BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

MIDWEST GENERATION, LLC

-

)

POWERTON GENERATING STATION,

)

)

ILLINOIS ENVIRONMENTAL

PROTECTION AGENCY,

)

PCB 07--

)

(Permit Appeal

-

Air)

1

1

Respondent.

1

NOTICE OF FILING

To:

Dorothy Gunn, Clerk

Illinois Environmental Protection

Agencj

Illinois Pollution Control Board

Division of Legal Counsel

James R. Thompson Center

102

1 North Grand Avenue. East

Suite 11-500

P.O. Box 19276

100 West Randolph

Springfield, Illinois 62794-9276

Chicago. Illinois 60601

PLEASE TAKE NOTICE that we have today electronically filed with the Office of the

Clerk of the Pollution Control Board

APPEAL OF CONSTRUCTION PERMIT

and

APPEARANCES OF SHELDON A. ZABEL. KATHLEEN C. BASSI. STEPHEN J.

BONEBRAKE, and AN

N.

SAWULA,

copies of which are herewith served upon you

Dated: April 9,2007

Sheldon A.

Zabel

Kathleen C. Bassi

Stephen

J. Bonebrake

Andrew

N. Sawula

SCHIFF

HARDN, LI,P

6600 Sears Tower

233 South Waeker Drive

Chicago, Illinois 60606

3 12-258-5500

Electronic Filing, Received, Clerk's Office, April 9, 2007

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BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

MIDWEST GENERATION, LLC

-

1

POWERTON GENERATING STATION,

)

1

Petitioner,

PROTECTION AGENCY,

)

PCB

07-p

)

(Permit Appeal -Air)

1

1

Respondent.

)

APPEARANCE

I, Kathleen C. Bassi, hereby file my appearance in this proceeding on behalf of Petitioner,

Midwest Generation,

I,I,C

-

Powerton Generating Station

Schiff Hardin LLP

6600 Sears Tower

233 South Wacker Drive

Chicago, Illinois 60606

312-258-5500

kbassif6schirfiardin.com

Dated: April 9, 2007

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

MIDWEST GENERATION, LLC

-

1

POWERTON GENERATING STATION,

)

1

Petitioner,

V.

)

PCB 07--

)

(Permit Appeal

-

Air)

ILLINOIS ENVIRONMENTAL

)

PROTECTION AGENCY,

1

Respondent.

)

APPEARANCE

I, Stephen J. Bonebrake, hereby file my appearance in this proceeding on behalf of

Petitioner, Midwest Generation, LLC

-

Powerton Generating Station

sg$lRf

Hardin LLP

6kd0

Sears Tower

233

South Wacker Drive

Chicago. Illinois

60606

312-258-5500

sbonebrake/i$schifihardin.com

Dated: April 9,

2007

Electronic Filing, Received, Clerk's Office, April 9, 2007

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BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

MIDWEST GENERATION, LLC

-

1

POWERTON GENERATING STATION,

1

)

Petitioner,

)

)

PCB 07--

)

ILLINOIS ENVIRONMENTAL

APPEARANCE

I. Andrew

K.

Sawula, hereby file my appearance in this proceeding on behalf of

Petitioner, Midwest Generation, LLC

-

Powerton Generating Station.

Schiff

Hardin LI,P

6600 Sears Tower

233 South Wacker Drive

Chicago, Illinois 60606

312-258-5500

asau-ula/a:schiffhardin.com

Dated: April 9,2007

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

MIDWEST GENERATION, LLC

-

POWERTON GENERATING STATION,

Petitioner,

)

)

v.

)

PCB 07--

)

(Permit Appeal -Air)

ILLINOIS ENVIRONMENTAL

1

PROTECTION AGENCY,

)

APPEARANCE

I, Sheldon A. Zabel, hereby file my appearance in this proceeding on behalf of Petitioner,

Midwest Generation,

LLC

-

Powerton Generating Station

Schiff

IIardin 1,1,p

6600 Sears Tower

233 South Wacker Drive

Chicago, Illinois 60606

312-258-5500

szabellEi;schiffhardin.com

Dated: April 9, 2007

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

MIDWEST GENERATION, LLC

-

1

POWERTON GENERATING STATION,

)

)

Petitioner,

)

1

V.

)

PCB 07--

)

(Permit Appeal

-

Air)

ILLINOIS ENVIRONMENTAL

)

PROTECTION AGENCY,

)

1

APPEAL OF CONSTRUCTION PERMIT

NOW COMES Petitioner, MIDWEST GENERATION, LLC

-

POWEKTON

GENERATING STATION ("Petitioner" or "Midwest Generation"), pursuant to Section

40(a)(l)

of the Illinois Environmental Protection Act ("Act") (415 ILCS 5/40(a)(l)) and 35 111.Adm.Code

5

105.200

et

seq ,

and requests a hearing before the Board to contest the decisions contained in

the construction permit' issued to Petitioner on March 5, 2007, (received via mail) pursuant to

Section

39(a) of the Act (415 ILCS 5/39(a)) and 35 111.Adm.Code

5

201.142 ("the construction

permit") and attached hereto as Exhibit 1. 35

111.Adm.Code

$5

105.210(a) and (b). Pursuant to

Section

39(a) of the Act and 35 111.Adm.Code

5

105.206(a), this Petition is timely filed with the

Board. In support of its Petition, Petitioner states as follows:

I. BACKGROUND

1.

The Powerton Generating Station ("Powerton" or the "Station"), Agency I.D. No.

179801AAA, is an electric generating station owned by Midwest Generation, LLC, and operated

I Application No. 06120004.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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by Midwest Generation, LLC

-

Powerton Generating Station. The Powerton electrical

generating units

("EGUs") went online between 1972 and 1975. Powerton is an intermediate

load plant and can generate approximately 1697 megawatts. Midwest Generation employs 190

people at the

Powerton Generating Station. The Station is located at 13082 East Manito Road,

Pekin,

l'azewcll County, Illinois 615544587, Tazewell County is in attainment of all criteria

pollutants.

2.

Powerton is a major source subject to the Clean Air Act Permitting Program

("CAAPP"). 415 ILCS 5139.5. The Illinois Environmental Protection Agency ("Agency")

issued a CAAPP permit to Midwest Generation for

Powerton on September 29,2005.

Subsequently, on November 2.2005, Midwest Generation timely appealed the CAAPP permit

for

Powerton at PCB 06-059. The Board accepted the appeal for hearing on November 17.2005.

On February 16, 2006, the Board found that, pursuant to Section

10-65(b) of the Administrative

Procedure Act (5 ILCS 10011

0-65(b)) (;'APA") and the holding in

Borg- Wurner Corp, v. Ailauzy,

427 N.E. 2d 415 (111.App.Ct. 1981)

("Borg-Warner"),

the CAAPP permit is stayed, upon appeal,

as a matter of law. Order,

Midwest Generation,

LLC,

Powerton Generuling Station

v.

Illinois

Environmental Projection Agency,

PCB 06-059 (February 16,2006) ("Order

1"). p. 2.

3.

Midwest Generation operates four coal-fired boilers and an auxiliary boiler at

Powerton and associated coal handling, coal processing, and ash handling activities. Coal is

crushed and prepared in the breaker building and then sent through a series of conveyors to the

bunkers. The coal is transferred from the bunkers through pulverizers to further reduce the coal

size and then blown into the boilers.

4.

Historically, emissions from the bunkers and crusher house have been controlled

by ten baghouses which were installed in 1973 and 1985 and one wet dust extractor installed in

Electronic Filing, Received, Clerk's Office, April 9, 2007

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2004. The construction permit that Midwest Generation is appealing here was issued to permit

the construction and operation of wet dust extractor control devices, installed as replacements of

the baghouses and existing wet dust extractor. The wet dust extractor creates a negative pressure

inside the coal bunkers and in the storage areas and transfer points of the crusher house so that

dust-laden air created from drops from the conveyors and from withdrawal of coal is captured.

The dust/air/water mixture passes through a mesh panel, which separates the dust particles in the

air stream.

5.

The Agency received Midwest Generation's application for the construction

permit on December 4,2006. Midwest Generation required the construction permit so that it

could install the new wet dust extractors during the planned outage which began on March

3 1,

2007. During its discussions with the Agency regarding the construction permit, Midwest

Generation learned that the Agency intended to include provisions that minored language that

has been appealed in the CAAPP permit issued to Powerton. Midwest Generation alerted the

Agency to this already-appealed language, but the Agency persisted in including such language

in the construction permit, See Exhibit 2. attached hereto. The construction permit also contains

other conditions that Midwest Generation is appealing here, as well.

11.

REOUEST FOR PARTIAL STAY

6.

Pursuant to Section

10-65th) of the Illinois Administrative Procedures Act

("APA"), 5 ILCS 100110-65, and the holding in

Borg-Warner Corp.,

the construction permit

issued by the Agency to

Powerton is not effective by operation of law until after a ruling by the

Board on the permit appeal and, in the event of a remand, until the

Agmcy has issued the permit

consistent with the Board's order.

See

Order,

Midwesf Generation, LLC, Powerton Generating

Station v. Illinois Environmental Protection Agency,

PCB 06-059 (February 26. 2006) ("Order

Electronic Filing, Received, Clerk's Office, April 9, 2007

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2"). Historically, the Board has granted partial stays in permit appeals where a petitioner has so

requested.

Cf'

Order 2 at p. 8, fn 3;

1l4id~)esr

Generalion, LLC, Will County Generating Station

v. Illinois Environmental Protection Agency,

PCB 06-156 (July 20,2006) ("Order

3")

(granted

stay of the effectiveness of contested conditions of a construction permit);

Dynegy iMidwest

Generation Inc. (bfermilion Power Stufion), v. Illinois Environmental Protection Agency,

PCB

06-1 94 (October 19,2006) (granted stay "of the portions of the permit

Dynegy contests");

Hartford Working Group v. Illinois Environmental Protection Agency,

PCB 05-74 (November

18, 2004) (granted stay of the effectiveness of Special Condition 2.0 of an air construction

permit);

Community Lund$ll Company and Cily ofMorris v. Illinois Environmental Protection

Agency,

PCB 01-48 and 0 1-49 (Consolidated) (October i 9,2000) (granted stay of effectiveness

of challenged conditions for two permits of two parcels of the landfill);

Allied Tube

&

Conduit

Corp.

v.

Illinois Environmental Protection Agency,

PCB 96-1 08 (December 7, 1995) (granted

stay of the effectiveness of Conditions

4(a), 5(a), and 7(a) of an air permit).

7.

Midwest Generation will suffer irreparable harm and the environment will not

receive the benefit of the improved pollution control devices if Midwest Generation is not

allowed to construct and operate the wet dust extractor system on the coal bunkers for Units 5

and 6 and for the crusher house at the

Powerton Generating Station. The Agency has issued a

permit for the construction and operation of the same equipment for Midwest Generation's

Crawford Generating Station without the contested language included.

See

Exhibit 3, attached

hereto. Midwest Generation's request for stay of the contested language would result in a

construction permit that is effectively the same as that for the

Crawford Generating Station, thus

providing the necessary and appropriate authorizations to install and operate the equipment in a

manner to protect the environment.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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8.

Midwest Generation requests in this instance that the Board exercise its inherent

discretionary authority to grant a partial stay of the construction permit, staying only those

portions of Conditions

3, 6(b), 6(c), 8(a)(i). 8(a)(ii)(B), 9, 10(a), lOd(ii), lO(d)(vii), lO(f), 12(a),

12(b)(ii), 12(c) as indicated in Exhibit 4. The Board similarly stayed conditions in

h'id~~est

Generution, LLC, Will County Generating Station,

PCB 06-156. In the alternative, if the Board

belicves that it must stay the entirety of an appealed condition rather than only portions of the

conditions where so indicated in Exhibit 4, Midwest Generation requests that the entirety of each

of the conditions listed above in this paragraph.

111.

ISSUES ON APPEAL

(35 1II.Adm.Code

§$

105.210(c))

9.

Midwest Generation appealed various conditions in the CAAPP permit applicable

to coal handling, including conditions containing language that has reappeared in the

construction permit issued to Powerton. The construction permit allows for operation of the new

equipment until such time as an operating permit issued to

Powerton becomes effective.

See

Exhibit 1, Condition 14.

In essence, then, the construction permit is also, at least temporarily, an

operating permit. In issuing the construction permit. the Agency is attempting to impose

operating conditions through the construction permit that have been appealed in the context of

the CAAPP permit appeal prior to the Board's decision on these points. Additionally, the

Agency is inappropriately imposing the New Source Performance Standards ("NSPS") for Coal

Handling, 40 CFR

60.Subpart Y ("Subpart Y") (attached hereto with additional pert~nent

provisions from 40 CFR 60.Subpart A as Exhibit

5

for the Board's convenience), through the

construction permit. Furthermore, the Agency is imposing requirements related to, but not

required or authorized by, Prevention of Significant Deterioration

("PSD") regulations, 40 CFR

52.21 (relevant portions attached hereto as Exhibit 6 for the Board's convenience).

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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A.

The Agency Has Inappropriately Imposed Language in the Construction Permit

That Was Appealed in PCB

Other Inappropriate Conditions in the Construction Permit.

10.

In this situation where ultimately the operating permit will be the CAAPP permit,

that the Agency included in the construction permit language appealed in the CAAPP permit in

Docket 06-059 ignores Midwest Generation's right to challenge and have a fair hearing on the

appropriateness of the language in the CAAPP permit. The implication of the language is that

the operating conditions identified in the construction permit will become the applicable

operating conditions during operation pursuant to the construction permit and eventually in the

CAAPP permit, even though that language is currently being challenged in the CAAPP Appeal.

Inclusion of such language forces Midwest Generation into this second appeal in order to

preserve the integrity of its appeal of the CAAPP permit, as well as to prevent the imposition of

inappropriate conditions in the construction permit, the state operating permit, and ultimately the

CAAPP

permit.2 It undermines the Board's authority to determine whether challenged language

is appropriate through the statutory process established in the Act by the

General Assembly. If

the Board determines that the challenged language is appropriate, then the language will become

applicable to the equipment at the time that the CAAPP permit becomes effective, as the

language is already in the CAAPP permit. If the Board determines that the challenged language

is not appropriate, then the Agency will have undermined that decision by including the language

in this construction permit (unless it is appealed), which would be rolled into the CAAPP permit

upon termination of the CAAPP appeal process under Docket

06-059. Meanwhile, if Midwest

Generation did not appeal the construction permit, the challenged language would apply during

Midwest Generation understands that the operating conditions included in the

construction permit will roll into the CAAPP permit when it becomes effective.

See Exhibit 1,

Condition 14.

Electronic Filing, Received, Clerk's Office, April 9, 2007

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the operation phase of the construction permit. The challenged language has no more stature

when included in the construction permit than it did in the CAAPP permit.

11.

Regardless of one's perspective, the Agency's inclusion of the challenged

language during the pendency of the appeal of Powerton's CAAPP permit is inappropriate.

injurious to Midwest Generation's rights under Sections 39, 39.5. and 40.2 of the Act and under

the APA, inconsistent with the Board's Order 2 in PCB 06-059 regarding the applicability of the

APA to appealed permits, and not in good faith. Midwest Generation will suffer irreparable

harm if this language is allowed to remain in the construction permit for inclusion, ultimately, in

the CAAPP permit

if the Board finds in Docket 06-059 that the language should be stricken from

the CAAPP permit. Moreover. Midwest Generation would suffer irreparable harm if it were

required to comply now, through the construction permit, with conditions that the Board may

determine in Docket 06-059 are inappropriate.

