ILLINOIS POLLUTION CONTROL BOARD
November 6, 2006
IN THE MATTER OF :
)
PROPOSED NEW CAIR SO 2 , CAIR NOx
)
R06-26
ANNUAL AND CAIR NO, OZONE SEASON)
(Rulemaking - Air)
TRADING PROGRAMS, 35 ILL. ADM .
)
CODE 225, CONTROL OF EMISSIONS
FROM LARGE COMBUSTION SOURCES,
SUBPARTS A,C,D and E
HEARING OFFICER ORDER
On May 30, 2006, the Board received a rulemaking proposal submitted by the Illinois
Environmental Protection Agency (Agency) that 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 (affected units), on an annual basis and on an ozone season basis of
each calendar year
. The Agency proposes the adoption of the Clean Air Interstate Rule (CAIR)
SO2 trading program, the CAIR NO, Annual trading program and the CAIR NO, Ozone Season
trading program to accomplish this objective
.
October 10, 2006 Hearing
A hearing in this matter was held from October 10 through October 12, 2006, at the
Illinois Environmental Protection Agency Office Building Training Room, 1214 West, 1021
North Grand Avenue East, North Entrance, in Springfield
. A second hearing has been noticed to
commence at 9 :00 a .m. on November 28, 2006 at the James R
. Thompson Center, Room 2-025,
100 West Randolph Street in Chicago.
At the first hearing, Rachel Doctors and John Kim appeared and participated on behalf of
the Agency
. Kathleen Bassi and Stephen Bonebrake appeared and participated on behalf of
Dynegy Midwest Generation, Inc .
; Midwest Generation, LLC
; and Southern Illinois Power
Cooperative
. David Rieser appeared and participated on behalf of Ameren Energy Generating
Company, Ameren Energy Resources Generating Company, and Electric Energy, Inc
. Steven J .
Murawski appeared and participated on behalf of Zion Energy, LLP
. Faith E. Bugel appeared
and participated on behalf of the Environmental Law and Policy Center
. Bruce E
. Nilles
appeared and participated on behalf of the Sierra Club
.
The Agency offered the testimony of Gary E
. Beckstead, David E
. Bloomberg, Roston
Cooper, Rory Davis, Robert Kaleel, Yoginder Mahajan, James R
. Ross, and Jacquelyn Sims at
the first hearing
. The complete transcript of the first hearing was received at the Board on
October 17, 2006
. Twenty-one exhibits were offered at the hearings
. A summary of the exhibits
offered at hearing and their disposition is contained in the attached exhibit list
.
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The October 10, 2006 hearing also addressed the Board's June 28, 2006 request that the
Department of Commerce and Economic Opportunity (DCEO) conduct an economic impact
study for the rulemaking . No study was submitted by the DCEO, and no comments concerning
the DCEO's decision not to perform a study were received at the hearing .
At the first hearing, the Agency was directed to provide comments or additional
information on a number of issues . The Agency is directed to file its post-hearing comments on
or before October 27th. The mailbox rule will not apply .
November 28, 2006 Hearing
As stated, the second hearing is currently scheduled to begin on November 28, 2006 .
Please note that the start time of the hearing has been changed . The hearing will now commence
at 1 :00 p.m. on November 28, 2006, instead of the afore-noticed 9 :00 a.m. The Board will post
the appropriate notice at the hearing location on November 28, 2006 . The change in start time
will also be reflected on the Board's calendar at littp ://www.ipeb .state.iI .us.
Any persons wishing to testify at the November 28, 2006 hearing must prefile the
testimony and any related exhibits with the Board and serve the hearing officer and all persons on
the service list no later than November 10, 2006 . The mailbox rule will not apply. Persons may
receive a copy of the service list by contacting the hearing officer or Nancy Miller at (217) 278-
3109.
Anyone wishing to testify or submit an oral public comment is urged to prefile testimony
to ensure the ability to testify . Persons who do not prefile, and those seeking to provide an oral
public comment, will only be allowed to do so at the close of the prefiled testimony if time
permits. As always, anyone may file a written public comment with the Board .
Additional Considerations
The parties are directed to participate in a final pre-hearing telephone status conference
on November 21, 2006, at 10 :00 a.m. The Agency shall initiate the call
. At that time, the parties
must be prepared to address any final pre-hearing issues .
Once the public comment period expires, the Board will review the record and consider
the proposal . Questions concerning the status of the rulemaking should be addressed to the
hearing officer or Nancy Miller at (217) 278-3109 .
IT IS SO ORDERED .
John Knittle
Hearing Officer
Illinois Pollution Control Board
2125 South First Street
Champaign, Illinois 61820
(217) 278-3109
3
R06-26
Hearing of October10, 2006 through October 12, 2006
Exhibit List
Exhibit
Description
Status
Agency Exhibit 1
Errata Sheet
Admitted
Agency Exhibit 2
Testimony of James R . Ross
Admitted
Agency Exhibit 3
CAIR Overhead Presentation
Admitted
Agency Exhibit 4
Testimony of Robert Kaleel
Admitted
Agency Exhibit 5
10/06/06 Draft Summary of Potential
Emission Reductions and Power Offsets
Admitted
Agency Exhibit 6
Testimony of Gary E . Beckstead
Admitted
Agency Exhibit 7
Testimony of Yoginder Mahajan
Admitted
Agency Exhibit 8
Testimony of Jacquelyn Sims
Admitted
Agency Exhibit 9
Testimony of Rory Davis
Admitted
Agency Exhibit 10
Testimony of David E . Bloomberg
Admitted
Agency Exhibit 11
CASA Overhead Presentation
Admitted
Agency Exhibit 12
Testimony of Roston Cooper
Admitted
Agency Exhibit 13
Electric Power Plant and Generating Unit
Construction Project Listing
Admitted
Agency Exhibit 14
Output-Based Environmental Regulation
Article
Admitted
Agency Exhibit 15
September 16, 2005 USEPA Draft Report Admitted
Agency Exhibit 16
Alternative NO, Allowance Allocation
Language
Admitted
Agency Exhibit 17
Resource Guide to Creating a State
Emissions Allowance Set Aside Program
Admitted
Agency Exhibit 18
Compilation of Air Pollutant Emission
Factors
Admitted
Agency Exhibit 19
Fluidized Bed Combustion Program Facts Admitted
Agency Exhibit 20
Sample Allowance Calculations
Admitted
Midwest Generation Exhibit 1
Statewide Coal-Fired Electric Utilities Data
Admitted
