### PART 71 FEDERAL OPERATING PERMIT

STATEMENT OF BASIS

Salt River Project Agricultural Improvement and Power District

Tri

- Cities Landfill Energy Facility

Permit No. SR

- R OP 1 5

- 01

I

. Facility Information

A. Permittee

Salt River Project Agricultural Imp rovement and Power District P.O. Box 52025, PAB 352 Phoenix, AZ 85072

- 2025

B. Facility location

11630 Beeline Highway Scottsdale, AZ

On the reservation of Salt River Pima

- Maricopa Indian Community

C. Contact information

Facility Contact: Barbara S prungl , (602) 236

- 5374

Responsible Official: Larry Bottolfson , (602) 236

- 6230

D. Description of operations, products

This facility produces electricity by firing IC engines with landfill gas collected at

the Tri

- Cities Landfill and the Salt River Landfil l.

E. Permitting and construction history

This action is a renewal of a Part 71 Operating Permit for Tri

- Cities Landfill Energy Facility ( “ TCLEF ” )

. EPA issued initial Part 71 Operating

Permit , #SR

- OP 00

- 02, for Tri

- Cities Landfill Energy Facility (“TCLEF” ) on September 21, 2000. The p ermittee applied for a renewal to the initial permit, which EPA approved , that became effective on December 30, 2006 , #SR

- R OP

05

- 03 . This action is for the second renewal of the TCLEF operating permit.

Since the last renewa l

, the following two administrative permit amendments were made to the p ermittee ’s permit and are incorporated in this renewal :2 1. Carbon monoxide m onitoring , performance test notification, and compliance :

o n March 8, 2007, EPA corrected the concentration limits in conditions II.C.3,

II.C.4 and II.C.6 at which the permittee must take action. The initial permit listed

a CO concentration of 145 ppmv @15% O2 for both the engines and the thermal

oxidizer. The permittee demonstrated that the calculation was i ncorrect and the

limits were corrected to 265 ppmv @15% O2 for the three engines and 5 ppmv

@15% O2 for the thermal oxidizer.

2. Fee payment address: on May 18, 2009, EPA update d the fee payment address, listed in condition IV.A.4. EPA changed the fee pa yment address and alerted the permittee to the update.

The p ermittee has never been required to apply for an EPA

- issued New Source

Review ( “ NSR ”) permit

. The facility is currently in compliance, has not received any notices of violations and doe s not have any pending enforcement issues.

F. Emission

- generating units and activities

As per P ermittee’s request, assigned emission unit identification numbers have been revised. The two IC engines venting to the thermal oxidizer, TO1, will now

be ident ified as ENG4 and ENG5. The three engines venting to the atmosphere are ENG1, ENG2 and ENG3.

Table 1

– TCLEF Emission Units

Emission

Unit I.D.

No. Unit Description Associated Control Equipment

ENG1 Caterpillar G3516 LE internal combustion

engine (800 k W, 9.01 MMBtu/hr) none

ENG2 Caterpillar G3516 LE internal combustion

engine (800 kW, 9.01 MMBtu/hr) none

ENG3 Caterpillar G3516 LE internal combustion

engine (800 kW, 9.01 MMBtu/hr) none

ENG4 Caterpillar G3516 LE internal combustion

engine (800 kW, 9.01 MMBtu/hr) unit TO1:

John Zinc ZTOF

10x40 thermal

oxidizer ENG5 Caterpillar G3516 LE internal combustion

engine (800 kW, 9.01 MMBtu/hr)3

G. Potential to emit (in tons/year)

Potential to emit ( “ PTE ” ) means the maximum capacity to em it any air pollutant ( Clean Air Act criteria pollutants or hazardous air pollutants ) under its physical and operational design. Any physical or operational limitation on the maximum capacity of TCL EF to emit an air pollutant, including air pollution contr ol equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, may be treated as part of its design if the limitation is enforceable by EPA. PTE is meant to be a worst case emissions

calculation a nd is used in many cases to determine the applicability of federal requirements. Actual emissions are typically lower than PTE.

