I
r I 

# w

-- MTIposo**CO(iE~ERATION** COP ANY 

# RECEIVED
-.:> I 

### AUG 

# bt

..2009 Permits Uttice Air-3 

## u.s. EPA. Region 9 

### August 28, 2009**:-.~.** - .- i

.; •• l : .:"**'~**...

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### !
I 

### , . -'.' .. :



## ..**~.** : .. ", .

## . •. ' J;

..' f' 

### Ms. Laura Yannayon United States EPA, Re ion 9 Air Division Permits ffige (Air-3) 75 Hawthorne Street I 

### II ' San Francisco, CA. 94

1

### 05-

1 

### 3901 I 

## I I : I .



### . ," '. Subject: Mt. Poso Cogeneration Company; Minor Modification to

'. '. f. I I I 

# 'n :**::M:o:::::~** i'

# e=i~~:~**~::: N~~:::** **conslli~t** I r. Ted Guth Tills lettcr is

"" ",.,""" written to respond to y 

### urrequest for additiohaJ information. 

# r

..

# :::,.~ -:. - ' Mt. Poso Cogeneratio Jl

# ~ompany is

# apP1Yin~ for a PSD Minor Modification that consists ofthe following: In Section IX.F, add the words**'~r** 

### biomass up to 110,800 pounds per hour on a dry 

### basis". The facility d siI;es to have the flexlbility to combust in any combination: up to 100%**,.~~.'** 

### r.,:'.;'. coal, petroleum coke, r tire derived fuel (TPF) or biomass. The facility is currently permitted

### 'ii.:;~"" to combust any 

### comb· ation ofcoal, PetrollUm. cOke. or TDF. Hence, the only physical change

# ~:'ilt. to the PSD

# r~ll ri1ional !'orjg 

# r·· 1 '" 

### This minor**modifi~ati** 

### ,n**~ll** 

### give us the abrty to add biomass 

## 1<j the fuel blend or bum 100%

.,: ..

# ·.·~,~·cf~~.::~

..

# ,.J:,;:,.,':~~:.·::t.; .•

# ~.·.**:.~,i.:**•.

# _,~,~.: ,.: :.'..

# :~:~~s**S:t~~~~t~:U~{dr~ :~::::~:** **;::~~e::~·m:s~~dO;:~:~ ~:v:::~i:~i~~** 

_

..

### f':.~~v~ : 

### to combust 100% bio r 

### Js is very

### importan~ to the electric utilitiek who, as you are aware, will need to have a signi

### ~callt percentage of tHeir portf6lio represented by renewable fuels. The

.. website was written I··th them in mind. while eventually the 100% biomass firing scenario is likely, we must kee the existing three 

## JIrmitted fuels in the permit to ensure maximum

## fle~ibility. 

## I, 1. 

### f " : I



### .. Mt. Poso has experie 1 

### cJ with blending an independently firing the three currently permitted

. ,fuels and up to 30% b omass, by weight as

### ~art ofthe conducted "trial bum" program. Per your ".:' .".' suggestion in your r9 ief of our San Joa4uin Valley Air Pollution Control District (APCD)

### _"'~.'~.**-'~_~.;.~'Auth?rity** to constru1t

### a.PPli~ation (to effe t the same

### chang~**w~** are

### re~uesting to our PSD 

### ;: .. y, . permIt), Mt. Poso C eneratlon Company greed to a reductIOn III 

### permItted CO levels from**!-;.">~::-i.:400ppm** 

### to 183ppm. I f r I:

.**:::~,** Fi' " "

.. " ,I 

### ! 

### I t
.. i.';if2.-:-**';~.** • ..-:. . r i

### .~~.**:~r**

# ..'· In summary, Mt. POStCogeneration Comp I 

### y desirrs to have th ability to combust any ofthe 

# :it

# ·<·f following f?ur fuels,**,i~er** 

### by itself or**~n** 

# fblend with one or more ofthese permitted fuels: ;1:;- f'

. . 

