## Avenal Power Center, LLC 500 Dallas Street, Level 31 Houston, TX 77002

December 19, 2012 ______



# IEC1EVE DEC 262012 Gina McCarthy Assistant Administrator

— Office ofAir and Radiation U.S. Environmental Protection Agency 1200 PennsylvaniaAvenue Washington, DC 20460 Subject: Application for Extension ofthe PSD Permit for the Avenal Energy Project Dear Ms. McCarthy: Avenal Power Center, LLC (APC) hereby requests the U.S. Environmental Protection Agency (EPA) for an 18-month extension ofthe Prevention ofSignificant Deterioration (PSD) permit for the Avenal Energy Project. This application is submitted in compliance with PSD regulations.’ The key relevant dates for issuance ofthe culTent PSD permit follow. On May 27, 2011, EPA issued the PSD permit for the Avenal Power Center, and amended the permit for typographical eiors on June 21, 2011. Fourpetitions forreview were filed. On August 18, 2011, EPA’s Environmental Appeals Board denied review ofthese petitions; on that date, the PSD permit became effective and final. 2 This application is being submitted at this time because the PSD approval to construct becomes invalid if“construction is not commenced within 18 months afterreceipt of such approval, ifconstruction is discontinued for aperiod of 18 months or more, or if construction is completed within a reasonable time.” 3 Avenal’s approval to construct will become invalid on February 18, 2013 (18 months after it became effective), unless construction commences orthe Administrator extends the preconstruction period. Under EPA regulations, “{t]he Administrator may extend the 1 8—month period upon a satisfactory showing that an extension is justified.” 4 Goodreason exists for why construction has not yet commenced, and will not commence by February 18, 2013, and for the Administrator to extend the 1 8-month period because ofthe “satisfactory showing that an extension isjustified” in this letter.

40 CFR 52.2 1(r)(2) 276 FR 55799 (September9. 2011). 40 C’FR 52.2 1(r)(2)

40 CFR 52.21 (r)(2) 40 CFR 52.21 (r)(2) 12ft445SMs. GinaMcCarthy December 18, 2012
The current litigation before the U.S. Court ofAppeals forthe Ninth Circuit, Sierra 

### Club, et a!. vs. UnitedStates EnvironmentalProtection Agency, et a!, 

### andAvenal Poi’er Center, LLC and ElPueblo Pam El ilire YAgiiaLinipio v. UnitedStates Environmental ProtectionAgency; et. a!, Nos. 1173342 and 11-73356 (On Petition forReview ofa Clean AirAct Permit Issued bythe United States Environmental Protection Agency) (collectively “Sierra Club v. EPA”) is expected to take at least several months to be resolved, well beyond the February 18, 2013 expiration date ofthe current PSD permit. APC asked the court to expeditehearing on the permit appeal in an effortto obtain a decision priorto the expiration ofthe current PSD Permit. (Respondent-Intervenor’s Motion to Expedite Hearing, Sierra Club v. EPA, filed May 30, 2012.) The court denied APC’s request leaving the case to proceed through the court in accordance with the standard court calendar. (June 12, 2012 Order, Sierra Club v. EPA.) APC cannot provide arevised anticipated construction schedule forthe project at this timebecause that schedule will, ofnecessity, depend upon the outcome ofthe pending litigation. However, APC anticipates that constructionwill commence within 18 months following a court decision upholding the validity ofthe PSD permit. APC does notbelieve thattherehave been anymaterial changes to BestAvailable Control Technology requirements for facilities ofthis type since the PSD permitbecame effective in August 2011. Furthermore, APC does not believe any substantive, new PSD regulatoryrequirements havebecome effective since the PSD pennitbecame effective in August 2011. APC looks forward to receiving yourresponse to the requested permit extension as soon as possible, butbyJanuary 18, 2013, at the latest, allowing APC to address any concerns before the February 17, 2013 permit expiration date. Ifyou have any questions regarding this application, please don’thesitate to call me at 713-275-6147 or email atjim.rexroaclmacquarie.com. ‘incerely, 

## j\

Jim Rexroad Vice President

cc: Gerardo Rios, Chiet Permits Office, USEPA, Region 9, 75 Hawthorne Street, San Francisco, CA 94105 Dave Warner, Director, Permit Services, SJVAPCD, 1900 E. Gettysburg Avenue, Fresno, CA 93726-0244

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