BEFORE THE ILLINOIS
    POLLUTION
    CONTROL BOARD
    IN THE MATTER OF:
    AMEREN
    ENERGY
    GENERAflNG
    CO.,
    )
    Petitioner,
    V.
    ILLINOIS ENVIRONMENTAL
    PROTECTION AGENCY
    Respondent.
    )
    )
    )
    EEVED
    CLER(<’S
    OFFICE
    SEP
    16
    20U9
    STATE
    OF
    ILLINOIS
    Pollution
    Control
    Board
    )
    PCBNo.09-38
    )
    (Thermal
    Demonstration-Water)
    )
    )
    )
    )
    NOTICE OF FILING
    To:
    John Therriault, Assistant Clerk
    Illinois Pollution Control Board
    James R. Thompson Center
    Suite 11-500
    100
    West Randolph
    Chicago, IL 60601
    Gabriel
    Rodriguez
    SCHIFF HARDTh1, LLP
    6600 Sears Tower
    233
    South Wacker Drive
    Chicago, IL 60606
    Amy Antoniolli
    SCHIFF HARDIN, LLP
    6600
    Sears Tower
    233
    South
    Wacker Drive
    Chicago,
    IL 60606
    David
    Loring
    SCHII’F HARD1N, LLP
    6600
    Sears Tower
    233 South Wacker Drive
    Chicago,
    IL 60606
    PLEASE TAKE NOTICE that I have today
    filed with the Office of the Clerk
    of the
    Illinois
    Pollution Control Board
    the
    POST-HEARING BRIEF OF THE ILLINOIS
    ENVIRONMENTAL PROTECTION AGENCY, a
    copy of which is herewith served
    upon
    you.
    ILLINOIS
    ENVIRONMENTAL PROTECTION
    AGENCY
    Dated:
    September 14, 2009
    Illinois
    Environmental Protection
    Agency
    1021
    North Grand Avenue East
    Post Office
    Box 19276
    Springfield,
    Illinois 62794-9276
    (217)
    782-5544
    By:
    Joey Log -Wil
    y
    Assistant
    Counsel
    Division
    of Legal Counsel
    THIS
    FILING PRINTED ON RECYCLED PAPER

    BEFORE THE ILLINOIS POLLUTION
    CONTROL
    BOARD
    IN THE MATTER OF:
    CLERIc’S
    OFFE
    AMEREN ENERGY
    GENERATING
    CO.,
    )
    SEP
    162009
    Petitioner,
    )
    POIItj
    STATE
    OF
    Control
    ILLiNOIS
    Board
    )
    v.
    )
    PCB No.
    09-3 8
    )
    (Thermal Demonstration-Water)
    ILLINOIS
    ENVIRONMENTAL
    )
    PROTECTION AGENCY
    )
    )
    Respondent.
    )
    POST-HEARING BRIEF
    OF THE ILLINOIS
    ENVIRONMENTAL PROTECTION
    AGENCY
    NOW
    COMES the Respondent, ILLINOIS
    ENVIRONMENTAL
    PROTECTION
    AGENCY, by and through Joey Logan-Wilkey, one of its
    attorneys, and submits its
    post-
    hearing brief to the Illinois Pollution Control Board
    (“Board”). The
    Agency recommends
    that the Board DENY Ameren’s petition because
    Arneren has failed
    to meet its burden of
    proof
    under 35 Iii. Adm. Code 106.200(a), and
    35 Ill. Adm. Code
    302.211(j).
    I. INTRODUCTION
    On December 15, 2008, Ameren filed a petition to
    modify the site specific
    thermal limits
    granted by the Board pursuant to 35 Ill.
    Adm. Code
    302.211(j)(5) on
    March 19,
    1982, which requires that the discharge
    from the
    Coffeen Power Station in
    Montgomery County
    to its artificial cooling
    lake known
    as Coffeen Lake
    shall not result
    in a
    temperature, measured at the outside edge
    of the mixing
    zone,
    that
    exceeds 105
    degrees
    Fahrenheit as a monthly average
    from June through
    September, and 112 degrees
    Fahrenheit as a maximum for more than three
    percent of the
    hours during that same

    period; and
    exceeds
    89
    degrees
    Fahrenheit
    as a monthly
    average
    from
    October
    through
    May,
    and
    94 degrees
    Fahrenheit
    as
    a
    maximum
    for more than
    two percent
    of the
    hours
    during
    that
    same period.
    These thermal
    limits
    were incorporated
    into Ameren’s
    NPDES
    Permit
    as Special
    Condition No.
    5.
    Ameren
    is
    proposing
    to modify
    the
    specific
    thermal
    standard
    for
    its discharge
    to
    Coffeen
    Lake
    to
    state
    that
    the thermal
    discharge
    shall
    not
    result in a
    temperature,
    measured
    at the
    outside
    edge
    of the
    mixing
    zone,
    which
    exceeds
    105
    degrees
    Fahrenheit
    as a
    monthly
    average,
    from
    June through
    September,
    and
    112
    degrees Fahrenheit
    as a
    maximum
    for
    more
    than three
    percent
    of
    the hours
    during that
    same
    period;
    exceeds
    89
    degrees
    Fahrenheit
    as a monthly
    average,
    from November
    through
    April,
    and 94
    degrees
    Fahrenheit
    as
    a
    maximum
    for more
    than
    two percent
    of the
    hours
    during
    that same
    period;
    and exceeds
    96 degrees
    Fahrenheit
    as
    a monthly
    average, in
    each
    of the
    months
    May
    and October,
    and 102
    degrees
    Fahrenheit
    as a maximum
    for more
    than two
    percent
    of
    the hours in
    each of those
    same months.
