20120713Formal Complaint.pdf

RECEIVED
Stephen R. Thomas, ISB No. 2326
MOFFATT, THOMAS, BARRETT, ROCK &
FIELDS, CHARTERED
101 S. Capitol Blvd., 10th Floor
Post Office Box 829
Boise, Idaho 83701
Telephone [phone]
Facsimile [phone]
[e-mail]
252 14.0000
Attorneys for Complainant
2612JUL 13 PH t: 18
r i .

r .. Ltflij r
UTLtTIES COMMSSIo;.!
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
HIDDEN HOLLOW ENERGY 2 LLC,
Case No. IPC-E-j.24?
Complainant,
FORMAL COMPLAINT
vs
IDAHO POWER COMPANY,
Respondent.
I. INTRODUCTION
This is a Formal Complaint by Hidden Hollow Energy 2 LLC ("Hidden Hollow"
or "Complainant") with the Idaho Public Utilities Commission (the "Commission") pursuant to
Idaho Administrative Rules 31.01.01.054 and other applicable law. Complainant and
Respondent Idaho Power Company entered into a Firm Energy Sales Agreement ("FESA") dated
December 8, 2010, which Respondent submitted to the Commission on December 10, 2010, with
ORIGINAL
FORMAL COMPLAINT -1
Client: 2492739.1
its Application requesting approval thereof. The Commission entered its Order No. 32180
approving the FESA on February 11, 2011.
Section 19.1 of the FESA grants authority to the Commission to resolve disputes
between the parties, including interpretation of terms and conditions of the FESA.
Notwithstanding Section 19.1 which Complainant timely invoked on June 11, 2012, and two
incidents offorce majeure of which Complainant gave Respondent Notice thereby excusing its
nonperformance, Respondent issued a letter on June 14, 2012, alleging material breach of the
FESA by Complainant and purporting to terminate the FESA unilaterally. Respondent did so
even after having received Complainant's notice letter to the Commission, dated June 11, 2012,
whereby Complainant invoked the Commission's authority under Section 19.1 to settle the
dispute. By this Formal Complaint, Complainant requests declaratory and injunctive relief from
the Commission interpreting the FESA, finding that Complainant is not in material breach
because of the force majeure incidents, and confirming that the FESA remains intact as a viable
agreement under the Public Utility Regulatory Policies Act of 1978 (PURPA) and Commission
Order No. 32180.
II. PRELIMINARY MATTERS
1. Copies of all pleadings and other correspondence in this matter should be
served upon counsel for Hidden Hollow as follows:
Stephen R. Thomas, MOFFATT, THOMAS, BARRETT, ROCK & FIELDS,
CHARTERED, 101 S. Capitol Boulevard, 10th Floor, Post Office Box 829, Boise, Idaho 83701-
0829; Telephone: [phone]; Facsimile: [phone].
In support of its Formal Complaint, Hidden Hollow alleges as follows:
FORMAL COMPLAINT - 2 Client: 2492739.1
III. IDENTITY OF THE PARTIES
2.Hidden Hollow Energy 2 LLC ("Complainant") is a Delaware limited
liability company, duly registered to conduct business in the state of Idaho. Its address is
Hidden Hollow Energy 2 LLC, do Fortistar Methane Group, One North Lexington Avenue,
White Plains, New York 10601. Complainant has a Landfill Gas Franchise Agreement with
Ada County, State of Idaho, which agreement entitles it to a certain amount of methane gas from
the Hidden Hollow landfill in Ada County, Idaho, and further entitles it to operate a 3.2
megawatt landfill gas generating facility at that location, which is a qualifying facility under
PURPA.
3.Respondent Idaho Power Company ("Respondent" or "Idaho Power") is
an Idaho corporation with its principal place of business at 1221 West Idaho Street, Boise,
Idaho 83702. Idaho Power is an electric company and a public utility subject to the jurisdiction
and regulation of the Commission pursuant to Title 61, Idaho Code, including without limitation,
Section 62-129, Idaho Code. Idaho Power is also subject to the jurisdiction of the Federal
Energy Regulatory Commission ("FERC").
IV. JURISDICTION
4.This case involves a PURPA-approved project and underlying agreement.
In Idaho, the Commission possesses jurisdiction over complaints regarding such agreements.
IDAHO CODE §§ 61-129, -501, -502, -503, -612; see also Afton Energy, Inc. v. Idaho Power Co.,
111 Idaho 925, 929, 729 P.2d 400, 404 (1986). The Commission has jurisdiction to issue
declaratory rulings regarding utility contracts pursuant to Idaho's Declaratory Judgment Act,
Idaho Code Section 10-1203, See also Utah Power and Light vs. Idaho Public Utilities Comm 'n,
112 Idaho 10, 12, 730 P.2d 930, 932 (1986).
FORMAL COMPLAINT -3 Client: 2492739.1
V. APPLICABLE LAWS AND REGULATIONS
5.The Commission has jurisdiction over Idaho Power, an electric utility, and
the issues raised in this matter, pursuant to the authority and power granted it under Title 61 of
the Idaho Code and PURPA. The Commission also has authority under PURPA and the
implementing regulations of FERC, to set avoided costs, to order electric utilities to enter into
fixed-term obligations for the purchase of energy from qualified facilities (QFs), and to
implement FERC rules.
6.On February 11, 2011, the Commission approved Respondent's
application requesting approval of Respondent's Firm Energy Sales Agreement (FESA) with
Complainant. See Order No. 32180. Section 19.1 of the FESA provides that "all disputes
related to or arising under this Agreement, including but not limited to the interpretation of the
terms and conditions of this Agreement, will be submitted to the Commission for resolution."
Complainant invoked that authority by letter to the Commission dated June 11, 2012, with a
copy to Respondent.
7.On July 13, 2000, the Idaho Supreme Court held that a civil authority's
revoking or suspending of a required environment permit in the context of a PURPA project
could constitute an event offorce majeure, which would not excuse posting of security but
would excuse other obligations for construction and operation. Idaho Power Co. vs.
Cogeneration, Inc., 134 Idaho 738, 9 P.3d 1204 (2000).
VI. FACTUAL BACKGROUND
8.On February 22, 2011, Complainant entered into an agreement with Ada
County, State of Idaho, entitled Landfill Gas Franchise Agreement (Agreement No. 9261), for
FORMAL COMPLAINT - 4 Client: 2492739.1
the right to develop a qualifying facility under PURPA at the Ada County landfill, using methane
gas generated by the landfill to create electricity.
9.On December 8, 2010, Complainant and Respondent entered into a Firm
Energy Sales Agreement (FESA) based in part on the underlying Landfill Gas Franchise
Agreement at Ada County's Hidden Hollow landfill. Respondent filed an Application with the
Commission on December 10, 2010, seeking approval of that 20-year FESA. By Order
No. 32180, which the Commission entered on February 11, 2011, Respondent's application was
approved.
10.The FESA requires Complainant to post delay liquidated damages security
in the amount of $144,000, which Complainant has done (in the form of a cash deposit).
11.Under applicable law, both Ada County and Complainant are obliged to
satisfy air quality emissions standards from the flaring of methane gas at the landfill by Ada
County and, separately, from the stacks of Complainant's generators fired by the same methane
gas. However, in or about June 2011, Ada County advised Idaho DEQ that certain contaminant
levels from its landfill gas had increased to a level such that Ada County was no longer in
compliance with its existing air quality permit. Since that advice to IDEQ, Ada County and
Complainant have worked to find a solution, but without success. Accordingly, for want of a
valid and outstanding air quality permit issued by IDEQ, Complainant was unable to meet its
scheduled operation date of February 28, 2012, under Section 5.3 of the FESA. Therefore, by
letter dated February 7, 2012, Complainant gave notice to Respondent under Section 14.1 of the
FESA, that Complaint is "rendered unable to perform such obligation because of an event of
Force Majeure that commenced on June 22, 2011, and continues today [and that the] Events
described above regarding the qualify of the landfill gas at the Landfill have occurred through no
FORMAL COMPLAINT - 5 Client: 2492739.1
fault of [Complainant], were impossible to have been expected by [Complainant] and, as of this
date, are impossible for [Complainant] to overcome." A true and correct copy of the February 7,
2012, letter is attached hereto as Exhibit A.
12.On February 7, 2012, Complainant gave Ada County notice offorce
majeure under its Landfill Gas Franchise Agreement for substantially similar reasons. A true
and correct copy of that letter is attached hereto as Exhibit B.
13.Almost three months later, on May 3, 2012, Respondent responded to
Complainant's force majeure letter (Exhibit A) by (A) disagreeing that the air quality permit
issue is an event offorce majeure, (B) giving notice that it will deem Complainant to be in
material breach of the FESA if Complainant fails to achieve the Operation Date by June 1, 2012,
and (C) advising further that if the Operation Date of June 1, 2012, is not satisfied, then Delay
Liquidated Damages in the amount of $144,000 would be due and payable to Respondent under
Article 5.3.2 of the FESA.
14.On May 16, 2012, Complainant gave written notice of a secondforce
majeure event to the Respondent and to Ada County. True and correct copies of those letters are
attached hereto as Exhibits C and D, respectively. That secondforce majeure event traces to a
contract between Ada County and Dynamis Energy, LLC, entered in or about November 1, 2011,
whereby Ada County promised to deliver to Dynamis some 408 tons of landfill waste per day,
which waste was otherwise destined for the Hidden Hollow landfill in Ada County, State of
Idaho, and would otherwise have generated the methane gas already promised to Complainant.
After meetings between Complainant and Ada County in January 2012, through which
Complainant obtained additional information sufficient to calculate future gas curves reasonably
likely to come out of the Ada County landfill at Hidden Hollow, and as impacted by the Dynamis
FORMAL COMPLAINT -6 Client: 2492739.1
contract with Ada County, it became apparent to Complainant that the Ada County contract with
Dynamis was inconsistent with Ada County's prior underlying Landfill Gas Franchise
Agreement(s) with Complainant.
15.On June 1, 2012, the project contemplated by the FESA was not up and
running by the June 1, 2012 Operation Date, due to the events specified by Complainant in its
aforesaidforce majeure letters.
16.On June 7, 2012, Ada County responded to Exhibit D, disagreeing with
the force majeure event cited by Complainant in its May 16, 2012, letter. A true and correct
copy of Ada County's June 7, 2012, letter is attached hereto as Exhibit E.
17.On June 11, 2012, in response to these developments, Complainant issued
a letter to the Commission dated June 11, 2012, citing the two force majeure events and the
Dispute Resolution Clause, Section 19. 1, in the FESA. A true and correct copy of the June 11,
2012, letter is attached hereto as Exhibit F.
18.On June 14, 2012, Respondent wrote Complainant, purporting to terminate
the FESA and requesting payment of Delay Liquidated Damages of $144,000. A true and
correct copy of that letter is attached hereto as Exhibit G.
19.On June 14, 2012, Respondent also issued a letter to the Commission
advising of its contention that it had, by virtue of Exhibit G, terminated the FESA with
Complainant, notwithstanding (A) the Commission's Final Order No. 32180 approving said
agreement, (B) the June 11, 2012, letter by Complainant invoking the Commission's jurisdiction,
and (C) the Complainants' underlying timely written notices of force majeure events, which
suspended performance by Complainant and thereby precluded a finding of material breach. A
FORMAL COMPLAINT - 7 Client: 2492739.1
true and correct copy of Respondent's June 14, 2012, letter to the Commission is attached hereto
as Exhibit H.
20.On June 19, 2012, IDEQ issued to Complainant a new Air Quality Permit
to Construct, setting substantially more rigorous air emission standards than under its prior
permit. A true and correct copy of the June 19, 2012, Air Quality Permit to Construct is attached
hereto as Exhibit I.
21.On June 22, 2012, Respondent drew down on Complainant's posted
security in the amount of $144,000. This drawdown on this security was wrongful under the
aforesaid facts and legal authorities.
VII. LEGAL CLAIM
22.Complainant's foregoing paragraphs 1 - 21 are repeated and re-alleged as
if set forth at length.
23.Respondent breached the FESA by unilaterally suspending its
performance, by declaring Complainant to be in material breach, by drawing down on
Complainant's security, and by unilaterally declaring the FESA to be terminated.
24.Respondent further breached the FESA by failing to adjudicate its disputes
with Complainant before this Commission, despite having received prior notice to do so in a
manner consistent with FESA and the plain language of the FESA.
25.Complaint has made reasonable and substantial efforts to perform under
the FESA. Notwithstanding those best efforts, unforeseen air emission and related air quality
permit problems caused by others made it impossible to perform fully by, e.g., putting its air
permit in jeopardy, beginning in June 2011, which lead to a new and substantially more rigorous
FORMAL COMPLAINT - 8 Client: 2492739.1
air permit issued June 19, 2012. Moreover, and separately, based upon underlying agreements
with Ada County, State of Idaho, tracing back to 2005 granting Complainant's affiliate with
rights to exploit landfill methane gas to energy projects under PURPA, Complainant did not and
could not have foreseen that Ada County would, in November 2011, enter into a second contract
with Dynamis promising substantial and increased amounts of waste material to it, rather than
allow same to go into the landfill at Hidden Hollow, as previously contemplated, so as to
generate landfill methane gas for Complainant's projects.
26.Complainant has made its best efforts to give timely and proper notices of
force majeure to both the Respondent and to Ada County. Nonetheless, both Respondent and
Ada County have rejected those force majeure notices. Respondent has purported to deem
Complainant's performance under the FESA to be in material breach, ignoring (A) the force
majeure letters and reasons contained therein, and (B) Complainant's prior invocation of this
Commission's jurisdiction on June 11, 2012. Complainant could not and did not foresee that
Respondent would enter into an agreement with Dynamis for 408 tons of refuse to be delivered
to Dynamis that would otherwise have been delivered to the Ada County landfill.
27.The Commission has authority to resolve disputes under Section 19.1 of
the FESA, including "all disputes related to or arising under this agreement. . . [including] the
interpretation of the terms and conditions of this agreement." According to the FESA, such
disputes "will be submitted to the Commission for resolution."
