NOTICE.
RECOMMENDATION
PROOF OF SERVICE

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

DynegyMidwest Generation, Inc.

Refurbishment ofUnit

Electrostatic

Precipitator

Property Identification Number

17-20-300-006-0080

)

PCB&~S7

)

(Tax Certification)

)

NOTICE.

JE CE

~V ~

(‘!

OFFICE

Utjj’

2003

STATE

OF ILLINOIS

Pol/utj~,~

Con tro/ Board

TO:

Dorothy Gunn, Clerk

Illinois, Pollution Control Board

State. ofIllinois

Center

100 W. Randolph Street, Suite 11-500

Chicago, Illinois 60601.

Steve Santarelli

Illinois. Department ofRevenue

101. West Jefferson

P.O. Box 19033

Springfield,

Illinois. 62794.

Donna Redmon

Tax Manager

DynegyMidwest Generation, Inc.

1000. Louisiana,. Suite. 5800

Houston, Texas 77002

PLEASE TAKE NOTICE that I have today. filedwith the, Office ofthe Pollution Control

Board

the

APPEARANCE.

AND

RECOMMENDATION

the

Illinois

Environmental

Protection Agency, a copy ofwhich is herewith served upon you.

ILLINOIS ENVIRONMENTAL PROTECTION AGENCY

1021. North Grand AvenueEast

P.O. Box

19276.

Spring field,. IL 62794-9276.

Telephone:. 217/782-5544

Facsimile:

217/782-9807.

TDD:

217/782-9143.

Date:.

October 14, 2003.

 .-4~---

Robb. H..Layman

Special Assistant Attorney. General

ARDC.

#6205498

THIS. FILING IS SUBMITTED

ON RECYCLED. PAPER

BEFORE THE. ILLINOIS POLLUTION CONTROL BOARD

‘~

Dynegy Midwest Generation, Inc.

)

r ~

Refurbishment ofUnit

1. Electrostatic.

Precipitator

PCB

Pofl~L

‘‘IVOIS

Property IdentificationNumber

)

(Tax Certification)

OQrd

17-20-300-006-0080

)

APPEARANCE

I hereby file my Appearance

in this

proceeding

on behalf of the. Illinois

Environmental

Protection Agency.

Robb H. Layman

Special Assistant Attorney General

ARDC #6205498.

DATED:

October 14, 2003

ILLiNOIS ENVIRONMENTAL

PROTECTIONAGENCY

1021 North Grand Avenue East

P.O.. Box

19276.

Springfield, Illinois 62794-9276.

Telephone: 217/782-5544.

Facsimile:.

217/782-9807

THIS. FILING IS. SUBMITTED.

TDD:.........217/782-9143

ON RECYCLED PAPER

BEFORE THE ILLINOIS. POLLUTION CONTROL BO~D

Dynegy

Midwest Generation, Inc.

OCT

Refurbishment ofUnit

Electrostatic

)..

Precipitator

)

Siq~-,~

PCB.

‘~1

PO//~10

Property IdentificationNumber

)

(Tax Certification).

17-20-300-006-0080

)

RECOMMENDATION

Now Comes the illinois Environmental Protection Agency (“Illinois EPA”), through its

attorneys,

and

pursuant to Section 125.204 ofthe Illinois Pollution Control Board’s (“Board”)

regulations, files the following Recommendation regarding the tax certification ofair pollution

control facilities pursuant to. 35 Ill. Adm.

Code

125.204.

1).

On April 29,

2003,

the. Illinois EPA received a request from DynegyMidwest Generation,

Inc. for an Illinois EPA recommendation regarding the tax certification ofair pollution

control facilities pursuant to 35 Iii. Adm.

Code 125.204, and noted the.request as log

number TC-03-04-29L.. (Exhibit A).

The applicant’s address is:

DonnaRedmon

Tax

Manager

Dynegy Midwest Generation, Inc.

1000. Louisiana

Suite 5800.

Houston, Texas 77002

3).

The air pollution control facilities in this request are located atPower Plant Road,

Oakwood,. Vermilion

 County

and consist of the. following:.

Refurbishment ofUnit

Electrostatic Precipitator whose primarypurpose is. to.

improve particulate collection and operation.

Because the primary purpose ofthis

system is to reduce or eliminate, air pollution, it is

certified as a pollution control

facility.

Section

11-10 of the Property Tax Code, 35 ILCS 200/11-10 (2000), defmes “pollution

control facilities” as:. “any system, method, construction, device or appliance appurtenant

thereto or any portion ofany building or equipment, that is designed, constructed,

installed or operated forthe primarypurpose of:

(a)

eliminating, preventing, or reducing

air orwater pollution

.or (b) treating, pretreating, modifying or disposing of any

potential solid, liquid or gaseous pollutant which if released without treatment,

pretreatment modification or disposal might be harmful, detrimental or offensive to

human, plant or animal life, or to. property.”

