A PREVENTION OF SIGNIFICANT DETERIORATION (PSD) PERMIT TO 

CONSTRUCT / RECONSTRUCT / MODIFY AN AIR CONTAMINANT SOURCE

Lincoln-Lancaster County Health Department

Environmental Public Health Division

Air Quality Program

3140 N Street

Lincoln, Nebraska 68510

Phone: (402) 441-8040 Fax: (402) 441-3890

Judith A. Halstead, MS

Health Director

Scott E. Holmes, REHS, MS

Environmental Public Health 

Division Manager

Chris Schroeder, MCRP

Air Quality Program Supervisor

LLCHD Air Quality Program Source Number: 00005

LLCHD Air Quality Program Construction Permit Number: 136A

Effective Date of Permit: 04 – 15 – 2016

MM – DD – YYYY

A Permit to Construct / Reconstruct / Modify an Air Contaminant Source is Hereby Issued to:

Permit Holder Name: Nebraska Public Power District (NPPD)

Address: 1414 15th Street

City, County, State, ZIP: Columbus, Platte County, Nebraska 68602

This Construction / Reconstruction / Modification Permit is Issued to the Following Source:

Facility Site Name: NPPD Sheldon Station

Facility Address: 4500 West Pella Road

City, County, State, ZIP: Lincoln, Lancaster County, Nebraska 68368

Facility NAICS: 221112: Fossil Fuel Electric Power Generation

Environmental Public Health Division / Air Quality Program Recommendation:

Permit Writer:

 Approve Issuance

 Deny Issuance

PERMIT WRITER APPROVAL

Air Quality Program Supervisor:

 Approve Issuance

 Deny Issuance

SUPERVISOR APPROVAL

Environmental Public Health Division Manager:

 Approve Issuance

 Deny Issuance

MANAGER APPROVAL

Health Director / Air Pollution Control Officer Authorization:

Pursuant to the delegation contract signed by the Director of the Nebraska Department of Environmental Quality (NDEQ) on April 1, 

1986, the undersigned hereby executes this document on behalf of the Director of the NDEQ.

ACTION TAKEN:

 Approve Issuance

 Deny Issuance Date Judith A. Halstead, MS

Health Director
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 2 of 14

Permitted Emission Unit(s):

This permit allows the owner/operator to construct/reconstruct/modify the following emission unit(s):

Emission 

Unit (EU) #

SCC Code # Emission Point Description Emission Segment 

Description

2-1 1-01-002-23 Unit #2 – External Combustion Boiler and Associated 

Equipment Coal

2-2 1-01-006-01 Unit #2 – External Combustion Boiler and Associated 

Equipment Natural Gas

Introduction – Source Description

The Nebraska Public Power District (NPPD) Sheldon Station, located at 4500 West Pella Road, 

Hallam, Nebraska is an electricity generating station. The existing facility consists of the following 

emissions units: 

Emission 

Unit (EU) #

SCC Code # Emission Point Description Emission Segment 

Description

1-1 1-01-002-23 Unit #1 – External Combustion Boiler and Associated 

Equipment Coal

1-2 1-01-006-01 Unit #1 – External Combustion Boiler and Associated 

Equipment Natural Gas

1-3 N/A Unit #1 – External Combustion Boiler and Associated 

Equipment Coal/TDF/Scrap Rubber

2-1 1-01-002-23 Unit #2 – External Combustion Boiler and Associated 

Equipment Coal

2-2 1-01-006-01 Unit #2 – External Combustion Boiler and Associated 

Equipment Natural Gas

2-3 N/A Unit #2 – External Combustion Boiler and Associated 

Equipment Coal/TDF/Scrap Rubber

3-1 2-01-002-01 Unit #3 – Combustion Turbine A and Associated Equipment Natural Gas

3-2 2-01-001-01 Unit #3 – Combustion Turbine A and Associated Equipment Fuel Oil

4-1 2-01-002-01 Unit #4 – Combustion Turbine B and Associated Equipment Natural Gas

4-2 2-01-001-01 Unit #4 – Combustion Turbine B and Associated Equipment Fuel Oil

5-1 1-01-006-02 Auxiliary Boiler #1 Natural Gas

6-1 1-01-006-02 Auxiliary Boiler #2 Natural Gas

11-1 3-05-010-08 Track Hopper Building Coal Unloading

12-1 3-05-010-11 Track Hopper to Belt Conveyor #1 Coal Transfer

13-1 3-05-010-11 Belt Conveyor #1 to Belt Conveyor #2 Coal Transfer

14-1 3-05-010-11 Belt Conveyor #2 to Active Coal Pile Coal Transfer

14a-1 3-05-010-11 Low-BTU Coal Pile to Reclaim Hoppers #1-4 Coal Transfer

15-1 3-05-010-11 Reclaim Hoppers #1-4 to Belt Conveyor #3 Coal Transfer

16-1 3-05-010-11 High BTU Coal Pile to Reclaim Hopper #5 Coal Transfer

17-1 3-05-010-11 Reclaim Hopper #5 to Belt Conveyor #6 Coal Transfer

18-1 3-05-010-11 Belt Conveyor #6 to Crusher House Coal Transfer

19-1 3-05-010-11 Belt Conveyor #3 to Crusher House Coal Transfer

20-1 3-05-010-10 Crusher House Coal Crushing
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 3 of 14

