COLLABORATION
AGREEMENT
This
Agreement is executed this 19th day of March, 2007, by and between the Kansas
City Power & Light Company (“KCPL”), the Sierra Club, and the Concerned
Citizens of Platte County, Inc. (“CCPC”) (collectively, the “Parties”), as set
forth below.
Witnesseth
WHEREAS,
KCPL owns and operates an electric generating plant known as the Iatan
Generating Station located in Platte County, Missouri;
WHEREAS,
KCPL applied for a Prevention of Significant Deterioration (“PSD”) Permit to
Construct to undertake work at the Iatan Generating Station, including work
on
the existing electrical utility steam generating unit (“Iatan Unit 1”) to
install new pollution control systems, to set a permit limit on the heat input
rate of Iatan Unit 1, and to construct at the Iatan Generating Station a second
pulverized coal-fired boiler and associated pollution control equipment (“Iatan
Unit 2”) (collectively the “Iatan Project”);
WHEREAS,
the Missouri Department of Natural Resources (“MDNR”) issued a PSD Permit to
Construct for the Iatan Project on January 31, 2006, Permit No. 012006-019
(the
“Iatan PSD Permit”);
WHEREAS,
on March 2, 2006, the Sierra Club filed a Complaint with the Missouri Air
Conservation Commission (“ACC”) to appeal from MDNR’s issuance of the Iatan PSD
Permit in ACC Appeal No. 06-0251, urging, among other things, that the MDNR
require more stringent emissions limits for certain emissions from Iatan Units
1
and 2;
WHEREAS,
the Parties also have disputes regarding ratemaking proceedings originally
filed
before the Missouri Public Service Commission (“MPSC”) and the Kansas
Corporation Commission (“KCC”) and now under appeal in the respective
jurisdictions;
WHEREAS,
on March 1, 2007, KCPL filed a federal declaratory judgment action against
the
Sierra Club in the United States District Court for the Western District of
Missouri;
WHEREAS,
KCPL has made an application to construct a combustion by-product landfill
to
support the on-going operation of the Iatan units after the installation of
the
new pollution control facilities, and such application is currently under review
by the MDNR;
WHEREAS,
KCPL also owns and operates an electric generating plant known as the La Cygne
Generating Station located in Linn County, Kansas, consisting of two units
(“La
Cygne Unit 1” and “La Cygne Unit 2”), and those units are the subject of
discussions between KCPL and the Kansas Department of Health and Environment
(“KDHE”) regarding the emissions limits to be set for those units for certain
emissions pursuant to the Best Available Retrofit Technology (“BART”)
regulations;
WHEREAS,
the Parties desire to enter into this Collaboration Agreement (“Agreement”) to
resolve all of these disputes or potential disputes such that the Iatan Project
may move forward
without
delay and the ratemaking proceedings may
proceed without the Sierra Club’s and CCPC’s further objections;
WHEREAS,
the Parties commit to work collaboratively, in a positive manner, with a goal
to
achieve a twenty percent reduction by 2020 of the 2006 carbon dioxide emissions
levels from KCPL’s overall operations;
WHEREAS,
KCPL desires to continue to build on its significant investments in energy
efficiency, renewable energy, and emissions control;
NOW,
THEREFORE, in consideration of the foregoing and of the mutual promises
contained in this Agreement and intending to be legally bound, the Parties
agree
as follows:
Agreements
Section
I.
Changes
to be Incorporated into Iatan PSD Permit.
The
Parties agree to proposed changes to the emissions limits for certain emissions
set forth in the Iatan PSD Permit, including nitrogen oxides (“NO
x
”),
sulfur dioxide (“
SO
2
”),
sulfuric acid mist (“SAM”), and opacity. The emissions limits will be
incorporated into an administrative amendment to the Iatan PSD Permit as set
forth in Exhibit 1 attached to this Agreement and incorporated herein by this
reference as if set forth fully herein. KCPL agrees not to seek to increase
the
limits for emissions of NO
x
,
SO
2,
SAM,
stack particulate matter, and opacity from the Iatan Generating Station set
forth in Exhibit 1 while this Agreement is in effect.
Section
II.
Emissions
Limits to be Included in Proposed Consent Agreement Between
KDHE
and
KCPL For the La Cygne Generating Station.
