CERTIFICATE OF SERVICE
SERVICE LIST

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF:

)

PETITION OF MIDWEST GENERATION, LLC,

)

WAUKEGAN GENERATING STATION

)

FOR AN ADJUSTED STANDARD FROM

)

ILL.ADM.CODE 225.230.

)

NOTICE OF FILING

To:

AS 07-03

(Adjusted Standard - Air)

John T. Therriault, Assistant 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 we have today electronically filed with the Office of the

Clerk

of the Pollution Control Board MOTION TO FILE INSTANTER and STATUS

REPORT, copies of which are herewith electronically served upon you.

-~.

Kathleen C. Bassi

Dated: October 25, 2007

Sheldon

A. Zabel

Kathleen

C. Bassi

Stephen

1. Bonebrake

SCHIFF HARDIN, LLP

6600 Sears Tower

233 South Wacker Drive

Chicago, Illinois 60606

312-258-5500

Electronic Filing; Received, Clerk's Office, October 25, 2007

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF:

)

PETITION OF MIDWEST GENERATION, LLC,

)

WAUKEGAN GENERATING STATION

)

FOR AN ADJUSTED STANDARD FROM

)

35 ILL.ADM.CODE 225.230.

)

AS 07-03

(Adjusted Standard - Air)

MOTION TO FILE INSTANTER

NOW COMES Petitioner, MIDWEST GENERATION, LLC, WAUKEGAN

GENERATING STATION, by and through its attorneys, SCHIFF HARDIN LLP, and moves the

Board to grant its request to file the attached Status Report instanter. The Board had ordered on

March 15,2007, that Petitioner file a written status report 30 days after the Board takes action in

the rulemaking docketed at R06-26,

Proposed New Clean Air Interstate Rule (CAIR) S02, NOx

Annual and NOx Ozone Season Trading Programs,

Ill.Adm.Code

225,

Subparts A,

D and

The Board entered its final order in that rulemaking on August 23, 2007, and so the Status

Report was due on September 24, 2007. Petitioner inadvertently failed to file the Status Report

but offers it at this time. Petitioner asserts that no harm to the environment has occurred as a

result

of its not having filed the Status Report timely. Further, until the U.S. Environmental

Protection Agency indicated in its Direct Final Approval

of the Illinois CAIR its disposition of

Subpart F of the proposal on October 16, 2007, the status of this matter was in limbo.

-1-

Electronic Filing; Received, Clerk's Office, October 25, 2007

WHEREFORE. Petitioner requests that the Board accept the attached Status Report in

this matter at this time.

Respectfully submitted,

MIDWEST GENERATION, LLC,

WAUKEGAN GENERATING STATION

by:

Dated: October 25, 2007

Sheldon A. Zabel

Kathleen C. Bassi

Stephen

1. Bonebrake

SCHIFF HARDIN, LLP

6600 Sears Tower

233 South Wacker Drive

Chicago, Illinois 60606

312-258-5500

Fax: 312-258-5600

kbassi@schiffhardin.com

CH2\ 2145055.1

-2-

Electronic Filing; Received, Clerk's Office, October 25, 2007

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF:

)

PETITION OF MIDWEST GENERATION, LLC,

)

WAUKEGAN GENERATING STATION

)

FOR AN ADJUSTED STANDARD FROM

)

ILL.ADM.CODE 225.230.

)

STATUS

REPORT

AS 07-03

(Adjusted Standard - Air)

NOW COMES Petitioner, MIDWEST GENERATION, LLC, WAUKEGAN

GENERATING STATION, by and through its attorneys, SCHIFF HARDIN LLP, and submits

this Status Report in this matter.

On January 10, 2007, Petitioner timely filed a Petition for Adjusted Standard requesting

relief from the requirements

of the mercury rule adopted by the Board on December 21, 2006, in

Docket R06-25:

In the Matter of' Proposed New

Ill.Adm.Code

225

Control ofEmissions

from Large Combustion Sources (Mercury)

("the mercury rule"). The Board accepted the matter

for hearing on February 15,2007.

On March 15, 2007, the Board granted Petitioner'srequest for a Stay

of the Proceedings

and ordered Petitioner to file a Status Report in this matter 30 days following the Board'sfinal

action on the rulemaking docketed at R06-26:

Proposed New Clean Air Interstate Rule (CAIR)

S02, NOx Annual

and NOx Ozone Season Trading Programs,

Ill.Adm. Code

225,

Subparts A,

D and E.

That rule was finalized on August 23, 2007.

Subsequently, the Illinois Environmental Protection Agency ("Agency") submitted the

final rule to the U.S. Environmental Protection Agency ("USEPA") for approval as part

Illinois' State Implementation Plan ("SIP").

-1-

Electronic Filing; Received, Clerk's Office, October 25, 2007

On October 16,2007, USEPA proposed, in a Direct Final Rule, to approve Illinois' CAIR

as part

of its SIP. 72 Fed.Reg. 58528 (October 16, 2007), attached hereto for the Board's

convenience. However, in that approval

of the CAIR, USEPA specifically deferred action on

Subpart F, the Combined Pollutant Standard ("CPS"), which directly affects Petitioner. Rather,

USEPA stated that it plans to consider the CPS

as part of its consideration of the mercury rule

(R06-25). 72 Fed.Reg. 58533.

As discussed in Petitioner'sMotion to Stay Proceedings, filed in this matter on March

2007, the CPS addresses Petitioner's concerns regarding the hot-side precipitators at the

Waukegan Generation Station, which are the subject

of this matter. The Board adopted the CPS

in substantially as it was proposed. However, until USEPA has approved the CPS as part

of the

SIP or as part

of the Clean Air Act Section 111 Plan addressed in the mercury rule, Petitioner

remains exposed to potential federal enforcement for failure to comply with the mercury

reduction limitations that are part

of Illinois' regulations that may be approved by USEPA.

Therefore, Petitioner requests that the Board continue this matter until USEPA has taken final

action on the CPS.

-2-

Electronic Filing; Received, Clerk's Office, October 25, 2007

WHEREFORE. for the reasons set forth above, Petitioner, MIDWEST GENERATION,

LLC, WAUKEGAN GENERATING STATION, requests that the Board continue the Stay

Proceedings granted in its March 15, 2007, Order until such time as USEPA has taken final

action on its consideration

of the Illinois mercury submittal and the CPS specifically.

Respectfully submitted,

MIDWEST GENERATION, LLC,

WAUKEGAN GENERATING STATION

by:

One of Its Attorneys

Dated: October 25, 2007

Sheldon A. Zabel

Kathleen C. Bassi

Stephen

J. Bonebrake

SCHIFF HARDIN, LLP

6600 Sears Tower

233 South Wacker Drive

Chicago, Illinois 60606

312-258-5500

Fax: 312-258-5600

kbassi@schiffhardin.com

CH2\ 2145054.1

-3-

Electronic Filing; Received, Clerk's Office, October 25, 2007

58528

Federal Register/Vol. 72, No. 199/Tuesday, October 16, 2007/Rules and Regulations

(S8) On July 14, 1982, the State

submitted revisions to its State

Implementation

Plan for TSP and S02

for Toledo Edison Company'sBay Shore

Station

in Lucas County, Ohio, except

that the equivalent visible emission

limitations

in this submittal are no

longer

in effect.

