United States E nvironmental Protection Agency

Region IX Air Division

Technical Support Document

for

EPA's Notice of Proposed Rulemaking

for the

California State Implementation Plan

Modoc County Air Pollution Control District

Rule 2.3

– Transfers

Rule 2.5

– Expiration of Applications

Rule 2.7

– Conditional Approval

Rule 2.10

– Further Information

Prepared by: Ya

- Ting (Sheila) Tsai

Reviewed by

Gerardo Rios

June 9, 2016I. INTRODUCTION

This technical support document (TSD) address es the g eneral N ew S ource R eview (NSR)

p rogram r equirements of the federal NSR program, and discuss es the E nvironmental P rotection

A gency ’s (EPA) findings on whether the rules and regulations related to NSR that have been submitted by the Modoc County Air Pollution Control District ( MC APC D or District) for approval into the California State Implementation Plan ( SIP ) meet federal NSR requirements.

T he TSD also discusses EPA’s findings under s ections 110(l) and 193 of the Clean Air Act (CAA or the Act) relevant to this action.

Section 110(a)(2)(C) of the Act requires that each SIP include a program to provide for “regulation of the modification and c onstruction of any stationary source within the areas covered by the plan as necessary to assure that national ambient air quality standards are achieved, including a permit program as required in parts C and D” of title I of the Act. Thus, in

addition to the permit programs required in parts C and D of title I of the Act, which apply to

new major stationary sources and major modifications, each SIP must include a program regulating stationary sources and modifications with emissions below specified major source thresholds. These preconstruction requirements are commonly referred to as the m inor or g eneral

NSR p rogram and are implemented through EPA’s regulations at Title 40 of the Code of Federal Regulations ( CFR ) part 51 , sections 160 through 164. T hese more general program requirements are the only federal requirements that apply to these “minor” stationary sources and non

- major

modifications. The y also apply to major sources and major modifications, in addition to the more detailed requirements in parts C and D of the Act and their implementing regulations at 40 CFR 51.166 and 51.165, respectively.

M CAPCD is designated attainment for all pollutants; therefore, the District i s not required to

submit a nonattainment NSR program as required under 40 CFR 51.165. While the District was required to submit a PSD program, EPA adopt ed a PSD program for Modoc County through the application of a Federal Implementation Plan (FIP) to satisfy this CAA requirement. T herefore

we are not evaluating the submitted rules against the requirements of 40 CFR 51.165 and 51.166.

II. SIP REVISION SUBMITTAL

M CAPCD adopted the submitted permit program related rules as listed in Table 1

, as part of

their general NSR program requirements. The California Air R esources Board (ARB) submitted

the revised rules listed in Table 1 to EPA Region 9 as a revision to the California SIP. ARB is the governor’s designee for submitting official revisions of the California SIP to the EPA. Tab le

1 provides the name, number, adoption and submittal dates for the rules evaluated as part of this

TSD.

Table 1

– Submitted Rules

Rule # Rule Title Adopted or

Amended

Date Submitted

Date

2.3 Transfer s 1/15/1989 12/31/1990

2.5 Expiration of Applications 1/15/1989 12/31/19901 Rule # Rule Title Adopted or

Amended

Date Submitted

Date

2.7 Conditional Approval 1/15/1989 12/31/1990

2.10 Further Information 5/15/1989 12/31/1990 Completeness Determination

With respect to procedures, CAA sections 110(a) and 110(l) require that revisions to a SIP be adopted by the State after reasonable notice and public hearing. EPA has promulgated specific procedural requirements for SIP revisions in 40 CFR part 51, s ubpart F. These requirements include publication of notices by prominent advertisement in the relevant geographic area, a public hearing on the proposed revisions, a public comment period of at least 30 days, and an opportunity for a public hearing. Based on our review of the public process documentation

included in the submittal s listed in Table 1, we find that M CAPCD has provided sufficient evidence of public notice and opportunity for comment and public hearings prior to adoption and

submittal of these rules t o EPA. On February 28, 1991 , EPA determined that ARB’s SIP submittal packages in Table 1 conformed to the completeness criteria in 40 CFR p art 51,

a ppendix V.

Existing Rules

EPA approved the rul es listed in Table 2 into the M CAPCD portion of the Califor nia SIP on the

dates listed

. If the rules listed in Table 1 are approved by EPA , those rules will take the place of the existing SIP approved rules listed in Table 2

.