VIII. PRAYER FOR RELIEF
WHEREFORE, Complainant respectfully requests that the Commission issue an
order:
FORMAL COMPLAINT - 9 Client: 2492739.1
1.Requiring Respondent to rescind and retract its June 14, 2012, letter of
termination and allegation of Complainant's material breach (Exhibit G);
2.Requiring Respondent to return the $144,000 Delay Liquidated Damages
to Complainant;
3.Declaring under Idaho Code Section 10-1203, Title 61, Idaho Code, and
the Commission's inherent authority, that Complainant is not in material breach of the FESA and
that the two incidents offorce majeure cited in Exhibits A and C are indeed valid force majeure
events under the FESA; and
4.Granting any other relief in favor of Complainant that the Commission
deems necessary.
RESPECTFULLY SUBMITTED this 13th day of July, 2012.
MOFFATT, THOMAS, BARRETT, ROCK &
FIELDS/ CHARTERED /
By /5 j
Stephq6 L 'l'homas - Of the Firm
Attor4eyA for Complainant
FORMAL COMPLAINT -10 Client: 2492739.1
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 13th day of July, 2012, I caused a true and
correct copy of the foregoing FORMAL COMPLAINT to be served by the method indicated
below, and addressed to the following:
Jean Jewell
Commission Secretary
IDAHO PUBLIC UTILITIES COMMISSION
472 W. Washington St.
Boise, ID 83702
jean.jewellpuc.idaho.gov
Office of General Counsel
IDAHO POWER COMPANY
1221 W. Idaho St.
Boise, ID 83702
Attn.: Jason B. Williams
( ) U.S. Mail, Postage Prepaid
(X) Hand Delivered
( ) Overnight Mail
( ) Facsimile
( ) U.S. Mail, Postage Prepaid
(X) Hand Delivered
( ) Overnight Mail
FORMAL COMPLAINT -11 Client: 2492739.1
lwa",~Ifm"Imm
HIDDEN HOLLOW ENERGY 2 LLC
do Fortistar Methane Group
One North Lexington Avenue • White Plains, New York 10601
Tel. [phone] • Fax. [phone]
February 7, 2012
Senior Vice President, Power Supply
Idaho Power Company
P.O. Box 70
Boise, Idaho
83707
Re: Firm Energy Sales Agreement
Dear Sir or Madame:
We refer to the Firm Energy Sales Agreement between Idaho Power Company ("IPC")
and Hidden Hollow Energy 2 LLC ("Seller"), dated December 8, 2010 (as amended,
supplemented or otherwise modified, the "PPA"). Capitalized terms used in this letter without
definition have the meanings set forth in the PPA.
Seller is advising IPC that an event of Force Majeure commenced on June 22, 2011 and
continues to date with respect to the sole fuel supply source of the Facility. As you are aware,
and as further described below, this event has occurred through no fault of Seller, and despite its
exercise of due diligence, Seller is unable to remedy the situation at this time.
On June 22, 2011, Ada County, Idaho (the "County") advised the Idaho Department of
Environmental Quality ("IDEQ") that the levels of certain contaminants in the landfill gas being
supplied by the County from the Ada County Landfill (the "Landfill") to Seller under an existing
landfill gas supply agreement had increased to a level such that the County was no longer in
compliance with its existing air quality permit. Specifically, the County confirmed that samples
tested at the Landfill indicated that the landfill gas being collected by the County contained
hydrogen sulfide ("H2S") at concentration levels almost twenty times the concentration levels
allowed by the County's existing permit.
Since the County's June 22 advice to IDEQ, Seller has actively and continually sought
information and guidance from both the County and IDEQ regarding the County's proposed H2S
remediation plan and Seller has since that date continually modified its Facility construction
schedule in light of this ongoing issue. Seller's representatives have met with the County at least
six times (as recently as Wednesday, January 25, 2012), in order to address this matter. In an
attempt to expedite a solution for all parties involved, Seller proposed to the County on
December 8, 2011 a plan to finance, design, construct, own and operate an H2S remediation
system at the Landfill, which plan was rejected by the County in writing on January 12, 2012.
Unfortunately, despite Seller's good faith efforts to move forward as expeditiously as possible,
the County has not yet finalized its remediation plan, has rejected Seller's offer to provide
financing and installation assistance for a proven H2S remediation system, and, as we understand
it, is now in the process of designing itself an H2S rernediation system. We do not know at this
time when such plan will be ready for our review.
In addition, Seller does not know at this time what additional remediation equipment may
be needed, what changes to the Facility's footprint may be required, and what additional
requirements or conditions may be contained in the County's or Seller's modified permits.
These questions can only be answered after (1) IDEQ has completed whatever investigation of
the Landfill's emissions it deems appropriate (after receipt of all data required of the County),
(ii) modified air permits are issued by IDEQ to the County and Seller, and (iii) the County has
finalized its remediation plan consistent with its revised air permit. Only then can Seller
properly complete its design, engineering and construction of the Facility.
Due to the foregoing, (1) Seller will be unable to cause the Facility to achieve the
Operation Date on or before the Scheduled Operation Date of February 28, 2012, as required by
Section 5.3 of the PPA, and (ii) pursuant to Section 14.1 of the PPA, hereby notifies you that
Seller is rendered unable to perform such obligation because of an event of Force Majeure that
commenced on June 22, 2011 and continues today. The events described above regarding the
quality of the landfill gas at the Landfill have occurred through no fault of Seller, were
impossible to have been expected by Seller and, as of this date, are impossible for Seller to
overcome.
Despite the foregoing declaration and anticipated delay in permitting, construction and
ultimate commercial operation, Seller remains confident that, given appropriate and timely
assistance and cooperation from the County, the Facility will be built and will operate in
accordance with the PPA. In fact, Seller continues to work diligently with IDEQ and the County
to resolve the aforementioned issues and to commence construction and operation of the Facility
as soon as is legally permitted, and Seller undertakes to provide IPC with regular updates on the
status of the party's resolution of this matter. Seller remains committed to completing the
Facility in a commercially reasonable manner as quickly as is practicable.
Very truly yours,
HIDDEN HOLLOW ENERGY 2 LLC
Name: '!as.esicki
Title: President
Cc: Idaho Power Company,
Cogeneration and Small Power Production
I oil 10011 N-1
HIDDEN HOLLOW ENERGY 2 LLC
do Fortistar Methane Group
One North Lexington Avenue • White Plains, New York 10601
Tel. [phone] • Fax. [phone]
February 7, 2012
Board of Ada County Commissioners
200 W. Front Street, P Floor
Boise, Idaho 83702
Re: Landfill Gas Franchise Agreement
Dear Commissioners:
We refer to the Landfill Gas Franchise Agreement (Agreement No. 9261) between
Hidden Hollow Energy 2 LLC ("Franchisee") and Ada County, Idaho (the "County"), dated
February 22, 2011 (as amended, supplemented or otherwise modified, the "Franchise
Agreement"). Capitalized terms used in this letter without definition have the meanings set forth
in the Franchise Agreement.
Franchisee is advising the County that an event of Force Majeure has occurred under the
Franchise Agreement with respect to the sole fuel supply source of the Franchisee's Facilities,
which event will prevent Commercial Operations from commencing within 12 months after the
date of execution of the Franchise Agreement, as required by Sections 2.3(A) and (C) of the
Franchise Agreement. As you know, and as further described below, this event has occurred
through no fault of Franchisee, and despite its exercise of due diligence, Franchisee is unable to
remedy the situation at this time.
As you are aware, the concentrations of certain contaminants in the Landfill gas being
supplied by the County from the Landfill to Franchisee have increased to a level such that neither
the County nor Franchisee is in compliance with its existing air quality permit. We understand
that samples tested at the Landfill have indicated that the Landfill Gas being collected by the
County contains hydrogen sulfide ("H2S") at concentration levels almost twenty times the
concentration levels allowed by the County's existing air permit.
Franchisee has actively and continually sought information and guidance from both the
County and the Idaho Department of Environmental Quality regarding the County's proposed
H2S remediation plan, and Franchisee has continually modified its Facility construction schedule
in light of this ongoing issue. In an attempt to expedite a solution acceptable to both parties,
Franchisee proposed to the County on December 8, 2011 a plan to finance, design, construct,
own and operate an H2S remediation system at the Landfill, which plan was rejected by the
County in a writing dated January 12, 2012. Unfortunately, despite Franchisee's good faith
efforts to move forward as expeditiously as possible, the County's remediation plan has not been
G:\80100\I2corr\Ietter to ada county 020712
finalized. Franchisee is prepared to review the County's plan, on which Franchisee must now
rely, promptly upon receipt.
In addition, Franchisee does not know at this time what changes to the Franchisee's
Facilities' equipment layout, design, and operating procedures may be required, and what
additional requirements or conditions may be contained in Franchisee's modified air permit.
Until these facts are known, Franchisee cannot complete the design, equipment procurement and
construction of Franchisee's Facility.
Due to the foregoing, (i) Franchisee will be unable to cause Franchisee's Facilities to
commence Commercial Operations on or before February 22, 2012 (the 12-month anniversary of
the execution of the Franchise Agreement), and (ii) hereby notifies you that Franchisee is
rendered unable to perform such obligation because of the occurrence of a continuing event of
Force Majeure. The events described above regarding the quality of the Landfill Gas at the
Landfill have occurred through no fault of Franchisee, were impossible to have been expected by
Franchisee and, as of this date, are impossible for Franchisee to overcome.
Nothing contained in this letter shall be deemed to (i) be a waiver by Franchisee of any of
its rights or remedies under the Franchise Agreement, or (ii) constitute a release or waiver by
Franchisee of any present or future claims arising under or with respect to the Franchise
Agreement.
Very truly yours,
HIDDEN HOLLOW ENERGY 2 LLC
By:
Name: Thom sJ. Gesicki
Title: President
Cc: Ada County Operations Director
G:\80 I OO\I 2corr\Ietter to ada county 020712
EXHIBIT C
HIDDEN HOLLOW ENERGY 2 LLC
do Fortistar Methane Group LLC
One North Lexington Avenue • White Plains, New York 10601
Tel. [phone] • Fax. [phone]
May 16, 2012
Senior Vice President, Power Supply
Idaho Power Company
P.O. Box 70
Boise, Idaho
83707
Re: Firm Energy Sales Agreement
Dear Sir or Madame:
We refer to the Firm Energy Sales Agreement between Idaho Power Company ("IPC")
and Hidden Hollow Energy 2 LLC ("Seller")., dated December 8, 2010 (as amended,
supplemented or otherwise modified, the "PPA"). Capitalized terms used in this letter without
definition have the meanings set forth in the PPA.
Seller hereby advises IPC that an event of Force Majeure has occurred under the PPA
with respect to the sole fuel supply source of the Seller's Facility. This event has occurred
through no fault of Seller, and despite its exercise of due diligence, Seller is unable to remedy the
situation at this time.
On February 7, 2012 Seller sent a letter to IPC advising of the occurrence of an event of
Force Majeure involving the inability of Seller to comply with its existing air quality permit, due
to increased concentration of hydrogen sulfide contained in the Landfill Gas from the Landfill
supplied by Ada County, Idaho (the "County") to Seller. That event of Force Majeure continues
today. However, the event of Force Majeure described herein is separate and distinct from the
event of Force Majeure described in that February 7th letter.
Section 3.1 of the Landfill Gas Franchise Agreement (Agreement No. 9261) between
Seller and the County, dated February 22, 2011 (as amended, supplemented or otherwise
modified, the "Gas Agreement") states, in part:
"On and after the Commercial Operations Date, subject to the
terms and conditions of this Agreement. County shall sell to [Seller] and
deliver to the Delivery Point, and [Seller] shall purchase and take at the
Delivery Point 100% of [Seller's] requirements of County's Landfill Gas
as needed by [Seller] to operate [Seller's] Facilities, but in no event more
than 1,250 scfln."
G:\801 00\1-2corr\1etter to Idaho power company 051512
Section 2.6 of the Gas Agreement specifically contemplates that Seller's Facility will
initially include an electric power plant including two Caterpillar low emission engine-generator
sets (3520's). These Caterpillar engine-generator sets each require at least 600 sefin of landfill
gas to operate. It is, therefore, impossible to run both of these engine-generator sets continuously
at full output if the landfill gas from the Landfill to Seller's Facility falls below 1,200 scfln.
Seller has been made aware, through media reports, press releases issued by the County
and subsequent discussions with the County, that while the County and Seller were actively
negotiating the terms of the Gas Agreement in 2011, the County separately negotiated and
entered into certain contractual arrangements with Dynamis Energy, LLC ("Dynamis"), whereby
Dynamis was given the right to divert from the Landfill a minimum of 408 tons of municipal
solid waste per day and up to 572 tons of municipal solid waste per day, and to use such waste as
fuel for a separate waste to energy facility generating electricity to be sold to IPC (the "Dynamis
Project"). Seller has learned that Dynamis has also executed a power purchase agreement with
IPC, whereby IPC would purchase l00% of the electricity generated by the Dynamis Project.
In addition, Seller has been advised by the County that the municipal solid waste to be
diverted to the Dynamis Project will consist primarily of high levels of organic materials, while
the remaining waste being deposited into the Landfill (and ultimately decomposing into Landfill
Gas available to Seller's Facility) will contain a lower concentration of organic materials, thus
generating significantly less Landfill Gas upon its anaerobic decomposition.
After learning of the Dynamis Project and the contractual rights to this municipal solid
waste granted to Dynamis by the County, Seller commenced an internal investigation to
determine the potential effects of the Dynamis Project on the Seller's Facility. This 'internal
investigation shows that the Dynamis Project (even at its minimum size of 408 tons of municipal
solid waste per day) will have the effect of permanently reducing Landfill Gas from the Landfill
to levels significantly below the 100% (or 1,250 scfm) requirements needed by the Seller's
Facility and that are required by the Gas Agreement. This result would be unaffected despite
additional gas collection wells contemplated by the County.
