EPA INITIATED THE UTILITY INITIATIVE TO FOCUS ON NONCOMPLIANCE AT COAL-FIRED ELECTRICAL GENERATING PLANTS WITH EPA'S NEW SOURCE REVIEW (NSR) PROGRAM WHICH INCORPORATES BOTH THE PREVENTION OF SIGNIFICANT DETERIORATION (PSD) PROGRAM AND THE NON-ATTAINMENT NEW SOURCE REVIEW PROGRAM. THIS CASE INVOLVES ONLY PSD VIOLATIONS. IN REVIEWING RESPONSES TO NUMEROUS SECTION 114 REQUESTS, EPA HAS FOUND EVIDENCE RELATING TO THREE CAPITAL PROJECTS GREATER THAN $500,000 ON UNIT 1 AND 13 CAPITAL PROJECTS GREATER THAN $500,000 ON UNIT 2. THESE CAPITAL PROJECTS ARE MAJOR MODIFICATIONS FOR WHICH MINNKOTA SHOULD HAVE OBTAINED A PSD PERMIT PRIOR TO CONSTRUCTION. MINNKOTA FAILED TO OTAIN THE REQUISITE PSD PERMITS OR TO COMPLY WITH OTHER REQUIREMENTS OF PSD. REGION 8 WILL WORK WITH HEADQUARTERS AND DOJ TO CALCULATE AN APPROPRIATE BOTTOM LINE SETTLEMENT PENALTY AFTER SUBMISSION OF THIS REFERRAL.