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Note: * indicates required field. Updated:12/12/2001
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Permitting Authority: MONTEREY BAY UNIFIED APCD

County: MONTEREY AFS Plant ID: 06-053-00012

Facility: CALPINE CORPORATION

*Document Type: Final Permit
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Permit No.: TV24-01
Expiration Date: 11/30/06
Page 1 of 24 Pages

MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT
TITLE V OPERATING PERMIT
24580 Silver Cloud Court
Monterey, CA 93940
Telephone: (831) 647-9411





ISSUED TO:

Calpine Corporation DBA
Calpine King City Cogeneration, LLC & King City Energy Center, LLC
750 Metz Road
King City, CA 93930

PLANT SITE LOCATION:

750 Metz Road
King City, CA 93930


ISSUED BY:




Douglas Quetin, Air Pollution Control Officer Date



Nature of Business: Cogeneration & Power Generation

SIC Codes: 4931 - Electric & Other Services Combined
4911 - Electric Power Generation


RESPONSIBLE OFFICIAL: ALTERNATIVE RESPONSIBLE OFFICIAL:

Name: Mr. Thomas R. Mason Name: Mr. Steve Bean
Title: Executive Vice-President Title: Plant Manager
Phone: (408) 995-5115 Phone: (831) 385-4090


FACILITY CONTACT PERSON:

Name: Mr. Steve Bean
Title: Plant Manager
Phone: (831) 385-4090
TABLE OF CONTENTS



FACILITY DESCRIPTION 3

EQUIPMENT DESCRIPTION 3

PERMIT SHIELD 4

FEDERALLY ENFORCEABLE EMISSION LIMITS AND STANDARDS 6

TESTING REQUIREMENTS AND PROCEDURES 13

MONITORING AND RECORD KEEPING REQUIREMENTS 15

REPORTING REQUIREMENTS 18

GENERAL CONDITIONS 20

TITLE IV ACID RAIN PERMIT 23

FACILITY DESCRIPTION


Calpine’s King City facilities consist of Calpine King City Cogeneration, LLC, a combined cycle cogeneration plant and the King City Energy Center, LLC, a simple cycle combustion turbine.

Calpine King City Cogeneration, LLC produces most of the electricity through the expansion of fuel combusted (natural gas or fuel oil) in a gas turbine that is connected to a generator. Heat in the gas turbine exhaust is used to produce high-pressure steam in a heat recovery steam generator, which is used to produce additional electricity from a steam turbine/generator. Low pressure steam extracted from this system is used as process steam at the Gilroy Foods’ plant. In addition, two auxiliary boilers are located at the facility and are used to provide process steam in order to maximize electrical power production from the steam turbine/generator during peak power production periods or when the gas turbine is not operating. This facility is presently permitted by the District's local permitting program under Permits to Operate (PTO) 10211A, 10212, & 10213.

The King City Power Plant, is in the process of being constructed, as authorized by the California Energy Commission’s Adoption Order for Docket Number 01-EP-6 dated May 2, 2001 and by District Authority to Construct (ATC) 10738 issued on July 30, 2001. This simple cycle combustion turbine is fired exclusively on natural gas.



EQUIPMENT DESCRIPTION


UNIT 1 - COGENERATION FACILITY CONSISTING OF:

1a. Gas Turbine Generator, General Electric Frame 7, Model EA 7001, Rated At 941.1 MMBtu/Hr Maximum Heat Input And 85.7 MW Maximum Electrical Output, Steam Injection For NOx Control, 5 Lbm H2O/Lbm Fuel Design Midpoint.

1b. Water Tube Type Heat Recovery Steam Generator, Nooter/Eriksen, High Pressure Steam Capacity: 272,000 Lbs/Hr @ 1475 psia and 930°F, Low Pressure Steam Capacity: 87,900 Lbs/Hr @ 100 PSIA Saturated.

1c. Steam Turbine Generator, Asea-BBC Dual Admission, Dual Extraction, High Pressure Turbine Model HT-16, Low Pressure Turbine Model LT-25, Generator Model Brush BDAX 7-225ERH, 37.6 MW Rated Electrical Output.

1d. Condenser, Graham Manufacturing Model 79130, Water Cooled Shell And Tube Condenser Rated At 272 MMBtu/Hr.

1e. Cooling Tower, Hamon Cooling Towers, Three Cell Counterflow Cooling Tower Rated At 300 MMBtu/Hr, 24,000 GPM Rating, Drift Loss: 0.002%.

