1. www.kdheks.gov Our Vision – Healthy Kansans living in safe and sustainable environments.

2. Municipal Power Plants Regulatory Update Presented by Mindy Bowman and Ralph Kieffer March 6, 2008 Kansas Air Quality Conference

3. Our Vision – Healthy Kansans living in safe and sustainable environments. Topics  Applicable Federal Regulations  Construction Permits  New Source Review (NSR) Reform  Class II Operating Permits  Class I Operating Permits –Renewals –Compliance Assurance Monitoring (CAM) –Semi-annual Reports –Annual Certifications  Startup, Shutdown, Malfunction Provisions

4. Equipment  Dual fuel reciprocating internal combustion engines  Diesel fuel engines  Turbines  Boilers  New, Replacement, Existing Our Vision – Healthy Kansans living in safe and sustainable environments.

5. Applicable Federal Regulations 40 CFR Part 60 Subpart Da (1/3)  Applies to fossil fuel fired Electric Utility Steam Generating Units > 250 MMBtu/hr  Construct, modify, reconstruct after 9/18/78  Sulfur dioxide (SO 2 ), particulate matter (PM), oxides of nitrogen (NO x ), Opacity limits  Mercury limits vacated  Lower limits, additional requirements for units constructed after 2/28/05

6. Our Vision – Healthy Kansans living in safe and sustainable environments. Applicable Federal Regulations 40 CFR Part 60 Subpart Da (2/3)  Startup, shutdown, malfunction exemption for PM, NO x  Continuous Emission Monitor (CEM) or parameter monitoring for PM  Continuous Opacity Monitor (COM) except gas only units  SO 2 CEMs except for gas only units

7. Our Vision – Healthy Kansans living in safe and sustainable environments. Applicable Federal Regulations 40 CFR Part 60 Subpart Da (3/3)  NO x CEMs  Part 75 harmonization added for monitoring  Exemptions to COMs and CEMs requirements  Recordkeeping  Reporting

8. Our Vision – Healthy Kansans living in safe and sustainable environments. Applicable Federal Regulations 40 CFR Part 60 Subpart Db (1/2)  Construct, modify, reconstruct after 6/19/84  Applies to Electric Utility Steam Generating Units >100 MMBtu/hr, exempt if Da subject  SO 2 limits for coal and oil  PM limits for coal, oil, gas, wood, municipal solid waste  Opacity limits  NO x limits for gas, oil, coal  Lower limits, additional requirements for units constructed, reconstructed, modified after 2/28/05

9. Our Vision – Healthy Kansans living in safe and sustainable environments. Applicable Federal Regulations 40 CFR Part 60 Subpart Db (2/2)  SO 2, NO x limits apply at all times  PM, opacity limits contain startup, shutdown, malfunction exemption  CEMs, COMs with some exemptions  Part 75 harmonization added for monitoring  Recordkeeping  Reporting

10. Our Vision – Healthy Kansans living in safe and sustainable environments. Applicable Federal Regulations 40 CFR Part 60 Subpart GG  Turbine New Source Performance Standards (NSPS)  Applies to turbines > 10 MMBtu/hr  Construction, reconstruction, modification after 10/3/77  New units subject to KKKK  Comply with existing NO x, SO x limits, parametric or CEMs monitoring, recordkeeping, reporting  Part 75 harmonization added for monitoring

11. Our Vision – Healthy Kansans living in safe and sustainable environments. Applicable Federal Regulations 40 CFR Part 60 Subpart KKKK  Turbine NSPS  Applies to turbines > 10 MMBtu/hr  Construction, reconstruction, modification after 2/18/05  NO x, SO x limits  Performance testing, monitoring, recordkeeping, reporting  Exempt from Subpart GG

12. Our Vision – Healthy Kansans living in safe and sustainable environments. Applicable Federal Regulations 40 CFR Part 60 Subpart IIII (1/3)  Stationary Compression Ignition Reciprocating Engine NSPS  Different trigger dates, requirements –fire pump engines –cylinder displacement –emergency  Doesn’t apply to –Modified –Reconstructed –Relocated

13. Our Vision – Healthy Kansans living in safe and sustainable environments. Applicable Federal Regulations 40 CFR Part 60 Subpart IIII (2/3)  Manufacturer’s certification of emission standards for NO x, PM, CO, HC  Engine labeling requirements for manufacturers  Comply with fuel requirements 40 CFR 80.510  Follow manufacturer’s instructions to operate, maintain engine and control device