    The Illinois
    EPA
    filed
    its
    recommendation
    regarding
    Ameren’s
    petition
    on April
    24,
    2009,
    recommending
    that
    the Board
    deny Ameren’s
    petition
    to
    modify
    the
    thermal
    standard
    for Coffeen
    Lake. The
    Agency
    recommended
    that the
    Board deny
    the petition
    because
    Ameren
    had
    failed to
    meet its
    burden
    under
    Section 28.1(c)
    of the
    Act,
    415
    ILCS
    28.1 (2008),
    35
    Ill.
    Adm. Code
    106.200(a),
    and
    35
    Ill. Adm.
    Code
    302.211(j).
    Ameren
    has failed
    to
    demonstrate
    that
    the
    proposed
    modification
    is environmentally
    acceptable
    and
    within
    the intent
    of the Act,
    and
    has
    failed
    to demonstrate
    that the alternatives
    to the
    proposed
    modification
    to the
    thermal standard
    are
    technically
    infeasible
    and
    THIS
    FILING
    IS PRINTED
    ON RECYCLED
    PAPER

    economically
    unreasonable.
    The Board
    conducted
    the
    public hearing
    in
    this matter
    on
    June 23, 2009.
    Ameren
    filed its
    Post-Hearing
    Brief
    in this
    matter
    on
    August
    13,
    2009.
    II. ARGUMENT
    A.
    Ameren has
    failed
    to meet
    its
    burden
    of
    proof regarding
    the
    ability
    of Coffeen
    Lake
    to
    continue
    to be environmentally
    acceptable
    and
    within
    the
    intent
    of the Act
    under
    the proposed
    modification
    to the thermal
    limits.
    Ameren
    argues
    that
    it
    is not required
    to
    make a
    showing
    of no
    environmental
    impact,
    and that
    the
    existence
    of
    a
    fishery
    is not
    required.
    Section
    302.21
    1(j)(3)
    of the
    Board
    regulations
    provides
    the
    standard
    of
    review
    for artificial
    cooling
    lake
    demonstrations:
    “At an
    adjudicative
    hearing
    the
    discharger
    shall
    satisfactorily
    demonstrate
    to
    the Board
    that the artificial
    cooling
    lake
    receiving
    the
    heated effluent
    will
    be
    environmentally
    acceptable,
    and
    within
    the
    intent
    of
    the Act,
    including,
    but
    not limited
    to: (A)
    provision
    of
    conditions
    capable
    of
    supporting
    shellfish,
    fish
    and wildlife,
    and
    recreational
    uses
    consistent
    with
    good
    management
    practices,
    and
    (B)
    control of
    the
    thermal
    component
    of
    the discharger’s
    effluent
    by
    a technologically
    feasible
    and
    economically
    reasonable
    method.”
    35
    Iii.
    Adm.
    Code 302.211(j)(3).
    Ameren
    concedes
    that artificial
    cooling
    lakes
    must be
    capable
    of supporting
    a
    fishery,
    citing to
    the
    Board opinion
    In
    the
    Matter
    of: Water
    Quality
    and
    Effluent
    Standards
    Amendments,
    Cooling
    Lakes, R75-2
    slip
    op. at 25
    (Sept. 29,
    1975). In
    that
    opinion,
    the
    Board stated:
    “Generally
    formed
    by
    damming
    an existing
    watercourse
    which
    is itself a
    protected
    water
    of
    the state,
    such
    artificial
    cooling
    lakes
    remain
    subject
    to
    the
    Board’s
    water
    quality
    and effluent
    standards.”
    Cooling
    Lakes,
    R75-2,
    slip op. at
    4
    (Sept.
    29, 1975).
    3
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    Dr.
    James McLaren,
    in his hearing
    testimony on
    behalf
    of Ameren,
    states
    that
    SILT
    has reported
    the entrapment of fish
    in coves
    near
    the mixing zone, resulting
    in fish kills.
    Dr. McLaren
    stated
    that SIIJC,
    regarding the
    fish that have become
    entrapped and
    died,
    is
    “citing
    specifically within
    the discharge
    arm where they have
    taken refuge,
    but with
    a
    prolonged
    temperature
    increase, have for
    one
    reason
    or another, not vacated
    that water
    for temperatures
    in the lake better suited
    for
    their preference,
    their tolerance.
    So on one
    occasion,
    some limited
    numbers of fish
    have been
    killed.”
    Hearing
    transcript,
    p.
    131,
    lines
    4-11.
