ILLINOIS POLLUTION CONTROL BOARD
July 22, 2004
HOLLAND ENERGY, LLC-BEECHER CITY
(Property Identification Numbers 0524-01-
00-100-004, 0825-16-00-100-004, 0825-
16-00-300-003, 0825-16-00-200-002),
Petitioner,
v.
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY,
Respondent.
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PCB 05-4
(Tax Certification - Water)
ORDER OF THE BOARD (by J.P. Novak):
On July 14, 2004, the Illinois Environmental Protection Agency (Agency) recommended
that the Board certify certain effluent discharge facilities of Holland Energy, LLC (Holland
Energy) at its water pollution control facilities as “pollution control facilities” for preferential tax
treatment under the Property Tax Code (35 ILCS 200/11-5
et seq.
(2002)). But, in the same
filing, the Agency recommended denial of tax certification to certain river intake structure
facilities. The Agency filed the recommendation under Part 125 of the Board’s procedural rules
(35 Ill. Adm. Code 125).
In this order, the Board describes the legal framework for tax certifications, discusses the
Agency’s recommendation, and certifies that Holland Energy’s facilities are pollution control
effluent discharge facilities. The Board takes no
action today on the negative recommendation as the river intake structure, since Holland Energy
may file a petition to contest it on or before August 18, 2004.
LEGAL FRAMEWORK
Under the Property Tax Code, “[i]t is the policy of this State that pollution control
facilities should be valued, at 33
⅓
% of the fair cash value of th eir economic productivity to their
owners.” 35 ILCS 200/11-5 (2002);
see also
35 Ill. Adm. Code 125.200(a)(2). “For tax
purposes, pollution control facilities shall be certified as such by the Pollution Control Board and
shall be assessed by the Department [of Revenue].” 35 ILCS 200/11-20 (2002);
see also
35 Ill.
Adm. Code 125.200(a).
Under Section 125.202 of the Board’s procedural rules, a person may submit an
application for tax certification to the Agency. 35 Ill. Adm. Code 125.202. If the Agency
receives a tax certification application, the Agency must file with the Board a recommendation
on the application, unless the applicant withdraws the application. 35 Ill. Adm. Code 125.204(a).
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Among other things, the Agency’s filing must recommend that the Board issue or deny tax
certification. 35 Ill. Adm. Code 125.204(a)(4). If the Board finds “that the claimed facility or
relevant portion thereof is a pollution control facility . . ., the Pollution Control Board . . . shall
enter a finding and issue a certificate to that effect.” 35 ILCS 200/11-25 (2002);
see also
35 Ill.
Adm. Code 125.216(a).
AGENCY RECOMMENDATION
The Agency states that it received a tax certification application from Holland Energy for
its water pollution control facilities on December 31, 2002. Agency Recommendation (Agency
Rec.) at 1. On July 14, 2004, the Agency filed a recommendation on the application with the
Board. The Agency’s recommendation identifies two separate sets of facilities at issue:
Effluent discharge facilities consisting of an ultrasonic flow meter, backpressure
regulating valve, gravity discharge well, 6-mile gravity discharge pipe, and river diffuser.
Agency Rec. at 1.
A river intake structure consisting of an intake structure with three submersible pumps
(two operating and one standby) to supply 5556 gallons per minute of make-up water to
the plant, two 450-kilowatt heaters, a motorized bridge crane with 3-ton capacity hoist, a
6-mile long intake pipeline and all appurtenances to supply source water to the plant.
Agency Rec. at 1-2.
The Agency’s recommendation also identifies the location of the facilities: Section 16,
Township 9 North, Range 4 East of the Third Principal Meridian in Shelby County.
Id.
at 1.
The Agency makes separate recommendations relating to the two separate sets of
facililities:
Effluent discharge facilities:
The Agency reco
mmends that the Board certify that the identified
facilities are pollution control facilities as defined in Section 11-10 of the Property Tax Code (35
ILCS 200/11-10 (2002)) because the primary purpose of the facilities is eliminating, preventing,
or reducing water pollution. Agency Rec. at 2.
River intake structure facilities:
The Agency recommends that the Board deny certification
that the identified facilities are pollution control facilities as defined in Section 11-10 of the
Property Tax Code (35 ILCS 200/11-10 (2002)). Agency Rec. at 3. Holland Energy has 35 days
from when it was served with a copy of the Agency’s recommendation to contest that
recommendation to the Board. 35 Ill. Adm. Code 125.206. Any petition for review must be
filed on or before August 18, 2004. After that, the Board will determine what further actions
may be appropriate.
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TAX CERTIFICATE
Effluent Discharge Facilities
The Board finds and certifies that Holland Energy’s effluent discharge facilities identified
in this order are pollution control facilities under the Property Tax Code (35 ILCS 200/11-10
(2002)). Under Section 11-25 of the Property Tax Code, the effective date of this certificate is
“the date of application for the certificate or the date of the construction of the facility, which
ever is later.” 35 ILCS 200/11-25 (2002);
see also
35 Ill. Adm. Code 125.216(a). Section
125.216(d) of the Board’s procedural rules states that the Clerk “will provide the applicant and
the Agency with a copy of the Board’s order setting forth
the Board’s findings and certificate, if
any
.” 35 Ill. Adm. Code 125.216(d) (quoting in italics 35 ILCS 200/11-30 (2002)). The Clerk
therefore will provide Holland Energy and the Agency with a copy of this order.
IT IS SO ORDERED.
I Dorothy M. Gunn, Clerk of the Illinois Pollution Control Board, certify that the Board
adopted the above order on July 22, 2004, by a vote of 5-0.
Dorothy M. Gunn, Clerk
Illinois Pollution Control Board