1f. Selective Catalytic Reduction NOx Control System, Mitsubishi Heavy Industries Titanium Oxide Grid Honeycomb Type Catalyst, 1846 Cubic Feet Of Catalyst, Consisting Of: Twenty Eight Vertically Stacked Catalyst Modules, Each Holding 200 Ceramic Blocks Containing The Active Catalyst, Each Block Measuring 6" x 6" x 16", With 5 mm Catalyst Pitch.

1g. Ammonia Injection System Consisting Of: Two Ammonia Dilution Blowers, Each 10 Hp, 700 SCFM @ 40" W.G. Static Pressure, Combining Anhydrous Ammonia And Dilution Air; Ammonia Injection Grid With Thirty 2 Inch Distribution Pipes Configured Vertically Across The Duct, Each With Twenty Four Injection Nozzles.


2. Two Nebraska Model NS-F-86 Water Tube Boilers, Each Designed To Produce 121,120 Lbs/Hr Saturated Steam at 170 PSIG, Each With Coen Model 275 Type DAF Multi-Staged Low NOx Burners Designed For A Maximum Heat Input Of 143 MMBtu/Hr And Two Stage Flue Gas Recirculation With A Design Rate Of 15%, And CO Control Provided By An Engelhard Catalytic Carbon Monoxide Converter With 21.24 Cubic Feet Of Ceramic Honeycomb Type Precious Metal Coated Catalyst Consisting Of Twelve Catalyst Modules, Each Measuring 24.5" x 24.5" x 6.4" Located Between The Boiler Flue Gas Outlet And Economizer Inlet On Each Boiler.


UNIT 2 - SIMPLE CYCLE GAS TURBINE CONSISTING OF:

2a. Simple Cycle Natural Gas Fired Gas Turbine Generator, Model LM6000PD, Rated At 467.6 MMBtu/Hr Maximum Heat Input And 49.6 MW Nominal Electrical Output, Dry Low NOx Combustor To Control NOx Formation.

2b. Selective Catalytic Reduction NOx Control System.

2c. Oxidation Catalyst For Carbon Monoxide Control.

2d. CEM System Designed To Continuously Record The Measured Gaseous Concentrations, And Calculate And Continuously Monitor And Record The NOx And CO Concentrations Corrected To Fifteen (15) Percent Oxygen (O2) On A Dry Basis.

2e. Chiller Cooling Tower With A Design Water Recirculation Rate Of 4,160 Gallons Per Minute.



PERMIT SHIELD







FEDERALLY ENFORCEABLE EMISSION LIMITS AND STANDARDS

1. The Frame 7 gas turbine pollutant mass emission rates in the exhaust discharged to the atmosphere shall not exceed the following limits [District Rule 207; District Rule 403 limit of 617.9 lbs PM10/hr; District Rule 404 NOx limit of 140 lbs/hr and SO2 limit of 2000 ppmv]:

Pollutant Lbs/Hour Lbs/Day
Oxides of Nitrogen (NOx) 30.1 722
Carbon Monoxide (CO) 20.0 480
Ammonia (NH3) 13.9 334
Particulate Matter <10 microns (PM10) 2.5 60
Volatile Organic Compounds (VOC) 1.0 24
Sulfur Dioxide (SO2) 0.5 12


2. During periods of natural gas firing, the auxiliary boiler pollutant mass emission rates in the exhaust discharged to the atmosphere shall not exceed the following limits from each boiler [District Rule 207; District Rule 403 limit of 30.8 lbs PM10/hr; District Rule 404 NOx limit of 140 lbs/hr and SO2 limit of 2000 ppmv; 40 CFR Part 60, Subpart Db SO2 limit of 11.4 lbs/hr, PM10 limit of 14.3 lbs/hr, and NOx limit of 28.6 lbs/hr]:

Pollutant Lbs/Hour
Oxides of Nitrogen (NOx) 7.25
Carbon Monoxide (CO) 2.65
Particulate Matter <10 microns (PM10) 0.60
Volatile Organic Compounds (VOC) 0.20
Sulfur Dioxide (SO2) 0.085


3. While firing on natural gas the emission concentration of oxides of nitrogen, as NO2, in the Frame 7 turbine exhaust discharged to the atmosphere shall not exceed 9 ppmvd, calculated at 15 percent O2, dry. [District Rule 207; District Rule 404 NOx limit of 200 ppm; 40 CFR Part 60, Subpart GG NOx limit of 200 ppm]


4. During periods of natural gas firing, the emission concentration of oxides of nitrogen, as NO2, in the auxiliary boiler exhaust discharge to the atmosphere shall not exceed 40 ppmvd at boiler loads greater than 40 percent and 100 ppmvd at boiler loads of 40 percent or less, calculated as a one hour average at 3 percent O2, dry. [District Rule 207; District Rule 404 NOx limit of 350 ppm]


