BEFORE
THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
)
)
AMENDMENTS TO
35
ILL.
ADM. CODE 205,
)
EMISSIONS REDUCTION MARKET SYSTEM,
)
AND
35
ILL. ADM. CODE 211
)
NOTICE
RECE~~V~ED
CLERK’S OF~CE
JAN
18
21~5
STATE OF ~LUNO~S
PoUution Contro~
Board
R05-11
(Rulemaking-Air)
TO:
Dorothy Gunn
Clerk
Illinois Pollution ControlBoard
James0 R. Thompson Center
100 West Randolph St.,
Suite 11-500
Chicago, IL 60601
(Overnight Mail)
John Knittle
Hearing Officer
Illinois Pollution Control Board
2125
South First Street
Champaign, IL 61820
(Overnight Mail)
SEE ATTACHED SERVICE LIST
PLEASE TAKE NOTICE that I have today filed with the Office ofthe Clerk ofthe
Illinois Pollution Control Board the
TESTiMONY OF DAVID BLOOMBERG IN SUPPORT
OF
THE ENVIRONMENTAL PROTECTION AGENCY’S PROPOSAL TO AMEND 35
ILL.
ADM. CODE 205, AND 35
ILL. ADM. CODE 211
and ILLiNOIS ENVIRONMENTAL
PROTECTION AGENCY’S FIRST ERRATA SHEET TO ITS PROPOSAL FOR THE
AMENDMENTS
OF
35
ILL. ADM. CODE 205, AND
35
ILL. ADM. CODE 211, on behalfof
the Illinois
Environmental Protection Agency, a copy ofwhich is herewith served upon you.
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
DATED:
1021 North Grand Avenue East
P. 0. Box
19276
Springfield, IL
62794-9276
217/782-5544
By,~-
THIS FILING IS
SUBMITTED
ON RECYCLED PAPER
Charles E.
Matoesian
Assistant Counsel
Division ofLegal Counsel
R ~
E ~V E D
CLERK’S OFF!CE
BEFORE THE
ILLINOIS POLLUTION CONTROL BOARD
JAN
1 ~ 2005
STATE OF ~LUNOIS
IN THE MATTER OF:
)
Pollulion Control Board
)
AMENDMENTS TO
35
ILL. ADM. CODE 205,
)
R05-l
1
EMISSIONS REDUCTION MARKET SYSTEM,
)
(Rulemaking
-
Air)
AND
35
ILL. ADM. CODE 211
)
TESTIMONY
OF DAVID BLOOMBERG IN SUPPORT OF
THE ENVIRONMENTAL PROTECTION AGENCY’S
PROPOSAL TO
AMEND
35 ILL. ADM. CODE 205 AND 35
ILL.
ADM. CODE
211
Good afternoon. My name is David E. Bloomberg. I am employed by the Illinois
Environmental Protection Agency as the Compliance Unit Manager in the Compliance
and Enforcement Section within the Division ofAir Pollution Control. I have been at the
Agency in this capacity for eight months, and was previously an Environmental
Protection Engineer in the Air Quality Planning Section
for twelve and a halfyears. My
academic
credentials include a Bachelor ofScience degree in ceramic engineering from
the University ofIllinois at Champaign-Urbana.
Among my other duties, I am one ofthe Agency’s primary technical contacts for
questions dealing with the ERMS rule. I trained ERMS account
officers for two years
and
have written the fourERMS Annual Performance Review Reports published to date. I
have provided regulatory language and technical support for this rulemaking. I am here
today to provide testimony and to
answer questions that might arise regarding this
rulemaking.
As discussed in the Statement ofReasons, the 8-hour ozone standard has been in effe~tin
the Chicago area since last June. The
1-hour ozone standard will be revoked on June
15
ofthis year, meaning the Cl~icagoarea will change from a severe ozone nonattainment
area to a moderate one. With this change in designation will come a change in the
definition ofa major source ofvolatile organic material, or VOM. Major sources in areas
classified as severe are those with potential to emit 25 tons ofVOM or more per year.
