ILLINOIS POLLUTION CONTROL BOARD

January 23, 2003

IN THE MATTER OF: )

)

PETITION OF CENTRAL ILLINOIS LIGHT ) R02-21

COMPANY (E.D. EDWARDS ) (Site-Specific

GENERATING STATION) FOR A ) Rulemaking – Air)

SITE-SPECIFIC AIR REGULATION: )

35 ILL. ADM. CODE 214.561 )

Proposed Rule. First Notice.

OPINION AND ORDER OF THE BOARD (by T.E. Johnson):

This matter comes before the Board upon a proposal for site-specific rulemaking filed by

Central Illinois Light Company (E.D. Edwards Generating Station) (CILCO) pursuant to Section

27 of the Illinois Environmental Protection Act (Act). 415 ILCS 5/27 (2000). CILCO operates

the E.D. Edwards Generating Station (facility) located near Peoria in Peoria County.

Specifically, CILCO requests a site-specific sulfur dioxide emissions limit Boiler #2 at its

facility. A hearing in this matter was held on October 11, 2002.

By today’s action the Board adopts the proposed amendments for the purpose of first

notice, pursuant to the Illinois Administrative Procedure Act (5 ILCS 100/1-1). The proposal

will be published in the Illinois Register whereupon a 45-day public comment period will begin

during which interested persons may file additional public comments with the Board.

BACKGROUND

CILCO’s facility consists of three coal-fired boilers. Boilers 1 and 3 are subject to a

sulfur dioxide (SO2) emissions limit of 6.6 pounds per million British thermal units (lb/mmBtu)

under a site-specific rule at 35 Ill. Adm. Code 214.561. Boiler 2 is subject to a SO2 emissions

limit of 1.8 lb/mmBtu under 35 Ill. Adm. Code 214.141. CILCO received a variance from 35 Ill.

Adm. Code 214.141 in a Board order issued on April 15, 1999.

See

Central Illinois Light

Company v. IEPA, PCB 99-80 (Apr. 15, 1999). Under the conditions of the variance, CILCO

was granted an average station-wide SO2 emission limit of 4.71 lbs/mmBtu over all three boilers

with a maximum SO2 limit of 6.6 lbs/mmBtu for each boiler. The variance further provides that

boiler 2 is not required to meet the 1.8 lb/mmBtu SO2 limit, and is effective through July 31,

2003.

CILCO seeks to make permanent the relief it was granted in PCB 99-80 by amending 35

Ill. Adm. Code 214.561 with respect to the requirements for the operation of Boiler 2. CILCO

requests that the Board repeal the text of 35 Ill. Adm. Code 214.561 and replace it verbatim with

text from the variance order of April 15, 1999.

See

CILCO, PCB 99-80 slip op. at 8-9. The

Board has previously incorporated by reference the record of PCB 99-80.

Specifically, CILCO requests that Section 214.561 read as follows:

Sulfur dioxide emissions from Boiler Nos. 1, 2, and 3 at the Edwards Station may not

exceed the limits listed below. CILCO must determine compliance with these limits on a

daily basis using the sulfur dioxide methodology of the Phase II Acid Rain Program set

forth in 40 C.F.R. Part 75.

a. The average sulfur dioxide emissions from Boiler Nos. 1, 2,and 3, as a

group may not exceed 4.71 pounds per million British thermal units

(lb/mmBtu) of actual heat input;

b. The average sulfur dioxide emissions from any one boiler may not exceed

6.6 lb/mmBtu of actual heat input; and

c. Sulfur dioxide emissions for all three boilers, as a group, may not exceed

34,613 pounds per hour, on a 24-hour average basis.

PRELIMINARY MATTERS

On November 8, 2002, CILCO filed a motion for leave to file a comment

instanter

accompanied by the comment by Sandy Isbell. In the motion, CILCO represents that it did not

receive the transcript from the hearing in order to timely file its written comment, and that the

Illinois Environmental Protection Agency (Agency) had no objection to the late filing.

The motion for leave to file the comment

instanter

is granted, and the comment of Sandy

Isbell is accepted.