Emission 

Unit (EU) #

SCC Code # Emission Point Description Emission Segment 

Description

21-1 3-05-010-11 Crusher House to Belt Conveyor #4 Coal Transfer

22-1 3-05-010-11 Belt Conveyor #4 to Belt Conveyor #5 Coal Transfer

23a-1 3-05-010-11 Belt Conveyor #5 to Boiler #1 Coal Bunker 1a Coal Transfer

23b-1 3-05-010-11 Belt Conveyor #5 to Boiler #1 Coal Bunker 1b Coal Transfer

23c-1 3-05-010-11 Belt Conveyor #5 to Boiler #1 Coal Bunker 1c Coal Transfer

24a-1 3-05-010-11 Belt Conveyor #5 to Boiler #2 Coal Bunker 2a Coal Transfer

24b-1 3-05-010-11 Belt Conveyor #5 to Boiler #2 Coal Bunker 2b Coal Transfer

24c-1 3-05-010-11 Belt Conveyor #5 to Boiler #2 Coal Bunker 2c Coal Transfer

26-1 3-05-101-99 Lime Silo – Loading Lime Transfer

27-1 3-05-101-99 Fly Ash from Boilers to Silo

(Bin Vent Filter Exhaust) Fly Ash Transfer

27a-1 3-05-101-99 Fly Ash Filter Separator UCC C (baghouse) via Vacuum Pump B Fly Ash Transfer

27b-1 3-05-101-99 Fly Ash Filter Separator UCC B (ESP) via Vacuum Pump C Fly Ash Transfer

27c-1 3-05-101-99 Fly Ash Filter Separators UCC B or UCC C via Vacuum Pump A Fly Ash Transfer

28-1 3-05-101-99 Fly Ash from Silo & Precipitator to Truck Fly Ash Transfer

29-1 3-05-101-99 Fly/Bottom Ash from Truck to Ash Landfill Fly/Bottom Ash Transfer

30-1 3-05-010-43 Coal Storage Pile – Live Coal Storage

31-1 3-05-010-43 Coal Storage Pile – Standby Coal Storage

32-1 3-05-010-43 Ash Landfill Bottom Ash

33-1 3-05-020-11 Haul Roads – Unpaved Roadway Traffic

34-1 3-05-020-11 Haul Roads – Paved Roadway Traffic

43-1 3-85-001-01 Cooling Tower #1 Mechanical Draft

44-1 3-85-001-01 Cooling Tower #2 Mechanical Draft

46-1 2-02-003-01 Honda GX 240 Air Compressor (8 hp - 0.020 MMbtu/hr) Gasoline

47-1 2-02-001-02 Emergency Generator (650 hp - 4.55 MMbtu/hr) Diesel

48-1 2-02-001-02 Fire Pump 1 (274 hp - 0.96 MMBtu/hr) Diesel

49-1 2-02-001-02 Fire Pump 2 (274 hp - 0.96 MMBtu/hr) Diesel

Introduction – Description of Modification

The original Construction Permit #136 allowed the owner/operator to conduct the “LOI Reduction 

Project” on Sheldon Station Unit #2. The modification included the following elements: 1) installation 

of an over-fire-air (OFA) system, 2) forced draft fan modifications, 3) primary air system modifications, 

4) new cyclone burners, 5) new slag tank vent piping, and 6) modifications of boiler control system to 

incorporate control of the OFA system. The intent of that modification was to reduce emissions of 

nitrogen oxides (NOX) from Unit #2. However, the reduction in NOX emissions was expected to result 

in an increase in emissions of carbon monoxide (CO). Because this source is a major source for the 

purposes of PSD, that modification was subject to the PSD provisions.

This modified permit, being issued as Construction Permit #136A, is being issued to establish a 

minimum stack height for the stack associated with Sheldon Station Unit #2, as well as additional 

applicable requirements that have been requested by the owner/operator. This construction permit 

supersedes the previously-issued Construction Permit #136.
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 4 of 14

Facility Regulatory Classification

 The facility is a major source of hazardous air pollutants (HAP).

 The facility operates units subject to the acid rain provisions of the Clean Air Act (CAA).

 The facility is a Title V major source of air pollution in accordance with LLCAPCPRS Article 2, Section 

2, paragraph (B), as well as 40 CFR Part 70 §70.2.

 The facility is a major stationary source for the purposes of the Prevention of Significant Deterioration

(PSD) of Air Quality in accordance with Lincoln-Lancaster County Health Department Air Pollution 

Control Program Regulations and Standards (LLCAPCPRS) Article 2, Section 2, paragraph (H)(1).

 The modification allowed by this permit will result in increased emissions of carbon monoxide (CO). 

The increase in CO emissions is a significant increase in accordance with the prevention of significant 

deterioration of air quality (PSD) requirements set forth under LLCAPCPRS Article 2, Section 19, as 

well as 40 CFR Part 52, §52.21. The modification allowed by this permit will not result in the increased 

emissions of any other regulated pollutants or hazardous air pollutants. 

