* * * SUPPLEMENTAL PUBLIC NOTICE * * * 

AVENAL ENERGY PROJECT 

ANNOUNCEMENT OF PUBLIC HEARING AND REQUEST FOR PUBLIC COMMENT 

ON PROPOSED ACTION AND SUPPLEMENTAL STATEMENT OF BASIS RELATING TO A 

CLEAN AIR ACT PREVENTION OF SIGNIFICANT DETERIORATION PERMIT 

FOR THE EMISSION OF AIR POLLUTANTS 

PERMIT APPLICATION NO. SJ 08-01 

The United States Environmental Protection Agency (EPA) provides notice of, and requests public 

comment on, a proposed action and Supplemental Statement of Basis relating to the Prevention of 

Significant Deterioration (PSD) permit application for the Avenal Energy Project (Project). In 2009, 

EPA issued a proposed PSD permit for the Project to Avenal Power Center, LLC (APC), pursuant to 

federal Clean Air Act (CAA) PSD requirements and related PSD regulations (40 CFR 52.21), which 

would authorize the construction and operation of a 600 MW (net) electric generating facility. APC is 

located at 500 Dallas Street, Level 31, Houston, TX 77002. 

The Project would be located in Kings County, California, and consists of two GE 7FA combustion 

turbine generators, two heat recovery steam generators, one steam turbine generator, and associated 

equipment. The proposed location for the Project constitutes the majority of the northeast quarter of 

Section 19, Township 21 South, Range 18 East, Mt. Diablo Base and Meridian. The Kings County 

Assessor’s Parcel Number (APN) for this location is 36-170-035. The geographic coordinates for the 

proposed project are approximately Latitude 36.088394° N and Longitude 120.061141° W. The 

proposed location is currently in agricultural production, is zoned industrial by the City of Avenal and is 

owned by the applicant. The City of Avenal has informed the EPA that the unofficial address for this 

location’s APN is 33119 Avenal Cutoff Road, Avenal, California 93204. 

On June 16, 2009, EPA issued for public comment a proposed permit for the Project, which would grant 

conditional approval, in accordance with the PSD regulations, to APC to construct and operate the 

facility, along with a statement of basis and ambient air quality impact report describing the basis for the 

permit conditions and other related information. The proposed PSD permit would require the use of 

Best Available Control Technology to limit emissions of carbon monoxide (CO), oxides of nitrogen 

(NOx), particulate matter (PM), and particulate matter less than 10 micrometers in diameter (PM10), to 

the greatest extent feasible. At the time EPA proposed the PSD permit for the Project, EPA found that 

air pollution emissions from the Project would not cause or contribute to violations of any of the 

National Ambient Air Quality Standards (NAAQS) applicable at that time for the attainment pollutants 

regulated under the PSD permit The emissions of other air pollutants from the proposed project, 

including the pollutants for which the area is not meeting the NAAQS (and precursors that lead to the 

formation of such pollutants) are regulated by the San Joaquin Valley Air Pollution Control District 

(District), which implements the Nonattainment New Source Review permitting program for this area 

and has issued the necessary permit. 

EPA provided public notices requesting public comment on the proposed permit for the Project on June 

16, 2009, August 27, 2009 through August 29, 2009, and September 11, 2009. The August and 

September 2009 notices announced that EPA would extend the public comment period and hold a public 

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information meeting and two public hearings in conjunction with its proposed PSD permit for the 

Project. The public information meeting and two public hearings were held as scheduled, and the public 

comment period for the proposed permit closed on October 15, 2009. 

Following the close of the public comment period for the Project, on February 9, 2010, EPA published a 

final rule establishing a primary NAAQS for nitrogen dioxide (NO2) based on a 1-hour averaging time 

(1-hour NO2 NAAQS), which became effective on April 12, 2010. 75 Fed. Reg. 6474 (Feb. 9, 2010). 

On April 1, 2010, EPA issued a memorandum explaining that permits issued by EPA on or after the 

April 12, 2010 effective date must be supported by a demonstration that the source will not cause or 

contribute to a violation of the hourly NO2 standard. See Memorandum from Stephen D. Page, EPA 

Office of Air Quality Planning and Standards, Applicability of the Federal Prevention of Significant 

Deterioration Permit Requirements to New and Revised National Ambient Air Quality Standards (Apr. 

1, 2010). On June 22, 2010, EPA published a final rule establishing a primary NAAQS for sulfur 

dioxide (SO2) based on a 1-hour averaging time, which became effective on August 23, 2010. 75 Fed. 

