May17,2010CONSTELLATIONOperatingServicesOperatorsfor:RioBravoPosoP.O.Box81027Bakersfield,CA93380661393-2278661393-2702FaxDeliveryAddress:16608PortervilleHwy.Bakersfield,Ca93308Mr.GerardoRiosEnvironmentalProtectionAgencyRegionIX75HawthorneStreetSanFrancisco,CA94105Subject:RioBravoPoso:MinorModjflcationto(PSDPermitNo.NSR4-4-8;SJ85-06)DearMr.Rios:RioBravoPoso(Poso)seekspermissiontocombustbiomass,inadditiontothepermittedfuels(coal,petroleumcoke,andtire-derivedfuel).Thebiomasswillbereceivedandfedintotheboilerusingexistingequipmentcurrentlyemployedtofeedfuel;nonewequipmentorphysicalmodificationtojyexistingequipmentisbeingproposed.Hencenoanticipatedincreaseinemissions,includingfugitiveemissions,willresultfromthispermitmodification.RioBravoPoso:•Proposestoaddbiomasstothethreecurrentlyallowedfuels(petroleumcokeand/orcoalandupto20%byweightoftirederivedfuel).Inaddition,thefuelthroughputlimitisbeingmodifiedtobringitintoalignmentwiththeTitleVpermitwording.ThefollowingchangestoPermitConditionIX.H.arerequested:OriginalWording:Pososhallnotconsumemorethan34,855pounds(onadrybasis)perhourofsolidfuelintheproposedcogenerationunit.Thefuelshallbecomprisedofablendofpetroleumcokeand/orcoalandupto20%byweightoftirederivedfuelandshallhaveamaximumsulfurcontentof4.0percentbyweightasmeasuredbycurrentASTMmethods.Changeto:Pososhallnotconsumemorethan836,520pounds(onadrybasis)perdayona30-dayrollingaverageofsolidfuelintheproposedcogenerationunit.Thefuelshallbecomprisedofablendofpetroleumcokeand/orcoalandupto20%byweightoftirederivedfuelandshallhaveamaximumsulfurcontentof4.0percentbyweightasmeasuredbycurrentASTMmethods.Inaddition,two(2)poundsofbiomassfuelofnomorethan4.0%byweightsulfurmaybesubstitutedforone(1)poundofcoalorcokefuel.Mr. Gerardo Rios May 17, 2010 Page

2 Justification: The change from 34,855 pounds per hour
to 836,520 pounds per day
is to align the PSD pennit with the conditions
that are in the Title

V permit. Please note that the fuel limit number

in the Title

V permit contains

a typographical
error that
is also being changed. The Title

V fuel limit currently reads 835,520 pounds per day instead
of the correct 836,520 pounds per day (calculated

by multiplying 34,855 pounds per hour times
24 hours per day). The reason for the request

to put the 30-day rolling average into the permit

is: in the 1995 revision

to the PSD

it appears that the original averaging period
of “on

a monthly basis” was inadvertently

left out. We understand
that the concept

of using block averages
has generally been replaced with using rolling averages
and we believe that

a 30-day rolling average captures
the intent
of the original monthly average (block average) requirement and meets EPA’s recent guidance. The request

to substitute
two (2) pounds

of biomass fuel for one (1) pound
of coal or coke reflects
the relative difference

in higher heating values
of the fuels. • Will continue

to employ Best Available Control Technology

(see recent assessment performed

by the San Joaquin Valley Air Pollution Control District (SJVAPCD)) (refer to attached table). • Will conduct

a six-month “trial bum”

to confirm that the emission limits can be met with biomass fuel. Poso agrees

to share all information
with EPA. Poso’s desire

is to commence
this trial bum
in the third quarter

of 2010. BACT for NOx

is Selective Non-Catalytic Reduction (ammonia injection currently used). BACT for S02

is sorbent injection (limestone injection currently used). BACT for CO
is the circulating fluidized
bed combustion process (currently used). The current permitted emission limits and the actual emissions from the annual emission inventory

are presented below. Actual Emissions YEAR

2005

2006 Average

Limit NO (tons/year)
142.38
140.82
141.60
170.38 SO 2 (tons/year)

50.96

50.43

50.70

61.32 CO (tons/year)

74.77

85.08

79.93 460.34 PM 10 (tons/year)

9.02

8.51

8.76

18.88 Note that the S02, annual emission average

is within
40 tons per year of current limit. The NOx annual emission average

is within

25 tons per year of current limit. The VOC annual emission average

is within

25 tons per year of current limit. Likewise

the PM1O annual emission averageMr. Gerardo Rios May 17, 2010 Page

3 is within

15 tons per year of the current limit. Therefore,
this request

is not

a major modification.

