San Joaquin Valley Iwo AIR POLLUTION CONTROL DISTRICT HEALTHY AIR LIVING'

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San Joaquin Valley Iwo AIR POLLUTION CONTROL DISTRICT HEALTHY AIR LIVING' SEP 12 2014 Steven Thomas Union Pacific Railroad Company 1400 Douglas Street, Stop 0910 Omaha, NE 68179 RE: Notice of Final Action - Authority to Construct Facility Number: N-9020 Project Number: N-1142727 Dear Mr. Thomas: The Air Pollution Control Officer has issued the Authority to Construct permits to Union Pacific Railroad Company for two diesel fired emergency engines, at 1201 Railroad Way, Stockton, CA. Enclosed are the Authority to Construct permits and a copy of the notice of final action to be published approximately three days from the date of this letter. Notice of the District's preliminary decision to issue the Authority to Construct permits was published on August 6, 2014. The District's analysis of the proposal was also sent to CARB on August 1, 2014. No comments were received following the District's preliminary decision on this project. Also enclosed is an invoice for the engineering evaluation fees pursuant to District Rule 3010. Please remit the amount owed, along with a copy of the attached invoice, within 60 days. Seyed Sadredin Executive DirectorfAir Pollution Control Officer Northern Region 4800 Enterprise Way Modesto, CA 95356-8718 Tel: (209)557-6400 FAX: (209) 557-6475 Central Region (Main Office) 1990 E. Gettysburg Avenue Fresno, CA 93726-0244 Tel: (5591 230-6000 FAX: (559) 230-6061 Southern Region 34946 Flyover Court Bakersfield, CA 93308-9725 Tel: 661-392-5500 FAX: 661-392-5585 www.valleyair.org www.healthyairliving.com Pfilled tecycled papp.

Mr. Steven Thomas Page 2 Thank you for your cooperation in this matter. If you have any questions, please contact Mr. Rupi Gill at (209) 557-6400. Sinwely, naud Marjollet irector of Permit Services AM:mjs Enclosures cc: Mike Tollstrup, CARB (w/enclosure) via email

N W San Joaquin Valley INN AIR POLLUTION CONTROL DISTRICT HEALTHY AIR LIVING' PERMIT NO: N-9020-3-0 LEGAL OWNER OR OPERATOR: MAILING ADDRESS: LOCATION: Seyed Satirecir), Vecii eplrector / APC AUTHORITY TO CONSTRUCT UNION PACIFIC RAILROAD COMPANY 1400 DOUGLAS ST STOP 0910 OMAHA, NE 68179-0910 1201 RAILROAD WAY STOCKTON, CA ISSUANCE DATE: 09/09/2014 EQUIPMENT DESCRIPTION: 909 BHP PERKINS MODEL 2806C-E18TAG3 TIER 2 CERTIFIED DIESEL-FIRED EMERGENCY STANDBY IC ENGINE POWERING AN ELECTRICAL GENERATOR CONDITIONS 1. No air contaminant shall be released into the atmosphere which causes a public nuisance. [District Rule 4102] 2. Particulate matter emissions shall not exceed 0.1 grains/dscf in concentration. [District Rule 4201] 3. No air contaminant shall be discharged into the atmosphere for a period or periods aggregating more than three minutes in any one hour which is as dark as, or darker than, Ringelmann 1 or 20% opacity. [District Rule 410]] 4. The exhaust stack shall vent vertically upward. The vertical exhaust flow shall not be impeded by a rain cap (flapper ok), roof overhang, or any other obstruction. [District Rule 4102] 5. Only CARD certified diesel fuel containing not more than 0.0015% sulfur by weight is to be used. [District Rules 2201 and 4801, and 17 CCR 93115] 6. This engine shall be equipped with an operational non-resettable elapsed time meter or other APCO approved alternative. [District Rules 4701 and 4702 and 17 CCR 93115] 7. Emissions from this IC engine shall not exceed any of the following limits: 4.1 g-n0x/bhp-hr, 0.29 g-co/bhp-hr, or 0.2 g-voc/bhp-hr. [District Rule 2201 and 17 CCR 93115] 8. Emissions from this IC engine shall not exceed 0.028 g-pm10/bhp-hr based on USEPA certification using ISO 8178 test procedure. [District Rules 2201 and 4102, and 17 CCR 93115] 9. This engine shall be operated and maintained in proper operating condition as recommended by the engine manufacturer or emissions control system supplier. [District Rule 4702] CONDITIONS CONTINUE ON NEXT PAGE YOU MUST NOTIFY THE DISTRICT COMPLIANCE DIVISION AT (209) 667.8400 WHEN CONSTRUCTION IS COMPLETED AND PRIOR TO OPERATING THE EQUIPMENT OR MODIFICATIONS AUTHORIZED BY THIS AUTHORITY TO CONSTRUCT. This Is NOT a PERMIT TO OPERATE. Approval or denial of ERM1T TO OPERATE will be made after an Inspection to verify that the equipment has been constructed in accordance with the approved plans, $ ations and conditions of this Authority to Construct, and to determine if the equipment can be operated in compliance with all Rules and Regula f the San Joaquin Valley Unified Air Pollution Control District. Unless construction has commenced pursuant to Rule 2050, this Authority to Cons 011 expire and application shall be cancelled two years from the date of issuance. The applicant Is responsible for complying with all laws, ordinan regulations of all other governmental agencies which may pertain to the above equipment. Amaud Mad let, Direct/Sr of Permit Services N4902044: 84p 9 7014 41114 -SCOONNOSI : J.1141 inspection NOT Roqutral... Northern Regional Office 4800 Enterprise Way Modesto, CA 95358-8718 (209) 557-6400 Fax (209) 557-6475

