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# OAR Box 1778 Prepped byOllie Stewart



### Document

Number: 

# 74 ) ll-C-1 6 Docket Number: 

# A-90-0 6

Printed 10/28/20089:50:54AM

Sheet 74of 276P. 2

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. 202-^82-695 0 II-C-1 6

UNITE D STATE S ENVIRONMENTA LPROTECTIO N AGENCY

WASHINGTON , D.C

. 2046 0


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. a*." * )....Vi . Mr . William

R . Elliot t Vic e President , Genera l Manage r o f Electri c Compan y Norther n Indian a Publi c Servic e Compan y 526 5 Hohma n Avenu e Hammond , I N4 632 0 Dea r Mr . Elliott : 

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I am writin g i n repl yt o you r Octobe r 12 , 1989 , and Decembe r 4 , 1989 , letter s t o m e regardin g th e Clea n Coa l Technology(CCT ) projec t t o b e conducte d a t th e Baill yGeneratin g Statio n Unit s 7 and 8 . I n you r letters , yo u aske d tha t w e provid e yo u wit hguidanc e and advic e o n th e statu s o f th e Baill yStatio n wit hrespec t t o th e Ne wSourc e Performanc e Standard s (NSPS ) and Preventio n o f Significan t Deterioratio n (PSD ) provision s o f th e Clea n Ai r Ac t shoul d th e projec t b e mad e permanent . Wher e authorit yt o administe r th e PS D progra mha s bee n delegate d t o th e state , whic hi s th e cas e i n Indiana , EP Anormall ywoul d defe r v to th e stat e t o provid e thi s advic e and guidance . However , bywa yo f thi s letter , w e ar e respondin g directl yt o yo u a s yo u requeste d becaus e o f th e importan t nationa l concern s presente d b yth e CC T program . Pleas e b e assure d tha t thi s respons e wa s coordinate d wit hbot hth e EP ARegiona l Offic e i n Chicag o and Indian a Departmen t o f Environmenta l Management . Th e definitio n o f "modification " fo r NSP S i s found a t 4 0 CF R Sectio n 60.14 . Base d o n th e representation s mad e i n you r Septembe r 14 , 198 9 and Decembe r 4 , 198 9 informatio n submitta l t o EPA , NSPS 1 woul d no t appl yt o th e Baill yStatio n a s a resul t o f th e CC T projec t becaus e 4 0 CF R Sectio n 60.14(e)(5 ) ha s an exemptio n fo r th e additio n o r us e o f an ysyste mo r devic e whos e primar y functio n i s th e reductio n o f ai r pollution . Thi s exemptio n clearl yapplie s t o th e situatio n presente d a t th e Baill yStation . Th e questio n o f whethe r PS D woul d appl ycanno t b e a s easil y addressed , a s ther e i s n o simila r exemptio n fo r "majo r modification " i n th e applicabl e regulation s (4 0 CF R Sectio n 51.166(b ) (2 ) (i ) and Sectio n 52.21(b)(2)(D) . Ove r th e pas t severa l months , EP Aha s hel d numerou s interna l meeting s t o discus s th e Clea n Ai r Ac t regulator yissue s raise d b yth e CC T program . A s a resul t o f thes e discussions , th e Agenc yha s decide d t o issu e an interpretiv e rulin g a s soo n a s possibl e t o provid e guidanc e o n th e definitio n o f a physica l o r operationa l chang e a s i t applie s t o ne wsourc e requirements . 

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### Jan17,90 ' 1 4 l o .00 4 P.0 6 Essentially , thi s rulin g woul dclarif ytha t i f a sourc e solel yadd s o r enhance s system s o r device s whos e primar yfunctio n isth e reductio no f ai r pollution , andtha t ar e determine dt o b e environmentall ybeneficial , suc hactivitie s woul dno t constitut e a physica l o r operationa l chang e triggerin g ne wsourc e requirements . Consequendy.,. . NSPS-,. . an dPSD . and ..nonattainmen t ne wsourc e review. , woul dnot--appl yt o .these , type s o f .aoti-vitie s . Thi s interpretiv e rulin g woul dinclud e permanen t a s wel l a s temporar yproject s unde r th e CC T program . However , i t woul dno t exten dt o project s tha t primaril yexten dth e lif e o f a plan t o r increas e capacit ya s wa s th e cas e i nEPA' s rulin g wit hrespec t t o Wisconsi nElectri c Powe r Company(WEPCO) . I ntha t ruling , EP Ahel dtha t th e lif e extensio n projec t a t WEPC O i s clearl ya modificatio nunde r ne wsourc e requirement s an dsubjec t t o bot hPS D an dNSPS . Th e interpretiv e rulin g woul dgenerall yagre e wit hth e approac hIndian a i s takin g wit hrespec t t o th e Baill yStation . Onc e th e stat e propose s a constructio npermi t fo r th e Baill y Station , w e wil l revie wth e permit , advis e Indian a o f thi s pendin g ruling , an dprovid e th e stat e wit ha clarificatio no f th e Agency' s polic yi nthi s regard . I believ e tha t EPA' s upcomin g rulin g wil l adequatel yaddres s th e situatio na t th e Baill yStation , I f yo u hav e anyfurthe r questions , pleas e contac t Scot t Throw e a t (202 ) 382-2810 . 

### Sincerely ,

# MjyfJcWf nS . Seitz , Directo r Stationar ySourc e Complianc e Divisio n Offic e o f Ai r Qualit yPlannin g an dStandard s

cc: G . Emison , OAQP S J . Calcagni , OAQP S D . Kee , Regio nV T . Method , IDE M