### coal, petroleum coke, idmass and tire deriv d fuel. I I I " I I t' t I I I ' I

, 8302 Espresso**Drlv~.** SUite 130 Bakersfle,ld. CA 9331 f 661/663-3155 Fax; 661/663-3164 

## .------**-·-r~--o-·_··----····_'-·----·T---T---r--------···**I There is no "worst casr" fuel or combination offuels from an air emissions standpoint. In the case of NOx , when a

### rse~ point" slightly bJlow the Ipermitted

### co~centration limit is reached, additional ammonia injection (for the Thetmal

### De~Ux reaction) is automatically triggered. Thus, the NOx concenb-atibns for each fuellblend arel equal. LikeWise with 

### 802, the set point automatically injects

### ~otJ limestone, so that equal 

### 802 pollutant .levels are achieved for each fuellblend. I I I The baghouse controls the IParticulate Matterl (PM) er¢ssions which are comprised primarily of ash from the fuel and

### g~psum (calcium sulfate), the product ofthe

### r~action oflimestone and S02. Biomass typically has 

## k $h concentration

### ~tween that ofcoal and petroleum coke, which will result in equal orlowerP¥ emissions. I The extended combUstionilone residence time in a cirlulating fluidized bed combustor results in minimization of

## carb~1**m~nox~de** and

## hYdr0i~bOns,**ih~ependent** Ofthe fuel/blend.

.. In summary, the addItion, lofbIOmass fuel Will result III equal or 'ower amounts ofall cntena pollutant emissions.

### ~t. Poso CogenerationlCompan y will ensure!that only clean biomass will be combusted at the

### fa(Cili~. In accordance with the eXisting Authonty to Construct Permit from the APCD, Permit Nubber: 8-91-3-12, thd plant is limited to the following materials in the biomass: II I II I 

### • Biomass

### intro'du~ed into the combustorshallnotcontain

### m~re than 2% 

### by weight nonbiomass

### mate~iall (plastics, metal, phinted

### an~ preservativJ-treatedwood, roofing

## material,fibe~ girS, etc.). [DistricjRule 4102] To comply withthis Ilit:the facility has included the

# ~OllOwing requirement as part ofall ofits
I II I biomass procurement**aJgr~ements:** I



### . ExcludedMatJia)l The Wood Waste shall

# no~ contain any1ee ash, soil, cinder, residual of palm, or**mJlbe~ry** 

### andshall befree of foreign material, including, butnot limitedto, I ,I I I

I 

### sand, stone, metal, glass, rubber, plastics, pressure treatedor leadbased paintedwood, chemicals andany hazhrd,bus or toxic substan

l l 

### ces as

### d~fined under California or federallaw.
I II I 

### The Wood Waste shall**~e** 

### substantially free 

### 0]grass andleaves. The Wood Waste ash

# s~al}lnot exceedthe

# ca~ifornia Jtablishedthrf!sholdfor classification of the ash as a hazardouslwasteper §66261.24(a)(2). THese thresholds are listedin Table B1 below.

-2-

II I I 

### TABLE B-1 STAITE OF CALIFORNIA REGULAIfORY LEVEL CONCENTRATION OF METALS

! I 

### PER TITLE 22l SECTION 66261.241

### C~LIFORNIA CODE OF REGULATIONS

I I

# ~J**~_~ ~~~L~C~2J~)** **TI~~~** Antimony 15 500 Arsenic 5.0 500 Asbestos (all forms) 1.0 (as %) Barium (except barite) 100 10,000 Cadmium 1.0 100 Chromium (VI) 5 500 Chromium (III) 5 2,500 Cobalt 80 8,000 Copper 25 2,500 Lead 5.0 1,000 Mercury 0.2 20 Molybdenum 350 3,500 Nickel 20 2,000 Selenium 1.0 100 Silver 5 500 Thallium 7 700 Vanadium 24 2,400 Zinc 250 5,000