No
later
than December 31, 2007, KCPL will submit to KDHE proposed Unit 1 and Unit 2
average limits for certain emissions emitted at the La Cygne Generating Station
at limits lower than KCPL asserts would otherwise be required by presumptive
BART limits, including emissions limits for NO
x
,
SO
2
,
filterable Particulate Matter less than 10 microns in size (“filterable
PM
10
”)
and
total Particulate Matter less than 10 microns in size (“total PM
10
”)
to
become effective when compliance with BART regulations is first required. KCPL
agrees to support the inclusion of these limits in the Kansas State
Implementation Plan. KCPL agrees to use its best efforts to install pollution
control technologies that would allow KCPL to reduce its emissions of
NO
x
,
SO
2
,
filterable PM
10,
and
total
PM
10
from
La
Cygne Units 1 and 2 prior to the date that its compliance with the BART
regulations is required and at the latest by June 1, 2015. KCPL agrees to issue
the request(s) for proposals (RFP) for pollution control technologies to be
installed at the La Cygne Generating Station pursuant to this Agreement on
or
before December 31, 2008, and agrees that the RFP(s) will request that
construction commence on or before December 31, 2010. The emissions limits
that
KCPL agrees to seek in the proposed consent agreement are set forth in Exhibit
2
attached to this Agreement and incorporated herein by this reference as if
set
forth fully herein.
2
Section
III.
Collaboration
on Carbon Dioxide Offsets, Energy Efficiency and Community
Investment.
KCPL
will
seek regulatory approval from the MPSC and/or the KCC, to the extent necessary,
to undertake Renewable Energy, Energy Efficiency, and other projects that the
Parties have estimated will offset the annual carbon dioxide (“CO
2
”)
emissions generated from KCPL’s Iatan Unit 2 of 6,012,645 tons as set forth in
Exhibit 3, the “Settlement Sheet CO
2
Calculations” which is attached to and incorporated by this reference in this
Agreement as if set forth fully herein. The Parties’ particular agreements
regarding CO
2
emissions are set forth below:
a.
Renewable
Energy
.
To
the
extent KCPL obtains the regulatory approval(s) that it will seek from the MPSC
and/or the KCC, KCPL hereby commits to add 100 additional megawatts (MW)
capacity of wind-generated electric power by December 31, 2010 and to add 300
additional MW capacity of wind-generated electric power by December 31, 2012.
The Sierra Club and CCPC agree that they will support regulatory approval of
these projects but to the extent that such projects involve components beyond
wind-generated electric power, each of them reserves their right to object
to
such other components. KCPL further agrees to exert its best efforts to add
the
total 400 MW capacity of wind-generated electric power in the earliest
reasonable timeframe, including filing requests for approval in such a manner
that the regulatory agency will have adequate time to make informed decisions
on
such requests;
b.
Energy
Efficiency
.
To
the
extent that KCPL obtains the regulatory approval(s) and appropriate ratemaking
treatment(s) that it will seek from the MPSC and/or the KCC, KCPL hereby commits
to undertake by December 31, 2010 additional Energy Efficiency projects designed
to reduce annual electricity demand by an additional 100 MW, and to undertake
additional Energy Efficiency projects designed to reduce annual electricity
demand by an additional 200 MW by December 31, 2012 for a total of 300 MW demand
reductions. KCPL further agrees to exert its best efforts to add the total
300
MW of energy efficiency in the earliest reasonable timeframe, including filing
its requests for approval in such a manner that the regulatory agency will
have
adequate time to make informed decisions on such requests;
c.
Additional
Carbon Dioxide Offsets
.
In
addition, KCPL will undertake projects that would
offset
CO
2
emissions
generated
from KCPL’s Iatan Unit 2
by
an
additional 711,159 tons annually (as calculated in Exhibit 3) by December 31,
2012. The Parties hereby agree that the offsets required by this subparagraph
c
must be achieved by the following projects, by other projects that are mutually
agreed upon by the Parties, or by a combination thereof:
1.
Additional
Renewable Energy or Energy Efficiency projects; or
2.
KCPL’s
closing, de-rating, or re-powering of, or efficiency improvements at any of
its
electric generating units. For purposes of calculating the CO
2
offsets
that would be achieved from such projects under this subparagraph c, the Parties
hereby agree that such offsets will be calculated based upon any such unit’s
historical use during the most recent representative three years;
d.
Net
Metering Tariff, Montrose Study, and Legislative Collaboration.
3
1.
KCPL
agrees to consult with Sierra Club and CCPC in developing a net metering tariff.
KCPL agrees to file the net metering tariff in Missouri and Kansas within 6
months after this Agreement is executed by the Parties. This Agreement does
not
constrain Sierra Club and/or CCPC from intervening in any administrative
proceeding related to net metering;
2.
KCPL
agrees to conduct a study of KCPL’s Montrose Generating Station (“Montrose
Study”) with Sierra Club and CCPC participation to assess potential future use,
including without limitation, retiring, re-powering, and upgrading the units.
KCPL will host at least two meetings to solicit Sierra Club and CCPC
participation, including as part of the scoping for this study and when a draft
report is prepared. KCPL agrees to conclude the Montrose Study within one year
after this Agreement is executed by the Parties;
3.
KCPL,
the
Sierra Club, and CCPC agree to collaborate on legislation and/or regulatory
initiatives in both Kansas and Missouri to encourage the reduction of emissions,
including carbon dioxide, through, among other things, energy efficiency
building standards, appliance standards, and other incentives for energy
efficiency investments by utilities;
e.
