Sierra Pacific Industries (SAC 12

- 01)

Proposed PSD Permit September 2012 

### PREVENTION OF SIGNIFICANT DETERIORATION PERMIT

PROPOSED PURSUANT TO THE REQUIREMENTS AT 40 CFR § 52.21

U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION IX

PSD PERMIT NUMBER: SAC 12

- 01

PERMITTEE: Sierra Pacific Industries

P.O. Box 496028 Redding, CA 96049

- 6028

FACILITY NAME: Sierra Pacific Industries

- Anderson

FACILITY LOCATION: 19758 Riverside Avenue Anderson, California 96007

Pursuant to the provisions of the Clean Air Act (CAA), Subchapter I, Part C (42 U.S.C. Section
7470, et. seq. ), and the Code of Federal Regulations (CFR) Title 40, Section 52.21, the United States Environmental Protection Agency Region 9 (EPA) is issuing a Prevention of Significant

Deterioration (PSD) air quality permit to Sierra Pacific Industries ( SPI ). This Permit applies to

the approval to construct and operate a new stoker boiler capable of generating 31 MW of gross electrical output from the combusti on of clean cellulosic biomass

, and related auxiliary equipment

.

SPI is authorized to construct and operate the 31 MW cogeneration unit at SPI

- Anderson as described herein, in accordance with the permit application (and plans submitted with the permit

app lication), the federal PSD regulations at 40 CFR § 52.21, and other terms and conditions set forth in this PSD Permit. Failure to comply with any condition or term set forth in this PSD Permit may be subject to enforcement action pursuant to Section 113 o f the Clean Air Act. This

PSD Permit does not relieve SPI from the obligation to comply with applicable federal, state, and Shasta County Air Quality Management District (District) air pollution control rules and regulations.

This PSD Permit becomes effe ctive on the <date of issuance pursuant to 40 CFR ' 124.15(b)(3)>

.

Deborah Jordon Date Director, Air Division1 of 17

Sierra Pacific Industries (SAC 12

- 01) Proposed PSD Permit September 2012

SIERRA PACIFIC INDUSTRIES

- ANDERSON (S AC 12

- 01)

PREVENTION OF SIGNIFICANT DETERIORATION PERMIT

PERMIT CONDITIONS

PROJECT DESCRIPTION

Sierra Pacific Industries , Inc. (SPI) has applied for the approval to construct and operate a new

stoker boiler capable of generating 31 MW of gross electrical output from the combustion of

clean cellulosic biomass

, and related auxiliary equipment

. The original Prevention of Significant Deterioration ( PSD ) p ermit for this lumber manufacturing facility was issued in 1994 by the Shasta County Air Quality Management District (Distr ict) . The site currently contains a wood

fired boiler cogeneration unit with associated air pollution control equipment and conveyance systems that produce steam to dry lumber in existing kilns. On March 3, 2003

, USEPA revoked

and rescinded the District ’s authority to issue and modify federal PSD permits for new and modified major sources of attainment pollutants in Shasta County . Therefore, EPA is proposing

the PSD permit for this additional boiler to incorporate the proposed facility modifications. The

PS D permit previously issued by the District to SPI is still in effect and applies to existing equipment at the SPI

- Anderson site.

Fuel for the new stoker boiler will be generated on site and received from other fuel sources

, mainly other SPI facilities, to produce roughly 250,000 pounds per hour of steam. This steam will be used to dry lumber in existing kilns for the lumber operation, as well as feed a turbine that will drive a generator to produce electricity for use on site or for sale to the grid. A clo sed

loop two

- cell cooling tower will be used to dispose of waste heat from the steam turbine.

Th is PSD permit for the proposed modification requires the use of Best Available Control Technology (BACT) to limit emissions of n itrogen o xides ( NO

x ), c arbon m onoxide (CO), t otal

p articulate m atter (PM), PM under 10 micrometers ( μ m) in diameter (PM 10 ) and PM under

2.5 μ m in diameter (PM 2.5 ) to the greatest extent feasible. Air pollution emissions from the proposed modification will not cause or contribute to vio lations of any National Ambient Air Quality Standards (NAAQS) or any applicable PSD increments for the pollutants regulated under the permit

.

Additional equipment includes the construction of an additional cool ing tower and an emergency natural gas engi ne to power the emergency boiler recirculation pump

.

