CLEp<i
    JUN
    24
    2009
    ps,i1;
    d
    OFFICE
    OF
    THE
    SECRETARY
    OF STATE
    JESSE WHITE•
    Secretary of
    State
    June 19, 2009
    POLLUTION
    CONTROL
    BOARD
    JOHI’.T
    THERRIAULT
    ASSISTANT
    CLERK
    100 W RANDOLPH
    ST,
    STE 11-500
    CHICAGO,
    IL
    60601
    Dear JOHN
    THERRIAULT
    ASSISTANT
    CLERK
    Your rules
    Listed below met
    our
    codification standards
    and have been
    published in
    Volume
    33,
    Issue 26 of the
    Illinois Register,
    dated
    6/26/2009.
    PROPOSED RULES
    Nitrogen Oxides
    Emissions
    35 111. Adm.
    Code
    217
    8880
    Point of
    Contact: Nancy
    Miller
    If you have any
    questions, you
    may contact
    the Administrative
    Code
    Division
    at
    (217)
    782 - 7017.
    Index
    Department - Administrative
    Code Division - 111 East
    Monroe Springfield,
    IL 62756

    ILLINOIS REGISTER
    I
    POLLUTION CONTROL BOARD
    NOTICE
    OF PROPOSED AMENDMENT
    CLEç
    c;:IEt
    1)
    Heading
    of the Part: Nitrogen Oxides
    Emissions
    iUN2h
    F
    2Oüg
    OFIQ,
    2)
    Code
    Citation:
    35 Iii.
    Adm.
    Code
    217
    fl
    COfl
    01
    8oaj
    3)
    Section
    Number:
    Proposed
    Action:
    217.751
    New
    4)
    Statutory
    Authority:
    Implementing Section 10 and authorized
    by
    Sections 27 and 28
    of
    the Environmental Protection Act [415 ILCS 5/10, 27, and 28)
    5)
    A Complete Description of the Subjects and Issues Involved:
    The Board’s May
    7,
    2009 opinion and order in In the Matter of: Nitrogen Oxide
    (NOx)
    Trading
    Program Sunset Provisions
    for Electric Generating Units
    (EGU’s):
    New 35 Ill.
    Adm. Code 217.751, R09-20 discusses in detail the amendments to Part 217.Subpart
    W
    proposed in this rulemaking.
    On May 7, 2009, the Illinois Pollution Control Board authorized first notice publication,
    without comment on the merits, of an Illinois Environmental Protection Agency (IEPA)
    proposal
    that
    would
    sunset the provisions of
    the Nitrogen
    Oxides (NOx) Trading Program
    rules for electrical generating units (EGUs). JEPA filed this proposal with the Board on
    April 21, 2009, along with a motion for expedited review requesting immediate first
    notice
    publication and the scheduling
    of
    hearings
    as soon as possible.
    In its statement of reasons, the JEPA states that Illinois adopted both the NOx rules
    at 35
    Ill. Adm. Code 217 and the Clean Air Interstate Rule (CAIR)
    at 35 Iii. Adm. Code 225
    after adoption of similar rules by the United States Environmental Protection Agency
    (USEPA). USEPA has approved
    both sets
    of rules
    for inclusion in the State
    Implementation Plan (SIP) for ozone attainment. As do the USEPA rules, the CAIR
    provisions, as set forth in 35 Iii. Code 225.Subpart E, include a trading program for
    control of NOx emissions during the ozone season that replaces the provisions in Part
    217. Subpart
    W for EGUs
    beginning with the 2009 control period (May 1 through
    September
    30)
    and thereafter.
    But, due to a
    federal
    court
    ruling
    concerning the federal CAIR rules in North Carolina v.
    USEPA, 531 F.3d
    896
    (C.A.D.C.
    Cir.
    2008),
    USEPA must take additional action
    concerning its rules. To solve the problem, in 40 CFR 51.123(bb)(1)(i),USEPA
    has
    provided that states such as Illinois with approved CAIR programs may revise their
    applicable
    SIP so
    that
    the
    provisions
    of the NOx, SIP Call
    Trading
    Program do not apply
    to affected EGUs.
    cr
    J$4122
    33

