BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

NOTICE

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF:

)

R06-25

PROPOSED NEW 35 ILL. ADM. CODE 225

)

(Rulemaking – Air)

CONTROL OF EMISSIONS FROM

)

LARGE COMBUSTION SOURCES (MERCURY) )

NOTICE

TO:

Dorothy Gunn

Clerk

Illinois Pollution Control Board

James R. Thompson Center

100 West Randolph St., Suite 11-500

Chicago, IL 60601-3218

SEE ATTACHED SERVICE LIST

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

Illinois Pollution Control Board the

CORRECTED JOINT STATEMENT OF THE ILLINOIS

ENVIRONMENTAL PROTECTION AGENCY AND DYNEGY MIDWEST GENERATION,

INC., a copy of which is herewith served upon you.

ILLINOIS ENVIRONMENTAL

PROTECTION AGENCY

By: ______________________

Gina Roccaforte

Assistant Counsel

Division of Legal Counsel

DATED: August 23, 2006

1021 North Grand Avenue East

P. O. Box 19276

Springfield, IL 62794-9276

THIS FILING IS SUBMITTED

217/782-5544

ON RECYCLED PAPER

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BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF:

PROPOSED NEW 35 ILL.ADM.CODE PART 225

PCB R06-25

CONTROL OF EMISSIONS FROM

Rulemaking – Air

LARGE COMBUSTION SOURCES

CORRECTED JOINT STATEMENT OF ILLINOIS ENVIRONMENTAL

PROTECTION AGENCY AND DYNEGY MIDWEST GENERATION, INC.

NOW COME the Illinois Environmental Protection Agency (“Illinois EPA”) and

Dynegy Midwest Generation, Inc. (“Dynegy”), by their respective attorneys, and state as

follows:

On March 14, 2006, the Illinois EPA submitted to the Illinois Pollution Control

Board (“IPCB”) proposed 35 Ill. Adm. Code Part 225 to control emissions of mercury

from electric generating units. On May 23, 2006 Illinois EPA filed an amendment to the

proposed regulation that provided new Section 225.234 Temporary Technology Based

Standard (“TTBS”).

Beginning on June 12 and continuing through June 23, 2006, the IPCB conducted

a public evidentiary hearing on the Illinois EPA proposed regulation and the TTBS. The

Illinois EPA presented testimony supporting its proposed regulation and the TTBS and

Dynegy appeared and participated in that hearing.

On July 28, 2006, Ameren Energy Generating Company, AmerenEnergy

Resource Generating Company and Electric Energy, Inc. (collectively “Ameren”) and the

Illinois EPA filed the New Section 225.233 Multi-Pollutant Standards (“MPS”) along

with a Joint Statement supporting the inclusion of the proposed amendment with Illinois

EPA’s proposed regulation. As a result of negotiations between Dynegy and the Illinois

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EPA subsequent to the filing of the New Section 225.233 Multi-Pollutant Standards,

Dynegy states as follows:

Dynegy requests that the IPCB consider a revision of the New Section

225.233 Multi-Pollutant Standards proposed by Ameren and supported by the Illinois

EPA that would differ from the MPS filed by Ameren and Illinois EPA as described

below, and as reflected in Exhibit A attached hereto.

The “Base Emission Rate” under the MPS during the ozone season

would be the average emission rate of NO

from EGUs subject to the MPS, in

pounds per million Btu heat input, for 2003 through 2005 ozone season, instead of

the 2004 and 2005 ozone seasons;

The annual NO

emission standard under the MPS, beginning in

calendar year 2012, would be no more than 0.11 lb/mmBtu or a rate equivalent to

52% of the Base Annual Rate of NO

emissions, whichever is more stringent,

instead of 50% of the Base Annual Rate [revising Proposed New Section

225.233(e)(1)(A)];

The annual SO

emission standard under the MPS, during calendar

years 2013 and 2014, would be no more than 0.33 lb/mmBtu or a rate equivalent

to 44% of the Base Rate of SO

emissions, whichever is more stringent, instead of

35% of the Base Rate of SO

emissions [revising Proposed New Section

225.233(e)(2)(A)];

The annual SO

emission standard under the MPS, during calendar

years 2015 and thereafter, would be no more than 0.25 lb/mmBtu or a rate

equivalent to 35% of the Base Rate of SO

emissions, whichever is more

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stringent, instead of 30% of the Base Rate of SO

emissions [revising Proposed

New Section 225.233(e)(2)(B)];