5. The emission concentration of ammonia in the Frame 7 turbine exhaust discharged to the atmosphere shall not exceed 10 ppmvd, calculated at 15 percent O2, dry. [District Rule 207]


6. The emission concentration of carbon monoxide in the Frame 7 turbine exhaust discharged to the atmosphere shall not exceed 10 ppmvd, calculated at 15 percent O2, dry. [District Rule 207]


7. The heat input rate to the LM6000 Turbine shall not exceed 467.6 MMBtu/hr and the unit shall only be fired on natural gas. [District Rule 207]


8. The maximum daily combined emissions from the LM6000 Turbine, including start-ups and shutdowns, shall not exceed the following limits: [District Rule 207]

Pollutant Lbs/Day
Oxides of Nitrogen (NOx) 233.95
Carbon Monoxide (CO) 172.13
Particulate Matter <10 microns (PM10) 60.00
Volatile Organic Compounds (VOC) 28.80
Ammonia (NH3) 150.48
Sulfur Dioxide (SO2) 7.92


9. The pollutant mass emission rates in the exhaust discharged to the atmosphere from the LM6000 Turbine shall not exceed the following limits: [District Rules 207, 403, & 404]

Pollutant Lbs/Hour Lbs/Day
Oxides of Nitrogen (NOx) 8.65 207.6
Carbon Monoxide (CO) 6.31 151.4
Particulate Matter <10 microns (PM10) 2.50 60.0
Volatile Organic Compounds (VOC) 1.20 28.8
Ammonia (NH3) 6.27 150.5
Sulfur Dioxide (SO2) 0.33 7.9


10. The pollutant concentrations discharged to the atmosphere from the LM6000 Turbine shall not exceed the following limits, calculated at 15 percent O2 on a one-hour rolling average unless otherwise noted: [District Rule 207]

Pollutant Concentration (ppm)
Oxides of Nitrogen (as NO2) 5.0
Carbon Monoxide (CO) 6.0 (3-hour rolling average)
Ammonia (NH3) 10 (3-60 minute averages)


11. The pollutant emission rates discharged to atmosphere from the LM6000 Turbine during a start-up shall not exceed the following limits. These limits apply to any start-up period which shall not exceed one (1) hour. [District Rule 207]


Pollutant Lbs/Start-Up
Oxides of Nitrogen (as NO2) 35.00
Carbon Monoxide (CO) 27.00
Volatile Organic Compounds (as CH4) 1.20


12. The Frame 7 turbine and auxiliary boilers shall only be fired on natural gas, except that No. 2 fuel oil may be used during training/testing of the auxiliary boilers, as described in Condition 22, or during periods of natural gas curtailment by the utility, or in the events of natural gas supply malfunction or disruption not within the control of Calpine Corporation. In any event, No. 2 fuel oil shall not be used for more than 240 hours per year per piece of equipment. [District Rule 207]


13. During periods of No. 2 fuel oil firing, the Frame 7 turbine pollutant mass emission rates in the exhaust discharged to the atmosphere shall not exceed the following limits [District Rule 207; District Rule 403 limit of 617.9 lbs PM10/hr; District Rule 404 NOx limit of 140 lbs/hr and SO2 limit of 2000 ppmv]:

Pollutant Lbs/Hour Lbs/Day
Sulfur Dioxide (SO2) 116.1 2786
Oxides of Nitrogen (NOx) 47.8 1147
Carbon Monoxide (CO) 22.0 528
Ammonia (NH3) 13.9 334
Particulate Matter <10 microns (PM10) 10.0 240
Volatile Organic Compounds (VOC) 1.0 24


14. During periods of No. 2 oil firing, the auxiliary boiler pollutant mass emission rates in the exhaust discharged to the atmosphere shall not exceed the following limits from each boiler [District Rule 207; District Rule 403 limit of 30.8 lbs PM10/hr; District Rule 404 NOx limit of 140 lbs/hr and SO2 limit of 2000 ppmv; 40 CFR Part 60, Subpart Db SO2 limit of 11.4 lbs/hr, PM10 limit of 14.3 lbs/hr, and NOx limit of 28.6 lbs/hr]:

Pollutant Lbs/Hour
Oxides of Nitrogen (NOx) 13.8
Particulate Matter <10 microns (PM10) 12.65
Sulfur Dioxide (SO2) 7.55
Carbon Monoxide (CO) 2.85
Volatile Organic Compounds (VOC) 0.25


15. While firing on No. 2 fuel oil, the emission concentration of oxides of nitrogen, as NO2, in the Frame 7 turbine exhaust discharged to the atmosphere shall not exceed 15 ppmvd, calculated at 15 percent O2, dry. [District Rule 207; District Rule 404 NOx limit of 200 ppm; 40 CFR Part 60, Subpart GG NOx limit of 200 ppm]


