# Appendix — Harrison v. PPG Industries, Inc.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1980
- **Citation:** 446 U.S. 578

## Text

APPENDIX

Iu the Supreme Court of the United States

OCTOBER TERM, 1979

No. 78-1918

ADLENE HARRISON, REGIONAL ADMINISTRATOR,
AND DOUGLAS COSTLE, ADMINISTRATOR OF
ENVIRONMENTAL PROTECTION AGENCY,
PETITIONERS
—U

PPG INDUSTRIES, INC.

ON WRIT OF CERTIORARI TO THE UNITED STATES
COURT OF APPEALS FOR THE FIFTH CIRCUIT

PETITION FILED: JUNE 25, 1979
PETITION GRANTED: OCTOBER 1, 1979

In the Supreme Court of the United Stairs

OCTOBER TERM, 1979

No. 78-1918

ADLENE HARRISON, REGIONAL ADMINISTRATOR,
AND DOUGLAS COSTLE, ADMINISTRATOR OF

ENVIRONMENTAL PROTECTION AGENCY,
PETITIONERS

—v.—

PPG INDUSTRIES, INC.

ON WRIT OF CERTIORARI TO THE UNITED STATES
COURT OF APPEALS FOR THE FIFTH CIRCUIT

TABLE OF CONTENTS OF APPENDIX

Page

Relevant Docket Exntries ..............-------s-s-essssssssnsssssnenenenensnenenenens 1
Petition for Review Filed by PPG Industries, Inc., in the

Court of Appeals ............---:-s-sscssssssesseeseseseensesesnenensasnenensnatansss 2

EPA letter, Milan C. Miskovsky (Attorney ) (Determination
of Applicability of New Source Performance Standards)
from William H. Megonnell, April 17, Seen te. 83° u..... 4

EPA memo to Kevin Healy (Determination of Applicability
of New Source Performance Standards) from Jean E.

Vernet, March 2, 1976 [p. 2-3] .....---------s-:sessssesestseesserestees 6
Letter to T. O. Taylor, PPG Industries, Inc., from Thomas

P. Harrison, EPA, and enclosure, May 3, 1976 [p. 4-7].... 8
Letter to Thomas P. Harrison, II, EPA, from T .G. Taylor,

PPG Industries, Inc., and enclosures, May 14, 1976 [p.

RO) ces ccennccsccnssscnscastoniesensesennsnncenesnnnettinnnnacsnsaniouneemnscmnsonanseanenees 12
EPA memo to Paul Farenthold from Jim Veach, May 25,

1976 [p. 20) .......--csscscecesesseeesesnsnesneneesesssenensessntssasensaenenensens ie 23

—_——_

* The entire administrative record was included as a single ex-
i hibit in the record on direct review, with the separately numbered
pages indicated here in brackets. The administrative record is

included in entirety, except as noted.

See - 2s

ii TABLE OF CONTENTS OF APPENDIX

Undated hand written notes [p. 21] ............---.-------:sessseeseeeeeeeeees

Letter to T. G. Taylor, PPG Industries, Inc., from Thomas
P. Harrison, II, and enclosure, June 2, 1976 [p. 22-23) ....

Letter to Thomas P. Harrison, II, EPA, from T. G. Taylor,
PPG Industries, Inc., and enclosures, June 28, 1976 [p.
| a necéeithusisssuliaaniedeabaliteesieudttuinaadpuntiocaaiabtceiaariaiat

Letter to T. G. Taylor, PPG Industries, Inc., from oO. W.
Lively, EPA, October 5, 1976 (2 —

Letter to O. W. Lively, EPA, from T. G. Taylor, PPG In-
dustries, Inc., and enclosure, November 12, 1976 [p. 45-
BO) nn .nn.nw--nnncoeensenenaesnennnenceessncsensenssnensvennsnnsenseussanssnssasansenaeewanseneene

Letter to T. G. Taylor, PPG Industries, Inc., from oO. W.
Lively, December 22, 1976 [p. 51-52) ........-------------------e-e0+

EPA memo, to O. W. Lively (Determination of Applicability
of New Source Performance Standards) from Edward E.
Reich, December 29, 1976 [p. 53-54) -.........-----.------1----e--000->

List of attendees at meeting with sketch attached, March 10,
1977 [p. 56-66) -......n.-.n.n-n--.c.ccenceseceseceenenenensnsnessneasnensensnensasenees

Letter to Howard G. Bergman, EPA, from George P. Cheney,
Jr., PPG Industries, Inc., with enclosures, April 18, 1977
[p. 57-73] ...n.n.n.n.neceeneecccnscseseeseseseenencnensncnsnsonsssnensnsatnenensnsnsnsssesenes

EPA memo, to Ed Reich from Howard Bergman, April 14, .

1977 [p. TA] -..-----c-----2o-e-c-ea-nnssncsnseennenceeaseencsnssncsssnssnscenensenenaces

Letter to Howard Bergman, EPA, from Charles F. Lettow
(Counsel for PPG Industries, Inc.) with enclosure, April
29, 1977 [p. 75-86) ......-....-.----..s-c-ceneeccnnsncsncncecessecsscsnneneanenssnees

EPA memo to Howard G. Bergman from Director, Division
of Stationary Source Enforcement, May 5, 1977 [p. 87-
| ema

Letter to George P. Cheney, Jr., PPG Industries, Inc., from
John C. White, EPA, June 8, 1977 [p. 89-90] .................-.-

Letter to Edward E. Reich, EPA, from Charles F. Lettow
(Counsel for PPG Industries, Inc.), July 18, 1977 [p. 91-
Onn nennnnnncnenccncecsnecenenesessesesaiessnsennn nnn

Letter to Charles F. Lettow (Counsel for PPG Industries,
Inc.) from Edward E. Reich, EPA, August 3, 1977 [p. 93]..

EPA memo by Doug Farnsworth, August 17, 1977 [p. 94]...

Letter to Charles F. Lettow (Counsel for PPG Industries,
Inc.) from Edward E. Reich, EPA, August 18, 1977 [p. 95-
| ana UU UTNE ann ee

Letter to Adlene Harrison, EPA from James E. Wyche, PPG
Industries, Inc., September 6, 1977 [p. 97] ..........-----------+--

Order allowing certiorari ...............-.........ccccssscssssscsnsesssssenscess

bate staat 2

1
RELEVANT DOCKET ENTRIES
[Title of Court Omitted in Printing]
PPG INDUSTRIES, INC.
Vv.
ADLENE HARRISON, REGIONAL ADMINISTRATOR,

AND DOUGLAS COSTLE, ADMINISTRATOR OF
ENVIRONMENTAL PROTECTION AGENCY

DATE PROCEEDINGS

October 4, 1977 Petition for Review

November 10, 1977 Order granting motion of Continental
Oil Company to Intervene

December 7, 1977 Certified list of administrative record filed
May 10, 1978 Case Argued
January 8, 1979 Opinion and judgment entered

January 22, 1979 Respondents’ motion for extension of time
to file petition for rehearing granted to February 5, 1979

February 5, 1979 Respondents’ petition for rehearing and
rehearing en banc

February 26, 1979 Order denying petition for rehearing and
rehearing en banc

March 6, 1979 Judgment as mandate issued

2

IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT

No.

PPG INDUSTRIES, INC.
Box 1000
Lake Charles, Louisiana 70601, PETITIONER

Vv.

ADLENE HARRISON, as Regional Administrator,
Environmental Protection Agency
Region VI
1201 Elm Street
First International Building, Suite 2800
Dallas, Texas 75270

and

Douc.Las M. CosTLE, as Administrator,
ENVIRONMENTAL PROTECTION AGENCY
401 M Street, S.W.
Washington, D.C. 20460, RESPONDENTS

PETITION FOR REVIEW

PPG Industries, Inc., hereby petitions the court for re-
view of the orders and determinations of the Environ-
mental Protection Agency (a) that two “waste heat”
boilers, which are component parts of “Power Plant C”
in the chemical manufacturing plant of PPG Industries,
Inc. at Lake Charles, Louisiana, are subject to pro-
visions of Standards of Performance for Fossil Fuel
Fired Steam Generators, 40 C.F.R. § 60.40, et seq.; (b)
that, pursuant to the Standards of Performance for Fossil
Fuel Fired Steam Generators, PPG Industries, Inc. may
fire in its waste heat boilers only a fuel which contains
a sulfur content equal to or less than a sulfur level to
be specified as a result of performance tests conducted in
compliance with the Standards; and (c) that, pursuant
to the Standards, PPG Industries, Inc. must install and

3

operate continuous opacity monitors in the stacks of the
boilers in Power Plant C and also may be required to
monitor and report on the sulfur content of the fossil
fuel burned in the boilers. These orders and determina-
tions were issued and entered on June 8, 1977, August
8, 1977, and August 18, 1977. They have not been pub-
lished in the Federal Register.

Respectfully submitted,

/s/ Oliver P. Stockwell
OLIVER P. STOCKWELL
Attorney for Petitioner
Stockwell, Sievert, Viccellio,

Clements & Shaddock

One Lakeside Plaza
P.O. Box 2900
Lake Charles, Louisiana 70601
(318) 436-9491

/s/ George P. Cheney, Jr.
GEORGE P. CHENEY, JR.
Attorney for Petitioner
PPG Industries, Inc.
One Gateway Center
Pittsburgh, Pennsylvania 15222
(412) 484-2145

/s/ Charles F. Lettow
CHARLES F. LETTOW
Attorney for Petitioner
Cleary, Gottlieb, Steen & Hamilton
1250 Connecticut Avenue, N.W.
Washington, D.C. 20036
(202) 223-2151

Dated: October 4, 1977

[Certificate of Service Omitted in Printing]

4

April 17, 1972
Key Letter

Mr. Milan C. Miskovsky
Debevoise & Liberman
Shoreham Building
Washington, D.C. 20005

Dear Mr. Miskovsky:

Your March 24 letter requested our advice regarding
applicability of the Standards of Performance for New
Stationary Sources (40 C.F.R. Part (8), particularly the
nitrogen oxide standards, to a General Electric combined
combustion turbine and steam generating plant purchased
by a member of General Public Utilities Corporation for
addition to the existing Gilbert electric generating sta-
tion in New Jersey.

The combustion turbine facility clearly is not subject
to the present Federal regulations, and both the combus-
tion effluent and thermal energy from the turbine may
be discharged to the atmosphere without being limited
by the standards. There would be no logic, then, in per-
mitting an owner or operator who chooses to use the
exhaust heat, which otherwise would be wasted, in a
waste heat recovery steam generator unit, with or with-
out supplemental fuel.

Accordingly, we agree that both the heat input and the
emission contribution of the combustion turbine will be
excluded in determining whether the steam generating
plant complies with the standards. Compliance will be
judged only on the amount of heat and combustion ef-
fluents added by supplemental fuel used in the waste heat
recovery steam generator, which is the affected facility.

We appreciate the concise explanation and clarity of
your letter. Please communicate with us whenever we
may be of assistance.

WILLIAM H. MEGONNELL
Director, Division of Stationary
Source Enforcement

Sealed ae

ec: Region II—w/cy incg
Don Goodwin ” ”
Bob Baum ee oor
Bob Walsh (ils

[Illegible material notations omitted in printing; italicized
material is handwritten marginal notation]

6

UNITED STATES ENVIRONMENTAL
PROTECTION AGENCY

DATE: 2 Mar. 1976

SUBJECT: Determination of Applicability—
Chevron Oil Co., Perth Amboy, New Jersey

FROM: Attorney-Advisor, Enforcement Proceedings
Branch
Division of Stationary Source Enforcement

TO: Kevin Healy, Attorney
General Enforcement Branch _
Enforcement Division, Region .I

As per our telephone conversation of February 29,
1976, the following confirms our discussion of the appli-
cability of New Source Performance Standards to new
petroleum refining and storage facilities of Chevron Oil
Co., to be located in Perth Amboy, New Jersey.

