Agenda Date: January 20, 2011 

Agenda Placement: Regular 

Estimated Time: 10 min 

Continued Item: No 

 

Board Agenda Item

TO: Air Pollution Control District Board 

FROM: Terry Dressler, Air Pollution Control Officer 

CONTACT: Douglas Grapple, 961-8883 (grappled@sbcapcd.org) 

SUBJECT: One New Rule and Four Amended Rules to Implement EPA’s Federal Prevention of 

Significant Deterioration and Part 70 Greenhouse Gas Tailoring Rule 

RECOMMENDATION: 

That the Board: 

A. Hold a public hearing to receive testimony on proposed new Rule 810 (Federal Prevention 

of Significant Deterioration) and proposed amended Rules 102 (Definitions), 202 

(Exemptions to Rule 201), 370 (Potential to Emit ̶ Limitations for Part 70 Sources), and 

1301 (Part 70 Operating Permits ̶ General Information). 

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

result in the following actions: 

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

Environmental Quality Act (CEQA) and the CEQA guidelines. 

2. Rule Findings: Adopt the associated Rule Findings (Attachment 2) in support of the 

proposed new rule and amended rules pursuant to Health and Safety Code Section 40727 

regarding necessity, authority, clarity, consistency, nonduplication, and reference. The 

Rule Findings also acknowledge public comments on the proposed new rule and 

amended rules and adopt the responses to public comments as findings of the Board (See 

Attachment 3). 

3. Rule Adoption and Amendments: Adopt proposed new and amended rules (Attachment 

4). 
 2 

EXECUTIVE SUMMARY: 

EPA recently added greenhouse gases to the list of regulated pollutants. Because greenhouse gas 

emissions from most sources generally exceed existing levels of significance for criteria pollutants, 

EPA "tailored" their regulations when they included greenhouse gases. Collectively, the amended 

regulations are referred to as EPA Greenhouse Gas Tailoring Rule. 

The Santa Barbara County Air Pollution Control District (District) proposes one new rule and 

amendments to four existing rules to implement EPA Greenhouse Gas Tailoring Rule provisions. 

Adoption of District rules to implement these EPA provisions will benefit the regulated community 

by increasing greenhouse gas emission trigger levels for: 

1. Prevention of Significant Deterioration permits, and/or 

2. federal Part 70 operating permits. 

 

The effective date for the EPA Greenhouse Gas Tailoring Rule is January 2, 2011. Hence, the 

District has expedited the rule development process for this project. 

 

DISCUSSION: 

Objectives: 

To implement EPA Greenhouse Gas Tailoring Rule requirements the District needs to adopt Rule 

810 and amended Rules 102, 202, 370, and 1301. Once adopted, the District will submit: 

1. Rules 102, 202, 370, and 810 for inclusion into the State Implementation Plan (SIP), and 

2. Rules 370 and 1301 for a revision to our Part 70 operating permit program, and 

3. All of the aforementioned rules for inclusion into the federal Outer Continental Shelf Air 

Regulations. 

Background: 

Historically, the 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 following new/amended rules 

are proposed: 

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

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

requirements. Once adopted, the District will request EPA to incorporate Rule 810 into the 

State Implementation Plan (SIP). The District has an existing PSD rule: Rule 803, 

Prevention of Significant Deterioration (PSD). Pursuant to the requirements of the 

California Health and Safety Code, the District will retain Rule 803 as a locally enforceable 

rule. 
 3 

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

or “greenhouse gases.” In addition, the definition of attainment pollutant has been clarified 

to exclude greenhouse gases. 

3. Amended Rule 202, Exemptions to Rule 201: Rule 202.D.2 includes 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 

1301, Part 70 Operating Permits ̶ General Information: The District is revising 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). 

Implications to the Regulated Community: 

Consistent with the EPA GHG Tailoring Rule, the District is implementing requirements on 

greenhouse gases in phases. The initial phase begins upon adoption of the rules. Those provisions 

will have only minor impacts on existing Part 70 permitted sources. For example, such sources will 

need to include greenhouse gas emission data in their applications and address any applicable 

greenhouse gas requirements when they apply for, renew, or revise their permits. 

In a later phase, which starts on July 1, 2011, sources not already subject to federal Prevention of 

Significant Deterioration or Part 70 permitting may become subject to such permitting based solely 

on their greenhouse gas emissions. However, the carbon dioxide equivalent emission thresholds for 

triggering requirements are significantly high (e.g., 75,000 tons per year or 100,000 tons per year, 

depending on the source category). These thresholds provide relief to sources that would otherwise 

have their carbon dioxide equivalent emissions be subject to the much lower criteria pollutant 

emission triggering thresholds. 

Emission Reductions and Cost Effectiveness: 

The proposed new and amended rules govern administrative processes for permitting. The 

proposed rules do 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 staffing levels will handle the revised permitting procedures and 

new applications. 
 4 

Public Review: 

The District made documents on this project available for review on November 24, 2010. On 

December 8, 2010, the Community Advisory Council voted to recommend that the Board adopt the 

proposed new and amended rules. The District published a public notice of the Board Hearing to 

adopt the proposed new rule and the amended rules on December 12, 2010. 

California Environmental Quality Act (CEQA): 

The adoption of the new rule and the amended rules 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 not subject to 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 project is not subject to 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. 

SPECIAL 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 102, Definitions, Proposed Amended Rule 202, 

Exemptions to Rule 201, Proposed Amended Rule 370, Potential to Emit ̶

Limitations for Part 70 Sources, New Rule 810, Federal Prevention of 

Significant Deterioration (PSD), and Proposed Amended Rule 1301, Part 70 

Operating Permits ̶ General Information 

Attachment 5 - Staff Report 
BOARD RESOLUTION 

PROPOSED NEW RULE: 

RULE 810 (FEDERAL PREVENTION OF SIGNIFICANT 

DETERIORATION) 

and 

PROPOSED AMENDED RULES: 

RULE 102 (DEFINITIONS) 

RULE 202 (EXEMPTIONS TO RULE 201) 

RULE 370 (POTENTIAL TO EMIT ̶ LIMITATIONS 

FOR PART 70 SOURCES) 

RULE 1301 (PART 70 OPERATING PERMITS ̶ 

GENERAL INFORMATION) 

January 20, 2011 

Santa Barbara County Air Pollution Control District 

260 San Antonio Road, Suite A 

Santa Barbara, California 93110 

(805) 961-8800 
 

Santa Barbara County APCD 

Resolution – EPA GHG Tailoring Rule Project - 1 - January 20, 2011 

RESOLUTION OF THE AIR POLLUTION 

 CONTROL DISTRICT BOARD OF THE COUNTY OF 

 SANTA BARBARA, STATE OF CALIFORNIA 

In the Matter of ) APCD Resolution No. 

 ) 

Adopting New Rule 810, and Adopting ) 

Amended Rules 102, 202, 370, and 1301 ) 

_______________________________________ ) 

 RECITALS

 1. The Air Pollution Control District Board of the County of Santa Barbara 

(“Board”) is authorized to adopt, amend, or repeal rules and regulations pursuant to Health and 

Safety Code section 40725 et seq. 

 2. Pursuant to Health and Safety Code section 40001, the Board is required to 

adopt and enforce rules and regulations to achieve and maintain the state and federal ambient air 

quality standards. 

 3. The Board has determined that needs exist to 1) adopt new Rule 810 (Federal 

Prevention of Significant Deterioration) , and 2) amend Rules 102 (Definitions), 202 (Exemption 

to Permits), 370 (Potential to Emit - Limitations for Part 70 Sources), and Rule 1301 (Part 70 

Operating Permits - General Information). The new and amended rules will provide the District 

authority to issue federal permits required by the United States Environmental Protection Agency 

Prevention of Significant Deterioration and Part 70 (Title V) Greenhouse Gas Tailoring Rule 

provisions (40 Code of Federal Regulations, Parts 51, 52, 70, and 71). 
 

Santa Barbara County APCD 

Resolution – EPA GHG Tailoring Rule Project - 2 - January 20, 2011 

NOW, THEREFORE, IT IS HEREBY RESOLVED THAT: 

1) This Board has held a hearing and accepted public comments in accordance with 

the requirements of Health and Safety Code section 40725 et seq.

 2) The California Environmental Quality Act (“CEQA”) findings set forth in 

Attachment 1 of the Board Package dated January 20, 2011 (herein after “Board Package”) are 

hereby adopted as findings of this Board pursuant to CEQA and the CEQA guidelines. 

 3) The general rule findings, as set forth in Attachment 2 of the Board Package, are 

hereby adopted as findings of this Board pursuant to Health and Safety Code section 40727. 

 4) The Responses to Public Comments, as set forth in Attachment 3 of the Board 

Package are hereby adopted as findings of this Board. 

 5) The new Rule 810 and amendments to Rules 102, 202, 370, and 1301 as set forth 

in Attachment 4 of the Board Package are hereby adopted as rules of the Santa Barbara County 

Air Pollution Control District pursuant to Health and Safety Code section 40725 et seq. 

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Santa Barbara County APCD 

Resolution – EPA GHG Tailoring Rule Project - 3 - January 20, 2011 

 6) The Board authorizes the Control Officer to transmit Rules 102, 202, 370, 810, 

and 1301 to the State Air Resources Board in compliance with applicable state and federal law. 