Hourly Permit Limits Constituent

NO (lbs/br)

SO 2 (lbs/br)

CO (lbs/br) Limit

38.9

14.0

105.1 The emissions from the facility
are not expected

to change
on an hourly basis. It is Poso’s understanding

that by being below the significant emissions increase thresholds

for

a major modification,

this request can be processed

as
a minor modification. Please refer any questions
you have regarding
this request during your review

to Dr. Ted Guth

at (619) 987-1111. Poso thanks you in advance
for the expeditious review
of this request,

as well as your continued support and guidance. Sincerely,- n Bill Rossiter Vice President Title

V Responsible Official cc: Maggie Estrada, Constellation Energy Ted Guth, Rio Bravo Facility filesSan Joaquin Vaftey Unified
Air Pollution Control District Best Available Control Technology (BACT) Guideline 1.3.2k Lest Update: 1112112002 Fluldized Bubbling Bed Combustor (biomass-firod) Pollutant Achieved

In Pracilue

or Technologically

Alternate Susie conialnad

In the SiP Feasible

Egu!pment- Co

183 ppmvd, nalura! gee auk Wary fuel NOx
0.10 IhIMMBtu, ammonia

lluldIiedOfrcuiatlng Injection and natural gas

bed combustor wVNH3 aLl)dllary fuel

lnjaollon PMIO 0.O45lbIMM8tu, baghouse or ESP, and natural gas auNflialy fuel SOx

23 ppmvd Imestone Injeotlon and natural gas audllaiyfueI VOC

0,02 IWMMBIu, nelural gas auxilialy fuel • BACT

Ia the most stringent control technique

for the emissionS
unit and class

a! source. Contra! techniques
that are not achieved

In practice or contained

In a’a state Implements

Von plan must be cost eIThclIve

as well se feasible. Economlo analysis

to demonstrate
coat offecllvenosa

is requited

(or sit datermlneUons

that are not achieved

In practice orconWned

In en EPA approved State lmplemenlallozr

Plan. Thla

is a Summary Page for thie Class
of Souroe Permit SpeolrIo SACT Determinations

on Next Page(s)CONSTELLATION

c smn Oneratint Services

P.O. Box 81077 I.’

Bakersfield,

CA 93380 661 792-3048 661 792-2812
Fax Delivery Address: 11258 Porterville Hwy. May 17, 2010

Bakersfield,

Ca 93308 Mr. Gerardo Rios Environmental Protection Agency Region
IX 75 Hawthorne Street San Francisco,

CA 94105 Subject:

Rio Bravo Jasmin: Minor Mod jfication

to (PSD Permit No. NSR 4-4-8; SJ 85-0
7) Dear Mr. Rios: Rio Bravo Jasmin (Jasmin) seeks permission

to combust biomass,

in addition

to the permitted fuels (coal, petroleum coke, and tire-derived fuel). The biomass will be received
and fed into the boiler using existing equipment currently employed

to feed fuel; no new equipment

or physical modification

to y existing equipment

is being proposed. Hence
no anticipated increase

in emissions, including fugitive emissions,
will result from this permit modification. Rio Bravo Jasmin: • Proposes

to add biomass

to the three currently allowed fuels (petroleum coke andlor coal and up to 20% by weight
of tire derived fuel).

In addition,
the fuel throughput limit is being modified

to bring

it into alignment with the Title

V permit wording.
The following changes

to Permit Condition IX.H. are requested: Original Wording: Jasmin shall not consume more than 34,855 pounds (on

a dry basis) per hour of solid fuel in the proposed cogeneration

unit. The fuel shall be comprised

of
a blend
of petroleum coke and/or coal and up to 20% by weight

of tire derived fuel and shall have

a maximum sulfur content

of 4.0 percent

by weight

as measured

by current ASTM methods. Change

to: Jasmin shall not consume more than 836,520 pounds (on

a dry basis) per day on
a 30-day rolling average

of solid fuel in the proposed cogeneration

unit. The fuel shall be comprised

of
a blend of petroleum coke and/or coal and up to 20% by weight
of tire derived fuel and shall have

a maximum sulfur content

of 4.0 percent

by weight

as measured

by current ASTM methods.

