### AMENDED PREVENTION OF SIGNIFICANTDETERIORATIONPERMIT ISSUED PURSUANT TO THE REQUIREMENTS AT 40 CFR § 52.21 

## u.s. ENVIRONMENTAL PROTECTION AGENCY PSD PERMIT NUMBER: S1 08-01 

### PERMITTEE: Avenal Power Center, LLC 500 Dallas Street, Level 31 Houston, Texas 77002 

### FACILITYNAME: Avenal Energy Project 

### FACILITY LOCATION: 33119 Avenal CutoffRoad

. Avenal, California 93204 Pursuant to the provisions ofthe Clean Air Act (CAA), Subchapter I, Part C (42 U.S.C. Section 

### 7470, et. seq.), and the Code ofFederal Regulations (CFR) Title 40, Section 52.21, the United States Environmental Protection Agency (EPA) is issuing an amended

### Prevention of Significant Deterioration (PSD) permit to the Avenal Power Center, LLC (APC). The Permit applies to the construction and operation ofa new 600 megawatt (MW, nominal) natural gas-fired combinedcycle powerplantknown as the Avenal Energy Project (AEP) in Avenal, California. This Amended PSD Permit revises the PSD permit issued to APC on May 27,2011, with the revisions applicable immediately. APC is authorized to construct and operate the AEP powerplant as described herein, in accordance with the permit application (and plans submitted with the permit application),the federal PSD regulations at 40 CFR § 52.21, and other terms and conditions set forth in this PSD Permit. Failure to comply with any condition or term set forth in this PSD Permit may result in enforcement action pursuant to Section 113 ofthe Clean Air Act. This PSD Permit does not relieve APC from the responsibility to comply with any other applicable provisions ofthe Clean Air Act (including applicable implementing regulations in 40 CFR Parts 51, 52, 60, 61, 63, and 72 through 75), or other federal, state, and San Joaquin Valley Air Pollution Control District (District) requirements. Per 40 CFR § 124.15(b), this PSD Permit becomes effective 30 days after the service ofnotice of the final permit decision on May 27,2011 unless review is requested onthe permitpursuant to 40 CFR 

### § 124.19.

cCarthy Date Assistant Administrator

### AVENAL ENERGY PROJECT (SJ 08-01) PREVENTION OF SIGNIFICANT DETERIORATION PERMIT AMENDED FINAL PERMIT CONDITIONS
PROJECT DESCRIPTION The Facility is a combined-cycle power plant capable ofgenerating up to 600 megawatts (MW, nominal) ofnet power. Electrical power will be generated from the combustion ofnatural gas in two 180 MW (nominal) combustion turbine generators (CTG). Exhaust from each gas turbine will flow through a dedicated Heat Recovery Steam Generator (HRSG) to produce steam to power a shared 300 MW (nominal) Steam Turbine Generator (STG). Each HRSG will be equipped with natural gas-fired duct burners to augment steam production during peaking operation. Each ofthe CTGs will be equipped with dry 10w-NOx (DLN) combustors

. The Facility will install selective catalytic reduction (SCR) and oxidation catalyst (Ox-Cat) systems. Additionat equipment includes a natural gas-fired auxiliary boiler, which is used to provide steam for auxiliary purposes such as when the plantis off-line or during sta11up, equipped with an ultra 10w-NOx burner, a natural gas-fired emergency generator equipped with a postcombustion integrated SCRloxidation catalyst system, and a diesel-fired emergency firewater pump engine with a turbocharger and an intercoolerlaftercooler

. The Facility is subject to the Prevention ofSignificant Deterioration (PSD) Program for emissions ofCarbon Monoxide (CO), Nitrogen Dioxide (N02), 

