COMMENTS SUBMITTED BY DOMINION GENERATION
SERVICE LIST
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REC1~VED

CLERK’S OFFrCE

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

~ 4

IN THE MATTER OF:

)

PROPOSED NEW 35 ILL. ADM. CODE 217,

)

SUBPART V, ELECTRICAL POWER GENERATION )

NOTICE

To:

Dorothy Gunn, Clerk

Illinois Pollution Control Board

State of Illinois Center

100 West Randolph, Suite 11-500

Chicago, Illinois 60601

STATE

OF ILLINOIS

Pollution Control Board

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(Rulemaking Air)

Bob Beauchamp, Hearing Officer

Illinois Pollution Control Board

State of Illinois Center

100 West Randolph, Suite 11-500

Chicago, Illinois 60601

SEE ATTACHED SERVICE LIST

Please take notice that Dominion Generation is filing with the Clerk of the Office of

the Illinois Pollution Control Board the following comments, copies of which are

hereby served on you.

DOMINION GENERATION

By: 4~i if

Leonard R. Dupuis

Manager, Environmental Policy

Dated: January 3, 2001

Leonard R. Dupuis

Manager, Environmental Policy

Dominion Generation

5000 Dominion Blvd.

Glen Allen, Virginia 23060

RECEIVED

CLERK’S OFFICE

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

JAN o 4 zooi

IN THE MATTER OF:

)

STATE OF ILLINOIS

)

Pollution Control &ard

PROPOSED NEW 35 ILL. ADM. CODE 217,

)

ROl -16

SUBPART V, ELECTRICAL POWER GENERATION )

(Rulemaking Air)

COMMENTS SUBMITTED BY DOMINION GENERATION

Dominion Generation submits the following comments for the Illinois Pollution

Control Board’s (IPCB) consideration regarding the Illinois Environmental

Protection Agency’s (IEPA) Proposed New 35 ILL. ADM. CODE 217, Subpart V

rule, which was filed with theBoard on October 16, 2000.

Dominion is a fully

integrated, investor owned electric and gas energy provider headquartered in

Richmond, VA with power generating facilities located in Illinois, Virginia, West

Virginia, North Carolina, Ohio and Pennsylvania. Our Corporation operates two

600-MW coal-fired units at the Kincaid Generating Station in Kincaid, Illinois that

will be subject to the requirements of this rule, which IEPA is proposing as a

means of achieving the National Ambient Air Quality Standard (NAAQS) for ozone

for the Metro-East St. Louis area . The Kincaid units are also subject to the

requirements of IEPA’s Subpart W rule, which has been developed to implement

the requirements of EPA’s NOx SIP Call rule and was adopted by this Board in a

final order issued on December 21, 2000.

The Subpart V rule will require affected sources to reduce NOx emissions to meet

a 0.25 lb/mmBtu emission rate over the 5-month ozone season (May-September)

beginning in May 2003. The Subpart W rule (NOx SIP Call rule) will require even

steeper emission reductions in order to achieve very stringent ozone season NOx

emisson budgets (caps) set by U.S EPA. Initially, the IEPA intended to use the

Subpart W rule to address both the Agency’s obligations to submit a state

implementation plan (SIP) complying with EPA’s NOx SIP Call and to achieve

attainment of the ozone standard in the Metro-East St. Louis nonattainment area

and the Lake Michigan/Chicago nonattainment area. However, the U.S. Court of

Appeals in the DC Circuit issued an order in August 2000 extending the SIP Call

compliance date from May 1, 2003 to May 31, 2004. Subsequently, IEPA filed a

motion to amend the Subpart W rule changing the compliance date from May 1,

2003 to May 31, 2004. IEPA is therefore proposing to implement the Subpart V

rule beginning in May 2003 in order to achieve NOx emission reductions needed

in order to meet the State’s target date to address the Metro-East St. Louis

nonattainment problem.

During the public hearing held by the Board on

November 28, 2000 IEPA stated its intention to continue the implementation of

the Subpart V rule even after the more stringent Subpart W rule takes effect.

