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# OAR Box 

# 1802 Prepped by Charmelle Mathews



## Document

Number: 

# 70 ) IV-E-6 4 Docket Number: 

# A-90-3 7

Printed 11/4/200811:58:00 AM

Sheet 70 of 117P. 2 

# A-IO-^T JSL- E - <*>* Jul y 31,200 0

SUBJECT : Septembe

r 30,199 8 Meetin g Betwee

n Powe r Industr y an dth e Environmenta

l Protectio n Agency FROM : Denni s Crumple r Integrate dImplementatio n Group , ITPID , MD-1 2 TO : Air

an dRadiatio n Docke

t #A-90-3 7 On Septembe

r 30,1998 , Bob Perciasepe , Assistan t Administrator

fo r Ai r fromEPA' s Office o f Air andRadiatio n (OAR

) an dEP A staf f met wit h representative s o f

electri c utilit

y industr y in Washington , DC . A

n attende e lis t

i s attached . The meetin g wa s hel da t th e reques t

o f th e powe r industr y to allo w the

mt p present concern s they hav e wit

h th e numerou s regulator

y efforts b y EP

A tha t present in their opinio n conflicting objectives . Their basi c contentio n wa s tha t EPA' s regulation s t o implemen t President' s directiv e o n th e ne w Nationa l Ambien t Air Qualit y Standard s fo

r ozone an dfine particulat

e matter , th e final NS RRefor m(no w "NS R Improvement" ) rulemakin g an dupcoming requirement s se t ou t b y th e aci drai n progra

mcould forc e thema s a

n industr y to put NO x control s o n plant s tha t migh t otherwis e hav e ashorte

r lif e expectancy . It

i s more cos t

effective t o contro l younge r plants . Thi s kindof

investmen

t migh t preven t th e constructio n o f

mor e efficien t plant s which wouldb e counte r t o th e administration s long ter mgoal s t o promot

e voluntar y reduction s o f

greenhous e gases . The

y specifically asked fo r relie f fromNe w Sourc e Review . Bob Perciasep e conclude dtha t OA Rwoul dwor

k wit h th e industr y to identif y example s wher

e complianc e wit

h NS Ra s i t

migh t b e "reformed " migh

t compet e wit h th e othe r programmati c objectives . cc : Pa mSmit h (MD-12 )

? . .- ) TM EPAAI R )OCK[- TP. 3



## Attendees : Bo b Perciasepe , AA , OAR , EP A Pau l Stolpman , Director , OA P EP A Sa mNapolitano , OAP , OAR , EP A Ala n Eckert , OGC , EP

A Denni s Crumpler , OAQPS , OAR , EP A vi aphon e Davi dSolomon , OAQPS , OAR , EP A vi aphon e Jo n Devine , OGC , EP

A Ann aMari e Woods , OPAR , OAR , EP A Bil l Tyndall , Cinerg y Eri c Kuhn , Cinerg y Charle s Goodman , Souther n Compan y Service s Jen e Robinso n Illinoi s Power Co . Ro y Hamme , Duk

e Power C o Janet Watts , Tennesse e Valley Authorit y Rei dClemmer , Pennsylvani aPowe r & Ligh t C o John Kinsman , Ediso n Electri c Institute John Novak , Ediso n Electri c Institute Bil l Zang , Ediso n Electri c Institute Mik e Miller , Electri c Power

Researc h Institute And y Va n Horn , Consultant , EPR

I Chri s McKinney , Wisconsi n Electri c Powe r Co .

