1
          1           ILLINOIS POLLUTION CONTROL BOARD
          2  IN THE MATTER OF:            )
                                          )
          3  AMENDMENTS TO REQUIREMENTS   ) R97-29
             FOR LANDSCAPE WASTE COMPOST  ) (Rulemaking - Land)
          4  FACILITIES, 35 ILL. ADM.     )
             CODE 830.203(c) 831.107,     )
          5  AND 831.109(b)(3)            )
          6
          7            The following is the transcript of a
          8  hearing held in the above-entitled matter, taken
          9  stenographically by Caryl L. Hardy, CSR, a notary
         10  public within and for the County of Cook and State
         11  of Illinois, before Richard McGill, Hearing Officer,
         12  at 100 West Randolph Street, Room 9-040, Chicago,
         13  Illinois, on the 7th day of August 1998, A.D.,
         14  commencing at the hour of approximately 10:10 a.m.
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                        L.A. REPORTING  (312) 419-9292
                                                            2
          1       PRESENT:
          2                 HEARING TAKEN BEFORE:
                       ILLINOIS POLLUTION CONTROL BOARD
           3            100 West Randolph Street
                       Suite 11-500
          4            Chicago, Illinois  60601
                       (312) 814-6983
          5            BY: MR. RICHARD R. McGILL, JR.
          6
             ILLINOIS POLLUTION CONTROL BOARD MEMBERS PRESENT:
          7
             Ms. Kathleen Hennessey
          8  Ms. Marili McFawn
             Mr. Anand Rao
          9
         10  ILLINOIS ENVIRONMENTAL PROTECTION AGENCY MEMBERS
             PRESENT:
         11
             Mr. Edwin C. Bakowski, P.E.
         12  Ms. Judith S. Dyer
             Ms. Joyce Munie, P.E.
         13
         14
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                        L.A. REPORTING  (312) 419-9292
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          1                      I N D E X
          2                                                     Page
          3
             GREETING BY HEARING OFFICER. . . . . . . . . . . .   4
          4  GREETING BY MS. HENNESSEY. . . . . . . . . . . . .   4
             GREETING BY MS. McFAWN . . . . . . . . . . . . . .   4
          5  TESTIMONY BY SUSAN GARRETT . . . . . . . . . . . .  12
             TESTIMONY BY EDWIN BAKOWSKI, P.E.. . . . . . . . .  14
           6  TESTIMONY BY JOYCE MUNIE, P.E. . . . . . . . . . .  22
             QUESTION & ANSWER SESSION. . . . . . . . . . . . .  28
          7  TESTIMONY BY JOY HINZ. . . . . . . . . . . . . . .  43
             QUESTION & ANSWER SESSION. . . . . . . . . . . . .  46
          8  TESTIMONY BY CHARLIE PICK. . . . . . . . . . . . .  47
             QUESTION & ANSWER SESSION. . . . . . . . . . . . .  54
          9  TESTIMONY BY DR. RENUKA DESAI. . . . . . . . . . .  58
             TESTIMONY BY JEFFREY GEISS . . . . . . . . . . . .  59
         10  QUESTION & ANSWER SESSION. . . . . . . . . . . . .  61
             TESTIMONY BY SUSAN FRANZETTI . . . . . . . . . . .  65
         11  QUESTION & ANSWER SESSION. . . . . . . . . . . . .  67
             CLOSING COMMENTS BY HEARING OFFICER. . . . . . . .  69
         12
         13
         14
                              E X H I B I T S
         15                                            Marked for
                                                       Identification
         16
             Hearing Exhibit No. 46. . . . . . . . . . . . . .  19
         17  Hearing Exhibit No. 47. . . . . . . . . . . . . .  21
         18
         19
         20
         21
         22
         23
         24
                        L.A. REPORTING  (312) 419-9292
                                                            4
          1       MR. McGILL:  Let's go on the record.
                   Good morning.  My name is Richard McGill, and I
          2  have been appointed by the Illinois Pollution
             Control Board to serve as hearing officer in this
          3  rulemaking proceeding entitled In The Matter Of:
             Amendments to Requirements for Landscape Waste
          4  Compost Facilities, 35 Illinois Administrative Code
             830.203(c) 831.107, and 831.109(b)(3).  The docket
          5  number for this rulemaking is R97-29, and today is
             the third hearing.
          6       Also present today on behalf of the board is
             Kathleen Hennessey, to my left, the board member
          7  assigned to this rulemaking.
                  MS. HENNESSEY:  Good morning.
          8       MR. McGILL:  To her left, board member Marili
             McFawn.
          9       MS. McFAWN:  Good morning.
                  MR. McGILL:  And to my right, from the board's
         10  technical unit, Anand Rao.
                  By way of background, in May of 1997 -- excuse
         11  me.
                            (Brief pause.)
         12       MR. McGILL:  In May of 1997, the proponents,
             Dr. Renuka Desai and Susan Garrett, filed a proposal
         13  with the board to amend 35 Illinois Administrative
             Code 830.203(c).  Section 830.203(c) contains
         14  location standards for composting areas at certain
             landscape waste compost facilities.
         15       Generally, the proponents requested that the
              board amend that section to prohibit composting
         16  areas from being located within one-half mile of the
             property line of a hospital, school, athletic field,
         17  or public park and to require that existing
             composting areas located within that setback
         18  distance be relocated.
                  The proponents alleged that their proposed
         19  amendments are necessary because these composting
             areas release spores into the air that present risks
         20  to human health.
                  On June 17th, 1998, the board adopted proposed
         21  amendments for first notice.  The board declined to
             adopt the proponents' proposal.  Instead, the board
         22  proposed that the current one-eighth-mile setback
             applied to residences apply to health care
         23  facilities, primary and secondary schools and their
             associated recreational areas, and preschool and
         24  child care facilities and their associated
             recreational areas.
                        L.A. REPORTING  (312) 419-9292
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          1       As proposed, the new setback requirements would
             apply only to the compost facility if it is
          2  developed after January 1st, 1999, or if it's
             permitted composting area is expanded after
          3  January 1st, 1999.
                  The board also proposed corresponding changes
          4  to certain permit application requirements.
                  Please note that sign-up sheets for this
          5  proceeding, service and notice lists are located at
             the back of the room.  Those on the notice list will
          6  receive only board opinions and orders and hearing
             officer orders.  Those on the service list will
          7  receive these documents plus certain other filings.
                  Also at the back of the room are copies of the
          8  current notice and service lists.  These lists are
             updated periodically.  I have also placed at the
          9  back of the room copies of my hearing officer order
             dated June 30th, 1998.
         10       Besides witnesses for the proponents and the
             Illinois Environmental Protection Agency, if you
         11  wish to testify today, you must sign in on the
             appropriate sign-up sheet at the back of the room.
         12       After any testimony from the proponents and the
             Illinois Environmental Protection Agency, we will
         13  proceed with the testimony of persons who sign up in
             the order their names appear on the sign-up sheet.
         14       This hearing will be governed by the board's
             procedural rules for regulatory proceedings.  All
         15  information that is relevant and not repetitious or
             privileged will be admitted.  All witnesses will be
          16  sworn and subject to cross questioning.  If you do
             not wish to give testimony, you may file written
         17  public comments.
                  As for the order of today's proceeding, we will
         18  begin with anyone who would like to testify
             regarding the decision of the Department of Commerce
         19  and Community Affairs to not conduct an economic
             impact study for this rulemaking.  Then we will
         20  proceed with those who would like to provide
             testimony regarding the board's first notice version
         21  of the proposed rules.  Again, for that testimony,
             we will first allow the proponents and the Illinois
         22  Environmental Protection Agency an opportunity to
             present testimony.  After that, we will proceed with
         23  the testimony of persons who sign up in the order
             their names appear on the sign-up sheet.
         24       Anyone may ask a question of any witness.  I
             ask that during question periods, if you have a
                        L.A. REPORTING  (312) 419-9292
                                                            6
          1  question, please raise your hand and wait for me to
             acknowledge you.  When I acknowledge you, please
          2  state your name and any organization you are
             representing here today.
          3       Please speak one at a time.  If you are
              speaking over each other, the court reporter will
          4  not be able to get your statements down for the
             record.
          5       Also, please note that any questions asked by a
             board member or staff are intended to help build a
          6  complete record for the board's decision and not to
             express any preconceived notion or bias.
          7       Are there any questions about the procedure we
             will follow today?
          8       Seeing none, I note that the board has no
             additional hearing scheduled in this matter.
          9       Also, at the end of today's hearing, I will set
             a deadline for filing public comments.
         10       Would any of the board members present like to
             make any remarks at this time?
         11       MS. HENNESSEY:  I would just like to welcome
             everybody and also just note that although we are
         12  happy to receive written public comments following
             this hearing, we do give more weight to the
         13  testimony that's provided to the hearing than we do
             to public comments primarily because there is an
         14  opportunity for others to ask cross questions about
             the testimony.
         15       Thank you.
                  MR. McGILL:  Okay.  We will now proceed with
         16  the matter of the Department of Commerce and
             Community Affairs' decision to not conduct an
          17  economic impact study for this rulemaking.
