Technical Support Document

for

EPA's Notice of Proposed Rulemaking

for the 

California State Implementation Plan

Placer County Air Pollution Control District

Rule 502 New Source Review 

Prepared by:

Laura Yannayon

Reviewed by:

Gerardo Rios

Air Division, Permits Office

United States Environmental Protection Agency, Region IX

San Francisco, California

February 8, 2013
Table of Contents

Section Page

Introduction 1

NSR Program SIP Revision Submittal 1

Background 1

Rule Summary 2

Rule Evaluation 2

Section 110(l) of the Act 4

Section 193 of the Act 4

Recommendations 5

Attachments 6
1

Introduction

Part D of title I of the Clean Air Act (CAA or Act) contains the requirements for areas 

designated “nonattainment” for any of the National Ambient Air Quality Standards (NAAQS). 

Among other things, Part D requires pre-construction permit programs for certain new or 

modified stationary sources of nonattainment pollutants in nonattainment areas, referred to as 

“Nonattainment NSR” (NSR). The NSR program applies to “major” stationary sources and 

“major modifications” as those terms are defined in 40 CFR Part 51, Subpart I. 

NSR Program SIP Revision Submittal

Rule 502 –New Source Review (NSR) was adopted by the Placer County Air Pollution Control 

District (PCAPCD or District) on October 13, 2011 and submitted to EPA via the California Air 

Resources Board (ARB) by a letter dated November 18, 2011. The District adopted Rule 502 to 

implement the federal nonattainment NSR program requirements in Placer County.

ARB is the governor’s designee for submitting official revisions of the California State 

Implementation Plan (SIP) to EPA, and PCAPCD is the local agency responsible for regulating 

the construction and modification of stationary sources within Placer County.

Background

On July 27, 2011, EPA finalized a limited approval and limited disapproval of PCAPCD Rule 

502 –New Source Review (NSR). See 76 FR 44809. The effect of this action was to incorporate

Rule 502 into the SIP, in place of existing SIP Rule 508 –New Source Review, and to trigger 

sanctions clocks with respect to certain provisions of the rule that did not satisfy the 

requirements of section 110 and title I, part D of the CAA. Sanctions will be imposed under 

section 179 of the Act according to 40 CFR 52.31 unless EPA approves SIP revisions that 

correct the identified rule deficiencies by February 26, 2013. PCAPCD’s submitted Rule 502 is

intended to address these previously identified rule deficiencies.

The CAA defines a “nonattainment” area as any area that does not meet (or that contributes to 

ambient air quality in a nearby area that does not meet) the national primary or secondary 

NAAQS for a pollutant. CAA 107(d)(1)(A)(i). The Sacramento Valley Air Basin and Mountain 

Counties Air Basin portions of Placer County are currently designated and classified as severe 

nonattainment for the 1997 and 2008 8-hour ozone NAAQS. The Sacramento Valley Air Basin 

portion of Placer County is currently designated nonattainment for the 2006 24-hour PM2.5

NAAQS. See 40 CFR 81.305. Therefore, California is required to implement a SIP-approved 

NSR program for the Placer area that applies, at minimum, to the following NAAQS pollutants 

and precursor pollutants: volatile organic compounds (VOCs), nitrogen oxides (NOx), particular 

matter of 2.5 microns or less (PM2.5) and sulfur oxides (SOx). VOCs and NOx are subject to 

NSR as precursors to ozone, and NOx and SOx are subject to NSR as precursors to PM2.5. See 

40 CFR 51.165(a)(1)(xxxvii)(C). Rule 502 constitutes the District’s non-attainment major source 

program, as well as its minor source program, for all regulated NSR pollutants. 
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Rule Summary

Rule 502 contains the substantial requirements of the NSR program and is comprised of six 

sections: Section 100 – General, Section 200 – Definitions, Section 300 – Standards, Section 400 

– Application Processing, Section 500 – Additional Provisions for Power Plants, and Section 600 

– Monitoring and Records. Section 100 includes provisions that outline the purpose and 

applicability of the rule, and public notice thresholds. Section 200 contains 59 definitions (five of 

which are new), and clarifies which other rules may be used to define a term if it is not defined 

within this section. Section 300 contains the requirements that apply to projects undergoing new 

source review, including Best Available Control Technology (BACT), emission offset 

requirements, as well as the calculation methodologies to be used to make various determinations 

throughout the rule. Section 400 contains administrative requirements, including provisions for 

determining when an application is complete, which air quality models must be used, public 

notice requirements, requirements for a final action, and other administrative provisions. Section 

500 contains specific requirements for power plant applications and Section 600 contains 

recordkeeping requirements for emergency engines, and portable and temporary equipment. 

