February 28, 2008

Environmental Update

95th General Assembly: Environmental Bill Summaries

DESCRIPTION: Uniform Environmental Covenant for Brownfield Properties
BILL #: SB2110
SPONSOR: A.J. Wilhelmi
STATUS: Introduced and Referred to Rules Committee on Feb. 14, 2008
BILL SUMMARY: This bill creates a new act, which establishes an interest in real estate called an "environmental covenant."  An environmental covenant is an enforceable document that runs with the land and assures the remediation of brownfields.  An environmental covenant may be conveyed to and enforced by a third person, called a "holder."  A holder may be, for example, the IEPA or a municipality.  An environmental response project (a plan or work performed for environmental remediation of property pursuant to a federal or state program, incident to closure of a solid or hazardous waste management unit, or pursuant to a state voluntary clean-up program) must exist for before an environmental covenant can be created and conveyed.  An environmental covenant is perpetual unless it is specifically limited by its terms or terminated by one of several prescribed methods.  The bill specifies that an environmental covenant takes priority over other real estate interests and also dictates who may enforce a covenant.  The IEPA must maintain a registry of all of the environmental covenants.  The covenant must be executed like a deed and notice of it is recorded in the real estate records.

DESCRIPTION: EPA White Goods Recycling
BILL #: SB2016
SPONSOR: Sen. Halvorson
STATUS: Assigned to Environment and Energy Committee on Feb. 14, 2008
BILL SUMMARY: This bill amends the white goods section of the Environmental Protection Act to require removal of recyclables before disposing white goods in a landfill.  The bill requires the removal of "recyclable components," which is left undefined by the Act, but is to be "determined by the Agency."  The bill also amends the State Finance Act to create the White Goods Management Fund for fees and penalties collected from violations of this Section.  The funds may be used for administrative purposes and for grants to certain manufacturers of products composed of recycled material.  Retailers must collect $8 disposal fee from the customer for each white good sold.  Six of those $8 must be deposited into the White Goods Management Fund.  The fine for not collecting the fee is $100. Department of Revenue is given authority to adopt and enforce rules governing the fee requirement.  A retailer that fails to make a return (quarterly payment of fees to the Department of Revenue) or who willfully violates the fee rules is guilty of a Class 4 felony.  Department of Revenue administrative decisions are appealable to the circuit court.  This bill would be effective immediately.

DESCRIPTION: EPA Civil Actions
BILL #: SB2018
SPONSOR: Sen. Haine
STATUS: Referred to Rules Committee on Feb. 7, 2008
BILL SUMMARY: Adds a new section to Title VIII of the Environmental Protection Act regarding enforcement. This new section requires that any civil action brought by the Attorney General pursuant to a referral or request by the Environmental Protection Agency must name the Agency as a party, plaintiff or complainant in the action. The requirement does not apply to criminal actions under Section 44 of the Act and is not intended to alter or diminish the Attorney General's authority to act as the attorney for the Agency and the State. This bill would be effective immediately. Recently, a very visible dispute between the Illinois Environmental Protection Agency and the Illinois Attorney General's Office resulted in a temporary halt in the filing and pursuit of environmental enforcement actions at the State level.

DESCRIPTION: Coal Combustion By-Product
BILL #: SB2567
SPONSOR: Sen. Frerichs
STATUS: Referred to the Rules Committee on Feb. 15, 2008
BILL SUMMARY: Amends the definition of coal combustion by-product ("CCB") in the Environmental Protection Act to place additional limits on the beneficial use of CCB as structural fill.  The amendment adds the following new requirements for structural fill projects:  (1) the CCB must be covered with 12 inches of soil within 30 days after it is deposited (rather than no deadline by which CCB must be covered); (2) the coal combustion waste must be located at least 500 feet from any residence and any well used as a residential water source to be considered CCB.  The amendment requires the Agency to inspect the project within three months after the user notifies the Agency of the project.  Finally, the amendment requires the Agency to promulgate rules for the use of coal combustion waste as structural fill.  Specifically, the rules must set forth guidelines for a site approval process, which must include a public comment period and input from the Department of Natural Resources on whether the project will affect any endangered species.  Civil actions for violations of the structural fill requirements must be brought in circuit court.  We understand that this bill has been introduced by the bill sponsor to address a concern raised by one of his constituents.  This is the first time that the concept of public participation has been introduced in the approval process for CCB projects, making the beneficial reuse of this material even more difficult and time consuming.  The location standard may also result in a reduction in the number of fill projects that may be approvable by the Agency.

