1-INDIANADEPARTMENTOFENVIRONMENTALMANAGEMENTWeProtectHoosiersandOurEnvironment.MitcheUE.Danielr,]r.100NorthSenateAvenueGovernorIndianapolis, Indiana46204(317)232-8603ThomasIi?EarterbTollFree(800)451 -6027Commissionerwww.idem.lN.govDecenber31,2008LynnBuhlRegionalA-dmhistratorU.S.EPA,RegionV77 WestJacksonBoulevardChicago,Illinois 60604Re:StateImplementationPlanSubmittal forIndianaRegarding Alternative MonitoringRequirements under326IAC3-5-l(c)(2)(A)(iii)for IndianapolisPower&Light-Harding Street Generating Station.(CO#'2008-02)Dear Ms.Buhl:PursuanttoSection 110ofthe 1990CleanAirActAmendments andTitle 13 ofthe IndianaCode,theIndiana DepartmentofEnvironmentalManagement(IDEM)herewith submitsancamendmenttothe Indiana state implementationplan.Therequestconsistsofa Commissioner's OrderforIndianapolis Power&Light(IPL)-Harding Street Generating Station, 3700SouthHarding Street, Indianapolis,Indiana. IPL submittedarequesttoIDEMunder 326 IAC3-5-l(c)(2)(A)(iii)for analternative monitoringplan.This rulepermits a sourcetouse alternative monitoring when installationofanopacity monitoringsystemwouldnotprovide accurate determinationsofemissionsasa resultofinterferencefiomcondensedwatervapor.The continuous opacity monitoring system(COMS)currently beingoperated on thescrubbedstackassociatedwithUnit7islocatedinductworkpriortotheunit's scrubber. ACOMSlocated after the scrubberwouldbeunreliable duetopresenceofcondensed, uncombined watervapor.IPL hasrequested approvaltomonitor emissions using a particulate mattercontinuousemissions monitorsystem(PMCEMS) instead.IDEMhasapproved analternativemonitoring planfor IPL through aCommissioner'sOrderandissubmitting the alternative monitoringplanforSIPapprovalpursuantto326IAC3-5-l(c)(2)(A)(iv).Thisrequestfor SIP approvalisverysimilartotherequest submittedonFebruary21,2008, forAlcoaPowerGenerating, Inc.onApril25,2008.Pursuanttothenewpublic hearing procedures under 40CFR51.102, IDEMnotifiedthepublicof anopportunitytorequest a public hearingon thisactiononNovember12,2008.No,requests for a public hearingandnocommentson theCommissioner'sOrderwerereceivedbyL.IDEM.AnEqualOpportunityEmployerMs.LynnBuhlPage2of2Inordertoassist withyour reviewof thisstate implementation plan submission, a listofsupportingdocumentsisattached.Throughoutthedevelopmentof thisCommissioner'sOrder,staffofthe OfficeofAir Qualityworkedclosely withyourstafftoensure thatanypotential problems that might exist with thisrequestedstate implementation plan revision wouldberesolved.Irequest thatU.S.EPAapprovethisamendmenttoIndiana'sSIP.Ifyouhave anyquestions regardingthissubmittal, pleasecontactScott Deloney,AirProgramsBranchChief, OfficeofAirQualityat317-233-5694.Assistant~opsionerDMIsbAttachments:Supporting Documentscc:JohnMooney,U.S.EPASteve Rosenthal,U.S.EPASusanBem, IDEMSIPfileRecycledPaper@AnEqualOpportunityEmployer(I'.IPleaseRecycleQSupporting DocumentsAttachmentA:Commissioner's Order#2008-02AttachmentB:Publishers Affidavits regardingLegalNoticeofPublicComment PeriodandOpportunity forPublicHearingAttachment C: Administrative Checklist Commissioner's Order#2008-02 (40 CFR51,AppendixV)

