P. 1



# OAR Box 

# 1778 Prepped by Ollie Stewart



### Document

Number: 

# 27 ) ll-B- 2
Docket Number: 

# A-90-0 6

Printed 10/28/20089:50:52 AM

Sheet 27 of 276P. 2

DAT E . MA R 2 5 198 3

UNITE D STATE S ENVIRONMENTA L PROTECTIO N AGENC Y REGIO N V

SUBJECT : ps D Applicabilit yfo ra Powe rPlan t II-B- 2 Lif e Extensio n Projec t 

### -• i 

### W

FROM : Davi dKee , Directo r Ai r an dRadiatio nDivisio n TO : Geral d A

. Emison , Directo r Offic e o f Ai rQualit yPlannin g an d Standard s I a m requestin g quidanc e o n a Preventio n o f Significan t Deterioratio n (PSD) app l icabilit ydetermination

. Wisconsi n Electri c Powe rCompan y(WEPCO

) intend s t o renovat e it s Por t Washingto n plant

. Th e Wisconsi n Departmen t o f Natura l Resource s (WDNR

) has aske d i f th e Unite d State s Environmenta l Protectio n Agenc y(USEPA

) consider s thes e renovation s subjec t t o th e requirement s fo r a "majo rmodification " i n th e Federa l PS D regulation s i n 4 0 CF R 52.21

. A physica l chang e o rchang e i n th e metho d o f operatio n o f a majo rstationar y sourc e i s subjec t t o PSD

. However , a n increas e i n th e hour s o f operatio n o r th e productio n rat e i s no t considere d a physica l chang e o rchang e i n th e metho d o f operatio n [se e 4 0 CF R 52.21(b)(2)(iii)(f)]

. WEPC O believe s th e renovatio n projec t i s merel ya n increas e i n productio n whic h i s no t subjec t t o PS D regulations

. WEPC O operate s fiv e coal-fire d boiler s a t th e Por t Washingto n plant

. On e boile rhas bee n shu t dow n fo r3 year s du e t o a cracke d stea m drum

. The other s have no t bee n abl e t o operat e a t ful l capacit ydu e t o degradation

. Som e o f th e boiler s have suffere d mor e degradatio n tha n other s a s illustrate d be i ow :
Generato rNameplat e

(megawatts ) 1986

Uni t 1 Uni t 2 Uni t 3 Uni t 4 Uni t 5 8 0 80 8 0 80 8 0 Summe rCapabi l (megawatts )

49. 0 69. 0 78. 0 57. 0 75. 0 ity * Yea r o f Initia l operatio n
1935 194 3 1948 1949 195 0

* Fro m Inventor yo f Powe rPlant s i n th e Unite d State s 1986

. Administratio n Energ yInformatio n

EP A FOR M 1320- 6 (RE V 3-76 1 ^ ^ 

### , «; . 

### $ £P. 3

Th e renovation s ar e intende d t o restor e th e boiler s t o thei rnameplat e capacitie s an d t o allo w the m t o operat e unti l 2010

. Plantwid e capacit ywoul d increas e abou t 4

0 percen t above curren t level s t o 40 0 megawatts

. Ne t emissio n increase s o f sulfu rdioxide , particulat e matter , an d possibl yothe rpollutant s woul d b e "significant. " Capita l expenditure s wil l b e require d t o restor e th e los t capacit ybecaus e majo rboile rcomponents wil l b e replaced

. W e ar e requestin g concurrenc e wit h ou rdeterminatio n tha t th e WEPC O renovation s ar e no t exemp

t fro m PS

D regulation s unde rth e provision s o f 40 CF R 52.21(b)(2)(iii)(f)

. W e conside rthi s exemptio n t o b e onl yfo rincrease s u p t o th e productio n rat e tha t th e sourc e ca n operat e a t withou t alterin g equipment

. I n othe rwords , a n increas e i n productio n rat e i s exempt bu t a renovatio n tha t increase s th e productio n rat e i s no t eve n thoug h th e renovatio n restore s los t capacity