BACKGROUND

Chevron plans to construct new petroleum refining and
storage facilities in Perth Amboy, New Jersey. A con-
tract for construction of the off-plot facilities (storage
tanks and vessels) was entered into in February of 1973.
A construction contract for the on-plot (refining facilities,
e.g. catalytic cracking units) was entered into on June
15, 1973. The source did an environmental impact study
of the proposed facilities sometime prior to February
1973.

It must be noted that the applicability date for NSPS
for petroleum refineries and storage vessels for petroleum
liquids is June 11, 1973 (date of FR proposal for these
standards). Where construction of facilities was com-
menced after that date, the facilities are subject to the
applicable standard.

DISCUSSION

Clearly, the planned storage vessels at the Chevron
facility are not subject to NSP since their construction

da Citas ce Cada AREA LG tM at >

7

was contracted for prior to June 11, 1973 (i.e., in Feb-
ruary 1973). The refining facilities, considered sepa-
rately, would be subject to NSPS since the construction
contract was entered into on June 15, 1973, four days
after the proposal date of the standard. The company
has claimed an exemption for the refining facilities based
on the contract date for the storage vessels, arguing that
the entire new construction is so integrated as to make
the contract date for the off-plot facilities the “com-
merce construction” date for the on-plot facilities.

Storage vessels and refining facilities (e.g. catalytic
cracking units, catalyst regenerators) are separate “af-
fected facilities” within the definitions of 40 CFR Part
60. As such, they must be considered separate from each
other for the purpose of NSPS applicability. Note that
the definition of “construction” in 40 CFR § 60.2(g)
means “fabrication, erection, or installation of an ch
fected facility.” Thus, the date for commencement of
construction, where the contract for construction rather
than actual physical changes to the site is used, applies
separately to each of Chevron’s contracts. The earlier
contract date for the storage vessels cannot be used to
“orandfather” the refining facilities as exempt from
NSPS compliance. The date of the environmental impact
study is irrelevant.

Because other information was unavailable to us, this
affirmative applicability determination applies only to the
“commencement of construction” issue, and does not

speak to the process or design capacity requirements of
40 CFR Part 60.

/s/ Jean E. Vernet
JEAN E. VERNET

8
MAY 3 1976

CERTIFIED MAIL—
RETURN RECEIPT REQUESTED #789717

Mr. T. O. Taylor

Technical Manager

Industrial Chemical Division

PPG Industries, Inc.

P.O. Box 1000

Lake Charles, Louisiana [Tllegible]

Dear Mr. Taylor:

On February 26, 1975 Conoco Oil Company notified
this office that, as fuel supplier to PPG Industries, Conoco
would have to switch from supplying natural gas to
fuel oil for PPG’s fossil fuel fired steam generators at
the Lake Charles, Louisiana plant. On March 21, 1975 a
meeting was held in Dallas that was attended by rep-
resentatives of PPG, Conoco, the Environmental Protec-
tion Agency, and a representative of the Louisiana Air
Control Commission. At this meeting the effects of the
fuel switch in regard to the applicability of the New
Source Performance Standards were discussed. On Jan-
uary 19, 1976 we wrote you requesting information on
the status of the fuel switch. In a letter dated February
2, 1976 you informed us that the Louisiana Air Control
Commission approved PPG’s fuel oil permit application
on July 9, 1975.

Under the provisions of the Clean Air Act, as amended,
42 U.S.C. 1857 et seq., the Administrator of the En-
vironmental Protection Agency has promulgated Stand-
ards of Performance for New Stationary Sources [40
CFR Part 60]. Among the new and modified stationary
sources to which Standards of Performance apply are
fossil fuel-fired steam generating units [40 CFR Part
60, Subpart D, a copy of which is enclosed].

Facilities covered by Standards of Performance are
subject to notification and recordkeeping requirements
[40 CFR 60.7, a copy of which is enclosed].

9

A fuel switch from natural gas to fuel oil is probably
a modification within the meaning of 40 CFR 60.14 (a
copy of which is enclosed) unless the exception of 40
CFR 60.14(e) (4) applies. It is necessary for you to
provide us information that will demonstrate whether or
not the fuel switch is a modification and whether or not
you come within the scope of 40 CFR 60.14(e) (4). Ac-
cordingly, pursuant to the authority granted in Section
114 and subject to the sanctions of Section 113 of the
Clean Air Act (copies of which are enclosed) you are
hereby required to complete Enclosure 1 to this letter.
The completed Enclosure 1 is required to be submitted
within twenty (20) days from the receipt of this letter
to the Environmental Protection Agency at the follow-
ing address:

U.S. Environmental Protection Agency
Region VI

1600 Patterson Street

Dallas, Texas 75201

Attn: Enforcement Division

Any change in the information so reported must be
reported to the same office within five days after such
change occurs. This continuing requirement to provide
notification of change in the information covered by this
letter remains in effect until expressly terminated in
writing by this office.

In accordance with Section 114(c) of the Clean Air
Act and the Freedom of Information Act, 5 U.S.C. Sec-
tion 552, information provided to the Environmental
Protection Agency in this report will be available to the
public, except that upon a showing satisfactory to the
Agency by any person that a specified portion (other
than emission data), if made public, would divulge
methods or processes entitled to protection as trade secrets
of such person, the Agency will consider such informa-
tion confidential in accordance with the purposes of 18
U.S.C. Section 1905. However, any such confidential in-
formation may be disclosed to other officers, employees,
or authorized representative of the United States con-
cerned with carrying out the Clean Air Act or when

10

relevant in any proceeding under the Clean Air Act. If
you feel that you can justify confidential treatment for
any of the information supplied, you should provide a
fully detailed explanation for each specific item of in-
formation at the time that you respond to this letter.
Whether or not you regard part of the information re-
quested as confidential, you are required to furnish it
in response to this letter.

Questions regarding your compliance with the New
Source Performance Standards should be addressed to
Mr. James Veach, Attorney, Enforcement Division, at
(214) 749-2142.

Sincerely yours,

Original Signed By
THOMAS P. HARRISON, II
Director
Enforcement Division (6AE)
Enclosures
1. Enclosure 1
2. 40 CFR 60.7
3. 40 CFR Part 60, Subpart D
4. 40 CFR 60.14
5. Sections 113 and 114 of the Clean Air Act

ec: Mr. James F. Coerver
Technical Secretary
Louisiana Air Control Commission
P.O. Box 60630
New Orleans, Louisiana 70160

bee: Bill McNally, (6AEA)

6AEL: JVeach:ma:X2142:R1135 :4/29-76

JV 4/29

6AEL JC 6AEA [Illegible]

Collings Doyle

When info on increase in pollutants comes back we may

still have to call/write whether company caiculations/
projects whether an increase will occur.

bec: George Stevens, DSSE

[italicized portions appears as handwritten
notations in record]

ee ee P

Bi Miaciridicirmernirs 2

11

Enclosure 1
Required Information to be Submitted

Provide the following information for each fossil fuel-
fired steam generating unit of more than 250 million
British thermal units per hour heat input, the construc-
tion or modification of which was commenced after Au-
gust 17, 1971.

1. List each steam generating unit that has changed
or will change from burning natural gas to burning fuel
oil and the date of each change.

2. If any of the steam generating units listed in
number 1, above, were designed prior to August 17,
1971, to accommodate the use of fuel oil, provide docu-
mentation of such designed use for each such unit.

3. List the changes that were or will be made to each
steam generating unit that allows it to burn fuel oil,
and the date such changes were or will be begun on each
such unit.

4. Provide all available information and documentation
on the change in emission of any pollutant from each
unit as a result of the fuel switch from natural gas to
fuel oil.

12
[PPG Emblem]

PPG INDUSTRIES, INC.
Industrial Chemical Division
P.O. Box 1000
Lake Charles, La. 70601

T. G. TAYLOR
Technical Manager

May 14, 1976
Certified Mail—Return Receipt Requested

Mr. Thomas P. Harrison, II
Director—Enforcement Division (6AE)
U.S. Environmental Protection Agency
Region VI

1600 Patterson Street

Dallas, TX 75201

Re: Enclosure I, Thomas P. Harrison to T. G. Taylor,
May 3, 1976

Dear Mr. Harrison:

We believe that all answers and documentation to the
four questions raised in your Enclosure I are found in
PPG’s application to the Louisiana Air Control Com-
mission dated May 26, 1975, for fuel oil burning in our
complex. A copy of this document was forwarded to you
last year by the LACC. For your convenience, however,
those sections containing answers to your Enclosure I
questions are reproduced and included herein.

The fuel oil permit application covers two situations. The
first situation is that we must convert some of our exist-
ing combustion equipment from gas to oil feed due to
supply problems. Since all of the equipment to be con-
verted was originally designed for fuel oil feed and in
operation prior to 1971, the fuel switch is a modification
within the meaning of 40 CFR 60.14. This conversion
is now partially completed.

The second situation covered by our permit is the con-
struction of a new power facility to combust either gas

13

or oil. This new facility was designed and equipment
was ordered in 1970. Numerous problems delayed the
start of construction until late last year.

[handwritten and illegible marginal notes omitted]

The monitoring devices required of a new emission source
are being incorporated into the design of this facility.
Startup of this unit is still a year in the future; conse-
quently, you have not directly received information on
the unit.

Sincerely yours,

/s/ T. G. Taylor
Technical Manager

edh

Enclosure 1
Required Information to be Submitted

Provide the following information for each fossil fuel-
fired steam generating unit of more than 250 million
British thermal units per hour heat input, the construc-
tion or modification of which was commenced after Au-
gust 17, 1971.

1. List each steam generating unit that has changed
or will change from burning natural gas to burning fuel
oil and the date of each change.

2. If any of tlie steam generating units listed in
number 1, above, were designed prior to August 17, 1971,
to accommodate the use of fuel oil, provide documentation
of such designed use for each such unit.

3. List the changes that were or will be made to each
steam generating unit that allows it to burn fuel oil, and
the date such changes were or will be begun on each such
unit.

14

4. Provide all available information and documenta-
tion on the change in emission of any pollutant from
each unit as a result of the fuel switch from natural
gas to fuel oil.

Reply to Enclosure 1

(1) Units 5, 6, 7, 8 and 9 at Powerhouse A, and Units
2 and 3 at Riverside Powerhouse will be modified to
accept fuel oil as well as natural gas. Units 1 and 2
at Powerhouse C will be constructed to combust nat-
ural gas and/or fuel oil. This information is con-
tained on pages 2 and 2A.

(2) All Powerhouse A and Riverside boilers were origi-
nally designed for either gas or fuel oil operation.
Predicted performance data and certified construc-
tion drawings are presented in Appendix IV with
Exhibits A-F.

Note: Powerhouse A boiler heat releases are less
than 250 MM Btu/hr. each.

(3) The fuel oil system for all boilers is still under con-
struction. Page 5 contains a brief description of the
oil system; page 2A shows the chronology. Exhibit
V explains the mode of operation of the new units.
SK-7333 is a schematic of the oil system.

(4) The EIQ submitted in association with the permit
application and dated 3/17/75 presents the new
emission data predicted from each boiler as a result
of fuel oil combustion. A page 6 from the EIQ is
presented for each unit.

Show ownership and use of adjoining property on map
section or list below.

List any residential areas near the plant or establishment
and give distance from the plant or establishment:

See Exhibit I Plant Layout/Land Allotment
Location of Power Plant Stacks
Fuel Oil Permit
PPG Drawing 32A-6022-F.0.