Reg. 35,520 (Jun. 22, 2010). On May 7, 2010, EPA issued a rule that establishes limitation on 

greenhouse gas emissions from automobiles. 75 Fed. Reg. 25,324. As a result of this action, EPA 

interprets the Clean Air Act and applicable regulations to require that PSD permits issued after January 

2, 2011 contain limitations on greenhouse gas emissions. 75 Fed. Reg. 17,004 (April 2, 2010). 

EPA has found that applicants seeking PSD permits to construct stationary sources of air pollution have 

experienced unforeseen challenges with the preparation and review of information to predict the impact 

of proposed sources on hourly NO2 concentrations. As a result of concerns about these challenges 

expressed by permit applicants, EPA began a policy review to determine whether additional action by 

EPA was necessary to facilitate the preparation of information to predict hourly NO2 concentrations and 

to enable EPA and other permitting authorities to complete action on pending PSD permit applications 

in a timely manner. 

As part of this policy review, and in light of EPA’s statutory obligation under Clean Air Act section 

165(c) to grant or deny a complete PSD permit application within one year, and other circumstances 

present in this case, EPA has determined that it is appropriate to grandfather the PSD permit application 

from APC from the requirement to demonstrate that the proposed facility will not cause or contribute to 

a violation of the hourly NO2 standard. Accordingly, EPA proposes to approve APC’s PSD permit 

application for the Project without requiring a demonstration that the source will not cause or contribute 

to a violation of the hourly NO2 standard. In addition, EPA believes the factors that justify such an 

approach for the hourly NO2 standard also provide a basis not to subject this permit application to 

additional permitting requirements that have taken effect following the promulgation of the hourly NO2 

NAAQS. Therefore, EPA also will not require the source to meet emissions limitations for greenhouse 

gases or to demonstrate that it will not cause or contribute to a violation of the NAAQS for hourly 

concentrations of sulfur dioxide. 

This determination represents a change in the position EPA has taken in this matter and in previous 

interpretive statements issued by EPA. Because this change in position requires that EPA modify or 

narrow previous interpretations of EPA regulations and the position EPA has taken in public statements 

regarding this permit, the Agency believes it is necessary and appropriate to provide the public with an 

opportunity to comment on this proposed action before the Agency issues a final decision on the 

pending permit application that would grandfather the Project from these additional requirements. 

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EPA has also determined that it is appropriate to provide a detailed Environmental Justice Analysis 

regarding its proposed PSD permit action for the Project for public comment. 

This supplemental public notice requests public comment on the following three issues: (1) EPA’s 

proposal to approve APC’s PSD permit application for the Project without requiring a demonstration 

that this source will not cause or contribute to a violation of the hourly NO2 standard; (2) EPA’s 

proposal not to require this source to meet emissions limitations for greenhouse gases or to demonstrate 

that the proposed source will not cause or contribute to a violation of the NAAQS for hourly 

concentrations of sulfur dioxide; and (3) EPA’s Environmental Justice Analysis for its proposed PSD 

permit action for the Project. EPA is now taking comment solely on these three matters. EPA 

previously provided opportunity for public comment on all other aspects of the Project’s and the 

proposed PSD permit’s compliance with PSD requirements, and a written response to those comments 

will be provided with EPA’s final permit decision for the Project. EPA is not reopening the comment 

period generally or accepting additional comment at this time on any issues other than the three matters 

described immediately above. 

EPA has prepared a Supplemental Statement of Basis describing in more detail the basis for EPA’s 

proposed decision to grandfather the Project from demonstrating compliance with these additional 

requirements, and incorporating EPA’s Environmental Justice Analysis for its proposed PSD permit 

action for the Project. This Supplemental Statement of Basis is available on the EPA Region 9 website 

at http://www.epa.gov/region9/air/permit/r9-permits-issued.html. 

EPA has determined that it is appropriate to hold a Third Public Hearing relating to the PSD application 

for the Project to provide the public an opportunity to provide comment on the actions that are the 

subject of this notice and EPA’s Supplemental Statement of Basis. At this public hearing, any person 

may provide written or oral comments, in English or Spanish, and data pertaining to (1) EPA’s proposal 

to approve APC’s PSD permit application for the Project without requiring a demonstration that this 

source will not cause or contribute to a violation of the hourly NO2 standard; (2) EPA’s proposal not to 

require this source to meet emissions limitations for greenhouse gases or to demonstrate that the 

proposed source will not cause or contribute to a violation of the NAAQS for hourly concentrations of 

sulfur dioxide; and (3) EPA’s Environmental Justice Analysis for its proposed PSD permit action for the 

Project. The date, time and location of the Third Public Hearing are as follows: 

Date: April 12, 2011 

Time: 7:00 – 10:00 pm 

Location: The Avenal Theater 

 233 E. King Street 

 Avenal, California 93204 

English-Spanish simultaneous translation services will be provided at this Third Public Hearing. 

