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EPA air permit for Morro Bay power plant reduces emissions, protects air quality Modernization project will also increase power generation

Release Date: 09/25/2008
Contact Information: Dean Higuchi, 808-541-2711, higuchi.dean@epa.gov

(09/25/08) SAN FRANCISCO - The U.S. Environmental Protection Agency has approved an air permit for Dynegy Morro Bay, LLC for the Morro Bay Power Plant modernization project.

The Prevention of Significant Deterioration or PSD permit will allow Dynegy to modernize the existing power plant in Morro Bay, California, that has been in operation since 1955. The EPA is the PSD permitting authority for San Luis Obispo County.

“The modernization of the Morro Bay Power Plant is key to generating needed power for the area and reducing air pollution,” said Deborah Jordan, air division director for the EPA’s Pacific Southwest region. “The improvements to the plant will ensure the air emissions meet all air standards and requirements, protecting the air quality for the area.”

The company will be replacing four existing fossil fuel fired electric utility steam generators with two combined cycle natural gas fired turbine generators. The three existing 450 foot exhaust stacks will be replaced with two 145 foot stacks. The existing fossil fuel oil tanks will also be removed.

Power generation will increase from 1002 megawatts to 1200 megawatts. The modernization project will result in reduced emissions of oxides of nitrogen, carbon monoxide and volatile organic compounds. The emissions increase of sulfur dioxide will be below permitting levels, while the emissions increase of particulate matter or PM/PM10 is subject to PSD review and permitting.

PM/PM10 emissions from the new facility will not cause ambient PM10 concentrations to exceed the National Ambient Air Quality Standards. Emissions will not significantly impact visibility, soils, or vegetation.

In April 2006, the EPA published notice and a request for comments on the proposed PSD permit. A public hearing was held in October 2006, and twenty-six oral comments and seven written comments were received at the hearing. The EPA carefully reviewed, considered, and responded to all substantive comments received.

The PSD permitting program is a Clean Air Act permitting program for new and modified major sources of air pollution such as power plants, manufacturing facilities, and other facilities that emit air pollution.

The EPA response to comments, final permit, public hearing transcript, and administrative record index are available on www.regulations.gov (Docket ID: EPA-R09-OAR-2007-0964), or at the EPA Region 9 Air Permits Website: https://www.epa.gov/region09/air/permit/r9-permits-issued.html#morro

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