Because of the significant uncertainty created by County's and IPC's contractual
arrangements with Dynamis and the potential permanent reduction in the quantity of Landfill
Gas to be delivered to Seller's Facility due to the Dynamis Project, Seller (i) is unable at this
time to commence construction of Seller's Facility, (ii) cannot obtain the debt or equity financing
otherwise available to it to pay for the construction of Seller's Facility, and (iii) hereby notifies
you that Seller is rendered unable to perform its obligation to construct Seller's Facility at this
time because of the occurrence of a continuing event of Force Majeure.
In addition, Seller hereby notifies IPC that because of this continuing event of Force
Majeure, Delay Liquidated Damages under the PPA shall not be due and owing with respect to
Seller's failure to cause the Facility to achieve the Operation Date on or before the Scheduled
Operation Date.
The events described above regarding the impending insufficiency and inadequacy of
Landfill Gas at the Landfill due to the Dynamis Project have occurred through no fault of Seller,
G:\801 00\12corr\letter to Idaho power company 051512
were created solely by the actions of others, including the County, were impossible to have been
expected by Seller and, as of this date, are impossible for Seller to overcome.
We remind IPC that, during the negotiation of the PPA between Seller and IPC, 1PC
requested that Seller demonstrate an adequate supply and quality of Landfill Gas at the Facility
so as to ensure a viable generation project for the Be of the PPA. Seller complied with that
requirement by negotiating a Gas Agreement that provided for the supply of 100% of Seller's
fuel requirements (subject to a maximum amount). We note, however, that the adequate supply
and quality requirement specifically requested by IPC will now be violated solely because of the
existence of the Dynamis Project, which is now contractually obligated to sell all of its generated
electricity to [PC.
Nothing contained in this letter shall be deemed to (i) be a waiver by Seller of any of its
rights or remedies under the PPA, or (ii) constitute a release or waiver by Seller of any present or
future claims against IPC, the County or any other third party.
Very truly yours,
HIDDEN HOLLOWJNERGY 2
By: 2IJ-
Name: David Wentworth
Title: Senior Vice President
Cc: Idaho Power Company,
Cogeneration and Small Power Production
G:\80100\12corr\letter to Idaho power company 051512
I* Irl 0 0
a I I 1 0118 -ru
HIDDEN HOLLOW ENERGY 2 LLC
do Fortistar Methane Group LLC
One North Lexington Avenue • White Plains, New York 10601
Tel. [phone] • Fax. [phone]
May 16, 2012
Board of Ada County Commissioners
200 W. Front Street, 3td Floor
Boise, Idaho 83702
Re: Landfill Gas Franchise Agreement
Dear Commissioners:
We refer to the Landfill Gas Franchise Agreement (Agreement No. 9261) between
Hidden Hollow Energy 2 LLC ("Franchisee") and Ada County, Idaho (the "County"), dated
February 22, 2011 (as amended, supplemented or otherwise modified, the "Franchise
Agreement"). Capitalized terms used in this letter without definition have the meanings set forth
in the Franchise Agreement.
Franchisee hereby advises the County that an event of Force Majeure has occurred under
the Franchise Agreement with respect to the sole fuel supply source of the Franchisee's
Facilities, which event has prevented Commercial Operations from commencing within 12
months after the date of execution of the Franchise Agreement, as required by Sections 2.3(A)
and (C) of the Franchise Agreement.
On February 7, 2012 Franchisee sent a letter to the Board of Ada County Commissioners
advising of the occurrence of an event of Force Maj cure involving the inability of the Franchisee
to comply with its existing air quality permit, due to increased concentration of hydrogen sulfide
contained in the Landfill Gas from the Landfill supplied by County to Franchisee. That event of
Force Majeure continues today. However, the event of Force Majeure described herein is
separate and distinct from the event of Force Majeure described in that February 7th letter.
Section 3.1 of the Franchise Agreement states, in part:
"On and after the Commercial Operations Date, subject to the
terms and conditions of this Agreement, County shall sell to Franchisee
and deliver to the Delivery Point, and Franchisee shall purchase and take
at the Delivery Point 100% of Franchisee's requirements of County's
Landfill Gas as needed by Franchisee to operate Franchisee's Facilities,
but in no event more than 1,250 scfm."
G:80100\12corñIetterto ada county 051512
• Section 2.6 of the Franchise Agreement specifically contemplates that Franchisee's
Facilities will initially include an electric power plant including two Caterpillar low emission
engine-generator sets (3520's). As the County is aware, these Caterpillar engine-generator sets
each require at least 600 scfln of landfill gas to operate. It is, therefore, impossible to run both of
these engine-generator sets continuously at full output if the landfill gas from the Landfill to
Franchisee's Facilities falls below 1,200 scfm.
Franchisee has been made aware, through media reports, press releases issued by the
County and subsequent discussions with the County, that while the County and Franchisee were
actively negotiating the terms of the Franchise Agreement in 2011, the County separately
negotiated and entered into certain contractual arrangements with Dynamis Energy, LLC
("Dynamis"), whereby Dynamis was given the right to divert from the Landfill a minimum of
408 tons of municipal solid waste per day and up to 572 tons of municipal solid waste per day,
and to use such waste as fuel for a separate waste to energy facility generating electricity to be
sold to Idaho Power Company (the "Dynamis Project").
In addition, Franchisee has been advised by the County that the municipal solid waste to
be diverted to the [)ynamis Project will consist primarily of high levels of organic materials,
while the remaining waste being deposited into the Landfill (and ultimately decomposing into
Landfill Gas available to Franchisee's Facilities) will contain a lower concentration of organic
materials, thus generating significantly less Landfill Gas upon its anaerobic decomposition.
After learning of the Dynamis Project and the contractual rights to this municipal solid
waste granted to Dynainis by the County, Franchisee immediately commenced an internal
investigation to determine the potential effects of the Dynamis Project on the Franchisee's
Facilities. This internal investigation shows that the Dynamis Project (even at its minimum size
of 408 tons of municipal solid waste per day) will have the effect of permanently reducing
Landfill Gas from the Landfill to levels well below the 100% (or 1,250 scfrn) requirements
needed by the Franchisee's Facilities and that are required by the Agreement. This result would
be unaffected despite additional gas collection wells contemplated by the County.
Because of the significant uncertainty created by County's contractual arrangements with
Dynamis and the potential permanent reduction in the quantity of Landfill Gas to be delivered to
Franchisee's Facilities due solely to the Dynamis Project, Franchisee (1) is unable at this time to
commence construction of Franchisee's Facilities, (ii) cannot obtain the debt or equity financing
otherwise available to it to pay for the construction of Franchisee's Facilities, and (iii) hereby
notifies you that Franchisee is rendered unable to perform its obligation to construct Franchisee's
Facilities at this time because of the occurrence of a continuing event of Force Majeure. The
events described above regarding the impending insufficiency and inadequacy of Landfill Gas at
the Landfill due to the Dynamis Project have occurred through no fault of Franchisee, were
created solely by the actions of the County, were impossible to have been expected by
Franchisee and, as of this date, are impossible for Franchisee to overcome.
Nothing contained in this letter shall be deemed to (i) be a waiver by Franchisee of any of
its rights or remedies under the Franchise Agreement, or (ii) constitute a release, or waiver by
Franchisee of any present or future claims against the County arising under or with respect to the
G:\80100\12corr\letter to ada county 051512
Franchise Agreement. Without limiting the generality of the foregoing, Franchisee retains all
rights and causes of action it may have in respect of claims for breach of the Franchise
Agreement by the County due to the facts and circumstances described herein.
Very truly yours,
HIDDEN HOLLOW ENERGY 2 LL
Name: David Wentworth
Title: Senior Vice President
Cc: Ada County Operations Director
O:\80100\12corr\Ietter to ada county 051512
EXHIBIT E
ADA COUNTY
COMMISSIONERS
OFFICE
200W. Front Street, 3rd Floor
Boise, Idaho 83702
[phone]
Fax [phone]
bocci @adaweb.net
www.adaweh.net
June 7, 2012
David Wentworth, Senior Vice President
Hidden Hollow Energy 2 LLC
C/O Fortistar Methane Group
One North Lexington Ave
White Plains, NY 10601
RE: Landfill Gas Franchise Agreement
Dear Mr. Wentworth:
We have received your letter dated May 16, 2012. We must respectfully disagree
with Hidden Hollow Energy 2 LLC's (HHE2) claim made in HBE2's letter dated
February 7, 2012 that the increase in the concentration of hydrogen sulfide gas in
the County's Landfill Gas is an event of force majeure under the Landfill Gas
Franchise Agreement (Ada County Agreement No. 926 1) between HHE2 and Ada
County which prohibits HHE2 from installing 2 Caterpillar low emission
generators.
Second, we must also disagree with 1{HE2's new assertion in the May 16 0' letter
that the proposed Dynamis Project constitutes a separate new event of force
maj cure under the Franchise Agreement based on HHE2's claim that the Project
potentially reduces the availability of Landfill Gas below the amount needed to
run the 2 Caterpillar low emission generators under the Franchise Agreement.
The County, however, recognizes that it has a mutually beneficial and ongoing
relationship with Fortistar with the 2 Caterpillar generators currently operating
under the Amended and Restated Landfill Gas Franchise Agreement Between
Hidden Hollow Energy LLC and Ada County (Ada County Agreement No. 7311-
2-1 1). In light of this ongoing relationship, Ada County proposes that HHE2 and
the County mutually agree to cancel Landfill Gas Franchise Agreement (Ada
County Agreement No. 9261).
We look forward to your response and any further discussions necessary to resolve
the outstanding issues in our business relationship.
David Wentworth, Senior Vice President
June 7, 2012
Page 2
Be advised, however, that nothing contained in this letter shall be deemed a waiver
of any rights or remedies that the County has under the Landfill Gas Franchise
Agreement. Nothing contained in this letter shall be deemed to constitute a release
or waiver by the County of any present or future claims the County has against
HF]E2 arising under or with respect to the Landfill Gas Franchise Agreement. The
County expressly retains all of its rights and causes of action it may have with
respect to claims for breach of the Landfill Gas Franchise Agreement by HHE2's
actions.
Sin el
Rick Yzagu e, Chairman
Sharon M. Ullman, Commissioner
David L. Case, Commissioner
cc: Thomas J. Gesicki, Fortistar
Robert F. Dunbar, Esq., Fortistar
Arthur Hull Hayes III, Esq., Fortistar
EXHIBIT F
HIDDEN HOLLOW ENERGY 2 LLC
do Fortistar Methane Group LLC
One North Lexington Avenue • White Plains, New York 10601
Tel. [phone] • Fax. [phone]
June 11, 2012
Idaho Public Utilities Commission
472 W. Washington Street
Boise, Idaho 83702-5918
Attention: Commission Secretary
Re: Firm Energy Sales Agreement - Case No. IPC B-i 044
Dear Sirs and Madames:
We refer to the Firm Energy Sales Agreement between Idaho Power Company ("IPC")
and Hidden Hollow Energy 2 LLC ("Seller"), dated December 8, 2010 (as amended,
supplemented or otherwise modified, the "PPA"). Capitalized terms used in this letter without
definition have the meanings set forth in the PPA. The PPA was approved by the Idaho Public
Utilities Commission (the "Commission") on February 11, 2011 in Case No. IPC-E-10-44.
Several disputes between Seller and IPC have arisen under the PPA in connection with
the occurrence of two separate events of Force Majeure, each of which has prevented Seller from
performing under the PPA. These events involve (i) the inability to date of Seller to obtain an air
permit from the Idaho Department of Environmental Quality due to actions taken solely by Ada
County (the "County"), and (ii) the execution of certain contracts by the County, IPC and
Dynamis Energy, LLC, which Seller believes make it impossible for Seller to receive the
quantity and quality of fuel necessary to operate its electric generating facility at the Ada County
Landfill, as required by the Landfill Gas Franchise Agreement between Seller and the County.
IPC (i) has notified Seller that IPC rejects Seller's position that events of Force Majeure
exist, and (ii) has threatened to terminate the PPA and assess significant monetary delay
liquidated damages against Seller.
Section 19.1 of the PPA providàs that "All disputes related to or arising under this
Agreement, including, but not limited to, the interpretation of the terms and conditions of this
Agreement, will be submitted to the Commission for resolution". Thus, pursuant to Section 19.1
of the PPA, Seller hereby submits the aforementioned disputes to the Commission, and
respectfully requests the Commission's resolution of the same.
Under separate cover, Seller will supply the Commission with relevant documentation
relating to the disputes described above. Seller also requests from the Commission guidance as
to the Commission's evidentiary requirements, procedures and schedule for resolving the issues
outlined above.
G:\80100\12corAletter to Idaho PUC 0601112
If you have any questions regarding the foregoing, please contact either Arthur Hayes,
General Counsel of Seller (914-4214910 and [e-mail] ), or Stephen Thomas of
Moffatt Thomas Barrett Rock & Fields, Chtd. (208-345-2000 or [e-mail] ).
Very truly yours,
HIDDEN HOLLOW ENERGY 2 LLC
By: /Ah— IL t "e "~—
Name: Arthur Hull Hayes III -
Title: General Counsel
Cc: Idaho Power Company
Stephen Thomas, Esq.
G:\801 00\1 2corr\letter to Idaho PUC 0601112
*5
A
IUPJUii
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re: Case No. IPC-E-10-44
Hidden Hollow Energy 2 LLC Firm Energy Sales Agreement - Termination
of Agreement
Dear Ms. Jewell:
Please be advised that Idaho Power Company ("Idaho Power") has terminated
the Firm Energy Sales Agreement ("FESA") with Hidden Hollow Energy 2 LLC ("Hidden
Hollow") that was approved by the Idaho Public Utilities Commission ("Commission") in
Final Order No. 32180.
