BILL RICHARDSON Governor 

### State of New Mexico 

### ENVIRONMENT DEPARTMENT Air Quality Bureau

2048 Galisteo St. Santa Fe, NM 87505 Phone (505) 827-1494

Fax (505) 827-1523

www.nmenv.state.nm.us RON CURRY Secretary

CINDY PADILLA Deputy Secretary

CERTIFIED MAIL NO: 7004 0750 0001 3312 7004 RETURN RECEIPT REQUESTED

OPERATING PERMIT NO: P062R1M1 TEMPO/IDEA ID NO.: 1421 – PRT20060001 AIRS No. 35-045-00902 FACILITY NAME: San Juan Generating Station

FACILITY OWNERS:

Unit 1: Public Service Company of New Mexico; Tucson Electric Power Unit 2: Public Service Company of New Mexico; Tucson Electric Power Unit 3: Public Service Company of New Mexico; Southern California Public Power Authority; Tri-State Generation and Transmission Association, Inc. Unit 4: Public Service Company of New Mexico; Utah Associated Municipal Power Systems; City of Farmington, New Me xico; M-S-R Public Power Authority; City of Anaheim, California; Los Alamos County, New Mexico

FACILITY OPERATOR/PERMITTEE: Public Service Company of New Mexico (PNM) 2401 Aztec Road NE Albuquerque, NM 87107

RESPONSIBLE COMPANY OFFICIAL: Russell Huffman, Plant Manager

ISSUED BY: New Mexico Environment Department

June 11, 2007 Mary Uhl Date of Issuance Air Quality Bureau Chief

INTRODUCTION

Operating Permit Number P062R1M1 is issued by the Air Quality Bureau of the New Mexico Environment Department ("Department") to Pub lic Service Company of New Mexico (“permittee”)Operating Permit No. P062R1M1 Page 2 of 42

pursuant to the federal Clean Air Act ("federal Act"), the New Mexico Air Quality Control Act ("state Act") and regulations adopted pursuant to the state and federal Ac ts, including Title 20, New Mexico Administrative Code, Chapter 2, Part 70 (20.2.70 NMAC) - Operating Permits . This permit authorizes the operation of this facility lo cated at UTM Zone 12, UTMH 728.5 km, UTMV 4075.6 km, approximately 3 miles north-northeast of Waterflow, New Mexico in San Juan County.

This facility consists of four co al-fired electric generating units and associated support facilities. Each coal-fired unit burns pulverized coal and No. 2 Diesel oil in a boiler and produces highpressure steam which powers a steam turbine coupled with an electrical generator. Electrical power produced by the units is supplied to the electric power grid for sale. Coal for the units is supplied by the adjacent San Juan Mine and is delivered to the facility by conveyor. For the purposes of this permit, the four generating units at San Juan Generating Station are designated Unit 1, Unit 2, Unit 3, and Unit 4.

This modification consists of raising the carbon monoxide (CO) emissions limits for Boiler Units 1-4 to reflect the results of recent stack testing as allowed by NSR Permit 0063M3.

This permit P062R1M1 supersedes permit P062R1 , and will expire February 04, 2010, pursuant to 20.2.70.302.B NMAC. Application for renewal of this perm it is due twelve (12) months prior to the date of expiration, pursuant to 20.2.70.300.B.2 NMAC.

Pursuant to 20.2.70.302.A.1 NMAC, the Department specifi es with this permit, terms and conditions upon the operation of this facility to assure complian ce with all applicable requirements, as defined in 20.2.70 NMAC at the time this permit is issued or as specified in the schedule of compliance contained herein.

Pursuant to the New Mexico Air Quality Control Act NMSA 1978, Chapter 74, Article 2, all terms and conditions in this permit, including any provisions designed to limit this facility's potential to emit, are enforceable by the Department. Pursuant to 20.2.70.302.A.5 NMAC, all terms and conditions are enforceable by the Administrator of the United States Environmental Protection Agency ("EPA") and citizens under the federal Act, unless the term or condition is specifically designated in this permit as not being enforceable under the federal Act.

PERMIT SHIELD

Pursuant to 20.2.70.302.J NMAC, compliance with the c onditions of this permit shall be deemed to be compliance with any applicable requirements existing as of the date of permit issuance and identified in Table A.1 of Appendix A. The requireme nts in Table A.1 are applicable to this facility with specific requirements identified for individual emission units.

The Department has determined that the requirements in Table A.2 of Appendix A as identified in the permit application are not applicable to this source, or they do not impose any conditions in this permit.Operating Permit No. P062R1M1 Page 3 of 42

This permit shield does not extend to administrativ e amendments, to minor permit modifications, to changes made under Section 502(b)(10) of the federa l Act, or to permit terms for which notice has been given to reopen or revoke all or part.

TOTAL POTENTIAL EMISSIONS

The total potential emissions from this facility, ex cluding insignificant or trivial activities, are shown in the following table. Emission limitations for individual units are shown in Condition 3.2.

Table 1, Total Potential Criteria Pollutant Emissions from Entire Facility*:

Pollutant Emissions (tons per year)

Sulfur Dioxide (SO 2 ) 35,756.8

Nitrogen Oxides (NOx) 38,799.7

PM-10 4,201.9

Total Suspended Particulate (TSP; Includes PM-10) 4,494.1

Carbon Monoxide (CO) 39,427.7

Volatile Organic Compounds (VOC) 250.14
* for information only, not an enforceable condition

Table 2, Total Potential HAPS that exceed 0.5 ton per Year*:

Pollutant Emissions (tons per year)

Benzene 0.6

Manganese (Mn) 0.74

Hydrochloric Acid (HCl) 17.4

Hydrogen Fluoride (HF) 54.1

Total Hazardous Air Pollutants (HAPs) 74.6
* for information only, not an enforceable conditionOperating Permit No. P062R1M1 Page 4 of 42

PERMIT TERMS AND CONDITIONS

1.0 GENERAL CONDITIONS 1.1 The following permit terms and conditions ar e placed upon the permittee in accordance with 20.2.70.301.B NMAC and 20.2.70.302.A.2 NMAC.

1.1.1 The permittee shall abide by all terms and cond itions of this permit, except as allowed under Section 502(b)(10) of the federal Act, a nd 20.2.70.302.H.1 NMAC. Any permit noncompliance is grounds for enforcement action, and significant or repetitious noncompliance may result in termination of this permit. Additionally, noncomp liance with federally enforceable conditions of this permit constitutes a violation of the federal Act.

1.1.2 It shall not be a defense for the permittee in an enforcement action to claim that it would have been necessary to halt or reduce the permitted activ ity in order to maintain compliance with the conditions of this permit.

1.1.3 If the Department determines that cause exists to modify, reopen and revise, revoke and reissue, or terminate this permit, this shall be done in accordance with 20.2.70.405 NMAC.

1.1.4 The permittee shall furnish any information the Department requests in writing to determine if cause exists for reopening and revising, revoking and reissuing, or terminating the permit, or to determine compliance with the permit. This info rmation shall be furnished within the time period specified by the Department. Additionally, the permittee shall furnish, upon request by the Department, copies of records required by the permit to be maintained by the permittee.

1.1.5 A request by the permittee that this permit be modified, revoked and reissued, or terminated, or a notification by the permittee of planned change s or anticipated noncompliance, shall not stay any conditions of this permit.

1.1.6 This permit does not convey property rights of any sort, or any exclusive privilege.

1.1.7 In the case where an applicant or permittee has submitted information to the Department under a claim of confidentiality, the Department may also require the applicant or permittee to submit a copy of such information directly to the Administrator of the EPA.

1.2 The issuance of this permit, or the filing or approval of a compliance plan, does not relieve the permittee from civil or criminal liability for failure to comply with the state or federal Acts, or any applicable state or federal regulation or la w. This condition is pursuant to 20.2.70.302.A.6 NMAC and the New Mexico Air Quality Control Act NMSA 1978, Chapter 74, Article 2.

1.3 If any part of this permit is challenged or held invalid, the remainder of the permit terms and conditions are not affected and the permittee shall continue to abide by them. This condition is pursuant to 20.2.70.302.A.1.d NMAC.Operating Permit No. P062R1M1 Page 5 of 42

1.4 The permittee shall pay fees to the Department consistent with the fee schedule in 20.2.71 NMAC - Operating Permit Emission Fees . The fees will be assessed and invoiced separately from this permit. This condition is pursuant to 20.2.70.302.A.1.e NMAC.

1.5 A responsible official (as defined in 20.2.70 NMAC) shall certify the accuracy, truth and completeness of every report and compliance certific ation submitted to the Department as required by this permit. These certifications shall be part of each document. This condition is pursuant to 20.2.70.300.E NMAC.

1.6 Revocation or termination of this permit by th e Department terminates the permittee's right to operate this facility. This condition is pursuant to 20.2.70.201.B NMAC.

1.7 The permittee shall submit an emissions inve ntory for this facility annually. The emissions inventory shall be submitted by the later of April 1 or within 90 days after the Department makes such request. This condition is pursuant to 20.2.73 NMAC and 20.2.70.302.A.1 NMAC.

1.8 The source will continue to comply with a ll applicable requirements. For applicable requirements that will become effective during the term of the permit, the source will meet such requirements on a timely basis. This condition is pursuant to sections 300.D.11.c and 302.G.3 of 20.2.70 NMAC.

1.9 Compliance with this operating permit is suffici ent to comply with all NSR permits listed in Table A.1. This condition is pursuant to 20.2.70.302.A.1 NMAC.

1.10 For the purposes of this permit, the term “particulate matter” shall have the meaning assigned to it in 40 CFR 60.2, except that when that term is used in reference to requirements arising from 20.2.14 NMAC the applicable measurement met hod to which the term refers shall be the measurement method specified in this permit. Fo r the purposes of this permit “PM” shall mean particulate matter, and the terms “total suspended particulate”, “TSP” and “PM-10” shall take the meanings given at 20.2.2.7 NMAC. The term “PM-2” shall mean particulate matter with an equivalent aerodynamic diameter of less than 2 mi crons as measured by the methods specified in 20.2.14.300 and 400 NMAC. This condition is pursuant to 20.2.70.302.A(1)(a) NMAC.

2.0 FACILITY INFORMATION

2.1 Conditions 2.1 through 2.3 are imposed on the permittee pursuant to 20.2.70.302.A.7 NMAC and NSR Permits No. 63-M2 and M3.

