NOTICE OF HEARINGS

ILLINOIS POLLUTION CONTROL BOARD

February 6, 2003

IN THE MATTER OF:

PROPOSED AMENDMENTS TO

GENERAL PERMITTING PROVISIONS

FOR PORTABLE EMISSION UNITS

AMENDMENTS TO 35 ILL. ADM.CODE

201

)

R02-10

(Rulemaking - Air)

Adopted Rule. Final Order.

OPINION AND ORDER OF THE BOARD (by M.E. Tristano):

This matter comes before the Board on a proposal for rulemaking filed by the Illinois

Environmental Protection Agency (Agency) on November 30, 2001. The Agency proposed that

the Board amend its permitting rules for the control of air pollution section 201.142 and add

section 201.170 (35 Ill. Adm. Code 201.142). As these rules are not required by the Clean Air

Act, the Agency proposed the rules under the regular rulemaking provision of Section 27 of the

Environmental Protection Act (Act), rather than the fast track procedures of Section 28.5 (415

ILCS 5/27, 285).

The adopted rules exempt certain smaller emissions sources from the requirement for

owners and operators to obtain new construction permits that are currently required by Section

39 of the Act (415 ILCS 5/39 (2000)) each time the site of small emission units are changed.

On November 7, 2002, the Board proposed the rulemaking for second notice. The Board

directed that the rule be submitted to the Joint Committee on Administrative Rules (JCAR) for

second-notice review. On December 17, 2002, JCAR issued a certification of no objection to the

rule.

The Board today adopts this rule. The adopted rule is identical to the first and second

notice. The following opinion will explain the procedural history, proposal development,

proposal overview, and discuss economic considerations.

PROCEDURAL HISTORY

The Board has held two hearings in this matter. The first was held in Springfield, Illinois

on March 20, 2002, and the second in Chicago on April 9, 2002. At the first hearing two Agency

employees presented testimony in support of the proposal. Included was the testimony of Rachel

Doctors, Assistant Counsel and Mr. Harish B. Desai, Unit Manager of the State Operating Permit

Unit of the Permit Section of the Illinois Environmental Protection Agency.

At the second hearing the Agency offered additional testimony and additional questions

were asked by the Board.

Three exhibits were admitted at hearing: Exhibit 1. ERRATA Sheet by proponents;

Exhibit 2. testimony of Mr. Harish Desai; Exhibit; and 3. Addendum to the testimony of Mr.

Harish Desai.

There were no members of the public in attendance at the hearings. The Board received

no public comments regarding the proposed rule. Since first notice there have been no

comments.

PROPOSAL DEVELOPMENT

In 1997, Section 39 of the Act (415 ILCS 5/et. seq.) was amended to establish a

lifetime

permit program. Pursuant to P.A. 90-367, eff. June 17, 1998, the Board adopted revised rules

providing that emission sources not subject to Section 39.5 of the Act or required to have a

federally enforceable state operating permit (“FESOP”) shall have operating permits that are

required to be renewed only upon request by the Agency or if circumstances warrant a revised

permit. Amendments to General Permitting Provisions to Require Perpetual Permits for Certain

Sources: Amendment to 35 Illl. Adm. Code 201, R98-13 (June 17, 1998). Circumstances

requiring a revised operating permit or construction permit include change in ownership,

construction or modification of an emission unit at a source pursuant to Section 201.169(c).

“Construction” is defined as “commencement of on-site fabrication, erection or installation of an

emission source or of air pollution control equipment.” 35 Ill. Adm. Code 201.102.

The Agency has identified a subset of emission units that despite having a

lifetime

operating permit, are required to repeatedly apply and obtain new construction and

lifetime

operating permits solely because of a change in location of the emission unit or units. The

Agency believes that the new permit applications for portable emission units contain essentially

the same information as previously submitted only modifying the address to the new location or

site. The Agency has stated that there are approximately 500 emission units that could change

sites at least once annually without increasing their emissions or changing their operations. Stat.

of Reasons at 2. The Agency expects 15 to 20% of the eligible units will take advantage of this

rulemaking. The amendments are intended to cover rock crushers, concrete batch plants, debris

grinders, and portable generators as well as certain solvent recovery or tank cleaning operations.