1 Include elemental metal and/or metal compounds 2 Soluble Threshold.

### L~fitiFoncent~ation 3 Total Threshold LImIt qmcentratton


### Allspecifications will

# 't"J, orexceedthe requirements defined forIRenewable Fuel in orderto ensure thattheProjec'willqualify as an EligibleReJewableEnergyResource as definedby the California Energy Coinmission. II

I

1

- 3 -

# c Each load offuel will li>e

### ~isually inspected when received. It will be rejected iffound to contain non-biomass material. I

### ~dditionally, fuel

### ~uppliers lwill receive Isurprise inspections at their loading sites, to ensure

I they are conscientiously providing bi6mass that meets the plant specifications. I When the plant was origirihlly permitted in 1986, the entire property was inspected by a biologist who did not find any e11ndffil

.. 1 gered species. Ais part Ofl,Mt. Poso's

## r~cent Conditional Use Pennit process with the Kern CoJnty Planning Depbment, the portion o£the plant's existing property to be designated for

### u~e 

# J part ofthe propo:sed physical modifications (fuel yard and ancillary equipment) was

### reinsPtct~~ by a biologist. A separatJ pennit applihation has been filed with the APCD for these modifications. The land is tilled for Ifire protectioh and no endangered species were encountered by the *ologist, whose rePort is attached. To ok knowledge, this report has been seen only by the Kern County Planning Departfnent; it has not been submitted to the US Department ofFish an; Wildlife. Apart from the Kern lojty Planning Depanment and the APCD,Iwe are not aware ofanother local agency to which

# I cir y ofthe proposed PSD mollification ShOrld be sent. Please refer any**furthe~** questions you may have to Dr. Ted Guth at (619) 987 - 1111 or Mr. R. Wayne Terry at (661) 6631 

## L 3155. ThankyoJ for you continued gui(tance.

I
Roger . Allred General Manager II Mt. Poso Cogeneration Company Title V Responsible 0rCiW
Enclosures: Quad Knopf

# ~iOIOgiCal Pre-Consf!ction Survey Original

### L~tter ofApplication fOIi Minor Modification

II

I cc: R. Wayne

# TerryNt.~illennium EnergYiI' LLC Dr. Ted GuthlPermit {Consultant

I Kristopher RiCkards/rill Joaquin Valley 1\.irPOllUrion Control District

I



### -4-

## -- 

# - 

# - I 

### I 

# MT. POSO COGENERATION 

# RECE\VED AUG - 7 2009 COMPANY 

### Perm,ts vance Air-3 U.S. EPA. 

### Relton 9

August 3, 2009

Ms. Laura Yannayon Environmental Protection Agen y Region IX Attn: Air-3 ! I 75 Hawthorne Street I 

### I San Francisco, CA 94]05 

### I Ref: PSD Permit SJ-86-09 (Amended IX.H January 9, 2009) I 

### I Dear Ms. Yannayon; I j Mt. Poso Cogeneration Company accepts the EPA proposed reduction in site PMIO emissions from the currentpermitted bo+t

### o~ 34.7 tons per year to 26.7 tons per year. Please continue to process our applicatioJ fori a minor modification to our existing PSD Permit with the reduction indicated. I 

# I I I

... .i. Your cooperation in t matter s greatly appreciated and iffurther information is needed please I I ' , contact me by phone at (661) ,663 :3,155 oremail: allred@2000energy.com. I I I I Sincerely, , 

### I 

### I 

# ( t4Il;

; , "Roge C. Allred

General Manager i Mt. Poso Cogeneration

### ~ompanl Title V Responsible

# 0iCi

# 1i 

## !

cc: Wayne TerryNice**Plr9si~** r;'t/Millennium Energy, LLC I i I Dr. Ted Guth I ! 