Pollution control facilities are entitled to preferential tax treatment, 35

ILCS 200/11-5

(2000)..

Based on the information in the. application and the. purpose. ofthe facilities,, to. prevent,

eliminate or

reduce air pollution, it is the illinois EPA’s engineeringjudgment that the

described facilities may be. considered“pollution control facilities,” pursuant to. 35 Ill.

Adm.

Code

125.200(a), with the primarypurpose of eliminating, preventing, orreducing

air pollution, or as otherwise provided in

35.

Ill. Adm. Code 125.200.

Therefore, the.

facilities are. eligible, for tax certification from the Board..

7..

Therefore, the illinois EPA recommends that the Board issue the. requestedtax

certification.

ILLINOIS ENVIRONMENTAL PROTECTION AGENCY,

By:

~r,’~t1

Robb H.

Layman

Special Assistant Attorney General

Of Counsel:

Charles E. Matoesian

Assistant Counsel

October 14, 2003

1021 North GrandAve.

E..

P.O. Box

19276

Springfield, Illinois

62794-9276.

Telephone:

217/782-5544

Facsimile:

217/782-9807

TDD:.

217/782-9143

U.S.

GOVERNMENT

PRINTING

OrFIcE~

t077—72D—177

Form Approved

0MB

No.

158—R0013

ENVIRONMENTAL

PROTECTION

AGENCY

STATE

Illinois

NOTICE OF STATE CERTIFICATION

_______________________________________

(Pursuant to Section

169 of the

Internal

Revenue

WATER

OR AIR

POLLUTION CONTROL AGENCY OR

Code

of 1954, as amended)

Environmental Protection Agency

It is

hereby certifIed

that the

control

facility described

the

attached application

is in conformity with

State

and

local programs

and

requirements for the control of

water

pollution

air

pollution, as

requircd

section

169 of the

internal.

Revenue

Code of

1954,

amended,

and regulations issued

thereunder. According to the applicant, this control facility

was placed

will

be placed

operation

December 16, 2001

In the

case

of control

facility

not yet

operation, this

notice

is certification

only that the control facility, if constructed and operated

in accordance with the application, will be in

conformity

with State and local programs or requirementsfor

abatement or control of water or

air

pollution.

1. NAME

APPLICANT

Dynegy

Midwest Generation, Inc.

2. PERSON

AUTHORIZED

RECEIVE

CERTIFICATION

Donna Redmon

ADDRESS

(Street. City,

State,

Zip

Code)

2828 North Monroe Street

Decatur, IL

62526

TITLE

...

Tax

Manager

ADDRESS

(Street,

City, State, Zip Code)

1000 Louisiana, Ste 5800, Houston, TX

77002

DESCRIPTION

OF CONTROL FACIUTY

Refurbishment ofthe Vermilion Power Station Unit

1 electrostatic precipitator to improve operation and

reliability.

The refurbishment includes:

‘Replacement ofthe collectorplates, emitting electrodes, mechanical rapper systems, and ESP hot roof; and

• addition ofliner plates to theinside ofthe existing precipitator box, a new purge air system to keep ash from

entering the equipment in the penthouse area, and a fifthtransformer-rectifier set.

LOCATION OF CONTROL FACILITY

(Street, City,

State, Zip Code)

5. RECEIVING

BODY

OR STREAM OF WATER, IF

ANY

Power Plant Road, Oakwood, IL 61858

N/A

6. USE OF THE CONTROL FACILITY

CERTIFIED HEREBY

IS IN

CONFORMITY WITH THE

FOLLOWING APPLICABLE STATE PLAN OR

REQUIREMENTS

FOR THE

CONTROL OF

WATER POLLUTION

AIR POLLUTION.

Illinois Administrative

Code 212

/4....

EPA

Form

3300—2

(8—77)

ISSUED

‘.

.

THIS_DAYOP_

..‘

‘

19

SIGNED

(Officialof State Agency)

.:.:~

STATE CERTIFICATION

NUMBER

TITLE

U.S.

GOVERNMENT

PRINTING

OFFICE~ 1g77—720—I7e

Form

Approved

0MB No. .158—R0013

U.S. ENVIRONMENTAL

PROTECTION

AGENCY

NOTICE

OF FEDERAL

CERTIFICATION

(Pursuant to Section

169

of the Internal

Revenue

Code

1954, asamended)

PLEASE TAKE NOTICE that pursuant to section

169 of the Internal Revenue Code of

1954,

as amended,

and Part

of Title

40 of the

Code

of Federal Regulations.

the control facility

identified herein

ccrtifled

...

Will, Ifconstructed, reconstructed, acquired,

erected, installed

and operated in accordance with the accompanying

 application,

 be certified

beingin compliance with the applicable regulations of Federal agencies and the general

 policies ofthe

United.

