On the agenda: San Francisco Presentation (Part 1 of 2) — DATACENTER (Oct 15)

October 15, 2026
John Marvin
Air Quality Program Manager, Compliance & Enforcement Division
Bay Area AQMD
375 Beale Street, Suite 600
San Francisco, CA 94105
Re:

QTS Investment Properties Santa Clara, LLC
2805-2807 Mission College Blvd., Santa Clara, CA 95054
Request for Variance for Additional Generator Operating Hours
Plant ID 19010, Sources S2, S3, & S4

Dear Mr. Marvin,
Quality Investment Properties (QTS) respectfully submits the enclosed request to the Bay Area
Air Quality Management District (BAAQMD) for a short variance from the Permit to Operate
associated with source IDs S2, S3, and S4 for Plant 19010, to facilitate necessary maintenance
on transformers. QTS engaged Environmental Resources Management (ERM) to assist them
with this variance request to support the business-critical need to perform transformer
maintenance supporting three generators: S2, S3, and S4. Transformer maintenance will
require approximately 10 hours, with an additional six hours as contingency for this
maintenance and testing, for a total of 16 hours of operation per generator. The current facility
permit allows five hours of run time annually per generator for these generators.
The transformer maintenance will include replacement of the oil as the current oil is reaching
end of life, and the installation of a sampling device that will allow QTS to perform necessary
sampling and check oil quantity without needing to engage generator power in future instances.
Installation of the sampling device will decrease lifetime emissions at the facility. The generators
will need to be exercised to de-energize the transformers to perform this work safely, and to
ensure the generators operate as intended following the maintenance work. Therefore, QTS
requests a variance for operation of Generators S2, S3, and S4 for up to 16 hours per engine to
perform the transformer maintenance and sampling device installation.
Failure to perform the transformer maintenance could potentially cause significant downtime in
the event of a system failure. The failure of the transformers would cause a loss of functionality
of the buildings’ utility supplied power. The generators would then be required to operate until
transformers could be replaced/repaired, which could result in a loss of electrical power to our
customers, possibly create safety concerns, and pose significant harm to our business’ function.
Many of QTS’s customers are hospitals, emergency service providers, financial institutions, and
small businesses, all of whom rely on assured continued services during emergency situations.
Transformer maintenance and sampling device installation will enhance the facility’s ability to
operate on utility supplied power reliably.
QTS appreciates BAAQMD’s consideration of its variance request during this critical moment to
support the transformer maintenance and sampling device installation, and is available to
discuss further or answer any questions. Please do not hesitate to contact me at (682) 4240256 or [email protected]. Thank you for your attention to this matter.

Sincerely,

Taylor Bell
Senior Development Project Manager
Facilities Capital Projects
2805-2807 Mission College Blvd
Santa Clara, CA 95054
Attachment

POWERED BY PEOPLE QTSDATACENTERS.COM | 877.QTS.DATA

INSTRUCTIONS FOR PETITION FOR VARIANCE

1. Assistance in filing out this form is available by contacting the Bay Area Air
Quality Management District Compliance Office at 415-749-4999.
2. Please type or print legibly.
3. Refer to the BAAQMD Regulations to determine all applicable rules and
regulations that apply to your variance petition.
4. Refer to the Hearing Board Rules for information on the different types of
variances; what types of evidence may be presented to the Hearing Board; and
how the hearing will be conducted.
5. The filing fee for variances can be found on Schedule A: Hearing Board Fees.
Once the Clerk has assigned the Applicant a docket number, online credit card
payments may be made at https://allpaid.com/plc/a005wq; or checks made out
to “Bay Area Air Quality Management District” may be mailed to:
Clerk of the Boards
Bay Area Air Quality Management District
375 Beale Street, Suite 600
San Francisco, CA, 94105
6. Petition must be signed by the petitioner (applicant) or authorized agent. When
the person signing if not the petitioner, petitioner should include a letter or
notation indicating authority to sign.
7. Incomplete or unsigned petitions will not be accepted.

