BEFORE TILE
    ILLINOIS POLLUTION CONTROL BOARD
    IN THE MATTER OF:
    PROPOSED NEW 35 ILL. ADM. CODE
    225 CONTROL OF EMISSIONS
    FROM
    LARGE COMBUSTION SOURCES
    R06-025
    (Rulemaking -- Air)
    )
    )
    )
    NOTICE OF FILING
    TO: Ms. Dorothy
    M. Gunn
    Clerk of
    the Board
    Illinois Pollution Control Board
    100 West Randolph Street
    Suite I1-500
    C hicago, Illinois 60601
    (VIA ELECTRONIC,
    MAIL)
    Marie E. Tipsord, Esq.
    Illinois Pollution Control
    Board
    James R.
    Thompson Center
    100 West Randolph Street
    Suite 11-500
    Chicago, Illinois 60601
    (VIA FIRST CLASS
    MAIL)
    (SEE PERSONS ON
    ATTACHED SERVICE LIS
    the I
    MO
    at I have
    today filed with the Office of the Clerk of
    and a
    RESPONSE IN SUPPORT OF UTILITY
    PROTEcTIO
    VIRONMENTAL
    THE ILLINOIS
    DERATION OF
    ITS
    Regulatory
    Group, copies of wh
    b ehalf of
    th served upon
    d ,
    ILLINOIS ENVIRONMENTAL
    REGULATORY GROUP,
    By: /s/ N. LaDonna Driver
    One of Its Attorney
    Post Office Box 577
    S pringfield, Illinois 62705-5776
    (217) 523-4900
    THIS
    FILING SUBMITTED ON
    ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MARCH 29, 2006

    OF SERVICE
    aDonna D
    gned,
    hereby certify that I have served the
    attached RESPONSE
    IN SUPPORT OF UTILITY MOTIONS
    AND
    OBJECTION
    TO THE ILLINO
    ENVIRONMENTAL PROTECTION AGENCY'S
    USE OF
    SECTION
    28.5 OF THE ILLINOIS ENVIRONMENTAL.
    PROTECTION ACT
    FOR CONS
    pon:
    Ms. Dorothy M. Gunn
    Clerk of the
    Board
    tution Control Board
    100 West Rando
    Suite 11-500
    C hicago, Illinois 60601
    E RCURY PROPOSAL, and AFFIDAVIT OF
    via electronic
    mail on March 29, 2006; and upon:
    R. Thompson
    Cen
    100 West
    Randolph Street
    1-500
    60601
    John J. Kim, Managing Attorney
    Charles E. Matoesian, Assistant
    Counsel
    Gina Roecaforte,
    Assistant Counsel
    Illinois Environmental
    Protection Agency
    1 021 North Grand Avenue
    Post Office Box 19276
    nois 62794-9276
    Christopher
    W. Newcomb
    Karaganis, White &
    414 North Orleans Street
    Suite 810
    Chicago,
    Illinois
    S heldon A. Zabel, Esq.
    K athleen C. Bassi,
    hen J. Bonebrake,
    Esq.
    hua R. More, Esq.
    Glenna 11. Gi lbert,
    Schiff Hardin, LLP
    6600 Sears Tower
    233 South
    Wacker rive
    B ill S. Forcade,
    Jemi.er
    & Block
    One IBM Plaza
    40th Floor
    Chicago, Illinois 60611
    Howard A. Learner,
    Faith. E. Bugel, Esq.
    Meleah Geertsma, Esq.
    Chicago, Illinois 60601
    Policy Center
    Chicago, Illinois 60606-6473
    ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MARCH 29, 2006

