NOTICE
RECOMMENDATION
PROOF OF SERVICE

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

Dynegy Midwest Generation, Inc.

Refurbishment ofUnit 2 Electrostatic

Precipitator

Property IdentificationNumber

1 7-20-300-006-0080

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

PLEASE TAKE NOTICE that I have today filed with the Office ofthe Pollution

Control

Board

the

APPEARANCE

AND

RECOMMENDATION

the

Illinois

Environmental

Protection Agency, a copy of which is herewith served upon you.

ILLINOIS ENVIRONMENTAL PROTECTION AGENCY

1021 North Grand Avenue East

P.O. Box

19276

Spring field, IL 62794-9276

Telephone: 217/782-5544

Facsimile:

217/782-9807

TDD:

217/782-9143

)

PCB

O~5~

)

(Tax Certification)

)

NOTICE

OCT

Board

Date:

October 14,

2003

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.

)

Refurbishment ofUnit 2 Electrostatic

)

Precipitator

PCB

Property Identification Number

)

(Tax Certification)

Board

17-20-300-006-0080

)

APPEARANCE

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 ENVIRONMENTALPROTECTION AGENCY

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 BOARD

~‘

DynegyMidwest Generation, Inc.

)

Refurbishment ofUnit 2

Electrostatic

)

P011

Precipitator

)

