## ILLINOIS ENVIRONMENTAL PROTECTION AGENCY

1021 NORTH GRAND AVENUE EAST, P.0. Box 19276, SPRINGFIELD, ILLINOIS**62794~9276•(217)782-2829** JAMES R. THOMPSON CENTER, 100WEST RANDOLPH, SUITE 11-300, CHICAGO, IL 60601•(312)814-6026

217/785-4140 217/782-9143 (TDD)

September 3, 2014 PAT QUINN, GOVERNOR



### RECEIVED



## SEP 092014 liSA BONNETT, DIRECTOR

Certified Mail

U.:::.. CO"!. l\.LU!UN) OFFICE OF REGIONALADMINISTRATOR Return Receipt Requested 7012 0470 0001 3000 9514 Dr. Susan Hedman Regional Administrator U. S. Environmental Protection Agency, Region 5 77 West Jackson Boulevard (R-19J) Chicago, IL 60604-3507

Re: State ImplementationPlan Revision

Dear Dr. Hedman:

Pursuant to Section 169A ofthe Clean Air Act ("CAA'') (42 U.S.C. § 7491) and Section4 ofthe Illinois Environmental Protection Act (415 ILCS 5/4), the Illinois EnvironmentalProtection Agency ("Agency") submits the enclosed revision to the Illinois State Implementation Plan ("SIP"). This revision has beenprepared as a result ofthe Illinois Pollution ControlBoard ("Board") granting a variance to Illinois Power Holdings, LLC ("IPH") and AmerenEnergy MedinaValley Cogen, LLC ("Medina Valley"), and the Agency is requesting that this variance be considered for approval as arevision to the Illinois SIP.

OnJuly 22, 2013, IPH and Medina Valley, along with Ameren EnergyResources, LLC ("AER"), filed a Petition for Variance with the Board. IPH and Medina Valleyrequested a variance for the electrical generating units in AER's Multi-Pollutant Standards ("MPS") Group from boththe 2015 and 2017 sulfur dioxide ("SOz") emissionrate provisions ofthe Illinois MPS, 35 

### Ill. Adm. Code 225.233, specificallythe S02 emission standards set forth in Section225.233(e)(3)(C)(iii) and (iv).

IPH, an indirect subsidiary ofDynegy, Inc., acquired ownership ofthe operating merchant generating stations, namely the Coffeen EnergyCenter located in Montgomery County, the Duck Creek Energy Center located in FultonCounty, the E.D. Edwards Energy Center located in Peoria County, the JoppaEnergy Center located inMassac County, and the Newton Energy Center located inJasper County, under a transaction agreement between Ameren Corporation and IPH. MedinaValley acquired the shuttered generating stations, the Meredosia Energy Center in Morgan County and the Hutsonville Energy Center in Crawford County. OnNovember 21, 2013, the Board granted the variance to IPH and MedinaValley from the applicable requirements of35 Ill. Adm. Code 225.233(e)(3)(C)(iii) for a period beginning January 1, 2015, through December 31, 2019, and 35 

### Ill. Adm. Code 255.233(e)(3)(C)(iv) for a period beginning January 1, 2017, through December 31, 2019, subject to certain conditions. Illinois PowerHoldings, LLCand

Rockford • 4302 N. Main St., Rockford, IL61103 • (815) 987-7760 Elgin • 595 S. State, Elgin, IL 60123 • (847) 608-3131 Bureau Of Land- Peoria • 7620 N. University St., Peoria. ll61614 • (309) 693-5464 Collinsville • 2009 Mall Street, Collinsville, IL 62234 • {618) 346-5120 Des Plaines • 9511 Harrison St., Des Plaines, IL 60016 • {847) 294-4000 Peoria • 5415 N. University St., Peoria, IL 61614 • {309) 693-S463 Champaign • 2125 S. First St., Champaign, IL 61820 • {217) 278-S800 Marion • 2309 W. Main St., Suite 116, Marion, !L 62959 • (618) 993-7200AmerenEnergyMedina Valley Cogen, LLC, andAmeren Energy Resources, LLCv. Illinois EnvironmentalProtectionAgency, PCB 14-10. This variance supersedes the previously-granted variance from the MPS for the same units that AERheld. Ameren EnergyResources v. Illinois EnvironmentalProtectionAgency, PCB 12-126. The Agency submitted the PCB 12-126 variance for approval as a revision to the Illinois SIP onMay 16, 2013.