HEARING

A hearing in this matter was held on October 11, 2002, at 202 N.E. Madison in Peoria.

Both CILCO and the Agency appeared and participated. No members of the public attended the

hearing. At the hearing, Mark Davis and Sandy Isbell submitted written and oral testimony for

CILCO. Robert J. Kaleel presented written and oral testimony for the Agency. The

aforementioned comment by Sandy Isbell, was the only public comment received.

CILCO Testimony

Sandy Isbell

Isbell is responsible for fuel analysis and safety at the facility. Isbell at 2.

Her primary

responsibilities are to procure all energy-producing fuels (excluding natural gas) and the

The written testimony of Sandy Isbell will be cited as “Isbell at __.”; the written testimony of

Mark Davis will be cited as “Davis at __.”; the written testimony of Robert Kaleel will be cited

as “Kaleel at __.”; the transcript will be cited as “Tr. at __.”

transportation of these fuels for the facility.

. She has worked in the fuels area for over 17

years.

Isbell testified that CILCO’s fuel costs have been significantly lower as a result of the

variance relief, and will continue to be significantly lower if permanent relief is granted. Isbell at

2. Isbell testified that, based on actual coal prices CILCO has negotiated in the past, the actual

cost savings will be between $1,298,111 and $3 million. Isbell at 8. She testified that having

relief on boiler number 2 allows CILCO to utilize their lowest cost coal. Tr. at 20.

Mark Davis

Davis is employed by CILCO, and is responsible for environmental science and

compliance at the facility. Davis at 1. He testified that boilers 1 and 3 have historically been

subject to a SO2 emission limit of 6.6 lb/mmBtu pursuant to 35 Ill. Adm. Code 214.561, and that

boiler 2 has been subject to a SO2 emission limit of 1.8 lb/mmBtu pursuant to 35 Ill. Adm. Code

214.141. Davis at 2. He testified that emissions from all three boilers collectively are subject to

an overall plant-wide SO2 emission limit of 34,613 lbs/hr established to ensure protection of the

National Ambient Air Quality Standards (NAAQS) for SO2 under 35 Ill. Adm. Code 214.561.

Davis testified that the 1.8 lb/mmBtu limit on SO2 emissions from boiler 2 put CILCO at

a competitive disadvantage, and that without permanent relief, CILCO will once again be at a

competitive disadvantage. Davis at 4. Davis testified that the purpose of the variance relief was

to provide CILCO with operational flexibility, and did not result in any significant adverse

effects on air quality. Davis at 5. He testified that there was no increase in allowable SO2

emissions from the facility as a result of the variance, and that SO2 emissions actually decreased

by approximately 20 percent.

. Further, he testified that under the proposed site-specific

rulemaking, the 34,613 lbs/hr plant-wide limit remains unchanged.

Davis testified that he has reviewed the potentially applicable federal regulations and

provisions of the Clean Air Act and has determined that the requested relief, the use of higher

sulfur coal in boiler 2, would not be inconsistent with any federal law or regulation. Davis at 8.

He testified that compliance through the installation of desulfurization equipment such as a

scrubber would exceed 40 million dollars, and would be economically infeasible. Tr. at 25. He

testified that it would also be technically infeasible due to space limitations at the facility. Tr. at

25.

Agency Testimony

At hearing, the Agency recommended that the Board adopt CILCO’s proposal. Tr. at 15.

Kaleel is the manager of the Air Quality Modeling Unit in the Division of Air Pollution Control,

Bureau of Air at the Agency. Kaleel at 1. He is responsible for overseeing the development of

dispersion modeling analyses to support various regulatory proposals, and has supervised the

Agency’s review of the technical information submitted in support of CILCO’s proposal.

Kaleel testified that the facility is also subject to a plant-wide SO2 emissions limit of

34,613 lb/hr, and that CILCO will continue to comply with the emissions limit so the proposed

rule change will not result in an increase in plant-wide emissions. Kaleel at 2. Kaleel testified

that the Agency has concluded that the air quality demonstration provided by CILCO in support

of the original variance request is still adequate to demonstrate that the air quality standards for

SO2 will not be exceeded as a result of the proposed emissions change at the facility. Kaleel at

3-4.