14. Our Vision – Healthy Kansans living in safe and sustainable environments. Applicable Federal Regulations 40 CFR Part 60 Subpart IIII (3/3)  Emergency engines maintenance checks limited to 100 hours per year  Notification, reporting, recordkeeping requirements  Records –Initial notice –Maintenance –Manufacturer’s certification

15. Our Vision – Healthy Kansans living in safe and sustainable environments. Applicable Federal Regulations 40 CFR Part 60 Subpart JJJJ  Stationary Spark Ignition Reciprocating Engine NSPS  Spark ignition includes dual fuel compression ignition engines with < 2 parts diesel fuel to 100 parts total fuel  Finalized January 2008, applies to some 2007 model year engines  Requirements similar to Subpart IIII

16. Our Vision – Healthy Kansans living in safe and sustainable environments. Applicable Federal Regulations 40 CFR Part 63 Subpart ZZZZ  Air Toxics Standards for Reciprocating Internal Combustion Engines (RICE)  Final rule for area (means not major for toxics) sources January 2008  Standards already in place for major sources, additional applicability and requirements added for small engines  New or reconstructed stationary RICE at areas sources comply with NSPS IIII or JJJJ  Toxics standards coming for existing engines major and area sources 2009

17. Our Vision – Healthy Kansans living in safe and sustainable environments. Applicable Federal Regulations Acid Rain  New Units subject to full Acid Rain requirements –Generator > 25 MW –Buy SO 2 allowances –Monitoring, through CEMs or other approved methods –Resources required are significant  New units subject regardless of size –Can obtain new unit exemption if generator < 25 MW –Fuel sulfur limited to < 0.05 % –Don’t comply with sulfur limits, subject to full Acid Rain requirements

18. Our Vision – Healthy Kansans living in safe and sustainable environments. Construction Permits and Approvals  Required prior to construction –Emissions exceed certain hourly, 24 hour or annual thresholds –Trigger a federal regulation –Subject to Acid Rain  PSD permit requires significant resources

19. Our Vision – Healthy Kansans living in safe and sustainable environments. New Source Review (NSR) Reform - Replacement Units  Like-for-like replacement unit must be functionally equivalent, basic design same  Compare baseline actual emissions to projected actual emissions  Determine if Prevention of Significant Deterioration (PSD) permit is needed  Can use potential emissions for projected actual  If use projected actual and increase not significant: –Document determination, keep records –Monitor emissions of NSR pollutants, calculate, keep records –Report if actual emissions exceed baseline by significant amount

20. Our Vision – Healthy Kansans living in safe and sustainable environments. Class II Operating Permits  Don’t expire  When installing new units, replacing or modifying existing units, review permit conditions for effectiveness  No annual certification by responsible official  If within 85% of limits, report  Reporting requirements and resources for compliance significantly less than Class I

21. Our Vision – Healthy Kansans living in safe and sustainable environments. Class I Operating Permits  Renewals  Compliance Assurance Monitoring  Semi-annual reports –On time –Complete –Examples are available –Update for renewals –Can request modification of report dates  Annual certifications –Responsible official

22. Startup, Shutdown and Malfunctions (SSM) Provisions – Application and Limitations Our Vision – Healthy Kansans living in safe and sustainable environments.

23. What Is the SSM Provision?  May apply when a source has an event with excess emissions  Excess emissions may be excused when they occur solely for the specified startup, shutdown, or malfunction reasons, or in some instances with prior approval, to accomplish maintenance  Example: excess opacity at startup Our Vision – Healthy Kansans living in safe and sustainable environments.

24. Duty to Comply  The air quality regulations require that the source operates in a manner to minimize emissions.  40 C.F.R. 60.11: At all times, including periods of startup, shutdown, and malfunction, owners and operators shall, to the extent practicable, maintain and operate any affected facility including associated air pollution control equipment in a manner consistent with good air pollution control practice for minimizing emissions. Our Vision – Healthy Kansans living in safe and sustainable environments.

25. Violations  Excess emissions (i.e., in excess of limitations) constitute a violation  Failure to report excess emissions is a violation  Excess emissions caused by SSM may be excused if reported timely and with documentation Our Vision – Healthy Kansans living in safe and sustainable environments.