The Control Technology Requirements for Emissions of Mercury

under the MPS would allow EGUs that will be controlled by either an SO

scrubber or a fabric filter, instead of only an SO

scrubber, to install a listed

sorbent, an alternative sorbent, or other technique to control mercury emissions by

December 31, 2009, rather than July 1, 2009 [revising Proposed New Section

225.233(c)(1)(A)];

The MPS would allow the postponed installation of an activated

carbon injection system using a listed sorbent, an alternative sorbent, or other

technique to control mercury emissions until January 1, 2013, for certain small

EGUs defined as follows: 1) an MPS Group owner can designate EGUs smaller

than 90 gross MW output to install the technology by 2013 instead of 2009; or 2)

an MPS Group owner can designate selected EGUs less than 115 gross MW

capacity, up to 4% of the gross MW capacity of the MPS Group, to install the

technology by 2013 instead of 2009. This change adds the option of not requiring

installation for EGUs with capacity that is between 90 and 115 gross MW

capacity [revising Proposed New Section 225.233(c)(1)(B)];

For any cyclone fired electric generating unit that will install a

scrubber and baghouse by December 31, 2012, and firing Subbituminous Coal

that demonstrates a 75% reduction in mercury or an emission rate of 0.02 lb

mercury/GWh of gross electrical output, as of July 1, 2009, the minimum rate of

sorbent injection would be 2.5 pounds per million actual cubic feet, instead of 5

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pounds per million actual cubic feet [revising Proposed New Section

225.233(c)(2)(C)];

Under the Consent Decree in

United States of America, et al. v. Illinois

Power Company and Dynegy Midwest Generation, Inc.

, Dynegy has agreed to, and is

obligated to install the following new emission control equipment on coal-fired EGUs in

Illinois:

a. Flue gas desulfurization (FGD) for the control of SO

emissions on

Baldwin Units 1, 2 and 3 and Havana Unit 6 by December 31, 2012;

b. Fabric filters for the control of Particulate Matter emissions on

Baldwin Units 1, 2, and 3 and Havana Unit 6 by December 31, 2012;

and

c. A fabric filter and sorbent injection system for the control of mercury

on its Vermilion Units 1 and 2 by June 30, 2007.

Dynegy has also agreed, and is obligated under the Consent Decree, to operate its

existing selective catalytic reduction (“SCR”) equipment on Baldwin Units 1 and 2 and

Havana Unit 6 continuously throughout the year for the control of NO

emissions.

Dynegy and the Illinois EPA anticipate that the installation and operation

of pollution control equipment required to achieve the NO

and SO

standards under the

revised Proposed New Section 225.233 will achieve more reductions in NO

and SO

emissions than are required under the Clean Air Interstate Rule or “CAIR” or under the

Consent Decree for control of these pollutants. Dynegy and the Illinois EPA anticipate

that these emission reductions will contribute to reductions in the ambient levels of ozone

and PM

2.5

and will benefit the residents of the State of Illinois. The revised Proposed

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Section 225.233 would require covered Dynegy EGUs to achieve an overall annual

emission rate of 0.10 lb/mmBtu for NO

by 2012 and 0.19 lb/mmBtu for SO

by 2015.

Dynegy and the Illinois EPA agree that compliance with the MPS revised

as set forth herein, is both technically feasible and economically reasonable, and that the

level of NO

and SO

emission reductions required under the revised MPS is expected to

contribute significantly to Illinois EPA’s efforts to achieve attainment of the National

Ambient Air Quality Standards, and that any further reductions needed would first be

sought from other sources.

WHEREFORE, Dynegy requests that the IPCB promulgate the revised Section

225.233 attached hereto as part of any Part 225 regulation. The Illinois EPA agrees with

the statements in this Joint Statement and supports promulgation of the revised Section

225.233 as part of the proposed Part 225.

Respectfully submitted,

ILLINOIS ENVIRONMENTAL PROTECTION AGENCY

By:

One of its Attorneys

John J. Kim, Managing Attorney

Charles E. Matoesian, Assistant Counsel

Gina Roccaforte, Assistant Counsel

Division of Legal Counsel

Illinois Environmental Protection Agency

1021 North Grand Avenue East

Post Office Box 19276

Springfield, Illinois 62794-9276

ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, AUGUST 23, 2006

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DYNEGY MIDWEST GENERATION,

Sr. Corporate Counsel

Dynegy, Inc.

