* * * PUBLIC NOTICE * * *

SIERRA PACIFIC INDUSTRIES - ANDERSON DIVISION ANNOUNCEMENT OF PROPOSED PERMIT MODIFICATION, REQUEST FOR PUBLIC COMMENT, AND PUBLIC HEARING ON

CLEAN AIR ACT PREVENTION OF SI GNIFICANT DETERIORATION PERMIT

PERMIT APPLICATION NO. SAC 12-01

Proposed Action: The United States Environmental Protection Agency (EPA) Region 9 provides notice of EPA Region 9’s proposed action to authorize air pollutant emissions from the expansion of a facility operated by Sierra P acific Industries-Anderson Division (SPI or SPIAnderson). EPA Region 9 is proposing a m odification of the Prev ention of Significant Deterioration (PSD) permit for this facility th at would grant conditional approval, in accordance with the PSD regulations (40 CFR 52.21), to SPI to construct and operate a new cogeneration unit and ancillary equipment at its existi ng lumber manufacturing facility in Anderson,

California.

EPA Region 9 accepted public comment on a previ ous version of this PSD permit modification from September 14, 2012 to October 17, 2012. Toda y, we are announcing a new version of the permit, which addresses emissions of greenhouse ga ses (GHGs), as well as criteria pollutant emissions. We are also announcing a new public comment period and our intention to hold a public hearing. Please see below for details on th e comment period and the public hearing date.

Background Information: The SPI-Anderson Division facility is located at: 19758 Riverside Avenue, Anderson, California 96007 (Assessor’s Parcel No. 050-110-025). The site is approximately 0.5 mile west of Interstate 5, and approximately 2 miles north of the City of Anderson. The facility is borde red on the northeast by the Sacram ento River, on the northwest by a private parcel, on the southwest by Union P acific Railroad tracks a nd State Route (SR) 273 and on the southeast by private parcel s. The SPI facility is located within the jurisdiction of the SCAQMD. The mailing address for SPI-Anderson is P.O. Box 496028, Redding, CA 96049-

6028.

The original PSD permit for this facility was i ssued in 1994 by the Shasta County Air Quality Management District (SCAQMD). On Marc h 3, 2003 EPA revoked and rescinded SCAQMD’s authority to issue and modify federal PSD pe rmits for new and modified major sources of attainment pollutants in Shasta County.

The site currently contains a wood-fired boiler cogeneration unit with a ssociated air pollution control equipment and conveyance systems that produ ces steam to dry lumber in existing kilns. SPI has applied for approval to construct a nd operate an additional new cogeneration unit capable of generating 31 megawatts (MW) of gr oss electrical output from the combustion of clean cellulosic biomass, a 256 horsepower (hp) natural gas-fired emergency engine, and a twocell cooling tower. EPA Region 9 is propos ing to modify the 1994 PSD permit issued by SCAQMD to incorporate the proposed cogeneration unit and auxiliary equi pment. All existing equipment at the SPI-Anderson facility is st ill subject to all existing permits issued by SCAQMD.On September 13, 2012, EPA Region 9 proposed to issue a previous version of the PSD permit modification we are announcing today, and we accepted comments from September 14, 2012 through October 17, 2012. On February 19, 2013, after consideration of the public comments received, EPA Region 9 issued a PSD permit mo dification and explaine d that it would be effective in 30 days unless our action was appeal ed to the EPA’s Environmental Appeals Board (EAB). Within that 30 day time frame, various parties filed appeals with the EAB, which suspended the permit’s effective date. On Ju ly 18, 2013, the EAB remanded the permit to EPA Region 9 because it determined that our decision not to hold a public heari ng prior to issuing the permit was contrary to applicable regulations. The EAB directed EPA Region 9 to reopen the permit proceedings to hold a public hearing, issu e a final permit decision and respond to any new comments received during the hearing. See In re Sierra Pacific Industries , PSD Appeal Nos. 13- 01 to 13-04, slip op. at 67 (EAB July 18, 2013).