While Dominion continues to support a rate-based 0.25 lb/mmBtu approach and

recognizes that the Subpart V rule is needed during the 2003 ozone season as a

“stop-gap” measure, we believe it will no longer be necessary for the IEPA to

continue implementation of the Subpart V rule once the more stringent Subpart W

rule is implemented. As noted above, the Subpart W rule will require electric

generating units in Illinois to reduce NOx emission levels well below the 0.25

lb/mmBtu rate in order to meet the state NOx emission budgets set by U.S. EPA.

In fact, due to the erroneously low growth factors assumed by U.S. EPA in

developing the NOx SIP budget for electric generating units in Illinois, the

emission rates actually needed to comply with the budgets will be below the

stringent 0.15 lb/mmBtu limit used by U.S. EPA in calculating the budgets.

Therefore, the emission reductions required under the Subpart W rule will be

more than sufficient to achieve the NAAQS for the Metro-East St. Louis

nonattainment area. IEPA itself has recognized this and had fully intended on

using the Subpart W (SIP Call) rule to achieve attainment targets for both the

Metro-East and Chicago ozone nonattainment areas prior to the Court’s order

extending the compliance date for the NOx SIP Call. In addition, the Subpart V

rule and Subpart W rules will require different compliance and reporting

requirements. Since the sources subject to the Subpart V rule are also affected

by the Subpart W rule, the simultaneous implementation of these rules is

superfluous and will impose additional burden on sources affected by the rules.

For these reasons, Dominion urges the Board to revoke the Subpart V rule once

the Subpart W rule takes effect.

Another issue Dominion urges the Board to carefully consider is the availablility of

early reduction credits (ERC’s) generated under the provisions of the Subpart W

rule once the Subpart V rule becomes effective in May 2003. Dominion is

concerned about IEPA’s interpretation of the Subpart W language specifying the

emission reductions required to attain ERO’s, for eventual NOx allowances from

the compliance supplement pool (CSP), in which the Agency would require

reductions 30

beyond the level (rate) required under the Subpart V rule.

Dominion believes that ERC’s should be granted for any reductions achieved

during the 2003 ozone season that are below the 0.25 Ib/mmBtu rate required by

the Subpart V rule, provided that both the 0.25 lb/mmBtu rate and the emission

rate achieved are at least 30 below the unit’s Title IV emission rate or other

federally enforceable limit at the time the Subpart W rule is adopted. In other

words, a source should be allowed to achieve ERC’s only for that portion of

equivalent tonnage reduction below 0.25 lb/mmBtu that is also 30 below its Title

IV or other applicable permit level at the time the the Subpart W rule is adopted.

We believe that such an interpretation would provide reasonable assurances that

meaningful reductions were being achieved by sources requesting ERO’s. While

there is some uncertainty as to how many allowances will still be left in the state’s

CSP for issuance for ERC’s generated in the 2003 ozone season, Dominion

believes that a reasonable possibility exists that as much as 50 of the CSP

allowances may be available in 2003 if U.S. EPA does not approve lEPA’s SIP

revision (submitted in October 2000) for the NOx SIP Call by May 1, 2001.

Should approval from U.S. EPA not occur by May 2001, reductions achieved

during the 2001 ozone season will not qualify for ERC’s under the Subpart W rule,

and up to (but no more than) 50 of the allowances from the CSP will then be

available for ERC’s generated in 2002 and the .remaining allowances will be

available for ERC’s generated in 2003.

In closing, Dominion commends the IEPA and this Board for its efforts in allowing

affected stakeholders the opportunity to provide meaningful input through face-to-

face meetings, public hearings and written comment throughout the development

of both the Subpart W and Subpart V rules. Thank you for this opportunity to

provide comment, and we again urge the Board to consider the concerns we’ve

expressed regarding the continued implementation of the Subpart V rule once the

more stringent Subpart W rule becomes effective.

Leonard R. Dupuis

Manager, Environmental Policy

Dominion Generation

SERVICE LIST

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Karen Bernoteit

IL Environmental Regulatory Group

215 East Adams Street

Springfield, IL 62701

Amy Clyde

Dynegy Midwest Generation, Inc.

