e8/e9/2eg

2e:31

2178244g

PRAIRIE

PO’JER,

INC.

PAGE

02/83

13476

State

H;ohwao0

!dYPàWER

INC.

,

Telephone:

2171829-4

WWW.ppi.coop

August

11,

2009

S

AUG

1”!2009

TE

OP

ILL’

Mr.

Timothy

Fox,

Ficaring

Officer

IUtIOfl

Cofltro1l0IS

illinois

Pollution

Control

Board

Oerd

James

R.

Thompson

Center

100W.

Randolph

Suite

11-500

Chicago.

Illinois

60601

RE;

Rulemaking

R2006-22,

in

the

Matter

of:

NOx

Trading

Program:

Amendments

to

35

Iii.

Adrn.

Code

Part

21

7

Response

1:0

Motions

by

the

Illinois

Environmental

Regulatory

Group

Dear

Mr.

Fox;

I

am

writing

on

behalf

of

Prairie

Power,

Inc.

in

response

to

the

Illinois

Pollution.

Control

Board’s

(“Board”)

August

6,

2009

Order

requesting

responses

to

the

Illinois

Environmental

Regulatory

Group’s

(“IFRG”)

Motion

for

Emergency

Rule

and

Motion

for

Expedited

Action

on

IFRG’s

Alternative

Proposal

(collectively

“Motions”).

We

would

like

to

offer

our

support

for

the

Motions,

and

urge

the

floard

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

arc

an

owner/operator

of

budget

unit(s)

subject

to

the

current

Subpart

U.

35111,

Admin.

Code

Part

217.Suhpart

U.

3,

We

have

not

received

allocations

of

NOx

allowances

for

the

2009

ozone

season,

nor

for

any

subsequent

years.

A

Tnnthxr,,

Et,l.gyTh

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08/08/2009

20:31

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PRAIRIE

POWER,

INC.

PAGE

03/03

4.

We

understand

that

the

current

version

of

Subpart

U

is

a

valid

and

enforceable

regulation

in

Jilinois

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.

S.

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.

6.

We

understand

that

NOx

allowances

could

potentially

be

obtained

through

the

purchase

of

Clean

Air

Interstate

Rule

(“CAR”)

NOx

allowances,

although

we

are

uncertain

whether

those

allowances

would

be

legally

sufficient

to

satisfy

the

Subpart

U

requirement

to

hold

NOx

SD’

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

(“CAMIY’),

absent

a

federally

approved

trading

program

in

Illinois.

7.

We

are

concerned

that

we,

through

no

fault

of

our

own,

may

he

in

violation

of

both

the

law

[and/or]

our

Clean

Air

Act

Permit

Program

(“CAAPP”)

permits,

it’

immediate

action

is

not

taken

to

remedy

the

above

described

circumstances.

Prairie

Power,

Jnc,

appreciates

the

opportunity

to

provide

this

response.

In

light

of

the

above,

we

request

that

the

Board

grant

JERO’s

Motion

for

Emergency

Rule

in

order

to

require

that

2009

NOx

allowances

he

distributed

to

impacted

sources,

and

grant

IFRO’s

Motion

for

Expedited

Action

on

TERG’s

Alternative

Proposal

in

order

to

bring

NOx

SW

Call

budget

units

into

the

CUR

NOx

Ozone

Season

Trading

Program

for

the

2010

control

period

and

beyond.

Respectfully

submitted,

Inc.

By:

Randy

Fisher,

Superintendent

Prairie

Power,

Inc.

13476

State

Highway

100

P0

Box

10

Pearl,

IL

62361

(217)

829-429t