ARCHIVED REPORTS LEC APPLICATION FOR CERTIFICATION

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5.1 AIR QUALITY A new or modified facility with a stationary source NSR balance exceeding the SJVAPCD offset thresholds shown in Table 5.1-33 must offset all emissions increases at a ratio that varies according to the distance between the facility and the source of the offsets. TABLE 5.1-33 District Offset Emission Thresholds Pollutant Threshold, Ib/yr NOx 20,000 SO2 54,730 CO 200,000 VOC 20,000 PM 29,200 *Applies in CO attainment areas, including the project site. CO emissions in nonattainment areas are subject to a 30,000 Ib/yr offset threshold. Air Quality Impact Analysis An air quality impact analysis must be conducted to evaluate impacts of emission increases from new or modified facilities on ambient air quality. Project emissions must not cause an exceedance of any ambient air quality standard. Toxic Risk Management The SJVAPCD's Risk Management Review Policy for Permitting New and Modified Sources provides a mechanism for evaluating potential impacts of air emissions of toxic substances from new,modified, and relocated sources in the SJVAPCD. The policy requires a demonstration that the source will not adversely impact the health and welfare of the public. CEC Review Rule 2201,Section 5.8 establishes a procedure for coordinating SJVAPCD review of power plant projects with the CEC AFC and Small Power Plant Exemption(SPPE) processes. Under this rule,the SJVAPCD reviews the AFC/SPPE and issues a Determination of Compliance for a proposed project,which is equivalent to an Authority to Construct upon approval of the project by the CEC. A permit to operate is issued following the CEC's certification of a project and demonstration of compliance with all permit conditions. Rule 2540 (Acid Rain Program)requires that certain subject facilities comply with maximum operating emissions levels for SO2 and NO,and must monitor SO2,NO, and CO2 emissions and exhaust gas flow rates. A Phase II acid rain facility, such as the project,must obtain an acid rain permit as mandated by Title IV of the 1990 Clean Air Act Amendments. A permit application must be submitted to the SJVAPCD at least 24 months before operation of the new unit commences.26 The application must present all relevant Phase II sources at the facility, a compliance plan for each unit, applicable standards, and an estimated commencement date of operations. Rule 2520 (Federally Mandated Operating Permits)requires major facilities and Phase II acid rain facilities undergoing modifications to obtain an operating permit containing the 26 Approximately by June 1,2010,based on the assumption of initial operation on June 1,2012. 5.1-52 SAC/371322/082410013(LEC_5.1_AIR_QUALITY.DOC)