    When asked if
    SRJC “concluded
    that the cause
    of these entrapments
    was
    sudden
    temperature rise”
    Dr. McLaren
    stated “Yes, sudden and
    prolonged
    temperature
    rise.”
    Hearing transcript,
    p.
    133,
    lines
    2-6. Dr. McLaren also
    testified
    that
    he
    would
    agree
    that
    “at least
    some
    of the angling
    related fish mortalities
    were
    caused
    by—
    were
    in
    part caused by thermal
    stress.” Hearing
    transcript,
    p.
    134,
    lines 5-10. When
    asked
    whether he was aware
    if any states have
    used
    the concept
    of degree days
    in setting water
    quality standards,
    Dr. McLaren responded
    that
    he
    “would
    venture
    to say
    that that would
    be
    a
    misapplication
    of
    degree
    days.” Hearing
    transcript,
    p.
    135, lines 2-3.
    Dr.
    McLaren
    relied
    on the concept of degree
    days in
    the ASA report, the technical
    supporting
    document
    for the
    proposed
    standards, which would
    in effect
    be
    water quality standards
    for the Lake
    if adopted
    by
    the Board.
    With
    regard to the Upper Incipient
    Lethal
    Temperature (“UILT”)
    for
    fish, Dr.
    McLaren
    acknowledged
    that
    for largemouth bass
    the UILT is 97.3 degrees
    Fahrenheit,
    while
    the
    preferred
    temperature
    for that species
    is 79.7 to 89.6 degrees
    Fahrenheit.
    Hearing
    Transcript
    pp.
    153-154.
    Dr. McLaren
    acknowledged, in his
    hearing testimony,
    that the lethal
    end points “would likely
    be exceeded
    with the three species
    that
    we’re
    4
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    looking
    at
    by the
    maximum
    temperatures
    for
    May
    and October.”
    Hearing
    Transcript
    p.
    155,
    lines
    4-8.
    Ameren’s
    primary
    witness
    regarding
    impacts
    of
    the
    proposed
    temperatures
    on
    the
    fish
    stated
    that
    the lethal
    end
    points
    for
    largemouth
    bass,
    bluegill,
    and
    channel
    catfish
    would
    be
    exceeded
    by
    the proposed
    thermal
    standard
    for
    May
    and
    October.
    Temperatures
    that
    exceed
    lethal
    end points
    for three
    of
    the
    Lake’s
    RIS
    are
    not
    indicative
    of
    conditions
    that
    support
    fish,
    shellfish,
    and
    wildlife.
    Moreover,
    Dr.
    McLaren
    acknowledged
    that the
    three
    RIS
    studied
    are
    heat tolerant
    species.
    Hearing
    Transcript
    at
    p.
    154.
    So
    what
    does
    that
    mean
    for
    the
    other
    species
    of
    fish that
    exist
    in Coffeen
    Lake?
    Those
    species
    would
    likely
    show
    even greater
    negative
    impact
    from
    the
    proposed
    standards
    if
    studied.
    For
    example,
    Dr. McLaren
    stated
    that
    white
    crappie,
    another
    species
    that
    lives
    in
    the Lake,
    is
    less
    heat tolerant
    than
    the
    RIS.
    Hearing
    Transcript,
    p.
    154.
    When
    questioned
    about
    the three
    RIS
    cited
    in
    IDNR’s
    Lake
    Management
    Status
    Report
    for
    2007
    (“Report”),
    Dr.
    McLaren
    acknowledged
    that
    the
    Report
    states
    that
    relative
    weight
    for
    bluegill
    was
    only
    82-89,
    while
    the
    Lake
    Management
    Goal
    was
    90-
    110,
    and that
    the
    relative
    weight
    for
    catfish
    was
    only
    89.
    Hearing
    Transcript,
    p.
    172-177.
    When
    asked
    what
    IDNR
    meant
    by
    stating
    in the
    Report
    that
    the
    channel
    catfish
    “population
    continues
    in anguish”
    Dr.
    McLaren
    stated
    “I
    have
    no idea.”
    Hearing
    transcript,
    p.
    177.
    If
    the RIS
    in
    the Lake
    are “in
    anguish”
    under
    the
    current
    thermal
    regime,
    what
    effect
    will
    the
    proposed
    temperature
    increase
    have
    on
    those
    populations?
    The
    Board
    established
    the
    burden
    of
    proof
    for
    artificial
    cooling
    lakes,
    that
    they
    must
    be
    environmentally
    acceptable
    and
    within
    the
    intent
    of
    the Act.
    Ameren
    claims
    this
    burden
    is
    very
    easy
    to meet.
    They
    claim
    that
    the
    Board’s
    opinion
    in
    R75-2
    supports
    their
    view
    that
    the
    fishery
    need
    not
    be optimal.
    In
    R75-2,
    the
    Board
    considered
    whether
    there
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    was
    “any
    degradation
    of
    water quality”
    in
    the
    artificial cooling
    lake
    that could
    be
    attributable
    to
    the power
    plant’s
    thermal effluent,
    including
    lake
    levels
    of phosphorus,
    mercury,
    and dissolved
    oxygen.
    Slip
    op.
    at 16.
