1 BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
    2
    3
    4 IN THE MATTER OF:
    5
    6 REVISIONS TO ANTIDEGRADATION
    7 RULES: 35 ILL. ADM. CODE 302.105, R01-13
    8 303.205, 303.206, and (Rulemaking-Water)
    9 106.990-106.995
    10
    11
    12
    13 Proceedings held on December 6, 2000, at 10:00 a.m., at the
    14 Illinois Pollution Control Board, 600 South Second Street, Suite
    15 403, Springfield, Illinois, before Marie Tipsord, Hearing
    16 Officer.
    17
    18
    19
    20
    21 Reported by: Darlene M. Niemeyer, CSR, RPR
    CSR License No.: 084-003677
    22
    23 KEEFE REPORTING COMPANY
    11 North 44th Street
    24 Belleville, IL 62226
    (618) 277-0190
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    1 A P P E A R A N C E S
    2
    3
    G. Tanner Girard, Ph.D., Board Member
    4 Ronald C. Flemal, Ph.D., Board Member
    Marili McFawn, Board Member
    5
    Alisa Liu, Environmental Scientist
    6
    7 ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
    BY: Connie L. Tonsor
    8 Associate Counsel
    Division of Legal Counsel
    9 1021 North Grand Avenue East
    Springfield, Illinois 62794-9276
    10 On behalf of the Illinois EPA.
    11 ILLINOIS ENVIRONMENTAL PROTECTION AGENCY PANEL
    PRESENT:
    12 Toby Frevert
    Stephen F. Nightingale
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    1 I N D E X
    2 WITNESS PAGE NUMBER
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    TOBY FREVERT 15
    5
    6 ROBERT MOORE 65
    7
    DEIRDRE K. HIRNER 78
    8
    9 ROBIN L. GARIBAY 97
    10
    GREGORY CARGILL 115
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    12 FREDRIC ANDES 136
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    1 E X H I B I T S
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    3 NUMBER MARKED FOR I.D. AND ENTERED
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    Hearing Exhibit 7 17
    5 Hearing Exhibit 8 63
    Hearing Exhibit 9 63
    6 Hearing Exhibit 10 63
    Hearing Exhibit 11 63
    7 Hearing Exhibit 12 64
    Hearing Exhibit 13 67
    8 Hearing Exhibit 14 67
    Hearing Exhibit 15 75
    9 Hearing Exhibit 16 75
    Hearing Exhibit 17 77
    10 Hearing Exhibit 18 114
    Hearing Exhibit 19 124
    11 Hearing Exhibit 20 127
    Hearing Exhibit 21 130
    12 Hearing Exhibit 22 130
    Hearing Exhibit 23 130
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    1 P R O C E E D I N G S
    2 (December 6, 2000; 10:00 a.m.)
    3 HEARING OFFICER TIPSORD: Good morning, everyone. I am
    4 Marie Tipsord and I have been appointed by the Board to serve as
    5 the Hearing Officer in this proceeding, entitled, In the Matter
    6 of: Revisions to Antidegradation Rules: 35 Ill. Adm. Code
    7 302.105, 303.205, 303.206, and 106.990 through 106.995. This has
    8 been docketed as R01-13.
    9 With me today, to my immediate right is Dr. Tanner Girard,
    10 presiding Board Member in this matter.
    11 Then to his right is Dr. Ronald C. Flemal.
    12 To my immediate left is Alisa Liu, of our technical staff.
    13 And to her left is Board Member Marili McFawn.
    14 BOARD MEMBER McFAWN: Good morning.
    15 HEARING OFFICER TIPSORD: At this time, Dr. Girard, is
    16 there anything you would like to say?
    17 BOARD MEMBER GIRARD: Yes. Good morning. On behalf of the
    18 Board, I welcome everyone to the second hearing on the proposed
    19 amendments to the Board's water antidegradation regulations. We
    20 want to thank all of the participants, both for attendance at
    21 these hearings and for the time and effort reflected in the
    22 excellent prefiled testimony. Both the testimony and questions
    23 that follow will be carefully considered by the Board, and
    24 hopefully will give us a clear picture when drafting the first

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    1 notice proposal. Let's get to work. Thank you.
    2 HEARING OFFICER TIPSORD: The purpose of today's hearing is
    3 to hear answers to the prefiled questions submitted to the
    4 Agency. And also to hear prefiled testimony by Robert J. Moore,
    5 Executive Director of the Prairie Rivers Network. Also Deirdre
    6 K. Hirner, with the Illinois Environmental Regulatory Group.
    7 Also Robin L. Garibay -- is that correct? Am I close? Principal
    8 of the Advent Group. And the Illinois Association of Wastewater
    9 Agencies. And I believe that's all of the prefiled testimony
    10 that I have at this time. That will be the order that I
    11 anticipate taking the presenters.
    12 As time goes on today, we will see how long the questioning
    13 takes and we will make a decision at that time as to whether or
    14 not we will take the testimony as if read or if we will have the
    15 testimony read into the record.
    16 I would like to point out that on November 29th the Board
    17 received prefiled questions from the Illinois Steel Group, and we
    18 also received prefiled testimony from the Illinois Association of
    19 Wastewater Agencies. I will allow both of those filings in.
    20 However, I will wait until the end of the day to hear the
    21 testimony of the Illinois Association of Wastewater Agencies.
    22 And it has also been asked that we wait until the end of the day
    23 to listen to the questions from the Illinois Steel Group.

    24 As I said, we will start with the Agency answering the
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    1 prefiled questions, and then we will proceed with the remaining
    2 prefiled testimony. Anyone may ask a question of the testifiers,
    3 including the Agency. I ask that you raise your hand and wait
    4 for me to acknowledge you, identify yourself for the record, then
    5 ask your question. I ask that you speak one at a time. If you
    6 speak over one another, the court reporter will not be able to
    7 get your questions.
    8 Please note that any questions asked by a Board Member or
    9 staff are intended to help build a complete record and not to
    10 express any preconceived notions or bias. If there is anyone
    11 here who wishes to testify, but did not prefile testimony, I ask
    12 that you see me at a break. That will only happen if we have
    13 time at the end of the day. And based on what I have seen, I am
    14 not sure that is going to be possible. But please see me, and we
    15 will see what we can work out.
    16 At the side of the room there are signup sheets for the
    17 notice and service lists. I will have copies of the current
    18 service and notice lists available for you. I don't think they
    19 are out there quite yet. If you wish to be on the service list,
    20 you will receive all pleadings and prefiled testimony. You must
    21 also serve your filings upon all persons on the service list. If
    22 you are on the notice list, you will receive all Board orders and
    23 Hearing Officer orders.

    24 Also, pending before the Board is a motion for a third
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    1 hearing. I will not be ruling on that motion today, as it was
    2 directed to the Board. The time to respond to that motion also
    3 runs today. Under Board procedures you have seven days to
    4 respond to a motion. If anyone needs additional time to respond
    5 to the motion, I can grant an additional time to respond to the
    6 motion. So if that's the case, I ask that you please let me
    7 know. And I think that there -- was there something that you
    8 wanted to discuss right now, Mr. Ettinger?
    9 MR. ETTINGER: Well, not necessarily right now, but I guess
    10 I wanted to talk about how we might best go through the rest of
    11 the hearing in the most orderly manner and in a way that would be
    12 most useful for the Board to present the ideas that the various
    13 parties have made for alternative language or additional
    14 exceptions that they wanted.
    15 My first inclination, when I received the motion by IERG,
    16 was to object to it. But I think that we are clearly going to
    17 have to have some further discussions here. I am not sure
    18 whether a hearing is the right way to go. What we might want to
    19 do is instead set up a briefing schedule that would then be
    20 followed with a hearing or an oral argument, however you want to
    21 phrase it, in which the Board Members would ask people who have
    22 made specific proposals about those proposals, so that the Board

    23 would have the maximum amount of information available to it.
    24 So I don't know whether -- it has been brought up now. I
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    1 don't know whether you want to discuss it now. I do think that
    2 we are not that far apart as to suggestions for procedures. I
    3 don't want another open-ended hearing, but I think after we brief
    4 the thing and the various parties who have specific word changes
    5 or proposals or exceptions proposed and have had an opportunity
    6 to put those down on paper, that there should be another
    7 proceeding then after that in which the Board can ask about those
    8 proposals.
    9 HEARING OFFICER TIPSORD: So if I hear you correctly, what
    10 you would have me take to the Board on your behalf is that you do
    11 not necessarily object to a third hearing, but what you would
    12 like to see is it limited in scope.
    13 MR. ETTINGER: What I would like basically is to see a
    14 briefing schedule first. I don't know if you want to call it a
    15 briefing schedule, a schedule for filing written testimony or
    16 briefs, say, in mid January. Then sometime in February, after
    17 the Board has had time to digest that and go through everyone's
    18 list and say we don't want to use this word here and we would
    19 rather use this word, and strike this phrase, you would then be
    20 able to ask people about that, and then we would be able to wrap
    21 this up.
    22 HEARING OFFICER TIPSORD: Okay. Are there any other

    23 comments?
    24 MS. HODGE: I would just like to respond briefly to Mr.
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    1 Ettinger. My name is Katherine Hodge and I represent the
    2 Illinois Environmental Regulatory Group. I did file the motion
    3 for the third hearing on behalf of IERG. I don't have any huge
    4 problem with what Mr. Ettinger has suggested, except that that
    5 next process, to me, sounds very much like another hearing, an
    6 opportunity for not only the Board to ask questions, but for
    7 other members of the public, Agency representatives, other
    8 participants to ask questions.
    9 As we stated in our motion, IERG does intend to come
    10 forward with some revisions to the Agency's proposal that is
    11 before the Board right now. We thought that the best means to be
    12 able to present that and then to allow others to ask questions of
    13 IERG and its witnesses would be in a hearing. I don't think we
    14 have any great objection to maybe limiting the scope a little
    15 bit. But I feel like we still need that public participation
    16 process where others do have an opportunity to ask questions, and
    17 we have an opportunity to offer the support that we think is
    18 necessary for our proposed revisions.
    19 MR. ETTINGER: I don't think we disagree much at all except
    20 to say a lot of this -- it is a kind of odd proceeding, in that
    21 generally the Board is dealing with scientific questions of fact.

    22 A lot of the things are like that, you know, does this particular
    23 chemical affect children. And those are scientific questions,
    24 and most of your witnesses are fact witnesses.
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    1 Here in many cases we are really discussing how to best
    2 word matters, how things fit in best with statutes, and the legal
    3 questions are actually -- in a set of procedures, the legal
    4 questions are actually more significant than the factual
    5 questions, which in many cases are fairly limited.
    6 So what I would like to see is for us all to make sure that
    7 before we have another hearing everyone has briefed their
    8 proposal, put specific language in front of the Board on all of
    9 the points that they want to raise, so that we don't have another
    10 sort of, you know -- not that we have -- everything to this point
    11 has been useful. But what I don't want is a sort of nebulous set
    12 of additional hearings in which people emote on the Agency
    13 proposal without putting forth specific language of their own.
    14 That I would object to.
    15 HEARING OFFICER TIPSORD: If the Board were to agree to a
    16 third hearing -- and this is all hypothetical. I have to be
    17 perfectly honest. I have not even discussed this with my own
    18 Board Member at any length at this time. I guess so that we
    19 could proceed in a timely fashion, if the Board were to grant the
    20 motion, which they could arguably do even tomorrow at the Board
    21 meeting, what kind of time frame? You mentioned mid January for

    22 filing of any additional, what I would consider testimony,
    23 basically, or language. You mentioned mid January.
    24 So my question to all of you is does mid January work with
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    1 a potential hearing in February? Is that going to give enough
    2 time? I certainly think that the Board wants to proceed as
    3 expeditiously as we can while doing a complete record here. So I
    4 don't want to push it back much further than that if the Board
    5 agrees to a third hearing. But I don't also want to put us in a
    6 position where we can't do anything at a third hearing. So for
    7 what it is worth, is January feasible?
    8 MS. TONSOR: I think that the Agency needs to state its
    9 position on the motion, just to clarify. The Agency also hopes
    10 that this proceeding will proceed as expeditiously as it can and
    11 as soon possible. And, therefore, we think that we should keep
    12 to a schedule if we need to set a third hearing of doing so. If
    13 IERG does propose amendments or proposes alternate language, I
    14 think that the Agency will need to talk about that language and
    15 clarify it through a hearing process.
    16 The scheduling of it becomes important in that depending
    17 upon what their language is, we will need more than a week or two
    18 to fully analyze the language and then prepare responses to it.
    19 February, for my purposes, I am going to be gone for a week of
    20 that month. I have a board hearing that is going to take two

    21 days on that month, and then I am the hearing officer in another
    22 proceeding, the Agency facility planning area.
    23 So scheduling another set of hearings in February with
    24 responses due may be not a good month. If we could do so in
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    1 January, it would probably work out. However, that also cuts us
    2 short in actually responding. So I think we first need to know
    3 from the regulatory group when they think they can get their
    4 proposal put together and filed if they are going to file it.
    5 HEARING OFFICER TIPSORD: I do apologize. I realize this
    6 is highly speculative since the Board has not ruled. But I
    7 really, as I said, want to do this as expeditiously as possible.
    8 If the Board were to, by chance, rule tomorrow, I hope we could
    9 have something set up fairly quickly after that.
    10 So, Ms. Hodge, do you think -- when does the regulatory
    11 group anticipate their ability to have any potential language?
    12 MS. HODGE: I think we could certainly submit something in
    13 January. Again, you know, I am concerned with the upcoming
    14 holidays and people's availability. But I think we could submit
    15 something. I think to submit something and then have a hearing
    16 in January is really pushing it for everybody, though. So I
    17 would ask that, you know, the hearing time be postponed just a
    18 little bit. But, again, we are not interested in delaying this
    19 either. We are interested in seeing this move along quickly. I
    20 think we could commit to getting something in sometime in mid to

    21 late January.
    22 HEARING OFFICER TIPSORD: Okay. That being said, let me
    23 just then clarify for the record that I see that with
    24 reservations expressed by Mr. Ettinger that there does not appear
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    1 to be an objection to a third hearing as long as it is a focused
    2 procedure and that we do proceed expeditiously. Is that --
    3 MR. ETTINGER: Yes. I guess I would like to see a
    4 requirement that the third hearing is based on filings which the
    5 parties have made in advance of mid January that are specific and
    6 contain proposals for changes.
    7 HEARING OFFICER TIPSORD: All right. Is there anyone else
    8 who wants to weigh in on this issue so that we can take this
    9 information to the Board?
    10 MR. ETTINGER: I just have one more question by way of
    11 information for the Board. Ms. Tonsor, you know, described
    12 problems she has in February, and it seems like we do have a
    13 little scheduling issue here, because it does seem like February
    14 would be the logical time to have this third hearing.
    15 I guess I would ask Ms. Tonsor when is the earliest she
    16 could have the hearing after January would be so that we can wrap
    17 this up as soon as possible.
    18 MS. TONSOR: The first week of February is open with me.
    19 HEARING OFFICER TIPSORD: All right. Let's do this. If

    20 the Board decides to hold the third hearing, if you would like to
    21 be involved in a conference call with me to set up a scheduling
    22 time, please see me at a break and I will get all of your phone
    23 numbers, and if the Board does grant the motion and we do hold a
    24 third hearing, I will hold a conference call with all interested
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    1 persons and we will nail down the time frames, so that we can get
    2 it so that everyone has got enough time but that we keep this
    3 moving. And I think that is the interest of all of the parties.
    4 So if you will get in touch with me at break.
    5 Are there any other questions or comments before we begin?
    6 All right. Then could we have the Agency witness sworn in and we
    7 will proceed with questions of the Agency.
    8 MS. TONSOR: Okay. Toby has been sworn in so --
    9 HEARING OFFICER TIPSORD: I would prefer that we swear all
    10 of the witnesses again today.
    11 MS. TONSOR: Okay. I have two Agency persons with me. One
    12 is Toby Frevert and the other is Steve Nightingale. Steve is a
    13 manager in the permits unit, and is available to answer
    14 questions, should the need arise, on the general permit process
    15 as well.
    16 (Whereupon Toby Frevert and Stephen
    17 Nightingale were sworn by the Notary Public.)
    18 HEARING OFFICER TIPSORD: How best do you want to
    19 proceed? Do you want to have the questions read and then you

    20 answer them, or would you just rather generally like to go ahead
    21 and --
    22 MR. FREVERT: We have prepared written responses to those
    23 questions, and I think they are available to everyone in the
    24 room. I am assuming, based on those written responses, there may
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    1 be some follow-up questions. I would be happy to deal with that.
    2 I would prefer not to read the entire document.
    3 HEARING OFFICER TIPSORD: Okay. Do you want to enter that,
    4 then, as an exhibit at this time?
    5 MS. TONSOR: Yes.
    6 HEARING OFFICER TIPSORD: Okay.
    7 MS. HODGE: Ms. Tipsord?
    8 HEARING OFFICER TIPSORD: Yes.
    9 MS. HODGE: Excuse me, but I have not seen these written
    10 responses.
    11 MS. TONSOR: Toby's -- the written responses are over
    12 there. The written responses are as an aid to the Board. Toby
    13 is available to talk and answer the questions verbally, as well.
    14 There is copies of them.
    15 MR. ETTINGER: I saw written responses to the Board's
    16 questions. Are there also written responses to the other
    17 questions?
    18 MS. TONSOR: No.

    19 MR. FREVERT: These are the only questions that we
    20 received.
    21 HEARING OFFICER TIPSORD: Yes. I would note that the
    22 Agency did not receive the questions from the Illinois Steel
    23 Group, and that is one reason why we are postponing those until
    24 the end of the hearing.
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    1 MR. ETTINGER: Okay.
    2 HEARING OFFICER TIPSORD: All right. If there is no
    3 objection, we will enter these as an exhibit and then we will
    4 discuss how best to proceed with them. They will be admitted as
    5 Exhibit Number 7.
    6 (Whereupon said document was duly marked for
    7 purposes of identification as Hearing Exhibit 7
    8 and admitted into evidence as of this date.)
    9 MS. TONSOR: As a note of clarification, the written
    10 questions from the Board skipped a couple of numbers in the
    11 questions. We followed the Board's numbering. So when you see
    12 we have skipped a number, of course, we are just correlating them
    13 with the written questions that the Board had filed.
    14 HEARING OFFICER TIPSORD: Okay. Sorry about that.
    15 MS. TONSOR: That's okay. I just didn't want confusion to
    16 develop that there was an omitted answer.
    17 HEARING OFFICER TIPSORD: Thank you. I appreciate that. I
    18 am the one responsible for the skipped numbers, so I apologize.

    19 You know, I know time is a factor, but I just have some
    20 concerns that no one has had a chance to pre-review these. So it
    21 is going to be a little difficult to try to come up with
    22 follow-up questions without either taking a break for an hour and
    23 letting everyone look at them, which is not something that I
    24 would prefer, or proceeding with Toby reading in the questions.
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    1 So I guess I would also put that out to all of you.
    2 I think it is probably best to proceed with him answering
    3 the questions -- or reading the answers in. I think it is just
    4 -- I think that's the only way we are going to be able to
    5 legitimately see if there are any follow-ups by anyone. Since
    6 the questions were seen by the other people for the first time as
    7 well I think that is probably best.
    8 MS. TONSOR: That is entirely acceptable, and what we had
    9 intended to do with these.
    10 HEARING OFFICER TIPSORD: All right.
    11 MR. FREVERT: Okay. I will proceed. I want to make one
    12 point. This response, Exhibit Number 7, actually paraphrases the
    13 questions. It does not present the questions word for word.
    14 HEARING OFFICER TIPSORD: That's fine.
    15 MR. FREVERT: I presume people have copies of the questions
    16 so that they can go back to see the exact language of the
    17 questions.

    18 My name is Toby Frevert and I have previously submitted
    19 testimony on behalf of the Agency in this rulemaking proposal.
    20 On November 28 the Board submitted written questions to the
    21 Agency for response at today's hearing. This document contains
    22 written answers to those questions. I am available to further
    23 clarify and respond to these questions.
    24 The first question pertained to some reference in the
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    1 Federal Water Quality Standards Handbook regarding communication,
    2 cooperation between the state and the federal agencies in the
    3 process of developing these requirements.
    4 My answer is the Agency has been in communication with the
    5 U.S. EPA's Region 5 Office throughout the entire developmental
    6 process. We secured a preliminary review of the proposal prior
    7 to filing with the Board and intend to maintain communication
    8 through the remainder of this initiative.
    9 I might supplement that by reminding people that we
    10 actually had an employee representative of U.S. EPA available at
    11 the prior hearing in case any questions would come up that were
    12 appropriate for him. If in the future there is some benefit in
    13 having a federal representative participate in this hearing, I
    14 would attempt to coordinate and make that person available as
    15 well, particularly if there is a third hearing and something
    16 would come up today that would warrant such a step.
    17 The second question dealt with examples of degradation as

    18 language presented in our proposal.
    19 HEARING OFFICER TIPSORD: Excuse me. Go ahead.
    20 MS. HODGE: I am not sure how you wanted to handle follow
    21 up. Do you want them to go through all of the answers or do the
    22 follow-up --
    23 HEARING OFFICER TIPSORD: I think follow-up after each
    24 question if there is follow-up, just so that we can keep the
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    1 record together. So was there any follow-up?
    2 MS. HODGE: I have a follow-up question.
    3 HEARING OFFICER TIPSORD: Okay.
    4 MS. HODGE: Mr. Frevert, when I look at the Board's
    5 question, I guess the second part of this they had asked if you
    6 could describe the comments that you may have received from the
    7 U.S. EPA. Could you do that, please?
    8 MR. FREVERT: There were some suggested changes in the
    9 wording regarding those lists of activities that we are proposing
    10 not to subject to an individual review for determination of
    11 compliance of the standard. Other than that, the indication was
    12 that there appeared to be no failed flaws or anything in the
    13 proposal that they could identify early on as an obstacle of
    14 federal approval.
    15 My intent is as modifications come forward to the extent
    16 that the language of this proposal gets modified, I would also

    17 want to coordinate so that they could see that and if there is
    18 something that gets added to this that would clearly be
    19 unapprovable, they could notify us to that affect. Hopefully we
    20 are all aware that the U.S. EPA is not going to dictate a
    21 solution or interfere too much with the state rulemaking process.
    22 But they certainly are willing to work with us and identify
    23 things that they believe clearly are unapprovable.
    24 MS. HODGE: Thank you. Have any of U.S. EPA's comments
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    1 been in writing or are these primarily oral comments?
    2 MR. FREVERT: I think they are primarily oral and maybe
    3 even exclusively oral. The other thing I might point out is that
    4 the U.S. EPA had representation I think at virtually every one of
    5 our work group meetings and we even brought in a headquarters
    6 antidegradation expert to address the work group in one of these
    7 sessions. And they fairly liberally participate in the
    8 discussions that took place in those work group sessions.
    9 So I am comfortable that we have a good working
    10 relationship. To the extent that any confusion about the federal
    11 requirements came up, they were there to answer them throughout
    12 the process. I have a full expectation that they are willing to
    13 continue that type of cooperation.
    14 MS. HODGE: Thank you.
    15 HEARING OFFICER TIPSORD: Anything further? Okay. Let's
    16 move on to question number two.

    17 MR. FREVERT: The second question dealt with the examples
    18 of degradation as contained in the proposed language.
    19 My response is, the intent of the proposed language was not
    20 to define measures of degradation, but to specify that
    21 degradation cannot progress to the point of eliminating an
    22 existing use. The specific examples offered were incorporated
    23 into the Agency proposal because there may be multiple uses and
    24 interpretations of the term aquatic life use. In 35 Illinois
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    1 Administrative Code 302.202 aquatic life is used as a single
    2 category in a listing of designated general uses. That is not
    3 the intent within proposed Section 302.105(a). Rather, the
    4 intent of this subparagraph is to clarify that existing
    5 individual aquatic life uses must be protected. It was the
    6 Agency's intent to encompass the concepts of ecosystem diversity,
    7 productivity, stability, and protection for various life stages
    8 within the language of Section 302.105(a). However, we are
    9 receptive to suggestions for better language if additional
    10 clarification is necessary. Perhaps we erred in the use of the
    11 word "degradation" in the body of the paragraph Section
    12 302.105(a) whereas the words "loss" or "elimination" may have
    13 been more appropriate. Subsections 302.105(a)(1) and (a)(2) are
    14 examples of loss of a use, rather than degradation of a use.
    15 If the Board believes that additional language is necessary

    16 to define or otherwise clarify degradation or measures of
    17 degradation, I believe the proper place to do that would be in
    18 Section 302.105(c)(1). The Agency proposal leaves the measure of
    19 degradation consistent with the existing Board regulation "waters
    20 of the State whose existing quality exceeds established standards
    21 be maintained in their present high quality unless...". The
    22 Agency believes this language accomplishes the intent of the U.S.
    23 EPA's guidance on this aspect of the antidegradation policy.
    24 HEARING OFFICER TIPSORD: Okay. Thank you. Just for the
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    1 record, there are also now copies of the Board's questions if you
    2 don't have a copy. We just put some on the table.
    3 Are there any follow-ups? Okay. Seeing none, we will
    4 proceed to question number three.
    5 MR. FREVERT: Question number three, again, I believe that
    6 is language -- an issue of clarification of some language. This
    7 deals with Section 302.105, Paragraph (a)(2).
    8 This subsection is intended as an example not an exhaustive
    9 list. Nevertheless, I interpret the terms "resident and
    10 indigenous" as adequate to include "threatened, endangered and
    11 migratory".
    12 Perhaps that is just an issue of semantics but, again, it
    13 was not intended as a definitive or exhaustive list so much as an
    14 example.
    15 HEARING OFFICER TIPSORD: Okay. Any follow-ups? Okay.