—

£ItIo~

~~~A/OJ~

)

PCB

JBoQrd

Property Identification Number

)

(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 of the Illinois Pollution Control Board’s (“Board”)

regulations, files the following Recommendation regarding the tax certification of airpollution

control facilities pursuant to 35 Ill. Adm. Code

125.204.

On April 29, 2003,

the Illinois EPA received a request from Dynegy Midwest Generation,

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

control facilities pursuant to 35

Iii.

Adm. Code

125.204, and noted the request as log

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

The applicant’s address is:

Donna Redmon

Tax Manager

DynegyMidwest Generation, Inc.

1000 Louisiana

Suite 5800

Houston, Texas 77002

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

Oakwood, Vermilion County and consist ofthe following:

Refurbishment ofUnit 2 Electrostatic Precipitator whose primary purpose 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 ofthe Property Tax Code,

ILCS 200/11-10

(2000), defines “pollution

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

thereto or any portion of any building or equipment, that

is designed, constructed,

installed or operated for the primarypurpose of:

(a) eliminating, preventing, or reducing

air or water pollution

or (b) treating, pretreating, modif~iing

or disposing ofany

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 orreduce air pollution, it is the Illinois EPA’s engineering judgment that the

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

Ill.

Adm. Code

125.200(a), with the primarypurpose ofeliminating, preventing, or reducing

air pollution, or as otherwise provided in 35 Iii.

Adm. Code

125.200.

Therefore, the

facilities are eligible for tax certification from the Board.

Therefore, the Illinois

EPA recommends that the Board issue the requested tax

certification.

ILLINOIS ENVIRONMENTAL PROTECTION AGENCY,

By:__________

Robb

H. Layman

Special Assistant Attorney General

Counsel:

Charles E. Matoesian

Assistant Counsel

October 14, 2003

1021 North Grand Ave. 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

OFFICE:

1977—725—177

Form Approved

0MB No.

158—R0013

ENVIFIONMENTALPROTECTION

AGENCY

STATE

Illinois

NOTICE

OF STATE

CERTIFICATION

__________________________________________

(Pursuant to Section

1690? the

Internal

Revenue

WATER

AIR POLLUTION

CONTROL AGENCY

Code

1954,

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,

required

section

169

the

Internal

Revenue

Code of

1954,

amended,

and regulations

issued

thereunder.

According to

the applicant,

this control facility

was placed

will

placed

operation on

January

2001

In the

case

of control

facility not yet

in operation,

this

notice

is certification only

that the

control

facility, if

constructed

and

operated

in accordance with

the

application, will

in conformity with

State

and

local programs or requirements for abitement

or control of watex or

air

pollution.

1. NAME

OF APPLICANT

Dynegy Midwest Generation, Inc.

2. PERSON

AUTHORIZED

RECEIVE

CERTIFICATION

Donna Redmon

ADDRESS

(Street,

City,

State,

Zip

Code)

2828 North Monroe Street

Decatur,

62526

TITLE

Tax Manager

ADDRESS

(Street, City, State,