(134)

On July 18, 2000, the Ohio

Environmental Protection Agency

submitted revised rules for particulate

matter. Ohio adopted these revisions to

address State-level appeals

by various

industry groups of rules that the State

adopted in 1995 that EPA approved in

1996. The revisions provide

reformulated limitations

on fugitive

emissions from storage piles

and plant

roadways, selected revisions to emission

limits

in the Cleveland area, provisions

for Ohio to follow specified criteria to

issue replicable equivalent visible

emission limits,

the correction of limits

for stationary combustion engines,

and

requirements for continuous emissions

monitoring as mandated

by 40 CFR part

51,

Appendix P. The State's submittal

also

included modeling to demonstrate

that the revised Cleveland area emission

limits continue to provide for

attainment

ofthe PM

standards. EPA

is disapproving two paragraphs that

would allow revision of limits

applicable to Ford Motor Company's

Cleveland Casting Plant through permit

revisions without

the full EPA review

provided

in the Clean Air Act.

(i) Incorporation by reference.

(A) The following rules in Ohio

Administrative Code Chapter 3745-17

as effective January 31, 1998: Rule OAC

3745-17-01, entitled Definitions, Rule

OAC 3745-17-03, entitled Measurement

methods

and procedures, Rule OAC

3745-17-04, entitled Compliance time

schedules,.Rule OAC 3745-17-07,

entitled Control of visible particulate

emissions from stationary sources, Rule

OAC 3745-17-08, entitled Restriction of

emission of fugitive dust, Rule OAC

3745-17-11, entitled Restrictions on

particulate emissions from industrial

processes, Rule OAC 3745-17-13,

entitled Additional restrictions on

particulate emissions from specific air

contaminant sources

in Jefferson

county,

and OAC 3745-17-14, entitled

Contingency plan requirements for

Cuyahoga and Jefferson counties.

(B) Rule OAC 3745-17-12, entitled

Additional restrictions

on particulate

emissions from specific air contaminant

sources

in Cuyahoga county, as effective

on January 31, 1998, except

f~r

paragraphs (1)(50) and (1)(51)..

by Ohio EPA, Division of Air Pollution

Control,

on June 20,1997.

(D) Engineering Guide #lS, as revised

by Ohio EPA, Division of Air Pollution

Control,

on June 20,1997.

(ii) Additional material.

(A) Letter from Robert Hodanbosi,

Chief of Ohio EPA's Division of Air

Pollution Control, to EPA, dated

February 12, 2003.

(B) Telefax from Tom Kalman, Ohio

EPA, to EPA,

dated January 7, 2004,

providing supplemental documentation

of emissions estimates for Ford's

Cleveland Casting Plant.

Ohio EPA to EPA, dated February 1,

2005,.providing further supplemental

documentation

of emission estimates.

(D) E-mail from Bill Spires, Ohio EPA

to EPA,

dated April 21, 2005, providing

further modeling analyses.

[FR Doc. E7-20253 Filed 10-15-07; 8:45 am]

BILLING CODE 656()-5(H1

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[EPA-R05-0AR-2007-o376; FRL-84n-4]

Approval of Implementation Plans of

Illinois: Clean Air Interstate Rule

AGENCY:

Environmental Protection

Agency (EPA).

ACTION:

Direct final rule.

SUMMARY:

EPA is approving a revision to

the Illinois State Implementation Plan

(SIP) submitted on September 14, 2007.

This revision addresses

the

requirements of EPA's Clean Air

Interstate Rule (CAIR), promulgated on

May 12, 200S, and subsequently revised

on April 28, 2006, and December 13,

2006. EPA is determining that

the SIP

revision fully meets the CAIR

requirements for Illinois. Therefore, as a

consequence of

the SIP approval, EPA

will also

withdraw the CAIR Federal

Implementation Plans

(CAIR FIPs)

concerning

sulfur dioxide (S02),

nitrogen oxides (NO

annual,

and NOx

ozone season emissions for Illinois.

The

CAIR FIPs for all States in the CAIR

region were promulgated

on April 28,

2006

and subsequently revised on

December 13,2006.

CAIR requites States to reduce

emissions of

S02 and NOx that

significantly contribute to, and interfere

with maintenance of, the national

ambient air quality standards (NAAQS)

for fine particulates

(PM

.s) and!or

ozone

in any downwind state. CAIR

establishes State budgets for

S02 and

NOx and requires States to submit SIP

revisions

that implement these budgets

in States that EPA

concluded did

contribute to nonattainment in

downwind states. States have the

flexibility to choose which control

measures to

adopt to achieve the

budgets, including participating in the

EPA-administered cap-and-trade

programs. In the SIP revision

that EPA

is approving, Illinois meets CAIR

requirements by participating

in the

EPA-administered cap-and-trade

programs addressing S02, NOx annual,

and NOx ozone season emissions.

DATES:

This direct final rule will be

effective December

17,2007, unless EPA

receives adverse comments by

November 15, 2007.

adverse

comments are received, EPA

will

publish a timely withdrawal of the

direct final rule in the Federal Register

informing the

public that the rule will

not take effect.

ADDRESSES:

Submit your comments,

identified by Docket

ill

No. EPA-R05-

OAR-2007-o376, by one of the

following methods:

http://www.regulations.gov:

the on-line instructions for submitting

comments.

2. E-mail: mooney.john@epa.gov.

3. Fax:

(312) 886-S824.

4. Mail:

"EPA-ROS-QAR-2007-

0376", John

M. Mooney, Chief, Criteria

Pollutant Section,

Air Programs Branch

(AR-18J), U.S. Environmental

Protection Agency,

77 West Jackson

Boulevard, Chicago, Illinois 60604.

5. Hand Delivery or Courier:

John M.

Mooney, Chief, Criteria Pollutant

Section, Air Programs Branch (AR-18J),

U.S. Environmental Protection Agency,

77 West Jackson Boulevard, Chicago,

Illinois 60604.

Such deliveries are only

accepted during the Regional Office's

normal hours

of operation. The Regional

Office's official

hours of business are

Monday through Friday, 8:30 to 4:30,

excluding federal holidays.

Instructions:

Direct your comments to

Docket

ill

No. EPA-ROS-QAR-2007-

0376. EPA's policy is that all comments

received will be

included in the public

docket without change

and may be

made available online at

http://

www.regulations.gov,

including any

personal information provided, unless

the comment includes information

claimed to be Confidential Business

Information

(CBI) or other information

whose disclosure is restricted by statute.