    16 Question number four.
    17 MR. FREVERT: This has to do with loss of a species that
    18 may be the result of an action that would be subject to approval
    19 either through permitting, NPDES permitting or Section 401
    20 certification.
    21 There are any numbers of ways an aquatic species may be
    22 extirpated from a particular aquatic community, including
    23 lethality. There are some obvious examples where this will be
    24 intentional, such as nuisance species control, i.e., Zebra
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    1 mussel, blue green algae, active fisheries management in a state
    2 park lake, etcetera. Those are activities where you are
    3 intentionally doing away with a species. Other perhaps not so
    4 obvious examples would be something like dredging and channel
    5 maintenance where benthos and other food chain organisms, which,
    6 incidentally, are aquatic life, may be physically removed from
    7 the stream and deposited on land where desiccation and other
    8 phenomenon produce death. Of course, these are examples of the
    9 extreme and the outcome of a review may be relatively
    10 predictable. In other circumstances, such as damming a stream to
    11 create a reservoir, there will be a shift over time from a lotic
    12 to a lentic community.
    13 The essential result there is certain species of the
    14 aquatic community would decline over time and move out and they

    15 would be replaced by other species.
    16 U.S. EPA follows two fundamental tracts in developing
    17 criteria for water quality standards. In the case of human
    18 health issues the system is designed to protect the individual,
    19 safe levels are based on the most at risk sector of the
    20 population. On the other hand, aquatic life criteria are derived
    21 to protect the integrity and sustainability of the overall
    22 community. Data used in deriving criteria are selected to
    23 protect 95 percent (not 100 percent) of the population within a
    24 species and derivation formulas are designed to represent the
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    1 various biological trophic levels within a healthy and diverse
    2 aquatic community. It is not based on nor does it require that
    3 every possible species within every trophic level be protected.
    4 Superimposed on this criteria setting approach is the
    5 supplemental requirement to protect individual species that are
    6 of particular value to the overall health of the ecosystem or
    7 some other specific use such as important recreational or
    8 commercial value and federally classified endangered species.
    9 Perhaps a simple example would be helpful here. Algae are
    10 typically an important component of an overall healthy aquatic
    11 community. There are numerous species of algae that perform the
    12 same function within an aquatic community. It is possible and
    13 plausible that an individual species of algae could be extirpated
    14 from a healthy and diverse aquatic community without undermining

    15 the overall health of the community and without substantially
    16 affecting diversity. This type of shift in aquatic community
    17 structure is not precluded by federal water quality standards
    18 criteria. In fact, we know that certain types of activities will
    19 result in some species being replaced by other species. If you
    20 turn a stream into a reservoir some species will leave, and
    21 others will move in.
    22 HEARING OFFICER TIPSORD: Any follow-up?
    23 MS. LIU: Mr. Frevert, you stated that data used in
    24 deriving the criteria are selected to protect 95 percent of the
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    1 population. Where does that standard come from?
    2 MR. FREVERT: That is part of the statistic procedures used
    3 in the federal criteria derivation process. The U.S. EPA uses an
    4 approach like that in publishing their individual numeric
    5 criteria for certain chemicals. And it is also a similar concept
    6 used in a narrative standard and the procedures that come along
    7 with the narrative standard, such as our Subpart F, the toxics
    8 component of the Board's water quality standards.
    9 MS. LIU: Thank you.
    10 HEARING OFFICER TIPSORD: Okay. Proceed with question
    11 number five.
    12 MR. ETTINGER: I have something.
    13 HEARING OFFICER TIPSORD: Oh, I am sorry.

    14 MR. ETTINGER: I have a question here that I guess I would
    15 like you to address a little bit. I think it is clear that in
    16 certain cases you would actually want to get a particular species
    17 out of a particular area, for example, Zebra mussels. There are
    18 other cases, and I think this is part of the concern of the
    19 Board, that some species which may not have a commercial value
    20 are native species and we would want to protect that species
    21 there, most obviously, an endangered natural species, not a Zebra
    22 mussel but a native Illinois mussel. How do you propose to
    23 distinguish those cases in the rulemaking that you have drafted
    24 here?
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    1 MR. FREVERT: I think that the proper response to that is
    2 -- and I believe I stated that -- superimposed on this federal
    3 model, and I believe we have this language, for instance, in our
    4 Subpart F procedures, is the understanding and the authorization
    5 to protect an individual species even though it may not be a
    6 threat to the overall health of the aquatic community, if that
    7 individual species has a particular value. Certainly endangered
    8 species rise to that stature.
    9 MR. ETTINGER: Okay.
    10 MR. FREVERT: So I believe there is the authority and the
    11 obligation to address and assure that when a species rises to
    12 that status, it is protected and an activity cannot be authorized
    13 that would result in that species elimination.

    14 MS. LIU: Mr. Frevert, would the 95 percent factor apply to
    15 threatened or endangered species as well?
    16 MR. FREVERT: I guess my first response is that most of the
    17 endangered species I doubt that you have enough toxicity data or
    18 statistic data to even answer that. I think in reality you would
    19 set -- you would probably take a much more conservative approach
    20 and virtually protect -- do what you felt would protect every
    21 individual species -- or every individual within that species.
    22 But I can't say that I have ever sat around discussing that
    23 particular aspect of it with the federal standards experts
    24 either. I believe that's the way it would be dealt with. That
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    1 would be my intent on dealing with it on a state level.
    2 MS. LIU: Okay.
    3 HEARING OFFICER TIPSORD: Okay.
    4 MR. FREVERT: Okay. So where are we, on number five. This
    5 regards circumstances where there is a need for demonstration.
    6 Activities within an Outstanding Resource Water are
    7 essentially precluded except for very limited areas, and that
    8 limited number of areas is delineated in Section 302.105(b)(1).
    9 Even those activities are allowable only upon determination of
    10 compliance with the broader criteria as provided in Section
    11 302.105(b)(3). Section 302.105(b)(2) is intended to build upon
    12 and be additive to the demonstration/determination for High

    13 Quality Waters. Therefore, Section 302.105(b)(3) accomplishes
    14 what you had suggested in the addition to Section 302.105(b)(2).
    15 HEARING OFFICER TIPSORD: Okay. Proceed with number seven.
    16 MR. FREVERT: This was suggested language modification to
    17 Section 302.105(b)(2)(c). I believe this is a good point. There
    18 will be an overall improvement in the language of this Section by
    19 achieving consistency between Sections 302.105(b)(2)(B) and
    20 (b)(2)(C). However, I don't think we want to restrict the issue
    21 to water quality. Rather, it should also encompass activities
    22 that would result in an overall improvement in the resource.
    23 For instance, stabilization or restoration of habitat may
    24 have no direct improvement to water quality but may be very
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    1 beneficial to the attributes of the water quality. Therefore,
    2 the Agency suggested that adding a phrase "or the overall
    3 environmental attributes of" in Section 302.105(b)(2)(B) after
    4 the word "quality" and deletion of the second usage of the word
    5 "in" would probably result in better language and accomplish our
    6 overall intent of that Section.
    7 HEARING OFFICER TIPSORD: I would note for the record this
    8 is an example of where the Board's question skipped a number. We
    9 went from five to seven.
    10 MR. FREVERT: Okay. Number eight. This is regarding the
    11 use of the word "exceeded".
    12 As used in this paragraph the word "exceeded" is intended

    13 to convey the notion of noncompliance or exceedance or otherwise
    14 a lesser quality. However, as used in Section 302.105(c) the
    15 word is intended to imply superior quality. So the nature of the
    16 word "exceed" can exceed in either direction. "Exceed" and
    17 "exceeded" should both be changed to avoid confusion and convey
    18 the proper intent.
    19 I thought I dealt with this in a response and maybe I
    20 didn't. We will go back and suggest a different word than
    21 exceeded, I believe. I guess one of the complications there was
    22 exceed is a word we inherited in the existing language in the
    23 existing standard. We wanted to preserve the notion that we were
    24 not deviating from the existing standard. But we may improve the
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    1 overall clarity of that existing standard by deviating from the
    2 word exceed to a better word.
    3 I think question number nine refers to protection of water
    4 quality and water quality standards at some point downstream of
    5 the actual point of discharge.
    6 My clarification is the standard applies equally to all
    7 waters of the state. The principles apply whether your focus is
    8 the point of the discharge, one foot downstream of that point,
    9 one mile or more.
    10 So in reality the standard applies to the water body
    11 sources that have any potential affect on that water body. It

    12 does not matter whether they are immediately there or some
    13 distance away.
    14 Question number ten refers to, I believe, the section
    15 dealing with thermal discharges, cross reference to procedural
    16 rules for alternate thermal standards. Yes, we think this may be
    17 a beneficial clarification. I believe we will consider some
    18 language to accomplish that.
    19 A similar question in number seven, in reference to thermal
    20 standards and some cross-referencing.
    21 The difference between Section 302.105(d)(4) and (d)(5) is
    22 that Section 302.105(d)(4) applies to thermal discharges that are
    23 subject to and have complied with the special thermal studies
    24 called for under Section 316(a) of the Clean Water Act.
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    1 Subsection (d)(5) is intended to apply to sources that are not
    2 subject to and would not be required to conduct such a thermal
    3 impact study. The Agency's intent with respect to subsection
    4 (d)(5) is that we would not require an antidegradation
    5 determination for a proposed discharge that adds no parameters to
    6 the receiving water except heat if that source complies with the
    7 generally applicable thermal standards and is not otherwise
    8 required or motivated to conduct a thermal study. Therefore, the
    9 Agency does not believe such a cross reference is appropriate in
    10 this section.
    11 I assume there is no follow-up? Okay. I think we are on

    12 to number 12.
    13 The applicability to existing point sources. The
    14 antidegradation standard is intended to assure conscious
    15 assessment of new loadings that could produce some extent of
    16 degradation. Existing point sources undergoing permit renewal
    17 with a proposed increase in permitted loading would be subject to
    18 an antidegradation determination; those renewals remaining at
    19 existing authorized loading levels would not. In the specific
    20 case of existing facilities covered by general permit, the Agency
    21 contends that compliance has and will continue to be accomplished
    22 through categorical or general antidegradation determination as
    23 part of the general permit development and issuance. General
    24 permits include conditions for site management, operational and
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    1 discharge handling practices that we believe accomplishes the
    2 intent of the antidegradation standard and the review and
    3 analysis there for.
    4 MS. LIU: Mr. Frevert, would this antidegradation
    5 rulemaking be in any way retroactive for existing sources that
    6 were not up for renewal on their permits?
    7 MR. FREVERT: That's not my intent. I believe if we issue
    8 that permit and authorize that loading, then we determine
    9 compliance with the antidegradation standard at the time we
    10 authorize that loading through whatever process was in place at

    11 that time. I think I had testified earlier that our reviews have
    12 actually evolved and improved over the last 15 years or so.
    13 Nevertheless, we have addressed the antidegradation in one
    14 fashion or another through that time. So our position is that
    15 once we have authorized the load, we don't have to -- I am sorry
    16 -- not once we have authorized the load. Once we have determined
    17 that load is consistent with the intent of the antidegradation
    18 standard through the issuance of that permit we are not going to
    19 duplicate that effort when the permit is up for renewal unless
    20 there are new loading issues to be dealt with.
    21 MS. LIU: If someone were to document some sort of
    22 degradation in a water body that occurred after the approved
    23 pollutant loading was applied, would they have a recourse for
    24 going back to the Agency to have them re-review that permit
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    1 issuance?
    2 MR. FREVERT: I don't know. From a practical matter, I
    3 don't know why you would bother with that. If you have
    4 documented significant deterioration or viable deterioration in
    5 the community or the character of the stream and you have
    6 documented that it is attributable to a particular source, it
    7 seems to me that takes on more of an issue of compliance
    8 follow-up or enforcement type of review and consideration rather
    9 than trying to retrofit a permit review that perhaps may not be
    10 viewed as the ideal permit review at some later date.

    11 Antidegradation is -- it is a preventative and proactive
    12 approach. Whereas, I think you are talking about a circumstance
    13 where you are really dealing with a response and a reaction to
    14 something that -- whether it should have happened or not,
    15 something that you determined has happened after the fact.
    16 BOARD MEMBER FLEMAL: But you can be enforced against for
    17 failure to comply with antidegradation; is that not correct?
    18 Could be?
    19 MR. FREVERT: If someone -- I think the complicated issue
    20 there is if you are talking about this being the result of a load
    21 that the Agency has authorized and permitted through an NPDES
    22 permit, that might be a little more complicated in debating or
    23 litigating whether or not that antidegradation view and
    24 determination either didn't take place or was flawed and resulted
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    1 in the wrong decision.
    2 BOARD MEMBER FLEMAL: Possession of a permit is no defense
    3 against violation of a standard, is it?
    4 MR. FREVERT: Well, to begin with, I have not conceded that
    5 this scenario that you are talking about constitutes a violation.
    6 Clearly, our antidegradation standard says there can't be
    7 degradation. It says degradation must be justified based upon a
    8 determination prior -- a determination prior to the authorization
    9 for that action. If we have authorized that action, I think it

    10 almost inherently applies that if we did our job right and
    11 addressed the water quality standards in that authorization, we
    12 determined that it was compliant and consistent with the intent
    13 of the standard. We may have been wrong, but we still made that
    14 determination.
    15 BOARD MEMBER FLEMAL: What you have done, though, is to
    16 authorize a discharge. You have not authorized a violation of a
    17 provision in the regulations and antidegradation provisions, so
    18 it is entirely possible that there could be an enforcement action
    19 brought for a violation of antidegradation in spite of the
    20 existence of the Agency's review and in spite of the existence of
    21 an Agency permit, and in spite of the existence of an Agency
    22 determination that a certain load was permissible; is that not
    23 correct?
    24 MR. FREVERT: Theoretically that be a pleasant exercise. I
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    1 am not -- it is not clear in my own mind how you would prove
    2 violation of that standard. It is clear to me how you would
    3 prove violation of copper stands. But how you would prove
    4 violation of a standard which sets up a review policy and a
    5 determination process without dictating the outcome of that
    6 determination, I believe that is a little different issue and
    7 maybe you ought to be asking your question to a lawyer rather
    8 than me (laughing).
    9 BOARD MEMBER FLEMAL: We are not here to debate litigation

    10 practice, I suppose. But it would certainly, I think, be my
    11 understanding that there is more to the issue of violation of --
    12 potential violation of an antidegradation standard than if the
    13 Agency has signed off on it that there is no problem. There may
    14 be problems.
    15 So I think it is important that when we are looking at what
    16 is before us that we bear in mind that this is a standard, that
    17 we are reviewing a standard, and whatever Agency practices are
    18 involved in your aspect of reviewing whether that standard is met
    19 in a permit process, there are still issues that relate to
    20 enforcement.
    21 MR. FREVERT: Generally I agree with you. I guess the
    22 point I am making is the responsibility of the discharger is to
    23 comply with the standard. The standard is complied with through
    24 some conscious determination and review process. If we have gone
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    1 through that review and we deem that the permit can be issued
    2 with those limitations in that permit, then that will meet our
    3 quality standards unless they deviate from those conditions. It
    4 is possible that you could argue or you could make the case that
    5 they violated the standard by deviating from the conditions that
    6 the permit placed upon them. I think that's a little more
    7 clearly.
    8 But if they comply with all of those conditions and there

    9 was some increment of additional loading, that additional
    10 loading, in and of itself, and even perhaps some slight
    11 measurable degradation that resulted from that additional
    12 loading, I don't -- in my own mind, that is not clearly a
    13 violation of that standard. Obviously, it is a standard and you
    14 can debate that point, but that is pretty theoretical.
    15 MR. ETTINGER: I have one question to follow-up on those.
    16 Most of your permits -- and there is a person from permitting
    17 here -- I believe all of the permits have boilerplate language in
    18 the back saying that you cannot cause a violation of state water
    19 quality standards. So is my understanding correct that in using
    20 this loose hypothetical, let's say, for example, you are granted
    21 a permit and it turned out, however, that then the discharge
    22 started to kill things below it, that would probably violate
    23 either the narrative or the no toxics and toxics amounts water
    24 quality standards, you could still proceed against that permittee
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    1 based on the boilerplate language?
    2 MR. FREVERT: I think that would be the logical thing to
    3 do. I mean, if that result occurred, there are much clearer and
    4 crisper standards or statutory citations that someone could
    5 follow in pursuing a correction of that rather than debate
    6 antidegradation, whether or not it was met. Certainly, if you
    7 documented significant -- well, elimination of use through a fish
    8 kill or something of that nature, you know, we are going to sue

    9 them over a fish kill in violation of 12(a), we are not going to
    10 sue them over whether or not that antidegradation determination
    11 that we made constituted compliance with that standard. We have
    12 remedies to that hypothetical that would not require such a
    13 jeopardous approach. We have much greater certainty, I think,
    14 siting other violations.
    15 MR. SMITH: My name is Jeffrey Smith. I am with Abbott
    16 Laboratories. Toby, I have a question for you, in terms of you
    17 discussed general permits dealing with stormwater, for example.
    18 If in the situation of an industrial facility that has an
    19 individual permit that covers a number of outfalls one of which
    20 would be say an outfall that consists of stormwater from an
    21 industrial area site, what type of activity would occur -- would
    22 need to occur that would require the permit holder to go and make
    23 an antidegradation demonstration and go through the process? For
    24 example, if the facility installs a tank, would that, in fact,
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    1 require the permit holder to go to the Agency with an antideg
    2 application?
    3 MR. FREVERT: I am going to need a little more
    4 clarification, Jeff. Are we talking about a stormwater outfall
    5 now that is covered by your NPDES permit?
    6 MR. SMITH: That's correct. Basically, the reason why I
    7 asked the question, the permit requirements that apply to that

    8 type of an outfall really mimic what is in the State's general
    9 stormwater permit. Which in your answer to that question that we
    10 have been discussing basically says if you follow the
    11 requirements of the conditions in the general permit, you are
    12 deemed to be in compliance with the antideg rules, as I read it.
    13 If you -- how would that apply, then, to an industrial facility
    14 that has an individual permit?
    15 MR. FREVERT: Well, I think we would look at the
    16 circumstances of that particular site to determine whether or not
    17 there was anything over and above what we believe the
    18 antidegradation would require for the normal majority of
    19 stormwater that is covered by a general permit and simply would
    20 not be efficient for an individual review. Nevertheless, if that
    21 outfall is not covered by a general permit, we would have to make
    22 an independent individual decision on that outfall, whether or
    23 not the intent of antidegradation was met. You could take a lot
    24 of confidence, unless there is something really unusual in that
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    1 site, that type of operational practices and alternative control
    2 and pollution prevention techniques that are generally required
    3 through the general permit would be the same result. You would
    4 be treated the same way, but we would make a conscious decision
    5 for that outfall. Whereas, once we decide that one of the 4,000
    6 outfalls that we think is eligible for the general permit is
    7 appropriate, any additional requirements upon that facility for

    8 antidegradation would be those housed in that general permit, the
    9 operational and management practices.
    10 MR. SMITH: So the Agency would advise permittees with that
    11 kind of situation to consult the permit group to see if, in fact,
    12 your expansion may, in fact, trigger an antidegradation issue for
    13 an expansion?
    14 MR. FREVERT: No, I don't think that is what I am saying.
    15 I think what I am saying is it would trigger an antidegradation
    16 examination and we can tell you what the outcome of that
    17 determination is and the types of things that we believe are the
    18 level of control and stormwater management that we would be
    19 looking for. And you can, unless there is something unusual or
    20 rare out there, purely stormwater within your facility and it is
    21 not interconnected with the processed waste, the outcome is
    22 probably going to be the same as the outcome for if you have that
    23 outfall covered under a general permit.
    24 HEARING OFFICER TIPSORD: Are there any questions? Any
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    1 others?
    2 MS. HODGE: I just want to clarify. What you are saying,
    3 Mr. Frevert, is that the installation of a new storage tank could
    4 trigger an antideg review?
    5 MR. FREVERT: If -- well, if that storage tank is merely
    6 another management practice of an existing permitted facility,

    7 and it does not constitute a load increase, no, there would be no
    8 review. I was interpreting Jeff's questions as if he installed a
    9 new facility to handle additional stormwater from the expansion
    10 of the site or something of that nature.
    11 If he is merely implementing stormwater handling and
    12 management practices from a stormwater source that is already
    13 permitted, that determination was made at the time that the
    14 permit was issued and we are not asking -- we are not saying that
    15 it would trigger another one.
    16 So perhaps I was a little confused in assuming that your
    17 question was based on additional service area or increased
    18 stormwater. If it wasn't, it would not trigger anything. That
    19 is merely implementing the conditions that apply to that outfall
    20 at the time it was permitted.
    21 MS. HODGE: How would a permittee determine whether the
    22 installation of the new tank or a new parking lot or something
    23 would or could result in an increased loading to the discharge
    24 through the stormwater outfall?
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    1 MR. FREVERT: I might ask Steve to help me here a little.
    2 But my understanding is that those stormwater permits,
    3 essentially they cover a parcel of property, and those permits
    4 require certain stormwater management handling practices to
    5 maintain the best performance and the best quality of that
    6 stormwater discharge into the waters of the State. What you do

    7 in that active management within that piece of property that is
    8 covered by a current, valid permit, you don't need a permit
    9 modification to carry out practices in that permit.
    10 If you are proposing to expand across the street or some
    11 other parcel of land that is not covered by that, then you need
    12 to get the new parcel of land covered by some form of permit,
    13 either a new permit or a modification of that existing permit.
    14 And if it triggers modification for expansion of coverage area
    15 and expansion of volume of stormwater and stormwater load, that
    16 is an additional load that would trigger antidegradation. If you
    17 are doing management within property that is already permitted,
    18 there is no need to address antidegradation beyond the point it
    19 was addressed at the time the permit was issued.
    20 MS. HODGE: Okay. Thank you.
    21 MR. SMITH: Thank you.
    22 HEARING OFFICER TIPSORD: I think we are ready, then, for
    23 question number 13.
    24 MR. FREVERT: Okay. This is an issue regarding quantity of
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    1 load or other factors beyond chemical pollutant loading, I
    2 believe.
    3 Flow modifications that affect water quality. Yes, the
    4 premise of the question that lowering of water quality can result
    5 from effects other than an increase in pollutant loading is

    6 correct. This issue should be adequately resolved by
    7 modification of Section 302.105(c)(2) as follows: "Any proposed
    8 increase in pollutant loading subject to an NPDES permit or an
    9 activity requiring a Clean Water Act action, Section 401
    10 certification...". This should adequately encompass all
    11 potentially degrading actions that are within the reach of state
    12 preauthorization authority through NPDES and Section 404 water
    13 quality certification programs.
    14 The issue here is there are activities that are regulated
    15 under Section 401 of the Clean Water Act, such as dredging and
    16 construction within waterways, and dam construction and
    17 hydrologic modification. And in many instances the environmental
    18 ramifications and concerns of those projects don't really focus
    19 in on chemical disturbance so much as habitat destruction and
    20 other changes. And that is, indeed, the -- that's the reason,
    21 the main reason the Section 404 program is in the Clean Water Act
    22 to address those types of changes. We routinely do those kinds
    23 of reviews and place certain restrictions or criteria on 401
    24 certifications to address potential environmental degradation
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    1 that results from hydrologic modification.
    2 HEARING OFFICER TIPSORD: Okay. Let's proceed with
    3 question number 14.
    4 MR. FREVERT: I think this deals with the definition or the
    5 understanding of what outstanding waters are.