. Althoug h th e Por t Washingto n plan t ma yhav e bee n abl e t o operat e a t 40 0 megawatt s i n th e past , degradatio n ha s cause d operationa l limitation s tha t hav e restricte d thei rpotentia l t o emit

. Ou runderstandin g i s tha t a n increas e i n actua l emission s u p t o th e potentia l t o emi t woul d b e exemp t unde r40 CF

R 52.21(b)(2)(i1i)(f ) bu t a n increas e i n th e potentia l t o emi t woul d not

. I hav e attache d letter s fro m Mr

. Dal e Zieg e o f WDN R date d Novembe r9 , 1987 , an d February5 , 1988 , an d fro m Mr

. Mark Steinber g o f WEPC

O date d March 17 , 1988

. Thes e letter s compris e th e Stat e and.company' s reques t fo ran applicabilit y determination

. W e reques t you rconsideratio n o f thi s applicabilit yissu e becaus e boile rlif e extensio n project s appea rt o b e o n th e increas e nationwid e an d you rdeterminatio n her e ma yimpac t numerou s othe rprojects

. I f yo u have an yquestions , pleas e contac t m

e o rBil l MacDowel l o f m ystaf f a t FT

S 886-6043

.

Attachment sP. 4
•<:*.

( 

# Wisconsin

Electric

POW[R COMPANY 23 1 W
. MICHIGAN , P.O
. BO X 2046
. MILWAUKEE
. W l 5320 1 (414)277-234 5

( Jul y

8 , 198 7

Mrs . Jacquelin e K . Reynold s Secretar

y t o th e Commission Publi c Servic e Commissiono f Wisconsi n Pos t Offic e Bo

x785 4 Madison , Wisconsi n5370 7
Dear Mrs . Reynolds : * • i • - U J o



# c Pursuan t t o Sectio n196.4 9 o f th

e Wis . Stats , an

d Sectio

nPS C 112.05(l)(b ) o f th e Wis . Admin . Code , Wisconsi nElectri c Powe r Compan y (Applicant ) make s appli catio nfo r authority

t o renovat e unit s 1 throug h5 an d commo nplan t facilitie s a t it s Por t WashingtonPowe r Plan t locate d i nth

e city o f Por t Washington , Ozauke e County , Wisconsin . Renovatio nwil l involv

e replacements , modifications , an d addition s a t th e generatin g plant .
I . Descriptiono f Projec t Applican t propose s t o perfor m major renovatio

nmaintenanc e onPor t Washingto n Powe r Plan t unit s 1 throug h5 an d commo nplan t facilities . Thi s projec t i s th e resul t o f evaluation s performed b y Applican t an

d it s consultant , Bechte l Easter n Powe r Corporation(Bechtel) . Th e assessmen t b y Bechte l i s include d i nth e Plan t Availabilit y

Stud y (PAS) , a cop

y o f whic hwa s previousl y submitte d t o th

e commission . Thi s projec t ha s bee nestablished t o manag e implementatio no f selected PA S recommendation s ove r a four-yea r period . Th e facilitie s tha t wil l underg o renovatio ninclud e th

e turbine-generators , boilers , mechanica l an d electrica l auxiliaries , an d th e commo nplan t suppor t facilities . Generally , the renovatio nwor k items include d i nthi s applicatio n ar e thos e tha t woul d normall y occu r onl y onc e o r twic e durin g a unit' s expecte

d lif e cycle . A

listing o f the work items for eac huni t an d fo r the plan t commo n facilitie s i s attache d a s Exhibi t A . Th e wor k items ar e intende d t o b e complete

d durin g th e perio

d 198 8 throug

h1991 . Renovatio ni s necessar y t o allo

w th e Por t Washingtonunit s t o operat e beyon d thei r currentl y

planne d retiremen t date s o f 199 2 (unit s 1 an d 2 ) an d 199 9 (unit s 3 , 4 an d 5 ) a s describe d i nAdvanc e Plan4 . PA S recommendation s fallin g int o th

e categor

y o f repetitiv

e maintenanc e that are normall y

performed durin

g schedule

d equipmen t outage s d o no t requir e specifi c commissionapprova l and , accordingly , ar e no t included i nthi s application . Further , PA S recommendation s fo r th e upgradin

