Santa Barbara County Air Pollution Control District 

STAFF REPORT – January 20, 2011 

NEW RULE AND AMENDED RULES TO 

IMPLEMENT EPA’S FEDERAL PREVENTION OF SIGNIFICANT DETERIORATION AND PART 70 

GREENHOUSE GAS TAILORING RULE 

Rules 102, 202, 370, 810, and 1301

 

BACKGROUND 

The Santa Barbara County Air Pollution Control 

District (District) proposes new/amended rules to 

implement the United States Environmental 

Protection Agency’s (EPA’s) requirements on 

greenhouse gases.a

 Rulemaking is needed to provide 

the regulated industry relief from applying “criteria” 

pollutant emission thresholds to greenhouse gas 

(GHG) emissions. This rule action will implement 

the EPA emission thresholds for GHGs, which are 

higher than those for "criteria" air pollutants. 

“Criteria” pollutants include oxides of nitrogen, 

reactive organic compounds, particulate matter, 

oxides of sulfur, and carbon monoxide, but not 

GHGs. 

On April 2, 2007, the U.S. Supreme Court found that 

GHGs are air pollutants covered by the federal Clean 

Air Act (CAA). The U.S. Supreme Court also found 

that EPA was required to determine whether or not 

emissions of GHGs from new motor vehicles cause 

or contribute to air pollution that may reasonably be 

anticipated to endanger public health or welfare. 

On December 15, 2009, EPA’s Administrator made 

the finding that six key GHGs in the atmosphere 

threaten the public health and welfare of current and 

future generations. EPA’s Administrator also found 

that the combined emissions of these well-mixed 

gases from new motor vehicle engines contribute to 

the greenhouse gas pollution which threatens public 

health and welfare. By determining that GHG 

emissions from mobile sources contribute or cause air 

pollution that endanger public health or welfare, EPA 

also established that it is required to regulate GHG 

emissions from stationary sources. 

On May 13, 2010, EPA issued regulations under the 

CAA to require permitting of larger stationary 

sources of greenhouse gases. These regulations 

 

a

 “Title V” in the EPA rule title refers to the federal 

permit program of the Clean Air Act (CAA or Act). 

The District implements Title V through local 

Regulation XIII, Part 70 Operating Permits. Part 70 

refers to the 40 CFR section that implements Title V. 

This Background Paper uses the term “Part 70” in 

lieu of “Title V,” for consistencies with terminology 

in the local rules. 

trigger CAA permitting requirements under the 

federal Prevention of Signification Deterioration 

(PSD) and Operating Permit (Part 70) programs for 

GHG emissions. Because GHG emissions from most 

sources generally exceed existing levels of 

significance for criteria pollutants, EPA "tailored" 

their regulations for when they included greenhouse 

gases. Without this tailoring, GHGs would be 

subject to the same permit thresholds as “criteria” air 

pollutants. The federal PSD and Part 70 permitting 

levels for non-GHG pollutants are: 

 PSD Permitting: 250 or 100 tonsb

 per year (tpy) 

(depending on the source type), and 

 Part 70 Permitting: 100 tpy. 

These thresholds are based on a source’s potential to 

emit and are on a per pollutant basis. Sources above 

these levels are considered major sources. 

Treating GHGs as “criteria” air pollutants would 

greatly increase the number of permitted small 

sources.[Ref. 1 & 2] To provide an alternative, EPA 

adopted a “Prevention of Significant Deterioration 

and Part 70 Greenhouse Gas Tailoring Rule” 

(Tailoring Rule). This rule, which became final on 

May 13, 2010 [Ref. 3], establishes thresholds for 

permitting in two steps: 

A. Step 1 - Beginning January 2, 2011: This step 

applies to stationary sources that are major due 

to their non-GHG pollutant emission rates. The 

following provisions will apply: 

PSD: For new major sources (of non-GHG 

gases), permits will be required to address GHG 

Best Available Control Technology (BACT) if 

they will emit or will have the potential to emit 

75,000 tpy carbon dioxide equivalent (CO2e) or 

more.c

 

 

b

 One ton equals 2,000 pounds. 

c

 Carbon dioxide equivalent is described in item 3 of 

Appendix B. Click here to go to that description. 
STAFF REPORT - Tailoring Rules Project Page 2 

January 20, 2011 

Santa Barbara County APCD 

For existing major sources, permits will be 

required to address GHG Best Available Control 

Technology [BACT]) if they: 

1. Increase net GHG emissions by at least 

75,000 tons per year tpy of carbon dioxide 

equivalent (CO2e), and 

2. Have a significant net emissions increase in 

at least one non-GHG pollutant.a

Part 70 Sources: Sources must include GHG 

emission data in their applications and address 

any applicable GHG requirements when they 

apply for, renew, or revise their permits. 