(i)

Inspection Requirements

-

Condition 8(a)(i)

12.

Condition

7.2.8(a) of the CAAPP permit issued to Midwest Generation for the

Powerton Generating Station contains inspection requirements for the coal handling operations at

the plant. Both Condition

7.2.8(a) of the CAAPP permit and Condition 8(a)(i) of the

construction permit require that

"[tlhese inspections shall be performed with supervisory

personnel or other personnel not directly involved in the day-to

[SIC] day operation of the affected

operations.

. . ."

These inspection requirements were appealed in Docket No. 06-059 at

paragraphs 117-1 18 of Midwest Generation's Appeal of CAAPP Permit ("CAAPP Appeal"), and

Midwest Generation is compelled to appeal them again here with respect to the construction

permit

13.

In addition to the apparent attempt to undermine the appeal process initiated for

the CAAPP permit, the Agency again provides no basis for this requirement. There is no basis in

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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law or practicality for this provision. To identify in a construction permit condition who can

perform an inspection is overstepping the Agency's authority.

14.

The requirement must be stricken from the permit. Midwest Generation requests

that the Board stay Condition

8(a)(i) during the pendency of this appeal.

(ii)

Inspection Requirements

-

Condition 8(a)(ii)(13)

15.

Condition 7.2.9(d)(i)(B) of the CAAPP permit requires that Midwest Generation

observe whether there arc accumulations of coal fines in the vicinity of the coal bunkers. This

condition was included in the CAAPP Appeal at paragraphs 13 1-1 32. This requirement appears

also in the construction permit at Condition

8(a)(ii)(B) despite the fact that it is under appeal in

Docket No.

06-059.

16.

There is no applicable requirement that Midwest Generation observe whether coal

fines are present. Rather, Midwest Generation is required to develop and implement a fugitive

dust plan pursuant to 35

I11.Adm.Code

3

212.309(a) and to periodically update it pursuant to

5

212.312. If the permittee does not comply with its fugitive dust plan or the Agency finds that the

fugitive dust plan is not adequate, there are procedures and remedies available to the Agency to

address the issue. However, the Agency cannot supplement a fugitive dust plan, which is the

regulatorily-required control mechanism, through a permit where there are no specific

regulations addressing the particular issue, here coal fines.

17.

Condition

8(a)(ii)(B) should be deleted from the permit, and Midwest Generation

requests that the Board grant a stay of this condition during the pendency of this appeal.

(iii)

Recordkeeping Requirements

-

Conditions lO(d)(ii) and (vii)

18.

Condition

10(d)(ii) requires Midwest Generation to provide the magnitude of

emissions of particulate matter

("PM") during an incident where the coal handling operation

continues without the use of control measures. Midwest Generation has established that it has no

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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means to measure exact PM emissions from the coal bunkers, crusher house, or wet dust

extractors. Therefore, for the Agency to require reporting of the magnitude of PM emissions is

inappropriate. Midwest Generation appealed the requirement to provide the magnitude of PM

emissions in the

Powerton CAAPP Appeal. See paragraph 129 in the CAAPP Appeal. Midwest

Generation requests that the Board stay Condition

IO(d)(ii) during the pendency of this appeal.

19.

Condition

IO(d)(vii) refers to Condition 3. which Midwest Generation has

appealed here. Therefore, because of the connection of Condition

I O(d)(vii) with Condition 3,

Midwest Generation also appeals Condition IO(d)(vii) and requests that the Board stay this

condition.

(iv)

Reporting/Notification Requirements

-

Conditions 12(a),

12(a)(ii), and 12(b)(ii)

20.

Condition

12(a) requires Midwest Generation to report deviations from the

requirements of the construction permit. Deviation reporting is not required by Illinois'

regulations and is, rather, a construct of CAAPP permitting. The construction permit is not a

CAAPP permit. CAAPP

permit conditions, including deviation reporting, will apply to the wet

dust extractors when the CAAPP permit becomes effective. Applying CAAPP requirements in

this construction permit is inappropriate and should be stricken from the permit. Midwest

Generation requests that the Board stay Condition

12(a), including its subputs, during the

pendency of this appeal.

21.

Also, Condition

12(a)(ii) requires notification of operation without customary

control measures. The last sentence of Condition

12(a)(ii) imposes a requirement to accompany

such notifications with records required by Condition

10(g)(ii). However, Condition I O(g)(ii)

does not exist. Although Midwest Generation has requested that Condition 12(a) and all of its

subparts be stayed, which would include Condition 12(a)(ii), at the least the reference to

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Condition IO(g)(ii) should be stricken from Condition 12(a)(ii), and Midwest Generation

requests that the Board stay the condition during the pendency of this appeal.

22.

Condition

12(b)(ii) requires quarterly reporting; a frequency that is a function of

the CAAPP and not of Illinois' regulations applicable to the source prior to the effectiveness of

the CAAPP permit. Also, Condition

12(b)(ii)(B) refers to Condition 12(a), appealed herein

Therefore, Condition

12(b)(ii) should be deleted from the permit, and Midwest Generation

requests that the Board stay the condition during the pendency of this appeal.

B.

The Agency Has Inappropriately Determined that the NSPS for Coal Preparation

Plants, 40 CFR

60.Subpart Y Applies (Conditions 3,9,10(a) and 12(c)).

23.

The Agency has inappropriately imposed conditions in the construction permit

based upon its determination that the replacement of the baghouses with the wet dust extractors

causes the coal bunkers to become subject to the NSPS for Coal Preparation Plants at 40 CFR

60.Subpart Y, attached hereto as Exhibit 5. The Agency asserts that Subpart Y is applicable

because the replacement of the baghouses and existing wet dust extractor with new wet dust

extractors is a modification of the bunkers after October 24, 1974. 40 CFR

5 60.250(b)

However, there has been no modification of the bunkers that would trigger the applicability of

Subpart

Y.

24.

The NSPS defines modification as follows:

any physical change in, or change in the method of operation of,

an existing facility which increases the amount of any air

pollutant (to which a standard applies) emitted into the

atmosphere by that facility or which results in the emission of any

air pollutant (to which a standard applies) into the atmosphere not

previously emitted.

40 CFR

5

60.2, attached in part hereto as Exhibit 5. The term

mod$cation

is further clarified at

40 CFR

5 60.14(e)(5):

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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The following shall not, by themselves, be considered

modifications under this part:

(5)

The addition or use of any system or device whose

primary function is the reduction of air pollutants, except

when an emission control system is removed or is

replaced by a system which the Administrator determines

to be

environmentally beneficial.

40 CFR

5 60.14(e)(5) (emphasis added), attached hereto as Exhibit 5. Because the wet dust

extractors are devices whose primary function is the reduction of air pollutants and because they

are not less environmentally beneficial than the old

baghouses or the old wet dust extractor,

whether a modification, as defined at

5

60.2 of the NSPS occurred, is a question that is never

reached. Certainly replacing a wet dust extractor with a new wet dust extractor will be equally

as environmentally beneficial. In this instance, replacing the existing baghouses with the wet

dust extractor will be at least as environmentally beneficial. Because there was no modification,

Subpart

Y does not apply and cannot be included in the construction permit. All references to

the requirements of Subpart

Y must be deleted from the permit.

25.

While an emissions limitation may be measured as the emissions exit the

pollution control device, the only equipment to which Subpart

Y can apply is to the "coal storage

system," defined as "any facility used to store coal except for open storage piles." 40 CFR

5

60.251(h), Exhibit 5. An affected facility is, "with reference to a stationary source, any

apparatus to which a standard is applicable." 40 CFR

5 60.2, Exhibit 5. USEPA Region 5 states

that "all coal storage equipment is treated collectively as one affected facility.

. . ."

Applicability

Determination, Control No. 0300127 (June 30,

2003), p. 3, attached hereto as Exhibit 7. The

"coal storage system" is all of the bunkers. That system is limited, however, to facilities

"used to

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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store coal." A pollution control device, such as a wet dust extractor, is not part of the facility that

can be regulated under Subpart

Y.

26.

Condition

3 of the construction permit provides that Subpart Y is applicable to the

wet dust extractor system. Condition 9 of the construction permit also reflects Subpart

Y

requirements. Condition 10(a) applies the NSPS recordkeeping requirements. Condition 12(c)

applies the NSPS reporting requirements. All of these conditions must be stricken from the

permit, and Midwest Generation requests that the Board stay their applicability during the

pendency of the permit appeal.

C.

The Agency Has Inappropriately Imposed Conditions That Are Inconsistent with

PSD Regulations (Conditions 6(a)-(c) and lO(ft).

27.

The Agency has

appropriate11 concluded that the proposed replacement of the old

baghouses and wet dust extractor with new wet dust extractors does not trigger PSD. The

Agency's description of its determination, however, is incomplete. Moreover, the Agency has

imposed PSD conditions that are inapplicable in light of its determination or simply not

authorized under the PSD regulations.

(i)

Non-applicability Determination -Condition 6(a)

28.

Condition

6(a) states that the Agency issued the permit on the basis that this

project is not subject to PSD for emissions of PM. Condition

6(a) lists one sufficient. but not

necessary, reason for why this project does not trigger PSD: Midwest Generation projects a

decrease in annual emissions of PM. For clarity, the Agency should have

summarizcd several

other reasons underlying this determination, each one sufficient but not independently necessary.

29.

For PSD to apply to an existing major stationary source, an existing emissions

unit must undergo a "major modification,"

i.e..

a physical or operational change that results in a

significant emissions increase and significant net emissions increase of a regulated PSD

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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pollutant. 40 C.F.R.

§

52.21(a)(2)(iii) and (b)(2), Exhibit 6. Activities that are routine

maintenance, repair, or replacement are excluded from the definition of physical or operational

change

-

and, thus, are not major modifications

-

irrespective of their impacts on emissions. 40

C.F.R.

5

52,21(b)(2)(iii)(a), Exhibit 6. Because replacement of pollution control equipment

occurs routinely, this replacement of pollution control equipment also satisfies the "routine

maintenance. repair, or replacement" exclusion from the applicability of PSD.

(ii)

Compliance and Recordkeeping Requirements

-

Conditions

6(b), 6(c), and

10(q

30.

Conditions

6(b) and 6(c) are unnecessary because, as the Agency determined, this

is not a PSD permit. Therefore, these conditions should not be included in the permit.

3 1.

Condition

10(f) requires Midwest Generation to maintain records of the

PIWPM10 emissions, on both a tons per month and tons per year basis, consistent with Condition

6(b). Because this is not a PSD source, Condition lo($, is also inappropriate and should be

struck. Even if PSD did apply, the Agency has misapplied the provision for recordkeeping. The

provision clearly conflicts

with the PSD regulations.

32.

First, Condition

lo($, references Condition 6(b). which Midwest Generation is

appealing. By requiring that records be kept "consistent with Condition

6(b)," Condition

10(f)

suffers from the same defects as Condition 6(b), which are articulated above.

33.

Second, to the extent that the Agency is attempting to reiterate the PSD

recordkeeping and reporting requirements cited in Condition

6(c), it has incorrectly articulated

those requirements. Pursuant to 40 C.F.R.

5

52.21(r)(6)(iii), an owner or operator must

"calculate and maintain a record of the annual emissions, in tons per year on a calendar year

basis." Section

52.21(r)(6) contains no requirement to calculate or maintain records of emissions

expressed as tons per month

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

34.

Accordingly. Midwest Generation requests that the Board stay Conditions

6(b),

6(c) and 10(f) during the pendency of this appeal and order the Agency to strike both from the

permit.

WI-IEREFORE. for the reasons set forth above, Midwest Generation requests that the

Board grant its petition to appeal the construction permit issued March 5, 2007,

and that it stay

all or the portions of Conditions

3, 6(b), 6(c), 8(a)(i), B(a)(ii)(R), 9, 1 O(a). I Od(ii). 1 O(d)(vii).

10(f), 12@), 12(b)(ii), 12(c) appealed herein, as set forth in Exhibit 4.

Respectfully submitted,

MIDWEST GENERATION,

I,LC

-

POWERTON GENERATING STATION

by:

Dated: April

9. 2007

SCHIFF

FIARDM, LLP

Sheldon A. Zabel

Kathleen

C. Bassi

Stephen

J. Bonebrake

Andrew N.

Sawula

6600 Sears Tower

233 South Wacker Drive

Chicago, Illinois 60606

3 12-258-5500

Fax: 3 12-258-2600

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

EXHIBIT LIST

Exhibit No.

1

Construction Permit issued to the Powerton Generating Station March 5,2007

2

Email correspondence between Andrea Crapisi, Midwest Generation, and Kunj

Patel, Illinois EPA (March 4-5, 2007)

3

Construction Permit issued to the

Crawford Generating Station April 2,2004

4

Powerton Construction Permit, redlined to indicate the specific language

Midwest Generation requests be stayed

5

NSPS. 40

CFR.Subpart A, in part, and Subpart Y. m.ecfr.euoaccess.rov

(2007)

6

PSD, 40 CFR

52.21(a)(2)(ii), (b)(2), and (r)(6)(iii), www.ccfr.epoaccess.gov

(2007)

7

Applicability Determination, Control No. 0300127 (June 30,2003)

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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[issued March

5,2007)

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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ILLINOIS

ENVIRONMENTAL PROTECTION

AGENCY

1021

Nonir

GKANI) A\,ENUC

E,\sT,

P.O.

130~ 19506,

SI'KINCIIILII, ~LLINOIS

627:14..9506 -

I

21 7) 782.21 13

Rat)

R. BI.ACO!I-VICI~,

C;OVEPNOK

D~CJCLAS

P.

SCOTT, VIKECTOK

217/782-23.13

CONSTRUCTION PERMIT

-

NSPS

PERMITTEE

Midwest Generation EME, LLC

Atcn: Andrea Crapisi

440

South LaSalle Street, Suite 3500

Chicago, Illinois 60605

&lication No: 06120004

I.D. No.: 179801AAA

Applicant's Designation:

Date Received: Decemher

4,

2006

--

subject: wet Dust Extractors for Unit.

5

&

Unit 6 Coal Bunkers

G

Crusher House

Date Issued: March 5, 2007

Location:

Powerton Generating Station, 13082

E.

Manito Road, Pekin

Permit is hereby granted to the above-designated Permittee to CONSTRUCT

emission

source(s) and/or air pollution control equipment consisting of 11

new wet dust extractor control devices (DE-1 through DE-11) for the Unit

5

and Unit 6 coal bunkers and crusher house, as described in the above

referenced application. This Permit is subject to standard conditions

attached hereto and the following special

condition(s):

la. This permit authorizes installation of 11 new wet dust extractor

control devices for the Unit

5

and Unit 6 coal bunkers and crusher

house,

replacing existing ten baghouses and one wet dust extractor, as

requested by the Permittee to improve safety and operational

performance.

For the purpose of this permit, the 'affected operations"

are the coal handling and processing operations for the Unit

5

and Unit

6 coal bunkers and crusher house following installation of the new wet

dust extractors.

b.

This permit does not authorize any increase in coal throughput limits

for the affected operations.

2.

This permit does not relax or otherwise revise any requirements and

conditions that apply to the operation of the Unit

5 and Unit 6

boilers, including applicable monitoring, testing, recordkeeping, and

reporting requirements pursuant to current operating permits issued for

this source.

3a. The affected operations are subject to the New Source

Performance

Standards (NSPS) for Coal Preparation Plants, 40 CFR 60 Subpart Y.

