SACRAMENTO METROPOLITAN 

AIR QUALITY MANAGEMENT DISTRICT

STAFF REPORT 

SUMMARY OF THE PROPOSAL TO 

Rule 203 – PREVENTION OF SIGNIFICANT DETERIORATION 

AND REQUIRED FINDINGS

December 22, 2010 

And Appendices 

Prepared by: Marc Cooley 

Associate Air Quality Engineer

Reviewed by: Kevin J. Williams, Ph.D. 

Program Coordinator 

Aleta Kennard 

Program Supervisor

Approved by: Brigette Tollstrup 

Division Manager
Staff Report 

Rule 203, PREVENTION OF SIGNIFICANT DETERIORATION 

January 13, 2011 

Page 2 

Overview 

The District currently meets the federal health-based air quality standards for NO2, lead (Pb), SO2

and CO, and is referred to as an attainment or unclassified area for those pollutants. Sacramento 

County is also expected to be designated as an attainment area for federal PM10 standards. The 

federal Clean Air Act requires districts to adopt a program called Prevention of Significant 

Deterioration (PSD) to control air pollution from major large sources. 

Rule 203 was adopted on February 26, 1991. The District submitted Rule 203 as adopted 

February 26, 1991 to the EPA for approval into the SIP. EPA has not taken action on the 

submitted 1991 version of Rule 203. Rule 203, Prevention of Significant Deterioration, adopts the 

federal requirements of 40 CFR Part 52.21, Chapter 1 by reference. 

In June, 2010, EPA promulgated the so-called Tailoring Rule1 which defined the PSD 

requirements for greenhouse gases (GHG) which became subject to regulation when EPA 

adopted GHG requirements for motor vehicles in May, 2010. GHG are subject to PSD 

requirements starting January 2, 2011 with additional requirements beginning July 1, 2011. 

U.S. EPA Action to Ensure Authority to Issue Permits under the Prevention of Significant 

Deterioration Program to Sources of Greenhouse Gas Emissions: Finding of Substantial 

Inadequacy and SIP Call2: In December 2010, the EPA Administrator signed a finding that the 

EPA-approved State Implementation Plans (SIP) of 13 states are substantially inadequate to 

meet CAA requirements because they do not apply Prevention of Significant Deterioration 

requirements to GHG-emitting sources. Since EPA never approved the 1991 PSD rule, their 

determination was based on the last SIP approved PSD rule, adopted in 1984. The District is the 

only air district in California with the inadequacy. The Administrator issued a SIP call setting a 

deadline of January 31, 2011 for the District to submit a corrective SIP revision to assure the PSD 

program will apply to GHG-emitting sources. If the District is unable to submit a SIP revision 

before the January deadline, EPA intends to immediately issue a finding of failure to submit a 

required SIP submission under CAA section 110(c)(1)(A) and will promulgate a Federal 

Implementation Plan (FIP). 

In addition to the changes needed to meet Clean Air Act (CAA) requirements for PSD regulated 

pollutants, including greenhouse gases (GHG), amendments to Rule 203 must conform to the 

requirements of SB288, the Protect California Air Act of 2003. This California law prevents the 

District from adopting PSD requirements less stringent than the “new source review rules 

(including prevention of significant deterioration) or regulations that existed on December 30, 

20023

” and specifies that the rule for comparison as: 

“those new source review rules and regulations for both nonattainment and prevention of 

significant deterioration for new, modified, repaired, or replaced sources that have been 

adopted by the district governing board on or prior to December 30, 2002, that have been 

 

1

 “Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule, Final Rule”, Federal 

Register 75 (June 3, 2010) p. 31514 

2

 “Action to Ensure Authority to Issue Permits under the Prevention of Significant Deterioration Program to 

Sources of Greenhouse Gas Emissions: Finding of Substantial Inadequacy and SIP Call, Final Rule”, 

Federal Register 75 (December 13, 2010) p. 77698 

3

 California Health and Safety Code § 42504(a) 
Staff Report 

Rule 203, PREVENTION OF SIGNIFICANT DETERIORATION 

January 13, 2011 

Page 3 

submitted to the EPA by the state board for inclusion into the SIP and are pending 

approval or have been approved by the EPA4.” 