A separate legal proceeding regarding EPA’s defe rral of biogenic carbon dioxide emissions from PSD requirements has also influenced the action we are proposing today. On July 12, 2013, the Court of Appeals for the Circuit for the District of Columbia issued a decision that will, upon the

date it becomes final and e ffective, invalidate EPA’s regulation deferring from the PSD requirements the carbon dioxide emissions resulti ng from the combustion of certain biological materials, including materials such as wood, wo od waste, forest residue, and agricultural material. ( See Ctr. for Biological Diversity v. EPA , 722 F.3d 401 (D.C. Cir. 2013). As of this notice, the D.C. Circuit’s decision is not yet final and effective a nd could be subject to additional legal proceedings. To facilitate EPA’s abilit y to proceed on this pe rmit application in the interim, SPI has submitted ma terial regarding greenhouse ga s (GHG) emissions from the proposed new equipment and requested that EP A review such materials and include GHG emission limits and related requirements in the proposed permit modification. The proposed permit modification that EPA Re gion 9 is announcing today is similar to the proposed permit modification that we announced in September 2012 and issued in February 2013 (subject to the filing of EAB petitions); however, it now includes GHG em ission limits and related requirements. We have also taken this opportunity to revise certain othe r conditions (primarily related to monitoring, performance testing, and recordkeeping) to address minor technical issues we identified since February 2013.

The PSD permit modification we are proposing toda y requires the use of Be st Available Control Technology (BACT) to limit emissions of nitrogen oxides (NO

x ), carbon monoxide (CO), total particulate matter (PM), particul ate matter under 10 micrometers ( μ m) in diameter (PM 10 ) and particulate matter under 2.5 μ m in diameter (PM 2.5 ), and GHGs, to the greatest extent feasible. Air pollution emissions from the new cogeneration un it will not cause or c ontribute to violations of any National Ambient Air Qual ity Standards (NAAQS) or any a pplicable PSD increments for the pollutants regulated under the PSD permit.

Request for Public Comment: Any interested person may subm it written comments regarding today’s proposed PSD permit modification. Al l written comments on today’s proposed action must be received by EPA Region 9 via e-mail by December 13, 2013 , or postmarked by December 13, 2013 . Comments must be sent or delivered in writing to Shaheerah Kelly at one of the following addresses:E-mail: R9airpermits@epa.gov

U.S. Mail: Shaheerah Kelly U.S. Environmental Protection Agency, Region 9 (AIR-3)

75 Hawthorne Street San Francisco, CA 94105-3901 Phone: (415) 947-4156

Alternatively, written comments may be submitted to EPA Region 9 at the Public Hearing for this matter that will be held on December 10, 2013 as described below.

Comments should address the proposed PSD perm it modification including, but not limited to,

such matters as:

1. The Best Available Control T echnology (BACT) determinations; 2. The effects, if any, on Class I areas; 3. The effect of the proposed fac ility on ambient air quality; and 4. The attainment and maintenance of the NAAQS.

Public Information Meeting: To facilitate opportuni ties for interested persons to provide informed oral presentations at the public hearing describe below, EPA Region 9 will hold a Public Information Meeting for the purpose of providing interested parties with additional information and an opportunity to ask questi ons and obtain answers to questions about for informal discussion of the proposed Project. The date, time and location of the Public Information Meeting are as follows:

Date: December 10, 2013

Time: 4:30 PM – 6:00 PM

Location: City of Anderson Community Center

1887 Howard Street Anderson, California 96007

Public Hearing: Pursuant to 40 CFR 124.12, EPA Region 9 also intends to hold a Public Hearing to provide the public with further opportunity to comment on today’s proposed PSD permit modification. At this Public Hearing, any interested person may provide written or oral comments and data pertaining to today’s PSD perm it modification. The date, time and location of the Public Hearing are as follows:

Date: December 10, 2013

Time: 7:00 PM – 9:00 PM

Location: City of Anderson Community Center

1887 Howard Street Anderson, California 96007

If you are a person with a disab ility and require a reasonable accommodation for this event, please contact Philip Kum at kum.philip@epa.gov or at (415) 947-3566. If possible, requestsshould be made at least 5 busine ss days in advance of the event to ensure proper arrangements
can be made.