This requirement is being imposed because coal is prepared at the

source and the application did not demonstrate that

che changes in the

control equipment would not be modifications,

i.e., the hourly

particulate matter emissions from the affected operations would not

increase with the new air pollution control equipment.

b. i. The opacity of the exhaust into the atmosphere from each affected

operation shall not be

20 percent or greater, pursuant to the

NSPS,

40 CFR 60.252.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Page 2

ii. Notwithstanding the above, as provided by

40 CFR 60.8(c), opacity

in excess of

the above limit during periods of startup, shutdown

and malfunction, as defined by 40 CFR

60.2, shall not be

considered a violation.

c. At all times, the Permittee shall, to the extent practicable, maintain

and operate the affected operations, including associated air pollution

control equipment, in a manner consistent with good air pollution

control practice for minimizing emissions, pursuant to 40

CFR

60.11(d).

4a. Pursuant to 35 IAC 212.123(a), the emission of smoke or other

particulate matter from each affected operation shall not exceed an

opacity greater than

30 percent, on six-minute average, except as

allowed

by 35 IAC 212.123 (b) and 212.124.

b. subject to the following terms and conditions, the Permittee is

authorized to continue operation of an affected operation in violation

of the applicable limit of Condition

4(a) (35 IAC 212.123) in the event

of a malfunction or

breakdorm. This authorization is provided pursuant

to 35 SAC 201.149, 201.161 and 201.262, as the Permittee has applied

for such authorization in its application, generally explaining why

such continued operation would be required to provide essential service

or to prevent injury to personnel or severe damage to equipment, and

describing the measures that will be taken to minimize emissions from

any malfunctions and breakdowns.

i. This authorization only allows such continued operation as

related to the operation of the Unit 5 and Unit

6 boilers as

necessary to provide essential service or to prevent injury to

personnel or severe damage to equipment and does not extend to

continued operation solely for the economic benefit of the

Permittee.

ii. Upon occurrence of excess emissions due to malfunction or

breakdown, the Permittee shall as soon as practicable repair the

affected operation, remove the affected operation from service or

undertake other action so that excess emissions cease.

iii. The Permittee shall fulfill applicable recordkeeping and

reporting requirements of Conditions 10

(g) and 12 (b)

,

respectively.

iv. Following notification to the Illinois EPA of a malfunction or

breakdown with excess emissions, the Permittee shall comply with

all reasonable directives of the Illinois BPA with respect to

such incident, pursuant to 35 IAC 201.263.

v. This authorization does not relieve the Permittee from the

continuing obligation to minimize excess emissions during

malfunction or breakdown. As provided by

35 IAC 201.265, an

authorization in a permit for continued operation with excess

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

Page 3

emissions during malfunction and breakdown does not shield the

Permittee from enforcement for any such violation and only

constitutes a prima facie defense to such an enforcement action

provided that the Permittee has fully complied

with all terms and

conditions connected with such authorization.

Note: These provisions addressing continued operation during a

malfunction or breakdown event may be revised in an operating permit

addressing the affected operations.

5a. The affected operations are subject to

35

IAC 212.301. which provides

that no person shall cause or allow the emission of fugitive

particulate matter from any emission unit that is visible by an

observer looking generally toward the zenith (that is, looking at the

sky directly overhead) from a point beyond the property line of the

plant.

b. The coal crushing operations at the crusher house is subject to

35

IAC

212.321,

which provides that no person shall cause or allow the

particulate matter

(PM) emissions in any one hour period from any new

process emission unit in excess of applicable PM emissions limit

specified in

35 IAC 212.321 (c)

.

6a. This Permit is issued based on this project not being subject to PSD

for emissions of PM. In particular, the Permittee has submitted a

demonstration

comparing the past actual emissions from the existing

operations and the projected future actual emissions that would occur

after this project, showing that this project should be accompanied by

decreases in annual emissions of PM.

b. The Permittee shall, for a period beginning with the first alteration

of the control systems for the affected operations addressed by this

permit and continuing for

10 years following resumption of regular

operation after this project is completed, operate the source in such a

manner that this project does not result

in a significant increase in

emissions of and qualify as a major modification for PM emissions.

c. The Permittee shall fulfill the relevant recordkeeping and reporting

requirements of the

PSD rules, 40

CFR

52.21tr)

(6)

Iiii) and iiv), for

the affected emissions units at this source and this project, to verify

that the project has not resulted in a significant increase in PM

emissions.

7a.

i. The Permittee shall implement and maintain control measures for

the affected operations, such as enclosures and dust

extractors,

that minimizes visible emissions of PM and provide assurance of

compliance with the applicable emission standards in Conditions

3,

4, and

5.

ii. The Permittee shall operate and maintain each affected operation

with the customary control measures identified in the records

required in Condition

10 (c)

.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Page 4

b.

Operation of the affected operations shall not begin until

all

associated air pollution control equipment has been constructed and is

operational.

8a. i. The Permittee shall perform inspections of the affected

operations at least once per month, including the associated

control measures, while the affected operations are operating, to

address compliance with the requirements of this permit. These

inspections shall be performed with

supervisory personnel or

other personnel not directly involved in the day-to day operation

of the affected operation.

ii. The Permittee shall maintain records of the following for the

above inspections:

A.

~ati and time the inspection was performed and namets) of

inspection personnel.

B. The observed condition of the established control measures

for the affected operation, including the presence of any

visible emissions or accumulations of coal fines in the

vicinity of an operation.

C.

A

description of any maintenance or repair associated with

the established control measures that are recommended as a

result of the inspection and a review of outstanding

recommendations for maintenance or repair from previous

inspection(s), i.e., whether recommended action has been

taken, is yet to be performed or no longer appears

to be

required.

D. A summary of the observed implementation or status of

actual control measures as compared to the established

control measures.

9a.

i.

The Permittee shall have the opacity of the emissions from the

affected operations during representative weather and operating

conditions determined by a qualified observer in accordance

with

USEPA Test Method

9,

as further specified below.

A.

For each affected operation, an initial performance test

shall be conducted in accordance with

40 CFR 60.8 and

60.252 following installation of the new control equipment.

B. Following the initial performance test, periodic testing

shall be conducted at least annually for each affected

operation.

C.

upon written request by the Illinois EPA, testing of the

affected operations shall be conducted within

45 calendar

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

Page 5

days of the request or on the date agreed upon by the

Illinois EPA, whichever is later.

ii. A. The initial performance tests for opacity shall be

conducted in accordance with 40 CFR 60.254.

B. For periodic testing, the duration of opacity observations

shall be at least

30 minutes (five 6-minute averages)

unless the average opacities for the first

12

minutes of

observations (two six-minute averages) are both less than

10.0

percent.

iii.

A.

The Germittee shall notify the Illinois EPA at least 7 days

in advance of the date and time of these tests, in order to

allow the Illinois

EPA to witness testing. This

notification shall include the name

(s) and employer (s) of

the

cjualif ied observer (s)

.

B. The Permittee shall promptly notify the Illinois EPA of any

changes in the time or date for testing.

iv. The Permittee shall provide a copy of its observer's readings to

the Illinois EPA at the time of testing, if Illinois EPA

personnel are present.

v.

The Permittee shall submit a written report for this testing

within

15 days of the date of testing. This report shall

include

:

A. Date and time of testing.

B. Name and employer of qualified observer.

C. Copy of current certification

D.

Description of observation condition, including recent

weather.

E. Description of the operating conditions of the affected

operations.

F. Raw data.

G. Opacity determinations

H. Conclusions.

10a. The Permittee shall fulfill the applicable recordkeeping requirements

of the

NSPS,

40

CFR 60.7(b), for the affected operations subject to the

NSPS, as identified in Condition

3(a).

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Page 6

b. The Permittee shall maintain records for the amount of coal handled,

operating hours, or other measure of activity of each affected

operation on a monthly and annual basis, which data is in the terms

normally used by the Permittee to calculate actual emissions of each

affected operation.

c. The Permittee shall keep the following file(s) and log(s) for the air

pollution control equipment for the affected operations:

i.

File(s) containing the following data for the equipment, with

supporting information, which

file(s) shall be kept up to date:

I)

The design particulate matter control efficiency or

performance specification

for particulate matter emissions,

gr/dscf;

2)

The maximum design emission rate, pounds particulate

matter/hour, and 3) The applicable particulate matter emission

factor normally used by the Permittee to calculate actual

particulate matter emissions, if a factor other than the maximum

hourly emission rate is normally used.

ii. Maintenance and repair

log(s) for the control equipment, which

log(s) shall list the activities performed on each item of

equipment, with date and description.

d.

The Permittee shall maintain records of the following for each incident

when an affected operation operated without the customary control

measures

:

i. The date of the incident and identification of the affected

operation that was involved.

ii.

A

description of the incident, including the customary control

measures that were not present or implemented; the customary

control measures that were present, if any; other control

measures or mitigation measures that were implemented, if any;

and the magnitude of the particulate matter emissions during the

incident.

iii. The time at and means by which the incident was identified,

e.g.,

scheduled inspection or observation by operating personnel.

iv. The length of time after the incident was identified that the

affected operations continued to operate before customary control

measures were in place or the operations were shutdown (to resume

operation only after customary control measures were in place)

and,

if this time was more than one hour, an explanation why this

time

was not shorter, including a description of any mitigation

measures that were implemented during the incident.

v. The estimated total duration of the incident,

i.e., the total

length of time that the affected operations ran without customary

control measures and the estimated amount of material handled

during the incident.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

vi. A discussion of the probable cause of the incident and any

preventative measures taken.

vii.

A discussion whether an applicable standard, as listed in

Condition

3.

4, and 5 may have been violated during the incident,

with an estimate of the amount of any additional or excess

particulate matter emissions (pounds) from the incident, with

supporting explanation.

e. Pursuant to

35 IAC 201.263, the Permittee shall maintain records,

related to malfunction and breakdown for each affected operation that,

at a minimum, shall include:

i. Maintenance and repair

log(s1 for the affected operation that, at

a minimum, address aspects or components of such operations for

which malfunction or breakdown has resulted in excess emissions,

which shall list the activities performed on such aspects or

components, with date, description and reason for the activity.

In addition, in the maintenance and repair

logis), the Permittee

shall also list the reason for the activities that are

performed.

ii. Records for each incident when operation of an affected operation

continued during malfunction or breakdown, including continued

operation with excess emissions as addressed by Condition

3(a),

that include the following information:

A. Date and duration of malfunction or breakdown.

B. A description of the malfunction or breakdown.

C.

The corrective actions used to reduce the quantity of

emissions and the duration of the incident.

D. Confirmation of fulfillment of the requirements of

Condition 12

(b) (i)

,

as applicable, including copies of

follow-up reports submitted pursuant to Condition

12 (b) (i)

(B)

.

E.

If excess emissions occurred for two or more hours:

I.

A detailed explanation why continued operation of the

affected operation was necessary.

11. A detailed explanation of the preventative measures

planned or taken to prevent similar malfunctions or

breakdowns or reduce their frequency and severity.

111. An estimate of the magnitude of excess emissions

occurring during the incident.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Page 8

f. The Permittee shall maintain records of the PM/PMl0 Emissions

(tons/month and tons/year), from each affected operation consistent

with condition

6(b), with supporting calculations.

g.

The permittee shall keep records for any opacity observations performed

by Method 9 that the Permittee conducts or are conducted at its behest,

including name of the observer, date and time, duration of observation,

raw data, results, and conclusion.

11.

The permittee shall retain all records required by this permit at the

source for at least

5 years from the date of entry and these records

shall be readily accessible to the Illinois EPA

for inspection and

copying upon request.

12a. The Permittee shall promptly notify the Illinois EPA of deviations from

requirements of this permit for the affected operations, as follows.

such notifications shall include a description of each incident and a

discussion of the probable cause of deviation, any corrective actions

taken, and any preventative measures taken.

i.

Notification and reporting as specified in Condition

12(b) (i) for

certain deviations from an applicable opacity standard.

ii. Notification within

30 days for operation of an affected

operation without associated control equipment that continued for

more than 12 operating hours from the time that it was

identified. Such notifications shall be accompanied by a copy of

the records for the incident required by Condition

10(g) (ii)

.

iii. A. Notification with the quarterly reports required by

Condition

12 (b) (ii) for other deviations, including

deviations from applicable emission standards, inspection

requirements and recordkeeping requirements.

B. With the quarterly report, the Permittee shall also address

deviations that occurred during the quarter that have been

separately reported to the Illinois EPA, with a summary of

such deviations. For this purpose, the Permittee need not

resubmit the detailed information provided in prior

notifications and reports for such deviations.

b. Pursuant to

35 IAC 201.263, the Permittee shall provide the following

notifications and reports to the Illinois EPA, concerning incidents

when operation of an affected operation continued with excess

emissions, including continued operation during malfunction or

breakdown as addressed by Condition

3

(b)

.

i. A. The Permittee shall immediately notify the Illinois EPA's

Regional Office, by telephone (voice, facsimile or

electronic) for each incident in which the opacity from an

affected operation exceeds the applicable opacity standard

for five or more consecutive 6-minute averaging periods.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Page

9

(Otherwise, if opacity during a malfunction or breakdown

incident only exceeds or may have exceeded the applicable

standard for no more than five consecutive 6-minute

averaging periods, the Permittee need only report the

incident in accordance with Condition

12 (b) (iif

.

B. Upon conclusion of each incident that is two hours or more

in duration, the Permittee shall submit a written follow-up

notice to the Illinois EPA, Compliance Section and Regional

Office, within

15 days providing a detailed description of

the incident and its

cause(s), an explanation why continued

operation was necessary, the length of time during which

operation continued under such conditions, the measures

taken

by the Permittee to minimize and correct deficiencies

with chronology, and when the repairs were completed or the

affected operation was taken out of service.

ii. The Permittee shall submit quarterly reports to the Illinois EPA

that include the following information for incidents during the

quarter in which the affected operation continued to operate

during malfunction or breakdown with excess emissions.

A. A listing of such incidents, in chronological order, that

includes:

(1)

the date, time, and duration of each

incident,

12)

the identity of the affected operation(s)

involved in the incident, and (3) whether a follow-up

notice was submitted for the incident pursuant to Condition

12 (b) (i)

(B),

with the date of the notice.

B. The detailed information for each such incident required

pursuant to Condition

12(a). For this purpose, the

Permittee need not resubmit information provided in

a prior

report for an incident, as identified above, but may elect

to supplement the prior submittal.

C. The aggregate duration of all incidents during the quarter.

D.

If there have been no such incidents during the calendar

quarter, this shall be stated in the report.

c. The permittee shall fulfill applicable reporting requirements of the

NSPS,

40 CFR 60.8, for affected operations subject to the NSPS.

a.

Unless otherwise specified in a particular condition of this permit or

in the written instructions distributed by the Illinois EPA for

particular reports, reports and notifications shall be sent to the

Illinois EPA

-

Air Compliance Section with a copy sent to the Illinois

EPA

-

Air Regional Field Office.

b. The current addresses of the offices that should generally be utilized

for the submittal of reports and notifications are as follows:

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Page

lo

i. Illinois EPA

-

Air Compliance Section

Illinois Environmental Protection Agency

(MC

40)

Bureau of Air

Compliance

&

Enforcement Section (MC

40)

1021

North Grand Avenue East

P.O. Box

19276

Springfield, Illinois

62794-9276

Phone:

217/782-5811

Fax: 217/762-6348

ii. Illinois EPA

-

Air Regional Field Office

Illinois Environmental Protection Agency

Division of Air Pollution Control

5415

North University Avenue

Peoria, Illinois

61614

Phone:

309/693-5461

Fax:

309/693-5467

14.