    The Board
    used
    Lake
    Sangchris
    as an
    example
    of an
    artificial
    cooling
    lake
    that
    did not
    exhibit
    a
    degradation
    of water
    quality,
    specifically
    stating
    that the
    lake had
    low levels
    of phosphorus,
    and
    mercury levels
    were
    “rarely
    at the detectable
    limit.”
    Id.
    The Agency
    has presented
    evidence
    that
    Coffeen
    Lake
    is currently
    out of compliance
    with mercury
    and phosphorus
    water quality
    standards
    and
    that
    increased
    thermal
    loading
    may
    exacerbate
    those
    violations.
    Coffeen
    Lake
    is currently
    on the
    Aency’s
    303(d)
    list
    of
    impaired
    waters
    for its
    phosphorus
    levels.
    Ameren’s
    witness,
    Dr.
    Ann
    Shortelle,
    testified
    at
    hearing
    that the
    proposed
    modification
    may
    cause
    an
    increase
    in the Lake’s
    phosphorus
    level.
    When
    asked
    whether the
    proposed
    increased
    thermal
    standards
    for
    May
    and
    October
    would
    result
    in
    an increase
    in the
    phosphorus
    in the
    Lake, Dr.
    Shortelle stated:
    “The
    blue
    bar
    graph,
    but the specific
    numbers using
    those
    two
    flux rates
    was
    an
    additional
    - - in
    round
    numbers,
    48 kilograms
    of
    phosphorus
    per
    year
    to
    96 kilograms
    of
    phosphorus
    per year.”
    Hearing
    Transcript
    p.
    225,
    lines 19-23.
    Dr.
    Shortelle
    also
    testified
    that
    the
    use
    of
    different
    flux
    rates account
    for the differing
    calculations
    of
    the
    internal
    loading
    of
    phosphorus
    in the Lake.
    The evidence
    presented
    at
    hearing
    showing that
    phosphorus
    will
    increase under
    the
    proposed
    temperatures
    demonstrates
    that
    the proposed
    thermal
    standard is
    not environmentally
    acceptable
    and within
    the intent
    of
    the
    Act. Dr. Shortelle
    also
    testified
    that increasing
    lake
    temperature
    may
    also increase
    the methylation
    of
    mercury in
    the Lake.
    This
    is
    further
    evidence
    that the
    proposed
    modification
    to the
    thermal
    standard
    is not
    environmentally
    acceptable
    and
    within
    the
    intent
    of the Act.
    6
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    The
    Board
    in
    75-2 also
    discussed
    dissolved
    oxygen
    in artificial
    cooling
    lakes
    when
    assessing
    the
    impact
    of thermal
    effluent
    on
    water
    quality.
    The proposed
    modification
    to
    the
    Lake’s thermal
    standard
    may
    also
    result
    in
    violations
    of the
    Dissolved
    Oxygen
    water
    quality
    standards of
    35 Iii.
    Adm. Code
    302.206.
    The evidence
    presented
    at
    hearing
    shows
    that an
    increase in
    temperature
    in
    May
    and
    October
    will
    increase the
    number
    of
    anoxic
    days. Dr.
    Shortelle
    testified
    that the
    increased
    temperatures
    in
    May and October
    would
    increase
    the number
    of anoxic
    days
    from
    18 to
    23
    days
    in
    segment
    1 and
    17 to 25
    days
    in
    segment
    2
    in May,
    and
    an increase
    in segment
    1 from
    1 to 13 days
    and in
    segment
    2
    from 1 to
    11 days in
    October.
    Hearing Transcript
    p.
    228
    lines 19-25,
    p.
    229
    lines
    1-5.
    During
    the hearing,
    Mr.
    James Williams,
    manager
    of
    the Coffeen
    Power
    Station,
    testified
    that
    Ameren
    does
    not
    monitor
    the temperature
    of the discharge
    from
    the Lake
    to
    the stream.
    The
    regulations
    require
    that
    any
    discharge
    from the Lake
    to the
    stream
    must
    meet
    the thermal
    standards.
    The
    Board regulations
    at 35
    Iii.
    Adm.
    Code
    302.21 1(j)(1)
    state
    that “All
    discharges
    from
    the
    artificial
    cooling lake
    to other
    waters
    of the State
    comply
    with
    the
    applicable
    provisions
    of subsections
    (b) through
    (e)” of
    35 111. Adm.
    Code
    302.2
    11. In
    addition
    to the
    numeric limits
    in subsection
    (e), overflows
    from
    Coffeen
    Lake
    must
    also comply
    with
    the
    following
    requirements
    of
    the
    Board
    regulations:
    there
    shall be
    no abnormal
    temperature
    changes
    that may
    adversely
    affect
    aquatic
    life
    unless
    caused
    by
    natural
    conditions,
    35 Iii.
    Adm.
    Code
    302.211(b);
    the
    normal
    daily
    and
    seasonal
    temperature
    fluctuations
    which
    existed
    before
    the addition
    of
    heat due
    to
    other than natural
    causes
    shall
    be
    maintained,
    35 Ill. Adm.
    Code 302.211(c);
    and the
    maximum
    temperature
    rise above
    natural temperatures
    shall
    not exceed
    2.8°C
    (50
    F),
    35111.
