APPROVAL TO CONSTRUCTIMODIFY

A STATIONARY SOURCE

U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION 9

PSD PERMIT NUMBER: SAC 83-02

PERMITTEE: Pacific Oroville Power, Inc.

FACILITY LOCATION: 3050 South 5th Avenue

Oroville, California 95965

Incompliance with provisions ofthe Clean Air Act, as amended (42 U.S.C. 7401 et seq.),

the Pacific Oroville Power, Inc. is granted approval to construct and operate a wood-fired

electrical generating facility in accordance with the plans submitted with the application

and with the Federal regulations governing the Prevention of Significant Air Quality

Deterioration (40 CFR 52.21) and other conditions attached to this document and made a

part ofthis approval.

Failure to comply with any condition or term set forth in this approval will be considered

grounds for enforcement action pursuant to Section 113 ofthe Clean Air Act.

This Approval to Construct/Modify a stationary source grants no relieffrom the

responsibility for compliance with any other applicable provision of40 CFR Parts 52, 60

and 61 or any applicable federal, state, or local air q~ality regulations.

This approval shall become effective immediately.

DebOrah~~~/-

Director, Air Division

Date
Pacific Oroville Power, Inc. 

PSD Permit No. SAC 83-02 

Amended December 13, 2010

2

Pacific Oroville Power, Inc. 

PSD Permit No.: SAC 83-02 

Permit Conditions 

The November 29, 1983 Approval to Construct issued to Pacific Oroville Power, Inc. for 

the construction and operation of a wood-fired electrical generating facility in Oroville, 

California, was amended on May 24, 1988, July 24, 1996, December 23, 1996, March 15, 

1999, April 1, 1999, July 20, 2004, April 2, 2009, and with a further administrative 

amendment on December 13, 2010. 

I. Permit Expiration 

This Approval to Construct/Modify shall become invalid (1) if construction is not 

commenced (as defined in 40 CFR 52.21(b)(8)) within 18 months after the 

approval takes effect, (2) if construction is discontinued for a period of 18 months 

or more, or (3) if construction is not completed within a reasonable time. 

II. Notification of Commencement of Construction and Startup

The Regional Administrator shall be notified in writing of the anticipated date of 

initial startup (as defined in 40 CFR 60.2(o)) of each facility of the source not 

more than sixty (60) days nor less than thirty (30) days prior to such date and shall 

be notified in writing of the actual date of commencement of construction and 

startup within fifteen (15) days after such date. 

III. Facilities Operation

All equipment, facilities, and systems installed or used to achieve compliance 

with the terms and conditions of this Approval to Construct/Modify shall at all 

times be maintained in good working order and be operated as efficiently as 

possible so as to minimize air pollutant emissions. 

IV. Malfunction

The Regional Administrator shall be notified by telephone within 48 hours 

following any failure of air pollution control equipment, process equipment, or of 

a process to operate in a normal manner which results in an increase in emissions 

above any allowable emissions limit stated in Section XI.D of these conditions. 

In addition, the Regional Administrator shall be notified in writing within fifteen 

(15) days of discovery of any such failure. This notification shall include a 

description of the malfunctioning equipment or abnormal operation, the date of 

the initial failure, the period of time over which emissions were increased due to 

the failure, the cause of the failure, the estimated resultant emissions in excess of 

those allowed under Section XI.D of these conditions, and the methods utilized to 

restore normal operations. Compliance with this malfunction notification 
Pacific Oroville Power, Inc. 

PSD Permit No. SAC 83-02 

Amended December 13, 2010

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provision shall not excuse or otherwise constitute a defense to any violations of 

this permit or of any law or regulations which such malfunction may cause. 

