BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
1
PROPOSED NEW CAIR SOz, CAIR NOx
ANNUAL TRADING PROGRAMS,
R06-26
35
1LL.ADM.CODE 225,
(Rulemaking
-
Air)
CONTROL OF EMISSIONS FROM LARGE
)
COMBUSTION SOURCES,
SUBPARTS A, C, D, AND E
1
NOTICE OF FILING
Dorothy Gunn, Clerk
Illinois Pollution Control Board
James R. Thompson Center
Suite 11-500
100 West Randolph
Chicago, Illinois 60601
Persons included on the
ATTACHED SERVICE LIST
PLEASE TAKE NOTICE that, on behalf of Dynegy Midwest Generation, Inc., and the
Illinois Environmental Protection Agency, we have today filed with the Office of the Clerk of the
Pollution Control Board
JOINT MOTION TO AMEND PROPOSED RULEMAKING,
Dated: March 13,2007
Sheldon A. Zabel
Kathleen C. Bassi
Stephen
J. Bonebrake
SCHIFF
HARDIN, LLP
6600 Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
3
12-258-5500
Electronic Filing, Received, Clerk's Office, March 13, 2007
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
PROPOSED NEW CAIR
SOz, CAIR NOx
1
ANNUAL TRADING PROGRAMS,
1
)
RO6-26
35 1LL.ADM.CODE 225,
(Rulemaking
-
Air)
CONTROL OF EMISSIONS FROM LARGE
)
COMBUSTION SOURCES,
)
SUBPARTS A, C, D, AND E.
)
JOINT MOTION TO AMEND PROPOSED RULEMAKING
NOW COME Participant DYNEGY MIDWEST GENERATION, INC. ("Dynegy"), by
and through its attorneys, SCHIFF
HARDIN LLP; and Proponent ILLINOIS
ENVIRONMENTAL PROTECTION AGENCY ("Agency"), by and through its attorneys, and,
pursuant to 35
11l.Adm.Code
5
101.500, jointly move the Board to amend Section
225.465(b)(4)(B) of the proposed rule. In support of their Motion, Dynegy and the Agency state
as follows:
I.
On May 30,2006, the Agency submitted the above-captioned rulemaking to the
Board
2.
The Board held hearings in this matter commencing October 10,2006, in
Springfield, Illinois, and commencing November 28,2006, in Chicago, Illinois.
3.
Dynegy filed a Motion to Dismiss this rulemaking on November 30,2006
4.
Dynegy submitted substantial substantive comments on this proposed rule on
January 5,2007.
5.
Since that time, Dynegy and the Agency have engaged in discussions regarding
certain aspects of Dynegy's comments and concerns with the proposed rule.
Electronic Filing, Received, Clerk's Office, March 13, 2007
6.
As a result of those discussions, Dynegy and the Agency agree that Section
225.465(b)(4)(B) of the proposed rule should be amended, as follows:
Section 225.465
CASA Allowances
* * *
Section 225.465(h)(4)(B):
B)
For a haghouse project:
Where:
A=
The number of allowances for a particular
project.
MWh,=The number of MWh of electricity
generated during a control period or the portion of a
control period that the units were controlled by the
haghouse.
1)
If a bauhouse was not installed pursuant to a
consent decree or court order,
Q shall equal 0.2.
2)
If a baghouse was installed pursuant to a
consent decree or court order which assigns a
Q
factor, then
O
equals the factor established in the
consent decree or court order but must not exceed a
factor of greater than 0.2.
Electronic Filing, Received, Clerk's Office, March 13, 2007
31
If a baghouse was installed pursuant to a
consent decree or court order which does not assign
a
Q
factor. then Q shall equal:
P
=
If the most recent control period's average
PM emission rate was based on PM CEMS
data. P equals
1 .O; otherwise P equals
=
1.1.
