Public comments are now being sought regarding a proposal to override a federal plan to reduce carbon emissions. If successful, the proposal would allow Arizona Public Service (APS) Co.’s Cholla Power Plant to continue to operate longer than it would be able to under the federal plan, but it would still be shut down by 2025.
APS, in conjunction with Arizona Department of Environmental Quality (ADEQ) officials, has created a “significant permit revision” for the Cholla plant in hopes that it will be accepted by the federal government. The previous plan created for the facility was rejected in December 2012.
“The permit revision requires APS to shut down coal-fired unit 2 boiler by April 1, 2016,” an ADEQ public notice states. “Additionally, the permittee (APS) will be required to discontinue burning coal in units 1, 3 and 4 by April 30, 2025. Thereafter, the permittee may convert any or all of units 1, 3, and 4 to pipeline-quality natural gas operation with a capacity factor not to exceed 20 percent.”
The federal regulations that are forcing the shutdown of Cholla and many other coal-fired power plants around the country allow each state to come up with its own implementation plan to meet air quality requirements. If the state does not submit a plan that is approved by federal regulators, the federal implementation plan will be enforced.
APS spokesman Steven Gotfried noted that, given the circumstances and the unavoidable effects of the new federal regulations, the revisions to the plan for Cholla Power Plant represent the best available option. Across the state, Arizona must reduce carbon emissions by 52 percent, the second highest amount among all states.
Under the current version of the rules, APS would have to spend at least another $350 million in upgrades to continue operating the plant using coal in the long-term. The company has already spent $350 million installing state-of-the-art emission controls in anticipation of stricter rules for emissions, but the federal regulations are far stricter than expected and appear to be specifically intended to shut down coal-fired plants.
Three of the units at Cholla could be converted to natural gas as an alternative to coal. According to former APS Vice President of Fossil Generation David Hansen, the final decision will come down to economics. If it is financially beneficial, they will be converted.
Arizona Department of Environmental Quality (ADEQ) Director Henry Darwin has previously stated that Arizona cannot meet the federal emission reduction requirements while coal-based plants are still in operation, but it also cannot retire enough plants and still produce enough energy to meet the federal deadlines.
A public hearing regarding the plan for Cholla Power Plant will be held in Holbrook at 6 p.m. on Monday, July 13, at the public works complex on Highway 77. An additional hearing will be held in Phoenix at 1:30 p.m. on Tuesday, July 14, in room 3175A-B at ADEQ headquarters, located at 1110 W. Washington St.
“ADEQ representatives will be available prior to, and after the public hearing for informal discussions about the permit and the state implementation plan (SIP) revisions,” the notice states.
Written comments may be submitted by mailing them to Balaji Vaidyanathan, Air Quality Permits Section Manager, ADEQ, 1110 W. Washington St., 3415A-1, Phoenix, Ariz., 85007; or by emailing them to bv1@azdeq.gov.
The proposed plan and supporting documents can be viewed online at http://azdeq.gov/cgi-bin/vertical.pl by clicking on the link on the “events and notices calendar.”