1000 Louisiana Street, Suite 5800

Houston, Texas 77002

Phone: (713) 767-04450

Fax: (713) 767-8508

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A-2

Illinois EPA and Dynegy Proposed

Revised Multi-Pollutant Standard

Clean

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[Add Citation to Definitions Section of the Illinois Mercury Rule].Base Emission Rate means,

for a group of EGUs subject to emission standards for NOx and SO

pursuant to Section 225.233,

the average emission rate of NOx or SO

from the EGUs, in pounds per million Btu heat input,

for calendar years 2003 through 2005 (or for seasonal NOx, the 2003 through 2005 ozone

seasons), as determined from the data collected and quality assured by the USEPA pursuant to

the federal Acid Rain and NOx Budget Trading Programs for emissions and heat input of the

group of EGUs.

Section 225.233

Multi-Pollutant Standards (MPS)

General

(1)

As an alternative to compliance with the emissions standards of Section

225.230(a) of this Subpart, the owner of eligible EGUs may elect for such EGUs

to comply with this Section, which establishes control requirements and standards

for emissions of NOx and SO

, as well as emissions of mercury.

(2)

For the purpose of this Section:

(A)

An eligible EGU is an EGU located in Illinois that commenced

commercial operation on or before December 31, 2004.

(B)

For the purposes of this Section, ownership of an eligible EGU is

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

a company that owns an EGU or EGUs or by 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 has the right or authority

to submit a CAAPP application on behalf of the EGU.

(3)

The owner of one or more EGUs electing to comply with this Subpart by means

of this Section must submit an application for a CAAPP permit modification to

the Agency, as provided in Section 225.220 of this Subpart, that includes the

information specified in subsection (b) of this Section and that clearly states the

owner’s election to comply with the provisions of this Section 225.233.

(A)

If the owner of one or more EGUs elects to comply with this Subpart by

means of this Section, then all EGUs it owns in Illinois as of July 1, 2006,

as defined in subsection (a)(2)(B) of this Section, shall be thereafter

subject to the standards and control requirements of this Section, except as

provided in subsection (a)(3)(B) below. Such EGUs shall be referred to

as an MPS Group.

(B)

Notwithstanding the foregoing, the owner may exclude from the MPS

Group any EGU scheduled for permanent shutdown that the owner so

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designates in its CAAPP application required to be submitted pursuant to

subsection (a)(3), with compliance for such unit(s) to be achieved by

means of Section 225.235 of this Subpart.

(4)

When an EGU is subject to this Section, the requirements of this Section shall

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

for the EGU.

Notice of Intent

The owner of one or more EGUs that intends to comply with this Subpart by means of

this Section shall notify the Agency of its intention by December 31, 2007, which

notification shall be accompanied by the following:

(1)

Identification of each of the EGUs that will be complying with this Subpart by

means of the multi-pollutant standards contained in this Section, with evidence

that the owner has identified all EGUs that its owns in Illinois as of July 1, 2006,

and that commenced commercial operation on or before December 31, 2004.

(2)

If an EGU identified above is also owned or operated by an entity different than

the owner 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 accepting the application.

(3)

The Base Emission Rates for the EGUs, with copies of supporting data and

calculations.

(4)

A summary of the current control devices on the EGUs and identification of the

additional control devices that will likely be needed for the EGUs to comply with

emission control requirements of this section, including identification of the

EGUs in the MPS group that will be addressed by subsection (c)(1)(B) of this

Section, with information showing that the eligibility criteria for this paragraph

are satisfied.

(5)

Identification of any EGU or EGUs that are scheduled for permanent shut down,

as provided by Section 225.235, which will not be part of the MPS Group and

will not be complying with this Subpart by means of this Section.

Control Technology Requirements for Emissions of Mercury:

(1)

(A)

For each EGU in an MPS Groupother than an EGU that is addressed by

paragraph (c)(1)(B) of this Section for the period beginning July 1, 2009

(or December 31, 2009 for an EGU for which an SO

scrubber or fabric

filter is being installed to be in operation by December 31, 2009), and

ending on December 31, 2014 (or such earlier date that the EGU is

subject to the mercury emission standard in subsection (d)(1) of this

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Section), the owner or operator of the EGU shall install, to the extent not

already installed, and properly operate and maintain one of the following:

(i)

A Halogenated Activated Carbon Injection System, complying with

the sorbent injection requirements of subsection (c)(2) of this Section,

except as may be otherwise provided by subsection (c)(4) of this

Section, and followed by a Cold-Side Electrostatic Precipitator or

Fabric Filter; or

(ii)

If the boiler fires bituminous coal, a Selective Catalytic Reduction

(SCR) System and an SO

Scrubber.

