THIS FILING SUBMITTED ON RECYCLED PAPER
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
)
)
PROPOSED NEW 35 ILL. ADM. CODE
)
R06-025
225 CONTROL OF EMISSIONS FROM
)
(Rulemaking – Air)
LARGE COMBUSTION SOURCES
)
NOTICE OF FILING
TO:
Ms. Dorothy M. Gunn
Marie E. Tipsord, Esq.
Clerk of the Board
Illinois Pollution Control Board
Illinois Pollution Control Board
James R. Thompson Center
100 West Randolph Street
100 West Randolph Street
Suite 11-500
Suite 11-500
Chicago, Illinois 60601
Chicago, Illinois 60601
(VIA ELECTRONIC MAIL)
(VIA FIRST CLASS 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 a
LETTER FROM THE ILLINOIS
ENVIRONMENTAL REGULATORY GROUP TO THE DEPARTMENT OF
COMMERCE AND ECONOMIC OPPORTUNITY REQUESTING AN
ECONOMIC IMPACT STUDY, ON BEHALF OF THE ILLINOIS
ENVIRONMENTAL REGULATORY GROUP
, a copy of which is herewith served
upon you.
Respectfully submitted,
ILLINOIS ENVIRONMENTAL
REGULATORY GROUP,
By:
/s/ Katherine D. Hodge
One of Its Attorneys
Dated: May 19, 2006
Katherine D. Hodge
N. LaDonna Driver
HODGE DWYER ZEMAN
3150 Roland Avenue
Post Office Box 5776
Springfield, Illinois 62705-5776
(217) 523-4900
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 19, 2006
CERTIFICATE OF SERVICE
I, Katherine D. Hodge, the undersigned, hereby certify that I have served the
attached
LETTER FROM THE ILLINOIS ENVIRONMENTAL REGULATORY
GROUP TO THE DEPARTMENT OF COMMERCE AND ECONOMIC
OPPORTUNITY REQUESTING AN ECONOMIC IMPACT STUDY, ON
BEHALF OF THE ILLINOIS ENVIRONMENTAL REGULATORY GROUP
upon:
Ms. Dorothy M. Gunn
Clerk of the Board
Illinois Pollution Control Board
100 West Randolph Street
Suite 11-500
Chicago, Illinois 60601
via electronic mail on May 19, 2006; and upon:
Marie E Tipsord, Esq.
John J. Kim, Managing Attorney
Illinois Pollution Control Board
Charles E. Matoesian, Assistant Counsel
James R. Thompson Center
Gina Roccaforte, Assistant Counsel
100 West Randolph Street
Illinois Environmental Protection Agency
Suite 11-500
1021 North Grand Avenue East
Chicago, Illinois 60601
Post Office Box 19276
Springfield, Illinois 62794-9276
Christopher W. Newcomb
Bill S. Forcade, Esq.
Karaganis, White & Magel, Ltd.
Jenner & Block
414 North Orleans Street
One IBM Plaza
Suite 810
40th Floor
Chicago, Illinois 60610
Chicago, Illinois 60611
Sheldon A. Zabel, Esq.
Howard A. Learner, Esq.
Kathleen C. Bassi, Esq.
Faith E. Bugel, Esq.
Stephen J. Bonebrake, Esq.
Meleah Geertsma, Esq.
Joshua R. More, Esq.
Environmental Law and Policy Center
Glenna L. Gilbert, Esq.
35 East Wacker Drive
Schiff Hardin, LLP
Suite 1300
6600 Sears Tower
Chicago, Illinois 60601
233 South Wacker Drive
Chicago, Illinois 60606-6473
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 19, 2006
Keith I. Harley, Esq.
James T. Harrington, Esq.
Chicago Legal Clinic
David Rieser, Esq.
205 West Monroe Street
McGuire Woods LLP
4th Floor
77 W. Wacker Drive
Chicago, Illinois 60606
Suite 4100
Chicago, Illinois 60601
William A. Murray
S. David Farris
Regulatory Affairs Manager
Manager, Environmental, Health & Safety
Office of Public Utilities
Office of Public Utilities
800 East Monroe Street
201 East Lake Shore Drive
Springfield, Illinois 62757
Springfield, Illinois 62757
by depositing said documents in the United States Mail, postage prepaid, in Springfield,
Illinois, on May 19, 2006.