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# AIDEMINDIANADEPARTMENTOFENVIRONMENTAL MANAGEMENTWeProtectHoosiersandOurEnvironment.C.MitchellE.Daniels Jr.100NorthSenateAvenueGovernorIndianapolis, Indiana46204(317)232-8603ThomasW.Easter&TollFree(800)4516027Commissionerwww.idern.lN.gov..STATEOFINDIANA1BEFORE THE INDIANA DEPARTMENT1SS:OFENVIRONMENTAL MANAGEMENTCOUNTYOFMARION)INTHE MATTEROF:1ORDEROFTHECOMMISSIONER1'PURSUANTTO326 IAC3-5-l(c)(2)(A)1FORINDIANAPOLISPOWER&LIGHTCOMPANY-)HARDINGSTREETGENERATING STATION1111111.1NOTICE, ORDER,ANDVARIANCEOF THECOMMISSIONEROFTHEDEPARTMENT OFENVIRONMENTAL MANAGEMENTTo:ThisNotice,Order,andVarianceoftheCommissioneroftheDepartmentofEnvironmental Management("Ordery7)isissued pursuanttoIC13-14-1-9,IC13-14-2-1,IC13-14-8-8,and IC13-14-2-1,andisbasedon326 IAC3-5-l(c)(2)(A)(iii).Duringthecommissioner's reviewitwasdeterminedthat thePetitionermetall requirements of 326LAC3-5-l(c)(2)(A)(iii)accordingtotheterms specifiedbelow:AnEqualOpportunityEmployerCommissioner'sOrder#2008-02andVarianceIndianapolisPower&LightPage2of5PETITION1.PetitionerisIndianapolisPower&Light Company(IPL)whichowns/operatestheHardingStreetGenerating Station(#097-00033)located at 3700 SouthHardingStreetinIndianapolis,Indiana46217.2.Pursuantto326IAC3-5-l(c)(2)(A)(iii),the Petitionerisrequestingapproval todemonstrate compliancewithapplicableparticulate matter(PM)limitsbycontinuouslymonitoringPMemissionsfkomthe scrubbedstack associatedwithUnit7attheHardingStreetGenerating Stationinlieu oftherequirementtomonitor opacityat 326IAC3-5-1(~)(2)(A).3.326IAC3-5-l(c)(2)(A)(iii)provides that IDEM mayapproveanalternativerequirementwhen"installationofanopacitymonitoring systemwouldnot provideaccurate determinationsofemissionsasaresultofinterferencefromcondenseduncombinedwatervapor."4.Thecontinuousopacitymonitoring system (COMS)currentlybeingoperated on thescrubbed stackassociated-withUnit7islocatedinductworkpriortothe unit'sscrubber.Tolocatea-COMinthestackafterthescrubberwould beunacceptable duetothe presenceofcondensed,uncombinedwatervapor.The Petitioner claims thatthislocation provides unrepresentative databecauseoperationofthe scrubberremoves1particulateemissions.Therefore,thePetitioner believes thatanalternativemonitoringplantomonitor particulate emissionsusingaPM continuous emissionsmonitoringisystem(CEMS)ontheUnit7scrubbed stackisacceptable.iFINDINGSCONDITIONSOFAPPROVAL1.IDEMagrees thataCOMS installedafterthePetitioner'swetscrubber controldevicewouldnot provide accuratedeterminationsofopacitydueto theinterferencefromcondensed,uncombinedwaterwithaCOMYslightbeam.IDEMalsoagrees thataPM1.ThePetitionershallinstallandoperatean approvedPMCEMSontheUnit7scrubbed stack.,I2.Thealternativemonitoring planshallconsist ofthefollowingtwophasestocover theperiodbetweenthegranting ofavariancetoallowdiscontinuationofCOMSi..operation(seebelow)andU.S.EPAState ImplementationPlan(SIP) approvalofthealternate opacitymonitoringplan.I!CEMSinstalledandcalibratedaccordingtotherequirements ofPS-11and anyotherapplicable requirementsisthepreferredwaytodeterminetheparticulate emission rateaftera wetscrubber.Commissioner'sOrder#2008-02andVarianceIndianapolisPower&LightPage3of5CA)During the period