Mr. Ron Curry 

Regional Administrator 

United States Environmental Protection Agency, Region 6 

1445 Ross Avenue, Suite 1200 

Dallas, Texas 75202-2733 

Dear Administrator Curry: 

This letter is in response to EPA's Febmary 11, 2016, communication stating, inter alia, 

EPA's intention to designate a portion of Muskogee County as nonattainment for the 2010 Sulfur 

Dioxide ("S02") National Ambient Air Quality Standard ("NAAQS"). The State of Oklahoma 

respectfully requests EPA reconsider its intended designation of a portion of Muskogee County 

as being a nonattainment area. In particular, EPA is not required to designate said portion of 

Muskogee County at this time, due to Oklahoma Gas and Electric's ("OG&E") Muskogee 

Generating Station having satisfied criteria which exempts it from this round of designations 

pursuant to the Consent Decree ("CD") at issue1 (i.e., having "announced for retirement" certain 

units). Instead, the Muskogee Generating Station should be included in a subsequent designation 

round under EPA's Data Requirements Rule ("DRR"),2 and Muskogee County should be 

designated at a later date. The State of Oklahoma appreciates the oppmtunity to provide 

supplemental information to EPA, and respectfully requests EPA reconsider its intended 

designation of a pmtion of Muskogee County. 

Background 

On March 2, 2015, EPA and Sierra Club entered into the aforementioned CD which 

required EPA to designate cetiain areas by July 2, 2016 under the 2010 S02 NAAQS. Pursuant 

to paragraph 1 (b) of the CD, areas must be designated which contain any stationary source that 

was not announced for retirement by the date ofthe CD and either (1) emitted more than 16,000 

tons of so2 in 2012 or (2) emitted more than 2,600 tons of so2 and had an annual average 

emission rate of 0.45 lbs S02/Mmbtu or higher in 2012. Pursuant to paragraph 1 (c) of the CD, 

"announced for retirement" means: 

1 Consent Decree, Sierra Club v. McCarthy, Case No.: 3-13-cv-3953-SI (N.D. Cal. 2015) 

2 80 Fed. Reg. 51052 (Aug. 21, 2015). 

STATE CAI'ITOL BUILDING • 2300 N. LINCOLN BOULEVARD, SUITE 212 • OKLAHOMA CITY. OKLAHOMA 73105 • (405) 521-2342 • FAX: (405) 521-3353 
Further, paragraph 7 of the CD ensures there is no limitation on the discretion afforded EPA 

under the CD to reconsider its decision-making, "including the discretion to alter, amend or 

revise any response and/or final action contemplated by this [CD]." 

On August 21, 2015, the final DRR was published in the Federal Register.3 It established 

a timeline for designating areas of the country which remain undesignated after EPA's 

designations pursuant to the CD in July 2016. In particular, it sets forth criteria for determining 

which areas must be designated and a pathway for designating areas surrounding applicable 

sources based on either modeling or monitoring. For areas which are to be monitored for 

attainment demonstrations, air agencies must submit annual monitoring plans by July I, 2016 and monitors must be operational by January 1, 2017. 

On March 20, 2015, EPA issued a letter to the State of Oklahoma setting fortb the 

facilities identified by EPA as meeting the criteria under the CD, which included the Muskogee 

Generating Station. At that time, the State of Oklahoma did not argue that the Muskogee 

Generating Station was exempt from the CD due to a misinterpretation of the definition of 

"announced for retirement," which was based in part on various discussions among EPA and 

Oklahoma Department of Environmental Quality ("ODEQ") staff. On August 17, 2015, the State 

of Oklahoma submitted its recommendations to EPA for designating areas surrounding those 

facilities identified by EPA to be affected by the CD. Oklahoma recommended a designation of 

unclassifiable for the area surrounding the Muskogee Generating Station, but pointed out 

OG&E's armouncement for retirement of Units 4 and 5. On February 11, 2016, EPA sent a letter 

to the State of Oklahoma stating it intends to designate a portion of Muskogee County as being 

in nonattainment due to emissions from the Muskogee Generating Station. 