16. During periods of No. 2 fuel oil firing at boiler loads greater than 40 percent, the emission concentration of oxides of nitrogen, as NO2, in the auxiliary boiler exhaust discharged to the atmosphere shall not exceed 69 ppmvd, calculated as a one hour average at 3 % O2, dry. [District Rule 207]


17. The sulfur content on any No. 2 fuel oil used as fuel in the Frame 7 turbine or auxiliary boilers shall not exceed 0.05 percent by weight. All fuel received must be certified to contain 0.05 percent sulfur, or less, by weight. [District Rule 207, District Rule 412 limit of 0.5% by weight sulfur]


18. The Frame 7 turbine shall undergo no more than one cold start-up and one shutdown per day. [District Rule 207]


19. Calpine Corporation shall maintain a turbine start-up protocol for both hot and cold start-up, which details the procedures that will be used to minimize the pollutant emissions, and shall amend this protocol based on operating experience. [District Rule 207]


20. Daily NOx emissions from all combustion equipment at the facility shall not exceed 1,070 pounds per day. During periods of oil firing as allowed for on the permits for the Frame 7 Turbine and the Boilers, the allowable daily NOx limit is increased by the incremental hourly NOx limit for oil firing versus the natural gas hourly NOx limit for all hours the equipment was actually operated on fuel oil. [District Rule 207]




21. Cumulative emissions, including emissions generated during Start-ups and Shutdowns, from all equipment at the King City Power Plant shall not exceed the following quarterly and annual limits: [District Rule 207]


Pollutant
Pounds Of Emissions
First QuarterSecond QuarterThird
QuarterFourth QuarterAnnual
NOx (as NO2)
65,39266,11866,84566,845265,200
SOx
1,7481,7681,7871,7877,090
VOC
4,7624,8154,8684,86819,313
PM10
12,62512,76512,90512,90551,200
CO
58,44559,09559,74459,744237,028

Note: During periods of oil firing as allowed for on the permits for the Frame 7 Turbine and the Boilers, the allowable emissions are increased by the incremental hourly limit for oil firing versus the natural gas hourly limit for all hours the equipment was actually operated on fuel oil.


22. Training/testing of the auxiliary boilers shall be allowed only under the following conditions [District Rule 207]:

a. Only one boiler may be tested in a calendar day,

b. The District shall be notified a minimum of 30 calendar days prior to the date of training/testing on No. 2 fuel oil,

c. The District has the authority to postpone training/testing of the auxiliary boilers due to adverse ambient air-quality conditions,

d. Each boiler may be used for training/testing on fuel oil a maximum of two (2) times per calendar year, and

e. The training/testing on fuel oil shall not exceed two (2) full-load equivalent hours.


23. Operation must be conducted in compliance with all data and specifications submitted in the applications to the California Energy Commission and the MBUAPCD. [District Rule 207]




24. Equipment must be properly maintained and kept in good operating condition. [District Rule 207]


25. Equipment shall not be operated unless the air pollution control equipment is in full use. [District Rule 207]


26. The PM10 emissions from the Frame 7 cooling tower shall not exceed 20 pounds per day. [District Rule 207]


27. Water treatment chemicals containing chromium shall not be used in the cooling towers. [District Rule 207, 40 CFR Part 63.400]


28. Calpine shall hold Sulfur Dioxide Allowances in the compliance subaccount for the LM6000 Turbine (Unit 2) not less than the total annual emissions of sulfur dioxide for the previous calendar year from each boiler. [District Rule 219]


29. No air contaminant shall be discharged into the atmosphere for a period or periods aggregating more than three (3) minutes in any one (1) hour which is as dark or darker than Ringelmann 1 or equivalent 20% opacity. [District Rule 400]


30. Calpine Corporation shall cause to be operated an ambient air monitoring station at a site approved by the District in Southern Monterey County, for PM10, O3, and standard meteorological parameters on a continuous basis, in accordance with EPA requirements contained in 40 CFR Part 58, and as deemed necessary in accordance with the Air Resources Board guidelines. The air monitoring station instrumentations shall be compatible with the District's daily data retrieval polling methods.

