ORIGINAL
    BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
    RECEIVED
    CLERK’S OFFICE
    JUN
    27
    2005
    STATE OF lLLh~JOi~
    R05-19
    Pollution Control
    i30~rr~
    (Rulemaking
    -
    Air)
    Proceedings
    held
    on
    June
    14th,
    2005,
    at
    10
    a.m.,
    at
    the
    offices
    of
    the
    Illinois Pollution Control Board,
    1021 North Grand
    Avenue East, North Entrance,
    Springfield,
    Illinois, before
    Amy
    Antoniolli,
    Chief
    Hearing
    Officer.
    Reported
    by:
    Beverly
    S.
    Hopkins,
    CSR,
    RPR
    CSR License No.:
    084-004316
    KEEFE
    REPORTING
    COMPANY
    11
    North
    44th
    Street
    Belleville,
    IL
    62226
    0
    IN
    THE
    MATTER
    OF:
    PROPOSED
    AMENDMENTS
    TO
    EXEMPTIONS
    FROM
    STATE
    PERMITTING
    REQUIREMENTS
    (35
    ILL.
    ADM.
    CODE
    201.146)
    Keefe Reporting Company

    1
    APPEARANCES
    2
    ILLINOIS POLLUTION CONTROL BOARD
    James R.
    Thompson Center
    3
    100 West Randolph Street,
    Suite 11-500
    Chicago,
    Illinois 60601
    4
    (312)
    814—3956
    BY:
    MS.
    1NY
    C. ANTONIOLLI,
    Hearing Officer
    5
    MR. NICHOLAS
    J. MELAS,
    Board Member
    MR. THOMAS E.
    JOHNSON, Board Member
    6
    MR. ANAND RAO, Technical Unit
    7
    Illinois ENVIRONMENTAL REGULATORY GROUP
    3150 Roland Avenue
    8
    Springfield,
    Illinois 62703
    (217)
    523-4942
    9
    BY:
    MS. KATHERINE D. HODGE, Executive Director
    10
    HODGE, DWYER
    & ZEMAN
    3150 Roland Avenue
    11
    Springfield,
    Illinois 62705
    (217)
    523—4900
    12
    BY:
    MS.
    N. LADONNA DRIVER, Co-counsel
    13
    ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
    1021 North Grand Avenue East
    14
    Springfield,
    Illinois 62794
    BY:
    MR.
    CHARLES E. MATOESIAN,
    Counsel
    15
    MR. DONALD E. SUTTON, Permit Section
    MR. ROBERT W. BERNOTEIT,
    FESOP
    16
    17
    18
    19
    20
    21
    22
    23
    24
    2
    Keefe Reporting Company

    1
    HEARING OFFICER ANTONIOLLI:
    Good morning and
    2
    welcome to
    the
    Illinois
    Pollution
    Control
    Board
    Springfield
    3
    offices.
    My
    name
    is
    Amy
    Antoniolli
    and
    I’ve
    been
    assigned
    as
    the
    4
    hearing
    officer
    in
    this
    rulemaking.
    The
    Board
    has
    captioned
    this
    5
    proceeding:
    Proposed
    Amendments
    to
    Exceptions
    from
    State
    6
    Permitting
    Requirements,
    Amendments
    to
    35
    Illinois
    Administrative
    7
    Code
    201.146,
    which
    the
    Board
    has
    docketed
    R05-19.
    8
    In this proceeding the Agency,
    the
    proponents
    are
    asking
    to
    9
    add
    four
    more
    categories
    to
    determine
    exemptions
    to
    state
    air
    10
    permitting
    requirements
    in
    Section
    201.146
    of
    the
    Board’s
    air
    11
    rules.
    The
    joint
    proponents
    of this rulemaking are the Illinois
    12
    Environmental
    Protection
    Agency
    and
    the
    Illinois
    Environmental
    13
    Regulatory
    Group.
    The
    Board
    accepted
    the
    proposal
    for
    hearing
    of
    14
    March
    17,
    2005, and today is the second hearing.
    The first
    15
    hearing
    was
    held
    on
    April
    12,
    2005,
    in
    the
    Board’s
    offices
    in
    16
    Chicago.
    17
    The
    purpose
    of
    today’s
    hearing
    is
    two-fold.
    First,
    this
    18
    rulemaking
    is
    subject
    to
    Section
    27 (b)
    of
    the
    Environmental
    19
    Protection
    Act.
    Section
    27 (b)
    requires
    the
    Board
    to
    request
    the
    20
    Department
    of
    Commerce
    and
    Economic
    Opportunity
    to
    conduct
    an
    21
    economic
    impact
    study
    on
    certain
    proposed
    rules
    prior
    to
    adoption
    22
    of
    those
    rules.
    If
    DCEO
    chooses
    to
    conduct
    the
    impact
    study,
    23
    then
    the
    DCEO
    has
    30
    to
    45
    days
    after
    such
    request
    to
    produce
    the
    24
    study
    of
    the
    economic
    impact.
    The
    Board
    must
    then
    make
    the
    3
    Keefe Reporting
    Company

