Document ID: EPA-R05-OAR-2013-0436-0001
Agency: epa
Document Type: Proposed Rule
Title: Proposed Approval of Illinois Variances for Midwest generation, LLC
Posted Date: 2015-04-23T04:00Z

[Federal Register Volume 80, Number 78 (Thursday, April 23, 2015)]
[Proposed Rules]
[Pages 22662-22666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-09365]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2013-0436; EPA-R05-OAR-2014-0663; FRL-9926-26-Region-5]

Approval and Promulgation of Air Quality Implementation Plans; 
Illinois; Midwest Generation Variances

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve into the Illinois regional haze State Implementation Plan (SIP) 
variances affecting the following Midwest Generation, LLC facilities: 
Crawford Generating Station (Cook County), Joliet Generating Station 
(Will County),

[[Page 22663]]

Powerton Generating Station (Tazewell County), Waukegan Generating 
Station (Lake County), and Will County Generating Station (Will 
County). The Illinois Environmental Protection Agency (IEPA) submitted 
these variances to EPA for approval on May 16, 2013, and August 18, 
2014.

DATES: Comments must be received on or before May 26, 2015.

ADDRESSES: Submit your comments, identified by Docket ID Nos. EPA-R05-
OAR-2013-0436 and EPA-R05-OAR-2014-0663, by one of the following 
methods:
    1. www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    2. Email: aburano.douglas@epa.gov.
    3. Fax: (312) 408-2279.
    4. Mail: Doug Aburano, Chief, Attainment Planning and Maintenance 
Section, Air Programs Branch (AR-18J), U.S. Environmental Protection 
Agency, 77 West Jackson Boulevard, Chicago, Illinois 60604.
    5. Hand Delivery: Doug Aburano, Chief, Attainment Planning and 
Maintenance Section, Air Programs Branch (AR-18J), U.S. Environmental 
Protection Agency, 77 West Jackson Boulevard, Chicago, Illinois 60604. 
Such deliveries are only accepted during the Regional Office normal 
hours of operation, and special arrangements should be made for 
deliveries of boxed information. The Regional Office official hours of 
business are Monday through Friday, 8:30 a.m. to 4:30 p.m., excluding 
Federal holidays.
    Instructions: Direct your comments to Docket ID Nos. EPA-R05-OAR-
2013-0436 and EPA-R05-OAR-2014-0663. EPA's policy is that all comments 
received will be included in the public docket without change and may 
be made available online at www.regulations.gov, including any personal 
information provided, unless the comment includes information claimed 
to be Confidential Business Information (CBI) or other information 
whose disclosure is restricted by statute. Do not submit information 
that you consider to be CBI or otherwise protected through 
www.regulations.gov or email. The www.regulations.gov Web site is an 
``anonymous access'' system, which means EPA will not know your 
identity or contact information unless you provide it in the body of 
your comment. If you send an email comment directly to EPA without 
going through www.regulations.gov your email address will be 
automatically captured and included as part of the comment that is 
placed in the public docket and made available on the Internet. If you 
submit an electronic comment, EPA recommends that you include your name 
and other contact information in the body of your comment and with any 
disk or CD-ROM you submit. If EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment. Electronic files should avoid 
the use of special characters, any form of encryption, and be free of 
any defects or viruses. For additional instructions on submitting 
comments, go to Section I of the SUPPLEMENTARY INFORMATION section of 
this document.
    Docket: All documents in the docket are listed in the 
www.regulations.gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in www.regulations.gov or in hard copy at the Environmental Protection 
Agency, Region 5, Air and Radiation Division, 77 West Jackson 
Boulevard, Chicago, Illinois 60604. This facility is open from 8:30 
a.m. to 4:30 p.m., Monday through Friday, excluding Federal holidays. 
We recommend that you telephone Kathleen D'Agostino, Environmental 
Engineer, at (312) 886-1767 before visiting the Region 5 office.