The affected operations may he operated with the new control systems

pursuant to this construction permit until an operating permit becomes

effective that addresses operation of these operations

with the new

control systems.

~f you have any questions concerning this permit, please contact Kunj Patel

at

217/782-2113.

Acting Manager, Permit: Section

Division of Air Pollution Control

cc: Region

2

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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STATE OF ILLINOIS

ENVIRONMENTAL PROTECTION AGENCY

DIVISION OF AIR POLLUTION CONTROL

P.

0. BOX 19506

SPRINGFIELD, ILLINOIS 62794-9506

STANDARD CONDITIONS FOR

CONSTHUC1'LON/UEVEI.OPhfENT

PERMITS

ISSUED

HY

TIiE

ILLIXOIS ENVIHONhIENTAL PROTECTIOX AGENCY

July

1, 1985

The Illinois Environmental Protection Act (Illinois Revised Statutes, Chapter

111-1/2,

Section

10391

authorizes the

Environmental Protection Agency to impose conditions on permits which it issues.

The following conditions are applicable unless susperseded by special

condition(s).

1.

Unless this permit has been extended or it has been voided by a newly issued permit, this permit will expire one

year from the date of issuance, unless a continuous program of construction or development on this project has

started by such time.

2. The

construction or developnten: cuwrcd

by

this pcrrnit shall be done in comp1iar.c~ w~th applicable provisions of

tb.c Illinois En\,ironmcntal Prowcrion

Act

and Rr~olationa adopted by the Illinois Pollutior Control Board.

3.

There shall be no deviations from the approved plans and specifications unless a written request for modification,

along with plans and specifications as required, shall have been submitted to the Agency and a supplemental

written permit issued.

4. The permittee shall allow any duly authorized agent of the Agency upon the presentation of credentials, at

reasonable times:

a.

to enter the permittee's property where actual or potential effluent, emission or noise sources are located or

where any activity is to be conducted pursuant to this permit,

h.

to have access to and to copy any records required to be kept under the terms and conditions of this permit,

c.

to inspect, including during any hours of operation of equipment constructed or operated under this permit,

such equipment and any equipment required to be kept, used, operated, calibrated and maintained under this

permit,

d.

to obtain and remove samples of any discharge or emissions of pollutants, and

e. to enter and utilize any photographic, recording, testing, monitoring or other equipment for the purpose of

preserving, testing, monitoring, or recording any activity, discharge, or emission authorized by this permit.

5. The issuance of this permit:

a. shall not be considered as in any manner affecting the title of the premises upon which the permitted

facilities are to be located,

b. does not release the permittee from any liability for damage

to person or property caused by or resulting from

the construction, maintenance, or operation of the proposed facilities,

c.

does not release the permittee from compliance with other applicable statutes and regulations of the United

States, of the State of Illinois, or with applicable local laws, ordinances and regulations,

d.

does not take into consideration or attest to the structural stability of any unita or parts of the project, and

IL 532-0226

APC 166 Rev. 5/99

Ptinted

on

Recyckd Paper

090005

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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DIRECTORY

ENVIRONMENTAL PROTECTION

AGENCY

BUREAU OF AIR

For assistance in preparing a permit

application contact the Permit

Section.

11 iinois Environmental Protection .Agency

Division of Air Pollution Control

Permit Section

1021

N.

Grand Ave E.

P,O,BOX 19506

L.-.

s;ringf ield, Illinois 627

or a regional office of the

Field Operations Section.

The regional offices

and their

areas of responsibility are

shown on the map. The

addresses and telephone.

numbers of the regional

offices are as follows:

Illinois EPA

Region 1

Bureau of air, POS

9511 West Harrison

Des

Plaines, Illinois.60016

847/294-4000

Illinois EPA

Region

2

5415 North University

Peoria, Illinois 61614.-

3091693-5463

'

Illinois EPA

2009 Mall Street

Collinsville, Illinois 62234

6181346-5120

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

Midwest Generation,

Kunj Patel,

Illinois EPA

(March

4-5,2007)

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

Page 1 of 2

Patel, Kavita

Subject:

RE: Comments on Powerton Station Permit

"Kunj Patel" <Kunj.Patel@illinois.gov>

0310512007

11:41

AM

TO

"Andrea Crapisi" cACrapisi@mwgen.com>

CC

'Chris Romaine"

cChns.Romaine@illinois.gov>

Subject

Re:

Comments on Powelfon Station Permit

The application does not demonstrate that the new control systems will be better or equally

"environmentally beneficial" than the current systems, so the Illinois EPA cannot rely on the exemption at

40

CFR 60,14(e)(5). While the new systems may be better for workers, this is not sufficient to show that

they are

environmentally beneficial.

In particular, fabric filters are commonly recognized as achieving

99+ percent efficiency (less than 0.005

grlscf) for control of total PM emissions, with good control of PMlO emissions. The application

indicates that the new wet extractors will not achieve this level of emissions control, with maximum

efficiency of only

99 percent for total PM, an outlet grain loading of 0.03 gdscf, and only 96 to 97

percent control for respirable PM.

The application also only indicates that, in total, the air flow will be reduced by about 15 percent, from

the current level. Moreover, even if the air flow from the units will be reduced by a factor of 85 percent

or more to compensate for increased concentration of PM emissions, it is not clear that the reduction in

air flow is directly correlated with a reduction in PM emissions. Accordingly, if Midwest Generation

wants to pursue the exemption from the WSPS for these new systems, consideration needs to be given to

testing of the existing systems to establish solid information for the current levels of PM emissions.

In conclusion, the Agency will be issuing the construction permit today, as proposed, unless Midwest

Generation provides a waiver of the Agency's decision deadline

,

to allow further discussion of this

matter.

Kunj

Patel

Please note that my new Email address is kunj.patel@illinois.gov

>>>

Andrea Crapisi <ACrapisi@mwgen.com> 3/4/2007 12:25 PM

>>:

Kunj,

I have attached a redlined version of the drafl permit that you provided. We would like to request the deletion of

several items which are under appeal

in our Title V permits. These items will be resolved in the Title V process

and then applied to this equipment

in the operating permit.

Additionally, we are requesting that you remove the requirement to do follow-up

NSR submittals. This project

involves the construction of better air pollution equipment that

is also safer for the employees so we do not believe

that submitting

NSR records for ten years is required. Also, pursuant to IAC 201.146(hhh), it is even possible to

construct these sources without obtaining

a permit since it is replacing air pollution control equipment for an

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

existing unit; however it is Midwest Generation's preference to notify the agency of what air pollution control

equipment is in service for Title

V purposes.

You

will note that we also do not believe that this project is subject to the NSPS. Per 40 CFR 60.14(e)(5). it states

that the following should not be considered a modification:

(5) The addition or use of any system or device whose primary function is the reduction of air pollutants, except

when an emission control system is removed or is replaced by a system which the Administrator determines to be

less environmentally beneficial.

Therefore, since we are not replacing this with less beneficial equipment and the primary function is to reduce air

pollutants, then we do not believe it is subject to the NSPS.

Please let me know if you have any questions on our comments on this draft permit

Thanks.

Andrea Crapisi

Midwest Generation

Office (31 2) 583-61 26

Cell (312) 636-3228

acrapisi@mwgen.com

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Construction Permit Issued to

the

(issued April

2,2004)

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

ILLINOIS

ENVIKONMENTAL PROTECIION AGENCY

....

PO. Rrrr

19506,

S?aiwci#iio,

ILLlNolr

62794-3506

KENFF

(IIPR~AUO,

C)III[CIOK

211/762-2113

CONSTROCTION PEXMIT

PERMITTEE

idv vest Generation, LLC

Attn: scott

B.

Miller

440 South

LaSalje Street, Syite 3500

Chicago,

Illinols 60605

&?-1_cation NO: 04030033

I.D.

No.: 031600aIN

epolicants Deaiq_nanl-o2:

-

Date Keceived: March 11, 2004

s%ect; Control for Coal aandling System

Late-Esued: April

2.

2004

Location:

Crawford Generating Station. 3501 South lulaski Road, Chicago, cook

county

permit is hereby granted to the above-designated Permittee to CONSTRUCT air

pollution control

equipment consisting of wet dust extractor

system f.or the

coal bunkers for Units 7 and 8, ao deecribed

in

thc above referenced

application.

This Permit

is subject to standard conditions attached hereto

the fallowing special conditionls);

1.

his permit is issued based on the new wet dust extractor systems

replacing existing baghouses, to inlprove safety and operational

perfoimance. The existiny rotoclones which served as back-up control

systems to the

baghouaes, will be retained as a back-up controls for

the coal bunkers.

22.. pursuant to 35 IAC 212.123

(a)

,

the emission of smoke or other

"articulate matter from the coal bunkers for Units 7 and 8 shall not

kxcred

an opacity greater than 30 percent, except as allowed by 35 IAC

212.123(bi and 212.124.

b,

i. The opacity of particulate matter emission0 from the bunker Eor

Units

7 and

8

nhall not exceed 20 percent pursuant to the

NSPa

for coal preparat-ion plantn, 40 CFR 60, Subpart Y: Tbie

requirement is being imposed because the change in control is

matter

considered

emissions

a modification.

from coai handling

as it increases

operarzons

hourlv

ae~oclated

,

nartictilat-

-- - - - - -

with

- - -

preparatioc of coal at

thc plant.

ii

.

Notwithstanding the above, as pxovided by

40

CFR

60.8

(ci

,

opacity

in exoeoe of the above limit during periods of

startup, shutdown

and malfunction as defined by

40

CPR

60.7, ahall not be

conaidered

a violation.

c.

at all times, the coal bunkers shall be operated in accordance with

good air pollution control Practices,

as required by 40

CFR

60.11(dl

3a. The permittee io authorized to continue operation of a coal bunker in

itiolation of the applicable requirements of

*5

IAC 212.123

(Condition

2a)

in the event of a malfunction or breakdown, subject to

ttie

following provinions.

This authorization is provided pursuant to

35 IAC 201.262 as

the Permittee has submitted

"...

proof that continued

operation is required to

proviee essential service, prevent risk of

injury to personnel or severe damage to equipment."

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Page

2

i.

This authorization only allows such continued operation as

necessary ta provide essential service, prevent risk of injury to

personnel

or severe damage to equipment and does not extend to

continued operation

soLely for the economic benefit of the

Permittee. As provided by

35 IAC 201.265. this authorization

does not shield the Permittee from enforcement for any such

violation and shall only constitute

a prima facie defense to such

an enforcenent action.

ii. upon occurrence of excess emissions due to malfunction or

breakdown,

the Permittee shall as soon as practicable repair the

affected unit or remove the affected unit from service so thst

excess emissions cease. Unless the Permittee obtains an

extension from che Illinois EPA, this shall be accomplished

within

24 tours* or noon of the Illinois EPA's next business

day', whichever is later. The Permittee may obtain an extension

for up to a total of

72 hours* from the Illinois EPA, Air

Resional office. The Illinois EPA, Air Compliance Section, in

Springfield, may

grant a longer extension if the Permittee

demonstrates that extraordinary

circumstanceo exist and the unit

can not reaoonably be repaired or removed from service within the

allowed time,

it will repair the unit or remove the unit from

service as soon as practicable; and it is taking all reasonable

steps to minimize excess emissions, based on the actions that

have

been and will ba taken,

For this purpose and other related provisions, time shall

be measured from

the start of a particular incident. The

absence

of excesa emissions for

e

short period shall not be

considered to end the incident if

exceos emissions resume.

In such circumstances, the incident shall be

ooneidered to

continue until corrective actions

are taken so that urcese

emissions cease or the Pennittee takes the affected

operation out of service,

iii. The Permittee shall fulfill applicable recordkeeping and

reporting requirements of Conditions

3 (h) and 4 3c).

iv.

Following notification to the Illinois EPA of a malfunction or

breakdown with excess

emiaeione, the Permittee shall comply with

all

reasonable directives of the Illinoie EPR with respect to

such incident,

pursuant to 35 IAC 201,263.

b. Pursuant to 35 IRC 201.263, the Permittee shall maintain records for

each incident when operation of

a coal bunker continued during

malfunction or breakdown with

excess emissions, including the following

information:

i. Date and duration of malfunction or breakdown

ii.

A

description of the malfunction or breakdown.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Page

3

iii. The corrective actions used to reduce the quantity of emissions

and the duration of the incident, including

a discussion of the

transition to the

rotoclones.

iv. Confirmation of fulfillment of the requirements of Condition

4

ici

(i), as applicable, including copies of follow-up reports

submitted pursuant to Condition

4(c) (ii).

v. If excess emissions cccurred for two or more hours.

h.

An

explanation why continued operation

was

necessary

B. The preventative meaaures planned or taken co prevent

similar malfunctions or breakdowna or reduce their

frequency and severity.

C.

Pn

estimate of the magnitude of excess emissions occurring

during the incident.

4a.

Particulate matter emissions Erom each coal bunker shall nor. exceed

0.83

lblhour and

6.0

tons/year.

h.

Notwithstanding the above, parCiculare matter emissions

€cam

a coal

bunker may exceed

0.83

Ib/hour during a malfunction or breakdown. This

authorization is subject to the same

terms and conditions established

in condition 3 for exceedance of the opacity standard during a

malfunction and breakdown.

c.

pursuant to 35 I1C

201.263,

che Permittee shall provide the following

notifications and reports to

the Illinois EPn, Compliance Section and

Regional Office, concerning incidents when operation of

a coal bunker

continued during malfunction

or breakdowns.

i. The Permiztee shall notify the Illinois

EPA's

Regional Office, by

telephone (voice, facsimile or electronic)

aa soon as possible

during normal working hours for each incident in which the

opacity from

a coal bunker exceeds 30 percent for more than five

consecutive 6-minute averaging perioda. (Otherwise,

if opacity

during a malfunction or breakdown incident only

exceed9

30

percent for lees than five consecutive 6-minute averaging periods

in a row. the

Pennittee need only report the incident in the

quarterly report.

l

ii.

upon conclusion of each incident that is two hours or more in

duration,

the Permittee shall submit a written follow-up notice

to the Illinois

EPA. Compliance Section and Regional Office.

within

15 days providing a detailed explanation of the event, an

explanation why continued operation of an bunker was necessary,

the length of time during which operation continued under such

conditions, the measures taken by the Permittee to minimize and

correct

deficienoie~ with chronology, and when rhe repairs were

completed or when the coal hunker was taken out of service.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

Page 4

d. These provisions addressing continued

operation during

a malfunction or

breakdown event may be

revioed in the

CAAPP permit for the source.

5a. The Permittee shall perform inspections of the

operations of the

affected units

as necessary but at least once per month, including the

associated control measures, while the affected units are in operation.

to confirm compliance with the requirements

of this permit.

b. The Permittee shall maintain recorde of the following for the above

j nspections

:

i. Date and time the inspection was performed and name(=) of

inspection personnel.

ii. The observed condition of the established control

measures for

the affected unit.

iii.

A

description of any maintenance 01. repair associated with

cntitblished control measures that is recommended as a result of

the inspection and

a review of outetanding recommendations for

maintenance or repair from previous

inspection(s), i.e., whether

recommended action ham been taken, is yet to be performed or no

longer appears to be required.

iv.

A summary of compliance compared to the established control

measures.

6. Upon written request by the Illinois EPA, the Permittee shall conduct

observations of opacity

Lor a coal bunker in accordance with USEPA

Reference Method 9.

