THIS REFERRAL CONCERNS CAA VIOLATIONS BY SIGNAL ENERGY SYSTEMS, INC. SIGNAL HAS COMMENCED CONSTRUCTION OF A 49.9 MEGAWATT, WOODWASTE FIRED POWER PLANT IN ANDERSON, CA WITHOUT A VALID PREVENTION OF SIGNIFICANT DETERIORATION PERMIT. SECTION 165 OF THE CAA, 42 U.S.C. PROVIDES THAT NO MAJOR EMITTING FACILITY MAY BE CONSTRUCTED IN ANY ATTAINMENT AREA UNLESS A PSD REGION 9 DELEGATED AUTHORITY TO ISSUE PSD PERMI PERMITS IN SHASTA COUNTY TO THE SHASTA COUNTY AIR POLLUTION CONTROL DISTRICT PURSUANT TO 40 CFR. THE BASIS FOR THAT DELEGATION WAS SHASTA COUNTY'S RULE II-PERMITS, WHICH EPA REGION 9 DETERMINED TO BE SUBSTANTIALLY EQUIVALENT TO THE FEDERAL PSD REQUIREMENTS. THE DISTRICT ISSUED A PSD PERMIT TO SIGNAL ON NOVEMBER 13 1986. ON DECEMBER 11, 1986, THE NORTHERN CALIFORNIA PIPE TRADES COUNCIL FILED A PETITION FOR REVIEW OF THE PSD PERMIT ISSUED TO SIGNAL WITH THE ADMINISTRATOR OF EPA PURSUANT TO THE CONSOLIDATED PERMIT REGULATIONS, 40 CFR 124. THE FILING OF THE PETITION STAYED THE EFFECTIVE DATE OF THE PERMIT UNTIL THE APPEAL PROCESS IS COMPLETED 40 CFR 124.15. IN SPITE OF THE APPEAL, SIGNAL BEGAN CONSTRUCTION OF THE POWER PLANT. SECTION 167 OF THE ACT STATES THAT THE ADMINIS- TRATOR SHALL TAKE MEASURES TO PREVENT A FACILITY FROM CON- STRUCTING WITHOUT A PSD PERMIT. SIGNAL ARGUED THAT EPA DELEGATED IT