States

for cooperation with

the States

in the prevention and

abatement

~‘water

pollution

air pollution under the Federal Water Pollution Control Act,

amended

(33 U.S.c...1251 et seq.)

or the Clean Air Act,

amended

(42 U.S.C. 1857

~

~.).

 This certification is

based

on

facia furnished

by the

applicant,

and is

valid for purposes of section

169

only

 to the extent

that such facts are complete and accurate

1..NAME

APPLICANT

Dynegy’ Midwest Generation, Inc.

ADDRESS

(Street,

City,

State,

Zip

Code)

2828 North Monroe Street

~~eca~i~r,

“

2. EMPLOYER

IDENTIFICATION

NUMBER

-1385459

PERSONAUTHORIZED

RECEIVE CERTIFICATION:

NAME

DonnaRed~non

‘

ADDRESS

(Street, City, State, Zip Code)

1000 Louisiana, Ste.5800, Houston, TX

77002

TITLE

TaxManager

OF CONTROL FACILITY

Refurbishmentof the Vermilion Power Station Unit

electrostatic precipitator to improve operation and

reliability

The refurbishment includes

• Replacement of the collector plattis, emittmg

electrodes,mechamcal rapper systems, and ESP hot roof, and

• addition ofliner plates to the inside ofthe existing precipitator, box, a new purge

air

system to keep ash from

entering the equipment in the penthouse area, and a fifth transformer-rectifier set.

,~.

LOCATION OF

CONTROL FACILITY

(Street, Qty,

State, Zip

Code)

Power Plant Road, Oakwood, IL 61858

5. EFFLUENT

DISCHARGED TO

N/A

THE

CONTROL FACILITY

IDENTIFIED

HEREIN

bOES

DOES NOT GENERATE PROFITS THROUGH THE

RECOVERY

AND

SALES

WASTES.OR

OTHERWISE.

B. THE

CONTROL FACILITY

IDENTIFIED

HEREIN

IS NOT A BUILDING

THE ONLY

FUNCTION

OF WHICH

IS THE ABATEMENT OR

CONTROL OF POLLUTION, AS DETERMINED iN

ACCORDANCE WITH SECTION 1.169-2

(2)

(I)

OF THE

INCOME TAX

REGULATIONS.

A.THE

CONTROL FACILITY

IDENTIFIED

HEREIN IS

USED ONLY

IN CONNECTION WITH PLANTS

PROPERTIES

THAT

WERE IN.

SERVICE

BEFORE

DECEMBER

31, 1975

.j2L.

OF THE AMO RTIZABLE BASIS OF THE FACILITY

IS ALLOCABLE TO

ITS

USE IN CONNECTION

WITH PLANTS

OR PROP.

ERTIES THAT WERE

IN SERVICE ON OR

BEFORE

DECEMBER

31,1975.

10.

El.

A. THE CONTROL FACILITY

PERFORMS

NO FUNCTION

IN ADDITION TO THE ABATEMENT OR CONTROL OF POLLUT)ON.

,,.~.._

OF ~,HE AMORTIZABLE

BASIS OF

ThE

CONTROL FACILITY

IS ALLOCABLE

TO THE

ABATEMENT DR CONTROL

POLLUTION.

ISSUED

THIS

DAYOF_________________

,19

SIGNATURE

STATE CERTIFICATION

NUMBER

TITLE

EPA

Form 3300—3

(8—77)

U.S.

GOVEPINMENT

PRINTING

OFFICE:

1977—rze...eta

Form

Approved

0MB No.

158—R0013

ENVIRONMENTAL

PROTECTION AGENCY

APPLICATION

FOR CERTIFICATION

OF POLLUTION CONTROL FACILITY

(Pursuant

to Section 169 of the InternaiRevenue Codeof 1954,

a.r amended)

CERTIFICATION

MAY

MADE

UNLESS A COMPLETED APPLICATION FORM

HAS

BEEN

RECEIVED

(26

U.S.C.

§169;

40 C.F.R.

PART

20).

IF NO

CLAIM

OF BUSINESS

CONFIDENTIALITY

ACCOMPANIES

THIS

INFORMATION WHEN

IT IS

RECEIVED

EPA.

IT MAY

MADE AVAILABLE TO THE PUBLIC

EPA

WITHOUT

FIJETHER

NOTiCE.

INFORMATION COVERED

BY A CLAIM

OF CONFIDENTIALITY WILL BE

DISCLOSED BY EPA ONLY TO THE EXTENT,

AND

BY MEANS OF THE PROCEDURES,

SET FORTH IN

TITLE 40,

CODE OF FEDERAL REGULATIONS, PART2,41

C.F.R. 26902

seq.,

SEPTEMBER

1, 1976.