    6 It is not the Agency's intent that the term "unique" or the
    7 word "unique" carry such rigid definition as suggested by the
    8 question. The dictionary also includes, "very rare or uncommon"
    9 and "very unusual" as valid definitions. The importance of this
    10 issue is to understand, regardless of how one describes the
    11 classification; this classification is substantially more
    12 restrictive then any other surface water classification in the
    13 Board's rules.
    14 And, therefore, I think it should be reserved to waters
    15 that are significantly or truly above and beyond the normal type
    16 of water resources that we have in Illinois. Albeit, our
    17 resources are valuable and I am not suggesting they are of low
    18 quality or inferior quality, but suggesting that this is a
    19 category that rises much higher than the normal quality.
    20 MR. ETTINGER: Reading the Board's question and then
    21 hearing your answer, the first thing that came to my mind is that
    22 I should have checked the dictionary, as the Board did. Would
    23 you have any problem with using the term outstanding instead of
    24 unique since we do call it outstanding, and outstanding seems to
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    1 cover the same thing that we mean here as very unusual.
    2 MR. FREVERT: If that would solve some problems or be more
    3 commonly understood what the intent is, that may be a good
    4 suggestion.

    5 HEARING OFFICER TIPSORD: Okay. Question number 15.
    6 MR. FREVERT: This deals with some earlier testimony I made
    7 regarding the primary mode of operation usually looking at water
    8 quality and water chemistry.
    9 The primary criteria for identifying high quality waters
    10 are based on the existing language of Section 302.105; namely,
    11 "waters whose existing quality is better than the established
    12 standards". The Agency is proposing retention of this approach.
    13 The majority of existing water quality standards are chemical in
    14 nature; therefore, a chemical assessment is the primary
    15 identifier. However, there are other, nonchemical components to
    16 our water quality standards, as well. For example, Section
    17 302.203 and 302.211 are water quality standards that are not
    18 focused on chemical parameters.
    19 In terms of identifiers for Outstanding Resource Waters,
    20 the Agency is recommending that this determination not be made
    21 through a particular measurement or criteria but through a Board
    22 rulemaking or a quasi-legislative policy setting forum.
    23 Therefore, we feel there is the latitude to put a water
    24 body in that classification for whatever attributes constitute
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    1 worthiness of an outstanding designation, whether that be
    2 chemistry or habitat or historical or whatever criteria you would
    3 want to choose.
    4 The proposal requesting whether or not the Agency intends

    5 to nominate candidates for --
    6 HEARING OFFICER TIPSORD: Just one moment. We do have a
    7 follow-up.
    8 MR. FREVERT: Okay.
    9 MS. LIU: I guess when I read the description of
    10 Outstanding Resource Waters I automatically thought that they
    11 would have high water quality as well, until I read Region 8's
    12 guidance that kind of pointed out that the high water quality is
    13 not a prerequisite to becoming an Outstanding Resource Water.
    14 I was wondering, for the sake of making this a useful
    15 rulemaking and making it clear in the wording, if you could
    16 include something along those lines so that people know that it
    17 does not have to necessarily be a high quality water to be an
    18 Outstanding Resource Water.
    19 MR. FREVERT: I take that not as a question, but as a
    20 request to go back and consider some alternate language to
    21 accomplish the task. Yes, we would be happy to do that. I
    22 can't, off the top of my head, tell you what magic word will do
    23 that, but we will certainly try to accommodate that.
    24 MS. LIU: Thank you.
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    1 MR. FREVERT: I believe we are on number 16, does the
    2 Agency intend to nominate waters for this outstanding category.
    3 It is a pretty specific answer. I hope I presented it in the

    4 last hearing. I wanted to reiterate it.
    5 The Agency does not intend to propose any specific
    6 nominations as Outstanding Resource Waters until the
    7 classification and the process for consideration of such
    8 proposals is established within Board regulations. You can take
    9 that as saying that we don't intend and we don't recommend that
    10 specific waters be considered for that in this proceeding.
    11 Should other parties petition the Board to classify any water as
    12 an Outstanding Resource Water, such proposals should be
    13 considered separately from this docket.
    14 I think there is some practicalities there because there
    15 are -- hopefully there will be a lot of focus on the specific
    16 benefits and attributes of the particular proposal, and I am
    17 afraid that that level of effort on an individual application
    18 will bog down the more general state-wide rulemaking.
    19 HEARING OFFICER TIPSORD: I think I would like to follow-up
    20 a little bit on that question. I do think you were clear that
    21 the Agency does not intend to do anything until the procedures
    22 are in place. But I think the question is after procedures are
    23 in place, is this going to become a part of the Agency's review
    24 such that we may see rulemakings or however the Board -- I think
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    1 currently it is proposed as an adjusted standard in the adjusted
    2 standard arena.
    3 Does the Agency intend to come forward with or review

    4 periodically streams in the State and say, you know, here is one
    5 that we think may be an Outstanding Resource Water?
    6 MR. FREVERT: That is certainly a possibility. We do
    7 ongoing reviews and there is a significant amount of water
    8 quality standard regulations on the books in Illinois. A number
    9 of them need to be reviewed and updated. We try to do as much as
    10 we can as fast as we can, and this certainly will be an issue
    11 that we can deal with and intend to deal with as the
    12 circumstances arise.
    13 I am going to stop short of saying that I would predict
    14 that you should expect a significant number of filings from us
    15 within the next five to ten years. But I can tell you as a
    16 matter of practice that we are looking at designated uses. As a
    17 matter of fact, we are reviewing the use designation now. So use
    18 classifications are part of our ongoing review process.
    19 HEARING OFFICER TIPSORD: Okay. Thank you. I think we are
    20 ready for question number 17.
    21 MR. FREVERT: I believe this is another reference to the
    22 Outstanding Resource Water classification. There was a reference
    23 to federal criteria or federal guidance on the issue.
    24 My understanding of the federal guidance at 40 CFR
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    1 131.12(a)(3) and other federal documentation on this issue,
    2 including the Region 8 guidance, specifies national and state

    3 parks along with wildlife refuges are categories that may
    4 logically be candidates to consider for outstanding resource
    5 status. This is certainly far short of the presumption that they
    6 should be Outstanding Resource Waters.
    7 For some further clarification, one must remember that the
    8 EPA's interpretation of such designation is "no new or increased
    9 discharges to, their term, outstanding national resource waters
    10 and no new or increased discharge to tributaries to outstanding
    11 national resource waters that would result in lower quality".
    12 Illinois is fortunate to have parks and wildlife refuges all up
    13 and down its major rivers. Classifying all such locals as ORWs
    14 would affect the majority of the state and their tributary
    15 watersheds in adjoining states.
    16 So the presumption that a state park along the Mississippi
    17 or the Illinois River is an ideal candidate for outstanding
    18 resource classification may have ramifications 500 miles away. I
    19 want to make sure that everybody understands that. Any
    20 follow-up?
    21 HEARING OFFICER TIPSORD: Question number 18.
    22 MR. FREVERT: Under what circumstances would wetlands be
    23 able to receive outstanding resource classification. Then there
    24 is some follow-up aspects to that question.
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    1 My answer is, the Agency is proposing no prerequisites for
    2 either flow amount or duration of standing water in the

    3 classification of a wetland as an outstanding resource.
    4 (A brief recess was taken when the phone rang in
    5 the hearing room and Hearing Officer Tipsord
    6 answered it.)
    7 MR. FREVERT: Let me start over.
    8 MR. ETTINGER: I was wondering if that was an objection
    9 from the U.S. EPA.
    10 (Laughter.)
    11 MR. FREVERT: The Agency is proposing no prerequisites for
    12 either flow or duration of standing water in the classification
    13 of a wetland as an outstanding resource. Likewise, we are not
    14 proposing any restrictions for lakes and reservoirs. We do,
    15 however, recommend that free flowing streams with 7Q10 or seven
    16 day tenure low flow of zero will generally not be deemed a top
    17 candidate for classification. We intentionally stopped short of
    18 an outright prohibition, opting for a statement of general
    19 discouragement, believing intermittent streams in and of
    20 themselves typically are not the caliber of resource warranting
    21 Outstanding Resource Water classification. I believe such
    22 classification may indeed be appropriate for intermittent streams
    23 as part of a larger system that includes a perennial stream, lake
    24 or reservoir where the overall system may constitute an
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    1 outstanding resource.

    2 In drafting our proposal, it was intentional to put the
    3 word generally in there as precluding 7Q10 and stop short of
    4 making it absolute. But we also thought there was enough
    5 significance there that we needed to make a statement of some
    6 level of discouragement. We don't want every little half mile
    7 stream segment here and there that is not tied in to perhaps a
    8 more logical and significant resource to have these designations.
    9 BOARD MEMBER FLEMAL: In giving reference to a resource of
    10 saying resource water, you use the term water body or water body
    11 segment. We commonly use in our regulations when we are talking
    12 about the waters to which our standards apply the term, water of
    13 the State. Is there some significance in your choice of not
    14 using water of the State here and instead using the terms water
    15 body and water body segment?
    16 MR. FREVERT: No. I don't think there is any intention.
    17 You can probably use those terms interchangeably.
    18 BOARD MEMBER FLEMAL: If we were to use water of the State
    19 in replacement of those two terms, would that meet the Agency's
    20 understanding of the intent with this rule?
    21 MR. FREVERT: With one possible confusion, in that this
    22 rule and this intent is focused in on surface waters, and waters
    23 of the State may also include groundwaters, and we are not
    24 proposing that this standard is to have any application to
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    1 groundwaters.

    2 BOARD MEMBER FLEMAL: I guess I would ask both the Agency
    3 and as well as interested persons in this rulemaking as to
    4 whether or not that scope, that intended scope is reflected here
    5 in the choice of wording and whether that water of the State
    6 terminology is or is not an appropriate change to put in.
    7 MR. FREVERT: I can assure you that in drafting them that
    8 there was no conscious intent to use those terms only.
    9 BOARD MEMBER FLEMAL: From my own understanding of this, I
    10 guess I am not terribly clear as to what the population of water
    11 bodies other than surface water, which may, in fact, even be yet
    12 another possible term to use, but what that population actually
    13 is. And if we can find language that would not only clarify it
    14 in my mind but clarify it for people who have to live under these
    15 regulations I think that would be a useful bit of our time.
    16 HEARING OFFICER TIPSORD: Okay. Any additional follow up?
    17 Okay. Here is another example of where the Board's
    18 questions skipped number 19 and went to number 20.
    19 MR. FREVERT: This deals with specification of criteria
    20 for the Outstanding Resource Water classification.
    21 As stated earlier, an Outstanding Resource Water
    22 classification is substantially more restrictive than any other
    23 classification currently in place and those restrictions are more
    24 policy oriented than technically derived decisions, such as
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    1 determining a safe concentration for a numeric chemical standard.
    2 Determination of whether a water resource will be so classified
    3 or not will ultimately rest with the judgment of the Board in
    4 weighing the benefits of the classification against the
    5 restrictions that come with the classification. The Agency has
    6 chosen to focus its attention on the process and the types of
    7 information necessary for the Board to make a fully informed
    8 judgment rather than to specify criteria that would dictate what
    9 that judgment must be.
    10 I guess another way of putting it is I don't want to tell
    11 you when you have to say no and when you have to say yes. I just
    12 want to make sure you understand the ramifications of your
    13 decision and you make the best decision that you can.
    14 Region 8 guidance for Outstanding National Resource Water
    15 nomination. There is another question regarding that document.
    16 And I think it is regarding the process for nomination and
    17 consideration of candidates.
    18 The standards setting process is drastically different
    19 among the various states and territories. I am not aware of any
    20 state that has a process identical to Illinois. Some states
    21 allocate the Outstanding Resource classification is delegated to
    22 a body comparable to the Board; in others it is reserved for an
    23 action of the state legislature. I think the Board should
    24 exercise caution in giving too much credence to Region 8
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    1 guidance. The states within Region 8 have large expanses of land
    2 within public ownership which should greatly simplify some of the
    3 issues and ramifications that need to be considered when
    4 entertaining such nominations. Just land use and property issues
    5 are so much different out there, and also the hydraulics and the
    6 nature of the water systems.
    7 HEARING OFFICER TIPSORD: Could you just clarify what
    8 states encompass Region 8? I think it is in the document.
    9 MR. FREVERT: Colorado, Wyoming, Utah.
    10 MS. TONSOR: Montana.
    11 MR. FREVERT: Maybe New Mexico and Montana. The Seattle
    12 region has Idaho and Oregon and Washington, and I don't remember
    13 -- I think Region 8 also has the Dakotas, and the western side of
    14 the Dakotas are pretty arid.
    15 HEARING OFFICER TIPSORD: Thank you.
    16 MS. TONSOR: I have a question to clarify on this, as well.
    17 Is there any similar guidance document in Region 5?
    18 MR. FREVERT: No. Region 5 does not have regional guidance
    19 on this issue.
    20 MS. TONSOR: Does the regional guidance from any region, in
    21 fact, control in that region.
    22 MR. FREVERT: It is a regional guidance document. It does
    23 not carry any weight in terms of findings from headquarters or
    24 any sort of official promulgation or adoption process. It is
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    1 probably a staff working paper. I think there is some good
    2 notions and ideas in there that they have probably tried to
    3 customize for the geography and the climate and the population
    4 and the nature and activities in their states. But it is not
    5 unusual -- well, that is why we have regions in the United
    6 States, is because solutions that may work on the east coast may
    7 not work on the west coast and so on.
    8 Okay. Are we down to number 22?
    9 HEARING OFFICER TIPSORD: We have another follow-up.
    10 MR. FREVERT: Oh, I am sorry.
    11 BOARD MEMBER GIRARD: Mr. Frevert, I have a follow-up to
    12 the issue of guidance documents, and it is sort of a general
    13 question because it brings me back to many of the things that
    14 have come out in your responses here. I want to thank you. It
    15 helps us see how the Agency interprets much of the proposal.
    16 But, for example, I see some things that are not specified
    17 or spelled out, and I just wonder if many of these things are
    18 your personal interpretation that would leave the Agency when you
    19 leave or if these things are put down in writing somewhere in an
    20 internal Agency --
    21 MR. FREVERT: You know something, I don't know.
    22 (Laughter.)
    23 BOARD MEMBER GIRARD: You know, I wish you a long and
    24 healthy life.
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    1 (Laughter.)
    2 BOARD MEMBER GIRARD: But someone may make you an offer
    3 that you can't refuse some day. Well, for instance, you know,
    4 back in one of the earlier questions you talked about an
    5 interpretation of the terms resident and indigenous species to
    6 include endangered, threatened and migratory. Now, some other
    7 people may not consider that to include those terms.
    8 For instance, you talked about how the U.S. EPA uses data
    9 in deriving protective standards that will protect 95 percent of
    10 a population as opposed to 100 percent. But if you were looking
    11 at an endangered species in a nondegradation context, you would
    12 consider protecting 100 percent of the population.
    13 Now, are those standards set down anywhere in the Agency,
    14 or is this the first time that they have appeared on paper?
    15 MR. FREVERT: I think the last question is pretty easy to
    16 answer and that is because there are, separate from the Clean
    17 Water Act there is the Endangered Species Act, and there is a
    18 requirement to address endangered species through a whole other
    19 set of laws and requirements and whole other process that we are
    20 obligated to adhere to. It is sort of regardless of what happens
    21 with the standard. In reality, we are going to deal with them
    22 whether there is an antidegradation standard or not. We are
    23 probably going to deal with them in the same way whether there is
    24 an antidegradation standard or not.
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    1 In terms of the definition of technical terms like
    2 migratory and things of that nature, I am not aware that there is
    3 a significant opportunity to misinterpret those. I think the
    4 standards indicate that you have to protect all uses, and all
    5 uses, existing uses, is more than -- as long as there is any form
    6 of aquatic life, we are protecting aquatic life. To a great
    7 extent that is why we offer that language to indicate the
    8 definition of aquatic life and designated use is a whole lot
    9 different. That is one use in the classification system. In the
    10 reality of protecting existing use there is almost an infinite
    11 number of uses. And those uses have to be protected under the
    12 Clean Water Act if they exist. And if that use is a seasonal
    13 use, it still needs to be protected on that seasonal basis.
    14 Maybe to a more general issue behind your question, there
    15 is obviously the need to identify and make available to the
    16 public the actual permitting process and how it is going to work
    17 and how we interpret things and when and how we ask for
    18 information, how we make that decision. And there is a lot more
    19 clarification and a lot more specific detail within the
    20 permitting procedures to put the public on notice on how we think
    21 we can accomplish the intent of the standard.
    22 BOARD MEMBER GIRARD: So you would expect these to be
    23 spelled out in more detail in your 354 rules?
    24 MR. FREVERT: I think they will be spelled out in more
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    1 detail. I also want to make the point that there is no single
    2 way to do an antidegradation determination. Probably every one
    3 will be a little different. I have seen some testimony and some
    4 other comments in terms of full-blown. To the best of my
    5 knowledge, there is no such thing as a full-blown review. We are
    6 trying to identify and provide as much clarity as we can as to
    7 the intent and the requirement of the standard itself.
    8 How we address that in a particular application depends on
    9 so many variables. The size and nature of the discharge. The
    10 size and nature of the receiving stream, the location, things of
    11 that nature. That there is -- I can't sit down and tell you what
    12 the, quote, full-blown review would be. There is no such thing.
    13 BOARD MEMBER GIRARD: Okay. Thank you.
    14 HEARING OFFICER TIPSORD: Anything further? All right.
    15 Then the last question is question number 22.
    16 MR. FREVERT: This is regarding the relative level of
    17 burden for a proponent that wants to nominate a resource as an
    18 Outstanding Resource Water. It will reiterate some of the
    19 earlier issues.
    20 The Agency believes it is critical that all parties
    21 anticipated to be affected by such a classification be given
    22 sufficient notice and adequate explanation of the proposed
    23 classification to assess its impact upon their present and future
    24 activities so they may participate in the regulatory process if
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    1 they so choose. To the extent that this can be accomplished
    2 through a more abbreviated manner than the full petition, the
    3 Agency would be receptive to other alternatives.
    4 If the petition weighs ten pounds with all of the
    5 documentation and there is 5,000 property owners that are deemed
    6 to be potentially affected or businesses or permittees, I can
    7 understand why we may not want to be required to mail ten pounds
    8 5,000 times. But there needs to be some one or two page fax
    9 sheet that would have enough detail that a discharge or a
    10 property owner would know there is some pending proposals that
    11 may preclude their future opportunities to use their property.
    12 So we are open to consideration of something there. And I
    13 think I had stated earlier in the prior hearing that we are
    14 trying to emphasize the significance of the classification so
    15 that you know what kind of information you need to make a good
    16 decision. How much information is required to trigger that
    17 process and open the docket and start holding hearings, I think
    18 is perhaps what we are debating. We want to make sure that there
    19 is enough information and enough reason to believe that this is
    20 truly a likely candidate for that process before a lot of people
    21 start investing a lot of staff time and attending a lot of
    22 hearings. We are not trying to intentionally make the process
    23 burdensome. But we are trying to make sure that we truly get
    24 legitimate petitions and not a lot of petitions that -- where
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    1 there was not enough homework done to warrant Board
    2 consideration.
    3 And also to make sure that -- I guess the other important
    4 thing here is that there are a lot of people that could
    5 potentially be affected by such classification and probably does
    6 not even know the Pollution Control Board and water quality
    7 standards exist, because they are not currently operating a
    8 business or an activity where they need a permit and they are
    9 under the regulations. Every parcel of land out there may have
    10 some future use that would require that, and until these people
    11 pursue those ends, they may not even know that the water quality
    12 standards classification has any ramification on their piece of
    13 property.
    14 HEARING OFFICER TIPSORD: Section 37(a) of the Act talks
    15 about the requirements in a variance, what the Agency must
    16 undertake, and just sort of very briefly paraphrasing, it
    17 indicates that the Agency shall notify of any petition to any
    18 person in an area that has said that they want to be notified and
    19 also requires the chairman of the county board to get notice and
    20 for the Agency to also publish notice of the variance, the
    21 potential variance in a paper in that area. I am wondering if
    22 those kinds of notice requirements would satisfy what you are
    23 trying to achieve here, absent having a ten pound petition mailed
    24 to 5,000 people.
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    1 MR. FREVERT: We will be happy to go back and give that
    2 some more thought and try to give you better guidance.
    3 HEARING OFFICER TIPSORD: There are also some specific
    4 provisions in the Act, I believe, on who has to be notified in
    5 both landfill siting cases and enforcement procedures, and I just
    6 toss those out as possibilities of general notifications that
    7 might be helpful.
    8 MR. FREVERT: Again, we would be happy to do that. And,
    9 again, I would encourage other parties to weigh in with their
    10 opinions of how it should actually be dealt with. It is an
    11 important issue and there needs to be a balance. I don't want a
    12 process that is so cumbersome that citizens can't use it, but I
    13 don't want a process that is so inadequate that truly affected
    14 people are not aware of their opportunity to weigh in and bring
    15 you information on the ramifications that it may have on them.
    16 HEARING OFFICER TIPSORD: Are there any other additional
    17 questions at this time for the Agency?
    18 BOARD MEMBER FLEMAL: I have a question that goes back to
    19 your prefiled testimony as presented at the last hearing. In
    20 your discussion of what constitutes usage, you made the statement
    21 that it should be noted that the proposal protects existing uses
    22 rather than designated uses in the water body. Could you
    23 elaborate for us just a little bit on what significance you
    24 attach to that distinction?

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    1 MR. FREVERT: Certainly. I think I did it earlier, but I
    2 will try again. Designated uses, if you look at the definition
    3 or the Part 3 with the designated uses language, it is a pretty
    4 broad umbrella type approach where aquatic life is designated
    5 use. Within that designated use, the caliber and the quality of
    6 that aquatic life varies from stream to stream.
    7 For instance, some streams are perfectly capable of
    8 sustaining an adult population, but they are not capable of
    9 functioning as spawning and rearing grounds, while you can
    10 maintain perhaps a migratory population, who do not fully
    11 reproduce in year-round population. Those are different types of
    12 uses, even within one species.
    13 A water body can be used as a feeding ground for mature
    14 fish, but it may not function as a spawning ground. There are a
    15 lot of smaller streams that are, indeed, the breeding and rearing
    16 and nesting grounds for the young immature organisms that
    17 probably are not particularly functional for supporting an adult
    18 population due to their seasonal flow.
    19 Those are the kinds of environmental and biological details
    20 and complexities that I was trying to focus on and make sure that
    21 everybody understood, that there is a significant difference
    22 between an aquatic life use classification and actual existing
    23 uses and numbers and types of uses that occur in any particular
    24 stream, lake, reservoir, wetland.

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    1 BOARD MEMBER FLEMAL: Fishable and swimmable are designated
    2 or are existing uses?
    3 MR. FREVERT: Yes.
    4 (Laughter.)
    5 MR. FREVERT: Fishable and swimmable is the goal of the
    6 Clean Water Act. We have streams and lakes that are swimmable,
    7 and we have some streams and lakes that are not swimmable. I
    8 believe our standards and our use classifications have wording in
    9 there adequately that talk about protecting swimmable conditions
    10 when the physical and bacterial and other attributes allow.
    11 BOARD MEMBER FLEMAL: Okay.
    12 MR. FREVERT: I would like to give you a straighter answer,
    13 but I am not sure I know what you are going at, Ron.
    14 BOARD MEMBER FLEMAL: I guess I was just struck by the fact
    15 that you made that distinction and I was wondering what was
    16 behind your --
    17 MR. FREVERT: As a matter of fact, I think it probably was
    18 more important for the work group in the communication of the
    19 public knowledge than perhaps the absolute nature of the meaning
    20 in the regulation. You can protect an aquatic use, but you can
    21 protect a lower level aquatic use that existed yesterday, and
    22 that's the type of distinction that I am trying to make.
    23 HEARING OFFICER TIPSORD: Okay. Anything further? Okay.
    24 Before we --

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    1 MS. TONSOR: I wanted to ask some follow-up questions of
    2 Toby from the questions from the last hearing, which we really
    3 got short on time so I didn't have time to clarify with him.
    4 HEARING OFFICER TIPSORD: Okay.
    5 MS. TONSOR: And is now an appropriate time or do you want
    6 to break or --
    7 HEARING OFFICER TIPSORD: Actually, why don't we go ahead
    8 and -- you had submitted to me four general permits and these
    9 were ones requested from the previous hearing. I am going to
    10 admit those as Exhibit Numbers 8, 9, 10 and 11. General permits
    11 -- general NPDES permit number ILR00 is Number 8. NPDES permit
    12 number ILR10 is Number 9.
    13 (Whereupon said documents were duly marked for
    14 purposes of identification as Hearing Exhibits 8
    15 and 9 and admitted into evidence as of this date.)
    16 HEARING OFFICER TIPSORD: Then NPDES permit number ILG84 is
    17 Exhibit Number 10.
    18 (Whereupon said document was duly marked for
    19 purposes of identification as Hearing Exhibit 10
    20 and admitted into evidence as of this date.)
    21 HEARING OFFICER TIPSORD: NPDES permit number ILG551 is
    22 Exhibit Number 11.
    23 (Whereupon said document was duly marked for

    24 purposes of identification as Hearing Exhibit 11
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    1 and admitted into evidence as of this date.)
    2 MS. TONSOR: Did we get ILG84?
    3 HEARING OFFICER TIPSORD: Yes, that is Number 10.
    4 MS. TONSOR: Okay. I am sorry.
    5 HEARING OFFICER TIPSORD: That's okay.
    6 MS. TONSOR: There should be as a last page of the packet a
    7 one sheet, which gives the number of general permits outstanding.
    8 HEARING OFFICER TIPSORD: Yes, that is attached to the back
    9 of NPDES permit number ILG551. That was admitted as Exhibit
    10 Number 11. Do you want me to detach that and give it its own
    11 exhibit number?
    12 MS. TONSOR: It needs to be detached and have its own
    13 exhibit number.
    14 HEARING OFFICER TIPSORD: All right. We will make that,
    15 then, Exhibit Number 12.
    16 (Whereupon said document was duly marked for
    17 purposes of identification as Hearing Exhibit 12
    18 and admitted into evidence as of this date.)
    19 HEARING OFFICER TIPSORD: Do you have additional copies of
    20 these?
    21 MS. TONSOR: I brought approximately 30 copies of them.
    22 HEARING OFFICER TIPSORD: Okay. Thank you. Why don't we
    23 go off the record for a couple of seconds.

