Document b11ZKDYO26Vgd5M91K560eko

April 25, 2017 Anthony "Tony" Campbell President & CEO Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00001 EKPC and our Owner-Members thank you for your dedication and the immediate action taken as EPAAdministrator. EKPC welcomes your continued review of regulations that pose challenges and additional burden on Kentucky families, as well as to EKPC's commitment to provide safe, reliable and affordable energy. Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00002 Company Overview Not-for-profit, member-owned generation & transmission cooperative based in Winchester, Kentucky Provides wholesale power to 16 Owner-Members Owner-Members serve about 28% of state's households and 25% of population Over $885 million in operating revenue and 3.7% billion in assets 712 employees Over 3,500 MW of winter generating capacity Over 12.5 million GWh delivered to Owner-Members in 2016 Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00003 EKPC's Member Distribution Cooperatives Serve Customers in 87 Kentucky Counties A ii m m RE a , & h $ $ ttv c Ct e m & m t q Y . b Cuiftberiastd fis-'ctw 8 IP E r v-r<jv <s :*.7iyr0rt &EA. H v? tAXkri-3 Vii'/EtC c. K KW ift PEC- 8 O w p f < ' >m m 'H U w nEo K ? nor^v O CAtth P T*> V y flfC C Louisville .Cincinnati m Fieitunti-Mason Shelby m Blu^e,@teGKr,aisnsgto| ij | 0~ ? Grayson . Salt qK ^ -- BUieGias. 0 Claii. $ , NWolln* infemVrU-Crounty Jajcfknson Licking Valley 8ig Farmers f , , ,, So..th -\Y H Cl iufmt berland Valley Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00004 Power Plants Support State's Economy Coal-fired plants in two counties (1,687 MW of baseload power, excluding Dale Power Station) {' LiC VvX. Natural gas units in Oldham & Clark Counties (1,556 MW of peaking power) Landfill gas plants in six counties Hydro power through SEPA Community Solar farm under construction (8.3 MW) 2,838 miles of transmission lines, over 370 distribution substations, and 71 transmission stations Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00005 Coal Generation Fleet H.L. S purlock Station VSaysvftte, BY ffYason County) John Slier ,, Burnside, KY (Pulaski County) * 1,346 net MW 341 net MW 4 Units * 2 Units Dsn eUxnpitoss1ur&e 2 (800 MWs) have fui! CCR & ELG ' Mot !>h-Avn. SUJx (reared due to MA TSj on is Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00006 EKPC Fleet Emission Reductions To Date S 02 68,299 tons 2005 NOx 13,720 tons 2005 93% 77% 25% KPC SO H O n nd C? B M S S Q H S F R O M G m m m iQ H SsMOsTfSS Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00007 EKPC's Coal Generation Fleet at Risk aRnedguElLaGtory burdens imposed by MATS, Clean Power Plan, CCR MATS is behind us, $$ are spent and Dale Plant closed as a result CCPooPppeortSetnattiaiollnysliamnidtsinavcohkieevsinNgSfiRnancial lives of Spurlock and EELKGPC- ibsowthelrlualelosnmg uinstpblaenvniienwgemditaigsaotinoen strategies for CCR and pRoewduecripnlganretsgulatory burden is vital to survival of remaining U.S. coal eEnndd oref gthuelairtofirnyacnrceiaelplitvoeasllow plants to continue to operate to the Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00008 Clean Power Plan and New Source Review Principles for CPP Revision * ERA should allow states to propose emission reductions based on regional factors * uFnoictuosr ounnliyt oopneeramtiiosnsison"inrseidduec-tthioen-sfetnhcaet"can be achieved by the generator * Take into account costs, energy impacts & remaining useful life New Source Review should promote efficiency improvements * tPhrroovuigdhe cuhtilaitniegseswiitnhffuleexl imbiilxitywtiothcooumt ppelynathltryouogrhlitiugpagtiroandes to plants or * Generators must be able to pursue projects that increase plant efficiency without being subject to NSR or BACT Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00009 CCR and ELG Problems These two rules are expensive * ASpsucrulorcreknStlytawtiorintteUnnwitsill1c&os2t E(wKePtCas$h28s2ysmteimlliosnatnodcwometpslycrautbbers) Two rules are intertwined * Fly and bottom ash are transported by water to ponds * CCR requires the closure of ash ponds * Ascsrhubpboenrdsbloawredsotwonrage and treatment for fly and bottom ash and wet * wCELiCthGRoui&st eEulsLimeGinowaf ataetsdehr panodndassh- ,thscisrusbebpearrabtlioowndporwocnesmsursetmbeainsespeavreantedif Difficult as promulgated to separate CCR and ELG * gCohaalnsginesatocoEsLt GeffaencdtivCeCmRanshnoeuriadnbdetocofaocrdiliitnaatetedcotmo pmlieaenct ep.olicy Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00010 CCR Solution Relief for ash pond closures * Modify groundwater monitoring well statisticai requirements * aRneatulyrtnictsofrMoamxi"mstuamtisCticoanltasmigninifaictiaonnt Leexvceelesd(aMnCceLss)" as basis for well * Return to filtered groundwater sampies tRherocuegnhtlyEePnAa-catpepdrosvtaetdutsotrayteauptehromriittytinfogr CCR to be managed programs was a positive development and will restore appropriate federal-state cooperation for this program * pEePrAmsithtionugldpriossguraemgsuidance to states for the development of their Guidance should also allow more time for compliance tc enable optimal solutions to be deployed Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00011 ELG Solution Delegate water quality based effluent limitation determinations to the states Delegate technology based solution determinations to the states * Technological solutions shouid be reasonably and economically based Clearly define states as the delegated authority for enforcement Remove current ELG language that precludes the ability to co-mingle streams Clearly define new effluent limitations at the outfall/receiving stream * Remove language that prescribes limitations internal to giant processes, Le. wet scrubbers, and prior to final treatment & reiease Allow more time to comply to optimize solution for all stakeholders Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00012 Summary EKPC continues to evaluate the air, water & waste regulatory requirements to identify best available technologies, contain capital costs & ensure compliance deadlines are met Complex and costly regulatory requirements necessitate realistic compliance timelines Facilities require case-by-case legal, environmental, engineering & operations studies to measure full impacts EKPC is examining all our options but under the increased regulatory burden early plant closures are possible Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00013 Sierra Club v. EPA 18cv3472 NDCA Prod 1 ED 002061 00070564-00014