Zip Code)

1000 Louisiana, Ste 5800

Houston, TX

77002

3. DESCRIPTION OF CONTROL FACIUTY

Refurbishment of the Vermilion Power Station Unit 2 electrostatic precipitator to improve operation and

reliability.

The refurbishment includes:

•~Rep1acement

of thô collectorplates, emitting electrodes, and mechanical rapper systems.

4. LOCATION OFçONTROL

FACILITY

(Street,

City, State, Zip

Code)

5. RECEIVING

BODY OR STREAM OF WATER,

IF ANY

Power Plant Road, Oakwood, IL 61858

N/A

USE OF THE CONTROL FACILITY

CERTIFIED HEREBY

IS IN CONFORMITY

WITH THE

FOLLOWING APPLICABLE. STATE

PLAN

REQUIREMENTS

FOR THE CONTROL OF

WATER POLLUTION

AIR POLLUTION.

35 Illinois Administrative Code 212

ISSUED

TIIIS_DAYOF

SIGNED

(Official ofStareAgency)

STATE CERTIFICATION

NUMBER

TITLE

EPA

Form

3300—2

(8—77)

U.S.

GOVERNMENT

PRINTING

OFFICE:

1577—729— lie

Form

Approved

0MB No. 158—R0013

U.S.

ENVIRONMENTAL

PROTECTION

AGENCY

NOTICE OF

FEDERAL

CERTIFICATION

(Pursuant

Section 169

the

Internal

Revenue Coda of 1954, as amended)

PLEASE

TAKE

NOTICE

that

pursuant

section

169 of the Internal

Revenue

Code

of 1954,

amended,

and Part

Title 40 of Use

Code

of Federal Regulations.

the

control

facility identified herein

ecrilfied

\‘/jll,

Ifconstructed, reconstructed, acquired,

erected, installed

and

operated in

accordance with

the

accompanying

application,

certified

as being in

compliance

with

the applicable regulations

Federal

agencies andthe general policies of

the

United

States for cooperation

with

the States In

the

prevention

and

abatement of

water pollution

air pollution under

the Federal

Water Pollution Control Act,

amended (33 U.S.C.

1251

at seq.)

or the Clean

Air Act,

amended

(42 U.S.C.

1857 at

This

certification is based

facts furiiished

the applicant,

and

valid

for pusposes of

section

169

only

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

Decatur, IL 62526

2. EMPLOYER

IDENTIFICATION

NUMBER

37-1385459

PERSON

AUTHORIZED

RECEIVE

CERTIFICATION:

SAME

Donna Redmon

ADDRESS

(Street,

City, State, Zip

Code)

1000 Louisiana, Ste 5800

Houston, TX

77002

TITLE

TaxManager

DESCRIPTION OF CONTROL FACILITY

Refurbishment of the Vermilion Power Station Unit 2 electrostatic precipitator to improve operation and

reliability.

The refurbishment includes:

Replacement of the collectorplates, emitting electrodes, and mechanical rapper systems.

5. LOCATION

OF CONTROL

FACILITY

(Street, City, State,

Zip

Code)

Power Plant Road, Oakwood, IL 61858

6. EFFLUENT

DISCHARGED TO

N/A

7.ThE

CONTROL FACILITY

IDENTIFIED HEREIN

DOES

DOES NOT GENERATE PROFITS THROUGH

THE

RECOVERY

AND

SALES

OF WASTES, OR OTHERWISE.

8.ThE

CONTROL FACILITY

1DENTIFIED HEREIND

IS NOT A BUILDING THE ONLY FUNCTION

OF WHICH

THE

ABATEMENT OR

CONTROL

OF POLLUTION, AS

DETERMINED

IN ACCORDANCE

WITH SECTION

i.169.2

(2)

(I)

OF THE

INCOME TAX

REGULATIONS.

A. THE

CONTROL FACILITY

IDENTIFIED

HEREIN

IS USED ONLY IN

CONNECTION WITH

PLANTS OR PROPERTIES ThAT WERE IN

SERVICE ON

BEFORE

DECEMBER

31.

1975

100

OFTHE AMORTIZABLE

BASIS OFTHE FACILITY

IS ALLOCABLETO

ITS USE

CONNECTION WITH PLANTS

PROP.

ERTIES THAT WERE

IN SERVICE

ON OR

BEFORE

DECEMBER 311975.

so.

A. THE