EQUIPMENT LIST

Table 1 lists the new equipment that will be regulated by the proposed PSD permit:2 of 17

Sierra Pacific Industries (SAC 12

- 01) Proposed PSD Permit September 2012

Table 1 : New Equipment List Regulated by the PSD Permit

ID Unit Description

U1 One Stoker Boiler with Vibrating Grate Biomass

- f ired with natural gas burners for start

- up Maximum annual average heat input of approximately 468

MMBtu/hr and steam generation rate of 250,000 lbs/hr Equipped with two natural gas burners, each with a maximum rated heat input of 62.5 MMBtu/hr Equipped with selective non

- catalytic reduction (SNCR) system
to reduce NO

x , and multiclone with an electrostatic precipitator ( ESP ) to control PM emissions

U2 Cooling Tower Composed of two

- cells with an expected water load of 4.24 gallons per minute per square foot.

U3 Emergency Engine 256hp at 1,800 rpm Natural gas

- fired

P ower s emergency boiler recirculation pump

Table 2 lists the existing equipment that is not included in this PSD permit . The equipment listed

below is permitted by the District and the Permittee must comply with all applicable requirements. Table 2 is provided for reference purposes only :

Table 2 : Existing Equipment List

ID Unit Descripti on

U4 One Wellons Stoker

Boiler Biomass

- f ired with natural gas burners for start

- up Maximum annual average heat input of approximately 116.4

MMBtu/hr Equipped with SNCR system to reduce NO

x , and multiclone

with ESP to control PM emissions Equipped with one 30,400 ft 3

, 2 hog fuel bins, 2 wood chip

fuel bins

U5 One Conveyance System 2 Cyclones with combined flow rate of 51.004 scfm
1 7,118 ft 2 MAC Pulse Jet Baghouse with 300 hp Blower 1 35” x 45” Rotary Airlock

1 Buhler en

- masse, 19”, 22 tph Conveyor

2 Each o verhead s torage b ins with enclosed sides

U6 One Spray Unit Closed loop unit equipped with integrated, negative pressure, mist collection system and 65’ exhaust stack

U7 One Wood Chip Loading Facility 1 Platform truck dumper 1 Wood chip conveying system with dust containment hood

1 200 hp , 59,000CFM Rader blower

U8 Seven De

- greasing Tanks Non

- solvent based

U9 One Gas Storage Tank Above ground with 10,000 gallon capacity

U10 One Painting Operation3 of 17

Sierra Pacific Industries (SAC 12

- 01) Proposed PSD Permit September 2012 PERMIT CONDITIONS

I. PERMIT EXPIRATION

As provided in 40 CFR § 52.21(r), this PSD p ermit shall become invalid if construction:

A. is not commenced (as defined in 40 CFR § 52.21(b)(9)) within 18 months after the approval takes effect; or

B. is discontinued for a period of 18 months or more; or

C. is not completed within a reasonable time.

II. PERMIT NOTIFICATION REQUIREMENTS

Permittee shall notify EPA Region IX by letter or by electronic mail of the:

A. date construction is commenced, postmarked within 30 days of such date;

B. actual date of initial startup, as defined in 40 CFR § 60.2, postmarked within 15 days of such date;

C. date upon which initial performance tests will commence, in accordance with the provisions of Condition s X.G and H , postmarked not less than 30 days prior to such date. Notification may be provided with the submittal of the performance test protocol required pursuant to Condition s X.G and H ; and

D. date upon which initial performance evaluation of the continuous emissions monitoring system (CEMS) will commence in accordance with 40 CFR § 60.13(c), postmarked not less than 30 days prior to such date. Notification may be provided with the submittal of the CEMS performance te st protocol required pursuant to

Condition X. H

.

III. FACILITY OPERATION

A. At all times, including periods of startup, shutdown, shakedown, and malfunction, Permittee shall, to the extent practicable, maintain and operate the Facility

, including associated air pollution control equipment

, in a manner consistent with good air pollution control practice for minimizing emissions. Determination of whether acceptable operating and maintenance procedures are being used will be based on

infor mation available to EPA, which may include, but is not limited to, monitoring results, opacity observations, review of operating maintenance procedures and inspection of the Facility.4 of 17

Sierra Pacific Industries (SAC 12

- 01) Proposed PSD Permit September 2012 B. The Permittee shall operate and maintain U1 in a manner consistent wit h good engineering practices for its full utilization.