                  As background for this portion of today's
         18  hearing, Public Act 90-489, which became effective
             January 1st, 1998, requires the board to request the
         19  Department of Commerce and Community Affairs, or
             DCCA, to conduct an economic impact study on certain
         20  proposed rules before adopting those rules.
                  Within 30 to 45 days of the board's request,
         21  DCCA may produce a study of the economic impact of
             the proposed rules.  The board must make the
         22  economic impact study or DCCA's explanation for not
             conducting the study available to the public at
         23  least 20 days before public hearing on the economic
             impact of the proposed rules.
         24       The board requested by letter dated January
             30th, 1998, that DCCA conduct an economic impact
                        L.A. REPORTING  (312) 419-9292
                                                            7
          1  study for this rulemaking.  The board's letter
             referenced a letter dated January 26th, 1998, from
          2  DCCA in which DCCA notified the board that DCCA
             would not be conducting economic impact studies on
          3  rules pending before the board during the remainder
             of fiscal year 1998.
          4       In its letter, DCCA explained that it lacks the
              technical expertise and the financial resources to
          5  conduct these studies.  Therefore, in its letter,
             the board asked that DCCA notify the board within
          6  ten days of receipt of the board's letter if DCCA
             intended to conduct an economic impact study for
          7  this rulemaking.
                  The board further stated that if it did not
          8  receive this notification, the board would rely on
             DCCA's January 26th, 1998, letter as the required
          9  explanation for not conducting the study.
                  The ten days for DCCA to notify the board have
         10  expired, and the board did not receive any
             notification from DCCA that it will conduct an
         11  economic impact study.  In fact, the board has
             received a letter from DCCA dated June 26th, 1998,
         12  stating that for the same reasons, DCCA would not be
             conducting economic impact studies on rules pending
         13  before the board during fiscal year 1999.
                  Is there anyone who would like to testify
         14  regarding DCCA's explanation for not conducting an
             economic impact study for this rulemaking?
         15       Seeing no response, we will move on to the next
             portion of this hearing.
         16       The purpose of this portion of the hearing is
             to receive testimony from all interested persons on
         17  the merits and economic impact of the first notice
              version of the proposed rules.  In addition, the
         18  board would like to receive testimony on several
             issues enumerated in my hearing officer order dated
         19  June 30th, 1998.  Copies of that hearing officer
             order are located in the back of the room.
         20  Testimony will also be received on other issues if
             relevant and not repetitive.
         21       At this point, I would like to ask, would the
             proponents like to present any testimony?
         22       MS. GARRETT:  I would like just to make a
             comment.
         23       MR. McGILL:  Why don't you step up here,
             please?
         24                 (Brief pause.)
                  MR. McGILL:  Why don't we have the court
                        L.A. REPORTING  (312) 419-9292
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          1  reporter swear you in first?
                            (The witness was duly sworn.)
          2       MS. GARRETT:  I want to thank the Illinois
             Pollution Control Board for holding public hearings
          3  and allowing citizens to provide input on the siting
             of commercial compost operations in the state of
          4  Illinois.  I'm proud to say that the impact and
             efforts of every day citizens can make a
          5  difference.  The process made available through the
             Illinois Pollution Control Board and the IEPA made
           6  it possible for citizens to take on the challenge of
             revising a regulation and turning it into a reality,
          7  hopefully, by assembling and stating the facts.
                  While the final proposal does not go as far as
          8  we asked, it is certainly a very significant step in
             controlling the siting of compost operations
          9  throughout the state.
                  We have had consistency in the siting with
         10  regard to residences, but the new regulation
             includes guidelines for primary and secondary
         11  schools, health care facilities, and preschool and
             child care facilities, as well as the surrounding
         12  recreational fields.
                  On behalf of thousands of citizens throughout
         13  the state, I thank those parties who gave us the
             opportunity to address this important issue.
         14       MR. McGILL:  Thank you.  If you could just hang
             on, do the proponents have any additional witnesses
         15  to present today?
                       MS. GARRETT:  No.  The people that
         16  testified are in agreement with the proposed change
             in the regulation.
         17       MR. McGILL:  Okay.  At this point, we will open
             it up for any questions that anyone might have.
         18       Again, as I mentioned earlier, if you have a
             question, please raise your hand and wait for me to
          19  acknowledge you.  When I acknowledge you, please
             state your name and any organization you are
         20  representing here today.
                  Does the agency have any questions?
         21       MS. DYER:  None at this time.
                  MR. McGILL:  Before the board proceeds with any
         22  questions it may have, does anyone else have any
             questions for this witness?
         23       At this point then, I thank you.
                  MS. HENNESSEY:  Thank you.
         24       MS. McFAWN:  Thank you for all of your work, as
             well as your comments today.
                        L.A. REPORTING  (312) 419-9292
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          1       MR. McGILL:  At this point, I would ask the
             agency if they would like to present any testimony.
          2       MS. DYER:  We do have some brief testimony in
             response to the --
          3       MR. McGILL:  If you would like, you can step up
             here.  It may be easier for us and the court reporter
          4  to hear you.
                  MS. DYER:  Good morning.  My name is Judy
          5  Dyer.  I'm here today on behalf of the Illinois
             Environmental Protection Agency.  With me on my left
          6  is Ed Bakowski.  He's the manager of our permit
             section for the Bureau of Land at the agency.  On my
          7  right is Joyce Munie.  She works under Ed Bakowski
              in the permit section.
          8       We have some brief testimony to present today
             in response to some of the questions that the board
          9  requested information on or responses on in the
             board order going to first notice.
         10       MR. McGILL:  Why don't we swear in the
             witnesses first?
         11                 (The witnesses were duly sworn.)
                  MR. BAKOWSKI:  My name is Ed Bakowski.  I
         12  manage the permit section in the division of land
             pollution control with the Bureau of Land with the
         13  IEPA.  My section has the responsibility for
             implementing and administering the landscape waste
         14  composting regulations in Illinois pursuant to
             Section 39 of the Illinois Environmental Protection
         15  Act.  I have served in this capacity for more than
             four years.  From 1987 to 1984, I was a solid waste
         16  unit manager in this section, and prior to that, I
             was in the mine pollution control program.
         17       In the June 17th, 1998, notice concerning this
             proposal, the board asked for testimony on several
         18  specific subjects.  As the regulating agency for
             these rules, the Illinois EPA wants to provide as
         19  much information to the board as possible.  I wish
             to provide testimony on the notice Items 1, 4, and
         20  5.  My unit manager in the solid waste unit, Joyce
              Munie, will be addressing Item 2.  Ms. Munie will
         21  also be raising some technical concerns we have on
             the proposed rules.
         22       Regarding Item 1, the technical feasibility and
             economical reasonableness of the proposed rule, as a
         23  general rule:  The agency does not have access to
             business and financial information of permittees.
         24  The decision of where a site will be made is made by
             the owner/operator prior to submitting the
                        L.A. REPORTING  (312) 419-9292
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          1  application to the agency.  Because of this, we do
             not feel we can comment on the economic
          2  reasonableness of complying with this proposal
             either for new or existing facilities.
          3       Concerning the technical feasibility, the
             Illinois EPA is confident that within the state of
          4  Illinois there is ample area to find parcels of land
             that can meet the proposed setbacks.  It is probable
          5  that facilities would find more suitable parcels in
             more remote areas, and therefore, transportation
          6  costs will be higher as they are farther away from
             populated areas where there are the more
          7  concentrated markets for both generators and users
             of the landscape waste and subsequent composts.
           8       If the rule is adopted as proposed, it is clear
             -- it needs to be clear in the rule when existence
          9  of a facility of concern is established.  I have
             kind of generally categorized these facilities of
         10  concern in one group.
                  It is necessary to know what date a facility of
         11  concern is established to invoke the setback.  In
             other rules, it could either be based on the date of
         12  the permit application or of the final decision, but
             we think that date is critical and how that date is
         13  established.
                  There is also the concern that if the setbacks
         14  are retroactively applied, the creation of a new
             facility of concern from which a setback -- a
         15  compost facility must be set back from -- excuse
             me.  There is also a concern that if setbacks are
         16  retroactively applied, does the creation of a new
             facility of concern from which a compost facility
         17  must be set back cause an existing compost facility
             or even a facility permitted after these new rules
         18  to be relocated?
                  Regarding Item 4, the Illinois EPA is not
         19  exactly sure without additional definitions of the
             types of facilities of concern that the new setback
         20  will apply from, but even with a general reading of
             the terms, it's clear that the agency has no or very
          21  minimal information about the proximity and type of
             facilities of concern that are near existing compost
         22  facilities.
                  In an effort to help the board, the agency has
         23  prepared and mailed a letter to entities that we
             believe have this type of information.  We have a
         24  list of where these facilities were -- these
             facilities -- these notices were mailed, and it was
                        L.A. REPORTING  (312) 419-9292
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          1  felt that counties and municipalities are the most
             involved in zoning, and the compost sites themselves
          2  may be aware of their neighbors.
