May 17, 2011

James M. Parker
PPL Montana, LLC Colstrip Steam Electric Station 580 Willow Ave., P.O. Box 38 Colstrip, MT 59323

RE: Draft Title V Operating Permit # OP0513

- 07

Dear Mr. Parker :

The Department of Environmental Quality has prepared the enclosed Draft Operating Permit # OP0513

- 07

, for PPL Montana, LLC, Colstrip Steam Electric Station , located in Section 34, Township 2 North, Range 41 East, in Rosebud County, Montana . Please review the cover page of the attached permit for information per taining to the action taking place on Permit # OP0513

- 07

.

If you have any questions, please contact Skye Hatten , the permit writer, at (406) 444

- 5 287 or by email at

shatten @mt.gov.

Sincerely,

Vickie Walsh Air Permitting Program Supervisor

Air Resource s Management Bureau (406) 444

- 9741 Skye Hatten, P.E. Environmental Engineer Air Resources Management Bureau (406) 444

- 5 287

VW: SH

Enclosure

Cc : Christopher Ajayi, US EPA Region VIII 8P

- AR Stephen J. Christian, PPL Montana, LLC, A lternative Responsible Official Neil Dennehy, PPL Montana, LLC, Facility Contact PersonOP0513

- 07 i Draft : 05/17/2011

State of Montana Department of Environmental Quality Helena, Montana 59620

AIR QUALITY OPERATING PERMIT NUMBER OP0513

- 07

Renewal Application Received: March 25 , 2010 Application Deemed Administratively Complete: March 25, 2010 Application Deemed Technically Complete: March 25, 2010

AFS Number: 030

- 087

- 0008A

Draft Issue Date: May 17, 2011 Proposed Issue Date:

End of EPA 45

- day Review:

Date of Decision:

Effective Date: Expiration Date:

In accordance with the Montana Code Annotated (MCA) Sections 75

- 2

- 217 and 218, and the Administrative Rules of Montana (ARM) Title 17, Chapter 8, Subchapter 12, Operating Permit Program,
ARM 17.8.1201, et seq

.,

PPL Montana, LLC

– Colstrip Steam Electric Station

Section 34, Township 2 North, Range 41 East, in Rosebud County, Montana

580 Willow Ave., P.O. Box 38 Colstrip, MT 59323

hereinafter referred to as “PPL” , is authorized to operate a stationary source of air contaminants consisting of the emission units described in this permit. Until this permit expires or is modified or revoked, PPL is allowed to discharge air pollutants in accordance with the conditions of this permit. All conditions in this permit are fe derally and state enforceable unless otherwise specified. Requirements which are state only enforceable are identified as such in the permit. A copy of this permit must be kept on site at the above named facility.

Permit Issuance and Appeal Process : In accordance with ARM 17.8.1232, the Department of Environmental Quality (Department) is providing a public comment period from May 17, 2011 , to June 16, 2011 , to accept comments on this draft permit. Any member of the public, i ncluding representatives of the facility, desiring to comment on this draft permit must submit all comments to the Department by
June 16, 2011 , to be considered. Comments may address the Department analysis and determination or

information s ubmitted by the applicant. A public hearing regarding issuance of this permit may be requested by submitting a written request to the Department within the public comment period. The Department intends to issue the proposed operating permit after the com ment period has expired and after any required public hearing. The proposed permit will be sent to the United States Environmental Protection Agency (EPA). The EPA is allowed a 45

- day review period on the proposed permit. After the EPA comment period ha s expired, the Department intends to issue a decision on the permit. In

accordance with Section 75

- 2

- 218, MCA, the Department decision regarding issuance of an operating permit is not effective until 30 days have elapsed from the date of the decision. Th e decision may be appealed to the Board of Environmental Review (Board) by filing a request for a hearing within 30 days after the date of decision. For more information, please contact the Department at (406) 444

- 3490.OP0513

- 07 ii Draft : 05/17/2011 Montana Air Quality Operating Pe rmit Department of Environmental Quality

SECTION I. GENERAL INFORMATION

................................ ................................ .......................... 1

SECTION II. SUMMARY OF EMISSION UNITS

................................ ................................ .............. 2

SECTION III. PERMIT CONDITIONS

................................ ................................ ................................ .. 3

A. F ACILITY

- W IDE

................................ ................................ ................................ ....................... 3

B. EU001 AND EU002

– T ANGEN TIAL C OAL F IRED U NITS 1 & 2

................................ ................ 7

C. EU003 AND EU004

– T ANGENTIAL C OAL F IRED U NITS 3 & 4

................................ .............. 12

D. EU005

– A UXILIARY P ROPANE B OILER

................................ ................................ ................. 21

E. EU006

– B UILDING H EATER B OILER

................................ ................................ ..................... 23

F. EU007, EU008, AND EU009

– C OAL H ANDLING S YSTEMS (U NITS 1 & 2

– E NCLOSED

CONVEYORS

, DUST SU PPRESSANT

, TELESCOPIC CHUTE ), C OAL H ANDLING S YSTEMS (U NITS 3 & 4

– SILOS

, DISTRIBUTION BIN

, SURGE PILE TUNNEL

, CRUSHING AND

SAMPLING HOUSE

, AND VACUUM CLEANING SYSTEM ) AND C OAL P ILES

.............................. 25

G. EU0 10

– E MERGENCY D IESEL G ENERATORS AND EU011

- I NTERNAL C OMBUSTION

E NGINES ( VEHICLES )

................................ ................................ ................................ .............. 27

H. EU012

- L IME H ANDLING S YSTEM

................................ ................................ ........................ 29

I. EU0 13

- P LANT R OADS ; EU014

– P ROCESS P ONDS

................................ .............................. 31

J. EU015

– U NDERGROUND G ASOLINE T ANK

................................ ................................ ........... 33

K. EU016

– A LTERNATE F UEL L OADING S YSTEMS (S Y N C OAL AND P ETROLEUM C OKE )

........ 34

L. EU017

– T ANGENTIAL C OAL F IRED U NITS 1

- 4 M ERCURY E MISSIONS

................................ . 36

M. EU018

– M ERCURY O XIDIZER /S ORB ENT H ANDLING S YSTEMS (U NITS 1

- 4)

........................ 38

SECTION IV. NON

- APPLICABLE REQUIREME NTS

................................ ................................ ..... 40

A. F ACILITY

- W IDE

................................ ................................ ................................ ..................... 40

B. E MISSION U NITS

................................ ................................ ................................ .................... 41

SECTION V. GENERAL PERMIT CONDI TIONS

................................ ................................ ........... 42

A. C OMPLIANCE R EQUIREMENTS

................................ ................................ ............................... 42

B. C ERTIFICATION R EQUIREMENTS

................................ ................................ ............................ 42

C. P ERMIT S HIELD

................................ ................................ ................................ ...................... 43

D. M ONITOR ING

, R ECORDKEEPING

, AND R EPORTING R EQUIREMENTS

................................ ..... 44

E. P ROMPT D EVIATION R EPORTING

................................ ................................ ........................... 45

F. E MERGENCY P ROVISIONS

................................ ................................ ................................ ...... 45

G. I NSPECTION AND E NTRY

................................ ................................ ................................ ........ 46

H. F EE P AYMENT

................................ ................................ ................................ ........................ 46

I. M INOR P ERMIT M ODIFICATIONS

................................ ................................ ........................... 47

J. C HANGES N OT R EQUIRING P ERMIT R EVISION

................................ ................................ ...... 47

K. S IGNIFICANT P ERMIT M ODIFICATIONS

................................ ................................ .................. 48

L. R EOPENING FOR C AUSE

................................ ................................ ................................ ......... 48

M. P ERMIT E XPIRATION AND R ENEWAL

................................ ................................ ..................... 49

N. S EVERABILITY C LAUSE

................................ ................................ ................................ .......... 49

O. T RANSFER OR A SSIGNMENT OF O WNERSHIP

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

P. E MISSIONS T RADING

, M ARKETABLE P ERMITS

, E CONOMIC I NCENTIVES

.............................. 50 Q. N O P ROPERTY R IGHTS C ONVEYED

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

R. T ESTING R EQUIREMENTS

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

S. S OURCE T ESTING P ROTOCOL

................................ ................................ ................................ . 50OP0513

- 07 iii Draft : 05/17/2011

T. M ALFUNCTIONS

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

U. C IRCUMVENTION

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

V. M OTOR V EHICLES

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

W. A NNUAL E MISSIONS I NVENTORY

................................ ................................ .......................... 51

X. O PEN B URNING

................................ ................................ ................................ ...................... 51

Y. M ONTANA A IR Q UALITY P ERMITS (MAQ P)

................................ ................................ ......... 51

Z. N ATIONAL E MISSION S TANDARD FOR A SBESTOS

................................ ................................ . 52

AA. A SBESTOS

................................ ................................ ................................ .............................. 52

BB. S TRATOSPHERIC O ZONE P ROTECTION

– S ERVICING OF M OTOR V EHICLE A IR
C ONDITIONERS

................................ ................................ ................................ ....................... 52

CC. S TRATOSPHERIC O ZONE P ROTECTION

– R ECYCLING AND E MISSION R EDUCTIONS

.............. 52

DD. E MERGENCY E PISODE P LAN

................................ ................................ ................................ .. 53

EE. D EFINITIONS

................................ ................................ ................................ .......................... 53

APPENDIX A INSIGNIFICANT EMISSI ON UNITS

................................ ................................ ....... A

- 1

APPENDIX B DEFINITIONS AND ABBR EVIATIONS

................................ ................................ .. B

- 1

APPENDIX C NOTIFICATION ADDRESS ES

................................ ................................ .................. C

- 1

APPENDIX D AIR QUALITY INSPECTO R INFORMATION

................................ ....................... D

- 1

APPENDIX E OPACITY CEMS

................................ ................................ ................................ ......... E

- 1

APPENDIX F SO2 CEMS

................................ ................................ ................................ ..................... F

- 1

APPENDIX G NOX CEMS

................................ ................................ ................................ ................... G

- 1

APPENDIX H ACID RAIN

................................ ................................ ................................ ................... H

- 1

APPENDIX I COMP LIANCE ASSURANCE MON ITORING PLAN

................................ ............ I

- 1

APPENDIX J MERCURY EMISSIONS MO NITORING SYSTEM (MEM S)

............................... J

- 1OP0513

- 07 1 Draft : 05/17/2011

Terms not otherwise defined in this permit or in the Definit ions and Abbreviations Appendix of this permit have the meaning assigned to them in the referenced regulations.

SECTION I. GENERAL INFORMATION

The following general information is provided pursuant to ARM 17.8.1210(1).

Company Name : PPL Montana, LLC

M ailing Address : P.O. Box 38

City : Colstrip State : MT Zip : 59323

Plant Name : Colstrip Steam Electric Station

Plant Location : Section 2, Township 2 North, Range 41 East, Rosebud County

, Montana

Willow Avenue and Warehouse Road, Colstrip, Mon tana

Responsible Official : James M. Parker Phone : (406) 237

- 6900 Alternative Responsible Official : Stephen J. Christian Phone : (406) 748

- 5019

Facility Contact Person : Neil Dennehy Phone : (406) 748

- 5066

Primary SIC Code : 4911, Electric Services (NAICS Code: 221112)

Nature of Business : Coal

- fired thermal power generation

Description of Process : Four tangential coal

- fired boilers and associated equipment for generation of electricity.OP0513

- 07 2 Draft : 05/17/2011 SECTION II. SUMMARY OF EMISSION UNITS

The emiss ion units regulated by this permit are the following (ARM 17.8.1211):

Emission

Unit s ID Description Pollution Control Device/Practice

EU001 Unit #1

– Tangential Coal Fired Boiler Wet Venturi Scrubber

EU002 Unit #2

– Tangential Coal Fired Boiler Wet Vent uri Scrubber

EU003 Unit #3

– Tangential Coal Fired Boiler Wet Venturi Scrubber

EU004 Unit #4

– Tangential Coal Fired Boiler Wet Venturi Scrubber

EU005 Auxiliary Propane Boiler (1 & 2) None

EU006 Building Heating Boiler (3 & 4) None

EU007 Coal Handling System (1 & 2) Enclosed conveyors Dust Suppressant Telescopic Chute

EU008 Coal Handling System

– (silos, distribution bin, surge pile

tunnel, crushing and sampling house, and vacuum cleaning system) (3 & 4) Fabric filters

EU009 Coal Piles (Wind Erosion) Sealant on some storage piles, Dust suppression system, Enclosures

EU010 Emergency Diesel Generators None

EU011 Internal Combustion Engines (Vehicles) None

EU012 Lime Handling System Pneumatic Unloading

EU013 Plant Roads Dust suppressant is appl ied annually and water is applied as needed

EU014 Process Ponds Material is wet

EU015 Underground Gasoline Tank None

EU016 Alternate Fuel Loading (Syn Coal & Pet Coke) Bin Vent, covered transfer operations

EU017 Tangential Coal Fired Units 1

- 4 Mercu ry Emissions Mercury oxidizer/sorbent

EU018 Mercury Oxidizer/Sorbent Handling Systems (Units 1

- 4) Bin Vent FilterOP0513

- 07 3 Draft : 05/17/2011 SECTION III. PERMIT CONDITIONS

The following requirements and conditions are applicable to the facility or to specific emission unit s loc ated at the facility (ARM 17.8.1211, 1212, and 1213).

A. Facility

- Wide

Conditions Rule Citation Rule Description Pollutant/Parameter Limit

A.1 ARM 17.8.105 Testing Requirements Testing Requirements

------- A.2 ARM 17.8.304(1) Visible Air Contaminants Opac ity 40%

A.3 ARM 17.8.304(2) Visible Air Contaminants Opacity 20%

A.4 ARM 17.8.308(1) Particulate Matter,

Airborne Fugitive Opacity 20%

A.5 ARM 17.8.308(2) Particulate Matter,

Airborne Reasonable Precautions

-------

A.6 ARM 17.8.308 Particulate Matter,

Airborne Reasonable Precaution,

Construction 20%

A.7 ARM 17.8.309 Particulate Matter, Fuel Burning Equipment Particulate Matter E= 0.882 * H

- 0.1664 Or

E= 1.026 * H

- 0.233

A.8 ARM 17.8.310 Particulate Matter,

Industrial Processes Particulate Matter E= 4.1 0 * P 0.67 or E= 55 * P 0.11

- 40

A.9 ARM 17.8.322(4) Sulfur Oxide Emissions,

Sulfur in Fuel Sulfur in Fuel (liquid or solid fuels) 1 lb/MMBtu fired

A.10 ARM 17.8.322(5) Sulfur Oxide Emissions,

Sulfur in Fuel Sulfur in Fuel (gaseous) 50 gr/100 CF

A.11 ARM 17.8.324(3) Hydrocarbon Emissions,

Petroleum Products Gasoline Storage Tanks

-------

A.12 ARM 17.8.324 Hydrocarbon Emissions,

Petroleum Products 65,000 Gallon Capacity

-------

A.13 ARM 17.8.324 Hydrocarbon Emissions,

Petroleum Products Oil

- effluent Water Separator

-------

A.14 ARM 17.8.342 NESHAPs General

Provisions SSM Plans Submittal

A.15 Board of Health and

Environmental

S cience s (BHES) Findings of Fact and

Conclusions of Law signed on November 21, 1975; this requirement is “State Only” Major Facilit y Siting Act (MFSA) Requirements Coal Utilized within Units #3

and #4 As specified

A. 1 6 CV

- 07

- 40

- BLG

RFC

- CSO Consent Decree Various As specified

A.1 7 ARM 17.8.1211(1)(c)

and 40 CFR Part 98 Greenhouse Gas Reporting Reporting

-------

A.1 8 ARM 17.8.1212 R eporting Requirements Prompt Deviation Reporting

------- A.1 9 ARM 17.8.1212 Reporting Requirements Compliance Monitoring

------- A. 20 ARM 17.8.1207 Reporting Requirements Annual Certification

-------

Conditions

A.1. Pursuant to ARM 17.8.105, any person or persons responsible for the emissions of any air contaminant into the outdoor atmosphere shall, upon written request of the Department, provide the facilities and necessary equipment (including instruments and sensing devices) and shall conduct test, emiss ion or ambient, for such periods of time as may be necessary using methods approved by the Department.OP0513

- 07 4 Draft : 05/17/2011

Compliance demonstration frequencies that list “as required by the Department” refer to ARM 17.8.105. In addition, for such sources, compliance with li mits and conditions listing “as required by the Department” as the frequency, is verified annually using emission factors and engineering calculations by the Department’s compliance inspectors during the annual emission inventory
review; in the case of Met hod 9 tests, compliance is monitored during the regular inspection by the compliance inspector.

A.2. Pursuant to ARM 17.8.304( 1 ), PPL shall not cause or authorize emissions to be discharged into the outdoor atmosphere from any source installed on or before Nov ember 23, 1968, that exhibit an opacity of 40% or greater averaged over 6 consecutive minutes, unless otherwise specified by rule or in this permit.

A.3. Pursuant to ARM 17.8.304(2), PPL shall not cause or authorize emissions to be discharged into

the outdoor atmosphere from any source installed after November 23, 1968, that exhibit an opacity of 20% or greater averaged over 6 consecutive minutes, unless otherwise specified by rule or in this permit.

A.4. Pursuant to ARM 17.8.308(1), PPL shall not cause or authoriz e the production, handling, transportation, or storage of any material unless reasonable precautions to control emissions of particulate matter (PM) are taken. Such emissions of airborne particulate matter from any stationary source shall not exhibit an o pacity of 20% or greater averaged over 6 consecutive minutes, unless otherwise specified by rule or in this permit.

A.5. Pursuant to ARM 17.8.308(2), PPL shall not cause or authorize the use of any street, road or parking lot without taking reasonable precauti ons to control emissions of airborne particulate matter, unless otherwise specified by rule or in this permit.

A.6. Pursuant to ARM 17.8.308, PPL shall not operate a construction site or demolition project unless reasonable precautions are taken to control emi ssions of airborne PM . Such emissions of airborne

PM from any stationary source shall not exhibit an opacity of 20% or greater averaged over 6 consecutive minutes, unless otherwise specified by rule or in this permit.

A.7. Pursuant to ARM 17.8.309, unless oth erwise specified by rule or in this permit, PPL shall not

cause or authorize PM caused by the combustion of fuel to be discharged from any stack or chimney into the outdoor atmosphere in excess of the maximum allowable emissions of PM for existing fuel bur ning equipment and new fuel burning equipment calculated using the following equations:

For existing fuel burning equipment (installed before November 23, 1968):

E =0.882 * H
- 0.1664

For new fuel burning equipment (installed on or after November 23, 1968 ):

E =1.026 * H
- 0.233

Where H is the heat input capacity in million British thermal units (MMBtu) per hour and E is the maximum allowable particulate emissions rate in pounds per MMBtu.

A.8. Pursuant to ARM 17.8.310, unless otherwise specified by rule or in t his permit, PPL shall not

cause or authorize PM to be discharged from any operation, process, or activity into the outdoor atmosphere in excess of the maximum hourly allowable emissions of PM calculated using the following equations:

For process weight ra tes up to 30 tons per hour: E = 4.10 * P 0.67OP0513

- 07 5 Draft : 05/17/2011

For process weight rates in excess of 30 tons per hour: E = 55.0 * P 0.11

– 40

Where E = rate of emissions in pounds per hour and p = process weight rate in tons per hour.

A.9. Pursuant to ARM 17.8.322(4), PPL shal l not burn liquid or solid fuels containing sulfur in excess of 1 pound per MM Btu fired, unless otherwise specified by rule or in this permit.

A.10. Pursuant to ARM 17.8.322(5), PPL shall not burn any gaseous fuel containing sulfur compounds in excess of 50 gra ins per 100 cubic feet of gaseous fuel, calculated as hydrogen sulfide at standard conditions, unless otherwise specified by rule or in this permit.

A.11. Pursuant to ARM 17.8.324(3), PPL shall not load or permit the loading of gasoline into any stationary tank with a capacity of 250 gallons or more from any tank truck or trailer, except through a permanent submerged fill pipe, unless such tank is equipped with a vapor loss control device or is a pressure tank as described in ARM 17.8.324(1), unless otherwise sp ecified by rule or in this permit.

A.12. Pursuant to ARM 17.8.324, unless otherwise specified by rule or in this permit, PPL shall not place, store or hold in any stationary tank, reservoir or other container of more than 65,000 gallon capacity any crude oil, g asoline or petroleum distillate having a vapor pressure of 2.5 pounds per square inch absolute or greater under actual storage conditions, unless such tank, reservoir or other container is a pressure tank maintaining working pressure sufficient at all time s to prevent hydrocarbon vapor or gas loss to the atmosphere, or is designed and equipped with a vapor loss control device, properly installed, in good working order and in operation.