Additionally, the Board authorizes the Control Officer to do any other acts necessary and proper 

to obtain necessary approvals of the new and amended rules by the California Air Resources 

Board and the United States Environmental Protection Agency. 

 PASSED AND ADOPTED by the Air Pollution Control District Board of the 

County of Santa Barbara, State of California, this ___ day of ____________, 20__, by the 

following vote: 

 AYES: 

 NOES: 

 ABSTAIN: 

 ABSENT: 

ATTEST: 

TERRY DRESSLER ________________________________ 

CLERK OF THE BOARD, Chair, Air Pollution Control 

 District Board of the County of 

By____________________________ Santa Barbara 

 Deputy 

 APPROVED AS TO FORM: 

 

 DENNIS A. MARSHALL 

 SANTA BARBARA COUNTY COUNSEL 

 By____________________________ 

 Deputy 

 Attorneys for the Santa Barbara County 

 Air Pollution Control District
ATTACHMENT 1 

CEQA FINDINGS 

PROPOSED NEW RULE: 

RULE 810 (FEDERAL PREVENTION OF SIGNIFICANT 

DETERIORATION) 

and 

PROPOSED AMENDED RULES: 

RULE 102 (DEFINITIONS) 

RULE 202 (EXEMPTIONS TO RULE 201) 

RULE 370 (POTENTIAL TO EMIT ̶ LIMITATIONS 

FOR PART 70 SOURCES) 

RULE 1301 (PART 70 OPERATING PERMITS ̶ 

GENERAL INFORMATION) 

January 20, 2011 

Santa Barbara County Air Pollution Control District 

260 San Antonio Road, Suite A 

Santa Barbara, California 93110 

(805) 961-8800 
Santa Barbara County APCD - CEQA Findings - 1-1 January 20, 2011 

EPA GHG Tailoring Rule Project 

ATTACHMENT 1 

CEQA FINDINGS 

Pursuant to State CEQA Guidelines, Santa Barbara County Air Pollution Control District 

(District), as Lead Agency, reviewed the adoption of proposed Rule 810 (Federal Prevention of 

Significant Deterioration) and proposed amended Rules 102 (Definitions), 202 (Exemptions to 

Rule 201), 370 (Potential to Emit ̶ Limitations for Part 70 Sources), and 1301 (Part 70 

Operating Permits ̶ General Information). The District found that there is no potential for 

significant environmental impacts from the adoption of the new and amended rules. 

The Board finds that: 

 The adoption of new Rule 810 and amended Rules 102, 202, 370, and 1301 will not have 

significant adverse impacts on the environment. 

 No relaxation in meeting ambient air quality standards will result. No cross-media 

impacts were identified. 

 Pursuant to § 153061(b)(3) of the CEQA Guidelines, the project is not subject to CEQA 

as it can be seen with certainty that there is no possibility that the activity may have a 

significant effect on the environment. 

The District will prepare and file a Notice of Exemption for the project with the County Clerk of 

the Board in compliance with State Public Resources Code § 21152(b). 

 

Discussion of CEQA Guidelines Section 15061(b)(3) finding of no significant effect 

District staff has evaluated the environmental impacts related to the adoption of new Rule 810 

and amended Rules 102, 202, 370, and 1301 in the context of the California Environmental 

Quality Act (CEQA) Guidelines Section 15061, Review for Exemption. Subsection (a) of this 

section states that, “once a lead agency has determined that an activity is a project subject to 

CEQA, a lead agency shall determine whether the project is exempt from CEQA.” A CEQA 

exemption can be in the form of a statutory exemption, a categorical exemption, or it can be 

covered by the general rule, as expressed in Section 15061(b)(3), that, “...CEQA applies only to 

projects which have the potential for causing a significant effect on the environment. Where it 

can be seen with certainty that there is no possibility that the activity in question may have a 

significant effect on the environment, the activity is not subject to CEQA.”

The project consists of adopting a new Rule 810 and amended Rules 102, 202, 370, and 1301. 

The adoption of the new rule and amendments to four existing rules are necessary to implement 

the United States Environmental Protection Agency Prevention of Significant Deterioration and 

Part 70 (Title V) Greenhouse Gas Tailoring Rule provisions (40 Code of Federal Regulations 

(CFRs), Parts 51, 52, 70, and 71). Specifics about the new and amended rules are provided 

below. 
Santa Barbara County APCD - CEQA Findings - 1-2 January 20, 2011 

EPA GHG Tailoring Rule Project 

Proposed new Rule 810 will incorporate by reference the federal “Prevention of Significant 

Deterioration of Air Quality” rule requirements. Once adopted, the District will request EPA to 

incorporate Rule 810 into the State Implementation Plan (SIP) for national primary ambient air 

quality standards. The District has an existing Prevention of Significant Deterioration (PSD) 

rule: Rule 803, Prevention of Significant Deterioration (PSD). Once EPA has incorporated Rule 

810 into the SIP, the District will request that Rule 803 be withdrawn from consideration for 

incorporation into the SIP. The District will retain Rule 803 as a locally enforceable rule. 

The proposed revisions include a number of changes. In Rule 102, a definition is being added 

for “greenhouse gas” or “greenhouse gases” (GHG). In addition, the definition of “attainment 

pollutant” has been clarified to exclude GHG. Rule 202 includes a change to ensure existing 

permit exemptions will continue to apply to sources of GHGs. Definitions in Rule 370 and Rule 

1301 are amended for consistency purposes and to reference the federal GHG permitting 

thresholds specified in the Greenhouse Gas Tailoring Rule. The Rule 370 and Rule 1301 

amendments also incorporate the federal definition of GHGs, found in the Part 70 (Title V) 

regulation (40 CFR 70.2). 

The Greenhouse Gas Tailoring Rule provisions regulate GHG emissions when a new stationary 

source is built or an existing source is modified, and operation of the new or modified stationary 

source results in increased GHG emissions above the rule’s thresholds. For federal PSD 

purposes, existing sources of GHGs are only regulated if and when they are modified - for 

example, when they are reconstructed or expanded. A source that undergoes analysis under the 

federal PSD permit program may need to incorporate Best Available Control Technology 

(BACT) for their GHG emissions. 

When required, BACT for GHG emissions is generally anticipated to involve equipment or 

operational modifications that result in increased efficiency and therefore reduced fuel 

consumption and reduced GHG emissions. Specific BACT requirements for GHG emissions 

sources will be determined on a case-by-case basis and will be suited to the specific industrial 

application. An assessment of potential environmental impacts associated with the application of 

GHG BACT requirements is considered too speculative to analyze in the context of the proposed 

actions (CEQA Guidelines §15145). Also, individual GHG BACT projects will be evaluated for 

environmental impacts under CEQA at the time that a discretionary decision is made for the 

proposed project, when specific impacts can more readily be ascertained. 

In light of the above statements, District staff have concluded with certainty that there is no 

possibility the project will have a significant effect on the environment. Therefore, 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 project is not subject to any additional CEQA review 

and the District will prepare and file a Notice of Exemption in compliance with State Public 

Resources Code § 21152(b). 
ATTACHMENT 2 

RULE FINDINGS 

PROPOSED NEW RULE: 

RULE 810 (FEDERAL PREVENTION OF SIGNIFICANT 

DETERIORATION) 

and 

PROPOSED AMENDED RULES: 

RULE 102 (DEFINITIONS) 

RULE 202 (EXEMPTIONS TO RULE 201) 

RULE 370 (POTENTIAL TO EMIT ̶ LIMITATIONS 

FOR PART 70 SOURCES) 

RULE 1301 (PART 70 OPERATING PERMITS ̶ 

GENERAL INFORMATION) 

January 20, 2011 

Santa Barbara County Air Pollution Control District 

260 San Antonio Road, Suite A 

Santa Barbara, California 93110 

(805) 961-8800 
Santa Barbara County APCD 2-1 January 20, 2011 

Rule Findings – EPA GHG Tailoring Rule Project 

ATTACHMENT 2 

RULE FINDINGS FOR NEW RULE 810 (FEDERAL PREVENTION OF SIGNIFICANT 

DETERIORATION)AND AMENDED RULES 102 (DEFINITIONS), 202 (EXEMPTIONS 

TO RULE 201), 370 (POTENTIAL TO EMIT - LIMITATIONS FOR PART 70 

SOURCES), AND 1301 (PART 70 OPERATING PERMITS - GENERAL 

INFORMATION) 

Pursuant to California Health and Safety Code Section 40727, the Board makes the following 

findings for the adoption of new Rule 810 (Federal Prevention of Significant Deterioration) and 

amended Rule 102 (Definitions), Rule 202 (Exemptions to Rule 201), Rule 370 (Potential to 

Emit - Limitations for Part 70 Sources), and Rule 1301 (Part 70 Operating Permits - General 

Information). 

Necessity 

The Board determines that it is necessary to adopt new Rule 810 (Federal Prevention of 

Significant Deterioration) and amended Rule 102 (Definitions), Rule 202 (Exemptions to Rule 

201), Rule 370 (Potential to Emit - Limitations for Part 70 Sources), and Rule 1301 (Part 70 

Operating Permits - General Information) to implement the EPA Greenhouse Gas Tailoring Rule 

provisions ((40 Code of Federal Regulations, Parts 51, 52, 70, and 71). 

