AUG—13—2009
    14:42
    IL PETROLEUM COUNCIL
    217 523
    5131
    P.02/03
    Illinois
    petroleum
    council
    oAVIIA
    $YXVTA
    400W.
    Monroe, Suite
    205 • Springfield,
    IL 62704
    • 217/544.7404 • FAX
    217/523-5131
    Emcvøsi
    August
    13, 2009
    1
    CEIVED
    CLERK’S
    OFFICE
    Mr. Timothy Fox,
    Hearing Officer
    AUG
    13
    20fl9
    Illinois
    Pollution Control
    Board
    James
    it Thompson
    Center
    STATE
    OF
    ILLtNOIS
    100
    W.
    Randolph
    ?oIIut,on
    Controa
    doard
    Suitell-S00
    Chicago,
    Illinois
    60601
    1
    ‘Z...
    RE:
    Rulemaking
    R2006-22,
    In the
    Matter of: NOx
    Trading
    Program:
    Amendments
    to 35
    Ill. Adm. Code
    Part
    217; Response
    to
    Motions
    by the Illinois
    Environmental
    Regulatory Group
    Mr.
    Fox:
    I am writing on
    behal
    bE
    the Illinois
    Petroleum Council 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.
    Our
    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.
    We
    understand
    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.
    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.
    5.
    We
    understand that the USEPA
    is
    no
    longer issuing allowances
    for the
    NOx
    Budget Trading
    Program,
    as would be required
    to
    satisfy
    the above
    described
    requirement.

    AUG—13—2009
    14:42
    IL PETROLEUM
    COUNCIL
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    6.
    We
    understand that
    NOx allowances could
    potentially
    be
    obtained
    through
    the purchase of Clean
    Air Interstate
    Rule (“CAW”)
    NOx
    allowances,
    although we
    arc uncertain
    whether
    those
    allowances
    would be
    legally
    sufficient to
    satisfy the Subpart tJ
    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
    CATR
    compliance
    accounts
    from the
    LJSEPA
    Clean Air
    Markets
    Division
    (“CAMD”),
    absent a federally
    approved trading
    program in
    Jilinois.
    7.
    We
    are 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.
    The Illinois Petroleum
    Council
    appreciates the
    opportunity
    to
    provide
    this
    response.
    In light of
    the
    above,
    we request
    that
    the
    Board grant
    TERG’s
    Motion
    ror
    Emergency Rule
    in
    order
    to require that 2009
    NOx
    allowances
    he
    distributed
    to
    impacted
    sources, and
    grant
    JERG’s
    Motion
    for
    Expedited
    Action on TERG’s
    Alternative Proposal
    in
    order
    to bring
    NOx SIP Call budget
    units
    into the
    CAW
    NOx
    Ozone
    Season
    Trading
    Program
    for the 2010
    control period and
    beyond.
    Respectfully
    submitted,
    By:
    David
    A.
    Sykuta
    David
    A.
    Sykuta
    Executive
    Director
    Illinois
    Petroleum
    Council
    400
    W. Monroe Street,
    Suite
    205
    Springfield,
    1L 62704
    217-544-7404
    TOTAL
    P.03

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