    . Harley, Esq.
    Chicago Legal Clinic
    205 West Monroe
    Street
    4th Floor
    Chicago, Illinois 60606
    William
    A. Murray
    Regulatory Affairs Manager
    Office of Public Utilities
    800 East Monroe Street
    Springfield, Illinois
    62757
    James 'T. Harrington, Esq.
    David Rieser, Esq.
    McGuire Woods LLP
    77
    W. Wacker Drive
    Suite 4100
    Chicago, Illinois 60601
    S. David
    Farris
    Manager,
    Environmental, Health & Safety
    Office of Public Utilities
    201 East Lake Shore Drive
    Springfield, Illinois 62757
    by depositing said documents in the United States
    Mail, postage prepaid, in Springfield,
    Illinois, on March 29, 2006.
    /s/ N. LaDonna Driver
    N. LaDonna Driver
    :001/R
    Dockets/Fil/COS - ROCS-25 Response in Support of Utilities Motion to IEPA's Proposal -
    KDH NLD
    ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MARCH 29, 2006

    BEFORE
    THE ILLINOIS POLLUTION
    CONTROL, BOARD
    IN THE
    MATTER OF:
    PROPOSED NEW 35
    ILL. ADM. CODE
    225 CONTROL OF
    EMISSIONS FROM
    LARGE COMBUSTION
    SOURCES
    R 06-02 5
    )
    (Rulemaking
    ILLINOIS
    ENVIRONMENTAL REGULATORY
    GROUP'S
    RESPONSE IN SUPPORT OF UTILITY
    MOTIONS AND
    OBJECTION
    TO THE ILLINOIS
    ENVIRONMENTAL PROTECTION
    AGENCY'S
    USE OF SECTION 28.5
    OF THE ILLINOIS ENVIRONMENTAL
    PROTECTION ACT FOR CONSIDERATION
    OF ITS MERCURY
    PROPOSAL
    NOW COMES
    the Illinois Environmental
    Regulatory Group ("IERG"),
    by
    through its attorneys,
    DWYER ZEMAN, anal submits its
    Response in Support
    of Utility Motions and Objection
    to the Illinois Environmental
    Protec
    of Section
    28.5 of the Illinois Environmental
    P
    matter:
    Agency's
    Use
    ion Act in the above-captioned
    r
    18, 2005, the
    United States Environmental Protection
    Agency's
    ("USEPA") Clean Air
    Mercury Rule ("CAMR")
    was published as a final rule in the
    Federal
    Register. Standards of Performance
    for New, and Existing
    Stationary Sources:
    Electric Utility Steam Generating
    Units, 70 Fed. Reg. 28606 (May
    18, 2005) (to be
    codified at 40 C.F.R.
    pts. 60, 72, 75). CAMR
    establishes requirements for em
    mercury from coal-fired electric
    utility steam generating units. As set
    forth more fully
    herein, CAMR requires
    that Illinois submit a plan
    to USEPA that demonstrates how
    Illinois' mercury reduction strategy
    will meet the assigned statewide
    mercury emission
    budget established in CAMR.
    ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MARCH 29, 2006

    On March 14, 2006,
    the Illinois Environmental Protection Agency ("Illinois
    EPA") filed
    its
    proposed
    mercury regulations with the
    Illinois Pollution Control Board
    ("Board"). See In the Matter of.:
    Proposed Nekv 35 Ill. Adn2. Code 725 Control of
    Emissions
    fi,on2 Large Combustion Sources, PCB No. R06-25 (March
    14, 2006)
    ("Proposed
    Mercury Rule"). The Illinois EPA submitted
    its proposal to the Board as a
    fast-track rulemaking pursuant
    to Section 28.5 of the Illinois Environmental
    Protection
    Act ("Act"),
    which allows for the expedited review of regulations
    that are "proposed by
    ed to be adopted
    by the State under the Clean Air Act as amended
    by the Clean
    Air Act Amendments of 1990 (CAAA)." 415 ILCS 5/28.5(x).
    Only rules
    required
    to be. adopted by the State under
    the Clean
    ct and the 1990 Amendments
    ("CAAA") can be fast-tracked
    under Section 28.5 of the Act.
    On March
    15, 2006, several utilities filed motions
    and an objection to the use of
    Section 28.5 fast-track procedures
    as proposed by Illinois EPA in this proceeding.
    I
    to Use o f FS
    8 .5 Fast Track Procedures for Consideration
    of Mercury
    Proposal (filed by Arneren Energy Generat
    Company, AmerenEnergy Resources
    Generating Company
    and Electric Energy Incorporated), R06-25
    rch 15, 2006);
    ants Dyne gy 1llidwest Generation and SIPC 's Motion
    to Reject Regulatory
    Filing, R06-25
    ch 15, 2006);
    and Dominion Kincaid, Inc. 's Motion, for the Board
    to
    Reject Illinois
    Environmental Protection Agency's Proposal to Add Mercury Rules
    Under
    Section 28.5 Fast-Track Rule Making Procedures,
    -25
    IERG supports
    the motions and objection filed by the
    matter
    and
    rates thei
    arch 15, 2006).
    IERG is an affiliate of
    the Illinois State
    Chamber of Commerce, and
    is a not-for-profit Illinois corporation comprised of 57
    2
    ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MARCH 29, 2006