BUSINESS

CONFIDENTIALITY

CLAIM

COVERING

ALL

PART

THE

INFORMATION

FURNISHED

WITH

THIS

APPLICATION

MAY BE ASSERTED

PLACING

(OR ATTACHING

TO)

THE INFORMATION

AT THE

TIME

IT IS SUBMITTED

EPA,

A COVER SHEET

STAMPED OR

TYPED

LEGEND, OR

OTHER SUITABLE FORM OF

NOTICE

EMPLOYING

LANGUAGE SUCH AS

“TRADE

SECRET,”

“PROPRIETARY,”

“COMPANY

CONFIDENTIAL.” ALLEDGEDLY

CONFIDENTIAL

PORTIONS OF OTHERWISE

NON-CONFIDENTIAL

DOCUMENTS

SHOULD

CLEARLY

IDENTIFIED,

AND

MAY

SUBMITTED

SEPARATELY TO

FACiLITATE

IDENTIFICATION

AND

HANDLING

EPA.

THE APPLICANT

DESIRES CONFIDENTIAL

TREATMENT ONLY

UNTIL

A CERTAIN

DATE OR

UNTIL THE OCCURRENCE

OF A CERTAIN EVENT, THE NOTICE SHOULD SO STATE.

Application

hereby

made

for

certification

the

pollution

control

facility

descril,ed

herein.

The

following

information

submitted

accordance

with

provisions of Part

20 of Title 40

of the Code of Federal Regulations

andto

the

best

of my knowledge and belief is true

and correct.

APPLICANT

Dynegy Midwest Generation, Inc.

DATE

April 22, 2003

SIGNATURE

~j2~di1-’

STREETADDRESS,CITY,STATE,ZIPCODE

1000 Louisiana,

Suite 5800

Houston, Texas

77345

TITLE

Director, Environmental

NOTE:

READACCOMPANYING

INSTRUCTIONS CAREFULLY PRIOR

TO COMPLETING FORM.

EPA

Form

3300—1

(Rev.

8—77)

PREVIOUS

EDITION

OBSOLETE

PAGE

OF 5

ORIGINAL

~U.S.

GOVERNMENT

PNINTING

OFFICE:

tgll—729—6Io

Form Approved

0MB

No.

158—R0013

SECTION

A-

IDENTITY AND

LOCATION

OF CONTROL FACiLITY

FULL BUSINESS NAME

OF APPLICANT

TYPE OF OWNERSHIP

Dynegy

Midwest

Generation, Inc.

INDIVIDUAL

OTHER

(Describe)

PARTNERSHIP

12J

CORPORATION

PERSON TO CONTACT

REGARDING THIS APPLICATION

(Name and Title)

TELEPHONE

Starla Lacy, Director, Environmental

713-767-8961

ADDRESS

(Street,

City, State,

Zip

Code)

1000

Louisiana,

Ste 5800,

HOuston, TX

77002

PERSON AUTHORIZED

RECEIVE CERTIFICATION

(Nameand

Title)

DonnaRedmon

Tax Manager

ADDRESS

(Street. City, State,

Zip Ce4e)

1000 Louisiana, Ste

5800,

Houston, TX

77002

BUSINESS NAME

PLANT

(If

diffrrent

from Itemi

)

(Street,

City,

State, Zip Code)

6.

APPLICANT’S

EMPLOYER

Vermilion Power Station

IDENTIFICATION NO.

Power Plant Road, Oakwood, IL 61858

37-1385459

SECTION 8-DESCRIPTION OF

DESCRIBE

THE

FACILITY

FOR WHICH

CERTIFICATION

IS SOUGHT.

INCLUDE TYPE OF

EQUIPMENT, MANUFACTURER

AND MODEL

NUMBER. SUBMIT DESIGN CRITERIA,

ENGINEERING

REPORT AND/OR

PERFORMANCE SPECIFICATIONS WHICH

DESCRIBE

FUNCTION

AND OPERATION OF

FACILITY:

Refurbishment ofthe Vermilion Power Station Unit

electrostatic precipitator to improve operation and

reliability.

The refurbishment includes:

• Replacement ofthe collector plates, emitting electrodes, mechanical rapper ~ystems,and ESP hot roof;

and

• addition ofliner plates to the inside of

the existing precipitator box, a new purge air

system tokeep ashfrom

enteringthe equipment in the penthouse area, and a

fifth transformer-rectifier set.

IS FACILITY

OPERATION?

IF “YES” DATE

FACILITY

“NO” DATE

FACILITY

FACIL.ITY CONSISTS OF

WAS PLACED IN OPERATION

IS EXPECTEOTO

BUILDING,

IS ITEXCLLSIVE.

YES

PLACED

OPERATION

LY FOR CONTROLOF POLLU-

December2001

TION?

YES

DOES

THE

FACILITY

(installed after December 31, 1975 ONLY)

AFFECT

THE OPERATING

UNIT

(ofthe plant or otherproperty

in connec-

tion with which the facility is.used)

MOST DIRECTLY

ASSOCIATED WITH THE

FACILITY

ANY OF

THE FOLLOWING WAYS?

INCREASE THE

OUTPUT OR

CAPACITYDYES

~NO

EXTEND

THE

USEFUL

LIFE?