    Adm.
    Code 302.211(d).
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    If relief is
    granted to Ameren,
    the Board order
    must specify the requirements
    applicable
    to Ameren
    and how
    compliance with these
    conditions
    will
    be met.
    In
    the
    current relief,
    simply requiring
    compliance
    with applicable provisions
    of 35 Iii.
    Adm.
    Code 302.211(b)
    through
    (e) has not
    been sufficient
    to assure
    compliance
    because
    Ameren
    is not required
    to monitor
    discharges
    from
    Coffeen Lake. Under
    Section
    302.21 1(j)(2) of the
    Board regulations,
    35 Ill. Adm.
    Code 302.21 1(j)(2),
    Ameren
    must
    demonstrate
    that thermal
    relief will
    not result
    in
    violations of other water
    quality
    standards
    in Subtitle
    C of
    the
    Board’s
    regulations. Failure
    to do so requires
    denial of the
    artificial
    cooling lake
    demonstration.
    B. Ameren
    has failed to demonstrate
    that there
    are no
    technically
    Feasible
    and
    economically
    reasonable alternative
    treatment
    technologies.
    Section 302.211(j)(3)(B)
    of the Board regulations,
    35 Ill.
    Adm. Code
    302.211
    (j)(3)(B),
    states “At an adjudicative
    hearing
    the discharger
    shall satisfactorily
    demonstrate to the
    Board that the
    artificial cooling lake
    receiving the
    heated effluent will
    be environmentally
    acceptable, and
    within the intent
    of the Act,
    including, but not limited
    to
    ... (B) control
    of the thermal component
    of
    the discharger’s
    effluent
    by a
    technologically
    feasible and
    economically
    reasonable
    method.” There is
    no dispute about
    the alternative
    technically
    feasible methods
    of control in this
    case.
    Derating
    and cooling
    towers are
    both currently
    utilized and could
    be expanded.
    During the
    hearing,
    Ameren presented evidence
    that
    the alternative
    treatment
    technologies
    are not economically
    reasonable,
    and continues
    to
    make that
    argument in
    its
    Brief.
    Ameren is arguing
    that investments
    in supplemental
    cooling must
    pay for
    themselves over
    the
    lifetime
    of the equipment
    in order to be
    considered
    economically
    reasonable.
    Ameren’s
    definition
    of economic
    reasonableness
    in this
    context
    is
    whether
    or
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    not a
    thennal
    technology
    will
    allow
    Ameren
    to generate
    enough
    additional
    power
    so
    as to
    see
    an actual
    profit
    on the
    investment
    in
    the supplemental
    cooling
    capacity.
    Acceptance
    of Ameren’s
    economic
    reasonableness
    argument
    in this
    case
    would
    jeopardize
    the
    basis
    of most
    regulatory
    decisions
    that
    require
    a consideration
    of
    economic
    reasonableness.
    It
    will
    be a
    very
    rare
    case
    where
    environmental
    controls
    result
    in
    a
    profit
    to
    the regulated
    entity.
    Petitioner
    states
    “Ameren
    has
    already
    made
    substantial
    investments
    in
    cooling
    technologies
    to
    control
    the Station’s
    thermal
    effluent
    to
    Coffeen
    Lake.
    Ameren
    has
    spent
    $26
    million
    on
    the construction
    of a
    70-acre
    cooling
    basin
    and
    a
    48-cell,
    200,000
    gallon
    per minute
    (gpm)
    cooling
    tower
    system.”
    Petitioner’s
    Brief
    at 2.
    Contrary
    to
    these
    statements,
    testimony
    at
    the
    hearing
    and a
    review
    of
    the Record
    makes
    clear
    that
    these
    investments were
    undertaken
    to increase
    profits
    at the
    Coffeen
    Station,
    not
    to improve
    environmental
    conditions
    in
    Coffeen
    Lake
    or to
    increase
    compliance
    with
    thermal
    limits.
    These
    improvements
    were
    undertaken
    after Ameren
    came
    to this
    Board
    requesting
    regulatory
    relief
    in PCB
    97-131,
    making
    the following
    argument:
    “CIPS
    evaluated
    the
    thermal
    performance
    of
    Coffeen
    Lake
    and various
    alternatives
    that
    would
    allow
    for
    higher
    generation
    levels.
    (Am.
    Pet.
    at 8.)
    Four
    cooling
    tower
    options
    were
    reviewed
    after
    the
    evaluation.
    (Am.
    Pet.
    at
    8.)
    However,
    due
    to high
    initial
    capital
    costs
    and
    ongoing
    operating
    and maintenance
    expenses,
    all
    of
    the
    alternatives
    were
    rejected.
    (Am.
    Pet.
    at
    8.)
    CIPS
    believes
    that
    these
    costs
    were
    not
    practical
    considering
    the
    infrequent
    and
    unpredictable
    nature
    of when
    they would
    be
    needed.
    (Am.
    Pet. at
    9.)”
    PCB
    97-131
    (June
    5, 1997)
    at
    3.