g o f th

e WPDE S wast e wate r treat men t syste

m an d installationo f 2 2 k V bu s faul t protectio nequipmen t ar e alread y i nprogres s du

e t o need .P. 5

(

(



# c Mrs . Jacqueline K . Reynold s

Jul y 8 , 198 7 Pag e 2
II . Projec t Cos t an d Financin

g Applican t estimate s th e tota l gros s cos t o f th e renovationmaintenanc e wor k t o be $83,843,000 , detaile d a s follows :

Ite m Amoun t Capita l an

d Remova l Cost s Uni t 1 $ 7,026,00 0 Uni t 2 8,432,00 0 Uni t 3 7,710,00 0 Uni t 4 6,718,00 0 Uni t 5 5,186,00 0 Commo n Facilitie s 10.542.00 0 Subtota l $45,614,00 0 Associated Maintenanc e Cost s 36,052,00 0 AFUDC Charge s 2.177,00 0 Tota l Estimate d Gros s Projec t Cos t $83,843,00 0
Th e cos t estimat e i s based o nperformin g th e wor k item s ove r th e four-yea r period , 198 8 t o 1991 , utilizin g successiv

e nine-mont houtag e period s for th e fiv e units . Th e cos t o f th

e projec t wil l b

e me t fro

m interna l source s and/o r fro m the issuanc e an

d sal e o f securities . III . Purpos e an

d Necessit y

o f Projec t
The Por t WashingtonPowe r Plan t consist s o f fiv e simila r generatin g unit s with pulverized coa l fire d boiler s providin g stea m t o turbine-generators . Th e tota l designed nameplat e capabilit y o f th e plant i s 40 0 MW . Sinc e bein

g place d i nservic e durin g th e perio d 193 5 t o 1950 , the overal l capability o f th e fiv e unit s ha s decreased du e t o age-related deteriorationo f equipment . Th e curren t tota l plan t ne t capability ha s declined b

y 40% . Th e singl e larges t proble m relate s t o uni t 5 whic hha s bee nou t o f servic e sinc e Januar y 198 5 pendin g resolutio

no f a crackin

g proble

m i nth e boile r rea r stea m drum . I nMarc h1983 , Applican t initiate d a Plan t Availabilit y Stud y t o asses s th

e physica l conditiono f th e pulverize

d coa l fire

d generatin

g unit s a t th

e Nort h Oak Creek , Sout hOa k Creek , an d Por t Washingtonpowe r plants . Th e stud y confirmed , wit hrespec t t o Por t WashingtonPowe r Plant , tha t extensiv e renovatio

no f th e fiv e unit s an

d the plan t commo

nfacilitie s i s neede d i f operationo f th e plan t i s t o be continued . Th e stud

y indicated a need t o perfor m certai nmajo r maintenanc e i nthe nea r futur e an

d concluded tha t th e Por t Washingto

nPowe r Plan t i s capabl e o f generatin g a t it s designed capabilit y unti l year 201 0 i f renovationo f th e unit s i s under taken . Operationunti l yea r 201 0 represent s a lif e extensiono f th e unit s fro

mP. 6

(

(



# c Mrs . Jacqueline K . Reynold s

Jul y 8 , 198 7 Pag e 3 thei r planne

d retiremen t dates . Renovatio ni s als o expected t o improv e plant availability , capability , an d hea t rate . Assessment s resultin g fro m the Plant Availability Stud y wer e used t o determine the scop

e o f renovationmaintenance . I nparticular , the examination s o f equip men t i nuni t 3 wer e used a s th e basi s for wor k scope s i nthe othe r four units . A s the renovatio

noutage s occur , a detaile d examinationo f equipmen t wil l als o be performed inunit s 1 , 2 , 4 an d 5 . Shoul d inspectionrevea l th e nee d for unanticipated repai r tha t woul d hav e a significan t impac t o nth e renovatio n project , th