Table 2

– SIP Approved Rules

Rule # Rule Title SIP Approval

Date Federal Register

Citation

2.3 Transfer 09/22/1972 37 FR 19812

2 .5 Cancellation of Applications 09/22/1972 37 FR 19812

2.7 * Provision of Sampling and Testing

Facilities 09/22/1972 37 FR 19812

2 .9 * Conditional Approval 09/22/1972 37 FR 19812

* Note: SIP approved Rule 2.7

- Provision of Sampling and Testing Facilities will be replaced by portions of newly

submitted R ule 2.10 Further Information. SIP approved Rule 2.9

- Conditional Approva l will be replaced by

submitted R ule 2.7

- Conditional Approva l.

III. RULE REVISION SUMMARIES AND EVALUATION

The submitted rules are revisions to existing SIP

- approved general NSR permit program rules,

but Rule 2.10 is a new SIP submittal incorporating SIP

- approved Rule 2.7

. T he District has made

several minor formatting and editorial re visions which improve the clarity and enforceability of

each rule. These changes are mostly administrative in nature and their approval will not interfere with any applicable requirement concerning attainment and reasonable further progress, or any

other C AA applicable requirement

. Below we provide a summary of each rule and any2 significant changes to the existing SIP approved rule.

Rule 2.3

– Transfers The SIP approved version of Rule 2.3 generally prohibits the transfer of an Authority to

Construct or Permit to Operate

. The rule has been revised by adding new language allowing the

transfer of an Authority to Construct or Permit to Operate from one location to another, from one person to another, or from one piece of equipment to another, upon written ap proval of the Air

Pollution Control Officer (APCO)

. Other minor formatting and editorial revisions to improve clarity have also been made

.

Rule 2. 3 is an administrative rule regarding the transfer of permits. The revisions allowing transfers upon the writ ten approval of the APCO are acceptable since they do not conflict with any federal program requirements or interfere with the attainment or maintenance of a ny NAAQS.

Rule 2.5

– Expiration of Applications

The SIP

- approved version of Rule 2.5 provides that an Authority to Construct or an application

for a Permit to Operate will be cancelled after two years . Changes from the approved SIP rule

include:

1. Renamed the rule from Cancellation of Applications to Expiration of Applications.

2. Changed the expiratio n period for an Authority to Construct or an application for a Permit to Operate from two years to one year

, or until the Permit to Operate is granted or denied, or the application is cancelled, whichever occurs first.

3. Addition of language to allow an Auth ority to Construct or the application for a Permit to Operate to be extended on an annual basis for up to two years

.

The revisions to Rule 2.5 decreased the valid period of an Authority to Construct from two years to one year, but also added language which allows for an extension upon request for up to two years. For minor sources there are no specific requirements for the expiration of an Authority to Construct or Permit to Operate application

. The revisions are acceptable since they do not

c onflict with any federal program requirements or interfere with the attainment or maintenance of a NAAQS.

R ule 2.7

– Conditional Approval

Rule 2.7 provides authority to the APCO to issue an A uthority to C onstruct or a P ermit to

O perate with conditions ne cessary to ensure compliance with all District regulations. Changes

from SIP

- approved Rule 2.9 include:

1. Renumbered the rule from Rule 2.9 to Rule 2.7

. Submitted Rule 2.7 will replace SIP approved Rule 2. 9

– Provision of Sampling and Testing Facilities.

2. Addition of language clarifying that commencing work under an authority to Construct or operation under a Permit to Operate shall be deemed acceptance of all conditions.

3. Addition of language prohibit ing a person to operate equipment contrary to permit

cond itions specified on permits issued in accordance with the provisions of Rule 2.7

.

The revisions to submitted Rule 2.7 provide additional enforceability by clarifying construction and operation of equipment deems acceptance of those conditions and that equ ipment cannot be3 operated contrary to permit condi tions specified i n the permit. The rule revisions are acceptable since they do not conflict with any federal program requirements or interfere with the attainment or maintenance of a NAAQS.