                  I guess I would submit --
          3       MS. DYER:  We would like to submit as an
             exhibit a letter that was sent.
          4       MR. BAKOWSKI:  I have ten copies of the letter
             we sent and the attached notice and then three lists
          5  of copies of who we sent it to.  We basically sent
             it to the permitted compost facilities, the counties
          6  in Illinois, and the Illinois municipality.
                  MS. DYER:  These are three copies of the letter
          7  that was mailed and the attachments of the notice
             and proposed rules.
          8       MR. McGILL:  This is three copies of the same?
                  MS. DYER:  Right, and I can give you more.  We
           9  brought ten with us.
                  MR. McGILL:  Those are extras.
         10       MS. DYER:  That's three copies of the list.
                  MR. McGILL:  Mailing list?
         11       MS. DYER:  Mailing list.
                  MR. McGILL:  Okay.  I have been handed two
         12  documents.  The first is a letter from the Illinois
             Environmental Protection Agency dated July 30th,
         13  1998, regarding Proposed Amendments to Landscape
             Waste Compost Facilities request for comment.  And
         14  attached to that letter is a copy of my hearing
             officer order of June 30th, 1998, along with the
         15  board's first notice opinion and order of June 17th,
             1998.
         16       Is there any objection to entering the
             described documents as a hearing exhibit?
         17       Seeing none, I am marking these documents as
             Exhibit Number 46 and entering them as a hearing
         18  exhibit.
                            (Hearing Exhibit No. 46 marked for
         19                 identification, 8-7-98.)
                  MS. HENNESSEY:  Just a question.  Did you
         20  provide a copy of this letter to the proponents?
                  MS. DYER:  No.  I was going to offer that.
         21       MS. GARRETT:  Can I ask for clarification?
                  MR. McGILL:  Sure.  Just state your name again
         22  for the record.
                  MS. GARRETT:  Susan Garrett.
          23       I guess I'm just a little confused.  It appears
             as if the IEPA is asking for -- the retroactive
         24  aspect of the proposed regulation I thought was not
             supported by the Illinois Pollution Control Board,
                        L.A. REPORTING  (312) 419-9292
                                                            12
          1  but it seems as if, you know, the IEPA is concerned
             that that is part of the proposed change in the
          2  regulation.
                  MS. DYER:  Excuse any confusion, if I could
          3  just respond.  We are trying to respond to questions
             that the board posed in its order.
          4       MS. GARRETT:  Okay.
                  MS. DYER:  And maybe it will become clearer
          5  when Ms. Munie testifies as to what our position is
             and remains and why we are providing this
          6  information.
                  MS. GARRETT:  Okay.  All right.
          7       MR. McGILL:  Let me just ask one question to
             reiterate this for the record.  When you were
          8  referring to question numbers in your earlier
             testimony, you were referring to questions that were
          9  set forth in my hearing officer order of June 30th,
             1998; is that correct?
         10       MR. BAKOWSKI:  No.  I was referring to the
             questions in the June 17th, 1998, notice.
         11       MS. HENNESSEY:  And those are on Page 7 of the
              June 17th order?
         12       MR. BAKOWSKI:  I believe so.
                  MS. HENNESSEY:  Okay.
         13       MR. BAKOWSKI:  They are one through five
             there.
         14       MR. McGILL:  Thank you.
                  MS. HENNESSEY:  I just have a question.  Are
         15  you going to give these exhibit numbers for the
             record or what?
         16       MR. McGILL:  Yes.  This is Exhibit Number 46,
             the agency letter with the attachments.
         17       MS. HENNESSEY:  Okay.
                  MR. McGILL:  We left off at 45 last time.
         18       MS. HENNESSEY:  Okay.
                  MR. McGILL:  And the other document that the
         19  agency has handed me is a list of mailing
             addresses.  These are the persons to whom the agency
         20  sent the letter and attachments that are now Exhibit
             46.
         21       Is there any objection to entering this mailing
             list as a hearing exhibit?
         22       Seeing none, I'm marking this document as
             Exhibit Number 47 and entering it as a hearing
         23  exhibit.
                            (Hearing Exhibit No. 47 marked for
         24                 identification, 8-7-98.)
                  MR. McGILL:  Would the agency like to proceed
                        L.A. REPORTING  (312) 419-9292
                                                            13
          1  with its testimony?
                  MR. BAKOWSKI:  A little further in response to
          2  Ms. Garrett's question, we didn't send you a copy of
             our letter because all we were trying to do is
          3  solicit information for the board.  When the board
             proposed its notice, it asked specific questions,
          4  and the agency feels obligated to provide testimony
             as much as we can.  In this instance, we didn't feel
          5  we had the information, so we tried to find -- think
             about who had that information and tried to let them
          6  know that the board was seeking that type of
             information.  And we knew you would be here, so you
          7  would see the letter eventually.  But it was just an
             effort to try to -- try to get as much information
          8  to the board because we didn't feel we had that type
             of information.
          9       MS. GARRETT:  Okay.
                  MR. BAKOWSKI:  I think I'm finished.
         10       MR. McGILL:  Okay.
                  MS. HENNESSEY:  Thank you for your efforts to
         11  solicit comments.  We appreciate that.
                  MS. MUNIE:  Good morning.  My name is Joyce
         12  Munie.  I manage the solid waste unit of the permit
             section division of land pollution control at the
         13  Illinois EPA.
                  I am testifying today in response to the
         14  board's request for testimony on specific issues and
              other issues, if relevant and not repetitive, on
         15  Page 7 in the June 17th, 1998, first notice order in
             this matter.  I would like to address the second
         16  issue identified in the order:  If the setbacks
             proposed in this first notice order were applied to
         17  existing compost facilities, should they apply
             immediately or after some period of time expires?
         18       The Illinois EPA testified in the original
             hearings that these setbacks should not be added at
         19  all either prospectively or retroactively.  Since
             sufficient protection is in place with existing
         20  operational and location standards, the Illinois
             EPA's position has not changed.  But since the
         21  board, in its order, has indicated that retroactive
             applicability of the setbacks may be under
         22  consideration, the Illinois EPA feels compelled to
             address that possibility.
         23       If the board were to apply the setbacks to
             existing facilities, the Illinois EPA would
         24  recommend that the applicability be phased in with
             the compliance deadline for each existing facility
                        L.A. REPORTING  (312) 419-9292
                                                            14
          1  being the current permit expiration date for that
             facility.
          2       As I testified in the first hearing, the
             Illinois EPA does not believe that adding the
          3  proposed setback requirement to new facilities will
             have any impact on our administrative cost.  Any
          4  proposed facility would just need to be located
             outside any setbacks that are in place at the time
          5  of application, and review of setback demonstration
             would just be a small part of the overall review of
          6  the application.
                  However, if the additional setbacks are imposed
          7  retroactively, the Illinois EPA would expect the
             need to permit additional compost facilities to
          8  replace the existing facilities required to close.
             This would have a short-term impact when the rule is
          9  first adopted.
                  As I stated in the first hearing, if 35 new
         10  facilities were needed to replace facilities that
             needed to close, it was estimated that this would
         11  cost the Illinois EPA between 525,000 and $700,000
             within the first couple of years after the rules
         12  became effective.
                  If this requirement were phased in, the
         13  Illinois EPA could distribute these costs over a
             longer period of time.  This estimate was based on
         14  an assumption that 50 percent of the facilities
             would close.  If the information gathered by the
          15  board in these proceedings reveal that more or less
             of that percentage will close, this cost can be
         16  adjusted accordingly.
                  We also want to mention that under the current
         17  compliance schedule, in 35 Illinois Administrative
             Code 830.107, the facilities that are continuing to
         18  operate under permits issued pursuant to 39(m) of
             the act must demonstrate compliance with all of the
         19  provisions of Part 830 upon renewal.  We expect
             these additional requirements to cause some
         20  facilities to close anyway based on our experience
             with our facilities that have come to that
         21  deadline.
                  As stated by Edwin Bakowski, the remainder of
         22  the questions posed by the board need to be
             addressed by the industry and communities that will
         23  be impacted by the proposed rules.
                  We want to identify a few concerns about the
         24  regulations as proposed by the board.
                  First, no definitions have been added.  What
                        L.A. REPORTING  (312) 419-9292
                                                            15
          1  type of facilities are to be included in the scope
             of health care facilities?  There are many types of
          2  facilities that could arguably be included.  Is a
             nursing home a health care facility?  Does a
           3  doctor's office fit into this definition?  Is a
             psychiatrist's office included?  Is a mental health
          4  hospital included?
                  We assume that primary and secondary schools
          5  would be kindergarten through 12th grade and could
             include public and private schools.  Is a home where
          6  children are home-schooled included?
                  For preschool and child care facilities, the
          7  definition could be very broad.  Are all children's
             day care facilities included?  Would this include
          8  in-home day care facilities?  Is there a minimum
             number of children that must be cared for in the day
          9  care?  Are church schools included in either of
             these definitions?  Also, are the associated
         10  recreational areas to schools only the contiguous
             areas?  Are arenas or fields not owned by the
         11  schools but leased or used for recreational
             activities included?  From where is the measurement
         12  to the composting area made?  In the case of a
             health care facility, would the measurement be made
         13  to the building or to the property line?  Are
             buildings that are used for support such as
         14  maintenance buildings at health care facilities
             included in the setback?