Major sources in areas classified as moderate
are those with potential to
emit 100 tons of
VOM or more per year.
Such a change will mean many sources will no longerneed CAAPP permits.
Currently,
the applicability ofERMS is based in part upon a source requiring a CAAPP permit.
Thus, the change in classification for the Chicago areawould
mean numerous sources
could drop out ofthe program, causing an estimated loss ofapproximately 330 tons of
VOM emissions reductions for each seasonal allotment period. The changes proposed in
this rulemaking would not affect any new sources nor impose new emission limitations or
new control requirements. They are mostly focused on ensuring that the ERMS program
remains in place, in its current form, so as to maintain the required VOM emissions
reductions in the Chicago area.
In addition, when the Chicago area is redesignated to attainment for ozone, the proposed
changes to the ERMS rule would take this into account and continue the program to
ensure that emissions reductions already achieved would remain in place.
2
While the proposed modifications are documented in the Statement ofReasons, I will
briefly discuss a few ofthem here. In addition, I will discuss the errata sheet that we have
provided to the Board.
The definitions for “Participating Source” and “New Participating Source” are being
modified to reflect the change in what constitutes
a major source. Specifically, the
proposed definition encompasses the same sources that are currently included, but it is
worded differently to take into account the changing applicability level for CAAPP
permits. In other words,
this change is being made simply to make sure that sources
already subject to the ERMS
—
or those that would be subject in the future
—
will
still be
subject no matter what happens to the Chicago area’s attainment or nonattainment status.
The largest change being made to the rule is the addition ofSection 205.3 16, “Federally
Enforceable State Operating Permits for ERMS Sources.” Because sources in the ERMS
program will not necessarily be “major,” they will not all require CAAPP permits.
However, theywill still require federally-enforceable conditions, which can, be obtained
in
a FESOP. Thus,
all ERMS participants will be required to
have either a CAAPP permit
or a FESOP, even if they would otherwise be able to obtain a lifetime operating permit.
This new FESOP
section also describes how ERMS conditions will be transferred to
a
FESOP in the case ofa source changing from a CAAPP permit to a FESOP, and how•
new ERMS participants getting FESOPs will be handled by the Illinois EPA. Much ofthe
3
language is mirrored from Section 205.3
15,
the section on CAAPP permits forERMS
Sources.
The errata sheet provided by the Illinois EPA to the Board contains minor changes to
nineportions ofthe rule based on recent discoveries both internal to the Illinois EPA and
pointed out by IERG.
Several ofthe changes within the errata sheet are related to a discovery ofa minor hole in
the ERMS rule related to new participating sources. Specifically, several parts ofthe rule
fail to address that each new participating source may not immediately be in the ERMS
program. Rather, it is possible for a source to construct after May 1,
1999, and not be in
ERMS until a later date. As such, we made several changes to take this into account.
The correction ofthis issue relates to Numbers
1, 4,
5,
and 9 in the errata sheet. Number
1
addresses SectiQn 205.150(d). Taking into account the situation Ijust described, we have
proposed deleting the phrase referencing the date on which
a new participating source
commences operation
and replacing it with language that indicates the source needs to
hold ATUs for the season in which it becomes a newparticipating source.
The fourth
and ninth items listed on the errata sheet simply follow along with the first
change, removing reference to a newparticipating source commencing operation, and
instead allowing the reference to
Section 205.150(d) to explain the requirements
for
holding ATUs.
4
Number
5
is in Section 205.3 10(a). These changes
once again are related to the handling
ofnew participating sources. By making the changes to (a)(2) and (3), and adding (4), we
are covering the different possibilities for sources that will need to submit an ERMS
application.
Regarding items not related to the new participating source issue, errata sheet Item 2
deals with Section
205.150(0(2).
