ItECEIVEI)

CLERK’S

~

BEFORE THE ILLiNOIS POLLUTION CONTROL BOARD

DEC

3

1

2003

STA1E

OF iLUi’~ugs

Pollution

Control Board

MIDWEST GENERATION, LLC

-

COLLINS GENERATING STATION,

)

Petitioner,

)

)

PCB

t-________

v.

)

(Permit Appeal

—

Air)

)

ILLINOIS ENVIRONMENTAL

PROTECTION

AGENCY,

)

Respondent.

NOTICE OF FILING

To:

Illinois

Environmental Protection

Agency

PLEASE TAKE NOTICE that

I have today filed with

the Office ofthe clerk ofthe

Pollution

Control

Board

the Appeal of CAAPP Permit of MIDWEST GENERATION,

LLC

—

COLLINS GENERATING STATION, a copy of which

is herewith served

upon you.

Kathleen

C.

Bassi

One of the

Attorneys

for Petitioner

DATE:

December 31,

2003

SONNENSCHEIN NATH

& ROSENTHAL LLP

Kathleen

C.

Bassi

Mary A.

Gade

8000

Sears Tower

233

South

Wacker

Drive

Chicago, Illinois

60606

312-876-7403

FAX:

312-876-7934

kbassi@sonnenschein.com

This document is

printed on recycled paper.

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~itECEjvEn

CLERK’S

flcnrr

DEC

312003

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

SlATE OF

ILUPOJiS

Pollution

Control Board

MIDWEST GENERATION, LLC

-

)

COLLINS GENERATING STATION,

)

Petitioner,

)

)

PCB~-______

v.

)

(Permit Appeal —Air)

)

ILLINOIS ENVIRONMENTAL

PROTECTION AGENCY,

)

Respondent.

)

APPEAL OF CAAPP PERMIT

NOW

COMES Petitioner, MIDWEST GENERATION, LLC

-

COLLINS

GENERATING STATION

(“Petitioner” or “Collins”), pursuant to Section 40.2 of the Illinois

Environmental

Protection Act

(“Act”) (415 ILCS

5/40.2)

and 35

Ill.Adm.Code

§

105.300

et seq.,

and requests a hearing before the

Board to contest the

decisions contained in

the permit

issued

to

Petitioner on

November

25,

2003,

under the Clean Air Act Permit

Program (“CAAPP” or “Title

V”) set forth

at

Section

39.5

ofthe Act (415

ILCS

5/39.5).

Petitioner requests that the Board

stay the effect of the

entire permit, pursuant to 35

I!l.Adm.Code

§

105.304(b) during the

pendency of this permit appeal.

In support of this Petition, Petitioner states as follows:

Back2round

I.

On November

15,

1990,

Congress amended the Clean Air Act (42 U.S.C.

§~

7401-7671q) and included in the amendments at Title V a requirement for a national operating

permit program.

The Title V program was to be implemented by states with

approved programs.

Illinois’

Title V program, the CAAPP, was fully and finally

approved by the U.S.

Environmental

Protection Agency (“USEPA”) on

December 4,

2001

(66 Fed.Reg. 62946).

The

Illinois

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Environmental Protection Agency (“Agency”) has had the authority to issue Title V permits

since at least March

7,

1995, when the state was granted interim approval of its CAAPP (60

Fed.Reg.

12478).

Illinois’

Title V program is set forth at

Section

39.5 of the Act, 35

lll.Adm.Code

201.Subpart F, and

35 lll.Adm.Code Part 270.

2.

The

Collins Generating Station, Agency ID. No.

063806AAF,

is an electric

generating station

owned by Collins Trust I, Collins Trust II, Collins Trust III, and Collins Trust

IV

and operated by Midwest Generation, LLC —Collins Generating Station.

The Collins

electrical generating

units (“EGUs”) went online between

1977 and

1979.

The

Collins

Generating

Station

is

located at 4200

Pine Bluff Road, Morris, Grundy County,

Illinois

60450-

9558, within the Chicago ozone nonattainnient area.

Collins

can generate approximately 2790

megawatts, largely distributed in the Chicago area.

The electricity peak demand

in the Chicago

area

is approximately 23,000 megawatts, which usually occurs on the hottest summer days.

Collins can provide

10

of this peak load demand.

Collins employs approximately

100 people.

3.

Collins operates

five

natural gas- and/or oil-fired

boilers to

generate electricity

(the electrical

generating

units) and two

natural gas-fired boilers rated

at

less than 250

mmBtu/hr.

to provide low pressure steam for heating and auxiliary steam needs at the station

(“non-EGUs”).

Also

identified as a significant emission unit at the

site is a

1,000-gallon

underground storage tank used to

store gasoline used by plant vehicles,

largely on site.

The

gasoline is dispensed

from this tank.

4.

Collins

is a major source subject to Title V.

Its average emissions for 2001

and

2002 were approximately

25

tons of volatile organic compounds (“VOC”) (less than

15

tons

during the ozone season),

1,584 tons of nitrogen oxides C’NOx”),

3,007 tons of sulfur dioxide

(“SO2”), and

325

tons of particulate matter (“PM”), as well as other pollutants in less

significant

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amounts.

Collins is subject to the Emissions

Reduction Market System

(ERMS) but has limited

its emissions of VOC to

less than

15

tons per ozone season and

so is not required to hold and

surrender allotment

trading units (ATUs).

The EGUs at Collins are

subject to both of the NOx

reduction programs at 35

Ill.Adm.Code 217.Subparts V and W (“0.25 averaging program” and

“NOx tradingprogram,” respectively).

Collins is subject to

the federal

Acid Rain program at

Title IV ofthe Clean Air Act and was issued

a Phase II Acid Rain Permit on December

5,

1997.

The Collins Station

is also subject to the New Source

Performance Standards (“NSPS”) found at

40 CFR

60.Subpart D.

5.

NOx emissions

from both the EGUs

and the non-EGUs at the Collins Station are

controlled

by low

NOx

burners.

Emissions of SO2

from the EGUs are controlled

by limiting the

sulfur content of the

fuel

used for these boilers.

VOC emissions from

the gasoline storage tank

are controlled by use of a submerged

loading pipe.

Additionally, bulk distributors of the

gasoline stored

in the

tank

are required by rule

(35

Ill.Adm.Code

§

218.584) to

employ Stage I

vapor recovery.

6.

On

September

7,

1995, the

Agency received the

original application

from

Petitioner for a Title V permit for the Collins Generating Station, assigned Application No.

95090079.

Petitioner updated this application in early 2003.

The

Title V application was timely

submitted and updated, and Petitioner requested and was granted an application shield, pursuant

to Section

39.5(5)(h).

Petitioner has paid fees

as set forth

at Section

39.5(18) of the Act since

submitting the application for a Title V permit for the Collins Generating Station.

Collins’ state

operating permit has continued in

full

force and effect since submittal of the Title V application,

pursuant to

Section 9.lffl ofthe Act.

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7.

The Agency issued a draft/proposed permit for both the public’s and USEPA’s

review on October

8, 2003.

That review ended November 22, 2003.

Petitioner submitted

comments to the Agency on November 4, 2003, that certain terms

and conditions

included in the

draft/proposed permit were not acceptable to Petitioner.

Petitioner’s comments are included

herewith at Attachment A.

The subject Title V permit was issued

to Petitioner on November 25,

2003.’

Although many of Petitioner’s comments were addressed by the Agency in the final

permit, it still

contains terms

and conditions that are not

acceptable to the Petitioner, including

provisions that

are contrary to applicable

law.

It is

for this

reason that Petitioner hereby appeals

the permit and

requests that the Board review the permit and order the Agency to correct and

reissue the permit as appropriate.

Issues on Appeal

8.

While both the Agency and Petitioner agree that diesel fuel unloading at the

Collins

Station

is

an insignificant activity,

it is included in the permit at Condition

3.1.1,

indicating that

it

was identified as an insignificant activity determined by the Agency.

Actually,

Petitioner determined that diesel

fuel unloading is an insignificant activity,

made the requisite

demonstration, and

requested that

it be treated as such in its permit application.

Therefore,

it

should be included

at Condition 3.1.2, rather than 3.1.1.

9.

Condition

4 identifies the pollution control device for the 1,000-gallon gasoline

storage tank as a low NOx burner.

It should be a submerged loading pipe, as requested by

Petitioner.

A

low NOx burner is not an appropriate control device for an underground tank used

to

store gasoline.

(See

USEPA/Region

5’s Permits website at

http.//w~v~v.epa.gov/region5/air/permits/ilonline.httn 3

“Title V Permit Records” 3

“Midwest Generation EME,

LLC” for the source

located at 4200 Pine Bluff for the complete

“trail” of the milestone action dates for this permit.)

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10.

Conditions 5.2.2(b), 7.l.4(b)(i),

7.2.3(b), and 7.2.4(b) address the opacity

limitation applicable to the boilers at Collins.

These conditions require compliance with 35

IlI.Adni.Code

§

212.1232,

“Visible Emissions Limitations for All Other Emission Units.”

This

section imposes an opacity limitation of 30.

As an NSPS source, the applicable regulation is

§

212.122,

“Visible Emissions Limitations for Certain Emission Units

for Which Construction or

Modification Commenced on or After April

14,

1972.”

The opacity limitation for such sources

is 20.

References to compliance with

§

212.123

should be changed to

§

212.122 throughout

the permit.

11.

The Agency has required Petitioner to provide an Episode Action

Plan at

Condition 5.2.6.

In

its comments to the Agency, Petitioner requested the addition of a “Note”

saying,

“The Agency has determined that an Episode

Action Plan

is not required

for the Collins

Generating Station

(reference June 23,

1988, letter from Terry

A. Swcitzer ofthe Illinois EPA to

CL.

McDonough of Commonwealth Edison, the previous owner).”

A

copy of this letter is

included

herewith as Attachment

3

to Attachment A.

Part 244 of the Board’s Air Pollution

Control regulations were

last amended in

1992 (R91-35).

The most recent action prior to those

amendments was in

1982

(45

PCB

577), six years before the Agency’s letter to the previous

owner ofthe Collins Station.

Section 244.142, the applicability section, was not included in

either the

1992 or 1982 amendments to Part 244.

Therefore, the letter exempting the Collins

Station

from the applicability of Part 244

has not been affected by any regulatory changes

and is

still

valid for this site.

Further, Petitioner has received no notice from

the Agency indicating that

it has reconsidered the exemption and that the

1988 letterhas been rescinded as a result.

Mere

inclusion of a requirement

for an Episode Action Plan in Overall Permit Conditions that are

2

Hereinafter, citations to

35

1ll.Adm.Code will be

made by section number only.

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standard at

least for this

industry is insufficient notice.

The

proposed “Note” should be added to

the condition, clarifying that the Collins Station

is not required to develop or implement an

Episode Action

Plan pursuant to Part 244 ofthe Board’s regulations.

12.

Petitioner commented that

a statement limiting the applicability ofprovisions not

included in the permit be added

to Condition 5.3.

The statement requested by Petitioner was,

“Except as provided herein, this permit presents the entirety of requirements applicable to this

source

as of the

date of issuance.”

All

applicable requirements are to be

included in a Title V

perniit.

Petitioner’s requested statement reflects this goal of the Title V program.

Petitioner also

requested a “Note” indicating that specific

nonapplicability provisions

are included in Section

7.

Condition

5.3

is part of the Overall Source Conditions and would be superseded by specifics

included

for units

in subsequent conditions tailored to each unit.

Petitioner’s requested “Note”

clarifies this circumstance.

Petitioner requests that the Board order these changes to

Condition

5.3.

13.

Condition

5.8, titled “General Operational Flexibility/Anticipated

Operating

Scenarios,” says, “N/A.”

Petitioner, however, can operate

under several

different scenarios,

although they are apparently not categorized as “general” operating scenarios

by the Agency.

To

ensure that the Agency and public recognize that the Collins Generating Station may operate

under different scenarios, Petitioner requests the addition of the statement, “Operational

flexibility

is provided in

Section 7.”

Petitioner’s purpose in requesting the addition of the

language was to ensure that anyone who reads the permit understands that there are alternative

operating scenarios but that they are

addressed on

a unit-specific basis rather than in the Overall

Permit Conditions.

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14.

Illinois participates in the interstate NOx trading program administered by

USEPA in order to comply with a finding of a deficiency in Illinois’

state implementation plan

(“SIP”) for NOx.3

Participation in this program is authorized by Section 9.9 of the Act,

and the

specifics of the program applicable in

Illinois to EGUs

are set forth in the Board’s regulations at

Part

21 7.Subpart W.

The parameters ofthe

federal program, with which states must comply

in

order to participate in the program, are set forth at 40 CFR Part 96.~The Agency describes the

NOx trading program at Section

6.1

of the permit.

Petitioner requests that 40 CFR Part 96 be

added as

an authority or source ofthe requirement for the

NOx reduction

to be obtained through

participation

in the trading program.

Reference to Section

1 10(a)(2)(D) is not enough, as it

addresses only the necessity for reductions but not the specific means employed

here to obtain

those reductions.

In other words,

Section

1 10(a)(2)(D) ofthe Clean Air Act accounts for the

requirement that

Illinois obtain NOx reductions, but

40

CFR Part 96

accounts for the manner in

which

Illinois will obtain

the NOx reductions.

It is the manner by which

the reductions will be

obtained

that

is

the subject of Section

6.1

ofthe

permit.

15.

Although Condition 6.1.1

concludes with the statement, “Note:

This narrative

description of the NOx Trading Program

is for informational purposes only

and is not

enforceable,”

it is the only condition in thepermit that appears to imply that EGUs maytrade

with

other participants in the interstate program.

Petitioner requested in its

comments and

repeats that request in this Petition that

a clear statement authorizing it to participate in

a multi-

state NOx

emissions trading program be included in the third paragraph of Condition 6.1.1

and

This

is euphemistically referred to as the NOx

SIP call.

See

63 Fed.Reg.

57355

(October 27,

1998).

The actual finding of deficiency in Illinois and requirement that the SIP be

revised

are at 40 CER

§~

51.121 (b)(l) and (c) (63 Fed.Reg. 57491-92 (October 27,

1998)).

~ 40 CFR Part 97

is the program that

USEPA would apply directly to

states under certain

circumstances not applicable here.

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suggested that the following language be inserted after the

third sentence (counting the sentence

in parentheses as a sentence):

“In addition

to receiving allowances allocated by USEPA pursuant

to direction from

the Illinois

EPA, budget EGUs may also obtain

allowances through the open

market

trading system

established in 40 CFR Part 96.”

To ensure that the Collins Station

is

authorized to participate in

a multi-state trading program and to

inform anyone reading the

permit that the

NOx trading program referred to in Section

6.1

is a multi-state trading program,

Petitioner suggested

in its comments and

repeats its request in this

Petition that “participating in

the multi-state

trading system” be added to the

first sentence in the

fourth paragraph ofCondition

6.1.1, following “The number ofNOx

allowances available

for budget sources.”

16.