Rule Evaluation

This Technical Support Document (TSD) provides EPA’s evaluation of the District’s revised 

Rule 502 (including revisions made by the District to address the deficiencies identified in our 

July 27, 2011 final action on PCAPCD’s NSR program submittal). We have reviewed Rule 502 

for compliance with the requirements of section 110 and part D of title I of the Act and EPA’s 

current implementing regulations at 40 CFR 51.160 through 51.165.

For a more comprehensive analysis of how Rule 502 satisfies the applicable requirements of the 

Act and 40 CFR 51.160 through 51.165, please also see the TSD supporting our July 27, 2011 

limited approval and limited disapproval of Rule 502 at 76 FR 44809. “Technical Support 

Document for EPA’s Notice of Proposed Rulemaking for the California State Implementation 

Plan, Placer County Air Pollution Control District, Rule 502 New Source Review,” May 6, 2011.

We also considered the following materials in our review: General Preamble for the 

Implementation of Title I of the Clean Air Act Amendments of 1990 (see 57 FR 13498, April 16, 

1992), EPA’s Emission Offset Interpretive Ruling (40 CFR part 51, Appendix S), and EPA’s 

policy document entitled, “Improving Air Quality with Economic Incentive Programs,” which 

was published in January 2001. EPA has condensed the approval criteria contained in these 

various materials in this TSD, which describes reasons for our proposed action on the Rule 502

SIP submittal. All references below to “Rule 502” are to the rule as amended October 13, 2011, 

unless otherwise noted.

Rule 502 –New Source Review

In our May 19, 2011 Notice of Proposed Rulemaking on Rule 502 (see 76 FR 28944), we 

identified the following deficiencies and suggested corrections:
3

1. Add definitions for the terms “begin actual construction,” “federally enforceable” and 

“necessary preconstruction approvals or permits.” 

2. Add a provision, pursuant to 40 CFR 51.165(a)(5)(ii), which requires new source review 

for a source or modification which becomes major due to a relaxation in a federallyenforceable limit. Such sources and modifications shall be subject to new source review 

“as though construction had not yet commenced.”

The District revised Rule 502 to address each of these deficiencies. The revisions made to Rule

502, including those which address the deficiencies identified in EPA’s previous rulemaking, are 

discussed below.

Item 1: Definitions have been added for each of the following terms: Begin Actual 

Construction, Class I Area, Commence, Federally Enforceable and Necessary 

Preconstruction Approvals or Permits. These new definitions are either identical or 

equivalent to EPA’s definitions in 40 CFR 51.165(a)(1) and therefore correct the identified 

deficiencies. 

Item 2: New language consistent with the requirements of 40 CFR 51.165(a)(5)(ii) has been 

added to Section 102. This new language corrects the identified deficiency.

Other Revisions:

A. Within the definition of the term “significant” the defined emission rate for nitrogen 

oxides and VOC has been revised to 25 tpy to reflect the District’s status as a severe 

ozone non-attainment area. Twenty-five tpy is the appropriate threshold for this 

classification. 

B. The requirement in Section 304.3 for sources with potential visibility impacts has been 

revised to specify when a visibility analysis is required, based on emission rates and 

location of the facility.

C. In several places throughout the rule, text has been revised to clarify that “federal” 

enforceability of certain provisions is required (e.g., Sections 220, 227). These provisions 

are at least as stringent as the corresponding EPA definitions in 40 CFR 51.165 (e.g., the 

definition of “federally enforceable” in section 51.165(a)(1)(xiv)).

New Deficiencies:

A. The definition of “NSR Regulated Pollutant” does not specify that gaseous emissions 

which condense to form either PM10 or PM2.5 must be counted as PM10 or PM2.5, 

respectively. This revision to the definition of NSR Regulated Pollutant was made as part 

of our Phase II rulemaking for Implementation of the New Source Review (NSR) 

Program for Particulate Matter Less Than 2.5 Micrometers (PM2.5). See 73 FR 28321. 

This omission creates a deficiency which must be corrected by providing this clarification 
4

regarding the treatment of condensable gaseous emissions within the definition NSR 

Regulated Pollutant or the definitions of PM10 and PM2.5.

B. Since the District revised Rule 502 in October 2011, EPA has revised its policy regarding 

PM2.5 interpollutant offset ratios. Under EPA’s “Revised Policy to Address 

Reconsideration of Interpollutant Trading Provisions for Fine Particles (PM2.5),” dated 

July 21, 2011, any ratio involving PM2.5 precursors must be submitted to EPA for 

approval for use in a district’s interpollutant offset program for PM2.5 nonattainment 

areas. The submittal must be accompanied by a technical demonstration that shows the 

net air quality benefits of such ratio for the relevant PM2.5 nonattainment area. Because 

such ratios are not allowed in the absence of such a demonstration, and PCAPCD has not 

provided such a demonstration, Placer must either remove these provisions from Rule 

502 (section 303.6.4) or provide a submittal making the necessary demonstration. The 

inclusion of interpollutant offset ratios for PM2.5 without the necessary demonstration is a 

program deficiency. 