2.2 Process Equipment: Only the process equipment liste d in Table 2.2.1 and Table 2.2.2 below is authorized for this facility. Emission units that were identified as insignificant or trivial, and equipment not regulated pursuant to the Act, are not included.Operating Permit No. P062R1M1 Page 6 of 42

Table 2.2.1, Authorized Boiler Emission Units

Emission Unit No. Generating Unit No. Equipment Type and Description Equipment Manufacturer & Model Number

E301 Unit 1 3497 MMBtu/hr Coal-Fired Boiler Foster-Wheeler 08-1266

E302 Unit 2 3479 MMBtu/hr Coal-Fired Boiler Foster-Wheeler 08-969

E303 Unit 3 5432 MMBtu/hr Coal-Fired Boiler Babcock & Wilcox RB-544

E304 Unit 4 5329 MMBtu/hr Coal-Fired Boiler Babcock & Wilcox RB-545

E501 Unit 1 Duct Leaks N/A

E502 Unit 2 Duct Leaks N/A

E503 Unit 3 Duct Leaks N/A

E504 Unit 4 Duct Leaks N/A

Table 2.2.2, Authorized Non-Boiler Emission Units

Emission Unit No. Generating Unit No. Equipment Type and Description Equipment Manufacturer & Model Number

E101 Plant-Wide Coal Pile Maintenance w / Front-End Loader N/A

E102 Plant-Wide Coal Pile Maintenance w / Front-End Loader N/A

E103 Plant-Wide Coal Pile Maintenance w / Front-End Loader N/A

E104 Plant-Wide Coal Pile Maintenance w / Front-End Loader N/A

E201 Plant-Wide Coal Pulverizers N/A

E406 Unit 1 Cooling Tower N/A

E407 Unit 2 Cooling Tower N/A

E408 Unit 3 Cooling Tower N/A

E409 Unit 4 Cooling Tower N/AOperating Permit No. P062R1M1 Page 7 of 42

Emission Unit No. Generating Unit No. Equipment Type and Description Equipment Manufacturer & Model Number
E410 Plant-Wide Auxiliary Cooling Tower #1 N/A

E411 Plant-Wide Auxiliary Cooling Tower #2 N/A

E505 Unit 3 Fly Ash Silo Loading N/A

E506 Unit 4 Fly Ash Silo Loading N/A

E507 Unit 1 Fly Ash Silo Unloading to Trucks N/A

E508 Unit 2 Fly Ash Silo Unloading to Trucks N/A

E509 Unit 3 Fly Ash Silo Unloading to Trucks N/A

E510 Unit 4 Fly Ash Silo Unloading to Trucks N/A

E601 Unit 1, 2 Fuel Oil Piping Leaks N/A

E602 Unit 1 635 BHP Emergency Generator Waukesha VC1700DS

E603 Unit 2 635 BHP Emergency Generator Cummins-Rio Grande

E604 Unit 3 1420 BHP Emergency Generator Detroit Diesel 9163-7305

E605 Unit 4 1420 BHP Emergency Generator Detroit Diesel 9163-7305

E606 Plant-Wide 350 BHP Emergency Generator (Switchyard) Cummins Rio-Grande NT-855-G

E701 Plant-Wide Paved Road Traffic (All Except Front-End Loaders) N/A

E702 Plant-Wide Unpaved Road Traffic (Light Vehicles) N/A

E703 Plant-Wide Unpaved Road Traffic (Ash Hauling) N/A

E704 Plant-Wide Front-End Loader (Coal Piles) N/A

E705 Plant-Wide Paved Road Traffic (Limestone Delivery) N/AOperating Permit No. P062R1M1 Page 8 of 42

Emission Unit No. Generating Unit No. Equipment Type and Description Equipment Manufacturer & Model Number

E706 Plant-Wide Unpaved Road Traffic (Gypsum Hauling) N/A

E707 Plant-Wide Gypsum Pile Traffic (Front-End Loader) N/A

E801 Plant-Wide Limestone Delivery Truck Unloading N/A

E802 Plant-Wide Limestone Pile Maintenance N/A

E803 Plant-Wide Limestone Silo Loading N/A

E804 Plant-Wide Limestone Hopper to Transfer Conveyor N/A

E805 Plant-Wide Limestone Silo to Weigh Belt to Ball Mill + Crushing N/A

2.3 Pollution Control Equipment : The pollution control equipment listed in Table 2.3.1 and Table 2.3.2 below is required for this facility. Each emission point is identified by the same number that was assigned to it in the permit application.

Table 2.3.1, Required Control Equipment for Boiler Emission Units

Emission Unit No. Control Equipment No. Control Equipment Type and Description Control Equipment Manufacturer & Model Number
E301 C08 Electrostatic Precipitator (ESP) Joy Manufacturing Company

E301 C09 Limestone Forced Oxidation (LSFO) Scrubber Babcock & Wilcox
E301, E501 EJMP Expansion Joint Maintenance Program (EJMP) for Duct Leaks N/A

E302 C10 Electrostatic Precipitator (ESP) Joy Manufacturing Company

E302 C11 Limestone Forced Oxidation (LSFO) Scrubber Babcock & Wilcox
E302, E503 EJMP Expansion Joint Maintenance Program (EJMP) for Duct Leaks N/A

E303 C12 Electrostatic Precipitator (ESP) Joy Manufacturing Company

E303 C13 Limestone Forced Oxidation (LSFO) Scrubber Babcock & WilcoxOperating Permit No. P062R1M1 Page 9 of 42

Emission Unit No. Control Equipment No. Control Equipment Type and Description Control Equipment Manufacturer & Model Number E303, E503 EJMP Expansion Joint Maintenance Program (EJMP) for Duct Leaks N/A

E304 C14 Electrostatic Precipitator (ESP) Joy Manufacturing Company

E304 C15 Limestone Forced Oxidation (LSFO) Scrubber Babcock & Wilcox
E304, E504 EJMP Expansion Joint Maintenance Program (EJMP) for Duct Leaks N/A

Table 2.3.2, Required Control Equipment for Non-Boiler Emission Units

Emission Unit No. Control Equipment No. Control Equipment Type and Description Control Equipment Manufacturer & Model Number

E201 C03 Enclosed Transfer N/A

E505 C21 Fabric Filter W.W. Sly Model JM3586

E506 C22 Fabric Filter W.W. Sly Model JM3586 E701, E705 C23 Sweeping and Watering of Paved Roads N/A
E702, E704 C24 Watering of Unpaved Roads and Coal Pile Areas N/A

E703 C25 Watering of Unpaved Roads N/A

E707 C26 Watering of Gypsum Pile Areas N/A

E706 C27 Watering of Unpaved Roads N/A

E803 C28 Fabric Filter Chicago Conveyor Model 84BF49

3.0 REQUIREMENTS FOR INDIVIDUAL EMISSIONS UNITS

3.1 Applicable Requirements : All applicable requirements for this facility are listed in Appendix A, Table A.1. This condition is pursuant to 20.2.70.302.A.1 NMAC. Clarifications of specific requirements are cited below.

3.1.1 Information regarding applicable requirements, emission limits, operational limitationsOperating Permit No. P062R1M1 Page 10 of 42

and requirements and work practices is provided below for each emissions unit or set of similar units.

3.1.2 The permittee is subject to and shall comply with all applicable requirements listed in Table A.1 of Appendix A of this permit. For informational purposes Table 3.1.2 below lists the applicable requirements that give rise to emissions limits in this permit.

Table 3.1.2, Applicable Requirements Giving Rise to Permit Emission Limits*

Emission Unit Nos. Applicable Requirement Description of Requirement

E301, E303, E304 40 CFR 60.42(a)(1) PM Emission Limit

E301, E303, E304 40 CFR 60.42(a)(2) Opacity Emission Limit

E301, E303, E304 40 CFR 60.43(a)(2) SO 2 Emission Limit

E301, E303, E304 40 CFR 60.44(a)(3) NOx Emission Limit

E301, E303, E304 20.2.14.201.A NMAC PM Emission Limit

E301, E303, E304 20.2.14.201.B NMAC PM-2 Emission Limit

E301, E303, E304 20.2.31.109.B NMAC SO 2 Emission Limit

E301, E303, E304 20.2.32.109 NMAC NOx Emission Limit

E302 20.2.14.202.A NMAC PM Emission Limit

E302 20.2.14.202.B NMAC PM-2 Emission Limit

E302 20.2.31.110.A NMAC SO 2 Control Efficiency Limit

E302 20.2.32.110.C NMAC NOx Emission Limit

E301, E302, E303, E304 20.2.31.109.C NMAC SO 2 Emission Limits (Plant-Wide)
E301, E302, E303, E304 NSR No. 63-M2, Condition 2 Emission Limits for NOx, SO 2 , PM-10, TSP, CO, and VOC

E803 40 CFR 60.672(a) PM and Opacity Emission LimitsOperating Permit No. P062R1M1 Page 11 of 42

Emission Unit Nos. Applicable Requirement Description of Requirement

E804, E805 40 CFR 60.672(b) Opacity Emission Limit

E602, E603, E604, E605, E606 20.2.61.109 NMAC Opacity Emission Limit
E101, E102, E103, E104, E201, E406, E407, E408, E409, E410, E411, E505, E506, E507, E508, E509, E510, E602, E603, E604, E605, E606, E701, E702, E703, E704, E705, E706, E707, E801, E802, E803 NSR No. 63-M2, Condition 2 Emission Limits for NOx, SO 2 , PM-10, TSP, CO, and VOC

* for information only, not an enforceable condition

3.2 Emission Limits : Emissions from regulated emission units at the facility shall not exceed the allowable emission rates specified in Conditions 3.2.1 through 3.2.9 below. Those conditions are pursuant to 40 CFR Part 50, 40 CFR Part 60, Subparts A, D, and 000, 40 CFR Part 64, 20.2.3 NMAC, 20.2.61 NMAC, 20.2.14 NMAC, 20.2.31 NMAC, 20.2.32 NMAC, Paragraphs 1, 7 and 8 of 20.2.70.302.A NM AC, 20.2.70.302.C NMAC, NSR Permits No. 63- M2, 63-M2-R1, and 63-M3, and any specific applicab le requirement cited for the requirement as part of the specific condition.

3.2.1 Emission Limits for Boiler E301 : Emissions from Emission Unit E301 (Unit 1 boiler) shall not exceed the maximum allowable emission rates specified in Table 3.2.1 below. These limits apply over the averaging period specified in the table and are imposed pursuant to the cited applicable requirement. Compliance with the limits shall be determined by the compliance methods specified in the table.

Table 3.2.1, Maximum Allowable Emission Rates for Emission Unit E301

Pollutant Maximum Allowable Emission Rate Averaging Period Applicable Requirement Compliance Method

NOx 6892.8 tpy Annual Total 20.2.3 NMAC, 40 CFR 50 Per Condition 3.2.1.2

NOx 0.70 lb/MMBtu 3-Hour Average, Rolled Hourly 40 CFR 60.44(a)(3) Per C ondition 3.2.1.2

NOx 0.45 lb/MMBtu 3-Hour Average, Rolled Hourly 20.2.32.109 NMAC Per C ondition 3.2.1.2

SO 2 7045.8 tpy Annual Total 20.2.3 NMAC, 40 CFR 50 Per Condition 3.2.1.3Operating Permit No. P062R1M1 Page 12 of 42

Pollutant Maximum Allowable Emission Rate Averaging Period Applicable Requirement Compliance Method

SO 2 1.2 lb/MMBtu 3-Hour Average, Rolled Hourly 40 CFR 60.43(a)(2) Per C ondition 3.2.1.3

SO 2 1.2 lb/MMBtu 3-Hour Average, Rolled Hourly 20.2.31.109.B NMAC Per Condition 3.2.1.3

TSP 174.8 lb/hr Per Compliance Method 20.2.3 NMAC, NSR No. 63-M2 Per Condition 3.2.1.5 and Condition 3.2.1.6

PM 0.1 lb/MMBtu Per Compliance Method 40 CFR 60.42(a)(1) Per Condition 3.2.1.5 and Condition 3.2.1.6

PM 0.05 lb/MMBtu Per Compliance Method 20.2.14.201.A NMAC Per Condition 3.2.1.5 and Condition 3.2.1.6

PM-2 0.02 lb/MMBtu Per Compliance Method 20.2.14.201.B NMAC Per Condition 3.2.1.5

PM-10 174.8 lb/hr Per Compliance Method 40 CFR 50, NSR No. 63-M2 Per Condition 3.2.1.5 and Condition 3.2.1.6
Opacity 20% 6-Minute Average 40 CFR 60.42(a)(2) Per C ondition 3.2.1.4

CO 3,000 lb/hr Per Compliance Method 20.2.3 NMAC, 40 CFR 50, NSR No. 63-M3 Per Condition 3.2.1.7

VOC 11.1 lb/hr Per Compliance Method NSR No. 63-M2 Per Condition 3.2.1.7

3.2.1.1 The following requirements apply to the specifications in Tables 3.2.1, 3.2.2, 3.2.3, 3.2.4, and 3.2.5:

3.2.1.1.1 Pursuant to 40 CFR 60.42(a)(2), opacity lim its contained in these tables apply except for one 6-minute period per hour of not more than 27% opacity.

