Permit #53418 1 of 131 August 15, 2012

Tucson Electric Power-SGS AIR QUALITY CLASS I PERMIT

COMPANY: Tucson Electric Power Company FACILITY: Springerville Generating Station

PERMIT #: 53418 DATE ISSUED: September 4, 2012 EXPIRY DATE: September 4, 2017

SUMMARY This Class I, Title V operating permit renewal is issued to Tucson Electric Power Company (TEP), the Permittee, for the continued operation of its Springerville Generating Station (SGS), located in Apache County, approximately 15 miles North of Springerville, Arizona. The area is either unclassified or is classified as being in attainment for all criteria pollutants. This is a renewal of Operating Permit #32008. The Springerville Generating Station is classified as a Class I, Major Source. The potential emission rates of the particulate matter with an aerodynamic diameter less than 10 microns (PM 10 ), sulfur dioxide (SO 2 ), nitrogen oxides (NO x ), carbon monoxides (CO), volatile organic compounds (VOCs), and sulfuric acid mist are greater than 100 tons per year. In addition, SGS has potential emission rates of hazardous air pollutants in excess of 25 tons per year in total, and in excess of the major source threshold of 10 tons per year for one or more of the cyanide compounds, hydrogen chloride, and hydrogen fluoride. SGS is also subject to the Acid Rain Program of the Clean Air Act.

An Approval to Construct for two coal-fired steam electric generating units was issued by the Environmental Protection Agency (EPA) on December 21, 1977, to the facility. These two pulverized coal-fired, steam generating units are rated to produce a combined output of approximately 760 net megawatts. Each unit typically operates 24 hours per day, seven days per week, and 365 days per year. Both units normally burn coal. Units 1 & 2 have a capacity toprocess 5,272,000 tons of coal per year. Units 1 and 2 are also permitted to burn dual fuel (cofiring of fuel oil and coal for Units 1 & 2, and co-firing of used oil and coal for Unit 1). Baghouses are utilized to control particulate matter emissions. Spray dry absorbers are used to control SO 2 . Low NO x burners, overfire air ports, and good operating practices control NO x emissions.

A significant permit revision for the construction of two (2) new pulverized coal-fired steam electric generating units, “Unit 3” and “Unit 4” was issued on April 29, 2002. Unit 3 commenced operation in the year 2006 and Unit 4 commenced operation on December 17, 2009. Unit 3 and Unit 4 are primarily coal-fired. Each of these units is rated to produce approximately 420 net megawatts. Both Unit 3 and Unit 4 typically operate 24 hours per day, seven days per week, andPermit #53418 2 of 131 August 15, 2012

Tucson Electric Power-SGS 365 days per year. Each of the two units utilize baghouses to capture particulate matter emissions; spray dry absorbers to control emissions of sulfur dioxide and other acid gases; and low-NO x burners and selective catalytic reduction (SCR) units to control nitrogen oxides emissions. The major modification was subject to Prevention of Significant Deterioration (PSD) review for, PM, PM 10, CO, VOC, and fluorides. The applicant voluntarily accepted emission caps on facility-wide emissions of SO 2 , NO x , and sulfuric acid mist. Thus, PSD review was not required for these pollutants.

In addition to the pulverized coal-fired steam electric generating units, SGS includes various ancillary facilities such as an oil-fired auxiliary boiler, a coal preparation plant, coal storage piles, lime storage and handling facilities, two mechanical-draft wet cooling towers. As part of the major modification to add Unit 3 and Unit 4, two new mechanical-draft wet cooling towers using high-efficiency drift eliminators, new lime storage and handling facilities using enclosures and fabric filters, and new anhydrous ammonia storage tanks were installed. The coal preparation plant and coal storage was expanded to accommodate the two new Units 3 and 4. During construction of Unit 4 a carbon injection system for mercury removal was also installed.

This permit is issued in accordance with Title V of the Clean Air Act, and Title 49, Chapter 3 of the Arizona Revised Statutes. All definitions, terms, and conditions used in this permit conform to those in the Arizona Administrative Code R18-2-101 et. seq. (A.A.C) and 40 Code of Federal Regulations (CFR), except as otherwise defined in this permit. Unless noted otherwise, references cited in the permit conditions refer to the A.A.C. All material permit conditions have been identified within the permit by a double underline. All terms and conditions of this permit are enforceable by the Administrator of the United States Environmental Protection Agency (U.S. EPA) except for those terms and conditions that are specifically designated as “State Requirements.”Permit #53418 3 of 131 August 15, 2012

Tucson Electric Power-SGS TABLE OF CONTENTS

ATTACHMENT “A”

............................................................................................................................... ... 5

I. PERMIT EXPIRATION AND RENEWAL ...................................................................................5 II. COMPLIANCE WITH PERMIT CONDITIONS............................................................................5 III. PERMIT REVISION, REOPENING, REVOCATION ANDREISSUANCE, OR TERMINATION FOR CAUSE ......................................................................................................5 IV. POSTING OF PERMIT .......................................................................................................... .........6 V. FEE PAYMENT................................................................................................................. ..............6 VI. ANNUAL EMISSION INVENTORY QUESTIONNAIRE............................................................6 VII. COMPLIANCE CERTIFICATION.................................................................................................7 VIII. CERTIFICATION OF TRUTH, ACCURACY AND COMPLETENESS......................................7 IX. INSPECTION AND ENTRY....................................................................................................... ....8 X. PERMIT REVISION PURSUANT TO FEDERAL HAZARDOUS AIR POLLUTANT STANDARD ..........................................................................................................8 XI. ACCIDENTAL RELEASE PROGRAM .........................................................................................8 XII. EXCESS EMISSIONS, PERMIT DEVIATIONS, AND EMERGENCY REPORTING...................................................................................................................... ..............8 XIII. RECORD KEEPING REQUIREMENTS......................................................................................14 XIV. REPORTING REQUIREMENTS..................................................................................................14 XV. DUTY TO PROVIDE INFORMATION .......................................................................................14 XVI. PERMIT AMENDMENT OR REVISION ....................................................................................15 XVII. FACILITY CHANGE WITHOUT A PERMIT REVISION .........................................................15 XVIII. TESTING REQUIREMENTS .................................................................................................... ...16 XIX. PROPERTY RIGHTS ........................................................................................................... .........18 XX. SEVERABILITY CLAUSE........................................................................................................ ...18 XXI. PERMIT SHIELD ............................................................................................................. .............18 XXII. PROTECTION OF STRATOSPHERIC OZONE..........................................................................18

ATTACHMENT “B” ................................................................................................................. ...............19

I. FACILITY WIDE SPECIFIC REQUIREMENTS ........................................................................19 II. UNIT 1 AND UNIT 2 (P1 and P2) .............................................................................................. ..23 III. UNIT 3 AND UNIT 4 (P3 and P4) ............................................................................................. ...42 IV. Unit 1, Unit 2, Unit 3 and Unit 4 (P1, P2, P3, and P4)(Combined Limits)....................................75 V. AUXILIARY BOILER (P5) ....................................................................................................... ...83 VI. INTERNAL COMBUSTION ENGINES ......................................................................................85 VII. COOLING TOWERS............................................................................................................ .........93 VIII. COAL PREPARATION PLANT................................................................................................... 97 IX. LIME HANDLING – UNITS 1 AND 2.......................................................................................100 X. LIME HANDLING - UNITS 3 AND 4 .......................................................................................102 XI. FLY ASH HANDLING - UNITS 1 AND 2.................................................................................105 XII. FLY ASH HANDLING - UNITS 3 AND 4.................................................................................108 XIII. ACTIVATED CARBON SILO.................................................................................................... 111 XIV. EVAPORATIVE WATER SPRAY SYSTEMS (EWS)..............................................................113 XV. FUGITIVE DUST SOURCES .....................................................................................................1 14 XVI. ABRASIVE BLASTING ......................................................................................................... ....116 XVII. USE OF PAINTS ........................................................................................................... .............117Permit #53418 4 of 131 August 15, 2012

Tucson Electric Power-SGS XVIII. SOLVENT CLEANING / DEGREASING, DIPPING OPERATIONS ......................................118 XIX. MOBILE SOURCES............................................................................................................ ........119 XX. DEMOLITION/RENOVATION..................................................................................................120

ATTACHMENT “C”: EQUIPMENT LIST ........................................................................................121

ATTACHMENT “D”: PHASE II ACID RAIN PROVISIONS

.......................................................... 130Permit #53418 5 of 131 August 15, 2012

Tucson Electric Power-SGS ATTACHMENT “A”: GENERAL PROVISIONS Air Quality Control Permit No. 53418 for Tucson Electric Power Company– Springerville Generating Station

I. PERMIT EXPIRATION AND RENEWAL [ARS § 49-426.F, A.A.C. R18-2-304.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 renewal 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 conditions 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, revocation 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 -.A.2]

A. The permit may be revised, reopened, 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 under any of the following circumstances:

1. Additional applicable requirements under the 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. The reopening shall be completed no later than 18 months after promulgation of the applicable requirement. No such reopening is required if the effective date of the requirement is later than the date on which the permit is due to expire, unless 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.Permit #53418 6 of 131 August 15, 2012

Tucson Electric Power-SGS 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 be incorporated into the Class I permit.

3. The Director or the Administrator determines that the permit contains a material mistake or that inaccurate state ments were made in establishing the emissions standards or other terms or conditions of the permit.

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

C. Proceedings to reopen and reissue a permit, including appeal of any final action relating to a permit reopening, shall follow the same procedures as apply to initial permit issuance and shall, except for reopenings under Condition 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 other 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 permit 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 pursuant 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 the 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.Permit #53418 7 of 131 August 15, 2012

Tucson Electric Power-SGS 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 certification 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 second certification shall be submitted no later than November 15 th , and shall report the compliance status of the source during the 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 other 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 terms and conditions of the permit for the period covered by the certification, including whether compliance during the period was continuous or intermittent. The certification shall be based on the methods and means designated in Condition VII.A.2 above. The certifications shall identify each deviation and take 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 permit 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 certifications 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 this permit, including reports, shall contain a certification by a responsible official of truth, accuracy, and completeness. ThisPermit #53418 8 of 131 August 15, 2012

Tucson Electric Power-SGS certification shall state that, based on information and belief formed 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 Permittee shall allow the Director or the authorized representative of the Director to:

A. Enter upon the Permittee’s premises where a source 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 air pollution control equipment), practices, or operations regulated or required under the permit;

D. Sample or monitor, at reasonable times, substances 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 application 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 the time line specified in 40 CFR Part 68.

XII. EXCESS EMISSIONS, PERM IT 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. Such report shall be in two parts as specified below:

(1) Notification by telephone or facsimile within 24 hours ofPermit #53418 9 of 131 August 15, 2012

Tucson Electric Power-SGS 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:

(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 limitation and the operating data and calculations used in determining the magnitude of the excess emissions;

(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 we re the result of a malfunction, steps taken to remedy the malfunction and 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 the 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. [A.A.C. R18-2-310.01.C]

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 preventivePermit #53418 10 of 131 August 15, 2012

Tucson Electric Power-SGS measures taken. Prompt reporting shall mean that the report was submitted to the 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 situation arising from sudden and reasonably unforeseeable events beyond the control of the source, including acts of God, that require immediate corrective action to restorenormal operation, and that causes the source to exceed a technologybased 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 preventative maintenance, careless or improper operation, or operator error.

2. An emergency constitutes an affirmative defense to an action brought for noncompliance with such technology-based emission limitations if Condition XII.C.3 is met.

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 the 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 emissions 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 delivery 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 Permittee 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.Permit #53418 11 of 131 August 15, 2012

Tucson Electric Power-SGS D. Compliance Schedule [ARS § 49-426.I.5]

For any excess emission or permit deviation that cannot be corrected within 72 hours, the Permittee is required to submit a compliance schedule to the Director within 21 days of such occurrence. The compliance schedule 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 Emissions Due to Malfunctions, Startup, and Shutdown [A.A.C. R18-2-310]

1. Applicability

This rule establishes affirmative defenses for certain emissions in excess of an emission standard or limitation and applies 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 Significant 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 requirements of A.A.C. R18-2- 406.A.5.

2. Affirmative Defense for Malfunctions

Emissions in excess of an app licable emission limitation due to malfunction shall constitute a violation. When emissions in excess of an applicable emission limitation are due to a malfunction, 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:

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 equipment, process equipment, or processes were at all times main tained and operated in a manner consistent with good practice for minimizing emissions;

c. If repairs were required, the repairs were made in an expeditiousPermit #53418 12 of 131 August 15, 2012

Tucson Electric Power-SGS fashion when the applicable emission limitations were being exceeded. Off-shift labor and overtime were utilized where 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 from 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 respons e to the excess emissions were documented by contemporaneous records.

3. Affirmative Defense for Startup and Shutdown

a. Except as provided in Condition XII.E.3.b below, and unless otherwise provided for in the applicable requirement, emissions in excess of an applicable emission limitation due to startup and shutdown shall constitute a violation. When emissions 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;Permit #53418 13 of 131 August 15, 2012

Tucson Electric Power-SGS (2) If the excess emissions were the result of a bypass of control equipment, the bypass was unavoidable 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 were 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 Malfunctions during Scheduled Maintenance

If excess emissions occur due to a malfunction during scheduled maintenance, then those instances will be treated as other malfunctions subject to Condition XII.E.2 above.

5. Demonstration of Reasonable and Practicable Measures

For an affirmative defense under Condition XII.E.2 or XII.E.3 above, the Permittee shall demonstrate, through submission 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.Permit #53418 14 of 131 August 15, 2012

Tucson Electric Power-SGS XIII. RECORD KEEPING REQUIREMENTS [A.A.C. R18-2-306.A.4]

A. The Permittee shall keep records of all required 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 entity 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 required 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 information 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, within a reasonable time, any information that the Director may request in writing to determine whether cause exists for revising, revoking and reissuing, or terminating the permit, 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 information claimed to be confidential, the Permittee shall furnish an additional copy of such records directly to the Administrator along with a claim of confidentiality.Permit #53418 15 of 131 August 15, 2012

Tucson Electric Power-SGS 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 submit 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 do 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 action 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 pollution 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.

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 thePermit #53418 16 of 131 August 15, 2012

Tucson Electric Power-SGS 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 advance 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 implementation of an alternate to Conditions XVII.A and XVII.B above.

F. Except as otherwise provided for in the permit, 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 full load of each unit under representative operational conditions unless 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) shall not constitute representative operational conditions 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 Testing Manual unless modified by the Director pursuant to A.A.C. R18-2-312.B.Permit #53418 17 of 131 August 15, 2012

Tucson Electric Power-SGS 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. R18-2-312.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 Results

Each performance test shall consist of three separate runs using the applicable test method. Each run shall be conducted for the 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 the 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 shutdown, failure of an irreplaceable portion of the sample train, extreme meteorological conditions, 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 stopped 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 Permittee’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 demonstrates good cause, must be submitted.Permit #53418 18 of 131 August 15, 2012

Tucson Electric Power-SGS G. Report of Final Test Results

A written report of the results of all performance tests shall be submitted to the Director within 30 days after the test is performed. The report shall be submitted in accordance 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 the event of a challenge to any portion of this permit, or if any portion of this permit is held 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 shall be deemed compliance with all applicable requirements identified in the portions of this permit 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 pursuant 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.Permit #53418 19 of 131 August 15, 2012

Tucson Electric Power-SGS ATTACHMENT “B”: SPECIFIC REQUIREMENTS Air Quality Control Permit No. 53418 for Tucson Electric Power Company– Springerville Generating Station

I. FACILITY WIDE GENERAL REQUIREMENTS

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. 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]

C. The permit conditions or portions of the permit conditions which are material pursuant to A.A.C. R18-2-331 and A.R.S. §49-464 are indicated by italics and a single underline.

D. Definitions

The terms used in this permit shall have the following meaning:

1. “Boiler operating day” [40 CFR 60.41Da]

a. For units constructed, reconstructed, or modified on or before February 28, 2005, means a 24-hour period during which fossil fuel is combusted in a steam generating unit for the entire 24 hours.

b. For units constructed, reconstructed, or modified after February 28, 2005, means a 24-hour period between 12 midnight and the following midnight during which any fuel is combusted at any time in the steam-generating unit. It is not necessary for fuel to be combusted the entire 24-hour period.

2. “Calendar Day” means any 24-hour period between 12:00 midnight and the following midnight in Arizona. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D Ariz.), §3(b)]
3. “Cooling Tower 1” and “Cooling Tower 2” are the existing mechanicaldraft wet cooling towers at the Springerville Generating Station (SGS). [Condition No. I.B.2. of Attachment “B” of Significant Permit Revision No. 1001554 to Permit No. 1000105 ] 4. “Cooling Tower 3” and “Cooling To wer 4” are the new mechanical-draft wet cooling towers at the SGS associated with Unit 3 & Unit 4. [Condition No.I.B.3. of Attachment “B” of Significant Pe rmit Revision No. 1001554 to Permit No. 1000105]

5. “Gross Output” means the gross useful work performed by the steam generated. The gross useful work performed is equal to the gross electrical output from the turbine/generator set. [40 CFR 60.41Da]Permit #53418 20 of 131 August 15, 2012

Tucson Electric Power-SGS 6. “Heat Input” means the aggregate gross calorific value of all fuels whose products of combustion pass through a stack or other outlet. The gross calorific value of solid and liquid fuels shall be determined in accordance with appropriate test methods that are incorporated by reference at 40 CFR 60.17 or A.A.C. R18-2-724. [A.A.C. R18-2-724 and 40 CFR Part 60, Appendix A, Method 19]

7. “Major Burner Malfunction” is, for the purposes of complying with the NO x emission limitation in Condition II.E.1.c, a malfunction (as defined in Condition I.D.8) that is unanticipated and that requires extensive repairs to the low NO x burners and the Secondary Overfire Air dampers that are internal to the boiler at Unit 1 or 2. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 3(f)]

8. Malfunction means any sudden, infrequent, and not reasonably preventable failure of air pollution control equipment, process equipment, or a process to operate in a normal or usual manner. Failures that are caused in part by poor maintenance or careless operation are not malfunctions. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 3(e)]

9. “NO x ” means total oxides of nitrogen, except nitrous oxide, which are expressed as nitrogen dioxide (NO 2 ) using EPA Reference Method 7. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 3(g)]

10. “Potential combustion concentration” means the theoretical emissions that would result from combustion of a fuel without emission control systems. [40 CFR 60.41Da and A.A.C. R18-2-406.A.4]

11. “PM” or “Particulate Matter” mean any airborne, finely divided solid or liquid material, other than uncombined water, with an aerodynamic diameter smaller than 100 micrometers, and which is expressed as PM using EPA Reference. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 3(j)]

12. “Shutdown” means the cessation of operation of a steam generating unit for any purpose. [40 CFR 60.2]

13. “SO 2 ” means sulfur dioxide. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 3(l)]
14. “Startup” means the setting in operation of a steam generating unit for
any purpose. [40 CFR 60.2]

15. “Steam generating unit” shall mean Unit 1, Unit 2, Unit 3, or Unit 4. For the purposes of Unit 1 and Unit 2, this term shall have the same meaning as “fossil-fuel fired steam generating unit” as defined at 40 CFR 60.41(a). For the purposes of Unit 3 and Unit 4, this term shall have the same meaning as “electric utility steam generating unit” as defined in 40 CFR 60.41Da. [Condition No.I.B.12 of Attachment “B” of Significant Permit Revision No. 1001554 to Permit No. 1000105]Permit #53418 21 of 131 August 15, 2012

Tucson Electric Power-SGS 16. Unit means Unit 1, Unit 2, Unit 3, or Unit 4.

17. “Unit 1” and “Unit 2”

Unit 1 and Unit 2 are the existing steam generating units at the SGS. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 3(o)] [Condition No.I.B.13 of Attachment “B” of Significant Permit Revision No. 1001554 to Permit No. 1000105]

18. “Unit 3” and “Unit 4”

Unit 3 and Unit 4 are steam generating units at the SGS. Each of these units is an “affected facility” under 40 CFR Part 60, Subpart Da, “Standards of Performance for Electric Utility Steam Generating Units for which Construction Commenced after September 18, 1978.” [Condition No.I.B.14 of Attachment “B” of Significant Permit Revision No. 1001554 to Permit No. 1000105]
19. For purposes of the sulfur dioxide standard in Condition II.D.1.d and the nitrogen oxide standard in Condition II.E.1.c, the following terms shall be defined as follows:

a. “Emission Rate ” means the total amount of a pollutant emitted from an emission unit during a given time period, expressed in lbs/MMBtu, derived for SO 2 and NO x from a SO 2 or NO x continuous emission monitoring system and diluent (O 2 or CO 2 ) monitoring system consistent with 40 CFR Part 75.

b. “Hourly Average ” means the calculated arithmetic average hourly emission rate, expressed in lbs/MMBtu, derived from an SO 2 and/or NO x continuous emission monitoring system and diluent (CO 2 or O 2 ) monitoring system consistent with 40 CFR 75, collected during an hour, beginning on the hour.

c. “Daily Average ” means the arithmetic average of the Hourly Averages for a Unit in a Day.

d. “Combined Daily Average ” means the arithmetic average of the Daily Averages of Unit 1 and Unit 2 on a given day. For days when only one Unit has any operating hours, the Combined Daily Average shall be the Daily Average for that Unit.

e. “Monthly Average ” means the arithmetic average of the Combined Daily Average Emission Rates for Units 1 and 2 for a calendar month.

[Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 17(d)]
20. For purposes of the sulfur dioxide control efficiency in Condition II.D.1.e, the following terms shall be defined as follows:

a. “Hourly Average Stack Outlet Sulfur Dioxide Concentration ” means the calculated arithmetic average hourly emission rate,Permit #53418 22 of 131 August 15, 2012

Tucson Electric Power-SGS expressed in lbs/MMBtu, derived from an SO 2 and/or NO x continuous emission monitoring system and diluent (CO 2 or O 2 ) monitoring system consistent with 40 CFR 75, collected during an hour, beginning on the hour, using the SGS existing SO 2 Continuous Emission Monitoring System.

b. “Hourly Average Boiler Inlet Sulfur Dioxide Concentrations ” means the calculated hourly inlet sulfur dioxide concentration, expressed in lbs/MMBtu, derived from all valid measurements or data points collected from the monitoring system (referred to in Condition II.B.1.d.(3)) during an hour, beginning on the hour; provided however, that:

(1) in the event the monitoring system is not in operation due to maintenance and/or malfunction, the Permittee shall substitute for each hour the average sulfur dioxide concentration from the previous 30 days of data from such monitoring system; and

(2) if the monitoring system has not yet been in service for 30 days, the Permittee shall use the previous 30 days of coal analysis as received from the coal vendor. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 18(f)]

E. For the purposes of this permit, unless otherwise specified in the applicable standards, for any facilities subject to the new source performance standards (NSPS) from 40 CFR Part 60, compliance with such standards other than opacity standards shall be determined in accordance with performance tests. The performance tests shall be conducted and data reduced in accordance with the test methods and procedures contained in the specific requirements for each emission unit or group of emission units. [40 CFR 60.8(b) and 60.11(a)]

F. For the purposes of this permit, for any facilities subject to the NSPS from 40 CFR Part 60, compliance with the new source opacity standards shall be determined by conducting observations in accordance with EPA Reference Method 9, or any alternative method that is approved by the Director, unless the Permittee elects to submit continuous opacity monitoring system data for compliance with the opacity standards. [40 CFR 60.11(b)]

G. For the purposes of submitting compliance certifications or establishing whether or not Permittee has violated or is in violation of any NSPS from 40 CFR Part 60 subsumed under Attachment “B”, nothing in Attachment “B” shall preclude the use, including the exclusive use, of any credible evidence or information, relevant to whether a source would have been in compliance with such standards if the appropriate performance or compliance test or procedure had been performed. [40 CFR 60.11(g)]

H. For the purposes of this permit, the EPA Reference Method 9 reading shall be defined as an average of 24 consecutive opacity observations recorded at 15- second intervals. A set is composed of any 24 consecutive observations. SetsPermit #53418 23 of 131 August 15, 2012

Tucson Electric Power-SGS need not be consecutive in time and in no case shall two sets overlap. For each set of 24 observations, calculate the average by summing the opacity of the 24 observations and dividing this sum by 24. [A.A.C. R18-2-306.A.3.b and 40 CFR Part 60, Appendix A, Method 9]
II. UNIT 1 AND UNIT 2 (P1 and P2)

A. Applicability

This Section applies to Unit 1 and Unit 2 as described in Condition I.D.17 and Equipment List, Attachment “C”.

B. Operating Limitations

1. Fuel Limitations

a. Unit 1 [A.A.C. R18-2-306.A.2 and A.R.S. 49.426.G.1]

(1) The Permittee shall burn only the following as fuel in Unit 1:

(a) Coal;

(b) Co-firing of coal and fuel oil including biodiesel;

(c) Co-firing of coal and used oil subject to the limits specified in Conditions II.B.1.a.(2) and (3); and

(d) Fuel oil during times of startup and shut down.

(2) The maximum amount of used oil consumed in Unit 1 shall not exceed 2,500 gallons per hour, based on a calendar-day block average, or 100,000 gallons per year, based on a 12-month rolling total.



### (3) The Permittee shall only burn on-specification used oilor on-site generated on-specification used oil fuel (onspec used oil) along with coal in the Unit 1, if the following conditions are met:

(a) The flash point of the on-spec used oil does not fall below 100 o Fahrenheit.