         15       For the school and child care facilities with
             the associated recreational areas, is the
          16  measurement made to the associated area and building
             or to the property line?  These issues should be
         17  addressed in the definitions.
                  Second, we would like to make it clear that
         18  compost facilities must be set back only from
             facilities of concern that exist and are used for
         19  purposes for which a setback applies on the date
             that a complete application for the development of
         20  the compost facility or expansion of the compost
             facility is submitted to the Illinois EPA.
         21       Also, if the board chooses to make the setback
             retroactive, it should be made clear on what date to
         22  consider the location of the facility of concern
             from which the compost facility is set back.  A
         23  school, day care, or health care facility could have
             moved within 660 feet of the compost area after the
         24  compost facility was developed and in operation.
             Would an existing compost facility use the date it
                        L.A. REPORTING  (312) 419-9292
                                                            16
          1  was originally developed or another compliance date
             that the board establishes when demonstrating that
          2  the existing compost area is appropriately set back
             from the facility of concern?
          3       That concludes my testimony on behalf of the
              Illinois EPA today.
          4       MR. McGILL:  Does the agency have any
             additional testimony they would like to present
          5  today?
                  MS. DYER:  That's all the testimony we have.
          6  If there are any questions, we could try to respond
             to those.
          7       MR. McGILL:  Okay.  Why don't we open it up for
             questions?
          8       Are there any additional questions for the
             agency's witnesses?
          9       Seeing none, the board may have a question.
             Why don't we go off the record for a moment?
         10                 (Whereupon, a discussion was held off
                            the record.)
         11       MR. McGILL:  Let's go back on the record.
                  This is a question for Ms. Munie.  I believe in
         12  your testimony you stated that even if the board
             were to adopt the first notice version of the rules
         13  as final rules that a facility would have a
             compliance date at some point at which it would need
         14  to be in compliance with these new setback
             requirements?
         15       MS. MUNIE:  No, with all of 830.  But the way
             your rule is written, it's clear that it's only
         16  facilities that are expanded or developed after a
             specified date that have to comply with that new
         17  setback, but the rest of 830 must be complied with
              upon renewal or expansion.
         18       MR. McGILL:  So you would view these additional
             setback requirements that the board has proposed as
         19  a siting requirement?
                  MS. MUNIE:  Yes, for new facilities.
         20       MS. HENNESSEY:  New or expanded.
                  MS. MUNIE:  New or expanded, yes.
         21       MR. McGILL:  Thank you.
                  MS. HENNESSEY:  I have a question.  Earlier in
         22  your testimony, I thought I heard you say that the
             agency doesn't support the setbacks even as
         23  proposed.  Is that correct?  I guess, I -- first of
             all, is that -- did I understand you correctly?
         24       MS. MUNIE:  Yes.  In our original testimony, we
             stated that we don't support the need for it.
                        L.A. REPORTING  (312) 419-9292
                                                            17
          1       MS. HENNESSEY:  Although I thought in your
             later public comments filed after we had kind of
          2  discussed this potential compromise proposal that
             the agency at least didn't object to it.
          3       MS. MUNIE:  We don't object to it.
                  MS. HENNESSEY:  And also, on definitions, I
          4  would just -- you raised some interesting questions
             on definitions.  In terms of health care facilities,
          5  I would note that the TACO refers it to -- which was
              an agency proposal, refers just to health care
          6  facilities, and I'm just wondering if the agency has
             had experience with that kind of term in other
          7  regulations outside of the composting facility and
             whether that might aid the agency in applying this
          8  regulation without further definitions.
                  MS. HENNESSEY:  By TACO, just for the record, I
          9  will make it clear, the Tiered --
                  MR. McGILL:  Tiered Approach to Corrective
         10  Action Objectives, Part 742 of 35 Illinois
             Administrative Code.
         11       MR. BAKOWSKI:  Right.  In the permit section,
             we do utilize some of the TACO information, but we
         12  don't routinely go through -- and it's fairly new,
             and we haven't -- in our section haven't run across
         13  that.  We did look back and look at some other
             permitting rules that had references, and we found
         14  one for hospitals, and I think we have a general
             idea what a hospital is, but some of the health care
         15  facilities were a little unclear.  I guess we can
             address some of that.  In comment, we can go back
         16  and talk to the -- primarily the underground storage
             tank program and the remedial project management
         17  programs, look at that.  They might have had some
             experience over the past year in that.
         18       MS. HENNESSEY:  Okay.  I'm a little --
             certainly we will have to give some thought to
         19  definitions.  One of the problems, though, when you
             start defining things is then there are questions
         20  about the definitions, so it seems there is never an
             end.  I mean, there are always going to be some gray
         21  areas, but it may be that health care facilities and
             schools, et cetera need some further definition.
         22       I think we were thinking of those terms -- I'm
             not speaking for the board, but at least my
         23  impression when we think of these terms in kind of
             ordinary, common sense usage of those terms to the
         24  health care facility would not be, for example, a
             drug rehab facility, I mean, because that wasn't the
                        L.A. REPORTING  (312) 419-9292
                                                            18
          1  kind of facility that we were necessarily concerned
             about.  It wasn't really discussed in some of the
          2  hearings that we had had.  But I guess I would just
             encourage you, if you can, to help us to come up
          3  with any suggested definitions that would be helpful
             for us to consider.
          4       MR. ANAND:  I would just like to add to what
             Ms. Hennessey was saying regarding landfill rules,
          5  we use the term schools in setting setbacks from
              landfills, so if you have any experience in defining
          6  schools under your landfill program, we can look at
             that.
          7       MS. MUNIE:  Actually, the schools was the
             easiest one.  It's when it went to day care
          8  facilities and the associated areas that it became
             tougher.
          9       MR. BAKOWSKI:  Yes, and recreational areas to
             schools because a lot of schools, you know, they
         10  just -- they just have adjacent areas that might be
             a public park that the school doesn't even control
         11  or a piece of land that some other entity may own
             and they let the schools go out and use those
         12  areas.
                  MR. McGILL:  I just had a question.  The
         13  current regulations have a setback requirement for
             residences, and the rule, as far as I know, does not
         14  specify a date certain by when the measurement is
             made.  How does the agency apply the current
         15  regulation?
                  MS. MUNIE:  The current regulation, first of
         16  all, there is a 200-foot setback and a 660-foot
             setback, and it's based on the date that the
         17  facility was first permitted or was expanded.
                  DR. DESAI:  Can I respond to the question about
         18  the home day care?
                  MR. McGILL:  Maybe we better let the agency
          19  respond to the question I just posed, but please
             keep your question, and you will have a chance to
         20  ask that.
                  MS. MUNIE:  The reference on that is Section
         21  830.203(c), and it specifies the 200-foot setback
             came from Section 39(m) of the act, and it was when
         22  compost facilities were first permitted under
             39(m).  And then there was a second setback added by
         23  the legislature of November 17th, 1991, for a
             facility that is developed or the permitted
         24  composting area is expanded after 1991 -- November
             17th, 1991, so that is set by that date that that is
                        L.A. REPORTING  (312) 419-9292
                                                            19
          1  the date you look at, location.
                  MR. McGILL:  Right.  I understand that.  I'm
          2  just saying that as far as I know, the rules don't
             specify a compliance date or a date when you would
          3  measure that eighth of a mile for a residence.  You
             were suggesting it should be a time certain like
          4  when a permit is -- permit application is submitted
             or when a permit is issued.
          5       MS. MUNIE:  Actually, we believe that for the
             rules as written, it would be the date that the
          6  application is complete -- made complete to us.
                   It was the question of if you make it
          7  retroactive, you will need to make it clear that --
             because we haven't seen a proposal on that yet, you
          8  should make it clear that it's a date that's
             specified, and that's the date that they look at
          9  it.
                  MR. McGILL:  In terms of the existing -- you
         10  had mentioned being in compliance with the setback
             at the time the permit application was complete.
         11       MS. MUNIE:  Yes.
                  MR. McGILL:  Is that approach that you just
         12  described anywhere in the regulations, the current
             regulations?
         13       MS. MUNIE:  That is under 830.203(d).
                  MR. McGILL:  If I understand (d), that's an
         14  operational requirement that you have to, by the end
             of each day, have your landscape waste in the
         15  windrows?
                  MS. MUNIE:  The only time you are required by
         16  the regulations to make an application demonstrating
             your location is when you are developing a new area
         17  or expanding under your compliance deadlines.  So if
             you don't have to make an application demonstrating
         18  it, the demonstration is not questioned again.
                  MR. McGILL:  Can we just go off the record for
         19  a minute?
                            (Whereupon, a discussion was held off
          20                 the record.)
                  MR. McGILL:  Let's go back on the record.
         21       Just for clarification, if we could get a
             response from the agency on what date they feel is
         22  the most appropriate to measure or to determine
             compliance with the setback.
