MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY 

AIR QUALITY DIVISION 

February 18, 2015 

PERMIT TO INSTALL 

40-15 

ISSUED TO 

Consumers Energy 

LOCATED AT 

2742, 2680 and 2555 North Weadock Highway 

Essexville, Michigan 

IN THE COUNTY OF 

Bay 

STATE REGISTRATION NUMBER 

B2840 

The Air Quality Division has approved this Permit to Install, pursuant to the delegation of authority 

from the Michigan Department of Environmental Quality. This permit is hereby issued in 

accordance with and subject to Section 5505(1) of Article II, Chapter I, Part 55, Air Pollution 

Control, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended. 

Pursuant to Air Pollution Control Rule 336.1201(1), this permit constitutes the permittee’s 

authority to install the identified emission unit(s) in accordance with all administrative rules of the 

Department and the attached conditions. Operation of the emission unit(s) identified in this Permit 

to Install is allowed pursuant to Rule 336.1201(6).

 DATE OF RECEIPT OF ALL INFORMATION REQUIRED BY RULE 203: 

February 18, 2015 

 DATE PERMIT TO INSTALL APPROVED: 

April 30, 2015 

SIGNATURE: 

 DATE PERMIT VOIDED: SIGNATURE: 

 DATE PERMIT REVOKED: SIGNATURE: 

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 1 of 32 

PERMIT TO INSTALL 

Table of Contents 

Section Page 

Alphabetical Listing of Common Abbreviations / Acronyms ................................................................................... 2

General Conditions ................................................................................................................................................. 3

Special Conditions .................................................................................................................................................. 5

Emission Unit Summary Table ................................................................................................................................ 5

Special Conditions for EU-KARN1 .......................................................................................................................... 6

Special Conditions for EU-KARN2 ........................................................................................................................ 11

Appendices ........................................................................................................................................................... 16
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 2 of 32 

Common Abbreviations / Acronyms 

Common Acronyms Pollutant / Measurement Abbreviations 

AQD Air Quality Division BTU British Thermal Unit 

BACT Best Available Control Technology °C Degrees Celsius 

CAA Clean Air Act CO Carbon Monoxide 

CEM Continuous Emission Monitoring dscf Dry standard cubic foot 

CFR Code of Federal Regulations dscm Dry standard cubic meter 

CO2e Carbon Dioxide Equivalent °F Degrees Fahrenheit 

COM Continuous Opacity Monitoring gr Grains 

EPA Environmental Protection Agency Hg Mercury 

EU Emission Unit hr Hour 

FG Flexible Group H2S Hydrogen Sulfide 

GACS Gallon of Applied Coating Solids hp Horsepower 

GC General Condition lb Pound 

GHGs Greenhouse Gases kW Kilowatt 

HAP Hazardous Air Pollutant m Meter 

HVLP High Volume Low Pressure * mg Milligram 

ID Identification mm Millimeter 

LAER Lowest Achievable Emission Rate MM Million 

MACT Maximum Achievable Control Technology MW Megawatts 

MAERS Michigan Air Emissions Reporting System ng Nanogram 

MAP Malfunction Abatement Plan NOx Oxides of Nitrogen 

MDEQ Michigan Department of Environmental 

Quality (Department) PM Particulate Matter 

MSDS Material Safety Data Sheet PM10 PM with aerodynamic diameter ≤10 microns 

NESHAP National Emission Standard for 

Hazardous Air Pollutants PM2.5 PM with aerodynamic diameter ≤ 2.5 microns 

NSPS New Source Performance Standards pph Pounds per hour 

NSR New Source Review ppm Parts per million 

PS Performance Specification ppmv Parts per million by volume 

PSD Prevention of Significant Deterioration ppmw Parts per million by weight 

PTE Permanent Total Enclosure psia Pounds per square inch absolute 

PTI Permit to Install psig Pounds per square inch gauge 

RACT Reasonably Available Control 

Technology scf Standard cubic feet 

ROP Renewable Operating Permit sec Seconds 

SC Special Condition SO2 Sulfur Dioxide 

SCR Selective Catalytic Reduction THC Total Hydrocarbons 

SRN State Registration Number tpy Tons per year 

TAC Toxic Air Contaminant μg Microgram 

TEQ Toxicity Equivalence Quotient VOC Volatile Organic Compound 

VE Visible Emissions yr Year 

* For High Volume Low Pressure (HVLP) applicators, the pressure measured at the HVLP gun air cap shall not 

exceed ten (10) pounds per square inch gauge (psig). 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 3 of 32 

GENERAL CONDITIONS 

1. The process or process equipment covered by this permit shall not be reconstructed, relocated, or 

modified, unless a Permit to Install authorizing such action is issued by the Department, except to the 

extent such action is exempt from the Permit to Install requirements by any applicable rule. 

(R 336.1201(1)) 

2. If the installation, construction, reconstruction, relocation, or modification of the equipment for which this 

permit has been approved has not commenced within 18 months, or has been interrupted for 18 months, 

this permit shall become void unless otherwise authorized by the Department. Furthermore, the permittee 

or the designated authorized agent shall notify the Department via the Supervisor, Permit Section, Air

Quality Division, Michigan Department of Environmental Quality, P.O. Box 30260, Lansing, Michigan 

48909-7760, if it is decided not to pursue the installation, construction, reconstruction, relocation, or 

modification of the equipment allowed by this Permit to Install. (R 336.1201(4)) 

3. If this Permit to Install is issued for a process or process equipment located at a stationary source that is 

not subject to the Renewable Operating Permit program requirements pursuant to R 336.1210, operation 

of the process or process equipment is allowed by this permit if the equipment performs in accordance 

with the terms and conditions of this Permit to Install. (R 336.1201(6)(b)) 

4. The Department may, after notice and opportunity for a hearing, revoke this Permit to Install if evidence 

indicates the process or process equipment is not performing in accordance with the terms and conditions 

of this permit or is violating the Department’s rules or the Clean Air Act. (R 336.1201(8), Section 5510 of 

Act 451, PA 1994) 

5. The terms and conditions of this Permit to Install shall apply to any person or legal entity that now or 

hereafter owns or operates the process or process equipment at the location authorized by this Permit to 

Install. If the new owner or operator submits a written request to the Department pursuant to R 336.1219 

and the Department approves the request, this permit will be amended to reflect the change of ownership 

or operational control. The request must include all of the information required by subrules (1)(a), (b), and 

(c) of R 336.1219 and shall be sent to the District Supervisor, Air Quality Division, Michigan Department of 

Environmental Quality. (R 336.1219) 

6. Operation of this equipment shall not result in the emission of an air contaminant which causes injurious 

effects to human health or safety, animal life, plant life of significant economic value, or property, or which 

causes unreasonable interference with the comfortable enjoyment of life and property. (R 336.1901) 

7. The permittee shall provide notice of an abnormal condition, start-up, shutdown, or malfunction that 

results in emissions of a hazardous or toxic air pollutant which continue for more than one hour in excess 

of any applicable standard or limitation, or emissions of any air contaminant continuing for more than two 

hours in excess of an applicable standard or limitation, as required in Rule 912, to the Department. The 

notice shall be provided not later than two business days after start-up, shutdown, or discovery of the 

abnormal condition or malfunction. Written reports, if required, must be filed with the Department within 

10 days after the start-up or shutdown occurred, within 10 days after the abnormal conditions or 

malfunction has been corrected, or within 30 days of discovery of the abnormal condition or malfunction, 

whichever is first. The written reports shall include all of the information required in Rule 912(5). 

(R 336.1912) 

8. Approval of this permit does not exempt the permittee from complying with any future applicable 

requirements which may be promulgated under Part 55 of 1994 PA 451, as amended or the Federal 

Clean Air Act. 

9. Approval of this permit does not obviate the necessity of obtaining such permits or approvals from other 

units of government as required by law. 

10. Operation of this equipment may be subject to other requirements of Part 55 of 1994 PA 451, as amended 

and the rules promulgated thereunder. 

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 4 of 32 

11. Except as provided in subrules (2) and (3) or unless the special conditions of the Permit to Install include 

an alternate opacity limit established pursuant to subrule (4) of R 336.1301, the permittee shall not cause 

or permit to be discharged into the outer air from a process or process equipment a visible emission of 

density greater than the most stringent of the following. The grading of visible emissions shall be 

determined in accordance with R 336.1303. (R 336.1301) 

a) A six-minute average of 20 percent opacity, except for one six-minute average per hour of not more 

than 27 percent opacity. 

b) A visible emission limit specified by an applicable federal new source performance standard. 

c) A visible emission limit specified as a condition of this Permit to Install. 

12. Collected air contaminants shall be removed as necessary to maintain the equipment at the required

operating efficiency. The collection and disposal of air contaminants shall be performed in a manner so 

as to minimize the introduction of contaminants to the outer air. Transport of collected air contaminants in 

Priority I and II areas requires the use of material handling methods specified in R 336.1370(2). 

(R 336.1370) 

13. The Department may require the permittee to conduct acceptable performance tests, at the permittee’s 

expense, in accordance with R 336.2001 and R 336.2003, under any of the conditions listed in 

R 336.2001. (R 336.2001) 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 5 of 32 

SPECIAL CONDITIONS 

EMISSION UNIT SUMMARY TABLE 

The descriptions provided below are for informational purposes and do not constitute enforceable conditions. 

