Document 2YkrEe3Ra2bD3OkxQobRbB9r

Generating Clean, Affordable, Reliable Electricity for members is what we're about at Associated Electric Cooperative. Associated is owned by and provides wholesale power to six regional and 51 local electric cooperative systems in Missouri, southeast Iowa and no1theast Oklahoma that serve about 875,000 members. AECl's mission: A.5scx::iated's missim is to provioo an ecaunical and reliable p:Mer stq>ly and sul+()rt services to its rrarters. AECl's vision: A.5scx::iated Electric Qx:rerative will tB the IOM3Strost w,olesale p:Mer sui:plier. AECl's core values: Safety - V\e v,ork as a tean and led< rut for ea::h other. V\e roitim.ally strive to impro,,.e safety i:erforrrance and take irnrediate a::tim wien a safety isst.e is ioontifi ed. lntegrity-VIJa cd: vvith hmesty, resr::ect, a::caintabi lity ard a:mmibre1t in all functia,s and interactb1S. This strergthens a.Jr relatim ships vvithin Asscx::iated and oor tl1ree-tiered systen, as well as vvitt1 air strategic b..1Siness r:artners. Nert>er focusec:1-VIJa n9\r forg3t for v-kar1 wa v,ork ard w,y we exist VIJa are ronnitte:l to sui:plying reliable electricity and t:Bing the loNro:;t provioor for a..ir rrartero.M1ers. Er'rl)lc:,y,ee value -V\e have cxxlfi ranee in a..irsel\5 ar'd the organizatioo and wa trust ar'd respect ecd7 other. V\e le...ercg3 the talents and conl:rib.JticrlS of e...ery irdivid.EI, and enccurcg3 individual resi:o1sibility ard q.iick actioo. Perfonnance excellence-VIJa \/8lue, rea::gnize and re.r.ard high i:erforrrnnce. Throogh inro.tatim, tEaTMOrk ard omtimx:x..lS impro.ie ment we a::hie...e effi ciencies ard rreet a..ir rreii::Brs' e,q::ectatio11S. Canrunity citizenship-VIJa r:artner vvith a..ir lcx::al cannmities to inl)rOJe the quality of life. This t:Egins vvith providing eco1omical ard reliable p:Mer and ro1tim.es as we represent A.5scciated in the cann1nity. Business strategy Foo.s a, core b..siness Cam1itrre1t to fi nancial strergth and fl exibility Pra:dive ard roiservati\ rra1agement of risk [)3\lq:na,t and mancgarent of strategic alliances Informed ard irnd.,ej rrarter-OMlers AECI facts: .Aro.It 6EO full-time ewlcyees v,ork at three main locations: Hea::quarters, t--.e..v Ma:lrid Pov\er Plait ard nx:rras Hill Energy Calter. Total ga~ratirg ~ity: 5,700 WV (irdu:lirg roitracted ccal, vvird ard hydrq:o,.er sources) Miles of high-voltage transnissioo tires CMra:I by AECI ard its six CMfier G&Ts: more tren 9,tro 17cv01906 Sierra Club v. EPA ED _0015238_00002878-00001 Collective responses from a member survey gave the three-tiered system served by Associated Electric Cooperative among the highest American Customer Satisfaction Index score among energy providers in the U.S. and higher than the national benchmark for the industry. The ACS/, by the way, is considered the gold standard of consumer satisfaction measurement. The high score irdicates rranters are ~nerally v,,,ell satisfoo witi1 tr1e seNices of tileir lcx:al a:x:peratives. In fa:::t, the lo~r a manber is \Niti1 the rocp, tile higher tile satisfaction score . That's g:xxi rlcVv'S for rrarber ax::pera ttves, ooicn use ti1e survey as a tool to ensure they are rreetirg the needs of tileir rraTibers . The telepl'"'One survey rollecta:j darn ~Jraplic data, OJStarer satisfa:::tbn levels aid q:Jinions al::xx.rt energy issues frcrn meT1bers of 49 ocoperatives in lo.Na, Missouri ard O<lah::::na.. The survey of 12,284 rranbers sl'OM3Cl 1heywant clean, affordable, reliable electricity, ard tr1ey are highly satisltd with tileir ocoi:;eratives. Member co-ops outranll< other utilities 100 80 AECI system average 60 40 20 0 83 All co-ops average 76 IOU average 72 Source: ACS/. June' 2016 Municipal average 68 Older, middle--incx:rre h:usetolds livirg in older h:rres cm r::ayirg rrooest m:nthly electric bills represent the rore i:q:x.1la- tion of electric ~mti\8. These SUM results srON Associated Electric Cc:q:>erative's mission to provide an ea:n:mical, reliable p::w,.er sur:ply ard suJ:lX)rt services to its rranbers ra-nains important. 41p:ro:r,tctrrart:a-h::ta:totisra.eirmrecte;ttm$:D,CXDa~. 16(B{Bltra.e irmrect e;ttms;5,CXDa~. ~tj1-ircoretn.a:tott.