         23       MS. MUNIE:  For retroactivity if it's
             retroactive?
         24       MR. McGILL:  No.  Forgetting that, as proposed
             by the board in its first notice and in the order.
                        L.A. REPORTING  (312) 419-9292
                                                            20
          1       MS. MUNIE:  We will be glad to do it in written
             comment.  However, you do have a compliance date set
          2  in the rules and --
                  MR. McGILL:  I think I need to specify.  By
          3  compliance date, I'm not referring to the January 1st,
             1999, date where we are talking about the facilities
          4  developed or expanded after that date.
                  You had talked about the permitting process and
          5  when you would determine if a proposed facility or
             expansion is within a certain distance from a
          6  protected facility.  Would it be when a permit
             application arrives or when it's complete or when a
          7  permit is issued or some other time?  In terms of
             the latter compliance date, what does the agency
           8  feel would be the most appropriate time to make that
             determination?
          9       MS. MUNIE:  It's when the application is
             complete at the agency.
         10       MR. McGILL:  Okay.  Is that an agency
             determination that's made in writing?
         11       MS. MUNIE:  That an application is complete?
                  MR. McGILL:  Right.
         12       MS. MUNIE:  Yes.
                  MR. McGILL:  And that is sent to the permit
         13  applicant?
                  MS. MUNIE:  It's sent to the permit applicant.
         14  We inform them either it's complete or it's
             incomplete for these reasons, and we give them the
         15  date -- the date that we receive the application is
             the date that it's determined approved.
         16       MR. McGILL:  Thank you.
                  As you know, these setback requirements apply
         17  also to nonpermitted landscape waste compost
             facilities.  Does the agency have any thoughts on
         18  what a compliance date would be for purposes of
             siting those nonpermitted facilities?
         19       MS. MUNIE:  It would be the date where it's
             developed or it's expanded because since they don't
         20  come in with an application to us, there is no paper
             trail.  It should be the date of construction for
         21  development or construction for expansion.
                  MR. McGILL:  You mean the date the construction
          22  commences?
                  MS. MUNIE:  Commences, yes.
         23       MR. McGILL:  I just have one more question.
             You had mentioned where to measure from.  The
         24  board's first notice opinion and order of Page 37
             mentions that the setback should be measured from
                        L.A. REPORTING  (312) 419-9292
                                                            21
          1  the nearest edge of the composting area to the
             nearest property line of the protected facilities.
          2       Does the agency agree with that approach?
                  MS. MUNIE:  The property line is a fine
          3  approach as long as -- when a city owns a school and
             they own more property than what is the school, but
          4  it's contiguous, there is a very hazy line right
             there where where does the school property line end
          5  and where does the city property begin if it could
             be the school property as opposed to the owner of
          6  the school which, in general, for public schools is
             the city.
          7       MS. HENNESSEY:  Is that different than -- how
             is it currently done for residences?  Is it done the
          8  same way:  Composting area to the property line?
                  MS. MUNIE:  Yes, yes.
          9       MS. HENNESSEY:  Okay.
                  MR. McGILL:  It is done to the property line of
          10  the residence?
                  MS. MUNIE:  It's done to the property line.
         11       MR. BAKOWSKI:  Usually a residence has a
             defined property.  When you have schools associated
         12  with churches, the church may have all kinds of
             pieces of property everywhere, and a school may sit
         13  on one part and they might go a half-mile over and
             that's their recreational area and things like
         14  that.
                  MS. MUNIE:  And in the case of a farm, it's
         15  defined as the manicured area around the home.
                  MS. HENNESSEY:  I see.
         16       MS. McFAWN:  Under what regs?
                  MS. MUNIE:  Under a determination --
         17       MR. BAKOWSKI:  I think that the agency's view
             is residences at farms are -- you know, a farm might
         18  be 9,000 acres, but what we consider the residence
             of a farm is the area where the house is where
         19  people live, and usually they manicure a certain
             area around there.  They maintain landscaping
         20       MS. McFAWN:  So that's how you have interpreted
             it for those?
         21       MR. BAKOWSKI:  Right.
                  MS. McFAWN:  I see.
         22       MR. McGILL:  Are there any other questions for
             the agency?
         23       If you would just state your name for the
             record, please.
         24       DR. DESAI:  My name is Renuka Desai.  I'm from
             Lake Forest, Illinois, and I just have a question
                        L.A. REPORTING  (312) 419-9292
                                                            22
          1  for the EPA.
                  How many violations do you need to revoke the
          2  permit of the existing facility?
                  MS. MUNIE:  The Illinois EPA does not have the
          3  authority to revoke a permit.
                  DR. DESAI:  So even if they have 100 violations,
          4  200 violations, still we can't do anything about
             it?
          5       MS. MUNIE:  We can enforce against them, and
             through an enforcement action, a permit can be
          6  revoked by the board.
                  MR. BAKOWSKI:  The decision to pursue
          7  revocation of a permit is based on the history of
             the facility, the number of violations, but more
          8  important than the number is the severity and the
             potential threat to human health and the
          9  environment.  So one violation that's real serious
             might cause a revocation where 100 violations of
         10  other provisions that don't have a direct impact on
             human health and the environment may not.
         11       MS. MUNIE:  But these violations must be
             adjudicated in front of a court where a determination
         12  must be made that we are right in the violation that
              we have cited.
         13       DR. DESAI:  Okay.  Thank you.
                  MR. McGILL:  Go ahead and state your name,
         14  please.
                  MS. BUCKO:  My name is Chris Bucko, and I was
         15  curious.  It appears that Ms. Munie was indicating
             that the agency's position was that this -- these
         16  proposed regulations would affect only developmental
             permits or expansion permits, and I was interested
         17  to hear how a renewal would be handled.
                  MS. MUNIE:  Under the regulation as written, it
         18  would just be facilities that expanded their
             composting area or newly developed facilities after
         19  a certain date.  And renewals would be handled the
             same way renewals are handled now.  If a facility
         20  was developed before 1991, it has a 200-foot setback
             from a residence; whereas, if it was developed after
         21  November 17th of 1991, there is a 660-foot setback
             to a residence.  This would be handled similarly.
         22       MR. McGILL:  Thank you.  Ms. Bucko, just for
             the record, you are with the Attorney General's
         23  office?
                  MS. BUCKO:  That's correct.
         24       MR. McGILL:  Thank you.
                  Are there any other questions for the agency's
                        L.A. REPORTING  (312) 419-9292
                                                            23
          1  witnesses?
                  Seeing none, I'm just going to go off the
          2  record for a moment.
                            (Whereupon, a discussion was held off
          3                 the record.)
                  MR. McGILL:  Let's go back on the record.
          4       Seeing no further questions for the agency's
             witnesses, I would like to thank the agency for
          5  coming here today and presenting this testimony.
                  MS. DYER:  You are welcome.
          6       MR. McGILL:  Let's go off the record for a
             moment.
          7                 (Whereupon, a discussion was held off
                            the record.)
          8       MR. McGILL:  Let's go back on the record.
                  At this point, we are going to turn to the
          9  testimony of those who have signed up to testify
             today.  Again, we will proceed in the order in which
         10  their names appear on the sign-up sheet.
                  At this point, I would ask Ms. Joy Hinz if she
         11  would step up.
                            (Brief pause.)
         12       MR. McGILL:  Why don't we go ahead and have the
             court reporter swear you in?
         13                 (The witness was duly sworn.)
                  MR. McGILL:  I just want to make sure that you
         14  again state your name and the organization you are
             representing here today and your position with that
          15  organization.
                  MS. HINZ:  My name is Joy Hinz, and I am with
         16  Will County.  We are responsible for enforcing the
             Environmental Protection Act and the regulations set
         17  forth, and I am here to make a statement prepared by
             our office in regards to two of the permitted
         18  facilities, as well as the proposal.
                  MR. McGILL:  Excuse me.  Would you just speak
         19  up a little?  I'm having a hard time hearing you.
                  MS. HINZ:  Oh, sure.
         20       MR. McGILL:  Thank you.
                  MS. HINZ:  I will go ahead and read the
         21  statement.
                  The Will County Land Use Department Waste
         22  Services Division would like to provide comments
             with regard to the technical feasibility of
         23  requiring a one-eighth mile setback for landscape
             waste compost facilities from health care
         24  facilities, from primarily secondary schools and
             their associated recreational areas, and preschool
                        L.A. REPORTING  (312) 419-9292
                                                            24
          1  and child care facilities and their associated
             recreational areas.
          2       The Pollution Control Board has concluded,
             quote, no relationship between exposure to certain
          3  levels of A. fumigatus spores and adverse health
              effects has been demonstrated.  This was stated in
          4  the opinion and order of the board, proposed rule,
             first notice, Page 5.
          5       In addition, the board further concluded that
             the concentration of A. fumigatus spores falls to
          6  background within approximately 500 feet of the
             composting area quoted in the opinion and order of
          7  the board, proposed rule, first notice, Page 5.
             Given these conclusions, there appears to be no
          8  imminent threat to cause the board to apply the new,
             more stringent setback requirements either
          9  prospectively or retroactively.