V. Right to Entry

The Regional Administrator, the head of the State Air Pollution Control Agency, 

the head of the responsible local air pollution control agency and/or authorized 

representatives, upon the presentation of credentials, shall be permitted: 

A. to enter upon the premises where the source is located or in which any 

records are required to be kept under the terms and conditions of this 

Approval to Construct/Modify; and 

B. at reasonable times, to have access to and copy any records required to be 

kept under the terms and conditions of the Approval to Construct/Modify: 

and 

C. to inspect any equipment, operation, or method required in this Approval 

to Construct/Modify; and 

D. to sample emissions from the source. 

VI. Transfer of Ownership

In the event of any changes in control or ownership of facilities to be constructed 

or modified, this Approval to Construct/Modify shall be binding on all subsequent 

owners and operators. The applicant shall notify the succeeding owner and 

operator of the existence of this Approval to Construct/Modify and its conditions 

by letter, a copy of which shall be forwarded to the Regional Administrator and 

the State and local Air Pollution Control Agency. 

VII. Severability

The provisions of this Approval to Construct/Modify are severable, and, if any 

provision of this Approval to Construct/Modify is held invalid, the remainder of 

this Approval to Construct/Modify shall not be affected thereby. 

VIII. Other Applicable Regulations

The owner and operator of the proposed project shall construct and operate the 

proposed stationary source in compliance with all other applicable provisions of 

40 CFR Parts 52, 60 and 61, and all other applicable Federal, State and local air 

quality regulations. 
Pacific Oroville Power, Inc. 

PSD Permit No. SAC 83-02 

Amended December 13, 2010

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IX. Special Conditions

A. Air Pollution Control Equipment 

1. Pacific Oroville Power, Inc. shall install, continuously operate, and 

maintain an electrostatic precipitator (ESP) servicing the two 

wood-fired boilers. Prior to being vented to the atmosphere, all 

exhaust gases from both boilers shall be directed through a cyclone 

type dust collector and then vented through the ESP. 

2. Particulate emissions resulting from the use of the fuel preparation 

equipment shall be collected and exhausted through a cyclone 

collector prior to discharge into the atmosphere. 

B. Steam Production Limit 

Steam production from the two combined boilers shall not exceed 220,000 

pounds per hour on a daily average. Pacific Oroville Power, Inc. shall 

maintain a permanent log of the temperature, pressure and mass flow rate 

of the steam produced. These records shall be maintained by Pacific 

Oroville Power, Inc. in a convenient location for a period of not less than 

five years and shall be available for inspection as specified in Condition 

V. 

C. Fuel Usage 

Pacific Oroville Power, Inc. shall at all times utilize biomass fuel to fire 

each boiler. 

D. Emission Limits 

On and after the date of startup of the two wood-fired boilers, Pacific 

Oroville Power, Inc. shall not discharge, or cause the discharge into the 

atmosphere from the ESP stack: 

1. Gases which exhibit greater than 10 percent opacity, except during 

startup and shutdown of the boilers, at which time opacity shall not 

exceed: 

a. 20 percent during periods when one boiler is operating 

under normal conditions and the second boiler is in either 

startup or shutdown. This operating mode is defined as 

“Mode A.” 
Pacific Oroville Power, Inc. 

PSD Permit No. SAC 83-02 

Amended December 13, 2010

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b. 40 percent during periods when one boiler is undergoing 

startup or shutdown and the other boiler is not operating 

(i.e., cold). This operating mode is defined as “Mode B.” 

During periods of grate cleaning the opacity shall not exceed 20 

percent. Startup and shutdown are defined in 40 CFR §60.2 and 

the boilers can be presumed to be in startup or shutdown mode if 

CO2 concentration in the exhaust gas is less than 12 percent. The 

startup of one boiler must be completed before the second boiler 

begins operation. 

2. Pollutants in excess of the following limits: 

Pollutant Maximum Emission Limit

NOx (as NO2) 95 ppm - corrected to 12% CO2 and based on 

a 24-hour rolling average, calculated hourly. 

Limit does not apply during boiler startup or 

shutdown as defined in 40 CFR §60.2. The 

boilers can be presumed to be in startup or 

shutdown mode if CO2 concentration in the 

exhaust gas is less than 12%. 

NOx (as NO2) 43.3 lbs/hr - 24-hour rolling average, 

calculated hourly. 

PM 14.5 lbs/hr based on a 3-hour averaging time. 

Compliance with these limits shall be determined in accordance with 

Permit Condition IX.F.1. 

