## ILLINOIS ENVIRONMENTAL PROTECTION AGENCY

1021 NORTH GRAND AVENUE EAST, P.O. Box 19276, SPRINGFIELD, ILLINOIS 62794-9276 • (217)782-2829 PAT QUINN, GOVERNOR LISA BONNETI, DIRECTOR 217/782-3397 217/782-9143 (TDD) January 09, 2014

Susan Hedman, Regional Administrator Office ofthe Regional Administrator, R-19J U.S. Environmental ProtectionAgency, Region 5 77 West Jackson Boulevard Chicago, Illinois 60604-3507 CERTIFIED MAIL # RETURN RECEIPT REQUESTED

Re: R2010-21: Inthe Matterof: 10-YearFederallyEnforceable State Operating Permits (FESOP) Amendments to 35 Ill. Adm. Code Section 201.162(a) Dear Ms. Hedman: The Illinois Environmental Protection Agency (Illinois EPA), onbehalfofthe State ofIllinois, hereby submits the enclosed amendments, as described below, to Illinois' StateImplementation Plan (SIP) pursuant to Section 110 ofthe CleanAir Act (CAA) (42 U.S.C. § 7410). This submittal is the result ofamendments to the Illinois Administrative Code allowing the Illinois EPAto grant Federally Enforceable State Operating Permits for up to 10 years, specifically Section 201.162(a). This amendment is applicable statewide. On April 20, 2010, the Illinois EPA filed a regulatoryproposal entitled: Inthe Matter of: 10- Year Federally Enforceable State Operating Pennits (FESOPs) Amendments to 35 Ill. Adm. Code Section 201.162(a) with the Office ofthe Clerk ofthe Pollution Control Board (Board). The Board docketed this proposed rulemaking as R2010-021, and issued a First Notice Opinion and Order onJune 17, 2010. On July 2, 2010, a Notice ofProposed Amendments was published in the Illinois Register (34 Ill. Reg. 8508). The Board issued a Notice ofHearing onJune 9, 2010, and caused notices ofhearing to bepublished in various newspapers. Public hearings were held onJuly 8 and 21, 2010. No public comments were received. The Board issued its Final Opinion and Order onNovember 18, 2010. The adopted amendments were effective December 1, 2010. Notice ofthe adopted amendments was published inthe Illinois Register onDecember 17, 2010, (34 Ill. Reg. 19575). The complete docket for therulemaking is available onthe Board's website at http://www.ipcb.state.il.us/coollextemal/CaseView.aspx?referer=results&case=l3865. The Illinois EPA then had a separate Notice ofSIP Submittalpublished in theIllinois Register on June 14, 2013. Onepublic comment was received on July 1, 2013. Copies ofthe public notice, comment and Illinois EPA's Response are attached.

4302**~l.** Main St., Rockford, IL 61103 (815) 987-7760 595 S. State, Elgin, IL 60123 (847) 608-31 31 2125 S. First St., Champaign, IL 61820 (217) 278-5800 2009 Mall St., Collinsville, IL 62234 (618) 346-51 20 9511 Harrison St., Des Plaines, IL 60016 (847) 294-4000 5407 N. University St., Arbor 113, Peoria, IL 61614 (309) 693-5462 2309 W. Main St., Suite 116, Marion, IL 62959 (618) 993-7200 100 W. Randolph, Suite 10-300, Chicago, IL 60601 (312) 814-6026 PLEASE PRINT ON RECYCLED PAPERIn orderto assist with your review ofthis SIP submittal, one paper copy ofthe following documents is enclosed, including an electronic disk that contains exact duplicates ofthe paper copies: Attachment 1: Agency Rulemaking Proposal filed April20, 2010 Attachment 2: Hearing Officer Order dated June 9, 2010 Attachment 3: Proposed Rule, First Notice, Opinion and Order ofBoardby C.K. Zalewski, dated June 17, 2010 Attachment 4: Notice ofProposed Rulemaking, Illinois Registerpublication, letter dated June 24, 2010, pub. at 34 Ill. Reg. 8508, July 2, 2010 Attachment 5: Pre-filed Testimony ofBob Bernoteit dated June 29, 2010 Attachment 6: Record ofHearing held onJuly 8, 2010. This Record ofHearing references an Exhibit- the Agency's Proposal and the Pre-filed Testimony ofBob Bernoteit, exact duplicates ofwhich are contained in Attachments 1 and 5 Attachment 7: Record ofHearing held onJuly 21, 2010 Attachment 8: Proposed Rule, Second Notice, Opinion and Order ofthe Board byC.K. Zalewski, dated October 7, 2010 Attachment 9: Joint Committee onAdministrative Rules Certification ofNo Objection and Second Notice Changes, dated November 16, 2010 Attachment 10: Final Adopted Rule, Opinion and Order oftheBoardby C.K. Zalewski, dated November 18, 2010 Attachment 11: Notice ofAdopted Amendments, Illinois Register, 34 Ill. Reg. 19575, December 13, 2010 Attachment 12: Notice ofSIP Submittal, Illinois Register, 37 Ill. Reg. 8049, June 14, 2013 Attachment 13: Public Comment directed to Dean Studer, Hearing Officer, Illinois EPA, from Keith Harley, Chicago Legal Clinic, dated July 1, 2013 Attachment 14: Illinois EPA's Response to Public Comment for SIP Submittal oflO-year FESOP Amendment This amendment to the State ofIllinois' SIP will not interfere with any applicable requirement concerning attainment, reasonable further progress, or any other applicable CAA requirement. Therefore, approval ofthis amendment will be consistent with Section 110(1) ofthe CAA (42 U.S.C. § 7410(1)).By signing below, I certifY that applicable State requirements pertaining to public notice and hearings were followed, public hearings were held in accordance with the public notices, and the applicable requirements of40 C.F.R. 51.102 were met. Also, by signing below, I certifY that the electronic disk enclosed herewith is an exact duplicate ofthe paper copies. Iffurther information is required or should you have any questions, please feel free to contact Robert Bemoteit ofmy staffat 217/524-0865.

# ::/~**~~iett** Director

Attachments

### Bee: Bob Bemoteit

- Letter Brenda Jones- Letter David Bloomberg- Letter and Attachments Rachel Doctors

- Letter Shannon Bilbruck- Letter and Attachments

# Attachment
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BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

INTHEMATTEROF: ) ) 10-YRFEDERALLY ENFORCEABLE ) STATE OPERATING PERMITS ) ("FESOP"): AMENDMENTS TO ) 35 ILLADM. CODE PART 201.162 ) R10- (Rulemaking- Air)

NOTICE TO: Dorothy Gunn, Clerk lllinois Pollution Control Board State oflllinois Center 100 WestRandolph, Suite 11-500 Chicago, lllinois 60601 Virginia Yang DeputyLegal Counsel Illinois Dept. ofNatural Resources 524 South Second Street Springfield, Illinois 62701-1787 MatthewDunn, Chief Attorney General's Office James R. Thompson Center 100 WestRandolph, 12th Floor Chicago, Illinois 60601

PLEASE TAKENOTICE that I have today filed with the Office ofthePollution Control Board the REGULATORYPROPOSALFOR 10-YRFEDERALLY ENFORCEABLE STATE OPERATINGPERMITS ("FESOP") ofthe lllinois Environmental Protection Agency a copy ofwhich is herewith served upon you.

DATED: April 20, 2010 P.O. Box 19276 Springfield, Illinois 62794-9276 217/782-5544 ILLINOIS ENVIRONMENTAL PROTECTIONAGENCY By: /s/ Rachel L. Doctors Assistant Counsel Division ofLegal CounselCICvLIUIIIv IIIIII!::J- f'\CvCIVCU, \..IICI"'> VlllvC, /""\!Jill t:..U, t:..U IU 

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BEFORE THE ILLINOIS POLLUTION CONTROL BOARD IN THE MATTER OF: ) ) 10-YRFEDERALLY ENFORCEABLE ) STATE OPERATINGPERMITS ) ("FESOP"): AMENDMENTS TO ) 35 ILL ADM. CODEPART 201.162 ) R10- (Rulemaking- Air)

TABLE OF CONTENTS OFREGULATORY SUBMITTAL Fallowingis a Table ofContents ofall pleadings and documents included with the proposed regulatory action: 1. Notice ofProposal 2. Appearance ofRachel L. Doctors, Assistant Counsel, for the lllinois Environmental Protection Agency 3. Director Douglas Scott'sProposal ofAmendments 4. Economic and Budgetary Analysis 6. Statement ofReasons A. Attachment "A"- Sic Codes B. Attachment "B" -Outreach C. USEPA's "Approval and Promulgation ofAir Quality Implementation Plans: Indiana; Extended PermitTermis for Renewal ofFederally Enforceable State Operating Permits, 74 Fed. Reg. 20599, May 5, 2009. 7. FirstNotice 8. Proposed Amendments to 35 lll. Adm. Code Section 201.162 9. Documents Relied On *a. lllinois Environmental Protection Act (415 ILCS 5/et. seq.) *b. USEPA's "Approval and Promulgation ofImplementation Plans; lllinois," Final Rule, 57 Fed. Reg. 59928, December 17, 1992. 10. Certificate ofService *Copies ofdocuments with anasteriskbeside the letterhave notbeenprovided.Clt::\...ll Ulll\... IIIIII!::J
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BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF: ) ) 10-YRFEDERALLY ENFORCEABLE ) STATE OPERATING PERMITS ) ("FESOP"): AMENDMENTS TO ) 35 ILL ADM. CODE PART 201.162 ) R10- (Rulemaking- Air)

APPEARANCE

Theundersigned, as one ofits attorneys, hereby enters an Appearance on behalf ofthe illinois Environmental Protection Agency.

DATED: April 20, 2010 P.O. Box 19276 Springfield, illinois 62794-9276 217/782-5544 ILLINOIS ENVIRONMENTAL PROTECTIONAGENCY By: /s/ Rachel L. Doctors Assistant Counsel Division ofLegal Counsell::.lt::vll Ulll\., I lllii!:::J - f'\t::\.,t::IVt::U, \...llt::ll'\;::, Vlll\.,t::, 1"\fJlll**~U, ~U**  I U 

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Agency: Part/Title: Agency Analysis ofEconomic and Budgetary Effects ofProposed Rulemaking Illinois Pollution Control Board Permits and General Provisions (35 Ill. Adm. Code Part 201)

Illinois Register Citation:

_____________ _ Please attemptto provide as dollar-specific responses as possible and feel free to add any relevant explanation. 1. Anticipated effect on State expenditures and revenues. (a) Current costto tl1e agency fortlus program/activity. $ 480,000 per year (approximately, 4 FTE's@ $120,000 salary plus benefits) (b) Ifthis rulemaking will result in an increase ordecrease in cost, specify the fiscal yearin whichthis change will first occurandthe dollar amount ofthe effect. Decrease bv approximatelv 25% (sources will still seek revisions to their FESOPs and Green House Gas regulation will increase the number of FESOP sources). (c) Indicate the funding source, including Fund and appropriation lines, for this program/activity. Clean AirAct Permit Program (CAAPP) andthe Permit and Inspection Fund. (d) If an increase or decrease in the costs of another State agency is anticipated, specify the fiscal year in which this change will first occur and the estimated dollar amount ofthe effect. Department of Commerce and Economic Opportunity (DCEO). There will be negligible cost savings, ifany. (e) Will this rulemaking have any effect on State revenues or expenditures not already indicated above? No.

2. Economic effect on persons affected bythe rulemaking: (a) Indicate the economic effect and specifythe persons affected: Positive _K_ Negative

__ No effect

__ Persons affected: Broad range of industrial sectors, mostly small and medium sized companies.Cltji.,LJ Ulllv I**IIIII~** - f'l.tjl.,tjiVtjU 7 \..lltjll'\;::, Vlllvtj 7 /"'\!Jill t:..U, t:..U I U 

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Dollar amount per person: $200 (estimated cost to fill out FESOP renewal application form Total statewide cost: $16.000 per vear (800 FESOP sources x $200 x 1 PennitRenewal/10 year) (b) If an economic effect is predicted, please briefly describe how the effect will occur. Less cost to business and fewer delays to obtain FESOPs and construction permits for sources with a FESOP. 

### (c) Will the rulemaking have an indirect effect that may result in increased administrative costs? Will there be any change in requirements such as filing, documentation, reporting or completion offorms? The rulemaking mav result in a decrease in administrative costs.**CII:::~L.ll** UIIIL. 111111!:::1
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BEFORE THE ILLINOIS POLLUTION CONTROLBOARD

INTHE MATTER OF: ) ) 10-YRFEDERALLYENFORCEABLE ) STATE OPERATINGPERMITS ) ("FESOP"): AMENDMENTS TO ) 35 ILLADM. CODE SECTION 201.162 ) R10- (Rulemaking- Air)

STATEMENT OF REASONS The lllinois Environmental Protection Agency ("lllinois EPA" or "Agency") hereby submits this Statement ofReasons to the illinois Pollution Control Board ("Board") pursuant to Sections 10, 27, 28, and 39 ofthe Environmental Protection Act ("Act") (415 ILCS 5/10,27, 28, and 39) and 35 lll. Adm. Code 102.202(b)) in support of the attached proposed amendments. Included in this proposal are amendments to 35 lll. Adm. Code Section 201.162. This proposal amends the most recent version of35 ill. Adm. CodePart 201, as found on the Board's website.

I. ILLINOISENVIRONMENTAL PROTECTIONAGENCY'S PROPOSAL

a. Background- Federally Enforceable State Operating Permits On December 17, 1992, the United States Environmental Protection Agency ("USEPA") approved the provisions ofthe lllinois EPA'sFederally Enforceable State OperatingPermit ("FESOP") program. USEPA stated that lllinois EPA's FESOP program met all five criteriafor approving a state operating permit program as part ofa State Implementation Plan ("SIP"). Specifically, the lllinois EPA must submit its permit program to USEPA for approval; terms ofthe permit and its renewal mustbe legally enforceable; the terms and conditions ofthe permit must be at least as stringent as any-·-- .. •-•••- • •••••:::J t , ___ , ___ , -•-••'"" ........ 111.._,..._,, I \.f"'lll .._...._,,.._...._,IV 

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other applicable limitation or requirement contained in the SIP or enforceable by the SIP

orwaive any requirements that are federally enforceable (e.g., standards established under section Ill or 112 ofthe Clean AirAct ("CAA'')); the limitations, controls and requirements in the permit must be permanent, quantifiable and otherwise enforceable as

a practical matter; and the permits must be issued pursuantto public participation. Id. USEPA restated its approval ofthe lllinois EPA's FESOP program when it approved the CleanAirAct Permit Program ("CAAPP") pursuantto Section 39.5 ofthe Act. Subsection 3.3(c) ofSection 39.5 ofthe Act, gives the lllinois EPAthe authority to issue FESOPs for the purposes oflimiting a sources potential to emit pursuant to the lllinois EPA's general authority to issue state permits under Section 39(a) ofthe Act. TheBoard adopted regulations for implementation ofissuing state air pollution control permits in 35lll. Adm. Code 201. Section 201.162 specifies the duration that permits can be issued as either subjectto Section 201.169 (perpetual permits) orfive years. This proposal seeks to extend the term ofState operating permits from five to ten years. This proposal does not change the term ofperpetual permits issued pursuant to Section 201.169 or CAAPP permits issued pursuant to Section 39.5 ofthe Act. b. This Proposal This proposal extends the maximum term that a FESOP may be issued from five to ten years. Currently, State operating permits, except for smaller source permits, may only be issued for five years orless. Underthe proposal, the term that a FESOP could be issued would be extended from five to ten years at the discretion ofthe lllinois EPA. The lllinois EPA retains the discretion thatit currently has under Section 201.162 to issue permits for a term that is shorter than the maximum. Theterm for CAAPP permits issued**1-lt;;I.,~IUIIII.,** I**IIIII~-** 1"\.t;;l.,t;;IVt;;U, Vlt;;ll"\.;::1 \,JIIll.,t;;l 1\tJIII L.U, L.U IU 

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pursuant to Section 39.5 ofthe Act, except for sources exempted from CAAPP pursuant to subsection 1.1 ofSection 39.5 ofthe Act, would remain five years as required by statute. 415 ILCS 5/39.5(1.1). Owners or operators ofsources not subjectto CAAPP or requiring aFESOP would remain subjectto the requirements ofSection 201.169, which grants permits indefinitely. That Section requires that State permits only be renewed at the request ofthe illinois EPA orifthe circumstances underlying the permit change. Two other states have adopted or are in the process ofadopting rules extending the term ofFESOPsfrom five to 10 years. The State ofIndianareceived final approval oftheirrule on October 6, 2009. 74 Fed.Reg. 51240. (Art. "A")

c. Implementation The illinois EPAhas averaged 61 newFESOP applications each year since the year 2000 and 66 FESOP renewal applications each year overthe last ten years. When these applications come in and are reviewed, at the discretion ofthe illinois EPA, the permits will be granted for a term of 10 years. The illinois EPA may chooseto issue a FESOP for a term shorterthan ten years. FESOPs that are issued for a term shorterthan ten years include situations in which the source may have been out ofcompliance with the applicable requirements prior to issuance ofthe FESOP and need to perform additional performance testing to demonstrate or confirm compliancewith the applicable requirements. Itis importantto note that granting FESOPs for a longerterm will not affect the implementation ofair pollution control programs orenforcement ofair quality standards in the State ofillinois. Sources must comply with all applicable requirements ofthe Board's rules orthe Act, regardless ofthe length ofaFESOP's term orthe timing ofitsJ::II:;:\.,LIUIII\., 111111\::1- f'\.t;;\.,t;;JVt:::U, vlt:::JI'\.::> VIIJ\.,t;; 7 1"'\fJlll JC..U, JC..U IU 

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Issuance. FESOPs generally contain limits on the operations ofthe source, e.g., materials used and hours or operation, which effectively restrict the source's potential to emit. The lllinois EPA's program requires the permits to undergo public notice and be subject to public comments. A FESOP does not impact any previously or newly applicable substantive requirements ofthe Act, the Board's rules orthe Clean Air Act ("CAA"), such as a new maximum achievable control technology standard under Section 112 ofthe CAA. Such requirements remain independently enforceable. Similarly, owners and operators ofFESOPs will still need to meet all applicable requirements underthe Act, includingthose related to new construction. Therefore, an extension ofthe term for an initial or a renewal ofa FESOP from five to ten years does not delay an owner or operator's obligation to comply with all applicable requirements. 

### II. GEOGRAPHIC REGIONS AND SOURCES AFFECTED The entire State oflllinois will be affected, as no single region contains all FESOP sources. The proposed regulations will affect all ofthe approximately 800

sources in lllinois that have either applied for or have obtained a FESOP. The industrial sectors in which these sources are categorized are on Att." B."



### III. PURPOSE AND EFFECT OFTHE PROPOSAL The purpose ofthis proposal is to extend the maximum term that aFESOP may be issued from five to ten years. Currently, State operating permits, exceptfor smaller

source permits, may only be issued for five years or less. Underthe proposal, the permit term would be extended up toten years at the discretion ofthe lllinois EPA. Theterm for CAAPP permits issued pursuantto Section 39.5 ofthe Act, exceptfor sources exempted from CAAPP pursuant to subsection 1.1 ofSection 39.5 ofthe Act would remain 5 yearsl::ll:::::vliUIIII., rlllll8- "-t:::vt:::IVt:::U, vlt:::lr.;::, Vlllvt:::, /'"\f-1111 .t:U, .t:U IU 

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as required by statute. 415 ILCS 5/39.5(1.1). This proposal will have a positive economic impact on affected sources by reducing time spent on permit renewal applications. This proposal will also reduce the costs to the lllinois EPA associated with the time and effect required for processing these permit renewal applications. While sources with FESOP permits represent only a small amount ofemissions in lllinois, they require a large proportion ofthe lllinois EPA's permitting resources. The reduced frequency ofthese renewals will provide a significant time savings for the lllinois EPA. Within five years ofadoption ofthis proposal, it would be anticipated that the workload ofFESOP renewals would decrease by approximately ten percent. 

### IV. TECHNICAL FEASIBILITY AND ECONOMIC REASONABLENESS As discussed above, the proposal imposes no new regulatory requirements on affected sources. The amendments to Section 201.162 merely extend the duration of FESOPs. The amendments are expected to reduce administrative costs ofthe permitting process for both the affected sources and the lllinois EPA. As this proposal imposes no

new requirements or costs on affected sources, the proposal is both technically and economically feasible.



### V. COMMUNICATION WITH INTERESTED PARTIES These amendments are being proposed after representatives ofindustry and environmental groups have had an opportunity to reviewthe proposed changes and provide comments to the lllinois EPA. The lllinois EPA sent electronic mails to the affected owners and operators on January 22, 2010, as well as posting a notice on its website. The lllinois EPAreceived three oral comments. (Att. "C") Two comments**1-ICIJ~IVIIIIJ** I llllll::1- I'\.CIJCIVCU 1 VICJJ"\;:) "-'lllvC 1 fl.fJlllit:...V 1 lt:...V IV 

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were in favor and one comment had a concern. Therefore, it is the Illinois EPA's understanding thatthere are no specific issues identified by interested parties and that this rulemaking is not highly controversial. 

### VI. SYNOPSIS OFTESTIMONY Currently, the Illinois EPAplans to call Robert Bernoteit, UnitManager ofthe FESOP Unit ofthe Permit Section ofthe Bureau of

### Air. Mr. Bernoteit will testify about the amendments tothe rules and will assist in answering questions. Written testimony will be submitted prior to hearing in accordance with the Board's procedural rules. 

### VII. PUBLISHED STUDY ORRESEARCHREPORT No published study orresearch report was used in developing the proposed amendments to 35 Til. Adm. Code Section 201.162. 

### Vlll. THE ILLINOIS EPA'SPROPOSAL Section 201.162 Duration lllinois EPA is proposing to is to extend the maximum term that a FESOP may be issued from five to ten years.



