625(a)(3), the paragraph should be changed to reflect a Control

Technology Control deadline of December 31, '2012' rather than the year '2013.' The deadline

of December 3 1,201 5 was previously agreed to by Illinois

EPA and MWGen, as embodied in

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

the December 10,2006 Memorandum of Understanding ("MOU") between Illinois EPA and

MWGen.

5.

The proposed changes will render the proposed rule consistent with the MOU as agreed

to by MWGen and the Illinois EPA.

6.

The proposed changes will avoid confusion in submitting an incorrect draft Subpart F for

First Notice.

7.

The proposed changes will not result in undue hardship or result in prejudice to any party

to this rulemaking.

8.

Illinois EPA and MWGen have included a revised copy of the Proposed Subpart F with

this Motion. The only changes made to the revised Subpart F attached hereto fiom the

January 10,2007 filing are those described in Paragraphs

3

and 4 of this Motion.

WHEREFORE, Illinois EPA and MWGen request that the Board amend the proposed

Subpart F to reflect the corrections noted above and that the Board replace the originally filed

Subpart F with the attached corrected version.

Dated: February 16,2007.

Respectfully submitted,

MIDWEST GENERATION EME LLC

ILLINOIS ENVIRONMENTAL PROTECTION

AGENCY

By:

Is/ Karl A. Karg

By:

Is/ John J. Kim

Karl A. Karg

John J. Kim

Karl A. Karg

Cary

R. Perlman

Andrea Hogan

Attorneys for Petitioners

Latham

&

Watkins, LLP

233 South Wacker Drive

5800 Sears Tower

Chicago, Illinois 60606

John J. Kim, Managing Attorney

Charles E. Matoesian, Assistant Counsel

Gina Roccaforte, Assistant Counsel

Division of Legal Counsel

Illinois Environmental Protection Agency

102 1 North Grand Avenue East

Post Office Box 19276

Springfield, Illinois 62794-9276

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

SUBPART F: COMBINED POLLUTANT STANDARDS

Section 225.600

Purpose

The purpose of this Subpart F is to allow an alternate means of compliance with the emissions

standards for mercury in Section 225.230(a) for Specified EGUs through permanent shut-down,

installation of ACI, and the application of pollution control technology for NO,, PM, and SO;!

emissions that also reduce mercury emissions

as a co-benefit and to establish permanent

emissions standards for those Specified EGUs. Unless otherwise provided for in this Subpart F,

owners and operators of those Specified EGUs are not excused from compliance with other

applicable requirements of Subparts

B, C, D, and E.

Section 225.605

Applicability

a)

As

an alternative to compliance with the emissions standards of Section

225.230(a), the owner or operator of specified EGUs in this Subpart F located at

Fisk, Crawford, Joliet, Powerton, Waukegan, and Will County power plants may

elect for all of those EGUs as a group to demonstrate compliance pursuant to this

Subpart F, which establishes control requirements and emissions standards for

NO,,

PM, SO;!, and mercury. For this purpose, ownership of a Specified EGU is

determined based on direct ownership, by holding a majority interest in a

company that owns the EGU or EGUs, or by the common ownership of the

company that owns the EGU, whether through a parent-subsidiary relationship,

as

a sister corporation, or as an affiliated corporation with the same parent

corporation, provided that the owner or operator has the right or authority to

submit a CAAPP application on behalf of the EGU.

b)

A Specified EGU is a coal-fired EGU listed in Appendix A, irrespective of any

subsequent changes in ownership of the EGU or power plant, changes in the

operator, unit designation, or name of unit.

c)

The owner or operator of each of the Specified EGUs electing to demonstrate

compliance with Section 225.230(a) pursuant to this Subpart must submit

an

application for a CAAPP permit modification to the Agency, as provided for in

Section 225.220, that includes the information specified in Section 225.610 that

clearly states the owner's or operator's election to demonstrate compliance with

Section 225.230(a) pursuant to this Subpart F.

d)

If an owner or operator of one or more Specified EGUs elects to demonstrate

compliance with Section 225.230(a) pursuant to this Subpart

F, then all Specified

EGUs owned or operated in Illinois by the owner or operator as of December 3

1,

2006,

as

defined in subsection (a) of this Section, are thereafter subject to the

standards and control requirements of this Subpart F. Such EGUs are referred to

as a Combined Pollutant Standard ("CPS") group.