E. Performance Tests 

1. Within 60 days after achieving the maximum production rate of the 

power generating facility, but no later than 180 days after initial 

startup (as defined in 40 CFR 60.2(o)) of the boilers and at such 

times as may be specified by EPA, Pacific Oroville Power, Inc. 

shall conduct or cause to be conducted performance tests (as 

defined in 40 CFR 60.8) for NOx and particulate matter (PM) on 

the exhaust stack gases from the ESP. Pacific Oroville Power, Inc. 

shall furnish the Butte County Air Pollution Control District and 

the EPA (Attn: AIR-5) a written report of the results of such tests. 

Performance tests for NOx and PM shall be conducted on at least 

an annual basis. In lieu of an annual performance test and to 

ensure compliance with the 24-hour NOx limit, Pacific Oroville 

Power, Inc. may perform an annual relative accuracy testing 

analysis in accordance with 40 CFR part 60 Appendix F on the 
Pacific Oroville Power, Inc. 

PSD Permit No. SAC 83-02 

Amended December 13, 2010

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NOx continuous monitoring equipment requirement in Permit 

Condition IX.F.1.b. Upon written request and supporting 

justification, EPA may waive a specific annual test and/or allow 

for testing to be done at less than the maximum operating capacity. 

Such requests must be submitted (Attn: AIR-5) no later than 60 

days prior to the annual test date. 

The annual compliance test for particulate matter shall include at 

least one run during a grate cleaning event. The test run performed 

during the grate cleaning event shall include as much of the grate 

cleaning event as possible. The average pounds per hour of 

particulate matter emissions shall be calculated by the following 

equation rather than the arithmetic average as outlined in 40 CFR 

60.8(f). 

E = ESGR

( )*

*

*

*

AB S

A R

E

R S

R

B S

A R NOGR

+

+ − − ⎡

⎣

⎢ ⎤

⎦

⎥

where: 

E = average pounds of particulate matter emissions per 

hour [lb/hr] 

ESGR = average E of sample(s) containing grate cleaning 

[lb/hr] 

ENOGR = average E of sample with no grate cleaning [lb/hr] 

A = hours of grate cleaning during sample [hr] 

B = hours not grate cleaning during samples containing 

grate cleaning [hr] 

R = average hours of operation per 24 hour period [hr] 

S = average hours of grate cleaning per 24 hour period [hr] 

2. With the exception of the particulate matter testing requirements 

described in Special Condition IX.E.1, performance tests for the 

emissions of NOx and PM shall be conducted and the results 

reported in accordance with the test methods set forth in 40 CFR 

60, Part 60.8 and Appendix A. The following test methods shall 

be used: 

a. Performance tests for the emissions of NOx shall be 

conducted using EPA Methods 1-4 and 7 procedures. 

b. Performance tests for the emissions of PM shall be 

conducted using EPA Methods 1-4 and 5 procedures. 

At least 30 days prior to actual performance testing, Pacific 

Oroville Power, Inc. shall submit to EPA (Attn: AIR-5): (1) a 
Pacific Oroville Power, Inc. 

PSD Permit No. SAC 83-02 

Amended December 13, 2010

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quality assurance project plan detailing methods and procedures to 

be used; and (2) a written quality assurance plant. Such a plan 

shall conform to EPA guidelines for developing project plans 

(“Guidelines for Developing a Quality Assurance Project Plan,” 

QAMS 005/80). A test plan or QA plan that does not have EPA 

approval may be grounds to invalidate any test and require a retest. 

In lieu of the above-mentioned test methods, equivalent methods 

may be used with prior written approval from the EPA. 

3. For performance test purposes, sampling ports, platforms and 

access shall be provided by Pacific Oroville Power, Inc. on the 

ESP exhaust stack and the coal mill stack in accordance with 40 

CFR 60.8(e). 

4. Source Tests for Toxic Pollutants 

Pacific Oroville Power, Inc. shall participate and cooperate in any 

tests for toxic pollutants from their facility, conducted by the State 

Department of Health and/or the California Air Resource Board. 