It was pointed out that the use ofthe term “new” three
times in the final sentence ofthis paragraph could be confusing. As such, we are
proposing a slight modification it for clarity. The intention ofthe sentence is simply to
note that if a source orportion ofa source had previously been subject to an offset ratio
and the offset ratio applicable to the Chicago area changes, the source or portion ofthe
source in question would still be held to
the previously-determined ratio, which could be
higher or lower than the newly-established ratio. In this way, sources would not be
penalized if, for example, the Chicago area were to be bumped up to a higher designation
ofozone nonattainment.
Similarly, there would be no backsliding if the Chicago area’s
ozone designation were to be lowered.
The third change appears in
Section
205.205(a).
The Illinois EPA had originally proposed
adding a line noting that participating sources taking the
15 ton-per-season exemption
still have to file seasonal emissions reports.
We recently noticed that while this
subsection implies that such a source also has to have a CAAPP permit or FESOP, it does
not expressly require
it. To avoid confusion, we are proposing the addition ofsuch a
5
requirement, keeping 15
ton-per-season exempt
sources in line with otherparticipating
sources.
The sixth change
is in Section 205.3 10(e). Based upon inquiry from IERG, the Illinois
EPA is
clarifying that public notice for a draft FESOP will be treated the same as public
notice for a draft CAAPP permit in fulfilling the requirement for a preliminarybaseline
determination.
Items 7 and 8 address Sections 205.3
15(f)
and 205.3 16(d). In both cases, the regulation
discusses transfer ofthe permit for an ERMS source. We realized that these only
addressed participating sources, so we added new participating sources.
This concludes my prepared testimony. I am now available to
answer any questions on
this
rulemaking.
6
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
iN THE MATTER OF:
)
)
AMENDMENTS TO 35 ILL. ADM. CODE 205,
)
R05-1
1
EMISSIONS REDUCTION MARKET SYSTEM,
)
(Rulemaking
-
Air)
AND35ILL.ADM.CODE211
)
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY’S FIRST ERRATA
SHEET TO ITS PROPOSAL
FOR THE AMENDMENTS OF 35 ILL. ADM.
CODE 205,
AND
35 ILL. ADM. CODE 211
NOW COMES the Illinois Environmental Protection Agency (“Illinois
EPA”), by
and through its attorney Charles Matoesian, and submits this First Errata Sheet to its
proposal for amendments to 35 Ill. Adm. Code 205 and 35
Ill. Adm.
Code 211.
The
Illinois EPA proposes the following amendment to the text ofthe rules submitted in its
proposal to the Board dated November 19, 2004:
1.
Amend Section 205.150(d) to read:
d)
At the end ofeachreconciliation period, on
and after the date on which the
source
commences operation beginning with the reconciliation period
immediately following the seasonal allotment period in which the source
first becomes a new participating source, as specified in
Section 205.2 10
ofthis Part, each new participating source shall:
1)
Except as provided in subsection (f) ofthis Section, ifIfthe new
participating source is a new major source pursuant to 35 Iii. Adm.
Code 203, hold ATUs in an amount not less than 1.3 times its
VOM emissions during the preceding seasonal allotment period; or
2)
If the new participating source is not a new major source pursuant
to
35 Ill. Adm. 203,
hold ATUs in an amount not less than its
VOM emissions during the preceding seasonal allotment period,
except as provided in Sections 205.220, 205 .225
and 205.750 of
this Part.
2.
Amend new Section
205.
50(f)(1) to read:
f)
1)
Ifthe nonattainment classification ofthe Chicago area for ozone is
changed such that the required offset ratio is no longer 1.3
to
1
and a new
offset ratio applies, as specified in 35
Iii. Adm.
Code 203.302, that ratio
shall then apply in lieu ofthe
1.3
to
1 ratio set forth in subsections (c)(2),
(d)(1), and
(e) ofthis
Section.
Such new ratio shall not apply to any part
ofa source or any modification aheady subject to the
1.3 to
1 ratio or
other previously-effective offset ratio established prior to the effective
date ofthe new ratio.
