T 805.781.5912 F 805.781.1002 W slocleanair.org 3433 Roberto Court, San Luis Obispo, CA 93401

TO: Board of Directors, Air Pollution Control District 

FROM: Larry R. Allen, Air Pollution Control Officer 

DATE: January 22, 2014 

SUBJECT: Request for Approval to Amend Rule 220, Federal Prevention of Significant 

Deterioration (PSD) 

SUMMARY 

The Board is being asked to consider adoption of proposed amendments to the San Luis 

Obispo County Air Pollution Control District Rules and Regulations. Rule 220, Federal 

Prevention of Significant Deterioration (PSD), would be revised to address noticing 

requirements required by federal regulation and incorporate changes based on recent court 

decisions. The proposed revision does not add any additional requirements or regulations, 

but instead will allow the District to administer the federal program, and provide local 

permitting and support to local regulated industry in lieu of EPA. 

Without the proposed changes, the District will not be granted delegated authority and 

regulated industry would be subject to EPA’s lengthy permit timelines and onerous appeals 

process. 

RECOMMENDATION

District staff recommends approval by resolution of the proposed amendments to the Rules 

and Regulations of the San Luis Obispo County Air Pollution Control District. 

DISCUSSION

Under the federal Clean Air Act (CAA), new or modified major sources of emissions are 

subject to the Title I Prevention of Signification Deterioration (PSD) permit requirements for 

new construction in attainment areas, and the Title V permit requirements for new and 

existing sources in both attainment and nonattainment areas. Both programs require a 

stringent federal permitting process that includes extensive regulatory analysis of the source, 

application of Best Available Control Technology, and detailed tracking and reporting of 

emissions by the affected source. For our region, a major source is defined in the CAA as any 

source emitting between 100 to 250 tons or more per year of any regulated criteria pollutant. 

D-3-1 APCD BOARD 1/22/2014
APCD Board – Amendment to Rule 220 

January 22, 2014 

Page 2 of 2 

T 805.781.5912 F 805.781.1002 W slocleanair.org 3433 Roberto Court, San Luis Obispo, CA 93401

The District adopted Rule 220, an EPA crafted model rule, in 2011 to seek federal delegation. After 

adoption of their recommended language, however, EPA subsequently determined that the public 

noticing provisions did not meet federal requirements. The proposed changes will address those 

issues and to seek delegation of EPA’s permit authority for the federal Prevention of Signification 

Deterioration (PSD) permit program. The proposed amended rule is expected to streamline the 

permitting requirements and allow the District to use local timelines and appeal processes for 

projects that are subject to federal PSD. 

A notice was published and the hearing notice was sent to all interested parties. A public workshop 

was not held because currently no facility is affected by the regulation. 

OTHER AGENCY INVOLVEMENT

The proposed findings and determinations have been sent to the California Air Resources Board. To 

date, no public or agency comments have been received. 

FINANCIAL CONSIDERATIONS 

The Rule 220 changes proposed are not expected to have any significant financial impacts. 

ALTERNATIVES

Deny the Findings and Determinations. The Board could choose not to approve the Resolution 

making necessary findings and determinations. In that case, the District will not be granted 

delegated authority and regulated industry would be subject to EPA’s lengthy permit timelines and 

onerous appeals process. 

D-3-2 APCD BOARD 1/22/2014
AIR POLLUTION CONTROL DISTRICT 

COUNTY OF SAN LUIS OBISPO 

STAFF REPORT 

AMENDED RULE 220 

PREVENTION OF SIGNIFICANT DETERIORATION 

January 22, 2014 Hearing Date 

BACKGROUND 

The San Luis Obispo County Air Pollution Control District (District) proposes to amend Rule 220, 

Prevention of Significant Deterioration to obtain approval from the United States Environmental 

Protection Agency (EPA) to manage the federal PSD program in lieu of EPA. PSD is a review process 

for very large new emission sources. In the last 20 years, the District has reviewed only one project 

that required a PSD permit: a proposed repower project at the Morro Bay Power Plant that was 

subsequently canceled by the project proponent. 

The District adopted Rule 220, an EPA crafted model rule, in 2011 to seek federal delegation. After 

adopting their recommended language, however, EPA subsequently determined the public noticing 

did not meet federal requirements; the proposed changes will address those issues. The amended 

rule is needed to allow the District to administer the federal program and thereby provide local 

permitting, support and processing to regulated industry and avoid lengthy delays that results when 

EPA implements the federal PSD program. Without the proposed changes, the District will not be 

delegated authority and regulated industry would be subject to EPA’s lengthy permit timelines and 

onerous appeals process. It took over 5 years for the MBPP project to obtain an EPA issued PSD 

permit; at that point the applicant had already abandoned the project. 