    1
    impact
    study,
    or
    lack
    thereof,
    available
    to
    the public at least
    2
    20
    days
    before
    a
    public
    hearing
    on
    the
    economic
    impact
    of
    the
    3
    rule.
    As
    required
    to
    27(b)
    of
    the
    Act,
    the
    Board
    requested
    by
    a
    4
    letter dated March 28th,
    2005,
    that DCEO conduct
    an
    impact
    study
    5
    of
    this
    rulemaking.
    DCEO
    did
    not
    respond
    and
    the
    Board
    has
    6
    docketed
    the
    request
    with
    no
    response
    on
    May
    16,
    2005.
    The
    7
    second
    purpose
    of
    today’s hearing is
    to allow
    the
    proponents
    to
    8
    again
    testify
    and
    allow
    any
    members
    of
    the
    public
    who
    happen
    to
    9
    come
    ——
    I’l.
    just note for the record there are no members of the
    10
    public here at this time.
    But if
    any
    arrive
    during
    the
    process
    11
    of the hearing,
    then they can
    --
    they’ll have the opportunity to
    12
    testify
    or
    to
    ask
    questions
    of
    the
    proponents.
    Today’s
    13
    proceeding is governed by the Board’s procedural rules.
    All
    14
    information that is relevant and not repetitious
    or privileged
    15
    will
    be
    admitted
    to
    the
    record.
    16
    To my left is
    Member
    Nicholas
    Me.as,
    the
    board
    member
    that
    17
    is
    assigned
    to
    this
    rulemaking.
    Arid
    seated
    to
    my
    far
    right
    is
    18
    Member
    Johnson.
    Also
    present
    from
    the
    Board’s
    technical
    unit
    19
    today is Anand Rao.
    20
    The
    Board
    has
    received
    pre—filed
    testimony from one
    21
    witness,
    Mrs.
    Katherine
    Hodge,
    on
    behalf
    of
    the
    proponents.
    Mrs.
    22
    Hodge
    will
    testify
    on
    behalf
    of
    the
    proponents.
    23
    And
    before
    we
    begin,
    I’d
    like
    to
    note
    that
    since
    the
    first
    24
    hearing,
    we’ve
    received
    a
    couple
    of
    filings.
    One
    I’ll
    note
    that
    4
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    1
    the Agency has filed an errata of corrections to the proposed
    2
    rule
    language.
    There has
    also
    been
    filed
    corrections
    to
    the
    3
    transcript
    of
    the
    first
    hearing
    and
    answers
    by
    Mr. Don Sutton who
    4
    testified
    at
    the
    first hearing on behalf of the Agency to
    5
    questions
    that
    were
    raised
    at
    the
    first
    hearing.
    6
    Please note that any questions that may be posed by the
    7
    board
    members
    or
    board
    staff
    today
    are
    to
    help
    develop
    a
    more
    8
    complete record and do not reflect any bias.
    After Mrs. Hodge
    9
    has testified,
    anyone else may testify, again, regarding the
    10
    proposal.
    And
    like all witnesses who wish to testify,
    they will
    11
    be sworn and may be asked q~iestionsabout their testimony.
    And
    12
    we’ll
    conclude today’s
    ——
    and we’ll conclude today’s hearing with
    13
    a few procedural items.
    Member Melas, before we be begin, would
    14
    you
    like
    to
    add
    anything?
    15
    BOARD
    MEMBER
    MELAS:
    No.
    Just welcome everybody here today
    16
    and
    we
    look
    forward
    to
    some
    interesting
    information.
    Thank
    you.
    17
    HEARING OFFICER ANTONIOLLI:
    And
    for
    the
    court
    reporter
    who
    18
    is transcribing today’s proceedings, and especially in light of
    19
    the
    request for corrections
    that the Agency submitted,
    let’s
    20
    please speak up when we testify and ask questions,
    speak slowly
    21
    and clearly and please don’t speak over one another so that we
    22
    can produce a clear transcript.
    With that,
    are there any
    23
    questions about the procedures that we will follow today?
    If
    24
    there are none,
    then we can turn it over to the proponents for an
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    1
    opening
    statement,
    if
    any.
    2
    MR.
    MATOESIAN:
    I would just
    --
    Charles Matoesian with the
    3
    Illinois Environmental Protection Agency.
    I would just like to
    4
    state that with me today
    I have Mr. Don Sutton available to
    5
    answer questions.
    Mr.
    Bob Bernoteit if necessary to answer
    6
    questions.
    7
    This rulemaking is very narrow and direct focused.
    It has
    8
    four exemptions to
    the
    long list of existing exemptions
    under
    35
    9
    Illinois Administrative Code Part 201-146.
    These all involved
    10
    minimal activities with little or no admission increases.
    In
    11
    every case
    the
    proponent,
    that is
    the
    member of industry,
    the
    12
    odis
    (phonetic)
    is on them to correctly identify the amount of
    13
    emissions and they are responsible if there are any
    --
    if they
    14
    miscalculate or they misstate the amount of emission in order to
    15
    try to take advantage of an exemption.
    Compliance is not at
    16
    issue in any way.
    This
    is
    very
    focused.
    We
    do
    not believe that
    17
    this is
    a major rulemaking in the sense.
    Issues involving PM
    18
    2.5, particulate matter, or the eight-hour ozone standard, is
    19
    simply not relevant,
    neither are incinerators or coal fired power
    20
    plants
    so
    I
    would just simply state this is a very minor focused,
    21
    narrow
    rulemaking.
    And
    I
    will
    leave
    it
    at
    that
    at
    this
    point.
    22
    Thank
    you.
    23
    HEARING
    OFFICER
    ANTONIOLLI:
    Okay.
    Mrs.
    Driver.
    24
    MS.
    DRIVER:
    Donna
    Driver,
    outside counsel for the Illinois
    6
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    1
    Environmental Regulatory Group.
    Kathy
    Hodge,
    who
    is
    the
    2
    executive
    director
    of
    the
    group,
    will
    be
    presenting
    her
    pre-filed
    3
    testimony
    today.
    She
    will
    be
    reading
    that
    into
    the
    record
    as
    4
    filed.
    Again,
    we’re
    just
    pleased
    to
    be
    before
    the
    Board
    and
    5
    pleased
    to
    be
    coming
    before
    the
    Board
    with
    this
    rulemaking
    with
    6
    the
    Illinois
    Environmental
    Protection
    Agency
    and
    looking
    forward
    7
    to
    answering
    any
    questions
    you
    may
    have.
    8
    HEARING
    OFFICER
    ANTONIOLLI:
    Thank
    you.
    Is
    there
    anyone
    9
    else?
    And
    if
    not,
    at
    this
    time
    we
    can
    go
    ahead
    and
    swear
    in
    the
    10
    witness.
    11
    (The witness was sworn by the reporter.)
    12
    HEARING OFFICER ANTONIOLLI:
    You’re free
    to start with your
    13
    testimony.
    14
    MS.
    HODGE:
    Thank you very much.
    And before
    I go over my
    15
    pre-filed testimony,
    just
    --
    just a follow-up to the Agency’s
    16
    comments.
    We concur that, you know,
    it’s minor but
    ——
    but also
    I
    17
    want to assure the Board that
    ——
    that
    these
    are
    still
    very
    18
    important exemptions for our member companies.
    You know,
    we
    19
    would like to see the Board move ahead expeditiously to implement
    20
    exemptions.
    21
    And
    with that I’ll go directly to my pre-filed testimony.
    22
    Thank you for the opportunity
    to offer testimony in this
    23
    proceeding.
    My name is Katherine Hodge, and I’m the executive
    24
    director of the Illinois Environmental Regulatory Group, which I
    7Q
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    1
    will refer to as IERG.
    IERG is an affiliate of the Illinois
    2
    State Chamber of Commerce.
    As
    I stated during
    the
    prior
    hearing
    3
    in this matter, over the last several years, IERG has worked with
    4
    the Illinois EPA to identify potential areas where innovation and
    5
    improvements
    to
    environmental
    permitting
    would
    assist
    both
    the
    6
    State and the regulated community.
    In my testimony today,
    I
    7
    would like to highlight some impOrtant points about the
    air
    8
    permitting improvements before the Board in this proceeding.
    9
    First,
    I’d like to summarize
    the
    nature of
    the
    proposed air
    10
    permit exemptions.
    Proposed subsection
    (hhh) would allow the
    11
    replacement or addition of air pollution control devices in
    12
    certain limited circumstances, such as where
    the emission unit
    13
    .
    being controlled is already permitted by Illinois EPA and has
    14
    operated in compliance,
    the new control equipment will provide
    15
    better equal emission control and will have the required
    16
    monitoring equipment,
    etc.
    17
    Proposed
    subsection
    (iii)
    pertains
    to
    Federally
    Enforceable
    18
    State
    Operating
    Permit,
    or “FESOP,” sources and a similar
    19
    provision,
    subsection
    (jjj),
    applies to Lifetime Operating Permit
    20
    sources.
    These provisions allow replacement, modification or
    21
    addition of new emission units at such sources and certain
    22
    circumstances.
    These circumstances are limited to potential
    23
    emissions from the project being less than a very low threshold
    24
    amount,
    no
    change
    to
    the
    sources
    “nonmajor”
    status
    under
    Title
    V,
    8
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    1
    no
    applicability
    of
    certain
    federal
    requirements
    (such
    as
    under
    2
    the
    New
    Source
    Performance
    Standards)
    and
    no
    outstanding
    3
    specified
    compliance
    and
    enforcement
    matters.
    Each
    of
    these
    4
    provisions
    also
    has
    its
    own
    restrictions,
    such
    as
    the
    hazardous
    5
    air pollutant limit for the FESOP exemption
    and
    the notification
    6
    provision for emission increases of certain levels for Lifetime
    7
    Operating Permit sources.
    8
    Finally, proposed subsection
    (kkk) pertains
    to
    Clean
    Air
    9
    Act Permit Program,
    or “CAAPP,” sources.
    This provision would
    10
    allow CAAPP sources
    to construct or modify insignificant
    11
    activities without a construction permit.
    12
    I would now like
    to discuss the benefits of the proposed
    13
    exemptions,
    as
    well
    as
    how
    protective
    the
    proposed
    permit
    14
    exceptions
    are.
    First,
    the
    proposed permit exemptions were
    15
    developed to help reduce the resources the Illinois EPA must
    16
    devote to
    permit
    projects that have relatively inconsequential
    17
    emissions.
    At the same time, these proposed permit exemptions
    18
    would reduce the delay facilities must incur in initiating such
    19
    minor projects while the permitting process takes place.
    20
    There’s little question that Illinois EPA would routinely
    21
    issue permits for the projects that qualify for these proposed
    22
    permit exemptions.
    Even though there could be emission increases
    23
    involved,
    Illinois EPA would ultimately issue permits for these
    24
    types of projects.
    Thus, putting a permit exemption in place
    Keefe Reporting Company

