ARI ZONA DEPARTMENT OF ENVIRONMENTAL QUALITY

AIR QUALITY CLASS I, TITLE V PERMIT

COMPANY: Salt River Project

FACILITY: C oronado Generating Station

PERMIT #: 52639 DATE ISSUED: December 6, 2011 EXPIRY DATE: December 6, 2016

SUMMARY

This Class I, Title V operating permit renewal is issued to Salt River Project (SRP), the Permittee, for the continued operation of their Cor onado Generating Station located in Apache County, six miles northeast of St. Johns, Arizona off U.S Highway 191. This is a renewal of Air Quality Permit #30732.

SRP Coronado operates two coal-fired electric utility steam generating units. The two units have a combined electrical output capacity of 912 gross mega watts (MW). Electrostatic precipitators and wet flue gas desulfurization systems are operated to cont rol particulate matter emissions and sulfur dioxide emissions, respectively. Low-NO

x Burners and Overfire Air are used to control nitrogen oxide emissions. Beginning on or before January 1, 2012, calcium brom ide will be applied to the coal to control mercury emissions. Beginning on or before June 1, 2014, Selective Catalytic Re duction (SCR) will be installed on Unit 2 to provide additional control of nitrogen oxide emissions.

An auxiliary boiler is used to provide auxiliary st eam during startup if main boiler steam or turbine extraction steam is unavailable. Other operations at the plant include a main po wer building, coal mixing facilities, coal and ash handling facilities, ash dispo sal area, limestone handling equipment, process water treatment facilities, a forty-three mile railroad spur, water storage reservoirs, a 330 acre evaporation pond for non-recoverable waters, mechanically induced draft cooling towers, 500 kV and 69 kV switchyards and water supply from satellite well fields. The power plant commenced construction on July 25, 1974.

This permit is issued in accordan ce with Title 49, Chapter 3 of the Arizona Revised Statutes. All definitions, terms, and conditions u sed in this permit conform to t hose in the Arizona Administrative Code R18-2-101 et. seq. (A.A.C.) and 40 Code of Federal Regulati ons (CFR), except as otherwise defined in this permit. All terms a nd conditions in this permit are enforceable by the Administrator of the U.S. Environmental Protection Agency (EPA), except those terms and conditions that are specifically identified as “State Enforceable Only.”TV Permit Renewal Number 52639 Pa ge 2 of 79 December 06, 2011 SRP – Coronado Generating Station TABLE OF CONTENTS

ATTACHMENT “A”: GENERAL PROVISION....................................................................................3

I. PERMIT EXPIRA TION AND RENE WAL....................................................................................3

II. COMPLIANCE WITH PERMIT CONDITIONS ...........................................................................3 III. PERMIT REVISION, REOPENING, REVOCATION AND REISSUANCE, OR

TERMINATION FOR CAUSE.......................................................................................................3

IV. POSTING OF PERMIT........................................................................................................

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XI. OTHER PERIODIC ACTIVITIES......................................................... ... ....................................68 V. FEE PAYMENT ...............................................................................................................

............... VI. ANNUAL EMISSION INVENTORY QUESTIONNAIRE ...........................................................

VII. COMPLIANCE CERTIFICATION ................................................................................................ VIII. CERTIFICATION OF TRUTH, ACCURACY AND COMPLETENESS .....................................

IX. INSPECTI ON AND ENTRY .....................................................................................................

..... X. PERMIT REVISION PURSUANT TO FEDERAL HAZARDOUS AIR POLLUTANT

STANDARD....................................................................................................................................

XI. ACCIDENTAL RELEASE PROGRAM......................................................................................... XII. EXCESS EMISSIONS, PERMIT DEVIATIONS, AND EMERGENCY REPORTING ............... XIII. RECORD KEEPING REQUIREMENTS ..................................................................................... XIV. REPORTING REQUIREMENTS .................................................................................................

XV. DUTY TO PROVIDE INFORMATION.......................................................................................

XVI. PERMIT AMENDMENT OR REVISION....................................................................................

XVII. FACILITY CHANGE WITHOUT A PERMIT REVISION......................................................... XVIII. TESTING REQUIREMENTS ...................................................................................................

.... XIX. PRO PERTY RIGHTS.........................................................................................................

........... XX. SEVERAB ILITY CLAUSE ......................................................................................................

.... XXI. PERMIT SHIELD...........................................................................................................

............... XXII. PROTECTION OF STRATOSPHERIC OZONE .........................................................................

ATTACHMENT “B”: SPECIFIC PR OVISIONS ....... ........................................................17

I. FACILITY WIDE LIMITATIONS........................................................................................... .....17

II. UNITS 1 AND 2 BOILERS ...... ................................................................................................ ....17

III. AUXILIARY BOILER..............

........................................................................................... . ........50

IV. INTERNALCOMBUSTIONENGINES.......................................................................... ..............53

V. COAL HANDLING.................................................................................................... ........... ........57

VI. LIMESTONE HANDLING....... ......................

.......................................................... .................. ..59

VII. FLY ASH HANDLING

.................................. ............................ .................. . ......................... .......62

VIII. COOLING TOWERS 1 AND 2.....................

...................... ......................... .................... ........... ..63

IX. USED OIL SPECIFICATION.................................................................. .. ................................. ..65

X. FUGITIVE EMISSIONS.......................................................................... ... ............................. .....66

XII. COAL ADDITIVE SODA ASH SILO............

.................................................. .............................72

ATTACHMENT “C”: EQUIPMENT LIST.... .......................................................................................74

ATTACHMENT “D”: PHASE II ACID RA IN PROVISIONS.............................................................78TV Permit Renewal Number 52639 Pa ge 3 of 79 December 06, 2011 SRP – Coronado Generating Station 

### ATTACHMENT “A”: GENERAL PROVISIONS

Air Quality Control Permit No. 30732

for Salt River Project, Coronado Generating Station

I. PERMIT EXPIRATION AND RENEWAL [ARS § 49-426.F, A.A.C. R1 8-2-304.C.2, and -306.A.1]

A. This permit is valid for a period of five years from the date of issuance.

B. The Permittee shall submit an application for re newal of this permit at least 6 months, but not more than 18 months, prior to the date of permit expiration.

II. COMPLIANCE WITH PERMIT CONDITIONS [A.A.C. R18-2-306.A.8.a and b]

A. The Permittee shall comply with all conditi ons of this permit including all applicable requirements of the Arizona air quality statutes and air quality rules. Any permit noncompliance constitutes a violation of the Arizona Revised Statutes and is grounds for enforcement action; for permit termination, re vocation and reissuance, or revision; or for denial of a permit renewal application. In addition, noncompliance with any federally enforceable requirement constitutes a violation of the Clean Air Act.

B. It shall not be a defense for a Permittee in an enforcement action that it would have been necessary to halt or reduce the permitted activity in order to maintain compliance with the conditions of this permit.

III. PERMIT REVISION, REOPENING, REVOCATION AND REISSUANCE, OR

TERMINATION FOR CAUSE [A.A.C. R18-2-306.A.8.c, -321.A.1, and -321.A.2]

A. The permit may be revised, reope ned, revoked and reissued, or terminated for cause. The filing of a request by the Permittee for a permit revision, revocation and reissuance, termination, or of a notification of planned changes or anticipated noncompliance does not stay any permit condition.

B. The permit shall be reopened and revised un der any of the following circumstances:

1. Additional applicable requirements under th e Clean Air Act become applicable to the Class I source. Such a reopening shall only occur if there are three or more years remaining in the permit term. Th e reopening shall be completed no later than 18 months after promulgation of th e applicable requirement. No such reopening is required if the e ffective date of the requirement is later than the date on which the permit is due to expire, unl ess an application for renewal has been submitted pursuant to A.A.C. R18-2- 322.B. Any permit revision required pursuant to this subparagraph shall comply with the provisions in A.A.C. R18-2- 322 for permit renewal and shall reset the five-year permit term.

2. Additional requirements, including excess emissions requirements, become applicable to an affected source under the acid rain program. Upon approval by the Administrator, excess emissions offset plans shall be deemed to beTV Permit Renewal Number 52639 Pa ge 4 of 79 December 06, 2011 SRP – Coronado Generating Station incorporated into the Class I permit.

3. The Director or the Administrator determines that the permit contains a material

mistake or that inaccurate statements we re made in establishing the emissions standards or other terms or conditions of the permit.

4. The Director or the Administrator determ ines that the permit needs to be revised or revoked to assure compliance with the applicable requirements.

C. Proceedings to reopen and reissue a permit, in cluding appeal of any final action relating to a permit reopening, shall follow the same pr ocedures as apply to initial permit issuance and shall, except for reopenings under Cond ition III.B.1 above, affect only those parts of the permit for which cause to reopen exists . Such reopenings shall be made as expeditiously as practicable. Permit reopenings for reasons ot her than those stated in

Condition III.B.1 above shall not result in a resetting of the five-year permit term.

IV. POSTING OF PERMIT [A.A.C. R18-2-315]

A. The Permittee shall post this permit or a certificate of permit issuance where the facility is located in such a manner as to be clearly visible and accessible. All equipment covered by this permit shall be clearly marked with one of the following:

1. Current permit number; or

2. Serial number or other equipment ID number that is also listed in the permit to identify that piece of equipment.

B. A copy of the complete perm it shall be kept on site.

V. FEE PAYMENT [A.A.C. R18-2-306.A.9 and -326]

The Permittee shall pay fees to the Director pur suant to ARS § 49-426(E) and A.A.C. R18-2-326.

VI. ANNUAL EMISSION INVENTORY QUESTIONNAIRE [A.A.C. R18-2-327.A and B]

A. The Permittee shall complete and submit to th e Director an annual emissions inventory questionnaire. The questionnaire is due by March 31st or ninety days after the Director makes the inventory form available each year , whichever occurs later, and shall include emission information for the previous calendar year.

B. The questionnaire shall be on a form provided by the Director and shall include the information required by A.A.C. R18-2-327.

VII. COMPLIANCE CERTIFICATION [A.A.C. R18-2-309.2.a, -309.2.c-d, and -309.5.d]

A. The Permittee shall submit a compliance certifi cation to the Director semiannually, which describes the compliance status of the source with respect to each permit condition. The

first certification shall be submitted no later than May 15 th , and shall report the compliance status of the source during the period between October 1 st of the previous year and March 31 st of the current year. The sec ond certification shall be submitted no

later than November 15 th , and shall report the compliance status of the source during theTV Permit Renewal Number 52639 Pa ge 5 of 79 December 06, 2011 SRP – Coronado Generating Station period between April 1 st and September 30 th of the current year.

The compliance certifications shall include the following:

1. Identification of each term or condition of the permit that is the basis of the certification;

2. Identification of the methods or ot her means used by the Permittee for determining the compliance status with each term and condition during the certification period.

3. The status of compliance with the term s and conditions of this permit for the period covered by the certification, based on the methods or means designated in

Condition VII.A.2 above. The certificati ons shall identify each deviation and take it into account for consideration in the compliance certification;

4. For emission units subject to 40 CFR Part 64, the certification shall also identify as possible exceptions to compliance any period during which compliance is required and in which an excursion or exceedance defined under 40 CFR Part 64 occurred;

5. All instances of deviations from pe rmit requirements reported pursuant to Condition XII.B of this Attachment; and

6. Other facts the Director may require to determine the compliance status of the

source.

B. A copy of all compliance certifications shall also be submitted to the EPA Administrator.

C. If any outstanding compliance schedule exists , a progress report shall be submitted with the semi-annual compliance certificati ons required in Condition VII.A above.

VIII. CERTIFICATION OF TRUTH, ACCURACY AND COMPLETENESS [A.A.C. R18-2-304.H]

Any document required to be submitted by th is permit, including reports, shall contain a certification by a responsible official of truth, accuracy, and completeness. This certification shall state that, based on information and belief fo rmed after reasonable inquiry, the statements and information in the document are true, accurate, and complete.

IX. INSPECTION AND ENTRY [A.A.C. R18-2-309.4]

Upon presentation of proper credentials, the Permitte e shall allow the Director or the authorized representative of the Director to:

A. Enter upon the Permittee’s premises where a s ource is located, emissions-related activity is conducted, or where records are required to be kept under the conditions of the permit:

B. Have access to and copy, at reasonable times, any records that are required to be kept under the conditions of the permit;

C. Inspect, at reasonable times, any facilities, equipment (including monitoring and airTV Permit Renewal Number 52639 Pa ge 6 of 79 December 06, 2011 SRP – Coronado Generating Station pollution control equipment), practices, or op erations regulated or required under the permit;

D. Sample or monitor, at reasonable times, s ubstances or parameters for the purpose of assuring compliance with the permit or other applicable requirements; and

E. Record any inspection by use of written, electronic, magnetic and photographic media.

X. PERMIT REVISION PURSUANT TO FEDERAL HAZARDOUS AIR POLLUTANT

STANDARD [A.A.C. R18-2-304.C]

If this source becomes subject to a standard promulgated by the Administrator pursuant to Section 112(d) of the Act, then the Permittee shall, within twelve months of the date on which the standard is promulgated, submit an applica tion for a permit revision demonstrating how the source will comply with the standard.

XI. ACCIDENTAL RELEASE PROGRAM [40 CFR Part 68]

If this source becomes subject to the provisions of 40 CFR Part 68, then the Permittee shall comply with these provisions according to th e time line specified in 40 CFR Part 68.

XII. EXCESS EMISSIONS, PERMIT DEVIATIONS, AND EMERGENCY REPORTING

A. Excess Emissions Reporting [A.A.C. R18-2-310.01.A and -310.01.B]

1. Excess emissions shall be reported as follows:

a. The Permittee shall report to the Director any emissions in excess of the limits established by this permit. Su ch report shall be in two parts as specified below:

(1) Notification by telephone or facsimile within 24 hours of the

time when the Permittee first learned of the occurrence of excess emissions including all available information from Condition

XII.A.1.b below.

(2) Detailed written notification by submission of an excess emissions report within 72 hours of the notification pursuant to Condition XII.A.1.a.(1) above.

b. The report shall contain the following information:

[A.A.C. R18-2-310.01.C]

(1) Identity of each stack or other emission point where the excess emissions occurred;

(2) Magnitude of the excess emissions expressed in the units of the applicable emission limitati on and the operating data and calculations used in determining the magnitude of the excess emissions;TV Permit Renewal Number 52639 Pa ge 7 of 79 December 06, 2011 SRP – Coronado Generating Station (3) Date, time and duration, or expected duration, of the excess emissions;

(4) Identity of the equipment from which the excess emissions emanated;

(5) Nature and cause of such emissions;

(6) If the excess emissions were the result of a malfunction, steps taken to remedy the malfunction a nd the steps taken or planned to prevent the recurrence of such malfunctions; and

(7) Steps taken to limit the excess emissions. If the excess emissions resulted from start-up or malfunction, the report shall contain a list of the steps taken to comply with the permit procedures.

2. In the case of continuous or recurring excess emissions, the notification requirements of this section shall be satisfied if the source provides the required

notification after excess emissions are first detected and includes in such

notification an estimate of the time th e excess emissions will continue. Excess emissions occurring after the estimated time period, or changes in the nature of the emissions as originally reported, shall require additional notification pursuant

to Condition XII.A.1 above.

B. Permit Deviations Reporting [A.A.C. R18-2-306.A.5.b]

The Permittee shall promptly report deviations from permit requirements, including those attributable to upset conditions as defined in the permit, the probable cause of such deviations, and any corrective actions or pr eventive measures taken. Prompt reporting shall mean that the report was submitted to th e Director by certified mail, facsimile, or hand delivery within two working days of the time when emission limitations were exceeded due to an emergency or within two working days of the time when the owner or operator first learned of the occurrence of a deviation from a permit requirement.

C. Emergency Provision [A.A.C. R18-2-306.E]

1. An “emergency” means any situa tion arising from sudden and reasonable unforeseeable events beyond the control of the source, including acts of God, that require immediate corrective action to restore normal operation, and that causes the source to exceed a technology-based emission limitation under the permit, due to unavoidable increases in emissions attributable to the emergency. An emergency shall not include noncompliance to the extent caused by improperly designed equipment, lack of preventativ e maintenance, careless or improper operation, or operator error.

2. An emergency constitutes an affirma tive defense to an action brought for noncompliance with such technology-based emission limitations if Condition

XII.C.3 is met.TV Permit Renewal Number 52639 Pa ge 8 of 79 December 06, 2011 SRP – Coronado Generating Station 3. The affirmative defense of emergency shall be demonstrated through properly signed, contemporaneous operating logs , or other relevant evidence that:

a. An emergency occurred and that th e Permittee can identify the cause(s) of the emergency;

b. The permitted facility was being properly operated at the time;

c. During the period of the emergency, the Permittee took all reasonable steps to minimize levels of emissi ons that exceeded the emissions standards or other requirements in the permit; and

d. The Permittee submitted notice of the emergency to the Director by certified mail, facsimile, or hand deliv ery within two working days of the time when emission limitations were exceeded due to the emergency. This notice shall contain a description of the emergency, any steps taken to mitigate emissions, and corrective action taken.

4. In any enforcement proceeding, the Perm ittee seeking to establish the occurrence of an emergency has the burden of proof.

5. This provision is in addition to any emergency or upset provision contained in any applicable requirement.

D. Compliance Schedule [ARS § 49-426.I.5]

For any excess emission or permit deviation that cannot be corrected with 72 hours, the Permittee is required to submit a compliance sche dule to the Director within 21 days of such occurrence. The compliance schedul e shall include a schedule of remedial measures, including an enforceable sequence of actions with milestones, leading to compliance with the permit terms or conditions that have been violated.

E. Affirmative Defenses for Excess Emissi ons Due to Malfunctions, Startup, and

Shutdown [A.A.C. R18-2-310]

1. Applicability

This rule establishes affirmative defen ses for certain emissions in excess of an

emission standard or limitation and a pplies to all emission standards or limitations except for standards or limitations:

a. Promulgated pursuant to Sections 111 or 112 of the Act;

b. Promulgated pursuant to Titles IV or VI of the Clean Air Act;

c. Contained in any Prevention of Signi ficant Deterioration (PSD) or New Source Review (NSR) permit issued by the U.S. EPA;

d. Contained in A.A.C. R18-2-715.F; or

e. Included in a permit to meet the re quirements of A.A.C. R18-2-406.A.5.TV Permit Renewal Number 52639 Pa ge 9 of 79 December 06, 2011 SRP – Coronado Generating Station 2. Affirmative Defense for Malfunctions

Emissions in excess of an applicable emission limitation due to malfunction shall

constitute a violation. When emissions in excess of an applicable emission limitation are due to a malfunction, the Pe rmittee has an affirmative defense to a civil or administrative enforcement proceedi ng based on that violation, other than a judicial action seeking injunctive relief, if the Permittee has complied with the reporting requirements of A.A.C. R18-2- 310.01 and has demonstrated all of the following:

a. The excess emissions resulted from a sudden and unavoidable breakdown of process equipment or air pollution control equipment beyond the reasonable control of the Permittee;

b. The air pollution control equipmen t, process equipment, or processes were at all times maintained and operated in a manner consistent with good practice for minimizing emissions;

c. If repairs were required, the repairs were made in an expeditious fashion when the applicable emission limitations were being exceeded. Off-shift

labor and overtime were utilized wher e practicable to ensure that the repairs were made as expeditiously as possible. If off-shift labor and overtime were not utilized, the Permittee satisfactorily demonstrated that the measures were impracticable;

d. The amount and duration of the excess emissions (including any bypass operation) were minimized to the maximum extent practicable during periods of such emissions;

e. All reasonable steps were taken to minimize the impact of the excess emissions on ambient air quality;

f. The excess emissions were not part of a recurring pattern indicative of inadequate design, operation, or maintenance;

g. During the period of excess emissions there were no exceedances of the relevant ambient air quality standards established in Title 18, Chapter 2,

Article 2 of the Arizona Administrative Code that could be attributed to the emitting source;

h. The excess emissions did not stem fr om any activity or event that could have been foreseen and avoided, or planned, and could not have been avoided by better operations and maintenance practices;

i. All emissions monitoring systems were kept in operation if at all practicable; and

j. The Permittee's actions in response to the excess emissions were documented by contemporaneous recordsTV Permit Renewal Number 52639 Pa ge 10 of 79 December 06, 2011 SRP – Coronado Generating Station 3. Affirmative Defense for Startup and Shutdown

a. Except as provided in Condition X II.E.3.b below, and unless otherwise provided for in the applicable requi rement, emissions in excess of an applicable emission limitation due to startup and shutdown shall

constitute a violation. When emi ssions in excess of an applicable emission limitation are due to startup and shutdown, the Permittee has an

affirmative defense to a civil or administrative enforcement proceeding based on that violation, other than a judicial action seeking injunctive relief, if the Permittee has complied with the reporting requirements of A.A.C. R18-2-310.01 and has demonstrated all of the following:

(1) The excess emissions could not have been prevented through careful and prudent planning and design;

(2) If the excess emissions were the result of a bypass of control equipment, the bypass was unavoida ble to prevent loss of life, personal injury, or severe damage to air pollution control equipment, production equipment, or other property;

(3) The air pollution control equipment, process equipment, or processes were at all times maintained and operated in a manner consistent with good practice for minimizing emissions;

(4) The amount and duration of the excess emissions (including any bypass operation) were minimized to the maximum extent practicable during periods of such emissions;

(5) All reasonable steps were taken to minimize the impact of the excess emissions on ambient air quality;

(6) During the period of excess emissions there were no exceedances of the relevant ambient air quality standards established in Title 18, Chapter 2, Article 2 of the Arizona Administrative Code that could be attributed to the emitting

source;

(7) All emissions monitoring systems we re kept in operation if at all practicable; and

(8) Contemporaneous records documented the Permittee’s actions in response to the excess emissions.

b. If excess emissions occur due to a malfunction during routine startup and shutdown, then those instances shall be treated as other malfunctions subject to Condition XII.E.2 above.