B. Step 2 - Beginning July 1, 2011:b

 Sources not 

already subject to federal PSD or Part 70 

permitting may become subject to such 

permitting based solely on their GHG emissions. 

The following provisions will apply: 

PSD: New sources with PTE emissions above 

the 100,000 tpy CO2e threshold must obtain PSD 

permits and address GHG BACT. 

Existing sources that are major sources based on 

criteria pollutant thresholds or GHG emissions 

above 100,000 tpy CO2e will now become 

subject to PSD permitting if they undertake 

modifications that increase emissions of GHGs 

by at least 75,000 tpy CO2e or have a significant 

emissions increase in at least one non-GHG 

pollutant. 

Part 70: An existing or newly constructed 

source will become subject to Part 70 permitting 

if GHGs equal or exceed the 100,000 tpy CO2e 

(potential to emit) threshold. Such sources have 

one year to submit a Part 70 application. The 

Part 70 permits must include any applicable 

GHG requirements. 

EPA has committed to developing a Tailoring Rule 

Step 3 (effective July 1, 2013). In Step 3, additional 

sources may become subject to PSD and Part 70 

requirements if GHGs thresholds are lowered. 

 

a

 40 CFR 52.21(b)(49)(iii) provides information on 

“significant emissions increase.” 

b

 Sources subject to the Step 1 provisions will 

continue to be covered by those requirements. 

To implement the EPA Tailoring Rule requirements, 

the District proposes amendments to four rules and 

the adoption of one new rule: 

1. Amended Rule 102, Definitions, 

2. Amended Rule 202, Exemptions to Rule 201 

3. Amended Rule 370, Potential to Emit ̶ 

Limitations for Part 70 Sources 

4. New Rule 810, Federal Prevention of Significant 

Deterioration (PSD) 

5. Amended Rule 1301, Part 70 Operating Permits ̶ 

General Information 

The proposed new and amended rules include 

changes to incorporate the GHG applicability 

thresholds and the two step phase in requirement. 

Additions and amendments include: 

a. A new "greenhouse gases" definition in Rule 

102; 

b. References in several rules to federal 

provisions that specify when stationary 

sources of GHGs emissions are “subject to 

regulation”; 

c. Amended definitions for terms like 

attainment pollutant, major stationary 

source, and Part 70 Source; and 

d. An amendment to Rule 202.D.2 to exclude 

GHGs when calculating aggregate threshold 

emissions. 

It is important to note that mainly existing Part 70 

permit sources in Santa Barbara County will be 

required to comply with GHG permitting 

requirements at this time. Most permit holders in the 

district will not be impacted by these new 

requirements. We only anticipate up to two 

additional stationary source permits that may become 

subject to Part 70 permits during Step 2. 

The Tailoring Rule provisions benefit the regulated 

community by increasing the GHG emission 

threshold that would otherwise trigger PSD or a Part 

70 permit. For example, without the Tailoring Rule 

provisions, a source with a mid-size natural-gas fired 

commercial water heater rated at 0.2 MMBtu/hour 

would require a Part 70 permit. Under the Tailoring 

Rule provisions, a source consisting of one boiler will 

not trigger the Part 70 provisions unless the boiler is 

197 MMBtu/hour or greater.c

 

 

 

c

 Based on the boiler’s CO2e emissions alone. 
STAFF REPORT - Tailoring Rules Project Page 3 

January 20, 2011 

Santa Barbara County APCD 

PROPOSED RULES 

The proposed rules are contained in Attachment 4 of 

the “EPA GHG Tailoring Rule Project” Board 

Package. The following summarize the 

new/amended rule provisions. 