(B)

An owner of an EGU has two options under this subsection. For an MPS

Group that contains EGUs smaller than 90 gross MW in capacity, the

owner may designate any such EGUs to be not subject to subsection

(c)(1)(A) of this section. Or, for an MPS Group that contains EGUs with

gross MW capacity of less than 115 MW, the owner may designate any

such EGUs to be not subject to subsection (c)(1)(A) of this Section,

provided that the aggregate gross MW capacity of such designated EGUs

does not exceed 4% of the total gross MW capacity of the MPS Group.

For such EGUs subject to one of these two options, unless the EGU is

subject to the emission standards in subsection (d)(2) of this Section,

beginning on January 1, 2013, and continuing until such date that the

owner or operator of the EGU commits to comply with the mercury

emission standard in subsection (d)(2) of this Section, the owner or

operator of the EGU shall install and properly operate and maintain a

Halogenated Activated Carbon Injection System, complying with the

sorbent injection requirements of subsection (c)(2), except as may be

otherwise provided by subsection (c)(4) of this Section, and followed by

either a Cold-Side Electrostatic Precipitator or Fabric Filter. The use of a

properly installed, operated and maintained Halogenated Activated Carbon

Injection System that meets the sorbent injection requirements of

subsection (c)(2) of this Section is referred to as the “principal control

technique.”

(2)

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

subsection (c)(1) of this Section, the owner or operator of the EGU shall inject

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

subsection (c)(4) of this Section, shall be deemed to be the following:

(A)

Use of an injection system designed for effective absorption of mercury,

considering the configuration of the EGU and its ductwork;

(B)

The injection of halogenated activated carbon manufactured by Alstom,

Norit, or Sorbent Technologies, or the injection of other halogenated

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

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to have similar or better effectiveness for control of mercury emissions;

and

(C)

The injection of sorbent at the following minimum rates, as applicable:

(i)

For an EGU firing subbituminous coal, 5.0 pounds per

million actual cubic feet or for any cyclone-fired EGU that will

install a scrubber and baghouse by December 31, 2012, and

already meeting an emission rate of 0.020 lb mercury/GWh gross

electrical output or at least 75 percent reduction of input mercury,

2.5 pounds per million actual cubic feet.

(ii)

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

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

and baghouse by December 31, 2012, and already meeting an

emission rate of 0.020 lb mercury/GWh gross electrical output or

at least 75 percent reduction of input mercury, 5.0 pounds per

million actual cubic feet.

(iii)

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.

(iv)

A rate or rates lower than the rate specified above may be set on a

unit-specific basis to the extent that the owner or operator of the

EGU demonstrates that such rate or rates are needed so that carbon

injection will not increase particulate matter emissions or opacity

so as to threaten compliance with applicable requirements for

particulate matter or opacity.

For this purpose, flue gas flow rate shall be determined for the point of sorbent

injection; provided, however, 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 may otherwise be calculated from the stack flow

rate, corrected for the difference in gas temperatures.

(3)

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

subsection (c)(2)(C)(iv) of this Section shall submit an application to the Agency

proposing such rate or rates, and shall meet the following requirements:

(A)

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

federally enforceable operating permit for the EGU and include a

summary of relevant mercury emission 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.

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(B)

This application shall 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 (c)(1)(A) of

this subsection shall apply for unit-specific injection rate or rates by July

1, 2009. Thereafter, the owner or operator of the EGU may supplement its

application.

(C)

The decision of the Agency denying a permit or granting a permit with conditions

that set a lower injection rate or rates may be appealed to the Board pursuant to

Section 39 of the Act.

(D)

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.

(4)

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

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

an EGU need not comply with the requirements of subsection (c)(2) of this

Section for such system as needed to carry out an evaluation of the practicality

and effectiveness of such technique, as further provided below:

(A)

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

accordance with a formal evaluation program submitted to the Illinois

EPA at least 30 days in advance.

(B)

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

scope reasonably needed to complete the desired evaluation of the

alternative control technique, as initially addressed by the owner or owner

in a support document submitted with the evaluation program.

(C)

The owner or operator of the EGU shall submit a report to the Illinois EPA

no later than 30 days after the conclusion of the evaluation describing the

evaluation that was conducted and providing the results of the evaluation.