OA P = Office o f

Atmospheri c Program s OPA R= Office o f

Polic y Analysi s andReview OAQP S = Office o f

Air Qualit y Plannin g an

dStandard s



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## ^P. 5

From : To : Date : Subject : SA M NAPOLITAN O

Perciasepe-Rober

t 9/30/9 8 5:54p m Utilit y Meetin g Reca p Afte ryo u left , w e spen t mor e tim e goin g ove rWEPCO , plannin g th e nex t meeting , an d talkin g abou t th e proces s arrangements . W e agree d tha t th e nex

t meetin g shoul d b

e fo r 2 hour

s (1:0 0 t o 3:00) o n Octobe r 22 : 1s t hour : goin g ove ri n detai l ho w WEPCO hinder

s carbo n reduction s a t powe rplant s (throug h representative cas e studies ) an d havin g th e powe rindustr y summarizin g it s comments o n th e NS R proposa l (submitte d b y Octobe r8th ) 2n d hour : discussin g mor e concretel y ho

w th e strande d investmen t issu e play s ou t fo rspecifi c utilitie s - a t least fo r Souther n Compan y an d PSE& G situations
. Th e utilitie s ar e worrie d abou t usin g thei rspecifi c unit s i n discussion s wit h us , becaus e o f what i t reveal s t o th e competitio n i n th e roo m an d potentia l anti-trus t issues
. TV A volunteere d t o com e i n t o se e u s alon e an d la y thi s ou t (m y gues s i s tha t Souther n an d PSE&G woul d als o com e i n alon e i f asked)
. Th e utilitie s sai d the y woul d like t o conside rtalkin g a t th e aggregat e leve l fo rthei rsystem s i n th e meeting , us e representativ e mode l plants , o ruse som e o f th e wor k tha t w e have don e i n th e past o n thi s issu e a s a poin t o f departur e - I'l l b e talkin g mor

e wit h the m late rthi s week
. I thin k th e bes t thin g i s allow the m t o tal k i n th e meetin g a

t th e aggregat e leve l fo rthei rfirms , an d contrast tha t t o what w e have see n i n ou ranalysi s an d elici t thei rreactio n t o that , the n g o fro m ther e t o thin k abou t reasonabl e thing s t o d o next . I recommen d that w e hav e a t least TV A com e i n alon e t o mee

t wit h staf f t o explai n thei rthinking , an d yo u also , i f yo u have time
. Pleas e ge t bac k t o me wit h you r reactio n o n wha

t yo u wan t t o d o soon , i f yo u can . I lai d ou t ou rvie w o f how we' d like to procee d initiall y i n thes e discussion s - EP A i s hearin g thei rviews a t meeting s that the y request (whic h doesn t lea d u s int o FACA) , an d then , i f w e fin d we'v e go t som e goo d idea s comin g ou t o f this , figure ou t ho

w t o includ e a broade rgrou p o f othe rstakeholder s i n discussions , whic h may , o rma y not lea d t o a FAC A process . I n th e meantime , w e als o wer

e goin g t o tal k

t o othe rstakeholder

s abou t th e sam e type s o f issue s as w e d o i n th e regula rcours e o f ou rrulemakin g activities
. Th e powe rcompanie s an d Dir k like d thi s approach
. I n keepin g wit h that , the

y wante d t o know , i f you' d lik e t o com e ove r t o EE I fo r th e nex t meeting . Th e nex

t questio n is , d o ____

_wan t t o invite som e othe r groups i n t o hea r thei r views , o r hav e u s pursu e that a

t th e Seitz/Stolpma n leve l a

t thi s point . Janet Anderso n als o sai d tha t sh e wants t o follo w u p wit h the m i n th e futur e o n th e issue s tha t yo u raise d o n ho w t o addres s uncertainty , o rmak e i t les s painfu l fo rthe m i n som e way . Overall , I thin k

th e sessio n wen t prett

y wel l i n term s o f buildin g a relationshi p wit h th e powe rindustr y representative s as a ste p t o a reasonabl e dialo g process . M y sens e i s tha t the y clearl y sa w tha t yo u were tryin g t o wor k wit h the m t o understan d thei rconcern s an d facto rthe m int o effectiv e environmenta l programs . Tomorrow , I'l l d o a post-morte m wit h Dirk , Dav e Soloman , an d Bil l White , an d cal l AEP
. Wil l repor t back
. CC : .Brenner-Rob , Stolpman-Paul , Wegman-Lydi a



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