FOR FURTHER INFORMATION CONTACT: Kathleen D'Agostino, Environmental 
Engineer, Attainment Planning and Maintenance Section, Air Programs 
Branch (AR-18J), Environmental Protection Agency, Region 5, 77 West 
Jackson Boulevard, Chicago, Illinois 60604, (312) 886-1767, 
dagostino.kathleen@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. This SUPPLEMENTARY INFORMATION 
section is arranged as follows:

I. What should I consider as I prepare my comments for EPA?
II. What is the background for this action?
III. What is EPA's analysis of the variances for Midwest Generation?
IV. What action is EPA taking?
V. Incorporation by Reference
VII. Statutory and Executive Order Reviews

I. What should I consider as I prepare my comments for EPA?

    When submitting comments, remember to:
    1. Identify the rulemaking by docket number and other identifying 
information (subject heading, Federal Register date and page number).
    2. Follow directions--EPA may ask you to respond to specific 
questions or organize comments by referencing a Code of Federal 
Regulations (CFR) part or section number.
    3. Explain why you agree or disagree; suggest alternatives and 
substitute language for your requested changes.
    4. Describe any assumptions and provide any technical information 
and/or data that you used.
    5. If you estimate potential costs or burdens, explain how you 
arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
    6. Provide specific examples to illustrate your concerns, and 
suggest alternatives.
    7. Explain your views as clearly as possible, avoiding the use of 
profanity or personal threats.
    8. Make sure to submit your comments by the comment period deadline 
identified.

II. What is the background for this action?

    Regional haze is a visibility impairment that is caused by the 
cumulative emissions of fine particles (PM2.5) (e.g., 
sulfates, nitrates, organic carbon, elemental carbon and dust) and 
their precursors (sulfur dioxide (SO2), nitrogen oxides 
(NOX), and in some cases ammonia and volatile organic 
compounds) from numerous sources over a wide geographic area. Fine 
particulate precursors react in the atmosphere to form 
PM2.5. Aerosol PM2.5 reduces the clarity and 
distance one can see by scattering and absorbing light.
    The visibility protection program under sections 169A, 169B, and 
110(a)(2)(J) of the Clean Air Act (CAA) is designed to protect 
visibility in national parks and wilderness areas (Class I areas). On 
December 2, 1980, EPA promulgated regulations, known as ``reasonably 
attributable visibility impairment (RAVI),'' to address visibility 
impairment in Class I areas that is reasonably attributable to a single 
source or small group of sources. On July 1, 1999, EPA promulgated the 
Regional Haze Rule which revised existing visibility regulations to 
incorporate provisions addressing regional haze impairment. EPA's 
Regional Haze Rule, as codified in Title 40 Code of Federal Regulations 
part 51.308 (40 CFR 51.308), requires states to submit regional haze 
SIPs. Among other things, the regional haze SIPs must include 
provisions requiring certain sources to install and operate best 
available retrofit technology (BART).
    At 40 CFR 51.308(e)(2), the Regional Haze Rule allows states to 
meet BART

[[Page 22664]]