betweenIDEM'SapprovalofavarianceallowingdiscontinuationofCOMSoperationandsuccessfulPMCEMScertification, thePetitioner agreestocontinue toabidebytheCompliance MonitoringRequirementsapplicable toUnit7'sscrubbedstack inConditionsD.1.11andD.1.12of OperatingPermitNo.T097-6566-00033assetforth intheSettlementAgreementandJointAgreementand MotionforStay filedwiththeOfficeofEnvironmental Adjudication onOctober20,2008.TheCOMSwillcontinueoperation duringthisperiod..B)After completionof thePM CEMScertification, but priortoSIP approvalofthealternative opacitymonitoringplan,operationoftheCOMSandthecompliancemonitoringprovisions applicabletoUnit7'sscrubbedstackinConditionsD.1.11andD.1.12.willbediscontinued andcompliancewithPMlimitswillbedemonstrated usinga certifiedPMCEMSandallassociatedPMCEMSrequirements,i.e.,U.S.EPA PerformanceSpecification 11 (PS-1I).3.Uponsuccessfulcompletionofthecertification ofthePMCEMS,thePetitionershall submitallrequired certification testing informationtotheIDEMOficeof AirQuality.Fromthatpointon,PMcompliance willbecontinuouslymonitoredbytheassociatedPMCEMS;andHardingStreetStation's TitleVpermit willbeamendedtoreflect this changeandinclude all applicable operation,qualityassuranceandaveraging requirements.ORDER1.ThisOrder approvesthe petitionsubmittedbythePetitioner subjecttothe ConditionsoftheApprovalandallowsPetitionertooperate accordingtoanalternativemonitokplanforPM CEMS forUnit7's'scrubbedstackatHardingStreetGenerating Station inlieuofmonitoringopacitywithaCOMSin accordancewith326IAC3-5-1(c)(2)(A)(iii).2.ThisOrder shall applytoandbebindinguponthe Petitioner,itssuccessorsandassigns.Nochangeinownership,corporate, or partnershipstatusof thePetitionershallinany wayalteritsstatusorresponsibilitiesunderthisOrder.VARLANCEPursuantto326LAC3-5-1(c)(2)fossil-fuelfiredsteam generatorsofgreaterthan 100hundredmillionBTUperhour heatinputcapacity arerequiredtomonitorforopacity,unlessanalternativemonitoringrequesthas beengrantedbythedepartment.Therulealso statesthatanalternativemonitoring request grantedbythedepartment shallbesubmittedtoU.S. EPAasaSIPrevisionandshallnot beineffectuntilapprovedasaSIPrevision.ThePetitionerstates that compliancewiththeCOMSrequirement whilewaitingforU.S.(CEPASIPapproval oftheCommissioner'sOrder#2008-02wouldbean"undue hardshiporburden"forthereasons presentedbelowand hasrequestedavariance fromtherequirementof326Commissioner'sOrder#2008-02andVarianceIndianapolis Power&LightPage4of5-IAC3-5-1tocontinuously monitor opacityforUnit7's scrubbed stackat theHarding Street(GeneratingStation perIC13-14-8-8:The Petitioner maintainsthattocontinue tooperate,maintainandquality assure aCOMSsystemwhenafullyfunctionalandcertifiedPMCEMSsystemison-lineandoperatingwouldbeanunnecessary financialburden.Avarianceisneededtobridgethetimeperiod betweensuccessful certificationofaPM CEMSand U.S.EPASIPapprovalofthealternative monitoring plan approvedby IDEMabove.Inthisinterimperiod, thePetitionerwoulddiscontinueuseoftheirCOMSandassociatedcompliancemonitoringrequirements applicabletoUnit 7'sscrubbed stackinConditionsD.1.11andD.1.12 andagreestodemonstrate compliancewith theUnit7scrubbed stackPMlimitusing thePMCEMS.2.OperatingCOMSintheductworkprior to