(b) The Permittee shall comply with all applicable requirements of A.R.S. §49-801 through §49- 803- Management of Used Oil.Permit #53418 24 of 131 August 15, 2012

Tucson Electric Power-SGS (c) The on-spec used oil shall not contain contaminants in excess of the levels indicated in Table 1:

Table 1: Contaminant Levels

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

The Permittee shall burn only the following as fuel in Unit 2:

(1) Coal;

(2) Co-firing of coal and fuel oil including bio-diesel; and

(3) Fuel oil during times of startup and shut down.

c. Monitoring/Recordkeeping/Reporting Requirements

(1) The Permittee shall keep a record of any change in fuel type at Unit 1 and Unit 2 including:

(a) Type of the fuel change;

(b) Date of the fuel change; and

(c) Time of the fuel change. [A.A.C. R18-2-306.A.3.c]
(2) Used Oil [A.R.S § 49-426.G.4]

(a) All analyses of used oil performed pursuant to Condition II.B.1.d(1) shall be documented and a report submitted to the Department along with the compliance certification.

(b) The Permittee shall maintain such records as required to document the use of used oil including the following:

(i) Dates on which used oil was burned; Name of Pollutant Limit

Arsenic 5 ppm Cadmium 2 ppm Chromium 10 ppm Lead 100 ppm Halogens 1000 ppm

PCBs 2 ppmPermit #53418 25 of 131 August 15, 2012

Tucson Electric Power-SGS (ii) Hours used oil was burned; and

(iii) The quantity of used oil burned.

d. Testing Requirements

(1) Used Oil

The Permittee shall perform or cause to be performed an analysis of a representative sample of any used oil to be combusted in Unit 1. The analysis shall include flash point and concentrations (ppm) of Arsenic, Cadmium, Chromium, and Lead using the analytical methods specified in EPA Publication SW-846, Third Edition, including update III B (document number 955-001- 00000-1). All sample analyses shall be conducted in laboratories certified by the Arizona Department of Health Services. [A.R.S.§ 49-426.G.2]

(2) Coal Sampling

Coal shall be sampled before entering the boilers. The sample shall be analyzed for moisture, ash, sulfur content, and gross calorific value. Analysis of coal samples provided by the coal supplier may be utilized for this purpose. The results of these analyses shall be retained for at least five years following the date of measurements. All sampling, sample preparation, and analyses performed or caused to be performed shall be performed as per the current ASTM standard methods.

[Condition XI of EPA Approval to Construct of December 2, 1977]

(3) Monitoring Systems

The Permittee shall operate either an in-line elemental coal analyzer upstream of both the Unit 1 and Unit 2boilers, which will be available to both Units, or an “asfired” fuel monitoring system (upstream of the coal pulverizer) meeting the requirements of EPA Reference Method 19 in 40 CFR 60 to determine the potential sulfur dioxide inlet concentration. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 7]
2. Vapor Extractor Blower Vents, Generator Seal Oil Vapor Extractor and Hydraulic Fluid Reservoir Vapor Extractors [A.A.C. R18-2-730.F]

The Permittee shall process, store, use, and transport materials including solvents or volatile compounds in such a manner and by such means that they will not evaporate, leak, escape, or be otherwise discharged into the atmosphere so as to cause or contribute to air pollution. Where meansPermit #53418 26 of 131 August 15, 2012

Tucson Electric Power-SGS are available to reduce effectively the contribution to air pollution from evaporation, leakage, or discharge, the installation and usage of such control methods, devices, or equipment shall be mandatory.

3. Good Air Pollution Control Practices.

The Permittee shall at all times, including periods of startup, shutdown, and malfunction (as defined in Condition #s I.D.8, 12, and 14), maintain and operate Unit 1 and Unit 2 in a manner consistent with good air pollution control practices for minimizing emissions. Without limiting the Permittee’s obligations in the event of a malfunction, from and after the effective date of this Permit, the Permittee shall address each malfunction affecting Unit 1 or Unit 2 and take corrective action, when possible, within 24 hours of when the Permittee first learns of the malfunction. Malfunctions that cannot be corrected within a 24 hour period shall be reported to the ADEQ within two (2) business days and a plan for bringing the affected Unit(s) into compliance shall be submitted to the ADEQ within seven (7) business days, unless the malfunction can be corrected within seven (7) business days. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 15]

4. Permit Shield [A.A.C.R18-2-325]
Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R18-2-730.F, Condition XI of EPA Approval to Construct of December 2,1977 and Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 15.

C. Particulate Matter (PM/PM 10 ) and Opacity

1. Emission Limitations/Standards

a. Opacity

The Permittee shall not cause to be discharged into the atmosphere from the stacks of Unit 1 or Unit 2 any gases which exhibit greater than 15 percent opacity except for periods of startup, shutdown, and malfunction as defined in Condition #s I.D.8, 12, and 14. [40 CFR 60.11(c) and A.A.C. R18-2-331.A.3.f] [Condition XIII of Approval to Construct of December 21, 1977] [Material Permit Conditions are def ined by underline and italics]

b. Particulate Matter

(1) The Permittee shall not cause to be discharged into the atmosphere from the stacks of Unit 1 and Unit 2 any gases which contain PM/PM 10 in excess of 0.034 lb per million Btu derived from fossil fuel except for periods of startup, shutdown, and malfunction as defined in Condition #s I.D.8, 12, and 14. [Condition XIII of Approval to Construct of December 21, 1977 and 40 CFR 60.8 (c)]Permit #53418 27 of 131 August 15, 2012

Tucson Electric Power-SGS (2) Unless otherwise specified, the PM/PM 10 emission limit defined above shall be measured by manual testing on a one-hour average (the average of three one-hour tests). [A.A.C. R18-2-312] (3) The Permittee shall not cause to be discharged to the atmosphere from the stacks of Unit 1 and Unit 2 any gases which contain 

### PM/PM 10 in excess of 0.03 lb/MMBtu derived from fossil fuel, except for periods of startup, shutdown, or malfunction as defined in Condition #s I.D.8, 12, and 14. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 11]
2. Air Pollution Control Requirements [40 CFR 60.11(d) and A.A.C. R18-2-331.A.3.e] [Material Permit Conditions are def ined by underline and italics]

At all times when the equipment is in operation, including periods of startup, shutdown, and malfunction as defined in Condition #s I.D.8, 12, and 14, the Permittee shall, to the extent practicable, maintain and operate four (4) Joy baghouses in a manner consistent with good air pollution control practice for minimizing PM/PM 10 emissions.

3. Monitoring, Recordkeeping, and Reporting Requirements

a. Opacity

(1) Monitoring for Opacity

(a) The Permittee shall calibrate

, maintain, and operate continuous monitoring systems, and shall record the output of the systems, for measuring the opacity of emissions discharged to the atmosphere from Unit 1 and Unit 2.

[40 CFR 60.45(a), A.A.C. R18-2-306.A.3, and -331.A.3.c] [Material Permit Conditions are def ined by underline and italics]

(b) The Permittee shall comply with all recordkeeping and reporting requirements of 40 CFR Part 75, Subparts F and G respectively. (c) The continuous opacity monitoring systems (COMS) shall meet the following data reduction requirements: [40 CFR 60.13(h)]

(i) The Permittee shall reduce all data fromthe COMS to 6-minute averages. Sixminute opacity averages shall be calculated from 36 or more data points equally spaced over each 6-minute period.Permit #53418 28 of 131 August 15, 2012

Tucson Electric Power-SGS (ii) 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. (2) NSPS Requirements for Continuous Monitoring Systems The continuous opacity monitoring system for opacity as required by Condition II.C.3.a.(1)(a) shall meet the following requirements: (a) Calibration requirements at 40 CFR 60.13(d) (b) Operational requirements at 40 CFR 60.13(e) (c) Performance Specifications at 40 CFR Part 60, Appendix B. (d) Notification and recordkeeping requirements at 40 CFR 60.7. b. Compliance Assurance Monitoring for Particulate Matter

(1) The Permittee shall maintain and continuously operate Continuous Opacity Monitoring Systems (COMS) to measure visible emissions (Opacity) which is indicative of operation of the Unit 1 and Unit 2 fabric filters in a manner necessary to comply with 

### PM/PM 10 emission standards. The fabric filter parameters are identified in Table 2. [40 CFR 64.6(c)(1) and A.A.C. R18-2-306.A.3.c] Table 2: Summary of CAM Requirements applicable to Unit 1 and Unit 2 (PM Limits)

Indicators Indicator No. 1: Visible Emissions Opacity Indicator No. 2: Bag condition.

Measurement Approach Visible Emissions (Opacity) will be measured continuously with a continuous Opacity Monitoring System (COMS) installed on each stack. Sampling and analysis of representative bag samples will be done once per year. The analyses of representative bag samples will be used as a factor in determining when bag replacement is to be scheduled. The Baghouse will have an inspection and maintenance program that includes an internal inspection of the baghouse to be performed during a scheduled major outage. Any known broken bags will be either replaced or capped off until ready to be replaced. Compartments with one or more broken bags, that have not been capped off or replaced, will be isolated.Permit #53418 29 of 131 August 15, 2012

Tucson Electric Power-SGS Indicators Indicator No. 1: Visible Emissions Opacity Indicator No. 2: Bag condition.

Visible Emissions greater than 12 percent Opacity based on a 3-hour rolling average (except during unit startup, shutdown, and malfunction as defined in Condition #s. I.D.8, 12, and 14 above). An excursion is defined as failure to sample and analyze bag condition at least once per year. Excursions trigger an inspection, corrective action, and a reporting requirement. Indicator Range

An excursion from the indicator ranges does not necessarily indicate an exceedance, deviation, or violation, but is indicative of the need for investigation and possible corrective action to minimize the potential for an exceedance, deviation, or violation.

Performance Criteria - Data Representativeness Visible emissions (Opacity is measured on stack) Scheduled internal baghouse inspection includes a visual inspection of the entire baghouse including individual bag compartments for signs of bag failure.

Performance Criteria - Operation Status n/a n/a

Performance Criteria - QA/QC Practices TEP is required by the permit to meet the QA/QC requirements of 40 CFR Part 60, Appendix B, Performance Specification 1, “Specification and Test Procedures for Opacity Continuous Emission Monitoring Systems in Stationary Sources” Experienced personnel perform inspections and maintenance.

Performance Criteria - Monitoring Frequency Continuous opacity monitoring with data recorded as 6-minute averages. Varies.

Performance Criteria - Data Collection Procedure Continuous Results of inspections and maintenance activities performed are recorded. Results of annual bag analysis are kept on-file.

Performance Criteria - Averaging Period 3-hour rolling average of visible emissions (Opacity) n/a

(2) A three-hour rolling average opacity, except during startup, shutdown, and malfunction (as defined in Condition #s I.D.8, 12, and 14 above) of 12 percent or greater shall constitute an excursion. [40 CFR 64.3(a)(2) and A.A.C. R18-2-306.A.3.b]
(3) The three-hour rolling average opacity parameter shall be equipped with an alarm. [40 CFR 64.6(c)(1) and A.A.C. R18-2-306.A.3.b]

(4) Each three-hour rolling average opacity of 12 percent or greater, except during startup, shutdown and malfunction (defined in Condition #s I.D.8, 12, and 14 above), during which a fabric filter parameter alarm is activated shall constitute an excursion for the purposes of responding to and reporting excursions under 40 CFR 64.7. [40 CFR 64.6(c)(2) and A.A.C. R18-2-306.A.3.b]Permit #53418 30 of 131 August 15, 2012

Tucson Electric Power-SGS (5) Prior to making any changes to the alarm set point or alarm delay time, the Permittee shall submit written notification to the Department. Such notification shall include the proposed new alarm set point or alarm delay time and the reason for the proposed change. The proposed change may be made without the prior approval of the Department. [40 CFR 64.6(c)(2) and A.A.C. R18-2-306.A.3.b] (6) The Permittee shall conduct monitoring in accordance with the following provisions: [40 CFR 64.7(c) and A.A.C. R18-2-306.A.3.b]

(a) Conduct all monitoring in continuous operation (or shall collect data at all required intervals) at all times that the pollutant specific emission unit (PSEU) is operating. 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).

(b) 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. (7) The Permittee shall, to the extent practicable, respond to excursions as follows: [40 CFR 64.7(d) and A.A.C. R18-2-306.A.3.b] (a) The Permittee upon detecting an excursion or exceedance, shall restore operation of the PSEU (including the control device and associated capture system) to its normal or usual manner of operation as expeditiously as practicable in accordance with good air pollution control practices for minimizing emissions.

(b) The Permittee shall, to the extent practicable, minimize the period of any startup, shutdown, or malfunction (as defined in Condition #s I.D.8, 12, and 14 above) and take 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 excused startup, shutdown, malfunction).Permit #53418 31 of 131 August 15, 2012

Tucson Electric Power-SGS (8) For the purposes of permit deviation reporting under Condition XII of Attachment “A”, the Permittee shall include the following information required by 40 CFR Part 64, § 64.9(a): [40 CFR 64.7(d) and A.A.C. R18-2-306.A.3.b]

(a) Summary information on the number, duration and cause (including unknown cause, if applicable) of excursions or exceedances, as applicable, and the corrective action taken: (b) 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).

c. Excess Emissions (1) Excess emission and monitoring system performance (MSP) reports for Unit 1 and Unit 2 shall be submitted to the Department and EPA Region IX for every calendar quarter. All quarterly reports shall be postmarked by the 30 th day following the end of each calendar quarter. Each excess emission and MSP report shall include the information required in Condition II.C.3.c.(2) below. Periods of excess emissions and monitoring systems (MS) downtime that shall be reported are defined as follows: [40 CFR 60.45(g)] Opacity

Excess emissions for Unit 1 and Unit 2 are defined as any six-minute period during which the average opacity of emissions exceeds 15 percent opacity except for periods of startup, shutdown, or malfunction as defined in Condition #s I.D.8, 12, and 14. [40 CFR 60.45(g)(1)] [Condition No. II.C.4.a (1) of Attachment “B” of Significant Revision No. 1001554 to Title V Permit No. 1000105] (2) The summary quarterly report form submission required in Condition II.C.3.c (1) shall be in the format specified in 40 CFR 60.7(d). The excess emissions report shall include the following information: [40 CFR 60.7(c)] (a) The magnitude of excess emissions computed, 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.

(b) Specific identification of each period of excess emissions that occurs during startups, shutdowns, and malfunctions (as defined in Condition #s I.D.8, 12, and 14) of the affectedPermit #53418 32 of 131 August 15, 2012

Tucson Electric Power-SGS facility, the nature and cause of any malfunction (if known), and the corrective action taken or preventative measures adopted. (c) The date and time identifying each period during which the COMS was inoperative except for zero and span checks and the nature of the system repairs or adjustments. (d) When no excess emissions have occurred, or the COMS(s) have not been inoperative, repaired, or adjusted, such information shall be stated in the report. (3) In addition to reports under Conditions II.C.3.c (1) and (2), the Permittee shall report emissions exceeding an emission limitation or standard in accordance with Section XII.B of Attachment “A” of this permit.

4. Testing Requirements

a. Emission Rate Calculation

(1) The emission rate (E) of particulate matter shall be calculated for each test run using the following equation: [40 CFR 60.46 (b)(1)]

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.

(2) As an alternative to Condition II.C.4.a (1), the Permittee may follow the methodology specified in 40 CFR § 60.46(d)(1) to determine the emission rate (E) of particulate matter. [40 CFR 60.46 (d)(1)]
b. Particulate Matter [A.A.C.R18-2-306.A.3.c and - 312] The Permittee shall perform an annual performance test to determine the particulate matter concentration using EPA Reference Method 5.

5. Permit Shield [A.A.C.R18-2-325] Compliance with the Conditions of this Section shall be deemed compliance with Condition XIII of Approval to Construct of December 21, 1977, 40 CFR 60.45 (a), (g). (g)(1), 60.46 (b)(1), and (d)(1).Permit #53418 33 of 131 August 15, 2012

Tucson Electric Power-SGS D. Sulfur Dioxide (SO 2 )

1. Emission Limitations/Standard.

a. The Permittee shall not cause to be discharged into the atmosphere from the stacks of Unit 1 and Unit 2 any gases which contain SO 2 in excess of 0.690 pounds per million Btu derived from fossil fuel except for periods of startup, shutdown, and malfunction as defined in Condition #s I.D.8, 12, and 14. [Condition XIII of Approval to Construct of December 21, 1977 and 40 CFR §60.8(c)]
b. Compliance shall be based on the total heat input from all fossil fuels burned. [40 CFR 60.43 (c)]

c. Unless otherwise specified, the SO 2 emission limit defined inCondition II.D.1.a shall be measured by manual testing on a onehour average (the average of three one-hour tests). [A.A.C. R18-2-312]

d. At all times, including periods of startup, shutdown, and/or malfunction (as defined in Condition #s I.D.8, 12, and 14), the Permittee shall not cause to be discharged to the atmosphere from the stack of Unit 1 and Unit 2 any gases which contain SO 2 in excess of 0.27 pounds per million Btu derived from fossil fuels, based on a 12-month rolling average, averaged over Unit 1 and Unit 2. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 8]

e. At all times, except for periods of startup, shutdown, and/or malfunction (as defined in Condition #s I.D.8, 12, and 14), SO 2 emissions from Unit 1 and Unit 2 shall be limited to 15 percent or less of the potential boiler inlet SO 2 concentration (85 percent reduction) based on a 90-day rolling average, averaged over Units 1 and Unit 2. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 9]

2. Air Pollution Control Requirements

At all times when the system is in operation, including periods of startup, shutdown, and malfunction as defined in Condition #s I.D.8, 12, and 14, the Permittee shall, to the extent practicable , maintain and operate the Niro dry flue gas desulfurization systems in a manner consistent with good air pollution control practice for minimizing SO 2 emissions. [40 CFR 60.11 (d) and A.A.C. R18-2-331.A.3.e] [Material Permit Conditions are def ined by underline and italics]
3. Monitoring, Recordkeeping, and Reporting Requirements

a. The Permittee shall calibrate , maintain, and operate continuous monitoring systems for measuring SO 2 emissions. [40 CFR 60.45 (a) and A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are def ined by underline and italics]Permit #53418 34 of 131 August 15, 2012

Tucson Electric Power-SGS b. The continuous emission monitoring systems (CEMS) for SO 2 shall meet the following requirements:

(1) 40 CFR Part 75, Appendix A, “Specification and Test Procedures”

(a) Installation and measurement location

(b) Equipment specifications

(c) Performance specifications

(d) Data acquisition and handling systems

(e) Calibration gas

(f) Certifications tests and procedures

(g) Calculations

(2) 40 CFR Part 75, Appendix B, “Quality Assurance and Quality Control Procedure”

(a) Quality control program

(b) Frequency of testing

(3) Data Reduction

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

c. The Permittee shall comply with all applicable recordkeeping and reporting requirements of 40 CFR Part 75 Subparts F and G respectively.

d. Excess Emissions

(1) Excess emission and monitoring system performance (MSP) reports for Unit 1 and Unit 2 shall be submitted to the Department and EPA Region IX for every calendar quarter. All quarterly reports shall be postmarked by the 30 th day following the end of each calendar quarter. Each excess emission and MSP report shall include the information required in Condition II.D.3.d (2). Periods of excess emissions and monitoring systems (MS) downtime that shall be reported are defined as follows: [40 CFR 60.45 (g)]Permit #53418 35 of 131 August 15, 2012

Tucson Electric Power-SGS Sulfur Dioxide

Excess emissions for Unit 1 and Unit 2 are defined as any three-hour period during which the averageemissions (arithmetic average of three contiguous onehour periods) of SO 2 as measured by a continuous monitoring system are in excess of the applicable standard in Condition II.D.1.a. [40 CFR 60.45 (g)(2)]
(2) The summary quarterly report form submission required in Condition II.D.3.d (1) shall be in the format specified in 40 CFR 60.7(d). The excess emissions report shall include the following information: [40 CFR 60.7 (c)]
(a) The magnitude of excess emissions computed, any conversion factor(s) used, the date and time of commencement, 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, malfunctions (as defined in Condition #s I.D.8, 12, and 14) of the affected facility, the nature and cause of any malfunction (if known), the corrective action taken or preventative measures adopted.

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

(d) When no excess emissions have occurred or the CEMS have not been inoperative, repaired, or adjusted, such information shall be stated in the report.

(3) In addition to the reports under Conditions II.D.3.d (1) and (2), the Permittee shall report emissions exceeding an emission limitation or standard in accordance with Condition XII.B, Attachment “A”. [A.A.C. R18-2-306.A.5.b]

e. Monitoring for the Permittee’s compliance with the SO 2 emission limit in Condition II.D.1.d shall be determined as follows:

(1) The Permittee shall record Hourly Average Emission Rate (as defined in Condition #s I.D.19.a and b) data for SO 2 in lbs/MMBtu for each hour of Unit operation.Permit #53418 36 of 131 August 15, 2012

Tucson Electric Power-SGS (2) Each calendar month, the Permittee shall calculate a 12- month rolling average emission rate calculated as the arithmetic average of the immediately prior 12 Monthly Averages (as defined in Condition I.D.19.e), in lbs/MMBtu. This calculation shall be made available for review by the fifth working day following the end of each rolling 12-month average period.

(3) If the calculated 12-month rolling average emission rate exceeds the applicable mass emission limit set forth in Condition II.D.1.d, the Permittee shall be in violation of such mass emission limit, and shall be deemed to have been in violation for each day in the last occurring calendar month included in the calculation of such 12- month rolling average emission rate. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 17]
(4) Unless explicitly specified elsewhere in this Permit, all average emission rates shall:

(a) Include all periods of startup, shutdown, and malfunction (as defined in Condition #s I.D.8, 12, and 14) and emergency; and

(b) Exclude the following:

(i) data for a Unit on a day that has not operated for at least one hour;

(ii) data for a Unit from periods when the Unit is not operating; and

(iii) Other inappropriate data as specified in the applicable EPA testing regulations at 40 CFR Part 60, Appendix A, and Part 75 (e.g., from periods of malfunction by the monitoring system). [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 19]
f. Monitoring for SO 2 Control Efficiency

The Permittee’s compliance with the SO 2 reduction requirement in Condition II.D.2.b shall be determined as follows:

(1) The Permittee shall separately record, except for periods of startup, shutdown or malfunction (as defined in Conditions #s I.D.8, 12, or 14),

(a) Hourly Average Boiler Inlet SO 2 Concentrations (as defined in Condition I.D.20.b), andPermit #53418 37 of 131 August 15, 2012

Tucson Electric Power-SGS (b) Hourly Average Stack Outlet SO 2 Concentrations (as defined in Condition I.D.20.a), for Unit 1 and Unit 2.

(2) For each Calendar Day, the Permittee shall calculate:

(a) the arithmetic average of the Hourly Average Boiler Inlet SO 2 Concentrations, expressed in lbs/MMBtu, for each of Unit 1 and Unit 2 in a day (the “Combined Daily Inlet Average”), and

(b) the arithmetic average of the Hourly Average Stack Outlet SO 2 Concentrations, expressed in lbs/MMBtu, for each of Unit 1 and Unit 2 in that day (the “Combined Daily Outlet Average”).

(3) For each Calendar Day, the Permittee shall calculate the daily average SO 2 reduction rate for Unit 1 and 2 as follows: (Combined Daily Inlet Average – Combined Daily Outlet Average)/ Combined Daily Inlet Average, expressed as a percentage (the “Daily Average Reduction Rate”).

(4) For each Calendar Day, the Permittee shall calculate and record a 90-day rolling average Daily Average Reduction Rate calculated as the arithmetic average of the immediately prior 90 Daily Average Reduction Rates.

(5) If that average calculated above is less than the 85 percent SO 2 reduction requirement in Condition II.D.2.b, the Permittee shall be in violation of such SO 2 reduction requirement for the last occurring Calendar Day included in the calculation of such 90-day rolling average Reduction Rate. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 18]
(6) Unless explicitly specified elsewhere in this Permit, all average emission reduction efficiencies shall include all period of emergency and exclude the following:

(a) data for Unit on a day that has not operated for at least one hour;

(b) data for a Unit from periods when the Unit is not operating; and

(c) other inappropriate data as specified in the applicable EPA testing regulations at 40 CFR Part 60, Appendix A, and Part 75 (e.g., fromPermit #53418 38 of 131 August 15, 2012

Tucson Electric Power-SGS periods of malfunction by the monitoring system). [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 19]
4. Testing Requirements [A.A.C.R18-2-306.A.3.c & 312]

The Permittee shall perform an annual performance test to determine the sulfur dioxide concentration using EPA Reference Method 6 or 6C.

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

Compliance with the Conditions of this Section shall be deemed compliance with Condition XIII of Approval to Construct of December 21, 1977, Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 17 & 19, 40 CFR 60.43 (c), 60.45 (a), (g), and (g)(2).

