GREG FISCIIER t.f."-YOR 

### May 19, 2015 Beverly Banister Director 

# A 

# •
AIR POLLUTION CONTROL DISTRICT LOUISVILLE, KENTUCKY



### Air, Pesticides, and Taxies Management Division US EPA, Region 4 Sam 

### Nunn Atlanta Federal Center 61 Forsyth Street, SW Atlanta, GA 30303**K~11llll** 1'AIIEY Sl!.
. OJIU!CTOR



### Subject: Clean Air Act (CAA) 

### 11 O(l) Non-Interference Demonstration to support the approval ofthe source specific Nitrogen Oxides (NOx) Reasonably Available Control Technology (RACT) plan for Louisville Gas 

### & Electric Cane Run Generating Station (LG&E Cane Run) KY 214

Dear Ms
. Banister: The Louisville Metro Air Pollution Control District (APCD) is submitting the following Non-Interference Demonstration for Louisville/Jefferson County, Kentucky to support the Environmental Protection Agency ' s {EPA) 

### approval ofthe State Implementation Plan (SIP) submittal KY 214. On February 13, 2013, the Kentucky Division for Air Quality {DAQ) submitted to EPA onbehalfofAPCD a source specific NOx RACT plan for LG&E Cane Run. CAA Section 110{1) prohibits EPA from approving anyproposed 

### SIP revision that interferes with the attainment and maintenance ofthe National Ambient Air Quality Standards (NAAQS) in effect at the time ofthe revision. The supplemental information requested by EPA demonstrates that the proposed source specific NOx 

### RACTplan for LG&E Cane 

### Run does not interfere with any applicable requirement concerning attainment and reasonable further progress, or any other applicable requirement as required by Section 110(1) ofthe federal CAA
. I
. Background

WWW.LOUtSVILLEKY.COV WWW.LOUISVJLLEKY.GOV IAPCD 158 BARRET AVE:-IVE, ROOM 205 LOUISVILLE, KENTUCKY 40204

- 1745Beverly Banister, Director May 19,2015 Page ZofS In response to the NOx SIP caU , APCD adopted Regulation 6.42 

### ReasonablyAvailable Control Technology Requirements for Major Volatile Organic Compound andNilroge, Oxides Emitting Facilities on February 2, 1994. Regulation 6.42 Section 1.2 establishes the requirements for RACT determination, demonstration, and compliance for Volatile Organic Compounds (VOC) and NOx emitting facilities. Furthermore, Regulation 6.42 requires APCD to submit each source specific RACT determination to the EPA for approval into the SIP. APCD submitted the regulation for approval into the SIP on May 21, 1999 and the EPA published approval in the Federal Register at 66 FR 53658 and 66 FR 33216. To comply with Regulation 6.42, LG&E submitted a NOx RACT analysis for the coalfired units 4, 

### 5 and 6 (U4, U5, and U6) for Cane Run in July 1994. In response>on November 8, 1999, APCD proposed and the Air Pollution Control Board (Board) adopted a NOx RACT plan establishing emission rates for NOx. The EPA suggested several improvements and Amendment 1 ofthc NOx RACT plan was adopted on October 18,2000. The EPA published approval for the plan in the Federal Register at 66 FR 33512

## a~**66** FR 5366 p 

## JO(':J. 

## 3 

# jot
On June 13,2011, LG&E submitted an application to construct a new natural gas-fired combined cycle generating facility (NGCC Unit) (U 15 and U 16) and retire U4, US, and U6 at Cane Run to comply with new federal requirements, including the Mercury & Air Toxics Standards (MATS) and Cross

- State Air Pollution Rule (CSAPR). In response, on July 18, 2012, APCD proposed and the Board adopted Amendment 2 establishing emission rates for 

### 1\0x.

11. Supplemental Information Table 1 presents the coal-fired electric generation (U4, 

### US, and U6) figures for ca

pacity, the NOx limits per RACT, NOx allowable per year and VOC emissions. The NOx RACT limits range from 0.47 to 0.52 Jb/MM Btu, the total NOx allowable per year is 13,053 tons and the possible VOC emissions total 73.9 tons per year (tpy). Table 

### 1. 

### Coal-Fired Electric 

### Generation (U4, US, & U6)
NOx NOx Unit limits per Allowable Unit Capacity RACT per year 

# voc (lb/MM (MMBtulhr) Btu) (tonlyr) (tpy) U4 1,639 0.52 3.733 20.3 U5 1,875 0.52 4,271 23.2 U6 2,453 0.47 5,050 30.4 Total for coal boilers 

### 13,053 73.9**Rt:ferenccs ~**  I. Permit 175-00-TV {R2), DM #68067. 2
. 20 l3 Emission Inventory, DM #65726. 3
. Plant wide PTE for Cnne Run, DM #61551. Table 2 presents the new NGCC Unit (U15 and Ul6) figures for capacity, the NOx limits per RACT, NOx allowable per year and pennitted allowable VOC emissions. The NOxBeverly B1mistcr, Director May 19,2015 Page 3 ofS RACT limit for U15 is 0.43 lb!MWh and 3.6 Jb/hr for U16. The total NOx emissions allowable per year is 