Petitioner commented that Condition 6.1.8(a)(vi) be revised as follows:

“In 2011

and annually thereafter, as provided by

35

IAC

2 17.764(e), an allocation ofNOx allowances based

on

the prior

operation ofthe

EGU during previous control periods,

as described

in

Condition

6.1 .8(b~,

and

a pro-rata share of any surplus NOx

allowances

in the NSSA following the allocation ofNOx

allowances to new budget EGU.”

Condition 6.1.8(b) describes how the number ofallowances to be allocated

for

a given year,

beginning

in 2011,

is to be determined.

Petitioner requests the

additional language to provide

clarity to the Condition.

17.

Condition 6.1.9

states that Petitioner is not eligible

to obtain NOx allowances

from the New

Source Set Aside (“NSSA”) for the budget EGU identified in Condition 6.1.2(a).

While this is

a true statement, Petitioner requests that

it be made clear that it would

be

eligible to

obtain allowances

from the NSSA

for any “new” units.

Petitioner suggests the following

language:

“New budget EGU that the Permittee may add to the source would be eligible

to

obtain NOx allowances

from the NSSA, as provided by

35

IAC 217.768.”

Petitioner notes that

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an increase in the megawatt capacity of an EGU would also be eligible for additional allowances

from the NSSA.

18.

Condition

7.1.4(0 requires the EGUs

to comply with the 0.25

NOx averaging

program.

The

0.25

averaging program requires that an EGU emit no more

than 0.25

lb

NOx/mniBtu during the

ozone season

(~

2 17.706(a)).

This is provided at Condition

7.1.4(f)(i)(A).

However, the regulations then provide that “nJotwithstanding

Section 217.706(a)

of this Subpart, the owners or operators ofEGUs

listed

in Appendix F of this Part.

.

.

may elect

to demonstrate compliance with this Subpart by averaging for the ozone

control period the NOx

emission rates

with any ECU listed

in

Appendix F

(~

217.708(a)).

Condition 7.l.4(f)ji)(B)

provides for averaging; however, it omits

the concept of“notwithstanding” that

is an integral and

important part of

§

217.708(a).

If an

ECU participates in an averaging program with other

EGUs,

it

is

not,

by itself; required to meet the 0.25

lb NOx/mmBtu.5

Addition of the word

or

at

the

end of Condition

7.1.4ffl(i)(A) would

address this deficiency in the permit and would

correctly reflect

the requirements of the

Board’s rules.

Petitioner requests

that the Board order

this amendment.

19.

Condition

7.1 .4ffl(i)(B),

in providing for averaging, is stated soniewhat

awkwardly.

The Agency wrote the condition to provide that Collins could average with other

boilers, other EGUs owned or operated by Midwest Generation, LLC, and authorized by the

Collins permit to participate in

a NOx

averaging program, including Collins

itself, or other EGUs

authorized to participate

in a NOx averaging program.

The boilers at Collins are not restricted

by the regulations to averaging only with boilers; they may average with any

EGU.

The

The exception to this statement is that each EGU participating in an averaging plan

must demonstrate individual compliance ifthe overall plan fails,

i.e.,

cannot demonstrate an

average of 0.25

lb NOx/mmBtu for the ozone season.

This is addressed in the regulations at

§

217.708(0 and in the permit at Condition

7.1 .4(f)(ii)(C)

(See

¶

21, below).

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Agency’s provision is that Collins boilers may average with EGUs

at other plants owned or

operated by Midwest Generation,

LLC, including Collins.

The Agency’s language is awkward

and unclear.

Finally, the Agency does not distinguish that the “other affected EGU” can be

owned and operated by companies other than Midwest Generation, LLC, which is a necessary

element of the program.

Petitioner requests that the language be revised as follows:

“.

.

.

(1) other affected boilers EGU at the Collins Generating

Station,

(2) other ECU owned and operated by the Pcrmittee at its

plants

in Collins, Fisk, Crawford, Waukegan, Powerton, Jolict,

and/or

Will County stations (ID 063806AAF,

031600AM1,

O3I600AIN, 097190AAC,

1798O1AAA,

197809AA0, and

1978 IOAAK, respectively), which are

also authorized by this

permit to participate in

a NOx averaging demonstration,

and (3)

other

ECU not owned and

operated by the Permittee that are

authorized to participate

in

a NOx averaging plan by

a CAAPP

permit or other federally enforceable permit issued

to the owner or

operator ofthose ECU.”

20.

In Condition

7.1 .4ffl(i)(B),

the Agency authorizes the other generating stations

owned or operated by Midwest Generation, LLC, to participate in a NOx averaging plan with the

EGUs

at the Collins Generating Station.

See

the language quoted above following the

parentheses:

“which are also authorized by this permit to participate in

a NOx averaging

demonstration.”

A permit issued

to the Collins Generating Station can apply g~yto the Collins

Generating Station.

The Collins permit cannot be used

to authorize activities

at

another plant.

Rather, permits issued

to the other plants must be used

to authorize activities at those plants,

including participation in a NOx

averaging program that includes the Collins Generating Station.

Petitioner requests that the clause be revised as follows:

“which are also

authorized by this thcir

respective permits

to participate in

a NOx averaging demonstration.”

21.

Condition

7.1 .4(f)(ii)(C) requires each EGU participating in

a NOx averaging

plan to comply with the 0.25

lb NOx/mmBtu seasonal average if the averaging plan

fails,

i.e.,

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does not demonstrate an

overall average of 0.25

lb NOx/mmBtu.

In including this condition in

the permit, the Agency cites to

§

2 17.708(g).

However,

§

2 17.708(g) addresses recordkeeping

requirements for participants in

a NOx averaging plan.

The correct citation

is

§

217.708(0,

which says, “If averaging is used to

demonstrate compliance with this Subpart, the effect of a

failure to demonstrate such compliance shall be that the compliance status ofeach ECU shall be

detemuned pursuant to Section

2 17.706(a)

as if the NOx emission rates of such EGUs were not

averaged.”

Petitioner requests that the Board

order this amendment to the permit.

22.

The parenthetical phrase “(low pressure)” should be added after “auxiliary boiler

mode” in Conditions

7.1 .6(d)(iii) and

7.1 .9(a)(vii)(A).

The description

is necessary to

identify

an alternative operating scenario applicable to the

EGUs,

It appears that the Agency did not

transfer complete information from the Title I permit

applicable to the EGUs.

Petitioner requests

that the Board order this amendment to the permit.

23.

There are a

number ofconditions

in which the cross-references are

incorrect.

Petitioner requests that they be

corrected as follows:

a.

Condition

7.1 .9(b)(iii)(B):

reference should be to

Condition

7.1 .4(a)(i)

rather than to

7.1 .4(a)(ii);

b.

Condition

7.1.12(a):

reference should be to

Condition 7.1.4(a)(ii) rather

than to

7.1 .4(a)(iii); and

c.

Conditions 7.2.3(b), 7.2.3(c), and 7.2.10(c)(iii):

reference should be to

Condition 7.2.4(a) rather than to 7.2.4(d).

24.

In Conditions 7.1 .9(c)(ii)(B), 7.1 .9(d)(iii)(B), 7.1.1 0(c)(iii)(*), and

7.1.1 0(d)(iii)(*),

the Agency refers

to 3-hour block averages for monitoring,

recordkeeping, and

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reporting.

However, the EGUs at the Collins Station are subject to the NSPS,

as discussed

above.

Therefore, the monitoring timeframes should be 3-hour rolling averages.

25.

From review of other permits

issued by the Agency,

it

appears that the Agency

relied

upon some formulaic approach to determining how quickly an EGU should be able to

return to normal operation after startup, based upon the type of boiler andlor

fuel used.

It

appears that the Agency did not rely upon

the number ofhours included in the permit

application, which, for Petitioner, is based

upon its actual experience and

good operating

practices.

In Condition 7.1.9(f)(ii)(C), the Agency allowed only

12

hours for the ECU to return

to

normal operation

following startup;

Petitioner demonstrated in its application that the

appropriate

length of time for these EGUs is

18 hours.

Petitioner requests that

it be

granted

18

hours to

return to

normal operation in

Condition 7.1.9(f)(ii)(C).

26.

Conditions 7.1 .lO(a)(ii) and 7.2.10(a)(ii) contain

the dates by which quarterly

reports are

to be submitted to the

Agency.

The quarterly reports are

due

a month following the

end of the

previous quarter.

Condition

8.6.1, part ofthe General Permit Conditions, allows two

months

following the end of the reporting period

for semi-annual report submittals.6

One month

is insufficient

time for Petitioner to submit its reports.

The new reporting requirements are quite

burdensome,

and

as much time as possible is necessary for Petitioner to develop, quality assure,

and

submit the reports.

The two-month period allowed at

Condition

8.6.1

is

a

more reasonable

timeframe, and Petitioner requests that the Submittal Deadlines in Conditions 7.l.10(a)(ii) and

7.2.lO(a)(ii) be changed from April30 to June

1, from July30

to September

1, from October30

to December

1, and

from January30 to March

1.

~Condition

8.6.1

does not apply to Permittee, because the semi-annual reporting

frequency provided

in this condition

is superseded by the quarterly reporting frequency of

Conditions 7.1.1 0(a)(ii) and 7.2.1 0(a)(ii).

This document

is printed

on recycled paper.

-

12-

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27.

Paragraph (c) should be

added to Condition 7.1.11, stating, “Pursuant to 40 CFR

266.108, this

source qualifies for a small quantity burner exemption.”

This is a

statement ofthe

requirements applicable to the EGUs and is properly contained in the condition addressing

“Operational Flexibility/Anticipated Operating Scenarios.”

Petitioner had requested, in its

comments,

that this

language be added as a “Note” to the condition.

It was not added at

all, and

Petitioner has since determined that inclusion of the language as a paragraph would be more

appropriate than as a “Note.”

Therefore, Petitioner requests

that the new condition

be added to

the permit.

28.

The boilers addressed in Section

7.2 of thepermit

are smaller boilers not used for

generating electricity.

They are used to generate low pressure steam for station heating and

auxiliary steam needs.

Petitioner requested in its comments and repeats in this Petition that the

Agency add the sentence “The boilers are not used to

generate electricity” to the condition,

following the first sentence,

to make it

clear that

these are not EGUs

and so are not

subject to any

requirements that are exclusive to

EGUs.

29.

In Condition 7.2.4(a), the year included in the date determining the applicability

of40 CFR 60.Subpart Db

should be

1984

rather than

1971.

30.

Petitioner requests that the submerged loading pipe

should be added as the

emission control equipment in Condition 7.3.2.

31.

Petitioner requests that the cross-references in Condition

8.5 be more refined to

reflect the actual

conditions in 8.6,

ratherthan the general

cross reference, to

clarify what is

applicable.

Petitioner requests that they be 8.6.3 and 8.6.4.

32.

Condition

9.2.3 precludes operation during malfunction and breakdown unless the

permit specifically provides

to the contrary.

The permit does,

and

so the Condition

is

This

document

is printed on

recycled paper.

-

13-

---

superfluous and potentially confusing.

Petitioner requests that

a statement recognizing the

authorization to operate during malfunction and breakdown that

is included in the body ofthe

permit be added to the

end of this condition:

“Such operation during malfunction or breakdown

is allowed by this permit.”

33.

USEPA states in its regulations or policies that its contractors are bound to the

same requirements as its “regular” employees with respect to the protection ofconfidential

business infonirntion

and conduct

at a plant site.

However, it is not clear that the Agency has

that

same policy or requirement.

Therefore,

Petitioner requests that the phrase “subject to

applicable Confidential Business

Infoniiation

claims and limitations and facility health and

safety rules,” be inserted following “Upon presentation of proper credentials and other

documents,” in Condition 9.3.

34.

The Agency uses two citation

formats in Condition 9.3:

“Section 39.5(7)(a)

and

(p)(ii) of the Act and

415

ILCS

5/4.”

The citation should be to

“Sections 4 and 39.5(7)(a)

35.

Condition 9.10.2

addresses emergencies at the plant and operations during the

continuation of the emergency.

Condition 9.10.2(a)(ii) specifically addresses how the plant

should be

operated

—

“properly”

—

during the emergency, in order for the Permittee to

successfully avail itself of the affirmative defense provided by Condition 9.10.2.

Emergency

conditions are

abnormal.

“Proper” operation ofthe

station occurs during normal conditions.

That the conditions are an

emergency and therefore abnormal suggests that “proper” operation,

i.e.,

how

the plant

is operated

under normal conditions,

is not possible during the

emergency.

The phrase

in the condition “at the time” is vague and requires qualification.

Petitioner requests

that the

condition be revised as

follows:

“The permitted source was~

at the time the emergency

commenced, being properly operated.”

This document

is printed

on recycled paper.

-

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36.

Technically, the Agency can

open and correct a permit that

is based

on

misinformation, be it

willful or inadvertent.

Revocation, without including the concept of

reissuance, of a permit suggests that

the permittee will not have a permit at all.

As

stated

currently,

Condition

9.12.3 allows the Agency to revoke

—

the word

reissue

is omitted

—

and

effectively terminate

the permit for~y

submission of misinformation.

Where revocation of the

permit,

thus effectively the shutting down the

facility, is the only action

that the Agency allows

itself,

the submission of misinformation should have to be at a higher level than just g~y

misinformation, which could be as innocent and accidental as transposing numbers ofplacing

a

decimal

incorrectly.

This is a very serious provision of thepermit, with substantial implications

to

the Petitioner and to

society.

Submission of misinformation should have to be willful in order

for the permit to be revoked and not reissued.

37.

The citation

for Condition 9.12.3

should be Section

39.5(5)0)

of the Act.

38.

In Condition

9.14, the Agency provides that

the Perniittee may submit its Title V

renewal application

no sooner than

12

months prior to expiration of the current permit.

Petitioner finds

no

support

for this limitation.

For various reasons, a Pennittee may wish to seek

renewal of a permit sooner than the expiration date, for example to stagger the expiration dates

where the Permittee has more than

one source with separate CAAPP permits.

Petitioner requests

that

this phrase,

“and no sooner than

12

months prior,” be deleted from Condition 9.14.

39.

As points of clarification, Petitioner requests that “on the renewal permit” be

added

to Condition 9.14

following “The equipment may continue to

operate during the renewal

period until

final action is taken” and that an

s

be added to

“Section” in the citation.

40.

Section

10 ofthe

permit contains material that

is informational in nature.

It

appears that

this information does not comprise conditions of the permit

and

is not otherwise

This document

is printed on recycled paper.

-

15-

---

enforceable.

Therefore,

Petitioner requests that the

following statement be

inserted at

the

beginning of the section:

“The provisions of Section

10 constitute information only and

are not

enforceable as conditions ofthis permit.”

Request for Stay of the Effectiveness of the Permit

41.

Petitioner requests that the Board

stay the effectiveness ofthe entire permit during

the pendency of this matter.

The issues raised

in this Petition are scattered

throughout the

permit.

To stay the effectiveness ofonly those conditions identified in

the appeal would leave

the permit virtually meaningless.

To

not stay the effectiveness ofthe conditions

identified in this

Petition would

subject Petitioner to having to coniply with provisions

that are incorrect

applications of legal

requirements.

42.

Petitioner further requests that,

at the conclusion of this appeal, consistent with

this request

for stay ofthe effectiveness ofthe

permit, the Board

order the Agency to issue

a

new, revised permit

consistent

with the Board’s findings and containing as an issuance date the

date

upon

which

the revised

permit

is issued.