theUnit7scrubberwouldnotberepresentative ofactualemissions since thescrubberremovesparticulateemissions.Opacityisasurrogatemeasurementforcontinuouscompliance withthePM limits.SincePMwillbemeasuredcontinuouslywithCEMS,the monitoringofopacityshouldnotbenecessary.Inmakingadecisionona variance'request,andwhether compliancewiththeruleconstitutes an undue burdenorhardship,IDEMconsiders theenvironmentalimpactofthevariance request,thepresenceofunique circumstances that setthesituation apartfiomtheotherswhomust complywiththerule,andthefinancial impactonthecompany.cBasedontheforegoinginformation,IDEMfinds thefollowing:1.IDEM is, underCommissioner's Order#2008-02,granting approvalofthealternativemonitoring planthatwillbein placeonce theUnit7 scrubberstackPM CEMS systemiscertifiedbut, prior toformalSIPapprovalbytheU.S.EPA.Thealternativemonitoring planwillensure thatthesourceismonitoring for compliancewith,particulatematter emissionlimitationswhileU.S.EPAisapprovingtheplan intotheSIP.2.APM CEMSinstalledandcalibrated accordingto therequirementsofPS-I1and anyother applicable requirementsisthepreferredwayto determinethe particulateemissionrate after awetscrubber.II3.ThisvariancefromopefatingaCOMSon Unit 7'sscrubbed stackandcompliancewiththerequirements applicabletoUnit7'sscrubbedstackin ConditionsD.1.11andD.1.121.isgrantedfor thetime period between successful certification ofaPM CEMSandU.S.EPAapproval of the alternative monitoring plan.Basedonthesefindings,theOfficeofAirQuality,IDEM,hasdetermined thattherequestsubmittedbythePetitionersatisfies the criteriadelineated inIC13-14-8-8forgrantingavariance.Theissuanceofthisvarianceissubjectto theconditionsinCommissioner'sOrder#2008-02foranalternativemonitoringplanforPMCEMSfor Unit7atHarding Street GeneratingStation.Thisvarianceexpires one(1) yearfiomtheeffectivedate. Thisisavariance-fiomstatelawonly(anddoes not change federally approvedSIPrequirements.i!4i1Commissioner'sOrder#2008-02andVarianceIndianapolis Power&LightCPage5of5EFFECTIVEDATEOFORDERPursuanttoIC4-2153-5,IDEM will give noticeofthisOrderto each person whomtheorder isdirected,affectedneighbors,andinanewspaperofgeneralcirculationinthe countyaffectedbythisorder.Pursuant to40CFR51.102,thisOrderwillbesubmittedtotheU.S. EnvironmentalProtectionAgencyasa revisiontotheIndianastateimplementationplan.UponapprovalbytheU.S.EnvironmentalProtectionAgency,thisOrder willbe partoftheIndianastateimplementationplan.thThisOrderbecomeseffectiveon the eighteenth (18)dayafterthisOrderandnotice ofdecisionaredeposited intheU.S.mail.UnderIC4-21.5-3-2(e),IC 4-2153-5,andIC4-21.5-3-7(a)(3)thisOrder maybe appealed byfiling apetitionforreviewwithin eighteen(18)days afterthedatethataffectedpersonsweregiven notice throughservicebyU.S. mail.Apetitionforreviewmustbesubmitted to theOfficeofEnvironmentalAdjudication(OEA), 100NorthSenateAvenue,RoomN-501E,Indianapolis,Indiana46204asrequiredbyIC4-21.5-3-7.Thepetitionmustcontain facts demonstrating youareeithertheapplicant,theperson aggrievedor adverselyaffectedbythisdecision,orotherwise entitledto reviewbylaw.PursuanttoIC4-21.5-3-5(d),theAdministrativeLawJudgewill provide partieswhorequest reviewwith noticeofprehearingrconferences, preliminary