### IX. CONCLUSION Forthe reasons stated above, the Illinois EPAhereby submitsthis regulatory proposal and respectfully requests thatthe Board expeditiously adopts these rules for the State oflllinois.C.lt:::l.JLI Ullll.J llllll!::f -**r\.t;;~.Jt;;IVt:::U,** vlt:::l";::, Vllll.Jt::: 1 r\f.JIII**~U, ~U**  I U 

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DATED: April 20, 2010 1021 North Grand Ave. East P.O. Box 19276 Springfield, IL 62794-9276 Respectfully submitted, ILLINOIS ENVIRONMENTAL PROTECTIONAGENCY By: /s/ Rachel L. Doctors Assistant Counsel Division ofLegal Counsel-·--"""-·II- I lllll;j I ,

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Attachment "B": Major SIC Number of Group Description Sources



### 01 Agricultural Production Crops 

### "' .) 

### 07 Agricultural Services 

### 5 10 Metal Mining 

### 1 12 Coal Mining 

### 1 13 Oil And Gas Extraction 

### 1 14 Mining And Quarrying OfNonmetallic Minerals, ExceptFuels 

### 6 16 Heavy Construction Other Than Building Construction Contractors 

### 1 17 Construction Special Trade Contractors 

### 2 20 Food And Kindred Products 

### 34 21 Tobacco Products 

### 1 22 Textile Mill Products 

### 1 23 Apparel And OtherFinished Products Made From Fabrics And SimilarMaterials 

### 5 24 Lumber And Wood Products, ExceptFurniture 

### 15 25 Furniture and Fixtures 

### 9 26 Paper and Allied Products 

### 43 27 Printing, Publishing, And Allied Industries 

### 53 ' 

### 28 Chemicals And Allied Products 

### 78 29 Petroleum Refining And Related Industries 

### 99 30 RubberAnd Miscellaneous Plastics Products 

### 37 32 Stone, Clay, Glass, And ConcreteProducts 

### 20 "'"' Primary Metal Industries 

### 29 .).) 

### 34 Fabricated Metal Products, ExceptMachinery And Transportation Equipment 

### 65 35 Industrial And Commercial Machinery And ComputerEquipment 

### 30 36 Electronic And OtherElectrical EquipmentAnd Components, Except ComputerEquipment 13 

### 37 Transportation Equipment 

### 14 38 Measuring, Analyzing, And Controlling Instruments; Photographic, Medical And Optical Goods; Watches And Clocks 

### 6 39 Miscellaneous Manufacturing Industries 11 

### 40 Railroad Transportation 

### 2 42 MotorFreight Transportation And Warehousing 

### 7 44 WaterTransportation 

### 3L-IVVI..IVIIIV I**IIIII~** l'VVVIVVY 7 '-"'1"-'11'-V ...._,IIIV'-'J I \f-'111 '-'-'J '-V IV 

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45 Transportation By Air 

### 3 46 Pipelines, ExceptNatural Gas 

### 5 47 Transportation Services 

### 4 48 Communications 

### 17 49 Electric, Gas, And Sanitary Services 

### 36 50 Wholesale Trade-durable Goods 

### 12 51 Wholesale Trade-non-durable Goods 

### 25 59 Miscellaneous Retail 

### 1 60 Depository Institutions 

### 1 63 Insurance Carriers 

### 1 65 Real Estate 

### 1 67 Holding And OtherInvestment Offices 

### 1 72 Personal Services 

### 6 73 Business Services 

### 9 76 Miscellaneous Repair Services 

### 4 80 Health Services 

### 28 82 Educational Services 

### 8 84 Museums, Art Galleries, And Botanical And Zoological Gardens 

### 1 87 Engineering, Accounting, Research, Management, And Related Services 

### 2 91 Executive, Legislative, And General Government, ExceptFinance 

### 9 92 Justice, Public Order, And Safety 

### 2 95 Administration OfEnvironmental Quality And Housing Programs 1 

### 96 Administration OfEconomic Programs 

### 1 97 National Security And International Affairs 

### 1 Unclassified 

### 231.-II;J\JLI VIII\J I**IIIII~** - I '\.C\JCIVCU 1 \JICI r'\. ;:I \JIII\JC 1 /""\fJIII**~V, ~VI**  V 

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BEFORETHE ILLJNOIS POLLUTION CONTROL BOARD

STATE OF ILLJNOIS COUNTYOFSANGAMON

CERTIFICATE OF SERVICE ) ) ) ) 

# ss

I, the undersigned, an attorney, state that I have served electronically the attached REGULATORYPROPOSALFOR10-YRFEDERALLYENFORCEABLESTATE OPERATJNGPERMITS ("FESOP") ofthe illinois Environmental Protection Agency upon the following persons: Dorothy Gunn, Clerk illinois Pollution Control Board State ofillinois Center 100 WestRandolph, Suite 11-500 Chicago, illinois 60601 Virginia Yang DeputyLegal Counsel illinois Dept. ofNatural Resources 524 South Second Street Springfield, illinois 62701-1787

Dated: April 20, 2010 1021 North Grand Avenue East Springfield, illinois 62794-9276 (217) 782-5544 217.782.9143 (TDD) MatthewDunn, Chief Attorney General's Office James R. Thompson Center 100 WestRandolph, 12th Floor Chicago, illinois 60601

ILLJNOIS ENVIRONMENTAL PROTECTIONAGENCY

/s/ Rachel L. Doctors Assistant Counsel AirRegulatory Unit Division ofLegal CounselC:lt:::\.,LJUIII\.,**111111~-** f'\C\.,CIVCU, \JICII\.;:) VIII\.,C 1 1'"\f..JIII £.U 1 £.U IU 

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ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF PROPOSED AMENDMENTS 1) Heading ofthePart: Permits and General Provisions 2) Code Citation: Amendments to 35 Ill. Adm. Code Part 201.162 3) SectionNumbers: 201.162 Proposed Action: Amend 4) Statutory Authority: Implementing and authorized by Sections 10 and 27 ofthe Illinois Environmental Protection Act [415 ILCS 5/10 and 27]. 5) A Complete Description ofthe Subjects and Issues Involved: This proposal will amend the Board's regulations that affect the permitting ofsynthetic minor sources and nonmajor sources. The proposal extends the duration offederally enforceable state operating permits (FESOPs) from 5 to 10 years unless the source is required to obtain a Clean Air ActPermit Program permit pursuantto Section 39.5 ofthe Illinois Environmental Protection Act ("Act") and not exempt pursuantto subsection 1.1 ofSection 39.5 ofthe Act. 415 ILCS 5/39.5(1.1). 6) Will this proposed amendment replace an emergency rule currently in effect? No 7) Does this rulemaking contain an automatic repeal date? No 8) Does this proposed amendment contain incorporations by reference? No 9) Arethere any other proposed amendments pending on this Part? No SectionNumbers Proposed Action Illinois Register Citation 10) Statement ofStatewide Policy Objectives: These proposed amendments do not create or enlarge a state mandate as defined in Section 3(b) ofthe State Mandates Act. [30 ILCS 805/3]. 11) Time, Place, and Manner in which interested persons may comment on this proposed rulemaking: The Board will accept written public comments on this proposal for a period offorty-five (45) days after the date ofpublication in the Illinois Register. Comments should reference Docket RIO- and be addressed to: · Clerk's Office Illinois Pollution Control Board 100 W. Randolph St., Suite 11-500L-IIOJvLI Vlllv I**IIIII~** -I '\CvCIVCU, \JICI r'\;:) VlllvC, 1'"\f..JIII £.U, £.U I U 

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ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF PROPOSED AMENDMENTS Chicago, IL 60601 and Rachel L. Doctors illinois Environmental Protection Agency 1021 North Grand Avenue East P.O. Box 19276 Springfield, IL 62794-9276 217-782-5544 12) Initial Regulatory Flexibility Analysis: A) Types ofsmall businesses, small municipalities and not for profit corporations affected: Any small businesses, small municipalities, or not-for-profit corporations that are required or decide to obtain a FESOP or synthetic minor operating permit could be affected by the proposed amendments. B) Reporting, bookkeeping or other procedures required for compliance: None C) Types ofProfessional skills necessary for compliance: None 13) This rulemaking was included on the most recent regulatory agenda: 34 Ill. Reg. 358, January 4, 2010. 14) Does this amendment require the review ofthe Procurement Policy Board as specified in Section 5-25 ofthe Illinois Procurement Code? [30 ILCS 500/5-25] No The full text ofthe Proposed Amendment(s) begins on the next page:Section 201.101 201.102 201.103 201.104

Section 201.121 201.122 201.123 201.124 201.125 201.126

Section 201.141 201.142 201.143 201.144 201.146 201.147 201.148 201.149 201.150 201.151 I::ICvliUIIII., 111111\::1-**~CI.JCIVCU,** \JICII'\;::, VIIII.JC, 1"'\fJIII ,c.,u, ,C.,U IU 

### * * * * * R2010-021 * * * * *

ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF PROPOSED AMENDMENTS TITLE 35: ENVIRONMENTALPROTECTION SUBTITLE B: AIR POLLUTION CHAPTER I: POLLUTION CONTROL BOARD SUBCHAPTER a: PERMITS AND GENERAL PROVISIONS PART 201 PERMITS AND GENERAL PROVISIONS

OtherDefinitions Definitions SUBPART A: DEFINITIONS

Abbreviations and Units Incorporations by Reference SUBPART B: GENERAL PROVISIONS

Existence ofPermitNoDefense ProofofEmissions Burden ofPersuasion RegardingExceptions Annual Report Severability Repealer SUBPART C: PROHIBITIONS

Prohibition ofAirPollution Construction Permit Required Operating Permits for New Sources Operating Permits for Existing Sources Exemptions from State PermitRequirements FormerPermits Operation Without Compliance Program and Project Completion Schedule OperationDuring Malfunction, Breakdown or Startups Circumvention Design ofEffluentExhaust SystemsSection 201.152 201.153 201.154 201.155 201.156 201.157 201.158 201.159 201.160 201.161 201.162 201.163 201.164 201.165 201.166 201.167 201.168 201.169 201.170 

### * * * * * R201 0-021 

### * * * * *

ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF PROPOSED AMENDMENTS SUBPART D: PERMIT APPLICATIONS AND REVIEW PROCESS

Contents ofApplication for Construction Permit Incomplete Applications (Repealed) Signatures (Repealed) Standards for Issuance (Repealed) Conditions Contents ofApplication for OperatingPermit Incomplete Applications Signatures Standards for Issuance Conditions Duration Joint Construction and OperatingPermits Design Criteria Hearings Revocation Revisions toPermits Appeals from Conditions Special Provisions for Certain Operating Permits Portable Emission Units SUBPART E: SPECIAL PROVISIONS FOR OPERATINGPERMITS FOR CERTAIN SMALLER SOURCES Section 201.180 201.181 201.187

Section 201.207 201.208 201.209 201.210 201.211 201.212 Applicability (Repealed) Expiration and Renewal (Repealed) Requirement for a Revised Permit (Repealed) SUBPARTF: CAAPP PERMITS Applicability Supplemental Information Emissions ofHazardous Air Pollutants Categories ofInsignificant Activities orEmission Levels Application for Classification as an Insignificant Activity Revisions toLists ofInsignificant Activities orEmission LevelsI::ICvliUIIIv 111111!:::1- 1\.CvCIVCU, \..IICII\.;:) VlllvC, 1"'\fJIII £.U, £.U IU 

### * * * * * R2010-021 * * * * *

ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF PROPOSED AMENDMENTS

SUBPART G: EXPERIMENTAL PERMITS (Reserved) SUBPART H: COMPLIANCE PROGRAMS AND PROJECT COMPLETION SCHEDULES Section 201.241 201.242 201.243 201.244 201.245 201.246 201.247

Section 201.261 201.262 201.263 201.264 201.265

Section 201.281 201.282 201.283

Section 201.301 201.302 Contents ofComplianceProgram Contents ofProject Completion Schedule Standards for Approval Revisions Effects ofApproval Records and Reports Submission and Approval Dates SUBPART I: MALFUNCTIONS, BREAKDOWNS OR STARTUPS

Contents ofRequestfor Permission to OperateDuring a Malfunction, Breakdown or Startup Standards for Granting Permissionto Operate During a Malfunction, Breakdown or Startup Records and Reports Continued Operation or Startup Priorto Granting ofOperating Permit Effect ofGranting ofPermission to Operate During aMalfunction, Breakdown or Startup SUBPART J: MONITORING AND TESTING

PermitMonitoring EquipmentRequirements Testing Records and Reports

Records Reports SUBPART K: RECORDS AND REPORTSSection 201.401 201.402 201.403 201.404 201.405 201.406 201.407 201.408 "-'"""""'"'Ill"' I**IIIII~** I '""-'"-'""-'IY'\J'-'4, ...._,1'\JII''to.J ..._,111\J"' I 'tJIII J;..V 7 /;..\J 1\J 

### * * * * * 

### R2010-021 * * * * *

ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF PROPOSED AMENDMENTS SUBPART L: CONTINUOUS MONITORING

Continuous Monitoring Requirements Alternative Monitoring Exempt Sources Monitoring System Malfunction Excess Emission Reporting DataReduction Retention oflnformation Compliance Schedules 201.APPENDIX A Rule into Section Table 201.APPENDIX B Section into Rule Table 201.APPENDIX C Past Compliance Dates AUTHORITY: Implementing Sections 10, 39, and 39.5 and authorized by Section 27 ofthe Environmental Protection Act [415 ILCS 5/10,27, 39, and 39.5]. SOURCE: Adopted as Chapter2: AirPollution, Part I: General Provisions, in R71-23, 4 PCB 191, filed and effective April 14, 1972; amended in R78-3 and 4, 35 PCB 75 and 243, at 3 

### TIL Reg. 30, p. 124, effective July 28, 1979; amended inR80-5, at 7lll. Reg. 1244, effective January 21, 1983; codified at 7lll. Reg. 13579; amended in R82-1 (Docket A) at 10 

### TIL Reg. 12628, effective July 7, 1986; amended in R87-38 at 13 Til. Reg. 2066, effective February 3, 1989; amended in R89-7(A) at 13 Til. Reg. 19444, effective December 5, 1989; amended in R89-7(B) at 15 

### TIL Reg. 17710, effectiveNovember 26, 1991; amended in R93-11 at 17lll. Reg. 21483, effectiveDecember 7, 1993; amended in R94-12 at 18 Til. Reg. 15002, effective September 21, 1994; amended in R94-14 at 18 Til. Reg. 15760, effective October 17, 1994; amended in R96-17 at 21 Til. Reg. 7878, effective June 17, 1997; amended in R98-13 at 22 Til. Reg. 11451, effective June 23, 1998; amended in R98-28 at 22 

### TIL Reg. 11823, effective July 31, 1998; amended in R02-10 at 27 Til. Reg. 5820, effectiveMarch 21, 2003; amended in R05-19 and R05-20 at 30 Til. Reg. 4901, effectiveMarch 3, 2006; amended in R07-19 at 33 Til. Reg. 11965, effective August 6, 2009; amended in R10-_ at_

### TIL Reg. , effective

_____ _ SUBPART D: PERMIT APPLICATIONS AND REVIEW PROCESS Section 201.162 Duration 

# ru No operating permit shall bevalid longerthan ten ffle-years or such shorterL-.ll::::aAIUIIIv I**IIIII~-** 1'-IJviJIVIJU, \JIIJir..;::)**~lllv~J,** 1"'"\fJIII .c..u, L.U IV 

### * * * * * R2010-021 

### * * * * *

ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF PROPOSED AMENDMENTS period as the Agency may specify in the operating permit as necessary to accomplish the purposes ofthe Act and this Chapter,.unless the source is subject to: 

## D. Section 201.169 ofthis Subpart,;_or 2) Section 39.5 ofthe Act, except for sources exempt pursuant to subsection 1.1 ofSection 39.5. 

## hl Applications for renewal ofan operating permit shall be submitted to the Agency at least 90 days prior to the expiration ofthe prior permit, and shall conform to Sections 201.157,201.158 and 201.159. The standards for issuance ofrenewal of operating permits shall be as setforth in Section 201.160. (Source: Amended at _ill. Reg. ___ , effective

_________ )

### * * * * * 

### R20 10-021 * 

### * * * *

BEFORE THEILLINOIS POLLUTION CONTROLBOARD

IN THE MATTER OF: ) ) 

### 10-YRFEDERALLY ENFORCEABLE ) STATE OPERATING PERMITS ) ("FESOP"): AMENDMENTS TO ) 35 ILL ADM. CODE PART 201.162 ) R10- (Rulemaking

- Air)

ILLINOIS ENVIRONMENTAL PROTECTIONAGENCY PROPOSAL OFREGULATIONS The Illinois Environmental ProtectionAgency moves that the Illinois Pollution Control Board adoptthe attached regulations.

DATED: April 6, 2010 Respectfully submitted, ILLINOIS ENVIROl\;TMENTAL PROTECTION AGENCY

# Byw~ Dougla

. Scot DirectorDoctors, Rachel From: Sent: To: Subject: I::.ICvll Ulllv**I-IIIII~** - r'\,CvCIVCU 7 \JICII'\;:, Vlllvt::, 1"\jJIII £.U 7 £.U I U 

### * * * * * R201 0-021 

### * * * * * Kaleel, Rob Friday, January 22, 2010 11 :42 AM 'iaap@hansoninfosys.com'; 'jeffa@gfai.org'; 'Brian Urbaszewski'; 'Kathy Andria'; '!ERG Staff'; 'OK Hirner'; 'Mark Biel'; Fulgenzi, Annette; Owen, Verena Draft Revisions to Part 201 to Extend Permit Terms for FESOPs The Illinois Environmental Protection Agency (IEPA) will be proposing rule revisions to 35 Administrative Code Part 201to extend the FESOP permit renewal term from five years to ten years. The IEPA has determined that extending the term to ten years will provide significant time and cost savings to the IEPA and**affect~d** sources by reducing the frequency of permit application submittals and processing. A draft of this proposal is now available on IEPA's web site. The IEPA is accepting comments regarding the rule revisions prior to their filing with the Illinois Pollution Control Board. Please submit your comments to epa.fesopcomments@i!linois.gov...._1"-'"'"1 '-'1 II"' I II II**I~** 1 '"-' "'"-' 1 y "-' "-'41 ' ..._, 1"-' 1 1' ._, '-" I I I'-'"-'' I 

### ',...,I I I /;... V ' '- V I V 

### * * * * * R2010-021 * * * * * Federal RegisterIVol. 74, No. 85 ITuesday, May 5, 2009 IProposed Rules 20665 B. EnvironmentalImpact

The agency has determined under 21 CFR 25.31(h) that this action is ofa type that does not individually or cumulatively have a significant adverse effect on the human environment. Therefore, neither an environmental assessment nor an environmental impact statement is required. C. Federalism

FDA has analyzed this proposed rule in accordance withthe principles set forth in Executive Order 13132. FDA has determined that the proposedrule does not contain policies that have substantial direct effects on the States, on the relationship between the National Government and the States, or on the distribution ofpower and responsibilities among the various levels ofgovernment. Accordingly, the agency has concluded that the proposed rule does not contain policies that have federalism implications as defined in the Executive order and, consequently, a federalism summary impact statement is not required. VI. Paperwork Reduction Act of1995

This proposed rule contains no collections ofinformation. Therefore, clearance bythe Office ofManagement and Budget under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501- 3520) is not required. VII. Request for Comments

Interested persons may submit to the Division ofDockets Management (see ADDRESSES) written or electronic comments regarding this document. Submit a single copy ofelectronic comments or two paper copies ofany mailed comments, except that individuals may submit one paper copy. Comments are to be identified with the docket numberfound in brackets in the heading ofthis document. Received comments may be seen in the Division ofDockets Managementbetween 9 a.m. and 4 p.m., Monday through Friday. List ofSubjects in 21 CFR Part 601

Administrative practice and procedure, Biologics, Confidential business information.

Therefore, under the Federal Food, Drug, and Cosmetic Act and the Publi.c Health Service Act, and under authonty delegated to the Commissioner ofFood and Drugs, 21 CFR part 601 is amended as follows: PART 601-LICENSING

1. The authority citation for 21 CFR part 601 continues to read as follows: Authority: 15 U.S.C. 1451-1561; 21 U.S.C. 321,351, 352,353,355,356b, 360, 360c360L360h-360j,371,374,379e, 381;42 U.S.C. 216, 241, 262, 263, 264; sec 122, Pub. L. 105-115,111 Stat. 2322 (21 U.S.C. 355 note).

2. Revise§ 601.8 to read as follows: § 601.8 Publication of revocation.

The Commissioner, following revocation ofa biologics license under 21 CFR 601.5(b), will publish a notice in the Federal Registerwith a statement ofthe specific grounds for the revocation.

Dated: March 25, 2009. Jeffrey Shuren, Associate Commissioner for Policyand Planning. [FR Doc. E9-10243 Filed 5-4-09; 8:45am] BILLING CODE 4160-01-5 ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA-ROS-OAR-2008-0031; FRL-8899-4] Approval and Promulgation ofAir Quality Implementation Plans; Indiana; Extended Permit Terms for Renewal of Federally Enforceable State Operating Permits AGENCY: EnvironmentalProtection Agency (EPA). ACTION: Proposed rule. SUMMARY: EPA is proposing to approve Indiana's rule revision to extend permit terms for the renewal ofFederally Enforceable State Operating Permits (FESOPs) from five years to ten years. Indiana submitted this rule revision for approval onDecember 19, 2007. FESOPs apply to non-major sources that obtain enforceable limits to avoid being subjectto certain Clean Air Act (Act) requirements, including the Title V operating permit program.**Neith~r** the Act nor its implementing regulatiOns specify a permit-term requirementfor FESOPs. This rule revision will provide reliefto Indiana's resource burden of processing permitrenewals. Itwill also allow the Indiana Department of Environmental Management to devote more resources to major source Title V permitting actions and permit modifications for both Title V and FESOP sources. DATES: Comments mustbe received on or before June 4, 2009. ADDRESSES: Submit your comments, identified byDocket ID No. EPA-R05- 0AR-2008-0031, by one ofthe following methods: 1. http:/ !www.regulations.gov:Follow the on-line instructions for submitting comments.

2. E-mail: blakley.pamela@epa.gov. 3. Fax: (312) 692-2450. 4. Mail: Pamela Blakley, Chief, Air Permits Section, Air Programs Branch (AR-18J), U.S. Environmental Protection Agency, 77 WestJackson Boulevard, Chicago, Illinois 60604.