(rraettm$1S),aD)ae 6r:aca,tct tn.a:tdcs. f'ar~tv\crthirctcts..1~rrmtasirrli::ai:dtteyae~fficrdd:f. ---33fB(H1tctrran:asae~fficrcrtr,a1:lrrayctth::Eeae01 lmte:lcrfe:I irmres --51 lB(8ltctS:na-rrart:ertna:totsrre4 le:Stt01$:D,aDa)EEf. 72i:acartctrrert:as~ffia-ridce"rertdirmrectk:s5ttm S23,an. lrehget'v\Eg9EBTBSaeb.rdintu.eeh::ts~J5b54. lte~cg3gro.p, cQ:S18b3:i, s6p:RB"1tctrrart:as1p. In tt,s ~g1n.p,4a.rtof10em-e:I e;ttmSID,CXD. rv.o-thirctctlID~ntna:tci:sirdu:e01~crecrtv.oirdrvd.as. Ctn.eS:!ly,cre-1t1irdcttna:tolcs~ddttTEecrrraerrert:es. 4-1-!Bl]rtctal\E(lrrert:asae~;.)p:m,t: sretire:lcraia r::a-s:n; a-d3r::atB1t su-erpb,e:I. 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00002 f\/ernter satisfoo.im varies significantty 'Nitti the age of resjXrdait ard lergth of their ro-cp rrarbership. Older rranters \Aro have b:len with the ax:perative a ooile l)"ovide the highest satisfadim ratirgs. The highest ratirgs rore fran senior rrerrbers vvith l<Mer incx:m:s. rvtrettm t'Eifm th:1/",ebBlrrertasct tteirea::trca::q::aati\errae ra12)~(aw1te1tteretaat:Bmrak). M:ntasffiy:BSai:lotl:.reo:e:l~a.rgm-ertas's:tsa:tbls:aest~ a;rra11a;nirep::~n1s. fvsrtasaerraes:d:i:B:lwm treyid:ntifya;rrmtas,ad rd jLSI:a; utilitya.sbres. rta:'s:re!EaD1W1Jrrartasaeem..lcl}:dto!d rut 1tedifliematwww.wart::mfilSlCIXl)_ tv'Errta-id:rrtityshgsa-nrg931crrrart:asadbAestarrrg th::asll1i:rcg945. fvbetl"a1t-afctren:i:ntst-a:ls:rre~ect1TBrte-id:ntity,a slig1t irpo.ara-1tos tre3)13s..r,..ey. 'brg:rrrerrt:esvVithhge- irmresCill::SB11:typo.,m bi\a" s:tsa:bl iciirg;tra-1 b.rs-innrEiS31b'rrert::es S:tsa:ta1s:aesdiptrrrtij&cg:d tn.afu~is(cg9:!>44), woae lileystrara:lcygJOMrgBlityaufiamld:rrm::s.laQ:ftnem terdtoraebi\a"S:isa::tbl a.es 0-1 cartoo limits, surveyed ma-nbers exp-essed m::xi3st a:n:Err1. Th:se W"O are the least able to pay rmre (senior rrerrters ard ION-inrore h::xJserolcis) exp-essecl the nu5t axrem aver planned reg..ilations. fvt:stmrrtes---ffil=8(81t--aerd1.Mllirgbll:l,lrraetta110i:aca,t balrE95d~Q-e.thirdS:ldtrey'revvillirgbJl:1/!:Dieb s..w:rt treeffrt b reirecatxnariB:rs. lnlee:it in re-e,.,ebeerewq:itaBsg10Mrg,ad4}JBtH1tct ~:x:n:a,tsofall cg:ss.,AXJta:mn.nitys::a; h:Me.Ef, rn::staerct ,....,;uirg b!J:1/rmet:r it cr bs..t:sdre it t:rottas. l'v13Tl::asvattteira:x:::rati\e.toinbmtrana:cut1terv.ak1D a:ticd:ad retanb.srE!:8:Sau0'83iep:s, treCDcp's:xn:antr connnitya-cl 1tem tta: tteira:q:aati\.e srTaTb:f-ON"Erl rvb:,t mar1bers OM'1 their rares, with nnst of these ranas at least 25 years old. f\eN luiies (less than frve years old) aaxx.Jnt for only aoout 4 percent of trie tores surveyed. W:sther in the MiCMeSt rrieans rranters need heatirg ard CXX)lirlJ syStems for their rones. B:drbty s1te~rraye-aws:uc:Bt:rtm intterareadh:5 g:ire:lrra1as-aeV-Ath rBAa"turES EBrma-1tct9..l\ey:drrertasuBCB1tra arcni:lit01irg.S:r1cra-d bN-in:aretna:tok:staehgesta:rmtrctblctY1rirrovmis M::strrart:as(iD~t)LEBea::trotytoretv.alEr. )ltn.rtcreinsxrrart:aslt,,,einarnnta:tus:l,m:xi.dcrcr pre-fa:m:ie:l rare. freg.;ars.rrptm irmmsctarettaltyvVith ag:rtna:totts.A MOf'.BSllraa:hlLEESa:cut 17,ffX)kibla:t-ta.rsa'yi:S'.A rn83l)tictfiecrrmeLEESJ3,croW\Jl~,m-. Survey results ofrrore than 12,CXXJ nmrers are accuate at tf-e naticnal t:erdrretk of95 f:Brrent 'Nith a CXXJfdance level of +/. 1,::ercent To mnirrize bias, distributim ofn-entff age grot..pS is gathered fran pt.iJlidy available data ard lB!3d to establish age qwtas for each cxxp31ative sa1p/e. 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00003 Associated Electric Cooperative is part of a three-tiered system united by the common purpose of serving electric cooperative Cow Branch members with affordable and reliable electricity . Associated is owned by six generation and transmission cooperatives IG8Ts)that formed Bluegrass Ridge Wind Farm it in 1961 to provide them a wholesale power supply. These six G&Tsare owned by Wind Farm 51 distribution cooperatives in Missouri, southeast Iowa and northeast Oklahoma . These local electric cooperatives are owned by more than 875,000 member-consumers . Fiat Ridge 2 Wind Farm Barber Co., Kan. * Chouteau 2015 Associated Flectric Cooperative Inc. All riohts reserved. 