hearings,staysororders disposingofallproceedings.L,Personsseeking judicialreviewofthisOrderorVariancemaydosoinaccordance withIC4-21.5-5.Ifyouhaveproceduralorscheduling questions regarding yourrequest for reviewyou maycontacttheOfficeofEnvironmental Adjudication at(317) 232-8591.If you havequestionsaboutthisOrderorVariance,please contactSusanBem,Rules DevelopmentSection, OfficeofAirQuality, (3 17) 233-5697or(800) 451-6027, press0andaskfor extension3-5697(inIndiana)oremailatsbem(iiidem.in.gov.DatedatIndianapolis,Indiana,this/Syofocp&008.%masW.EasterlyCommissioner

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# BEN\'IRONMENrBI.h4:\NAC;EI\~lENI'MARIONCOUNTY.INDIANATo:INDIANAPOI,ISNI-'U'SI':\IjT!I<S307NPENNSYLVANIAS1'-IJC)13OX145PJDIANAPOLIS.IN46206-0145LealNotice-Public&mmentPeriod1'Uk?I,lSHER'SCLAIM(Must1101~XCCC~IW~acIua1lines,nc~tlie~ol~~v~iicli:11ia11foursolldlilies(II'I~~I!.lie111tv111c11t~le11ociy:menrissel).Numbertlfequlv~lcnllincs.Z?tetA%x~T%nililiesrovldingan.opporturrltyforapubl!chearingre,pardlngarevlslontotheorliliesnd~anastateirnlementatlonIan(SIP)jbrIndlanaolEPower&Lght,fllncsIPL?inMarion Countlocated at370q~bu*,","$#:%gnbt;lan4$:$:I.orl~liesill~inticeAllinteristedpersons areinvitedandwilltied&nreasonableoportun~ty)N01'C:I-IAl<GEstoexpressthetyewsconcerning-ther6posedrevisioiltotheS&IJcoli111111ssvldcctlllalsmI;?.(Ictll~~r.~lr~~tThepuroseofthlsno--tlq1s[b-soll~ltpubllc;~$sy;[oqnh~S~&@~3centsperlineacconipllshedfEQ~-giqgeG:t:gehrnoticesconlainingruleandliguiework(50percentof~8%';approvalof~ie-1s-nount)~,d~em~~&~~~~~~~raprooisofpilblicstioniSI.00I~JIeacll()~t~ofi~~Cxcessof1s~~)Order allowsIRLtobper-ateaparticulatemattercontinuousemlssidhsAMOUNT(.)FCLAIMmonitorsystem(PMCEMS)inplaceofacbn-;!~y~;(~g$@~rp&IMPUTINGCOSTa7the,Hard!"StreetGeqeratlnSth8~npur.column7.83cmsSizeoftype17poi111suatt~?he.:av$mflvehon?torjoreurnnbin326IA!!~5%(2)IA)...Thedlskontlgua.n,pftlOnsl.OtheOQM8:'II$e.ln-Etedti:,etgi,'y;tF,;poti.i~,,~.r,~;~ipe,~ohir.rq/'<.:ht~~,~eriji.ir,.v,4[~~.i~,certifiedbyIDWI.Thisthaltheforegoingaccountisjustandcol.l-ccl,thatthe;unountcla~med1slegallydtlc,aflerzFrfiFt$$edlcredits,andtliatnopartofthesamehasbeenaid.U.S.EPAforapmvalasarevision-tbthe.%^.X&g:ER:GLy,nig:amasedpl?hrevislon.onorlef&wU.ecember12---.-2008.dttencapmenti-shouldbedl&tedf~5usanBernMailCode.61-:008500ffic~.of4irQuality--Cle~k~ndiananeartment.ofEnvironinenkl'Manage.Titlement100NorthSenate~venljeIndiana011sIn-049diana4'6204.orfixj17)PUBLISHER'S AFFIDAVIT233-2341.emadatlndlanapolisCentral'~1-sbem@~dem.~n.~ov.Interbrary40.EastSt.Cla!restedattiesmayalsostreetIndianapolis.tndl.Slateorl~ldiillia.SS:presen!oralorwrlmnan14k204..,klARlONCounlycomments.ptthepyljlicThe,Commlss~oner'sOr-hearing:df@ld..,-derISalsoavailableon~dilrelsi~aptllllchear theIDEMwebilteat:IJerson;~llv;~ppe;lrcdbeforeme.3notary~!ilbllc~n311dforsaidCOIIII~Ya~ldslalc.ingonthe@ropqedSlplht$//ww.in.gov/ldem/revlslon:,Requestsfara46.htmpco.publichearlrigmustbe Foradd~tionalinforma.submittedonorbeforetlonpleasecontactSu-tliellntlersiglledI<cl-ryDotlto!~who,bei~~gtllllysworll,saysIllatSHEISclerkDecember122008.Ifnosan'8emRulesSeetiontimelyreqtle;tfora pub- Officeo(AirQualityaflichearing1srecelveda(317)233-5697toll-free'*IlllrIFl'lll~\~~\1~1~1.1~NL'?