In addition, two (2) pounds

of biomass fuel of no more than 4.0% by weight sulfur maybe substituted

for one (1) pound
of coal or coke fuel.Mr.GerardoRiosMay17,2010Page2Justification:Thechangefrom34,855poundsperhourto836,520poundsperdayistoalignthePSDpermitwiththeconditionsthatareintheTitleVpermit.PleasenotethatthefuellimitnumberintheTitleVpermitcontainsatypographicalerrorthatisalsobeingchanged.TheTitleVfuellimitcurrentlyreads835,520poundsperdayinsteadofthecorrect836,520poundsperday(calculatedbymultiplying34,855poundsperhourtimes24hoursperday).Thereasonfortherequesttoputthe30-dayrollingaverageintothepermitis:inthe1995revisiontothePSDitappearsthattheoriginalaveragingperiodof“onamonthlybasis”wasinadvertentlyleftout.Weunderstandthattheconceptofusingblockaverageshasgenerallybeenreplacedwithusingrollingaveragesandwebelievethata30-dayrollingaveragecapturestheintentoftheoriginalmonthlyaverage(blockaverage)requirementandmeetsEPA’srecentguidance.Therequesttosubstitutetwo(2)poundsofbiomassfuelforone(1)poundofcoalorcokereflectstherelativedifferenceinhigherheatingvaluesofthefuels.•WillcontinuetoemployBestAvailableControlTechnology(seerecentassessmentperformedbytheSanJoaquinValleyAirPollutionControlDistrict(SJVAPCD))(refertoattachedtable).•Willconductasix-month“trialburn”toconfirmthattheemissionlimitscanbemetwithbiomassfuel.JasminagreestoshareallinformationwithEPA.Jasmin’sdesireistocommencethistrialburninthethirdquarterof2010.BACTforNOxisSelectiveNon-CatalyticReduction(ammoniainjectioncurrentlyused).BACTforS02issorbentinjection(limestoneinjectioncurrentlyused).BACTforCOisthecirculatingfluidizedbedcombustionprocess(currentlyused).Thecurrentpermittedemissionlimitsandtheactualemissionsfromtheannualemissioninventoryarepresentedbelow.ActualEmissionsYEAR20052006AverageLimitNO(tons/year)145.56134.98140.27170.38SO2(tons/year)52.0446.9949.5261.32CO(tons/year)83.7880.7482.26460.34PM10(tons/year)7.548.768.1518.88NotethattheS02,annualemissionaverageiswithin40tonsperyearofcurrentlimit.TheNOxannualemissionaverageiswithin25tonsperyearofcurrentlimit.TheVOCannualemissionaverageiswithin25tonsperyearofcurrentlimit.LikewisethePM10annualemissionaverageMr. Gerardo Rios May 17, 2010 Page

3 is within

15 tons per year of the current limit. Therefore,
this request

is not

a major modification.

Hourly Permit Limits Constituent

NO (lbs/hi)

SO 2 (lbs/br)

CO (lbs/lw) Limit

38.9

14.0

105.1 The emissions from the facility
are not expected

to change

on an hourly basis. It is Jasmin’

s understanding

that by being below the significant emissions increase thresholds

for a major modification,

this request can be processed

as
a minor modification. Please refer any questions
you have regarding
this request during your review

to Dr. Ted Guth

at (619) 987-1111. Jasmin thanks you in advance
for the expeditious review
of this request,

as well as your continued support and guidance. Sincerely, / _L-

L

i j Bill Rossiter Vice President Title

V Responsible Official cc: Maggie Estrada, Constellation Energy Ted Guth, Rio Bravo Facility filesSan Joaquin Valley Unified
Air Pollution Control District Best Available Control Teohnoloy (BACT) Guideline 1.3,2k Last Updsiet 1112t!200a Pluldized Bubblln Bed Conibuator (blomass-fired) • SACTIs
the moat stringent control technique

(or the emissionS
udi and clan
of source. Cenifol techniques
thet are no! achieved

In practice )
or contained

In se state Implenientatlon

plsn must be coal ef!eclWe

as wel( as (easibte, Econmio analysis

to demonstrate
cost offadllvaneas

Is requited
(or alt deterrnlnsllona

that are not achieved

Iii practice

or contained

In art EPA eppioved SIde tmplemeniaUon

Plan. ‘This

is a Summary Page for this Glass
or 8ource Pennit Specific SACr Determinellons

on Next Page(s) Pollutant Achieved

In Practice

or ‘rechnoloutcally

Alternate Seeto contained

In the SIP Feasible

£gulpnient- 00

183 ppm, natural gsa nuxulary fuel NOx

0.10 IbIMMBIu, ammonia

ItuldIzed circulating Injection and natwai gas

bed oombustor W’NH3 awcliiary fuel

injection PMI

0 0.045 lbIMMBtu, baghouse or ESP, and natural gas awdilary fuel BOx

23 ppmv4 Lmestone Injootlon and natural gas andliaty1ueI VOC

0,02 )b/MM9Iu 1 natural gas awditaly fuel