    1
    does not change what occurs, with respect to emissions
    to the
    2
    environment, when a project is instituted.
    Rather,
    these permit
    3
    exemptions simply remove
    the
    requirement
    to
    obtain
    a
    permit
    4
    before the project begins
    and
    a minor
    ——
    and
    a minor emissions
    5
    increase,
    if any, occurs.
    6
    Second,
    the four exemptions at issue here are only for the
    7
    requirements
    to
    obtain
    a
    state
    construction
    or
    operating
    permit.
    8
    These
    exemptions
    have
    absolutely
    no
    bearing
    whatsoever
    on
    9
    compliance with any substantive regulatory requirement.
    Assuming
    10
    that a proposed activity,
    such as a new emission unit, would fit
    11
    one of these permit exemptions, compliance would still be
    12
    required with,
    for example,
    the Board’s particulate matter
    13
    provisions at 35 Illinois Administrative Code Part 212,
    or the
    14
    volatile organic material provisions at 35 Illinois
    15
    Administrative Code Part 218.
    16
    Furthermore,
    as
    I just mentioned, applicability of
    17
    substantive regulatory requirement,
    such as New Source
    18
    Performance Standards, could mean that a proposed permit
    19
    exemption is not even available for a particular project under
    20
    the proposed permitting amendments.
    I would add that the first
    21
    paragraph of Section 201.146 currently prohibits
    the use of any
    22
    of
    the
    permit exemptions where the project at issue is regulated
    23
    by Nonattairunent New Source Review, Prevention of Significant
    24
    Deterioration, New Source Performance Standards
    or National
    10
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    1
    Emission
    Standards
    for
    Hazardous
    Air
    Pollutants.
    Thus,
    where
    2
    these
    federal
    regulatory
    schemes
    are
    at
    issue,
    these
    exemptions
    3
    will be unavailable and
    the
    permit process will still occur.
    4
    Third,
    the approach for the proposed permit exemptions will
    5
    be the
    same,
    if not more stringent, than the current permit
    6
    exemptions at 35 Illinois Administrative Code Section 201.146.
    7
    The facility must evaluate the permit exemptions
    and
    make
    its
    own
    8
    determination,
    at
    its
    own
    risk,
    as
    to
    whether
    the
    exemptions
    9
    apply to a particular project.
    This is precisely how the permit
    10
    exemption scheme has worked, under Section 201.146,
    in the past.
    11
    However, unlike current permit exemptions,
    there
    is
    a compliance
    12
    requirement for proposed subsections
    (hhh),
    (iii)
    and
    (jjj).
    13
    This requirement sets a particularly high bar for new,
    modified
    14
    or
    replacement
    units
    at
    Lifetime
    Operating
    Permit
    sources
    and
    15
    Federally
    Enforceable
    State
    Operating
    Permit
    sources,
    in
    that
    a
    16
    pending specified compliance inquiry or enforcement action
    17
    prevents use of the permit exemption, even if the compliance
    18
    inquiry or enforcement action is completely unrelated to
    the
    19
    emission unit at issue in the proposed project.
    There is no
    20
    similar
    restriction
    for
    any
    of the current permit exemptions in
    21
    Section 201.146.
    Thus,
    these proposed provisions contain more
    22
    than adequate safeguards for compliance.
    ,
    23
    In addition,
    in
    the
    case
    of
    proposed
    subsection
    24
    (jjj)
    (1) (b), the facility will be required to provide prior
    110
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    1
    notification
    to
    Illinois
    EPA
    before
    initiating
    the
    proposed
    2
    project.
    There
    is
    no
    similar
    requirement
    in
    any
    of
    the
    current
    3
    permit exemptions in Section 201.146.
    Also,
    in
    the
    case
    of
    major
    4
    sources, Illinois EPA will be informed of the projects upon
    5
    application for renewal for the facility’s operating permit,
    as
    6
    required by Section 201.212.
    7
    Finally,
    the current permit exemptions in Section 201.146
    8
    are only for certain specified categories of projects.
    Thus,
    if
    9
    a proposed project does not fit neatly within one of those
    10
    exemption categories, but has virtually no emissions,
    a permit is
    1’l
    required, even though that project may have much fewer emissions
    12
    than would occur from projects that fit the current categorical
    13
    exemptions.
    This is an impractical result when considering
    14
    impacts to the environment,
    Illinois EPA, resources required to
    15
    issue such permits and the
    time delays involved for such projects
    16
    while the permit is applied for and issued.
    17
    We have surveyed surrounding states within USEPA Region V
    18
    and
    have
    determined
    that
    Illinois is the only state that does not
    19
    have a permit exemption for projects that emit below a certain
    20
    threshold amount.
    Further,
    the thresholds we are proposing here
    21
    are extremely low when compared to similar provisions in the
    22
    other Region V states.
    Accordingly,
    as USEPA has approved higher
    23
    permit exemption thresholds in other states,
    the
    modest levels
    24
    proposed here should easily pass muster with USEPA.
    12
    Keefe Reporting Company