    24 (Discussion off the record.)
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    1 HEARING OFFICER TIPSORD: Okay. We will take a 15 minute
    2 break and then try to go until 1:00 before we take a break.
    3 (Whereupon a short recess was taken.)
    4 HEARING OFFICER TIPSORD: I think what we are going to do
    5 is leave it up to the testifier as to whether or not they want to
    6 read their testimony into the record, or if they want to take it
    7 as if read and do a summary. And so with that in mind, we will
    8 start with Mr. Moore. Could we have him sworn in and then we
    9 will discuss how you want to proceed with your testimony.
    10 Excuse me. I just received a message that we need to wait
    11 another couple of minutes. Okay. So we will go off the record.
    12 (Discussion off the record.)
    13 HEARING OFFICER TIPSORD: Okay. We are back on the record.
    14 As we discussed before, I am going to leave it up to the
    15 testifiers as to whether or not they want to read their testimony
    16 or give us a brief summary and then admit it as an exhibit.
    17 All right. Could we have Mr. Moore sworn, please.
    18 (Whereupon the witness was sworn by the Notary
    19 Public.)
    20 HEARING OFFICER TIPSORD: All right. Go ahead, Mr. Moore.
    21 MR. MOORE: My name is Robert Moore. I am the Executive
    22 Director of the Prairie Rivers Network. It is a state-wide river

    23 conservation group with offices in Champaign, Illinois. In the
    24 interest of moving the proceeding along today and getting us to
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    1 lunch sooner rather than later I guess I will opt for the
    2 nonreading option and try to provide the Board and the audience
    3 members with a summary of the testimony we prefiled previous to
    4 the November 17th hearing and the supplemental testimony that we
    5 prefiled in preparation for this hearing today.
    6 I would like to thank the Board for the opportunity to come
    7 before it and provide our input to this process. We think the
    8 promulgation of the antidegradation rules and the forthcoming
    9 implementation procedures are an essential part of the Illinois
    10 Clean Water Program and one that we hope to see rapidly
    11 implemented.
    12 To summarize the comments which we have filed, we are
    13 generally in favor of the concept of a strong antidegradation
    14 policy. There were a few issues which we thought needed to be
    15 clarified, some of which have already been addressed by the Board
    16 and discussed in questions and with testimony by the Agency and
    17 questions by other audience members and the Board itself.
    18 Some of our concerns are simple and can be addressed rather
    19 quickly just concerning minor language changes and the
    20 clarification of language. And others deal with more substantive
    21 issues, particularly some of our concerns focus on making sure
    22 that the antidegradation rules, when adopted, indeed apply to all

    23 new or increased discharges from point sources in the State of
    24 Illinois. And we also have some concerns about the process for
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    1 recognizing Outstanding Resource Waters.
    2 In addition, we would like to touch on the issue
    3 surrounding the de minimis exception, which has been brought up
    4 by several parties in the prefiled testimony and was also the
    5 subject of great discussion and debate at the work group
    6 meetings, which the IEPA convened in the two years previous to
    7 these hearings, which Prairie Rivers Network participated in.
    8 With that said, I would be happy to entertain any questions
    9 related to the testimony that we prefiled and the supplemental
    10 testimony that we have prefiled.
    11 HEARING OFFICER TIPSORD: Okay. Before we do that, let's
    12 take care of some housekeeping. Do you have a clean copy of the
    13 testimony and the supplemental testimony that we can mark as an
    14 exhibit?
    15 MR. MOORE: Yes.
    16 HEARING OFFICER TIPSORD: Okay. We will mark the prefiled
    17 testimony of Robert J. Moore as Exhibit Number 13, and then the
    18 supplemental prefiled testimony as Exhibit Number 14.
    19 (Whereupon said documents were duly marked for
    20 purposes of identification as Hearing Exhibits 13
    21 and 14 and admitted into evidence as of this

    22 date.)
    23 HEARING OFFICER TIPSORD: With that, are there any
    24 questions for Mr. Moore?
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    1 Yes, Mr. Harrington?
    2 MR. HARRINGTON: Some of these relate directly to your
    3 testimony and some, I think, more to the thrust of your
    4 testimony.
    5 I believe that at the first hearing there was testimony and
    6 today about thermal discharges. Mr. Frevert testified that the
    7 Agency did not think a review -- a full-blown nondegradation
    8 review would be necessary for increasing the thermal loading,
    9 which did not include additional pollutants other than water
    10 treatment chemicals already approved in the NPDES permit.
    11 In one of the prefiled questions I asked the Agency, which
    12 we will get to later, is would he object to including this as the
    13 list of things presumptively not considering nondegradation. Do
    14 you have any opinion on that?
    15 MR. MOORE: The subject of thermal discharges was brought
    16 up at the work group meetings and, again, as Mr. Harrington
    17 brought up, was brought up at the first hearing. We agreed at
    18 the work group and we continue to agree with the Agency's
    19 determination that it does not -- it is not a wise allocation of
    20 the Agency's resources to do an antidegradation analysis of a
    21 thermal discharge if, indeed, a demonstration has already been

    22 made under Section 316 of the Clean Water Act showing that no
    23 deterioration of the State's waters would occur from the thermal
    24 discharges. With the subject of additives, if additives are part
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    1 of the thermal discharge, those additives need to be examined to
    2 determine their potential to the waters of the State.
    3 MR. HARRINGTON: Just to follow-up on that, in my question
    4 and in my questions to Mr. Frevert at the first hearing I dealt
    5 with additives that had already been approved as part of an NPDES
    6 permit where the volume might increase with increased thermal
    7 discharge. Would that be a problem as far as you are concerned
    8 if that was not covered by -- if that was considered one of the
    9 presumptively nondegradating discharges?
    10 MR. MOORE: Inclusion of a pollutant in an NPDES permit --
    11 by increasing the loading of a pollutant already included in a
    12 NPDES permit, I don't think that their inclusion in the prior
    13 permit is a presumptive finding that increased levels would not
    14 cause degradation.
    15 MR. HARRINGTON: Did you -- at the first hearing, again,
    16 when I asked some questions, as did other people, about
    17 pretreatment, did you agree with the Agency's testimony at that
    18 time that a new increased discharge of a POTW that did not
    19 require the POTW to modify its NPDES permit is not covered by
    20 these rules or should not be covered?

    21 MR. MOORE: Are you asking my opinion?
    22 MR. HARRINGTON: Yes.
    23 MR. MOORE: You are asking on my opinion on if the Agency
    24 should do an antidegradation review?
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    1 MR. HARRINGTON: Yes, on a new or increased discharge to a
    2 POTW which does not require a modification of the POTW's permit.
    3 MR. MOORE: That is a decision that is up to the Agency.
    4 My understanding of the pretreatment program is increases in
    5 discharges from pretreaters, as long as they have -- as long as
    6 that increase in discharge results in no change to a POTW's NPDES
    7 permit, any increase in the discharge of the pretreater is
    8 between the POTW and the pretreater.
    9 MR. HARRINGTON: Okay. Thank you. Your testimony opposes
    10 any de minimis exemption of the rules; is that correct?
    11 MR. MOORE: I am not certain what you mean by closes.
    12 MR. ETTINGER: Opposes.
    13 MR. HARRINGTON: Opposes. Excuse me.
    14 MR. MOORE: Oh, opposes. No, I don't believe that is
    15 correct. In fact, in our prefiled testimony we make reference to
    16 the fact that in a proposal that was drafted by Prairie Rivers
    17 Network and the --
    18 HEARING OFFICER TIPSORD: I am sorry. The court reporter
    19 is having trouble hearing you.
    20 MR. MOORE: I am sorry about that. In our prefiled

    21 testimony, I make mention of the fact that the Prairie Rivers
    22 Network, the Sierra Club, the Environmental Law & Policy Center
    23 and the McHenry County Defenders actually proposed a limited de
    24 minimis language. In the course of discussions over that de
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    1 minimis language, it was decided that the Agency's -- that the
    2 approach that the Agency had decided to take in this proposal
    3 makes more sense than the approaches that were -- the many
    4 approaches that were discussed regarding de minimis in the work
    5 group meetings.
    6 Simply because, and we would agree with Mr. Frevert's
    7 earlier testimony from November 17th on this matter, it seemed
    8 that the burden of proof to show a de minimis increase in
    9 loadings far exceeded the burden of proof for demonstrating
    10 nondegradation.
    11 MR. HARRINGTON: Okay. I have no further questions. Thank
    12 you.
    13 BOARD MEMBER FLEMAL: In your prefiled testimony you
    14 recommend that this Board delete the provision in the proposal
    15 that deals with streams of zero 7Q10 flows; am I correct in my
    16 understanding of that?
    17 MR. MOORE: Yes. We don't agree that 7Q10 -- that streams
    18 with the 7Q10 flow of zero should be dismissed from ORW
    19 designation.

    20 BOARD MEMBER FLEMAL: As I read the language as proposed to
    21 us, it is more advisory than an absolute outright prohibition of
    22 allowing those sorts of streams to be --
    23 MR. MOORE: That's correct.
    24 BOARD MEMBER FLEMAL: Do you think that there should be
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    1 some higher test put to low flow streams than might be to other
    2 --
    3 MR. MOORE: No, I think simply because a stream has a 7Q10
    4 flow of zero, it should not be treated any differently than any
    5 other water body. Just because the stream might have a flow of
    6 zero does not mean it is a completely dry stream bed. There
    7 could be significant pools, which still survive despite the fact
    8 that there is no continuous flow in the stream.
    9 In fact, a quick survey of the Agency's current
    10 classification system for waters conducted under the Illinois EPA
    11 and the Illinois Department of Natural Resources biological
    12 stream characterization methodology, shows that a large
    13 percentage of the very highest quality streams, also known as
    14 Class A streams, are, indeed, streams that have a 7Q10 flow of
    15 zero. There are streams such as the Jordan Creek in the North
    16 Fork Vermillion watershed, Jordan Creek in the Salt Fork
    17 Vermillion watershed and Walnut Creek, the Mackinaw.
    18 There is numerous streams that have a 7Q10 flow of zero,
    19 yet exhibit very, very exceptional levels of water quality, and

    20 because of the presence of water year round, albeit not always
    21 flowing water, there are pools that still harbor populations,
    22 thriving populations of mussels, crustaceans, and fish and even
    23 aquatic plants which may be rare and/or of protected status.
    24 BOARD MEMBER FLEMAL: You also make a recommendation, and I
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    1 will read this. It says, Prairie Rivers would also like to
    2 request that the Pollution Control Board consider the
    3 identification of some initial ORW waters for inclusion under
    4 303.206 as part of this rulemaking. Am I to take it that you
    5 would suggest that in the current rulemaking right now that we
    6 identify some ORWs?
    7 MR. MOORE: I think as part of the proceeding it might be
    8 advantageous to consider naming some Outstanding Resource Waters,
    9 which are of clear exceptional quality, are clearly of
    10 significant biological interest, or recreational interest. And I
    11 think there are agencies within the state government that
    12 possibly could even identify those waters for the Board, if the
    13 Board so desired.
    14 BOARD MEMBER FLEMAL: Do you have some candidates that you
    15 would include on such a list right off the top of your head?
    16 MR. MOORE: Right off the top of my head? I think I would
    17 be reluctant to toss out names randomly without considering that
    18 very carefully. But I think there are several streams throughout

    19 the state, particularly in Southern Illinois, that largely reside
    20 within the boundaries of the Shawnee National Forest, for
    21 instance, and I think there are several other streams, such as
    22 the Middle Fork in the Vermillion, which is the State's only
    23 national scenic river which would be a pretty easy candidate to
    24 recognize as an ORW. And I think there is probably a good many
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    1 other streams that could be so recognized as well.
    2 BOARD MEMBER FLEMAL: Your examples, again, are all
    3 streams. We have been led to understand, however, that there may
    4 be waters to which this designation might apply that are not, in
    5 fact, streams. Do you have thoughts or candidates for water
    6 bodies that would fall under this nonstream grouping?
    7 MR. MOORE: Well, again, I am a little apprehensive to name
    8 water bodies right off the top of my head. However, I know one
    9 that does spring to mind, the Voter Bog in McHenry County. I am
    10 sure that there are many other wetlands, sloughs, bogs, that
    11 would be very excellent candidates for an ORW designation.
    12 BOARD MEMBER FLEMAL: Okay.
    13 HEARING OFFICER TIPSORD: Okay. Anything additional?
    14 Okay. Seeing none, thank you very much.
    15 MR. MOORE: Thank you.
    16 HEARING OFFICER TIPSORD: Just a couple of housekeeping
    17 matters. At break, Mr. Ettinger, you had handed me some material
    18 that we had requested from a previous testifier in the Chicago

    19 hearing. Biological stream characterization, a biological
    20 assessment of Illinois stream quality, date stamped September 25,
    21 1996, that was actually printed by the Environmental Protection
    22 Agency in September of 1989. We will admit that as Exhibit
    23 Number 15.
    24 (Whereupon said document was duly marked for
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    1 purposes of identification as Hearing Exhibit 15
    2 and admitted into evidence as of this date.)
    3 HEARING OFFICER TIPSORD: And Kishwaukee River Basin. Is
    4 that correct? Am I saying that correctly?
    5 MR. MOORE: Yes.
    6 HEARING OFFICER TIPSORD: An inventory of the region's
    7 resources by the Illinois Department of Natural Resources. We
    8 will admit that as Exhibit Number 16.
    9 (Whereupon said document was duly marked for
    10 purposes of identification as Hearing Exhibit 16
    11 and admitted into evidence as of this date.)
    12 HEARING OFFICER TIPSORD: And Mr. Ettinger informs me that
    13 these are available from the Department of Natural Resources, and
    14 they are quite nice.
    15 MR. ETTINGER: You want the color version. You don't want
    16 a black and white copy. They are very pretty pictures.
    17 BOARD MEMBER FLEMAL: Can we let the record show that

    18 DeKalb is located on the banks of the beautiful Kishwaukee River?
    19 HEARING OFFICER TIPSORD: We certainly can.
    20 BOARD MEMBER FLEMAL: Thank you.
    21 HEARING OFFICER TIPSORD: Okay. Did you have anything
    22 further today?
    23 MR. ETTINGER: Actually, I had one question or a
    24 clarification that I just wanted to ask regarding the additives
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    1 on treated water.
    2 Did you have occasion to look at Mr. Frevert's testimony
    3 that Mr. Harrington referred to in his question?
    4 MR. MOORE: Yes, I did.
    5 MR. ETTINGER: And what was your understanding of reviewing
    6 that regarding additives?
    7 MR. MOORE: My understanding of the conversation that took
    8 place between Mr. Harrington and Mr. Frevert at the last hearing
    9 seemed to be consistent with the idea that thermal discharges
    10 alone would not have to undergo an antideg analysis if they were
    11 in compliance with Section 316 of the Clean Water Act.
    12 If there were additives in the cooling water to be
    13 discharged, those cooling additives would have to be evaluated
    14 from an antidegradation perspective. And if increased loading of
    15 those additives was proposed, that those would also have to be
    16 examined in the course of an antidegradation analysis, albeit,
    17 probably much more of an abbreviated analysis than the original

    18 one.
    19 MR. ETTINGER: Do you agree with Mr. Frevert's position on
    20 that?
    21 MR. MOORE: I do, indeed, agree with Mr. Frevert's position
    22 on that issue.
    23 HEARING OFFICER TIPSORD: Okay. Anything further? Thank
    24 you very much.
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    1 I would also like to note for the record that Cynthia
    2 Skrukrud had notified me by e-mail that some of the documents
    3 that we had asked her to provide as part of her testimony at the
    4 last hearing are quite lengthy. So she will be submitting the
    5 relevant portions of those in a later filing along with an
    6 explanation to that effect. I forgot to mention that at the
    7 beginning. Thank you.
    8 All right. I think we can go ahead and proceed, then, with
    9 IERG.
    10 MS. HODGE: My name is Katherine Hodge. I am with the law
    11 firm of Hodge and Dwyer in Springfield. And today with me is Ms.
    12 Deirdre K. Hirner, who is the Executive Director of IERG. We did
    13 file prefiled testimony for Ms. Hirner. I do have extra copies
    14 of that here if anyone else would like it. I have copies for the
    15 Hearing Officer, as well.
    16 We would ask that this prefiled be admitted into the

    17 record, but Ms. Hirner would also like to offer just a summary of
    18 this testimony today.
    19 HEARING OFFICER TIPSORD: Okay. We will admit this, then,
    20 as Exhibit Number 17.
    21 (Whereupon said document was duly marked for
    22 purposes of identification as Hearing Exhibit 17
    23 and admitted into evidence as of this date.)
    24 HEARING OFFICER TIPSORD: Ms. Hirner, we will have you
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    1 sworn in.
    2 (Whereupon the witness was sworn by the Notary
    3 Public.)
    4 MS. HIRNER: Thank you very much. On behalf of IERG and
    5 our member companies, I would like to thank the Board for the
    6 opportunity to present testimony today. As Ms. Hodge said, it is
    7 perhaps not a summary of our prefiled testimony, but it will be
    8 an abbreviated version of what we have presented.
    9 As Ms. Tipsord has noted and has been discussed earlier,
    10 IERG does hope that the Board will look favorably on a request
    11 for a third hearing to allow us to present additional testimony.
    12 Today, I will offer information about IERG's general areas
    13 of concern, again, with our intent to offer specific proposed
    14 revisions to the Agency's proposal and supporting documentation
    15 at a next hearing, if you should decide to grant that.
    16 IERG has been an active participant in the Agency's

    17 antidegradation work group process, and although we did not
    18 concur that a regulatory initiative and requisite rulemaking were
    19 necessary for the Agency to continue to conduct its
    20 antidegradation reviews, but rather, it was done as a means to
    21 avoid threatened litigation, as attested to by Mr. Frevert at the
    22 first hearing, IERG did participate in the spirit of moving the
    23 process forward.
    24 However, throughout the process, we have maintained that
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    1 the current antidegradation review procedures used by the Agency
    2 are technically sound, legally sufficient, and are conducted in a
    3 manner that is consistent with the intent of federal law and
    4 regulations. If Illinois' implementation procedures are not up
    5 to par in any respect, they are in those areas involving
    6 designating Outstanding Resource Waters and in public
    7 participation.
    8 While we understand the Agency references antidegradation
    9 reviews in the public notice fact sheets that are prepared for
    10 all NPDES permits, we do believe a lack of detail in the fact
    11 sheets may lead the public to question the adequacy of the
    12 Agency's antidegradation review.
    13 Noting the two potential deficiencies early on in the
    14 process, IERG had suggested a limited revision to the procedures
    15 on which the Agency relied, involving first an expansion of the

    16 information regarding the antidegradation reviews to be included
    17 on the fact sheets and, second, a process for designating ORWs,
    18 or Outstanding Resource Waters, in accordance with the procedures
    19 for adjusted standards. Primarily we had looked at those for the
    20 class three groundwater classification.
    21 Now, IERG does not dispute the principle that the Clean
    22 Water Act requires an antidegradation review in certain cases.
    23 Rather, our concerns are with the procedures the Agency and the
    24 regulated community must undertake in certain specific cases. We
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    1 are pleased that Mr. Frevert's previous testimony indicated a
    2 willingness to consider changes to clarify the intent of the
    3 Agency's proposal. And with that in mind, I will highlight
    4 IERG's general areas of concern. Again, hopefully we will have
    5 the opportunity to offer some very specific recommendations and
    6 some greater detail at a future hearing.
    7 First, the proposal does not contain a significance test to
    8 determine the need for a comprehensive antidegradation review.
    9 Second, the proposal contains only a limited number of
    10 exceptions to an individual antidegradation demonstration.
    11 Third, the proposal requires extensive up-front submissions
    12 from an NPDES permit or 401 certification applicant.
    13 Fourth, the proposal does not contain sufficient
    14 requirements for demonstrating ORW designation.
    15 Fifth, the proposal lacks clarity in certain areas. And I

    16 will discuss each of these in a little greater detail.
    17 First, I would turn to the significance determination. The
    18 business community believes that if procedures are adopted they
    19 should be similar to the tiered approach suggested in Region 8's
    20 guidance document, a copy of which we provided to the Board at
    21 the first hearing.
    22 The first step should be to determine whether an increased
    23 load is of such significance that a comprehensive antidegradation
    24 assessment is required or whether such load, by it's nature,
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    1 warrants an insignificance determination. In such an instance,
    2 the finding of insignificance, in and of itself, would be, we
    3 believe, an appropriate antidegradation review.
    4 Secondly, regarding exceptions, if the antidegradation
    5 review process is to effectively function in the real world and
    6 not to cause the Agency to bog down in an endless review of
    7 permits that have virtually no environmental impact, certain
    8 activities, such as those in proposed Section 302.105(d) that are
    9 not subject to individual demonstration pursuant to the Board's
    10 standard, are both necessary and appropriate.
    11 During the work group process, IERG had proposed additional
    12 exceptions which we believed adhered to the standards requirement
    13 to maintain and protect existing uses and to avoid unnecessary
    14 deterioration of the water. The Agency did not include these,

    15 our recommendations of exceptions, in its proposals. We assume
    16 that is because the Agency did not believe them to be workable or
    17 federally approvable.
    18 However, in reviewing the antidegradation procedures of
    19 other Region 5 states, IERG has found similar exceptions included
    20 in their antidegradation procedures and, apparently, those have
    21 been approved by the U.S. EPA. Based on this review, we do
    22 intend to offer additional exceptions in the future and we will
    23 provide justification for those exceptions.
    24 Regarding the third area, up-front data submissions, IERG
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    1 agrees the Agency should have the information it needs to wholly
    2 fulfill its obligation to conduct antidegradation determinations
    3 on proposed increased loadings. Section 302.105(c)(2) requires
    4 an applicant to demonstrate the standard is not exceeded, that
    5 existing uses are protected, that all technically and
    6 economically reasonable measures are incorporated and that
    7 community-wide benefits accrue.
    8 The Agency's proposed implementation procedures, and that
    9 was proposed Part 354, specify that a permit applicant must, and
    10 I emphasize the word must, identify and characterize the waters,
    11 identify and quantify the proposed load increase and its
    12 potential impacts, determine the social and economic benefits of
    13 the activity, and provide a comprehensive alternatives
    14 assessment.