    ILLINOIS
    REGISTER
    POLLUTION CONTROL BOARD
    NOTICE OF PROPOSED AMENDMENT
    IEPA’s
    proposal requesting the Board to amend the Illinois rules is the first
    step to
    revision of
    the SIP. If the Board adopts a final rule
    in
    this rulemaking,
    IEPA will submit
    the rule to
    USEPA for approval and inclusion in the SIP.
    EGUs currently
    must comply with two sets of rules for the 2009 ozone season and
    beyond: the
    Illinois Clean Air Interstate Rule (CAIR) requirements at Part 225
    and
    the
    Illinois
    NOx Trading Program at Part 217. To address and remove the
    duplication, this
    rulemaking proposes to sunset the provisions of the NOx Trading Program, by
    adding
    a
    new Part 217.75 1 to sunset the
    rules beginning with the 2009 ozone control season.
    6)
    Published
    studies or reports, and sources of underlying data, used to compose
    this
    rulemaking:
    The Agency stated that it
    relied on the following documents in preparing its
    proposal
    to
    the Board:
    a.
    Illinois
    Environmental Protection Act (415 ILCS 5 et. seq.)
    b.
    The
    Clean Air Act, as amended in 1990 (42 U.S.C. §7401 et seq.);
    c.
    Rule to Reduce Interstate Transport of
    Fine Particulate Matter and Ozone
    (Clean Air Interstate Rule); Revisions to Acid Rain Program; Revisions to
    the NOx SIP
    Call; Final Rule,
    70
    Fed.
    Reg.
    25162 (May 12, 2005);
    d.
    Approval
    and
    Promulgation of Air Quality Implementation Plans; Illinois;
    Oxides of Nitrogen Regulations, 66 Fed.
    Reg. 56454 (November
    8,
    2001)
    e.
    Approval of Implementation Plans of Illinois;
    Clean Air
    Interstate Rule,
    72 Fed. Reg. 58528
    (October
    16,
    2007);
    f.
    North
    Carolina v. USEPA, 531 F.3d 896 (C.A.D.C. Cir. 2008); and
    g.
    North Carolinav. USEPA, 550 F.3d 1176 (C.A.D.C. Cir. 2008).
    7)
    Will this proposed amendment replace an emergency rule currently in effect?
    No.
    8)
    Does this
    rulemaking contain an automatic repeal date? No.
    9)
    Does this
    proposed
    amendment
    contain
    incorporations by
    reference?
    No.

    ILLINOIS REGISTER
    POLLUTION CONTROL BOARD
    NOTICE
    OF
    PROPOSED
    AMENDMENT
    10)
    Are there any
    other proposed rules pending
    on this Part? Yes
    Section
    Numbers:
    Proposed Action:
    Illinois Register Citation:
    217.386
    Amend
    32 Ill. Reg. 17075; Oct. 31,
    2008
    217.388
    Amend
    32 Ill. Reg. 17075; Oct. 31,
    2008
    217.390
    Amend
    32 Ill. Reg. 17075; Oct.
    31, 2008
    217.392
    Amend
    32
    Ill. Reg. 17075; Oct.
    31, 2008
    217.394
    Amend
    32 Ill. Reg. 17075; Oct. 31, 2008
    217.396
    Amend
    32111. Reg. 17075; Oct. 31, 2008
    217.100
    Amended
    33 111. Reg. 6921;
    May22, 2009
    217.104
    Amended
    33
    Iii. Reg. 6921; May22, 2009
    2 17.121
    Repealed
    33 Ill. Reg. 6921; May 22,
    2009
    217.141
    Amended
    33
    Ill. Reg. 6921; May 22, 2009
    217.150
    New Section
    33 Ill. Reg. 6921;
    May22, 2009
    217.152
    New Section
    33 Ill. Reg. 6921; May22, 2009
    217.154
    New Section
    33
    Ill. Reg. 6921; May22, 2009
    2 17.155
    New
    Section
    33 111. Reg. 6921; May
    22, 2009
    217.156
    New Section
    33 111. Reg. 6921; May22, 2009
    217.157
    New Section
    33
    Ill. Reg. 6921; May22, 2009
    217.158
    New Section
    33 Iii. Reg. 6921;
    May22, 2009
    217.160
    New Section
    33 Ill. Reg. 6921; May22, 2009
    2 17.162
    New Section
    33 Ill. Reg. 6921; May 22, 2009
    217.164
    New Section
    33 Ill. Reg.
    6921;
    May
    22, 2009
    217.165
    New Section
    33 Ill. Reg. 6921; May 22, 2009
    217.166
    New Section
    33
    Ill.
    Reg.
    6921; May 22, 2009
    217.180
    New Section
    33 111. Reg. 6921; May 22, 2009
    217.182
    New Section
    33111. Reg. 6921;
    May22, 2009
    217.184
    New Section
    33
    111. Reg. 6921; May22, 2009
    217.185
    New Section
    33 111. Reg. 6921; May22, 2009
    217.186
    New Section
    33 Ill. Reg. 6921;
    May22, 2009
    217.200
    New Section
    33 Ill. Reg. 6921;
    May22, 2009
    217.202
    New Section
    33 Ill. Reg.
    6921; May22, 2009
    217.204
    New Section
    33
    Ill.
    Reg.
    6921; May22, 2009
    217.220
    New Section
    33
    Ill. Reg. 6921; May22, 2009
    217.222
    New Section
    33 Ill. Reg. 6921; May22, 2009
    217.240
    New Section
    33 Ill. Reg. 6921; May22, 2009
    217.242
    New Section
    33 Ill. Reg. 6921; May
    22, 2009
    217.244
    New Section
    33
    Ill.
    Reg.
    6921; May 22, 2009
    217.340
    New Section
    33 Ill. Reg. 6921; May22, 2009
    217.342
    New Section
    33111. Reg. 6921; May22, 2009