Conditions for N-9020-3-0 (continued) Page 2 of 2 10. During periods of operation for maintenance, testing, and required regulatory purposes, the permittee shall monitor the operational characteristics of the engine as recommended by the manufacturer or emission control system supplier (for example: check engine fluid levels, battery, cables and connections; change engine oil and filters; replace engine coolant; and/or other operational characteristics as recommended by the manufacturer or supplier). [District Rules 4701 and 4702] 11. This engine shall be operated only for testing and maintenance of the engine, required regulatory purposes, and during emergency situations. Operation of the engine for maintenance, testing, and required regulatory purposes shall not exceed 50 hours per calendar year. [District Rules 4701 and 4702 and 17 CCR 93115] 12. An emergency situation is an unscheduled electrical power outage caused by sudden and reasonably unforeseen natural disasters or sudden and reasonably unforeseen events beyond the control of the permittee. [District Rules 4701 and 4702] 13. This engine shall not be used to produce power for the electrical distribution system, as part of a voluntary utility demand reduction program, or for an interruptible power contract. [District Rules 4701 and 4702] 14. The permittee shall maintain monthly records of emergency and non-emergency operation. Records shall include the number of hours of emergency operation, the date and number of hours of all testing and maintenance operations, the purpose of the operation (for example: load testing, weekly testing, rolling blackout, general area power outage, etc.) and records of operational characteristics monitoring. For units with automated testing systems, the operator may, as an alternative to keeping records of actual operation for testing purposes, maintain a readily accessible written record of the automated testing schedule. [District Rules 4701 and 4702 and 17 CCR 93115] 15. The permittee shall maintain monthly records of the type of fuel purchased. [District Rules 4701 and 4702 and 17 CCR 93115] 16. All records shall be maintained and retained on-site for a minimum of five (5) years, and shall be made available for District inspection upon request. [District Rules 4701 and 4702 and 17 CCR 93115] 17. U.S. EPA administers the requirements of 40 CFR Part 60 Subpart IIII and 40 CFR Part 63 Subpart ZZZZ. The owner or operator shall comply with the emission and operating limitations, testing requirements, initial and continuous compliance requirements as specified in these subparts. The owner or operator shall submit all applicable notifications, reports, and records to the administrator by the required compliance dates. [District Rules 4001 and 4002] *902P/3V :Sep 2014 i:e WM BC.110$010M