    After
    arguing
    that
    the
    installation
    of
    supplemental
    cooling
    would
    cause
    economical
    hardship
    and being
    granted
    relief
    from
    the Board
    based
    on
    that
    hardship,
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    Arneren chose
    to install
    supplemental
    cooling
    technologies
    to allow for increased
    energy
    production.
    As
    Mr. Williams
    testified
    for
    Ameren
    in the hearing
    in
    this
    proceeding
    on June
    23, 2009:
    “And
    initially
    when
    we did the EVA [Economic
    Value
    Added],
    it did
    show 11
    Vz
    year
    payback, which
    meant I can invest
    the
    18 million,
    and in 11
    ‘/2
    years, it would pay back
    on a capital
    a
    piece
    of
    equipment
    that would
    typically have a
    15-year
    capital
    life.
    Since
    then,
    as I mentioned,
    we are in a deregulated
    environment.
    And
    we annually
    review all of our
    capital
    projects.
    And in this EVA
    model,
    it
    does show our forward
    price curves,
    as
    well as any additional
    environmental
    projects we
    may have.
    And
    when
    we reran
    the analysis,
    it does come back that
    it is a negative
    $2.7
    million.
    So it is not economically
    viable.”
    Hearing
    Transcript
    at Page 16 at lines
    7-19.
    When both
    the Board and the
    Agency attempted
    to clarify this
    point, Mr. Williams
    gave
    the
    same
    explanation:
    “Q
    (Ms. Liu) “But
    to
    put it into
    context,
    you threw
    out the
    number negative
    2.7
    million.
    That means it’s
    not
    economically viable.
    At zero,
    does it become
    economically
    viable,
    or does
    it
    have to be
    a positive number?”
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    A
    (Mr.
    Williams)
    “I’d have
    to review
    that, but you’d
    want
    it
    to be
    a
    payback
    period
    before
    you’d
    make
    an investment
    and
    lose
    $2.7
    million
    through
    the
    life
    of
    a cooling
    tower is
    what
    that analysis
    would
    show. Before
    the life
    of
    that
    cooling
    tower,
    I’d have
    to — I’d
    lose
    money
    there, and
    plus
    the
    cooling
    tower would
    be
    at the
    end
    of
    its
    life.
    You’d
    make — that’s
    what the
    analysis
    would
    take into
    account,
    the full life
    expectancy
    of
    the cooling
    towers.
    So,
    yes,
    that’s correct.”
    Hearing
    Transcript
    at Page
    74, Lines
    5-20.
    “Q
    (Ms.
    Williams)
    Just
    to follow
    up on the
    Board’s
    question.
    Do
    you
    believe
    that’s
    the
    economic
    reasonableness
    test
    that the
    Board
    should
    consider
    whether or
    not
    Ameren
    can
    make a profit
    off
    the installation
    of the
    treatment
    technology?
    A
    (Mr.
    Williams)
    No, I
    don’t
    believe
    the profit.
    It needs
    to be
    a
    payback to
    be economically
    viable.
    Q
    So it
    needs to be
    zero
    before
    it’s
    considered
    economically
    reasonable
    by
    the Board?
    A
    Yes,
    and
    it would
    be considered,
    correct.”
    Page
    74 Line
    22 through
    Page
    75, Line
    7.
    The
    installation
    of additional
    cooling
    systems
    and de-rating
    are technically
    feasible
    and
    economically
    reasonable
    alternatives
    treatments
    available to
    Ameren.
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    Ameren has failed to
    demonstrate a
    lack of
    alternative
    treatments that are
    technically feasible and
    economically
    reasonable.
    C. Ameren has failed to
    make a 316(a) demonstration
    that is consistent with
    Federal Law.
    1.
    State Law
    Section
    302.211(j)
    of the Board regulations, 35 Ill. Adm.
    Code 302.211(j), sets
    forth the requirements for an
    artificial cooling lake demonstration,
    allowing exceptions
    from the
    temperature
    water quality
    standards when all of the conditions
    provided have
    been met.
    Failure
    to comply with any
    of
    these
    will require the Board
    to deny the relief
    requested. Section
    302.21 1(j)(4)
    states that the “required showing
    in subsection (j)(3)
    may take the form of an acceptable
    final
    environmental
    impact statement
    or pertinent
    provisions of environmental
    assessments used in the preparation
    of the final
    environmental impact statement,
    or may take the form of showing
    pursuant to Section
    3 16(a)
    of
    the Clean Water
    Act (CWA) (33
    U.S.C.
    1251 et
    seq.), which addresses the
    requirements of(j)(3).” 35111.
    Adm. Code 302.211(j)(4).
    Ameren argues that the list
    of
    formats
    for the artificial cooling
    lake
    demonstration
    are
    illustrative
    only and not mandatory and cites to the Board
    Opinion in R75-2. The
    Board likely did intend to provide some flexibility
    and did not
    intend
    to require the
    submittal of a 316(a) demonstration
    by
    the Petitioner
    in all cases. The
    Board still must
    address whether Ameren has included all
    of the information that
    is
    needed
    to make its
    decision.
    The
    relief requested must
    take the form of a water quality
    standard change
    that
    requires federal approval under Section
    303(c) of the Clean Water Act.