Stat. of Reasons at 7.

Pursuant to Section 39 of the Act, the Agency has 90 days to take final action on a permit

application. This timeframe has caused problems for some owners or operators inhibiting them

from accepting a contract or completing a contractual activity within the dates specified. The

Agency suggests this is an unnecessary administrative burden on both parties. Stat. of Reasons

at 2-3.

The Agency proposal would exempt an owner or operator from the requirements to

obtain a new construction/operating permit for certain portable emission units solely based on

location change. This concept of issuing a single permit to an emission unit that may operate at

multiple sites is consistent with provisions for temporary sources under the Clean Air Act Permit

Program (CAAPP). Section 39.5(231) of the Act provides: The Agency may issue a single

permit authorizing emission from similar operations by the same source owner or operator at

multiple temporary locations, except for sources which are affected sources for acid deposition

under Title IV of the Clean Air Act. 415 ILCS 39.5(21)(a). Stat. of Reasons at 3.

PROPOSAL OVERVIEW

Section 201.142 – Construction Permit Required

Currently, this Section prohibits persons from constructing or modifying emission units

without first obtaining a construction permit from the Agency, unless the emission unit or units

is exempt pursuant to Section 210.146. When an owner or operator changes the site of an

emission unit or units, the owner or operator is required to obtain a new or revised permit. The

Agency is proposing to amend Section 201.142 to reference the proposed new Section 201.170

exempting portable emission units from this requirement under certain circumstances.

Section 201.170 – Portable Emission Units

The Agency is proposing to add Section 201.170 which specifies conditions under which

an owner/operator holding a lifetime permit for an emission unit may be exempted from

obtaining a new construction or operating permit each time the location of the unit or units is

changed or modified.

Section 201.170(a) outlines the criteria which must be met to be eligible for exemption

These criteria are:

1. Emissions from the unit(s) are temporary in nature, less than one year at any one

site;

2. Emission unit(s) are subject to the requirements of the “Lifetime Permit Program”

pursuant to Section 201.169;

3. Emission unit(s) must be permitted to emit less than 25 tons per year (TPY) of

any combination of regulated pollutants;

4. Emission unit(s) must be portable as demonstrated by being mounted on chassis

or skids designed to move; and

5. Emission unit(s) must not be used as a thermal desorption or incinerator system

pursuant to 35 Ill. Adm. Code 728. Table F.

Section 201.170(b) specifies conditions under which the owner or operator may change

the site of an emission unit without obtaining a new construction or operating permit pursuant to

Sections 201.142, 201.143, and 201.169. There are six conditions to qualify:

1. The owner/operator has obtained a

lifetime

construction/operating permit for the

emission unit or units or is exempt from that requirement;

2. All units contained in the

lifetime

permit must relocate as a group;

3. The owner/operator may not move the emission unit(s) to a site that has a source

subject to the CAAPP pursuant to Section 39.5 of the Act or that would become

subject to the CAAPP if the emissions from the portable emission unit(s) are

included;

4. The portable emissions unit(s) may not be modified in any way so as to make the

unit(s) subject to New Source Review pursuant to 35 Ill. Adm. Code 203 or to

Prevention of Significant Deterioration pursuant to Section 9.1(a) of the Act;

5. The owner or operator must formally notify the Agency prior to site relocation;

and

6. The owner or operator is required to have a copy of the permit on-site where the

portable emission unit(s) operate.

At the second hearing, the Agency offered an amendment to Section 201.170(b)(5) which

included a three day pre-relocation notification and clarifying language. Tr. 2 at 10-11. The

Agency rejected the usage of E-Mail and alternative private delivery services because of

processing concerns. Tr. 2 at 14-16.