CONTROL FACILITY PERFORMS NO

FUNCTION

ADDITION TO THE

ABATEMENT OR CONTROL OF POLLUTION.

THE AMORTIZABLE

BASIS OF THE

CONTROL FACILITY

IS ALLOCABLE TO THE

ABATEMENT OR

CONTROL OF

POLLUTION.

ISSUED

THIS

OF_________________

SIGNATURE

STATE CERTIFICATION

NUMBER

TITLE

EPA

Form

3300—3

(8—77)

u.a.

GOVEFtMMENT

PRINTING

OFFICE:

1077—729—018

ENVIRONMENTAL

PROTECTION AGENCY

APPLICATION

FOR CERTIFICATION OF POLLUTION CONTROL FACILITY

(Pursuant

Section 169 of the Internal Revenue Code of 1954, as amended)

Form Approved

0MB

No.

158—

R0013

CERTIFICATION

MAY

MADE

UNLESS

COMPLETED

APPLICATION

FORM

HAS

BEEN

RECEIVED

(26

U.S.C.

§169;

40 C.F.R.

PART

2O)~IF

CLAIM

BUSINESS CONFIDENTIALITY

ACCOMPANIES

THIS

INFORMATION WHEN

IT IS

RECEIVED

EPA,

MAY BE MADE AVAILABLE

THE PUBLIC

EPA

WITHOUT FURTHER

NOTICE.

INFORMATION COVERED

BY A CLAIM

OF CONFIDENTIALITY

WILL

BE DISCLOSED

EPA

ONLY TO THE EXTENT,

AND

MEANS OF THE PROCEDURES, SET

FORTH IN

TITLE 40,

CODE OF FEDERAL

REGULATIONS,

PART 2,41

C.F.R. 26902

seq..

SEPTEMBER

1, 1976.

BUSINESS

CONFIDENTIALITY

CLAIM COVERING

ALL

PART

THE

INFORMATION

FURNISHED

OR WiTH

THIS

APPLICATION

MAY

ASSERTED

PLACING

(OR ATTACHING

TO) THE

INFORMATION AT THE

TIME

SUBMITrED

EPA,

A COVER SHEET

STAMPED

TYPED

LEGEND, OR

OTHER

SUITABLE

FORM

OF NOTICE

EMPLOYING

LANGUAGE SUCH AS

“TRADE

SECRET,”

“PROPRIETARY,” OR

“COMPANY

CONFIDENTIAL.” ALLEDGEDLY

CONFIDENTIAL PORTIONS OF OTHERWISE

NON-CONFIDENTIAL

DOCUMENTS

SHOULD

CLEARLY

IDENTIFIED, AND

MAY

SUBMITTED

SEPARATELY

FACILITATE

IDENTIFICATION

AND

HANDLING

EPA.

THE

APPLICANT DESIRES

CONFIDENTIAL

TREATMENT

ONLY UNTIL

A CERTAIN

DATE

OR UNTIL THE OCCURRENCE OF A CERTAIN EVENT, THENOTICE SHOULD SO STATE.

Application

hereby

made

for

certification

the

pollution

control

facility

described

herein.

The

following

information

submitted

accordance

with

provisions

Part

Title 40

the

Code of Federal Regulations

and

the

best

of my

knowledge and belief is true and correct.

APPLICANT

Dynegy Midwest Generation, Inc.

DATE

April 22, 2003

SIGNATURE

J~”\

STREETADDRESS,CITY,STATE,ZIPCODE

1000 Louisiana, Suite 5800

-Iouston,

Texas

77002

TITLE

Director, Environmental

NOTE:

READ ACCOMPANYING INSTRUCTIONS CAREFULLY

PRIOR TO COMPLETING

FORM.

EPA

Form

3300—1

(Rev.

8—77)

PREVIOUS

EDITION

OHSOLETE

PAGE

ORIGINAL

U.S.

GOVERNMENT

PHINTING

OFFICE:

1977~729—6tQ

Form Approved

0MB No. 158—~0O13

SECTION A

IDENTITY AND LO’ATION

OF CONTROL

FACILITY

FULL BUSINESS

NAME OF

APPLICANT

Dynegy Midwest Generation, Inc.

TYPE

OF OWNERSHIP

INDIVIDUAL

OTHER

(Describe)

PARTNERSHIP

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 TO RECEIVE CERTIFICATION

(Name

and

Title)

Donna Redmon

TaxManager

ADDRESS

(Street,

City,

State,

Zip

Code)

1000

Louisiana,

Ste 5800

,Houston,

77002

BUSINESS NAME OF

PLANT

(Ifdifferent from Item

1) (Street,

City,

State, Zip Code)

APPLICANT’S

EMPLOYER

Vermilion Power Station

IDENTIFICATION

NO.

Power PlantRoad, Oakwood, IL 61858

37-1385459

SECTION

DESCRIPTION OF CONTROL FACILITY

DESCRIBE THE

FACILITY

FOR WHICH CERTIFICATION

IS SOUGHT.

INCLUDE TYPE

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 2 electrostatic precipitator to improve operation and