A.13. Pursuant to ARM 17.8.324, unless otherwise specified by rule or in th is permit, PPL shall not use any compartment of any single or multiple

- compartment oil

- effluent water separator, which compartment receives effluent water containing 200 gallons a day or more of any petroleum product from any equipment processing, refining , treating, storing or handling kerosene or other petroleum product of equal or greater volatility than kerosene, unless such compartment is equipped with a vapor loss control device, constructed so as to prevent emission of hydrocarbon vapors to the atmos phere, properly installed, in good working order and in operation.

A.14. Pursuant to ARM 17.8.342 and 40 CFR 63.6, PPL shall submit to the Department a copy of any startup, shutdown, and malfunction (SSM) plan required under 40 CFR 63.6(e)(3) within 30 days

of the effective date of this operating permit (if not previously submitted), within 30 days of the compliance date of any new National Emission Standard for Hazardous Air Pollutants (NESHAPs) or Maximum Achievable Control Technology (MACT) standard, and wit hin 30 days of the revision of any such SSM plan, when applicable. The Department requests submittal of such plans in electronic form, when possible.

A.15. In accordance with the conditi onal certification of Colstrip U nits # 3 and # 4 made pursuant to

Sec t ion 7 0

- 810 (L), Revised Code of Montana (R.C.M) 1947 of the Major Facility Siting Act (MFSA), PPL shall utilize only coal from the Rosebud seam within Units #3 and #4 ( Boar d of

Health and Environmental Sciences (BHES) Findings of Fact and Conclusions of Law sig ned on November 21, 1975; this requirement is “State Only”)

.

A.16. PPL shall comply with the following applicable terms of US EPA Consent Decree CV

- 07

- 40

- BLG

- RFC

- CSO (entered 5/14/07), and its Amendments, for the life of the Consent Decree (ARM 17.8.1211):

a. Sec tion I V: Oxides of Nitrogen ( NO

x ) Emission Reductions and Controls;OP0513

- 07 6 Draft : 05/17/2011

b. Section V: Prohibition on Netting Credits or Offsets from Required Controls;

c. Section V I: Relationship to PSD Permit ;

d. Section X: Periodic Reporting ;

e. Section XII : Force Majeure (e xcluding the stipulated penalty components );

f. Section XIV: Permits; and

g. Section XV: Information Collection and Retention.

A.17. Pursuant to ARM 17.8.1211(1)(c) and 40 CFR Part 98, PPL shall comply with requirements of 40

CFR Part 98

– Mandatory Greenhouse Gas Reporting, as applicable (ARM 17.8.1211(1)(c), NOT an applicable requirement under Title V).

A.18. PPL shall promptly report deviations from permit requirements including those attributable to upset conditions, as upset is defined in the permit. To be consider ed prompt, deviations shall be reported to the Department using the schedule and content as described in Section V.E (unless otherwise specified in an applicable requirement) (ARM 17.8.1212)

.

A.19. On or before February 15 and August 15 of each year, PPL shall submit to the Department the compliance monitoring reports required by Section V.D. These reports must contain all information required by Section V.D, as well as the information required by each individual emissions unit. For the reports due by February 15 of each year, PPL may submit a single report, provided that it contains all the information required by Section V.B & V.D. Per ARM 17.8.1207,

any application form, report, or compliance certification submitted pursuant to ARM Title 17, Chapter 8, Su bchapter 12 (including semiannual monitoring reports), shall contain certification by a responsible official of truth, accuracy and completeness. This certification and any other certification required under ARM Title 17, Chapter 8, Subchapter 12, shall s tate that, “based on information and belief formed after reasonable inquiry, the statements and information in the document are true, accurate and complete.”

A.20. By February 15 of each year, PPL shall submit to the Department the compliance certification

repo rt required by Section V.B. The annual certification report required by Section V.B must include a statement of compliance based on the information available that identifies any observed, documented or otherwise known instance of noncompliance for each ap plicable requirement. Per
ARM 17.8.1207,

any application form, report, or compliance certification submitted pursuant to ARM Title 17, Chapter 8, Subchapter 12 (including annual certifications), shall contain certification by a responsible official of

tr uth, accuracy and completeness. This certification and any other certification required under ARM Title 17, Chapter 8, Subchapter 12,
shall state that, “based on information and belief formed after reasonable inquiry, the statements and information in the document are true, accurate and complete.”OP0513

- 07 7 Draft : 05/17/2011

B. EU001 and EU002

– Tangential Coal Fired Units 1 & 2

Condition(s) Pollutant/Parameter Permit Limit Compliance Demonstration Method Frequency Reporting Requirements

B.1, B.4, B.13,
B.14, B.24

, B.25, B.28,
B.29, B.30,

B.32 & B.33 Opacity 20%/27% COMS Ongoing Quarterly

Method 9 As required by

the Department

and Section

III.A.1 Semiannually

B.2, B.15,
B.24, B.28,
B.29, B.32 &

B.33 PM 0.1 lb/MMBtu Method 5 or 5B Annual

B.3, B.4, B.5,

B. 17, B.18,
B.19, B.24,
B.26, B.28,
B.29, B.32,

B.33 SO 2 1.2 lb/MMBtu Method 6 or 6C Annual Semiannually

CEMS Ongoing Quarterly

B.3,B.4, B.5,
B.7, B.16,
B.18, B.19,
B.24, B.26,
B.28, B.29,

B.32 & B.33 NO

x 0.7 lb/MMBtu Method 7 or 7E Annual Semiannual ly

CEMS Ongoing Quarterly

0.40 lb/MMBtu (annual average) 40 CFR 72

- 78

and Appendix H As required by

Appendix H

B.5, B.6, B.7,
B.18, B.19,
B.26, B.28,

B.31

- B.33 Acid Rain Provisions 40 CFR 72

- 78 and Appendix H 40 CFR 72

- 78

and Appendix H As req uired by

Appendix H

B.8, B.20,
B.27, B.28,
B.32, B.33 PM CAM Plan ARM 17.8.1506 Provisions from CAM Plan, Appendix I Ongoing

B.9, B.21,
B.28, B.32,

B.33 Syncoal limit 700,800 tons/12

- month rolling Log Ongoing Semiannually

B.10, B.22,
B.28, B.32 &

B.3 3 Petroleum coke limit 280,320 tons/12

- month rolling Log Ongoing

B.11, B.22,
B.28, B.32 &

B.33 Petroleum coke limit 28% of maximum heat input value Log Ongoing

B.12, B.23,
B.28, B.32,

B.33 Scrubbers Maintain & Operate Log Daily

Conditions

B.1. PPL shall not cause or authorize to be discharged into the atmosphere from Units 1 & 2 any

visible emissions that exhibit an opacity of 20% or greater averaged over 6 consecutive minutes except for one 6

- minute period per hour of not greater than 27% opacity (ARM 1 7.8.340 and 40 CFR 60, Subpart D ).

B.2. PPL shall not cause to be discharged into the atmosphere PM in excess of 0.10 lb/MMBtu, as averaged over 3 hours (minimum) of reference method testing (40 CFR §52.21 , ARM 17.8.340

, and 40 CFR 60, Subpart D ).

B.3. Any gaseou s emissions discharged into the atmosphere shall not exceed 1.2 lb/MMBtu Sulfur Dioxide ( SO 2 ) and 0.7 lb/MMBtu NO

x (ARM 17.8.340 and 40 CFR 60, Subpart D).OP0513

- 07 8 Draft : 05/17/2011

B.4. PPL shall install, operate, calibrate and maintain continuous emission monitoring systems (CEMS) f or the following:

a. A CEMS for the measurement of SO 2 shall be operated on each stack (ARM 17.8.340 and 40 CFR 60.45);

b. A CEMS for the measurement of NO

x shall be operated on each stack (ARM 17.8.340 and 40 CFR 60.45);

c. A CEMS for the measurement of Carbon Dioxide ( CO 2 ) shall be operated on each stack (ARM 17.8.340 and 40 CFR 60.45);

d. A CEMS for the measurement of opacity shall be operated on each stack (ARM 17.8.340 and 40 CFR 60.45); and

e. Continuous monitoring for stack gas temperature, stack gas moisture (where necessary), megawatt production, and Btu per hour shall be performed on each unit (40 CFR 52.21).

B.5. PPL shall comply with all requirements in the Acid Rain Appendix H of this permit including the operation and maintenance of the SO 2 and NO

x CEMS (AR M 17.8.1210(3)).

B.6. Emissions shall not be permitted in excess of any allowances that PPL lawfully holds under T itle IV of the FCAA or the regulations promulgated thereunder (ARM 17.8.1210(3)(a)).

a. A permit revision is not required for increases in emissions authorized by allowances acquired pursuant to the acid rain program, provided that such increases do not require a permit revision under any other applicable requirement (ARM 17.8.1210(3)(b)).

b. PPL may not use allowances as a defense to noncompliance with any other applicable requirement (ARM 17.8.1210(3)(c)).

c. Any allowances shall be accounted for according to the procedures established in regulations promulgated under Title IV of the FCAA (ARM 17.8.1210(3)(d)).

B.7. Pursuant to 40 CFR §76.7

, PPL shall not di scharge or allow to be discharged, emissions of NO

x to the atmosphere in excess of 0.40 lb/MMBtu on an annual average basis (40 CFR §76.7(a) ).

B.8. PPL shall provide a reasonable assurance of compliance with emission limitations or standards for the anticipate d range of operations of the Tangential Coal

- Fired Boilers , Units 1 & 2 for PM (ARM 17.8.1504).

B.9. PPL shall limit Units 1 & 2 to a maximum of 700,800 tons of Syncoal during any rolling 12

- month period (ARM 17.8.752).

B.10. PPL shall limit Units 1 & 2 to a maxim um of 280,320 tons of petroleum coke during any rolling

12

- month period (ARM 17.8.749).

B.11. PPL shall be limited to a maximum fuel use of 28% petroleum coke for each of the Units 1 & 2, based on the maximum heat input value of the units (ARM 17.8.749).

B.12. PPL shall maintain and operate the scrubbers to control emissions on Units 1 & 2 (ARM 17.8.749).OP0513

- 07 9 Draft : 05/17/2011

Compliance Demonstration

B.13. PPL shall perform a Method 9 test on the boilers as required by the Department and Section III.A.1 while the boilers are in operation t o monitor compliance with the opacity limitation in Section III.B.1. The testing shall be performed in accordance with the Montana Source Test Protocol and Procedures Manual or another method approved by the Department (ARM 17.8.749 and ARM 17.8.106).

B.14. PP L shall operate and maintain the continuous opacity monitor (COM) to monitor compliance with the opacity limitation in Section III.B.1. The operation and maintenance shall be performed in accordance with the Opacity CEMS Appendix E of this permit (ARM 17. 8.749).

B.15. PPL shall perform a Method 5 or 5B PM test annually during periods the equipment is in operation to monitor compliance with the PM limit in Section III.B.2. The testing shall be performed in accordance with the Montana Source Test Protocol and Pr ocedures Manual (ARM 17.8.749 and ARM 17.8.106).

B.16. PPL shall perform a Method 7 or 7E annually during periods of boiler operation to monitor compliance with the NO

x limit in Section III.B.3. The testing shall be performed in accordance

with the Montana Sou rce Test Protocol and Procedures Manual (ARM 17.8.749 and ARM 17.8.106).

B.17. PPL shall perform a Method 6 or 6C annually during periods of boiler operation to monitor compliance with the SO 2 limit in Section III.B.3. The testing shall be performed in accorda nce with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.749 and ARM 17.8.106).

B.18. PPL shall monitor compliance with emission limits in Section III.B.3 pursuant to the requirements in 40 CFR Part 75, 40 CFR Part 76, SO 2 CEMS Appendix F, and the NO

x CEMS Appendix G of this permit (ARM 17.8.1213).

B.19. PPL shall monitor compliance with the Acid Rain Provisions according to 40 CFR 72

- 78 and Appendix H of this permit, including monitoring as described in the SO 2 CEMS Appendix F and

NO

x CEMS Appendix G of this permit (ARM 40 CFR 72

- 78).

B.20. PPL shall monitor compliance by following the Compliance Assurance Monitoring (CAM) Plan (Appendix I). The CAM Plan, written by Colstrip in accordance with ARM 17.8.1504 is summarized in Appendix I and is available in full upon request by the Department or the facility (ARM 17.8.1503 and ARM 17.8.1213).

B.21. PPL shall document, by month, the amount of Syncoal used. By the 25th day of each month, Colstrip shall total the amount of Syncoal used in Units 1 & 2 during the pre vious month. The monthly information will be used to verify compliance with the rolling 12

- month limitation in

Section I I I. B

. 9 . The information for each of the previous months shall be submitted along with the annual emission inventory (ARM 17.8.749).

B.22. P PL shall document, by month, the amount of petroleum coke used. By the 25th day of each month, Colstrip shall total the amount of petroleum coke used in Units 1 & 2 during the previous month. The monthly information will be used to verify compliance with the rolling 12

- month

limitation in Section III.B.10

. In addition, this monthly information will be used to verify compliance with the limitation on percentage of petroleum coke (based on the maximum heat input value of each unit) combusted in Units 1 & 2 , to verify compliance with Section III.B.1 1

. The information for each of the previous months shall be submitted along with the annual emission inventory (ARM 17.8.749).OP0513

- 07 10 Draft : 05/17/2011

B.23. PPL shall maintain records of scrubber maintenance and operation to monitor complianc e with

Section III.B.12 (ARM 17.8.749).

Recordkeeping

B.24. All source testing recordkeeping shall be performed in accordance with the Montana Source Test Protocol and Procedures Manual, and shall be maintained on site. Method 9 source test reports for opaci ty need not be submitted unless requested by the Department (ARM 17.8.106).

B.25. Records shall be prepared and data kept in accordance with the Opacity CEMS Appendix E of this permit (ARM 17.8.1212).

B.26. Records shall be prepared and data kept in accordance with 40 CFR Part 75 and Appendix H of this permit, the SO 2 CEMS Appendix F, and the NO

x CEMS Appendix G of this permit (ARM

17.8.1212 and 40 CFR 72

- 78).

B.27. Records shall be prepared and date kept in accordance with 40 CFR Part 64 and the CAM Appendix I of this pe rmit (ARM 17.8.1212 and 40 CFR 64).

B.28. PPL shall maintain, under their control, all records required for compliance monitoring as a permanent business record for at least 5 years. Furthermore, the records must be available at the plant site for inspection b y the Department and EPA, and must be submitted to the Department upon request (ARM 17.8.1212).

Reporting

B.29. The Method 5, Method 5B, Method 6, Method 6C , Method 7, Method 7E, and Method 9 test reports as specified in Section III.B. 13 , 1 5 , 1 6 , and 1 7 shall be submitted in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106).

B.30. Reporting for the opacity CEMS shall be performed according to Appendix E of this permit (ARM 17.8.1212).

B.31. Reporting for the Acid Rain Provisions shall be performed according to 40 CFR 72

- 78 and Appendix H of this permit (40 CFR 72

- 78).

B.32. The annual compliance certification report required by Section V.B must contain a certification statement for the above applicable requirements (ARM 17.8.1212)

.

B.33. The se miannual monitoring report shall provide (ARM 17.8.1212):

a. A summary of results of any Method 9, Method 5, or 5B, Method 6 or 6C , and Method 7 or 7E tests conducted during the period; the actual test reports for Method 9 need only be submitted to the Depar tment, upon request, as specified by Section III.B. 2 4 ;

b. Certification of submittal of opacity CEMS reports;

c. Certification of compliance with 40 CFR 75, Opacity CEMS Appendix E

, SO 2 Appendix F

, and NO

x Appendix G ;

d. Certification of compliance with 40 CFR 64 (CAM), Appendix I ; andOP0513

- 07 11 Draft : 05/17/2011

e. Certification that PPL has maintained r eports of any required monitoring performed during the reporting period, with all instances of deviations from any permit requirements identified.OP0513

- 07 12 Draft : 05/17/2011

C. EU003 and EU004

– Tangential Coal Fired Un its 3 & 4

Condition(s) Pollutant/Parameter Permit Limit Compliance Demonstration Method Frequency Reporting Requirements

C.1, C.21, C.24, C.25, C.36,
C.41, C.42, C.45, C.47

– C.50 Opacity 20% /27% COMS Ongoing Quarterly

Method 9 As required by the

Department and

Section III.A.1 Semiannually

C.2, C.3, C.4,
C.26, C.42, C.47

– C.49 PM 0.05 lb/MMBtu Method 5 or

Method 5B Annual

379 lb/hr

0.10 lb/MMBtu

C.4

– C.8, C.21,
C.27, C.28,
C.36, C.42, C.43, C.45, C.47

– C.50 SO 2 1.2 l b/MMBtu Method 6 or 6C Annual

0.18 lb/MMBtu (calendar day average) CEMS Ongoing Quarterly

761 lb/hr (30 day rolling average)

1363 lb/hr (calendar day average)
4140 lb/hr (3

- hr rolling average)
C.9, C.29, C.38,
C.42, C.47

– C.50 % sulfur 1% sulfur content

of coal Composite coal

samples in

accordance with

Method 19 Ongoing Semiannually

C.4, C.10, C.11,
C.12, C.21,
C.30, C.31,
C.32, C.36,
C.39, C.42, C.43, C.45,

C.47

- C.50 NO

x 0.7 lb/MMBtu Method 7 or 7E Annual

CEMS Ongoi ng Quarterly

5301 lb/hr

0.40 lb/MMBtu (annual average) 40 CFR 72

- 78

and Appendix H As required by

Appendix H E=0.2x+0.3y=0.7z

x + y + z Emissions limit

calculations When burning fuel

other than coal Semiannually

C.13, C.31,
C.36, C.43,

C.45 , C.47

- C.50 NO 2 0.7 lb/MMBtu (calendar day average) CEMS Ongoing Quarterly

C.14, C.17,
C.31, C.36, C.43, C.45,

C.47

- C.50 NO

x (30

- day rolling average) 0.18 lb/MMBtu if

unit operating >

400 MW CEMS Ongoing

0.30 lb/MMBtu if unit operating

=<400 MW
1,363 lb/hr

NO

x (24

- hour average) 0.25 lb/MMBtu if unit operating >

400 MW

0.30 lb/MMBtu if unit operating

=<400 MW
1,893 lb/hr

C.15, C.16,
C.33, C.40, C.47

– C.49 NO

x Control Operate digital
controls, low

- NO

x burners, overfire

air Documentation Ongoing Semiannually

C.18, C.33,
C.40, C.47

– C.49 NO

x Control Classification, BART, visibility,

and Baseline Visibility As required by

EPA As required by

EPA As required by

EPA

C.19, C.20,
C.34, C.43,
C.44, C.47

– C.49 Acid Rain Provisio ns 40 CFR 72

- 78 and Appendix H 40 CFR 72

- 78

and Appendix H As required by

Appendix H QuarterlyOP0513

- 07 13 Draft : 05/17/2011

C.21, C.36,
C.41, C.43,
C.45, C.47

– C.50 SO 2 CEMS Install, Operate

and Maintain Ongoing Quarterly

NO

x CO 2 Opacity
C.22, C.35, C.47

– C.50 Heat Input 6.63 x 10 7
MMBtu/yr Coal analysis

and tonnage Monthly

log Monthly
C.21, C.36,
C.43, C.45, C.47

– C.50 Stack Parameters Measure stack

parameters Monitor stack

gas temperature, moisture, Mwatt production and

Btu/hr Ongoing

C.23, C.37, C. 46

– C.49 PM CAM Plan ARM 17.8.1506 Provisions from CAM Plan, Appendix I Ongoing

Conditions

C.1. PPL shall not cause or authorize to be discharged into the atmosphere from Units 3 & 4 any

visible emissions that exhibit an opacity of 20% or greater averaged over 6 consecutive minutes except for one 6

- minute period per hour of not greater than 27% opacity (ARM 17.8.340 and 40 CFR 60, Subpart D ).

C.2. PPL shall not cause to be discharged into the atmosphere PM in excess of 0.05 lb/MMBtu, as averaged over 3 hours ( minimum) of reference method testing (40 CFR § 52.21).

C.3. PPL shall not cause to be discharged into the atmosphere PM in excess of 379 lb/hr (ARM 17.8.749).

C.4. Any gaseous emissions discharged into the atmosphere from burning coal shall not exceed 0.10

lb/MM Btu PM, 1.2 lb/MMBtu SO 2 and 0.7 lb/MMBtu NO

x ( ARM 17.8.340 and 40 CFR 60, Subpart D).

C.5. PPL shall not cause to be discharged into the atmosphere SO 2 at a rate of 0.18 lb/MMBtu heat input, averaged over any calendar day, not to be exceeded more than once du ring any calendar month (40 CFR § 52.21).

C.6. PPL shall not cause to be discharged into the atmosphere SO 2 at a rate of 761 lb/hr, averaged over any rolling 30

- day period, calculated each day at midnight, using hourly data calculated each hour on the hour (40 CFR § 52.21).