Rule 102, Definitions 

The District proposes a new “Greenhouse Gas” or 

“Greenhouse Gases” definition that refers to the 

state definition. In addition, the definition of 

attainment pollutant has been clarified to exclude 

GHG. 

Rule 202, Exemptions to Rule 201

Rule 202.D.2 includes a change to ensure existing 

permit exemptions will continue to apply to sources 

of GHGs. 

Rule 370, Potential to Emit ̶

Limitations for Part 70 Sources 

Rule 370 provides for sources to be exempt from 

Rule 1303, Part 70 Permits ̶ Permits based on actual 

emission levels. Exemptions may apply if actual 

stationary source emissions are maintained less than 

50% of a Part 70 threshold, as demonstrated by 12 

months of records consistent with the rule 

requirements. 

Definitions in Rule 370 are amended for consistency 

purposes and to reference the federal GHG permitting 

thresholds (i.e., the levels at which GHGs are 

“subject to regulation”) specified in the Greenhouse 

Gas Tailoring Rule. The Rule 370 amendments also 

incorporate the federal definition of GHGs, found in 

the Part 70 (Title V) regulation (40 CFR 70.2). 

Rule 810, Prevention of Significant 

Deterioration (PSD) 

Proposed new Rule 810 will incorporate by reference 

the federal Prevention of Significant Deterioration of 

Air Quality rule requirements. Once approved, the 

District will request EPA to incorporate it into the 

State Implementation Plan. 

Proposed Rule 810 is an EPA-approved model rule. 

If adopted exactly as proposed, EPA will accept the 

rule. 

The District has an existing PSD rule: Rule 803, 

Prevention of Significant Deterioration (PSD). On 

March 3, 2003, EPA revoked the District’s PSD 

delegation authority. The District is retaining Rule 

803 as a locally enforceable rule. This is consistent 

with Senate Bill 288 anti-backsliding provisions and 

the California Health and Safety Code, Section 

42504(a). Rule 803 was adopted before December 

30, 2002 and Section 42504(a) does not allow the 

District to make the rule less stringent. For these 

reasons, Rule 803 will continue to be a local PSD 

rule and Rule 810 will be the federal PSD rule. 

 

Rule 1301, Part 70 Operating Permits ̶

General Information 

 

Similar to the changes made to Rule 370, definitions 

in Rule 1301 are amended for consistency purposes 

and to reference the federal GHG permitting 

thresholds (i.e., the levels at which GHGs are 

“subject to regulation”) specified in the Greenhouse 

Gas Tailoring Rule. The Rule 1301 amendments also 

incorporate the federal definition of GHGs, found in 

the Part 70 (Title V) regulation (40 CFR 70.2). 

Appendix A, Clarification of Rule Issues, provides 

additional information the implementation of the 

EPA Greenhouse Gas Tailoring Rule provisions. 
STAFF REPORT - Tailoring Rules Project Page 4 

January 20, 2011 

Santa Barbara County APCD 

EMISSION REDUCTION / COST-EFFECTIVENESS 

Emission Reductions 

The new and proposed amended rules are 

administrative in nature relative to permitting 

actions. They are not control measures. Hence, 

there are no emission reductions expected from the 

proposed rule action. 

Cost-Effectiveness and 

Incremental Cost-Effectiveness 

There are no cost-effectiveness or incremental 

cost-effectiveness figures relative to this 

rulemaking task. The new/amended rules are 

not implementing a control measure or retrofit 

control requirements. Further, there are no 

emission reductions anticipated from them. 

Thus, the requirements of California Health 

and Safety Code (H&SC) Section 40703 and 

Section 40920.6 do not apply. 

ANALYSIS OF EXISTING FEDERAL AND DISTRICT REGULATIONS 

H&SC Section 40727.2(a) requires districts to provide a written analysis of existing regulations prior to adopting, 

amending or repealing a regulation. However, the proposed rule action is consistent with categories described in 

H&SC Section 40727.2(g). Hence, the requirements of H&SC Section 40727.2(a) are satisfied. 

COMMENTS AND PUBLIC MEETINGS 

Comments 

Attachment 3 to the “EPA GHG Tailoring Rule 

Project” Board Package contains written public 

comments received before December 29, 2010. This 

attachment also contains the APCD’s responses to the 

comments. Written comments received between 

December 29, 2010 and January 20, 2011, will be 

provided to Board with the District’s response during 

the January 20, 2011 Board Hearing. 

