AIR POLLUTION CONTROL DISTRICT 

July 6, 2012 

Gerardo Rios 

110 Maple S1ree1, Auburn, CA 95603 

www.placer.ca.gov/apcd 

Chief, Air Permits Office 

EPA, Region IX 

75 Hawthorne Street 

San Francisco, CA 94105 

• (530) 745-2330 • Fax (530) 745-2373 

Thomas J. Christofk, Air Pollution Control Officer 

Subject: Clarifications of District Rule 518 and 40 CFR 5L166 

Dear Mr. Rios: 

Your office has requested that we provide certain clarifications related to our Rule 518, 

Prevention of Significant Deterioration (PSDl Permit Program, and how its requirements 

and referenced requirements from District Rule 502, New Source Review, satisfy specific 

conditions of the Prevention of Significant Deterioration (PSD) program requirements of 

40 CFR 5L166. 

We understand that EPA's interest is in providing the greatest possible assurance that the 

PSD program will be implemented in a manner consistent with all underlying regulations, 

and to that end we are pleased to offer the attached details about the District intentions 

with respect to implementing the PSD program upon EPA's approval of District Rule 518 

into the State Implementation Plan. 

Please contact Don Duffy at (530) 745-2336 if you have any questions or would like to 

discuss this further. 

a 

Thomas J. Christ 

Air Pollution Control Officer 

Attachment 
ATTACHMENT 

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT RULE 518 

CLARIFICATION OF CERTAIN REQUIREMENTS OF 40 CFR 51.166 

Permit Processing Procedures and Public Participation 

District Rule 502, New Source Review, was approved as part of the Placer County portion of the California 

State Implementation Plan (SIP) on July 27, 2011. Section 102, Applicability, states that "the purpose of 

this rule is to provide for the review of new and modified stationary air pollution sources and to provide 

mechanisms, including emission offsets, by which authorities to construct for such sources may be granted 

without inteifering with the attainment or maintenance of ambient air quality standards." This means that 

a District NSR permit would be required in addition to the PSD permit and all the provisions of Rule 502 

would apply, including emission offsets and permit processing procedures and public participation. 

Below are clarifications of the specific provisions in Rule 502 that assure the public participation and 

permit processing requirements for PSD programs contained in 40 CFR 51.166 (q) are adequately 

addressed. 

• 40 CFR 5I.I66(q)(I). The reviewing authority shall notify all applicants within a specified time 

period as to the completeness of the application or any deficiency in the application or 

information submitted. In the event of such a deficiency, the date of receipt of the application 

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

These requirements are·met by District Rule 502, Section 402, excerpted as Exhibit A. 

• 40 CFR 5I.I66(q)(2). Within one year after receipt of a complete application, the reviewing 

authority shall: 

(i) Make a preliminary determination whether construction should be approved, approved 

with conditions, or disapproved. 

This requirement is met by District Rule 502, Section 404.1, excerpted in Exhibit B. 

Additional Requirements 

• 40 CFR 51.166(p)(l) requires the reviewing authority to provide notice to EPA of every action 

related to the consideration of a PSD permit. 

40 CFR 5I.I66(p)(l) - Notice to EPA. The plan shall provide that the reviewing 

authority shall transmit to the Administrator a copy of each permit application relating to 

a major stationary source or major modification. and provide notice to the Administrator 

of every action related to the consideration of such permit. 

This requirement is met by District Rule 502, Section 407, as stated below: 

Except as provided in Section I 03, the APCO shall make available for public inspection 

at the District's office the information submitted by the applicant and the APCO's 

analysis no later than the date the notice of the preliminary decision is published. 

Information submitted which contains trade secrets shall be handled in accordance with 

Section 6254.7 of the California Government Code and relevant sections of the 

California Administrative Code. Further. all such information shall be transmitted no 

later than the date of publication to the California Air Resources Board and the U.S. 

Environmental Protection Agency regional office. and to any partv which requests such 

information. (Underline for emphasis) 
Program Transfer 

Pursuant to Section 110(a)(2)(E)(i) of the Clean Air Act, the following is a written statement and citations 

to demonstrate that the District has adequate personnel, funding, and authority under State and/or local law 

to implement the PSD program within the District. 

a. Existing PSD permits and Pending EPA PSD Permit Actions 

EPA has identified one PSD permit (Sierra Pacific Industries -Lincoln) issued by EPA to a source 

located in the District. This attachment and the letter to which it is attached serve as confirmation 

that, as part of and concurrent with, EPA's approval of the District's PSD program into the SIP, 

the District is requesting approval to exercise its authority pursuant to SIP approved Rule 518 to 

administer the PSD program with respect to this source, including authority to conduct general 

administration of this existing permit, authority to process and issue any and all subsequent PSD 

permit actions relating to such permit including, for example, modifications, amendments, or 

revisions of any nature, and authority to enforce such permits. Additionally, this PSD source has 

filed an application with EPA to update the PSD permit which has not been acted upon by EPA. 

The District requests that this application be turned over to the District for action. 

b. Statement Pursuant to Section IIO(a)(2)(E)(i) of the Clean Air Act 

The District has the appropriate legal authority to implement and enforce the federal PSD 

program. Under both the federal and California Clean Air Acts, local agencies, such as the 

District, are granted broad regulatory authority over stationary sources of air pollution. 

For instance, in enacting the federal Clean Air Act ("CAA'') Congress expressly stated that the 

control of air pollution is "the primary responsibility of States and local govermnerit." 42 U.S.C. § 

740l(a)(4). This broad regulatory authority is found throughout the CAA. See e.g., 42 U.S.C. 