» el

15

3. LOUISIANA AIR CONTROL COMMISSION EMIS-
SION INVENTORY QUESTIONNAIRE.

A completed Emission Inventory Questionnaire (copy
attached) is required. If a new 6 page questionnaire for
this location has been previously submitted, give date of
submission February 1975. A completed “revised” Emis-
sion Inventory Questionnaire must also be submitted with
this application. The Emission Inventory Questionnaire
must be completed showing the entire emissions of the
facility after modifications and/or additions, with max.
concentration calculations under worst ambient air condi-
tions.

Estimated starting date of construction: Power Pits. A,

B, C (See Pg. 2A)
Estimated date operation will begin: See Page 2A.
Old Facility: Power Pits. A & B Operating
Addition: No
New Facility:
Addition: Yes

“Give a brief description of proposed action and attach
such information as flow diagrams, schematic diagrams,
drawings, ete. needed to convey an understanding of the
processes involved in the plant or establishment.”

Power Pit. C

Due to the notice of curtailment of our natural gas con-
tract by one of our suppliers, PPG is required to use
fuel oil for a major percentage of their fuel needs. Seven
boilers now in operation using natural gas will be con-
verted to burn fuel oil. The chlorine expansion, Permit
290, has two new boilers that will burn fuel oil and/or
natural gas. Therefore, nine boilers will be converted for
the burning of fuel oil. They are as follows: (1) Power
Pit. A—Nos. 9, 8, 7, 6, 5. No. 5 boiler will be a spare
for outages of boilers #9 through 6. Stack numbers are
the same as boiler numbers. (2) Power Plt. B (River-
side)—Nos. 8 and 2. The No. 8 boiler stack is being
raised to the same height as No. 2, 150 ft. Stack num-

SS PHD tn vee

16

bers are 12 and 11, respectively. (3) Power Plt. C—Nos.
1 and 2 with stack Nos. 6-73 and 5-73, respectively. The
schematic showing boiler arrangements is as follows:
Exh. II—Routing of fuel oil fed to boilers; Exh. IJJ—
Plan View of Boilers Plt. A; Exh. IIJ-A—Plt. B; Exh.
III-B—Plt. C; Exh. IV—Boiler elevation and _ stack
heights Plant A, Boilers 1 thru 9; Exh. IV-A and IV-B—
Boilers 2 and 3; Exh. 1V-C—Boilers 1 and 2.

Five on-the-line fuel oil tanks are being installed, four
for No. 6 and one for blending low sulphur fuel oil with
the No. 6 fuel oil to maintain ambient air at acceptable
SO, environmental levels. The fuel oil will be burned at
a nominal rate of 9,692 BPD.

Power Estimated Starting Estimated Date
Plants Date of Construction Operation Will Begin
Power Pit. A

Boiler +9 December 1, 1975 January 26, 1976
Boiler +8 January 26, 1976 March 15, 1976
Boiler +7 March 15, 1976 May 3, 1976
Boiler +6 May 8, 1976 June 21, 1976
Boiler #5 June 21, 1976 August 9, 1976

#5 Boiler will be a spare for outages of Boilers +9 through
+6.

Power Plt. B

(Riverside)
Boiler #8 September 29, 1975 December 1, 1975
Boiler +2 December 1, 1975 February 2, 1976

Power Plt. C

Boiler #1 January 1, 1976
Boiler #2 July 1, 1977

February 1, 1977
August 1, 1978

List the air pollution abatement measures that will be
utilized to control the emissions from the sources for the
plant or establishment. If no facilities are contemplated,
list the steps which will be taken to prevent the emission
of sufficient quantities of pollutants to result in undesir-
able levels. Give the source and then the abatement
method for each source. Please include information such

17

as drawings, manufacturer literature, specification, ca-
pacities ad efficiencies needed for evaluation of such con-
trol equipment and techniques used in controlling each
source. Please include date that each estimated date
operation will begin. Any information about the method
used for abateing the source will facilitate the evalua-
tion of the application.

The new burners and soot blowers to be installed in the
designated boilers will incorporate the latest technology
to consume the liquid fuels as cleanly and efficiently as
possible. The system is designed for 9,692 BPD of fuel
oil. The typical rate of burning will be lower, resulting
in lower SO, emissions than indicated in Appendix I—
Ambient Air—Max. Conen. of Pollutants with 1 Wt. %
S Fuel Oil. Expected plan of boiler operations is given
in Appendix II. Boiler sizes are shown as Appendix III
as MM BTU/Hr.

In order to continuously meet the primary standards for
SO., the following will be done:

1. Monitor ground level SO, concentration as required
by the LACC.

2. Extend the stack of our existing No. 3 boiler at River-
side from 100’ to 150’.

3. Install storage capacity and equipment so that fuel
oil blending can be accomplished to provide environ-
mental acceptance of fuel oil during adverse SO,
levels of 365 ug/m* in ambient air. Blending will be
accomplished using a low sulphur fuel oil with the
No. 6 oil.

4, Supplier’s letter of intent of February 5, 1975, to fur-
nish fuel oil that can be blended with 1 wt.% S fuel
oil whenever monitors detect that an emergency SO,
condition exists, is Exhibit V.

5. We plan to design foundations and structure of new
boiler stack at Power Plant C—#1 and #2 so that
they may be extended.

LACC-AFAOE-Rev. 1/20/73

18

APPENDIX V

POWER PLANT C
COMBINED FLUE GASES FROM GAS TURBINE
AND WASTE HEAT BOILER BURNING
GAS OR OIL

PPG Industries asks that the calculation of emissions
rate from its two boilers at Power Plant C, now under
construction, be done for normal operating conditions
when determining compliance with EPA regulations.
Following are the reasons for the request:

Abstract

PPG Industries is constructing a combined cycle power-
steam generating plant at its Lake Charles, Louisiana,
chemical complex. Under normal operation, the flue gas
from a gas turbine generator exhausts directly into a
waste heat boiler where additional fuel is fired. The flue
gases from both units are inseparably mixed and emitted
through a single stack to the atmosphere. Both units
have heat releases greater than 250 MM BTU/hour. PPG
is requesting that it be allowed to consider the total heat
release from both units when determining the emissions
rate from the stack to the atmosphere. PPG has acquired
a permit from the Louisiana Air Control Commission to
construct this plant; however, the permit is based on
total gas firing, a requirement that can apparently no
longer be met by our fuel suppliers.

Equipment Definition

PPG Industries is constructing a combined cycle power
plant to furnish its Lake Charles, Louisiana, chemical
complex with both electrical power and process steam.

Predicted maximum output after project completion in
1979 will be the following:

149 megawatts electrical power
466,000 pounds/hour 400 psig steam
730,000 pounds/hour 175 psig steam

Ramu AS Hess = ee ee

2 -
‘

Ay

oy

t

i

19

Equipment configuration will be two GE gas turbine gen-
erators in parallel, each discharging its hot turbine ex-
haust gases in its respective waste heat boiler. Additional
fuel is supplied to the waste heat boilers to provide suffi-
cient heat for steam generation to feed a backpressure
turbogenerator. It is from this steam turbine that 175
and 400 pound process steam is obtained. No steam is
condensed to produce electrical power. The gas turbines
are designed to burn natural gas; the waste heat boilers
can burn either gas or oil. The total heat input to one
gas turbine plus one waste heat boiler is 1312.7 MM
BTU/hour, of which 714.4 MM BTU/hour is supplied by
the gas turbine.

Operation

Normal operation is described under Equipment Defini-
tion; however, each unit may operate individually at a
sacrifice to overall economy. The on-stream factor of all
units operating continuously is 95%. Thus, any operat-
ing configuration other than with both gas turbines, both
waste heat boilers, and the waste heat generator on line
is defined as an upset condition.

Compliance with EPA Regulations

Paragraphs 60.42, 60.43, and 60.44 of the Federal Reg-
ister * (Vol. 39, No. 116—Friday, June 14, 1974) set
forth the current emission regulations (particulate, SO.,
and NO.) being applied to boilers with heat released
greater than 250 MM BTU/hour and burning fossil fuels.
As previously described, our proposed combined cycle
generating station fires natural gas in a gas turbine
generator which is not normally vented to the atmos-
phere. The hot flue gases are used to supply part of the
combustion air and heat input to the waste heat boiler.
These gases, then, combine with the flue gases from the
supplemental fuel fired in the waste heat boiler and are
vented together in a single stack. In view of this situa-
tion, we are asking that the emission regulations be ap-
plied to the total heat input to the system—not just the
supplemental fuel heat input at the wase heat boiler.

* Attached.

20

’ |
. § .
’

ITEM NO, $ EMISSION INVENTORY QUESTIONNAIRE (Revised 11/74) Face o of 9 (su...
ahis page Ls to he used to record the data from one stack (or cther emission poir: only, — The

as many times as there ave individual emission points, and use one page for each poirt. Noce that the

nurters indfeate explanatory notes on pages 4 and 5.,

Foint scurce I Deseriptive mane Of the equiprent served Heighe of stack] Steck dlazeter, Stack gss es
ID nurvery by this stack % above grades temperature
6-73 Peweornouse C No. 1 Boiler ORL. ft 15.75 ft
Stack pas Flew | Stack gas} If thls stack serves a "poiler",, give |% of annual chrbughpuc of
sate st oreecss | exit the type(s) of Fuel used and the hear | pollucants through this emic-
congitions, not’ lwelociey ingus (ieee, fuel rate x heating value)| ston cotac (rozels 10%.)
aL standasd #6 Fue el Oil etyse{s) of Fuel [Dee= | “ar- June | sepe-
y : eta ee oiU/ine Ase fuel Feb ay Aus Nov
393,17 £27 /nin 31 ft/sec b pru/hr 2nd fuel, if any (25%) 25 7 25% 25%
hone of Follucion!Conrrel Average. [Maximum | Annual Einnission Acc, chenge | Concenteacion in
pollecant conczrol [aquipcent | emisstonlemission| emission jescimatien! or delece §ases enitrag the
equiomeatiercicteacy race ° [rata rate n2tnod 7 cece 3 steck g
i oe ee ee Ts los/he tons/yyr
Brriteubutn matcer | COO $5.3 oes Pn 6. 5 Add ! AN2slsti f24
gulfer dlectite |. tev | 630.0; Tus. a “2347, Q 6 Change _! 158 poe (wey
aizzoren diextds | 000 | _ | 457.8] 647.8 2925. 0. 6 Chance _|
nvr acasoeas a SE ys | RS 5 _f Fitl in this
catben mancucida { _Cv0 PE Re _ 23.6 23.4 103.3 : 4 Chance _! column only as
+ . J PRS _ . as 1. Teguiced by |
‘ieee. J oe eee eR : Sis 8 mates 3 nese 9, ;
es J i Lae ot aR |
af See | . : ITS : ecg
» : t
Tl sats stack fs stem equiewent vntie’? burns gurl, Give “slew cne Fuel er crs2-35 sacericis enaczing sete to
iaeve the 4 of the socal fuel used by the Cqulpsentd; the unit seeviad by chis seszee.es °
which is used, either diveccly or indireetiy, Fer | “" CAnaysi 0 |. Mesfaun
SNER Biting (or cooling) at the planc. (Chee., rig of Zuel/ process material T3232 _ hourls rsce
to Heat ex cool the alz ia a room) Uf thts scack #6 Fuel Oil : 35,382 ive _6.5M cal /ne
£5 not frei a fuel buzaing equipmenc, o¢ if fusi | ea fne
{s. burned but none of the heat is intended to heat lyr neo
or ccol aiz in a romn, enter a zero delow: : fi ae =
; Ive =
0 % "spece heat" : ivr /y- 3

eae -t——™

21

5 ENISSION INVENTORY QUESTIONNAIRE (Revised 11/74) " Paee 6 of 9 (sud

-
This pase 45 to te used to reevrd the data from one akack Cor other emission pointe) only, Ves
’
: as many tires as there are individual emission polnts, and use one pase for each pot. Note that my
mucters iniicate exploncetery notes on pages 4 and §.