requirements by mandating alternative measures in lieu of mandating 
source-specific BART, so long as the alternative measures provide 
better visibility protection. Given the regional nature of visibility 
impairment, an alternative that results in lower emissions of 
SO2 and NOX will generally provide better 
visibility protection. Thus, in the absence of a difference in the 
spatial distribution of emissions, a modeling analysis is generally not 
necessary to be able to conclude that an alternative strategy with 
lower SO2 and NOX emissions provides better 
visibility protection.
    On June 24, 2011, Illinois submitted a plan to address the 
requirements of the Regional Haze Rule, as codified at 40 CFR 51.308. 
EPA approved Illinois' regional haze SIP on July 6, 2012 (77 FR 39943). 
In its approval, EPA determined that the emission reductions from 
sources included in the Illinois plan are significantly greater than 
even conservative definitions of BART applied to BART subject units (77 
FR 39945). EPA also addressed whether the Illinois plan, achieving 
greater emission reductions overall than the application of BART on 
BART-subject units, can also be expected to achieve greater visibility 
protection than application of BART on BART-subject units. Given that, 
in general, the Illinois power plants are substantial distances from 
any Class I area, and given that the averaging in Illinois' plan is 
only authorized within the somewhat limited region within which each 
utility's plants are located, EPA determined that a reallocation of 
emission reductions from one plant to another is unlikely to change the 
impact of those emission reductions significantly. Consequently, EPA 
concluded that the significantly greater emission reductions that 
Illinois required in its regional haze SIP will yield greater progress 
toward visibility protection as compared to the benefits of a 
conservative estimate of BART.
    Among the rules approved in this action to meet BART requirements 
are Illinois Administrative Code rules: 35 Ill. Adm. Code 225.292: 
Applicability of the Combined Pollutant Standard; 35 Ill. Adm. Code 
225.295 Combined Pollutant Standard: Emissions Standards for 
NOX and SO2; 35 Ill. Adm. Code 225.296 Combined 
Pollutant Standard: Control Technology Requirements for NOX, 
SO2, and PM emissions (except for paragraph 225.296(d)); and 
35 Ill. Adm. Code 225 Appendix A.
    Appendix A identifies the Midwest Generation Electric Generating 
Units (EGUs) specified for purposes of the combined pollutant standard 
(CPS). Section 225.292 provides that the owner or operator of specified 
EGUs in the CPS located at Fisk, Crawford, Joliet, Powerton, Waukegan, 
and Will County power plants may elect for all of those EGUs as a group 
to demonstrate compliance pursuant to the CPS. Section 225.295(b) 
establishes CPS group average annual SO2 emissions rates 
beginning in calendar year 2013 and continuing in each calendar year 
thereafter. Section 225.296(a)(1) requires Midwest Generation to 
install and have operational a flue gas desulfurization (FGD) system on 
Unit 7 of the Waukegan Generation Station or shut down the unit on or 
before December 31, 2013. Section 225.296(c)(1) requires that Midwest 
Generation replace the hot-side electrostatic precipitator (ESP) on 
Unit 7 at the Waukegan Generation Station with a cold-side ESP, install 
an appropriately designed fabric filter, or permanently shut down the 
unit on or before December 31, 2013. Section 225.296(a)(2) requires 
Midwest Generation to install and have operational a FGD system on Unit 
8 of the Waukegan Generation Station or shut down the unit by December 
31, 2014.
    The Illinois Pollution Control Board (IPCB) granted Midwest 
Generation variances to Section 225.296(a)(1) and 225.296(c)(1) on 
August 23, 2012 and to Section 225.295(b) and Section 225.296(a)(2) on 
April 4, 2013. IEPA submitted these variances as revisions to the 
Illinois regional haze SIP on May 16, 2013, and August 18, 2014.