TYPES OF VARIANCES
For all legal requirements for the granting of variances, please refer to California
Health & Safety Code, Article 2, Sections 42350 et seq.
SHORT: If compliance with District rule(s) can be achieved in 90 days or less,
request a short variance. (Hearing will be held after required 10-day posting notice.)
REGULAR: If compliance with District rule(s) will take more than 90 days, request
a regular variance. If the variance request will extend beyond one year, you must
include a specific detailed schedule of increments of progress which will lead to final
compliance. (Hearing will be held after required 30-day public notice.)
EMERGENCY: If non-compliance is the result of an unforeseen emergency, such as
a sudden equipment breakdown, power failure, or accidental fire, you may request
an emergency variance. You may request an ex parte emergency variance in
addition to an emergency variance. An emergency variance cannot be granted for
more than 30 days. Petitioner must present facts in its Petition and/or at the hearing
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to support a determination by the Hearing Board that good cause exists to hear a
variance without notifying the public about the variance and providing the public with
an opportunity to present evidence concerning the variance.(Hearing will be held as
soon as possible during normal business hours after filing.)
INTERIM: If you require immediate relief (other than for emergencies) to cover the
time until a short or regular variance hearing can be held, request an interim
variance. An interim variance cannot extend beyond 90 days. If you request an
interim variance, you must also request a short or regular variance on the same
Petition. Petitioner must present facts, in its Petition and/or at the hearing, too
support a determination by the Hearing Board that good cause exists to hear a
variance without notifying the public about the variance and providing the public with
an opportunity to present evidence concerning the variance. (Hearing will be held as
soon as possible after filing based on the Hearing Board’s calendar.)
GROUP: If there are multiple petitioners who are seeking variances based on
common issues of law and fact, they may file for a group variance. The Bay Area
AQMD General Counsel’s Office should be consulted prior to filing for a group
variance. The Petition must be accompanied by written declarations, signed under
penalty of perjury, from each member of the group setting forth sufficient evidence to
support the findings for a variance. No person will be included in the group without
the submission of the declaration. Counsel for the APCO must stipulate to the
admissibility of each declaration. Emergency relief is not available for a group
variance. (Hearing will be held after notice requirements for either a short or regular
variance are met, depending on the time requested.)
PRODUCT: If you are a manufacturer whose product does not comply with District
regulations, you may request variance coverage for the sale, purchase and use of
that particular product. Consult the H&S Code Sections 42365 et seq. for additional
requirements that attach to a product variance. (Hearing will be held after notice
requirements for either a short or regular variance are met, depending on the time
requested.)

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PETITION FOR VARIANCE
BEFORE THE HEARING BOARD OF THE
BAY AREA AIR QUALITY MANAGEMENT DISTRICT

PETITIONER

Name:

Quality Investment Properties Santa Clara, LLC

Check One: ___Sole Proprietor ___Partnership
___Government

_X_Corporation

___Non-Profit (specify)_____________________

Mailing Address:

2807 Mission College Blvd. Santa Clara, CA 95054

Phone number:

(682) 424-0256

Email Address:

[email protected]

Name, title, and phone number of person(s) authorized to receive notices (no more than
two):
Taylor Bell, Senior Development Project Manager – Facilities Capital Projects, (682)
424-0256
_____________________________________________________________________
Briefly describe the type of business or organization/agency activity:
Data center facility authorized to operate emergency generators.

Are you a Small Business as defined in Health and Safety Code Section 42352.5(b)?
___Yes

_X_No

Are you a public agency providing an “essential public service” as defined in Health and
Safety Code Section 42352?
___Yes

_X_No

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VARIANCE REQUEST

Type of Variance Requested:
If you are selecting Interim Variance, you must also select a Short or Regular Variance
to follow.
___Interim

__ X_Short __Regular

___Emergency

___Product ___Group

Good Cause: (Required only for Emergency and Interim Variances Explain why this
Petition was not filed in sufficient time to issue the required public notice.)

OPERATION

Briefly describe the type of equipment or process that is the subject of this variance
petition, and why it is necessary to your operation. Attach copies of the Permit(s) to
Construct and/or Permit(s) to Operate for the subject equipment. For Title V facilities,
attach only the relevant sections of the Facility Permit showing the equipment or
process and conditions that are subject to this Petition. You must bring the entire
Facility Permit to the hearing:
Transformers require maintenance, specifically the oil needs to be replaced. For this to
occur, generator power will be required which cannot be provided by a temporary
generator. To limit future need to use onsite generator power for oil sampling, a
sampling device will be installed in conjunction with the necessary maintenance.
Operational time for each of the generators during the transformer maintenance is
expected to be 10 hours, with an additional six hours as contingency, for a total of an
anticipated 16 hours of generator operation, per generator.

