OG&E 2009 Annual Report Download - page 56

continues to evaluate its environmental management systems to ensure compliance with existing and proposed environmental
legislation and regulations and to better position itself in a competitive market.
Air
Federal Clean Air Act
The Company’s operations are subject to the Federal Clean Air Act, as amended, and comparable state laws and regulations.
These laws and regulations regulate emissions of air pollutants from various industrial sources, including electric generating units, and
also impose various monitoring and reporting requirements. Such laws and regulations may require that the Company obtain pre-
approval for the construction or modification of certain projects or facilities expected to produce air emissions or result in the increase
of existing air emissions, obtain and strictly comply with air permits containing various emissions and operational limitations, install
emission control equipment or subject the Company to monetary penalties, injunctions, conditions or restrictions on operations, and
potentially criminal enforcement actions. The Company likely will be required to incur certain capital expenditures in the future for air
pollution control equipment and technology in connection with obtaining and maintaining operating permits and approvals for air
emissions.
Mercury and Hazardous Air Pollutants
On March 15, 2005, the U.S. Environmental Protection Agency (“EPA”) issued the Clean Air Mercury Rule (“CAMR”) to
limit mercury emissions from coal-fired boilers. On February 8, 2008, the U.S. Court of Appeals for the D.C. Circuit Court vacated
the rule. In January 2010, the EPA issued an information collection request which will survey power plant operators about their
emissions of mercury and other hazardous air pollutants (“HAP”). The EPA has announced plans to promulgate new HAP emission
limitations for coal-fired and oil-fired power plants by November 2011. Any costs associated with future regulation of mercury or
other HAPs are uncertain at this time. Because of the uncertainty caused by the litigation regarding the CAMR, the promulgation of
an Oklahoma rule that would have applied to existing facilities has also been delayed. The Company will continue to participate in
the state rule making process.
RICE MACT Amendments
On March 5, 2009, the EPA initiated rulemaking concerning new national emission standards for hazardous air pollutants for
existing reciprocating internal combustion engines by proposing amendments to the National Emission Standards for Hazardous Air
Pollutants for Reciprocating Internal Combustion Engine Maximum Achievable Control Technology (“RICE MACT Amendments”).
Depending on the final regulations that may be enacted by the EPA for the RICE MACT Amendments, Company facilities will likely
be impacted. The costs that may be incurred to comply with these regulations, including the testing and modification of the affected
engines, are uncertain at this time. The current proposed compliance deadline is three years from the effective date of the final rules.
Regional Haze
On June 15, 2005, the EPA issued final amendments to its 1999 regional haze rule. These regulations are intended to protect
visibility in national parks and wilderness areas (“Class I areas”) throughout the United States. In Oklahoma, the Wichita Mountains
are the only area covered under the regulation. However, Oklahoma’s impact on parks in other states must also be evaluated. Sulfates
and nitrate aerosols (both emitted from coal-fired boilers) can lead to the degradation of visibility. The state of Oklahoma joined with
eight other central states to address these visibility impacts.
The Company was required to evaluate the installation of BART to address regional haze at sources built between 1962 and
1977. The Oklahoma Department of Environmental Quality (“ODEQ”) made a preliminary determination to accept an application for
a waiver from BART requirements for the Horseshoe Lake generating station based on modeling showing no significant impact on
visibility in nearby Class I areas. The Horseshoe Lake waiver is expected to be included in the ODEQ state implementation plan
(“SIP”) for regional haze.
Waivers were not available for the BART-eligible units at the Seminole, Muskogee and Sooner generating stations. The
Company submitted a BART compliance plan for Seminole on March 30, 2007 committing to installation of NOX controls on all
three units. On May 30, 2008, the Company filed BART evaluations for the affected generating units at the Muskogee and Sooner
generating stations. In this filing, the Company indicated its intention to install low NOX combustion technology at its affected
generating stations and to continue to burn low sulfur coal at the four coal-fired generating units at its Muskogee and Sooner
generating stations. The Company did not propose the installation of scrubbers
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