    ILLINOIS REGISTER
    POLLUTION CONTROL BOARD
    NOTICE OF PROPOSED AMENDMENT
    217.344
    2 17.345
    217.Appendix H
    New Section
    New Section
    New Section
    33 Ill. Reg.
    6921; May22, 2009
    33 Ill. Reg.
    6921; May22, 2009
    33 Ill. Reg.
    6921; May22, 2009
    11)
    Statement of Statewide Policy Objectives: This proposed rule does not
    create or enlarge
    a State
    mandate, as defined in Section 3(b) of the State Mandates Act. [30
    ILCS
    805/3(b)
    (2004)].
    12)
    Time, Place, and
    Manner in which interested persons may comment on this proposed
    rulemaking:
    The Board
    will accept written public comment on this proposal for 45 days
    after
    the date
    of publication in the Illinois
    Register.
    Comments
    should reference Docket R09-20 and be
    addressed to:
    Clerk’s Office
    Illinois Pollution Control Board
    100 W.
    Randolph St., Suite 11-500
    Chicago, IL 60601
    The Board
    will also accept sworn testimony and oral public comment at the
    hearings
    scheduled as followed:
    Thursday, June
    18, 2008, 1:00 p.m.
    JAMES R.
    THOMPSON CENTER
    Room 11-512
    100W. Randolph—Room
    11-512
    Chicago, IL
    60601
    Thursday, July 23, 2009 1:00 p.m.
    IEPA OFFICE BUILDING
    Room
    1244N, First Floor
    1021 N. Grand Avenue East
    Springfield, IL 62794
    Procedural details concerning the order of hearings and
    requirements concerning pre
    filing of testimony are detailed in a May 13, 2009 hearing officer
    order.
    Interested persons may request copies of the Board’s
    opinion and orders and hearing
    officer orders in
    Docket R09-20
    by
    calling the Clerk’s office at 312-814-3620, or
    download
    from the Board’s Web site
    at
    www.ipcb.state.il.us.
    For more information, contact Kathleen Crowley at
    312/814-6929 or email at
    crowlek@ipcb.state.il.us.

    ILLINOIS
    REGISTER
    POLLUTION CONTROL BOARD
    NOTICE OF PROPOSED AMENDMENT
    13)
    Initial Regulatory
    Flexibility Analysis:
    A)
    Types of small businesses, small
    municipalities
    and not for profit corporations
    affected: Any of the 229 electrical generating units that are subject to the NOx
    Trading Program and that identify themselves as small businesses, small
    municipalities, or not-for-profit corporations.
    B)
    Reporting, bookkeeping
    or
    other procedures required
    for compliance:
    None
    C)
    Types of Professional skills necessary for compliance: None.
    14)
    Regulatory Agenda on which this rulemaking was summarized: July 2006 (30 Ill. Reg.
    11906-08).
    This rulemaking
    was not
    included in either of
    the two most
    recent regulatory
    agendas because the need for the rulemaking is the result of recent federal court decisions
    concerning USEPA rules. This caused uncertainty associated with the CAIR Trading
    program that was adopted by both USEPA and Illinois to
    replace
    the one that
    is the
    subject of this proposal. This is explained in item 5), above.
    15)
    Does this amendment require the
    review
    of the
    Procurement Policy
    Board as
    specified
    in
    Section 5-25 of the lllinois Procurement Code?
    [30
    ILCS 500/5-25] No
    The full text of the
    Proposed
    Amendment
    begins on the next
    page:

    ILLINOIS
    REGISTER
    POLLUTION CONTROL BOARD
    NOTICE OF PROPOSED
    AMENDMENT
    TITLE 35: ENVIRONMENTAL
    PROTECTION
    SUBTITLE B: AIR POLLUTION
    CHAPTER I: POLLUTION CONTROL
    BOARD
    SUBCHAPTER C: EMISSION
    STANDARDS
    AND
    LIMITATIONS
    FOR STATIONARY SOURCES
    PART 217
    NITROGEN OXIDES EMISSIONS
    SUBPART A: GENERAL PROVISIONS
    Section
    217.100
    Scope
    and Organization
    217.101
    Measurement Methods
    217.102
    Abbreviations and Units
    2 17.103
    Definitions
    217.104
    Incorporations by Reference
    SUBPART B: NEW FUEL COMBUSTION EMISSION SOURCES
    Section
    217.12 1
    New Emission Sources
    SUBPART C: EXISTING FUEL
    COMBUSTION EMISSION SOURCES
    Section
    2
    17.141
    Existing
    Emission Sources in
    Major
    Metropolitan Areas
    SUBPART K: PROCESS EMISSION SOURCES
    Section
    217.301
    Industrial Processes
    SUBPART
    0:
    CHEMICAL MANUFACTURE
    Section
    217.381
    Nitric Acid Manufacturing Processes
    SUBPART Q: STATIONARY RECIPROCATING INTERNAL COMBUSTION
    ENGINES AND TURBINES
    Section
    217.386
    Applicability
    217.388
    Control and Maintenance Requirements

    ILLINOIS REGISTER
    POLLUTION CONTROL BOARD
    NOTICE OF PROPOSED AMENDMENT
    2
    17.390
    Emissions
    Averaging Plans
    217.392
    Compliance
    2
    17.394
    Testing and
    Monitoring
    2 17.396
    Recordkeeping and Reporting
    SUBPART T: CEMENT KILNS
    Section
    217.400
    Applicability
    217.402
    Control Requirements
    217.404
    Testing
    2 17.406
    Monitoring
    2 17.408
    Reporting
    217.410
    Recordkeeping
    SUBPART U:
    NO
    CONTROL AND TRADING PROGRAM FOR
    SPECIFIED
    NO
    GENERATING UNITS
    Section
    217.450
    Purpose
    217.452
    Severability
    217.454
    Applicability
    217.456
    Compliance Requirements
    2
    17.458
    Permitting Requirements
    2
    17.460
    Subpart U
    NO
    Trading Budget
    2 17.462
    Methodology for Obtaining
    NO
    Allocations
    217.464
    Methodology for Determining
    NO
    Allowances from the New Source Set-Aside
    217.466
    NO
    Allocations Procedure for Subpart U Budget Units
    217.468
    New Source Set-Asides for “New” Budget Units
    2
    17.470
    Early Reduction Credits (ERCs) for Budget Units
    2 17.472
    Low-Emitter Requirements
    2 17.474
    Opt-In
    Units
    2 17.476
    Opt-In Process
    2
    17.478
    Opt-In Budget Units: Withdrawal from
    NO
    Trading
    Program
    217.480
    Opt-In Units: Change in Regulatory Status
    217.482
    Allowance Allocations to Opt-In Budget Units
    SUBPART V: ELECTRIC POWER GENERATION
    Section
    217.52 1
    Lake of Egypt Power Plant
    2 17.700
    Purpose