 This permit allows for construction/reconstruction/modification of units that are subject to the following 

applicable New Source Performance Standards (NSPS) in Title 40, Part 60 of the Code of Federal 

Regulations (40 CFR 60): 

o Subpart A: General Provisions

 This permit allows for construction/reconstruction/modification of units that are subject to the following 

applicable National Emissions Standards for Hazardous Air Pollutants (NESHAP) in Title 40, Part 63 

of the Code of Federal Regulations (40 CFR 63): 

o Subpart A: General Provisions

o Subpart UUUUU: National Emission Standards for Hazardous Air Pollutants from Coal and OilFired Electric Utility Steam Generating Units

Public Participation

 Pursuant to the provisions set forth in Article 2, Section 15, paragraph (C)(2) and (C)(6) of the 

LLCAPCPRS, construction permit modifications that qualify as a “minor permit modification” do not 

require a public comment period. As such, this permit is being issued without public participation.

Permitting Authority

 The permitting authority for this project is the Air Quality Program in the Environmental Public Health 

Division of the Lincoln-Lancaster County Health Department (LLCHD). All documents related to 

applications for permits to construct/reconstruct/modify or operate any emissions unit or source shall 

be submitted to the LLCHD at the following address.

Lincoln-Lancaster County Health Department

c/o Air Quality Program

3140 ‘N’ Street

Lincoln, NE 68510

Compliance Authorities

 All documents related to compliance activities 

such as reports, tests, and notifications shall be

submitted to the following:

 If required or requested by the EPA, the 

owner/operator shall submit reports, tests, 

and/or notifications to the following:

Lincoln-Lancaster County Health Department

c/o Air Quality Program

3140 ‘N’ Street

Lincoln, NE 68510

US EPA Region 7

APCO–Nebraska Air Compliance Coordinator

11201 Renner Blvd.

Lenexa, KS 66219

Definitions

 Unless otherwise defined, or a different meaning is clearly required by context, the words and phrases, 

as used in this operating permit, the LLCAPCPRS, and the related appendices shall have the meanings 

set forth in LLCAPCPRS Article 2, Section 1 (Definitions).
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 5 of 14

General Conditions

I. The owner/operator shall maintain compliance with all applicable regulations and requirements set 

forth in the Lincoln-Lancaster County Air Pollution Control Program Regulations and Standards 

(LLCAPCPRS), the Lancaster County Air Pollution Control Resolution(Lancaster County 

Resolution R-13-0073), as well as any applicable federal regulations and standards.

II. In accordance with LLCAPCPRS Article 1, Section 1 (Intent), holding of this permit does not relieve 

the owner/operator from the responsibility to comply with all applicable portions of the LLCAPCPRS 

and any other requirements under Local, State, or Federal law. Compliance with this permit shall 

not be a defense to any enforcement action for violation of an ambient air quality standard.

III. In accordance with paragraph (C) of LLCAPCPRS Article 1, Section 2 (Unlawful Acts – Permits 

Required), it is unlawful to:

(A) Construct or operate an air pollution source without first obtaining a permit required under 

the LLCAPCPRS;

(B) Violate any term or condition of this permit or any emission limit set in this permit; or

(C) Violate any emission limit or standard established in the LLCAPCPRS.

IV. Violations, hearings, and orders shall be conducted in accordance with LLCAPCPRS Article 1, 

Section 3 (Violations – Hearings – Orders).

V. Appeals shall be conducted in accordance with LLCAPCPRS Article 1, Section 4 (Appeal 

Procedure).

VI. In accordance with LLCAPCPRS Article 1, Section 5 (Variance), any person who owns or is in 

control of any plant, building, structure, process, or equipment may apply to the Director for a 

variance from rules or regulations. Any person who is applying for, or has obtained a variance 

must comply with all applicable requirements of Article 1, Section 5 of the LLCAPCPRS.

VII. The following provisions of LLCAPCPRS Article 1, Section 6 (Fees) are applicable requirements of 

this permit: 

(A) Paragraph (A) – In accordance with paragraph (A)(1) of Section 6, any person who owns 

or operates a source as defined in Article 2, Section 1 of the LLCAPCPRS and is required 

to obtain a Class I or Class II operating permit in accordance with Article 2, Section 5 of the 

LLCAPCPRS, or is required to obtain a construction permit in accordance with Article 2, 

Section 17 of the LLCAPCPRS, must pay annual emission fees as specified in paragraph 

(A) of Section 6.

(B) Paragraph (D) – In accordance with paragraph (D)(1) of Section 6, any person or source 

required to obtain a construction permit under Article 2, Section 17 (with the exception of a 

construction permit obtained in accordance with Article 2, Section 17, paragraph (O)) shall 

pay a permit fee for activities included under paragraphs (D)(1)(a) through (D)(1)(f) of 

Section 6. The permit fee shall be charged at the rate specified in paragraph (D)(1) of 

Section 6. Any person required to submit fees pursuant to Section 6 shall submit the fees 

to the Director of the Department by check or other authorized transfer payable to the 

Lincoln-Lancaster County Health Department. The fees shall be due and payable within 

thirty (30) days after issuance of the permit.