reliability.

The refurbishment includes:

• Replacement of the collector plates, emitting electrodes, and mechanical rapper sysfems.

IS FACILITY

IN OPERATION?

IF “YES”

DATE

FACILITY

IF “NO” DATE FACILITY

FACILITY

CONSISTS

OF A

WAS PLACED IN OPERATION

ISEXPECTEOTO

BUILDING.

IS ITEXCL1.~IVE-

EVES

ONO

PLACED

OPERATION

FOR CONTROLOF POLW-

January 2001

TION?

YES

DOES THE

FACILITY

(installed after December 31, 1975

ONLY)

AFFECT THE

OPERATI

UN IT

(of

the plant or

other

property

connec-

tion with

which the facility

is-used)

MOST DIRECTLY

ASSOCIATED WITH THE

FACILITY

IN ANY

OF THE

FOLLOWING

WAYS?

INCREASE THE

OUTPUT OR

CAPACITYDYES

ENo

EXTEND

THE USEFUL

LIFE?

YES

REDUCE THE TOTAL OPERATING

COSTS?

YES

IF THE

ANSWER TO ANY OF

THE ABOVE

IS “YES”

IS THE

PERCENTAGE

BY WHICH THE

OPERATING

UNIT WAS EFFECTED

D5OROLESS

IF NONE

OF THE

FOREGOING

INCREASES, EXTENSIONS,

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

DESCRIBE PROCESS OR

ACTIVITY

CONNECTION WITH WI-HCH-F~-ClLITYIS OR WILL

USED.

Electric Generating Unit

STANDARD

INDUSTRIAL

CLASSIFICATION

(SIC) CODE NUMBER

4911

DATE THAT

EACH

PLANT

OTHER PROPERTY

~NNECTiON

WITHWrICH FAC1UTY IS

WILL

BE tSED,

~MMrIcE

OPERATION.

PLANT OR

PROPERTY

DATE

Vermilion Power Station, Unit 2

November

1956

EPA

Form

3300—1

(Rev.

8—77)

ORIGINAL

PAGE 2 OF 5

U.S.

GOVERNMENT

PRINTING

OFFICE:

‘577-.725..ezO

Form Approv.d

0MB No.

158

—R0013

SECTION C

DESCRIPTION OF COMMERCIAL PROCESS

OR ACTIVITY

4A.

FACILITY

OR WILL

USED

CONNECTION

WITH MORE THAN

ONE PLANT OR PROPERTY,

AND

ONE OR

MORE

OF THE

PLANTS OR

PROPERTIES

IN CONNECTION

WITh

WHICH THE

FACILITY

IS OR

WILL

USED WAS NOT IN

OPERATION PRIOR

JANUARY

1,1976,

STATE

THE PERCENTAGE

OF THE

COST

OF FACILITY

WHICH

IS ALLOCABLE

TO THE PLANT(S) OR

PROPERTY(IES)

OPERATION

PRIOR

THAT

DATE.

Nfj~

4B.

DESCRIBE THE

REASONING

AND

FURNISH

THE

DATA

USED

ARRIVE

AT THE

PERCENTAGE GIVEN

RESPONSE

ITEM

4(A).

N/A

BA.

FACILITY PERFORMS

A FUNCTION

FUNCTIONS

ADDITION

TO THE ABATEMENT OF

POLLUTION,

STATE

THE

PERCENTAGE

OF THE

COST

OF FACILITY

ALLOCABLE

TO THE

ABATEMENT OF POLLUTION.

N/A

5B.

DESCRIBE THE

REASONING AND

FURNISH

THE DATA USED

ARRIVE

ATTHE

PERCENTAGE GIVEN

RESPONSE

ITEM 5(A).

N/A

SECTION

WASTEWATER CHARACTERISTICS (To be

completedonly

connection

with

facilitlee

for

the

control of water pollution)

DESCRIBE THE EFFECT-OF POLLUTION

CONTROL

FACILITY IN TERMS OF QUANTITY

AND QUALITY OF

EMISSION

AND

OF WASTES OR

BY-PRODUCTS REMOVED, ALTERED.

DISPOSED OF, OR PREVENTED.

FEASIBLE, ATTACH

PROCESS FLOW OR

SCHEMATIC DIAGRAM

WITH MATERIAL

BALANCES OF THE WASTE

OR WASTEWATER

STREAM

DISCHARGE. REPORT EITHER

ON ACTUAL

BASIS OR,

FACILITY

IS NOT YET IN OPERATION,ON

DESIGN

-BASIS

(Use Standard Units

pounds/gilion,

grams/liter,

ppm, etc.).

HOURS

PLANT OR

PROPERTY

IN OPERATION:

Per

Month:

Mm.

Max.

Avg.

•

Per

Year:

Mm.

Max.

Avg.

WASTEWATER

DISCHARGE

(A)

GALLONS

PER

MINUTE,(B)MIL.

LIONS

GALLONS

WITHOUT

POLLUTION

CONTROL

FACILITY

WITH

POLLUTION

CONTROL FACILITY

Mm.

Max.

Avg.

Mm.

Max.

Avg.

Mm.

Max.

—

Avg.

‘

Mm.

Max.

Avg.

POLLUTANTS

