dcl
    /
    Chemical
    industry
    oIc
    August 11,2009
    AUG
    r,
    Mr. Timothy Fox,
    Hearing
    Officer
    Illinois Pollution
    Control Board
    James R. Thompson
    Center
    j’.
    -
    100 W.
    Randolph, Suite 11-500
    Chicago,
    Illinois 60601
    RE:
    Rulemaking R2006-22
    In the Matter
    of: NOx
    Trading Program:
    Amendments
    to 35 III. Adm.
    Code
    Pan
    217;
    Response
    to
    Motions
    by
    the Illinois
    Environmental Regulatory
    Group
    Dear Tim:
    I am writing
    on behalf of the Chemical
    Industry Council
    of Illinois (CICI)
    in
    response
    to the
    Illinois
    Pollution Control Board’s
    (“Board”)
    August
    6, 2009 Order requesting
    responses
    to
    the
    Illinois Environmental
    Regulatory
    Group’s (“IERG”)
    Motion for Emergency
    Rule and
    Motion
    for
    Expedited
    Action
    on
    IERG’s Alternative
    Proposal (collectively
    “Motions”).
    CICI would like
    to
    offer our support
    for the Motions,
    and urge the Board
    to
    consider
    the following in ruling
    on
    the
    Motions:
    1.
    CICI believes it is
    in the best
    interest of
    business in Illinois to
    adopt rules,
    such as the
    emergency
    rule
    and
    alternative
    proposal described
    in
    the
    Motions, that require
    NOx
    allowances to
    be
    distributed
    for
    the 2009
    ozone season,
    as
    well
    as subsequent
    control
    periods.
    2.
    The CICI membership
    includes companies
    that are owners
    or
    operators
    of budget
    units
    subject to
    the
    current
    Subpart U. 35 III.
    Admin.
    Code
    Part
    217.Subpart
    U.
    3.
    CICI understands
    that no
    sources
    subject to
    the
    current
    Subpart
    U
    have received
    allocations
    of NOx allowances
    for the
    2009 ozone
    season, nor for
    any
    subsequent
    years.
    4.
    CICI
    understands that the
    current version
    of
    Subpart
    U
    is
    a
    valid and
    enforceable
    regulation
    in Illinois that
    requires
    subject sources
    to hold NOx allowances
    for each
    ton of
    NOx emitted
    during the ozone
    season
    by
    November
    30 of the
    applicable year.
    5.
    CICI
    understands
    that the
    USEPA is
    no
    longer issuing
    allowances for the
    NOx Budget
    Trading Program,
    as would be
    required
    to satisfy the above
    described requirement.
    Headquarters
    1400 E.
    Touhy Ave.,
    Suite 110, Des Plaines,
    IL 60018 Tel:
    847/544-5995 Fax:
    847/544-5999
    Springfield Office
    400
    W.
    Monroe, Suite 205,
    Springfield,
    IL 62704 Tel:
    217/522-5805
    Fax: 217/522-5815
    www.cicil.net

    cici
    /
    flSt10
    6.
    CICI
    understands that NOx
    allowances could
    potentially
    be obtained through
    the
    purchase
    of
    Clean
    Air
    Interstate
    Rule (“CAIR”)
    NOx
    allowances,
    although
    we
    are
    uncertain whether
    those allowances would
    be legally
    sufficient
    to
    satisfy the Subpart
    U
    requirement to
    hold NOx
    SIP
    Call
    allowances.
    Nor, even if
    sufficient,
    could our
    members
    demonstrate compliance
    with the
    requirement,
    due to their inability
    to
    obtain
    CAIR
    compliance accounts
    from the USEPA
    Clean Air Markets
    Division (“CAMD”),
    absent
    a
    federally approved
    trading program
    in
    Illinois.
    7.
    CICI
    is
    concerned
    that our
    members,
    through no fault
    of their own, may
    be in violation
    of
    both the
    law and their Clean
    Air
    Act Permit Program
    (“CAAPP”)
    permits, if immediate
    action is
    not
    taken
    to
    remedy the above
    described
    circumstances.
    The potential for
    violation
    of an applicable regulation
    and/or
    CAAPP permit
    condition could subject
    them
    to federal,
    state, or third-party
    enforcement
    actions, in addition
    to being required
    to
    disclose
    the
    potential
    liability
    on
    Securities
    and Exchange
    Commission filings.
    CICI appreciates
    the opportunity
    to provide this
    response. In light
    of the above,
    dcl requests
    that
    the Board grant IERG’s
    Motion for Emergency
    Rule in
    order to require
    that 2009 NOx
    allowances be distributed
    to
    impacted
    sources,
    and grant
    IERG’s Motion for
    Expedited
    Action
    on IERG’s
    Alternative Proposal
    in
    order to bring
    NOx
    SIP Call
    budget
    units
    into the
    CAIR
    NOx
    Ozone Season Trading
    Program
    for
    the 2010
    control
    period
    and
    beyond.
    Thank you for
    your
    time
    and
    consideration
    in
    understanding
    this
    issue.
    If
    you
    or your staff
    has
    any questions concerning
    this or
    any other
    matter,
    do
    not
    hesitate to contact
    us
    in
    the
    Springfield office.
    Sincerely,
    Mark A. BieI
    Executive
    Director
    Headquarters
    1400 E.
    Touhy Ave., Suite
    110,
    Des
    Plaines,
    IL
    60018 Tel:
    847/544-5995
    Fax:
    847/544-5999
    Springfield
    Office
    400W. Monroe,
    Suite 205, Springfield,
    IL 62704
    Tel:
    217/522-5805
    Fax: 217/522-5815
    www.cicil.net

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