3.2.1.1.2 For PM-2 and PM limits imposed pursuant to 20.2.14 NMAC, the permittee need only comply with the PM-2 limit in the tabl e OR with the PM limit in the table.

3.2.1.1.3 The limits with an averaging time designated as “Annual Average” in the table shall apply as averages over 8760 consecutive hours and shall be rolled hourly. The limits with an averaging time designated as “Annual Total” in the table shall apply as totals over 8760 consecutive hours and shall be rolled hourly.

3.2.1.1.4 The limits with an averaging time designated as “Per Compliance Method” in this table shall apply as averages over the time period specified in the designated compliance determination method or the actual time period required to perform the designated testing.Operating Permit No. P062R1M1 Page 13 of 42

3.2.1.2 Compliance with the maximum allowable em ission rates for NOx contained in Tables 3.2.1, 3.2.2, 3.2.3, 3.2.4, and 3.2.5 and which reference this condition shall be determined using data generated in accordance with Conditions 4.2.1 (for NOx CEMS for Emission Units E301, E302, E303, and E304) and 4.2.2 (for NOx CEMS for Emission Units E301, E303, and E304).

3.2.1.3 Compliance with the maximum allowable emission rates for SO 2 contained in Tables 3.2.1, 3.2.2, 3.2.3, 3.2.4, and 3.2.5 and which reference this condition shall be determined using data generated in accordance with Conditions 4.2.1 (for SO 2 CEMS for Emission Units E301, E302, E303, and E304), 4.2.2 (for SO 2 CEMS for Emission Units E301, E303, and E304), and 4.2.3 (for SO 2 CEMS for Emission Units E301, E302, E303, and E304).

3.2.1.4 Compliance with the maximum allowable emission rates contained in Tables 3.2.1, 3.2.2, 3.2.3, 3.2.4, and 3.2.5 and which reference this conditi on shall be determined by data generated in accordance with Conditions 4.2.1 (for CO MS for Emission Units E301, E302, E303, and E304) and 4.2.2 (for COMS for Emission Units E301, E303, and E304).

3.2.1.5 Compliance with the maximum allowable emission rates contained in Tables 3.2.1, 3.2.2, 3.2.3, 3.2.4, and 3.2.5 and which reference this condition shall be determined by compliance with Condition 3.3.11 below, by data generated in accordance with Condition 4.2.5 (for periodic PM, TSP, PM-10, and PM-2 stack testing), and by data generated in accordance with Condition 3.2.1.6 below (CAM monitoring for PM, TSP, and PM-10).

3.2.1.6 The maximum allowable emission rate s contained in Tables 3.2.1, 3.2.2, 3.2.3, 3.2.4, and 3.2.5 and which reference this condition are appli cable emission limitations for the purposes of 40 CFR Part 64, Compliance Assurance Monitoring.

3.2.1.7 Compliance with the maximum allowable emission rates contained in Tables 3.2.1, 3.2.2, 3.2.3, 3.2.4, and 3.2.5 and which reference this cond ition shall be determined by Department inspections of the units and by data generate d in accordance with Condition 4.2.5.2 (for periodic CO and VOC stack testing).Operating Permit No. P062R1M1 Page 14 of 42

3.2.2 Emission Limits for Boiler E302 : Emissions from Emission Unit E302 (Unit 2 boiler) shall not exceed the maximum allowable emission rates specified in Table 3.2.2 below. These limits apply over the averaging period specified in the table and are imposed pursuant to the cited applicable requirement. Compliance with the limits shall be determined by the compliance methods specified in the table.

Table 3.2.2, Maximum Allowable Emission Rates for Emission Unit E302

Pollutant Maximum Allowable Emission Rate Averaging Period Applicable Requirement Compliance Method

NOx 10666.6 tpy Annual Total 20.2.3 NMAC, 40 CFR 50 Per Condition 3.2.1.2

NOx 0.70 lb/MMBtu 3-Hour Average, Rolled Hourly 20.2.32.110.C NMAC Per Condition 3.2.1.2

SO 2 7009.5 tpy Annual Total 20.2.3 NMAC, 40 CFR 50 Per Condition 3.2.1.3

SO 2 Minimum 72% Control 30-Day Average, Rolled Daily 20.2.31.110.A NMAC Per Condition 3.2.1.3

TSP 173.9 lb/hr Per Compliance Method 20.2.3 NMAC, NSR No. 63-M2 Per Condition 3.2.1.5 and Condition 3.2.1.6

PM 0.05 lb/MMBtu Per Compliance Method 20.2.14.202.A NMAC Per Condition 3.2.1.5 and Condition 3.2.1.6

PM-2 0.04 lb/MMBtu Per Compliance Method 20.2.14.202.B NMAC Per Condition 3.2.1.5

PM-10 173.9 lb/hr Per Compliance Method 40 CFR 50, NSR No. 63-M2 Per Condition 3.2.1.5 and Condition 3.2.1.6

CO 2,000 lb/hr Per Compliance Method 20.2.3 NMAC, 40 CFR 50, NSR No. 63-M3 Per Condition 3.2.1.7

VOC 11.1 lb/hr Per Compliance Method NSR No. 63-M2 Per Condition 3.2.1.7Operating Permit No. P062R1M1 Page 15 of 42

3.2.3 Emission Limits for Boiler E303 : Emissions from Emission Unit E303 (Unit 3 boiler) shall not exceed the maximum allowable emission rates specified in Table 3.2.3 below. These limits apply over the averaging period specified in the table and are imposed pursuant to the cited applicable requirement. Compliance with the limits shall be determined by the compliance methods specified in the table.

Table 3.2.3, Maximum Allowable Emission Rates for Emission Unit E303

Pollutant Maximum Allowable Emission Rate Averaging Period Applicable Requirement Compliance Method

NOx 10706.5 tpy Annual Total 20.2.3 NMAC, 40 CFR 50 Per Condition 3.2.1.2

NOx 0.70 lb/MMBtu 3-Hour Average, Rolled Hourly 40 CFR 60.44(a)(3) Per C ondition 3.2.1.2

NOx 0.45 lb/MMBtu 3-Hour Average, Rolled Hourly 20.2.32.109 NMAC Per C ondition 3.2.1.2

SO 2 10944.4 tpy Annual Total 20.2.3 NMAC, 40 CFR 50 Per Condition 3.2.1.3

SO 2 1.2 lb/MMBtu 3-Hour Average, Rolled Hourly 40 CFR 60.43(a)(2) Per C ondition 3.2.1.3

SO 2 1.2 lb/MMBtu 3-Hour Average, Rolled Hourly 20.2.31.109.B NMAC Per Condition 3.2.1.3

TSP 271.6 lb/hr Per Compliance Method 20.2.3 NMAC, NSR No. 63-M2 Per Condition 3.2.1.5 and Condition 3.2.1.6

PM 0.1 lb/MMBtu Per Compliance Method 40 CFR 60.42(a)(1) Per Condition 3.2.1.5 and Condition 3.2.1.6

PM 0.05 lb/MMBtu Per Compliance Method 20.2.14.201.A NMAC Per Condition 3.2.1.5 and Condition 3.2.1.6

PM-2 0.02 lb/MMBtu Per Compliance Method 20.2.14.201.B NMAC Per Condition 3.2.1.5

PM-10 271.6 lb/hr Per Compliance Method 40 CFR 50, NSR No. 63-M2 Per Condition 3.2.1.5 and Condition 3.2.1.6
Opacity 20% 6-Minute Average 40 CFR 60.42(a)(2) Per C ondition 3.2.1.4

CO 2,000 lb/hr Per Compliance Method 20.2.3 NMAC, 40 CFR 50, NSR No. 63-M3 Per Condition 3.2.1.7

VOC 17.3 lb/hr Per Compliance Method NSR No. 63-M2 Per Condition 3.2.1.7Operating Permit No. P062R1M1 Page 16 of 42

3.2.4 Emission Limits for Boiler E304 : Emissions from Unit E304 shall not exceed the rates specified in Table 3.2.4 below. These limits a pply over the averaging period specified in the table and are imposed pursuant to the cited applicable requirement. Compliance with the limits shall be determined by the compliance methods specified in the table.

Table 3.2.4, Maximum Allowable Emission Rates for Emission Unit E304

Pollutant Maximum Allowable Emission Rate Averaging Period Applicable Requirement Compliance Method

NOx 10503.7 tpy Annual Total 20.2.3 NMAC, 40 CFR 50 Per Condition 3.2.1.2

NOx 0.70 lb/MMBtu 3-Hour Average, Rolled Hourly 40 CFR 60.44(a)(3) Per C ondition 3.2.1.2

NOx 0.45 lb/MMBtu 3-Hour Average, Rolled Hourly 20.2.32.109 NMAC Per C ondition 3.2.1.2

SO 2 10736.9 tpy Annual Total 20.2.3 NMAC, 40 CFR 50 Per Condition 3.2.1.3

SO 2 1.2 lb/MMBtu 3-Hour Average, Rolled Hourly 40 CFR 60.43(a)(2) Per C ondition 3.2.1.3

SO 2 1.2 lb/MMBtu 3-Hour Average, Rolled Hourly 20.2.31.109.B NMAC Per Condition 3.2.1.3

TSP 266.5 lb/hr Per Compliance Method 20.2.3 NMAC, NSR No. 63-M2 Per Condition 3.2.1.5 and Condition 3.2.1.6

PM 0.1 lb/MMBtu Per Compliance Method 40 CFR 60.42(a)(1) Per Condition 3.2.1.5 and Condition 3.2.1.6

PM 0.05 lb/MMBtu Per Compliance Method 20.2.14.201.A NMAC Per Condition 3.2.1.5 and Condition 3.2.1.6

PM-2 0.02 lb/MMBtu Per Compliance Method 20.2.14.201.B NMAC Per Condition 3.2.1.5

PM-10 266.5 lb/hr Per Compliance Method 40 CFR 50, NSR No. 63-M2 Per Condition 3.2.1.5 and Condition 3.2.1.6
Opacity 20% 6-Minute Average 40 CFR 60.42(a)(2) Per C ondition 3.2.1.4

CO 2,000 lb/hr Per Compliance Method 20.2.3 NMAC, 40 CFR 50, NSR No. 63-M3 Per Condition 3.2.1.7

VOC 17.0 lb/hr Per Compliance Method NSR No. 63-M2 Per Condition 3.2.1.7Operating Permit No. P062R1M1 Page 17 of 42

3.2.5 Emission Limits for Boilers E301, E302, E303, and E304 Combined : Emissions from Emission Units E301, E302, E303, and E304 (boilers ) combined shall not exceed the maximum allowable emission rates specified in Table 3.2.5 below. These limits apply over the averaging period specified in the table and are imposed pur suant to the cited applicable requirement. Compliance with the limits shall be determined by the compliance methods specified in the table.

Table 3.2.5, Maximum Allowable Emission Rates for Units E301-E304 Combined

Pollutant Maximum Allowable Emission Rate Averaging Period Applicable Requirement Compliance Method

NOx 9,000 lb/hr 24-Hour Average, Rolled Hourly NSR No. 63-M2, 40 CFR 50 Per Condition 3.2.1.2

SO 2 13,000 lb/hr 3-Hour Average, Rolled Hourly 20.2.31.109.C NMAC Per Condition 3.2.1.3

SO 2 0.55 lb/MMBtu 30-Day Average, Rolled Daily 20.2.31.109.C NMAC Per Condition 3.2.1.3

SO 2 0.46 lb/MMBtu Annual Average NSR No. 63-M2 Per C ondition 3.2.1.3

3.2.6 Emission Limits for Boiler Duct Leaks : Emissions from Emission Units E501, E502, E503, and E504 (duct leaks) shall not exceed the maximum allowable emission rates specified in Table 3.2.6 below. These limits are imposed pursuant to 20.2.70.302.A(1) NMAC, 20.2.70.302.A(7) NMAC, 20.2.3 NMAC, and 40 CFR 50.