### PaI1icuiate Matter (PM), and Particulate Matter ofless than or equal to 10 micrometers (!-tm) in diameter (PM 10). 

### EQUIPMENT LIST The following devices are subject to this PSD permit:



### Unit ID Description • 180 MW CombustionTurbine Generator (CTG), with a maximum heat input rate of l,856.3 MMBtulhr,

. high heating value (HHV) • Natural gas-fired General Electric Model Frame7FA GENl • Vented to a dedicated Heat Recovery Steam Generator (HRSG) and a 300 MW Steam Turbine Generator (STG) shared with GEN2 • Emissions ofNOx 

### and CO controlled by Dry Low-NOx 

### (DLN) Combustors, Selective Catalytic Reduction (SCR), and an Oxidation Catalyst (Ox-Cat) • 180 MW CTG, with a maximum heat input rate ofl,856.3 MMBtu/hr (HHV) • Natural gas-fired General Electric Model Frame 7FA GEN2 • Vented to a dedicated HRSG and a 300 MW STG shared with GENl • Emissions ofNOx 

### and CO controlled by DLN combustors, SCR and an Ox-Cat

2 Avenal EnergyProject (SJ 08-0/ ) Amend edPSDPermit June 20//

### Unit ID Description DBI 

## • 562.26 MMBtulhr (HHV) Duct Burner for GENl, fired on natural gas DB2 

## • 562.26 MMBtu/hr (HHV) DuctBurner for GEN2, fired on natural gas Dl 

# • 37.4 MMBtu/lU' (HHV) Auxiliary Boilerwith ultra 10w-NO burner, fired on x natural gas 

# • 550 kW (860 hp) Emergency Internal Combustion (IC) Engine, fired on natural gas D2 

# • Emissions ofNOx and CO controlled by post-combustion integrated SCRIoxidation catalyst system D3 

# • 288 hp Emergency Diesel-fired IC Engine FirewaterPump Engine 

## • Equipped with a turbocharger and an intercooler/aftercooler


### PERMIT CONQITIONS I. PERMIT EXPIRATION As provided in 40 CFR § 52.21(r), this PSD Permit shall become invalid ifconstruction: A. is not commenced (as defined in 40 CFR § 52.21(b)(9)) within 18 months after the approval takes effect; or B. is discontinued for a period of 18 months or more; or C. is not completed within a reasonable time.


### II. PERMIT NOTIFICATION REQUIREMENTS Permittee shall notify EPA Region IX by letter or by electronic mail ofthe: A
. date construction is commenced, postmarked within 30 days ofsuch date; B. actual date ofinitial startup, as defined in 40 CFR § 60.2, postmarked within 15 days ofsuchdate; C. date upon which initial performance tests will commence, in accordance with the provisions ofCondition x.G, postmarked not less than 30 days prior to such date. Notification may be provided with the submittal ofthe performance test protocol required pursuant to Condition X.G; and D
. date upon which initial performance evaluation ofthe continuous emissions monitoring system (CEMS) will commence in accordance with 40 CFR §
3 AvenalEnergyProject (SJ 08-01) AmendedPSD Permit June 201J60.13(c), postmarked not less than 30 days prior to such date. Notification may be provided with the submittal ofthe CEMS performance test protocol required pursuant to Condition X.F.



### III. FACILITY OPERATION At all times, including periods ofstartup, shutdown, shakedown, and malfunction, Permittee shall, to the extent practicable, maintain and operate the Facility including associated air pollution control equipment in a manner consistent with good air pollution control practice for minimizing emissions. Determination ofwhether acceptable operating and maintenance procedures are being used will be based on information available to the EPA, which may include, but is not limited to, monitoring results, opacity observations, review ofoperating maintenance procedures and inspection ofthe Facility.



### IV. MALFUNCTION REPORTING A. Permittee shall notify EPA at R9.AEO@epa.gov within two (2) working days following the discovery ofany failure ofair pollution control equipment, process equipment, or ofa process to operate in a normal manner, which results in an increase in emissions above the allowable emission limits stated in Section X of this permit. B
. In addition, Permittee shall provide an additional notification to EPA in writing or electronic mail within fifteen (15) days ofany such failure described under Condition IV.A. This notification shall include a description ofthe malfunctioning equipment or abnormal operation, the date ofthe initial malfunction, the period oftime over which emissions were increased due to the failure, the cause ofthe failure, the estimated resultant emissions in excess of those allowed in Section X, and the methods utilized to mitigate emissions and restore nOlmal operations. C. Compliance with this malfunction notification provision shall not excuse or otherwise constitute a defense to any violation ofthis permit or any law or regulation such malfunction may cause.

