1 Technical Support Document (TSD) for the final Transport Rule

Docket ID No. EPA

- HQ

- OAR

- 2009

- 0491

Acid Rain Program NO X Averaging Plans Final Rule TSD

U.S. Environmental Protection Agency

Office of Air and Radiation

June 20112 Acid Rain Program NO X Averaging Plans Final Rule TSD

This Technical Support Document (TSD) provides information on owners’ and operators’ use of common designated representatives for purposes of complying with emissions limitations in the Acid Rain Program, particularly in circumstances involving multiple owners and operators and multiple sources.

Under 40 CFR part 76 of the Acid Rain Program regulations, certain units (specifi cally, coal

- fired

boilers of certain types) are subject to individual NO X emissions limitations expressed in

lb/mmBtu. In lieu of unit

- level compliance with individual NO X emissions limitations, owners and operators may elect under ' 76.11 to submit a comp liance plan in which a group of such units

, which the owners and operators select, must meet a group NO X emissions limitation

, rather than

individual NO X emissions limitations for each unit. Such compliance plans are referred to as Acid Rain Program NO X a veraging plans ( NO X averaging plans). Under such NO X averaging plans, the Btu

- weighted annual averag e emission rate for all the units in the plan must be less than or equal to the Btu

- weighted annual average emission rate for the same units had they each been operated, during the same period of time, in compliance with their applicable individual NO X emissions limitation under ' ' 76.5, 76.6, or 76.7 ( see 40 CFR 76.11(a)(5)).

A NO X ave raging plans gives owners and operators greater flexibility to comply wit h Acid Rain Program NO X requirements. Units that might have difficulty meeting their individual NO X emissions limitations can be grouped with units that are operating , or can more easily operate,

below their individual NO X emissions limitations. As long as the annual average group NO X rate is at or below the annual average group NO X emissions limitation , each unit in the averaging plan is deemed to be in compliance with its individual NO X emissions limit ation , even if a unit operated

above i ts individual NO X emissions limitation under ' ' 76.5, 76.6, or 76.7.

Among the requirements that an averaging plan must meet under ' 76.11 is that all of the units in a
specific NO X averaging plan must be under the control of the same owner and operator (e.g., have

the s ame majority owner or the same operator) and must have a common designated representative ( see 40 CFR 76.11(a)). The three averaging plans described below (and attached , along with the applicable EPA Source Management System printout identifying the owner s and operators, to this TSD) are examples of averaging plans that were in effect under the Acid Rain Program for calendar year 2010.

San Juan Averaging Plan (Plant Code 2451), New Mexico

, Signature Date: July 23, 2010.

One approach that owners and opera tors take in designing NO X averaging plans is to group the units at a specific source ( facility ) into one NO X averaging plan. Such is the case for plan for the

San Juan facility , in which all four units at the facility are covered for calendar years 2010 through

2014. 1 Note that the four units in the NO X averaging plan have the same individual as the

1 The referenced NO X averaging plan is the most current plan submitted for inclusion in the3

designated representative (i.e., Gregory D. Smith, who is the common designated representative),

as reflected in the NO X averaging plan, and are owned by nine separate owners and operated by one owner/operator

, as reflected in the EPA Source Management System printout dated June 27,

2011.

Each source, and all units at the source, must have one designated representative, who makes

, signs, and certifies all submissions to EPA or the permitting authority under the Acid Rain Program concerning any of the affected units at the source. See 40 CFR 72.20(a)). The designated representative for a source, or group of sources, is designated through submission to
EPA, by the individual selected by the owners and operators, of a c ertificate of r epresentation

. See 40 CFR 72.20(b). While in order to participate in a single NO X averaging plan a group of units must be under the control of the same owner or operator as wel l as having a common designated representative , a group of units can have a common designated representative

, for purposes other than participation in a NO X averaging plan

, whether or not they are controlled by the same owner or operator. A certificate of representation includes, among other things,

information on the identification of the source s involved

, the affected units at each such source, the owners and operators of each such unit and source, and the individual who is selected as the designated rep resentative and authorized to submit, s ign

, and certify each submission under the Acid Rain Program. S ee 40 CFR 72.24 (a)

. The responsibilities, and requirements for designating an individual as the designated representative are analogous under the Acid Rain Program and the Transport Rule trading programs.

J.H. Campbell (et al.) Averaging Plan (Plant Code 1710), Michigan

, Signature Date: June 20, 2007.

Another approach that owners and operators take in designing NO X averaging plans is to group units from multiple sources into one NO X averaging plan. Such is the case for the NO X averaging plan covering units at the J.H. Campbell facility, which also covers 19 units at the B.C. Cobb, Dan E. Karn, J.C. Weadock, and J.R. Whiting facilities

, for calendar years 2007 through 2011. 2 Note

that the 15 units at five sources in the NO X averaging plan have the same individual as the designated representative (i.e., James R. Coddington, who is the common designated representative), as reflected in the NO X averaging plan, and are owned by 13 separate owners and operated by one owner/operator, as reflected in the EPA Source Management S ystem printout s dated June 27, 2011.

Rockport (et al.) Averaging Plan (Plant Code 6166), Indiana

, Signature Date: December 19,

renew al of the permit covering San Juan. The same four units have been in identically configured

NO X averaging plans since 2000, when the units first became subject to Acid Rain Progra m NO X emissions limitations.

2 The referenced NO X averaging plan is the most current plan submitted for inclusion in the

renewal of the permits covering J.H. Campbell and the other facilities identified in this plan. The

same 15 units have been in identic ally configured averaging plans since 2001.4

2007

.

This is another example of the approach that owners and operators take in designing NO X averaging pla ns of group ing units from multiple sources in to one NO X averaging plan. This NO X averaging plan covering units at the Rockport facility covers 53 units at 21 facilities in eight states.

Note that the 53 units at the 21 facilities in averaging plan have the same indivi dual as the designated representative (i.e., John M. McManus, who is the common designated representative),

as reflected in the NO X averaging plan, and are owned by nine separate owners and operated by eight owner/operators that are wholly owned subsidiari es of American Electric Power Company

, 3
as reflected in the EPA Source Management System printouts dated June 27, 2011.

3 In tabulating the number of different owners whose units are covered by the referenced NO X averaging plan, the companies (and their subsidiaries, if any) that are directly or indirectly owned by American Electr ic Power Company , Inc. ( i.e., Appalachian Power Company, Central Operating Company, Columbus Southern Power Company , Indiana Michigan Power Company , Kentucky

Power Company

, Ohio Power Company, Public Service Company of Oklahoma, Southwestern

Electric Power Company , and West Texas Utilities Company) were c ounted as a single owner.

The eight other owners (Arkansas Electric Cooperative Corp oration , City of Brownsville, Buckeye Power, Inc., Central Power and Light Company, Cincinnati Gas & Electric Power

Co mpa ny , Dayton Power and Light Co mpany , Northeast Texas Electric Cooperative, and Oklahoma Municipal Power Authority) are not owned by A merican Electric Power Company, Inc.