Table 3.2.6, Maximum Allowable Emission Rates for Duct Leaks Maximum Allowable Emission Rates in Pounds per Hour (pph) and Tons per Year (tpy) PM-10 NOx CO VOC SO2 Emission Unit No. pph tpy pph tpy pph tpy pph tpy pph tpy E501 4.77 20.9 0.27 1.2 - - - - 1.1 4.7 E502 4.69 20.5 0.41 1.8 - - - - 1.1 4.7 E503 4.76 20.8 0.27 1.2 - - - - 1.1 4.7 E504 5.42 23.7 0.30 1.3 - - - - 1.2 5.4

3.2.6.1 Compliance with Condition 3.3.2 below sha ll constitute compliance with the emission limits contained in Table 3.2.6.

3.2.7 Emission Limits for Non-Boiler Units : Emissions from the regulated emission units listed in Table 3.2.7 below shall not exceed the maximum allowable emission rates specified in that table. Emission limits in the table with supers cript numeral 1 are imposed pursuant to Condition 2 of NSR Permit Nos. 63-M2 and 63-M2-R1. Em ission limits in the table with superscript numeral 2 are imposed pursuant to 20.2.70.302.A(1) NMAC and 20.2.70.302.A(7) NMAC andOperating Permit No. P062R1M1 Page 18 of 42

replace less stringent but otherwise identical limits in Condition 2 of NSR Permit No. 63-M2.

Table 3.2.7, Maximum Allowable Emission Rates for Non-Boiler Emission Units Maximum Allowable Emission Rates in Pounds per Hour (pph) and Tons per Year (tpy) TSP PM-10 NOx CO VOC SO2 EU No. pph tpy pph tpy pph tpy pph tpy pph tpy pph tpy E101 4.6 1 20.0 1 0.38 2 1.6 2

- - - - - - - - E102 4.6 1 20.0 1 0.38 2 1.6 2

- - - - - - - - E103 4.6 1 20.0 1 0.38 2 1.6 2

- - - - - - - - E104 4.6 1 20.0 1 0.38 2 1.6 2

- - - - - - - - E201 5.9 1 26.0 1 2.80 1 12.4 1

- - - - - - - - E406 9.4 1 41.0 1 9.40 1 41.0 1

- - - - - - - - E407 9.1 1 39.8 1 9.10 1 39.8 1

- - - - - - - - E408 9.1 1 39.8 1 9.10 1 39.8 1

- - - - - - - - E409 12.5 1 54.9 1 12.50 1 54.9 1

- - - - - - - - E410 0.2 1 1.0 1 0.20 1 1.0 1

- - - - - - - - E411 1.0 1 4.4 1 1.0 1 4.4 1

- - - - - - - - E505 0.1 1 0.5 1 0.1 1 0.3 1

- - - - - - - - E506 0.1 1 0.5 1 0.1 1 0.2 1

- - - - - - - - E507 0.6 1 2.7 1 0.30 1 1.3 1

- - - - - - - - E508 0.6 1 2.7 1 0.30 1 1.3 1

- - - - - - - - E509 1.0 1 4.2 1 0.50 1 2.0 1

- - - - - - - - E510 1.0 1 4.2 1 0.50 1 2.0 1

- - - - - - - - E602 0.4 1 0.1 1 0.30 1 0.1 1 14.60 2 3.7 1 0.40 1 1.0 1 0.40 1 0.1 1 0.20 1 0.1 1
E603 0.4 1 0.1 1 0.30 1 0.1 1 14.60 2 3.7 1 0.40 1 1.0 1 0.40 1 0.1 1 0.20 1 0.1 1
E604 0.4 1 0.1 1 0.60 1 0.1 1 25.10 2 6.3 1 6.40 1 1.6 1 0.80 1 0.2 1 0.40 1 0.1 1
E605 0.4 1 0.1 1 0.60 1 0.1 1 25.10 2 6.3 1 6.40 1 1.6 1 0.80 1 0.2 1 0.40 1 0.1 1
E606 1.5 2 0.4 1 1.50 2 0.4 1 20.80 1 5.2 1 4.40 1 1.1 1 1.60 1 0.4 1 1.20 1 0.3 1
E701 33.6 1 147.3 1 1.30 2 5.9 2

- - - - - - - - E702 3.2 1 14.2 1 0.57 2 2.5 2

- - - - - - - - E703 0.8 1 3.6 1 0.20 2 1.0 2

- - - - - - - - E704 18.0 1 78.7 1

- - - - - - - - - - E705 9.5 1 41.4 1 1.80 1 8.1 1

- - - - - - - - E706 1.0 1 4.3 1

- - - - - - - - - - E707 2.0 1 8.7 1 0.30 2 1.4 2

- - - - - - - - E801 0.7 1 2.9 1 0.30 1 1.4 1

- - - - - - - - E802 2.4 1 10.4 1 0.37 1 1.6 1

- - - - - - - - E803 0.1 1 0.1 1

- - - - - - - - - - E804 - - - 0.2 1

- - - - - - - - E805 - - - 0.6 1

- - - - - - - -Operating Permit No. P062R1M1 Page 19 of 42

3.2.7.1 Compliance with Condition 3.3.3 below sha ll constitute compliance with the emission limits for Emission Units E406, E407, E408, E409, E410, and E411 (cooling towers) specified in Table 3.2.7.

3.2.7.2 Compliance with Condition 3.3.7 and Cond ition 3.3.8 below shall constitute compliance with the maximum allowable emission rates for Emission Units E602, E603, E604, E605, and E606 (emergency generators) specified in Table 3.2.7 above.

3.2.7.3 Compliance with Condition 3.2.8 and Cond ition 3.3.9 below shall constitute compliance with the maximum allowable emission ra tes for Emission Units E803, E804, and E805 (limestone process equipment) specified in Table 3.2.7 above.

3.2.7.4 Compliance with Condition 3.3.4 and Cond ition 3.3.9 below shall constitute compliance with the maximum allowable emission rate s for Emission Units E701, E702, E703, E704, E705, E706, and E707 (road areas) specified in Table 3.2.7 above.

3.2.7.5 Compliance with Condition 3.3.5 and Cond ition 3.3.9 below shall constitute compliance with the maximum allowable emission rates for Emission Units E505 and E506 (fly ash silo loading) specified in Table 3.2.7 above.

3.2.7.6 Compliance with Condition 3.3.6 and Cond ition 3.3.9 below shall constitute compliance with the maximum allowable emission rates for Emission Unit E201 (coal pulverizers) specified in Table 3.2.7 above.

3.2.7.7 Compliance with Conditions 3.3.10 and 3.3.9 below shall constitute compliance with the maximum allowable emission rates specified in Table 3.2.7 for Emission Units E101, E102, E103, and E104 (coal pile maintenance), E507, E 508, E509, and E510 (fly ash silo unloading to trucks), E601 (fuel oil piping leaks), and E801 and E802 (limestone delivery and pile maintenance).

3.2.8 NSPS Emission Limits for Limestone Process Equipment : Emissions from Emission Units E803, E804, and E805 (limestone process equipment) shall not exceed the maximum allowable emission rates listed in Table 3.2.8 below. This condition is imposed pursuant to 40 CFR Part 60, Subpart OOO and the sp ecific citation listed in the table. Compliance with these limits shall be determined by the methods speci fied in Condition 4.2.6 for opacity and Condition 4.2.5 for PM (for Emission Unit E803), and also by compliance with Condition 3.3.5 for Emission Unit E803.Operating Permit No. P062R1M1 Page 20 of 42

Table 3.2.8, NSPS Maximum Allowable Emission Rates for Units E803, E804, and E805

Emission Unit No. Emission Point Emission Limit Applicable Requirement

E803 Limestone Silo Loading (Control C28) 0.022 grain PM per DSCF exhaust 40 CFR 60.672(a)(1)

E803 Limestone Silo Loading (Control C28) 7% Opacity 40 CFR 60.672(a)(2)

E804 Limestone Hopper to Transfer Conveyor 10% Opacity 40 CFR 60.672(b)

E805 Limestone Silo to Weigh Belt Transfer 10% Opacity 40 CFR 60.672(b)

E805 Limestone Weigh Belt to Ball Mill Transfer 10% Opacity 40 CFR 60.672(b)

E805 Limestone Ball Mill Crushing 15% Opacity 40 CFR 60.672(c)

3.2.9 Opacity Limits for Emergency Generators : Emissions from Emission Units E602, E603, E604, E605, and E606 (emergency generators) shall not exceed 20% opacity. This condition is imposed in accordance with 20.2.61.109 NMAC.

3.3 Operational Limits : Regulated emission units at th e facility shall comply with the operational limits and requirements specified in Conditions 3.3.1 through 3.3.13 below. Those conditions are pursuant to 40 CFR Part 50, 40 CFR 60, Subparts A, D, and OOO, 20.2.3 NMAC, 20.2.61 NMAC, Paragraphs 1, 7 and 8 of 20.2.70.302.A NMAC, 20.2.70.302.C NMAC, NSR Permit No. 63-M2, and any specific applicable requi rement cited for the requirement as part of the specific condition.

3.3.1 This condition does not impose any requirement s and has been retained in this permit for editorial purposes.

3.3.2 Expansion Joint Maintenance Program (EJMP) Operational Requirements : The permittee shall carry out a Expansion Joint Maintenan ce Program (EJMP) in order to minimize the duration and spatial extent of duct leaks (Emission Units E501, E502, E503, and E504) on the boilers (Emission Units E301, E302, E303, and E304). To the extent practicable the EJMP shall include routine inspection of duct expansion joints, immediate corrective action if the inspection detects significant leaks, and repairs or replacemen t of expansion joints as needed during major generating unit outages, and shall ensure, to the ex tent practicable, that the area of duct leaks does not exceed 0.25 square feet per emission unit. Compliance with this requirement shall be determined using data generated by the pr ocedures in Condition 4.2.7 and by Department inspections of the units.

3.3.3 Cooling Tower Operational Requirements : Emission Units E406, E407, E408, E409,Operating Permit No. P062R1M1 Page 21 of 42

E410, and E411 (cooling towers) shall be maintained and operated according to manufacturer’s recommendations and good engineering practices, and the circulating water rate, total dissolved solids (TDS) content of that water, and the drift rate for the units shall not exceed the values specified in Table 3.3.3 below. Compliance with the limits in Table 3.3.3 shall be determined using data generated by the method specified in Condition 4.2.8 and by Department inspections of the units.

Table 3.3.3, Circulating Rate, TDS, and Drift Rate Operational Limits for Cooling Towers

Emission Unit No. Circulating Water Rate TDS Content Drift Rate

E406 170,000 gallons/minute 0.0459 lb/gallon 0.002%

E407 165,000 gallons/minute 0.0459 lb/gallon 0.002%

E408 220,000 gallons/minute 0.0459 lb/gallon 0.0015%

E409 227,500 gallons/minute 0.0459 lb/gallon 0.002%

E410 5,000 gallons/minute 0.03756 lb/gallon 0.002%

E411 30,000 gallons/minute 0.0292 lb/gallon 0.002%

3.3.4 Road Area Operational Requirements : Emission Units E701, E702, E703, E704, E705, E706, and E707 (road areas) shall comply with th e operational requirements specified in Table 3.3.4. Compliance with this requirement shall be determined using data generated by the procedures specified in Condition 4.2.9 and by Department inspections of the units.