Emission Unit ID Emission Unit Description

(Process Equipment & Control Devices) 

Installation Date / 

Modification Date

Flexible Group 

ID 

EU-KARN1 Karn Boiler #1 is a 2500 million BTU per hour dry 

bottom tangential coal fired boiler with fuel oil 

startup capabilities and supplemental co-firing for 

flame stabilization and mill outages. Particulate 

emissions are controlled by a low pressure high 

volume (LPHV) pulse jet fabric filter (PJFF). 

To comply with the Cross State Air Pollution 

Rule (CSAPR), Selective Catalytic Reduction 

(SCR), and/or the accumulation of adequate 

NOx allowances will be utilized. 

A Selective Catalytic Reduction (SCR) unit, a 

spray dry absorber (SDA), and sorbent injection 

are installed for NOx, SO2, other acid gas, and 

mercury control. 

July 1, 1956, 

1973 - 1993 

FG-KARN12 

EU-KARN2 Karn Boiler #2 is a 2540 million BTU per hour dry 

bottom wall coal fired boiler with fuel oil startup

capabilities and supplemental co-firing for flame 

stabilization and mill outages. Particulate 

emissions are controlled by a low pressure high 

volume (LPHV) pulse jet fabric filter (PJFF). 

Additionally, Low NOx burners are installed. 

To comply with the Cross State Air Pollution 

Rule (CSAPR), Selective Catalytic Reduction 

(SCR), and/or the accumulation of adequate 

NOx allowances will be utilized. 

A Selective Catalytic Reduction (SCR) unit, a 

spray dry absorber (SDA), and sorbent injection 

are scheduled to be installed for NOx, SO2, other 

acid gas, and mercury control. 

July 1, 1956, 

1973 - 1998 

FG-KARN12 

Changes to the equipment described in this table are subject to the requirements of R 336.1201, except as 

allowed by R 336.1278 to R 336.1290. 

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 6 of 32 

The following conditions apply to: 

EU-KARN1 

DESCRIPTION: Karn Boiler #1 is a 2500 million BTU per hour dry bottom tangential coal fired boiler with fuel 

oil startup capabilities and supplemental co-firing for flame stabilization and mill outages. Particulate emissions 

are controlled by a low pressure high volume (LPHV) pulse jet fabric filter (PJFF). To comply with the Cross 

State Air Pollution Rule (CSAPR) NOx Budget Trading Program/CAIR Program, Selective Catalytic Reduction 

(SCR), and/or the accumulation of adequate NOx allowances will be utilized. A Selective Catalytic Reduction 

(SCR) unit, a spray dry absorber (SDA), and sorbent injection are installed for NOx, SO2, other acid gas, and 

mercury control. 

Flexible Group ID: FG-KARN12 

POLLUTION CONTROL EQUIPMENT: PJFF, SCR, SDA, and sorbent injection are installed. 

I. EMISSION LIMITS 

Pollutant Limit 

Time Period /

Operating 

Scenario 

Equipment

Testing / 

Monitoring 

Method 

Underlying Applicable 

Requirements 

1. SO2 1.67 lbs/mmBtu 

heat input**2

Monthly calendar average EU-KARN1 SC VI.3 R 336.1401(1) 

2. SO2 0.090 pounds per 

MMBtu heat 

input3

Based on a 30-day Rolling 

Average Emission Rate. 

This limit applies beginning 

60 Operating Days after 

December 31, 2014. 3,4

EU-KARN1 SC VI.4 “U.S. V CONSUMERS 

ENERGY COMPANY, 

CIVIL ACTION 14-13580, 

E.D. MICH., 2014” 

paragraph 117, 

Act 451 324.5503(b) 

3. SO2 0.075 pounds per 

MMBtu heat 

input3

Based on a 365-day Rolling 

Average Emission Rate. 

This limit applies beginning 

365 Operating Days after 

December 31, 2014. 3,4

EU-KARN1 SC VI.4 “U.S. V CONSUMERS 

ENERGY COMPANY, 

CIVIL ACTION 14-13580, 

E.D. MICH., 2014” 

paragraph 117, 

Act 451 324.5503(b) 

4. PM 0.16 lb/1000 lb of 

exhaust gas 

corrected to 50% 

excess air2

Test Protocol* EU-KARN1 SC V.1 R 336.1331(1)(c) 

5. PM 0.015 pound per 

MMBtu heat 

input3

At all times, as verifiable 

through required stack 

testing. This limit applies 

30 Operating Days after 

November 4, 2014 (i.e. 

December 8th, 2014)3,4

EU-KARN1 SC V.4, 

SC V.5 

(See 

Appendix 

C-1) 

“U.S. V CONSUMERS 

ENERGY COMPANY, 

CIVIL ACTION 14-13580, 

E.D. MICH., 2014” 

paragraph 147, 

Act 451 324.5503(b) 

6. NOx 0.080 pound per 

MMBtu heat 

input3

Based on a 30-day Rolling 

Average Emission Rate. 

This limit applies beginning 

60 Operating Days after 

November 4, 2014 (i.e. 

January 10th, 2015)3,4

EU-KARN1 SC VI.4 “U.S. V CONSUMERS 

ENERGY COMPANY, 

CIVIL ACTION 14-13580, 

E.D. MICH., 2014” 

paragraph 85, 

Act 451 324.5503(b) 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 7 of 32 

Pollutant Limit 

Time Period /

Operating 

Scenario 

Equipment

Testing / 

Monitoring 

Method 

Underlying Applicable 

Requirements 

7. Opacity 20%3,4 Per 6-minute period except 

for one 6-minute period per 

hour of not more than 27%

EU-KARN1 SC VI.2 “U.S. V CONSUMERS 

ENERGY COMPANY, 

CIVIL ACTION 14-13580, 

E.D. MICH., 2014” 

paragraph 151 

* Test protocol shall specify averaging time 

** 1.0 percent sulfur by weight in coal at 12,000 BTU per pound is equivalent to 1.67 pounds per million BTU 

heat input. Compliance with this emission limitation shall be based upon the monthly average of continuous 

emission monitoring data. (R 336.1401(1))

See Appendix C-1 

II. MATERIAL LIMITS 

Material Limit 

Time Period /

Operating 

Scenario 

Equipment 

Testing / 

Monitoring 

Method 

Underlying 

Applicable 

Requirements 

NA NA NA NA NA NA 

III. PROCESS/OPERATIONAL RESTRICTIONS 

1. The permittee shall not operate EU-KARN1 unless a Malfunction Abatement Plan (MAP) as described in 

Rule 911(2), for the emission control equipment is implemented and maintained. The MAP shall, at a 

minimum, specify the following: 

a. A complete preventative maintenance program including identification of the supervisory personnel 

responsible for overseeing the inspection, maintenance, and repair of air-cleaning devices, a description 

of the items or conditions that shall be inspected, the frequency of the inspections or repairs, and an 

identification of the major replacement parts that shall be maintained in inventory for quick replacement. 

b. An identification of the source and air-cleaning device operating variables that shall be monitored to 

detect a malfunction or failure, the normal operating range of these variables, and a description of the 

method of monitoring or surveillance procedures. 

c. A description of the corrective procedures or operational changes that shall be taken in the event of a 

malfunction or failure to achieve compliance with the applicable emission limits. 

If at any time the MAP fails to address or inadequately addresses an event that meets the characteristics of a 

malfunction, the permittee shall amend the MAP within 45 days after such an event occurs. The permittee 

shall also amend the MAP within 90 days, if new equipment is installed or upon request from the District 

Supervisor. The permittee shall submit the MAP and any amendments to the MAP to the AQD District 

Supervisor for review and approval. If the AQD does not notify the permittee within 90 days of submittal, the 

MAP or amended MAP shall be considered approved. Until an amended plan is approved, the permittee 

shall implement corrective procedures or operational changes to achieve compliance with all applicable

emission limits.2

 (R 336.1910, R 336.1911) 

2. Commencing 60 Operating Days after November 4, 2014 (i.e. January 10, 2015) and continuing thereafter, 

Consumers shall Continuously Operate the PJFF and use good air pollution control practices to maximize the 

PM emission reductions at all times when the Unit is in operation. The requirements of Appendix G-1 shall 

be met.3, 4 (“U.S. V CONSUMERS ENERGY COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” – 

paragraph 141, Act 451 324.5503(b)) 

See Appendix G-1 

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 8 of 32 

IV. DESIGN/EQUIPMENT PARAMETERS 

1. The permittee shall not operate EU-KARN1 unless the SCR, the fabric filter baghouse (PJFF), the SDA, and 

sorbent injection (for mercury control) are installed, maintained, and operated in a satisfactory manner. 