Public Meetings 

STAKEHOLDERS MEETINGS 

The District met individually with representatives of 

sources that are anticipated to require Part 70 permits 

for the first time due to the rule action. Table 2 in the 

“Impacts to Industry and the District” section of this 

Staff Report provides a list of these sources. 

COMMUNITY ADVISORY COUNCIL MEETING, 

(DECEMBER 8, 2010) 

Staff briefed the CAC on: 

1. the EPA Tailoring Rule requirements, and 

2. on how the new/amended rules will implement 

them. 

The Community Advisory Council passed a motion 

to recommend that the Board approve the proposed 

amended rules and new Rule 810 dated December 8, 

2010. 

PUBLIC HEARING ON THE ADOPTION OF THE 

PROPOSED AMENDED RULES, (JANUARY 20, 

2011) 

The Board is scheduled to consider the adoption of 

the new/amended rules at the January 20, 2011 Public 

Hearing. 
STAFF REPORT - Tailoring Rules Project Page 5 

January 20, 2011 

Santa Barbara County APCD 

COMPARISON OF ADJOINING AIR POLLUTION CONTROL DISTRICT RULES 

The adjoining air districts are in the progress of adopting similar rule provisions to implement the EPA Tailoring 

Rule requirements. 

IMPACTS TO INDUSTRY AND THE DISTRICT 

Step 1 of the Tailoring Rule will only have a minor impact on existing Part 70 source permit holders. Table 1 

identifies the sources that currently have Part 70 permits and will need to comply with Step 1 of the Tailoring Rule. 

In addition Table 1 lists EPA major sources that could possibly trigger PSD requirements for GHG in the future. 

Table 1. EXISTING SOURCES EPA MAJOR SOURCES (250 tpy or Greater) 

AND/OR PART 70 PERMIT SOURCES 

Stationary 

Source 

Stationary Source Name EPA Major 

Source 

(250 tpy) 

Part 

70 

02667 BreitBurn Energy- Orcutt Hill 1 1 

01735 Celite Corporation 1 1 

08713 City of Santa Maria Landfill 1 

03707 County of SB-Tajiguas Landfill 1 

08003 Dos Cuadras - South County 1 

01073 E & B - South Cuyama 1 1 

01482 ExxonMobil - SYU Project 1 1 

02658 Greka South Cat Canyon 1 1 

08001 Pacific Operators - Carpinteria 1 

04632 Pt. Pedernales/Lompoc Oil Fields 1 

05019 So Cal Gas - La Goleta 1 1 

01325 The Point Arguello Project 1 1 

00027 Venoco - Carpinteria 1 1 

01063 Venoco - Ellwood 1 

10344 Wm. Bolthouse Farms 1 1 

 TOTALS 9 15 

Table 2 identifies the sources with CO2e of 100,000 tons per year and greater. These sources will be subject to Part 

70 permitting requirements under the Tailoring Rule Step 2. If a qualifying modification is made to these sources, 

they will also be subject to federal PSD permitting requirements. 
STAFF REPORT - Tailoring Rules Project Page 6 

January 20, 2011 

Santa Barbara County APCD 

Table 2. EXISTING SOURCES THAT MAY BECOME SUBJECT TO 

THE PART 70 PERMITTING REQUIREMENTS 

Stationary 

Source 

Stationary Source Name 

02795 UCSB 

01195 Vandenberg Air Force Base 

According to the EPA Overview of Part 70 [Ref. 1 & 2]: 

A source generally must apply for a Part 70 permit within 1 year of first becoming subject to permitting - 

for new sources; this is usually within one year of commencing operation. The application must include, 

among other things, identifying information, a description of emissions and other information necessary to 

determine applicability of requirements and information concerning compliance with those requirements. 

The permitting authority uses this information to develop the source’s operating permit. [. . .] 

REFERENCES 

1. Prevention of Significant Deterioration and Title 

V Greenhouse Gas Tailoring Rule, 40 CFR Parts 

51, 52, 70, and 71, Federal Register, Volume 75, 

No. 106, U.S. Environmental Protection Agency, 

June 3, 2010. 