Do not submit through

http://

www.regulations.gov

ore-mail,

information

that you consider to be CBI

or otherwise protected. The

http://

www.regulations.gov

website is an

Electronic Filing; Received, Clerk's Office, October 25, 2007

Federal Register/Vol. 72, No. 199/Tuesday, October 16, 2007/Rules and Regulations

58529

"anonymous access" system, which

means EPA will not know your identity

or contact information

unless you

provide it in the body of your comment.

you send an e-mail comment directly

to EPA

without going through

http://

www.regulations.gov,

your e-mail

address will be automatically

captured

and included as part of the comment

that is placed

in the public docket and

made available on the Internet.

you

submit

an electronic comment, EPA

recommends that you

include your

name

and other contact information in

the body of your comment and with any

disk or CD-ROM you submit.

EPA

cannot read your comment

due to

technical difficulties

and cannot contact

you for clarification, EPA may not be

able to consider your comment.

Electronic files should avoid

the use of

special characters

and any form of

encryption and should be free of any

defects or viruses. For additional

information about EPA's public docket

visit the EPA Docket Center homepage

http://www.epa.gov/epahome/

dockets.htm.

Docket:

All documents in the

electronic docket are listed

in the

http://

www.regulations.gov

index. Although

listed

in the index, some information is

not publicly available, Le.,

CBI or other

information whose disclosure is

restricted by statute. Certain other

material,

such as copyrighted material,

not placed on the Internet and will be

publicly available only

in hard copy

form. Publicly available docket

materials are available either

electronically

http://

www.regulations.gov

or in hard copy at

the Environmental Protection Agency,

Region

5, Air and Radiation Division, 77

West Jackson Boulevard, Chicago,

Illinois 60604. EPA requests

that if at all

possible, you contact John Summerhays,

Environmental Scientist, at (312)

886-

6067 to schedule your inspection. The

Regional Office's official hours of

business are Monday through Friday,

8:30 to 4:30, excluding federal holidays.

FOR FURTHER INFORMATION CONTACT:

John

Summerhays, Environmental Scientist,

Criteria Pollutant Section, Air Programs

Branch (AR-18n, Environmental

Protection Agency, Region

5, 77 West

Jackson Boulevard, Chicago, Illinois

60604, (312) 886-6067,

summerhays.john@epa.gov.

SUPPLEMENTARY INFORMATION:

Table ofContents

I. What Actions Is EPA Taking?

II. What Is the Regulatory History of CAIR

and

the CAIR FIPs?

III. What are the General Requirements of

CAIR and the CAIR FIPs?

IV. What are the Types of CAIR SIP

Submittals?

v. Description of Illinois'CAIR SIP Submittal

The Background of Illinois' Submittal

B. Summary of Illinois'Rules

VI. Analysis of Illinois'CAIR SIP Submittal

State Budgets for Allowance Allocations

B. CAIR Cap-and-Trade Programs

C. Applicability Provisions for non-EGU

NOx SIP Call Sources

D. NOx Allowance Allocations

E. Allocation of NOx Allowances From

Compliance Supplement Pool

F. Individual Opt-in Units

VII. EPA Actions

VIII. Statutory and Executive Order Reviews

I. What Actions Is EPA Taking?

EPA is approving a revision to

the

Illinois SIP, submitted in final form on

September 14, 2007, reflecting rules

adopted by Illinois on

August 23, 2007.

In its SIP revision, Illinois meets CAIR

requirements by requiring certain

electric generating units

(EGUs) to

participate

in the EPA-administered

State CAIR cap-and-trade programs

addressing

S02,

NOx annual, and NOx

ozone season emissions. EPA

has

determined that the SIP meets the

applicable requirements of CAIR. As a

consequence of

the SIP approval, the

Administrator

of EPA will also issue a

final rule to withdraw

the FIPs

concerning

S02,

NOx annual, and NOx

ozone season emissions for Illinois. That

action will remove

and reserve 40 CFR

52.745

and 52.746. The withdrawal of

the CAIR FIPs for Illinois is a

conforming amendment that

must be

made once the SIP approval is effective

because EPA's authority to issue

the

FIPs was premised on a deficiency in

the SIP for Illinois. Once the SIP

approval becomes effective, EPA

longer has authority for the FIPs. Thus,

EPA

will not have the option of

maintaining the FIPs following the full

SIP approval. Accordingly, EPA does

not intend to offer an opportunity for a

public hearing or an additional

opportunity for written public comment

on the withdrawal of the FIPs.

II.

What is the Regulatory History of

CAIR and the CAIR FIPs?

CAIR was published by EPA

on May

12, 2005 (70 FR 25162).

In this rule,

EPA determined that

28 States and the

District of Columbia contribute

significantly to nonattainment

and

interfere with maintenance of the

NAAQS for PM

.s and/or 8-hour ozone

in downwind States in the eastern part

of the country. As a result, EPA required

those

upwind States to revise their SIPs

include control measures that reduce

emissions of

S02,

which is a precursor

to PM

formation,

and/or NOx, which

is a precursor to both ozone and PM

formation. For jurisdictions

that

contribute significantly to downwind

.5 nonattainment, CAIR sets annual

State-wide emission reduction

requirements (Le., budgets) for

S02

and

annual State-wide emission reduction

requirements for NOx. Similarly, for

jurisdictions

that contribute

significantly to 8-hour ozone

nonattainment, CAIR sets State-wide

emission reduction requirements for

NOx for the ozone season (May 1st to

September 30th).

Under CAIR, States

may

implement these reduction

requirements

by participating in the

EPA-administered cap-and-trade

programs or

by adopting any other

control measures.

CAIR explains to subject States

what

must be included in SIPs to address the

requirements of section 110(a)(2)(D) of

the Clean Air Act (CAA) with regard to

interstate transport

with respect to the

8-hour ozone and PM

NAAQS. EPA

made national findings, effective on

May 25,2005, that the States had failed

submit SIPs meeting the requirements

of section 110(a)(2)(D). The SIPs were

due in July 2000,3 years after the

promulgation of the 8-hour ozone and

.s NAAQS. These findings started a

2-year clock for EPA to promulgate a FIP

to address

the requirements of section

110(a)(2)(D).

Under CAA section

110(c)(1), EPA may issue a FIP anytime

after

such findings are made and must

do so within two years unless a SIP

revision correcting

the deficiency is

approved by EPA before the FIP is

promulgated.

On April 28, 2006, EPA promulgated

FIPs for all States covered by CAIR

order to ensure the emissions reductions

required by CAIR are achieved

schedule. Each CAIR State is subject to

the FIPs until the State fully adopts, and

EPA approves, a SIP revision meeting

the requirements of CAIR. The CAIR

FIPs require EGUs to participate

in the

EPA-administered CAIR

S02,

NOx

annual,

and NOx ozone season trading

programs, as appropriate. The CAIR FIP

S02,

NOx annual, and NOx

ozone

season trading programs impose

essentially

the same requirements as,

and are integrated with, the respective

CAIR SIP trading programs.

The

integration of the FIP and SIP trading

programs means that these trading

programs

will work together to create

effectively a single trading program for

each regulated pollutant

(S02,

NOx

annual,

and NOx ozone season) in all

States covered by

the CAIR FIP or SIP

trading program for

that pollutant. The

CAIR FIPs also allow States to submit

abbreviated SIP revisions that, if

approved by EPA, will automatically

replace or supplement certain CAIR FIP

Electronic Filing; Received, Clerk's Office, October 25, 2007

58530

Federal Register/Vol. 72, No. 199/Tuesday, October 16, 2007/Rules and Regulations

provisions (e.g., the methodology for

allocating NOx allowances to sources in

the State), while the CAIR FIP remains

in place for all other provisions.

