United States Environmental Protection Agency, Region 9 

Air Division 

Technical Support Document 

for 

EPA's Notice of Proposed Rulemaking 

for the 

California State Implementation Plan 

South Coast Air Quality Management District 

Rule 1714 – Prevention of Significant Deterioration for Greenhouse Gases 

Lisa Beckham 

Reviewed by Gerardo Rios 

August 2012 
Table of Contents 

Section Page

1. Introduction 1 

2. PSD Program SIP Revision Submittal 1 

3. What are the General Requirements of a SIP-Approved PSD Program? 2 

4. Rule Summary 3 

5. Rule Evaluation 4 

6. Program Transfer and Implementation Issues 7 

7. Section 110(a), 110(l), and 193 of the Act 7 

8. Recommendations 8 

9. Attachments 8 

 
Page 1 of 8 

1. Introduction

Part C of title I of the Clean Air Act (CAA or Act) contains the provisions for the Prevention of 

Significant Deterioration (PSD) of air quality in areas designated as “attainment” or 

“unclassifiable” for the national ambient air quality standards (NAAQS). Part D of title I of the Act 

contains the requirements for areas designated “nonattainment” for any NAAQS. Both parts C and 

D of the Act require pre-construction permit programs for certain new or modified stationary 

sources of pollutants. The PSD requirements under part C apply to certain new or modified sources 

that would be located within attainment areas, and apply to all “regulated NSR pollutants,” except 

those pollutants for which an area has been designated as “nonattainment.” The requirements 

under part D, referred to as “Nonattainment New Source Review,” apply to certain new or 

modified sources of nonattainment pollutants located in nonattainment areas. Collectively, the 

pre-construction permit requirements related to PSD and Nonattainment New Source Review are 

commonly referred to simply as “New Source Review” or “NSR.” Both of these programs apply to 

“major stationary sources” and “major modifications” as those terms are defined in Title 40 of the 

Code of Federal Regulations (CFR) Part 51, Subpart I. In addition to the regulation of major 

stationary sources, states are also required to adopt a program to provide for the regulation of the 

construction and modification of minor stationary sources and minor modifications at major 

sources, to assure that the NAAQS are achieved and/or maintained. These pre-construction 

program requirements are commonly referred to as “minor NSR” (see 40 CFR 51.160-164). This 

technicalsupport document (TSD) specifically addresses the requirements of Part C of title I of the 

Act and the implementing regulations at 40 CFR 51.166 governing PSD programs in State 

Implementation Plans (SIPs). 

2. PSD Program SIP Revision Submittal

On November 11, 2010, the South Coast Air Quality Management District (SCAQMD or District) 

adopted Rule 1714 – Prevention of Significant Deterioration for Greenhouse Gases (see 

Attachment 1). In a letter dated December 30, 2010, the California Air Resources Board (ARB) 

submitted the rule package to Region 9 of the United States Environmental Protection Agency 

(EPA) as a revision to the SCAQMD portion of the California SIP. The ARB is the California 

governor’s designee for submitting official revisions of the California SIP to EPA. The District 

currently does not have a SIP-approved PSD program. EPA’s approval of the ARB’s SIP submittal 

package into the California SIP would transfer authority and responsibility for implementation of 

the PSD permitting program, only as it pertains to greenhouse gases (GHGs), from EPA to the 

SCAQMD. Currently, sources located within the District are subject to the Federal 

Implementation Plan (FIP) provisions for PSD programs at 40 CFR 52.21. EPA delegated the 

implementation of this FIP to the District through a delegation agreement dated July 25, 2007 (see 

Attachment 2). However, the District believes this delegation agreement does not provide it with 

the ability to regulate GHGs under the PSD program, and, as a result, EPA is the current PSD 

permitting authority within the District for new and modified sources emitting GHGs (see 

Attachment 3). The December 30, 2010, SIP submittal package was considered complete 

according to the criteria in Appendix V to 40 CFR Part 51 on March 22, 2011. 
Page 2 of 8 

In a letter dated June 19, 2012, EPA requested that the District provide certain clarifications 

regarding District Rule 1714 and how the District would implement its rules to ensure that its PSD 

program for GHGs satisfies the requirements of 40 CFR 51.166 for PSD programs (see 

Attachment 4). The letter also requested that the District provide further confirmation and 

explanation concerning the District’s authority, personnel, and funding to implement the PSD 

program within the District pursuant to Clean Air Act Section 110(a)(2)(E)(i). The District 

provided the requested information in a letter dated August 15, 2012 (see Attachment 5). 