e impac t wil l b

e evaluate

d befor e proceedin g wit hth

e repair . Appli can t wil l advis e the commissiono f an y suc hunanticipated significan t repairs . I nadditio

nt o th e renovationmaintenance , regularl y performed maintenanc e wor k i s necessar

y t o assur e tha t th e plant wil l continue t o provid e satisfactor y service .
IV . Effec t o f Projec t o nCos t o f Operatio

nan d Reliabilit y

o f Servic e Applican t believe s th e propose d projec t i s the prope r alternative t o discharg e it s obligatio

na s a publi c utility . Renovatio no f th e facilitie s wil l improv e th e efficienc

y an d maintai nth

e reliability

o f Applicant' s service . I t wil l no t provid e facilitie s i nexces s o f present an d probabl e futur e requirements . Whe n placed i noperation , th e proposed projec t wil l no t resul t i nannua l cost s disproportionat e t o th e servic e valu e o f th e wor k t o b e performed .
V . Descriptionan d Cos t o f Property Bein g Retired

A descriptiono f th e propert y t o b e retire

d an d it s gros s boo k cos t wil l b e submitted t o th

e commissionupo

ncompletio

no f th

e required engineerin g work . VI . Descriptio

no f Alternative s Alternative s t o th e propose d projec t considere d b y Applican t ar e a s follows : Alternative 1 - Retir e al l unit s a t th e plan t durin

g the 198 8 t o 199 0 tim e period . Alternative 2 - Promptl y renovat e unit s 3 , 4 an d 5 , resulting i nthei r lif e extensiont o th

e year 2010 , an

d retir e unit s 1 an d 2 immediately . Alternative 3 - Promptl y renovat e unit s 3 , 4 an d 5 , resulting i nthei r lif e extensio n t o th e yea r 2010 , an d dela y renovationo f unit s 1 an d 2 . Th e thre e alternative s wer e rejecte d becaus e th

e lif e cycl e accumulated discounte d revenu e requirement s fo r eachwer e greate r tha ntha t fo r th e propose d renovatio

n project . Als o considere

d a s a technologica l demonstratio nprojec t wa s replacemen t o f th e uni t 5 boile r witha pressurized fluidize d be d combustion(PFBC ) boile r an d renovationo f th

e balanc e o f th

e uni t 5 equipment . A napplicatio nfor th e uni t 5 projec t wa s file d wit hth

e commissio

nonOctobe r 17 , 1985 . Renovatio no f th e remainin

g fou r unit s an

d commo nplan t facilitie s wa s planned t o b e carrie

d ou tP. 7

Mrs . Jacquelin e K . Reynold s ( Jul y

8 , 198 7 ^ Pag e 4
a s describe dherein . Carryin g ou t o f th e PFB C projec t wa s contingen t o nobtaining fundin g commitment s fro m source s externa l t o Applicant , includin g Clea nCoa l Technolog y

fund s fro

m th e Unite dState s Departmen t o f Energy (DOE) . Du e t o inabilit y

t o obtai nfund s fro

m DOE , Applican t cancele dth e PFB C projec t ando n Marc h10 , 198 7 withdre w it s applicatio nwit hth e commissio nfo r authorit y t o construc t the demonstratio nproject . I t wa s the ndecide dt o includ e uni t 5 wit hth e previousl y

planne dprojec t fo r renovatio no f unit s 1 t o 4 . VII . Entitie s Affecte d b y Proposed Projec t
N o othe r entit y

i s affecte db

y th e propose dproject . VIII . Environmenta l Screenin g Informatio n Pursuan t t o Sectio nPS C 2.90(3)(z ) o f the Wis . Admin . Code , a nenvironmenta l impac t statemen t i s no t require dfo r thi s project . Therefore , screenin g informatio n i s no t bein g submitted .