    member companies el
    NTS OF SECTION 28.5 OF THE ACT
    agriculture, trade,
    and transportation, which are regulated by governmental
    agencies that
    promulgate, administer or enforce environmental
    laws, regulations, rules or policies.
    IERG's members
    therefore have a significant stake in how environmental
    requirements
    are
    established. IERC sets forth herein the reasons
    for its concern with the Illinois EPA's
    approach in this proceeding,
    with respect the procedures of Section
    28.5 of the Act.
    IERC urges the
    Board to find that the Proposed Mercury
    Rule does not meet the Section
    28.5 requirements for a fast-track proceeding.
    II. THE PROPOSED
    MERCURY RULE DOES NOT COMPLY WITH THE
    The Act
    (c)
    power generation, industry, commerce, manufacturing,
    rovides for fast-track rulemakings
    pursuant to Section 28.5, which
    part:
    Agency and required
    to be adopted by the State under the Clean
    amended by
    the Clean Air Act Amendments of 1990 (CAAA).
    This Section shall apply solely
    to the adoption of rules proposed by the
    For
    purposes of this Section, a "fast-track" rulemaking
    proceeding is a
    proceeding to promulgate a
    rule that the CAAA requires to be adopted.
    of this Section,
    "requires to be adopted" refers only to those
    ions or parts
    of regulations for which the United States
    Environmental
    Protection Agency is empowered to impose sanctions
    r failure to adopt such rules... .
    415 ILLS 5/28.5.
    As provided above,
    the Board only has authority under Se
    to fast-track
    rules that are required to be adopted by the State
    under the CAAA. CAMR was adopted
    under Section 11.1 of the Clean
    Air Act, which deals with "standards of performance."
    70 Fed. Reg. at 28607. The preamble to the CAMR provides
    a detailed discussion of
    how USEPA determined CAMR with respect
    to the relevant provisions of Section 111 of
    ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MARCH 29, 2006

    the Clean Air Act. Specifically,
    USEPA stated that
    it was addressing new sources
    under
    Section
    111 (b) (which requirements are effective
    upon promulgation) and existing
    sources under Section 111(d).
    70 Fed. Reg. at 28607. Section
    111 of the Clean Air
    Act
    is very clear on
    the State's roles and responsibilities
    for standards for new and existing
    sources:
    (c) State implementation
    and enforcement of standards
    of performance
    (1) Each State tnay develop
    and submit to the Administrator
    a
    procedure
    for implementing and enforcing
    standards of
    performance
    for new sources located
    in such State... .
    (d) Standards of performance
    for existing sources;
    remaining
    useful
    life of source
    The Administrator
    shall prescribe
    regulations which shall
    establish
    a procedure similar to that
    provided by section
    7410 of this title [State
    implementation plans for nat
    nd secondary
    ambient air quality standards]
    under
    which each State
    shall submit to the Administrator
    a plan
    ablishes standards of performance
    for any
    existing
    source ....and (B) provides
    for the implementation
    of such standards
    of performance... .
    authority
    42 U.S.C. ยง 741 l(c) and
    (
    to prescribe a plan for a State
    in cases where the
    State fails to submit
    a satisfactory plan as he would
    have under
    section 7410(c) of this title in the
    case of
    failure to
    submit an implementation plan...
    .
    (Emphasis and explanation
    added.)
    thy that the standards promulgated
    for new sources under Section
    ction
    Ll 1(c), maM be the subject of a State
    procedure for
    tion anal enforcement, but are otherwise
    effective on promulgat
    USEPA.
    Second, USEPA has established,
    in CAMR, the procedure referenced
    in Section
    ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MARCH 29, 2006