17cv01906 Sierra Club v. EPA Thomas Hill Energy Center Headquarters *Windfarms Coal plants . . Gas plants 0 Gas/oil plants Dell Power Plant O Dell, Ark. Power Plant Cooperatives served by KAMO Power and Sho-Me Power Electric Cooperative Visit www.aaci. g 1 27 2016 ED_001523B_00002878-00004 Associated Electric Cooperative is part of a three-tiered system united by the common purpose of serving electric cooperative members with affordable and reliable electricity. Associated is owned by six generation and transmission cooperatives (G&Ts) that formed it in 1961 to provide them a wholesale power supply. These six G&Ts are owned by 51 distribution cooperatives in Missouri, southeast Iowa and northeast O<lahoma. These local electric cooperatives are owned by more than 875,000 member-consumers. Coal 2,3EA3WW Natural gas 2,7EA3WW VVind generation 7f/JWW 1 Hydroelectric 478WW 2017 Associated Electric Cooperative Inc. All rights reserved. 17cv01906 Sierra Club v. EPA Take Control~ Save A Cooperative Effort for Energy Efficiency Visitwww.aeci.org 1-10-al17 ED_001523B_00002878-00005 Pounds emitted per million Btu 4.0~----------3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Sulfur dioxide Nitrogen oxides 2016 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00006 Associated Electric Cooperative has diversified its resources, invested in environmental controls and taken innovative, proactive steps to research technology to comply with environmental regulations at the lowest cost possible for our members. f\/embers' in\18Stments have ra:luced emissions signifrantly, inclLdirg 65 perrant to 00 percent redl.dia1s in sulfur dioxde, nitrcgei oxides ard merrury emissions since 1994, despite inaeasirg electricity demand . A5sociated Electric also lhas proactively rranaJ3(i its carton footprint. it rla5 \Oluntarily oode::l loNemissions natural gas plants, carton..:free wird p;:Mer ard erergy efficiercy to its cx:al, gas ad hyrjrofX',-\r rescurces, ooile keepirg electricity affordable ard reliable for rraTiber a::q::eratives . As a result, Asscciated Electric's emissions rate for carton dioxide Illas signifrantly ard steooily declined in the last 15 years. A5sociated Electric 1roN has 7fJJ rregavvatts of cx:ntracted wird a--ergy, irclu::lirg the aidition of too larg3 vvin::i farms that signifrantly dea'ease::l Asscciated's anount of CD;z emissions in the last fwe years . \/Ve've balanced our resp:nsibilities to prc:du::e clean, affordable, reliable electricity, ooiclil lhas never been easy or inexper1sive, a.d oor cm,mitment to aivironmental ste.A0rdsr1ip has never \A0\/9fed AECI anissions doMl while electricity use increases 140 120 100 80 60 40 Index 200J = 100 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 AECl's emissicns have ckdira:J over tf'f:! last 15 y001-s d3spite ircreasing e/edricity darerd ard a gv.v- irg eo::n::my. In this dat axo re,xe99r1ts tte base year. Gcph oopicts iraeases or d:aooses frun baES year. Electricity use t6fYeES1ts 1rarter k:Ja:f mty. 2009 eklricity ure ctcp due to nscessk:n Errissims rer:resent C03I and gas IDtalc;. GP ,'Utr00. statista.ron AECI COi Emissions tonnage & intensity decrease 21 20 u a.a 0.1 2000 2001 2002 2003 2004 zoos 2006 2007 2008 200!:I 2010 2011 2012 2013 2014 2015 CO;, tms represeri tf'f:! C03I ard gas fret total ernissicYlS CCl;, tctis,1,.,Mf I rep(BS3f)t C03I ard ~ feet total f:Xrissmc; carparoo ID tte total g':!('8raticn mix of fossil fisf, 'Nird erergy atd hy:tor:x:,;,.er. 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00007 I . IVe ai.r Our focus on serving members drives us to be good stewards of the environment and of our members' resources.. As retired rancher and former Associated board president 0. B.. Clark said, "Not to care for that upon which we depend for our living, for the resources entrusted to us, is simply ridiculous . The best environmentalists are the people out there depending on that land. " Our members have lived up to their responsibilities, investing more than $1.1 billion since 1994 to improve air quality and care for our land and water resources . We spend about $45 million a year on environmental control measures and their operations.. Asscx:;iated Electric was me of the first utilities to cofl'v'ert to 100 percent ION-sulfur coal to reduce sulfur doxide emissions 00 r:ercent \Na v..ere was cne of the first to install equipT01t on la~.