ERQ
=
The magnitude of most recent control
period's
average PM emission rate in
lb/MWh exiting the baghouse, subiect to the
following limits:
If P
=
1.0 then 1/10
<
ERQ
<
2/10
If
ERa is less than the lower limit, the lower
limit shall be used. If
ERq is greater than
upper limit. the upper limit shall be used. If
ERq is not exvressed in lb/MWh. the
number must be converted into
lb1MWh
using a heat rate of I0 mmBtu/l MW.
7.
Amendment of the proposed rule as set forth above addresses Dynegy's concerns
regarding the manner in which the Clean Air Set-Aside ("CASA") provisions penalized sources
with consent decrees relative to their
baghouse projects, as expressed in its Comments filed
January 5,2007
8.
The Agency initially determined the appropriate number of CASA allowances for
which a
baghouse installed pursuant to a consent order or decree should be eligible based on two
principles: (I) the
baghouse should not be eligible for as large a number of allowances as a
baghouse installed for reasons other than those required by a consent order or decree, and (2) the
Electronic Filing, Received, Clerk's Office, March 13, 2007
number of eligible allowances should be consistent with allowances available for SO* and NOx
controls in recognition that the CAIR is designed to reduce particulate matter, the primary
pollutant targeted for reduction by a baghouse.
9.
After further consideration, the Agency has determined that, consistent with the
principle to seek the greatest emissions reductions possible, it is appropriate to revise the number
of allowances for which a
baghouse installed pursuant to a consent order or decree is eligible.
Specifically, the Illinois EPA agrees that the CASA equation should be revised to provide an
incentive for such baghouses to control particulate matter beyond the level required by the
consent order or decree. This is similar to provisions the Illinois EPA developed relative to the
multi-pollutant standard ("MPS") in the mercury rule to provide an incentive for companies to
control beyond the level required by the MPS. This revision will provide
an incentive to reduce
particulate matter emissions to the greatest extent practicable and result in an even greater benefit
to the environment and public health.
10.
In order to expedite the Board's action on the proposed rule, Dynegy hereby
suggests that the Board stay action on Dynegy's Motion to Dismiss. Dynegy and the Agency
have agreed that, if the Board grants this Motion and includes the language in this Joint Motion
to Amend in the Board's First Notice of the Illinois Clean Air Interstate Rule, Dynegy
will
withdraw its Motion to Dismiss.
WHEREFORE, for the reasons set forth above, Dynegy Midwest Generation,
Inc., and
the Illinois Environmental Protection Agency move that the Board amend the Proposed
Rulemaking as set forth in Paragraph
6
herein.
Electronic Filing, Received, Clerk's Office, March 13, 2007
Respectfully submitted,
DYNEGY MIDWEST
GENERATION, INC.
by:
by:
Sheldon A.
Zabel
Kathleen C. Bassi
Stephen
J. Bonebrake
SCHIFF
HARDIN, LLP
6600 Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
3 12-258-5500
Fax: 3 12-258-5600
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
John
J. Kim, Managing Attorney
Rachel L. Doctors, Assistant Counsel
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
Division of Legal Counsel
1021 North Grand Avenue, East
P.O. Box 19276
Springfield, Illinois 62794-9276
21 7-782-5544
Dated: March 13,2007
Electronic Filing, Received, Clerk's Office, March 13, 2007
CERTIFICATE OF SERVICE
I, the undersigned, certify that on this 131h day of March. 2007, I have, on behalf of
Dynegy Midwest Generation, Inc., and the Illinois Environmental Protection Agency, served
electronically the attached
JOINT MOTION TO AMEND PROPOSED RULEMAKING
upon the following persons:
Dorothy Gunn, Clerk
Illinois Pollution Control Board
James
R. Thompson Center
Suite
11-500
100 West Randolph
Chicago, Illinois 60601
and electronically and by first-class mail with postage thereon fully prepaid and affixed to the
persons listed on the
ATTACHED SERVICE LIST.
