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Lee
R.
Cunniitgham
(rpcrt
Invironi
inti1
CouncI
unninghamidrnwor1d.com
August
12,
2009
?.
ii
RECEIVED
CLERK’S
OFFICE
AUG
132009
STATE
OF
IWNOIS
Pollution
Control
Board
Mr. Timothy Fox,
Hearing
Officer
Illinois
Pollution
Control
Board
James
R.
Thompson
Center
100
W.
Randolph
Suite
l1500
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:
The
Illinois
Pollution
Control
Board’s
(“Board”) August
6, 2009
Order
requested
responses
to
the
Illinois
EnviromnentaL
Regulatory
Group’s (“lRC3’)
Motion
for
Emergency
Rule
and
Motion
for
Expedited
Action
on
TERG’s
Alternative
Proposal
(coJiectively
“Motions”).
In
respnse
to the
Board’s
request,
the
Archer
Daniels
Midland
Company
(“ADM”) offers
the
following:
1.
ADM’s
Decatur
and
Peoria
Plants
are
subject
to
the
NOx
Budget
Rule,
35
IlL
Admin.
Code
Part
217,
Subpart
U.
Among
the
non-EGIJ’s
affected
by
[ERG’s
Motions,
ADM’s
Decatur
Cgcneration Plant
alone
has historically been
allocated
1666
allowances
out
of a
total
of
4882
allowances. As a
result,
ADM
is
the
largest
single
entity
aflóctcd
by
this
rule.
2.
As part
of a
federal
consent
decree,
ADM
agreed
to
install
Selective
non-Catalytic
Reduction
(SNCR)
equipment to reduce
nitrogen
oxides
(NOx)
on
six
boilers
at its
ADM
1.
Archer
Daniels
Midlai,d
Conpany
46ô6 Prhs
‘arkwiy
ro.
Box
1470,
Dccatiai
Ii.
62526
T217.451.488:3
I-
217.451,4151
2009-08-13 11:38
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Decatur Cogeneration Plant.
The consent decree did not require
this installation
to be
accomplished until 2012.
3. 1
lowever,
due largely to the
provisions of the NOx Budget
Rule, ADM opted to
install SNCR on the boilers at its Decatur
plant in 2006. In the subsequent
three years,
NOx emissions were greatly
reduced by the addition of
this control equipment.
4.
ADM has not received NOx allowances for the
2009 ozone season, nor
for any
subsequent years. As a result,
ADM is subject to potential enforcement
due to Illinois
EPA’s failure to adopt an
approvable SiP to allow USEPA
to issue such allowances,
5. The current version of
the NOx Budget Rule, 35 Ill.
Admin. Code Part
217, Subpart
U is a valid
and enforceable regulation in Illinois
that requires subject
sources
to hold
NOx allowances
for each ton ofNOx emitted during
the
ozone season by November
30 of the applicable year. Since USEPA
is
no longer
issuing allowances for the NOx
Budget Trading
Program, affected entities including
ADM
are left with
no viable
means of compliance. It is unclear whether
affected
non-FGIJs
could
purchase CAIR
allowances
in order to comply, and even
i r
they could
do so, the
purchase of
sufficient CAIR allowances would be
extremely
expensive.
6. In addition to the legal jeopardy, the
lack
of a valid rule places
upon the
alièetcd non
EGUs, the inability to trade
excess
allowances which removes
the
incentive to over-
control emissions
and
penalizes
the entities, such as
ADM, that have already
done
so.
7. Under the
market
incentives of the NOx Budget
Rule, affected
non-EGIJs
have
reduced
their collective ozone season
emissions
to
approximately
53% of their
allocations. Absent such incentives,
it is questionable
whether
this degree of
emission
control will be
maintained.
2009-08-13
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In
light
of
the above,
ADM
requests that the Board grant
IERO’s Motion for
Emergency Rule
in
order
to
require
that 2009 NOx allowances
be distributed to affected
sources, and
grant
TERO’s
Motion 1kw
Fxpedited
Action on IERO’s Alternative
Proposal in order to
bring
NOx
SIP Call
budget
units inLo the
CAIR NOx
Ozone Season Trading
Program
(hr the
2009 control period
and
beyond.
Respectfully submitted,
Archer Daniels Midland Company
By:
c
4
Lee
R. CunninghanJ
Corporate Environmental Counsel
Archer
Daniels Midland Company
4666 Faries Parkway, P.O. Box 1470,
Decatur, IL 62526
217-451-4883
