2015 Coal Handling and Storage Conference CCR & ELG Compliance Strategies for Utilities – Managing Risk Michael Roush, PE Patricia M. Scroggin, PE October 7, 2015

Coal Combustion Residuals (CCR)

CCR Rule Overview Fly ash Bottom Ash Boiler Slag FGD byproducts Federal Register published version on Friday, April 17th Compliance dates triggered by published date (effective October 19th, 2015) Federal Minimum Standard – States can be more restrictive CCR is defined as fly and bottom ash, boiler slag or FGD materials Beneficial uses defined/unencapsulated uses discouraged

CCR Rule Overview Publish Documents on CCR website Citizen Suit Authority Rule does not apply to: Landfills no longer receiving CCR by October 19, 2015 “Closed” CCR impoundments Inactive ponds that are closed by April 17, 2018 CCR units at facilities no longer generating electricity by October 19, 2015 Non-utility operations (manufacturing, universities, hospitals, etc.) CCR beneficially used, placed in mines, or disposed in municipal landfills

CCR Rule – Key Differences from Proposed Version Aquifer location restriction (5’ above) Groundwater schedule extended (1 year to 30 months) No liner retrofit requirements for existing impoundments Alternative liners allowed for new facilities/closures Failure to meet location restrictions or groundwater protection standards requires closure (or retrofit) Timeframes for closure: Standard five year closure Impoundments < 40 acres – up to 7 years Impoundments > 40 acres – up to 15 years Inactive ponds – no CCR after effective date/closed before April 2018 Fugitive dust controls required

Required Demonstrations & Recordkeeping Requirement New CCR Landfills Existing CCR Landfills New CCR Ponds Existing CCR Ponds Inactive CCR Ponds Initial Date Required for Facilities1 Locational Restrictions2 Placement Above the Uppermost Aquifer OCT 2018 Wetlands Seismic Impact Zones Fault Areas Unstable Areas Design Requirements Composite Liner OCT 2016 Leachate Collection & Removal System Prior to Initial Receipt Groundwater Monitoring OCT 2017 1 Date for new facilities generally required before initial receipt of CCR materials or within 6 months of sampling initiation. 2 If location, groundwater or safety criteria not satisfied, ponds must cease receiving CCR within 6 months & begin closure process.

Required Demonstrations & Recordkeeping Requirement New CCR Landfills Existing CCR Landfills New CCR Ponds Existing CCR Ponds Inactive CCR Ponds Initial Date Required for Facilities1 Structural Integrity Criteria Marker DEC. 2015 Hazard Potential Classification Assessments OCT 2016 Emergency Action Plan APR. 2017 History of construction3 OCT. 2016 Construction Plan3 Prior to Initial Receipt Structural Stability Assessments3 Safety Factor Assessments2,3 Weekly Inspections OCT. 2015 Annual Inspections 3 JAN. 2016 1 Date for new facilities generally required before initial receipt of CCR materials or within 6 months of sampling initiation. 2 If location, groundwater or safety criteria not satisfied, ponds must cease receiving CCR within 6 months & begin closure process. 3 Only required for ponds with height of 20 ft. or more: or with height of 5 ft. or more and volume > 20 acre-ft.

Required Demonstrations & Recordkeeping Requirement New CCR Landfills Existing CCR Landfills New CCR Ponds Existing CCR Ponds Inactive CCR Ponds1 Initial Date Required for Facilities2 Other Fugitive Dust Controls OCT. 2015 Run on, Run off Controls OCT. 2016 Hydrologic & Hydraulic Capacity Requirements Closure Requirements Post Closure Care3 1 Inactive CCR ponds do not receive CCR after Oct. 2015, still contain water/CCR after Oct. 2015 must complete closure by Apr. 2018. Intent to close and closure plan must be submitted by Dec. 2015. 2 Date for new facilities generally required before initial receipt of CCR materials or within 6 months of sampling initiation. 3 Does not apply to CCR ponds that have closed by removing all CCR materials and have verified groundwater not contaminated.

Immediate Reporting Efforts October Initiate Weekly Inspections Dust Control Plans “Containerize” CCR Piles December Closure Plans for Inactive Ponds Install markers at impoundment sites January 2016 Initiate Annual Inspections Other Develop Overall Compliance Strategy Design Groundwater Monitoring – 8 samples by October 2017 Site Surveys Items for overall strategy: Closure Plans for all CCR Facilities – Begin conceptual studies to identify preferred overall site compliance plan/schedule Clean closure vs Cap in place - cost estimates/selection Ash Handling Conversions – review options, costs, etc Alternative CCR disposal – preliminary siting and design for landfills and/or ponds Survey for Run-on/Runoff Control and Hydraulic Capacity Assessments – Fall 2015, modifications designed and in place by Aug 2016

Critical CCR Concepts What triggers a pond closure?

CCR Rule – Triggers for Pond Closure Three triggers, closure begins within 6 months after Structural Integrity Criteria/Safety Factor Assessments 18 months/October 2016 Groundwater contamination from unlined ponds 30 months/October 2017 with first annual report due January 2018 Ponds with one of the following liners would not be subject to closure at this date: 2 feet of compacted soil with a hydraulic conductivity < 1 x 10-7 cm/sec A composite liner (60-mil HDPE on top of specified soil layer) An alternative composite liner that meets this criteria Liner Retrofit is also an option Failure to meet location restrictions 42 months/October 2018

Implementing a Holistic Approach CCR burden is bigger than it may appear Ponds are typically key to overall plant water balance Overlap between ELG/CCR & State Water Quality Criteria Potential Projects Involved: Water Balance Optimization Groundwater Monitoring/Remediation Ash Handling Conversions Wastewater Treatment Systems New Process Ponds New Landfills Pond Closures

Effluent Limitations Guidelines (ELG)

Basics of the ELG Rule Legacy Wastewater – not applicable Issued September 30th, 2015 Rule in effect 60 days after entered into Federal Register 50 MW and larger coal units – all electric utilities “An establishment whose generation of electricity is the predominant source of revenue or principal reason for operation” Legacy Wastewater – not applicable First permit applicable November 1st, 2018 “as soon as possible” Absolute last date for compliance December 31st, 2023 Regardless of administratively renewed permits Rolls out in NPDES permit

Rule Definitions Bottom Ash: FGD Wastewater: Ash and slag Under boiler Blowdown/filtrate/FGD gypsum wash water etc. Not: Drains/washdown sumps, scrubber/equipment washdown/cleaning

Options Considered by EPA

Numeric Limits Set by Stream in Rule

FGD Wastewater Treatment Sample Flow Diagram Text

Rule Concerns Anti-circumvention in final rule Zero discharge and applicability Exception: Bottom and fly ash transport water used as Scrubber makeup Internal Monitoring Points on FGD wastewater vs. Common Outfall with reduced concentrations of regulated constituents Existing installed BAT technologies may need to be upgraded Trucking FGD wastewater offsite Compliance still required

Volunteer Clause Applies to FGD wastewater only Thermal evaporation Distillate can be discharged through NPDES permit Compliance can be delayed to December 31st, 2023 Must indicate in writing to permitting authority PRIOR to next permit issuance

Tips on Risk Management under CCR and ELG Holistic approach towards all regulations Get started early Market conditions Define flows and quality Reduce flows if possible Legal should be involved to address interpretations where rule unclear Groundwater Monitoring

QUESTIONS? Patricia Scroggin, P.E. Sr. Water/Wastewater Consultant Burns & McDonnell pscroggin@burnsmcd.com 816-822-3097 Michael Roush, P.E. CCR Handling Specialist Burns & McDonnell mroush@burnsmcd.com 816-823-7069