CEC So Cal Electricity Reliability Workshop Environmental Agency

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

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

EPA’s Role in the Air Permitting Process 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 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/region 7/air/nsrmemos/timely. pdf

EPA’s Role in Options 1, 2, and 3 How long does it take to get a final PSD permit from EPA? Recent Region 9 Projects Timeline Four Corners Power Plant, Navajo Nation 14 months Pio Pico Energy Center 34 months Palmdale Hybrid Power Project 42 months EAB Process No EAB Appeal, Permit Remanded EAB Appeal, Permit Upheld 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 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) Are permit extensions an option? • 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

Recommendations and Considerations 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) How do you reduce the time to get a final permit from the EPA? • 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

Contact Info EPA Region 9 PSD Permits: http: //www. epa. gov/region 9/air/permit/r 9 -permits-issued. html#psd Lisa Beckham Phone: (415) 972 -3811 Email: beckham. lisa@epa. gov The Clean Power Plan is here! http: //www 2. epa. gov/cleanpowerplan Ray Saracino, EPA Region 9 Phone: (415) 972 -3361 Email: saracino. ray@epa. gov