    I I (d) for States to submit a plan
    for implementation and enforcement of existing
    source
    standards, that is similar
    to a state implementation plan ("SIP'') for national
    ambient air
    quality standards ("NAAQS"). Section 111
    (d) is clear that the existing source standards
    are not part of, nor are they
    required to be included in, a SIP for NAAQS. Equally
    noteworthy
    is Section I I I (d)(2)(A)'s clear provision of
    the consequences for a State's
    failure to provide the plan
    called for by Section I 11(d)
    s
    USEPA will prescribe
    a plan for
    the State. Thus, the only
    thing that can happen in such a circumstance
    is the imposition
    of a federal plan. Indeed, USEPA stated,
    in its preamble to CAMR, that:
    State fails
    to submit a State plan as proposed to be required in the final
    1 I I (d)(2)(A).
    EPA proposes today's model
    rule as that Federal plan.
    , EPA will prescribe a Federal plan for that State,
    under CA
    70 Fed. Reg. at 28632.
    As set forth above,
    Section 28.5 only applies to
    CAAA to be adopte
    1
    are required by the
    e rules or parts of rules for which sat
    can
    be imposed for failure
    to adopt. The utilities have meticulously provided clear
    and
    arguments that any potential imposition of
    a federal plan in this instance is
    not a "sanction." The Clean
    Air Act itself states plainly that the only consequence
    for a
    rovide
    a plan under Section 111 (d) is imposition of
    a federal plan.
    erefore supports the utilities' argument
    that the Illinois EPA's proposed
    not meet
    the Act's requirements for a Section 28.5 rulemaking.
    As
    discussed above, and in detail in the utilities'
    motions and objection, the
    Illinois EPA's proposal is not
    a rule, as filed, that is required by the CAAA. Even
    for the sake
    of ar meat, that there are parts of the
    Proposed Mercury Rule
    that are required by the CAAA, there are
    certainly parts of the Proposed Mercury Rule
    5
    ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MARCH 29, 2006

    that are outside of CAMR and
    are not required by the CAAA.
    The Illinois
    EPA's
    Statement of Reasons
    goes to great length in challenging
    CAMR under Section 111 of
    the
    Clean
    Air Act, and distan
    Reasons at 10-17.
    Again,
    at there are any parts of
    the Proposed Mercury
    Rule that are
    required by the CAAA, the only
    authority given to the Board under
    Section
    28.5, with respect to the non-required
    parts of the Proposed Mercury
    Rule, is to split the
    non-required parts into
    a separate docket. Sec 28.5(1) provides:
    The Board shall adopt rules
    in the fast-track rulemaking docket
    under the
    requirements of this Section
    that the CAAA requires to be
    adop
    may consider
    a non-required rule in a second docket
    that shall proceed
    under Title
    VII of this Act.
    415 ILCS 5/28.5(j).
    roposed Mercury Rule from CAMR.
    Statement of
    ssembly, through consultation
    with the Illinois EPA, the
    ic, and
    the regulated cotrimunity, chose
    to limit fast-track proceedings to rules
    required to be adopted by the CAAA
    where sanctions can be imposed
    for failure to adopt
    such rules. 415
    ILCS 5/28.5. This is not a limitation
    that should be ignored, as the
    Illinois EPA seemingly does in its Proposed
    Mercury Rule. Without such
    a limitation,
    tracke
    ould allow any
    proposed regulations related to
    the Clean Air Act to be fast-
    bypassing the deliberat
    in the development of this section
    o
    this lirnitat
    Ot
    e proceedings
    of a rulemaking. IERG participated
    Act and has always maintained
    the position that
    lean
    Air Act regulations would be su
    the fast-track timeframe, providing less
    meaningful opportunities for public comment
    on
    gulations.
    P lease see attached Affidavit
    of Deirdre K. Himer.
    6
    ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MARCH 29, 2006