7. The Permittee shall maintain the following records for Unit

7

and 8

coal bunkers

:

a.

A

maintenance and repair logs for each dust extractor syatem,

including the date and nature of maintenance and repair

activities performed.

b. operating and maintenance logs for

rotoclones, including date and

period of operation.

c. To demonstrate compliance with Condition

4la1,

the Permittee

shall keep

recorde for particulate matter emissions from a coal

bunker

(tone/manth and tons/yr), with supporting calculations.

d. Records for any opacity observations performed by Method

9 that

Permittee conducts or are conducted on its behalf to demonstrate

compliance with Condition

2, Including name of the observer, date

and time, duration of observation, raw data, and conclusion.

a.

~ll records required by this permit shall be retained at the aource for

at least

5 yeare from the date of entry and shall be readily acceseible

to the Illinois

ZPA

for inspection and copying upon request.

9.

he coal bunkers Lor Units 7 and

B

may be operated with the new wet

dust extractor systems pursuant to this construction

permituntil a

CAAPP

permit

ie

issued for the source that addresses these systems.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

Page

5

9.

The coal bunkers for Units

7 and

8

may be operated with the ncx wet

dust extractor systems pursuant

to this construction

permit

until a

C~APP permit is issued for the source char addresses these systems.

rf

you have any questions concerning this,

please contact

Kunj

Pace1 at

217/782-2113.

Donald E. sutton.

P

.E.

Manager,

Prrmi t Section

Division of

Air Pollution control

UES:KMP: jar

cc: Region 1

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

Exhibit

4

Redlined Version of the

Construction Permit Issued to

the

Powerton Generating Station

Identifying Those Portions of the

Permit That Midwest Generation

Pendency of This Appeal

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

CONSTRUCTION PERMIT

-

SSPS

Midwest Generation EYE, LLC

Attc: Andrea Crapisi

440 South LaSalle Street, Suite 3500

Chicago, Illinois

606C5

Appiication No: C612C304

1.D.

No.: li960LATW.

Appiicant'

--A

s Designat; on:

Date Received:

........

December 4,

2036

Set: We: DLlst Ex:ractors for Unit 5

&

Unit 6 Coal Bnnkers

&

Crlusher

House

Date Issued:

.-

March

5, 203i

Location: Powerton Generaticg Station, 13CY2 E. Manito %ad, Pekln

Permi: is hereby gracted to che abovc-designated Permittee t.0 CONSTRUCT

enission

source(s) and/or air pollntion control equipnent consisting of

11 new wor dust extractor conLrol devices (3E-1 through 3E-11) for the

Unit

5 and Unit 6 coal bunkers and crasher house, as described in the

above referenced applicarion. This Permit is

subjecr cc standard

conditions

atcached herezo and the foliowing special. candition:~):

13.

This permit authorizes installation of I1 new wet dust extractor

control devices for +:he Unit 5 and Unit 6 coal bunkers aad

crcsher house, replacing existing ten haghouses and one we: dncst

extractor, as requeszed by the Permittee to inprove safety and

operational performance. For the purpose of

this permi:, the

"affected operaricns" are che coal handling and processing

?perations for the Uzit

5

and Unit 6 coal hurkers acd crxsher

house following instal?atioe of the new wet d,~st ext:ractors.

b. This permit does not authorize any increase in coal thro:ighpcx

iinits for the affected operations.

2. This permit does nor relax or otherwise revise any requirements

and

condirions that apply to the operation of the Unir

3

acd Unit

6 boilers, including applicable monitoring, resting,

recordkeepiny, and

reporting requirenents pursuac: to curre?t

operating pernits issxed for this source.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

42. Pursuant to 35 IAC 212.123(a), the emission of smoke or other

particulate ratter from each affected

operation shall nor exceed

an opacity greater than 30 percent, on six-minute average, except

as allowed by 35

IAC 212.123:b) and 212.124.

b. Subject to rhe following terms and conditions, the

Permittee is

a.;thorized ro continze operation of an affecied operatj.cn ir.

violation of the applicable limit of Condition 4(a; (35 iAC

212.123) in the event cf a malfunction or breakdown. This

assthoriz~tion is provided pursuant to 35 IAC 2C1.149, 201.161 ard

20L.262, as the Permittee has applied for such a;thorizatior! in

its application, generally

explainieg why such continued

operation woul d be required ro provide essenriai service or to

prevent injury to personnel or severe damage to

eq:~ipmenr, and

describing

the measures that will be raken to ?,ininire emissions

from any ma;functions and breakdowns.

i. This authorization only aliows such continzed operation as

related to the operation

of the Unit 5 and Unit 6 boilers

as necessary to provide essential service or ro prevent

Lnjsry to personnel or severe damage to equipment and does

not

exte?d to conti~ued operation solely for the econcnic

benefit

af the Permittee.

ii. Upon occurrence of excess emissions

dse to maifunction or

breakdown, tie Permittee shall as soon as practicable

repair the affected operation, remove the affected

cperation from service or undertake other action so that

excess emissions cease.

111.

. . .

The Permittee shall ful:i:l applicable recordkeeping and

reporting requirements of Conditions

10(g) and 12(b),

respectively.

iv. Following notification to the Illinois EPA of a malfuncrion

or breakdown with excess emissions, the Permittee shall

comply with all reasonable directives of tke Illinois

E?A

with respec: to such incident, pursuant to 35 IAC 231.263.

v. This authorization does not relieve the Permittee iron the

continuing obligation to minimize excess emissions

ddring

nalfuncrion or breakdown. As proviaed by 35 IAC 201.265,

an

authorizatio? in a permit for continxed oaerarion with

excess ezissicns during malfunction and breakdown does no:

shield

rhe Permittee from enforcement fcr any s~ch

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

violation and only constitutes a prima facie defense to

such an enforcement action provided that the

Permittee has

f;Lly comzlied with a11 terms and conditions ccnnected with

such

a-thoriration.

Note: These provisions acidressing contin-ed operario?. =;ring a

malfunction or breakdown event may be revised in an operating

permit addressing rhe affected operations.

5a. The affected operations are subject t3 35 14C

212.3C1,

which

provides

chat no persoc shall cause or allaw the enission 3E

fugitive particulate matter from any enission ;nit that is

visible by an observer looking generally tcward the zenith (that

is, looking

ar the sky directly overhead) from a point beyond

tne

property line of tie plant.

b. The coal crzshing operations at the crusher house is subject to

35

IAC 212.32:, which provides that no person shail caase or

allow the

parriculate natter (PM) enissians in any one hour

period

fron~. any new process eaission t~ni.: in excess of applicaole

Pa emissions lini~ specified ii 35 IAC 212.321(c).

Ea. This ZerrniL is issled based 03 this project rcr beirg snbject ro

PS3 for emissiocs of PM. In particular, the Perr~ittee has

submitted a demonstration

comparing the past acrual emissions

fror the existino operations and the pro3ecied fut.ure actuai

emissions

chat wo~ld occur after this project, showing that this

project should be accompanied by decreases in

annval emissions of

PM.

7a. 1. The Permittee shall. implement and maintain conrrcl measures

for the affected operations, such as erclosures and dust

extractors, that minimizes visible emissions of PM and

provide assurance of compliance with rhe appiicable

emission

sta-dards in Conditions 3, 4, and 5.

11.

. .

The Permittee shali operate and maintain each affected

operation with the

c'Jstomary contro: neasures icentifieci in

the records required in Condition

10(c).

b. Operarion of the affected operations shall ?or begin anti1 all

associated air

pollnrion control equipmen; has been constructed

acd is operational.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

83. 1..

Tho Permittee shall perforn inspec:icrls of the affected

operations at least once per month,

inciudirg the

associated control neasures, while

the affected operations

are

operacing, to address compliacce with the requirements

of this permit.

?*~:;:

; ,.:

*~+:>.<++-

......

L&,

--.-

A

fe

.H~+,-L

+

. .

.....

-.

....

".= .--.

l'.'J"""XL'".""

..r:... ...., ..........

--.-

~."-<~..r..

"i-'.F;.h~.'

'

y'

*-w&.c&i--<*~+..

w-v

, , . ,.

i-.+h*L-L".f7~+-i--?e

i)+w***-i-

ii. The Fermittee shall maintain records of the following for

the

above inspections:

A. Date and tine the inspection was performed and

namelsi of inspection personnel.

B. The observes condition of the established con~rcl

.

.

measxres for he affected operation7--+---,+/*i+st-ti::

.

~

.

..............

>&,S

-..--+:.

<T*

e.2M..+3.*+3..&<>:*+e...

h4:w*T.*?+<y!++r!.

.

",:

...% -:.

.

..............

:

,,

1,

~~x::

...+ ~..-'-.

1.

.....

. .* ..,.

..y:

... ..z$~,:c:..*<r:?

.:.\*..

.+,~E--r..z...

..,

..:>F7+:~Fv>E..*$:,?:

.

,-

G.

A description of any maintenance or repair associated

with the established control measures that are

recormended as a result sf tb:e inspection and a

review of cutstarding

recommendations for naintenarce

or repair from previous inspecrionls), i.e., whether

recommended action has been

zaken, is yet to be

performed or no Longer appears

to be required.

D.

A sumnary of the observed impiemenia~ior! or statx~s of

actzal controi measures as compared to the

established control. measnres.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

i

.,.

~-2

s--l.-t*i&.--l~i--ii.;;i

.,.

, .

~.,T..

..............

. .: ....

..% ..-+...

,

..

.-<-

,

.... :.* ...+, +...

L.,

7T:

- ,~

7+*~~~-+2'?*er*>~-*~

b. The Permittee shall maintain records for the amount cf coal

handled, operating hours, or other neasore of activity of each

aifected operation on a monthly and annual basis, which daia is

in rhe terms normally used

cy tie Permittee to calculate actual

emissioss of each affected operazion.

c. Tke Permittee shall keep the following file(s) a-d log(s) for the

air pollution control

equipmert for the affected operations:

i. File(s) containing the follcwinq data for Ehe equipment,

with supporting

infornazioi:, which file(s) shall be kept up

to date:

I)

The desig2 particslate matter control

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

efficiency cr perfcrma-ce specification for particulate

matter

er.issions, gr/dscf; 2) 'The maximum design emission

rate,

posnds particuiate matter/hour, and 3) The ap~licabie

particulate matter er'issior factor lorrnally xed by the

Permittee

to calculate acrual pariiculare matter enlissions,

if a factor other than the maxim~sm hourly emission rate is

normally used.

ii. Maintenance and repair

1og:s) for che control eqzipment,

which log(s) shall list the acriviries performed on each

item of equipment, with date end description.

d. The Permittee shall maintain records of the tol?cwing for each

incidenc when an affected operation operated withosr the

customary

conrrol neesores:

i. The dare of the incident and identification

af

the affected

operatio? that was involved.

11.

. .

A description of the incident, including the c,~stomary

control measures thar were not present cr ir~piementel; the

custonary control meascres

tiat were present, if any; other

concrcl measures or mitigation measures chat were

I

. ,

implement ed, if

any~~--+.++i-r+~+-iii:jir~~+ii-=i-:

,

,

Fi&;.:..i;.L

~ ..-.* +

*;.3-!iji,

4..2-,

(,i:.i.ii

: ~.>;

=...

jl./_._-..~.l-.;lji.-_.I

. . ~ .

<:~. ~ .

iii. The tine at and means by which the incident was identified,

e.g., schedsied inspection or observation by operaring

personnel.

iv.

P?,e length of time after the incident was identified that

the

affected operations csntirued to 0pera.e before

customary control measures were in place or

the aperarions

were shutdown (to resume operation on;y after customary

control

neasures were in piace) and, if this time was more

than one hour,

ar: explanarion wk.y this time was not

shorter, including a

descriptior) of any mitigation measures

that were implemented during the incident.

v. The estimated total duration of the incident, i.e., rhe

toral lengrh of ti~,e that the affecLed operations ran

without custonary control measures and

rhe esrirnated amount

of

mareriai handled durinp the incidenr.

vi. A discussion of the probable cause of :he incidenr and any

preventative meascres raken.

e. Pursuant to 35 IAC 201.263, the Permittee shall mainrain records,

relared cc maifunc:ion and breakdown for each affccred operation

that, at

a minimam, shall include:

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

-.

Maintenance and repair log(s) for the affected operation

that, at a minimum, address aspects or components of

sach

operations for which malfunction or breakdown has resulted

in excess

enissions, which shall Lis: the activities

performed on

sxch aspects or components, with date,

description and reason for the activity. In addition, in

the maintenance and repair

log(s1, the Pern.ittee shall alsc

list the reason for

the activities that are perfcr~ed.

ii. Records for each izcident when operation of an affezted

operation continued during malfuncrion or breakdowr:,

including continued operation wick? excess en.isslons as

zddressed by Condition 3(a), thar inciude the iol'owing

information:

A. Date and duration of malt~nction or breakdown

B. A description of the aali~nc:ion or breakdown.

C. The corrective actions osed to reduce

the quantity of

emissions and the

durarion of the incidenr.

D. Confirmation of fnlfillment of rhe require3ents of

Condition

1 (i, as applicable, including copies

of follow-up reports submitted psrsuant to Condition

12 (b) (i) (B)

.

E. if excess emissions occurrec tor two or more hours:

A.

A detailed explaration why continued operation

of the affected operation was necessary.

?I.

A detailed explanation of the preventazive

measures planned or taken ro prevent similar

malfuncticns or breakdowns or reduce their

frequeccy and severi~y.

III. An estimate of the magnitude of excess

emissions occurring during the incident

g.

The Permittee shall keep records for any opacity observations

perforned by Yethod 9 that the Per~nirtee conu;cr:s or are

conducted at its behest,

Lnciuding name of the observer, date and

time,

duration of observat:ion, raw data, res-lrs, and concl~sion.

11. The Permittee sha;l retain all records required by thls perm.t at

tie source for at least

5 years from the date of enrry and these

records shall be readily accessible to the Illinois

EPA for

inspection and copying upon request.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

.

-i.*I.-;-.i--.t.

il

..?.-.--;.i?-Y;--.

.- .

.

.

",a

..........

....

Mi.'-."

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- ..

i;

.- ...

.<:

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.

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........ Mi:

b. Pnrsuant t.o 35 LAC 201.263, the Permi~tee shall provide tie

fo;:owing notifications and reports ro the Illinois EPA,

concerrling ircidents when operatior of an affected operatior

continued 1~7it.k excess emissicns, including continued operation

during

mzlfunction or breakdown as addressed by Condition 3(b)

i. A. The Permittee shall in~ediately riotify the Illinois

EPA's Regional Office, by telephone [voice, facsimile

or electronic) for each incident in which the opacity

from an

affectea operaiion exceeds tb.e applicable

opacity standard for five or more corsecutive

6-

liinute averaging periods. (Otherwise, if opacjz)?

during a malfunction or brezkdown incident only

exceeds or may have exceeded

the applicable standaru

for no

nore thac five consecutive 6-~.?nut.c averaginq

periods, tile Permittee ?ced only report the incide~lt

in accordarce wirh Condition 12 (b) (ii

) . :

3.

Upon concl~sion of each inciaen- t.k.az is two hcurs or

more

i? duration, the Pernitiee shall subnit a

writLen follow-up norice io the Illinois EPA,

CompLia-ce Section and Regional Oftice, within 15

days providing a detailed description of the incident

ard

its cause!s;, an expianation why continued

operatLoc was necessary, the length of t.ime during

which

operation continued nnder such conditions, the

measures taken

by the Permitree to miciniie and

correct deficiencies

with chronology, and when the

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

repairs were completed or the affected operation was

taken out of service.

ii,

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.