On April 28, 2006, EPA published

two additional CAIR-related final rules

that added the States of Delaware and

New Jersey to the list of States subject

to CAIR for

and announced EPA's

final decisions on reconsideration of

five issues, without making any

substantive changes to the CAIR

requirements.

fil. What are the General Requirements

ofCAIR and the CAIR FIPs?

CAIR establishes State-wide emission

budgets for S02 and NOx and is to be

implemented in two phases. The first

phase of NOx reductions starts in 2009

and continues through 2014, while the

first phase of S02 reductions starts in

2010 and continues through 2014. The

second phase of reductions for both

NOx and

S02

starts in 2015 and

continues thereafter. CAIR requires

States to implement the budgets by

either: (1) Requiring EGUs to participate

in the EPA-administered cap-and-trade

programs; or (2) adopting other control

measures of the State's choosing and

demonstrating that such control

measures will result in compliance with

the applicable State S02 and NOx

budgets.

The May 12,2005, and April 28, 2006,

CAIR rules provide model rules that

States must adopt (with certain limited

changes, if desired) if they want to

participate in the EPA-administered

trading programs.

With two exceptions, only States that

choose to meet the requirements of

CAIR through methods that exclusively

regulate EGUs are allowed to participate

in the EPA-administered trading

programs. One exception is for States

that adopt the opt-in provisions of the

model rules to allow non-EGUs

individually to opt into the EPA-

administered trading programs. The

other exception is for States that include

all non-EGUsfrom their NOx SIP Call

trading programs in their CAIR NOx

ozone season trading programs.

IV. What

Are

the Types of CAIR SIP

Submittals?

States have the flexibility to choose

the type of control measures they will

use to meet the requirements of CAIR.

EPA anticipates that most States will

choose to meet the CAIR requirements

by selecting an option that requires

EGUs to participate in the EPA-

administered CAIR cap-and-trade

programs. For such States, EPA has

provided two approaches for

~ubmitting

and obtaining approval for CAIR SIP

revisions. States may submit full SIP

revisions that adopt the model CAIR

cap-and-trade rules.

approved, these

SIP revisions will fully replace the CAIR

FIPs. Alternatively, States may submit

abbreviated SIP revisions. These SIP

revisions will not replace the CAIR FIPs;

however, the CAIR FIPs provide that,

when approved, the provisions in these

abbreviated SIP revisions will be used

instead of or in conjunction with, as

appropriate, the corresponding

provisions of the CAIR FIPs (e.g., the

NOx allowance allocation

methodology).

A State submitting a full SIP revision

may either adopt regulations that are

substantively identical to the model

rules or incorporate by reference the

model rules. CAIR provides that States

may only make limited changes to the

model rules

the States want to

participate in the EPA-administered

trading programs. A full SIP revision

may change the model rules only by

altering their applicability and

allowance allocation provisions to:

1. Include NOx SIP Call trading

sources that are not EGUs under CAIR

in the CAIR NOx ozone season trading

program;

2. Provide for State allocation of NOx

annual or ozone season allowances

using a methodology chosen by the

State;

3. Provide for State allocation of NOx

annual allowances from the compliance

supplement pool (CSP) using the State's

choice of allowed, alternative

methodologies; or

4. Allow units that are not otherwise

CAIR units to opt individually into the

CAIR S02, NOx annual, orNO

ozone

season trading programs under the opt-

in provisions in the model rules.

An approved CAIR full SIP revision

addressing EGUs'S02, NOx annual, or

NOx ozone season emissions will

replace the CAIR FIP for that State for

the respective EGU emissions.

V. Description of Dlinois' CAIR SIP

Submittal

A. The Background ofIllinois' Submittal

On March 29, 2007, Illinois submitted

draft rules and voluminous supporting

material for addressing CAIR

requirements. These rules had been

proposed by the Illinois Environmental

Protection Agency (Illinois EPA) to the

Illinois Pollution Control Board (IPCB)

on May 30, 2006. (!PCB is the board

responsible for adopting environmental

regulations in Illinois.) The IPCB held

hearings on these proposed rules on

October 10 through October 12,2006,

and again on November 28 and

November 29,2006. Following these

hearings and following discussions with

interested parties, the Illinois EPA

recommended a revised set of rules to

the !PCB on January 5,2007. These rules

constitute the regulatory portion of the

submittal by Illinois on March 29,2007.

In addition to the rules, Illinois' March

2007 submittal included voluminous

supporting material used in the state

rulemaking process to support the rules.

This material included such documents

as transcripts of hearings and

Alternative Control Techniques

documents describing NOx control

options. !PCB then solicited further

comment on refined versions of the

rules. On June 29, 2007, Illinois EPA

submitted comments on the "first

notice" rules to EPA, including

recommended rule lang!J.age.

!PCB adopted final rules on August

23,2007, effective August 31,2007.

!PCB makes the full set of relevant

documents, including the final rules,

available on its Web site, either by

accessing

http://www.ipcb.state.il.us/

and selecting docket R2006-o26 or by

directly accessing

http://www.ipcb.state.

il.

us/cool/external/

CaseView2.asp?referer=

coolsearch&case=R2006-026.

Illinois EPA submitted the final rules

by a submittal postmarked September

14, 2007. Although the submittal letter

was undated, EPA considers this

package to have been submitted on the

postmark date, i.e., September 14, 2007.

This submittal also included interim

draft rules and other materials

developed during the IPCB rulemaking

process after March 2007. The focus of

EPA'srulemaking is on whether the

final rules that Illinois adopted would

satisfy EPA'srequirements under CAIR.

B. Summary ofIllinois'Rules

Part 225 of Title 35 of the Illinois

Administrative Code, entitled "Control

Of Emissions From Large Combustion

Sources," includes numerous provisions

addressing utility emissions of S02,

NOx, and mercury. These rules are

designed to address the requirements of

both the CAIR and the Clean Air

Mercury Rule (CAMR). Today's action

addresses the CAIR portions of the Part

225 rules.

Part 225 includes six subparts:

Subpart A, entitled "General

Provisions," Subpart B, entitled

"Control Of Mercury Emissions From

Coal-Fired Electric Generating Units,"

Subpart C, entitled "CAIR S02 Trading

Program," Subpart D, entitled "CAIR

NOx Annual Trading Program," Subpart

E, entitled "CAIR NOx Ozone Season

Trading Program, and Subpart F,

entitled "Combined Pollutant

Standards." The CAIR provisions are

Electronic Filing; Received, Clerk's Office, October 25, 2007

Federal Register/Vol. 72, No. 199/Tuesday, October 16, 2007/Rules and Regulations

58531

addressed in subparts A, C, D, and

Subpart B, which addresses mercury,

was not

included in Illinois'submittal

and was submitted separately. Subpart F

was

included in Illinois' September

2007 submittal

but may be considered a

part of Illinois' mercury plan; EPA will

address Subpart F as

part of EPA's

separate rulemaking addressing Illinois'

mercury rules.