(D)

If the evaluation of the alternative control technique shows less effective

control of mercury emissions from the EGU than achieved with the

principal control technique, the owner or operator of the EGU shall

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

alternative control technique shows comparable effectiveness to the

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

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

least as effective as the principal control technique or resume use of the

principal control technique. If the evaluation of the alternative control

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technique shows more effective control of mercury emissions, the owner

or operator of the EGU shall continue to use the alternative control

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

technique, if it continues to be subject to this subsection (c) of this

Section.

(5)

In addition to complying with the applicable recordkeeping and monitoring

requirements in Sections 225.240 through 225.290 of this Subpart, the owner or

operator of an EGU electing to comply with this Subpart by means of this

Section shall also:

(A)

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

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

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

exhaust gas at the injection point, on a weekly average.

(B)

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

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

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

recording this data and the sorbent carbon feed rate, in pounds per million

actual cubic feet of exhaust gas at the injection point, on an hourly

average.

(C)

If a blend of bituminous and sub-bituminous coal is fired in the EGU, keep

records of the amount of each type or coal burned and the required

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

(6)

In addition to complying with the applicable reporting requirements in Sections

225.240 through 225.290 of this Subpart , the owner or operator of an EGU

electing to comply with this Subpart by means of this Section shall also submit

quarterly reports for the recordkeeping and monitoring conducted pursuant to

subsection (c)(5) of this Section.

Emission Standards for Mercury

(1)

For each EGU in an MPS Group that is not addressed by subsection (c)(1)(B) of

this Section beginning January 1, 2015 (or such earlier date that the owner or

operator of the EGU notifies the Agency that it will comply with these standards)

and thereafter, the owner or operator of the EGU shall comply with one of the

following standards on a rolling 12-month basis:

(A)

An emission standard of 0.0080 lb mercury/GWh gross electrical output;

(B)

A minimum 90-percent reduction of input mercury.

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(2)

For each EGU in an MPS Group that has been addressed under subsection

(c)(1)(B) of this Section, beginning on the date that the owner or operator of the

EGU notifies the Agency that it will comply with these standards and thereafter,

the owner or operator of the EGU shall comply with one of the following

standards on a rolling 12-month basis:

(A)

An emission standard of 0.0080 lb mercury/GWh gross electrical output;

(B)

A minimum 90-percent reduction of input mercury.

(3)

Compliance with the mercury emission standard or reduction requirement shall be

calculated in accordance with Section 225.230(a) or (d) of this Subpart.

Emission Standards for NOx and SO

(1)

NOx Emission Standards:

(A)

Beginning in calendar year 2012, and each calendar thereafter, for the

EGUs in each MPS Group, the owners and operators of the EGUs shall

comply with an overall NOx annual emission rate of no more than 0.11

lbs/million Btu or a rate equivalent to 52 percent of the Base Annual Rate

of NOx emissions, whichever is more stringent.

(B)

Beginning in the 2012 ozone season and each ozone season thereafter, for

the EGUs in each MPS Group, the owners and operators of the EGUs shall

comply with an overall NOx seasonal emission rate of no more than 0.11

lbs/million Btu or a rate equivalent to 80 percent of the Base Seasonal

Rate of NOx emissions, whichever is more stringent.

(2)

Emissions Standards:

(A)

Beginning in calendar year 2013 and continuing in calendar year 2014, for

the EGUs in each MPS Group, the owners or operators of EGUs shall

comply with an overall SO

annual emission rate of 0.33 lbs/million Btu

or a rate equivalent to 44 percent of the Base Rate of SO

emissions,

whichever is more stringent.

(B)

Beginning in calendar year 2015, and continuing in each calendar year

thereafter, for the EGUs in each MPS Grouping, the owners or operators

of EGUs shall comply with an overall annual emission rate for SO

of 0.25

lbs/million Btu or a rate equivalent to 35 percent of the Base Rate of SO

emissions, whichever is more stringent.

(3)

Compliance with the NOx and SO

emission standards shall be determined in

accordance with Sections 225.310, 225.410, and 225.510 of this Part. The owners

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or operators of EGUs must complete the determination of compliance by March 1

of the following year for annual standards and by November 1 for seasonal

standards, by which date a compliance report shall be submitted to the Agency.

Requirements for NOx and SO2 Allowances

(1)

The owners or operators of EGUs in an MPS Group shall not sell or trade to any

person or otherwise exchange with or give to any person NOx allowances

allocated to the EGUs in the MPS Group for vintage years 2012 and beyond that

would otherwise be available for sale, trade or exchange as a result of actions

taken to comply with the standards in subsection (e) of this Section. Such

allowances that are not retired for compliance shall be surrendered to the Agency

on an annual basis, beginning in calendar year 2013. This provision does not

apply to the use, sale, exchange, gift or trade of allowances among the EGUs in an

MPS Group.

