Schiff Hardin LLP June 3, 2009

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New Law in Response to Crestwood, Illinois Drinking Water Scandal And Other Significant Environmental Laws from the 2009 Legislative Session

On Saturday, May 30, 2009 the Illinois General Assembly passed legislation in response to the April 2009 discovery that millions of gallons of water tainted with perchloroethylene, or PCE, were allegedly pumped into homes in Crestwood, Illinois. House Bill 4021 amends the Right-to-Know provisions of the Illinois Environmental Protection Act (the "Act") and adds a new section to the Act requiring that all users of a community water supply be notified when drinking water is contaminated or there is a threat of contamination above certain groundwater quality standards.

Currently, the Act requires the Illinois Environmental Protection Agency ( the "Agency") to notify community water supply owners and operators if groundwater contamination poses a threat to the water supply and alert the owner of contaminated property where soil contamination extends or threatens to extend offsite. HB 4021 provides that the owners and operators of community water supplies must send notification by mail to users within five days of receiving notice from the Agency, or within two weeks of the Agency's determination that groundwater contamination poses a threat to the public. HB 4021 does not change the timeframes with respect to notification of offsite soil contamination, but does define "soil gas" and, as for soil contamination, requires the Agency to provide notice to the owner of the contaminated property where soil gas contamination extends or threatens to extend offsite above appropriate remediation objectives.

This bill establishes a civil penalty for violations of the public notice or Right-to-Know provisions of the Act of five dollars per premises connected to the water supply and also makes providing false information to the Agency or a delegated unit of local government a felony under state law.

Below are additional summaries of proposed state environmental legislation that has passed both houses of the Illinois General Assembly during the 2009 legislative session. Please note that all of the bills discussed in this update must still be approved by the governor before they become law. In addition to HB 4021, a few of the environmental highlights from this legislative session include:

  • the return of the fast-track rulemaking procedure for rules required to be adopted under the Clean Air Act Amendments of 1990
  • a new section of the Environmental Protection Act allowing the IEPA to make determinations that certain materials are not wastes when used beneficially
  • a reduction in fees for holders of construction storm water NPDES permits

For questions regarding this Environmental Update, please contact any of the attorneys in Schiff Hardin's Environmental Group.

 

 

DESCRIPTION: Fast-Track Rulemaking
BILL #: HB 3859
SPONSOR: Rep. Jack D. Franks
STATUS: Passed both houses 5/14/2009
BILL SUMMARY:

Section 28.5 of the Environmental Protection Act, concerning fast-track Clean Air Act rulemakings, sunset 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. The definition of "requires to be adopted" has not changed and still defines it as those rules for which the United States Environmental Protection Agency is "empowered to impose sanctions." Unlike the old Section 28.5, however, the new language replaces "shall" with "must" in many, but not all of the subsections, arguably making some of the procedures mandatory while others remain optional.

This bill also sunsets this new Section 28.5 on December 31, 2014. The bill sets out the form for the rulemaking proposal, procedures and deadlines the same as in the old Section 28.5. As before, this bill requires the Illinois Pollution Control Board to file the rule for second notice with the Joint Committee on Administrative Rules within 160 days from receipt of the proposal. This bill will become effective immediately upon becoming law.


DESCRIPTION: Beneficial Use Determinations
BILL #: SB 2034
SPONSOR: Sen. Susan Garrett
STATUS: Passed both houses 5/18/2009
BILL SUMMARY:

Creates a new section of the Environmental Protection Act allowing the IEPA to make determinations that certain materials are not wastes as long as the materials are used beneficially and in a manner that is protective of human health and the environment.

The applicant for a beneficial use determination ("BUD") must demonstrate that:

  • the chemical and physical properties of the material are comparable to similar commercially available materials
  • there is a market demand for the material
  • the material is "legitimately beneficially used"

"Legitimately beneficially used" means that the material is managed separately from waste as a valuable material, the material is used as an effective substitute for a similar commercially available material, and the applicant can demonstrate that the material is not stored longer than necessary and is not abandoned.

The bill requires that BUD applications be submitted to the IEPA and that disapprovals or approvals with conditions must include the IEPA's reasons for conditions or disapproval. The bill does not include a timeframe within which the IEPA must make a decision on the application. BUDs are effective for five years, yet the material retains its non-waste status even after the effective period of the BUD so long as it complies with the terms of the BUD and otherwise does not become a waste.

