### Agreementfor Partial Delegation ofthe

Federal Prevention ofSignificant Deterioration (PSD) Program

Set Forth in 40 CFR 52.21 bythe United States Environmental Protection Agency, Region 9 to the North Coast Unified Air Quality Management District The undersigned, on behalf ofthe North Coast Unified Air Quality Management District (District) and the United States Environmental ProtectionAgency (EPA), herebyagreeto partial delegation ofauthority to implement the Prevention of Significant Deterioration (PSD) requirements of40 CFR 52.21 for new major stationary sources of nitrogen oxides (NOx), and major modifications of NOx. This partial delegation is executed pursuantto 40 CFR 52.21(u), Delegation ofAuthority. Background Recitals 1. In accordance with Sections 165 et seq. of the Clean Air Act, EPA has adopted regulations that implement the Prevention of Significant Deterioration (PSD) program for areas where the State implementationplan has been disapproved fornotmeetingthe PSD program requirements ofSections 160 through 165 of the Clean Air Act. These regulations are set forth in 40 CFR 52.21. These regulations have been incorporated as part ofthe applicable California State plan for implementation ofthe New Source Review program under the Clean Air Act pursuant to 40 CFR 52.270(a)(3), and they govern a portion the implementation ofthe PSD program requirements within the District. 2. EPA’s PSD regulations requirethat certain stationary sources oihirpollutantemissions must undergo a PSD source review and obtain a PSD permit before they may be constructed and operated, as set forth in 40 CFR 52.21. 3. Under Subsection (u) of EPA’s PSD Regulations, 40 CFR 52.21(u), EPA may delegate its authority to conduct its PSD source review under40 CFR 52.21 to the Districtfor sources within the District’s geographical jurisdiction. Pursuant to such delegation, the District “stands in the shoes” of EPA for purposes of conducting the PSD source review and issuing the PSD permit, and in doing so must follow and implement the same substantive and procedural requirements as EPA would if it were conducting the PSD source review and issuing the PSD permit itself. 4. The District has the authority to issue PSD permits in accordance with regulations that have been approved into the California State Implementation Plan (SIP), except as provided in 40 CFR 52.270(b)(2). Specifically, the District’s SIP-approved PSD program does not include NOx emissions as an ozone precursor, a requiredelementofthe PSD program. As aresult, EPApromulgated alimited federal implementation plan (FIP) within the District under40 CFR 52.21 (see 76 FR 152 on Aug. 8, 2011 and 40 CFR 52.270(b)(2)(iv)). As described in this limited FU~ EPA retains authority to implementthe applicablerequirements ofthePSD permitting program inthe Districtforthoseprojects that are new majorstationary sources ofNOx or major modifications ofNOx under40 CFR 52.21. 5. The District and EPA previously agreed to a partial delegation of authority to implement PSD requirements onJanuary 8, 1993 (1993 agreement). The 1993 agreement (see 58 FR43798 onAugust 18, 1993) delegated to the Districtthe authorityto implement PSD program requirements for sourcesNorth Coast Unified AQMD

— Partial Delegation Agreement New Major Stationary-Sourc~es ofNOx and Major Modifications ofNOx with stack heights greater than 65 meters. This partial delegation of authority supplements, and does not subsume, the 1993 agreement. Scope ofPartial Delegation 6. This partial delegation ofauthorityto the District applies to the implementation ofthe PSD requirements of40 CFR 52.21 for new majorstationary sources ofNOx and major modifications of NOx. It does not delegate authorityto the Districtto issue PSD permits based on plantwide applicability limitations (PALs). 7. District-issued permits with federal PSD provisions related to new majorstationary sources ofNOx and major modifications ofNOx shall be deemed to meetfederal PSD permit requirements pursuant to the provisions ofthis delegation agreement provided that:
a. Such permits satisfy all ofthe substantive requirements ofthe PSI program in 40 CFR 52.21, including (without limitation) thefederal BACT requirementpursuantto 40 CFR 52.21(j) and 40 CFR 52.21(b)(12), and the impact analysis requirements pursuantto 40 CFR 52.21(k)-(o); and b. Such permits have been issued in compliance with all ofthe procedural requirements of the PSD program in 40 CFR 52.21 and 40 CFR Part 124; Applicability 8. EPA and the District have agreed to this partial delegation of PSD authority to allow the District to implementthe PSD requirements of40 CFR52.21 fornew majorstationarysources ofNOx and major modifications ofNOx. 9. EPA is responsible for the issuance of PSD permits on Indian Lands under Sections 110 and 301 of the Clean Air Act. This agreement does not grant or delegate any authority under the Clean AirAct on Indian Lands to the District. 10. This partial delegation ofPSD authority becomes effective upon the date ofsignature by both parties to this agreement. General Delegation Conditions 11. The District shall issue PSD permits under this partial delegation agreement in accordance with the requirements of 40 CFR 52.21 in effect as of the date the District issues the final permit, except as provided in Conditions 7through 9; and, totheextentthatthePSD requir~ents ofthe District’s Rules are consistentwith the requirements of40 ~FR 52.21, in accordance with those requirements as well. 12. The District may (but shall not be required to) issue Federal PSD permits in an integrated permit proceeding along with permits required underCalifornia lawand Districtregulations, and mayinclude both Federal PSD requirements and California and/or District requirements in a single, integrated permit document. All Federal PSD permit conditions shall be clearly identified in any integrated

