2201 New Jersey Department of Environmental Protection v. Commonwealth of Pennsylvania, Department of Environmental Protection and Lower Mount Bethel Energy; EHB doc. no. 2001-280-C

ENVIRONMENTAL
HEARING BOARD

New Jersey Department of Environmental Protection v. Commonwealth of Pennsylvania, Department of Environmental Protection and Lower Mount Bethel Energy; EHB Doc. No. 2001-280-C

[33 Pa.B. 5673]

   The New Jersey Department of Environmental Protection (NJDEP), the Commonwealth of Pennsylvania, Department of Environmental Protection (Department) and Lower Mount Bethel Energy, LLC have agreed to a settlement of the previous matter. PPL Generation, LLC and its subsidiaries, PPL Martins Creek, LLC and PPL Interstate Energy, LLC, have joined in the settlement to the extent that the terms are applicable to each.

   The Commonwealth, through the Department, issued Plan Approval No. 48-328-004 on October 29, 2001, to Lower Mount Bethel Energy, LLC for the construction of a 600 mW gas-fired, combined cycle electric generating turbine plant adjacent to the existing Martins Creek electric generating facility, operated by PPL Martins Creek, LLC, in Northampton County. NJDEP filed an appeal to the issuance of the Plan Approval on November 29, 2001.

   The parties have agreed to a settlement on October 10, 2003, the major provisions of which include:

   1.  Modification of the Lower Mount Bethel Energy, LLC Plan Approval and PPL Martins Creek Title V Operating Permit as follows:

   (a)  Beginning May 1, 2004, limit Units 1 and 2 (existing coal-fired units) SO₂ emissions to 3.3 pounds/mmBtu heat input on daily basis, not to be exceeded at any time and 3.1 pounds/mmBtu heat input on a daily basis, not to be exceeded more than 14 times per 12-month rolling period.

   (b)  By September 15, 2007, cease operations of existing boilers serving Units 1 and 2.

   (c)  Begging May 1, 2004, limit Units 3 and 4 (existing oil-fired units) fuel oil sulfur content to 0.70%.

   (d)  Beginning December 31, 2003, limit Auxiliary Boiler 4B to natural gas combustion only.

   (e)  By May 31, 2004, and by each May 31st thereafter, until shutdown, conduct annual source testing of Units 1 and 2 particulate emissions.

   (f)  Maintain Units 1 and 2 electrostatic precipitators in accordance with Department-approved maintenance plan and good engineering practice.

   2.  PPL Martins Creek shall donate and transfer to the Pennsylvania Environmental Council 70% of the SO₂ allowances, NOx budget allowances and NOx emission reduction credits made available from the aforementioned cessation of operations of existing boilers serving Units 1 and 2.

   3.  The Department shall expeditiously process applications for the changes of the Lower Mount Bethel Energy, LLC Plan Approval and PPL Martins Creek Title V Operating Permit.

   4.  The Department shall expeditiously make available to NJDEP relevant documentation to determine compliance with the Settlement Agreement by PPL Martins Creek, LLC and Lower Mount Bethel, LLC.

   5.  NJDEP shall take no action against PPL Martins Creek, LLC alleging violations for past violations at Units 1 and 2 of Federal Clean Air Act or Air Pollution Control Act new source review provisions.

   6.  NJDEP shall not appeal Department approvals of the PPL Martins Creek, LLC or Lower Mount Bethel Energy, LLC permit changes required by this Settlement Agreement or Department approval for the conversion of existing Martins Creek combustion turbines to gas consistent with existing Plan Approval No. 48-328-004 and the April 1, 2003, PPL Martins Creek, LLC application for the conversion.

   7.  Once PPL Generation, LLC and its subsidiaries have implemented the provisions of this Settlement Agreement, NJDEP shall submit a complete redesignation request to the Untied States EPA Region 2 to redesignate Warren County, NJ to attainment for the SO₂ NAAQS based on monitoring and other relevant information supporting a determination.

   Copies of the full agreement are in the hands of:

Howard Geduldig, Esq., Deputy Attorney General
Division of Law
R.J. Hughes Justice Complex, 7th Floor
25 Market Street
P. O. Box 093
Trenton, NJ 08625-0093
[phone]

Sean L. Robbins, Esq., Assistant Counsel
Department of Environmental Protection
2 Public Square
Wilkes-Barre, PA 18711-0790
[phone]

Terry R. Bossert, Esq.
Stevens & Lee, P.C.
P. O. Box 11670
Harrisburg, PA 17108-1670
[phone]

   Copies of the full agreement are also at the office of the Environmental Hearing Board, 2nd Floor, Rachel Carson State Office Building, 400 Market Street, Harrisburg, PA and may be reviewed by interested parties on request during normal business hours.

MICHAEL L. KRANCER,   
Chairperson

[Pa.B. Doc. No. 03-2201. Filed for public inspection November 14, 2003, 9:00 a.m.]