Pio Pico Energy Center, LLC

do Energy Investors FundsThree Charles River Place

63 Kendrick Street, Suite 101

Needham, MA 02494

Re: Final Permit Decision for Pio Pico Energy Center, PSD Permit No. SD 11-01

Dear Mr. Jenkins:

The United States Environmental Protection Agency (EPA) Region 9 is hereby issuing and

providing you with notice of its final permit decision granting PSD Permit No. SD 11-01 to the

Pio Pico Energy Center, LLC for the Pio Pico Energy Center.

EPA Region 9 initially issued a final decision on this permit application on November 19, 2012

under 40 C.F.R. § 124.15. After petitions for review ofRegion 9’s decision were filed withEPA’s Environmental Appeals Board (EAB), on August 2, 2013, the EAB remanded the permit

to Region 9 in part, directing Region 9 to revise its BACT analysis for the particulate matteremission limits for the PPEC and to solicit public comment on its revised analysis. See In re Pio

Pico Energy Center PSD Permit No. SD 11-01, PSD Appeal Nos. 12-04 through 12-06 (EAB,Aug. 2, 2013) (Order Remanding in Part and Denying Review in Part).

The Board’s decision also stated that once Region 9 issues a final permit decision following the

public conunent period required by the remand, the Region’s final permit decision and the

Board’s decision in this matter become final agency action subject to judicial review per 40 CFR

124.19(1). The Board’s decision noted that although an appeal to the Board is a prerequisite to

judicial review of an initial final permit decision, such an appeal is not a prerequisite to judicial

review of a final permit decision following a Board remand of a permit decision unless the Board

“specifically provides that appeals ofthe remand decision will be required to exhaust

administrative remedies.” The Board’s decision further stated that the Board is not requiring, and

will not accept, an appeal to the Board ofthe final permit decision for the Project followingremand in this case.

In response to the EAB’s remand decision, Region 9 prepared a revised particulate matter BACT

analysis and BACT determination for the emission limits for the Project’s combustion turbines inaccordance with the Board’s order, and proposed revised permit conditions for such limits. In

November of 2013, Region 9 issued a public notice seeking public comment on this revised

analysis and these revised particulate matter permit conditions, and the Region also held a public

hearing on December 17, 2013 to receive such comment.

Pnnred on Recycled Paper
As EPA Region 9 has completed the remand proceedings in response to the EAB

s Order, we are

now issuing our final permit decision granting a PSD permit to PPLLC for the PPEC, PSD

Permit No. SD 11-01. In accordance with 40 C.F.R. § 124.19(l)(2), this letter serves as the final

permit decision by EPA Region 9 for this permit. All conditions of PSD Permit No. SD 11-01, as

issued by Region 9 on February 28, 2014, will be final and effective on April 7, 2014.

Public notice ofthis final agency action will be published in the Federal Register pursuant to 40

C.F.R. § 124.19(l)(3). Pursuant to section 307(b)(1) of the Clean Air Act, 42 U.S.C. §7607(b)(1), judicial review of this final permit decision, to the extent it is available, may be

sought by filing a petition for review in the United States Court of Appeals for the Ninth Circuit

within 60 days of publication of notice ofthis final permit decision in the Federal Register.

If you have any questions regarding this matter, please contact Lisa Beckham ofthe Permits

Office at (415) 972-3811 or beckham.lisaepa.gov.

cc: Steve Hill, Sierra Research (via email)

Tom Weeks, San Diego County APCD (via email)Eric K. Solorio, California Energy Commission (via email)

Michael Tolistrup, California Energy Commission (via email)

Det

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