The Federal Clean Air Act (“CAA” or “Act”), 42 U.S.C. 7401

- 7671q, regulates emissions from major stationary sources of ai r pollution. Pursuant to Part C of the CAA, t he prevention of significant deterioration ( “ PSD ” ) requirements promulgated at 40 C.F.R. 52.21 apply to major stationary sources emitting CAA pollutants for which the area is in attainment with the national a mbient air quality standards ( “ NAAQS ” ). For power generation facilities like TCLEF, the major

source PSD threshold of any pollutant is 250 tons per year ( “ tpy ” ). Pursuant to Part D of the CAA, t he major source thresholds are lower for sources in

nonattai nment new source review ( “ NNSR ” ) area s where one or more of the certain criteria pollutants are not in attainment with the NAAQS. The area where the facility is located is in serious nona ttainment for particulate matter (“PM

- 10”)

and marginal nonattainmen t for ozone . Under both the PSD or NNSR programs,

i n order to avoid major source status , a source can limit its emissions in a Federally enforceable permit such as a Title V permit to below the threshold

levels. In the initial permit, the permittee reques ted EPA to limit its PTE of carbon monoxide (“CO”) emissions, thereby making the facility non

- major under either

PSD or NNSR for all CAA

- regulated pollutants

. This permit maintains th e
F ederally enforceable limit for annual CO emissions of 88.3 tpy establ ished in the initial permit

. This permit also maintains t he short

- term limit for CO a s 20.2

lb s /hour from all engines at the facility on a combined basis

. However, w e are updating our authority to limit the potential to emit of the source from the gener al requirements under 40 C

. F

. R 71.6(b) to 40 C.F.R 49.158(c) (2)(i) under the newly effective Tribal NSR rule, which applies to sources located on Tribal lands with existing synthetic minor limits established prior to August 30, 2011. Based on these perm it limits and other information included in the permit application, the

PTE of each emission unit is presented in Table 2

.4 Table 2

– Facility

- wide Potential to Emit

Pollutant (tons/year)

Unit NOx VOC SO 2 PM10 CO HAP

ENG 1 13.19 6.59 0.98 3.65 24 .18 0.02

ENG 2 13.19 6.59 0.98 3.65 24.18 0.02

ENG 3 13.19 6.59 0.98 3.65 24.18 0.02

TO1 (ENG 4

and ENG 5 ) 34.33 0.80 1.96 7.29 15.7 0.04

Total 73.90 20.58 4.90 18.23 88.3 0.09

II

. Tribe Information

A. General

The reservation of the Salt River Pima

- Maric opa Indian Community is located in Maricopa County and borders the cities of Mesa, Tempe, Scottsdale, Fountain Hills and metropolitan Phoenix. The Community consists of 52,600 acres, comprised mostly of agricultural lands. The Community is comprised of t wo Indian tribes, the Onk Akimel Au

- Authm (Pima) and the Xalchidom Pii

- pash (Maricopa).

B. Local air quality and attainment status

This facility is located in the area of the Salt River Pima

- Maricopa Indian Community which is currently designated as serio us nonattainment for PM

- 10

and marginal nonattainment for ozone, maintenance area for CO, and attain ment
or unclassifiable for PM

- 2.5, nitrogen dioxide (“ NO2 ”)

, sulfur dioxide (“ SO2 ”)

and lead.

III

. Applicable Requirements

The p ermittee owns and operates five stationary spark ignition (SI) internal combustion engines (ICE) which are considered “ existing ” engines under 40 C.F.R Part 63

, Subpart

ZZZZ

, National Emission Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion E ngines (NESHAP). The ICE engines are therefore subject to NESHAP ZZZZ. This renewal incorporates the applicable requirements under 40 C.F.R Part 63 Subpart ZZZZ.5

IV. Non

- applicable Requirements

TCLEF is a n electricity

- generating facility which u se s landfill gas from the Tri

- Cities

Landfill and Salt River Landfill as a fuel to run a series of engines. The initial Part 71 permit issued to TCLEF by EPA Region 9 in 2000 contained applicable requirements from 40 C.F.R. Part 60, Subpart WWW. Specific ally, the permit contained a nonmethane organic compound (“NMOC”) emission limit ( “ reduce NMOC by 98 weight percent or reduce the outlet NMOC concentration to less than 20 parts per million by volume ” ) set
forth at 40 C.F.R. 60.752(b)(2)(iii)(B), including a requirement to perform the a ssociated performance testing. The NMOC limit applied to engines and an enclosed flare (thermal oxidizer) at TCLEF that combusted landfill gas from the adjacent Tri

- Cities Landfill, which is owned by the Salt River Pima

- Mari copa Indian Community. A t the time that TCLEF was permitted , t he Tri

- Cities landfill , which sends landfill gas or NMOC to TCLEF for flaring, had not yet applied to EPA Region 9 for a Part 71 permit.