4. Affirmative Defense for Malfunc tions During Scheduled Maintenance

If excess emissions occur due to a malf unction during scheduled maintenance, then those instances will be treated as other malfunctions subject to ConditionTV Permit Renewal Number 52639 Pa ge 11 of 79 December 06, 2011 SRP – Coronado Generating Station XII.E.2 above.

5. Demonstration of Reasonable and Practicable Measures

For an affirmative defense under Cond ition XII.E.2 or XII.E.3 above, the Permittee shall demonstrate, through subm ission of the data and information required by Condition XII.E and A.A.C. R18-2-310.01, that all reasonable and practicable measures within the Permittee’ s control were implemented to prevent

the occurrence of the excess emissions.

XIII. RECORD KEEPING REQUIREMENTS [A.A.C. R18-2-306.A.4]

A. The Permittee shall keep records of all requi red monitoring information including, but not limited to, the following:

1. The date, place as defined in the permit, and time of sampling or measurements;

2. The date(s) analyses were performed;

3. The name of the company or entit y that performed the analyses;

4. A description of the analytical techniques or methods used;

5. The results of such analyses; and

6. The operating conditions as existing at the time of sampling or measurement.

B. The Permittee shall retain records of all requi red monitoring data and support information for a period of at least 5 years from the date of the monitoring sample, measurement, report, or application. Support informa tion includes all calibration and maintenance records and all original strip-chart recordings or other data recordings for continuous monitoring instrumentation, and copies of all reports required by the permit.

C. All required records shall be maintained either in an unchangeable electronic format or in a handwritten logbook utilizing indelible ink

.

XIV. REPORTING REQUIREMENTS [A.A.C. R18-2-306.A.5.a]

The Permittee shall submit the following reports:

A. Compliance certifications in accordance with Section VII of Attachment “A”.

B. Excess emission; permit deviation, and emergency reports in accordance with Section XII

of Attachment “A”.

C. Other reports required by any condition of Attachment “B”.

XV. DUTY TO PROVIDE INFORMATION [A.A.C. R18-2-304.G and -306.A.8.e]

A. The Permittee shall furnish to the Director, w ithin a reasonable time, any information that the Director may request in writing to determine whether cause exists for revising,TV Permit Renewal Number 52639 Pa ge 12 of 79 December 06, 2011 SRP – Coronado Generating Station revoking and reissuing, or terminating the pe rmit, or to determine compliance with the permit. Upon request, the Permittee shall also furnish to the Director copies of records required to be kept by the permit. For in formation claimed to be confidential, the Permittee shall furnish an additional copy of such records directly to the Administrator along with a claim of confidentiality.

B. If the Permittee has failed to submit any relevant facts or has submitted incorrect information in the permit application, the Permittee shall, upon becoming aware of such failure or incorrect submittal, promptly s ubmit such supplementary facts or corrected

information.

XVI. PERMIT AMENDMENT OR REVISION [A.A.C. R18-2-318, -319, and -320]

The Permittee shall apply for a permit amendment or revision for changes to the facility which does not qualify for a facility change without revision under Section XVII, as follows:

A. Administrative Permit Amendment (A.A.C. R18-2-318);

B. Minor Permit Revision (A.A.C. R18-2-319); and

C. Significant Permit Revision (A.A.C. R18-2-320).

The applicability and requirements for such ac tion are defined in the above referenced regulations.

XVII. FACILITY CHANGE WITHOUT A PERMIT REVISION [A.A.C. R18-2-306.A.4 and -317]

A. The Permittee may make changes at the permitted source without a permit revision if all of the following apply:

1. The changes are not modifications under any provision of Title I of the Act or under ARS § 49-401.01(19);

2. The changes do not exceed the emissions allowable under the permit whether expressed therein as a rate of emissions or in terms of total emissions;

3. The changes do not violate any applicable requirements or trigger any additional applicable requirements;

4. The changes satisfy all requirements for a minor permit revision under A.A.C. R18-2-319.A; and

5. The changes do not contravene federally enforceable permit terms and conditions that are monitoring (including test methods), record keeping, reporting, or compliance certification requirements.

B. The substitution of an item of process or pollu tion control equipment for an identical or substantially similar item of process or pollution control equipment shall qualify as a change that does not require a permit revision, if it meets all of the requirements of

Conditions XVII.A and XVII.C of this Attachment.TV Permit Renewal Number 52639 Pa ge 13 of 79 December 06, 2011 SRP – Coronado Generating Station C. For each change under Conditions XVII.A and XVII.B above, a written notice by certified mail or hand delivery shall be received by the Director and the Administrator a minimum of 7 working days in advance of the change. Notifications of changes associated with emergency conditions, such as malfunctions necessitating the replacement of equipment, may be provided less than 7 working days in advance of the change, but must be provided as far in advan ce of the change, as possible or, if advance notification is not practicable, as soon after the change as possible.

D. Each notification shall include:

1. When the proposed change will occur;

2. A description of the change;

3. Any change in emissions of regulated air pollutants; and

4. Any permit term or condition that is no longer applicable as a result of the change.

E. The permit shield described in A.A.C. R18- 2-325 shall not apply to any change made under this Section, other than implementati on of an alternate to Conditions XVII.A and

XVII.B above.

F. Except as otherwise provided for in the perm it, making a change from one alternative operating scenario to another as provided under A.A.C. R18-2-306.A.11 shall not require any prior notice under this Section.

G. Notwithstanding any other part of this Section, the Director may require a permit to be revised for any change that, when considered together with any other changes submitted by the same source under this Section over the term of the permit, do not satisfy

Condition XVII.A above.

XVIII. TESTING REQUIREMENTS [A.A.C. R18-2-312]

A. The Permittee shall conduct performance tests as specified in the permit and at such other times as may be required by the Director.

B. Operational Conditions During Testing

Tests shall be conducted during operation at the maximum possible capacity of each unit under representative operational conditions unl ess other conditions are required by the applicable test method or in this permit. With prior written approval from the Director, testing may be performed at a lower rate. Operations during periods of start-up, shutdown, and malfunction (as defined in A. A.C. R18-2-101 and 40 CFR 60.8) shall not constitute representative operational conditio ns unless otherwise specified in the applicable standard.

C. Tests shall be conducted and data reduced in accordance with the test methods and procedures contained in the Arizona Testi ng Manual unless modified by the Director pursuant to A.A.C. R18-2-312.B.TV Permit Renewal Number 52639 Pa ge 14 of 79 December 06, 2011 SRP – Coronado Generating Station D. Test Plan

At least 14 calendar days prior to performing a test, the Permittee shall submit a test plan

to the Director in accordance with A.A.C. R 18-2-312.B and the Arizona Testing Manual. This test plan must include the following:

1. Test duration;

2. Test location(s);

3. Test method(s); and

4. Source operation and other parameters that may affect test results.

E. Stack Sampling Facilities

The Permittee shall provide, or cause to be provided, performance testing facilities as

follows:

1. Sampling ports adequate for test methods applicable to the facility;

2. Safe sampling platform(s);

3. Safe access to sampling platform(s); and

4. Utilities for sampling and testing equipment.

F. Interpretation of Final Result

Each performance test shall consist of thr ee separate runs using the applicable test

method. Each run shall be conducted for th e time and under the conditions specified in the applicable standard. For the purpose of determining compliance with an applicable standard, the arithmetic mean of the results of th e three runs shall apply. In the event that a sample is accidentally lost or conditions occur in which one of the three runs is required

to be discontinued because of forced shutdow n, failure of an irreplaceable portion of the sample train, extreme meteorological c onditions, or other circumstances beyond the Permittee’s control, compliance may, upon the Director’s approval, be determined using

the arithmetic mean of the results of the other two runs. If the Director or the Director’s designee is present, tests may only be stoppe d with the Director’s or such designee’s approval. If the Director or the Director’s designee is not present, tests may only be stopped for good cause. Good cause includes: forced shutdown, failure of an irreplaceable portion of the sample train, extreme meteorological conditions, or other circumstances beyond the Perm ittee’s control. Termination of any test without good

cause after the first run is commenced shall constitute a failure of the test. Supporting documentation, which demonstrat es good cause, must be submitted.

G. Report of Final Test Results

A written report of the results of all performance tests shall be submitted to the Director within 45 days after the test is performed . The report shall be submitted in accordanceTV Permit Renewal Number 52639 Pa ge 15 of 79 December 06, 2011 SRP – Coronado Generating Station with the Arizona Testing Manual and A.A.C. R18-2-312.A.

XIX. PROPERTY RIGHTS [A.A.C. R18-2-306.A.8.d]

This permit does not convey any property rights of any sort, or any exclusive privilege.

XX. SEVERABILITY CLAUSE [A.A.C. R18-2-306.A.7]

The provisions of this permit are severable. In th e event of a challenge to any portion of this permit, or if any portion of this permit is he ld invalid, the remaining permit conditions remain

valid and in force.

XXI. PERMIT SHIELD [A.A.C. R18-2-325]

Compliance with the conditions of this permit sh all be deemed compliance with all applicable requirements identified in the portions of this perm it subtitled “Permit Shield”. The permit shield shall not apply to minor revisions pursuant to Condition XVI.B of this Attachment and any facility changes without a permit revision pursu ant to Section XVII of this Attachment.

XXII. PROTECTION OF STRATOSPHERIC OZONE [40 CFR Part 82]

If this source becomes subject to the provisions of 40 CFR Part 82, then the Permittee shall comply with these provisions accordingly.

XXIII. NEW SOURCE PERFORMANCE STANDARD & NATIONAL EMISSIONS

STANDARDS FOR HAZARDOUS AIR POLLUTANTS [40 CFR Part 60, Part 63]

For all equipment subject to a New Source Perfo rmance Standard/National Emissions Standards for Hazardous Air Pollutants, the Permittee shal l comply with all applicable requirements contained in Subpart A of Title 40, Chapter 60 and Chapter 63 of the Code of Federal Regulations.

XXIV. ACID RAIN

A. When provisions or requirements of the regula tions incorporated pursuant to A.A.C. R18- 2-333.A (Acid Rain) conflict with any of the applicable requirements, the regulations incorporated by A.A.C. R18-2-33 3.A shall apply and take precedence. [A.A.C. R18-2-333]

B. No permit revision shall be required for incr eases in emissions that are authorized by allowances acquired pursuant to acid rain program, provided that such increases do not require a permit revision under an y other applicable requirement. [A.A.C. R18-2-306.A.6.a]

C. No limit shall be place on the number of allowa nces held by the source. The source may not, however, use allowances as defense to noncompliance with any other applicable requirement. [A.A.C. R18-2-306.A.6.c]

D. Any such allowance shall be accounted for according to the procedures established in regulations promulgated unde r Title IV of the Act. [A.A.C. R18-2-306.A.6.c]

E. All of the following are prohibited: [A.A.C. R18-2-306.A.6.d]TV Permit Renewal Number 52639 Pa ge 16 of 79 December 06, 2011 SRP – Coronado Generating Station 1. Annual emissions of sulfur dioxide in excess of the number of allowances to emit sulfur dioxide held by the owners of the operations of the unit or the designed representative of the owners or the operators as of the applicable allowance transfer deadline;

2. Exceedances of applicable emissions rates;

3. The use of any allowance prior to the year for which it was allocated; and

4. Contravention of any other provision of the permit.TV Permit Renewal Number 52639 Pa ge 17 of 79 December 06, 2011 SRP – Coronado Generating Station 

### ATTACHMENT “B”: SPECIFIC CONDITIONS

Air Quality Control Permit No. 52639

for Salt River Project - Coronado Generating Station

I. FACILITY WIDE LIMITATIONS

A. The Permittee shall have on site or on call a person that is certified in EPA Reference

Method 9. [A.A.C. R18-2-306.A.3.c]

B . Permittee shall record any change in fuel type including:

1. Type of fuel change; 2. Date of the fuel change; and 3. Time of the fuel change.

[A.A.C. R18-2-306.A.3.c]

C. Permittee shall maintain a log of all adjustments, replacements, and maintenance performed on all air pollution control equipment.

[Permit #30732, Attachment “B”, Condition I.D]

D. At the time the compliance certifications required by Section VII of Attachment “A” are submitted, the Permittee shall submit reports of all monitoring activities required by Attachment “B” performed during the six month compliance term.

[A.A.C. R18-2-306.A.5.a]

II. UNIT 1 AND UNIT 2 BOILERS

A. Applicability

This section applies to the Unit 1 and Unit 2 boilers as described in Attachment “C” of this permit.

B. Definitions

1. Unit Operating Day - A Unit Operating Day for Unit 1 means any calendar day on which Unit 1 fires fossil fuel. A Unit Operating Day for Unit 2 means any calendar day on which Unit 2 fires fossil fuel.
[Significant Revision #46236 Condition II.A.2]
2. Startup - Startup means the setting into operation of Coronado Generating Station (CGS) Unit 1 or Unit 2 for any purpose. [40 CFR 60.2]

3. Shutdown - Shutdown means the cessation of operation of Coronado Generating Station (CGS) Unit 1 or Unit 2 for any purpose. [40 CFR 60.2]

4. Malfunction - Malfunction means any sudden, infrequent, and not reasonably preventable failure of air pollution cont rol equipment, process equipment, or a process to operate in a normal or usual manne r. Failures that are caused in part by poor maintenance or careless operation are not malfunctions. [40 CFR 60.2]TV Permit Renewal Number 52639 Pa ge 18 of 79 December 06, 2011 SRP – Coronado Generating Station C. Operational Limitations

1. Fuel Limitations

Permittee shall burn only the following as fuel in the boiler units:

a. Coal;

b. Fuel Oil (Number 2 fuel oil or used oil and subject to Section IX of this

Attach ment);

c. Co-firing of coal and Number 2 fuel oil; and

d. Co-firing of coal and used oil fuel subject to Section IX of this

Attach ment. [A.A.C. R.18-2-306A.2]

2

. Permittee shall maintain a file of a ll measurements, including continuous monitoring system, monitoring device, and performance tes ting measurements; all continuous monitoring system perfo rmance evaluations; all continuous monitoring system or monitoring device calibration checks; adjustments and maintenance performed on these systems or devices; and all other information required by this section recorded in a pe rmanent form suitable for inspection. The file shall be retained for at least five years following the date of such measurements, maintenanc e, reports and records. [40 CFR 60.7(f)]

3. Excess Emissions and Monitoring System Performance (MSP) Reports

The Permittee shall submit excess emissions and monitoring system performance(MSP) reports to the Department and EPA Region IX semi-annually for each sixmonth period in the calendar year. Al l semiannual reports shall be postmarked by the 30 th day following the end of each six-month period. Periods of excess emissions as defined in the applicable sections and monitoring systems (MS) downtime shall be reported. Each exce ss emissions and MSP report shall include the following:

a. The magnitude of excess emissions computed, any conversion factor(s) used; the date and time of commenc ement and completion of each time period of excess emissions, and the process operating time during the reporting period.

b. Specific identification of each period of excess emissions that occurs during startups, shutdowns, and malfun ctions of the affected facility. The nature and cause of any malf unction (if known), the corrective action taken or preventative measures adopted.

c. The date and time identifying each period during which the continuous monitoring system was inoperative except for zero and span checks and the nature of the system repairs or adjustments.

d. When no excess emissions have o ccurred or the continuous monitoring systems have not been inoperative, repaired, or adjusted, suchTV Permit Renewal Number 52639 Pa ge 19 of 79 December 06, 2011 SRP – Coronado Generating Station information shall be stated in the report.
[40 CFR 60.45(g), 60.7(c)]

4. In addition to II.C.3.above, Permittee shall report emissions exceeding an

emission limitation or standard as deviations in accordance with Section XII.B of Attachment “A” of this permit.

[A.A.C. R18-2-306.A.5.b] 5. Emission Rates for Performance Testing

When conducting the required performan ce tests, the Permittee shall determine compliance with the PM, SO 2 , & NO

x emissions standards as follows:

a. Emission Rates Using O 2 as Diluent Gas

The emission rate (E) of PM, SO 2 , or NO

x shall be computed for each run using the following equation:

E = C F d (20.9)____ (20.9 - % O 2 )

E = Emission rate of pollutant, ng/J (1b/million Btu). C = Concentration of pollutant, ng/dscm (1b/dscf).

%O 2 = Oxygen concentration, percent dry basis.

F d = Factor as determined from Method 19.
[40 CFR 60.46(b)(1)] b. Emission Rates Using CO 2 as Diluent Gas

As an alternate to the reference method, the emission rate (E) of PM,

SO 2 , & NO

x , may be determined by using the Fc factor in the following equation:

E = C F

c __ 100___

%CO 2

E = emission rate of pollutant, ng/J (1b/million Btu). C = concentration of pollutant, ng/dscm (1b/dscf).

%CO 2 = carbon dioxide concentration, percent dry basis.

F

c = factor as determined from Method 19.
[40 CFR 60.46(d)(1)]
6. Permit Shield

Compliance with this Section shall be deemed compliance with Permit #30732 Attachment “B” permit condition II.B.1 & condition I.D.

[A.A.C. R18-2-325]

D. Particulate Matter and Opacity

1. Emission Limitations/Standards

a. The Permittee shall not cause to be discharged into the atmosphere from the stack of each unit any gases which contain particulate matter inTV Permit Renewal Number 52639 Pa ge 20 of 79 December 06, 2011 SRP – Coronado Generating Station excess of 43 nanograms per joule heat input (0.10 lb per million Btu)

derived from fossil fuel.

