ILLINOIS POLLUTION CONTROL BOARD
May 17, 2007
EQUISTAR CHEMICALS, LP (Property
Identification Number 03-20-200-014),
Petitioner,
v.
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY,
Respondent.
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PCB 07-93
(Tax Certification - Water)
ORDER OF THE BOARD (by G.T. Girard):
On March 21, 2007, the Illinois Environmental Protection Agency (Agency)
recommended that the Board certify certain facilities of Equistar Chemicals, LP (Equistar) as
“pollution control facilities” for preferential tax treatment under the Property Tax Code (35 ILCS
200/11-5
et seq.
(2004)). The facilities are a wastewater treatment plant effluent temperature
control and the Lift Station #23 Overflow Prevention at Equistar’s water pollution control
facility. Equistar’s facility is located at Section 21, Township 34 North, Range 8 East of the 3rd
Principal Meridian in Grundy. But, in the same filing, the Agency recommended denial of tax
certification to Potable Water System Improvements. 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 Equistar’s facilities are pollution control facilities.
The Board grants certification to the wastewater treatment plant effluent temperature control and
the Lift Station #23 Overflow Prevention facilities. Further, as the time for Equistar to file an
appeal of the Agency’s recommended denial has passed, the Board declines to certify the Potable
Water System Improvements.
LEGAL FRAMEWORK
Under the Property Tax Code, “[i]t is the policy of this State that pollution control
facilities should be valued, at 33 1/3% of the fair cash value of their economic productivity to
their owners.” 35 ILCS 200/11-5 (2004);
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 (2004);
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
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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).
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 (2004);
see also
35 Ill.
Adm. Code 125.216(a).
AGENCY RECOMMENDATION
The Agency states that it received a tax certification application from Equistar for its
facilities on April 30, 2003. Agency Rec. at 1. On March 21, 2007, the Agency filed a
recommendation on the application with the Board. The Agency’s recommendation identifies
the facilities at issue:
Wastewater treatment plant effluent temperature control and the Lift Station #23
Overflow Prevention.
Id.
at 2
Potable Water System Improvements.
Id.
The Agency makes separate recommendations relating to the two separate sets of
facilities:
Wastewater treatment plant effluent temperature control and the Lift Station #23
Overflow Prevention:
The Agency recommends 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 (2004)) because the primary purpose of the facilities is eliminating, preventing,
or reducing water pollution. Agency Rec. at 3.
Potable Water System Improvements:
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 (2004)). Agency Rec. at 3. Equistar 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 April 25, 2007. The Board has not received a petition for review and therefore
declines to certify the potable water system improvements as a pollution control facilities as
defined in Section 11-10 of the Property Tax Code (35 ILCS 200/11-10 (2004)).
TAX CERTIFICATE
Wastewater treatment plant effluent temperature control and the Lift Station #23
Overflow Prevention
The Board finds and certifies that Equistar’s facilities identified in this order are pollution
control facilities under the Property Tax Code (35 ILCS 200/11-10 (2004)). Under Section 11-
25 of the Property Tax Code, the effective date of this certificate is “the date of application for
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the certificate or the date of the construction of the facility, which ever is later.” 35 ILCS
200/11-25 (2004);
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 (2004)). The Clerk therefore will provide
Equistar and the Agency with a copy of this order.
IT IS SO ORDERED.
Section 41(a) of the Environmental Protection Act provides that final Board orders may
be appealed directly to the Illinois Appellate Court within 35 days after the Board serves the
order. 415 ILCS 5/41(a) (2004);
see also
35 Ill. Adm. Code 101.300(d)(2), 101.906, 102.706.
Illinois Supreme Court Rule 335 establishes filing requirements that apply when the Illinois
Appellate Court, by statute, directly reviews administrative orders. 172 Ill. 2d R. 335. The
Board’s procedural rules provide that motions for the Board to reconsider or modify its final
orders may be filed with the Board within 35 days after the order is received. 35 Ill. Adm. Code
101.520;
see also
35 Ill. Adm. Code 101.902, 102.700, 102.702.
I, John T. Therriault, Assistant Clerk of the Illinois Pollution Control Board, certify that
the Board adopted the above order on May 17, 2007, by a vote of 4-0.
___________________________________
John T. Therriault, Assistant Clerk
Illinois Pollution Control Board
