ILLINOIS
    a
    CHAMBER
    August 10, 2009
    OOMMERCE
    LERKS
    OFFICE
    AUG
    i
    Mr. Timothy
    Fox, Hearing
    Officer
    ‘ 2009
    215
    F.
    Adams
    Illinois Pollution
    Control
    Board
    STATE
    OF
    ILLIN
    Springfiald.
    1L62701
    James R.
    Thompson Center
    Oluton
    Control
    8o
    100 W.
    Randolph
    Suite
    11-500
    www.iIchambar.org
    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:
    I am
    writing
    on behalf of The
    Illinois Chamber
    of Commerce
    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”). 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.
    6.
    We
    understand
    that
    NOx
    allowances
    could
    potentially
    be
    obtained
    through
    the
    purchase
    of
    Clean
    Air
    Interstate
    Rule
    (“CAIIV’)
    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.
    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
    Chamber
    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,
    By:
    /DdI
    C
    Todd
    Maisch
    Vice
    President
    Government
    Affairs
    Illinois
    Chamber
    of
    Commerce
    215
    B.
    Adams
    Springfield,
    IL
    62701
    (217)
    522-5512

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