ILLINOIS POLLUTION CONTROL
    BOARD
    January
    6, 1972
    MT.
    CARMEL
    PUBLIC
    UTILITY CO.
    PCB 71—15R
    V
    ENVIRONMENTAL
    PROTECTION AGENCY
    SUPPLEMENTAL
    ORDER
    AND
    OPINION
    (BY
    MR.
    LAWTON):
    On
    November
    11,
    1971,
    the
    Board
    entered
    an
    Order
    granting
    Mt
    Carmel
    Public
    Utility
    Co.
    a
    variance
    for
    a
    one-year
    period
    allowing
    it
    to
    emit
    particulates
    in
    excess
    of
    the
    particulate
    emission
    regulations
    and
    Section
    9(a)
    of
    the
    Environmental
    Pro~
    tection Act, subject to the following terms
    and conditions:
    “1~ This
    variance shall continue
    for
    a period of one year
    from this
    date,
    if
    the
    Utility wants
    a continuance
    of this variance
    it
    shall file
    a petition for renewal
    of the variance within ninety
    (90)
    days prior to the
    date the variance expires.
    The Board may authorize
    a
    hearing on that supplemental petition and shall make
    such further order
    as
    it deems necessary
    at that time.
    2.
    The Utility shall proceed with
    the following program:
    (a)
    The Utility shall complete the conversion
    of
    Boiler
    #5 from a coal-fired boiler
    to
    a boiler
    fired
    by
    oil
    and
    natural
    gas
    by
    March
    30,
    1973;
    (b)
    The Utility shall complete the
    69 KV
    line from
    Mt. Carmel
    to Keensburg by January,
    1973;
    (c)
    The Utility shall
    exert every effort to complete
    the
    138 1W line
    from Keensburg
    to Albion before
    June,
    1974.
    In that respect,
    the Utility shall
    file
    quarterly
    reports with the Board and the
    Agency,
    beginning on December
    1,
    1971, which re-
    ports shall detail the efforts made by the Utility
    to expedite the completion of the 138
    1W
    line
    herein described;
    and
    (d)
    The Utility shall not operate Boilers
    #1 and
    #4
    in violation
    of the particulate regulations
    after the installation of the
    138 XV
    line referred.
    to in paragraph
    4,
    or June
    30,
    1974,
    whichever
    occurs
    first.

    3.
    The Utility shall post a bond in a form approved by
    the
    Agency to guarantee performance of the conditions of
    the
    granting of this variance.
    Said bond shall be in
    the
    amount of $500,000.
    4.
    Failure to comply with any of the conditions of this
    variance shall result in the revocation of the grant
    of this variance.”
    On December 6,
    1971, we received a Motion for Reduction of
    Performance Bond,
    or,
    in the alternative,
    for a stay.
    The company
    asserts that the $500,000.00 bond required was arbritarily determined
    and constitutes a penalty, and as such,,is unjust, discriminatory
    and unlawful.
    In support of its
    assertion,
    the company alleges an
    increase in its total indebtedness and represents that the proposed
    construction will entail additional borrowing in the approximate
    amount of $680,000.00.
    Petitioner also alleges that the requirement
    of the Environmental Protection Agency that the obligation of the
    bond be shown as a liability in the company’s corporate financial
    statements will impair its credit and hinder its ability to obtain
    the necessary funds to p~1rsueits abatement program.
    Lastly, the company asserts that the order of the Board
    is discriminatory when considered
    in light of other orders entered
    requiring posting of a bond.
    We deny the motion for reduction, or in the alternative, in
    the stay of the bond.
    Normally, in cases of this sort, we have .r~uired
    a bond in the approximate amount of the construction cost anticipated.
    However, in instances where the construction is in the millions of
    dollars, we have often required a bond in the amount of $500,000.00,
    feeling that this will furnish adequate assurance that the program
    of abatement upon which the variance was granted will be pursued
    to final completion.
    Cf. Illinois Power Company v. Environmental
    Protection Agency, Nos. PCB71-193,
    195,
    196,
    197,
    198.
    Petitioner has asserted no facts suggesting in any way that
    our order
    is arbitrary or unreasonable,
    and, accordingly,
    the motion
    for reduction or stay is denied.
    I, Christan Moffett, Clerk of the Pollution Control Board, certify
    tha~tthe above Supplemental Order and Opinion was adopted on the
    ~ day of January,
    1972 by a vote of 4-0.
    3
    340

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