# United States Department of the Interior

FISH AND WILDLIFE SERVICE

Mr. Gerardo C

. Rios Chief , Permits Office New Mexico Ecological Services Field Office 2I05 Osuna NE Albuquerque, New Mexico 87113 Phone : (505) 346-2525 Fax : (505) 346-2542 June 20, 2014
Cons. #02ENNM00-2014-I-0338

U.S. Environmental Protection Agency (Air-3) 75 Hawthorne Street San Francisco, CA 94105
Dear Mr. Rios:
Thank you for the Biological Assessment (BA) provided on May 19, 2014, and email requesting consultation under section 7 ofthe Endangered Species Act of 1973 , as amended (ESA; 16 U.S.C

. 

### § 1534 et seq.) for the proposed issuance ofa U

.S

. Environmental Protection Agency (EPA) air quality permit allowing Four Corners Power Plant (FCPP) , in San Juan County, New Mexico, to increase emissions ofsulfuric acid mist (SAM). Because oftheir plan to install selective catalytic reduction (SCR) on Units 4 and 5 ofthe FCPP, the operator, Arizona Public Service Company (APS) , has submitted an application to EPA for a federal air quality permit allowing it to increase emissions of SAM. The installation of SCR will significantly reduce emissions ofoxides ofnitrogen (NOx) from FCPP. Interrelated and interdependent actions include the installation and operation ofthe SCR, including associated buildings, such as storage silos, which will occur within the existing footprint ofthe FCPP, and in the middle ofdisturbed
areas or within existing buildings. In addition, although delivery ofreagents necessary for operation of SCR (and any additional controls that EPA requires as BACT for SAM) will increase truck traffic to FCPP, the deliveries will occur on existing roads and paved areas within the existing fence line ofthe facility. The Federal Action under consideration for this consultation is a Federal Prevention of Significant Deterioration (PSD) permit for SAM under the Clean Air Act.
On August 24, 2012, EPA promulgated a Federal Implementation Plan (FIP) that requires FCPP to reduce emissions ofNOx by 80 to 87 percent under the Best Available Retrofit Technology (BART) requirement ofthe Clean Air Act and the Regional Haze Rule. The FIP requires APS to implement one oftwo options to reduce emissions ofNOx: (1) install SCR on Units 1-5 by October 2017 (BART), or (2) close Units 1-3 by January 1, 2014, and install SCR on Units 4 and 5 by July 31 , 2018 , (BART Alternative)