### 1,393 tons and the possible VOC emissions total 

### 99.1 tpy. 

### Table 2. NGCC-Fired Electric Generation (U15 & 

### Ul6) 1
NOx NOx Unit limits per Allowable Unit Capacity RACT 

### p_er year VOC U15 MW lb/MWh tonlyr (tpy) (NGCC) 

### 731 0.43 1,3 77 97.0

U16 MMBtulhr lblhr tonlyr (tpy) (Auxiliary

Boiler) 59.9 3.6 15. 8 2.1 Total for NGCC and Aux. boiler 

### 1,393 99.1 References: 1. Permit175·00-TV (R2), DM #68067. 2. 2013 Emission lnventory, OM #65726. 3. Plant wide PTE for Cane Run, DM #6155 I. A comparison ofTable 1 and 2 demonstrates a significant reduction of 11, 660 tpy of NOx allowable emissions. According to the 2013 emission inventory data, the NOx emissions for the coal-fired boilers at LG&E Cane Run are 30% ofthe total NOx emssions from Title V sources in Jefferson County. Conversion to the NGCC Unit, with a NOx allowable per year of 

### just 1,393 tpy, will have 

### a considerable postive impact on the air quality 

### in Louisville/Jefferson County. The comparison also indicates a possible increase of25.2 tpy ofVOC emissions. However, any possible increase 

### in VOC emissions will be offset bythe reduction 

### in NOx emissions. Table 3 summarizes an APCO analysis ofozone sensitivity based on data from monitors in the Louisville Metropolitan Statistical Area and a region-wide modeling project known as the "Southeastern Modeling, Analysis, and Planning" (SEMAP). 2 SEMAP, initiated by Southeastern States Air Resource Managers (SESARM), Inc. is an integrated assessment using a one-atmosphere modeling approach to aid member states in the development ofSIPs for 

### 0 3 and 

### PM2.s. and address the air pollution problems 

### in the SESARM states.

1 The table excludes lhe emission calculations for the fuel gas dew point heater (UI7) because it will not be constructed. 2 Odam, Talat, and Zac Adelman. Emissions andAir Quality Modeling for SEMAP. Georgia Institute of Technology Environmental Engineering Department, the University ofNorth Carolina Institute for the Environment and the Colorado State University Cooperative Institute for Research in the Atmosphere. October 15,2014.Bever ly Hamster, Director May 19,2015 Pagc4 ofS 

### Table 3. Louisville MSA Ozone Sensithitr Sensitivity of0 3 

### to Reductions ofNOx and VOC 

# I I 

### Tons per day of03 

### reduced Monitoring Site Count y NOx 

## voc Shepardsville I 

### #210290006 Bu11itt -1 6.492864 73 -1.773531185 Elizabethtown

#210930006 I 

### Hardin -16.33448501 -0.978168872 I 

### Bates Elementary #211110027 Jefferson -12.46735753 -5.518252679 Watson Lane 

# . ' 

### #211110051 Jef ferson -14.52759258 -2.208531284 WLKY-TV #211111021 Jefferson -9.370160048 -4.649527701

Buckner I**~** 

### #211850004 Oldham -13
.98681808 -1.92340706 RefercncL'S' 

### Average I. Data is from the SE\tAP pro j ect (2009

-2(114) which made usc 

### Minimum ofrobust emt5sions modeling platfonns dc\·clopcd from data collct:tcd by SESAIUvl states, and c1<tcnsh·c modding tools 

### Maximum 1 m

plcmL'1llcd h> the SEMAP modelmg u:um. 2
. A 2007 baseline was de\' eloped prior to a 2018 year projection, f rom v.hich SL'flsiti\itics where calculillcd
. 

### NOx/VOC Ratio 9.299 16.699 

### I 2.259 6
.578 2.015 7.272 7.354 2.015 16.699

The analysis demonstrates that NOx emission reductions are 2-16 times more effective t han VOC emission reductions at reducing ozone concentrations. Conservatively, a twenty-five ton increase in VOC emissions can be offset 

### with a fifty ton reduction in NOx emissions
. Thus, the potential increase of25.2 tpy is far offset by the reduction in NOx emissions of 11,660 tpy.

111. Conclusion NOx is a precurser to the formation ofground-level ozone and the formation ofPM2 5, 

### both criteria po1lutants. High concentrations ofground-level ozone and particulate matter are serious threats to pu blic health and welfare. Significant reductions ofNOx, as well as carbon dioxide, particulates, sulfur dioxide, carbon monoxide and mercury \Vill 

### be achieved by retiring the coal-fired boilers and convt!rting the generation ofelectrity to natural gas. The conversion to natural gas 

### will result in less smog and acid rain formation and 

### will not create coal combustion residuals. 

## ***** For the reasons set forth above, approval does not interfere with any applicable requirement concerning attainment and reasonable further progress, or any other applicable requirement as required by Section 11 00) ofthe federal CAA. APCD respectfully requests EPA to approve the LG&E Cane Run NOx RACT plan-Amendment 2.

3 Indiana monitoring sites not included
.Beverly Banister,**D~rcctor** May 19,2015 Page 5 ofS 

### 1 

### f you have any questions regarding this request or need additional information, please contact Paul Aud at (502) 574-7234 or paul.aud@louisvilleky.gov or Stacey Barbro at (502) 574-5237 or stacey.barbro@louisvilleky
.gov. Sincerely
.

Keith H. Talley Sr., Director Louisville Air 

### Pollution Control District

cc: Sean Alteri, Kentucky Division for Air Quality Lynorae Benjamin, US EPA, Region 4 Rachael Hamilton, APCD Paul Aud, APCD