C. As soon as practicable following initial startup of the facility (as defined in 40 CFR §

60.2 ) but prior to commencement of commercial operation (as defined in 40 CFR § 72.2), and thereafter, the Perm ittee shall develop and implement an operation and maintenance plan for U1, U2 and U3 . At a minimum, the plan shall identify measures for assessing the performance of U1, U2, and U3

, the acceptable range of performance measures for achieving the desired o utput , the methods for monitoring

the performance measures, and the routine procedures for maintaining U1, U2 and U3 in good operating condition.

IV. MALFUNCTION REPORTIN G

A. Permittee shall notify EPA at R9.AEO@epa.gov within two (2) working days following the discovery of any failure of air pollution control equipment or process equipment, or failure of a process to operate in a normal manner, which results in an

increase in emissions above the allowable emission limits stated in Section X of this permit.

B. In addition, Permittee shall provide an additional notification to EPA in writing or electronic mail within fifteen (15) days of any such failure described under Condition

IV.A . This notification shall include a description of the malfunctioning equipment or abnormal operation, the date of the initial malfunction, 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 in Section X , and the methods utilized to mitigate emissions and restore normal operations.

C. Compliance with this malfunction notification provision shall not excuse or otherwise

constitute a defense to a ny violation of this permit or any law or regulation such malfunction may cause.

V. RIGHT OF ENTRY

The EPA Regional Administrator, and/or an authorized representative, upon the presentation of credentials, shall be permitted:

A. to enter the premises where the Facility is located or where any records are required to be kept under the terms and conditions of this PSD Permit;

B. during normal business hours, to have access to and to copy any records required to be kept under the terms and conditions of this PSD Permit;

C. to inspect any equipment, operation, or method subject to requirements in this PSD5 of 17

Sierra Pacific Industries (SAC 12

- 01) Proposed PSD Permit September 2012

Permit; and

D. to sample materials and emissions from the source(s).

VI. TRANSFER OF OWNERSHI P

In the event of any changes in control or ownership of the Facility, this PSD Permit shall be binding on all subsequent owners and operators. Within 14 days of any such change in control or ownership, Permittee shall notify the succeeding owner and operat or of the existence of this PSD Permit and its conditions by letter . Permittee shall send a copy of

this letter to EPA Region IX within 30 days of its issuance

.

VII. SEVERABILITY

The provisions of this PSD Permit are severable, and, if any provision of the PSD Permit is held invalid, the remainder of this PSD Permit shall not be affected.

VIII. ADHERENCE TO APPLICA TION AND COMPLIANCE WITH OTHER

ENVIRONMENTAL LAWS

Permittee shall construct th e P roject in compliance with this PSD permit, the applicatio n on which this permit is based

, and all other applicable federal, state, and local air quality regulations. This PSD permit does not release the Permittee from any liability for compliance with other applicable federal, state and local environmental laws and regulations, including the Clean Air Act.



### IX. RESERVED6 of 17

Sierra Pacific Industries

- Anderson (SAC 12

- 01) Proposed PSD Permit September 2012 

### X. SPECIAL CONDITIONS

A. Boiler Annual Emission Limits

Annual emissions, in tons per year (tpy) on a 12

- month rolling average basis, shall not exceed the following:

Table 3

- U1 Rolling 12

- Month Emission Limits

ID NO

x CO PM PM 10 PM 2.5 U1 2 67 4 72 41 41 41

B. Air Pollution Control Equipment and Operation

As soon as practicable f

ollowing initial startup of U1 (startup as defined in 40 CFR § 60.2) but prior to commencement of commercial operation (as defined in 40 CFR § 72.2), and thereafter, Permittee shall continuously operate, and maintain the S N CR system for

control of NO

x and multiclone collectors and ESP for the control of PM, PM 10 and PM 2.5 , and good combustion practices for the co ntrol of CO . Permittee shall also perform any necessary operations to minimize emissions so that emissions are at or below the emission limits specified in this permit.

The Permittee shall employ the multiclone collectors, ESP and good combustion practices at all times when the combustion process is occurring in U1.

C. Steam Production and Emission Limit ation s

1. Except as noted below under Condition X.D

. , on and after the date of initial startup, Permittee shall not discharge or cause the discharge from each u nit into the atmosphere in excess of the following:

Table 4

- U1 Short

- Term Emission Limits

U1

NO

x 60.9 lbs/hr ( 3

- hour block average)

0.13 lbs/MMBtu (12

- month rolling basis)
0.15 lbs/ MMBtu (3

- hour block average)

EPA Method 1

- 4 and 7

CO 107.7 lbs/hr ( 3

- hour block average)

0.23 lb/MMBtu (3

- hour block average )

EPA Method 1

- 4 and 10

PM, PM 10 , PM 2.5 0.02 lb/MMBtu (3

- hour block average)

9.4 lbs/hr (hourly average)7 of 17

Sierra Pacific Industries

- Anderson (SAC 12

- 01) Proposed PSD Permit September 2012 2. Steam production from U1 shall not exceed 275,000 lbs/hr ( 24 hour block average )

.

