Respondent.

)

)

)

0~ç~oq~

)

PCB64~

(Tax Certification)

)

)

)

)

NOTICE

DorothyM. Guim, Clerk

Illinois Pollution Control Board

JamesR. Thompson Center

100 West Randolph Street, Suite.

11-500

Chicago, Illinois 60601

Steve Santarelli

Illinois Department ofRevenue

101

West Jefferson

Post Office Box 19033

Springfield, Illinois 62794

James L. Perry,

General Manager

Holland Energy, LLC

Rural Route 2, Box 270A

Beecher City, illinois

62414-0065

Dan Skowronski,

Counsel

Constellation Power Source Holdings

100 Market Place, Suite 500

Baltimore, Maryland 21202

PLEASE TAKE

NOTICE

that I have today filed with the Office of the Clerk of the Pollution

Control Board an

APPEARANCE

AND THE

RECOMMENDATION

of the Illinois Environmental

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

ENVIRONMENTAL PROTECTION AGENCY

OF THE STATE OF ILLINOIS

DATED:

July 13, 2004

Illinois Environmental Protection Agency

1021 North Grand Avenue East

Post Office Box 19276

Springfield, Illinois 62794-9276

217-782-5544

By:

J

es

lien Day

As

ant Counsel

Division of Legal Counsel.

,~

JUL

142004

BEFORE THE

ILLINOIS POLLUTION CONTROL BOARDSTATE OF ILLINOIS

POfl~tj~~

Control 8oard

THISFILING IS

SUBMITTED ON RECYCLED PAPER

---

RECEIVED

CLERK’S OFFICE

JUL

142004

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

STATE

OF

ILLINOIS

HOLLAND ENERGY, LLC-BEECHER CITY

)

Pollution

Control

Board

(Property Identification Numbers

)

0524-01-00-100-004, 0825-16-00-100-004,

)

0825-16-00-300-002, 0825-16-00-300-003,

)

0825-16-00-200-002)

)

U~

Petitioner,

)

PCB 44~

)

(Tax Certification)

ILLINOIS ENVIRONMENTAL

)

PROTECTION AGENCY

)

Respondent.

)

APPEARANCE

The undersigned, as one of its

attorneys, hereby enters an

APPEARANCE

on behalf of the

Respondent, Illinois Environmental Protection Agency.

ENVIRONMENTAL PROTECTION

AGENCY OF THE STATE OF ILLINOIS

By:_______

Jamks

4llen Day

Assis’tafit Counsel

Division of Legal Counsel

DATED: July 13, 2004

Illinois Environmental Protection Agency

1021 North

Grand Avenue East

Post Office Box

19276

Springfield, Illinois 62794-9276

217-782-5544

THIS FILING IS SUBMITTED

ONRECYCLED PAPER

---

RECEIVED

CLERK’S OFFICE

JUL

14

2004

STATE OF ILUNOIS

BEFORE THE ILLINOIS POLLUTION CONTROL BOA

OIIUtIOfl

Control Board

HOLLAND ENERGY, LLC-BEECHER CITY

)

0

(Property Identification Numbers

)

PCB ~

0524-01-00-100-004, 0825-16-00-100-004,

)

(Tax Certification)

0825-16-00-300-002, 0825-16-00-300-003,

)

0825-16-00-200-002)

RECOMMENDATION

Now Comes the Illinois Environmental Protection Agency (“Illinois EPA”) by James Allen

Day, one ofits attorneys, and pursuant to Section 125.204 ofthe Illinois Pollution Control

Board’s (Board) regulations files the following Recommendation regarding the tax certification

ofwater pollution control facilities pursuant to 35 Ill.

Adm. Code

125.204.

1)

On December 31, 2002, the Illinois EPA received a request from Holland Energy, LLC-

Beecher City for an Illinois EPA recommendation regarding the tax certification ofwater

pollution control facilities pursuant to

35

111. Adm. Code

125.204, and noted the request

as log number TC-37-02. (Exhibit A)

2)

The applicant’s address is:

Holland Energy, LLC

R.R.

3 Box 270A

Beecher City, Illinois 62414-0065

3)

The water pollution control facilities in this request are located at Section

16, Township

9

North, Range 4 East ofthe

3id

Principal Meridian in Shelby County, Illinois

at the above

street address and include the following two distinct facilities:

a)

The effluent discharge facilities consisting ofan ultrasonic flow meter,

backpressure regulating valve, gravity discharge well, 6 mile gravity discharge

pipe, and river diffuser.