WASTE PRODUCTS

3.a

Mm.

Max.

Avg.

Mili.

Max.

—

Avg.

3.b

Mb.

Max.

Avg.

Mm.

Max.—

Avg.

3.c

Mm.

Max.

Avg.

Mm.

Max.

Avg.

3.d

Miii.

Max.

Avg.

Mm.

Max.

Avg.

3.0

Mm.

Max.

Avg.

Mm.

Max.

Avg.

3,f

Miii.

Max.

Avg.

Mm.

Max.

Avg.

3.g

Miii.

Max.

Avg.

Miii.

—

Max.

Avg.

3.h

Miii.

Max.

Avg.

Miii.

Max.

Avg.

3.1

Miii.

Max.

Avg.

Mm.

Max.

Avg.

3.j

Mm.

Max.

Avg.

Mm.

Max.

Avg.

EPA

Form 3300—1

(Rev.

8—77)

PAGE 30F5

ORIGINAL

U.S.

GOVERNMENT

PRINTING

OFFICE:

I977_72S.~t2I

Form

Approved-

0MB

No. 158—H

0013

DESCRIBE

METHOD

(GRAB OR COMPOSITE)

AND

FREQUENCY OF SAMPLING

AND METHODS

USED TO DETERMINE

QUANTIT

IES

POLLUTANTS.

5.IS

FACILITY

PRETREATMENT

FACILITY

TO PREPARE WASTEWATER

FOR RECEIPT

BY ANOTHER

FACILITY,

PUBLIC

PRIVATE, FOR

FURTHER TREATMENT?

IF “YES”, SKIP ITEMS 6,7 AND 8 AND

IDENTIFY

RECEIVING FACILITY.

YES

IDENTIFY

THE

BODY OR

STREAM OF

WATER

INTO WHICH

WASTEWATER

FROMTI-IE PLANT OR

PROPERTY,

CONNECTION

WITH WHICH THE

FACILITY

IS USED, IS OR WILL BE

DISCHARGED.

N/A

DESCRIBE

LOCATION OF

DISCHARGE

OR OUTFALL WITH RESPECT TO RECEIVING

WATERS.

IS THE RECEIVING BODY

OR STREAM

OF WATER

A NAVIGABLE

WATERWAY OF THE

UNITED STATES ORATRIBUTARY

ThEREOF?

DYES

“NO,”

PROCEED TO

ITEM 9.

IF “YES”

HAS A

U.S. ARMY CORPS OF

ENGINEERS DISCHARGE PERMIT

BEEN APPLIED FOR?

YES

IF “N07

EXPLAIN,THEN

PROCEED TO ITEM 9.

IF ANSWER TO ITEM BA IS “YES”

HAS

U.S.

ARMY CORPS OF

ENGINEERS

DISCHARGE-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

EMISSION CHARACTERISTICS (To be completed

only in

connection

with

facilitiea

for the

control of air

pollution)

DESCRIBE THE EFFECT OF POLLUTION CONTROL FACILITY

IN TERMS OF QUANTITY AND QUALITY OF EMISSION AND

OF EMISSION AND OF WASTES

OR BY-PRODUCTS

REMOVED, ALTERED, DISPOSED OF, OR PREVENTED.

IF FEASIBLE,

ATTACH PROCESS FLOW OR SCHEMATIC DIAGRAM WITH MATERIAL BALANCES OF POLLUTANTS IN THE EMISSION

STREAM.

REPORT EITHER ON ACTUAL BASIS, OR, IF

FACILITY IS NOT YET iN OPERATION, ON

DESIGN

BASIS.

HOURS PLANT

PROPERTY

OPERATION:

Per Month:

Mbn.

Max.

....Z~±..

Avg.

Per

Year:

Mm.

790

Max.

7,890

Avg.

5,900

POLLUTANTS TO

BE CONTROLLED

(Specify each)

Particulates

VOLUMETRIC

FLOW

RATE

OF EM

IS-

SION

(actual cubic

feet/minute)

WITHOUT POLLUTION CONTROLFACILITY

WITH

POLLUTION CONTROL FACILITY

296,533

355

Mbn.......Max...............Avg..........

296,533

355

Miii

Max._Avg._at

CONCENTRATION

(in volume

gaseous components)

Mmn._Max._Avg.............at.................

°F

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

—

°F

Mm..

..Avg..___at___.~..

°F

Mmn._Max._Avg._at

°F

Min._Max._Av9._...~...at_____.

°F

Mbm_Mex._......,Avg._at_

Min._Max.._.Avg._at...._........

°F

Mmn._Max.,...._....Avg._bt

°F

CONCENTRATION

(i1rains/cubic

feet

particulate

CONCENTRATION

(grains/cubicfeet of

any

specific

particu.

laze

t,ste1 in

E-2abdw~!

1.98

355

Min............. Max..

.Avg._......

at—...—.-... °F

Mun._Max.____..

Avg.._._.....

°F

0.050

355

Mun._

Max._Avg._

—

°F

Mun._

Max.

—

°F

EPA

Form 3300—I

(Rev.

8—77)

PAGE 4 OF

ORIGINAL

~t U.S.

GOVERNMENT

PRINTING

OFFICE:

I977—72a—62z

Form Approved

0MB

No.

158—90013

DESCRIBE METHOD OF

DETERMINING