Muskogee Generating Station is Exempt from the CD 

EPA is not required at this time to designate the area in Muskogee County surrounding 

the Muskogee Generating Station because said facility is exempt from the CD due to having 

armounced for retirement two of the three units at the facility. OG&E announced for retirement 

Units 4 and 5 at the Muskogee Generating Station within the meaning and prior to the date of the 

CD. In particular, OG&E announced said units for retirement in its August 2014 10-Q filing with 

the Securities Exchange Commission, stating therein its "environmental compliance plan 

3 Id 
Information Supporting the Designation Recommendations for Oklahoma. 7 

OG&E's aforementioned announcements were made prior to the CD and constitute "a 

company public announcement, public utilities commission filing, consent decree, public legal 

settlement, fmal state or federal permit filing, or other similar means of communication," as 

required by paragraph l(c) of the CD. Thus, the State of Oklahoma respectfully requests that 

EPA recognize Muskogee Generating Station as being exempt from the current round of 

designations pursuant to the CD and refrain from designating any portion of Muskogee County at 

this time. Instead, the State of Oklahoma requests that the Muskogee Generating Station be 

designated at a later time pursuant to the DRR. In particular, ODEQ intends to relocate the 

existing ambient air S02 monitor and evaluate the area using monitoring data acquired pursuant 

to the DRR and the monitoring TAD. 

The State of Oklahoma stands by its original recommendation, but wishes to emphasize 

the fact that the Muskogee Generating Station should not have been included in this round of 

designations in the first place. Facts and circumstances surrounding the Muskogee Generating 

Station have not changed since the State of Oklahoma's submittal of its designation 

recommendation and technical suppmt documents. However, it has become clear to the State that 

inclusion of the facility within the list of affected sources under the CD was erroneous and/or 

based on a misinterpretation of the CD. 

Other Sources of in the Area 

In addition to the future significant reductions of so2 in the area due to retirements at 

OG&E, another major sow-ce of S02 near OG&E will be drastically reducing its emissions. 

Georgia Pacific, an S02 source within Muskogee County and contdbuting to emissions in the 

portion of the county at issue, has stated to ODEQ that it will replace one of its three existing 

4 See Oklahoma Gas and Electric Quarterly Report (Form 10-Q) (Aug. 7, 2014). OG&E's SEC filings are available 

at: http://phx.corporate-ir.net/phoenix.zhtrn l?c= I 06374&p=irol-sec 

5 See Oklahoma Gas and Electric, Integrated Resource Plan- 2014 Update (Aug. 6, 2014). OG&E's OCC filings are 

available at: http://phx.comorate-ir.netlphoenix.zhtrnl?c=l06374&o=irol-utilityreg 

6 See Direct Testimony of Usha-Maria Turner before the Oklahoma Corporation Commission (Aug. 6, 20 14). Copy 

available at: http://imaging.occeweb.corn/ AP/CaseFiles/occ5129575.pdf 

7 See Introduction and Summary, page 5 (Stating "OG&E Muskogee Generating Station is subject to a Federal 

Implementation Plan (FIP) ( 40 CFR § 52. I 923), which requires Units 4 and 5 to meet a S02 emission limit of 0.06 

lb/MMBTU by January 4, 2019. OG&E has committed to meet the federal BART limit by conversion of Unit 4 and 

Unit 5 to natural gas."). 
rationale for excluding the Muskogee Generating Station from the CD, DEQ's monitor 

relocation will provide EPA the necessary monitored data to more appropriately evaluate the 

area under the DRR. 

Conclusion 

Because OG&E announced for retirement Units 4 and 5 at the Muskogee Generating 

Station within the meaning and timeframe established by the CD, and is therefore exempt from 

the CD, the State of Oklahoma respectfully requests that EPA reconsider its decision to designate 

a portion of Muskogee County at this time and instead designate the area later pursuant to the 

clearly applicable timeline in the DRR. Further, it is of note that the area's major sources of S02 

are currently in the process of retiring a total of three coal-fired units, which will result in 

extremely significant reductions of so2 in the area. 

Sincerely, A 

Mary Fallin 

Governor