V. 

### RIGHT OFENTRY The EPA Regional Administrator, and/or an authorized representative, upon the presentation ofcredentials, shall be permitted: A. to enterthe premises where the Facility is located or where any records are

4 Avenal Energy Project (50; 08-0I) AmendedPSD Permit June 20IIrequired to be kept under the terms and conditions ofthis PSD Permit; B. during normal business hours, to have access to and to copy any records required to be kept underthe terms and conditions ofthis PSD Permit; C. to inspect any equipment, operation, or method subject to requirements in this PSD Permit; and D. to sample materials and emissions from the source(s).


### VI. TRANSFER OF OWNERSHIP In the event ofany changes in control or ownership ofthe Facility to be constructed, this PSD Permit shal1 be binding on all subsequent owners and operators. Permittee shall notify the succeeding owner and operator ofthe existence ofthis PSD Permit and its conditions by letter, a copy ofthat shaH be forwarded to EPA Region IX within thirty (30) days.



### VII. SEVERABILITY The provisions ofthis PSD Permit are severable, and, ifany provision ofthe PSD Permit is held invalid, the remainder ofthis PSD Permit shal1 not be affected.


### VIII. ADHERENCE TO APPLICATION AND COMPLIANCE WITH OTHER ENVIRONMENTALLAWS Permittee shall construct this project in compliance with this PSD permit, the application on which this permit is based and all other applicable federal, state, and local air quality regulations

. This PSD permit does not releasethe Permittee from any liability for compliance with other applicable federal, state and local environrnentallaws and regulations, including the Clean Air Act.



### IX. RESERVED

5 AvenalEnergyProject ( SJ O B

-OJ ) Amend ed PSD Permit June 201 I

## x. SPECIAL CONDITIONS A. Annual Facility Emission Limits 1. Annual emissions, in tons per year (tpy) on a 12-month rolling average basis, shall not exceed the following: 

### CO 

### PM PMIO 

### Total Facility 144.3 tpy 602.7 tpy 80.7 tpy 80.7 tpy 2. Only Public Utilities Commission (PUC)-quality pipeline natural gas shall be fired at this Facility. PUC-quality pipeline natural gas shall not exceed a sulfur content of0.36 grains per 100 dry standard cubic feet on a 12-month rolling average basis and shall not exceed a sulfur content of 1.0 grains per 100 dry standard cubic feet, at any time. 

### B. Air Pollution Control Equipment and Operation As soon as practicable following initial startup ofthe power plant (startup as defined in 40 CFR 

### § 60.2) but prior to commencement ofcommercial operation (as defined in 40 CFR 

### § 72.2), and thereafter, except as noted below in Condition X.D, the Permittee shall install, continuously operate, and maintain: (1) the SCR systems for control ofNOx and the Ox-Cat systems for control ofCO for Units GENI and GEN2, and (2) the post-combustion integrated SCRJoxidation catalyst system for control ofNOxand CO for D2
. Permittee shall also perform any necessary operations to minimize emissions so that emissions are at or below the emission limits specified in this permit. 