Foint scurcs | Descriptive mene of the equipment served tefghe of stack | Stack diaz meters | Steck gas exis
iD nurter, by this stack . above grades temperature
5-73 - Fewerssus2 C No. 2 doiler 70 fe} 15.75 ft 3000-

---oo

o—
a .
————

' nurse Yq,

| S
.

Siack gas flew | Stack gas] If this stack serves a “boiles"),, give | % of annual chreughpuc of Normal oversee)
rate at preeess | exit the tyse(s) of fuel used end che hese | pollucants throush chis emis-| ing cine of
concitions, not l*veioctzy | ineut (f.e., fucl vate x heating value)| ston poine (rozels 100%) this oofar
aL standard oS 2: | ne 2 of fuel [Dees] “are 1 oune- ) Sepe-| nretdaveteas |
O°6.5.- WU CVs ue Ase fuel Foo way | acy 1 Nov G2y ‘vauklys
552,117 Ce?/mia 5) ft/seep 106 AYUsne 2d Fuel, if any |25%(25 2% | 25 % 25% | 241 2 15?
bandied
wame of Foilucion|Gontrel Average. [Maximuc | Annual Fisission Adc, change | Concentcation 1A
roilucant ecenzrol jequirzent | emisslonleaission|emission Jesci:sation! or delete gases exiting che
Jequipmaat{etiictancy] race rate rate nmstaod 4 cece g steck g
672 3g LI bali J lbs/he | tons/ye |
e [particulars master | Ceo | 3.0 105.9] Zits ‘ee | Add 202 or/sta fe4
euisee Aeiide | 4 | 650,09 | 138.0). 6 | ___Crenge | 1S8_ FP (OLS
aisrevon Atoutds OU ey | 657.8 | 667.8 | [6 Chonge |
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41

LAKE CHARLES PLANT
PPG INDUSTRIES, INC.

INSTRUCTIONS TO BIDDERS

RE: Specification K-2365
Construction of New Power Plant
At Lake Charles, Louisiana
February 16, 1971

1. DUE DATE
! Bidder shall submit his proposal as soon as possible
but not later than April 2, 1971.
i 2. PROPOSAL

: Bidder’s initial proposal shall consist of the accom-
panying Proposal Prices and Proposal Data Forms,
properly filled out. Ten (10) extra copies of these
} forms are enclosed for Bidder’s use.

3. PRICE INFORMATION

The main price shall appear only where called for in
the Proposal Prices and shall not appear elsewhere
in the proposal. Any alternate prices shall be given
on a separate price page and shall not be included
with Bidder’s technical or other nonprice data.

4. BID DOCUMENTS

A. The following are attached hereto and comprise
the Bid Documents:

a. Specification K-2365, including all drawings,
| standards and supplements referenced there-
in.

b. Exhibit A—General Terms and Conditions.
e. Specimen Contract Agreement.

B. Bidder shall notify PPG Industries immediately |
of any apparent omissions or conflicts noted in 4

42

the Bid Documents, and which affect any prices.
If any conflict appears between job sepcifica-
tions and standard specifications, the job specifi-
cations shall apply.

C. Any contract or purchase order resulting from
these Bid Documents will incorporate the terms
and provisions of said documents. It will be as-
sumed that Bidder agrees to the provisions of
said documents, unless exceptions are specifically
and clearly listed in his bid. All such exceptions
must be listed together and specifically identi-
fied as Exceptions. Bidder’s printed terms and
conditions are not considered specific exceptions.

5. INTENT OF CONTRACT DOCUMENTS

A. The intent of the Specifications is to provide
general conceptual guidance to establish opera-
tional requirements or standards. The Contrac-
tor is expected to develop, from engineering
data and economic studies, the plans and specifi-
cations for, and construct a modern, efficient
power plant consistent with the requirements es-
tablished in the Contract Documents.

B. It is the intent that Bidder’s proposal shall be
based on furnishing all domestic materials.
Local or Louisiana suppliers should be used
where competitive. If Bidder wishes to offer
any materials or equipment of foreign manu-
facture, he shall designate these as such and
list the savings to PPG Industries in each such
category.

6. EXAMINATION OF SITE

A. Contractor shall have visited the job site during
Bid Period to familiarize himself with condi-
tions under which the WORK is required to be
done.

43

B. Contractor shall carefully examine the site of
WORK and the adjacent premises, and shall
conduct the necessary investigations to inform
himself thoroughly as to the facilities for han-
dling the equipment at the site and difficulties
involved in the completion of all work

C. Contractor’s plea of ignorance of existing or
foreseeable conditions which will create difficul-
ties or hindrances in execution of WORK is not
acceptable as excuse for any failure on part of
Contractor to fulfill in every detail all require-
ments of Specification and/or drawings. Fur-
thermore, Contractor’s plea of ignorance not ac-
ceptable as basis for any claim whatsoever for
additional or extra compensation.

D. Bidders are requested to attend a prebid confer-
ence and tour of the project rite. Please call Mr.
F. E. Landry or Mr. W. Stagg at PPG Indus-
tries no later than March 5 at area code 318
Phone 882-1200 for further information regard-
ing the time and meeting place.

7. ADDENDA

Addenda to the Contract Documents may be issued
prior to the date of opening of the bids to clarify
the documents or to reflect modifications in the de-
sign or Contract terms. Each addendum issued by
PPG Industries will be distributed to each person or
organization to whom a set of the Contract Docu-
ments has been issued. The recipient will acknowl-
edge receipt of each addendum by signing and re-
turning the receipt form distributed with the adden-
dum. All addenda issued by PPG become a part of
the Contract Documents.

. LICENSING OF CONTRACTORS

Bidders are advised that Act 233 of 1956 of the
State of Louisiana requires that all Contractors and
Subcontractors on. any contract amounting to $30,-

CCCs

10.

44

000 or more, must be licensed under said Act before
performing any work thereon, and must comply with
the terms and provisions of said Act. The Contract
covering the work hereunder will contain a require-
ment to this effect and that any such licensing costs
shall be borne by Contractor.

PROPOSAL DISTRIBUTION

Proposal must be made out in septuplicate and sent
to:

PPG Industries, Inc.

One Gateway Center

Pittsburgh, Pa. 15222

Attention: Mr. D. C. Rhodes

Purchasing Manager, Central Engineering

1209 Allegheny Towers

The envelope, addressed as below, must be sealed
and identified as follows:

PROPOSAL—CONFIDENTIAL

LAKE CHARLES PLANT

Specification K-2365

Construction for 1973 Power Expansion at
Lake Charles, Louisiana

QUESTIONS DURING BID PERIOD

All questions should be directed to Mr. F. E. Landry
or Mr. W. Stagg at PPG Industries in Lake Charles,
Louisiana, Area Code is 318, Phone 882-1200. Post
Office Box Number is 1000.

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49
Oct. 5, 1976 NSPS
CERTIFIED MAIL—RETURN RECEIPT REQUESTED #819271

Mr. T. G. Taylor

Technical Manager entered CDS 10-6-76
PPG Industries, Inc. GOB
P. O. Box 1000

Lake Charles, Louisiana 70601

Dear Mr. Taylor:

Your letter and attachments of June 28, 1976 have been
received and reviewed. Based on the information in that
letter and your earlier submittal of May 14, 1976, we
have determined that the Standards of Performance for
New Stationary Sources [40 C.F.R. Part 60] apply only
to the two waste heat steam generators of Powerhouse
C located at the Lake Charles, Louisiana plant.

The applicability of the New Source Performance Stand-
ards (NSPS) is determined solely by the facts applicable
to the specific facilities for which NSPS regulations have
been issued. It is not considered relevant for NSPS pur-
poses that the gas turbines for Powerhouse C were or-
dered in 1970. The purchase order you submitted on the
waste heat steam generator showed that the unit was
ordered on October 14, 1974. Because the contractual
obligation to construct the steam generators was after
the date of the proposed regulations for fossil fuel fired
steam generators, August 17, 1971, the waste heat steam
generators numbered 1 and 2 of Powerhouse C are sub-
ject to the provisions of the Standards of Performance
for Fossil Fuel Fired Steam Generators, 40 C.F.R. Part
60, Subpart D (a copy of which is enclosed).

The two waste heat steam generators are subject to the
notification and recordkeeping requirements of 40 C.F.R.
60.7 and the performance tests requirements of 40 C.F.R.
60.8 (copies of which are enclosed).

50

If you have any questions concerning this matter, you
may contact Mr. Gary Bernath of my staff by letter or
by telephone at (214) 749-7675,

Sincerely yours,
ORIGINAL SIGNED BY

O. W. Lively
Acting Director
Enforcement Division (6AE)

Enclosure a/s

cc: Mr. James Coerver
Technical Secretary
Louisiana Air Control
Commission
P. O. Box 60603
New Orleans, Louisiana 70160

bee: DSSE, Washington, D. C.

JV
6AEL.JVeach :maX2142 :9-30-76’

JC JF GOB JD
6AEL 6AEA 6AEA 6AEA
Collins Bernath Fahrenthold Doyle
10/1/76 10/1/76 10/1/76 10/4/76

[Italicized material appears as handwritten
notations in record]

51

[PPG Emblem}
INDUSTRIES
0520 00004
(318) 882-1200
FTS 687-4181

PPG Industries, Inc. Industrial Chemical Division
P. O. Box 1000 Lake Charles, La. 70601

T.C. TAYLOR
Technical Manager

November 12, 1976

Mr. O. W. Lively, Acting Director
Enforcement Division

U. S. Environmental Protection Agency
First International Building

1201 Elm Street

Dallas, Texas 75270

Dear Mr. Lively:

We had hoped to discuss with you in person some of the
points raised in your letter dated October 5, 1976. Since
this meeting has been postponed, we respectfully request
you to reconsider the matter of the two waste heat steam
generators of Powerhouse C for the reasons given below.
If you agree, a meeting may not be necessary.

We contend that the gas turbine purchased in 1970 is
relevant with respect to the waste heat boilers. Actually,
this purchase was part of a commitment, including design
and engineering, to a total power/steam generation pack-
age for our new chlor-alkali production facilities,

Unlike commercial power plant installations, which pro-
duce only electric power, Powerhouse C had to be de-
signed to satisfy the power and steam requirements of
the chemical complex it would serve. A reliable source
of both steam and power is essential to chlorine plants
where electrolysis of brine and concentration of caustic

52

by evaporators are major process steps. Due to the vari-
able requirements for both power and steam within the
process units, flexibility was a key ingredient in the de-
sign of the new powerhouse. PPG selected as the most
efficient method of satisfying the required power/steam
balance a combined-cycle system consisting of two gas
turbines exhausting into two eupplementally-fired waste
heat boilers, the steam from which would be used to
drive one turbogenerator, which, in turn, furnishes steam
for the caustic evaporators and other process steam users.
(See Sargent & Lundy Dwg. M-105, dated 1-26-71, at-
tached. )

On November 11, 1970, PPG issued the attached purchase
order (267-001) to General Electric Company for the
two gas turbines and turbogenerator. Item 3, the turbo-
generator, would be completely useless without the steam
generators (waste heat boilers) that were subsequently
purchased. The turbines and boilers will operate as one
unit and each was designed in conjunction with the
other. The fact that the waste heat boilers were pur-
chased separately and at a different time was dictated
by the long delivery time of the turbines and generator
and by the need for efficient utilization of capital.

The purchase of the gas turbines and turbogenerator in
1970 represents a commitment of $9.4 million, covering
two-thirds of the equipment purchased in the combined-
cycle power plant. Thus, we contend that, with the design
engineering and substantiation as evidenced by the above-
stated purchase order, all committed prior to August 17,
1971, for the construction of a combined-cycle plant, PPG
“commenced” a continuous program of construction which
excepts Powerhouse C from Part 60, New Stationary
Sources Regulation.