/s/ Katherine D. Hodge
Katherine D. Hodge
IERG:001/R Dockets/Fil/COS – R06-25 Request for Study
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 19, 2006
Director Jack Lavin
Department of Commerce and Economic Opportunity
620 East Adams Street, S-6
Springfield,
IL 62704
Illino
ed New 35 111. Admin. Code
225-, Control of Emission
Pollution Control Board's
Request for Economic Impact Study for:
Combustion
Sources (R06-25)
Dear Director Lavin:
generation, industry, commerce, manufacturing, agriculture, trade and transportation, which
are
regulated by governmental agencies that promulgate, administer
or enforce environmental laws,
regulations, rules or policies. IERG is an affiliate of
the Illinois State Chamber of Commerce
and has a significant stake in the development
of environmental regulations impacting Illinois'
industries. A list of
IERG's Member Companies is attached.
I am submitting this
letter
on
behalf of the Illinois Environmental Regulatory Group
G"), an organization
composed of fifty-three (53) member companies engaged in power
rd. to the Illinois Pollution Control Board's ("Board")
request for an
Economic Impact study for In the Matter of:
Proposed New 35 Ill. Admin. Code 225; Control of
issions from Large Combustion
Sources (R06-25) (the "Mercury Proposal"). The Board's
i°ulemaking currently pending before
specifically
includes economic data that will be provided by the impacted u
consumers, the Illinois economy, the
business community, and other affected industries, which
Commerce and Economic Opportunity conduct
an
economic
impact study on the impact that
Illinois Environmental Protection Agency's ("Agency")
proposal will have on utilities,
your office by letter dated May 10, 2006. IERG respectfully requests
that the Department of
st, pursuant
to Section 27(b) of the Illinois Environmental Protection Act, was
forwarded to
7 0 Fed. Reg. 28606 (May 18, 2005) (to be codified
at 40 C.F.
Performance for New and Existing Stationary Sources:
Electric
As you may know,
the Agency's proposal seeks to essentially reduce overall mercury
emissions from coal-fired
power plants by 90% by July 2009 and does not allow
emissions
trading.
The Mercury Proposal drastically deviates from the federal Clean
Air Mercury Rule
("CAMR") issued by the U. S. Environmental Protection Agency ("USEPA").See
Standards of
ing Units,
72, 75). CAMR
establishes limits on mercury emissions
from new and existing coal-fired power plants, and
creates a market-based
cap-and.-trade program that will reduce emissions
in two phases. The
first
phase,
effective in 2010, caps nationwide mercury emissions
at
38
tons, with reductions to
be achieved through co-benefits under USEPA's Clean
Air Interstate Rule
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 19, 2006
Mr.
Jack Lavin, Director
May 19, 2006
Page 2
second phase
is
due
in 2018, Id. When fully implemented, the rules will have reduced mercury
emissions from 48
to
15 tons a year, a nearly 70% reduction. The USEPA chose this two-phase
approach specifically because:
EPA recognized that the air pollution control retrofits that result
from
a program
to achieve highly cost-effective reductions are quite significant and cannot be
ediately installed. Such retrofits require a large pool of specialized labor
resources ... the availability of which will be a major limiting factor in the
amount and timing of reductions.
EPA also recognized that the regulated industry will need to secure large amounts
of capital to meet the control requirements while managing an already large debt
load, and is facing other large capital requirements to improve the transmission
system. Furthermore allowing pollution control retrofits to be
installed
over
time
enables the Industry to take advantage of
planned
outages
at power plants
(unplanned outages can lead to lost revenue and adversely impact consumers
to enable project management to learn from early installations how to deal with
some of the engineering challenges that some plants/facilities/units pose,
especially for the smaller units those often
present
space
limitations. In addition,
such phased installation of controls also minimized any pote
Id. at 28618.
s stability and reliability.
ptember 2004, the Agency issued its Fossil Fuel-Fired Power Plants Report
to the Illinois House and Senate Environment and Energy Committees ("Report"). The Report,
requested by the Illinois General Assembly pursuant
to
Section 9.10
of the Illinois
Environmental Protection
Act ("Act"), addresses several concerns including mercury emissions
from power plants
and the impact of such emissions on public health and the environment. In
addition, the Report summarizes the "potential costs that Illinois power generators could
-al of the proposed national multi-pollutant programs . . ." Id. at 60.