E. Nitrogen Oxides (NO x )

1. Emission Limitations/Standards

a. The Permittee shall not cause to be discharged into the atmosphere from the stacks of Unit 1 and Unit 2 any gases which contain nitrogen oxides, expressed as NO 2 in excess of 0.697 pounds per million Btu derived from fossil fuel except for periods of startup, shutdown, and malfunction as defined in Condition #s I.D.8, 12, and 14. [Condition XIII of Approval to Construct of December 21, 1977 and 40 CFR §60.8(c)]
b. Unless otherwise specified, the NO x emission limit in Condition II.E.1.a shall be measured by manual testing on a one-hour average (the average of three one-hour tests). [A.A.C. R18-2-312]
c. At all times, except for periods of major burner malfunction (as defined in Condition I.D.7 of this Attachment), the Permittee shall not cause to be discharged to the atmosphere from the Stack of Unit 1 and Unit 2 any gases which contain nitrogen oxides, expressed as NO 2 , in excess of 0.22 lb/MMBtu derived from fossil fuel, based on a 12-month rolling average over Unit 1 and Unit 2. The exception for periods of operation during a major burner malfunction is applicable only if:

(1) The Permittee reports the major burner malfunction to ADEQ within two (2) business days and,

(2) Within seven (7) business days, the Permittee provides ADEQ with a compliance plan to correct the major burner malfunction as expeditiously as practicable. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 10]Permit #53418 39 of 131 August 15, 2012

Tucson Electric Power-SGS 2. Monitoring/Recordkeeping/Reporting Requirements

a. The Permittee shall calibrate , maintain, and operate continuous monitoring systems for measuring the NO x emissions and CO 2 . [40 CFR 60.45 (a) and A.A.C. R18-2-331.a.3.c] [Material Permit Conditions are def ined by underline and italics]
b. The continuous emission monitoring systems for NO x and CO 2 shall meet the following requirements:

(1) 40 CFR Part 75, Appendix A, “Specification and Test Procedures”

(a) Installation and measurement location

(b) Equipment specifications

(c) Performance specifications

(d) Data acquisition and handling systems

(e) Calibration gas

(f) Certifications tests and procedures

(g) Calculations

(2) 40 CFR Part 75, Appendix B, “Quality Assurance and Quality Control Procedure”

(a) Quality control program

(b) Frequency of testing

(3) Data Reduction

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

c. The Permittee shall comply with all applicable recordkeeping and reporting requirements of 40 CFR Part 75 Subparts F and G respectively.

d. Excess Emissions

(1) Excess emission and monitoring system performance (MSP) reports for Unit 1 and Unit 2 shall be submitted to the Department and EPA Region IX for every calendar quarter. All quarterly reports shall be postmarked by the 30 th day following the end of each calendar quarter. Each excess emission and MSP reportPermit #53418 40 of 131 August 15, 2012

Tucson Electric Power-SGS shall include the information required in Condition II.E.2.d (2). Periods of excess emissions and monitoring systems (MS) downtime that shall be reported are defined as follows: [40 CFR 60.45 (g)]
Nitrogen Oxides

Excess emissions for Unit 1 and Unit 2 are defined as any three-hour period during which the averageemissions (arithmetic average of three contiguous onehour periods) of nitrogen oxides as measured by a continuous monitoring system are in excess of the applicable standard in Condition II.E.1.a.. [40 CFR 60.45 (g)(2)]
(2) The summary quarterly report form submission required in paragraph II.E.2.d (1) shall be in the format specified in 40 CFR 60.7(d). The excess emissions report shall include the following information: [40 CFR 60.7 (c)]
(a) The magnitude of excess emissions computed, 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.

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

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

(d) When no excess emissions have occurred or the CMS(s) have not been inoperative, repaired, or adjusted, such information shall be stated in the report.

(3) In addition to reports under Conditions II.E.2.d (1) and- (2), the Permittee shall report emissions exceeding an emission limitation or standard in accordance with Section XII.B of Attachment “A” of this permit. [A.A.C. R18-2-306.A.5.b]Permit #53418 41 of 131 August 15, 2012

Tucson Electric Power-SGS e. Monitoring for NO 2 emission limit in Condition II.E.1.c

The Permittee’s compliance with the NO 2 emission limit in Condition II.E.1.c shall be determined as follows:

(1) The Permittee shall record Hourly Average Emission Rate (as defined in Condition I.D.19.a and b) data for NO x in lbs/MMBtu for each hour of Unit operation.

(2) The Permittee shall, for each calendar month, calculate a 12-month rolling average emission rate calculated as the arithmetic average of the immediately prior 12 Monthly Averages (as defined in Condition I.D.19.e), in lbs/MMBtu. This calculation shall be made available for review by the fifth working day following the end of each rolling 12-month average period.

(3) If the calculated 12-month rolling average emission rate exceeds the applicable mass emission limit set forth in Specific Condition II.E.1.c, the Permittee shall be in violation of such mass emission limit, and shall be deemed to have been in violation for each Day in the last occurring calendar month included in the calculation of such 12-month rolling average emission rate. [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 17]
(4) Unless explicitly specified elsewhere in this Permit, all average emission rates shall include all periods of startup, shutdown, and malfunction (as defined in Condition #s. I.D.8, 12, and 14), and emergency and exclude the following:

(a) data for Unit on a day that has not operated for at least one hour; (b) data for a Unit from periods when the Unit is not operating; and (c) other inappropriate data as specified in the applicable EPA testing regulations at 40 CFR Part 60, Appendix A, and Part 75 (e.g., from periods of malfunction by the monitoring system). [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 19]
3. Testing Requirements

The Permittee shall perform an annual performance test to determine the nitrogen oxides concentration using EPA Reference Method 7 or 7E. [A.A.C.R18-2-306.A.3.c & -312] [Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 14]Permit #53418 42 of 131 August 15, 2012

Tucson Electric Power-SGS 4. Permit Shield [A.A.C.R18-2-325]

Compliance with the Conditions of this Section shall be deemed compliance with Condition XIII Approval to Construct of December 21, 1977, Consent Decree of June 24, 2005, CV01-2189 PCT EHC (D. Ariz.), § 10, 14, 17, & 19, 40 CFR 60.45 (a), (g), and (g)(2).

III. UNIT 3 AND UNIT 4 (P3 and P4)

A. Applicability

This Section applies to Unit 3 and Unit 4 as described in Condition I.D.18 and Equipment List, Attachment “C”.

B. Operating Limitations

1. Fuel Limitations

a. The Permittee shall burn only coal and No. 2 distillate oil including bio-diesel as fuel in Unit 3 and Unit 4. [A.A.C. R18-2-306.A.2]
b. The Permittee shall not allow or permit the heat input from all fuels to exceed 4,200 million Btu per hour for Unit 3 or Unit 4. Compliance with this heat input limitation shall be based on a 30-day rolling average. [A.A.C. R18-2-406.A.4]

c. The Permittee shall maintain the following records: [A.A.C. R18-2-306.A.4]

(1) Date, time, types of fuels, and ranks of coal burned in each boiler unit; and

(2) 30-day rolling average of heat input in million Btu per hour from all fuels to each unit.

2. Vapor Extractor Blower Vents, Generator Seal Oil Vapor Extractor, and Hydraulic Fluid Reservoir Vapor Extractors [A.A.C. R18-2-730.F]
The Permittee shall process, store, use, and transport materials including solvents or volatile compounds in such a manner and by such means that they will not evaporate, leak, escape, or be otherwise discharged into the atmosphere so as to cause or contribute to air pollution. Where means are available to reduce effectively the contribution to air pollution from evaporation, leakage, or discharge, the installation and usage of such control methods, devices, or equipment shall be mandatory.

3. Unit 4 Fuel Oil Storage Tank

a. The Permittee shall not emit gaseous or odorous material from equipment, operations, or premises under his control in suchPermit #53418 43 of 131 August 15, 2012

Tucson Electric Power-SGS quantities or concentrations as to cause air pollution. [A.A.C. R18-2-730.D]
b. The Permittee shall process, store, use, and transport materials including solvents or volatile compounds in such a manner and by such means that they will not evaporate, leak, escape, or be otherwise discharged into the atmosphere so as to cause or contribute to air pollution. Where means are available to reduce effectively the contribution to air pollution from evaporation, leakage, or discharge, the installation and usage of such control methods, devices, or equipment shall be mandatory. [A.A.C. R18-2-730.F]

c. 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 may 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]
4. Mercury General Provisions

a. The Permittee shall comply with the following applicable requirements:

(1) The Permittee shall develop and implement a written startup, shutdown, and malfunction plan as defined in Condition #s. I.D.8, 12, and 14. The plan shall describe in detail, procedures for operating and maintaining Unit 3 and Unit 4 during periods of startup, shutdown, and malfunction and a program of corrective action for malfunctioning process and air pollution control equipment used to comply with the relevant emission standards. [Condition No. III.E.1. of Significant Permit Revision No. 1001554 to Title V Permit No. 1000105]
(2) For the purposes of Condition III.B.4.a (1), each of the fabric filter baghouses and dry flue gas desulfurization systems required by Conditions III.C.2.a and III.D.2, shall be considered air pollution control equipment. [Condition No. III.E.2. of Significant Permit Revision No. 1001554 to Title V Permit No. 1000105]

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C. R 18-2-730.D, F, and G.Permit #53418 44 of 131 August 15, 2012

Tucson Electric Power-SGS C. Particulate Matter (PM/PM 10 ) and Opacity

1. Emission Limitations/Standards

a. Opacity Standard

The Permittee shall not cause to be discharged into the atmosphere from the stack of Unit 3 or Unit 4 any gases which exhibit greater than 15 percent opacity, based on a six-minute average, except for periods of startup, shutdowns, or malfunction as defined in Condition #s I.D.8, 12, and 14. [40 CFR 60.42 Da(b), A.A.C. R18-2-331.A.3.f, and -406.A.4] [Material Permit Conditions are def ined by underline and italics]

b. Particulate Matter Emission Standards

(1) The Permittee shall not cause to be discharged into the atmosphere from the stack of Unit 3 or Unit 4 any gases which contain particulate matter in excess of 0.015 lb per million Btu heat input derived from combustion of fuel (excluding condensable particulate matter). Compliance with this emission limit shall be determined using a three-hour averaging period. [A.A.C. R18-2-406.A.4]

(2) The Permittee shall not cause to be discharged into the atmosphere from the stack of Unit 3 or Unit 4 any gases which contain PM 10 (including both filterable PM 10 and condensable PM 10 ) in excess of 0.055 lb per million Btu heat input derived from combustion of fuel. Compliance with this emission limit shall be determined using a three-hour averaging period. [A.A.C. R18-2-406.A.4]

(3) The particulate matter emission limits in Conditions III.C.1.b(1) and (2) shall apply at all times except during periods of startup, shutdown, or malfunction as defined in Condition #s I.D.8, 12, and 14. [A.A.C. R18-2-406.A.4]

(4) NSPS Subpart Da limit for Unit 4 [40 CFR 60.42Da (c), (d), and 60.48Da (g)(3)]

(a) The Permittee shall not cause to be discharged into the atmosphere from the stack of Unit 4 any gases which contain particulate matter in excess of either 0.14 lb/MWh gross energy output; or 0.015 lb/MMBtu heat input derived from the combustion of solid, or liquid fuel.

(b) As an alternative to meeting the above requirements for Unit 4, the Permittee may elect to not exceed 0.03 lb/MMBtu heat input derived from the combustion of solid or liquid fuel andPermit #53418 45 of 131 August 15, 2012

Tucson Electric Power-SGS 99.9 percent reduction. Compliance with the daily average particulate matter emission limitations is determined by calculating the arithmetic average of all hourly emission rates for particulate matter each boiler operating day, except for data obtained during startup, shutdown, and malfunction.

2. Air Pollution Control Requirements

a. At all times when the equipment is in operation, including periods of startup, shutdown, and malfunction as defined in Condition #s I.D.8, 12, and 14, the Permittee shall, to the extent practicable

, maintain and operate the fabric filter baghouses in a manner consistent with good air pollution control practice for minimizing particulate matter emissions. [40 CFR 60.11 (d) and A.A.C. R18-2-331.A.3.e] [Material Permit Conditions are def ined by underline and italics]
b. The fabric filter baghouses shall not be bypassed, except during periods of startup or shutdown (as defined in Condition #s I.D.12 and 14) while Unit 3 or Unit 4 is combusting fossil fuel. [A.A.C. R18-2-406.A.4]
3. Monitoring/Recordkeeping/Reporting Requirements

a. Opacity

(1) Monitoring for Opacity

(a) The Permittee shall calibrate , maintain, and operate continuous monitoring systems, and shall record the output of the systems, for measuring the opacity of emissions discharged to the atmosphere from Unit 3 and Unit 4. [40 CFR 60.49Da (a), 75.10 (a), A.A.C. R18-2-331.A.3.c, and -406.A.4] [Material Permit Conditions are def ined by underline and italics]
(b) The continuous opacity monitoring systems (COMS) shall meet the following data reduction requirements: [40 CFR 60.13 (h)]

(i) The Permittee shall reduce all data fromthe COMS to 6-minute averages. Sixminute opacity averages shall be calculated from 36 or more data points equally spaced over each 6-minute period.

(ii) Data recorded during periods of system breakdowns, repairs, calibration checks,Permit #53418 46 of 131 August 15, 2012

Tucson Electric Power-SGS 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.

(2) NSPS Requirements for Continuous Monitoring Systems for Unit 3 & Unit 4

The COMS required by Condition III.C.3.a(1)(a), shall meet the following:

(a) Calibration requirements at 40 CFR 60.13(d).

(b) Operational requirements at 40 CFR 60.13(e).

(c) Performance Specifications at 40 CFR Part 60, Appendix B.

(d) Notification and recordkeeping requirements at 40 CFR 60.7.

(3) Acid Rain Program Requirements for Continuous Monitoring Systems

The COMS required by Condition III.C.3.a(1)(a), shall meet all applicable requirements at 40 CFR Part 75. This shall include, but shall not be limited to, the following:

(a) Hourly operating requirements at 40 CFR 75.10(d)

(b) Data reduction requirements at 40 CFR 75.10(d)(2)

(c) Certification and recertification requirements at 40 CFR 75.20.

(4) The Permittee shall comply with all applicable recordkeeping and reporting requirements of 40 CFR Part 75, Subparts F and G, respectively.

b. Compliance Assurance Monitoring for Particulate Matter

(1) The Permittee shall maintain and continuously operate the COMS to measure visible emissions (Opacity) which is indicative of operation of the Unit 3 and Unit 4 fabric filter in a manner necessary to comply with particulate matter emission standards. The fabric filter parametersPermit #53418 47 of 131 August 15, 2012

Tucson Electric Power-SGS have been identified in Table 4. [40 CFR 64.6 (c)(1), A.A.C. R18-2-306.A.3.c., and -406.A.4]
Table 4: Units 3 and Unit 4 PM CAM for Fabric Filter Baghouses

Indicators Indicator No. 1: Visible Emissions Opacity

Measurement Approach Visible Emissions (Opacity) will be measured continuously with a continuous Opacity Monitoring System (COMS) installed on each stack.

Indicator Range Visible Emissions on a 24-hour rolling average basis not to exceed an opacity baseline level established during each performance test conducted according to Condition III.C.4.b. The value of the opacity baseline level is determined by averaging all of the 6-minute average opacity values (reported to the nearest 0. 1 percent opacity) from the COMS measurements recorded during each of the test run intervals conducted for the performance test, and then adding 5.0 percent opacity to the calculated average opacity value for all of the test runs. The value of the baseline level shall not exceed 8.0 percent.
A 24-hour rolling average opacity excluding periods of facility startup, shutdown and malfunction that is greater than the established opacity baseline level triggers an alarm and constitutes an excursion. Each subsequent 24-hour rolling period during which the alarm continues for the same reason shall be considered a single excursion.
An excursion from the indicator ranges does not necessarily indicate an exceedance, deviation, or violation, but is indicative of the need for investigation and possible corrective action to minimize the potential for an exceedance, deviation or violation.

Performance Criteria - Data Representativeness Visible emissions (Opacity is measured on stack)

Performance Criteria - Operation Status n/a

Performance Criteria - QA/QC Practices TEP is required by the permit to meet the QA/QC requirements of 40 CFR Part 60, Appendix B, Performance Specification 1, “Specification and Test Procedures for Opacity Continuous Emission Monitoring Systems in Stationary Sources”

Performance Criteria - Monitoring Frequency Continuous opacity monitoring with data recorded as 6-minute averages.

Performance Criteria - Data Collection Procedure Continuous

Performance Criteria - Averaging Period Initiate investigation and possible corrective action within 24 hours of triggering an excursion for Unit 3 or Unit 4.

(2) A twenty four-hour rolling average opacity, except during startup, shutdown, and malfunction (as defined in Condition #s I.D.8, 12, and 14) that is greater than the established baseline opacity shall constitute an excursion. [40 CFR 64.3 (a)(2), A.A.C. R18-2-306.A.3.b, and -406.A.4]
(3) The twenty four-hour rolling average opacity parameter shall be equipped with an alarm. [40 CFR 64.6 (c)(1), A.A.C. R18-2-306.A.3.b, and -406.A.4]Permit #53418 48 of 131 August 15, 2012

Tucson Electric Power-SGS (4) A twenty-four-hour average opacity excluding periods of facility startup, shutdown and malfunction (as defined in Condition #s I.D.8, 12, and 14) that is greater than the established opacity baseline level triggers an alarm and constitutes an excursion. Each subsequent 24-hour rolling period during which the alarm continues for the same reason shall be considered a single excursion under 40 CFR Part 64, § 64.7. [40 CFR 64.6 (c)(2), A.A.C. R18-2-306.A.3.b, and -406.A.4]
(5) Prior to making any changes to the alarm set point, the Permittee shall submit written notification to the Department. Such notification shall include the proposed new alarm set point and the reason for the proposed change. The proposed change may be made without the prior approval of the Department. [40 CFR 64.6 (c)(2), A.A.C. R18-2-306.A.3.b, and -406.A.4]
(6) The Permittee shall conduct monitoring in accordance with the following provisions. [40 CFR 64.7 (c), A.A.C. R18-2-306.A.3.b, and -406.A.4]
(a) The Permittee shall conduct all monitoring in continuous operation (or shall collect data at all required intervals) at all times that the pollution specific emission unit (PSEU) is operating. 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).

(b) 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.

(7) The Permittee shall to the extent practicable respond to excursions as follows. [40 CFR 64.7 (d), A.A.C. R18-2-306.A.3.b, and -406.A.4]
(a) The Permittee upon detecting an excursion or exceedance shall restore operation of the PSEU (including the control device and associated capture system) to its normal or usual manner of operation as expeditiously as practicable in accordance with good air pollution control practices for minimizing emissions.Permit #53418 49 of 131 August 15, 2012

Tucson Electric Power-SGS (b) The Permittee shall, to the extent practicable, minimize the period of any startup, shutdown, or malfunction and take 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 excused startup, shutdown, and malfunction conditions (as defined in Condition #s I.D.8, 12, and 14)).

(8) For the purposes of permit deviation reporting under Condition XII of Attachment “A”, the Permittee shall include the following information required by 40 CFR Part 64, § 64.9(a): [40 CFR 64.7 (d), A.A.C. R18-2-306.A.3.b, and -406.A.4]
(a) Summary information on the number, duration and cause (including unknown cause, if applicable) of excursions or exceedances, as applicable, and the corrective action taken:

(b) 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).

c. NSPS Subpart Da Monitoring Requirements for Unit 4

(1) If the output-based emissions limitation for Unit 4 under Condition III.C.1.b(4) is used to demonstrate compliance then the Permittee shall certify

, operate, and maintain a continuous monitoring system for measuring particulate matter emissions . If the input-based emission limitation for Unit 4 under Condition III.C.1.b(4) is used to demonstrate compliance then the Permittee as an option may install, certify , operate, and maintain a continuous monitoring system for measuring particulate matter in lieu of Condition III.C.3.c(2). [40 CFR 60.49 Da (t) and A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are def ined by underline and italics]
(2) The Permittee shall monitor the performance of fabric filter baghouse associated with Unit 4 by utilizing the COMS required by Condition III.C.3.a.(1)(a). In addition to the requirements of Conditions III.C.3.a.(1) and (2), the Permittee shall operate the COMS according to the following requirements: [40 CFR 60.48 Da (o)(2),(2)(i), and (ii)]Permit #53418 50 of 131 August 15, 2012

Tucson Electric Power-SGS (a) During each Unit 4 performance test conducted in accordance with Condition III.C.4.b.(1), the Permittee shall establish an opacity baseline level. The value of the opacity baseline level is determined by averaging all of the 6-minute average opacity values (reported to the nearest 0.1 percent opacity) from the COMS measurements recorded during each of the test run intervals conducted for the performance test, and then adding 2.5 percent opacity to the calculated average opacity value for all of the test runs. If the calculated average value plus 2.5 percent is less than 5.0 percent, then the opacity baseline level is set at 5.0 percent. [40 CFR 60.48 Da (o)(2)(iii)]
(b) The Permittee shall evaluate the preceding 24- hour average opacity level measured by the COMS each boiler operating day excluding periods of affected facility startup, shutdown, or malfunction. If the measured 24-hour average opacity emission level is greater than the baseline opacity level determined in Condition III.C.3.c.(2)(a), the Permittee shall initiate investigation of the relevant equipment and control systems within 24 hours of the first discovery of the high opacity incident and take the appropriate corrective action as soon as practicable to adjust control settings or repair equipment to reduce the measured 24-hour average opacity to a level below the baseline opacity level. [40 CFR 60.48 Da (o)(2)(iv)]

(c) The Permittee shall record the opacity measurements, calculations performed, and any corrective actions taken. The record of corrective action taken shall include the date and time during which the measured 24-hour average opacity was greater than baseline opacity level, and the date, time, and description of the corrective action. [40 CFR 60.48 Da (o)(2)(v)]

d. NSPS Subpart Da Reporting Requirements

(1) For PM emissions, the performance test data from the performance test and from the performance evaluation of the continuous monitors (including the transmissometer) shall be submitted to the Director and the Administrator. [40 CFR 60.51 Da (a)]Permit #53418 51 of 131 August 15, 2012

Tucson Electric Power-SGS (2) For any periods for which opacity emissions data are not available, the Permittee shall submit a signed statement indicating if any changes were made in operation of the emission control system during the period of data unavailability. Operations of the control system and Unit 3 and Unit 4 during periods of data unavailability are to be compared with operations of the control system and affected facility before and following the period of data unavailability. [40 CFR 60.51 Da (f)]

(3) The Permittee shall submit a signed statement indicating whether: [40 CFR 60.51 Da (h)]

(a) The required continuous monitoring system calibration, span, and drift checks or other periodic audits have or have not been performed as specified.

(b) The data used to show compliance was or was not obtained in accordance with approved methods and procedures of 40 CFR 60 and is representative of plant performance.

(c) The minimum data requirements have or have not been met; or, the minimum data requirements have not been met for errors that were unavoidable.

(d) Compliance with the standards has or has not been achieved during the reporting period.

(4) For the purposes of the reports required under 40 CFR 60.7 and this permit, periods of excess emissions are defined as all 6-minute periods during which the average opacity exceeds the applicable opacity standards under 40 CFR 60.42Da(b) and III.C.1.a of this permit. Opacity levels in excess of the applicable opacity standard and the date of such excesses are to be submitted to the Department and the Administrator each calendar quarter. [40 CFR 60.51 Da (i)]

(5) The Permittee shall submit the written reports required under this section and 40 CFR 60 Subpart A to the Director and the Administrator semiannually for each six-month period. All semiannual reports shall be postmarked by the 30 th day following the end of each six-month period. [40 CFR 60.51 Da (j)]

(6) The Permittee may submit electronic quarterly reports for opacity in lieu of submitting the written reportsPermit #53418 52 of 131 August 15, 2012

Tucson Electric Power-SGS required under Condition III.C.3.d (4). The format of each quarterly electronic report shall be coordinated with the Director. The electronic report(s) shall be submitted no later than 30 days after the end of the calendar quarter and shall be accompanied by a certification statement from the Permittee, indicating whether compliance with the applicable emission standards and minimum data requirements of 40 CFR 60 Subpart Da was achieved during the reporting period. Before submitting reports in the electronic format, the Permittee shall coordinate the Director to obtain their agreement to submit reports in this alternative format. [40 CFR 60.51Da (k)]

(7) The Permittee shall prepare and submit to the Director and the Administrator for approval a unit-specific monitoring plan for each monitoring system, at least 45 days before commencing certification testing of the monitoring systems. The Permittee shall comply with the requirements in the plan. The plan must address the requirements of 40 CFR 60.49Da(s)(1) through (6). [40 CFR 60.49 Da (s)]
4. Testing

a. Opacity

(1) The Permittee shall perform annual performance tests to determine compliance with the opacity limitations in Condition III.C.1.a. [40 CFR 60.8 and A.A.C.R18-2-306.A.3.c]
(2) All performance tests for opacity shall be performed in accordance with 40 CFR 60.8 and 60.11. [40 CFR 60.8]

b. Particulate Matter

(1) The Permittee shall perform annual performance tests to determine compliance with the PM/PM 10 emission limitations in Condition #s III.C.1.b(1), b(2), and b(4). [40 CFR 60.8 and A.A.C.R18-306.A.3.c]

(2) If the measured 24-hour average opacity for Unit 4 remains at a level greater than the opacity baseline level after 7 boiler operating days, then the Permittee shall conduct a PM performance test and establish a new opacity baseline value according to Condition III.C.3.c(2)(a). This new performance test shall be conducted within 60 days of the date that the measured 24-hour average opacity was first determined to exceed the baseline opacity level unless a waiver is granted by the Director. [40 CFR 60.48 Da (o)(2)(vi)]Permit #53418 53 of 131 August 15, 2012

Tucson Electric Power-SGS (3) All performance tests for particulate matter shall be performed in accordance with 40 CFR 60.8. EPA Reference Method 5 shall be used. [40 CFR 60.8]

(4) All performance tests for PM 10 shall be performed in accordance with the provisions of 40 CFR 60.8. EPA Reference Method 5 or 201 or 201A shall be used for filterable PM 10 and EPA Reference Method 202 shall be used for condensable PM 10. Testing for filterable and condensable PM 10 shall be performed concurrently. Testing for PM 10 may be performed concurrently with testing for particulate matter. [40 CFR 60.8]

(5) The dry basis F factor (O 2 ) procedures in EPA Reference Method 19 shall be used to calculate the PM and PM 10 emission rates

. [40 CFR 60.50 Da (b)(1) and A.A.C. R18-2-406A.4]
(6) As an alternative to the dry basis F factor (O 2 ) procedures in EPA Reference Method 19, the Fc CO 2 factors in EPA Reference Method 19 may be used to calculate the particulate matter and PM 10 emission rates, subject to the stipulations of 40 CFR Part 60, Subpart D, 60.46(d)(1). [40 CFR 60.50 Da (e)(2)]

(7) The sampling time and sample volume for each test run shall be at least 120 minutes and 60 dry standard cubic feet. [40 CFR 60.50 Da (b)(2)(i)]

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

Compliance with the Conditions of this Section shall be deemed compliance with 40 CFR 60.42Da(b), (c), & (d), 60.48Da(g)(3), (o)(2), (o)(2)(i), (o)(2)(ii), (o)(2)(iii), (o)(2)(iv), (o)(2)(v), (o)(2)(vi), 60.49Da(a), (s), (t), 60.50Da(b)(i), (e)(2), 60.51Da(a), (f), (h), (i), (j),and (k).

