AQ_F_0400050_20110218_CEM_EmissAlloc

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Air Quality
Beverly Eaves Purdue Sheila C. Holman Dee Freeman
Governor Director Secretary
February 18, 2011
Mr. Terrance W. Ryan
Vice President, Asset Management
North Carolina Electric Membership Corporation
P.O. Box 27306
Raleigh, NC 27611-7306
SUBJECT: 2011 Clean Air Interstate Rule(LAIR) Allowances from New Unit Set-aside for
North Carolina Electric Membership Corporation (NCEMC)
NCEMC —Anson Plant, Facility ID 0400050, Air Quality Permit No. 09492
Lilesville, Anson County, North Carolina
NCEMC—I-Iamlet Plant, Facility ID 7700082, Air Quality Permit No. 09488
Hamlet,Richmond County, North Carolina
Dear Mr. Ryan:
Your letter of January 25, 2011 to Michael Abraczinskas, requested 2011 CAIR NOx allowances
for NCEMC Anson Plant and NCEMC I Iamlet Plant. We have determined the facilities are
considered new units under 40 CFR 96,142, LAIR NOx allowance allocations and 40 CPR 96,342,
CAIR NOx Ozone Season allowance allocations. Paragraph (c)(3) of either regulation allows the
CAIR designated representative to request control period CAIR NOx allowances based on the
amount of NOx emissions during the calendar year immediately preceding the control period.
Since the 2010 annual NOx emissions from the Anson Plant were I I I tons, which included 60
tons emitted during the ozone season (May 1 through September 30), the facility's approved 2011
annual NOx allocation is I I I tons which includes 60 tons allocated for the ozone season.
Likewise, since the 2010 annual NOx emissions from the Hamlet Plant were 80 tons, which
included 67 tons emitted during the ozone season, the facility's approved 2011 annual NOx
allocation is 80 tons which includes 67 tons allocated for the ozone season.
The Division of Air Quality (DAQ) will issue these allowances from North Carolina's new unit
set-aside account through the US Environmental Protection Agency's (EPA) Clean Air Markets
Division (CAMD). Should these units emit less than their allocated quantities, any remaining
allowances may be banked, traded, or sold. Any subsequent allocation request will be limited to
1641 Mail Service Center,Raleigh,North Carolina 27699-1641 One
2728 Capital Blvd.,Raleigh,NC 27604 NorthCarolina
Phone: [phone]/FAX [phone] Internet: www,ncair.org ;Vatuirally
An Equal Opportunity/Affirmative Action Employer—50%Recycled110%Post Consumer Paper

Mr. Terrance W. Ryan
February 18, 2011
Page 2
the actual emission level. Should the combined total actual amount of NOx emissions from these
units exceed their combined allocation, you must obtain sufficient allowances to cover that
difference from the cap and trade market operated by CAMD or from banked allowances that you
are holding.
Until DAQ completes a periodic reallocation per 15A NCAC 02D .2413, you must submit an
annual allocation request.North Carolina's NOx allocations for the requested year must be based
upon the previous year's actual NOx emissions. Requests for CAIR NOx annual allowances
should be made on or before May 1 st, and requests for CAIR NOx ozone season allowances
should be made on or before February 1st. Please note that this year's scheduled periodic
reallocation review will be delayed due to EPA's impending revisions to the CAIR rule.
Should you have any questions regarding this approval, please contact Glenn Sappie at (919) 715-
3822 or Alan Drake at [phone].
Sincerely,
Sheila C. Holman
cc: Michael Abraczinskas, RCO
Donald van der Vaart, RCO
Michael Pjetraj, RCO
Steven Vozzo, FRO
Paula Branch, EPA
Central File, Anson County
Central File, Richmond County