3.
Amend Section 205.205(a) to read.
Section 205.205
Exempt Source
a)
Any source that otherwise meets the criteria for participating sources shall
be
exempt from the requirements ofthis Part, except
that any such source
shall be required to obtain a CAAPP permit or FESOP and submit the
seasonal emissions component ofthe Annual Emissions Report as
specified in Section 205.300 ofthis Part, if the source accepts a
15 tons
per seasonal allotment period limit on its VOM emissions in its CAAPP
permit or FESOP for each seasonal allotment period in which the source
would be required to participate in the ERMS in accordance with the
following:
1)
Ifthe source would be required to participate in the ERMS
beginning with the
1999 seasonal allotment period in accordance
with Section 205.200~)fj~a3
of this Subpart, such source shall
apply for the applicable permit limitation by March
1,
1998; or
2)
If the source is required to participate in the ERMS in any seasonal
allotment period after 1999 because its VOM emissions increase to
10 tons or more in any seasonal allotment period beginning with
1999 in accordance with Section 205.200(b)~)
of this Subpart,
such source shall apply for the applicable permit limitation by
December
1
ofthe first year in which its seasonal emissions are at
least 10
tons.
4.
Amend Section 205.210(b) to
read:
b.)
Each new participating source shall
hold ATUs~
as specified in Section
205.150(d) ofthis Part, upon commencing operation.
2
5.
Amend Section 205.310(a) to read:
Section 205.310
ERMS
Applications
a)
The owner or operator ofeach participating source ornew participating
source shall submit to the Agency an ERMS application in accordance
with the following schedule:
1)
For a participating source with baseline emissions ofat least
10
tons of VOM, as determined in accordance with Section
205.320(a) ofthis Subpart, by March
1,
1998;
2)
For any source that first becomes a participating source or new
participating source because its VOM emissions increase
to
10
tons or greater during any seasonal allotment period beginning
with 1999, on orbefore December
1 ofthe year ofthe first
seasonal allotment period in which its
VOM emissions are at least
10 tons, provided that this emissions
increase is not a major
modification pursuant to 35
Ill. Adm.
Code 203-e~
3)
For a new participating source or for a majormodification ofany
source existing prior to May
1,
1999, that first becomes a
participating source or new participating source due to a major
modification is-subject to 35
Iii. Adm. Code 203 based on VOM
emissions, at the time a construction permit
application is
submitted or due for the source ormodification, whichever occurs
first~j.~
4)
For a source that will be
a new participating source when it
commences construction and that is also
a major new source under
35 Ill. Adm. Code 203 based on VOM emissions, at the time a
construction permit application is
submitted or due for the source,
whichever occurs first.
6.
Amend Section 205.310(e) to read:
e)
Within
120 days afterreceipt ofan ERMS application, the Agency shall
provide written notification to the source ofa preliminary baseline
emissions determination.
Public notice ofa draft CAAPP permit or
FESOP in accordance with Section 39.5(8) ofthe Act 415
ILCS
5/39.5(8)
shall fulfill this
requirement for a preliminary baseline
emissions determination if issued within
120 days.
3
7.
Amend Section 205.315(1) to read:
f)
When a CAAPP permit for a participating source or newparticipating
source is transferred from the currentpermittee to another person:
1)
In the case ofa name change ofthe participating source or new
participating source where ownership is not altered, appropriate
documentation shall be submitted to revise the Transaction
Account to reflect the name change; or
2)
Inthe case ofan ownership change of the participating source~
new participating source, the allotment shall also be transferred by
the owner or operator ofthe permitted source to
the new owner or
operator, or the newowner oroperator shall submit a statement to
the Agency certifying that such transferis not occurring and
demonstrating that necessary ATUs are or will be available by
other means for the intended operation ofthe source.
8.