Satisfactory manner includes operating and maintaining each control device in accordance with an approved 

MAP for EU-KARN1 as required in SC III.1. (R 336.1901, R 336.1910)

2. The permittee shall not operate EU-KARN1 unless the SCR, SDA and fabric filter are Continuously 

Operated.3,4 (“U.S. V CONSUMERS ENERGY COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” – 

paragraphs 84, 117 and 147, Act 451 324.5503(b))

V. TESTING/SAMPLING 

Records shall be maintained on file for a period of five years. (R 336.1201(3)) 

1. Once every three years, or more frequently upon request of the AQD, permittee shall verify the PM emission 

rate from EU-KARN1 by testing, utilizing US EPA Reference Method 17 (Determination of Particulate 

Emissions from Stationary Sources (In-stack Filtration Method)) or other AQD approved test method, at 

permittee’s expense, and in accordance with Department requirements. Verification of emission rates includes 

the submittal of a complete report of the test results within 60 days of test completion. (R 336.1331(1)(c), 

R 336.2001, R 336.2003, R 336.2004)

2. The permittee shall submit a complete test protocol to the AQD for approval at least 30 days prior to the 

anticipated test date. (R 336.2001(3)) 

3. The permittee shall notify the AQD no less than 7 days prior to the anticipated test date. (R 336.2001(4))

4. No later than November 4, 2015, the permittee shall conduct a stack test for PM pursuant to the provisions 

found in Appendix C-1: PM Emissions Testing and Monitoring Requirements. Thereafter, subsequent stack

tests for PM shall be conducted pursuant to the schedule and provisions found in Appendix C-1: PM 

Emissions Testing and Monitoring Requirements.3,4 (“U.S. V CONSUMERS ENERGY COMPANY, CIVIL 

ACTION 14-13580, E.D. MICH., 2014” – paragraph 153, Act 451 324.5503(b)) 

5. As an alternative to the requirements of SC V.4 PM stack testing, the permittee may forego stack testing and 

instead demonstrate continuous compliance with SC I.5 PM filterable emission limit by using the PM CEMS 

pursuant to conditions contained in Appendix C-1: PM Emissions Testing and Monitoring Requirements.3,4 

(“U.S. V CONSUMERS ENERGY COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” – paragraph 

157, Act 451 324.5503(b))

See Appendix C-1 

VI. MONITORING/RECORDKEEPING

Records shall be maintained on file for a period of five years. (R 336.1201(3))

1. The permittee shall monitor and record the parameters specified in the applicable MAPs. (R 336.1910, 

R 336.1911)

2. The permittee shall monitor and record the opacity from the boiler using a Continuous Opacity Monitoring 

System (COMS), installed, operated and maintained in accordance with 40 CFR Part 60, Appendix B.2 

(R 336.2101(1)(a), R 336.2150(1)(a), R 336.2152(1), R 336.2153(1)(a) and (b), R 336.2154, R 336.2155(1), 

R 336.2190, 40 CFR 64.6(c)(1)(iii)) 

3. The permittee shall install, calibrate, maintain, and operate a continuous emission monitoring system for the 

measurement of gas flow, SO2, CO2, and NOx, in accordance with the provisions of 40 CFR Part 75.2

 

(R 336.1401(1), 40 CFR 52.21 (c) and (d)) 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 9 of 32 

4. For purposes of determining compliance with the Rolling Average Emission Rates for NOx and SO2 as found 

in SC I.2, I.3 and I.6, the permittee shall install and operate CEMS in accordance with the procedures of 

40 C.F.R. Part 75, except that the NOx and SO2 emissions data need not be bias adjusted and the missing 

data substitution procedures of 40 C.F.R. Part 75 shall not apply. If applicable, diluent capping (i.e., 5% 

CO2) will be applied to the NOx emission rate for any hours where the measured CO2 concentration is less 

than 5% following the procedures in 40 C.F.R. Part 75, Appendix F, Section 3.3.4.1. 3,4 (“U.S. V 

CONSUMERS ENERGY COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” paragraphs 99 and 

130, Act 451 324.5503(b)) 

5. By no later than May 4th, 2015, the permittee shall submit to EPA a plan for review and approval for the 

installation and correlation of PM CEMS for EU-KARN1. By no later than 18 months after EPA approval of 

the above PM CEMS installation and correlation plan, the permittee shall install, correlate, maintain, and 

Continuously Operate a PM CEMS pursuant to the conditions contained in Appendix D-1: PM CEMS.3,4

(“U.S. V CONSUMERS ENERGY COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” paragraphs 

159, 160, 163, Act 451 324.5503(b)) 

See Appendix D-1 

VII. REPORTING 

NA 

VIII. STACK/VENT RESTRICTIONS

The exhaust gases from the stacks listed in the table below shall be discharged unobstructed vertically upwards 

to the ambient air unless otherwise noted: 

Stack & Vent ID 

Maximum Exhaust 

Diameter/Dimensions 

(inches) 

Minimum Height 

Above Ground (feet)

Underlying Applicable 

Requirements 

1. SVKARN1 2162 3502 R 336.1201(3)

IX. OTHER REQUIREMENTS

1. The permittee shall comply with all applicable provisions of 40 CFR Part 63, Subpart UUUUU, the National 

Emissions Standard for Hazardous Air Pollutants: Coal- and Oil-fired Electric Utility Steam Generating 

Units. (40 CFR Part 63 Subpart UUUUU)

2. The permittee shall comply with the System-Wide Annual NOx Tonnage Limitations and System-Wide 

Annual SO2 Tonnage Limitations listed in Appendix E-1: System Wide Tonnage Limitations. Emissions from 

EU-KARN1 shall be counted toward the system-wide total emissions.3,4 (“U.S. V CONSUMERS ENERGY 

COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” paragraphs 98, 129, Act 451 324.5503(b))

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 10 of 32 

3. The permittee shall comply with the SO2 and NOx allowance surrender and super-compliance allowance

provisions listed in Appendix F-1: Allowance Provisions.3

(“U.S. V CONSUMERS ENERGY COMPANY, 

CIVIL ACTION 14-13580, E.D. MICH., 2014” paragraphs 101-109 and 132-140, Act 451 324.5503(b))

See Appendix E-1 and Appendix F-1 

Footnotes:

1

This condition is state only enforceable and was established pursuant to Rule 201(1)(b). 

2

This condition is federally enforceable and was established pursuant to Rule 201(1)(a). 

3

This condition is federally enforceable and was established pursuant to the “U.S. V CONSUMERS ENERGY 

COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” and will remain in effect after termination of the 

referenced document. 

4Definitions specific to this condition may be found in Appendix 2-A: Definitions associated with the Consent 

Decree 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 11 of 32 

The following conditions apply to: 

EU-KARN2 

DESCRIPTION: Karn Boiler #2 is a 2540 million BTU per hour dry bottom wall coal fired boiler with fuel oil 

startup capabilities and supplemental co-firing for flame stabilization and mill outages. Particulate emissions are 

controlled by a low pressure high volume (LPHV) pulse jet fabric filter (PJFF). Additionally, Low NOx burners 

are installed. To comply with the Cross State Air Pollution Rule (CSAPR), Selective Catalytic Reduction (SCR), 

and/or the accumulation of adequate NOx allowances will be utilized. A Selective Catalytic Reduction (SCR) 

unit, a spray dry absorber (SDA), and sorbent injection are scheduled to be installed for NOx, SO2, other acid 

gas, and mercury control. 

Flexible Group ID: FG-KARN12 

POLLUTION CONTROL EQUIPMENT: Low NOx burners and PJFF are installed. SCR, SDA, and sorbent 

injection are scheduled for installation.

I. EMISSION LIMITS 

Pollutant Limit 

Time Period /

Operating 

Scenario 

Equipment

Testing / 

Monitoring 

Method 

Underlying Applicable 

Requirements 

1. SO2 1.67 lbs/mmBtu 

heat input**2

Monthly calendar average EU-KARN2 SC VI.3 R 336.1401(1)

2. SO2 0.090 pounds per 

MMBtu heat input3

Based on a 30-day Rolling 

Average Emission Rate. 

This limit applies beginning 

60 Operating Days after 

April 15, 2015, or as 

otherwise agreed upon by 

EPA pursuant to the 

Consent Decree. 3,4

EU-KARN2 SC VI.4 “U.S. V CONSUMERS 

ENERGY COMPANY, 

CIVIL ACTION 14-13580, 

E.D. MICH., 2014” 

paragraph 118, 

Act 451 324.5503(b) 

3. SO2 0.075 pounds per 

MMBtu heat input3

Based on a 365-day Rolling 

Average Emission Rate. 

This limit applies beginning 

365 Operating Days after 

April 15, 2015, or as 

otherwise agreed upon by 

EPA pursuant to the 

Consent Decree. 3,4

EU-KARN2 SC VI.4 “U.S. V CONSUMERS 

ENERGY COMPANY, 

CIVIL ACTION 14-13580, 

E.D. MICH., 2014” 

paragraph 118, 

Act 451 324.5503(b) 

4. PM 0.16 lb/1000 lb 

exhaust gas, 

corrected to 50% 

excess air2

Test Protocol* EU-KARN2 SC V.1 R 336.1331(1)(c)

5. PM 0.015 pound per 

MMBtu heat input3

At all times, as verifiable 

through required stack 

testing. 

This limit applies 30 

Operating Days after 

November 4, 2014 (i.e. 

January 31, 2015) 3,4

EU-KARN2 SC V.4, 

SC V.5 

(See 

Appendix 

C-1) 

“U.S. V CONSUMERS 

ENERGY COMPANY, 

CIVIL ACTION 14-13580, 

E.D. MICH., 2014” 

paragraph 148, 

Act 451 324.5503(b) 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 12 of 32 

Pollutant Limit 

Time Period /

Operating 

Scenario 

Equipment

Testing / 

Monitoring 

Method 

Underlying Applicable 

Requirements 

6. NOx 0.080 pound per 

MMBtu heat input3

Based on a 30-day Rolling 

Average Emission Rate. 