Therefore, the proposed amendments to Rule 203 cannot be less stringent than the 1991 version 

of Rule 203. 

Summary of the effect of the proposal 

The proposed amendments will do several things: 

• Update the adoption by reference to incorporate EPA’s most recent PSD rule, to the 

extent permitted by state law, 

• Limit certain provisions in the 1991 rule that improperly established that the District could 

act as the EPA Administrator, had that rule been approved by EPA, 

• Incorporate the new federal GHG requirements, and 

• Replace the outdated SIP approved PSD rule, adopted in 1984. 

COST IMPACTS 

Section 40703 of the California Health and Safety Code requires that the District consider and 

make public its findings relating to the cost effectiveness of implementing an emissions control 

measure. 

Impact on Businesses in Sacramento: Proposed amendments to Rule 203 are required to 

meet federal Clean Air Act EPA PSD rule requirements, and to respond to EPA’s SIP call. 

Starting January 2, 2011, PSD GHG requirements are applicable to major sources and major 

modifications that are subject to PSD for another regulated pollutant and increase GHG 

emissions above specified thresholds. Starting July 1, 2011, sources can trigger PSD 

requirements based solely on GHG emissions. Existing major sources are not subject to PSD 

permitting unless making a major modification. 

The cost impacts from this rule change depend on the following factors: 

• Whether a new major source or a significant modification(s) at an existing major source is 

proposed. 

• Whether the source plans include controls or other strategies that are considered the best 

available control technologies (BACT) for GHGs. 

• The actual cost of BACT controls or strategies. The definition of BACT includes 

consideration of the cost of the controls. In other words, controls that are overly costly 

would not be required to meet BACT requirements. 

BACT is determined based on a case-by-case analysis of the specific project proposal. Because 

the costs are based on the specific details of future project proposals, we cannot project the 

potential costs. EPA recently published a GHG guidance document5

 with information on potential 

 

4

 California Health and Safety Code § 42505 

5

 U.S. EPA. PSD and Title V Permitting Guidance For Greenhouse Gases. November 2010 
Staff Report 

Rule 203, PREVENTION OF SIGNIFICANT DETERIORATION 

January 13, 2011 

Page 4 

GHG BACT however the guidance does not provide any final BACT determinations. There is 

uncertainty concerning the costs of GHG BACT due to limited data and guidance. 

There is no change in costs for PSD requirements for the other regulated pollutants because they 

were already required by existing District rules, and state and federal laws and regulations. 

Cost to District: Historically, there have been very few sources that trigger PSD requirements. 

At a December 15, 2010 meeting with potentially impacted sources (major sources and those 

with high GHG emissions), staff asked whether any source anticipated making modifications that 

might trigger a PSD review. No source indicated any plans for such a change. Therefore, at the 

current time, staff does not anticipate a need for additional staff resources due to the proposed 

amendments. 

EMISSIONS IMPACT 

The proposed revisions require BACT for GHG new major sources and significant modifications 

at major sources with emissions over the GHG applicability thresholds. However, as discussed in 

the Cost Impacts - Impacts on Business above, the actual impacts, and associated emissions 

reductions from any additional controls or strategies required to meet BACT requirements, 

depend on the factors noted above and, therefore, staff cannot estimate the quantity of emission 

reduction benefits anticipated from the proposed rule amendments. 

There is no emission reduction benefit associated with other regulated pollutants, because BACT 

is already required under existing Rule 203, and other District rules, and state and federal laws. 

The amendments meet existing federal requirements and make more enforceable the 

requirements of prevention of significant deterioration minimize any new emissions into the 

attainment area. 

SOCIOECONOMIC IMPACT ANALYSIS 

CHSC Section 40728.5 requires a district to perform an assessment of the socioeconomic 

impacts before adopting, amending, or repealing a rule that will significantly affect air quality or 

emission limitations. The District Board is required to actively consider the socioeconomic 

impacts of the proposal and make a good faith effort to minimize adverse socioeconomic impacts. 