2. Federal Regulation citation: 75 FR 31514, June 

3, 2010. 

3. Fact Sheet, Final Rule: Prevention of 

Significant Deterioration and Title V 

Greenhouse Gas Tailoring Rule, U.S. 

Environmental Protection Agency, April 13, 

2010. (Available at: 

http://www.epa.gov/nsr/actions.html#may10) 

APPENDIX 

Appendix A: Clarification of Rule Issues
STAFF REPORT - Tailoring Rules Project Page A-1 

January 20, 2011 

Santa Barbara County APCD 

Appendix A 

Santa Barbara County 

Clarification of Rule Issues 

The following text provides clarification of rule issues. To help the reader locate a specific issue, a table of contents 

is provided below. 

Table 1. TABLE OF CONTENTS FOR THE CLARIFICATION OF RULE ISSUES 

Rule Section or 40 

CFR Part 

Topic Page 

40 CFR 52.21 and 70 Request to Clarify PSD and Part 70 Requirements under Step 2 of the 

Tailoring Rule 

B-1

40 CFR 52.21 and 70 Availability of a Guidance Document on How PSD and Part 70 GHG 

Requirements Apply for the Two Phases 

B-2

40 CFR 

51.166(b)(48)(ii), 

52.21(b)(49)(ii), and 

70.2 

Meaning of the “Carbon Dioxide Equivalent” or “CO2e” term and a 

description of how it is calculated 

B-3

40 CFR 52.21 and 70 

Request to Clarify PSD and Part 70 Requirements under Step 2 of the Tailoring Rule

Questions/Issues: The following is based on information in an EPA fact sheet: 

 Step 2 will build on Step 1. In this phase, PSD permitting requirements will cover for the first time 

new construction projects that emit GHG emissions of at least 100,000 tpy even if they do not exceed 

the permitting thresholds for any other pollutant. Modifications at existing major sources that increase 

GHG emissions by at least 75,000 tpy will be subject to permitting requirements, even if they do not 

significantly increase emissions of any other pollutant.

 based on their GHG emissions even if they would not apply based on emissions of any other pollutant. 

Facilities that emit at least 100,000 tpy CO2e will be subject to Part 70 permitting requirements.

1. Regarding the first bullet, if a new major source or a major modification results based on GHG emissions 

only, does the PSD analysis have to consider BACT and an Air Quality Impact Analysis (AQIA) for all 

pollutants, or solely GHG? 

2. Regarding the second bullet, if GHG emissions alone cause a source to become a Part 70 source, we 

presume the permit has to address all applicable requirements in the Part 70 permit, and not just applicable 

requirements for GHG. Correct? 

Answer/Response: Yes for a given project where the only significant increase in emissions is for GHG (not any 

other PSD pollutant, such as NOx at 40 tpy), then a BACT analysis is only required for GHG. No AQIA is 

required for GHG, since there is no National Ambient Air Quality Standard for GHG. In general, the PSD 

requirements apply to any pollutant for which a significant increase occurs, even if the source is not major for 

that particular pollutant, as long as they are major for at least one PSD pollutant. 

For the second question, you are correct. Once the requirement to obtain a Part 70 permit is triggered, because 

the source is a major source of GHGs, then just like any other Part 70 permit, it must identify all applicable 

requirements and include them in the Part 70 permit. 

Click here to return to the Table of Contents. 
STAFF REPORT - Tailoring Rules Project Page A-2 

January 20, 2011 

Santa Barbara County APCD 

Availability of a Guidance Document on How the PSD and Part 70 GHG Requirements Apply for the Two Phases

Questions/Issues: Is there a guidance document on how the PSD and Part 70 GHG requirements apply for 

the two phases? We think it may be a useful to have such a document to facilitate the explanation on how 

the different provisions are triggered and at what thresholds.

Answer/Response: The EPA Greenhouse Gas Tailoring Rule Federal Register (75 FR 31514, June 3, 2010) 

includes general information and an overview of the requirements. Also, the EPA document, “PSD and 

Title V Permitting Guidance For Greenhouse Gases,” November 2010, provides information on the 

permitting procedures. This document is available from this web page: 

http://www.epa.gov/nsr/guidance.html. The following summary tables and information are provided to 

help clarify the major EPA Tailoring Rule requirements. 