Table 3.3.4, Operational Requirements for Road Areas

Emission Unit No. Operational Requirements

E701 Unit shall be paved, and swept and watered as necessary, to minimize emissions of TSP and PM-10
E702 Unit shall be watered as necessary to minimize emissions of TSP and PM-10

E703 Unit shall be watered as necessary to minimize emissions of TSP and PM-10

E704 Unit shall be watered as necessary to minimize emissions of TSP and PM-10

E705 Unit shall be paved, and swept and watered as necessary, to minimize emissions of TSP and PM-10Operating Permit No. P062R1M1 Page 22 of 42

Emission Unit No. Operational Requirements

E706 Unit shall be watered as necessary to minimize emissions of TSP and PM-10

E707 Unit shall be watered as necessary to minimize emissions of TSP and PM-10

3.3.5 Fabric Filter Operational Requirements : Emission Units E506 and E507 (fly ash silo loading) and E803 (limestone silo loading) sha ll be equipped and operated with Control Device Numbers C21, C22, and C28, respectively, (fabric filters) as required by Condition 2.3. Control Devices C21, C22, and C28 shall be equipped and operated with devices to monitor the differential pressure drop across the filters. The control devices shall be operated and maintained in accordance with manufacturer’s specifications, including specifications for pressure drop, in order to achieve a minimum 99.5% control of TSP, PM -10, and PM emissions. Compliance with these requirements shall be dete rmined using data generated by the procedures specified in Condition 4.2.10 and by Department inspections of the units.

3.3.6 Coal Pulverizer Requirements : Emission Unit E201 (coal pul verizers) shall be entirely enclosed in a structure that is maintained and operated in accordance with good air pollution control practices in order to minimize emissions of TSP and PM-10.

3.3.7 Emergency Generator Fuel Sulfur Limits : Emission units E602, E603, E604, E605, and E606 (emergency generators) shall burn only No. 2 Diesel Fuel Oil.

3.3.8 Emergency Generator Operating Hours Limits : Emission units E602, E603, E604, E605, and E606 (emergency generators) shall not operate more than 500 hours per year each. Compliance with this requirement shall be dete rmined using data generated by the procedures specified in Condition 4.2.11.

3.3.9 Facility-Wide Raw Material Limits : The facility shall not process more than the quantities of raw materials specified in Table 3.3.9 below. Compliance with this limit shall be determined using data generated by the procedures specified in Condition 4.2.12.

Table 3.3.9, Facility-Wide Operational Limits on Raw Materials

Material Annual Limit

Coal 8,200,000 tons

No. 2 Diesel Fuel Oil 2,912,500 gallons

Limestone 215,000 tonsOperating Permit No. P062R1M1 Page 23 of 42

3.3.10 Miscellaneous Units Operational Requirements : Emission Units E101, E102, E103, and E104 (coal pile maintenance), E507, E508, E509, a nd E510 (fly ash silo unloading to trucks), and E801 and E802 (limestone delivery and pile maintenance) shall be operated in accordance with good air pollution control practices to minimize emissions.

3.3.11 ESP Operations : Emission Units E301, E302, E303, and E304 (boilers) shall be equipped and operated with Control Devices C08, C10, C12, and C14, respectively, (ESPs) as required by Condition 2.3. These control devices shall be maintained and operated in accordance with good air pollution control practi ces for minimizing emissions, and except as provided in Conditions 4.1.8 and 8.0 and in 20.2.7 NMAC, the boiler emission unit associated with each ESP control device shall only be ope rated when the control device is achieving a control efficiency sufficient to ensure complia nce with applicable maximum allowable emission rates. In addition, Control Devices C08, C 12, and C14 are associated with Emission Units E301, E303, and E304, and are therefore subject to the requirements of 40 CFR 60.11(d). Compliance with these requirements shall be de termined using data generated in accordance with Condition 4.2.13 and by Department inspections of the units.

3.3.12 CAM Rule Corrective Action Requirements: Emissions Units E301, E302, E303, and E304 are pollutant specific emission units for PM, TSP, and PM-10 and are subject to and shall comply with the requirements of 40 CFR Part 64, Compliance Assurance Monitoring, including the requirements of 40 CFR 64.7(d) for corrective ac tions. As a requirement of this permit the permittee is subject to and shall comply with the corrective provisions of the CAM Plan submitted in the application for this permit and included in this permit as Attachment 8, except that the trigger points for corrective actions and excursions shall be those specified in Table 3.3.12 below. This condition is imposed pursuant to 40 CFR 64 and 20.2.70.302.A(7) NMAC.

Table 3.3.12, CAM Trigger Points for Corrective Actions and Excursions

Emission Unit Opacity Trigger Point

E301 20%

E302 18%

E303 20%

E304 20%

3.3.12.1 The permittee may use the administrative permit amendment procedures of 20.2.70.404.A(1)(e) NMAC to change the CAM tri gger points in Table 3.3.12. Pursuant to 20.2.70.404.A(4) NMAC the permittee may implemen t such a change upon approval of theOperating Permit No. P062R1M1 Page 24 of 42

Department.

3.3.13 LSFO Scrubber Operations : Emission Units E301, E302, E303, and E304 (boilers) shall be equipped and operated with Control Devi ces C09, C11, C13, and C15, respectively, (LSFO scrubbers) as required by Condition 2.3. These cont rol devices shall be maintained and operated in accordance with good air pollution control prac tices for minimizing emissions. In addition, Control Devices C09, C15, and C15 are associ ated with Emission Units E301, E303, and E304, and are therefore subject to the requirement s of 40 CFR 60.11(d). Compliance with these requirements shall be determined using data generated pursuant to Condition 4.2.15 and by Department inspections of the units.

4.0 EMISSIONS MONITORING AND TESTING REQUIREMENTS

4.1 The conditions of 4.1 are pursuant to 20.2.70.302.C NMAC, NSR Permit No. 63-M2, 40 CFR 60, Subparts A, D and OOO, 40 CFR 75, 20.2.14 NMAC, 20.2.31 NMAC, 20.2.32 NMAC, and any additional applicable requirement cited as part of the specific condition.

4.1.1 General Monitoring Requirements : The following monitoring and/or testing requirements shall be used to determine compliance with applicable requirements and emission limits. Any sampling, whether by portable analy zer or EPA reference method, that measures an emission rate over the applicable averaging period greater than an emission limit in this permit constitutes noncompliance with this permit. The Department may require, at its discretion, additional tests pursuant to EPA Reference Methods at any time, including when sampling by portable analyzer measures an emission rate greater than an em ission limit in this permit; but such requirement shall not be construed as a determination th at the sampling by portable analyzer does not establish noncompliance with this permit and sha ll not stay enforcement of such noncompliance based on the sampling by portable analyzer.

4.1.2 If the emission unit is shutdown at the time when periodic monitoring is due to be accomplished, the permittee is not required to rest art the unit for the sole purpose of performing the monitoring. Using electronic or written mail, the permittee shall notify the Department’s Enforcement Section of a delay in emission te sts prior to the deadline for accomplishing the tests. Upon recommencing operation, the perm ittee shall submit any pertinent pre-test notification requirements set forth in the current version of the Department’s Standard Operating Procedures For Use Of Portable Analyzers in Performance Test, and shall accomplish the monitoring.

4.1.3 The requirement for monitoring during any monitoring period is based on the percentage of time that the unit has operated as follows:

4.1.3.1 If the emission unit has operated for more than 25% of a monitoring period, then the permittee shall conduct monitoring during that period.Operating Permit No. P062R1M1 Page 25 of 42

4.1.3.2 If the emission unit has operated for 25% or less of a monitoring period then the monitoring is not required. After two successive periods without monitoring, the permittee shall conduct monitoring during the next period regard less of the time operated during that period, except that for any monitoring period in which a unit has operated for less than 10% of the monitoring period, the period will not be considered as one of the two successive periods.

4.1.3.3 A minimum of one of each type of monitoring activity shall be conducted during the five-year term of this permit.

4.1.4 The permittee is not required to report a devi ation for any monitoring or testing in section 4.2 if the deviation was authorized in the General Monitoring Requirements section 4.1.

4.1.5 For all periodic monitoring events, except when a federal or state regulation is more stringent, three test runs shall be conducted at 90% or greater of the full nor mal load as stated in this permit, or in the permit application if not in the permit, and at additional loads when requested by the Department. If the 90% lo ad cannot be achieved, the monitoring will be conducted at the maximum achievable load under prevailing operating conditions except when a federal or state regulation requires more restrictive test conditions. The load and the parameters used to calculate it shall be recorded to doc ument operating conditions and shall be included with the monitoring report that is required to be furnished to the Department.

4.1.6 When requested by the Department, the perm ittee shall provide schedules of testing andmonitoring activities. Compliance tests from previous NSR and Title V permits may be reimposed if it is deemed necessary by the Department to determine whether the source is in compliance with applicable regulations or permit conditions.

4.1.7 Monitoring shall become effective 120 days after the date of permit issuance if the monitoring is new or in addition to monitoring imposed by an existing applicable requirement. Any pre-existing monitoring requirements incorporat ed in this permit shall continue to be in force from the date of permit issuance.

4.1.8 For operations and equipment subject to 40 CFR Part 60, excess emissions, or operations under startup, shutdown, or malfunction shall be addressed in accordance with the requirements of 40 CFR 60.7(c) or 40 CFR 60.8(c), as appropriate.

4.2 Unit Specific Monitoring Requirements : The following monitoring applies to regulated emission units at the facility. The conditi ons of 4.2 are pursuant to 20.2.70.302.C NMAC, NSR Permit Nos. 63-M2 and 63-M2-R1, 40 CFR 60, Subparts A, D and OOO, 40 CFR 64, 40 CFR 75, 20.2.14 NMAC, 20.2.31 NMAC, and 20.2.32 NMAC, and any additional applicable requirement cited as part of the specific condition.

4.2.1 Acid Rain Program Monitoring : Emission Units E301, E302, E303, and E304 (boilers) are subject to and shall comply with the re quirements of 40 CFR Part 75 for installation,Operating Permit No. P062R1M1 Page 26 of 42

calibration, maintenance and operation of NOx and SO2 continuous emissions monitoring systems (NOx and SO 2 CEMS) and for continuous opacity m onitoring systems (COMS). In particular the following requirements of Condition 4.2.1 apply:

4.2.1.1 The permittee shall comply with the re quirements at 40 CFR 75.12(a) and 75.12(b) for continuous monitoring of NOx emissions.

4.2.1.2 The permittee shall comply with the requirements at 40 CFR 75.11(a) and 75.11(b)(2) for continuous monitoring of SO 2 emissions.

4.2.1.3 The permittee shall comply with the re quirements at 40 CFR 75.14(a) for continuous monitoring of opacity.

4.2.1.4 The permittee shall comply with the requirements at 40 CFR 75.13(b) and 75.13(c) for continuous monitoring of CO 2 emissions.

4.2.2 NSPS Subpart D Monitoring : Emission Units E301, E303, and E304 (boilers) are subject to and shall comply with the requirements of 40 CFR 60, Subpart A and of 40 CFR 60, Subpart D, 60.45(a) for installation, calibration, maintena nce and operation of NOx and SO2 continuous emissions monitoring systems (NOx and SO 2 CEMS) and continuous opacity monitoring systems (COMS).

4.2.3 20.2.31 NMAC SO2 Monitoring : Emission Units E301, E302, E303, and E304 (boilers) are subject to and shall comply with the requirements of 20.2.31.112 NMAC for SO2 continuous emissions monitoring (CEMS).

4.2.4 NSPS Subpart OOO Monitoring : Emission Units E803, E804, and E805 (limestone process equipment) are subject to and shall co mply with the requirements of 40 CFR 60, Subpart A and of 40 CFR 60, Subpart OOO, 60.675(c) for monitoring emissions.

