BEFORE THE NEBRASKA DEPARTMENT OF ENVIRONMENTAL QUALITY 

IN THE CASE OF 

NEBRASKA PUBLIC POWER DISTRICT, 

SHELDON STATION, 

Respondent. 

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I. INTRODUCTION 

Case No. 3336 

CONSENT ORDER 

1. The Nebraska Department of Environmental Quality ("NDEQ") and Respondent 

Nebraska Public Power District ("NPPD") Sheldon Station, Facility# 33563, voluntarily 

enter into this Consent Order. This Consent Order establishes a schedule for changes to 

NPPD's Sheldon Station facility necessary to attain compliance with the 2010 National 

Ambient Air Quality Standard ("NAAQS") for one-hour sulfur dioxide ("one-hour S02") 

promulgated by the Environmental Protection Agency ("EPA") pursuant to 42 U.S.C. 

§7409. 

II. JURISDICTION 

2. The NDEQ is the agency of the State of Nebraska charged with the duty pursuant to Neb. 

Rev. Stat. § 81-1504(1) (Reissue 2014) of exercising exclusive general supervision, 

administration and enforcement of the Nebraska Environmental Protection Act. This 

Consent Order is issued under the authority vested in the Director of the NDEQ by Neb. 

Rev. Stats. §81-1504(25) and §81-1507(1). 

3. NPPD agrees to undetiake all actions required by the terms and conditions of this 

Consent Order. NPPD a!:,:rrees that it will not contest the basis or validity of this Consent 

Order in any proceedings by the NDEQ to enforce this Consent Order. 

4. NPPD waives its rights to receipt of a complaint and all notice and hearing requirements 

provided in Neb. Rev. Stat. § 81-1507. 
III. PARTIES 

5. This Consent Order is binding on the NDEQ and NPPD and their successors and assigns. 

6. NPPD shall ensure that any contractors, sub-contractors and representatives 

implementing any provision of this Consent Order receive a copy of this Consent Order. 

NPPD shall be responsible for its noncompliance with this Consent Order. 

7. NPPD admits to the jurisdictional allegations and agrees not to contest, but does not 

admit to, the findings of fact and conclusions of law referenced within Section V herein. 

IV. LIABILITY 

8. Nothing in this Consent Order shall be construed as an admission of liability or 

acknowledgement of any liability, wrong doing or unlawful conduct by NPPD . 

V. FINDINGS OF FACT AND CONCLUSIONS OF LAW 

Clean Air Act 

9. The federal Clean Air Act ("CAA'') requires EPA to publish regulations prescribing a 

NAAQS for specified pollutants. 42 U.S.C. §7409(a). 

One-Hour S02 Status 

10. EPA revised the NAAQS for S02 on June 22, 2010. 75 Fed. Reg. 35520 (June 22, 2010). 

11. States were directed to submit their designations by June 2, 2011. 75 Fed. Reg. at 35585. 

12. Nebraska Governor Dave Heineman submitted Nebraska's designation recommendation 

for the 1-hour Sulfur Dioxide (SOz) NAAQS on June 1, 2011. Governor Heineman 

recommended an unclassifiable designation for the entire state of Nebraska. 

13. EPA did not initially promulgate a designation for any areas in Nebraska. 

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14. Pursuant to Neb. Rev. Stat. 81-1505(1) and (12), the Nebraska Environmental Quality 

Council adopted the revised NAAQS for S02 in Title 129, Nebraska Air Quality 

Regulations, Chapter 4, Section 002, effective December 9, 2013. 

15. On May 13, 2014, EPA proposed the Data Requirements Rule for the 1-Hour Sulfur 

Dioxide (S02) Primary National Ambient Air Quality Standard (NAAQS) ("Data 

Requirements Rule"). 79 Fed. Reg. 27446 (May 13, 2014). The Data Requirements Rule 

contained timeframes and processes for promulgation of designations. 

16. EPA released a Memo ("Memo") which contains interim deadlines for states to provide 

updated recommendations and supporting information to assist EPA in its designations. 

