RECEIVED

FRK’S

OFFICE

JUN

052000

~STATEOF tLUNOIS

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P.O.

Box

186

St.

Anne,

Illinois

60964-0186

Telephone:

(815) 427-6644

Fax No.:

(815) 427-6573

June 2, 2000

(V ~

Clerk’s Office

Illinois Pollution

Control Board

100W. Randolph Street, Suite 11-500

Chicago, IL

60601

RE:

Comments Docket ROO-20; 35

Iii. Adm. Code

125,

Tax

Certifications

On behalfofthe Illinois Fertilizer & Chemical Association (IFCA) please accept the following

comments on the Illinois Pollution Control Board’s proposed rulemaking, Docket R00-20,

related to tax certifications for pollution control facilities,

Ill. Adm. Code Part 125.

appreciate the Board’s consideration ofthese comments at this late date; we only recently

became aware ofthis proposed rulemaking and its potential impact on our membership.

IFCA’s membership consists ofowners, managers and employees ofretail agrichemical facilities

located in Illinois, as well asrepresentatives ofpesticide, fertilizer and agricultural equipment

manufacturers.

The majority ofIFCA’s

1000+ members are directly responsible for serving the

needs ofIllinois’ agricultural producers.

IFCA is committed to developing and helping

implement programs that upgrade and enhance the safe handling and efficient use ofagricultural

chemicals and commercial

fertilizers.

Many agrichemical retailers in Illinois have taken advantage ofthe tax certification process for

pollution control facilities.

Since the late

1980’s, agrichemical facilities have been required to

install and maintain sophisticated secondary containment structures for the containment of bulk

pestic1des and fertilizer, as well as concrete load-cit areas for themixing, loading and transferof

these products into application equipment.

In addition to concrete dikes and load-out areas,

many facilities have also constructed steel buildings over their pesticide and fertilizer storage

areas to reduce any potential for product run-offfrom precipitation and to

also further protect the

storage tanks, bins and their contents from wind and storm damage.

Agrichemical facilities are subject to product storage, handling and containment regulations

promulgated under Title 8, Part 255 ofthe Illinois Administrative Code.

The Illinois

Department

ofAgriculture administers this program and requires regislration ofall commercial and non-

commercial bulk agrichemical facilities.

In addition, IDA requires these facilities to obtain a

permit prior to construction ofthe containment devices.

The Illinois EPA, through a

memorandum of understanding with IDA, also reviews and approves the permits for these

facilities.

Ifthe facility makes any modifications to their containment structures, they must

update their permit with IDA; all permits must be renewed every five years.

IFCA

R0O-20

Page 2

These facilities are also subject to annual inspection by IDA personnel to ensure compliance with

these regulations.

In workingwith IEPA on the tax certification approval process, agrichemical

facilities have been able to obtain pollution control facility tax

certification status for their

containment structures including concrete dikes and operational areas for the storage, mixing and

loading ofpesticides and fertilizers as well as rinsate collection devices and the building over the

pesticide storage and load-out area.

However, IEPA has chosen to deny certification for the

building over the dry fertilizer storage and load-out area.

IFCA disagrees with IEPA’s decisionto deny certification for the dry fertilizer buildings as

pollution control facilities.

We support this proposed rule, which will transfer this certification

program to the IPCB as part ofits procedural rules.

We have found the Board to be fair and

equitable in its review ofenvironmental regulations and believe that the tax certification

applications should be reviewed and decided upon by the Board.

While we also have great

respect for the IEPA and its past handling ofthis program, we feel that in the case ofdry

fertilizer buildings, we have reached an impasse with the Agency regarding their interpretation

that these buildings are not pollution control facilities.

There is both logical and legal reasoning behind ourrequest that dry fertilizer buildings be

granted tax certification status.

These buildings are constructed and maintained in accordance

with a permit that is reviewed and grantedby the IDA.

The purpose ofthese buildings is to

substantially reducethe potential for environmental contamination by protecting dry fertilizer

from wind, precipitationand potential run-off.

Obviously, dry fertilizer that is exposed to rain

and wind on a daily basis can potentially contaminate the surrounding air, soil and water.

By protecting the product with a building, it virtually eliminates the possibility of environmental

contamination from the fertilizer storage area.

The Property Tax Code defines “pollution control facilities” as:

Anysystem, method,

construction, device or appliance appurtenant thereto, or any portion of

any building or equipment,

that is designed, constructed, installed or operatedfor theprimary

purpose of(a) eliminating, preventing,

or reducingair orwater pollution as the terms “air” and

“waterpollution” are defined in the Environmental Protection Act (35 ILCS 200/11-10).

Considering this definition,

IFCA believes that the dry fertilizer building qualifies absolutely as a

pollution control facility.

Inthe past, many dry fertilizer facilities did not have buildings over

their fertilizer bins.

But over the years, improvedtechnology along with enhanced understanding

and concern for our environment has given our industry a great appreciation for product

containment.

The concrete loading areas allow us to capture, recoverand utilize any spilled

product

The building over the fertilizer protects the product from precipitationand wind,

ensuring that no leaching or blowing of the dry fertilizer away from thebuilding occurs.

From

ourperspective, we have difficulty understandinghow IEPA can deny tax certification status for

these structures, especially when they are approved and permitted by IDA—with joint review

and approval by the Agency.

Interestingly, IEPA has consistently approved tax certification status for the buildings over

pesticide storage and load-out areas.

The purpose ofthese buildings is the same as for fertilizer:

to protect the product from the elements and prevent any loss ofproductto the surrounding

environment.

We simply ask that the same consideration be given to fertilizer buildings.

It just

makes sense.

IFCA

R00-20

Page

There is also strong

legal precedent to grant tax certification status for fertilizer buildings.

In reviewing a recent tax certification appeal (Cass County Service Company vs. IEPA,

PCB 99-31) pertaining to buildings over petroleum load-out areas, the PCB disagreed with the

Agency’s decision to deny taxcertification status for these steel buildings.

Upon reviewing the

information presented, the board determinedthat the steel building was designedand constructed

for the primary purpose ofpreventing or reducing water pollution, and the Board certified that

the steel building is a “pollution control facility” under the Property Tax Code.

Dry fertilizer buildings serve the same general purpose as buildings over petroleum loading

areas.

Theirprimary purpose is to protect the environment by preventing or reducing water and

air pollution.

We therefore respectfully askthe Board, in adopting these procedural rules for tax

certifications, to grant pollution control facility status to agrichemical facilities that apply for this

tax certification status fortheir containment structures, including their fertilizer buildings.

feelthis action by the Board would be consistent with thedecision in Cass County Service

Company appeal.

The same reasoning applies to protecting the environment from fertilizer

contaminationjust as does forprotectingthe environment from petroleum contamination.

IFCA supports adoption ofthis proposed rule, which will transfer the tax certification program

from IEPA to the IPCB.

We appreciate the Board’s consideration ofour request to include

fertilizer buildings in thetax certification program.

Ifyou require additional information on this

issueor have any questions, please contactme at(309) 828-1041.

Thank you.

Kind regards,

The Illinois Fertilizer & Chemical Association

Jean Trobec

Government Relations Director

cc:

Lloyd Burling