EPA has determined that, in such cases where landfill g as is combusted for electricity generation by a separate stationary source, the landfill owners and/or operators are ultimately responsible for compliance with the requirements of Subpart WWW . This responsibility includes the emission control requirements along with the associated testing, monitoring, record

- keeping, and reporting requirements set forth in the regulation s . Therefore

, EPA has deleted the NMOC limit and testing conditions

, Conditions II.A.3, and II.C.3 through II.C.5

, from the TCLEF renewal permit s

. To ensure compliance with the Subpart WWW requirements, t he Part 71 permit EPA Region

9 issued to the Tri

- Cities Landfill on September 27, 2013 incorporate d all applicable requirements from Subpart WWW, including the 98 percent weight NMOC redu ction (or 20 ppm outlet concentration) emission limit and associated performance testing that apply to the engines and thermal oxidizer at TCLEF. EPA anticipates that the owner/operator of Tri

- Cities Landfill will c oordinate with p ermittee to ensure compl iance

with all requirements of Subpart WWW. EPA also intends to incorporate Subpart WWW requirements in the Part 71 permit for Salt River Landfill , issued on February 1, 2008

.

Stationary spark ignition internal combustion engines are also subject to 40 C .F.R Part 60 Subpart JJJJ, Standards of Performance for Stationary Spark Ignition Internal Combustion Engines if the engines were constructed, reconstructed, or modified on or

after June 1 2 , 2006. The engines located at TCLEF are considered “existing” eng ines, constructed prior to June 16, 2006 and have not been modified or reconstructed since. The engines are therefore not subject to New Source Performance Standard JJJJ.

Additionally, the engines located at TCLEF are SI engines and not compression ign ition (CI) engines and therefore 40 C.F.R Part 60 Subpart IIII does not apply.6

The permittee is not proposing any new construction or increase in emissions and is therefore not subject to the Prevention of Significant Deterioration (PSD) permitting

progra m.

V

. Emission Unit Testing and Monitoring

A The applicant has demonstrated through performance testing that its CO

emission s in the past five years have been consistently less than the CO emission

limits included in the initial Part 71 permit by a sign ificant margin. T herefore

, the applicant requested a reduction in the frequency of its required annual test ing

. EPA Region 9 has reviewed the applicant’s request and test results from the first permit term, and agrees that such a change is justified.

Therefore EPA has revised the testing frequency in the permit. TCLEF will be required to conduct CO performance tests on each of the three engines, ENG1, ENG2, and ENG3, venting to the atmosphere , and the thermal oxidizer, TO1

, t hre e times during the perm it term, in the first, third and f if th years.

B In addition, in order to assure compliance with the CO emission limit s for the IC engines and thermal oxidizer, the permit requires quarterly use of portable CO analyzers

. The permit requires the applicant to take corrective action if individual

exhaust CO concentration s of emission units ENG1, ENG2 and ENG3 exceed 265 ppmv @ 15% O 2 , or emission unit TO1 exceed s 5 ppmv @ 15% O 2 (Since ENG4 and ENG5 vent to TO1, it is not necessary to monitor CO concentrations at those emission units).

Table 3 summarizes the CO monitoring and testing requirements in the permit

.

T able 3

– Monitoring Requirements

Requirement Emission

Limit

Condition Monitoring Added to

Part 71 Permit Monit orin g

Condition

CO: 20.2 lb/hr

faci lity

- wide II.A.1 source test,

t hree times per permit

term 265

ppmv
, for ENG1,

ENG2 and ENG3; 5 ppmv for T01, portable analyzer II.C.1,2

CO: 88.3 tons/yr facility

- wide II.A.2 source test,

t hre e times per permit

term II.C.1,27

V I

. Use of All Cred ible Evidence

Determinations of deviations, continuous or intermittent compliance status, or violations of the permit are not limited to the testing or monitoring methods required by the underlying regulations or this permit; other credible evidence (incl uding any evidence admissible under the Federal Rules of Evidence) must be considered by the source and

EPA in such determinations.

VI I

. EPA Authority

Title V of the CAA requires that EPA promulgate, administer, and enforce a Federal operating permits program when a State, local, or Tribal agency does not submit an approvable program within the time frame set by Title V or does not adequately

administer and enforce its EPA

- approved program. On July 1, 1996, EPA adopted regulations codified at 40 C.F.R. Part 71 setting forth the procedures and terms under which the Agency would administer a Federal operating permits program. See 61 Fed. Reg. 34202. These regulations were updated on February 19, 1999 to incorporate EPA's approach for issuing Federal ope rating permits to covered stationary sources in Indian country. See 64 Fed. Reg. 8247.

