-t3Sr4, UNITED STATES ENVIRONMENTAL PROTECTION AGENCY°

REGION
IX1pPRo1

75 Hawthorne Street San Francisco, CA 94105-3901 February 19, 2013 Mr. Dave Brown Compliance Manager, Sierra Pacific Industries P.O. Box 496028 Redding, California 96049 Re: Final Prevention
of Significant Deterioration Permit for Sierra Pacific Industries- Anderson Division Dear Mr. Brown: In accordance with the Clean Air Act (CAA), asamended (42 U.S.C 7401 et seq.), the U.S. Environmental Protection Agency, Region

9 (EPA) has reviewed your application for aCAA Prevention of Significant Deterioration (PSD) permit authorizing the construction and operation of anew31 megawatt biomass and natural gas-fired cogeneration unit and auxiliary equipment

atthe Sierra Pacific Industries- Anderson Division facility in Anderson, California. EPA issued and published requests for public conrment regarding EPA’s proposed action onthe above- referenced application

in September 2012. EPA received comments during the public comment period. Enclosed

is a copyof our Response
to Comments document for ourfinal permit decision. After consideration
of the expressed views of all commenters, the pertinent federal statutes and regulations, and additional material relevant
tothe application and contained
in ourAdministrative Record, EPA hereby issues the enclosed PSD Permit for the facility described above. The final permit, Response
to Comments document and other key documents relevant
tothe fmal PSD permit arealso available through

alink atourweb site, www.epa. gov/region09/air/permit/r9-permits-issued.html#psd,

orat www.regulations.gov (Docket ID # EPA-R09-OAR-2012-0634). Within 30 days after the service of notice announcing the EPA’s final permit decision, any personwho filed comments onthe proposed permit may petition the EPA’s Environmental Appeals Board (EAB) to review anycondition of the final permit. The petition must include

astatement of the reason(s) for requesting review by the EAB, including

ademonstration that anyissues being raised wereraised during the public comment period tothe extent required by the regulations

at 40 CFR Part 124 and when appropriate,

a showing that the conditions
in question arebased on 1) a finding of fact orconclusion of law which is erroneous,
or 2) anexercise of discretion
oran important policy consideration which the EAB should, in its discretion, review. Please see40 CFR

§ 124.19 and visit http:I/www.epa.govleab/

for moreinformation regarding the procedures for appeal of aPSD permit decision
tothe EAB. This PSD permit shall take effect thirty (30) days from the date of service of notice of EPA’s final permit decision unless

a petition(s) fbr appeal
is properly and timely filed with the EAB. In the event

a PrintedonRecycled Paperpetition(s) for review
is filed, construction
of the facility cannot begin under this PSD permit until resolution of the EAB petition(s). If you have any questions regarding this matter, please contact Omer Shalev of the EPA’s Region

9 Permits Office at (415) 972-3538. cc: Eric Albright, Environ John Waidrop, Shasta County Air Quality Management District Michael Tolistrup, California Air Resources Board Deborah Jordan Director, Air Division 2