    15 In both instances, as we read the language, this
    16 information must be provided by the applicant up-front for each
    17 loading, regardless of whether the loading is significant, or
    18 whether any lowering of water quality is determined, or whether
    19 the IEPA has access to the information from other sources or,
    20 indeed, has the information in its possession.
    21 IERG is not opposed to providing such information when it
    22 is truly deemed necessary to conduct a thorough antidegradation
    23 review. And Mr. Frevert has testified that the Agency will use
    24 its discretion requesting this information. However, IERG
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    1 believes that neither the language of proposed Part 302.105 nor
    2 Part 354 allows the Agency this discretion.
    3 Regarding ORW demonstration, IERG recognizes that an
    4 outstanding resource water designation carries with it the
    5 potential for profound economic impact and environmental
    6 restrictions on surrounding lands and on the owners of those
    7 properties. Such designation requires a rigorous process based
    8 on definitive criteria with the full input of all affected
    9 parties through public hearings and through notification of all
    10 surrounding landowners. The burden must be on the petitioner to
    11 fully articulate and to prove the justification for the
    12 designation.
    13 The business community could support a Board rule for

    14 designating ORWs which contained sufficient requirements for the
    15 demonstration of the designation. IERG intends to submit
    16 specific language and supporting testimony in this regard.
    17 Regarding lack of clarity on parts of the proposal, the
    18 regulated community has identified three primary areas of
    19 concern. First, what is the trigger for an antidegradation
    20 review? Is it allowing the lowering of water quality, as noted
    21 in 302.105(c)(1), and that is the lowering of the water quality
    22 of a high quality water. Is it any increase in pollutant loading
    23 subject to an NPDES permit?
    24 The regulated community holds that the trigger should be an
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    1 increase in pollutant loading for which a new or increased permit
    2 limit would be required. We believe the Agency concurs with this
    3 based upon Mr. Frevert's previous testimony, but we do believe
    4 this needs to be clarified.
    5 Secondly, the proposed Board rule references loading
    6 subject to an NPDES permit. The proposed Agency's implementation
    7 procedures reference any permit application for a new, renewed,
    8 or modified NPDES permit.
    9 When do the requirements for an antidegradation review
    10 apply? The two references in the Board rule and in the Agency's
    11 proposed Part 354 lack consistency, and we believe this should be
    12 clarified.
    13 Third, what is the relationship between increased loading

    14 and the lowering of water quality? And this distinguishing
    15 between the two has raised some questions in our mind. Do all
    16 increases in pollutant loadings require an antidegradation
    17 demonstration? Do proposed increased loading trigger conscious
    18 thought on the part of the Agency to review and determine whether
    19 instream concentration is going to be better than worse? And is
    20 this an antidegradation demonstration?
    21 Are new, renewed, or modified permits for operation having
    22 no proposed increase in any pollutant parameter activity or
    23 loading exempt from any type of antidegradation review? Is the
    24 trigger for an antidegradation review, in fact, a two-step
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    1 process with the first step being that a proposed actual increase
    2 in loading will occur, and the second step being that that
    3 loading must lower water quality? Our question is what standard
    4 applies and when does it apply?
    5 In conclusion, I would like to note that substantive
    6 changes to federal policy, rules, and guidance in the
    7 antidegradation arena are underway. They will not be forthcoming
    8 for at least another year. The proposed changes to Illinois'
    9 antidegradation standard and procedures currently before us may
    10 or may not comply with the federal provisions, which are yet to
    11 come. The scope of an antidegradation review must be with the
    12 intent of the Clean Water Act. We agree.

    13 However, realistically, effective use of the resources of
    14 the regulators and the regulated necessitates a reasonable cut
    15 regarding applicability for purposes of review. The decision as
    16 to whether a discharge constitutes unacceptable degradation rests
    17 with the Illinois EPA, and we believe it must be made on the
    18 basis of a blend of solid information, experience, and
    19 professional judgment. Alternative options must be based in
    20 reality and on clearly stated rationale decision-making criteria.
    21 To do otherwise, would simply hold each and every permit decision
    22 open for appeal.
    23 We believe the business community is rightly concerned that
    24 an open-ended review will, rather than yield a final decision,
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    1 avoiding third-party permit appeals, provide additional impetuous
    2 for filing such appeals.
    3 And, finally, in any petition to change a rule or make a
    4 regulatory designation, the burden of proof rests with the
    5 petitioner. Such premise must hold true for the designation of
    6 ORWs.
    7 Again, I thank you for the opportunity to testify before
    8 you today, and I would be pleased to answer any questions.
    9 HEARING OFFICER TIPSORD: Are there any questions?
    10 MR. ETTINGER: Yes.
    11 HEARING OFFICER TIPSORD: Go ahead.
    12 MR. ETTINGER: I can't find the reference in your

    13 testimony, but you talked about the federal rules on this being
    14 under consideration and you make reference, and I forgot the guys
    15 name. Is it Bob Shippen?
    16 THE WITNESS: Bob Shippen.
    17 MR. ETTINGER: Yes, Shippen. He came and spoke to the
    18 group. Have you heard anything about this since Mr. Shippen
    19 spoke to the group a year or two ago?
    20 MS. HIRNER: He spoke -- it was in 1999, and I have not
    21 heard anything since that time.
    22 MR. ETTINGER: So you don't know anything about any changes
    23 to the antidegradation rules since 1999?
    24 MS. HIRNER: Since he spoke at our hearing. Mr. Frevert
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    1 spoke today and said today that the headquarters had briefed us
    2 at that particular meeting.
    3 MR. ETTINGER: Yes, Mr. Shippen was from headquarters.
    4 MR. MOORE: You stated in your testimony that the Agency
    5 currently summarizes the antideg analysis in the NPDES permit
    6 fact sheets?
    7 MS. HIRNER: They put some information -- our understanding
    8 is, based on testimony at the first hearing, that they do outline
    9 some of that information in the fact sheets, that they reference
    10 it in their fact sheets. I believe at the first hearing Mr.
    11 Frevert said that when they put the NPDES permit applications out

    12 for public review, that the information is included.
    13 MR. MOORE: I guess I would not say this as a question, but
    14 as a -- as possibly a question for the Agency. I think what Mr.
    15 Frevert's testimony was, was that they would provide the
    16 antidegradation analysis if a member of the public requested it.
    17 HEARING OFFICER TIPSORD: Mr. Frevert, do you have any
    18 comment on that since they are discussing your testimony?
    19 MR. FREVERT: I was in the back of the room and the
    20 acoustics aren't so good.
    21 MR. MOORE: I just wanted to clarify, does the Agency -- I
    22 think I know the answer already, but does the Agency routinely
    23 summarize antideg findings in the permit fact sheets?
    24 MR. FREVERT: Yes. In cases where we don't, it is an
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    1 oversight and we should.
    2 MR. MOORE: Okay. I guess we will submit some sample fact
    3 sheets, because I have never seen one.
    4 HEARING OFFICER TIPSORD: Any other questions?
    5 Yes, Connie at the back of the room.
    6 MS. TONSOR: I did have a question referring back to your
    7 testimony. You suggest that and you state that IERG's position
    8 is that the current standard is sufficient. And in your
    9 testimony reviewing the proposed standard, you indicate that one
    10 of the deficiencies which you see is that there is not a
    11 significance of the degradation caused by the increased activity

    12 of the pollutant loading or the increased action.
    13 You suggest that the Board needs to include in the new
    14 standard a significance determination. The current
    15 nondegradation standard, however, if you remember it, does it
    16 contain a significance criteria? And I have that regulation with
    17 me. It is up front if you want to look at it. It is 302.105.
    18 MS. HIRNER: I think if you -- if our testimony does not
    19 state it clearly, what the intent of our testimony is, is that
    20 the review procedures currently used by the Agency to conduct its
    21 antidegradation reviews are sufficient and compliant with the
    22 intent of the federal language.
    23 (Ms. Tonsor showing document to Ms. Hirner.)
    24 MS. TONSOR: If I understood, however, the gist of what you
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    1 were stating, was that you wanted somehow in the standard, that
    2 the Board is considering, there to be an element where once there
    3 is a decision that there is an increase in pollutant loading and
    4 it is more than a de minimis increase, before an antidegradation
    5 review would be required or a full review, it would have to be a
    6 significant degradation.
    7 MS. HIRNER: I have really made no mention of de minimis in
    8 my testimony.
    9 MS. TONSOR: Okay. Before -- but you did talk about the
    10 significance as being an area of deficiency.

    11 MS. HIRNER: What we stated was that the first step should
    12 be to determine whether a permit action is of such significance
    13 that a formal antidegradation review is necessary. And when we
    14 refer to the formal antidegradation review, I believe that we
    15 look at the characteristics of the water and the characteristics
    16 of the loading and then we go on to social and economic
    17 justification and description of all alternatives. That is, in
    18 my mind, what a formal antidegradation review is.
    19 MS. TONSOR: In --
    20 MS. HIRNER: Now -- may I finish?
    21 MS. TONSOR: Sorry. Go ahead.
    22 MS. HIRNER: Thank you. Then we go on to say that if, if
    23 the Agency reviews an activity or a proposed loading, and they
    24 find that by the nature of that it is insignificant in that
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    1 significant being causing an unacceptable lowering in water
    2 quality, so if it is insignificant and does not do that, that
    3 finding is an appropriate antidegradation review.
    4 MS. TONSOR: Is the significant trigger currently a part of
    5 the Board's standard under 302.105?
    6 MS. HIRNER: I am not alluding to the current Board
    7 standard. I am alluding to the review processes.
    8 MS. TONSOR: Okay. And then your suggestion that the
    9 Agency add a significance determination refers to the
    10 administrative procedures for implementing the Board's standard?

    11 MS. HIRNER: My understanding, as I look at the Board, and
    12 this is my understanding, and correct me if I am wrong, as I look
    13 what is before the Board today, there are two things described.
    14 One thing being the standard, and the second thing being the
    15 review necessary to determine whether or not an issue meets the
    16 standard. My argument or my testimony does not relate to the
    17 standard. It relates to the review processes and the information
    18 required to conduct those reviews.
    19 MS. TONSOR: And you indicate that a review should not be a
    20 full nondegradation, antidegradation review, unless there is a
    21 decision made that the increased loading is significant?
    22 MS. HIRNER: The Agency last -- at first hearing, the
    23 Agency itself stated that the degree of information required and
    24 the type of review that is conducted for each and every
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    1 particular proposed loading will be done on a case by case basis
    2 and will vary. As we read the language that is before us, both
    3 in the proposed Board -- in the Board proposal and in the
    4 proposed Part 354, we see that that language does not give the
    5 Agency any discretion in its ability to ask for certain types of
    6 information or, indeed, to look at the activity on a case by case
    7 basis.
    8 MS. TONSOR: So you are -- I am sorry. Go ahead. Are you
    9 done?

    10 MS. HIRNER: Yes.
    11 MS. TONSOR: So your concern is not so much with the water
    12 quality standard, the 302.105, but is with the implementation
    13 rules that are offered as a -- for informational purposes for the
    14 Board as an exhibit in 354?
    15 (Ms. Hodge and Ms. Hirner confer briefly.)
    16 MS. HIRNER: My concern goes to both. And as I said --
    17 MS. TONSOR: Okay.
    18 MS. HIRNER: May I?
    19 MS. TONSOR: Sure, sure.
    20 MS. HIRNER: As I said, in the language of the Board, there
    21 is the standard and then there are, in essence, review procedures
    22 and --
    23 MS. TONSOR: Criteria.
    24 MS. HIRNER: There are criteria. My concern is not with
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    1 the standard. We recognize that there is an antidegradation
    2 standard. My concern is with --
    3 MS. TONSOR: And then are you --
    4 MS. HIRNER: -- the review procedures.
    5 HEARING OFFICER TIPSORD: Ms. Tonsor, please let her
    6 finish.
    7 MS. TONSOR: Your concern is with the criteria that are
    8 folded into 302.105?
    9 MS. HIRNER: Yes.

    10 MS. TONSOR: Okay. So that your concern -- and we need to
    11 clarify language. I am reviewing the 302.105 as the water
    12 quality standard, which includes criteria for the Agency's
    13 review.
    14 When you look at language of 302.105 and compare it with
    15 the existing 302.105, is there a significance test for
    16 nondegradation in existing 302.105?
    17 MS. HIRNER: My concern is not with the existing standard
    18 stated in 302.105. My primary area of concern is with the
    19 proposed 302.105(c)(2) in the proposal currently before the
    20 Board.
    21 MS. TONSOR: Okay.
    22 MS. HIRNER: Those, I think, are the review procedures or
    23 review criteria.
    24 MS. TONSOR: So the point that I would want to ask you is,
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    1 it is not IERG's position that the Board should do or in the
    2 proposed rulemaking, make an antidegradation rule which is less
    3 protective than its current rule? That is not what IERG is
    4 proposing?
    5 MS. HIRNER: No.
    6 MS. TONSOR: I am sorry. I didn't hear you.
    7 MS. HIRNER: We are asking -- what IERG is asking is that
    8 -- and I believe the Agency has said this, and I think Mr.

    9 Frevert made the point. That each and every activity is subject
    10 to the standard. But the degree of review, and I believe -- I
    11 believe in his testimony at the first hearing he said that there
    12 is a great deal of difference between being subject to the
    13 standard and being subject to an individual review or being
    14 subject to an individual demonstration. And that the Agency
    15 could not concur with any activity or any type of process that
    16 would say something was not subject to the standard. But could,
    17 indeed, entertain recommendations regarding the degree of review
    18 that each and every activity must comply with or must have. I
    19 have no argument with what Mr. Frevert said.
    20 MS. TONSOR: Good. Did Mr. Frevert use the word in your
    21 memory, that we would make a significance decision?
    22 MS. HIRNER: Actually, Mr. Frevert used the term
    23 significant on a number of occasions. If you --
    24 MS. TONSOR: In?
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    1 MS. HIRNER: In his testimony. If you would give me a
    2 moment, I can look through and find those.
    3 MS. TONSOR: That is fine.
    4 MR. ETTINGER: Well, may I -- could I object? Mr.
    5 Frevert's testimony says what Mr. Frevert's testimony says. I
    6 don't think it serves any purpose for Ms. Hirner to go through
    7 his testimony and try and interpret what Mr. Frevert said here.
    8 MS. TONSOR: Nor do I want to unduly utilize the time that

    9 we have today. The question that I had asked, which Ms. Hirner
    10 answered, was whether it was their intent that the standard be
    11 less protective and she said no. So I think that's the point I
    12 wanted to get to. That's all I had.
    13 HEARING OFFICER TIPSORD: Okay. Thank you.
    14 BOARD MEMBER GIRARD: Can I ask a related question?
    15 HEARING OFFICER TIPSORD: Sure.
    16 BOARD MEMBER GIRARD: Ms. Hirner, going back to your
    17 proposal for an original significance test, what criteria would
    18 you suggest should be used in that original significance test?
    19 MS. HIRNER: I think right now that is why we had asked for
    20 a third hearing, to be quite honest with you, because we are in
    21 the process of reviewing both the Region 8 document, which based
    22 upon our investigation is the only regional document that has
    23 been available, made available to any of the states to guide it
    24 in its activities. We are also in the process of reviewing the
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    1 significance determinations that have been included in the other
    2 Region 5 state standards. And so had we been able to clearly
    3 define what IERG members believe should be that criteria, we
    4 would have offered that today. Unfortunately, we are still in
    5 the process of looking through those various criteria.
    6 BOARD MEMBER GIRARD: Thank you. We look forward to seeing
    7 it.

    8 HEARING OFFICER TIPSORD: Okay. Is there anything further?
    9 Okay. Thank you very much.
    10 MS. HIRNER: Thank you.
    11 MS. HODGE: Thank you.
    12 HEARING OFFICER TIPSORD: At this time we will take an hour
    13 lunch break. We will reconvene around 2:00.
    14 (Whereupon a lunch recess was taken from 1:05 p.m.
    15 to 2:15 p.m.)
    16
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    1 A F T E R N O O N S E S S I O N
    2 (December 6, 2000; 2:15 p.m.)
    3 HEARING OFFICER TIPSORD: We are back on the record.
    4 MS. FRANZETTI: My name is Susan Franzetti. I am here on
    5 behalf of the American Bottoms Regional Wastewater Treatment
    6 Facility, owned by the Village of Sauget, Illinois.
    7 As I think is reflected in the prefiled testimony of Ms.

    8 Robin Garibay, who is sitting to my right, many aspects of the
    9 Agency's proposal both deserve support and we do support them.
    10 Our concerns relate only to a limited number of issues in the
    11 proposal and in certain respects what the Agency's testimony has
    12 been in this proceeding is consistent with our views, but we
    13 don't believe that the substance of the testimony has been
    14 reflected in the language of the proposed Board rules.
    15 So in order to underscore the importance of addressing
    16 these issues and the language of the Board rules, we are offering
    17 the testimony of Robin Garibay. She is a principal of the Advent
    18 Group. She has a significant amount of experience in this area
    19 based on her participation in other state antidegradation
    20 rulemaking proceedings, as well as her involvement in preparing
    21 antidegradation demonstrations on behalf of dischargers. So with
    22 that, I will turn it over to Ms. Garibay.
    23 HEARING OFFICER TIPSORD: Just as a point of clarification,
    24 are you going to enter her testimony as an exhibit?
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    1 MS. FRANZETTI: As an exhibit, yes.
    2 HEARING OFFICER TIPSORD: Okay.
    3 (Whereupon the witness was sworn by the Notary
    4 Public.)
    5 MS. GARIBAY: As Susan indicated, my name is Robin Garibay.
    6 I am a principal with the Advent Group. On behalf of American

    7 Bottoms Regional Wastewater Treatment Facility, I reviewed the
    8 Illinois Agency proposed antidegradation rules and the
    9 implementation procedures, and there are many provisions that are
    10 reasonable and appropriate.
    11 There are certain areas, though, that could and should be
    12 revised. These revisions include inclusion of a proper standard
    13 of when the antidegradation rules apply to high quality waters,
    14 the inclusion of a provision that the antidegradation rules do
    15 not apply to a de minimis increase in loading to a receiving
    16 water, and an addition of an assessment of the significance of
    17 the lowering of water quality, prior to the final two provisions
    18 of the antidegradation demonstration review, a reasonable
    19 alternatives assessment, and a social and economic benefit
    20 assessment. This assessment would occur early in the NPDES
    21 permitting process.
    22 By the way, I am not going to read in my testimony. I am
    23 just going to summarize the highlights.
    24 The first issue is on when the antidegradation standard
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    1 applies to a discharger; there seems to be a conflict that has
    2 been pointed out by other presenters about a conflict between the
    3 Agency rule and the Board rule. Basically the Board language has
    4 an "any increase" provision triggering the application of the
    5 antidegradation standard. Whereas, the Board rule seems to imply
    6 that -- I am sorry -- the Agency rule seems to imply that the

    7 trigger is the request for a new or a modified permit limit.
    8 So one of the questions may be why is the Agency rule
    9 better than the Board language and why would the Board language
    10 potentially need revisions. So I have a series of points on
    11 that. And one of them is that the existing permit limits and
    12 conditions developed for a discharger were based on the permit
    13 renewal application data that would have shown the inherent
    14 variability that occurs in a discharge. Therefore, the existing
    15 permit limit and conditions reflect the fluctuations that occur,
    16 particularly for a POTW. In other words, any increase is
    17 captured in the establishment of the permit limits and
    18 conditions.
    19 Also, the existing permit limits and conditions would have
    20 considered attainment of water quality standards by the
    21 dischargers. Those water quality standard provisions in this
    22 state have always included an antidegradation standard. For a
    23 POTW in particular, there is an exhaustive review process of
    24 making sure that the POTW does attain water quality standards.
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    1 It starts off first with the approval of the design, then the
    2 construction grant program, and the construction permitting
    3 program.
    4 Then the second review occurs when they get the NPDES
    5 permit to operate the POTW. And, finally, when they take over

    6 their pretreatment program, and their pretreatment program is
    7 approved, once again, an assessment that that pretreatment
    8 program will assure attainment of the water quality standards
    9 occurs.
    10 One of the needs for having a nice, clear benchmark for
    11 understanding when the antidegradation standard applies, is so
    12 the discharger knows when they are in compliance and when they
    13 are not. If the antidegradation standard is any increase, there
    14 would not be a clear benchmark for them understanding when I have
    15 triggered the need to review my compliance with the
    16 antidegradation standard. If the trigger is a request for a new
    17 or increased permit limit, they know exactly when the
    18 antidegradation standard applies. That also applies for any
    19 stakeholders who are interested in what is going on with the
    20 permitted facility.
    21 Finally, one of the things that we have seen in other
    22 states, it is basically a penalty for a good performer. Without
    23 having a clear benchmark of being a new permit limit or a
    24 modified permit limit and you basically are telling somebody if
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    1 you make any increase over your existing effluent quality, you
    2 are treating the whole requirements of the antideg review
    3 process. Whereas, if it is the new or increased permit limit,
    4 they may sit there and continue looking for opportunities to
    5 improve their effluent quality.

    6 If you have a permit limit as a clear trigger, they are
    7 going to continue to look for ways to improve their effluent
    8 quality. And I guess as people have mentioned, the whole process
    9 of trying to decide whether a fluctuation or, for instance, for a
    10 POTW that does have inherent invariability in their discharge due
    11 to the way their industrial users operate, the demands their
    12 commercial users may have on their products, and then any
    13 fluctuations because of wet weather event, if any increase is a
    14 trigger, both the Agency and the POTW are going to be in this
    15 sort of almost never-ending process of applying for any
    16 degradation demonstrations and will be quite burdensome on the
    17 resources for both the POTW and for the Agency.
    18 The second suggested revision was the inclusion of de
    19 minimis. In other words, basically having it set out a clear
    20 benchmark for what is a small, a minuscule, an insignificant de
    21 minimis increase. Based on the Agency testimony, they do not
    22 appear to be opposed to a de minimis approach, with the caveat
    23 that if it is not burdensome. There are approaches to defining
    24 de minimis, as I have included in the prefiled testimony, that
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    1 show that this is not a burdensome process to either the Agency
    2 or to the district, as it uses the same data that is needed for
    3 determining whether a discharger should have a water quality
    4 based effluent limit. The de minimis approach ends up

    5 establishing an objective way for understanding how to implement
    6 the antidegradation standard. All of the stakeholders will know
    7 what the definition is of minuscule, small, or insignificant. It
    8 would be a nice, clear, bright line definition of an activity
    9 that triggers antidegradation review.
    10 It also allows for consistency. There would be consistent
    11 interpretation of what would be defined as a small increase, not
    12 warranting full antidegradation review. Most importantly, in
    13 some ways, it would not delay projects unnecessarily. It would
    14 allow the resources, once again, of the Agency and the discharger
    15 to be focused on those projects that do have significant impact
    16 and warrant full antidegradation review.
    17 Sort of by way of example, I was going to discuss one of
    18 the projects that we have been recently involved in as a way the
    19 de minimis approach worked in the NPDES process. This was a
    20 facility that was adding a better engineered production process
    21 that also had the benefit for the facility of increasing their
    22 production. They were required to have a permit modification
    23 because the increased production was going to revise their
    24 categorical best available technology limits, which were
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    1 production based.
    2 Knowing that the antidegradation demonstration process can
    3 be cumbersome, time-consuming, and more importantly for them,
    4 unpredictable in outcome, part of the overall project was to

    5 manage the wastewater to assure that the effluent quality would
    6 be at levels below the well-defined de minimis concept in this
    7 state. An assessment of the proposed loading increased to show
    8 that the impact of the receiving stream would be below ten
    9 percent of the unused loading capacity was presented to the State
    10 Environmental Agency, and it was presented as part of the permit
    11 modification application.
    12 In this case, and by way of example, we knew that the water
    13 quality based effluent limit for lead would have been 12 parts
    14 per billion as a monthly average. But in order to keep the
    15 discharge level of lead below the ten percent of unused loading
    16 capacity, which was this State's bright line threshold for
    17 defining de minimis, the facility needed to limit its lead and
    18 its effluent to a level of six parts per billion as a monthly
    19 average.
    20 So the project was engineered to assure that the discharge
    21 level would be less than six parts per billion lead. This was
    22 not the most cost effective way for the facility to manage their
    23 wastewater, but in managing their wastewater this way they knew
    24 that they were going to have a de minimis -- they would fit the
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    1 definition of de minimis and the project could move forward in a
    2 timely fashion.
    3 This information is all being submitted to the state agency

    4 and at this time it is being well received and the permit is in
    5 the process of being modified. Basically what happened in having
    6 a bright line definition of de minimis, it has encouraged
    7 facilities to actually look at opportunities to engineer their
    8 activities and their expansions to go beyond best available
    9 technology, and in this case to go beyond water quality based
    10 effluent limits.
    11 So I see a well-defined de minimis threshold as an
    12 extremely useful mechanism to allow efficient and effective
    13 implementation of the antidegradation standard. As in my
    14 prefiled testimony and attachments to it, the use of an allowable
    15 and acceptable small increase and de minimis approach has been
    16 used in other Region 5 states with U.S. EPA approval of those
    17 regulations.
    18 The information and data required to conduct a de minimis
    19 assessment of whether the increase is below a bright line
    20 threshold is essentially the same information that is needed to
    21 develop a water quality based effluent limit. Basically a bright
    22 line threshold allows projects that have minimal adverse impacts
    23 to move forward without creating burdens on the Agency or the
    24 stakeholders. And more importantly, it can encourage wastewater
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    1 management beyond best available technology levels and in some
    2 cases beyond water quality based effluent levels.
    3 The third opportunity for improvement of the Board language