D. Sulfur Dioxide (SO 2 )

1. Emission Limitations/Standards

a. The Permittee shall not cause to be discharged into the atmosphere from Unit 3 stack, any gases which contain SO 2 in excess of:

(1) 520 nanograms per Joule (1.20 lb per million Btu) heat input and 10 percent of the potential combustion concentration (90 percent reduction) derived from combustion of coal; or [40 CFR §60.43 Da (a)(1)]Permit #53418 54 of 131 August 15, 2012

Tucson Electric Power-SGS (2) 30 percent of the potential combustion concentration (70 percent reduction), when emissions are less than 260 nanograms per Joule (0.60 lb per million Btu) heat input derived from combustion of coal. [40 CFR §60.43 Da (a)(2)]

b. The Permittee shall not cause to be discharged into the atmosphere from Unit 4 stack, any gases which contain SO 2 in excess of: [40 CFR §60.43 Da (i)(1)]

(1) 180 ng/J (1.4 lb/MWh) gros s energy output on a 30-day rolling average basis; or

(2) 5 percent of the potential combustion concentration (95 percent reduction) on a 30-day rolling average basis.

c. The SO 2 emission standard in Condition #s III.D.1.a and b shall apply at all times except during periods of startup or shutdown (as defined in Condition #s I.D.12 or 14), or periods when emergency conditions exist and the flue gas desulfurization system is malfunctioning. [40 CFR 60.48 Da (c)]

d. Compliance with the SO 2 emission standard in Conditions III.D.1.a and b shall be based upon a 30-day rolling average. [40 CFR 60.48 Da (e)]
2. Air Pollution Control Requirements

At all times when Unit 3 or Unit 4 is in operation, including periods of startup, shutdown, and malfunction as defined in Condition #s I.D.8, 12, and 14, the Permittee shall, to the extent practicable , maintain and operate the dry flue gas desulfurization system in a manner consistent with good air pollution control practice for minimizing SO 2 emissions. [40 CFR 60.11(d) and A.A.C. R18-2-331.A.3.e] [Material Permit Conditions are def ined by underline and italics]
3. Monitoring/Recordkeeping/Reporting Requirements

a. Monitoring for SO 2
(1) The Permittee shall calibrate , maintain, and operate continuous emission monitoring systems (CEMS), and record the output of the system, for measuring SO 2 emissions from Unit 3 and Unit 4. The monitoring systems shall measure SO 2 emissions at both the inlet and outlet of the SO 2 control device. [40 CFR 60.49 Da (b), 75.10 (a), and A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are def ined by underline and italics]
(2) As an alternative to the continuous SO 2 emission monitoring system at the SO 2 control device inlet in Condition III.D.3.a(1), an “as-fired” fuel monitoringPermit #53418 55 of 131 August 15, 2012

Tucson Electric Power-SGS system (upstream of the coal pulverizers) meeting the requirements of EPA Reference Method 19 may be used to determine potential SO 2 emissions. [40 CFR 60.49 Da (b)(3)]
(3) The CEMS used to measure SO 2 emissions at the outlet of the SO 2 control devices shall meet the applicable citing requirements of 40 CFR Part 60, Appendix B, and 40 CFR Part 75, Appendix A.

b. Compliance Determination Requirements for NSPS SO 2 Emission Standard

For the purposes of demonstrating compliance with the SO 2 emission limitation in Condition III.D.1.a and b, the Permittee shall meet the following requirements:

(1) Emission data from the continuous flow monitoring system, diluent CO 2 or O 2 monitoring systems, and SO 2 emission monitoring systems, required by Conditions III.K.1, III.K.2, and III.D.3.a(1), shall be used to demonstrate compliance. [40 CFR 60.50 Da (c)(5)]
(2) For Unit 3, the Permittee shall obtain emission data for at least 18 hours in at least 22 out of 30 successive boiler operating days. For Unit 4, the Permittee shall obtain SO 2 emission data for at least 90 percent of all operating hours for each 30 successive boiler operating days. If this minimum data requirement cannot be met with a continuous monitoring system, the Permittee shall supplement the emission data in accordance with the following: [40 CFR 60.49 Da (f)]

(a) Data obtained from other monitoring systems approved by the Director, or

(b) For supplementary SO 2 concentration data, data obtained from EPA Reference Method 6 or 6A or 6B or 6C, in accordance with the provisions of 40 CFR 60.49Da (h).

(c) For supplementary diluent CO 2 or O 2 concentration data, data obtained from EPA Reference Method 3 or 3A or 3B, in accordance with the provisions of 40 CFR 60.49Da (h).

(3) Compliance with the SO 2 emission limitations and percentage reduction requirements under Condition III.D.1.a and b is based on the average emission rate for 30 successive operating days for Unit 3 and Unit 4. APermit #53418 56 of 131 August 15, 2012

Tucson Electric Power-SGS separate performance test is completed at the end of each boiler operating day after the initial performance test, and a new 30 day average emission rate and percent reduction is calculated to show compliance with the standards. Compliance with the applicable 30-day rolling average SO 2 emission limitation for Unit 3 and Unit 4 is determined by calculating the arithmetic average of all hourly SO 2 emission rates for the 30 successive operating days, except for data obtained during startup, shutdown, or emergency conditions. Compliance with the percentage reduction requirement is determined based on the average inlet and outlet sulfur dioxide emission rates for the 30 successive operating days. [40 CFR 60.48 Da (e) and (g)]

c. NSPS Requirements for CEMS

The CEMS for SO 2 emissions as required by Condition III.D.3.a shall meet the following requirements:

(1) Calibration requirements at 40 CFR 60.13(d)

(2) Operational requirements at 40 CFR 60.13(e)

(3) Performance Specifications at 40 CFR Part 60, Appendix B

(4) Quality Assurance Procedures at 40 CFR Part 60, Appendix F

(5) Notification and recordkeeping requirements at 40 CFR 60.7

d. Acid Rain Program Requirements for Continuous Monitoring Systems

The CEMS for SO 2 emissions as required by Condition III.D.3.a shall meet all applicable requirements of 40 CFR Part 75. This shall include, but shall not be limited to, the following requirements:

(1) 40 CFR Part 75, Appendix A, “Specification and Test Procedures”.

(2) 40 CFR Part 75, Appendix B, “Quality Assurance and Quality Control Procedure”.

(3) Equipment performance requirements at 40 CFR 75.10(b).Permit #53418 57 of 131 August 15, 2012

Tucson Electric Power-SGS (4) Hourly operating requirements at 40 CFR 75.10(d).

(5) Data reduction requirements at 40 CFR 75.10(d)(1).

(6) Missing data substitution requirements at 40 CFR 75.10(d)(3) and 40 CFR Part 75, Subpart D.

(7) Certification and recertification requirements at 40 CFR 75.20.

e. The Permittee shall comply with all applicable recordkeeping and reporting requirements of 40 CFR Part 75, Subparts F and G, respectively.

f. NSPS Subpart Da Reporting Requirements

(1) For SO 2 , the performance test data from the performance test and from the performance evaluation of the continuous monitors are submitted to the Director and the Administrator. [40 CFR 60.51 Da (a)]
(2) For SO 2 , the following is reported to the Director and the Administrator for each 24-hour period. [40 CFR 60.51 Da (b)]
(a) Calendar date

(b) The average SO 2 emission rates (ng/J or lb/million Btu) for each 30 successive boiler operating days, ending with the last 30-dayperiod in the quarter; reasons for noncompliance with the standard; and, description of corrective actions taken.

(c) For complying with the percent reduction requirement, percent reduction of the potential reduction combustion concentration of SO 2 for each 30 successive boiler operating days, ending with the last 30-day period in the quarter; reasons for non-compliance with the standard; and, description of corrective actions taken.

(d) Identification of the boiler operating days for which pollutant or diluent data have not been obtained by an approved method for at least 75 percent of operation of the facility; justification for not obtaining sufficient data; and description of corrective actions taken.

(e) Identification of the times when emissions data have been excluded from the calculation ofPermit #53418 58 of 131 August 15, 2012

Tucson Electric Power-SGS average emission rates because of startup, shutdown (as defined in Condition #s I.D.12 and 14), and emergency conditions, or other reasons, and justification for excluding data for reasons other than startup, shutdown, or emergency conditions.

(f) Identification of “F” factor used for calculations, method of determination, and type of fuel combusted.

(g) Identification of times when hourly averages have been obtained based on manual sampling methods.

(h) Identification of the times when the pollutant concentration exceeded full span of the CMS.

(i) Description of any modifications to the CMS which could affect the ability of the CMS to comply with Performance Specifications 2 or 3.

(3) If the minimum quantity of emission data as required by Condition §60.49Da is not obtained for any 30 successive boiler operating days, the following information obtained under the requirements of 60.48Da(h) is reported to the Director and the Administrator for that 30 day period: [40 CFR 60.51Da (c)]

(a) The number of hourly averages available for outlet emission rates (no) and inlet emission rates (ni)

(b) The standard deviation of hourly averages for outlet emission rates (so) and inlet emission rates (si) as applicable.

(c) The lower confidence limit for the mean outlet emission rate (Eo*) and the upper confidence limit for the mean inlet emission rate (Ei*) as applicable.

(d) The applicable combustion concentration.

(e) The ratio of the upper confidence limit for the mean outlet emission rate (Eo*) and the allowable emission rate (Estd) as applicable.

(4) If the SO 2 emission standard in Condition III.D.1.a is exceeded during emergency conditions because ofPermit #53418 59 of 131 August 15, 2012

Tucson Electric Power-SGS control system malfunction, the Permittee shall submit a signed statement: [40 CFR 60.51 Da (d)]

(a) Indicating if emergency conditions existed and requirements under 60.48Da(d) were met during each period, and

(b) Listing the following information:

(i) Time periods the emergency condition existed;

(ii) Electrical output and demand on the Permittee’s electric utility system and the affected facility.

(iii) Amount of power purchased from interconnected neighboring utility companies during the emergency period;

(iv) Percent reduction in emissions achieved;

(v) Atmospheric emission rate (ng/J) of the pollutant discharged; and

(vi) Actions taken to correct control system malfunction.

(5) If fuel pretreatment credit toward the SO 2 emission standard in Condition III.D.1.a is claimed, the Permittee shall submit a signed statement: [40 CFR 60.51 Da (e)]
(a) Indicating what percentage cleaning credit was taken for the calendar quarter, and whether the credit was determined in accordance with the provisions of 40 CFR 60.50Da and Method 19 (appendix A of 40 CFR 60) ; and

(b) Listing the quantity, heat content, and date each pretreated fuel shipment was received during the previous quarter; the name and location of the fuel pretreatment facility; and the total quantity and total heat content of all fuels received at the affected facility during the previous quarter.

(6) For any periods for which SO 2 emission data is not available, the Permittee shall submit a signed statement indicating if any changes were made in operation of the emission control system during the period of data unavailability. Operations of the control system andPermit #53418 60 of 131 August 15, 2012

Tucson Electric Power-SGS Unit 3 and 4 during periods of data unavailability are to be compared with operation of the control system and affected facility before and following the period of data unavailability. [40 CFR 60.51 Da (f)]

(7) The Permittee shall submit a signed statement indicating whether: [40 CFR 60.51 Da (h)]

(a) The required CEMS calibration, span, and drift checks or other periodic audits have or have not been performed as specified.

(b) The data used to show compliance was or was not obtained in accordance with approved methods and procedures of 40 CFR 60 and is representative of plant performance.

(c) The minimum data requirements have or have not been met; or, the minimum data requirements have not been met for errors that were unavoidable.

(d) Compliance with the standards has or has not been achieved during the reporting period.

(8) The Permittee shall submit the written reports required under this section and 40 CFR 60 Subpart A to the Director and the Administrator semiannually for each six-month period. All semiannual reports shall be postmarked by the 30 th day following the end of each six-month period. [40 CFR 60.51 Da (j)]

(9) The Permittee may submit electronic quarterly reports for SO 2 in lieu of submitting the written reports required under Condition III.D.3.(f)(2). The format of each quarterly electronic report shall be coordinated with the permitting authority (ADEQ). The electronic report(s) shall be submitted no later than 30 days after the end of the calendar quarter and shall be accompanied by a certification statement from the Permittee, indicating whether compliance with the applicable emission standards and minimum data requirements of 40 CFR 60 Subpart Da was achieved during the reporting period. Before submitting reports in the electronic format, the Permittee shall coordinate with the Director to obtain their agreement to submit reports in this alternative format. [40 CFR 60.51 Da (k)]
(10) The Permittee shall prepare and submit to the Administrator for approval a unit-specific monitoringPermit #53418 61 of 131 August 15, 2012

Tucson Electric Power-SGS plan for each monitoring system, at least 45 days before commencing certification testing of the monitoring systems. The Permittee shall comply with the requirements in your plan. The plan must address the requirements of 40 CFR 60.49Da(s)(1) through (6). [40 CFR 60.49 Da (s)]
4. Testing

a. The Permittee shall perform performance tests to determine compliance with the SO 2 emission limitation in Condition III.D.1.a. These performance tests shall be performed in accordance with 40 CFR 60.8. [40 CFR 60.8 and A.A.C. R18-2-306.A.3.a]
b. Data from the CEMS for exhaust gas flow as required by Condition III.K.1, diluent concentration as required by Condition III.K.2, and SO 2 emissions as required by Condition III.D.3.a shall be used during the performance tests to demonstrate compliance. [40 CFR 60.50 Da (c)(5)]

c. The appropriate procedures in EPA Reference Method 19 shall be used to determine the SO 2 emission rate and the percent reduction achieved by the SO 2 emission control system. [40 CFR 60.50 Da (c)(3) and (c)(4)]
d. As an alternative to the procedures in Condition III.D.4.b, a combination of an “as-fired” fuel monitor and emission rates measured after the SO 2 emission control system, following the procedures in EPA Reference Method 19, may be used if the percent reduction is calculated using the average emission rate from the SO 2 emission control system and the average SO 2 input rate from the “as-fired” fuel analysis for 30 successive boiler operating days. [40 CFR 60.50 Da (c)(3)]

e. Compliance is based on the average emission rate for 30 successive operating days for each Unit 3 and Unit 4. Compliance is determined by calculating the arithmetic average of all hourly SO 2 emission rates for the 30 successive operating days, except for data obtained during startup, shutdown, or malfunction. [40 CFR 60.48Da(g)]

f. The percent of potential SO 2 emissions (%Ps) shall be computed using the equation set forth at 40 CFR 60.50Da(c)(1). [40 CFR 60.50 Da (c)(1)]
g. During each performance test for Unit 3, the Permittee shall obtain emission data from each of the continuous SO 2 and CO 2 emission monitoring systems for at least 18 hours in at least 22 out of 30 successive operating days. If this minimum data requirement is not met with a continuous monitoring system, thePermit #53418 62 of 131 August 15, 2012

Tucson Electric Power-SGS Director may use the procedures in EPA Reference Method 19, Section 12.7, to determine compliance. [40 CFR 60.49 Da (f)(1) and (h)]
h. During each performance test for Unit 4, the Permittee shall obtain emission data from each of the continuous SO 2 and CO 2 emission monitoring systems for at least 90 percent of all operating hours for each 30 successive boiler operating days. If this minimum data requirement is not met with a CEMS, the Director may use the procedures in EPA Reference Method 19, Section 12.7, to determine compliance. [40 CFR 60.49 Da (f)(2) and (h)]

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

Compliance with the Conditions of this Section shall be deemed compliance with 40 CFR 60.43Da (a)(1), (2), & (i)(1), 60.48 Da (c), (e), & (g), 60.49 Da (b), (b)(3), (f), & (h), 60.50 Da(c)(1), (3), (4), & (5), 60.51Da (a), (b), (c), (d), (e), (f), (h), (j), (k), and (s).

E. Nitrogen Oxides (NO x )

1. Emission Limitations/Standards

a. The Permittee shall not cause to be discharged into the atmosphere from Unit 3 stack, any gases which contain NO x (expressed as nitrogen dioxide) in excess of 200 nanograms per joule (1.6 pounds per megawatt-hour) gross energy output, based on a 30-day rolling average. [40 CFR 60.44 Da (d)(1)]
b. The Permittee shall not cause to be discharged into the atmosphere from Unit 4 stack, any gases which contain NO x (expressed as nitrogen dioxide) in excess of 130 nanograms per joule (1.0 pounds per megawatt-hour) gross energy output, based on a 30-day rolling average. [40 CFR 60.44 Da (e)(1)]

c. The NO x emission standard in Conditions III.E.1.a and b shall apply at all times except during periods of startup, shutdown, or malfunction (as defined in Condition #s I.D.8, 12, and 14). [40 CFR 60.48 Da (c)]

2. Air Pollution Control Requirements

At all times when Unit 3 or Unit 4 is i n operation, including periods of startup, shutdown, and malfunction as defined in Condition #s I.D.8, 12, and 14, the Permittee shall, to the extent practicable , maintain and operate the SCR system in a manner consistent with good air pollution control practice for minimizing NO x 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]Permit #53418 63 of 131 August 15, 2012

Tucson Electric Power-SGS 3. Monitoring/Recordkeeping/Reporting Requirements

a. Monitoring for NO x
(1) The Permittee shall calibrate , maintain, and operate continuous monitoring systems, and record the output of the systems, for measuring NO x emissions discharged to the atmosphere from Unit 3 and Unit 4. [40 CFR 60.49 Da (c)(1), 75.10(a), and A.A.C. R18-2-331.a.3.c] [Material Permit Conditions are def ined by underline and italics]
(2) The continuous monitoring system used to meet the requirements of 40 CFR Part 75 may be used to meet the requirements of 40 CFR Part 60, Subpart Da, §60.49Da(c)(1). The Permittee shall meet the requirements of 40 CFR 60.50Da. Data reported to meet the requirements of 40 CFR 60.50Da shall not include data substituted using the missing data procedures in Subpart D of 40 CFR Part 75, nor shall the data have been bias adjusted according to the procedures of 40 CFR Part 75. [40 CFR 60.49 Da (c)(2)]

b. Compliance Determination Requirements for NSPS NO x Emission Standard

For the purposes of demonstrating compliance with the NO x emission limitation in Condition III.E.1.a, the Permittee shall meet the following requirements:

(1) Emission data from the continuous flow monitoring systems, wattmeters, and continuous NO x emission monitoring systems required by Conditions III.K.1, III.K.4, and III.E.3.a respectively, shall be used to demonstrate compliance. [40 CFR 60.50 Da (d)(2)]

(2) For Unit 3, the Permittee shall obtain emission data from the continuous NO x emission monitoring systems for at least 18 hours in at least 22 out of each 30 successive operating days. [40 CFR 60.49 Da (f)(1)]

(3) For Unit 4, the Permittee shall obtain NO x emission data for at least 90 percent of all operating hours for each 30 successive boiler operating days. [40 CFR 60.49 Da (f)(2)]

(4) If this minimum data requirement cannot be met with a continuous monitoring system, the Permittee shall supplement the emission data in accordance with the following: [40 CFR 60.49 Da (f)]

(a) Data obtained from other monitoring systems approved by the Director, orPermit #53418 64 of 131 August 15, 2012

Tucson Electric Power-SGS (b) For supplementary NO x concentration data, data obtained from EPA Reference Method 7 or 7A or 7C or 7E, in accordance with the provisions of 40 CFR 60. 49Da (h).

(5) The NO x emission rate shall be calculated by multiplying the average hourly NO x output concentration by the average hourly flow rate and divided by the average hourly gross electrical output. [40 CFR 60.48 Da (i)]
(6) Compliance with the NO x emission limitation under Condition III.E.1.a and b is based on the average emission rate for 30 successive operating days for Unit 3 and Unit 4. Compliance is determined by calculating the arithmetic average of all hourly NO x emission rates for the 30 successive operating days, except for data obtained during startup, shutdown, or malfunction (as defined in Condition #s I.D.8, 12, and 14). A separate performance test is completed at the end of each operating day and a new 30-day average nitrogen oxides emission rate is calculated to show compliance with the emission standard. [40 CFR 60.48 Da (e) and (g)]
c. NSPS Requirements for Continuous Monitoring Systems

The continuous monitoring systems for NO x emissions as required by Condition III.E.3.a (except as provided by Condition III.E.3.a.(2)) shall meet the following requirements:

(1) Calibration requirements at 40 CFR 60.13(d)

(2) Operational requirements at 40 CFR 60.13(e)

(3) Performance Specifications at 40 CFR Part 60, Appendix B

(4) Quality Assurance Procedures at 40 CFR Part 60, Appendix F

(5) Notification and recordkeeping requirements at 40 CFR 60.7.

d. Acid Rain Program Requirements for Continuous Monitoring Systems

The continuous monitoring systems for NO x emissions as required by Condition III.E.3.a shall meet all applicable requirements at 40 CFR Part 75. This shall include, but shall not be limited to, the following requirements:Permit #53418 65 of 131 August 15, 2012

Tucson Electric Power-SGS (1) 40 CFR Part 75, Appendix A, “Specification and Test Procedures”.

(2) 40 CFR Part 75, Appendix B, “Quality Assurance and Quality Control Procedure”.

(3) Equipment performance requirements at 40 CFR 75.10(b).

(4) Hourly operating requirements at 40 CFR 75.10(d).

(5) Data reduction requirements at 40 CFR 75.10(d)(1).

(6) Missing data substitution requirements at 40 CFR 75.10(d)(3) and 40 CFR Part 75, Subpart D.

(7) Certification and recertification requirements at 40 CFR 75.20.

e. The Permittee shall comply with all applicable recordkeeping and reporting requirements of 40 CFR Part 75, Subparts F and G, respectively.

f. NSPS Reporting Requirements

(1) The performance test data from the performance evaluation of the continuous monitors are submitted to the Director and the Administrator. [40 CFR 60.51Da (a)]
(2) The following information is reported to the Director and the Administrator for each 24-hour period. [40 CFR 60.51 Da (b)]

(a) Calendar date

(b) The average NO x emission rates (ng/J or lb/million Btu) for each 30 successive boiler operating days, ending with the last 30-dayperiod in the quarter; reasons for noncompliance with the standard; and, description of corrective actions taken.

(c) Identification of the boiler operating days for which pollutant or diluent data have not been obtained by an approved method for at least 18 hours of operation of the facility; justification for not obtaining sufficient data; and description of corrective actions taken.

(d) Identification of the times when emissions data have been excluded from the calculation ofPermit #53418 66 of 131 August 15, 2012

Tucson Electric Power-SGS average emission rates because of startup, shutdown, malfunction, or other reasons, and justification for excluding data for reasons other than startup, shutdown, malfunction (as defined in Condition #s I.D.8, 12, and 14), or emergency conditions.

(e) Identification of “F” factor used for calculations, method of determination, and type of fuel combusted.

(f) Identification of times when hourly averages have been obtained based on manual sampling methods.

(g) Identification of the times when the pollutant concentration exceeded full span of the continuous monitoring system.

(h) Description of any modifications to the continuous monitoring system which could affect the ability of the continuous monitoring system to comply with Performance Specifications 2 or 3.

(3) If the minimum quantity of emission data as required by 40 CFR 60.49Da is not obtained for any 30 successive boiler operating days, the following information obtained under the requirements of §60.48a(h) is reported to the Department and the Administrator for that 30 day period: [40 CFR 60.51 Da (c)]

(a) The number of hourly averages available for outlet emission rates (no) and inlet emission rates (ni)

(b) The standard deviation of hourly averages for outlet emission rates (so) and inlet emission rates (si) as applicable.

(c) The lower confidence limit for the mean outlet emission rate (Eo*) and the upper confidence limit for the mean inlet emission rate (Ei*) as applicable.

(d) The applicable combustion concentration.

(e) The ratio of the upper confidence limit for the mean outlet emission rate (Eo*) and the allowable emission rate (Estd) as applicable.Permit #53418 67 of 131 August 15, 2012

Tucson Electric Power-SGS (4) For any periods for which NO x emissions data is not available, the Permittee shall submit a signed statement indicating if any changes were made in operation of the emission control system during the period of data unavailability. Operations of the control system and Unit 3 and 4 during periods of data unavailability are to be compared with operation of the control system and affected facility before and following the period of data unavailability. [40 CFR 60.51 Da (f)]

(5) The Permittee shall submit a signed statement indicating whether: [40 CFR 60.51 Da (h)]

(a) The required continuous monitoring system calibration, span, and drift checks or other periodic audits have or have not been performed as specified.

(b) The data used to show compliance was or was not obtained in accordance with approved methods and procedures of 40 CFR 60Da and is representative of plant performance.

(c) The minimum data requirements have or have not been met; or, the minimum data requirements have not been met for errors that were unavoidable.

(d) Compliance with the standards has or has not been achieved during the reporting period.

