Washington (Platts)--26Jul2007

Taking their case to Travis County, Texas, District Court, a coalition of
cities campaigning for clean air in the Lone Star State has sued the Texas
Commission on Environmental Quality over the permits for TXU's two-unit,
lignite-fired Oak Grove project in Robertson County.

"The proposed plan for construction of the Oak Grove Power Plant places
Central Texas' present air quality levels at risk of violating federally
mandated clean air standards, [creating] unhealthy air for Central Texans and
a designation of non-attainment status," the Texas Clean Air Cities Coalition
said in the July 20 complaint. The action seeks to force the TCEQ to remand
the permitting to administrative law judges for further consideration.

The order approving the Oak Grove project "violated Texas Health & Safety Code
?, which requires that the proposed facility use the best available control
technology ?, that the TCEQ find 'no indication that the emissions from the
facility will contravene the ? protection of the public's health and physical
property' [and] that the proposed facility not contribute to a condition of
air pollution."

The coalition's membership includes, among others, the cities of Dallas,
Houston, Fort Worth, Waco, Arlington, Plano and Irving, as well as El Paso,
Travis and McLennan counties. Several groups specifically devoted to regional
clean air issues also are members of the coalition ? the Central Texas Clean
Air Coalition and the Clean Air Force of Central Texas.

In addition, the Central Texas Clean Air Coalition in Austin filed its own
suit regarding the Oak Grove permit, former Dallas Mayor Laura Miller told
Platts on Wednesday.

Coalition wants IGCC considered 

Along with statements decrying the damaging effects of emissions that include
carbon dioxide, the complaint argues the case for cleaner-burning integrated
gasification combined-cycle technology. TXU has said that it would consider
IGCC in its scaled-down program for building new coal generation in the state,
and had begun the planning process for two IGCC demonstration plants in Texas,
though not specifically for the Oak Grove project (PCT 3/13).

"We are confident that the TCEQ made the correct decision by issuing the air
permit," TXU spokeswoman Lisa Singleton told Platts. "This motion for
rehearing isn't unexpected, but we believe that because we followed the very
clear laws and rules required to obtain an air permit, this motion for
rehearing is without merit.

-- Steve Hooks, steve_hooks@platts.com

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