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

e)

If an EGU is subject to the requirements of this Section, then the requirements

apply to all owners and operators of the EGU, and to the CAIR designated

representative for the EGU.

Section 225.610

Notice of Intent

The owner or operator of one or more Specified EGUs that intends to comply with Section

225.230(a) by means of this Subpart F must notify the Agency of its intention on or before

December 3 1,2007. The following information must accompany the notification:

a)

The identification of each EGU that will be complying with Section 225.230(a)

pursuant to this Subpart F, with evidence that the owner or operator has identified

all Specified EGUs that it owned or operated in Illinois as of December 3 1,2006,

and which commenced commercial operation on or before December

3

1,2004;

b)

If an EGU identified in subsection (a) of this Section is also owned or operated by

a person different than the owner or operator submitting the notice of intent, a

demonstration that the submitter has the right to commit the EGU or authorization

from the responsible official for the EGU submitting the application; and

c)

A summary of the current control devices installed and operating on each EGU

and identification of the additional control devices that will likely be needed for

each EGU to comply with emission control requirements of this Subpart F.

Section 225.61 5

Control Technology Requirements and Emissions Standards for Mercury

a)

Control Technology Requirements for Mercury.

1)

For each EGU in a CPS group other than an EGU that is addressed by

subsection (b) of this Section, the owner or operator of the EGU must

install, if not already installed, and properly operate and maintain, by the

dates set forth in subsection (a)(2) of this Section, ACI equipment

complying with subsections (g), (h), (i),

(j),

and (k) of this Section, as

applicable.

2)

By the following dates, for the EGUs listed below, which include hot and

cold side ESPs, the owner or operator must install, if not already installed,

begin operating ACI equipment or the Agency must be given written

notice that the EGU will be shutdown on or before the dates below:

A)

Fisk 19, Crawford 7, Crawford 8, Waukegan 7, and Waukegan 8

on or before July 1,2008; and

B)

Powerton 5,

,

Powerton 6,

,

Will County 3, Will County 4, Joliet 6,

Joliet 7, and Joliet 8 on or before July 1,2009.

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

b)

Notwithstanding subsection (a) of this Section, the following EGUs are not

required to install ACI equipment because they will be permanently shut-down, as

addressed by Section 225.630, by the date specified:

1)

EGUs that are required to permanently shut-down:

A)

On or before December

3

1,2007, Waukegan 6; and

B)

On or before December 3 1,201 0, Will County 1 and Will County

2.

2)

Any other Specified EGU that is permanently shut down by December 3 1,

2010.

c)

Beginning on January 1,2015, and continuing thereafter, and measured on a

rolling 12-month basis (the initial period is January 1,201 5, through December

3 1,201 5, and, then, for every 12-month period thereafter), each Specified EGU,

except Will County

3, shall achieve one of the following emissions standards:

1)

An emissions standard of 0.0080 lbs mercury1GWh gross electrical output;

or

2)

A minimum 90 percent reduction of input mercury.

d)

Beginning on January 1,2016, and continuing thereafter, Will County 3 shall

achieve the mercury emissions standards of subsection (c) of ths Section

measured on a rolling 12-month basis (the initial period is January 1,2016,

through December 3 1,2016, and, then, for every 12-month period thereafter).

e)

