See also: Questions and answers about the flex permit.

AUSTIN — LCRA and Austin Energy have received approval from the Texas Commission on Environmental Quality (TCEQ) for a unique air quality permit that ultimately will make the Fayette Power Project one of the cleanest burning coal-fired power plants in the nation.

The "flex permit" commits the co-owners of Fayette Power Project units 1 and 2 to spend more than $130 million during the 10-year permit period to cut emissions of sulfur dioxide (SO2), nitrogen oxide (NOx) and other pollutants. Scrubbers will reduce sulfur dioxide (SO2) emissions from the two units by about 90 percent. Ongoing improvements will lower NOx emissions plantwide by 50 percent.

Permit approval enables LCRA to begin improvements to increase efficiency and reliability of the plant, which is more than 20 years old and provides power for the residents of Austin and LCRA's 42 wholesale electric customers, including Central Texas cities and electric cooperatives.

"We are extremely pleased that TCEQ recognized the value of this permit, which will help us to continue providing reliable electricity in a cleaner manner than ever before," said LCRA General Manager Joe Beal.

LCRA staff worked with TCEQ staff for several months to identify target emissions for the permit. The approved emissions caps are consistent with best available control technology for this type of equipment. FPP has three units in all. Unit 3 already has SO2 controls in place, making it an extremely clean-burning unit.

Austin owns half of FPP units 1 and 2, and the Austin City Council approved the city's share of the cost on unanimous vote. The plant is located near La Grange.

"We have made air quality a key priority in our generation planning and procurement," said Austin Mayor Gus Garcia. "These improvements go hand in hand with that philosophy."

LCRA submitted the application for the permit in July 2002 and received notification of approval on Oct. 10. State and national environmental officials have lauded the efforts of the plant owners not only to voluntarily control emissions, but also to set an example for other utilities.

The scrubbers that will be installed at FPP clean sulfur from emissions by passing them through a limestone slurry mix. The slurry becomes gypsum, which has many useful applications, including wallboard and ready-mix concrete. The scrubbing process also will help remove mercury, reducing those emissions by as much as 30 percent from each unit.