This limit applies beginning 

60 Operating Days after the 

November 4, 2014.3,4

EU-KARN2 SC VI.4 “U.S. V CONSUMERS 

ENERGY COMPANY, 

CIVIL ACTION 14-13580, 

E.D. MICH., 2014” 

paragraph 87, 

Act 451 324.5503(b) 

7. Opacity 20%3,4 Per 6-minute period except 

for one 6-minute period per 

hour of not more than 27%

EU-KARN2 SC VI.2 “U.S. V CONSUMERS 

ENERGY COMPANY, 

CIVIL ACTION 14-13580, 

E.D. MICH., 2014” 

paragraph 151 

* Test protocol shall specify averaging time 

**1.0 percent sulfur by weight in coal at 12,000 BTU per pound is equivalent to 1.67 pounds per million BTU heat 

input. Compliance with this emission limitation shall be based upon the monthly average of continuous emission 

monitoring data. (R 336.1401(1))

See Appendix C-1 

II. MATERIAL LIMITS 

Material Limit 

Time Period /

Operating 

Scenario 

Equipment 

Testing / 

Monitoring 

Method 

Underlying 

Applicable 

Requirements 

NA NA NA NA NA NA 

III. PROCESS/OPERATIONAL RESTRICTIONS 

1. The permittee shall not operate EU-KARN2 unless a Malfunction Abatement Plan (MAP) as described in 

Rule 911(2), for the emission control equipment is implemented and maintained. The MAP shall, at a 

minimum, specify the following: 

a. A complete preventative maintenance program including identification of the supervisory personnel 

responsible for overseeing the inspection, maintenance, and repair of air-cleaning devices, a description 

of the items or conditions that shall be inspected, the frequency of the inspections or repairs, and an 

identification of the major replacement parts that shall be maintained in inventory for quick replacement. 

b. An identification of the source and air-cleaning device operating variables that shall be monitored to 

detect a malfunction or failure, the normal operating range of these variables, and a description of the 

method of monitoring or surveillance procedures. 

c. A description of the corrective procedures or operational changes that shall be taken in the event of a 

malfunction or failure to achieve compliance with the applicable emission limits. 

If at any time the MAP fails to address or inadequately addresses an event that meets the characteristics of 

a malfunction, the permittee shall amend the MAP within 45 days after such an event occurs. The permittee 

shall also amend the MAP within 90 days, if new equipment is installed or upon request from the District 

Supervisor. The permittee shall submit the MAP and any amendments to the MAP to the AQD District 

Supervisor for review and approval. If the AQD does not notify the permittee within 90 days of submittal, the 

MAP or amended MAP shall be considered approved. Until an amended plan is approved, the permittee 

shall implement corrective procedures or operational changes to achieve compliance with all applicable

emission limits.2 (R 336.1910, R 336.1911) 

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 13 of 32 

2. Commencing 60 Operating Days after November 4, 2014 and continuing thereafter, Consumers shall 

Continuously Operate the PJFF and use good air pollution control practices to maximize the PM emission

reductions at all times when the Unit is in operation. The requirements of Appendix G-1 shall be met.3, 4

(“U.S. V CONSUMERS ENERGY COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” – 

paragraph 141, Act 451 324.5503(b)) 

See Appendix G-1 

IV. DESIGN/EQUIPMENT PARAMETERS 

1. The permittee shall not operate EU-KARN2 unless the SCR, fabric filter baghouse (PJFF), and (after 

startup and shakedown) the SDA, sorbent injection (for mercury control) are installed, maintained, and

operated in a satisfactory manner. Satisfactory manner includes operating and maintaining each control 

device in accordance with an approved MAP for EU-KARN2 as required in SC III.1.2

(R 336.1910) 

2. The permittee shall not operate EU-KARN2 unless the SCR and fabric filter are Continuously Operated.

3,4

(“U.S. V CONSUMERS ENERGY COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” – 

paragraphs 86 and 148, Act 451 324.5503(b))

3. The permittee shall not operate EU-KARN2 after April 15, 2015, or as otherwise agreed upon by EPA 

pursuant to the Consent Decree, unless the SDA is Continuously Operated.3,4 (“U.S. V CONSUMERS 

ENERGY COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” – paragraph 118, Act 451 

324.5503(b))

V. TESTING/SAMPLING 

Records shall be maintained on file for a period of five years. (R 336.1201(3)) 

1. Once every three years, or more frequently upon request of the AQD, permittee shall verify the PM emission 

rate from EU-KARN2 by testing, utilizing USEPA Reference Method 17 (Determination of Particulate 

Emissions from Stationary Sources (In-stack Filtration Method)) or other AQD approved test method, at 

permittee’s expense, and in accordance with Department requirements. Verification of emission rates 

includes the submittal of a complete report of the test results within 60 days of test completion. 

(R 336.1331, R 336.2001, R 336.2003, R 336.2004) 

 

2. The permittee shall submit a complete test protocol to the AQD for approval at least 30 days prior to the 

anticipated test date. (R 336.2001(3)) 

3. The permittee shall notify the AQD no less than 7 days prior to the anticipated test date. (R 336.2001(4)) 

4. No later than November 4, 2015, the permittee shall conduct a stack test for PM pursuant to the provisions 

found in Appendix C-1: PM Emissions Testing and Monitoring Requirements. Thereafter, subsequent stack

tests for PM shall be conducted pursuant to the schedule and provisions found in Appendix C-1: PM 

Emissions Testing and Monitoring Requirements.3,4 (“U.S. V CONSUMERS ENERGY COMPANY, 

CIVIL ACTION 14-13580, E.D. MICH., 2014” – paragraph 153, Act 451 324.5503(b)) 

5. As an alternative to the requirements of SC V.4 PM stack testing, the permittee may forego stack testing 

and instead demonstrate continuous compliance with SC I.5 PM filterable emission limit by using the PM

CEMS pursuant to conditions contained in Appendix C-1: PM Emissions Testing and Monitoring 

Requirements.3,4 (“U.S. V CONSUMERS ENERGY COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 

2014” – paragraph 157, Act 451 324.5503(b))

See Appendix C-1 

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 14 of 32 

VI. MONITORING/RECORDKEEPING

Records shall be maintained on file for a period of five years. (R 336.1201(3))

1. The permittee shall monitor and record the parameters specified in the applicable MAPs. (R 336.1910, 

R 336.1911)

2. The permittee shall monitor and record the opacity from the boiler using a Continuous Opacity Monitoring 

System (COMS), installed, operated and maintained in accordance with 40 CFR Part 60, Appendix B.2

 

(R 336.2101)(1)(a), R 336.2150(1)(a), R 336.2152(1), R 336.2153(1)(a) and (b), R 336.2154, 

R 336.2155(1), R 336.2190, 40 CFR 64.6(c)(1)(iii)) 

3. The permittee shall install, calibrate, maintain and operate a continuous emission monitoring system for the 

measurement of gas flow, SO2, CO2, and NOx, in accordance with the provisions of 40 CFR Part 75, 

Appendix B.2

 (R 336.1401, 40 CFR 52.21 (c) and (d)) 

4. For purposes of determining compliance with the Rolling Average Emission Rates for NOx and SO2 as found 

in SC I.2, I.3 and I.6, the permittee shall install and operate CEMS in accordance with the procedures of 

40 C.F.R. Part 75, except that the NOx and SO2 emissions data need not be bias adjusted and the missing 

data substitution procedures of 40 C.F.R. Part 75 shall not apply. If applicable, diluent capping (i.e., 5% 

CO2) will be applied to the NOx emission rate for any hours where the measured CO2 concentration is less 

than 5% following the procedures in 40 C.F.R. Part 75, Appendix F, Section 3.3.4.1.3,4 (“U.S. V 

CONSUMERS ENERGY COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” paragraphs 99 and 

130, Act 451 324. 324.5503(b)) 

5. By no later than May 4th, 2015, the permittee shall submit to EPA a plan for review and approval for the 

installation and correlation of PM CEMS for EU-KARN2. By no later than 18 months after EPA approval of 

the above PM CEMS installation and correlation plan, the permittee shall install, correlate, maintain, and 

Continuously Operate a PM CEMS pursuant to the conditions contained in Appendix D-1: PM CEMS.3,4

(“U.S. V CONSUMERS ENERGY COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” paragraphs 

159, 160, 163, Act 451 324.5503(b)) 

See Appendix D-1 

VII. REPORTING 

NA 

VIII. STACK/VENT RESTRICTIONS

The exhaust gases from the stacks listed in the table below shall be discharged unobstructed vertically upwards 

to the ambient air unless otherwise noted: 

Stack & Vent ID 

Maximum Exhaust 

Diameter/Dimensions 

(inches) 

Minimum Height 

Above Ground 

(feet) 

Underlying Applicable 

Requirements 

1. SVKARN2 2162 3502 R 336.2803, R 336.2804, 

40 CFR 52.21 (c) and (d) 

IX. OTHER REQUIREMENTS

1. The permittee shall comply with all applicable provisions of 40 CFR Part 63, Subpart UUUUU, the National 

Emissions Standard for Hazardous Air Pollutants: Coal- and Oil-fired Electric Utility Steam Generating 

Units. (40 CFR Part 63 Subpart UUUUU)
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 15 of 32 

2. The permittee shall comply with the System-Wide Annual NOx Tonnage Limitations and System-Wide 

Annual SO2 Tonnage Limitations listed in Appendix E-1: System Wide Tonnage Limitations. Emissions from 

EU-KARN2 shall be counted toward the system-wide total emissions.3,4

 (“U.S. V CONSUMERS ENERGY 

COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” paragraphs 98, 129, Act 451 324.5503(b))

3. The permittee shall comply with the SO2 and NOx allowance surrender and super-compliance allowance

provisions listed in Appendix F-1: Allowance Provisions. 3 (“U.S. V CONSUMERS ENERGY COMPANY, 

CIVIL ACTION 14-13580, E.D. MICH., 2014” paragraphs 101-109 and 132-140, Act 451 324.5503(b))

See Appendix E-1 and Appendix F-1 

Footnotes:

1

This condition is state only enforceable and was established pursuant to Rule 201(1)(b). 