Section 201.170(c) requires owners or operators of portable emission unit or units to

obtain new or amended construction and operating permits containing special conditions for

changing the site pursuant to Sections 201.142, 201.143, and 201.169 prior to the initial site

change. It, also, mandates a yearly relocation of said portable emission unit or units to remain

eligible for consideration under Section 201.170.

Another issue raised at hearing was whether the proposed rule should include a reference

to 35 Adm. Code, Section 201.144 for existing units constructed or modified prior to April 14,

1972. The Agency rejected the need to offer such a reference inclusion. The Agency’s rationale

was that the portable emissions unit or units subject to these proposed rule revisions would not

be subject to review under 35 Adm. Code, Section 201.144. Rather, the permit application

would be reviewed instead under 35 Adm. Code, Sections 201.142 and 201.143 for the

new

emission unit rules. The

existing

emission unit becomes subject to the “new” emission unit rules

by virtue of its change in location. Tr. 2 at 10-11.

ECONOMIC CONSIDERATIONS

At first notice, the Board found that the rule was economically reasonable and technically

feasible. The only economic evidence currently in the record is that adoption of the proposed

amendments would have a beneficial economic impact on both the Agency and owner/operators

of portable emission unit or units. The Agency estimated savings to the State of $150,000 per

year. Stat. of Reas. at 8. Owners and operators would still be required to pay a site fee of $100

for each location pursuant to Section 9.6(b) of the Environmental Protection Act. Prefiled

Testimony of Desai at 6. No estimate was given as to savings benefiting the owner or operator

due to more efficient permit processing for the portable emission units.

CONCLUSION

The Board today proposes for final notice amendments to the permitting rules for the

control of air pollution section 201.142 and add section 201.170.

ORDER

The Board directs the Clerk to file the following adopted rule with the Secretary of State

for publication in the

Illinois Register

for final notice and adoption in the Illinois Administrative

Code.

TITLE 35: ENVIRONMENTAL PROTECTION

SUBTITLE B: AIR POLLUTION

CHAPTER I: POLLUTION CONTROL BOARD

SUBCHAPTER a: PERMITS AND GENERAL PROVISIONS

PART 201

PERMITS AND GENERAL PROVISIONS

SUBPART A: DEFINITIONS

Section

201.101 Other Definitions

201.102 Definitions

201.103 Abbreviations and Units

201.104 Incorporations by Reference

SUBPART B: GENERAL PROVISIONS

Section

201.121 Existence of Permit No Defense

201.122 Proof of Emissions

201.123 Burden of Persuasion Regarding Exceptions

201.124 Annual Report

201.125 Severability

201.126 Repealer

SUBPART C: PROHIBITIONS

Section

201.141 Prohibition of Air Pollution

201.142 Construction Permit Required

201.143 Operating Permits for New Sources

201.144 Operating Permits for Existing Sources

201.146 Exemptions from State Permit Requirements

201.147 Former Permits

201.148 Operation Without Compliance Program and Project Completion Schedule

201.149 Operation During Malfunction, Breakdown or Startups

201.150 Circumvention

201.151 Design of Effluent Exhaust Systems

SUBPART D: PERMIT APPLICATIONS AND REVIEW PROCESS

Section

201.152 Contents of Application for Construction Permit

201.153 Incomplete Applications (Repealed)

201.154 Signatures (Repealed)

201.155 Standards for Issuance (Repealed)

201.156 Conditions

201.157 Contents of Application for Operating Permit

201.158 Incomplete Applications

201.159 Signatures

201.160 Standards for Issuance

201.161 Conditions

201.162 Duration

201.163 Joint Construction and Operating Permits

201.164 Design Criteria

201.165 Hearings

201.166 Revocation

201.167 Revisions to Permits

201.168 Appeals from Conditions

201.169 Special Provisions for Certain Operating Permits

201.170 Portable Emission Units

SUBPART E: SPECIAL PROVISIONS FOR OPERATING PERMITS FOR CERTAIN

SMALLER SOURCES

Section

201.180 Applicability (Repealed)

201.181 Expiration and Renewal (Repealed)

201.187 Requirement for a Revised Permit (Repealed)

SUBPART F: CAAPP PERMITS

Section

201.207 Applicability

201.208 Supplemental Information

201.209 Emissions of Hazardous Air Pollutants

201.210 Categories of Insignificant Activities or Emission Levels

201.211 Application for Classification as an Insignificant Activity

201.212 Revisions to Lists of Insignificant Activities or Emission Levels

SUBPART G: EXPERIMENTAL PERMITS

(Reserved)

