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Four Corners Air Quality Task Force August 9, 2006

Four Corners Air Quality Task Force August 9, 2006. Desert Rock Energy Project . Sithe Global Representatives. Dirk Straussfeld, Executive VP, Sithe Global Power, LLC Nathan Plagens, Director, Sithe Global Power, LLC Gus Eghneim, VP-Environment, Health, & Safety,

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Four Corners Air Quality Task Force August 9, 2006

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  1. Four Corners Air Quality Task Force August 9, 2006 Desert Rock Energy Project

  2. Sithe Global Representatives • Dirk Straussfeld, Executive VP, Sithe Global Power, LLC • Nathan Plagens, Director, Sithe Global Power, LLC • Gus Eghneim, VP-Environment, Health, & Safety, Wood Group Power Operations Sithe Global Power is a privately held independent power development company developing power generation projects worldwide

  3. Scope of Presentation • Project Summary • Air Permitting Process • Pollution Control Technologies • Air Quality Impacts • Refer to http://www.epa.gov/region9/air/permit/desertrock/index.html

  4. Desert Rock Summary • An up to 1,500 MW coal fired electric power plant • Combined Power Plant and Coal Mine Located in Nenahnezad and Burnham Chapter Areas of the Navajo Nation, San Juan County, New Mexico • Fuel: Navajo Coal, from adjacent BHP Mine • Estimated cost $2.8 Billion • Construction to begin in 2007 with an online date in 2011 • Power sales through long-term (25-year) power sales agreements with regional utilities • Prices are fixed for a long term • Desert Rock will not trade electricity on the market

  5. Desert Rock - Steps to Air Permit Status today Final Air Permit Winter 2006 Draft Air Permit July 2006 Start of development of the Air permit September 2003 Air Permit Application February 2004 Public Comment Period 2007 2003 2004 2005 2006

  6. Air Permit • Strategy – Submit an application with the lowest emission rates for any pulverized coal fired power plant in the US to minimize impacts to the environment • Permit Application Submitted February 2004 • 98% Removal of SO2 • 99% Removal of Particulate Matter • 80% Removal of Mercury • 90% Removal of NOx • Application Deemed Complete in May 2004 • Extensive Modeling Completed per EPA, NN EPA, and DOE (NPS and FS) Requirements

  7. Air Permit - Mitigation • Desert Rock plans to accept the following mitigation measures • Permanently reduce SO2 emissions from existing area sources by 3,850 tons; or • Acquire regional SO2 allowances in the amount of 7,000 tons per year • Contribute $$ to regional environmental initiatives

  8. Air Permit - Status • Draft Air Permit posted on EPA Region 9 website (http://www.epa.gov/Region9/air/permit/desertrock/index.html) • EPA will post dates by August 15, 2006 for: • Public Workshop • Public Hearing

  9. Pollution Control TechnologyMajor Equipment • NOx – Lox NOx Burners and Selective Catalytic Reduction (SCR) • SO2 – Wet Limestone Flue Gas Desulfurisation and Low Sulfur Western Coal • CO – Good Combustion Practice (High Efficiency Supercritical Boilers) • VOC – Good Combustion Practice • PM – Fabric Filters • H2SO4 Mist – Hydrated Lime Injection • HF – Hydrated Lime Injection • PB – Fabric Filters

  10. Air Quality Impacts • Summary “EPA’s initial assessment is …….. that the proposed project will not violate any NAAQS of PSD increment..” (Ambient Air Quality Impact Report, NSR 4-1-3, AZP 04-01, Section VII, pg 35)

  11. Air Quality Impacts (2) • NOx & CO – “well below the significant impact level” • SO2 & PM10 – “The cumulative impact analysis Sithe submitted, however, demonstrated that the proposed Facility will not cause or contribute to an exceedance of the SO2 and PM10 NAAQS or PSD increments” • Lead – “The proposed facility will not exceed NAAQS” • “Finally, the proposed Facility will not have a significant impact on acid deposition at any Class I area, or on the aid neutralizing capacity of sensitive lakes.”

  12. Desert Rock: The Next Step To Near-Zero EmissionsFrom Coal-Fired Generating Plants Emissions from Coal-Fired Generating Plants 0.94 0.39 0.34 0.26 0.182 0.16 0.17 0.10 0.12 0.06 0.07 0.06 0.08 0.06 0.06 0.03 Near-Zero Clean Air Interstate Rule 2015 U.S. Average 2004* Clean Air Interstate Rule 2010 Existing IGCC (Permit Level) New Midwest Mine-mouth IGCC Projection FutureGen Goals New PRB Plant DREP 2004 Air Permit Application * Estimate Source: EPA’s Clean Air Markets database; EIA 2004 Annual Energy Outlook; GE Energy; SFA Pacific. ** Estimate Inserted by DPA for discussion purposes only in showing relationship of Desert Rock estimated emissions.

  13. SO 2 Emission will continue to decrease even with Desert Rock

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