~ a:al units to reduce ni~n oxides emissions. Asscx:;iated WcE nationally rea:gnized by the US [part-rrent of Interior for innovative ard suxessful mine reclara- tion ard restoratia1 1:\Nice eamirg this i:restigious av.erd. The a:>-q:) \JOluntarily began reducirg mercu1y emissions years al--ea::f of ti1e 2016 a:mpliance date by usirg a treated coal . Asscx:;iated Electrics switd1 to cleaner, ION sulfur coal at its l\eN f'v1cdrid ard Th:mas Hill p:M,er plants in 1994 continL.es to p::sition Asscx:iated \\ell to rreet a1:litional regulations . Envirormental regu continue, 2016 and Air Mercury & Air .. . _ Toxics _ , (MATS) . Interstate Transport (CAIR/ CSAPR) Regional HazeNisibility Multiple NAAQS New Source Review (NSR) Climate NS PS-Existing Sources BACT Permitting International Negotiations Clean Power Plan Water Land& Natural Resources I 316(b) ....___ . Effluent / Limitation l....-~............... Guidelines Transmission II Siting and ,,.., Permitting ,_,J Avian JI Protection "- Waters of the United States Endangered Species NPOES Pesticide Permits W&terbodySpacific Standards Vegetation Management Waste & Chemical Management Coal Ash PCBsin Electrical Equipment HazMat Transport 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00008 Controlling carbon will increase your cost of electricity Associate:! Electric 0:q::erative, oorwiolesale p:Mer suA)lier, has invested in envircnrental cxntrols and researdled l0ti.era:st tech rolo;Jies to ochie\ up to 9J percent reductioos in nitrOJBfl oxioos ard sulfur dioxioo emissims, as v.ell as reduced ,rera.uy emissiais. virairrental cxntrol rreasures to irll)rove air quality a:sts Associated Electric atx:ut $45 millim a year, incltdirg fixed and q:erating a:sts. Those a:sts vvill increase as yO.Jr vvholesale p:Mer generator v..orks to 1Teet alitimal envirairrental regulatia,s m air emissiais, \i\0ter quality and ooal ash handling and storcge- as v.ell as netv n.des to redu::e cart:::o1 emissiais. The Envircfm3nlal Protectia, /:>gaf 1cy issi..a:I its fi nal cart:x:n n.tle, the Cleal Pot-.er Plan, A.Jg. 3, 2015, calling for a 32 per rent redtdm in carl:::o1 emissms natia"M-ioo l:Jy' 2030. States that rely a, ooal for afford3ble, reliable electricity v.ere hit esi:ecially hard. Missa.iri n-iist meet a 37 perrent reduct.im target; IONa, 42 perrent reductm; and O<latiara, 31 percent balo.iv2012 levels. Ultirretely, the rule vvill redure use of ooal -v.t,idl g:nerate:I 63 perrenl of rrarrers' energy in 2016, and shift generatim to nab...iral gas plants ard netv rere.,,,.able a,ergy prtjects. As e>p:ded, the Clean Fbt.er Plant plan was challerg:d. More than 20 states inclu:ling Missa..iri, I0/10, O<lahara ad Mansas - fi led suit ~ainst the plat The l\latimal Rlral Electric Ccq:Brative Associatim also fi led suit. Reprie... came Feb. 9, 2016, wia, the U.S. Suprare Cairt is sued al unprecsdante:I stay of the regulatia, until legal dlalleng- es are resolved. In Septerrb:ff 2016, the U.S. Ca..irt of~ I s for the District of Colurbia Cirmit heard nearly ScVen hairs of oral argurents tut has not yet issued a ruling. The case is e>q:BCted to end up before the Suprare O:x.1rt, l:::ut vvith the netv a:tninistratioo, cabinet and Stl)rare Ca.1rt. aA'.X)int rrent to a:rre in 2017, unrertainty cxntinues a, cart:::o1 restraints for i::m,er plants. Wth all that in rnind, Associated's v..ork to CXlll)ly with the Cleal Pot-.er Pia! slOM3d in 2016; h0t,,e,,,r, Associate:! staff i::articii::ate:l in state plaining rreetings. Associate:! ard n-ent:er systans l1a. gx:d v..orking relatmships with state ~encies in Missa..iri, O<lahara, Arkansas and "f' Missouri Department of Natural R3sources geologist John Pate examines cuttings near 1hcmas Hill Energy Center to detennine what bedrock the drilling has reached. Part of the carbon storage research project, supported by,Aff;I and other ultilities, was conducted at 1homas Hill Energy Center in north-central Missouri. 