43.

Petitioner has operated

the Collins Generating Station pursuant to its state

operating permit since it

submitted its application for

its CAAPPpermit in September

1995.

That permit will continue to be the valid

and applicable permit during the pendency of this

appeal, maintaining the

status

quo ante.

This document is printed on recycledpaper.

-

16-

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WHEREFORE,

for the reasons set forth above, Petitioner requests that

the Board

(1)

Consider the issues raised in this

appeal of the final CAAPP permit issued

to

Midwest Generation, LLC

—

Collins Generating Station

and order the Agency to

amend the

permit as requested in this Petition, and

(2)

Stay the effectiveness ofthe permit

during the pendency ofthis matter, ordering

that

the

effective issuance date of the permit be the date of issuance of the amended

permit.

Respectfully submitted,

MIDWEST GENERATION,

LLC

-

COLLINS GENERATING STATION

~

AL67~

~

by:

/

Date

Kathleen

C.

assi

One ofIts Attorneys

SONNENSCHEIN NATH

& ROSENTHAL,

LLP

Kathleen C. Bassi

Mary A.

Gade

Attorneys

for Petitioner

8000 Sears Tower

233

South Wacker Drive

Chicago, Illinois

60606

312-876-7403

This document

is printed on

recycled paper.

-

17-

---

RI~CE1iVED)

CLER~’S OFF~F

DEC

3

1

2003

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

STATE

OF ~WNws

Pollution

Control Board

MIDWEST GENERATION, LLC

-

)

COLLINS GENERATING

STATION,

)

)

Petitioner,

)

Ot~

~

)

PCB~-~’

v.

)

(Permit Appeal

—

Air)

)

ILLINOIS ENVIRONMENTAL

)

PROTECTION AGENCY,

)

)

Respondent.

)

PETITION TO FILE

REDUCED NUMBER OF COPIES

OF ATTACHMENTS

NOW COMES Petitioner, MIDWEST GENERATION, LLC

—

COLLINS

GENERATING STATION, by its attorney KATHLEEN C. BASSI ofSONNENSCHEIN

NATH & ROSENTHAL LLP, and petitions the Board to allow it to submit the original and four

copies ofthe attachments to its Appeal of CAAPP Permit.

In support ofthis Petition, Petitioner

states as follows:

1.

In its

Appeal of CAAPP Permit, Petitioner refers

to the comments it submitted to

the Illinois Environmental Protection Agency (“Agency”) on November 4, 2003.

Because

Petitioner referred to the comments, it attached them to the Appeal ofCAAPP Permit.

2.

A part ofthe comments submitted to the Agency was a redlined copy of the

draft/proposed permit indicating various amendments to

the permit consistent with Petitioner’s

narrative comments.

The redlined draft/proposed permit is over

95

pages in length.

3.

Petitioner’s

comments will be included in the Agency’s record, which it is

required to

submit to the Board within 30 days after the filing ofthe Appeal ofCAAPP Permit.

This document is printed on recycled paper.

—1—

---

WHEREFORE, because ofthe volume of the attachment to the Appeal ofCAAPP Permit

and because the Agency is required to submit the attachment, which is comprised ofPetitioner’s

comments submitted to

the Agency on November 4, 2003, Petitionerrequests that the Board

grant this

Petition to

file the original and four copies of the attachment rather than the required

original and nine copies.

Respectfully submitted,

MIDWEST GENERATION, LLC

-

COLLINS GENERATING STATION

by:___________

Kathleen C. Bassi

One ofIts Attorneys

DATE:

December 31, 2003

SONNENSCHEN

NATH

& ROSENTHAL, LLP

Kathleen C.

Bassi

Mary A.

Gade

Attorneys for Petitioner

8000 Sears Tower

233 South Wacker Drive

Chicago, Illinois

60606

312-876-7403

This document is printed on recycledpaper.

-2-

---

IE

CE ~VE

CLERIc’s

OF~~’~

DEC

3

1

2003

BEFORE THE ILLiNOIS POLLUTION CONTROL BOARD

STATE OF IWNUaS

Pollution

Control

Board

MIDWEST GENERATION, LLC

-

)

COLLINS GENERATING STATION,

)

)

Petitioner,

)

o’-(

—(

PCB6______

v.

)

(Permit Appeal— Air)

)

ILLINOIS ENVIRONMENTAL

)

PROTECTION AGENCY,

)

)

Respondent.

)

APPEARANCE

I,

KATHLEEN C.

BASSI ofSONNENSCHEIN NATH & ROSENTHAL LLP, hereby

file my appearance

in this proceeding, on behalf ofMIDWEST GENERATION, LLC

—

COLLINS GENERATING

STATION.

~

~1t,

Kathleen C. Bassi

DATE:

December 31, 2003

Kathleen

C.

Bassi

SONNENSCHEIN NATH & ROSENTHAL LLP

8000 Sears Tower

233 South Wacker Drive

Chicago, Illinois

60606

312-876-7403

FAX:

312-876-7934

kbassi@sonnenschein.com

This document is printed on recycled paper.

—1—

---

CL~P~’~

r~r~r~

DEC

3

1.

2003

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

SiAIE

OF ILLINOIS

Pollution Control

Board

MIDWEST GENERATION,

LLC

-

)

COLLINS GENERATING STATION,

)

)

Petitioner,

)

o’4

—jo

PCB~-_______

v.

)

(Permit Appeal

—

Air)

)

ILLINOIS ENVIRONMENTAL

)

PROTECTION AGENCY,

)

)

Respondent.

)

CERTIFICATE OF SERVICE

I, the undersigned, certify that I have served the attached Appeal ofCAAPP

Permit,

Appearance of Kathleen C. Bassi, and Petition to File Reduced Number of Copies of

Attachments upon the following person, by Federal Express:

Illinois Environmental

Protection Agency, Division ofLegal Counsel

Kathleen C.

Bassi

One ofthe Attorneys for Petitioner

DATE:

December 31, 2003

SONNENSCHEINNATH & ROSENTHAL LLP

Kathleen C. Bassi

Mary A.

Gade

8000 Sears Tower

233

South Wacker Drive

Chicago, Illinois

60606

312-876-7403

FAX:

312-876-7934

kbassi@soImenschein.com

This document is printed on recycled paper.

—1—

---

Attachment A

---

D~c—3O—2OO3

C9:2Da~t

Fram—MIDWESTGEN

..~

T—5~4

P.001/015

F—540

:csicki

MIDWEST

~red

W. McCluskey

GENERATION

EME,

LIC

Vice l1’resident

Au

EDISONJNTERNA

TIONAL”

Company

Technical

Services and

Partnt~rship

Management

November4, 2003

Mr.

Brad

Frost

Q~TIFIED

MAIL

Division of

Air Pollution

Control

Bureau of

Air

iHinols

Environmental Protection Agency

1021

North Grand

Avenue, East

P.O.

Box 19506

Springfield,

IL

62794-9506

Mo:

Comments

on the Draft Title V Permit tor the

Collins Getierating

Station

(ID No.

O63BOGAAF),

Midwest Generation, LLC

Dear

Mr.

Frost:

Midwest

Generation LW,

is

pleased to

provide you with

its

comments

on the

draft

permit

tar the

CoHins

Generating

Station.

Midwest

Generation’s

comments

comprise

this letter

and

the

three

attachments

enclosed herewith.

Attachment

1

is

a narration

of

Midwest

Generation’s

technical comments

on

the

permit,

The

proposed amendments

to

the

permit

that

correlate

with

the

comments

in

Attachment

1

are

included

in

a

marked-up

version

of

the

permit

at

Attachment

2.

Please

note

that

Midwest

Generation

is

providing

a~

electronic

version

of

Attachments I

and

2

to the

Permits

Section.

Attachment 3

is related to special

conditIon

5.2.6

on

the

draft

permit,

whereby

per

letter dated

June 23, 1988 Collins Station

is exempt

from

submitting an Episode Action Plan.

Midwest

Generation

appreciates

the

cooperation

the

Agency

has

demonstrated

through

the

development

of

this

Title

V

permit.

We

look forward

to

continuing

to

work

with

the

Agency

through finaflzation

of

the

permit.

If

you

have

questions

regarding

any

of

these

comments,

please

contact

BID

Constantelos

(SI 2/583-6029)

or Scott Miller

(312/583-6059).

ncer

y,

#~ed

W.

McCluskey

Vice

President

of

Technical Services

and

artnerthip Management

End.

cc:

Jim Ross, without enclosures

Chris Romaine, without enclosures

John Cashrnan (via electronic

mail)

One Financial

PLace

440 South

La,SaIle

Street

Suite 3500

Chicago,

IL 60605

Tel;

3~25836097

Fax

312

788

54S3

Ccli;

312 925

3882

Email:

fmccLuskey’~mw~cn.corn

---

D6c—$0—2003

U2:ZUam

Pram—kIIPWESTGEN

,__...~

1—564

P.302/015

F—540

bcc:

Roxanne

Richards/George Weaver (Hard

Copy)

Fred

McCluskey (Electronic)

BecKey

Lauer (Electronic)

Doug McFarlan (Electronic)

Guy

(3omey (Electronic)

Karen

House (Electronic)

Kathleen Bassi (Electronic)

Bill

Constantelos

(Electronic)

Scott Mifler (Hard Copy)

File:

A-COL-PEH-B

---

T—564

P.003/015

F—540

Dec—30—2003

QaZoam

Fram—MIOWE$1G&N

Technical Comments of Midwest Generation, LLC

Proposed Title V

Permit

for the

Collins

Generating Station

ID No. 063$O6AAP

October 31,2003

Proposed language changes are included in

the text

of’ the proposed permit.

Narration or

explanation, identified by condition number, foliows.

1.2

1.3

Insignificant Achy!

3.1.1

and

3.1.2

4M

Changed the name of the Owner.

——

Added the name of theOwner to the name of

the

Opemtor.

lee

Moved the Diesel Fuel Unloading Facility from the list

Activities determined by the Agency in Condition 3.1.1

of Insignificant

to the list based

upon maximum emissions in Condition

3.1.2.

iUnlts

Added to list of pollution control equipment as gpprqpriate.

Comment

Cover

Letter

Corrected

the name of the Permittee.

Corrected the spelling

of the

name

of the contact

person.

-

Source Identification

-

;.

—.______

5.3.2

new

condition

Midwest Generation specifically requests the proposed

additional

language

to ensure that only the conditions included

in the permit

are

the

requirements applicable to this source

as of the date the

permit

is issued.

Midwestgeneration recognizes

Overall Source Conditions

5.2.2(b)

52.6

Corrected

the

applicable

requirements.

Added a note that the requirement for an Episode

Action Plan does

riot

apply to the Collins Generating Stabon.

---

Osc—30—2003

09~Z0;m

~ron—M!D~ESTGEN

1—584

P004/015

P—540

Attaclunent-t’

/

-

~echnjeat

Comments of

Midwest Generation,

LLC

Proposed Title V Permit for the Collins

Generating

Station

(11)

No.

O63SO6AAF)

Ocfober33,2003

5.3 Note

new

note

3.6.1(b)

5.8

Midwest Generation suggests that the Agency include the proposed

language to ensure that there is no confusion regarding the non-

applicability ofcertain provisions to specific emission units, as provided in

Section 7 at Condition 7X.5,

Con’ected the itquirement to reflect that oil, not coal, is burned

at the

Collins Generating Station.

Operational flexibility j~

provided in this permit.

Therefore, “NIA” is not

the proper language for this Condition.

To say”N/A” suggests that there is

no operational flexibility allowed for this source.

E’z-o grams

Condition

Comment

applicable in the future, Midwest Generation would be subject to them as

provided_at_§_39.5(15)(a)_of the_Act.

Emissions Control

6.1,8(a)(vi)

Necessary cross-reference to provide clarity.

6.L9

The proposed additional language clarifies thai should new units be added

j_______________

at the Collins Generating Station, Midwest Generation may obtain

allowances for them from the NSSA just as any other new EU!) may

6.1.1

6,1.2(a)

¶

1:

To refeitnce merely

*

1 10(a)(2)(D)

of

the Clean

Air

Act

as the

requirement for the so-called

NOx

trading program is insufficient.

The

recluirement is that states reduce NOx emissions, thus the reference to

1 iO(a)(2XD).

The option is that states participate in the trading program

ifl

order to accomplish that reduction, thus the necessity forthe references to

40 CFR Part

96

and 35 IAC 217.Subpat-t

W.

-~“~

—

¶

3:

The language added makes it clear that budget EGUs in Illinois may

obtain

allowances through the NOx trading system adn’nnistered by

USEPA.

¶

4;

Clarifying language was added to the

first sentence.

Additionally, that

the NOx Trading System will only jj~j~

meet air quality

goals is an

important concept to include at this point so that thereis no anticipation

that participants in the trading system axe the only sources requiredto

reduce emissions in order for nonattainment areas to attain theozone

standards.

Removed Boilers 6 and 7

Program is applicable, as

from the list of units to which the NOx Trading

Boilers 6 and 7 are not included (c 25 MW),

-2-

---

Dec—30—2003

09:2iam

From—MIOYiESTGEN

1564

P.005/015

F440

Attachment.2”

I

~chnicaI

Comments ofMidwest

Generation, LLC

Proposed Title V

Permit

for

the Collins

Generating

Station Uv

No. O~3SD6AAE)

Oclob.r 31,2003

Condition

7.1.4(bXi)

7.L4~e~

7.1.4(t)(i)(A)

Comment

-I

obtain

allowances from the NSSA.

This additional language is consistent with the provisions ofERMS and

serves the purpose ofeliminating uncertainty with respect to any

enforcement activity that might be considered, should the situation arise.

Deleted Boilers 6 and 7 from the list ofboilers to which the Acid Rain

Program is applicable,_as_appropriate.

Con’ected the applicable requirements.

There is not a Part 76 standard for

the boilers.

Corrected the applicable requirements.

(Subject

to NSPS —40

CIFR Subpart D)

In the

“‘p”

portion of Condition 7.l.3(c)(ii), the suggested language change

reflects the fact that not

all incidents are related, arid the Agency should not

assume that they are, particularly in a permit condition.

Midwest

Generation’s procedures and protocols require immediate attention to

incidents of excess~emissions.A subsequent incident of excess emissions

following closely upon a previous incident may be totally unrelated and

should not be conflated into the previous incident in such a case.

At the

least, the Agency should use the permissive “may” rather than “shall” in

—

order to preserve enforcement interpretation and discretion.

The language additions clarify the applicable requirements with respect to

the EGUs at the Collins Station and deletes the Collins Generating

Station

from the list of Midwest Generation stations included

iii

the 0.25 rule with

which Collins can trade,

as this

is the permit forCollins,

We note that the

Agency cannot authorize

activities at other generating stations through the

permit issued for the Collins Generating Station.

The permit issued to the

I__________________

Collins Generating Station may acknowledge the authorization to average

Corrected

the applicable requirements.

Corrected the applicable requirements.

Compliance with the 0.25 lb/nurjBtu requirement

for

NOx

emissions can

be demonstrated through

either

condition (A) or (B).