    1
    For
    the
    reasons
    I have discussed,
    the
    proposed permit
    2
    exemptions would benefit Illinois EPA in better allocating its
    3
    permitting resources, while allowing very minor projects
    to
    4
    proceed without the delay
    of
    permitting.
    Significant
    safeguards
    5
    have
    been
    instituted
    in
    these
    proposed
    exemptions
    for
    emissions
    6
    impact,
    compliance
    and
    triggers of federal programs.
    In the
    7
    limited situations posed in these exemptions, permitting would
    8
    provide
    no
    added
    benefit
    to
    the
    air
    permitting
    or
    regulatory
    9
    scheme.
    We urge the Illinois Pollution Control Board to move
    10
    forward
    expeditiously
    with
    the
    proposed
    rulemaking.
    I
    would
    be
    11
    happy to answer any questions that the Board may have.
    12
    HEARING OFFICER ANTONIOLLI:
    Okay.
    Thank you.
    13
    MS. DRIVER:
    If
    I could I’d just like
    to move that the
    14
    pre-filed testimony of Kathy Hodge that was filed on June 1st be
    15
    entered into the record as an exhibit.
    16
    HEARING
    OFFICER
    ANTONIOLLI:
    Okay.
    Are
    there any
    17
    objections?
    There are no objections,
    I will enter the pre-filed
    18
    testimony of Katherine D. Hodge on behalf of the Illinois
    19
    Environmental Regulatory Group in support of R05-19
    as Exhibit 1.
    20
    Okay.
    And we can move onto questions if Lhere are any?
    Any
    21
    questions of Mrs. Hodge right now?
    Okay.
    22
    MR. MATOESIAN:
    None for me.
    23
    HEARING OFFICER ANTONIOLLI:
    And
    the Agency, would you like
    24
    to add anything?
    .
    13Q
    Keefe Reporting Company