Enclosed please find the May 3, 2012, Notice of Failure to Meet the Scheduled
Operation Date in the Firm Energy Sales Agreement sent by Idaho Power to Hidden
Hollow. This Notice advised Hidden Hollow that It had failed to meet the required
Scheduled Operation Date of February 28, 2012, contained In theFESA. The Notice
further advised that if Hidden Hollow did not achieve an Operation Date by June 1,
2012, (within 90 days of the Scheduled Operation Date), that Delay Liquidated
Damages in the amount of $144,000 would be due and payable to Idaho Power, and
that Idaho Power may terminate the FESA at that time.
Also enclosed please find the June 14, 2012, Termination Notice from Idaho
Power to Hidden Hollow advising that Hidden Hollow has failed to achieve its Operation
Date within 90 days of the Scheduled Operation Date pursuant to its obligations
contained in the FESA, that the FESA is now terminated, and Delay Liquidated
Damages referenced above are now due and payable to Idaho Power. This Notice of
Termination also notifies Hidden Hollow that If payment in full of the Delay Liquidated
Damages is not received with 7 days, that Idaho Power will draw those funds from the
Delay Security provided by Hidden Hollow under the FESA.
1221W. Idaho 5t (83702)
P.O. Box 10
Boise, ID 83707
Joan D. Jewell
June 14, 2012
Page 2 of 2
This letter and its attachments are being sent to the Commission for Inclusion as
part of the Commission's file and record, evidencing the Notice and Termination of this
Commission-approved Firm Energy Sales Agreement.
Sincerely,
ason B. Williams
JBW:csb
Enclosures
cc: Kristine A. Sasser (wlenols.)
Rick Sterling (wiencls.)
IDAHO
PNER®
M IPACORP Company
May 3, 2012
Thomas J. Gesicki
Hidden Hollow Energy 2 LW
One North Lexington Avenue
White Plains, NY 10601
Original: Via Certified Mail, Return Receipt Requested
E-mail Copy: Law Staley - [e-mail]
Re: Hidden Hollow, Firm Energy Sales Agreement
February 7, 2012 Claim of an Event of Force Majeure
Notice of failure to meet Scheduled Operation Date
Dear Mr. Gesicki:
Idaho Power has received your letter dated February 7, 2012, in which you have claimed an event of Force
Majeuxe has occurred pursuant to the Firm Energy Sales Agreement (FESA) dated December 8, 2010.
Force Majeure is defined in the FESA as, "any cause beyond the control of the Seller or of Idaho Power
which, despite the exercise of due diligence, such Party is unable to prevent or overcome." FESA, Article
14,1. Force Majoure contemplates such things that were unforeseeable and outside of either parties control
such as "acts of Clod, tire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances,
earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the
Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been
expected to avoid and by exercise of due diligence, it shall be unable to overcome. Force Majeure does not
include short-term disruptions or curtailment of the Facility's fuel supply." The event of Force Majeure
must be an event which, "by the exercise of reasonable foresight such party could not reasonably have been
expected to avoid and by the exercise of due diligence, it shalt be unable to overcome."
The events described are disruptions in your fuel supply which do not constitute an event of Force Majeure
as defined in the FESA. Your letter states that landfill gas collected by the County contained hydrogen
sulfide at concentration levels higher than allowed by its existing permit, which led to loss of a permit and is
in the process of being rectified. The existence of the proper permitting and varying levels of hydrogen
sulfide are known, foreseeable, and anticipated issues in the operation of a landfill gas supplied generation
facility. An event of Force Majeure occurs when there is an event of effect that can neither be anticipated
nor controlled. Because your fuel supplier's air quality permit concerns are a foreseeable, anticipated
occurrence with this type of project and constitute a short-term disruption or curtailment of the fuel supply,
Idaho Power does not agree that an event of Force Majeure has occurred.
Furthermore, please be advised that you have passed your Scheduled Operation Date of February 28, 2012,
without bringing the project online and operational. Please let this letter service as notice that if you fail to
achieve the Operation Date by June 1, 2012, pursuant to Article 5.4 of the FESA, such failure is a Material
Bteach and Idaho Power may terminate the FESA at that time. Additionally, please be advised that if you
fail to achieve the Operation Data by June 1, 2012, Delay Liquidated Damages in the amount of $144,000
will be due and payable to Idaho Power pursuant to Article 5.3.2. If these Delay Damages are not paid
within seven days of Idaho Power's presentation of a billing for such amount, then pursuant to Aiiicic 5.5
Idaho Power will draw fluids from the Delay Security that you have provided
If you have any additional questions, please feel free to contact me.
Sincerely,
Randy C. Aliphin
Idaho Power Company
An tOACORP comifly
June 14, 2012
Hidden Hollow Energy 2 LLC
C/o Fortistar Methane Group LLC
Mn: David Wentworth
One North Lexington Avenue
White Plains, NY 1001
Original: Via Certified Mail, Return Receipt Requested
l?-mall Copy: Lew Staley staleyfortlstar.com
Thomas Gesicki tgesickl®forlstar.com
Re: Hidden Hollow Energy 2 LLC Firm Energy Sales Agreement
Notice of:
Termination of Finn Energy Sales Agreement
Collection of Delay Liquidated Damages
Dear Mr. Wentworth:
As Idaho Power advised in our letter dated May 3, 2012 to Mr. Gesicki, as of June 1, 2012 Hidden
Hollow Energy 2, LLC is in Material Breach of the Firm Energy Sales Agreement between Idaho Power and
Hidden Hollow Energy 2 LLC dated December 8, 2010 ("FESA").
This Material Breach is a result of the project failing to achieve its Operation Date within 90 days of
the Scheduled Operation Date of February 2012 and Article 5.4 of the FESA states that Idaho Power
may terminate this FESA at any time an result of this Material Breach. Therefore as of the date of this letter
this FESA has been terminated.
In addition as a result of the project failing to achieve its Operation Date Idaho Power is issuing this
request for payment of Delay Liquated Damages calculated pursuant to within Article 5.3. of the FESA to be
$144,000. As specified in Article 5.5 of the FESA the Seller must pay these Delay Liquidated Damages
within 7 days of when Idaho Power presents this billing to the Seller. Thus this payment in the amount of
$144,000 is due and payable to Idaho Power no later than 5:00 PM, Mountain Standard Time, June 21M,
2012. Failure to make this payment by that time will result in Idaho Power exercising it rights to draw funds
from the Delay Security provided by the project.
1
As you are aware, Hidden Hollow Energy 2 LLC has provided various documents to Idaho Power claiming
that a Force Majeure had occurred that prevented the project from achieving its Operation Date, Idaho
Power has denied all of these claims as these claims do not meet the criteria to be an event of Force Majeure
and/or they are specifically excluded from being a Force Majeure (i.e. Article 14.1 "...Force Majeure does
not include short-term disruptions or curtailment of the Facility's fuel supply")
If you have any additional questions, please feel free to contact me.
Sincerely,
/a€2'
Randy C. Aliphin
Idaho Power Company
-
Cc: Donovan Walker (LPCo)
Jason Williams (IPCo)
Hidden Hollow Energy 2 LLC
C/o Fortistar Methane Group LLC
Atm: Thomas J. Gesicki
One North Lexington Avenue
White Plains, NY 10601
1 II' U UULJJidol
IDAHO PNER
An IDACORP Company
June 14, 2012
Hidden Hollow Energy 2 LLC
C/o Fortistar Methane Group LLC
Attn: David Wentworth
One North Lexington Avenue
White Plains, NY 10601
Original: Via Certified Mail, Return Receipt Requested
E-mail Copy: Lew Staley [e-mail]
Thomas Gesicki [e-mail]
Re: Hidden Hollow Energy 2 LLC Firm Energy Sales. Agreement
Notice of:
Termination of Firm Energy Sales Agreement
Collection of Delay Liquidated Damages
Dear Mr. Wentworth:
As Idaho Power advised in our letter dated May 3, 2012 to Mr. Gesicki, as of June 1, 2012 Hidden
Hollow Energy 2, LLC is in Material Breach of the Firm Energy Sales Agreement between Idaho Power and
Hidden Hollow Energy 2 LLC dated December 8th, 2010 ("FESA").
This Material Breach is a result of the project failing to achieve its Operation Date within 90 days of
the Scheduled Operation Date of February 281h1, 2012 and Article 5,4 of the FESA states that Idaho Power
may terminate this FESA at any time as result of this Material Breach. Therefore as of the date of this letter
this FESA has been terminated.
In addition as a result of the project failing to achieve its Operation Date Idaho Power is issuing this
request for payment of Delay Liquated Damages calculated pursuant to within Article 5.3 of the FESA to be
$144,000. As specified in Article 5.5 of the FESA the Seller must pay these Delay Liquidated Damages
within 7 days of when Idaho Power presents this billing to the Seller. Thus this payment in the amount of
$144,000 is due and payable to Idaho Power no later than 5:00 PM, Mountain Standard Time, June
2012. Failure to make this payment by that time will result in Idaho Power exercising it rights to draw funds
from the Delay Security provided by the project.
As you are aware, Hidden Hollow Energy 2 LLC has provided various documents to Idaho Power claiming
that a Force Majeure had occurred that prevented the project from achieving its Operation Date. Idaho
Power has denied all of these claims as these claims do not meet the criteria to be an event of Force Majeure
and/or they are specifically excluded from being a Force Majeure (i.e. - Article 14.1 "...Force Majeure does
not include short-term disruptions or curtailment of the Facility's fuel supply")
If you have any additional questions, please feel free to contact me.
Sincerely,
Randy C. Allphin
Idaho Power Company
Cc: Donovan Walker (IPCo)
Jason Williams (JPCo)
Hidden Hollow Energy 2 LLC
C/o ForUstar Methane Group LLC
Attn: Thomas J. Gesicki
One North Lexington Avenue
White Plains, NY 10601
EXHIBIT I
e STATE OF IDAHO
DEPARTMENT OF 9444 ENVIRONMENTAL QUALITY
1410 North Hilton • Boise, Idaho 83706 • (208) 3730502 C, L. Butch Otter, Governor
Curt Fransen, Director
June 19, 2012
Suparna, Chakiadar, Senior Director, Environmental Services
Hidden Hollow Energy, LLC
5087 Junction Road
Lockport, New York 14075
RE: Facility ID No. 001-00214, Hidden Hollow Energy, LLC, Boise
Final Permit Letter
Dear Ms. Chakladar:
The Department of Environmental Quality (DEQ) is issuing Permit to Construct (PTC)
No. P-2009,0098 Project 60803 to Hidden Hollow Energy for the combined operations of Hidden Hollow
Energy I and 2 in Boise. This PTC is issued in accordance with IDAPA 58.01.01.200 through 228 (Rules
for the Control ofAir Pollution in Idaho) and is based on the certified information provided in your PTC
application received on December 16, 2010.
This permit is effective immediately and replaces PTC No. P-2009.0098, issued on March 1, 2010. This
permit does not release Hidden Hollow Energy from compliance with all other applicable federal, state, or
local laws, regulations, permits, or ordinances.
In order to understand fully the compliance requirements of this permit, DEQ highly recommends that
you schedule a meeting with JR Fuentes, Area Source Specialist, at [phone] to review and discuss
the terms and conditions of this permit. Should you choose to schedule this meeting, DEQ recommends
that the following representatives attend the meeting: your facility's plant manager, responsible official,
environmental contact, and any other staff responsible for day-to-day compliance with permit conditions.
Pursuant to IDAPA 58.01.23, you, as well as any other entity, may have the right to appeal this final
agency action within 35 days of the date of this decision. However, prior to filing a petition for a
contested case, I encourage you to contact Morrie Lewis at [phone] or
Morrie.Lewisdeq.idaho.gov to address any questions or concerns you may have with the enclosed
permit.
SrncerelY D
Mike Simon
Stationary Source Program Manager
Air Quality Division
MS\ML
Permit No. P-2009.0098 PROJ 60803
Enclosures
fe,d Pape,,
.)V:
Air Quality
PERMIT TO CONSTRUCT
Permittee Ridden Hollow Energy, LLC
Permit Number P-2009.0098
Project ID 60803
Facility ID 001-00214
Facility Location 1030O .Seamans Gulch, Boise, Idaho 83702
Permit Authority : I This permit (a is' in Idaho (Rules),
IDAPA 58.01.01.200-2 -, atedhy the state of
Idaho and to the sour_______ ly allowed to be con'- it; (c) has been
granted on the basi _______ information presented with i ____ affect the title of
the premises upo equip to be located e from any
liability for any dama r prop ting the
design, install ___ ____ _____ equip
permittee fro
ordinances; (__________ alit (DEQ)
or its office s'
damage to pe. Ii,
maintenance,
review in accordance 's it 200-228.
Date Issued ... June 19, 2012
•
Morrie Lewis, Permit Writer
Mike Simon, Stationary Source Manager
PERMIT TO CONSTRUCT SCOPE .3
FACILITY-WIDE CONDITIONS ............................................................................................................................4
HIDDEN HOLLOW ENERGY I ENGINES ..........................................................................................................15
HIDDEN HOLLOW ENERGY 2 ENGINES ..........................................................................................................18
PERMIT TO CONSTRUCT GENERAL PROVISIONS ........................................................................................ 24
P.2009.0098 PROJ 60803 Page 2
PERMIT TO CONSTRUCT SCOPE
Purpose
1.This is a revised permit to construct for a landfill gas-to-energy facility. The facility consists of the
landfill gas H2S Removal System, Hidden Hollow Energy I Engines, and Hidden Hollow Energy 2
Engines. Each of the engines utilizes treated landfill gas from the Ada County Landfill to drive a
1.6-megawatt (MW) generator.
2.This permit establishes emission limits, requirements to install and operate a hydrogen sulfide (H 2S)
landfill gas treatment system, and requirements for testing, monitoring, recordkeeping, and reporting.
3.Those permit conditions that have been modified or revised by this permitting action are identified by the
permit issuance date citation located directly under the permit condition and on the right hand margin.
4.This PTC replaces Permit to Construct No. P-2009.0098, issued on March 1, 2010.
5.The emission sources regulated by this permit are listed in the following table.