F. Continuous Monitoring 

1. Prior to the date of startup and thereafter, Pacific Oroville Power, 

Inc. shall install, maintain and operate the following: 

a. a transmissometer system for continuous measurement of 

the opacity of stack emissions. The system shall meet EPA 

monitoring performance specifications (40 CFR 60.13 and 

40 CFR Part 60, Appendix B, Performance Specification 

1). 

b. a continuous emissions monitor system for the continuous 

measurement of NOx stack emissions. The system shall 

meet EPA monitoring performance specifications (40 CFR 

60.13, 40 CFR Part 60, Appendix B, Performance 

Specification 2, and the quality assurance procedures in 40 

CFR Part 60, Appendix F). 

2. Pacific Oroville Power, Inc. shall notify EPA (Attn: AIR-5) of the 

date upon which demonstration of the continuous monitoring 

system performance commences (40 CFR 60.13(c)). 

3. Pacific Oroville Power, Inc. shall submit a written report of all 

excess emissions to EPA (Attn: AIR-5) for every calendar quarter. 

The report shall include the following: 
Pacific Oroville Power, Inc. 

PSD Permit No. SAC 83-02 

Amended December 13, 2010

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a. The magnitude of the excess emissions computed in 

accordance with 40 CFR 60.13(h), any conversion factors 

used, and the date and time of commencement and 

compilation of each time period of excess emissions. 

b. Specific identification of each period of excess emissions 

that occurs during startups, shutdowns, or malfunctions of 

any of the boilers. The nature and cause of any 

malfunction (if known) and the corrective action taken or 

preventative measures adopted shall also be reported. 

c. The date and time identifying each period during which the 

continuous monitoring system was inoperative except for 

zero and span checks, and the nature of the system repairs 

or adjustments. 

d. When no excess emissions have occurred or the continuous 

monitoring systems (including CO2 measurement device) 

has not been operative, repaired, or adjusted, such 

information shall be stated in the report. 

Excess emissions shall be defined as any 6-minute average, as 

measured by the continuous monitoring system, which exceeds an 

opacity of 10 percent, except for one 6-minute period per hour of 

not more than 15 percent opacity. During grate events, excess 

emissions shall be defined as any 6-minute average, as measured 

by the continuous monitoring system, which exceeds an opacity of 

20 percent, except for one 6-minute period per hour of not more 

than 27 percent opacity. 

For startup and shutdown periods, excess emissions shall be 

defined as any 6-minute average, as measured by the continuous 

monitoring system, which exceeds an opacity of 40 percent opacity 

if the boilers are in Mode B; and 20 percent if the boilers are 

operating in Mode A, as defined in condition IX.D.1. 

4. Pacific Oroville Power, Inc. shall maintain a file of all 

measurements, including monitoring systems, monitoring device, 

and performance testing measurements: all continuous monitoring 

system performance evaluations; all continuous monitoring 

systems or monitoring device calibration checks; adjustments and 

maintenance performed on these systems or devices; all periods of 

grate cleaning including the times the grate cleaning began and 

ended, the boiler number, and the zone within each boiler where 

grate cleaning occurred; and all other information required by 40 

CFR 60 recorded in a permanent form suitable for inspection. The 
Pacific Oroville Power, Inc. 

PSD Permit No. SAC 83-02 

Amended December 13, 2010

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file shall be retained for at least two (2) years following the date of 

such measurements, maintenance, reports and records. 

5. Not less than 90 days to the date of startup of either boiler, Pacific 

Oroville Power, Inc. shall submit to the EPA (Attn: AIR-5) a 

quality assurance project pal for the certification and operation of 

the continuous emission monitors. Such a plan shall conform to 

the EPA document “Guidelines for Developing a Quality 

Assurance Project Plan,” (QAMS 005/80). Continuous emission 

monitoring may not begin until the QA project plan has been 

approved by EPA Region 9. 

G. Opacity Limit 

Based on the actual opacity measured at the time of performance testing 

for PM (as required by Permit Condition E), the opacity emission limit 

contained in Permit Conditions D and F.3 may be revised by EPA to 

reflect a more stringent emission limit. 

H. Additional Recordkeeping and Reporting Requirements 

Record keeping and Reporting Requirements as required under 40 CFR § 

52.21(r)(6) for the project described in the Pacific Oroville Power PSD 

permit application submitted to the EPA and dated June 5, 2003. 