An individual ECU

is not required to comply with the 0.25 lb/mmBtu limitation if it is

participating in an averaging program.

Addition of the conjunction “or” is

necessary to clarify this point.

-3-

---

Dec—3D—ZOOS

U9:2lar~

Fron—MIDl~ESTGEN

1—564

P006/015

F—540

Attacbment

/

cchnical Comments of Midwest Generation, LLC

Proposed Tifle V Permitfor the Collins Generating Station (ID

No.

063&3&AP)

OeIob,r 31,2003

Condition

—

included in the other permits and maygrant Midwest Generation the

authority

to

include Collins in an averaging plan to demonstrate

compliance.

However, actual authority for the other plants must be in their

permits and cannot be granted through the permit for Collins.

Additionally, it is important to distinguish between generating stations

owned by Midwest Generation from those owned by other companies and

to make it clear that averaging, to demonstrate compliance with the0.25

NOx rule, can be accomplished through inter-company averaging as well

as intra-company averaging.

Finally, averaging is not limited to like

emission units.

That is, boilers are not restricted to averaging with other

boilers.

Therefore, we suggest that “boilers”

be changed to

7.1 .4(fl(ii)(C)

The very lastcruis-refeitnce in this Condition is to

35 TAC 217.708(g).

This

is an incorrect reference.

The reference should be to

§

217.708(0 in

order to reflect_the premise stated in_the_Condition.

7.1.5(b)

new

numbering

The Agency had included atCondition 7.1.4(e) that the boilers are subject

to more stringent NOx limitations pursuant to Section 407 of the

Clean Air

Act.

This is not the case.

Since the Agency included this prevision at

Condition 7.1.4(e), Midwest Generation believes that

it

is necessary not

only to d*te

tkie provision from Condition 7.1.4(e), but also to add

specific non-applic~bility

in Condition 7.1.5(b).

71 .6(a)

Corrected the reference to affected boilers rather than affectedturbines.

There are no turbines at the Collins Generating Station.

7.1.8(b)

—

Described the configuration ofthe boilers and stack.

7.1.8(c)

Added reference to the federal rules and described the configuration of the

boilers

and stack.

7.1.8(d)

.

There is no

§

821

ofthe Clean Air Act.

Rather,

§

821

is

a section

of

the

bill that amended the Clean Air Act,

This

section does not contain any

language that specifically amends the Clean Air Act but does direct

USEPA to adopt regulations to require monitoring of

CO2

for purposes of

information gathering.

At least for sources subject to the Acid Rain

Program,

the authoritative provision

appears to be 40 CFR 72.9(b).

7.1.’7(b)(ii)

7.1.8(a)

More correctly described the testing conditions for the boilers at the

Collins Generating Station.

Described the configuration ofthe boilers

and

stack.

-4-

---

Dec—30—2003

0~:2lam

Froe—MI0~ESTGEN

r

7164

P001/015

F140

Attachment

r

I

sechnical Comments of Midwest Generation, LLC

Proposed

Title

V Permit for the

Cotliqs

Generating

Station

(it) No. O63S(~AAE

October M, 2O~3

One ofthe ~tream1ining

provisions of Title V that is/was supposed to be

implemented was with respectto reporting.

Reporting dates were

supposed to be consolidated, with reductions in the redundancy ofthe

information required to be submitted.

Therefore, reporting dates for

different requirements should be consistent with each other to the extent

possible.

Ratherthan

contradict a later condition ofthe permit, we suggest

that the later condition be amended so that the permit reads correctly.

For

that reason, Midwest Generation suggests language regarding quarterly

reporting and reference to Condition 8.6.1

at this point of thepermit and

later provides suggested amendments for Condition 8.6.1.

We also note

7.1 .9(b)(ii)

Conected cross-references,

7.1 .9(b)(iii)

Corrected cross-references.~

Condition

Comment

Added reference to thecommon stack, as appropriate.

7.1.9(a)

-

Added new (ii) to provide for records for natural gas and oil usage.

Renumbered subsequent subparagraphs.

We note that the numberingof

the subsequent subparagraphs was not sequential

in

any event.

7.1.9(a)(vi)

Corrected cross-references.

7.1.9(b)

—

Added reference Lathe common stacks for Boilers 1,2,

and 3 and for

Boilers 4 and 5.

7.1.9(d)

Added appropriate reference to the common stacks for the boilers.

7.1.9(e)

Corrected the cross-reference from Condition 6.2.3 to

Condition 6.3.3,

which_addresses the_AcidRain_Program.

7.1 .9(f)(ii)(C)

~

7.1 .9(fxii)(C)(Ill)

Corrected the number of hours allowed for startup

consistent with the

pçpnit application.

-

Corrected the numbering of thesubparagraph.

7.1.9(b)(jij)(A) and

(B)

Corrected cross-references.

.

7.1.9(c)

—

Added appropriate references to the common stacks forthe boilers.

7.1.9(c)(ii)

Corrected the emissions rate.

1ii.1O(a)Oi)

-5-

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Dsc—30—2003

0922am

Fr~m—M~D~ESTGEN

1—564

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F—540

AttachmentZ

/

i’ecbnical

Comments or Midwest Generation, LLC

Proposed Title

V Permit for the Collins Generating Station

(ID

?4o.

O~3.GO6AAF)

Oeloba

31, 2V03

Added low NOx

burners to the list

of control equipment.

7.1. 10(h)