CHSC Section 40728.5 requires discussion of: 

1. The type of industry or business, including small business, affected by the proposed rule or 

rule amendments. 

2. The impact of the proposed rule or rule amendments on employment and the economy of the 

region. 

3. The range of probable costs, including costs to industry or business, including small business. 

4. The availability and cost-effectiveness of alternatives to the proposed rule or rule 

amendments. 

5. The emission reduction potential of the rule or regulation. 

6. The necessity of adopting, amending, or repealing the rule or regulation to attain state and 

federal ambient air standards. 
Staff Report 

Rule 203, PREVENTION OF SIGNIFICANT DETERIORATION 

January 13, 2011 

Page 5 

Type of industry or business, including small business, affected by the proposed rule: Rule 203 

applies to any stationary source that installs or modifies emissions units that exceed specified 

trigger levels for major source, as listed in 40 CFR Part 52.21(b)(1)(i), and major modification, as 

defined in 40 CFR Part 52.21(b)(2)(i) and the levels listed in 40 CFR Part 52.21(b)(23)(i). In 

general this PSD rule applies to sources in the 21 source categories, as listed in 40 CFR Part 

52.21(b)(1)(i)( a ), that emits more than 100 tpy or any source that emits more than 250 tpy of any 

regulated NSR pollutant (as defined in 40 CFR 52.21(b)(50)). The sources subject to the 

proposed rule could include chemical production plants, food processors, manufacturing plants, 

large boilers used at hospitals or universities, power plants, and waste management and 

remediation such as landfills. 

Impact on employment and economy in the District of the proposed rule: The addition of BACT 

for GHG may require additional controls, however as discussed in the cost impact sections 

above, the specific costs, and consequent impact on employment or the economy cannot be 

estimated at this time. Given the historic infrequent triggering of PSD, it is unlikely to be 

significant at this time. 

Range of probable costs, including costs to industry or business, including small business of the 

proposed rule: As discussed above, the amendments to Rule 203 do not impose additional costs 

any existing permitted stationary source. New or modified major stationary sources that trigger a 

PSD permit review for GHG emissions may be required to install BACT for GHG. The cost to 

install may vary depending on the BACT cost effectiveness determination for the type of 

equipment installed. 

Availability and cost effectiveness of alternatives to the proposed rule: Staff is amending the rule 

in order to address EPA requirements for the District to submit a SIP approvable rule. The only 

alternative is to not amend Rule 203 and choose not to comply with federal regulations and the 

Clean Air Act requirements. This will result in EPA imposing a Federal Implementation Plan (FIP) 

rule imposing similar GHG BACT requirements with identical costs. 

Emission reduction potential of the proposed amendments: Staff cannot estimate additional 

emissions reductions because staff cannot predict how many sources will be required to comply 

or the specific control strategy requirements. Based on past permitting actions, PSD has been 

triggered infrequently and the current major sources have not identified any anticipated major 

modifications. Since the proposed amendments may require BACT for GHG at new major 

sources and significant modifications for GHG-emitting sources, the amendments may result in 

an overall benefit to air quality in the District. 

Necessity of adopting the amendments: Staff proposed amendments in order to comply with 

federal regulations and Clean Air Act requirements.

FINDINGS 

The California Health and Safety Code (HSC), Division 26, Air Resources, requires local districts 

to comply with a rule adoption protocol as set forth in Section 40727 of the Code. This section 

has been revised through legislative mandate to contain six findings that the District must make 

when developing, amending, or repealing a rule. These findings, effective January 1, 1992, and 

their definitions are listed in the table below.
Staff Report 

Rule 203, PREVENTION OF SIGNIFICANT DETERIORATION 

January 13, 2011 

Page 6 

Rule 203 – Required Findings 

Finding Finding Determination

Authority: The District must find that a 

provision of law or of a state or federal 

regulation permits or requires the District to 

adopt, amend, or repeal the rule. 

The District is authorized to adopt and amend Rule 

203 by California Health and Safety Code (HSC) 

Sections 40001, 40702, 41010 and 42300. 

[HSC Section 40727(b)(2)]. 