### I I I : : William DicksoWPlantManager/Mt. Poso Cogeneration

### Comp~y i :.-... '

8302 Espresso Drive, Suite 13q Bakersfield, CA 93312 661/663-3155 

### ----'-------------

..-1

# -1-\---- Fax: 661/663-3164

## -- 

# - - MT. POSO COCENERATION COM PAN Y

July 8, 2009

Ms. Laura Yannayon Environmental Protection Agency Region IX Air Division Permits Office (Air-3) 75 Hawthorne Street San Francisco, CA 94105-3901 Dear Ms. Yannayon; 

# RECEIVED JUL 14 2009 Permits utticeAir-3 

### U.S. EPA. Region 

### 9

j: Thank you for assisting Mr. Wayne Terry and Dr. Ted Guth with the Mt. Poso Cogeneration Company permit modification to include "and or biomass" in the EPA Prevention of Significant Deterioration (PSD) permit. This letter is written per your suggestion to Dr. Guth in yourtelephone conversation last week. Mt. Poso Cogeneration Company formally requests a 180 day extension to the biomass co-firing test bum that commenced on January 19,2009. The data we are obtaining and sharing with EPA continues to be extremely important in determining our ability to quantify our projected emissions and correctly identify any new equipment needed. We appreciate your guidance in this matter and look forward to continuing the biomass cofiring test bum while our PSD application remains underreview. I i

Roger
. Allred Mt. Poso Cogeneration Company General Manager Title V Responsible Official

I i I cc: Wayne TerryNice PresidentlMillennium Energy, LLC Dr. Ted Guth I William DicksonIPlant Manager/Mt. Poso Cogeneration Company**~~93..~spresso** Drive, Suite 130 Bakersfield, CA 93312 661/663-3155 Fax: 661/663-3164

# -- - 

# - 

# MT. POSO COGENERATION COMPANY

May 12,2009

Ms. Laura Yannayon Environmental Protection Agency Region IX Attn: Air-3
'I 75 Hawthorne Street San Francisco, CA 94105

. DearMs. Yannayon; 

## RECEIVED MAY 14 2009 Perm I**l~** ..... riICe Air-3 

# u.s. EPA. 

### Region 9

I express my sincere appreciation for your suggestions and guidance regarding the Minor PSD Permit Modification for the Mt. Poso Cogeneration Company facility. This letter is written per

# yoJ instructions to Dr. Ted OJth and Wayne Terry. Under separate cover you should have received two additional teports (for March and April) following the one you received for the month of Februabr, summarizing the biomass testing/emissions measurements for these months. During this time we have evaluated a number oftypes ofbiomass fuel, including shells (pistachid and almond) as well as small "one inch minus" agricultural wood waste, all with varying

### ~oisture content. I I In summary, to date, up to 30% by volume (20% by weight) biomass fuel has been cofired with the previously permitted coal/petroleum coke/tire-derived fuel blend offuel, with no discernable change (increase or decrease) in any**o~** the measured pollutants: CO (also a surrogate for VOCs), NOx, S02 and opacity (indicative ofparticulateslPM-10). As Dr. Outh discussed in your meeting, the reasons for this

### ~e as follows: The circulating fluidld bed boiler employs eJended residence time in the combustor zone to effect complete combustion, which ensJres that carbon monoxide and hydrocarbon levels are minimized, regardless ofthe fuel. Vte NOx emissions are "set" at roughly ten percent (10%) below the permitted level (58 ppm vs 65 ppm respectively). That is, when emissions ofNOx start to climb above 58 ppm, more ammonia (for the Thermal DeNOx reaction) is automatically introduced into ithe boiler. Likewise with the S02; when sulfur dioxide levels start to exceed the "set pqint" (below the permit limit), additional limestone is automatically injected. In

### thi~ manner, emissions can be maintained at similar levels for different fuels, and the results observed overthe lastthree months are notunexpected.