Section 110(l) of the Act

Section 110(l) states: “Each revision to an implementation plan submitted by a State under this 

chapter shall be adopted by such State after reasonable notice and public hearing. The 

Administrator shall not approve a revision of a plan if the revision would interfere with any 

applicable requirement concerning attainment and reasonable further progress (as defined in 

section 7501 of this title), or any other applicable requirement of this chapter.”

With respect to the procedural requirements of CAA section 110(l), based on our review of the 

public process documentation included in PCAPCD’s November 18, 2011 rule submittal, we 

find that the State 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 substantive requirements of section 110(l), our approval of revised Rule 502

(to replace current SIP Rule 502) would strengthen the SIP-approved nonattainment NSR and 

minor NSR programs in Placer County compared to the existing SIP program as approved July 

27, 2011. As discussed above, the District has added several required definitions to Rule 502 and 

corrected a provision that was inconsistent with the applicable NSR regulations in 40 CFR 

51.165. The rule revisions strengthen the nonattainment NSR program in Placer County by 

clarifying its applicability and compliance provisions and addressing NSR requirements that the 

current SIP program fails to adequately address. None of the revisions to Rule 502 relax any 

control requirement or related compliance provision. 

In addition, we are unaware of any reliance by PCAPCD on the continuation of any aspect of the 

permit-related rules in Placer County for the purpose of continued attainment or maintenance of 

the NAAQS. Given all these considerations, we propose to conclude that our approval of Rule 

502 into the California SIP would not interfere with any applicable requirement concerning 

attainment and reasonable further progress (RFP) or any other applicable requirement of the Act.
5

Section 193 of the Act

Section 193 of the Act, which was added by the Clean Air Act Amendments of 1990, includes a 

savings clause which provides, in pertinent 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, 

1990, in any manner unless the modification insures equivalent or greater emission reductions of 

such air pollutant.” 

EPA does not believe that NSR programs are control requirements for the purposes of section 

193. See 70 FR 39413, at 39417 (July 8, 2005). However, we recognize that, on December 22, 

2006, the D.C. Circuit issued a decision on South Coast Air Quality Management District v. 

EPA, No. 14-1200, that may lead EPA to modify its interpretation of “control requirement” for 

the purposes of CAA section 193. Nonetheless, we evaluated Rule 502 against the existing pre1990 SIP requirements of Rule 508 (which Rule 502 was to replace) in our May 2011 analysis

and determined we could approve submitted Rule 502 under section 193 of the Act. See the 

TSD supporting our July 27, 2011 limited approval and limited disapproval of Rule 502 at 76 FR 

44809. “Technical Support Document for EPA’s Notice of Proposed Rulemaking for the 

California State Implementation Plan, Placer County Air Pollution Control District, Rule 502 

New Source Review,” May 6, 2011. As discussed in the 110(l) analysis above, the current 

revisions to Rule 502 do not relax any requirements of the rule. Therefore our previous section 

193 evaluation is still valid and no further analysis is required as part of our current evaluation of 

Rule 502.

Recommendations

Pursuant to section 110(k)(3) of the Act, we recommend a limited approval / limited disapproval 

of the submitted NSR rule. We recommend limited approval based on our determination that the 

rule complies with applicable statutory and regulatory provisions requiring regulation of 

stationary sources in general and requiring permit programs for major stationary sources in 

particular, including section 110(a)(2)(C) and part D of title I of the Act. In support of this 

recommendation, we have concluded that our approval of Rule 502 complies with section 110(l)

and 193 of the Act because the new rule does not relax control technology and offset 

requirements and therefore would not interfere with the strategy for attainment of the Ozone or 

PM2.5 NAAQS in PCAPCD or the continued attainment of the other NAAQS in PCAPCD. We 

recommend limited disapproval to correct the deficiencies listed below. If we finalize this action 

as proposed, our action would be codified through revisions to 40 CFR 52.220 (identification of 

plan).

Deficiencies as listed in this TSD under subsection entitled “New Deficiencies.”

1. Revise the definition of “NSR Regulated Pollutant” or the definitions of “PM10” and 

“PM2.5” to specify that gaseous emissions which condense to form either PM10 or PM2.5

must be counted as PM10 or PM2.5, respectively. 
6

2. Delete section 303.6.4 or submit a technical demonstration that shows the net air quality 

benefits of such ratio for the relevant PM2.5 nonattainment area. 

Attachments

1. Submitted PCAPCD Rule 502, New Source Review, amended October 13, 2011.

2. PCAPCD Staff Report for Proposed Amendment of Rule 502, New Source Review; 

undated.

3. “Technical Support Document for EPA’s Notice of Proposed Rulemaking for the 

California State Implementation Plan, Placer County Air Pollution Control District, Rule 

502 New Source Review,” May 6, 2011.