Necessity: The District must find that the 

rulemaking demonstrates a need exists for the 

rule, or for its amendment or repeal. 

It is necessary to adopt the proposed amendments 

to Rule 203 to comply with the Federal Clean Air 

Act (42 USC 7410(a)(2)(C), 7410(l), 7471, 7475, 

7479, and 7515), and 40 Code of Federal 

Regulations Part 52.21. 

[HSC Section 40727(b)(1)]. 

Clarity: The District must find that the rule is 

written or displayed so that its meaning can be 

easily understood by the persons directly 

affected by it. 

Staff has reviewed the proposed rule and 

determined that it can be understood by the 

affected parties. In addition, the record contains no 

evidence that people directly affected by the rule 

cannot understand the rule. 

HSC Section 40727(b)(3)]. 

Consistency: The rule is in harmony with, and 

not in conflict with or contradictory to, existing 

statutes, court decisions, or state or federal 

regulations. 

The proposed rule does not conflict with, and is not 

contradictory to, existing statutes, court decisions, 

or state or federal regulations. 

[HSC Section 40727(b)(4)]. 

Non-Duplication: The District must find that 

either: 1) The rule does not impose the same 

requirements as an existing state or federal 

regulation; or (2) that the duplicative 

requirements are necessary or proper to 

execute the powers and duties granted to, and 

imposed upon the District. 

The proposed rule duplicates state or federal 

regulations for permitting programs. The 

duplicative requirements are necessary in order to 

execute the powers and duties imposed upon the 

District. 

[HSC Section 40727(b)(5)]. 

Reference: The District must refer to any 

statute, court decision, or other provision of law 

that the District implements, interprets, or 

makes specific by adopting, amending or 

repealing the rule. 

In adopting the proposed rule, the District is 

implementing the requirements of HSC Sections 

41010, and Sections of the Federal Clean Air Act 

(42 USC 7410(a)(2)(C), 7471, and 7475) 

[HSC Section 40727(b)(6)] 

Additional Informational Requirements: In 

complying with HSC Section 40727.2, the 

District must identify all federal requirements 

and District rules that apply to the same 

equipment or source type as the proposed rule 

or amendments. 

A comparison with federal requirements is located 

below. 

[HSC Section 40727.2]. 

 
Staff Report 

Rule 203, PREVENTION OF SIGNIFICANT DETERIORATION 

January 13, 2011 

Page 7 

California HSC Section 40727.2 Matrix 

Proposed Rule 203 – Prevention of Significant Deterioration

Elements of 

Comparison 

Specific 

Provisions 

Proposed Rule 203 40 CFR Part 52, 

Subpart I 

Exemptions Same as federal requirements 

except pre-1978 sources (no longer 

applicable) 

Increment consumption; 

Nonattainment pollutants; 

Nonprofit health or 

nonprofit educational; 

Pre-1978 sources; PSD 

monitoring; Significant 

Impact Levels (SIL); 

Temporary sources, air 

quality monitoring 

Averaging Provisions Not Applicable Not Applicable 

Units Same as federal requirements Tons/year, CO2e, μg/m3

Emissions Limits Emissions 

Reduction 

Same as federal requirements Ambient air increments; 

BACT; 

Compliance 

alternatives 

Same as federal requirements Air Quality Modeling 

Permit Conditions Same as federal requirements Federally enforceable 

permit conditions 

Operating 

Parameters 

Same as federal requirements Stack heights; 

Monitor emissions; 

Recordkeeping for hours 

of operations, throughput, 

and emissions. 

Work Practice 

Requirements 

Same as federal requirements Monitor emissions; 

Recordkeeping for hours 

of operations, throughput, 

and emissions. 

Monitoring/Records Recordkeeping Same as federal requirements Air Quality Analysis 

(source impact analysis, 

source information, 

visibility, soil and 

vegetation impact 

analysis), . 