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00009 The threat of greenoouse gas regulations has lorg proouced uncertainly for the utility indusliy. In 1997, the KyOl:o Prctocol oos adop:ed, callir-g on industrialized nations to reduce gmenhJuse gas sTissions. The ,Afrerican Clean Energy and Security ;\ct of 20J9, also kt"'OM"1 as h3 \/l/aJtJ rnn-l'v'arkey Bill, oould t1ave establisra:l a ~ Emissions tradir-g prt:XJram. It oos ar:pro;ed by the House of Rerxesmtatives on Juoo 26, 2009, !Jut never brougt1t to too Senate ftor lor disc1.ssion or v0te. Finally, in .June 2014, EPA issued its prop:sed rule, follCM.d a year laterwitl1 itsfilal "CIP.an P0,,1R,r Plan" publisl1,ed Q:;t_ 23, 2015. The filal plan: Gives option of rate based prt:XJrarl (Emissions of~ per l'v\/lJ7) or arress-based (tons of 002 r:er year) cap-and-tradn prt:XJrar1 Enoou~es re()acaTent of existing ooal plants with reN rere.vable rnagy sources Drives creation of an snissions trading prt:XJran aror-g states similar to past cap-and-trade legislation that failed to mceive ccrigressional approval D:es oot fully address reliability concrn1s due to lack of tirre to (Jan, site, P3m1it and IJuild gennration and trammission facilities to rreet nation's r'eN generation mix Gives oo relief for strarded investn--er1ts Provides incmtives for helping ION-incare houseoolds irrplEnent rn"Brgy effciency measures that rray l'.):lrnfi nmrerconsurers. !Kansas, w-1ere it ras ganerating assets. Asscciated will ro1tirn.e to a::!va:ate for keepirg electricity afford:t>le ard reliable for rrerrers as leJal dlallenges prcgress. Reducirg our carbon footprint Associated has a la--g history of proactively nan~irg its envi-rcrnmtal resp:nsibilities in l:alanre \1\/ith its rnissim to pro.tics an eccn::mical, relirole PJM3r SlJl::ply to rrerrer systars. In the last 20 years, Associated Electric ard its rrarters have invested n1Jre tha-1 $1.1 billrn to irnpro..e air qLElity and care for land and v,,eter resoorres - and adlieved trarencb.is results. Associated also has oorked to nan~ its cartro footprint. It has di\,ersifi eel its ganeratirg rnix, a:tling b.i\.er--anissirns natural gas plants, cartro-free wind PJM3r and energy effi ciency to its cml, gas and hy{lrq:x:Mer resa..irres, and it has participated in researdl like the cartro capture a,d stora;;ie project. at Thares Hill. Take Control & Save energy effciency progr.m The Take Crntrol & Sa\ energy effi ciency prograr1 is seeing re suits sinre its la.indl in 2(08. To date, Associated ard i::articipatirg cxq::eratives hc:M3 invested n1Jre than $49 millim in tte prcgram trat \1\/ill achie\ an estirrated a.mulati\ lifet.irre savings of u, 1.4 billim kibt.ett hairs - errugh electricity to n. n1Jre than 00,CXX) rrarber l1a...1seholds for a ,.ear. Wiile the prcgram helps rreiters redure their electric bills, it reduces gererata1, w,idl reduces carl:xx1 emissirns. Wind generation Associated and n.tral electric cxq::erati\es t.cd< the le:d in cartro--free \1\/ird PJM3r wien they teared up to bring the fi rst utility scale \1\/ind farms to Missa..1ri, totaling 3(0,CO) kibt.etts. Asscciated then signed !mg-term p'.Jl,r purdlase ~reerrents for 300,0CO kil0110tts fran the Flat Rid;;)e 2Wnd Farm in ll<a-tsas a,d for 150,0::0 kWfran a farm in O<Jaluna. The CC()trocts loci< in fi xe:l Vllird PJM3r ro:;ts w,ile a:tling geo;;irap,ic di\ersity to AECl's \1\/ird p:,,.er resa..ffCES. Total \1\/ind capacity is nON 750,OCO kW. R.ere.Nable hydropcmer ltyrjrq.:x:Mer fran federal d3n5 in MissaJri, O<lahcrna and Arl<.ansas is arother rrajor renev..eble 9311eratirg resa.irce. V\'1ile hydrcp::,1,r is me of a.Jr IOt,,St-rost resa.1rres, it is a limited ro~ m:xlity cJei:a,oont a, rainfall and the capacity of lakes and darn to store the v,,eter. Carbon capture and storage research .Asscx:fated has participated in researdl to fi rd WcJfS of reducirg 1he an:x.1nt of carl::crt dioxda reat1ir-g the alrr'a5p1ere. Associated partnered \1\/ith other Misscui utilities ard the U.S. D:p:lrtrrent of Energy in a three-year prqect to ootennine the feasibility of storing ffi:2 in a saline a:iuifer in Missa..tri. Testir-g at Than3S llill Energy Center sh0M3d it v,,es a virole site for storage. More testing and funding are neeca::I to ro1tims the researdl. (c)2017 Associat!'!dEl!'!ctricCoop!'!rativi,lnc:. All rightsr!'!seM,d. 