3

. V isible emissions from U1, except for uncombined water vapor or during periods defined

in Condition X.D. , shall not exceed 20% opacity in any six minute period

, as verified by

the continuous opacity monitoring system (COMS)

.

4

. Visible emissions from the U1 shall not exceed 40% opacity for more than three minutes out of any one 60

- minute period.

5

. At all times, including equipment startup and shutdown, Permittee shall minimize the

cause or discharge of the following emissions :

a. dust from unpaved roads or any other non

- vegetation

- covered area;

b. fugitive sawdust from fuel

- handling devices and/or storage areas.

c. char and/or bottom ash which is processed by the char handling systems or removed from U1 by other means.

d. acc umulation of sawdust or ash on outside surfaces including

, but not limited to

, the main building, U1, ESP , support pads, road areas. Surfaces shall be cleaned on a regular basis to prevent the build

- up of ash and/or fugitive dust.

e. fuel dust or ash spill ed due to an upset condition shall be cleaned up in a timely manner. In no event shall spilled dust or ash be allowed to exist beyond 24 hours of the upset.

D. Requirements during Startup and Shutdown

1. O nly clean cellulosic biomass, as defined in Condition X.F.

, and Public Utilities Commission (PUC)

- quality pipe line natural gas shall be fired during startup and

shutdown . PUC

- quality pipeline natural gas shall not exceed a sulfur content of 0.20 grains per 100 dry standard cubic feet (dscf) on a 12

- month rol ling average basis and shall not exceed a sulfur content of 1.0 grains per 100 dscf , at any time.

2. For U1, normal operating temperature shall be defined as the normal operating temperature specified by the unit manufacturer.

3

. For U1, s tartup shall be defined as the period beginning with U1 not in operation and

conclud ing when U1 has reached a normal operating temperature. During startup, the generator shall be separated from the electrical grid.

4

. For U1, s hutdown shall be defined as the period beginning with curtailment of fuel feed

and concluding when the recorded superheater outlet temperature reaches 150°F and remains so for at least one hour. During shutdown, the generator shall be separated from the electrical grid.8 of 17

Sierra Pacific Industries

- Anderson (SAC 12

- 01) Proposed PSD Permit September 2012 5

. For U1, the duration of startup and shutdown periods and emissions of NO

x , CO , PM,

PM 10 and PM 2.5 shall not exce ed the following , as verified by the CEMS and fuel usage

data :

Table 5

- U1 Startup and Shutdown Limitations

NO

x (hourly average) CO

(hourly average) PM

, PM 10 , PM 2.5

(24

- hour average) SO 2

(hourly average) Duration

Startup 70.2 lb/hr 108 lb/hr 8.93 lb/hr 2.34 lb/hr 24 hours

Shutdown 70.2 lb/hr 108 lb/hr 8.93 lb/hr 2.34 lb/hr 24 hours

6. For U1

, the Permittee must operate the CEMS during startup and shutdown periods

.

7. For U1, the Permittee must record the time, date, and duration of each startup and

shutdown event.

8. For U1, the Permittee must keep records that include calculations of NO

x , CO , PM, PM 10 , PM 2.5 and SO 2 emissions in lb/hr and lb/MMBtu during each startup and shutdown event
based on the CEMS and fuel usage data.

E. Auxiliary Equipment Emissions Limitations

1. Permittee shall not discharge or cause the discharge from each u nit into the atmosphere in excess of the following:

Table 6

- U2 and U3 Emissions Limits

U2 U3

NO

x 4.0 g/kW

- hr (3

- hour block average)

0.78 lb/hr

CO 3.5 g/kW

- hr (3

- hour block average)

6.11 lb/hr

PM/ PM 10 0.26 lbs/hr ( hourly average ) 0.20 g/kW

- hr (3

- hour block average)

0.0216 lb/hr

2. Except during an emergency, U3 shall be limited to operation for maintenance and testing purposes, including as required for fire safety testing. Annual hours of operation for U3, for maintenance and testing, shall not exceed 100 hours per 12

- month rolling average.