    Ameren correctly
    points
    out the uniqueness of the Clean Water Act’s treatment
    of heat as a pollutant.
    This
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    is
    true
    under
    State
    law
    as well.
    Not
    only
    must Ameren
    comply
    with
    the
    requirements
    of
    State law,
    but
    the Board
    should
    ensure consistency
    of the
    interpretation
    of
    State law and
    the
    Clean
    Water Act.
    2. Federal
    Law
    Section
    3
    16(a)
    of the Clean
    Water
    Act
    states:
    “With respect
    to any
    point source
    otherwise
    subject
    to the
    provisions
    of section
    1311
    of this title
    or section
    13 16
    of
    this
    title,
    whenever
    the owner
    or operator
    of
    any
    such
    source,
    after
    opportunity
    for
    public
    hearing,
    can
    demonstrate
    to the satisfaction
    of
    the Administrator
    (or,
    if appropriate,
    the
    State)
    that
    any
    effluent
    limitation
    proposed
    for the
    control
    of the
    thermal
    component
    of
    any discharge
    from
    such source
    will
    require
    effluent
    limitations
    more
    stringent
    than
    necessary
    to
    assure
    the projection
    and propagation
    of a balanced,
    indigenous
    population
    of shellfish,
    fish,
    and wildlife
    in and
    on the body
    of water
    into which
    the discharge
    is
    to
    be
    made,
    the
    Administrator
    (or, if appropriate,
    the
    State)
    may impose
    an effluent
    limitation
    under
    such sections
    for
    such
    plant,
    with respect
    to the
    thermal component
    of
    such discharge
    (taking
    into
    account
    the interaction
    of
    such thermal
    component
    with
    other
    pollutants),
    that
    will assure
    the
    protection
    and propagation
    of
    a
    balanced, indigenous
    population
    of
    shellfish, fish,
    and wildlife
    in
    and
    on that
    body
    of
    water.” 33
    U.S.C.
    §
    1326.
    Section
    3
    03(c) of
    the Clean
    Water
    Act
    states
    as follows:
    “Whenever
    the State
    revises
    or
    adopts
    a new standard,
    such
    revised
    or new
    standard
    shall
    be submitted
    to the
    Administrator.
    Such
    revised
    or
    new
    water
    quality standard
    shall consist
    of the designated
    uses
    of
    the
    navigable
    waters involved
    and
    the water
    quality
    criteria for
    such
    waters
    based
    upon
    such uses...”
    33
    U.S.C.
    §1313(c)(2)(A).
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    In addition
    to a site
    specific
    thermal
    limit,
    federal
    law
    would
    also permit a water
    quality
    standard change
    to take the
    form of a change
    in use designation
    through
    a use
    attainability analysis.
    In
    its Petition,
    Ameren
    cites to
    Section 28.1 of
    the Environmental
    Protection Act
    as a basis
    of its Petition
    but does
    not
    mention the
    Adjusted Standard
    provisions from
    that
    Section
    of the Environmental
    Protection
    Act in
    its post-hearing brief.
    Instead,
    Ameren
    simply
    cites to the Board’s
    thermal
    regulations
    for artificial cooling lake
    demonstrations
    in 35 Ill.
    Adm. Code
    302.211(j) and
    the procedural requirements
    in 35
    Ill. Adm. Code
    106.200
    et al [sic].
    Petitioner’s
    Post-Hearing
    Brief also
    states that Ameren
    “requests a
    modification
    to
    the
    thermal
    limits
    granted by the Board
    in 1982 for the
    cooling water
    discharge
    from Coffeen
    Power
    Station
    (‘Station’) to
    Coffeen Lake.”
    Brief at 1.
    In
    1997,
    when Ameren last came
    to
    the Board
    for relief
    from the May and October
    thermal
    limits,
    it utilized a Variance
    proceeding
    for
    temporary
    relief.
    See PCB
    97-13 1.
    However,
    Ameren stated that it
    would
    Petition
    the Board
    for a site-specific rulemaking
    after
    three
    years. PCB 97-13 1, slip
    op.
    at
    page
    3.
    Ameren
    is
    vague
    in identifying
    the provision in the
    Environmental
    Protection
    Act
    that would
    serve
    as the
    basis for the requested
    relief. While
    the initial
    Board regulation
    in R75-2
    required
    Artificial
    Cooling Lake demonstrations
    to be made in a regulatory
    proceeding,
    this was
    later changed
    to an adjudicatory
    proceeding
    but was addressed
    independently
    in the procedural
    rules from
    other types
    of
    adjudicatory proceedings.
    The
    Board cannot
    generally
    grant an
    alternative
    effluent limit where
    that
    effluent
    limit will
    result in the water
    quality standard
    being
    violated
    without creating
    inconsistencies with
    federal law.
    Alternative
    effluent
    limits
    including those that
    grant
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    relief from the
    prohibition
    against
    causing
    a violation of
    water quality standards
    (i.e., 35
    Ill. Adm.
    Code
    304.105)
    must
    also be treated as a water
    quality
    standard
    change
    in order
    to be
    consistent
    with
    the
    Clean Water Act.