    4 is the discussion of significance and significance assessment.
    5 Basically this would be for those proposed increases that may not
    6 warrant all three provisions of the antidegradation review to
    7 apply. What the request is, is that the three provisions of the
    8 antidegradation -- the Board antidegradation review, are showing
    9 that designated and existing uses are fully protected, a
    10 demonstration that all technical and economically reasonable
    11 measures to control the increase have been taken, what we have
    12 been calling the reasonable alternatives analysis, and a showing
    13 of social and economic benefit.
    14 The latter two requirements can be and are burdensome to
    15 satisfy, and in many cases unnecessary where the proposed
    16 increase will not significantly impact water quality. So
    17 basically what the request is, is to have a specific analysis of
    18 whether the proposed increase in loading will have an
    19 insignificant or a significant affect on the water quality as a
    20 first step in the NPDES permitting process before requiring the
    21 latter two requirements to be -- for the information to be
    22 submitted and then decisions made on that information.
    23 One of the questions that has come up and is being talked
    24 about is, well, what is burdensome about those latter two
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    1 requirements. I am not going to discuss the burden of doing a
    2 social and economic impact analysis. I am not a sociologist and

    3 I am not an economist. But on a reasonable alternatives analysis
    4 I thought it would be good to sort of talk through a theoretical
    5 example and then an actual example that, once again, occurred in
    6 the state as part of an antidegradation review.
    7 Sort of a theoretical example for a POTW would be an
    8 industrial user coming in, and once again, the permit -- the
    9 discharger, the POTW, would need to modify their permit limit for
    10 some parameter. An example I gave in the prefiled testimony was
    11 looking at a semi-conductor facility coming in and needing to
    12 change the discharge level for fluoride.
    13 Well, one of the things in doing a reasonable alternatives
    14 analysis for a POTW is how far do you go, when does it end, and
    15 how many iterations do you look at, and who makes the
    16 determination of what is reasonable? Well, let's assume the POTW
    17 makes the determination of what is reasonable and not the
    18 industrial user. Well, that would be asking the semi-conductor
    19 to look at different pretreatment options for fluoride,
    20 potentially even looking at changing manufacturing specs, which
    21 for a semi-conductor, they have to meet such tight quality
    22 assurance for their consumers that changing manufacturing specs
    23 is not always a good idea.
    24 Potentially it would be asking whether you could do
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    1 pollutant trading within your pretreatment program, within your
    2 industrial users. And then the POTW would also have to look at

    3 end of pipe control measures itself for fluoride in this case.
    4 That process takes a long time to conduct and many
    5 engineering hours. Part of it is because -- part of the time
    6 consumed in that is because you will never have just one
    7 technology. You will never have just one source reduction,
    8 pollution prevention measure, and in the case that we have talked
    9 through on the fluoride, the increase in fluoride was less than
    10 ten percent of the unused loading capacity. So the question is,
    11 why spend all of that engineering time and effort going into the
    12 final two provisions of the antidegradation demonstration review
    13 if at the first step there would have been a showing that there
    14 was not a significant lowering of water quality.
    15 These materials did become a major stumbling block to a
    16 recent project that still is not completed, and that had to do in
    17 support of a dredging project. For this particular dredging
    18 project we both needed, obviously, a 401 certification as well as
    19 an NPDES permit for the dewatered water from the sediments.
    20 When you are looking at what are the reasonable
    21 alternatives for a dredging project, you are not only looking at
    22 the actual technique for dredging and the management of those
    23 sediments, but more importantly what are the treatment
    24 technologies to remove any constituents in the dewatered water.
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    1 One of the things that you have to remember in a reasonable

    2 alternatives analysis is that you have to consider multi-media
    3 impacts.
    4 So for instance, yes, reverse osmosis will pretty much
    5 remove most chemicals from water, but you generate a huge amount
    6 of solid waste. Another example is, yes, you can remove metals
    7 using classical precipitation techniques, but you are going to
    8 generate salts in return. So at what point does your reasonable
    9 alternatives analysis end. Okay. I got rid of the metals, but I
    10 have added salt. Now I need to go manage the salt. Once again,
    11 this is having to do with an alternatives analysis that occurred
    12 before we went to see whether salt or the metals would even have
    13 a significant impact on our water quality.
    14 In this case we ended up looking at four different
    15 wastewater treatment options and the discussion of the evaluation
    16 of just four different wastewater treatment options consumed two
    17 years and $100,000.00 worth of engineering fees. This project
    18 has been and is still being delayed by the NPDES permitting
    19 process. Yet, this is a project that everybody acknowledges is
    20 going to have a major impact on water quality in the ecosystems
    21 because of its removal of contaminated sediments.
    22 MS. FRANZETTI: A beneficial impact.
    23 MS. GARIBAY: Yes, it is beneficial, yes. One solution to
    24 this dilemma would have been to have had the assessment of
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    1 whether the discharge would have had a significant water quality

    2 impact. That assessment was already conducted as part of the 401
    3 certification. So we knew up-front that this discharge was not
    4 going to have a significant impact on water quality. But because
    5 there was not, at that point, the ability to say, hey, this is
    6 not going -- this is going to have an insignificant impact on
    7 water quality. We should proceed with this project, proceed with
    8 the rest of the NPDES permitting, we were still stuck in this two
    9 year cycle of having to look at all of the reasonable
    10 alternatives analysis.
    11 One of the questions has been, well, what does it take to
    12 look at significance. How do you assess whether an increase
    13 results in an insignificant lowering of water quality. One of
    14 the discussions has been what information does it take. Well,
    15 fortunately, it pretty much takes the same information that is
    16 needed to assess if you are complying with water quality
    17 standards. The discharger supplies information on the effluent
    18 concentration and the effluent flow. Where IEPA does not have
    19 toxicity data on a parameter, the discharger might provide that
    20 toxicity data. Where the IEPA does not have receiving water
    21 information with respect to physical, chemical, biological
    22 characteristics, the discharger may provide that information.
    23 Then the Agency could then determine whether the resulting
    24 increase in the receiving water concentration is chemically,
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    1 biologically, or physically significant. This is not an
    2 assessment that is new to the Agency or new to, you know,
    3 consultants like myself. This is an assessment that we routinely
    4 make. What does it entail? Well, maybe for the chemical
    5 assessment we look at whether it is analytically detectable. Is
    6 the change analytically detectable and is it statistically
    7 significant.
    8 If we are looking at biological significance, there are
    9 many tools available, such as bio assessments, bio criterias, eco
    10 risk assessments, looking at whether there is any documentation
    11 that organisms responds to that change in instream concentration.
    12 But this -- these are assessments that are conducted in Clean
    13 Water Act programs.
    14 What the requested revision is, is to provide a discharger
    15 with the opportunity and right under the Board's rules to make a
    16 showing that its proposed increase in pollutant loading will not
    17 significantly lower water quality before it must spend the
    18 resources to generate the information concerning reasonable
    19 alternatives and the social and economic benefits of the proposed
    20 activity.
    21 The Board rules should allow that the impact of the water
    22 quality assessment contemplated in the Agency rules. If you look
    23 at the Agency rules, there seems to be this contemplation of
    24 determining the significance in lowering. And as other people
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    1 have indicated, Toby, the IEPA, the Agency, has indicated that
    2 that is something that they look at, as a first cut in reviewing
    3 a request for an increase. But have this occur, this
    4 determination of whether the lowering of water quality is
    5 significant, have this occur prior to going into the final two
    6 provisions of an antidegradation demonstration.
    7 I think this would be much more effective and efficient
    8 management of the State's resources as well as making sure that
    9 when there are proposed loading increases that warrant the full
    10 antidegradation demonstration requirements, that those have the
    11 proper attention they need. Thank you very much.
    12 HEARING OFFICER TIPSORD: Thank you. Are there any
    13 questions?
    14 Yes, Mr. Ettinger?
    15 MR. ETTINGER: Yes, I have a couple.
    16 HEARING OFFICER TIPSORD: Excuse me. Could you speak up?
    17 They are having trouble hearing you in the back of the room. Or
    18 if you want, there is a microphone right here.
    19 MR. ETTINGER: Well, they may be better off not hearing me,
    20 but I will speak up anyway.
    21 (Laughter.)
    22 MR. ETTINGER: I have a witness here who says he is better
    23 off not hearing me.
    24 (Laughter.)
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    1 MR. ETTINGER: The first question was with regard to the
    2 first -- the first fault you find in the proposal, that has to do
    3 with this any increase problem and that is in, I guess,
    4 302.105(c)(2); is that correct?
    5 MS. GARIBAY: Uh-huh.
    6 MR. ETTINGER: Okay. Now, I just want to be clear on what
    7 your problem is here, because I think that there may not be a
    8 problem. If I have an NPDES permit now which allows me to
    9 discharge four million gallons per day, and I want a new permit
    10 that would allow me to discharge 4.5 million gallons a day, you
    11 would admit that that would require an antidegradation analysis
    12 independent of one of these other exceptions that you are
    13 proposing?
    14 MS. GARIBAY: Okay. You have an NPDES permit that limits
    15 your discharge to four million gallons per day?
    16 MR. ETTINGER: Yes. You now have a permit at four million
    17 gallons per day. You want to discharge 4.5 million gallons per
    18 day. Assuming that that didn't fall within one of the other
    19 exceptions that you are proposing, you would agree that that
    20 would need an antidegradation analysis?
    21 MS. GARIBAY: What we have seen that worked well in other
    22 states is to have the trigger being that if you are going from
    23 four to 4.5 million gallons per day, that that is going to
    24 require you to need to modify your existing permit limits and
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    1 conditions.
    2 MR. ETTINGER: Okay. So as long as it is a modification
    3 contemplated for the permit --
    4 MS. GARIBAY: Right.
    5 MR. ETTINGER: -- then that would meet your first objection
    6 here?
    7 MS. GARIBAY: Right.
    8 MR. ETTINGER: Okay. My other questions were with regard
    9 to your ten parts per billion of lead to six parts per billion of
    10 lead examples that resulted in various obstacles. I was
    11 wondering what state that occurred in.
    12 MS. GARIBAY: Indiana.
    13 MR. ETTINGER: And then as to the significance issue with
    14 the delayed project, what state was that in?
    15 MS. GARIBAY: Indiana.
    16 MR. ETTINGER: Okay. I have no other questions.
    17 HEARING OFFICER TIPSORD: Okay. Anyone else?
    18 MS. TONSOR: I just want to clarify the examples that you
    19 had attached to your testimony of regulations from other states.
    20 One was I believe from Wisconsin.
    21 MS. GARIBAY: Right.
    22 MS. TONSOR: And the other was Indiana, the Great Lakes?
    23 MS. GARIBAY: Right.
    24 MS. TONSOR: Those were the examples of the implementation
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    1 processes for those states?
    2 MS. GARIBAY: Right.
    3 MS. TONSOR: And you did not mean to offer those as
    4 examples of what we would call the water quality standard in
    5 those states, did you? I am using the word water quality
    6 standard to mean the actual non-antidegradation prohibitions or
    7 statement in the regulatory --
    8 MS. GARIBAY: Well --
    9 MS. FRANZETTI: I am not sure I understand in terms of not
    10 part of the standard meaning part of --
    11 MS. TONSOR: What would be equivalent to our Board
    12 rulemaking, the water quality standard.
    13 MS. FRANZETTI: Okay. I am not sure you were even
    14 commenting on that.
    15 MS. GARIBAY: No. I mean, where I saw the revision
    16 occurring is within the Board language where it says activities
    17 not subject to antidegradation review. I mean, as far as I
    18 understand, that is part of the Board language.
    19 MS. TONSOR: Here?
    20 MS. GARIBAY: Right. There is activities not subject to
    21 antidegradation review and this would be added to that, i.e., one
    22 of the activities not subject to the antidegradation review would
    23 be a request for an increase that triggers the need for a new
    24 permit limit or a permit modification that was less than de
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    1 minimis or something like that. I am not a lawyer. I don't know
    2 how you word that. That is where I would see it fitting in.
    3 MS. TONSOR: Okay. Then the examples that you provided
    4 were examples of the workings of the permitting process in --
    5 MS. GARIBAY: Right. Because one of the concerns that I
    6 had understood in the Agency testimony is that they didn't want
    7 the de minimis, and I think it was referred to by others, that
    8 you don't want it have a de minimis process that is more
    9 burdensome than the antideg review process. I mean, that would
    10 make no sense at all. In providing those examples states that
    11 basically -- I mean, the information that is used by those states
    12 to generate a determination of whether it is de minimis or
    13 insignificant is the same data and the same assessment that is
    14 used for developing the water quality standards.
    15 MS. TONSOR: Okay.
    16 MS. GARIBAY: Thank you.
    17 HEARING OFFICER TIPSORD: Is there anything further from
    18 anyone else? Thank you very much.
    19 MS. FRANZETTI: I would like to provide you with a clean
    20 copy to mark as an exhibit.
    21 HEARING OFFICER TIPSORD: Thank you very much. This will
    22 be marked, then, as Exhibit Number 18.
    23 (Whereupon said document was duly marked for
    24 purposes of identification as Hearing Exhibit 18
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    1 and admitted into evidence as of this date.)
    2 HEARING OFFICER TIPSORD: Then we have the prefiled
    3 testimony of the Illinois Wastewater Agencies. We will have you
    4 sworn in.
    5 (Whereupon the witness was sworn by the Notary
    6 Public.)
    7 MR. CARGILL: As most of you know, my name is Greg Cargill.
    8 I am a civil engineer by education, and I don't know if it is
    9 important to note this, but I am the first person to sit up here
    10 without legal counsel in the adjacent chair.
    11 (Laughter.)
    12 MR. CARGILL: But with two engineering degrees and an MBA,
    13 I will just try to muddle my way through. It is sort of --
    14 hopefully, that sets the tone of my testimony, a lot simpler.
    15 First of all, I applaud the previous speakers and testimony
    16 givers, Mr. Moore, Ms. Hirner, and Ms. Garibay. They probably
    17 are much more eloquent than I am when it comes to public
    18 speaking. Yet, I think they did an excellent job of putting some
    19 of the issues in front of the Illinois Pollution Control Board.
    20 One of the things that I do want to emphasize -- actually
    21 two things, flexibility and reasonableness. We have offered
    22 written testimony and I will summarize our comments here with
    23 this testimony and leave an exhibit for you to read in its
    24 entirety. But, first of all, I think the final rule needs to be
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    1 extremely flexible.
    2 From a technical standpoint, I really feel bound to point
    3 out that an antideg review is a prediction. It is a prediction
    4 or a model that says with this added loading that there should
    5 not be any added degradation to the receiving stream, lake, body
    6 of water, whatever. We don't really know for sure. We would
    7 like to know. We would like to have a database that was so vast
    8 and so expansive that we could tell that using this previous
    9 example of adding 0.5 MGD flow from a wastewater treatment plant,
    10 it would or would not cause degradation to the receiving stream.
    11 But we really don't know.
    12 Unfortunately, with the real world constraints of sampling
    13 and preparation of this antidegradation submittal, is that we may
    14 never know. What we will know is that if the proposed expansion
    15 is not blocked, we will have real world data with the discharge
    16 and using the same example of being expanded from four MGD to 4.5
    17 MGD, and over a period of time we will have the ability to
    18 finally and truly assess the impact of that added discharge to
    19 the stream.
    20 Now, let me back up half a step. I am not saying to go
    21 into this blindly. The Illinois Association of Wastewater
    22 Agencies represent more than eight million people in the State of
    23 Illinois, and they treat the wastewater of those eight million
    24 plus people each and every day. We have to have some
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    1 constraints, and I think we already have a lot of them. We have,
    2 first of all, water quality based effluent limits. And the key
    3 there is if done properly, you are allowed to discharge a
    4 parameter that meets that water quality based effluent limit.
    5 Take whatever heavy metal or any other substance that falls into
    6 that category, and your new discharge, if you will, should be
    7 held responsible to meeting that water quality based effluent
    8 limit. That is what we are all about, is good water quality.
    9 We took a comment towards Mr. Frevert's testimony in one of
    10 the previous things about whether or not something is good or
    11 practically good or not good at all. But if you are in
    12 compliance with water quality based effluent limits and your
    13 stream is in compliance with stream quality, I think we have done
    14 a great job. We have not done a good job. We have done a great
    15 job. I think we need some recognition of that, because that is
    16 our first level goal, is that all of the waters of the State of
    17 Illinois meets the minimum requirements of water quality. But if
    18 we do that, I think we have done a great job. That is not to say
    19 that we couldn't go higher, but that is really an important step.
    20 Reasonableness. I think the last two speakers really
    21 addressed that. As much as we would like Mr. Frevert to be
    22 around for a long, long time some day he will not be here, but we
    23 are really talking about a program. We are talking about a
    24 process, and we need -- from the POTW point of view, we need for

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    1 it to be reasonable. Not only can not the formalization or the
    2 preparation of an antideg process be so expensive that the POTW
    3 community can't afford it, I think we have to look at the other
    4 side of the coin at the same time.
    5 There was a statement made, once again, that there may be
    6 little or no financial impact. That is not true, ladies and
    7 gentlemen. The Illinois EPA, in my opinion, does a very good
    8 job. But if you ask them to review another 50, 100, or 200
    9 antideg packages, they will be further behind. We know what that
    10 means. We know that if you cannot process that antideg review,
    11 nothing happens. We really can't allow that to happen. We need
    12 to process them not only in the normal scheme of your course of
    13 business, but we may need to acknowledge in this process that
    14 they may need to hire more people. We are all for it. If we get
    15 a quick turnaround time from the Agency, it helps us.
    16 One of the points that was made, but I really want to
    17 emphasize this, when we do a planned expansion it is not, oh, we
    18 submit it, and it is the first time anybody has heard about it.
    19 No, the municipality, the village, the city, whoever, they
    20 probably had to go to the town council, they had to float bonds,
    21 they had to, you know, make public notice, if you will. They are
    22 not trying to hide anything. It is a process. It involves
    23 politics. It involves economics. It involves funding. It
    24 involves environmental adherence. So we are not trying to hide

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    1 anything.
    2 But we are also saying that once you get to the stage of,
    3 for example, take this half a million gallon per day expansion,
    4 and let's just say it was domestic wastewater. We know how to
    5 treat domestic wastewater. There are a couple extra wrinkles to
    6 treating industrial wastewater, but domestic wastewater is a
    7 pretty known proven fact in this country. We can meet not only
    8 water quality based effluent limits, but we can make technology
    9 based limits. We know we can do that. To go from four million
    10 to four and a half million MGD, we don't think there should be
    11 much of an antideg review. Back to my point on flexibility. Why
    12 should we spend a lot of money? And we are talking tens if not
    13 hundreds of thousands of dollars to prepare these packages, and
    14 then the lag time if it is a full-blown deg review on the
    15 obligation and responsibility of the Agency to review it and go
    16 through it. We have all had to go through 200 page documents.
    17 It does not happen overnight.
    18 In my example of my expansion of a domestic wastewater,
    19 engineering school taught me one thing. You are going to
    20 increase the loading on that receiving stream if the numerical
    21 effluent limits are the same. Take suspended solids, if you can
    22 put out ten parts per million, and you go from four to four and a
    23 half and you still have ten parts per million effluent limit, in
    24 theory you have expanded the loading on that stream. We can't

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    1 change the math. But it does not necessarily require, you know,
    2 much of an antideg review.
    3 Back to my point about flexibility. The Agency must retain
    4 that flexibility to be able to say, gee, this is pretty
    5 straightforward, boom, boom, it is done. On our side of the same
    6 topic is, we didn't have to invest $100,000.00 to convince the
    7 Agency that is it was not that critical. Once again, please
    8 remember this, the hundreds of thousands of dollars spent on the
    9 preparation of an antideg package did not improve water quality.
    10 In deference to my consulting friends, it might have
    11 improved their bottom line, but that is not really my goal here
    12 today. They can improve their own bottom line. But we have to
    13 look at that. What are we trying to do here? We are trying to
    14 pass a rule that protects water quality. I think we can get
    15 there with somewhat of a more simplified approach and a more
    16 simplified final rule.
    17 I guess my final point is about de minimis. I think we
    18 have to look at that in the same concept. In de minimis we are
    19 not saying that they get a free pass. No. They have to meet
    20 good, well thought out, and many, many times water quality based
    21 effluent limits. But what goal is there to be gained if you take
    22 a large stream, and if you take a half million gallons and you
    23 discharge it into the Chicago Sanitary and Ship Canal, I want to

    24 meet the biologist, and I know a very good one, that can prove
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    1 that if you meet effluent limits that you are going to change
    2 that receiving stream. Are you going to spend all your money
    3 sampling and then trying to analyze the results? You really get
    4 to a point of diminishing returns.
    5 I believe that's all I have to say. Thank you.
    6 HEARING OFFICER TIPSORD: All right. Thank you very much.
    7 Are there any questions? Yes, Mr. Flemal.
    8 BOARD MEMBER FLEMAL: Thank you, Mr. Cargill. I appreciate
    9 your plea for flexibility in the rule. Could you provide us with
    10 your ideas of specifically how the rule, as proposed to us by the
    11 Agency, might be modified to include that flexibility that you
    12 desire?
    13 MR. CARGILL: We can provide some follow-up information. I
    14 think it gets back down to where we started, you know, not only
    15 in the work group but in the process in the Agency's ability to
    16 retain their ability to review each case on a case by case basis.
    17 You know, if you set a lot of tiers on what is necessary, and
    18 they are forced to do these things, whether it be a full-blown or
    19 a three-quarters or a half or a quarter, we may defeat the
    20 purpose. But, once again, IAWA would be willing to, you know,
    21 provide some suggestions, if you will.
    22 BOARD MEMBER FLEMAL: Do you believe that the rule as
    23 proposed to us by the Agency does require some modifications to

    24 ensure that flexibility? That's the first question.
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    1 MR. CARGILL: Well, first of all, we think that without any
    2 reference to de minimis is that actually it takes away some of
    3 the flexibility, not of the Agency but of the system. In other
    4 words, is it a possibility to say that this is so small that it
    5 could not possibly have an impact on the receiving stream. You
    6 know, if the Agency was able to make that comment, we may not
    7 have to write it into the rule. But the IAWA believes that there
    8 should be some de minimis. Because I have to look at both sides.
    9 If there is no such section, then someone could say, well, gee,
    10 we are going to force the Agency to always give some kind of
    11 minimal or cursory review of each antideg situation. And if the
    12 final rule does not protect the Agency, then they are forced to,
    13 you know. If it is not specifically allowed or conversely, if
    14 something says you must do something, somebody in this world in
    15 this decade, as opposed to 30 years ago, is definitely going to
    16 force their hand, and call it what you want. They are going to
    17 sue them or whatever. But once somebody sues the Agency, they
    18 don't have a choice anymore. We have seen this in the last ten
    19 years.
    20 As an engineer, once again, I don't think we make progress
    21 in the courts other than we get finally a resolution of that
    22 thing. But it takes us literally, you know, half a dozen years,

    23 ten years, whatever. I am saying that we have the opportunity
    24 here to write a better rule that leaves them the flexibility to
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    1 say, okay, this thing really does not require much, if any,
    2 review whatsoever on the topic of antideg and you move on. But
    3 the IAWA would be willing to submit some comments, if you will.
    4 BOARD MEMBER FLEMAL: That would be useful for us if you
    5 could do so.
    6 MR. CARGILL: Okay.
    7 BOARD MEMBER FLEMAL: As a second issue, I think you used
    8 the figures that an antideg study might entail costs as much as
    9 tens to even hundreds of thousands dollars. Am I correct on
    10 that?
    11 MR. CARGILL: That is correct.
    12 BOARD MEMBER FLEMAL: Is this sort of actual experience
    13 numbers that you folks have encountered.
    14 MR. CARGILL: Yes, it is.
    15 BOARD MEMBER FLEMAL: What is it that produces that kind of
    16 range?
    17 MR. CARGILL: Two things. One is that you normally hire a
    18 consultant for professional work, and they need to be compensated
    19 at the professional level. But more importantly, if, indeed,
    20 there is any water quality studies that need to be done, you
    21 know, they are very expensive.
    22 BOARD MEMBER FLEMAL: Data collection.

