November 10, 2015 Revision RULE 26.13: 1

VENTURA COUNTY AIR POLLUTION CONTROL DISTRICT

RULE 26.13 - NEW SOURCE REVIEW - PREVENTION OF SIGN IFICANT

DETERIORATION (PSD) (Adopted 6/28/2011, Revised 11/10/2015)

A. Purpose

The prevention of significant deterioration (PSD) p rogram is a construction permitting program for new major facilities and major modifica tions to existing major facilities that emit either criteria or greenhouse gas pollutants l ocated in areas classified for an air pollutant as either attainment or unclassifiable. Rules 10 through 32 contain application requirements and processing requirements for permit actions. The intent of this Rule is to incorporate by reference federal PSD rule requireme nts into these Rules and Regulations.

B. Applicability

The provisions of this rule Rule shall apply to any source and the owner or operator of any source subject to any requirement under Title 4 0 of the Code of Federal Regulations Section 52.21 (40 CFR) Part 52.21) as incorporated into this ruleRule.

C. Incorporation by Reference

Except as provided below, the provisions of 40 CFR Part 52.21, in effect September 1, 2015 August 2, 2010, are incorporated herein by ref erence and made part of these the District’s Rules and Regulations.

1. The following subsections of 40 CFR Part 52.21 a re excluded: (a)(1), (b)(55-58), (f), (g), (i)(1)(i-v, ix, x), (i)(6-8), (p)(6-8), ( q), (s), (t), (u), (v), (w), (x), (y), (z) and (cc).

2. The following definitions found in 40 CFR Part 5 2.21(b) are revised as follows:

a. In the definition of “potential to emit” contain ed in 40 CFR Part 52.21(b)(4), the phrase “is federally enforceable” shall read “is federally enforceable or enforceable as a practical matter.”

b. In the definition of “allowable emissions” conta ined in 40 CFR Part 52.21(b)(16):

1) The phrase “unless the source is subject to fede rally enforceable limits which restrict the operating rate, or hours of operation, or both” shall read, “unless the source is subject to enforceable limits which restrict the operating rate, or hours of oper ation, or both.”November 10, 2015 Revision RULE 26.13: 2 2) Paragraph (iii) shall read as follows: “The emis sions rate specified as an enforceable permit condition, including those with a future compliance date.”

32. The following terms found in 40 CFR Part 52.21( b) are revised as followsUnless otherwise defined below, the terms used in this Rul e are defined in 40 CFR 52.21:

a. The term “administrator” meansshall mean as foll ows:

1) “federalUSEPA administrator” as used in 40 CFR 5 2.21(b)(17), (b)(37)(i), (b)(43), (b)(48)(ii)(c), (b)(50)(i), (b )(51), (l)(2) and (p)(2); or

2) “Air Pollution Control Officer” (defined in Rule 2), as used elsewhere in this Rule, as defined in Rule 2.

b3. The phrase “paragraph (q) of this section” in 4 0 CFR 52.21(l)(2) and (p)(1) shall read as follows: “the public notice and comment pro visions of Rule 26.7, New

Source Review - Notification26.13 Section E”.

D. Requirements:

1. An owner or operator must obtain a prevention of significant deterioration (PSD) permit pursuant to this Rule before beginning actua l construction of a new major stationary source, a major modification, or a Plant wide Applicability Limitation (PAL) major modification, as defined in 40 CFR 52.2 1(b).

2. Not withstanding the provisions of any other Dis trict Rule or Regulation, the Air Pollution Control Officer shall require compliance with this rule Rule prior to issuing a federal Prevention of Significant Deterio ration permit as required by Clean Air Act (CAA) Section 165.

3. The applicant shall pay the applicable fees spec ified in Rule 42.

4. The Air Pollution Control Officer shall provide written notice of any permit application for a proposed major stationary source or major modification to the

USEPA administrator. Such notification shall inclu de a copy of all information relevant to the permit application and shall be giv en within 30 days of receipt and at least 60 days prior to any public hearing on the application for a permit to

construct.

5. The Air Pollution Control Officer shall determi ne whether an application is complete not later than 30 days after receipt of th e application or after such longer time as both the applicant and the Air Pollution Co ntrol Officer may agree. If the

Air Pollution Control Officer determines that the a pplication is not complete, the applicant shall be notified in writing of the decis ion specifying the informationNovember 10, 2015 Revision RULE 26.13: 3 that is required. Upon receipt of any re-submittal of the application, a new 30-day period to determine completeness shall begin. Upon determination that the application is complete, the Air Pollution Control Officer shall notify the applicant in writing. The date of receipt of the ap plication shall be the date on which the reviewing authority received all required information.

6. Greenhouse gas emissions shall not be subject to the requirements of subsections (k) or (m) of 40 CFR 52.21 in effect on September 1 , 2015.

7. Except as specified in Section D.7.a below, the PSD requirements of this Rule shall be incorporated into and made enforceable thr ough Authority to Construct permits and Permits to Operate according to the per mitting requirements of Regulation II (Rules 10 through 36) of the District ’s Rules and Regulations.

a. For power plants which will be licensed by the C alifornia Energy Commission, the PSD requirements of this Rule may, at the District’s discretion, be incorporated into and made enforceab le through Determinations of Compliance and Permits to Operate according to the Determination of Compliance provisions of Rule 26.9 New Source Review – Power Plants and the permitting requiremen ts of Regulation II of the District’s Rules and Regulations.

E. Public Participation:

Prior to issuing a federal PSD permit pursuant to t his Rule and within one year after receipt of a complete application, the Air Pollutio n Control Officer shall:

1. Make a preliminary determination whether constr uction should be approved with conditions or disapproved.

2. Make available in at least one location in each region in which the proposed source would be constructed a copy of all materials the applicant submitted, a copy of the preliminary determination, a copy of th e proposed permit and a copy or summary of other materials, if any, considered i n making the preliminary

determination.

3. Notify the public, by advertisement in a newspa per of general circulation in the District, of the application, the preliminary deter mination, the degree of increment consumption that is expected from the source or mod ification, the opportunity for comment at a public hearing and the opportunity for written public comment.

4. Send a copy of the notice of public comment to the applicant, USEPA Region 9, any persons requesting such notice and any other in terested parties such as: Any other State or local air pollution control agencies , the chief executives of the city and county where the source would be located; any c omprehensive regional landNovember 10, 2015 Revision RULE 26.13: 4 use planning agency, and any State, Federal Land Ma nager, or Indian Governing body whose lands may be affected by emissions from the source or modification.

5. Provide opportunity for a public hearing for per sons to appear and submit written or oral comments on the air quality impact of the s ource, alternatives to it, the control technology required, and other appropriate considerations, if in the Air Pollution Control Officer’s judgment such a hearing is warranted.

6. Consider all written comments that were submitt ed within 30 days after the notice of public comment is published and all comments rec eived at any public hearing(s) in making a final decision on the approv ability of the application and make all comments available, including the District ’s response to the comments, for public inspection in the same locations where t he District made available preconstruction information relating to the propose d source or modification.

7. Make a final determination whether construction should be approved with conditions or disapproved.

8. Notify the applicant in writing of the final de termination and make such notification available for public inspection at the same location where the District made available preconstruction information and publ ic comments relating to the source.1. Prior to issuing a federal PSD permit pur suant to this rule, the Air Pollution Control Officer shall comply with the pub lic notice requirements of Rule 26.7, New Source Review - Notification.