Kaleel testified that there have been no violations of the SO2 NAAQA in the Peoria area

in more than 20 years. Kaleel at 4. He concluded by testifying that the Agency agrees the

proposed site-specific rule change is appropriated.

DISCUSSION

The Board may adopt regulations specific to individual persons or sites. In promulgating

regulations under the Act, the Board shall take into consideration the physical conditions and

character of the surrounding areas, the nature of existing air quality as well as the technical

feasibility and economic reasonableness of reducing the pollution.

See

415 ILCS 5/27 (2000).

Both CILCO and the Agency testified that no violations of the SO2 NAAQA in the Peoria

area have occurred in over 20 years, and that CILCO’s facility will remain subject to the same

plant-wide emissions limit it currently must meet if the Board adopts the proposal. CILCO has

testified that compliance with the existing standard would not be technically feasible or

economically reasonable, and that the proposal is consistent with federal regulations.

The Board finds that CILCO has presented information indicating that its compliance

with 35 Ill. Adm. Code 214.141 for boiler 2 is not economically reasonable or technically

feasible. In addition, CILCO

has presented evidence regarding the nature of existing air quality

and consistency with federal regulations. Therefore, the Board will proceed with the language

for a site-specific rule proposed by CILCO.

CONCLUSION

Based on the record developed to date in this matter, the Board finds that adoption of

CILCO’s proposed site-specific rule for the purposes of first notice is warranted.

ORDER

The Board directs the Clerk to cause the filing of the following with the Secretary of