Authority 

The Board is authorized under state law to adopt, amend, or repeal rules and regulations 

pursuant to Health and Safety Code Section 40000, and 40725 through 40728 which assigns to 

local and regional authorities the primary responsibility for the control of air pollution from all 

sources other than exhaust emissions from motor vehicles. Additionally, pursuant to Health and 

Safety Code Section 40702, the District Board is required to adopt rules and regulations and to 

do such acts as are necessary and proper to execute the powers and duties granted to it and 

imposed upon it by State law. 

Clarity 

The Board finds that Rule 810 (Federal Prevention of Significant Deterioration), Rule 102 

(Definitions), Rule 202 (Exemptions to Rule 201), Rule 370 (Potential to Emit - Limitations for 

Part 70 Sources), and Rule 1301 (Part 70 Operating Permits - General Information) are 

sufficiently clear. The rules were publicly noticed and reviewed by the Community Advisory 

Council. The rules are written or displayed so that its meaning can be easily understood by 

persons directly affected by it. 
Santa Barbara County APCD 2-2 January 20, 2011 

Rule Findings – EPA GHG Tailoring Rule Project 

Consistency 

The Board determines that proposed Rule 810 and amended Rules 102, 202, 370, and 1301 are 

consistent with, and not in conflict with or contradictory to, existing federal or state statutes, 

court decisions, or regulations. 

The neighboring air pollution control districts include the Ventura County Air Pollution Control 

District, San Luis Obispo County Air Pollution Control District, and the San Joaquin Valley 

Unified Air Pollution Control District. All of our neighboring air pollution control districts are 

in the process of adopting similar rule requirements to those proposed in the new Rule 810 and 

amended Rules 102, 202, 370, and 1301. Based on this evidence, the Board finds that the rules 

are consistent with neighboring air pollution control districts. 

Nonduplication 

The Board finds that the proposed new Rule 810 (Federal Prevention of Significant 

Deterioration) and amended Rule 102 (Definitions), Rule 202 (Exemptions to Rule 201), Rule 

370 (Potential to Emit - Limitations for Part 70 Sources), and Rule 1301 (Part 70 Operating 

Permits - General Information) do not impose the same restrictions as any existing state or 

federal regulation, and the proposed amendments are necessary and proper to execute the powers 

and duties granted to, and imposed upon, the APCD. 

Reference 

The Board finds that we have authority under state law to adopt new Rule 810 (Federal 

Prevention of Significant Deterioration) and amend Rule 102 (Definitions), Rule 202 

(Exemptions to Rule 201), Rule 370 (Potential to Emit - Limitations for Part 70 Sources), and 

Rule 1301 (Part 70 Operating Permits - General Information) pursuant to Health and Safety 

Code Section 39002. Health and Safety Code Section 39002 assigns to local and regional 

authorities the primary responsibility for the control of air pollution from all sources other than 

exhaust emissions from motor vehicles. Additionally, pursuant to Health and Safety Code 

Section 40702, the Board is required to adopt rules and regulations and to do such acts as are 

necessary and proper to execute the powers and duties granted to it and imposed upon it by State 

law. 

Public Comment 

Response to Comments 

The Board has reviewed the responses to public comments included in Attachment 3 and hereby 

approves those responses to comments as findings. 
ATTACHMENT 3 

PUBLIC COMMENTS AND RESPONSES TO PUBLIC 

COMMENTS 

PROPOSED NEW RULE: 

RULE 810 (FEDERAL PREVENTION OF SIGNIFICANT 

DETERIORATION) 

and 

PROPOSED AMENDED RULES: 

RULE 102 (DEFINITIONS) 

RULE 202 (EXEMPTIONS TO RULE 201) 

RULE 370 (POTENTIAL TO EMIT ̶ LIMITATIONS 

FOR PART 70 SOURCES) 

RULE 1301 (PART 70 OPERATING PERMITS ̶ 

GENERAL INFORMATION) 

January 20, 2011 

Santa Barbara County Air Pollution Control District 

260 San Antonio Road, Suite A 

Santa Barbara, California 93110 

(805) 961-8800 
Santa Barbara County APCD 3-1 September 20, 2010 

Public Comments and Responses to Comments - Amended Rule 901 

ATTACHMENT 3 

PUBLIC COMMENTS AND RESPONSES TO PUBLIC COMMENTS 

Environmental Protection Agency, 

December 3, 2010 

[COMMENT 1] 

In reviewing Rules 102 and 201, it is not clear to 

EPA that either of these rules needs to be revised. In 

Rule 102, your general definition rule, you propose to 

expand the definition of major source to include 

sources with GHG emissions over the tailoring rule 

thresholds. But the only two places this new 

definition applies is in your Part 70 rules (370 and 

1301) which you are amending separately and the 

new PSD rule 810, which also contains its own major 

source definition. It seems unnecessary, and it may 

have some unintended consequences to change your 

general definition of major source to include GHGs. 

[RESPONSE TO COMMENT 1] 

The District agrees that a revised Rule 102 “Major 

Stationary Source Definition” is not necessary and 

we have removed its amendment from proposed 

amended Rule (PAR) 102. However, we believe 

other new/amended definitions are necessary to Rule 

102 as discussed below. 

 

[COMMENT 2] 

In Rule 201, it appears that the current applicability 

criteria, devices that "may cause the issuance of air 

contaminants" is sufficiently broad to cover GHG, 

and thus no change is need to this rule. Again, see 

my comment in the rule about potential unintended 

consequences. 

[RESPONSE TO COMMENT 2] 

We agree and have retracted Rule 201 amendments 

from the project. 

[COMMENT 3] 

In most of the rules, you choose to reference EPA 

regulations to cite the new GHG tailoring rule 

thresholds, but you only provided very broad citation 

levels (i.e. to the reg, but no section number). In 

addition, the term "GHG threshold" is not defined in 

the EPA regulations, like the terms "significance" or 

"major source" are defined with specific thresholds. 

Instead, the GHG permitting thresholds are somewhat 

buried in the new definition EPA added of "subject to 

regulation.” So the net effect is when a source has 

PTE emissions that meet the definition of subject to 

regulation for GHG, they are subject to PSD and/or 

Title V requirements. This definition includes the 

triggering dates and thresholds. I made a suggested 

edit to cite the EPA regulations in this manner. 

[RESPONSE TO COMMENT 3] 

The issue of providing only broad citation levels in 

the PARs no longer exists with the PAR changes and 

retraction. The citations in PAR 370 and 1301 refer 

to 40 CFR 70.2. 

The District replaced the term “greenhouse gas 

thresholds” with the EPA-recommended text, 

“subject to regulation.” 

[COMMENT 4] 

I will also note that while it is acceptable to cross 

reference to the CFR language to incorporate the 

tailoring rule thresholds into your regulations, it is 

not the preferred method, since a reader must now 

pull out a copy of the cross-referenced regulations to 

determine these values. EPA strongly encourages 

you to reconsider this approach. 

[RESPONSE TO COMMENT 4] 

The cross-referencing greatly simplifies the rule text, 

and we have retained it to avoid complexities. In 

addition, we have defined the GHG threshold levels 

to potentially impacted sources. 
Santa Barbara County APCD 3-2 January 20, 2011 

Public Comments and Responses to Public Comments – EPA GHG Tailoring Rule Project 

[COMMENT 5, REFERENCE MARKED-UP PAR 102]3

I strongly recommend putting actual numerical thresholds in your definition rule. It is always more difficult when a 

rule cross-references to another rule, especially when the citation is to something in the CFR and not your rulebook. 

If this is your preferred route, then the language I have provided provides a specific citation to the thresholds, which 

are only found within the definition of “subject to regulation.” The language you proposed is too vague and not 

enforceable as a practical matter, since 52.21 does not provide a definition of the terms GHG or threshold. I also 

suggest you use the July 1 date if you are going to send the reader to the CFR. This is the date the CFR is published 

annually, and it provides an easy way to look up what was in the CFR as of that date, versus the miscellaneous date 

of your rule adoption. 

[RESPONSE TO COMMENT 5] 

Please see the responses to items 1 and 4. (The new 40 CFR GHG Tailoring Rule provisions are effective August 2, 

2010) 

[COMMENT 6, REFERENCE MARKED-UP PAR 201]

It appears that the current language in A.1, “may cause the issuance of air contaminants”, is already sufficiently 

broad to address GHG emitting sources. As written, A.2 says that this rule only applies to a source emitting GHG 

emissions above the specified threshold. So if a source is emitting GHG emissions below this threshold, but also 

other “air contaminants”, is it subject to this rule? At a minimum, and “or” needs to be added between section 1 and 

2, but EPA suggest simply deleting A.2 and not making any revisions to this rule. 

[RESPONSE TO COMMENT 6] 

Please see the response to item 2. 

[COMMENT 7, REFERENCE MARKED-UP PAR 370]

 

3

 For brevity, the District has combined many of the subsequent comments into one. 
Santa Barbara County APCD 3-3 January 20, 2011 

Public Comments and Responses to Public Comments – EPA GHG Tailoring Rule Project 

[RESPONSE TO COMMENT 7] 

This is existing text and there are not conflicts between the definitions in Rules 370 and 1301. 

[COMMENT 8, REFERENCE MARKED-UP PAR 370]

[RESPONSE TO COMMENT 8] 

The District made the suggested addition to Section “a.” On the Section “a.1” edit the “or more” text is removed. 