YES

REDUCE

THE TOTAL OPERATING

COSTS?

YES

IFTiIEANSWERTOANYOFTHEABOVEIS’YES’ISTHEPERCENTAGE

BYWHICHTHEOPERATING

UNITWASEFFECTED

LESS

IF NONE OF

THE

FOREGOING

INCREASES,

EXTENSIONS.

OR REDUCTIONS

EXCEEDING

STATE

THE

RATIONALE

AND

FURNISH THE

DATA

USED TO

ARRIVE AT THE

PERCENTAGE(S) GIVEN

RESPONSE TO

ITEM 4(a).

SECTION C

DESCRIPTION

OF COMMERCIAL

PROCESS OR

ACTIVITY.

DESCRtBE

PROCESS OR ACTIVITY

IN CONNECTION

WITH WHICH

FACILITY

IS OR WILL

BE USED.

Electric Generating Unit

STANDARD

INDUSTRIAL

CLASSIFICATION

(SIC)

CODE NUMBER

4911

DATE

ThAT

EACH PLANT

OTHER PROPERTY

CONNECTION WiTH WHCH FACtUTY

OR WILL BE

USED, COMM~NCE

OPERATION.

PLANTORPROPERTY

DATE

Vermilion Power Station, Unit

May

1955

EPA Form

3300—1

(Ray.

8—77

ORIGINAL

PAGE 2 OF 5

U.S.

GOVERNMENT

PRINTING

OFFICE:

1577...729...620

SECTION C

DESCRIPTION OF COMMERCIAL

PROCESS

ACTIVITY

/1~

Form

Approved.~$

0MB No. 158-~13

4A.

FACILITY

IS OR WILL

USED

CONNECTION

WITH MORE THAN ONE PLANT

OR PROPERTY. AND

IF ONE

,~iO~THE

PLANTS OR PROPERTIES

CONNECTION WIrH

WHICH THE

FACILITY.IS

OR WILL

USED WAS NOT IN

OPERATIQfPR(OR

JANUARY

1, 1976,

STATE

THE PERCENTAGE

OF THE

COST OF FACILITY WHICH

IS ALLOCABLE

TO THE

PLANT($)~R

PROPERTY(IES)

OPERATION PRIOR

TO THAT DATE.

N!A

45.

DESCRIBE

THE

REASONING

AND FURNISH

THE DATA

USED TO ARRIVE

AT THE

PERCENTAGE GIVEN

AfONSE

ITEM 4(4).

-

N/A

I’

BA.

FACILITY

PERFORMS A FUNCTION

FUNCTIONS IN

ADDITION TO THE

MENT OF POLLUTION,

STATE THE

PERCENTAGE

OF THE

COST OF FACILITY

ALLOCABLE

TO THE

ABATEMENT~~POLLUTION.

N/A

5B.

DESCRIBE THE

REASONING

AND FURNISH

THE

DATA USED TO ARR~VE~

HE PERCENTAGE GIVEN

RESPONSE TO

ITEM 5(A).

-

-

-

N/A

SECTION

WASTEWATER CHARACTER

IStICS

becompleted only

connection

with

facilities

for

the

control of

water pollution)

DESCRIBE

THE

EFFECT-OF POLLUTION CONT~*JFACILITY

IN TERMSOF QUANTITY

AND QUALITY

OF EMISSION

AND

OFWASTESOR BY-PRODUCTS REMOVEff’ALTERED,

DISPOSED OF, OR

PREVENTED. IF FEASIBLE, ATTACH:

PROCESS FLOW OR SCHEMATIC DIAGRAM~TH MATERIAL

BALANCES

OF

THE

WASTE

OR WASTEWATER STREAM

DISCHARGE. REPORT EITHER c!NAc~AL

BASIS

OR, IF FACILITY

IS NOT YET IN OPERATION,

DESIGN

-BASiS

(UseStandard Units

—

pounds/gàIlg,~raiizsfliter,

ppm, etc.).

HOURS PLANT OR PROPERTYISIN~RATION:

Per Month:

Mm.

Max.

Avg.

.

-

-.

 .•..

Per Year:

Mm.

Max.

Avg.

2.WASTEWATER

~‘

ITHOUT

POLLUTION CONTROL FACILITY

WITH

POLLUTION CONTROL

FACILITY

DISCHARGE

-F~~

(A)

GALLONS PER

(a.~(A.

Max.

Avg.

Mb.

Max.

Avg.

MINUTE. (B)

MIL-

.l.,~’

LIONS OF GALL0~

Mm.

Max.

Avg.

Mm.

—

Max.

Avg.

3.POLLUTANT~ASTE_PRODUCTS

3.a

j.’

Mm.

Max.

Avg.

Mm.

Max.

Avg.

3.b

Mfri.________

Max.

Avg.

Mm._______

Max.

Avg.

Mm.