    1
    MR.
    MATOESIAN:
    No, not really.
    2
    BOARD
    MEMBER
    RAO:
    What
    is an errata sheet?
    3
    HEARING OFFICER ANTONIOLLI:
    An errata sheet, it’s filed as
    4
    part of
    the
    record.
    Okay.
    Well, let’s go off the record for one
    5
    minute.
    6
    BOARD
    MEMBER
    MELAS:
    Oh,
    I have
    --
    7
    HEARING
    OFFICER ANTONIOLLI:
    You do have one?
    8
    BOARD MEMBER
    MELAS:
    One.
    9
    HEARING OFFICER ANTONIOLLI:
    Well,
    continue.
    10
    BOARD MEMBER MELAS:
    I presume that it would probably be
    11
    the Agency that might answer this better.
    Throughout your
    12
    testimony and throughout the whole period we’ve been talking
    13
    about these minor increases,
    that word de minimis come in several
    14
    times.
    Without necessarily making this a joke, how many de
    15
    minimises,
    not to do the de maximus,
    or is
    this
    ——
    or is this
    16
    like asking how many angels can dance on
    a pin and
    ——
    17
    MR.
    SUTTON:
    And
    do
    I need to swear
    --
    18
    HEARING OFFICER
    MELAS:
    Yes.
    19
    MR. SUTTON
    --
    in?
    I’m Don Sutton.
    I’m the manager from
    20
    the permit section.
    21
    HEARING
    OFFICER ANTONIOLLI:
    Let’s swear you in.
    22
    (The witness was sworn by the reporter.)
    23
    BOARD
    MEMBER
    MELAS:
    What I’m asking is what might
    --
    what
    24
    in your estimation might be the cumulative effect of a whole
    14
    Keefe Reporting Company