                  If the more stringent setback requirements must
         10  be imposed, the board should only apply them
             prospectively to any composting area developed or
         11  expanded no earlier than January 1st, 1999.
                  The Will County Land Use Department Waste
         12  Services Division is not aware of any documented
             adverse health effects resulting from exposure to
         13  A. fumigatus within Will County.  However, if more
             stringent setback requirements are imposed
         14  retroactively, at least one permitted compost site
             in the county would be closed:  Referenced, Land and
         15  Lakes in Romeoville.
                  Loss of this facility would inevitably result
         16  in an increased transportation cost for those
              residents using this site, increased open dumping
         17  and open burning, illegal dumping of landscape waste
             in landfills, and loss of sustainable market for
         18  landscape waste compost.
                  In summary, first, there appears to be no
         19  imminent public health threat to require a
             one-eighth-mile setback.  Secondly, retroactively
         20  applying the one-eighth mile setback would result in
             loss of permitted composting capacity within Will
         21  County and a sustainable market for landscape waste
             compost in this area.
         22       That's it.
                  MR. McGILL:  Thank you.  Are there any
         23  questions for this witness?
                  Seeing none, I'm just going off the record for
         24  a moment.
                        L.A. REPORTING  (312) 419-9292
                                                            25
          1                 (Whereupon, a discussion was held off
                            the record.)
          2       MR. McGILL:  Let's just go back on the record.
                  We just have one question.  Can you provide any
          3  testimony on the anticipated economic impact or
             economic effect of the first notice version of the
          4  proposed rules?
                  MS. HINZ:  We do not have any evidence at this
          5  time.
                  MR. McGILL:  Okay.  Thank you.
           6       Are there any other questions for this
             witness?
          7       MS. McFAWN:  I had just a few background
             questions.  Maybe I missed it, but you are with Will
          8  County?
                  MS. HINZ:  Yes.
          9       MS. McFAWN:  And your position with Will County
             is?
         10       MS. HINZ:  Environmental enforcement officer.
             We are a -- at the moment we are not, but we are
         11  normally a delegated county with the Illinois EPA.
                  MS. McFAWN:  And your statements today were
         12  made on behalf of Will County?
                  MS. HINZ:  Correct.
         13       MR. McGILL:  Any further questions for this
             witness?
         14       Seeing none, we would like to thank you for
             being here today.
         15       MS. HENNESSEY:  Thank you.
                  MS. HINZ:  Thank you.
         16       MR. McGILL:  We will now proceed with the
             testimony of Mr. Charlie Pick.
         17                 (Brief pause.)
                  MR. McGILL:  If the court reporter would swear
         18  in the witness, please.
                            (The witness was duly sworn.)
         19       MR. McGILL:  Again, before you begin, if you
             would just please state your name and identify any
         20  organization you are representing here today and
             your position with that organization.
         21       MR. PICK:  Certainly.  My name is Charlie
             Pick.  I am vice-president of Organics Management
         22  Company.  It's based in Chicago.
                  First, I would like to say for the record that
         23  the first notice recommendation by the board to
             apply the setback requirements to new or expanded
         24  facilities I think is entirely reasonable.  It's
             consistent, I think, with the intent -- original
                        L.A. REPORTING  (312) 419-9292
                                                            26
          1  intent of the setback requirements of the original
             EPA regulations.
          2       However, I do agree with Joyce Munie that a lot
             of work should go into looking at the definitions of
          3  the proposed additional facilities, health care
             facilities, schools and so forth that would be
          4  affected by this rule.
                  About a year ago, I think, in this room, I gave
          5  testimony about the economic impact as to the
             retroactive application of this rule, and I'm not
          6  going to rehash that other than to say that I
             maintain that a retroactive application of this rule
          7  would be pretty devastating to the composting
             infrastructure in the state.
          8       With respect to a prospective application, at
             the end of your first notice, you asked for
           9  testimony with respect to prospective and
             retroactive application of the rule, especially with
         10  regard to economics, and based on DCCA's comment
             that they are not able to provide it, I thought that
         11  my testimony might be helpful in looking at the
             prospective side of it.
         12       With a prospective application, what I
             understand that to mean would be an application of
         13  the rule at the time of permit expiration or renewal
             sometime in the future, and I do think that a
         14  prospective application would at least give an
             operator the opportunity to minimize the loss of
         15  investment by having some ability to plan for that
             date when their permit expires.  But obviously,
         16  there are a number of different dates across the
             whole variety of facilities that are currently
         17  permitted when that would occur.  It could be two
             months from now, two days from now, or two years
         18  from now, so the impact could range from devastating
             to at least, you know, minimal, although site
         19  improvement costs generally are completely lost when
             a facility is closed simply because you can't sell
         20  those improvements typically to a new property
             purchaser.  They don't place any economic value on
         21  those.
                  But aside from the economic implications of a
          22  closure sometime in the future, I think it's more
             important to look at the effect on the composting
         23  capacity in the state of Illinois if that were put
             into effect prospectively.  Essentially, the
         24  facilities that would be affected by this rule would
             be unlikely to relocate in any kind of close
                        L.A. REPORTING  (312) 419-9292
                                                            27
          1  proximity to where they are now simply because if
             the rule affects them, it's quite likely that they
          2  are in a densely populated area where it would be
             almost impossible to find another piece of property
          3  nearby that would find -- that would be suitable for
             composting.  Lake Forest did an investigation to try
          4  and move their site, and they couldn't find anything
             with any kind of reasonable distance -- reasonable
          5  proximity to the original site.
                  And to give you an illustration of the problem
          6  in relocating, if you look at a five-acre composting
             facility and then look at a 660-foot setback around
          7  that facility, if you look at that all told, you are
             looking at a 73-acre block of land that has --
          8  effectively has to have nothing in it, so to speak,
             in terms of applicable receptors as far as the
           9  setback requirements are concerned.  So 73 acres of
             land, that's 660 feet all around plus the size of
         10  the facility.  That is a huge piece of land in any
             kind of urban environment where essentially nothing
         11  is going on.
                  In addition to that, typically operators look
         12  for more than 660 feet in the prevailing wind
             direction where there is no receptor at all, whether
         13  that be -- forget about the statutory requirements,
             but in terms of any sort of office building or any
         14  other sensitive receptor that would object to the
             facility, they are looking for 1,000 feet, 1200
         15  feet, 1500 feet where there is nobody there.  So the
             likelihood of relocating a facility in close
         16  proximity to the affected facility that was closed
             down under this rule is really, really, really
         17  slim.
                  MS. HENNESSEY:  Can I just interrupt you
         18  because I think there may be unwitting confusion
             that we have created about the terms prospective and
         19  retroactive.  I think I speak for the board.  I
             don't officially speak for the board.  My
         20  understanding when we talked about this
             prospectively -- applying it prospectively, that
         21  meant it would only apply to facilities -- to either
             new facilities or facilities that were expanding.
          22       MR. PICK:  Okay.
                  MS. HENNESSEY:  What you seem to be talking
         23  about when you use the word prospective is having
             this requirement apply to existing facilities
         24  already sited sometime in the future, so either when
             their permits come up for renewal or at some set
                        L.A. REPORTING  (312) 419-9292
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          1  date.
                  MR. McGILL:  Even if they don't expand.
          2       MR. PICK:  Right.
                  MS. HENNESSEY:  Okay.  So what you have been
          3  addressing now is the application of these setbacks
             to existing facilities?
          4       MR. PICK:  Right.  Maybe I misunderstood.
                  MR. McGILL:  That is one of the questions we --
          5       MR. PICK:  I thought that was part of the
             question.
          6       MS. HENNESSEY:  We did pose that question, but
             I just wanted to make sure that you don't have a
          7  problem with this proposal as it applies to only new
             or expanded facilities.
          8       MR. PICK:  That's correct.
                  MS. HENNESSEY:  Okay.  Thank you.
          9       MR. PICK:  Yeah.  I'm just looking at the
             existing facilities, and I'm trying to give you some
         10  economic basis.
                  MS. HENNESSEY:  Which is exactly what we asked
          11  for.  Thanks.
                  MR. PICK:  Okay.
         12       So given that the facilities affected would
             close, it would be unlikely to relocate in any kind
         13  of close proximity to their original location.  What
             you are left with in a scenario like that, in my
         14  estimation, would be not unlike what the solid waste
             experience -- solid waste industry experienced under
         15  Subtitle D, which is that a lot of the small, local
             landfills have no choice but to close.  And what was
         16  left was essentially a transfer station
             infrastructure, which is not a bad thing, but it was
         17  a transfer station that took this solid waste from
             more densely populated areas out to larger, more
         18  remote landfills, and I don't see the composting
             business going in any other direction under this
         19  scenario.  So many of these composting sites would
             likely become transfer stations, or some of them
         20  would just close completely and other transfer
             stations would open.