[40 CFR 60.42(a)(1)]

b. The Permittee, upon installation and operation of the new FGD system associated with Unit 1 as per Condition II.G.2.b, and continuing thereafter, shall not emit filterable particulate matter (PM) in excess of 0.030 lbs/MMBtu, as determined by performance tests.
[Significant Revision #46236 Condition II.C.1.b.(2); & A.A.C. R18-2-406.A.4] [Material Permit Conditions are defined by underline and italics]

c. The Permittee, upon installation and operation of the new FGD system associated with Unit 2 as per Condition II.G.2.b, and continuing thereafter, shall not emit filterable PM and particulate matter below 10 micron size (PM 10 ) in excess of 0.030 lbs/MMBtu, as determined by performance tests.
[Significant Revision #46236 Condition II.C.1.b.(3); & A.A.C. R18-2-406.A.4] [Material Permit Conditions are defined by underline and italics]

d. The opacity of emissions from the stack of each unit shall not be greater than 20 percent except for one six-minute period per hour of not more than 27 percent opacity

. Periods of startup, shutdown, or malfunction, as defined in condition II.B.2, B.3, & B.4, are excluded from the opacity

standard. Opacity readings of portions of plumes which contain condensed, uncombined water vapor sh all not be used for the purposes of determining compliance with opacity standards

. [40 CFR 60.42(a)(2), 60.11(c), 60.11( e)(1); & A.A.C. R18-2-331.A.3.f] [Material Permit Conditions are defined by underline and italics]

e. Opacity excess emissions for Units 1 and 2 are defined as any six-minute period during which the average opacity of emissions exceeds 20 percent opacity, except that one six-minute average per hour of up to 27 percent opacity need not be reported

. [40 CFR 60.45(g)(1)]

2. Air Pollution Control Requirements

a. At all times, including periods of startup, shutdown, and malfunction, Permittee shall, to the extent practicable, maintain and operate each Hot Side Electrostatic Precipitator (HS- ESP) in a manner consistent with good air pollution control practices for minimizing particulate matter

emissions.
[40 CFR 60.11(d) and A.A.C. R18-2-331.A.3.e] [Material Permit Conditions are defined by underline and italics]

b. The Permittee shall operate each exi sting HS-ESP on Unit 1 and Unit 2 at all times when the Unit is in operation to maximize PM reductions to the extent practicable, provided that such operation of the HS-ESP is consistent with technological lim itations, manufacturer’s specifications, and good engineering and maintenance practices for the HS-ESP.
[Significant Revision #46236 Condition II. C.2.b and A.A.C. R18-2-331.A.3.e] [Material Permit Conditions are defined by underline and italics]TV Permit Renewal Number 52639 Pa ge 21 of 79 December 06, 2011 SRP – Coronado Generating Station c. Except as required during correlation testing under 40 CFR Part 60, Appendix B, PS-11, and Quality Assurance Requirements under Appendix F, Procedure 2, the Permitte e shall at a minimum perform the following on the HS-ESP to the extent reasonably practicable:

i. Fully energize each section of the HS-ESP for each unit and repair any failed HS-ESP section at the next planned or unplanned unit outage of sufficient length;

ii. Operate automatic control systems on each HS-ESP to maximize particulate matter collection efficiency;

iii. Maintain power levels delivered to the HS-ESPs, consistent with manufacturer’s specifications, the operational design of the unit, and good engineering practices;

iv. Inspect for and repair during the next planned or unplanned unit outage of sufficient length any openings in HS-ESP casings, ductwork, and expansion joints to minimize air leakage; and

v. Optimize the plate-cleaning and discharge-electrode-cleaning systems for the HS-ESPs at each unit by varying the cycle time, cycle frequency, rapper-vibrator intensity, and number of strikes per cleaning event.
[Significant Revision #46236 Condition II.C.2.c]

3. Monitoring & Recordkeeping Requirements

a. Within 180 calendar days following commencement of operation of each flue gas desulfurization (FGD) system, the Permittee shall install,

maintain

, correlate, and operate a continuous emission monitoring systems for measuring PM emissions on the unit being controlled by the FGD system.
[Significant Revision #46236, Condition II.B.3.b and A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are defined by underline and italics]

b. No later than 120 days prior to th e deadline for commencing operation of the PM CEMS, the Permittee shall submit to ADEQ and EPA a proposed Quality Assurance/Quality Control (QA/QC) protocol that shall be followed for the PM CEMS.
[Significant Revision #46236, Condition II.C.3.g.(1)(b); A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are defined by underline and italics]

c. In developing the plan for installation and correlation of the PM CEMS and QA/QC protocol, the Permittee sha ll use the criteria set forth in 40 CFR Part 60, Appendix B, PS-11, and Appendix F, Procedure 2.
[Significant Revision #46236, Condition II.C.3.g.(1)(c); A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are defined by underline and italics]TV Permit Renewal Number 52639 Pa ge 22 of 79 December 06, 2011 SRP – Coronado Generating Station d. Following ADEQ’s and EPA’s approva l of the QA/QC plan described in Condition II.D.3.b, the Permittee shall thereaft er operate the PM CEMS in accordance with the approved QA/QC protocol.
[Significant Revision #46236, Condition II.C.3.g(1)(d); A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are defined by underline and italics]

e. Within 180 calendar days following commencement of operation of each FGD, the Permittee shall conduct performance specification tests and demonstrate compliance with th e PM CEMS installation and certification plan approved by ADEQ and EPA.
[Significant Revision #46236, Condition II.C.3.g(1)(e); A.A.C. R18-2-331.A.3.c]

f. The PM CEMS shall comprise a c ontinuous particle mass monitor measuring particulate matter concentration, directly or indirectly, on an hourly average basis and a diluents monitor used to convert the concentration to units expressed in pounds per MMBtu (lbs/MMBtu). The PM CEMS installed at Unit 1 and Unit 2 must be appropriate for the anticipated stack conditions and capab le of measuring PM concentrations on an hourly average basis.
[Significant Revision #46236, Condition II.C.3.g(1)(f)]

g. Except for periods of monitor malf unction, maintenance, or repair, SRP shall continuously operate the PM CEMS at all times when the Unit it serves is operating.
[Significant Revision #46236, Condition II.C.3.g(1)(g)]

h. PM CEMS Demonstration Period

i. Upon completion of the PM CEMS performance specification tests, the Permittee shall operate the PM CEMS for at least two years. If, after 2 years of operation, the Permittee believes that it is infeasible to continue operation of the PM CEMS, the Permittee may submit a demonstration of infeasibility to ADEQ and EPA within 90 days after the end of the demonstration period:

(1) As part of that demonstration, the Permittee shall submit an alternative PM monitoring plan for review and approval by ADEQ and EPA. If ADEQ and EPA disapprove the alternative monitoring plan, or if ADEQ and EPA rejects the Permittee’s assertion that it is infeasible to continue operating the PM CEMS, such disagreement is subject to di spute resolution as specified in Section XV of the EPA Consent Decree (Civil Action No. 2:08-cv-1479-JAT).
[Significant Revision #46236, Condition II.C.3.g(2)(a)(i)]

(2) The Permittee shall submit a permit revision application to ADEQ to incorporate the approved alternative PM monitoring plan within 30 days of obtaining approval.

[A.A.C. R18-2-306.A.2]TV Permit Renewal Number 52639 Pa ge 23 of 79 December 06, 2011 SRP – Coronado Generating Station ii. Operation of a PM CEMS shall be considered “infeasible” if, by way of example, the PM CEMS:

(1) Cannot be kept in proper condition for sufficient periods of time to produce reliable, adequate, or useful data; or

(2) The Permittee demonstrates that recurring, chronic, or unusual equipment adjustment or servicing needs in relation to other types of continuous emission monitors cannot be resolved through reasonable expenditures of

resources; or

(3) Chronic and difficult operational issues at Unit 1 or Unit 2 cannot be resolved through reasonable expenditure of

resources; or

(4) The data produced by the CEMS cannot be used to

assess PM emissions from Unit 1 or Unit 2 or performance of that Unit’s control devices.
[Significant Revision #46236, Condition II.C.3.g(2)(b)]

iii If ADEQ and EPA determine that the Permittee has demonstrated infeasibility pursuant to Condition II.D.3.h.ii, the Permittee shall be entitled to discontinue operation of and

remove the PM CEMS.
[Significant Revision #46236, Condition II.C.3.g(2)(c)]

iv. If, after 2 years of operation, the Permittee determines that it is feasible to continue operation of the PM CEMS, the Permittee shall continue to comply with a ll requirements specified in this permit for the operation and maintenance of the CEMS.

[A.A.C. R18-2-306.A.3.c]

i. The Permittee shall maintain, in an electronic database, the hourly average emission values from all PM CEMS data in lb/MMBtu.
[Significant Revision #46236, Condition II.C.3.g(3)]

j. The Permittee shall calibrate , maintain, and operate continuous opacity monitoring system (COMS) for measuring the opacity of emissions.
[40 CFR 60.45(a), A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are de fined by underline and italics]

k. COMS Requirements

The COMS shall meet the following requirements:

i 40 CFR 60, Appendix B, Performance Specification 1, “Specification and Test Procedures for Opacity Continuous Emission Monitoring Systems in Stationary Sources”

(1) ApparatusTV Permit Renewal Number 52639 Pa ge 24 of 79 December 06, 2011 SRP – Coronado Generating Station (2) Installation Specifications (3) Design and Performance Specifications (4) Design Specifications Verification Procedure (5) Performance Specifications Verification Procedure

(6) Equations

[40 CFR 60.13(a)]

ii. The following quality assurance requirements:

(1) Calibration Checks

Permittee shall check the zero and span calibration drifts at least once daily in accordance with a written procedure.
[40 CFR 60.13(d)(1) and 40 CFR 60, Appendix B, PS1, 5.2]

(2) Zero and Span Drift Adjustments

(a) The zero and span shall, as a minimum, be adjusted whenever the 24-hr zero drift or 24-hr span drift exceeds 4% opacity.
[40 CFR 60.13(d)(1)]

(b) The system shall allow for the amount of excess zero and span drift measured at the 24-hour interval checks to be recorded and quantified.
[40 CFR 60.13(d)(1)]

(c) The optical surfaces exposed to the effluent gases shall be cleaned prior to performing the zero and span drift adjustments, except for systems using automatic zero adjustments.
[40 CFR 60.13(d)(1)]

(d) For systems using automatic zero adjustments, the optical surfaces shall be cleaned when the cumulative automatic zero compensation exceeds 4% opacity.
[40 CFR 60.13(d)(1)] (3) System Checks

A method for producing a simulated zero opacity condition and an upscale (span) opacity condition using a certified neutral density filte r or other related technique to produce a known obscuration of the light beam to provide a system check of the analyzer internal optical surfaces and all electronic circuitry including the lamp and photodetector assembly shall be used by the

Permittee.
[40 CFR 60.13(d)(2)]TV Permit Renewal Number 52639 Pa ge 25 of 79 December 06, 2011 SRP – Coronado Generating Station (4) Minimum Frequency of Operation

Except during periods of system breakdowns, repairs, calibration checks, and zero and span adjustments, the Continuous Opacity Monitoring System (COMS) shall be in continuous operation and shall complete a minimum of one cycle of sampling and analyzing for each successive 10-second period and one cycle of data recording for each successive 6-minute period.

[40 CFR 60.13(e)(1)] (5) Data Reduction and Missing Data

(a) Permittee shall reduce all data from the COMS to 6-minute averages. Six-minute opacity averages shall be calculated from 36 or more data points equally spaced over each 6-minute period.

(b) Data recorded during periods of system breakdowns, repairs, calibration checks, and zero and span adjustments shall not be included in the data averages computed under the previous paragraph. An arithmetic or integrated average of all data may be used.
[40 CFR 60.13(h)]

l. Compliance Assurance Monitoring (CAM) & Periodic Monitoring

for Particulate Matter

i. Until the new Flue Gas Desulfurization (FGD) commences operation for each unit, the Permittee shall comply with the following:

(1) The Permittee shall measure the opacity of exhaust gases as an indicator of particulate matter emissions. The COMS shall be used to monitor the opacity. The COMS shall be installed and operated in accordance with the requirements specified in Condition II.D.3.k of this

Attachment.
[40 CFR 64.6(c)(1)(i), 64.6(c)(1)(ii)]

(2) The Permittee shall measur e the secondary current and voltage for each section of each ESP.
[40 CFR 64.6(c)(1)(i)]

(3) Using COMS data, the Permittee shall calculate rolling 1-hour average opacities excluding periods of boiler startup, shutdown, and malfunction. If at any point, excluding periods of startup, shutdown, and malfunction, the opacity is equal to or exceeds 18%, then the

Permittee shall:TV Permit Renewal Number 52639 Pa ge 26 of 79 December 06, 2011 SRP – Coronado Generating Station (a) Record the secondary current and secondary voltage for each section of each ESP at that specific moment and determine if the current and/or voltage is with in the range established by the Permittee previously, and

(b) Record the operational status of the specific boiler (i.e. load change increase or decrease).

(4) Rolling 1-hour average opacities of 18% or greater and electrical parameters (secondary current and secondary voltage) outside the range estab lished previously shall be

considered an excursion.

[40 CFR 64.6(c)(2)]

(5) The Permittee shall record and monitor on a continuous basis (at least once every 15 minutes) the secondary current and voltage for each section of each ESP. If the secondary voltage and/or the current is outside the range established previously, then the Permittee shall record

the occurrence and corrective action taken to return the electrical parameters back within the established range.

This event does not constitute a deviation or an

excursion.

[A.A.C. R18-2-306.A.3.]

ii. Beginning on the date on which the new FGD commences operation and ending on the date on which the Department approves the proposed secondary indicator(s) based on the PM CEMS correlation test for each unit, the Permittee shall comply with the following:

(1) The Permittee shall measur e the secondary current and voltage of the ESP.
[40 CFR 64.6(c)(1)(i), 64.6(c)(1)(ii)]

(2) The Permittee shall monitor the operational status of the wet FGD System limestone slurry recycle pumps.
[40 CFR 64.6(c)(1)(i)]

(3) The Permittee shall record and monitor on a continuous basis (at least once every 15 minutes) the secondary voltage and current for each section of each ESP. If the secondary voltage and/or the current are outside the range established previously, then the Permittee shall

record the occurrence and corrective action taken to return the electrical para meters back within the established range. This event does not constitute a

deviation or an excursion. [A.A.C. R18-2-306.A.3.]

(4) When the ESP secondary current and voltage are out ofTV Permit Renewal Number 52639 Pa ge 27 of 79 December 06, 2011 SRP – Coronado Generating Station range and all of the limestone slurry recycle pumps associated with the wet FGD system are inoperative, the

event will be considered as an excursion.

iii. Beginning on the date the De partment approves the proposed secondary indicator(s) based on the PM correlation tests, the Permittee shall comply with the following indicators:

(1) Emission measurements from the PM CEMS shall be a primary indicator of PM emissions.

(2) The Permittee shall define secondary indicator(s) based on data collected during the PM CEMS

Correlation tests. The Permittee shall establish an acceptable range for the secondary indicator(s) during the correlation tests. The proposed indicator(s) and range(s) shall be submitted to the Department within 60 days of the date on which the Correlation test is completed. Beginning on the date the Department approves the proposed secondary indicator(s), the approved indicator(s) shall be monitored and recorded as secondary indicators of PM emissions.

(3) If PM CEMS emission measurements are greater than 0.028 lb/MMBtu on a 24-hour rolling average, and the secondary indicator(s) are outside the allowable range

established in accordance with Condition II.D.3.l.iii(2), this shall be considered an excursion and trigger an inspection, corrective action, and recordkeeping requirement in accordance with

Condition II.D.3.l.vi & II.D.3.l.viii of this Attachment.
[40 CFR 64.6(c)(1)(i)]

iv. The Permittee shall maintain the monitoring, including but not limited to maintaining necessary parts for routine repair of the monitoring equipment.
[40 CFR 64.6(c)(3), and - 64.7(b)]

v. Except for, as applicable, monitoring malfunctions, associated repairs, and required quality assurance or control activities (including, as applicable, calibration checks and required zero and span adjustments), Permittee shall conduct all monitoring in continuous operation (or shall collect data at all required intervals) at all times that the boilers are operating. Data recorded during monitoring malfunctions, associated repairs, and required quality assurance or control activities shall not be used for purposes of this part, including data averages and calculations, or fulfilling a minimum data availability requirement, if applicable. Permittee shall use all the data collected during all other periods in assessing the operation of the control device and associated control system. A monitoringTV Permit Renewal Number 52639 Pa ge 28 of 79 December 06, 2011 SRP – Coronado Generating Station malfunction is any sudden, infrequent, not reasonably preventable failure of the monitoring to provide valid data. Monitoring failures that are caused in part by poor maintenance or careless operation are not malfunctions.

[40 CFR 64.6(c)(3), 64.9(c)] vi. Response to excursions

(1) Upon detecting an excursion or exceedance, Permittee shall restore operation of the boiler (including the control device and associated capture system) to their normal or usual manner of ope ration as expeditiously as practicable in accordance with good air pollution control practices for minimizing emissions. The response shall include minimizing the period of any startup, shutdown, or malfunction, and taking any necessary corrective actions to restore normal operation and prevent the likely

recurrence of the cause of an excursion or exceedance (other than those caused by ex cused startup or shutdown conditions). Such actions may include initial inspection and evaluation, recording that operations returned to normal without operator action (such as through response by a computerized di stribution control system), or any necessary follow-up actions to return operations to within the indicator range, designated condition, or below applicable emission limitation or standard, as applicable.

(2) Determination of whether Permittee has used acceptable procedures in response to an excursion or exceedance will be based in information available, which may include but is not limited to, monitoring results, review of operation, and maintenance procedures and records, and inspection of the control device, associated capture system, and process.
[40 CFR 64.6(c)(3), 64.7(d)]

vii. After approval of the monitoring under this section, if the

Permittee identifies a failure to achieve compliance with an

emission limitation or standa rd for which the approved monitoring did not provide an indication of an excursion or exceedance while providing valid data, or the results of compliance or performance testing document a need to modify the existing indicator ranges or designated conditions, Permittee shall promptly notify the Department, and if necessary, submit a proposed modification to this permit to address the necessary monitoring changes. Such a modification may include, but is not limited to, re-establishing indicator ranges or designated conditions, modifying the freque ncy of conduction monitoring and collecting data, or the mon itoring of additional parameters.

[40 CFR 64.6(c) (3), 64.9(e)]TV Permit Renewal Number 52639 Pa ge 29 of 79 December 06, 2011 SRP – Coronado Generating Station viii. Excursions shall be reported as required by Condition VII.A.4 of Attachment “A” of this permit. The report shall include, at a minimum, the following:

(1) Summary information on the number, duration and cause (including unknown cause, if applicable) of excursion or exceedances, as applicable, and the corrective actions taken; and

(2) Summary information on the number, duration and cause (including unknown cause, if applicable) for monitoring downtime incidents (other than downtime associated with zero and span or other daily calibration checks, if applicable).
[A.A.C. R18-2-309(2)(c)(iii), 64.9(a)(2)]

m. The Permittee shall maintain a record of the applicable monitoring parameters defined in Condition II.D.3. Records of all excursions and corrective actions taken including the date and time of the event shall be

maintained.

[A.A.C. R18-2-306.A.3.b] 4. Reporting Requirements

a. The Permittee shall report the data r ecorded by the PM CEMS, expressed in lb/MMBtu on a rolling average 3-hour, 6-hour, 24-hour, 30-day, and 365-day basis in electronic format to the ADEQ and EPA in accordance

with Condition VII of Attachment “A”.
[Significant Revision #46236, Condition II.C.3.g(4)(a)]



### b. The Permittee shall identify in the report any PM concentrations measured by the PM CEMS that are greater than 125% of the highest PM

concentration level used in the most recent correlation testing performed pursuant to PS-11. [ Significant Revision #46236, Condition II.C.3.g(4)(b)]

5. Performance Testing

a. The Permittee shall perform annual performance tests on each boiler Unit to determine compliance with the particulate matter concentration using EPA Reference Method 5, 5B, or 17. [40 CFR 60.46(b)(2)]

b. The Permittee may use Method 17 if the stack gas temperature at the sampling location does not exceed an average temperature of 160 °C (320 °F). The procedures of sections 8.1 and 11.1 of Method 5B may be used with Method 17 when used after wet FGD systems and the effluent gas is not saturated or laden with water droplets. [40 CFR 60.46(d)(2)]



### c. FGD Systems



### W ithin 180 days of installation and commencing operation of the FGD system for each unit, the Permittee shall conduct an initial performance test to determine compliance with th e PM emissions rate established inTV Permit Renewal Number 52639 Pa ge 30 of 79 December 06, 2011 SRP – Coronado Generating Station Conditions II.D.1.b and II.D.1.c us ing the below mentioned reference methods and procedures (filterable portion only). Thereafter, the tests shall be conducted annually.

i. 40 CFR Part 60, Appendix A-3, Method 5, Method 5B, or

Method 5I.

ii. 40 CFR Part 60, Appendix A-6, Method 17; or

iii. Alternative stack tests or met hods requested by the Permittee and approved by ADEQ and EPA.
[ Significant Revision #46236, Condition II.C.4.c]
d. Test Procedures

i. The Permittee shall conduct each test consisting of three separate runs performed under representative operating conditions not including periods of startup, shutdown, or malfunction.

ii. The sampling time for each run shall be at least 120 minutes and the volume of each run shall be 1.70 dry standard cubic meters (60 standard dry cubic feet).

iii. The Permittee shall calculate the PM emission rate from the stack test results in accordance with 40 CFR 60.8 (f).

e. The Permittee shall submit the results of each PM stack test to EPA and ADEQ within forty-five (45) days of completion of each test.
[ Significant Revision #46236, Condition II.C.4.d]

7. Permit Shield [A.A.C. R18-2-325]

Compliance with this Section shall be deemed compliance with 40 CFR 60.42(a)(1), 40 CFR 60.42(a)(2), 40 CFR, 60.45(a), 40 CFR 60.45(g)(1), 40 CFR 60.46(b)(2), 40 CFR 60.46(b)(3), 40 CFR 60.46(d)(2), 40 CFR 64.3, 40 CFR 64.4, 40 CFR 64.5, 40 CFR 64.6, 40 CFR 64.7, 40 CFR 64.9, and EPA Consent Decree VI.A.63, VI.B.64, VI.B.65, VI.C.67, VI.C. 68, VI.C.69, VI.C.70, VI.C.71, VI.C.72, VI.C.73, and VI.D.74. Compliance with this Section shall be deemed compliance with 40 CFR 60.45(a), 40 CFR 60.45(g), 40 CFR 60.46(b)(1), 40 CFR 60.46(d)(1), and Permit #30732, Attachment B, Condition II.C.1.