8302 Espresso Drive, Suite 130 Bakersfield, CA 93312 661/663-3155 I Fax: 661/663-3164Ms. Laura Yannayon Environmental Protection Agency Region IX May 12,2009 Page 

### 2

As Mr. Terry discussed with you in your meeting, we have been able to feed up to 30% by volume (20% by weight) biomass utilizing the existing fuel feed system. We anticipate increasing the feed up to approximately 30% (or more) by weight as plant personnel become accustomed to the intricacies ofhandling biomass. However, we are limited to the amount of biomass we can physically feed with the existing truck unloading system. At this time, we are only pennitted to burn "and/or biomass" with our fuel blend; we cannot make any physical modifications to the plant. (Note: an application to the San Joaquin Valley APCD for an authority to construct to make the modifications required to achieve a 100% biomass feed rate conveyers, truck dumpers, etc. has been submitted and is currently under review by the Air District.) Utilizing the explanations provided above, we are able to extrapolate that emissions at the 100% biomass feed rate would not 

### be significantly changed from the observed emission levels at 20% biomass. In closing, we do not expect a change 

### in emission levels from current emissions (within permit limits) under 

### a 100% biomass firing scenario. As Mr. Terry reiterated, we are amenable to accepting a 1400 ton per day limit on biomass in our PSD pennit. We appreciate your continued expeditious review of our PSD application and promise to respond immediately to any additional questions you may have, all with the goal of meeting the mid-July PSD modification approval date you suggested. Thank you 

### in advance for you assistance.

# ~YO~( 

# /**ROg~ed** Mt. Poso Cogeneration Company General Manager Title V Responsible Official

cc: Wayne TerryNice PresidentlMillenniumEnergy, LLC Dr. TedGuth William DicksonIPlant Manager/Mt. Poso Cogeneration Company

## -- 

## - -



# ... ... MT. POSO COGENERATION COM PAN Y
January 15,2009

Director, Air Division (Attn: Air-3) United States Environmental Protection Agency Region IX 75 Hawthorne Street San Francisco, CA 94105-3901 'Subject; Commencement ofTrail Bum Using Biomass as Fuel 

# RECEIVED JAN 2 3 REC'D Air Division, AIR

# -.3 U.S. EPA, REGION 9 

## .MH 2 3**~:\l;~**

I Ref: U.S. EPA Letter Dated January 9, 2009, PSD Permit SJ-86-09 (Amended January 9, 2009)

Dear Sirs, This letter is to inform you that Mt. Poso Cogeneration Company intends to commence test burning ofbiomass fuels, on January 19,2009, in accordante with PSD Permit SJ86-09 as amended on January 9, 2009. 

### I Mt. Poso Cogeneration Company will keep records ofall fuels burned and will sample and test per section IX.H. ofsubject permit. Data will also be compiled per this section and forwarded to your office on a monthly basis, unless otherwise directed, for review. Mt. Poso Cogeneration Company understands the maximum length ofthis test is 180 day, and intends to utilize this period to test bum on a

### continuo~s basis the biomass fuels for evaluation. Upon such time that adequate test data is gathered for your review, a request will be made to add biomass fuels to PSD Permit SJ**86~09** on a permanent basis.

PO. Box81256 Bakersfield, CA 93380 36157 Famoso Road, 93308 661/393-8891 Fax: 661/393-6865

### Yout cooperation in this matter is greatly appreciated and iffurther information is needed

### plea~e contact me by phone at (661) 393-8891 or email: bdickson@mtposo.org.
Sincerely,

/ William Dickson I**Plan~** Manager

I Mt.**~oso** Cogeneration Company

I Cc: Ghief, Stationary Resource Division <talifomia Air Resources Board

I**~.O.** Box 2815 Sacramento, CA 95812

I**~oger** Allred, President Millennium Energy rayne Terry, Vice President Millennium Energy