C.7. PPL shall not cause to be discharged into the atmosphere SO 2 at a rate of 1363 lb/hr, averaged over any calendar day, not to be exceeded more than once during any calendar month (40 CFR § 52.21).

C.8. PPL shall be limited to a maximum of 4140 l b/hr of SO 2 averaged over a 3

- hr rolling period from

both Units 3 & d 4 stacks combined (ARM 17.8.749).

C.9. PPL shall be limited to a sulfur content in coal of 1% (ARM 17.8.749 and BHES Findings of Fact and Conclusions of Law signed on November 21, 1975; this requirement is “State Only” ).

PPL has developed a contingency plan for blending coal to achieve the 1.0% (sulfur as received basis) limit. Implementation of the plan will not be required unless the coal exceeds the “worst case coal” design criteria, whic h is a heat content of less than 8162 Btu/lb, and ash content of greater than 12.5% and a sulfur content greater than 1% all on an as

- received basis.OP0513

- 07 14 Draft : 05/17/2011

C.10. Pursuant to 40 CFR §76.7

, PPL shall not discharge or allow discharged emissions of NO

x to the atmosphere in excess of 0.40 lb/MMBtu on an annual average basis (40 CFR §76.7(a)).

C.11. PPL shall be limited to 5301 lb/hr of NO

x from each of the tangential coal fired boilers, Units 3 &

4 (ARM 17.8.749).

C.12. Any gaseous NO

x emissions discharged into the atmosphere when b urning fuel other than coal shall not exceed (ARM 17.8.749):

E = 0.2x + 0.3y + 0.7z

x + y + z

where: E = allowable emissions in lb/MMBtu heat input x = fraction of total heat input derived from gaseous fuels y = fraction of total heat input derived fr om liquid fuels z = fraction of total heat input derived fro solid fuels.

C.13. PPL shall not cause to be discharged into the atmosphere NO

x expressed as NO 2 at a rate of 0.7 lb/MMBtu, averaged over any calendar day (40 CFR §52.21).

C.14. Beginning January 1, 2008

, for Unit 3 and January 19 , 2010

, for Unit 4, PPL shall not exceed any of the following NO

x emission limits from Units 3 or 4 ( ARM 17.8.749, Consent Decree CV

- 07

- 40

- BLG

- RFC

- CSO entered 5/14/07 and Stipulation to Consent Decree CV

- 07

- 40

- BLG

- RFC

CSO entered 12/22/09 ):

a. 30

- day rolling average emission rate of:

i. 0.18 lb/MMBtu weighted average for each hour that either unit is operating above 400 gross megawatts (MW); and

ii. 0.30 lb/MMBtu weighted average for each hour that either unit is operating at or below

40 0 gross MW

b. 1,363 lb/hr 30

- day rolling average emission rate for each unit

c. 24

- hour average emission rate (for each Operating Day) of:

i. 0.25 lb/MMBtu weighted average for each hour that either unit is operating above 400 gross MW; and

ii. 0.30 lb/MMBtu weigh ted average for each hour that either unit is operating at or below 400 gross MW

d. 1,893 lb/hr 24

- hour average emission rate (for each Operating Day) for each unit

.

For the purposes of this section , if a unit is operating above 400 MW for part of one hour and at or below 400 MW for the remainder of that hour, the applicable emissions limits shall be based on the average load for the hour. In addition, the emission rates for this condition are considered

for an “Operating Day” as defined in the Consent Dec ree entered 5/14/07 (CV

- 07

- 40

- BLG

- RFC

CSO), except for the purposes of the Montana A ir Q uality P ermits (MAQP)

, “ O perating D ay ” means any calendar day (midnight to midnight) in which any fuel is combusted in the unit.OP0513

- 07 15 Draft : 05/17/2011

C.15. PPL shall operate digital controls, lo w

- NO

x burners and overfire air on Unit 3 sufficient to meet

the emissions limits in Section II I.C.14 (ARM 17.8.749 and Consent Decree CV

- 07

- 40

- BLG

RFC

- CSO entered 5/14/07).

C.16. By January 1, 2009, PPL shall complete the final design and by January 19, 2010

, P PL shall install and operate digital controls, low

- NO

x burners and overfire air on Unit 4 sufficient to meet

the Unit 4 emissions limits in Section III.C.14 ( ARM 17.8.749, Consent Decree CV

- 07

- 40

- BLG

RFC

- CSO entered 5/14/07 and Stipulation to Consent Decre e CV

- 07

- 40

- BLG

- RFC

- CSO entered

12/22/09 )

.

C.17. The Unit 3 & 4 NO

x emission limits specified in Section III.C.14 shall apply at all times, including periods of start

- up, shutdown, load fluctuation, maintenance and malfunction, regardless of cause (ARM 17.8.749 and Consent Decree CV

- 07

- 40

- BLG

- RFC

- CSO entered 5/14/07).

C.18. Should the Northern Cheyenne Reservation be redesignated to any PSD classification less stringent than Class I, the following conditions in Section III.C.1 8 shall be of no force and effect.

Howeve r, any control designed and implemented pursuant to Section III.C.1 8 shall remain operable.

At such time as EPA promulgates requirements for Best Available Retrofit Technology (BART)

for NO

x control under the Clean Air Act, PPL shall review Colstrip Units 3 & 4 for implementation of BART for NO

x control. PPL shall submit this analysis and recommendation for appropriate control to EPA for review and approval. This BART determination by EPA shall be subject to a formal hearing on the record after due notic e to PPL and the Northern Cheyenne

Tribe. The determination of what constitutes B ART shall be specific to Units 3 & 4 and shall take into consideration the costs of compliance, the energy and non

- air quality environmental impacts of compliance, any existi ng pollution control technology in use at the source, the remaining useful life of the source, and the degree of improvement in visibility which may reasonably be anticipated to result from the use of such technology. Failure to implement those

control me asures found to constitute BART shall be a violation of this permit . Compliance with the requirements of the consent decree entered 5/14/07 is deemed to satisfy this above requirement ( Consent Decree CV

- 07

- 40

- BLG

- RFC

- CSO entered 5/14/07, EPA PSD Permit

, a nd 40 CFR §52.21).

If there is a perceptible particulate plume on the Northern Cheyenne Tribe Reservation, as observed by an impartial observer designated by EP A, PPL shall review Units 3 & 4 for implementation of BART for PM control. PPL shall submit t his analysis and a recommendation for appropriate control to EPA for review and approval. This BART determination by EPA shall be subject to a formal hearing on the record after due notice to PPL and the Northern Cheyenne

Tribe. The determination of what constitutes B ART shall be specific to Units 3 & 4 and shall take into consideration the costs of compliance, the energy and non

- air quality environmental impacts of compliance, any existing pollution control technology in use at the source, the remaining useful life of the source, and the degree of improvement in visibility which may reasonably be anticipated to result from the use of such technology. Failure to implement those control measures found to constitute BART shall be a violation of this permit (EPA PSD Permit and 40 CFR §52.21).

C.19. PPL shall comply with all requirements in the Acid Rain Appendix H of this permit (ARM 17.8.1210).

C.20. Emissions shall not be permitted in excess of any allowances that PPL lawfully holds under Title

IV of the FCAA or the regulations promulgated thereunder (ARM 17.8.1210(3)(a)).OP0513

- 07 16 Draft : 05/17/2011

a. A permit revision is not required for increases in emissions authorized by allowances acquired pursuant to the acid rain program, provided that such increases do not require a permit revision under any other applicable requirement (ARM 17.8.1210(3)(b)).

b. PPL may not use allowances as a defense to noncompliance with any other applicable requirement (ARM 17.8.1210(3)(c)).

c. Any allowances shall be accounted for according to the procedures established in regulations promulgated under Title IV of the FCAA (ARM 17.8.1210(3)(d)).

C.21. PPL shall install, operate, calibrate and maintain CEMS for the following:

a. A CEMS for the measurement of SO 2 shall be operated on each stack (ARM 17.8.340 and 40 CFR 60.45);

b. A C EMS for the measurement of NO

x shall be operated on each stack (ARM 17.8.340 and 40 CFR 60.45);

c. A CEMS for the measurement of CO 2 or oxygen shall be operated on each stack (ARM 17.8.340 and 40 CFR 60.45);

d. A CEMS for the measurement of opacity shall be op erated on each stack (ARM 17.8.340 and 40 CFR 60.45); and

e. Continuous monitoring for stack gas temperature, stack gas moisture (where necessary), megawatt production, and Btu per hour shall be performed on each unit (40 CFR 52.21).

f. PPL shall maintain the data acquisition system such that load data in megawatts is recorded no less than once per minute (ARM 17.8.749 and Consent Decree CV

- 07

- 40

- BLG

- RFC

- CSO entered 5/14/07).

C.22. PPL shall not exceed the heat input value of 6.63 x 10 7 MMBtu/yr averaged over any r olling 12

- month period (ARM 17.8.749).

C.23. PPL shall provide a reasonable assurance of compliance with emission limitations or standards for the anticipated range of operations at the Tangential Coal

- fired Boilers , Units 3 & 4 for PM (ARM 17.8.1504).

Complia nce Demonstration

C.24. PPL shall perform a Method 9 test or another method approved by the Department to monitor compliance with the opacity limitation in Section III.C.1. The testing shall be performed in

accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.749 and ARM 17.8.106).

C.25. PPL shall operate and maintain the opacity CEM to monitor compliance with the opacity limitation in Section III.C.1. according to the Opacity CEMS Appendix E (Arm 17.8.1213).

C.26. PPL shall perform a Method 5 or Method 5B PM test, or another method approved by the Department, on the boilers annually to monitor compliance with the PM fuel burning limitation in Section III.C.2 and III.C.3. The testing shall be performed in accordance with the Montana Source

Te st Protocol and Procedures Manual and the heat input must be calculated in accordance with 40 CFR Part 75 Appendix F, §5. Procedures for Heat Input (ARM 17.8.106 and 40 CFR Part 75 Appendix F).OP0513

- 07 17 Draft : 05/17/2011

C.27. PPL shall perform a Method 6 or 6C annually, to monitor compl iance with the SO 2 limit in Section III.C.4. Heat input must be calculated in accordance with 40 CFR Part 75 Appendix F, §5. Procedures for Heat Input (ARM 17.8.1213 and 40 CFR Part 75 Appendix F).

C.28. PPL shall operate and maintain the SO 2 CEMS in accordanc e with the SO 2 CEMS Appendix F of this permit (ARM 17.8.1213).

C.29. Compliance with the sulfur in coal limit in Section III.C.9 shall be based on available daily composite coal samples as measured by 40 CFR 60, Appendix A Method 19 or another sampling

schedule as approved by the Department (ARM 17.8.1213 and BHES Findings of Fact and Conclusions of Law signed on November 21, 1975; this requirement is “State Only” ).

C.30. PPL shall perform a Method 7 or 7E annually, to monitor compliance with the NO

x limit in

Section III.C.4. Heat input must be calculated in accordance with 40 CFR Part 75 Appendix F, §5. Procedures for Heat Input (ARM 17.8.1213 and 40 CFR Part 75 Appendix F).

C.31. PPL shall operate and maintain the NO

x CEMS in accordance with the NO

x CEMS Appendix G of

t his permit (ARM 17.8.1213).

C.32. PPL shall maintain a log of any exceedence of NO

x when burning fuel other than coal as required by Section III.C.12. The Department will compare the calculated emission limit with the results

from the NO

x CEMS (ARM 17.8.1213).

C.33. PPL shall monitor compliance with Section III.C.1 8 as required by EPA in the consent decree entered May 14, 2007

. As part of these requirements, PPL will maintain records demonstrating compliance with the NO

x emission control requirements contained in S ection III.C.15 & C.16 (ARM 17.8.1213 , ARM 17.8.749, and Consent Decree CV

- 07

- 40

- BLG

- RFC

- CSO entered

5/14/07 ).

C.34. PPL shall monitor compliance with Section III.C. 19 and 2 0 as required by Appendix H

– Acid Rain Appendix (ARM 17.8.1213 and Appendix H).

C.35. Compli ance with the heat input limit of Section III.C.22 shall be monitored based on the total tons of coal combusted in each of the boilers multiplied by a representative average Btu content for the

coal. PPL shall document, by month, the total fuel combusted in each boiler. By the 25 th day of each month, PPL shall calculate the tons of coal combusted for the previous month. The monthly information will be used to verify compliance with the rolling 12

- month limitation in Section

III.C.22. The information for each of the previous months shall be submitted along with the annual emission inventory. The coal analysis shall be done as required by the NO

x CEMS Appendix G, Section 5, 6, and 7 (ARM 17.8.1213).

C.36. All continuous monitors shall be operated, excess emiss ions reported, and performance tests conducted, in accordance with the requirements of 40 CFR Part 60, Subpart D, 40 CFR 60.7, 60.8, 60.11, 60.13, and 40 CFR 60 Appendix B Performance Specifications #1, #2, and #3 subject to the following:

a. The requirement s of 40 CFR 60. 4 8 D a

– Compliance Provisions ( 40 CFR 60, Subpart Da) shall apply to Units 3 & 4 (40 CFR § 52.21);

b. The requirements of 40 CFR 60.4 9 D a

– Emissions Monitoring ( 40 CFR 60, Subpart Da) shall apply to Units 3 & 4 (40 CFR § 52.21);OP0513

- 07 18 Draft : 05/17/2011

c. The requiremen ts of 40 CFR 60. 50 D a

– Compliance Determination Procedure and Methods ( 40 CFR 60, Subpart Da) shall apply to Units 3 & 4 (40 CFR § 52.21);

d. The requirements of 40 CFR 60. 51 D a

– Reporting Requirements ( 40 CFR 60, Subpart Da) shall apply to Units 3 & 4 (40 C FR § 52.21);

e. PPL shall operate the required monitors in accordance with the CEMS quality assurance (QA) plan submitted to the EPA in May 1998, unless an updated plan is accepted by the EPA

. This plan may be revised by PPL with approval of the Department (40 CFR § 52.21);

f. Compliance requirements of 40 CFR 60.11(a) shall be amended per Section III.C. 2 1 (40 CFR § 52.21);

g. Each monitor modular part (i.e., opacity, SO 2 , NO

x , diluent, and data handling units) of a continuous monitoring system shall attain a mi nimum annual on

- line availability time of 85% on a minimal quarterly availability of 75% for each individual quarter. Should any given yearly or quarterly availability time drop below these respective limits, PPL shall, within 90 days of the end of the fi rst unexcused year or quarter, cause to be delivered to the facility factory tested and compatible monitor module(s) which had unacceptable availability times,

unless PPL can excuse the unacceptable performance by demonstrating within ten calendar days of the end of such year or quarter, that the reason for the poor availability time has not caused another previous occurrence of unacceptable availability in question will be prevented in the future by a more effective maintenance/inventory program (40 CFR § 52.21);

h. Upon two non

- overlapping periods of unexcused, unacceptable availability of a module (yearly, quarterly or combination), PPL shall within 30 days of the end of the year or quarter of the second unacceptable availability period, install, calibrate, operate, maintain, and report emission data using the second compatible module required by (g) above (40 CFR § 52.21);

i. Within 60 days of the year of the quarter causing the second unacceptable availability period under Section (h) above PPL shall conduct a complete performance evaluation of the entire CEMS for that pollutant under 40 CFR 60.13(c) showing acceptability of the entire CEMS in question unless the module was the data handling unit alone. Within 75 days of the end of the year or quarter causin g the second unacceptable availability period, PPL shall furnish the Department with a written report of such evaluations and tests demonstrating acceptability of the system (40 CFR § 52.21); and

j. In the event of a conflict between the requirements of the referenced federal regulations and the requirements of this permit shall apply.

C.37. PPL shall monitor compliance by following the CAM Plan (Appendix I). The CAM Plan, written by PPL in accordance with ARM 17.8.1504

, is summarized in Appendix I and is availab le in full upon request by the Department or the facility (ARM 17.8.1503 and ARM 17.8.1213).

Recordkeeping

C.38. PPL shall maintain, on site, a log of the results of the daily composite coal samples as required by

Section III.C.2 9 and submit them to the Depart ment upon request (ARM 17.8.1212).

C.39. PPL shall maintain, on site, a log to record the emission limit calculations when burning fuel other than coal (ARM 17.8.1212).OP0513

- 07 19 Draft : 05/17/2011

C.40. PPL shall complete all recordkeeping for Section III.C.1 8 and III.C.33 as required by EPA ( ARM 17.8.1212).

C.41. Records shall be prepared and data kept in accordance with the Opacity CEMS Appendix E of this permit (ARM 17.8.1212).

C.42. All source

- testing recordkeeping shall be performed in accordance with the Montana Source Test

Protocol and Procedures Manual, and shall be maintained on site. Method 9 source test reports for opacity need not be submitted unless requested by the Department (ARM 17.8.106).

C.43. Records shall be prepared and data kept in accordance with 40 CFR Part 75 and Acid Rain Appendix H, the SO 2 CEMS Appendix F, and the NO

x CEMS Appendix G of this permit (ARM

17.8.1212 and 40 CFR 72

- 78).

C.44. PPL shall complete all recordkeeping for Section III.C. 19 and 2 0 as required by the Acid Rain Appendix H in this permit (ARM 17.8.1212).

C.45. PPL shall main tain on

- site records for the CEMS and the stack parameter data as required in

Section III.C.3 6 (ARM 17.8.1212).

C.46. Records shall be prepared and data kept in accordance with 40 CFR Part 64 and the CAM Appendix I of this permit (ARM 17.8.1212 and 40 CFR 64).

C.47. PPL shall maintain, under their control, all records required for compliance monitoring as a permanent business record for at least 5 years. Furthermore, the records must be available at the plant site for inspection by the Department and EPA, and must b e submitted to the Department upon request (ARM 17.8.1212).

Reporting

C.48. The annual compliance certification report required by Section V.B must contain a certification

statement for the above applicable requirements (ARM 17.8.1212)

.

C.49. The semiannual monito ring report shall provide (ARM 17.8.1212) :

a. Certification that the log of daily composite coal samples is maintained;

b. A summary of any Method 9, 5, 5B, 6, 6C , 7, or 7E test conducted during the period; the actual test report for Method 9 tests need only b e submitted to the Department, upon request, as specified by Section III.C.2 4 ;

c. Certification of submittal of excess emissions and monitoring systems performance reports in accordance with the CEMS Appendix E., F., and G;

d. Certification of compliance with 40 CFR Part 75 and Acid Rain Appendix H, Opacity CEMS Appendix E, SO 2 CEMS Appendix F, and NO

x CEMS Appendix G;

e. A summary of the stack parameter data and any other reports as required by Section III.C.4 5 ;

f. A summary of the log required by Section III.C. 32 ;

g. Certification of compliance with 40 CFR Part 64 (CAM)

- Appendix I of this permit ; andOP0513

- 07 20 Draft : 05/17/2011

h. Certification that PPL has maintained reports of any required monitoring performed during the reporting period, with all instances of deviations from any permit req uirements identified.

C.50. PPL shall submit a written report of excess emission and monitoring system performance as required by 40 CFR 60.7(c). For the purposes of the report, excess emission shall be defined as

any 6

- minute, 3

- hour, 24

- hour, or 30

- day perio d as applicable, which the average emissions of the period of concern for opacity, NO

x , SO 2 , as measured by the CEMS, exceed the applicable emissions for the periods as follows:

a. 6

- minute average applies to each 6

- minute non

- overlapping period starting on the hour;

b. 3

- hour period applies to any running 3

- hour period containing 3 contiguous one

- hour periods, starting on the hour;

c. 24

- hour period applies to any calendar day; and

d. 30

- day period applies to any running period of 30 consecutive calendar days.

C. 51. PPL shall submit the following information along with the excess emission reports:

a. The fuel feed rate and associated production figures corresponding to all periods of excess emissions (40 CFR §52.21);

b. The proximate analysis of the weekly composite s ample of the fuel fired in each unit (40 CFR §52.21); and

c. Date, time and initial calibration values for each required calibration adjustment made on any monitor during the quarter, including any time in which the monitor was removed or inoperable for any reason (40 CFR §52.21).OP0513

- 07 21 Draft : 05/17/2011

D. EU005

– Auxiliary Propane Boiler

Condition(s) Pollutant/Parameter Permit Limit Compliance Demonstration Method Frequency Reporting Requirements

D.1, D.6, D.9,
D.11, D.12 Boiler Operation Notification and log book When in

operation Semiannually

D.2, D.7, D.8,
D.9, D.10,
D.11, D.12 Opacity 20% Method 9 As required by the Department

and Section

III.A.1 Recordkeeping Semiannually

D.3, D.7, D.9,
D.11, D.12 PM 0.28 lb/MMBtu Recordkeeping Semiannually

D.4, D.7, D.8,

D .9, D.10,
D.11, D.12 PM from fuel combustion E=1.026*E

- 0.233 Method 5 As required by the Department

and Section

III.A.1 Recordkeeping Semiannually

D.5, D.7, D.9,
D.11, D.12 Sulfur in fuel 1 lb sulfur/

MMBtu Recordkeeping Semiannually

Conditions

D.1. PPL shall notify the Department of both start up and shut down of the auxiliary propane heater within 5 days of both start up and shut down. During operation, the auxiliary propane boiler shall operate in accordance with this Section III.D of this permit (ARM 17.8.1215).