5. Hand Delivery: Pamela Blakley, Chief, Air Permits Section, Air Programs Branch (AR-18J), U.S. Environmental Protection Agency, 77 WestJackson Boulevard, Chicago, Illinois 60604. Such deliveries are only accepted during the Regional Office normal hours ofoperation, and special arrangements shouldbe made for deliveries ofboxed information. The Regional Office official hours ofbusiness are Monday through Friday, 8:30 a.m. to 4:30p.m. excluding Federal holidays. Please see the direct final rule which is located in the Rules section ofthis Federal Register for detailed instructions on how to submit comments. FOR FURTHER INFORMATION CONTACT: Sam Portanova, Environmental Engineer, Air Permits Section, Air Programs Branch (AR-18J), EnvironmentalProtection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604, (312) 886-3189, portanova.sam@epa.gov. SUPPLEMENTARY INFORMATION: In the Final Rules section ofthis Federal Register, EPA is approving Indiana's state implementation plan submittal as a direct final rule without prior proposal because the Agency views this as a noncontroversial submittal and anticipates no adverse comments. A detailed rationale for the approval is set forth in the direct final rule. Ifno adverse comments are received in response to this rule, no further activity is contemplated. IfEPA receives adverse comments, the direct final rule will be withdrawn and all public comments received willbe addressed in a subsequent final rule based on this proposedrule. EPA will not institute a second comment period. Any parties interested in commenting on this action should do so at this time. Please note that ifEPA receives adverse comment on an amendment, paragraph, or section ofthis rule and ifthatprovision maybe severed from the remainder ofthe rule, EPA may adopt as final those provisions ofthe rule that are not the subject of an adverse comment. For additional information, see the direct final rule which is located in the Rules section of this Federal Register.L..ICvLIVIIIv I llllll::f- I"\.CvCIVCU 7 VICir"\.i:l \JIIIvC 7 /""\jJIII &...V 7 &...V IV 

### * * * * * R2010-021 * * * * * 20666 Federal Register/Val. 74, No. 85/Tuesday, May 5, 2009/Proposed Rules

Dated: April 20, 2009. WalterW. Kovalick, Jr., ActingRegionalAdministrator, Region 5. [FR Doc. E9-10334 Filed 5-4-09; 8:45am] BILLING CODE 6560-50-P

DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION**NAT~NALAERONAUTICSAND** SPACE ADMINISTRATION 48 CFR Part 52 [FAR Case 2008-015; Docket 2009-0015; Sequence 1] RIN: 9000-AL26 Federal Acquisition Regulation; FAR Case 2008-015, Payments Under Fixed-Price Architecture and Engineering Contracts AGENCIES: Department ofDefense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Proposed rule with request for comments. SUMMARY: The Civilian Agency Acquisition Council (CAAC) and the Defense Acquisition Regulations Council (DARC) propose to amend the FederalAcquisition Regulation (FAR) to revise the withholding-of-payment requirements under FAR clause 52.232- 10, Payments Under Fixed-Price Architect-Engineer Contracts. DATES: Interested parties should submit written comments to the Regulatory Secretariat on or before July 6, 2009 to be considered in the formulation ofa final rule. ADDRESSES: Submit comments identified by FAR case 2008-015 by any ofthe following methods:

• Regulations.gov: http:/ I www.regulations.gov.

Submit comments via the Federal eRulemaking portalby inputting "FAR Case 2008-015" under the heading "Comment or Submission". Selectthe link "Send a Comment or Submission" that corresponds with FAR Case 2008- 015. Follow the instructions provided to complete the "Public Comment and Submission Form". Please include your name, company name (ifany), and "FAR Case 2008-015" on your attached document.

• Fax:202-501-4067. • Mail: General Services Administration, Regulatory Secretariat (VPR), 1800 F Street NW, Room 4041, Washington, DC 20405, ATTN: Hada Flowers.

Instructions: Please submit comments only and cite FAR case 2008-015 in all correspondence related to this case. All comments received willbe posted without change to http:// www.regulations.gov, including any personal and/orbusiness confidential information provided. FOR FURTHER INFORMATION CONTACT Ms. Meredith Murphy, Procurement Analyst, at (202) 208-6925 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501-4755. Please cite FAR case 2008-015. SUPPLEMENTARY INFORMATION: A. Background

The FederalAcquisition Regulation (FAR) 52.232-10, Payments under Fixed-Price Architecture-Engineer Contracts, currently requires the contracting officer to withhold 10% of the amounts due on each voucher; however, payment maybe made in full during any month in which the contracting officer determines the performance to be satisfactory. The Government retains the withhold amount until the contracting officer determines that the work has been satisfactorily completed. The contracting officer may release excess withhold amounts to the contractor when itis determined that work is substantially complete and when the contracting officer determines that the amountretained is in excess ofthe amount adequate for the protection of the Governments interests.

This rule proposes to revise FAR 52.232-10 to permit contracting officers to use theirjudgmentregarding the amount ofpayment withholdto apply under fixed-price architecture-engineer contracts (based on an assessment ofthe contractor's performance under the contract) so that the withhold amount will be applied at the level necessary to protectthe Government's interests. This is in contrastto the current requirement that contracting officers withhold 10 percent on allpayments. Thus, the rule proposes to revise paragraphs (b) and (c) ofthe contract clause at FAR 52.232-10 to state that the contracting officer may (rather than shall) withhold up to 10 percent ofthe payment amount due and that the amount ofwithhold shallbe determinedbased upon the contractor's performance record. The rule also makes several related editorial changes including one that clarifies that the contractor will be paid any unpaid balance due to include withhold amounts at the successful completion of the design work.

This case originated from a recommendation in the Small Business Administration's Regulatory Review and Reform (r3) initiative. The current withholding provisions negatively impact the cash flow ofarchitectengineer contractors and may, in some instances, result in the withholding of amounts that exceed reasonable amounts to protect the Government's interests.

This is not a significant regulatory action and, therefore, is not subject to review under Section 6(b) ofExecutive Order 12866, Regulatory Planning and Review, dated September 30, 1933. This rule is not a major rule under 5 U.S.C. 804. B. Regulatory FlexibilityAct

The Councils do not expect this proposed rule to have a significant economic impact on a substantial number ofsmall entities within the meaning ofthe Regulatory Flexibility Act, at 5 U.S.C. 601, etseq., because the rule does not impose any additional requirements on smallbusinesses. There are approximately 230,000 architectengineer firms, many ofwhich are small businesses. This rule actually eases the impact on such firms. Therefore, an Initial Regulatory Flexibility Analysis has notbeen performed. We invite comments from smallbusinesses and other interested parties. The Councils will consider comments from small entities concerning the affected FAR Part 52 in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 601, etseq. (FAR Case 2008-015) in correspondence. C. Paperwork Reduction Act

The Paperwork Reduction Act does not applybecause the proposed changes to the FAR do not impose information collection requirements thatrequire the approval ofthe Office ofManagement and Budgetunder 44 U.S.C. 3501, et seq. List ofSubjects in 48 CFR Part 52

Government Procurement. Dated: April 28, 2009. AI Matera Director, Office of AcquisitionPolicy. Therefore, DoD, GSA, and NASA propose to amend 48 CFR part 52 as set forth below: PART 52-SOLICITATION PROVISIONS AND CONTRACT CLAUSES 1. The authority citation for 48 CFR part 52 is revised to read as follows:

# Attachment

2ILLINOIS POLLUTION CONTROL BOARD June 9, 2010 IN THE MATTER OF: ) ) 10-YEAR FEDERALLY ENFORCEABLE ) STATE OPERATING PERMITS (FESOP): ) AMENDMENTS TO 35 ILL. ADM. CODE ) 201.162 ) R 10-21 (Rulemaking- Air)



### NOTICE 

### OF HEARING DATES, TIMES, PLACES: Thursday, July 8, 2010 at 12:00 noon JAMES R. THOMPSON CENTER Room 11-512 100 W. Randolph-Room 11-512 Chicago, IL 60601 PURPOSE OF HEARING: ATTENDING BOARD MEMBER: HEARING OFFICER: Wednesday, July 21, 2010 at 1:00 p.m. IEPA OFFICE BUILDING Room 1244N, FirstFloor 1021 N. Grand Avenue East Springfield, IL 62794 Merit and economic CarrieZalewski Kathleen M. Crowley


### HEARING OFFICER ORDER Procedural History OnApril20, 2010, the Illinois Environmental ProtectionAgency (Agency or IEPA) filed a proposal for amendments to the Board's airrules pursuant to the general rulemakings provisions ofSection 27 ofthe lllinois Environmental Protection Act (Act), 415 ILCS 5/27 (2008) and the Boards procedural rules at 35 Ill. Adm. Code 102. Inthe StatementofReasons (SR) accompanying the proposal, the Agency stated that this proposal would extend from five years to ten years the maximumterm that the Agency could issue a Federally Enforceable State Operating Permit (FESOP). SR at 1-2. The sole provision of the airrules to be amended is Section 201.162, codified at 35 Ill. Adm. Code201.162. Ina May 6, 2010 order, the Board accepted the proposal for hearing. The Board also authorized publication ofthe proposal (without comment on the proposal's merits) in theIllinois

In compliancewith the Americans With Disabilities Act and other applicable federal and State laws, the hearings will beaccessible to individuals with disabilities. Persons requiring auxiliary aids should contactJohnT. Therriault, Assistant Clerk ofthe Board, I00 West Randolph Street, Suite 1!-500, Chicago, Illinois 60601, at telephone number (312) 814-3620, orTDD number(312) 814-6032, at least five days beforethe particularhearing.2 Register as required by the Illinois Administrative ProcedureAct (IAPA), 5 ILCS 100 etseq. (2008). The Hearings TheBoard will conduct two hearings inorderto allow theproponent and any other interestedparticipants the opportunity to presenttestimony on the merits and economic impact of the rulemaking proposal. Athearing, all persons who testify willbe sworn in and subjectto questioning

.. As indicated above in the notice ofhearings, the first hearing will beginonThursday, July 8, 2010 and will continueuntil the day's business is completed, butin no event laterthan 5:00p.m. The second hearing is scheduled to beginWednesday, July21, 2010 and will continue until the day's business is completed, but in no event laterthan 4:30p.m. However, the rule proponentexpects that these will be shorthearings, and potential participants are advised to arrive in timely fashion. Pre-FilingDeadlines Participants who intendto testify mustpre-file their testimony and serve the testimony on the hearing officer and allpersons onthe ServiceList. Beforefiling pre-filed testimony or any otherdocument with the Clerk, please checkfor the mostrecent versionofthe Service List with the hearing officer orthe Clerk's Office. Participants inthe first hearing are directedto pre-file all oftheirtestimony and any related exhibits no laterthanFriday, June 25, 2010. Under Section 27 ofthe Act (415 ILCS 5/27 (2006)), the first hearing is not limited to the testimony oftheproponent. But, thehearing officer presently intends to allow the Agency as proponentto presentthe testimony ofall ofits witnesses beforehearing the testimonyofotherparticipants. Therefore, any otherperson wishing to testify at thefirst hearing should also pre-file their byJune 25, 201'0. Participants wishing to testify at the secondhearing are directed to pre-file all oftheir testimony and any related exhibits no later than Friday, July 16, 2010. The "mailbox rule" at 35 Ill. Adm. Code 101.300(b)(2) does not applyto thefiling ofthis pre-filed testimony, and the Board's Clerkmusttherefore receive these documents before the close ofbusiness onthe specified dates. However, pre-filed testimony and other documents maybefiled electronicallythough the Clerk's Office On-Line (COOL) from theBoard's Web site at www.ipcb.state.il.us. Any questions about electronic filing through COOL shouldbe directed to the Clerk's Office at (312) 814-3629. Order ofHearings Allpre-filed testimony will be, entered into the record as ifread. See 35 lll. Adm. Code 102.424(f). A briefsummary oftestimony will be allowed ifa witness wishes to provide one beforeresponding to questions. Participants who do notpre-file testimony will be allowedto testify as timepermits only after the conclusionofpre-filed testimony and questions basedupon3
it. Similarly, anyparticipant who wishes to offer a public comment will be allowed to do so as time permits at the close ofpre-filed testimony and the questions based upon it. Consequently, anyperson wishing to testify at either ofthe two hearings is urged to pre-file their testimony in orderto ensure that theyhave an opportunityto testify. In addition, the Board's procedural rules provide that "[t]he Board will accept written comments from any person concerning the proposed regulations during the first notice period." 35 TIL Adm. Code 102.604. Thehearing scheduled to begin onJune 18, 2009, will beginwith the Agency's presentation ofits case as theproponent. Afterthe Agency has answered all questions from other participants, and iftime permits beforethe conclusion ofthe first hearing, other persons who have pre-filed may testify. The Boardhas reserved sufficienttimefor each hearing and anticipates that any person who wishes to testify will have an opportunity for testimony and any cross-examination. In the event that any person who pre-files testimony for the firsthearing cannottestify on July 8, 2009, becausetime does not allow it, thatperson will be given priority to testify on July 21, 2009. TheJuly21, 2009 hearing will begin with any testimony from any participant who prefiled testimony for the first hearing and who was not able to testify at that time. Participants who pre-filedtestimony for the secondhearing will thenpresent that testimony. Anyparticipantwho wishes to offer a public comment at eitherhearing will be allowed to do so iftime permits at the close ofpre-filed testimony and the questions basedupon it. Again, written public comments maybe submitted to the Board. 

### See 35 TIL Adm. Code 102.604. Finally, the hearing officer, upon agreement oftheparticipants orupon motion to the hearing officer, may changethe order oftestimony at these hearings. 

### See 35 TIL Adm. Code 102.420, citing 35 TIL Adm. Code 10l.SubpartF. Service and Notice Lists TheBoard will establish a notice list and a service listfor this proceeding. Persons wishing to be added to either listmay contact the Clerk's Office or the hearing officer. All persons on the notice list will receive notice ofBoardopinions and orders and hearing officer orders. 35 Ill. Adm. Code 102.422(a). Under Section 102.422(b) ofthe Board's procedural rules, [t]he hearing officer may establish a service list for any regulatoryproceeding, in addition to thenotice list. Thehearing officer may direct participants to serve copies ofall documents upon the persons listed on the service list. For purposes offast-track rulemakings under Section 28.5 ofthe Act, participants of record will be the individuals on the service list. 35 TIL Adm. Code 102.422(b). In addition to receiving notice ofall Board actions and hearing officer orders, persons on the service list will receive pre-filed testimony and other filings in this proceeding.

### 4
The service list is intended for persons such as those who will testify and participate actively in this rulemaking. Persons on the ServiceListfor this rulemaking receive not only the Board's opinions and orders but also other filings such as pre-filed testimony and public comments. But, persons onthe service list are also required to serve copies ofthe filings they make on otherpersons onthe service list. Interested persons maynowrequest electronic notice offilings byproviding their e-mail address through COOL under this docket number: R09-20. This electronic notice includes notice ofthe filing ofdocuments that are not typicallyprovided to persons onthe Notice List. In addition, COOLprovides links to documents filed with the Board, and those documents can be viewed, downloaded, and printed free ofcharge as soon as they are posted to the Board's Web site. Formore information about the option ofelectronic notice or COOL, consult eitherthe Board's Web site at www.ipcb.state.il.us orJohn Therriault, the Board's Assistant Clerk, at (312) 814-3629. Atthe close ofthe second hearing, the hearing officerwill set a date bywhich the record will close and all public comments mustbe submitted. 

### See 35 

### IlL Adm. Code 102.108. As the Board is aware that the Agency would appreciate Board decision making as soon as possible, the post-hearing commentperiod will notbe lengthy unless unanticipated circumstances dictate otherwise. IT IS SO ORDERED.

Kathleen M. Crowley Hearing Officer, lllinois Pollution Control Board 100 WestRandolph Street, Suite 11-500 Chicago, lllinois 60601 (312) 814-6929 crowlek@ipcb.state.il.us

# Attachment
3ILLINOIS POLLUTION CONTROL BOARD June 17,2010

IN THE MATTER OF: ) ) 10-YEAR FEDERALLY ENFORCEABLE ) STATE OPERATING PERMITS (FESOP): ) AMENDMENTS TO 35 ILL. ADM. CODE ) 201.162 ) Proposed Rule. First Notice. R10-21 (Rulemaking -Air)

OPINION AND ORDER OF THE BOARD (by C.K. Zalewski): OnApril 20, 2010, the Illinois Environmental Protection Agency (Agency or IEPA) filed a proposal for amendments to the Board's air rules pursuant to the general rulemakings provisions ofSection 27 ofthe Illinois Environmental ProtectionAct (Act), 415 ILCS 5/27 (2008) and the Boards procedural rules at 35 Ill. Adm. Code 102. In the Statement ofReasons (SR) accompanying the proposal, the Agency stated that this proposal would extend from five years to ten years the maximumterm that the Agency could issue a FederallyEnforceable State Operating Permit (FESOP). SR at 1-2. The soleprovision of the airrules to be amended is Section 201.162, codified at 3 5 Ill. Adm. Code 201.162. By order ofMay 6, 2010, the Board accepted theproposal for hearing. Today, the Board authorizes first-notice publication oftheproposal without comment on the proposal's merits under the Administrative Procedure Act (APA), 415 ILCS 5/100 et. seq. (2008). THE PROPOSAL Bywayofbackground, the Agency explains that on December 17, 1992, the United States Environmental Protection Agency (USEPA) approved the provisions ofthe Illinois (FESOP) program as part ofthe State Implementation Plan (SIP) for meeting the goals ofthe Federal CleanAirAct (CAA). USEPA found that Illinois' FESOP program met all five criteria for approving a state operatingpermitprogram as part ofa SIP. Among otherthings, these criteriarequire that tenns ofthe (FESOP) permit and its renewal must belegally enforceable; the terms and conditions ofthe permitmustbe at least as stringent as any other applicable limitation or requirement contained in the SIP or enforceablebythe SIP or waive anyrequirements that are federally enforceable (e.g., standards establishedunder section 111 or 112 ofthe Clean AirAct); the limitations, controls and requirements in the permit mustbepermanent, quantifiable and otherwise enforceable as a practical matter; and the permits mustbe issued pursuantto public participation. Id.2

USEPA restated its approval

... when it approved the CleanAirAct Pennit Program ("CAAPP") pursuantto Section 39.5 ofthe Act. Subsection 3.3(c) of Section 39.5 ofthe Act, gives the Illinois EPA the authority to issue FESOPs for thepurposes oflimiting a sources potential to emit pursuant to the Illinois EPA's general authorityto issue statepermits under Section 39(a) oftheAct. SR at 1-2. Boardrules for issuance ofstate airpollution control pennits are codified at 35 Ill. Adm. Code 201. Section 201.162 specifies the duration thatpennits canbe issued as either subject to Section 201.169 (perpetual pennits) or five years. This proposal seeks to extend the tenn of State operatingpennits from five to ten years. This proposal does not change the term of perpetual permits issued pursuantto Section 201.169 or CAAPP permits issued pursuantto Section 39.5 ofthe Act. SR at 2. The Agencyrelates that two other states have adopted or are intheprocess ofadopting rules extendingthe term ofFESOPs from five to 10 years; final USEPA approval for Indiana's rule was published at 74Fed.Reg. 51240 (Oct. 6, 2009). SR at 3, and Att. A. The Agency explains that FESOP sources are located throughout the state, and that the proposedrules will affect approximately 800 sources that thathave applied for or obtained FESOPs. SR at 4 and Att. B. TheAgency explains that IEPA has averaged 61 new FESOP applications each year since the year 2000 and 66 FESOP renewal applications eachyear over the last ten years. Ifthe proposal is adopted, whenthese applications come in and arereviewed, at the discretion ofthe Illinois EPA, the permits will be granted for a tenn of 1 0 years. The Illinois EPA may chooseto issue a FESOP for a term shorterthan ten years. FESOPs that are issued for a tenn shorterthan ten years include situations in which the sourcemayhave been out ofcompliance with the applicablerequirements priorto issuance ofthe FESOP and need to perfom1 additional perfonnancetesting to demonstrate or confirm compliance with the applicable requirements. SR at 3. The Agency explains that the amendments are "expected to reduce administrative costs ofthepennittingprocess for both the affected sources and the Illinois EPA." SR at 5. TheAgency states that its outreachto affected sources included e-mail in January 2010, as well as a notice onits website. TheAgency states that inresponse, itreceived three oral comments. Two ofthese supported theproposal, while one expressed a concern. FIRST NOTICE PUBLICATION WITHOUT COMMENT ON THE MERITS

The Boardtypicallyholds hearings onrulemaking proposals priorto initiatingthe APA first noticeperiodbypublication ofa proposal intheIllinois Register. This allows the Board, the proponent, theregulated community, and the public an opportunityto familiarize themselves with the issues and the otherparticipants' positions. Once issues and languagerefinements are3
betterunderstood, the Board makes initial detenninations and first notice is published in the Illinois Register. In contrast to most proposals filed with the Board, this rulemaking involves a single section and a single issue, posing a simple question. The question is: should the Agencyhave the option ofissuing FESOP pennits for 10 years in appropriate cases? The proposal indicates that extending the permissiblepermit tenn from 5 to 10 years will result in cost savings to the Agency and the regulated community. Under these circumstances involving such a simple ruleproposal, the Board sees no reason not to expedite thehearing and comment process in this docket. The Board accordingly authorizes first notice ofthis proposal without cmmnent onthe merits. Thehearing officer is directed to schedulehearings in July, 2010 ifpossible consistent with Board and Agencyresource needs and applicable notice requirements. ORDER The Board directs the Clerk to cause APA first-notice publication intheIllinois Register ofthe following proposedrule. Additions are indicated byunderlining, and deletions by overstriking.