3. What are the General Requirements of a SIP-Approved PSD Program?

The PSD program is a preconstruction review and permitting program applicable to certain new 

major stationary sources and major modifications at existing major stationary sources. The 

specific requirements applicable to SIP-approved PSD programs are contained in 40 CFR 51.166. 

The PSD program applies to any regulated NSR pollutant (as defined in 40 CFR 51.166), except 

for pollutants designated nonattainment for a NAAQS. The CAA defines “nonattainment areas” as 

air quality planning areas that exceed the national primary or secondary NAAQS for a given 

criteria pollutant (or that contribute to ambient air quality in a nearby area that does not meet the 

NAAQS). In some instances the emission increases of a particular pollutant may be subject to the 

PSD program and the Nonattainment NSR program. For example, NOx emissions from a source in 

an area designated as attainment for the NO2 NAAQS and nonattainment for the ozone NAAQS 

would be subject to both permitting programs because NOx would be a PSD pollutant as well as a 

precursor to ozone, a nonattainment pollutant. 

The applicability of PSD to a particular source must be determined in advance of construction or 

modification and is pollutant-specific. The primary criterion in determining PSD applicability is 

whether the proposed project is sufficiently large (in terms of its emissions) to be a major 

stationary source or modification, both of which are described below. 

Section 169 of the CAA specifies the emissions threshold, depending on source category, which is 

used to determine whether a source is a “major emitting facility” and subject to PSD. For PSD 

purposes, a “major stationary source” is any source belonging to a specified list of 28 source 

categories

1

that emits or has the potential to emit 100 tons per year (tpy) or more of any air 

pollutant subject to regulation under the CAA, or belonging to any other source category that emits 

or has the potential to emit such pollutants in amounts equal to or greater than 250 tpy. A new 

source with a potential to emit (PTE) at or above the applicable “major stationary source 

threshold” is subject to PSD for any other regulated NSR pollutant emitted in “significant” 

amounts. Significance levels, which EPA has promulgated for criteria pollutants and certain other 

pollutants, represent a threshold for a de minimis contribution to air quality problems. When EPA 

has not set a significance level for a pollutant, PSD applies to an increase of the regulated pollutant 

in any amount (that is, in effect, the significance level is treated as zero). 

PSD also applies to existing sources that undertake a “major modification,” which occurs when: 

(1) there is a physical change, or change in the method of operation, at a “major stationary source;” 

 

1 See 40 CFR 51.166(b)(1)(i) for the 28-source category list. 
Page 3 of 8 

(2) the change results in a “significant” emissions increase of a pollutant subject to PSD regulation 

(at or above the significance level that EPA has set for the pollutant); and (3) there is a “significant 

net emissions increase” of a pollutant subject to PSD regulation that is at or above the significance 

level (as defined in 40 CFR 51.166(b)(23)). 

On January 2, 2011, GHGs became subject to regulation under the CAA. EPA adopted new 

provisions in 40 CFR 51.166 and 40 CFR 52.21 to tailor the applicability criteria that determine 

which sources would become subject to permitting requirements for GHG emissions under the 

PSD and title V programs of the CAA, known as the “Tailoring Rule”. (See 75 FR 31514). The 

Tailoring Rule revised the definition of “subject to regulation” in 40 CFR 51.166(b)(48) and 40 

CFR 52.21(b)(49) to establish specific emission thresholds that determine when GHGs are 

considered subject to regulation and therefore subject to PSD permitting requirements. The 

emission thresholds for GHGs are: 

1. For a new stationary source, 

a. A PTE of 100,000 tpy of CO2 equivalent emissions (CO2e), OR 

b. An emission increase of 75,000 tpy of CO2e at a source that is a new major 

stationary source for a pollutant other than GHGs. 

2. For an existing stationary source, 

a. An emission increase of 75,000 tpy of CO2e at a source that has a PTE of at least 

100,000 tpy of CO2e, OR 

b. A significant emissions increase of any pollutant other than GHGs and an increase 

of 75,000 tpy of CO2e. 

4. Rule Summary 

Rule 1714 – Prevention of Significant Deterioration for Greenhouse Gases only applies to GHG 

emissions. District Rule 1714 essentially incorporates by reference the federal PSD program, as it 

applies to GHGs, as codified in 40 CFR 52.21. The provisions of 40 CFR 52.21 serve as the FIP 

used by EPA to implement the required PSD program in areas that do not have a SIP-approved 

PSD program. 