III. What is EPA's analysis of the variances for Midwest Generation?

    The variances granted by the IPCB and submitted by IEPA for 
approval change the requirements for Midwest Generation under the 
regional haze SIP as follows:
    1. The IPCB granted Midwest Generation a variance from the average 
annual SO2 emission rates of 0.28 pounds per million Btu 
(lb/mmBtu) in 2015 and 0.195 lb/mmBtu in 2016 in Section 225.295(b) 
subject to numerous conditions including, but not limited to, the 
following condition: Midwest Generation CPS group must comply with a 
system-wide average annual SO2 emission rate of 0.38 lb/
mmBtu from January 1, 2015 through December 31, 2016. The CPS group 
continues to be subject to the 2017, 2018, and 2019 system-wide average 
annual SO2 emission rates of 0.15 lb/mmBtu, 0.13 lb/mmBtu, 
and 0.11 lb/mmBtu, respectively, set forth in Section 225.295(b).
    2. The IPCB granted Midwest Generation a variance from the December 
31, 2013, deadline for installation and operation of control equipment 
on Unit 7 of the Waukegan Generation Station as required by Section 
225.296(a)(1) and (c)(1) subject to, among other things, the following 
condition: Midwest Generation must either install the required 
pollution controls or permanently shut down Unit 7 at the Waukegan 
Generating Station on or before December 31, 2014.
    3. The IPCB granted Midwest Generation a variance from the December 
31, 2014 deadline for installation and operation of FGD equipment on 
Unit 8 at the Waukegan Generating Station as required by Section 
225.296(a)(2) subject to, among other things, the following condition: 
Midwest Generation must install the required pollution controls or 
permanently shut down Unit 8 at the Waukegan Generating Station by May 
31, 2015. Midwest Generation is not allowed to operate Waukegan Unit 8 
from January 1, 2015, until completion of the installation of FGD 
equipment.
    4. In addition to the conditions described above, the variances 
granted by the IPCB are subject to a number of other conditions 
including, but not limited to, the following conditions:
    a. Midwest Generation must shut down the coal-fired unit at Fisk 
Generation Station on or before December 31, 2012.
    b. Midwest Generation must cease operation of the coal-fired units 
at the Crawford Generating Station by April 4, 2013, and shut down the 
units on or before December 31, 2014.
    c. Midwest Generation must install and have operational FGD 
equipment and related ESP upgrades at Powerton Unit 6 by December 31, 
2014.
    d. Midwest Generation must limit annual system-wide mass emissions 
of SO2 to no more than 57,000 tons in 2013, 54,000 tons in 
2014, 39,000 tons in 2015, and 37,000 tons in 2016.
    Midwest Generation ceased operation of the coal-fired boiler at 
Fisk on August 30, 2012, four months earlier than was required by the 
variance. Midwest Generation ceased operation at Crawford on August 28, 
2012, seven months earlier than was required by the variance.
    In evaluating the variances submitted by Illinois, EPA assessed the 
effect the variances would have on the emissions reductions expected 
under the CPS as currently approved into the regional haze SIP. Under 
the conditions of the currently approved regional haze SIP, the Midwest 
Generation CPS group would be expected to emit 190,181 tons of 
SO2 for the 2013-2016 time period. Under the variances, the 
Midwest Generation CPU group would be

[[Page 22665]]