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13a. Uni.ess o~herwise specified ii? a particular condition of this

pernlt or in the writte~ instructions distributed by the Illinois

EPA for particular reports, reports acd nolifications shall be

sent to the Illinois EPA

-

Air Conpiiance Section wirh a copy

sent to the Illinois EPA

-

Air Regional Fie1.d Office.

b.

The current addresses of the offices thar should generaily be

utilized for the submittal of reports and notifications are as

follows:

-. i

Illinois

E;PA

-

Air Ccnpiiance Section

Illinois Environmental Protection

Agercy (MC 40)

Bureau oi Air

Compliance

&

Enforcement Section (MC 40)

1021 North Grand Avence East

P.O.

Sox 19276

Springfield, Illinois 62794-4276

Phone: %17/792-5811

..-

rax: 217/782-6349

1:.

. .

Illinois EPA

-

Air Regional Field Office

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

Illinois Environmen~al Prot:ectio~ Agency

Division of Air Pollntion Control

5415 North

Universixy Avenue

Peoria, Illinois 61614

Phone:

309/693-5461

Fax: 339/633-5467

14. The affected operations may be operated with the new conrrol

systems pursuacr to zhis construction permic cntil an operating

pernic becomes effective chat addresses operatio- of these

operations with the new control systems.

If you have a-y questions coccfrning this permit, piease contact Kunj

Patel at 217/782-2113.

Edwin C. Bakowski, P.E.

Acting Manager, Pernit Section

Division of Air Pollution Control

cc: Region 2

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

Illinois Environnental Protection Agency

Division of Air

Pollfitioc Control

5415 North University Avenue

?eoria, Iilinois 61514

Phone:

309/693-5461

Fax: 339/693-1467

14. The affected operarions may be operared with the new control

systens pursuact to this constructi?n permit until an operating

permit becomes effective

tha; addresses operation of these

operations

wich the new controi systens.

If you have any questions coficerning :his

permic,

please

contact

Kucj

Pztel at 217/'782-2113.

Edwin C. Bakowski, P.E.

Acting Manager, Permit Section

DLvision of Air Pollution Control

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Exhibit

and

Subpart Y

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

---

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Title 40: Protection of Environment

PAJT 60-STANDARDS OF PERFORMANCE FOR NEW STATIONARY SOURCES

Subpart A-General

Provis~ons

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§

60.2

Definitions.

The terms used in this part are defined in the Act or in this section as follows:

Act means the Clean Air Act (42 U.S.C. 7401 et

seq. )

Administrator means the Administrator of the Environmental Protection Agency or his authorized

representative.

Affected facility means, with reference to a stationary source, any apparatus to which a standard is

applicable.

Ailt?rr~al,.~c

rilelhod means any method of sampl,lg and analyzing for an alr pollutant rvhlch 1s not a

reference or

eqlr~valent method but which has heen demonstrated to the Admin~strator's sdt~sfact~on

to,

in specific cases, produce results adequate for his determination of compliance.

Approvedpermitprogram means a State permit program approved by the Administrator as meeting the

requirements of part 70 of this chapter or a Federal permit program established in this chapter pursuant

to Title

V of the Act (42 U.S.C. 7661).

Capital expenditure means an expenditure for a physical or operational change to an existing facility

which exceeds the product of the applicable "annual asset guideline repair allowance percentage"

specified in the latest edition of Internal Revenue Service

(IRS) Publication 534 and the existing facility's

basis, as defined by section 1012 of the Internal Revenue Code. However, the total expenditure for a

physical or operational change to an existing facility must not be reduced by any "excluded additions" as

defined in IRS Publication 534, as would be done for tax purposes.

Clearl

ccnl

reclinology demorislral~on prolect means a project dslng funds appropriated under tho

hoad~nc 'Department of Energy-Clean Coa Technoloqy',

..

up

~

to a total amount of S2 500000,000 for

commerc,al delnonstrat~otis of clean coal tochnoloyy, or slmilar projects funced tnrougn approprlatlons

for the En ,,ronmental Protect~on Agency.

Commenced means, with respect to the definition of new source in section

111(a)(2) of the Act, that an

owner or operator has undertaken a continuous

program of construction or modification or that an owner

or

operato; has entered into a contractual obligatio<to undertake and complete, within a reasonable

time, a continuous program of construction or modification.

Construction means fabrication, erection, or installation of an affected facility

Continuous monitoring system means the total equipment, required under the emission monitoring

sections in applicable subparts, used to sample and condition (if applicable), to analyze, and to provide

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Electronic Code of Federal Regulations:

a permanent record of emissions or process parameters

Page 2 of 4

Electric utility steam generating Unit means any steam electric generating unit that is constructed for the

p.irpo5e of suppI)ing more than one-third of its potential eiectrlc outp~t capacit) and more than 25 M\h

electrl~ai o~tput to any utility power distr~bution system for 5ale Any steam suppl~ed to a steam

dtsfr,bot!on s;*stem fo; the purpose of provid~ng steam to a steam-eiectric generator that would produce

electrical

energ) for sale cs also considered in determining the electr,cal enerqy output capacity of the

affected facility:

Equivalent method means any method of sampling and analyzing for an air pollutant which has been

demonstrated to the Administrator's satisfaction to have a consistent and ouantitativelv known

relat~onshrp to the reference method, under specified condrtrons

Excess Emissions and Monitoring Systems Performance Reporf is a report that must be submitted

periodically by a source in order to provide data on its compliance with stated emission limits and

operating parameters, and on the performance of its monitoring systems.

Existing facility means, with reference to a stationary source, any apparatus of the type for which a

standard is promulgated

in this part, and the construction or modification of which was commenced

before the date of proposal of that standard; or any apparatus which could be altered in such a way as

to be of that type.

isokinetic sampling means sampling in which the linear velocity of the gas entering the sampling nozzle

is equal to that of the undisturbed gas stream at the sample point.

Issuance of a part 70 permit will occur, if the State is the permitting authority, in accordance with the

rcrjuiremcnrs of part 70 of th~s chapter and the applicable, approvEd State perm t proyram. When tho

EPA is the

permiit~nq authority issuance of a i(tic V perm11 occurs immeaiatel, after Ine €PA tahes final

action on the final

Malfunction means any sudden, infrequent, and not reasonably preventable failure of air pollution control

cquiprnent process equipment, or a prccess to operate in a normal or us~al manner. Failures that arc

caused in pan

b) poor rn;r.ntenance or careless operation are not malfunctions.

Modification means any physical change in, or change in the method of operation of, an existing facility

which increases the amount of any air pollutant (to which a standard applies) emitted into the

atmosphere by that facility or which results in the emission of any air pollutant (to which a standard

applies) into the atmosphere not previously emitted.

Moflrlcring dev~ce means tne tola equipment, required unaer the monitoring of operations scct~ons in

appl~cable subparts. us~d

to measure and record (if appl~caDle) process parameters

Nitrogen oxides means all oxides of nitrogen except nitrous oxide, as measured by test methods set

forth in this part.

One-hourperiad means any 60-minute period commencing on the hour.

Opacity means the degree to which emissions reduce the transmission of light and obscure the view of

an object in the background.

Owner or operator means any person who owns, leases, operates, controls, or supervises an affected

facility or a stationary source of which an affected facility is a part.

Palt 70permit means any permit issued, renewed, or revised pursuant to part 70 of this chapter

Panrculate riiatter means any flnel) div~aed solid or liquid mater~al other than uncomb~ned .uater as

measured

by the reference rnctliods specified under edCh applicable

. .

suopan, or an equ,valenl or

alternative method.

Permit program means a comprehensive State operating permit system established pursuant to title

V of

Electronic Filing, Received, Clerk's Office, April 9, 2007

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Electronic Code of Federal Regulations:

Page 3 of 4

the Act

(42

U.S.C.

7661)

and regulations codified in part

70

of this chapter and aoplicable State

reg.latons, or a comprehenstvc~cdera~

operating ;,ermlt system cs:ab~ shed pursuant to t!!le

\I

of [he

Act And rtgulatcons codifled in this chapter.

Permitting authority means:

(1)

The State air pollution control agency, local agency, other State agency, or other agency authorized

by the Administrator to carry out a permit program under part

70

of this chapter; or

(2)

The Administrator, in the case of EPA-implemented permit programs under title V of the Act (42

U.S.C.

7661).

Proportional sampling means sampling at a rate that produces a constant ratio of sampling rate to stack

gas flow rate.

Reactivation of a

verv clean coal-fired electric utilitv steam aeneratina unit means anv

..

phvsical

.

chanae

or change in the metiiod of operation asso~.iated Kith rhc commencement of commercial opera!ions'ly a

coal-fired utility unlt after a period of d~scunt~nuea

operation ~bhere the Lnit

(1)

Has not been in operation for the two-year pcrloa pr<or to tne enactment of the Clean Alr Act

Amendmetits of

1900,

and the em,ssions from such unll contln~c to bc carriea in the $ermlt!lnq

-

authority's emissions inventory at the time of enactment;

(2)

Was equipped prior to shut-down with a continuous system of emissions control that achieves a

removal efficiency for sulfur dioxide of no less than

85

percent and a removal efficiency for particulates

of no less than

98

percent:

(3) Is equipped with low-NOXburners prior to the time of commencement of operations following

reactivation; and

(4)

Is otherwise in compliance with the requirements of the Clean Air Act.

Reference method means any method of sampling and analyzing for an air pollutant as specified in the

applicable subpart.

Reoowerina means reolacement of an existina coal-fired boiler with one of the followina clean coal

te&nologi&: atmospheric or pressurized fluidized bed combustion, integrated gasiticaion combined

cycle, magnetohydrodynamics, direct and indirect coal-fired turbines, integrated gasification fuel cells, or

as determined by the Administrator, in consultation with the Secretary of Energy, a derivative of one or

more of these technologies, and any other technology capable of controlling multiple combustion

emissions simultaneously with improved boiler or generation efficiency and with significantly greater

waste reduction relative to the oerformance of technoloav in

widesuread commercial use as of

Novcmbcr

15 1990

Repowerlng shall also include anfit1 and or gas-hrcd untt which has been awacded

dean coa technology demonstratiun fundtng as of January

1, 1901.

by the Departmen1 of Energy

Run means the net period of time during which an emission sample is collected, Unless otherwise

specified, a run may be either intermittent or continuous within the limits of good engineering practice

Shutdown means the cessation of operation of an affected facility for any purpose

Six-minute period means any one of the

10

equal parts of a one-hour period

Standard means a standard of performance proposed or promulgated under this part.

Standard conditions means a temperature of

293

K

(68F)

and a pressure of

101.3

kilopascals

(29.92

in

Hg).

Startup means the setting in operation of an affected facility for any purpose.

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Electronic Code of Federal Regulations:

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State means all non-federal authorities, including local agencies, interstate associations, and State-wide

programs, that have delegated authority to implement: (1) The provisions of this part;

andior (2) the

permit program established under part 70 of this chapter, The term State shall have its conventional

meaning where clear from the context.

Stationary source means any building, structure, facility, or installation which emits or may emit any air

pollutant.

T~tle Vpermrr means any perm t ~ssued renewed or rev~sed pursuant to Federal or State rcqulatlons

csta~l~shccl

to iniplement title V of the Act (42 U S C 7661) A t,rlc V permit tssued

by

a Statc pcrmlttlnq

authority is called a part 70 permit in this part.

Volatile Organic Compound means any organic compound which participates in atmospheric

pho~oche~~cal

reactions: or which

is

measured by a reference method, an cq~iv;jleill nlerhod 3n

almrnatl\c metnod, or hhich 1s determl'ied by procedures specified under any subpart.

144 FR 55173, Sept. 25, 1979, as amended at 45 FR 5617, Jan. 23, 1980; 45 FR 85415, Dec. 24,1980;

54 FR 6662, Feb. 14,1989; 55 FR 51382,

Dec. 13,1990; 57 FR 32338, July 21,1992; 59 FR 12427,

Mar. 16,

19941

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Section 508

i

Accesslb#lity

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Title 40: Protection of Environment

PAiiI 60--SIAhUARi)S

OF

PCRrORMAkCk FOR hE'N STATIONr!RY SOL:ICLS

Subpart A-General Provlslons

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g 60.14 Modification.

(a) Except as provided under paragraphs (e) and (f) of this section, anv

..

vhvsical

.

or operational chanae

to an ehtst ng facflity nhicn results;n an increase lntne emfsslon rate to the armosphere of any pollutan~

to ~ntch

a standaro applies shal be considered a mod~f~catlon

wlthtn tne mean na of section 11 1 of tne

Act. Upon modification; an existing faciiity shall become an affected faciiity for

each pollutant to which a

standard applies and for which there is an increase in the emission rate to the atmosphere.

(b) Emission rate shail be expressed as kglhr of any pollutant discharged into the atmosphere for which

a standard is applicable. The Administrator shali use the following to determine emission rate:

(1) Em ssion facturs as spestf.ed tn the laresl ~ssue of 'Comp. ation of Atr Po1l;ltant kmlssion Factors '

CPA P~bltcat~on

No AP-47. or orner cmlsslon facrurs determined

b)

tnc Admlntsrraror to be sdperfur to

AP-42 em~ssion factors, n cases where utillzat~on of emtsslon factors demonstrares that the cmlssNon

level resulting from the pnysical or uperatfonal change will etther clearly ,ncreasc or clcarly not Increase.

(7)

klatertal Dalances, continuous monitor data. or manual etnission tests in cases where ut, tzation of

emtssnn factors as referenced in paraqraph

-.

(b)(l)

....

of thls sectton ooes nor demonstrate to the

Administrator's satisfaction whether the emission level resulting from the physical or operational change

will either cleariy increase or clearly not increase, or where an owner or operator demonstrates to the

Administrator's satisfaction that there are reasonable grounds to dispute the result obtained by the

Administrator utilizing emission factors as referenced in paragraph

(b)(l) of this section. When the

emission rate is based on results from manual emission tests or continuous monitoring systems, the

orocedures

soeciiied in aooendix C of this Dart shall be used to determine whether an increase in

emission rate has occurred. Tests shall

beconducted under such conditions as the Administrator shall

s~ecifv

.

,

to the owner or ooerator based on re~resentative oerformance of the facilitv. At least three valid

test runs must be condudted before and at least three after the physical or operatidnai change. ~ii

ooeratino Darameters which mav affect emissions must be held constant to the maximum feasible

degree

g;ail test runs.

(c) The addition of an affected faciiity to

a stationary source as an expansion to that source or as a

replacement for an existing faciiity shail not by itself bring within the applicability of this part any other

faciiity within that source

(d) [Reserved]

(e) The following shali not, by themselves, be considered modifications under this part:

(1) Maintenance, repair, and replacement which the Administrator determines to be routine for a source

category, subject to the provisions of paragraph (c) of this section and

$60.15.

(2) An increase in production rate of an existing facility, if that increase can be accomplished without a

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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Electronic Code of Federal Regulations:

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3

capitai expenditure on that facility

(3) An increase in the hours of operation.