(6) The Permittee shall submit the written reports required under this section and 40 CFR 60 Subpart A to the Director and the Administrator semiannually for each six-month period. All semiannual reports shall be postmarked by the 30 th day following the end of each six-month period. [40 CFR 60.51 Da (j)]

(7) The Permittee may submit electronic quarterly reports for NO x in lieu of submitting the written reports required under Condition III.E.3.(f)(2). The format of each quarterly electronic report shall be coordinated with the Director. The electronic report(s) shall be submitted no later than 30 days after the end of the calendar quarter and shall be accompanied by a certification statement from the Permittee, indicating whether compliance with the applicable emission standards and minimum data requirements of 40 CFR 60 Subpart Da was achieved during the reporting period. Before submitting reports in the electronic format, the Permittee shall coordinate withPermit #53418 68 of 131 August 15, 2012

Tucson Electric Power-SGS the Director to obtain their agreement to submit reports in this alternative format. [40 CFR 60.51 Da (k)]
(8) The Permittee shall prepare and submit to the Administrator for approval a unit-specific monitoring plan for each monitoring system, at least 45 days before commencing certification testing of the monitoring systems. The owner or operator shall comply with the requirements in your plan. The plan must address the requirements of 40 CFR 60.49Da(s)(1) through (6). [40 CFR 60.49 Da (s)] 4. Testing

a. The Permittee shall perform performance tests to determine compliance with the NO x emission limitation in Condition III.E.1.a and b. These performance tests shall be performed in accordance with 40 CFR 60.8. [40 CFR 60.8 and A.A.C. R18-2-306.A.3.a]
b. Data from the CEMS for exhaust gas flow as required by Condition III.K.1, wattmeters as required by Condition III.K.4, and NO x emissions as required by Condition III.E.3.a shall be used during the performance tests to demonstrate compliance. [40 CFR 60.50 Da (d)(2)]

c. The NO x emission rate shall be calculated by multiplying the average hourly NO x output concentration by the average hourly flow rate and divided by the average hourly gross electrical output. [40 CFR 60.48 Da (i)]

d. Compliance is based on the average emission rate for 30 successive operating days for each Unit 3 and Unit 4. Compliance is determined by calculating the arithmetic average of all hourly NO x emission rates for the 30 successive operating days, except for data obtained during startup, shutdown, or malfunction. [40 CFR 60.48 Da (g)]

e. During each performance test, for Unit 3, the Permittee shall obtain emission data from the continuous NO x emission monitoring system for at least 18 hours in at least 22 out of 30 successive operating days. For Unit 4, the Permittee shall obtain emission data for at least 90 percent of all operating hours for each 30 successive boiler operating days. If this minimum data requirement is not met with a continuous monitoring system, the Director may use the procedures in EPA Reference Method 19, Section 12.7, to determine compliance. [40 CFR 60.49 Da (f) and (h)]

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

Compliance with the Conditions of this Section shall be deemed compliance with 40 CFR 60.44Da (d)(1) & (e)(1), 60.48 Da (c), (e), (g),Permit #53418 69 of 131 August 15, 2012

Tucson Electric Power-SGS & (i), 60.49 Da (c)(1) & (2), (e), & (g), 60.50 Da (d)(2), 60.51 Da (a), (b), (c), (f), (h), (j), (k), and (s).

F. Carbon Monoxide (CO)

1. Emission Limitations/Standard

a. The Permittee shall not cause to be discharged into the atmosphere from the stacks of Unit 3 or Unit 4 any gases which contain CO in excess of 0.15 lb per million Btu heat input derived from combustion of fuel, based on a 30-day rolling
average. [A.A.C. R18-2-406.A.4]

b. The CO emission standard in Condition III.F.1.a shall apply at all times except during periods of startup, shutdown, or malfunction (as defined in Condition #s I.D.8, 12, and 14). [A.A.C. R18-2-406.A.4]
2. Monitoring/Recordkeeping/Reporting Requirements

a. Monitoring for CO

(1) The Permittee shall, calibrate , maintain, and operate CEMS, and record the output of the systems, for measuring CO emissions discharged to the atmosphere from Unit 3 and Unit 4. [A.A.C. R18-2-331.A.3.c and -306.A.3.c] [Material Permit Conditions are defined by underline and italics]

(2) The CEMS for CO shall meet the following requirements: [A.A.C. R18-2-331.A.3.c and -306.A.3.c] [Material Permit Conditions are defined by underline and italics]
(a) Calibration requirements at 40 CFR 60.13(d).

(b) Operational requirements at 40 CFR 60.13(e).

(c) Performance Specifications at 40 CFR Part 60, Appendix B.

(d) Quality Assurance Procedures at 40 CFR Part 60, Appendix F.

b. Compliance Determination Requirements for CO Emission Standard

The Permittee shall use the following procedures to demonstrate compliance with the CO emission limitation in Condition III.F.1.a. [A.A.C. R18-2-306.A.3.c]

(1) The Permittee shall use data from the continuous flowPermit #53418 70 of 131 August 15, 2012

Tucson Electric Power-SGS monitoring system, diluent CO 2 or O 2 monitoring systems, and CO emission monitoring systems as required by Conditions III.K.1, III.K.2, and III.F.2.a respectively.

(2) The requirements of Condition III.F.2.b shall apply only to Unit 3 and Unit 4 and shall apply separately to Unit 3 and Unit 4.

(3) Compliance with the CO emission limitation under Condition III.F.1.a is based on the average emission rate for 30 successive calendar days for Unit 3 and Unit 4. Compliance is determined by calculating the arithmetic average of all hourly CO emission rates for the 30 successive calendar days, except for data obtained during startup, shutdown (as defined in Condition #s I.D.8, and 12), or emergency conditions. A separate performance test is completed at the end of each calendar day, and a new 30-day average CO 2 emission rate is calculated to show compliance with the emission standard.

(4) Each calendar day, for which the 30-day rolling average CO emission rate exceeds the CO emission limitation in Condition III.F.1.a, shall constitute a period of excess emissions.

(5) For each continuous monitoring system for CO, the Permittee shall submit a Quality Assurance/Quality Control Plan to the Director at least 30 days prior to the start-up of the monitoring system. When approved by the Director, this plan shall be implemented.

3. Testing

a. The Permittee shall perform annual performance tests to determine compliance with the CO emission limitation in Condition III.F.1.a. [A.A.C. R18-2-406.A.4]

b. Data from the continuous monitoring systems for exhaust gas flow as required by Condition III.K.1, diluent concentration as required by Condition III.K.3, and CO emissions as required by Condition III.F.2.a shall be used during the performance tests to demonstrate compliance. [A.A.C. R18-2-406.A.4]

c. The appropriate procedures in EPA Reference Method 19 shall be used to determine the CO emission rate. As Method 19 does not provide conversion factors for CO, a conversion factor of 7.27x10 -8 shall be used to convert parts per million (ppm) to pounds per standard cubic foot (lb/scf). [A.A.C. R18-2-406.A.4]Permit #53418 71 of 131 August 15, 2012

Tucson Electric Power-SGS G. Volatile Organic Compounds (VOC)

1. Emission Limitations/Standards

a. The Permittee shall not cause to be discharged into the atmosphere from the stacks of Unit 3 or Unit 4 any gases which contains VOCs, expressed as propane, in excess of 0.06 lb per ton of coal combusted. Compliance with this emission limit shall be determined using a three-hour averaging period. [A.A.C. R18-2-406.A.4]
b. The VOCs emission standard in Condition III.G.1.a shall apply at all times except during periods of startup, shutdown, or malfunction (Condition #s I.D.8, 12, and 14). [A.A.C. R18-2-406.A.4]
2. Testing

a. The Permittee shall perform performance tests, within 12 months of issuance of this permit, to determine compliance with the VOC emission limitation in Condition III.G.1.a. [A.A.C. R18-2-306.A.3.c]

b. If the results of any performance test show that the VOC emissions are less than 50 percent of the specified emission limitation in Condition III.G.1.a, no additional testing shall be required for that steam generating unit during the term of this permit. If the results of the performance test show that the VOC emissions are greater than or equal to 50 percent of the specified emission limitation in Condition III.G.1.a, annual testing shall be required for that steam generating unit.

c. The performance test for VOCs shall be performed using EPA Reference Method 18 or 25A. [A.A.C. R18-2-406.A.4]

H. Hydrogen Fluoride (HF)

1. Emission Limitations/Standards [A.A.C. R18-2-302.D and -406.A.4]
a. The Permittee shall not cause to be discharged into the atmosphere from the stack of Unit 3 or Unit 4 any gases which contain HF in excess of 0.00044 lb per million Btu heat input derived from combustion of fuel. Compliance with this emission limit shall be determined using a three-hour averaging period.

b. The HF emission standard in Condition III.H.1.a shall apply at all times except during periods of startup, shutdown, or malfunction (as defined in Condition #s I.D.8, 12, and 14).Permit #53418 72 of 131 August 15, 2012

Tucson Electric Power-SGS 2. Testing [A.A.C. R18-2-302.D, -312, and 406.A.4]

a. The Permittee shall perform performance tests, within 12 months of issuance of this permit, to determine compliance with the HF emission limitation in Condition III.H.1.a.

b. If the results of any performance te st show that the HF emissions are less than 50 percent of the specified emission limitation in Condition III.H.1.a, no additional testing shall be required for that steam generating unit during the term of this permit. If the results of the performance test show that the HF emissions are greater than or equal to 50 percent of the specified emission limitation in Condition III.H.1.a, annual testing shall be required for that steam generating unit.

c. The performance test for HF shall be performed using EPA Reference Method 26A.

I. Lead (Pb)

1. Emission Limitations/Standards

The Permittee shall not cause to be discharged into the atmosphere from the stacks of Unit 3 or Unit 4 any gases which contain Pb in excess of 0.000016 lb per million Btu heat input derived from combustion of fuel.Compliance with this emission limit shall be determined using a threehour averaging period. [A.A.C. R18-2-306.02]

2. Testing

a. The Permittee shall perform performance tests, within 12 months of issuance of this permit, to determine compliance with the Pb emission limitation in Condition III.I.1.a.

b. If the results of any performance test show that the Pb emissions are less than 50 percent of the specified emission limitation in Condition III.I.1.a, no additional testing shall be required for that steam generating unit during the term of this permit. If the results of the performance test show that the Pb emissions are greater than or equal to 50 percent of the specified emission limitation in Condition III.I.1.a, annual testing shall be required for that steam generating unit.

c. Each performance test for lead shall be performed using EPA Reference Method 12 or 29. [A.A.C. R18-2-306.A.2]Permit #53418 73 of 131 August 15, 2012

Tucson Electric Power-SGS J Mercury Emission Standard

1. Emission Limitations/Standards

a. The Permittee shall not cause to be discharged into the atmosphere from the stack of Unit 3 and Unit 4 any gases which contain mercury in excess of 0.0000069 lb per million Btu heat input derived from combustion of fuel. Compliance with this emission limit shall be determined using a three-hour averaging period. [40 CFR 63.43(g)(1) and A.A.C. R18-2-302.D]

b. The mercury emission standard in Condition III.J.1.a shall apply at all times except during periods of startup, shutdown, or malfunction (as defined in Condition #s I.D.8, 12, and 14). [40 CFR 63.6 (f) and A.A.C. R18-2-302.D]

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

a. The Permittee shall perform annual performance tests on Unit 3 and Unit 4 to determine compliance with the mercury emission limitation in Condition III.J.1.a. [40 CFR 63.43 (g)(2)(iv)]
b. Each performance test for mercury shall be performed using EPA Reference Method 29 or Method 30B. [40 CFR 63.7(e)]
c. The Permittee shall develop and submit to the Director a sitespecific test plan in accordance with the provisions of 40 CFR 63.7(b) at least 60 days prior to each scheduled performance test required by Condition III.J.2.a. [40 CFR 63.7(b)]
K. Additional Monitoring, Recordkeeping, and Reporting Requirements

1. Monitoring of Flow

a. The Permittee shall certify , maintain, and operate continuous flow monitoring systems, and record the output of the systems, for measuring the flow of exhaust gases discharged to the atmosphere from Unit 3 and Unit 4. [40 CFR 60.49 Da (a)(l), 75.10(a), and A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are defined by underline and italics]
b. Data from continuous flow monitoring systems certified according to the requirements of 40 CFR 75.20, meeting the applicable quality control and quality assurance requirements of 40 CFR 75.21, and validated according to 40 CFR 75.23, may be used to satisfy the requirements of 40 CFR 60.49Da(l). [40 CFR 60.49 Da (m)]
2. Monitoring for CO 2
The Permittee shall, calibrate , maintain, and operate a continuous monitoring system, and record the output of the system, for measuringPermit #53418 74 of 131 August 15, 2012

Tucson Electric Power-SGS CO 2 emissions discharged to the atmosphere from Unit 3 and Unit 4. [40 CFR 75.10(a) and A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are defined by underline and italics]
3. Monitoring for Diluent Concentration

a. The Permittee shall, calibrate , maintain, and operate continuous monitoring systems, and record the output of the systems, for measuring diluent CO 2 or O 2 concentration in the exhaust gas streams from Unit 3 and Unit 4 . The monitoring systems shall measure CO 2 or O 2 concentration at both the inlet and outlet of the SO 2 control device unless the Permittee elects to monitor for inlet SO 2 using the alternative method described in Condition III.D.3.a.(2). [40 CFR 60.49 Da (d) and A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are defined by underline and italics]

b. The CO 2 continuous monitoring system required by Condition III.K.2 may be used to satisfy the requirement for monitoring of diluent concentration at the outlet of the SO 2 control device, provided that it meets the applicable siting requirements of 40 CFR Part 60, Appendix B. [40 CFR 60.49 Da (d)]

4. Monitoring of Electrical Output

The Permittee shall calibrate , maintain, and operate the wattmeters,utilize the wattmeters to measure the gross electrical output in megawatthours from Unit 3 and Unit 4 on a continuous basis, and record the output of the wattmeters. [40 CFR 60.49 Da (k) and A.A.C. R18-2-331.A.3.c] [Material Permit Conditions are defined by underline and italics]
5. Measurement of Heat Input

The Permittee shall determine and record the heat input to Unit 3 and Unit 4 for every hour or part of an hour any fuel is combusted following the procedures in 40 CFR Part 75, Appendix F. [40 CFR 60.49 Da (d) and 75.10(a)]
6. NSPS Requirements for Continuous Monitoring Systems

The continuous monitoring systems for exhaust gas flow required by Condition III.K.1 (except as provided by Condition III.K.1.b) and diluent concentration required by Condition III.K.3 shall meet the following requirements:

a. Calibration requirements at 40 CFR 60.13(d)

b. Operational requirements at 40 CFR 60.13(e)

c. Performance Specifications at 40 CFR Part 60, Appendix B

d. Quality Assurance Procedures at 40 CFR Part 60, Appendix FPermit #53418 75 of 131 August 15, 2012

Tucson Electric Power-SGS 7. Acid Rain Program Requirements for Continuous Monitoring Systems

The continuous monitoring systems for exhaust gas flow required by Condition III.K.1 and CO 2 emissions required by Condition III.K.2 shall meet all applicable requirements at 40 CFR Part 75. This shall include, but not be limited to, the following requirements:

a. 40 CFR Part 75, Appendix A, “Specification and Test Procedures.”

b. 40 CFR Part 75, Appendix B, “Quality Assurance and Quality Control Procedure.”

c. Equipment performance requirements at 40 CFR 75.10(b).

d. Hourly operating requirements at 40 CFR 75.10(d).

e. Data reduction requirements at 40 CFR 75.10(d)(1).

f. Missing data substitution requirements at 40 CFR 75.10(d)(3) and 40 CFR Part 75, Subpart D.

g. Certification and recertification requirements at 40 CFR 75.20.

8. The Permittee shall comply with all applicable recordkeeping and reporting requirements of 40 CFR Part 75, Subparts F and G, respectively.

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

Compliance with the Conditions of this Section shall be deemed compliance with 40 CFR 60.49 Da (a)(1), (d), (k), and (m).

IV. UNIT 1, UNIT 2, UNIT 3, AND UNIT 4 (P1, P2, P3, AND P4) (COMBINED LIMITS)

A. Applicability

This Section applies to Unit 1, Unit 2, Unit 3, and Unit 4 as described in Condition I.D.18 and Equipment List, Attachment “C”.

B. Sulfur Dioxide (SO 2 )

1. Emission Limitations/Standards [A.A.C. R18-2-406.H and 40 CFR 70.8(c)(4)]

a. The Permittee shall not cause to be discharged into the atmosphere from the stacks of Unit 1, Unit 2, Unit 3, and Unit 4, in total, any gases which contain SO 2 in excess of 8,448 lbs perPermit #53418 76 of 131 August 15, 2012

Tucson Electric Power-SGS hour. Compliance with this emission limit shall be determined on a rolling 3-hour average basis.

b. Total emissions of SO 2 from Unit 1, Unit 2, Unit 3, and Unit 4 shall not exceed 10,800 tons per year.

c. Compliance with the emission limit in Condition IV.B.1.b shall be determined on both a calendar-year total and a 12-month rolling total basis.

2. Monitoring/Recordkeeping/Reporting Requirements

a. The Permittee shall use the following procedure to demonstrate compliance with the hourly SO 2 emission limitation in Condition IV.B.1.a: [A.A.C. R18-2-306.A.3.c]

(1) The Permittee shall use the data from the continuous SO 2 emission monitoring systems for Unit 1 and Unit 2 as required by Condition II.D.3, the continuous flow monitoring systems for Unit 1 and Unit 2 as required by 40 CFR Part 75, and the flow monitoring systems and continuous SO 2 emission monitoring systems for Unit 3 and Unit 4 as required by Condition #s III.K.1 and III.D.3.a respectively.

(2) For each one-hour period, the Permittee shall record the hourly mass emissions (in lbs) for each steam generating unit that operated during the hour.

(3) For each one-hour period, the Permittee shall calculate and record the three-hour average mass emission rate for each steam generating unit that operated during the hour. The three-hour average mass emission rate shall be calculated as the sum of the mass emissions for the subject hour, plus the mass emissions for the two preceding hours, divided by three. The three-hour average mass emission rate shall be expressed in lbs per hour.

(4) For each one-hour period, the Permittee shall calculate and record the combined three-hour average mass emission rate for Unit 1, Unit 2, Unit 3, and Unit 4. The combined three-hour average mass emission rate shall be calculated as the sum of the three-hour average mass emission rates for all steam generating units that operated during the three-hour period. The combined three-hour average mass emission rate shall be expressed in lbs per hour.

(5) Each one-hour period for which the combined three-hourPermit #53418 77 of 131 August 15, 2012

Tucson Electric Power-SGS average mass emission rate calculated in Condition IV.B.2.a(4) exceeds the SO 2 emission limitation in Condition IV.B.1.a shall constitute a period of excess emissions.

b. The Permittee shall use the following procedure to demonstrate compliance with the yearly SO 2 emission limitations in Condition IV.B.1.b. [A.A.C. R18-2-304.E.9]

(1) For each calendar month, the Permittee shall calculate and record the monthly mass emissions for each steam generating unit that operated during the calendar month. The monthly mass emissions shall be calculated as the sum of all hourly mass emissions recorded during the month pursuant to Condition IV.B.2.a(2) and shall be expressed in tons.

(2) For each calendar month, the Permittee shall calculate and record the combined monthly mass emissions for Unit 1, Unit 2, Unit 3, and Unit 4. The combined monthly mass emissions shall be calculated as the sum of the monthly mass emissions for all steam generating units that operated during the calendar month. The combined monthly mass emissions shall be expressed in
tons.

(3) For each calendar month, the Permittee shall calculate and record the combined annual mass emissions for Unit 1, Unit 2, Unit 3, and Unit 4. The combined annual mass emissions shall be calculated as the sum of the combined monthly mass emissions for the subject month, plus the combined monthly mass emissions for the eleven preceding months. The combined annual mass emissions shall be expressed in tons.

(4) The data recorded under Conditions III.B.2.b (1) to (3) shall be available for inspection by the fifth working day of the month following the month for which the calculation is being made.

(5) For each continuous monitoring system for SO 2 emissions, the Permittee shall submit a Quality Assurance/Quality Control Plan to the Director and the Administrator at least 30 days prior to the start-up of the monitoring system. Each Plan shall include procedures for dealing with data gaps using the procedures contained in 40 CFR Part 75, Subpart D. When approved by the Director, this plan shall be implemented.Permit #53418 78 of 131 August 15, 2012

Tucson Electric Power-SGS (6) Combined mass emissions that exceed the rolling 12- month SO 2 emission limitation in Condition IV.B.1.b shall constitute a violation for each day of the preceding month for each electric generating unit in operation on that day.

(7) Combined mass emissions that exceed the calendar-year sulfur dioxide emission limitation in Condition IV.B.1.b shall constitute a violation for each day of the preceding calendar year for each electric generating unit in operation on that day.

(8) A violation under Conditions IV.B.2.b (6) and (7) that occurs on the same day at the same unit shall count as a single violation.

C. Nitrogen Oxides (NO x )

1. Emission Limitations/Standards [A.A.C. R18-2-406.H and 40 CFR 70.8(c)(4)]

a. Total emission of NO x from Unit 1, Unit 2, Unit 3, and Unit 4 shall not exceed 9,600 tons per year.

b. Compliance with the emission limit in Condition IV.C.1.a shall be determined on both a calendar-year total and a 12-month rolling total basis.

2. Monitoring/Recordkeeping/Reporting Requirements

The Permittee shall use the following procedure to demonstrate compliance with the NO x emission limitation in Condition IV.C.1.a: [A.A.C. R18-2-306.A.3.c]

a. The Permittee shall use the data from the continuous NO x emission monitoring systems for Unit 1 and Unit 2 as required by Condition II.F.2, the continuous flow monitoring systems for Unit 1 and Unit 2 as required by 40 CFR Part 75, and the flow monitoring systems and continuous nitrogen oxides emission monitoring systems for Unit 3 and Unit 4 as required by Conditions III.K.1 and III.F.3.

b. For each calendar month, the Permittee shall calculate and record the monthly mass emissions for each steam generating unit that operated during the calendar month. The monthly mass emissions shall be expressed in tons.

c. For each calendar month, the Permittee shall calculate and record the combined monthly mass emissions for Unit 1, Unit 2, Unit 3, and Unit 4. The combined monthly mass emissions shall be calculated as the sum of the monthly mass emissions for allPermit #53418 79 of 131 August 15, 2012

Tucson Electric Power-SGS steam generating units that operated during the calendar month. The combined monthly mass emissions shall be expressed in
tons.

d. For each calendar month, the Permittee shall calculate and record the combined annual mass emissions for Unit 1, Unit 2, Unit 3, and Unit 4. The combined annual mass emissions shall be calculated as the sum of the combined monthly mass emissions for the subject month, plus the combined monthly mass emissions for the eleven preceding months. The combined annual mass emissions shall be expressed in tons.

e. The data recorded under Condition #s IV.C.2.b and d shall be available for inspection by the fifth working day of the month following the month for which the calculation is being made.

f. For each continuous monitoring system for NO x emissions, the Permittee shall submit a Quality Assurance/Quality Control Plan to the Director at least 30 days prior to the start-up of the monitoring system. Each plan shall include procedures for dealing with data gaps using the procedures contained in 40 CFR Part 75, Subpart D. When approved by the Director, this plan shall be implemented.

g. Combined mass emissions that exceed the rolling 12-month NO x emission limitation in Condition IV.C.1.a shall constitute a violation for each day of the preceding month for each electric generating unit in operation on that day.

h. Combined mass emissions that exceed the calendar-year NO x emission limitation in Condition IV.C.1.a shall constitute a violation for each day of the preceding calendar year for each electric generating unit in operation on that day.

i. A violation under Conditions IV.C.2.g and h that occurs on the same day at the same unit shall count as a single violation.

D. Sulfuric Acid Mist (H 2 SO 4 )

1. Emission Limitations/Standards [A.A.C. R18-2-306.02]
The Permittee shall not cause to be discharged into the atmosphere from the stacks of Unit 1, Unit 2, Unit 3, and Unit 4, in total, any gases which contain H 2 SO 4 mist in excess of 211 tons per year. Compliance with this emission cap shall be determined on a 12-month rolling total basis.

2. Monitoring/Recordkeeping/Reporting Requirements

a. Compliance Determination Requirements for H 2 SO 4 Mist Emission CapPermit #53418 80 of 131 August 15, 2012

Tucson Electric Power-SGS The Permittee shall use the following procedures to demonstrate compliance with the H 2 SO 4 mist emission limitation in Condition IV.D.1: [A.A.C. R18-2-306.A.3.c]

(1) For each calendar month, the Permittee shall calculate and record the monthly mass emissions of H 2 SO 4 mist for each steam generating unit that operated during the calendar month. The monthly mass emissions of H 2 SO 4 mist for each unit shall be calculated as the product of the SO 2 monthly mass emissions for that unit as calculated under Condition IV.B.2.b and the sulfur compound emission ratio for that unit. The monthly mass emissions of H 2 SO 4 mist for each steam generating unit shall be expressed in tons.

(a) The sulfur compound emission ratio for Unit 1 and Unit 2 is 0.01127.

(b) The sulfur compound emission ratio for Unit 3 is 0.0408 and for Unit 4 is 0.025.

(2) For each calendar month, the Permittee shall calculate and record the combined monthly mass emissions of sulfuric acid mist for Unit 1, Unit 2, Unit 3, and Unit 4. The combined monthly mass emissions of H 2 SO 4 shall be calculated as the sum of the monthly mass emissions of H 2 SO 4 mist for all steam generating units that operated during the calendar month. The combined monthly mass emissions of H 2 SO 4 mist shall be expressed in tons.