    IERG
    has also advocated
    the proper use of accelerated
    rulemaking procedures
    in
    other air rulemaking proceedings.
    In In the Matter qf-
    RACT Deficiencies -
    Amendments
    to 35 Ill. Adn2. Code
    Parts 211 and 215,
    R89-16 (Feb. 8, 1999), the
    Illinois EPA sought
    to amend
    Parts 211 and 215 of
    the Board's air regulations
    under the federally required
    rules procedures of Section
    28.2. The Board
    severed the rulem ng
    into two dockets
    because
    it concluded that sections
    of the proposed rulemaking
    were not federally
    required. The Board placed
    the non-federally required
    provisions in subdocket
    B "to
    address these proposed
    amendments under
    Section 28 of the
    Act." Id. at 1. The Board
    explained
    that it was "persuaded
    by the thoro
    the "lack of analysis
    alysis" of the Industry Group
    and by
    ney's response"
    when it found that portions
    of the
    d regulations
    were not "required."
    Id at 8.
    Although the
    1LICZ' Deficiencies rulemaking
    was not filed pursuant
    to Section
    28.5, but rather
    pursuant to the federally
    required rules procedures
    of Section 28.2,
    the
    Board
    must be careful of
    its statutory rulemaking
    authority in this proceeding,
    as it
    responsibility
    to propose
    Deficiencies proceeding.
    It is certainly the
    Illinois EPA's
    e
    consistent with statutory
    requirements. Yet,
    as set
    Forth above, and in the
    utilities' motions and objection,
    the Proposed Mercury
    Rule
    ply does
    not meet the statutory parameters
    for a Section 28.5
    fast-track
    The oard must so find and
    ensure that any action
    to
    promulgate
    the Proposed Mercury
    Rule does not occur
    outside the Board's rulem
    CONCLUSION
    IERG supports
    the motions and objet
    hority.
    opposition
    to
    use of Section
    28.5 fast-track procedures
    for the Proposed Mercury
    Rule. This
    7
    ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MARCH 29, 2006

    proceeding involves no regulations
    that are required to be adopted tinder the
    Clean Air
    Act, as amended. The only
    consequence for any failure by Illinois
    to provide a plan
    implementing
    CAMR's requirements is the
    federal imposition of CAMR's model
    rule.
    Thus, there are no sanctions
    at issue here that would allow the use of fast-track
    procedures under
    Section 28.5. The Board should
    not proceed on this rulemaking beyond
    bounds o statutory authority.
    Therefore, IERG maintains that the
    Section. 28.5
    fast-track procedures
    may not be used for the Proposed Mercury
    Rule.
    Respectfully submitted,
    ILLINOIS ENVIRONMENTAL
    REGULATORY
    GROUP,
    Dated: March
    29, 2006
    ine D. Hodge
    N. LaDonna Dri
    D
    3150 Rolan
    ce Box 5776
    Springfield, Illinois 62705-5776
    (217) 523-4900
    ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MARCH 29, 2006

    1N THE MATTER OF:
    )
    PROPOSED NEW 35 ILL.
    ADM. CODE ) R06-025
    225 CONTROL
    OF EMISSIONS FROM )
    LARGE COMBUSTION
    SOURCES
    )
    STATE OF ILLINOIS
    SS
    COUNTY
    OF SANGAMON )
    Air)
    Deirdre K. Hirner, being
    first duly sworn on oath, affirms that the facts
    set forth in the
    Illinois Environmental
    Regulatory Group's Response
    in Support of Utility Motions and
    Objection to the Illinois Environmental
    Protection Agency
    ection
    of the Illinois
    ry Proposal, are true and correct.
    i;xecut1%
    12
    Illinois Environmental
    Regulatory Group
    3150
    Roland Avenue
    627 03
    S ubscribed and sworn
    to before me
    this
    ""day of March 2006.
    ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MARCH 29, 2006

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