~~oST04"~~~' IS',' ••••• "0

~ -- %S~~~ :~ •..~."'1- o

"-1(PRO~~

UNITED STATES ENVIRONMENTAL PROTECTION AGENCYREGION 2

290 BROADWAYNEW YORK, NY 10007-1866

DEe -7 2015

Honorable Basil SeggosActing CommissionerNew York State Department of Environmental Conservation625 BroadwayAlbany, New York 12233-0001

RE: EPA Review of Proposed Title V Operating Permit for Greenidge StationPermit ID: 8-5736-00004/00017

Dear Acting Commissioner Seggos:

By this letter, the U.S. Environmental Protection Agency Region 2 Office (EPA) objects to theissuance of the above-referenced proposed Title V operating permit for the Greenidge Station("Greenidge") (permit ID: 8-5736-00004/00017), located in Dresden, Yates County, New York,and owned by Greenidge Generation LLC. EPA received the proposed permit and the New YorkState Department of Environmental Conservation's ("NYSDEC's") Responsiveness Summary toPublic Comments ("Responsiveness Summary") via e-mail notification on October 27,2015.

This objection is based on our review of the proposed Title V permit, statement of basis, 1

application, Responsiveness Summary, and other supporting information included in thepermitting record and is issued under the authority of Title V of the Clean Air Act (Act),specifically Section 505(b) (1) of the Act, and 40 CFR 70.8 (c). Pursuant to 40 CFR 70.8 (c),EPA will object to the issuance of any proposed Title V permit in writing within 45 days ofreceipt of the proposed permit (and all necessary supporting information) if EPA determines thatit is not in compliance with applicable requirements under the Act or the operating permitprogram requirements of 40 CFR Part 70. The 45-day period for EPA review expires onDecember 10,2015.

The primary basis for EPA's objection is that, if reactivated, Greenidge will be subject to theClean Air Act's Prevention of Significant Deterioration ("PSD") permit program as a newsource. EPA provided comments to NYSDEC related to the applicability of PSD to the facilityon July 31 and September 16,2014. In the September 16 letter, Region 2 articulated concernsthat the previous owners of Greenidge did not manifest a continuous intent and concrete plans torestart the facility. Having received no response to the July 31 and September 16, 2014 letters,EPA wrote to Commissioner Joseph Martens on May 15,2015 to reiterate Region 2's concernsabout the reactivation, stating that "it is very important that the EPA receive a response prior tothe NYSDEC making a decisionasto whether Greenidge, upon reactivation, would be subject to

1 Part 70 requires permitting authorities to prepare a "statement of basis" for each Title V permit. 40 CFR 70.7(a)(5). The document prepared by NYSDEC is titled "permit review report". A permit review report prepared andissued by NYSDEC is the functional equivalent of a statement of basis.

Internet Address (URL). http://www.epa.govRecycled/Recyclable. Printed with Vegetable 011Based Inks on Recycled Paper (MInImum 50% Postconsumer content)

the Prevention of Significant Deterioration requirements" and expressing the Region'scommitment to work with NYSDEC to address the issues. Region 2 thereafter received noresponse from NYSDEC and, on August 12,2015, was provided with the draft Title V permitdecision, which did not appear to take into account Region 2's comments on the reactivationIssue.

The facility has not operated for nearly five years and was permanently shut down, asdemonstrated, among other things, by the prior owners' representations to two federal courts andgovernment agencies and their relinquishment of Clean Air Act Title V and Title IV permits. Byconcluding that the facility will not be a new source upon reactivation, NYSDEC failed toincorporate into the proposed Title V permit applicable requirements under the Clean Air Act'sPSD program and implementing regulations as approved into New York's State ImplementationPlan ("SIP"). Thus, the proposed Title V permit fails to assure compliance with applicable PSDrequirements. A detailed explanation ofEPA's objection is provided in Enclosure1.

EPA has numerous concerns with the proposed permit, contained in Enclosures 2 and 3. Whilewe are objecting on the basis that Greenidge will be subject to the Clean Air Act's PSD permitprogram as a new source, we remain concerned with NYSDEC's conclusion that the reactivationdoes not constitute a major modification. As such, Enclosure 2 addresses deficiencies inNYSDEC's analysis ofthe facility's reactivation as a major modification. While thesedeficiencies are not relevant to satisfying our objection that Greenidge'S reactivation is subject toPSD as a new source, we believe they will help inform NYSDEC's development of the PSDpermit. Enclosure 3 includes concerns related to permit conditions and other issues that weexpect NYSDEC can best address as it moves forward with incorporating PSD conditions intothe proposed permit.

The Title V regulations, including 40 CFR 70.8(c) (4), and Section 505 (c) ofthe Act outline theconsequences if the State fails to satisfy the EPA's objections. To satisfy EPA's objections,NYSDEC should assure compliance with the PSD program, which is an applicable requirement,by incorporating PSD permit conditions for carbon monoxide and nitrogen oxides, at aminimum, into the proposed permit. This objection letter does not constitute a waiver ofEPA'sauthority under 40 CFR 70.7(g) to reopen the permit for cause. Furthermore, under the Clean AirAct, our opportunity for review and comment on this permit does not prevent EPA from takingenforcement action for any non-compliance, including non-compliance related to issues that havenot been specifically raised in those comments.

If you have questions or wish to discuss this further, please contact me at 212-637-5000 or Mr.Steven Riva, Chief, Permitting Section, at (212) 637-4074 or at riva.steven@epa.gov.

Sincerely,

____1Ud,"fhyl" b';JIl~

U Judith A. EnckRegional Administrator

2

Enclosures

cc:Jared Snyder, NYSDECDavid Shaw, NYSDECRobert Stanton, NYSDECThomas Marriott, NYSDECChristopher LaLone, NYSDECDan Walsh, NYSDEC

Dale IrwinGreenidge Generation, LLC590 Plant RoadPO Box 187Dresden, NY 14441-0187

3