2

This condition is federally enforceable and was established pursuant to Rule 201(1)(a). 

3

This condition is federally enforceable and was established pursuant to the “U.S. V CONSUMERS ENERGY 

COMPANY, CIVIL ACTION 14-13580, E.D. MICH., 2014” and will remain in effect after termination of the 

referenced document. 

4Definitions specific to this condition may be found in Appendix 2-A: Definitions associated with the Consent 

Decree 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 16 of 32 

Appendices 

Appendix A-1. Definitions associated with the Consent Decree 

The following phrases and terms are specifically defined in relation to those special conditions associated with 

“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” (the Consent Decree) . 

• For the purposes of the Consent Decree, every term expressly defined by this Appendix shall have 

the meaning given that term herein. Every other term used in the Consent Decree that is also a 

term used under the Act or in a federal regulation implementing the Act shall mean in the Consent 

Decree what such term means under the Act or those regulations. (“U.S. v Consumers Energy 

Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 4)

• A "30-Day Rolling Average Emission Rate" for a Unit shall be expressed in lb/mmBTU and 

calculated in accordance with the following procedure: first, sum the total pounds of NOx or SO2

emitted from the Unit during the current Unit Operating Day and the previous 29 Unit Operating 

Days; second, sum the total heat input to the Unit in mmBTU during the current Unit Operating Day 

and the previous 29 Unit Operating Days; and third, divide the total number of pounds of NOx or 

SO2 emitted during the 30 Unit Operating Days by the total heat input during the 30 Unit Operating 

Days. A new 30-Day Rolling Average Emission Rate shall be calculated for each new Unit 

Operating Day. Each 30-Day Rolling Average Emission Rate shall include all emissions that occur 

during all periods within any Unit Operating Day, including emissions from startup, shutdown, and 

Malfunction, except as otherwise provided by Section XV (Force Majeure – beginning at paragraph 

214 of the Consent Decree). (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. 

Mich., 2014” paragraph 5) 

• A "90-Day Rolling Average Emission Rate" for a Unit shall be expressed in lb/mmBTU and 

calculated in accordance with the following procedure: first, sum the total pounds of NOx or SO2

emitted from the Unit during the current Unit Operating Day and the previous 89 Unit Operating 

Days; second, sum the total heat input to the Unit in mmBTU during the current Unit Operating 

Day and the previous 89 Unit Operating Days; and third, divide the total number of pounds of NOx

or SO2 emitted during the 90 Unit Operating Days by the total heat input during the 90 Unit 

Operating Days. A new 90-Day Rolling Average Emission Rate shall be calculated for each new 

Unit Operating Day. Each 90-Day Rolling Average Emission Rate shall include all emissions that 

occur during all periods within any Unit Operating Day, including emissions from startup, 

shutdown, and Malfunction, except as otherwise provided by Section XV (Force Majeure – 

beginning at paragraph 214 of the Consent Decree). (“U.S. v Consumers Energy Company, Civil 

Action 14-13580, E.D. Mich., 2014” paragraph 6) 

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 17 of 32 

• A "365-Day Rolling Average Emission Rate" for a Unit shall be expressed in lb/mmBTU and 

calculated in accordance with the following procedure: first, sum the pounds of the pollutant in 

question emitted from the Unit during the most recent Unit Operating Day and the previous 364 

Unit Operating Days; second, sum the total heat input to the Unit in mmBTU during the most 

recent Unit Operating Day and the previous 364 Unit Operating Days; and third, divide the total 

number of pounds of the pollutant emitted during the 365 Unit Operating Days by the total heat 

input during the 365 Unit Operating Days. A new 365-Day Rolling Average Emission Rate shall be 

calculated for each new Unit Operating Day. Each 365-Day Rolling Average Emission Rate shall 

include all emissions that occur during all periods of operation, including startup, shutdown, and 

Malfunction, except as otherwise provided by Section XV (Force Majeure – beginning at paragraph 

214 of the Consent Decree). (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. 

Mich., 2014” paragraph 7)

• "Baghouse" means a full stream (fabric filter or membrane) particulate emissions control device. Full 

stream is defined as capturing the entire stream of exhaust gas with no concurrent by-pass. (“U.S. v 

Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 8) 

• "Campbell" means Consumers' J.H. Campbell Generating Plant consisting of three electric utility 

steam-generating units designated as Unit I (260 MW), Unit 2 (360 MW), and Unit 3 (835 MW) and 

related equipment, located in West Olive, Ottawa County, Michigan. Campbell Unit 3 is co-owned by 

Consumers (approximately 93%) along with Wolverine Power Supply Cooperative and the Michigan 

Public Power Association. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. 

Mich., 2014” paragraph 10)

• "CEMS" or "Continuous Emission Monitoring System," means, for obligations involving the 

monitoring of NOx and SO2 emissions under the Consent Decree, the devices defined in 40 C.F.R. § 

72.2 and installed and maintained as required by 40 C.F.R. Part 75. (“U.S. v Consumers Energy 

Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 12)

• "Clean Air Act" or "CAA'' or "Act" means the federal Clean Air Act, 42 U.S.C. §§ 7401-7671q, and it’s 

implementing regulations. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. 

Mich., 2014” paragraph 13)

• "Cobb" means, for purposes of the Consent Decree, Consumers' B.C. Cobb Generating Plant 

consisting of two electric utility steam-generating units designated as Unit 4 (160 MW) and Unit 5 

(160 MW) and related equipment, located in Muskegon, Muskegon County, Michigan. (“U.S. v 

Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 14)

• "Consent Decree" means Consent Decree (“U.S. v Consumers Energy Company, Civil Action 14-

13580, E.D. Mich., 2014”) and its Appendices. (“U.S. v Consumers Energy Company, Civil Action 

14-13580, E.D. Mich., 2014” paragraph 15)

• "Consumers" means Consumers Energy Company. (“U.S. v Consumers Energy Company, Civil 

Action 14-13580, E.D. Mich., 2014” paragraph 16)

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 18 of 32 

• "Consumers System" means the Campbell, Cobb, Karn, Weadock, and Whiting facilities as defined 

herein. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” 

paragraph 17)

• "Continuously Operate" or "Continuous Operation" means that when a pollution control technology or 

combustion control is required to be used at a Unit pursuant to the Consent Decree (including, but not

limited to, SCR, FGD, DSI, ESP, Baghouse, or Low NOx Combustion System), it shall be operated at 

all times that the Unit it serves is in operation (except as otherwise provided by Section XV (Force 

Majeure – beginning at paragraph 214 of the Consent Decree)), consistent with the technological 

limitations, manufacturers' specifications, good engineering and maintenance practices and good air 

pollution control practices for minimizing emissions (as defined in 40 C.F.R. § 60.11(d)), as applicable,

for such equipment and the Unit. (“U.S. v Consumers Energy Company, Civil Action 14-13580, 

E.D. Mich., 2014” paragraph 18)

• "Date of Entry" means the date the Consent Decree was signed by the United States District Court 

Judge (i.e. November 4, 2014). (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. 

Mich., 2014” paragraph 19)

• "Day" means calendar day unless otherwise specified in the Consent Decree. (“U.S. v Consumers 

Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 21)

• "Dry Sorbent Injection" or "DSI" means a process in which a sorbent is pneumatically injected into the 

ducting downstream of where the coal is combusted and flue gas is produced, and upstream of the PM 

Control Device. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” 

paragraph 22)

• "Electrostatic Precipitator" or "ESP" means a device for removing particulate matter from combustion 

gases by imparting an electric charge to the particles and then attracting them to a metal plate or 

screen of opposite charge before the combustion gases are exhausted to the atmosphere. (“U.S. v 

Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 23)

• "Emission Rate" for a given pollutant means the number of pounds of that pollutant emitted per 

million British Thermal Units of heat input (lb/mmBTU), calculated in accordance with the Consent 

Decree. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” 

paragraph 24)

• "Flue Gas Desulfurization System" or "FGD" means a pollution control device that employs flue gas 

desulfurization technology, including an absorber or absorbers utilizing lime or limestone, or a 

sodium based material, for the reduction of SO2 emissions. (“U.S. v Consumers Energy 

Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 27)

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 19 of 32 

• “Force Majeure” means an event that has been or will be caused by circumstances beyond the control of

Consumers, its contractors, or any entity controlled by Consumers that delays compliance with any 

provision of the Consent Decree or otherwise causes a violation of any provision of the Consent Decree

despite Consumers’ best efforts to fulfill the obligation. “Best efforts to fulfill the obligation” include using 

the best efforts to anticipate any potential Force Majeure Event and to address the effects of any such 

event (a) as it is occurring and (b) after it has occurred, such that the delay and any adverse 

environmental effect of the delay or violation is minimized to the greatest extent possible. the kinds of 

events listed below are among those that could qualify as Force Majeure Events within the meaning of this 

Section: construction, labor, or equipment delays; Malfunction of a Unit or emission control device; 

unanticipated coal supply or pollution control reagent delivery interruptions; acts of God; acts of war or 

terrorism; and orders by a government official, government agency, other regulatory authority, or a 

regional transmission organization, acting under and authorized by applicable law, that directs Consumers 

to supply electricity in response to a system-wide (state-wide or regional) emergency or is necessary to 

preserve the reliability of the bulk power system. Depending upon the circumstances and Consumers’ 

response to such circumstances, failure of a permitting authority to issue a necessary permit in a timely 

fashion may constitute a Force Majeure Event where the failure of the permitting authority to act is beyond 

the control of Consumers and Consumers has taken all steps available to it to obtain the necessary 

permit, including, but not limited to: submitting a complete permit application; responding to requests for 

additional information by the permitting authority in a timely fashion; and accepting lawful permit terms and 

conditions after expeditiously exhausting any legal rights to appeal terms and conditions imposed by the 

permitting authority. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 

2014” paragraphs 214 & 221) 

• "Fossil Fuel" means any hydrocarbon fuel, including coal, petroleum coke, petroleum oil, or natural gas. 

