BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
NITROGEN OXIDES EMISSIONS
FROM
VARIOUS SOURCE CATEGORIES:
AMENDMENTS TO 35 ILL.ADM.CODE
PARTS 211 AND 217.
)
)
)
)
)
)
R08-19
(Rulemaking - Air)
NOTICE OF FILING
To:
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 filed with the Office of the Clerk of the
Pollution Control Board
MIDWEST GENERATION'S QUESTIONS FOR AGENCY
WITNESSES.
-~~L'
"t--lt'
Kat~en
C. BassI
Dated: September 15, 2008
Electronic Filing - Received, Clerk's Office, September 15, 2008
Kathleen C. Bassi
Stephen
J. Bonebrake
Sheldon
A. Zabel
SCHIFF HARDIN, LLP
6600 Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
312-258-5500
Fax: 312-258-5600
Electronic Filing - Received, Clerk's Office, September 15, 2008
CERTIFICATE OF SERVICE
I, the undersigned, certify that on this 15
th
day of September, 2008, I have served
electronically the attached
MIDWEST GENERATION'S QUESTIONS FOR AGENCY
WITNESSES
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 (except for Matthew
J. Dunn and Alec M. Davis) and by first class mail,
postage affixed upon persons included on the
ATTACHED SERVICE LIST.
~'
athleen C. BassI
Kathleen
C. Bassi
Stephen
J. Bonebrake
Sheldon
A. Zabel
SCHIFF HARDIN, LLP
6600 Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
312-258-5500
Fax: 312-258-5600
Electronic Filing - Received, Clerk's Office, September 15, 2008
SERVICE LIST
(R08-19)
Timothy Fox
Hearing Officer
ILLINOIS POLLUTION CONTROL BOARD
100 West Randolph, Suite 11-500
Chicago, Illinois 60601
foxt@ipcb.state.il.us
Matthew
J. Dunn, Chief
ILLINOIS ATTORNEY GENERAL'S
OFFICE
Environmental Bureau, North
69 West Washington Street, Suite 1800
Chicago, Illinois 60602
Katherine D. Hodge
Monica
T. Rios
HODGE DWYER ZEMAN
3150 Roland Avenue, P.O. Box 5776
Springfield, Illinois 62705-5776
khodge@hdzlaw.com
mrios@hdzlaw.com
CH2\2590926.2
Gina Roccaforte
Dana Vetterhoffer
Division
of Legal Counsel
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
1021 North Grand Avenue, East
P.O. Box 19276
Springfield, Illinois 62794-9276
gina.roccaforte@illinois.gov
dana.vetterhoffer@illinois.gov
William Richardson, Chief Legal Counsel
Virginia I Yang, Deputy Counsel
ILLINOIS DEPARTMENT OF NATURAL
RESOURCES
One Natural Resources Way
Springfield, Illinois 67202-1271
bill.richardson@illinois.gov
virginia.yang@illinois.gov
Alec M. Davis
General Counsel
ILLINOIS ENVIRONMENTAL
REGULATORY GROUP
215 East Adams Street
Springfield, Illinois 62701
Electronic Filing - Received, Clerk's Office, September 15, 2008
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN
THE MATTER OF:
NITROGEN OXIDES EMISSIONS FROM
VARIOUS SOURCE CATEGORIES:
AMENDMENTS TO 35 ILL.ADM.CODE
PARTS 211 AND 217.
)
)
)
)
)
)
R08-19
(Rulemaking - Air)
MIDWEST GENERATION'S QUESTIONS FOR AGENCY WITNESSES
NOW COMES MIDWEST GENERATION, by and through its attorneys, SCHIFF
HARDIN LLP, and, pursuant to the Hearing Officer's Order (June 12,2008), submits the
following questions for the witnesses
of the Illinois Environmental Protection Agency ("Agency")
to be addressed at the hearing in this matter scheduled for October 14,2008:
Questions for Mr. Kaleel
1.