(3) For each calendar month, the Permittee shall calculate and record the combined annual mass emissions of H 2 SO 4 mist for Unit 1, Unit 2, Unit 3, and Unit 4. The combined annual mass emissions of H 2 SO 4 mist shall be calculated as the sum of the combined monthly mass emissions of H 2 SO 4 mist for the subject month, plus the combined monthly mass emissions of H 2 SO 4 mist for the eleven preceding months. The combined annual mass emissions of H 2 SO 4 mist shall be expressed in tons.

(4) The data recorded under Conditions IV.D.2.a (1) through (3) shall be available for inspection by the fifth working day of the month following the month for which the calculation is being made.

(5) Each calendar month for which the combined annual mass emissions of H 2 SO 4 mist exceeds the H 2 SO 4 mist emission limitation in Condition IV.D.1 shall constitute a period of excess emissions.Permit #53418 81 of 131 August 15, 2012

Tucson Electric Power-SGS E. Mercury [State Enforceable Only] [Consent Order #A-16-09]

1. The State mercury standard set forth in A.A.C. R18-2-734 shall not apply to the Permittee until December 31, 2016.

2. The Permittee shall implement the Operation and Maintenance (O&M) plan, designed to achieve a minimum of 50 percent reduction of total inlet mercury from all Electric Utility Steam Generating Units (EUSGUs), specified in Condition IV.E.3, until December 31, 2015. Compliance with this O&M plan does not require any mercury emission limitations or any commitments to achieve any mercury emission reductions.

3. Mercury Control Strategy O&M Plan

a. The PM emissions CAM plan outlined in Condition II.C.3.b shall be followed to assure proper operation and maintenance of the fabric filters for control of mercury emissions from Unit 1 and Unit 2.

b. The PM emissions CAM plan outlined in Condition III.C.3.b shall be followed to assure proper operation and maintenance of the fabric filters for control of mercury emissions from Unit 3 and Unit 4.

c. The SO 2 emissions monitoring requirements outlined in Condition III.D.3 shall be followed to assure proper operation and maintenance of the spray dryer absorbers for control of mercury emissions from Unit 3 and Unit 4.

d. The NO x emissions monitoring requirements outlined in Condition III.E.3 shall be followed to assure proper operation and maintenance of the selective catalytic reduction system for control of mercury emissions from Unit 3 and Unit 4.

4. The Permittee shall be allowed to operate, test, and evaluate the performance of the activated carbon injection system (ACI) installed at Unit 4.

5. Monitoring/Recordkeeping/Reporting Requirements

a. The Permittee shall perform annual mercury stack tests for all boiler units during the time period defined in Condition IV.E.2. For Unit 3 and Unit 4 testing completed under Condition III.J.2 satisfies this annual testing requirement. Stack tests shall be performed using EPA Method 29 or other EPA-approved methods. The results shall be reported as outlet mercury rate in lb/MMBtu.Permit #53418 82 of 131 August 15, 2012

Tucson Electric Power-SGS b. The Permittee shall conduct mercury and heating value analysis at least once per month for each coal type to determine monthly inlet mercury in lb/MMBtu. For purposes of this condition, inlet mercury means the average concentration of mercury in the coal burned at SGS as determined by ASTM methods, EPA approved methods or any alternative method approved by the Director. Coal sample analysis provided by the coal supplier may be utilized for this purpose.

c. The Permittee shall determine and record for each calendar year the facility-wide annual percent reduction of mercury emissions, using the inlet and outlet mercury data obtained from Conditions IV.E.5.a and b.

d. The Permittee shall submit annual reports to the Director containing the results of Conditions IV.E.5.a through c. The report shall be submitted by February 15 th and shall contain the results for the preceding year.

6. The Permittee shall submit an application for a significant permit revision required by A.A.C. R18-2-734(F) by no later than January 1, 2014, and shall include the following elements in the application:

a. The State Mercury Standard and any amendments adopted by ADEQ to ensure that the State Mercury Standard is not incompatible with a MACT standard promulgated by EPA.

b. A control strategy for meeting the State Mercury Standard and any amendments adopted by ADEQ to ensure that the State Mercury Standard is not incompatible with a MACT standard promulgated by EPA.

c. A demonstration that the control strategy is designed to meet the State Mercury Standard and any amendments adopted by ADEQ to ensure that the State Mercury Standard is not incompatible with a MACT standard promulgated by EPA.

d. A proposal to comply with the State Mercury Standard by December 31, 2016, except as provided in A.A.C. R18-2- 734(H), under the following conditions;

(1) For the purposes of applying the exception established in A.A.C. R18-2-734(H), each date specified in that provision shall be increased by three calendar years.

(2) The exception in A.A.C. R18-2-734(G) shall not apply.Permit #53418 83 of 131 August 15, 2012

Tucson Electric Power-SGS V. AUXILIARY BOILER (P5)

A. Applicability

This Section applies to the Auxiliary Boiler listed in Equipment List, Attachment “C”.

B. Operating Limitations

1. Fuel Limitations

a. The Permittee shall burn only No. 2 diesel fuel or bio-diesel in the auxiliary boiler. [A.A.C. R18-2-306.A.2]

b. The Permittee shall not use high sulfur oil (fuel sulfur content  0.9 percent 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 contingency plans to insure that the SO 2 ambient air quality standards set forth in A.A.C. R18-2-202 will not be violated. [A.A.C. R18-2-724.G]

2. Monitoring/Recordkeeping/Reporting Requirements [A.A.C.R18-2-306.A.4]

a. The Permittee shall record the dates and hours of operation of the auxiliary boiler.

b. The Permittee shall submit the dates and hours of operation of the auxiliary boiler for the period of each compliance certification.

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R-18-724.G.

C. Particulate Matter (PM/PM 10 ) and Opacity

1. Emission Limitations/Standards

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

The Permittee shall not cause, allow or permit to be emitted into the atmosphere from the auxiliary boiler, smoke which exceeds 15 percent opacity.

b. Particulate Matter [A.A.C. R18-2-724.C.1]

The Permittee shall not cause, allow or permit the emission of PM, caused by the combustion of fuel, from the auxiliary boilerPermit #53418 84 of 131 August 15, 2012

Tucson Electric Power-SGS in excess of the amount 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.

2. Monitoring/Recordkeeping/Reporting Requirements

a. Visible Emissions

(1) For every 120 hours of continuous operation, a certified EPA Reference Method 9 observer shall conduct a survey of visible emissions emanating from the stack of the auxiliary boiler. If the opacity of the emissions observed appears to exceed the standard, the observer shall conduct a certified EPA Reference Method 9 observation. The Permittee shall keep records of the survey and any EPA Reference Method 9 observations 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 observation shows a Method 9 opacity reading in excess of 15 percent, the Permittee shall initiate appropriate corrective action to reduce the opacity below 15 percent. The Permittee shall keep a record of the corrective action performed. [A.A.C. R18-2-306.A.3.c]
(2) All opacity readings will be observed in accordance with EPA Reference Method 9. The Permittee shall keep a record of the opacity readings from above and the number of hours fuel oil is burned continuously. [A.A.C. R18-2-306.A.3.c]
(3) The 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. Particulate Matter [A.A.C. R18-2-306.A.4]

The Permittee shall keep on record, along with the fuel firing rate, the contractual agreement with the liquid fuel vendor containing the specifications of the liquid fuel being fired for the following parameters:

(1) The higher heating value, andPermit #53418 85 of 131 August 15, 2012

Tucson Electric Power-SGS (2) The ash content

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C. R-18-724.C.1 and J.

D. Sulfur Dioxide (SO 2 )

1. Emission Limitations/Standards

The Permittee shall not cause, allow, or permit the emission of more than 1.0 pounds of SO 2 per million Btu heat input. [A.A.C. R18-2-724.E]
2. Monitoring/Recordkeeping/Reporting Requirements [ A.A.C.R18-2-306.A.4]

a. The Permittee shall keep records of fuel supplier contractual agreement including the following information:

(1) The name of the oil supplier;

(2) The sulfur content and heating value of the oil from which the shipment came; and

(3) The method used to determine the sulfur content of the oil.

b. The Permittee shall maintain records of all emissions calculations performed for any change in Condition V.D.2.a (2) according to the following equation:

SO 2 (lb/MMBtu) =2.0 x [(Weight percent of sulfur/100) x (Density in lb/gal)] 

### ÷ [Heating value of fuel in Btu/gal x 1 MMBtu / 1,000,000 Btu]

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R-18-2-724.E.

VI. EMERGENCY INTERNAL COMBUSTION ENGINES (ICEs)

A. Applicability

This Section applies to emergency diesel generator and diesel fire pumps listed in Equipment List, Attachment “C”.Permit #53418 86 of 131 August 15, 2012

Tucson Electric Power-SGS B. Operating Limitations

1. Fuel Limitation [A.A.C. R18-2-306.A.2]

The Permittee shall burn only diesel fuel or bio-diesel in the ICEs.

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

The Permittee shall limit the hours of operation for each ICE to no more than 500 hours per year in any rolling 12- month period.

3. Record Keeping Requirements [A.A.C. R18-2-306.A.3.c]

The Permittee shall keep records of the rolling 12-month total hours of operation of each ICE to demonstrate compliance with the hourly limitation in Condition VI.B.2.

C. Existing Source Requirements

1. Applicability

This Section applies to the emergency diesel generator and diesel fire pumps marked as ‘No’ under the New Source Performance Standards (NSPS) Applicability column in the Equipment List, Attachment “C”.

2. Particulate Matter & Opacity

a. Emission Limitations and Standards [A.A.C.R18-2-719.C.1]

(1) The Permittee shall not cause, allow or permit the emission of particulate matter, caused by combustion of fuel in excess of the amounts calculated by the following equation:

E = 1.02Q 0.769

Where:

E = the maximum allowable particulate emissions rate in pounds-mass per hour.

Q = the heat input in million BTU per hour.

(2) For the purpose of this Section, the heat input shall be the aggregate heat content of all fuels whose products of combustion pass through a stack or other outlet. The total heat input of all operating fuel-burning units 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]Permit #53418 87 of 131 August 15, 2012

Tucson Electric Power-SGS (3) Opacity [A.A.C. R18-2-719.E]

(a) The Permittee shall not cause, allow or permit to be emitted into the atmosphere from any stationary rotating machinery, smoke for any period greater than 10 consecutive seconds which exceeds 40 percent opacity.

(b) Visible emissions when starting cold equipment shall be exempt from this requirement for the first 10 minutes.

b. Monitoring/Recordkeeping/Reporting Requirements [A.A.C. R18-2-306.A.3.c]
(1) The Permittee shall maintain a record of the daily lower heating value of the fuel fired in the ICEs and gear arrestor engines. This may be accomplished by maintaining on record a copy of that part of the contract with the vendor that specifies the lower heating value of the fuel.

(2) For every 120 hours of continuous operation of the internal combustion engines, a certified EPA Reference Method 9 observer shall conduct a survey of visible emissions emanating from the stacks of all internal combustion engines as described in Attachment “C” of this permit. If the opacity of the emissions observed appears to exceed the applicable opacity standard, the observer shall conduct a certified EPA Reference Method 9 observation. The Permittee shall keep records of the survey and any EPA Reference Method 9 observations 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.

(3) If the observation results in a Method 9 opacity reading in excess of the applicable standard, the Permittee shall report this to ADEQ as excess emission and initiate appropriate corrective action to reduce the opacity below the applicable standard. The Permittee shall keep a record of the corrective action performed.

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R18-2-719.B, C.1, and E.Permit #53418 88 of 131 August 15, 2012

Tucson Electric Power-SGS 3. Sulfur Dioxide (SO 2 )

a. Emission Limitations and Standards

(1) The Permittee shall not cause to emit more than 1.0 pound of SO 2 per million Btu heat input when low sulfur oil is fired. [A.A.C. R18-2-719.F]

(2) The Permittee shall not fire high sulfur oil (greater than 0.9 percent sulfur) in the ICEs. [A.A.C. R18-2-719.H]

b. Monitoring/Recordkeeping/Reporting Requirements [A.A.C.R18-2-306.A.3.c]
(1) The Permittee shall monitor the sulfur content of the fuel being combusted in the ICEs. 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 -719.I]
(2) 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 percent. [A.A.C. R18-2-719.J and 306.A.3]

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

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

D. New Source Performance Standards (NSPS) Subpart IIII Requirements

1. Applicability

a. This Section applies to the emergency ICEs marked as ‘Yes, Subpart IIII’ under the NSPS Applicability column in the Equipment List, Attachment “C”.

b. Emergency ICE Definition [40 CFR 60.4219]

Except as provided in Condition VI.D.2.b, an emergency ICE shall be limited to emergency situations and required testing and maintenance only such as to produce power for critical networks or equipment (including power supplied to portions of a facility) when electric power from the local utility (or the normal power source) is interrupted, or used to pump water in the case of fire or flood, etc.Permit #53418 89 of 131 August 15, 2012

Tucson Electric Power-SGS 2. Operating Requirements

a. The Permittee shall install a non-resettable hour meter prior to startup of the engine. [40 CFR 60.4209(a), A.A.C. R18-2-306.A.3, and -331.A.3.a]

b. Operation of the ICE other than emergency operation, maintenance and testing, and operation in non-emergency situations for more than 50 hours per year, is prohibited. These 50 hours of operation shall be counted towards the 100 hours per year provided for maintenance and testing. [40 CFR 60.4211(f)]

c. There is no time limit on the use of emergency ICE in emergency situations. [40 CFR 60.4211(f)]

d. The Permittee shall operate and maintain the ICE and the control device according to the manufacturer’s written instructions. A copy of the instructions or procedures shall be kept onsite and made available to ADEQ upon request

. [40 CFR 60.4211(a)(1) and A.A.C. R18-2-306.A.3]
e. The Permittee shall only change those emission related settings that are permitted by the manufacturer. [40 CFR 60.4211(a)(2)]

f. The Permittee shall meet the applicable requirements of 40 CFR Part 89, 94 and 1068. [40 CFR 60.4211(a)(3)]

g. The Permittee may operate the stationary ICE for the purpose of maintenance checks and 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 such units is limited to 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 Federal, State, or local standards require maintenance and testing of emergency ICE beyond 100 hours
per year. [40 CFR 60.4211(f)]

3. Fuel Requirements [40 CFR 60.4207(b)]

The Permittee operating a stationary ICE shall use diesel fuel or biodiesel that meets the requirements of non road diesel fuel listed in 40 CFR 80.510(b) and listed below:

a. Sulfur content: 15 ppm maximum; and

b A minimum cetane index of 40 or a maximum aromatic content of 35 volume percent.Permit #53418 90 of 131 August 15, 2012

Tucson Electric Power-SGS 4. Emission Limitations and Standards [40 CFR 60.4205 (c) and Table 4]
a. Non-methane hydrocarbons (NMHC) and Nitrogen Oxides (NO x )

The Permittee shall limit the combined emissions of NMHC and NO x from the ICE to 10.5 g/Kw-hr. b. Carbon Monoxide (CO)

The Permittee shall limit the emissions of CO from the ICE to 3.5 g/Kw-hr. c. Particulate Matter (PM)

The Permittee shall limit the emissions of PM from the ICE to 0.54 g/Kw-hr.

5. Recordkeeping & Reporting Requirements

a. The Permittee shall maintain a copy of engine certification or other documentation demonstrating that the engine complies with the applicable standards in this permit, and shall make the documentation available to ADEQ upon request. [40 CFR 60.4211(c)]
b. The Permittee shall record the time of operation of the engine and the reason the engine was in operation during that time. [40 CFR 60.4214(b)]
c. The Permittee shall keep records of fuel supplier specifications. The specifications shall contain name of the supplier, sulfur content, and cetane index or aromatic content in the fuel. These records shall be made available to ADEQ upon request. [A.A.C.R18-2-306.A.3.c]

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

Compliance with the conditions of this Section shall be deemed compliance with 40 CFR 60. 4205(c), (e), & (f), 4207(b), 4209(a), 4211(a)(1), (2) & (3), (c), & (f), 4214(b), and 4219.

E. National Emission Standards for Hazardous Air Pollutants (NESHAP) Subpart ZZZZ Requirements

1. Applicability

a. This Section is applicable to emergency ICEs marked as ‘Yes, Subpart ZZZZ’ in NESHAP applicability column in Equipment List, Attachment “C”.

b. Emergency stationary ICE means any stationary internal combustion engine whose operation is limited to emergencyPermit #53418 91 of 131 August 15, 2012

Tucson Electric Power-SGS situations and required testing and maintenance. [40 CFR 63.6675]

c. The Permittee shall comply with the terms of this Section no later than May 3, 2013. [40 CFR 63.6595(a)(1)]

2. Operating Requirements [40 CFR 63.6605]

a . The Permittee shall operate and maintain 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. Determination 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, review 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. [40 CFR 63.6625 (h)] c. The Permittee shall operate each ICE according to the requirements in following paragraphs VI.E.2.c.i and VI.E.2.c.ii of this section. If the engine is not operated according to the requirements in paragraphs VI.E.2.c.i and VI.E.2.c.ii of this Condition, the engine will not be considered an emergency engine and shall meet all requirements for non-emergency engines. [40 CFR 63.6640 (f)] (1) The Permittee may operate the emergency engines for the purpose of maintenance checks and 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 standards require maintenance and testing beyond 100 hours per year. Copies of records shall be made available to ADEQ upon request.Permit #53418 92 of 131 August 15, 2012

Tucson Electric Power-SGS (2) The Permittee may operate the emergency 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 for maintenance and testing. The 50 hours per year for non-emergency 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 part 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 balancing 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 minutes 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 condition is no longer imminent. The 15 hours per year of demand response operation are counted as part of the 50 hours of operation per year provided for non-emergency situations. The supply 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-resettable hour meter on the emergency fire pump engine

. [40 CFR 63.6625(f) and A.A.C. R18-2-331.A.3.a]
f. The Permittee shall change oil and filter 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, and 63.6625(i)]
g. The Permittee shall inspect air cleaner 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 maintain the emergency fire pump engine according to the manufacturer's emission-related written instructions or develop a maintenance plan which mustPermit #53418 93 of 131 August 15, 2012

Tucson Electric Power-SGS provide to the extent practicable for the maintenance and operation of the engine in a manner consistent with good air pollution control practice for minimizing emissions. [ 40 CFR 63.6625(e)] 3. Recordkeeping Requirements a. The Permittee shall keep records of the hours of operation ofeach emergency engine that is recorded through the nonresettable hour meter. Records shall include the date, start and stop times, hours spent for emergency operation, including what classified the operation as emergency and how many hours are spent 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 demonstrates 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 Permittee shall keep records of the notification of the emergency situation, and the time the engine was operated as part of demand
response. [40 CFR 63.6655(f)]

4. Compliance Requirements [40 CFR 63.6590(c)]

The Permittee, for the emergency ICE subject to NSPS Subpart IIII shall comply with the requirements of NESHAP ZZZZ by meeting requirements of NSPS Subpart IIII.

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

Compliance with the conditions of this Section shall be deemed compliance with 40 CFR Part 63.6 590 (c), 6595 (a)(1), 6603(a), 6605(b), 6625(e) & (f), 6640(f), 6655(e) & (f), Table 2d of 40 CFR subpart ZZZZ, and 6675.

VII. COOLING TOWERS

A. Applicability

This Section applies to Cooling Towers described in Condition #s I.D.3 and 4, and Equipment List, Attachment “C”.Permit #53418 94 of 131 August 15, 2012

Tucson Electric Power-SGS B. Operating Limitations

1. Gaseous or Odorous Materials

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

b. 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 may 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]

2. Flow Rate Limitation [A.A.C. R18-2-306.A.2 and -406.A.4]

a. The Permittee shall not cause, allow or permit the total circulating water flow rate in CT 1 or CT 2 to exceed 176,000 gallons per minute, total for the thirteen cells in each tower.

b. The Permittee shall not cause, allow or permit the total circulating water flow rate in CT 3 or CT 4 to exceed 200,000 gallons per minute.

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

Compliance with the conditions of this Section shall be deemed compliance with A.A.C.R-18-730.D and G.

C. Particulate Matter (PM/PM 10 ) and Opacity

1. Emission Limitations/Standards

a. Particulate Matter

(1) The Permittee shall not discharge PM into the atmosphere in any one hour from any CT in total quantities in excess of the amounts calculated by the following equation: [A.A.C. R18-2-730.A.1 and B]

E = 55.0 P 0.11 - 40

Where:

E = the maximum allowable particulate emissions rate in pounds-mass per hour.

P = the process weight rate in tons-mass per hour.Permit #53418 95 of 131 August 15, 2012

Tucson Electric Power-SGS (2) 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.

(3) The Permittee shall not discharge into the atmosphere from CT 1 or CT 2 any gases which contain PM in excess of 108.4 lbs per hour, total for the thirteen cells in each tower. [A.A.C. R18-2-406.A.4]
(4) The Permittee shall not discharge into the atmosphere from CT 3 or CT 4 any gases which contain PM in excess of 12.32 lbs per hour, total for each tower. [A.A.C. R18-2-406.A.4]
b. Opacity

(1) The Permittee shall not cause, allow or permit to be emitted into the atmosphere any visible emissions in excess of 20 percent opacity measured in accordance with EPA Reference Method 9. [A.A.C.R18-2-702.B.1]

(2) If the presence of uncombined water is the only reason for an exceedance of any visible emissions requirement, the exceedance shall not constitute a violation of the opacity limit specified in Condition VII.C.1.b. (1). [A.A.C. R18-2-702.C]
2. Air Pollution Control Requirements [Material Permit Conditions are defined by underline and italics]

a. The Permittee shall not cause, allow or permit the operation of CTs without properly maintaining the drift eliminators. [A.A.C. R18-2-306.A.2 and -331.A.3.e]

b. The drift eliminators for CT 1 and CT 2 shall be designed for a total liquid drift not to exceed 0.005 percent of the circulating water flow rate. [A.A.C. R18-2-306.A.2, -331.A.3.e, and -406.A.4]

c. The drift eliminators for CT 3 and CT 4 shall be designed for a total liquid drift not to exceed 0.0005 percent of the circulating water flow rate. [A.A.C. R18-2-306.A.2, -331.A.3.e, and -406.A.4]

3. Monitoring/Recordkeeping/Reporting Requirements

a. Particulate Matter [A.A.C. R18-2-306.A.3.c]

The Permittee shall comply with the following requirements:

(1) The Permittee shall maintain readily available records of the design and vendor-guaranteed maximum total liquidPermit #53418 96 of 131 August 15, 2012

Tucson Electric Power-SGS drift of each CT.

(2) The Permittee shall maintain readily available records of the design maximum pumping capacity of each of the water pumps serving the CTs.

(3) The Permittee shall measure and record twice per month the Total Dissolved Solids (TDS) of the circulating water used in each CT. Solids measurement shall be performed using EPA Method 160.3 (in Methods for the Chemical Analysis of Water and Wastes; EPA-600/4-79- 020; U.S. EPA, Environmental Monitoring and Systems Laboratory, Cincinnati, Ohio) or equivalent method as approved by the Director.

(4) The Permittee shall calculate twice per month the particulate matter emission rate from each CT. Each CT emission rate calculation shall be calculated using the vendor-guaranteed maximum total liquid drift for the CT and drift eliminators, the design maximum pumping capacity for the CT, and the measured TDS of the circulating water in the CT. A calculated particulate matter emission rate exceeding the limitation in Conditions VII.C.1.a (3) and (4) shall constitute a period of excess emissions.

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

(1) A certified Method 9 observer shall conduct a weekly visual survey of visible emissions from the cooling towers when it is in operation. The Permittee shall record the name of the observer, the date the observation was made, and the results of the observation.

(2) If the observer sees a plume from an emission point that on an instantaneous basis appears to exceed the opacity standard in Condition VII.C.1.b, the observer shall, if possible, take a six-minute Method 9 observation of the plume.

(3) If the six-minute opacity of the plume exceeds the opacity standard in Condition VII.C.1.b the Permittee shall do the following:

(a) Adjust or repair the controls or equipment to reduce opacity to below the opacity standard in condition VII.C.1.b; and

(b) Report it as an excess emission in accordance with Condition XII.A of Attachment “A” of thisPermit #53418 97 of 131 August 15, 2012

Tucson Electric Power-SGS permit.

(4) If the six-minute opacity of the plume is less than the opacity standard in Condition VII.C.1.b, the observer shall make a record of the following:

(a) Date and time of the test; and

(b) The results of the Method 9 observation.

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

Compliance with the conditions of this Section shall be deemed compliance with A.A.C.R-18-2-702.B.1, -730.A.1 and B.

VIII. COAL PREPARATION PLANT

A. Applicability

This Section applies to the Coal Preparation Plants described in Equipment List, Attachment “C”.