SUBPART H: COMPLIANCE PROGRAMS AND PROJECT COMPLETION SCHEDULES

Section

201.241 Contents of Compliance Program

201.242 Contents of Project Completion Schedule

201.243 Standards for Approval

201.244 Revisions

201.245 Effects of Approval

201.246 Records and Reports

201.247 Submission and Approval Dates

SUBPART I: MALFUNCTIONS, BREAKDOWNS OR STARTUPS

Section

201.261 Contents of Request for Permission to Operate During a Malfunction, Breakdown

or Startup

201.262 Standards for Granting Permission to Operate During a Malfunction, Breakdown

or Startup

201.263 Records and Reports

201.264 Continued Operation or Startup Prior to Granting of Operating Permit

201.265 Effect of Granting of Permission to Operate During a Malfunction, Breakdown or

Startup

SUBPART J: MONITORING AND TESTING

Section

201.281 Permit Monitoring Equipment Requirements

201.282 Testing

201.283 Records and Reports

SUBPART K: RECORDS AND REPORTS

Section

201.301 Records

201.302 Reports

SUBPART L: CONTINUOUS MONITORING

Section

201.401 Continuous Monitoring Requirements

201.402 Alternative Monitoring

201.403 Exempt Sources

201.404 Monitoring System Malfunction

201.405 Excess Emission Reporting

201.406 Data Reduction

201.407 Retention of Information

201.408 Compliance Schedules

Appendix A Rule into Section Table

Appendix B Section into Rule Table

Appendix C Past Compliance Dates

AUTHORITY: Implementing Sections 10, 39, and 39.5 and authorized by Section 27 of the

Environmental Protection Act [415 ILCS 5/10, 27, 39, and 39.5].

SOURCE: Adopted as Chapter 2: Air Pollution, Part I: General Provisions, in R71-23, 4 PCB

191, filed and effective April 14, 1972; amended in R78-3 and 4, 35 PCB 75 and 243, at 3 Ill.

Reg.30, p. 124, effective July 28, 1979; amended in R80-5, at 7 Ill. Reg. 1244, effective January

21, 1983; codified at 7 Ill. Reg. 13579; amended in R82-1 (Docket A) at 10 Ill. Reg. 12628,

effective July 7, 1986; amended in R87-38 at 13 Ill. Reg. 2066, effective February 3, 1989;

amended in R89-7(A) at 13 Ill. Reg. 19444, effective December 5, 1989; amended in R89-7(B)

at 15 Ill. Reg. 17710, effective November 26, 1991; amended in R93-11 at 17 Ill. Reg. 21483,

effective December 7, 1993; amended in R94-12 at 18 Ill. Reg. 15002, effective September 21,

1994; amended in R94-14 at 18 Ill. Reg. 15760, effective October 17, 1994; amended in R96-17

at 21 Ill. Reg. 7878, effective June 17, 1997; amended in R98-13 at 22 Ill. Reg. 11451, effective

June 23, 1998; amended in R98-28 at 22 Ill. Reg. 11823, effective July 31, 1998; amended in

R02 -10, at 27 Ill. Reg_______, effective ___________.

SUBPART C: PROHIBITIONS

Section 201.142 Construction Permit Required

No person shall cause or allow the construction of any new emission source or any new air

pollution control equipment, or cause or allow the modification of any existing emission source

or air pollution control equipment, without first obtaining a construction permit from the

Agency, except as provided in Sections 201.146 or Section 201.170(b) of this Part.