    23 MR. CARGILL: Data collection, right.
    24 BOARD MEMBER FLEMAL: Okay. Thanks.
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    1 HEARING OFFICER TIPSORD: Okay. Anything further?
    2 Okay. Thank you very much, Mr. Cargill. We will mark your
    3 testimony as Exhibit Number 19.
    4 (Whereupon said document was duly marked for
    5 purposes of identification as Hearing Exhibit 19
    6 and admitted into evidence as of this date.)
    7 HEARING OFFICER TIPSORD: Thank you very much.
    8 MR. CARGILL: Thank you.
    9 HEARING OFFICER TIPSORD: I believe the Agency had some --
    10 wanted to do some clarifying questions?
    11 MS. TONSOR: Yes. I wanted to give Toby an opportunity to
    12 clarify what the Agency's position was on the de minimis
    13 exception. I have been told that in the back they can't hear me
    14 when I speak. So I am trying to make that adjustment.
    15 So I want Toby to clarify for the Board the process.
    16 First, how long or how many times was the de minimis process
    17 reviewed, if you will, during the work group sessions.
    18 MR. FREVERT: One time from start to finish, a continual
    19 discussion on that.
    20 MS. TONSOR: Were you able ever to come up with a
    21 determination of what would be de minimis which would work in

    22 each situation?
    23 MR. FREVERT: In my mind it is even more complicated than
    24 that. The issue of de minimis is a gray concept. How do you
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    1 define de minimis. I don't believe we can even reach a consensus
    2 on what the criteria is to define de minimis. For instance, the
    3 cost and alternative effect defining something significant. I
    4 would say one molecule of dioxin in the Mississippi River is
    5 significant if it is avoidable at no cost. That being said, that
    6 doesn't mean that I envision any kind of a review to meet this
    7 regulation as being particularly costly.
    8 I don't think -- for instance, some things you can go
    9 through and you know there may be an infinite number of
    10 alternatives, but you know through the social and the cost
    11 factors in terms of making this consistent with the State's
    12 overall goal for the population in the community, there is some
    13 rational way to look at what alternatives are close enough for in
    14 the ballpark and reasonable to warrant assessment and other
    15 alternatives that may be technically or theoretically available
    16 don't warrant inclusion in an evaluation. I think we are still
    17 amenable to any clarity we can provide on this issue to the
    18 extent that it can be provided. But my personal feeling is the
    19 more we talk about this thing, maybe the more it digresses rather
    20 than the more it narrows.
    21 MS. TONSOR: In reviewing -- you had an opportunity to

    22 review Ms. Garibay's testimony didn't, you?
    23 MR. FREVERT: That's correct.
    24 MS. TONSOR: One item that I wanted to clarify with you and
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    1 for the Board and the persons here is to review the -- some of
    2 the standards that are the water quality standards from the
    3 states that were mentioned in Ms. Garibay's testimony. And I am
    4 going to offer those as exhibits for the Board and they will
    5 basically speak for themselves. Additional copies are available.
    6 In looking at, let's say, the Wisconsin standard -- I think I
    7 have it in here.
    8 MR. FREVERT: The actual language in the Wisconsin standard
    9 is even less specific than our standards in terms of information
    10 on how to proceed after the statement of the basic policy. I
    11 believe there are some implementation guidance and procedures in
    12 the Wisconsin regulations on the permitting process. I don't
    13 think they are fundamentally that different than the way we do
    14 business. But they are not part of the standard themselves.
    15 They are part of the implementation program.
    16 BOARD MEMBER FLEMAL: May I jump in here. Are you
    17 referring to the attachment one to Ms. Garibay's testimony, the
    18 water quality antidegradation regulations from the Department of
    19 Natural Resources of Wisconsin?
    20 MR. FREVERT: I don't know whether I am or not, Ron.

    21 BOARD MEMBER FLEMAL: I was just wondering if you are,
    22 could you point us to the actual portion of that language that
    23 you characterize as being less specific?
    24 MS. TONSOR: Let me give you those copies.
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    1 MR. FREVERT: Okay. I think that's correct. I am talking
    2 about the Wisconsin administrative code chapter NR 102. The
    3 antidegradation standard, as I understand it, is NR 102.05(a).
    4 HEARING OFFICER TIPSORD: What you are specifically
    5 referring to, Mr. Frevert, is that what we were just handed that
    6 we are going to mark as an exhibit?
    7 Is that correct, Connie?
    8 MS. TONSOR: Yes.
    9 HEARING OFFICER TIPSORD: Okay. Then we will mark this
    10 as Exhibit Number 20, which is Wisconsin Administrative Code,
    11 Department of Natural Resources, Chapter NR 102.
    12 (Whereupon said document was duly marked for
    13 purposes of identification as Hearing Exhibit 20
    14 and admitted into evidence as of this date.)
    15 BOARD MEMBER FLEMAL: Before we leave that, again, just to
    16 keep me clear on this, Ms. Garibay gave us the Chapter NR 207,
    17 called water quality antidegradation, which is something
    18 different than that which we just received which is Chapter 102?
    19 MR. FREVERT: I believe that is the permitting procedures
    20 that they utilized to implement that standard.

    21 MS. TONSOR: If I might, to clarify any confusion that
    22 might arise that those are, in fact, the water quality standards,
    23 we offer for the Board's review the water quality standard which
    24 those procedures that Ms. Garibay talked about implement.
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    1 MEMBER OF THE AUDIENCE: I am sorry. We can't hear.
    2 MS. TONSOR: I am sorry. The point is just to clarify any
    3 confusion that might result. What we are talking about now is
    4 the water quality standard that -- Ms. Garibay indicated that she
    5 had provided the implementation procedures for the water quality
    6 standard.
    7 MR. FREVERT: Maybe to help the situation, it is possible
    8 that she was recommending that the Board incorporate some of the
    9 permitting procedures within the Board regulations. But in the
    10 case of the State of Wisconsin, they have an antidegradation
    11 standard on the books in one location, and they have a permitting
    12 procedure on the books in another location. I suppose if we were
    13 try to parallel that in Illinois, there would be two approaches.
    14 One is what we would recommend and we would identify and
    15 promulgate a permitting process whereby we would operate our
    16 permit program, if and when this regulation is adopted, to
    17 demonstrate adherence to that within our permitting programs. If
    18 the Board wanted to add some additional clarification on their
    19 own, I would presume that sort of thing, to maintain consistency

    20 with the Wisconsin approach would probably be housed in Part 9 of
    21 Subtitle C and not the water quality standards themselves. It is
    22 really an approach to permitting issuance rather than a statement
    23 of the policy of the standard.
    24 HEARING OFFICER TIPSORD: Any additional questions?
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    1 BOARD MEMBER FLEMAL: Without beating that one to death,
    2 just for the record's sake, then the entire antidegradation
    3 standard of the State of Wisconsin is what we see in Exhibit
    4 Number 20, chapter NR 102.05(1), just that first part, one; is
    5 that correct?
    6 MR. FREVERT: That's my understanding, yes.
    7 HEARING OFFICER TIPSORD: Okay. Go ahead.
    8 MR. FREVERT: I believe there is a similar pattern from
    9 other states. And I think that's what my attorney is trying to
    10 establish in her next question to me. Is that correct?
    11 MS. TONSOR: Essentially I wanted to ask whether you had
    12 also had an opportunity to look at the water quality standards in
    13 the other states that had been referenced in Ms. Garibay's
    14 testimony and then have your comments on those and we will admit
    15 those as an exhibit.
    16 HEARING OFFICER TIPSORD: Could we have those before?
    17 MS. TONSOR: Sure.
    18 MR. FREVERT: It is a similar approach in all states. The
    19 water quality standards are relatively crisp and straightforward

    20 and they promulgate the implementation procedures to demonstrate
    21 the mechanics of how one implements that in the NPDES program in
    22 some other document or some other section of their state program.
    23 HEARING OFFICER TIPSORD: Okay. I have Pennsylvania, West
    24 Virginia, and Indiana. Do you have additional copies of West
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    1 Virginia?
    2 MS. TONSOR: Sure.
    3 HEARING OFFICER TIPSORD: I need two more, please.
    4 MS. TONSOR: Okay.
    5 HEARING OFFICER TIPSORD: For the record, I have been
    6 handed Indiana Environmental Health and Safety Regulations, West
    7 Virginia Environmental Health and Safety Regulations and
    8 Pennsylvania Environmental Health and Safety Regulations.
    9 I will mark Indiana as Exhibit Number 21, West Virginia as
    10 Exhibit Number 22, and Pennsylvania as Exhibit Number 23.
    11 (Whereupon said documents were duly marked for
    12 purposes of identification as Hearing Exhibit 21,
    13 22, 23 and admitted into evidence as of this date.)
    14 MS. TONSOR: How would you characterize the Illinois
    15 proposal vis-a-vis the other state's proposals?
    16 MR. HARRINGTON: Excuse me. We can't hear you.
    17 MS. TONSOR: Excuse me. Toby, how would you characterize
    18 Illinois' proposal vis-a-vis the other state's proposals?

    19 MR. FREVERT: I think the approach we are following in the
    20 relative distinction between the standard itself and the process
    21 to go through and in conducting a permit review or a 401 review
    22 to determine adherence to that standard is essentially the same
    23 approach.
    24 One point of clarification is I don't think these are
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    1 proposals. I think the other three states have actually adopted
    2 these and are standing regulations in those states. Another
    3 point of clarification, maybe just to put everything in proper
    4 perspective, we are essentially on notice that the Illinois
    5 program is deficient in that we don't have a fully promulgated
    6 federally improved NPDES implementation procedure to deal with
    7 the antidegradation standard.
    8 The standard itself probably does not absolutely need to be
    9 changed or updated. Nevertheless, we have an obligation to
    10 review the standard and together with the implementation
    11 procedures make a submittal to the U.S. EPA for federal review
    12 and approval.
    13 As part of the work group, I believe, some of the early
    14 discussion were the adequacy of the standard and whether or not
    15 it was warranted for updating. The purpose of this proposal
    16 today is to honor, I think, the general consensus of people that
    17 the standard would benefit from updating, although it does not
    18 absolutely have to be updated. What has to happen is have an

    19 NPDES permitting program that is approvable to implement either
    20 the standard that we are proposing or the standard that exists.
    21 HEARING OFFICER TIPSORD: Okay. Go ahead, Dr. Flemal.
    22 BOARD MEMBER FLEMAL: I have some more questions on these.
    23 You note that the State of Illinois' antidegradation policy is
    24 under review. How about the four states that you given us?
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    1 Where do they stand on the same process.
    2 MR. FREVERT: The State of Indiana is under a notice of
    3 intent to sue by some environmental groups. They, apparently,
    4 have a developmental program underway. They are fairly actively
    5 working through the process. My understanding is that so long as
    6 that process moves forward and is not abandoned or stalled both
    7 the U.S. EPA and the environmental groups that have filed their
    8 notice of threat to sue are willing to allow the process to move
    9 forward. That is what my understanding is.
    10 BOARD MEMBER FLEMAL: So would you hold Indiana up, then,
    11 as any particular good example for us based on that
    12 characterization?
    13 MR. FREVERT: In general or with regard to antidegradation?
    14 BOARD MEMBER FLEMAL: Antidegradation.
    15 MR. FREVERT: I don't believe -- my communication with
    16 federal employees and my communication with some of the Indiana
    17 staff are that they are a long way from having solved the

    18 antidegradation issue in the State of Indiana.
    19 In the State of Wisconsin they have a standard and an
    20 implementation procedure that was approved early on, probably in
    21 excess of ten years ago. It probably would not be approvable
    22 under the current criteria the U.S. EPA is applying. It is the
    23 U.S. EPA's priority at this point to get implementation
    24 procedures and programs together for the states that don't have
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    1 them. Once they have accomplished that, they intend to go back
    2 and probably with training and the review process ask the states
    3 with older more historic programs to review and consider updating
    4 them. So at some point in the future Wisconsin may benefit from
    5 some brush-ups as well.
    6 A few of years ago I was involved in some national
    7 conferences and workshops where I had some exposure to the West
    8 Virginia people and their program, and I know they were actively
    9 working on some antideg issues there. I can't honestly tell you
    10 that I kept up to speed with where the status of their program is
    11 right now.
    12 Other than a little involvement with the State of
    13 Pennsylvania, regarding Great Lakes regulations, I am not that up
    14 to speed on the Pennsylvania programs.
    15 BOARD MEMBER FLEMAL: Are there any of these four that you
    16 look on as a model that might be able to give us some perspective
    17 on an appropriate way to go?

    18 MR. FREVERT: I think the language in the standards of all
    19 four states is pretty close to federally approvable if not
    20 federally approvable. I think the big focus is what is the
    21 administrative permit issuing process and how adequate and up to
    22 speed it is.
    23 BOARD MEMBER FLEMAL: So they do stand as example as the
    24 definition of the standard, and not necessarily the associated
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    1 implementation procedures.
    2 MR. FREVERT: That's correct. They would probably all be
    3 reasonable approvable language for a standard. The U.S. EPA will
    4 probably not review that standard in the isolation without access
    5 to their permitting procedures. They would have ten years ago,
    6 but not today.
    7 BOARD MEMBER FLEMAL: Somewhere way in the back corners of
    8 my mind I have a recollection that the State of Pennsylvania has
    9 been one particular battleground in the issue of antidegradation.
    10 Am I correct in that there has been a history of litigation
    11 focused on the Pennsylvania rule?
    12 MR. FREVERT: The water program in the State of
    13 Pennsylvania has had a history of some debates and arguments. I
    14 don't -- I can't recall Pennsylvania being held up as an example
    15 of how to do anything with the water --
    16 (Laughter.)

    17 MR. FREVERT: I am not trying to be --
    18 BOARD MEMBER FLEMAL: Have they been held up as a state not
    19 to model yourself after if you are trying to do an
    20 antidegradation rule?
    21 MR. FREVERT: I am sorry, but I just don't have the
    22 personal knowledge to answer that question.
    23 BOARD MEMBER FLEMAL: As I said, it is only a vague
    24 recollection on my part. Again, if there is anybody anywhere
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    1 along the line that could enlighten us on that --
    2 MR. ANDES: I could. I am a member of the --
    3 HEARING OFFICER TIPSORD: Could you identify yourself, for
    4 the record, please?
    5 MR. ANDES: I would be glad to. I am Fred Andes from
    6 Barnes & Thornburg. I am sorry to interrupt, but if you want me
    7 to help clarify a few things, I can.
    8 First, on Indiana, the notice of intent to sue that has
    9 been filed has nothing to do with the current Indiana
    10 antidegradation rules which, in fact, the EPA is fine with under
    11 the Great Lake Initiative. The notice of intent to sue has to do
    12 with a new law that has been passed by the Indiana legislature on
    13 antidegradation. And the contentions are that, in fact, the new
    14 law made some changes in standards that have to be approved by
    15 the EPA. It has nothing to do with the current antidegradation
    16 rules in Indiana, whatsoever, which will have to change under the

    17 new law. It is two separate issues.
    18 HEARING OFFICER TIPSORD: Excuse me.
    19 MR. ANDES: Yes.
    20 HEARING OFFICER TIPSORD: Could I have you sworn in?
    21 MR. ANDES: Absolutely.
    22 HEARING OFFICER TIPSORD: Thank you.
    23 (Whereupon the witness was sworn by the Notary
    24 Public.)
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    1 MR. ANDES: So as to Indiana, the notice of intent has
    2 nothing to do with the current antidegradation rules. A lot of
    3 the reason why Indiana is cited as an example here is because
    4 through the Great Lakes Initiative, Indiana had to put in
    5 antidegradation rules and a lot of these issues -- and Ms.
    6 Garibay and I were very involved in this -- a lot of these issues
    7 were debated and dealt with in the Indiana rulemaking, and are
    8 continuing to be discussed in Indiana. There are some good, some
    9 bad, but a lot of these debates have taken place there and that
    10 is why a lot of the examples tend to refer to what is going on in
    11 Indiana.
    12 In Wisconsin my understanding is that the EPA, in approving
    13 the Great Lakes program for Wisconsin, did not disapprove any
    14 element of their antidegradation rule. So I don't see -- I see
    15 nothing saying the EPA has any problem with the Wisconsin

    16 antidegradation rule.
    17 Your recollection is correct on Pennsylvania that there was
    18 litigation. The specific issue in Pennsylvania was they refused
    19 to fill a gap that the Illinois EPA is now proposing to fill.
    20 Pennsylvania refused to put in an ONRW classification in their
    21 rules. They pretty much said to the EPA, no, we don't feel like
    22 doing that and the EPA said, well, then, we will do it for you.
    23 It didn't have anything to do with the other tiers of the
    24 antidegradation, simply a very clear issue where they had to do
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    1 something under the federal rules and said that they were not
    2 going to do it.
    3 MR. FREVERT: You know, the only clarification I could add
    4 is that my comments regarding Wisconsin and Indiana really were
    5 not germane to the Great Lakes issue on the antidegradation regs
    6 in the Great Lakes. It was a broader state-wide program. In the
    7 case of Wisconsin a significant part of the state is not in the
    8 Great Lakes system. If this is an important issue to you, I will
    9 be happy to try to get you some specific statements from members
    10 of those two states or the U.S. EPA if you so choose. The EPA
    11 would like to help in the process, but the EPA is not going to
    12 want to go to one state to make news about another state.
    13 MR. ANDES: The only other clarification I would offer, in
    14 terms of the whole standard versus implementation procedures, is
    15 that Toby is correct that every state, every state that I know of

    16 has the same water antidegradation standard. It is in the
    17 federal reg and the EPA has told the states this is the standard
    18 you have to have. Each state that I can think of has, in
    19 essence, then said, all right, then we will have that in one part
    20 of our standard -- one part of our rules, the official Board
    21 approved rules. And then in another part our official Board
    22 approved rules we will have how we deal with that in specifics.
    23 Do we have exemptions? Do we have de minimis levels? How do we
    24 do demonstrations? All of those issues get dealt with in
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    1 official Board approved rules. So when I think the regulated
    2 community is talking in terms of the need for de minimis levels,
    3 exemptions, etcetera, we are looking at the other states and
    4 saying wherever they have it in their rules, it is in them
    5 officially and our feeling is that needs to happen here as well.
    6 Thank you.
    7 HEARING OFFICER TIPSORD: Go ahead.
    8 MR. ETTINGER: I am not a witness here and I am going to
    9 file a brief or whatever it is in a few weeks if that is what we
    10 work out that I think will set forth the history of some of the
    11 consideration here and the problems with the U.S. EPA. But I do
    12 want to point out a few things just because I am the person who
    13 signed the nasty 60 day notice letter in November of 1997.
    14 You know, what our thinking was, just to give us a little

    15 bit of background here, as Toby said in the first -- in the first
    16 day of testimony, for a long period Illinois just was not paying
    17 much attention to the antidegradation. In more recent years it
    18 has -- they have been paying more attention to it, particularly
    19 after we filed the 60 day notice letter. They seemed to pay a
    20 lot more attention to it. But the problem is that we are writing
    21 these permits and they are playing the game without the rules
    22 being established, and that is what we are trying to do here.
    23 And that is what is necessary because there are all of these
    24 permits under consideration now and they don't have either the
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    1 Board rule written up or the Agency rules considering how exactly
    2 to do this. And that's what we are trying to do here, and that
    3 is sort of the urgency of getting this through.
    4 HEARING OFFICER TIPSORD: Are there any other questions?
    5 Mr. Harrington?
    6 MR. HARRINGTON: I have two groups of questions, follow-up
    7 on some of this testimony and the earlier testimony and the
    8 prefiled questions, which if we are going to have another
    9 hearing, I would just as soon postpone, because although they
    10 were mailed to the Agency they, apparently, were not received.
    11 HEARING OFFICER TIPSORD: Again, I don't know what the
    12 Board is going to do tomorrow. Is it possible that if the Agency
    13 does not feel comfortable answering those questions today if we
    14 do not have another hearing could they answer them in writing as

    15 a part of their comments?
    16 MR. HARRINGTON: Yes. Why don't I go through both sets of
    17 questions in case there is a not a hearing because there may be
    18 some follow-up.
    19 HEARING OFFICER TIPSORD: Okay.
    20 MR. HARRINGTON: What standard will the Agency use in
    21 determining whether an increased pollutant or whether the
    22 activity benefits the community at large?
    23 HEARING OFFICER TIPSORD: This is question number one of
    24 the prefiled questions.
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    1 MR. HARRINGTON: Yes, part of question number one of the
    2 prefiled questions, referring to section 302.105(c)(2)(B)(iv).
    3 MR. FREVERT: I don't believe there will be a single
    4 standard. I believe there are a number of hopefully obvious
    5 social and community goals for the citizens of Illinois, such as
    6 economic prosperity, and clean healthy and environment, economic
    7 competitiveness with the rest of the world, things of that
    8 nature. So to say there is one yardstick, like a job or a dollar
    9 revenue or something like that, I don't believe it will be
    10 defined that simple.
    11 MR. HARRINGTON: So, in essence, there will not be a
    12 standard in the rules or the Agency rules for determining what is
    13 -- what activities benefit the community at large; is that

    14 correct?
    15 MR. FREVERT: A standard meaning a yardstick or a
    16 measurement?
    17 MR. HARRINGTON: Yes.
    18 MR. FREVERT: If you are saying that something is not going
    19 to benefit the community unless there are X numbers of jobs or X
    20 number of people you are correct, there is no intention of
    21 setting a standard of that nature.
    22 MR. HARRINGTON: If someone appeals the Agency denial of a
    23 permit on this basis, that they failed to demonstrate the
    24 activity would benefit the community at large, what standard is
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    1 the Board supposed to apply in determining whether the Agency's
    2 decision was correct or not? Or can the Board make its own
    3 decision on whatever basis it wants?
    4 MR. FREVERT: I believe the intent and even in the
    5 specifics of our implementation procedures indicate the need to
    6 identify social or economic benefits expected to arise so that it
    7 will be a decision or a criteria or a measurement available. I
    8 can't give you a yardstick of what that will be in each instance.
    9 There will be a statement of what the benefit is.
    10 MR. HARRINGTON: If the statement of the benefit is this
    11 will keep X, Y, Z factory running, employing ten people, but we
    12 find that that benefit is insufficient for the community at large
    13 and, therefore, deny the permit, what is the Board supposed to do

    14 on an appeal?
    15 MR. FREVERT: In an example like that, there are all sorts
    16 of specifics you could think of in the example, but sort of a
    17 blatant and cold-hearted denial like that, I would hope that the
    18 Board would over turn us.
    19 (Laughter.)
    20 MR. HARRINGTON: Well, they may. But what basis would they
    21 have for overturning it?
    22 MR. FREVERT: They can interpret that standard, the intent
    23 of the standard, and whether or not the process adhered to that.
    24 I can tell you right now that many, many states and the U.S. EPA
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    1 have specifically struggled with the need and the desire to come
    2 up with a yardstick to address that. And my latest discussion
    3 with the headquarters standard people were if, indeed, they did
    4 anything in terms of studying and developing supplemental future
    5 guidance for the antidegradation policies, it would be focused on
    6 producing some additional guidance that would help the states put
    7 in perspective how to deal with the social and economic terms in
    8 the standards, and to date they have not produced much.
    9 MR. HARRINGTON: Would you see a problem if the Board rules
    10 included a list of things that they could consider such as
    11 creation of new jobs, preserving of existing jobs, adding to the
    12 tax rolls?