B. Particulate Matter (PM/PM 10 ) and Opacity

1. Emission Limitations/Standards

a. Opacity [Material Permit Conditions are defined by underline and italics]

(1) The Permittee shall not cause to be discharged into the atmosphere from any coal processing and conveying equipment, coal storage system (except for open storage piles), or coal transfer and loading system processing coal, gases which exhibit 20 percent opacity or greater. [40 CFR 60.252(c) and A.A.C. R18-2-331.A.3.f]
(2) The Permittee shall not cause to be discharged into the atmosphere from any coal preparation plant fabric filter baghouse any gases which exhibit 20 percent opacity or greater . This emission standard shall not apply during periods of startup, shutdown, or malfunction (Condition #s I.D.8, 12, and 14). [40 CFR 60.252(c) and A.A.C. R18-2-331.A.3.f]
(3) The Permittee shall not cause to be discharged into the atmosphere from any coal preparation plant fabric filter baghouse installed as part of the Unit 3 and Unit 4 modernization any gases which exhibit 10 percent opacity or greater . This emission standard shall not apply during periods of startup, shutdown, or malfunction (Condition #s I.D.8, 12, and 14). [40 CFR 60.252(c), A.A.C. R18-2-331.A.3.f, and -406.A.4]Permit #53418 98 of 131 August 15, 2012

Tucson Electric Power-SGS (4) The Permittee shall not cause to be discharged into the atmosphere from any coal storage pile emissions which exhibit 40 percent opacity or greater. [A.A.C. R18-2-331.A.3.f, -406.A.4, and-614]

b. Particulate Matter

The Permittee shall not cause to be discharged into the atmosphere from any coal preparation plant fabric filter baghouse installed as part of the Unit 3 and Unit 4 modernization, any gases containing PM in excess of 0.01 grains per dry standard cubic foot. [A.A.C. R18-2-406.A.4]

2. Air Pollution Control Requirements [Material Permit Conditions are defined by underline and italics]

a. At all times when the system is in operation, including periods of startup, shutdown, and malfunction (as defined in Condition #s I.D.8, 12, and 14), the Permittee shall, to the extent practicable

, maintain and operate the baghouses to capture PM emissions associated with coal preparation and mixing in a manner consistent with good air pollution control practices. [40 CFR 60.11(d) and A.A.C. R18-2-331.A.3.e]

b. The Permittee shall operate and maintain at all times a covered conveyor belt transfer system. [A.A.C. R18-2-306.A.2 and -331.A.3.e]

c. The Permittee shall utilize water spray with surfactant as necessary to control PM emissions at the active and emergency coal storage pile(s). [A.A.C. R18-2-306.A.2 and -331.A.3.e]

d. The Permittee shall utilize enclosures and water spray with surfactant as necessary to control PM emissions at the rail unloading area and the emergency reclaim hopper. [A.A.C. R18-2-306.A.2 and -331.A.3.e]

e. The Permittee shall utilize enclosures and fabric filter baghouses to control PM emissions at all coal handling locations other than the active coal storage pile(s) and the locations listed in Conditions VIII.B.2.c & d. The locations controlled with enclosures and fabric filter baghouses shall include the following : [A.A.C. R18-2-306.A.2 and -331.A.3.e]

(1) Transfer towers ;

(2) Crusher towers ;

(3) Discharge hoppers; and

(4) Coal storage silos

.Permit #53418 99 of 131 August 15, 2012

Tucson Electric Power-SGS 3. Monitoring/Recordkeeping/Reporting Requirements

a. Opacity Monitoring [A.A.C. R18-2-306.A.3.c]

(1) A certified Method 9 observer shall conduct a weekly visual survey of visible emissions from the coal preparation plant when in operation. This weekly survey shall include observation of all exposed transfer points, enclosed transfer points, the coal storage system, the coal storage pile and the baghouses in the coal handling system. The Permittee shall keep a record of the name of the observer, the date on which the observation was made, and the results of the observation.

(2) If the observer sees a plume from an emission point that on an instantaneous basis appears to exceed the applicable opacity standard in Condition VIII.B.1.a, the observer shall if possible take a six-minute Method 9 observation of the plume.

(3) If the six-minute opacity of the plume exceeds the applicable opacity standard in Condition VIII.B.1.a, the Permittee shall do the following:

(a) Adjust or repair the controls or equipment to reduce opacity to below the applicable opacity standard in Condition VIII.B.1.a; and

(b) Report it as an excess emission in accordance with Section XII.A of Attachment A of this permit.

(4) If the six-minute opacity of the plume is less than the applicable opacity standard in Condition VIII.B.1.a, the observer shall make a record of the following:

(a) Date and time of the test; and

(b) The results of the Method 9 observation.

4. Testing for PM

For the baghouses, if an opacity exceedance is detected during the course of the weekly visible emissions survey and the Permittee is unable to identify adjustments or repairs necessary to address the opacity violation within 72 hours, the Permittee shall conduct a performance test for those baghouses within 180 days to show compliance with the PM limit identified in Condition VIII.B.1.b. [A.A.C. R18-2-306.A.3.c and -406.A.4]Permit #53418 100 of 131 August 15, 2012

Tucson Electric Power-SGS 5. Permit Shield [A.A.C.R18-2-325]

Compliance with the conditions of this Section shall be compliance with 40 CFR 60.252(c).

IX. LIME HANDLING – UNIT 1 AND UNIT 2

A. Applicability

This Section applies to Lime Handling Unit 1 and Unit 2 as described in Attachment “C”.

B. Particulate Matter (PM/PM10) and Opacity

1. Emission Limitations/Standards

a. Opacity [A.A.C. R18-2-702.B.1]

The Permittee shall not cause, allow or permit to be emitted into the atmosphere from any lime handling operation any visible emissions in excess of 20 percent opacity measured in accordance with EPA Reference Method 9.

b. Particulate Matter [A.A.C. R18-2-730.A.1 and B]

The Permittee shall not cause, allow or permit the discharge of PM into the atmosphere in any one hour from any lime handling operation in total quantities in excess of the amounts calculated by the following equations:

(1) For process sources having a process weight rate of 60,000 pounds per hour (30 tons per hour) or less, the maximum allowable emissions shall be determined by the following equation:

E = 4.10 P 0.67

Where:

E = the maximum allowable particulate emissions rate in pounds-mass per hour.

P = the process weight rate in tons-mass per hour.

(2) For process sources having a process weight rate greater than 60,000 pounds per hour (30 tons per hour), the maximum allowable emissions shall be determined by the following equation:

E = 55.0 P 0.11 - 40Permit #53418 101 of 131 August 15, 2012

Tucson Electric Power-SGS Where:

E = the maximum allowable particulate emissions rate in pounds-mass per hour.

P = the process weight rate in tons-mass per hour.

(3) The total process weight from all similar units employing a similar type process shall be used in determining the maximum allowable emission of PM.

2. Air Pollution Control Requirements

At all times when the system is in operation, the Permittee shall maintain and operate the enclosure system and baghouses used to capt ure PM emissions associated with lime handling system in a manner consistent with good air pollution control practices. [A.A.C. R18-2-306.A.2 and R18-2-331.A.3.e] [Material Permit Conditions are defined by underline and italics]
3. Monitoring/Recordkeeping/Reporting Requirements

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

(1) A certified Method 9 observer shall conduct a weekly visual survey of visible emissions from the lime handling system when in operation. This weekly observation shall include observation of all exposed transfer points and each baghouse exhaust. The Permittee shall keep a record of the name of the observer, the date on which the observation was made, and the results of the observation.

(2) If the observer sees a plume from an emission point that on an instantaneous basis appears to exceed the applicable opacity standard in Condition IX.B.1.a, the observer shall, if possible, take a six-minute Method 9 observation of the plume.

(3) If the six-minute opacity of the plume exceeds the applicable opacity standard in Condition IX.B.1.a, the Permittee shall:

(a) Adjust or repair the controls or equipment to reduce opacity to below the opacity standard in Condition IX.B.1.a; and

(b) Report it as an excess emission in accordance with Condition XII.A of Attachment “A” of this permit.Permit #53418 102 of 131 August 15, 2012

Tucson Electric Power-SGS (4) If the six-minute opacity of the plume is less than the applicable opacity standard in Condition IX.B.1.a, the observer shall make a record of the following:

(a) Date and time of the test; and

(b) The results of the Method 9 observation.

b. Particulate Matter [A.A.C. R18-2-306.A.3.c]

(1) The Permittee shall maintain and operate the baghouses in accordance with good operating practices. These specifications shall be on file and be readily available for inspection by the Director.

(2) The Permittee shall maintain records of emissions related maintenance performed on the baghouses.

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R-18-2-702.B.1, -730.A.1, and B.

X. LIME HANDLING - UNIT 3 AND UNIT 4

A. Applicability

This Section applies to Lime Handling– Unit 3 and Unit 4 as described in Equipment List, Attachment “C”.

B. Particulate Matter (PM/PM 10 ) and Opacity

1. Emission Limitations/Standards

a. Opacity [Material Permit Conditions are defined by underline and italics]

(1) The Permittee shall not cause to be discharged into the atmosphere from any lime handling operation any visible emissions in excess of 20 percent opacity measured in accordance with EPA Reference Method 9. [A.A.C. R18-2-331.A.3.f, -406.A.4, and -702.B.1]
(2) The Permittee shall not cause to be discharged into the atmosphere from any lime handling system fabric filter baghouse any visible emissions in excess of 10 percent opacity measured in accordance with EPA Reference Method 9. This emission standard shall not apply during periods of startup, shutdown, or malfunction (as defined in Condition #s I.D.8, 12. and 14). [A.A.C. R18-2-331.A.3.f, -406.A.4, and -702.B.1]Permit #53418 103 of 131 August 15, 2012

Tucson Electric Power-SGS b. Particulate Matter

(1) The Permittee shall not cause to be discharged into the atmosphere from any lime handling system fabric filter baghouse any gases containing PM in excess of 0.01 grains per dry standard cubic foot. [A.A.C. R18-2-406.A.4]

(2) The Permittee shall not cause, allow or permit the discharge of PM into the atmosphere in any one hour from any lime handling operation in total quantities in excess of the amounts calculated by the following equations: [A.A.C. R18-2-730.A.1 and B]

(a) For process sources having a process weight rate of 60,000 pounds per hour (30 tons per hour) or less, the maximum allowable emissions shall be determined by the following equation:

E = 4.10 P 0.67

Where:

E = the maximum allowable particulate emissions rate in pounds-mass per hour.

P = the process weight rate in tons-mass per hour.

(b) For process sources having a process weight rate greater than 60,000 pounds per hour (30 tons per hour), the maximum allowable emissions shall be determined by the following equation:

E = 55.0 P 0.11 - 40

Where:

E =the maximum allowable particulate emissions rate in pounds-mass per hour.

P = the process weight rate in tons-mass per hour.

(c) 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.Permit #53418 104 of 131 August 15, 2012

Tucson Electric Power-SGS 2. Air Pollution Control Requirements [Material Permit Conditions are defined by underline and italics]

a. The Permittee shall utilize enclosures and fabric filter baghouses to control PM emissions at all lime handling locations. [A.A.C. R18-2-331.A.3.e and -406.A.4]

b. At all times when the lime handling system is in operation, including periods of startup, shutdown, and malfunction (as defined in Condition #s I.D.8, 12, and 14), the Permittee shall maintain and operate the associated enclosures and fabric filter baghouses in a manner consistent with good air pollution control practices

. [A.A.C. R18-2-331.A.3.e and -406.A.4]
3. Monitoring/Recordkeeping/Reporting Requirements

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

(1) A certified Method 9 observer shall conduct a weekly visual survey of visible emissions from the lime handling system when in operation. This weekly survey shall include observation of all exposed transfer points and fabric filter baghouses in the lime handling system. The Permittee shall keep a record of the name of the observer, the date on which the observation was made, and the results of the observation.

(2) If the observer sees a plume from a lime handling system fabric filter baghouse that on an instantaneous basis appears to exceed applicable opacity standard, the observer shall if possible take a six-minute Method 9 observation of the plume.

(3) If the six-minute opacity of the plume from the lime handling system baghouse exceeds applicable opacity standard, the Permittee shall:

(a) Adjust or repair the controls or equipment to reduce opacity to below 10 percent; and

(b) Report it as an excess emission in accordance with Section XII.A of Attachment “A” of this permit.

(4) If the six-minute opacity of the plume from the lime handling system baghouse is less than applicable opacity standard, the observer shall make a record of the:

(a) Date and time of the test; andPermit #53418 105 of 131 August 15, 2012

Tucson Electric Power-SGS (b) The results of the Method 9 observation.

(5) If the observer sees a plume from a lime handling system emission point other than a fabric filter baghouse that on an instantaneous basis appears to exceed the applicable opacity standard in Condition X.B.1.a(1), the observer shall if possible take a six-minute Method 9 observation of the plume.

(6) If the six-minute opacity of the plume from the lime handling system emission point exceeds the applicable opacity standard in Condition X.B.1.a (1), the Permittee shall:

(a) Adjust or repair the controls or equipment to reduce opacity to below the opacity standard in Condition X.B.1.a (1); and

(b) Report it as an excess emission in accordance with Section XII.A of Attachment “A” of this permit.

(7) If the six-minute opacity of the plume from the lime handling system emission point is less than the applicable opacity standard in Condition X.B.1.a(1), the observer shall make a record of the:

(a) Date and time of the test; and

(b) The results of the Method 9 observation.

b. Particulate Matter [A.A.C.R18-2-306.A.3.c]

The Permittee shall maintain records of emissions related maintenance performed on the lime handling system fabric filter baghouses.

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R-18-2-702.B.1, -730.A.1, and B.

XI. FLY ASH HANDLING - UNIT 1 AND UNIT 2

A. Applicability

This Section applies to Fly Ash Handling-Unit 1 and Unit 2 as described in Equipment List, Attachment “C”.Permit #53418 106 of 131 August 15, 2012

Tucson Electric Power-SGS B. Particulate Matter (PM/PM 10 ) and Opacity

1. Emission Limitations/Standards

a. Opacity

The Permittee shall not cause, allow or permit to be emitted any emissions into the atmosphere from the fly ash handling operation in excess of 20 percent opacity measured in accordance with EPA Reference Method 9 . [A.A.C. R18-2-702.B.1]

b. Particulate Matter [A.A.C. R18-2-730.A.1 and B]

The Permittee shall not cause, allow or permit the discharge of PM into the atmosphere in any one hour from any fly ash handling operation in total quantities in excess of the amounts calculated by the following equations:

(1) For process sources having a process weight rate of 60,000 pounds per hour (30 tons per hour) or less, the maximum allowable emissions shall be determined by the following equation:

E = 4.10 P 0.67

Where:

E = the maximum allowable particulate emissions rate in pounds-mass per hour. P = the process weight rate in tons-mass per hour.

(2) For process sources having a process weight rate greater than 60,000 pounds per hour (30 tons per hour), the maximum allowable emissions shall be determined by the following equation:

E = 55.0 P 0.11 - 40

Where E and P are as defined above.

(3) 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. Air Pollution Control Requirements [Material Permit Conditions are defined by underline and italics]

a. Fly ash shall be collected from the baghouses hoppers, and transported to the ash handling system

. [A.A.C. R18-2-331.A.3.e and -306.A.2]Permit #53418 107 of 131 August 15, 2012

Tucson Electric Power-SGS b. The emissions from dry fly ash unloading shall be ducted through a Dust Filter Module. This module shall be maintained and operated in accordance with manufacturer’s specifications. These specifications shall be on file and shall be readily available for inspection by the Department. [A.A.C. R18-2-331.A.3.e and -306.A.2]

c. The emission from the vent of the fly ash storage silos shall be ducted to the flue gas system before entering the baghouses. [A.A.C. R18-2-331.A.3.e and -306.A.2]

d. The Permittee shall process transport, load/unload, store, and dispose of the Irvington Generating Station (IGS) fly ash in compliance with the following:

(1) The Permittee shall operate and maintain valves and piping at Units 1 and 2 fly ash storage silos necessary to provide for a sealed transfer of the IGS fly ash to the silos. [A.A.C. R18-2-331.A.3.e and -306.A.2]

(2) Upon receiving the IGS fly ash at the SGS facility and thereafter, the Permittee shall not cause, permit, orallow the ash haul road to be used by vehicular or nonvehicular traffic without the use of effective oil and chip surface with appropriate load-bearing base as required to control dust emissions from the ash haul road. [A.A.C. R18-2-331.A.3.e and -306.A.2]
(3) Upon receiving the IGS fly ash at the SGS facility and thereafter, the Permittee shall not cause, permit, orallow the ash haul road to be used by vehicular or nonvehicular traffic unless the ash haul road has been watered within the most recent 24 hours. This requirement does not apply in the event that the ash haul road has received measurable precipitation within the most recent 24 hours

. [A.A.C. R18-2-331.A.3.e and -306.A.2]

3. Monitoring/Recordkeeping/Reporting Requirements

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

(1) A certified Method 9 observer shall conduct a weekly visual survey of visible emissions from the fly ash handling system when in operation. This weekly observation shall include observation of all exposed transfer points. The Permittee shall keep a record of the name of the observer, the date on which the observation was made, and the results of the observation.

(2) If the observer sees a plume from an emission point that on an instantaneous basis appears to exceed thePermit #53418 108 of 131 August 15, 2012

Tucson Electric Power-SGS applicable opacity standard in Condition XI.B.1.a, the observer shall if possible take a six-minute Method 9 observation of the plume.

(3) If the six-minute opacity of the plume exceeds the applicable opacity standard in Condition XI.B.1.a, the Permittee shall do the following:

(a) Adjust or repair the controls or equipment to reduce opacity to below the opacity standard in Condition XI.B.1.a; and

(b) Report it as an excess emission in accordance with Condition XII.A of Attachment “A” of this permit.

(4) If the six-minute opacity of the plume is less than the applicable opacity standard in Condition XI.B.1.a, the observer shall make a record of the following:

(a) Date and time of the test; and

(b) The results of the Method 9 observation.

b. Dust Filter Module [A.A.C.R18-2-306.A.3.c]

The Permittee shall maintain records of emissions related maintenance performed on the Dust Filter Module.

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R-18-2-702.B.1, -730.A.1, and B.

XII. FLY ASH HANDLING - UNIT 3 AND UNIT 4

A. Applicability

This Section applies to Fly Ash Handling – Unit 3 and Unit 4 as described in Equipment List, Attachment “C”.

B. Emission Limits and Standards

1. Opacity [Material Permit Conditions are defined by underline and italics]

a. The Permittee shall not cause to be discharged into the atmosphere from any fly ash handling operation any visible emissions in excess of 20 percent opacity measured in accordance with EPA Reference Method 9. [A.A.C. R18-2-331.A.3.f, -406.A.4, and -702.B.1]Permit #53418 109 of 131 August 15, 2012

Tucson Electric Power-SGS b. The Permittee shall not cause to be discharged into the atmosphere from any fly ash handling system fabric filter baghouse any visible emissions in excess of 10 percent opacity measured in accordance with EPA Reference Method 9. This emission standard shall not apply during periods of startup, shutdown, or malfunction (Condition #s I.D.8, 12, and 14) [A.A.C. R18-2-331.A.3.f and -406.A.4]

2. Particulate Matter

a. The Permittee shall not cause to be discharged into the atmosphere from any fly ash handling system fabric filter baghouse any gases containing PM in excess of 0.01 grains per dry standard cubic foot. [A.A.C. R18-2-406.A.4]
b. The Permittee shall not cause, allow or permit the discharge of PM into the atmosphere in any one hour from any fly ash handling operation in total quantities in excess of the amounts calculated by the following equations: [A.A.C. R18-2-730.A.1 and B]

(1) For process sources having a process weight rate of 60,000 pounds per hour (30 tons per hour) or less, the maximum allowable emissions shall be determined by the following equation:

E = 4.10 P 0.67

Where:

E = the maximum allowable particulate 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) For process sources having a process weight rate greater than 60,000 pounds per hour (30 tons per hour), the maximum allowable emissions shall be determined by the following equation:

E = 55.0 P 0.11 - 40

Where E and P are as defined above.

(3) 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.Permit #53418 110 of 131 August 15, 2012

Tucson Electric Power-SGS C. Air Pollution Control Equipment [Material Permit Conditions are defined by underline and italics]

1. The Permittee shall collect fly ash from the Unit 3 and Unit 4 fabric filter baghouse hoppers, and any other hoppers that may be installed for fly ash collection, and shall transport the fly ash to the fly ash handling system

. [A.A.C. R18-2-331.A.3.e and -406.A.4]

2. The Permittee shall utilize enclosures and fabric filter baghouses to control particulate matter emissions at all Unit 3 and Unit 4 fly ash handling locations other than the fly ash silo truck loading and the ash dump

. [A.A.C. R18-2-331.A.3.e and -406.A.4]

3. At all times when the fly ash handling system is in operation, including periods of startup, shutdown, and malfunction (as defined in Condition I.D.8, 12, and 14), the Permittee shall maintain and operate the enclosure systems and the fly ash handling system baghouses in a manner consistent with good air pollution control practices. [A.A.C. R18-2-331.A.3.e and -406.A.4]
D. Monitoring/Recordkeeping/Reporting Requirements

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

a. A certified Method 9 observer shall conduct a weekly visual survey of visible emissions from the fly ash handling system when it is in operation. This weekly survey shall include observation of all exposed transfer points and fabric filter baghouses in the fly ash handling system. The Permittee shall keep a record of the name of the observer, the date on which the observation was made, and the results of the observation.

b. If the observer sees a plume from a fly ash handling system fabric filter baghouse that on an instantaneous basis appears to exceed the applicable opacity standard, the observer shall if possible take a six-minute Method 9 observation of the plume.

c. If the six-minute opacity of the plume from the fly ash handling system baghouse exceeds 10 percent, the Permittee shall do the following:

(1) Adjust or repair the controls or equipment to reduce opacity to below 10 percent; and

(2) Report it as an excess emission in accordance with Condition XII.A of Attachment “A” of this permit.

d. If the six-minute opacity of the plume from the fly ash handling system baghouse is less than the applicable opacity standard, the observer shall make a record of the following:Permit #53418 111 of 131 August 15, 2012

Tucson Electric Power-SGS (1) Date and time of the test; and

(2) The results of the Method 9 observation.

e. If the observer sees a plume from a fly ash handling system emission point other than a fabric filter baghouse that on an instantaneous basis appears to exceed the applicable opacity standard in Condition XII.B.1.a, the observer shall if possible take a six-minute Method 9 observation of the plume.

f. If the six-minute opacity of the plume from the fly ash handling system emission point exceeds the applicable opacity standard in Condition XII.B.1.a, the Permittee shall:

(1) Adjust or repair the controls or equipment to reduce opacity to below the opacity standard in Condition XII.B.1.a; and

(2) Report it as an excess emission in accordance with Section XII.A of Attachment “A” of this permit.

g. If the six-minute opacity of the plume from the fly ash handling system emission point is less than the applicable opacity standard in condition XI.B.1.a, the observer shall make a record of the:

(1) Date and time of the test; and

(2) The results of the Method 9 observation.

2. Particulate Matter

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

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R-18-2-702.B.1, -730.A.1 and B.

XIII. ACTIVATED CARBON SILO

Particulate Matter and Opacity

A. Emission Limitations

1. The Permittee shall not cause, allow or permit the opacity of visible emissions exiting from the activated carbon silo to exceed 20 percent as measured by EPA Reference Method 9. [A.A.C. R18-2-702.B.1]Permit #53418 112 of 131 August 15, 2012

Tucson Electric Power-SGS 2. The Permittee shall not cause, allow or permit the emission of particulates matter from the activated carbon silo into the atmosphere in quantities greater than the amount calculated by the following equation:

E = 4.10 * P0.67

Where:

E = the maximum allowable particulate emission rate in pounds-mass per hour P = the process weight rate in tons-mass per hour [A.A.C. R18-2-730.A.1.a]
3. 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]

B. Air Pollution Control Requirements At all times when the system is in operation, including periods of startup, shutdown, and malfunction (as defined in Condition #s I.D.8,12, and 14), the Permittee shall, to the extent practicable, maintain and operate a vent filter to capture particulate matter emissions associated with the activated carbon silo in a manner consistent with good air pollution control practices

. [A.A.C. R18-2-306.A.2 and -331.A.3.e]

C. Monitoring/Recordkeeping/Reporting Requirements

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

1. A certified Method 9 observer shall conduct a weekly visual survey of visible emissions from the activated carbon silo when it is in operation. The Permittee shall keep a record of the name of the observer, the date on which the observation was made, and the results of the observation.

2. If the observer sees a plume that on an instantaneous basis appears to exceed the applicable opacity standard, the observer shall if possible take a six-minute Method 9 observation of the plume.

3. If the six-minute opacity of the plume exceeds the applicable opacity standard, the Permittee shall do the following:

a. Adjust or repair the controls or equipment to reduce opacity to below the applicable opacity standard; and

b. Report it as an excess emission in accordance with Section XII.A of Attachment A of this permit.

4. If the six-minute opacity of the plume is less than the applicable opacity standard, the observer shall make a record of the following:Permit #53418 113 of 131 August 15, 2012

Tucson Electric Power-SGS a. Date and time of the test; and b. The results of the Method 9 observation.

D. Permit Shield [A.A.C.R18-2-325] Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R-18-2-702.B.1, -730.A.1.a, and B.

XIV. EVAPORATIVE WATER SPRAY SYSTEMS (EWS) A. General Requirements

1. The Permittee shall maintain and operate, as appropriate, four evaporative water spray systems (EWS) at the Evaporative Ponds East and West (for Unit 3) and Evaporative Ponds 1, 2, and 3 (for Units 1 and 2) to address any freeboard issues. [A.A.C. R18-2-402.A]
2. The Permittee shall maintain and operate the EWS according to the manufacturer’s specifications. [A.A.C. R18-2-406.A.4]

3. The Permittee shall not emit gaseous or odorous materials from equipment, operations or premises under his control in such quantities as to cause air pollution. [A.A.C. R18-2-730.D]

4. Materials including solvents or other volatile compounds, paints, acids, alkalis, pesticides, fertilizers and manure shall be processed, stored, used and transported in such a manner and by such means that they will not evaporate, leak, escape or be otherwise 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 pollution from evaporation, leakage or discharge, the installation and use of such control methods, devices or other equipment shall be mandatory. [A.A.C. R18-2-730.F]
5. 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 may require the installation of abatement equipment or the alteration of such stack, vent or other outlet by the Permittee 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]
6. Monitoring and Recordkeeping Requirements [A.A.C. R18-2-306.A.3.c and -306.A.4.a]
a. At the end of each quarter the Permittee shall calculate the total hours of operation of each spray system for the preceding four quarters.

b. The Permittee shall perform a quarterly inspection of each spray nozzle to ensure their proper functioning and physical integrity. The Permittee shall keep a record of the date and result of each inspection and any corrective action performed.Permit #53418 114 of 131 August 15, 2012

Tucson Electric Power-SGS B. Opacity Limit [A.A.C. R18-2-702.B.1 and C]

The Permittee shall not cause or allow to be discharged into the atmosphere from the EWS any emissions which exhibits opacity greater than 20 percent, as determined by Method 9. If the presence of uncombined water is the only reason for an exceedance of the opacity standard, the exceedance shall not constitute a violation.