For the Section “a.2” text: 

1. Staff verified with the commentor that the 40 CFR reference to 70.2 should be maintained, and 

2. The “threshold” language changed to be “subject to regulation.” 

Regarding the Section “b” addition, EPA asks, “Where specifically does EPA do this defining?” The implementing 

regulations that defines “major stationary source” are: 

1. Clean Air Act, Title III, Section 302(j), and 

2. 40 CFR 70.2 

It should be noted that this is similar to the text found in the current/existing Rule 1301 “Part 70 Source” definition 

(Rule 1301.C.2). The District is amending the Rule 370 "Major Source of Regulated Air Pollutants (excluding 

hazardous air pollutants)" definition to be consistent with the Rule 1301"Part 70 Source" definition. Hence, the 

District has left the Rule 370 definition of “Major Source of Regulated Pollutants . . .” Section “b” unchanged. 

On the “in effect” clause being in the Rule 370 Section C introduction and in the reference to fugitive emissions, our 

counsel has advised us that it is desirable to include a date of reference whenever citing a 40 CFR part or section. 
Santa Barbara County APCD 3-4 January 20, 2011 

Public Comments and Responses to Public Comments – EPA GHG Tailoring Rule Project 

[COMMENT 9, REFERENCE MARKED-UP PAR 370]

[RESPONSE TO COMMENT 9] 

The District removed the subsequent “and its implementing regulation” from PAR 370. The corresponding existing 

text in the Rule 1301 definition of “Regulated Air Pollutant” is now shown as deleted in PAR 1301 as well.

[COMMENT 10, REFERENCE MARKED-UP RULE 810] 

[RESPONSE TO COMMENT 10] 

We revised each reference to indicate “August 2, 2010,” the date the new 40 CFR GHG Tailoring Rule provisions 

become effective. 

[COMMENT 11, REFERENCE MARKED-UP RULE 810] 

[RESPONSE TO COMMENT 11] 

We’ve made the suggested addition. 

[COMMENT 12, REFERENCE MARKED-UP PAR 1301] 

[RESPONSE TO COMMENT 12] 

We’ve made the suggested revision using “August 2, 2010.” 
Santa Barbara County APCD 3-5 January 20, 2011 

Public Comments and Responses to Public Comments – EPA GHG Tailoring Rule Project 

[COMMENT 13, REFERENCE DRAFT BACKGROUND PAPER, PAGE 5] 

[RESPONSE TO COMMENT 13] 

That is true, but none of these sources are in a category listed in 40 CFR 52.21(b)(1)(i)(a). 

[COMMENT 14, REFERENCE DRAFT BACKGROUND PAPER, APPENDIX B, PAGE B-2] 

[RESPONSE TO COMMENT 14] 

The District revised the response to include a reference to the November 2010 EPA document, “PSD and Title V 

Permitting Guidance For Greenhouse Gases.”
ATTACHMENT 4 

PROPOSED NEW RULE AND AMENDED RULES 

PROPOSED NEW RULE: 

RULE 810 (FEDERAL PREVENTION OF SIGNIFICANT 

DETERIORATION) 

and 

PROPOSED AMENDED RULES: 

RULE 102 (DEFINITIONS) 

RULE 202 (EXEMPTIONS TO RULE 201) 

RULE 370 (POTENTIAL TO EMIT ̶ LIMITATIONS 

FOR PART 70 SOURCES) 

RULE 1301 (PART 70 OPERATING PERMITS ̶ 

GENERAL INFORMATION) 

January 20, 2011 

Santa Barbara County Air Pollution Control District 

260 San Antonio Road, Suite A 

Santa Barbara, California 93110 

(805) 961-8800 
Attachment 4 

Proposed Amended Rule 102 (Definitions), 

Proposed Amended Rule 202 (Exemptions to Rule 201), 

Proposed Amended Rule 370 

(Potential to Emit - Limitations for Part 70 Sources), 

Proposed New Rule 810 

(Federal Prevention of Significant Deterioration), and 

Proposed Amended Rule 1301 

(Part 70 Operating Permits - General Information) 

[Proposed new/amended rule text is provided in strikeout and underlined format. Strikeout 

indicates text proposed for deletion. Underlined text indicates proposed new text.]
[draft of December 9, 2010] 

Santa Barbara County APCD Rule 102 102 - 1 September 20, 2010[date of amended rule adoption]

 

RULE 102. DEFINITIONS. (Adopted 10/18/1971, revised 1/12/1976, readopted 10/23/1978, revised 

7/11/1989, 7/10/1990, 7/30/1991, 7/18/1996, 4/17/1997, 1/21/1999, 5/20/1999, 6/19/2003, 

1/20/2005, 6/19/2008, 1/15/2009, and 9/20/2010, and [date of amended rule adoption])

These definitions apply to the entire rulebook. Definitions specific to a given rule are defined in that rule or in the 

first rule of the relevant regulation. Except as otherwise specifically provided in these Rules where the context 

otherwise indicates, words used in these Rules are used in exactly the same sense as the same words are used in 

Division 26 of the Health and Safety Code. 

[. . . ] 

“Attainment Pollutant” means any affected pollutant which is not a nonattainment pollutant. For the 

purposes of this definition greenhouse gases are not attainment pollutants.

[. . . ] 

“Greenhouse Gas” or “Greenhouse Gases” means “Greenhouse gas” or “greenhouse gases” as defined in 

Health and Safety Code Section 38505(g).

[. . . ] 

 APPROVED AS TO FORM: 

 

 DENNIS A. MARSHALL 

 SANTA BARBARA COUNTY COUNSEL 

 By____________________________ 

 Deputy 

 Attorneys for the Santa Barbara County 

 Air Pollution Control District 
Santa Barbara County APCD Rule 202 202 - 1September 20, 2010[date of amended rule adoption]

 

RULE 202. EXEMPTIONS TO RULE 201. (Adopted 10/18/1971, revised 5/1/1972 and 6/27/1977, 

readopted 10/23/1978, revised 12/7/1987, 1/11/1988, 1/17/1989, 7/10/1990, 7/30/1991, 

11/05/1991, 3/10/1992, 5/10/1994, 6/28/1994, 4/17/1997, 3/17/2005, 1/17/2008, 6/19/2008, and 

9/20/2010, and [date of amended rule adoption])

[. . .] 

D. General Provisions

 [. . .] 

2. For the purposes of demonstrating that the emissions exempted do not exceed the aggregate 

exemption limit specified in Sections G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, or V of this Rule 

the owner or operator may base the demonstration on actual emissions provided the owner or 

operator keeps material use records in a manner approved by the Control Officer. Otherwise the 

owner or operator must maintain records that demonstrate that the potential to emit of the 

equipment will not exceed the applicable aggregate exemption emission limit. When calculating 

the actual emissions for determining whether the aggregate emission limit in this Rule is 

exceeded, greenhouse gases shall not be included.

 

 [. . .] 

 APPROVED AS TO FORM: 

 

 DENNIS A. MARSHALL 

 SANTA BARBARA COUNTY COUNSEL 

 By____________________________ 

 Deputy 

 Attorneys for the Santa Barbara County 

 Air Pollution Control District 
Santa Barbara County APCD Rule 370 370 - 1 January 18, 2001[date of amended rule adoption]

RULE 370. POTENTIAL TO EMIT – LIMITATIONS FOR PART 70 SOURCES. (Adopted 

 6/15/1995, revised 1/18/2001 and [date of amended rule adoption]) 

[. . . ] 

C. Definitions 

 All terms shall retain the definitions provided under 40 CFR Part 70.2 in effect August 2, 2010 or District 

Rule 1301, Part 70 Operating Permits - General Information, as applicable, unless otherwise defined herein. 

[. . . ] 

 "Major Source of Regulated Air Pollutants (excluding hazardous air pollutants)" means a any 

stationary source:

a. that emits or has the potential to emit a regulated air pollutant (excluding hazardous air pollutants) 

in quantities equal to or exceeding any of the following thresholds: 

a. 100 tons per year (tpy) of any regulated air pollutant, or lower threshold as applicable for the 

District under Title I, Part D of the federal Clean Air Act and its implementing regulations. 

b. For ozone nonattainment areas, sources with the potential to emit 100 tons per year or more of 

volatile organic compounds or oxides of nitrogen in areas classified as "marginal" or "moderate", 

50 tons per year or more in areas classified as "serious", 25 tons per year or more in areas 

classified as "severe", and 10 tons per year or more in areas classified as "extreme". 

1) one hundred tons per year of any pollutant, except greenhouse gases. 

2) greenhouse gases that are “subject to regulation” as defined in 40 CFR 70.2 in effect 

August 2, 2010. 

3) any lesser quantity thresholds established by Environmental Protection Agency 

rulemaking. 

b. defined by the Environmental Protection Agency as major for the District under Title I, Part D 

(Plans for Nonattainment Areas) of the Clean Air Act and its implementing regulations including: 

1) For ozone nonattainment areas, stationary sources with the potential to emit 100 tons per 

year or more of volatile organic compounds or oxides of nitrogen in areas classified as 

"marginal" or "moderate," 50 tons per year or more in areas classified as "serious," 25 

tons per year or more in areas classified as "severe," and 10 tons per year or more in areas 

classified as "extreme."

 Fugitive emissions of these pollutants shall be considered in calculating total emissions for stationary 

sources in accordance with 40 CFR Part 70.2 "Definitions- Major source(2)." in effect August 2, 2010.