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00010 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00011 The Envirorrnental Protection Pgercy finalized its ooal corbustion residual rule Dec. 19, LD14, govemirg ooal ash handlirg and disposal at ooal plants. There vvas good nervs in the reN rule: Cool ash rerrained categorized as a nonhazarcbus vvaste, enablirg Associated Electric to continLE to recycle ooth fly ash and oottan ash, Vvhidl it's done for LO years. Recydirg ash reduces landfill usebenefitirg the envirorrnent- and brirgs in revenLE to help keep merrbers oosts affordable. This vvas a big win for oooperatives, Vvhidl had advocated for keepirg ooal designated as nonhazarcbus. ())operatives continLE to VI.Ork with legislators to rrake this designation a certainty, Vvhidl the laN did not provide. l--laA.ever, the final rule also indudes stricter seismic zone requirements that VI.ere not present in the LD10 prop:)Sed rule, and those requirements could oost millions of dollars dLE to retrofits or dosure of ash retention pa,ds at NaN Ma:lrid Po.A.er Plant, as VI.ell as result in significant oost increases for transportirg the ash for disposal. The NaN Ma:lrid PcMer Plant is aoout the only plant in the country affected by the reN seismic requirements, Vvhidl increased requirarents from a 500-year eartrquake event to the mud1 stricter 2,500-year eartrquake event. Associated is V1.0rkirg t i l t l ~ ~ and legislators to address The seismic requirements also rray affectAssociated's ability to use its fairly reN utility landfill at NaN Ma:lrid, Vvhidl vvas built in 2008 and permitted for 10 cells. Ole cell is beirg used. QJenirg a second cell designed to meet the reN criteria will oost aoout $!Clmill~lemtiti~~lld>dmtlai.m.rt off site. Seismic zone requirarents are i:art of several reN criteria in the rule that will increase ash-handlirg oosts, as VI.ell as the cost more infometion on back EPA,~~'$.facilltie$in.i>10,aoo.lQcxra$ Hilt~Grlerearna:t.~~shij-estsafety.ratinQ. ~ ~ridRMel"Plabt~ 0,?"P:ssecn:,d higtestratirg andsinJ:>len1entirg ~torinlirovirgero- smmntrot andvegetatioo~ - Asrociated uses ooal ash for mine reclanation and sells it for other uses, including ament substitute, reducing the amunt disposed. 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00012 of constructirg reN ash facilities. The rule affects all ash IX)l1ds, used rrostly for processirg the ooarser bottan ash fran the ooal units at Associated. Associated staff oontinues to de\.elq:) its cnrpliance plan. At NaN Ma:lrid Po..-..er Plant, options include retrofittirg t\/\0 unlined ash IX)l1ds; closure of those ash IX)l1ds; or 00!1\.ertirg to a dry system for bottan ash. Working ahead to ensure CCJ11)1iance M.. N0N Ma:lrid, Associated proactively 00!1\.erted to a dry system for handlirg fly ash and increased groondtvater rrooitorirg. Pdditional groondtvater rrooitorirg VI.ells will te needed at both plants. Convertirg to a dry system for handlirg bottan ash at NaN Ma:lrid RJ.iver Plant will oost about $30 million. The rule has less imp:1ct at lharas Hill Energy Center, vvhic:h also proactively 00!1\.erted to a dry fly ash-handlirg system and is dosirg its ash retention pond. Associated also b..lilt a pad for bottan-ash handlirg to cnrplywith the reN rules. The rule alb/vs for oontinued teneficial use of ash for mine redamation, vvhic:h is done at lharas Hill. Grourdivater mcnitorirg was expected and is required for all ash IX)l1ds and landfills under the reN rule. Associated will install additional groundtvater rrooitorirg VI.ells at both plants, analyze the data and report findings regularly. The CCR rule is tied to Clean Water M. Effluent Limitation Guidelines, finalized in September 2015, that will affect vvater discharged fran p:Mer plants. A 2013 draft added pollutants that may require rrore vvater treatment or mxlific:ations to ash handlirg. Staff oontinues to revieN the 745-page CCR rule, as VI.ell as the reN effluent guidelines, oonduct rrore detailed seismic analysis at N0N Ma:lrid and research lo.,vest-oost options for cnrpliance. The final rule was published April 17, 2015, in the Federal Register. Carpliance starts six rrooths to 48 rrooths fran April 17, dependirg on the criteria. Legal and legislative action also is expected, so sane uncertainty will oontinue as it has since 2008, when the large ooal ash spill at lVA's Kingston facility prarpted EPA to cevelop the rule. Closed trucks take dry fly ash fran tre plant. Associated manages