1. The owner or operator shall document and maintain a record of the 

following information: 

a. A description of the project; 

b. Identification of the two wood-fired boilers located at 

Pacific Oroville Power; 

c. A description of the applicability test used to determine that 

the project is not a major modification for any regulated 

NSR pollutant, including the baseline actual emissions, the 

projected actual emissions, the amount of emissions 

excluded under 40 CFR § 52.21(b)(41)(ii)(c) and an 

explanation for why such amount was excluded, and any 

netting calculations, if applicable. 

2. The owner or operator shall submit a report to EPA Region 9 

(Attn: AIR-3) within 60 days after the end of each calendar year. 

The report shall include the following records which must be 

generated setting out the unit's annual emissions during the 

calendar year that preceded submission of the report: 
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PSD Permit No. SAC 83-02 

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a. The owner or operator shall monitor the emissions of any 

regulated NSR pollutant that could increase as a result of 

the project and that is emitted by any of the emissions 

unit(s) whose emissions of a regulated NSR pollutant could 

be affected by the project; and 

b. The owner or operator shall calculate and maintain a record 

of the annual emissions, in tons per year on a calendar year 

basis, for a period of 5 years following the issuance of the 

PSD permit modification for the project. 

3. The owner or operator shall make the information required to be 

documented and maintained pursuant to Special Condition IX.H. 

available for review upon a request for inspection by the EPA and 

the general public pursuant to the requirements contained in 40 

CFR § 70.4(b)(3)(viii). 

I. Temporary FGR Feasibility Study 

Pacific Oroville Power, Inc. may temporarily install, operate, and test a 

flue gas recirculation (FGR) system subject to the following conditions: 

1. Installation, operation, and testing of the FGR system shall occur 

within 180 days after permit issuance. 

2. Pacific Oroville Power, Inc. shall submit to EPA a test protocol 

prior to testing the FGR system. The protocol shall include 

procedures for air emissions testing, and shall provide the time 

period for which Pacific Oroville Power, Inc. will be conducting 

any tests. Pacific Oroville Power, Inc. may request additional time 

to conducting any tests, which must be approved in writing by 

EPA. FGR testing shall be conducted in accordance with the 

submitted protocol, and any changes required by EPA. 

3. Pacific Oroville Power, Inc. shall continue to operate all 

continuous emissions monitoring systems (CEMS) required by this 

PSD permit. Pacific Oroville Power, Inc. shall also monitor and 

record NOx, CO, O2, opacity, underfire air, boiler bed depth, and 

steam production, and other process parameters requested by EPA, 

during the testing the of the FGR system. 

 

4. Pacific Oroville Power, Inc. shall submit a report of the results of 

testing the FGR system to EPA and the Butte County Air Quality 

Management District within 60 days of completing all tests. All 

periods of noncompliance with any existing permit emission 
Pacific Oroville Power, Inc. 

PSD Permit No. SAC 83-02 

Amended December 13, 2010

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limitation shall be identified in the report. In addition, the report 

shall verify any intent to proceed with necessary notifications or 

applications for permanent modifications to the existing facility. 

X. Agency Notifications

A. Unless otherwise directed by the EPA or this permit, the owner or operator 

shall submit a copy of all test plans, reports, certifications, notifications, 

and other information pertaining to compliance with this permit to: 

Director, Air Division (Attn: Air-5) 

U. S. Environmental Protection Agency, Region 9 

75 Hawthorne Street 

San Francisco, CA 94105 

Email: R9.AEO@epa.gov 

 Fax: (415) 947-3579 

B. The owner or operator shall submit permit applications, permit 

amendments, and other applicable permit information, which includes but 

not limited to installation of control equipment, replacement of an 

emissions unit, and changes that contravene permit terms, to: 

. Director, Air Division (Attn: AIR-3) 

U. S. Environmental Protection Agency, Region 9 

75 Hawthorne Street 

San Francisco, CA 94105 

C. Copies of all correspondence required by this PSD Permit shall be 

forwarded to: 

 Air Pollution Control Officer 

Butte County Air Quality Management District 

2525 Dominic Drive, Suite J 

Chico, CA 95928