Please explain the relationship between these proposed rules establishing reasonably
available control technology ("RACT")/reasonably available control measures ("RACM")
for the current ozone and fine particulate matter ("PM2.5") national ambient air quality
standards ("NAAQS") and what may be required for the revised ozone and PM2.5
NAAQS.
2.
What distinction, in the definitions or use, between industrial boilers, fossil fuel-fired
boilers, and electric generating units ("EGUs") does the Agency make or intend in this
rule?
3.
If there are no cement kilns in the nonattainment areas, why are cement kilns included in
this rulemaking? Likewise,
if there are no aluminum melting furnaces affected, why does
the rule include that sector?
4.
How will the limitation of a unit to only one emissions averaging plan in this rule interact
with the averaging plan provisions
of other rules? That is, is it the Agency's intent for this
rule to preclude participation or inclusion
of a unit that is in an averaging plan under this
rule from participating in averaging plans under other rules and vice versa?
5.
In Section 217.l50(a)(2), the regulatory language uses the word "emits." How will the
Agency determine whether a unit is subject to the rule? That is, how will the Agency
determine whether a unit emits, as opposed to having the potential to emit, at the threshold
levels?
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Electronic Filing - Received, Clerk's Office, September 15, 2008
6.
Applicability of Subpart M and the nonapplicability of Subpart D are premised upon the
applicability
of the Part 225, Subparts C, D, and E ("the Illinois [Clean Air Interstate Rule]
CAIR") to electric generating units ("EODs"). However, the federal rule underlying the
Illinois CAIR has been overturned (assuming that the D.C. Circuit Court issues the
mandate for its decision in appeal
of the rule), thus invalidating the Illinois CAIR.
Therefore, it appears that EOD
s, which the Agency apparently intended to cover in
Subpart M
of this rulemaking, are covered by Subpart D. Does the Agency intend to
amend the language in Subpart M?
If so, how?
7.
What does the Agency consider to be the nominal cost per ton for RACT for nitrogen
oxides ("NOx")?
8.
Does a load shaving unit (Section 211.3475) include a peaker power plant?
9.
Section 217.150(a) says, "The provisions of this Subpart and Subparts D, E, F,
0,
H, and
M"
of this Part apply to ... 1) All sources...." (Emphasis added.) Is it the Agency's
intent that all
of these subparts actually apply to all sources in the specified geographic
areas? Isn'tactually the Agency'sintent that only one subpart will apply to a unit or units
at threshold sources, as determined by the characteristics
of the unit?
10.
The "all industrial boilers" language in Section 217.160(a) and similar language in the
other subparts could be construed to expand the scope
of Section 217.150(a)(2), which
refers to "any industrial boiler [and other types
of emission units] that emits NOx in an
amount equal to or greater than
15 tons per year and equal to or greater than five tons per
ozone season."
Is it the Agency's intent to expand the applicability of the rule in this way?
11.
Is it the Agency'sintent that the proposed rule applies to areas designated nonattainment
for either ozone or PM2.5?
12.
What comprises the second compliance period if the first is May 1, 2010, through April
30, 2011, and then is subsequently on a calendar year basis?
See
Section 217.152.
13.
How is the second sentence of Section 217.152(b) ("The owner or operator of an emission
unit that is subject to Subpart D, E, F,
0,
H, or M must operate such unit in a manner
consistent with good air pollution control practice to minimize NOx emissions." related to
the compliance date?
14.
Can the recordkeeping systems that sources already have in place comprise the "logs"
required at Sections 217.156(b)(8) and (9), assuming all
of the information required by the
rule is included?
15.
What is an "applicable compliance period" referred to in Section 217.156(g)?
16.
Does Section 217.156(k), which requires compliance certifications, recordkeeping, and
reporting for Subpart M units pursuant to 40 CFR Part 96, supersede the other
recordkeeping and reporting requirements
of Section 217.156?
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Electronic Filing - Received, Clerk's Office, September 15, 2008
17.
Does the Agency have information confirming that the stacks at affected units that are
typically small can be tested safely,
as required by Section 217.157?
18.