State for first-notice publication in the

Illinois Register

TITLE 35: ENVIRONMENTAL PROTECTION

SUBTITLE B: AIR POLLUTION

CHAPTER I: POLLUTION CONTROL BOARD

SUBCHAPTER c: EMISSION STANDARDS AND LIMITATIONS

FOR STATIONARY SOURCES

PART 214

SULFUR LIMITATIONS

SUBPART A: GENERAL PROVISIONS

Section

214.100 Scope and Organization

214.101 Measurement Methods

214.102 Abbreviations and Units

214.103 Definitions

214.104 Incorporations by Reference

SUBPART B: NEW FUEL COMBUSTION EMISSION SOURCES

Section

214.120 Scope

214.121 Large Sources

214.122 Small Sources

SUBPART C: EXISTING SOLID FUEL COMBUSTION EMISSION SOURCES

Section

214.140 Scope

214.141 Sources Located in Metropolitan Areas

214.142 Small Sources Located Outside Metropolitan Areas

214.143 Large Sources Located Outside Metropolitan Areas

SUBPART D: EXISTING LIQUID OR MIXED FUEL COMBUSTION EMISSION SOURCES

Section

214.161 Liquid Fuel Burned Exclusively

214.162 Combination of Fuels

SUBPART E: AGGREGATION OF SOURCES OUTSIDE METROPOLITAN AREAS

Section

214.181 Dispersion Enhancement Techniques

214.182 Prohibition

214.183 General Formula

214.184 Special Formula

214.185 Alternative Emission Rate

214.186 New Operating Permits

SUBPART F: ALTERNATIVE STANDARDS FOR SOURCES INSIDE METROPOLITAN

AREAS

Section

214.201 Alternative Standards for Sources in Metropolitan Areas

214.202 Dispersion Enhancement Techniques

SUBPART K: PROCESS EMISSION SOURCES

Section

214.300 Scope

214.301 General Limitation

214.302 Exception for Air Pollution Control Equipment

214.303 Use of Sulfuric Acid

214.304 Fuel Burning Process Emission Source

SUBPART O: PETROLEUM REFINING, PETROCHEMICAL AND CHEMICAL

MANUFACTURING

Section

214.380 Scope

214.381 Sulfuric Acid Manufacturing

214.382 Petroleum and Petrochemical Processes

214.383 Chemical Manufacturing

214.384 Sulfate and Sulfite Manufacturing

SUBPART P: STONE, CLAY, GLASS AND CONCRETE PRODUCTS

Section

214.400 Scope

214.401 Glass Melting and Heat Treating

214.402 Lime Kilns

SUBPART Q: PRIMARY AND SECONDARY METAL MANUFACTURING

Section

214.420 Scope

214.421 Combination of Fuels at Steel Mills in Metropolitan Areas

214.422 Secondary Lead Smelting in Metropolitan Areas

214.423 Slab Reheat Furnaces in St. Louis Area

SUBPART V: ELECTRIC POWER PLANTS

Section

214.521 Winnetka Power Plant

SUBPART X: UTILITIES

Section

214.560 Scope

214.561 E. D. Edwards Electric Generating Station

214.562 Coffeen Generating Station

Appendix A Rule into Section Table

Appendix B Section into Rule Table

Appendix C Method used to Determine Average Actual Stack Height and Effective

Height of Effluent Release

Appendix D Past Compliance Dates

AUTHORITY: Implementing Section 10 and authorized by Section 27 of the Environmental

Protection Act (Ill. Rev. Stat. 1989, ch. 111 1/2, pars. 1010 and 1027)

SOURCE: Adopted as Chapter 2: Air Pollution, Rule 204: Sulfur Emission Standards and

Limitations, R71-23, 4 PCB 191, filed and effective April 14, 1972; amended in R74-2 and R75-

5, 32 PCB 295, at 3 Ill. Reg. 5, p. 777, effective February 3, 1979; amended in R74-2, R75-5, 38

PCB 129, at 4 Ill. Reg. 28, p. 417, effective June 26, 1980; amended in R78-17, 40 PCB 291, at 5

Ill. Reg. 1892, effective February 17, 1981; amended in R77-15, 44 PCB 267, at 6 Ill. Reg. 2146,

effective January 28, 1982; amended and renumbered in R80-22(A), at 7 Ill. Reg. 4219, effective

March 28, 1983; codified 7 Ill. Reg. 13597; amended in R80-22(B), at 8 Ill. Reg. 6172, effective

April 24, 1984; amended in R84-28, at 10 Ill. Reg. 9806, effective May 20, 1986; amended in

R86-31, at 12 Ill. Reg. 17387, effective October 14, 1988; amended in R86-30, at 12 Ill. Reg.

20778, effective December 5, 1988; amended in R87-31 at 15 Ill. Reg. 1017, effective January

15, 1991; amended in R02-21 at 27 Ill. Reg. ___________, effective __________.

Section 214.561 E. D. Edwards Electric Generating Station

Units 1 and 3 at the E. D. Edwards Electric Generating Station shall not exceed 6.6 pounds of

sulfur dioxide per mmBtu of actual heat input (2,838 nanograms per joule). Aggregate emissions

from the E. D. Edwards Electric Generating Station on a 24-hour average basis shall not exceed

34,613 pounds of sulfur dioxide per hour.

(Source: Added at 10 Ill. Reg. 9806, effective May 20, 1986)

Sulfur dioxide emissions from Boiler Nos. 1, 2, and 3 at the Edwards Station may not exceed the

limits listed below. CILCO must determine compliance with these limits on a daily basis using

the sulfur dioxide methodology of the Phase II Acid Rain Program set forth in 40 C.F.R. Part 75.

a The average sulfur dioxide emissions from Boiler Nos. 1, 2, and 3, as a group

may not exceed 4.71 pounds per million British thermal units (lb/mmBtu) of

actual heat input;

b The average sulfur dioxide emissions from any one boiler may not exceed 6.6

lb/mmBtu of actual heat input; and

c Sulfur dioxide emissions for all three boilers, as a group, may not exceed 34,613

pounds per hour, on a 24-hour average basis.

(Source: Amended at

, effective

)

IT IS SO ORDERED.

I, Dorothy M. Gunn, Clerk of the Illinois Pollution Control Board, certify that the Board

adopted the above opinion and order on January 23, 2003, by a vote of 5-0.

Dorothy M. Gunn, Clerk

Illinois Pollution Control Board