D.2. PPL may not cause or authorize to be discharged into the atmosphere from the boiler, when in operation, visible emissions that exhibit an opacity of 20% or greater, unless specified elsewhere in this permit (ARM 17.8.304 and ARM 17.8.752)

.

D.3. When the boiler is in operation, PM emissions from the boiler shall not exceed 0.28 lb/MMBtu (ARM 17.8.752).

D.4. PPL shall not cause or authorize PM caused by the combustion of fuel to be discharged from any stack or chimney into the outdoor atmosphere in excess of E = 1.026*H

- 0.233 for existing fuel burning equipment, where H = heat input capacity in MMBtu/hr and E = maximum allowable emission rate in lb/MMBtu (ARM 17.8.309).

D.5. PPL shall not fire in the boiler liquid or solid fuels containing sulfur in exce ss of 1.0 lb of sulfur/MMBtu (ARM 17.8.322).

Compliance Demonstration

D.6. Compliance with the operational and notification requirement in Section III.D.1 may be satisfied by notifying the Department within 5 days of start up and shut down of the auxiliary pr opane boiler and PPL shall prepare a log to record the time and dates when the auxiliary propane boiler is operated (ARM 17.8.1213).

D.7. PPL shall burn propane in the emission unit while in operation to monitor compliance with the

emission limits in Section I II.D.2, 3, 4, and 5 (ARM 17.8.1213).OP0513

- 07 22 Draft : 05/17/2011

D.8. As required by the Department and Section III.A.1, PPL shall perform a Method 5 or a Method 9

test in accordance with the Montana Source T est Protocol and Procedures Manual (ARM 17.8.1213 and ARM 17.8.106).

Recordkeep ing

D.9. PPL shall maintain on site an operations and maintenance log, which includes the type of fuel fired in the boiler each day it is in operation and the information stated in Section III.D.6. The log

shall include the date and time of the maintenance an d the type of maintenance that was performed (ARM 17.8.1212).

D.10. Method 5 and Method 9 tes t reports must be maintained on

- site and must be submitted to the Department upon request and in accordance with the Montana Source Test Protocol and

Procedures Manual (ARM 17.8.1212).

Reporting

D.11. The annual compliance certification report required by Section V.B must contain a certification statement for the above applicable requirements (ARM 17.8.1212)

.

D.12. The semiannual monitoring report shall provide (ARM 17.8.1212):

a. Certification that the log of operating times was maintained;

b. Summary of any required test that was conducted during the reporting period as required by

Section III.D.10 ; and

c. Certification of fuel type used in the emission unit during times of operati on.OP0513

- 07 23 Draft : 05/17/2011

E. EU006

– Building Heater Boiler

Condition(s) Pollutant/Parameter Permit Limit Compliance Demonstration Method Frequency Reporting Requirements

E.1, E.5, E.9,
E.13, E.14 Building heater boiler Operation Notification When operating Semiannuall y

E.2, E.6, E.10,
E.12, E.13,

E.14 PM from fuel combustion E = 1.026 * E

- 0.233 Method 5 As required by the Department

and Section

III.A.1
E.3, E.7, E.10,
E.12, E.13,

E.14 Opacity 20% Method 9 As required by the Department

and Section

III.A.1
E.4, E.8 , E.11,
E.13, E.14 Sulfur in fuel 1lb sulfur/MMBtu Type of fuel

fired Ongoing

Conditions

E.1. Colstrip shall notify the Department of both start up and shut down of the building heater boiler within 5 days of both start up and shut down. During operation, the building heater boiler shall operate in accordance with this Section III.E of this permit (ARM 17.8.1215).

E.2. PPL shall not cause or authorize PM caused by the combustion of fuel to be discharged from any stack or chimney into the outdoor atmosphere in e xcess of E = 1.026 * H

- 0233 for existing fuel burning equipment, where H = heat input capacity in MMBtu/hr and E = maximum allowable emission rate in lb/MMBtu (ARM 17.8.309).

E.3. PPL may not cause or authorize emissions to be discharged into the outdoor atmos phere from any source that exhibits an opacity of 20% or greater averaged over 6 consecutive minutes (ARM 17.8.304(2)).

E.4. PPL shall not burn liquid or solid fuel containing sulfur in excess of 1 lb of sulfur/MMBtu fired (ARM 17.8.322).

Compliance Demonstra tion

E.5. Compliance with the operational and notification requirement may be satisfied by notifying the Department within 5 days of start up and shut down of the building heater boiler. PPL shall use the computer point log to record the time and dates when t he building heater boiler is operated (ARM 17.8.1213).

E.6. As required by the Department and Section III.A.1, PPL shall perform a Method 5 test in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106).

E.7. As required by the Depar tment and Section III.A.1, PPL shall perform a Method 9 test on the building heater boiler in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.1213 and ARM 17.8.106).

E.8. PPL shall burn oil with a sulfur content that does not e xceed 1 lb of sulfur/MMBtu to monitor compliance with the limit in Section III.E.4 (ARM 17.8.1213).

Recordkeeping

E.9. PPL shall maintain on site the computer point log as required by Section III.E.5 (ARM 17.8.1212).OP0513

- 07 24 Draft : 05/17/2011

E.10. Method 5 and Method 9 test reports must b e maintained on

- site and must be submitted to the Department upon request and in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.1212).

E.11. PPL shall maintain on site copies of the supplier’s fuel analysis for each fuel delive ry. The analysis may be based on an average fuel produced over a period of time (ARM 17.8.1212).

Reporting

E.12. Any compliance source test reports must be submitted in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106).

E.13. Th e annual compliance certification report required by Section V.B must contain a certification statement for the above applicable requirements (ARM 17.8.1212)

.

E.14. The semiannual monitoring report shall provide (ARM 17.8.1212) :

a. Certification that the comput er point log is maintained on site as required by Section III.E.9;

b. Certification that copies of the supplier’s fuel analysis are maintained on site as required by Section III.E.12 and submittal of an average sulfur content of the fuel; and

c. Summary of any required test that was conducted during the reporting period as required by

Section III.E.10.OP0513

- 07 25 Draft : 05/17/2011

F. EU007, EU008, and EU009

– Coal Handling Systems (Units 1 & 2

– Enclosed conveyors, dust suppressant, telescopic chute), Coal Handling Systems (Units 3 & 4

– si los, distribution bin, surge pile tunnel, crushing and sampling house, and vacuum cleaning system) and Coal Piles

Condition(s) Pollutant/Parameter Permit Limit Compliance Demonstration Method Frequency Reporting Requirements

F.1, F.2, F.5,
F.7, F .8, F.10,
F.13, F.14 Opacity 20% Visual Survey Bi

- monthly Semiannually

Method 9 Semiannually

F.3, F.6, F.10,
F.11, F.13,

F.14 PM E = 55 * p0.11

– 40 Method 5 As required by the Department and

Section III.A.1
F.4, F.9, F.12,
F.13, F.14 Uncover ed coal storage piles sealed Operation of

controls Ongoing

Conditions

F.1. PPL may not cause or authorize emissions from the Coal Handling Systems and Coal Piles to be discharged into the outdoor atmosphere that exhibit an opacity of 20% or greater averaged over 6 consecutive minutes (ARM 17.8.304(2)).

F.2. PPL shall not cause or authorize the production, handling transportation, or storage of any material unless reasonable precautions to control emissions of PM are taken. Such emissions of airborne particulate from any stationary source shall not exhibit an opacity of 20% or greater averaged over 6 consecutive minutes (ARM 17.8.308(1)).

F.3. The particulate emissions from process weight shall not exceed the value calculated by E = 55.0 *

p 0.11

– 40, where E = Emiss ions in pounds per hour and P = process weight rate in tons per hour (ARM 17.8.310).

F.4. Uncovered coal storage piles, which are not routinely in use, must be sealed to prevent airborne emissions (ARM 17.8.749).

Compliance Demonstration

F.5. PPL shall conduct ei ther a semiannual Method 9 source test or a weekly visual survey of visible emissions on the Coal Handling Systems and Coal Piles. Under the visual survey option, once per calendar week, during daylight hours, PPL shall visually survey the Coal Handling S ystems
and Coal Piles for any visible emissions. If visible emissions are observed duri ng the visual survey, PPL must conduct a Method 9 source test. The Method 9 source test must begin within one hour of any observation of visible emissions. If visible emissions meet or exceed 15% opacity based on the Method 9 source test, PPL shall immediately take corrective action to

contain or minimize the source of emissions. If corrective ac tions are taken, then PPL shall immediately conduct a subsequent visual su rvey (and subsequent Method 9 source test if visible emissions remain) to monitor compliance. The person conducting the visual survey shall record the results of the survey (including the results of any Method 9 source test performed) in a log, including any corrective action taken. Conducting a visual survey does not relieve PPL of the liability for a violation determined using Method 9 (ARM 17.8.101(27)).

If the visual surveys are not performed once per calendar week as specified above during the

repor ting period, then PPL shall perform the Method 9 source tests on the Coal Handling Systems

and Coal Piles for that reporting period.OP0513

- 07 26 Draft : 05/17/2011

Method 9 source tests must be performed in accordance with the Montana Source Test Protocol and Procedures Manual, except that prior notification of the test is not required. Each observation period must be a minimum of 6 minutes unless any one reading is 20% or greater, then the observation period must be a minimum of 20 minutes or until a violation of the standard has been documented, whichever is a shorter period of time (ARM 17.8.1213).

F.6. As required by the Department and Section III.A.1, PPL shall perform a Method 5 in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.1213).

F.7. For Units 3 & 4

, PPL shall use a dust suppression system using chemical or water sprays in Lowering Well “A”, Lowering Well “B”, the coal at transfer points in area “C” transfer house, and the vibratory feeders associated with Conveyor 80A as necessary to monitor complia nce with Section III.F.2 (ARM 17.8.1213).

F.8. For Units 1 & 2, PPL shall use enclosed conveyors and fabric filter control to contain dust from handling and crushing materials. A telescopic chute shall be used to contain dust from materials falling from Lower ing Wells #6, and #7. Dust suppressant shall be used as necessary to reduce particulate emission from coal (ARM 17.8.1213).

F.9. PPL shall maintain an on site log of all actions taken to monitor compliance with Section III.F.4. The log should include the act ion taken along with the date and time the action occurred (ARM 17.8.1213).

Recordkeeping

F.10. All source test recordkeeping shall be performed in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106). If Method 9 tests are c onducted, the test reports must be maintained on

- site and must be submitted to the Department upon request. If visual surveys are performed, PPL shall maintain a log to verify that the visual surveys were performed as specified in Section III.F.5. Each l og entry must include the date, time, results of survey (and results of subsequent Method 9, if applicable), and observer’s initials If any corrective action is required, the time, date, observer’s initials, and any preventive or corrective

action taken m

ust be recorded in the log (ARM 17.8.1212).

F.11. Method 5 test reports must be maintained on site and must be submitted in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106 and ARM 17.8.1212).

F.12. Recordkeeping shall be maintain ed on site of the log required in Section III.F.9 (ARM 17.8.1212).

Reporting

F.13. The annual compliance certification report required by Section V.B must contain a certification statement for the above applicable requirements (ARM 17.8.1212)

.

F.14. The semiannua l monitoring report shall provide (ARM 17.8.1212) :

a. Certification that the visual surveys were performed and logged as specified by Section III.F.5 or Method 9 test results as required by Section III.F.10.

b. Certification that a log of corrective action was maintained as specified by Section III.F.12,

and

c. Summary of any required Method 5 test that was conducted as required by Section III.F.11.OP0513

- 07 27 Draft : 05/17/2011

G. EU010

– Emergency Diesel Generators and EU011

- Internal Combustion Engines (vehicles)

Condition(s) Pollutant/ Parameter Permit Limit Compliance Demonstration Method Frequency Reporting Requirements

G.1, G.4, G.7,
G.9, G.10,

G.11 Opacity 20% Method 9 As required by the Department

and Section

III.A.1 Semiannually

G.2, G.5, G.7,
G.9, G.10,

G.11 Particulate from fuel

combustion E = 1.026 * H

- 0.233 Method 5 As required by the Department

and Section

III.A.1
G.3.,G.6., G.8.,
G.10, G.11 Hours of Operation Operations Limited to Specific

Situations Operating Log Monthly

Conditions

G.1. PPL shall not cause or auth orize emissions to be discharged into the outdoor atmosphere from any source that exhibits an opacity of 20% or greater averaged over 6 consecutive minutes (ARM 17.8.304(2 ) ).

G.2. PPL shall not cause or authorize PM caused by the combustion of fuel to be disch arged from any stack or chimney into the outdoor atmosphere in excess of E = 1.026 * H

- 0.233 for existing fuel burning equipment, where H = heat input capacity in MMBtu/hr and E maximum allowable emission rate in lbs/MMBtu (ARM 17.8.309).

G.3. PPL shall limit the use of the emergency diesel generators to times of need for emergency power generation (ARM 17.8.756).

Compliance Demonstration

G.4. As required by the Department and Section III.A.1, PPL shall perform a Method 9 test in

accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106 and ARM 17.8.1213).

G.5. As required by the Department and Section III.A.1, PPL shall perform a Method 5 in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106).

G.6. Compliance wi th the limits in Section III.G.3 shall be demonstrated by logging the date, time, hours of operation, reason for use, and operator’s initials whenever the emergency diesel generators are utilized for emergency power generation (ARM17.8.1213).

Recordkeepin g

G.7. All source test recordkeeping shall be performed in accordance with the test method used and the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106).

G.8. PPL shall maintain on site a log as described in Section III.G.6. PPL shall include in that log the fuel type used whenever the emergency generators are used for emergency power generation. In addition, PPL shall log the monthly sum of the total hours of operation of the emergency generators for the previous rolling 12

- month time period (AR M 17.8.1212).OP0513

- 07 28 Draft : 05/17/2011

Reporting

G.9. All source test reports must be submitted to the Department in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.9.106).

G.10. The annual compliance certification report required by Section V.B must conta in a certification statement for the above applicable requirements (ARM 17.8.1212)

.

G.11. The semiannual monitoring report shall provide (ARM 17.8.1212):

a. A summary of any Method 9 or Method 5 tests that were conducted; and

b. Certification that the emergency g enerators were only used when power was interrupted or as necessary for routine maintenance of the generator and that the log required in Section III.G.6 and III.G.8 (including the total hours of operation) was maintained.OP0513

- 07 29 Draft : 05/17/2011

H. EU012

- Lime Handling System

Condition(s) Pollutant/Parameter Permit Limit Compliance Demonstration Method Frequency Reporting Requirements

H.1, H.4, H.7,
H.10, H.11 Reasonable Precautions 20% Operation of

controls Ongoing Semiannually

H.2, H.5, H.8,
H.10, H.11 Opacity 20 % Method 9 Semiannual

H.3, H.6, H.9,
H.10, H.11 PM E = 55 * p 0.11

– 40 Method 5 As required by the Department

and Section

III.A.1

Conditions

H.1. PPL shall not cause or authorize the production, handling, transportation, or storage of any

material unless reasonable precautions to control emissions of airborne PM are taken (ARM 17.8.308(1)).

H.2. PPL shall not cause or authorize emissions to be discharged into the outdoor atmosphere from any source that exhibits an opacity of 20% or greater averaged over 6 cons ecutive minutes (ARM 17.8.304(2)).

H.3. The particulate emissions from process weight shall not exceed the value calculated by E = 55.0 *

P 0.11

– 40, where E is the rate of emissions in pounds per hour and P is the process weight rate in tons per hour (ARM 17. 8.310).

Compliance Demonstration

H.4. PPL shall operate the pneumatic system when unloading lime to monitor compliance with the reasonable precautions requirement (ARM 17.8.1213).

H.5. As required by the Department and Section III.A.1, PPL shall perform a Method 9 test for the visible emissions from the plant roads. Method 9 source tests must be performed in accordance with the Montana Source Test Protocol and Procedures Manual, except that prior notification of the test is not required (ARM 17.8.106 and ARM 17.8 .1213).

H.6. As required by the Department and Section III.A.1, PPL shall perform a Method 5 in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.1213).

Recordkeeping

H.7. PPL shall maintain a log of the operation of the pneumatic s ystem as required in Section III.H.4. The log shall include date and time of operation of the pneumatic conveyor coinciding with the unloading of lime (ARM 17.8.1212).

H.8. Method 9 test reports must be maintained on site and must be submitted to the Departme nt upon request in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106).

H.9. Method 5 test reports must be maintained on site and must be submitted to the Department upon request in accordance with the Montana Source Test Prot ocol and Procedures Manual (ARM 17.8.106).OP0513

- 07 30 Draft : 05/17/2011

Reporting

H.10. The annual compliance certification report required by Section V.B must contain a certification statement for the above applicable requirements (ARM 17.8.1212)

.

H.11. The semiannual monitoring report shal l provide (ARM 17.8.1212):

a. A summary of any Method 9 or Method 5 tests conducted, and

b. Certification that a log of operation was maintained as required in Section III.H.7.OP0513

- 07 31 Draft : 05/17/2011

I. EU013

- Plant Roads; EU014

– Process Ponds

Condition(s) Pollutant/Parameter P ermit Limit Compliance Demonstration Method Frequency Reporting Requirements

I.1, I.3

– I.6 Reasonable Precautions 20% Visual Surveys Bi

- monthly Semiannually

Method 9 Semiannually

I.2

– I.6 Opacity 20% Visual Surveys Bi

- monthly

Method 9 Semiannually

Conditions

I.1. PPL shall not cause or authorize the production, handling, transportation, or storage of any material unless reasonable precautions to control emissions of airborne PM are taken (ARM 17.8.308).

I.2. PPL may not cause or authorize emissions from the plant roads to be discharged into the outdoor atmosphere that exhibit an opacity of 20% or greater averaged over 6 consecutive minutes (ARM 17.8.304(2)).

Compliance Demonstration

I.3. PPL shall conduct either a semiannual Method 9 source t est or a weekly visual survey of visible

emissions on the Plant Roads. Under the visual survey option, once per calendar week, during daylight hours, PPL shall visually survey the Plant Roads for any visible emissions. If visible

emissions are observed d uri ng the visual survey, PPL must conduct a Method 9 source test. The

Method 9 source test must begin within one hour of any observation of visible emissions. If visible emissions meet or exceed 15% opacity based on the Method 9 source test, PPL shall

imm ediately take corrective action to contain or minimize the source of emissions. If corrective

ac tions are taken, then PPL shall immediately conduct a subsequent visual survey (and subsequent Method 9 source test if visible emissions remain) to monitor com pliance. The person conducting the visual survey shall record the results of the survey (including the results of any Method 9 source test performed) in a log, including any corrective action taken. Conducting a visual survey does not relieve PPL of the liability for a violation determined using Method 9 (ARM 17.8.101(27)).

If the visual surveys are not performed once per calendar week as specified above during the reporting period, then PPL shall perform the Method 9 source tests on the Plant Roads for that reporting period.

Method 9 source tests must be performed in accordance with the Montana Source Test Protocol and Procedures Manual, except that prior notification of the test is not required. Each observation period must be a minimum of 6 minutes u nless any one reading is 20% or greater, then the observation period must be a minimum of 20 minutes or until a violation of the standard has been documented, whichever is a shorter period of time (ARM 17.8.1213).

Recordkeeping

I.4. All source test recordkeep ing shall be performed in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106). If Method 9 tests are conducted, the test reports must be maintained on site and must be submitted to the Department upon request. If

visual surveys are performed, PPL shall maintain a log to verify that the visual surveys were performed as specified in Section III.I.3. Each log entry must include the date, time, results of survey (and results of subsequent Method 9, if applicable ), and observ er’s initials If any corrective action is required, the time, date, observer’s initials, and any preventive or corrective action taken must be recorded in the log (ARM 17.8.1212).OP0513

- 07 32 Draft : 05/17/2011

Reporting

I.5. The annual compliance certification report required and logged as specified by Section V.B must contain a certification statement for the above applicable requirements (ARM 17.8.1212)

.