(C) Paragraph (H) – All money collected from the fees, provided for herein, shall be payable to 

the Lincoln-Lancaster County Health Department and shall be credited to the Air Pollution 

Control Fund.
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 6 of 14

VIII. The following provisions of LLCAPCPRS Article 1, Section 7 (Compliance – Actions to Enforce –

Penalties for Non-Compliance) are applicable requirements of this permit:

(A) Paragraph (A) – The County Attorney or Attorney General may institute enforcement 

proceedings pursuant to Neb. Rev. Stat., §81-1504(23) Neb. Rev. Stat. §81-1508(4), or 

Nebr. Rev. Stat. §81-1528(2) against any person who fails to comply with the requirements 

of the LLCAPCPRS. Nothing in the LLCAPCPRS shall preclude the control of air pollution 

by resolution, ordinance, or rule, regulation, or standard not in actual conflict with the state 

air pollution control regulations. (Ref: Neb. Rev. Stat. §71-1631(15))

(B) Paragraph (B) – Any person who fails to comply with the requirements of the LLCAPCPRS 

or who fails to perform any duty imposed by the LLCAPCPRS shall be subject to a civil 

penalty of not more than ten thousand dollars ($10,000) per day per violation.

(C) Paragraph (C) – Any person who knowingly and willfully fails to comply with the 

requirements of the LLCAPCPRS or who knowingly and willfully fails to perform any duty 

imposed by the LLCAPCPRS shall be subject to felony prosecution under Neb. Rev. Stat. 

§81-1508(f) including a fine of not more than ten thousand dollars ($10,000) per day per 

violation, and up to a maximum six (6) month term of imprisonment.

(D) Paragraph (D) – Enforcement proceedings may include injunctive relief in court to restrain 

any violation that creates an imminent and substantial endangerment to the public health 

or to the environment.

IX. In accordance with LLCAPCPRS Article 1, Section 8 (Procedure for Abatement), if the Director has 

determined a violation of the Air Pollution Control Program after any hearing required hereunder or 

if the Director has probable cause to believe a violation has occurred, the Director shall refer the 

matter to the County Attorney.

X. In accordance with LLCAPCPRS Article 1, Section 9 (Severability), if any clause, paragraph, or 

section of the LLCAPCPRS shall be held invalid, it shall be conclusively presumed that the City 

and County would have enacted the remainder of the LLCAPCPRS not directly related to such 

clause, paragraph, or section.

XI. The owner/operator shall maintain compliance with the requirements set forth in LLCAPCPRS 

Article 2, Section 4 (Ambient Air Quality Standards).

XII. In accordance with LLCAPCPRS Article 2, Section 6 (Emissions Reporting – When Required), the 

owner/operator shall submit completed emission inventory forms for the preceding calendar year 

to the Department by March 31 of each year. The inventory shall include all emissions associated 

with the emission units for which this permit is issued. The inventory form shall be certified in 

accordance with LLCAPCPRS Article 2, Section 7, paragraph (H).

XIII. The following provisions of LLCAPCPRS Article 2, Section 15 (Permit Modifications – Reopening 

For Cause) are applicable requirements of this permit:

(A) Paragraph (C)(2) – Subject to the approval of the Director, the terms of a construction permit 

may be modified without public review through the substitution of alternative provisions, 

provided the following conditions are met:

(1) No emission limit in the original construction permit is exceeded;

(2) No applicable requirement included in an operating permit to which the source is 

subject is violated;

(3) No emissions limit, equipment or operational standard applicable to the source will 

be exceeded;

(4) No emissions limit, equipment or operational standard assumed to avoid a 

classification that would render the source subject to an otherwise applicable 

requirement will be exceeded; and

(5) The nature of the constructed facility will be consistent with that described in the 

original public notice materials.
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 7 of 14

(B) Paragraph (G) – The owner/operator may make changes to a permitted facility without a 

permit revision if the change is not a modification under LLCAPCPRS Article 2, Sections 

18, 23, 27, or 28, the change does not require a construction permit under LLCAPCPRS 

Article 2, Sections 17 or 19, and the change is allowed under the applicable provisions of 

paragraphs (G)(1) or (G)(2) of Section 15.

(C) Paragraph (H) – No permit revisions shall be required under any State-approved programs 

providing for economic incentives, marketable permits, emissions trading or other similar 

programs or processed for changes that are provided for in the permit.

XIV. In accordance with paragraph (A) of LLCAPCPRS Article 2, Section 16 (Stack Heights – Good 

Engineering Practice), the degree of emissions limitation required of any source for control of any 

air pollutant shall not be affected by so much of any source’s stack height that exceeds good 

engineering practice or by any other dispersion technique, except as provided in paragraph (B) of 

Section 16.

XV. The following provisions of LLCAPCPRS Article 2, Section 17 (Construction Permits – When 

Required) are applicable requirements of this permit:

(A) Paragraph (A) – No person shall cause the construction, reconstruction, or modification of

any source specified in paragraphs (A)(1)-(4) of Section 17 without first having obtained a 

construction permit from the Department in the manner prescribed by the LLCAPCPRS.

(B) Paragraph (C) – The owner or operator of any source required to obtain a construction 

permit under the LLCAPCPRS shall submit an application on forms provided by the 

Department.

