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Rod R. Blagojevich
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ILLINOIS POLLUTION CONTROL BOARD
June 28, 2006
Jack Lavin, Director
Department of Commerce and Economic Opportunity
620 East Adams Street, S-6
Springfield, Illinois 62704
Re
:
Request for Economic Impact Study for
: In the Matter of: Proposed New
Clean Air Interstate Rule(CAIR) S02, NOx Annualand NOx Ozone Season
Trading Programs, 35111.Adm. Code225 .
Subparts A, C,D and E (R06-26)
Dear Director Lavin :
On June 15, 2006, the Pollution Control Board (Board), accepted for hearing
a May 30, 2006 proposal filed by the Illinois Environmental Protection Agency
(Agency) to add new regulations to the Board's air rules
.
In the Matter of: Proposed
New Clean Air Interstate Rule (CAIR) 502, NOx Annual and NOx Ozone Season
Trading Programs, 35 111. Adm. Code 225 .
Subparts A, C, D and E, R06-26 .
I am writing to request that your Department conduct an economic impact
study concerning this proposal. Please note that the Agency has requested that the
Board expedite its handling of this proposal . Additionally, the potential economic
effects of these CAIR rules has already been the subject of discussion during the
course of the Board's hearings June 12-23, 2006 concerning Governor Blagojevich'
mercury reduction initiative . Proposed New 35 111. Adm. Code 225 Control of
Emissions From Large Combustion Sources (Mercury), R06-25
.
The R06-26 CAIR rulemaking proposes a new Part 225 to reduce intrastate
and interstate transport of sulfur dioxide (SO2) and nitrogen oxides (NO.) emissions
from fossil fuel-fired electric generating units on an annual basis and on an ozone
season basis of each calendar year. The Agency proposed the adoption of the CAIR
SO2 trading program, the CAIR NO, Annual trading program and the CAIR NO,
Ozone Season trading program to accomplish this objective
.
In support of the amendments that were filed with the Board, the Agency
asserted that this proposal is intended to satisfy Illinois' obligations under the United
States Environmental Protection Agency's (USEPA) Rule to Reduce Interstate
Transport of Fine Particulate Matter and Ozone; Revisions to Acid Rain Program
;
Revisions to the NO, SIP Call, (CAIR), 70Fed. Reg . 25162 (May 12, 2005). The
proposal is also intended to address the Agency's obligation to meet Clean Air Act
(CAA) requirements for the control of fine particulate matter (PM2.5) and ozone in
the Chicago and Metro East/St. Louis nonattainment areas
.
ORIGINAL
Since 1998, Section 27 (b) of the Environmental Protection Act has required
the Board to :
1) "request that the Department of Commerce and Economic Opportunity
(formerly the Department of Commerce and Community Affairs) conduct a
study of the economic impact of the proposed rules. The Department may
within 30 to 45 days of such request produce a study of the economic impact
of the proposed rules. At a minimum, the economic impact study shall
address a) economic, environmental, and public health benefits that may be
achieved through compliance with the proposed rules, b) the effects of the
proposed rules on employment levels, commercial productivity, the economic
growth of small businesses with 100 or less employees, and the State's
overall economy, and c) the cost per unit of pollution reduced and the
variability of company revenues expected to be used to implement the
proposed rules; and
(2) conduct at least one public hearing on the economic impact of those
rules. At least 20 days before the hearing, the Board shall notify the public of
the hearing and make the economic impact study, or the Department of
Commerce and Economic Opportunity's explanation for not producing an
economic impact study, available to the public. Such public hearing may be
held simultaneously or as a part of any Board hearing considering such new
rules." 415 ILCS 5/27(b) (2004) .
The Board is in the process of scheduling hearings in this rulemaking . As
earlier-stated, the Board has received a request from the Agency that the Board
expedite this proposal. I would greatly appreciate a response from you concerning
DCEO's position on whether it will perform the economic impact study as soon as is
possible .
If I, or my staff, can provide you with any additional information, please let
me know .
Thank you for your early response .
Sincerely,
G. Tanner Girard
Acting Chairman
Pollution Control Board
Cc: Warren Ribley, DCEO
Dorothy M. Gunn, Clerk of the Board
Erin Conley, Rules Coordinator
