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# OAR Box 1778 Prepped by Ollie Stewart



### Document

Number: 

# 56 ) ll-B-3 1 Docket Number: 

# A-90-06

Printed 10/28/20089:50:54

AM Sheet 56 of 276P. 2

sx^^ ^ UNITE D STATE S ENVIRONMENTA LPROTECTIO NAGENCY

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# © V(f$ U - V

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MEMORANDU

M SUBJECT : PS D Applicabilit yDetermination-Southwester nPubli c

Servic eCompan y FROM :

TO ; Director , Stationar ySourc eComplianc eDivisio n

Offic eo f

Ai r Qualit yPlannin g an dStandard s \ Actin g Associat eGenera lCounse l Air , Nois ean dRadiatio nDivisio n Ally nM . Davis , Directo r Ai r an dWast eManagemen t Division , Regio nV I Pau lSeal s Regiona l Counsel , Regio n V I Thi s i s i n respons e t o you r memorandumdate d Februar y18 , 1983 concernin g th e applicabilit yo f PS D t o th e Southwester n Publi c Servic e Company' s (SPS ) steamelectri c generatin g statio n i n Amarillo , Texas . SP S operate s a coal-fire d steamgeneratin g uni t subjec t t o th e NSP S requirement s o f 4 0 CF P 6 0 Subpar t D . SP S i s proposin g t o modify.it s existin g ai r pollutio ncontro l syste m whic hconsist s o f tw o electrostati c precipitator s (ESP ) wit h9 5 percen t contro l efficienc yo f particulat e matte r followe d b ysi xwe t scrubber s whic hremov e enoug ho f th e remainin g parti

culat e matte r t o compl ywit hth e particulat e matte r emissio n standar d o f th e NSPS . Th e scrubber s als o provid e a significan t effec t o n th e SO 2 emission s b yreducin g thei r amount s b yapproxi

matel y4 0 percent . Thes e scrubbers , however , ar e no t necessar y i n orde r fo r SP S t o compl ywit hth e S0 2 requirement s o f th e NSPS . Th e contro l alternativ e SP S ha s selecte d fo r thi s purpos e i s lo wsulfu r coal . / Th e modificatio ntha t SP S i s proposin g i s th e remova l o f th e scrubber s and an upgradin g o f thei r ES P whic hwil l maintai n thei r presen t leve l o f complianc e wit hth e particulat e matte r NSPS . However , remova l o f thes e scrubber s wil l resul t i na n approximat e increas e o f 440 0 ton s pe r yea r o f SO2 . Th e questio n yo u rais e the nis , doe s thi s modificatio no f th e contro l sytem c o 

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* previousl yi t ha s bee ndetermine d tha t thi s chang e woul d ( no t constitut e a rodificstio n unde r th e NSP S program . Th e NSP S regulation s a t 4 0 CF R60.14(e ) contai na lis t whic hexempt s certai n change s fromconsideratio n a s modifications . Include d i n thi s lis t i s th e provisio na t 4 0 CF R60.14te' ) (5 ) whic hstates :

"Th e additio n o r us e o f an ysyste mo r devic e whos e primar yfunctio ni s th e reductio no f ai r pollutant s excep t whe n a n emissio ncontro l syste mi s remove d o r i s replace d b ya syste m whic hth e Administrato r determine s t o b e les s environmentall ybeneficial. " Unde r thi s provisio n i t wa s determine d tha t SPS * propose d modificatio n woul d no t b e les s environmentall ybeneficia l fo r NSP S purpose s sinc e th e chang e contejnplated b ySP S woul d stil l resul t i n complianc e wit hth e NSP S fo r bot hparticulat e matte r an d SO2 . Th e separat e questio no f PS D applicabilit yarise s becaus e th e PS D modificatio n provision s d o no t specificall ycontai na n exemptio nsuc ha s tha t e t §60.14(e)(5) . Afte r consultatio nwit h th e Offic e o f Genera l Counsel , w e bot hagre e wit hth e rational e presente d b

yth e Texa s Ai r Contro l Boar d (TACB ) i nthei r Januar y 21 , 198 3 lette r t o Dic k Whittington . TAC E believe s tha t sinc e th e NSP S regulation s provid e an exemptio nfro mth e modificatio n( provision s fo r replacemen t o f contro l equipment , th e PS D regula
tion s mus t provid e thi s exemptio n a s well . Thi s i s becaus e th e Clea n Ai r Ac t provide s i n Sectio n 16 9 (1 ) (c ) tha t fo r PS D purpose s th e termmodificatio n shal l b e define d a s tha t termi s define d i n Sectio n 11 1 (a ) o f th e Ac t relatin g t o KSPS . EP Aha s interprete d thi s t o mea n tha t fo r PS D purpose s Congres s intende d th e termmodificatio n t o includ e al l exemption s include d i nth e NSP S regulation s promulgate d unde r Sectio n11 1 o f th e Ac t prio r t o th e dat e o f enactmen t o f Sectio nf69 . Se e 4 3 FR26396 . Th e contro l equipmen t exemptio n wa s promulgate d prio r t o Sectio n 169 . Therefore , th e termmodificatio ni nth e PS D regulation s inherentl yencompasse s th e contro l equipmen t exemption . I wis ht o add , however , tha t jus t becaus e i t wa s determine d tha t th e chang e wa s no t les s environmentall ybeneficia l unde r th e NSP S progra m

doe s no t mea nth e same conclusio nmus t b e draw n wit hregar d t o PSD . Unde r th e PS D programth e concer ni s no t solel yth e applicatio n o f bes t technology , bi/t als o impact s o n ai r qualit yfrom

industria l growth . Th e Regio nand Stat e mus t evaluat e thi s situatio n t o ensur e ther e wil l be n o advers e ai r qualit yimpac t befor e concludin g tha t th e contro l equipmen t replacemen t wil l no t "b e les s environmentall ybeneficial . I f thi s determinatio n ca n b e made , th e SP S generatin g statio ni nAmarill o ma yb e exempte d fromPS D a s a majo r modification .P. 4

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I f yo uhav ean yadditiona lquestion s o r conirient s concernin g thi s response , pleas econtac t Ric hBiond io f

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382-283 1 o r Sar aSchheeber ao f OG C a t 382-7730 .

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