Amend new Subsection 205.316(d) to read:
When a FESOP
for a participating source or new participating source is
transferred from the current permittee to another person:
fl
In the case ofa name change ofthe participating source or new
participating source where ownership is not altered, appropriate
documentation shall be submitted to revise the Transaction
-
Account to reflect the name change; or
In the case ofan ownership change ofthe participating source or
new participating source, the allotment shall also be transferred by
the owner or operator ofthe permitted source to the new owner or
operator, or the new owner oroperator shall submit a statement to
the Agency certifying that such transfer is not occurring and
demonstrating that necessary ATUs are or will be available by
other means for the intended operation ofthe source.
9.
Amend Section 205.400(f) to read:
Except
as provided in subsection (h) ofthis Section, any new participating
source shall not be issued ATUs by the Agency, but shall be required to
hold ATUs at the end ofthe reconciliation period as specified in Section
205.150(d) ofthis
Part for each seasonal allotment period in which it is
operational.
4
Respectfully submitted,
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
Charles E. Matoesian
DATED:
/~
/0
~
1021
North Grand Avenue East
P.O. Box
19276
Springfield, Illinois 62794-9276
(217) 782-5544
STATE OF ILLINOIS
)
)
SS
COUNTY OF SANGAMON
)
)
PROOF OF SERVICE
I, the undersigned, on oath state that I have served the attached TESTIMONY OF
DAVID BLOOMBERG IN SUPPORT OF
THE ENVIRONMENTAL PROTECTION
AGENCY’S PROPOSAL TO AMEND
35 ILL.
ADM. CODE 205,
AND 35 ILL. ADM.
CODE
211
and ILLINOIS ENVIRONMENTAL PROTECTION AGENCY’S FIRST ERRATA SHEET
TO ITS PROPOSAL
FOR THE AMENDMENTS OF
35 ILL. ADM. CODE 205, AND 35 ILL.
ADM. CODE 211
upon the person to
whom it is directed, by placing a copy in
an envelope
addressed to:
Dorothy Gunn
John Knittle
Clerk
Hearing Officer
Illinois Pollution Control Board
Illinois Pollution Control Board
James R. Thompson Center
2125 South First Street
100 West Randolph, Suite 11-500
Champaign, IL 61820
Chicago, IL
60601
(Overnight Mail)
(Overnight Mail)
SEE ATTACHED SERVICE LIST
and mailing it from Springfield,
Illinois
on January
14, 2005
with
sufficient postage affixed
as indicated
above.
SUBSCRIBED
AND
SWORN TO BEFORE ME
this Fifteenth day of January,
2005
_________________________
NOTARY
OFftLINOIS
Notary
Public
~
SERVICE
LIST
Katherine Hodge
Hodge Dwyer Zeman
3150 Roland Ave.
P.O.
Box
5776
Springfield, IL 62705-5776
Shannon Bilbruck
Division ofLegal Counsel #21
Illinois EPA
1021
N. Grand Ave. East
P.O. Box
19276
Springfield, IL 62794-9276
N. LaDonna Driver
Hodge Dwyer Zeman
3150 Roland Ave.
P.O. Box 5776
Springfield, IL 62705-5776
General Counsel
Office ofLegal Counsel
Illinois Department ofNatural Resources
One Natural Resources Way
Springfield,
IL 62702
Susan Adams
Regulatory Counsel
Stateside Associates
2300 Clarendon Blvd., Suite 407
Arlington, VA 22201
Brian Urbaszewski
American Lung Association
1140 W. Washington
Chicago, IL 60607
Robert A. Messina
Illinois Environmental Regulatory Group
3150 RolandAve.
Springfield,
IL 62703
Gale W. Newton
Hodge DwyerZeman
3150 Roland Ave.
P.O. Box
5776
Springfield,
IL 62705-5776
Matthew Dunn
Chief
Division ofEnvironmental Enforcement
Office ofthe Attorney General
188 West Randolph St.,
20th
Floor
Chicago, IL
60601