I

# M~PO$O CO<iENERA'1710N COM PAN Y

November 25, 2008

Ms. Laura Yannayon Environmental Protection Agency Region IX 75 Hawthorne Street San Francisco, CA 94105 

# RECEI\"'i=D**.:~: VI~**  

### DEC -3 2008 Air Division, AIR - U.S. EPA, REGION 9

Subject: Mt. Poso Cogeneration Company; Minor Modification to I PSD Permit No. SJ86-09; NSR4-4-j Dear Ms. Yannayon: I Thank you for the assistance and guidance you have**p~ovided** to Wayne Terry and ourpermitting consultant, Dr. Ted Guth. Per your direction, Mt. pos, Cogeneration Company (MPCC) will:

• Add biomass to the three currently allowed fuelS (coal and/or petroleum coke and tire derive fuel).

• Continue to employ Best Available Control Te hnology (see recent assessment perfoI1l1ed by the San Joaquin Valley Air pOllition Control District (SJVAPCD)).

• Agree to a reduction in the annual potential to emit (PTE) levels ofNOx, S02 and CO (rolling averages) to new limits based on the

### a~erage ofMPCC's 2004 and 2005 annual emission levels (see below).

• Agree to enforceable monthly recordkeeping t1 ensure rolling annual limits are met.

• Notify and obtain concurrence from Mr. Richard Edgehill at SJVAPCD ofMPCC's intent to agree to reduce PTE's for NOx, S02, kd CO in the PSD/Title V permit. A copy ofthe written request

### to SNAPCD will be prtided

### to you.

• Agree to conduct a six-month "trial bum" to cqn:firm that the proposed limits can be met with biomass fuel. MPCC agrees to share all findings with EPA. MPCC's desire is to commence this trial bum on or about Decembdr 15,2008.

8302 Espresso Drive, Suite 130 Bakersfield, CA 93312 661/663-3155 Fax: 661/663-3164Ms. Laura Yannayon Environmental Protection Agency Region 

### IX I Mt. Poso Cogeneration Company; Minor Modification to PSD PermitNo. SJ86-09; NSR4-4-8 November 25, 2008 I**P~e2**
BACT for NOx is Selective Non- Catalytic Reduction

# ~ammonia injection). BACT for S02 is sorbent (limestone) injection. BACT for CO is the circ1ulating fluidized bed combustion process and natural gas as auxiliary fuel. I Current PTE's for NOx, S02 and CO are 513,336Ib/year, 255,281Ib/year, and 440,628 lb/year respectively. The annual emitted levels for 2004 and 2r05 are shown below: Year 2004 2005 Average I NOx 387,278 380,890 384,084 S02 125,576 134,455 130,016 CO 173,298 171,326 172,312 To have the desired.action

- addition ofbiomass as a

# ~el - MPCC agrees to decrease its current PTE's to levels equivalent to the averages ofNOx and $02 from 2004 and 2005 PLUS 39.5 tons

\ (79,000 lbs) and for CO to the average from 2004 and 2005 PLUS 99.5 tons (199,000 lbs). Thus the newly proposed PTE levels are as follows; I NOx 384,084 + 79,000 

### = 463,084 pounds{year S02 130,016 + 79,000 

## = 209,016 pounds{year CO 172,312 

### + 199,000 

### = 371,312 poundsf year It is Mt. Poso's understanding that by agreeing to these Ilimits, this request can be processed as a minor modification. As such, major New Source Review is not triggered and no emissions modeling orpublic notice is required. I Please refer any questions you have regarding this requFst during your review to Dr. Ted Guth at 619-987-1111. Mt. Poso thanks you in advance for the expeditious review ofthis request, as well as your continued support and guidance. 

# c Roger . Allred Mt. P so Cogeneration Company General Manager Title V Responsible**Officia~** cc: R. Wayne TerryN.P. Millennium Energy, LLC Dr. Ted GuthlPermit Consultant 

### Richard Edgehill/SanJoaquin Valley AirPollution pontrol District enclosures