Max.

Avg.

Mm.

Max.

Avg.

3.d

Mm.

Max.

Avg.

Mm.

Max.

Avg.

3.0

Mm.

Max.

Avg.

Mm.

Max.

Avg.

3.f

Mm.

Max.

Avg.

MIn.

Max.

Avg.

3.g

Miii.

Max.

Avg.

Miii.

Max.

Avg.

3.h

Miii;

Max.

Avg.

Mm.

Max.

Avg.

3.i

Mm.

Max.

Avg.

MIn.

Max.

Avg.

3.i

Miii.

Max.

Avg.

Mm.

Max.

Avg.

EPA

Form

3300—1

(Rev.

8—77)

PAGE 30F5

ORIGINAL

U.S.

GOVERNMENT

PRINTING

OFFICE:

~77—72S.-62I

Form Approved

0MB

No.

158—R0013

DESCRIBE

METHOD

(GRAB

OR COMPOSITE)

AND FREQUENCY OF SAMPLING AND METHODS

USED TO DETERMINE

QUANTITIES

POLLUTANTS.

IS FACILITY

A PRETREATMENT

FACILITY

TO PREPARE WASTEWATER FOR

RECEIPT BY ANOTHER FACILITY,

PUBLIC

PRIVATE,

FOR FURTHER

TREATMENT?

“YES”, SKIP ITEMS 6,7

AND

BAND

IDEI’CTIFY

RECEIVING

FACILITY.

DYES

NO.

IDENTIFY

THE BODY

OR STREAM OF WATER

INTO WHICH

WASTEWATER

FROM Tl-’~PLANT OR

PROPERTY,

CONNECTION

WITH WHICH THE

FACILITY

IS USED, IS OR WILL

DISCHARGED.

N/A

DESCRIBE

LOCATION

DISCHARGE

OUTFALL WIll-I RESPECT TO RECEIVING

WATERS.

IS THE

RECEIVING

BODY OR STREAM OF WATER

A NAVIGABLE

WATERWAY OF

THE

UNITED STATES ORATRIBUTARYTHEREOF?

YES

“NO,” PROCEED TO ITEM 9.

“YES” HAS A

U.S. ARMY CORPS OF

ENGINEERS

DISCHARGE PERMIT

BEEN

APPLIED

FOR?

YES

IF “NO,”

EXPLAIN,THEN

PROCEED TO ITEM 9.

ANSWER TO ITEM BA

IS “YES”

HAS A

U.S. ARMY CORPS OF

ENGINEERS

DISCSr4ARGE PERMIT BEEN

ISSUED?

YES

(1)

IF “YES,” ATTACH

COPY OR PROVIDE

PERMIT NUMBER ______________OMIT

ITEM 9.

(2)

IF “NO,” EXPLAIN, GIVING

DATES OF ANY OFFICIAL

ACTION WITH

RESPECT TO APPLICATION.

ITEM

HAS NOT BEEN

ANSWE RED “YES,”

IDENTIFY

APPLICABLE STATE AND

LOCAL WATER POLLUTION CONTROL

REQUIREMENTS AND STANDARDS~

SECTION E

EMISSION CHARACTERISTICS (To be completed

onIy~n

connection wBth

facilities

for the control

of air

pollution)

DESCRIBE THE

EFFECT OF POLLUTION CONTROL

FACILITY

TERMS

QUANTiTY AND

QUALITY

OF EMISSION AND

OF EMISSION

AND

WASTES

BY-PRODUCTS REMOVED, ALTERED, DISPOSED OF, OR PREVENTED.

FEASIBLE,

ATTACH PROCESS

FLOW OR SCHEMATIC DIAGRAM WITH

MATERIAL

BALANCESOF POLLUTANTS

THE EMISSION

STREAM.

REPORT EITHER ON ACTUAL

BASIS, OR, IF FACILITY

IS NOT YET IN OPE~FATION,ON DESIGN BASIS.

HOURS PLANT OR

PROPERTY

IS IN

OPERATION:

Per Month:

Mm.

~.ax.

....Z~.

Avg.

Per

Year:

Mm.

5.10

~ax.

8,160

Avg.

4,540

POLLUTANTS TO

CONTROLLED

(Specify each)

b.

VOLUMETRIC

FLOW

RATE

EMIS-

SION

(actual

cubic

WITHOUT POLLUTION

CONTROL FACILITY

WITH

POLLUTION CONTROL

FACILITY

Miii

Max

A~8’300at

338

Min__Max._A~~.~.at

...22!...

CONCENTRATION

(in volume

gaseous

components)

Mhn._Max._Avg._at_

°F

Mmn____Max._Avg._at

°F

MIn._Max._Avg_

°F

Min.........Max._Avg._at

Mun...........Max._Avg._at_

°F

Min__Max._Avg._at

Mun._Max........_..Avg._

a-t_

°F

Mmn.,.........,Max._Avg._at

-5.