31. Calpine Corporation shall comply with the requirements of 40 CFR Part 68 - Risk Management Plans. Calpine Corporation’s Risk Management Plan must be revised and updated by December 17, 2004 or earlier as required by 40 CFR §68.190. Calpine Corporation shall certify compliance with these requirements as part of the annual compliance certification required by 40 CFR Part 70 and this permit. [40 CFR Part 68]


32. Calpine Corporation shall comply with the requirements of 40 CFR Part 82 - Protection of Stratospheric Ozone. [40 CFR Part 82]


TESTING REQUIREMENTS AND PROCEDURES


33. Within sixty (60) days after the commissioning of the LM6000 Turbine, a Relative Accuracy Test Audit (RATA) must be performed on the CEMS in accordance with 40 CFR Part 60 Appendix B Performance Specifications and a performance test shall be performed, and the written test results of the performance tests shall be provided to the District within thirty (30) days after testing. A complete test protocol shall be submitted to the District no later than thirty (30) days prior to testing, and notification to the District at least ten (10) days prior to the actual date of testing shall be provided so that a District observer may be present. Changes to the test date made subsequent to the initial ten day notification may be communicated by telephone or other acceptable means no less than forty-eight (48) hours prior to the new test date.

a. Oxides of Nitrogen (as NO2): ppmv dry at 15% O2 and lbm/hr.
b. Carbon Monoxide: ppmv dry at 15% O2 and lbm/hr.
c. Volatile Organic Compounds (as CH4): ppmv and lbm/hr.
d. Ammonia (NH3): ppmv dry at 15% O2 and lbm/hr

and the following process parameters:

e. Natural gas consumption.
f. Turbine load in megawatts.
g. Stack gas flow rate (SDCFM) calculated according to procedures in EPA method 19, and % CO2.


34. An annual performance test of each turbine shall be conducted prior to January 1 of each year. Calpine Corporation shall conduct performance tests in accordance with EPA Method 20 for NOx and O2, EPA Method 10 for CO, EPA Method 18 for hydrocarbons, the collection method specified in BAAQMD Method 1B and the analysis specified in EPA Method 350.3 for ammonia to verify compliance with conditions 1, 3, 5, 6, 9 and 10. Calpine Corporation shall furnish the District written results of such performance tests within thirty (30) days of the test completion. A testing protocol shall be submitted to the District no later than 30 days prior to testing, and District notification at least 10 days prior to the actual date of testing shall be provided so that a District observer can be present. The compliance test shall include, but not be limited to, the determination of the following parameters [District Rule 207]:

a. Oxides of Nitrogen, as NO2: ppm at 15% O2, dry and lb/hr.

b. Carbon Monoxide: ppm at 15% O2, dry and lb/hr.

c. Ammonia: ppm at 15% O2, dry and lb/hr.

d. Volatile Organic Compounds (VOC) and TOG: ppm and lb/hr.

and the following process parameters:

e. Natural gas consumption.

f. Electricity generated during the test.


35. Calpine Corporation shall cause semi-annual testing, prior to January 1 and July 1 of each year, to be performed to verify compliance with the Ammonia (NH3) slip limits contained in Conditions 5, 8, 9 and 10. Calpine Corporation shall conduct this testing in accordance with the collection method specified in BAAQMD Source Test Procedure ST-1B and the analysis specified in EPA method 350.3. Calpine Corporation shall furnish the District written results of such performance tests within thirty (30) days of the test completion. A testing protocol shall be submitted to the District no later than 30 days prior to testing, and District notification at least 7 days prior to the actual date of testing shall be provided so that a District observer can be present. [District Rule 207]


36. An annual performance test of the auxiliary boilers shall be conducted prior to January 1 of each year. Calpine Corporation shall conduct performance tests in accordance with EPA Method 7E for NOx, EPA Method 10 for CO, EPA Method 3A for O2 to verify compliance with conditions 2 and 4. Calpine Corporation shall furnish the District written results of such performance tests within thirty (30) days of the test completion. A testing protocol shall be submitted to the District no later than 30 days prior to testing, and District notification at least 10 days prior to the actual date of testing shall be provided so that a District observer can be present. The compliance test shall include, but not be limited to, a test of the exhaust gas in the auxiliary boiler exhaust stacks, for [District Rule 207]:

a. Carbon Monoxide: ppm at 15% O2, dry and lb/hr;

c. Natural gas consumption rate.


37. No testing is specified for the emission limitations contained in conditions 13, 14, 15 and 16 while firing on fuel oil. Fuel oil is for emergency use only, and the District has no intention of the facility operating the equipment on fuel oil just to perform compliance testing.


38. Testing of all fuel oil delivered to the facility shall be conducted prior to or upon receipt of the fuel oil. Calpine Corporation shall conduct testing in accordance with ASTM D1552-83 or ASTM D1552-83 to verify compliance with condition 17. Calpine Corporation shall furnish the District written results of the test prior to firing the fuel oil, but in no case later than thirty (30) days of completion.


