From: George Tsiolis [mailto:gtsiolis@nj.rr.com]

Sent: Friday, December 20, 2013 3:01 PM

To: Withey, Charlotte

Cc: 'Giff, Jennifer' Subject: Arizona RHR FIP

- Tribal Consultation Between EPA, SRPMIC and PCC

Dear Charlotte,

Following our e

- mails of December 11, PCC’s Brett Lindsay had a conference call on December 17 with Eugene Chen which I understand went very well. At Eugene’s request, PCC is submitting to the EPA the attached budgetary quote for the ammonia solution that Eugene and Brett discuss ed. Perhaps this information will be beneficial to the EPA in refining its analysis of the cost of SNCR at PCC.

Also SRPMIC and PCC are still in the process of reviewing the draft regulatory text that you kindly provided on November 25, in light of the r evised cost analysis that you shared on December 11 and that Eugene and Brett discussed. In the context of the tribal consultation, this review remains primarily to inform a submittal to the EPA of additional financial

information or other information tha t could underlie a decision by the EPA to specify in the proposed or final FIP a compliance date for PCC sometime later than the date (December 31, 2018) specified in the draft regulatory text. In this regard, the Community has asked Verle,
Brett, Jennife r and me whether the EPA has legal authority to select a compliance date later than December 31, 2018, such that releasing additional financial information into the public record would be justified and worthwhile. As we have previously related, the SRPMIC is for

valid historical reasons sensitive to the release of such information. The SRPMIC therefore would like some assurance that releasing additional financial information to the EPA would have the potential to reduce the impact of the FIP on the member s of the Community. Our tentative response to the SRPMIC has been as follows:

(1) If the December 31, 2018 compliance date specified in the draft regulatory text derives somehow from the requirement at 42 U.S.C. § 7491 to install BART “as expeditiou sly as practicable” and corresponding regulatory requirements, or from a requirement under 40 C.F.R. § 51.308(e) that “all necessary emission reductions take place during the period of the first long

- term strategy for regional haze,” then those requirement s would apply to BART sources, whereas PCC is not a BART source; and

(2) If the December 31, 2018 compliance date specified in the draft regulatory text derives from other considerations, then those likely would center on the necessity of commencing the use of SNCR at PCC by that date, and no later date, in order to achieve reasonable progress, relative to the uniform rate of progress or otherwise as required under the statute and rules, and a finding of such necessity would rest on a visibility analy sis.

In response, the SRPMIC has asked whether we have reviewed any visibility analysis that justifies a December 31, 2018 compliance date in particular. The SRPMIC would like to make sure that the visibility analysis has within it, or its assumptions, f lexibility that would allow the EPA to specify a later compliance date, before the SRPMIC releases into the record additional financial information in support of a plea for a later compliance date.Toward this end, could you let us know if there is any re asonable progress or other visibility analysis/modeling that underlies the December 31, 2018 compliance date specified in the draft regulatory text and, if so, could you share a copy or at least elements of the analysis/modeling with PCC?

On behalf of SRP MIC and PCC, I would like to thank you again for the EPA’s efforts in the tribal consultation regarding the proposed and final FIP. And, I would like to reiterate our hope that the tribal consultation will not conclude with the FIP proposal, but may conti nue until the final FIP is promulgated.

If you have any questions or concerns, please don’t hesitate to let us know.

Thank you and best regards,

George A. Tsiolis

Counsel to SRPMIC

- PCC

George A. Tsiolis Attorney at Law 351 Lydecker Street Englewood, New Jersey 07631

Cell: 602

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Fax: 201

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Email: gtsiolis@nj.rr.com

Web: www.gtsiolis.com

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