The
Illinois EPA believes that
independent, full, and complete economic assessments
onomic impacts in Illinois of the final LAIR
proposal, the Mercury Reduction Rule, the Carper and.reffords Bills, and any
others that surface in the next several months,
The impact to Illinois' coal jobs
and power industry jobs must be fully
understood.
Certainly,
the deregulated
electricity market that exists
in Illinois, the cost of impacts on generation and,
esses needs to be fully understood. Such
an only be properly performed once certainty exists at the federal
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 19, 2006
Mr. Jack Lavin, Director
May 19, 2006
Page
3
level. These cost analyses will be vital in fully
assessing the appropriate ti
and scope of additional emission reductions
from power plants in Illinois.
9
Id. at 70. If the Agency concluded that these more reasoned and
methodical federal proposals
needed to be evaluated for the economic impact they would
have on the people and business of
s, it is reasonable to believe that
it is also necessary for the Agency's Mercury Proposal to
be analyzed for its economic impact.
It is vital that the Board have a full and adequate record, which includes
an economic
impact study, when it determines whether to amend or
adopt the Mercury Proposal. Section 27
of the Act states, in relevant part:
In adopting any such new rule, the Board shall,
in its written opinion, make a
determination, based upon the evidence
in the public hearing record, including but
not limited to the economic impact
study, as to whether the proposed rule has any
adverse economic
impact on the people of the State of Illinois.
415 ILLS 5127(b)(2).
Accordingly, IERG requests that the DCEO conduct
an economic impact
study and consider the economic information that has been
developed by the Agency, affected
stries, and other participants
in
the
rulema
If you need
any additional information or if you have any que
contact me.
Very truly yours,
please feel free to
ILLINOIS ENVIRONMENTAL
REGULATORY
GROUP
Deirdre K. Himer
Executive Di
DK H: MTR: crs
I LRG:f)o I/Gorr/Draft Lavin Ltr re R6-25
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 19, 2006
IERG Member
Companies
May
2006
A DM
Abbott Laboratories
Ameren Services
Company
Aventine Renewable Energy,
Inc.
B P Products North America
Inc.
Black Beauty Coal
Bunge
North America, Inc.
Burlington Northern and
Santa Fe Railway
Buzzi Unicem USA,
Inc.
Cabot
Corp.
Calpine Morris Operations
Caterpillar
Inc.
CITGO
Petroleum Corporation
Cognis Corporation
Commonwealth Edison
Company (Exelon)
Conoco Phillips
Company
Corn
Products International, Inc.
DaimlerChrysler
Deere & Company
Dominion Kincaid Generation, L. L. C.
Dow Chemical Company
Dynegy, Inc.
Electric Energy
Equistar Chemical,
L P
ExxonMobil
Corpor
Flint Hills Resources
G E Plastics
G.
E. Company
General Mills
Huntsman
INEOS
Styrenics
Kinder Morgan Inc.
Lonza Inc.
Marathon
Ashland Petroleum-
L L C
Midwest Generation
E M E, L L C
Nestle U S
A
Nicor
Gas Company
Noveon, Inc.
Olin Corporation
ONDEO
Nalco Company
Peoples Energy
S & C Electric
Company
Solae, Inc.
Southern
Illinois Power Coopera
Soyland
Power Cooperative
Inc.
Springfield C W L
P
Stepan Company
Sterling Steel
LLC
Tate & Lyle
Teepak L L C
The Sherwin-Williams
Company
US Steel, Granite
City
Waste
Management
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 19, 2006