 

[. . . ] 

 "Regulated Air Pollutant" means the following air pollutants as regulated under the federal Clean Air Act: 

any air pollutant (a) which is emitted into and otherwise enters the ambient air, as defined in 40 CFR 50.1 

in effect August 2, 2010, and (b) for which the Environmental Protection Agency has adopted an emission 

limit, standard or other requirement. Regulated air pollutants include: 

 a. Oxides of nitrogen and volatile organic compounds (as defined in 40 CFR 51.166 in effect August 

2, 2010); 

 b. Any pollutant for which a national ambient air quality standard has been promulgated pursuant to 

Section 109 of the Clean Air Act and its implementing regulations; 
Santa Barbara County APCD Rule 370 370 - 2 January 18, 2001[date of amended rule adoption]

c. Any Class I or Class II ozone depleting substance subject to a standard promulgated under Title 

VI of the federal Clean Air Act;

dc. Any pollutant that is subject to any standard promulgated under Section 111 (New Source 

Performance Standards) of the federal Clean Air Act and its implementing regulations;

d. Any ozone-depleting substance specified as class I or II substance pursuant to Title VI of the 

Clean Air Act and its implementing regulations; and 

 e. Any pollutant subject to a standard or requirement promulgated pursuant to under Section 112 

(Hazardous Air Pollutants) of the federal Clean Air Act and its implementing regulations, 

including: 

 1) Any pollutant listed pursuant to Section 112(r) (Prevention of Accidental Releases) of the 

Clean Air Act shall be considered a regulated air pollutant upon promulgation of the list. 

 2) Any hazardous air pollutant subject to a standard or other requirement promulgated by 

the USEPA Environmental Protection Agency pursuant to Section 112(d) of the Clean 

Air Act or adopted by the District pursuant to 112(g) and (j) of the Clean Air Act shall be 

considered a regulated air pollutant for all sources or source categories of sources: (i) 

upon promulgation of the standard or requirement, or (ii) 18 months after the standard or 

requirement was scheduled to be promulgated pursuant to Section 112(e)(3) of the Clean 

Air Act. 

 3) Any hazardous air pollutant subject to a District case-by-case emissions limitation 

determination for a new or modified source, prior to the USEPA Environmental 

Protection Agency promulgation or scheduled promulgation of an emissions limitation,

shall be considered a regulated air pollutant when the determination is made pursuant to 

Section 112(g)(2) of the Clean Air Act. In case-by-case emissions limitation 

determinations, the hazardous air pollutant shall be considered a regulated air pollutant 

only for the individual source for which the emissions limitation determination was 

made. 

f. Greenhouse gases that are “subject to regulation” as defined in 40 CFR 70.2 in effect August 2, 

2010.

[. . . ] 

E. Recordkeeping Requirements 

 Immediately after the date of adoption of this Rule, the owner or operator of a stationary source subject to 

this Rule shall comply with any applicable recordkeeping requirements in this section. However, for a 

stationary source operating under an alternative operational limit, the owner or operator shall instead 

comply with the applicable recordkeeping and reporting requirements specified in Section G, Alternative 

Operational Limit and Requirements. The recordkeeping requirements of this Rule shall not replace any 

recordkeeping requirement contained in an operating permit or in an a District, State, or Federal rule or 

regulation. 

[. . .] APPROVED AS TO FORM: 

 

 DENNIS A. MARSHALL 

 SANTA BARBARA COUNTY COUNSEL 

 By____________________________ 

 Deputy 

 Attorneys for the Santa Barbara County 

 Air Pollution Control District 
Santa Barbara County APCD Rule 810 810 - 1 [date of adoption] 

RULE 810. FEDERAL PREVENTION OF SIGNIFICANT DETERIORATION (PSD). (Adopted [date 

of adoption]) 

A. Purpose

The federal Prevention of Significant Deterioration program is a construction permitting program for new 

major stationary sources and major modifications to existing major stationary sources located in areas 

classified as attainment or in areas that are unclassifiable for any criteria air pollutant. Rule 201 (Permits 

Required) contains application requirements and Rule 204 (Applications), Rule 205 (Standards for 

Granting Applications), Rule 206 (Conditional Approval of Authority to Construct or Permit to Operate), 

Rule 207 (Denial of Applications), and Rule 208 (Action on Applications - Time Limits) contain 

processing requirements for permit actions. The purpose of this rule is to incorporate the federal 

Prevention of Significant Deterioration 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 40 Code of Federal Regulations, Part 52, Section 52.21 (40 CFR 52.21) in effect August 

2, 2010 as incorporated into this rule. 

C. Incorporation by Reference 

Except as provided below, the provisions of Title 40 CFR 52.21 in effect August 2, 2010 are incorporated 

herein by reference and made part of the Rules and Regulations of the Santa Barbara County Air Pollution 

Control District. 

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

(i)(1)(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 52.21(b) are revised as follows: 

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

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 52.21(b) are revised as follows: 

a. The term “administrator” means: 

1) “federal administrator” in 40 CFR 52.21(b)(17), (b)(37)(i), (b)(43), 

(b)(48)(ii)(c), (b)(50)(i), (b)(51), (l)(2) and (p)(2); and 
Santa Barbara County APCD Rule 810 810 - 2 [date of adoption] 

2) “Control Officer” elsewhere, as defined in Rule 102 (Definitions). 

b. The phrase “paragraph (q) of this section” in 40 CFR 52.21(p)(1) shall read as follows: 

“the public notice and comment provisions of Rule 810 Section E below.” 

D. Requirements: 

1. An owner or operator must obtain a federal Prevention of Significant Deterioration permit 

pursuant to this rule before beginning actual construction of a new major stationary source, a 

major modification, or a plantwide applicability limitation (PAL) major modification, as defined 

in 40 CFR 52.21(b). 

2. Notwithstanding the provisions of any other District Rule or Regulation, the Control Officer shall 

require compliance with this rule prior to issuing a federal Prevention of Significant Deterioration 

permit as required by Clean Air Act Section 165. 

3. The applicant shall pay the applicable fees specified in Rule 210 (Fees). 

E. Public Participation

Prior to issuing a federal Prevention of Significant Deterioration permit pursuant to this rule and after 

receipt of a complete application, the Control Officer shall: 

1. Make a preliminary determination whether construction should be approved with conditions or 

disapproved. 

2. Make available in at least one location in Santa Barbara County 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. 

3. Notify the public, by advertisement in a newspaper of general circulation in Santa Barbara County 

of the application, the preliminary determination, the degree of increment consumption that is 

expected from the source or modification, and of the opportunity for written public comment. 

4. Send a copy of the notice of public comment to the applicant, United States Environmental 

Protection Agency 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 cities in 

the County; the County Executive Officer; 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. 

5. 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 considerations, if in the Control Officer’s judgment such a hearing 

is warranted. 

6. 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 for public 

inspection in the same locations where the District made available preconstruction information 

relating to the proposed source or modification. 
Santa Barbara County APCD Rule 810 810 - 3 [date of adoption] 

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

disapproved. 

8. 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. 

 APPROVED AS TO FORM: 

 

 DENNIS A. MARSHALL 

 SANTA BARBARA COUNTY COUNSEL 

 By____________________________ 

 Deputy 

 Attorneys for the Santa Barbara County 

 Air Pollution Control District 
Santa Barbara County APCD Rule 1301 1301 - 1 June 19, 2003[date of amended rule adoption]

RULE 1301. PART 70 OPERATING PERMITS – GENERAL INFORMATION. (Adopted 11/09/1993, 

revised 8/15/1996, 9/18/1997, 1/18/2001, and 6/19/2003, and [date of amended rule adoption]) 

[. . .] 

C. Definitions

For purposes of this Rule and of Rules 1302 through 1305, the definitions listed below shall apply: 

[. . .] 

"Final Operating Permit" means a permit with District and federally enforceable conditions, that which 

has completed all review procedures required by Rule 1304, Part 70 Operating Permits ̶ Issuance, 

Renewal, Modification and Reopening, has not been disapproved by the USEPA Environmental Protection 

Agency and has been issued by the District. 

[. . .] 

"Part 70 Source" means stationary sources included in the following source categories: 

1. A stationary source with the potential to emit a regulated air pollutant or a hazardous air pollutant 

(HAP) in quantities equal to or exceeding any of the following thresholds: 

a. 100 tons/ per year of any regulated air pollutant except greenhouse gases. 

b. greenhouse gases that are “subject to regulation” as defined in 40 CFR 70.2 in effect 

August 2, 2010. 

bc. 10 tons/ per year of any individual HAPhazardous air pollutant or 25 tons/ per year of a 

combination of HAPhazardous air pollutants, or any lesser quantity thresholds for any 

HAPhazardous air pollutant established by USEPAEnvironmental Protection Agency

rulemaking. Fugitive emissions of HAPhazardous air pollutants must be counted for the 

purposes of determining applicability. However, emissions from any oil or gas 

exploration or production well (with its associated equipment) and emissions from any 

pipeline compressor or pump station shall not be aggregated with emissions from other 

similar units, whether or not such units are in a contiguous area or under common 

control, to determine whether such units are Part 70 sources. 

cd. Any lesser quantity thresholds established by USEPAEnvironmental Protection Agency

rulemaking. 

