Air Pollution Control District 

San Luis Obispo County 

December 16, 2014 

Gerardo Rios 

Chief, Air Permits Office (Air-3) 

EPA Region 9 

75 Hawthorne Street 

San Francisco, CA 94105 

RE: Clarifications for Rule 220 - Federal Prevention of Significant Deterioration 

Dear Mr. Rios: 

On May 13, 2014, the California Air Resources Board (CARB) submitted for the 

Environmental Protection Agency's (EPA) approval San Luis Obispo Air Pollution Control 

District (District) Rule 220 - Federal Prevention of Significant Deterioration. This letter 

provides additional information and clarifications related to greenhouse gas permitting 

requirements and transferring the PSD program from EPA to the District. 

Clarification Regarding Greenhouse Gas Requirements: 

On June 23, 2014, the Supreme Court issued its opinion in Utility Air Regulatory Group v. 

Environmental Protection Agency (No. 12-1146) ("UARG'1 that EPA may not treat greenhouse 

gases (GHGs) as an air pollutant for purposes of determining whether a source is a major 

source (or modification thereof) required to obtain a PSD permit (referred to as "Step 2 of 

·the GHG Tailoring Rule"). The Supreme Court also said that EPA could continue to require 

that PSD permits, otherwise required based on emissions of conventional pollutants, 

contain limitations on GHG emissions based on the application of BACT. District Rule 10.10, 

Section C incorporates by reference EPA's PSD regulations at 40 CFR 52.21 as of August 1, 

2011. In light of the Supreme Court's UARG decision, on June 23, 2014, I requested that ARB 

notify EPA that ARB and the District would like to withdraw from ARB's April 22, 2013 SIP 

submittal the portion of District Rule 10.10 that incorporates by reference 40 CFR 

52.21(b)(49)(v). This withdrawal is designed to ensure that EPA can act on the District's SIP 

submittal consistent with the Supreme Court's UARG decision concerning Step 2 of the GHG 

Tailoring Rule. The District understands that EPA will need to make revisions to 40 CFR 52.21 

as a result of the UARG decision and the associated remand process that is still ongoing. In 

the interim, the District intends to apply 40 CFR 52.21 as incorporated by reference into 

District Rule 10.10, Section C in manner that is consistent with EPA's interpretation of the 

Supreme Court's decision and EPA guidance and policy with respect to application of section 

52.21 while revisions to the regulations are pending. 

r 805.781.5912 F 805.781 .1002 w slocleanair.org 3433 Roberto Court, San Luis Obispo, CA 93401 

1003 Post Consumer Recycled Poper 

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Clarifications for Rule 220 

December 16, 2014 

Page 2of2 

Discussion of Section 11 O(a)(2)(E)(i): 

Pursuant to Section 11 O(a)(2)(E)(i) of the Clean Air Act, we discuss how the information provided 

previously and State and District statutory and regulatory requirements demonstrate that the 

District has adequate personnel, funding, and authority under State and/or local law to implement 

the PSD program within the District. 

The District has the primary responsibility for regulating air pollution from all stationary sources 

within the District (see California Health & Safety Code (H&SC) sections 39002 and 40000). The 

California Air Resources Board oversees the District's activities and regulates mobile sources of air 

pollution. Under State law, the District is required to adopt rules to achieve ambient air quality 

standards and to enforce the provisions of local, State and federal air quality laws (see H&SC section 

40001 (a)). 

The District's permitting program (which is authorized by H&SC section 42300 and must meet the 

requirements of section 42301 ), as approved by EPA, currently implements requirements from .both 

the California and Federal Clean Air Acts. The District is authorized by state law to enforce its rules, 

regulations and orders, including conditions contained in District-issued Title V and PSD permits (see 

H&SC §§ 40752(b); 41513; 42402-42403). Rule 220 provides the District with specific authority to 

issue PSD permits and otherwise implement and enforce the PSD program. 

As discussed in our May 13, 2014 submittal, the District does not expect Rule 220 to have any 

significant financial impacts, as funding and ·staffing for PSD permits will be provided through 

existing fee requirements in District Rules 301 and 302; we currently have no existing PSD permits. 

Rule 220 is expected to streamline the permitting requirements and allow the District to use local 

timelines and appeal processes for projects that are subject to federal PSD. 

The above information shows that the District has adequate legal authority, personnel and funding 

to implement and enforce the PSD program 

If you or your staff have any questions, please do not hesitate to contact me. 

Very truly yours, 

LARRY R. ALLEN 

Air Pollution Control Officer 

H:\RULES\SIP\Rule 220 SIP Clarification Lener to EPA.docx