San Joaquin Valley AIR POLLUTION CONTROL DISTRICT HEALTHY AIR LIVING - PERMIT NO: N-9020-4-0 Seyed Sadreli atxecuilyeirector A / AP59 AUTHORITY TO CONSTRUCT LEGAL OWNER OR OPERATOR: UNION PACIFIC RAILROAD COMPANY MAILING ADDRESS: 1400 DOUGLAS ST STOP 0910 OMAHA, NE 68179-0910 LOCATION: /1,,#... '"I 1201 RAILROAD WAY STOCKTON, CA ISSUANCE DATE: 09/09/2014 EQUIPMENT DESCRIPTION: 909 BHP PERKINS MODEL 2806C-E18TAG3 TIER 2 CERTIFIED DIESEL-FIRED EMERGENCY STANDBY IC ENGINE POWERING AN ELECTRICAL GENERATOR CONDITIONS 1. No air contaminant shall be released into the atmosphere which causes a public nuisance. [District Rule 4102] 2, Particulate matter emissions shall not exceed 0.1 grains/dscf in concentration. [District Rule 4201] 3. No air contaminant shall be discharged into the atmosphere for a period or periods aggregating more than three minutes in any one hour which is as dark as, or darker than, Ringelmann 1 or 20% opacity. [District Rule 4101] 4. The exhaust stack shall vent vertically upward. The vertical exhaust flow shall not be impeded by a rain cap (flapper ok), roof overhang, or any other obstruction. [District Rule 4102] Only CARB certified diesel fuel containing not more than 0.0015% sulfur by weight is to be used. [District Rules 2201 and 4801, and 17 CCR 93115] This engine shall be equipped with an operational non-resettable elapsed time meter or other APCO approved alternative. [District Rules 4701 and 4702 and 17 CCR 93115] 7. Emissions from this IC engine shall not exceed any of the following limits: 4.1 g-n0x/bhp-hr, 0.29 g-co/bhp-hr, or 0.2 g-voc/bhp-hr. [District Rule 2201 and 17 CCR 93115] 8. Emissions from this IC engine shall not exceed 0.028 g-pm10/bhp-hr based on USEPA certification using ISO 8178 test procedure. [District Rules 2201 and 4102, and 17 CCR 93115] 9. This engine shall be operated and maintained in proper operating condition as recommended by the engine manufacturer or emissions control system supplier. [District Rule 4702] CONDITIONS CONTINUE ON NEXT PAGE YOU MUST NOTIFY THE DISTRICT COMPLIANCE DIVISION AT (209) 56741400 WHEN CONSTRUCTION IS COMPLETED AND PRIOR TO OPERATING THE ECIIMMENT OR MODIFICATIONS AUTHORIZED BY THIS AUTHORITY TO CONSTRUCT. This Is NOT a PERMIT TO OPERATE. Approval or denial.o RMIT TO OPERATE will be made after an Inspection to verify that the equipment has been constructed in accordance with the approved plans, ions -and conditions of this Authority to Construct, and to determine if the equipment can be operated In compliance with all Rules and Regulit the San Joaquin Valley Unified Air Pollution Control District. Unless construction has commenced pursuant to Rule 2050, this Authority to p4fiii all expire and application shall be cancelled two years from the date of issuance. The applicant Is responsible for complying with all laws, ordinen regulations of all other governmental agencies which may pertain to the above equipment. Arnaud Marillet e.director of Permit Services 11.00204-0 : fisp 20T7 14114A SCTIONNOM : MAI Imps:Oen NOT Requited Northern Regional Office 4800 Enterprise Way Modesto, CA 95356-8718 (209) 557-6400 Fax (209) 557-6475

Conditions for N-9020-4-0 (continued) Page 2 of 2 10. During periods of operation for maintenance, testing, and required regulatory purposes, the permittee shall monitor the operational characteristics of the engine as recommended by the manufacturer or emission control system supplier (for example: check engine fluid levels, battery, cables and connections; change engine oil and filters; replace engine coolant; and/or other operational characteristics as recommended by the manufacturer or supplier). [District Rules 4701 and 4702] 11. This engine shall be operated only for testing and maintenance of the engine, required regulatory purposes, and during emergency situations. Operation of the engine for maintenance, testing, and required regulatory purposes shall not exceed 50 hours per calendar year. [District Rules 4701 and 4702 and 17 CCR 93115] 12. An emergency situation is an unscheduled electrical power outage caused by sudden and reasonably unforeseen natural disasters or sudden and reasonably unforeseen events beyond the control of the permittee. [District Rules 4701 and 4702] 13. This engine shall not be used to produce power for the electrical distribution system, as part of a voluntary utility demand reduction program, or for an interruptible power contract. [District Rules 4701 and 4702] 14. The permittee shall maintain monthly records of emergency and non-emergency operation. Records shall include the number of hours of emergency operation, the date and number of hours of all testing and maintenance operations, the purpose of the operation (for example: load testing, weekly testing, rolling blackout, general area power outage, etc.) and records of operational characteristics monitoring. For units with automated testing systems, the operator may, as an alternative to keeping records of actual operation for testing purposes, maintain a readily accessible written record of the automated testing schedule. [District Rules 4701 and 4702 and 17 CCR 93115] 15. The permittee shall maintain monthly records of the type of fuel purchased. [District Rules 4701 and 4702 and 17 CCR 93115] 16. All records shall be maintained and retained on-site for a minimum of five (5) years, and shall be made available for District inspection upon request. [District Rules 4701 and 4702 and 17 CCR 93115] 17. U.S. EPA administers the requirements of 40 CFR Part 60 Subpart lin and 40 CFR Part 63 Subpart ZZZZ. The owner or operator shall comply with the emission and operating limitations, testing requirements, initial and continuous compliance requirements as specified in these subparts. The owner or operator shall submit all applicable notifications, reports, and records to the administrator by the required compliance dates. [District Rules 4001 and 4002] N42020-4.0. Sep 57014 1:41K1-8C1402010/4