E. Nitrogen Oxides (NOx)

1. Emission Limitations/Standards

a. Coal

i. Permittee shall not cause to be discharged into the atmosphere

from the stack of each boiler any gases which contain nitrogen oxides, expressed as NO 2 in excess of 300 nanograms per joule heat input (0.70 lb per million Btu) derived from coal.

[40 CFR 60.44(a)(3)]TV Permit Renewal Number 52639 Pa ge 31 of 79 December 06, 2011 SRP – Coronado Generating Station ii. Beginning on the earlier of ninety (90) Unit Operating Days or 180 calendar days after the LNB are installed and continuing thereafter, the Permittee shall not allow the 30-day rolling average NO

x emission rate from the stack of each boiler to

exceed 0.320 lb/MMBtu.
[ Significant Revision #46236, Condition II.D.1.e]

iii. Beginning on June 1, 2014, and continuing thereafter, the Permittee shall not allow the 30-day rolling average NO

x emission rate from Unit 2 to exceed 0.080 lb/MMBtu.
[ Significant Revision #46236, Condition II.C.1.f]

iv. Beginning on June 1, 2014, and continuing thereafter, the Permittee shall not allow the 365-day plant-wide rolling NO

x emission rate for Unit 1 and Unit 2 to exceed 7,300 tons per

year. [ Significant Revision #46236, Condition II.C.1.g]

b. Fuel Oil and Used oil fuel

Permittee shall not cause to be disch arg ed into the atmosphere from the stack of each unit any gases which cont ain nitrogen oxides, expressed as

NO 2 in excess of 129 nanograms per joule heat input (0.30 lb per million Btu) derived from used oil fuel.

[40 CFR 60.44(a)(2)]

c. Combination Fuels

i. When different fossil fuels are burned simultaneously in any

co mbination, the applicable sta ndard (in ng/J) is determined by proration using the following formula:

PS NO X = w(260) + x(86) + y(130) + z(300)

w + x + y + z Where:

PS NOX = is the prorated standard for nitrogen oxides when burning different fuels simultaneously, in nanograms per joule heat input derived from all fossil fuels fired or from all fossil fuels and wood residue fired; w = is the percentage of total heat input derived from lignite; x = is the percentage of total heat input derived from gaseous fossil fuel; y = is the percentage of tota l heat input derived from liquid fossil fuel; and z = is the percentage of total heat input derived from solid fossil fuel (except lignite)
[40 CFR 60.44(b)]

ii. Compliance shall be based on the total heat input from all fossil fuels burned, including gaseous fuels.

[40 CFR 60.43(c)]TV Permit Renewal Number 52639 Pa ge 32 of 79 December 06, 2011 SRP – Coronado Generating Station d. Excess Emissions

i. Excess emissions for Units 1 and 2 are defined as any three-hour period during which the average emissions (arithmetic average of three contiguous one-hour periods) exceed the applicable

standards in Section II.E.1 of this Attachment.
[40 CFR 60.45(g)(3)]

ii. Beginning on the earlier of ninety Unit Operating Days or 180 calendar days after the LNB are installed, excess emissions for Units 1 and 2 are defined as any 30-day rolling average that exceeds the applicable standard s in Section II.E.1.a.ii.

iii. Beginning June 1, 2014, excess emissions for Units 1 and 2 are defined as any 30-day rolling averag e that exceeds the applicable standards in Section II.E.1.a.iii, or a 365-rolling total that exceeds the applicable limit speci fied in Section II.E.1.a.iv.

2. Air Pollution Control Requirements

a. The Permittee shall operate the low-NO

x burners(LNB) in accordance with manufacturer’s specifications and good engineering practices to

minimize emissions

. [Significant Revision #46236, Condition II. D.2.c; A.A.C. R18-2-331.A.3.d & e] [Material Permit Conditions are defined by underline and italics]

b. The Permittee shall install a Selec tive Catalytic Reduction (SCR) system on Unit 2 no later than June 1, 2014. At all times during the operation of Unit 2, the Permittee shall operate the SCR in accordance with manufacturer’s specifications an d good engineering practices to

minimize emissions

.

[Significant Revision #46236, Condition II. D.2.d; A.A.C. R18-2-331.A.3.d & e]

[Material Permit Conditions are defined by underline and italics]

c. The Permittee shall continuously operate each NO

x control at all times the unit it serves is in operation consiste nt with technological limitations, manufacturer’s specifications, and good engineering and maintenance practices for minimizing emissions to the extent practicable
[Significant Revision #46236, Conditi on II.D.2.e; A.A.C. R18-2-331.A.3.e]

[Material Permit Conditions are defined by underline and italics]

3. Monitoring & Recordkeeping Requirements

a. Continuous Emissions Monitoring System (CEMS)

The Permittee shall calibrate , maintain, and operate a continuous emissions monitoring system for measuring nitrogen oxides emissions.
[40 CFR 60.45(a); A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are defined by underline and italics]

b. The CEMS for NO

x , shall meet the following requirements:TV Permit Renewal Number 52639 Pa ge 33 of 79 December 06, 2011 SRP – Coronado Generating Station i. 40 CFR Part 75, Appendix A, Specification and Test Procedures

(1) Installation and measurement location (2) Equipment specifications (3) Performance specifications (4) Data acquisition and handling systems (5) Calibration gas (6) Certifications tests and procedures (7) Calculations

ii. 40 CFR Part 75, Appendix B, Quality Assurance and Quality

Control Procedure

(1) Quality control program (2) Frequency of testing

iii. Data Reduction

Permittee shall comply with the data reduction requirements of 40 CFR Part 75.10(d)(1).

c. Monitoring of NO

x Emission Rate

The Permittee shall determine the 30-day rolling average NO

x emission rate for Unit 1 and Unit 2 using CEMS in accordance with the procedures of 40 CFR Part 75, with the following exceptions:

(1) NO

x emissions data need not be bias adjusted

(2) For CEMS with a span less than 100 parts per million (ppm), the calibration drift and out-of-control criteria in Procedure 1, Section 4.3 of 40 CFR Part 60 Appendix F shall apply in lieu of the low emitter specifications in 40 CFR Part 75, Appendix B,

Section 2.1.

(3) For CEMS with a span less than or equal to 30 ppm, the exemption from the 40 CFR Part 75 linearity check will not apply and either the 40 CFR Pa rt 75 linearity check or the cylinder gas audit described in Procedure 1, Section 5.1.2 of 40 CFR Part 60, Appendix F must be performed on a quarterly

basis.

(4) After installing and commencing operation on the SCR system, for Unit 2, an annual relative accu racy test (RATA) audit shall meet, at a minimum, a relative accuracy of less than 20 percent or an accuracy of less than 0.016 lb/MMBtu (expressed as the

difference between the monitor mean and the reference value mean).
[Significant Revision #46236, Condition II.D.3.c]TV Permit Renewal Number 52639 Pa ge 34 of 79 December 06, 2011 SRP – Coronado Generating Station d. Determining the 30-Day Rolling Average NO

x Emission Rate

(1) The Permittee shall calculate the 30-day rolling average NO

x emission rate in accordance with the following procedure:

(a) Sum the total pounds of NO

x emitted from each Unit during the current Unit Operating Day and the previous 29 Unit Operating Days.

(b) Sum the total heat input to the unit in million British thermal units (MMBtu) during the current Unit Operating Day and the previous 29 Unit Operating Days.

(c) Divide the total number of pounds of NO

x emitted during the 30 Unit Operating Days by the total heat input during the 30 Unit Operating Days.
[Significant Revision #46236, Condition II.D.3.d]

(2) A new 30-day rolling average NO

x emission rate shall be calculated for each new Unit Operating Day. Each 30-day rolling average NO

x emission rate will include all emissions that occur during all periods within any Unit Operating Day, including emissions from startup, shutdown, and malfunction.

e. Determining the 365-Day Plant-Wide Rolling NO

x Emission Rate

(1) The 365-day plant-wide rolling NO

x emission rate shall be determined using CEMS, in accordance with the procedures specified in 40 CFR Part 75.
[Significant Revision #46236, Condition II.D.3.e(1)]

(2) The 365-day plant-wide rolling NO

x emission rate means the

total number of tons of NO

x emitted from Units 1 and 2 during a 365-day period beginning on June 1, 2014, and continuing each day thereafter, and shall include all emissions during startup, shutdown, and malfunction, unless the malfunction is determined to be a Force Majeure event as defined in Section XIV of the EPA Consent Decree (Civil Action No. 2:08-cv-1479-JAT).
[Significant Revision #46236, Condition II.D.3.e(2)]

4. Reporting Requirements [A.A.C. R18-2-306.A.5.a]

The Permittee shall maintain records of the 30-day rolling average NO

x emission rate and the 365-day plant-wide rolling tota l. Summary records of these shall be submitted along with the Compliance certifica tions required in Condition VII of the Attachment “A”. Detailed reports sh all be made available, upon request, to Department inspectors in a reasonable time.TV Permit Renewal Number 52639 Pa ge 35 of 79 December 06, 2011 SRP – Coronado Generating Station 5. Permit Shield

Compliance with this Section shall be deemed compliance with 40 CFR 60.43(c), 40 CFR 60.44(a)(2), 40 CFR 60.44(a)(3), 40 CFR 60.44(b), 40 CFR 60.45(a), 40 CFR 60.45(g)(3), 40 CFR 75 Appendix “A” and “B”, 40 CFR 75.10(d)(1), and Significant Revision #46236 Condition II.C.1.e through g., II.C.2.a through e., II.C.3.c through f.

[A.A.C. R18-2-325]

F. Carbon Dioxide (CO 2 )

1. Monitoring, Recordkeeping & Reporting Requirements

a. Continuous Emissions Monitoring System (CEMS)

The Permittee shall calibrate , maintain, and operate a continuous emissions monitoring system for measuring carbon dioxide (CO 2 ) gas.
[40 CFR 60.45(a); A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are defined by underline and italics]

b. The continuous emission monitoring systems for CO 2 shall meet the following requirements:

i. 40 CFR Part 75, Appendix A, Specification and Test Procedures

(1) Installation and measurement location (2) Equipment specifications (3) Performance specifications (4) Data acquisition and handling systems (5) Calibration gas (6) Certifications tests and procedures (7) Calculations

ii. 40 CFR Part 75, Appendix B, Quality Assurance and Quality

Control Procedure

(1) Quality control program (2) Frequency of testing

iii. Data Reduction

Permittee shall comply with the data reduction requirements of 40 CFR Part 75.10(d)(1).

2. Permit Shield

Compliance with this Section shall be deemed compliance with 40 CFR 60.45(a), 40 CFR 75 Appendix “A” and “B”, and 40 CFR 75.10(d)(1).

[A.A.C. R18-2-325]TV Permit Renewal Number 52639 Pa ge 36 of 79 December 06, 2011 SRP – Coronado Generating Station G. Sulfur Dioxide (SO 2 )

1. Emission Limitations/Standards

a. Coal

i. Permittee shall not cause to be discharged into the atmosphere

from the sta ck of each unit any gases which contain sulfur dioxide in excess of 340 nanograms per joule heat input (0.8 pounds per million Btu) derived from coal.

[A.A.C. R18-2-903.1]

ii. Beginning on January 1, 2012, for Unit 2, and continuing thereafter, the Permittee shall achieve and maintain a 30-day rolling average SO 2 removal efficiency of at least 95.0 percent or a 30-day rolling average SO 2 emission rate no greater than 0.080

lb/MMBtu.
[Significant Revision #46236, Condition II.F.d]

iii. Beginning on January 1, 2013, for Unit 1, and continuing thereafter, the Permittee shall achieve and maintain a 30-day rolling average SO 2 removal efficiency of at least 95.0 percent or a 30-day rolling average SO 2 emission rate no greater than 0.080

lb/MMBtu.
[Significant Revision #46236, Condition II.D.2.e]

b. Fuel Oil and Used Oil Fuel

i. Permittee shall not cause to be discharged into the atmosphere

from the sta ck of each unit any gases which contain sulfur dioxide in excess of 340 nanograms per joule heat input (0.8 pounds per million Btu) derived from used oil fuel.

[40 CFR 60.43(a)(1)]

ii. Compliance shall be based on the total heat input from all fossil fuels burned, including gaseous fuels

. [40 CFR 60.43(c)]

c. Excess Emissions

i. Excess emissions for Unit 1 and Unit 2 are defined as any threehour period during which the average emissions (arithmetic average of three contiguous one-hour periods) of sulfur dioxide as measured by a continuous monitoring system exceeds the applicable standard in Conditions II.G.1 of this Attachment.

ii. Beginning January 1, 2012 for Unit 2 and beginning January 1, 2013 for Unit 1, excess emissions are defined as any 30-day rolling average emissions of sulfur dioxide as measured by a continuous monitoring system exc eeds the applicable standard in

Conditions II.G.1.a.ii. or II.G. 1.a.iii of this Attachment.TV Permit Renewal Number 52639 Pa ge 37 of 79 December 06, 2011 SRP – Coronado Generating Station 2. Air Pollution Control Requirement

a. Prior to the installation of FGD systems on Unit 1 and Unit 2, the Permittee shall at all times, including periods of startup, shutdown, and malfunction, to the extent practicable

, maintain, and operate the Pullman Kellogg SO 2 scrubber in a manner consistent with good air pollution control practices for minimizing SO 2 emissions

. [40 CFR 60.11(d) and A.A.C. R18-2-331.A.3.e] [Material Permit Conditions are defined by underline and italics]

b. No later than January 1, 2012, for Unit 2 and no later than January 1, 2013, for Unit 1, the Permittee shall install, maintain, and continuously operate the FGD system on each unit at all times that the unit it serves is in operation, consistent with the technological limitations, manufacturer’s specifications, and good engineering and maintenance practices for the FGDs for minimizing emissions to the extent practicable

.
[Significant Revision #46236, C ondition II.F.2.b;A.A.C. R18-2-306.A.2 and 331.A.3.d & e] [Material Permit Conditions are defined by underline and italics]

3. Monitoring, Recordkeeping, & Reporting Requirements

a. The Permittee shall calibrate , maintain, and operate continuous emissions monitoring system (CEMS) for measuring sulfur dioxide

emissions.
[40 CFR 60.45(a); A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are de fined by underline and italics]

b. The CEMS for SO 2 shall meet the following requirements:

i. 40 CFR Part 75, Appendix A, Specification and Test Procedures

(1) Installation and measurement location (2) Equipment specifications (3) Performance specifications (4) Data acquisition and handling systems (5) Calibration gas (6) Certifications tests and procedures (7) Calculations

ii. 40 CFR Part 75, Appendix B, Quality Assurance and Quality

Control Procedure

(1) Quality control program (2) Frequency of testing

iii. The Permittee shall comply with the data reduction requirements of 40 CFR Part 75.10(d)(1).

iv. The Permittee shall comply w ith all applicable recordkeeping and reporting requirements of 40 CFR Part 75 Subparts F and GTV Permit Renewal Number 52639 Pa ge 38 of 79 December 06, 2011 SRP – Coronado Generating Station respectively

c. Monitoring of SO 2 Emission Rate

The Permittee shall determine the 30-day rolling average SO 2 emission rate and the 30-day rolling average SO 2 removal efficiency for Unit 1 and Unit 2 using CEMS in accordance with the procedures of 40 CFR Part 75, with the following exceptions:

(1) SO 2 emissions data need not be bias adjusted.

(2) For any CEMS with a span less than 100 ppm, the calibration drift and out-of-control criteria in Procedure 1, Section 4.3 of 40 CFR Part 60 Appendix F shall apply in lieu of the low emitter specifications in 40 CFR Part 75, Appendix B, Section 2.1.

(3) For any CEMS with a span less than or equal to 30 ppm, the exemption from the 40 CFR Part 75 linearity check will not apply and either the 40 CFR Pa rt 75 linearity check or the cylinder gas audit described in Procedure 1, Section 5.1.2 of 40 CFR Part 60, Appendix F shall be performed on a quarterly

basis.

(4) An annual relative accuracy test audit shall meet, at a minimum, a relative accuracy of less than 20 percent or an accuracy of less than 0.016 lb/MMBtu (expressed as the difference between the monitor mean and the reference value mean).

(5) In lieu of installing an inlet flow monitor, the inlet pounds of SO 2 will be calculated as described in Condition II.G.3.d.i.(2).
[ Significant Revision #46236, Condition II.F.3.b ]

d. Determining the 30-Day Rolling Average SO 2 Removal Efficiency

i. If necessary, the Permittee shall calculate the 30-day rolling average SO 2 removal efficiency in acco rdance with the following procedure:

(1) Sum the total pounds of SO 2 emitted as measured at the outlet of the FGD system for the unit during the current Unit Operating Day and the previous 29 Unit Operating Days as measured at the outlet of the FGD system for

that unit.

(2) Sum the total pounds of SO 2 delivered to the inlet of the FGD system for the unit during the current Unit Operating Day and the previous 29 Unit Operating Days as measured at the inlet to the FGD system for that unit (this shall be calculated by measuring the ratio of the

lb/MMBtu SO 2 inlet to the lb/MMBtu SO 2 outlet and multiplying the outlet pounds of SO 2 by that ratio).TV Permit Renewal Number 52639 Pa ge 39 of 79 December 06, 2011 SRP – Coronado Generating Station (3) Subtract the outlet SO 2 emissions calculated in Condition II.G.3.d.i.(1) from the inlet SO 2 emissions calculated in Condition II.G.3.d.i.(2).

(4) Divide the remainder calculated in Condition II.G.3.d.i.(3) by the inlet SO 2 emissions calculated in Condition II.G.3.d.i(2).

(5) Multiply the quotient calculated in Condition II.G.3.d.i(4) by 100 to express as a percentage of removal efficiency.

ii. A new 30-day rolling average SO 2 removal efficiency shall be calculated for each new Unit Operating Day and shall include all emissions that occur during all periods within each Unit Operating Day, including emissions from startup, shutdown, and

malfunction.

[Significant Revision #46236, Condition II.F.3.c ]

e. Determining the 30-Day Rolling Average SO 2 Emission Rate
[Significant Revision #46236, Condition II.F.3.d]

i. The Permittee shall calculate the 30-day rolling average SO 2 emission rate in accordance with the following procedure:

(a) Sum the total pounds of SO 2 emitted from each Unit during the current Unit Operating Day and the previous 29 Unit Operating Days.

(b) Sum the total heat input to each Unit in MMBtu during the current Unit Operating Day and the previous 29 Unit Operating Days.

(c) Divide the total number of pounds SO 2 emitted during the 30 Unit Operating Days by the total heat input during the 30 Unit Operating Days.

ii. A new 30-day rolling average SO 2 emission rate shall be calculated for each Unit Operating Day. Each 30-day rolling average SO 2 emission rate shall include all emissions that occur during all periods within any Unit Operating Day, including emissions from startup, shutdown, and malfunction.

f. Reporting Requirements

The Permittee shall maintain records of the SO 2 removal efficiency or

SO 2 emission rate. These records shall be submitted along with the Compliance certifications required in Condition VII of the Attachment “A”. These reports shall be made available, upon request, to Department inspectors in a reasonable time. [A.A.C. R18-2-306.A.5.a]TV Permit Renewal Number 52639 Pa ge 40 of 79 December 06, 2011 SRP – Coronado Generating Station 4. Permit Shield

Compliance with this Section shall be deemed compliance with 40 CFR 60.43(a)(1), 40 CFR 60.43(c), 40 CFR 60.45(a), 40 CFR 60.45(g)(2), 40 CFR 75 Subpart F and G, 40 CFR 75 Appendix “A” and “B”, 40 CFR 75.10(d)(1), A.A.C. R18-2-903.1 and Significant Revision Permit #30732 Condition II.F.1.d,e; Condition II.F.2.a & b; Condition II.F.3]. [A.A.C. R18-2-325]

H. Carbon Monoxide (CO)

1. Emission Limitations/Standards

a. The Permittee shall not cause to be discharged into the atmosphere from the stack of each unit any gases whic h contain CO in excess of 0.50 lb/MMBtu on a 30-day rolling averag e, excluding periods of start-up, shutdown, and malfunction.

[A.A.C. R18-2-406.A.4]

b. The Permittee shall not cause to be discharged into the atmosphere from the stack of each unit any gases which contains CO in excess of 3.6 lb/MMBtu on a 1-hour average.

[A.A.C. R18-2-406.A.5]

2. Monitoring, Recordkeeping & Reporting Requirements

a. Beginning on the earlier of 90 Unit Operating Days or 180 calendar days after the low-NOx burners ar e installed and commence operating on each unit, the Permittee shall calibrate, maintain, and operate continuous emission monitoring systems (CEMS) for measuring emissions of CO.