Additional Information: All information submitted by the appli cant is available as part of the administrative record. EPA Region 9’s proposed PSD permit modification, a Supplemental Fact Sheet/Ambient Air Quality Impact Report ( AAQIR) dated November 2013, the AAQIR dated September 2012, the permit application and othe r supporting information are available on the EPA Region 9 website at http://www.epa.gov/region09/air/permit/r9-permitsissued.html#pubcomment . The administrative record may also be viewed in person, Monday through Friday (excluding federal holidays) fr om 9:00 AM to 4:00 PM, at the EPA Region 9 address above. Due to building security pro cedures, please call Shah eerah Kelly at (415) 947-

4156 at least 72 hours in advance to arrange a visit. Hard copies of the administra tive record can be mailed to individuals upon request in ac cordance with Freedom of Information Act requirements as described on the EPA Region 9 website at http://www.epa.gov/region9/foia/

.

EPA Region 9’s proposed PSD permit modificat ion, the Supplemental AAQIR dated November 2013, and the AAQIR dated September 2012 are also available for review at the (1) Shasta County Air Quality Management District at 1855 Placer St., Suite 101 in Redding, CA 96001; (2) Anderson Public Library at 3200 W. Cent er Street in Anderson, CA 96007; (3) Redding Public Library at 1100 Parkview Ave. in Reddi ng, CA 96001; and (4) Shasta Lake Gateway Library at 4150 Asby Court in Shasta Lake, CA 96019.

All written comments that are received on toda y’s proposed action 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 Confiden tial Business Information (CBI) or other information whose disclosure is restricted by st atute. Information that you consider CBI orotherwise protected should be clearly identified as such and should not be submitted through email. A transcript of the public hearing will also be included in the public docket. If you send email 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-ma il or postal address must be provided with your comments if you wish to receive di rect notification of EPA’s final decision regarding the permit.

EPA’s Final Permit Decision: EPA Region 9 will consider all new written and oral comments submitted during the public comment period, in cluding those provided at the public hearing, before taking final action on the PSD permit modi fication. EPA Region 9 will send notice of the final decision to each person who provides contac t information and who: (i) submits comments during the public comment period, including oral comments provide d at the public hearing; or (ii) requests notice of the final permit d ecision. EPA Region 9 will respond to all new substantive comments in a document accompanying EPA’s final permit decision.

EPA’s final permit decision will become effective 30 days after the service of notice of the

decision unless:

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

2. Our decision is appealed to the EAB pursu ant to 40 CFR Part 124.19. Please note that the EAB’s July 18, 2013 decision remanding EPA Region 9’s February 19, 2013 permitmodification stated: “Once [EPA Region 9] issues a final permit decision following the public hearing required by the remand, that fi nal permit decision and the Board’s decision in this matter become final agency action subject to judicial review. 40 C.F.R. §124.19(l). . . . The Board is not requiring, and will not accept, an appeal to the Board of the final permit decision for the Project following remand in this case.” In re Sierra Pacific Industries, PSD Appeal Nos. 13-01 to 13-04, s lip op. at 67 (EAB July 18, 2013);

or

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

case the final decision sh all become effective immediately upon issuance.

If EPA issues a final decision granting the PSD permit modification, and there is no appeal, construction of the modification may commence, s ubject to the conditions of the PSD permit and other applicable permit and legal requirements.

If you have questions, please contact Shaheer ah Kelly at (415) 947-4156 or e-mail at R9airpermits@epa.gov . If you would like to be added to our mailing list to receive future information about this proposed permit decision or other PSD permit decisions issued by EPA Region 9, please Shaheerah Kelly at (415) 947-4156 or send an e-mail at R9airpermits@epa.gov

, or visit EPA Region 9’s website at http://www.epa.gov/region09/ air/permit/psd-publicguidelines.html

.

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

matter.

Published: November 8, 2013