2828 North Monroe Street

Decatur, IL 62526

Joe Darguzas

Enviro Power

505 Hamilton Wood

Homewood, IL 60430

Rick Diericx

Dynegy Midwest Generation Inc.

2828 N. Monroe Street

Decatur, IL 62526-3269

Carol L. Dorge

315 E. Sheridan Road

Lake Bluff, IL 60044

Lenny Dupis

Dominion Generation

5000 Dominion Blvd

Glen Allen, VA 23060

Cynthia Faur

Sonnenschein, Nath & Rosenthal

8000 Sears Tower

633 5. Wacker Drive

Chicago, IL 60601

J. Derek Furstenwerth

Reliant Energy, Incorporated

12301 Kurland Dr.

Houston, TX 77034

Daniel J. Goodwin

Goodwin Environmental Consultants, Inc.

400 Bruns Lane

Springfield, IL 62702-4617

James T. Harrington

Ross & Hardies

150 North Michigan Ave., Suite 2500

Chicago, IL 60601

Heidi E. Hanson

H.T. Hanson, Esq. P.C.

4721 Franklin Avenue Suite 1500

Western Spring, IL 60558-1720

Kevin B. Haynes

Schiff, Hardin, & Waite

6600 Sears Tower

Chicago, IL 60606

Steven J. Harvey

Ameren Services

1901 Chouteau

P0 Box 66149, MC 602

St. Louis, MO 63166-6149

Bill Hoback

HodgeSpringfield,3150Marion,LeonardSpringfield,Southern3695KatherinePG11543BoxRoland5.Lake&

IL5776Hopkins

ILDwyerD.Street62959-8500ofILPowerILAvenueHodgeEgypt6270362705-5776Coop.Road

Alan Jirik

Corn Products

6500 Archer Road

Bedford Park, IL 60501

Bryan Keyt

Bell, Boyd & Lloyd

70 W Madison St., ff3300

Chicago, IL 60602

Brian Marquez

Ross & Hardies

150 North Michigan Ave., Suite 2500

Chicago, IL 60601

Joe McGervey

Energy & Environmental Analysis, Inc.

1655 N. Fort Myer Drive

Arlington, VA 222209

Tracey Milhelic

Baker & McKenzie

130 E. Randolph, Suite 3500

One Prudential Plaza

Chicago, IL 60601

Scott Miller & Kent Wanninger

Midwest Generation EME, LLC

I Financial Place

440 S. LaSalle St., #3500

Chicago, IL 60605

Frederick G. Muckerman

Compliance Technologies

CityChicago,70Springfield,William800W.EastWater,MadisonA.MonroeILMurrayLight60602IL

62757St.,&

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BrookeBryanMichaelChicago,Bell,70

W.BoydMadisonOhmPetersonKeytILand60602LloydSt., #3300

IL215EnvironmentalEastAdams

StreetRegulatory

Group

KattenNancySpringfield,535

W.RichMuchinMonroeIL

62701&Street,ZavisSuite

1600

Chicago, IL 60661-3693

GabrielDavidRossChicago,150N.&RieserMichiganHardiesM.ILRodriguez60601-7576Avenue#2500

6600Schiff,SearsHardin,Tower&Waite

Chicago,Daniel

RosenblumIL

60606

EnvironmentalMaryChicago,35

E. WackerSchoenIL

60601Drive,Law

&#1300Policy Center

Enron Corp.

MayerHouston,Chicago,P.O.Patricia1400190

SouthBoxSmithBrownSharkeyILTX1188LaSalleStreet6060377251-1188&

Platt

Tony Shea

ABB EnergyVentures

202 Carnegie Center#100

Princeton, NJ 08540

Brad Sims

ENSR

27755 Diehl Road, #100

Warrenville, IL 60555

Brian Urbaszewski

American Lung Assoc. ofMetropolitan Chicago

1440 W. Washington

Chicago, IL 60607

Steven Whitworth

Ameren Services

1901 Chouteau

P.O. Box 66149, MC 602

St. Louis, MO 63166-6149

Sheldon Zabel

SchiffHardin & Waite

6600 Sears Tower

Chicago, IL 60608