14) Use of an alternative fuel or raw material if. orior to the date anv standard under this Dart

,~

becomes

~~~~ ~-

appiicable to that source type, as provided by $30.1, the existing ficiiity was designed to accommodate

that alternative use. A facility shall be considered to be designed to accommodate an alternative

fuel or

raw material if that use could be accomplished under the facility's construction specifications as

amended

section ll'l

orior

(a)@)

to the

of the

chanae.

AS, shall

Conversion

not be considered

to coal reauired

a modification:'

for

enerav considerations.

,

as soecified

.

in

15) The addition or use of any system or device whose orimaw function is the reduction of air oollutants.

except when an emission control system is removed or'is repiaced by a system which the ~dministrato;

determines to be less environmentally beneficial.

(6) The relocation or change in ownership of an existing facility.

(f) Special provisions set forth under an applicable subpart of this part shall supersede any conflicting

provisions of this section.

(g) Within 180 days of the completion of any physical or operational change subject to the control

measures specified in paragraph (a) of this section, compliance with ail applicable standards must be

achieved.

1h) No ohvsical chanae. or chanae in the method of ooeration. at an existina electric utilitv steam

genera'ti& unit shall betreated as a modification for the

of this

s&tion provideh that such

chanae does not increase the maximum

hourlv emissions of anv oollutant reaulated under this section

above the maximum hourly emissions achievable at that unit

d;ring

the 5 years prior to the change

ibai

1i) Reoowerina

tkchnologv

-.

oroiects

demonstration

.

that are

projects

awarded

(or

fundina

similar

from

projects

the De~artment

funded by EPA)

of Enerav

are

-,

exempt

as oermanent

.

from the

clean

reauirements of this section orovided that such chanae does not increase the maximum houriv

emissions of any poilutant regulated under this

section above the maximum hourly emissionsachievabie

at that unit during the five years prior to the change.

(j)(l) Repowering projects that qualify for an extension under section 409(b) of the Clean Air Act are

exempt from the requirements of this section, provided that such change does not increase the actual

hourly emissions of any pollutant regulated under this section above the actual hourly emissions

achievable at that unit during the 5 years prior to the change.

(2) This exemption shall not apply to any new unit that:

(i)

Is designated as a replacement for an existing unit:

(ii) Qualifies under section

409(b) of the Clean Air Act for an extension of an emission limitation

compliance date under section 405 of the Clean Air Act; and

(iii) is located at a different site than the existing unit

(k)

The installation, operation, cessation, or removal of a temporary clean coal technology demonstration

project is exempt from the requirements of this section. A temporary clean coal control technology

demonstration project, for the purposes of this section is a clean coal technology demonstration project

that is operated for a period of

5 years or less, and which complies with the State implementation plan

for the State in which the project is located and other requirements necessary to attain and maintain the

national ambient air quality standards during the project and after it is terminated.

(I) The reactivation of a very

clean coal-fired electric utility steam generating unit is exempt from the

requirements of this section.

140 FR 58419, Dec. 16,1975, as amended at 43 FR 34347, Aug. 3,1978; 45 FR 5617, Jan. 23,1980;

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57 FR 32339, July 21,1992; 65 FR 61750, Oct. 17,2000]

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Title 40: Protection of Environment

PAR i 60-STAhUARUS OF PtRTORMANCC- 'OR

hk

PI

STAi IONAiiY SClLfZCCS

Suopan Y-Slaiidaro5 of Performance for Codl Prepara+,on "idr17s

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§

60.251 Definitions.

As used in this subpart, ail terms not defined herein have the meaning given them in the Act and in

subpart A of this part.

(a) Coal preparation plant means any facility (excluding underground mining operations) which prepares

coal by one or more of the following processes: breaking, crushing, screening, wet or dry cleaning, and

thermal drying.

(b) Bituminous coal means solid fossil fuel classified as bituminous coal by ASTM Designation D388-77,

90,

91,95, or 98a (incorporated by reference-see $60.17).

(c) Coal means all solid fossil fuels classified as anthracite, bituminous,

subbituminous, or iignite by

ASTM Designation

D388-77, 90,91,95, or 98a (incorporated by reference-see $60.17).

(d) Cyclonic flow means a spiraling movement of exhaust gases within a duct or stack

(e) Thermal dryer means any facility

in mhich the molsture content of b~tumlnous coai is reduced b]

iontact with a hca!ed gas stream whlch is exhausted to the atmosphere.

(f,

Prier~niaoc

coal-cleanmg eqlilpfiient means any facliity unfcn classifies bituminous coal by sc7c or

scparatcs uitumino~ls coal from refusc by applicat~un of alr stream(s).

(g)

Coal procesalry and conveying equlpnlent means an) mach~ncry used to reduce the s17o ot coal or

to

separate coal from refuse, and the cquipmcnt used to convey coal to or remole coal and refuse from

the machinery. This includes, but is not limited to, breakers, crushers, screens, and conveyor belts,

(h) Coal storage system means any facility used to store coal except for open storage piles.

(i) Transfer and loading system means any facility used to transfer and load

coai for shipment.

141 FR 2234, Jan. 15,1976, as amended at 48 FR 3738, Jan. 27,1983; 65 FR 61757, Oct. 17,20001

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Sectlon 508 /Accessibility

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19,

200i

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40

CFR

g

and (r) (6) (iii)

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Title 40: Protection of Environment

PART 52-APPROVAL AND PROMULGATION_OF IMPLEMENTATION PLANS

Subpait A-General Provisions

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5

52.21 Prevention of significant deterioration of air quality.

(a)(l) Plan disapproval. The provisions of this section are applicable to any State implementation plan

which has been disapproved with respect to prevention of significant deterioration of air quality in any

portion of any State where the existing air quality is better than the national ambient air quality

standards.

Soecific disaoorovals

, ,

are listed where aooiicabie.

, ,

in sub~arts B throuah DDD of this oart. The

provisions of'th~s soction have been incorporated by reference Into ihe appl caole mplernentatidn plans

for

varlous Staros, as nrovided .n sLbuarts B throuah DDD of this Dart Where this soction is so

incorporated, the

brovisions shall also be applicabik to all lands owned by the Federal Government and

Indian Reservations located in such State. No disaooroval with resoect to a State's failure to orevent

significant deterioration of air quality shall invalidateor otherwise affect the obligations of ~taies,

this

emission

part.

sources. or other oersons with resoect to all oortions of olans aooroved

. .

or oromuiaated

-

under

(2) Applicability procedures.

(i) The requirements of this section apply to the construction of any new

major stationary source (as defined in paragraph

(b)(l) of this section) or any project at an existing major

stationary source in an area designated as attainment or unclassifiable under sections

107(d)(l)(A)(ii) or

(iii) of the Act.

(ii) The requirements of paragraphs

(j)

through (r) of this section apply to the construction of any new

major stationary source or the major modification of any existing major stationary source, except as this

section

0the~iSe provides.

(1i0 No new nialor stationary source or major modification ro wh~cn the requrements of paragraphs 1)

tnroua?

-

trI(5r

. .. .

of this soct~on apply shall tleqin actual construction wfthobt a oerniil thar stares rrirrt the

major stationary source or m&ormodificati& will meet those requirements.'~he Administrator has

authority to issue any such permit.

(iv) The requirements of the program

will be applied in accordance with the principles set out in

paragraphs

(a)(Z)(iv)( a )through (

f)

of this section.

( a ) Except as otherwise provided in paragrapns (a)(2](v) and (\i) of this section, and consistent with the

def~n,t,on of major modif~cat~on

contained in paragraph (b)(2) of thls section, a project is a major

mod~ficat~on

for a regulated hSH poll~tant if 11 causes two types of emissions increases-a significant

emissions

iiicrease (as defined in paragraph (b)(40) of this section). and a siqn~ficant net emlsslons

,ncrc.ase (as deflred in 2aragraphs (b)(3) and (b~(23) cf th s sect~on) The project ;s not a major

m~fl~lica~on

11 11 does not cause a s~qn~ficanl

cm;ssions increase. If tne 3ro ect cases a siuif~cant

emissions increase, then the projeciis a major modification only if it alsb results in a signiKcant net

emissions increase.

( b )

Tbe

procedure for calculating (before beginning aclual construct~on) ahether

a

signiflcanr emlsslons

incredse (

I

c the first stell of the process) will occdr depends upon tne tvpe of omissions ~n1t5

beina

modified.'according to paragraphs (a)(Z)(iv)( c ) through(

f)

of this section. The procedure for

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( x ) Glass fiber processing plants;

( y ) Charcoal production plants;

(

z

) Fossil fuel-fired steam electric plants of more that 250 million British thermal units per hour heat

input, and

( aa )Any other stationary source category which, as of August 7, 1980, is being regulated under section

Ill or 112oftheAct.

(Q(2)(i) Major modification means any physical change in or change in the method of operation of a major

fi

stationary source that would result in: a significant emissions increase (as defined in paragraph (b)(40)

of this section) of a regulated NSR pollutant (as defined in paragraph (b)(50) of this section); and a

$$.& significant net emissions increase of that pollutant from the major stationary source.

(ii)

..

Anv

,

siqnificant

.

emissions increase (as defined at paragraph (b)(40) of this section) from any

cm.ssiuns un~ts or tier eni~sslons Increase (as oef~rieo in garagr3ph (~~131

of Ins sccilonj a! a rn;~;or

st;i!~oriar) source thal

is

s qnificant for rolatle orpallc compounds or luOxsnaif be cons,derea s,gnllcant

for ozone.

(iii) A physical change or change in the method of operation shall not include:

( a ) Routine maintenance, repair and replacement. Routine maintenance, repair and replacement shall

include. but not be limited to, any

activity(s) that meets the requirements of the equipment replacement

provisions contained in

paragraph (cc) of this section;

Note to

paragraph(b)(2)(iii)( a ): By court order on December 24,2003, the second sentence

of this paragraph

(b)(2)(iii)(a) is stayed indefinitely. The stayed provisions will become

effective immediately if the court terminates the stay. At that time, EPA will publish a

document in

theFederal Registeradvising the public of the termination of the stay.

I

\~,

b

) Use

~~~

of an alternative fuel or raw material bv reason of an order under sections 2 (a) and (b) of the

Energy Supply and Environmental coordination Act of 1974 (or any superseding legisiaiion) dr by

reason of a natural gas curtailment plant pursuant to the Federal Power Act;

( c ) Use of an alternative fuel by reason of an order or rule under section 125 of the Act;

(

d)

Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from

municipal solid waste;

( e ) Use of an alternative fuel or raw material by a stationary source which:

( I )The source was capable of accommodating before January 6.1975, unless such change would be

prohibited under any federally enforceable permit condition which was established after January 6, 1975

pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR subpart I or 40 CFR

51.166; or

(

2

)The source is approved to use under any permit issued under 40 CFR 52.21 or under regulations

approved pursuant to 40 CFR 51.166;

( f) An increase in the hours of operation or in the production rate, unless such change would be

prohibited under any federally enforceable permit condition which was established after January 6, 1975

pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR subpart I or 40 CFR

51.166.

( g ) Any change in ownership at a stationary source.

( h )The addition, replacement, or use of a PCP, as defined in paragraph (b)(32) of this section, at an

existing emissions unit meeting the requirements of paragraph

(z) of this section. A replacement control

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technology must provide more effective emission control than that of the replaced control technology to

qualify for this exclusion.

( i) The installation, operation, cessation, or removal of a temporary clean coal technology

demonstration project, provided that the project complies with:

( I )The State implementation plan for the State in which the project is located, and

(

2

) Other requirements necessary to attain and maintain the national ambient air quality standards

during the project and after it is terminated.

(1) The instailarion or operation of a permanent bean coal technology demonstration project tnat

constitutes repowerinq provided that the project does not result in an ncrease in rhe potentla1 to eni~t of

any regulated

polluta~t emitted by the unii. his exemption shali apply on a poilutant-by-pollutant basis.

( k ) The reactivation of a very clean coal-fired electric utility steam generating unit.

(I., Thfs dcflnlt~on shall not appl) with respect to a part~cular regulated NSR pullutant *her1 thc major

statsonary source is cump )iny with the requirements under paragraph (aa) of th~s sectton for a PAL for

trlar pollutant. Instead, the dofin~t~on

at paragraph (aa)(Z)(,~t ) of thls sectton snall apply.

(3)(i) Net emissions increase means, with respect to any regulated NSR pollutant emirred by a major

stationary source, the amount by which the sum of the following exceeds zero:

( a )The increase in emissions from a particular physical change or change in the method of operation

at a stationary source as calculated pursuant to paragraph

(a)(Z)(iv) of this section; and

( b ) Any other increases and decreases in actual emissions at the major stationary source that are

contemooraneous with the

~articuiar chanae and are othe~wise creditabie. Baseline actuai emissions fot

calculai~n~

Increases arlo dkcrcases uride; this parayraph (5)(3)(11( b ) shall be delerm~nru as provlded

In varaarauh lb1148)

. ,. .

of this section, except tnat paraqra~hs (b1(48)(.)( c anc lbj(481(i )(

d)

of this

se'ctio~shall not apply.

(ii) An increase or decrease in actual emissions is contemporaneous with the increase from the

particular change only if it occurs between:

( a )The date five years before construction on the particular change commences: and

( b ) The date that the increase from the particuiar change occurs.

(iii) An increase or decrease in actual emissions is creditabie only

if:

( a )The Administrator or other reviewing authority has not relied on it in issuing a permit for the source

under this section, which permit is in effect when the increase in actuai emissions from the particular

change occurs; and

( b ) The increase or decrease in emissions did not occur at a Clean Unit except as provided in

paragraphs

(x)(8) and (y)(lO) of this section.

(iv) An increase or decrease in actual emissions of sulfur dioxide, particulate matter, or nitrogen oxides

that occurs before the aoolicable minor source baseline date is creditable onlv if it is reauired to be

considered in

calculatingthe amount of maximum allowable increases remaining available

(v) An increase in actual emissions is creditabie only to the extent that the new ievel of actual emissions

exceeds the old

level.

(vi) A decrease in actuai emissions is creditable only to the extent that:

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allowable ncreases ober the basel~ne concentrdt~on and to assure that such emlsslons would not cause

or contribute to concentrations which exceed

the otnetwise applicable maxlmum allowable Increases lor

periods of exposure of 24 hours or less for more than 18

days[ not necessarily consecutive, during any

annual period:

Maximum Allowable Increase

[Micrograms per cubic meter]

(q) Public participation. The Administrator shall follow the applicable procedures of 40 CFR part 124 in

orocessina

aoolications under this section. The Administrator shall follow the orocedures at 40 CFR

Period of exposure

24-hr maximum

3-hr maximum

" ,.

52 21(r) as in effect on June 19,1979, to the extent that the procedures of ~O'CFR part 124 do not

apply

(r) Source obligation. (1) Any owner or operator who constructs or operates a source or modification not

Terrain areas

In dccordance \\Jn the applcation submlneo pLrsuant lo lhls sectcon or nlrh the terms of an) apvro~al tc

construct or

any onner or operator of a sourcc or modif~cation sLbject to this section who commences

Low

36

130

construct~on after the cffect~ve aate of these reyu at~ons w~thout apply ng for and receliing npproval

hercdllder, shall be subjec! to appropriate enforcement action

High

62

22 1

(2) Approval to construct shall become invalid if construction is not commenced within 18 months after

receipt of such approval, if construction is discontinued for a period of 18 months or more, or if

construction is not comoleted within

a reasonable time. The Administrator mav extend the 18-month

period upon a satisfactory showing that an extension is justified. This

provisio;l does not apply to the

time

oeriod between construction of the aooroved DhaSeS of a ohased construction

..

oroiect:

.

each ohase

mus~commence construction within 18 months of ihe projected and approved commencement date.