### C. Combustion Turbine Generator (CTG) Emission Limits 1. Except as noted below under Condition X.D, on and after the date ofinitial startup, Permittee shall not discharge or cause the discharge ofemissions from each CTG Unit (ofGENl and GEN2) into the atmosphere in excess ofthe following:

6 AvenalEnergy Project (SJ 08-0J) AmendedPSD Permit June 2011

### NOx



### CO



### PM/PMIO Emission Limit (perCTG) (no duct burning) 

# • 13.55 lb/hr 

# • I-hr average 

# • 2.0 ppmvd 

### @ 15% O2 

### 3 -Year Demonstration Period



# • 8.351blhr 

# • I-hr average 

# • 2.0 ppmvd 

### @ 15% O2 

### Post-Demonstration Period



# • 6.271b/hr 

# • 1-hr average 

# • 1.5 ppmvd 

### @ 15% O2 

### Conditions in X.C.3 may affect the timing and applicability of post-demonstrationperiod emission limits.



# • 8.91 lb/hr 

# • 12-month rolling average 

# • PUC-quality pipeline natural gas Emission Limit (perCTG) (with duct burning) 

# • I7.201b/hr 

# • I-hr average 

# • 2.0 ppmvd 

### @ 15% O2



# • 10.601b/hr 

# • I-hr average 

# • 2.0 ppmvd 

### @ 15% O2



# • 11.78 lb/hr 

# • 12-month rolling average PUC-quality pipeline 

# • natural gas
2. Annual heat input to each duct burner (DB 1 and DB2) shall not exceed 449,800 MMBtu per 12-month rolling period. The Permittee shall ensure that the duct burners are not operated unless the associated turbine units are in operation. 3. CO Emissions Limit Demonstration Period

- The Demonstration Period is defined as the first 3 years immediately following the commencement of commercial operations.

a. The Permittee shall design the gas turbines to achieve a CO emission rate of 1.5 ppmvd 

### @ 15% O2 

### and 6.27 lb/hr

### over a I-hourperiod without duct firing. Prior to construction, the Permittee shall submit design specifications to EPA as proofthat the gas turbines were designed to achieve such a rate. The Permittee shall also submit a plan to EPA that sets

7 AvenalEnergy Project (SJ DB-OJ) AmendedPSD Permit June 2011forth the measures that will be taken to maintain the system and optimize its performance. b. During the Demonstration Period, the Permittee shall operate the gas turbines according to the design specifications, within the design parameters, and consistent with the maintenance and performance optimization plan described above in Condition X.C.3.a. During the Demonstration Period the Permittee shall not discharge or cause the discharge ofCO emissions from each CTGUnit (GEN

### I and GEN2) into the atmosphere in excess ofthe following amounts over a 1-hour averaging period: 2.0 ppmvd CO 

### @ 15% 

### 02 and (1) 10.60 Ib/hrwith duct firing or (2) 8.35 lb/hrwithout duct firing.

c. Following the Demonstration Period, the Permittee shall not discharge or cause the discharge ofCO emissions from each CTGUnit (GEN1 and GEN2) into the atmosphere in excess ofthe following amounts over a 1­ hour averaging period except as specified in Condition X.C.3.d:

1. 1.5 ppmvd 

### @ 15% 

### 02 without duct firing; 11. 2.0 ppmvd 

### @ 15% O2 with duct firing; iii. 6.271b/hrwithout duct firing; and iv. 10.60 lb/hr with duct firing. d. If, during the Demonstration Period, the Permittee determines that the CO limits in Conditions X.C.3.i or X.C.3.iii are not feasible, the Permittee shall submit an application to EPA prior to the end ofthe Demonstration Period requesting a revision ofthose limits. Such an application must contain data and information that demonstrates that the Facility was operated according to the design specifications and parameters, and the maintenance and performance optimization plan, identified above in Condition X.C.3.a, as well as a technicaljustification explaining why the lower limits are notfeasible. If, after the applicable review process following such a submission (which will include an opportunity for public review and comment), it is determined through data and information gathered during the Demonstration Period that different CO limits are necessary, the limits in Condition X.C.3.i and X.C.3.iii will be revised accordingly. Provided thatthe application specified in this condition is postmarked prior to the end ofthe Demonstration Period, the emission limits in ConditionX.C.3.b shall remain in effect until EPA evaluates the application and makes a final decision regarding the revision ofthe limits in Conditions X.C.3.i or X.C.3.iii. 8 AvenalEnergyProject (SJ 08-01) AmendedPSDPermit June 201/