Frequency Same as federal requirements Pre-application analysis 

Monitoring/Testing Test Methods Same as federal requirements Pre- and postconstruction monitoring 

Frequency Same as federal requirements Pre-construction 

monitoring for a period of 

at least one year 

preceding application 

(may be allowed to be 

period as short as 4 

months); Postconstruction monitoring 

as necessary 

 
Staff Report 

Rule 203, PREVENTION OF SIGNIFICANT DETERIORATION 

January 13, 2011 

Page 8 

APPENDIX A 

LIST OF CHANGES TO RULES 

Rule 203 – Prevention of Significant Operations 

NEW 

SECTION 

NUMBER 

EXISTING 

SECTION 

NUMBER 

PROPOSED CHANGES 

N/A N/A Removed adopt by reference language. The proposed 

amendments to Rule 203 incorporate by reference the latest version 

of 40 CFR 52.21 (see Section 103). Several sections are excluded 

from the incorporation by reference language to satisfy EPA and 

SB288 requirements. Those sections are related to the NSR 

reforms EPA promulgated on December 31, 2002. 

101 N/A Added “purpose” section to clarify rule provides for preconstruction 

review requirements for new and modified major stationary air 

pollution sources that emit attainment pollutants. Rule 203 is 

intended to incorporate federal prevention of significant deterioration 

requirements into the District’s rules and regulations. 

102 N/A Added “applicability” section to clarify rule applies to sources subject 

to any requirement under federal PSD regulations (40 CFR 52.21). 

Also clarified that the most stringent requirement applies in cases of 

conflict or duplication. The applicability procedures contained in 40 

CFR 52.21(a)(2) are revised as set forth by the procedures 

contained in Sections 102.1-102.3. 

102.1-

102.3 

N/A Added applicability procedures consistent with SB288 requirements 

of not adopting federal NSR reform. These applicability procedures 

are consistent with the sections of 40 CFR 52.21(i)(1-3) that were in 

effect on December 30, 2002. 

103 N/A Added “Incorporation by Reference” section incorporating all the 

provisions of 40 CFR 52.21, in effect at the date of adoption, as part 

of the Rules and Regulations of the District. 

104 N/A Excluded sections of 40 CFR 52.21 for all regulated NSR pollutants 

including GHG, consistent with the CAPCOA model rule. These 

excluded sections contain reserved sections, public participation 

(replaced with explicit language in rule), sections struck down by 

court decisions, and other sections not applicable when adopting by 

reference (environmental impact statements, disputed permits, 

delegation of authority, and permit recision). 

105 N0/A Excluded two sections of 40 CFR 52.21 only for the purposes of 

GHG. Sections (k), source impact analysis, and (m), air quality 

analysis, are excluded due to the absence of a National Ambient Air 

Quality Standard (NAAQS) for GHG. 

201 N/A Added “actual emissions” definition to revise the definition as set 

forth in Sections 201.1-201.4 whenever reference is made to the 

term “actual emissions” or any reference to 40 CFR 52.21(b)(21). 

201.1-

201.4 

N/A Added “actual emissions” procedures consistent with SB288 

requirements of not adopting federal NSR reform. These 
Staff Report 

Rule 203, PREVENTION OF SIGNIFICANT DETERIORATION 

January 13, 2011 

Page 9 

NEW 

SECTION 

NUMBER 

EXISTING 

SECTION 

NUMBER 

PROPOSED CHANGES 

calculation procedures are consistent with 40 CFR 52.21(b)(21) in 

effect July 1, 1990. 

202 N/A Added “administrator” definition consistent with CAPCOA model 

rule. Sections where the Administrator of EPA is appropriate are 

noted and all other uses of the term “administrator” shall mean “Air 

Pollution Control Officer.” 

203 N/A Added “allowable emissions” definition as set forth in Sections 

203.1-203.2, consistent with the CAPCOA model rule, whenever 

reference is made to the term “allowable emissions” or any 

reference to 40 CFR 52.21(b)(16). 

204 N/A Added “baseline actual emissions” definition as set forth in Sections 

204.1-204.4 whenever reference is made to the term “baseline 

actual emissions” or any reference to 40 CFR 52.21(b)(48). 

204.1-

204.4 

N/A Added “baseline actual emissions” procedures consistent with 

SB288 requirements of not adopting federal NSR reform. These 

calculation procedures are consistent with 40 CFR 52.21(b)(21) in 

effect July 1, 1990. 