. To comply with the FIP, APS has elected to implementMr. Gerardo C. Rios
the BART Alternative, and accordingly, APS permanently retired Units 1-3 at FCPP by January 1, 2014, resulting in substantial emission reductions ofnumerous air pollutants from FCPP, including NOx and sulfur dioxide (S02). However, the operation of SCR on Units 4 and 5 will result in an increase in emissions of SAM; therefore, APS must apply for a permit under the PSD program and install Best Available Control Technology (BACT) to control emissions ofSAM.
The U.S. Fish and Wildlife Service, New Mexico Ecological Services Field Office (Service) has reviewed the information provided in EPA's Biological Assessment for this project entitled BiologicalAssessment for the Four Corners Power Plant SCR Retrofit Project and email correspondences received from EPA dated May 19, 2014, June 10,2014, and June 13,2014. The proposed action and potential effects ofthe proposed action are described in that documentation and that information is incorporated here, by reference, and will not be repeated except to the extent needed to support our conclusions.
The EPA is requesting concurrence on the determination of"may affect, is not likely to adversely affect" for the endangered Southwestern willow flycatcher (Empidonax traillii extimus), the threatened Mexican spotted owl (Strix occidentalis Iucida), the proposed threatened Yellowbilled cuckoo (Coccyzus americanus), the endangered Colorado pikeminnow (Ptychocheilus lucius), the endangered Razorback sucker (Xyrauchen texanus), the endangered Mancos milkvetch (Astragalus humillimus), the threatened Mesa Verde cactus (Sclerocactus mesae-verdae), and on designated critical habitats ofthese species that may occur within the Deposition Area (see pages 23-26 ofthe BA). The EPA is requesting concurrence on the determination of"may affect, is not likely to adversely affect" for the candidate species Canada lynx (Lynx canadensis) and Roundtail chub (Gila robusta). Candidate species have no legal protection under the ESA, therefore, the Service has no authority to concur with EPA's findings for the candidate species.
The Service concurs with the EPA's determination that the proposed action "may affect, not likely to adversely affect" the federally listed, proposed species, or designated critical habitats described above, because the effects are discountable and insignificant for the following reasons. Based on analysis provided in EPA's final Biological Assessment, and based on additional analysis provided on June 13 , 2014, the increase in SAM emissions are not expected to alter the pH of soils, the pH of surface water, or result in plant foliar injury within the Deposition Area. The acid deposition rates ofsulfur and nitrogen are also expected to be below critical load guidelines. Therefore, the Service concurs with EPA's findings that issuance ofa PSD permit to FCPP to install and operate SCR on Units 4 and 5, and the increase in emissions of SAM, is not likely to adversely affect federally-listed species or their critical habitats, in accordance with 50 CFR 402.13 and 402.14(b). Note that our concurrence is based on the "worst case" emission limit for SAM that EPA may propose in the final PSD permit. IfEPA proposes a final emission limit for SAM in the final PSD permit that is either equal to, or more stringent than, the "worst case" emission limit considered in the BA, then EPA does not need to consult with the Service again on the selected emission limit (BACT) for SAM determined in the final PSD permit. 2Mr. Gerardo C. Rios
However, please contact the Service to verify the above determination and concurrence are still valid if: 1) future surveys detect listed, proposed, or candidate species in habitats where they have not been previously observed; 2) the project is changed or new information reveals effects ofthe action to the listed species or their habitats to an extent not considered in these evaluations ; or 3) a new species is listed that may be affected by this project.
This concludes section 7 consultation on the proposed issuance ofa Federal PSD permit for SAM emissions by FCPP under the Clean Air Act. Thank you for your efforts to protect the endangered fish and wildlife ofNew Mexico. In future communications regarding this correspondence or the proposed project please refer to consultation #02ENNM00-2014

-I-0338

. Ifyou have any questions, please contact Joel Lusk ofmy staffat (505) 761-4709. Sincerely,

Field Office Supervisor

cc: Manager, Navajo Nation Department ofFish and Wildlife, Window Rock, AZ (Attn

. gtom@nndfw

.org andjcole@nndfw

.org) Program Supervisor, Navajo Nation Air Quality Control Program, Window Rock, AZ (Attn. edithsnyder@navajo-nsn.gov) Environmental Manager, Four Comers Power Plant, Arizona Public Service Company, Fruitland, NM (Attn. Richard.Grimes @ aps.com) Interim Director, New Mexico Department ofGame and Fish, Santa Fe, NM

(Attn

. matt

.wunder@ state.nm.us) 

### 3

Regional NEPA Coordinator, Navajo Regional Office, U

.S

. Bureau oflndian Affairs, Gallup, NM (Attn. harrilene.yazzie @bia

.gov) Manager, Indian Program Branch, Western Region, U

.S. Office of Surface Mining, Denver, CO (Attn. rlwilliamson@ osrnre.gov and mcalle @ osrnre.gov) Alexander Smith, Chief , Environmental Resource Management Division, U.S

. Bureau of Reclamation, Glendale, Arizona (alexandersmith@usbr.gov) Chief , Branch ofAir Quality, U.S. Fish and Wildlife Service, Lakewood, CO (Attn. sandra_v _silva@fws.gov) Field Supervisor, U.S

. Fish and Wildlife Service, Arizona Ecological Services Field Office, Phoenix, AZ (Attn. brenda_smith@fws.gov and carrie_marr@fws

.gov)