39. Calpine Corporation shall conduct monthly measurements of the cooling tower water total dissolved solids in accordance with EPA Method 160.1 to verify compliance with the cooling tower PM10 emission limit as specified in condition 26. The PM10 emissions shall be calculated as the product of the cooling tower recirculating water flow rate times the total dissolved solids in the cooling water times the cooling tower drift loses, as follows [District Rule 207]:

PM10 lb/day = 0.012 x F x TDS x DL

where: F = cooling tower recirculation water flow rate

TDS = total dissolved solids in the cooling water

DL = drift loss = 0.002 percent


40. No testing is specified for the generic (Rule 400) opacity requirement from condition 29 while firing on natural gas. When firing on fuel oil continuously for a period of 120 hours and at intervals of seven (7) days during continuing operation on fuel oil , Calpine Corporation shall conduct testing in accordance with the methodology contained in EPA Method 9 and the averaging/aggregating period contained in District Rule 400 to verify compliance with condition 29.



MONITORING AND RECORD KEEPING REQUIREMENTS


41. Calpine Corporation shall demonstrate compliance by using properly operated and maintained continuous emission monitors on all combustion equipment (during all hours of operation including equipment Start-up and Shutdown periods, except for periods of CEM maintenance performed in accordance with District requirements) for all of the following parameters: [District Rule 207]
b. Oxygen (O2) Concentrations, Nitrogen Oxide (NOx) Concentrations, and Carbon Monoxide (CO) Concentrations.
c. Ammonia Injection Rates.

d. Heat Input Rate.
e. Corrected NOx concentrations, NOx mass emissions (as NO2), corrected CO concentrations, and CO mass emissions.

f. Total Heat Input Rate for every clock hour.
g. The NOx mass emissions (as NO2), and corrected average NOx emission concentration for every clock hour.
h. The CO mass emissions, and corrected average CO emission concentration for every rolling one-hour period.
i. On an hourly basis, the cumulative total NOx mass emission (as NO2) and the cumulative total CO mass emissions.
j. For each calendar day, the cumulative total NOx mass emission (as NO2) and the cumulative total CO mass emissions.
k. For each calendar quarter, the cumulative total NOx mass emission (as NO2) and the cumulative total CO mass emissions.
l. For each calendar year, the cumulative total NOx mass emission (as NO2) and the cumulative total CO mass emissions.


42. Calpine Corporation shall calculate and record on a daily basis, the Volatile Organic Compound (VOC) mass emissions, Fine Particulate Matter (PM10) mass emissions, Sulfur Dioxide (SO2) mass emissions, and Ammonia (NH3) mass emissions from each combustion source and the cooling tower. Calpine Corporation shall use the actual heat input rates, actual Start-up times, actual Shutdown times, and District-approved emission factors to calculate these emissions. The calculated emissions shall be presented as follows: [District Rule 207]

a. For each calendar day, VOC, PM10, SO2, and NH3 mass emissions shall be summarized for each source.

b. On a daily basis, the cumulative total VOC, PM10, SO2 and NH3 mass emissions shall be summarized for each calendar quarter and for the calendar year.


43. Calpine Corporation shall monitor SO2 emissions from the LM6000 Turbine in accordance with 40 CFR Part 72 and 75. [District Rule 219]


44. CEMs shall be installed and operated on the LM6000 Turbine. This system shall be designed to continuously record the measured gaseous concentrations, and calculate and continuously monitor and record the CO, CO2 or O2, and NOx concentrations corrected to fifteen (15) percent oxygen (O2) on a dry basis. [District Rules 201, 213, and 219]


45. A written Quality Assurance program for the LM6000 Turbine CEM must be established in accordance with 40 CFR Part 75, Appendix B for NOx and 40 CFR Part 60, Appendix F for CO which includes, but is not limited to: procedures for daily calibration testing, quarterly linearity and leak testing, record keeping and reporting implementation, and relative accuracy testing. [District Rule 219]


46. A continuous monitoring system must be operated to monitor and record the mole ratio of injected ammonia to HRSG exhaust stack NOx. This system must be accurate to within ± 5 percent. [District Rule 207]


47. A continuous monitoring system must be operated to monitor and record the fuel consumption and the mass ratio of steam to fuel being fired in the Frame 7 Turbine. This system must be accurate to within ± 5 percent. [District Rule 207; 40 CFR Part 60, Subpart GG]


49. Continuous emission monitoring systems must be calibrated and operated to measure each auxiliary boiler exhaust for NOx, CO and O2. The system shall continuously record the NOx and CO concentrations corrected to a value of 3 percent O2, dry, and the NOx and CO mass emission rates in pounds per hour. The system shall meet all the requirements of Rule 213 and shall be certified at least once per year. [District Rule 207; District Rule 213]