I.6. The semiannual monitoring report shall provide certification that the visual surveys were performed and logged as specified by Sec tion III.I.3 or Method 9 source test results (ARM 17.8.1212).OP0513

- 07 33 Draft : 05/17/2011

J. EU015

– Underground Gasoline Tank

Condition(s) Pollutant/Parameter Permit Limit Compliance Demonstration Method Frequency Reporting Requirements

J.1, J.3, J.5,
J.7, J.8 , J.9 Opac ity 20% Method 9 As required by the Department

and Section

III.A.1 Semiannual ly

J.2, J.4, J.6, J.8

, J.9 Underground gasoline tank 250 gallons or > gasoline in tank Submerged fill pipe Ongoing/when

loading

Conditions

J.1. PPL shall not cause or authorize em issions to be discharged into the outdoor atmosphere from any source that exhibits an opacity of 20% or greater averaged over 6 consecutive minutes (ARM 17.8.304(2)).

J.2. PPL shall not load or permit the loading of gasoline into any stationary tank with a cap acity of 250 gallons or more from any tank truck or trailer, except through a permanent submerged fill pipe, unless such tank is equipped with a vapor loss control device or is a pressure tank (ARM 17.8.324(3)).

Compliance Demonstration

J.3. As required by th e Department and Section III.A.1, PPL shall perform a Method 9 test to monitor compliance with the permit limit in Section III.J.1. The testing shall be performed in accordance with the Montana Source Test Protocol and Procedures Manual, or another method approved by the Department (ARM 17.8.106 and ARM 17.8.749).

J.4. PPL has an installed tank with a permanently submerged fill pipe and shall continue to operate the submerged fill pipe during loading (ARM 17.8.749).

Recordkeeping

J.5. All compliance source

- testin g recordkeeping shall be performed in accordance with the Source Test Protocol and Procedures Manual, and shall be maintained on site. Method 9 source test reports for opacity need not be submitted unless requested by the Department (ARM 17.8.106).

J.6. PPL s hall maintain a log to monitor continuous use of the submerged fill pipe by maintaining a log of tank loading. The log shall include the date and time of loading, and that a permanent submerged fill pipe was used or that the tank is equipped with a vapor loss control device or is a pressure tank (ARM 17.8.1213).

Reporting

J.7. Method 9 test reports as specified in Section III.J.5 shall be submitted in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106).

J.8. The annual compliance certification report required by Section V.B must contain a certification statement for the above applicable requirements (ARM 17.8.1212)

.

J.9. The semiannual monitoring report shall provide (ARM 17.8.1212):

a. Certification that the log of tank loading was m aintained; and

b. A summary of any Method 9 test conducted during the period.OP0513

- 07 34 Draft : 05/17/2011

K. EU016

– Alternate Fuel Loading Systems (Syn Coal and Petroleum Coke)

Condition(s) Pollutant/Parameter Permit Limit Compliance Demonstration Method Frequency Reporting Requirements

K.1, K.9 Reasonable Precautions 20% opacity Operation of

controls Ongoing Semiannual ly

K.2 , K.10 Opacity 20% opacity Method 9 Semiannual

K.3 40 CFR 60, Subpart Y 40 CFR 60, Subpart

Y 40 CFR 60,

Subpart Y 40 CFR 60,

Subpart Y

K.4

, PM E = 55 * p 0.11

– 40 Method 5 As required by the Department

and Section

III.A.1
K.5, K.6, K.7 , K.9 Maximum air pollution control Log Ongoing

K.8 Cover Piles Log Ongoing

Conditions

K.1. PPL shall not cause or authorize the production, handling, transporta tion, or storage of any material unless reasonable precautions to control emissions of airborne PM are taken (ARM 17.8.308(1)).

K.2. PPL shall not cause or authorize emissions to be discharged into the outdoor atmosphere from any source that exhibits an opacit y of 20% or greater averaged over 6 consecutive minutes (ARM 17.8.304(2) and 40 CFR 60, Subpart Y).

K.3. PPL shall comply with all applicable standards and limitations, and the reporting, recordkeeping, and notification requirements contained in 40 CFR 60, Sub part Y. Subpart Y affected sources include the truck dump station, the lime silo bin vent, and any other affected source constructed or modified after October 24, 1974 (ARM 17.8.340 and 40 CFR 60, Subpart Y).

K.4. The particulate emissions from process weight shall not exceed the value calculated by E = 55.0 *

P 0.11

– 40, where E is the rate of emissions in pounds per hour and P is the process weight rate in tons per hour (ARM 17.8.310).

K.5. PPL shall maintain and operate the skirting, minimal volumes, and small drop distances at the

off

- loading system and the bin vent filter system to provide the maximum air pollution control for that it was designed (ARM 17.8.752).

K.6. PPL shall control the petroleum coke truck dump station particulate emissions by a partially

enc losed dump basin, minimized dropping distances, covered conveyor belts, and an underground and enclosed feeder (ARM 17.8.749).

K.7. PPL shall control the petroleum coke rail dump station particulate emissions by an underground and enclosed dump basin, minimize d dropping distances, covered conveyor belts, and an underground and enclosed feeder (ARM 17.8.749).

K.8. Uncovered syn coal and pet roleum coke storage piles, which are not routinely in use, must be sealed to prevent airborne emissions (ARM 17.8.749).OP0513

- 07 35 Draft : 05/17/2011

Complia nce Demonstration

K.9. PPL shall maintain records of all air pollution control measures taken to minimize PM emissions from transfer of petroleum coke and syncoal, in order to monitor compliance with Section III.K.1, III.K.5, III.K.6, and III.K.7 (ARM 17.8.121 3).

K.10. As required by the Department and Section III.A.1, PPL shall perform a Method 9 test for the visible emissions from the plant roads. Method 9 source tests must be performed in accordance with the Montana Source Test Protocol and Procedures Manual, ex cept that prior notification of the test is not required (ARM 17.8.106 and ARM 17.8.1213).

K.11. PPL shall monitor compliance with Section III.K.3 by conducting all monitoring and testing required by 40 CFR 60, Subpart Y (ARM 17.8.340 and 40 CFR 60, Subpart Y).

K.12. As required by the Department and Section III.A.1, PPL shall perform a Method 5 in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.1213).

K.13. Whenever alternate fuels are on site, PPL shall maintain an on

- site log of all act ions taken to monitor compliance with Section III.K.8. The log should include the action taken along with the date and time the action occurred (ARM 17.8.1213).

Recordkeeping

K.14. PPL shall maintain a log of the air pollution control measures, as required i n Section III. K. 9 . The log shall include date and time of operation of the pneumatic conveyor coinciding with the unloading of lime (ARM 17.8.1212).

K.15. Method 9 test reports must be maintained on site and must be submitted to the Department upon request in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106).

K.16. PPL shall maintain a log, under PPL ’s control, for the testing conducted as required by 40 CFR 60.254 (ARM 17.8.340 and 40 CFR 60, Subpart Y).

K.17. Method 5 test reports mu st be maintained on site and must be submitted to the Department upon request in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106).

K.18. PPL shall maintain on site records of the log required in Section III.K.1 3 (ARM 17.8.12 12).

Reporting

K.19. The annual compliance certification report required by Section V.B must contain a certification statement for the above applicable requirements (ARM 17.8.1212).

K.20. The semiannual monitoring report shall provide (ARM 17.8.1212):

a. A summary of any required test that was conducted during the reporting period

,

b. Certification that a log of operation was maintained as required in Section III. K.1 3 ;

c. Certification of compliance with 40 CFR 60, Subpart Y; and

d. Certification that a log of correctiv e action was maintained as specified by Section III.K.1 8

.OP0513

- 07 36 Draft : 05/17/2011

L. EU017

– Tangential Coal Fired Units 1

- 4 Mercury Emissions

Condition(s) Pollutant/

Parameter Permit Limit Compliance Demonstration Method Frequency Reporting Requirements

L.1., L. 2., L.3.,
L.4., L.5., L.6.,
L.7., L.8., L.9. Mercury

Emissions 0.9 lb/TBtu and

Installation/ Operation of Mercury Control System MEMS Ongoing Quarterly

Conditions

L.1. Beginning January 1, 2010, facility

- wide emissions of mercury (Hg) shall not exceed 0.9 po unds per trillion British thermal units (lb/TBtu), calculated as a rolling 12

- month average. The facility

wide emissions shall be calculated according to the following equation (ARM 17.8.771):

Facility

- wide Hg emissions = (1/4) × (Unit1 lb/TBtu + Unit2 lb/ TBtu + Unit3 lb/TBtu + Unit4 lb/TBtu )

Where: Unit1 lb/TBtu = rolling 12

- month mercury emissions from Unit 1 as an average of the

last 12 individual calendar monthly averages.

Unit2 lb/TBtu = rolling 12

- month mercury emissions from Unit 2 as an average of the last 12 individual calendar monthly averages.

Unit3 lb/TBtu = rolling 12

- month mercury emissions from Unit 3 as an average of the last 12 individual calendar monthly averages.

Unit4 lb/TBtu = rolling 12

- month mercury emissions from Unit 4 as an average of the last 12 individual calendar monthly averages.

L.2. On each Unit 1

- 4, PPL shall install a mercury control system that oxidizes and sorbs emissions of mercury. PPL shall implement the operation and maintenance of mercury control systems on or

before Janu ary 1, 2010 (ARM 17.8.771).

Compliance Demonstration

L.3. PPL shall comply with all applicable standards and limitations, and the applicable operating, reporting, recordkeeping, and notification requirements contained in 40 CFR Part 75 (ARM 17.8.771).

L.4. Enfo rcement of Section III. L.1., where applicable, shall be determined by utilizing data taken from Mercury Emission Monitoring Systems (MEMS), installed on each Unit 1

- 4. The MEMS shall be comprised of equipment as required in 40 CFR 75.81(a) and defined in 40 CFR 72.2. The above does not relieve PPL from meeting any applicable requirements of 40 CFR Part 75. Testing requirements shall be as specified in 40 CFR Part 75, and shall conform to the requirements of the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106 and ARM 17.8.771).

L.5. The MEMS shall be installed, certified, and operating on each Unit 1

- 4 stack outlet on or before January 1, 2010. MEMS shall comply with the applicable provisions of 40 CFR Part 75. The

monitors shall also conform with requirements included in Appendix J (ARM 17.8.771).OP0513

- 07 37 Draft : 05/17/2011

Recordkeeping

L.6. PPL shall conduct recordkeeping pursuant to Appendix J (ARM 12.8.1212).

Reporting

L.7. PPL shall report to the Department within 30 days after the end of each calendar quarter, as

d escribed in Appendix J (ARM 17.8.749):

a. For each Unit 1

- 4, the monthly average lb/TBtu mercury emission rate, for each month of the

quarter;

b. For each Unit 1

- 4, the 12

- month rolling average lb/TBtu mercury emission rate, for each month of the repor ting quarter;

c. The 12

- month facility

- wide rolling average lb/TBtu mercury emission rate, calculated according to Section I II. L.1 , for each month of the reporting quarter; and

d. For each Unit 1

- 4, the number of operating hours that the MEMS were unav ailable or not operating within quality assurance limits (monitor downtime).

L.8. The first quarterly report must be received by the Department by April 30, 2010, but shall not

include 12

- month rolling averages. The first quarterly report to include 12

- month r olling averages must be received by the Department by January 30, 2011.

L.9. The annual compliance certification required by Section V.B must contain a certification statement for the above applicable requirements (ARM 17.8.1212).OP0513

- 07 38 Draft : 05/17/2011

M. EU018

– Mercury Oxidizer/ Sorbent Handling Systems ( Units 1

- 4)

Condition(s) Pollutant/

Parameter Permit Limit Compliance Demonstration Method Frequency Reporting Requirements

M.1., M.3., M.4.,
M.5., M.6., M.7. Opacity 20% Visual Survey/

Method 9 Bi

- monthly Semiannual

M.2., M.3., M.4.,
M.5., M.6., M.7. Oxidizer/Sorbent

Handling System Operate/

maintain bin

vent Semiannual

Conditions

M.1. PPL shall not cause or authorize emissions to be discharged into the outdoor atmosphere from any source that exhibits an opacity of 20% or greater averaged over 6 consecutive minutes (ARM 17.8.304(2)).

M.2. PPL shall operate and maintain the mercury oxidizer/sorbent handling system s , including the bin vent filter system s , to provide the maximum air pollution control for that which the sy stem s were designed (ARM 17.8.749).

Compliance Demonstration

M.3. PPL shall conduct either a semiannual Method 9 source test or a weekly visual survey of visible

emissions on the Mercury Oxidizer/Sorbent Handling System. Under the visual survey option,

once per calendar week, during daylight hours, PPL shall visually survey Mercury Oxidizer/Sorbent Handling System for any visible emissions. If visible emissions are observed during the visual survey, PPL must conduct a Method 9 source test. The Method 9 sourc e test must begin within one hour of any observation of visible emissions. If visible emissions meet or exceed 15% opacity based on the Method 9 source test, PPL shall immediately take corrective

action to contain or minimize the source of emissions . If corrective ac tions are taken, then PPL shall immediately conduct a subsequent visual survey (and subsequent Method 9 source test if visible emissions remain) to monitor compliance. The person conducting the visual survey shall

record the results of the su rvey (including the results of any Method 9 source test performed) in a log, including any corrective action taken. Conducting a visual survey does not relieve PPL of the liability for a violation determined using Method 9 (ARM 17.8.101(27)).

If the visu al surveys are not performed once per calendar week as specified above during the reporting period, then PPL shall perform the Method 9 source tests on Mercury Oxidizer/Sorbent Handling System for that reporting period.

Method 9 source tests must be perfo rmed in accordance with the Montana Source Test Protocol and Procedures Manual, except that prior notification of the test is not required. Each observation period must be a minimum of 6 minutes unless any one reading is 20% or greater, then the

observati on period must be a minimum of 20 minutes or until a violation of the standard has been documented, whichever is a shorter period of time (ARM 17.8.1213).

Recordkeeping

M.4. All source test recordkeeping shall be performed in accordance with the Montana Sourc e Test Protocol and Procedures Manual. If Method 9 tests are conducted, the test reports must be

maintained on

- site and must be submitted to the Department upon request. If visual surveys are performed , PPL shall maintain a log to verify that the visual surveys were performed as specified in Section III.M.3. Each log entry must include the date, time, results of survey (and results ofOP0513

- 07 39 Draft : 05/17/2011

subsequent Method 9, if applicable ), and observer’s initials If any corrective action is required,
the time, date, obser ver’s initials, and any preventive or corrective action taken must be recorded in the log (ARM 17.8.1212).

Reporting

M.5. All method reports shall be submitted in accordance with the Montana Source Test Protocol and Procedures Manual (ARM 17.8.106 and ARM 17. 8.1212).

M.6. The annual compliance certification required by Section V.B must contain a certification statement for the above applicable requirements (ARM 17.8.1212).

M.7. The semiannual report shall provide (ARM 17.8.1212) :

a. A summary of any corrective action pe rformed as a result of the visual survey requirement; and

b. A summary of the results of any Method 9 source tests performed during the semiannual period.OP0513

- 07 40 Draft : 05/17/2011 SECTION IV. NON

- APPLICABLE REQUIREMENTS

Air Quality Administrative Rules of Montana (ARM) and Fed eral Regulations identified as not applicable to the facility or to a specific emissions unit at the time of the permit issuance are listed below (ARM 17.8.1214). The following list does not preclude the need to comply with any new requirements that may

b ecome applicable during the permit term.

A. Facility

- Wide

The following table contains non

- applicable requirements, which are administrated by the Air Resources Management Bureau of the Department of Environmental Quality.

Rule Citation Reason

40 CFR 60 S ubparts C, Ca, Cb 40 CFR 60 Subparts Da, Db, Dc 40 CFR 60 Subparts E

- J 40 CFR 60 Subparts K, Ka, Kb 40 CFR 60 Subparts L

- Z 40 CFR 60 Subparts AA

- EE 40 CFR 60 Subparts GG

- HH 40 CFR 60 Subparts KK

- NN 40 CFR 60 Subparts PP

- XX 40 CFR 60 Subparts AAA

- BBB

40 CFR 60 Subparts DDD 40 CFR 60 Subparts FFF

- LLL 40 CFR 60 Subparts NNN

- VVV 40 CFR 61 Subparts B

- F 40 CFR 61 Subparts H

- L 40 CFR 61 Subparts N

- T 40 CFR 61 Subparts V

- W 40 CFR 61 Subpart Y 40 CFR 61 Subpart BB 40 CFR 61 Subpart FF 40 CFR 63 Subparts F

- I

40 CFR 6 3 Subparts L

- O 40 CFR 63 Subpart Q 40 CFR 63 Subpart R 40 CFR 63 Subpart T 40 CFR 63 Subpart W 40 CFR 63 Subpart X 40 CFR 63 Subpart EE These requirements are not applicable because the facility is not an affected source as defined in these regulations.

40 CFR 82 Subpart A 40 CFR 82 Subpart C 40 CFR 82 Subpart D 40 CFR 82 Subpart E 40 CFR 82 Subpart G The facility does not conduct the activities addressed by

these rulesOP0513

- 07 41 Draft : 05/17/2011

B. Emission Unit s

Emission

Unit s Rule Citation Reason

State Federal

EU 005,
EU006,
EU007,
EU008,
EU009,

EU013 40 CFR 60 Subpart D 40 CFR 82 Subpart B

40 CFR 72

- 73

40 CFR 75

- 78 This emitting unit is not in the source category or the equipment is not used at the facility

EU001,
EU002,
EU003,

EU004 40 CFR 73 Subpart G

40 CFR 82 Subpart BOP0513

- 07 42 Draft : 05/17/2011 SECTION V. GENERAL PERMIT CONDITIONS

A. Compliance Requirements ARM 17.8, Subchapter 12, Operating Permit Program §1210(2)(a)

- (c)&(e), §1206(6)(c)&(b)

1. The permittee must comply with all conditions of the permit. Any noncompliance with the

t erms or conditions of the permit constitutes a violation of the Montana Clean Air Act, and may result in enforcement action, permit modification, revocation and reissuance, or termination, or denial of a permit renewal application under ARM Title 17, Chapt er 8, Subchapter 12.

2. The filing of a request by the permittee for a permit modification, revocation and reissuance, or termination, or of a notification of planned changes or anticipated noncompliance does not stay any permit condition.

3. 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 the permit. If appropriate, this factor may be considered as a mitigating f actor in assessing a penalty for noncompliance with an applicable requirement if the source demonstrates that both the health, safety or environmental impacts of halting or reducing operations would be more serious than the impacts of continuing operations , and that such health, safety or environmental impacts were unforeseeable and could not have otherwise been

avoided.

4. The permittee shall furnish to the Department, within a reasonable time set by the Department (not to be less than 15 days), any informat ion that the Department may request in writing to determine whether cause exists for modifying, revoking and reissuing, or terminating the permit, or to determine compliance with the permit. Upon request, the permittee shall also furnish to the Department copies of those records that are required to be kept pursuant to the terms of the permit. This subsection does not impair or otherwise limit the right of the permittee to assert the confidentiality of the information requested by the Department, as provi ded in 75

- 2

- 105, MCA.

5. Any schedule of compliance for applicable requirements with which the source is not in compliance with at the time of permit issuance shall be supplemental to, and shall not sanction noncompliance with, the applicable requirements on which it was based.

6. For applicable requirements that will become effective during the permit term, the source shall meet such requirements on a timely basis unless a more detailed plan or schedule is required by the applicable requirement or the Departme nt.

B. Certification Requirements ARM 17.8, Subchapter 12, Operating Permit Program §1207 and §1213(7)(a)&(c)

- (d)

1. Any application form, report, or compliance certification submitted pursuant to ARM Title 17, Chapter 8, Subchapter 12, shall contain certifica tion by a responsible official of truth, accuracy and completeness. This certification and any other certification required under ARM Title 17, Chapter 8, Subchapter 12, shall state that, based on information and belief formed after reasonable inquiry, th e statements and information in the document are true, accurate and complete.OP0513

- 07 43 Draft : 05/17/2011

2. Compliance certifications shall be submitted by February 15 of each year, or more frequently if otherwise specified in an applicable requirement or elsewhere in the permit. Eac h certification must include the required information for the previous calendar year (i.e., January 1

– December 31).

3. Compliance certifications shall include the following:

a. The identification of each term or condition of the permit that is the basis of th e certification;

b. The identification of the method(s) or other means used by the owner or operator for determining the status of compliance with each term or condition during the certification period, and whether such methods or other means provide continu ous or intermittent data, as well as the additional information required by ARM 17.8.1213(7)(c)(ii);

c. 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 (based on the method or means designated in ARM 17.8.1213(7)(c)(ii), as described above); and

d. Such other facts as the Department may require to determine the compliance status of the

source.

4. All compliance certificat ions must be submitted to the EPA, as well as to the Department, at the addresses listed in the Notification Addresses Appendix of this permit.