Table 1 REGULATED SOURCES
ontrol Control
Equipment
En inc No, 1 -__Cate illar 3520C,_2233 blip orequivalent(")
H2S Removal
System
Engine No. 2— Cate illar 3520C, 2233 bhp orequivalent(a)
Engine No. 3 - Caterpillar G3520C, 2233 bhp or equivalent
Engine No. 4—Caterpillar G3520C, 2233 blip or equivalent
cqwvwcu suuzscs utivv tin equavajenr or tess maximsin orae norsepower onp titan use source listed
in this table; "or equivalent' sources and control methods shall not result in an emission increase or in the
emission of any regulated air pollutant not previously emitted (using the definitions provided in
IDAPA 5801.01.006) when compared to the sources and control methods listed in this table.
Emissions will be controlled folbwing installation and commencement of operations of the 11 2S Removal
System.
b)
P-2009.0098 PROJ 60803
Page 3
FACILITY-WIDE CONDITIONS
Process Description
Hidden Hollow Energy LLC operates a landfill gas-to-energy facility utilizing landfill gas from the Ada
County Landfill as fuel for four engines to drive 1.6-megawatt (MW) generators. At 100% load, each of
the associated engines operates at 2233 brake horsepower (bhp). Hidden Hollow Energy 1, LLC
comprises Engine 1 and 2, while Hidden Hollow Energy 2, LLC comprises Engines 3 and 4. All fuel used
by each of these engines is obtained from the Ada County Landfill.
The landfill gas collected by the Ada County Landfill undergoes treatment prior to combustion in the
engines. The treatment process includes dewatering, compression, cooling, filtration, and hydrogen
sulfide (H2S) removal. Each of the four engines is a control device for the collected landfill gas (in
addition the flares operated by Ada County Landfill), and is therefore subject to 40 CFR Part 60, Subpart
WWW and Part 63, Subpart AAAA.
Emissions Units Control Equipment
Engine No I - Caterpillar 3520C, 2233 bhp or equivalentt"
1I2S Removal System : Engine No 2— Caterpillar 3520C, 2233 bhp or equivalent
Engine No. 3 - Caterpillar G3520C, 2233 blip or equivaIent
Engine No. _4—Caterpillar (13 520C,_2233_blip_or equivalent
a)Spark ignition (SI), reciprocating internal combustion engines (RICE).
b)"or equivalent" soirees have an equivalent or less maximun brake horsepower (bhp) than the source listed
in this table; "or equivalent" sources and control methods shall not result in an emission increase or in the
emission of any regulated airpollutant not previously emitted (using the definitions provided in
IDAPA 58.01.01.006) when compared to the sources and control methods listed in this table.
c)Emissions will be controlled folbwing installation and commencement of operations of the 1-12S Removal
System.
Emission Limits
6.CO Emission Limit
Combined carbon monoxide (CO) emissions from the four engines shall not exceed 249 tons per any
consecutive 12-month period.
16/19/12]
7.Hi.SOncentration Limit
After installation of the landfill gas H 2S Removal System, the H2S concentration of landfill gas
combusted in the engines shall not exceed 180 ppmv.
16/19/121
8.Submittal of Information for Ti Permit Application
Within 60 days of permit issuance, the permittee shall submit the requested Tier! operating permit
application information identified by DEQ in correspondence dated February 21, 2012.
16/19/12)
9.Opacity Limit
Emissions from the engine stacks, or any other stack, vent, or functionally equivalent opening associated
with engines, shall not exceed 20% opacity for a period or periods aggregating more than three minutes in
any 60-minute period as required by IDAPA 58.01.01.625. Opacity shall be determined by the procedures
contained in IDAPA 58.01.01.625.
P-2009.0098 PROJ 60803 Page 4
10.Odors
The permittee shall not allow, suffer, cause, or permit the emission of odorous gasses, liquids, or solids to
the atmosphere in such quantities as to cause air pollution in accordance with IDAPA 58.01.01.776.01.
[6/19/12J
Operating Requirements
11.ingjncPpeiotj and Maintenance
The permittee shall operate and maintain the engines in a manner consistent with the manufacturer's
recommendations.
[3/1/101
12.Allowable Fuel
The engines shall burn landfill gas only.
13/1/101
13.jS Removal System
The landfill gas H2S Removal System shall be installed and commence operation no later than 180 days
after permit issuance. The H2S Removal System shall meet the following requirements:
• The H2S concentration of the landfill gas exiting the 112S Removal System, prior to being combusted
in the engines, shall not exceed the H 2S Concentration Limit (Permit Condition 7).
• The system shall be capable of treating a minimum of 3,350 scfln of landfill gas.
• The system shall be operated by the permittee at all times that landfill gas is combusted in the landfill
gas control devices (i.e., flare and internal combustion engines), except for periods of startup,
shutdown, scheduled maintenance, safety measures, upset, and breakdown afforded by and
determined to comply with the requirements appearing under IDAPA 58.01.01.130-136.
• At least 60 days prior to commencing construction of the landfill gas H 2S Removal System, the
penn ittee shall submit a Permit to Construct application for a permit revision to DEQ in order to
incorporate permit conditions relevant to the landfill gas H 2S Removal System design and operational
parameters, operating and maintenance procedures, and relevant monitoring, recordkeeping, and
reporting requirements.
[6/19112J
14.NSPS 40 CFR 60, Subpart WWW -Standards for Air Emissions from Municipal Solid Waste Landfills
The pennittee shall route all the collected landfill gas to a control system that complies with the
requirements in either 40 CFR 60.752(b)(2)(iii)(A), (B) or (C):
• A control system designed and operated to either reduce noninethane organic compounds (NMOC) by
98 weight percent or reduce the outlet NMOC concentration to less than 20 parts per million by
volume, dry basis (ppmvd) as hexane at 3 percent oxygen. The reduction efficiency or parts per
million by volume shall be established by an initial performance test to be completed no later than
1, 80 days after the initial startup of the approved control system using the test methods specified in 40
CFR 60.754(d).
' The control device shall be operated within the parameter ranges established during the initial or
most recent performance test. The operating parameters to be monitored are specified in 40 CFR
60.756 (Permit Condition 16).
P-2009.0098 PROJ 60803 Page
• Route the collected gas to a treatment system that processes the collected gas for subsequent sale or
use. All emissions from any atmospheric vent from the gas treatment system shall be subject to the
requirements above.
• Operate the collection and control device installed to comply with this subpart in accordance with the
provisions of 40 CFR 60.753, 60.755 and 60.756.
[6/19/121
15.NSPS 40 CFR 60, Subpart WWW - Operational Standards for Collection and Control Systems
• In accordance with 40 CFR 60.753(e), the permittee shall operate the landfill gas collection and
control system such that all collected gases are vented to a control system designed and operated in
compliance with 40 CFR 60.752(b)(2)(iii) (Permit Condition 14). In the event the collection or
control system is inoperable, the gas mover system shall be shut down and all valves in the collection
and control system contributing to venting of the gas to the atmosphere shall be closed within 1 hour.
• In accordance with 40 CFR 60.753(1), the permittee shall operate the control or treatment system at
all times when the collected gas is routed to the system.
16/19/12]
16.NSPS 40 CFR 60, Subpart WWW - Monitoring of Operations
The permittee shall install, calibrate, maintain, and operate according to the manufacturer's specifications,
the following equipment in accordance with 40 CFR 60.756(b):
• A temperature monitoring device equipped with a continuous recorder and having a minimum
accuracy of ±1 percent of the temperature being measured expressed in degrees Celsius or ±0.5
degrees Celsius, whichever is greater.
• A device that records gas flow rate to the control device. The device shall record the flow to the
control device at least every 15 minutes.
16/19/121
17.NESHAP 40 CFR 63, Subpart AAAA - Develop a Startup. Shutdown and Malfunction Plan (SSM)
In accordance with 40 CFR 63.1960, the permittee shall develop a written SSM plan for the landfill gas
treatment system according to the provisions in 40 CFR 63.6(e)(3).
• The permittee shall develop a written startup, shutdown, and malfunction plan that describes, in
detail, procedures for operating and maintaining the source during periods of startup, shutdown, and
malfunction; and a program of corrective action for malfunctioning process, air pollution control, and
monitoring equipment used to comply with the relevant standard. The startup, shutdown, and
malfunction plan does not need to address any scenario that would not cause the source to exceed an
applicable emission limitation in the relevant standard. This plan must be developed by the owner or
operator by the source's compliance date for that relevant standard. The purpose of the startup,
shutdown, and malfunction plan is to-
• Ensure that, at all times, the owner or operator operates and maintains each affected source,
including associated air pollution control and monitoring equipment, in a manner which satisfies
the general duty to minimize emissions established by 40 CFR 63.6(e)(1)(i);
• Ensure that owners or operators are prepared to correct malfunctions as soon as practicable after
their occurrence in order to minimize excess emissions of hazardous air pollutants; and
• Reduce the reporting burden associated with periods of startup, shutdown, and malfunction
(including corrective action taken to restore malfunctioning process and air pollution control
equipment to its normal or usual manner of operation).
P-2009.0098 PROJ 60803 Page 6
To satisfy the requirements to develop a startup, shutdown, and malfunction plan, the owner or
operator may use the affected source's standard operating procedures (SOP) manual, or an
Occupational Safety and Health Administration (OSHA) or other plan, provided the alternative plans
meet all the requirements and are made available for inspection or submitted when requested by the
DEQ.
[3/1/101
18.NESHAP 40 CFR 63, Subpart AAAA - Operation and Maintenance Requirements
In accordance with 40 CFR 63.6 (e)(l), the permittee must meet the following operation and maintenance
requirements for the landfill gas treatment system:
At all times, including periods of startup, shutdown, and malfunction, the owner or operator must
operate and maintain any affected source, including associated air pollution control equipment and
monitoring equipment, in a manner consistent with safety and good air pollution control practices for
minimizing emissions. During a period of startup, shutdown, or malfunction, this general duty to
minimize emissions requires that the owner or operator reduce emissions from the affected source to
the greatest extent which is consistent with safety and good air pollution control practices. The
general duty to minimize emissions during a period of startup, shutdown, or malfunction does not
require the owner or operator to achieve emission levels that would be required by the applicable
standard at other times if this is not consistent with safety and good air pollution control practices, nor
does it require the owner or operator to make any further efforts to reduce emissions if levels required
by the applicable standard have been achieved. Determination of whether such operation and
maintenance procedures are being used will be based on information available to the Administrator
which may include, but is not limited to, monitoring results, review of operation and maintenance
procedures (including the startup, shutdown, and malfunction plan required in 40 CFR 63.6(e)(3)),
review of operation and maintenance records, and inspection of the source.
• Malfunctions must be corrected as soon as practicable after their occurrence. To the extent that an
unexpected event arises during a startup, shutdown, or malfunction, an owner or operator must
comply by minimizing emissions during such a startup, shutdown, and malfunction event consistent
with safety and good air pollution control practices.
• Operation and maintenance requirements established pursuant to section 112 of the Act are
enforceable independent of emissions limitations or other requirements in relevant standards.
13/1/101
Performance Testing Requirements
19.CO Performance Testing
• Hidden Hollow Energy 1
An initial performance test shall be conducted in accordance with the procedures specified in NSPS
Subpart JJJJ (Permit Conditions 51 through 53). The results of this test shall be used to establish CO
emission factors in pounds per million British Thermal Unit (lb/MlVIBtu) for engines 1 and 2. The
most recent test results for each engine shall be used to calculate annual CO emissions to determine
compliance with the CO Emission Limit (Permit Condition 6).
Subsequent testing to verify and re-establish the CO emission factors shall occur at least once every
three years.
• Hidden Hollow Energy 2
An initial performance test shall be conducted in accordance with the procedures specified in NSPS
Subpart JJJJ (Permit Conditions 51 through 53).
P-2009.0098 PROJ 60803 Page 7
The results of this test shall be used to establish CO emission factors in pounds per million British
Thermal Unit (lb/MMBtu) for engines 3 and 4. The most recent test results for each engine shall be
used to calculate annual CO emissions to determine compliance with the CO Emission Limit (Permit
Condition 6).
Subsequent testing to verify and re-establish the CO emission factors shall occur at least once every
three years.
16/19/121
20.NSPS 40 CFR 60, Subpart WWW - Test Methods and Procedures
In accordance with 40 CFR 60.754(d), for the performance test required in 40 CFR 60.752(b)(2)(iii)(B)
(Permit Condition 14), Method 25, 25C, or Method 18 of Appendix A of 40 CFR 60 must be used to
determine compliance with the 98 weight-percent efficiency or the 20 ppmv outlet concentration level,
unless another method to demonstrate compliance has been approved by the Administrator as provided by
40 CFR 60.752(b)(2)(i)(B). Method 3 or 3A shall be used to determine oxygen for correcting the NMOC
concentration as hexane to 3 percent. In cases where the outlet concentration is less than 50 ppm NMOC
as carbon (8 ppm NMOC as hexane), Method 25A should be used in place of .Method 25. if using
Method 18 of appendix A of this part, the minimum list of compounds to be tested shall be those
published in the most recent Compilation of Air Pollutant Emission Factors (AP-42). The following
equation shall be used to calculate efficiency:
Control Efficiency = (NMOCI - NM000) / (NMOCm)
Where,
NMOCm = mass of NMOC entering control device
NM000 = mass of NMOC exiting control device
16/19/121
Monitoring and Recordkeeping Requirements
21.Odor Complaints
The permittee shall maintain records of all odor complaints received. If the complaint has merit, the
permittee shall take appropriate corrective action as expeditiously as practicable. The records shall
include, at a minimum, the date each complaint was received and a description of the following: the
complaint, the permittee's assessment of the validity of the complaint, any corrective action taken, and the
date the corrective action was taken.
16/19/121
22.CO Emissions Monitoring
CO emission factors established during CO Performance Testing (Permit Condition 19) shall be used as
part of the compliance demonstration calculation for the CO Emission Limit (Permit Condition 6).
The methane content of the landfill gas shall be monitored and recorded daily. These records shall be used
as part of the monthly MMBtu calculation.