Condition

Comment

~~~1

that while the requested date changes inserted here are approximately

a

month

in extent, they are

only

approximatelytwo weeks longer than the

reporting dates that the Agency

included for other Midwest Generation

stations

(c.f

the

draft

and proposed permits for the Fisk

Generating

Station).

At the heating for the Crawford Ciencrating

Staxion, Mr. Chris

Romaine of

the Agency responded to a question regarding the frequency of reporting

in

a manner that suggests that there is some semi-annual reportingrequired of

the Collins Generating Station.

Midwest Generation understands 1mm the

original language in Condition 7.1.10(a) that

this

is

not

the case.

However,

if it is tmly thecase,

then Midwest Generation withdraws this comment.

—

7.1.1O(exiii)

Corrected_a_cross-reference.

-

10(e)Ov)

—

Corrected a cross-reference

-.

There is no

4

821 of the

Clóan Air

Act.

Rather,

§

821 is a

section

of the

bill that amended the Clean Air Act.

This section does not contain any

language that

specifically amends the Clean Air Act bu.t does direct

USEPA to

adopt regulations to require monitoring of

CO2

forpurposes of

information gathering.

At least forsources subject to the Acid Rain

Program, the authoritativeprovision appears to be 40 CFR729(b).

7.1,11(Note)

(new, additional

note

7.1.11(b)

Added reference

to 40

CFR

*

266.108, which reflects that the souree

qualifies for a small quantity burner exemption.

7.1.12(a)

7.1.12(b)

•The permit needs to reflect atthis point that the boilers cantire natural gas.

7.1.12(c)

Corrected cross~references.

Corrected cross-reference.

Boilers (Subject to

NS~S

—40

CFR Subpart Ob)

Added cross-reference.

7.2.2

7,2.1

Added that

these

bqfte~_are

not used tqgenerateelecuicity.

-j

---

Dec—30—2003

09:22am

From—M~D~ESTGEN

1—564

P.009/0~5

F—540

AttachmentZ

/

sechnical Comments of Midwest Generation, LLC

ProposedTitle V Permit

for

the Collins

Generating

Station (W No. 063806AAF)

October

31,2003

Condition

Comment

7.2,3(a)

Corrected the date after which construction

occurred.

7.2.3(b)

Correctedthe reference to the applicable section (35 IAC 212.122 rather

tItan_212.123)_and the cross-reference,

7.2,3(c)

Corrected the cross-reference.

—.

7.2,3(c)(ii)*

In the “s” portion ofCondition 7.1.3(c)(ii), the suggested language change

reflects the fact that not all

incidents are related, and the Agency should not

ass~.’me

that they are, particularly in a permit condition.

Midwest

Generation’s procedures and protocols require immediate attention to

incidents ofexcess emissions.

A subsequent incident ofexcess

emissions

!

following closely upon a previous incident may be totally unrelated and

.

should not~be

conflated into the previous incident in such a case,

At the

least, the Agency should use the permissive “nay” rather than “shall” in

order to preserve enforcement inteipretation arid discretion.

7.2.4(a)

Corrected the year after which construction occurred.

T

7.2.4(b)

Corrected the reference to the applicable provision.

7.24(d)

Deleted the Condition because Boilers 6 and 7, each less than 250 mmBtu,

are not subjectto

35

IAC_217.Subpart

w.

7.2.4(e)

Deleted the Condition because Boilers 6 and 7, less than 250 mnBtu,

are

not_subject to Illinois_0.25_NOx_rule.

Added Condition 7.2.5(c) to establish that

35 IAC 217.121 does not

apply

7.2.5(c)

(new number

to Boilers 6

and 7.

7.2.6(a)

Corrected the reference to boilers (rather than turbines).

7.2.6(d)

j_________________

Typographical error:

corrected the steam production to be consistent with

the underlying construction/operating permit.

7.2.5(d)

new

number

Added Condition 7.2.5(d)

to establish that neither the NOx

trading

program (Condition

6.1

and

35 IAC 217.Subpart W) nor

the0.25 NOx

averaging program applies

to

Boilers 6

and 7

(35 IAC 217.Subpart V),

because these boilers are each less than 250 mniBtu/hr.

Additionally,

Boilers 6 and7 are not used forthe purpose ofgenerating electricity and so

are not EGUs

as

definedby the applicability sections of35 IAC

217.Subparts

V and W.

-7-

---

Dsc—30—2303

09:22am

From—MIPtVESTGEN

1—584

PUl~/O15

F—540

Attathmentt

/

£

echnical Comments of

Midwest Generation, LLC

Proposed Title

V Permit

for the Collins Generating

Station

(in

No. 063~,G6A.Af)

Octobe

31.2003

7.2.7(a)

7.2.7(b)(ii)

7 ,2.7(b)(iii)

7.2.7(exy)

7.2.8(a)

7.2.9(a)(i)

Deleted PM from

the Condition,

as the fuel

is natural gas and PM is not a

controlled pollutant from these

boilers.

Amended the provision for where measurements

can be taken for these

boilers and the conditions under which additional measurements may be

required~y_thç~gpncy.

Deleted

the reference to PM.

Deleted the provision,

as PM monitoñng is not required for these boilers..

Addedreference

to

the

common stack forthe two boilers.

——

Corrected the citations to the CFR.

Addedreference to the common stack for the two boilers.

Condition

Contm~nt

7.2.7

—

Deleted PM from the Condition, as the fuel is natural gas and PM is non

controlled pollutant from these boilers.

-

7.2. LO(a)(ii)

I

—

One ofthe streamlining provisions ofTitle V that is/was supposed to be

implemented was with respect to reporting.

Reporting dates were

supposed to be consolidated, with reductions

in theredundancy ofthe

information required to be submitted,

Therefore, reporting dates for

different requirements should be consistent with each other to the extent

possible.

Rather than contradict a later condition of the permit, we suggest

that the later condition be amended so that the permit

reads correctly.

For

that reason, Midwest Generation suggests language regarding quarterly

reporting and reference to Condition 8.6.1 at this

point

of the permit and

later provides

suggested amendments for Condition 8.6.1.

We also note

that while the requested date changes inserted here are approximately a

month in extent, they are only approximately two weeks longer than the

7.2.9(aXiii)

7.2.9(b)(ii)

7,2.iO(a)(iXB)

Addedreference to the common stack forthe two boilers.

Deleted reference to PM, as it is not

a

controlled ~ol1ucant

from these

boilers.

This Condition should be deleted, as it is not applicable to these

boilers.

The boilers fire only natural gas, and there are not other fuel materials that

can be added or that are permittedto be

added.

-8-

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Dec—30—2U03

U9:23agi

Frovi—MIDl’ESTGEN

7—564

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F—540

Attachmentr

/

echnical Comments olMidwest Generation, LLC

Proposed Title V Permit forthe Collins Generating Station

(in

No.

063806AAF)

October

31,2003

7.2. tO(d)

7.2. 10(c)(iii)

7,2.J0(c)(iii(C)

7.2. l0(c)(Note)

Added reference to the common stack for these boilers.

Corrected th~

cross-reference.

Corrected the cross-reference.

Deleted the Note, which provides for the NOx averaging

217.Su~part

W, which doesnot applyto these boilers,

ünder

35

JAC

“~

Deleted the Condition

as the Illinois 0.25 NOx averaging requirements do

not apply to Boilers 6 and 7.

Corrected the cross-reference.

Condition

Comme~

reporting dates that the Agency included for otherMidwest Generation

stations

(c.f~

the draft

and

proposed permits for the FiskGenerating

Station).

At the hearing for the Crawford Generating Station, Mr. Chris Romaine of

theAgency responded to

a question regardingthe frequency ofreporting

in

a

manner that suggests that there is some semi-annual reporting required

of

the Collins Generating Station.

Midwest Generation understands

from the

original language in Condition 7.1.10(a) that this is not the case.

However,

if it is truly the case,then Midwest Generation withdrawsthis comment.

7.2.1O(b)(i)

.

TheAuxiliary Boiler does not have continuous opacity monitors.

Therefore, 6-minute average readings cannot be obtained.

However,

Midwest Generation will perform visual readings forone-halfhour.

General Permit Conditions

7.2.10(d)

7.2. 12(c)

Storag~

Tanks

7.3.4(c)

7.3.5W

7.3,10(a)

Midwest

Generation

has n

gasoline stored in its lank.

o control

over the Reid vapor pressure of the

This provision should not be applicable to

Midwest Generation.

Addedthat Midwest Generation is not subject to the Reid vapor pressure

requirement.

Conditions 7.3.4(a) and (b) are about transfer, not storage.

-9-

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Dec—30—2003

09:23am

FroirMID*ESTGEN

-

1—564

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F—540

Attschment

/

2chnieaI Comments ofMidwest Generation,

LLC

Proposed Title V

Permit

for

the

Collins

Generating

Station

(10 No, 063506AAF)

October

31, 2$)

Standard Permit Condifions

9.2.3

9.3

Forpurposes of internal consistency and to avoid confusion, Midwest

Generation requests that this sentence be added to Condition 9.2.3.

Midwest Generation is concerned with the scope oft

term “authorized

representative.”

At times, the Agency orUSEPA may employ contractors,

who would be their authorized representatives, to perform tasks that could

require them to enter Midwest Generation’s property.

Such

representatives, whether they are the Agency’s or USEPA’s employees or

contractors, must be subject to the limitations imposed by applicable

Confidential Business Information claims and by the Collins Generating

Station’s health and safety asles,

Additionally, Midwest Generation saggests a change to the citation to the

Environmental Protection

Act to piuvide for internal consistency.

As

presented in the draft permit, the Agency is citing to the same Act but in

two

different formats within the same phrase.

Language clarification.

Condition

Comment

8.5

Corrected crOss-reference.

9.14

Midwest Generation finds no statutory basis for limiting thesubmission of

-

a renewal applIcation of “no soonerthan

12 months prior to expiration” of

the current

permit.

Also, Midwest Generation

inserted language that clarifies what final action

the Agency must take, in the context ofcontinuing to

operate equipment

9. 1O.2(aXii)

9.12.3

Midwest Generation agrees with the Agency that a permit can be reopened

and corrected if Midwest Generation or the Agency discovers that

inaccurate information was included in the application.

Every effort has

been made to ensure that the information is accurate, and Midwest

Generation has certified to the accuracy ofthe

application.

A mere,

inadvertent inaccuracy should not be grounds for revocation of the permit,

merely for conection of the permit.

Revocation

of the permit should be for

not less than willful misrepresentation of information in the application.

Also, Midwest Generation

added the citation to

§

39.5(5)(i), the section of

the Act that addresses misinformation

included In an application.

However, it

is not exactly on point as to the Agency’s purpose in Condition

9.12.3.

-10-

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Dec—3D—ZOO3

02:ZSam

From—k~ID¼ESTGEIl

—-

1—564

p.013/015

F—540

Attachmentt

/

ethnical Comments ofMidwest GeneratIon, USC

Proposed Title V Permit forthe Collins Generating Station

(iv

No. 063?OSAF)

October 31, 2OO~

Condition

Comment

—.

prior to issuance_of the_renewal_permit.

Attachments

10.0

—

Midwest Generation requests that the Agency add the language suggested

in the attached copy ofthe permit regarding the scope of the

authority

of

Section

10 of thepermit.

Theattachments included in Section

10 are

informational and not enforceable as conditions of the permit.

11-

---

FINAL DRAFT/PROPOSED

CAAPP

PER.MIT

Midwest Generation EME,

LLC

ID.

No.;

OG38OGAAF

Application Mc.:

95090079

September

15,

2003

217/782—2113

TITLE

V

-

CLEAN

AIR

ACT

PERMIT

PROGRAM

(CA.APP)

PERMIT

and

TITLE

I

PERMIT1

PERMITTEE

Midwest

Generation.—P84~,

LUC

Attn:

Scott

B.

Miller

440

S.

LaSalle Street,

Suite

3500

Chicago,

IL

60505

Application No,:

95090079

ID.

No.:

063806AAF

Applicant’s Designation:

Collins

Date Received:

September

7,

1995

Operation of:

Electric Power Generation

Date Issued:

TO BE DETERMINED

~2~tion

Date’:

DATE

Source Location:

Collins Generating

Station, 4200 Pine Bluff Road,

Morris,

Grundy County,

IL

60450-9558

I

Responsible official:

Roxanne Richards/Station Director

This permit is hereby granted to the above-designated Permittee

to operate a

power generation

facility, pursuant

to the above referenced permit

application.

This permit is subject

to the conditions contained herein.

The current federal Phase

II ,Acid Rain Permit issued to Midwest Generation by

the Illinois EPA is incorporated into this CAAPP permit

(See Attachment

5)

If you have any questions concerning this permit,

please contact John Casbrnan

at 217/782—2113.

Donald S.

Sutton, FE.

Manager,

Permit Section

Division of Air Pollution Control

DES : JRC

cc;

Illinois

EPA,

P05,

Region

1

USEPA

‘This permit contains terms end conditions which address

the applicability,

and compliance

if

determined applicable,

nf Title I of

the cAA and regulations promulgated

thereunder, including

40

ceR 52.21

-

tedera.

P50 and 35 IAC Pert 203

—

Major

Stationary Sources construction and

Modification.

Any such terms and conditions

are identified within this permit.

‘Except as provided in condition 8.7 of this permit.

---

r

TABLE OF CONTENTS

PAGE

1.0

SOURCE IDENTIFICATION

44

1.1

Source

1.2

Owner/Parent Company

1.3

operator

1.4

General Source Description

2.0

LIST OF ABBREVIATIONS/ACRONYMS USED IN THIS PERMIT

44

3,0

INSIGNIFICANT ACTIVITIES

3.1

Identification

of Insignificant Activities

3.2

Compliance with Applicable Requirements

3.3

Addition of Insignificant Activities

4.0

SIGNIFICANT EMISSION UNITS

AT THIS SOURCE

5

.

0

OVERALL

SOURCE

CONDITIONS

5.1

Source

Description

5.2

Applicable Regulations

5.3

Mon-Applicability of Regulations of Concern

5.4

Source-Wide Operational and Production Limits and WorX

Practices

5.5

Source-Wide Emission Limitations

5.6

General

Reoordkeeping

Requirements

5.7

General

Reporting

Requirements

5.8

General Operational Flexibility/Anticipated Operating

Scenarios

5.9

General Compliance Procedures

6.0

EMISSIONS CONTROL PROGRAMS

6.1

NO, Trading Program

6.2

Emissions Reduction Market System

(EB±4S)

6.3

Acid Rain Program

7.0

UNIT SPECIFIC CONDITIONS

7.1

moilers

(Subject to NSPS

-

40 CFR Subpart 0)

7.2

Boilers

(Subject to NSPS

-

40 CFR Subpart Db)

7.3

Gasoline Storage Tanks

8.0

GENERAL

PERMIT

CONDITIONS

8.1

Permit

Shield

8.2

Applicability of Title IV Requirements

8.3

Emissions Trading Programs

8.4

Operational Flexibility/Anticipated Operating Scenarios

8.5

Testing Procedures

8.6

Reporting Requirements

8.7

Obligation

to Comply with Title

I Requirements

9.0

STANDARD

PERMIT

CONDITIONS

2

---

9.1

Effect of Permit

9.2

General Obligations of

Perreittee

9.3

Obligation to Allow Illinois EPA Surveillance

9.4

Obligation to Comply with Other Requirements

9.5

Liability

9.6

Recordkeeping

9.7

Annual F.missions Report

9.8

Requirements for Compliance Certification

9.9

Certification

9.10

Defense to Enforcement Actions

9.11

Permanent

Shutdown

9.12

Reopening And Reissuing Permit For Cause

9.13

Severability Clause

9.14

Permit Expiration and Renewal

10.0

ATTACHMENTS

10.1

Attachment

1

-

Emissions

of Particulate Matter from New

1-1

Process Emission Units

10.2

Attachment

2

-

Emissions

of Particulate Matter from

2-i

Existing Process Emission Units

iO.3

Attachment

3

Example Certification by a Responsible

3-1

Official

10.4

Attachment

4

—

Guidance

4-i

10.5

Attachment

5

-

Acid Rain Program Permit

5-i

3

---

1.0

SOURCE IOENTIFICATION

1.1

Source

Collins Generating Station

4200 Pine Bluff Road

Norris,

IL

50450-9558

815/942—4500

ext.

2289

I.D.

No.:

063806AAF

Acid Rain Permit ORIS Code No.:

6025

Standard Industrial Classification;

4911,

Electric Services

1.2

Owner/Parent Company

Collins Ccnorating Station

4200 Uinc Oluff ncod

i(~-rrio,ILt~0150955S

Collins Trust

I,

Collins Trust

II,

Collins Trust

III and Collins

Trust

IV.

Midwest_Generation,_LLC

440 South LaSalle Street,

Suire 3500

Chicago,

IL

60605

1.3

Operator

Midwest

Generation,

t,LC

collins

Generating

Station

4200 Pine Bluff

Road

Morris,

IL

60450-9558

George Weaver

815/942—4500 ext.

2289

1.4

General Source Oescription

Midwest Generation Collins Generating Station is located at 4200

Pine Bluff Road.

The source operates five natural gas and/or oil

fired boilers.

---

2.0

LIST

OF ABBREVIATIONS/ACRONYMS USED

IN THIS PERMIT

ACM.A

Alternative Compliance Market Account

Act

Illinois Environmental Protection Act

415

ILCS

5/1 et seq.J

AP-42

Compilation of Air Pollutant Emission Factors,

Volume

1,

Stationary Point and Other Sources (and Supplements A

through F), USEPA,

Office of Air Quality Planning and

Standards,_Research_Triangle_Park,_NC

27711

ATU

Allotment Trading Unit

BAT

Best Available Technology

Etu

British thermal unit

CAA

Clean Air Act

42

U.S.C.

Section 7401 et seq.1

CAAPP

Clean Air Act Permit Program

CAM

Compliance Assurance Monitoring

CFR

Code

of

Federal

Regulations

EGU

electrical generating unit(s)

RAMS

Emissions Reduction Market System

(35

IAC Part 205)

HAP

Hazardous Air Pollutant

Er

Hour

IAC

Illinois Administrative Code

