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CITGO

Petroleum Corporation

135th

Street

&

New

Avenue

Lemont,

IL

60439-3659

August

13,

2009

Mr.

Timothy

Fox,

Hearing

Officer

CttKs

O’)

Illinois

Pollution

Control

Board

James R.

Thompson

Center

STATE

OF

100

W.

Randolph

Suite

11-500

Chicago,

Illinois

60601

Rulemaking

R2006-22,

In

the

Matter

of;

NOx

Trading

Program:

Amendments

to

35

Ill.

Adm,

Code

Part

217;

Response

to

Motions

by

the

Illinois

Environmental

Regulatory

Oroup

Mr.

Fox;

I am

writing

on

behalf

of

CITGQ

Petroleum

Corporation

in

response

to

the

Illinois

Pollution

Control

Board’s

(“Board”) August 6,

2009

Order

requesting

responses

to the

Illinois

Environmental

Regulatory

Group’s

(“IERG”)

Motion

for

Emergency

Rule

and

Motion

for

Expedited

Action

on

IERG’s

Alternative

Proposal

(collectively

“Motions”).

We

would

like

to

offer our

support

for

the

Motions,

and

urge

the

Board

to

consider

the

following

in

ruling

on

the

Motions:

1.

We

believe it

is

in the

best

interest

of

business

in

Illinois to

adopt

rules,

such

as

the

emergency

rule

and

alternative

proposal

described

in

the

Motions,

that

require

NOx

allowances

to

be

distributed

for

the

2009

ozone

season,

as

well

as

subsequent

control periods,

2.

We

are

an

owner/operator

of

a budget

unit

subject to

the

current

Subpart

U.

35

lii.

Admin.

Code

Part

21

7.Subpart

U.

3.

We

have

not

received

allocations

of

NOx

allowances

for

the

2009

ozone

season,

nor

for

any

subsequent

yea

rc.

4.

We

understand

that

the

current

version

of

Subpart

U

is

a valid and

enforceable

regulation

in

Illinois

that

requires

subject

sources

to

hold

NOx allowances

for

each

ton

of

NOx

emitted

during the

ozone

season

by

November

30

of

the

applicable

year.

5.

We

understand

that

the

USEPA

is

no

longer issuing

allowances

for

the

NOx

Budget

Trading

Program, as

would be

required

to

satisfy the

above

described

requirement.

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---

Mr. Timothy

Fox

August

13, 2009

Page 2

6. We

understand

that

NOx

allowances could

potentially

be

obtained

through

the

purchase

of

Clean

Air Interstate

Rule

(“CAIn”)

NOx allowances,

although

we are

uncertain

whether

those

allowances

would be legally sufficient

to satisfy

the

Subpart

U

requirement

to hold

NOx

SIP Call allowances.

Nor,

even

if sufficient,

could

we

demonstrate

compliance

with

the requirement,

due

to

our

inability

to

obtain CAIR compliance

accounts from

the USEPA

Clean

Air

Markets

Division

(“CAMD”),

absent a federally

approved

trading program

in

Illinois,

The opportunity

to

provide

this response is

appreciated.

In light of the

above,

(he

Board

is requested to:

-

Grant

IERG’s Motion

for

Emergency Rule in

order

to

require

that 2009

NOx

allowances

be

distributed to

impacted sources,

and

-

Grant IEFIG’s

Motion

for Expedited

Action on IERGs

Alternative

Proposal

in

order to bring NOx

SIP Call budget units

into the CAIR NOx

Ozone

Season

Trading Program for

the

2010

control period

and

beyond.

Respectfully

submitted,

CITGO Petroleum

Corporation

By:

c2

C. W.

Harmon, Manager

Health,

Safety,

Security and

Environmental

Lemont Refinery

CITGO

Petroleum

Corporation

1

35

St.

and

New Ave.

Lemont, IL 60439

630/257-4550

MWK/PLM

cc/att:

Illinois

Environmental

Regulatory Group

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