Section 201.101 201.102 201.103 201.104

Section 201.121 201.122 201.123 201.124 201.125 201.126 TITLE 35: ENVIRONMENTAL PROTECTION SUBTITLE B: AIR POLLUTION CHAPTER I: POLLUTION CONTROLBOARD SUBCHAPTER a: PERMITS AND GENERAL PROVISIONS PART 201 PERMITS AND GENERALPROVISIONS

Other Definitions Definitions SUBPART A: DEFINITIONS

Abbreviations and Units Incorporations byReference SUBPART B: GENERALPROVISIONS

Existence ofPermitNo Defense ProofofEmissions Burden ofPersuasion Regarding Exceptions Annual Report Severability RepealerSection 201.141 201.142 201.143 201.144 201.146 201.147 201.148 201.149 201.150 201.151

Section 201.152 201.153 201.154 201.155 201.156 201.157 201.158 201.159 201.160 201.161 201.162 201.163 201.164 201.165 201.166 201.167 201.168 201.169 201.170 4

SUBPART C: PROHIBITIONS

Prohibition ofAir Pollution Construction PennitRequired Operating Pennits for New Sources Operating Pennits for Existing Sources Exemptions from State PennitRequirements FonnerPennits OperationWithout Compliance Program and Project Completion Schedule Operation DuringMalfunction, Breakdown or Startups Circumvention Design ofEffluent Exhaust Systems SUBPART D: PERMIT APPLICATIONS AND REVIEW PROCESS

Contents ofApplication for Construction Permit Incomplete Applications (Repealed) Signatures (Repealed) Standards for Issuance (Repealed) Conditions Contents ofApplication for Operating Permit Incomplete Applications Signatures Standards for Issuance Conditions Duration Joint Construction and Operating Permits Design Criteria Hearings Revocation Revisions to Permits Appeals from Conditions Special Provisions for Certain Operating Permits Portable Emission Units SUBPART E: SPECIAL PROVISIONS FOR OPERATING PERMITS FOR CERTAIN SMALLER SOURCES Section 201.180 201.181 201.187 Applicability (Repealed) Expiration and Renewal (Repealed) Requirement for a Revised Permit (Repealed)Section 201.207 201.208 201.209 201.210 201.211 201.212 5
SUBPART F: CAAPP PERMITS Applicability Supplemental Infonnation Emissions ofHazardous AirPollutants Categories ofInsignificant Activities or Emission Levels Application for Classification as an Insignificant Activity Revisions to Lists ofInsignificant Activities orEmission Levels SUBPART G: EXPERIMENTAL PERMITS (Reserved) SUBPART H: COMPLIANCE PROGRAMS AND PROJECT COMPLETION SCHEDULES Section 201.241 201.242 201.243 201.244 201.245 201.246 201.247

Section 201.261 201.262 201.263 201.264 201.265

Section 201.281 201.282 201.283

Section Contents ofCompliance Program Contents ofProject Completion Schedule Standards for Approval Revisions Effects ofApproval Records and Reports Submission and Approval Dates SUBPART I: MALFUNCTIONS, BREAKDOWNS OR STARTUPS

Contents ofRequest for Permission to Operate During a Malfunction, Breakdown or Startup Standards for Granting Permissionto Operate During a Malfunction, Breakdown or Startup Records and Reports Continued Operation or Startup Priorto Granting ofOperating Permit Effect ofGranting ofPermissionto Operate During a Malfunction, Breakdown or Startup SUBPART J: MONITORING AND TESTING

Pennit Monitoring Equipment Requirements Testing Records and Reports SUBPART K: RECORDS AND REPORTS201.301 201.302 Records Reports 6

SUBPART L: CONTINUOUS MONITORING Section 201.401 201.402 201.403 201.404 201.405 201.406 201.407 201.408 Continuous Monitoring Requirements Alternative Monitoring Exempt Sources Monitoring System Malfunction Excess Emission Reporting Data Reduction Retention ofInformation Compliance Schedules 201.APPENDIX A Rule into Section Table 201.APPENDIX B Section into Rule Table 20l.APPENDIX C Past Compliance Dates AUTHORITY: Implementing Sections 10, 39, and 39.5 and authorizedby Section27 ofthe Environmental Protection Act [415 ILCS 5110,27, 39, and 39.5]. SOURCE: Adopted as Chapter 2: Air Pollution, Part I: General Provisions, inR71-23, 4 PCB 191, filed and effective April14, 1972; amended in R78-3 and 4, 35 PCB 75 and 243, at 3 Ill. Reg. 30, p. 124, effective July 28, 1979; amended in R80-5, at 7 Ill. Reg. 1244, effective January 21, 1983; codified at 7 Ill. Reg. 13579; amended in R82-1 (Docket A) at 10 Ill. Reg. 12628, effective July 7, 1986; amended in R87-38 at 13 Ill. Reg. 2066, effective February 3, 1989; amended in R89-7(A) at 13 Ill. Reg. 19444, effective December 5, 1989; amended in R89-7(B) at 15 Ill. Reg. 17710, effective November26, 1991; amended in R93-11 at 17 Ill. Reg. 21483, effective December 7, 1993; amended in R94-12 at 18 Ill. Reg. 15002, effective September21, 1994; amended in R94-14 at 18 Ill. Reg. 15760, effective October 1 7, 1994; amended in R96-17 at 21 Ill. Reg. 7878, effective June 17, 1997; amended in R98-13 at 22 Ill. Reg. 11451, effective June 23, 1998; amended in R98-28 at 22 Ill. Reg. 11823, effective July 31, 1998; amended in R02-10 at 27 Ill. Reg. 5820, effective March 21, 2003; amended in R05-19 and R05-20 at 30 Ill. Reg. 4901, effective March 3, 2006; amended in R07-19 at 33 Ill. Reg. 11965, effective August 6, 2009; amended in R10-21 at 34 Ill. Reg , effective SUBPART D: PERMIT APPLICATIONS AND REVIEW PROCESS Section 201.162 Duration a) No operating permit shall be valid longer than ten ;fWe...years or such shorter period as the Agencymay specifyin the operatingpermit as necessaryto accomplish the purposes ofthe Act and this Chapter_,_ unless the source is subject to:7 

### ll Section 201.169 ofthis Subpart;_or 2) Section 39.5 ofthe Act, except for sources exemptpursuant to subsection 1.1 ofSection 39.5. b) Applications for renewal ofan operatingpermit shall be submitted to the Agency at least 90 days priorto the expiration ofthe prior permit, and shall conform to Sections 201.157,201.158 and 201.159. The standards for issuance ofrenewal of operatingpennits shall be as set forth in Section 201.160. (Source: Amended at 34 Ill. Reg. , effective ) IT IS SO ORDERED. I, John T. Therriault, Assistant Clerk ofthe Illinois Pollution Control Board, certify that the Board adopted the above opinion and order on June 17, 2010 bya vote of5-0.

John T. Therriault, Assistant Clerk Illinois Pollution Control Board

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## OFFICE OF THE SECRETARY OF STATE JESSE WHITE • 

### Secretary ofState

June 24, 2010

POLLUTION CONTROL BOARD JOHN THERRIAULT ASSISTANT CLERK 100 W RANDOLPH ST, STE 11-500 CHICAGO, IL 60601 Dear JOHN THERRIAULT ASSISTANT CLERK 

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Your rules Listed belowmet our codification standards and have been published in Volume 34, Issue 27 ofthe Illinois Register, dated 7/2/2010. OTHERINFORMATION REQUIRED BYLAWTO BE PUBLISHED IN THE ILLINOIS REGISTER Notice ofPublic Information Point ofContact: Carol Webb 8773 PROPOSED RULES General Provisions 35 Ill. Adm. Code 101 Point ofContact: Nancy Miller Permits and General Provisions 35 HI. Adm. Code 20l Point ofContact: Nancy Miller REGULATORY AGENDA General Rules Point ofContact: Carol Webb 85o8 

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8679 

### Ifyou have any questions, you may contact the Administrative Code Division at

(217) 782-7017.

Index Department- Administrative Code Division- Ill EastMonroe Springfield, IL 62756ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF PROPOSED AMENDMENT 1) Heading ofthe Part: Permits and General Provisions 2) Code Citation: 35 Ill. Adm. Code 201 3) Section Numbers: 201.162 Proposed Action: Amend 4) Statutory Authority: Implementing and authorized by Sections 10 and 27 ofthe Illinois Environmental Protection Act [415 ILCS 5/10 and 27]. 5) A Complete Description ofthe Subjects and Issues Involved: This proposal will amend the Board's regulations that affectthe permitting ofsynthetic minor sources and nonmajor sources. The proposal extends the duration offederally enforceable state operating permits (FESOPs) from 5 to 10 years unless the source is required to obtain a Clean Air Act Permit Program permitpursuant to Section 39.5 ofthe Illinois Environmental Protection Act ("Act") and not exemptpursuant to subsection 1.1 ofSection 39.5 ofthe Act. 415 ILCS 5/39.5(1.1). 6) Will this proposed amendmentreplace an emergency rule currently in effect? No 7) Does this rulemaking contain an automatic repeal date? No 8) Does this proposed amendment contain incorporations by reference? No 9) Are there any otherproposed amendments pending onthis Part? No 1

0) Statement ofStatewide Policy Objectives: These proposed amendments do not create or enlarge a state mandate as defined in Section 3(b) ofthe State Mandates Act. [30 ILCS 805/3]. 11) Time, Place, and Manner in which interested persons may comment on this proposed rulemaking: The Board will accept writtenpublic comments onthis proposal for a period offorty-five (45) days after the date ofpublication in the Illinois Register. Comments shouldreference Docket R10-21 and be addressed to:

### ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF PROPOSED AMENDMENT Clerk's Office Illinois Pollution Control Board 100 W. Randolph St., Suite 11-500 Chicago, IL 60601 Interested persons mayrequest copies ofthe Board's opinion and order in Rl0-19 by calling the Clerk's office at 312-814-3620, or may download copies from the Board's Web site at www.ipcb.state.il.us. Formore information, contact hearing officer Kathleen Crowley at 312/814-6929 oremail at crowlek@ipcb.state.il.us. 12) Initial Regulatory Flexibility Analysis: A) Types ofsmall businesses, small municipalities and not for profit corporations affected: Any small businesses, small municipalities, or not-for-profit corporations that are required or decide to obtain a FESOP or synthetic minor operating permit could be affected by the proposed amendments. B) Reporting, bookkeeping or otherprocedures required for compliance: None C) Types ofProfessional skills necessary for compliance: None 13) This rulemaking was included on the most recent regulatory agenda: 34 

### Ill. Reg. 358, January 4, 2010. 14) Does this amendment require the review ofthe Procurement Policy Board as specified in Section 5-25 ofthe Illinois Procurement Code? [30 ILCS 500/5-25] No The full text ofthe Proposed Amendment begins on the next page:Section 201.101 201.102 201.103 201.104

Section 201.121 201.122 201.123 201.124 201.125 201.126

Section 201.141 201.142 201.143 201.144 201.146 201.147 201.148 201.149 201.150 201.151 ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF PROPOSED AMENDMENT TITLE 35: ENVIRONMENTALPROTECTION SUBTITLE B: AIRPOLLUTION CHAPTER I: POLLUTION CONTROLBOARD SUBCHAPTER a: PERMITS AND GENERAL PROVISIONS PART 201 PERMITS AND GENERAL PROVISIONS

OtherDefinitions Definitions SUBPART A: DEFINITIONS

Abbreviations and Units IncorporationsbyReference SUBPART B: GENERAL PROVISIONS

Existence ofPermitNo Defense ProofofEmissions Burden ofPersuasion RegardingExceptions Annual Report Severability Repealer SUBPART C: PROHIBITIONS

Prohibition of

### AirPollution ConstructionPermitRequired OperatingPermits for New Sources Operating Permits for Existing Sources Exemptions from State Permit Requirements FormerPermits OperationWithout ComplianceProgram and Project Completion Schedule Operation During Malfunction, Breakdown or Startups Circumvention Design ofEffluent Exhaust SystemsSection 201.152 201.153 201.154 201.155 201.156 201.157 201.158 201.159 201.160 201.161 201.162 201.163 201.164 201.165 201.166 201.167 201.168 201.169 201.170 ILLINOIS REGISTER POLLUTION CONTROLBOARD NOTICE OFPROPOSED AMENDMENT SUBPART D: PERMIT APPLICATIONS AND REVIEW PROCESS

Contents ofApplication for ConstructionPermit Incomplete Applications (Repealed) Signatures (Repealed) Standards for Issuance (Repealed) Conditions Contents ofApplication for Operating Permit IncompleteApplications Signatures Standards for Issuance Conditions Duration Joint Construction and Operating Permits DesignCriteria Hearings Revocation Revisions to Permits Appeals from Conditions Special Provisions for Certain OperatingPermits Portable EmissionUnits SUBPART E: SPECIAL PROVISIONS FOR OPERATING PERMITS FOR CERTAIN SMALLER SOURCES Section 201.180 201.181 201.187

Section 201.207 201.208 201.209 201.210 201.211 201.212 Applicability (Repealed) Expiration and Renewal (Repealed) Requirementfor a Revised Permit (Repealed) SUBPART F: CAAPP PERMITS Applicability Supplemental Information Emissions ofHazardous AirPollutants Categories ofInsignificantActivities or Emission Levels Application for Classification as an Insignificant Activity Revisions to Lists ofInsignificantActivities orEmissionLevelsILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF PROPOSED AMENDMENT

SUBPART G: EXPERIMENTAL PERMITS (Reserved) SUBPART H: COMPLIANCEPROGRAMS AND PROJECT COMPLETION SCHEDULES Section 201.241 201.242 201.243 201.244 201.245 201.246 201.247

Section 201.261 201.262 201.263 201.264 201.265

Section 201.281 201.282 201.283

Section 201.301 201.302 Contents ofComplianceProgram Contents ofProject Completion Schedule Standards for Approval Revisions Effects ofApproval Records and Reports Submission and Approval Dates SUBPART I: MALFUNCTIONS, BREAKDOWNS OR STARTUPS

Contents ofRequest for Permission to Operate During a Malfunction, Breakdown or Startup Standards for GrantingPermissionto OperateDuring a Malfunction, Breakdown or Startup Records andReports Continued Operation or Startup Prior to Granting ofOperatingPermit Effect ofGranting ofPermissionto Operate During a Malfunction, Breakdown or Startup SUBPART J: MONITORING AND TESTING

PermitMonitoring Equipment Requirements Testing Records and Reports

Records Reports SUBPART K: RECORDS AND REPORTSSection 201.401 201.402 201.403 201.404 201.405 201.406 201.407 201.408 ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF PROPOSED AMENDMENT SUBPART L: CONTINUOUS MONITORING

Continuous MonitoringRequirements Alternative Monitoring Exempt Sources Monitoring System Malfunction Excess Emission Reporting DataReduction Retention ofInformation Compliance Schedules 201.APPENDIXA 201.APPENDIXB 20l.APPENDIX C Rule into Section Table Sectioninto Rule Table Past ComplianceDates AUTHORITY: Implementing Sections 10, 39, and 39.5 and authorizedby Section 27 ofthe Environmental Protection Act [415 ILCS 5/10,27, 39, and 39.5]. SOURCE: Adopted as Chapter2: AirPollution, Part I: General Provisions, inR71-23, 4 PCB 191, filed and effective April 14, 1972; amended in R78-3 and4, 35 PCB 75 and 243, at 3 Ill. Reg. 30, p. 124, effective July28, 1979; amended inR80-5, at 7 

### TIL Reg. 1244, effectiveJanuary 21, 1983; codified at 7 Ill. Reg. 13579; amended inR82-1 (DocketA) at 10 Ill. Reg. 12628, effective July7, 1986; amended inR87-38 at 13 Ill. Reg. 2066, effective February 3, 1989; amended inR89-7(A) at 13 Ill. Reg. 19444, effectiveDecember 5, 1989; amendedinR89-7(B) at 15 Ill. Reg. 17710, effectiveNovember 26, 1991; amendedinR93-11 at 17 

### TIL Reg. 21483, effective December7, 1993; amended in R94-12 at 18 Ill. Reg. 15002, effective September 21, 1994; amended in R94-14 at 18 Ill. Reg. 15760, effective October 17, 1994; amended in R96-17 at 21 Ill. Reg. 7878, effectiveJune 17, 1997; amended inR98-13 at 22 Ill. Reg. 11451, effective June 23, 1998; amended inR98-28 at 22 Ill. Reg. 11823, effectiveJuly31, 1998; amended in R02-10 at 27 Ill. Reg. 5820, effectiveMarch21, 2003; amended inR05-19 and R05-20 at 30 Ill. Reg. 4901, effective March 3, 2006; amended inR07-19 at 3 3 Ill. Reg. 11965, effective August 6, 2009; amended inRl0-21 at 34 Ill. Reg effective

__ _ SUBPARTD: PERMIT APPLICATIONS AND REVIEWPROCESS 

### Section 201.162 Duration a) No operatingpermit shall bevalid longerthan tenffie-years or such shorter period as theAgencymayspecifyinthe operatingpermitas necessarytoILLINOIS REGISTER POLLUTION CONTROLBOARD NOTICE OF PROPOSED AMENDMENT 

### accomplishthe purposes ofthe Act and this Chapter

... unless the source is subject to: 1) Section 201.169 ofthis Subpart; or 2} 

### Section 39.5 ofthe Act, exceptfor sources exemptpursuantto subsection 1.1 ofSection 39.5. b) Applications for renewal ofan operatingpermit shall be submittedto the Agency at least 90 days priorto the expiration ofthepriorpermit, and shall conform to Sections 201.157, 201.158 and 201.159. The standards for issuance ofrenewal of operatingpermits shall be as set forth in Section 201.160. (Source: Amended at 34Ill. Reg.

__ , effective

___ ---./

# Attachment
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### Electronic Filing - Received, Clerk's Office, June 29, 2010

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF: ) ) 10-YRFEDERALLY ENFORCEABLE ) STATE OPERATING PERMITS ) ("FESOP"): AMENDMENTS TO ) 35 ILL ADM. CODE PART 201.162 ) R10-21 (Rulemaking- Air)

NOTICE TO: Dorothy Gunn, Clerk illinois Pollution Control Board State ofillinois Center 100 WestRandolph, Suite 11-500 Chicago, illinois 60601 Virginia Yang Deputy Legal Counsel illinois Dept. ofNatural Resources 524 South Second Street Springfield, illinois 62701-1787 MatthewDunn, Chief Attorney General's Office James R. Thompson Center 100 WestRandolph, 12th Floor Chicago, illinois 60601

PLEASE TAKENOTICE that I have today filed with the Office ofthePollution Control Board the TESTIMONY ofthe illinois Environmental Protection Agency a copy ofwhich is herewith served upon you.

DATED: June 29, 2010 P.O. Box 19276 Springfield, illinois 62794-9276 217/782-5544 ILLINOIS ENVIRONMENTAL PROTECTION AGENCY By: /s/ Rachel L. Doctors Assistant Counsel Division ofLegal Counsel

### Electronic Filing -Received, Clerk's Office, June 

### 29, 2010

My name is Bob Bernoteit. I have been manager ofthe manager ofthe Federally Enforceable State Operating PermitUnit in the Division ofAirPollution Control Permit Section since February, 2004. PROPOSAL DEVELOPMENT OnDecember 17, 1992, the United States Environmental Protection Agency ("USEPA") approved the provisions ofthe illinois EPA's Federally Enforceable State Operating Permit ("FESOP") program. USEPA stated that illinois EPA'sFESOP program met all five criteriafor approving a state operating permit program as part ofa State Implementation Plan ("SIP"). Specifically, the illinois EPAmust submit its permit program to USEPA for approval; terms of the permit and its renewal must belegally enforceable; the terms and conditions ofthe permit must be at least as stringent as any other applicable limitation or requirement contained in the SIP orenforceable by the SIP orwaive any requirements that are federally enforceable (e.g., standards established under section 111 or 112 ofthe Clean Air Act ("CAA'')); the limitations,**c~ntrols** and requirements in the permit must be permanent, quantifiable and otherwise enforceable as a practical matter; and the permits must be issued pursuant to public participation. USEPArestated its approval ofthe illinois EPA's FESOP program when it approved the Clean Air ActPermitProgram ("CAAPP") pursuantto Section 39.5 ofthe Act. Subsection 3.3(c) ofSection 39.5 ofthe Act, gives the illinois EPAthe authority to issueFESOPs for the purposes oflimiting a sources potential to emit pursuant to the illinois EPA's general authority to issue state permits under Section 39(a) ofthe Act. The Board adopted regulations for implementation ofissuing state air pollution control permits in 35 ill. Adm. Code 201. Section 201.162 specifies the duration that permits can be issued as either subjectto Section 201.169 (lifetime permits) orfive years. This proposal seeks to extend theterm ofState operating permits from five to ten years. This proposal does not

### Electronic Filing - Received, Clerk's Office, June 

### 29, 2010

change the term ofperpetual permits issued pursuantto Section 201.169 or CAAPP permits issued pursuantto Section 39.5 ofthe Act. PROPOSAL This proposal extends the maximum term that a FESOP may be issued from five to ten years. Currently, State operating permits, except for lifetime permits, may only beissued for five years or less. Underthe proposal, the term that a FESOP could beissued would be extended

· from five to ten years at the discretion ofthe lllinois EPA. The lllinois EPA retains the

discretion that it currently has under Section 201.162 to issue permits for a term that is shorter than the maximum. The term for CAAPP permits issued pursuantto Section 39.5 ofthe Act, except for sources exempted from CAAPP pursuantto subsection 1.1 ofSection 39.5 ofthe Act, would remain five years as required by statute. 415 ILCS 5/39.5(1.1). Owners or operators of

sources not subject to CAAPP or requiring a FESOP would remain subject to the requirements of Section 201.169, which grants permits indefinitely. That Section requires that State permits only be renewed at the request ofthe lllinois EPA or ifthe circumstances underlying the permit change.Two other states have adopted or are in the process ofadopting rules extendingthe term ofFESOPsfrom five to 10 years. The State ofIndiana received final approval oftheirrule on October 6, 2009. 74 Fed.Reg. 51240.IMPLEMENTATION The lllinois EPAhas averaged 61 newFESOP applications each year sincethe year 2000 and 66 FESOP renewal applications each year overthe last ten years. When these applications

come in and are reviewed, at the discretion ofthe lllinois EPA, the permits will be granted for a term of 1 0 years. The lllinois EPAmay choose to issue a FESOP for a term shorterthan ten years. FESOPsthat are issued for a term shorterthan ten years include situations in which the

### Electronic Filing - Received, Clerk's Office, June 29, 2010

source may have been out ofcompliance with the applicable requirements priorto issuance of the FESOP and need to perform additional performance testing to demonstrate or confirm compliance with the applicable requirements. Itis importantto note that grantingFESOPs for a longerterm will not affect the implementation ofair pollution control programs or enforcement ofair quality standards in the State oflllinois. Sources must comply with all applicable requirements ofthe Board's rules or the Act, regardless ofthe length ofa FESOP'sterm orthe timing ofits issuance. FESOPs generally contain limits on the operations ofthe source, (e.g., materials used and hours or operation), which effectively restrict the source's potential to emit. The lllinois EPA's program requires the permits to undergo public notice and be subjectto public comments. A FESOP does not impact any previously or newly applicable substantive requirements ofthe Act, the Board's rules orthe Clean Air Act ("CAA''), such as a new maximum achievable control technology standard under Section 112 ofthe CAA. Such requirements remain independently enforceable. Similarly, owners and operators ofFESOP sources will still need to meet all applicable requirements underthe Act, includingthose related to new construction. Therefore, an extension ofthe term for an initial or a renewal ofa FESOP from five to ten years does not delay an owner

or operator's obligation to comply with all applicable requirements. ECONOMIC REASONABLENESS AND TECHNICAL FEASIDILITY The entire State oflllinois will be affected, as no single region contains all FESOP

sources. The proposed regulations will affect all ofthe approximately 800 sources in lllinois that have either applied for orhave obtained a FESOP. The purpose ofthis proposal is to extend the maximum term that a FESOP may be issued from five to ten years. Currently, State operating permits, except for lifetime permits, may only be issued for five years or less. Underthe proposal, the permitterm would be extended up to ten

### Electronic Filing- Received, Clerk's Office, June 29, 2010

years at the discretion ofthe lllinois EPA. The term for CAAPP permits issued pursuant to Section 39.5 ofthe Act, except for sources exempted from CAAPP pursuantto subsection 1.1 of Section 39.5 ofthe Act would remain 5 years as required by statute. 415 ILCS 5/39.5(1.1). This proposal will have a positive economic impact on affected sources by reducing time spent on permit renewal applications. This proposal will also reduce the costs to the Illinois EPA 'associated with the time and effect required for processing these permitrenewal applications. While sources with FESOP permits represent only a small amount ofemissions in Illinois, they require a large proportion ofthe Illinois EPA's permitting resources. The reduced frequency of these renewals will provide a significant time savings for the Illinois EPA. Within five years of adoption ofthis proposal, it would be anticipated thatthe workload ofFESOP renewals would decrease by approximately ten percent. As discussed above, the proposal imposes no new regulatory requirements on affected

sources. The amendments to Section 201.162 merely extend the duration ofFESOPs. The amendments are expected to reduce administrative costs ofthe permitting process for both the affected sources and the Illinois EPA. As this proposal imposes no new requirements or costs

on affected sources, the proposal is both technically and economically feasible.