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REGULATORY REQUIREMENTS

List all District Regulations, rules, and permit conditions that are the subject of this
variance request. Identify all applicable subsections:
Plant ID 19010 Permit to Operate Condition #22805 as it applies to S2, S3, S4.
1. Operating for reliability-related activities is limited to 5 hours per year per
engine [Basis: “Regulation 2-5].

INFORMATION FOR VARIANCE FINDINGS

Is there a regular maintenance and/or inspection schedule for this equipment?
_X_Yes

___No

If yes, how often: Once per month
Date of last maintenance and/or inspection: 9/23/2024
Was there any indication of problems with the subject equipment?
___Yes

_X_No

Were you issued any Notice(s) of Violation or Notice(s) to Comply concerning the
equipment or activity that are the subject of this variance request within the past year?
___Yes

_X_No

If yes, attach a copy of each notice.
Have you received any complaints from the public regarding the operation of the subject
equipment or activity within the last six months?
___Yes

_X_No

If yes, be prepared to present detailed testimony about the nature of these
complaints at the hearing.
Has this matter been the subject of previous variance requests?
No
If yes, provide date of hearing, type of variance, and Hearing Board decision:

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Explain why it is beyond your reasonable control to comply with the regulations and
permit conditions that will be the subject of this variance:
The current facility permit allows for five (5) hours of runtime annually for the S2, S3,
and S4 generators. However, in order to safely and properly perform transformer
maintenance and installation of the sampling device, additional hours of operation will
be required. Therefore, a variance is required in order to perform these tasks.

If you are seeking a product variance, briefly describe how you attempted to locate,
research, or develop a product that is in compliance with District rules and regulations:
N/A

When and how did you first become aware that you are not (or will not be) in
compliance with the regulations, rules and/or permit conditions?
Periodic testing and maintenance are part of standard operating procedures for oil-filled
transformers. The transformers were identified in June 2025 as requiring inhibitor
treatment and oil top-off by the end of 2026. It was determined that the sampling device
also be installed to limit future need to operate the generators in order to sample the
transformer oil and determine the quantity of oil remaining.

List the date(s) and action(s) you have taken since that time to achieve compliance:
The QTS team reviewed the permit conditions that would be impacted by the need for
transformer maintenance and sampling device installation before engaging with ERM
earlier in November 2025. QTS then investigated internal testing and maintenance
needs related to these tasks to verify if the work could be completed within current
permit limits. The team is now escalating to BAAQMD upon confirmation that the permit
limits would be exceeded with the planned projects with this variance request.

What would be the harm to your business, agency or organization if the variance is not
granted?
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Economic losses See Below
Number of employees laid off, if any: N/A
Provide detailed information regarding economic losses, if any (anticipated
business closure, breach of contracts, hardship on customers, employees or the public,
and/or similar impacts):
The failure of the transformers would cause a loss of functionality of the buildings’ utility
suppled power. The generators would then be required to operate until the transformers
could be replaced/repaired, which could result in a loss of electrical power to our
customers, possibly create safety concerns, and pose significant harm to our business’
function. Many of QTS’s customers are hospitals, emergency service providers,
financials institutions, and small businesses, all of whom rely on assured continued
services during emergency situations. Transformer maintenance and sampling device
installation will enhance the facility’s ability to operate on utility supplied power reliably.

Can you curtail or terminate any operations in lieu of seeking a variance?
___Yes (provide brief explanation)
_X_No
Will any emissions occurring during the variance period result in odor, dust or smoke?
No.
If yes, identify the type and amount of these emissions; what you can do to
monitor and mitigate those emissions; and, the likely impact on the surrounding
community.

Will any emissions occurring during the variance period result in excess opacity (total
opacity above __%)? (Check on percentage opacity considered “excess”)
No.
If yes, identify the type and amount of these emissions; the likely duration of the
excess opacity during the variance period; and, what you can do to monitor and mitigate
those emissions.