( IX . Floo dHazar dExposure/Impac t Por t Washingto nPowe r Plan t i s no t i n o r nea r any designate dfloodplai no r floodwa y area . Ver y trul y yours ,

Thoma s J . Cassid

y ' Executiv e Vic e Presiden t si p Attachment s

cc : Chairma nCharle s H . Thompso n Commissione r Mar y

Lo uMunt s Commissione r Georg e R . Edga r Ms . Chery l Pofah l



# CP. 8



### Stat e o f Wisconsi n \ 

### DEPARTMENT O F NATURA L RESOURCE S

Carroll D. Besadny Secretary

Februar y 5 , 198 8 

### prCEIVE D

CF 3 0 9 198 8 Mr
. Josep h Paisie , Chie f Technica l Analysi s Sectio n "^^^^v * Ai r an d Radiatio n Branc h (5AR26 T U.S
. Environmenta l Protectio n Agenc y 23 0 Sout h Dearbor n Stree t Chicago , I L 6060 4 BO X 792 1 MADISON , WISCONSI N 5370 7 I N REPL

Y REFE R TO : 453 0

Dea r Mr
. Paisie : Pursuan t t o ite m8 o f th e U.S
. EPA- WDNR PS D delegatio n agreemen t o f Novembe r 13 , 1987 , ou r agenc yseek s concurrenc e o n ou r Interpretatio n o f sectio n 4 0 CF R 52.2 1 a s i t relate s t o th e propose d renovation s a t Wisconsi n Electri c Powe r Compan y(WEPCO ) - Por t Washington

. Th e Issu e a t han d 1 s th e applicabilit yo f PS D revie wt o thi s utilit yboile r lif e extensio n project

. Do n Theiler' s lette r o f Novembe r 9 , 198 7 t o Stev e Rothblat t presente d ou r vie w o f Wisconsi n la w governin g majo r sourc e modifications

. Th e Wisconsi n Departmen t o f Natura l Resource s ha s determine d tha t neithe r th e propose d renovation s o f th e unit s a t th e Por t Washingto n powe r plan t no r th e resumptio n o f operatio n o f Uni t 5 ar e subjec t t o ne wsourc e revie wunde r th e Wisconsi n SIP
. Th e Novembe r 9 lette r als o Indicate d tha t th e repair s t o Uni t 5 wil l amoun t t o onl y3-5 X o f th e fixe d capita l cos t o f a comparabl e (bu t brand-new ) boile r system
. Similarly , th e propose d renovation s fo r eac h o f Unit s 1- 4 wil l requir e a n expenditur e o f fa r les s tha n 50 X o f th e replacemen t cos t o f a ne w boiler

. Therefore , th e renovation s fo r eac h uni t wil l no t constitut e "reconstruction" , s o tha t th e provision s o f Ne wSourc e Performanc e Standard s (NSPS ) wil l no t apply
. Routin e maintenance , repai r an d replacemen t d o no t constitut e majo r modification s t o a sourc e (4 0 CF R 52.2l(b)(2)(11l)(a))
. Th e Department' s Investigatio n Int o th e WEPCO-Por t Washingto n situatio n ha s concentrate d o n th e natur e o f th e renovation s propose d fo r th e fiv e unit s (boilers)

. Becaus e o f ou r limite d expertis e I n utilit yboile r maintenance , w e hav e consulte d Wisconsi n Publi c Servic e Commissio n (PSC ) engineerin g staf f fo r assistanc e i n evaluatin g th e planne d maintenanc e activities

. Alle n Hubbar d o f ou r ne w sourc e revie wstaf f ha s als o discusse d th e lif e extensio n projec t a t th e Beckjor d Powe r Statio n nea r Cincinnat i wit h To mTucke r o f th e Southwester n Ohi o A1 r Pollutio n Contro l Agenc y(SOAPCA)
. Utilit yboiler lif e extensio n projects , suc h a s th e WEPCO-Por t Washingto n plan t restoration , ar e o f kee n interes t t o PSC
. Alette r summarizin g PSC' s thought s o n th e Por t Washingto n projec t an d ho w 1 t fit s 1 n wit h Wisconsin' s utilit yAdvanc e Plan s i s i n process . SOAPCA' s Mr
. Tucke r Indicate d tha t th eP. 9