The proposed amended rule is expected to streamline the permitting requirements and allow the 

District to use local timelines and appeal processes for projects that are subject to federal PSD. 

PROPOSED RULE 

The amended rule is contained in Appendix A. The following summarizes the new/amended rule 

provisions. 

Rule 220, Prevention of Significant Deterioration (PSD) 

Rule 220, will be amended to address noticing requirements required by federal regulation and 

incorporate changes based on recent court decisions. The proposed revision does not add any 

additional requirements or regulations, but instead will allow the District to administer the federal 

program in lieu of EPA. 

D-3-3 APCD BOARD 1/22/2014
EMISSION REDUCTION / COST-EFFECTIVENESS 

Emission Reductions 

The proposed amended rule changes are administrative in nature relative to permitting actions; 

they are not control measures. Hence, there are no emission reductions expected from the 

proposed rule action. 

Cost-Effectiveness and Incremental Cost-Effectiveness 

There are no cost-effectiveness or incremental cost-effectiveness figures relative to this rulemaking 

task. The amended rule is not implementing a control measure or retrofit control requirements. 

Further, there are no emission reductions anticipated. Thus, the requirements of California Health 

and Safety Code (H&SC) Section 40703 and Section 40920.6 do not apply. 

ANALYSIS OF EXISTING FEDERAL AND DISTRICT REGULATIONS 

H&SC Section 40727.2(a) requires districts to provide a written analysis of existing regulations prior 

to adopting, amending or repealing a regulation. However, the proposed rule action is consistent 

with categories described in H&SC Section 40727.2(g). Hence, the requirements of H&SC Section 

40727.2(a) are satisfied. 

COMMENTS AND PUBLIC MEETINGS 

A notice was published in the Tribune, the Draft Rule was sent to the Air Resources Board for their 

review and a notice was sent to the District’s Interested Parties List. At the time this report was 

finalized, no comments had been received. 

COMPARISON OF ADJOINING AIR POLLUTION CONTROL DISTRICT RULES 

The adjoining air districts have either adopted, or are in the process of adopting similar rule 

provisions to implement the PSD requirements. 

FINDINGS 

As required in Section 40727 of the California Health and Safety Code (H&SC), the District Board 

must make findings of necessity, authority, clarity, consistency, nonduplication, and reference. 

A. Necessity: The rulemaking is necessary to implement new federal requirements and to 

ensure consistency with neighboring Air Districts. 

B. Authority: Authority is given to the District to adopt rules pursuant to H&SC Sections 

40001 and 40702. 

C. Clarity: The proposed rules have been found by the District to be written in clear English 

and to be as easily understood as possible. 

D. Consistency: The District has found that the proposed rules are consistent with existing 

District Rules and Regulations and with existing state and federal guidelines. 

E. Non-duplication: Amended Rule 220 would implement a federal requirement through a 

local process and not duplicate it. 

D-3-4 APCD BOARD 1/22/2014
F. Reference: By adoption of the proposed rule, the District is implementing, and making 

specific by adoption, applicable provisions of H&SC Section 40001 et seq. 

CONCLUSION AND RECOMMENDATION 

The proposed revisions will help reduce the procedural burden on our permit holders and align our 

thresholds with new federal requirements. Staff recommends that the proposed rules be adopted 

as written. 

ATTACHMENTS 

Attachment 1: includes the full text of Amended Rule 220, with additions to the existing rule 

indicated by underline format, and deletions in strikethrough format. 

REFERENCES 

1. Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule, 40 CFR Parts 51, 

52, 70, and 71, Federal Register, Volume 75, No. 106, U.S. Environmental Protection Agency, June 

3, 2010. 

D-3-5 APCD BOARD 1/22/2014
ATTACHMENT 1 

UNDERLINE/STRIKEOUT REVISION FORMAT

D-3-6 APCD BOARD 1/22/2014
San Luis Obispo County APCD 220-1 {date of adoption}03/23/2011

RULE 220. FEDERAL PREVENTION OF SIGNIFICANT DETERIORATION 

 (Adopted 3/23/11, revised date of adoption)

A. Purpose 

The federal Prevention of Significant Deterioration (PSD) program is a construction 

permitting program for new major facilities and major modifications to existing major 

facilities located in areas classified as attainment or in areas that are unclassifiable for 

any criteria air pollutant. The application, processing requirements and procedures 

are those contained in District Rules 202 through 214 unless otherwise superseded by 

federal regulation this rule. The intent of this Rule is to incorporate the federal PSD 

rule requirements into the District’s Rules and Regulations by incorporating the 

federal requirements by reference. 

B. Applicability 

The provisions of this rule shall apply to any source and the owner or operator of any 

source subject to any requirement under Title 40 of the Code of Federal Regulations 

(hereinafter, 40 CFR) Part 52.21 as incorporated into this rule. 