Community
Investment.
KCPL
agrees to grant $180,000 to implement the recommendations of the Kansas City,
Missouri Climate Protection Plan administered by the City of Kansas City,
Missouri regarding projects in the Kansas City area that employ energy
efficiency, renewables, emission control technology, or carbon reduction
technology. The projects to be funded by this grant are separate from those
required to be undertaken by subsections a, b, and c of this Section. In
addition, KCPL agrees to grant $60,000 to support ozone and PM monitoring within
the greater Kansas City region, to be administered by the Mid-America Regional
Council; agrees to grant $100,000 for City of Weston drinking water
infrastructure upgrades, payable within 10 days from the date the last dismissal
required in Section IV of this Agreement becomes effective, to the City of
Weston, Attn: Mayor Howard Hellebuyck, City Hall, 300 Main, Weston, MO 64098;
and agrees to fund a new left turn lane at Highway 45 and Iatan
Road.
Section
IV.
Dismissals
and Releases of Legal Actions or Claims.
a.
Within
ten (10) days of execution of this Agreement by all Parties, the Sierra Club,
KCPL and MDNR will file a Joint Stipulation of Dismissal with Prejudice that
dismisses the Sierra Club’s appeal of the Iatan PSD Permit with prejudice in
substantially the form set forth in Exhibit 4 and attached to this Agreement
and
incorporated herein by this reference as if set forth fully herein. The Sierra
Club and the CCPC hereby release any objections or claims they may have
regarding any of the emissions limits for the Iatan Generating Station as of
the
date of this Agreement.
The
Sierra Club and CCPC further agree they will not file any opposition to any
amendments to the Iatan PSD Permit pertaining to the current modification of
Iatan Unit 1 and construction of Iatan Unit 2, specifically including the
changes proposed in the September 11, 2006 letter from Paul Ling of KCPL to
James Kavanaugh of MDNR, a copy of which is attached hereto as Exhibit 5, and
any changes not resulting in any increase in any pollutant emissions above
the
Iatan PSD Permit emissions limits, as modified pursuant to this
Agreement;
b.
Sierra
Club will dismiss with prejudice its appeal from the judgment in
In
the
Matter of the Future Supply, Delivery and Pricing of the Electric Service
Provided by Kansas City Power/Sierra Club v. Kansas Corporation Comm’n and
Kansas City Power & Light Company
,
4
District Court
of
Shawnee County, KS, Case No.: 05C1348, on appeal as
Sierra
Club v. The Kansas Corporation Comm’n
,
Kan.
Ct. App. No. 06-96738-A (filed June 14, 2006) within ten (10) days of execution
of this Agreement by all Parties;
c.
KCPL,
the
Sierra Club, and the CCPC hereby agree that they will file a joint motion for
remand of the appeal in
State
ex rel., Sierra Club v. Missouri Public Service Com'n
,
Missouri Court of Appeals Appeal No. WD 66893 without seeking further appellate
review and that if the Parties’ joint motion for remand is granted, the Sierra
Club and the CCPC further agree that they will not oppose MPSC approval of
the
plan originally approved in MPSC Case Number EO-2005-0329 within twenty (20)
days of execution of this Agreement by all Parties (the plan will be re-filed
with an appropriate pleading). I
f
the
joint motion for remand is denied, the Sierra Club and CCPC agree to seek
dismissal of the appeal and agree that they will not, in any subsequent case,
file any opposition to MPSC approval of the plan originally approved in MPSC
Case Number EO-2005-0329;
d.
KCPL
hereby agrees to dismiss with prejudice its complaint in
Kansas
City Power & Light Company v. Sierra Club
,
United
States District Court for the Western District of Missouri Case No.:
07-0159-CV-W-GAF (filed March 1, 2007) within ten (10) days of execution of
this
Agreement by all Parties;
e.
The
Sierra Club and CCPC hereby agree to release forever each and every claim that
they or either of them have asserted or could have asserted as of the date
of
the execution of this Agreement in the actions or appeals referenced in this
Agreement or arising from KCPL’s operation of the Iatan Generating Station or
the La Cygne Generating Station. This release is intended to be construed as
broadly as legally permissible and expressly includes, without limitation,
the
release of any and all claims or allegations that the Sierra Club and/or CCPC
have asserted or could have asserted as of the date of the execution of this
Agreement alleging that KCPL violated any provision of the Clean Air Act, or
any
of the state regulations implementing any provision of the Clean Air
Act,
1
by any
action that KCPL has allegedly taken or has allegedly failed to undertake.