Mr . Joe,Paisie , Chie f - Februar y 4 , 198 8 2
Beckjor drenovations , whic hlik e thos e propose dfo r Por t Washingto nsimpl y restore dboile r capacit y whic hhadbee nlos t du e t o th e norma l agin g o f utilit y boilers , wer e determine dt o be exemp t from PS D becaus e the y represente dIncrease s i nthe productio nrate s o f source s whic har e limite di n capacit y b y a SIP . Suc hIncrease s ar e specificall y exempte dfro m

PS D revie w b y 4 0 CF R52.2l(b)(2)(111)(f) . I t I s th e opinio no f DN Rtha t th e renovation s a t WEPCO-Por t Washingto nar e simila r t o thos e a t Beckjor dan dar e indee droutin e I nnatur e fo r a utility . Therefore , Hk e a t Beckjord , a PS D permi t i s no t require do f WEPC O fo r undertakin g th e propose dplan t lif e extensio nactivities . Wha t 1 s you r vie w

o f ou r Interpretatio no f th e applicabilit y o f th e PS D regulation s t o th e WEPCO-Por t Washingto nrenovations ? We believ e tha t yo u wil l agre e tha t WEPC O ma y procee dwit hthi s lif e extensio nprojec t withou t a PS D permit . (I f EP A

staf f nee dfurthe r informatio nt o evaluat e thi s situation , we woul dappreciat e i t i f the y woul dtel l u s wha t Informatio nI s needed . To o ofte ni nth e pas t peopl e hav e jus t sai d"mor e informatio ni s needed " withou t specifyin g th e exac t natur e o f tha t missin g Information. ) Sincerely , 

# Pj» ^**jr~ Dal e Ziege , P.E . Sourc e Revie w

Uni t Engineerin g & Surveillanc e Sectio n Burea uo f Ai r Managemen t DZ:AH:jmc/2725 E

cc : Donal dTheile r - AM/ 3 Alle nHubbar d- AM/ 3 Da nJohnsto n- AM/ 3 To m Steld l - LC/ 5 Marci a Penne r - LC/ 5 Wol f Klasse n- SE D Jef f Berge r - SE D Ji m Leveranc e - Wisconsi nPubli c Servic e Commissio n Stev e Bric k - Wisconsi nPubli c Servic e Commissio n Da nDash o - Wisconsi nPubli c Servic e Commissio n Mar k Steinber g - WEPC OP.1 0



# Wisconsin Electric

POWER

COMPANY 23 1 W.MICHIGAN , P.O
. BO X 2046 , MILWAUKEE , W l 5320 1 (414 ) 221-234 5

March17 , 198 8
Mr . Davi d Ke e Directo r o

f Ai r an

d Radiation Divisio n U.S . Environmenta l ProtectionAgenc y 23 0 Sout hDearborn Stree t Chicago , I L 6060 4
Dea r Mr . Kee : POR T WASHINGTO

N RENOVATIO

N PROJEC T Wisconsi n Electri c understand s tha t EP A RegionV

an d EP A Headquarter s staf f i s currentl y reviewin

g th e Februar

y 5 , 198 8 lette r fro

m th e Wisconsi n DN

R requestin

g concurrenc e o

n DNR' s determination tha t physica l an d operationa l change s resultin g fro m ou r Por t Washingto nrenovationprojec t wil l no t trigge r PS D requirement s unde r th e Stat e an

d Federa l definition of "modif ication. " Th e tw

o base s fo

r th e exemptio

n stated i n th

e DN R lette r wer e th

e "routin e maintenance , repai r an d replacement " exemptio

n an d th e "production rate/hour s of operationincrease " exemption . Th e issue presente d i n thi s instanc e i s whethe r the change s contemplated b

y WEPC O wil l fal l withi non e of thes e exemption s t o th e PS D "modification " definition . W e understan

d tha t th

e revie w b y Region V

an d Headquarter s presentl y focuse s o

n th e "routine maintenanc e an d repair " exemption . Since , a s yo

u ar e aware , tim

e i s of th

e essenc e i n beginnin g th e Por t Washingto n project , w e believ

e tha t EP

A coul d ac t mor e quickl y i f th e agency

wer e to focu s o

n th e "production rate/hour s of operation increase " exemption . Tha t exemptio n provide s tha t " a physica l chang e o r chang e inth