### D. Requirements during Gas Turbine (GENt and GEN2) Startup and Shutdown 1. Startup is defined as the period oftime during which a unit is brought from a shutdown status to its operating temperature and pressure, including the time required by the unit's emission control system to reach full operations and demonstrate compliance with Conditions X.C. 2. Shutdown is defined as the period beginning with the lowering ofequipment from normal operating load to minimum operating load and lasting until fuel flow is completely offand combustion has ceased. 3. During startup and shutdownperiods emissions from each CTO and associated HRSO unit, verified by the CEMS, shall not exceed the following: 

### NOx 

### CO Each CTG and HRSG 160lblhr 1,0001b/hr 

### Startup I 

### Shutdown Both CTG and HRSG Combined 240lb/hr 1,902 Ib/hr 

### Startup I

### Shutdown
Event Duration Annual Limit for Both CTG Combined Each CTG and HRSG Startup 4.50 hours 

### 1,248 hours/yr Each CTG and HSRG Shutdown 0.50 hour
4. The Permittee must operate the CEMS during startups and shutdowns. 5. The Permittee must record the time, date, and duration ofeach startup and shutdown event. The records must include calculations ofNOx and CO emissions during each event based on the CEMS data. These records must be kept for five years following the date ofsuch event. 6. During startup, the CTO and HRSG emissions shall comply with Condition
9 Avenal Energy Project (SJ08-0/) AmendedPSD Permit June 2011X
.D.3, and the SCR system, including ammonia injection, shall be operated in a manner to minimize emissions, as technologically feasible, and not later than when the load reaches 60% ofplant net output. E. Auxiliary Combustion Equipment Emission Limits I. At all times, including equipment startup and shutdown, Permittee shall not discharge, or cause the discharge ofemissions from each unit into the atmosphere, in excess ofthe following: Restrictions on Unit ID CO PM and PMIO NO" Usage UnitDl • 	 9 ppmvd@ • 50 ppmvd@ • 0.0034 gr/dscf • 46,675 3%02 3%02 MMBtu/yr 37.4MMBtulhr • PUC-quality (HHV) Boiler • 3-hr average • 3-hr average pipeline natural gas 

# • 1.0 g/hp-hr • 0.21 g/hp-hr 

# • PUC-quality 

## • 50 hrs/yr UnitD2 pipeline natural 550 kW (860 hp) gas engine 

### 0.34 g/hp-hr 

# • UnitD3 • 3.4 g/hp-hr • 0.447 g/hp- 

# • Use ofultra-low 

## • 50 hrs/yr 288 hp firewater hr sulfurfuel, not to pump exceed 15 ppmvd fuel sulfur 2. Unit DI shall not operate during normal operations ofGENI or GEN2, except during periods of, or immediately following, startup. Unit D 1 shall be shut down as soon as practicable after the completion ofany startup process as defined in Condition X.D.I. 3
. Unit D2 restrictions on usage shall be limited to operation ofthe engine for all maintenance and testing. 4. Unit D3 restrictions on usage shall be limited to the total hours ofoperations for all maintenance and testing. 5. Units D2 or D3 shall not operate during startup ofGENI or GEN2, except when Units D2 orD3 are required for emergency operations.

10 AvenalEnergy Project (SJ 08-0J) AmendedPSD Permit June 2011F. Continuous Emissions Monitoring System (CEMS) for GENI and GEN2 

### 1. At the earliest feasible opportunity after first fire ofGEN1and GEN2 and before GENI and GEN2 commence commercial operation (as defined in 40 CFR 

### § 72.2), in accordance with the recommendations ofthe equipment manufacturer and the construction contractor, Permittee shall install calibrate 

### , , and operate a CEMS each for GENI and GEN2 that measures stack gas NOx, CO, and O2 or CO2 concentrations in ppmv. The concentrations shall be corrected to 15% 

