1. CEC SoCal Electricity Reliability Workshop Environmental Agency Considerations Lisa Beckham, Environmental Engineer, U.S. EPA – Region 9 August 17, 2015

2. Overview EPA’s Role in the Air Permitting Process EPA’s Role in Options 1, 2, and 3 Recommendations and Considerations Contact Info

3. Why would you also need a permit from the EPA? The local air agency does not have a “SIP-approved” PSD program Triggered the PSD program o New facilities: 100 tpy for NGCC, 250 tpy for simple cycle o Existing major facilities: 40 tpy NOx, 15 tpy PM 10, 10 tpy PM 2.5, etc. Federal PSD program applies when no local program is in place (San Diego and South Coast) – called a “FIP” o Additional requirements compared to SIP-approved programs o Delegated Programs – federal PSD program applies, but implementation delegated to local air agency (South Coast) EPA’s Role in the Air Permitting Process

4. What are Some of the Additional Requirements for EPA-Issued PSD Permits ? Federal administrative procedures (“Part 124”) o Includes administrative appeals process (EAB), stays construction until complete Federal judicial appeals process (construction can proceed at o/o risk) o Can take “years” to get a decision Prior to permit issuance must complete other requirements for federal actions, including: o Endangered Species Act (Section 7 Consultation) o National Historic Preservation Act (Section 106 Consultation) o Environmental Justice o See EPA PSD Permit Processing Guidance: http://www.epa.gov/region7/air/nsr/nsrmemos/timely.pdf http://www.epa.gov/region7/air/nsr/nsrmemos/timely.pdf EPA’s Role in the Air Permitting Process

5. How long does it take to get a final PSD permit from EPA? Four Corners Power Plant 60 day comment period, 3 public hearings, significant number of oral and written comments received Applicant held pre-application teleconferences for all government parties involved (EPA, Navajo Nation, etc.) – provided specifics and requested feedback Pio Pico Energy Center Had a PPA prior to final permit, currently under construction, no extension required Palmdale Hybrid Power Project No PPA, requested permit extension, project has changed significantly, expecting new application soon EPA’s Role in Options 1, 2, and 3 Recent Region 9 ProjectsTimelineEAB Process Four Corners Power Plant, Navajo Nation14 monthsNo EAB Appeal Pio Pico Energy Center34 monthsEAB Appeal, Permit Remanded Palmdale Hybrid Power Project42 monthsEAB Appeal, Permit Upheld

6. What should you consider when planning for EPA involvement in the permitting/licensing process? Ideally, EPA would only have an oversight role and/or a project would not trigger the PSD program Delegating the FIP allows EPA to switch to oversight, but still requires the other federal requirements to be met by the local agency All PSD permits are statutorily required to be issued within one year of a complete application (Also applies to SIP-approved programs) Permits issued under the FIP have 18 months to commence construction, which may be extended. Typically, extensions are 18 months or less o Response to extension request is challengeable in federal court o Extensions are most easily justified when there is clear evidence the permitted equipment can commence construction soon EPA’s Role in Options 1, 2, and 3 Are permit extensions an option?

7. Should your EPA PSD permit “sit on the shelf?” Clean Air Act and implementing regulations designed for projects ready to construct – hence the one year deadline EPA decisions to extend the construction deadline are made on a case-by-case basis Challenges to a permit extension may take longer to resolve in court than the length of the extension After a period of time determinations become “stale,” changes to the project are expected, etc. Eventually requires substantive reanalysis and process must start over (although there would be significant overlap) Don’t require one from the EPA in the first place (We are happy to work with San Diego and South Coast on SIP-approved programs) Early, upfront, and ongoing engagement Recommendations and Considerations How do you reduce the time to get a final permit from the EPA?

8. Contact Info EPA Region 9 PSD Permits: http://www.epa.gov/region9/air/permit/r9-permits-issued.html#psd Lisa Beckham Phone: (415) 972-3811 Email: beckham.lisa@epa.govbeckham.lisa@epa.gov The Clean Power Plan is here! http://www2.epa.gov/cleanpowerplan Ray Saracino, EPA Region 9 Phone: (415) 972-3361 Email: saracino.ray@epa.govsaracino.ray@epa.gov