C. Permit Shield ARM 17.8, Subchapter 12, Operating Permit Program §1214(1)

- (4)

1. The applicable requirements and n on

- federally enforceable requirements are included and specifically identified in this permit and the permit includes a precise summary of the requirements not applicable to the source. Compliance with the conditions of the permit shall be deemed complian ce with any applicable requirements and any non

- federally enforceable requirements as of the date of permit issuance.

2. The permit shield described in 1 above shall remain in effect during the appeal of any permit action (renewal, revision, reopening, or re vocation and reissuance) to the Board of Environmental Review (Board), until such time as the Board renders its final decision.

3. Nothing in this permit alters or affects the following:

a. The provisions of Sec. 7603 of the FCAA, including the authority of th e administrator under that section;

b. The liability of an owner or operator of a source for any violation of applicable requirements prior to or at the time of permit issuance;

c. The applicable requirements of the Acid Rain Program, consistent with Sec. 7651 g(a) of the FCAA;

d. The ability of the administrator to obtain information from a source pursuant to Sec. 7414 of the FCAA;OP0513

- 07 44 Draft : 05/17/2011 e. The ability of the Department to obtain information from a source pursuant to the Montana Clean Air Act, Title 75, Chapter 2, MCA;

f. The emergency powers of the Department under the Montana Clean Air Act, Title 75, Chapter 2, MCA; and

g. The ability of the Department to establish or revise requirements for the use of Reasonably Available Control Technology (RACT) as defined in ARM Title 1 7, Chapter 8. However, if the inclusion of a RACT into the permit pursuant to ARM Title 17, Chapter 8, Subchapter 12, is appealed to the Board, the permit shield, as it applies to the source’s existing permit, shall remain in effect until such time as the Board has rendered its final

decision.

4. Nothing in this permit alters or affects the ability of the Department to take enforcement action for a violation of an applicable requirement or permit term demonstrated pursuant to ARM 17.8.106, Source Testing Pro tocol.

5. Pursuant to ARM 17.8.132, for the purpose of submitting a compliance certification, nothing in these rules shall preclude the use, including the exclusive use, of any credible evidence or

information relevant to whether a source would have been in compliance. However, when compliance or noncompliance is demonstrated by a test or procedure provided by permit or other applicable requirements, the source shall then be presumed to be in compliance or noncompliance, unless that presumption is overcome b y other relevant credible evidence.

6. The permit shield will not extend to minor permit modifications or changes not requiring a permit revision (see Sections I & J).

7. The permit shield will extend to significant permit modifications and transfer or assignm ent of ownership (see Sections K & N).

D. Monitoring, Recordkeeping, and Reporting Requirements ARM 17.8, Subchapter 12, Operating Permit Program §1212(2)&(3)

1. Unless otherwise provided in this permit, the permittee shall maintain compliance monitoring

recor ds that include the following information:

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

b. The date(s) analyses were performed;

c. The company or entity that performed the analyses;

d. The analytical techniques or methods used;

e. The results of such analyses; and

f. The operating conditions at the time of sampling or measurement.

2. 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 monitori ng sample, measurement, report, or application. Support information includes all calibration and maintenance records and all original strip

- chart recordings for continuous monitoring instrumentation, and copies of all reports required by the permit. All monitoring data, support information, and required reportsOP0513

- 07 45 Draft : 05/17/2011 and summaries may be maintained in computerized form at the plant site if the information is made available to Department personnel upon request, which may be for either hard copies or computerized format. Strip

- charts must be maintained in their original form at the plant site and shall be made available to Department personnel upon request.

3. The permittee shall submit to the Department, at the addresses located in the Notification Addresses App endix of this permit, reports of any required monitoring by February 15 and August 15 of each year, or more frequently if otherwise specified in an applicable requirement or elsewhere in the permit. The monitoring report submitted on February 15 of each y ear must include the required monitoring information for the period of July 1 through December 31 of the previous year. The monitoring report submitted on August 15 of each year must include the required monitoring information for the period of January 1 through June 30 of the current year. All instances of deviations from the permit requirements must be clearly identified in such reports. All required reports must be certified by a responsible official, consistent with ARM

17.8.1207.

E. Prompt Deviation R eporting ARM 17.8, Subchapter 12, Operating Permit Program §1212(3)(c)

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 deviation s, and any corrective actions or preventive measures taken. To be considered prompt, deviations shall be reported to the Department within the following timeframes (unless otherwise specified in an applicable requirement):

1. For deviations which may result in emissions potentially in violation of permit limitations:

a. An initial phone notification (or faxed or electronic notification) describing the incident within 24 hours (or the next business day) of discovery; and,

b. A follow

- up written, faxed, or electro nic report within 30 days of discovery of the deviation that describes the probable cause of the reported deviation and any corrective actions or preventative measures taken

.

2. For deviations attributable to malfunctions, deviations shall be reported to the Department in accordance with the malfunction reporting requirements under ARM 17.8.110 ; and

3. For all other deviations, deviations shall be reported to the Department via a written, faxed, or electronic report within 90 days of discovery (as determined th rough routine internal review by the permittee).

Prompt deviation reports do not need to be resubmitted with regular semiannual (or other routine) reports, but may be referenced by the date of submittal.

F. Emergency Provisions ARM 17.8, Subchapter 12, Oper ating Permit Program §1201(13) and §1214(5), (6)&(8)

1. An “emergency” means any situation arising from sudden and reasonably unforeseeable events beyond the control of the source, including acts of God, which situation requires immediate

corrective action t o restore normal operation and causes the source to exceed a technology

based emission limitation under this permit due to the unavoidable increases in emissions attributable to the emergency. An emergency shall not include noncompliance to the extent

cau sed by improperly designed equipment, lack of reasonable preventive maintenance, careless or improper operation, or operator error.OP0513

- 07 46 Draft : 05/17/2011

2. An emergency constitutes an affirmative defense to an action brought for noncompliance with a technology

- based emission lim itation if the permittee demonstrates through properly signed, contemporaneous logs, or other relevant evidence, that:

a. An emergency occurred and the permittee can identify the cause(s) of the emergency;

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

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

d. The permittee submitted notice of the emergency to the D epartment within 2 working days of the time when emission limitations were exceeded due to the emergency. This notice fulfills the requirements of ARM 17.8.1212(3)(c). This notice must contain a description of the emergency, any steps taken to mitigate e missions, and corrective actions taken.

3. These emergency provisions are in addition to any emergency, malfunction or upset provision contained in any applicable requirement.

G. Inspection and Entry ARM 17.8, Subchapter 12, Operating Permit Program §1213(3)&( 4)

1. Upon presentation of credentials and other requirements as may be required by law, the permittee shall allow the Department, the administrator, or an authorized representative (including an authorized contractor acting as a representative of the Depart ment or the administrator) to perform the following:

a. Enter the premises where a source required to obtain a permit is located or emissions

related activity is conducted, or where records must be kept under the conditions of the permit;

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

c. Inspect at reasonable times any facilities, emission units, equipment (including monitoring and air pollution control equipment), practices, or operations regula ted or required under the permit; and

d. As authorized by the Montana Clean Air Act and rules promulgated thereunder, sample or monitor, at reasonable times, any substances or parameters at any location for the purpose of assuring compliance with the permit or applicable requirements.

2. The permittee shall inform the inspector of all workplace safety rules or requirements at the time of inspection. This section shall not limit in any manner the Department’s statutory right of entry and inspection as provided for in 75

- 2

- 403, MCA.

H. Fee Payment ARM 17.8, Subchapter 12, Operating Permit Program §1210(2)(f) and ARM 17.8, Subchapter 5, Air Quality Permit Application, Operation, and Open Burning Fees §505(3)

- (5) (STATE ONLY)

1. The permittee must pay application and o perating fees, pursuant to ARM Title 17, Chapter 8, Subchapter 5.OP0513

- 07 47 Draft : 05/17/2011

2. Annually, the Department shall provide the permittee with written notice of the amount of the fee and the basis for the fee assessment. The air quality operation fee is due 30 days after

r eceipt of the notice, unless the fee assessment is appealed pursuant to ARM 17.8.511. If any portion of the fee is not appealed, that portion of the fee that is not appealed is due 30 days after receipt of the notice. Any remaining fee, which may be due after the completion of an appeal, is due immediately upon issuance of the Board’s decision or upon completion of any judicial

review of the Board’s decision.

3. If the permittee fails to pay the required fee (or any required portion of an appealed fee) with in 90 days of the due date of the fee, the Department may impose an additional assessment of 15% of the fee (or any required portion of an appealed fee) or $100, whichever is greater, plus interest on the fee (or any required portion of an appealed fee), c omputed at the interest rate

established under 15

- 31

- 510(3), MCA.

I. Minor Permit Modifications ARM 17.8, Subchapter 12, Operating Permit Program §1226(3)&(11)

1. An application for a minor permit modification need only address in detail those portions of the permit application that require revision, updating, supplementation, or deletion, and may reference any required information that has been previously submitted.

2. The permit shield under ARM 17.8.1214 will not extend to any minor modifications processed

purs uant to ARM 17.8.1226.

J. Changes Not Requiring Permit Revision ARM 17.8, Subchapter 12, Operating Permit Program §1224(1)

- (3), (5)&(6)

1. The permittee is authorized to make changes within the facility as described below, provided the following conditions are met:

a. The proposed changes do not require the permittee to obtain a Montana Air Quality Permit under ARM Title 17, Chapter 8, Subchapter 7;

b. The proposed changes are not modifications under Title I of the FCAA, or as defined in ARM Title 17, Chapter 8, S ubchapters 8, 9, or 10;

c. The emissions resulting from the proposed changes do not exceed the emissions allowable under this permit, whether expressed as a rate of emissions or in total emissions;

d. The proposed changes do not alter permit terms that are nec essary to enforce applicable emission limitations on emission units covered by the permit; and

e. The facility provides the administrator and the Department with written notification at least 7 days prior to making the proposed changes.

2. The permittee and th e Department shall attach each notice provided pursuant to 1.e above to their respective copies of this permit.

3. Pursuant to the conditions above, the permittee is authorized to make Sec. 502(b)(10) changes, as defined in ARM 17.8.1201(30), without a permi t revision. For each such change, the written notification required under 1.e above shall include a description of the change within the source, the date on which the change will occur, any change in emissions, and any permit term

or condition that is no longer applicable as a result of the change.OP0513

- 07 48 Draft : 05/17/2011

4. The permittee may make a change not specifically addressed or prohibited by the permit terms and conditions without requiring a permit revision, provided the following conditions are met:

a. Each proposed change does not weaken the enforceability of any existing permit conditions;

b. The Department has not objected to such change;

c. Each proposed change meets all applicable requirements and does not violate any existing permit term or condition; and

d. The permittee pr ovides contemporaneous written notice to the Department and the administrator of each change that is above the level for insignificant emission units as defined in ARM 17.8.1201(22) and 17.8.1206(3), and the written notice describes each such change, inclu ding the date of the change, any change in emissions, pollutants emitted, and any applicable requirement that would apply as a result of the change.

5. The permit shield authorized by ARM 17.8.1214 shall not apply to changes made pursuant to ARM 17.8.1224(3) and (5), but is applicable to terms and conditions that allow for increases and decreases in emissions pursuant to ARM 17.8.1224(4).

K. Significant Permit Modifications ARM 17.8, Subchapter 12, Operating Permit Program §1227(1), (3)&(4)

1. The modification pr ocedures set forth in 2 below must be used for any application requesting a significant modification of this permit. Significant modifications include the following:

a. Any permit modification that does not qualify as either a minor modification or as an

ad ministrative permit amendment;

b. Every significant change in existing permit monitoring terms or conditions;

c. Every relaxation of permit reporting or recordkeeping terms or conditions that limit the Department’s ability to determine compliance with any appl icable rule, consistent with the requirements of the rule; or

d. Any other change determined by the Department to be significant.

2. Significant modifications shall meet all requirements of ARM Title 17, Chapter 8, including those for applications, public part icipation, and review by affected states and the administrator, as they apply to permit issuance and renewal, except that an application for a significant permit modification need only address in detail those portions of the permit application that require revision, updating, supplementation or deletion.

3. The permit shield provided for in ARM 17.8.1214 shall extend to significant modifications.

L. Reopening for Cause ARM 17.8, Subchapter 12, Operating Permit Program §1228(1)&(2)

This permit may be reopened a nd revised under the following circumstances:

1. Additional applicable requirements under the FCAA become applicable to the facility when the permit has a remaining term of 3 or more years. Reopening and revision of the permit shall be completed not later t han 18 months after promulgation of the applicable requirement. No reopening is required under ARM 17.8.1228(1)(a) if the effective date of the applicableOP0513

- 07 49 Draft : 05/17/2011 requirement is later than the date on which the permit is due to expire, unless the original permit or any of its terms or conditions have been extended pursuant to ARM 17.8.1220(12) or 17.8.1221(2);

2. Additional requirements (including excess emission requirements) become applicable to an affected source under the Acid Rain Program. Upon approval by the administrator, excess emission offset plans shall be deemed incorporated into the permit;

3. The Department or the administrator determines that the permit contains a material mistake or that inaccurate statements were made in establishing the emission stan dards or other terms or conditions of the permit; and

4. The administrator or the Department determines that the permit must be revised or revoked and reissued to ensure compliance with the applicable requirements.

M. Permit Expiration and Renewal
ARM 17.8, Su bchapter 12, Operating Permit Program §1210(2)(g), §1220(11)&(12), and §1205(2)(d)

1. This permit is issued for a fixed term of 5 years.

2. Renewal of this permit is subject to the same procedural requirements that apply to permit issuance, including those for application, content, public participation, and affected state and

administrator review.

3. Expiration of this permit terminates the permittee’s right to operate unless a timely and administratively complete renewal application has been submitted consistent with ARM 17.8.1221 and 17.8.1205(2)(d). If a timely and administratively complete application has been submitted, all terms and conditions of the permit, including the application shield, remain in effect after the permit expires until the permit renewal has been issued or denied.

4. For renewal, the permittee shall submit a complete air quality operating permit application to the Department not later than 6 months prior to the expiration of this permit, unless otherwise specified. If necessary to ensure t hat the terms of the existing permit will not lapse before renewal, the Department may specify, in writing to the permittee, a longer time period for submission of the renewal application. Such written notification must be provided at least 1 year before the renewal application due date established in the existing permit.

N. Severability Clause ARM 17.8, Subchapter 12, Operating Permit Program §1210(2)(i)&(l)

1. The administrative appeal or subsequent judicial review of the issuance by the Department of

an ini tial permit under this subchapter shall not impair in any manner the underlying applicability of all applicable requirements, and such requirements continue to apply as if a final permit decision had not been reached by the Department.

2. If any provision of a permit is found to be invalid, all valid parts that are severable from the invalid part remain in effect. If a provision of a permit is invalid in one or more of its applications, the provision remains in effect in all valid applications that are sever able from the invalid applications.OP0513

- 07 50 Draft : 05/17/2011

O. Transfer or Assignment of Ownership ARM 17.8, Subchapter 12, Operating Permit Program §1225(2)&(4)

1. If an administrative permit amendment involves a change in ownership or operational control, the applicant must include in its request to the Department a written agreement containing a specific date for the transfer of permit responsibility, coverage and liability between the current and new permittee.

2. The permit shield provided for in ARM17.8.1214 shall not extend to ad ministrative permit

amendments.

P. Emissions Trading, Marketable Permits, Economic Incentives ARM 17.8, Subchapter 12, Operating Permit Program §1226(2)

Notwithstanding ARM 17.8.1226(1) and (7), minor air quality operating permit modification procedures may be used for permit modifications involving the use of economic incentives, marketable permits, emissions trading, and other similar approaches, to the extent that such minor permit modification procedures are explicitly provided for in the Montana State I mplementation Plan (SIP) or in applicable requirements promulgated by the administrator.

Q. No Property Rights Conveyed ARM 17.8, Subchapter 12, Operating Permit Program §1210(2)(d)

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

R. Testing Requirements ARM 17.8, Subchapter 1, General Provisions §105

The permittee shall comply with ARM 17.8.105.

S. Source Testing Protocol ARM 17.8, Subchapter 1, General Provisions §106

The permittee shall comply with ARM 17.8.106.

T. Malfu nctions ARM 17.8, Subchapter 1, General Provisions §110

The permittee shall comply with ARM 17.8.110.

U. Circumvention ARM 17.8, Subchapter 1, General Provisions §111

The permittee shall comply with ARM 17.8.111.

V. Motor Vehicles ARM 17.8, Subchapter 3, Emi ssion Standards §325

The permittee shall comply with ARM 17.8.325.OP0513

- 07 51 Draft : 05/17/2011

W. Annual Emissions Inventory ARM 17.8, Subchapter 5, Air Quality Permit Application, Operation and Open Burning Fees §505 (STATE ONLY)

The permittee shall supply the Department with annual production and other information for all emission units necessary to calculate actual or estimated actual amount of air pollutants emitted during each calendar year. Information shall be gathered on a calendar

- year basis and submitted to the Department b y the date required in the emission inventory request, unless otherwise specified in this permit. Information shall be in the units required by the Department.

X. Open Burning ARM 17.8, Subchapter 6, Open Burning §604, 605 and 606

The permittee shall compl y with ARM 17.8.604, 605 and 606.

Y. Montana Air Quality Permits ARM 17.8, Subchapter 7, Permit, Construction and Operation of Air Contaminant Sources §745, and

764 (ARM 17.8.745(1) and 764(1)(b) are STATE ENFORCEABLE ONLY until approval by the EPA as part o f the SIP)

1. Except as specified, no person shall construct, install, modify or use any air contaminant source or stack associated with any source without first obtaining a permit from the Department or Board. A permit is not required for those sources or stacks as specified by ARM 17.8.745(1)(a)

- (k).

2. The permittee shall comply with ARM 17.8.743, 744, 745, 748, and 764.

3. ARM 17.8.745(1) specifies de minimis changes as construction or changed conditions of operation at a facility holding a Montana Air Qua lity Permit ( MAQP ) issued under Chapter 8 that does not increase the facility’s potential to emit by more than 15 tons per year (TPY) of any pollutant, except (STATE ENFORCEABLE ONLY until approved by the EPA as part of the SIP):

a. Any construction or chang ed condition that would violate any condition in the facility’s existing MAQP or any applicable rule contained in Chapter 8 is prohibited, except as provided in ARM 17.8.745(2);

b. Any construction or changed conditions of operation that would qualify as a m ajor modification under Subchapters 8, 9 or 10 of Chapter 8;

c. Any construction or changed condition of operation that would affect the plume rise or dispersion characteristic of emissions that would cause or contribute to a violation of an ambient air qual ity standard or ambient air increment as defined in ARM 17.8.804;

d. Any construction or improvement project with a Potential to Emit (PTE) more than 15 TPY may not be artificially split into smaller projects to avoid Montana Air Quality Permitting ; and

e. Emi ssion reductions obtained through offsetting within a facility are not included when determining the potential emission increase from construction or changed conditions of operation, unless such reductions are made federally enforceable.OP0513

- 07 52 Draft : 05/17/2011

4. Any facility maki ng a de minimis change pursuant to ARM 17.8.745(1) shall notify the Department if the change would include a change in control equipment, stack height, stack diameter, stack gas temperature, source location or fuel specifications, or would result in an

inc rease in source capacity above its permitted operation or the addition of a new emission unit. The notice must be submitted, in writing, 10 days prior to start up or use of the proposed de minimis change, or as soon as reasonably practicable in the event of an unanticipated circumstance causing the de minimis change, and must include the information requested in ARM 17.8.745(1) (STATE ENFORCEABLE ONLY until approval by the EPA as part of the SIP).

Z. National Emission Standard for Asbestos 40 CFR, Part 61, Subpart M

The permittee shall not conduct any asbestos abatement activities except in accordance with 40 CFR 61, Subpart M (National Emission Standard for Hazardous Air Pollutants for Asbestos).

AA. Asbestos ARM 17.74, Subchapter 3, General Provisions and Su bchapter 4, Fees

The permittee shall comply with ARM 17.74.301, et seq ., and ARM 17.74.401, et seq. (State only)

BB. Stratospheric Ozone Protection

– Servicing of Motor Vehicle Air Conditioners 40 CFR, Part 82, Subpart B

If the permittee performs a service on motor vehicles and this service involves ozone

- depleting substance/refrigerant in the motor vehicle air conditioner (MVAC), the permittee is subject to all the applicable requirements as specified in 40 CFR 82, Subpart B.

CC. Stratospheric Ozone Protect ion

– Recycling and Emission Reductions 40 CFR, Part 82, Subpart F

The permittee shall comply with the standards for recycling and emission reductions in 40 CFR 82, Subpart F, except as provided for MVACs in Subpart B.

1. Persons opening appliances for main tenance, service, repair, or disposal must comply with the required practices pursuant to §82.156.

2. Equipment used during the maintenance, service, repair or disposal of appliances must comply with the standards for recycling and recovery equipment pursuan t to §82.158.