         21       The net result, I believe, is that you would
             have two things.  One:  You would have larger, more
         22  remote composting facilities just like you have
             larger, more remote landfills now.  And number two:
         23  The transportation costs to get the materials from
             the populated areas to those remote facilities would
          24  have to be borne by the generators, and when I say
             generator, it's the taxpayer or a landscaper which
                        L.A. REPORTING  (312) 419-9292
                                                            29
          1  would, in turn, pass that cost on to the homeowner.
             So ultimately, the citizens would pay the additional
          2  cost of transportation and processing to move the
             material from the transfer station and over to the
          3  remote composting facilities.
                  Transfer stations mean additional handling,
          4  additional processing, and then the trucking in both
             directions because not only would you transfer raw
          5  material out to the sites, but you would have to
             bring the compost back to the urban areas in order
          6  to make it marketable because if you are 60 miles
             from downtown Chicago or 100 miles from downtown
          7  Chicago, it is quite difficult to market finished
             product in that area of the world.
          8       So in conclusion, I believe that if the rule
             were applied to facilities at the time of permit
          9  expiration or renewal that that would result in most
             of those facilities closing down and considerable
         10  additional costs to the homeowner in terms of
             disposal fees for the yard waste that they
         11  generate.
                  MS. HENNESSEY:  We had a lot of testimony at
         12  the first hearing about how the half-mile proposed
             setback would be a problem.  As I understand what
         13  you are saying today, even an eighth-of-a-mile
             setback is going to cause just -- would it cause the
         14  same number of facilities to close, would you
             think?
         15       MR. PICK:  Well, it's going to be fewer than a
             half a mile for sure, but there are a number of
         16  facilities -- because schools in particular are --
             there are a lot of facilities that are not very far
         17  from schools, and so they would be closed down.  I
             mean, I know that there was testimony even to the
         18  effect of the rule on the eighth-of-a-mile setback
             for existing facilities, and a lot of them would be
         19  affected.  I believe Crystal Lake would be, village
             of Winnetka, the city of Evanston.  I don't have a
         20  complete list, but a lot of facilities.  So to the
             extent that each one of those closes, then those
         21  costs are going to be higher.
                  MR. McGILL:  Are there any questions for this
         22  witness?
                  Go ahead and state your name.
         23       MS. GARRETT:  Susan Garrett.
                  In regard to the economic impact, I think we
         24  testified originally that other communities make
              allowances for the cost of transporting yard waste,
                        L.A. REPORTING  (312) 419-9292
                                                            30
          1  and that is picked up by taxpayers.  As far as I
             know, Highland Park is a good example.  There have
          2  not been any negative repercussions on that issue at
             all, and I think it's important to discuss and to
          3  debate the idea of having these sites farther away
             from the public and then having the transportation
          4  cost built into it because I think in the long run,
             that's what the citizens do want, and I think in the
          5  long run it will be a much healthier industry for
             the composting business.
          6       MR. PICK:  Was that a question or a comment?
                  MS. GARRETT:  I just wanted to comment on what
          7  you said regarding the extra dollars that taxpayers
             would pick up.
          8       MR. McGILL:  Let me just clarify, Ms. Garrett
             is still under oath, and there will be an
          9  opportunity to provide additional testimony since
             Mr. Pick is the last person to sign up.  So if you
         10  have any specific questions for this witness, why
             don't we pose those now?  Then everyone will have a
         11  chance to provide any additional testimony, if they
             would like, a little later.
         12       Are there any questions for this witness?
                  Seeing none, I just have one question.  I was
         13  wondering if you could provide any testimony on the
             anticipated economic effect of the first notice
         14  version of the proposed rules.  And just for
             clarity, as proposed at the first notice, the new
         15  setback requirements would apply only to a compost
             facility if it is developed after January 1st, 1999,
         16  or if it's permitted composting area is expanded
             after January 1st, 1999.
         17       MR. PICK:  I think the economic impact under
             that notice would be minimal because the expansion
         18  is voluntary and you know what the rules are, and if
             it doesn't make economic sense, you don't do it.
         19       As far as a new facility, it's the same thing:
             You go in with your eyes open and make that decision
         20       MR. McGILL:  But a facility -- if someone did
             want to develop or expand a facility, what sort of
         21  economic impact do you think these new rules would
             have?
         22       MR. PICK:  I think what you are more likely to
             see is larger, more remote facilities because the
         23  more stringent the setback requirements, the harder
             it is to site these facilities.  But again, the
         24  developer or owner of a facility that would be new
              or expanded would not undertake that investment
                        L.A. REPORTING  (312) 419-9292
                                                            31
          1  unless they felt it warranted.  So I think it's -- I
             don't see any net impact on the industry as a result
          2  of it or on cost.
                  MR. McGILL:  Are there any other questions for
          3  this witness?
                  Seeing none, I would like to thank you for
          4  being here today and providing that testimony.
                  At this point, I would ask if there is anyone
          5  who would like to provide testimony at this point.
                  I see two individuals.  I saw Dr. Desai's hand
          6  first, so Dr. Desai, if you would step up here,
             please.
          7                 (Brief pause.)
                  MR. McGILL:  Why don't you go ahead and let the
          8  court reporter swear you in first?
                            (The witness was duly sworn.)
          9       MR. McGILL:  If you would just state your name
             for the record.
         10       DR. DESAI:  Okay.  My name is Renuka Desai, and
             I just want to make a statement.  I would like to
         11  thank the board for taking their time and looking
             into this issued because nobody was ready to listen
         12  to this.  You have invested so much time and you
             have come to some kind of reasonable conclusion, and
          13  I want to thank you, and I would strongly support
             whatever decision the board will make because I know
         14  that you will make the decision in good faith.
                  Thank you.
         15       MR. McGILL:  Thank you.
                  Were there any questions for Dr. Desai?
         16       Seeing none, I will just note that
             Dr. Desai was one of the proponents, along with
         17  Susan Garrett.
                  I believe there was one other person who
         18  indicated they would like to provide testimony.  If
             you would step up, you are welcome to sit or stand
         19  as you wish.
                  MR. GEISS:  Okay.
         20                 (Brief pause.)
                  MR. McGILL:  We'll go ahead and have the court
         21  reporter swear you in.
                            (The witness was duly sworn.)
         22       MR. McGILL:  Before you begin, if you would
             state your name and any organization you are
         23  representing here today and your position with that
             organization.
         24       MR. GEISS:  My name is Jeffrey Geiss.  I work
             for CDT Landfill in Joliet, and I am operations
                        L.A. REPORTING  (312) 419-9292
                                                            32
          1  manager at the Joliet landscape waste compost
             facility.  I have been the manager there since
           2  1992.
                  First, CDT would like to support the positions
          3  of the Illinois Environmental Protection Agency and
             the Will County land use department.  The only -- we
          4  have talked to our engineers and we do not feel that
             the setback requirement will affect our facility
          5  today, but the questions that we were concerned
             about would be that if new child care facilities or
          6  health care facilities were located within the
             setback at a later time, if this would affect our
          7  permit.
                  The other question we had was if a permit
          8  renewal was considered in an expansion, and I think
             that question was answered earlier.
          9       We also believe that this regulation could, in
             fact, increase illegal dumping of yard waste in
         10  areas where the compost facilities would be
             affected.
         11       Thank you.
                  MR. McGILL:  I just wanted to ask -- was that
         12  the extent of your testimony?
                  MR. GEISS:  Yes.
         13       MR. McGILL:  I just wanted to ask a question.
             In terms of what the board has proposed at first
         14  notice, the new setback requirement would apply only
             if a facility is developed or expanded after
         15  January 1st, 1999.
                  MR. GEISS:  Correct.
          16       MR. McGILL:  The organization you represent, do
             you have any -- do they have any thoughts on what
         17  the board has proposed at first notice in terms of
             economic impact or the merits of the first notice
         18  proposal?
                  MR. GEISS:  As I have read this and as I
         19  understand it, it would not affect us today.  There
             was some question, I believe, to the effect of
         20  retroactive.  We still don't believe a retroactive
             would affect us.
         21       Currently, we are a fairly rural area.  There
             is farms to the north.  The facility is sited on top
         22  of a closed landfill.  There are not many other uses
             for that landfill, so if it was a retroactive and at
         23  a later date one of these facilities that required
             an eighth-mile setback was located within that
         24  eighth mile and that would displace the facility,
             that would be an economic hardship for us because we
                        L.A. REPORTING  (312) 419-9292
                                                            33
          1  do not feel that we could relocate this site and
             operate the facility at a profit because of the
          2  current competitive economic state of the industry.
                  MR. McGILL:  Okay.  I would just like to note
          3  one thing for clarification.  This is on Page 37 of
              the board's first notice opinion and order.  It's in
          4  a footnote.  A similar concern that you just
             expressed was raised by the city of Lake Forest, and
          5  the board clarified in that footnote, and I will
             just quote:  To clarify, the proposed first notice
          6  amendments to 35 Illinois Administrative Code
             830.203(c) are siting requirements.  A compost
          7  facility sited in compliance with these requirements
             would not violate them because a health care
          8  facility, for example, is thereafter constructed
             within one-eighth of a mile.
          9       MR. GEISS:  Thank you.  That clarifies my
             question then.