(C) Paragraph (N) – Modification of the Construction Permit. The purpose of this section is to 

provide a means to address unforeseen situations which may develop in the process of 

constructing or modifying an emission source subject to this section. Modification of the 

construction permit shall be performed as follows:

(1) Subject to the approval of the Director, the terms of a construction permit may be 

modified without public review through the substitution of alternative provisions, 

provided the conditions set forth in Condition XIII(A) of this permit are met.

(2) Modifications meeting the conditions of Condition XIII(A) of this permit shall be 

processed as follows:

(a) The owner or operator shall submit a request for modification of a 

construction permit as provided in LLCAPCPRS Article 2, Section 15, 

paragraph (C)(3) and provide such additional information as may be required 

to determine if the conditions of Condition XIII(A) of this permit have been 

met;

(b) The Department shall review the request and determine whether or not a 

modification of the construction permit is required. The applicant shall not 

proceed with the project until a determination is made by the Director.

(3) Proposed modifications to a construction permit which do not meet the conditions of 

Condition XIII(A) of this permit must be processed through the full construction 

permit process as provided in paragraphs (C) through (M) of Section 17. 

XVI. The following provisions of LLCAPCPRS Article 2, Section 32 (Dust – Duty to Prevent Escape Of) 

are applicable requirements of this permit:

(A) Paragraph (A) – The source shall not cause or permit fugitive particulate matter to become 

airborne in such quantities and concentrations that it remains visible in the ambient air 

beyond the premise where it originates.
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 8 of 14

(B) Paragraph (B) – The source shall not cause or permit a road, driveway, or open area to be 

used without applying all such reasonable measures to prevent particulate matter from 

becoming airborne so that it remains visible beyond the premises where it originates. Such 

reasonable measures include but are not limited to: paving or frequent cleaning of roads, 

driveways, and parking lots; application of water or chemical dust suppressants; and the 

planting and maintenance of vegetative ground cover.

XVII. The following provisions of LLCAPCPRS Article 2, Section 33 (Compliance – Time Schedule For) 

are applicable requirements of this permit:

(A) Paragraph (A) – Except as otherwise noted in specific emission control regulations, 

compliance with the LLCAPCPRS shall be according to the schedule provided under 

paragraphs (A)(1)-(3) of Section 33.

(B) Paragraph (B) – Compliance schedules requiring more than twelve (12) months to conform 

with applicable rules and regulations to meet National Primary and Secondary Ambient Air 

Quality Standards will be accomplished in progressive steps. A report will be made in writing 

to the Director within five (5) days after each step is completed.

(C) Paragraph (C) – Failure to meet time schedules approved in accordance with paragraphs 

(A)(1)-(2) of Section 33 shall constitute a violation of the LLCAPCPRS unless a request to 

amend the time schedule is received at least thirty (30) days before the end of any specified 

period approved for a particular activity. Such a request to amend the schedule shall 

contain the same type of information as required for the initial request for variance as 

described in paragraph (A)(3) of Section 33.

XVIII. The following provisions of LLCAPCPRS Article 2, Section 34 (Emission Sources – Testing and 

Monitoring) are applicable requirements of this permit:

(A) Paragraph (A) – The Department may require any person responsible for the operation of 

an emission source to make or have tests made to determine the rate of contaminant 

emissions from the source whenever it has reason to believe, on the basis of estimates of 

potential contaminant emissions rates from the source and due consideration of probable 

efficiency of any existing control device, or visible emission determinations made by an 

official observer, that existing emissions exceed the limitations required in the LLCAPCPRS.

Such tests may also be required pursuant to verifying that any newly installed control device 

meets performance specifications. Should the Department determine that the test did not 

represent normal operating conditions or emissions, additional tests may be required. Such 

a requirement shall be considered as an order and subject to all administrative and legal 

requirements specified.

(B) Paragraph (B) – Required tests shall be conducted in accordance the test methods and 

procedures established in paragraphs (B)(1)-(7) of Section 34.

(C) Paragraph (C) – The owner or operator of a source shall provide notice to the Department 

at least thirty (30) days prior to testing to afford the Department an opportunity to have an 

observer present. The Department may, in writing, approve a notice of less than thirty (30) 

days. If the testing is pursuant to an underlying requirement contained in a federal rule, the 

notice provisions of the underlying requirement shall apply.

(D) Paragraph (F) – The Director may require the owner or operator of any other emission 

source which is subject to the provisions of these regulations to install, use and maintain 

such stationary monitoring equipment as is required to demonstrate continuing compliance 

with any applicable emissions limitations, and to maintain records and make reports 

regarding such measured emissions to the Department in a manner and on a schedule to 

be determined by the Director.

(E) Paragraph (H) – Notwithstanding any other provisions of LLCAPCPRS, the following 

methods may be used to determine compliance with applicable requirements:

(1) A monitoring method approved for the source and incorporated in an operating 

permit pursuant to LLCAPCPRS Article 2, Section 8;

(2) Any compliance test method specified in the State Implementation Plan (SIP);
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 9 of 14

(3) Any test or monitoring method approved for the source in a permit issued pursuant 

to LLCAPCPRS Article 2, Sections 17, 19, or 27;

(4) Any test or monitoring method provided for in the LLCAPCPRS; or

(5) Any other test, monitoring, or information gathering method that produces 

information comparable to that produced by any method described in paragraphs 

(1) through (4) of this condition.