Subpart A contains general

provisions, most notably including

definitions

and incorporation by

reference. The definitions reflect the

definitions given in the CAm model

rules

and are included for terms that are

used in Illinois' rules. (Although some

definitions are pertinent to the

regulation

of mercury, today's action

only addresses the adequacy of these

definitions for

CAIR purposes. Separate

rulemaking will address

the adequacy of

these definitions for mercury regulation

purposes.) The incorporation by

reference incorporates almost the

entirety

of the CAIR model rules. With

respect to the S02 program

in 40 CFR

part 96, Illinois' rules incorporate

subpart AAA

(CAIR S02 Trading

Program General Provisions); 40 CFR

part 96, subpart BBB (CAIR Designated

Representative for CAIR S02 Sources);

40 CFR

part 96, subpart FFF (CAIR S02

Allowance Tracking System); 40 CFR

part 96, subpart

GGG (CAIR S02

Allowance Transfers); and 40 CFR part

96, subpart HHH (Monitoring

and

Reporting), with two exceptions. Illinois

does

not incorporate 40 CFR 96.204

(entitled "Applicability"),

and 96.206

(entitled "Standard requirements"). For

these two sections, Illinois instead has

adopted language that is effectively

identical to the language

in EPA's model

rule. Illinois also has adopted language

addressing permitting requirements

instead of incorporating subpart

CCC by

reference,

and Illinois does not provide

for opt-ins

and therefore neither

incorporates subpart III by reference nor

adopts any similar state language.

Illinois' incorporation by reference for

the ozone season NOx

program

and for

the annual NOx program closely

parallels the incorporation by reference

for the

S02 program. EPA's model rules

for NOx, unlike the model rules for S02,

have allowance allocation provisions (in

CFR part 96, subparts E and EE,

respectively, and in related provisions

in 40 CFR 96.105(b)(2) and

96.305(b)(2)). However, Illinois did not

incorporate these allocation provisions

by reference

and instead adopted its

own provisions.

Subpart C of Illinois' rule addresses

the S02 requirements

of CAIR. This

subpart includes six sections"entitled,

"Purpose," "Applicability,"

"Compliance Requirements," "Appeal

Procedures," "Permit Requirements,"

and "Trading Program" respectively.

The purpose is to regulate

S02

emissions in accordance with EPA's

CAIR requirements. The requirements

apply

in general to boilers and

combustion turbines that serve

generators

with capacity to produce

greater

than 25 megawatts, with an

exemption for some cogeneration units

and solid waste incineration units.

Units subject to these rules

must comply

with allowance holding requirements

and emissions monitoring requirements

incorporated

by reference from 40 CFR

part 96. Procedures for appealing EPA

decisions

in the S02 trading program are

the procedures given

in 40 CFR part 78.

Owners or operators of units subject to

the program

must apply for a permit

that will specify the requirements under

the program that will apply to the

source. Allowance allocations are the

allocations determined in the Acid Rain

Program

under title IV of the CAA. After

the

end of each year starting with 2010,

allowances

held by a source are

deducted to cover the source's

emissions, according to retirement ratios

that EPA has mandated.

Subpart D

of Illinois'rules addresses

the NOx

annual trading program of the

CAIR. The sections described above in

Subpart C (Illinois'

S02 program rules)

are also present

in Subpart D, using

nearly identical language.

addition,

Subpart D includes extensive sections

addressing allowance allocations.

Unlike

the S02 program, which relies on

allowances issued under the Acid Rain

Program,

the annual NOx program relies

on newly issued allowances. EPA gives

states substantial flexibility

in the

allocation of NOx allowances so long as

the total number of allowances allocated

within the state'sbudget that EPA has

established

and so long as certain timing

requirements concerning the

determination

and submission to the

Administrator of allocations are met.

Section VI.D

below describes Illinois'

NOx allowance allocation systems

more detail.

Subpart E

of Illinois'rules address the

NOx ozone season trading program.

These rules are again quite similar to the

rules

in Subparts C and D (for the S02

and the annual NOx trading programs,

respectively), including rules providing

for allowance allocations that are quite

similar to the provisions

in Subpart D.

Again, this allocation system is

described

in more detail in section VI.D

below.

The CAIR NOx ozone season program

is designed to replace

the program

known as

the NOx SIP Call trading

program. Therefore, a state like Illinois

that is subject to

both sets of

requirements must adopt CAIR rules

that suitably replace the state'sNOx SIP

Call trading program rules. Most

notably,

the state must adopt control

measures

that will achieve the amount

of NOx emission reductions that were

projected to

be achieved by sources that

were covered by the NOx SIP Call

trading program

but that are not covered

by the CAIR NOx ozone season trading

program. In addition,

such states must

address several transition issues such as

the status of allowances issued under

the NOx SIP Call that remain in

circulation after the NOx SIP Call ends.

Illinois' CAIR submittal does not fully

address

the replacement of the NOx SIP

Call. Illinois'CAIR NOx ozone season

trading program addresses

the emissions

from EGUs

and do not address

emissions from non-EGUs

that are

covered

by the NOx SIP Call trading

program. Non-EGUs

in Illinois will thus

not be part of the CAIR NOx ozone

season trading program. Illinois is

instead pursuing "reasonably available

control technology (RACT)

rules" that

would subject the non-EGUs to specific

emission limits. Illinois' rules also do

not fully address the issues relating to

transition from

the NOx SIP Call

program to

the CAIR program.

VI. Analysis

oflliinois'CAIR SIP

Submittal

A. State Budgets for Allowance

Allocations

The CAm NOx annual and ozone

season budgets were developed from

historical

heat input data for EGUs.

Using these data, EPA calculated

annual

and ozone season regional heat input

values, which were multiplied by 0.15

Ib/mmBtu, for phase 1,

and 0.1251b/

mmBtu, for phase

2, to obtain regional

NOx budgets for 2009-2014

and for

2015

and thereafter, respectively. EPA

derived

the State NOx annual and ozone

season budgets from the regional

budgets using State

heat input data

adjusted by fuel factors.

The CAIR. State S02 budgets were

derived

by discounting the tonnage of

emissions authorized by annual

allowance allocations

under the Acid

Rain Program.

Under CAIR, each

allowance allocated

in the Acid Rain

Program for

the years in phase 1 of CAIR

(2010 through 2014) authorizes 0.50

ton

of S02 emissions in the CAIR trading

program,

and each Acid Rain Program

allowance allocated for

the years in

phase 2 of CAIR (2015 and thereafter)

authorizes 0.35

ton ofS02 emissions in

the CAIR trading program.

In today'saction, EPA is approving

Illinois' SIP revision

that adopts the

Electronic Filing; Received, Clerk's Office, October 25, 2007

58532

Federal

NOx budgets and conforms with the S02

budgets established for the State in

CAIR. For NOx annual emissions, these

budgets are 76,230 tons for each year

from 2009 to 2014

and 63,525 tons for

each year thereafter. For NOx ozone

season emissions

these budgets are

30,701 for each year from 2009 to 2014

and 28,981 tons for each year thereafter.