(Source: Amended at 27 Ill. Reg. __________, effective ______________________)

SUBPART D: PERMIT APPLICATIONS AND REVIEW PROCESS

Section 201.170 Portable Emission Units

a) An emission unit is portable provided that the emission unit meets the following

criteria.

1) Emissions from the emission unit are expected to occur for less than one

year at any one site.

2) The emission unit of air pollution is subject to the requirements of Section

201.169 of this Subpart.

3) The emission unit or group of emission units that will be changing sites is

permitted to emit less than 25 tons per year of any combination of

regulated air pollutants.

4) The emission unit is mounted on a chassis or skids and is designed to be

moveable.

5) The emission unit is not used as a thermal desorption system pursuant to

35 Ill. Adm. Code 728.Table F or as an incinerator system.

b) An owner or operator of a portable emission unit meeting the requirements of

subsection (a) of this Section may change the site of the unit without obtaining a

new construction or operating permit pursuant to Section 201.142, 201.143, or

201.169 of this Part, provided that the owner or operator meets the following

requirements:

1) The owner or operator has obtained a construction and operating permit

containing special conditions as required by subsection (c) of this Section

for the emission unit, or is exempt pursuant to subsection (d) of this

Section.

2) If a permit issued pursuant to subsection (c) of this Section includes more

than one emission unit, the owner or operator shall move all emission

units covered by the permit to the new site.

3) The owner or operator does not locate the emission unit on a site with a

source:

A) That is subject to the requirements of Section 39.5 of the Act; or

B) That would become subject to the requirements of Section 39.5 of

the Act if the emissions of all regulated pollutants from the

portable emission unit were included in such source’s potential to

emit.

4) The owner or operator does not modify the operation of the emission unit

in such a way so as to:

A) Make the emission unit subject to New Source Review (NSR)

requirements pursuant to 35 Ill. Adm. Code 203 or to Prevention of

Significant Deterioration (PSD) pursuant to Section 9.1(a) of the

Act; or

B) Make the emission unit a support facility of a source that is subject

to Section 39.5 of the Act.

5) At least three days prior to moving the emission unit to a new site, the

owner or operator shall notify the Agency by certified mail. The

notification shall include the items listed below in this subsection (b)(5),

unless the emission unit is exempt pursuant to subsection (d) of this

Section:

A) The location of the new site;

B) The estimated emissions of all regulated air pollutants while

located at the new site; and

C) That the operation for the emission unit will be consistent with its

construction and operating permits.

6) The owner or operator shall keep a copy of the construction and operating

permits for that emission unit on the site where the emission unit are in

operation.

c) Permit Requirements.

1) The owner or operator of an emission unit must obtain a new or amended

construction and operating permit containing special conditions for

changing the site of the portable emission unit pursuant to the

requirements of Sections 201.142, 201.143 and 201.169 of this Subpart

prior to an initial change in site of an emission unit. The permit

application, in addition to the information required pursuant to Section

201.152, 201.157 and 201.169 of this Part, must contain the following

information:

A) The initial site of the emission unit;

B) A permanent address where correspondence may be sent to the

owner or operator; and

C) The permanent site of any required operating records.

2) If the portable emission unit has a permit pursuant to this subsection (c),

but has not changed sites within the prior twelve months at least once, the

owner or operator shall obtain a revised permit prior to changing the site

of the emission unit.

d) The owner or operator of a portable emission unit that is included in more than

one operating permit and meets the requirements of subsections (a)(2) through

(a)(5), (b)(3), (b)(4) and (b)(6) of this Section may change the site of the unit

without obtaining a new construction or operating permit pursuant to Section

201.142, 201.143 or 201.169 of this Part when the unit is moved to a site covered

by such permit.

(Source: Added at 27 Ill. Reg. __________, 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 February 6, 2003, by a vote of 7-0.

Dorothy M. Gunn, Clerk

Illinois Pollution Control Board