On a monthly basis, the permittee shall calculate and record CO emissions from each of the four engines
according to the following equation:
lb/MMBtu * MMBtu/month + 2000 lb/T = T/month
P2009.0098 PROJ 60803 Page 8
On a monthly basis, CO emissions from the four engines shall be summed together for that month and for
the previous 11 months. The total monthly CO emissions and cumulative 12 consecutive month CO
emissions shall be calculated and recorded in tons per month (T/mo) and in tons per year (T/yr). Each
calculated 12-month CO emissions shall be used to assess excess emissions (Permit Condition 67) for the
CO Emission Limit (Permit Condition 6).
Records of the calculations shall be maintained in accordance with the Recordkeeping General Provision.
[6/19/121
23.HS Concentration Monitoring
The permittee shall determine the H 2S concentration, in ppmv, of the landfill gas stream prior to being
combusted in the engines. Each H 2S concentration shall be calculated as the average of three consecutive
112S sample measurements obtained within a fifteen-minute period.
Each calculated 11 2S concentration shall be used to assess excess emissions (Permit Condition 67) for the
112S Concentration Limit (Permit Condition 7). An excess emission occurs each unit operating hour
included in the period beginning on the date and hour for which the H 2S concentration of the landfill gas
being fired in any engine exceeds the H 2S Concentration Limit (Permit Condition 7) and ending on the
date and hour that a subsequent sample is taken that demonstrates compliance with the H 2S Concentration
Limit (Permit Condition 7).
[6119/12]
24.H2S Concentration Monitoring Schedule
Each H.2S concentration shall be determined as described in the H 2S Concentration Monitoring
requirement (Permit Condition 23). H 2S concentration monitoring shall be conducted according to the
following schedule:
• Beginning 45 days after permit issuance, and beginning on the day following commencement of
operations of the landfill gas H 2S Removal System, the permittee shall monitor 11 2S concentration on
at least a daily basis.
• If calculated 11 2S concentrations do not exceed the 142S Concentration Limit (Permit Condition 7) for
at least five consecutive business days, required H 2S monitoring shall be reduced to a frequency of
once per week.
• If calculated H2S concentrations do not exceed the 11 2S Concentration Limit (Permit Condition 7) for
at least four consecutive weeks, required 11 2S monitoring shall be reduced to a frequency of once
every two weeks.
• At any time a H2S measurement exceeds the H 2S Concentration Limit (Permit Condition 7), H 2S
monitoring shall revert to at least a daily basis and applicable excess emissions shall be assessed
(Permit Conditions 23 and 67). After monitoring daily for at least five consecutive business days,
subsequent H2S measurements may be applied toward reducing the required monitoring frequency in
the manner described above.
[6/19/12]
25.lIzS Concentration Recordkeening
On a daily basis, the permittee shall record each calculated H 2S concentration and each H2S sample
measurement to ensure compliance with the 112S Concentration Monitoring requirement (Permit
Condition 23).
The monitor used to measure the 112S concentration Of the landfill gas stream shall have a certified
accuracy of plus or minus 5%. The monitor shall be calibrated and maintained in accordance with
manufacturer specifications.
P-2009.0098 PROJ 60803 Page 9
Records of this information shall be maintained in accordance with the Recordkeeping General Provision
(Permit Condition 66).
[6/19/12]
26.Gas Flow Rate Monitoring
Each time the 112S concentration is monitored and recorded, the flow rate of the landfill gas used in the
engines shall also be monitored and recorded in standard cubic feet per minute (scfm).
[6/19/12J
27.H2S Reporting Requirements
H2S concentrations and gas flow rates shall be submitted to Idaho DEQ each month beginning on the first
of the month following permit issuance.
(6/19112J
28.NSPS 40 CFR 60, Subpart WWW - Recordkeeping Requirements
• In accordance with 40 CFR 60.758(b), the permittee shall keep up-to-date, readily accessible records
for the life of the control equipment of the data listed in paragraphs 40 CFR 60.758(bXl) through
(b)(4) as measured during the initial performance test or compliance determination. Records of
subsequent tests or monitoring shall be maintained for a minimum of 5 years. Records of the control
device vendor specifications shall be maintained until removal.
The average combustion temperature measured at least every 15 minutes and averaged over the
same time period of the performance test.
• The percent reduction of NMOC determined as specified in §60.752(b)(2)(iii)(B) achieved by the
control device.
• In accordance with 40 CFR 60.758(c), the permittee shall keep for 5 years up-to-date, readily
accessible continuous records of the equipment operating parameters specified to be monitored in 40
CFR 60.756 (Permit Condition 16) as well as up-to-date, readily accessible records for periods of
operation during which the parameter boundaries established during the most recent performance test
are exceeded.
• All 3-hour periods of operation during which the average combustion temperature was more than
28 °C below the average combustion temperature during the most recent performance test at
which compliance with 40 CFR 60.752(b)(2)(iii) was determined constitute exceedances that
shall be recorded and reported under 40 CFR 60.757(f).
• The permittee shall keep up-to-date, readily accessible continuous records of the indication of
flow to the control device or the indication of bypass flow or records of monthly inspections of
car-seals or lock-and-key configurations used to seal bypass lines, specified under 40 CFR
60.756.
• In accordance with 40 CFR 60.758(e), the permittee shall keep for at least 5 years up-to-date, readily
accessible records of all collection and control system exceedances of the operational standards in 40
CFR 60.753, the reading in the subsequent month whether or not the second reading is an exceedance,
and the location of each exceedance.
[6/19/121
29.NESHAP 40 CFR 63, Subpart AAAA - Recordkeeping of SSM event
In accordance with 40 CFR 63.6 (e)(3), the permittee shall comply with the following recordkeeping
requirements for the landfill gas treatment system:
P-2009.0098 PROJ 60803 Page 10
When actions taken by the owner or operator during a startup or shutdown (and the startup or
shutdown causes the source to exceed any applicable emission limitation in the relevant emission
standards), or malfunction (including actions taken to correct a malfunction) are consistent with the
procedures specified in the affected source's startup, shutdown, and malfunction plan, the owner or
operator must keep records for that event which demonstrate that the procedures specified in the plan
were followed.
These records may take the form of a "checklist," or other effective form of recordkeeping that
confirms conformance with the startup, shutdown, and malfunction plan and describes the actions
taken for that event.
• In addition, the permittee shall keep records of these events as specified in paragraph 63.10(b),
including records of the occurrence and duration of each startup or shutdown (if the startup or
shutdown causes the source to exceed any applicable emission limitation in the relevant emission
standards), or malfunction of operation and each malfunction of the air pollution control and
monitoring equipment.
• Furthermore, the permittee shall confirm that actions taken during the relevant reporting period
during periods of startup, shutdown, and malfunction were consistent with the affected source's
startup, shutdown and malfunction plan in the semiannual (or more frequent) startup, shutdown,
and malfunction report required in 40 CFR 63.1 0(d)(5).
If an action taken by the permittee during a startup, shutdown, or malfunction (including an action
taken to correct a malfunction) is not consistent with the procedures specified in the affected source's
startup, shutdown, and malfunction plan, and the source exceeds any applicable emission limitation in
the relevant emission standard, then the owner or operator must record the actions taken for that event
and must report such actions within 2 working days after commencing actions inconsistent with the
plan, followed by a letter within 7 working days after the end of the event, in accordance with 40 CFR
63.1 0(d)(5) (unless the owner or operator makes alternative reporting arrangements, in advance, with
the Administrator).
[3/1/10]
30. NES}{AP 40 CFR 63, Subpart AAAA SSM Plan Maintenance
In accordance with 40 CFR 63.6 (e)(3)(v), the permittee shall comply with the following recordkeeping
requirements for the landfill gas treatment system:
• The permittee shall maintain at the affected source a current startup, shutdown, and malfunction plan
and must make the plan available upon request for inspection and copying by the Administrator.
• In addition, if the startup, shutdown, and malfunction plan is subsequently revised as provided in 40
CFR 63.6(e)(3)(viii), the owner or operator must maintain at the affected source each previous (i.e.,
superseded) version of the startup, shutdown, and malfunction plan, and must make each such
previous version available for inspection and copying by the Administrator for a period of 5 years
after revision of the plan.
• If at any time after adoption of a startup, shutdown, and malfunction plan the affected source ceases
operation or is otherwise no longer subject to the provisions of this part, the owner or operator must
retain a copy of the most recent plan for 5 years from the date the source ceases operation or is no
longer subject to this part and must make the plan available upon request for inspection and copying
by the Administrator.
• The Administrator may at any time request in writing that the owner or operator submit a copy of any
startup, shutdown, and malfunction plan (or a portion thereof) which is maintained at the affected
source or in the possession of the owner or operator.
P2009.0098 PROJ 60803 Page 11
• Upon receipt of such a request, the owner or operator must promptly submit a copy of the
requested plan (or a portion thereof) to the Administrator.
• The owner or operator may elect to submit the required copy of any startup, shutdown, and
malfunction plan to the Administrator in an electronic format. If the owner or operator claims that
any portion of such a startup, shutdown, and malfunction plan is confidential business
information entitled to protection from disclosure under section 114(c) of the Act or 40
CFR 2301, the material that is claimed as confidential must be clearly designated in the
submission.
[3/1/101
31.NESHAP 40 CFR 63, Subpart AAAA -SSM Plan Revisions by Administrator
In accordance with 40 CFR 63.6 (e)(3)(vii), the perniittee shall comply with the following recordkeeping
requirements for the landfill gas treatment system:
• Based on the results of a determination made under 40 CFR 63 .6(e)( 1 )(i), the Administrator may
require that an owner or operator of an affected source make changes to the startup, shutdown, and
malfunction plan for that source. The Administrator must require appropriate revisions to a startup,
shutdown, and malfunction plan, if the Administrator finds that the plan:
• Does not address a startup, shutdown, or malfunction event that has occurred;
• Fails to provide for the operation of the source (including associated air pollution control and
monitoring equipment) during a startup, shutdown, or malfunction event in a manner consistent
with the general duty to minimize emissions established by paragraph 40 CFR 63.6(e)(1)(i);
• Does not provide adequate procedures for correcting malfunctioning process and/or air pollution
control and monitoring equipment as quickly as practicable; or
• Includes an event that does not meet the definition of startup, shutdown, or malfunction listed in
40 CFR 63.2.
13/1/10]
32.NESHAP 40 CFR 63, Subpart AAAA - SSM Plan Revisions by Pennittee
In accordance with 40 CFR 63.6 (e)(3)(viii), the permittee shall comply with the following recordkeeping
requirements for the landfill gas treatment system:
• The permittee may periodically revise the startup, shutdown, and malfunction plan for the affected
source as necessary to satisfy the requirements of this part or to reflect changes in equipment or
procedures at the affected source.
• Unless the permitting authority provides otherwise, the owner or operator may make such revisions to
the startup, shutdown, and malfunction plan without prior approval by the Administrator or the
permitting authority.
• However, each such revision to a startup, shutdown, and malfunction plan must be reported in the
semiannual report required by 40 CFR 63.1 0(dX5).
• If the startup, shutdown, and malfunction plan fails to address or inadequately addresses an event that
meets the characteristics of a malfunction but was not included in the startup, shutdown, and
malfunction plan at the time the owner or operator developed the plan, the owner or operator must
revise the startup, shutdown, and malfunction plan within 45 days after the event to include detailed
procedures for operating and maintaining the source during similar malfunction events and a program
of corrective action for similar malfunctions of process or air pollution control and monitoring
equipment.
P-2009.0098 PROJ 60803 Page 12
• In the event that the permittec makes any revision to the startup, shutdown, and malfunction plan
which alters the scope of the activities at the source which are deemed to be a startup, shutdown, or
malfunction, or otherwise modifies the applicability of any emission limit, work practice requirement,
or other requirement in a standard established under this part, the revised plan shall not take effect
until after the owner or operator has provided a written notice describing the revision to the
permitting authority.
13/1/101
33.NESHAP 40 CFR 63, Subpart AAAA - Records and Reports
In accordance with 40 CFR 63.1980, the permittee shall comply with the general provisions of 40 CFR 60
and 63 that are related to the SSM plan and plan reports for the landfill gas treatment system.
Part 63 Citation Description
§63.2 Definitions
*63.6(e) Operation and maintenance requirements, startup, shutdown and malfunction plan provisions
§63. 10(b)(2)(i)-(v) General recordkeeping requirements
§63.10(d)(5) If actions taken during a startup, shutdown and malfunction plan are consistent with the procedures in the
startup, shutdown and malfunction plan, this information shall be included in a semi-annual startup, shutdown
and malfunction plan report. Any time an action taken during a startup, shutdown and malfunction plan is not
consistent with the startup, shutdown and malfunction plan, the source shall report actions taken within 2
working days after commencing such actions, followed by a letter 7 days after the event
General Provision Citation Subject of Citation Applies to Subpart
§60.1 General applicability of the General Provisions Yes
§60.2 Definitions Yes
§60.3 Units and abbreviations Yes
§60.4 Address Yes
§60.7 Notification and Recordkeeping Yes
*60.11 Compliance with standards and maintenance requirements Yes
§60.19 General notification and reporting requirements Yes
[3/1/101
Reporting Requirements
34.NSPS 40 CFR 60, Subpart WWW - Reporting Requirements
The permittee shall submit an equipment removal report to the Administrator 30 days prior to removal or
cessation of operation of the control equipment in accordance with 40 CFR 60.757(e).