### 0 2on a dry basis. No later than the end ofthe shakedown period as defined in Condi60n X.J. or upon commencing commercial operations, whichever comes first, Permittee shall also maintain, certify, and quality-assure a CEMS for each CTG that measures stack gas NOx, CO, and O2 concentrations in ppmv, and shall is required to conduct initial certification ofthe CEMS in accordance with Condition X
.F.6. The concentrations shall be corrected to 15% O2 on a dry basis. 2
. TheNOx and O2 CEMS shall meet the applicable requirements of40 CFR Part 75. 3. The CO CEMS shall meet the applicable requirements of40 CFRPart 60 Appendix B, Performance Specification 4, and 40 CFRPart 60 Appendix F, Procedure 1, except the relative accuracy specified in section 13.2 of40 CFR Part 60 Appendix B, Performance Specification 4 shall not exceed 20 percent. 4. Each CEMS shall complete a minimum ofone cycle ofoperation (sampling, analyzing, and data recording) for each successive IS-minute clock-hour period. 5. The CEMS shall be tested in accordance with Conditions X.F.2 and X.F.3. 6. The initial certification ofthe CEMS may either be conducted separately, as specified in 40 CFR § 60.334(b)(1) or as part ofthe initial performance test of each emissionunit. CEMS must undergo and pass initial performance specification testing on or before the date ofthe initial performance test. 7. CEMS shall meet the requirements of40 CFR § 60
.13. Data sampling, analyzing, and recording shall also be adequate to demonstrate compliance with emission limits during startup and shutdown. 8. Not less than 90 days priorto the date ofinitial startup ofthe Facility, the Permittee shall submit to the EPA a quality assurance project plan for the certification and operation ofthe continuous emission monitors. Such a plan

II Avenal Energy Project (SJ 08-01) Amend ed PSD Permit June 2011shall conformto requirements contained in 40 CFR 60 Appendix F CO, 40 CFR Part for NOx and or CO2, and 40 CFR Part Appendix B for flow. Theplan shall be updated and resubmitted upon by Theprotocol shall specify during startups and shutdowns will determined and calculated, including flow ifcalculations are used. 9. gasturbine shall audited quarterly and tested annually in accordance with 40 CFR 60 Appendix F, Procedure 1. Permittee shall perform a stack traverse initial run ofannual RATA ofthe with points selected to 40 CFR Part Appendix A, Method 

### 1. 10. performance test protocol to no later prior to to allow review of test plan and to for an observer to be at test. performance test shall conducted in accordance with submitted protocol and by EPA. 11. Permittee shall furnish the a written the results ofperformance tests within 60 days ofcompletion. 12. The volumetric flow rates calculated in with fuel flowmeter requirements of40 CFR Part D in combination with the appropriate of Method 19. ofGEN1 and shall and operate, continuous monitoring recording systems to measure and record the following operational parameters:

a. The ammonia injection rate ofthe ammoniainjection system ofthe

b. plant output as noted in ConditionX.D.6.


### Performance 1. Tests a. Within 60 days achieving normal operation, butnot later than 180 days after the initial start-up ofequipment, and, unless otherwise annually thereafter (within 30 days the initial performance test 12 Avenal Project 08-0J) AmendedPSD Permit June 2011armiversary), Permittee shall conductperformance tests (as described in 40 CFR 

### § 60
.8) as follows : 1. NOx, CO, PM, and PMIO emissions from each gas turbine (Units GENIIDB1 and GEN2/ DB2), II. NOx, and CO emissions from the 37.4 MMBtulhr boiler (01); PM and PMIO emissions from the 37.4 MMBtulhr boiler (D1) shall be tested initially and at least every five years (within 30 days ofthe initial performance test anniversary) iii. NOx , CO, PM, and PM10 emissions from the 550 

### kW (860 hp) internal combustion engine (D2), only upon notification by EPA iv. NOx , CO, PM, and PM IO emissions from the 288 hp firewater pump (D3), only upon notification by EPA b