ooal ash byproducts at its plants by usirg a cx:rrbination of "teneficial use'' mine redamation, recyclirg and resellirg, and lorg-term storage usirg permitted lined ash IX)l1ds and utility waste landfills. Associated has sold bottan ash, a heavier material fran the bottan of the cydones, fran both lharas Hill and NaN Madrid plants since 1994 for use as an aggregate in roof shirgles. Fran 2002 through 2014, it recyded about 983,000 tons of bottan ash to brirg in $1.25 million in revenue. Since 1998, it has sold fly ash fran lharas Hill Unit3, a pulverized unit that produces ash IONer in carbon, for use in makirg ooncrete. It's also p:1rtnered with a University of MiSSa.Jri scientist to create a super-strorg "green" brick OO.JV licensed for manufacturirg. Fran 1998 through 2014, Associated sold about 825,000 tons of fly ash, brirgirg in about $6 million in revenue. Recydirg the ash reduces landfill disposal also. 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00013  ti ~ i p fB.S aA'\6}S f:xx17 r:at cftte wltueatAs:rxiata1EJe::mcO:x::rat~, 1/t.hictJ pid:s itsalfen p,ai..cirgaffadct>le, relici:Jle eld!icityba1crrs:Jwth potectirg tte retural res:ua:s that arrrertes ctf:arJ en fr:r tteir lit./ifn:xis ad<:1/itycflife. Often, Associated Electric has taken the lead with In 1995, Associated converted all five coal units to innovative, costeffective and proactive solutions. It did lowsulfur coal one of the first in the country to do so the same thing when it came to meeting the Mercury and reduced sulfur dioxide emissions Air Toxics Standards, effective in April 2016 for the 90 percent. 11...ower in mercury and hydrogen chloride cooperative. too, this coal forms the foundation for Associated's air Staff started early to craft its compliance plan, and quality compliance. the parts worked together to put Associated's emis In 2011, Associated reduced mercury emissions an- sions of mercury, particulate and hydrogen chloride well other 40 percent from its cyclone units when employ below the new requirements set by the Environmental ees led the nation with implementation of refined coal Protection Agency. In 2016 Associated fin- AECI reduces mercury 8 5 percent technology. This was added in 20'14 on Thomas Hill Unit 3, ished $35 million in projects and met two important MATS deadlines. First, it 1000 p:u"d; ofrre..r.r.u...r.y............................................................... AECl's emissiom a pulverized unit, also decreasing its mercury emissions 40 percent. The technology also was compliant when the 800 rule took effect. It then met reduces costs, amounting to fuel savings of $7.8 million in the 180 day deadline in Oc- 2016, through contracts for tober 2016 to demonstrate 600 that compliance, which use of refined coal related to a President George W. Bush era required submitting scores stimulus package. of testing data and certifica- 400 tions. Meeting MATS require ments took a concentrated 200 -MATS limit After MATS was published in 2012, Associated invested in and completed construction of activated carbon injection effort from staff throughout systems on all five coal units; the cooperative, particu completed maintenance on larly by the environmental, health and safety depart ment, laboratory and instru ment controls teams at each of the coal plants. 0 2008 2010 2012 2014 2016 CM:rall, Ass::ciaa::l la; ra:lce::l 1ls 1i-erruyeriffirrs a::x::u ffi p:1cEnt cun- i::am blB:Elireanssrrs in LD10, t:ebeay refi11:d 1ml cra::tival:d ralrn inje:::h'.:na,issrr10J1tltis, au is tebN1tervt\l"Sre::J1i1eraits b:af. three coal units' electrostatic precipitators to improve capture of particulate matter, reduc ing these emissions to one t1alf of the MATS standard; and AECI started reducing mercury 20 years ago Associated began reducing mercury emissions long before the Environmental F'rotection Agency proposed its first mercury rule in 2005. installed sorbent trap monitor ing systems on the three largest coal units. However, Associated's smaller Thomas Hill units 1 and 2 are very lowemitting units and only require periodic emissions testing, which reduces costs. Ass:::xiate:JactrtcQq:eratA.e Ire. is rnredbJarJpo,;d3s vJ"daxile fXJ,MY to :::ixfffi:::rEI ad51 b::alea:;tric a:q:a-at~,e BYS in AliEs:::ui, s::v!JJ33Sf: .me arJrattmstOJanre that ~1.