16/19/121
35, Reporting Address
Any notifications or reporting required by 40 CFR 60 Subpart JJJJ or 40 CFR 63 Subpart ZZZZ shall be
submitted to both of the following addresses:
EPA Region 10
Director, Office of Air Quality
1200 Sixth Avenue
(OAQ-1 07)
Seattle, WA 98101
P-2009.0098 PROJ 60803 Page 13
and,
Air Quality Permit Compliance
Department of Environmental Quality
Boise Regional Office
1.445 N. Orchard St.
Boise, ID 83706
Phone: [phone]
Fax: [phone]
[3/1/10]
Incorporation of Federal Requirements by Reference
36. Unless expressly provided otherwise, any reference in this permit to any document identified in IDAPA
58.01.01.107.03 shall constitute the full incorporation into this permit of that document for the purposes
of the reference, including any notes and appendices therein. Documents include, but are not limited to:
• Applicable requirements of Standards of Performance for New Stationary Sources (NSPS), 40 CFR
Part 60
• Applicable requirements of National Emission Standards for Hazardous Air Pollutants (NESHAP),
40 CFR Part 63
For permit conditions referencing or cited in accordance with any document incorporated by reference
(including permit conditions identified as NSPS and NESITAP), should there be any conflict between the
requirements of the permit condition and the requirements of the document, the requirements of the
document shall govern, including any amendments to that document.
[6/19/12]
P-2009.0098 PROJ 60803 Page 14
HIDDEN HOLLOW ENERGY I ENGINES
Emissions Units and Control Equipment
The Hidden Hollow Energy I Engines consist of two Caterpillar 3520C spark-ignition internal
combustion engines (Engines 1 and 2). The two engines were manufactured prior to June 12, 2006.
Therefore, each engine is subject to NESHAP 40 CFR 63, Subpart ZZZZ requirements. These engines are
enclosed combustion control devices when combusting landfill gas, subject to the requirements of NSPS
40 CFR Part 60, Subpart WWW and Part 63, Subpart AAAA (refer to the Facility-Wide Conditions
section for additional requirements).
Emissions Units Control Equipment
Engine No. 1 - Caterpillar 3520C, 2233 bhp or euivaknt 112S Removal System Engine No. 2— Catei1lar 3520C, 2233 bhp or eguiva1ent
a)"or equivalent" sources have an equivalent or less maxitnumbrake horsepower (blip) than the source listed
in this table; "or equivalent' sources and control methods shall not result in an emission increase or in the
emission of any regulated air pollutant not previously emitted (using the definitions provided in
IDAPA 58.01.01,006) when compared to the sources and control methods listed in this table.
b)Emissions will be controlled folbwing installation and commencement of operations of the H,S Removal
System,
37.NESHAP 40 CFR 63, Subpart ZZZZ - Compliance Date
In accordance with 40 CFR 63.6595(a)(1), the affected source must comply with the applicable emission
and operating limitations of the National Emissions Standards for Hazardous Air Pollutants for Stationary
Reciprocating Internal Combustion Engines, 40 CFR 63, Subpart ZZZZ, by October 19, 2013.
16/19/121
Operating Requirements
38.NESHAP 40 CFR 63, Subpart ZZZZ - Emissions and Operating Limitations
In accordance with 40 CFR 63.6603(a), on and after October 19, 2013, the following emission limits or
operating restrictions are required for the engine. The permittee must meet the following requirements,
except during periods of startup.
• Change oil and filter every 1,440 hours of operation or annually, whichever comes first.
Inspect spark plugs every 1,440 hours of operation or annually, whichever comes first.
Inspect all hoses and belts every 1,440 hours of operation or annually, whichever comes first, and
replace as necessary.
[6/19/12]
39.NESJIAP 40 CFR 63, Subpart ZZZZ - General Compliance
On and after October 19, 2013, the permittee shall operate and maintain the engines and associated
pollution control equipment (where applicable) in a manner that minimizes emissions in accordance with
40 CFR 63 .6605.
(6/19/121
40.NESHAP 40 CFR 63, Subpart ZZZZ General Maintenance
In accordance with 63.6625(e)(6) and Table 6 of the Subpart, on and after October 19, 2013, the permittee
must operate and maintain the stationary RICE and after-treatment control device (if any) according to the
manufacturer's emission-related written instructions or develop your own maintenance plan which must
provide to the extent practicable for the maintenance and operation of the engine in a manner consistent
with good air pollution control practice for minimizing emissions.
P-2009.0098 PROJ 60803 Page 15
[6/19/121
41.NESHAP 40 CFR 63, Subpart ZZZZ -Engine Startup
On and after October 19, 2013, the engine's time spent at idle during startup shall be minimized to a
period needed for appropriate and safe loading of the engine, but not to exceed 30 minutes, after which
time the emission standards associated with this permit apply in accordance with 40 CFR 63.6625(h).
[6/19/12]
42.NESHAP 40 CFR 63, Subpart ZZZZ - Alternative Maintenance Program
In accordance with 40 CFR 63.66250), on and after October 19, 2013, the permittee has the option of
utilizing an oil analysis program in order to extend the specified oil change requirement in Emissions and
Operating Limitations permit condition. The oil analysis must be performed at the same frequency
specified for changing the oil. The analysis program must analyze at a minimum the following three
parameters: Total Acid Number, viscosity, and percent water content. The condemning limits for these
parameters are as follows: Total Acid Number increases by more than 3.0 milligrams of potassium
hydroxide (KOH) per gram from Total Acid Number of the oil when new; viscosity of the oil has changed
by more than 20 percent from the viscosity of the oil when new; or percent water content (by volume) is
greater than 0.5. If all of these condemning limits are not exceeded, the engine owner or operator is not
required to change the oil. If any of the limits are exceeded, the engine owner or operator must change the
oil within 2 days of receiving the results of the analysis; if the engine is not in operation when the results
of the analysis are received, the engine owner or operator must change the oil within 2 days or before
commencing operation, whichever is later. The owner or operator must keep records of the parameters
that are analyzed as part of the program, the results of the analysis, and the oil changes for the engine. The
analysis program must be part of the maintenance plan for the engine.
[6/19112j
Monitoring and Recordkeeping Requirements
43.NESHAP 40 CFR 63, Subpart ZZZZ —Reportinjpf Non-Compliance
In accordance with 40 CFR 63.6640(e), on and after October 19, 2013, the pormittee shall report any
instance when applicable General Provisions of 40 CFR 63, Subpart A are not being met.
[6/19/12]
44.NESIIAP 40 CFR 63, Subpart ZZZZ - Recordkeeping Requirements
In accordance with 40 CFR 63.6655, on and after October 19, 2013, the following records must be kept
onsite:
• A copy of each notification and report that was submitted
• Occurrence and duration of each malfunction of operation, control equipment and monitoring
equipment
• All required maintenance on the engine(s), control and monitoring equipment
• Corrective Action taken
All records shall be readily accessible in hard copy or electronic form for a minimum of five (5) years
after the date of each occurrence, measurement, maintenance procedure, corrective action or report in
accordance with 40 CFR 63.6660
16/19/121
P2009.0098 PROJ 60803 Page 16
45. NESHAP 40 CFR 63, Subpart ZZZZ - Record Retention
In accordance with 40 CFR 63.6655(e), the permittee must keep records of the maintenance conducted on
the stationary RICE in order to demonstrate that you operated and maintained the stationary RICE and
after-treatment control device (if any) according to your own maintenance plan if you own or operate any
of the following RICE; an existing stationary RICE located at an area source of HAP emissions subject to
management practices as shown in Table 2d to this subpart.
16/19/12]
P-2009.0098 PROJ 60803 Page 17
I l *
Emissions Units and Control Equipment
The Hidden Hollow Energy 2 Engines consist of two Caterpillar (33 520C spark-ignition internal
combustion engines (Engines 3 and 4). The two engines were manufactured on July 1, 2010. Therefore,
each engine is subject to NESHAP 40 CFR 60, Subpart JJJJ requirements. These engines are enclosed
combustion control devices when combusting landfill gas, subject to the requirements of NSPS 40 CFR
Part 60, Subpart WWW and Part 63, Subpart AAAA (refer to the Facility-Wide Conditions section for
additional requirements).
Emissions Units Control Equipment
No 3 - Caterpillar G3520C, 2233 blip or equivalent 1€12S Removal System 1 Engine
Engine No: 4— Caterpillar G3 520C, 2233 bhp or eguivalent
a)"or equivalent" sources have an equivalent or less maximumbrake horsepower (blip) than the source listed
in this table; "or equivalent' sources and control methods shall not result in an emission increase or in the
emission of any regulated air pollutant not previously emitted (using the definitions provided in
IDAPA 58.01.01.006) when compared to the sources and control methods listed in this table.
b)Emissions will be controlled folbwing installation and commencement of operations of the 1 -ES Removal
System.
Emission Limits
46. NSPS 40 CFR 60, Subpart JJJJ - Emissions Standards
In accordance with 40 CFR 60.4233, the permittee must comply with the emission standards in Table I to
this subpart for their stationary SI ICE.
Table ito Subpart JJJJ of Part 60—NO, CO, and VOC Emission Standards for Stationary Non-Emergency Si Engines ?1.00 lip
Engine type and fuel
Maximum engine
power
Manufacture
date
Emission Stand nrds (a)
g/hp-hr ppmvd at 15% O
N0 CO VOC N0 CO VOC Landfill/Digester Gas hp—>500 7/1/2010 2.0 5.0 1.0 150 610 80
a)Owners and operators of stationary non-certified SI engines may choose to comply with the emission standards in units of either glbp-hr or ppmvd at
15 percent O.
b)For purposes of this subpart, when calculating emissions of volatile organic compounds, emissions of formaldehyde should not be included.
[3/1/10]
Operating Requirements
47.NSPS 40 CFR 60, Subpart JJJJ - Maintenance plan
In accordance with 40 CFR 60.4243(b)(2)(ii), the perinittee shall keep a maintenance plan and must, to
the extent practicable, maintain and operate the engine in a manner consistent with good air pollution
control practice for minimizing emissions.
[3/1/10]
48.NSPS 40 CFR 60, Subpart JJJJ - Lifetime Operation and Maintenance
In accordance with 40 CFR 60.4234, the permittee shall operate and maintain stationary SI ICE that
achieve the emission standards as required in 40 CFR 60.4233(e) over the entire life of the engine.
[3/1/10]
P-2009.0098 PROJ 60803 Page 18
49. NSPS 40 CFR 60. Subpart JJJJ AFR Controller Maintenance and Operation
In accordance with 40 CFR 60.4243 (g), the permittee shall maintain and operate the AFR controller in
order to ensure proper operation of the engine and control device to minimize emissions at all times.
13/1110]
Monitoring and Recordkeeping Requirements
50.NSPS 40 CFR 60, Subpart JJJJ - Records
In accordance with 40 CFR 60.4245 (a)(1) and (2), the permittee shall keep records of the following
information:
a For each engine notifications submitted and all documentation supporting any notification.
• Maintenance conducted on each SI engine
The permittee shall maintain these records on-site and be made available to DEQ representatives upon
request for a period of at least five years.
[6/19/123
Performance Testing Requirements
51.NSPS 40 CFR 60, Sub uart JJJJ - Performance Test Schedule
In accordance with 40 CFR 60.4243 (b)(2)(ii), the owner or operator shall conduct an initial performance
test and conduct subsequent performance testing every 8,760 hours or 3 years, whichever comes first,
thereafter to demonstrate compliance on each engine.
a The permittee shall conduct the initial performance test within 60 days after achieving the maximum
production rate, but not later than 180 days after initial startup.
13/1/101
52 NSPS 40 CFR 60, Subpart JJJJ - Performance Test Procedures
In accordance with 40 CFR 60.4244, the permittee shall follow the procedures:
• Each performance test must be conducted within 10 percent of 100 percent peak (or the highest
achievable) load and according to the requirements in §60.8 and under the specific conditions that are
specified by Table 2 to Subpart JJJJ,
• The permittee may not conduct performance tests during periods of startup, shutdown, or
malfunction, as specified in §60.8(c). If your stationary SI internal combustion engine is
non-operational, you do not need to startup the engine solely to conduct a performance test.
• The permittee must conduct three separate test runs for each performance test required in this section,
as specified in §60.8(f). Each test run must be conducted within 10 percent of 100 percent peak (or
the highest achievable) load and last at least 1 hour.
a To determine compliance with the NO mass per unit output emission limitation for each engine, the
permittee shall convert the concentration of NO in the engine exhaust using the following equation:
ER= Cd *1912*10 3 *Q*T
HP—hr
Where:
ER = Emission rate of NO in g/hp-hr.
Cd = Measured NO concentration in parts per million by volume (ppmv).
P-2009.0098 PROJ 60803 Page 19
1.912 x 10-3 = Conversion for ppm NO to grams per standard cubic meter @ 20 degrees Celsius.
Q = Stack gas volumetric flow rate, in standard cubic meter per hour, dry basis.
I = Time of test run, in hours.
HP-hr = Brake work of the engine, horsepower-hour.
• To determine compliance with the CO mass per unit output emission limitation, the permittee shall
convert the concentration of CO in the engine exhaust using the following equation:
ER= Cd *4 *0 *Q*T
HP—hr
Where:
ER = Emission rate of CO in g/hp-hr.
Cd = Measured CO concentration in parts per million by volume (ppmv),
1.164 x 10 = Conversion for ppm CO to grams per standard cubic meter @ 20 degrees Celsius.
Q = Stack gas volumetric flow rate, in standard cubic meter per hour, dry basis.
T = Time of test run, in hours.
HP-hr = Brake work of the engine, horsepower-hour.
• When calculating emissions of VOC, emissions of formaldehyde should not be included. To
determine compliance with the VOC mass per unit output emission limitation, the permittee shall
convert the concentration of VOC in the engine exhaust using the following equation:
ER= Cdl.83310QT
HP—hr
Whore:
ER = Emission rate of VOC in g/hp-hr.
Cd = Measured VOC concentration as propane in parts per million by volume (ppmv).
1.833 x 10 Conversion for ppm VOC measured as propane to grams per standard cubic meter
20 degrees Celsius.
= Stack gas volumetric flow rate, in standard cubic meter per hour, dry basis.
= Time of test run, in hours.
HP-hr = Brake work of the engine, horsepower-hour.