Sheldon A. Zabel
Kathleen C. Bassi
Stephen J. Bonebrake
SCHIFF
HARDIN, 1,LP
6600 Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
3 12-258-5500
Electronic Filing, Received, Clerk's Office, March 13, 2007
SERVICE LIST
(R06-26)
John Knittle
Hearing Office
Illinois Pollution Control Board
James R. Thompson Center
100 W. Randolph
Suite 11-500
Chicago, Illinois 60601
knittlej@,iucb.state.il.us
.
Matthew J. Dunn, Division Chief
Office of the Illinois Attorney General
Environmental Bureau
188 West Randolph,
20" Floor
Chicago, Illinois 60601
mdunn@.atrr.state.il.us
David IZieser
James T. Hanington
Jeremy R. I-Iojnicki
McGuireWoods LLP
77 West Wacker, Suite 4100
Chicago, Illinois 60601
drieser@,rncguirewoods.com
Katherine D. Hodge
N.
LaDonna Driver
HODGE DWYER ZEMAN
3150 Roland Avenue, P.O. Box 5776
Springfield, Illinois 62705-5776
khodge@,hdzlaw.com
-
nldriver@,hdzlaw.conl
Faith E. Bugel
Environmental Law and Policy Center
35 East Wacker Drive, Suite 1300
Chicago, Illinois 60601
fbugel@,elpc.org
Rachel Doctors, Assistant Counsel
John J.
Kim, Managing Attorney
Air Regulatory Unit
Division of Legal Counsel
Illinois Environmental Protection Agency
1021 North Grand Avenue, East
P.O. Box 19276
Springfield, Illinois 62794-9276
rachel.doctors(~illinois.aov
john.~.kim~il~inois.e.ov
Virginia Yang, Deputy Legal Counsel
Illinois Department of Natural Resources
One Natural Resources Way
Springfield, Illinois 62701
-1 271
virginia.yang@,ilLinois.gov
William A. Murray
City of Springfield, Office of Public Utilities
800 East Monroe,
4th Floor, Municipal
Building
Springfield, Illinois 62757-0001
bmurrav@,cwlp.com
S. David Farris
Manager, Environmental; Health and Safety
City Water Light
&
Power
201 East Lake Shore Drive
Springfield, Illinois 62757
dfarris@,cwlu.com
Keith I. Harley
Chicago Legal Clinic,
Inc.
205 West Monroe Street, 4" Floor
Chicago, Illinois 60606
kharley@kentlaw.edu
Electronic Filing, Received, Clerk's Office, March 13, 2007
SERVICE LIST
(R06-26)
Sasha M. Reyes
Steven J. Murawski
Baker
&
McKenzie
One Prudential Plaza, Suite 3500
130 East Randolph Drive
Chicago,
fL 60601
sasha.m.reves~B,bakernet.com
stevet1.i .mu~raw~ski@bakernet.com
General Counsel
MIDWEST GENERATION, LLC
440 South
LaSalle Street, Suite 3500
Chicago, Illinois 60605
1
dmcdevitt@mw 7en.com
Bill S. Forcade
Katherine M.
Rahill
JENNER
&
BLOCK LLP
One IBM Plaza
Chicago, Illinois 6061
1
bforcade@,ienner.com
krahill@,ienner.com
Bruce
Nilles
Sierra Club
122 West Washington Avenue, Suite 830
Madison, Wisconsin 53703
bruce.nillcs@sierraciub.org
James H. Russell
Winston
&
Strawn LLP
35 W. Wacker Drive,
4oth Floor
Chicago, Illinois 60601
jrussell@,winston.com
Karl
A. Karg
Cary
R. Perlrnan
Andrea M. Hogan
Latharn
&
Watkins LLP
5800 Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
karl.care@,lw.com
vary .perlman@lw.com
andrca.hocan@,lw.com
Electronic Filing, Received, Clerk's Office, March 13, 2007