This
release also includes, without limitation, the release of any
claims
the Sierra Club or CCPC may have regarding any emissions limits at the La Cygne
Generating Station, including any limits that would be set by application of
BART regulations and associated permitting. Except as set forth above,
t
his
release does not extend to claims that may first arise after the date of the
execution of this Agreement pertaining to KCPL’s operation of the Iatan
Generation Station or the La Cygne Generating Station or any future permits
applied for by or issued to KCPL regarding such facilities;
f.
Without
waiving any future claims relating to any additional generating units that
KCPL
may propose in the future, t
he
Sierra
Club and CCPC agree not to file any legal challenge to the Certificate of
Convenience and Necessity (“CCN”) issued by the MPSC on November 14, 1973 in
Case No. 17,895 that KCPL asserts approved, inter alia, Iatan Units 1 and 2
(but
Sierra Club expressly reserves its right to claim that the CCN does not
authorize additional generating units
______________________________________
1
Section
IV(e)’s reference to “any provision of the Clean Air Act, or any of the state
regulations implementing any provision of the Clean Air Act” is intended to
include and does include, without limitation, the PSD program, the New Source
Review (“NSR”) program, and New Source Performance Standards (“NSPS”) and all
potentially applicable state regulations that implement any provision of
the
Clean Air Act.
5
beyond Iatan Units 1 and 2); or the permits
previously issued for the Iatan Project, including, without limitation, the
permit issued to KCPL by the US Army Corps of Engineers on June 15, 2006
pursuant to Section 10 of the Rivers and Harbors Act of 1899, the permit
issued
to KCPL by the US Army Corps of Engineers on June 15, 2006 pursuant to Section
404 of the Clean Water Act, and the permit issued to KCPL by MDNR on March
8,
2006 pursuant to Section 401 of the Clean Water Act; or the Environmental
Assessment (EA) and the associated Finding of No Significant Impact (FONSI)
issued by the US Army Corps of Engineers on June 12, 2006; or documents or
determinations referenced in these permits or EA and FONSI;
g.
The
Parties commit to work collaboratively in good faith to address and resolve
any
issues concerning the Utility Waste Landfill Construction Permit Application
for
KCPL, MDNR Job No. NJ06GPLF, Iatan Generation Station, Platte County, Missouri
received as a complete application August 7, 2006.
Section
V.
Interrelationship
with Experimental Regulatory Plan.
The
Parties agree that the commitments contained in this Agreement are not intended
to change or modify the terms of the Experimental Regulatory Plan originally
approved by the MPSC in Case No. EO-2005-0329 and approved by the KCC in Docket
No
.
04-KCPE-1025-GIE
.
The
Experimental Regulatory Plan, for the most part, expires on June 1,
2010.
Section
VI.
Miscellaneous.
a.
Reports
.
Annually,
within thirty (30) days of the anniversary of the execution of this Agreement
by
all Parties, KCPL will provide to the other parties a report on the progress
made to date in implementing the terms of this Agreement;
b.
Destruction
of Confidential Information
.
The
Parties hereby agree that for purposes of the obligations in paragraph 10 of
the
Protective Order entered in ACC Appeal No. 06-0251 by the Administrative Hearing
Commission on August 4, 2006 (the "Protective Order"), the date of "the final
determination of the present appeal" shall be deemed to be the same date the
last of these Parties executes this Agreement so that the Sierra Club and the
persons to whom it provided access to confidential information shall have 60
days from that date to return or destroy confidential information as provided
in
that Protective Order, and KCPL shall have 60 days from that date to return
or
destroy all copies of Dr. J. Phyllis Fox's "personal library" which is the
subject of an agreed addendum to that Protective Order. The Parties further
expressly agree that all transcripts of depositions taken in ACC Appeal No.
06-0251, and all exhibits introduced therein, shall be deemed to include
"Confidential Information" within the meaning of the Protective Order,
notwithstanding the provisions for so designating such materials in paragraph
8
of the Protective Order, so that the obligations in paragraph 10 shall apply
to
all such transcripts and exhibits;
c.
Technical
Costs
.
KCPL
agrees to pay $86,000 to the Sierra Club and CCPC for technical
analysis;
d.
Remedies
.
The
Parties agree that in no instance will any Party or individual be responsible
or
liable for monetary damages as a result of any alleged breach or breach of
this
Agreement. The Parties acknowledge and agree that damages are not available
as a
remedy in the
6
event the obligations of this Agreement are
breached.
The Parties agree that damages would not be an adequate remedy for noncompliance
with this Agreement, and that no adequate remedy at law exists for noncompliance
with the terms of this Agreement. Accordingly, the Parties expressly agree
that
an award of equitable relief would be an appropriate remedy for a breach
of the
obligations under this Agreement, provided the reviewing court has followed
standard procedures for issuing injunctive relief. The Parties also agree
that
should they commence any legal action to enforce this Agreement that they
will
not seek any remedies except specific performance;
e.
No
Relationship
.
This
Agreement does not create any legal relationship between or among the Parties.