2. Any stationary source defined by the USEPAEnvironmental Protection Agency as major for the 

District under Title I, Part D (Plans for Nonattainment Areas) of the CAAClean Air Act and its 

implementing regulations including: 

a. For ozone nonattainment areas, sources with the potential to emit 100 tons per year or 

more of volatile organic compounds or oxides of nitrogen in areas classified as 

"marginal" or "moderate,", 50 tons per year or more in areas classified as "serious,", 25 

tons per year or more in areas classified as "severe,", and 10 tons per year or more in 

areas classified as "extreme.".
Santa Barbara County APCD Rule 1301 1301 - 2 June 19, 2003[date of amended rule adoption]

3. Acid rain sources included under the provisions of Title IV of the CAAClean Air Act and its 

implementing regulations. 

4. Any source required to have a preconstruction review permit pursuant to the requirements of the 

nNew sSource rReview (NSR)/or pPrevention of sSignificant dDeterioration (PSD) program 

under Title I, Parts C and D of the CAAClean Air Act and its implementing regulations. 

5. Any solid waste incineration unit required to obtain a Part 70 permit pursuant to Section 129(e) of 

the CAAClean Air Act and its implementing regulations. 

6. Any stationary source in a source category required to obtain a Part 70 permit pursuant to 

regulations promulgated by the USEPAEnvironmental Protection Agency Administrator. 

[. . .] 

"Regulated Air Pollutant" means any air pollutant (a) which is emitted into and otherwise enters the 

ambient air, as defined in 40 CFR 50.1 in effect August 2, 2010, and (b) for which the 

USEPAEnvironmental Protection Agency has adopted an emission limit, standard or other requirement. 

Regulated air pollutants include: 

1. Oxides of nitrogen (NOx); also, and volatile organic compounds (VOC) as defined in 40 CFR 

51.166 in effect August 2, 2010; 

2. Any pollutant for which a national ambient air quality standard has been promulgated pursuant to 

Section 109 of the CAAClean Air Act and its implementing regulations; 

3. Any pollutant subject to any standard promulgated under Section 111 (New Source Performance 

Standards) of the CAAClean Air Act and its implementing regulations; 

4. Any ozone-depleting substance specified as class I or II substance pursuant to Title VI of the 

CAAClean Air Act and its implementing regulations; 

5. Any pollutant subject to a standard promulgated under Section 112 (Hazardous Air Pollutants) of 

the CAAClean Air Act and its implementing regulations, including: 

a. Any pollutant listed pursuant to Section 112(r) of the CAAClean Air Act and its 

implementing regulations shall be considered a regulated air pollutant upon promulgation 

of the list. 

b. Any HAPhazardous air pollutant subject to a standard or other requirement promulgated 

by the USEPAEnvironmental Protection Agency pursuant to Section 112(d) of the 

CAAClean Air Act or adopted by the District pursuant to Sections 112(g) and 112(j) of 

the CAAClean Air Act shall be considered a regulated air pollutant for all sources or 

source categories: (a) upon promulgation of the standard or requirement, or (b) 18 months 

after the standard or requirement was scheduled to be promulgated pursuant to Section 

112(e)(3) of the CAAClean Air Act. 

c. Any HAPhazardous air pollutant subject to a District case-by-case emissions limitation 

determination for a new or modified source, prior to USEPAEnvironmental Protection 

Agency promulgation or scheduled promulgation of an emissions limitation, shall be 

considered a regulated air pollutant when the determination is made pursuant to Section 

112(g)(2) of the CAAClean Air Act and its implementing regulations. In case-by-case 

emissions limitation determinations, the HAPhazardous air pollutant shall be considered 

a regulated air pollutant only for the individual source for which the emission limitation 

determination was made. 
Santa Barbara County APCD Rule 1301 1301 - 3 June 19, 2003[date of amended rule adoption]

6. Greenhouse gases that are “subject to regulation” as defined in 40 CFR 70.2 in effect August 2, 

2010. 

[. . .] 

 APPROVED AS TO FORM: 

 

 DENNIS A. MARSHALL 

 SANTA BARBARA COUNTY COUNSEL 

 By____________________________ 

 Deputy 

 Attorneys for the Santa Barbara County 

 Air Pollution Control District 

 
ATTACHMENT 5 

STAFF REPORT 

PROPOSED NEW RULE: 

RULE 810 (FEDERAL PREVENTION OF SIGNIFICANT 

DETERIORATION) 

and 

PROPOSED AMENDED RULES: 

RULE 102 (DEFINITIONS) 

RULE 202 (EXEMPTIONS TO RULE 201) 

RULE 370 (POTENTIAL TO EMIT ̶ LIMITATIONS 

FOR PART 70 SOURCES) 

RULE 1301 (PART 70 OPERATING PERMITS ̶ 

GENERAL INFORMATION) 

January 20, 2011 

Santa Barbara County Air Pollution Control District 

260 San Antonio Road, Suite A 

Santa Barbara, California 93110 

(805) 961-8800 
Santa Barbara County Air Pollution Control District 

STAFF REPORT – January 20, 2011 

NEW RULE AND AMENDED RULES TO 

IMPLEMENT EPA’S FEDERAL PREVENTION OF SIGNIFICANT DETERIORATION AND PART 70 

GREENHOUSE GAS TAILORING RULE 

Rules 102, 202, 370, 810, and 1301

 

BACKGROUND 

The Santa Barbara County Air Pollution Control 

District (District) proposes new/amended rules to 

implement the United States Environmental 

Protection Agency’s (EPA’s) requirements on 

greenhouse gases.a

 Rulemaking is needed to provide 

the regulated industry relief from applying “criteria” 

pollutant emission thresholds to greenhouse gas 

(GHG) emissions. This rule action will implement 

the EPA emission thresholds for GHGs, which are 

higher than those for "criteria" air pollutants. 

“Criteria” pollutants include oxides of nitrogen, 

reactive organic compounds, particulate matter, 

oxides of sulfur, and carbon monoxide, but not 

GHGs. 

On April 2, 2007, the U.S. Supreme Court found that 

GHGs are air pollutants covered by the federal Clean 

Air Act (CAA). The U.S. Supreme Court also found 

that EPA was required to determine whether or not 

emissions of GHGs from new motor vehicles cause 

or contribute to air pollution that may reasonably be 

anticipated to endanger public health or welfare. 

On December 15, 2009, EPA’s Administrator made 

the finding that six key GHGs in the atmosphere 

threaten the public health and welfare of current and 

future generations. EPA’s Administrator also found 

that the combined emissions of these well-mixed 

gases from new motor vehicle engines contribute to 

the greenhouse gas pollution which threatens public 

health and welfare. By determining that GHG 

emissions from mobile sources contribute or cause air 

pollution that endanger public health or welfare, EPA 

also established that it is required to regulate GHG 

emissions from stationary sources. 

On May 13, 2010, EPA issued regulations under the 

CAA to require permitting of larger stationary 

sources of greenhouse gases. These regulations 

 

a

 “Title V” in the EPA rule title refers to the federal 

permit program of the Clean Air Act (CAA or Act). 

The District implements Title V through local 

Regulation XIII, Part 70 Operating Permits. Part 70 

refers to the 40 CFR section that implements Title V. 

This Background Paper uses the term “Part 70” in 

lieu of “Title V,” for consistencies with terminology 

in the local rules. 

trigger CAA permitting requirements under the 

federal Prevention of Signification Deterioration 

(PSD) and Operating Permit (Part 70) programs for 

GHG emissions. Because GHG emissions from most 

sources generally exceed existing levels of 

significance for criteria pollutants, EPA "tailored" 

their regulations for when they included greenhouse 

gases. Without this tailoring, GHGs would be 

subject to the same permit thresholds as “criteria” air 

pollutants. The federal PSD and Part 70 permitting 

levels for non-GHG pollutants are: 

 PSD Permitting: 250 or 100 tonsb

 per year (tpy) 

(depending on the source type), and 

 Part 70 Permitting: 100 tpy. 

These thresholds are based on a source’s potential to 

emit and are on a per pollutant basis. Sources above 

these levels are considered major sources. 

Treating GHGs as “criteria” air pollutants would 

greatly increase the number of permitted small 

sources.[Ref. 1 & 2] To provide an alternative, EPA 

adopted a “Prevention of Significant Deterioration 

and Part 70 Greenhouse Gas Tailoring Rule” 

(Tailoring Rule). This rule, which became final on 

May 13, 2010 [Ref. 3], establishes thresholds for 

permitting in two steps: 

A. Step 1 - Beginning January 2, 2011: This step 

applies to stationary sources that are major due 

to their non-GHG pollutant emission rates. The 

following provisions will apply: 

PSD: For new major sources (of non-GHG 

gases), permits will be required to address GHG 

Best Available Control Technology (BACT) if 

they will emit or will have the potential to emit 

75,000 tpy carbon dioxide equivalent (CO2e) or 

more.c

 

 

b

 One ton equals 2,000 pounds. 

c

 Carbon dioxide equivalent is described in item 3 of 

Appendix B. Click here to go to that description. 
STAFF REPORT - Tailoring Rules Project Page 2 

January 20, 2011 

Santa Barbara County APCD 

For existing major sources, permits will be 

required to address GHG Best Available Control 

Technology [BACT]) if they: 

1. Increase net GHG emissions by at least 

75,000 tons per year tpy of carbon dioxide 

equivalent (CO2e), and 

2. Have a significant net emissions increase in 

at least one non-GHG pollutant.a

Part 70 Sources: Sources must include GHG 

emission data in their applications and address 

any applicable GHG requirements when they 

apply for, renew, or revise their permits. 