(“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 29)

• "Full Stream Operation" is defined as the design configuration of a control device such that it captures 

the entire stream of exhaust gas with no concurrent by-pass. (“U.S. v Consumers Energy Company, 

Civil Action 14-13580, E.D. Mich., 2014” paragraph 30)

• "Karn," for purposes of the Consent Decree, means Consumers' D.E. Karn Generating Plant consisting 

of two electric utility steam-generating units designated as Unit 1 (255 MW) and Unit 2 (260 MW) and 

related equipment, located in Essexville, Bay County, Michigan. Karn does not include the oil-fired 

electricity generating units designated as Karn Units 3 and 4, also located in Essexville, Bay County, 

Michigan. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” 

paragraph 34)

• "Karn Units 3 and 4" means Consumers' oil-fired Units 3 and 4, in Essexville, Bay County, 

Michigan. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” 

paragraph 35)

• "KW" means Kilowatt or one thousand watts net. (“U.S. v Consumers Energy Company, Civil Action 

14-13580, E.D. Mich., 2014” paragraph 36)

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 20 of 32 

• "lb/mmBTU" means one pound per million British Thermal Units. (“U.S. v Consumers Energy 

Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 37)

• "Low NOx Combustion System" means burners and associated combustion air control equipment, 

including Over Fire Air if specified, which control mixing characteristics of Fossil Fuel and oxygen, thus 

restraining the formation of NOx during combustion of fuel in the boiler. (“U.S. v Consumers Energy 

Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 38)

• "Malfunction" means a failure to operate in a normal or usual manner by any air pollution control 

equipment, process equipment, or a process, which is sudden, infrequent, and not reasonably 

preventable. Failures that are caused in part by poor maintenance or careless operation are not 

Malfunctions. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” 

paragraph 39)

• "Michigan SIP" means the Michigan State Implementation Plan, and any amendments thereto, as 

approved by EPA pursuant to Section 110 of the Act, 42 U.S.C. § 7410. (“U.S. v Consumers Energy 

Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 40)

• "MW" means a megawatt or one million watts net. (“U.S. v Consumers Energy Company, Civil 

Action 14-13580, E.D. Mich., 2014” paragraph 41)

• "NOx'' means oxides of nitrogen, measured in accordance with the provisions of the Consent Decree. 

(“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 45)

• "NOx Allowance" means an authorization to emit a specified amount of NOx that is allocated or issued 

under an emissions trading or marketable permit program of any kind established under the Clean Air 

Act or the Michigan SIP; provided, however, that with respect to any such program that first applies to 

emissions occurring after December 31, 2011, a "NOx Allowance" shall include an allowance created and 

allocated to a Consumers System Unit under such program only for control periods starting on or after 

the fourth anniversary of the Date of Entry of the Consent Decree. (“U.S. v Consumers Energy 

Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 46)

• "Operating Day" means any calendar day on which a Unit fires Fossil Fuel. (“U.S. v Consumers 

Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 49)

• "Over Fire Air" or "OFA" mean an in-furnace staged combustion control to reduce NOx emissions. (“U.S. 

v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 51)

• "PM" means total filterable particulate matter, measured in accordance with the provisions of the 

Consent Decree. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 

2014” paragraph 53)

• "PM Continuous Emission Monitoring System" or "PM CEMS" means, for obligations involving the 

monitoring of PM emissions under the Consent Decree, the equipment that samples, analyzes, 

measures, and provides, by readings taken at frequent intervals, an electronic and/or paper record of 

PM emissions. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” 

paragraph 54)

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 21 of 32 

• "PM Control Device" means any device, including an ESP or Baghouse, which reduces emissions of 

PM. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 

55) 

• "PM Emission Rate" means the number of pounds of PM emitted per million BTU of heat input 

(lb/mmBTU). (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” 

paragraph 56)

• "Selective Catalytic Reduction" or "SCR" means an air pollution control device for reducing NOx

emissions in which ammonia ("NH3") is added to the flue gas and then passed through layers of a 

catalyst material. The ammonia and NOx in the flue gas stream react on the surface of the catalyst, 

forming nitrogen ("N2") and water vapor. (“U.S. v Consumers Energy Company, Civil Action 14-

13580, E.D. Mich., 2014” paragraph 61)

• "SO2" means sulfur dioxide, measured in accordance with the provisions of the Consent Decree. 

(“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 62) 

• "SO2 Allowance" means an authorization to emit a specified amount of SO2 that is allocated or issued 

under an emissions trading or marketable permit program of any kind established under the Clean Air 

Act or the Michigan SIP; provided, however, that with respect to any such program that first applies to 

emissions occurring after December 31, 2011, an "SO2 Allowance" shall include an allowance created 

and allocated to a Consumers System Unit under such program only for control periods starting on or 

after the fourth anniversary of the Date of Entry of the Consent Decree. (“U.S. v Consumers Energy 

Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 63)

• "State Implementation Plan" or "SIP" means regulations and other materials promulgated by a state for

purposes of meeting the requirements of the Act that have been approved by EPA pursuant to Section 110

ofthe Act, 42 U.S.C. § 7410. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. 

Mich., 2014” paragraph 65)

• "Surrender" or "Surrender of Allowances" means, for purposes of SO2 or NOx allowances, permanently 

surrendering allowances from the accounts administered by EPA and Michigan for all Units in the 

Consumers System, so that such allowances can never be used thereafter to meet any compliance 

requirements under the Act, a SIP, or the Consent Decree. (“U.S. v Consumers Energy Company, 

Civil Action 14-13580, E.D. Mich., 2014” paragraph 66)

• "System-Wide Annual NOx Tonnage Limitation" means the limitations, as specified in the Consent 

Decree, on the number of tons of NOx that may be emitted from Campbell , Cobb, Kam, Weadock, and 

Whiting, collectively, during the relevant calendar year i .e., January 1 through December 31), and shall 

include all emissions of NOx during all periods of operations, including startup, shutdown, and 

Malfunction. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” 

paragraph 67)

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 22 of 32 

• "System-Wide Annual SO2 Tonnage Limitation" means the limitations, as specified in the Consent 

Decree, on the number of tons of SO2 that may be emitted from Campbell, Cobb, Kam, Weadock, and 

Whiting, collectively, during the relevant calendar year (i.e., January 1 through December 31), and shall 

include all emissions of SO2 during all periods of operations, including startup, shutdown, and Malfunction.

(“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 68)

• "Title V Permit" means the permit required of Consumers' major sources pursuant to 

Subchapter V of the Act, 42 U.S.C. §§ 7661-7661e. (“U.S. v Consumers Energy Company, 

Civil Action 14-13580, E.D. Mich., 2014” paragraph 69)

• "Unit" means collectively, the coal pulverizer, stationary equipment that feeds coal to the boiler, the 

boiler that produces steam for the steam turbine, the steam turbine, the generator, the equipment 

necessary to operate the generator, steam turbine, and boiler, and all ancillary equipment, including 

pollution control equipment and systems necessary for production of electricity. An electric steam 

generating station may comprise one or more Units. (“U.S. v Consumers Energy Company, Civil 

Action 14-13580, E.D. Mich., 2014” paragraph 70)

• "Urea Based Ammonia System" or "UBAS" means a type of ammonia feed system for SCRs where 

solid urea pellets are stored in a silo. Upon use, the solid urea is heated to liquid, thermally 

decomposed to ammonia, and injected into the SCR as the reagent for the NOx reduction reaction. 

(“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 71)

• "Weadock" means, for purposes of the Consent Decree, Consumers' J.C. Weadock Generating 

Plant consisting of two electric utility steam-generating Units designated as Unit 7 (155 MW) and 

Unit 8 ( 155 MW) and related equipment, located in Essexville, Bay County, Michigan. (“U.S. v 

Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 72)

• "Whiting" means, for purposes of the Consent Decree, Consumers' Whiting Generation Station 

consisting of three electric utility steam-generating Units designated as Unit 1 (102 MW), Unit 2 

(102 MW), and Unit 3 (124 MW) and related equipment, located in Luna Pier, Monroe County, 

Michigan. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” 

paragraph 73)

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 23 of 32 

Appendix B-1: Used as a placeholder. 

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 24 of 32 

Appendix C-1: PM Emissions Testing and Monitoring Requirements 

• Within 12 months of the Date of Entry, and continuing annually thereafter (unless a Unit is Retired or 

Refueled to Natural Gas), Consumers shall conduct a stack test for PM pursuant to Paragraphs 154 

and 156 of the Consent Decree. The annual performance test requirement imposed on Consumers by 

this paragraph may be satisfied by stack tests conducted by Consumers as may be required by its 

permits from the State of Michigan for any year that such stack tests are required under the permits. 

