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Sierra Pacific Industries- Anderson

(SAC 12-01) September 2012

Summary of the Proposed Permit

On September 12, 2012, the United States Environmental Protection Agency (EPA) Region IX provided 

notice of, and requested public comment on, action relating to the proposed major modification of the 

Prevention of Significant Deterioration (PSD) permit for the Sierra Pacific Industries- Anderson Division 

facility (SPIA). The proposed permit modification would grant conditional approval, in accordance with 

PSD regulations (40 Code of Federal Regulations (CFR) 52.21), to Sierra Pacific Industries (SPI) to 

construct and operate a new 31megawatt (MW) cogeneration unit at its existing Anderson facility. The 

mailing address for SPI-Anderson is P.O. Box 496028 Redding, CA 96049-6028. The proposed location 

for the modification is 19758 Riverside Ave., Anderson CA 96007. The city of Anderson is located within 

the Shasta County Air Quality Management District (SCAQMD). On March 3, 2003 EPA revoked and 

rescinded SCAQMD’s authority to issue and modify federal PSD permits for new and modified major 

sources of attainment pollutants. Therefore, EPA is revising the PSD permit issued by SCAQMD to 

incorporate the proposed modification. All existing equipment at the SPI-Anderson facility is still subject 

to comply with all existing permits issued by SCAQMD. The public comment period for this proposed 

permit modification, which is ongoing, will close on October 17, 2012.

SPI has applied for approval to construct and operate an additional new cogeneration unit capable of 

generating 31 MW of gross electrical output from the combustion of clean cellulosic biomass. SPIAnderson is a sawmill and planer mill facility that currently contains a wood-fired boiler cogeneration unit 

with associated air pollution control equipment and conveyance systems that produces steam to dry 

lumber in existing kilns for its lumber operations. The proposed cogeneration unit will be constructed at 

the existing SPI-Anderson facility. The fuels to be burned in this new cogeneration unit shall conform to 

the definition of clean cellulosic biomass as defined in 40 CFR 241.2. In particular, clean cellulosic biomass means 

those residuals that are akin to traditional cellulosic biomass such as forest-derived biomass (e.g., green 

wood, forest thinnings, clean and unadulterated bark, sawdust, trim, and tree harvesting residuals from 

logging and sawmill materials), corn stover and other biomass crops used specifically for energy

production (e.g., energy cane, other fast growing grasses), bagasse and other crop residues (e.g., peanut 

shells), wood collected from forest fire clearance activities, trees and clean wood found in disaster debris, 

clean biomass from land clearing operations, and clean construction and demolition wood. Clean biomass 

is biomass that does not contain contaminants at concentrations not normally associated with virgin 

biomass materials.

This document is intended to provide a brief, informal summary of information to assist members of the 

public of EPA’s proposed PSD permit modification. For official permit documents developed in 

accordance with 40 CFR Part 124 and more details about the permit requirements, refer to EPA’s public 

notice, the proposed permit, and the Ambient Air Quality Impact Report (AAQIR) for this proposed 

permit action, which are linked to the EPA Region 9 permit website: 

http://www.epa.gov/region09/air/permit/r9-permits-issued.html#pubcomment. 

What Laws and Regulations Apply to EPA’s Proposed PSD Permit?

We have prepared this proposed permit based on our PSD regulations issued under the Clean Air Act at 

40 CFR 52.21. We believe that the proposed modification will comply with PSD requirements for the 

pollutants regulated under the permit. We have made this determination based on the information 

PUBLIC INFORMATION SHEET

~ OVERVIEW ~

SPI- ANDERSON

PROPOSED CLEAN AIR ACT 

PSD PERMIT MODIFICATION
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Sierra Pacific Industries- Anderson

(SAC 12-01) September 2012

supplied by the applicant, our review of the analyses contained in the permit application, and other 

relevant information contained in the administrative record for this proposed action. EPA has provided 

the proposed permit and AAQIR to the public for review, and will make a final decision on the PSD 

permit application after considering all public comments on our proposal submitted during the public 

comment period.

Environmental requirements from other federal, state, or local laws are not included in this proposed 

permit unless they are also part of the Clean Air Act PSD program. The modification is required to 

comply with all other environmental requirements. To this end, Sierra Pacific Industries has submitted 

applications for local construction approval to the SCAQMD.

What Does EPA’s Proposed PSD Permit Regulate?

The PSD program applies to “major” new sources of attainment pollutants. SPIA is an existing PSD major 

stationary source of PSD pollutants. The new cogeneration unit will be a major source for oxides of 

nitrogen (NOx), carbon monoxide (CO) and greenhouse gases (GHG). Once a source is considered major 

for a PSD pollutant, PSD applies to any other pollutant regulated under the PSD program that is emitted 

in a significant amount. This modification will result in a significant increase of total particulate matter 

(PM), particulate matter under 10 micrometers(μm) in diameter (PM10), particulate matter under 2.5 μm in 

diameter (PM2.5) emissions. 

In accordance with 40 CFR 52.21(j), a new major stationary source is required to apply best available 

control technology (BACT) for each PSD pollutant that it has the potential to emit (PTE) in significant 

amounts. With respect to this modification, NOx, CO, PM, PM10, PM2.5, and GHG are emitted in 

significant amounts, and therefore the proposed permit requires that SPIA apply BACT to all equipment 

that emits these pollutants, except GHG. Although the proposed modification identifies significant 

increases in GHG emissions; EPA’s Deferral for CO2emissions from Bioenergy and Other Biogenic Sources under the 

Prevention of Significant Deterioration and Title V Programs (76 FR 43490 July 20, 2011) applies to this project. 

Therefore, the modification will not be subject to BACT requirements for GHG. 

What Other Actions is EPA Taking in Connection with Its Decision making Process? 

EPA has been engaged in consultation with the United States Fish and Wildlife Service (USFWS) under 

section 7 of the federal Endangered Species Act to ensure that its proposed PSD permit decision for the 

modification is not likely to jeopardize the continued existence of any federally-listed endangered or 

threatened species or result in the destruction or adverse modification of critical habitat for such species.

EPA concludes that the project will have no likely adverse effect on any endangered or threatened species 

or designated critical habitat. Discussions with the USFWS support EPA’s conclusion.