At any time prior to the dates required for compliance in subsections (c) and (d)

of this Section, the owner or operator of a Specified EGU, upon notice to the

Agency, may elect to comply with the emissions standards of subsection (c) of

this Section measured on a rolling 12-month basis for one or more EGUs. Once

an EGU is subject to the mercury emissions standards of subsection (c) of this

Section, it shall not be subject to the requirements of subsections (g), (h), (i),

0)

and (k) of this Section.

f)

Compliance with the mercury emissions standards or reduction requirement of

this Section must be calculated in accordance with Section 225.230(a) or (b).

g)

For each EGU for which injection of halogenated activated carbon is required by

subsection (a)(l) of this Section, the owner or operator of the EGU must inject

halogenated activated carbon in an optimum manner, which, except as provided in

subsection (h) of this Section, is defined as all of the following:

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

1)

The use of an injection system for effective absorption of mercury,

considering the configuration of the EGU and its ductwork;

2)

The injection of halogenated activated carbon manufactured by Alstom,

Norit, or Sorbent Technologies, or the injection of

any other halogenated

activated carbon or sorbent that the owner or operator of the EGU has

demonstrated to have similar or better effectiveness for control of mercury

emissions; and

3)

The injection of sorbent at the following minimum rates,

as applicable:

A)

For an EGU firing subbituminous coal, 5.0 lbs per million actual

cubic feet or, for any cyclone-fired EGU that will install a scrubber

and baghouse by December

3

1,2012, and which already meets an

emission rate of 0.020 lb mercuryIGWh gross electrical output or

at least 75 percent reduction of input mercury, 2.5 lbs million

actual cubic feet;

B)

For an EGU firing bituminous coal, 10.0 lbs per million actual

cubic feet or, for any cyclone-fired EGU that will install a scrubber

and baghouse by December 3 1,2012, and which already meets an

emission rate of 0.020 lb mercury1GWh gross electrical output or

at least 75 percent reduction of input mercury, 5.0 lbs million

actual cubic feet;

C)

For an EGU firing a blend of subbituminous and bituminous coal,

a rate that is the weighted average of the above rates, based on the

blend of coal being fired; or

D)

A rate or rates set lower by the Agency, in writing, than the rate

specified in any of subsections (g)(3)(A), (g)(3)(B), or (g)(3)(C) of

this Section on a unit-specific basis, provided that the owner or

operator of the EGU has demonstrated that such rate or rates are

needed so that carbon injection will not increase particulate matter

emissions or opacity so as to threaten noncompliance with

applicable requirements

er&

particulate matter or opacity.

4)

For purposes of subsection (g)(3) of this Section, the flue gas flow rate

must be determined for the point sorbent injection; provided that this flow

rate may be assumed to be identical to the stack flow rate if the gas

temperatures at the point of injection and the stack are normally within

100" F, or the flue gas flow rate may otherwise be calculated from the

stack flow rate, corrected for the difference in gas temperatures.

h)

The owner or operator of an EGU that seeks to operate an EGU with an activated

carbon injection rate or rates that are set on a unit-specific basis pursuant to

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

subsection (g)(3)(D) of this Section must submit an application to the Agency

proposing such rate or rates, and must meet the requirements of subsections (h)(l)

and (h)(2) of this Section, subject to the limitations of subsections (h)(3) and

(h)(4) of this Section:

1)

The application must be submitted as an application for a new or revised

federally enforceable operation permit for the EGU, and it must include a

summary of relevant mercury emissions data for the EGU, the unit-

specific injection rate or rates that are proposed, and detailed information

to support the proposed injection rate or rates; and

2)

This application must be submitted no later than the date that activated

carbon must first be injected. For example, the owner or operator of an

EGU that must inject activated carbon pursuant to subsection (a)(l) of this

Section must apply for unit-specific injection rate or rates by July 1,2008.

Thereafter, the owner or operator may supplement its application; and

3)

Any decision of the Agency denying a permit or granting a permit with

conditions that set a lower inject rate or rates may be appealed to the

Board pursuant to Section 39 of the Act.