Rule 1714 is comprised of five sections: 

(a) – Purpose 

(b) – Applicability 

(c) – Incorporation by Reference 

(d) – Requirements 

(e) – Public Participation 

Paragraph (a) outlines the purpose of the rule, which is to provide the preconstruction review 

requirements for GHGs. Paragraph (b) contains an applicability provision that states Rule 1714 

applies to any source that is subject to a GHG requirement in 40 CFR 52.21, as incorporated by 

reference in Rule 1714. With some minor revisions and exceptions, paragraph (c) incorporates by 
Page 4 of 8 

reference the provisions of 40 CFR 52.21 that apply to GHG requirements. Paragraph (d) identifies 

requirements necessary to administer the program. Paragraph (e) contains public noticing 

requirements for sources subject to Rule 1714.

5. Rule Evaluation

We reviewed the SIP submittal for Rule 1714 – Prevention of Significant Deterioration for 

Greenhouse Gases to ensure that it meets the requirements of title I of the Act, specifically part C 

(sections 160 through 169B), and current implementing regulations at 40 CFR 51.166. EPA has 

condensed the approval criteria contained in these various materials in this TSD, which describes 

the basis for our proposed action on the rule submittal. 

5.1. District Rule 1714 – Prevention of Significant Deterioration for Greenhouse Gases

The Act requires all states to submit a PSD program consistent with the requirements of 40 CFR 

51.166. EPA’s evaluation of Rule 1714 and how it meets the requirements for a GHGs-only PSD 

program is included in the attached document, Evaluation of 40 CFR 51.166 and District Rule 

1714 for the SCAQMD (Evaluation) (see Attachment 6). Our evaluation also relied upon 

additional clarifications provided by the District to EPA in the letter dated August 15, 2012 (see 

Attachment 5). These clarifications relate to certain procedural requirements that ensure the 

District’s GHG-only PSD program will be consistent with the requirements in 40 CFR 51.166. 

In general, Rule 1714 meets the requirements of 40 CFR 51.166 by incorporating by reference the 

specific provisions of 40 CFR 52.21 that are necessary to implement a state, GHG-only, PSD 

program. As mentioned above, 40 CFR 52.21 contains the FIP provisions used by EPA to 

implement the required PSD program in areas that do not have a SIP-approved PSD program. EPA 

considers the provisions of 40 CFR 52.21 to generally be consistent with the requirements of 40 

CFR 51.166. Therefore, only those provisions of Rule 1714 which warrant additional review are 

discussed below. 

5.2. Exclusions 

Paragraph (c)(1) of Rule 1714 excludes the following paragraphs from its incorporation by 

reference of 40 CFR 52.21: 

• (a)(1) – Plan disapproval 

• (b)(13) – definition for “baseline concentration” 

• (b)(14) – definition for “major source baseline date” and “minor source baseline date” 

• (b)(15) – definition for “baseline area” 

• (b)(55-58) and (cc) – equipment replacement program (ERP) provisions which were 

vacated by the United States Circuit Court of Appeals for the District of Columbia on 

March 17, 2006 

• (c) – Ambient air increments 

• (d) – Ambient air ceilings 

• (e) – Restrictions on area classifications 
Page 5 of 8 

• (g) – Redesignation 

• (h) – Stack heights 

• (i)(1)(i-v, ix-x) and (i)(6-8) – Exemptions 

• (k) – Source impact analysis 

• (l) – Air quality models 

• (m) – Air quality analysis 

• (o) – Additional impact analysis 

• (p) – Additional Requirements 

• (q) – Public participation 

• (s) – Environmental impact statements 

• (t) – Disputed permits or redesignations 

• (u) – Delegation of authority 

• (v) – Innovative control technology 

• (w) – Permit rescission 

• (aa) – Actuals PALs 

• (f), (x), (y), and (z) – “[Reserved]” 

EPA has reviewed these exclusions and, except for paragraph (q), concur that these excluded 

paragraphs are not necessary to implement a state PSD program for GHGs. Paragraph (q) of 40 

CFR 52.21 relates to public participation requirements and is further discussed in Section 5.5 of 

this TSD. 

