* * * PUBLIC NOTICE * * *

S IER RA PACIFIC INDUSTRIES

- ANDERSON DIVISION

ANNOUNCEMENT OF PROPOSED PERMIT MODIFICATION AND REQUEST FOR PUBLIC COMMENT ON PROPOSED CLEAN AIR ACT PREVENTION

OF SIGNIFICANT DETERIORATION PERMIT

PERMIT APPLICATION NO. SAC 12

- 01

The United States Environmental Protection Agency (EPA) provides notice of, and requests public comment on, EPA’s proposed action relating to the major modification of the Prevention of Significant Deterioration (PSD) permit for Sierra Pacific Industries ( SPI)

- Anderson Division

. EPA is issuing a proposed PSD permit that would grant conditional approval, in accordance with the PSD regulations (40 CFR 52.21), to SPI to construct and operate a new cog e neration unit at

its existing Anderson facility . The mail ing address for SPI

- Anderson is P.O. Box 496028 Redding, CA 96049

- 6028 . The proposed location for the modification is 19758 Riverside Ave.,

Anderson

, CA 96007

.

SPI has applied for approval to construct and operate a n additional new cogeneration unit capab le of generating 31 MW of gross electrical output from the combustion of clean cellulosic

biomass. The original PSD Permit for this lumber manufacturing facility was issued in 1994 by

the S hasta County Air Quality Management District (SCAQMD) . The site cur rently contains a

wood

- fired boiler cogeneration unit with associated air pollution control equipment and conveyance systems that produces steam to dry lumber in existing kilns. The proposed new cogeneration unit will be constructed at the existing SPI

- And erson Division facility which is located at 19758 Riverside Avenue in 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 faci lity is bordered on the northeast by the Sacramento River, on the northwest by a private parcel, on the southwest by Union Pacific Railroad tracks and State Route (SR) 273 and on the southeast by private parcels. The city of Anderson is located within

the SCAQMD.

On March 3, 2003 USEPA revoked and rescinded SCAQMD’s authority to issue and modify federal PSD permits for new and modified major sources of attainment pollutants in Shasta County .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 to modify the PSD permit issued by S CAQMD to incorpora te the proposed cogeneration unit and auxiliary equipment

. All existing equipment at

the SPI

- Anderson facility is still subject to comply with all existing permits issued by SCAQMD.

This modification to the PSD permit requires the use of Best Available Control Technology (BACT) to limit emissions of nitrogen oxides (NO

x ), carbon monoxide (CO), total particulate matter (PM), particulate matter under 10 micrometers (μm) in diameter (PM 10 ) an d particulate matter under 2.5 μm in diameter (PM 2 .5 ) to the greatest extent feasible for the new cogeneration

unit . Air pollution emissions from the new cogeneration unit w ill not cause or contribute to violations of any National Ambient Air Quality Standards (NAAQS) or any applicable PSD

increments for the pollutants regulated under the PSD permit.

Pursuant to 40 CFR 124.12, EPA has discretion to hold a Public Hearing if we determine there is a significant amount of public interest in the proposed permit. Requests for a Public Hearingmust state the nat ure of the issues proposed to be raised in the hearing. If a Public Hearing is to

be held, a public notice stating the date, time and place of the hearing will be made at least 30 days prior to the hearing. Reasonable attempts will be made to notify directly any person who has commented on this proposal of any pending Public Hearing, provided contact information has been given to the EPA contact person listed below.

Any interested person may submit written comments or request a Publi c Hearing regarding EPA’s proposed PSD permit for th is modification . All written comments and requests on EPA’s proposed action must be received by EPA via e

- mail by October 17

, 2012, or postmarked by

October 17 , 2012

. Comments or requests must be sent or delivered in writing to Omer Shalev at one of the following addresses:

E

- mail: R9airpermits@epa.gov

U.S. Mail: Omer Shalev (AIR

- 3)

U.S. EPA Region 9

75 Hawthorne Street San Francisco, CA 94105

- 3901 Phone: (415) 972

- 3538

Comments should address the p roposed permit modification and facility, including such matters

as: 1. The Best Available Control Technology (BACT) determinations;

2. The effects, if any, on Class I areas;

3. The effect of the proposed facility on ambient air quality; and

4. The attainm ent and maintenance of the NAAQS.

All information submitted by the applicant is available as part of the administrative record. The proposed air permit, fact sheet/ambient air quality impact report, permit application and other supporting information are available on the EPA Region 9 website at http://www.epa.gov/region09/air/permit/r9

- permits

- issued.html#pubcomment . The administrative record may also be viewed in person, Monday through Friday (excluding federal holidays) from 9:00 AM to 4:00 PM, at the EP A Region 9 address above. Due to building security procedures, please call Omer Shalev at (415) 972

- 3538 at least 24 hours in advance to arrange a visit. Hard copies of the administrative record can be mailed to individuals upon request in accordance with Freedom of Information Act requirements as described on the EPA Region 9 website at http://www.epa.gov/region9/foia/

.

EPA’s proposed PSD permit for the proposed modification and the accompanying fact

sheet/ ambient air quality impact report are also available for review at the Shasta County Air Quality Management District at 1855 Placer St., Suite 101 in Redding, CA 9600 1, and the Redding Public Library at 1100 Parkview Ave. in Redding, CA 96001

.

All comment s 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 disclo sure isrestricted 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 captu red 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.

EPA will consider all written and ora l comments submitted during the public comment period before taking final action on the PSD permit modification and will send notice of the final decision to each person who submitted comments and contact information during the public comment period or req uested notice of the final permit decision. EPA will respond to all 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 specified in the decision; or

2. The decision is appealed to EPA’s Environmental Appeals Board pursuant to 40

CFR Part 124.19; 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 issues a final decision granting the PSD permit for th is modification , and there is no appeal, construction of the modification may commence, subject to the conditions of the PSD

perm it and other applicable permit and legal requirements.

If you have questions, please contact Omer Shalev at (415) 972

- 3538 or e

- mail at R9airpermits@epa.gov. If you would like to be added to our mailing list to receive future information about this propos ed permit decision or other PSD permit decisions issued by EPA Region 9, please contact Omer Shalev at (415) 972

- 3538 or send an e

- mail to 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.