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— Partial Delegation Agreement New Major Stationary Sources ofNOx and Major Modifications ofNOx permit document issued. However, nothing in this partial delegation agreement shall be construed to direct or to authorize the District to issue PSD permits in an integrated permit proceeding that are inconsistentwith Federal PSD requirements. Any provisions that are included in an integrated permit document underCalifornia law or District regulations thatare not consistentwith or authorized bythe Federal PSD requirements shall notbe considered part ofthe Federal PSD permit. 13. This partial delegation agreement may be amended at any time by the formal written agreement of both the District and the EPA, including amendments to add, change, or remove terms and conditions ofthis agreement. 14. EPA may review the PSD permit(s) issued bythe Districtto ensurethatthe District’s implementation ofthis delegation agreement is consistentwith federal PSD regulations as setforth in 40 CFR Section 52.21 and 40 CFR Part 124. 15. If EPA determines that the District is not implementing or enforcing the PSD program in accordance with the terms and conditions ofthis partial delegation agreement, 40 CFR 52.21, 40 CFR Part 124, or the Clean Air Act, EPA may after consultation with the District revoke this partial delegation agreement in whole or in part. Any such revocation shall be effective as of the date specified in a Notice ofRevocation to the District. 16. Revocation ofthis partial delegation agreement as specified in Condition 14 above shall be the sole remedy available for any failure by the District to implement or enforce the PSD program in accordance with theterms and conditions ofthis partial delegation agreement, 40 CFR 52.21, 40 CFR Part 124, or the Clean Air Act. The District’s agreement to implement the Federal PSD program on s behalf, and EPA’s agreement to delegate its authority i~or the Federal PSD program to the District under 40 CFR 52.21(u), is not intended and shall not be construed to alter or expand the statutory limits on the imposition ofsanctions againstthe Districtunderthe Clean AirAct forfailure to administerand enforce federal regulatory requirements as described in Brown v. EPA, 521 F.2d 827 (9th Cir. 1975), vacated as moot, 431 U.S. 99 (1977), and Brown v. EPA, 566 F.2d 665 (9th1 Cir. 1977). 17. Ifthe District determines that issuing a PSD permit in accordance with the terms and conditions of this partial delegation agreement, 40 CFR 52.21, 40 CFR Part 124, and the Clean Air Act conflicts with State orlocal law, orexceeds the District’s authority orresources to fullyand satisfactorily carry out such responsibilities, the District after consultation with EPA may remand administration ofsuch permits, or of Federal PSD delegation in its entirety, to EPA. Any such remand shall be effective as ofthe date specified in a Notice ofRemand to EPA. 18. The permit appeal provisions of 40 CFR Part 124, including subpart C thereof, pertaining to the Environmental Appeals Board (EAB), shall apply to all federal PSD permitting action appeals to the EAB for PSD permits issued bythe District under this partial delegation agreement. For purposes of implementing the federal permit appeal provisions under this partial i~Jegation, the District shall notifythe applicant and each person who submitted written comments or requested notice ofthefinal permit decision in accordance with 40 CFR 124.15. The notice offinal permit decision shall include (i) referenceto the procedures for appealingthe final permitdecision under40 CFR 124.19; and (ii) a statement ofthe effective date ofthe final permit decision established pursuant to 40 CFR 124.15(b)