CONCENTRATION

(~yjainsfpu~c

feetof

matter)

Mmn._

Max.._

.Avg.1...~...~

°F

Mir~..........

Max._Avg.

.___

°F

CONCENTRATION

(grains/cubic feet of

any specific particu.

late

listed in

E.2abcwe)

MIn._Max..........Avg............

°F

Mir~...........

Max._Avg._.......ot

EPA

Form

3300—1

(Rev.

8—77)

ORIGINAL

PAGE

40F

U.S.

GOVERNMENT

PRINTING

OFFICE:

1071—720—622

Form Approved

0MB No.

158—R0013

DESCRIBE

METHOD OF

DETERMINING

RATES, CONCENTRATION

AND CHARACTERISTICS OF

EMISSIONS.

Volumetric flow rate is from the latest particulate emission stack test.

Concentration (grains/cubic feet) without pollution control facility was calculated using AP-42 emission

factor with coal data, and flow data from the particulate emission stack test.

Concentration (grains/cubic feet) with pollution control facility is taken from the latest particulate emission

stack test.

Theminimum, maximum,

 andaverage weretaken fromthe

threetest runs.

IDENTIFY

APPLICABLE STATE

AND

LOCAL AIR POLLUTION

CONTROL REQUIREMENTS

AND STANDARDS.

Illinois

 Administrative

Code 212

SECTION

F -COST INFORMATION (See Note

instructions

for

this section)

IS THERE

ANY BY-PRODUCT OR

MATERIAL WHICH, WITHOUT THE

CSONTROL FACILITY, WOULD BE

LOST AND WI-IICH

RECOVEREDTHROUGHTHE

USE

OFTHE

FACILITY?

-DYES

f~NO

YES, IDENTIFY

INDICATE

THE

DISPOSITION

EACH TYPE OF

RECOVERED

MATERIAL,

INCLUDING

IF APPLICABLE, THE SALE OR

SIMILAR DISPOSITION

RECLAIMED OR RECOVERED

MATERIALTO

INDUSTRIAL WASTE RECOVERY FIRMS OR OTHERS.

ANNUALCOST

RECOVERY

MATERIAL

RECOVERED AND SOLD

N/A

OTHER

N/A.

TOTAL

N/A

TOTAL

AVERAGE ANNUAL

MAINTENANCE AND OPERATING

COSTS

(Notapplicable if no cost recovery

is reportedin Item 2)

N/A

EPA

Form

3300—1

(Rev.

8—77)

PAGE 5 OF 5

ORIGINAL

~PR-1Q—2OO3

THU

02:04

DYNEGY

IIIDWEST

FiX

NO.

2178723550

JLLNOIS POLLUTION CONTROL

BOARD

April 3,

2003

DYEGY MIDWEST GENERATION, LLC

)

(Rçfurbished Electrostatic Precipitator Unit

)

-~Pioperty

Identification Number -17-20-300-

)

006-0080)),

)

Petitioner,

)

PCBO3-172

)

(Thx Certification)

~JLU1OIS

ENVIRONMENTAL

)

~!ROTECTIQN

AGENCY,

)

Respondent.

)

-DRD~

 TEEBOARD ~y T.E. Johnson):

On March 31, 2003, the Ilimois

 Environmental Protection

Agency (Agency)

~ccoxninended

 that

theBoard certify

 certainfacilities

ofDynegyMidwest Generation,

 LL.C

(Dynegy

Midwest)

as “pollution control

 facilities”

for preferential tax treatment under

the

~roperty

 TaxCode.

35 ILCS 200/11-5

et seq.

(2002).

The Agency

 filed

the recommendation

Part

125 of

the

Board’s procedural rules.

Iii.

 Adm.

Code

125.

 this

order,

the

 Board

des~ibes

the legal framework fortax certifications,discusses the Agency’srecommendation,

~nd~ernfies

 that

Dynegy Midwest’s facilities

are

pollution control

 facilities

LEGAL

FRAMEWORK

Underthe Property

Tax

Code, “ijt

is thepolicy of

this

State that pollution control

f~ci1jtics

should be

 valued,

at 33

1/3

ofthe fair Cash

 value

their economic

productivity to

thei

 owners.”

ILCS 200/11-5 (2002);

see also 35

III. Adni. Code 125.200(a)(2).

“For-tax

puxp~oses,pollution control facilities shall be

 certified

as such by the Pollution Control Board

and

sl.~be

assessed

by the

 Department

Revenue).”

35 ILCS 200/11-20 (2002);

see also

Iii.

Ad;.

 Codó

125.200(a).

UnderSection 125.202 ofthe Board’s procedural rules, a person may submit an

~p1jcation

for

tax certification to the Agency.

35 Iii. Adm. Code 125.202.

1!the Agency

receives a tax certification application, the Agency must filewith the Board a recommendation

111e application, unless the applicant withdraws the application.