    1
    number
    of these because
    ——
    2
    MR.
    SUTTON:
    Well,
    that’s a decent question.
    And
    there are
    3
    regulatory schemes that would kick in that this doesn’t avoid.
    4
    So your determination whether you’re a major source under USEPA
    5
    regulations will require
    to
    have
    a
    federal
    operating
    permit
    are
    6
    based on your allowable emissions regardless
    ——
    7
    BOARD
    MEMBER
    MELAS:
    Right.
    8
    MR.
    SUTTON:
    --
    of whether you have a permit or not.
    So
    9
    there would be a point in
    time if you had enough of these,
    that
    10
    you could actually trigger then a higher level requirement.
    And
    11
    so these are existing sources and they have to tell us what they
    12
    currently have
    and,
    I mean,
    if they since are getting close,
    they
    13
    will contact us.
    If we happen to be doing a field inspection and
    14
    note they seem to have an inordinate number of these things, you
    15
    can get there.
    But keep in mind we’re talking somewhere
    ——
    16
    anywhere between a half a ton to two tons at most
    and
    most
    17
    regulatory triggers, besides hazardous pollutants, will start
    18
    after June 15th will be the 100 ton level.
    So you could add
    19
    quite a few before you get there.
    Most of our Lifetime Emission
    20
    sources in aggregate have less than 25 tons of total of all
    21
    pollutants and that’s what they’re allowed to
    emit,
    and
    actual
    22
    emissions range two to five
    tons a year.
    So there is a lot of
    23
    room for growth before they actually get into regulatory scheme
    24
    to require a higher permit.
    .
    15
    Keefe Reporting Company