(2)

The owners or operators of EGUs in an MPS Group shall not sell or trade to any

person or otherwise exchange with or give to any person SO2 allowances

allocated to the EGUs in the MPS Group for vintage years 2013 and beyond that

would otherwise be available for sale or trade as a result of actions taken to

comply with the standards in subsection (e) of this Section. Such allowances that

are not retired for compliance or otherwise surrendered pursuant to a consent

decree to which the State of Illinois is a party, shall be surrendered to the Agency

on an annual basis, beginning in calendar year 2014. This provision does not

apply to the use, sale, exchange, gift or trade of allowances among the EGUs in an

MPS Group.

(3)

The provisions of this subsection do not restrict or inhibit the sale or trading of

allowances that become available from one or more EGUs in a MPS Group as a

result of holding allowances that represent over-compliance with the NOx or SO

standard in subsection (e) of this Section, once such a standard becomes effective,

whether such over-compliance results from control equipment, fuel changes,

changes in the method of operation or unit shut downs, or for other reasons.

(4)

For purposes of this subsection, NOx and SO

allowances shall mean allowances

necessary for compliance with Sections 225.310, 225.410, 225.510 of this Part, 40

CFR Part 72, or 40 CFR 96.101,

et seq

., and 40 CFR 96.301,

et seq

. The

provisions of this Section do not prohibit the owners or operators of EGUs in an

MPS Group from purchasing or otherwise obtaining allowances from other

sources as allowed by law for purposes of complying with federal or state

requirements, excluding specifically the requirements of this Section.

(5)

By March 1, 2010, and continuing each year thereafter, the owner or operator of

EGUs in an MPS Group shall submit a report to the Agency demonstrating

compliance with the requirements of this subsection for the previous year, which

shall include identification of any allowances that have been surrendered to the

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USEPA or to the Agency, and identification of any allowances that were sold,

gifted, used, exchanged or traded because they became available due to over-

compliance.

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

applicable emission standards of subsections (d) and (e) of this Section for 12 months, the

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

air pollution control equipment proposed to be constructed for emissions of mercury,

NOx or SO

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STATE OF ILLINOIS

)

COUNTY OF SANGAMON

)

CERTIFICATE OF SERVICE

I, the undersigned, an attorney, state that I have served electronically the attached

CORRECTED JOINT STATEMENT OF THE ILLINOIS ENVIRONMENTAL

PROTECTION AGENCY AND DYNEGY MIDWEST GENERATION, INC. upon the

following person:

Dorothy Gunn

Clerk

Illinois Pollution Control Board

James R. Thompson Center

100 West Randolph St., Suite 11-500

Chicago, IL 60601-3218

and mailing it by first-class mail from Springfield, Illinois, with sufficient postage affixed

to the following persons:

SEE ATTACHED SERVICE LIST

ILLINOIS ENVIRONMENTAL

PROTECTION AGENCY

__________________________

Gina Roccaforte

Assistant Counsel

Division of Legal Counsel

Dated: August 23, 2006

1021 North Grand Avenue East

Springfield, Illinois 62794-9276

(217) 782-5544

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SERVICE LIST 06-25

Marie Tipsord

Hearing Officer

Illinois Pollution Control Board

James R. Thompson Center

100 West Randolph St., Suite 11-500

Chicago, IL 60601-3218

77 West Wacker, Suite 4100

Special Assistant Corporation Counsel

Office of Public Utilities

800 East Monroe

Springfield, IL 62757

S. David Farris

Environmental, Health and Safety

Manager

Office of Public Utilities

City of Springfield

201 East Lake Shore Drive

Springfield, IL 62757

Faith E. Bugel

Howard A. Lerner

Meleah Geertsma

Environmental Law and Policy Center

205 West Monroe Street, 4th Floor

Chicago, IL 60606

Christopher W. Newcomb

Karaganis, White & Magel, Ltd.

414 North Orleans Street

Springfield, IL 62705-5776

233 South Wacker Drive

122 W. Washington Ave., Suite 830

Madison, WI 53703

James W. Ingram

Senior Corporate Counsel

Dynegy Midwest Generation, Inc.

1000 Louisiana, Suite 5800

Houston, TX 77002

Dianna Tickner

Prairie State Generating Company, LLC

St. Louis, MO 63101-1826

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Robert Asplund

5000 Dominion Blvd.

Glen Allen, VA 23060

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