We note that paragraphs (b)(13-15), (c), (d), (f), (h), (k), (l), (m), and (o) of 40 CFR 52.21 are 

requirements that generally apply to pollutants that have a NAAQS. The PSD program requires an 

analysis of these pollutantsto ensure emission increases do not cause or contribute to a violation of 

the NAAQS or associated ambient air increments. Because there is not a NAAQS for GHGs these 

requirements are not needed for a GHG-only PSD program. Additionally, as mentioned above, the 

District already administers these requirements of the PSD program under a delegation agreement 

between EPA and the District. 

5.3. Revised Terms 

5.3.1. Administrator 

Paragraph (c)(2) of Rule 1714 revises the term “administrator” incorporated by reference from 40 

CFR 52.21, as follows: 

• It defines the term “administrator” to mean “federal administrator” in 40 CFR 

52.21(b)(17), (b)(37)(i), (b)(43), b(48)(ii)(c), (b)(50)(i), and (b)(51). 

• It otherwise defines the term “administrator” to mean “Executive Officer” as 

defined in District Rule 102. 

Because 40 CFR 52.21 was written to provide a framework for EPA to administer the PSD 

program in areas that do not have a SIP-approved PSD program, the term “Administrator” as used 
Page 6 of 8 

in section 52.21 refers to EPA Administrator. Upon EPA’s approval of the District’s PSD SIP 

submittal, the SCAQMD will be administering the PSD program for GHGs within the District, but 

certain authorities are retained for the EPA Administrator, per 40 CFR 51.166. Therefore, the 

District’s revisions described above are intended to differentiate between those provisions that will 

apply to the District as the permit authority and those that will continue to refer to EPA (as the 

“federal administrator”). We find these revisions acceptable. 

5.4. Rule 1714(d) - Requirements 

Paragraph (d) of Rule 1714 includes additional requirements beyond those specifically included in 

40 CFR 52.21 that the District finds necessary to administer the PSD program. These requirements 

include: 

• An owner or operator must obtain a PSD permit pursuant to Rule 1714 prior to 

beginning actual construction of a new major stationary source, a major modification, 

as defined in 40 CFR 52.21(b); 

• The Executive Officer shall require compliance with this rule, if applicable, prior to 

issuing a PSD permit for GHG emissions as required by CAA Section 165. 

EPA has reviewed these requirements and determined they are consistent with the requirements of 

40 CFR 40 CFR 51.166. 

5.5. Public Participation 

EPA’s Evaluation provides an analysis of how the District meets the requirements of 40 CFR 

51.166(q) for public participation. The District’s public participation requirements for issuing PSD 

permits for GHGs are found in paragraph (e) of Rule 1714. 

5.6. Revisions to 40 CFR 52.21 Since Incorporation by Reference 

Rule 1714 incorporates 40 CFR 52.21 by reference without specifying an “as of date” for 

incorporated provisions. However, the rule was adopted by the District on November 5, 2010 and 

according to the ARB, Rule 1714 is considered to have incorporated 40 CFR 52.21 as it existed on 

the date that Rule 1714 was adopted by the District. Accordingly, any changes made to 40 CFR 

52.21 after November 5, 2010 are not a part of Rule 1714. 

On July 20, 2011, the definition of “subject to regulation” was revised in 40 CFR 

51.166(b)(48)(ii)(a) and 40 CFR 52.21(b)(49)(ii)(a) to exclude the applicability of CO2 emissions 

from biogenic sources from being considered “subject to regulation” until July 21, 2014. Because 

Rule 1714 was adopted prior to this federal rule revision, Rule 2410 does not include this 

provision. However, because the District’s definition is more stringent than the revised definition 

in 40 CFR 51.166, we find this difference acceptable. 
Page 7 of 8 

6. Program Transfer and Implementation Issues

As discussed above, in a letter dated June 19, 2012, EPA requested, among other things, that the 

District provide further confirmation and explanation concerning the District’s authority, 

personnel, and funding to implement the PSD program for GHGs within the District pursuant to 

CAA Section 110(a)(2)(E)(i). The District provided the requested information in a letter dated 

August 15, 2012 (see Attachment 5). 

Pursuant to section 110(a)(2)(E)(i) of the Act, the District’s previous submittals and its letter 

demonstrate that the District has the authority under State statute and/or rule to administer the PSD 

permit program for GHGs, including but not limited to the authority to administer, process and 

issue any and all PSD permit decisions regulating GHGs. The District’s letter also demonstrates 

that the District has adequate personnel and funding to administer, implement and enforce the PSD 

program for all pollutants, not just GHGs. 