4.2.5 Periodic Stack Test Monitoring : Emission Units E301, E302, E303, and E304 (boilers) are subject to periodic compliance testing for PM, TSP, PM-10, PM-2, CO, and VOC using stack tests and Emission Unit E803 is subject to periodic compliance testing for PM using stack tests. The tests for PM, TSP, PM-10, and PM-2 on Emission Units E301, E302, E303, and E304 (boilers) shall be performed within 6 months of issuance of this permit and annually thereafter and shall comply with the requirements of Conditions 4.2.5.1 and 4.2.5.2 below. The tests for CO and VOC on Emission Units E301, E302, E303, and E304 (boilers) shall be performed within 6 months of issuance of this permit and quarterly thereafter and shall comply with the requirements of Conditions 4.2.5.1 and 4.2.5.2 below. The tests on Emission Unit E803 shall be performed at the discretion of the Department, and, when required, shall comply with the requirements of Conditions 4.2.5.1 and 4.2.5.2 below.

4.2.5.1 The compliance tests required by Condition 4.2.5 shall be performed in accordance withOperating Permit No. P062R1M1 Page 27 of 42

EPA Reference Methods 1 through 4, Method 5 fo r PM, Method 10 for CO and contained in CFR Title 40, Part 60, Appendix A, and with the requirements of Subpart A, General Provisions
, 60.8(f), and in accordance with 40 CFR 51, Appe ndix M, Method 201 for TSP and PM-10. If approved in advance by the Department and allowed under U.S. EPA policy Method 5 of 40 CFR 60, Appendix A may be used instead of Method 201 of 40 CFR 51, Appendix M, for TSP and PM-10 testing. Test results that demonstrate compliance with CO emission limits shall also be considered to demonstrate compliance with VOC emission limits for the subject emission unit. If the permittee elects to comply with PM-2 limits in this permit compliance tests for PM-2 shall be performed in accordance with the provisions of 20.2.14 NMAC. Alternative test method(s) may be used if the Department approves the change.

4.2.5.2 The compliance tests required by Condition 4.2.5 are subject to the following requirements:

(a) The owner or operator shall notify the Depa rtment at least thirty (30) days prior to the test date and allow a representative of the Department to be present at the test. The permittee shall arrange a pretest meeting with the Department at least thirty (30) days prior to the test date and shall observe the following pre-testing and testing procedures:

(b) The test protocol and test report shall c onform to the standard format specified by the Department. The most current version of the format may be obtained from the Enforcement Section of the Air Quality Bureau.

(c) The permittee shall provide (a) sampling ports adequate for the test methods applicable to the facility, (b) safe samp ling platforms, (c) safe access to sampling platforms and (d) utilities for sampling and tes ting equipment. Sample ports of a size compatible with the test methods shall be located on the stack of each unit in accordance with the provisions of EPA Method 1 of CFR, Title 40, Part 60, Appendix A. The stack shall be of sufficient height and diameter so that a representative test of the emissions can be performed in accordance with EPA Method 1.

(d) During emission tests, the unit heat input rate shall be monitored and recorded. This information shall be included with the test report that is required to be furnished to the Department and shall be listed in tabular form or as part of the summa ry page of the test report.

(e) Where necessary to prevent cyclonic flow in the stack, flow straighteners shall be installed.

(f) The test shall be conducted at 90% or gr eater of full normal load as stated in this permit, or in the permit application if not in the permit, and at additional loads when requested by the Department. If the 90% lo ad cannot be achieved, these tests may be conducted at the maximum achievable load under prevailing operating conditions. TheOperating Permit No. P062R1M1 Page 28 of 42

load and the parameters used to calculate it shall be recorded to document operating conditions and shall be included with the test re port that is required to be furnished to the Department.

4.2.6 Periodic Visual Monitoring of Opacity : At the discretion of the Department Emission Units E803, E804, and E805 shall be subject to peri odic visual determinations of opacity. If required these tests shall be performed in accord ance with EPA Reference Method 9 contained in CFR Title 40, Part 60, Appendix A, and with the requirements of Subpart A, General Provisions
, 60.11.

4.2.7 EJMP Monitoring : For Emission Units E501, E502, E503, and E504 the permittee shall monitor performance of the EJMP to ensure th at the program meets the requirements of this permit. At a minimum, this monitoring sh all include an assessment of the program’s performance in meeting the requirements of C ondition 3.3.2, including an estimate of the actual area of duct leaks present on the subject emissi on units, and shall include maintenance of the records required by Condition 5.2.7. The performan ce assessment shall be performed within 90 days of issuance of this permit and once each calendar quarter thereafter.

4.2.8 Cooling Tower Emissions Monitoring : For Emission Units E406, E407, E408, E409, E410, and E411 the permittee shall monitor the emissions by maintaining all records required by Condition 5.2.8 and by calculating the emissions from those units. Calculation of emissions from those units shall be based on the maximum capacity of the circulating water pump(s) for each unit, actual TDS content, and, if the units have been maintained and operated as required in Condition 3.3, the drift rates specified in that condition. This calculation shall be performed within 90 days of issuance of this perm it and once each calendar quarter thereafter.

4.2.9 Road Areas Monitoring : For Emission Units E701, E702, E703, E704, E705, E706, and E707 the permittee shall monitor emissions by maintaining all records required by Condition 5.2.9 and by performing periodic visual inspections of the subject emission units to determine that emissions are minimized in accordance w ith Condition 3.3.4. This monitoring shall be performed within 90 days of issuance of th is permit and on a weekly basis thereafter.

4.2.10 Fabric Filter Monitoring : For Control Devices C21, C22, and C28 the permittee shall monitor emissions by maintaining all reco rds required by Condition 5.2.10 and by monitoring the pressure drop across each filter. This mon itoring shall be performed within 90 days of issuance of this permit and on a daily basis thereafter.

4.2.11 Emergency Generators Monitoring : For Emission Units E602, E603, E604, E605, and E606 the permittee shall monitor emissions by maintaining all records required by Condition 5.2.11. This monitoring shall be performed within 6 months of issuance of this permit and on an annual basis thereafter.

4.2.12 Raw Material Usage Monitoring : The permittee shall monitor emissions from the unitsOperating Permit No. P062R1M1 Page 29 of 42

to which this condition applied pursuant to Condition 3.3.9 by maintaining all records required by Condition 5.2.12. This monitoring shall be perf ormed within 90 days of issuance of this permit and on a quarterly basis thereafter.

4.2.13 ESP Operations Monitoring : Control Devices C08, C10, C 12, and C14, associated with Emissions Units E301, E302, E303, and E304, respectively, are subject to monitoring for good air pollution control practices and proper operati on and maintenance. This monitoring shall consist of maintenance of the records required by Condition 5.2.13.

4.2.14 CAM Monitoring : Emissions Units E301, E302, E303, and E304 are pollutant specific emission units for PM, TSP, and PM-10 and ar e subject to and shall comply with the requirements of 40 CFR Part 64, Compliance A ssurance Monitoring, including the monitoring requirements therein. As a requirement of this permit the permittee is subject to and shall comply with the monitoring provisions of the CA M Plan submitted in application for this permit and included in this permit as Attachment 8. This condition is imposed pursuant to 40 CFR 64 and 20.2.70.302.A(7).

4.2.1.4.1 The permittee shall continuously monitor stack opacity of Emission Units E301, E302 E303, and E304 in accordance with the specifi cations of 40 CFR Part 60, Appendix B for continuous opacity monitors (COMs). (40 CFR 64.6(c)(1)(ii) and 20.2.70.302.A(7)).

4.2.14.2 The COMs required by Condition 4.2.14.1 shall collect at least one stack opacity reading every 10 seconds, except as allowed by Condition 4.2.14.4 below (40 CFR 64.6(c)(1)(iii), 40 CFR 64.3(b)(4), 40 CFR 64.3(d)(3), and 20.2.70.302.A(7)).

4.2.14.3 The COMS required by Condition 4.2.14.1 shall be maintained at all times, including but not limited to maintaining the spare parts necessary for routine repairs (40 CFR 64.6(c)(3) and 40 CFR 64.7(b)).

4.2.14.4 Except for applicable monitoring malfuncti ons, associated repairs, and required quality assurance or control activities, the permittee shall conduct the opacity monitoring required by Condition 4.2.14.1 at all times that each of Emission Units E301, E302, E303, and E304 is operating. Data recorded during monitoring ma lfunctions, associated repairs, and required quality assurance or control activities shall not be used to meet the requirements of this permit that implement the requirements of 40 CFR Part 64. All data collected during all other periods shall be used in assessing the operation of the control devices for those emission units (40 CFR 64.6(c)(3), 40 CFR 64.7(c)).

4.2.14.5 For the purposes of terms and conditions of this permit that implement the requirements of 40 CFR Part 64, a monitoring malfunction is any sudden, infrequent, not reasonably preventable failure of the monitoring to provide valid data. Monitoring failures that are caused in part by poor maintenance or careless opera tion are not malfunctions (40 CFR 64.6(c) and 40 CFR 64.7(c)).Operating Permit No. P062R1M1 Page 30 of 42

4.2.14.6 For any three hour period beginning on the hour when the block average stack opacity (as determined by the COMs data required by Condition 4.2.14.1) exceeds the values specified in Table 3.3.12 an excursion will be deemed to have occurred. Such excursions shall be recorded and reported pursuant to Conditions 5.2.14 and 6.2.14 below, and shall be reported as a deviation under Condition 6.1.2 below (40 CFR 64.6(c)(2), 20.2.70.302.A(7))).

4.2.15 LSFO Scrubber Operations Monitoring : Control Devices C09, C11, C13, and C15, associated with Emissions Units E301, E302, E303, and E304, respectively, are subject to monitoring for good air pollution control practices and proper operation and maintenance. This monitoring shall consist of maintenance of the records required by Condition 5.2.15.

5.0 RECORDKEEPING Conditions of 5.0 are pursuant to 20.2.70.302.D NMAC.

5.1 General Recordkeeping Requirements : Conditions of 5.0 are pursuant to 20.2.70.302.D.1 NMAC.

5.1.1 All sampling and measured data required by this permit for the emissions units in this facility shall be recorded. The minimum information to be included in these records is:

5.1.1.1 equipment identification (include make, model and S/N for all tested equipment and emission controls), 5.1.1.2 date, and time of sampling or measurements, 5.1.1.3 date analyses were performed, 5.1.1.4 the company or entity that performed the analyses, 5.1.1.5 analytical or test methods used, 5.1.1.6 results of analyses or tests, 5.1.1.7 operating conditions existing at the time of sampling or measurement.

5.1.2 The permittee shall keep copies of all monitoring and measurement data, equipment calibration and maintenance records, Data Acqui sition and Handling System (DAHS) if used, other supporting information, and reports required by this permit for at least five (5) years from the time the data was gathered or the reports wr itten. Each record shall show clearly to which emissions unit and/or piece of monitoring equipm ent it applies, and the date the data was gathered. This condition is pursuant to 20.2.70.302.D.2 NMAC.

5.1.3 The permittee shall keep a record describing off permit changes made at this source that result in emissions of a regulated air pollutant subject to an applicable requirement, but not otherwise regulated under this permit, and the em issions resulting from those changes. This condition is pursuant to 20.2.70.302.I.2 NMAC.

5.2 Unit Specific Recordkeeping Requirements : The following recordkeeping requirementsOperating Permit No. P062R1M1 Page 31 of 42

apply to regulated emission units at the facility. The conditions of 5.2 ar e pursuant to Subsection C and Paragraph D(1) of 20.2.70.302 NMAC, NSR Permit Nos. 63-M2 and 63-M2-R1, 40 CFR 60 Subparts A, D, and OOO, 40 CFR 64, 40 CFR Part 72, 40 CFR 75, 20.2.14 NMAC, 20.2.31 NMAC, 20.2.32 NMAC, and any specific applicable re quirement cited as part of the specific condition.