### Electronic Filing -Received, Clerk's Office, June 29, 2010

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

STATE OF ILLINOIS COUNTY OF SANGAMON

CERTIFICATE OF SERVICE ) ) ) ) 

# ss

I, the undersigned, an attorney, state that I have served electronically the attached TESTIMONY ofthe illinois Environmental Protection Agency upon the following persons: Dorothy Gunn, Clerk Illinois Pollution Control Board State ofillinois Center 100 WestRandolph, Suite 11-500 Chicago, lllinois 60601 Virginia Yang DeputyLegal Counsel illinois Dept. ofNatural Resources 524 South Second Street Springfield, illinois 62701-1787

Dated: June 29, 2010 1021 North Grand Avenue East Springfield, illinois 62794-9276 (217) 782-5544 217.782.S143 (TDD) /s/ MatthewDunn, Chief Attorney General's Office James R. Thompson Center 100 WestRandolph, 12thFloor Chicago, illinois 60601

ILLINOIS ENVIRONMENTAL PROTECTION AGENCY

Rachel L. Doctors Assistant Counsel AirRegulatory Unit Division ofLegal Counsel

# Attachment

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### Page 1 BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF:

10-YR FEDERALLY ENFORCEABLE STATE OPERATING PERMITS ("FESOP") : AMENDMENTS TO 35 ILL. ADM. CODE PART 201.162 

# Receuveo CLeRK'S OFFICE



## JUL I

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## '2 2010 STATE OF 

### ILLINOIS Pollution Control Board R10-21 ) (Rulemaking-Air) I

iJ 1: I' 

### REPORT OF PROCEEDINGS at the hearing of !i 

## il the above-entitled cause, taken before GWENDOLYN BEDFORD, a Certified Shorthand Reporter, within and for the County of Cook and State of Illinois at the 

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### Illinois Pollution Control Board, 100 West Randolph, 1 11 

### Suite 11-500, Chicago, Illinois 60601 commencing at the 

### I) hour of 12:00 p.m. on the 8th day of July, A.D., 2010. 

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## APPEARANCES: MR. CAREY ZALEWSKI MR. GARY L. BLANKENSHIP MS. KATHLEEN CROWLEY ILLINOIS POLLUTION CONTROL BOARD 100 West Randolph Suite 11-500 Chicago, Illinois 60601 Phone: 312-814-3461 appeared on behalf of the Board

MS. RACHEL DOCTORS Assistant Counsel Division of Legal Counsel Illinois Environment Protection Agency 1021 N. Grand Avenue East Springfield, Illinois 62702 Phone: 217-782-3397 appeared on behalf of the Agency

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## ALSO PRESENT:
22 

## MR. EDWIN C. BAKOWSKI
23 

## Manager, Permit Section

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## Division of Air Pollution Control' Page 3 

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### I N D E X • 2 3 

### WITNESS PAGE

• 4 

### ROBERT BENOTEIT ' 5 

### Examination by Ms. Crowley 8 11 6 

### 1: 7 ,_ 8 

### E X H I B I T 

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### DOCUMENTS MARKED FOR ID. I; 10 

### Exhibit 1 

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### MS. CROWLEY: Good afternoon. My name is ii**~- ~"** **~-~"oc-** .**-'".~".** ·"'-"'>f•**..C~P~/~.** _c;,-**~"-<'}'•'** ;;, ..· -<**~-iJ--** •. ,;:or"',**,;~· ,-;~_:_;.,-**  U

### Page 4 1 1 

### Kathleen Crowley. 

## I' The Hearing Officer assigned to this 1: I' 2 

### regulatory proceeding. This is the first of two 3 

### presently scheduled hearings being conducted by the 4 

### Illinois Pollution Control Board in the matter of 5 

### Tenured Federally Enforceable State Operating Permit, 6 

### known as Fesop, Amendments to 35 Illinois 7 

### Administrative Code Section 201.162. And that is the 8 

### Pollution Control Board Docket R10-21. 9 

### Today's Hearing Board will begin its 10 

### receipt of testimony on the merits and the economic 11 

### effects of the April 20, 2010 Regulatory Proposal 12 

### filed by the Illinois Environmental Protection Agency. 

## ( 13 

### The Agency proposal would extend from five years to 14 

### ten years. The maximum term that the Agency could 15 

### issue is a FESOP. The sole position of the air rules 16 

### to be amended is Section 201.162. 17 

### We have present today only the Court 18 

### Reporter, Board Representatives and Agency 19 

### Representatives. So we'll shorten up some of the 20 

### usual opening remarks. All hearings before the Board 21 

### are transcribed by the Court Reporter you see with us 22 

### today. All witnesses will be sworn in by the Court 23 

### Reporter prior to giving testimony. Any person may 24 

### ask questions of any witness giving testimony. Any

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 

### Page 5

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### questions that may come from me or representatives of the Board are intended not to reflect any conclusion

on the merits, but simply to provide a complete record for Board deliberation. Seated to my immediate right is Board Member, Carey Zalewski, the board member coordinating. And seated to her right is Board Member, Gary Blankenship. And at this point I'll ask you for your appearance, Miss Doctors. MS. DOCTORS: My name is Rachel Doctors representing the Illinois Environmental Protection Agency. MS. CROWLEY: Before we begin with the I

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### Agency's testimony, there is just a couple of items of 

## j information that I need to answer into the record. The 1 ': 

### Board accepted the Agency's proposal for hearing on May 6, 2010. The Board on June 17, 2010 authorized 

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### first notice publication of the Rule without comments

on the merits. This was published in the July 2, 2010 

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### Illinois Register at 35 Illinois Register 8508. The publication started a 45-day public comment under the Administrative Procedure Act. First business day after 1 

### the 45th day is August 16, 2010, which is the current close comment date.

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### (

( Page 6**1~** 

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### The first notice publication includes 2 

### the dates of today's hearing and the next hearing 3 scheduled for July 21st in Springfield. And the 4 

### publication also referenced the June 9, 2010 Hearing 5 

### Officer order setting deadlines for the prefiling of 6 

### testimony and addressing other procedural points. 7 

### On June 4, 2010 the Board submitted a 8 written request to the Department of Commerce and 9 

### Economic Opportunity known as DCEL. The Board 10 

### requested that it perform an Economic Impact Study as 11 

### provided for in Section 27 of the Environmental 12 

### Protection Act. The Board requested that DCEL provide 13 

### any response to the request on or before June 30th. 14 

### No written request has been received and no study has 15 

### been filed. 16 

### Section 27(b) requires the Board to hold 

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### a hearing on the economic impact of rules and any EelS , 18 

### submitted and on any explanation DCEL provides for not 19 

### conducting an EelS. 20 

### Section 24(b) allows the Board to 21 

### dovetail the economic impact hearing with any other 22 

### hearing. The DCEL EelS issue will be addressed at the 23 

### next hearing on July 21st, although participants here 24 

### today may address it as well if they care to. 1 i 1 ] ;**~** 

### :l 

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### Page 7 

# li The only testimony prefiled was that by '
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### IEPA's Bob Bernoteit. So we may as well begin with 3 Mr. Bernoteit then. 4 

### MS. DOCTORS: I would ask that his testimony 5 

### be entered as if read. 6 

### MS. CROWLEY: First, could we have 7 

### Mr. Bernoteit sworn as a witness. 8 

### (WITNESS SWORN) 9 

### ROBERT BERNOTEIT, 10 

### called as a witness herein, after having been first 11 

### duly sworn, was examined and testified as follows: 12 

### MS. CROWLEY: Is that acceptable to be as 13 

### read rather than delivered? 14 

### MR. BLANKENSHIP: Yes. 15 

### MS. ZALEWSKI: Yes. 16 

### MS. CROWLEY: We'll mark the testimony 17 

### submitted by Mr. Bernoteit on June 29, 2010 as Exhibit 18 

### Number 1 in this proceeding or 10-11. 19 

### (WHEREUPON Exhibit 1 was 20 

### marked for identification) 21 

### MS. DOCTORS: Would you like copies? 22 

### MS. CROWLEY: I think we all do. 23 

### MS. DOCTORS: I have one procedure thing that 24 

### I need to get on the record. 

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### MS. CROWLEY: Sure. 2 

### MS. DOCTORS: I would like to indicate at the 3 time that at the completion of this rulemaking process 4 that the Agency would be submitting its rulemaking and 5 the package S&L to the UCPA as the state rules covering 6 

### permits for the that are federally enforceable. 7 

### MS. CROWLEY: Off the record for a second. 8 

### (DISCUSSION OFF THE RECORD) 9 

### MS. DOCTORS: The Agency, if the testimony 10 

### has been accepted and filed as Exhibit 1, then we're 11 

### open for any questions that the Board may have. 12 EXAMINATION 13 BY MS. CROWLEY: 14 Q 

### Your testimony indicates, as does the 15 

### proposal, that the maximum term of the FESOP permit 16 

### would be extended from five years to ten years. 17 

### Permits that I have seen in my career with the state 18 

### have always included an expiration date. Would it be 19 

### correct to assume that these permits will also have an 20 

### expiration date listed on their face so that it knows 21 whether it has got a five-year permit or a ten-year 22 

### permit? 23 A 

### They will continue to list the expiration 24 date. The only change is the expiration date would be :



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### extended to ten years in the future rather than a 2 maximum of five years into the future. 3 Q 

### Do you have any idea how

-- well, strike 4 that. 5 

### Do you have any range of, oh, cost that 6 

### you have heard of that sources expend for engineering 7 

### and consulting and lawyer fees in applying for FESOP 8 

### renewal permits? 9 A 

### The renewal. process is a simple 10 

### straightforward process. If the source has not had any 11 

### changes or is not proposing any changes as part of the 12 

### renewal. So it is a simple two-page application form. 13 

### I would estimate that the cost to prepare such a form 14 

### would not typically extend more than $200. 15 Q 

### The type of form we have seen before where 16 

### there is a checkoff, has anything changed in the 17 

### signature and the appropriate name of company and 18 

### signing officer, et cetera? 19 A 

### That's correct. 20 Q 

### I see at the fourth page of your testimony 21 

### that you would expect that the workload of FESOP 22 renewals would increase by approximately ten percent 23 within five years of adoption of the proposal? 24 A 

### We would decrease by five percent. I 1: t: 

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### Page 10 And that

-- I misspoke. And that would in 

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### decrease processing time and manpower, et cetera, et 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 

### cetera? A 

### That's correct. Q 

### As said in the testimony. Members have any questions? MS. ZALEWSKI: I have no other questions. MR. BLANKENSHIP: No. MS. CROWLEY: Thank you very much, Mr. Bernoteit. Did you have anything else that you

wanted to present, Miss Doctors? MS. DOCTORS: That concludes the Agency's comments. I would like to thank the Board members and the Hearing Officer for their time. MS. CROWLEY: The next hearing, as I said earlier, is scheduled for July 21, 2010 in Springfield. 

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### There doesn't seem to be a substantial interest in this 1. I; 

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# lj rulemaking. In the interest of travel and economy, the

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### second hearing may be held by the board Springfield base Hearing Officer Carroll Webb. We have done that in other small rulemakings of this type. That would leave Member Zalewski to make the trip to Springfield to see you.

### 1 2 

### year. 3 

### Page 11 MS. ZALEWSKI: It is lovely this time of

MS. CROWLEY: Following the close of the 4 

### July 21st hearing, the Hearing Officer will set a date 5 

### for the close of public comment. As I said before, the 6 

### 45-day first notice comment period required by the APA 7 began on July 2nd and ends August 16th. Section 102 8 108 (b) of the Board procedural rules also provides 9 that the Board will accept comments for 14 days after 10 

### the receipt of the hearing transcript or any other date 11 set by the Hearing Officer. 12 

### The Agency is requested to check 13 calendars and be ready to suggest dates for the close 14 

### of the public comment period on or after August 16th. 15 

### We have been trying to expedite this proceeding in the 16 

### interest of saving everyone money. And again whatever 17 is a reasonable close comment period given the fact 18 that we're on summer vacation season, et cetera. 19 We'll do what we can to accommodate you. 20 

### If there is nothing else from anyone, 21 

### seeing nothing then, thank you all for attending and 22 

### have a good trip back to Springfield. Thanks a lot. 23 24 

### (WHEREUPON the hearing was

### 1 2 COUNTY OF C 0 0 

### K 3 

### Page 13 

## )ss:

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### C E R T I F I C A T E 5 

### 6 I, GWENDOLYN BEDFORD, Certified Shorthand 7 

### Reporter and Notary Public, in the City of Chicago, 8 

### County of Cook and State of Illinois, do hereby certify 9 that the above testimony was recorded stenographically 10 by me and was reduced to computer transcription under 11 my personal direction. 12 I hereunto set my hand on this 21st day of 13 July, 2010. 14 15 16 17 18 19 20 

### 21 22 23 24 

### GWENDOLYN BEDFORD, C.S.R. No. 084-003700

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## ( Page 1 

### BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF: 10-Year Federally Enforceable State Operating Permits (FESOP) Amendments to 35 Illinois Administrative Code Part 201.162 DOCKET R10-21 

### RECEIVED

CLERK'S OFFICE ' 

## JUL 2

## 62010 STATE OF IWNOIS Pollution Control 

### Board Hearing held, pursuant to notice, on Wednesday, July 21, 2010 at the hour of 1:00 p.m. at 1021 North Grand Avenue, Springfield, Illinois, before CAROL WEBB, duly appointed Hearing Officer.

L.A. REPORTING SERVICE (312)419-9292 REPORTER: LAUREL A. PATKES, CSR #084-001340**'•.-----------------------------------------------------------------~** Page 3 - 

### HEARING OFFICER WEBB: Good afternoon. My name is Carol Webb. This is the second hearing for Docket R10-21 entitled: In the · matter of 10-Year Federally Enforceable State Operating Permits (FESOP) Amendments to 35 Illinois Administrative Code Part 201.162. At this hearing, all references to

: 

### the Agency refer to the Illinois Environmental Protection Agency, and all dates refer to calendar year 2010. At today's hearing, the Board will 

# j take any testimony on the merits and economic effect 1 

### of the Agency's April 20 regulatory proposal. The · proposal would extend from five to ten years the

.· 

### maximum term for which the Agency could issue a l**~** 

### Federally Enforceable State Operating Permit known

as a FESOP. The sole provision of the air rules to 11 

## I: I 

### be amended is Section 201.162. With me today is Board Member Carrie Zalewski who is coordinating this rulemaking. The assigned hearing officer in this proceeding is Kathleen Crowley. As announced at the first hearing held on July 8th, I'm conducting this hearing in 111 2 3 4 5 6 7 8 9 10 11 12 ( '· 13 14 15 16 17 18 19 20 21 22 23 24 

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### age place of Ms. Crowley to conserve travel costs for the board. Member Zalewski, do you have any : opening remarks you would like to make? MEMBER ZALEWSKI: Just again to thank everyone for their participation. HEARING OFFICER WEBB: Thank you. At this point, I would like to ask the Agency to please make your appearance on the record. MS. DOCTORS: My name is Rachel Doctors, and I am representing the Illinois EPA in this matter. HEARING OFFICER WEBB: Thank you. Before we begin, there is some information that must be entered into the record. At the July 8th hearing, Ms. Crowley stated that the first notice proposal was published in the Illinois Register on July 2nd at 35 Illinois Register 8508. The 45-day first notice comment period required by the Administrative Procedure Act expires on August 16th. This is the first business day after the 45th day. The first notice of publication 

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### ll, included the dates of both scheduled hearings and 

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### referenced the hearing officer's June 9th order
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### setting deadlines for the prefiling of testimony and 4 

### addressing other procedural points. 5 

### On June 24th, the Board submitted a 6 

### written request to the Department of Commerce and 7 

### Economic Opportunity, known as DCEO, that it perform 8 

### an economic impact study, also known as EciS, as 

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### Section 27(b) requires the Board to 15 

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### any EciS submitted, and on any explanation DCEO 17 

### provides for not conducting an EciS. Section 27(b) 

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### allows the Board to dovetail the economic impact 19 

### hearing with any other hearing. Any DCEO hearing 20 

### issues can be addressed at today's hearing. 21 

### We'll first allow the Agency to make 

### ! 22 

### any comments or testimony followed by testimony of 23 

### anyone concerning economic effects of the proposed 24 

### rulemaking and any other matter.1 2 3 4 5 6 7 8 9 10 11 

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### Page 6 I will note for the record that no members of the public are present. No testimony or questions have been prefiled by the Agency or any other person. Does the Agency have any additional testimony or information to present in support of its proposal today? MS. DOCTORS: No, it does not. 

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### HEARING OFFICER WEBB: Thank you very . 

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### much. I 

### As I said before, DCEO has not submitted an EciS or any explanation for its ' ! 

### decision not to perform one. : Does anyone have any testimony on**~** 

### this or the economics of the proposal? I again note that there are no members of the public present who may have any comments, and there's no one other than the Agency present to make any testimony or statements.**~** 

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### set a date for the closing of post-hearing comments.**~**

## ; As stated previously, the 45-day first notice 

# : comment period required by the EPA began on ·July 2nd 

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and ends August 16th. Section 102.108(b) of the1 

### ( 2 3 4 5
6
7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 

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### Board's procedural rules also provides that the i 

### Board will accept comments for 14 days after the receipt of the hearing transcript or at any other · date set by the hearing officer. The transcript for this hearing is due by August 2nd and the 14-day due date under 

### . Section 102.108 would be August 16th. As the Board will not have sufficient time to issue an order for the August 19th Board meeting, we will set the date for the end of the comment period to August 20th. Comments must be in the Board's office by that date, and the mailbox rule of 35 Illinois Administrative Code 101.300(b) will not apply. The Board will consider any requests for extension of the comment period in light of the 1: 

### Agency's preference that the rules be adopted as

soon as possible to save renewal processing costs for both the Agency and the regulated community. Are there any other questions or 1: 

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### Seeing none, I will thank you all for ,; 

## ' your participation. Thank you very much. 11 

### (Conclusion of proceedings.) 

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### 1 STATE OF ILLINOIS ) 

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### 11 I further certify that 

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### Dated this 23rd day of July 2010. 16 17 18 

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# Attachment
8ILLINOIS POLLUTION CONTROL BOARD October 7, 2010

IN THE MATTER OF: ) ) 10-YEAR FEDERALLY ENFORCEABLE ) STATE OPERATING PERMITS (FESOP): ) AMENDMENTS TO 35 ILL. ADM. CODE ) 201.162 ) Proposed Rule. SecondNotice. R10-21 (Rulemaking -Air)

OPINION AND ORDER OF THE BOARD (by C.K. Zalewski): The Board today adopts for second notice aproposal extending the maximum term that the Illinois Environmental ProtectionAgency (Agency or IEPA) could issue a Federally Enforceable State Operating Permit (FESOP) :from five years to ten. On April 20, 2010, the Agency filed a proposal for amendments to the Board's airrules pursuant to the general rulemakings provisions ofSection 27 ofthe Illinois Environmental Protection Act (Act), 415 ILCS 5/27 (2008) and the Board's procedural rules at 35 Ill. Adm. Code 102. The soleprovision ofthe air rules to be amended is Section 201.162, codified at 3 5 Ill. Adm. Code 201.162. In aJune 17, 2010 opinion and order, to expedite this rulemaking, the Board authorized first noticepublication ofthe rules as proposed without commenting onthe merits ofthe IEPA proposal. First notice oftheproposed rules appeared in the July 2, 2010 

### Illinois Register. See 34 Ill. Reg. 8508 (July 2, 2010). Bytoday's action, the Board adopts this second-notice order, and directs that the proposed rule be submitted to the Joint Committee on Administrative Rules (JCAR) for its review underthe Administrative Procedure Act (APA), 415 ILCS 5/100 

### et. seq. (2008). The Board finds that this record demonstrates that the proposed rule ifadopted is technically feasible, economicallyreasonable, and, inthe words ofSecond 27(b) ofthe Act, will have no "adverse impact on the people ofthe state oflllinois." 415 ILCS 5/27(b) (2008). The second notice proposal contains no substantive changes :from the first notice proposal. In the opinionbelow, the Board first describes the details oftheproposal filed bythe Agency. The Board then provides the procedural history ofthe rulemaking to date, before summarizingthe testimony ofthe sole witness, Bob Bemoteit, manager ofthe Agency's FESOP unit. The Board next provides analysis and conclusion on therulemaking. Finally, the Board order directs the Clerk to file proposed amendments with the Joint Committee on Administrative Rules for second-review under the Illinois Administrative Procedure Act (APA) 

### (see 5 ILCS 100/5-40(c) (2008)).THE PROPOSAL Bywayofbackground, on December 17, 1992, the United States Environmental Protection Agency (USEPA) approved the provisions ofthe Illinois (FESOP) program as part of the State hnplementation Plan (SIP) for meeting the goals ofthe Federal Clean Air Act (CAA). USEPA found that Illinois' FESOP program met all five criteria for approving a state operating pennitprogram as part ofa SIP. Among other things, these criteria require that tenns ofthe (FESOP) permit and its renewal must be legally enforceable; the tenns and conditions ofthe permitmustbe at least as stringent as any other applicable limitation orrequirement contained inthe SIP or enforceable bythe SIP orwaive anyrequirements that are federally enforceable (e.g., standards established under section 111 or 112 ofthe Clean Air Act); the limitations, controls and requirements inthe permit mustbepennanent, quantifiable and otherwise enforceable as a practical matter; and thepermits must be issued pursuantto publicparticipation. Id. USEPA restated its approval

... when it approved the CleanAirAct Pe1mit Program ("CAAPP") pursuant to Section 39.5 ofthe Act. Subsection 3.3(c) of Section 39.5 ofthe Act, gives the Illinois EPA the authority to issue FESOPs for thepurposes oflirniting a sources potential to emitpursuant to the Illinois EPA's general authority to issue state permits under Section 39(a) ofthe Act. SR at 1-2. Board rules for issuance ofstate air pollution control permits are codified at 35 Ill. Adm. Code 201. Section 201.162 specifies the duration thatpermits canbe issued as either subject to Section 201.169 (perpetual permits) or five years. This proposal seeks to extend the term of State operatingpermits :from five to ten years. This proposal does not change the term of perpetual permits issued pursuant to Section 201.169 orCAAPP permits issued pursuantto Section 39.5 ofthe Act. SR at 2. The Agencyrelates that two other states have adopted or are in the process ofadopting rules extending the term ofFESOPs :from five to ten years; final USEPA approval for Indiana's rule was published at 74 Fed.Reg. 51240 (Oct. 6, 2009). SR at 3, and Att: A. The Agency explains that FESOP sources are located throughout the state, and that the proposed rules will affect approximately 800 sources that that have applied for orobtained FESOPs. SR at 4 and Att. B. The Agency explains that IEPA has averaged 61 new FESOP applications each year since the year 2000 and 66 FESOP renewal applications each year over the last tenyears. Ifthe proposal is adopted, when these applications come in and arereviewed, at the discretion ofthe Illinois EPA, the permits will be granted for a term oftenyears. The Illinois EPA may chooseto issue a FESOP for a term shorterthanten years. FESOPs that are issued for a term shorter than ten years include situations in which the source mayhave been out ofcompliance with the applicablerequirements prior to issuance oftheFESOP and need to perfonn additional perfonnancetesting to demonstrate or confinn compliance with the applicable requirements. SR at 3. The Agency explains that the amendments are "expectedto reduce administrative costs ofthe permittingprocess for both the affected sources and the Illinois EPA." SR at 5. The Agency states that its outreach to affected sources included e-mail in January 2010, as well as a notice on its website. TheAgency states that in response, it received three oral comments. Two ofthese supported theproposal, while one expressed a concern. PROCEDURAL HISTORY The Agency filed this proposal on April20, 2010. By order ofMay6, 2010, the Board accepted the proposal for hearing, and byorder ofJune 17, 2010, the Board authorized firstnotice publication in the 

### Illinois Register. A June 9, 2010 hearing officer order set hearings for July 8, 2010 in Chicago and July 21, 2010 in Springfield, and also set deadlines for thepre-filing oftestimony. In aletter dated June 24,2010, the Board requested the Director oftheDepartment of Commerce and Economic Opportunity (DCEO) to prepare an economic impact study (EelS) concerningthis rulemaking as required by Section 27(b) ofthe Act. 415 ILCS 5/27(b) (2008). In the letter, the Board explained the circumstances ofthe rule, the hearing schedule established, and the Board's desire not to hold a third hearing. The Boardrequested a DCEO response no later than June 30, 2010. DCEO responded in a letter dated July 19, 2010, declining the Board's request, statingthat the Department was unable to undertake the economic impact study "atthis time". First notice ofthe proposed rules appeared in the July 2, 2010 

### Illinois Register. See 34 Ill. Reg. 8508(July2, 2010). Accordingly, the 45-day APA written public commentperiod extended through August 16, 2010. The first hearing was held in Chicago on July 8, 2010, conductedbyHearing Officer Kathleen M. Crowley. Representatives from the Board and the Agency were in attendance. The Agencypresented testimony timelypre-filed onJune 29, 2010, byMr. Bob Bernoteit. Mr. Bernoteithas been the manager ofthe FESOP Unit at the Agencyin the Division ofAir Pollution Control Permit Section since 2004. This testimony was also entered into the record as Exhibit 1. 7/08110 at Tr. 7. Hearing Officer Crowley asked questions regarding listing the expiration date on the face ofthe permit, costs associated with applying for FESOP renewal permits, and the expected effect the proposal would have on the Agency's workload. 7/08/10 at Tr.8-10. The second hearing was held on July 21, 2010, in Springfield, conductedby Hearing Officer Webb 1

. Only Counsel for the Agency and representatives from the Board were present.