I.D. No.

Identification Number of Source,

assigned by Illinois EPA

IUCS

Illinois Compiled Statutes

Illinois

EPA

Illinois

Environmental

Protection

Agency

R~.i

Kilowatts

LAnE

Lowest Achievable Emission Rate

ub

Pound

MACT

Maximum Achievable Control Technology

nimetu

Million British thermal units

Mg

megagram

or

metric

ton

NW

Megawatts

NESHAP

National

Emissj,on Standards for Hazardous Air Pollutants

NO,,

Nitrogen Oxides

NSPS

Mew Source Performance Standards

NSSA

new source set-aside

ORIS

Office of Regulatory Information System

PM

Particulate Matter

PMt0

Particulate matter with an aerodynamic diameter less than or

equal

to a nominal 10 microns as measured by applicable test

or monitoring methods

ppm

parts per million

P50

Prevention

of Significant Deterioration

(40 CFR 52.21)

R324P

Risk

Management

Plan

SO,

Sulfur

Dioxide

T

ton

(2000 pounds)

Tl

Title

I

—

identifies Title

I conditions

that have been

carried over from an existing permit

T1N

Title

I New

—

identifies Title

I conditions that are being

established in this permit

T1R

Title

I Revised

—

identifies Title

I conditions

that have

been carried over from an existing permit and subsequently

revised in this permit

USEPA

United States Environmental Protection Agency

‘tOM

Volatile Organic Material

5

---

3.0

INSIGNIFICANT

ACTIVITIES

3.1

Identification of Insignificant Activities

The following activities at the source constitute insignificant

activities as specified in 35 IAC 201.210:

3.1.1

Activities determined by the Illinois EPA to be

insignificant activities,

pursuant to

35 IAC 201.210(a) (1)

and 201.211,

as follows:

niosci

Fuol

Unloading

Facility

None

3.1.2

Activities that are insignificant activities based upon

maximum emissions, pursuant

to

35 IAC 201.210(a) (2)

or

(a) (3),

as follows:

Sulfuric Acid Collector Tank

Sodium

I-Jypochlorite

Tank

Aqueous

Ammonia

Storage

Tank

Diesel

Fue2

Unloading

Facility

3.1.3

Activities that are

insignificant activities based upon

their

type or character, pursuant

to 35 IAC 201.210(a) (4)

through

(18),

as follows:

Direct Combustion units designed and used

for comfort

heating purposes and fuel combustion emission units as

follows;

(A) Units with

a rated heat input Capacity

of less than

2.5 nimstu/hr that fire only natural gas,

propane,

or liquefied petroleum gas;

(B)

Units with a

rated heat input capacity of less than

1.0 nimntu/hr

that fire only oil

or oil

in combination with only

natural gas, propane,

or liquefied petroleum gas;

and

(C) Units with

a rated heat input capacity of

less

than 200,000 Btu/hr which never burn refuse,

or

treated or chemically contaminated wood

35

IAC

201.210 (a) (4)).

Equipment used for filling drums,

pails,

or other

packaging containers,

excluding aerosol Cans, with

soaps,

detergents,

surfactants, lubricating oils,

waxes, vegetable

oils, greases,

animal

fats,

glycerin,

sweeteners,

corn syrup,

aqueous salt solutlons,

or

aqueous caustic solutions

35

IAC 201,210(a) (8)1.

Storage tanks of any size containing virgin or re-

refined distillate oil, hydrocarbon condensate from

natural gas pipeline or storage systems,

lubricating

oil,

or residual

fuel

oils

(35 IAC 201.210(a) (11)1.

Gas turbines and stationary reciprocating internal

combustion engines of between

112 kW and 1,118 RN

(150

and 1,500 horsepower) power output that are emergency

or standby units

35

IAC 201.210(a) (16)).

6

---

Storage tanks of any size containing exclusively

soaps,

detergents,

surfactants,

glycerin,

waxes,

vegetable oils,

greases,

animal

fats,

sweeteners, corn

syrup,

acp,leous salt solutions,

or aqueous caustic

solutions,

provided an organic solvent has not been

mixed with such materials

(35 IAC 201.210(a) (17)).

Loading and unloading systems for railcars,

tank

trucks,

or watercraft

that handle only

the following

liquid materials, provided an organic solvent has not

been mixed with such materials;

soaps,

detergents,

surfactants,

lubricating oils,

waxes,

glycerin,

vegetable oils,

greases,

animal

fats,

sweetener,

corn

syrup,

aqueous salt solutions,

or aqueous caustic

solutions

(35 IAC 201.210(a) (18)).

3.1.4

Activities that are considered insignificant activities

pursuant

to 35 IAC 201.210(b).

Note:

The heating of a boiler with auxiliary fuel burners

during maintenance and repair of the boiler is addressed

as an insignificant activity under 35 IAC 201.210(b) (xxix)

and accordingly is not addressed in the unit-specific

conditions

of this permit for boilers.

3.2

Compliance with Applicable Requirements

Insignificant activities are subject

to applicable requirements

notwithstanding status as insignificant activities.

In

particular, in addition to regulations of general applicability,

such

as 35 IAC 212.301 and 212.123

(Condition

5.2.2),

the

Permittee

shall comply with the following requirements,

as

applicable;

3.2.1

For each cold cleaning degreaser,

the Permittee

shall

comply with the applicable equipment and operating

requirements of 35 IAC 218.182.

3.2.2

For each particulate matter process emission unit,

the

Permittee shall comply with

the applicable particulate

matter emission limit of 35 IAC 212.321 or 212.322.

For

example,

the particulate matter emissions from a process

emission unit shall not exceed 0.55 pounds per hour

if the

emission unit’s process weight rate

is 100 pounds per hour

or less,

pursuant to 35 IAC 266.110.

3.2.3

For each organic material emission unit that uses organic

material,

e.g., a mixer

or printing line,

the Permittee

shall comply with

the applicable VON emission limit of

35

IAC 2i8.30l, which requires that organic material

emissions not exceed 8.0 pounds per hour or

do not qualify

as photochemically reactive material as defined in 35

IAC

211.4690.

3.3

Addition of Insignificant Activities

3.3.1

The Perinittee

is not required to notify the Illinois EPA

of additional insignificant activities present at the

---

r

source of

a type that

is identified in Condition 3.1,

until the renewal application for this permit is

submitted, pursuant

to 35 IAC 201.212(a).

3.3.2

The Permittee must notify the Illinois EPA of any proposed

addition of a new insignificant activity of a type

addressed by

35 IAC 201.210 (a) and 201.211 other than

those identified in Condition

3.1, pursuant

to Section

39.5(12) (b)

of the Act.

3.3.3

the Permittee

is not required to notify the Illinois EPA

of additional insignificant activities present at the

source of a type identified in 35 IAC 201.210(b).

8

---

4.0

SIGNIFICANT

EMISSION

UNITS

AT

THIS

SOURCE

Note;

Modification of noilers

1 through

5 was

natural gas and maintain the use of

oil.

to

accommodate

the

use

of

Emission

Unit

Description

Date

Constructed

Emission Control

Equipment

BLR1

Babcock and Wilcox Natural Gas

and/or Oil Fired Boiler

(5,237 Nominal nrnBtu/hr)

May 1978

(Modified:

July

1993)

Low NOx Burners

BLR2

Babcock and Wilcox Natural Gas

and/or Oil Fired Boiler

(5,237 Nominal nmlBtu/hr)

April

1978

(Modified;

Dec 1993)

Low NOx Burners

BLR3

Babcock and Wilcox Natural Gas

and/or Oil Fired Boiler

(5,237 Nominal nsnstu(hr)

Aug 1977

(Modified:

May 1993)

Low NOx Burners

BLR4

Babcock and Wilcox Natural Gas

and/or Oil Fired Boiler

(5,187 Nominal irsnntu/hr)

Aug 1977

(Modified;

March 1997)

Low NOx Burners

BLR5

Babcock and Wilcox Natural Gas

and/or Oil Fired Boiler

(5,187 Nominal rsnotu/hr)

May 1978

(Modified:

March 1997)

Low NOx Burners

BLR6

AB~C-S Services Natural Gas

Fired Boiler

(242 Nominal

mmmtu/hr)

June 1998

Neee

Low NOr Ourners

BLR7

ABn C-E Services Natural Gas

Fired Hoiier

(242 Nominal

n,mBtu/hr)

June 1998

Nene

Low NOr Burners

TK21

1,000 Gasoline Storage Tank

June 1994

Nene

Submerged

Loading

Pipe

9

---

5.0

OVERALL

SOURCE CONDITIONS

5.1

Source

Description

5.1.1

This permit is issued based on the source requiring

a

CAAPP permit as

a major source of CO.

NOx,

S02,

PM, VOM,

and flAP emissions.

5.1.2

This permit is issued based on

the source requiring a

CAAPP permit as an “affected source” for the purposes

of

Acid Deposition Control,

Title IV of the Clean Air Act.

5.2

Applicable Regulations

5.2.1

Specific emission units at

this source are subject to

particular regulations as set forth in Section

7

(Unit

Specific Conditions)

of this permit.

5.2.2

In addition,

emission units at this source are subject to

the

following regulations of general applicability;

a.

No person shall cause

or allow the emission of

fugitive particulate matter from any process,

including any material handling

or storage activity,

that

is visible by an observer looking generally

overhead at a point beyond the property line of the

source unless the wind speed

is greater than 40.2

kilometers per hour

(25 miles per hour), pursuant

to

35 IAC 212.301 and 212.314.

Compliance with this requirement is considered to be

assured by the inherent nature of operations

at this

source,

as demonstrated by historical operation.

b.

No person shall

cause

or allow the emission of smoke

or other particulate matter, with an opacity greater

than

2.G’—20 percent,

into

the atmosphere from any

emission unit othar than thoot omionion unitn oubjcct

te—t4ee--eecaa4*ee--e-t-3-~—4Ae--24-2-,-kfl, pursuant

to

35

IAC ~-14-,4-242l2.l22(a),

except as allowed by 35 IAC

2i2.l232l2.J22(b)

and 212.124.

5.2.3

Ozone Depleting Substances

The Permittee shall comply with the standards

for

recycling and emissions reduction of ozone depleting

substances pursuant to

40 CFR Part

82,

Subpart

F,

except

as provided for motor vehicle air conditioners in Subpart

B of

40 CFR Part 82:

a.

Persons opening appliances for maintenance,

service,

repair,

or disposal must comply with the required

practices pursuant

to 40 CFR 82.156.

b.

Equipment used during the maintenance,

service,

repair,

or disposal of appliances

must comply with

the

standards

for recycling and recovery equipment

pursuant

to

40 CFR 82.158.

10

---

/

c.

Persons performing maintenance,

service,

repair,

or

disposal of appliances must be certified by an

approved technician certification program pursuant

to

40 CFR 82.161.

5.2.4

Risk Management

Plan

(EMP)

Should this stationary source pursuant

to 40 CFR

68.215(a) (2)

(i)

and

(ii),

as defined in

40 CFR 68.3,

become subject

to the federal rules

for Chemical Accident

Prevention

in 40 CFR part

68,

then

the owner or operator

shall

submit:

a.

A compliance schedule

for meeting the requirements of

40 CFR Part 68 by the date provided in 40 CFR

68.10 (a);

or

b.

A certification statement that

the source is in

compliance with all applicable requirements of

40 CFR

Part

68,

including the registration and submission of

the RNP,

as part of the annual compliance

certification required by Condition 9.8.

5.2.5

Future Emission Standards

a.

Should this source become subject to a regulation

under 40 CFR Parts

60,

61,

or 63,

or

35 IAC Subtitle

B

after

the date issued of this permit,

then

the owner

or operator shall,

in accordance with

the applicable

regulation(s),

comply with the applicable requirements

by the date(s)

specified and shall certify compliance

with the applicable requirements of such regulation(s)

as part

of the annual compliance certification,

as

required by Condition 9.8.

Note;

This permit may also have

to be revised or

reopened

to address such new regulations.

(See

Condition 9.12.2.)

b.

No later

than upon

the submittal for renewal of this

permit,

the owner

or operator shall

submit,

as part

of

an application,

the necessary information to address

either the non-applicability of, or demonstrate

compliance with all applicable regulations under 40

CFR Parts 60,

61,

or

63,

or 35 IAC Subtitle B that

were promulgated after

the date issued of this permit.

5.2.6

Episode Action Plan

a.

Pursuant

to 35 IAC 244.142,

the Permittee

shall

maintain at the source and have

on file with the

Illinois EPA a written episode action plan

(plan)

for

reducing the levels of emissions during yellow alerts,

red alerts,

and emergencies,

consistent with safe

operating procedures.

The plan shall contain the

information specified in

35 IAC 244.144.

li

---

b.

The

Permittee

shall

immediately

implement

the

appropriate

steps

described

in

this

plan

should

an

air

pollution

alert

or

emergency

be

declared.

C.

If

an

operational

change

occurs

at

the

source

that

invalidates

the

plan,

a

revised

plan

shall

be

submitted

to

the

Illinois

EPA

for

review

within

30

days

of

the

change,

pursuant

to

35

IAC

244.143(d).

Such

plans

shall

be

further

revised

if

disapproved

by

the

Illinois

EPA.

d.

For

sources

required

to

have

a

plan

pursuant

to

35

IAC

244.142,

a

copy

of

the

original

plan

and

any

subsequent

revisions

shall

be

sent

to;

i.

Illinois

EPA,

Compliance

Section.

~Q~fij_,j7~

h

Aenc

has determined that an Episode Action

Plan

is not required for the Collins Generating Station

(reference June

23,

1988,

letter from Terry

A. Sweitzer of

the Iliinois EPA to CL. McDonough of Commonwealth Edison,

the previous owner)

5.3

Non-Applicability of Regulations of Concern

5.3.1

This permit is issued based on the source not being

subject to 40 CFR Part

64, Compliance Assurance Monitoring

(CAY)

for Major Stationary Sources,

because the source

does

not have a pollutant-specific emissions unit that

uses

an add-on control device

to

achieve

compliance

with

an emission limitation or standard.

~

her ~

~retyofreuirementsappiicabletothissourceasof

the date

of issuance.

Note; Other regulations that~

2,aIl1tospecific

emission

units are identified in Section

7 as eppropriate.

5.4

Source-Wide Operational and Production Limits and Work Practices

In addition to the source-wide requirements in the Standard Permit

Conditions in Section 9,

the Permittee shall fulfill the following

source-wide operational and production limitations and/or work

practice requirements;

None

5.5

Source-Wide Emission Limitations

5.5.1

Permitted Emissions for Fees

Emission limitations are not set for this source for the

purpose of permit fees.

The Permittee shall be required

to pay the maximum fee required pursuant to Section

39.5(18) (a) (ii) (A)

of the Act, which

is

currently

$250,000.00

per year.

12

---

5.5.2

Emissions

of hazardous Air Pollutants

(NAPs)

Source-wide emission limitations for NAPs as listed in

Section 112(b)

of the CAA are not

set.

This source is

considered to be a major source of NAPs.

5.5.3

Other Source-Wide Emission Limitations

Other source-wide emission limitations are not set for

this source pursuant

to either the federal rules

for

Prevention of Significant Deterioration

(PSD),

40 CER

52.21,

state rules for Major Stationary Sources

Construction and Modification,

35 IAC Part 203,

or Section

502(b)

(10)

of the CAA.

however,

there may be unit

specific emission limitations set forth in Section

7 of

this permit pursuant

to these rules.

5.6

General Recordkeeping Requirements

5.6.1

Records for Emissions

The Permittee shall maintain records for the source to

prepare its Annual Emission Report including the following

items,

pursuant

to Section 39.9(7) (b)

of the Act:

a.

Records of annual emissions

from the emission units

that are covered by Section

7

(Unit Specific

Conditions)

of this permit,

including emissions of

mercury,

hydrogen chloride,

and hydrogen fluoride.

b.

‘~‘

~“‘~‘

morcury cmi~,~ons

t~arr.zdrnhcalarzzhal~1bcbaccdznthtda~ta

flcqucst

(ICR) pursuant t-See*ion

112

of thc

cican Air Act.

If

tuat data abtac

to

act

allahIt

ISr

a “aai

~-het-—i-e--1r~e4—4.+—e--be4-l.ee.,—*The

Permittee shall

collect representative data on the elemental

composition of the eee4oii,

including mercury’,-

oimilar to thc ICO data oolloctod by UCEPA.

5.6.2

Records for Operating Scenarios

N/A

5.6.3

Retention and Availability of Records

a.

All records and logs required by this permit shall be

retained for at least five years from the date

of

entry

(unless a longer retention period is specified

by the particular recordkeeping provision herein)

shall

be kept at a location at the source that is

readily accessible to the Illinois EPA or USEPA,

and

shall be made available

for inspection and copying by

the Illinois EPA or USEPA upon request.

13

---

b.

The Permittee shall retrieve and print,

on paper

during normal source office hours,

any records

retained in

an electronic format

(e.g.,

computer)

in

response to an Illinois EPA or USEPA request for

records during the course of a source inspection.

5.7

General Reporting Requirements

5.7.1

General Source-Wide Reporting Requirements

The Permittee

shall promptly notify the Illinois EPA of

deviations of the source with the permit requirements as

follows,

pursuant to Section 39.5(7) (f) (ii)

of the Act.

Reports shall describe the probable cause of such

deviations,

and any corrective actions or preventive

measures taken.

i.

For emissions units

that are addressed by the unit-

specific conditions of this permit,

the timing for

reporting of deviations shall

be

in accordance with

such conditions.

ii.

A.

For other emissions units and activities at the

source,

the timing for reporting of deviations