[A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are defined by underline and italics]

b. The Permittee shall calibrate , maintain, and operate continuous emissions monitoring system (CEMS) for measuring carbon monoxide

emissions.
[40 CFR 60.45(a); A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are defined by underline and italics]

c. The CEMS for CO shall meet the following requirements:

i. 40 CFR Part 60, Appendix B, Performance Specifications, Performance Specification 4, Specifications and Test Procedures for Carbon Monoxide Continuous Monitoring Systems in Stationary Sources.

ii. 40 CFR Part 60, Appendix F, Quality Assurance Procedures.

iii. The Permittee shall check the zero (or low-level value between 0 and 20 percent of span value) and span (50 to 100 percent of span value) calibration drifts at least once daily in accordanceTV Permit Renewal Number 52639 Pa ge 41 of 79 December 06, 2011 SRP – Coronado Generating Station with a written procedure. The zero and span shall, at a minimum, be adjusted whenever the 24-hour zero drift or 24-hour span drift exceeds two times the limits of the applicable performance specifications in 40 CFR Part 60 Appendix B. The system must allow the amount of excess zero and span drift to be recorded and quantified, whenever specified.

iv. Except for system breakdowns, repairs, calibration checks, and zero and span adjustments required under Condition II.H.2.c.iii, the Permittee shall operate the CO CEMS continuously and shall complete a minimum of one cycle of operation (sampling, analyzing, and data recording) for each successive 15-minute period.

[A.A.C.R18-2-306.A.3.c]
d. Carbon Monoxide Excess Emissions

i. Excess emissions for Unit 1 and Unit 2 are defined as any 30 day period, excluding periods of start-up, shutdown and malfunction during which the average emissions of CO as measured by a continuous monitoring system exceeds the applicable standard in Conditions II.H.1 of this Attachment.

Excess emissions for Unit 1 and Unit 2 are defined as any onehour period during which the average emissions of CO as measured by a continuous monitoring system exceeds the applicable standard in Conditions II.H.2 of this Attachment.

[A.A.C.R18-2-312.H.3]

ii. The Permittee shall submit excess emissions and monitoring systems performance reports to the Director semiannually. All reports shall be submitted along with the compliance certifications required by Condition VII of Attachment “A”. Written reports of excess emissions shall include the following

information:

(1) The magnitude of excess emissions computed in accordance with 40 CFR 60.13(h), any conversion factor(s) used, the date and time of commencement and completion of each time period of excess emissions, and the process operating time during the reporting period.

(2) Specific identification of each period of excess

emissions that occurs duri ng startups, shutdowns, and malfunctions of Unit 1 and Unit 2, the nature and cause of any malfunction (if known), and the corrective action taken or preventive measures adopted.

(3) The date and time identifying each period during which the CO CEMS was inoperative, except for zero and span checks, and the nature of the system repairs or adjustments.TV Permit Renewal Number 52639 Pa ge 42 of 79 December 06, 2011 SRP – Coronado Generating Station (4) When no excess emissions have occurred or the CO CEMS have not been inopera tive, repaired, or adjusted, such information shall be stated in the report.

[A.A.C.R18-2-306.A.4]

iii. The summary report form shall contain the information and be in the format shown in Figure 1 of 40 CFR 60.7(d) unless otherwise specified by the Director. One summary report form shall be

submitted for CO emissions mon itored at Unit 1 and Unit 2.

[A.A.C.R18-2-306.A.4]

(1) If the total duration of ex cess emissions for the reporting period is less than 1 percent of the total operating time for the reporting period and CO CEMS downtime for the reporting period is less than 5 percent of the total operating time for the reporting period, only the summary report form shall be submitted and the excess emissions report described in 40 CFR 60.7(c) need not be submitted unless requested by the Department.

(2) If the total duration of ex cess emissions for the reporting period is 1 percent or greater of the total operating time for the reporting period or the total CO CEMS downtime for the reporting period is 5 percent or greater of the total operating time for the reporting period, the summary report form and the excess emission report described in 40 CFR 60.7 (c) shall both be submitted.

3. Permit Shield

Compliance with this Section shall be deemed compliance with Significant

Revision # 46236 Condition II.G of Attachment “B”.

[A.A.C. R18-2-325]

I. Sulfuric Acid (H 2 SO 4 ) Mist

1. Beginning on June 1, 2014, and cont inuing thereafter, the Permittee shall not cause to be discharged into the atmosphere from Unit 2 any gases which contain

H 2 SO 4 in excess of 0.012 lb/MMBtu, excludi ng periods of start-up, shutdown,

and malfunction.

2. Within 180 days of commencement of operation of the SCR on Unit 2, the Permittee shall complete performance tests, conducted using EPA Conditional Test Method 13 (CTM-13) or an alternate test method, to determine if the H 2 SO 4 emissions from Unit 2 are consistently less than or equal to 0.006 lb/MMBtu. If the Permittee requests an alternate test method, the Permittee must submit this request at least 60 days prior to commenc ing the test program. If the Permittee does not receive a response within 30 days of submitting such a request, the proposed alternative test method shall be considered to be approved by the Director and the Administrator. The Permittee must notify the Director and theTV Permit Renewal Number 52639 Pa ge 43 of 79 December 06, 2011 SRP – Coronado Generating Station Administrator at least 30 days prior to commencing the test program and shall submit the test report to the Director and the Administrator within 60 days of completing the test program.

3. If the test report demonstrates that Unit 2 can consistently achieve an emission rate of 0.006 lb/MMBtu, including a co mpliance margin, then this will become

the enforceable H 2 SO 4 emission limit. This limit shall be effective on the date that the test report required in Condition II. I.2 is submitted to the Director and the Administrator. Subsequent H 2 SO 4 performance tests shall be conducted annually

thereafter.

4. H 2 SO 4 Minimization Analysis

a. If the test results from Condition II.I.2 demonstrate that Unit 2 emissions

of H 2 SO 4 exceed 0.006 lb/MMBtu, the Pe rmittee shall prepare an H 2 SO 4 minimization analysis that evaluates further options, including but not limited to reagent/sorbent injection, to reduce emissions to 0.005 lb/MMBtu or less while maintaining PM emissions within 80 percent of the limit set forth in Condition II.D.1.c. The minimization analysis will not be required to include an asse ssment or require the use of any additional PM control equipment. The Permittee shall:

i. Submit the incremental minimization analysis within 30 days of
submitting the test report required by Condition II.I.2;

ii. Identify all available control technologies for reducing H 2 SO 4 emissions;

iii. Include an analysis of the filterable PM control effectiveness of
the scrubber based on data available through stack test, PM
CEMS, and the PM CEMS/PM correlation and RATA testing;

iv. Include an evaluation of the energy, environmental, economic,
and other impacts associated with each alternative technology
and the benefit of reduced emissions that the technology would
bring. For the purposes of this evaluation, it is presumed that
hydrated lime injection is economically reasonable.

v. Include a proposed emission limit and control technology
configuration based on the above evaluation. Any new control
technology required by the minimization analysis would be
installed as soon as practicable, but no later than 2 years after the
Director issues an installation permit unless the Director agrees
to a longer implementation schedule.

b. The Director will assess and determine an appropriate H 2 SO 4 emission limit based on the test results collected during the testing program required by Condition II.I.2 and the minimization analysis. TheTV Permit Renewal Number 52639 Pa ge 44 of 79 December 06, 2011 SRP – Coronado Generating Station assessment will take into considerati on the statistical variability of the test results, the different coal supplies utilized at the facility during the test period, and will include a reasonable margin of safety for compliance

with both the PM and the H 2 SO 4 emission limits.

c. The new limit will become effective upon issuance of a final significant revision to the Permittee’s operating permit, which incorporates the new

H 2 SO 4 emission limit. Permittee shall submit a significant revision application within 30 days of the Dir ector’s determination to incorporate the new limits into the permit. [A.A.C. R18-
2-406.A.4]

5. Permit Shield [A.A.C. R18-2-325]

Compliance with this Section shall be deemed compliance with Significant

Revision # 46236 Condition II.H of Attachment “B”.

J. Surrender of SO 2 Allowances

1. For the purposes of this section, “surrender” means, with regard to SO 2 Allowances, permanently surrendering so that such SO 2 Allowances can never be used to meet any compliance requirement under the Clean Air Act or the Arizona

SIP. [ Significant Revision #46236, Condition II.I.1]

2. Except as provided in II.J.9, the Permittee shall not sell, trade, or transfer any

SO 2 Allowances allocated to CGS that would otherwise be available for sale, trade, or transfer as a result of the acti ons taken by the Permittee to comply with the requirements of this Permit. [ Significant Revision #46236, Condition II.I.2]

3. Beginning with calendar year 2012, the Permittee shall surrender to EPA, or transfer to a non-profit third party selected by the Permittee for purposes of surrender, all SO 2 Allowances that have been allocated to CGS in excess of the

amount needed to meet its own federal and/or state Clean Air Act regulatory requirements at CGS and Springerville Unit 4, which is located at the Springerville Generating Station. [ Significant Revision #46236, Condition II.I.3]

4. If the Permittee commences operation of one or more new coal-fired units that it owns in whole or in part in the Western Electricity Coordinating Council Region no earlier than five years and no later than fourteen years from the date the Consent Decree (Civil Action No. 2:08-cv- 1479-JAT) is entered by the Court, then the Permittee may also use SO 2 Allowances, as limited by this condition, allocated to CGS to meet the federal and/or state Clean Air Act regulatory requirements for certain SO 2 emissions from such new coal-fired unit(s).

a. The Permittee may only use such SO 2 Allowances pursuant to this condition if such new coal-fired unit( s) is equipped with the Best Available Control Technology (if the new coal-fired unit(s) will be emitting any of the pollutants set forth at 40 CFR 52.21(b)(50) and the new coal-fired unit(s) will be located in an attainment area for thosepollutants) and/or the Lowest Achievable Emission Rate (if the new coalfired unit(s) will be emitting any of the pollutants set forth at 40 CFRTV Permit Renewal Number 52639 Pa ge 45 of 79 December 06, 2011 SRP – Coronado Generating Station 51.165(a)(xxxvii) and the new coal-fi red unit(s) will be located in a nonattainment area for those pollutants).

b. The Permittee may only use SO 2 Allowances for the SO 2 emissions associated with a total of 400 megawatt s that it owns at such new coalfired unit(s), whether at one new coal-fired unit (e.g., the Permittee owns a total of at least 400 MW at one new coal-fired unit) or in the aggregate at multiple new coal-fired units (e .g., the Permittee owns 100 MW at four new coal-fired units for an aggregate total of 400 MW).

c. To determine the number of SO 2 Allowances the Permittee may use pursuant to this condition, the Permittee may use no more than the

number of SO 2 Allowances that cover the same percentage of total SO 2 emissions from such new coal-fired unit(s) as the percentage of the Permittee’s ownership in such new coal-fired unit(s), on a MW basis. Thus, for example, if the Permittee owns 400 MW of a new 800 MW

coal-fired unit that otherwise meets the requirements of this condition, the Permittee may use excess SO 2 Allowances allocate d to CGS to cover no more than fifty percent of the total SO 2 emissions from such new

coal-fired unit. This reduction in the amount of SO 2 Allowances surrendered by or on behalf of the Permittee would start with the year this new unit(s) commences operation.
[ Significant Revision #46236, Condition II.I.4]

5. The Permittee shall make its surrender of SO 2 Allowances, annually, within forty-five days of its receipt from EPA of the Annual Deduction Reports for SO 2

. Any surrender need not include the specific SO 2 Allowances that were allocated to CGS, so long as the Permittee surrenders SO 2 Allowances that are from the same year and that are equal to th e number required to be surrendered under

Condition II.J.
[ Significant Revision #46236, Condition II.I.5]

6. If any SO 2 Allowances are transferred direc tly to a non-profit third party for surrender to EPA, the Permittee shall include a description of such transfer in the next report submitted to EPA pursuant to Section XI (Periodic Reporting) of the Consent Decree (Civil Action No. 2:08-cv-1479-JAT). Such report shall:

a. Provide the identity of the non-profit third-party recipient(s) of the SO 2 Allowances and a listing of the serial numbers of the transferred SO 2 Allowances; and

b. Include a certification by the non-profit third-party recipient(s) stating that the recipient(s) will not sell, trade, or otherwise exchange any of the

SO 2 Allowances and will not use any of the SO 2 Allowances to meet any obligation imposed by any environmental law.
[ Significant Revision #46236, Condition II.I.6]

7. No later than the third periodic re port due after the transfer of any SO 2 Allowances, the Permittee shall include a st atement that the no n-profit third-party recipient(s) surrendered the SO 2 Allowances for permanent surrender to EPA in accordance with the provisions of II.J. 8 within 1 year after the PermitteeTV Permit Renewal Number 52639 Pa ge 46 of 79 December 06, 2011 SRP – Coronado Generating Station transferred the SO 2 Allowances to them. The Permittee shall not have complied

with the SO 2 Allowance surrender requirements of Condition II.J until all nonprofit third-party recipient(s) shall have actually surrendered the transferred SO 2 Allowances to EPA.
[ Significant Revision #46236, Condition II.I.7]

8. For all SO 2 Allowances surrendered to EPA, the Permittee or the non-profit third-party recipient(s) (as the case may be) shall first submit an SO 2 Allowance transfer request form to EPA’s Office of Air and Radiation’s Clean Air Markets Division directing the transfer of such SO 2 Allowances to the EPA Enforcement Surrender Account or to any other EPA account that EPA may direct in writing. As part of submitting these transfer requests, the Permittee or the non-profit third-party recipient(s) shall irrevocably authorize the transfer of these SO 2 Allowances and identify – by name of account and any applicable serial or other

identification numbers or station names – the source and location of the SO 2 Allowances being surrendered. [ Significant Revision #46236, Condition II.I.8]

9. Provided that the Permittee is in compliance with the SO 2 emission limitations established in Conditions II.G.1.a.ii and II.G.1.a.iii, nothing shall preclude the Permittee from using, selling, or transferring Super-Compliance SO 2 Allowances that may arise as a result of achieving and maintaining SO 2 emission rates or removal efficiencies at Unit 1 and Unit 2 below the emission limits required in Conditions II.G.1.a.ii and II.G.1.a.iii, so long as the Permittee timely reports the generation of such Super-Compliant SO 2 Allowances in accordance with Section XI (Periodic Reporting) of the Consen t Decree (Civil Action No. 2:08-cv-1479- JAT).
[ Significant Revision #46236, Condition II.I.9]

10. The Permittee shall not use SO 2 Allowances to comply with any requirement of the Permit, including by claiming compliance with any emission limitation required by the Permit by using, tendering, or otherwise applying SO 2 Allowances to offset any excess emissions (i.e., emissions above the limits specified in Conditions II.G.1.a.ii and II.G.1.a.iii).
[ Significant Revision #46236, Condition II.I.10]

11. Nothing in this Section shall prevent the Permittee from purchasing or otherwise obtaining SO 2 Allowances from another source for purposes of complying with state or federal Clean Air Act requirement s to the extent otherwise allowed by

law. [ Significant Revision #46236, Condition II.I.11]

12. Permit Shield [A.A.C. R18-2-325]

Compliance with this Section shall be deemed compliance with Significant

Revision # 46236 Condition II.I of Attachment “B”.

K . Mercury Emissions Control
[ State Enforceable Only] [Consent Order #A-17-09, & A.A.C. R 18-2-306.A.2] 1. The State Standards of Performance for Mercury Emissions from Coal-Fired Electric Steam Generating Units set forth in A.A.C. R18-2-734 shall not be apply to the Permittee until December 31, 2015.TV Permit Renewal Number 52639 Pa ge 47 of 79 December 06, 2011 SRP – Coronado Generating Station 2. The Permittee shall implement the Op eration and Maintenance (O&M) plan specified in Condition II.K.3 at all times beginning on January 1, 2012, and continue until December 31, 2015. The O&M plan does not impose any enforceable mercury emission limitations or require any commitments to achieve any mercury emission reductions.

3. Mercury Control Strategy O&M Plan

[A.A.C. R 18-2-306.A.2, 306.A.3.c, and 331.A.3.c ] [Material Permit Conditions is defined by underline and italic]

a. On or before January 1, 2012, the Permittee shall install , maintain, and operate on Unit 1 and Unit 2, mercury control technology by injecting a chemical oxidizer in the feed coal, designed to achieve a minimum of 70 percent reduction of total inlet me rcury on a facility-wide annual basis where “inlet mercury” means the average concentration of mercury in coal burned at the CGS facility, as determined by ASTM methods, EPA approved methods or an alternative method approved by the Director.

[A.A.C. R 18-2-331]

b. To the extent possible the Permittee shall, at all times after January 1, 2012, and until December 31, 2015, en sure that the mercury control system is operational when coal is combusted in Unit 1 and Unit 2.

[A.A.C. R 18-2-306.A.2]

c. The Permittee shall feed the chemical oxi dizer at a rate that is within the range established in accordance with Condition II.K.4.l. In the event that the rate of feeding of chemical oxidizer decreases below the minimum injection rates determined by Condition II.K.4.l, the Permittee shall submit a permit deviation report in accordance with Condition XII of

Attachment “A”.

[A.A.C. R 18-2-306.A.2]
d. In the event of change of the chem ical oxidizer, the Permittee shall reestablish the range of injection rates of the new chemical oxidizer to achieve 70 percent reduction as per Condition II.K.4.l.

[A.A.C. R 18-2-306.A.2]

e. In order to minimize the effect of emissions of entrained mercury from the wet scrubbers, the Permittee may inject one or more chemical

additives to the scrubbers.

[A.A.C. R 18-2-306.A.2]

f. The Permittee shall install and operate a flow meter or an equivalent

device to measure the chem ical oxidizer feed rate

. [A.A.C. R 18-2-306.A.2]

g. The Permittee shall monitor the instantaneous volumetric flow rate of the chemical oxidizer once every twelve hours.

[A.A.C. R 18-2-306.A.3.c]

h. The Permittee shall monitor the operation of chemical oxidizer feed pumps once every twelve hours when coal is combusted in the boilers.

[A.A.C. R 18-2-306.A.3.c]TV Permit Renewal Number 52639 Pa ge 48 of 79 December 06, 2011 SRP – Coronado Generating Station i. The Permittee shall monitor the chem ical oxidizer solution tank level once every twelve hours when coal is combusted in the boilers.

[A.A.C. R 18-2-306.A.3.c]

j. The Permittee shall maintain ve ndor documentation showing quality (concentration of chemical oxidizer) of each delivery of the reagent.

[A.A.C. R 18-2-306.A.3.c]

k. The Permittee shall maintain an adequate inventory of chemical oxidizer solution to support continuous feed.

[A.A.C. R 18-2-306.A.3.c]

l. The Permittee shall maintain an invent ory of critical spare parts for the chemical oxidizer feed pumps on site.

[A.A.C. R 18-2-306.A.3.c]

m. The Permittee shall follow maintenance requirements according to the frequency indicated below:

Equipment Maintenance Activity Frequency

Distribution header Inspect for plugging Once per operating week

Clean strainers Once per operating week Strainers

Replace gaskets Annually Metering pumps Calibrate Annually Storage tank Drain and inspect Annually Pressure gauges Calibrate Annually Distribution piping Visual inspection for

defects Annually

[A.A.C. R 18-2-306.A.3.c]

4. Monitoring, Recordkeeping, and Reporting for O & M Plan

[A.A.C. R18-2-306.A.3.c and -331.A.3.c] [Material Permit Conditions are indicated by underline and italics]

In order to demonstrate proper operation of the mercury control technology, the Permittee shall implement the following monitoring, recordkeeping, and reporting measures:

a. Perform coal analysis to determine the concentration of mercury in pounds per ton of coal from a represen tative sample of coal delivered to the facility. As an alternative to performing the coal analysis, data from the coal supplier may be used. The data shall be logged and averaged on a monthly basis. The monthly averag e inlet mercury concentration will be multiplied by the total monthly coal feed rate to determine a monthly inlet mercury mass.

b. Monitor and record the rate of chemical oxidizer solution feed to the coalTV Permit Renewal Number 52639 Pa ge 49 of 79 December 06, 2011 SRP – Coronado Generating Station feed during operation of the Unit 1 and Unit 2 once every twelve hours.

c. Install and maintain the mercury sorbent trap system in the stack of each unit in accordance with vendor specifications.

d. Sample the stack gas at a rate proportional to the stack gas volumetric flow rate. The Permittee shall, by using the sample volume measured by the dry gas meter and the result of the analyses of the sorbent traps, determine the average mercury concentration in the stack gas in units of micrograms per dry standard cubic meter.

e. Analyze the sorbent traps on-site or at a qualified off-site laboratory using an Ohio-Lumex desorption analyzer. When an appropriate protocol is provided by EPA, the Perm ittee shall calibrate the analyzer by using National Institute of Standards and Technology (NIST) traceable mercury standards.

f. Calculate the mercury outlet mass emissions for each hour by using the average mercury concentration for that period, in conjunction with hourly measurement of the stack flow rate, corrected for the stack gas

moisture content.

g. A monthly outlet mercury mass will be calculated by summing the mercury emission rates determined for each hour.

h. At the end of every month, calculate and record monthly facility-wide mercury reduction based on inlet and outlet mercury data from

Conditions II.K.4.a and II.K.4.f above.

i. Report facility-wide annual mercury removal percentage by January 31 st
of each year and shall contain the results for the preceding year. The first report for the calendar year 2012 shall be submitted by January 31,

2013.

j. Keep records of the monitoring c onditions pursuant to Condition II.K3.g, h, and i.

k. The Permittee shall conduct the annual certification of the monitoring systems in accordance with the app licable Quality Assurance/Quality Control (QA/QC) standard in effect at the time of certification.

l. Within 30 days of January 1, 2012 (the date on which the O & M Plan becomes enforceable) and within 30 days of change of chemical oxidant, the Permittee shall notify the Director with the following information:

i. Name and composition of the chemical oxidizer;

ii. Range of injection rates of the chemical oxidizer necessary to target a design mercury reduction of 70 percent; and

iii. Documentation of any pilot-scale tests demonstrating the efficacy of the alternative chemical oxidizers, as applicable.TV Permit Renewal Number 52639 Pa ge 50 of 79 December 06, 2011 SRP – Coronado Generating Station L. Application for Significant Permit Revision incorporating State Mercury Standards
[Significant Permit Revision #46236 Condition II.K]

The Permittee shall submit an application for a significant permit revision pursuant to A.A.C. R 18-2-734 (F) by no later than January 1, 2014, and to include the following

elements:

1. The State Mercury Standard and any amendments adopted by ADEQ to ensure that the State Mercury Standard is compatible with a MACT standard promulgated by EPA.