. Permittee shall submit a performance test protocol to EPA no later than 30 days priorto the test to allow review ofthe test plan and to arrange for an observer to be present at the test. The performance test shall be conducted in accordance with the submitted protocol, and any changes required by EPA. c. Performance tests shall be conducted in accordance with the test methods set forth in 40 CFR § 60
.8 and 40 CFR Part 60 Appendix A, as modified below. In lieu ofthe specified test methods, equivalent methods may be used withprior written approval from EPA: 1. EPA Methods 1-4 and 7Efor NOx emissions measured in ppmvd II. EPA Methods 1-4, 7E, and 19 for NOx emissions measured on a heat input basis iii. EPA Methods 1-4 and 10 for CO emissions
IV
. EPA Methods 5 and 202, or Methods 20lA and 202, for both PM and PMIO, in accordance with the test methods set forth in 40 CFR 

### § 60.8, 40 CFRPart 60 Appendix A, and 40 CFRPart 51 Appendix M
. In lieu ofMethod 202, the Permittee may use EPA Conditional Test Methods for particulate**matter~** CTM-039. v. the provisions of40 CFR 

### § 60.8 (t). d. The initial performance test conducted after initial startup shall use the test procedures for a "highN02 emission site," as specified in San Diego Test Method 100, to measure NOx emissions. The source shall be classified as either a "low" or "high" N02 emission site based on these test results. If the emission source is classified as a: 1. "high N02 emission site," then each subsequentperformance test shall 13 Avenal Energy Pro ject (SJ 08-01) AmendedPSD Permil June 2011use the test procedures for a "high N02 site," as 

### m San Method 100. "low N"02 emission site," then the test for a "high " as specified San Method 100, shall performed once years to the classification as a "lowN02 emission site." e. The test methods for NOx emissions Condition X.G.l modified as follows: 1. Perform a minimum of9 method runs, with a minimum perrun 

### 21 minutes, at a single load level, between 90 and 100 of (or the highest physically achievable) both to demonstrate compliance with the applicable NOxemission limit to provide the required method data for the ofthe 

### f. Upon written and adequatejustificationfrom the may waive a specific test and/or allow for to than

. operating capacity. g. For performance test purposes, sampling ports, platforms, and access shall provided on emission unit exhaust in accordance with the requirements of40 CFR 

### § 60.8(e). h. Permittee shall furnish the a written report ofthe tests within 60 ofcompletion

.. 2. Fuel Testing a. Permittee shall take monthly samples the natural combusted. The samples shall be for sulfur content using an ASTM method. The sulfur content test results shall be retained on site and taken to ensure compliance with Conditions and for Units 1, 

### DI, and 

### H. Monitoring for Auxiliary Combustion Equipment 

### 1. Permittee shall install and maintain an operational non-resettable totalizing mass or volumetric flow meter in each fuel line for the 37.4 MMBtu

### Ihr boiler (Unit Dl). 2. Permittee shall install and maintain an operational non-resettable time meter the 550 kW emergency use engine (Unit and the 288 hp