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-North Coast Unified AQMD

— Partial Delegation Agreement New Major Stationary Sources ofNOx and Major Modifications ofNOx and that the effective date shall be suspended ifthe final permit decision is appealed pursuant to 40 CFR 124.19 until such appeal is resolved bythe EAB. Communication between EPA and the District The District and EPAwill use thefollowing communication procedures: 19. The Districtwill forward to EPA copies of(1) all draft PSD permits prepared bythe District pursuant to 40 CFR 124.6; (2) all “Statements of Basis” prepared by the District pursuant to 40 CFR 124.7 and/or “Fact Sheets” prepared bythe Districtpursuantto 40 CFR 124.8; and (3) all public notices the District issues pursuantto the requirements of40 CFR 124.10. Such copies shall be provided to EPA at or priorto the beginning ofthe public comment period for each PSD preliminary determination. 20. Upon any final PSD permit issuance, the District will forward to EPA copies of the notice offinal permit issuance required by 40 CFR 124.15(a) and the responses to public comments required by 124.17(a) (if any); and, ifrequested by EPA, copies ofall substantive comments (ifany). EPA Policies Applicable to PSD Review 21. All PSD BACT determinations are required to perform a “top-down” BACT analysis. EPA will consider as deficient any BACT determination that does not begin with the most stringent control options available forthe source under review. 22. The District shall notify and/or consult with the appropriate Federal, State and local agencies as required by 40 CFR 52.21 and 40 CFR Part 124. The District shall (among other requirements as applicable):
a. Notify the appropriate Class I area Federal Land Manager(s) within 30 days of receipt of a PSD permit application and at least 60 days priorto any public hearing ifthe emissions from a proposed facility may affect any Class I area(s), as required by40 CFR 52.21(p); b. Notifythe Fish andWildlife Service (FWS) and EPAwhenasubmitted PSD permitapplication has been deemed complete, in order to assist EPA in carrying out its non-delegable responsibilities to consultwith FWS under Section 7 ofthe Endangered Species Act;
c. Notify the applicant of the potential need for consultation between EPA and FWS if an endangered species may be affected bythe project; and d. Refrain from issuing afinal PSD permit unless FWS has determined thatthe proposed project will not adversely affect any endangered species. Permits 23. The District shall follow EPAguidance on anymatter involving the interpretation ofsections 160-169 ofthe Clean Air Act or 40 CFR 52.21 relating to applicability determinations, PSD permit issuance

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— Partial Delegation Agreement New Major Stationary Sources ofNOx and Major Modifications ofNOx and enforcement. EPA shall provide guidance to the District as appropriate in response to any request bythe District for guidance on such federal PSD issues. 24. The District shall at no time grant anywaiver ofthe PSD permit requirements. 25. Federal PSD permits issued by the District must include appropriate provisions to ensure permit enforceability. PSD permit conditions shall, at a minimum, contain reporting requirements on initiation ofconstruction, initial commencement ofoperation, and source testing (where applicable). 26. When any conditions ofa PSD permit are incorporated into aTitle V permit, the District shall clearly identify PSD as the basis forthose conditions. Permit Enforcement 27. The primary responsibility forenforcement ofthe PSD regulations relatedtothe subject matterofthis agreement rests with the District. The District will enforce the provisions of the PSD program, consistent with the enforcement provisions ofthe Clean AirAct and Condition 28 ofthis agreement, except in those cases where District rules, policies, or permit conditions are as stringent or more stringent than the PSD requirements. In that case, the District may electto enforce the as stringent or more stringent District requirements. 28. Nothing in this partial delegation agreement shall prohibit EPAfrom enforcing the PSD provisions of the CleanAirAct, 40 CFR 52.21, oranyPSD permit issued bythe Districtpursuantto this agreement. 29. In the event that the District is unwilling or unable to enforce a provision of this partial delegation agreement with respectto asource subjecttothe PSD regulations, the Districtwill immediately notify the Air Division Director. Failure to notify the Air Division Director does not preclude EPA from exercising its enforcement authority.
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________________________ Date Brian Wilson Air Pollution Control Officer North Coast Unified Air Quality Management District



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________________ Date Elizabeth ~qams Acting Dir’~tor, Air Division U.S. EPA, Region IX