shall be

in accordance with the provisions of

relevant regulations if such provisions address

timing of deviation reports.

0.

Otherwise,

if the relevant regulations do not

address timing of deviation reports,

deviation

reports shall be submitted within

30 days.

5.7.2

Annual Emissions Report

The annual emissions report required pursuant

to Condition

9.7

shall contain emissions information for the previous

calendar year including information for emissions

of

mercury,

hydrogen chloride, hydrogen fluoride,

and other

hazardous air pollutants, as specified by

35 IAC Part

254

(see also Condition 9.7).

5.8

General Operational Flexibility/Anticipated Operating Scenarios

~UA0perational

flexibility ~

5.9

General Compliance Procedures

5.9.1

General Procedures

for Calculating Emissions

None

14

---

6.0

EMISSIONS CONTROL PROGRAMS

6.1

NO, Trading Program

6.1.1

Description

of

NO,,

Trading

Program

The

NO,

Trading

Program

is

a

regional

“cap

and

trade’

market

system

for

large

sources

of

NO,

emissions

in

the

eastern

United

States,

including

Illinois.

It

is

designed

to

reduce

and

maintain

NO,

emissions

from

the

emission

units

covered

by

the

program

within

a

budget

to

help

contribute

to

attainment

and

maintenance

of

the

ozone

ambient

air

quality

standard

in

the

multi-state

region

covered

by

the

program,

as

required

by

Section

110(a)

(2)

(D)

of

the

CAA,

40

CFR

Part

96,

and

35

IAC

2l7.SubpartW.

The

NO,,

Trading

program

applies

in

addition

to

other

applicable

requirements

for

NO,

emissions

and

in

no

way

relaxes

these

other

requirements.

Electrical

generating

units

(EGU)

that

are

subject

to

the

NO,

Trading

Program

are

referred

to

as

“budget

ECU.”

Sources

that

have

one

or

more

ECU

or

other

units

subject

to

the

NO,

Trading

Program

are

referred

to

as

budget

sources.

The

NO,,

Trading

Program

controls

NO,

emissions

from

budget

ECU

and

other

budget

units

during

a

seasonal

control

period

from

May

1

through

September

30

of

each

year,

when

weather

conditions

are

conducive

to

formation

of

ozone

in

the

ambient

air.

(In

2004,

the

first

year

that

the

NO,

Trading

Program

is

in

effect,

the

control

period

will

be

May

31

through

September

30.)

By

November

30

of

each

year,

the

allowance

transfer

deadline,

each

budget

source

must

hold

“NO,

allowances”

for

the

actual

No,

emissions

of

its

budget

units

during

the

preceding

control

period.

In

addition

to

receiving

allowances

allocated

by

USEL’A

pursuant to direction

from

the

Illinois

EPA,

budget

EQUS

may also obtain allowances through the open market trading

system established in 40 CYR Part

96.

The USEPA will then

retire NO, allowances in the source’s accounts

in amounts

equivalent

to

its

seasonal emissions.

If a source does

not have sufficient allowances in its accounts, USEPA

would subtract allowances from the source’s

future

allocation

for the next control period and impose other

penalties as appropriate.

Stringent monitoring procedures

developed by USEPA apply to budget units to assure that

actual emissions of NO, emissions are accurately

determined.

The number of

NO, allowances available for budget sources

participating

in the

multi-state trading system is set by

the overall budget for

NO,

emissions established by USEPA.

This budget requires a substantial reduction

in NOx

emissions

from historical

levels as necessary

to meet air

quality goals.

In Illinois,

existing budget sources

initially receive their allocation or share of the

NO,

allowances budgeted for ECU in an amount determined by

rule

£35

IAC Part 217,

Appendix FJ

.

Between 2007

and

15

---

2011,

the

allocation

mechanism

for

existing

ECU

gradually

shifts

to

one

based

on

the

actual

operation

of

ECU

in

preceding control periods.

New budget ECU,

for which

limited

operating

data

may

be

available,

may

obtain

NOx

allowances

from

the

new

source

set-aside

(NSSA)

,

a

portion

of

the

overall

budget

reserved

for

new

ECU.

In

addition

to

directly

receiving

or

purchasing

NO,

allowances

as

described

above,

budget

sources

may

transfer

NO,

allowances

from

one

of

their

units

to

another.

They

may

also

purchase

allowances

in

the

marketplace

from

other

sources

that

are

willing

to

sell

some

of

the

allowances

that

they

have

received.

Each

budget

source

must

designate

an

account

representative

to

handle

all

its

allowance

transactions.

The

USEPA,

in

a

central

national

system,

will

maintain

allowance

accounts

and

record

transfer

of

allowances

among

accounts.

The

ability

of

sources

to

transfer

allowances

will

serve

to

minimize

the

costs

of

reducing

NO,

emissions

from

budget

units

to

comply

with

the

overall

NO,

budget.

In

particular,

the

NO,

emissions

of

budget

units

that

may

be

most

economically

controlled

will

be

targeted

by

sources

for

further

control

of

emissions.

This

will

result

in

a

surplus

of

NO,

allowances

from

those

units

that

can

be

transferred

to

other

units

at

which

it

is

more

difficult

to

control

NO,

emissions.

Experience

with

reduction

of

sulfur

dioxide

emissions

under

the

federal

Acid

Rain

program

has

shown

that

this

type

of

trading

program

not

only

achieves

regional

emission

reductions

in

a

more

cost-

effective

manner

but

also

results

in

greater

overall

reductions

than

application

of

traditional

emission

standards

to

individual

emission

units.

The

USEPA

developed

the

plan

for

the

NO,

Trading

Program

with

assistance

from

affected

states.

Illinois’

rules

for

the

NO,

Trading

Program

for

ECU

are

located

at

35

IAC

Part

217,

Subpart

W,

and

have

been

approved

by

the

USEPA.

These

rules

provide

for

interstate

trading,

as

mandated

by

Section

9.9

of

the

Act.

Accordingly,

these

rules

refer

to

and

rely

upon

federal

rules

at

40

CFR

Part

96,

which

have

been

developed

by

USEPA

for

certain

aspects

of

the

NO,

Trading

Program,

and

which

an

individual

state

must

follow

to

allow

for

interstate

trading

of

allowances.

Note:

This

narrative

description

of

the

No,

Trading

Program

is

for

informational

purposes

only

and

is

not

enforceable.

6.1.2

Applicability

a.

The

following

emission

units

at

this

source

are

budget

ECU

for

purposes

of

the

NO,

Trading

Program.

Accordingly,

this

source

is

a

budget

source

and

the

Permittee

is

the

owner

or

operator

of

a

budget

source

and

budget

ECU.

In

this

section

of

this

permit,

these

emission

units

are

addressed

as

budget

ECU.

16

---

Boilers

1,

2,

3,

4,and

5,

6,

and

7

b.

This

permit

does

not

provide

‘low-emitter

status”

for

the

above

emission

units

pursuant

to

35

lAG

217.754(c)

6.1.3

Ceneral

Provisions

of

the

NO,

Trading

Program

a.

This

source

and

the

budget

ECU

at

this

source

shall

comply

with

all

applicable

requirements

of

Illinois’

NO,

Trading

Program,

i.e.,

35

lAO

Part

217,

Subpart

W,

and

40

CER

Part

96

(excluding

40

OER

96.4(b)

and

96.55(c),

and

excluding

40

~FR

96,

Subparts

C,

E,

and

I),

pursuant

to

35

lAc

217.756(a)

and

217.756(f)

(2).

b.

Any

provision

of

the

NO,

Trading

Program

that

applies

to

a

budget

source

(including

any

provision

applicable

to

the

account

representative

of

a

budget

source)

shall

also

apply

to

the

owner

and

operator

of

such

budget

source

and

to

the

owner

and

operator

of

each

budget

ECU

at

the

source,

pursuant

to

35

lAO

2i7.756(f)

(3).

c.

Any

provision

of

the

NO,

Trading

Program

that

applies

to

a

budget

ECU

(including

any

provision

applicable

to

the

account

representative

of

a

budget

ECU)

shall

also

apply

to

the

owner

and

operator

of

such

budget

ECU.

Except with regard to requirements applicable

to

budget

ECtis

with

a

common

stack

under

40

CFR

96,

Subpart

H,

the

owner

and

operator

and

the

account

representative

of

one

budget

ECU

shall

not

be

liable

for

any

violation

by

any

other

budget

ECU

of

which

they

are

not

an

owner

or

operator

or

the

account

representative,

pursuant

to

35

lAG

217.756(f)

(4).

6.1.4

Requirements

for

NO,

Allowances

a.

Beginning

in

2004,

by

November

30

of

each

year,

the

allowance

transfer

deadline,

the

account

representative

of

each

budget

ECU

at

this

source

shall

hold

allowances

available

for

compliance

deduction

under

40

0~

96.54

in

the

budget

ECU’s

compliance

account

or

the

source’s

overdraft

account

in

an

amount

that

shall

not

be

less

than

the

budget

ECU’s

total

tons

of

NO,

emissions

for

the

preceding

control

period,

rounded

to

the

nearest

whole

ton,

as

determined

in

accordance

with

40

CFR

95,

Subpart

N,

plus

any

nunther

necessary

to

account

for

actual

utilization

(e.g.,

for

testing,

start-up,

malfunction,

and

shut

down)

under

40

CFR

96.42(e)

for

the

control

period,

pursuant

to

35

IAC

217.756(d)

(1)

For

purposes

of

this

requirement,

an

allowance

may

not

be

utilized

for

a

control

period

in

a

year

prior

to

the

year

for

which

the

allowance

is

allocated,

pursuant

to

35

lAG

217.756(d)

(5).

17

---

b.

The

account

representative

of

a

budget

ECU

that

has

excess

emissions

in

any

control

period,

i.e.,

NO,

emissions

in

excess

of

the

number

of

NOx

allowances

held

as

provided

above,

shall

surrender

allowances

as

required

for

deduction

under

40

CFR

96.54(d)

(1),

pursuant

to

35

IAC

217.756(f)

(5).

In

addition,

the

owner

or

operator

of

a

budget

ECU

that

has

excess

emissions

shall

pay

any

fine,

penalty,

or

assessment,

or

comply

with

any

other

remedy

imposed

under

40

GEE

96.54(d) (3)

and

the

Act,

pursuant

to

35

lAG

217.756(f) (6).

Each

ton

of

POx

emitted

in

excess

of

the

number

of

No,

allowances

held

as

provided

above

for

each

budget

ECU

for

each

control

period

shall

constitute

a

separate

violation

of

35

lAO

part

217

and

the

Act,

pursuant

to

35

lAG

217.756(d)

(2).

c.

An

allowance

allocated

by

the

Illinois

EPA

or

USEPA

under

the

NO,

Trading

Program

is

a

limited

authorization

to

emit

one

ton

of

NO,

in

accordance

with

the

NO,

Trading

Program.

As

explained

by

35

IAC

217.756(d) (6),

no

provisions

of

the

NO,

Trading

Program,

the

budget

permit

application,

the

budget

permit,

or

a

retired

unit

exemption

under

40

CFR

96.5

and

no

provision

of

law

shall

be

construed

to

limit

the

authority

of

the

United

States

or

the

State

of

Illinois

to

terminate

or

limit

this

authorization.

As

further

explained

by

35

lAO

217.756(d)

(7),

an

allowance

allocated

by

the

Illinois

EPA

or

USEPA

under

the

NO,

Trading

Program

does

not

constitute

a

property

right.

As

provided

by

35

lAO

217.756(d)

(4),

allowances

shall

be

held

in,

deducted

from,

or

transferred

among

allowances

accounts

in

accordance

with

35

lAO

Part

217,

Subpart

W,

and

40

OFR

96,

Subparts

F

and

C.

6.1.5

Monitoring

Requirements

for

Budget

ECU

a.

The

Permittee

shall

comply

with

the

monitoring

requirements

of

40

cEll

Part

96,

Subpart

H,

for

each

budget

ECU

and

the

compliance

of

each

budget

ECU

with

the

emission

limitation

under

Condition

6.1.4(a)

shall

be

determined

by

the

emission

measurements

recorded

and

reported

in

accordance

with

40

CER

96,

Subpart

H,

pursuant

to

35

lAO

2l7.756(cHl),

(c)(2)

and

(dH3).

b.

The

account

representative

for

the

source

and

each

budget

ECU

at

the

source

shall

comply

with

those

sections

of

the

monitoring

requirements

of

40

OFR

96,

Subpart

H,

applicable

to

an

account

representative,

pursuant

to

35

lAO

217.756(c)

(1)

and

(d)

(3)

Note:

Pursuant

to

40

CEll

96.70(b),

existing

budget

ECU

were

to

begin

complying

with

applicable

monitoring

requirements

of

40

GEE

Part

96

at

least

one

year

in

advance

of

the

start

of

the

first

control

period

governed

by

the

NO,

Trading

Program.

18

---

6.1.6

Eecordkeeping

Requirements

for

Budget

ECU

Unless

otherwise

provided

below,

the

Permittee

shall

keep

on

site

at

the

source

each

of

the

following

documents

for

a

period

0t

5

years

from

the

date

the

document

is

created.

This

5-year

period

may

be

extended

for

cause

at

any

time

prior

to

the

end

of

the

5

years,

in

writing

by

the

Illinois

EPA

or

the

USEPA.

a.

The

account

certificate

of

representation

of

the

account

representative

for

the

source

and

each

budget

ECU

at

the

source

and

all

documents

that

demonstrate

the

truth

of

the

statements

in

the

account

certificate

of

representation,

in

accordance

with

40

GEE 96.13, as provided by 35 lAO 217.756(e) (1) (A).

These

certificates

and

documents

must

be

retained

on

site

at

the

source

for

at

least

5-years

after

they

are

superseded

because

of

the

submission

of

a

new

account

certificate

of

representation

changing

the

account

representative.

b.

All

emissions

monitoring

information,

in

accordance

with

40

CEll

96,

Subpart

H,

(provided

that

to

the

extent

that

40

OFR

96,

Subpart

H,

provides

for

a

3-

year

period

for

retaining

records,

the

3-year

period

shall

apply),

pursuant

to

35

lAO

217.756(e)

(1) (8).

c.

Copies

of

all

reports,

compliance

certifications,

and

other

submissions

and

all

records

made

or

required

under

the

NO,

Trading

Program

or

documents

necessary

to

demonstrate

compliance

with

requirements

of

the

NO,

Trading

Program,

pursuant

to

35

lAO

217.756(e)

(1)

(c)

d.

Copies

of

all

documents

used

to

complete

a

budget

permit

application

and

any

other

submission

under

the

NO,

Trading

Program,

pursuant

to

35

lAO

217.756(e)

(1)

(U)

6.1.7

Reporting

Requirements

for

Budget

ECU

a.

The

account

representative

for

this

source

and

each

budget

ECU

at

this

source

shall

submit

to

the

Illinois

EPA

and

USEPA

the

reports

and

compliance

certifications

required

under

the

No,

Trading

Program,

including

those

under

40

CFR

96,

Subparts

0

and

H,

and

35

IAC

217.774,

pursuant

to

35

lAO

217.756(e) (2).

b.

Notwithstanding

the

provisions

in

Conditions

9.6

and

9.9

of

this

CAAPP

permit,

these

submittals

need

only

be signed by the designated representative,

who may

serve

in place of the responsible official

for this

purpose,

as provided by Section 39.5(1)

of the Act,

and submittals

to the Illinois EPA need only be made

to the Illinois

EPA, Air Compliance Section.

6.1.8

Allocation

of NO, Allowances

to Budget ECU

19

---

a.

As the budget ECU identified

in Condition 6.1.2(a)

are “existing’ ECU listed in

35 lAO Part 217,

Appendix F,

these

ECU are entitled to NO, allowances

as follows.

(The portion of Appendix F that applies

to the Permittee

is provided in Condition 6.1.12.)

The number of NO, allowances actually allocated

for

the budget ECU shall be the number of NO, allowances

issued by USEPA pursuant

to the allocation

information reported

to it by the Illinois

EPA, which

information may reflect adjustments to the overall

allocations to budget ECU as provided for by 35 IAC

217.760(b) and

(c)

i.

In 2004 through 2006

(the first

three years

of

the NO, Trading Program)

,

an annual allocation

of NO, allowances

as specified by 35 lAO

217.764(a)(1),

i.e.,

the number of

NO,

allowances listed in Appendix F,

Column 7,

and

as provided by 35 IAC 217.768(j),

a pro-rata

share of any NO, allowances remaining in the

new source set-aside

(NSSA)

following the

allocation of allowances

to new budget ECU.

ii.

In

2007,

as provided by 35 lAO 217.764(b),

an

allocation of NO, allowances as specified by

35 IAC 217.764(b) (1),

i.e.,

the number of

NO,

allowances listed in Appendix F,

Column

8,

and

as provided by 35 lAO 217.764(b) (4),

a pro-

rata share of any NO, allowances remaining

after

the allocation of allowances pursuant to

35 lAO 217.764(b) (2)

to budget ECU

that

commence operation between January

1,

1995 and

April

30,

2003.

iii.

In

2008,

as provided by 35 lAO 217.764(c),

a

specified allocation of NO, allowances,

i.e.,

the number of NO, allowances listed in

Appendix F, Column 8, and a pro-rata share of

any NO, allowances remaining after the

allocation of allowances

to budget ECU that

commence operation between

January 1,

1995 and

April

30,

2004.

iv.

In

2009,

as provided by 35 lAO 217.764(d),

a

specified allocation of NO, allowances,

i.e.,

the number of MO, allowances listed in

Appendix F, Column

9,

and a pro-rata share of

any NO, allowances remaining after the

allocation of NO, allowances to budget ECU

that commence operation between January

1,

1995 and April

30,

2005,

and as provided by 35

lAO 217.764(d) (6),