C. Incorporation by Reference 

Except as provided below, the provisions of Title 40 of the Code of Federal 

Regulations (CFR) Part 52.21 40 CFR Part 52.21, in effect (insert date 

amended)August 2, 2010 are incorporated herein by reference and made part of the 

Rules and Regulations of the San Luis Obispo Air Pollution Control District. 

1. The following subsections of 40 CFR Part 52.21 are excluded: (a)(1), (b)(55-58), 

(f), (g), (k)(2), (p)(6-8), (q), (s), (t), (u), (v), (w), (x), (y), (z) and (cc). 

2. The following definitions found in incorporated provisions of 40 CFR Part 

52.21(b) are revised as follows: 

a. The definition of “potential to emit” contained in 40 CFR, Part 

52.21(b)(4), is revised so that the phrase “is federally enforceable” shall 

read “is federally enforceable or enforceable as a practical matter.” 

b. The definition of “allowable emissions” contained in 40 CFR, Part 

52.21(b)(16), is revised so that: 

1) the phrase “unless the source is subject to federally 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 operation, or both.”

D-3-7 APCD BOARD 1/22/2014
San Luis Obispo County APCD 220-2 {date of adoption}03/23/2011

2) paragraph (iii) shall read as follows: “The emissions rate specified 

as an enforceable permit condition, including those with a future 

compliance date.” 

3. The following terms found in 40 CFR Part 52.21(b) are revised as follows: 

a. The term “administrator” means shall read as follows: 

1) “federal EPA administrator” in 40 C.F.R. 52.21(b)(17), (b)(37)(i), 

(b)(43), (b)(48)(ii)(c), (b)(50)(i), (b)(51), (l)(2) and (p)(2); and 

2) “APCO or Control Officer” elsewhere, as defined in Rule 105, 

Definitions. 

b. The phrase “paragraph (q) of this section” in 40 CFR 52.21(p)(1) and 

(p)(7) (1)(2) shall read as follows: the public notice and comment 

provisions of Rule 220, Section E below. 

c. The definition of the term “Subject to regulation” as defined in 40 CFR 

52.21(b)(49)(ii)(a) shall be read as: “Multiplying the mass amount of 

emissions (tpy), for each of the six greenhouse gases in the pollutant 

GHGs, by the gas’s associated global warming potential published at 

Table A-1 to subpart A of part 98 of this chapter--Global Warming 

Potentials.” 

d. The subparagraph in 40 CFR 52.21(i)(5)(i)(c) shall be revised to read as: 

“PM2.5--no de minimis air quality level is provided;”.

D. Requirements:

 

1. The Control Officer shall provide written notice of any permit application for a 

proposed major stationary source or major modification to the EPA administrator. 

 Such notification shall include a copy of all information relevant to the permit 

application and shall be given within 30 days of receipt and at least 60 days prior 

to any public hearing on the application for a permit to construct. 

2. The Control Officer shall determine whether an application is complete not later 

than 30 days after receipt of the application or after such longer time as both the 

applicant and the Control Officer may agree. If the Control Officer determines 

that the application is not complete, the applicant shall be notified in writing of 

the decision specifying the information that is required. Upon receipt of any 

resubmittal of the application, a new 30-day period to determine completeness 

shall begin. Upon determination that the application is complete, the Control 

Officer shall notify the applicant in writing. The date of receipt of the application 

shall be the date on which the reviewing authority received all required 

information. 

D-3-8 APCD BOARD 1/22/2014
San Luis Obispo County APCD 220-3 {date of adoption}03/23/2011

3. An owner or operator must obtain a prevention of significant deterioration (PSD) 

permit pursuant to this Rule before beginning actual construction of a new major 

stationary source, a major modification, or a PAL major modification, as defined 

in 40 CFR 52.21(b). 

42. Not withstanding the provisions of any other District Rule or Regulation, the 

APCO/Control Officer shall require compliance with this rule prior to issuing a 

federal Prevention of Significant Deterioration permit as required by Clean Air 

Act (CAA) Section 165. 

53. The applicant shall pay the applicable fees specified in District Rule 301 Fees and 

Rule 302, Schedule of Fees.

