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# OAR Box 1778 Prepped by Ollie Stewart



### Document

Number: 

# 54 ) ll-B-29
Docket Number: 

# A-90-0 6

Printed 10/28/2008 9:50:53 AM Sheet 54 of 276P. 2

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MFMORANDU

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UNITE D STATE S ENVIRONMENTA L PROTECTIO N AGENC Y Offic e o f Ai rQualit yPlannin g an d Standard s ^*~~— Researc h Triangl e Park , Nort h Carolin a W2)X~~rr~if^%\ fft V f ir S f l MA Y 2 5 199

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Lette r t o JohnBoston , W i Geral dA . Emison , D Offic e o f Ai r Qual i Electri c PdWeFCompan y (WEPCO )

fstandVd s (MD-10 ) William G . Rosenberg , Assistan t Administrato r fo r Ai r an

dRadiatio n(ANR-443 )

Th e attache dlette r t o JohnBosto no f WEPC O provide s th e compan y wit h th e Environmenta l Protectio nAgency' s (EPA's ) respons e t o th e cour t decisio n i nthe WEPC O case . A s yo uwil l recall , althoug hth e WEPC O issu e ha s come t o b e associate dwit hth e applicabilit y o f th e Agency' s ne w

sourc e review

program t o utilit y

companie s als o subjec t t o aci d rai nrequirements , the-origina l cas e involve dth e replacemen t o f a majo r componen t a t th e Por t Washingto npowe r plan t owne db y

WEPCO . Th e WEPC O sue don EPA' s determinatio ntha t th e replacement , an

d othe r associate dchanges , mad e th e plan t subjec t t o EPA' s new sourc e revie w

requirements . Th e cour t uphel d EPA' s determinatio ni n larg e part , bu t conclude dtha t th e Agency' s metho do f determinin g whethe r th e WEPC O actio nwa s subjec t t o th e preventio no f significan t deterioratio n(PSD ) rule s neede dt o b e revised . Th e cour t foun dtha t i n calculatin g whethe r th e particula r kin do f chang e woul d increas e emissions , EPA shoul dmak e a projectio no f th e plant' s actua l emission s i n th e future , rathe r tha nassumin g tha t th e plan t woul doperat e a t it s maximu m capacity . Th e lette r t o Mr . Bosto nset s fort hth e wa y i n whic hEP A

ha s calculate d th e WEPC O plant' s "estimate d futur e actua l emissions. " I n makin g thi s calculatio nw e hav e relie d on th e utility' s ow ndat a concernin g th e plan t s historica l operation s an d th e company' s projection s o f th e plant' s futur e operatio nan

d emission s rates , a s reflecte di n paper s file dwit hth e Wisconsi n Publi c Utilit y

Commissio nan

d th e Wisconsi nDepartmen t o f Natura l Resources . Th e resul t i s tha t WEPC O i s subjec t t o PS D bu t onl y fo r nitroge noxide s (N0 V ) . Th e permi t wil l requir e th e same enforceabl e limit s o n th e fue l sulfu r conten t an

d particulat e control s a s thos e propose db y WEPCO . I t wil l no t restric t futur e operatin g levels . Wit hregar dt o th e new sourc e performanc e standard s (NSPS) , WEPC O propose s t o avoi dtriggerin g NSP S fo r th e reconstructio nby furthe r controllin g two unit s t o a leve l sufficien t t o offse t projecte d emission s increases . Uni t 5 i s no t bein g renovate da t thi s time . I f in th e futur e i t i s renovated , i t woul db e subjec t t o NSPS . We hav e discusse d thi s wit hth e compan y and findthei r proposa l acceptable .P. 4

. V

O nApri l 6 , m y staf f me t wit hWEPC O representative s t o discus s ou r revise d applicabilit y determination . O nApri l 10 , WEPC O informe d u s tha t they woul d no t challeng e suc hanapplicabilit y determinatio nan

d woul d procee d wit h th e necessar y

PS D permi t fo r NO i f th e Stat e found tha t n o furthe r N0 X contro l i s necessary . A PS D permi t applicatio nfo r N0 Xha s alread y bee n submitte d b

y WEPC O t o th e State . Th e Stat e ha s agree d tha t th e Por t Washingto nboilers ' characteristicall y low emission s o f M L represen t bes t availabl e contro l technolog y fo r th e renovatio nproject , th e WEPC O i s anxiou s t o receiv e th e attache d lette r from : EPA s o tha t i t canprocee d wit hth e processin g an

d issuanc e o f th e Stat e permit . Bot hWEPC O and Wisconsi nar e awar e of , an d concu r with , th e basi s fo r ou r revise d determinatio nan d hav e indicate d n

o disagreement . Thi s lette r wil l allow

WEPC O and th e Stat e t o proces s th e PS D permit . Attachmen t