Consumers may perform testing every other year, rather than every year, provided that two of the most 

recently completed test results from tests conducted in accordance with the methods and procedures 

specified in the Consent Decree demonstrate that the PM emissions are equal to or less than 0.015 

lb/mmBTU if the applicable rate is 0.030 lb/mmBTU, and 0.010 lb/mmBTU if the applicable rate is 

0.015 lb/mmBTU. Consumers shall perform testing every year, rather than every other year, beginning 

in the year immediately following any test result demonstrating that the PM emissions are greater than

0.015 lb/mmBTU if the applicable rate is 0.030 lb/mmBTU, and 0.010 lb/mmBTU if the applicable rate 

is 0.015 lb/mmBTU. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 

2014” paragraph 153)

• To determine compliance with the PM Emission Rate established in Subsections VI.C (Unit-Specific PM 

Requirements at Kam Units I and 2; beginning at paragraph 147 of the Consent Decree), Consumers 

shall use the applicable reference methods and procedures (filterable portion only) specified in its 

CAA permits and the Michigan SIP for Kam Units 1 and 2. Each test shall consist of three separate 

runs performed under representative operating conditions not including periods of startup, shutdown, 

or Malfunction. The sampling time for each run associated with a Unit controlled by a Baghouse shall 

be at least 120 minutes and the volume of each run shall be at least 1.70 dry standard cubic meters (60 

dry standard cubic feet). The sampling time for each run associated with a Unit controlled by an ESP 

shall be at least 60 minutes and the volume of each run shall be at least 30 dry standard cubic feet.

Consumers shall calculate the PM Emission Rate from the stack test results in accordance with 40 

C.F.R . § 60.8(f). The results of each PM stack test shall be submitted to EPA within 60 Days of 

completion of each test. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. 

Mich., 2014” paragraph 154)

• As an alternative to the PM testing required in this Appendix C-1: PM Emissions Testing and Monitoring 

Requirements, following the installation and operation of PM CEMS as required by Appendix D-2: PM 

CEMS, Consumers, at its sole discretion, may seek EPA approval pursuant to Section XIII (Review and 

Approval of Submittals; beginning at paragraph 193 of the Consent Decree) to forego stack testing and 

instead demonstrate continuous compliance with an applicable filterable PM Emission Rate by using the 

PM CEMS data on a 3-hour rolling average basis. (“U.S. v Consumers Energy Company, Civil 

Action 14-13580, E.D. Mich., 2014” paragraph 157)

 
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Permit No. 40-15 Page 25 of 32 

Appendix D-1: PM CEMS 

• Consumers shall install, correlate, maintain, and operate two PM CEMS as specified below. The PM 

CEMS shall comprise a continuous particle mass monitor measuring particulate matter concentration, 

directly or indirectly, on an hourly average basis and a diluent monitor used to convert the concentration to 

units expressed in lb/mmBTU. The PM CEMS installed at each Unit must be appropriate for the anticipated 

stack conditions and capable of measuring PM concentrations on an hourly average basis. Consumers 

shall maintain, in an electronic database, the hourly average emission values of all PM CEMS in 

lb/mmBTU. Except for periods of monitor malfunction, maintenance, calibration, or repair, Consumers 

shall continuously operate the PM CEMS at all times when the Unit it serves is operating. (“U.S. v 

Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 159)

• By no later than six (6) months from the Date of Entry of the Consent Decree, Consumers shall submit to 

EPA for review and approval pursuant to Section XIII (Review and Approval of Submittals; beginning at 

paragraph 193) of the Consent Decree a plan for the installation and correlation of two PM CEMS at Karn 

Unit I and Karn Unit 2. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 

2014” paragraph 160)

• By no later than six months from the submittal of a plan in Paragraph 160 of the Consent Decree, 

Consumers shall submit to EPA for review and approval pursuant to Section XIII (Review and Approval of

Submittals; beginning at paragraph 193 of the Consent Decree) a proposed Quality Assurance/Quality 

Control ("QA/QC") protocol that shall be followed for such PM CEMS. (“U.S. v Consumers Energy 

Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 161)

• In developing both the plan for installation and correlation of the PM CEMS and the QA/QC protocol, 

Consumers shall use the criteria set forth in 40 C.F.R. Part 60, Appendix B, Performance Specification 11 

,and Appendix F, Procedure 2. Following EPA's approval of the plan described in Paragraph 160 of the

Consent Decree, and the QA/QC protocol described in Paragraph 161, Consumers shall thereafter 

operate the PM CEMS in accordance with the approved plan and QA/QC protocol. Notwithstanding any 

other provision of the Consent Decree, exceedances of the PM Emission Rate that occur as a result of deoptimizing emission controls and/or spiking the exhaust gas with excess particulate required to achieve the 

high level PM test runs during the correlation testing shall not be a violation of the requirements of the 

Consent Decree (or credible evidence thereof) ; provided, however, that Consumers shall make best 

efforts to keep the high level PM test runs during such correlation testing below the applicable PM 

Emission Rate. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” 

paragraph 162)

• By no later than eighteen (18) months after the date that EPA approves the plan described in 

Paragraph 160 of the Consent Decree, Consumers shall install, correlate, maintain, and commence

Continuous Operation of the PM CEMS approved by EPA at Karn Units 1 and 2, conduct

performance specification tests on the PM CEMS, and demonstrate compliance with the PM CEMS 

installation and correlation plans submitted to and approved by EPA. (“U.S. v Consumers Energy 

Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 163)
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Permit No. 40-15 Page 26 of 32 

• Except as approved pursuant to paragraph 157 of the Consent Decree, stack testing shall be used 

to determine compliance with the PM Emission Rates established by the Consent Decree. Data 

from PM CEMS shall be used, at a minimum, to provide information to operators on PM emissions 

rate trends on a continuous basis. (“U.S. v Consumers Energy Company, Civil Action 14-

13580, E.D. Mich., 2014” paragraph 164)

 
Consumers Energy D.E. Karn Plant (B2840) April 30, 2015 

Permit No. 40-15 Page 27 of 32 

Appendix E-1: System Wide Tonnage Limitations 

System-Wide Annual NOx Tonnage Limitations 

The Consumers System, collectively, shall operate so as not to exceed the following 

System-Wide Annual NOx Tonnage Limitations: 

For the Calendar Year Specified Below: System-Wide Annual NOx Tonnage

Limitation: 

2015 15,245

2016 9,319 

2017 and continuing each calendar 

year thereafter 

6,912 

[cap shall adjust to 6,600 if Consumers 

elects to Retire Cobb 4 and 5] 

 (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 98) 

• For purposes of calculating the System-Wide Annual NOx Tonnage Limitations, Consumers shall use CEMS 

in accordance with the procedures specified in 40 C.F.R. Part 75, which includes the requirements 

associated with the concepts of bias adjustments and missing data substitution. (“U.S. v Consumers 

Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 100)

System-Wide Annual SO2 Tonnage Limitations 

The Consumers System, collectively, shall operate so as not to exceed the following 

System-Wide Annual SO2 Tonnage Limitations: 

For the Calendar Year Specified Below: System-Wide Annual SO2 Tonnage

Limitation: 

2015 57,900

2016 34,000 

2017 and continuing each calendar 

year thereafter 10,900 

 (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 129) 

• For purposes of calculating the System-Wide Annual SO2 Tonnage Limitations, Consumers shall use CEMS 

in accordance with the procedures specified in 40 C.F.R. Part 75, which includes the requirements 

associated with the concepts of bias adjustments and missing data substitution. (“U.S. v Consumers 

Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 131) 
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Permit No. 40-15 Page 28 of 32 

Appendix F-1: Allowance Provisions 

Use and Surrender of NOx Allowances 

• Consumers shall not use NOx Allowances to comply with any requirement of the Consent Decree, as 

enumerated in this permit, including by claiming compliance with any emission limitation required by the 

Consent Decree, as provided in this permit, by using, tendering, or otherwise applying NOx Allowances to 

offset any excess emissions. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. 

Mich., 2014” paragraph 101)

• Except as provided by Appendix F-1: Allowance Provisions, Consumers shall not sell, bank, trade, or 

transfer any NOx Allowances allocated to the Consumers System Units. Nothing in the Consent Decree 

shall restrict Consumers’ ability to transfer NOx Allowances among its own facility or general accounts. 