RATES, CONCENTRATION

AND CHARACTERISTICS

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.

The minimum, maximum, and average were taken from the three test runs.

IDENTIFY

APPLICABLE STATE

AND

LOCAL AIR

POLLUTION

CONTROL REQUI REMENTS

AND STANDARDS.

Illinois Administrative Code 212

SECTION

COST INFORMATION

(SeeNote to

instructiom

for this section)

IS THERE ANY BY-PRODUCT OR

MATERIAL

WHICH, WITHOUT THE

CONTROL FACILITY.

WOULD

 BE LOSTAND WHICH IS

RECOVEREDTHROUGHTIIE

USE

OFTHE FACILITY?

DYES

ONO

IF YES, IDENTIFY

INDICATE

THE

DISPOSITION

EACH TYPE

RECOVERED MATERIAL,

INCLUDING

APPLICABLE,THE SALE OR

SIMILAR

DISPOSITION

RECLAIMED

OR RECOVERED

MATERIAL TO

INDUSTRIAL WASTE

RECOVERY

FIRMS OR OTHERS.

2. ANNUAL COST

RECOVERY

A. MATERIAL RECOVERED AND SOLD

$

N/A

B. OTHER

N/A

C. TOTAL

N/A

3. TOTAL AVERAGE ANNUAL MAINTENANCE AND OPERATING COSTS

(Not apphcable ifno cost recovery Li reported in Item 2)

N/A

EPA

Form

3300—1

(Rev.

8—77)

PAGE 5 OF 5

ORIGINAL.

~PR—1O—2003

THU

02:05

DYNEGY

NIDWEST

F~XNO.

2178723550

ILLINOIS POLLUTION CONTROL BOARD

April 3, 2003

DYNEGY MIDWEST GENERATION, LLC

)

(Refurbished Electrostatic

Precipitator Unit 2

)

(Property Identification Number -17-20-300-

)

006-0080)),

)

Petitioner,

)

?CBO3-173

)

(Tax Certification)

TLTJNOIS ENVIRONMENTAL

PROTECTION AGENCY,

)

Respondent.

)

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

OnMarcli 31, 2003, the fl.linois Environmental Protection Agency (Agency)

recommended that theBoard certify certainfacilities ofDynegy Midwest Generation, LLC

CDynegy

Midwest) as “pollution control facilities” forpreferential tax treatment under time

• Property T~x

Code.

ILCS 200/11-5

et.~eq.

(2002).

The Agency filed therecommendation

underPart 125 ofthe Board’s procedural ruies.

fT. Adrn. Code 125.

In this order, the Board.

describes te

legal framework for tax ceitiflcations, discusses the Agency’s recornniendation,

and ceth..fies that Dynegy Midwest’s facilities are pollution control facilities

LEGAL FRAMEWORK

Under theProperty Tax Code, “i)t

is the policy ofthis State that pollution control

facilities si ould be valued,

at 33

1/3

ofthe fair cash value oftheir economicproductivityto

theirowners.”

ILCS

200/11-5

(2002);

see

also 35

111. Adrri. Code 125.200(a)(2).

“Fortax

purposes,

pollution control facilities shall be certified as such by the Pollution ControlBoard and

shall

be assessedby the Department of Revenucj.”

1LCS 200/11-20(2002);

see

also

35111.

Adm. Code 125.200(a).

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

application

for tax certification to the Agency.

35111. Adm.

Code

125.202.

Ifthe Agency

receives at~x

certification application, the Agency must file with the Board a recommendation

the application, unless the applicant withdraws the application.

Ill. Adin. Code

125.204(a).

Among

oth~r

things, the Agency’s

filing must recommend that the Board issue or deny tax

—

certification.

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

If theBoard finds “that the claimed facility or

relevant

portion thereofis a pollution control facility.

thePollution Control Board...

shall

enter ~ finding arid issue a certificate to that effect.”

35 ILCS 200/11-25 (2002); see