XIX. The following provisions of LLCAPCPRS Article 2, Section 35 (Compliance – Exceptions Due to 

Startup, Shutdown, or Malfunction) are applicable requirements of this permit:

(A) Paragraph (A) – Upon receipt of a notice of excess emissions issued by the Department, 

the owner/operator may provide information showing that the excess emissions were the 

result of a malfunction, start-up, or shutdown. 

(B) Paragraph (B) – The information provided by the source operator under paragraph (A) of 

this condition shall include, at a minimum, the information specified in paragraphs (B)(1)-(9)

of Section 35.

(C) Paragraph (C) – The owner/operator shall submit the information specified in paragraph (B)

of this condition no later than fifteen (15) days after receipt of the notice of excess emissions.

(D) Paragraph (D) – The owner/operator shall notify the Director, in writing, whenever a planned 

start-up or shut down may result in excess emissions. This notice shall be mailed, no later 

than ten (10) days prior to such action and shall include, but not be limited to, the information 

specified in paragraphs (D)(1)-(10) of Section 35. 

(E) Paragraph (E) – The owner/operator shall notify the Director, in writing, whenever emissions 

due to malfunctions, unplanned shutdowns or ensuing start-ups are, or may be, in excess 

of applicable emission control regulations for one hour or more. Such notification shall be 

mailed within forty-eight (48) hours of the beginning of each period of excess emissions and 

shall include, but not be limited to, the information required in paragraph (D) of Section 35.

XX. In accordance with LLCAPCPRS Article 2, Section 37 (Compliance – Responsibility of Owner/

Operator Pending Review by Director), application for review of plans or advice furnished by the 

Director will not relieve the owner or operator of a new or modified stationary source of legal 

compliance with any provision of the LLCAPCPRS, or prevent the Director from enforcing or 

implementing any provision of the LLCAPCPRS.

XXI. In accordance with LLCAPCPRS Article 2, Section 38 (Emergency Episodes – Occurrence and 

Control: Contingency Plans), if and when the Director declares an air pollution emergency episode 

as defined in Section 38, the source shall immediately take all applicable required actions listed in 

LLCAPCPRS Appendix I until the Director declares the air pollution episode terminated.

XXII. Any modification of the operational and/or construction permit application documents must have 

prior approval from the Department. The source shall provide all necessary information to validate 

the modification, including, but no limited to, additional engineering, modeling, and ambient air 

quality studies.

XXIII. Approval to construct, reconstruct and/or modify the source will become invalid if a continuous 

program of construction is not commenced within eighteen (18) months after the date of issuance 

of the construction permit; if construction is discontinued for a period of eighteen (18) months or 

more; or if construction is not completed within a reasonable period of time. The conditions set 

forth in this permit shall remain applicable requirements until such time that all permitted emission 

units are removed from the source, or until the owner/operator requests that the permit be nullified 

and all permitted emission units are rendered inoperable. 

XXIV. The owner/operator of the source shall notify the Department of the actual date of anticipated initial 

startup of each independently operable emission unit, process, or group of equipment or emission 

units, and said notification shall be postmarked not more than sixty (60) days nor less than thirty 

(30) days prior to such date.
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 10 of 14

XXV. The owner/operator must maintain a copy of the permit and of the letter of transmittal on-site. A 

copy of the permit must also be kept on file at the company's main or corporate office. A copy of 

the permit must be placed on file at each of the aforementioned locations no later than fourteen 

(14) calendar days after the date of receipt of the letter of transmittal.

XXVI. In accordance with the Section 4 of the Lancaster County Air Pollution Control Resolution

(Lancaster County Resolution R-13-0073), upon presentation of credentials and other documents 

as may be required by law, the owner/operator shall allow the LLCHD or an authorized 

representative to perform the following: 

(A) Enter and inspect or cause to be inspected, during reasonable hours, any building, facility, 

or place, except a building designed for and used exclusively for a private residence, as the 

Director deems necessary to determine compliance with the provisions of the LLCAPCPRS

and to require the submission of air contaminant emission information in connection with 

such inspections, tests, and studies.

(B) Have access to existing and available records relating to emissions or discharges, which 

cause or contribute to air pollution or the monitoring of such emissions or discharges;

(C) Issue, modify, or revoke orders prohibiting or abating discharges of air pollutants, or 

requiring the construction of control systems or any parts thereof or the modification, 

extension, or adoption of other remedial measures to prevent, control, or abate air pollution.

(D) Conduct tests and take samples of air contaminants, fuel, process materials, or any other 

substance which affects or may affect discharges or emissions of air contaminants from any 

source, giving the owner or operator a receipt for the sample obtained.

(E) Issue, continue in effect, revoke, modify, or deny permits, under such conditions as the 

Director may prescribe and consistent with the Clean Air Act and the LLCAPCPRS.