The new section will not apply to the use of materials for which there already exist Illinois Pollution Control Board regulations for their beneficial use such as coal combustion waste, coal combustion byproduct, materials used for energy recovery, and steel and foundry industry waste. This new section also does not apply to materials that cannot be used beneficially, such as hazardous waste.

This bill will become effective immediately upon becoming law.


DESCRIPTION: NPDES Stormwater Construction Permit Fees
BILL #: HB 629
SPONSOR: Rep. Frank J. Mautino
STATUS: Passed both houses 5/15/2009
BILL SUMMARY:

This bill amends the Environmental Protection Act to limit National Pollutant Discharge Elimination System (NPDES) permit fees for construction site storm water discharges. Beginning in 2010, after the initial fee payment, holders of construction site storm water NPDES permits must no longer pay an annual fee. Additionally, beginning in 2010, the initial $500 fee becomes $250 for sites where less than five acres are disturbed and becomes $750 for sites where five or more acres are disturbed.

This bill will become effective immediately upon becoming law.


DESCRIPTION: Renewable Fuels — Grant Addition
BILL #: HB 680
SPONSOR: Rep. Donald Moffitt
STATUS: Passed both houses 5/13/2009
BILL SUMMARY:

Amends the Illinois Renewable Fuels Development Program Act by authorizing the Department of Commerce and Economic Opportunity to award, in excess of the annual aggregate grant total of $20 million, up to $4 million to a grant applicant who installs advanced technologies for water usage, carbon footprint reduction and other blending improvements designed to optimize processes at the applicant's renewable fuels facility.

The bill will become effective immediately upon becoming law.


DESCRIPTION: Green Buildings Act
BILL #: HB 1013
SPONSOR: Rep. Mike Boland
STATUS: Passed both houses 5/19/2009
BILL SUMMARY:

This bill creates a new act, the Green Buildings Act, requiring state-funded building construction and major renovations of existing state-owned facilities to meet certain energy and environmental standards of the Leadership in Energy and Environmental Design (LEED) program rating system, the Green Building Initiative's Green Globes rating system, or an equivalent rating system.

This bill allows the Capital Development Board to grant a waiver from these standards when the applicant can demonstrate:

  • unreasonable financial burden, taking into account operating and construction costs over the life of the building and the total cost of ownership of the building
  • unreasonable impediment to construction
  • that standards would impair the principal function of the building
  • that standards would compromise the historic nature of the structure

The bill also requires state-funded building construction and major renovations of existing state-owned facilities to implement at least one LEED alternative transportation criterion for public transportation or bicycle access.

The standards contained in the Act will be analyzed and evaluated by the Capital Development Board five years after the effective date or upon the completion of 10 Capital Development Board green projects, whichever comes first

The Act becomes effective immediately upon becoming law.


DESCRIPTION: VEH CD-Biodiesel Fuel Use
BILL #: HB 1013
SPONSOR: Rep. Mike Boland
STATUS: Passed both Houses 5/19/2009
BILL SUMMARY:

This bill amends the Illinois Vehicular Code by increasing the percentage of biodiesel blend required to be used by a diesel powered vehicle owned by the state or units of local government (including county or local government, any school district, any community college or public college or university, or any mass transit agency) when refueling at a bulk central fueling facility from 2% to 5%, unless the engine is designed to operate on a higher percentage of biodiesel or on ultra low-sulfur fuel.

The bill defines a "bulk central fueling facility" as a non-commercial fueling facility whose primary purpose is the fueling of vehicles owned or operated by the State, a county or unit of local government, a school district, a community college or public college or university, or mass transit agency.

The bill requires the Secretary of Transportation to adopt rules that will implement the provisions of the bill.

The bill becomes effective on July 1, 2009.

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RECENT ENVIRONMENTAL PUBLICATIONS

"Supreme Court Limits Scope of 'Arranger' Liability and Joint and Several Liability Under Superfund," Environmental Update (May 5, 2009)
"U.S. EPA Reinstates Stricter TRI Reporting Requirements," Environmental Update (April 24, 2009)
"U.S. EPA Takes Another Step Towards Regulation of Greenhouse Gas Emissions," Environmental Update (April 20, 2009)
"U.S. EPA Publishes Proposed National Greenhouse Gas Reporting Rule," Environmental Update (April 10, 2009)

ABOUT SCHIFF HARDIN LLP

Schiff Hardin's diverse environmental practice advises clients engaged in a wide variety of industries and commercial endeavors such as electric generation, natural gas distribution and production, chemical manufacturing, auto and auto parts manufacturing, consumer goods manufacturing, real estate development and investments by financial institutions and equity investors.

For more information, contact us.

 

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