BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
NITROGEN OXIDES EMISSIONS FROM
VARIOUS SOURCE CATEGORIES:
AMENDMENTS TO
3S ILL.ADM.CODE
PARTS 211 AND 217.
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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 6060 I
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
POST-HEARING COMMENTS OF MIDWEST GENERATION.
----.~~.
'1-'f'I-
Kathleen C. BassI
Dated: March 23, 2009
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
Electronic Filing - Received, Clerk's Office, March 23, 2009
* * * * * PC # 9 * * * * *
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.
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R08-I9
(Rulemaking - Air)
POST-HEARING COMMENTS OF MIDWEST GENERATION
NOW COMES Participant, MIDWEST GENERATION, LLC, by and through its
attorneys, SCHIFF HARDIN LLP, and offers these Post-Hearing Comments. Midwest
Generation, LLC
(,'Midwest Generation") participated in this rulemaking both through the
Illinois Environmental Protection Agency's
("Agency") general outreach activities and through
the Illinois Pollution Control Board's
("Board") hearings, where Midwest Generation presented
testimony regarding proposed Subpart M and related general sections. Midwest Generation also
discussed various provisions and implications
of the proposal with the Agency independently of
the Agency's general outreach efforts.
With the amendments proposed to the Board by the Agency in its Motion to Amend
Rulemaking Proposal ("Agency's Motion") filed January 30, 2009, Midwest Generation
generally supports the Agency's proposal
as it applies to electric generating units ("EGUs").
The proposed amendments incorporate by reference provisions agreed to between the Agency
and Midwest Generation as part
of the Agency's Answers to Midwest Generation's Questions
for Agency Witnesses ("Agency's Answers"), which were filed before this Board on
September 30, 2008.
In the Agency's Answers, the Agency proposed to amend the proposed
rule
as follows:
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Electronic Filing - Received, Clerk's Office, March 23, 2009
* * * * * PC # 9 * * * * *
Section 217.340
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 fessil
fllel fired statisRary bsilers sHbjset ts tfie
CArR NOll TradiRg Prsgrams HRder SHbpart D sr
B
sf Part
~
any fossil fuel-
tIred stationary boiler serving at any time 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 217.150
of this Part.
Section 217.342
Exemptions
a)
Notwithstanding Section 217.340
ofthis 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 217, 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,
aRd
esgeReratisn Hnits, as that term is defined in SeetisR 225.130 sf Part 225, if such
boilers
sr esgeneratisn Hnits are sHbjeet ts meet the applicability criteria under
Subpart M
of Part 217 the CArR NO}[ Trading Pregrams HRder SHbpart D sr
B
sf
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 eegsneratisR
HRits, as that term is defiRed iR
Seetisn 225.230 sf Part 225, if such boilers sr esgeneratisll HRits are
subjeet
ts meet the applicability criteria under Subpart M of Part 217
the
CArR NOll Trading Pregrams Hnder SHbpart D sr
B
sf Part 225.
On January 30, 2009, the Agency proposed to amend the rule as follows:
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Electronic Filing - Received, Clerk's Office, March 23, 2009
* * * * * PC # 9 * * * * *
Section 217.344
Emissions Limitations
On and after January I, 2012,
no person shall cause or allow emissions of NOx into the
atmosphere from any fossil fuel-fired stationary boiler to exceed the following
limitations. Compliance must
be demonstrated with the applicable emissions limitation
on an ozone season and annual basis.
Fuel
a)
b)
c)
Solid
Natural Gas
Liquid
Emission Unit Type
Boiler
Boiler
1) Boiler that commenced operation
before January I, 2008
NOx
Emissions
Limitation
(lb/mmBtu)
0.06
0.10
2) Boiler that commenced operation on 0.08
or after January
1,2008
The January 30, 2008, proposed amendments establish an emission rate of 0.12
Ib/mmBtu for solid-fueled
(i.e.,
coal-fired) fossil fuel-fired
(i.e,
EGUs) boilers. Through the
averaging provisions
of proposed Section 217.158, these emission limits can be determined on a
plant-wide basis. The Agency's proposed amendments (contained in the Agency's Answers and
the Agency's Motion) together clarify that EGUs that are subject to Part 225, Subparts C, D and
E are exempt from the emission limitations
of Subpart M.
Midwest Generation acknowledged in its testimony that a viable Illinois Clean Air
Interstate Rule ("CAIR"), which was in question at the time that the testimony was delivered,
exempts it from the emission limitations
of Subpart M. Midwest Generation further notes here
that the Illinois CAIR is, indeed, a viable rule today due to the decision
ofthe U.S. Court of
Appeals for the District of Columbia to remand without vacatur.