DESCRIPTION: Clean Air Permitting — Title V
BILL #: SB2640
SPONSOR: Sen. Harmon
STATUS: Referred to Rules Committee on Feb. 15, 2008
BILL SUMMARY:

Currently, when a source appeals a Clean Air Act Permit Program ("CAAPP") permit, the appealed permit is automatically stayed  pursuant to Section 10-65(b) of the Illinois Administrative Procedure Act ("APA"), and the existing permit continues in full force and effect until the appeal is resolved by the Board.  This bill amends both the APA and the Environmental Protection Act so that Section 10-65(b) no longer applies to CAAPP permits.

Under Sections 9.1(f), and Sections 39.5(4)(b) of the Environmental Protection Act, if a permitee timely applies for a renewal permit, the existing permit remains in full force and effect until the Agency issues a new permit.  Therefore, this bill does not in any way limit the effectiveness of the existing permit until final administrative action is taken on the application.  Rather, what this amendment does is sever applicability of the automatic stay provision of the APA pending an appeal of a CAAPP permit. 

It is not necessary for the General Assembly to amend both the APA and the Environmental Protection Act to effectuate removal of the principle of automatic stays to CAAPP permits. Amendment of the Environmental Protection Act alone would be sufficient. The language does not contain any retroactive effect; therefore, any stays of CAAPP permits currently in place are not affected by this amendment. Because the APA provides for an automatic stay of the entire appealed permit, yet Title V of the Clean Air Act provides that only the contested portions of an appealed permit are stayed, this amendment to the CAAPP effectively corrects a discrepancy between the two acts in favor of the approach taken by Title V of the Clean Air Act.


DESCRIPTION: Fast-Track Rulemaking
BILL #: SB2639
SPONSOR: Sen. Harmon
STATUS: Referred to the Rules Committee on Feb. 15, 2008
BILL SUMMARY:

Section 28.5 of the Environmental Protection Act, concerning fast-track Clean Air Act rulemakings, sunsets on December 31, 2007.  This bill adds a new Section 28.5 of the Act to take its place. The bill defines a fast-track rulemaking as a proceeding that the Clean Air Act Amendments of 1990 ("CAAA") require to be adopted or a proceeding that is otherwise federally required to address a CAAA requirement. Therefore, it appears as if the Agency is attempting to expand the scope of the rules that can be promulgated through fast-track rulemaking. The definition of "requires to be adopted" has not changed and still defines it as those rules for which USEPA is "empowered to impose sanctions." Unlike the old Section 28.5, however, the new language defines "federally required" as "a rule that, if not adopted, could result in the imposition of a federal plan, federal implementation plan, or other type of sanction."

This bill also does not include a sunset provision for Section 28.5. The bill sets out the form for the rulemaking proposal and procedures for the process the same as in the old Section 28.5. As before, this bill requires the Board to file the rule for second notice with the Joint Committee on Administrative Rules within 160 days of receipt of the proposal. If passed, it would be effective immediately.

Another new addition is the language requiring fast-track adoption when not only the CAAA, but "another federal statute or regulation" requires rules other than identical in substance rules to be adopted. The new language "or another federal statute or regulation" could arguably provide an avenue to propose climate change rules under Section 28.5. Industry has become increasingly concerned with the use of the fast-track process as a way to circumvent the traditional rulemaking process that allows for the full vetting of issues and impacts presented by major rulemaking proposals. This bill both appears to expand the use of the fast-track process and removes the sunset provision in its entirety.


DESCRIPTION: Coal Gasification
BILL #: SB2547
SPONSOR: Sen. Clayborne Jr.
STATUS: Referred to the Rules Committee on Feb. 15, 2008
BILL SUMMARY: Amends the Public Utilities Act to update the section on rate changes due to changes in fuel costs.  A gas utility can enter into a contract for up to 20 years of supply with a company for the purchase of synthetic natural gas produced by the coal gasification process if that company has commenced construction of a coal gasification facility by July 1, 2009 (rather than July 1, 2008).  The bill provides that at the time the contract begins, the price per million BTU shall not exceed $6.85 in 2008 dollars, adjusted annually, and at no time may exceed $7.75 per million BTU.  Such contracts must be entered into within 120 days (rather than a year) from the effective date of the public act incorporating this bill and end no more than 20 years after production of the synthetic natural gas begins.

DESCRIPTION: Lake Michigan Notification Permits
BILL #: HB5256
SPONSOR: Rep. Bellock
STATUS: Passed out of the  Environment and Energy Committee on Feb. 27, 2008
BILL SUMMARY: This bill is in response to the highly publicized effluent discharge permit issued to BP Amoco's Whiting, Indiana refinery in the summer of 2007 by the Indiana Department of Environmental Management that allowed for an increase in total suspended solids and ammonia discharges into Lake Michigan.  The bill proposes to amend the Rivers, Lakes, and Streams Act to require the Illinois Environmental Protection Agency to negotiate with each of the states that border Lake Michigan to establish a notification policy under which the states will agree to notify one another when permitting new sources of water pollution or increased levels of pollution into Lake Michigan.  The effect of the bill would be to make permitting more visible, and ostensibly more difficult, for all future effluent discharges into Lake Michigan.  The bill requires the Director of the Illinois Environmental Protection Agency to report to the General Assembly no later than Jan. 1, 2009 on the status of these negotiations. If passed, the bill would be effective immediately.