13/1/10]
P-2009.0098 PROJ 60803 Page 20
53. As stated in 40 CFR 60.4244 (a), the permittee must comply with the following requirements for
performance tests within 10 percent of 100 percent peak (or the highest achievable) load:
Table 2 to Subpart JJJJ of Part 60—Requirements for Performance Tests
Complying with the According to the
For each requirement to You must Using following
requirements
1. Stationary SI a. limit the concentration i. Select the sampling port location and 1) Method I or IA of 40 (a) If using a control
internal combustion of NO in the stationary he number of traverse points; CFR part 60, appendix A device, the sampling
engine demonstrating SI internal combustion or ASTM Method site must be located at
compliance according engine exhaust. )6522_.00(2005)a . he outlet of the
to §60.4244. control device.
ii. Determine the 02 (2)Method 3, 3A, or 3Bb of 40 CFR part b) Measurements to
concentration of the 60, appendix A or ASTM Method determine 02
stationary internal D652200(2005)a. concentration must be
combustion engine made at the same time as
exhaust at the sampling the measurements for
port location; NO,, concentration.
ii. Determine the (3)Method 2 or 19 of 40 CFR part 60.
exhaust flow rate of the
stationary internal
combustion engine
exhaust;
iv, If necessary, measure (4)Method 4 of 40 CFR part 60, (c) Measurements to
noisture content of the appendix A, Method 320 of 40 CFR part determine moisture must
tationary internal 63, appendix A, or ASTM D6348-03 be made at the same time
combustion engine (incorporated by reference, see §60.17). as the measurement for
exhaust at the sampling NO,, concentration.
port location; and
v. Measure NO,, at the (5)Method 7E of 40 CFR part 60, d) Results of this test
exhaust of the stationary appendix A, Method D652200(2005), consist of the average of
internal combustion Method 320 of 40 CFR part 63, appendix the three 1-hour or longer
engine. k, or ASTM D6348-03 (incorporated by runs.
reference, see §60.17).
b. limit the concentration i. Select the sampling port location and (I) Method I or IA of 40 (a) If using a control
of CO in the stationary the number of traverse points; CFR part 60, appendix A. device, the sampling
SI internal combustion site must be located at
engine exhaust. the outlet of the
control device.
ii. Determine the 02 (2) Method 3, 3A, or 3131' of 40 CFR part (b)Measurements to
concentration of the 60, appendix A or ASTM Method determine 02
stationary internal )6522-00(2005). concentration must be
combustion engine made at the same time as
exhaust at the sampling the measurements for CO
port location; concentration.
iv. If necessary, measure (4) Method 4 of 40 CFR part 60, (c)Measurements to
moisture content of the appendix A, Method 320 of 40 CFR part determine moisture must
stationary internal 63, appendix A, or ASTM D6348-03 be made at the same time
combustion engine (incorporated by reference, see §60.17). as the measurement for
exhaust at the sampling CO concentration.
P-2009.0098 PROJ 60803 Page 21
Complying with the According to the For each requirement to You must Using following
requirements
port location; and
:. Measure CO at the (5) Method 10 of 40 CFR part 60, (d) Results of this test
exhaust of the stationary appendix A, ASTM Method D6522— consist of the average of
internal combustion 00(2005), Method 320 of 40 CFR part the three I-hour or longer
engine. 63, appendix A, or ASTM D 6348-03 runs.
'incorporated by reference, sec §60.17).
c. limit the concentration i. Select the sampling port location and 1) Method 1 or IA of 40 (a) If using a control
of VOC in the stationary the number of traverse points; CFR part 60, appendix A. device, the sampling
SI internal combustion site must be located at
engine exhaust, the outlet of the
control device.
ii. Determine the 02 (2) Method 3, 3A, or 3Bb of 40 CFR part b) Measurements to
concentration of the 60, appendix A or ASTM Method determine 02
stationary internal )6522-00(2005). concentration must be
combustion engine made at the same time as
exhaust at the sampling the measurements for
port location; VOC concentration.
'ii. Determine the 3) Method 2 or 19 of 40 CFR part 60.
exhaust flow rate of the
stationary internal
combustion engine
exhaust;
iv.If necessary, measure (4) Method 4 of 40 CFR part 60, (c) Measurements to
moisture content of the appendix A, Method 320 of 40 CFR part determine moisture must
stationary internal 63, appendix A, or ASTM D6348-03 be made at the same time
combustion engine (incorporated by reference, see §60.17). as the measurement for
exhaust at the sampling VOC concentration.
port location; and
v.Measure VOC at the 5) Methods 25A and 18 of 40 CFR part 'd) Results of this test
exhaust of the stationary 60, appendix A, Method 25A with the consist of the average of
internal combustion use of a methane cutter as described in the three 1-hour or longer
engine. 40 CFR 1065.265, Method 18 or 40 CFR runs.
part 60, appendix A, cd Method 320 of 40
CFR part 63, appendix A, or ASTM
)6348-03 (incorporated by reference,
see §60.17).
a ASFM IYISZZ—UI) is incorporated by reterence; Sec 40 CFK 60. 17. Also, you may petition the Administrator for approval to use alternative methods for portable analyzer.
b You may use ASME vrc 19.10-1981, Flue and Exhaust Gas Analyses, for measuring the % content of the exhaust gas as an alternative to EPA Method 313.
c You may use EPA Method 18 of 40 CFR part 60, appendix A, provided that you conduct an adequate presurvey test prior to the emissions test, such as the one described in OTM
11 on EPA's Web site (http//www.epa.gov/tin/eme/prelim/otml I .pdf).
d You may use ASTM D6420-99 (2004), Test Method for Determination of Gaseous Organic Compounds by Direct Interface Gas Chromatography/Mass Spectrometry as an
alternative to EPA Method 18 for measuring total nonroethano organic,
[3/1/101
P-2009.0098 PROJ 60803 Page 22
Reporting Requirements
54.NSPS 40 CFR 60, Subpart JJJJ - Initial Notification
In accordance with 40 CFR 60.4245, the permittee SI ICE must meet the following notification, reporting
and recordkeeping requirements:
If the SI engines have not been certified by an engine manufacturer to meet the emission standards of 40
CFR 60.423 1, the permittee must submit an initial notification as required in §60.7(a)( 1). The notification
must include the following information:
Name and address of the owner or operator;
• The address of the affected source;
• Engine information including make, model, engine family, serial number, model year, maximum
engine power, and engine displacement;
• Emission control equipment; and
• Fuel used.
[3/1/10]
55.NSPS 40 CFR 60, Subpart JJJJ - Performance Test Submittal
In accordance with 60.424 5 (d), the permittee must submit a copy of each performance test as conducted
in 40 CFR 60.4244 within 60 days after the test has been completed.
[3/1/101
56.NSPS 40 CFR 60, Subpart JJJJ - General Provisions of 40 CFR 60
In accordance with 40 CFR 60.4246, the pennittee shall comply with the following applicable General
Provisions of 40 CFR 60:
tn Si,hniwt .1113 nf Part 11L._A nnIihI1+v nf nrI Pm .inn M Snh,a,r* 1.11.1
General Provision
Citation Subject of citation Applies to
subpart Explanation
§60.1 General applicability of the General Provisions Yes
§60.2 Definitions Yes Additional terms defined in §60.4248.
§60.3 Units and abbreviations Yes
§60.4 Address Yes
§60.5 Determination of construction or modification Yes
§60.6 Review of plans Yes
§60.7 Notification and Recordkeeping Yes Except that §60.7 only applies as specified in §60.4245.
§60.8 Performance tests Yes Except that §60.8 only applies to owners and operators
who are subject to performance testing in subpart JJJJ.
§60.9 Availability of information Yes
§60.10 State Authority Yes
§60.11 Compliance with standards and maintenance
requirements
Yes Requirements are specified in subpart JJJJ.
§60.12 Circumvention Yes
§60.13 Monitoring requirements No
§60.14 Modification
§6015 Reconstruction Yes
§60.16 Priority list - Yes
§60.17 Incorporations byreference Yes
§60.18 Generalcontrol device requirements
§60.19 General notification and reporting requirements Yes
13/1/101
P.2009.0098 PROJ 60803 Page 23
PERMIT TO CONSTRUCT GENERAL PROVISIONS
General Compliance
57.The permittee has a continuing duty to comply with all terms and conditions of this permit. All emissions
authorized herein shall be consistent with the terms and conditions of this permit and the Rules for the
Control of Air Pollution in Idaho. The emissions of any pollutant in excess of the limitations specified
herein, or noncompliance with any other condition or limitation contained in this permit, shall constitute a
violation of this permit and the Rules for the Control of Air Pollution in Idaho, and the Environmental
Protection and Health Act, Idaho Code §39-101, et seq.
[Idaho Code §39-101, et seq.]
58.The permittee shall at all times (except as provided in the Rules for the Control of Air Pollution in Idaho)
maintain in good working order and operate as efficiently as practicable, all treatment or control facilities
or systems installed or used to achieve compliance with the terms and conditions of this permit and other
applicable Idaho laws for the control of air pollution.
IIDAPA 58.01.01.211, 5/1/941
59.Nothing in this permit is intended to relieve or exempt the pe.rmittee from the responsibility to comply
with all applicable local, state, or federal statutes, rules and regulations.
[IDAPA 58.01.01.212.01, 5/1/941
Inspection and Entry
60.Upon presentation of credentials, the permittee shall allow DEQ or an authorized representative of DEQ
to do the following:
• Enter upon the permittee's premises where an emissions source is located or emissions related
activity is conducted, or where records are kept under conditions of this permit;
• Have access to and copy, at reasonable times, any records that are kept under the conditions of this
permit;
• Inspect at reasonable times any facilities, equipment (including monitoring and air pollution control
equipment), practices, or operations regulated or required under this permit; and
• As authorized by the Idaho Environmental Protection and Health Act, sample or monitor, at
reasonable times, substances or parameters for the purpose of determining or ensuring compliance
with this permit or applicable requirements.
[Idaho Code §39-1081
Construction and Operation
61.This permit shall expire if construction has not begun within two years of its issue date, or if construction
is suspended for one year.
[IDAPA 58.01.01.211.02, 5/1/941
62.The permittee shall furnish DEQ written notifications as follows in accordance with IDAPA
58.01.01.211:
• A notification of the date of initiation of construction, within five working days after occurrence;
except in the case where pre-permit construction approval has been granted then notification shall be
made within five working days after occurrence or within five working days after permit issuance
whichever is later;
A notification of the date of any suspension of construction, if such suspension lasts for one year or
more;
P.2009.0098 PROJ 60803 Page 24
• A notification of the anticipated date of initial start-up of the stationary source or facility not more
than sixty days or less than thirty days prior to such date; and
• A notification of the actual date of initial start-up of the stationary source or facility within fifteen
days after such date.
IJDAPA 58.01.01.211.03, 5/1/941
Performance Testing
63.If performance testing (air emissions source test) is required by this permit, the permittee shall provide
notice of intent to test to DEQ at least 15 days prior to the scheduled test date or shorter time period as
approved by DEQ. DEQ, at its option, may have an observer present at any emissions tests conducted on
a source. DEQ requests that such testing not be performed on weekends or state holidays.
64.All performance testing shall be conducted in accordance with the procedures in IDAPA 58.01.01.157.
Without prior DEQ approval, any alternative testing is conducted solely at the permittee's risk. If the
permittee fails to obtain prior written approval by DEQ for any testing deviations, DEQ may determine
that the testing does not satisfy the testing requirements. Therefore, at least 30 days prior to conducting
any performance test, the permittee is encouraged to submit a performance test protocol to DEQ for
approval. The written protocol shall include a description of the test method(s) to be used, an explanation
of any or unusual circumstances regarding the proposed test, and the proposed test schedule for
conducting and reporting the test.
65.Within 30 days following the date in which a performance test required by this permit is concluded, the
permittee shall submit to DEQ a performance test report. The written report shall include a description of
the process, identification of the test method(s) used, equipment used, all process operating data collected
during the test period, and test results, as well as raw test data and associated documentation, including
any approved test protocol.
ILDAPA 58.01.01.157, 4/51001
Monitoring and Recordkeeping
66.The permittee shall maintain sufficient records to ensure compliance with all of the terms and conditions
of this permit. Records of monitoring information shall include, but not be limited to the following: (a)
the date, place, and times of sampling or measurements; (b) the date 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; and (f) the operating conditions existing at the time of sampling or measurement.
All monitoring records and support information shall be retained for a period of at least five years from
the date of the monitoring sample, measurement, report, or application. Supporting information includes,
but is not limited to, all calibration and maintenance records and all original strip-chart recordings for
continuous monitoring instrumentation and copies of all reports required by this permit. All records
required to be maintained by this permit shall be made available in either hard copy or electronic format
to DEQ representatives upon request.
[IDAPA 58.01.01.211, 511/941
Excess Emissions
67.The permittee shall comply with the procedures and requirements of IDAPA 58.01.01.130-136 for excess
emissions due to startup, shutdown, scheduled maintenance, safety measures, upsets and breakdowns.
[IDAPA 58.01.01.130-136,4/5/001
P-2009.0098 PROJ 60803 Page 25
Certification
68.All documents submitted to DEQ, including, but not limited to, records, monitoring data, supporting
information, requests for confidential treatment, testing reports, or compliance certification shall contain a
certification by a responsible official. The certification shall state that, based on information and belief
formed after reasonable inquiry, the statements and information in the document(s) are true, accurate, and
complete.
[IDAPA 58.01.01.123, 5111941
False Statements
69.No person shall knowingly make any false statement, representation, or certification in any form, notice,
or report required under this permit, or any applicable rule or order in force pursuant thereto.
[IDAPA 58.01.01.125,3/23/981
Tampering
70.No person shall knowingly render inaccurate any monitoring device or method required under this permit
or any applicable rule or order in force pursuant thereto.
IIDAPA 58.01.01.126,3/23/981
Transferability
71.This permit is transferable in accordance with procedures listed in IDAPA 58.01.01.209.06.
[IDAPA 58.01.01.209.06,4/11/061
Severability
72.The provisions of this permit are severable, and if any provision of this permit to any circumstance is held
invalid, the application of such provision to other circumstances, and the remainder of this permit, shall
not be affected thereby.
[IDAIPA 58.01.01.211, 5/11941
P.2009,0098 PROJ 60803 Page 26