AIR POLLUTION CONTROL DISTRICT



### July 6, 2012 Gerardo Rios 110 Maple S1ree1, Auburn, CA 95603 www.placer.ca.gov/apcd



### Chief, AirPermits Office EPA, Region IX 75 Hawthorne Street SanFrancisco, CA 94105 • (530) 745-2330 • Fax (530) 745-2373 Thomas J. Christofk, Air Pollution Control Officer



### Subject: Clarifications ofDistrictRule 518 and40 CFR 5L166 DearMr. Rios: Your office has requested that we provide certain clarifications related to our Rule 518, Prevention ofSignificant Deterioration (PSDl PermitProgram, and how its requirements and referenced requirements from District Rule 502, New Source Review, satisfy specific conditions ofthe Prevention of Significant Deterioration (PSD) program requirements of 40 CFR 5L166. Weunderstand that EPA's interest is in providing the greatest possible assurance that the PSD program will be implementedin a manner consistentwith all underlying regulations, and to that end we are pleased to offer the attached details about the District intentions with respectto implementing the PSD program uponEPA's approval ofDistrict Rule 518 into the StateImplementationPlan. Please contact Don Duffy at (530) 745-2336 ifyou have any questions or would like to discuss this further. 

# a

Thomas J. Christ AirPollutionControl Officer

Attachment

### ATTACHMENT PLACERCOUNTYAIRPOLLUTION CONTROLDISTRICT RULE 518

CLARIFICATION OFCERTAINREQUIREMENTS OF40 CFR 51.166

PermitProcessingProcedures and PublicParticipation DistrictRule 502, New SourceReview, was approved as part ofthe Placer County portion ofthe California State Implementation Plan (SIP) on July 27, 2011. Section 102, Applicability, states that 

### "the purpose of this rule is to providefor the review ofnew and modified stationary airpollution sources and to provide mechanisms, including emission offsets, by which authorities to construct for such sources may begranted 

### without inteifering with the attainmentormaintenance of ambient airquality standards." This means that a District NSR permit would be required in addition to the PSD permit and all the provisions ofRule 502 would apply, including emissionoffsets andpermitprocessingprocedures 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 ofsuch a deficiency, the date ofreceipt ofthe application shallbe the date on which the reviewing authority receivedall required information. Theserequirements are·metby DistrictRule 502, Section402, excerpted as ExhibitA.



### • 40 CFR 5I.I66(q)(2). Within one year after receipt ofa complete application, the reviewing authority shall: (i) Make apreliminary determination whether construction should be approved, approved with conditions, ordisapproved. This requirement is metbyDistrictRule 502, Section404.1, excerpted in ExhibitB.

Additional Requirements

• 40 CFR 51.166(p)(l) requires the reviewing authority to provide notice to EPA ofevery action related to the considerationofaPSDpermit. 

### 40 CFR 5I.I66(p)(l)

- Notice to EPA. The plan shall provide that the reviewing authority shall transmit to theAdministratora copy of eachpermitapplication relating to a majorstationary sourceormajormodification.andprovidenotice to theAdministrator 

### of everyaction relatedto the consideration of suchpermit. This requirement is metby DistrictRule502, Section407, as statedbelow: 

### Except as provided in Section I03, theAPCO shall make availableforpublic inspection at the District's office the information submitted by the applicant and the APCO's analysis no later than the date the notice ofthe 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 ofpublication to the California Air Resources Board and the U.S. Environmental ProtectionAgency regional office. and to any partv which requests such 

### information. (Underline for emphasis)ProgramTransfer Pursuant to Section 110(a)(2)(E)(i) ofthe Clean Air Act, the following is a written statement and citations to demonstrate that the Districthas adequatepersonnel, funding, and authority under State and/or local law to implementthe PSD program within the District.

a. ExistingPSD permits and Pending EPAPSDPermitActions EPAhasidentifiedonePSDpermit (SierraPacific Industries -Lincoln) issued byEPA to a source located in the District. This attachment and the letter to which it is attached serve as confirmation that, as part ofand concurrent with, EPA's approval ofthe 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 ofthis 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 ofany 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 Districtrequests that this applicationbe turned over to the Districtfor action. b. StatementPursuantto Section IIO(a)(2)(E)(i) ofthe CleanAirAct 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 broadregulatory authority over stationary sources ofair pollution. For instance, in enacting the federal Clean Air Act ("CAA'') Congress expressly stated that the control ofair pollution is "theprimary responsibility ofStates 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 stringentthan 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 ofboth the California and the federal Clean Air Acts. See H&SC §4000l(a) (stating that the local air districts have authority to "adopt and enforcerules and regulations to achieve and maintain the state and federal ambient air quality standards in all areas affected by emission sources under theirjurisdiction, 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 airpollution sources within theirjurisdiction (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 ofany applicable ambient air quality standard (H&SC §4230l(a)). The District's permitting program currently implements requirements contained in both the California and federal CleanAir Acts. Rule 501, General PermitRequirements, was mostrecently

.amended by the District Board ofDirectors 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 ofwhich 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, requiresBACT 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 onNovember 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 itsjurisdiction. 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 orPSD permit, by filing a civil action for injunctivereliefand civil penalties (H&SC §§41513; 42402 -42403). TheDistrict'spermitting and compliance departments are comprised ofan equivalent7.5 full time personnel, combined. These personnel include experienced and capable engineers and field inspectors. The District currently processes approximately 70 pre-construction.permitapplications 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, PermitFees, aPSD applicationfee 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 ofPSD 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 ofthe Title V program. Finally, the District currently, under a pilot grant program, has received Section 105 funds from EPAthatarepartiallydedicated to DistrictPSDprogram support.

### EXHIBITA Excerpt ofRule 502, NewSourceReview, 

### Section402

### Rule 502, NewSource Review. 

### Section402 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 ExcerptofRule 502, NewSource Review, 

### Section404.1

### Rule 502, NewSource Review. 

### Section404.1 404.1 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 bythe APCO.