205 N/A Added “major modification” definition as set forth in Sections 205.1-

205.3 whenever reference is made to the term “major modification” 

or any reference to 40 CFR 52.21(b)(2). 

205.1-

205.3 

N/A Added “major modification” procedures consistent with SB288 

requirements of not adopting federal NSR reform. These 

calculation procedures are consistent with 40 CFR 52.21(b)(2) in 

effect July 1, 1990. 

206 N/A Added “net emissions increase” definition as set forth in Sections 

206.1-206.8 whenever reference is made to the term “net emissions 

increase” or any reference to 40 CFR 52.21(b)(3). 

206.1-

206.8 

N/A Added “net emissions increase” procedures consistent with SB288 

requirements of not adopting federal NSR reform. These 

calculation procedures are consistent with 40 CFR 52.21(b)(3) in 

effect July 1, 2002. 

207 N/A Added “paragraph (q)” definition consistent with the CAPCOA model 

rule. This definition is included due to paragraph (q) being excluded 

from the incorporation by reference in Section 103. Specific 

procedures are provided related to sources impacting Federal Class 

I areas [40 CFR 52.21(p)(1)]. 

208 N/A Added “potential to emit” definition to consistent with the CAPCOA 

model rule. 

301 N/A Added “requirements” heading consistent with District rules and 

regulations. 

301.1 N/A Added section to require a PSD permit pursuant to Rule 203 is 

required before construction begins, consistent with the Clean Air 

Act. 

301.2 N/A Added section to require compliance with Rule 203 before issuing a 

PSD permit consistent with the Clean Air Act. 
Staff Report 

Rule 203, PREVENTION OF SIGNIFICANT DETERIORATION 

January 13, 2011 

Page 10 

NEW 

SECTION 

NUMBER 

EXISTING 

SECTION 

NUMBER 

PROPOSED CHANGES 

301.3 N/A Added section consistent with CAPCOA model rule clarifying fees 

are required for obtaining a PSD permit. 

401 N/A Added “public participation requirements” consistent with the 

CAPCOA model rule, 40 CFR 52.21, and District requirements. 

Public participation for PSD permits includes additional notification 

compared to other District rules, such that notification shall be 

provided to: EPA, any state or local air districts, cities and counties, 

any regional land use planning agencies, any state, federal land 

manager, or Indian governing body whose lands may be affected by 

emissions from the source or modification. 
Appendix B 

Presentation to Sources 

December 16, 2010 
1

Rule 203 – Prevention of Significant 

Deterioration and 

Rule 207 – Title V Federal Operating 

Permit Program 

Greenhouse Gas (GHG) Status Meeting

Public Meeting

December 16, 2010

Marc Cooley

Discussion Overview

• Prevention of Significant Deterioration (PSD)

– Minimize air quality impacts in attainment areas

– New and expanding emission sources that are 

significant use Best Available Control Technology

• Background on Greenhouse Gases (GHG)

• PSD GHG Requirements

• GHG Applicability

• Title V Permitting

• GHG Applicability Charts

• Upcoming Rule Changes & Next Steps
2

Rule 203 – Prevention of 

Significant Deterioration(PSD)

• Affects “major sources” that require a permit for new 

or modified equipment

– 100 tpy of any pollutant subject to regulation for the 21 source 

categories (fugitive emissions included in determination)

– 250 tpy of any pollutant subject to regulation for all other sources 

(fugitive emissions not used in determination)

• Reduce impact of new or modified sources on air 

quality problems by requiring:

– Best Available Control Technology (BACT)

– Air quality analysis

– Additional impacts analysis

– Public involvement / noticing

Background on Greenhouse Gases (GHG)

• GHG: Six well-mixed GHG often calculated as CO2e

– CO2, CH4, N2O, HFCs, PFCs, and SF6

• 2007 – Supreme Court found GHGs covered by Clean Air Act

• 2009 - EPA found GHG air pollution threatens public health

• May 2010 – EPA adopted vehicle emissions standards

– Requires GHG PSD and Title V reqmts. beginning Jan. 2, 2011

• June 2010 - EPA adopts PSD and Title V GHG Tailoring Rule

– Limits PSD/Title V applicability to largest emitters

• Dec. 1, 2010 - EPA signed rule requiring revisions to our 

approved PSD rule (& rules in 12 other states)