4)

The owner or operator of an EGU may operate at the injection rate or rates

proposed in its application until a final decision is made on the application

including a final decision on any appeal to the Board.

i)

During any evaluation of the effectiveness of a listed sorbent, alternative sorbent,

or other technique to control mercury emissions, the owner or operator of an EGU

need not comply with the requirements of subsection (g) of this Section for any

system needed to carry out the evaluation, as further provided as follows:

1)

The owner or operator of the EGU must conduct the evaluation in

accordance with a formal evaluation program submitted to the Agency at

least 30 days prior to commencement of the evaluation;

2)

The duration and scope of the evaluation may not exceed the duration and

scope reasonably needed to complete the desired evaluation of the

alternative control techniques, as initially addressed by the owner or

operator in a support document submitted with the evaluation program;

and

3)

The owner or operator of the EGU must submit a report to the Agency no

later 30 days after the conclusion of the evaluation that describes the

evaluation conducted and which provides the results of the evaluation; and

4)

If the evaluation of the alternative control techniques shows less effective

control of mercury emissions from the EGU than was achieved with the

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

230

principal control techniques, the owner or operator of the EGU must

23 1

resume use of the principal control techniques. If the evaluation of the

232

alternative control technique shows comparable effectiveness to the

233

principal control technique, the owner or operator of the EGU may either

234

continue to use the alternative control technique in a manner that is at least

235

as effective

as the principal control technique or it may resume use of the

236

principal control techniques. If the evaluation of the control techniques

237

shows more effective control of mercury emissions than the control

238

technique, the owner or operator of the EGU must continue to use the

239

alternative control technique in a manner that is more effective than the

240

principal control techtuque, so long as it continues to be subject to this

24 1

Section 225.615.

242

243

j

In addition to complying with the applicable recordkeeping and monitoring

244

requirements in Sections 225.240 through 225.290, the owner or operator of an

245

EGU that elects to comply with Section 225.230(a) by means of this Subpart

F

246

must also comply with the following additional requirements:

247

248

1)

For the first 36 months that injection of sorbent is required, it must

249

maintain records of the usage of sorbent, the exhaust gas flow rate from

250

the EGU, and the sorbent feed rate, in pounds per million actual cubic feet

25 1

of exhaust gas at the injection point, on a weekly average;

252

253

2)

After the first 36 months that injection of sorbent is required, it must

254

monitor activated sorbent feed rate to the EGU, flue gas temperature at the

255

point sorbent injection, and exhaust gas flow rate from the EGU,

256

automatically recording this data and the sorbent carbon feed rate, in

257

pounds per million actual cubic feet of exhaust gas at the injection point,

258

on an hourly average; and

259

260

3)

If a blend of bituminous and subbituminous coal is fired

in the EGU, it

26

1

must keep records of the amount of each type of coal burned and the

262

required injection rate for injection of activated carbon, on a weekly basis.

263

264

k)

In addition to complying with the applicable reporting requirements in Sections

265

225.240 through 225.290, the owner or operator of an EGU that elects to comply

266

with Section 225.230(a) by means of this Subpart F must also submit quarterly

267

reports for the recordkeeping and monitoring conducted pursuant to subsection

('j)

268

of this Section.

269

270

Section 225.620

Emissions Standards for NOx and SO2

27 1

272

a)

Emissions Standards for NO, and Reporting Requirements.

273

274

1)

Beginning with calendar year 2012 and continuing in each calendar year

275

thereafter, the CPS group, which includes all Specified EGUs that have

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

not been permanently shut-down by December 3 1 before the applicable

calendar year, must comply with a CPS group average annual NOx

emissions rate of no more than 0.1 1 lbs/mmBtu.

2)

Beginning with ozone season control period 2012 and continuing in each

ozone season control period (May I through September 30) thereafter, the

CPS group, which includes all Specified EGUs that have not been

permanently shut-down by December 3 1 before the applicable ozone

season, must comply with a CPS group average ozone season NOx

emissions rate of no more than 0.11 lbs/rnmBtu.