F. Operating Conditions and Work Practices

1. Low SNCR activation temperature shall be defined as the lowest operating temperature

for U1 at which the SNCR system is recommended for operation to reduce NO

x emissions as defined by the SNCR manufacturer. This temperature value shall be included in the operation and maintenance plan required by Condition III.C.9 of 17

Sierra Pacific Industries

- Anderson (SAC 12

- 01) Proposed PSD Permit September 2012 2. For U1, S N CR systems for the control of NO

x shall be in operati on at all times that U1

exceeds the low SNCR activation temperature

.

3. For U1, the multiclones and ESP for the control of PM, PM 10 and PM 2.5 shall be in operation at all times during the combustion process.

4. U3 shall not operate during startup of U1 , except when required for emergency operations.

5. W ood waste collection and storage bin leaks shall be minimized at all times.

6. Wood waste collection and storage bins shall be emptied on a schedule that ensures that the cyclone

- separator system does not become plugged.

7. Wood waste collection and storage b ins shall remain enclosed to mitigate the fugitive emissions from the unloading process.

8. All ash shall be transported in a wet condition in covered containers or stored in closed

containers at all times

9. Fugitive dust generated from access and on

- site roads shall be minimized by application of water, dust palliative, chip

- sealing, or paving.

10. Fugitive dust from storage piles, processing area, and disturbed areas shall be minimized by periodic cleanup and/o r use of sprinklers, tarps, or dust palliative agents.

11. During periods of high winds, Permittee shall take immediate action to correct fugitive dust emissions from the chip processing area.

12. All necessary surfaces shall be cleaned or washed sufficiently to prevent wind

- blown dust from leaving the property boundaries.

13. All truck loading and unloading conducted at the facility shall be done in a manner that minimizes spillage, and fugitive emissions.

14. All leaks, spills and upsets of any kind shall be correcte d or cleaned with 4 hours.

15. For U2, the drift rate shall not exceed 0.0005%

.

16. Each container holding volatile organic waste shall be labeled with the contents identified

and information noting the date when waste material was added.

17. The Permittee shall inspect all containers holding VOCs or waste, at least weekly, for10 of 17

Sierra Pacific Industries

- Anderson (SAC 12

- 01) Proposed PSD Permit September 2012 leaks and for deterioration caused by corrosion or other factors.

18. Containers holding ignitable or reactive waste must be located within the property boundary at least 50 feet from th e facility's property line.

19. Incompatible wastes must not be placed in the same container. The treatment, storage, and disposal of ignitable or reactive waste, and the commingling of wastes, or wastes and materials, must be conducted so it does not:

a

. G e nerate extreme heat, pressure, explosion, or violent reaction;

b

. Produce uncontrolled toxic mists, fumes, dusts or gases in sufficient quantities to threaten human health;

c

. Produce flammable fumes or gases in sufficient quantities to pose a risk of fir e or explosions;

d

. Damage the structural integrity of the device or facility containing the waste; or

e

. Through other means threaten human health or the environment.

F. Fuel Restrictions

1

. Clean cellulosic biomass shall constitute the only fuel allowed for use as fuel in U1, except during periods defined in X.D. and to counteract upset conditions.

2

. Clean cellulosic biomass shall have the meaning as defined in 40 CFR Part 241.2. In particular, clean cellulosic m eans those residuals that are akin to traditional cellulosic

biomass such as forest

- derived biomass ( e.g., green wood, forest thinnings, clean and unadulterated bark, sawdust, trim, and tree harvesting residuals from logging and sawmill materials), corn st over and other biomass crops used specifically for energy production ( e.g., energy cane, other fast growing grasses), bagasse and other crop residues ( e.g., peanut shells), wood collected from forest fire clearance activities, trees and clean wood

found in disaster debris, clean biomass from land clearing operations, and clean

construction and demolition wood. These fuels are not secondary materials or solid

wastes unless discarded. Clean biomass is biomass that does not contain contaminants at

concentratio ns not normally associated with virgin biomass materials.

3

. The heat input from pipeline natural gas shall not exceed 10% of the total heat input to

U1 on a 12

- month rolling basis.