\'SIJAPEI<S:IU:!Il.\'\'I\I?Ilcsrsp:tllcr(11;CIICI:I~~II~LII:,II~~IIhearin.willnotbeheld.at1-800-451-60171reSSOlnterestedpartlesan andaskfor3.5697hindl-contact.~us~n~em~a~a!theanal,or viaemailatprintedandpublishedintheEngl~shlangllageIIItheclryofINDIANAPOLISinslatecontactaform;)tlonsbe1dem.ln.ov.liited-belowtoser!3.aIndl%"als:r~q$ilng.~ea-hearinhdr;beensched-sonable-accommadatlonsJII~cui111lyaforesaid.andthatllirpr111te(Ililnllera~tachedhereto1satrilcCOJI~.uled.(JiahearinisforpartioipaU6n;'lri:thisscheduedanotherkgaleve"tshdirldcolifactthenotlcew~llbe publishedInd~anaQ_eartrfientof~',li~cllwasduly~)i~blisliedinsadpal~erforII~me(s)hetweenIhedalesof.stat~ngthedatetlpe~nv~ronrnentalMariaeandlocatlonofthkmeet:ment4meiicans~7thlng.~isadlitiesA?coordina-1111~12008311d1111?12008Acopy oftheCommis-torat:slonersOrderisavallAttn:ADACoordinatorableto.any..pergon,uponredusstandIsa,va~lpbleforubllcInspydionatthePollowinglocations:Indiana.Deartment ofEnvironrhedilManage-mentOficenAlrh*lItylhdlanaGovernment~ejlter-~orth160NorthSenate~y6nueldthfloor-Eastwlng.lidlanap-RelaService711or1.011slndlana800-!43-3333pleaserplndkhapbllsOfficeofEn.vldearillhimu@o?7;vlronmentalServiceshours'notlfication.'2700Southpelmont&v$(S-11/12/08-5361049)nueIndlanapolls.lnd~ana462i1.rorm65-REV1-88NOTARYPUBLICMycommissionexpires:STATEPRESCRIBED FORMULA'RATE PERLINE7.83PICACOLUhfN-94POINTPUBLISHED1TIME=,33994POINTS15.7PT.TYPE-16.49PUBLISHED2TIMES=,50916.49 EMS1250-,06596SQUARESPUBLISHED3TIMES=,679,06596SQUARESx$5.14-,339CENTSPERLINEPUBLISHED4TIMES=848

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# CCADMINISTRATIVE CHECKLIST(40CFR51,AppendixV)1.The submittalisaccompaniedby aformalletterofsubmittalEnclosedfiomthe governor or hisdesignee.2.Evidencethatthe State hasadoptedthe plan in the State codeAttachmentAorbodyofregulations;orissuedthe permit,order, consentagreement("document");infinalform.a.Dateofadoptionorfinalissuance:November7,2008b.The effective dateofthe plan,ifdifferentfiomtheadoptiodissuancedate.18 days afterissuance3. Evidence thatthe Statehasthe necessarylegalauthorityIC13-14-1-9under statelawto adoptandimplementthe plan.IC13-14-2-14.A copy of theactualregulationordocument submittedforapprovalandincorporationbyreference into the plan,including the following:a.Indicationofthechangesmadetothe existingapprovedplan, where applicable.b. The submittal shallbea copyoftheofficialStateregulationor document signed, stamped,datedbythe appropriate state official indicatingthatitishllyenforceableby theState. Effective dateshallbestatedinthedocumentitself.5.Evidence thatthe State followedalloftheproceduralrequirementsofthe State'slawsandconstitution inconductingandcompleting theadoptiodissuanceofthe plan.6.Evidence thatpublic notice wasgiven,including dateofproofofpublication.7.Certification thatpublic hearings were held inaccordancewithinformationprovidedinpublic hearing-notice.8.Compilationofpublic commentsandState'sresponse.9.Technical SupportDocument(ifsource specificchange).AttachmentAAttachmentAAttachmentCNopublic hearingwas requestedas aresultofthepublishedpublic hearing noticeNocomments