If you have further questions, we believe that a confer-
ence in person would best expedite this serious misunder-
standing. Please direct your inquiries to me. Thank you
for your courtesies and prompt attention to this matter.

53
Sincerely,

T.G. Taylor
T. G. Taylor

edh
Attachments

ec: G. P. Cheney
J. F. Coerver

(Italicized material appears as handwritten
notations in record]

54
[PPG Emblem]
INDUSTRIES

One Gateway Center
Pittsburgh, Pa. 15222

Order No. 267-001

Requested by Requisition No. Charge Number
F. E. Landry CE-001 G.O. 267
Affirming Verbal Order Inquiry No. Date of Order
Below See Reply 11-11-70
Notify Required Delivery Quoted Delivery
F. E. Landry As Below As Below
Rhodes Quotation No./Date FOB
See Below Factory/Frt. Allow !
Terms Ship VIA
See Below Best Way
General Electric Company
Industrial Sales
Oliver Building
Mellon Square
Pittsburgh, PA 15222
Atten: Mr. H. E. Finke
Quantity Description Price

2
General Electric heavy duty MS 7000 Series |
combustion gas turbine generator units,
each unit consisting of the equipment listed
on the G. E. Quotation No. 341-78254 dated
October 30, 1970, and signed by Howard
E. Finke (Rev. 11-12-70)
$7,656,600.00/
Lot

Technical direction of installation for the
gas turbines as per quotation No. 4251-
70007 dated 9-15-70 and signed by M. I.
Cleveland

$38,020.00/each

General Electric steam turbine sized for the
following conditions:

Inlet conditions: 1250 psig—960°F. Auto- (
, Matic Extraction 216,000 #/hr. @ 600 psig.

55

Automatic Extraction—483,000 #/hr. @
260 psig. Exhaust—217,000 #/hr. @ 120
psig. Complete with hydrogen cooled 44,000
KVA, .85 power factor, 60 cycle, 3 phase,
3,600 RPM, 13,800 Volts, 158 short circuit
ratio, synchronous generator, with coolers
designed for 95°F and 125 psig cooling
water. To be complete with accessories and
other equipment listed on G. E. Quotation
# 341-73254-B (Rev.) dated November 6,
1970, and signed by Howard E. Finke. This
price covers technical supervision of instal-
lation

$1,786,805.00/
Lot

All prices above for both gas turbines,
generators, steam turbines, etc. cover
freight to accessible railsiding nearest cus-
tomer’s site.

Any omissions in this Purchase Order, but
specified in the quotations of General Elec-
tric Company (“seller’’) referred to above,
will apply.

PPG Industries, Inc. “purchaser” reserves
the right to accept or reject a five year,
40,000 hour, maintenance contract on the
gas turbines beginning on the commercial
operating date at a cost of $13.75 per fired
hour per unit based on base load service,
natural gas fuel and one start per 1000
hours or less. The $13.75 per fired hour
would be subject to change each year after

“the first year of the contract based on esca-

ji

lation of labor and/or materials from the

_ date of commercial operation. This decision

on the maintenance contract does not have
to be made by the purchaser until the com-
mercial operating date.

The price would cover parts or repair, tech-
nical direction, monthly inspection and labor
for all normal maintenance. This does not
include breakdown coverage.

The purchaser has the right to purchase a
spare rotor for the gas turbines within
twelve months after date of purchase order,
for a price of $590,000.

56

Terms of Payment

Eighty percent upon shipment from seller’s
factory, fifteen percent thirty days from
date of shipment and five percent upon com-
pletion but not later than 180 days from
date of shipment, provided that sellers shall
have fulfilled all provisions of the Purchase
Order as far as possible up to the time
specified.

Cancellation

The purchaser shall have the right to termi-
nate this Purchase Order by written notice
to seller on or before May 1, 1971, if pur-
chaser’s Board of Directors have not there-
tofore authorized the construction by pur-
chaser of a 1500 tons per day chlorine
caustic soda plant facility at Lake Charles,
Louisiana, and the requisite power gener-
ating facilities therefore, or if the plant
facility thus authorized shall not require
gas turbines; provided, however, that if
purchaser shall so terminate this Purchase
Order, purchaser shall pay seller a termi-
nation charge in the amount of $21,000,
upon payment of which sum all obligations
of either party to the other hereunder shall
terminate. The purchaser shall have the
right to terminate this Purchase Order after
May 1, 1971, but prior to June 1, 1971,
under sam terms, for an additional charge
in the amount of $10,000 for steam turbine
and not to exceed $150,000/Lot for two
(2) gas turbines.

Delivery

Seller will ship the gas turbines by Septem-
ber, 1972. The steam turbine will be shipped
18 months after final steam output quanti-
ties are decided upon. Seller will provide
purchaser with production schedule promptly
and on a monthly basis thereafter.

Transfer of Ownership

Purchaser reserves the right to assign or
transfer this Purchase Order in its entirety
to a third party, without any additional cost
or penalties whatsoever to purchaser or such

57

third party assignee as a result of such
assignment; provided such third party as-
signee shall undertake to construct and own
the power generating facilities requisite to
purchaser’s said chlorine-caustic soda plant
facility.

Performance and Material Warranty

The seller has the obligation to make at its
own expense such alterations and additions
or replacements as required to meet specifi-
cations for a period of one year after start-
up date.

Guarantee

The seller will guarantee materials or equip-
ment and workmanship to be free of defects
for a period of one year from start-up or
18 months after delivery whichever comes
first. Any repairs, alterations, or replace-
ments found to be necessary shall be made
at no cost whatsoever to purchaser. Each
such repair, modification, or replacement
shall carry same warranty commencing on
the date of the installation as the original.
If the seller does not remedy and/or replace
the work to comply with the foregoing re-
quirements within a reasonable time after
written notice, the purchaser may remedy
and/or replace it at sellers expense.

Seller will furnish as soon as possible:
Copies Title

7 Certified dimension prints

7 Performance curves

7 Installation, operation and mainten-
ence instructions

7 Parts list and assembly drawings

including bearings identification by

Bearing Mfg. name and symbol or

number, etc.

Recommended spare parts list with

prices

Lubrication manuals

Wiring diagrams

Any other data necesary to install,

maintain, and operate the above

equipment

Aaa 4

58

(One (1) reproducible of each may
be furnished in lieu of copies as
shown)
Confirming verbal order of November 11,
1970, to: J. J. Broussard, H. E. Finke, Don
Govdon, Jack Hull

4pproved Nov. 11, 1970
L. W. Wilcox

[Italicized material appears as handwritten
notation in record]

i na a 5 TE LE Ta i

59
LA O S 20-04
NSPS
DEC 23 1976

Mr. T. G. Taylor

Technical Manager

PPG Industries, Inc.

P.O. Box 1000

Lake Charles, Louisiana 70601

Dear Mr. Taylor:

We have reviewed your letter of November 12, 1976
concerning the two steam generators of Powerhouse C.

As we stated in our letter of October 5, 1976, the ap-
plicability of the New Source Performance Standards
(NSPS) depends solely on the facts relating to the types
of equipment for which NSPS regulations have been
issued. The regulations apply to a facility the construc-
tion or modification of which is commenced after the
date of publication of any standard (or, if earlier, the
date of publication of any proposed standard) applicable
to that facility. The information you have provided shows
that the commencement of the construction of the two
steam generators was after the publication of the pro-
posed regulation for fossil fuel fired steam generators.
Even though you may have ordered equipment before the
date of the proposed regulations that would be com-
pletely useless without the steam generators, that action
is irrelevant to determine the applicability of the regula-
tions to the two steam generators.

We hope that this discussion makes it clear why the two
steam generators are subject to the provisions of the
Standards of Performance for New Stationary Sources,
40 CFR Part 60.

If you still desire to have a meeting discussing this de-
termination, please contact Mr. James Veach of my staff
by letter or by telephone at (214) 749-2142.

60
Sincerely yours,

Original Signed By

O. W. LIVELY
Acting Director
Enforcement Division

JV12/6
6AEL:J Veach :ma:X2142:11-76:Retyped :12-6-76

JV12/6
6AEL
Collins

6AEA
Bernath

JF
Fahrenthold
6AEA
12/17/76

ec: Mr. James F. Coerver
Technical Secretary
Louisiana Air Control
Commission
P. O. Box 60630
New Orleans, Louisiana 70160

bec:DSSE

[Italicized material appears as handwritten

notation in record]

DS Sa Vane Seen)

2S ee

61
ENVIRONMENTAL PROTECTION AGENCY

VI Bila
File Code
12-29-76
MEMORANDUM:
SUBJECT: Determination of Applicability to NSPS
Subpart D.
FROM: Director, Division of Stationary Source
Enforcement
TO: | O.W. Lively, Acting Director

Enforcement Division (6AE)

This is in response to your memo of December 7, 1976,
requesting a determination as to whether a waste heat
recovery boiler used to produce steam would fall under
NSPS for fossil fuel fired steam generators.

Section 60.41(a) defines a fossil fuel fired steam gen-
erating unit to be “a furnace or boiler used in the proc-
ess of burning fossil fuel for the purpose of producing
steam by heat transfer.”

Since the boiler in question is not used in the process
of burning fossil fuel, but rather in the process of waste
heat recovery, it is our determination that the boiler in
question would not be a fossil fuel fired steam generator
as defined under NSPS, Subpart D.

If you have any further questions on this determina-
tion, please contact Craig Cobert (202) 755-2564 of my
staff.

/s/ EER
Edward E. Reich

[Italicized material appears as handwritten material in
record; concurrence and routing notations and date-
received stamp omitted in printing]

62

UNITED STATES ENVIRONMENTAL
PROTECTION AGENCY

DATE: Dec. 7, 1976

SUBJECT: Request for Determination Relative to Subpart
D, NSPS

FROM: O. W. Lively, Acting Director
Enforcement Division (6AE)

TO: Ed Reich, Director
Division of Stationary Source Enforcement
(EN-341)

This is to request that you render a determination of
applicability to NSPS, Subpart D, for the following situ-
ation.

A power generating station is operating gas and oil fired
turbines. The exhaust from the turbines is routed to a
waste heat recovery boiler where it is used to produce
steam. However, no combustion of either the exhaust
gases or supplementary fuels occurs in the boiler. The
heat input to the boiler as a result of the exhaust gases
is in excess of 250 MM Btu/hr.

The question of applicability arises from a reading of
Section 60.40 and 60.41(a). The former states that Sub-
part D applies to each fossil-fuel fired steam generating
unit (of appropriate size). Section 60.41(a) defines a
steam generating unit to mean a boiler “used in the
process” of generating steam. What we have is a boiler
“used in the process” of generating steam, although the
combustion of the fossil fuel takes place in the turbine
unit rather than the boiler.

We feel this situation to be of sufficient novelty to re-
quest your determination. Should you need additional

information, you may contact Gary Bernath of my staff
at (214) 749-7675.

[Handwritten notations omitted in printing]

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64

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65

[PPG Emblem]
INDUSTRIES

PPG Industries, Inc./One Gateway Center
Pittsburgh, Pennsylvania 15222/Area 412/434-2145

GEORGE P. CHANEY, JR., Assistant Counsel

April 13, 1977

[Received EPA Region VI, 1977 Apr. 14 AM 9:07,
Enforcement Division ]

Mr. Howard Bergman

Director, Enforcement Division
Environmental Protection Agency

Region VI

1600 Patterson Street :
Dallas, Texas 75201

Re: Request for Determinations under 40 C.F.R.
§ 60.5.

