08/12/2009

WED

11:48

FAX

217

2536925

DUKE

ENERGY

OF

TUSCOLA

Ij001/002

DUKE

ENERGY

GENERATION

Duke

SERVICES,

INC.

Ener

®

625

East

US

Highway

36

Tuscola,

IL

61953-7507

Generation

Services

217

253

6922

RECEiVED

217253

6925

fax

CLERKS

OFFICE

August

11,2009

AUG

12

2009

STATE

OF

ILLINOIS

Mr.

Timothy

Fox,

Hearing

Officer

PoIlUtlOfl

Control

Board

Illinois

Pollution

Control

Board

James

R.

Thompson

Center

7

C’

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

Part

217;

Response

to

Motions

by

the

illinois

Environmental

Regulatory

Group

Mr.

Fox:

1

am

writing

on

behalf

of

SUEZ

-

DEGS

of

Tuscola,

LLC

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

IERO’s

Alternative

Proposal

(collectively

“Motions”).

We

would

like

to

offer

our

support

for

the

Motions,

and

urge

the

Board

to

consider

the

following

in

ruling

on

the

Motions:

1.

We

believe

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.

We

are

an

owner/operator

of

budget

unit(s)

subject

to

the

current

Subpart

U.

35

Ill.

Admin.

Code

Part

217.Subpart

U.

3.

We

have

not

received

allocations

of

NOx

allowances

for

the

2009

ozone

season,

nor

for

any

subsequent

years.

4.

We

understand

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.

Pagel

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5.

We understand

that the

USEPA is

no

longer

issuing

allowances

for

the

NOx

Budget

Trading

Program,

as would

be

required

to satisf’

the

above described

requirement.

6.

We

understand

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

we

demonstrate

compliance

with the

requirement,

due

to

our

inability

to obtain

CAIR

compliance

accounts

from

the USEPA

Clean

Air

Markets Division

(“CAMD”),

absent

a

federally

approved

trading

program

in Illinois.

7.

We are

concerned

that we,

through

no

fault

of

our own,

may

be

in

violation

of

both the

law [and/or]

our Clean

Air Act

Permit

Program

(“CAAPP”)

permits,

if

inunediate

action is not

taken to

remedy

the above

described

circumstances.

SUEZ

- DEGS

of Tuscola,

LLC

appreciates

the

opportunity

to

provide this

response.

In

light of the

above,

we request

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.

Respectfully

Submitted,

6

4d

X

Robert L.

Denton Jr.

VP

of

Operations

SUEZ

- DEGS

of

Tuscola,

LLC

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