3)

The owner or operator of the Specified EGUs in the CPS group must file

not later than one year after startup of any selective SNCR on such EGU, a

report with the Agency describing the NOx emissions reductions that the

SNCR has been able to achieve.

b)

Emissions Standards for SO2. Beginning in calendar year 2013 and continuing in

each calendar year thereafter, the CPS group must comply with the applicable

CPS group average annual SO2 emissions rate listed below:

year

lbs/mmB tu

c)

Compliance with the NO, and SOz emissions standards must be demonstrated in

accordance with Sections 225.310,225.410, and 225.5 10. The owner or operator

of the Specified EGUs must complete the demonstration of compliance pursuant

to Section 225.635(c) before March 1 of the following year for annual standards

and before November 30 of the particular year for ozone season control periods

(May 1 through September 30) standards, by which date a compliance report must

be submitted to the Agency.

d)

The CPS group average annual SO2 emission rate, annual NO, emission rate and

ozone season NO, emission rates shall be determined as follows:

n

n

ERaVg

=

C

or NOxi tons)/

X

(HIi)

i= 1

i= 1

Where:

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

322

E%Vg

-

-

average annual or ozone season emission

323

rate in lbs/mmBbtu of all EGUs in the CPS

324

group.

325

HIi

-

heat input for the annual or ozone control

326

period of each EGU, in rnmBtu.

327

SO2i

-

-

actual annual SO2 tons of each EGU in the

328

CPS group.

329

NOxi

-

-

actual annual or ozone season NOx tons of

330

each EGU in the CPS group.

33 1

n

-

-

number of EGUs that are in the CPS group

332

1

-

-

each EGU in the CPS group.

333

334

Section 225.625

Control Technology Requirements for NOx, SO2, and PM Emissions

335

336

a)

Control Technology Requirements for NOx and SO2.

337

1)

On before December 3 1,201 3, the owner or operator must either

338

permanently shutdown or install and have operational FGD equipment on

339

Waukegan 7:

340

34 1

2)

On before December 3 1, 2014, the owner or operator must either

342

permanently shutdown or install and have operational FGD equipment on

343

Waukegan 8;

344

345

3)

On before December 3 1,20132, the owner or operator must either

346

permanently shutdown or install and have operational FGD equipment on

347

Fisk 19:

348

349

4)

If Crawford 7 will be operated after December 3 1,201 8, and not

350

permanently shutdown by this date, the owner or operator must

35 1

352

A)

On or before December 3 1,201 5, install and have operational

353

SNCR or equipment capable of delivering essentially equivalent

354

NOx reductions on Crawford 7; and

355

356

B)

On or before December 3 1,201 8, install and have operational FGD

357

equipment on Crawford 7;

358

359

5)

If Crawford 8 will be operated after December 3 1,201 7 and not

360

permanently shutdown by this date, the owner or operator must:

361

362

A)

On or before December 3 1,2015, install and have operational

363

SNCR or equipment capable of delivering essentially equivalent

3 64

NOx emissions reductions on Crawford

8; and

365

366

B)

On or before December 3 1,2017, install and have operational FGD

367

equipment on Crawford 8.

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

368

369

370

b)

Other Control Technology Requirements for SO2. Owners or operators of

371

Specified EGUs must either permanently shutdown or install FGD equipment on

3 72

each Specified EGU (except Joliet 5), on or before December 3 1,201 8, unless an

373

earlier date is specified in subsection (a) of this Section.

374

375

C)

Control technology requirements for PM. The owner or operator of the two

376

Specified EGUs listed below that are equipped with a hot-side ESP must either

377

replace the hot-side ESPs with a cold-side ESP, install an appropriately designed

378

fabric filter, or permanently shut-down the EGU by the dates specified below.