G

. Monitoring Conditions

1. For U1, Permittee shall maintain the following equipment at all times when the combustion process i s occurring

a. Permittee shall i nstall, calibrate, operate and quality assure a CEMS that measures
CO, NO

x , and CO 2 in ppm v

. b. Permittee shall conduct initial certification of the CEMS in accordance with11 of 17

Sierra Pacific Industries

- Anderson (SAC 12

- 01) Proposed PSD Permit September 2012

Condition X. G

. 2

.

c. Permittee shall operate and maintain a COMS capable of measuring stack gas opacity

d. Permittee shall install a stack gas volumetric flowrate monitor and steam production

rate monitor

.

2. The CEMS for U1 shall meet the applicable requirements of 40 CFR Part 60 .13 and 40

CFR Part 60 Appendix B, and 40 CFR Part 60 Appendix F, Procedure 1.

3. Each CEMS shall complete a minimum of one cycle of operation (sampling, analyzing, and data recording) for each successive 15

- minut e clock

- hour period.

4. Data sampling, analyzing, and recording of the CEMS shall also be adequate to demonstrate compliance with emission limits during startup and shutdown.

5. The initial certification of the CEMS may either be conducted separately or as part of the initial performance test of U1

. The CEMS must undergo and pass initial performance specification testing on or before the date of the initial performance test.

6. The CEMS shall be audited quarterly and tested annually to demonstrate that it meets the specifications in Condition X.G.2. Permittee shall perform a full stack traverse during the

initial run of annual relative accuracy test auditing of the CEMS, with testin g points selected according to 40 CFR Part 60 Appendix A, Method 1.

7. Permittee shall submit a CEMS performance test protocol to the EPA no later than 30 days prior to the test date to allow review of the test plan and to arrange for an observer to be prese nt at the test. The performance test shall be conducted in accordance with the submitted protocol and any changes required by EPA.

8. For U1, opacity shall be monitored by a COMS that meets the applicable requirements of 40 CFR Part 60 Appendix B, Procedure 1.

9. The COMS shall have a span value of 100% and utilize a computer or other facility which has the capability of interpreting sampling data and producing output to

demonstra te compliance with applicable standards. The span value for the continuous measuring system for measuring opacity shall be between 60 and 80%. The span for the recording instrumentation for the opacity meter shall be 0 to 100%.

10. The operator/owner shall monitor the following combustion and control parameters for

U1 on a continuous basis unless otherwise noted:

a. combustion temperature (at the superheater tube area);

b. temperature at air heater outlet;

c. steam production rate;

11. Permittee shall furnish t he EPA with a written report of the results of tests within 6012 of 17

Sierra Pacific Industries

- Anderson (SAC 12

- 01) Proposed PSD Permit September 2012 days of completion.

12. Permittee shall continuously monitor the ESP for transformer/rectifier (T/R set) On/Off status and Rapper On/Off status.

13. Permittee shall record hourly readings of ESP zone volt age (minimum 10 kilovolts, maximum 60 kilovolts) and amps on the operator log.

14. For U3, p ermittee shall install and maintain an operational non

- resettable elapsed time

meter to record the operating time of the emergency engine

.

H

. Performance Tests

1.

. Performance tests shall be conducted in accordance with the test methods set forth in 40

CFR Part 60.8 and 40 CFR Part 60

- Appendix A, as modified below:

a. EPA Methods 1

- 4, 18 and 25A for VOC emissions. Methods 18 and 25A may both be

used simultan eously to quantify the annual emissions of the organic compounds listed in 40 CFR 51.100(s)(1) (using Method 18) and subtract this amount from the annual total VOC emissions (as determined from Method 25A).

b. EPA Methods 1

- 4 and 6(c) for SO 2 emissions.

c. EPA M ethods 1

- 4 and 10 for CO emissions.

d. EPA Methods 1

- 4 and 7 for NO

x emissions.

e. EPA Methods 1

- 3 and 29 for Pb emissions.

f. EPA Methods 1

- 4 and 5 for PM emissions.

g. EPA Methods 1

- 4, 5 and 202 with a two

- hour test run period for each test for PM 10 and PM 2.5 emissions. In lieu of Method 5, the Permittee may use Other Test Method 27. In lieu of Method 202, the Permittee may use Other Test Method 28.

h. The provisions of 40 CFR Part 60.8(f).

i. In lieu of the specified test methods, alternative methods may be used wi th prior written approval from EPA.