1Hearing Officer Crowley explained that the second hearing mightbe conductedby Springfieldbased Hearing Officer Carol Webb, to economize on Board travel expenses. 7/08/10 Tr. at 10.One ofthe specific purposes ofthe rule was to accept testimony conceming economic effects of the proposal and the DCEO's decision not to perform an EelS. No further testimony was prefiled orpresented at hearingbyanyperson, and no questions were asked. 7/08110 at Tr. 6. Section 102.108(b) ofthe Board's procedural rules also provides that the Board will accept comments for 14 days after the receipt ofthe hearing transcript, or at any other date setby the hearing officer. Based on the expected August 2, 2010 date for transcript receipt and the Board's meeting schedule, the close ofthe comment period was set for August 20,2010. 7/21/10 Tr. at 7. No post hearing comments were filed withthe Board. HEARING TESTIMONY The onlywitness that testified was Bob Bemoteit from the Agency. Mr. Bemoteithas been employed since February2004, as the manager oftheFESOP Unit in the Division ofthe Air Pollution Control Pennit Section at the Agency. Exh. 1 at 1. Mr. Bemoteittestified that the proposal extends the maximum term that a FESOP maybe issued from five to ten years and that the Illinois EPAretains the discretion that is currently under Section 201.162 to issue permits for a tenn that is shorter than the maximum tenn. Under the proposal, the term for CAAPP permits issued pursuantto Section 39.5 ofthe Act, except for sources exempted from CAAPP pursuantto subsection 1.1 ofSection 39.5 ofthe Act would remain five years as required by statute. 415 ILCS 5/39.5(1.1). Further, owners oroperators of sources not subject to CAAPP orrequiring a FESOP would remain subject to the requirements of Section 201.169, which grants permits indefinitely. Mr. Bemoteit further testified that two other states have adopted or are in the process ofadopting rules extendingthe tenn ofFESOPs from five to ten years. The State oflndianareceived final approval oftheirrule on October 6, 2009. 74 Fed. Reg. 51240. Exh. 1 at 1. Mr. Bemoteit explained that the IEPA averaged 61 new FESOP applications each year sincethe year 2000 and 66 FESOP renewal applications each year overthe last ten years. Ifthe proposal is adopted, whenthese applications comein and are reviewed, thepennits will be granted for a term ofup to ten years. The IEPA may choose to issue a FESOP for a tenn shorter than ten years. FESOPs that are issued for a term shorterthan ten years mayresult from situations in which the source mayhavebeen out ofcompliance with the applicable requirements priorto issuance ofthe FESOP and where the source needs to perform additional performance testing to demonstrate or confinn compliance with the applicablerequirements. Exh. 1 at 1-2. Mr. Bemoteit further testified that granting FESOPs for a longer tenn will not affect the implementation ofair pollution control programs or enforcement ofair quality standards inthe State ofIllinois. Sources must complywith all applicable requirements ofthe Board'srules or the Act, regardless ofthe length ofa FESOP's term ofthetime ofits issuance. Exh. 1 at 2. FESOPs generally contain limits on the operations ofthe source which effectivelyrestrict the source's potential to emit. Draft FESOP permits undergo public notice and are subject topublic comments. A FESOP does not impact any previously ornewly applicable substantive requirements ofthe Act, the Board'srules orthe CAA, such as a new maximum achievable control technology standard under Section 112 ofthe CAA. Such requirements remain independently enforceable. Similarly, owners and operators ofFESOP sources will still need to meet all applicable requirements under the Act, including those related to new construction. Therefore, Mr. Bemoteit explained, an extension ofthe term for an initial or arenewal ofa FESOP from five to ten years does not delay an owner or operator's obligationto comply with all applicable requirements. Exh. 1 at 3. Concerning economicreasonableness and technical feasibility, Mr. Bemoteittestified that the entire State ofIllinois will be affected, as no single region contains all FESOP sources. Theproposed regulations will affect all ofthe approximately 800 sources in Illinois that have either applied for orhave obtained a FESOP. Exh. 1 at 3. Mr. Bemoteitbelieves thatthis proposal will have a positive economic impact on affected sources byreducing time spent on permit renewal applications. This proposal will also reduce the costs ofthe IEPA associated with the time and effectrequired for processing these pennit renewal applications. While sources with FESOP pennits represent only a small amount of emissions in Illinois, theyrequire a largeproportion ofthe IEPA's pennittingresources. The reduced frequency oftheserenewals is expected to provide a significant time savings for the IEPA. Within five years ofadoption ofthis proposal, IEPA anticipates that the workload related to FESOP renewals will decreaseby approximately 10%. Exh. 1 at 4. In sum, Mr. Bemoteit concluded that the proposal imposes no newregulatory requirements on affected sources. The amendments to Section 201.162 merely extend the duration ofFESOPs. The amendments are expected to reduce administrative costs ofthe permitting process for both affected sources and the IEPA. As this proposal imposes no new requirements or costs on affected sources, in !EPA's opinion, the proposal is both technically and economically feasible. Exh. 1 at 4. At the first hearing, the hearing officer asked a few questions ofMr. Bemoteit. Mr. Bemoteit verified that FESOP permits will continue to listthe expiration date on the face ofthe permit, so that a source will clearlyknow the term ofthe permit issued to him. 7/8/10 Tr. at 8. As to the cost ofpreparing FESOP renewal applications, Mr. Bemoteit opined that this cost shouldbe about $200 each, sincethese are "straightforward", two-page applications. 7/8110 Tr. at 9. Ifthe proposal is adopted, the Agency expects a 5% decrease in its workload within five years, resulting in savings in processing, manpower, and so on. 7/8110 Tr. at 10. Atthe secondheating, Mr. Benoteit presented no new testimony, and no questions were asked ofhim. Mr. Bemoteit'spre-filed testimony for the first hearing was the only exhibit submittedbythe Agency inthis proceeding. DISCUSSION The facts presented here are clear and uncontested. In contrast to mostproposals filed with the Board, this rulemaking involves a single section and a single issue, posing a simple question: should the Agency have the option ofissuing FESOPs for ten years in appropriate cases? Inlight ofthe testimony and uncontroverted support ofthe change, the Board finds thatthe answer is clearly "yes." Indeed, two other states have adopted or are in the process of adopting rules extending the term ofFESOPs from five to ten years; final USEPA approval for Indiana's rule was published at 74 Fed.Reg. 51240 (Oct. 6, 2009). As described above, the Agencypresented clear and uncontested testimony from Mr. Bob Bemoteit from the Agency's Division ofthe Air Pollution Control Permit Section explaining the expected reduction ofadministrativeresources and costs to boththe affected sources with a 5% decrease ofworkload ofFESOP renewals for the Agencywithin five years ofthe adoption ofthe proposal. Accordingly, the Board finds that the facts presented in support ofthe Agency's proposal are uncontroverted and that theproposal will have a positive economic impact on affected sources byreducing time spent on permit renewal applications. The proposal will also reduce the costs to the IEPA associated with the time and resources required for processingthe numerous permit renewal applications.2 Meanwhile, the Board finds that !EPA's granting FESOPs for a longerterm will not affect the implementation ofair pollution control programs or enforcement ofair quality standards in the State ofIllinois and is compliant with all applicable federal standards. To be sure, as this proposal sunsets regulatoryprovisions, theproposal would impose no new requirements or costs on associated affected sources. The Board accordingly finds that this record demonstrates that theproposed rule ifadopted is technically feasible, economically reasonable, and, in the words ofSection 27(b) oftheAct, will have no "adverse economic impact on the people ofthe state oflllinois." 415 ILCS 5/27(b) (2008). For all ofthe foregoing reasons, the Board adopts the proposed Section 201.162 set forth below for second-notice review byJCAR under the APA. The rule text itselfis substantively unchanged since first-notice publication. 

### ORDER The Board directs the Clerkto submit the following proposed rules to the Joint Committee on Administrative Rules for its second notice review underthe APA. TITLE 35: ENVIRONMENTAL PROTECTION SUBTITLE B: AIR POLLUTION CHAPTER I: POLLUTION CONTROL BOARD SUBCHAPTER a: PERMITS AND GENERAL PROVISIONS PART 201 PERMITS AND GENERAL PROVISIONS SUBPART A: DEFINITIONS

2 The Board notes thatreduction ofthe number ofFESOP applications could potentiallyresult in reduction ofthe number ofappeals ofIEPA FESOP permitting decisions to the Board.Section 201.101 201.102 201.103 201.104

Section 201.121 201.122 201.123 201.124 201.125 201.126

Section 201.141 201.142 201.143 201.144 201.146 201.147 201.148 201.149 201.150 201.151

Section 201.152 201.153 201.154 201.155 201.156 201.157 201.158 201.159 201.160 201.161 201.162 201.163 Other Definitions Definitions Abbreviations and Units Incorporations by Reference SUBPART B: GENERAL PROVISIONS

Existence ofPermitNo Defense ProofofEmissions Burden ofPersuasion Regarding Exceptions Annual Report Severability Repealer SUBPART C: PROHIBITIONS

Prohibition ofAirPollution Construction PermitRequired Operating Permits for New Sources Operating Pennits for Existing Sources Exemptions from State Permit Requirements Former Permits OperationWithout Compliance Program and Project Completion Schedule Operation During Malfunction, Breakdown or Startups Circumvention Design ofEffluent Exhaust Systems SUBPART D: PERMIT APPLICATIONS AND REVIEW PROCESS

Contents ofApplication for Construction Permit Incomplete Applications (Repealed) Signatures (Repealed) Standards for Issuance (Repealed) Conditions Contents ofApplication for Operating Pennit Incomplete Applications Signatures Standards for Issuance Conditions Duration Joint Construction and Operating Permits201.164 201.165 201.166 201.167 201_.168 201.169 201.170 Design Criteria Hearings Revocation Revisions to Pennits Appeals from Conditions Special Provisions for Certain Operating Permits Portable Emission Units SUBPART E: SPECIAL PROVISIONS FOR OPERATING PERMITS FOR CERTAIN SMALLER SOURCES Section 201.180 201.181 201.187

Section 201.207 201.208 201.209 201.210 201.211 201.212 Applicability (Repealed) Expiration and Renewal (Repealed) Requirement for a Revised Permit (Repealed) SUBPART F: CAAPP PERMITS Applicability Supplemental Information Emissions ofHazardous AirPollutants Categories ofInsignificant Activities orEmission Levels Application for Classification as an Insignificant Activity Revisions to Lists ofInsignificantActivities orEmission Levels SUBPART G: EXPERIMENTAL PERMITS (Reserved) SUBPART H: COMPLIANCE PROGRAMS AND PROJECT COMPLETION SCHEDULES Section 201.241 201.242 201.243 201.244 201.245 201.246 201.247

Section 201.261 Contents ofCompliance Program Contents ofProject Completion Schedule Standards for Approval Revisions Effects ofApproval Records and Reports Submission and Approval Dates SUBPART I: MALFUNCTIONS, BREAKDOWNS OR STARTUPS

Contents ofRequest for Permissionto Operate During a Malfunction, Breakdown or Startup201.262 201.263 201.264 201.265

Section 201.281 201.282 201.283

Section 201.301 201.302

Section 201.401 201.402 201.403 201.404 201.405 201.406 201.407 201.408 Standards for Granting Permissionto Operate During a Malfunction, Breakdown or Startup Records and Reports Continued Operation or Startup Priorto Granting ofOperating Pennit Effect ofGranting ofPermission to Operate During a Malfunction, Breakdown or Startup SUBPART J: MONITORING AND TESTING

Pennit Monitoring Equipment Requirements Testing Records and Reports

Records Reports SUBPART K: RECORDS AND REPORTS

SUBPART L: CONTINUOUS MONITORING

Continuous Monitoring Requirements Altemative Monitoring Exempt Sources Monitoring System Malfunction Excess Emission Reporting Data Reduction Retention ofInfonnation Compliance Schedules 201.APPENDIX A Rule into SectionTable 201.APPENDIX B Section into Rule Table 201.APPENDIX C Past Compliance Dates AUTHORITY: Implementing Sections 10, 39, and 39.5 and authorizedby Section 27 ofthe Environmental ProtectionAct [415 ILCS 5/10,27,39, and 39.5]. SOURCE: Adopted as Chapter 2: Air Pollution, Part I: General Provisions, inR71-23, 4 PCB 191, filed and effective April14, 1972; amended in R78-3 and 4, 35 PCB 75 and 243, at 3 Ill. Reg. 30, p. 124, effective July 28, 1979; amended in R80-5, at 7 Ill. Reg. 1244, effective January 21, 1983; codified at 7 Ill. Reg. 13579; amended in R82-1 (Docket A) at 10 Ill. Reg. 12628, effective July 7, 1986; amended inR87-38 at 13 Ill. Reg. 2066, effective February 3, 1989; amended in R89-7(A) at 13 Ill. Reg. 19444, effective December 5, 1989; amended in R89-7(B) at 15 Ill. Reg. 17710, effective November 26, 1991; amended in R93-11 at 17 Ill. Reg. 21483,effective December 7, 1993; amended in R94-12 at 18 Ill. Reg. 15002, effective September21, 1994; amended in R94-14 at 18 Ill. Reg. 15760, effective October 17, 1994; amended in R96-17 at 21 Ill..Reg. 7878, effective June 17, 1997; amended in R98-13 at 22 Ill. Reg. 11451, effective June 23, 1998; amended in R98-28 at 22 Ill. Reg. 11823, effective July 31, 1998; amended in R02-10 at 27 Ill. Reg. 5820, effective March 21, 2003; amended in R05-19 and R05-20 at 30 Ill. Reg. 4901, effective March 3, 2006; amended in R07-19 at 33 Ill. Reg. 11965, effective August 6, 2009; amended in R1 0-21 at 34 Ill. Reg. , effective

__ _ SUBPART D: PERMIT APPLICATIONS AND REVIEW PROCESS Section 201.162 Duration a) No operatingpermit shall bevalid longer than tenfi.¥e-years or such shorter period as the Agencymay specifyinthe operatingpennit as necessaryto accomplishthe purposes ofthe Act and this Chapter,_ unless the source is subject to: 1) Section 201.169 ofthis Subpart,;_or 2) Section 39.5 ofthe Act, except for sources exemptpursuant to subsection H ofSection 39.5(1.1). b) Applications for renewal ofan operatingpermit shall be submitted to the Agency at least 90 days priorto the expiration ofthe prior permit, and shall confonn to Sections 201.157, 201.158 and 201.159. The standards for issuance ofrenewal of operatingpennits shall be as set forth in Section 201.160. (Source: Amended at 34 Ill. Reg.

__ , effective ) IT IS SO ORDERED. I, John T. Therriault, Assistant Clerk ofthe Illinois Pollution Control Board, certifythat the Board adopted the above opinion and order on October 7, 2010 by a vote of5-0.

John T. Therriault, Assistant Clerk Illinois Pollution Control Board

# Attachment

9

### JOINTCOMMITTEE ON ADMINISTRATIVERULES ILLINOIS GENERAL ASSEMBLY

. CO-CHAIR: ' MAGGIE CROTTY CO-CHAIR: REP. ANGELO 'SKIP' SAVIANO EXECUTIVE DIRECTOR: VICKI THOMAS

Tanner Girard, Chairman Pollution Control Board ]3J11eS R. Thompson Center 100 W. Randolph, Suite 11-500 Chicago, Illinois 60601 Dear Chairman Girard: 700 STRATION BUILDING SPRINGFIELD, ILLINOIS 62705 217/785-2254 November 16, 2010 SEN. J. BRADLEY BUR2YNSKI SEN. RANDALL HULTGREN SEN. MATIIE HUt•lTER SEN. DAN RUTHERFORD SEN. IRA SILVERSTEIN REP. JOHN FRITCHEY REP. LOU LANG REP. DAVID MILLER REP. DONALD MOFFITI REP.**nv~>toiVII"r.**

This is to notify you that JCAR considered the following proposed rulemakings at its 11/16/10 meeting: General Provisions (35 ill. Adm. Code 101) 34 Ill. Reg. 8500

- 7/2110 Permits and General Provisions (35 Ill. Adm. Code 201) 34 Ill. Reg. 8508-7/2110 If your agency has agreed to any substantive modifications during its discussions with JCAR, they are described in the "Agreements" attached to the certification. Based on these agreements, as well as the other responses you have provided the Committee during the review of these rulemakings, JCAR has determined that No Objection will be issued. Enclosed you will find formal certification ofthis action. These rulemakings maynowbe adopted upon filing with the Office ofthe SecretaryofState. Please note that the fact that the Committee has not objected to these rulemakings does not necessarilyconstitute approval, expressed orimplied, ofthe substance oftherulemakings. Thank you for the cooperation your agencyhas shownduring ourreview ofthese issues. Sincerely, )

## ,/;J;~lfj~ SenatorMaggie Crotty Co-Chairman SMC:RBH:DC:rm cc: Marie Tipsord Kathleen Crowley En c.CO-CHAIR: SEN. MAGGIE CROTTY CO-CHAIR: REP. ANGELO "SKIP• SAVIANO EXECUTIVE DIRECTOR: VICKI THOMAS 

### JOINTCOMMITTEE ON ADMINISTRATIVERULES ILLINOIS GENERAL ASSEMBLY

700 STRATTON BUILDING SPRINGFIELD, ILUNOIS 62706 217/785-2254 JOINT COMMITTEE ON ADMINISTRATIVE RULES CERTIFICATION OF NO OBJECTION TO PROPOSED RULEMAKING SEN. J. BRADLEY BURZVNSI".,l SEN. RANDALL HULT<tAEN ' SEN. MATTIE HUNTER SEN. DAN RUTHERFORD SEN. IRA SILVERSTEIN REP. JOHN FRITCHEY REP. LOU LANG REP. DAVID MILLER REP. DONALD MOFFITT REP. ROSEMARY MULLIGAN

This is to certify that the Joint Committee on Administrative Rules, at its 11/16/10 meeting, considered Permits and General Provisions (35 Ill. Adm. Code 201), proposed by the Pollution Control Board and published in the 7/2/10 issue ofthe Illinois Register. After consideration, and based upon the agreements, if any, for modification ofthe rulemaking made by the agency and attached to this document, the Committee determined that no Objection will be issued to the above-mentioned rulemaking.

November 16,2010

Attachments: None Vicki Thomas Executive DirectorCO-CHAIR:

K K S5,.. MAGGIE CROTTY CO-CHAIR: REP. ANGELO "SKIP" SAVIANO EXECUTIVE DIRECTOR: VICKITHOMAS 

### JOINTCOMMITTEE ON ADMINISTRATIVERULES ILLINOIS GENERAL ASSEMBLY

700 STRATTON BUILDING SPRINGFIELD, ILLINOIS 62706 217/785-2254 JOINT COMMITTEE ON ADMINISTRATIVE RULES CERTIFICATION OF NO OBJECTION TO PROPOSED RULEMAK.ING SEN. J. BRADLEY BUR2YNSKI SEN. RANDALL HULTGREN SEN. MATTIE HUNTER SEN. DAN RUTHERFORD SEN. IRA SILVERSTEIN REP. JOHN FRITCHEY REP. LOU LANG REP. DAVID MILLER REP. DONALD MOFFITT REP. ROSEMARY MULLIGAN

This is to certify that the Joint Committee on Administrative Rules, at its 11116/10 meeting, considered General Provisions (35 Ill. Adm. Code 101), proposed bythe Pollution Control Board and published in the 7/2/10 issue ofthe Illinois Register. After consideration, and based upon the agreements, ifany, for modification ofthe rulemaking made by the agency and attached to this document, the Committee determined that no Objection will be issued to the above-mentioned rulemaking.