Section 21 7.158(b) requires that averaging plans be submitted by May 1, 2010. What if a
source decides in 2010 that it does not want to average, but in 2015 it decides that it does
want to average? Is that source precluded from establishing an averaging plan? Is this a
"once out/always out" provision?
19.
What is the Agency's basis for establishing a rate of 0.08 Ib/mmBtu rate for gas-fired
industrial boilers greater than 100 mmBtu? (Section 217.164(a))
20.
Based upon the proposed applicability language in Subpart M, Section 217.340, assuming
the D.C. Circuit Court issues the mandate implementing its decision in the appeal
of the
CAIR, EGUs would be subject to the provisions
of Subpart D. Is the Agency amenable to
amending Sections 217.340, 217.342, 211.3100, and 217.160, as follows:
Section 21 7.340
Applicability [Subpart M]
Notwithstanding Subpart V or W
of this Part, the provisions of Subpart C of this
Part and this Subpart apply to all fossil fuel fired stationary boilers subject to the
CA:IR
NOx Trading Programs under Subpart D or E of Part 225 any fossil fuel-
fired stationary boiler serving a generator that has a nameplate capacity greater
than
25 MWe and produces electricity for sale, excluding any units listed in
Appendix D
of this Part, located at sources subject to this Subpart pursuant to
Section
21 7.150 of this Part.
Section 217.342
Exemptions
a)
Notwithstanding Section 217.340
of this Subpart, the provisions of this
Subpart do not apply to a fossil fuel-fired stationary boiler operating under
a federally enforceable limit
of NOx emissions from such boiler to less
than
15 tons per year and less than five tons per ozone season.
b)
Notwithstanding Section 217.340
of this Subpart, the provisions of this
Subpart
do not apply to a coal-fired stationary boiler that commenced
operation before January
1,2008, that is complying with Part 225.Subpart
B through the multi-pollutant standard under Section 225.233
of Part 225
or the combined pollutant standards under Subpart F
of Part 225.
Section 211.3100
Industrial Boiler
"Industrial boiler" means, for purposes
of Part 21 7, an enclosed vessel in which
water is heated and circulated either as hot water or as steam for heating or for
power, or both. This term does not include boilers serving a generator that has a
nameplate capacity greater than
25 MWe and produces electricity for sale, and
cogeneration units, as that term is defined in Section 225.130
of Part 225, if such
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Electronic Filing - Received, Clerk's Office, September 15, 2008
boilers or cogeneration units are subject to the CAIR NOx Trading Programs
under Subpart D or E
of Part 225.
Section 217.160
Applicability [Subpart
D]
b)
The provisions of this Subpart do not apply to boilers serving a generator that has a
nameplate capacity greater than
25 MWe and produces electricity for sale, and
cogeneration units, as that term is defined in Section 225.230
of Part 225, if such
boilers or cogeneration units are subject
to the Cl\IR }iOx Trading Programs
under Subpart D or E
of Part 225.
21.
What is the basis for determining that the 0.09Ib/mmBtu rate at Section 217.344(a) is
RACT?
22.
The Technical Support Document ("TSD") indicates on page 130 that there are a total
of
12 industrial boilers subject to the NOx SIP call affected by this proposed rule while the
Statement
of Reasons on page 10 states that there are 80 industrial boilers affected by the
proposed rule. Are these additional 50 industrial boilers all less than 250 mmBtu?
23.
The TSD claims there are a total
of 18 EODs subject to the rule, while the Statement of
Reasons says there are 20 "fossil fuel-fired stationary boilers" subject to the rule. Are
there fossil fuel-fired stationary boilers that are not EODs that are subject to the rule?
Questions for Dr. Staudt
24.
Are NO and
N0
2
the only components
of NOx?
25.
Explain oxy-combustion. In your testimony, you say that NOx is reduced by reducing the
amount
of oxygen available for the nitrogen to combine with, yet oxy-combustion appears
to provide even more oxygen in the combustion chamber.
26.
Your testimony suggests there are other post-combustion controls besides SCR and SNCR.
What are those other types
of post-combustion controls?
27.
Is SCR RACT? Or is it beyond RACT?
