P. 1 

# OAR Box 1778 Prepped by Ollie Stewart



## Document

Number: 

# 34 ) ll-B-9 Docket Number: 

# A-90-0 6

Printed 10/28/20089:50:52 AM Sheet 34 of 276P. 2 

# m 

# m^ C 3 ^ V 

## II-B- 9



# rwXu^^i i

NOTE : Part s o f thi s ite m ar e no t legible .P. 3 

# A-fo-ot, 3T-Q-CI

NOTE : Asigned cop yo f thi s ite

mwa s no t available .

### 2. 5 

### r4-9o-ob 

### ENVIRONMENTA L PROTECTIO N AGENC Y 

## w 

# 1 

# 1

MEMORANDUM SUBJECT : FROM : TO : 

# EPA AIRPOCKE T Cit yUtilities , Springfield , Missouri : Reconstructio n Directo r Divisio no f Stationar ySourc e Enforcemen t Sar i J . Stephenson , Directo r Enforcemen t Divisio n- P.egio n vl l 

## ** ?

^ . x. 

## Thi s i s i nrespons e t o a reques t submitte d t o you r offic e b yCit yUtilities , Springfield , Missour i pursuan t t o 4 0 CF R §50. 5 concernin g th e Jane s Rive r Powe r Plan t Uni t Ho . 4 boiler . Cu r determinatio ni nthi s cas e relie s heavil yupo n tha informa
tio nsubmitte d t o thi s offic e b yCit yUtilities , date d Decembe r 16 , 1977 . W e hav e evaluate d th e informatio n an d i t i s ou r conclusio n tha t thi s facilit yi s no t a reconstructe d facilit ypursuan t t o 4 0 CF R560.1 5 and i s therefor e no t subjec t t o th e ne w sourc e performanc e standard s (NSPS ) fo r fossi l fuel-fire d stea. a generators . Thi s determinatio n i s base d solel yo n th e fixe d capita l cos t criteri a establishe d i n4 0 CF R§60.1 5 (b)(1) . Ou r analysi s show s that , unde r the iiios t conservativ e conditions , th e capita l expenditur e estimate d fo r th e rehabili
tatio nwil l onl yapproac h4 3 percen t o f th e cos t fo r a comparabl e entirel yne wfacility . Sinc e thi s regulatory criteri a ha s no t bee nsatisfied , w e hav e no t investigate d th e economi c o r technologica l feasibilit yo f meetin g th e USPS . A s mentione d earlier , thi s determinatio ni s base d almos t entirel yo nth e informatio nsubmitte d t o thi s offic e b yCit yUtilities . Fo r thi s reason , I woul d urg e yo u i n you r repl yt o Cit yUtilitie s to - requir e themt o submi t th e actua l cos t dat a fo r th e rehabilitatio no f thi s facility , upo nit s completion . . Thi s wil l serv e a s a fina l evaluatio n o f th e data , sinc e some o f th e dat a i s base d o nveryrough estimates . I nregar d t o th e Cit yUtilitie s resolutio n t o ceas e operatio no f Uni t Mo . 3 a t th e en d o f 2 0 additiona l year s o f operation , >

* fcI S nnrKsnogfi^r- yt*n pnr^l.^o rt-hi erafT'lvfri^ l \

* »P. 5



## sinc e ou r evaluatio nan d determinatio n i s no t base d o nthe exclusio no f an

ycost s estimate d b yCit yUtilities . I f yo u h3v e an

yadditiona l question s o r comment s concer ning thi s determination , pleas e contac t RichBiond i (755-2564 ) o f m ystaff . Edwar d E . Reic h cciJac k Farme r - SD BP. 6

I ' - \ C *

•'!EWSOURC E PERFORMANC E STA.NDARC S i ;

- D C E : : ;" ; 0 . I 5 )

r h e purpos e o f th e reconstructio nregulation s i s t o recogniz e tha t replacemen t o f man yo f th e compone nt s o f a facilit yca nb e substantiall yequivalen t t o totall y replacin g th e facilit ya t th e en d o f it s usefu l lif e wit ha newl yconstructe dfacility . Fo r thi s reason , th e reconstructio n rcnula t ioi. s *r e intende dc o appl ywhe na nexistin g facility' s component s are

replace dt o suc ha nexten t tha t i t i s techno - locicall yan d economicall yfeasibl e fo r th e facilit yt o compl y wit hNSP S an d therefor e becom e a affecte d facility .
Sectio n60.15(d ) o f th e regulation s require s a nowne r o r operato r o f a nexistin g facility , whic hcoul d b e subjec t : o NSPS , wh o propose s t o replac e compone nt s an d th e fixe d ca.ita l cos t o f th e ne wcomponent s exceed s 50 % o f th e fixe d capita l cos t t o construc t a ne wfacilit ycomparabl e t o th e reconstructe d affecte dfacility , t o notif yth e Administrato r o f th e propose dreplacement . TH i s notificatio nmus t b e postmarke d 6 0 day s (o r a s soo na s practicable ) befor e constructio ni s commenced .
Th e Administrato r i s the nrequire dt o mak e a determinatio nwithi n3 0 day s o f reciep t o f sufficien t informatio nP. 7

- , ; rat i ) :

•
i : ' . l . )

V

i > Th o rixodcopiia l cos t o f the - replacement s i n compariso n t o th e fixe d capita l cos t tha t woul d b e require d t o construc t a ne wfacilit ycomparabl e t o th e reconstructe d affecte d facility ;

(2 ) Th e estimate d lif e o f th e facilit yafte r th e re o 1 acements • compare d t o th e lif e o f a ne wfacilit ycomparabl e t o th e reconstructe d affecte d facility ;

(3 ) Th e exten t t o whic hth e compone nt s bein g replace d caus e o r contribut e t o th e emission s fro mth e facility ; an d

(h) An yeconomi c o r technica l limitation s o n complianc e wit happlicabl e standard s o f performanc e whic h ar e inheren t inth e propose d replacements .