-e nrre tim 875,CXXJ alSJJ.rrers. lEDs mis:icn is topro.;id3 a1 ecarrnica/ ad re/ici:Je(XJ,M3f s_wf.;ads..rJXJt Eervia:s to itsrrmt:as, irdu:Jirg tf-e 'TEh.10::ntrd &&t..e"ff"ffQleffictrcypra_;r,m, \/w1.W.T~,e.ca:p. lff1 is a Ta.dWB&ag/Qq:eatA.e; m B:p.BIQ:pxtmityBrpq.ff"adpro.;id:3f/disiJilityMiffcl1 Ass:xiate:JB3dric0rparati\R, 2017, all rtflts fES:i\,fil 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00014 Another piece of the erased and A recent taid release on 26 acres at Therres Hill Energy Center WES a1other step in the return of land mce LSed in Associated Electric Ox:perative's past mining q::eratims. The relecSed acr~ surrounds the site of the preJ:aratim plant, b.iilt in the early 1980s to wash high-sulfur coal mined nearby, said lard aJ9nt Kevin Murphy. The 26 acres by the p::>wer plant is now lecSed to rmrby farmers for hay productim. lKevin said it's b:len prcductive for rrore than five years the tirre ~ricd need9d before relecSed by the state aJ:lrtcy regulating reclamatim. With this relecSe, all that remains of the once 16,442 acres under l:x>nd is 807.3 acres that Associated uses for ~rrnitted ESh disp::>sal ES part of its solid wESte plan. This land cmsists of three former mine pits, which provide a safe ard efficier1t rnethcd for ash disp::>5al in close proximity to the p::>wer plant, a soil oorrow area and top soil stored for reclamatim. Better than before Associated WES in the mining business fran 1980 to 1993, when it shut down its mine ar'd cooverted its coal units to b..m1 low-sulfur western coal reducing sulfur dioxide emissims 00 ~rcent to meet 1900 Clea, Air Act krendrnents. In 1993, Associated had 16,442 acres urder taid. For the rrost part, taioad land WES mined or disturt::e::! in s001e way, IKevin explained, and could include mined land, haul rca::ls, coal preparatim areas, soil oorrow arecS or stockpiles. Subject to the Surface Mine Aaclarratim Act, Associated WES required to p::>st a reclaratioo l:xx1d for each acre disturt:ed. 11:onds act ES insurance in CcSe a a:rnpany g:BS a..1t of b..Jsiness and cannot finish reclarnatim. A:>rtims of the taid liability were relecSed ES mined arecS were gra::a:! to approximate original cmta..us, tq::JSoil replaced and ve;:ietatim established to cmtrol era;im. For acrea;;Je to be released, Associated must complete three pl1ESes of reclaratim: Phase I: Backfilling and ra..gh grading, replacement of topsoil ard initial seeding. Phase II: Establish \.g8tatim to cmtrol era;ia-1. Phase Ill: Begin the minimum fiveyear prcductivity derroostration. Most reclamatim wori< WES cm,pleted in '1998 with a $1.8 million oond release m 1,377 acres of mine pro~rty. This was followed by 59 rrore taid releases throogl1 201 'I, totalirg 7,'2132 acres ar'd $6.8 millim in taid liability. Since cm,pletioo of the many reclamatim projects, overall lard mana;:iement ttES bacane a focus for Associated, IKevin said. Aesources are now rrore available to maintain or improve more than 30,000 acres owned aroond and near the Thanas Hill plant. That acreage includes the Ttonas Hill 11..ake and surra..mdirg land leESed and mara;,ed by the Missa..iri D:pgrtrnent ofCalservatim. Associated's stewardship and return of land resa..irces to original or better cmditim hES been recoJnizsd nationally. The cro~rative twice received the U.S. Department of Interior's highest hmor for its innovative, successful recla-natia, that improved water qLElity and transfonnad acres mined by a previa..1s owner into productive pasture, wetlands a-1d forest. The Interstate Minir~ O::mpact O:mmission recoJnizsd Associated ES a natimal lea:iar in mine reclamation with its 2007 IKenes C. E3owling Natimal Mine Aaclamatim Award. Leam more at www.aeci.org TcxJay on forrrerly mined land at 7haras Hill Energy Center, as well as on land never mined, are fXX1ds that provioo fishirg and wikflife habitat, woodlands that qilR st~lter to many sp3cies, land feared to reig/11:xJrirg farrrers for pasture and hay, ard acres for crr:p ard 1/\likilife rereerch lllCiuvvay. 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00015 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00016 17cv01906 Sierra Club v. EPA ED_001523B_00002878-00017