TYPE STEP 1: 01/02/2011 - 06/30/2011 STEP 2: 07/01/2011 - 06/30/2013 

Part 70 

 Covers Existing Part 70 Sources All sources ≥ 100,000 tpy CO2e, 

including new construction 

projects. 

PSD 

 Covers Existing EPA Major Source 

(250 tpy or greater) Sources with 

modifications that result in 

emission increases ≥ 75,000 tpy 

CO2e 

New construction projects with ≥

100,000 tpy CO2e 

Modifications at existing major 

source facilities with increase of ≥

75,000 tpy CO2e 

Note: The 75,000 tpy and 100,000 tpy figures are in terms of potential to emit (not actuals). 
STAFF REPORT - Tailoring Rules Project Page A-3 

January 20, 2011 

Santa Barbara County APCD 

The following clarifying information is based on correspondence from EPA staff: 

It should be noted that for Part 70, there are only two things that changes come January 2, 2011. First, all 

new Part 70 applications must include sufficient GHG emission data in their application so that the District 

can determine if any GHG requirements apply. Second, for now, the only GHG applicable requirement are 

PSD permit terms and conditions related to GHGs. So, unless a source has a pending PSD permit action 

that will address GHGs, nothing will change for an existing Part 70 source. Come July 1, 2011, nothing 

changes for existing Part 70 sources, but if an existing or new source is now classified as a major source 

because of their GHG emissions, then they have 12 months to submit a complete Part 70 application. For 

the PSD program, if a source that needs a federal PSD permit does not obtain it before January 2, 2011, 

then the PSD permit must also evaluate GHGs. If it would only need a PSD permit because of GHGs, it 

must either begin actual construction prior to July 1, 2011, or obtain a PSD permit. 

Note: It is our understanding that the above statement, “For the PSD program, if a source that needs a federal PSD 

permit does not obtain it before January 2, 2011, then the PSD permit must also evaluate GHGs,” means: 

1. The existing major source requires a revised federal PSD permit because of an increase in emissions of a 

pollutant other than GHGs, 

2. “Evaluate GHG” refers to calculating and verifying whether any GHG emission increases, based on 

potential to emit, are also subject to PSD requirements during the federal PSD permit process, and 

3. The source will be subject to the PSD GHG BACT requirement if the GHGs have the potential to emit 

75,000 tpy CO2e or more unless the source accepts a synthetic minor limit in their PSD permit to limit their 

PTE below the 75K tpy CO2e threshold. 

40 CFR 51.166(b)(48)(ii), 52.21(b)(49)(ii), and 70.2 

Meaning of the “Carbon Dioxide Equivalent” or “CO2e” term and a description of how it is calculated 

Questions/Issues: What does the term carbon dioxide equivalent or CO2e mean and how is it calculated? 

Answer/Response: This term is defined in various new 40 CFR subparts as follows: 
STAFF REPORT - Tailoring Rules Project Page A-4 

January 20, 2011 

Santa Barbara County APCD 

1. 40 CFR Part 51.166(b)(48)(ii) and Part 52.21(b)(49)(ii): [. . .] the term tpy CO2 equivalent emissions 

(CO2e) shall represent an amount of GHGs emitted, and shall be computed as follows: 

(a) Multiplying the mass amount of emissions (tpy), for each of the six greenhouse gases in the pollutant 

GHGs, by the gas’s associated global warming potential published at Table A–1 to subpart A of part 

98 of this chapter— Global Warming Potentials. 

(b) Sum the resultant value from paragraph (b)(48)(ii)(a) of this section for each gas to compute a tpy 

CO2e. 

2. 40 CFR Part 70.2: The term tpy CO2 equivalent emissions (CO2e) shall represent an amount of GHGs 

emitted, and shall be computed by multiplying the mass amount of emissions (tpy), for each of the six 

greenhouse gases in the pollutant GHGs, by the gas’s associated global warming potential published at 

Table A–1 to subpart A of part 98 of this chapter—Global Warming Potentials, and summing the resultant 

value for each to compute a tpy CO2e. 

Click here to return to the Table of Contents. 

Click here to return to the list of Appendices in the Staff Report.