This space left blank intentionally.
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 11 of 14

Specific Conditions

XXVII. This permit authorizes the owner/operator to install and operate equipment and systems associated 

with the “LOI Reduction Project” for Emission Unit 2 (Sheldon Station Unit #2). The owner/operator 

shall install and operate equipment and systems associated with the “LOI Reduction Project” for

Emission Unit 2 (EU-2) in accordance with the approved application and the following conditions, 

which have been determined to meet the requirements for Best Available Control Technology 

(BACT) pursuant to Article 2, Section 19 of the LLCAPCPRS and 40 CFR Part 52 §52.21:

(A) Operational Requirements.

(1) All combustion controls shall be fully functional during operation of EU-2 except as 

allowed during emission unit startup and shutdown periods.

(B) Emission Limits.

(1) The owner/operator shall limit the emissions of carbon monoxide (CO) from EU-2 to 

no more than 1.26 pounds per million British thermal unit (lbs/MMBtu) based on a 

30-day rolling average, except during periods of startup and shutdown. Malfunctions 

shall be addressed according to the procedures in Article 2, Section 35 of the 

LLCAPCPRS. For the purpose of this condition, the 30-day rolling average CO 

emission rate shall be calculated in accordance with the procedures established in 

paragraph (D)(1)(c) of this condition.

(C) Emission Testing Requirements.

(1) Relative Accuracy Test Audits (RATA) shall be performed in accordance with the 

following:

(a) 40 CFR 60 – Appendix B – Performance Specification 4

(b) Test Protocol: At least 45 days prior to the date of testing, the 

owner/operator shall develop a formal “Test Protocol” which shall be 

submitted to and approved by the Department prior to commencement of 

testing. This “Test Protocol” shall include, as a minimum, the following items:

(i) A test plan detailing the methods and procedures that will be used 

for testing;

(ii) A test schedule describing the tentative agenda as to when testing 

will occur;

(iii) A description as to how testing will determine compliance with the 

permit conditions along with a copy of the permit.

(c) Pre-Test Notification: The owner/operator shall notify the Department of the 

intent to perform a RATA as required in paragraph (F)(5) of this condition.

(d) Final Test Report: The owner/operator shall submit the results of each RATA 

as required in paragraph (F)(6) of this condition. The Final Test Report shall 

be certified by the tester and shall include, at a minimum, the following:

(i) An executive summary.

(ii) A description of the source testing conditions, including, but not 

limited to, the following:

1. Actual achieved firing rate (i.e. MMBtu/hr);

2. Quantity of fuel consumed (ton/hr);

3. Heating value of the fuel;

4. Ambient atmospheric conditions; and

5. Any other information that may be relevant to the test.

(iii) Copies of all data sheets from the test run(s).

(iv) A description and explanation of any erroneous data or unusual 

circumstance(s) and the cause for such situation.

(v) A final conclusion section describing the outcome of the testing.

(2) The owner/operator shall conduct all testing required by this permit in accordance 

with the requirements set forth in Condition XVIII of this permit.
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 12 of 14

(3) The owner/operator shall notify the Department of the intent to conduct any 

performance tests as required in paragraph (F)(5) of this condition.

(4) The owner/operator shall report the results of all performance tests required by this 

permit as required in paragraph (F)(6) of this condition.

(D) Monitoring Requirements.

(1) The owner/operator shall calculate the CO emission rates in accordance with the 

following requirements:

(a) Hourly average CO emission rates shall be calculated as follows:

(i) The continuous emissions monitoring system (CEMS) associated 

with EU-2 shall complete a minimum of one cycle of operation 

(sampling, analyzing, and data recording) for each successive 15-

minute period.

(ii) Except during periods of CEMS malfunction or calibration, the CEMS 

shall be utilized to collect CO emission data at all times EU-2 is 

combusting fuel.

(iii) The owner/operator shall utilize data collected by the CEMS to 

calculate 1-hour average CO emission rates, in units of pounds of 

CO per million British thermal units (lbs/MMBtu), in accordance with 

the applicable procedures set forth under 40 CFR Part 60 §60.13 

paragraph (h).

(iv) Data for startup and shutdown shall not be used to calculate the 

hourly average CO emissions. 

(b) Daily average CO emission rates shall be calculated as follows:

(i) Daily average CO emission rates shall be calculated using only data 

from days for which at least one (1) hour of valid CO emission data 

was collected and calculated in accordance with paragraph (D)(1)(a)

above. One (1) valid hour of CO emission data can constitute a daily 

average.

(ii) The owner/operator shall divide the sum of the hourly averages by 

the number of hours in which an hourly average was obtained in 

accordance with paragraph (D)(1)(a) above.

(c) Thirty (30) day rolling average CO emission rates shall be calculated as 

follows:

(i) The 30-day rolling average shall be calculated using only data from 

days for which a daily average CO emission rate was calculated in 

accordance with paragraph (D)(1)(b) above. 

(ii) The owner/operator shall sum the daily average CO emission rate for 

each operating day with the daily average CO emission rates for the 

previous 29 operating days (total of 30 consecutive operating days) 

and divide the resulting total by 30.

(d) Annual average CO emission rates shall be calculated as follows:

(i) The annual average CO emission rate shall be calculated no later 

than January 15th of each year, and shall be calculated for the 

previous calendar year (January 1 through December 31).