379

Hot-side ESP means an ESP on a coal-fired boiler that is installed before the

380

boiler's air-preheater where the operating temperature is typically at least 550" F,

381

as distinguished from a cold-side ESP that is installed after the air pre-heater

382

where the operating temperature is typically no more than 350" F.

383

3 84

1)

Waukegan 7 on or before December 3 1,201 3; and

385

386

2)

Will County 3 on before December 3 1,20 15.

387

388

d)

Beginning on December 3 1,2008, and annually thereafter up to and including

389

December 3 1,2015, the owner or operator of the Fisk power plant must submit in

390

writing to the Agency a report on any technology or equipment designed to affect

391

air quality that has been considered or explored for the Fisk power plant in the

392

preceding 12 months. This report will not obligate the owner or operator to install

393

any equipment described in the report.

394

395

e)

Notwithstanding 35 Ill. Adm. Code 201.146(hhh), until an EGU has complied

396

with the applicable requirements of Sections 225.625(a), (b), and (c), the owner or

397

operator of the EGU must obtain a construction permit for any new or modified

398

air pollution control equipment that it proposes to construct for control of

399

emissions of mercury, NO,, PM, or SO2.

400

401

Section 225.630

Permanent Shut-Downs

402

403

a)

The owner or operator of the following EGUs must permanently shut-down the

404

EGU by the dates specified:

405

406

1)

Waukegan 6 on or before December 3 1,2007; and

407

408

2)

Will County 1 and Will County 2 on or before December 31,2010.

409

410

b)

No later than 8 months before the date that a Specified EGU will be permanently

41 1

shut-down, the owner or operator must submit a report to the Agency that

412

includes a description of the actions that have already been taken to allow the

413

shut-down of the EGU and a description of the future actions that must be

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

414

accomplished to complete the shut-down of the EGU, with the anticipated

415

schedule for those actions and the anticipated date of permanent shut-down of the

416

unit.

417

418

c)

No later than six months before a Specified EGU will be permanently shut-down,

419

the owner or operator shall apply for revisions to the operating permits for the

420

EGU to include provisions that terminate the authorization to operate the unit on

42 1

that date.

422

423

d)

If after applying for or obtaining a construction permit to install required control

424

equipment, the owner or operator decides to permanently shut-down a Specified

425

EGU rather than install the required control technology, the owner or operator

426

must immediately notify the Agency in writing and thereafter submit the

427

information required by subsections (b) and (c) of this Section.

428

429

e)

Failure to permanently shut-down a Specified EGU by the required date shall be

430

considered separate violations of the applicable emissions standards and control

43 1

technology requirements of this Subpart

F for NO,, PM, SOz, and mercury.

432

433

Section 225.635

Requirements for CAR SO2, CAIR NO,, and CAR NOx Ozone Season

434

Allowances

435

436

a)

The following requirements apply to the owner, the operator and the designated

437

representative with respect to CAIR SO2, CAR NO,, and CAIR NO, Ozone

43 8

Season allowances:

439

440

1)

The owner, operator, and CAR designated representative of Specified

44 1

EGUs in a CPS group is permitted to sell, trade, or transfer SO2 and NOx

442

emissions allowances of any vintage owned, allocated to, or earned by the

443

Specified EGUs (the "CPS Allowances") to its affiliated Homer City,

444

Pennsylvania generating station ("Homer City Station") for as long

as the

445

Homer City Station needs the CPS Allowances for compliance.

446

447

2)

When and if the Homer City Station no longer requires all of the CPS

448

Allowances, the owner, operator, or CAR designated representative of

449

Specified EGUs in CPS group may sell any and all remaining CPS

45 0

Allowances, without restriction, to any person or entity located anywhere,

45

1

except that the owner or operator may not directly sell, trade, or transfer

452

CPS Allowances to a CAIR NO, or CAIR SO2 unit located in Ohio,

453

Indiana, Illinois, Wisconsin, Michigan, Kentucky, Missouri, Iowa,

454

Minnesota, or Texas.