3. Persons performing maintenance, service, repair, or disposal of appliances must be certified by an approved technical certification program pursuant to §82.161.

4. Persons disposing of small appliances, MVACs and MVAC

- like (as defined at §82.1 52) appliances must comply with recordkeeping requirements pursuant to §82.166.

5. Persons owning commercial or industrial process refrigeration equipment must comply with the leak repair requirements pursuant to §82.156.

6. Owners/operators of appliances norm ally containing 50 or more pounds of refrigerant must keep records of refrigerant purchased and added to such appliances pursuant to §82.166.OP0513

- 07 53 Draft : 05/17/2011

DD. Emergency Episode Plan

The permittee shall comply with the requirements contained in Chapter 9.7 of the State of Montana Air Quality Control Implementation Plan.

Each major source emitting 100 TPY located in a Priority I Air Quality Control Region, shall submit to the Department a legally enforceable Emergency Episode Action Plan (EEAP) that details how the

source will curtail emissions during an air pollutant emergency episode. The industrial EEAP shall be in accordance with the Department’s EEAP and shall be submitted according to a timetable developed by the Department, following Priority I reclassification.

EE. D efinitions

Terms not otherwise defined in this permit or in the Definitions and Abbreviations Appendix of this permit, shall have the meaning assigned to them in the referenced regulations.OP0513

- 07 54 Draft : 05/17/2011 

# APPENDICESOP0513

- 07 A

- 1 Draft : 0 5 / 17 / 2011 Appendix A INSIGNIFICANT EMISSION UNITS

Disclaimer: The info rmation in this appendix is not State or Federally enforceable, but is presented to

assist PPL , the permitting authority, inspectors, and the public.

Pursuant to ARM 17.8.1201(22)(a), an insignificant emission unit means any activity or emissions unit

loc ated within a source that: (i) has a PTE less than 5 TPY of any regulated pollutant; (ii) has a PTE less than 500 pounds per year of lead; (iii) has a PTE less than 500 pounds per year of Hazardous Air Pollutants (HAP) listed pursuant to Sec. 7412 (b) of t he FCAA; and (iv) is not regulated by an applicable requirement, other than a generally applicable requirement that applies to all emission units subject to Subchapter 12.

List of Insignificant Activities:

The following table of insignificant sources and /or activities were provided by PPL . Because there are no requirements to update such a list, the emission units and/or activities may change from those specified in

the table.

Emissions Unit ID Description

IEU01 Hydrazine Bulk Storage Tank Vent

IEU02 LPG Vaporizer

IEU03 Unit #1 Cooling Tower

IEU04 Unit #2 Cooling tower

IEU05 Unit #3 Cooling Tower

IEU06 Unit #4 Cooling Tower

IEU07 Waste Site

IEU08 Boiler Chemical Cleaning Process

IEU09 LPG System Safety Valves and Vents

IEU10 Process Tank Vents

IEU11 Process Ponds

IEU12 Boiler Chemical Cleaning Process

IEU13 Diesel Tanks

IEU14 Scrubber Relining P 5 rocessOP0513

- 07 B

- 1 Draft : 0 5/17 / 2011 Appendix B DEFINITIONS and ABBREVIATIONS

"Act" means the Clean Air Act, as amended, 42 U.S. 7401, et seq.

"Administrative permit amendment" means a n air quality operating permit revision that:

(a) Corrects typographical errors;

(b) Identifies a change in the name, address or phone number of any person identified in the air quality operating permit, or identifies a similar minor administrative change at the source;

(c) Requires more frequent monitoring or reporting by PPL ;

(d) Requires changes in monitoring or reporting requirements that the Department deems to be no less stringent than current monitoring or reporting requirements;

(e) Allows for a change in ownershi p or operational control of a source if the Department has determined that no other change in the air quality operating permit is necessary, consistent with ARM 17.8.1225; or

(f) Incorporates any other type of change that the Department has determined to be s imilar to those revisions set forth in (a)

- (e), above.

"Applicable requirement" means all of the following as they apply to emission units in a source requiring an air quality operating permit (including requirements that have been promulgated or approved by the Department or the administrator through rule making at the time of issuance of the air quality operating permit, but have future

- effective compliance dates, provided that such requirements apply to sources covered under the operating permit):

(a) Any standard, rule, or other requirement, including any requirement contained in a consent decree or judicial or administrative order entered into or issued by the Department, that is contained in the Montana state implementation plan approved or promulgated b y the administrator through rule making under Title I of the FCAA;

(b) Any federally enforceable term, condition or other requirement of any Montana Air Quality

Permit issued by the Department under Subchapters 7, 8, 9 and 10 of this chapter, or pursuant

to r egulations approved or promulgated through rule making under Title I of the FCAA, including P arts C and D;

(c) Any standard or other requirement under Sec. 7411 of the FCAA, including Sec. 7411(d);

(d) Any standard or other requirement under Sec. 7412 of the FCA A, including any requirement concerning accident prevention under Sec. 7412(r)(7), but excluding the contents of any risk management plan required under Sec. 7412(r);

(e) Any standard or other requirement of the acid rain program under Title IV of the FCAA or regulations promulgated thereunder;

(f) Any requirements established pursuant to Sec. 7661c(b) or Sec. 7414(a)(3) of the FCAA;

(g) Any standard or other requirement governing solid waste incineration, under Sec. 7429 of the
FCAA;OP0513

- 07 B

- 2 Draft : 0 5/17 / 2011

(h) Any standard or other requireme nt for consumer and commercial products, under Sec. 7511b(e) of the FCAA;

(i) Any standard or other requirement for tank vessels, under Sec. 7511b(f) of the FCAA;

(j) Any standard or other requirement of the regulations promulgated to protect stratospheric

ozone under Title VI of the FCAA, unless the administrator determines that such requirements need not be contained in an air quality operating permit;

(k) Any national ambient air quality standard or increment or visibility requirement under P art C

of Title I of t he FCAA, but only as it would apply to temporary sources permitted pursuant to Sec. 7661c(e) of the FCAA; or

(l) Any federally enforceable term or condition of any air quality open burning permit issued by the Department under Subchapter 6.

"Department" mean s the Montana Department of Environmental Quality.

“Excess Emissions” means any visible emissions from a stack or source, viewed during the visual surveys, that meets or exceeds 15% opacity (or 30% opacity if associated with a 40% opacity limit) during no rmal operating conditions.

"Emissions unit" means any part or activity of a stationary source that emits or has the potential to emit any regulated air pollutant or any pollutant listed under Sec. 7412(b) of the FCAA. This term is not

meant to alter or a ffect the definition of the term "unit" for purposes of Title IV of the FCAA.

"FCAA" means the Federal Clean Air Act, as amended.

"Federally enforceable" means all limitations and conditions which are enforceable by the administrator, including those req uirements developed pursuant to 40 CFR Parts 60 and 61, requirements within the Montana State Implementation Plan, and any permit requirement established pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR Part 51, Subpart I, includin g operating permits issued under an EPA approved program that is incorporated into the Montana State Implementation Plan and expressly requires adherence to any permit issued under such program.

"Fugitive emissions" means those emissions that could not re asonably pass through a stack, chimney, vent, or other functionally equivalent opening.

"General air quality operating permit" or "general permit" means an air quality operating permit that meets the requirements of ARM 17.8.1222, covers multiple sources in a source category, and is issued in lieu of individual permits being issued to each source.

"Hazardous air pollutant" means any air pollutant listed as a hazardous air pollutant pursuant to Sec. 112(b) of the FCAA.

"Non

- federally enforceable requirem ent" means the following as they apply to emission units in a source requiring an air quality operating permit:

(a) Any standard, rule, or other requirement, including any requirement contained in a consent decree, or judicial or administrative order entered into or issued by the Department, that is not contained in the Montana State Implementation Plan approved or promulgated by the administrator through rule making under Title I of the FCAA;OP0513

- 07 B

- 3 Draft : 0 5/17 / 2011

(b) Any term, condition or other requirement contained in any Montana Air Quality Permit issued by the Department under Subchapters 7, 8, 9 and 10 of this chapter that is not federally enforceable;

(c) Does not include any Montana ambient air quality standard contained in Subchapter 2 of this chapter.

“Operating Day ” means any calendar day (midnight to midnight) in which any fuel is combusted in the

unit.

"Permittee" means the owner or operator of any source subject to the permitting requirements of this subchapter, as provided in ARM 17.8.1204, that holds a valid air quality operating permit or has submitted a timely and complete permit application for issuance, renewal, amendment, or modification pursuant to this subchapter.

"Regulated air pollutant" means the following:

(a) Nitrogen oxides or any volatile organic compounds;

(b) A ny pollutant for which a national ambient air quality standard has been promulgated;

(c) Any pollutant that is subject to any standard promulgated under Sec. 7411 of the FCAA;

(d) Any Class I or II substance subject to a standard promulgated under or established by Title VI of the FCAA; or

(e) Any pollutant subject to a standard or other requirement established or promulgated under Sec. 7412 of the FCAA, including but not limited to the following:

(i) Any pollutant subject to requirements under Sec. 7412(j) of the FCAA . If the administrator fails to promulgate a standard by the date established in Sec. 7412(e) of the FCAA, any pollutant for which a subject source would be major shall be considered to be regulated on the date 18 months after the applicable date establis hed in Sec. 7412(e) of the FCAA;

(ii) Any pollutant for which the requirements of Sec. 7412(g)(2) of the FCAA have been met but only with respect to the individual source subject to Sec. 7412(g)(2) requirement.

"Responsible official" means one of the followi ng:

(a) For a corporation: a president, secretary, treasurer, or vice

- president of the corporation in charge of a principal business function, or any other person who performs similar policy or

decision

- making functions for the corporation, or a duly authoriz ed representative of such person if the representative is responsible for the overall operation of one or more manufacturing, production, or operating facilities applying for or subject to a permit and

either:

(i) The facilities employ more than 250 persons o r have gross annual sales or expenditures exceeding $25 million (in second quarter 1980 dollars); or

(ii) The delegation of authority to such representative is approved in advance by the Department.OP0513

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- 4 Draft : 0 5/17 / 2011

(b) For a partnership or sole proprietorship: a general partner or the proprietor, respectively.

(c) For a municipality, state, federal, or other public agency: either a principal executive officer or ranking elected official. For the purposes of this part, a principal executive officer of a federal agency includes the chief executive officer having responsibility for the overall operations of a principal geographic unit of the agency (e.g., a regional administrator of the environmental protection agency).

(d) For affected sources: the designated representative in so far as actions, standards, requirements, or prohibitions under Title IV of the FCAA or the regulations promulgated thereunder are concerned, and the designated representative for any other purposes under this subchapter.OP0513

- 07 B

- 5 Draft : 0 5/17 / 2011

Abbreviations:

ARM Administrative Rul es of Montana

ASTM American Society of Testing Materials

BACT Best Available Control Technology

BDT bone dry tons

B tu British t hermal u nit

CFR Code of Federal Regulations

CO carbon monoxide DEQ Department of Environmental Quality

dscf dry standard cubic fo ot
dscfm dry standard cubic foot per minute

EEAP Emergency Episode Action Plan

EPA U.S. Environmental Protection Agency

EPA Method Test methods contained in 40 CFR 60, Appendix A

EU emissions unit

FCAA Federal Clean Air Act

gr grains

HAP hazardous air poll utant Hg mercury IEU insignificant emissions unit MAQP Montana Air Quality Permit

Mbdft thousand board feet

MEMS Mercury Emission Monitoring System

Method 5 40 CFR 60, Appendix A, Method 5

Method 9 40 CFR 60, Appendix A, Method 9

MMbdft million board feet

MM B tu million British thermal unit s NOx oxides of nitrogen

NO 2 nitrogen dioxide

O 2 oxygen Pb lead

PM particulate matter

PM10 particulate matter less than 10 microns in size psi pounds per square inch

scf standard cubic feet

SIC Source Industrial Classific ation

SO 2 sulfur dioxide

SOx oxides of sulfur

TPY tons per year

TBtu trillion British Thermal Units

U.S.C. United States Code

VE visible emissions

VOC volatile organic compoundOP0513

- 07 C

- 1 Draft : 0 5/17 / 2011 Appendix C NOTIFICATION ADDRESSES

Compliance Notifications:

Montana Department of Env ironmental Quality Permitting and Compliance Division Air Resources Management Bureau

P.O. Box 200901 Helena, MT 59620

- 0901

United States EPA Air Program Coordinator Region VIII, Montana Office

10 W. 15 th , Suite 3200 Helena, MT 59626

Permit Modifications :

Montana Department of Environmental Quality Permitting and Compliance Division Air Resources Management Bureau

P.O. Box 200901 Helena, MT 59620

- 0901

Office of Partnerships and Regulatory Assistance Air and Radiation Program US EPA Region VIII 8P

- AR

159 5 Wynkoop Street
Denver, CO 80202

- 1129OP0513

- 07 D

- 1 Draft : 0 5/17 / 2011 Appendix D AIR QUALITY INSPECTOR INFORMATION

Disclaimer: The information in this appendix is not State or Federally enforceable, but is presented to

assist PPL , permitting authority, inspectors, and the public.

1. Direction t o Plant: The facility is located in PPL , Montana and is accessed by traveling south on Highway 39 from I

- 90 and turning east into the City of PPL on Willow Avenue.

2. Safety Equipment Required: The following safety guidelines were submitted by PPL:

Genera l Safety Guidelines for PPL Units 1, 2, 3, & 4

The following are excerpts from the PPL Employee Safety Handbook. These rules apply to all visitors as well. In all instances, visitors will be escorted by a Company employee.

Safety Glasses and Hard Hat s: Approved eye protection and c ompany issued hard hats are required while on PPL Project Division property, except in the following areas;

 Control Rooms

 Rest Rooms

 Lunch Rooms

 Offices

 To and from the parking lots and buildings

 Other areas as posted

Pr oper Clothing: Clothing and shoes, which are suitable for the particular type of work and existing weather conditions, shall be worn. The following should be kept in mind:

 Thin cotton, rayon, or other synthetic materials are highly flammable and will

re adily ignite.

 Long

- sleeved shirts with sleeves rolled down and buttoned provide primary protection from many types of injuries, particularly from burns, electrical contact, irritants, splinters, and scratches.

 Cuffed trousers and short

- topped shoes catch and hold hot or corrosive materials, endangering the wearer.

 Special protective clothing and equipment is furnished when required.

 Loose clothing and gloves must not be worn when working around moving machinery. Long sleeves must be rolled down and but toned tight.

 For all functions involving the use of chemicals outside of the Chem Lab and EED lab, the use of goggles, face shields, chemical/resistant gloves, and chemical suits are required.

 It is mandatory that an acid suit shall be worn during all fu nctions involving acids

or caustics.

 Rubber gloves, Tyvek (white suits), or similar suits, rubber boots and vision protection shall be worn during all operations involving lime.OP0513

- 07 D

- 2 Draft : 0 5/17 / 2011

Protective Footwear: Shoes of good quality construction, with leather or eq uivalent material to provide protection from abrasion and punctures, are required.

Signs: Special instruction signs are for the safety of employees, visitors, and equipment. These

instructions shall be observed at all times:

 Caution Signs (Black and Y ellow)

– Indicate a possible hazard against which proper precaution should be taken. Caution signs warn against potential hazards or caution against an unsafe practice.

 Danger Signs (Red, Black, and White)

– Indicate immediate danger, and special

precau tions are necessary.

 Safety Instruction Signs (Green and White)

– Provide general instructions and for suggestive information.

 Radiation Warning Signs (Reddish Purple and Yellow)

– Warn of a radiation hazard only. Special precautions and equipment are n ecessary.

 Direction Signs (Black and White)

– Ensure the safe and efficient flow of vehicles and pedestrian traffic.

 Vision, Hearing and Respiratory Protection Signs, where posted, shall be

observed.

Horseplay

– Scuffling or practical jokes are danger ous and are strictly forbidden.

Smoking Policy

– Smoking or open flames shall not be permitted in areas where explosive atmospheres might be present, including but not limited to, oil storage rooms, hydrogen areas, coal handling systems, LPG handling and storage facility, and any other area posted as a “NO SMOKING” area. Absence of “NO SMOKING” signs shall not excuse smoking in dangerous places.

Seat Belts

– where seat belts are provided in vehicles and equipment, they shall be used at all

times while the vehicle or equipment is being operated.

Drugs and Alcohol

– the use of intoxicating beverages on Company premises is strictly forbidden. The use of any drug on Company property, except those prescribed by a competent medical authority, is strictly f orbidden by Company Policy.

3. Facility Plot Plan: The facility plot plans were submitted as part of the applications for Operating

Permit #OP0513

- 00 and Operating Permit #OP1187

- 00.OP0513

- 07 E

- 1 Draft : 0 5/17 / 2011 Appendix E Opacity CEMS

Nothing in this appendix is intended to alter the requir ements in the Acid Rain Appendix.

1. Pursuant to 40 CFR Part 75, PPL shall calibrate, maintain, and operate continuous monitoring

systems.

Except for system breakdowns, repairs, calibration checks, and zero and span adjustments required pursuant to 40 C FR §60.13(d), 40 CFR Part 75 and the accuracy audits required below, all continuous monitoring systems shall be in continuous operation.

PPL shall conduct annual accuracy audits using a calibration jig and NBS

- traceable neutral density

filters on the cont inuous monitoring system.

2. PPL shall maintain records for a minimum of 5 years of the log sheets, computerized data, analysis, and calculations used to prepare the required reports.

3. Compliance with this appendix shall be deemed compliance with the requirements contained in the EPA PSD permit Appendix III issued September 11, 1979.

4. Compliance with this appendix shall be deemed compliance with the requirements contained in MAQP Section II.C.1.e., Section II.C.2., Section II.E.1., and Section II. E.2.

5. PPL shall submit reports to the Department containing the information required by 40 CFR §60.7 and as required below. The Department is requiring all opacity CEMS reports to be submitted quarterly.

a. PPL shall maintain records of the occurren ce and duration of any startup, shutdown, or malfunction in the operation of an affected facility; any malfunction of the air pollution control equipment; or any periods during which the continuous monitoring system is inoperative.

b. PPL shall submit an excess emissions and monitoring systems performance report and/or a summary report form (see paragraph (c) below) to the Department. Written reports of reportable excess emissions greater than 20% opacity shall include the following information:

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

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

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

iv. When no excess emissions have occurred or the continuous monitoring system(s)

have not been inoperative, repaired, or adjusted, such information shall be stated in the report.OP0513

- 07 E

- 2 Draft : 0 5/17 / 2011

c. The summary report form shall contain the information and be in the format shown in Figure 1. The summary report form shall be submitted:

i. If the total dur ation of excess emissions for the reporting period is less than 1% of the total operating time for the reporting period and CEMS downtime for the reporting period is less than 5% of the total operating time for the reporting period, only the

summary report form shall be submitted and the excess emission report described in Section (b) above need not be submitted unless requested.

ii. If the total duration of excess emissions for the reporting period is 1% or greater of the total operating time for the rep orting period or the total CEMS downtime for the reporting period is 5% or greater of the total operating time for the reporting period, the summary report form and the excess emission report described in Section (b)

above shall both be submitted.

Figure 1

-- Summary Report

-- Excess Emission and Monitoring

System Performance

Pollutant: Reporting period dates: From _____ to _______

Emission Limitation:

Monitor Manufacturer and Model No.:

Date of Latest CEMS Certification or Audit: Process Unit(s) Descripti on: Total source operating time in reporting period:

Emission Data Summary

1. Duration of excess emission in reporting period due to:

a. Startup/shutdown.

b. Control equipment problems.

c. Process problems.

d. Other known causes.

e. Unknown causes.

2. Total duration of excess emissions.

3. Total duration of excess emissions x (100) = % excess emissions Total Boiler Operating Time

CEMS Performance Summary

1. CEMS downtime in reporting period due to:

a. Monitor equipment malfunctions.

b. Non

- Monitor equipment malfunctions.

c. Quality assurance calibrations.

d. Other known causes.

e. Unknown causes.

2. Total CEMS Downtime when the boiler is operating (nearest quarter hour).

3. Total CEMS downtime when the boiler is operating x 100 = % downtime

To tal boiler operating time

4. Total boiler operating time (nearest quarter hour).

The quarterly reports must be postmarked by the 30th day after the end of each quarter

.OP0513

- 07 F

- 1 Draft : 0 5/17 / 2011 Appendix F SO2 CEMS

Nothing in this appendix is intended to alter the requirements in the A cid Rain Appendix.

1. Pursuant to 40 CFR Part 75, PPL shall calibrate, maintain, and operate continuous monitoring

systems.

The monitoring systems shall be capable of determining emissions in the units of the applicable

standards.

Except for system br eakdowns, repairs, calibration checks, and zero and span adjustments required pursuant to 40 CFR Part 75, all continuous monitoring systems shall be in continuous operation.