35111. Adin. Code 125.204(a).

Ainqng other things, the Agency’s filing must recommend

 that the

Board issue ordeny tax

àerti~ication.35

flI. Adm. Code 125.204(a)(4).

Ifthe

 ~oard

finds “that the claimed facility or

relevant portion

 thereof

is a pollution control

facility.

the Pollution Control Board.

shall

eptei~a

finding-and issue

certificate to that

effect.”

35 ILCS 200/11-25 (2002);

see also 35

111.

Code 125.216(a).

iWR-1O--2003

THU

02:04

DYNEGY

NIDWEST

Fi~XNO.

2178723550

;

;~.

AGENCY

RECOMMENDATIOj~j

The Agency states that

received a

 tax certification

application from DynegyMidwest

~n ~epternber16, 2002.

Agency Recommendation (Agency Rec.) at 1.

On March 31, 2003, the

Age~icy

filed a recommendation on the application with the Board.

The Agency’s

~ecornmendation

identifies

the

facilities at isslie:

 Refurbishment

of Electrostatic Precipitator

Qni;~1.Agency Rec. at 1.

TheAgency’s recommendation further describes the facilities:

for

part~cuIate

c~l1ectto’i

and

operation

at 1-2

The Agency’s recommendation also

 identifies

thebcationof

the facilities:

Power

 Plant

Road, Oakwood, Vermilion

County.

Id. at

The Agency

 recommends

that

the

Board certify that theidentified fac,hties are pollution

~ón~ol facilities as

 defined

in Section

11-10 ofthe Property

Tax

Code

(35

ILCS 200/11-10

~20~2))becausethe primarypurpose of’the facilities is eliminating,preventing, orreducing air

pollution.

Agency Rec.

at 2.

TAX CERTIFiCATE

-~.

i’he Board finds

and

certifies that Dynegy Midwest’s facilities- identified in this

 order are

pollution controlfacilities under the Property

Tax

Code.

35 ILCS 200/11-10 (2002).

Under

~Sec~jon

11-25 ofthe Property Tax Code, the effective date ofthis certificate is “the

 date

ç~p~ication

for the certificate orthe date ofthe construction ofthe facility, whichever is Later.”

~5 ILCS-200/11-25 (2002);

see also 35

IlL

 Adni. Code

125.216(a).

Section

125.216(d) ofthe

~o~I~’s procedural rules statesthat the Clerk “will provide the-applicant and

the

Agency

witha

ofthe Board’s order setting forth

the Board’sfindingsand cert~/icase,

~fany.”

Iii. Adni.

:o4e 125.216(d) (quoting in italics 35

ILCS

200/11-30 (2002)).

TheClerk therefore will

rodeDynegy

Midwest

and

the Agency with

a copy ofthis order.

IT IS SO OIWERED

Section 41(a) ofthe Environmental Protection Act provides that

 final Board

orders

may

;~e

~ppeà.led

directly to

the

Illinois Appellate Court within

35

days afterthe Board serves the

àrd&-.

415

ILCS

5/41(a) (2002); see also 35

111.

Adm. Code 101.300(d)(2),

101.906, 102.706..

flhi~is

Supreme Court Rule 335

 establishes

filing

 r~quirementsthat

apply when the Illinois

.~.p~ellate

Court, by statute, directly reviews administrative orders.

172

111.

2d R..

335.

The

po*d’s procedural

 rules

provide

 that

motions forthe

Board

to reconsider ormodify its final

prd~rs

may be filed with

the

Board within 35

days

 after

the order is received.

Dl.

 Adrn..

Code

~i0~520;

see also

III.

 Adm.

Code 101.902,

102.700,

102.702.

I, Dorothy M.

 Gurin,

Clerk of the Illinois Pollution Control Board,

 certify.that

the Board

adopted the above order on April 3, 2003, by a vote of7-0.

Dorothy

Gwm, Clerk

Illinois Pollution Control Board

-5-

PROOF OF SERVICE

the.

undersigned,

certify.

that

have

served

the

attached

 APPEARANCE AND.

RECOMN’IENDATION. upon the person to whom it is directed, by placing them in

an envelope

addressed to:.

TO:

Dorothy Gunn, Clerk

Illinois Pollution Control Board

State ofillinois. Center

100 W. Randolph Street, Suite 11-500

Chicago, Illinois 60601

Steve Santarelli

Illinois Department ofRevenue

101 West Jefferson

P.O. Box 19033

Springfield, Illinois

62794.

Donna Redmon

Tax Manager

Dynegy Midwest Generation,, Inc.

1000 Louisiana,

Suite 5800

Houston, Texas 77002

and

mailing itby First Class Mail from Springfield,, Illinois, on October 14,. 2003, with sufficient

postage affixed.

Robb H. La~ian

Special Assistant Attorney General

ARDC

#6205498.

THIS. FILING IS. SUBMITTED

ON RECYCLED. PAPER