Dear Mr. Bergman:

By this letter, PPG Industries, Incorporated, (“PPG”),
seeks a determination that construction of two “waste
heat” boilers, components of “Power Plant C” at PPG’s
Lake Charles, Louisiana works (“Lake Charles Works’’)
was “commenced” within the meaning of Section 111
(a) (2) of the Clean Air Act, as amended, 42 U.S.C.
§ 1857c-6, prior to August 17, 1971, the date of proposed
“new source” emission regulations for fossil-fuel fired
steam generators. Alternatively, PPG seeks a determi-
nation that the regulations for fossil-fuel fired steam
generators do not apply to waste heat boilers such as
those being installed at the Lake Charles works. This
request for determinations is submitted pursuant to 40
C.F.R. § 60.5 (captioned “Determination of construction
or modification”’).

Power Plant C is a fully coordinated power generating
system, composed of two gas.turbine generators (produc- .

66

ing electricity) and two “waste heat” boilers (producing
process steam). The first of the gas turbines will begin
operation by the end of April of this year, and the com-
panion “waste heat” boiler is projected to go on line in
June. The second set of such units (turbine plus “waste
heat” boiler) is scheduled for start-up in the third quar-
ter of 1978. The determinations sought by PPG are
essential to clarify tentative findings contained in a
letter from Mr. O. W. Lively, Acting Director, Enforce-
ment Division, Region VI, dated October 5, 1976, which
findings have been the subject of continuing subsequent
correspondence and discussion.

Should it be determined both that construction of the
“waste heat” boilers of Power Plant C was not “com-
menced” until after August 17, 1971, and that the new
source regulations for fossil-fuel fired steam generators
apply to such “waste heat” boilers, PPG by this letter
seeks an interpretation of the regulations as applied to the
“waste heat” boilers. Because of the manner in which
the standards of performance are written (explicit for-
mulas set out allowable emissions where specified fuels
are used), they cannot be readily applied to the “waste
heat” boilers. The regulations would in some way have
to be adapted to take into account the fact that only
part of the heat used is created by the firing of fuel
within the boilers themselves.

To aid in your consideration of this request, two memo-
randa are appended. Appendix A is a statement of the
facts relevant to the determinations sought by PPG. Ap-
pendix B is a memorandum prepared by counsel based on
those facts analyzing the relevant provisions of the
Clean Air Act and implementing regulations.

The long and short of the matter is that the present
regulations for steam generators seem to have been con-
strued to prevent, or at least to tend to prevent, the
possibility of “recapturing” waste heat, a very desirable
goal from both an energy conservation and economic
standpoint. On the other hand, if the turbines were
operated independently of the boilers, i.e., if no attempt
were made to use the waste heat from the turbine exhaust
in the boilers, full compliance with the EPA standards

67

of performance could be achieved. This anomaly is espe-
cially troubling to PPG since the design of and course of
construction for the combined turbine-“waste heat’’ boiler
units was set in 1970, well before the advent of the
standards of performance.

Very truly yours,

/s/ George P. Cheney, Jr.
GEORGE P. CHENEY, JR.
Assistant Counsel

emr
Attachments

ec: Edward E. Reich
Director, Division of Stationary
Source Enforcement
Environmental Protection Agency
401 M Street, S.W.
Washington, D.C. 20460

[Italicized material appears as
handwritten material in record]

68
APPENDIX A
MEMORANDUM OF FACTS

This memorandum sets out circumstances surrounding
the design and construction of a new power plant at the
Lake Charles, Louisiana works (“Lake Charles works’)
of PPG Industries, Inc. (“PPG”). The purpose of this
new power plant, known as “Power Plant C”, was and
is to generate electricity and process steam for the manu-
facture of chlorine and caustic soda at the works.

A. Design Work

PPG became engaged in the overall design and construc-
tion of Power Plant C in 1970. The design established
at that time called for the construction of two gas tur-
bine generators (producing electricity) and two “waste
heat” boilers (producing process steam). The “waste
heat” boilers, as their name suggests, were designed to
recapture the turbine exhaust gases from the gas turbine
generators. The boilers would do so by using the heat
within those exhausts, which would otherwise be waste-
fully dissipated into the atmosphere, for the generation
of steam. The costs associated with the generation of
electricity in Power Plant C were such that the project
could not have been contemplated without having built
into it a capacity to make fruitful use of the heat cast
off by the gas turbines.

Based upon the design specifications for the “waste
heat” boilers, 38.3 percent of the heat used to generate
steam within the “waste heat” boilers will be supplied by
the exhausts from the gas turbine generators. The re-
mainder of the heat used by the “waste heat” boilers will
be produced by the firing of fuel oil or gas within the
units themselves.!

* Taking on. of the boilers hy itself, 598 MM BTU/hr is to be
provided by the firing of oil, and 371.2 MM BTU/hr is to be pro-
vided by the “waste heat” from the exhaust from one of the
turbines.

ee

69

B. Contracts

The gas turbine generators were ordered in Novem-
ber, 1970. The specification book for the whole of Power
Plant C was completed by the end of February, 1971.

Once the design of the gas turbines was determined
and orders for them were placed, there were very few
design options as to how the “waste heat” boilers could
be built to accommodate the turbines. In fact, insofar
as the quality of emissions might be affected, only three
possible methods of firing the “waste heat’ boilers ex-
isted: (1) front firing, (2) tangential firing, and (3) gas
recirculation. The design actually chosen by PPG—tan-
gential firing—minimizes the amount of nitrogen oxides
passed by the system into the atmosphere. Thus, once the
design of the gas turbines was settled and the turbines
were placed on order, PPG could not have constructed
“waste heat” boilers with emission characteristics more
favorable than those actually constructed, while the eco-
nomics of the system as a whole absolutely required that
some form of “waste heat” boiler be built.

C. Construction Work

Some early work on the site of Power Plant C (level-
ing, cutting trees, general site preparation, etc.) was
carried out in the summer of 1971. Further construction
was not conducted immediately. In addition to the fact
that the turbines had not been delivered, PPG encoun-
tered serious difficulties in securing a long-term supplier
of fuel. Both matters were resolved, but the resolution
of them took time.

1. The first set of turbine-boiler units.

In October of 1974, the purchase order for the first
of the two “waste heat” boilers was issued to Combus-
tion Engineering, Inc. The foundation for the first of the
“waste heat” boilers of Power Plant C was poured on
September 18, 1975, and the actual assembly of this boiler
began on February 1, 1976. The foundation for the first
of the gas turbine generators was poured beginning on

70

November 19, 1975; the assembly of this gas turbine
began on April 8, 1976.

The first of the gas turbines was accepted from the
contractor on February 23, 1977. This turbine is ex-
pected to begin operation on- or about the first week of
May. Acceptance of the first “waste heat” boiler is an-
ticipated on or about May 15, 1977, and actual start-up
of this boiler is expected around June 1, 1977.

2. The second set of turbine-boiler units.

The foundation for the second of the gas turbine gen-
erators ordered in 1970 was poured on February 15,
1977. It is anticipated that this second gas turbine will
be in operation by mid-1978. The order for a “waste
heat” boiler to be associated with this second gas turbine
generator was placed on June 16, 1976, and the founda-
tion for this second boiler was poured on December 22,
1976. Operation of this “waste heat” boiler is expected
in the third quarter of 1978.

D. Projected Operating Characteristics

On the basis that 1 percent sulfur No. 6 fuel oil will
be fired in the “waste heat” boilers, the amount ‘of sul-
phur dioxide discharged by those boilers will be 0.67 lbs.
per million BTU of heat from all sources used in the
“waste heat” units themselves, and 0.50 Ibs. per million
BTU of heat introduced into the electricity and steam
generating system of Power Plant C as a whole.

Projections for emissions of Nitrogen oxides from the
combined turbine “waste heat” boiler units are uncertain.
However, on the basis of the engineering work completed
to date, the total amount of nitrogen oxides discharged
under gas turbine inlet conditions of 75° farenheit and
60 percent relative humidity by the “waste heat” boilers
should be approximately 0.39 lbs. per million BTU of
heat from all sources used in the “waste heat” boilers.?

2 The “waste heat” in the turbine exhausts entering the boilers
should contain approximately 0.63 Ibs. NOx per MM BTU. The
amount of nitrogen oxides discharged by the “waste heat” boilers
attributable solely to fossil fuels fired within the boilers themselves

71

This is equivalent to approximately 0.29 lbs. per million
BTU of heat introduced into the system of Power Plant C
as a whole from all sources of energy.

Were the exhausts from the gas turbine generator al-
lowed to pass directly into the atmosphere without being
recaptured by the “waste heat” boilers, they would be ex-
pected to contain 0.835 lbs. of nitrogen oxides per MM
BTU of heat derived from fossil fuel combustion within
the turbine generator.

/s/ George P. Chenep
GEORGE P. CHENEY, JR.
Assistant Counsel
PPG Industries, Inc.

One Gateway Center

Pittsburgh, Pennsylvania
15222

(412) 434-2145

Dated: April 12, 1977

[Italicized material appears as handwritten
material in record]

is expected to be roughly 0.24 Ibs. per MM BTU derived from
such fossil fuels. The NOx discharged by the “waste heat” boilers
per MM BTU from all sources entering the boiler is:

X = (598.3) (0.24 + (371.2) (0.63) =0.39

969.5

72
APPENDIX B

MEMORANDUM OF LAW

This memorandum first assays the statutory provisions
and regulations applicable to a determination whether the
“waste heat” boilers at the Lake Charles, Louisiana
works (“Lake Charles works”) of PPG Industries, Inc.
(“PPG”), are new sources within the meaning of the
Clean Air Act. Then it turns to a consideration of
whether the “waste heat” boilers are covered or affected
by the new source standards of performance for fossil-
fuel fired steam generators. Finally, this memorandum
assesses the difficulties of application which arise if the
new source regulations are deemed to pertain to the
“waste heat” boilers. The factual basis for the discussion
in this memorandum is contained in the accompanying
Memorandum of Facts.

Suggested determinations are set out in the conclusion
of this memorandum.

I. THE “WASTE HEAT” BOILERS OF POWER
PLANT C ARE NOT “NEW SOURCES” WITH-
IN THE MEANING OF THE CLEAN AIR ACT

A. Power Plant C As A Whole Is Clearly Not A
“New Source” Within The Meaning Of The
Clean Air Act And Implementing Regulations

Under Section 111(a) (2) of the Clean Air Amend-
ments of 1970, as amended, 42 U.S.C. § 1857c-6 (a) (2),
the term “new source” means “any stationary source, the
construction or modification of which is commenced after
the publication of regulations (or, if earlier, proposed
regulations) describing a standard of performance under
this section which will be applicable to such source.”
Under the EPA regulations, construction has “com-
menced” if “an owner or operator has undertaken a
continuous program of construction .. . or has entered
into a contractual obligation to undertake and complete,
within a reasonable time, a continuous program of con-
struction... .” 40 C.F.R. § 60.2(i). Proposed regula-

73

tions for fossil-fuel fired steam generators were promul-
gated on August 17, 1971. Well before that date, PPG
had undertaken a continuous program of construction re-
specting Power Plant C.

The planning and design for Power Plant C were be-
gun in the 1960’s. The order for the construction of the
central facilities of Power Plant C, the gas turbine gen-
erators, were issued on November 11, 1970. The specifica-
tion book for the whole of Power Plant C was completed
by the end of February, 1971. Site preparation work
was accomplished in the summer of 1971. PPG thus
established the course of construction in November of
1970 and that course has been continuous down to the
present and will remain so until the entire system is
complete.