expected to emit 185,599 tons of SO2 over that same time 
period; 4,582 tons fewer than would be expected under the current SIP. 
Further, because Midwest Generation ceased operation at the Fisk and 
Crawford Generating stations in August of 2012, there were 1,983 tons 
of SO2 emissions reductions (734 tons at Fisk and 1,249 tons 
at Crawford) realized in 2012 that were not required by the SIP and an 
additional 8,563 tons of SO2 emissions reductions from 
Crawford beyond what was required in the SIP for the 2017-2018 time 
period. Over the entire 2012-2018 time period it is estimated that the 
variances result in 15,129 tons fewer SO2 emissions than 
were expected under the regional haze SIP.
    In addition, under the conditions of the currently approved 
regional haze SIP, Unit 7 of the Waukegan Generation Station would be 
required to replace its hot-side ESP with a cold-side ESP, install an 
appropriately designed fabric filter, or permanently shut down by 
December 31, 2013. Because the variances allow this unit an additional 
year to install the required equipment, Unit 7 is projected to emit 157 
tons of PM in 2014 rather than the 140 tons that was projected with the 
installation of a cold-side ESP. However, the variances also require 
the shutdown of Fisk and Crawford, which results in an estimated 1,579 
ton reduction in PM emissions in 2014 from what was allowed at these 
sources under the CPS. Consequently, when taking into account the delay 
in the installation of a cold-side ESP at Waukegan Unit 7 and the 
shutdown of Fisk and Crawford, 1,562 fewer tons of PM emissions are 
expected in 2012 under the variances than were projected under the SIP. 
Over the entire 2012-2108 time period it is estimated that the 
variances result in 7,131 fewer tons of PM emissions than were expected 
under the regional haze SIP.
    In addition, while the variances only modify the SO2 and 
PM requirements of the regional haze SIP, reductions in emissions of 
other pollutants can also be attributed to the variances. The April 4, 
2013, IPCB order approving the variance notes that over the 2013-2016 
time period, the variance will also result in 11,553 tons fewer of 
NOX, 183 pounds fewer of mercury and 22,266 tons fewer of 
greenhouse gasses.
    Because the deadline for implementation of BART level controls is 
2017 (within 5 years of approval of Illinois' SIP), EPA also evaluated 
2017 emissions under the variance as compared to the 2017 emissions 
expected under the Illinois regional haze SIP. The variance does not 
revise the requirements of the Illinois regional haze SIP in 2017 and 
beyond, except that the current regional haze SIP would have allowed 
Crawford to operate in 2017 and 2018, thus requiring additional 
reductions under the variance. Therefore, the determination made in 
EPA's approval of the Illinois regional haze SIP, that emission 
reductions from sources included in the Illinois plan are significantly 
greater than even very conservative definitions of BART applied to BART 
subject units (77 FR 39945), continues to apply. In addition, for the 
reasons set forth in EPA's approval of the Illinois regional haze SIP 
(77 FR 39946) and summarized above, EPA continues to conclude that the 
significantly greater emission reductions required under the variance 
will yield greater progress toward visibility protection as compared to 
the benefits of a conservative estimate of BART.
    In evaluating the approvability of the variances, EPA must also 
consider whether the SIP revision meets the requirements of section 
110(l) of the CAA, 42 U.S.C. 7410(l). To be approved, a SIP revision 
must not interfere with any applicable requirement concerning 
attainment, reasonable further progress, or any other applicable 
requirement of the CAA. Currently, the SIP establishes CPS group 
average annual SO2 emissions rates for the Midwest 
Generation CPS group, beginning in 2013. The SIP allows flexibility in 
achieving these overall emissions rates, not specifying limits for 
individual sources. The variances will not result in any increase in 
SO2 emissions, but rather result in less SO2 
emissions over the 2012-2018 time period, as well as greater cumulative 
SO2 emissions reductions every year throughout this time 
period.
    The SIP does contain control technology requirements at Waukegan 
Unit 7, specifically the installation of FGD and a cold-side ESP which 
would be delayed a year under the variances, from December 31, 2013, to 
December 31, 2014. The Waukegan Generating Station is located in Lake 
County, which is designated as attainment for both SO2 and 
PM2.5, and the 12-month delay in the installation of this 
control equipment would not result in an increase in emissions at the 
source over current emissions levels. Further, overall SO2 
and PM emissions in 2014 are lower under the variances than under the 
current SIP. In addition, the variances require the installation of FGD 
on Unit 6 at the Powerton Generation Station four years earlier than is 
currently required in the SIP. The Powerton Generation Station is 
located in the portion of Tazewell County that is designated 
nonattainment as part of the Pekin SO2 nonattainment area. 
This expedited installation of control equipment will aid in attainment 
planning for this nonattainment area.
    The variances will not result in an increase in SO2 or 
PM emissions, but rather will result in lower SO2 and PM 
emissions overall and in 2017, the year that BART is required to be 
implemented in Illinois. In addition, reductions in NOX, 
mercury, and greenhouse gasses can also be attributed to the variances. 
Therefore, for all of the reasons discussed above, the variances will 
not interfere with attainment, reasonable further progress, or any 
other applicable requirement of the CAA.

IV. What action is EPA taking?

    EPA is proposing to approve the Midwest Generation variances 
submitted by IEPA on May 16, 2013, and August 18, 2014, as revisions to 
the Illinois regional haze SIP.

V. Incorporation by Reference

    In this rule, EPA is proposing to include in a final EPA rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, EPA is proposing to incorporate by 
reference Illinois Pollution Control Board Order PCB 12-121, effective 
August 23, 2012 and Illinois Pollution Control Board Order PCB 13-24, 
effective April 4, 2013. The EPA has made, and will continue to make, 
these documents generally available electronically through 
www.regulations.gov and/or in hard copy at the appropriate EPA office 
(see the ADDRESSES section of this preamble for more information).

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA and applicable 
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves state law as meeting Federal requirements and 
does not impose additional requirements beyond those imposed by state 
law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Orders 
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 
2011);
     Does not impose an information collection burden under the 
provisions

[[Page 22666]]

of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal governments or preempt tribal law as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Particulate matter, Reporting 
and recordkeeping requirements, Sulfur oxides.

    Dated: April 2, 2015.
Susan Hedman,
Regional Administrator, Region 5.
[FR Doc. 2015-09365 Filed 4-22-15; 8:45 am]
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