– EPA also established a federal PSD rule that will be in effect if 

EPA doesn’t receive our revised rule by 1/31/11
3

PSD GHG Requirements

• GHG Tailoring Rule

• PSD Rule changes are needed because:

– EPA’s rule (referred to as SIP Call) requires revisions to 

our approved PSD rule to include GHG by Jan 31, 2011

– EPA federal PSD rule takes effect if our revised rule is not 

approved by the deadline noted above

– ensures that new major sources or major modifications will be able 

to obtain PSD permits

– EPA Region 9 is the permitting authority for the federal PSD rule

– Replace 1984 Approved PSD Rule combined with NSR

– Proposed amendment to Rule 203 expected shortly and 

Rule 207 in early 2011

GHG Applicability

• Step 1 - Starting January 2, 2011

– PSD permit required if: 

• Already subject for another regulated NSR pollutant

• Source increases GHG emissions ≥75,000 tpy CO2e 

and ≥ 0 tpy GHG (mass basis)

– Title V permit required if:

• Sources address GHGs only when applying for a new Title V

permit, or renewing or revising existing Title V permits

• Step 2 - Starting July 1, 2011

– PSD permit required if source has: 

• PTE ≥ 100,000 tpy CO2e and 100/250 tpy GHG (mass basis)

• Increase ≥ 75,000 tpy CO2e and ≥ 0 tpy GHG

– New Title V permit must be obtained if:

• PTE ≥ 100,000 tpy CO2e and 100 tpy GHG (based solely on 

GHGs)
4

GHG Applicability

• Step 3 – EPA must 

– Set requirements no later than July 1, 2012 

– Give 1 year notice before requirements take effect

• Step 4 – Before April 2016 EPA cannot set 

requirements for:

– New sources emitting < 50,000 tpy CO2e and 

– Modification increasing < 50,000 tpy CO2e

continued

Deadline PSD Action Required

(Apply Best Available Control Technology (BACT) for GHG)

January 2, 2011 

and after

Step 1 - Sources required to obtain PSD permits for another 

regulated pollutant must obtain a GHG PSD permit if sum of 6 GHG 

pollutant increased and collective GHG emissions increased 75,000 

tons per year (tpy) CO2e or more

July 1, 2011 Step 2 – If a source is not required to get a PSD permit for another 

regulated pollutant, but emits ≥ 100,000 CO2e, they must obtain a 

GHG PSD permit if it is: 

 new major source for GHG - must have both: a) sum of 6 GHG pollutants 

100/250 tpy or more and b) collective GHG emissions 100,000 TPY CO2e or 

more, or 

 modifications to existing major sources, sum of 6 GHG pollutants increased 

and collective GHG emissions increased 75,000 tpy CO2e or more

July 1, 2013 EPA may require PSD permitting at more sources, effective 

not later than 2013, in rules issued not later than July 1, 2012

April 30, 2016 No source that emits, or increases their emissions, less than 50,000 

tpy CO2e will be required to obtain permits before April 30, 2016
5

Rule 207 – Title V Permitting

• Proposed amendments to Rule 207 expected Spring 2011

• Existing Title V Sources:

– Not anticipating reopening of Title V permits to add GHG,

however GHG will be added to permits upon renewal

• New Title V sources (Step 2, July 2011): Sources are 

required to obtain Title V permit based solely GHG 

emissions if PTE ≥ 100,000 tpy CO2e

– Existing or new source emits or has PTE to emit GHG ≥ 100 

tpy on a mass basis and ≥ 100,00 tpy CO2e

– Rule 207, Section 301.9 requires sources that becomes subject 

to Rule 207 must complete a Title V permit application within 

12 months of the date of becoming subject to Rule

– New Title V sources must meet:

• SIP-approved rules as federally enforceable requirements 

• Reporting, compliance certification, non-GHGs requirements

(SIP-approved rules, MACT standards, PSD) & monitoring (if applicable)

Application

Deadline

Title V Action Required District 

Deadline for 

Title V Issuance

12 months 

after 

commencing 

operation

All sources that trigger a GHG PSD permit

(Step 1 or Step 2) – must submit Title V

application within 12 months after commencing

operation under their new/modified PSD permit

18 months

July 1, 2012 Sources that emit sum of 6 GHG pollutants

≥100 tpy and sum of 6 GHG pollutants ≥

100,000 tpy CO2e or more must obtain a Title V

permit if they do not already have one.