2. A control strategy for meeting the State Mercury Standard and any amendments thereto;

3. A demonstration that the control strategy is designed to meet the State Mercury Standard and any amendment thereto;

4. A proposal to comply with the State Mercury Standard by December 31, 2015, except as provided in A.A.C. R 18-2-734 (H), under the following conditions:

a. For the purposes of applying exceptio n established in A.A.C. R 18-2-734 (H), each date specified in that provision shall be increased by three calendar years;

b. The exception in A.A.C. R 18-2-734 (G) shall not apply.

III. AUXILIARY BOILER

A. Applicability

This section applies to the Auxiliary Boiler as described in Attachment “C” of this permit.

B. Fuel and Operational Requirements

1. Permittee shall burn only Number 2 fuel o il and used oil in the auxiliary boiler.

[A.A.C. R18-2-302.A.2]

2. Permittee shall not fire high sulfur oil (fuel sulfur content 0.9% by weight) as a

fuel unless the Permittee demonstrates to the satisfaction of the Director that sufficient quantities of low sulfur oil are not available for use by the source and that it has adequate facilities and conti ngency plans to insure that the sulfur dioxide ambient air quality standards set forth in A.A.C. R18-2-202 will not be

violated. [A.A.C. R18-2-724.G]

3. Permittee shall not operate the auxiliary boiler at an annual average capacity factor greater than 10%. The annual average capacity factor shall be defined as ratio between the actual heat input to the auxiliary boiler from the fuels burning during a calendar year, and the potential heat input to the auxiliary boiler had it been operating for 8,760 hours during a year at the maximum steady state design heat input capacity.TV Permit Renewal Number 52639 Pa ge 51 of 79 December 06, 2011 SRP – Coronado Generating Station [A.A.C. R18-2-306.01.A, 306.01, and 331.A.3] [Material Permit Conditions are defined by underline and italics]

4. Monitoring, Reporting, and Recordkeeping

a. Permittee shall maintain records of the daily fuel usage for the auxiliary

boiler. [A.A.C. R18-2-306.A.3.c]

b. At the end of each calendar year, th e Permittee shall calculate and record the heat input in million Btu per year and the annual capacity factor.

[A.A.C. R18-2-306.A.3.c]

c. Permittee shall keep on record the contractual agreement with the liquid fuel vendor indicating the following information concerning the liquid fuel being fired for each shipment of fuel oil:

i. The name of the fuel oil supplier; ii. The heating value of the fuel oil; iii. The density of the fuel oil; iv. The ash content of the fuel oil;

v. The sulfur content of the fuel oil from which the shipment came; vi. The method used to determine the ash content of the fuel oil; and

vii. The method used to determine the sulfur content of the fuel oil.

[A.A.C. R18-2-306.A.3.b]

d. The Permittee shall notify the Director within 30 days of any change in the contractual agreement.

[A.A.C. R18-2-306.A.3.c]
5. Permit Shield

Compliance with this Section shall be deemed compliance with A.A.C. R18-2- 724.G, and Permit #30732, Attachment B, Condition I.B.2.

[A.A.C. R18-2-325] C. Particulate Matter and Opacity

1. Emission Limitations/Standards

a. Particulate Matter & Opacity

Permittee shall not cause, allow or permit the emission of particulate

matter, caused by combustion of fuel, from the auxiliary boiler in excess of the amount calculated by the following equation:

E = 1.02 Q 0.769

Where: E = the maximum allowable particul ate emissions rate in pounds-mass per hour. Q = the heat input in million Btu per hour.

[A.A.C. R18-2-724.C.1]TV Permit Renewal Number 52639 Pa ge 52 of 79 December 06, 2011 SRP – Coronado Generating Station For the purposes of condition III.C.1.a of this Attachment, heat input is defined as the aggregate heat content of all fuels whose products of combustion pass through a stack or other outlet.

[A.A.C. R18-2-724.B]

b. Permittee shall not cause, allow or permit to be emitted into the atmosphere from the auxiliary boiler, smoke which exceeds 15 percent opacity measured in accordance with EPA Reference Method 9.

[A.A.C. R18-2-724.J]

2. Monitoring, Recordkeeping & Reporting

a. Permittee shall report all six-minute periods in which the opacity of any plume or effluent exceeds 15 percent from the auxiliary boiler.

[A.A.C. R18-2-724.J]

b. Permittee shall conduct weekly opaci ty monitoring of visible emissions. If the opacity of the emissions obser ved appears to exceed the relevant opacity standard, the observer sha ll conduct a certified EPA Reference

Method 9 observation. The Permittee sh all keep records of the initial survey and any EPA Reference Method 9 observations performed.

These records shall include the emi ssion point observed, location of observer, name of observer, date and time of observation, and the results of the observation. If the observation shows a Method 9 opacity reading in excess of the relevant opacity standard, the Permittee shall initiate appropriate corrective action to reduce the opacity below the standard. The Permittee shall keep a record of the corrective action performed.

[A.A.C. R18-2-306.A.3.c] 3. Permit Shield

Compliance with this Section shall be deemed compliance with A.A.C. R18-2- 724.B, A.A.C. R18-2-724, A.A.C. R18-2-724.C.1, A.A.C. R18-2-724.J, and Operating Permit #30732 Condition III.B.1.

[A.A.C. R18-2-325] D. Sulfur Dioxide

1. Emission Limitations/Standards

a. Permittee shall not cause, allow, or permit emission of more than 1.0 pounds of sul fur dioxide per million Btu heat input.

[A.A.C. R18-2-724.E]

b. For the purposes of Condition III.D.1.a of this Attachment, “heat input” is defined as the aggregate heat content of all fuels whose products of combustion pass through a stack or other outlet.

[A.A.C. R18-2-724.B]

2. Permit Shield

Compliance with this Section shall be deemed compliance with A.A.C. R18-2- 724.B, and A.A.C. R18-2-724.E. [A.A.C. R18-2-325]TV Permit Renewal Number 52639 Pa ge 53 of 79 December 06, 2011 SRP – Coronado Generating Station IV. INTERNAL COMBUSTION ENGINES (ICE)

A. Applicability

This section applies to the emergency genera tor identified in Attachment “C” of this permit.

B. Operational Limitation

1. Permittee shall only burn diesel fuel in the ICE located at the facility.

[A.A.C. R18-2-306.A.2]

2. The Permittee shall record the hours of operation of the emergency generator and at the end of each month calculate and record a 12 month rolling total.

[A.A.C. R18-2-306.A.3] C. Existing Source Requirements

1. Particulate Matter and Opacity

a. Emissions Limitations/Standards

i. The Permittee shall not cause or allow to be discharged into the atmosphere from the internal combustion engines any gases in which exhibit greater than 40% opacity.

[A.A.C. R18-2-719.E]

ii. The Permittee shall not cause, allow or permit the emission of particulate matter, caused by combustion of fuel, from the internal combustion engines having a heat input rate of 4200 million Btu per hour or less, in excess of the amounts calculated by the following equation:

E = 1.02*Q 0.769

where: E = the maximum allowable particulate emissions rate in pounds-mass per hour Q = the heat input in million BTU per hour.

[A.A.C. R18-2-719.C.1]

iii. For the purposes of Condition IV.C.1.b above, the heat input shall be the aggregate heat conten t of all fuels whose products of combustion pass through a stack or other outlet. Compliance tests shall be conducted during operation at the normal rated capacity of each unit. The total heat input of all operation generators and internal combustion engines on a plant or premises shall be used for determining the maximum allowable amount of particulate matter which may be emitted.

[A.A.C. R18-2-719.B]TV Permit Renewal Number 52639 Pa ge 54 of 79 December 06, 2011 SRP – Coronado Generating Station b. Monitoring, Recordkeeping and Reporting Requirements



### i. The Permittee shall monitor the lower heating value of the fuel being combusted in the internal combustion engines. The

Permittee shall maintain records of the lower heating value of the fuel fired in the internal combustion engines. This may be accomplished by maintaining on record a copy of fuel supplier certifications that specify the lower heating value of the fuel

. [A.A.C. R18-2-306.A.3.c and A.A.C. R18-2-719.I]

ii. For the internal combustion engines listed in Attachment “C”, Permittee shall conduct opacity monitoring in accordance with Condition I.B of this Attachment while the engine is in operation.

[A.A.C. R18-2-306.A.3.c] c. Permit Shield

Compliance with the conditions of this Section shall be deemed compliance with A.A.C. R18-2-719.B, A.A.C. R18-2-719.C.1, A.A.C.

R18-2-719.E and A.A.C. R18-2-719.I.

[A.A.C. R18-2-325]

2. Sulfur Dioxide

a. Emissions Limitations/Standards

The Permittee shall not burn high sulfur fuel only fuel which limits the emission of sulfur dioxide to 1.0 pound per million Btu heat input.

[A.A.C. R18-2-719.F and H]

b. Monitoring, Recordkeeping and Reporting Requirements

i. The Permittee shall monitor the su lfur content of the fuel being combusted in the internal combustion engines. The Permittee shall maintain records of the daily sulfur content and lower heating value of the fuel fired in the internal combustion engines. This may be accomplished by maintaining on record a copy of fuel supplier certifications that specify the sulfur content and lower heating value of the fuel.

[A.A.C. R18-2-306.A.3.c and A.A.C. R18-2-719.I]

ii. The Permittee shall report to the Director any daily period during which the sulfur content of the fuel being fired in the machine

exceeds 0.8%.

[A.A.C. R18-2-719.J and 306.A.3] c. Permit Shield

Compliance with the conditions of this Section shall be deemed compliance with A.A.C. R18-2-719.I, A.A.C. R18-2-719.J, A.A.C. R18- 2-719.H, and A.A.C. R18-2-719.F

. [A.A.C. R18-2-325]TV Permit Renewal Number 52639 Pa ge 55 of 79 December 06, 2011 SRP – Coronado Generating Station D. National Emissions Standards fo r Hazardous Air Pollutants (NESHAP) Requirements for Engines Less than 500 Horsepower

1. Applicability

a. This section is applicable to the emergency fire pump engine identified

in Attachment “C”.

b. The requirements of Condition IV.D shall become effective on May 3,

2013.



### 2. Operating Requirements [40 CFR 63.6605]



### a

. The Permittee shall operate and ma intain the emergency fire pump engine and monitoring equipment, in a manner consistent with safety and good air pollution control practices for minimizing emissions. The general duty to minimize emissions does not require the Permittee to make any further efforts to reduce emissions if levels required by this

standard have been achieved. Dete rmination of whether such operation and maintenance procedures are being used will be based on information available to the Administrator and the Director which may include, but is not limited to, monitoring results, re view of operation and maintenance procedures, review of operation and maintenance records, and inspection

of the source. [40 CFR 63.6605(b)]

b

. The Permittee shall minimize the engine's time spent at idle during startup and minimize the engine's startup time to a period needed for appropriate and safe loading of the engine, not to exceed 30 minutes, after which time the emission standards applicable to all times other than startup in Table 2c to 40 CFR Part 63 subpart ZZZZ apply.

c. The Permittee shall operate each IC E according to the requirements in following paragraphs IV.D.2.c.i and IV.D.2.c.ii of this section. If the engine is not operated according to the requirements in paragraphs IV.D.2.c.i and IV.D.2.c.ii of this Condition, the engine will not be considered an emergency engine a nd shall meet all requirements for nonemergency engines. [40 CFR 63.6640 (f)]

i. The Permittee may operate the emergency engines for the purpose of maintenance checks a nd readiness testing, provided that the tests are recommended by Federal, State, or local government, the manufacturer, the vendor, or the insurance company associated with the engine. Maintenance checks and readiness testing of the engine is limited to no more than 100 hours per year. The Permittee may petition the Administrator and the Director for approval of additional hours to be used for maintenance checks and readiness testing, but a petition is not required if the Permittee maintains records indicating that the Federal, State, or local standard s require maintenance and testing beyond 100 hours per year. Copies of records shall be madeTV Permit Renewal Number 52639 Pa ge 56 of 79 December 06, 2011 SRP – Coronado Generating Station available to ADEQ upon request.

ii. The Permittee may operate the em ergency engines for up to 50 hours per year in non-emergency situations, but those 50 hours are counted towards the 100 hours per year provided formaintenance and testing. The 50 hours per year for nonemergency situations cannot be used for peak shaving or to generate income for a facility to supply power to an electric grid or otherwise supply power as pa rt of a financial arrangement with another entity; except that the Permittee may operate the emergency engine for a maximum of 15 hours per year as part of a demand response program if the regional transmission organization or equivalent balanc ing authority and transmission operator has determined there are emergency conditions that could lead to a potential electrical blackout, such as unusually low frequency, equipment overload, capacity or energy deficiency, or unacceptable voltage level. The engine may not be operated for more than 30 minut es prior to the time when the emergency condition is expected to occur, and the engine operation must be terminated immediately after the facility is notified that the emergency cond ition is no longer imminent. The 15 hours per year of demand response operation are counted aspart of the 50 hours of operation per year provided for nonemergency situations. The s upply of emergency power to another entity or entities pursuant to financial arrangement is not limited by this paragraph, as long as the power provided by the financial arrangement is limited to emergency power.

e. The Permittee shall install a non-rese ttable hour meter on the emergency fire pump engine.
[40 CFR 63.6625(f), R18-2-331.A.3.a] [Material Permit Conditions are indicated by underline and italics]

f. The Permittee shall change oil and f ilter every 500 hours of operation or annually, whichever comes first. If the Permittee prefers to extend the oil change requirement, an oil analysis program as described in 40 CFR 63.6625(i) shall be completed.
[40 CFR 63.6603(a); Table 2d of Subpart ZZZZ; 63.6625(i)]

g. The Permittee shall inspect air clean er every 1,000 hours of operation or annually, whichever comes first;
[ 40 CFR 63.6603(a); Table 2d of Subpart ZZZZ]

h. The Permittee shall inspect all hoses and belts every 500 hours of operation or annually, whichever comes first, and replace as necessary.
[40 CFR 63.6603(a); Table 2d of Subpart ZZZZ]

i. The Permittee shall operate and ma intain the emergency fire pump engine according to the manufact urer's emission-related written instructions or develop a maintenance plan which must provide to the extent practicable for the maintenan ce and operation of the engine in a manner consistent with good air pollution control practice forTV Permit Renewal Number 52639 Pa ge 57 of 79 December 06, 2011 SRP – Coronado Generating Station minimizing emissions. [ 40 CFR 63.6625(e)].

3. Recordkeeping Requirements

a. The Permittee shall keep records of the hours of operation of each emergency engine that is recorded through the non-resettable hour meter. Records shall include the date, st art and stop times, hours spent for emergency operation, including what classified the operation as emergency and how many hours are sp ent for non-emergency operation.
[40 CFR 63.6655(f)]

b. If the Permittee elects to implement the oil analysis program described in 40 CFR 63.6625(i), the Permittee shall keep records of the parameters that are analyzed and the results of the oil analysis and the oil changes for the engine.
[40 CFR 63.6625(i)]

c. The Permittee shall keep records of the maintenance conducted on the emergency fire pump that demonstr ates operation and maintenance in accordance with the maintenance plan. [ 40 CFR 63.6655(e)]



### d. The Permittee shall document the hours spent for emergency operation, including what classified the operation as emergency and how many hours are spent for non-emergency operation. If the engines are used for demand response operation, the Perm ittee shall keep records of the notification of the emergency situa tion, and the time the engine was operated as part of demand response. [40 CFR 63.6655(f)]

4. Permit Shield

Compliance with the conditions of this S ection shall be deemed compliance with 40 CFR Part 63.6605(b); 63.6640(f); 63. 6625(i) & (f); 63.6603(a), 63.6655(e) & (f), Table 2d of 40 CFR subpart ZZZZ, 63.6655. [A.A.C. R18-2-325]

V. COAL HANDLING

A. Applicability

This section applies to the Coal Handling and the Coal Mixing systems as described in Attachment “C” of this permit.

B. Opacity

1. Emission Limitations/Standards

The Perm ittee shall not cause to be dischar ged into the atmosphere from any coal processing and conveying equipment including breakers and crushers, coal storage systems, and coal transfer and loading systems, any emissions greater than 20 percent opacity. [A.A.C. R18-2-702.B.3]TV Permit Renewal Number 52639 Pa ge 58 of 79 December 06, 2011 SRP – Coronado Generating Station 2. Monitoring, Recordkeeping & Reporting [A.A.C. R18-2-306.A.3.c]

Permittee shall conduct opacity monitori ng in accordance with Condition I.E of this Attachment. This weekly survey shall include observation of all exposed transfer points, enclosed transfer point s, the coal storage pile, and baghouses.

3. Permit Shield

Compliance with this section shall be deemed compliance with 702.B.

[A.A.C. R18-2-325]

C. Particulate Matter

1. Emission Limitations/Standards

a. Permittee shall not cause, allow or permit the discharge of particulate

matter into the atm osphere in an y one hour from any coal handling operation in total quantities in excess of the amounts calculated by the following equation:

E = 55.0 P 0.11 - 40

Where:

E = the maximum allowable partic ulate emissions rate in poundsmass per hour. P = the process weight rate in tons-mass per hour. The total process weight from all similar units employing a similar type process shall be used in determining the maximum allowable emission of particulate

matter.

[A.A.C. R18-2-716.B.2]

b. The total process weight rate from all similar units employing a similar type process shall be used in determining the maximum allowable emission of particulate matter. [A.A.C. R18-2-716.B.2]

2. Air Pollution Controls

When the coal handling and mixing system is operational, Permittee shall

maintain and operate the appropriate baghouses used to capture particulate

matter emissions associated with coal handling in accordance with manufacturer’s specification and in a m anner consistent with good air pollution control practices. Wet dust suppression sha ll be maintained and operated at the rotary car dumper during train unloading, at conveyor transfer points in the yard area, and at the stacking-reclaiming area. [A.A.C. R18-2-306.A.2 and 331.A.3.e] [Material Permit Conditions are defined by underline and italics]

3. Monitoring, Recordkeeping & Reporting

a. The manufacturer’s specifications sh all be on file and shall be readilyTV Permit Renewal Number 52639 Pa ge 59 of 79 December 06, 2011 SRP – Coronado Generating Station available for inspection by the Department. [A.A.C. R18-2-306.A.2]

b. Permittee shall maintain records of emissions related maintenance performed on the baghouses. [A.A.C. R18-2-306.A.3.c]

4. Permit Shield

Compliance with this Section shall be deemed compliance with A.A.C R18-2- 716.E, A.A.C. R18-2-716.B, and A.A.C. R18-2-716.D. [A.A.C. R18-2-325]

VI. LIMESTONE HANDLING

A. Applicability

This Section applies to the Upgraded Belt Conveyors (BC-101, BC101A), New Belt Conveyors (BC-101B and B), Upgraded Transfer Tower (TT-1), New Transfer Tower(TT-2), New Limestone Storage Bins A, B, & C, Wet Dust Extractors (DC-12 and DC13), and Bin Vent Dust Collectors (DC-14, DC-15, and DC-16) in the Limestone Handling Plant.