Thus, each Party is responsible only for its own actions and this Agreement
is
not intended to and does not in any manner create rights, duties, liabilities,
or legal consequences for the Parties except as expressly provided herein.
No
joint venture, agency, partnership, or other fiduciary relationship will be
deemed to exist or arise between or among the Parties as a result of this
Agreement;
f.
Force
Majeure
.
Neither
Party will be deemed to have breached this Agreement or trigger a right to
terminate this Agreement for any delay or default in performing hereunder if
such delay or default is caused by conditions beyond its control including,
but
not limited to, natural disasters, wars, insurrections, and/or any other cause
beyond the reasonable control of the Party whose performance is
affected;
g.
Notice
.
Unless
otherwise provided herein, whenever notifications, submissions, or
communications are required by this Agreement, they will be made in writing
and
addressed as follows:
Bruce
Nilles
Sierra
Club Midwest Clean Energy Campaign
122
W.
Washington Avenue, Suite 830
Madison,
WI 53703
bruce.nilles@sierraclub.org
Yvonne
Cather, Chapter Chair
Sierra
Club - Kansas Chapter
2935
S.
Seneca
Wichita,
KS 67217-2863
yvonne@cathergriffithlaw.com
Melissa
Hope
Sierra
Club - Missouri Chapter
7164
Manchester Avenue
Maplewood,
MO 63143
melissa.hope@sierraclub.org
7
Susan
K.
Brown, Chairperson
Concerned
Citizens of Platte County, Inc.
14
Mill
Street
Dearborn,
MO 64439
s.brown@netzero.net
Paul
M.
Ling
Environmental
Manager
Kansas
City Power & Light Company
1201
Walnut
Kansas
City, MO 64106
paul.ling@kcpl.com
with
a
copy to
Michael
D. Hockley
Spencer
Fane Britt & Browne LLP
1000
Walnut, Suite
1400
Kansas
City, MO
64106
mhockley@spencerfane.com
All
notifications, communications or submissions made pursuant to this Agreement
will be sent in electronic (pdf) format unless the size or other characteristics
of the materials requires the submission of a hard copy. If hard copies are
submitted, they will be submitted by (a) two-day overnight, certified or
registered mail that will be deemed submitted on the date they are postmarked,
or (b) sent by overnight delivery service that will be deemed submitted on
the
date they are delivered to the delivery service. All notifications,
communications, and submissions made by electronic means will be deemed
submitted on the date that the transmitting Party receives written
acknowledgment of receipt of such transmission.
h.
Term
.
The
provisions of this Agreement will expire December 31, 2015. If either the Sierra
Club or CCPC is, at that time, challenging KCPL’s failure to comply with one or
more of the terms of this Agreement, those terms and any related terms shall
not
expire at that time.
i.
Termination
.
This
Agreement may be terminated at any time upon mutual written agreement of the
Parties.
j.
Modification
.
This
Agreement may be amended or modified in writing by mutual agreement of the
Parties.
k.
Choice
of Law
.
This
Agreement will be construed and governed in all respects by the laws of the
State of Missouri, without regard to the principles of conflicts of law. Any
dispute arising over the terms and conditions contained herein will be resolved
in a court of competent jurisdiction located in Jackson County,
Missouri.
l.
Dispute
Resolution
.
Prior
to
commencing any legal action to enforce this Agreement the Parties agree to:
(a)
notify the allegedly offending Party in writing, and (b) wait at
8
least thirty days (30) and during that period
undertake
all reasonable efforts to resolve the matter short of litigation.
m.
Successors
Bound
.
This
Agreement will be binding upon the successors and assigns of KCPL, upon the
successors and assigns of the Sierra Club, and upon the successors and assigns
of the CCPC.
n.
Authority
.
Each
of
the signatories to this Agreement affirms that he or she is authorized to enter
into the terms and conditions of this Agreement. Each party hereto may validly
execute this document by facsimile signature or in counterparts, each of which
will constitute an original and all of which constitute one and the same
Agreement.
IN
WITNESS WHEREOF, this Agreement has been executed by Kansas City Power &
Light Company, the Sierra Club, and the Concerned Citizens of Platte County
and
is effective as of March __, 2007.
|
AGREED
ON BEHALF OF KANSAS
CITY
POWER & LIGHT COMPANY BY:
___
//s// William G. Riggins
_______________
Name: William
G. Riggins
Title:
Vice President & General Counsel
Date:
__
3/19/07
____________________________
|
AGREED
ON BEHALF OF SIERRA CLUB -BY:
_____
//s// Melissa K. Hope
____________
Name:
Melissa K. Hope
Title:
Missouri Chapter Development Assoc.