    13 MR. FREVERT: Solving other environmental problems and
    14 solving public health problems. I don't think that would be a
    15 problem at all as long as it was not perceived as an exclusive
    16 list, because I am sure there are social and community benefits
    17 that you won't think of when you are putting the list together.
    18 I might, just to help everybody else, when Bob Shippen from
    19 headquarters came out to discuss these things with us, their
    20 indication of perhaps the biggest and the most significant aspect
    21 of the social and economic issue was making sure that those
    22 benefits were identified and there was opportunity for public
    23 participation and public understanding of what those benefits
    24 were. Not so much as it is a hard yes or no criteria, but an
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    1 open public process. Currently that is what they are looking for
    2 and until and unless they find the magic target and produce some
    3 supplemental guidance, it boils down to formula. That is all
    4 they are going to be looking for.
    5 MR. HARRINGTON: So the feds would accept the process if it
    6 is open and public, and you think putting in the examples of
    7 types of benefits to be considered into the rule itself, as long
    8 as it was not exclusive, would be acceptable?
    9 MR. FREVERT: Yes, I think so. I think it may add more
    10 wording and language, but if it is deemed that that helps clarify
    11 the intent and the understanding of the types of things that are
    12 meant by those terms, you would certainly have no opposition to

    13 it.
    14 MR. HARRINGTON: Will community opposition to an activity
    15 unrelated to impacts on water quality be considered in
    16 determining whether that activity benefits the community at
    17 large?
    18 MR. FREVERT: I guess that I didn't comprehend your
    19 question.
    20 MR. HARRINGTON: Well, let me give you an example, one that
    21 has caused a lot of consternation in the Chicago area that had no
    22 water quality impact, the Robins Waste Energy project. There was
    23 a great deal of public opposition in some communities to that
    24 project and there was community support in other communities.
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    1 Now, if you took that project and it came under antidegradation
    2 review, would the Agency be considering that community opposition
    3 or support as part of determining whether it benefited the
    4 community at large?
    5 MR. FREVERT: It doesn't help any time the Agency takes
    6 action or something of that nature if we fail to consider any
    7 public comments from either side. If somebody filed a comment
    8 suggesting that there was a particular negative or positive to
    9 it, that has to be considered and factored into our decision. I
    10 think the critical thing to making this program work is for us to
    11 anticipate and identify those issues as best we can so that the

    12 best information is out there whenever a decision we make goes to
    13 public notice so that we can solicit proper and adequate input to
    14 finish up the process.
    15 MR. HARRINGTON: Well, in determining public benefit will
    16 you take into account other environmental impacts such as air or
    17 land.
    18 MR. FREVERT: If the new discharge is necessary to solve a
    19 public health problem like failing septic tanks, I would view
    20 that as a social and community benefit. If some increment of
    21 additional loading had to go to a stream for a larger improvement
    22 in overall air quality or in other environmental media, I would
    23 certainly view that as a legitimate benefit, perhaps even more
    24 than a legitimate benefit, and one of the types of benefits
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    1 envisioned by the rule.
    2 MR. HARRINGTON: What if there was opposition because of
    3 its impact on the air, but it met all the air standards, new
    4 source review, air toxics, anything else that came about, but
    5 there was still opposition because people didn't like its air
    6 impact? Would that be something to be considered in a water
    7 nondegradation review?
    8 MR. FREVERT: Certainly it would be something to be
    9 considered. The level of weight it was given and to what extent
    10 it did or did not affect a decision, I cannot comment on this
    11 theoretical type of issues. But, you know, the world is evolving

    12 and changing and we are more focused on multimedia issues than we
    13 ever have been before. Personally, I think there is better
    14 coordination and communication across the media now. So things
    15 are moving that way, Jim.
    16 MR. HARRINGTON: This is one you may wish to answer -- this
    17 is from the prefiled questions. Question two, based on the first
    18 hearing, would you agree to a provision that said that included
    19 among the activities not subject to an antidegradation
    20 demonstration language, which included new or increased
    21 discharges of noncontact cooling water return to the same body of
    22 water from which it was taken, provided that the discharge
    23 complies with applicable Illinois thermal limits and further
    24 provided that the additives contained in such cooling water are
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    1 or have been approved the IEPA in the NPDES permit?
    2 MR. FREVERT: I think what you are saying is that at one
    3 time in history a cooling water source received authorization
    4 through the NPDES process to use cooling water additives for
    5 whatever purpose and those additives would need to be acceptable
    6 under the antidegradation standard, and would I subject a request
    7 for an expansion of those additives to also be subject to an
    8 antidegradation determination?
    9 MR. HARRINGTON: Expansion of the volume of the cooling
    10 water discharge, which would probably contain with it a

    11 proportionate increase in the additives.
    12 MR. FREVERT: I would think in most instances, all of the
    13 other details not being known, that I would yield the same result
    14 on that request that I did on the initial request and find that
    15 that additive, that additional additive was acceptable and
    16 consistent with the intent of antidegradation. But I would call
    17 that a conscious decision if it is compliant with the standard
    18 rather than exempt from demonstration.
    19 MR. HARRINGTON: You would not --
    20 MR. FREVERT: I would anticipate that me making that
    21 decision would not require more than ten minutes. I am not going
    22 to take it through a full-blown review.
    23 MR. HARRINGTON: One other from the prefiled questions.
    24 Well, actually, two others. Would you be willing to include in
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    1 the list of activities on that subject to an antidegradation
    2 demonstration new or increased discharges to a publicly owned
    3 treatment works subject to a local pretreatment program?
    4 MR. FREVERT: You are talking about a circumstance where
    5 there is a new industrial discharge to an existing collection
    6 system that has an approved pretreatment program and nothing in
    7 that proposal warrants a change in the loading at the POTW's
    8 outfall. In other words, it does not require any additional
    9 modification of that NPDES permit. And my view is that
    10 additional loading is deemed acceptable and compliant with the

    11 standard at the time the permit was issued. We have already done
    12 that review and made that determination. The fact that the
    13 actual loading comes six months or a year or five years later is
    14 immaterial. That loading was authorized and deemed in our
    15 opinion to be compatible with the antidegradation standard and
    16 not exempt from it.
    17 MR. HARRINGTON: So assuming that there was agreement on
    18 the language, you would not mind the rule specifying that just
    19 for clarity, would you?
    20 MR. FREVERT: I would prefer a system where it was clear
    21 that if the loading is already anticipated and authorized by the
    22 permit, they have gone through that demonstration, so that there
    23 is no need and no intent and no likelihood and there is no
    24 requirement to make that determination the second time.
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    1 MR. HARRINGTON: All right.
    2 MR. FREVERT: No action is required on our part unless you
    3 need a construction permit. You don't even need to tell the
    4 Agency that that new source is in town.
    5 MR. HARRINGTON: If there is a new industrial discharge to
    6 a POTW, which does require a nondegradation -- a new NPDES permit
    7 or a modified permit and, therefore, an antidegradation review,
    8 does that review extend to determining whether the new industrial
    9 activity has a beneficial affect on the community at the large or

    10 whether there are alternatives or do you merely look at the POTW?
    11 MR. FREVERT: I believe the correct answer to that is if we
    12 have established the permit and we found that the permit
    13 acceptable and we found the pretreatment process and the process
    14 for local permitting and local allowance of annexation of the new
    15 source is acceptable, there is no action for us to take.
    16 MR. HARRINGTON: If the permit had to be modified to
    17 accommodate the new industry, you would have to take action on
    18 the modification, right?
    19 MR. FREVERT: Yes. If you are saying we have to modify a
    20 permit to allow that to happen, we have to modify a permit to
    21 allow that to happen.
    22 MR. HARRINGTON: And then you would do a nondegradation
    23 review?
    24 MR. FREVERT: It depends on what the purpose for the
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    1 modification is. If it is a load increase that you discharge
    2 outfall, quite frankly, it does not matter whether the load
    3 increase is attributable to new industry or new subdivision or
    4 something else.
    5 MR. HARRINGTON: The question is do you then go back behind
    6 the POTW to look at the source of that increase when you consider
    7 alternatives or benefit to the community? Do you look at whether
    8 the new subdivision is desirable or not or the new industry is
    9 desirable or whether there are alternatives for the discharge or

    10 alternatives to these being built?
    11 MR. FREVERT: As a routine matter, those issues are dealt
    12 with in facility planning and pretreatment ordinances and things
    13 of that nature. Once the programs to address those things are in
    14 place, we are not going to revisit them. So I think the answer
    15 to your question is, no, we would not feel that antidegradation
    16 applied to that example. But there -- I mean, we could sit
    17 around and concoct a scenario where maybe there is something
    18 peculiar where you would do it one out of a million times. So I
    19 --
    20 MR. HARRINGTON: So we -- excuse me. Go ahead.
    21 MR. FREVERT: I think the way you have to set up your
    22 theoretical, the answer is we are going to rely on those other
    23 programs, the pretreatment programs and facility planning
    24 programs, those things that, indeed, look at the alternatives and
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    1 technologies and the cost effectiveness and things of that nature
    2 and also the desire to serve community growth and all the social
    3 benefits that come along with the municipal wastewater collection
    4 and treatment. And we don't have any intention to use
    5 antidegradation to revisit all of the other program decisions.
    6 MR. HARRINGTON: Would you consider -- and you may not wish
    7 to answer this today, but maybe in your comments -- agreeing to a
    8 provision in the rule that made it clear that those activities

    9 are not going to be re-reviewed as part of nondegradation?
    10 MR. FREVERT: We would be happy to review and advise the
    11 Board of our reactions to any language that anybody proposes on
    12 modification of this proposal.
    13 MR. HARRINGTON: I think you will see I have proposed some
    14 language in my questions when you have had more of a chance to
    15 review them. I would ask you to take a look at our alternatives.
    16 I think there is one area that we have sort of missed in
    17 the testimony, and as we went on today it bothered me. I would
    18 like to touch on it. If somebody is going to, for example, build
    19 a new factory and have a wastewater discharge, a steel mill or a
    20 chemical plant, and they have to do -- and they are going to have
    21 a discharge. They are going to come in and apply for a new
    22 permit and it is clearly subject to nondegradation review. How
    23 long do you think it would take them to put together the
    24 demonstration you would want? Do you have any idea how much that
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    1 demonstration would cost, and how long would it take you to
    2 review it?
    3 MR. FREVERT: I will do the best I can on that one,
    4 carrying on with the theme that antidegradation is a standard
    5 that requires some decision making in the permitting process and
    6 that it varies from source to source and areas of the state to
    7 other areas of the state and different circumstances. There is
    8 no single answer. But I think what you are getting at is what we

    9 would view as perhaps on the high end of complexity and
    10 controversy.
    11 If the ultimate case example that this rule was intending
    12 to do deal with came before you, how much time and effort would
    13 it take to address that. And I am going to assume in answering
    14 that that there may indeed be some chemical and biological data
    15 collection and perhaps other types of information on the
    16 environmental conditions and proposed environmental
    17 ramifications. There would need to be some consideration of if
    18 we are going to build this factory and produce this product, show
    19 me that you have looked at the various technologies to do that
    20 and made the right selection of what technology will do that. I
    21 assume that is being done anyway and we are not doing that only
    22 for a permit.
    23 If an individual came in and opened that dialogue and said
    24 we are proposing to build facility "A" and we want to know what
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    1 the environmental requirements are, and here is the copper
    2 standard and here is another standard. When the antidegradation
    3 came into that dialogue, and I would hope in most instances the
    4 data collection and analysis and the development of what I think
    5 we would need to address the standard the way it is intended, at
    6 both the state and federal levels, could stay on the time frame
    7 as the overall permitting.

    8 Needless to say, that is one more issue when you get to
    9 public participation. It is available to the public to weigh in
    10 on it. The public has ten issues they are commenting on and this
    11 becomes the eleventh and there is one more issue in and of
    12 itself. It may not take any longer than the normal permitting
    13 process. A new industry, a new factory in the State of Illinois,
    14 perhaps anywhere in America, as industry recognizes, you can't
    15 get your NPDES in less than a year anyway, even in a
    16 noncontroversy circumstance. So, yes, I can see a year.
    17 MR. HARRINGTON: A year for the Agency from --
    18 MR. FREVERT: A year for the entire process for those
    19 complex -- potentially controversial issues.
    20 MR. HARRINGTON: Would you envision ever seeing a four
    21 season aquatic study of a stream?
    22 MR. FREVERT: Even without antidegradation, if there is an
    23 issue involving an endangered species or something that has
    24 critical needs, critical life stages at critical times of the
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    1 year, yes. Routinely there are requirements to look at aquatic
    2 communities in different life stages and different seasonal and
    3 climatic patterns. We do that and address issues other than
    4 antidegradation. Sure, that is potentially some information that
    5 we need to make the right decision on the cases.
    6 MR. HARRINGTON: Or season chemical studies?
    7 MR. FREVERT: Yes, as a matter of fact with the -- the

    8 ammonia water quality standard, we are looking at seasonal
    9 impacts already, sure.
    10 MR. HARRINGTON: In fact, dissolved oxygen and other things
    11 all relate to that; is that correct?
    12 MR. FREVERT: Yes. Although I -- well, we would really
    13 have a bad time if we had DO problems in the winter. It is
    14 usually -- it is maybe seasonal, but only half the season.
    15 MR. HARRINGTON: What about computer modeling stream
    16 impacts? Would you envision that as part of nondegradation?
    17 MR. FREVERT: Well, again, probably the need to assess
    18 impact of predicted concentrations and things at certain
    19 locations, whether or not those assessments are so complicated
    20 that the model would have to be computerized or not, I don't
    21 know. I don't know. I think a lot of times we use computer
    22 models when we don't need to.
    23 MR. HARRINGTON: One last -- I hope one last question. Am
    24 I correct that you would not see antidegradation being applied to
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    1 man-made basins that are used for wastewater treatment?
    2 MR. ETTINGER: Are you including the Sanitary and Ship
    3 Canal?
    4 (Laughter.)
    5 MR. HARRINGTON: No, not the Sanitary and Ship Canal.
    6 MR. FREVERT: Are you talking about wastewater lagoons.

    7 MR. HARRINGTON: Yes, among others.
    8 MR. FREVERT: They are treatment devices. They are not
    9 waters of the State.
    10 MR. HARRINGTON: Okay. Thank you very much.
    11 MR. ETTINGER: I have a couple of follow-up questions
    12 following up on Mr. Harrington's questions.
    13 Is this concept of having to show that a new discharge
    14 serves some social or economic goals a new requirement that is
    15 coming in first with this proposal?
    16 MR. FREVERT: I believe that is an existing component of
    17 our existing standard.
    18 MR. ETTINGER: So if one of these extremist environmental
    19 groups were to appeal one of Mr. Harrington's permits now, would
    20 the Board be faced with potentially having to decide the meaning
    21 of as a result of necessary economic or social development
    22 currently?
    23 MR. FREVERT: Yes, I think we intentionally retained the
    24 standard on the books now in those terms. There is some
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    1 clarification and additional language regarding 401 activities
    2 but for the court standard, we use the exact words that are on
    3 the books today in that part of it.
    4 MR. ETTINGER: I would like to ask two more. Now, this is
    5 as to the additives, the treatment water problem again. Just to
    6 give a hypothetical. We like hypotheticals here. Let's say, for

    7 example, that a factory now has got noncontact cooling water with
    8 additives, say chlorine or bromine now and they are discharging
    9 10,000 gallons per day and that has been approved in the past,
    10 but in a new permit they want to discharge 500,000 gallons per
    11 day of water with the same concentration of bromine or chlorine
    12 in it. Would you then consider antidegradation in that instance?
    13 MR. FREVERT: In a general sense I believe I would consider
    14 antidegradation -- if all the circumstances were the same, the
    15 presumption is likely the outcome would be the same. But this
    16 additional heat load may come from different operating conditions
    17 such that the chemical additive may be chemically modified or
    18 something else happen to it. This is all theoretical.
    19 MR. ETTINGER: In my example the chemical loading would be
    20 increased 50 times, would it not, if you had the same
    21 concentration?
    22 MR. FREVERT: A 50-fold increase?
    23 MR. ETTINGER: Yes.
    24 MR. FREVERT: Well, that's a big increase.
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    1 MR. ETTINGER: You would have to look at the antideg for
    2 that increase of the chemical?
    3 MR. FREVERT: I believe my answer was the same even if it
    4 was less than 50-fold. I think there needs to be some conscious
    5 decision that that allowance still makes sense, even at the

    6 higher level. I am assuming in most real world instances it is
    7 not going to be a burden on the Agency or the discharger. But
    8 you can concoct an example with increases of some other factor
    9 that would make it otherwise.
    10 MR. ETTINGER: The last thing, this had to do with the
    11 relationship between a pretreater and the POTW, and an instance
    12 in which a change that somebody discharging to a POTW has made
    13 that necessitates the POTW to go for a new permit. That was
    14 another one of Mr. Harrington's examples. Let's imagine that as
    15 to a particular POTW that was seeing to modify its permit to
    16 increase loading, and that loading could be avoided if the POTW
    17 went back to the pretreater and asked them to change their
    18 discharge in some way or otherwise they had alternatives for
    19 having to increase the discharger from the POTW. Would that be
    20 potentially an issue under an antidegradation?
    21 MR. FREVERT: From a practical sense I could tell you that
    22 with that issue the driving force of that would be revealing the
    23 pretreatment regulations what those requirements are, and I
    24 believe some of the same concepts are contained within those
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    1 reviews. But I certainly would not have the desire to do an
    2 entire separate review only for antidegradation for that request
    3 when there are other review processes to entertain that.
    4 MR. ETTINGER: Does the IEPA oversee the pretreatment
    5 permits?

    6 MR. FREVERT: I don't believe we are delegated. The U.S.
    7 EPA still administers that program.
    8 MR. ETTINGER: Okay. Thanks.
    9 HEARING OFFICER TIPSORD: Is there anything further at this
    10 time?
    11 MS. FRANZETTI: I just have a couple. I would like to
    12 clarify. I am concerned, Toby, that we may be creating a bit of
    13 a misconception on the task force efforts on de minimis and just
    14 what those were, with regard to your testimony that we couldn't
    15 get a consensus. In the task force certainly the de minimis
    16 concept was discussed. Do you agree with that?
    17 MR. FREVERT: Sure.
    18 MS. FRANZETTI: We discussed the fact that an approach
    19 could be the use of a bright line type of approach of a
    20 percentage cutoff. Do you agree with that?
    21 MR. FREVERT: There was discussion on that.
    22 MS. FRANZETTI: We also discussed what some of the other
    23 relevant factors might be that you would look at like stream
    24 characteristics and the nature of the proposed increase in
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    1 loading. Would you agree with that?
    2 MR. FREVERT: Certainly.
    3 MS. FRANZETTI: Okay. And then at a certain point everyone
    4 was asked to submit their ideas and their proposed language in

    5 comments, and they did. And people submitted including Mr.
    6 Ettinger, Mr. Moore, myself, IERG, and sorry if I left anybody
    7 else out. But everyone submitted comments to you. And I believe
    8 it would be accurate to say that everyone included a de minimis
    9 exemption in those comments. Do you agree with that?
    10 MR. FREVERT: There are a number of people that did. I
    11 can't say everybody.
    12 MS. FRANZETTI: Okay. I will accept that, too. I don't
    13 know if everyone did. In those, some people proposed percentage
    14 bright line cut offs as part of the proposal, albeit the
    15 percentage numbers were different; isn't that correct?
    16 MR. FREVERT: I think that's correct.
    17 MS. FRANZETTI: Okay. Then did the Agency -- in response
    18 to those comments, didn't the agency say, and I believe your
    19 response was that you did not feel that you had identified one
    20 way that was not burdensome and not arbitrary; is that correct?
    21 MR. FREVERT: Probably.
    22 MS. FRANZETTI: Okay. But we never came back together
    23 again after that to try and negotiate or to try work to a
    24 consensus position on the de minimis exemption?
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    1 MR. FREVERT: There were some follow-up meetings with the
    2 individual members of the work group, yourself included. There
    3 were some -- I believe there were some additional comments filed
    4 after, say, the termination of the active working sessions. In

    5 fact, I think we still have open dialogue with some people and
    6 continue to discuss this issue even today. And sitting here
    7 today, I have not heard of an approach to this de minimis
    8 exception yet that I think is really workable and would not
    9 result in a more burdensome load both on the permit applicant and
    10 my Agency.
    11 MS. FRANZETTI: I understand that, Toby. I just wanted it
    12 clarified, what the process was.
    13 MR. FREVERT: Okay.
    14 MS. FRANZETTI: And that in my view we never came together
    15 after everyone taking their first shot to try to come to a
    16 consensus. So I am not sure if we could or couldn't have. I do
    17 understand that it is your view that you feel it is unworkable
    18 because it may be equally or more burdensome. I don't want to
    19 beat it to death. I just did think it was worthy of some
    20 clarification.
    21 MR. FREVERT: I want to reiterate and make sure that the
    22 Board understands that we did identify this as a significant
    23 issue and we tried to forewarn the Board that this would be a
    24 matter of some further discussion. We didn't want to undermine
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    1 peoples' ability to come forward with their recommendations. But
    2 after two years we felt the need to move on to the next stage and
    3 get a petition filed and try to resolve these things because we

    4 really do have a requirement under the Clean Water Act to do
    5 something and we haven't done it yet.
    6 MS. FRANZETTI: Okay. Thank you. I have no further
    7 questions.
    8 MR. ANDES: In response to Mr. Harrington, in terms of the
    9 social and economic test, you indicated that it was a list of
    10 factors in there, in terms of increasing employment and other
    11 types of benefits. I guess I would just point out and ask the
    12 Agency to review -- there is a list exactly like that in the
    13 Wisconsin rules. I would ask if the Agency would review that and
    14 see if that fits the bill.
    15 MR. FREVERT: I believe we identified within our own
    16 proposed permitting procedures things that we would consider
    17 example benefits as well. It is not an exhausting list, but we
    18 attempted to show some indication that there are certain types of
    19 things that ought to be recognized.
    20 MR. ANDES: I guess one question would be whether there
    21 would be some benefit to putting that into the Board's
    22 regulations to make it clear and get more approval that those are
    23 the factors that you would consider.
    24 MR. FREVERT: I thought I had already stated in answer to
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    1 Jim's questions that I was amenable to that as long as it is
    2 worded in a fashion that it isn't exclusive and there may be some
    3 benefit that we can't envision that would warrant an action.

    4 MR. ANDES : So would --
    5 MR. FREVERT: I mean, the clean up of a Super Fund site is
    6 a justification for perhaps there is some incremental loading
    7 somewhere else.
    8 MR. ANDES: In fact, correcting an environmental or a
    9 public health problem is one of the factors.
    10 MR. FREVERT: Yes.
    11 MR. ANDES: The other question relates to the question that
    12 Ms. Franzetti asked. As I recall, one of the things that we
    13 talked about at some point during the advisory process was a tier
    14 review program, and as you have said, for some projects it would
    15 get different levels of review than others.
    16 I guess one question is, and I would like your thoughts on
    17 this, is what some other states have done is that they have some
    18 types of projects that sort of get the full bore of both parts of
    19 the antideg analysis, look at alternatives and look at the social
    20 and economic benefit. And there are some projects which get the
    21 alternatives analysis to make sure that you are minimizing a
    22 discharge, but you don't do the social and economic analysis
    23 mainly because, in essence, you have already decided those types
    24 of projects already have some benefit and you would not go
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    1 through that.
    2 MR. FREVERT: That may be the extent of my social and

    3 economic analysis.
    4 MR. ANDES: Okay. But it might be --
    5 MR. FREVERT: You envision me doing more, perhaps, than I
    6 intend to do.
    7 MR. ANDES: No, I don't. The simple issue is whether that
    8 could be embodied more clearly in the regulations.
    9 MR. FREVERT: Hopefully our intent, our desire, and our
    10 understanding of what would make the program in Illinois both
    11 workable and federally approvable has been articulated as best I
    12 can articulate it. If people want to bring in language that does
    13 a better job than what my language did, that's fine. As long as
    14 you understand what my intent is. If you meet my intent the odds
    15 are I will say, yes, I like your language better than mine.
    16 HEARING OFFICER TIPSORD: All right. Anything further?
    17 MR. ETTINGER: If we are going to have this meeting, I just
    18 want to make sure that the lawyers know before they run away.
    19 HEARING OFFICER TIPSORD: Yes, I will address that in just
    20 a second.
    21 If there are no further questions for the Agency at this
    22 time, thank you very much. I appreciate it.
    23 We will go off the record for just a minute.
    24 (Discussion off the record.)
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    1 HEARING OFFICER TIPSORD: At this time I want to thank
    2 everyone for your patience. It has been a second long day of

    3 hearing. We have some wonderful information and some wonderful
    4 testimony and great dialogue going. I thank you all for your
    5 attention.
    6 Do any of the Board Members have anything that they would
    7 like to add at this time? Okay. Thank you very much, and we are
    8 adjourned.
    9 (Exhibits retained by
    10 Hearing Officer Tipsord.)
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    1 STATE OF ILLINOIS )
    ) SS

    2 COUNTY OF MONTGOMERY)
    3 C E R T I F I C A T E
    4
    5 I, DARLENE M. NIEMEYER, a Notary Public in and for the
    6 County of Montgomery, State of Illinois, DO HEREBY CERTIFY that
    7 the foregoing 163 pages comprise a true, complete and correct
    8 transcript of the proceedings held on the 6th of December A.D.,
    9 2000, at 600 South Second Street, Suite 403, Springfield,
    10 Illinois, In the matter of: Revisions to Antidegradation Rules:
    11 35 Ill. Adm. Code 302.105, 303.205, 303.206, and 106.990-106.995,
    12 in proceedings held before Marie Tipsord, Hearing Officer, and
    13 recorded in machine shorthand by me.
    14 IN WITNESS WHEREOF I have hereunto set my hand and affixed
    15 my Notarial Seal this 12th day of December A.D., 2000.
    16
    17
    18
    Notary Public and
    19 Certified Shorthand Reporter and
    Registered Professional Reporter
    20
    CSR License No. 084-003677
    21 My Commission Expires: 03-02-2003
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