28.
Would a wet scrubber intended to reduce S02 be a NOx scrubber as well
if the NOx were
first oxidized?
See
Section 1.2.2, page 4 of the TSD.
29.
What does the following mean: "NOx emissions from residual oil-fire boilers can be
controlled level by using residual fuel oil.
..." (Emphasis added.)
See
Section 2.1, page 5
of the TSD.
30.
Is it the case that there are currently no wood-fired boilers that would be subject to the
proposed rule?
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Electronic Filing - Received, Clerk's Office, September 15, 2008
31.
Does the fact that pulverized coal is used in wall-fired boilers contribute to the NOx
levels?
See
Section 2.2.1, page 9
If.
of the TSD.
32.
Page
13 of the TSD says that Cleaver Brooks illustrates that with proper control, NOx
emissions can be reduced, and page
15 of the TSD says that Cleaver Brooks illustrates that
with proper retrofits, NOx emissions can be reduced. What are those "proper" controls
and retrofits? How are they effective in reducing NOx? Who is Cleaver Brooks?
33.
How do excess air and complete combustion affect safety?
See
Section 2.3.1, page 20 of
the TSD.
34.
Page 22
of the TSD refers to 100-600 hp boilers. How large are these boilers in terms of
mmBtu heat input capacity?
35.
Please describe the combustion tuning training requirement and where companies may
obtain such training.
36.
Regarding SNCR, the TSD says that there need to be several injection points to inject the
reagent at proper temperatures for large boilers. What happens
if the reagent is injected at
an improper temperature?
See
page 30 of the TSD.
37.
Why would the cost
of SNCR on a wood-fired boiler be about the same as for a coal-fired
boiler
of the same size?
38.
Looking at Table 2-12a, what is a "Wood Fired IPP"? In this same column, the table says
that the fuels are "Biomass Wood/Coal." What does this mean?
39.
Page 30
of the TSD states, "For EGU's SNCR capital cost is in the range of about
$15IKW, and in most cases NOx reductions in the rage
of about 30% are possible." How
does this translate to dollars per ton
of NOx removed?
40.
On page 36 of the TSD is a discussion of the cost of SCR; the TSD appears to essentially
argue that a cost expressed in dollars per mmBtu is a better measure
of RACT because an
expression in dollars per ton removed depends upon baseline NOx. Please explain.
41.
Have the cost calculations for industrial/commercial/institutional ("ICI") boilers included
retrofit issues?
42.
It
appears that the TSD includes a number of evaluations of cost-effectiveness of proposed
rule from a number
of different sources. What is the bottom line,
i.e.,
the Agency's
determination
of the cost-effectiveness of the proposed rule, in at least 2006 dollars?
See
TSD pages 41-42.
43.
What is the significance
of the statement on page 126 of the TSD that "the [USEPA cost]
model does not allow for differences in stack height, or explicitly distinguish between Part
60 and Part
75 systems"?
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Electronic Filing - Received, Clerk's Office, September 15, 2008
44.
The TSD at page 126 suggests that opacity monitoring is required by this rule where a
source, because
of the size of the affected unit, must employ Part 75 monitoring. Is it the
intent
of this rule to require opacity monitoring? If so, why is opacity monitoring part of a
NOx RACT rule?
45.
What is a "point source"?
See
TSD page 130. Is the term defined in the rule?
46.
The TSD states on page 131, "The NOx inventory was generated through the use
of year
2005 annual emission reports submitted pursuant to
35 Ill. Adm. Code Part 234. For our
purpose, year 2005, instead
of year 2002, was selected because some sources have been
either shut down or modified since 2002." What is the significance
of 2002 that the TSD
would explain using 2005 data instead?
47.
Please explain the difference between Tables
H-l and I-I. Appendix pages 31 and 33.
48.
In Appendix A, Table A-4, what does "703" in the first column mean?
Respectfully submitted,
MIDWEST GENERATION, LLC,
by:
Dated: September 15, 2008
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
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Electronic Filing - Received, Clerk's Office, September 15, 2008