(“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 102)

• Beginning with the year 2014 compliance period, and continuing each year thereafter, Consumers shall 

Surrender all NOx Allowances allocated to the Consumers System for that year’s compliance period that 

Consumers does not need in order to meet its own federal and/or state CAA regulatory requirements for the 

Consumers System Units. However, NOx Allowances allocated to the Consumers System may be used by 

Consumers to meet its own federal and/or state CAA regulatory requirements for such Units. (“U.S. v 

Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 103)

• Nothing in Appendix F-1: Allowance Provisions, shall prevent Consumers from purchasing or otherwise 

obtaining NOx Allowances from another source for purposes of complying with federal and/or state CAA 

regulatory requirements to the extent otherwise allowed by law. (“U.S. v Consumers Energy Company, 

Civil Action 14-13580, E.D. Mich., 2014” paragraph 104)

Super-Compliant NOx Allowances 

• Beginning with the year 2014 and continuing in each calendar year thereafter, Consumers may sell, bank, 

use, trade, or transfer NOx Allowances made available in that year’s compliance period solely as a result of: 

a. the installation and operation of any NOx pollution control that is not otherwise required by, or necessary 

to maintain compliance with, any provision of the Consent Decree as provided in this permit, and is not 

otherwise required by law; 

b. the use of SCR prior to the date established by the Consent Decree; or 

c. achievement and maintenance of an Emission Rate below a 365-Day Rolling Average Emission Rate for

NOx at the following Units: (v) at Karn Unit 1: 0.070 lb/mmBTU; (vi) at Karn Unit 2: 0.070 lb/mmBTU; 

provided that Consumers is also in compliance for that calendar year with all emission limitations for NOx set 

forth in the Consent Decree, as provided in this permit. (“U.S. v Consumers Energy Company, Civil 

Action 14-13580, E.D. Mich., 2014”paragraph 106) 

 
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Permit No. 40-15 Page 29 of 32 

Method for Surrender of NOx Allowances 

• Consumers shall Surrender, or transfer to a non-profit third-party selected by Consumers for Surrender, all 

NOx Allowances required to be Surrendered pursuant to Appendix F-1: Allowance Provisions, by June 30 of 

the immediately following calendar year. Such Surrender need not include the specific NOx Allowances that 

were allocated to Consumers System Units, so long as Consumers Surrenders NOx Allowances that are 

from the same year or an earlier year and that are equal to the number required to be Surrendered under 

the Consent Decree, as provided in this permit. (“U.S. v Consumers Energy Company, Civil Action 

14-13580, E.D. Mich., 2014” paragraph 107) 

• If any NOx Allowances required to be Surrendered under Appendix F-1: Allowance Provisions are 

transferred directly to a non-profit third-party, Consumers shall include a description of such transfer in the 

next report submitted to EPA pursuant to the Periodic Reporting provisions of the consent decree (beginning 

at paragraph 188) of the Consent Decree. Such report shall: (a) identify the non-profit third-party recipient(s) 

of the NOx Allowances and list the serial numbers of the transferred NOx Allowances; and (b) include a

certification by the third-party recipient(s) stating that the recipient(s) will not sell, trade, or otherwise 

exchange any of the NOx Allowances and will not use any of the NOx Allowances to meet any obligation 

imposed by any environmental law. No later than the third periodic report due after the transfer of any NOx 

Allowances, Consumers shall include a statement that the third-party recipient(s) Surrendered the NOx

Allowances for permanent Surrender to EPA in accordance with the provisions of Appendix F-1: Allowance

Provisions within one year after Consumers transferred the NOx Allowances to them. Consumers shall not 

have complied with the NOx Allowance Surrender requirements of Appendix F-1: Allowance Provisions until 

all third-party recipient(s) have actually Surrendered the transferred NOx Allowances to EPA. (“U.S. v 

Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 108) 

• For all NOx Allowances required to be Surrendered, Consumers or the third-party recipient(s) (as the case 

may be) shall first submit a NOx Allowance transfer request to EPA’s Office of Air and Radiation’s Clean Air 

Markets Division directing the transfer of such NOx Allowances to the EPA Enforcement Surrender Account 

or to any other EPA account that EPA may direct in writing. Such NOx Allowance transfer requests may be 

made in an electronic manner using EPA’s Clean Air Markets Division Business System or similar system 

provided by EPA. As part of submitting these transfer requests, Consumers or the third-party recipient(s) 

shall irrevocably authorize the transfer of these NOx Allowances and identify – by name of account and any 

applicable serial or other identification numbers or station names – the source and location of the NOx 

Allowances being Surrendered. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. 

Mich., 2014” paragraph 109) 

Use and Surrender of SO2 Allowances 

• Consumers shall not use SO2 Allowances to comply with any requirement of the Consent Decree, as 

enumerated in this permit, including by claiming compliance with any emission limitation required by the 

Consent Decree, as enumerated in this permit, by using, tendering, or otherwise applying SO2 Allowances 

to offset any excess emissions. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. 

Mich., 2014” paragraph 132)
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Permit No. 40-15 Page 30 of 32 

• Except as provided in Appendix F-1: Allowance Provisions, Consumers shall not sell, bank, trade, or 

transfer any SO2 Allowances allocated to the Consumers System Units. Nothing in Appendix F-1: Allowance 

Provisions, shall restrict Consumers’ ability to transfer SO2 Allowances among its own facility or general 

accounts. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014”

paragraph 133)

• Beginning with the year 2014 compliance period, and continuing each year thereafter, Consumers shall 

Surrender all SO2 Allowances allocated to the Consumers System for that year’s compliance period that 

Consumers does not need in order to meet its own federal and/or state CAA regulatory requirements for the 

Consumers System Units. However, SO2 Allowances allocated to the Consumers System Units may be 

used by Consumers to meet its own federal and/or state CAA regulatory requirements for such Units. 

(“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 2014” paragraph 134)

• Nothing in Appendix F-1: Allowance Provisions shall prevent Consumers from purchasing or otherwise 

obtaining SO2 Allowances from another source for purposes of complying with federal and/or state CAA 

regulatory requirements to the extent otherwise allowed by law. (“U.S. v Consumers Energy Company, 

Civil Action 14-13580, E.D. Mich., 2014” paragraph 135) 

Super-Compliant SO2 Allowances 

• Beginning with the year 2014 and continuing in each calendar year thereafter, Consumers may sell, bank, 

use, trade, or transfer SO2 Allowances made available in that year’s compliance period solely as a result of: 

a. the installation and operation of any SO2 pollution control that is not otherwise required by, or necessary 

to maintain compliance with, any provision of the Consent Decree, and is not otherwise required by law; 

b. the use of FGD or DSI prior to the date established by the Consent Decree; or 

c. achievement and maintenance of an Emission Rate below a 365-Day Rolling Average Emission Rate for

SO2 at the following Units: (iii) at Karn Unit 1: 0.075 lb/mmBTU, (iv) at Karn Unit 2: 0.075 lb/mmBTU; 

provided that Consumers is also in compliance for that calendar year with all emission limitations for SO2 set 

forth in the Consent Decree, as provided in this permit. (“U.S. v Consumers Energy Company, Civil 

Action 14-13580, E.D. Mich., 2014” paragraph 137)
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Permit No. 40-15 Page 31 of 32 

Method for Surrender of SO2 Allowances 

• Consumers shall Surrender, or transfer to a non-profit third party selected by Consumers for Surrender, all 

SO2 Allowances required to be Surrendered pursuant to Appendix F-1: Allowance Provisions by June 30 of 

the immediately following calendar year. Such Surrender need not include the specific SO2 Allowances that 

were allocated to Consumers System Units, so long as Consumers Surrenders SO2 Allowances that are 

from the same year or an earlier year and that are equal to the number required to be Surrendered under 

Appendix F-1: Allowance Provisions. (“U.S. v Consumers Energy Company, Civil Action 14-13580, 

E.D. Mich., 2014” paragraph 138)

• If any SO2 Allowances required to be Surrendered under Appendix F-1: Allowance Provisions are 

transferred directly to a non-profit third party, Consumers shall include a description of such transfer in the 

next report submitted to EPA pursuant to the Periodic Reporting provisions of the Consent Decree 

(beginning at paragraph 188 of the Consent Decree). Such report shall: (a) identify the non-profit third party 

recipient(s) of the SO2 Allowances and list the serial numbers of the transferred SO2 Allowances; and (b) 

include a certification by the non-profit third party recipient(s) stating that the recipient(s) will not sell, trade, 

or otherwise exchange any of the allowances and will not use any of the SO2 Allowances to meet any 

obligation imposed by any environmental law. No later than the third periodic report due after the transfer of 

any SO2 Allowances, Consumers shall include a statement that the non-profit third party recipient(s) 

Surrendered the SO2 Allowances for permanent Surrender to EPA in accordance with the provisions of 

Appendix F-1: Allowance Provisions within one year after Consumers transferred the SO2 Allowances to 

them. Consumers shall not have complied with the SO2 Allowance Surrender requirements of Appendix F-1: 

Allowance Provisions until all third party recipient(s) have actually Surrendered the transferred SO2

Allowances to EPA. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. Mich., 

2014” paragraph 139)

• For all SO2 Allowances required to be Surrendered, Consumers or the third party recipient(s) (as the case 

may be) shall first submit an SO2 Allowance transfer request to EPA’s Office of Air and Radiation’s Clean Air 

Markets Division directing the transfer of such SO2 Allowances to the EPA Enforcement Surrender Account 

or to any other EPA account that EPA may direct in writing. Such SO2 Allowance transfer requests may be 

made in an electronic manner using EPA’s Clean Air Markets Division Business System or similar system 

provided by EPA. As part of submitting these transfer requests, Consumers or the third party recipient(s) 

shall irrevocably authorize the transfer of these SO2 Allowances and identify – by name of account and any 

applicable serial or other identification numbers or station names – the source and location of the SO2

Allowances being Surrendered. (“U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. 

Mich., 2014” paragraph 140)

 
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Permit No. 40-15 Page 32 of 32 

Appendix G-1: Optimization of Baghouses 

Consumers shall: 

a) At a minimum, to the extent practicable: (i) operate each compartment of the Baghouse as designed for Full 

Stream Operation for each Unit, where applicable (regardless of whether those actions are needed to 

comply with opacity limits); (ii) maintain and replace bags on each Baghouse as needed to maximize 

collection efficiency, where applicable; and 

b) during the next planned Unit outage (or unplanned outage of sufficient length), optimize the PM controls on 

that Unit by inspecting for and repairing any failed Baghouse compartment. 

The above requirements are found in “U.S. v Consumers Energy Company, Civil Action 14-13580, E.D. 

Mich., 2014” paragraph 141.