The Illinois MPS, which includes Section 225.233(e), is an approved rule ofthe Illinois SIP and

was submitted to address the visibility protectionrequirements ofSection 169A ofthe CAA, 42 U.S.C.§ 7491, and the Regional Haze Rule, as codified in 40 CFR § 51.308. See, 77 Fed. Reg. 39943 (July 6, 2012). Accordingly, since IPH and MedinaValley sought relieffrom provisions of the MPS and suchreliefwas granted bythe Board, the variance mustbe submitted for approval as
a SIP revision addressing the visibilityrequirements under the CAA and the Regional Haze Rule.

As evident from the approval ofIllinois' Regional Haze plan, the MPS provides emission reductions well in excess ofsimply implementing Best Available Retrofit Technology ("BART")

on subject units. Taking into account the variance granted to IPH and Medina Valley, the reductions from Illinois' plan continue to provide significantly greater emissionreductions for S02 than even veryconservative defmitions ofBART for the BART-subject units.

The Agencyprovided public notice ofthe SIP revision, and a public hearing was held on May20, 2014. Public comments were submitted to the Agency and such comments are included herein, along with the Agency summary ofcomments and statement.

In order to assist with your review ofthis plan revision submittal, the following documents are enclosed (one hard copy and one exact duplicate electronic copy on disc):

Attachment 1) Attachment 2) Attachment 3) Attachment 4) Attachment 5) Attachment 6) Attachment 7) Attachment 8) Attachment 9) Attachment 10) Attachment 11) Attachment 12) Attachment 13) Attachment 14) Attachment 15) Attachment 16) Attachment 17) Attachment 18) Attachment 19) Attachment 20) Petition for Variance filed byIPH, MedinaValley, and AER (July 22, 2013) Certification ofPublicationbythe Agency (July 30, 2013) Board Order (August 8, 2013) Notice ofHearing (August 8, 2013) Hearing Officer Order (August 14, 2013) Objection filed by Citizens' Groups (Exhibits NotIncluded) (August 15, 2013) Recommendation ofthe Agency (September 5, 2013) Agency Responses to the Board's Questions (Exhibits Not Included) (September 5, 2013) Petitioners' Responses to the Board's Questions (September 5, 2013) Hearing Officer Order (September 12, 2013) Agency Response to Board Question (September 16, 2013) Petitioners' and Co-Petitioner's Response to Board's Questions (September 16, 2013) Hearing Report (September 18, 2013) Post-Hearing Comments filed by Citizens' Groups (September 24, 2013) Waiver ofStatutoryDecisionDeadline (September 24, 2013) Comments ofthe Illinois Attorney General's Office (September 24, 2013) AER's Briefin Response to Comments (October 7, 2013) Petitioners' and Co-Petitioner's Post-Hearing Brief(October 7, 2013) Petitioners' and Co-Petitioner's Post-Hearing Comment (October 17, 2013) Board Order Granting Variance (November 21, 2013)

2Attachment 21) Attachment 22) Attachment 23) Attachment 24) Attachment 25) Attachment 26) Attachment 27) Attachment 28)

Attachment 29)

Attachment 30) Dissenting Opinion (November 21, 2013) Certificate ofAcceptance filed by IPH and Medina Valley (December 20, 2013) Notice ofPublic Information, 38 Ill. Reg. 2464 (January 17, 2014) Request for Public Hearing (February 18, 2014) Public Comment (February 18, 2014) Notice ofHearing, 38 Ill. Reg. 7689 (April4, 2014) Hearing Transcript (May 20, 2014) Joint Public Comment ofIllinois Power Holdings, LLC, and AmerenEnergy Medina Valley Cogen, LLC (June 20, 2014) Comments ofEarthjustice, Environmental Law and Policy Center, and Sierra Club (June 20, 2014) Agency SummaryofComments and Statement (August 19, 2014)

The entire docket for this variance is located at the Board's website at http://www.ipcb.state.il.us/COOLlexternal/Case View.aspx?referer=results&case=14665.

Iffurther information is required, please contact Gina Roccaforte at 217/782-5544.

### ~ely,

# ~~~ Director

Attachments

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