Memo from Stephen D. Page to Regional Air Division Directors, Regions 1-10, Updated 

Guidance for Area Designations for the 2010 Primary Sulfur Dioxide National Ambient 

Air Quality Standard (March 20, 2015). 

17. Due to the abbreviated time frames allowed for designations under the EPA Memo, areas 

that do not currently have S02 monitors installed must base their designations on air 

quality modeling conducted pursuant to a draft protocol, S02 NAAQS Designations 

Modeling Technical Assistance Document issued by EPA in March 2011 and 

supplemented in December 20 13 ("Modeling TAD"). 

Sheldon Station 

18. NPPD's Sheldon Station is a coal-fired electric generating unit ("EGU") located near 

Hallam, Nebraska. Sheldon Station has two units with a combined generation capacity of 

approximately 225 megawatts. 

19. Sheldon Station is a major source of air emissions under the Title V program and 

currently holds a Class I Operating Pennit issued by Lincoln-Lancaster County Health 

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Department (LLCHD). Sheldon Station emits or may emit air pollutants including but 

not limited to S02. 

20. NPPD's Sheldon Station is one of the specified sources for which EPA requires 

promulgation of a designation by July 2, 2016. 

21. NPPD intends to conduct air modeling pursuant to the Modeling TAD. 

NDEQ Authority 

22. Neb. Rev. Stat. 81-1506(2)(b) makes it unlawful to emit air pollutants that cause or 

contribute to a violation of an air quality standard established by the Nebraska 

Environmental Quality Council. 

23. The Director ofNDEQ is authorized pursuant to Neb. Rev. Stat. §81-1504(7) to issue this 

Consent Order requiring changes at NPPD's Sheldon Station to attain the NAAQS for 

one-hour S02 by the dates set forth in Paragraph 26. 

24. This Consent Order sets out a schedule for NPPD to make changes to its Sheldon Station 

units to meet the NAAQS. 

25. This Consent Order shall have the force and effect of a final order of the Director of the 

NDEQ issued pursuant to the Nebraska Environmental Protection Act. 

VI. COMPLIANCE ORDER 

26. NPPD agrees to attain compliance with the 2010 one-hour S02 NAAQS by performing 

the following activities at Sheldon Station: 

a. Sheldon Station Unit 1: NPPD agrees to sufficiently extend the stack height to the 

extent necessary to model attainment with the 2010 one-hour S02 NAAQS based 

on actual hourly emission rates while burning fuel under the existing pennit, such 

project to be completed by July 2, 2016, subject to Section VIII. 

b. Sheldon Station Unit 2: NPPD retains an option to switch coal fuel for Unit 2 to 

hydrogen and other gaseous fuel. In such case, NPPD shall exercise said option 

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by informing NDEQ in writing by July 1, 2016, of its decision and will also 

present infonnation that it entered into binding and enforceable contracts to 

construct the necessary changes to Unit 2 to accommodate the switch to hydrogen 

and other gaseous fuel, which fuel switch will be completed on or before 

December 31, 2021, subject to Section VIII. 

In the event NPPD elects not to exercise the above option, NPPD shall inform the 

NDEQ on or before July 1, 2016, that NPPD will sufficiently extend the stack 

height to the extent necessary to model attainment with the 2010 one-hour S02 

NAAQS based on actual hourly emissions rates while burning fuel under the 

existing permit. Such project will be completed on or before July 2, 2017, subject 

to Section VIII. 

27. NPPD shall submit a report by July 1, 2016, describing the then current status of its 

performance of activities under Paragraph 26, above. 

28. In consideration of this Order, NDEQ shall provide a copy of this Consent Order to the 

Environmental Protection Agency and request that the area around Sheldon Station 

remain "unclassifiable" for one hour S02 NAAQS while and until this Order has been 

completely and satisfactorily performed by NPPD. 