R ule 2.10

– Fur ther Information

Rule 2.10 is a new rule number with some of its contents moved from SIP approved Rule 2.7

– Provision of Sampling and Testing Facilities. Rule 2.10 allows the APCO to require data, sampling, testing, and monitoring to determine a stationary source ’s emissions

. It also specifies

that the APCO m ay require the disclosures be certified by a professional engineer regist ered by

the State of California and that t he cost of providing such information must be paid by the applicant or permit holder. This new rule improves the SIP by providing the APCO with authority to require a source to provide information regarding the stationary source’s emissions.

Th is new rule is acceptable since it do es not conflict with any federal program requirement s or interfere with the attainment or maintenance of a NAAQS. This rule also satisfies Section 110(a)(2) of the CAA.

Clean Air Act Section 110(l) Analysis

Section 110(l) of the CAA states that each SIP revision submitted by a State shall be adopted by such State after reasonable notice and public hearing. It also states that the Administrator shall not approve a SIP revision if the revision would interfere with any applicable requirement concerning attainment and reasonable further progress, or any othe r CAA applicable requirement.

With respect to the procedural requirements of CAA section 110(l), based on our review of the public process documentation included in the SIP submittal package s listed in Table 1 , we find

that M CAPCD has provided sufficient evidence of public notice and opportunity for comment and public hearings prior to adoption and submittal of these rules to EPA.

With respect to the substant ive requirements of CAA section 110(l), each of the rules being

reviewed contain s minor revisions which generally improve the clarity and enforceability of the

rule and/or additional requirements which strengthen the District’s permit program . The se rules

are administrative or procedural in nature and do not require any specific level of emission control, therefore their approval will not interfere with any applicable requirement concerning attainment and reasonable further progress, or any other CAA applicable requirement. For the se

reas ons, we find the revisions contained in the submitted rules to be approvable under 110(l).

Clean Air Act Section 193 Analysis

Section 193 of the Act, which was added by the Clean Air Act Amendments of 1990, includes a savings clause which provides, in p ertinent part: “No control requirement in effect, or required to be adopted by an order, settlement agreement, or plan in effect before November 15, 1990, in any area which is a nonattainment area for any air pollutant may be modified after November 15,

19 90, in any manner unless the modification insures equivalent or greater emission reductions of such air pollutant.”4 The MC APCD is currently classified as attainment for all NAAQSs, therefore the provisions of Section 193 are not applicable to this action.

IV. EPA Recommendation

Under the Act, EPA is required to evaluate the state/local programs to determine whether they

meet the m inimum federal requirements for approval. Changes to the state/local programs also are submitted and must be approved or disapproved by EPA. During this evaluation, EPA

noticed several local rule updates to the current SIP

- approved rules in Regulation II

– Permit System. It is EPA’s recommendation to submit those updated rules to eliminate the SIP gap

, which results in differing state/local and federal requirements for the same program

.

V. EPA ’S PROPOSED ACTION

Rules 2.3, 2.5

, 2. 9 , and portions of 2.10 were previously SIP

- approved as meeting certain requirements of a general NSR permit program (37 FR 19812, 09/22/1972 )

. The revisions to Rules 2.3, 2.5 and 2.9 (now 2.7 ) and the addition of Rule 2.10 are mostly administrative or procedural in nature and generally provide additional clarification and enforceability

. The rule provisions also ensure compliance with certain general NSR program requirements contained in

40 CFR 51.160

- 164

. The revisions comply with the requirements of section 110(l) of the CAA

. We reco mmend approval of submitted Rules 2.3

, 2.5

, 2.7, and 2.10 pursuant to CAA §110(k ) ( 3) and §301(a).

VI. ATTACHMENTS

1. Current M CAPCD SIP Rule 2.3

, Transfers

, SIP approved September 22, 197 2

2. Current MCAPCD SIP Rule 2.5

, Cancellation of Applications , SIP approved September 22, 197 2

3. Current MCAPCD SIP Rule 2.7

, Provision of Sampling and Testing Facilities , SIP approved September 22, 197 2

4. Current MCAPCD SIP Rule 2.9

, Conditional Approval , SIP approved September 22,

197 2

5. Submitted MCAPCD Rule 2.3

, Transfers , revised January 15, 1989

6. Submitted M CAPCD Rule 2.5

, Expiration of Applications , revised January 15, 1989

7. Submitted M CAPCD Rule 2.7

, Conditional Approval , revised January 15, 1989

8. Submitted M CAPCD Rule 2.10

, Further Information , revised May 15, 1 989