For S02, Illinois' rules

provide for

retirement ratios that,

in concert with

the number of allowances that EPA will

issue

under the Acid Rain Program, will

reflect the budgets

of 192,671 tons for

each year from 2010 to 2014

and

134,869 tons for each year thereafter.

B. GAIR Gap-and-Trade Programs

The CAIR NOx annual and ozone-

season model trading rules both largely

mirror the structure

of the NOx SIP Call

model trading rule

in 40 CFR part 96,

subparts A through

While the

provisions

of the NOx annual and

ozone-season model rules are similar,

there are some differences. For example,

the NOx annual model rule (but not the

NOx

ozone season model rule) provides

for a CSP,

which is discussed below and

under which allowances may be

awarded for early reductions of NOx

annual emissions. As a further example,

the NOx ozone season model rule

reflects the fact

that the CAIR NO

ozone season trading program replaces

the NOx SIP Call trading program after

the 2008 ozone season and is

coordinated

with the NOx SIP Call

program. The

NOx

ozone season model

rule provides incentives for early

emissions reductions by allowing

banked, pre-2009 NOx SIP Call

allowances to be

used for compliance in

the CAIR NOx ozone-season trading

program. In addition, States have the

option of continuing to meet their NOx

SIP Call requirement by participating

the CAIR NOx ozone season trading

program and including all their

NOx

SIP

Call trading sources

in that program.

The provisions of the CAIR S02

model rule are also similar to the

provisions

of the NOx annual and ozone

season model rules. However, the

S02

model rule is coordinated with the

ongoing Acid Rain S02 cap-and-trade

program

under CM title IV. The S02

model rule uses the title IV allowances

for compliance,

with each allowance

allocated for 2010-2014 authorizing

only 0.50 ton of emissions

and each

allowance allocated for 2015 and

thereafter authorizing only 0.35 ton

emissions. Banked title IV allowances

allocated for years before 2010 can be

used

at any time in the CAIR S02 cap-

and-trade program, with each such

allowance authorizing 1 ton of

emissions. Title

IV allowances are to be

freely transferable among sources

covered by the Acid Rain Program

and

sources covered by the CAIR S02 cap-

and-trade program.

EPA also used the

CAIR model

trading rules as the basis for

the trading

programs

in the CAIR FIPs. The CAIR

FIP trading rules are virtually identical

to the CAIR model trading rules,

with

changes made to account for federal

rather

than state implementation. The

CAIR model S02, NOx annual,

and NOx

ozone season trading rules

and the

respective CAIR FIP trading rules are

designed to work together as integrated

S02, NOx annual,

and NOx

ozone

season trading programs.

In the SIP revision, Illinois chose to

implement its

CAIR budgets by

requiring

EGUs to participate in EPA-

administered cap-and-trade programs

for S02, NOx annual,

and NOx

ozone

season emissions. Illinois has

adopted a

full SIP revision that adopts,

with

certain allowed changes discussed

below,

the CAIR model cap-and-trade

rules for S02, NOx annual,

and NOx

ozone season emissions.

Applicability Provisions for non-EGU

NOx SIP Gall Sources

In general, the CAIR model trading

rules

apply to any stationary, fossil-fuel-

fired boiler or stationary, fossil-fuel-

fired combustion turbine serving

at any

time, since'thelater of November 15,

1990, or

the start-up of the unit's

combustion chamber, a generator with

nameplate capacity of more than 25

MWe producing electricity for sale.

States have ilie option of bringing in,

for the CAIR NOx ozone season program

only, those units

in the State's NOx SIP

Call trading program that are

not EGUs

as defined

under CAIR. However,

Illinois

has chosen not to expand the

applicability provisions of the CAIR

NOx ozone season trading program to

include all non-EGUs

in the State'sNOx

SIP Call trading program.

D. NOx Allowance Allocations

Under

the NOx allowance allocation

methodology

in the CAIR model trading

rules

and in the CAIR PIP, NOx annual

and ozone season allowances are

allocated to

units that have operated for

five years, based

on heat input data from

a three-year period that are adjusted for

fuel type by using fuel factors

of 1.0 for

coal, 0.6 for oil,

and 0.4 for other fuels.

The CAIR model trading rules and the

CAIR FIP also provide a new unit set-

aside from

which units without five

years of operation are allocated

allowances based

on the units' prior

year emissions.

States may establish

in their SIP

submissions a different NOx allowance

allocation methodology

that will be

used to allocate allowances to sources in

the States if certain requirements are

met concerning

the timing of

submission of units' allocations to the

Administrator for recordation and the

total amount of allowances allocated for

each control period. In adopting

alternative NOx allowance allocation

methodologies, States have flexibility

with regard to:

The cost to recipients of the

allowances,

which may be distributed

for free

or auctioned;

2. The frequency of allocations;

3. The basIs for allocating allowances,

which may be distributed, for example,

based

on historical heat input or electric

and thermal output; and

4. The use of allowance set-asides

and,

if used, their size.

Illinois

applied this flexibility to

adopt systems for allocating allowances

for

the CAIR NOx annual trading

program

and for the CAIR NOx ozone

season trading program

that differ in

several respects from the allocation

systems

in EPA's model rule. For both

trading programs, Illinois sets aside 5

percent

of the allowances for new

sources and 25 percent for a "clean air

set aside."

Under the clean air set aside,

Illinois distributes allowances to three

types

of projects: (1) Projects that use

renewable energy or that improve

energy efficiency,

(2) clean coal

technology projects, including clean

coal burning

equipment (mainly

integrated gasification combined cycle

units),

and (3) upgrades to pollution

control equipment. While EPA expects

Illinois' utilities to install several

emission control systems even

without

this provision, this provision provides

further incentive for Illinois utilities to

install controls. Illinois also dedicates

some

of the set aside allowances for

distribution for projects

that are done

relatively early. The rules require

project sponsors to

apply for allowances

from

this set aside, and the rules

identify

the criteria by which Illinois is

to determine

the number of allowances

be issued for a given project. The

rules specify an initial subdivision of

the clean air set aside according to

project type,

but the rules also provide

for redistributing allocations among

subdivisions

if Illinois receives more or

fewer requests for particular types

projects. The rules also specify how the

new source set aside is to be allocated.

Illinois' rules provide that

the

allowances that are not set aside are

allocated according to electrical output,

with the caveat that the utilities are

initially given the option

of determining

output either directly or as a fixed

efficiency factor times heat input.

Electronic Filing; Received, Clerk's Office, October 25, 2007

Federal Register/Vol. 72, No. 199/Tuesday, October 16, 2007/Rules and Regulations

58533

either case, the output value is further

adjusted,

depending on the type of fuel

burned, to reflect

the emission rates

expected from

burning different fuels. In

particular,

the output from coal-fired

units is unadjusted,

the output from oil-

fired units is

multiplied by 0.6, and the

output from units combusting other

fuels is

multiplied by 0.4.