    1
    BOARD
    MEMBER
    MELAS:
    What
    is
    the
    order
    of
    magnitude
    of
    the
    2
    number
    of
    emission
    sources in the State of
    Illinois
    that could
    3
    possibly be implementing these exemptions?
    4
    MR. SUTTON:
    Well,
    to a certain degree all
    the sources in
    5
    the State of Illinois could take advantage of it,
    and
    we have
    6
    6,800 roughly sources.
    Thus,
    true smaller guys are in
    ——
    I was
    7
    actually,
    I think, provided numbers in
    the
    record, we have about
    8
    roughly 4,900 sources that have less
    --
    have a permit that keeps
    9
    them
    less than 2,500.
    10
    BOARD
    MEMBER
    MELAS:
    Less than 25.
    11
    MR.
    SUTTON:
    25 tons
    a year.
    So
    the
    vast majority of the
    12
    sources.are smaller sources.
    We’d like to say the largest 250
    13
    sources emit
    95 percent of the air pollutions in the State of
    14
    Illinois.
    15
    BOARD MEMBER MELAS:
    So if
    --
    without putting words
    in your
    16
    mouth,
    actually there are enough permits, excuse me, enough
    17
    provisions made, enough safeguards so that if it were to go
    18
    beyond a certain point, there are provisions with which the
    19
    Agency
    can
    then act?
    20
    MR. SUTTON:
    Right.
    There are ball bat provisions on the
    21
    federal requirement that would make
    --
    yeah,
    that would
    kick
    them
    22
    into a higher regulatory scheme.
    We as a state do not have a
    23
    right
    to
    write
    a
    federal
    requirement,
    so
    those
    exist
    of
    24
    regardless what we do.
    16
    Keefe Reporting Company

    1
    BOARD
    MEMBER
    MELAS:
    Thank
    you.
    2
    HEARING
    OFFICER
    ANTONIOLLI:
    So
    then
    in
    your
    research
    has
    3
    either
    the
    Agency,
    or
    either
    seen
    in
    other
    states,
    any
    limit
    to
    4
    them
    a
    number
    times
    one
    facility
    could
    ——
    one
    source
    could
    take
    5
    advantage
    of
    exemptions
    --
    threshold
    exemptions?
    6
    MS. HODGE:
    We’re not aware of that kind of limitation in
    7
    the rules in the other states but I’ve not reviewed specifically
    8
    for that point.
    But in our prior review, we don’t think there’s
    9
    anything
    there.
    10
    HEARING
    OFFICER
    ANTONIOLLI:
    Okay.
    11
    BOARD
    MEMBER RAO:
    Asking clarification for Mrs. Hodge, on
    12
    page
    3
    and
    4
    you
    refer
    to
    some
    of
    the
    federal
    programs
    and
    state
    13
    that these federal regulatory schemes are at issue these
    14
    exemptions would not be, you know, available and the permit
    15
    process would still take place.
    And Hr.
    Sutton just mentioned
    16
    that all
    the
    6,900 permitted sources may take advantage of this.
    17
    I was just wanting to know if this is a federal permit involved
    18
    then can
    they
    use
    this
    exemption
    for
    minor
    modifications
    and
    19
    things like that or not?
    20
    MS.
    HODGE:
    Is your question whether a Title V source could
    21
    22
    BOARD MEMBER RAO:
    Yes, yes.
    23
    MS. HODGE:
    --
    could rely upon that?
    Well, there are
    24
    limitations and you have
    to look at each exemption independently.
    17Q
    Keefe Reporting~Company

    1
    The one that
    I think Title V resource will rely upon the most,
    of
    2
    course,
    is the one for the insignificant activity.
    And
    right now
    3
    under Title
    V
    operating
    permits,
    these
    sources
    are
    allowed
    to
    4
    make these changes without updating their operating
    --
    their
    5
    Title V operating permit,
    some require notice,
    some do not.
    This
    6
    would just simply allow them to make the changes without going
    7
    through the construction permit process.
    But again,
    as
    I said,
    8
    in my testimony, you know,
    there would be notification to the
    9
    Agency for some and the Agency would be notified of all the
    10
    changes at the time of renewal.
    11
    BOARD
    MEMBER
    RAO:
    Thank you.
    12
    HEARING
    OFFICER
    ANTONIOLLI:
    Is there anything further?
    13
    Okay.
    Then let’s
    go off the record.
    14
    (A discussion was held off
    the record.)
    15
    HEARING OFFICER ANTONIOLLI:
    For
    the
    record the Board will
    16
    accept public comment on this proposal until July 14th,
    2005.
    17
    There will be an additional public comment period of at least 45
    18
    days after
    the
    Board adopts these rules for first notice.
    19
    Today’s hearing concludes
    the hearing scheduled by the Board in
    20
    this matter but any party may request an additional hearing
    21
    pursuant to Section 102.412(b)
    of the Board’s procedural rules.
    22
    We expect to have
    the transcript of today’s hearing by
    23
    approximately eight business days which brings it to June 24th,
    24
    2005.
    Soon after we receive the transcript,
    the Board will post
    18
    Keefe Reporting Company

