0UNITEDSTATESENVIRONMENTALPROTECTIONAGENCYREGIONIX475HawthorneStreetSanFrancisco,CA94105-3901October11,2012VIAE-MAILANDU.S.MAILGaryChandlerPresidentPioPicoEnergyCenter,LLCP.O.Box955922542SingletreeLaneSouthJordan,Utah84095Re:FinalBiologicalOpinionforthePSDPermitApplicationfortheProposedPioPicoEnergyCenter(PSDPermitApplicationNo.SD11-01)DearMr.Chandler:ThankyoufortheemailtransmittaldatedOctober1,2012fromMelissaFoster,counselforPioPicoEnergyCenter,LLC(“Applicant”),attachingadraftletterconcerningthebiologicalopinion(“BO”)issuedbytheU.S.FishandWildlifeService(“FWS”or“Service”)onSeptember28,2012forthePioPicoEnergyCenter(“Project”).TheSeptember28,2012BOwasissuedattheconclusionofformalconsultationbetweenEPAandFWSinaccordancewithSection7ofthefederalEndangeredSpeciesAct(“ESA”).ThisconsultationwasconductedinconjunctionwithEPA’sCleanAirAct(“CAA”)PreventionofSignificantDeterioration(“PSD”)permitdecision-makingactionfortheproposedProject.ThisletterwillclarifytheremainingfewstepsthatwehavedeterminedarenecessaryandappropriatetoensurethatEPA’sPSDpermittingdecisionfortheproposedProjectpursuantto40C.F.R.§52.21isconsistentwiththerequirementsoftheESAandconsistentwiththeBO.TheBOprovidestheFWS’opinionontheProject’seffectsonanumberfederally-listedendangeredandthreatenedspecies.TheBOaddressesthepotentialeffectsoftheproposedProjectonthefederallyendangeredQuinocheckerspotbutterfly(Euphydiyasedithaquino;Quino),federallythreatenedcoastalCaliforniagnatcatcher(Polioptilacalfornicacalfornica;gnatcatcher)andOtaytarplant(Deinandra[Hemizonia]conjugens)andtheirrespectivedesignatedcriticalhabitats,inaccordancewithsection7oftheESA.ThefederallyendangeredSanDiegofairyshrimp(Branchinectasandiegonensis)anditsdesignatedcriticalhabitatandRiversidefairyshrimp(Sireptocephaluswoottoni)anditsproposedcriticalhabitatoccurwithintheactionareaoftheProject.However,theServicehasdeterminedthatimpactsoftheproposedProjectarenotlikelytoadverselyaffectthesespeciesortheirdesignatedandproposedcriticalhabitat.AfterreviewingthecurrentstatusoftheQuino,gnatcatcher,andOtaytarplant,theenvironmentalbaselinefortheactionarea,theeffectsoftheproposedaction,andthecumulativeeffects,theService’sBOconcludesthattheproposedProjectisnotlikelytojeopardizethecontinuedexistenceoftheQuino,gnatcatcher,orOtaytarplantandisnotlikelytoresultinthedestructionoradversemodificationofdesignatedcriticalhabitatforanyofthesespecies.PnnredonRecycledPaperInaddition,theBOconcludesthattheproposedProjectwillresultinincidentaltakeofthequinoandgnatcatcher,andprovidesanincidentaltakestatementtoauthorizethatincidentaltakeprovidedcertainspecifiedconditionsaremet.horderfortheexemptionforincidentaltaketoapply,theBOimposesspecifiedreasonableandprudentmeasures(“RPMs”)tominimizeincidentaltake,andaterniandconditiontoimplementthesemeasures.AsoutlinedintheBO,theApplicantisresponsiblefordirectlyimplementingtheseRPMsandtermandcondition.ConsistentwiththerequirementsoftheBOandwithEPApractice,todocumentthattheApplicantagreestoimplementtheRPMsandtermsandconditionsincludedintheBO,andtoclarifythatEPA’spermitdecisionisbasedinpartontheApplicant’srepresentationsthatitwill,infact,implementtheserequirements,werequestthattheApplicantupdateitsPSDpermitapplicationtostatethat,aspartoftheProject,itwillimplementallRPMsandtermsandconditionscontainedintheBO.Thedraftletterattachedtoyourcounsel’sOctober1,2012emailindicatesthattheletterisapermitapplicationaddendumandstatestheApplicant’sintenttocomplywiththetermsoftheBO.Webelievethatthisdraftletterwillsuffice.ThedraftletteralsosuggeststhatEPAmodifytheProject’sPSDpermittermstoincorporatecertainoftheBO’srequirements;webelievethatsuchaPSDpermitrequirementisnotnecessarygiventhatourpermitandapplicableregulationsrequiretheApplicanttoconstructandoperatethefacilityinaccordancewiththepermitapplication,whichwouldincludethispermitapplicationaddendum.Also,toavoidthepotentialforhavingyourfinalapplicationaddendumlettermisdirectedinourmailroutingsystem,pleaseaddressthelettertomeastheChiefoftheRegion9“AirPermitsOffice”.PleasenotethatneitherEPA’srequestfor,northeApplicant’ssubmittalof,thisadditionaldocumentationconcerningtheApplicant’sESAcommitmentsaffectsthecompletenessstatusofthePSDpermitapplicationfortheProject,norwoulditnecessitatetheneedforadditionalpublicnoticeandcomment.Weappreciateyourcooperationandassistanceinthismatter.Ifyouhaveanyquestions,pleasecontactRogerKohnofmystaffat(415)972-3973,orhaveyourcounselcontactJulieWalters,withourOfficeofRegionalCounsel,at(415)972-3892.Sincerely,//j’;AGerardoC.RiosChief,AirPermitsOfficecc(viae-mailandU.S.mail):JimA.Bartel,FWSDavidJenkins,PPECMelissaA.Foster,Esq.,StoelRivesLLPSteveHill,SierraResearch