also 35

111.

Adm.

Code ~125.2l6(a).

fiPR—1O-2003

THU

02:05

P11

DYNEGY

tIIDWEST

FI~XNO.

2178723550

AGENCY RECOMMENDATION

The Agency states

that itreceived a tax certification application from Dynegy Midwest

on September 16, 2002.

Agency Recommendation (Agency Rec.) at 1.

On March 31, 2003, the

Agency filed a recommendation on the application with the Board.

The Agency’s

recommendation identifies the facilities at issue:

Refurbishment ofElectrostatic Precipitator

Unit 2.

Agency Rec. at 1.

The Agency’s recommendation further describes the facilities:

for

particulate collection and operation.

Id.

at 1-2.

The Agency’s recommendation also identifies

the location ofthe facilities:

PowerPlant Roa&

Oakwood,, Vermilion County.

Id. at

~The Agency recommends that the Board certit~’

that the identified facilities are pollution

control facilities as defined in Section 11-10 ofthe Property Tax Code

(35

ILCS 200/11-10

(2002)) because the primary purpose ofthe facilities is eliminating, preventing, orreducing air

pollution.

Agency Rec. at 2.

TAX CERTIFICATE

TheBoard finds and certifies that Dynegy Midwest’s facilities identified in this order are

pollution control facilities under theProperty Tax Code.

35 ILCS 200/11-10 (2002).

Under

Section 11-25 ofthe PropertyTax Code, the effective date ofthis certificate is “the date of

application for the certificate or the date ofthe construction ofthe facility, whichever is later.”

ILCS 200/11-25

(2002);

see also

Ill. Mm. Code

125.216(a).

Section 125.216(d) ofthe

board’sprocedural

rules states that the Clerk “will provide the applicant and theAgency with a

copy

ofthe Board’s order setting forth

theBoard’sfindings and cerhjIcate.

any.”

III. Adm.

Code 125.216(d) (quoting in italics

1TLCS 200111-30 (2002)).

The Clerk therefore will

provide DyziegyMidwest and the Agency with a copy ofthis order.

ITLS SO ORDERED.

Section

1(a) ofthe Environmental ProtectIon Act provides that fmaJ Board ordersmay

be appealed directly to the Illinois Appellate Court within 35 days after theBoard serves the

order.

415

JLCS 5/41(a) (2002);

see also

35 Ill. Adm. Code 1O1.300(d)(2), 101.906,

102.706.

lIlin0is Supreme Court Rnle 335

establishes filing requirements that apply whenthe Illinois

Appellate Court? by statute, directly reviews administrative orders.

172

III. 2d R. 335.

The

Board’s procedural rules provide that motions forthe Board to reconsider ormodify its final

orders

maybe filed with the Board within 35 days after the order is received.

35 El. Mm. Code

101.520;

see al.~ô

flI. Adm.

Code 101.902,

102.700,

102702.

~PR-lO-2O03THU

02:06

DYNEGY

MIDWESI

F~XNO.

21idi~bbu

t~.

Dorothy M. Gunn. Clerk ofthe flhinois Pollution Control Board, certify that the

Board

adopted the above order on April 3, 2003, by a vote of 7-0.

Dorothy M. Ounn,, Clerk

Illinois Pollution Co~itroJ

Board

PROOF OF SERVICE

the

undersigned,

certify

that

have

served

the

attached

APPEARANCE

AND

RECOMMENDATION 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 it by First Class Mail from Springfield, Illinois on October

14, 2003, with sufficient

postage affixed.

Robb H. Layman

Special Assistant Attorney General

ARDC #6205498

THIS FILiNG IS SUBMITTED

ON RECYCLED PAPER