50. Instrumentation must be operated to measure the SCR catalysts inlet temperature and pressure differential across the SCR catalysts. [District Rule 207]


51. Instrumentation must be operated to measure the auxiliary boiler oxidation catalyst inlet temperature and pressure differential across the oxidation catalyst. [District Rule 207]


52. Calpine Corporation shall monitor and record all start-up, shutdown, and operational profiles in a log maintained on site. [District Rule 207]


53. Calpine Corporation shall monitor and record all periods of oil firing in a log maintained on site and shall submit a summary of this data on an annual basis, at renewal time of the District (non Title V) Permit to Operate. [District Rule 207]


54. Calpine Corporation shall submit to the Air Pollution District upon request at the time of annual District (non Title V) Permit to Operate renewal, the annual natural gas fuel consumption, annual electricity generated, and annual emissions of NOx, CO, TOG, and ammonia from this equipment for the preceding calendar year. [District Rule 207]


55. As applicable Calpine Corporation shall maintain the following general records of required monitoring information [District Rule 218]:

A) the date and time of sampling or measurements;
B) the date(s) analyses were performed;
C) the company or entity that performed the analyses;
D) the analytical techniques or methods used;
E) the results of such analyses;
F) the operating conditions existing at the time of sampling or measurement; and
G) the records of quality assurance for continuous monitoring systems (including, but not limited to quality control activities, audits, and calibration drift checks) and source testing methods.


56. Calpine Corporation shall maintain records on the occurrence and duration of any start-up, shutdown, or malfunction in the operation of the equipment under this permit. [District Rule 218]


57. Calpine Corporation shall retain records of all required monitoring data and support information for a period of at least five (5) years from the date of the monitoring, sample collection, measurement, report, and all original strip-chart recordings for continuous monitoring instrumentation, and copies of all reports required by the permit. [District Rule 218]



REPORTING REQUIREMENTS


58. Calpine Corporation shall report breakdowns which results in the inability to comply with any emission standard or requirement contained on this permit to the Air Pollution Control Officer (APCO) within one hour of the occurrence, this one hour period may be extended up to six hours for good cause by the APCO. The APCO may elect to take no enforcement action if Calpine Corporation demonstrates to the APCO’s satisfaction that a breakdown condition exists.

A) a statement that the condition or failure has been corrected and the date of correction; and

B) a description of the reason(s) for the occurrence; and

C) a description of the corrective measures undertaken and/or to be undertaken to avoid such an occurrence in the future; and

D) an estimate of the emissions caused by the condition or failure.


59. Calpine Corporation shall submit monthly reports to the District, in a District approved format, within 30 days from the end of the month and these shall include [District Rules 207, 213 & 218]:

B) the averaging period used for data reporting corresponding to the averaging period specified in the emission test period used to determine compliance with an emission standard for the pollutant in question; and

C) time and date of each period during which the continuous monitoring system was inoperative except for zero and span checks and the nature of system repairs and adjustments; and

D) all information pertaining to any monitoring as required by the permit; and

E) a negative declaration specifying when no excess emissions occurred; and

F) a summary of actual monthly emissions from the CEM for all equipment which operated.


60. Calpine Corporation shall submit quarterly Electronic Data Reports (EDR) to EPA for the LM6000 Turbine. These reports must be submitted within 30 days following the end of each calendar quarter and shall include all information required in §75.64. [40 CFR Part 75]


61. Calpine Corporation shall submit the total quarterly emissions, to verify compliance with Condition 21, to the District within 30 days from the end of each calendar quarter. [District Rule 207]


62. Calpine Corporation shall submit an annual compliance certification report to the District and U.S. EPA, in a District approved format, no later than February 15 for the period of January 1 through December 31 of the preceding year. [District Rule 218]

B) the compliance status; and

C) whether compliance was continuous or intermittent; and

D) the method(s) used for determining the compliance status of the source, currently and over the reporting period.