2

. For U1,

a. W ithin 60 days after achieving normal operation , but not later than 120 days after the modification, Permittee shall conduct initial performance tests (as described in 40

CFR Part 60.8) for NO

x CO, PM, PM 10 , PM 2.5 , VOC , SO 2 and Pb emissions.

b

. For performance test purposes, sampling ports, platforms, and access shall be provided on the emission unit exhaust system in accordance with the requirements of

40 CFR Part 60.8(e).

c

. Annual performance tests of PM 10 shall be cond ucted at the facility’s maximum

steam production rate

. d

. Performance tests for NO

x and CO shall be conducted at least every five years beginning ten years after the initial performance test (within 30 days of the tenth anniversary of th e initial performance test date).

e. Permittee shall submit a performance test protocol to EPA no later than 30 days prior13 of 17

Sierra Pacific Industries

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to a performance test to allow review of the test plan and to arrange for an observer to be present at the test. The performance test shall be conducted in accordance with the submitted protocol, and any changes required by EPA.

3

. For U2, the Permittee shall do the fol lowing:

a. P erform weekly tests of the blow

- down water quality using an EPA

- approved method. The operator shall maintain a log that contains the date and result of each

blow

- down water quality test, the water circulation rate at the time of the test, and the resulting mass emission rate. This log shall be maintained onsite for a minimum of five years and shall be provided to EPA and District personnel upon request.

b. C alculate PM, PM 10 , and PM 2.5 emission rate using an EPA

- approved calculation

based on th e total dissolved solids (T DS ) and water circulation rate.

c. C onduct all required cooling tower water quality tests in accordance with an EPA

approved test and emissions calculation protocol. Thirty (30) days prior to the first such test, the operator sh all provide a written test and emissions calculation protocol for EPA review and approval, with a copy to the District as specified in Condition

XII

. d. E stablish a maintenance procedure that states how often and what procedures will be

used to ensure the integrity of the drift eliminators, to ensure that the TDS limits are not exceeded, and to ensure compliance with recirculation rates. This procedure is to be kept onsite and made available to EPA and District personnel upon request. Permittee shall promp tly report any deviations from this procedure.

4

. For U3, the P ermittee shall conduct an initial performance test ( as described in 40 CFR

Part 60.8) for NO

x , CO and PM 10 emissions and at least every five years beginning ten years after the initial performance test (within 30 days of the tenth anniversary of the initial performance test date).

5

. Upon written request from the Permittee, and adequate justification, EPA may waive a specific annual test and/or allow for testing to be done at less than maximum operating capacity.

6

. Permittee shall take monthly samples of the natural gas combusted. The samples shall be analyzed for sulfur content using an ASTM method. As an alternative, Permittee may obtain laboratory analysis of sulfur content from the fuel supplier on a monthly basis, if Permittee can demonstrate that the fuel tested is representative of fuel delivered to the facility.

I. Recordkeeping and Reporting

1. Permitt ee shall maintain a file of all records, data, measurements, reports, and documents related to the operation of the Facility, including, but not limited to, the following: all records or reports pertaining to adjustments and/or maintenance performed on any system
or device at the f

acility; initial performance test data for U1, documents from the fuel14 of 17

Sierra Pacific Industries

- Anderson (SAC 12

- 01) Proposed PSD Permit September 2012 supplier certifying compliance with fuel sulfur content Condition X.H.6

. ; and all other information required by this permit recorded in a permanent form suitable for inspection.

2. Permittee shall record the efficiency of U1 daily . The heat input, as determined from the U1 efficiency and steam production rate, shall not exceed 468 MMBtu/hr on a monthly

basis

.

3. For U1, Permittee shall maintain the following records:

a. The total monthly hours of operation ; b. 3

- hour average s of CO and NO

x emissions in units of lb s /MMBtu and lbs/hour dry basis. All time periods when the boiler is not in operation shall be excluded from the

averages. T he monthly average of CO and NO

x emissions expressed in lbs/hour shall also be included;

c

. 3

- hour average calculations of PM 10 emissions in units of lbs/MMBtu and lbs/hour dry basis using the most re cent annual PM 10 source test ; d

. notification of all periods the continuous monitors were not functioning and the reasons for the same;

e

. steam production rate average d over a daily (24

- hour) period

.

4

. Permittee shall maintain CEMS and COMS records that include the following:

a. the occurrence and duration of any startup, shutdown, or malfunction, performance testing, evaluations, calibrations, checks, adjustments maintenance, duration of any periods during which a CEMS or COMS is inoperativ e, and corresponding emission

measurements

. b. date, place, and time of measurement or monitoring equipment maintenance activity;

c. operating conditions at the time of measurement or monitoring equipment maintenance activity;

d. date, place, name of com pany or entity that performed the measurement or monitoring equipment maintenance activity and the methods used; and

e. results of the measurement or monitoring equipment maintenance.

