Duke Energy Application for FDF Variance
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139 E. Fourth Street, EM740 Cincinnati, Ohio 45202 April 27, 2016 VIA OVERNIGHT DELIVERY Mr. Robert Kaplan, Acting Regional Administrator Region 5 U.S. Environmental Protection Agency 77 W. Jackson Blvd. Chicago, IL 60604 Ms. Carol S. Comer, Commissioner Indiana Department of Environmental Management Indiana Government Center North, 13th Floor 100 N. Senate Avenue Indianapolis, IN 46204 RE: Fundamentalty Different Factors Variance Application for Duke Energy Indiana, LLC - EdWardsport IGCC Station (NPDES Permit IN0002780) Dear Mr. Kaplan and Ms. Comer. Enclosed, please find an application by Duke Energy Indiana, LLC for a fundamentally different factors variance from recently adopted revisions to the Steam Electric EHluenl Limitation Guidelines that are applicable to gasification wastewater generated at the Edwardsport IGCC Station. This Application is being submitted pursuant to the authority granted by Section 301 (n) of the Clean Water Act, 33 U.S.C. § 1311 {n). Please contact me (513-287-2268 or [email protected]) if you have any questions about the enclosed materials. Sincerely, p~~t~ Duke Energy - Environmental Services Enclosure (:li,ek 011t: Apc!26'",,0I~ •...,.,.,....,,bm 0000- HHl*l o , I\lt. Ut INDIAl'IA Cftrck~•m~n •=UICA1l l•~lc:• N• Mrr lnvel« O.reo Vo~•rfD c,1uA•o11n1 DbcCMtnlS T•l:c tt Latt0.11tt PalcJAnH1uu M?-2011 A~r1Wl016 101!6677 lllOO 000 0.00 50.00 fEl:fOR f,O~ VARIAN('£AP1'llC'IITl0H ©@fP'W 'tool TeuJ Ttttl Toto! Clittk N•<ttblN 0•1< Crf.lnAIMWftf 0tft&41•U L.ate- Chara.n P1WAmo•ot IIIOOl~IOC'I o\p,-12&2016 $30.00 so-oo $0.00 s,P.oo ~~DUKE ~ -ENERGY. Ctr,or~ Acciounta Paye!, · ST?S8 -400 So~U! Tl')'<)n Streit C~e, NC 2'.8285 . , ' Pay ..,.. .,. ... Order Of STAT£ OF INDIANA DEPT. OF ENVIRONMENTAL MGMT. CASHIERS OFFICE I00NS~A'fEAVENUE lndfonapolis. IN 46204 APPLICATION OF DUKE ENERGY INDIANA, LLC FOR A FUNDAMENTALLY DIFFERENT FACTOR VARIANCE April 27, 2016 APPLICATION OF DUKE ENERGY INDIANA, LLC FOR A FUNDAMENTALL Y DIFFERENT FACTOR VARIANCE TABLE OF CONTENTS 1.0 INTRODUCTION... ...........................................................................................................1 2.0 BACKGROUND .......................................... ........... .. ............................ ....................... .... .. 1 2.1 Edwardsport IGCC Station .................................................................................. 1 2.2 EPA' s Rulemaking for Updated Stream Electric Power Generating Point Source Category Effluent Limitation Guidelines ............ .........................2 2.2.1 Fiiral Sttem,i Electric ELGs ................... ..... ...............................................2 2.2.2 Preliminary RulemakiJig Activities for Steam ElecJric ElGs .................. .3 2.3 Need for a FDF Variance for Edwardsport IGCC Station ............ ....................4 3.0 PLANT SPECIFIC INFORMATION .................................................................... .......... 6 3.1 Polk Station.............. ......................................................................................... ......6 3.1.1 Polk's Gasijicatio11 Process ........................................................................ 6 3.J.2 Polk's Grey Water Treatment .. ................................................................... 8 3.2 Ed~vardsport IGCC ............................................................................................... 8 3.2.1 Edwardsporl's Gasification Process ,wd Ge11eratio11 ofGr ey Water ....... 8 3.2.2 Edwardsporl's Grey Water Treatme,it System ("GWTS'') ........................ 9 3.3 Wabash ruver .................................... .. .................................................. ............... 11 3.3.I Wabas/r River's Gasificat/011 Process ...................... ................................. 11 33.2 Wabash's Gasijicatio11 Wastewater Treatmerit ........................................ 12 4.0 SUMMARY OF EPA'S RATIONALE AND TECHNICAL BASIS FOR THE BAT ELGS FOR GASIFICATION WASTEWATER .................... .., .......................... 13 4.1 Statutory Requirements for DAT Effluent Limitations ... ................. ............... 13 4.2 Evaporation System Is Tecbnoloc Basis for Gasification Wastewater E LGs ................................................................................................ 13 4.3 Gasiticatjon Wastewater Sampling at Polk and Wabash ................................. 13 4.4 Data Exclusions and Calculation of Limitations ............................................... 15 4.5 Compliance Costs ................................................................................................. 15 • 4.6 Fina I ELG Limitations ........................................................................................ 