    ILLJNOIS REGISTER
    POLLUTION CONTROL
    BOARD
    NOTICE OF PROPOSED AMENDMENT
    217.702
    Severability
    217.704
    Applicability
    217.706
    Emission Limitations
    217.708
    NO
    Averaging
    217.710
    Monitoring
    217.712
    Reporting and Recordkeeping
    SUBPART W:
    NO
    TRADING PROGRAM FOR ELECTRICAL
    GENERATING
    UNITS
    Section
    217.750
    Purpose
    217.75 1
    Sunset
    Provisions
    217.752
    Severability
    217.754
    Applicability
    2 17.756
    Compliance
    Requirements
    217.758
    Permitting Requirements
    217.760
    NO
    Trading Budget
    217.762
    Methodology for Calculating
    NO
    Allocations for Budget Electrical
    Generating Units (EGUs)
    2
    17.764
    NO
    Allocations for Budget EGUs
    2
    17.768
    New Source Set-Asides for “New” Budget EGUs
    217.770
    Early Reduction Credits for Budget EGUs
    217.774
    Opt-In Units
    217.776
    Opt-In Process
    217.778
    Budget Opt-In Units: Withdrawal from
    NO
    Trading Program
    2 17.780
    Opt-In Units: Change in Regulatory Status
    2
    17.782
    Allowance Allocations to Budget Opt-In Units
    SUBPART X: VOLUNTARY
    NO
    EMISSIONS REDUCTION PROGRAM
    Section
    217.800
    Purpose
    2
    17.805
    Emission Unit Eligibility
    217.810
    Participation Requirements
    217.8 15
    NO
    Emission Reductions and the Subpart X
    NO
    Trading Budget
    217.820
    Baseline Emissions Determination
    2
    17.825
    Calculation of Creditable
    NO
    Emission Reductions
    2
    17.830
    Limitations on
    NO
    Emission Reductions
    217.835
    NO
    Emission Reduction Proposal
    2
    17.840
    Agency Action

    ILLINOIS REGISTER
    POLLUTION CONTROL BOARD
    NOTICE OF
    PROPOSED
    AMENDMENT
    217.845
    Emissions Determination
    Methods
    217.850
    Emissions Monitoring
    217.855
    Reporting
    217.860
    Recordkeeping
    217.865
    Enforcement
    217.APPENDIX A
    Rule into Section Table
    217.APPENDIX B
    Section into Rule Table
    217.APPENDIX
    C
    Compliance Dates
    217.APPENDIX D
    Non-Electrical Generating Units
    217.APPENDIX E
    Large
    Non-Electrical
    Generating Units
    217.APPENDIX
    F
    Allowances for Electrical Generating Units
    21 7.APPENDIX G
    Existing Reciprocating Internal Combustion Engines
    Affected by the
    NO
    SIP Call
    Authority:
    Implementing Sections 9.9 and 10 and authorized by Sections 27 and
    28.5 of
    the
    Environmental
    Protection Act [415 ILCS
    5/9.9,
    10, 27 and 28.5 (2004)].
    Source:
    Adopted as Chapter 2: Air Pollution, Rule 207: Nitrogen Oxides Emissions,
    R71-23,
    4
    PCB 191,
    April 13, 1972, filed and effective April 14, 1972; amended at 2 Ill. Reg. 17,
    p.
    101,
    effective April 13, 1978;
    codified
    at 7
    Ill.
    Reg. 13609; amended in
    R01-9 at 25 Ill. Reg. 128,
    effective December 26, 2000; amended in R01-1 1 at 25 Ill. Reg. 4597,
    effective March 15, 2001;
    amended in
    R0l-16 and R01-17 at 25 Ill. Reg. 5914, effective April 17, 2001; amended in R07-
    18
    at 31111. Reg. 14271,
    effective September 25, 2007;
    amended in
    R07-19, at 33 Ill. Reg.
    effective
    amended in R08-19, at 33 Ill. Reg.
    , effective
    in
    R09-20
    at
    33 Ill. Reg.
    , effective
    SUBPART W:
    NO
    TRADING PROGRAM FOR ELECTRICAL
    GENERATING UNITS
    Section 217.751 Sunset
    Provisions
    The provisions of
    this
    Subpart
    W shall not apply for
    any control period
    in 2009 or thereafter.
    Noncompliance
    with the provisions of this Subpart that
    occurred
    prior
    to
    2009 is
    subject
    to the
    applicable
    provisions of this Subpart.
    (Source: Added at 33 Ill. Reg.
    effective
    )

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