6. Greenhouse gas emissions shall not be subject to the requirements of subsections 

(k) or (m) of 40 CFR Part 52.21 in effect on {date of adoption}

E. Public Participation: 

1. Prior to issuing a federal PSD permit pursuant to this rule and within one year

after receipt of a complete application, the APCO/Control Officer shall: 

a. Make a preliminary determination whether construction should be 

approved with conditions or disapproved. 

b. Make available in at least one location in San Luis Obispo County 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 

the proposed permit and a copy or summary of other materials, if any, 

considered in making the preliminary determination. 

c. Notify the public, by advertisement in a newspaper of general circulation 

in San Luis Obispo County, of the application, the preliminary 

determination, the degree of increment consumption that is expected from 

the source or modification, the opportunity for comment at a public 

hearing and of the opportunity for written public comment. 

d. Send a copy of the notice of public comment to the applicant, EPA Region 

9, any persons requesting such notice and any other interested 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 

comprehensive regional land use planning agency, and any State, Federal 

Land Manager, or Indian Governing body whose lands may be affected by 

emissions from the source or modification. 

e. Provide opportunity for a public hearing for persons to appear and submit 

written or oral comments on the air quality impact of the source, 

alternatives to it, the control technology required, and other appropriate 

D-3-9 APCD BOARD 1/22/2014
San Luis Obispo County APCD 220-4 {date of adoption}03/23/2011

considerations, if in the APCO’s/Control Officer’s judgment such a 

hearing is warranted. 

f. Consider all written comments that were submitted within 30 days after 

the notice of public comment is published and all comments received at 

any public hearing(s) in making a final decision on the approvability of 

the application and make all comments available, including the District’s 

response to the comments, for public inspection in the same locations 

where the District made available preconstruction information relating to 

the proposed source or modification. 

g. Make a final determination whether construction should be approved with 

conditions or disapproved. 

h. Notify the applicant in writing of the final determination and make such 

notification available for public inspection at the same location where the 

District made available preconstruction information and public comments 

relating to the source. 

D-3-10 APCD BOARD 1/22/2014
BOARD OF DIRECTORS

AIR POLLUTION CONTROL DISTRICT

COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA

 22 day January , 2014 

RESOLUTION NO._____________ 

RESOLUTION OF THE AIR POLLUTION CONTROL BOARD 

AMENDING THE RULES AND REGULATIONS OF THE 

SAN LUIS OBISPO COUNTY AIR POLLUTION CONTROL DISTRICT 

TO ADOPT REVISIONS TO RULE 220, PREVENTION OF SIGNIFICANT DETERIORATION 

The following resolution is hereby offered and read: 

WHEREAS, a revision of the Air Pollution Control District's Rules and Regulations is needed to 

align District Rules with new federal provisions and to allow delegation of federal permitting to the 

District; and 

WHEREAS, this Board finds that the Rule has been composed and amended to the extent 

reasonably practicable, and are written in plain English wherever feasible, in order to assure that the 

Rule can be easily understood by the persons directly affected by said Rule; and 

WHEREAS, Section 40001 of the California Health and Safety code establishes authority for 

the District to adopt the Rule; and 

WHEREAS, the Rule, as written and amended, is consistent with existing statutes, court 

decisions, and State and Federal Regulations; and 

WHEREAS, the Rule, as written and amended, does not result in duplication of existing State 

or Federal statutes or regulations in that the Rule does not impose the same requirements as an 

existing State or Federal Regulation, except to the extent that the Rule is necessary or proper to 

execute the powers and duties granted to and imposed upon the District; and 

WHEREAS, the Rule, as written and amended, is exempt from CEQA under section 15061(b)(3) 

of the CEQA guidelines because it can be seen with certainty that there is no possibility that these 

changes may have a significant effect on the environment. The proposed changes do not establish 

new requirements or require modifications to facilities; and 

D-3-11 APCD BOARD 1/22/2014
WHEREAS, the Board has on this date held and conducted a duly noticed Public Hearing on

said amendments to the Rules and Regulations of the San Luis Obispo County Air Pollution Control

District and has determined the necessity for said amendments.

WHEREAS, the District has complied with H&SC Sections 40725 through 40728 in adopting

these regulatory changes; and

NOW, THEREFORE, BE lT RESOLVED AND ORDERED by the Air Pollution Control Board of the

San Luis Obispo County Air Pollution Control District that amendments to the District Rules and

Regulations, specifically Rule 220, attached hereto, and incorporated by reference herein as Exhibit

A, are hereby adopted to be effective on Janua ry 22, 2014.

On motion of Director seconded by Director

and passed and adopted on the following roll call vote:

Ayes:

Noes:

Absent:

Abstaining:

Chair, Air Pollution Control District Board

San Luis Obispo County

Attest:

Acting Clerk, Air Pollution Control District Board

Approved as to Form and Legal Effect:

Raymoff A. Biering

District Counsel

Date:

D-3-12 APCD BOARD 1/22/2014
EXHIBIT A 

RULE 220, PREVENTION OF SIGNIFICANT DETERIORATION 

(Board Clerk has original rule text, 

copy not included here for brevity) 

D-3-13 APCD BOARD 1/22/2014