REVISED AIR PERMIT APPROVED FOR DUKE POWER PLANT

RALEIGH - Duke Energy Carolinas today received an air quality permit needed for it to construct and operate a new coal-fired boiler at its Cliffside power plant in Rutherford County, with conditions that will reduce emissions of key pollutants from the facility despite a large increase in electric power production.

The N.C. Division of Air Quality (DAQ) issued the permit to Duke Energy for a new 800-megawatt boiler at its Cliffside Steam Station near Forest City. The permit requires use of best available air pollution controls on the new unit and the shut down of four older units at the Cliffside facility. The permit will result in significant reductions in total emissions of sulfur dioxide (SO2), nitrogen oxides (NOx) and mercury in spite of the increased power production. The permit also requires Duke to mitigate the plant's carbon dioxide (CO2) emissions even though neither state nor federal regulations currently require industries to control their emissions of greenhouse gases that contribute to climate change.

"Cliffside will be producing substantially more power while cutting back its emissions of key pollutants," DAQ Director Keith Overcash said. "These emissions reductions are significant given that Duke Energy will increase its electric power production at Cliffside by about 80 percent with the addition of the new unit."

SO2 contributes to haze, acid rain and particle pollution. Mercury emissions can settle in water bodies, where it can accumulate to harmful levels in certain fish. NOx is the main cause of ozone pollution in North Carolina and also contributes to haze and acid rain. CO2 is considered the main cause of global warming or climate change.

Under the terms of the permit, Duke must shut down four existing Cliffside boilers (Units 1-4) that lack modern controls before operating the new unit. In addition, the utility is installing wet scrubbers on the new Unit 6 and the existing Unit 5. The shut down of Units 1-4 and the use of wet scrubbers and other controls on Units 5 and 6 will reduce total SO2 emissions from the Cliffside facility by about 26,000 tons per year (an 80-percent reduction from current levels), mercury emissions by 79 pounds per year (or 50 percent), and NOx emissions by 3,500 tons per year (or about 50 percent).

Mitigation of the CO2 emissions from the new unit will be achieved in two ways. By 2018, Duke will shut down an additional 800 megawatts of older coal-fired units in North Carolina. The closure of those units, combined with retirement of Cliffside Units 1-4, will offset about two-thirds of the CO2 emissions expected from the new Cliffside unit. Duke Energy will identify additional CO2 offsets that would make the project carbon neutral by 2018.

"The CO2 offsets are groundbreaking," Overcash said. "This permit puts Duke on a path toward a carbon neutral power generation system with both short-term and long-term benefits to the state and to all of its citizens."

In considering the permit application for the facility, DAQ held a public hearing in Forest City in September and accepted written comments for about three months. During that comment period, 82 people spoke at the public hearing and 1,865 individuals or groups submitted written comments.

Under the permit, Duke must comply with stringent limits for controlling particulate matter, sulfur dioxide, carbon monoxide, nitrogen oxides, visible emissions, volatile organic compounds, lead, mercury and sulfuric acid. The plant would use state-of-the-art air pollution control devices, including a wet scrubber, bag filter, spray dry absorbers and a selective catalytic reduction system.

Other permit conditions require the facility operators to:

• Monitor air pollution control equipment.
• Conduct periodic stack testing of emissions from the boiler annually.
• Operate continuous emission monitors for nitrogen oxides, sulfur dioxide, mercury and visible emissions.

Duke previously had applied for an air quality permit to build two new boilers at Cliffside, but amended its application after the N.C. Utilities Commission approved only one additional unit at the plant.

By law, the DAQ must review permit applications for compliance with air quality regulations. The division has no authority over zoning, land use or where a company decides to locate a facility. Local governments are responsible for regulating land use. More information about other air quality issues can be found at the DAQ Web site, www.ncair.org

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