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Estimate all other excess emissions that will occur on a daily basis during the variance
period. Excess emissions are those that exceed rule and permit condition limits.
QTS estimates approximately 16 hours of run time at a maximum of 50% load per
generator – across two days, with the daily maximum operation expected to be 10
hours. Table 1 below provides the daily maximum emissions for one generator and for
all generators. Based on the short duration of the project, additional mitigation efforts
outside of minimizing run time for testing have not been pursued.
Table 1 – Maximum Daily Emissions:
Pollutant

Maximum Daily Individual
Generator Excess Emissions
(lb/day)

Maximum Daily Excess
Emissions All Generators
(lb/day)

NOX
CO
VOC
PM2.5/PM10
DPM
SO2

222.00
50.88
6.52
6.48
6.48
0.11

666.00
152.63
19.56
19.43
19.43
0.34

Show calculations used to estimate quantities of excess emissions or explain why there
will be no excess emissions:
Calculations were completed, assuming emissions from a daily maximum of 10 hours of
generator operation at 50% load for transformer maintenance and sampling device
installation. This work is assumed to span over two days, for a total of 16 hours, per
generator. Emissions by day are listed above in Table 1, and total project emissions are
provided in Table 2 below.
Table 2 – Maximum Variance Total Emissions:
Pollutant

Maximum Excess Emissions,
Per Generator (lb)

Maximum Excess Emissions,
All Generators (lb)

NOX
CO
VOC
PM2.5/PM10
DPM
SO2

355.20
81.40
10.43
10.36
10.36
0.18

1,065.60
244.20
31.30
31.08
31.08
0.54

Briefly describe the measures that will be taken to mitigate excess emissions to the
maximum extent feasible during the variance period, or explain why mitigation
measures are not feasible:
QTS will minimize the number of hours of testing and maintenance required for the
transformer maintenance and sampling device installation. Further mitigation efforts are
not economically feasible based on the short duration of the project.
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How do you plan to monitor or quantify emissions levels from the equipment or
operations during the variance period?
By tracking load and operating hours for each run required during transformer
maintenance and sampling device installation for each emergency generator.

Will you provide information regarding emissions during the variance period in a manner
and frequency as requested by the District?
_X_Yes

___No

COMPLIANCE

How do you intend to achieve compliance with the regulations and permit conditions
that are the subject of the variance? Briefly describe any necessary process changes;
equipment to be installed; or modifications to equipment or your facility. Identify whether
authority to construct or a permit amendment will be necessary. Include dates by which
you estimate actions will be completed and an estimate of total costs.
Equipment changes include only the sampling device being installed. No additional
changes to the process or equipment will be made. Neither an authority to construct nor
a permit amendment will be necessary. These changes will be completed November
2026 through January 2027 pending agency approval. QTS will operate in compliance
immediately following the project end date and will continue to minimize annual hours of
operation according to permit conditions.

List any operating conditions or increments of progress, if any, that you propose to
include in the variance order. If the variance is to extend beyond one year, you must
propose increments of progress:
Variance will be completed by 12/31/2026, and no increments of progress are expected.

State the date you are requesting the variance to begin: Anticipated for November 2026
through January 2027.
State the date on which you will achieve final compliance: TBD

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List the names of any District staff with whom you or any of your staff or representatives
have had contact concerning this variance petition or any related Notice of Violation or
Notice to Comply. Include name, title and phone number:
John Marvin, Air Quality Program Manager, Compliance & Enforcement Division,
(415) – 749-5190

If this Petition was completed by someone other than the petitioner, provide their name
and title:
_____________________________________________________________________

The following verification must be signed by the owner, manager, director, or other
responsible party of the plant, business, factory, agency or organization requesting the
variance:
I, the undersigned, hereby declare under penalty of perjury, under the laws of the State
of California, that I have read the foregoing Petition, including attachments, and that
their contents are true and correct.
Dated:__10/15/2026_______, at (location) QTS Santa Clara.
Print name: Taylor Bell___________________________________________
Signature:____________________________________________
Title: Senior Development Project Manager, Facilities Capital Projects

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