(These facilities are further described in Exhibit A.)

b)

The river intake structure consisting ofan intake structure with three submersible

THIS FILING IS SUBMITTED

ON RECYCLED PAPER

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•

pumps (two operating and

one standby) to supply

5556

gallons per minute of

make up waterto the plant, two 450 kilowatt heaters, a motorized bridge crane

with 3 ton capacityhoist,

a 6-mile long intake pipeline and all appurtenances to

supply source water to

the plant.

(These facilities are further described in Exhibit

A.)

4)

Section

11-10 ofthe Property Tax Code,

35

JLCS 200/11-10 (2000), defines “pollution

control facilities” as: “any system, method, construction,

device or appliance appurtenant

thereto or any portion ofany building or equipment, that

is designed, constructed,

installed or operated for the primary purpose of:

(a) eliminating, preventing, or reducing

air or waterpollution

..

.

or (b) treating, pretreating, modifying or disposing ofany

potential solid, liquid

or gaseous pollutant which if released without treatment,

pretreatment modification or disposal might be harmful, detrimental oroffensive to

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

5)

Pollution control facilities are entitled

to preferential tax treatment, 35 ILCS 200/11-5

(2000).

6)

Based

on the information in the application and the purpose ofthe effluent discharge

facilities (to transport effluent to a larger receiving stream, provide cooling to the cooling

tower blowdown and

accelerate mixing in the Kaskaskia River), it is the Illinois EPA’s

engineering judgment that the described facilities may be considered “pollution control

facilities,” pursuant to 35

Ill. Adm.

Code 125.200(a), with the primarypurpose of

•

eliminating, preventing, or reducing waterpollution, or as otherwise provided in 35 Ill.

Adm. Code

125.200.

Therefore, the facilities are eligible for tax certification from the

THIS FiLING IS SUBMITTED

ON RECYCLED PAPER

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Board.

7)

Based on the information in the application and the purpose ofthe river intake structure

(to

supply source water to the plant for operational purposes), it is the Illinois EPA’s

engineeringjudgment that the described facilities are not “pollution control facilities,”

pursuant to

35 Ill. Adm. Code 125.200(a), with the primary purpose of eliminating,

preventing, or reducing waterpollution, or as otherwiseprovided in 35 Ill.

Adm.

Code

125.200.

Therefore, the facilities are not eligible for tax certification from the Board.

8)

Therefore, the Illinois EPA recommends that the Board issue the requested tax

certification for the effluent discharge facilities and deny the requested tax certification

forthe river intake structure.

Illinois Environmental Protection Agency,

By:~~~t~

\~~nes

Allen Day

Assistant Counsel

Division ofLegal Counsel

July

13, 2004

Illinois Environmental Protection Agency

1021 North Grand Avenue East

Post Office Box

19276

Springfield, Illinois

62794-9276

217-782-5544

THIS FILING IS SUBMITTED

ON RECYCLED PAPER

---

)

COUNTY OF SANGAMON

)

)

)

)

PROOF OF SERVICE

I, the undersigned, on oath state that I have served the attached APPEARANCE AND

RECOMMENDATION,

upon the person to whom it is directed, by placing a copy in an

envelope addressed to:

Dorothy M. Gunn, Clerk

Illinois Pollution Control Board

James R. Thompson Center

100

WestRandolph Street, Suite.

11-500

Chicago, Illinois 60601

Steve Santarelli

Illinois Department ofRevenue

101 West Jefferson

Post Office Box

19033

Springfield, Illinois

62794

James L. Perry, General Manager

Holland Energy, LLC

Rural Route 2, Box 270A

Beecher City, Illinois 62414-0065

Dan Skowronski, Counsel

Constellation Power Source Holdings

100 Market Place,

Suite 500

Baltimore,

Maryland 21202

and mailing it from Springfield, Illinois on

July

13,

2004 with sufficient postage affixed for first

class mail.

SUBSCRIBED AND SWORN TO BEFORE ME

o~r\o1~

P

this thirteenth day ofJuly, 2004

Notary Public

OFFICIAL

SEAL

•

BRENDA BOEHNER

~:

NOTARY

PUBLIC.

STATE

OF

ILUNOI~$~

~:MYCOMMISSION

EXPIRES

U.14-2005t

THIS FILING IS SUBMITTED ON RECYCLED PAPER