29. NPPD shall conduct base-case modeling scenario in accordance with EPA's Modeling 

TAD associated with the Data Requirements Rule after completion of the project to 

ensure compliance with the standards. Based on the NDEQ's guidance and protocol 

approval specifically for the Sheldon S02 modeling, NPPD will run the AERMOD model 

and prepare a summary of results, along with spreadsheets and figures that convey the 

concentrations predicted by the model, and add the maximum 1-hour design 

concentration (maximum 99th percentile average over 3 years of meteorology, of any 

receptor) to the background concentration of 9 fJg/m3 agreed upon by NDEQ and EPA 

Region 7. 

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30. All terms and references used in this Consent Order shall have the same meaning as in 

NPPD's current Construction and Operating Permits. No other tetms or conditions of the 

Permits are affected by this Consent Order. 

31. Information required to be submitted under this Consent Order shall be sent to: 

ForNPPD: 

Joseph L. Citta 

P.O. Box 499 

1414 15111 Street 

Columbus, NE 68602 

(402) 563-5355 

jlcitta@nppd.com 

ForNDEQ: 

Air Quality Division 

Nebraska Department of Enviromnental Quality 

PO Box 98922 

Lincoln, NE 68509-8922 

( 402) 471-4210 

VII. COMPLIANCE WITH OTHER LAWS 

32. NPPD shall perform all actions required by this Consent Order in accordance with all 

applicable local, state and federal laws, regulations and permits. 

VIII. FORCE MAJEURE, EXCUSABLE DELAY 

33. Force majeure for purposes of this Consent Order is as set forth in NPPD's various 

contracts related to any NPPD activity described in paragraph 26, above. In addition, 

NPPD shall be excused from any delays in its perfonnance hereunder, or failure to 

perform, caused in whole or in part by any act of God, the order of any court or agency 

having jurisdiction, or caused in whole or in pmi by any of NPPD's contractors, suppliers 

or vendors. NPPD shall exercise best eff01is to anticipate any potential force majeure 

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events and address the potential effects as the event is occurring, and following the event, 

to ensure that any delay is minimized to the greatest extent practicable .. 

34. If any event occurs that may delay the perfonnance of any obligation under this Consent 

Order, whether or not caused by a force majeure event, NPPD shall notify the NDEQ by 

telephone within three business days of learning of the event. Within 10 business days of 

learning of the event, NPPD shall provide in writing the reasons for the delay, the 

anticipated duration of the delay, all actions taken or to be taken to prevent or minimize 

the delay, and a schedule for implementation of any action. 

35. In addition to force majeure, NDEQ, in its discretion, may agree to an extension of the 

time for performance of any obligation under this Consent Order caused by any other 

event. 

IX. RESERVATION OF RIGHTS 

36. Nothing in this Consent Order shall be construed to limit the power and authority of the 

NDEQ to take or order any action necessary to protect public health, welfare or the 

environment, or to enforce any provision of the Nebraska Environmental Protection Act 

and any rules, regulations, orders or permits issued pursuant to the Nebraska 

Environmental Protection Act. 

X. NEGATION OF AGENCY RELATIONSHIP 

37. Nothing contained in this Consent Order shall be construed to create, either expressly or 

by implication, the relationship of agency between the NDEQ and NPPD. 

XI. REOPENING, AMENDING AND MODIFYING 

38. This Consent Order may be modified and amended in writing by mutual agreement of the 

NDEQ and NPPD. 

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XII. EFFECTIVE DATE 

39. This Consent Order shall become effective on the date it is signed by the Director of the 

NDEQ or his designee. 

XIII. SEVERABILITY 

40. If any provision or authority of this Order or the application of this Order to any party or 

circumstances is held by any judicial or administrative authority to be invalid, the 

application of such provisions to other parties or circumstances and the remainder of the 

Order shall remain in force and shall not be affected thereby. 

XIV. SIGNATURES 

For NPPD: The undersigned representative of NPPD certifies that he is fully authorized to 

enter into the terms and conditions of this Consent Order and bind NPPD. 

By: Thomas J. Kent 

Title: Vice President & Chief Operating Officer 

Date: September 18, 2015 

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Environmental Quality 

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