(3) Approval to construct shall not relieve any owner or operator of the responsibility to comply fully with

applicable provisions of the State implementation plan and any other requirements under local. State, or

Federal law

(4) At such time that a particular source or modification becomes a major stationary source or major

modification

soielv bv virtue of a relaxation in anv enforceable limitation which was established after

August 7, 1980,

in the capacity of the source ormodification otherwise to emit a pollutant, such as a

restriction on hours of operation, then the requirements or paragraphs

(j)

through (s) of this section shall

apply to the source or modification as though construction had not yet commenced on the source or

modification.

(5) [Reserved]

(6)

The orovisions of this oaragraph

.

-

(rI(6) aoolv to pmiects at an existing emissions unit at a maio~

stet,ona& sodce (otller tnan projects ar a clean unit or at a some tha PAL, in c~rcLmsrancts ~herc

Inere is a reasunable poss~bil~ti

that a projoct that is no: a pan of a malor rnod~f8cat#on

may resul! In a

signil~cani em sslons increase and the owner or operator elects to use the method specihed ~n

paragrdpqs (bj(41 )(II)( a )through ( c) of this sectlon for ralculat~ng projected actual em ssjons

(i) Before beginning actual construction of the project, the owner or operator shall document and

maintain a record of the following information:

( a )A description of the project;

( b ) Identification of the emissions unit(s) whose emissions of a regulated NSR pollutant could be

affected by the project; and

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( c ) A description of the applicability test used to determine that the project is not a major modification

for any regulated NSR pollutant, including the baseline actual emissions, the projected actual emissions,

the amount of emissions excluded under paragraph

(b)(4l)(ii)( c )of this section and an explanation for

why such amount was excluded, and any netting calculations, if applicable.

(ii) If the emissions unit is an existina electric utilitv steam aeneratina

.,

unit.

.

before beainnino actual

&nstruction. the owner or operator shall provtde

a

copy oitlle informatton set out inpara6apn (r~(6)(i)

of thts sectlon to the Adm~nlstrator. Notnino in this oaraaraoh

.

- .

frlf61fii)

. . . . . .

shall be construed to rcaulre the

owner or operator of such a unit to obtain iny determination from the Administrator before beginning

actual construction.

(iii) The owner or operator shall monitor the emissions of any regulated NSR pollutant that could

increase as a result of the

Droiect and that is emitted bv anv emissions unit identified in DaraQraOh

.

- .

(r)(6)

, . , .

(i)( b )of this section; and kaidulate and maintain a recbrd of the annual emissions, in tons per year on a

calendar vear basis. for a oeriod of

5 vears followino resumotion of reaular ooerations after the chanoe.

".

or for a p&od of 10'years'follow~ng resumption of regular oberattons after the change tf the project

Increases the design capacity of or putential to

emlt that regulated NSR pollutant at such emlssfons nit

(IV) If the un~t s an ex,stlng electric utility steam generatlng Lnlt the owner or operator shal submit a

rcvorl to tne Administrator w,!hin 60 da\s after the end of each vear durina nhlcn recurds must be

generated under paragraph (r)(6)(iii) ofthis section setting out the unit's annual emissions during the

calendar year that preceded submission of the report.

(v) If the unit is an existing unit other than an electric utility steam generating unit, the owner or operator

shall submit a report to the Administrator if the annual emissions, in tons per year, from the project

identified in paragraph

(r)(6)(i) of this section, exceed the baseline actual emissions (as documented and

maintained pursuant to paragraph

(r)(6)(i)( c) of this section), by a significant amount (as defined in

paragraph

(b)(23) of this section) for that regulated NSR pollutant, and If such emissions differ from the

preconstruction projection as documented and maintained pursuant to paragraph

(r)(6)(i)( c ) of this

section. Such report shall be submitted to the Administrator within 60 days after the end of such year.

The report shall contain the following:

( a ) The name, address and telephone number of the major stationary source;

( b ) The annual emissions as calculated pursuant to paragraph (r)(6)(iii) of this section: and

( c j Any other ~nfurmat.on that the omner or operator ~ishes tu lnciude 1n the report (e.y an explanation

as to

nhy the em~ssions differ from tnc preconstruction prujection).

171

,,

The

~-

owner

-~

or onerator

~.~-

-

of the source shall make the information reouired to be documented

~ ~

and

mainralned p~rsuant tu paragraph (r)(G) of thts sectlon available for revie# upon a request for Inspection

by

the Admlnlstrator or !he general p~blic pursLant to the requirements uunta~ned :n 570 4(b)(3)(1111~

of

this chapter

(s) Environmental impact statements. Whenever any proposed source or modification is subject to action

by a Federal Agency which might necessitate preparation of an environmental impact statement

pursuant to the National Environmental Policy Act (42

U.S.C. 4321), review by the Administrator

conducted pursuant to this section shall be coordinated with the broad environmental reviews under that

Act and under section 309 of the Clean Air Act to the maximum extent feasible and reasonable.

(t)

Disputedpennits orredesignations. If any State affected by the redesignation of an area by an lndian

Governina

-

Bodv.

,,

or anv lndian Governina Bodv of a tribe affected bv the redesianation of an area bv a

State, disagrees with &ch redesignatioKor if

a

permit is proposed io be issueifor any major statidnary

source or major modification proposed for construction in any State which the Governor of an affected

State or lndian Governing Body of an affected tribe determines will cause or contribute to a cumulative

cnanye in

atr quallt, in excessof that alI0~ed in tliis part w.thin the affected State or lndian Resewatton

the Governor or lnd~an Guvern~ng Body may request the Adm~nlstrator to enter into neqottatlons witn the

parties involved to resolve such dispute. If requested by any State or lndian

~overning~od~

involved,

the Administrator shall make a recommendation to resolve the dispute and protect the air quality related

values of the lands involved. If the parties involved do not reach agreement, the Administrator shall

resolve the dispute and his determination, or the results of agreements reached through other means,

shall become part of the applicable State implementation plan and shall be enforceable as part of such

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Exhibit

40

CFR 60.Subpart

Y

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Determination Detail

Control Number: 0300127

Category: NSPS

EPA Office: Region

5

Date:

06l3012003

Title:

Applicability to Replacement of Individual Conveyors

Recipient: Frank Prager

Author:

George Czerniak

Comments:

Subparts: Part 60,

Y

Coal Preparation Plants

References: 60.14

60.15

60.2

60.250(a)

60.251 (g)

Abstract:

Q1: Does the replacement of an individual coal conveyor constitute construction or

reconstruction of an affected facility or must one view the conveyors collectively as a

group when determining if the replacement or construction of an individual conveyor

constitutes the construction or reconstruction of an affected facility?

Al: Each conveyor must be evaluated individually

to determine if the replacement of a

single conveyor creates an affected facility subject to Part 60, Subpart

Y. Based on the

wording of the regulation, each conveyor is viewed individually. This determination

confirms an earlier determination on this issue, and was also based on previous

determinations concerning the applicability of Subpart

Y.

Q2: When evaluating applicability of Subpart Y to coal processing and conveying

equipment at a coal preparation plant, does one include all coal preparation equipment

as a whole (system) or does one view each piece of processing and conveying

equipment as a separate affected facility?

A2: The NSPS General Provisions in Subpart A define affected facility as any apparatus

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to which a standard is applicable. In general, when U.S. EPA seeks to regulate a

process as a whole the regulation will refer to a system or facility or will use the term "all"

when describing the equipment that is part of the affected facility. Because Subpart

Y

defines coal processing an conveying equipment to be any machinery and because U.S.

EPA did not identify coal processing and conveying equipment as a system, the affected

facility is each individual coal conveyor.

Letter:

Frank P. Prager, Assistant General Counsel

Xcel Energy

1225 17th Street, Suite 900

Denver. Colorado 80202-5533

Re: NSPS Subpart

Y Applicability to Xcel Energy, Alan King Facility

Dear Mr. Prager:

This letter is in response to your letter of February 4, 2002, in which you requested that

the United States Environmental Protection Agency

(US. EPA) reconsider a formal New

Source Performance Standards (NSPS)

- Subpart Y applicability determination it issued

to the Minnesota Pollution Control Agency in a letter dated December 27, 2001. The

determination concerned the potential applicability of NSPS

- Subpart Y to the Flite Coal

Conveyor replacement project at the Xcel Energy (Xcel), Allen S. King Generating Plant,

in

Bayport, Minnesota. Please note that this response only addresses the issue of NSPS

Subpart

Y applicability and does not address the applicability of other regulations

including New Source Review, the federally approved State Implementation Plan, and

other NSPS standards or requirements.

In your letter dated February 4,2002,

you make several assertions to support your

position that the affected facility designated under NSPS Subpart

Y as "coal processing

and conveying equipment (including breakers and crushers)" must include all "coal

preparation plant equipment as a whole." For example, you assert that at "no point do

the regulations state

. . . that each piece of processing and conveying equipment should

be viewed as separate

. . .[affected facilities]."

The NSPS General Provisions set forth at 40 C.F.R. Subpart A, 60.2, define "affected

facility" as "any apparatus to which a standard is applicable." (Emphasis added.) The

designation of affected facilities under NSPS Subpart

Y at 40 C.F.R. 60,250 includes

"coal processing and conveying equipment." NSPS Subpart

Y at 40 C.F.R. 60.251(g)

defines "coal processing and conveying equipment" as "any machinery used to reduce

the size of coal or to separate coal from refuse, and the equipment used to convey

coal to or remove

coal and refuse from machinery. This includes, but is not limited to,

breakers, crushers, screens, and conveyor belts." (Emphasis added.)

In general, where EPA seeks to regulate a process as a whole, or seeks to define a

process or certain objects as a whole, the NSPS regulations will refer to the objects in

the collective, such as describing the objects or process as a "system" or a "facility," or

will use the term "all" in describing those objects. For example, the NSPS Subpart

Y

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EPA-Clean Air Act Applicability Determination Index

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regulations designate "coal storage systems" and also "coal transfer and loading

systems" as affected facilities, and defines them, respectively, as "any facility used to

store coal" and as "any facility used to transfer and load coal for shipment." (Emphasis

added.) Thus, under these designations, all coal storage equipment is treated collectively

as one affected facility, and, correspondingly, all coal transfer and loading equipment

used for shipping is treated collectively as one affected facility.

In contrast. NSPS Subpart

Y identifies "coal processing and conveying equipment" as

the affected facility. (Emphasis added.) Significantly, NSPS Subpart

Y does not

designate this affected facility as a "coal processing and conveying system."

Correspondingly, NSPS Subpart

Y, in defining this affected facility, refers to "any

machinery" (emphasis added). NSPS Subpart

Y does not define this affected facility as

"any facility used to process or convey coal." Thus, it is clear from the plain language

and context of NSPS Subpart

Y that EPA did not intend to regulate all "coal processing

and conveying equipment" as one collective affected facility.

Xcel also believes that U.S. EPA's position, as expressed in the December 27,2001

letter to MPCA, is not logical because it would result in a situation where the NSPS is

applicable to certain individual conveyors that had been replaced while the other

equipment would remain exempt. Indeed, U.S. EPA's position is that there are a number

of affected facilities at a coal preparation plant and it is possible for some of them to be

subject to the Subpart

Y NSPS while other facilities at the same plant are not subject to

the Subpart

Y NSPS. For example, one thermal dryer at a coal preparation plant could

be subject to the NSPS while an adjacent older thermal dryer might not be subject to the

NSPS. The logic of U.S. EPA's position arises from a basic premise of NSPS, which is,

that new or modified sources of air pollution have the greatest flexibility to incorporate

emission reduction technology. It should be noted that under certain NSPS standards

certain companies have addressed the juxtaposition of existing and affected sources by

simply using the emission

controls required to meet the NSPS standard at both their affected and existing facilities.

Your letter also discusses

U.S. EPA Region 5's position on the April 16, 1998, letter from

EPA Region

IV regarding a Carolina Power and Light plant. As we indicated in our

December 27,2001 letter, we acknowledge that this applicability determination could

have been written with greater clarity. For example, the determination refers to a "coal

conveying system" as being defined in the regulation -when, in fact, NSPS Subpart

Y

neither refers to nor defines such a term. However, U.S. EPA Region

5

does agree with

Region

IV's determination in relation to its finding that certain coal conveyors are subject

to the requirements of NSPS Subpart

Y, while other coal conveyors may, or may not, be

subject to the requirements of NSPS Subpart

Y. In reference to certain other coal

conveyors that the company asserted were not subject to NSPS Subpart

Y, Region IV's

determination states that "if coal conveyors 6, 12A. 12B, 13A, and 138 were constructed

after October 24, 1974, they are also affected facilities subject to Subpart

Y." (Emphasis

added.) In other words, although the determination refers to an undefined "coal

conveying system," in fact, the Region

IV determination does not treat the conveyors as

one collective affected facility. This position is also reflected in the abstract for the

Region

IV applicability determination, which states: "What portion of the coal conveying

system is Subject to Subpart

Y at a coal preparation plant?" This question can only be

asked if individual conveyors can be subject to the Subpart

Y NSPS.

Finally, if the Region IV determination were to reflect the position you attribute to it, that

is, that all "coal processing and conveying equipment" must be treated as one affected

facility, then Region

IV would have analyzed the determination in a different manner. For

example, rather than looking at the installation dates of individual conveyors, the

determination would have discussed the construction costs and installation dates of all

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conveyors and processing equipment under a reconstruction or capital expenditure

analysis.

U.S.

EPA's letter of December 27, 2001, did not make a final determination regarding the

applicability of the Subpart

Y NSPS to the Xcel Energy, Alan King facility. U.S. EPA

continues to believe that the appropriate way to determine applicability in this situation is

to look at each conveyor that was replaced and determine if each conveyor was new,

modified or reconstructed. The information provided by Xcel appears to indicate that

each conveyor was entirely reconstructed. As a result, it appears that each individual

conveyor is subject to NSPS Subpart

Y.

If there are any questions concerning this letter, please contact Jeffrey Bratko of my staff

at (312) 886-6816 or via e-mail to

Bratko.Jeffrey@EPA.mail

Sincerely yours,

George T. Czerniak, Chief

Air Enforcement and Compliance Assurance Branch

cc:

Betsy Randt, MPCA

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on

Friday, November 10th. 2006

URL: http://cfpub.epa.gov/adiiindex.cfm?

CFID=7018376&CFTOKEN=73259929&~sessionid=6630e~imeout=180

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *

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CERTIFICATE OF SERVICE

I, the undersigned, certify that on this 9th day of April, 2007. I have served electronically

the attached

APPEAL OF CONSTRUCTION PERMIT

and

APPEARANCES OF

SHELDON A. ZABEL, KATHLEEN C. BASSI, STEPHEN

J. BONEBRAKE, and

ANDREW N. SAWULA,

upon the following persons,

Dorothy Gunn, Clerk

Illinois Pollution Control Board

James

R. Thompson Center

Suite 11-500

100 West Randolph

Chicago, Illinois 60601

and by first class mail, postage affixed, upon:

Illinois Environmental Protection Agency

Division of Legal Counsel

102

1 North Grand Avenue, East

P.O. Box 19276

Springfield, Illinois

62794-9276

Sheldon A. Zabel

Kathleen C. Bassi

Stephen J. Bonebrake

Andrew

N. Sawula

SCNIFF I-IARDIN, LLP

6600 Sears Tower

233 South Wacker Drive

Chicago, Illinois 60606

3 12-258-5500

Electronic Filing, Received, Clerk's Office, April 9, 2007

* * * * * PCB 2007-101 * * * * *