November 16,2010

# ~____...-r-f 1f[ki Thomas Executive Director

Attachments: None

# Attachment
10ILLINOIS POLLUTION CONTROL BOARD November 18,2010

IN THE MATTER OF: ) ) 10-YEARFEDERALLY ENFORCEABLE ) STATE OPERATING PERMITS (FESOP): ) AMENDMENTS TO 35 ILL. ADM. CODE ) 201.162 ) Adopted Rule. Final Opinion and Order. R10-21 (Rulemaking -Air)

OPINION AND ORDER OF THE BOARD (by C.K. Zalewski): The Board today adopts amendments to the air rules extending the maximum tenn that the Illinois Environmental Protection Agency (Agency or IEPA) can issue a Federally Enforceable State Operating Permit (FESOP) from five years to ten. On April 20, 2010, the Agency filed a proposal for amendments to the Board's air rules pursuant to the general rulemakings provisions ofSection 27 ofthe Illinois Enviromnental Protection Act (Act), 415 ILCS 5/27 (2008) and the Board's procedural rules at 35 Ill. Adm. Code 102. The soleprovision ofthe airrules to be amended is Section 201.162, codified at 35 Ill. Adm. Code 201.162. The Board finds that this record demonstrates that the adopted rule is technically feasible, economicallyreasonable, and, inthe words ofSecond 27(b) ofthe Act, will have no "adverse impact on the people ofthe state ofIllinois." 415 ILCS 5/27(b) (2008). In a June 17, 2010 opinion and order, to expeditethis rulemaking, the Board authorized first noticepublication ofthe rules as proposed without commenting onthe merits ofthe IEPA proposal. First notice ofthe proposed rules appeared in the July 2, 2010 

### Illinois Register. See 34 Ill. Reg. 8508 (July 2, 2010). No comments were received during the first notice period. In its October 7, 2010 second notice opinion and order, the Boardmade no changes to the rule as proposed. As required underthe Administrative Procedure Act (APA), 415 ILCS 5/100 

### et. seq. (2008), the Joint Committee on Administrative Rules (JCAR) reviewed the rule at its November 18,2010meeting. JCAR voted a certificate ofno objection, and suggested no changes. In the opinionbelow, the Board first describes the details ofthe proposal filed bythe Agency. The Board then provides the procedural history ofthe rulemaking to date, before summarizingthe testimony ofthe sole witness, Bob Bemoteit, manager ofthe Agency's FESOP unit. The Board next provides analysis and conclusion on therulemaking. Finally, the Board order directs the Clerkto file the adopted amendments with the Secretary ofState, to become effective upon filing.., 2
THE PROPOSAL Byway ofbackground, on December 17, 1992, the United States Environmental Protection Agency (USEPA) approved the provisions ofthe Illinois (FESOP) program as part of the State hnplementation Plan (SIP) for meeting the goals ofthe Federal CleanAirAct (CAA). USEPA found that Illinois' FESOP program met all five crite1ia for approving a state operating pennitprogram as part ofa SIP. Among otherthings, these criteriarequire that tenns ofthe (FESOP) permit and its renewal mustbe legally enforceable; the tenns and conditions ofthe permitmustbe at least as stringent as any other applicable limitation orrequirement contained inthe SIP or enforceablebythe SIP or waive anyrequirements that are federally enforceable (e.g., standards established under section 111 or 112 ofthe Clean Air Act); the limitations, controls and requirements in the pennitmustbe permanent, quantifiable and otherwise enforceable as apractical matter; and the permits mustbe issued pursuant to public participation. !d. USEPA restated its approval

... when it approved the CleanAirAct Permit Program ("CAAPP") pursuant to Section 39.5 oftheAct. Subsection 3.3(c) of Section 39.5 ofthe Act, gives the Illinois EPA the authority to issue FESOPs for thepurposes oflimiting a sources potential to emitpursuant to the Illinois EPA's general authority to issue statepermits under Section 39(a) ofthe Act. SR at 1-2. Boardrules for issuance ofstate air pollution control permits are codified at 35 Ill. Adm. Code 201. Section 201.162 specifies the duration that permits canbe issued as either subject to Section 201.169 (perpetual permits) or five years. This proposal seeks to extend the term of State operatingpennits from five to ten years. This proposal does not change the tenn of perpetual pennits issued pursuant to Section 201.169 or CAAPP pennits issuedpursuant to Section 39.5 ofthe Act. SR at 2. ' The Agencyrelates that two other states have adopted or are in theprocess ofadopting rules extending the term ofFESOPs from five to ten years; final USEPA approval for Indiana's rule was published at 74 Fed.Reg. 51240 (Oct. 6, 2009). SR at 3, and Att. A. The Agency explains that FESOP sources are located throughout the state, and that the proposed rules will affect approximately 800 sources that that have applied for or obtained FESOPs. SR at 4 and Att. B. The Agency explains that IEPA has averaged 61 new FESOP applications each year since the year 2000 and 66 FESOP renewal applications each year over the last ten years. Ifthe proposal is adopted, when these applications come in and are reviewed, at the discretion ofthe Illinois EPA, the pennits will be granted for a term often years. The Illinois EPA may chooseto issue a FESOP for aterm shorterthan ten years. FESOPs that are issued for a term shorter than ten years include situations in which the source mayhave been out ofcompliance with the applicable requirements priorto issuance ofthe3 FESOP and need to perfonn additional performance testing to demonstrate or confinn compliancewith the applicable requirements. SR at 3. The Agency explains that the amendments are "expected to reduce administrative costs ofthe pennittingprocess for both the affected sources and the Illinois EPA." SR at 5. The Agency states that its outreach to affected sources included e-mail in January 2010, as well as anotice on its website. The Agency states that in response, itreceived three oral comments. Two ofthese supported theproposal, while one expressed a concern. PROCEDURAL HISTORY The Agency filed this proposal on April20, 2010. Byorder ofMay 6, 2010, the Board accepted the proposal for hearing, and by order ofJune 17, 2010 the Board authorized firstnotice publication in theIllinois Register. A June 9, 2010 hearing officer order set hearings for July 8, 2010 in Chicago and July 21,2010 in Springfield, and also set deadlines for the pre-filing oftestimony. In aletter dated June 24, 2010, the Board requested the Director ofthe Department of Cmmnerce and Economic Opportunity (DCEO) to prepare an economic impact study (EelS) concerningthis rulemaking as required by Section 27(b) ofthe Act. 415 ILCS 5/27(b) (2008). In the letter, the Board explained the circumstances ofthe rule, the hearing schedule established, and the Board's desire not to hold a third hearing. The Board requested a DCEO response no later than June 30,2010. DCEO responded in a letter dated July 19,2010, declining the Board's request, stating that the Department was unable to undertake the economic impact study "at this time". First notice ofthe proposed rules appeared in the July 2, 2010 Illinois Register. See 34 Ill. Reg. 8508 (July 2, 2010). Accordingly, the 45-dayAPA written public commentperiod extended through August 16, 2010. The first hearing was held in Chicago on July 8, 2010, conductedbyHearing Officer Kathleen M. Crowley. Representatives from the Board and the Agency were in attendance. The Agency presented testimony timelypre-filed onJune 29, 2010 by Mr. Bob Bernoteit. Mr. Bernoteithas been the manager ofthe FESOP Unit at the Agency inthe Division ofAir Pollution Control Pennit Section since 2004. This testimony was also entered into the record as Exhibit 1. 7/08/10 at Tr. 7. Hearing Officer Crowley asked questions regarding listing the expiration date on the face ofthe pennit, costs associated with applying for FESOP renewal permits, and the expected effect the proposal would have on the Agency's workload. 7/08110 at Tr. 8-10. The second hearing was held on July 21,2010 in Springfield, conducted byHearing Officer Webb 1• Only Counsel for the Agency and representatives from the Board were present.

1Hearing Officer Crowley explained that the second hearing mightbe conducted by Springfieldbased Hearing Officer Carol Webb, to economize on Board travel expenses. 7/08/10 Tr. at 10.

# . ' 4 One ofthe specific purposes oftherule was to accept testimony concerning economic effects of the proposal and the DCEO's decision not to perfonn an EelS. No further testimony was prefiled or presented at hearingbyany person, and no questions were asked. 7/08110 at Tr. 6. Section 102.108(b) ofthe Board's procedural rules also provides that the Board will accept comments for 14 days after the receipt ofthe hearing transcript, or at any other date setby the hearing officer. Based on the expected August 2, 2010 date for transcript receipt and the Board's meeting schedule, the close ofthe comment period was set for August 20,2010. 7/21110 Tr. at 7. No post hearing comments were filed with the Board. In its October 7, 2010 second notice opinion and order, the Board made no changes to the rule as proposed. JCAR reviewed the rule at its November 18, 2010 meeting. JCAR voted a certificate ofno objection, and suggested no changes. Accordingly, the Board adopts as a final rule, without change, the amendments as proposed at second notice. HEARING TESTIMONY The only witness that testified was Bob Bemoteit from the Agency. Mr. Bemoteithas been employed since February 2004 as the manager ofthe FESOP Unit in the Division ofthe Air Pollution Control Permit Section at the Agency. Exh. 1 at 1. Mr. Bemoteittestified that the proposal extends the maximum term that a FESOP maybe issued from five to ten years and that the Illinois EPA retains the discretion that is currently under Section 201.162 to issue permits for a tenn that is shorterthan the maximum term. Under the proposal, the tenn for CAAPP permits issued pursuant to Section 39.5 ofthe Act, except for sources exempted from CAAPP pursuant to subsection 1.1 ofSection 39.5 ofthe Act would remain five years as required by statute. 415 ILCS 5/39.5(1.1). Further, owners or operators of sources not subject to CAAPP orrequiring a FESOP would remain subject to the requirements of Section 201.169, which grants pennits indefinitely. Mr. Bemoteit further testified that two other states have adopted or are in the process ofadoptingrules extending the tenn ofFESOPs from five to ten years. The State oflndianareceived final approval oftheirrule on October 6, 2009. 74 Fed. Reg. 51240. Exh. 1 at 1. Mr. Bemoteit explained that the IEPA averaged 61 new FESOP applications each year since the year 2000 and 66 FESOP renewal applications each year overthe last ten years. Ifthe proposal is adopted, when these applications come in and are reviewed, the pennits will be granted for aterm ofup to ten years. The IEPA may choose to issue a FESOP for a term shorter than ten years. FESOPs that are issued for a term shorter than ten years mayresult from situations in which the source mayhavebeen out ofcompliance with the applicablerequirements prior to issuance ofthe FESOP and where the source needs to perform additional performance testing to demonstrate or confirm compliancewiththe applicable requirements. Exh. 1 at 1-2. Mr. Bemoteit further testified that granting FESOPs for alonger term will not affect the implementation ofair pollution control programs or enforcement ofair quality standards in the5
State ofIllinois. Sources must comply with all applicable requirements ofthe Board'srules or the Act, regardless ofthe length ofa FESOP's tenn ofthe time ofits issuance. Exh. 1 at 2. FESOPs generally contain limits on the operations ofthe source which effectivelyrestrict the source's potential to emit. Draft FESOP pennits undergo public notice and are subject to public comments. A FESOP does not impact any previously or newly applicable substantive requirements ofthe Act, the Board'srules or the CAA, such as a new maximum achievable control technology standardunder Section 112, ofthe CAA. Suchrequirements remain independently enforceable. Similarly, owners and operators ofFESOP sources will still need to meet all applicable requirements underthe Act, including those related to new construction. Therefore, Mr. Bernoteit explained, an extension ofthe term for an initial or a renewal ofa FESOP from five to ten years does not delay an owner oroperator's obligation to comply with all applicable requirements. Exh. 1 at 3. Concerning economic reasonableness and technical feasibility, Mr. Bernoteit testified thatthe entire State ofIllinois will be affected, as no single region contains all FESOP sources. The proposed regulations will affect all ofthe approximately 800 sources in Illinois thathave either applied for orhave·obtained a FESOP. Exh. 1 at 3. Mr. Bernoteitbelieves that this proposal will have a positive economic impact on affected sources byreducing time spent onpermitrenewal applications. This proposal will also reduce the costs ofthe iEPA associated with the time and effect required for processingthesepermit renewal applications. While sources with FESOP permits represent only a small amount of emissions in Illinois, theyrequire a large proportion ofthe IEPA's pennittingresources. The reduced frequency ofthese renewals is expected to provide a significant time savings for the IEPA. Within five years ofadoption ofthis proposal, IEPA anticipates that the workload related to FESOP renewals will decrease by approximately ten percent. Exh. 1 at 4. In sum, Mr. Bernoteit concluded that the proposal imposes no newregulatory requirements on affected sources. The amendments to Section 201.162 merely extend the duration ofFESOPs. The amendments are expected to reduce administrative costs ofthe permittingprocess for both affected sources and the IEPA. As this proposal imposes no new requirements or costs on affected sources, in !EPA's opinion, theproposal is bothtechnically and economicallyfeasible. Exh. 1 at 4. Atthe first hearing, the hearing officer asked a few questions ofMr. Bemoteit. Mr. Bernoteitverified that FESOP pennits will continue to list the expiration date on the face ofthe pennit, so that a source will clearlyknow the term ofthepermitissued to him. 7/8/10 Tr. at 8. As to the cost ofpreparing FESOP renewal applications, Mr. Bemoteit opined that this cost should be about $200 each, since these are "straightforward", 2-page applications. 7/8110 Tr. at 9. Iftheproposal is adopted, the Agency expects a five percent decrease in its workload within five years, resulting in savings inprocessing, manpower, and so on. 7/8/10 Tr. at 10. Atthe second hearing, Mr. Benoteitpresented no new testimony, and no questions were asked ofhim. Mr. Bemoteit's pre-filed testimony for the first hearing was the only exhibit submittedbythe Agencyin this proceeding.6 DISCUSSION The facts presented here are clear and uncontested. In contrast to most proposals filed with the Board, this rulemaking involves a single section and a single issue, posing a simple question: should the Agencyhave the option ofissuing FESOPs for ten years in appropriate cases? In light ofthe testimony and uncontroverted support ofthe change, the Board finds that the answer is clearly "yes." Indeed, two other states have adopted or are in the process of adopting rules extending the tenn ofFESOPs from five to ten years; final USEPA approval for Indiana's rule was published at 74 Fed.Reg. 51240 (Oct. 6, 2009). As described above, the Agencypresented clear and uncontested testimony from Mr. Bob Bernoteit from the Agency's Division ofthe Air Pollution Control Pennit Section explaining the expected reduction ofadministrative resources and costs to both the affected sources with a five percent decrease ofworkload ofFESOP renewals for the Agencywithin five years ofthe adoption ofthe proposal. Accordingly, the Board finds that the facts presented in support ofthe adopted rule is uncontroverted. The adopted rules will have a positive economic impact on affected sources by reducing time spent onpermitrenewal applications. The adopted rules will also reduce the costs to the IEPA associated withthe time and resources required for processing the numerous permit renewal applications.2 Meanwhile, the Board finds that !EPA's granting FESOPs for a longer term will not affect the implementation ofair pollution control programs or enforcement ofair quality standards in the State ofIllinois and is compliant with all applicable federal standards. The Board accordingly finds that this record demonstrates that the adopted rule is technically feasible, economicallyreasonable, and, inthe words ofSection 27(b) ofthe Act, will have no "adverse economic impact on the people ofthe state oflllinois." 415 ILCS 5/27(b) (2008). For all ofthe foregoing reasons, the Board adopts as a final rule the amendments to Section 201.162 set forth below. ORDER The Board directs the Clerk to submit the following adoptedrules to the Secretary of State for filing, to become effective upon filing: TITLE 35: ENVIRONMENTAL PROTECTION SUBTITLE B: AIR POLLUTION CHAPTER I: POLLUTION CONTROL BOARD SUBCHAPTER a: PERMITS AND GENERAL PROVISIONS PART 201

2 The Board notes that reduction ofthenumber ofFESOP applications could potentiallyresult in reduction ofthe number ofappeals ofIEPA FESOP permitting decisions to the Board.Section 201.101 201.102 201.103 201.104

Section 201.121 201.122 201.123 201.124 201.125 201.126

Section 201.141 201.142 201.143 201.144 201.146 201.147 201.148 201.149 201.150 201.151

Section 201.152 201.153 201.154 201.155 201.156 201.157 201.158 201.159 201.160 7
PERMITS AND GENERAL PROVISIONS

Other Definitions Definitions SUBPART A: DEFINITIONS

Abbreviations and Units Incorporations by Reference SUBPART B: GENERAL PROVISIONS

Existence ofPermit No Defense ProofofEmissions Burden ofPersuasion Regarding Exceptions Annual Report Severability Repealer SUBPART C: PROHIBITIONS

Prohibition ofAir Pollution Construction PennitRequired Operating Permits for New Sources Operating Permits for Existing Sources Exemptions :from State Pennit Requirements Former Permits OperationWithout Compliance Program and Project Completion Schedule Operation DuringMalfunction, Breakdown or Startups Circumvention Design ofEffluent Exhaust Systems SUBPART D: PERMIT APPLICATIONS AND REVIEW PROCESS

Contents ofApplication for Construction Permit Incomplete Applications (Repealed) Signatures (Repealed) Standards for Issuance (Repealed) Conditions Contents ofApplication for Operating Permit Incomplete Applications Signatures Standards for Issuance201.161 201.162 201.163 201.164 201.165 201.166 201.167 201.168 201.169 201.170 Conditions Duration 8

Joint Construction and Operating Pennits Design Criteria Hearings Revocation Revisions to Pennits Appeals from Conditions Special Provisions for Certain Operating Pennits Portable Emission Units SUBPART E: SPECIAL PROVISIONS FOR OPERATING PERMITS FOR CERTAIN SMALLER SOURCES Section 201.180 201.181 201.187

Section 201.207 201.208 201.209 201.210 201.211 201.212 Applicability (Repealed) Expiration and Renewal (Repealed) Requirement for a Revised Permit (Repealed) SUBPART F: CAAPP PERMITS Applicability Supplemental Infonnation Emissions ofHazardous'AirPollutants Categories ofInsignificant Activities orEmission Levels Application for Classification as an Insignificant Activity Revisions to Lists ofInsignificantActivities orEmission Levels SUBPART G: EXPERIMENTAL PERMITS (Reserved) SUBPART H: COMPLIANCE PROGRAMS AND PROJECT COMPLETION SCHEDULES Section 201.241 201.242 201.243 201.244 201.245 201.246 201.247

Section Contents ofCompliance Program Contents ofProject Completion Schedule Standards for Approval Revisions Effects ofApproval Records and Reports Submission and Approval Dates SUBPART I: MALFUNCTIONS, BREAKDOWNS OR STARTUPS201.261 201.262 201.263 201.264 201.265

Section 201.281 201.282 201.283

Section 201.301 201.302

Section 201.401 201.402 201.403 201.404 201.405 201.406 201.407 201.408 9
Contents ofRequest for Permission to Operate Dming a Malfunction, Breakdown or Startup Standards for Granting Pennissionto Operate During a Malfunction, Breakdown or Startup Records and Reports Continued Operation or Startup Prior to Granting ofOperating Permit Effect ofGranting ofPermissionto Operate During a Malfunction, Breakdown or · Startup SUBPART J: MONITORING AND TESTING

Pennit Monitoring Equipment Requirements Testing Records and Reports

Records Reports SUBPART K: RECORDS AND REPORTS

SUBPART L: CONTINUOUS MONITORING

Continuous Monitoring Requirements Alternative Monitoring Exempt Sources Monitoring System Malfunction Excess Emission Reporting Data Reduction Retention ofInfom1ation Compliance Schedules 201.APPENDIX A 201.APPENDIX B 201.APPENDIX C Rule into Section Table Section into Rule Table Past Compliance Dates AUTHORITY: Implementing Sections 10, 39, and 39.5 and authorized by Section 27 ofthe Environmental Protection Act [415 ILCS 5110,27, 39, and 39.5]. SOURCE: Adopted as Chapter 2: Air Pollution, Part I: General Provisions, inR71-23, 4 PCB 191, filed and effective April 14, 1972; amended in R78-3 and 4, 35 PCB 75 and 243, at 3 Ill. Reg. 30, p. 124, effective July 28, 1979; amended in R80-5, at 7 Ill. Reg. 1244, effective January 21, 1983; codified at 7 Ill. Reg. 13579; amended inR82-1 (Docket A) at 10 Ill. Reg. 12628, effective July 7, 1986; amended in R87-38 at 13 Ill. Reg. 2066, effective February 3, 1989;10 amended in R89-7(A) at 13 Ill. Reg. 19444, effective December 5, 1989; amended in R89-7(B) at 15 Ill. Reg. 17710, effectiveNovember26, 1991; amendedinR93-11 at 17 Ill. Reg. 21483, effective December 7, 1993; amended in R94-12 at 18 Ill. Reg. 15002, effective September 21, 1994; amended in R94-14 at 18 Ill. Reg. 15760, effective October 17, 1994; amended in R96-17 at 21 Ill. Reg. 7878, effective June 17, 1997; amep.ded in R98-13 at 22 Ill. Reg. 11451, effective June 23, 1998; amended in R98-28 at 22 Ill. Reg. 11823, effective July 31, 1998; amended in R02-10 at 27 Ill. Reg. 5820, effective March 21, 2003; amended in R05-19 and R05-20 at 30 Ill. Reg. 4901, effective March 3, 2006; amended in R07-19 at 33 Ill. Reg. 11965, effective August 6, 2009; amended in R10-21 at 34 Ill. Reg , effective SUBPART D: PERMIT APPLICATIONS AND REVIEW PROCESS Section 201.162 Duration a) No operatingpermit shall bevalid longerthan tenWffl-years or such shorter period as the Agencymay specifyinthe operating pennit as necessaryto accomplish the purposes ofthe Act and this Chapter,_ unless the source is subject to: 

### D. Section 201.169 ofthis Subpart;_or 2) Section 39.5 ofthe Act, except for sources exempt pursuant to subsection +:+-efSection 39.5(1.1). b) Applications for renewal ofan operatingpennit shall be submitted to the Agency at least 90 days priorto the expiration ofthepriorpermit, and shall confonn to Sections 201.157, 201.158 and 201.159. The standards for issuance ofrenewal of operatingpermits shall be as set forth in Section 201.160. (Source: Amended at 34 Ill. Reg. , effective ) IT IS SO ORDERED. I, John T. Therriault, Assistant Clerk ofthe Illinois Pollution Control Board, certifythat the Board adopted the above opinion and order onNovember 18, 2010 by a vote of4-0.