GENERAL CONDITIONS


63. Calpine Corporation shall comply with all conditions of this federal operating permit. Any noncompliance with a permit condition constitutes a violation of the Federal Clean Air Act and is grounds for enforcement action; for permit termination, revocation and reissuance, or modification; or for denial of a permit renewal application. [District Rule 218]


64. In an enforcement action, the fact that Calpine Corporation would have to halt or reduce the permitted activity in order to maintain compliance with the conditions of this permit is not a defense. [District Rule 218]


65. This permit may be modified, revoked, reopened and reissued, or terminated for cause as determined by the District. The filing of a request by Calpine Corporation for a permit modification, revocation and reissuance, or termination, or of a notification of planned changes or anticipated noncompliance does not stay any permit condition. [District Rule 218]


66. This permit does not convey any property rights in either real or personal property, or any exclusive privileges, nor does it authorize any injury to private property or any invasion of personal rights, nor any infringement of federal, state, or local laws or regulations. [District Rule 218]


67. Calpine Corporation shall furnish to the District, within a reasonable time, any information that the District may request in writing to determine whether cause exists for modifying, revoking and reissuing, or terminating the permit, or to determine compliance with the permit. Upon request, Calpine Corporation shall also furnish to the District copies of records required to be retained by this permit. [District Rule 218]


68. For applicable requirements that will become effective during the permit term, Calpine Corporation shall meet such requirements on a timely basis unless a more detailed schedule is expressly required by the applicable requirement. [District Rule 218]


69. Any document submitted to the District pursuant to this permit shall contain certification by the responsible official of truth, accuracy and completeness. All certifications shall state that based on information and belief formed after reasonable inquiry, the statements and information in the document are true, accurate, and complete. Calpine Corporation shall promptly, upon discovery, report to the District a material error or omission in these records, reports, plans, or other documents. [District Rule 218]


70. Calpine Corporation shall report any violation of any requirement contained in this permit to the District within 96 hours after such occurrence. The violation report shall include the time intervals, date and magnitude of excess emissions; nature and cause of the excess (if known), corrective actions and preventive measures adopted. [District Rule 218]


71. Upon any administrative or judicial challenge, all the emission limits, specific and general conditions, monitoring, record keeping, and reporting requirements of this permit, except those being challenged, remain valid and must be complied with. [District Rule 218]


72. For this federal operating permit to remain valid through the permit term of five years from the date of issuance, Calpine Corporation shall pay an annual emission fee based upon the requirements of District Rule 308. [District Rule 218]


73. Calpine Corporation shall have available at the facility at all times a copy of this federal operating permit. [District Rule 218]


74. For protection from enforcement action based upon an emergency, as defined in District Rule 218, the responsible official for Calpine Corporation shall submit to the District relevant evidence which demonstrates [District Rule 218]:

A) an emergency occurred; and

B) that Calpine Corporation can identify the cause(s) of the emergency; and

C) that the facility was being properly operated at the time of the emergency; and

D) that all steps were taken to minimize the emissions resulting from the emergency; and

E) within two working days of the emergency event, Calpine Corporation provided the District with a description of the emergency and any mitigating or corrective actions taken.


75. Upon presentation of credentials, Calpine Corporation shall allow the District, the ARB, the EPA, or an authorized representative, to perform the following [District Rule 218]:

A) enter upon the premises where the federal operating permit source is located or in which any records are required to be kept under the terms and conditions of this federal operating permit;
****

MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT
TITLE IV ACID RAIN PERMIT
24580 Silver Cloud Court
Monterey, CA 93940
Telephone: (831) 647-9411
Effective December 1, 2001 through November 30, 2006


ISSUED TO:

Calpine Corporation DBA
King City Energy Center, LLC
750 Metz Road
King City, CA 93930

PLANT SITE LOCATION:

750 Metz Road
King City, CA 93930


ISSUED BY:




Douglas Quetin, Air Pollution Control Officer Date



OBIS Code: 10294

Nature of Business: Electric Power Generation

SIC Code: 4911 - Electric Power Generation


DESIGNATED REPRESENTATIVE:

Name: Steve Bean
Title: Plant Manager
Phone: (831) 385-4090

ALTERNATIVE DESIGNATED REPRESENTATIVE:

Name: Barbara McBride
Title: Environmental Manager - Western Regional Office
Phone: (925) 931-1428



ACID RAIN PERMIT CONTENTS

1) Statement of Basis

2) The applicable SO2 and NOx emissions limitations.

3) Comments, notes and justifications regarding permit decisions and changes made to the permit application forms during the review process, and any additional requirements or conditions.

4) The permit application submitted for this source. The owners and operators of the source must comply with the standard requirements and special provisions set forth in the application.



1) STATEMENT OF BASIS



2) SO2 AND NOX EMISSIONS LIMITATIONS


UNIT 2
Pollutant
Requirement
SO2 Emissions Limitation
Calpine shall hold SO2 allowances, as of the allowance transfer deadline, in this unit’s compliance subaccount not less than the total annual emissions of SO2 for the previous calendar year from this unit.
NOx Emissions Limitation
This unit is not subject to the NOx requirements from 40 CFR Part 76 as this unit is not capable of firing on coal.


3) COMMENTS, NOTES AND JUSTIFICATIONS

None



4) PERMIT APPLICATION

Attached