(ii) The owner/operator shall sum the hourly average CO emission rates, 

calculated according to paragraph (D)(1)(a) above, for the previous 

calendar year. The owner/operator shall then divide the sum of the 

hourly averages by the number of hours for which an hourly average 

was obtained in accordance with paragraph (D)(1)(a) above.

(2) No later than 180 days following the completion of all elements of the OFA 

installation project and resuming normal operation of EU-2, the owner/operator shall 

demonstrate initial compliance with the CO emission limit set forth in paragraph 
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 13 of 14

(B)(1) of this condition by utilizing the continuous emission monitoring system 

(CEMS) associated with EU-2. The CEMS shall be maintained as follows:

(a) The CEMS shall be certified in accordance with 40 CFR 60 – Appendix B –

Performance Specification 4.

(b) Daily calibrations on the CEMS shall be conducted in accordance with 40 

CFR Part 60 §60.13 paragraph (d)(1).

(3) If the annual average CO emission rate for EU-2, calculated in accordance with 

paragraph (D)(1)(d) of this condition, is less than 90% of the emission limit set forth 

in paragraph (B)(1) of this condition, the owner/operator shall monitor CO emissions 

from EU-2 with a CEMS meeting the specifications established in paragraphs 

(D)(4)(a) and (D)(4)(b) of this condition, or with a CEMS that shall be certified and 

operated in accordance with the following requirements:

(a) The CEMS shall be operated in accordance with 40 CFR 60 –Appendix B –

Performance Specification 4.

(b) Daily calibrations on the existing CEMS shall be conducted in accordance 

with 40 CFR Part 60 §60.13 paragraph (d)(1).

(c) A relative accuracy test audit (RATA) shall be performed on the existing 

CEMS each year in accordance with the requirements set forth in paragraph 

(C)(1) of this condition.

(4) If the annual average CO emission rate for EU-2, calculated in accordance with 

paragraph (D)(1)(d) of this condition, exceeds 90% of the emission limit set forth in 

paragraph (B)(1) of this condition, the owner/operator shall monitor CO emissions 

from EU-2 with a CEMS that shall be certified and operated in accordance with 

paragraphs (D)(4)(a) and (D)(4)(b) below. The CEMS shall be installed, certified, 

and operational no later than June 15th following the year in which the CO emission 

rate exceeds 90% of the emission limit set forth in paragraph (B)(1) of this condition. 

Prior to installation and certification of the new CEMS, the owner/operator shall 

continue to monitor the CO emissions using a CEMS meeting the specifications set 

forth in paragraph (D)(2) of this condition.

(a) 40 CFR 60 – Appendix B – Performance Specification 4

(b) 40 CFR 60 – Appendix F

(E) Record Keeping Requirements.

(1) The owner/operator shall keep records in accordance with the requirements set forth 

in 40 CFR Part 60 §60.7 paragraph (f).

(2) The owner/operator shall maintain records of all required monitoring information, 

which shall include the following:

(a) The date and place as defined in the permit, and time of sampling or 

measurements;

(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 existing at the time of sampling or measurement.

(3) The owner/operator shall retain records of all required monitoring data, reports, and 

support information required by this permit for a period of at least 60 months from 

the date of the monitoring sample, measurement, report, or application. Support 

information includes all calibration and maintenance records and all original chart 

recordings for continuous monitoring instrumentation, and copies of all reports 

required by the permit. These records shall be readily accessible and made 

available for inspection upon request by the Department.
Construction Permit No. 136A NPPD Sheldon Station

Permit Type: Attainment Area PSD NSR LLCHD Source #: 00005

Lincoln-Lancaster County Health Department Page 14 of 14

(F) Reporting Requirements.

(1) The owner/operator shall notify the Department if any 30-day rolling average 

exceeds the CO emission limit set forth in paragraph (B)(1) of this condition. The 

notification shall be submitted to the Department in writing no later than 30 days 

after the exceedance.

(2) The owner/operator shall notify the Department if the monitor downtime exceeds the 

5% of the operating time for EU-2 during any calendar quarter. The notification shall 

be submitted to the Department in writing no later than 30 days after the end of the 

calendar quarter.

(3) No later than January 30th of each year, the owner/operator shall submit a report to 

the Department containing the following:

(a) A statement of the emission limit set forth in paragraph (B)(1) of this 

condition.

(b) The annual average CO emission rate for the previous calendar year, 

calculated in accordance with paragraph (D)(1)(d) of this condition.

(4) The owner/operator shall report all criteria air pollutant and hazardous air pollutant 

emissions to the Department annually in accordance with the requirements set forth 

in Condition XI of this permit.

(5) The owner/operator shall notify the Department of the intent to conduct any RATAs 

or performance tests no later than 30 days prior to the scheduled date of testing.

(6) The owner/operator shall submit the result of all performance tests required by this 

permit to the Department within 45 days of the completion of such tests.

(G) Additional Applicable Requirements.

(1) After April 18, 2016, the owner/operator shall not operate EU-2 until such time that 

the stack height has been increased as specified in paragraph (G)(2) of this 

condition.

(2) The owner/operator shall increase the height of the stack associated with EU-2 to 

no less than two hundred ten feet (210 ft.) above a ground-level elevation of one 

thousand four hundred forty feet (1,440 ft.).