a pro-rata share of any

surplus

of NO, allowances in the NSSA after

the allocation of NO, allowances

to new budget

ECU pursuant

to

35 lAO 217.764(d) (5).

20

---

v,

In 2010,

as provided by 35 IAC 217.764(e),

a

specified allocation of

NO, allowances,

i.e.,

the number of NO, allowances listed in

Appendix F,

Column

9,

and

a pro- rata share

of

any NO, allowances remaining after

the

allocation of NO, allowances to budget ECU

that commence operation between January

1,

1995 and April

30,

2006,

and a pro-rata share

of any surplus of NO, allowances

in the NSSA

following the allocation of NO, allowances

to

new budget ECU.

vi.

In 2011 and annually thereafter,

as provided

by 35 IAC 217.764(e),

an allocation of

NO,

allowances

based on the prior operation of the

ECU during previous control periods,

as

described in Condition 6.1.8(b), and a pro-

rata share

of any surplus of NO, allowances in

the NS5A following the allocation of NO,

allowances

to new budget ECU.

Note:

If the start of the NO, Trading program is

shifted because of a Court Decision,

the years

defining the different control periods would be

considered to be adjusted accordingly,

as provided by

the Board note following

35 lAO 217.764.

b.

In accordance with 35 lAO 217.762,

the theoretical

number of NO, allowances for the budget ECU listed in

condition 6.1.2(a), calculated as the product of the

applicable NO, emissions rate and heat

input

as

follows,

shall be the basis

for determining the pro-

rata share of NO, allowances

for the budget ECU and

the allocation of NO, allowances to the budget ECU

based on their prior operation:

i,

The applicable NO, emission rate

for the

budget ECU shall be 0.15 lblmmntu,

as

specified by 35 IAC 217,762 (a) (1).

ii.

The applicable heat input (mmstu/control

period(

shall be

the average of the two

highest heat inputs from

the control periods

four to six years prior to the year

for which

the allocation

is being made,

as provided by

35 lAO 217.762(b) (1)

6.1.9

Eligibility for NO, Allowances from the Mew Source Set-

Aside

(NSSA)

The Permittee

is not eligible to obtain NO, allowances

for

the budget ECU identified in Condition

6.1.2(a)

from the

NSSA,

as provided by 35 lAO 217.768,

because the budget

ECU are

“existing’ budget ECU..

New budget EGO that the

Permittee may add to the source would be eligible to

obtain NOx allowances

train the NSSA,

as provided by 35 The

217.768.

21

---

6.1.10

Eligibility for Early Reduction Credits

(EEC)

a.

The Permittee did not request NO, allowances

for the

budget ECU identified

in Condition

6.1.2(a)

for early

reductions

in its NO, emissions

in the 2001 control

period in accordance with 35 lAO 217.770.

b.

i.

The Permittee may pursue NO, allowances for

early reductions

in NO, emissions,

i.e.,

reductions made during the 2002 and 2003

control period,

as provided by 35 lAO 217.770.

ii.

For the purpose of any such request,

the NO,

emissions must have been reduced by at least

30 percent less than the permitted emission

rate of

these ECU as specified in Condition

6.1.8(b) (ii),

pursuant

to 35 TAO

217.770(c) (1)

6.1.11

nudget Permit Required by the NO, Trading Program

a.

For this source,

this segment of the CAAPP Permit,

i.e.,

Section

6.1,

is

the Budget Permit required by

the NO, Trading Program and is intended to contain

federally enforceable conditions addressing all

applicable NO, Trading Program requirements.

This

Budget Permit shall be treated as

a complete and

segregable portion of the source’s entire CAAPP

permit,

as provided by

35 lAO 217.758(a) (2).

b.

The Permittee and any other owner or operator of this

source and each budget ECU at

the source shall

operate the budget ECU in compliance with this Budget

Permit,

pursuant to 35 lAO 217.756(b) (2).

c.

No provision of this oudget Permit or the associated

application shall

be construed as exempting or

excluding the Permittee,

or other owner or operator

and,

to the extent applicable,

the account

representative of

a budget source or budget ECU from

compliance with any other regulation or requirement

promulgated under the CAA,

the Act,

the approved

State Implementation

Plan,

or other federally

enforceable permit, pursuant to

35 lAO 217.756(g)

d.

Upon recordation by USEPA under 40 CFR 96,

subpart F

or

C,

or

35 TAC 217.782,

every allocation,

transfer,

or deduction of an allowance

to or from the budget

units’

compliance accounts

or

to or from

the

overdraft account for the budget source is deemed to

amend automatically, and become part of,

this budget

permit,

pursuant to 35 lAO 217.756(d) (8).

This

automatic amendment of this budget permit shall be

deemed an operation of law and will not require any

further review.

e.

No revision of this Budget Permit shall excuse any

violation of the requirements of the NO, Trading

22

---

C

Program that occurs prior

to the date that the

revisions

to this permit takes effect,

pursuant

to 35

lAO 217.756(f) (1)

f.

The Permittee, or other owner or operator

of the

source,

shall

reapply for a Budget Permit for the

source as required by 35 TAO Part

217,

subpart

w

and

section 39.5 of the Act.

For purposes of the NO,

Trading Program,

the application shall contain the

information specified by 35 TAO 217.758(b) (2).

6.1.12

References

35 TAO Part

217 Appendix F

-

(provisions applicable to the Permittee)

rooop,ny

NO,

NOX

NOt

?O~TfOO7,

2009,

BaBe/

Generating

Budget

Budget

Budget

2006

2008

2010

1.0.

No.

un.it

,ou

P,llo,anCes

Odlowance,

Allo,,,noe,

AIlr,,,nces

allow,nces

Allow,nces

063806AA0

Collins

1

collins

i

302

242

151

287

237

148

063806AAF

(

CollIns

2

Collins

2

305

244

153

290

238

150

063816AA5

Collins

3

Collins

3

469

315

235

446

368

210

0638065SF

Collins

4

Collins

4

280

232

145

275

227

142

063806858

tollin,

5

I

Collins

5

458

366

229

435

359

224

23

---

6.2

Emissions Reduction Market System

(ERN5)

6.2.1

Description of ERN5

The ERNS

is

a

‘cap and trade’ market system for major

stationary

sources located in the Chicago ozone

nonattainrnent area.

It

is designed to reduce VON

emissions from stationary sources

to contribute to

reasonable

further progress toward attainment,

as required

by Section 182(c)

of the CAA.

The

£89145 addresses VON emissions during a seasonal

allotment period from May

1 through September

30.

Once

the

EP1’45 begins, participating sources must hold

‘allotment trading units’

(AflJs) for their actual seasonal

VON emissions.

Each year participating sources are issued

ATUs based on allotments set during initial issuance

of

the sources’ CAAPP permits.

These allotments

are

established from historical VON emissions or ‘baseline

emissions’ lowered to provide the emissions reductions

from stationary

sources required for reasonable further

progress.

ny December

31

of each year,

the end of the reconciliation

period following the seasonal allotment period, each

source should have sufficient ATUs

in

its transaction

account to cover

its actual VON emissions during the

preceding season.

A transaction account’s balance as

of

December 31 will include any valid ATU transfer agreements

entered into as

of December 31 of the given year,

provided

such agreements are promptly submitted to the Illinois EPA

for entry into the transaction account database.

The

Illinois EPA will then retire ATUs in sources’

transaction

accounts in amounts equivalent to their seasonal

emissions.

When

a source does not appear to have

sufficient ATUs

in its transaction account,

the Illinois

EPA will

issue a notice to the source to begin the process

for Emissions Excursion Compensation.

In addition

to receiving ATUs pursuant to their

allotments, participating sources may also obtain ATU5

from the market,

including ATUs bought

from other

participating sources and general participants in the ERNS

that hold ATUs

(35 TAt 205.630)

and ATU5 issued by the

Illinois EPA as

a consequence of VOM emissions reductions

from an Emissions Reduction Cenerator or

an Intersector

Transaction

(35 lAO 205.600 and 35 IAC 205.510).

During

the reconciliation period,

sources may also buy ATtJs from

a secondary reserve of ATUs managed by the Illinois

EPA,

the ‘Alternative Compliance Market Account’

(ACMA)

(35

tAO

205.710).

Sources may also transfer or sell

the ATU5 that

they hold to other sources or participants

(35 lAO

205.630).

6.2.2

Applicability

Emissions of VON from the source during the seasonal

allotment period from May

1 through September

30

of each

24

---

year shall not exceed

15

tons,

not including VON emissions

from insignificant emission units and activities as

identified in Section

3 of this permit.

This limitation

is established at the request of the source to exempt it

from

the requirements of

35 TAC Part 205,

Emissions

Reduction Market System (ERM5)

,

pursuant to

35 lAO

205.205.

6.2.3

Recordkeeping and Reporting

a.

The Permittee

shall maintain the following records to

determine compliance with

the above limitation:

i.

Records of operating data and other

information for each individual emission unit

or

group of related emission units at the

source,

as specified in Sections

5 and

7 of

this permit,

as appropriate,

to determine

actual VOM emissions during

the seasonal

allotment period;

ii.

Records of the VON emissions,

in tons, during

the seasonal allotment period, with supporting

calculations,

for each individual emission

unit or group

of related emission units

at the

source, determined in accordance with the

procedures specified in Sections

5

and

7 of

this permit;

and

iii.

Total VON emissions from the source,

in tons,

during each seasonal allotment period.

b.

The Permittee shall

submit the seasonal emissions

component

of the Annual Emissions Report by October

31 of each year,

reporting actual emissions

of VON

during the seasonal allotment period,

in accordance

with 35 TAO 205.205(b) and 35 TAO 205.300.

c.

In the event that

the source’s VON emissions during

the seasonal allotment period exceed 15

tons,

the

source shall

no longer be exempt from the ERMS and

beginning with the following seasonal allotment

period,

shall comply with 35 lAO Part 205,

by holding

allotment trading units

(ATUs)

for its VON emissions

during each seasonal allotment period..

Exceedance

not a violation of this p~rmit

or

of 35

IAC 205 for the season in which the source

exceeded 15 tons.

25

---

6.3

Acid Rain Program

6.3.1

Applicability

Under Title IV

of the OAA,

Acid Deposition Control, this

source is an affected source and the following emission

units

at the source are affected units

for acid

deposition:

Boilers

1,

2,

3, 4,and

5,

6,

and

7

Note:

Title IV of the

CAA,

and other laws and regulations

promulgated thereunder,

establish requirements for

affected sources related to control

of emissions

of

pollutants that contribute

to acid rain.

For purposes

of

this permit,

these requirements are referred to as Title

IV provisions.

6.3.2

Applicable Emission Requirements

The owners and operators of the source shall not violate

applicable Title IV provisions.

~-ri—-pa*-E.le*~.e*,—-8?Q,,

~

by ~0

CFn

Part 7?

an

alltcscd by an ~cid nain Permit (ccc

a4ee—Seet-fea-4-94-,-—.-502

emissions

of

the

affected

units

shall

not exceed any allowances

that the source lawfully

holds under Title IV provisions.

section

39.5(7) (g)

and

(17) (1)

of the Act~

Note:

Affected sources must hold

502 allowances

to

account for the 503 emissions from affected units at the

source that

are subject to Title IV provisions.

Each

allowance is

a limited authorization to emit up to one ton

of

502 emissions during or after a specified calendar

year.

The possession

of allowances

does not authorize

exceedances of applicable emission standards

or violations

of ambient air quality standards.

6.3.3

Monitoring, Recordkeeping and Reporting

The owners and operators

of the source

and,

to the extent

applicable,

their designated

representative,

shall comply

with applicable requirements for monitoring,

recordkeeping

and reporting specified by Title

IV provisions,

including

40 CFR Part

75.

Section

39.5(7)(b) and 17(m)

of the ActJ

Note:

As further addressed by section

7 of this permit,

the following emission determination methods are currently

being used for the affected units

at this source.

NO,:

Continuous Emissions Monitoring

(40 CER 75.12)

SO;.:

Continuous Emissions Nonitoring

(40 CER 75.11)

Opacity:

Continuous Emissions Monitoring

(40 CFR 75.14)

CO:

Continuous Monitoring for carbon dioxide

(40

CFR Part 75.13)

6.3.4

Acid Rain Permit

26

---

The owners and operators of the source shall comply with

the terms and conditions of the sources Acid Rain permit.

Section

39.5(17) (1)

of the Act)

Note:

The source is subject

to an Acid Rain permit, which

was issued pursuant

to Title IV provisions,

including

Section 39.5(17)

of

the Act.

Affected sources must

be

operated in compliance with their Acid Rain permits.

This source’s Acid Rain permit

is incorporated by

reference into this permit and a copy of the current Acid

Rain permit is included as Attachment

S of this permit.

Revisions and modifications of this Acid Rain permit,

including administrative amendments and automatic

amendments

(pursuant

to Sections

408(b)

and 403(d)

of the

CAA or regulations thereunder)

are governed by Title

IV

provisions,

as provided by section 39.5(13) (e)

of the Act.

Accordingly,

revision or renewal

of the Acid Rain permit

may be handled separately from

this CAAPP permit and a

copy of the new Acid Rain permit may be included in this

permit by administrative amendment.

6.3.5

Coordination with Other Requirements

a.

This permit does not contain any conditions that are

intended to interfere with or modify the requirements

of Title

IV provisions.

In particular,

this permit

does not restrict the flexibility under Title

IV

provisions of the owners and operators

of this source

to amend

their Acid Rain compliance plan.

Section

39.5(17) (h)

of the Act

b.

Where another applicable requirement of the CAA is

more stringent than an applicable requirement of

Title IV provisions,

both requirements are

incorporated into this permit and are enforceable and

the owners and operators

of the source shall comply

with both requirements.

Section

39.5(7) (h)

of the

Act)

27

---

7.0

UNIT SPECIFIC CONDITIONS

7.1

noilers

(Subject to NSPS

-

40 CFR Subpart

0)

7.1.1

Description

The Pernittee operates natural gas and/or oil fired

boilers for electric generation.

The boilers, which were

built

in

1977 and 1978,

have nominal capacities of 5,187

or 5,237 rnmntu/hour each.

7.1.2

List of Emission Units and Air Pollution Control Equipment

Boiler

In

.

Description

Emission Control

.

Equipment

BLR1

Babcock and Wilcox Natural Gas

and/or Oil Fired Boiler

(5,237 Nominal mrnntu/hr)

Low NOx Burners

B1R2

Babcock and Wilcox Natural Gas

and/or Oil Fired Boiler

(5,237 Nominal_nmiatu/hr)

tow NOx Burners

BLR3

Babcock and Wilcox Natural Gas

and/or Oil Fired Boiler

(5,237 Nominal mmmtu/hr)

Low NOx Burners

BLR4

Babcock and Wilcox Natural Gas

and/or Oil Fired Boiler

5,187 Nominal_rrnntu/hr)

Low NOx Burners

aLES

Babcock and Wilcox Natural Gas

and/or Oil Fired Boiler

(5,187 Nominal rnmmtu/hr)

Low NOx Burners

7.1.3

Applicability Provisions

a.

An ‘affected boiler” for the purpose of these unit~

specific conditions,

is

an individual boiler that has

a capacity in excess of 250 mmntu/hr that has the

capability of firing natural gas and/or oil for which

construction or modification conimenced after August

17,

1971,

as described

in Conditions 7.1.1 and 7.1.2.

b.

Startup Provisions

The Permittee is authorized to operate an affected

boiler in violation of the applicable standards

in

Conditions

5.2.2(b) and 7.1.4(b) (i)

(35 TAO 212.123),

Condition 7.1.4(b) (ii)

(35 IAC 212.206),

Condition

7.1.4(c)

(35

lAO

2l4.l21(bHl)

and

(2)),

Condition

7.1.4(d)

(35 lAO 216.121), and Condition 7.1.4(e)

(35

TAO 217.121 (a)

and

(b))

during startup subject to the

following provisions.

This authorization is provided

pursuant to

35 lAO 201.262,

as the Permittee

‘...

has

affirmatively demonstrated that all reasonable efforts

have been made

to minimize startup emissions,

duration

of individual startups

and frequency of startups.’:

i.

This authorization only extends for a period of

up to

18 hours following initial firing of fuel

for each startup event.

28

---

ii.

The Permittee

shall

conduct startup of

an

affected boiler in accordance with

the

manufacturers’

written instructions or other

written instructions maintained on site that

are

specifically developed

to minimize excess

emissions from startups and that

include,

at a

minimum,

the following measures:

A.

Review of the operational condition of an

affected boiler prior to initiating

startup of the boiler.

B.

Review of the operating parameters of

an

affected boiler during each startup as

necessary

to make appropriate adjustments

to the startup to reduce or eliminate

excess emissions.

iii.

The Permittee

shall

fulfill applicable

recordkeeping requirements of Condition

7.1.9(f).

c.

Nalfunction and Breakdown Provisions