§7416 (providing that, with three exceptions relating to mobile sources, states may adopt and 

enforce measures that are more stringent than federal requirements). 

Under California law, the local air districts, such as the District, are provided with similarly broad 

regulatory authority. For instance, California Health and Safety Code (H&SC) section 39002 

provides that "Local and regional authorities have the primary responsibility for control of air 

pollution from all sources other than vehicular sources." In fact, local authorities may establish 

more stringent standards for sources under their control than those set forth in state law. !d. This 

authority applies to the implementation of both the California and the federal Clean Air Acts. See 

H&SC § 4000l(a) (stating that the local air districts have authority to "adopt and enforce rules and 

regulations to achieve and maintain the state and federal ambient air quality standards in all areas 

affected by emission sources under their jurisdiction, and shall enforce all applicable provisions of 

state and federal law"). 

Towards this end, California law authorizes local air districts to establish and implement 

permitting programs that govern air pollution sources within their jurisdiction (H&SC § 42300(a)). 

A permit program established pursuant to this authority must ensure, among other things, that any 

equipment for which the permit is issued will not prevent or interfere with attainment or 

maintenance of any applicable ambient air quality standard (H&SC § 4230l(a)). 

The District's permitting program currently implements requirements contained in both the 

California and federal Clean Air Acts. Rule 501, General Permit Requirements, was most recently 

. amended by the District Board of Directors on August 12,2010 and sent to EPA by the California 

Air Resources Board on December 7, 2010, for incorporation into the State Implementation Plan 

(SIP). This rule requires any person building, erecting, placing on site, altering, or replacing any 

article, machine, equipment or other contrivance, the use of which may cause, eliminate, reduce, 

or control the issuance of air contaminants, shall ftrst obtain authorization for such construction 

from the Air Pollution Control Officer. In general, sources that emit less than two pounds per day 

of any pollutant are exempt from this requirement. Rule 502, New Source Review, requires 
BACT and offsets for all pollutants emitted over specified thresholds. EPA most recently 

approved this rule into the SIP on July 27, 2011, and the District has subsequently amended the 

rule and the rule was submitted to EPA by the California Air Resources Board seeking full 

approval on November 18, 2011. 

On February 10, 2011, the District adopted Rule 518, Prevention of Significant Deterioration 

(PSDl Permit Program, which if approved by EPA, will allow the District to administer the PSD 

permit program for sources located within its jurisdiction. This will streamline federal permitting 

efforts by allowing the District to issue all of the required state and federal preconstruction 

permits. 

The District· is authorized by state law to enforce its rules, regulations and orders, including 

conditions contained in a District-issued Title V permit or PSD permit, by filing a civil action for 

injunctive relief and civil penalties (H&SC §§41513; 42402 -42403). 

The District's permitting and compliance departments are comprised of an equivalent 7.5 full time 

personnel, combined. These personnel include experienced and capable engineers and field 

inspectors. The District currently processes approximately 70 pre-construction. permit applications 

per year and enforces compliance with 1200- 1300 active permits. The District expects to only 

occasionally process a PSD permit application, but believe the District has adequate staff to 

process the PSD applications. Under the District's Rule 601, Permit Fees, a PSD application fee is 

charged to cover the District's pre-application costs and all hours expended while processing PSD 

permits are charged at an hourly rate adequate to cover salaries and overhead for the work 

performed. These rates are adjusted yearly. In addition, the on-going costs of PSD compliance 

efforts for PSD requirements incorporated into Title V permits are covered by an annual 

supplemental permit fee adopted by the District pursuant to the funding requirements of the Title 

V program. Finally, the District currently, under a pilot grant program, has received Section 105 

funds from EPA that are partially dedicated to District PSD program support. 
EXHIBIT A 

Excerpt of Rule 502, New Source Review, Section 402 
Rule 502, New Source Review. Section 402 

402 COMPLETE APPLICATION REQUIREMENT: The APCO shall determine 

whether an application is complete no later than 30 days after receipt of the 

application, or after such longer time period that the applicant and the APCO 

have agreed to in writing. 

If the APCO determines that the application is not complete, the applicant shall 

be notified in writing of the decision specifying the information required. Upon 

receipt of any re submittal of the application, a new 30-day period to determine 

completeness shall begin. Completeness of an application or a re-submitted 

application shall be evaluated on the basis of the information requirements set 

forth in District regulations as they exist on the date on which the application or 

re-submitted application was received, or when the CEQA-related information 

which satisfies the requirements of the District's CEQA Guidelines has been 

received, whichever is later. 

The APCO may, during the processing of the application, request an applicant to 

clarify, amplify, correct, or otherwise supplement the information submitted in the 

application. 
EXHIBITB 

Excerpt of Rule 502, New Source Review, Section 404.1 
Rule 502, New Source Review. Section 404.1 

404.1 TIMING FOR FINAL ACTION 

The APCO shall not take final action for any project for which an Environmental 

Impact Report (EIR) or a Negative Declaration is being prepared until a final EIR 

for that project has been certified or a Negative Declaration for that project has 

been approved, and the APCO has considered the information in that final EIR or 

Negative Declaration. 

The APCO shall take final action on the application within whichever of the 

following periods of time is longer: 

404.1.1 Within 180 days after the certification of the final EIR or approval of the 

Negative Declaration, or 

404.1.2 Within 180 days of the date on which the application was determined 

complete by the APCO.