455

456

3)

In no event shall this subsection (a) require or be interpreted to require any

457

restriction whatsoever on the sale, trade, or exchange of the CPS

458

Allowances by persons or entities who have acquired the CPS Allowances

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

from the owner, operator, or CAIR designated representative of Specified

EGUs in a CPS group.

b)

The owner, operator, and CAIR designated representative of EGUs in a CPS

group comprised of is prohbited fi-om purchasing or using CAIR SO2, CAIR

NO,, and CAIR NO, Ozone Season allowances for the purposes of meeting the

SO2 and NOx emissions standards set forth in Section 225.620.

c)

Before March 1,201 0, and continuing each year thereafter, the CAR designated

representative of the EGUs in a CPS group must submit a report to the Agency

that demonstrates compliance with the requirements of this Section 225.635 for

the previous calendar year and ozone season control period (May 1 through

September

30), and includes identification of any CAIR allowances that have

been used for compliance with the CAIR trading programs as set forth in Subparts

C,

D, and E, and any CAIR allowances that were sold, gifted, used, exchanged, or

traded. A final report must be submitted to the Agency by August

3 1 of each

year, providing either verification that the actions described in the initial report

have taken place, or, if such actions have not taken place, an explanation of the

changes that have occurred and the reasons for such changes.

Section 225.640

Clean Air Act Requirements

The SO2 emissions rates set forth in ths Subpart

F shall be deemed to be best available retrofit

technology

("BART") under the Visibility Protection provisions of the CAA, 42 U.S.C. 7491,

reasonably available control technology ("RACT") and reasonably available control measures

("RACM) for achieving fine particulate matter ("PM2.5'7) requirements under NAAQS in effect

on the effective date of this Subpart F,

as required by the CAA, 42 U.S.C. 7502. The Agency

may use the SO2 and NO, emissions reductions required under this Subpart

F in developing

attainment demonstrations and demonstrating reasonable Eurther progress for PM2.5 and

8 hour

ozone standards, as required under the CAA. Furthermore, in developing rules, regulations, or

state implementation plans designed to comply with PM2.5 and

8 hour ozone NAAQS, the

Agency, taking into account all emission reduction efforts and other appropriate factors, will use

best efforts to seek SO;? and NO, emissions rates from other EGUs that are equal to or less than

the rates applicable to the CPS Group and will seek SO2 and NO, reductions from other sources

before seeking additional emissions reductions &om any EGU in the CPS Group.

Electronic Filing, Received, Clerk's Office, February 16, 2007

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225.Appendix A

Specified EGUs for Purposes of Subpart F (Midwest Generation's Coal-

Fired Boilers

as of July 1,2006)

Plant

Permit

Number

Crawford

03 1600AIN

Fisk

03 1600AMI

Joliet

197809AAO

Powerton

179801AAA

Waukegan

097 190AAC

Will County 19781 OAAK

Boiler

Permit designation

Unit 7 Boiler BLRl

Unit 8 Boiler BLR2

Unit 19 Boiler BLR19

Unit 7 Boiler BLR71

Unit 7 Boiler BLR72

Unit 8 Boiler BLR8 1

Unit 8 Boiler BLR82

Unit 6 Boiler BLR5

Unit 5 Boiler BLR 5 1

Unit 5 Boiler BLR 52

Unit 6 Boiler BLR 61

Unit 6 Boiler BLR 62

Unit 6 Boiler BLR17

Unit 7 Boiler BLR7

Unit 8 Boiler BLR8

Unit 1 Boiler BLRl

Unit 2 Boiler BLR2

Unit 3 Boiler BLR3

Unit 4 Boiler BLR4

Subpart F

Designation

Crawford 7

Crawford 8

Fisk 19

Joliet 7

Joliet 7

Joliet 8

Joliet 8

Joliet 6

Powerton 5

Powerton 5

Powerton 6

Powerton 6

Waukegan 6

Waukegan 7

Waukegan 8

Will County 1

Will County 2

Will County 3

Will County 4

Electronic Filing, Received, Clerk's Office, February 16, 2007

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CERTIFICATE OF SERVICE

I, the undersigned, certify that on this 16th day of February, 2007, I have served

electronically the attached Motion to Amend Proposed Rule to Correct Typographical Errors

upon the following persons:

Dorothy Gunn, Clerk

Illinois Pollution Control Board

James R. Thompson Center

Suite 1 1-500

100 West Randolph

Chicago, Illinois 60601

and

by first-class mail with postage thereon fully prepaid and affixed to the persons listed on the

ATTACHED SERVICE LIST.

IS/ Karl A. Kara

Karl A.

Karg

Karg A. Karg

LATHAM

&

WATKTNS LLP

Sears Tower, Suite 5800

233 South Wacker Drive

Chicago,

IL 60606

Telephone: (3 12) 876-7691

Fax: (3 12) 993-9767

karl.karg@lw.com

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

(R06-26)

John Knittle

Hearing Office

Illinois Pollution Control Board

James R. Thompson Center

100 W. Randolph

Suite 1 1-500

Chicago, Illinois 60601

Matthew J. Dunn, Division Chief

Office of the Illinois Attorney General

Environmental Bureau

188 West Randolph, 2oth Floor

Chicago, Illinois 60601

David Rieser

James T. Harrington

Jeremy R. Hojnicki

McGuire Woods LLP

77 West Wacker, Suite 4100

Chicago, Illinois 6060 1

Katherine D. Hodge

N. LaDonna Drive

HODGE DWYER ZEMAN

3150 Roland Avenue, P.O. Box 5776

Springfield, Illinois 62705-5776

Faith E. Bugel

Environmental Law and Policy Center

35 East Wacker Drive, Suite 1300

Chicago, Illinois 60601

Rachel Doctors, Assistant Counsel

John

J. Kim, Managing Attorney

Air Regulatory Unit

Division of Legal Counsel

Illinois Environmental Protection Agency

102 1 North Grand Avenue, East

P.O. Box 19276

Springfield, Illinois 62794-9276

Virginia Yang, Deputy Legal Counsel

Illinois Department of Natural Resources

One Natural Resources Way

Springfield, Illinois 62702- 127 1

Sheldon A. Zabel

Kathleen C. Bassi

Stephen J. Bonebrake

SCHIFF HARDIN, LLP

6600 Sears Tower

233 South Wacker Drive

Chicago, Illinois 60606

William A. Murray

City of Springfield, Office of Public Utilities

800 East Monroe, 4'" Floor, Municipal Building

Springfield, Illinois 62757-0001

Keith I. Harley

Chicago Legal Clinic, Inc.

205 West Monroe Street, 4th Floor

Chicago, Illinois 60606

Electronic Filing, Received, Clerk's Office, February 16, 2007

---

(RO6-26)

S. David Fanis

Manager, Environmental, Health and Safety

City Water Light

&

Power

201 East Lake Shore Drive

Springfield, Illinois 62757

Bruce Nilles

Sierra Club

122 West Washington Avenue, Suite 830

Madison, Wisconsin 53703

Bill S. Forcade

Katherine M. Rahill

Jenner

&

Block LLP

One IBM Plaza

Chicago, Illinois 6061 1

Sasha M. Reyes

Steven K. Murawski

Baker

&

McKenzie

One Prudential Plaza, Suite 3500

130 East Randolph Drive

Chicago,

IL 60601

Daniel D. McDevitt

General Counsel

Midwest Generation, LLC

440 South LaSalle Street, Suite 3500

Chicago, Illinois 60605

James H. Russell

Winston

&

Strawn LLP

35

W. Wacker Drive, 4oth Floor

Chicago, Illinois 60601

Electronic Filing, Received, Clerk's Office, February 16, 2007