Agenda Date: June 20, 2013

Agenda Placement: Regular

Estimated Time: 10 min

Continued Item: No



# Board Agenda Item

TO: Air Pollution Control District Board

FROM: Dave Van Mullem , Air Pollution Control Officer

CONTACT: Douglas Grapple, 961

- 8883 (grappled@sbcapcd.org)

SUBJECT: Adoption of Proposed Amended Rule 810 t o Implement the United States

Environmental Protection Agency ’s Federal Prevention o f Significant Deterioration

Provisions

RECOMMENDATION:

That the Board:

A. Hold a public hearing to receive testimony on the proposed amended Rule 810

, Federal

Prevention of Significant Deterioration (PSD)

.

B. Approve the Resolution attached to this Board Letter. Approval of the R esolution will

result in the following actions:

1. CEQA Findings : Adopt the CEQA F indings (Attachment 1) pursuant to the California

Environmental Quality Act (CEQA) and the CEQA guidelines.

2. Rule Findings : Adopt the associated R ule F indings (Attachment 2) in support of the

proposed amended r ule pursuant to Health and Safety Code Section 40727 regarding

necessity, authority, clarity, consistency, nonduplication, and reference. The R ule

F indings also acknowledge public comments on the proposed amended rule and adopt

the responses to public com ments as findings of the Board (See Attachment 3).

3. Rule Adoption and Amendments : Adopt proposed amended Rule 810 (Attachment 4).2

EXECUTIVE SUMMARY:

On January 20, 2011, the District adopted Rule 810 as part of a suite of rules to implement the

U nited States Environmental Protection Agency’s (EPA’s) P revention of Significant Deterioration

(PSD) and Title V to address new greenhouse gas requirements under EPA’s “tailoring rule.” Rule

810 incorporates federal PSD requirements by reference, and was based on an EPA model rule.

EPA subsequently determined that slight changes to Rule 810 are necessary before EPA will

incorporate the rule into the State Implementation Plan

.

Rule 810 benefits the regulated community by i ncreasing greenhouse gas emissi on trigger levels for

PSD permits. Adoption of amended Rule 810, and inclusion into the SIP, will allow the District to

process any required federal PSD permit applications.

DISCUSSION:

Objectives :

To fully implement EPA Greenhouse Gas Tailoring Rule requirements

, the District needs to adop t

amended Rule 810 . Once adopted, the District will submit Rule 810 f or inclusion into :

1. T he State Implementation Plan (SIP), and

2

. The federal Outer Continental Shelf Air Regul ations.

Background :

Historically, t he District rules applied to “criteria” air pollutants, their precursors, hazardous air

pollutants , and toxic air contaminants . “Criteria” pollutants include ozone, particulate matter,

carbon monoxide, sulfur dioxide, nitrogen oxides, and lead, but not greenhouse gases (GHGs)

. EPA expanded the federal regulations to include greenhouse gases as regulated pollutants. To

adjust the District rules to include federal provisions on GHGs, the Board of Directors adopted the

following new/amended rules on January 20, 2011:

1. New Rule 810, Federal Prevention of Deterioration (PSD) : Rule 810 incorporates by

reference the federal “Prevention of Significant Deterioration of Air Quality” rule

requirements. a

2. Amended Rule 102, Definitions : The District added a definition for “greenhouse gas” or

“greenhouse gases.” In addition, the definition of attainment pollutant was amended to

exclude greenhouse gases.

a The District has an existing PSD rule: Rule 803, Prevention of Significant Deterioration (PSD). Pursuant to

requirements of the California Health and Safety code, the District will retain Rule 803 as a locally enforceable rule.3

3. Amended Rule 202, Exemptions to Rule 201 : Rule 202.D.2 in cluded a change to ensure

existing permit exemptions will continue to apply to sources of GHGs.

4. Amended Rule 370 , Potential to Emit ̶ Limitations for Part 70 Sources, and Amended Rule

130 1, Pa rt 70 Operating Permits ̶ General Information : The Di strict revised definitions in

both rules for consistency and to include the federal GHG threshold for a major source. The

rule amendments also incorporate the federal definition of GHGs

, found in the Part 70 (Title

V) regulation (40 CFR 70.2).

EPA noti fied the District that changes were necessary for inclusion into the SIP. Changes

requested by EPA include 1) adding a requirement to notify the EPA when the District receives a

permit application for a PSD

- type permit, 2) adding provisions on determining an application is

complete, 3) adding a one

- year deadline from the receipt of a complete application for the District

to take action on the application, 4) deleting text that revised definitions found in the federal law,

and 5) updating the “in effect” da te.

Implications to the Regulated Community :

Rule 810 benefits the regulated community by increasing greenhouse gas emission trigger levels for

PSD permits. Adoption of amended Rule 810, and inclusion into the SIP, will allow the District to

process any required federal PSD permit applications. Thi s avoids facilities submitting PSD permit

applications directly to USEPA will streamline the permit process at the local level.

Emission Reductions and Cost Effectiveness :

The proposed amended rule govern s administrative processes for permitting. The proposed

amended rule do es not require specific control techniques. Hence, there are no emission reductions

or cost

- effectiveness figures associated with this project.

Implications to the APCD Budget :

The District anticipates the current staff ing levels will handle the revised permitting procedures and

new applications.

Public Review :

The District made documents on this project available for review on April 17, 2013 . On May 8,

2013 , the Community Advisory Council voted to recommend that the Board adopt the proposed

amended rule

. O n May 19, 2013, t he Distr ict published a public notice on the June 20, 2013 Board

Hearing to adopt proposed amended Rule 810

.4

California Environmental Quality Act (CEQA) :

The adoption of the amended rule will not result in the relaxation of air pollution control

requirements in general, or in the relaxation of air pollution control standards that apply to any

specific existing facilities (or processes). Pursuant to § 15061(b)(3) of the State CEQA Guidelines,

the project is exempt from CEQA as it can be seen with certainty that there is no possibility that the

activity in question may have a significant effect on the environment. As a result, the proje ct is

exempt from any additional CEQA review. A Notice of Exemption will be prepared in compliance

with CEQA Guidelines Section 15162.

Concurrences :

County Counsel has reviewed this Board Letter and its attachments and approves them as to form.

SPECIA L INSTRUCTIONS:

After adoption by the Board, please have the Board Chair sign the attached resolution and return a

copy along with a copy of the minute order to Douglas Grapple of the Air Pollution Control

District.

Attachments

Resolution

Attachment 1

- CEQA Findings

Attachment 2

- Rule Findings

Attachment 3

- Public Comments and Responses to Public Comments

Attachment 4

- Proposed Amended Rule 810, Federal Prevention of Significant

Deterioration (PSD)

Attachment 5

- Project Description Summary