5.2.1 Acid Rain Program Recordkeeping : Emission Units E301, E302, E303, and E304 are subject to and shall comply with the recordk eeping requirements of 40 CFR Part 72, Acid Rain Permit Program, and 40 CFR 75. In particul ar the requirements of Condition 5.2.1.1 through 5.2.1.6 apply.

5.2.1.1 The permittee shall comply with the requi rements of 40 CFR 75.50(d) for recordkeeping of NOx emissions.

5.2.1.2 The permittee shall comply with the requi rements of 40 CFR 75.50(c) for recordkeeping of SO 2 emissions.

5.2.1.3 The permittee shall comply with the requi rements of 40 CFR 75.50(f) for recordkeeping of opacity.

5.2.1.4 The permittee shall comply with th e requirements of 40 CFR 75.50(e)(2) for recordkeeping of CO 2 emissions.

5.2.1.5 The permittee shall comply with the requirements of 40 CFR 50 for general recordkeeping, including the requirements at 40 CFR 50.52 for certification, quality assurance, and quality control.

5.2.1.6 The permittee shall comply with the requi rements of 40 CFR 75.51(b) for recordkeeping relating to add-on controls using site-specific parametric monitoring for substitute data.

5.2.2 NSPS Subpart D Recordkeeping : Emission Units E301, E303, and E304 are subject to and shall comply with applicable recordkeepi ng requirements of 40 CFR Part 60, Subparts A and D.

5.2.3 20.2.31 NMAC Recordkeeping : Emission Units E301, E302, E303, and E304 are subject to and shall comply with applicable recordkeeping requirements of 20.2.31.113 NMAC.

5.2.4 NSPS Subpart OOO Recordkeeping : Emission Units E801, E802, and E803 are subject to and shall comply with applicable recordkeepi ng requirements of 40 CFR Part 60, Subparts A and OOO, including the requirements of 40 CFR 60.676(f).

5.2.5 Periodic Stack Test Recordkeeping : For Emission Units E301, E302, E303, E304, and E803 the permittee shall keep r ecords of the periodic emissions tests required by ConditionOperating Permit No. P062R1M1 Page 32 of 42

4.2.5.

5.2.6 Periodic Visual Monitoring of Opacity Recordkeeping : For Emission Units E803, E804, and E805 the permittee shall keep records of the periodic visual monitoring of opacity required by Condition 4.2.6.

5.2.7 EJMP Recordkeeping : For Emission Units E501, E 502, E503, and E504 the permittee shall keep records of all inspections of duc t leaks and all maintenance activities, including corrective actions, performed as part of th e EJMP required by Condition 3.3.2, and shall keep records of the EJMP program performance assessments required by Condition 4.2.7.

5.2.8 Cooling Tower Recordkeeping : For Emission Units E406, E407, E408, E409, E410, and E411 the permittee shall keep quarterly records of circulating water flow rate and total dissolved solids (TDS) content. The permittee shall also k eep records of maintenance and repair activities performed on these units.

5.2.9 Road Areas Recordkeeping : For Emission Units E701, E702, E703, E704, E705, E706, and E707 the permittee shall keep records of th e times and locations of sweeping and watering and the amount of water applied and of the o ccurrence of the visual inspections required by Condition 4.2.9.

5.2.10 Fabric Filter Recordkeeping : For Control Devices C21, C22, and C28 the permittee shall keep records of the manufacturer’s operating sp ecifications, including specifications for proper pressure drop across the filters, and shall keep da ily records of the performance of maintenance and repair activities and of the pressure drop across each filter as required by Condition 4.2.10.

5.2.11 Emergency Generator Recordkeeping : For Emission Units E602, E603, E604, E605, and E606 the permittee shall keep monthly records of the hours of operation of each unit.

5.2.12 Raw Material Usage Recordkeeping : The permittee shall keep quarterly records of the quantities of the materials listed in Condition 3.3.9 th at the facility processed during the previous
year.

5.2.13 ESP Operations Recordkeeping : For Control Devices C08, C10, C12, and C14, associated with Emissions Units E301, E302, E303, and E304, respectively, the permittee shall keep monthly records of the performance of ma intenance and repair activities on these control devices.

5.2.14 CAM Recordkeeping : Emissions Units E301, E302, E303, and E304 are pollutant specific emission units for PM, TSP, and PM-10 a nd are subject to and shall comply with the requirements of 40 CFR Part 64, Complia nce Assurance Monitoring, including the recordkeeping requirements of 40 CFR 64.9(b). As a requirement of this permit the permittee is subject to and shall comply with the recordk eeping provisions of the CAM Plan submitted inOperating Permit No. P062R1M1 Page 33 of 42

application for this permit and included in this permit as Attachment 8. This condition is imposed pursuant to 40 CFR 64 and 20.2.70.302.A(7) NMAC.

5.2.15 LSFO Scrubbers Operations Recordkeeping : For Control Devices C09, C11, C13, and C15, associated with Emissions Units E301, E302, E303, and E304, respectively, the permittee shall keep monthly records of the performan ce of maintenance and repair activities on these control devices.

6.0 REPORTING Conditions of 6.0 are pursuant to 20.2.70.302.E NMAC.

6.1 General Reporting Requirements :

6.1.1 Reports shall clearly identify the subject equipment showing the emission unit ID number according to the operating permit. In additi on, all instances of deviations from permit requirements, including those that occur during emergencies, shall be clearly identified in the required reports. Reports of all required monito ring activities for this facility shall be submitted to the Department on the following schedule. This condition is pursuant to 20.2.70.302.E.1 NMAC.

Table 6.1.1, Schedule of Monitoring Activity Report Submittal

Report for Emission or Control Unit Nos. Submittal Date

E301, E302, E303, E304, C08, C09, C10, C11, C12, C13, C14, C15 Within 45 days following the end of every quarterly period following the effective date of permit P062 (August 7, 1998). E501, E502, E503, E504, E406, E407, E408, E409, E410, E411 E803, E804, E805, Raw Material Usage Within 45 days following the end of every 6-month period following the effective date of permit P062 (August 7, 1998).

6.1.2 The permittee shall submit reports of all de viations (including emergencies) from permit requirements to the Department when they occu r. The permittee shall communicate initial notice of the deviation to the Department within twenty -four (24) hours of the st art of the first business day following the discovery of the occurrence vi a telephone or facsimile. Within ten (10) calendar days of the start of the first busine ss day following the discovery of the occurrence, written notice shall be submitted to the Departme nt using the Department’s Excess Emissions Form currently in use at time of discovery. This condition is pursuant to 20.2.70.302.E.2 NMAC.

6.1.3 At such time as new units are installed as authorized by NSR Permits 63-M2, 63-M2R1, and 63-M3, the permittee shall fulfill the notification re quirements of condition 1 (Reporting) of the General Conditions in the NSR permits.

6.2 Unit Specific Monitoring Reports Requirements : The conditions of 6.2 are pursuant toOperating Permit No. P062R1M1 Page 34 of 42

20.2.70.302.E NMAC, NSR Permit Nos. 63-M2 and 63-M2-R1, 40 CFR 60 Subparts A, D, and OOO, 40 CFR 64, 40 CFR Part 72, 40 CFR 75, 20.2.14 NMAC, 20.2.31 NMAC, 20.2.32 NMAC, and any specific applicable requirement cited as part of the specific condition.

6.2.1 Acid Rain Program Reporting : Emission Units E301, E302, E303, and E304 are subject to and shall comply with the reporting requirement s of 40 CFR Part 72, Acid Rain Permit Program, and 40 CFR 75, Continuous Emission Monitoring.

6.2.2 NSPS Subpart D Reporting : Emission Units E301, E303, a nd E304 are subject to and shall comply with applicable reporting requirements of 40 CFR Part 60, Subparts A and D.

6.2.3 20.2.31 NMAC Reporting : Emission Units E301, E302, E303, and E304 are subject to and shall comply with applicable reporting requirements of 20.2.31.113 NMAC.

6.2.4 NSPS Subpart OOO Reporting : Emission Units E803, E804, a nd E805 are subject to and shall comply with applicable reporting requi rements of 40 CFR Part 60, Subparts A and OOO, including the requirements of 40 CFR 60.676(f).

6.2.5 Periodic Stack Test Reporting : For Emission Units E301, E302, E303, E304, and E803 the permittee shall report the results of the periodic emissions tests required by Condition 4.2.5. These reports shall be submitted in accordance with the current version of the Department’s Standard Operating Procedure for Content of Stack Test Reports.

6.2.6 Periodic Visual Monitoring of Opacity Reporting: Compliance with Condition 6.2.4 constitutes compliance with this condition.

6.2.7 EJMP Reporting : For Emission Units E501, E502, E503, and E504 the permittee shall report the records of the EJMP program perf ormance assessments required by Condition 5.2.7 to be maintained.

6.2.8 Cooling Tower Reporting : For Emission Units E406, E407, E408, E409, E410, and E411 the permittee shall report the results of the emission rate calculation required by Condition 4.2.8.

6.2.9 Road Areas Reporting : For Emission Units E701, E702, E703, E704, E705, E706, and E707 no reporting is required.

6.2.10 Fabric Filter Reporting : For Control Devices C21, C22, and C28 no reporting is required.

6.2.11 Emergency Generator Reporting : For Emission Units E602, E603, E604, E605, and E606 no reporting is required.

6.2.12 Raw Material Usage Reporting : The permittee shall submit the records required byOperating Permit No. P062R1M1 Page 35 of 42

Condition 5.2.12.

6.2.13 ESP Operations Reporting : For Control Devices C08, C10, C12, and C14, associated with Emissions Units E301, E302, E303, and E 304, respectively, the permittee shall report a summary of the records required by Condition 5.2.13.

6.2.14 CAM Reporting : Emissions Units E301, E302, E303, and E304 are pollutant specific emission units for PM, TSP, and PM-10 and ar e subject to and shall comply with the requirements of 40 CFR Part 64, Compliance Assurance Monitoring, including the reporting requirements of 40 CFR 64.9(a). As a requirement of this permit the permittee is subject to and shall comply with the reporting provisions of th e CAM Plan submitted in application for this permit and included in this permit as Attachment 8. This condition is imposed pursuant to 40 CFR 64 and 20.2.70.302.A(7).

6.2.15 LSFO Scrubbers Operations Reporting : For Control Devices C09, C11, C13, and C15, associated with Emissions Units E301, E302, E303, and E304, respectively, the permittee shall report a summary of the records required by Condition 5.2.15.

7.0 COMPLIANCE

7.1 The permittee shall submit compliance certifi cation reports certifying the compliance status of this facility with re spect to all permit terms and conditions, including applicable requirements. These reports shall be made on the current versi on of the Department’s Compliance Certification Report Form (example attached to this permit) and submitted to the Department and to EPA at least every 12 months. This report shall cover th e period from January 1 to December 31 of each year and is due by January 30 of the following y ear. The conditions of Section 7.1 are pursuant to 20.2.70.302.E.3 NMAC.

7.1.1 For sources that have submitted air dispersion modeling that demonstrates compliance with federal ambient air quality standards, comp liance with the terms and conditions of this permit regarding source emissions and operation sha ll be deemed to be compliance with federal ambient air quality standards (40CFR50 NAAQS).

7.2 The permittee shall allow representatives of the Department, upon presentation of credentials and other documents as may be requi red by law, to do the following: Conditions of 7.2 are pursuant to 20.2.70.302.G.1 NMAC.