    See,
    In the Matter
    of: Site
    Specific Rule for
    City
    of Effingham Treatment
    Plant
    Fluoride Discharge,
    35 Ill. Adm.
    Code
    304.233,
    R03-
    11, First
    Notice
    Opinion
    (July
    24,
    2003).
    The Board
    regulation
    requiring that the
    showing take
    the form
    of
    a 316(a)
    demonstration
    is designed
    to make the
    Artificial Cooling Lake
    demonstration
    approvable
    as a 3
    16(a) demonstration
    by
    U.S. EPA,
    permitting it be to included
    in the
    NPDES
    permit.
    Consistent with Section
    303(c)
    of the Clean Water
    Act, an Artificial
    Cooling
    Lake
    demonstration is a
    regulatory relief
    mechanism
    (like an adjusted
    standard or site-
    specific
    rulemaking)
    that results in a
    water quality standard
    change
    that
    must be
    submitted to
    U.S.
    EPA
    for approval.
    Absent
    a change in the
    use designation,
    Ameren must
    show that the site-specific
    water quality
    standard requested
    will be protective
    of aquatic
    life
    as designated
    by the
    General Use
    standard. Ameren
    has not
    suggested
    that this
    is a change in use designation.
    Ameren
    must
    show aquatic life
    that live
    in
    Coffeen Lake will
    be protected by
    the relief.
    Testimony
    on
    thermal
    impacts
    and impacts of the
    thermal effluent
    on other parameters
    shows this
    is
    not the
    case.
    Because
    the Agency believes
    Ameren
    has not made
    a sufficient showing
    to gain
    federal
    approval
    of the relief requested
    as a
    water quality
    standard change,
    the
    documentation
    submitted
    with this Petition
    is not
    sufficient.
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    III. CONCLUSION
    Pursuant
    to 35
    Ill. Adm.
    Code
    106.200(a),
    and
    35
    Ill.
    Adm.
    Code 302.211(j),
    the
    Illinois
    EPA recommends
    that
    the
    Board
    DENY Ameren’s
    request
    to
    modify
    the thermal
    standard
    for Coffeen
    Lake.
    Ameren
    has
    failed
    to meet its
    burden
    under
    the
    Act
    and
    Board
    regulations.
    Ameren
    has
    failed
    to
    prove
    that
    the proposed
    standards
    will
    be
    environmentally
    acceptable
    and
    within the
    intent
    of
    the
    Act.
    Further,
    Ameren
    has failed
    to
    show
    that
    the
    available
    treatment
    alternatives
    are not economically
    reasonable
    and
    technically
    feasible.
    The
    installation
    of
    additional
    cooling
    technologies
    and de-rating
    are
    available
    treatment
    alternatives
    that
    are
    technically
    feasible
    and economically
    reasonable.
    WHEREFORE,
    for the reasons
    stated
    herein, the
    Illinois EPA
    recommends
    that
    the Board
    DENY
    Ameren’s
    Petition.
    Respectfully
    submitted,
    ILLINOIS
    ENVIRONMENTAL
    PROTECTION
    AGENCY
    By:
    1
    ’c
    —j
    Joey
    Logan-Wilkey
    Assistant
    Counsel
    Division
    of Legal
    Counsel
    Dated:
    September
    14, 2009
    Illinois
    Environmental
    Protection
    Agency
    1021
    North Grand
    Avenue
    East
    Post
    Office
    Box
    19276
    Springfield,
    Illinois
    62794-9276
    (217)
    782-5544
    16
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    CERTIFICATE
    OF
    SERVICE
    I,
    Joey
    Logan-Wilkey,
    certify
    that
    I
    have
    served
    the
    attached
    POST-HEARING
    BRIEF
    OF
    THE
    ILLINOIS
    ENVIRONMENTAL
    PROTECTION
    AGENCY,
    by first
    class
    mail,
    upon
    the
    following persons:
    John
    Theirrault,
    Clerk
    Illinois
    Pollution
    Control
    Board
    James
    R.
    Thompson
    Center
    100
    W.
    Randolph,
    Suite
    11-500
    Chicago,
    Illinois
    60601
    Gabriel
    Rodriguez
    SCHIFF
    HARDIN,
    LLP
    6600
    Sears
    Tower
    233
    South
    Wacker
    Drive
    Chicago,
    IL
    60606
    Carol
    Webb,
    Hearing
    Officer
    Illinois
    Pollution
    Control
    Board
    1021
    North
    Grand
    Ave.
    East
    P.O.
    Box
    19276
    Springfield,
    IL 62794-9276
    Dated:
    September
    14,
    2009
    Amy
    Antoniolli
    SCHIFF
    HARD1N,
    LLP
    6600
    Sears
    Tower
    233
    South
    Wacker
    Chicago,
    Illinois
    60606
    David
    Loring
    SCHIFF
    HARD1N,
    LLP
    6600
    Sears
    Tower
    233
    South
    Wacker
    Drive
    Chicago,
    IL
    60606
    Joey
    Assistant
    Counsel
    Division
    of
    Legal
    Counsel
    Illinois
    Environmental
    Protection
    Agency

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