16 5.0 DESCRIPTION OF FUNDAMENTALLY DIFFERENT FACTORS FOR THE EDWARDSPORT IGCC STATION .......................... ~ ...................................... .. 16 5.1 Summary of Fundamental Differences .............................................................. 16 5.2 Fundamental Differences in Fuels Used in the Gasification Process .............. 18 5.2.1 1Ji.ffere11ces in Fuels Used by Polk, Wabash a11d Edwardsport IGCC. ... 18 5.2.2 Di.ffere11ces in Fuel Coustitmmls .............................................................. 18 5.2.3 Nature a11d Effect oftlte F111tda11umtally Differe11t Fuel Factor ............ 19 5.2.3.1 Differences in Asb Content ......................................................... 19 5.2.3.2 Differences in Chlorine Content.. ............................................... 20 5.2.3.3 Differences in Mercury Content .................................................21 5.3 Fundamental Differences in Preliminary Cooling and Cl~ning of Syogas ............................................................................................... 21 5.3.1 Syngas Cooling and Clea11i11g at Polk Statio11 ......................................... 22 5.3.2 Syngas Cooli11g a11d Clem1i11g at Edwardsport IGCC ............................. 22 5.3.3 Sy11gas Cooling and Cleo11i11g lit Wabaslt JGCC ...... ............................... 23 5.3.4 Nature <>f ti,e F1mdame11tally Differe11t Factor Relati11g to Sy11glls Cooli,rg and Clea11i11g .................................................................. 23 5.4 Fundamental Differences io the Type and Configuration of the Evaporative Processes E mployed in Treatmeut of Gasification Wastewater ...................... 24 5.4.1 Polle Station's Treatment ofGasificatio11 Waste1Mter ............................. 25 ii 5.4.1.1 Type and Configuration of Polk's Evaporative Processes .......25 5.4.1.2 Configuration of the Condeusate Outputs of Polk's Evaporative Processes ...................................... ...................... ..... 25 5.4.2 Edwardsport IGCC's Treatment of Gasification Wastewater ................. 25 S.4.2.1 Differences in Type and Configuration of the Evaporative Processes ...................................................................................... 26 5.4.2.2 Differences in the Configuration of the Condensate Outputs of the Evaporative Processes at Edwardsport IGCC .... ....... .................................................................................. 28 S.4.2.3 The ELGs for Gasification Wastewater Are Not Representative of the Combined Condensate Effluent of Edwardsport IGCC's GWTS ..................................................... 30 5.4.3 Wabaslt IGCC .... ....................................................................................... 32 5.4.4 Nature of tlte Fr111dame11/al/y Differences Associated with Treatme11t ofthe Gasification Wastewaters ............................................. 32 6.0 DUKE ENERGY'S FDF VARIANCE APPLICATION MEETS STATUTORY ELIGIBILITY FACTORS .................... , ......................................................................... 33 6.1 Statutory Prerequisites to an FDF Variance ..................................................... 33 6.2 Duke Energy's Application Satisfies the Statutory Prerequisites ................ ...33 6.2.1 Fundame11ta/ly Different Factors ........................................................... .33 6.2.2 l11formatioll Base for Application ............................................................ 33 6.2.3 Tlte Proposed Altemalive Limitaliotts N o Less Striltgent titan J11stifled by the Fm1dame11tal Dijfereuce ................................................ 34 6.2.4 Tlte Proposed Alterna.tive Limitatio,rs Will Not Res11/t i11 Markedzy More Adverse No11-Water Quali.ty E11viromtte11tal Impacts ................... .34 6.2.5 Tlte Application is Timely ........................................................................ .34 7.0 PROPOSAL FOR ALTERNATE BAT EFFLUENT LIMITATIONS FOR EDWARDSPORT IGCC STATION'S GASIFICATION WASTEWATER .............35 iii 7.1 Basis of Duke Energy's Requested Alternative Effluent Limitations ............. 35 7.2 Proposed Alternative BAT Effluent Limitations .............................................. 36 7.3 Duke E nergy's Proposed Alternative Effluent Limitations Are Consistent with Regulatory Requirement ......................................................... 37 7.3.J Tlte Proposed A /temative Effluent Limitations Will Assure Compfia11ce will, Water Quality-Based Efj111ent Limit.ations ................. 3 7 7.3.2 The Proposed Altemative Efjlue11t Limitations Will Assure Comp/la11ce willi Section 208(e) of tlte CW.A ........................................... 39 8.0 RESERVATION OF RIGHTS .....................................................................................