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C. R18-2-702.B.1, C, -730.D, F, and G.

XV. FUGITIVE DUST SOURCES

A. Emission Limits and Standards

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

1. The 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. R18-2-614]
2. The Permittee shall employ the following reasonable precautions to prevent excessive amounts of particulate matter from becoming airborne:

a. For open areas, use approved dust suppressants, adhesive soil stabilizer, paving, covering, detouring, or wetting agents on, or bar access to open areas during construction operations, repair operations, demolition activities, clearing operations, and leveling operations, or when any earth is moved or excavated or other acceptable means. [A.A.C. R18-2-604.A]

b. For open areas, 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 or other acceptable means. [A.A.C. R18-2-604.B]
c. For Roadways & Streets, use approved dust suppressants, temporary paving, detouring or wetting agents when a roadway is repaired, constructed, or reconstructed or by other reasonable

means. [A.A.C. R18-2-605.A]
d. For Roadways & Streets, use dust suppressants, spray bars, hoods, wetting agents, or cover the load adequately when transporting material likely to give rise to airborne dust or other reasonable precautions; [A.A.C. R18-2-605.B]
e. For Material Handling, use spray bars, hoods, wetting agents, dust suppressants, or cover when crushing, handling, orPermit #53418 115 of 131 August 15, 2012

Tucson Electric Power-SGS conveying material that is likely to give rise to airborne dust; [A.A.C. R18-2-606]

f. For Storage Piles, 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]

g. For Storage Piles, 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]

h. For Roadway & Site Cleaning Machinery, use wetting agents or dust suppressants 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]

i. Any other method as proposed by the Permittee and approved by the Director.

B. Air Pollution Control Equipment [A.A.C. R18-2-331.A.3.e and -406.A.4] [Material Permit Conditions are defined by underline and italics]

1. The Permittee shall not cause, permit, or allow the ash haul road to be used by vehicular or non-vehicular traffic without the use of an effective oil and chip surface with appropriate load-bearing base as required to control dust emissions from the ash haul road.

2. The Permittee shall not cause, permit, or allow the ash haul road to be used by vehicular or non-vehicular traffic unless the ash haul road has been watered within the most recent 24 hours. This requirement does not apply in the event that the ash haul road has received measurable precipitation within the most recent 24 hours.

C. Monitoring/Recordkeeping/Reporting Requirements

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

The Permittee shall maintain records of dates and type of control measures adopted pursuant to Condition XV.A.2. [A.A.C. R18-2-306.A.4]
2. Bi-Weekly Opacity Survey

a. Bi-Weekly Monitoring Requirements [A.A.C.R18-2-306.A.3.c]

(1) A certified Method 9 observer shall conduct a bi-weekly survey of visible emissions from the fugitive dust sources. The Permittee shall keep a record of the namePermit #53418 116 of 131 August 15, 2012

Tucson Electric Power-SGS of the observer, the date on which the observation/survey was conducted, and the results of the observation/survey.

(2) If the observer sees a plume from a non-point source that on an instantaneous basis appears to exceed the applicable opacity standard, then the observer shall, if practicable, take a six-minute Method 9 observation of the plume. If the six-minute opacity of the plume is less than the applicable standard, the observer shall make a record of the:

(a) Location, date, and time of the observation; and

(b) The results of the Method 9 observation.

(3) If the six-minute opacity of the plume exceeds the applicable opacity standard, then the Permittee shall:

(a) Adjust or repair the controls or equipment to reduce opacity to below the applicable standard; and

(b) Report it as an excess emission under Section XII.A of Attachment” A”. [A.A.C.R18-2-306.A.3.c]

3. Dust Control Practice

The Permittee shall maintain and implement a site dust control practice. The Permittee shall keep the dust control practice readily available for inspection. The dust control practice will be a living document that will be updated as needed to allow for practical changes at the facility.

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R-18-2- 604.A, B, -605, -606, -607, -614, and -804.B.

XVI. ABRASIVE BLASTING

A. Emission Limits and Standards

1. The Permittee shall not cause or allow sandblasting or other abrasive blasting without minimizing dust emissions to the atmosphere through the use of good modern practices. Good modern practices include: [A.A.C. R18-2-726] a. wet blasting;

b. effective enclosures with necessary dust collecting equipment; orPermit #53418 117 of 131 August 15, 2012

Tucson Electric Power-SGS c. any other method proposed by the Permittee and as approved by the Director.

2. The Permittee shall not cause, allow or permit visible emissions from sandblasting or other abrasive blasting operations in excess of 20 percent opacity measured in accordance with EPA Reference Method 9. [A.A.C. R18-2-702.B.1]
B. Monitoring/Recordkeeping/Reporting Requirements

Each time an abrasive blasting project is conducted, the Permittee shall log in ink or in an electronic format, a record of the: [A.A.C. R18-2-306.A.3.c]

1. The date the project conducted;

2. The duration of the project; and

3. Type of control measures employed.

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R-18-2- 702.B.1 and -726.

XVII. USE OF PAINTS

A. Emission Limits and Standards

While performing spray painting operations, the Permittee shall comply with the following requirements:

1. The Permittee shall not conduct or cause to be conducted any spray painting operation without minimizing organic solvent emissions. Such operations other than architectural coating and spot painting, 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]

2. The Permit shall not either: [A.A.C. R18-2-727.B]

a. Employ, apply, evaporate or dry any architectural coating containing photochemically reactive solvents for industrial or commercial purposes; or b. Thin or dilute any architectural coating with a photochemically reactive solvent.

3. For purposes of Conditions XVII.A.2 and 5, a photochemically reactive solvent shall be any solvent with an aggregate of more than 20 percent of its total volume composed of the chemical compounds classified in paragraphs a. through c. of this subsection, or which exceeds any of the following percentage composition limitations, referred to the total volume of solvent: [A.A.C. R18-2-727.C]Permit #53418 118 of 131 August 15, 2012

Tucson Electric Power-SGS a. A combination of the following types of compounds having an olefinic or cycle-olefinic type of unsaturation - hydrocarbons, alcohols, aldehydes, esters, ethers, or ketones: five percent.

b. A combination of aromatic compounds with eight or more carbon atoms to the molecule except ethylbenzene: eight percent.

c. A combination of ethylbenzene, ketones having branched hydrocarbon structures, trichloroethylene or toluene: 20 percent.

4. Whenever any organic solvent or any constituent of an organic solvent may be classified from its chemical structure into more than one of the groups or organic compounds described in Conditions XVII.A.3, it shall be considered 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]

5. Visible emissions from spray painting operations shall not have opacity greater than 20 percent, measured in accordance with EPA Reference Method 9. [A.A.C. R18-2-702.B.1]

B. Monitoring/Recordkeeping/Reporting Requirements

1. Each time a spray painting project is conducted, the Permittee shall keep a record of the following: [A.A.C. R18-2-306.A.3.c]

a. The date the project was conducted;

b. The duration of the project;

c. Type of control measures employed; and

d. Material Safety Data Sheets for all paints and solvents used in the project.

2. Architectural coating and spot painting projects shall be exempt from the recordkeeping requirements of Condition XVII.B.1.

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R18-2-702.B.1, -727, and SIP Provision R9-3-527.C.

XVIII. SOLVENT CLEANING / DEGR EASING, DIPPING OPERATIONS

A. Emission Limits and Standards [A.A.C. R18-2-730.F]

The Permittee shall process, store, use, and transport materials including solvents or volatile compounds in such a manner and by such means that they will not evaporate, leak, escape, or be otherwise discharged into the atmosphere so as to cause or contribute to air pollution. Where means are available to reducePermit #53418 119 of 131 August 15, 2012

Tucson Electric Power-SGS effectively the contribution to air pollution from evaporation, leakage, or discharge, the installation and usage of such control methods, devices, or equipment shall be mandatory.

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R-18-2-730.F.

XIX. MOBILE SOURCES

A. Emission Limits and Standards

1. Classification [A.A.C. R18-2-801]

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.

2. Off-road Machinery [A.A.C. R18-2-802]

The Permittee shall not cause, allow, or permit to be emitted into the atmosphere from any off-road machinery, smoke 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. Off-road machinery shall include trucks, graders, scrapers, rollers and other construction and mining machinery not normally driven on a completed public roadway.

3. Roadway and Site Cleaning Machinery [A.A.C. R18-2-804.A]

The 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.

B. Monitoring/Recordkeeping/Reporting Requirements

The Permittee shall keep a record of all emissions related maintenance activities performed on all mobile sources (as defined at Condition XIX.A.1) that are stationed at the facility. [A.A.C. R18-2-306.A.3.c]Permit #53418 120 of 131 August 15, 2012

Tucson Electric Power-SGS C. Permit Shield [A.A.C. R18-2-325]

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R-18-2-801, -802, and -804.A.

XX. DEMOLITION/RENOVATION

A. Emission Limits and Standards

The Permittee shall comply with all applicable requirements of 40 CFR Part 61 Subpart M (National Emissions Standards for Hazardous Air Pollutants - Asbestos). [A.A.C. R18-2-1101.A.8]

B. Monitoring/Recordkeeping/Reporting Requirements

The Permittee shall comply with all applicable monitoring, recordkeeping, and reporting requirements of 40 CFR Part 61 Subpart M (National Emissions Standards for Hazardous Air Pollutants - Asbestos). The required records include the “NESHAP Notification for Renovation and Demolition Activities” form and all supporting documents. [A.A.C. R18-2-1101.A.8]

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

Compliance with the Conditions of this Section shall be deemed compliance with A.A.C.R-18-2-1101.A.8.Permit #53418 121 of 131 August 15, 2012

Tucson Electric Power-SGS ATTACHMENT “C”: EQUIPMENT LIST Air Quality Control Permit No. 53418 for

TUCSON ELECTRIC POWER COMPANY – Springerville Generating Station

Equipment Description Size Serial Number Model DATE OF Commercial Operation/ Manufacture Applicability of NSPS Applicability of NESHAP

Unit 1 Boiler Tangentially fired, single drum, reheat, controlled circulation sub critical
steam generating unit 387 MW, net SGS-8-1-004 Combustion Engineering Inc. 1/30/78 (Commenced construction) 5/1/85 (Commercial

operating) Yes, 40 CFR Subpart D No

Unit 2 Boiler Tangentially fired, single drum, reheat, controlled circulation sub critical
steam generating unit 390 MW, net SGS-8-1-004 Combustion Engineering Inc. 1/30/78 (Commenced construction) 6/1/90 (Commercial

operating) Yes, 40 CFR Subpart D No

Unit 3 Boiler Steam generating unit wall fired, natural circulation, sub critical, single drum 417 MW, net 65-100019-00 Foster Wheeler ...7/20/2006 (Commenced

operating) Yes, 40 CFR Subpart Da NoPermit #53418 122 of 131 August 15, 2012

Tucson Electric Power-SGS Description Size Serial Number Model DATE OF Commercial Operation/ Manufacture Applicability of NSPS Applicability of NESHAP Equipment

Unit 4 Boiler Steam generating unit wall fired, natural circulation, sub critical, single drum 426 MW, net 65-119154-00 Foster Wheeler ...12/17/2009 (Commenced

operating) Yes, 40 CFR Subpart Da NA

Auxiliary

Boiler Oil fired with superheater for two unit cold start-up 113 MMBtu/hr AS-5-2-001 Zurn Industries 01/30/78 (Commenced construction) 1984 (Commercial

operating No NA

Emergency diesel generator Unit 1 and Unit 2 Diesel generator with 650 gallon fuel oil tank 1300 HP 16E0007459 Neil Detriot – 91637306 5/1/85 (Commercial

operating) No NA

Emergency Diesel Fire Pump for Unit 1 and Unit 2 Cummins 4cycle, inline, 6 cylinder diesel 340 HP @ 2100 rpm 60507610 NT855-F4 1999 (manufacture) No Yes, Subpart ZZZZ

Emergency Diesel Fire Pump for Unit 3 Caterpillar

375 HP 6TB22509 3406 2004 (manufacture) No Yes, Subpart ZZZZ

Emergency Diesel Fire Pump for Unit 4 John Deere4 cycle, inline, 4 cylinder diesel 475 HP RG6125A016084 6125AF001 2007 (manufacture) Yes, Subpart IIII Yes, Subpart ZZZZ

Cooling Tower 1 Steam unit cooling
tower Recirculation
rate 176,000 gal/min PGS-9-1 NA NA No NAPermit #53418 123 of 131 August 15, 2012

Tucson Electric Power-SGS Description Size Serial Number Model DATE OF Commercial Operation/ Manufacture Applicability of NSPS Applicability of NESHAP Equipment

Cooling Tower 2 Steam unit cooling
tower Recirculation
rate 176,000 gal/min PGS-9-1 NA NA No NA

Cooling Tower 3 Steam unit cooling
tower Recirculation rate 200,000 gal/min ICT8463- CWHH31-5-11- 28 CWHH31-5- 11-28 NA No NA

Cooling Tower 4 Steam unit cooling
tower Recirculation rate 200,000 gal/min ICT-CW8832-5- 28-11 CW8832-5- 28-11 NA No NA

Coal Preparation Plant Storage silos, unloading system, sampling system, crushers,
conveyor, transfer points, transfer towers, and reclaim 8,200,000 tons/yr Figure 1-1 Site Layout NA NA Yes, 40 CFR Subpart Y NA

Lime Handling Unit 1 and Unit 2 Storage silos, lime unloading, lime feed bins 166,400 ton/yr AS-6-1-001

AS-6-2-001

AS-6-3-001 NA NA No NAPermit #53418 124 of 131 August 15, 2012

Tucson Electric Power-SGS Description Size Serial Number Model DATE OF Commercial Operation/ Manufacture Applicability of NSPS Applicability of NESHAP Equipment

One hopper and three completely

enclosed

belts - 24” wide by 256’7 1/16” long -30” wide by 121’10 9/16” long -24” wide by 31’4 1/16” long NA Sveldala Eastern Made NA No NA

Lime Handling Unit 3 and

Unit 4 Storage silos, lime unloading, lime feed bins 62,400 ton/yr NA NA NA No NA

Ash Handling Unit 1 Unit 2 -- -- NA NA NA No NA

Ash Handling Unit 3 Unit 4 Storage silos, ash

truck loading 836,182 ton/yr NA NA NA No NA

DCL CFM Dust Filter

Modlue Pulse-jet cleaned, cartridge type in-line dust collector Filtering Area:

329 sf. NA CFM 330 DCL: distributed by Process & Power/Texas, Inc. TBD

NA NA

Nonpoint

sources -- -- -- -- -- NA NA

Sand Blasting -- -- -- -- -- NA NAPermit #53418 125 of 131 August 15, 2012

Tucson Electric Power-SGS Description Size Serial Number Model DATE OF Commercial Operation/ Manufacture Applicability of NSPS Applicability of NESHAP Equipment

Spray Painting -- -- -- -- -- NA NA

Mobile Sources -- -- -- -- -- NA NA

Demolition and Renovation -- -- -- -- -- NA NA

Air Conditioner Maintenance -- -- -- -- -- NA NA

Continuous Emission Monitors

Steam

Unit NO x Monitor SO 2 Monitor CO Monitor Diluent Monitor Opacity Monitor Flow Monitor

Unit 1 NO x - Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified SO 2 - Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified NA CO 2 – Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified Opacity - Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified Flow – Installed/Certified

PLC – Installed/Certified

DAHSInstalled/Certified

Unit 2 NO x - Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified SO 2 - Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified NA CO 2 – Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified Opacity - Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified Flow – Installed/Certified

PLC – Installed/Certified

DAHSInstalled/CertifiedPermit #53418 126 of 131 August 15, 2012

Tucson Electric Power-SGS

NO x Monitor SO 2 Monitor CO Monitor Diluent Monitor Opacity Monitor Flow Monitor Steam

Unit

Unit 3 NO x - Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified SO 2 - Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified COInstalled/Certified

PLCInstalled/Certified

DAHSInstalled/Certified CO 2 – Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified Opacity - Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified Flow – Installed/Certified

PLC – Installed/Certified

DAHSInstalled/Certified

Unit 4 NO x - Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified SO 2 - Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified COInstalled/Certified

PLCInstalled/Certified

DAHSInstalled/Certified CO 2 – Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified Opacity - Installed/Certified

PLCInstalled/Certified

DAHSInstalled/Certified Flow – Installed/Certified

PLC – Installed/Certified

DAHSInstalled/Certified

Air Pollution Control Equipment
Equipment Description Size Serial Number Model Date of Commercial Operation/

Manufacture

Sulfur Dioxide Removal System for Unit 1 Dry flue gas desulfurization for Steam Unit 1 150 GPM each rotary atomizer (3), 11,500 RPM, 600 HP drive motor with a 2 HP oil pump motor per unit Joy/Niro is now owned by B&W 1/30/78 (Commenced construction)

Sulfur Dioxide Removal System for Unit 1 Dry flue gas desulfurization for Steam Unit 1 (1) 150 gpm,11,500 RPM, drive, 600 HP drive motor with a 2 HP oil pump motor per unit N/A B&W Nov. 2004

Sulfur Dioxide Removal System for Unit 2 Dry flue gas desulfurization for Steam Unit 2 150 GPM each rotary atomizer (3), 11,500 RPM, 600 HP drive motor with a 2 HP oil pump motor per unit Joy/Niro is now owned by B&W 1/30/78 (Commenced construction)

Sulfur Dioxide Removal System for Unit 2 Dry flue gas desulfurization for Steam Unit 2 (1) 150 gpm,11,500 RPM, drive, 600 HP drive motor with a 2 HP oil pump motor per unit N/A B&W April 2005Permit #53418 127 of 131 August 15, 2012

Tucson Electric Power-SGS Description Size Serial Number Model Date of Commercial Operation/

Manufacture Equipment

Sulfur Dioxide Removal System for Unit 3 Dry flue gas desulfurization for Steam Unit 3 (6) 34 gpm,12,185 RPM, drive, 250 HP drive motor NA Alstom July 2006

Sulfur Dioxide Removal System for Unit 4 Dry flue gas desulfurization (6) 34 gpm,12,185 RPM, drive, 250 HP drive motor NA Alstom December 2009

Particulate Matter Removal System for

Unit 1 Baghouses 1,320,000 acfm at 160 °F (2)

NA Joy 1/30/78 (Commenced construction)

Particulate Matter Removal System for Unit 2 Baghouses 1,320,000 acfm at 160° F (2)

NA Joy 1/30/78 (Commenced construction)

Particulate Matter Removal System for Unit 3 Fabric filter baghouse 1,705,000 acfm at 175F inlet

NA Alstom July 2006

Particulate Matter Removal System for Unit 4 Fabric filter baghouse 1,705,000 acfm at 175F inlet LKP2x8SS5x26.5- IP2x18x25 (900) LKP2x8SS5x26.5- IP2x18x25 (900) December 2009

Unloading Transfer Tower Collector 12,000 cfm at 70°F 09285A JohnsonMarch Model #PCT 12-10 Secondary Crusher Enclosure Dust Collector (DC-2) 27,950 cfm at 70°F 002858 JohnsonMarch Model #PCT 13-17 Sampler Enclosure Dust Collector 9,400 cfm at 70° F 09285C JohnsonMarch Model #PCT 10-10 01/30/78 (Commenced construction)Permit #53418 128 of 131 August 15, 2012

Tucson Electric Power-SGS Description Size Serial Number Model Date of Commercial Operation/

Manufacture Equipment

Silos Feed Tower Collector (DC-4) 27,950 cfm at 70°F 09285D JohnsonMarch Model #PCT 10-13- 17

Silo Feed Tower Collector (DC-4A) 27,950 cfm at 70°F 09285B JohnsonMarch Model #PCT 10-13- 17

Unit 1 & 2 – Dust Processing Center Dust Collector 2,325 cfm Airtrol Airtrol, Inc. 68BRST72 TBD

Unit 3 - Transfer Tower # 1& 2 Dust Collector 24,000 cfm 9-FC-MK001 Airtrol, Inc.

276RRWT144 July 2006

Unit 3 - Transfer Tower # 3 Dust Collector 18,750 cfm 9-FC-MK006 Airtrol, Inc.

232RRWT144 July 2006 Coal Handling System

Unit 3 - Transfer Tower # 4 / Silo Dust Collector 35,075 cfm 9-FC-MK016 Airtrol, Inc.

428RRWT144 July 2006

Unit 3 - Crusher Tower Dust Collector 34,975 cfm 9-FC-MK012 Airtrol, Inc.

428RRWT144 July 2006

Unit 4 – Silo Dust Collector 22850 cfm 4-fc-mk212 AirCure Dec 2009

Unit 4 – Transfer Tower Dust Collector 13550 cfm 4-fc-mk-172 AirCure Dec 2009

Unit 4 – Transfer Tower Dust Collector 26750 cfm 4-fc-mk-162 AirCure Dec 2009 Coal Handling System

Unit 4 – Dust Processing Center Dust Collector 24700 cfm 4-fc-mk-022 AirCure Dec 2009Permit #53418 129 of 131 August 15, 2012

Tucson Electric Power-SGS Description Size Serial Number Model Date of Commercial Operation/

Manufacture Equipment

Lime Silos Collector -- 345-78-4- 3005-00 Fuller Co. 01/30/78 (Commenced construction
Baghouses at Water Treatment Silos (4) -- 3710(1); 3710(2)
3710(3); 3710(4) EVO Corp.

Model #84WBO48C Lime Handling System- Unit 1 and Unit 2

Filter Baghouse 15,000 ACFM -- -- 1999

Lime Silos Collector 500 cfm 66315-001-1 MAC MTV2 July 2006 Lime Handling System- Unit 3 and Unit 4 Baghouses at Water Treatment Silos (2) 6101 and 6600 84-BF-042-C July 2006 And Dec 2009

Drift Eliminator on Cooling Tower Unit 3 High-efficiency drift eliminator 11 Cells 2”High, 48’ x 48’ N/A CDX-080 Brentwood July 2006

Drift Eliminator on Cooling Tower Unit 4 High efficiency drift eliminator 11 Cells 2”High, 48’ x 48’ N/A CDX-080 Brentwood Dec 2009

Ash Handling System Units 3 Units 3 Fly Ash Silo Dust Collector 10,271 ACFM N/A IAC-144TBBV1-132:S6 July 2006

Ash Handling System Units 4 Units 4 Fly Ash Silo Dust Collectors A&B 6,248 ACFM N/A IAC-120TBBVT-100:S6 Dec 2009

Mercury Removal System Unit 4 Activated Carbon Injection 120 cuft per hour MT1600 07-3026 12/17/2009

Four – Evaporative Water Spray Systems Evaporative Water Sprays on Ponds 1, 2, & 3 for freeboard control. 900 gpm per unit x 4 pumps B738FO78-1, B738FO78-2, B738FO79-1, B738FO79-2 3796 March 2009Permit #53418 130 of 131 August 15, 2012

Tucson Electric Power-SGS ATTACHMENT "D": PHASE II ACID RAIN PROVISIONS Air Quality Control Permit No. 53418

For TUCSON ELECTRIC POWER PLANT - Springerville Generating Station

1. Statement of Basis

Statutory and Regulatory Authorities: In accordance 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”.

2. SO 2 Allowance Allocations and NO x Requirements for each affected unit

2012 2013 2014 2015 2016 2017

6099 6099 6099 6099 6099 6099 6099 Unit 1

NO x limit Unit 1 shall be subject to the applicable emission limitation, under 40 CFR 76.7(a)(1), of 0.40 lb/MMBtu of heat input on annual average basis.

2012 2013 2014 2015 2016 2017

5765 5765 5765 5765 5765 5765 5765 Unit 2

NO x limit Unit 2 shall be subject to the applicable emission limitation, under 40 CFR 76.7(a)(1), of 0.40 lb/MMBtu of heat input on annual average basis.Permit #53418 131 of 131 August 15, 2012

Tucson Electric Power-SGS 2012 2013 2014 2015 2016 2017

NA NA NA NA NA NA NA Unit 3

NO x limit Unit 3 shall be subject to the applicable emission limitation, under 40 CFR 76.7(a)(1), of 0.40 lb/MMBtu of heat input on annual average basis.

* The number of allowances allocated to Phase II affected units by U.S. EPA may change in a 1998 revision to 40 CFR part 73 Tables 2, 3, and 4. In addition, the number of allowances actually held by an affected source in a unit account may differ from the number allocated by U.S. EPA. Neither of the aforementioned conditions necessitates a revision to the unit SO 2 allowance allocations identified in this permit (See 40 CFR 72.84).

2012 2013 2014 2015 2016 2017

NA NA NA NA NA NA NA Unit 4

NO x limit Unit 4 shall be subject to the applicable emission limitation, under 40 CFR 76.7(a)(1), of 0.40 lb/MMBtu of heat input on annual average basis.

3. Comments, Notes and Justifications

Tucson Electric has early-elected for NO x requirements on Unit 1 and Unit 2.

4. 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 acid rain permit application (OMB No. 2060-0258) signed by the Designated Representative Charles Komadina.