See North Carolina
v.
EPA,
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Electronic Filing - Received, Clerk's Office, March 23, 2009
* * * * * PC # 9 * * * * *
550 F.3d 1176 (D.C. Cir. 2008) (mandate issued January 7, 2009). All EGUs subject to Subpart
M are subject
to the 1llinois CAIR. Despite this circumstance, the Agency detennined that it was
appropriate or necessary
to establish specific emission limitations for the coal-fired EGUs. That
being the case, Midwest Generation determined that it was important
to ensure that the
limitations applicable
to coal-fired EGUs are, indeed, reasonably available control technology
("RACr).
As has been discussed in this rulemaking, the two major components of a RACT
determination are whether the proposed rate (or technology)
is achievable by available
technology and at a reasonable cost. Because
of its already low emission rates of nitrogen oxides
("NOx") at its units subject to this rule, Midwest Generation found that it could not comply with
the NOx rate proposed, 0.09 lbs/mmBtu, within the cost parameters that the Agency determined
was economically reasonable for this NOx RACT rule, $2500-3000 per ton
of NOx removed.
Subsequent
to the hearing on December 9-10, 2008, Midwest Generation discussed this
issue
in more detail with the Agency. Based on those discussions and as proposed in the
Agency's Motion, Midwest Generation agrees that 0.12 Ib/mmBtu
is supportable as NOx RACT
for coal-fired EGUs and encourages the Board
to adopt that rate rather than the rate included in
the Agency's original proposal, filed May
9, 2008.
Respectfully submitted,
MIDWEST GENERATION, LLC.,
by:
_~44J
One of Its Attorneys
-4-
Electronic Filing - Received, Clerk's Office, March 23, 2009
* * * * * PC # 9 * * * * *
Dated: March 23, 2009
Kathleen
C. Bassi
Stephen
1. Bonebrake
SCHIFF HARDIN,
LLP
6600 Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
312-258-5500
Fax: 312-258-2600
kbassi(ci)schi
ffh ardin.com
-5-
Electronic Filing - Received, Clerk's Office, March 23, 2009
* * * * * PC # 9 * * * * *
CERTIFICATE OF SERVICE
I,
the undersigned, certify that on this 23'd day of March, 2009, I have served
electronically the attached
POST-HEARING COMMENTS OF MIDWEST GENERATION
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 6060 I
and electronically (except for Matthew
J. Dunn) and by first class mail, postage affixed upon
persons included on the
ATTACHED SERVICE LIST.
-~~
, Kathleen
~i
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, March 23, 2009
* * * * * PC # 9 * * * * *
SERVICE LIST
(R08-19)
Timothy Fox
John Kim
Hearing Officer
Gina Roccaforte
ILLINOIS POLLUTION CONTROL BOARD
Dana Vetterhoffer
100 West Randolph, Suite I 1-500
Division
of Legal Counsel
Chicago, Illinois 6060 I
ILLINOIS ENVIRONMENTAL
foxtia)ipcb.state. iI. us
PROTECTION AGENCY
1021 North Grand Avenue, East
P.O. Box 19276
Springfield, Illinois 62794-9276
john.
i
.kim@illinois.gov
gina.roccaforteia)
iIIinoi s.gov
dana.vetterhoffer@illinois.gov
Matthew
J. Dunn, Chief
William Richardson, Chief Legal Counsel
ILLINOIS ATTORNEY
GENERAL'S
Virginia I Yang, Deputy Counsel
OFFICE
ILLINOIS DEPARTMENT OF NATURAL
Environmental Bureau, North
RESOURCES
69 West Washington Street, Suite 1800
One Natural Resources Way
Chicago, Illinois 60602
Springfield, Illinois 67202- I27 I
bill.richardson0lillinois.gov
virginia.yang@illinois.gov
Katherine
D. Hodge
Alec
M. Davis
Monica T. Rios
General Counsel
HODGE DWYER ZEMAN
ILLINOIS ENVIRONMENTAL
3 I50 Roland Avenue, P.O. Box 5776
REGULATORY GROUP
Springfield, Illinois 62705-5776
2 I5 East Adams Street
khodge(w.hdzlaw.com
Springfield, Illinois 6270 I
mrios@hdzlaw.com
adavisCalierg.org
Electronic Filing - Received, Clerk's Office, March 23, 2009
* * * * * PC # 9 * * * * *