Summary of Informational Order
I
LLINOIS
P
OLLUTION
C
ONTROL
B
OARD
December 21, 2000
Contact: Connie Newman
312-814-3620
217-782-7630
TDD: 312-814-6032
FAX: 217-524-8508
ILLINOIS POLLUTION CONTROL BOARD ADOPTS INFORMATIONAL ORDER ON
PEAKER PLANTS DOCKET NO. R01-10
In response to a request from Governor George H. Ryan, the Illinois Pollution Control
Board (Board) today adopted an Informational Order on natural gas-fired, peak-load electrical
power generating facilities (peaker plants). Peaker plants generate electricity during periods of
peak electricity demand. The recent proliferation of peaker plants has been a source of much
public controversy in the Chicago metropolitan area.
The Informational Order follows seven days of public inquiry hearings across the State
(August 23 and 24 in Chicago; September 7 in Naperville; September 14 in Joliet; September 21
in Grayslake; and October 5 and 6 in Springfield). Over 80 persons testified at these public
hearings, including individual citizens, representatives of citizen groups, representatives of State
and local government, and representatives of industry. The hearing transcripts comprise nearly
1,300 pages of testimony. The Board also received 195 written public comments. The
transcripts and public comments are available on the Board’s Web site at www.ipcb.state.il.us
.
The Board was created by the Illinois Environmental Protection Act (Act) to "determine,
define and implement the environmental control standards applicable in the State of Illinois." In
addition to the Board’s duty to promulgate environmental regulations and to decide contested
environmental cases, the Board is authorized to conduct such other noncontested or
informational hearings as may be necessary to accomplish the purposes of the Act. Specifically,
the Board can conduct inquiry hearings to gather information on any subject the Board is
authorized to regulate.
Citing public concern over the recent proliferation of peaker plants in Illinois, Governor
Ryan, in a July 6, 2000 letter, asked Board Chairman Claire A. Manning to undertake Board
inquiry proceedings. The Governor’s letter specifically asked that the Board hold public hearings
to address the following issues and to make recommendations on whether further regulation or
legislation is necessary to safeguard Illinois’ environment:
2
1.
Do peaker plants need to be regulated more strictly than Illinois’ current air quality
statutes and regulations provide?
2.
Do peaker plants pose a unique threat, or a greater threat than other types of State-
regulated facilities, with respect to air pollution, noise pollution, or groundwater or
surface water pollution?
3.
Should new or expanding peaker plants be subject to siting requirements beyond
applicable local zoning requirements?
4.
If the Board determines that peaker plants should be more strictly regulated or
restricted, should additional regulations or restrictions apply to currently permitted
facilities or only to new facilities and expansions?
5. How do other states regulate or restrict peaker plants?
In its Informational Order, the Board provides specific answers to each of the Governor’s
questions and makes recommendations. Copies of the Informational Order will be available to
the public on Friday, December 22. The Board is also preparing a companion report that it
expects to release sometime in January. This report will summarize all of the information
received by the Board in these proceedings. The Informational Order and companion report,
when released, will be posted on the Board’s Web site at www.ipcb.state.il.us. Copies may be
obtained by calling the Board’s Chicago office at (312) 814-3620 or its Springfield office at
(217) 524-8500.
In its Informational Order, the Board recommends that the State tighten current
environmental regulations concerning peaker plants to ensure the protection of the environment.
In the area of air emissions, the Informational Order notes that peaker plants burn natural
gas, which is a relatively clean fuel from an environmental perspective. While peaker plants emit
various pollutants into the air, nitrogen oxides (NO
x
) are of particular concern because they are
ozone precursors. In Illinois, a facility that emits less than 250 tons per year (TPY) is considered
a "minor" source under current State and federal environmental regulations. Many of the
proposed peaker plants are being permitted to allow for emissions just under this threshold and
are intended to emit much less than that. Due to their "peaking" nature, however, the Board finds
that these plants are unique. They can emit most if not all of their permitted annual amount of air
emissions during a concentrated period of time. This time period is generally the summer
months when the ozone risk is highest.
In its Informational Order, the Board recommends that the Illinois Environmental
Protection Agency (IEPA) and the Board engage in rulemaking under the Act to consider
requiring these plants to use the "Best Available Control Technology" (BACT) in controlling
their air emissions. BACT is a federally-derived regulatory methodology intended to determine
the maximum degree to which air emissions can be reduced in light of energy, environmental,
and economic impacts. Generally in Illinois, BACT only applies to "major" sources, which are
those that emit 250 TPY or more.
3
Also regarding air regulations, the Board recommends codifying two practices that IEPA
Director Tom Skinner administratively implemented to respond to public concern over the
proliferation of peaker plants: dispersion modeling and public hearings for all proposed peaker
plant construction permits.
Dispersion modeling is intended to ensure that peaker plant air emissions do not cause or
contribute to a violation of the National Ambient Air Quality Standards (NAAQS). While not
required for minor sources, IEPA has recently been requesting this modeling information from
peaker plant developers during the permit process. The modeling should use conservative
parameters to determine the worst-case impact, including any cumulative impact due to the
clustering of peaker plants.
On the question of noise, the Board finds that Illinois’ current noise regulations are
adequate to address most concerns and that citizen’s enforcement actions before the Board are
available to enforce noise standards. Nonetheless, the Board recognizes that a "gap" exists in
current Illinois noise regulation. While the State noise standards are strict, IEPA does not
currently have a program in place to ensure at the time of air permitting that facilities will meet
those noise standards. The Board recommends remedying that problem.
Finally, on the question of whether peaker plants should be subject to siting requirements
beyond local zoning, the Board stops short of making any specific recommendation on siting.
Instead, the Board provides the Governor with an informed discussion of the concerns raised and
potential solutions.
In announcing the Board’s Informational Order, Board Chairman Claire A. Manning
stated: "The Board very much appreciates the valuable and insightful public participation in
these proceedings from all interested persons, businesses, and associations. The huge record that
was created has allowed the Board to address the threshold issues presented to us by the
Governor and by the participants. We have been able to make several valuable recommendations
to enhance the regulations that apply to these plants—and to further safeguard Illinois’
environment. We commend Governor Ryan for the leadership he has shown on these issues and
thank him for the opportunity to have served him and the citizens of the State of Illinois on these
important questions."
The Board is an independent State board comprised of seven technically qualified
individuals, all of whom are appointed by the Governor with the advice and consent of the
Senate. For more information about the Board and its members, please visit the Board’s Web
site at www.ipcb.state.il.us
.