Date:___
3-19-07
______________
|
|
AGREED
ON BEHALF OF CONCERNED CITIZENS OF PLATTE COUNTY BY:
____
//s// Susan K. Brown
________________
Name:
Susan
K. Brown
Title:
Chairperson
Date:
____
3/20/07
__________________________
|
_____
//s// Yvonne A. Cather
__________
Name:
Yvonne A. Cather
Title:
Chapter Chair
Sierra
Club Kansas Chapter
Date:___
3-19-07
__________________
|
9
Exhibit
1
Iatan
Generating Station Modified Permit Limits
A.
Iatan
Unit 1 - Modified Permit Limits
The
Parties agree that the sections of the Iatan PSD Permit set forth below will
be
replaced with the following language:
2.E.1.
Nitrogen
Oxides (NO
x
)
- 0.09
lbs/mmBTU, based on a 30 day rolling average.
2.E.2.
Sulfur
Dioxide (SO
2
)
- 0.07
lbs/mmBTU, based on a 30 day rolling average.
2.E.8.
Opacity
-
15% (6-minute average) excluding periods of start-up and shut-down, except
for
one 6-minute period per hour of not more than 27 percent.
2.E.12.
Sulfuric
Acid Mist (H
2
SO
4
)
- KCPL
shall submit a BACT analysis for sulfuric acid mist. Such analysis will include
a proposed BACT limit no higher than 5.5x10E-3 lbs/mmBTU. The MDNR
will
conduct a BACT
analysis and determine the final emissions limit.
2
B.
Iatan
Unit 2 - Modified Permit Limits
The
Parties agree that the sections of the Iatan PSD Permit set forth below will
be
replaced with the following language:
3.E.1.
Nitrogen
Oxides (NO
x
)
- 0.07
lbs/mmBTU, based on a 30 day rolling average.
3.E.2.
Sulfur
Dioxide (SO
2
)
- 0.06
lbs/mmBTU, based on a 30 day rolling average.
3.E.8.
Opacity
-
15% (6-minute average) excluding periods of start-up and shut-down, except
for
one 6-minute period per hour of not more than 27 percent.
3.E.12.
Sulfuric
Acid Mist (H
2
SO
4
)
- KCPL
shall submit a BACT analysis for sulfuric acid mist. Such analysis will include
a proposed BACT limit no higher than 5.5x10E-3 lbs/mmBTU.
The
MDNR will conduct
a BACT analysis and determine the final emissions limit.
2
22.
Delete.
___________________________________
2
Sierra
Club and CCPC agree not to challenge MDNR’s BACT determination for sulfuric acid
mist, provided it is no higher than
5.5x10E-3
lbs/mmBTU.
Exhibit
2
La
Cygne Unit 1 and La Cygne Unit 2 Proposed Emission Limits
A.
La Cygne Unit 1 and La Cygne Unit 2
KCPL
shall submit to KDHE a proposed consent agreement between KCPL and the Kansas
Department of Health and Environment (“KDHE”) that will include an averaged
emission limit for La Cygne Unit 1 and La Cygne Unit 2
to
become
effective when compliance with BART regulations is first required (but in no
event later than June 1, 2015) and
that
does
not exceed the following emissions limits for the emissions listed
below:
Nitrogen
Oxides (NO
x
)
0.13
lbs/mmBTU, based on 30-day rolling average, excluding periods of start up and
shut-down.
Sulfur
Dioxide (SO
2
)
0.1
lbs/mmBTU, based on 30-day rolling average, excluding periods of start up and
shut-down.
PM
10
filterable
0.015
lbs/mmBTU, based on either an average of 3 one-hour stack tests annually, or
KCPL
will
comply with KDHE approved Continuous Assurance Monitoring (“CAM”)
plan
for
PM
10
filterable
before
baghouses go online for La Cygne Unit 1 and La Cygne Unit 2, at the discretion
of KCPL.
PM
10
total
0.024
lbs/mmBTU, based on either an average of 3 one-hour stack tests
annually
,
using
Test Method 202 as modified to remove artifact bias subject to KDHE
approval,
or
KCPL
will
comply with KDHE approved CAM plan for
PM
10
total
before
baghouses go online for La Cygne Unit 1 and La Cygne Unit 2, at the discretion
of KCPL.