18 months

12 months 

prior to 

renewal

Existing Title V sources (for another regulated

pollutant) that do not modify must include information

about their GHG emissions in their Title V permit

renewal application (even those ≥ 100,000 tpy CO2e)

12 months

Note: This chart assumes the only “applicable requirement” for a Title V permit is PSD 

Title V permits may also be required if a new NSPS or other GHG applicable requirement is 

promulgated.

EPA may require add’l sources to have Title V permit in rulemaking expected 7/1/12.
6

Subject to 

PSD for 

another 

regulated 

NSR 

pollutant?

Not subject to PSD/Title V for 

GHGs under Step 1 of 

Tailoring Rule

Potential 

CO2e 

increase ≥

75,000 

tpy?

Must include GHG requirements 

(BACT) in PSD permit

Title V permit must 

include GHG 

requirements 

(BACT)

No

No

Yes

Yes

Step 1 – New Sources

Beginning January 2, 2011

Step 1 – New Sources

Modification 

subject to 

PSD for 

another 

regulated 

pollutant?

Not subject to PSD/Title V for 

GHGs under Step 1 of 

Tailoring Rule

Net GHG 

increase > 0 

(mass) & 

Sum CO2e 

increase ≥

75,000 tpy?

Must include GHG requirements 

(BACT) in PSD permit

Title V permit must 

include GHG 

requirements 

(BACT)

No

No

Yes

Yes

Step 1 – Existing Sources

Beginning January 2, 2011

Step 1 – Existing Sources

Net CO2e 

increase 

≥ 75,000 

tpy

No

Yes
7

GHG 

emissions 

≥ 100/250 

tpy

Not subject to PSD/Title V 

for GHGs under Tailoring 

Rule

Subject to 

PSD for 

another 

regulated 

NSR 

pollutant?

Check Step 1

Another 

regulated 

NSR 

pollutant

≥ 100/250 

tpy?

Must include GHG requirements 

(BACT) in PSD permit

Title V permit must 

include GHG 

requirements 

(BACT)

Step 1 & 2 - New Sources

Beginning 7/1/11

Step 1 & 2 - New Sources

Yes

Yes

Yes

Yes

No

No

No

No

CO2e 

emission 

≥ 100,000 

tpy

Sum GHG 

emissions 

> 0 tpy?

Not subject to PSD/Title V 

for GHGs under Tailoring 

Rule

Sum 

CO2e

increase 

≥ 75,000 

tpy?

Potential 

GHG 

emissions 

≥ 100,000 

tpy CO2e & 

100/250 tpy

Modification 

subject to 

PSD for 

another 

regulated 

pollutant?

Net CO2e 

≥ 75,000 

tpy

Must include GHG requirements 

(BACT) in PSD permit

Title V permit must 

include GHG 

requirements 

(BACT)

Step 1 & 2 –

Existing Sources

Beginning 7/1/11

Step 1 & 2 – Existing Sources

Yes

Yes

No

No

No

GHG 

emissions 

≥ 100,000 

tpy CO2e & 

100/250 tpy

No No

Yes

Not subject to PSD/Title V 

for GHGs under Tailoring 

Rule

No

Yes

Yes

Yes
8

Upcoming Rule Changes & Next Steps

• Public Hearing for Rule 203

– January 27, 2011 at 9:30 am

• Rule 207 – expected Spring 2011

• Direct comments/questions to:

Marc Cooley

SMAQMD

777 12th Street, 3rd Floor

Sacramento, CA 95816

email: mcooley@airquality.org

Phone: (916) 874-4846