B. Step 2 - Beginning July 1, 2011:b

 Sources not 

already subject to federal PSD or Part 70 

permitting may become subject to such 

permitting based solely on their GHG emissions. 

The following provisions will apply: 

PSD: New sources with PTE emissions above 

the 100,000 tpy CO2e threshold must obtain PSD 

permits and address GHG BACT. 

Existing sources that are major sources based on 

criteria pollutant thresholds or GHG emissions 

above 100,000 tpy CO2e will now become 

subject to PSD permitting if they undertake 

modifications that increase emissions of GHGs 

by at least 75,000 tpy CO2e or have a significant 

emissions increase in at least one non-GHG 

pollutant. 

Part 70: An existing or newly constructed 

source will become subject to Part 70 permitting 

if GHGs equal or exceed the 100,000 tpy CO2e 

(potential to emit) threshold. Such sources have 

one year to submit a Part 70 application. The 

Part 70 permits must include any applicable 

GHG requirements. 

EPA has committed to developing a Tailoring Rule 

Step 3 (effective July 1, 2013). In Step 3, additional 

sources may become subject to PSD and Part 70 

requirements if GHGs thresholds are lowered. 

 

a

 40 CFR 52.21(b)(49)(iii) provides information on 

“significant emissions increase.” 

b

 Sources subject to the Step 1 provisions will 

continue to be covered by those requirements. 

To implement the EPA Tailoring Rule requirements, 

the District proposes amendments to four rules and 

the adoption of one new rule: 

1. Amended Rule 102, Definitions, 

2. Amended Rule 202, Exemptions to Rule 201 

3. Amended Rule 370, Potential to Emit ̶ 

Limitations for Part 70 Sources 

4. New Rule 810, Federal Prevention of Significant 

Deterioration (PSD) 

5. Amended Rule 1301, Part 70 Operating Permits ̶ 

General Information 

The proposed new and amended rules include 

changes to incorporate the GHG applicability 

thresholds and the two step phase in requirement. 

Additions and amendments include: 

a. A new "greenhouse gases" definition in Rule 

102; 

b. References in several rules to federal 

provisions that specify when stationary 

sources of GHGs emissions are “subject to 

regulation”; 

c. Amended definitions for terms like 

attainment pollutant, major stationary 

source, and Part 70 Source; and 

d. An amendment to Rule 202.D.2 to exclude 

GHGs when calculating aggregate threshold 

emissions. 

It is important to note that mainly existing Part 70 

permit sources in Santa Barbara County will be 

required to comply with GHG permitting 

requirements at this time. Most permit holders in the 

district will not be impacted by these new 

requirements. We only anticipate up to two 

additional stationary source permits that may become 

subject to Part 70 permits during Step 2. 

The Tailoring Rule provisions benefit the regulated 

community by increasing the GHG emission 

threshold that would otherwise trigger PSD or a Part 

70 permit. For example, without the Tailoring Rule 

provisions, a source with a mid-size natural-gas fired 

commercial water heater rated at 0.2 MMBtu/hour 

would require a Part 70 permit. Under the Tailoring 

Rule provisions, a source consisting of one boiler will 

not trigger the Part 70 provisions unless the boiler is 

197 MMBtu/hour or greater.c

 

 

 

c

 Based on the boiler’s CO2e emissions alone. 
STAFF REPORT - Tailoring Rules Project Page 3 

January 20, 2011 

Santa Barbara County APCD 

PROPOSED RULES 

The proposed rules are contained in Attachment 4 of 

the “EPA GHG Tailoring Rule Project” Board 

Package. The following summarize the 

new/amended rule provisions. 

Rule 102, Definitions 

The District proposes a new “Greenhouse Gas” or 

“Greenhouse Gases” definition that refers to the 

state definition. In addition, the definition of 

attainment pollutant has been clarified to exclude 

GHG. 

Rule 202, Exemptions to Rule 201

Rule 202.D.2 includes a change to ensure existing 

permit exemptions will continue to apply to sources 

of GHGs. 

Rule 370, Potential to Emit ̶

Limitations for Part 70 Sources 

Rule 370 provides for sources to be exempt from 

Rule 1303, Part 70 Permits ̶ Permits based on actual 

emission levels. Exemptions may apply if actual 

stationary source emissions are maintained less than 

50% of a Part 70 threshold, as demonstrated by 12 

months of records consistent with the rule 

requirements. 

Definitions in Rule 370 are amended for consistency 

purposes and to reference the federal GHG permitting 

thresholds (i.e., the levels at which GHGs are 

“subject to regulation”) specified in the Greenhouse 

Gas Tailoring Rule. The Rule 370 amendments also 

incorporate the federal definition of GHGs, found in 

the Part 70 (Title V) regulation (40 CFR 70.2). 

Rule 810, Prevention of Significant 

Deterioration (PSD) 

Proposed new Rule 810 will incorporate by reference 

the federal Prevention of Significant Deterioration of 

Air Quality rule requirements. Once approved, the 

District will request EPA to incorporate it into the 

State Implementation Plan. 

Proposed Rule 810 is an EPA-approved model rule. 

If adopted exactly as proposed, EPA will accept the 

rule. 

The District has an existing PSD rule: Rule 803, 

Prevention of Significant Deterioration (PSD). On 

March 3, 2003, EPA revoked the District’s PSD 

delegation authority. The District is retaining Rule 

803 as a locally enforceable rule. This is consistent 

with Senate Bill 288 anti-backsliding provisions and 

the California Health and Safety Code, Section 

42504(a). Rule 803 was adopted before December 

30, 2002 and Section 42504(a) does not allow the 

District to make the rule less stringent. For these 

reasons, Rule 803 will continue to be a local PSD 

rule and Rule 810 will be the federal PSD rule. 

 

Rule 1301, Part 70 Operating Permits ̶

General Information 

 

Similar to the changes made to Rule 370, definitions 

in Rule 1301 are amended for consistency purposes 

and to reference the federal GHG permitting 

thresholds (i.e., the levels at which GHGs are 

“subject to regulation”) specified in the Greenhouse 

Gas Tailoring Rule. The Rule 1301 amendments also 

incorporate the federal definition of GHGs, found in 

the Part 70 (Title V) regulation (40 CFR 70.2). 

Appendix A, Clarification of Rule Issues, provides 

additional information the implementation of the 

EPA Greenhouse Gas Tailoring Rule provisions. 
STAFF REPORT - Tailoring Rules Project Page 4 

January 20, 2011 

Santa Barbara County APCD 

EMISSION REDUCTION / COST-EFFECTIVENESS 

Emission Reductions 

The new and proposed amended rules 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 new/amended rules are 

not implementing a control measure or retrofit 

control requirements. Further, there are no 

emission reductions anticipated from them. 

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 

Comments 

Attachment 3 to the “EPA GHG Tailoring Rule 

Project” Board Package contains written public 

comments received before December 29, 2010. This 

attachment also contains the APCD’s responses to the 

comments. Written comments received between 

December 29, 2010 and January 20, 2011, will be 

provided to Board with the District’s response during 

the January 20, 2011 Board Hearing. 

Public Meetings 

STAKEHOLDERS MEETINGS 

The District met individually with representatives of 

sources that are anticipated to require Part 70 permits 

for the first time due to the rule action. Table 2 in the 

“Impacts to Industry and the District” section of this 

Staff Report provides a list of these sources. 

COMMUNITY ADVISORY COUNCIL MEETING, 

(DECEMBER 8, 2010) 

Staff briefed the CAC on: 

1. the EPA Tailoring Rule requirements, and 

2. on how the new/amended rules will implement 

them. 

The Community Advisory Council passed a motion 

to recommend that the Board approve the proposed 

amended rules and new Rule 810 dated December 8, 

2010. 

PUBLIC HEARING ON THE ADOPTION OF THE 

PROPOSED AMENDED RULES, (JANUARY 20, 

2011) 

The Board is scheduled to consider the adoption of 

the new/amended rules at the January 20, 2011 Public 

Hearing. 
STAFF REPORT - Tailoring Rules Project Page 5 

January 20, 2011 

Santa Barbara County APCD 

COMPARISON OF ADJOINING AIR POLLUTION CONTROL DISTRICT RULES 

The adjoining air districts are in the progress of adopting similar rule provisions to implement the EPA Tailoring 

Rule requirements. 

IMPACTS TO INDUSTRY AND THE DISTRICT 

Step 1 of the Tailoring Rule will only have a minor impact on existing Part 70 source permit holders. Table 1 

identifies the sources that currently have Part 70 permits and will need to comply with Step 1 of the Tailoring Rule. 

In addition Table 1 lists EPA major sources that could possibly trigger PSD requirements for GHG in the future. 