Exhibit
3
SETTLEMENT
SHEET CO
2
CALCULATIONS
CO
2
Offsets
|
Description
|
MW
|
Capacity
Factor
|
Annual
Operating Hours
|
Coal
Fleet Average (lb/MW-hour)
|
lb/ton
conversion
|
CO
2
Offset
(tons)
|
|
Spearville
Wind
|
100.5
|
0.35
|
8760
|
2200
|
2000
|
338,946
|
|
Additional
Wind
|
400
|
0.35
|
8760
|
2200
|
2000
|
1,349,040
|
|
Existing
Energy Efficiency
|
75
|
1
|
8760
|
2200
|
2000
|
722,700
|
|
Additional
Energy Efficiency
|
300
|
1
|
8760
|
2200
|
2000
|
2,890,800
|
|
Additional
CO
2
Reduction
|
|
|
|
|
|
711,159
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
6,012,645
|
CO
2
Generation
|
Description
|
MW
|
Capacity
Factor
|
Annual
Operating Hours
|
Supercritical
Boiler Average
(lb/MW-hour)
|
lb/ton
conversion
|
CO
2
Generated
(tons)
|
|
Iatan
Unit 2
|
850
|
0.85
|
8760
|
1900
|
2000
|
6,012,645
|
Exhibit
4
|
BEFORE
THE MISSOURI AIR CONSERVATION COMMISSION and
MISSOURI
ADMINISTRATIVE HEARING COMMISSION
|
|
In
Re:
PSD
Construction Permit Issued to Great Plains Energy
Project
No. 2005-05-062
Permit
No. 012006-019
Kansas
City Power & Light Company - Iatan Generating Station
|
|
|
SIERRA
CLUB,
Petitioner,
v.
MISSOURI
DEPARTMENT OF NATURAL RESOURCES,
Respondent,
KANSAS
CITY POWER & LIGHT COMPANY,
Intervenor.
|
)
)
)
)
)
)
)
)
)
)
)
)
)
)
|
ACC
Appeal No. 06-0251
|
|
STIPULATION
OF DISMISSAL
|
Petitioner
Sierra Club, by and through its attorneys, Respondent Missouri Department of
Natural Resources (“MDNR”), by and through its attorneys, and Intervenor Kansas
City Power & Light Company (“KCPL”), by and through its attorneys, hereby
enter into the following Stipulation:
1.
On
March
2, 2006, Petitioner filed a Complaint before the Missouri Air Conservation
Commission and Missouri Administrative Hearing Commission (“AHC”). The Complaint
alleged nine counts challenging aspects of the decision of respondent MDNR
to
issue PSD Construction Permit No. 012006-019 to intervenor KCPL with respect
to
KCPL’s Iatan Generating Station (“the Permit”).
2.
On
February 19, 2007, petitioner filed a Notice of Dismissal of Count III of the
Complaint.
3.
On
February 27, 2007 and March 1, 2007, all parties jointly filed Stipulations
of
Dismissal of Counts I, II, and IV of the Complaint.
4.
On
or
about March 19, 2007, Sierra Club and KCPL entered into a Collaboration
Agreement resolving their current disputes concerning the Iatan Generating
Station. In the Collaboration Agreement, Sierra Club and KCPL agreed that the
Permit limits for certain pollutants should be reduced, as set forth in Exhibit
1 attached hereto.
5.
MDNR
agrees to revise the Permit to incorporate the lower emissions limits indicated
in Exhibit 1 attached hereto.
6.
Accordingly,
Sierra Club dismisses its Complaint, with prejudice, effective the date on
which
MDNR issues a revised Permit incorporating the emissions limits indicated on
Exhibit 1 attached hereto. MDNR will send the revised Permit to Sierra Club
and
KCPL, and Sierra Club will notify the Administrative Hearing Commission of
the
effective date of this Stipulation of Dismissal.
7.
Each
undersigned representative of Petitioner, Respondent, and Intervenor certifies
that she or he is authorized to enter into this Stipulation and to execute
and
legally bind such parties to this document.
ENTERED
INTO THIS ____ DAY OF MARCH, 2007.
________________________________________
__________
Maxine
Lipeles
Date
Director,
Interdisciplinary Environmental Clinic
Washington
University in St. Louis
Campus
Box 1120
One
Brookings Drive
St.
Louis, MO 63130-4899
ATTORNEY
FOR PETITIONER SIERRA CLUB
________________________________________
__________
Shelley
A. Woods
Date
Assistant
Attorney General
Missouri
Attorney General’s Office
P.O.
Box
899
Jefferson
City, MO 65102
ATTORNEY
FOR RESPONDENT MISSOURI
DEPARTMENT
OF NATURAL RESOURCES
________________________________________
__________
Michael
D. Hockley
Date
Barry
L.
Pickens
Bryant
T.
Lamer
Sara
S.
Hertz
1000
Walnut St., Suite 1400
Kansas
City, MO 64106
ATTORNEYS
FOR INTERVENOR KANSAS CITY
POWER
& LIGHT COMPANY
Exhibit
1
Iatan
Generating Station Modified Permit Limits
A.
Iatan
Unit 1 - Modified Permit Limits
The
Parties agree that the sections of the Iatan PSD Permit set forth below will
be
replaced with the following language:
2.E.1.
Nitrogen
Oxides (NOx) - 0.09 lbs/mmBTU, based on a 30 day rolling average.
2.E.2.
Sulfur
Dioxide (SO
2
)
- 0.07
lbs/mmBTU, based on a 30 day rolling average.
2.E.8.
Opacity
-
15% (6-minute average) excluding periods of start-up and shut-down, except
for
one 6-minute period per hour of not more than 27 percent.
