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HomeMy WebLinkAboutNC0004987_Supplemental Information_20171206DUKEPaul Draowtch ENERGY® Senior Presde Environmental, Health h &Safetyty 526 S Church Streei Mad Code EC3XP Charlotte, NC 28202 (980) 373-0408 December 6, 2017 Ms. Julie Gryzb RECEBVEMENROWR North Carolina Division of Water Resources 1617 Mail Service Center DEC 12 2017 Raleigh, NC 27699-1617 Water R@SOIdPC@5 Permitting Section RE: NPDES Permit No. NC0004987 Marshall Steam Electric Plant Supplemental Information — ELG Applicability Dates Dear Ms. Gryzb, On May 9, 2016, Duke Energy Carolinas, LLC (Duke) submitted a justification for the appropriate applicability dates for compliance with the 2015 revisions to the Steam Electric Effluent Limitation Guidelines (2015 ELG Rule) for the Marshall Steam Electric Plant (Marshall). The justification demonstrated that the appropriate applicability date to comply with the more stringent best available technology (BAT) limits for flue gas desulfurization (FGD) wastewater and bottom ash transport water (BATW) was January 31, 2021. This applicability date was adopted in the NPDES Permit for Marshall issued on September 9, 2016. On September 18, 2017, U.S. EPA issued a final rule postponing the compliance dates for the more stringent BAT limits for BATW and FGD wastewater. As a result of that final rule, Duke is submitting this supplemental information and requesting that North Carolina Department of Environmental Quality (NCDEQ) postpone the applicability date for the no discharge limit for BATW imposed on Outfall 002 and the limits for arsenic, mercury, nitrate/nitrite and selenium imposed on internal Outfall 004 and internal Outfall 006 until December 31, 2023 and include a reopener clause that allows the permit to be modified to implement the revised ELGs in the event the U.S. EPA adopts new compliance deadlines and/or further revisions to the rule. BACKGROUND On May 9, 2016, Duke submitted a written justification to NCDEQ regarding appropriate compliance dates for the new best available technology (BAT) limits for bottom and fly ash transport water and flue FGD wastewater discharged pursuant to Marshall's NPDES permit. Since that time, on August 11, 2017, the EPA Administrator signed a letter announcing his decision to conduct a rulemaking to potentially revise the new, more stringent BAT effluent limitations and pretreatment standards for existing sources (PSES) in the 2015 ELG rule that apply to BATW and FGD wastewater. In a follow-up action, EPA filed a motion on August 14th with the Fifth Circuit Court of Appeals to put portions of the ELG appeal on hold, while EPA reconsiders certain ELG limits. Within the motion, EPA stated its intent to conduct a rulemaking to potentially revise the more stringent BAT effluent limitations and PSES for BATW and FGD wastewater. This motion was granted by the Fifth Circuit Court of Appeals on August 22"d. Based on these actions by the EPA Administrator, Duke requested the removal of the no discharge limit for BATW imposed on Outfall 002 and the limits for arsenic, mercury, nitrate/nitrite and selenium imposed on internal Outfall 004 and associated applicability dates. However, in a subsequent rulemaking (Postponement Rule), the earliest compliance date for the more stringent limits for BATW and FGD I Ms. Julie Gryzb December 6, 2017 Page 2 wastewater were postponed for a period of two years (i.e. until November 1, 2020), while EPA conducts a rulemaking potentially revising the limits (82 Fed. Reg. 43,494 (Sept. 18, 2017)). Within the preamble of the Postponement Rule, EPA projects it will take approximately three years to propose and finalize a new rule (Fall 2020) and anticipates that the next rulemaking will address the compliance dates for the revised BAT limits for BATW and FGD wastewater in some fashion. Furthermore, the intent of the Postponement Rule is to preserve the status quo and to avoid any unnecessary expenditure for compliance with limitations and standards for FGD wastewater and BATW, because those BAT determinations and associated limits may change as a result of further rulemaking (82 Fed. Reg. at 43,496 (Sept. 18, 2017). REQUESTED ACTION Based on the Final Postponement Rule, Duke now respectfully requests that NCDEQ set the applicability date for new FGD wastewater and BATW effluent limits as December 31, 2023. In addition, Duke requests the inclusion of a reopener clause to allow the permit to be modified in the event U.S. EPA revises the compliance deadlines and/or the limits for BATW and FGD wastewater. Duke believes a revised applicability date and reopener clause is appropriate because NCDEQ will need sufficient time to modify the Marshall NPDES permit to incorporate U S. EPA's revised effluent limits after its new rulemaking, and Duke will need sufficient time to develop and implement a compliance plan for those new effluent limits. Even though capital projects are underway to meet the compliance obligations under the North Carolina Coal Ash Management Act (CAMA) and Coal Combustion Residual (CCR) Rule, additional planning and operational and maintenance (O&M) expense is required to comply with the no discharge limit of BATW and to meet the more stringent BAT limits for FGD wastewater. Without a revised applicability date, Duke would bear the planning and O&M costs to comply with limits that may be determined inappropriate and unjustified. Sincerely, Paul raovit Senior Vice President Environmental, Health and Safety cc- Richard Baker Shannon Langley