B. The “Waste Heat” Boilers Are Fully Inte-
grated Parts Of Power Plant C, And The
Course Of Their Construction Cannot Be
Severed From That Of The Power Plant As
A Whole

As a matter both of design and economics the construc-
tion of “waste heat” boilers could never have been con-
sidered, and was not considered, to be a matter separate
from the construction of the gas turbine generators or of
Power Plant C as a whole. The design work for the
turbines reflects the design criteria for the “waste heat”
boilers, and vice versa. The Lake Charles works needs
the new power plant both to generate electricity and to
manufacture process steam for the production of chlorine
and caustic soda at the works. The most energy-efficient
way to accomplish these twin goals is to employ a design
which recaptures the very considerable heat value in the
exhaust gases from the gas turbine generators. “Waste
heat” boilers provide the mechanism for this recapture.
From both an economic and an energy standpoint, the
project would not be feasible unless the “waste heat”
boilers could be employed as a complement to the gas
turbine generators.

In short, once PPG was committed to building the gas
turbine generators, it was not less committed to build the

74

“waste heat” boilers. Even though the actual order for
the first “waste heat” boiler was not made to Combustion
Engineering until October of 1974, PPG was bound to
construct the “waste heat” boilers as of the time (No-
vember 1970) it was committed to the purchase of two
gas turbine generators. The “waste heat” boilers cannot
be severed from the turbine generators upon which they
depend. Looking merely to the October 1974 date on a
written communication between PPG and Combustion
Engineering as the sole basis for determining when con-
struction of the “waste heat” boilers was “undertaken”
(the term used in the regulations) by PPG, is, in the
context of this integrated facility, very misleading. The
undertaking was begun much earlier. The preliminary
work and initial site preparation for all the components
of Power Plant C were begun at one time; there was no
separate program for constructing gas turbine generators
apart from “waste heat” boilers.

C The Decided Cases Do Not Warrant Treating
The “Waste Heat” Boilers Of Power Plant C
As “New Sources”

The purpose for distinguishing “new sources” from
other sources under the Act and regulations is to avoid
undue burdens on those owners or operators who have no
means of adjusting their existing facilities or their in-
escapable obligations. Once committed to the construction
of the gas turbine generator component of Power Plant
C, PPG had (and now has) no choice but to press the
project to its conclusion by constructing the necessary
“waste heat” boilers. No design adopted by PPG could
have reduced emissions below the levels associated with
the current “waste heat’ boilers.

Two recent judicial decisions bear on resolution of
when PPG “commenced” construction of Power Plant C.
In Montana Power Company v. Environmental Protection
Agency, F. Supp. ——, 2 PCG { 40,065 (D. Mont.,
decided January 27, 1977), the court concluded that con-
struction of a power plant had commenced prior to the
effective date of EPA’s regulations for the prevention of
significant deterioration, within the definition of “com-

75

mence” in 40 C.F.R. § 52.21(b) (7). In the Montana
Power case, although actual on-site construction had not
begun by the effective date, the court found that EPA
had failed to give due consideration to the prior irre-
vocable commitment of substantial funds and resources
to the project and thus that construction had in fact
“commenced” within the meaning of the regulations.

On the other hand, another federal court recently de-
termined that a coal-fired generating plant actually or-
dered by a municipality after the promulgation of stand-
ards affecting such facilities was a “new source” within
the meaning of the Clean Air Act and regulations.
United States v. City of Painesville, —— F. Supp. .
Civil Action No. 76-234 (N. D. Ohio, decided J anuary 19,
1977). The court concluded that the City of Painesville,
unlike PPG in the present situation, had entered into no
binding commitment to build anything at all until after
the date upon which the “new source” standards began
to apply. The court further found that the City had
actually changed the specifications of its coal-fired gener-
ating plant in January of 1972, well after the August
1971 effective date for the regulations.

The present circumstances are comparable to the facts
in the Montana Power case, and differ considerably from
the setting of the Painesville decision. PPG was fully
committed to the construction of Power Plant C before the
new source standards for fossil-fuel fired steam genera-
tors were proposed. Second, in the Painesville case the
court stresses the fact that no purchase of equipment
actually made by the municipality prior to the promulga-
tion of new source standards would have been “incom-
patible” with a facility which complied with the new
source standards. (Slip opinion, at 6.) By way of con-
trast, in the present situation, PPG had by August 1971
committed itself to the combined turbine“waste heat”
boiler design which is at odds with the new source stand-
ards for boilers.

Especially noteworthy is the fact that preclusion of use
of the waste heat in the boilers would have no favorable
effects whatsoever on the environment; the exhausts from
the gas turbine of Power Plant C would then pass di-

ee ee a ee re

76

rectly into the atmosphere with their full cargo of pol-
lutants, and process steam would have to be generated
entirely by firing fossil fuel. Additional reasons for
avoiding such an unwholesome result, both environmen-
tally and economically, will be reviewed in Part II below.

Il. EVEN IF IT IS CONSIDERED THAT CON-
STRUCTION DID NOT COMMENCE PRIOR TO
AUGUST 17, 1971, A “WASTE HEAT” BOILER
IS NOT A FACILITY COVERED BY THE REG-
ULATIONS GOVERNING “NEW SOURCES”

A. The Existing Regulations Are Not Structured
To Apply To Steam Generators Fired By A
Combination Of Fossil Fuels And “Waste
Heat”

The only regulations that could possibly establish emis-
sions standards for “waste heat” boilers are those gov-
erning “fossil-fired steam generators” in Part 60, Sub-
part D, of Title 40 of the Code of Federal Reg»lations.
Those regulations govern facilities that produce steam by
burning “fossil fuel.” 40 C.F.R. § 60.41. But “waste
heat” boilers are fired by a combination of waste heat
and fossil fuel, and it is the special circumstances aris-
ing from the combination which the regulations do not
address.

As promulgated, the regulations were not written to
pertain to boilers relying in significant part on certain
waste fuels. The standard for nitrogen oxides, for exam-
ple, excluded from its coverage situations where new
boilers were built for fuel consisting of “lignite or a
solid fossil fuel containing 25 percent by weight, or more
of coal refuse....” 40 C.FR. § 60.44(b). A recently
proposed amendment to the regulations would, however,
establish standards for emissions of nitrogen oxides from
new lignite-fired steam generators. See 41 Fed. Reg.
55792 (December 22, 1976).

In addition, the standards were amended on Novem-
ber 22, 1976, to provide specific language bearing on
fossil-fuel fired steam generators which also used wood
residue as fuel (commonly called “hog boilers”). See 41
Fed. Reg. 51897-51400 (November 22, 1976).

77

These recent changes and proposed changes in the
regulations clarify matters for those who wish to fire
boilers with waste fuels. However, they do not address
specifically the present situation where “waste heat”’ it-
self is sent to the boiler. The regulations simply are not
structured to apply to the present situation.

B. The Existing Regulations Should Be Deemed
Not To Apply To “Waste Heat” Boilers

Where regulations are not written to apply to a special
set of facts, the regulations should be deemed not to apply
in circumstances where the special facts are present.
See WAIT Radio v. Federal Communications Commission,
135 U.S. App. D.C. 317, 321, 418 F.2d 1158, 1157 (1969).
The Agency has already adopted this. course of action in
adopting the special regulatory provisions for hog boil-
ers referred to above. Similarly, the existing regulations
should be deemed not to apply to “waste heat’ boilers.

Ill. IF THE REGULATIONS ARE DEEMED TO
APPLY TO THE “WASTE HEAT” BOILERS
AT THE LAKE CHARLES WORKS, THEY
SHOULD BE ADAPTED TO TAKE INTO AC-
COUNT THE FACT THAT ONLY PART OF
THE HEAT USED IS CREATED BY THE
FIRING OF FUEL WIHIN THE BOILERS
THEMSELVES

A. The Standards For Nitrogen Oxides Cannot
Be Brought To Bear On The “Waste Heat
Boiler

The standards for nitrogen oxides in 40 C.F.R. § 60.44
cannot readily be applied to the “waste heat” boilers of
Power Plant C, as they make no provision for the use
of the exhausts from the gas turbine generators as a
source of heat in the boilers.' The exhausts from the gas

‘Exhausts from gas turbine generators are at present unregu-
lated by new source standards. Even if such standards for gas
turbines should be promulgated, the gas turbine generators of
Power Plant C would clearly not be “new sources” for purposes

78

turbine generators are not subject to emissions standards
upon their discharge from the turbines themselves. In
such circumstances equitable considerations suggest that
passage of the turbine exhausts through the» “waste
heat” boilers should no less receive similar treatment,
i.e., be deemed to fall outside the new source standards
of performance.

Conceptually, one might consider carving up the nitro-
gen oxides emitted from the “waste heat” boilers into
two segments, one attributable to the “waste heat” com-
ponent and the other to the oil-fired component. The
nitrogen oxides attributable to the oil-fired component
would, however, be difficult to regulate separably under
the present standards because process and analytical
limitations would prevent obtaining a precise and mean-
ingful allocation between the two components of the
nitrogen oxides emissions.?

B. The Standards For Sulfur Dioxide Require Con-
siderable Adaptation To Test Compliance
Against “Total Heat Input”, As The Regula-
tions Require

The standards for sulfur dioxide of 40 C.F.R. $ 60.43
indicate that the sulfur dioxide discharged into the at-
mosphere shall be measured against the heat derived from
various fossil fuels. If these standards are nonetheless
applied to the “waste heat” boilers, some very consider-
able accommodations by way of interpretation must be
made.

Section 60.43(c) provides specifically that “[c] ompli-
ance shall be based on the total heat input from all fossil
fuels burned, including gaseous fuels.” The “waste heat”
entering the boilers should be included in this “total heat
input”, even though the actual “waste heat” input to the

of such regulations. PPG could thus, if it chose, allow the exhausts
from the gas turbine generators to pass freely into the atmosphere.
It obviously prefers not to adopt such a wasteful course of action.

2 The same circumstances would prevent a meaningful and pre-
cise allocation of the particulate emissions.

79

boiler is in the form of hot gases. These gases were the
product of a prior combustion.

This construction of the standards is supported by
prior Agency decisions. As noted previously, recent
amendments to the standards of performance for fossil-
fuel fired steam generators enlarged their scope to in-
clude facilities burning wood residues in combination
with fossil-fuels. The preamble to this recent amend-
ment makes clear that fuel mixtures can play a critical
role in achieving compliance with the standards:

Complying with the standard by firing low sulfur
fossil fuel requires an adequate supply of fuel with
a sulfur content low enough to meet the standard.
However, it would be possible for the owner or opera-
tor to fire, for example, a relatively high sulfur
fossil fuel with a very low sulfur fossil fuel (e.9.,
natural gas) to obtain a fuel mixture which would
meet the standard. The low sulfur fuel adds to the
heat input but not to the sulfur dioxide emissions
_and, thereby, has an overall fuel sulfur reduction

effect.
41 Fed. Reg. 51397.( November 22, 1976)

CONCLUSION

Power Plant C at the Lake Charles works has been
designed as an energy-efficient and economical supplier
of both electricity and steam to an industrial process
which needs both items. If deemed to apply, however, the
new source standards for fossil-fuel fired steam genera-
tors threaten to prevent use of the critical “waste heat”
component of the feed to the boiler segment of the power
plant. The complementary turbine-boiler aspects of the
power plant should be considered in the Agency’s consid-
eration of the request for determinations under 40 C.F.R.
§ 6.05.

Specifically, PPG asks

(1) that the Agency determine that PPG had em-
barked upon a continuous course of construction

80

at Power Plant U prior to August 17, 1971, such
that the new source standards for fossil-fuel
fired steam generators do not apply; or alterna-
tively,

(2) that the Agency determine that the regulations
for fossil-fuel fired steam generators do not ap-
ply to “waste heat” boilers such as those being
installed at Power Plant C.

In the event that the Agency determines that the “waste
heat” boilers at Power Plant C are subject to new source
standards for fossil-fuel fired steam generators, the
Agency should (1) conclude that the standards for nitro-
gen oxides cannot meaningfully be applied to the emis-
sions discharged by the “waste heat” boilers, and (2)
measure compliance with the standards for sulfur dioxide
against the total heat input to the boiler, as required,
while construing total heat input ‘: include the “waste
heat” charged to the boiler.