EPA notes that, in sections 225.450(e)

and 225.550(e), Illinois requires that, for

purposes of monitoring output, the

owner or operation

of a CAIR unit must

maintain a monitoring plan meeting

certain requirements of

"40 CFR part 60

or 75, as applicable." Sections 225.450

and 225.550 address "Monitoring,

Recordkeeping,

and Reporting

Requirements for Gross Electrical

Output and Useful Thermal Energy",

and paragraph (e) of each of these

sections specifically mention "gross

electrical

output." Consequently, EPA

interprets sections 225.450(e)

and

225.550(e) as limited to plans for

monitoring

output and as consistent

with,

and in addition to, the monitoring

plan requirements under 40 CFR part

96, subparts HH and HHHH, which

requirements are referenced in sections

225.410(c)(1)

and 225.510(c)(1).

E. Allocation of

NOx

Allowances From

Compliance Supplement Pool

The CAIR establishes a CSP to

provide

an incentive for early

reductions

in NOx annual emissions.

The CSP consists of 200,000 CAIR NOx

annual allowances of vintage 2009 for

the entire CAIR region, and a State's

share of

the CSP is based upon the

projected magnitude of

the emission

reductions required by

CAIR in that

State. States may distribute CSP

allowances,

one allowance for each ton

of early reduction, to sources that make

NOx reductions during 2007 or 2008

beyond

what is required by any

applicable State or Federal emission

limitation. States also may distribute

CSP allowances based

upon a

demonstration of

need for an extension

the 2009 deadline for implementing

emission controls. However, Illinois has

chosen not to distribute

the allowances

ofa CSP.

F. Individual Opt-in Units

The opt-in provisions of the CAIR SIP

model trading rules allow certain non-

EGUs

(Le.. boilers, combustion turbines,

and other stationary fossil-fuel-fired

devices) that do

not meet the

applicability criteria for a

CAIR trading

program to participate voluntarily

(i.e., opt into) the CAIR trading program.

In the model rule. a non-EGU may

opt

into one or more of the CAIR trading

programs. In order to qualify to opt into

CAIR trading program, a unit must

vent all emissions through a stack and

be able to meet monitoring,

recordkeeping,

and recording

requirements of 40 CFR

part 75. The

owners and operators seeking to opt a

unit into a CAIR trading program must

apply for a CAIR opt-in permit.

the

unit is issued a CAIR opt-in permit, the

unit becomes a CAIR unit, is allocated

allowances,

and must meet the same

allowance-holding

and emissions

monitoring

and reporting requirements

as other units subject to the CAIR

trading program.

The opt-in provisions

provide for two methodologies for

allocating allowances for opt-in units,

one methodology

that applies to opt-in

units

in general and a second

methodology that allocates allowances

only to opt-in units

that the owners and

operators

intend to repower before

January

1,2015.

States have several options

concerning the opt-in provisions. States

may adopt

the CAIR opt-in provisions

entirely or may

adopt them but exclude

one of

the methodologies for allocating

allowances. States

may also decline to

adopt

the opt-in provisions at all.

Illinois has chosen

not to allow non-

EGUs to opt into the CAIR NOx annual

trading program,

the CAIR NOx ozone

season trading program, or

the CAIR

S02 trading program.

vn. EPA Actions

EPA is issuing direct final approval of

Illinois' CAIR submittal.

Under this SIP

revision, Illinois is choosing to

participate

in the EPA-administered

cap-and-trade programs for S02, NOx

annual,

and NOx

ozone season

emissions. The SIP revision meets the

applicable requirements

in 40 CFR

51.123(0)

and (aa), with regard to NOx

annual

and NOx ozone season

emissions,

and 40 CFR 51.124(0), with

regard to S02 emissions. EPA is

determining

that the SIP meets the

requirements of CAIR. As a consequence

of the SIP approval,

the Administrator

of EPA will also issue,

without

providing an opportunity for a public

hearing or

an additional opportunity for

written public comment, a final rule to

withdraw the CAIR FIPs concerning

S02, NOx annual,

and NOx ozone

season emissions for Illinois.

That

action will remove and reserve 40 CFR

52.745 and 52.746.

More specifically, EPA is approving

Subparts

A, C, D, and E of Part 225 of

Title

35 of the Illinois Administrative

Code as submitted

on September 14,

2007.

The specific rules being approved

include: In Subpart A, Sections 225.120,

225.130, 225.140,

and 225.150; in

Subpart C, Sections 225.300, 225.305,

225.310,225.315,225.320,

and 225.325;

in Subpart D, Sections 225.400, 225.405,

225.410,225.415,225.420,225.425,

225.430, 225.435, 225.440, 225.445,

225.450, 225.455, 225.460, 225.465,

225.470,225.475,

and 225.480; and in

Subpart E, Sections 225.500, 225.505,

225.510,225.515,225.520.225.525,

225.530, 225.535, 225.540, 225.545,

225.550, 225.555, 225.560. 225.565,

225.570,

and 225.575. Section 225.100

(entitled "Severability") was

not

included in Illinois' September 2007

submittal

but was included in Illinois'

mercury rule submittal; EPA

plans to

address this section as part

of its

rulemaking

on that mercury rule

submittal. EPA is also deferring action

on Subpart F, which EPA also plans to

address

in its rulemaking on Illinois'

rules regarding mercury control.

We are publishing this action

without

prior proposal because we view this as

a noncontroversial

amendment and

anticipate no adverse comments.

However,

in the proposed rules section

of this Federal Register publication, we

are publishing a separate document that

will serve as the proposal to approve the

state plan if relevant adverse written

comments are filed. This rule will be

effective December 17, 2007 without

further notice unless we receive relevant

adverse written comments by November

15.2007.

we receive such comments,

we will withdraw this action before the

effective date by publishing a

subsequent document

that will

withdraw the final action. All public

comments received will then be

addressed in a subsequent final rule

based on the proposed action. The EPA

will not institute a second comment

period. Any parties interested in

commenting on this action should do so

at this time.

we do not receive any

comments, this action will be effective

December 17, 2007.

VllI. Statutory and Executive Order

Reviews

Executive Order

12866:

Regulatory

Planning

and Review

Under Executive Order 12866 (58 FR

51735, October 4,1993), this action is

not a "significant regulatory action" and

therefore is not subject to review by the

Office of Management and Budget.

Executive Order

13211:

Actions That

Significantly Affect Energy Supply,

Distribution,

Use

Because it is not a "significant

regulatory action"

under Executive

Order 12866 or a "significant energy

action," this action is also

not subject to

Executive Order 13211, "Actions

Concerning Regulations That

Electronic Filing; Received, Clerk's Office, October 25, 2007

58534

Federal Register/Vol. 72, No. 199/Tuesday, October 16, 2007/Rules and Regulations

SUbpart o-lIIinois

_ 1. The authority citation for part 52

continues to

read as follows:

Authority: 42 U.S.c. 7401 et

seq.

Incorporation by reference,

Intergovernmental relations, Nitrogen

oxides, Ozone, Particulate matter,

Reporting

and recordkeeping

requirements, Sulfur dioxide.

Dated: September 21.2007.