As described in 40 C.F.R. ' 71.4(a), EPA will implement a Part 71 program in areas

where a State, local, or Tribal agency has not developed an approved Part 70 program

. Unlike States, Indian Tribes are not required to develop operating permits programs, though EPA encourages Tribes to do so. See, e.g., Indian Tribes: Air Quality Planning and Management, 63 Fed. Reg. 7253 (Feb. 12, 1998) (also known as the Tribal Autho rity Rule). Therefore, within Indian country, it is appropriate that EPA administer and enforce a Part 71 Federal operating permits program for stationary sources until Tribes receive approval to administer their own operating permits programs. As t he Sa lt River

Pima

- Maricopa Indian Community has not received approval from EPA to operate a Title

V permits program, it is appropriate for EPA to issue this Part 71 permit.

VII I

. Endangered Species Act

Pursuant to Section 7 of the Endangered Species Act (ESA ), 16 U.S.C. § 1536, and its implementing regulations at 50 C.F.R. Part 402, EPA is required to ensure that any action authorized, funded, or carried out by EPA is not likely to jeopardize the continued existence of any Federally

- listed endangered species or threatened species or result in the destruction or adverse modification of such species’ designated critical habitat. The T itle V permit EPA is issuing to the permittee for the Tri

- Cities Landfill Energy Facility does

not authorize the construction of new emission units, or emission increases from existing8

units, nor does it otherwise authorize any other physical modifications to the facility or its operations. Therefore, EPA has concluded that the issuance of this permit will have no

effect on listed species or their critical habitat.

I X

. Public Participation

A. Public Notice

As described in 40 C.F.R. § 71.11(a)(5), all Part 71 draft operating permits shall be publicly noticed and made available for public comment. The public notice of permit actions and public comment period is described in 40 C.F.R. § 71(d).

There is a 30

- day public comment period for actions pertaining to a draft permit. Public notice will be given for this draft permit by mailing a copy of the notice to the permit applicant, the Salt River Project Agricultural Improvement and Power

District , the affected state (Arizona), local air pollution control agencies, emergency planning agencies, local government, land use agencies, federal and local land use agencies

. A copy of the notice will also be provided to all persons who have submitted a written request to be included on the mailing list. Public notice will also be published in the Arizona Republic and the Au

- Authm Action

News.

B. Opportunity for Comment

Members of the public may r eview a copy of the draft permit prepared by EPA, this statement of basis for the draft permit, the application, and all supporting materials submitted by the source at the address listed in section IX.E , below. Copies of the draft permit and statement of basis can also be obtained from EPA’s

website (http://www.epa.gov/region09/air/permit/r9

- permits

- issued.html) , or by contacting Roberto Gutierrez at the EPA address or phone number listed in

section IX.E , below. All documents will be available for review a t the EPA Region IX office indicated in section IX.E , below, during regular business hours.

If you believe that any condition of the draft permit is inappropriate, you must raise all reasonably ascertainable issues and submit all arguments supporting your position during the 30

- day public comment period. Any supporting documents must be included in full and may not be incorporated by reference, unless they are already part of the administrative record for this permit or consist of tribal, state

or federal statutes or regulations, or other generally available referenced materials.

All comments received during the public comment period and all comments made during any public hearing will be considered in arriving at a final decision on the permit. The final permit is a public record that can be obtained by request. A statement of reasons for changes made to the draft permits and responses to9 comments received will be sent to all persons who commented on the draft permit.

C. Opportunity to Request a Hearing

A person may submit a written request for a public hearing to Roberto Gutierrez

, at the address listed in section IX.E , below, by stating the nature of the issues to be raised at the public hearing. EPA shall hold a public hearing if EPA finds, on

the basis of requests, a significant amount of public interest in this draft permit. If a public hearing is held, EPA will provide public notice of the hearing and any person may submit oral or written statements and data concerning the draft permit.

D. Mailing List

If you would like to be added to our mailing list to be informed of future actions on this or other Clean Air Act permits issued in Indian Country, please send your

name and address to Roberto Gutierrez at the address listed below.

E. Contact Information

R oberto Gutierrez (AIR

- 3) U.S. Environmental Protection Agency, Region IX

75 Hawthorne St. San Francisco, CA 94105 Phone: (415) 9 47

- 4276

E

- mail: Gutierrez

. Roberto @epa.gov