B y examinin gth e criteri a above , i t ca nb e see n tha t determination s wil l nee d t o b e mad e o na stric t cas e b y cas e examinatio no f th e fact s surroundin geac hrequest . Ver y detaile dspecifi c guidanc e ca nno t b e formulate dt o handl e th e varie dcase s tha t wil l arise . 

# L".•'.-.•:• :•-.-1 , <*••:,.'

i i • • iri'.i
- tha t ..-!. ' fee l nee dt o b e i. : s. r !.• s -, e i ' • I ) .-.:• . - i t ^ : • : Mt i • i t e - i reconstructe daffecte d

: - * c i 1 i t v. .

1 r . i i {2 1 :-Or.,i

i i - include d i n fixe d capita l cost ? I t i s i n tru-s e t.v o area s tha t i nmos t case s th e determinatio n
•.- . il ! b e made . Asourc e wil l eithe r b e applicabl e o r no t base d o nth e cost s associate d wit hthes e tw o area s an d whethe r o r no t thes e cost s represen t a 5 0 ? replacemen t value .
Wha t i s a reconstructe d affecte d facility ?

Reconstructe d affecte d facilit yi s define d by specifi c section s o f th e regulation s i neac hsubpar t o f th e appropriat e NSP S category . Th e sectio nnumber s ar e indicate d o nth e attache d list . Fo r example , a fossi l fue l fire d stea mgenerato r i s define d a s a furnac e o r boiler . Therefore , i nmakin g a determinatio n i nthi s category , cost s woul d onl y b e associate d wit htha t uni t an d no t th e turbine , stack , coa l handlin g equipment , building , an d othe r material s an d equipmen t no t directl yconnecte d t o o r considere da par t o f th e boile r o r furnace .

Appropriat e definition s fo r unresolve dcategorie s ar e bein gdeveloped . I f needed , separat e reconstructe d affecte dfacilit y definition s ma y b e mad e fo r certai n categorie s o f affecte dfacilitie s a s specifi c case s com e i nt o view .

'••iP. 9



### ' * r

### - • ' • ' s 

### [ • ' c i u de J i nf i xe ' i capita l c o ^ l ?

, " r 

### ixt'c : Ciiiiit.i l cijst " i s define di nSection ' 60.15(c ) a - ; th e c ,T

p i r a I neede dr o provid e al l th e depreciabl e con - ponents. " I t i s recommende dtha t th e followin g formul a b e use da s a guid e fo r determinin nthes e costs .

R+ L > C/ 2
where : R= th e tota l cos t o f replacemen t parts , equipment ,

an dmaterial s require dt o reconstruc t th e reconstructe daffecte dfacility .
L = th e tota l cos t o f al l labo r require dt o remov e th e ol d part s an d facility , t o prepar e th e ol dsit e fo r th e reconstruction , t orefurbis h th e ol dparts , an d t o replac e th e ne w part s o f t h e reconstructe daffecte dfacility . C = th e tota l cost s o f th e part s an dlabo r require d t oinstal l a ne w

facilit y

whic hi s comparabl e t oth e reconstructe daffecte dfacility .

i 

### Car e shoul db e exercise dt o includ e onl y thos e cost s associate dwit hth e reconstructe daffecte dfacility . Fo r example , part s whic har e no t covere db y thi s definitio nar e no t include di ndeterminin greconstructi oncosts .

• •.•••v f 

### tma-smwtfMM M i£0^*&£±>^P.1 0

> : • . MI .:. : J < • • : . •' • ' . e t e ' " ••". : ne t ne C' i •- .
' - i - I < ' t i :

r. •• r e c •, n-

. t . " j c t e d t • • e -lea n. ; i :--;ir
- i ha t ?n s c • > i . •••. n

r e :' • a v' j i o r thi s nur ;\ ) s o . eas e not e tha t co^t s associate dwit hth e purchas e an dinstallatio no f a i r pollutio ncontro l equipmen t ^ r e no t considere di nestimatin g t h e cos t o f a comparabl e ne w facilit y

unles s tha t contro l equipmen t i s require da s par t o f th e proces s (tha t is , produc t recovery ) .

I nth e fina l analysis , th e 50 ' 4 replacemen t criteri a i s no t th e onl y basi s fo r determination , sinc e th e Administrato r wil l conside ral l technica l an deconomi c limitation s tha t t h e facilit y

ma y hav e i ncomplyin gwit hth e applicabl e standard s o f performanc e afte rth e propose dreplacements .



### •i

i/Z*.

## >£0&~'&&.^

• •

4 

## '&a__w

_ _ ^ 

# 7 

# ______WM

i

. *^ _ rc^^!F*-v , ^jH555^^?'^pwC983HKBn B

i :

• r i .

.J 

### K L M 

### N : . : M.:::•:.:-• •



### 6 0 .6 0 unresolve d unresolve d 60.91(a ) 60.10 0 60.111(a ) 60.12 0 60.131(b,c,d ) 60.141(a ) P.1 1



## Q R S T U V . W X Y Z A A 60.15 0 60.161(b,c,f,g ) 60.171(b,c ) 60.181(b,d,e,f,g,h ) 60.191(b,d ) unresolved ' unresolve d unresolve d unresolve d 60.241(a ) 60.251(e,f,g,h,i ) 60.261(a f 

## k ) 60.271(a,b )