Table 1. EXISTING SOURCES EPA MAJOR SOURCES (250 tpy or Greater) 

AND/OR PART 70 PERMIT SOURCES 

Stationary 

Source 

Stationary Source Name EPA Major 

Source 

(250 tpy) 

Part 

70 

02667 BreitBurn Energy- Orcutt Hill 1 1 

01735 Celite Corporation 1 1 

08713 City of Santa Maria Landfill 1 

03707 County of SB-Tajiguas Landfill 1 

08003 Dos Cuadras - South County 1 

01073 E & B - South Cuyama 1 1 

01482 ExxonMobil - SYU Project 1 1 

02658 Greka South Cat Canyon 1 1 

08001 Pacific Operators - Carpinteria 1 

04632 Pt. Pedernales/Lompoc Oil Fields 1 

05019 So Cal Gas - La Goleta 1 1 

01325 The Point Arguello Project 1 1 

00027 Venoco - Carpinteria 1 1 

01063 Venoco - Ellwood 1 

10344 Wm. Bolthouse Farms 1 1 

 TOTALS 9 15 

Table 2 identifies the sources with CO2e of 100,000 tons per year and greater. These sources will be subject to Part 

70 permitting requirements under the Tailoring Rule Step 2. If a qualifying modification is made to these sources, 

they will also be subject to federal PSD permitting requirements. 
STAFF REPORT - Tailoring Rules Project Page 6 

January 20, 2011 

Santa Barbara County APCD 

Table 2. EXISTING SOURCES THAT MAY BECOME SUBJECT TO 

THE PART 70 PERMITTING REQUIREMENTS 

Stationary 

Source 

Stationary Source Name 

02795 UCSB 

01195 Vandenberg Air Force Base 

According to the EPA Overview of Part 70 [Ref. 1 & 2]: 

A source generally must apply for a Part 70 permit within 1 year of first becoming subject to permitting - 

for new sources; this is usually within one year of commencing operation. The application must include, 

among other things, identifying information, a description of emissions and other information necessary to 

determine applicability of requirements and information concerning compliance with those requirements. 

The permitting authority uses this information to develop the source’s operating permit. [. . .] 

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. 

2. Federal Regulation citation: 75 FR 31514, June 

3, 2010. 

3. Fact Sheet, Final Rule: Prevention of 

Significant Deterioration and Title V 

Greenhouse Gas Tailoring Rule, U.S. 

Environmental Protection Agency, April 13, 

2010. (Available at: 

http://www.epa.gov/nsr/actions.html#may10) 

APPENDIX 

Appendix A: Clarification of Rule Issues
STAFF REPORT - Tailoring Rules Project Page A-1 

January 20, 2011 

Santa Barbara County APCD 

Appendix A 

Santa Barbara County 

Clarification of Rule Issues 

The following text provides clarification of rule issues. To help the reader locate a specific issue, a table of contents 

is provided below. 

Table 1. TABLE OF CONTENTS FOR THE CLARIFICATION OF RULE ISSUES 

Rule Section or 40 

CFR Part 

Topic Page 

40 CFR 52.21 and 70 Request to Clarify PSD and Part 70 Requirements under Step 2 of the 

Tailoring Rule 

B-1

40 CFR 52.21 and 70 Availability of a Guidance Document on How PSD and Part 70 GHG 

Requirements Apply for the Two Phases 

B-2

40 CFR 

51.166(b)(48)(ii), 

52.21(b)(49)(ii), and 

70.2 

Meaning of the “Carbon Dioxide Equivalent” or “CO2e” term and a 

description of how it is calculated 

B-3

40 CFR 52.21 and 70 

Request to Clarify PSD and Part 70 Requirements under Step 2 of the Tailoring Rule

Questions/Issues: The following is based on information in an EPA fact sheet: 

 Step 2 will build on Step 1. In this phase, PSD permitting requirements will cover for the first time 

new construction projects that emit GHG emissions of at least 100,000 tpy even if they do not exceed 

the permitting thresholds for any other pollutant. Modifications at existing major sources that increase 

GHG emissions by at least 75,000 tpy will be subject to permitting requirements, even if they do not 

significantly increase emissions of any other pollutant.

 based on their GHG emissions even if they would not apply based on emissions of any other pollutant. 

Facilities that emit at least 100,000 tpy CO2e will be subject to Part 70 permitting requirements.

1. Regarding the first bullet, if a new major source or a major modification results based on GHG emissions 

only, does the PSD analysis have to consider BACT and an Air Quality Impact Analysis (AQIA) for all 

pollutants, or solely GHG? 

2. Regarding the second bullet, if GHG emissions alone cause a source to become a Part 70 source, we 

presume the permit has to address all applicable requirements in the Part 70 permit, and not just applicable 

requirements for GHG. Correct? 

Answer/Response: Yes for a given project where the only significant increase in emissions is for GHG (not any 

other PSD pollutant, such as NOx at 40 tpy), then a BACT analysis is only required for GHG. No AQIA is 

required for GHG, since there is no National Ambient Air Quality Standard for GHG. In general, the PSD 

requirements apply to any pollutant for which a significant increase occurs, even if the source is not major for 

that particular pollutant, as long as they are major for at least one PSD pollutant. 

For the second question, you are correct. Once the requirement to obtain a Part 70 permit is triggered, because 

the source is a major source of GHGs, then just like any other Part 70 permit, it must identify all applicable 

requirements and include them in the Part 70 permit. 

Click here to return to the Table of Contents. 
STAFF REPORT - Tailoring Rules Project Page A-2 

January 20, 2011 

Santa Barbara County APCD 

Availability of a Guidance Document on How the PSD and Part 70 GHG Requirements Apply for the Two Phases

Questions/Issues: Is there a guidance document on how the PSD and Part 70 GHG requirements apply for 

the two phases? We think it may be a useful to have such a document to facilitate the explanation on how 

the different provisions are triggered and at what thresholds.

Answer/Response: The EPA Greenhouse Gas Tailoring Rule Federal Register (75 FR 31514, June 3, 2010) 

includes general information and an overview of the requirements. Also, the EPA document, “PSD and 

Title V Permitting Guidance For Greenhouse Gases,” November 2010, provides information on the 

permitting procedures. This document is available from this web page: 

http://www.epa.gov/nsr/guidance.html. The following summary tables and information are provided to 

help clarify the major EPA Tailoring Rule requirements. 

TYPE STEP 1: 01/02/2011 - 06/30/2011 STEP 2: 07/01/2011 - 06/30/2013 

Part 70 

 Covers Existing Part 70 Sources All sources ≥ 100,000 tpy CO2e, 

including new construction 

projects. 

PSD 

 Covers Existing EPA Major Source 

(250 tpy or greater) Sources with 

modifications that result in 

emission increases ≥ 75,000 tpy 

CO2e 

New construction projects with ≥

100,000 tpy CO2e 

Modifications at existing major 

source facilities with increase of ≥

75,000 tpy CO2e 

Note: The 75,000 tpy and 100,000 tpy figures are in terms of potential to emit (not actuals). 
STAFF REPORT - Tailoring Rules Project Page A-3 

January 20, 2011 

Santa Barbara County APCD 

The following clarifying information is based on correspondence from EPA staff: 

It should be noted that for Part 70, there are only two things that changes come January 2, 2011. First, all 

new Part 70 applications must include sufficient GHG emission data in their application so that the District 

can determine if any GHG requirements apply. Second, for now, the only GHG applicable requirement are 

PSD permit terms and conditions related to GHGs. So, unless a source has a pending PSD permit action 

that will address GHGs, nothing will change for an existing Part 70 source. Come July 1, 2011, nothing 

changes for existing Part 70 sources, but if an existing or new source is now classified as a major source 

because of their GHG emissions, then they have 12 months to submit a complete Part 70 application. For 

the PSD program, if a source that needs a federal PSD permit does not obtain it before January 2, 2011, 

then the PSD permit must also evaluate GHGs. If it would only need a PSD permit because of GHGs, it 

must either begin actual construction prior to July 1, 2011, or obtain a PSD permit. 

Note: It is our understanding that the above statement, “For the PSD program, if a source that needs a federal PSD 

permit does not obtain it before January 2, 2011, then the PSD permit must also evaluate GHGs,” means: 

1. The existing major source requires a revised federal PSD permit because of an increase in emissions of a 

pollutant other than GHGs, 

2. “Evaluate GHG” refers to calculating and verifying whether any GHG emission increases, based on 

potential to emit, are also subject to PSD requirements during the federal PSD permit process, and 

3. The source will be subject to the PSD GHG BACT requirement if the GHGs have the potential to emit 

75,000 tpy CO2e or more unless the source accepts a synthetic minor limit in their PSD permit to limit their 

PTE below the 75K tpy CO2e threshold. 

40 CFR 51.166(b)(48)(ii), 52.21(b)(49)(ii), and 70.2 

Meaning of the “Carbon Dioxide Equivalent” or “CO2e” term and a description of how it is calculated 

Questions/Issues: What does the term carbon dioxide equivalent or CO2e mean and how is it calculated? 

Answer/Response: This term is defined in various new 40 CFR subparts as follows: 
STAFF REPORT - Tailoring Rules Project Page A-4 

January 20, 2011 

Santa Barbara County APCD 

1. 40 CFR Part 51.166(b)(48)(ii) and Part 52.21(b)(49)(ii): [. . .] the term tpy CO2 equivalent emissions 

(CO2e) shall represent an amount of GHGs emitted, and shall be computed as follows: 

(a) 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. 

(b) Sum the resultant value from paragraph (b)(48)(ii)(a) of this section for each gas to compute a tpy 

CO2e. 

2. 40 CFR Part 70.2: The term tpy CO2 equivalent emissions (CO2e) shall represent an amount of GHGs 

emitted, and shall be computed by 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, and summing the resultant 

value for each to compute a tpy CO2e. 

Click here to return to the Table of Contents. 

Click here to return to the list of Appendices in the Staff Report.