Bharat Mathur,

Acting Regional Administrator, Region 5.

_ For the reasons stated in the preamble,

part 52, chapter I, title 40 of the Code

of Federal Regulations is

amended as

follows:

Significantly Affect Energy Supply,

Distribution, or Use" (66 FR 28355, May

22,2001).

Regulatory Flexibility Act

This action merely approves state law

as meeting Federal requirements

and

imposes no additional requirements

beyond those imposed by state law.

Accordingly, the Administrator certifies

that this rule will

not have a significant

economic impact

on a substantial

number

of small entities under the

Regulatory Flexibility Act (5 U.S.C. 601

et seq.).

Unfunded Mandates Reform

Act

Because this rule approves pre-

existing requirements

under state law

and does not impose any additional

enforceable

duty beyond that required

by state law, it does not contain any

unfunded mandate or significantly or

uniquely affect small governments, as

described

in the Unfunded Mandates

Reform Act of 1995 (Pub.

L. 104-4).

Executive Order

13175:

Consultation

and Coordination With Indian Tribal

Governments

This rule also does not have tribal

implications because it will

not have a

substantial direct effect

on one or more

Indian tribes,

on the relationship

between

the Federal Government and

Indian tribes, or on the distribution of

power

and responsibilities between the

Federal Government and Indian tribes,

as specified

by Executive Order 13175

(59

FR 22951, November 9,2000).

Executive Order

13132:

Federalism

This action also does not have

Federalism implications because it does

not have substantial direct effects

on the

states,

on the relationship between the

national government and the states, or

on the distribution of power and

responsibilities among the various

levels of government, as specified

Executive Order 13132 (64 FR 43255,

August 10,1999). This action merely

approves a state rule implementing a

federal standard,

and does not alter the

relationship or the distribution of power

and responsibilities established in the

Clean Air Act.

Executive Order

13045:

Protection of

Children From Environmental Health

and Safety Risks

This rule also is not subject to

Executive Order 13045 "Protection of

Children from Environmental Health

Risks

and Safety Risks" (62 FR 19885,

April 23, 1997), because it approves a

state rule implementing a Federal

Standard.

National Technology Transfer

Advancement Act

In reviewing SIP submissions, EPA's

role is to approve state choices,

provided that they meet the criteria of

the Clean Air Act. In this context, in the

absence of a prior existing requirement

for

the state to use voluntary consensus

standards

(VCS), EPA has no authority

to disapprove a SIP submission for

failure to use

VCS.

would thus be

inconsistent

with applicable law for

EPA,

when it reviews a SIP submission,

to use VCS in place of a SIP submission

that otherwise satisfies the provisions of

PART 52-[AMENDED]

the Clean Air Act. Thus, the

requirements of section 12(d) of the

National Technology Transfer and

Aavancement Act of 1995 (15 U.S.C.

272 note) do not apply.

Paperwork Reduction Act

This rule does not.impose an

information collection burden under the - 2. Section 52.720 is amended by

provisions

of the Paperwork Reduction

adding paragraph (c)(178) to read as

Act

of 1995 (44 U.S.C. 3501

et seq.).

follows:

Congressional Review Act

52.720 Identification of plan.

The Congressional Review Act, 5

U.S.c. 801

et seq.,

as added by the Small

(c)* * *

Business Regulatory Enforcement

Fairness Act of 1996, generally provides

(178) On September 14, 2007, e

that before a rule may take effect, the

Illinois Environmental Protection

agency promulgating

the rule must

Agency submitted rules and related

submit a rule report, which includes a

material to address requirements under

copy of the rule, to each House of the

the Clean Air Interstate Rule. These

Congress

and to the Comptroller General rules mandate participation of electric

of the United States. EPA will submit a

generating units in EPA-run trading

report containing this rule

and other

programs for annual emissions of sulfur

required information to the U.S. Senate,

dioxide,

annual emissions of nitrogen

the U.S. House of Representatives, and

oxides, and ozone season emissions of

the Comptroller General of the United

nitrogen oxides. These rules provide a

States prior to publication

of the rule in

methodology for allocating allowances

the Federal Register. A major rule

to subject sources and require these

cannot take effect until 60 days after

sources to hold sufficient allowances to

published in the Federal Register.

accommodate their emissions and to

This action is

not a "major rule" as

meet various monitoring, recordkeeping,

defined

by 5 U.S.C. 804(2).

and reporting requirements. EPA is

Under section 307(b)(1) of the Clean

approving the submitted provisions of

Air

Act, petitions for judicial review of

Subparts A, C, D, and E of Part 225 of

this action must be filed in the United

Title 35 of Illinois Administrative Code;

States Court of Appeals for the

EPA is deferring action

on Subpart F.

appropriate circuit by December 17,

2007. Filing a petition for

(i) Incorporation by reference.

reconsideration by

the Administrator of

(A) Title 35 of the Illinois

this final rule does

not affect the finality Administrative Code: Environmental

of this rule for the purposes of judicial

Protection, Subtitle B: Air Pollution,

review

nor does it extend the time

Chapter I: Pollution Control Board, Part

within which a petition for judicial

225: Control of Emissions from Large

review may be filed,

and shall not

Combustion Sources, effective August

postpone the effectiveness of

such rule

31,2007, including Subpart A: General

or action. This action may

not be

Provisions, Subpart C: Clean Air Act

challenged later

in proceedings to

Interstate Rule (CAIR)

S02

Trading

enforce its requirements. (See section

Program, Subpart

D: CAIR NOx Annual

307(b)(2).)

Trading Program, and Subpart E: CAIR

List

of Subjects

40 CFR Part 52

NOx Ozone Season Trading Program.

Environmental protection,

Air

[FR Doc. E7-20142 Filed 10-15-07; 8:45 am]

pollution control, Electric utilities,

BILLING CODE

Electronic Filing; Received, Clerk's Office, October 25, 2007

CERTIFICATE OF SERVICE

I, the undersigned, certify that on this 25

day of October, 2007, I have served

electronically the attached

MOTION TO FILE INSTANTER

and

STATUS REPORT,

upon

the following persons:

John

T. Therriault, Assistant 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, postage affixed, to the persons listed on the

ATTACHED SERVICE LIST.

Sheldon A. Zabel

Kathleen C. Bassi

Stephen

J. Bonebrake

SCHIFF HARDIN, LLP

6600 Sears Tower

233 South Wacker Drive

Chicago, Illinois 60606

312-258-5500

Electronic Filing; Received, Clerk's Office, October 25, 2007

SERVICE LIST

(AS 07-03)

Rachel L. Doctors

Assistant Counsel

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.gov

Faith E. Bugel

Environmental Law and Policy Center

35 East Wacker Drive, Suite 1300

Chicago, Illinois 60601

fbugel@elpc.org

CH2\ 1615591.4

Mr. Bradley P. Halloran

Hearing Officer

Illinois Pollution Control Board

James

R. Thompson Center

100 West Randolph Street, Suite 11-500

Chicago, Illinois 60601

hallorab@ipcb.state.il.us

Electronic Filing; Received, Clerk's Office, October 25, 2007