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Correspondence



July 14, 1998

Matt Mosier
City of Indianapolis
Environmental Resources Management Division
2700 South Belmont Avenue
Indianapolis, Indiana 46221-2097
Dear Mr. Mosier:

This letter is to confirm the final determination of the National Emission Standards for Hazardous Air Pollutants (NESHAP) issue concerning the Citizens Gas and Coke Utility (Citizens) permit to construct coke oven battery 2. Battery 2 is subject to 40 Code of Federal Regulations 63.300, the Coke Oven Battery NESHAP. At issue was whether or not Battery 2 could qualify as a brownfield battery, as defined by the NESHAP.

40 CFR 63.301 defines brownfield coke oven battery as "... a new coke oven battery that replaces an existing coke oven battery or batteries with no increase in the design capacity of the coke plant as of November 15, 1990". Also, design capacity is defined as "...the original design capacity of a coke oven battery, expressed in megagrams per year of furnace coke". Coke oven battery 2 will be replacing existing batteries E and H. According to the definition, the brownfield status is contingent upon there being no increase in the design capacity of the coke plant. Specifically for Citizens, this would mean that the sum of the design capacities of Batteries 1 and 2 cannot exceed the sum of the design capacities of Batteries E, H, and 1. For Batteries 1 and 2, the design capacity has been determined to be 1,016,788 tons of furnace coke produced per year. For Batteries E, H, and 1, the design capacity has been determined to be 951,567 tons of furnace coke produced per year. The design capacity of Batteries 1 and 2 exceeds the design capacity of Batteries E, H, and 1. However, Citizens has proposed to limit the production of furnace coke at Batteries 1 and 2 such that the original design capacity of the coke plant will not be exceeded, thus meeting the brownfield coke oven battery definition. At the time of our initial review, it was uncertain whether or not the regulations allowed for the use of limits on coke production in order for coke oven battery 2 to become a brownfield coke oven battery.

The Coke Oven Battery NESHAP was one of the few regulations created through the regulation negotiation process. Unlike other regulations created and promulgated solely by the United States Environmental Protection Agency, this particular NESHAP was developed with various stakeholders to ensure input from interested parties. After the production limit question arose, Region V discussed the issue with the stakeholders directly involved with the Coke Oven Battery NESHAP negotiations to ensure that the intent of the rule would be followed. The consensus was that limiting the design capacity of Batteries 1 and 2 through a production limit would meet the intent of the rule. Therefore, the permit should have a limit on the furnace coke produced by Battery 1 and 2 to 951,567 tons per year. In order for this limit to be practically enforceable, compliance with the furnace coke production limit should be demonstrated on a 365 day period, rolled daily, along with daily recordkeeping. This will ensure that Battery 2 will meet the definition of a brownfield battery. As a result of the brownfield status, Battery 2 shall be subject to the limits specified in 63.304(b)(4), provided that the notification requirements in the section have been fulfilled. Please note that since this was a unique situation, we do not believe that this approach is necessarily transferrable to other regulations.

I hope this information is useful. If you have any questions concerning this issue, please call Alvin Choi, of my staff, at (312) 886-3507.

Sincerely yours,

/s/


Cheryl L. Newton, Chief
Permits and Grants Section (IL/IN/OH)