7.2.1 enter the permittee's premises where a source or emission unit is located, or where records that are required by this permit to be maintained are kept,

7.2.2 have access to and copy, at reasonable times, any records that are required by this permit to be maintained,Operating Permit No. P062R1M1 Page 36 of 42

7.2.3 inspect any facilities, equipment (incl uding monitoring and air pollution control equipment), work practices or operation regulated or required under the permit,

7.2.4 sample or monitor any substances or pa rameters for the purpose of assuring compliance with this permit or applicable requirements or as otherwise authorized by the federal Act.

7.3 A copy of this permit shall be kept at the permitted facility and shall be made available to Department personnel for inspection upon reque st. This condition is pursuant to 20.2.70.302.G.3 NMAC.

8.0 EMERGENCIES Conditions of 8.0 are pursuant to 20.2.70.304 NMAC.

8.1 An "emergency" means any situation aris ing from sudden and reasonably unforeseeable events beyond the control of the permittee, in cluding acts of God, which situation requires immediate corrective action to restore normal ope ration, and that causes the source to exceed a technology-based emission limitation under the permit due to unavoidable increases in emissions attributable to the emergency. An emergency shall not include noncompliance to the extent caused by improperly designed equipment, lack of preventive maintenance, or careless or improper operation.

8.2 An emergency constitutes an affirmative defense to an action brought for noncompliance with technology-based emission limitations cont ained in this permit if the permittee has demonstrated through properly signed, contempor aneous operating logs, or other relevant evidence that: (a) An emergency occurred and that the permittee can identify the cause(s) of the
emergency; (b) This facility was at the time being properly operated; (c) During the period of the emergency the permittee took all reasonable steps to minimize levels of emissions that exceeded the emission standards or other requirements in this permit; (d) The permittee fulfilled notification requirements under Condition 6.1.2 of this permit. This notice must contain a description of the emergency, any steps taken to mitigate emissions, and corrective actions taken.

8.3 In any enforcement proceeding, the permittee seeking to establish the occurrence of an emergency has the burden of proof.

8.4 This provision is in addition to any em ergency or upset provision contained in any applicable requirement.Operating Permit No. P062R1M1 Page 37 of 42

9.0 PERMIT REOPENING AND REVOCATION 9.1 This permit will be reopened and revised when any one of the conditions referenced in Conditions 9.1.1 and 9.1.2 occurs, and may be revoke d and reissued when 9.1.3 or 9.1.4 occurs. Conditions of 9.1 are pursuant to 20.2.70.405.A.1 NMAC.

9.1.1 Additional requirements under the federal Act beco me applicable to this source three (3) or more years before the expiration date of this perm it. If the effective date of the requirement is later than the expiration date of this permit, th en the permit is not required to be reopened unless the original permit or any of its terms and cond itions has been extended due to the Department's failure to take timely action on a request by the permittee to renew this permit.

9.1.2 Additional requirements, including excess emi ssions requirements, become applicable to this source under Title IV of the federal Act (the acid rain program). Upon approval by the Administrator, excess emissions offset plans will be incorporated into this permit.

9.1.3 The Department or the Administrator dete rmines that the permit contains a material mistake or that inaccurate statements were made in establishing the terms and conditions of the permit.

9.1.4 The Department or the Administrator dete rmines that the permit must be revised or revoked and reissued to assure compliance with an applicable requirement.

9.2 Proceedings to reopen or revoke this permit sh all affect only those parts of this permit for which cause to reopen or revoke exists. Emissions units for which permit conditions have been revoked shall not be operated until new permit conditions have been issued for them. This condition is pursuant to 20.2.70.405.A.2 NMAC.

10.0 ACID RAIN SOURCES Conditions of 10.0 are pursuant to 20.2.70.302.A.9 NMAC.

10.1 Where an applicable requirement of the fede ral Act is more stringent than an applicable requirement of regulations promulgated under Title IV of the federal Act, both provisions are incorporated into this permit and are federally enforceable.

10.2 Emissions exceeding any allowances held by the permittee under Title IV of the federal Act or the regulations promulgated thereunder are prohibited.

10.3 No modification of this permit is required fo r increases in emissions that are authorized by allowances acquired pursuant to the acid rain program, provided that such increases do not require a permit modification under any other applicable requirement.

10.4 The permittee may not use allowances as a defense to noncompliance with any other applicable requirement.Operating Permit No. P062R1M1 Page 38 of 42

10.5 No limit is placed on the number of allowan ces held by the acid rain source. Any such allowance shall be accounted for according to the procedures established in regulations promulgated under Title IV of the federal Act.

10.6 The acid rain permit is an enclosure of this operating permit.

11.0 RISK MANAGEMENT PLAN 11.1 This facility is subject to the requireme nt for a Risk Management Plan (RMP) under 40CFR68. The owner or operator shall certify a nnually, as described in Section 7.1 of this permit, that they have developed and implemented a RMP and are in compliance with 40CFR68. This condition is pursuant to 20.2.70.302.A.1 NMAC.

12.0 STRATOSPHERIC OZONE 12.1 The permittee shall comply with the standards for recycling and emissions reductions pursuant to 40CFR82, Subpart F, including th e requirements of Conditions 12.1.1 through 12.1.3 below. These conditions are pursuant to 20.2.70.302.A.1 NMAC.

12.1.1 Persons opening appliances for maintenance, service, repair, or disposal must comply with the required practices pursuant to subsection 82.156.

12.1.2 Equipment used during the maintenance, servi ce, repair, or disposal of appliances must comply with the standards for recycling and recovery equipment pursuant to subsection 82.158.

12.1.3 Persons performing maintenance, service, re pair, or disposal of appliances must be certified by an approved technician certification program pursuant to subsection 82.161.

APPEAL PROCEDURES Any person who participated in this permitting acti on before the Department and who is adversely affected by the action taken by the Department c oncerning this permit, may file a petition for a hearing before the Environmental Improvement Bo ard ("board"). The petition must be made in writing to the board within thirty (30) days from the date notice is given of the Department's action. This petition must specify the portions of the pe rmitting action to which the petitioner objects and certify that a copy of the petition has been mailed or hand-delivered as required by 20.2.70.403.A.2 NMAC; a copy of the permitting action for which revi ew is sought must be attached to the petition. Upon receipt of the appeal notice, the petitioner mu st mail or deliver a copy of the petition to the Department, and to the applicant or permittee if the petitioner is not the applicant/permittee. Requests for a hearing shall be sent to:

Secretary, New Mexico Environmental Improvement Board 1190 St. Francis Drive, Runnels Bldg. P.O. Box 26110Operating Permit No. P062R1M1 Page 39 of 42

Santa Fe, New Mexico 87502

Unless a timely request for a hearing is made, the d ecision of the Department will be final. If a timely request for hearing is made, the board will hold a hearing within sixty (60) days of receipt of the petition in accordance with the New Mexico Air Quality Control Act NMSA 1978 § 74-2-7 and 20.2.70.403.A.3 NMAC.

Any person who is adversely affected by an administrative action taken by the board pursuant to 20.2.70.403.A NMAC may appeal to the Court of A ppeals in accordance with New Mexico Air Quality Control Act NMSA 1978 § 74-2-9. Petitions for judicial review must be filed no later than thirty (30) days after the administrative ac tion. This condition is pursuant to 20.2.70.403.B NMAC and New Mexico Air Quality Control Act NMSA 1978 § 74-2-9.

SUBMITTAL OF REPORTS AND CERTIFICATIONS Test protocols, excess emission forms, test re ports, compliance certification reports, monitoring results and reports, emissions sampling and measurement data, monitoring activity reports, compliance schedule progress reports, and any other compliance status information required by this permit shall be certified by the responsible official and submitted to: Program Manager, Compliance &Enforcement Section New Mexico Environment Department Air Quality Bureau P.O. Box 26110 Santa Fe, New Mexico 87502-0110 In accordance with 20.2.70.302.E.3 NMAC, Compliance Certifications Reports shall be submitted to the Administrator at the address below: Chief, Air Enforcement Section US EPA Region-6, 6EN-AA 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733 Questions about this permit should be referred to Jo e Kimbrell of the Air Quality Bureau in Santa Fe at (505) 955-8026.

Copies of the following documents can be downloaded from the NMED web site at URL http://www.nmenv.state.nm.us/aqb/permit/app_form.html for your convenience, or requested from the Bureau.

Documents: 1) Excess Emission Form (for reporting deviations and emergencies) 2) Compliance Certification Report Form 3) Acronyms 4) SOP for Stack Test Protocol 5) SOP for Use of Portable Analyzers in Performance TestsOperating Permit No. P062R1M1 Page 40 of 42

6) SOP for Contents of Stack Test Reports 7) Acid Rain Permit, P062R1, dated February 04, 2005 8) CAM PlanOperating Permit No. P062R1M1 Page 41 of 42

APPENDIX A

Table A.1, Applicable Requirements for This Facility The permittee shall comply with all applicable s ections of the requirements listed in the following table

.

Applicable Requirement Federally Enforceable Entire Facility Unit Nos.
20.2.7 NMAC - Excess Emissions during Malfunction Startup, Shutdown and Maintenance X X
20.2.14 NMAC Coal Burning Equipment – Particulate Emissions X E301, E302, E303, E304 20.2.31 NMAC Coal Burning Equipment – Sulfur Dioxide X E301, E302, E303, E304 20.2.32 NMAC Coal Burning Equipment – Nitrogen Dioxide X E301, E302, E303, E304 20.2.61 NMAC Control of Smoke and Visible Emissions X E602, E603, E604, E605, E606
20.2.70 NMAC Operating Permits X X

20.2.71 NMAC Operating Permit Emission Fees X X

20.2.77 NMAC New Source Performance Standards X E301, E302, E303, E304, E803, E804, E805 *Air Quality Bureau Permit Nos. 63M2, 63M2R1, 63M3 X X
40 CFR 50 National Ambient Air Quality Standards X X
40 CFR 60 Subpart A – Standards of Performance for New Stationary Sources - General Provisions X E301, E303, E304, E803, E804, E805 40 CFR 60 Subpart D – Standards of Performance for Fossil-Fuel-Fired Steam Generators X E301, E303, E304

40 CFR 60 Subpart OOO – Standards of Performance for Nonmetallic Mineral Processing Plants X E803, E804, S805

40 CFR 64 Compliance Assurance Monitoring X E301, E302, E303, E304 40 CFR 68 Chemical Accident Prevention Provisions X X
40 CFR 72 Subparts B, D, and I – Acid Rain Permit Regulations X E301, E302, E303, E304Operating Permit No. P062R1M1 Page 42 of 42

Applicable Requirement Federally Enforceable Entire Facility Unit Nos.
40 CFR 73 Subparts B, C, and D – Sulfur Dioxide Allowance System X E301, E302, E303, E304 40 CFR 75 Subparts A-G - Continuous Emission Monitoring X E301, E302, E303, E304 40 CFR 76 Acid Rain Nitrogen Oxides Emission Reduction Program X E301, E302, E303, E304

40 CFR 77 Excess Emissions X E301, E302, E303, E304 40 CFR 82 Subpart B – Protection of Stratospheric Ozone, Servicing of Motor Vehicles X X
* As these permits were incorporated into NSR Permit 63M4; but the new requirements covered in 63M4 from the Consent Decree dated March 9, 2005 are not included as conditions in this Title V permit, P062R1M1.

Table A.2, The Department has determined that the following requirements identified in the permit application are not applicable requirements for this facility, or the requirement does not impose any conditions in this permit.

Requirements identified in the Permit Application as applicable Not Applicable For This Facility (1) No Requirements (2) 40 CFR 60 Subpart K – Standards of Performance for Storage Vessels for Petroleum Liquids X
40 CFR 60 Subpart Ka -Standards of Performance for Storage Vessels for Petroleum Liquids X

(1) No existing or planned operation/activity at this facility triggers the applicability of these requirements.

(2) Although these regulations may provide guidance, they do not impose any specific requirements on the operation of the facility as described in this permit.