If you require a reasonable accommodation, by March 29, 2011 please contact Terisa Williams, EPA 

Region 9 Reasonable Accommodations Coordinator, at (415) 972-3829, or Williams.Terisa@epa.gov. 

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All comments on EPA’s tentative determination to deny the PSD permit application for the Project must 

be received by email or postmarked by April 12, 2011. Comments must be sent or delivered in writing 

to Shirley Rivera at the postal or email address shown below. Comments should focus on the three 

issues listed above. 

All information submitted by the applicant is available as part of the administrative record. EPA’s 

Supplemental Statement of Basis and other previous background documents such as the proposed PSD 

permit, statement of basis and ambient air quality impact report, permit application and other supporting 

information are available on the EPA Region 9 website at http://www.epa.gov/region9/air/permit/r9-

permits-issued.html. The administrative record may also be viewed in person, Monday through Friday 

from 9:00 AM to 4:00 PM, at the EPA Region 9 address below. Due to building security procedures, 

please call to arrange a visit 24 hours in advance. Hard copies of the administrative record can be mailed 

to individuals upon request in accordance with Freedom of Information Act requirements. EPA’s Office 

of Air and Radiation (Ariel Rios Building, 1200 Pennsylvania Ave. NW, Washington, DC 20460) is also 

engaged in processing this permit action. 

Any written comments must be received (if sent by e-mail) or postmarked (if sent by U.S. mail) on or 

before April 12, 2011 at the following addresses: 

E-mail: R9airpermits@epa.gov 

 U.S. Mail: Shirley Rivera (AIR-3) 

 U.S. EPA Region 9 

 75 Hawthorne Street 

 San Francisco, CA 94105-3901 

 Phone: (415) 972-3966 

EPA’s Supplemental Statement of Basis is also available to review at the following locations: San 

Joaquin Valley Air Pollution Control District, 1990 E. Gettysburg Ave., Fresno, CA 93726, (559) 230-

6000; Kings County Library, Hanford Branch (Main), 401 N. Douty Street, Hanford, CA 93230, (559) 

582-0261; Kings County Library, Avenal Branch, 501 East King Street, Avenal, CA 93204, (559) 386-

5741; and Kings County Library, Kettleman City Branch, 104 Becky Pease Street, Kettleman City, CA 

93239, (559) 386-9804. 

All comments that are received will be included in the public docket without change and will be 

available to the public, including any personal information provided, unless the comment includes 

Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. 

Information that you consider CBI or otherwise protected should be clearly identified as such and should 

not be submitted through e-mail. If you send e-mail directly to the EPA, your e-mail address will be 

automatically captured and included as part of the public comment. Please note that an e-mail or postal 

address must be provided with your comments if you wish to receive direct notification of EPA’s final 

decision regarding the permit and responses to comments submitted during the public comment period. 

EPA will consider all written and oral comments submitted during the public comment period before 

taking final action on the PSD permit application and will send notice of the final decision to each 

person who submitted comments and contact information during the public comment period or 

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requested notice of the final permit decision. EPA will respond to all substantive comments in a 

document accompanying the final permit decision and will make the Public Hearing proceedings 

available to the public. 

The final decision will become effective 30 days from the date of issuance unless: 

1. A later effective date is specified in the decision; or 

2. The decision is appealed to the Environmental Appeals Board pursuant to 40 CFR 124.19 (any 

person who submits written comments on the proposed permit decision or who participates in a 

Public Hearing may petition the Environmental Appeals Board to review any part of the permit 

decision within 30 days after the decision has been issued. Any person who failed to file 

comments and failed to participate in the public hearing on the proposed permit decision may 

petition for review by the Environmental Appeals Board only those parts of the final permit 

decision which are different than the proposed permit decision); or 

3. There are no comments requesting a change to the proposed permit decision, in which case the 

final decision shall become effective immediately upon issuance. 

If EPA’s current proposed permit decision becomes final, and there is no appeal, the proceedings will be 

concluded. 

If you have questions, please contact Shirley Rivera at (415) 972-3966 or email at 

R9airpermits@epa.gov. If you would like to be added to our mailing list to receive future information 

about this permit or other PSD permits issued by EPA Region 9, please contact Shirley Rivera at (415) 

972-3966 or email at R9airpermits@epa.gov, or visit EPA Region 9's website at 

http://www.epa.gov/region09/air/permit/psd-public-guidelines.html. 

Please bring the foregoing notice to the attention of all persons who would be interested in this matter.