e metho d of operation " i s no t a "modification " i f th e change s brin

g abou t "a n increas e i n th

e hour s of operationo r i nth e production rate " tha t i s no t prohibited b y an y "federall y

enforceabl e permi t condition. " Se e 4 0 C.F.R . Sec . 52.21(b)(2)(iii)(f) . Th e Por t Washingto n plant consist s of fiv e unit s designed witha maximu m capacit y

of 8 0 M

W each . Al l of thes e unit s ha d bee n operated i

n th e pas t a

t thei r maximu

m desig ncapacity . I

nth e earl y 1980s , th

e unit s a

t th e plan t bega

n t o deteriorat e t

o th e poin t tha t th

e compan

y concluded severa l unit s shoul d no t continu e t

o b e operated a

t maximu

m desig ncapacity . Th

e purpos e

r 

### .\, r

### v^; ^ ntm \ '" 

# IP MA R 

### 2 1 198 8

» l ^ A»ir v r> « r^ i .-r,~. , ~. .P.1 1

Pag e 2 Marc h17 , 198 8
of th e planne

d renovation projec t i s t o allo w al l unit s t

o b e reliabl y

operated agai n u

p to , bu

t not above , thei r desig n capacity

o f 8 0 M

W each . A

t n o tim e ha s a federall y

enforceabl e permi t condition existed tha t limit s th e operation of an

y o f th e unit s t o les s tha

n th e desig n capacity

o f 8 0 M

W o r limit s th

e hour s of operation of th e units . Unde r thes e circumstances , w e believ

e tha t th

e planned renova tio n projec t fall s directl y unde r th

e production rate/hour s of operation increas e exemption of th e "modification " definition . Accordingly , th

e Regionca

nconcu r wit hDN

Rs determination withou t havin

g to reachan

y issue s of firs t impressio n potentiall y

raised b

y th e "routine maintenanc e exemption . I loo k forwar

d t o talkin

g t o you r staf f (an

d to anyone inth

e OAQP S Staf f involved i n reviewin g th e DN R request) . O f course , w e wil l follo

w you r lea d a s t o th e mos t efficien t wa y of resolvin

g thi s matte r an

d wil l quickl y

respon

d to an

y request s yc u ma y hav e for additiona l information . Pleas e hav

e you r staf f cal l m

e at (414)221-215 7 wit han y question s the

y ma y have . Than k yo u fo r you r considerationof thi s matter . Sincerely ,

Mar k P . Steinber g Superintenden t Ai r Qualit y cj o
cc : Mr . D . Dash

o - PSC W Mr . D . Theile r - DN RP.1 2

Stat e o f Wisconsi n \ DEPARTMEN T O F NATURA L RESOURCE S Carroll O. Besadny Secretary BO X 792 1 MADISON , WISCONSI N 5370 7 

### Novembe r 9 , 198 7 I N REPL YREFE RTO : 453 0

Mr . Stev e Rothblatt , Chie f A1 r an dRadiatio nBranc h"• - ' 1 ' •, U.S . Environmenta l Protectio nAgenc y 23 0 Sout hDearbor nStree t Chicago , I L 6060 4 ' " --••••- ; 

### •

Dea r Mr . Rothblatt : O nSeptembe r 14 , 1987 , th e Burea uo f A1 r Managemen t receive da copy o f th e Jul y 8 , 198 7 lette r from

Thoma s J . Cassid y

o f Wisconsi nElectri c Powe r Compan y (WEPCO ) t o Jacquelin e K . Reynold s o f the Publi c Servic e Commissio n(PSC ) o f Wisconsi nconcernin g th e propose drenovatio no f Unit s 1 throug h5 a t WEPCO' s Por t Washingto npowe r plant . Thi s lette r wa s forwarde dt o ou r agenc y fro m th e PS C afte r some staf f discussion . Perhap s yo urecal l tha t Uni t 5 a t WEPC O - Por t Washingto nha s bee nou t o f servic e sinc e January , 198 5 du e t o ligamen t crackin g i n It s rea r stea m drum . O nSeptembe r 16 , 1985 , the Wisconsi nDepartmen t o f Natura l Resource s receive d a PS Dpermi t applicatio nfrom WEPC O t o construc t a pressurized , fluldlze dbe d combustio n(PFBC ) boile r t o repowe r th e existin g Uni t 5 turbine . Thi s applicatio nwa s deeme dt o b e complet e o nMarc h28 , 1986 . Th e PS Dpermi t wa s neve r issue dbecaus e the applican t coul dno t agre e wit hth e permittin g authoritie s (DN

