United States Environmental Protection Agency Summary of the Proposed Permit On March 2, 2012, the United States Environmental Protection Agency (EPA) Region IX provided notice of, and requested public comment on, action relating to the proposed minor modification of the Prevention of Significant Deterioration (PSD) permit for the Rio Bravo Poso Cogeneration facility (RBP). The proposed permit modification would grant conditional approval, in accordance with PSD regulations (40 Code of Federal Regulations (CFR) 52.21), to Rio Bravo Poso to include clean cellulosic biomass as a part of its permissible fuel. All existing air emissions limitations at the facility will remain the same, despite the addition of clean cellulosic biomass for fuel use. The mailing address for Rio Bravo is 19100 Von Karman, Suite 570 Irvine, CA 92612. The facility is located at 16608 Porterville Highway in Bakersfield, California. The city of Bakersfield is located within the San Joaquin Air Pollution Control District (District). The public comment period for this proposed permit, which is ongoing, will close on April 3, The additional fuels to be added shall conform to the definition of clean cellulosic biomass as defined in 40 CFR 241.2. In particular, clean cellulosic biomass means those residuals that are akin to traditional cellulosic biomass such as forest-derived biomass {e.g., green wood, forest thinnings, clean and unadulterated bark, sawdust, trim, and tree harvesting residuals from logging and sawmill materials), corn stover and other biomass crops used specifically for energy production {e.g., energy cane, other fast growing grasses), bagasse and other crop residues {e.g., peanut shells), wood collected from forest fire clearance activities, trees and clean wood found in disaster debris, clean biomass from land clearing operations, and clean construction and demolition wood. Clean biomass is biomass that does not contain contaminants at concentrations not normally associated with virgin biomass materials. This document is intended to provide a brief, informal summary of information to assist members of the public of EPA's proposed PSD permit modification. For official permit documents developed in accordance with 40 CFR Part 124 and more details about the permit requirements, refer to EPA's public notice, the proposed permit, and the Ambient Air Quality Impact Report (AAQIR) for this proposed permit action, which are linked to the EPA Region 9 permit website: http:/ /www.epa.gov/region09/a.ir/ permit/r9-permits-issued.html#pubcomment. What Laws and Regulations Apply to EPA's Proposed PSD Permit? We have prepared this proposed permit based on our Prevention of Significant Deterioration regulations issued under the Clean Air Act at 40 CFR 52.21. We believe that the proposed modification will comply with PSD requirements for the pollutants regulated under the permit. We have made this determination based on the information supplied by the applicant, our review of the analyses contained in the permit application, and other relevant information contained in the administrative record for this proposed action. EPA has provided the proposed permit and AAQIR to the public for review, and will make a final decision on the PSD permit application after considering all public comments on our proposal submitted during the public comment period. Environmental requirements from other federal, state, or local laws are not included in this proposed permit unless they are also part of the Clean Air Act PSD program. The modification is required to comply with all other environmental requirements. To this end, Rio Bravo has submitted applications for 2012. 1 Rio Bravo Poso (SJ 85-06) March 2012 ------- local construction approval to the District. The emissions of other air pollutants from the proposed modification, including the pollutants for which the area is not meeting the National Ambient Air Quality Standard (and precursors that lead to the formation of such pollutants), are regulated by the District, which implements the Nonattainment New Source Review permitting program for this area. What Does EPA's Proposed PSD Permit Regulate? The PSD program applies to "major" new sources of attainment pollutants. RBP is currently a major source for oxides of nitrogen (NOx), carbon monoxide (CO), oxides of sulfur (SO^ (PM25), and greenhouse gases (GHG). Once a source is considered major for a PSD pollutant, PSD applies to any other pollutant regulated under the PSD program that is emitted in a significant amount. However, the change in emissions of all criteria pollutants will not result in a significant increase of any attainment pollutant subject to the PSD regulations. Because the area in which RBP is located is designated non- attainment for ozone and PM25, the PSD program does not apply to ozone and this permit modification does not address ozone or PM25. What Other Actions is EPA Taking in Connection with Its Decision making Process? EPA has been engaged in consultation with the U.S. Fish and Wildlife Service under section 7 of the federal Endangered Species Act to ensure that its proposed PSD permit decision for the modification is not likely to jeopardize the continued existence of any federally-listed endangered or threatened species or result in the destruction or adverse modification of critical habitat for such species. EPA concludes that the project will have no likely adverse effect on any endangered or threatened species or designated critical habitat. Discussions with the United States Fish and Wildlife Service support EPA's conclusion. Rio Bravo Poso (SJ 85-06) March 2012 2 ------- |