Respectfully submitted,

/s/ George P. Cheney, Jr.
GEORGE P. CHENEY, JR.
PPG Industries, Inc.
One Gateway Center
Pittsburgh, Pennsylvania 15222
(412) 434-2145

/s/ Charles F. Lettow
CHARLES F. LETTOW
Joseph Isenbergh
Cleary, Gottlieb, Steen &
Hamilton
1250 Connecticut Avenue, N.W.
Washington, D.C. 20036
April 12, 1977 (202) 223-2151
[Italicized material appears as handwritten
material in record]

-— —~

81
ENVIRONMENTAL PROTECTION AGENCY

Apr. 14, 1977
NSPS Compliance Testing
Original Signed by O. W. Lively, Jr. for

Howard G. Bergman
Director
Enforcement Division (6AE)

Ed Reich
Director, Stationary Sources
Enforcement Division (EN-341)

PPG Industries, Inc. at its Lake Charles, Louisiana, plant
is constructing two fossil fuel fired steam generators
which are part of a combined-cycle power plant. Natural
gas is burned in two gas turbines. The gases from the
two turbines are fed into the two steam generators. In
addition fuel oil is burned in the steam generators. The
heat input from each turbine is about 679 million Btu.
The fuel oil heat input to each steam generator is about
608 million Btu. The steam from the generators will be
used to drive one turbo-generator which furnishes steam
for the chemical complex.

PPG has requested that the compliance testing be done
while the steam generators are operating on fuel oil and
the turbine gases. PPG is planning to use fuel oil with a
sulfur content of 1% by weight. PPG estimates that if
required to conduct performance tests while burning
100% fuel oil the steam generators will exceed the sulfur
dioxide standard.

It is our understanding of prior determinations that the
proper performance testing in this case would be a single
test while burning 100% fuel oil. However, the change
to allow the use of wood residue in compliance testing
implies a change in approach; therefore, we request clari-
fication of the policy.

[Handwritten notations and routing and concurrence
notations omitted in printing]

82
(1) Gael Bergman
CLEARY, GOTTLIEB, STEEN & HAMILTON

1250 Connecticut Avenue, N.W.
Washington, D.C. 20036

(202) 228-2151

Cable: Cleargolaw Washi

KENNETH L. BACHMAN, JR.

CHARLES F. LETTOW

RICHARD deC. HINDS
RESIDENT PARTNERS

MATTHEW HALE
WASHINGTON COUNSEL

SARA D. SCHOTLAND
ERIC SCHWARTZ
JOHN S. MAGNEY

Twx 7108220108

GEORGE W. BALL
COUNSEL

NEW YORK OFFICE
ONE STATE STREET PLAZA
NEW YORK 10004

PARIS OFFICE
41, AVENUE de FRIEDLAND
75008 PARIS, FRANCE

BRUSSELS OFFICE
RUE de la LOI, 23
1040 BRUSSELS, BELGIUM

LONDON OFFICE
WINCHESTER HOUSE
77 LONDON WALL
LONDON EC2N IDA, ENGLAND

THOMAS C. HILL
JOSEPH ISENBERGH

April 29, 1977

Received EPA Region VI
1977 May—2 AM 10:11
Enforcement Division

Received May 2, 1977—9 A.M.
EPA Region VI—Legal

Mr. Howard Bergman

Director, Enforcement Division
Environmental Protection Agency
Region VI

1600 Patterson Street

Dallas, Texas 75201

aT

83

Mr. Edward E. Reich

Director, Division of Stationary
Source Enforcement

Environmental Protection Agency

401 M Street, S.W.

Washington, D.C. 20460

Dear Messrs. Bergman and Reich:

On April 14, 1977, Mr. George P. Cheney, Jr., Assistant
Counsel, PPG Industries, Inc., filed a request for determi-
nations under 40 C.F.R. § 60.5 (the request is dated
April 18, 1977). This request pertains to “waste heat”
boilers at PPG’s Lake Charles works.

On April 20, 1977, in an address to a Joint Session
of Congress, President Carter spoke of measures “to en-
courage industries and utilities to expand what is called
“cogeneration’ projects, which capture the steam which is
now wasted from the electrical power production.” (White
House Press Release, at 5.) The “ ‘cogeneration’ projects”
of which President Carter spoke and what the PPG re-
quest denominates as “waste heat” boilers are the same
thing. A copy of President Carter’s address is attached.

Very truly yours,

/s/ Charles F. Lettow
CHARLES F, LETTOW
CFL/ce
Attachment
ee: George P. Cheney, Jr., Esq.
(w/attachment)

[Italicized material appears as handwritten
material in record]

84

For Immediate Release April 20, 1977
OFFICE OF THE WHITE HOUSE
PRESS SECRETARY

THE WHITE HOUSE

REMARKS OF THE PRESIDENT TO A
JOINT SESSION OF CONGRESS

THE CAPITOL

9:05 P.M. EST

Mr. President, Mr. Speaker, Members of the Congress,
and distinguished guests:

The last time we met as a group was exactly three
months ago today on Inauguration Day. We have had
a good beginning as partners in addressing our Nation’s
problems.

But in the months ahead, we must work together even
more closely, to deal with the greatest domestic challenge
that our Nation will face in our lifetime. We must act
now—together—to devise and to implement a compre-
hensive national energy plan to cope with a crisis that
otherwise could overwhelm us.

This cannot be an inspirational speech tonight. I don’t
expect much applause. It is a sober and a different pres-
entation. During the last three months, I have come to
realize very clearly why a comprehensive energy policy
has not already been evolved. It has been a thankless job,
but it is our job, and I believe that we have a fair,
well-balanced and effective plan to present to you. It can
lead to an even better life for the people of America.

The heart of our energy policy is—the heart of our
energy problem is that we have too much demand for
fuel that keeps going up too quickly, while production
goes down, and our primary means of solving this prob-
lem is to reduce waste and inefficiency.

Oil and natural gas make up about 75 percent of our
consumption in this country, but they only compromise

85

about 7 percent of our reserves. Our demand for oil has
been rising by more than 5 percent each year, but do-
mestic oil supplies have been dropping more than 6
percent.

Therefore, our imports have risen sharply—making us
more and more vulnerable if supplies are interrupted—
but early in the 1980’s even foreign oil will become in-
creasingly scarce. If it were possible for world demand
to continue rising during the next few years at the rate
of 5 percent a year, we could use up all the proven
reserves in the entire world by the end of the next decade.

Our trade deficits are growing. We imported more
than $35 billion worth of oil last year, and we will spend
much more than that this year. The time has come to
draw the line.

We could continue to ignore this problem—as many
have done in the past—but to do so would subject our
people to an impending catastrophy. That is why we
need a comprehensive national energy policy. Your ad-
vice has been an important influence as this plan has
taken shape. Many of its proposals will be built on the
legislative initiatives that you have taken in the Con-
gress in the last few years.

Two nights ago, I spoke to the American people about
the principles behind our plan and our specific goals
for 1985:

To reduce the annual growth rate in energy consump-
tion by more than 2 percent;

To reduce gasoline consumption by 10 percent;

To cut imports of foreign oil to less than 6 million
barrels a day, less than half the amount that we will
be importing if we do not conserve;

To establish a strategic petroleum reserve supply of
at least a billion barrels, which will meet our needs for
about 10 months;

To increase our coai production by more than two-
thirds, over 1 billion tons a year;

To insulate 90 percent of American homes and all
new buildings; and

To use solar energy in more than 214 million American
homes.

86

Now, I hope that the Congress will adopt these goals
by joint resolution as a demonstration of our mutual
commitment to achieve them.

Tonight I want to outline the specific steps by which
we can reach those goals. The proposals fall into these
central categories: First, conservation; second, produc-
tion; third, conversion; fourth, development; and, of
course, fairness or equity, which is a primary considera-
tion of all of our proposals.

We prefer to reach those goals through voluntary co-
operation with a minimum of coercion. In many cases,
we propose financial incentives, which will encourage
people to save energy and will harness the power of our
free economy to meet our needs.

But I must say to you that voluntary compliance will
not be enough—the problem is too large and the time is
too short. In a few cases, penalties and restrictions to
reduce waste are essential.

Our first goal is conservation. It is the cheapest, most
practical way to meet our energy needs and to reduce
our growing dependence on foreign supplies of oil. With
proper planning, economic growth, enhanced job oppor-
tunities and a higher quality of life can result even while
we eliminate the waste of energy.

The two areas where we waste most of our energy are
transportation and our heating and cooling systems.
Transportation consumes 26 percent of all our energy—
and as much as half of that is waste. In Europe the
average automobile weighs 2,700 pounds; in our country,
4,100 pounds.

Now, the Congress has already taken fuel efficiency
steps and set standards which will require new auto-
mobiles to have an average efficiency of miles per gallon
of 27.5 by 1985 instead of the 18 among new cars today.
The entire fleet of cars is only 14 miles per gallon at
this time.

To insure that this existing congressional mandate is
met, I am proposing first of all a graduated excise tax
on new gas guzzlers that do not meet Federal mileage
standards. This tax will start low and then rise each
year until 1985. In 1978, for instance, a tax of $180

~~

87

will be levied on a car getting only 15 miles per gallon,
and for an 11-mile-per-gallon car the tax will be $450.
That is at the beginning. By 1985 the taxes on these
wasteful new cars with the same lew mileage, 15 miles
per gallon or 11 miles per gallon, will have risen to
$1,600 and $2,500.

All of the money collected by this tax on wasteful
automobiles will be returned to consumers through re-
bates on automobiles that are more efficient than the
mileage standards. We expect both better efficiency and
also more automobile production and sales under this
proposal. We will insure that American automobile work-
ers and their families do not bear an unfair share of
the burden.

And of course we will also work with our foreign
trading partners to see that they are treated fairly.

Now I want to discuss one of the most controversial
and most misunderstood parts of the energy proposal—
a standby tax on automobile gasoline. Gasoline consump-
tion represents half of our total oil usage. We simply
must save gasoline, and I believe that the American
people can meet this challenge. It is a matter of patri-
otism and a matter of commitment.

Between now and 1980 we expect gasoline consump-
tion to rise slightly above the present level. For the fol-
lowing five years, when we have the more efficient cars
on the road, we need to reduce consumption each year
to reach our targets for 1985.

I propose that we commit ourselves to these fair,
reasonable and necessary goals and at the same time
write into law a gasoline tax of an additional five cents
per gallon that will automatically take effect each year
that we fail to meet our annual targets in the previous
year. As an added incentive, if we miss one year, but
are back on the track the next year, then the additional
tax should come off. Now, if the American people re-
spond to this challenge, we can meet these targets, and
under these circumstances this gasoline tax will never
have to be imposed. I know and you know that it can be

done.

88

As with other taxes, we must minimize the adverse
effects on our economy—we must reward those who con-
serve, and penalize those who waste. Therefore, any pro-
ceeds from the tax—if it is triggered by excessive con-
sumption—should be returned to the general public in
an equitable manner.

I will also propose a variety of other measures to make
our transportation system more efficient.

One of the side effects of conserving gasoline, for in-
Stance, is that state governments who have a limited
amount of tax per gallon collect less money through
gasoline taxes. To reduce their hardships and to insure
adequate highway maintenance, we should compensate
states for this loss through the Highway Trust Fund.

The second major area where we can reduce waste is
in our homes and buildings. Some buildings waste half
the energy used for heating and cooling. From now on
we must make sure that new buildings are as efficient as
possible, and that old buildings are equipped—or “retro-
fitted” —with insulation and heating systems that dramat-
ically reduce the use of fuel.

The Federal Government should set an example. I will
issue an Executive Order establishing strict conservation
goals for both new and old Federal b

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385006_0386%3A2. Public record. Not legal advice.