B. Particulate Matter and Opacity

1. Emission Limitations/Standards

a. Particulate Matter

i. The Permittee shall not cause to be discharged into the atmosphere from any transfer point on belt conveyors or fromany other affected facility any stack emissions (DC-12 and DC13) that contain PM in excess of 0.032 grams per dry standard cubic meter (0.014 gr/dscf)

. Bin vent filters (DC-14, DC-15, and DC-16) are exempt from this PM stack limit since these individually control emissions from the associated storage bin.
[40 CFR 60.672(a) & 60.672 (f)]

ii. The Permittee shall not cause to be discharged into the atmosphere from DC-12, DC-13, DC-14, DC-15, and DC-16 any

stack emissions that contain filterable PM/PM 10 in excess of 0.005 grains per actual cubic feet.

[A.A.C. R18-2-406.A.4] b. Opacity

i. The Permittee shall not cause to be discharged into the atmosphere from any storage bin any stack emissions that exhibit opacity greater than 7 percent opacity.
[40 CFR 60.672(a) and A.A.C. R18-2-331.A.3.f] [Material Permit Conditions is defined by underline and italics]

ii. On and after the sixtieth day after achieving the maximum production rate at which the affected facility will be operated, but not later than 180 days after initial startup as required under 40 CFR §60.11, the Permittee shall not cause to be dischargedTV Permit Renewal Number 52639 Pa ge 60 of 79 December 06, 2011 SRP – Coronado Generating Station into the atmosphere from any transfer point on belt conveyors or from any other affected facility any fugitive emissions which exhibit opacity greater than 7 percent.
[40 CFR 60.672(b) and A.A.C. R 18-2-331.A.3.f] [Material Permit Conditions is defined by underline and italics]

2. Air Pollution Control Equipment

At all times, including periods of startup, shutdown, and malfunction, the Permittee shall, to the extent practicable, install, maintain, and operate Wet Dust Extractors {DC-12 on Transfer Tower (TT- 1), DC-13 on Transfer Tower (TT-2)}, and Bin Vent Filters (DC-14,DC-15, and DC- 16 on Limestone Storage Bins A, B, & C) in a manner consistent with good air pollution control practice for minimizing PM emissions

. [40 CFR 60.11(d), A.A.C. R 18-2-306.01.A and -331.A.3.d & e] [Material Permit Conditions are defined by underline and italics ]

3

. Monitoring Requirements

a. The Permittee shall install, calibrate, maintain, and operate the following monitoring devices on the wet dust extractors (DC-12 and DC-13):

i. A device for the continuous measurement of the pressure loss of the gas stream through the scrubber. The monitoring device must be certified by the manufac turer to be accurate within ±250 pascals ±1 inch water gauge pressure and must be calibrated on an annual basis in accordance with manufacturer's instructions

.

ii. A device for the continuous measurement of the scrubbing liquid flow rate to the wet scrubber. The monitoring device must be certified by the manufacturer to be ac curate within ±5 percent of design scrubbing liquid flow rate and must be calibrated on an annual basis in accordance with manufacturer's instructions
[A.A.C. R 18-2-331.A.3.c and 40 CFR 60.674(a)] [Material Permit Conditions are defined by underline and italics]

b. The Permittee shall conduct quarterly 30-minute visible emissions inspections using EPA Method 22 ( 40 CFR part 60, Appendix A-7) on the Bin Vent Dust Collectors (DC-14, DC-15, and DC-16). The Method 22 ( 40 CFR part 60, Appendix A-7) test shall be conducted while the baghouse is operating. The test is successful if no visible emissions are observed. If any visible emissions ar e observed, the owner or operator of the affected facility must initiate corrective action within 24 hours to return the baghouse to normal operation. The owner or operator must record each Method 22 ( 40 CFR part 60, Appendix A-7) test, including the date and any corrective actions taken, in the logbook required under

Condition VI.B.4.a.

[40 CFR 60.674(c)] 4. Recordkeeping and Reporting Requirements

a. The Permittee shall record each periodic inspection required under Condition VI.B.3.b, including dates and any corrective actions taken, in aTV Permit Renewal Number 52639 Pa ge 61 of 79 December 06, 2011 SRP – Coronado Generating Station logbook (in written or electronic format). The Permittee shall keep the logbook onsite and make hard or electronic copies available to the Administrator upon request.
[40 CFR 60.676(b)]

b. During the initial performance test of the wet dust extractors (DC-12 and DC-13), and daily thereafter, the owner or operator shall record the measurements of both the change in pressure of the gas stream across the scrubber and the scrubbing liquid flow rate.

[40 CFR 60.676(c)]



### c. After the initial performance test of the wet dust extractors (DC-12 and DC-13), the owner or operator sha ll submit semiannual reports to the

Administrator of occurrences when the measurements of the scrubber pressure loss and liquid flow rate decrease by more than 30 percent from the average determined during th e most recent performance test.
[40 CFR 60.676(d)]

d. The reports required under Cond ition VI.B.4.c shall be postmarked within thirty days following end of second and fourth calendar quarters.

[40 CFR 60.676(e)]

e. The Permittee shall submit written reports of the results of all performance tests conducted to de monstrate compliance with the emission limit in Condition VI.B.1.a.i, including reports of opacity observations made using Method 9 to demonstrate compliance with

Condition VI.B.1.b.i.
[40 CFR 60.676(f)] 5. Notification Requirements
[40 CFR 60.676(h), 40 CFR 60.7.a (3)]

The Permittee shall furnish to the Director and the EPA written notification or, if acceptable, electronic notification of the actual date of initial startup of an affected facility postmarked within 15 days after such date.

6. Testing Requirements

a. Within 60 days after achieving the maximum production rate, but not later than 180 days after the installation of second flue gas desulfurization unit, the Permittee shall conduct an initial performance

test for PM & PM 10 for wet dust extractors (DC-12 and DC-13). The performance test shall be used to demonstrate compliance with the limits

in Condition VI.B.1.a..i and ii.

[40 CFR 60.8(A), A.A.C. R18-2-312] b. Within 60 days after achieving the maximum production rate at which the affected facility will be operated, but not later than 180 days after initial startup of such facility, the Permittee shall conduct an initialperformance test for opacity for bin vent filters (DC-14, DC-15 and DC16). The performance test shall be used to demonstrate compliance with the opacity limit in Condition VI.B.1.b.i.
[40 CFR 60.672(f), 60.675.(C)(2)]TV Permit Renewal Number 52639 Pa ge 62 of 79 December 06, 2011 SRP – Coronado Generating Station VII. FLY ASH HANDLING

A. Applicability

This section applies to the Fly Ash Handling Facility as described in Attachment “C” of this permit.

B. Opacity

1. Emission Limitations/Standards

The Permittee shall not cause to be dischar ged into the atmosphere from the Fly Ash Handling System any emissions greater than 20 percent opacity.

[A.A.C. R18-2-702.B.3]

2. Monitoring, Recordkeeping & Reporting

The Permittee shall conduct opacity mon itoring in accordance with Condition I.E of this Attachment. This weekly obs ervation shall include observation of all exposed transfer points, enclosed tran sfer points, the baghouses, and the mixer

unloader. [A.A.C. R18-2-306.A.3.b]

3. Permit Shield

Compliance with this Section shall be deemed compliance with A.A.C. R18-2-

702.B. [A.A.C. R18-2-325]

C. Particulate Matter

1. Permittee shall not cause, allow or permit the discharge of particulate matter i nto the atmosphere in any one hour from any fly ash handling operation in total quantities in excess of the amounts calculated by the following equation:

E = 55.0 P 0.11 - 40

Where:

E = the maximum allowable particul ate emissions rate in pounds-mass per

hour. P = the process weight rate in tons-mass per hour. The total process weight from all similar units employing a similar type process shall be used in determining the maximum allowable emission of particulate matter.

[A.A.C. R18-2-730.A.1.b]

2. Air Pollution Controls

When the fly ash handling system is operational, Permittee shall maintain and operate the associated Flex-Kleen baghouses, the Scientific baghouse, water spray header, pugmill and the mixer unloa der used to minimize particulate matter emissions associated with fly ash handling in accordance with manufacturer’s specification and in a m anner consistent with good air pollutionTV Permit Renewal Number 52639 Pa ge 63 of 79 December 06, 2011 SRP – Coronado Generating Station control practices. [A.A.C. R18-2-306.A.2 and 331] [Material Permit Conditions are defined by underline and italics]

3. Monitoring, Recordkeeping & Reporting

a. The manufacturer’s specifications sh all be on file and shall be readily available for inspection by the Department.

[A.A.C. R18-2-306.A.2]

b. Permittee shall maintain records of emissions related maintenance performed on the baghouses and mixer unloader

. [A.A.C. R18-2-306.A.3.c]

4. Permit Shield

Compliance with this Section shall be deemed compliance with A.A.C. R18-2-

730.A.1.b. [A.A.C. R18-2-325]

D. Odorous Materials

1. Permittee shall not emit gaseous or odorous materials from equipment, operations or premises in such quanti ties or concentrations as to cause air pollution. [A.A.C. R18-2-730.D]

2. Where a stack, vent or other outlet is at such a level that fumes, gas mist, odor, smoke, vapor or any combination thereof constituting air pollution is discharged to adjoining property, the Director ma y require the installation of abatement equipment or the alteration of such stack, vent, or other outlet by the Permittee thereof to a degree that will adequately dilute, reduce or eliminate the discharge of air pollution to adjoining property. [A.A.C. R18-2-730.G]

3. Permit Shield

Compliance with this section shall be deemed compliance with A.A.C. R18- 730.D, and A.A.C. R18-2-730.G. [A.A.C. R18-2-325]

VIII. COOLING TOWERS 1 AND 2

A. Applicability

This Section applies to Cooling Towers 1 and 2 as described in A ttachment “C” of this permit.

B. Opacity

1. Emissions Standards/ Limitations

The Perm ittee shall not cause to be di scharged into the atmosphere from theTV Permit Renewal Number 52639 Pa ge 64 of 79 December 06, 2011 SRP – Coronado Generating Station cooling towers any emissions greater than 20 percent opacity.

[A.A.C. R18-2-702.B.3]

2. Monitoring, Recordkeeping & Reporting

The Permittee shall conduct opacity monitoring for the cooling towers in

accordance with Condition I.B of this Attachment.

[A.A.C. R18-2-306.A.3.b]
3. Permit Shield

Compliance with this Section shall be deemed compliance with A.A.C. R18-2-

702.B. [A.A.C. R18-2-325]

C. Particulate Matter

1. Permittee shall not discharge particulat e matter into the at mosphere in any one hour from the cooling towers in total quantities in excess of the amounts calculated by the following equation: [A.A.C. R18-2-730.A.1]

E = 55.0 P 0.11 - 40

Where:

E = the maximum allowable particul ate emissions rate in pounds-mass per

hour. P = the process weight rate in tons -mass per hour. The total process weight from all similar units employing a similar type process shall be used in determining the maximum allowable emission of particulate matter.

2. Permit Shield

Co mpliance with this Section shall be deemed compliance with A.A.C. R18-2-

730.A.1. [A.A.C. R18-2-325]

D. Odorous Materials

1. Permittee shall not emit gaseous or odorous materials from equipment, operations or premises in such quanti ties or concentrations as to cause air pollution. [A.A.C. R18-2-730.D]

2. Where a stack, vent or other outlet is at such a level that fumes, gas mist, odor, smoke, vapor or any combination thereof constituting air pollution is discharged to adjoining property, the Director ma y require the installation of abatement equipment or the alteration of such stack, vent, or other outlet by the Permittee thereof to a degree that will adequately dilute, reduce or eliminate the discharge of air pollution to adjoining property. [A.A.C. R18-2-730.G]

3. Permit Shield

Compliance with this Section shall be deemed compliance with A.A.C. R18-2-TV Permit Renewal Number 52639 Pa ge 65 of 79 December 06, 2011 SRP – Coronado Generating Station 730.D, A.A.C. and R18-2-730.G. [A.A.C. R18-2-325]

IX. USED OIL SPECIFICATIONS

A. Emission Limitations/Standards

1. Permittee may burn used oil or used oil fuel if the following conditions are met:

a. The flash point of the oil does not fall below 100o F;

b. The oil does not have following c ontaminants in excess of the following

levels:

(1) Arsenic 5 ppm (2) Cadmium 2 ppm (3) Chromium 10 ppm (4) Lead 100 ppm (5) PCBs 2 ppm (6) Total Halogens 1000 ppm

[A.R.S. 49-426.G.1]

c. Used oil or used oil fuel blended with virgin fuel oil does not exceed 5% of the total fuel in any fuel storage tank.
[Operating Permit #30732, Attachme nt B, Condition IX.A.1.c]
2. Limitations

a. Permittee shall not burn Hazardous Waste or Hazardous Waste Fuel as defined by A.R.S. 49-921 at th e Coronado Generating Facility.
[Operating Permit #30732, Attachme nt B, Condition IX.A.2.a]

b. The amount of used oil consumed shall not exceed 350 barrels annually.
[Operating Permit #30732, Attachme nt B, Condition IX.A.2.b]

B. Monitoring/Recordkeeping/Reporting

1. All tests conducted pursuant to Conditi on IX.C of this Attachment shall be documented and a report submitted to the Department along w ith the semi-annual compliance certification.

2. Permittee shall maintain such record s as required to document the use of the above fuel including the following:

a. Dates on which used oil or used oil fuel was burned; b. Hours of usage of the used oil or used oil fuel; and c. The quantity of used oil or used oil fuel burned.

d. Amount of used oil burned in each boiler.

C. Testing Requirements [A.R.S. 49-426.G.2]

1. All used oil or used oil fuel sample s shall be tested prior to burning for chlorinated solvents by EPA Method 9077.TV Permit Renewal Number 52639 Pa ge 66 of 79 December 06, 2011 SRP – Coronado Generating Station 2. A representative sample from each source of used oil or used oil fuel shall be tested annually for Arsenic, Cadmium, Chromium, and Lead using approved EPA methods prior to burning.

D. Permit Shield

Compliance with this Section shall be deemed compliance with A.R.S. 49-426.G.1, Permit #30732, Attachment B, Condition IX.A.1.c, Condition IX.A.2.a, and Condition

IX.A.2.b.

[A.A.C. R18-2-325]

X. FUGITIVE EMISSIONS

A. Emission Limitations/Standards

1. Open Areas, Roadways & Streets, Storage Piles, and Material Handling

a. Permittee shall not cause, allow or permit visible emissions from open

areas, roadways and streets, storage piles or material handling in excess of 40 percent opacity measured in accordance with the Arizona Testing Manual, Reference Method 9

. [A.A.C. R18-2-612]

b. Permittee shall employ one or more of the following reasonable precautions to prevent excessive amounts of particulate matter from becoming airborne:

i. Use approved dust suppressants, adhesive soil stabilizer, paving, covering, detouring, or wetting agents on, or bar access to open areas during construction ope rations, repair operations, demolition activities, clearing operations, and leveling operations, or when any earth is moved or excavated;

[A.A.C. R18-2-604.A]

ii. Use approved dust suppressants, adhesive soil stabilizer, or paving on, or bar access to driveways, parking areas, and vacant lots where motor vehicular activity occurs;

[A.A.C. R18-2-604.A and B]

iii. Use approved dust suppressants, te mporary paving, detouring or wetting agents when a roadway is repaired, constructed, or reconstructed; [A.A.C. R18-2-605.A]

(4) Use dust suppressants, wetting agents, or cover the load adequately when transporting material likely to give rise to airborne dust; [A.A.C. R18-2-605.B]

iv. Use spray bars, hoods, wetti ng agents, dust suppressants, or cover when crushing, screening, handling, transporting, or conveying material that is likely to give rise to airborne dust;

[A.A.C. R18-2-606]TV Permit Renewal Number 52639 Pa ge 67 of 79 December 06, 2011 SRP – Coronado Generating Station v. Adequately cover, or use wetting agents, chemical stabilization, or dust suppressants when stacking, piling, or otherwise storing organic or inorganic dust producing material ; [A.A.C. R18-2-607.A]

vi. Operate stacking and reclaiming machinery utilized at storage piles at all times with a minimum fall of material and with the use of spray bars and wetting agents;

[A.A.C. R18-2-607.B]

vii. Use wetting agents or dust s uppressants before the cleaning of site, roadway, or alley. Earth or other material shall be removed from paved streets onto which earth or other material has been transported by trucking or earth moving equipment, erosion by water or by other means; or

[A.A.C. R18-2-804.B]

viii. Any other method as proposed by the Permittee and approved by

the Director. [A.A.C. R18-2-325]

B. Monitoring, Recordkeeping & Reporting

1. Open Areas, Roadways & Streets, St orage Piles, and Material Handling

a. Bi-Weekly Monitoring Requirements

A certified EPA Reference Method 9 observer shall conduct a bi-weekly (once every two weeks) survey of visible emissions. If the opacity of the emissions observed appears to exceed the relevant opacity standard, the

observer shall conduct a certified EPA Reference Method 9 opacity reading. The Permittee shall keep r ecords of the initial survey and any EPA Reference Method 9 opacity readings performed. These records shall include the emission point observed, location of observer, name of observer, date and time of observation, and the results of the observation. If the Method 9 opacity reading show s in excess of the relevant opacity standard, the Permittee shall initiate appropriate corrective action to reduce the opacity below the standard. The Permittee shall keep a record of the corrective action performed.

b. Permittee shall maintain records of the dates on which any of the activities listed in condition X.A.1.b.i through ix of this Attachment were performed and control measures employed.

[A.A.C. R18-2-306.A.3.b]

2. Open Burning

The Permittee shall maintain copies of all open burning permits on file.

C. Permit Shield

Compliance with the conditions of this part shall be deemed compliance withTV Permit Renewal Number 52639 Pa ge 68 of 79 December 06, 2011 SRP – Coronado Generating Station A.A.C.R18-2-602, -604.A,-604.B, -605.A, -605B, -606, -607.A, -607.B, -612, and

A.A.C.R18-2-804.B. [A.A.C. R18-2-325]

XI. OTHER PERIODIC ACTIVITIES

A. Emission Limitations/Standards

1. Abrasive Blasting

a. The Permittee shall not cause or allow sandblasting or other abrasive blasting without minimizing dust emis sions to the atmosphere through the use of good modern practices. Good modern practices include:

(1) Wet blasting; (2) Effective enclosures with necessary dust collecting equipment;

or (3) Any other method as approved by the Director.

[A.A.C. R18-2-726]

b. The Permittee shall not cause to be discharged into the atmosphere from sandblasting or other abrasive blasti ng operations any emissions greater than 20 percent opacity.

[A.A.C. R18-2-702.B.3]

2. Use of Paints

While performing spray painting operations the Permittee shall comply with the following requirements:

a. The Permittee shall not conduct any spray painting operation without minimizing organic solvent emissions. Such operations other than architectural coating and spot paintin g shall be conducted in an enclosed area equipped with controls containing no less than 96 percent of the

overspray. [A.A.C. R18-2-727.A]

b. The Permittee shall not either:

(1) Employ, apply, evaporate or dry any architectural coating containing photochemically reactiv e solvents for industrial or commercial purposes; or

(2) Thin or dilute any architectur al coating with a photochemically

reactive solvent. [A.A.C. R18-2-727.B]

c. For the purposes of part b. and e. of this condition, a photochemically reactive solvent shall be any solvent w ith an aggregate of more than 20 percent of its total volume composed of the chemical compounds classified in paragraphs (1) through (3) of this subsection, or which exceeds any of the following percentage composition limitations,

referred to the total volume of solvent:

(1) A combination of the following types of compounds having anTV Permit Renewal Number 52639 Pa ge 69 of 79 December 06, 2011 SRP – Coronado Generating Station olefinic or cyclo-olefinic type of unsaturation - hydrocarbons, alcohols, aldehydes, esters, ethers, or ketones: five percent

(2) A combination of aromatic compounds with eight or more carbon atoms to the molecule except ethylbenzene: eight percent

(3) A combination of ethylbenzene, ketones having branched hydrocarbon structures, trichlor oethylene or toluene: twenty

percent.
[A.A.C. R18-2-727.C]

d. Whenever any organic solvent or any constituent of an organic solvent may be classified from it’s chemical st ructure into more than one of the groups or organic compounds described in subsection c(1) through c(3) of this condition, it shall be consid ered to be a member of the group having the least allowable percent of the total volume of solvents.

[A.A.C. R18-2-727.D] 3. Surface Coating Operation

a. The Permittee shall not operate an y surface coating application systems that emits volatile organic compounds in excess of the following:

(1) 4.3 pounds per gallon (0.5 kilograms per liter) of coating, excluding water, delivered to a coating applicator that applies clear coatings.

(2) 3.5 pounds per gallon (0.42 k ilograms per liter) of coating, excluding water, delivered to a co ating applicator in a coating application system that is air dried or forced warm air dried at temperatures up to 194 o F (90 o C).