2.E.12.
Sulfuric
Acid Mist (H
2
SO
4
)
- KCPL
shall submit a BACT analysis for sulfuric acid mist. Such analysis will include
a proposed BACT limit no higher than 5.5x10E-3 lbs/mmBTU.
The
MDNR will conduct
a BACT analysis and determine the final emissions limit.
B.
Iatan
Unit 2 - Modified Permit Limits
The
Parties agree that the sections of the Iatan PSD Permit set forth below will
be
replaced with the following language:
3.E.1.
Nitrogen
Oxides (NOx) - 0.07 lbs/mmBTU, based on a 30 day rolling average.
3.E.2.
Sulfur
Dioxide (SO
2
)
- 0.06
lbs/mmBTU, based on a 30 day rolling
average.
3.E.8.
Opacity
-
15% (6-minute average) excluding periods of start-up and shut-down, except
for
one 6-minute period per hour of not more than 27 percent.
3.E.12.
Sulfuric
Acid Mist (H
2
SO
4
)
- KCPL
shall submit a BACT analysis for sulfuric acid mist. Such analysis will include
a proposed BACT limit no higher than 5.5x10E-3 lbs/mmBTU.
The
MDNR will conduct
a BACT analysis and determine the final emissions limit.
3
22
Delete.
3
Sierra
Club and CCPC agree not to challenge MDNR’s BACT determination for sulfuric acid
mist, provided it is no higher than
5.5x10E-3
lbs/mmBTU.
[KCP&L
Letterhead]
Exhibit
5
September
11, 2006 .
W.
James L.
Kavanaugh, Director
Missouri
Department of Natural Resources
Air
Pollution Control Program
PO
Box
176
Jefferson
City, MO 65102-0176
Re:
Kansas
City
Power
&
Light
Company
latan Generating Station Permit to Construct Permit Number:
012006-019
Dear
Mr.
Kavanaugh:
The
Missouri Department of Nature Resources (MDNR) issued the Iatan Generating
Station
Permit
to Construct (Permit No. 012006-019) on January 31, 2006 to Kansas City Power
& Light Company (KCPL). The Permit was issued as a result of KCPL's Permit
Application of May 2005. The Permit Application indicated that KCPL desired
to
increase the heat input of the Unit 1 boiler but that
no
physical
modifications would be required because the Unit 1 boiler is already equipped
with low NOx burners. The Permit issued indicated that KCPL intends to modify
the Unit 1 boiler to increase the heat input rate and upgrade the emissions
control system.
Recently,
detailed design and analysis has indicated that KCPL may desire to make
modifications to the Unit 1 boiler. The studies and analysis suggest that
the
existing low NOx burners could be replaced with the latest low NOx burner
technology, over fire air or potentially burners in a revised arrangement.
This
would allow better burner controls to reduce emissions as
part
of
the emission control upgrades for the Unit 1 boiler and would be good combustion
practices.
In
addition, additional economizer surface area may be required to optimize
flue
gas temperatures for the proper and most efficient operation of the emissions
control equipment.
In
addition, detailed design and analysis has indicated that KCPL may desire
to
make modification to the Unit 1 turbine. The studies and analysis suggest
that
efficiency improvements can be made by reblading the high-pressure section
of
the turbine. These turbine efficiency improvements will be made concurrently
with the addition of the emission control equipment to the Unit 1 boiler
and in
compliance with the Permit to Construct.
The
detailed design and analysis for these potential changes to the boiler and
turbine is ongoing but will be designed to be in compliance with the emissions
limits indicated in the Permit
to
Construct.
MDNR
in
the Permit to Construct classified the installation of Unit 2 and the
modifications of Unit 1 as a major modification requiring PSD review for
certain
emissions. KCPL interprets that the upgrade of the Unit 1 low NOx burners,
over
fire air, revised burner arrangement, economizer surface area increase, and
the
Unit 1 turbine efficiency improvements as part of the major modification
previously reviewed and approved by MDNR and generally indicated as such
in
the
W.
James L.
Kavanaugh
September
11, 2006
Permit
to
Construct. KCPL is currently reviewing the feasibility of implementing each
of
these projects, which can be viewed independently from one another.
Before
proceeding further, however, KCPL would like written confirmation from
MDNR
that
KCPL's interpretation is consistent with MDNR's interpretation. Since the
projects can be viewed and implemented independently, please verify MDNR's
interpretation for each specific project and in total. KCPL would be willing
to
formally document this understanding later in a pemut amendment.
Because
of the lead time necessary to implement. these projects in approximately
the
2008 time frame, it is vital that an interpretation is timely
received.
If
you
should have any questions concerning these comments, please contact me at
816-556-2899.
Sincerely,
//s//
Paul M.
Ling
Paul
M.
Ling
KCPL
Acting
Manager of
Environmental Services