         10       MS. HENNESSEY:  Maybe what you are suggesting
             to us is that needs to be set forth in the
         11  regulation itself?
                  MR. GEISS:  Well, as I read the regulation,
         12  that was a question that came to mind, and me being
             a layman and an operations manager and not a lawyer,
         13  that's the questions that popped into my mind.
                  MS. HENNESSEY:  Does your facility have any
         14  current plans to expand?
                  MR. GEISS:  Our site is approximately 20 acres,
         15  and currently, it meets all the needs for our
             customers, so we don't have any immediate future
         16  plans to expand the site.
                  MS. HENNESSEY:  Assuming you were to expand,
          17  would this regulation affect you?
                  MR. GEISS:  Today it wouldn't because today
         18  there is corn fields to the north of us.  And if
             that cornfield, for example, is developed and a
         19  facility of such nature that would require a setback
             was placed within that setback, then that could
         20  affect an expansion.
                  MS. HENNESSEY:  How large is your site?  You
         21  said it's 20 acres?
                  MR. GEISS:  Approximately 20 acres.
         22       MS. HENNESSEY:  Okay.  Thank you.
                  MR. GEISS:  Thank you.
         23       MR. McGILL:  Are there any other questions for
             this witness?
         24       Seeing none, let's just go off the record for a
             moment.
                        L.A. REPORTING  (312) 419-9292
                                                            34
          1                 (Whereupon, a discussion was held off
                            the record.)
          2       MR. McGILL:  Let's go back on the record.
                  I would like to thank you for participating
          3  today.
                  MR. GEISS:  Thank you for having the hearing.
          4       MR. McGILL:  Is there anyone else who would
             like to testify today?
          5       MS. FRANZETTI:  I do have a question based on
             the last comment made by you on your footnote if I
           6  could ask that
                  MR. McGILL:  Maybe I could explain the context
          7  of this proceeding.  The people you see before you
             up here are not the entire board, so we can't really
          8  speak on behalf of the board.
                  MS. FRANZETTI:  I understand.
          9       MR. McGILL:  The board speaks through its
             written opinions and orders, but we certainly
         10  welcome comments and questions.
                  MS. FRANZETTI:  I will put it in the form of a
         11  comment.
                  MR. McGILL:  In the form of public comment,
         12  that would be fine.
                  MS. FRANZETTI:  I should not have called it a
         13  question.
                  My name is Susan Franzetti.  I'm with Gardner,
         14  Carton, & Douglas here in Chicago.
                  The confusion that I think starts getting
         15  created when you --
                  MR. McGILL:  I'm sorry.  Are you posing a
         16  question?  We don't have a witness right now.
                  MS. FRANZETTI:  No, no.  I just want to make a
         17  comment
                  MR. McGILL:  If you are testifying, we need to
         18  get you sworn in, so why don't you step up, if you
             don't mind?
         19       MS. FRANZETTI:  I will stand right here.  It's
             not going to take that long.
         20       MR. McGILL:  Okay.  Why don't we swear in the
              witness?
         21                 (The witness was duly sworn.)
                  MR. McGILL:  Could you just again state the --
         22       MS. FRANZETTI:  Susan Franzetti for Gardner,
             Carton, & Douglas for the city of Lake Forest.
         23       MR. McGILL:  Thank you.
                  MS. FRANZETTI:  I think the confusion that
         24  starts to get created -- and I just want to point it
             out.  I know we can address this in comments, but I
                        L.A. REPORTING  (312) 419-9292
                                                            35
          1  think it just got underscored by the exchange with
             the last witness, and that is that the footnote on
          2  Page 37 does clarify things with respect to the
             proposed first notice regulation that the setback is
          3  a siting requirement and, therefore, for an existing
             facility.  If a protected facility or facility of
          4  concern -- we have used a few different terms for
             those today -- gets located within that new setback
          5  requirement, that wouldn't cause the facility to
             close down.  I think that's clear.
          6       However, when you start talking about
             retroactivity, that's when I think it becomes very
          7  unclear because let's just assume if you made this
             retroactive and at some point, let's say at renewal,
           8  let's assume that, an existing facility violates the
             new revised setback requirement, I believe they
          9  would have to close down.  However, under this
             footnote statement, an existing facility shouldn't
         10  have to close down if a protected facility comes to
             be located within the setback.  It doesn't seem to
         11  make sense.  It doesn't add up in terms of how this
             footnote is written and then when you start to talk
         12  about retroactivity because, in fact, then unless
             this footnote were to then change, you have this
         13  incongruous situation whereby an existing facility
             that wouldn't meet this proposed new setback
         14  requirement would have to close, but a new one that
             met it at one time but now something locates within
         15  that setback -- one-eighth-of-a-mile setback would
             not have to close.
         16       I can't rationalize that, so I just wanted to
             make that comment, and I know we can address that in
         17  public comment, but I think that's why you have some
             of this uncertainty about what happens then with an
         18  existing facility.  I think it's because of the
             specter of retroactively when you combine it with
         19  this footnote.
                  Thank you.
         20       MR. McGILL:  Thank you.  And I just would like
             to ask, is there anyone who has a question for this
          21  witness?
                  MS. HENNESSEY:  Ms. Franzetti, just to clarify
         22  your comment, are you raising the similar issue that
             the agency raised which is suppose we apply this a
         23  retroactively.  Do we need to basically go back and
             look at when the facility was originally sited and
         24  see if in one one-eighth of a mile there were any of
             these protected facilities?  Is that the inquiry
                        L.A. REPORTING  (312) 419-9292
                                                            36
          1  that we should undertake?  Or will it be looking at
             the time of renewal?  At the time that a permit is
          2  renewed, do we need to then determine if there are
             any protected facilities within the one-eighth-of-a-mile
          3  setback?
                  MS. FRANZETTI:  It's certainly a related point,
          4  but it's not the same point that I think I'm trying
             to make.  There would seem to be -- when you get
          5  into retroactivity, there would seem to be an
             arbitrariness introduced between how the regulation
          6  works for a brand new facility that only has to meet
             it at the beginning and then it can be violated
          7  afterwards by things moving in to its area versus
             the existing facility.  That's the point I'm trying
          8  to make.  They are related points.  I'm not sure
              they are identical.
          9       MS. HENNESSEY:  Okay.  I understand.  Thank
             you.
         10       MR. McGILL:  Are there any further questions
             for this witness?
         11       Seeing none, I will ask again, is there anyone
             else who wishes to testify today?
         12       Seeing no response, I will move on to a few
             procedural matters to address before we adjourn.
         13       Why don't we go off the record for a moment?
                            (Whereupon, a discussion was held off
         14                 the record.)
                  MR. McGILL:  Let's go back on the record.
         15       Public comments must be received by the clerk
             of the board no later than 4:30 on September 4th,
         16  1998.  The mailbox rule does not apply to this
             filing.
         17       Anyone may file public comments.  These public
             comments must be filed with the clerk of the board.
         18  Public comments should reference the docket number
             of this rulemaking, R97-29, as well as the name,
         19  address, and affiliation, if any, of the
             commentary.
         20       If you are on the service list, your public
             comment must be simultaneously delivered to all
         21  persons on the service list.  You should contact me
             or the clerk's office to make sure you have the
         22  current service list.
                  Copies of the transcript of today's hearing
         23  should be available at the board here in Chicago by
             August 12th, 1998.  At the present time, we cannot
         24  put transcripts on the board's home page on the
             Worldwide Web.  Accordingly, for the time being, we
                        L.A. REPORTING  (312) 419-9292
                                                            37
          1  will provide an electronic copy of this transcript
             on disk free of charge.
          2       Are there any other matters that need to be
             addressed at this time?
          3       MS. HENNESSEY:  I would just like to, again,
             thank everyone for participating.  I wish we had as
          4  much public participation in all of our
             rulemakings.  Some great points have been raised,
          5  and we would take them back and give them some
             thought and look forward to your public comments.
          6       MR. McGILL:  Thank you.
                  Are there any other matters that need to be
          7  addressed at this time?
                  Seeing none, I would like to also thank
          8  everyone for their participation today.  This
             hearing is adjourned.
          9                 (Whereupon, the hearing was adjourned
                            at 11:40 a.m.)
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                        L.A. REPORTING  (312) 419-9292
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          1  STATE OF ILLINOIS )
                               ) SS.
          2  COUNTY OF COOK    )
          3
          4            I, CARYL L. HARDY, a Certified Shorthand
          5  Reporter doing business in the County of Cook and
          6  State of Illinois, do hereby certify that I reported
          7  in machine shorthand the proceedings at the hearing
          8  of the above-entitled cause.
          9            I further certify that the foregoing is a
         10  true and correct transcript of said proceedings as
         11  appears from the stenographic notes so taken and
         12  transcribed by me.
         13
         14
         15
         16
         17                      CSR No. 084-003896
         18
         19  SUBSCRIBED AND SWORN TO
             before me this ____ day
         20  of ___________, A.D., 1998.
         21  _____________________________
                     Notary Public
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                        L.A. REPORTING  (312) 419-9292