2. Compliance with 40 CFR Part 75 shall be deemed compliance with the requirement s contained in 40 CFR §60.13(a) through (c), (e) through (g), and (i) through (j) and with 40 CFR §60.45(c).

3. Compliance with 40 CFR Part 75 and this appendix shall be deemed compliance with the requirements contained in the EPA PSD permit Appendix III issued September 11, 1979.

4. Compliance with 40 CFR Part 75 and this appendix shall be deemed compliance with the requirements contained in MAQP Section II.C.1.e., Section II.C.2., Section II.E.1., and Section II.E.2.

5. PPL shall maintain records for a minimum of 5 years of the log sheets, computerized data, analysis, and calculations used to prepare the required reports.

6. PPL shall submit reports to the Department containing the information required by 40 CFR §60.7 and as required below. The Depar tment is requiring all SO 2 CEMS reports to be submitted quarterly.

a. PPL shall maintain records of the occurrence and duration of any startup, shutdown, or malfunction in the operation of an affected facility; any malfunction of the air pollution

contr ol equipment; or any periods during which the continuous monitoring system is inoperative.

b. PPL shall submit an excess emissions and monitoring systems performance report and/or a summary report form (see P aragraph (c) below) to the Department. Written reports of excess emissions shall be reported in the units of the standard exceeded and shall include the following information:

i. The magnitude of excess emissions, any conversion factor(s) used, and the date and time of commencement and completio n of each time period of excess emissions; and the process operating time during the reporting period.

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

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

iv. When no excess emissions have occurred or the continuous monitoring system(s) have not been inoperative, repaired, or adjusted, such information shall be stated in the report.OP0513

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- 2 Draft : 0 5/17 / 2011

c. The summary r eport form shall contain the information and be in the format shown in Figure 1. The summary report form shall be submitted:

i. If the total duration of excess emissions for the reporting period is less than 1% of the total operating time for the r eporting period and CEMS downtime for the reporting period is less than 5% of the total operating time for the reporting period, only the summary report form shall be submitted and the excess emission report described in

S ection (b) above need not be submi tted unless requested.

ii. If the total duration of excess emissions for the reporting period is 1% or greater of the total operating time for the reporting period or the total CEMS downtime for the reporting period is 5% or greater of the total operatin g time for the reporting period, the summary report form and the excess emission report describ ed in S ection (b)

above shall both be submitted.

Figure 1

-- Summary Report

-- Gaseous Excess Emission and Monitoring System Performance

Pollutant: Reporting perio d dates: From _____ to _______

Emission Limitation:

Monitor Manufacturer and Model No.:

Date of Latest CEMS Certification or Audit: Process Unit(s) Description: Total source operating time in reporting period:

Emission Data Summary

1. Duration of exce ss emission in reporting period due to:

a. Startup/shutdown.

b. Control equipment problems.

c. Process problems.

d. Other known causes.

e. Unknown causes.

2. Total duration of excess emissions.

3. Total duration of excess emissions x (100) = % excess e missions Total Boiler Operating Time

CEMS Performance Summary

1. CEMS downtime in reporting period due to:

a. Monitor equipment malfunctions.

b. Non

- Monitor equipment malfunctions.

c. Quality assurance calibrations.

d. Other known causes.

e. Unknown cause s.

2. Total CEMS Downtime when the boiler is operating (nearest quarter hour).

3. Total CEMS downtime when the boiler is operating x 100 = % downtime Total boiler operating time

4. Total boiler operating time (nearest quarter hour).

The quarterly reports must be postmarked by the 30th day after the end of each quarter

.OP0513

- 07 F

- 3 Draft : 0 5/17 / 2011

7. PPL shall submit quarterly reports to the Department containing the following information for each month of the quarter:

a. Tons of emissions calculated as the sum of E h =K x C h x Q h where E h = emission rate (lb/hr),

K = 1.66 x 10
- 7 (lb/scf)/ppm (SO 2 ), C h = Measured Pollutant Concentration (ppm wet ), and Q h = Measured Stack Gas Flow Rate (SCFH wet ); and

b. A summary report including the information identified in 40 CFR §75.64 (a)(2) in writing

that includes:

Tons (rounded to the nearest tenth) of SO 2 emitted during the quarter and cumulative SO 2 emissions for calendar year.

The quarterly reports must be postmarked by the 30th day after the end of the calendar quarter.

8. PPL sha ll submit copies of all RATAs performed to the Department in accordance with ARM 17.8.106, Source Testing Protocol.

9. PPL shall submit copies of each monitoring plan revision that results in the need to recertify the

CEMS.OP0513

- 07 G

- 1 Draft : 0 5/17 / 2011 Appendix G NOx CEMS

Nothing in this ap pendix is intended to alter the requirements in the Acid Rain Appendix.

1. Pursuant to 40 CFR Part 75, PPL shall calibrate, maintain, and operate continuous monitoring

systems.

The monitoring systems shall be capable of determining emissions in the unit s of the applicable

standards.

Except for system breakdowns, repairs, calibration checks, and zero and span adjustments required pursuant to 40 CFR Part 75, all continuous monitoring systems shall be in continuous operation.

2. Compliance with 40 CFR Par t 75 shall be deemed compliance with the requirements contained in 40 CFR §60.13(a) through (c), (e) through (g), and (i) through (j) and 40 CFR §60.45(c).

3. Compliance with 40 CFR Part 75 and this appendix shall be deemed compliance with the requirement s contained in the EPA PSD permit Appendix III issued September 11, 1979.

4. Compliance with 40 CFR Part 75 and this appendix shall be deemed compliance with the requirements contained in MAQP Section II.C.1.e., Section II.C.2., Section II.E.1., and Sect ion II.E.2.

5. PPL shall conduct a “Standard Practice for Ultimate Analysis of Coal and Coke”, ASTM D5291

- 92, at a minimum of once per year for each fuel used.

6. PPL shall determine the gross calorific value (GCV) of the fuels using ASTM D2015

- 91, “Stan dard Test Method for Gross Calorific Value of Coal and Coke by the Adiabatic Bomb Calorimeter” or other method as identified in 40 CFR Part 75, Appendix F, §3.3.6.2, at a minimum of once per year

for each fuel used.

7. PPL shall conduct a weekly fuel anal ysis using ASTM D4239

- 85 or other method approved by the Department.

8. PPL shall maintain records for a minimum of 5 years of the log sheets, computerized data, analysis, and calculations used to prepare the required reports.

9. PPL shall submit reports to the Department containing the information required by 40 CFR §60.7 and as required below. The Department is requiring all NO

x CEMS reports to be submitted quarterly.

a. PPL shall maintain records of the occurrence and duration of any startup, shutd own, or malfunction in the operation of an affected facility; any malfunction of the air pollution control equipment; or any periods during which the continuous monitoring system is inoperative.

b. PPL shall submit an excess emissions and monitoring syste ms performance report and/or a summary report form (see paragraph (c) below) to the Department. Written reports of excess emissions shall be reported in the units of the standard exceeded and shall include the following information:

i. The magnitud e of excess emissions, any conversion factor(s) used, and the date and time of commencement and completion of each time period of excess emissions; and the process operating time during the reporting period.OP0513

- 07 G

- 2 Draft : 0 5/17 / 2011 ii. Specific identification of each period of excess emissions that occurs during startups, shutdowns, and malfunctions of the affected facility; and the nature and cause of any malfunction (if known), the corrective action taken or preventative measures adopted.

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

iv. When no excess emissions have occurred or the continuous monitoring system(s)

have not been inoperative, repaired, or adjusted, such information shall be stated in the report.

c. The summary report form shall contain the information and be in the format shown in Figure 1. The summary report form shall be submitted

i. If the total du ration of excess emissions for the reporting period is less than 1% of the total operating time for the reporting period and CEMS downtime for the reporting period is less than 5% of the total operating time for the reporting period, only the

summary repor t form shall be submitted and the excess emission report described in

Sec tion (b) above need not be submitted unless requested.

ii. If the total duration of excess emissions for the reporting period is 1% or greater of the total operating time for the re porting period or the total CEMS downtime for the reporting period is 5% or greater of the total operating time for the reporting period, the summary report form and the excess emission report described in Sec tion (b)

above shall both be submitted.OP0513

- 07 G

- 3 Draft : 0 5/17 / 2011 Figu re 1

-- Summary Report

-- Gaseous Excess Emission and Monitoring System Performance

Pollutant: Reporting period dates: From _____ to _______

Emission Limitation:

Monitor Manufacturer and Model No.:

Date of Latest CEMS Certification or Audit: Process Unit(s) Description: Total source operating time in reporting period:

Emission Data Summary

1. Duration of excess emission in reporting period due to:

a. Startup/shutdown.

b. Control equipment problems.

c. Process problems.

d. Other known causes.

e. Unknown ca uses.

2. Total duration of excess emissions.

3. Total duration of excess emissions x (100) = % excess emissions Total Boiler Operating Time

CEMS Performance Summary

1. CEMS downtime in reporting period due to:

a. Monitor equipment malfunctions.

b. No n

- Monitor equipment malfunctions.

c. Quality assurance calibrations.

d. Other known causes.

e. Unknown causes.

2. Total CEMS Downtime when the boiler is operating (nearest quarter hour).

3. Total CEMS downtime when the boiler is operating x 100 = % d owntime Total boiler operating time

4. Total boiler operating time (nearest quarter hour).

The quarterly reports must be postmarked by the 30th day after the end of each quarter

.

10. PPL shall submit quarterly reports to the Department containing the f ollowing information for each month of the quarter:

a. Monthly average coal analysis;

b. Coal consumption;

c. Other fuels combusted and the amount;OP0513

- 07 G

- 4 Draft : 0 5/17 / 2011

d. Tons of emissions calculated as the sum of E h =K x C h x Q h where E h = emission rate (lb/hr),

K = 1 .19 x 10
- 7 (lb/scf)/ppm (NOx), C h = Measured Pollutant Concentration (ppm wet ), and Q h = Measured Stack Gas Flow Rate (SCFH wet ); and

e. A summary report including the information identified in 40 CFR §75.64 (a)(3) through (5) in writing which includes:

i. Average NOx emission rate (lb/mmBtu, rounded to the nearest hundredth) during the quarter and cumulative NOx emission rate for calendar year.

ii. Tons of CO 2 emitted during quarter and cumulative CO 2 for calendar year.

iii. Total heat input (mmBtu) fo r quarter and cumulative heat input for calendar year.

The quarterly reports must be postmarked by the 30th day after the end of the calendar quarter.

11. PPL shall submit copies of all RATAs performed to the Department in accordance with ARM
17.8.106, S ource Testing Protocol.

12. PPL shall submit copies of each monitoring plan revision that results in the need to a recertify the

CEMS.OP0513

- 07 H

- 1 Draft : 0 5/17 / 2011 Appendix H Acid RainOP0513

- 07 H

- 2 Draft : 0 5/17 / 2011OP0513

- 07 H

- 3 Draft : 0 5/17 / 2011OP0513

- 07 I

- 1 Draft : 0 5/17 / 2011 Appendix I Compliance Assurance Monitoring Plan

Monitoring Approach for PM for Units 1

- 4

A. Gen eral Criteria

1. Performance Indicator Stack Opacity 2. Measurement Approach COMS 3. Indicator Range A particulate matter excursion is defined as when a

3

- hour Rolling average opacity is > 20%

B. Performance Criteria

1. Dat a Representativeness Opacity is measured in the stack 2. Verification of Operational Status An operator on a continuous basis monitors stack opacity in the Control Room, Data is recorded and stored in a Data Acquisition System (DAS). 3. QA/QC Practices & Criteria As per the PPL CEMS QA Plan: Daily

– COMS Calibration Drift Quarterly

– Walkthrough Audit Assessment Quarterly

– Opacity Accuracy Audit As per 40 CFR 60

, Subpart D:

Annual

– Reference Method 5 Test 4. Monitoring Frequen cy Data Collection Procedures Averaging Period Opacity is measured on a continuous basis Opacity data is collected & stored in the DAS Minute (6 minute, hourly, and 3

- hour averages are calculated). 5. Exceedance/Excursion Rep orting

Particulate Excursion 6

- minute average opacity excesses > 20%, except

that one six

- minute period per hour of up to 27% opacity is allowed. Reporting is on a quarterly

basis.

3

- hour rolling average opacity of > 20% are reported on a quarterly basis.

Although the complete hard copy of Appendix I is not included in the permit, the contents of Appendix I,

PPL ’s CAM Plan remain as applicable requirements as stated in the Title V Operating Permit # OP0513

- 07 . To receive a hard copy of th is appendix, please contact one of the following:

The Department of Environmental Quality Permitting and Compliance Division Air Resources Management Bureau

1520 E. Sixth Ave.

P.O. Box 200901 Helena, MT 59620

- 0901 Bureau Phone #: (406) 444

- 3490

OR

PPL Montana, LLC

PPL Steam Electric Station

P.O. Box 38

PPL , MT 59323 Phone #: (406) 748

- 5066OP0513

- 07 J

- 1 Draft : 0 5/17 / 2011 Appendix J Mercury Emissions Monitoring System (MEMS)

MEMS

a. For each Unit 1

- 4, PPL shall install, calibrate, certify, maintain, and operate an MEMS to monitor

and recor d the rate of mercury emissions discharged into the atmosphere from all mercury emitting generating units (units) as defined in the Administrative Rules of Montana 17.8.740.

(1) The MEMS shall be comprised of equipment as required in 40 CFR 75.81(a) and d efined in

40 CFR 72.2.

(2) The MEMS shall conform to all applicable requirements of 40 CFR Part 75.

(3) The MEMS data will be used to demonstrate compliance with the emission limitations

contained in Section III. L.1

.

b. PPL shall prepare, maintain an d submit a written MEMS Monitoring Plan to the Department.

(1) The monitoring plan shall contain sufficient information on the MEMS and the use of data derived from these systems to demonstrate that all the gaseous mercury stack emissions from

each unit are monitored and reported.

(2) Whenever PPL makes a replacement, modification, or change in a MEMS or alternative monitoring system under 40 CFR 75 subpart E, including a change in the automated data acquisition and handling system (DAHS) or in the flue gas handling system, that affects information reported in the monitoring plan (e.g. a change to a serial number for a component of a monitoring system), then the owner or operator shall update the monitoring plan.

(3) If any monitoring plan information requires an update pursuant to Section b.(2), submission of the written monitoring plan update shall be completed prior to or concurrent with the submittal of the quarterly report required in c. below for the quarter in which the update is required.

(4) The initial submission of the Monitoring Plan to the Department shall include a copy of a written Quality Assurance/Quality Control (QA/QC) Plan as detailed in 40 CFR 75 Appendix B, Section 1. Subsequently, the QA/QC Plan need only be submitted to the Dep artment when it is substantially revised. Substantial revisions can include items such as changes in QA/QC processes resulting from rule changes, modifications in the frequency or timing of QA/QC procedures, or the addition/deletion of equipment or proced ures.

(5) The Monitoring Plan shall include, at a minimum, the following information:

(a) Facility summary including:

(i) A description of each mercury

- emitting generating unit at the facility.

(ii) Maximum and average loads (in megawatts (MW)) wit h fuels combusted and fuel flow rates at the maximum and average loads for each unit.

(iii) A description of each unit’s air pollution control equipment and a description of the physical characteristics of each unit’s stack.OP0513

- 07 J

- 2 Draft : 0 5/17 / 2011 (b) Mercury emission control summary including a description of control strategies, equipment, and design process rates.

(c) MEMS description, including:

(i) Identification and description of each monitoring component in the MEMS including manufacturer and model identifications; moni toring method descriptions; and normal operating scale and units descriptions. Descriptions of stack flow, diluent gas, and moisture monitors (if used) in the system must be described in addition to the mercury monitor or monitors.

(ii) A description of the normal operating process for each monitor including a description of all QA/QC checks.

(iii) A description of the methods that will be employed to verify and maintain the accuracy and precision of the MEMS calibration equipment.

(iv) Identification and description of the DAHS, including major hardware and software components, conversion formulas, constants, factors, averaging processes, and missing data substitution procedures.

(v) A description of all initial certification and ongoing recertificati on tests and frequencies; as well as all accuracy auditing tests and frequencies.

(d) The Maximum Potential Concentration (MPC), Maximum Expected Concentration (MEC), span value, and range value as applicable and as defined in 40 CFR 75 Appendix
A, 2.1.7

.

(e) Examples of all data reports required in c. below.

c. PPL shall submit written, Quarterly Mercury Monitoring Reports. The reports shall be received by the Department within 30 days following the end of each calendar quarter, and shall include, a t a minimum, the following:

(1) Mercury emissions. The reports shall include:

(a) For each Unit 1

- 4, the monthly average lb/TBtu mercury emission rate for each month of the quarter;

(b) For each Unit 1

- 4, the 12

- month rolling average lb/TBtu emission r ate for each month of the reporting quarter. The rolling 12

- month basis is an average of the last 12 individual calendar monthly averages, with each monthly average calculated at the end of each calendar month; and

(c) For each Unit 1

- 4, the total heat i nput to the boiler (in TBtu) for each 12

- month rolling period of the quarter.

(d) The 12

- month facility

- wide rolling average lb/TBtu mercury emission rate, calculated according to Section III.L.1 , for each month of the quarter.OP0513

- 07 J

- 3 Draft : 0 5/17 / 2011

(2) Mercury excess emissi ons. The report shall describe the magnitude of excess mercury emissions experienced during the quarter, including:

(a) The date and time of commencement and completion of each period of excess emissions.

Periods of excess emissions shall be defined as t hose emissions calculated on a rolling

12

- month basis which are greater tha n the limitation established in Section III.L.1.

(b) The nature and cause of each period of excess emissions and the corrective action taken or preventative measures adopted in res ponse.

(c) If no periods of excess mercury emissions were experienced during the quarter, the report

shall state that information.

(3) MEMS performance. The report shall describe:

(a) The number of operating hours that the MEMS was unavailable or not o perating within quality assurance limits (monitor downtime) during the reporting quarter, broken down by the following categories:

• Monitor equipment malfunctions;

• Non

- Monitor equipment malfunctions;

• Quality assurance calibration;

• Other known ca uses; and

• Unknown causes.

(b) The percentage of unit operating time that the MEMS was unavailable or not operating within quality assurance limits (monitor downtime) during the reporting quarter. The percentage of monitor downtime in each calendar qua rter shall be calculated according to the following formula:

where

MEMSDowntime% = Percentage of unit operating hours classified as MEMS monitor downtime during the reporting quarter.

MEMSDownHours = Total number of hours of MEMS monitor downtime during the reporting quarter.

OpHours = Total number of hours the unit operated during the reporting quarter.

(c) For any reporting quarter in which monitor downtime exceeds 10%, a descriptio n of each time period during which the MEMS was inoperative or operating in a manner defined in 40 CFR Part 75 as “out of control.” Each description must include the date, start and end times, total downtime (in hours), the reason for the system downtime, and any necessary corrective actions that were taken. In addition, the report shall describe the values used for any periods when missing data substitution was necessary as detailed in 40 CFR
75.30, et seq

.OP0513

- 07 J

- 4 Draft : 0 5/17 / 2011

(4) The quarterly report shall include the re sults of any QA/QC audits, checks, or tests conducted to satisfy the requirements of 40 CFR Part 75 Appendices A, B or K.

(5) Compliance certification. Each quarterly report shall contain a certification statement signed by the facility’s responsible official based on reasonable inquiry of those persons with primary responsibility for ensuring that all of the unit's emissions are correctly and fully

monitored. The certification shall indicate:

(a) Whether the monitoring data submitted were recorded in accordance with the applicable requirements of 40 CFR Part 75 including the QA/QC procedures and specifications of that part and its appendices, and any such requirements, procedures and specifications of an applicable excepted or approved alternative m onitoring method as represented in the approved Monitoring Plan.

(b) That for all hours where data are substituted in accordance with 40 CFR 75.38, the add

on mercury emission controls were operating within the range of parameters listed in the quality

- a ssurance plan for the unit, and that the substitute values do not systematically underestimate mercury emissions.

(6) The format of each component of the quarterly report may be negotiated with the Department’s representative to accommodate the capabilit ies and formats of the facility’s

DAHS.

(7) Each quarterly report must be received by the Department within 30 days following the end of each calendar reporting period (January

- March, April

- June, July

- September, and October

December).

(8) The electronic data reporting detailed in 40 CFR Part 75 shall not be required unless Montana is able to receive and process data in an electronic format.

d. PPL shall maintain a file of all measurements and performance testing results from the MEMS; all MEMS performa nce evaluations; all MEMS or monitoring device calibration checks and audits; and records of all adjustments and maintenance performed on these systems or devices recorded in a permanent form suitable for inspection. The file shall be retained on site for at least 5 years following the date of such measurements and reports. PPL shall make these records available for inspection by the Department and shall supply these records to the Department upon request.