DESCRIPTION: Site Remediation Program
BILL #: HB4711
SPONSOR: Rep. Holbrook
STATUS: Referred to Rules Committee on Feb. 1, 2008
BILL SUMMARY: Title XVII became law in 1995, and required the Board to establish rules for the brownfields site remediation program ("SRP") and proportionate share liability.  Because the SRP is a voluntary program, it excludes sites being cleaned up by liable parties under CERCLA, RCRA, landfill closure requirements, or the leaking UST program.  This bill amends Title XVII to also explicitly exclude remedial activity regulated under federally delegated state programs, such as the Clean Air Act, the Clean Water Act, RCRA, the Safe Drinking Water Act, TSCA, and FIFRA, from proportionate share liability.  These exclusions ensure that the SRP will not interfere with delegated federal programs and does not change the way the applicability of the SRP program has been interpreted in the past.  The bill also removes a mandate requiring the Board to adopt proportionate share rules by a date certain (Jan. 1, 1999) and replaces the mandate with an open-ended authorization. 

DESCRIPTION: PCBs in Landfills
BILL #: HB4231
SPONSOR: Rep. Mitchell
STATUS: Referred to the Rules Committee on Jan. 7, 2008
BILL SUMMARY: This bill amends the Illinois Environmental Protection Act and provides that any municipal solid waste landfill that has applied for a permit from the USEPA to accept polychlorinated biphenyls ("PCB") wastes with a concentration of greater than 50 parts per million, to also obtain the consent from the applicable county or municipality before accepting that waste.  The consent can be granted only through a voter referendum.  By adding a level of local approval for the permitting of landfills that accept PCBs, this bill would make it more difficult for any solid waste landfill to accept PCBs, thereby impacting all Illinois companies that are required to properly dispose of their PCB waste items.  If passed, the bill would be effective immediately.

DESCRIPTION: General Environmental Amendments
BILL #: HB4710
SPONSOR: Rep. Holbrook
STATUS: Passed out of the Environment and Energy Committee on Feb. 27, 2008
BILL SUMMARY:

This bill proposes to amend various Illinois environmental laws.  First, it proposes to amend the Asbestos Abatement Act by eliminating the Illinois Response Contractors Indemnification Fund.  The fund was initially established because asbestos abatement contactors were unable to obtain insurance in Illinois.  The fund requires local agencies to deposit 5% of the cost of any asbestos abatement contract into the fund.  The fund allows the Department of Public Health to indemnify contractors who perform asbestos abatement work.  However, now asbestos abatement contactors are able to obtain insurance in Illinois through private carriers.  Therefore, the bill proposes to eliminate the fund and it further provides that all money currently in the fund will be transferred into the Illinois Brownfields Redevelopment Fund. 

Second, the bill proposes to amend the Illinois Alternate Fuels Act.  As it is written now, the Act allows owners of vehicles in Illinois that use domestic renewable fuels to be eligible to apply for a rebate to offset the higher cost of these fuels.  The current Act, however, allows vehicle owners to claim the rebate for the amount spent only in the current calendar year.  Thus, unless the vehicle owner applies for the rebate by December 31, the owner would not be able to collect the rebate.  This bill would allow the vehicle owner to apply for a rebate to offset the cost differential between a conventional vehicle or engine and the same vehicle or engine that has the capability to use domestic renewable fuels within a 12-month period after the vehicle or engine was purchased.

Third, the bill repeals the Illinois Hazardous Waste Laborers Licensing Act.  This Act made it unlawful for any laborer to be involved in the disposal, cleanup or handling of hazardous waste without first obtaining a laborer's license from the Illinois Environmental Protection Agency. 

If passed, the bill would be effective immediately.   

 

For questions about this alert, please contact any of the following attorneys for assistance:


Schiff Hardin Environmental Group
Amy Antoniolli
312.258.5550
Daniel J. Deeb
312.258.5532
Mary Ann Mullin
847.295.4318
Kathleen C. Bassi
312.258.5567
Glenna L. Gilbert
312.258.5804
Gabriel M. Rodriguez
312.258.5516
Stephen J. Bonebrake
312.258.5646
Jeremy R. Hojnicki
312.258.5615
Andrew N. Sawula
312.258.5577
Renee Cipriano
312.258.5720
Jane E. Montgomery
312.258.5508
Sheldon A. Zabel
312.258.5540
 
Joshua R. More
312.258.5769
 
 
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