Theodore D. Schade 

Air Pollution Control Officer 

@ __ .,. ___________ _ 

GREAT BASIN UNIFIED AIR POLLUTION CONTROL DISTRICT 

November 13, 2014 

Gerardo Rios 

Chief, Air Permits Office (Air-3) 

EPA Region 9 

75 Hawthorne Street 

San Francisco, CA 94105 

157 Short Street, Bishop, California 93514-3537 

760-872-8211 Fax: 760-872-6109 

RE: Clarifications for Rule 221- Prevention of Significant Deterioration (PSD) Permit Requirements 

Dear Mr. Rios: 

On February 6, 2013, the California Air Resources Board (CARB) submitted for the Environmental Protection 

Agency's (EPA) approval Great Basin Unified Air Pollution Control District (District) Rule 221- Prevention of 

Significant Deterioration (PSD) Permit Requirements for New Major Facilities or Major Modifications in 

Attainment or Unclassifiable Areas. This letter provides additional information and clarifications related to 

greenhouse gas permitting, transferring the PSD program from EPA to the District and ensuring that certain PSD 

program requirements are met. 

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") 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 11Step 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 221, Section C incorporates by 

reference EPA's PSD regulations at 40 CFR 52.21 as of July 1, 2012. In light of the Supreme Court's UARG 

decision, on November 13, 2014, I requested that ARB notify EPA that ARB and the District would like to 

withdraw from ARB's February 6, 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 221, 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. 
Existing PSD Permits 

As part of, and concurrent with, EPA's approval of the District's PSD program into the SIP, the District is 

requesting approval to exercise its authority to administer the PSD program with respect to those sources 

located in the District that have existing PSD permits issued pursuant by EPA. This would include authority to 

conduct general administration of these existing permits, authority to process and issue any and all subsequent 

PSD permit actions relating to such permits including, for example, modifications, amendments, or revisions of 

any nature, and authority to enforce such permits. 

Discussion of Section 110(a)(2)(E)(i) 

Pursuant to Section 110(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 221 provides the District with specific authority to issue PSD permits and otherwise implement and enforce 

the PSD program. 

As discussed in the District's February 6, 2013 SIP submittal, if a proposed facility is subject to PSD regulations, 

the incorporation of PSD permitting requirements with District permit requirements may require additional 

resources to oversee the ambient monitoring program for a pre-application air quality analysis, if it is needed. 

The District will apply for EPA Section 105 funds to help cover the additional cost of the PSD permitting program. 

For permit applicants, combining the PSD permitting process with the District permitting process will streamline 

the permitting process. Sources will not be required to get permits from both the District and the US EPA, which 

should reduce their costs associated with dealing with two agencies. 

Also, as discussed in the District's February 6, 2013 submittal, due to the lack of large industrial facilities in our 

District, there is only one facility that have been subject to PSD regulations in our District (a permit issued in 

1979 to facility that is not currently a major source), and staff is not aware of any planned facilities that may be 

subject to PSD regulations in the future. If a planned facility becomes subject to this regulation the District will 

incorporate the PSD permitting requirements into the District's existing permit procedures for new facilities and 

modifications. 

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

implement and enforce the PSD program for sources within the District, including for existing PSD permits. 

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Additional PSD Program Requirements 

Notice of Opportunity for Public Hearing 

40 CFR 51.166(iii) states: 

Notify the public, by advertisement in a newspaper of general circulation in each region in which the 

proposed source would be constructed, of the application, the preliminary determination, the degree of 

increment consumption that is expected from the source or modification, and of the opportunity for 

comment at a public hearing as well as written public comment. 

40 CFR Sl.166(q)(iii) requires that the public notification for a preliminary determination include notice of the 

opportunity for comment at a public hearing. While Section D.6.v of Rule 221 includes the requirement in 40 

CFR Sl.166(q)(2)(v) to provide an opportunity for a public hearing, Rule 221 does not specifically include the 

requirement to notify the public of the opportunity to comment at a public hearing. Section D.6.iii of Rule 221 

includes the requirements in 40 CFR Sl.166(q)(iii) related to public notifications except for a reference to the 

opportunity for comment at a public hearing. The District confirms that it interprets Section D.6 of Rule 221 as 

requiring the public notification to include reference to the opportunity to request a public hearing. The District 

will ensure that its public notifications mention the opportunity to request a public hearing, and will revise Rule 

221, for clarity, to specifically include this requirement the next time it is open for revisions. 

Please call Duane Ono at (760) 872-8211 if you have any questions regarding this matter. 

Air Pollution Control Officer 

cc: Carol Sutkus, CARS 

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