FEATHER RIVER AIR QUALITY MANAGEMENT DISTRICT

MEMORANDUM

08/01/2011

TO: FRAQMD BOARD OF DIRECTORS

FROM: David A Valler, Jr, APCO

SUBJECT: Adoption of Resolution #2011-06, District Rule 10.10 Prevention of 

Significant Deterioration

BACKGROUND

Prevention of Significant Deterioration (PSD) is a federal permitting program for new major 

stationary facilities and significant modifications to existing major facilities located in areas classified 

as attainment or in areas that are unclassifiable for any criteria air pollutant. As a District, we are 

more familiar with the Title V Federal Operating Permit Program that is for major sources of 

pollutants regardless of attainment status. Title V permits ultimately incorporate PSD permit 

conditions. The PSD permitting program is a pre-construction permit that is administered by the 

Environmental Protection Agency Region IX (EPA) for Yuba and Sutter counties. There are currently 

only two PSD permit for Sutter County, both held by Calpine Corporation.

With the recent addition of Greenhouse Gases (GHG) as a regulated pollutant under the Federal 

Clean Air Act, which makes these pollutants subject to federal permitting, EPA Region IX could 

possibly have a significant increase in PSD permit applications throughout the state. EPA staff could 

be overwhelmed with these new permit applications and the delay in processing them could be two 

years or more. Consequently, EPA is encouraging local air districts to take on PSD permitting 

responsibility for projects that occur within their jurisdiction. For an air district to take on PSD 

permitting, the district needs to adopt a PSD permitting rule that mirrors the federal requirements and 

have that rule ARB and EPA approved for incorporation into the State Implementation Plan (SIP).

The most straightforward way for an air district to take on PSD responsibility is to adopt a rule that 

incorporates the federal requirements by reference (IBR). CAPCOA has developed a model rule in 

conjunction with EPA and ARB staff, and the CAPCOA Engineering Manager’s Committee.

Feather River Air Quality Management District staff is proposing that the Board adopt this CAPCOA 

model rule.

PUBLIC PROCESS

Public outreach consisted of one public workshop publicized through a newspaper notice, posting of 

the notice on the District website, and mailing a notice to sources which currently have a Title V 

permit. As mentioned in the Staff Report, no public comments were received.
PROPOSAL

Staff has determined a necessity to adopt Regulation X, Rule 10.10 in order to prevent any delays in 

processing of PSD permits for new major stationary sources or major modifications to existing major 

stationary sources.

FISCAL IMPACT

Adoption of Rule 10.10 will have an additional fiscal impact on businesses that are proceeding with a 

new major source or a significant modification of an existing major source of an attainment pollutant. 

The District does not propose imposing a new fee structure to cover the costs of the permit, but to 

incorporate the PSD permit and review into the existing process for Authorities to Construct and 

Permits to Operate. Currently, EPA does not charge any fees for processing a PSD permit because 

EPA is funded with taxpayer dollars.

RECOMMENDATION

The District recommends the Board approve the attached resolution to adopt the proposed new Rule 

10.10 Prevention of Significant Deterioration and to direct the APCO to submit the rule for inclusion 

in the SIP.

ATTACHMENTS

A. Staff Report – Rule 10.10 Prevention of Significant Deterioration

B. Rule 10.10 Resolution, Resolution No. 2011-06
ATTACHMENT A

Staff Report – Rule 10.10
ATTACHMENT B

Rule 10.10 Proposed, Resolution No. 2011-06