In general, as part of the PSD program transfer process that occurs upon approval of a PSD SIP 

submittal, existing EPA-issued permits may in some cases be transferred to the new permitting 

authority for administration. However, in this case, EPA has not issued any PSD permits for GHG 

emissions within the District, and as a result there are no existing PSD permits regulating GHGs 

that could potentially be transferred to the District. We note that PSD applications for sources 

within the District that are subject to PSD review and are currently under review by EPA would be 

transferred to the District for processing upon the effective date of SIP approval of Rule 1714. 

EPA, the District, and the applicants have been working together on these applications to ensure 

that these applications are transferred smoothly from EPA to the District. 

We also note that as a result of approval of Rule 1714 into the SIP, GHG PSD permits issued by the 

District will not be subject to review by EPA’s Environmental Appeals Board (EAB). However, 

PSD permits issued in the District for all other PSD-regulated pollutants are covered by the 

delegation agreement, including the requirements of 40 CFR 52.21 and Part 124, and therefore will 

continue to be subject to review by the EAB. The approval of this rule into the SIP does not 

change the District’s obligation to meet the requirements of the delegation agreement (i.e., 

Regulation XVII, 40 CFR 52.21, and Part 124) for PSD permitting for all PSD-regulated pollutants 

other than GHGs; it simply adds the specific requirements of Rule 1714 for GHGs. 

If approved, EPA will continue its oversight role of the District’s PSD permitting program (both 

the delegated and SIP-approved portions), as intended by the Act. 

7. Sections 110(a), 110(l), and 193 of the Act

CAA section 110(a) requires, among other things, that the requirements of SIP rules be 

enforceable. Sources subject to Rule 1714 are required to meet emission limits and other measures 

for GHGs for the prevention of significant deterioration of air quality, which meets the 

enforceability requirement in section 110(a). 
Page 8 of 8 

We have also evaluated this SIP revision to determine whether it would interfere with any 

applicable requirement concerning attainment and reasonable further progress (RFP) or any other 

applicable requirement of the Act (CAA section 110(l)) or whether it would modify, in a 

nonattainment area, any SIP-approved control requirement in effect before November 15, 1990 

(CAA section 193). 

We find that our approval of the submittal would comply with CAA section 110(l), because the 

requirements of this SIP revision are essentially equivalent to, and at least as stringent as, those of 

the FIP codified in 40 CFR 52.21, as applicable to GHGs. Approval of this SIP revision would 

merely result in the transfer of authority for the GHG portion of the PSD program from EPA to the 

District, and therefore would not result in any substantive changes to PSD program requirements, 

other CAA requirements, or air quality. Specifically, because there is not a NAAQS for GHG 

emissions, the addition of this rule into the SIP is not expected to affect the District’s attainment or 

maintenance of any NAAQS. 

Further, section 193 of the CAA does not apply to this proposed action because this submittal to 

incorporate PSD requirements into the SIP does not address nonattainment pollutants. 

8. Recommendations

Pursuant to section 110(k)(3) of the Act, we recommend full approval of District Rule 1714 – 

Prevention of Significant Deterioration for Greenhouse Gases. We recommend approval based on 

our determination that the submittal complies with the applicable statutory and regulatory 

provisions requiring regulation of major stationary sources, in particular, part C of title I of the 

Act. If we finalize this action as proposed, our action would be codified through revisions to 40 

CFR 52.220 – Identification of plan and 40 CFR 52.270 – Significant deterioration of air quality. 

9. Attachments 

• Attachment 1 – Rule 1714 – Prevention of Significant Deterioration for Greenhouse Gases

• Attachment 2 – Delegation Agreement between EPA Region 9 and the South Coast 

AQMD, July 25, 2007 

• Attachment 3 – Letter from Barry R. Wallerstein, Executive Officer, SCAQMD, to Jared 

Blumenfeld regarding GHG Tailoring Rule and Delegation of Authority for 

Implementation, dated July 30, 2010 

• Attachment 4 – Letter dated June 19, 2012, from Gerardo Rios, Chief, Air Permits Office 

to Mohsen Nazemi, Deputy Executive Officer, Engineering and Compliance, South Coast 

AQMD 

• Attachment 5 – Letter dated August 15, 2012, from Mohsen Nazemi, Deputy Executive 

Officer, South Coast AQMD, to Gerardo Rios, Chief, Air Permits Office 

• Attachment 6 – Evaluation of 40 CFR 51.166 and SCAQMD Rule 1714, EPA Region 9, 

June 2012