5. Permittee shall maintain records and submit a written report of all excess emissions and opacity measurements to EPA and the District semi

- annually, except when more frequent reporting is specifically required by an applicable subpart; or the Administrator, on a

case

- by

- case basis, determines that more frequent reporting is necessary to accurately assess the compliance status of the source. The report is due on the 30 th day following

the end of each semi

- annual period and shall include the following:

a. Time intervals, data and magnitude of the excess emissions, the nature a nd cause (if known), corrective actions taken and preventive measures adopted ; b. Applicable time and date of each period during which the CEMS or COMS was inoperative (monitor down

- time), except for zero and span checks, and the nature of

CEMS or COMS repairs or adjustments;

c. A statement in the report of a negative declaration; that is, a statement when no

excess emissions occurred or when the CEMS or COMS has not been inoperative,15 of 17

Sierra Pacific Industries

- Anderson (SAC 12

- 01) Proposed PSD Permit September 2012

repaired, or adjusted;

d. Any failure to conduct any required source testing , monitoring, or other compliance activities; and

e. Any violation of limitations on operation, including but not limited to restrictions on hours of operation.

6. A period of monitor down

- time shall be any unit operating clock hour in which sufficient

data are not obtained by the CEMS to validate the hour for NO

x , CO

, or CO 2

.

7. Excess emissions shall be defined as any period in which emissions exceed the emission

limits and standards set forth in Conditions X.C.1 and X. C.2

.

8. Excess emissions indicated by the CEM S , COMS , source testing, or compliance monitoring shall be considered violations of the applicable emission limit or standard for the purpose of this permit.

9. For U1, daily records of fuel received other than natural gas shall be maintained . These

records shall include a detailed description of the fuel supplier, fuel type and tons

received.

10

. Unless otherwise specified herein , a ll records required by this PSD Permit shall be retained for not less than five years following the date of su ch measurements, maintenance, reports , and/or records.16 of 17

Sierra Pacific Industries

- Anderson (SAC 12

- 01) Proposed PSD Permit September 2012 XI. ACROYNMS AND ABBREVI ATIONS

ASTM American Society for Testing and Materials

BACT Best Available Control Technology

BTU British Thermal Unit

CAA Clean Air Act

CEMS Continuous Emissions Monitoring System

CFR Code of Federal Regulations

CO Carbon Monoxide

CO 2 Carbon Dioxide

CTG Combustion Turbine Generator

CTM Conditional Test Method

COMS Continuous Opacity Monitoring System

CU Cogeneration Unit

District Shasta County Air Quality Management District

DLN Dry Low NO X (d)scf (dry) Standard Cubic Feet

EPA Environmental Protection Agency

ESP Electrostatic Precipitator

gpm Gallons Per Minute

gr G rains

HHV Higher Heating Value

hr Hour

lbs Pounds

MMBtu Million British Thermal Units

MW Megawatt NAAQS National Ambient Air Quality Standards

NO 2 Nitrogen Dioxide

NO X Oxides of Nitrogen

NSPS New Source Performance Standards

PM Total Particulate Matter

PM 2.5 Particulate Matter with aerodynamic diameter less than 2.5 micrometers

PM 10 Particulate Matter with aerodynamic diameter less than 10 micrometers

ppm Parts Per Million ppmvd Parts Per Million by Volume, Dry basis

ppmv Parts Per Million by Volume

PSD Prevention of Significant Deterioration

RATA Relative Accuracy Test Au dit

SCR Selective Catalytic Reduction

SO 2 Sulfur Dioxide

SO X Oxides of Sulfur

TDS Total Dissolved Solids

tpy Tons Per Year

yr Year

XII. AGENCY NOTIFICATIONS17 of 17

Sierra Pacific Industries

- Anderson (SAC 12

- 01) Proposed PSD Permit September 2012 All correspondence as require d by this Approval to Construct must be sent to:

A

. D irector, Air Division (Attn: AIR

- 5) EPA Region IX

75 Hawthorne Street

San Francisco, CA 94105

- 3901

Email: R9 .AEO @epa.gov Fax: (415) 947

- 3579

With a copy to:

B. Air Pollution Control Officer Shasta County Air Quality Management District 1855 Placer Street, Suite 101 Redding , CA 96001

Fax: (661) 723

- 3450