    1
    it to our website, which is www.ipcb.state.il.us,
    there the
    2
    transcript,
    as well as the proponents’ proposal,
    and
    all of
    the
    3
    Board Orders
    throughout this proceeding will be viewable
    and
    4
    downloadable at no charge.
    Alternatively,
    you can order a copy
    5
    of the transcript from the Clerk of
    the Board at 75 cents per
    6
    page.
    7
    Anyone can file
    a public comment in this proceeding with
    8
    the Clerk of the Board but please note that when filing a public
    9
    comment, you serve all the people on the service list and please
    10
    call the Board for the most recent version of the service list.
    11
    Today we have brought copies of the current service list with us
    12
    today.
    If there’s nothing further,
    I wish to thank you all for
    13
    your comment and testimony and questions and this hearing
    is
    14
    adjourned.
    Thank you.
    15
    16
    17
    18
    19
    20
    21
    22
    23
    24
    19Q
    Keefe Reporting Company

    STATE OF ILLINOIS
    COUNTY OF FAYETTE
    CERTI
    FICATE
    I, BEVERLY S.
    HOPKINS,
    a Notary Public in and for the
    County of Fayette,
    State of Illinois, DO HEREBY CERTIFY that the
    foregoing 19 pages comprise a true,
    complete and correct
    transcript of
    the
    proceedings
    held
    on
    the
    14th day of June A.D.,
    2005,
    at the Illinois Pollution Control Board, 1021 North Grand
    Avenue East,
    North Entrance, Springfield,
    Illinois, in the matter
    of:
    Proposed Amendments to
    Exemptions
    From
    State
    Permitting
    Requirements
    (35 Ill. Ada.
    Code 201.146)
    in proceedings held
    before Hearing Officer Amy Antoniolli, and recorded in machine
    shorthand by me.
    IN WITNESS WHEREOF I have hereunto set my hand and affixed
    by Notarial Seal
    this 20th day of June A.D.,
    2005’.
    rIA~Z~1
    ___
    ~
    BEVERLY
    S
    HOPKINS
    ~
    Beverly S. Hopkins
    Certified
    Shorthand
    Reporter
    and
    Registered Professional Reporter
    CSR License No.
    084-004316
    KEEFE
    REPORTING
    COMPANY
    20
    Keefe Reporting Company

    A
    ____
    about 5:11,23
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    3:19 4:3 9:9
    16:19
    action 11:16,18
    activities 6:10 9:11
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    10:10 18:2
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    15:21
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    3:9
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    added 13:8
    addition 8:11,21
    11:23
    additional
    18:17,20
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    11:22
    adjourned 19:14
    Adm 1:8 20:13
    Administrative
    3:6
    6:9
    10:13,15
    11:6
    admission 6:10
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    18:18
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    19:4
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    1:13 2:4 3:3
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    6:5,5
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    1:14
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    14:3,7,9,21
    17:2
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    17:9
    18:12
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    applicability
    9:1
    10:16
    application
    12:5
    applied
    12:16
    applies 8:19
    apply
    11:9
    approach 11:4
    approved
    12:22
    approximately
    18:23
    April 3:15
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    arrive
    4:10
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    5:11
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    17:11
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    7:17
    available 4:1 6:4
    10:19
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    1:13 2:7,10
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    15:3
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    A.D 20:9,17
    a.m 1:11
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    b
    11:24
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    15:6
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    10:8
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    6:16
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    17:11
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    2:14 6:24
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    18:2
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    Co-counsel 2:12
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    11:5,11,20
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    Deterioration
    10:24
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    11:8
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    12:18
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    5:7
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    13:1
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    1:13 2:13 20:11
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    10:10 11:1,19
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    1~1
    Keefe Reporting
    Company

    emissions 6:13 8:23
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    10:1,4
    12:10
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    emit 12:19 15:21
    16:13
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    15:9
    16:16
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    enter 13:17
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    environment 10:2
    12:14
    environmental 2:7
    2:13 3:12,12,18
    6:3 7:1,6,24 8:5
    13:19
    EPA
    8:4,13 9:15,20
    9:23 12:1,4,14
    13:2
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    Keefe Reporting Company

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