From: <Susan.Kidd@aps.com>

To: Colleen McKaughan/R9/USEPA/US@EPA, <Edward.Fox@aps.com>

Cc: Thomas Webb/R9/USEPA/US@EPA, Charlotte Withey/R9/USEPA/US@EPA

Date: 10/10/2012 09:17 AM Subject: RE: Two Issues: Notice of Intent to Sue on Four Corners FIP and Subject to BART Comment on

Cholla, Unit 1



### As per item 2, attached are the documents Doug Lavarnway from Cholla gave to ADEQ at the meeting in

August of 2007. I have also attached a fourth document that shows that the unit ’ s first operation took

place on March 8, 1962 and the first coal megawatts were on March 10, 1962. If you need anything else

please feel free to call me.

Sue Kidd

Director

- Environmental
(602) 250

- 4226

From: Colleen M cKaughan [mailto:McKaughan.Colleen@epamail.epa.gov]

Sent: Wednesday, October 03, 2012 4:25 PM

To: Fox, Edward Z; Kidd, Susan C

Cc: Thomas Webb; Charlotte Withey Subject: Two Issues: Notice of Intent to Sue on Four Corners FIP and Subject to BART Comment o n Cholla, Unit 1

Hi, Ed and Sue,

I have two issues that I wanted to share with you.

1) Wild Earth Guardians has notified EPA of their intention to sue EPA for violating Section 7 of the ESA . The letter alleges EPA violated the ESA for failing to c onsult with USFWS "for the ongoing operation of the Four Corners Power Plant". Then the letter says that "[a]lthough this duty has been ongoing, it was also triggered by the recent adoption of [the FIP]". The letter attaches the Draft Biological Opini on distributed by the Albuquerque Office of the USFWS for the Desert Rock project. I wanted to make sure you were aware of this notice of intent to sue, if you weren't already, and a copy of the WEG letter is

attached below.

2) I need your assistance in responding to a comment that we received on Cholla Unit 1. NPCA pointed out in their comments that we did not have any documentation that Cholla Unit 1 is not BART

- eligible (i.e. that it was "in operation" before Aug. 7, 1962).

Here's what ADEQ's SIP say s on that subject:

In August of 2007, representatives of APS ’ s Cholla Generating Station met with representatives of ADEQ to discuss some outstanding questions that the company had regarding ADEQ ’ s analysis. During the course of that meeting, APS provi ded a copy of Arizona Public Service Company Correspondence that was sent to Gus Hansen, Supt. at Cholla S.E.S. entitled “ Operating Notes For May 1962 ” . According to information provided by this document, “ [o]n Tuesday, May 1, 1962, unit [#1] placed into commercial operation. ” As a result, APS argued that Unit #1 was “ in operation ” prior to August 7, 1962, and

therefore was not BART

- eligible. After reviewing this documentation, ADEQ concurs that Unit #1 was

never BART

- eligible.

NPCA requested that we re

- examine this determination and provide the following documentation to support it: § The document entitled Operating Notes for May 1962 referenced in ADEQ ‘ s SIP;§ All available 1962 operating records for Cholla Unit 1;

§ All initial Clean Air Act co nstruction and operating permits issued to Cholla Unit 1; § All emissions data from the year 1962 for Cholla Unit 1; § Notes of the meeting between ADEQ and APS in August 2007 or any other time ADEQ and APS

discussed the BART

- eligibility of Cholla Unit 1 ; and § Any other documentation that either supports or contradicts whether Cholla Unit 1 was placed into commercial operation before August 7, 1962.

I don't think we need all of this documentation, but we do need something to establish that this unit was properly excluded from BART. Can you help us by providing a copy of the May 1962 Operating Notes and any other documentation that you believe proves t hat Unit 1 was in operation in May 1962? We have to address this comment and we figured APS was in the best position to provide this documentation.

Thanks!

Lastly, we got the FCPP NEPA modeling protocol and we are looking at it. I will be in the rest of the week if you want to discuss any of this. Take care,

Colleen W. McKaughan
Associate Director, Air Division USEPA, Region 9 (520) 498

- 0118



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