26. Exception  K.A.R. 28-19-11 provides, as an example, that:  “Abnormal operating conditions resulting from malfunction breakdown, and or necessary repairs to control or processing equipment and appurtenances which cause emissions in excess of the limitations specified in the emission control regulations shall not be deemed violations provided that: …” Our Vision – Healthy Kansans living in safe and sustainable environments.

27. Not Automatic  The SSM provision is not automatic  KDHE BAR will review the notification to assure that it meets the regulatory requirements  This is a case-by-case evaluation Our Vision – Healthy Kansans living in safe and sustainable environments.

28. What Regulations Include SSM Provisions?  K.A.R. 28-19-11 –  NSPS  NESHAP  MACT  Operating Permits – K.A.R. 28-19-512: “emergency” Our Vision – Healthy Kansans living in safe and sustainable environments.

29. When Does It Apply?  Each regulation has its own limited applicability  K.A.R. 28-19-11 does not apply to Federal limits, even those adopted by KDHE  NSPS, MACT, NESHAP are specific to their respective programs  28-19-512(d) is specific to operating permit limits Our Vision – Healthy Kansans living in safe and sustainable environments.

30. How Do You Use It?  Determine which limits were exceeded  Determine which requirements apply  Notify KDHE within time limits  Demonstrate that the excess emissions were the result of unavoidable conditions in SSM  Demonstrate that the number of SSM events is not excessive Our Vision – Healthy Kansans living in safe and sustainable environments.

31. State Regulations  K.A.R. 28-19-11 specifies the requirements for SSM under state regulations  This does not apply to Federal regulations, even if adopted by KDHE, such as NSPS and MACT  Predates NSPS and MACT Our Vision – Healthy Kansans living in safe and sustainable environments.

32. K.A.R. 28-19-11  Applies only to KAR:  28-19-20 though -26 Processing operation emissions  28-19-30 through -32 - Indirect heating equipment  28-19-40 through -43 - Incinerator emissions  28-19-61 through -77 - KC Metro VOC RACT rules28-19-650 - opacity regulation  28-19-714 through -719- KC Metro VOC RACT rules  Future RACT rules Our Vision – Healthy Kansans living in safe and sustainable environments.

33. K.A.R. 28-19-11  Requires that source notifies KDHE within 10 days  The notification must specify the nature and occurrence of the event, including duration, estimated excess emissions, cause, and corrective actions taken or to be taken with schedule Our Vision – Healthy Kansans living in safe and sustainable environments.

34. MACT Requirements  Part 63 requires periodic reporting of SSM events, which are part of the recordkeeping requirement  Part 63 (63.10) requires Immediate reporting of SSM events where the action by the operator did not follow the SSM plan required by Part 63 Our Vision – Healthy Kansans living in safe and sustainable environments.

35. However, …  SSM does not apply to excess emissions that result from a failure to maintain the equipment  SSM does not apply where there are recurring or frequent excess emissions at the source Our Vision – Healthy Kansans living in safe and sustainable environments.

36. Key Points to Remember  Notify promptly as specified by the applicable regulation  Be prepared to demonstrate that maintenance has been kept current on equipment  Quantify the excess emissions Our Vision – Healthy Kansans living in safe and sustainable environments.

37. Summary  Applicable Federal Regulations  Construction Permits  NSR Reform  Class II Operating Permits  Class I Operating Permits –Renewals –CAM –Semi-annual Reports –Annual Certifications  Startup, Shutdown, Malfunction Provisions

38. Mindy Bowman KDHE Bureau of Air and Radiation Curtis State Office Building 1000 SW Jackson, Suite 310 Topeka, Kansas 66612 www.kdheks.gov voice 785.296.6421 fax 785.291.3953 mbowman@kdhe.state.ks.us www.kdheks.gov Our Vision – Healthy Kansans living in safe and sustainable environments.

39. Ralph Kieffer KDHE Bureau of Air and Radiation Curtis State Office Building 1000 SW Jackson, Suite 310 Topeka, Kansas 66612 www.kdheks.gov voice 785.296.6428 fax 785.296.1545 rkieffer@kdhe.state.ks.us www.kdheks.gov Our Vision – Healthy Kansans living in safe and sustainable environments.

40. www.kdheks.gov