(3) 3.5 pounds per gallon (0.42 k ilograms per liter) of coating, excluding water, delivered to a coating applicator that applies extreme performance coatings.

(4) 3.0 pounds per gallon (0.36 k ilograms per liter) of coating, excluding water, delivered to a coating applicator for all other coatings and application systems.

b. If more than one emission limitation in paragraph XI.A.3.a above applies to a specific coating, then the least stringent emissions limitation shall be applied.

c. All VOC emissions from solvent wash ings shall be considered in the emissions limitations listed in pa ragraph XI.A.3.a above, unless the

solvent is directed to containers that prevent evaporation to the atmosphere.

[A.A.C R18-2-730.L] 4. Vapor Extractors

Materials including solvents or other volatile compounds shall be processed,TV Permit Renewal Number 52639 Pa ge 70 of 79 December 06, 2011 SRP – Coronado Generating Station stored, used and transported in such a manner and by such means that they will not evaporate, leak, escape or be otherwi se discharged into the ambient air so as to cause or contribute to air pollution. Where means are available to reduce effectively the contribution to air po llution from evaporation, leakage or discharge, the installation and use of such control methods, devices, or equipment shall be mandatory.

[A.A.C. R18-2-730.F] 5. Landfill Operations

Permittee shall not emit gaseous or odorous materials from the landfill operations in such quantities or concentrations to cause air pollution

. [A.A.C. R18-2-730.D]

6. Mobile Sources

a. Classification

The requirements of this condition are applicable to mobile sources which either move while emitting air contaminants or are frequently moved during the course of their utilization but are not classified as motor vehicles, agricultural vehicles, or are agricultural equipment used in normal farm operations. Mobile sources shall not include portable

sources as defined in A.A.C. R18-2-101.84. [A.A.C. R18-2-801]

b. Roadway and Site Cleaning Machinery

Permittee shall not cause, allow or permit to be emitted into the atmosphere from any roadway and site cleaning machinery smoke or dust for any period greater than ten consecutive seconds, the opacity of which exceeds 40 percent. Visible emissions when starting cold equipment shall be exempt from this requirement for the first ten

minutes. [A.A.C. R18-2-804.A]

7. Demolition/Renovation

Permittee shall comply with the applicable requirements of 40 CFR 61 Subpart M (National Emissions Standards for Hazardous Air Pollutants - Asbestos).

[A.A.C. R18-2-1101.A.8]

B. Monitoring, Recordkeeping, and Reporting [A.A.C. R18-2-306.A.3.c]

1. Abrasive Blasting

Each time an abrasive blasting project is conducted, the Permittee shall maintain records of the following:

a. The date the project was conducted; b. The duration of the project; and c. Type of control measures employed.TV Permit Renewal Number 52639 Pa ge 71 of 79 December 06, 2011 SRP – Coronado Generating Station 2. Use of Paints

a. Each time a spray painting project is conducted, the Permittee shall log in ink or in an electronic format, a record of the following:

(1) The date the project was conducted; (2) The duration of the project; (3) Type of control measures employed; and (4) Material Safety Data Sheets for all paints and solvents used in the project.

b. Architectural coating and spot pain ting projects shall be exempt from the recordkeeping requirements of part a. above.

3. Mobile Sources

Permittee shall keep a record of all emissions related maintenance activities performed on Permittee's mobile sources stationed at the facility as per manufacturer’s specifications.

4. Demolition/Renovation

Permittee shall keep all required records in a file. The required records include

the ANESHAP Notification for Renovation and Demolition Activities form and all supporting documents.

5. Surface coating activities [A.A.C R18-2-306.A.3.c]

a. The Permittee shall log in ink or keep in an electronic format a records of the following:

(1) The date the project was conducted; (2) the duration of the project; (3) type of control measures employed (4) amount of surface coating used for the project (5) copies of the material safety and data sheets (MSDS) for each surface coating applied.

b. Permittee shall use vendor provided information to ensure that the surface coating materials being used satisfy the standards in Section XI.A.3.a of Attachment B. In the absence of vendor provided information, Permittee shall perform engineering calculations using the density and VOC content of the surface coating in order to compare against the standards set forth in Section XI.A.3.a of Attachment B.

C. Permit Shield

Compliance with this Section shall be deem ed compliance with A.A.C. R18-2-702.B.C, R18-2-702.B.3, R18-2-726, R18-2-727.A, R18-2-727.B, R18-2-727.C, R18-2-727.D, R18-2-730.D, R18-2-730.F, and R18-2-730.L, andR18-2-1101.A.8.

[A.A.C. R18-2-325]TV Permit Renewal Number 52639 Pa ge 72 of 79 December 06, 2011 SRP – Coronado Generating Station XII. COAL ADDITIVE SODA ASH SILO

A. Applicability

This section applies to the Coal Additive Soda Ash Silo as described in Attachment “C” of this permit.

B. Opacity

1. Emission Limitation/Standards

[A.A.C. R 18-2-702.B.3]

The Permittee shall not cause, allow or permit the opacity of any plume or

effluent from the coal additive soda ash silo to exceed 20 percent.

2. Monitoring/Recordkeeping/Recording

[A.A.C. R 18-2-306.A.3.c]

Permittee shall conduct weekly opacity monitoring of the baghouse associated

with the coal additive soda ash silo in accordance with Condition I.B of this Attachment when the coal additive soda ash silo is operational.

C. Particulate Matter

1. Emission Limitation/Standards

a. Permittee shall not cause, allow or permit the discharge of particulate matter into the atmosphere in any one hour from the coal additive soda ash silo in total quantities in excess of the amounts calculated by the following equation:

E = 4.10 P 0.67

Where:

E = the maximum allowable particulate emissions rate in poundsmass per hour.

P = the process weight rate in tons-mass per hour.

[A.A.C. R18-2-730.A.1.a]

b. The total process weight from all similar units employing a similar type process shall be used in determining the maximum allowable emission of particulate matter.

[A.A.C. R18-2-730.B]

2. Air Pollution Controls

When the coal additive soda ash silo is operational, Permittee shall maintain and operate the baghouse used to capture par ticulate matter emissions associated with the coal additive soda ash silo in accordance with manufacturer’sTV Permit Renewal Number 52639 Pa ge 73 of 79 December 06, 2011 SRP – Coronado Generating Station specification and in a manner consiste nt with good air pollution control practices

. [A.A.C. R18-2-306.A.2 and 331.A.3.e] [Material Permit Conditions are de fined by underline and italics]

3. Monitoring/Recordkeeping/Reporting

a. The manufacturer’s specifications sh all be on file and shall be readily available for inspection by the Department.

[A.A.C. R18-2-306.A.2]

b. Permittee shall maintain records of emissions related maintenance performed on the coal additive soda ash silo baghouse.

[A.A.C. R18-2-306.A.3.c]TV Permit Renewal Number 52639 Pa ge 74 of 79 December 06, 2011 SRP – Coronado Generating Station ATTACHMENT “C”: EQUIPMENT LIST

Air Quality Control Perm it No. 52639

for Salt River Project -Coronado Generating Station

EQUIPMENT TYPE MAX.

CAPACITY QUANTITY MODEL SERIAL # / EQUIPMENT # INSTALLED

/MFG DATE



### Steam Generation

Unit 1 Boiler 4719 MMBtu/hr 1 Riley Stoker Corporation 3901 7/25/1974

Unit 2 Boiler 4719 MMBtu/hr 1 Riley Stoker Corporation 3902 7/25/1974

Auxiliary Boiler 157

MMBtu/hr 1 Combustion Engineering CFAABOIL 7/25/1974

Coal Pulverizers 145,000 lb/hr 6 Riley Stoker Corporation 1BAFMILLA,B,C 2BAFMILLA,B,C 7/25/1974

Pulverizer Feeder

Unit 1 145,000 lb/hr 6 Riley Stoker Corporation 1BAFFDR1A1,1A2, 1B1,1B2,1C1,1C2 7/25/1974

Pulverizer Feeder

Unit 2 145,000 lb/hr 6 Riley Stoker Corporation 2BAFFDR2A1,2A2, 2B1,2B2,2C1,2C2 7/25/1974

Cooling Tower 1 179900 gpm 1 Marley Company

664-4-14 1DABSTRU 7/25/1974

Cooling Tower 2 179900 gpm 1 Marley Company

664-4-14 2DABSTRU 7/25/1974

Hot Side

Electrostatic Precipitators 2,800,000 acfm 4 Joy-Western 1JPAPREC0002, 1JPAPREC0005, 2JPAPREC0080,

2JPAPREC0082 7/25/1974

Sulfur Dioxide

Scrubbers 378,000 scfm 4 Pullman Kellog 1JSAMODUA,

1JSAMODUB 7/25/1974

Sulfur Dioxide

Absorbers 2,028,184 acfm Design flow/unit 2 Alstom 1WRAABS

2WRAABS TBD

5/20/2011

Low-NOx Burners 4719 MMBtu/hr (total/boiler) 24/boiler Babcock Power 1BAEBURNNFR

2BAEBURNNFR 5/19/2009

5/20/2011 Selective Catalytic Reduction System TBD 1 TBD TBD TBD

Calcium Bromide Injection System TBD 2 Alstom TBD TBD



### Coal Handling System

Rotary Car Dumper 100,000 lbs 1 Heyl & Patterson CJKADUMPRCD 7/24/1974

Track Hopper 500 tons 1 Heyl & Patterson CJKAHOPP 7/24/1974

Coal Crusher 1200 tph 2 Penns ylvania Crusher CJKACRUSACL, CJKACRUSBCL, 7/24/1974

Track Hopper Feeder 750 tph 4 FMC CJKAFDRV1,2, 3, 4 7/24/1974TV Permit Renewal Number 52639 Pa ge 75 of 79 December 06, 2011 SRP – Coronado Generating Station Belt Conveyor BC-2A 3000 tph 1 FMC CJKCONVB2A 7/24/1974

Belt Conveyor BC-4 3000 tph 1 FMC CJKCONVBC4 7/24/1974

Belt Conveyor BC-5 1200 tph 1 FMC CJKCONVBC5 7/24/1974

Belt Conveyor BC-6 1200 tph 1 FMC CJKCONVBC6 7/24/1974

Belt Conveyor BC-7A &

BC-7B 1200 tph 2 FMC CJKCONVB7A, 7B 7/24/1974

Belt Conveyor BC-8A &

BC-8B 1200 tph 2 FMC 2JKCONVB8A, 8B 7/24/1974

Belt Conveyor BC-9A, BC-9B, BC-10A, & BC-10B 1200 tph 4 FMC 1JKCONVB9A, 9B 2JKCONV10A, 10B 7/24/1974

Emergency Hopper 280 tons 1 FMC CJKAHOPPRCL 7/24/1974

Emergency Hopper Feeder 1000 tph 2 FMC CJKAFDRAER

CJKAFDRBER 7/24/1974

Crusher Surge Bin 345 tons 1 FMC CJKABINBNC 7/24/1974

Surge Bin Feeder 1200 tph 2 FMC CJKAFDRASB

CJKAFDRBSB 7/24/1974

Coal Sampling System N/A 1 FMC HP-76-134 7/24/1974

Sampling Building Dust

Collector 7200 cfm 1 FMC

Coal Silos 825 tons 6 FMC 1JKASILO1A, 1B, 1C 2JKASILO2A, 2B, 2C 7/24/1974

Dust Extractor 2 17,000 CFM 1 Engart CJKABACDC2 1/12/2008

Dust Extractor 3 22,000 CFM 1 Engart 1JKACOLLDC3 2/15/2009

Dust Extractor 4 22,000 CFM 1 Engart 2JKACOLLDC4 4/17/2007

Dust Extractor 5 6,000 CFM 6 Engart 1JKACOLLDC5 2/5/2009



### Coal Mixing System

Belt Conveyor BC-3A 3000 tph 1 Continental Conveyor and Equip. CJKACONVB3A 7/24/1974

Belt Conveyor BC-3B 1200 tph 1 Continental Conveyor and Equip CJKAFCONVB3B 7/24/1974

Belt Conveyor BC-3C 1200 tph 1 Continental Conveyor and Equip CJKAFCONVB3C 7/24/1974

Belt Feeder CM1 1200 tph 1 N/A CJKACONVCM1 7/24/1974

Transfer Hopper CM1 40 tons 1 N/A CJKAHOPPXFR 7/24/1974

Coal Storage Piles 1200 tph 2

Rotary Plow Feeders 600 tph 3 Continental Conveyor and Equip CJKAFDRCMI, M2, M3, M4 7/24/1974

Coal Crusher 1200 tph 1TV Permit Renewal Number 52639 Pa ge 76 of 79 December 06, 2011 SRP – Coronado Generating Station Traveling Boom Stacker 3000 t ph 1 Stephens-Adamson CJKASTACCL 7/24/1974



### Fly Ash Handling System

Fly Ash Storage Silos 62,800 ft 3 2 Allen-Sherman-Hoff 1JNASILOFAS

2JNASILOFAS 7/24/1974

Fly Ash Storage Silos Dust

Collectors 2375 CFM 10 Flex-Kleen 1JNAFLTRAEBA,
B,...E 2JNAFLTRAEBA,
B,...E 7/24/1974

Fly Ash Receiving Silos

Dust Collectors 15,000 CFM 1 Scientific CJNAMRTDC1 2002



### Limestone Handling System

Limestone Truck Unloading Hopper 30 tons 1 McNally Pittsburgh CJSAHOPPTUL 7/24/1974

Limestone Truck Unloading Hopper Feeder 200 tph 1 Marathon Electric Mfg. C-M-JS-R-5910 6/23/2009

Limestone Belt Conveyor

BC-101 200 tph 1 Varo C-M-JS-R-5911 6/23/2009

Limestone Belt Conveyor

BC-101A 200 tph 1 Varo C-M-JS-R-5914 6/23/2009

Limestone Belt Conveyor

BC-101B 200 tph 1 Varo TBD TBD

Limestone Belt Conveyor B 200 tph 1 TBD TBD TBD

Limestone Ball Mill 18 tph 1 TBD TBD TBD

Limestone Transfer Tower TT-1 Wet Dust Collector,

DC-12 17,000 cfm 1 Engart/Benetech 211021 6/23/2009

Limestone Transfer Tower, TT-2 Wet Dust Collector,

DC-13 13,000 cfm 1 Engart/Benetech 211022 6/23/2009

Limestone Storage

Bin A 73 tons 1

- C-M-JS-R-5917 6/23/2009

Limestone Storage

Bin B 73 tons 1

- C-M-JS-R-5921 6/23/2009

Limestone Storage Bin C 250 tons 1

- - -

Limestone Storage Bin Vent Filter, DC-14 600 scfm 1 Met-Pro Flex Kleen

Division 11918 6/23/2009

Limestone Storage Bin Vent Filter, DC-15 600 scfm 1 Met-Pro Flex Kleen

Division 11918 6/23/2009

New Limestone Storage Silo Bin Vent Filter, DC-16 1,000

ACFM 1 TBD TBD TBD



### Soda Ash Handling SystemTV Permit Renewal Number 52639 Pa ge 77 of 79 December 06, 2011 SRP – Coronado Generating Station Coal Additive Soda Ash Silo 3,000 cubic

feet 1 CHEMCO Systems,

L.P. SILO-12 2003



### Other Control Equipment

Sandblast Building Baghouse N/A 1 N/A CZHACOLLDC001 2001

Lime Silo Baghouse 300 CFM 1 Peabody CARACOLL135 7/24/1974

Soda Ash Silo Baghouse 300 CFM 1 Peabody CARACOLL134 7/24/1974

Weld Shop Baghouse N/A 2 Torit UNIT1 IG569313

UNIT2 IG569313 N/A

Paint Booth Filter N/A 1 N/A CZAAFLTR0001 N/A

Coal Additive Soda Ash Silo Baghouse 750 CFM 1 CHEMCO Systems,

L.P. DC-12 2003



### Internal Combustion Engines

Fire Booster Pump 800 hp 1 Cummins 10644000 1977

Emergency Generator 938 hp 1 Detroit Diesel 501681 1978

Emergency Fire Pump 266 hp 1 Caterpillar 64Z09303 1977

N/A = Not applicable

Continuous Monitoring Equipment for Units 1 and 2

Steam Unit NO

x Monitor SO 2 Monitor CO 2 Monitor Opacity

Monitor Flow Monitor

Unit 1 TECO 42C TECO 43C TECO 41C EMS 1304 Panametrics Model

CEM 68-29-2201-0

Serial #225

Unit 2 TEI 43i TEI 43i TEI 410i TML Lighthawk –

560 EMRC DP-75

EMRC DP-75

Steam Unit CO Monitor Hg Sampler PM Monitor

Unit 1 TEI 48i Environmental Supply Company Hg-324K Automated Mercury Sampler

Unit 2 TEI 48i Environmental Supply Company Hg-324K Automated Mercury Sampler Sick Maihak FWE 200TV Permit Renewal Number 52639 Pa ge 78 of 79 December 06, 2011 SRP – Coronado Generating Station ATTACHMENT “D”: PHASE II ACID RAIN PROVISIONS

Air Quality Control Permit No. 5263 9

for Salt River Project, Coronado Generating Station

I. Statement of Basis

Statutory and Regulatory Authorities: In accordan ce with Arizona Revised Statutes, Title 49, Chapter 3, Article 2, Section 426.N, and Titles IV and V of the Clean Air Act, the Arizona Department of Environmental Quality issues this Phase II Acid Rain Permit pursuant to Arizona Administrative Code, Title 18, Chapter 2, Article 3, Section 333 ( A.A.C. R18-2-333), “Acid

Rain”.

II. SO 2 Allowance † Allocations and NO

x Requirements for Each Affected Unit

2011 2012 2013 2014 2015 2016 2017

Unit 1 SO 2 allowances

under Tables 2, 3, or 4 of 40 CFR part

73 5,332* 5,332* 5,332* 5,332* 5,332* 5,332* 5,332*

NO

x limit Pursuant to 40 CFR 76.8(d)(2), Arizona Department of Environmental Quality approves a NOx early election compliance plan for Unit 1. The compliance plan is effective for calendar year 2000 through calendar year 2007. Under the compliance plan, the unit’s annual average NOx emission rate for each year, determined in accordance with 40 CFR Part 75, shall not exceed the applicable emission limitation, under 40 CFR 76.5(a)(2) of 0.50 lb/MMBtu for wa ll fired boilers. If the unit is in compliance with its applicable emission limitation for each year of the plan, then the unit shall not be subject to the applicable emission limitation, under 40 CFR 76.7(a)(2), of 0.46 lb/MMBtu until calendar year 2008.

In addition to the described NO

x compliance plan, this unit shall comply with all other applicable requirements of 40 CFR Part 76, including the duty to reapply for NO

x compliance plan and requirements covering

excess emissions.TV Permit Renewal Number 52639 Pa ge 79 of 79 December 06, 2011 SRP – Coronado Generating Station 2011 2012 2013 2014 2015 2016 2017

Unit 2 SO 2 allowances

under Tables 2, 3, or 4 of 40 CFR part

73 5,332* 5,332* 5,332* 5,332* 5,332* 5,332* 5,332*

NO

x limit Pursuant to 40 CFR 76.8(d)(2), Arizona Department of Environmental Quality approves a NOx early election compliance plan for Unit 2. The compliance plan is effective for calendar year 2000 through calendar year 2007. Under the compliance plan, the unit’s annual average NOx emission rate for each year, determined in accordance with 40 CFR Part 75, shall not exceed the applicable emission limitation, under 40 CFR 76.5(a)(2) of 0.50 lb/MMBtu for wa ll fired boilers. If the unit is in compliance with its applicable emission limitation for each year of the plan, then the unit shall not be subject to the applicable emission limitation, under 40 CFR 76.7(a)(2), of 0.46 lb/MMBtu until calendar year 2008.

In addition to the described NO

x compliance plan, this unit shall comply with all other applicable requirements of 40 CFR Part 76, including the duty to reapply for NO

x compliance plan and requirements covering

excess emissions.

† As defined under 40 CFR §72.2, “Allowance” means an authorization by the Administrator under the Acid Rain Program to emit up to one ton of sulfur dioxide during or after a specified calendar year.

* The number of allowances actually held by an a ffected source in a unit account may differ from the number allocated by U.S. EPA. Neither of the aforementioned conditions necess itate a revision to the

unit SO 2 allowance allocations identified in this permit (See 40 CFR 72.84).

III. Comments, Notes and Justifications

SRP has early-elected for NO

x requirements on Units 1 and 2.

IV. Permit Application

The Permittee, and any other owners or operators of the units at this facility, shall comply with the requirements contained in the attached aci d rain permit application (OMB No. 2060-0258) signed by the Designated Representative Kara M. Montalvo on 5/18/10.