RandEPA ) o ncertai npermi t languag e andconsequentl y requeste dtha t th e permit s remai nunissue db y the agencies . Th e Burea uo f A1 r Managemen t ha s recentl y verifie dtha t th e facilit y 1n questio n(Uni t 5 a t WEPC O - Por t Washington ) ha s 1 nfac t bee ncarrie do nth e Wisconsi nA1 r Emission s Inventor y throughou t It s perio do f 1n~operat1on . A s yo uknow , s . 144.391(4)(b)2. , Wis . Stats. , provide s tha t th e resumptio no f operatio no f a sourc e afte r a perio do f closur e I s a nexemp t modificatio n 1 . I f th e existin g equipmen t wa s continuousl y Include di nth e sourc e Inventor y a s anexistin g sourc e covere db y th e SIP , 2 . 1 f th e specifie dchang e doe s no t caus e o r exacerbat e th e violatio no f an ambien t ai r qualit y

standard , and 3 . i f th e specifie dchang e doe s no t caus e o r exacerbat e th e violatio no f a n ambien t ai r qualit y

increment .P.1 3

/Mr . Stev e Rothblat t - Novembe r 9 , 198 7 2 .
Th e Burea uha s now

als o projecte dtha t th e resumptio no f operatio no f (th e repaired ) Uni t 5 a t WEPC O - Por t Washingto nwil l neithe r caus e no r exacerbat e th e violatio no f a n ambien t ai r qualit y standar do r increment . Therefore , th e Stat e o f Wisconsi nwil l no t vie w the renovation s a t th e Por t Washingto nplan t t o actuall y

modif y any o f th e boilers . Furthermore , th e capita l expenditure s fo r the repair s t o Uni t 5 amoun t t o onl y 3 % t o 5 Xo f th e fixe dcapita l cos t o f a comparabl e brand-ne w boile r system . I t I s ou r understandin g tha t althoug hth e PFB C projec t wa s no t actuall y permitted , th e complet e applicatio na s o f Marc h28 , 198 6 se t PS D baselin e fo r Ozauke e Count y

fo r TSP ^ W

e ar e unsur e a s t o the statu s o f th e PS D baselin e fo r SO£fo r thi s county , however . WEPC O agree dt o restric t th e tota l plan t S0 2 emission s vi a a permi t s o tha t the y coul dtak e credi t fo r th e shutdow n o f the ol dNo . 5 boile r (an dit s S0 2 emissions ) an d thu s ne t ou t o f PS D review fo r S0 2 fo r th e propose dfluldize dbe d boiler . Bu t thes e restriction s wer e neve r enforceabl e becaus e the permi t wa s neve r Issued . Doe s thi s mea ntha t th e PFB C project' s complet a applicatio nfile dwit hthe DN R1n fac t se t PS D baselin e fo r bot hTS P an dS0 2 ? Pleas e advis e u s a s t o the applicabilit y o f the variou s PS D regulation s t o the WEPC O - Por t Washingto npowe r plan t a s the y carr y ou t thei r renovations . Sincerely ,

Donal d F
. Theiler , Directo r Burea u o f Ai r Managemen t DFT:dl/9362 W Enclosure
cc : Dal e Zieg e - AM/ 3 Alle nHubbar d- AM/ 3 Ralp hPatterso n- AM/ 3 Marci a Penne r - LC/ 5 Mar k Steinber g - Wisconsi nElectri c Powe r Compan y Roge r Dodd s - Wisconsi nElectri c Powe r Company