14 Avenal (SJ 08-0J) AmendedPSD Permit June 201Iemergency-use firewater pump (Unit D3). 

### 1. Recordkeeping and Reporting 1. Permittee shall maintain a file ofall records, data, measurements, reports, and documents related to the operation ofthe Facility, including, but not limited to, the following: all records or reports pertaining to adjustments and/or maintenance performed on any system or device at the Facility; all records relating to performance tests and monitoring ofauxiliary combustion equipment; for each diesel fuel oil delivery, documents from the fuel supplier certifying compliance with the fuel sulfur content limit ofSpecial Condition X.E for Unit D3; and all other information required by this permit recorded in a permanent form suitable for inspection. The file mustbe retained for not less than five years following the date ofsuch measurements, maintenance, reports, and/or records. 2. Permittee shall maintain CEMS records that include the following: the occurrence and duration ofany startup, shutdown, shakedown, or malfunction, performance testing, evaluations, calibrations, checks, adjustments, maintenance, duration ofany periods during which a continuous monitoring system or monitoring device is inoperative, and corresponding emission measurements. 3. Permittee shall maintain records ofall source tests and monitoring and compliance information required by this permit. 4. Permittee shall maintain records and submit a written report ofall excess emissions to EPA semi-annually, except when: more frequent reporting is specifically required by an applicable subpart; or the Administrator, on a caseby-case basis, determines that more frequent reporting is necessary to accurately assess the compliance status ofthe source. The report is due on the 30th day following the end ofeach semi-annual period and shall include the following: a. Time intervals, data and magnitude ofthe excess emissions, the nature and cause (ifknown), corrective actions taken and preventive measures adopted; b. Applicable time and date ofeach period during which the CEMS was inoperative (monitor down-time), except for zero and span checks, and the nature ofCEMS repairs or adjustments; c. A statement in the report ofa negative declaration; that is, a statement 15 AvenalEnergy Project (SJ 08-0/) AmendedPSD Permit June 20/ /when no excess emissions occurred or when the CEMS has not been inoperative, repaired, or adjusted; d. Any failure to conduct any required source testing, monitoring, or other compliance activities; and e. Any violation oflimitations on operation, including but not limited to restrictions on hours ofoperation. 5
. Excess emissions shall be defined as any period in which the Facility emissions exceed the maximwn emission limits set forth in this permit. 6
. A period ofmonitor down-time shall be any unit operating clock hour in which sufficient data are not obtained to validate the hour for NOx, CO or 0 2, while also meeting the requirements ofConditionX.F.7. 7
. Excess emissions indicated by the CEM system, source testing, or compliance monitoring shall be considered violations ofthe applicable emission limit for the purpose ofthis permit. 8
. All records required by this PSD Permit shall be retained for not less than five years following the date ofsuch measurements, maintenance, and reports. J. Shakedown Periods The combustion turbine emission limits and requirements in Conditions X.C, X.D, and X.E shall not apply during combustion shakedown periods. Shakedown is defined as the period beginning with initial startup and ending no later than initial performance testing, during which the Permittee conducts operational and contractual testing and tuning to ensure the safe, efficient and reliable operation of the plant. The shakedown period shall not exceed 90 days. The requirements of Section III ofthis permit shall apply at all times.

16 AvenalEnergyProject (SJ 08-0/) AmendedPSDPermit June 20//

### XI. ACROY!,;MS AND ABBREVIATIONS
APCD ASTM Btu

DLN (d)scf EPA g
hp hr 

### kW lbs MMBtu 

### MW N02 NOx NSCR OTM Ox-Cat 

### O

2 PM PM lO ppmvd ppmv PUC RATA
tpy

Avenal Project AmendedPSD Permit June 2011 Energy Project Air Pollution Control District American Society for and Materials Thermal Unit
Carbon Monoxide Combustion Joaquin Valley Dry Low (dry) Standard Cubic Protection Agency GramsHeating Recovery Steam Generator Hour Kilowatt Pounds Million Units Megawatt Nitrogen Dioxide Oxides Non-Selective Catalytic Reduction Other Method Oxidation Catalyst Total Particulate Matter Particulate Matter with aerodynamic diameter than 10 micrometers Per Million Volume, Dry basis Parts PerMillion by Volume ofSignificant Public Utilities Commission Relative Audit Selective Catalytic Reduction Steam Turbine Tons Year Year
17 08-0J)

### XII. AGENCY NOTIFICATIONS All correspondence as required by this Approval to Construct must be forwarded to: A. Director, Air Division (Attn: AIR-5) EPA Region IX 75 Hawthorne Street San Francisco, CA 94105-3901 Email: R9
.AEO@epa.gov Fax: (415) 947-3579 B. Air Pollution Control Officer San Joaquin Valley Air Pollution Control District 1990 E. Gettysburg Avenue Fresno, CA 93726-0244 Email: sjvapcd@valleyair.org Fax: (559) 230-6061

18 AvenalEnergy Project (Sf 08-0J) AmendedPSD Permil June 20JJ