John T. Therriault, Assistant Clerk Illinois Pollution Control Board

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## OFFICE OF THE SECRETARY OF STATE JESSE WHITE • Secretary ofState

December 13, 2010

POLLUTION CONTROL BOARD JOHN THERRlAULT ASSISTANT CLERK 100 W RANDOLPH ST, STE 11-500 CHICAGO, IL 60601 DearJOHN THERRIAULT ASSISTANT CLERK 

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## CU:RK·s~D DEC 

## 1 42011 STATE OF

### ILUrw-. Pollution

### Contro~'~d

Your rules Listed belowmet ourcodification standards and have beenpublished inVolume 34, Issue 51 ofthe Illinois Register, dated 12/17/2010. ADOPTED RULES General Rules 35 III. Adm. Code 101 Point ofContact: Marie Tipsord Permits and General Provisions 35 III. Adm. Code 201 Point ofContact: Kathleen Crowley REGULATORY AGENDA General Rules Point ofContact: John Therriault 19566 

### i<to-zZ. 19575

### ~l0-2.)

19623 Ifyouhave any questions, you may contactthe Administrative Code Division at

(217) 782- 7017.

Index Department

- Administrative Code Division

- 111 East Monroe Springfield, IL 62756ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF ADOPTED AMENDMENT 1) Heading ofthePart: Permits and General Provisions 2) Code Citation: 35 Ill. Adm. Code201 3) Section Numbers: AdoptedAction: 201.162 Amend 4) StatutoryAuthority: Implementing Section 10 and authorizedby Sections 27 and 28 of the Environmental ProtectionAct [ 415 ILCS 5/10, 27 and 28]. 5) Effective Date ofAmendment: 

### DEC

- 12010 6) Does this rulemaking contain an automaticrepeal date? No 7) Do these amendments contain incorporations byreference? No 8) The adopted amendment is onfile inthe Board's Chicago office at the James R. Thompson Center, 100 W. Randolph, Suite 11-500 and is available for public inspection. 9) Notice ofProposal Published inIllinois Register: July2, 2010; 34 Ill. Reg. 8508 10) Has JCARissued a Statement ofObjections to this amendment? No 11) Differences betweenproposal and final version: Theprocedural rule amendment proposed for final notice is unchanged from first notice, otherthanto reflect a changein citation form requested bythe JointCommitteeon Administrative Rules (JCAR). 12) Have all the changes agreeduponbythe agency and JCARbeenmade as indicatedinthe agreements letterissued byJCAR? Yes 13)

. Will this amendment replace emergency amendments currentlyin effect? No 14) Are there any amendments pendingonthis Part? No 15) Summary and Purpose ofAmendment: A more detailed description ofthis rulemaking is containedinthe Board's opinion and order in Inthe Matterof: 10-YearFederally Enforceable State OperatingPermits (FESOP): Amendments to 35 Ill.**-~t:J** 

## 'DEC 1 t.0\0 

## sos-cooe. oN.ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF ADOPTED AMENDMENT 201.162. R10-21 (November 18, 2010). The adopted amendments are based on an Illinois Environmental ProtectionAgency (IEPA) proposal concerningthe Board's regulations that affect thepermitting ofsyntheticminor sources and non-major sources. Theproposal extends the possiblemaximum duration of!EPA-issued federally enforceable state operatingpermits (FESOPs) from 5 to 10 years unless the sourceis required to obtain a CleanAirAct Permit Program permitpursuantto Section 39.5 ofthe Illinois Environmental ProtectionAct ("Act") and not exemptpursuant to subsection 1.1 ofSection 39.5 oftheAct. 415 ILCS 5/39.5(1.1). 16) Information and questions regarding this adopted amendment shall bedirected to: Kathleen Crowley Illinois Pollution ControlBoard 100W. Randolph 11-500 Chicago, IL 60601 312-814-6929 Copies ofthe Board's opinions and orders mayberequested from the Clerk ofthe Board at the address listed in #8 above or bycalling 312/814-3620. Pleasereferto the Docket numberR10-21 inyourrequest. The Board orderis also available from theBoard'sWeb site (www.ipcb.state.il.us) The full text ofthe AdoptedAmendmentbegins onthe nextpage:Section 201.101 201.102 201.103 201.104

Section 201.121 201.122 201.123 201.124 201.125 201.126

Section 201.141 201.142 201.143 201.144 201.146 201.147 201.148 201.149 201.150 201.151 ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF ADOPTED AMENDMENT TITLE 35: ENVIRONMENTAL PROTECTION SUBTITLE B: AIRPOLLUTION CHAPTER I: POLLUTION CONTROLBOARD SUBCHAPTER a: PERMITS AND GENERAL PROVISIONS PART 201 PERMITS AND GENERALPROVISIONS

OtherDefinitions Definitions SUBPARTA: DEFINITIONS

Abbreviations and Units Incorporations byReference SUBPART B: GENERAL PROVISIONS

Existence ofPermitNo Defense ProofofEmissions Burden ofPersuasion Regarding Exceptions Annual Report Severability Repealer SUBPART C: PROHIBITIONS

Prohibition ofAirPollution ConstructionPermit Required OperatingPermits for New Sources OperatingPermits for Existing Sources Exemptions from State PermitRequirements FormerPermits OperationWithout Compliance Program and Project Completion Schedule OperationDuringMalfunction, Breakdown or Startups Circumvention Design ofEffluent Exhaust SystemsSection 201.152 201.153 201.154 201.155 201.156 201.157 201.158 201.159 201.160 201.161 201.162 201.163 201.164 201.165 201.166 201.167 201.168 201.169 201.170 ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF ADOPTED AMENDMENT SUBPART D: PERMIT APPLICATIONS AND REVIEW PROCESS

Contents ofApplication for ConstructionPermit Incomplete Applications (Repealed) Signatures (Repealed) Standards for Issuance (Repealed) Conditions Contents ofApplication for OperatingPermit Incomplete Applications Signatures Standards for Issuance Conditions Duration Joint Construction and OperatingPermits Design Criteria Hearings Revocation Revisions to Permits Appeals from Conditions Special Provisions for Certain OperatingPermits PortableEmission Units SUBPART E: SPECIAL PROVISIONS FOR OPERATING PERMITS FOR CERTAIN SMALLER SOURCES Section 201.180 201.181 201.187

Section 201.207 201.208 201.209 201.210 201.211 201.212 Applicability (Repealed) Expiration and Renewal (Repealed) Requirement for a Revised Permit (Repealed) SUBPARTF: CAAPP PERMITS Applicability Supplemental Information Emissions ofHazardous AirPollutants Categories ofInsignificant Activities or Emission Levels Application for Classification as an Insignificant Activity Revisions to Lists ofInsignificant Activities orEmission LevelsILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF ADOPTED AMENDMENT

SUBPART G: EXPERIMENTALPERMITS (Reserved) SUBPART H: COMPLIANCEPROGRAMS AND PROJECT COMPLETION SCHEDULES Section 201.241 201.242 201.243 201.244 201.245 201.246 201.247

Section 201.261 201.262 201.263 201.264 201.265

Section 201.281 201.282 201.283

Section 201.301 201.302 Contents ofCompliance Program Contents ofProject Completion Schedule Standards for Approval Revisions Effects ofApproval Records and Reports Submission and Approval Dates SUBPART I: MALFUNCTIONS, BREAKDOWNS OR STARTUPS

Contents ofRequest for Permissionto Operate During a Malfunction, Breakdown orStartup Standards for GrantingPermissionto Operate During a Malfunction, Breakdown or Startup Records and Reports Continued Operation or Startup Priorto Granting ofOperatingPermit Effect ofGranting ofPermission to Operate During a Malfunction, Breakdownor Startup SUBPART J: MONITORING AND TESTING

PermitMonitoring Equipment Requirements Testing Records and Reports

Records Reports SUBPART K: RECORDS AND REPORTSSection 201.401 201.402 201.403 201.404 201.405 201.406 201.407 201.408 ILLINOIS REGISTER POLLUTION CONTROL BOARD NOTICE OF ADOPTED AMENDMENT SUBPART L: CONTINUOUS MONITORING

Continuous Monitoring Requirements Alternative Monitoring Exempt Sources Monitoring SystemMalfunction Excess Emission Reporting DataReduction Retention ofInformation Compliance Schedules 201.APPENDIX A Rule into Section Table 20l.APPENDIXB Section into Rule Table 20l.APPENDIX C Past ComplianceDates AUTHORITY: Implementing Sections 10, 39, and 39.5 and authorized by Section27 ofthe Environmental ProtectionAct [415 ILCS 5/10,27,39, and 39.5]. SOURCE: Adopted as Chapter2: AirPollution, Part I: General Provisions, inR71-23, 4 PCB 191, filed and effectiveApril14, 1972; amended inR78-3 and 4, 35 PCB 75 and 243, at 3 Ill. Reg. 30, p. 124, effectiveJuly28, 1979; amended inR80-5, at 7 Ill. Reg. 1244, effective January 21, 1983; codified at 7 Ill. Reg. 13579; amended inR82-1 (Docket A) at 10 Ill. Reg. 12628, effective July7, 1986; amended inR87-38 at 13 Ill. Reg. 2066, effective February 3, 1989; amended inR89-7(A) at 13 Ill. Reg. 19444, effective December 5, 1989; amended in R89-7(B) at 15 Ill. Reg. 17710, effective November26, 1991; amended inR93-11 at 17 Ill. Reg. 21483, effective December7, 1993; amended in R94-12 at 18 Ill. Reg. 15002, effective September21, 1994; amended inR94-14 at 18 Ill. Reg. 15760, effective October 17, 1994; amended in R96-17 at 21 Ill. Reg. 7878, effectiveJune 17, 1997; amended in R98-13 at 22 Ill. Reg. 11451, effective June 23, 1998; amended inR98-28 at 22 Ill. Reg. 11823, effective July 31, 1998; amended in R02-10 at 27 Ill. Reg. 5820, effective March 21, 2003; amended in R05-19 and R05-20 at 30 Ill. Reg. 4901, effective March 3, 2006; amended inR07-19 at 33 Ill. Reg. 11965, effective August 6, 2009; amendedinR10-21 at 34Ill. Reg , effective

__ _ SUBPARTD: PERMIT APPLICATIONS AND REVIEW PROCESS 

### Section 201.162 Duration a) No operatingpermit shall bevalid longerthan ten :f:We-years or such shorter period as theAgencymay specifyinthe operatingpermit as necessarytoILLINOIS REGISTER POLLUTION CONTROLBOARD NOTICE OF ADOPTED AMENDMENT accomplishthepurposes ofthe Act and this Chapter_. unless the source is subject to: 1) Section 201.169 ofthis Subpart; or7 2). Section 39.5 oftheAct, except for sources exemptpursuantto subsection H efSection 39.5(1.1). b) Applications for renewal ofan operatingpermit shallbe submitted to the Agency at least 90 days priorto the expiration oftheprior permit, and shall conformto Sections 201.157,201.158 and 201.159. The standards for issuance ofrenewal of operatingpermits shall be as set forth in Section201.160. (Source: Amended at 34 Ill. Reg.

__ , effective

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## PUBLISHED BY JESSE WHITE ·SECRETARY OF STATEILLINOIS REGISTER 8049 13 ENVIRONMENTAL PROTECTION AGENCY NOTICE OF PUBLIC INFORMATION The Illinois Environmental Protection Agency (Illinois EPA) Bureau ofAir is accepting public comment on the submittal ofa rule adopted by the Illinois Pollution Control Board (Board) to the United States Environmental Protection Agency (USEPA) as a revision to the Illinois State Implementation Plan (SIP) underthe Clean AirAct (CAA), 42 USC 7401 etseq. The rule, entitled, "10-Year FederallyEnforceable State OperatingPennits ("FESOP''): Amendments to 35Ill. Adm. Code 201.162 (R10-21)" is for the purpose ofextending the time that the Illinois EPA may grant FESOPs from 5 to I 0 years. In order for a rule to be considered for approval as a revision to the SIP, the State must submit it in accordance with the requirements of40 Code of Federal Regulations (CPR) 51.104. On April20, 2010, the Illinois EPA submitted a regulatory proposal to amend 35 Ill. Adm. Code 201.162, to allow the Illinois EPA to grant FESOPs for up to 10 years: In the Matter of: 10-Year Federally Enforceable State Operating Permits (FESOP): Amendments to 35 Ill. Adm. Code Section 201.162 (R10-21). On November 18,2010,the Pollution Control Board adopted the proposed rulemaking. Section 201.162 is an approved rule ofthe Illinois SIP. Accordingly, since the regulatory proposal amended this Section, the amendment must be submitted to the USEPA for approval as a revision to Illinois' SIP. The Illinois EPA will accept written comments from the public. The written comments must be postmarked by July 15, 2013, unless a public hearing is requested. Comments and requests for hearing should be mailed to: Dean Studer, Hearing Officer Illinois EPA 1021 North Grand Avenue East P.O. Box 19276 Springfield, Illinois 62794-9276 Telephone: 217/558-8280 or TDD: 217/782-9143 Ifa timely request for a public hearing is received by July 15, 2013, a public hearing will be scheduled through a separate notice and held to receive comments regarding the proposed SIP revision. Ifa public hearing is conducted, the written public comment period will be extended as provided for in the separate notice. Ifno request for a public hearing is received by the Illinois EPA by U.S. Mail, carrier mail, or hand delivered by July 15, 2013, no hearing will be scheduled. Ifsuch a hearing is scheduled, verification ofthe public hearing will be posted by July 30, 2013 on the Illinois EPA's website at http://www.epa.state.il.us/public-notices/. Interested persons may also contact Dean Studer, theILLINOIS REGISTER 8050 13 ENVIRONMENTAL PROTECTION AGENCY NOTICE OF PUBLIC INFORMATION Illinois EPA's Hearing Officer, at the phone number listed above to inquire as to the status ofa public hearing. Copies ofthe proposed SIP revision may be viewed by the public on Illinois EPA's website at http://www.epa.state.il.us/public-notices/ or during regular business hours (Monday through Friday 8:30a.m. until 4:30p.m, except for State holidays) at the following Illinois EPA offices: 1021 North Grand Avenue East, Springfield, Illinois; 9511 W. Harrison St., Des Plaines, Illinois; and 2009 Mall Street, Collinsville, Illinois. No walk-in requests for copies ofthis material will be accommodated unless advance notice is provided. Requests and public inquiries should be directed to Dean Studer, the Illinois EPA's Hearing Officer, at the address and phone number listed above. Ifa hearing request is received, the hearing will be held in accordance with the provisions ofthe Illinois EPA's "Procedures for Informational and Quasi-Legislative Public Hearings," set forth at 35 Ill. Adm. Code 164. This notice is intended to satisfy the requirements ofSection 110(1) of the CAA (42 USC 7410(1) (public notice for SIP revisions)).10-Year FESOP SIP- E-mail Service List Studer, Dean Doctors, Rachel iaap@hansoninfosys.com jeffa@gfai.org Fulgenzi, Annette Yang, Virginia Alexander, Ann AmyFunk Andrea Sanchez Verena Owen- Baumling(a{aol.com blathras.constantine@epamail.epa.gov BrianImus Brian Urbaszewski David Ogulei dsutton@craworld.com Faith Bugel Heidi Hanson khodge@hdzlaw.com kristin.hemy@sienaclub.org lioneltrepanier@yahoo.com marcus.danny@epa.gov Rick Diericx Senator Durbin SZingle@aol.com Tin, Angela Tom Shepherd Whitney Fenell Harley, Keith Kathleen Logan-Smith Andrea Gross Andria, Kathy Christine Favilla Robert Kuehn Andy Stewart Doug Campbell Linda McDonald MaryDouglas Morse, James PattyPear Stansfield, Michael Mark Biel- mbiel@cicil.net; Don Brown Don.Brown@illinois.gov; Thomas Davis- Tdavis@atg.state.il.us; MDmm@atg.state.il.us:Alec Davis- ADavis@ierg.org; Deborah C mmelly - Conelly@illinois.gov

# Attachment
13Exhibit



# ---- CIDCAGO LEGAL CLINIC, INC. South Chicago • Pilsen • Austin • Downtown Most Reverend ThomasJohn Paprocki, President Edward Grossman, Executive Director Marta C. Bukata, Deputy Director

### * Downtown Office: 211 W. Wacker Dr. Suite750 Keith I. Harley- kharley@kentlaw.edu Greta M. Doumanian Avani Kamdar Chicago, IL 60606 Phone (312) 726-2938 Fax (312) 726-5206 *also admitted in Indiana June 27, 2013 Dean Studer, Hearing Officer lllinois EPA 1021 North Grand Avenue East P.O. Box 19276 Springfield, IL 62794-9276

# ~m3©IffilllmiD) JUL 0 12013 COMMUNITY RELATIONS ILLINOIS EPA

Re: 10-YearFederally**E1~{orceable** State OperatingPermits ("FESOP'):Amendments to 35Ill. Adm. Code Section 201.162 (R10-21) ToTheHearing Officer: Pleasebe advised that IrepresentthePilsen Enviromnental Rights and Refonn Organization ("PERRO"). PERRO is an environmental education and advocacy group located in Chicago's Pilsen neighborhood. Like manyurban neighborhoods, Pilsen is characterized byindustrial and commercial sources ofregulated airpollutants that operateimmediately adjacent to residences, schools and public places. The Pilsen neighborhood is a predominantly Latino neighborhood appropriately characterized as an enviromnentaljustice community, and is non-attainment withNational Ambient Air Quality Standards for lead and fine particulatematter. · PERRO opposesthe proposedrevision to the Illinois StateImplementation Plan extendingthe time that the Illinois EPAmaygrant FESOPs from 5 to 10 years. PERRO opposes this SIP revisionbecause it cmiailspublicparticipation opportunities for residents ofIllinois. PERRO opposes this SIP revision for any source subject to FESOP requirements that operates in a non-attainment area oris categorized as an area source of hazardous airpollutants. Formostresidents ofIllinois, the most accessible opportunityfor publicparticipation for air emitting sources is dmingpennitrenewal. In communities like Pilsen, this opportunityis especiallyimportantfor smaller sources because they canhave an importantlocalized effect, even though their overall emissions are categorized as minor by Illinois EPA Publically noticing a pennitrenewal can lead to publicinvolvement in thefonn ofa hearing or less fonnal meeting, as well as a written commentpedod, allowing for infonnationto be submittedto the agency, conttibutingto a more careful,

1Re: 10-YearFederally Enforceable State OperatingPermits ("FESOP"): Amendments to 35Ill. Adm. Code Section 201.162 (RI0-21)

deliberativereviewbyregulators. It provides an opportunity for regulators and regulated entities to interactwithmembers ofthe public, and to address publicconcerns. It provides an opportunityfor members ofthe publicto be assured that an air emitting source is achievingbasic compliancewith currentregulatoryrequirements designed to protectpublic,health and safety. The goal ofpublicparticipation- central to boththe CleanAir Act and the Illinois Enviromnental ProtectionAct- is damagedby a 1 0-year renewal becauseitlessens the frequency ofthis critical opportunityfor public involvement. This concern is true for all Tilinois residents who are affectedbythe operations ofthe 800 sources operatingunderFESOP requirements. PERRO asserts that the five-yearrenewal requirementmust beretained for FESOP sources which are: 1. emittingpollutants that cause orcontribute to non-attainment with theNAAQS; or, 2. which are categorized as area sources ofhazardous airpollutants. In non-attainment areas, smallerFESOP sources canhave a significant, cumulative contribution to unhealthy air conditions. Itis well-established that a more stringent permittingprotocol is appropriate when an ambient airqualityregion is non-attaimnent; mandating a five-year renewal for FESOP sources that emitpollutantsthat contlibute to non-attainmentis consistent withthis protocol and with Clean Air Actmandates to resolve airqualityproblems thatthreatenpublichealth. Smaller sources ofhazardous air pollutants- so-called area sources- havebeen identifiedbyU.S. EPA as having the potential to contribute to dangerous local conditions, especiallyinurban areas. Again, theprioritythat attaches to publichealth must far outweighthe convenienceto regulators and regulated entities resultingfrom less frequent pennitrenewal. Theresidents of Pilsen are well aware ofthe impacts a small source can haveonNAAQS attainment, specificallyfor a pollutantthatis a developmental toxinhazardous to area children. In Pilsen,bothU.S. EPA and Illinois EPAhave attlibutedlead non-attaimnentto an industrial source, H. Kramer, whichis not categorized as a major sourceunder any Clean AirActpennittingprotocol. Thankyou for your consideration ofthese comments. Sincerely,

# ~~ Keith Harley Attomey at Law

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## ILLINOIS ENVIRONMENTAL PROTECTION AGENCY

1021 NORTH GRAND AVENUE EAsT, P.O. Box19276, SPRINGFIELD, ILUNOIS62794-9276 • (217)782-2829 PAT QUINN, GOVERNOR LISA BONNETT, DIRECTOR

Illinois EPA's Response to Comment for SIP submittal for 10-year FESOP Amendments: The Pilsen Environmental Rights and Reform Organization (PERRO) submitted a comment dated June 27, 2013 and received bythe Hearing Officer onJuly 1, 2013, concerning the Illinois EPA's SIP submittal for 10-year Federally Enforceable State Operating Permit (FESOPs). The Illinois EPA does takethe environmentaljustice (EJ) areas ofconcern seriously. The Illinois EPAbelieves that allowing these relatively small sources to operate under their existing FESOP from five years to ten years should not impact the communityno matter ifthe community is an EJ community or ifthe area is nonattainment for any oftheNational Ambient Air Quality Standards (NAAQS). Any changes to the source's operations that do not fall under the existing permit would require a constructionpermit and would then be subject to screening for EJ concerns. Ifthe Bureau ofAir discovers during its EJ screening that there are concerns about a particular source, then the draft constructionpermit and draft FESOP revision maybe sent out for public notice and comment at that time. The owner oroperator ofa source is required to comply with any future regulations even ifthe conditions are not in the permit, the source. This obligation includes the requirements under the Clean Air Act'sNational Emission Standards for Hazardous Air Pollutants for area sources. Lengthening the term ofthe permit does not hinder any enforcement orobligation onthe sourceto complywith existing or a future standard, instead it allows the Illinois EPA to devote more ofits scarce resources to pressing environmental issues that would otherwise be devoted to routine permit renewals Dated: August 12, 2013

4302 N. Main St., Rockford, IL 61103 (815) 987-7760 595 S. State, Elgin, IL60123 (847) 608-3131 2125 S. First St., 01ampaign, IL 61820 (217) 278-5800 2009 Mall St., Collinsville, IL 62234 (618) 346-5120 9511 Harrison St., Des Plaines, IL 60016 (847) 294-4000 5407 N. University St., Arbor 113, Peoria, IL 61614 (309) 693-5462 2309 W. Main St., Suite 116, Marian, IL 62959 (618) 993-7200 100 W. Randolph, Suite 10-300, Chicago, IL 60601 (312) 814-6026 PLEASE PRINT ON RECYCLED PAPER