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 testim ony on proposed new Rule 810 (Federal Prevention of Significant Deterioration) and propos ed 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 Bo ard Letter. Approval of the Resolution will result in the following actions:

1. CEQA Findings: Adopt the CEQA Findings (Att achment 1) pursuant to the California Environmental Quality Act (C EQA) 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, authorit y, clarity, consistency, nonduplica tion, and reference. The Rule Findings also acknowledge public comments on the proposed new rule and amended rules and adopt the responses to publ ic comments as findings of the Board (See Attachment 3).

3. Rule Adoption and Amendments: Adopt pr oposed 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 existi ng levels of significance for criteria pollutants, EPA "tailored" their regulations when they incl uded greenhouse gases. Collectively, the amended regulations are referred to as EPA Greenhouse Gas Tailoring Rule.

The Santa Barbara County Air Pollution Control Di strict (District) propos es one new rule and amendments to four existing rules to implement EPA Greenhouse Gas Tailoring Rule provisions. Adoption of District rules to implement these EP A provisions will benefit the regulated community by increasing greenhouse gas emission trigger levels for:

1. Prevention of Significant De terioration 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 deve lopment process for this project.

DISCUSSION:

Objectives:

To implement EPA Greenhouse Gas Tailoring Rule requ irements 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 th e 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 ap plied to “criteria” air pollutants, their precursors, hazardous air pollutants, and toxic air contaminants. “Criteri a” pollutants include ozon e, 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 Deterior ation (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 Dist rict 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 Di strict 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 Di strict 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 fe deral 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 impl ementing requirements on greenhouse gases in phases. The in itial 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 fo r, renew, or revise their permits.

In a later phase, which starts on July 1, 2011, sour ces 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 car bon dioxide equivalent emission thresholds for triggering requirements are sign ificantly high (e.g., 75,000 tons pe r 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 equivale nt 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 tec hniques. Hence, there are no emission reductions or cost-effectiveness figures associ ated 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 p ublished a public notice of the Board Hearing to adopt the proposed new rule and th e 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 re laxation of air pollution control requirements in general, or in the relaxation of air polluti on control standards that apply to any specific existing facilities (o r 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 e ffect 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 a nd 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 th e 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, Ne w Rule 810, Federal Prevention of Significant Deterioration (PSD), a nd 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) 961-8800Santa Barbara County APCD Resolution – EPA GHG Tailoring Rule Project - 1 - January 20, 2011 

## RESOLUTION OF TH E 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 repe al rules and regulations pursuant to Health and

Safety Code section 40725 et seq

.

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

adopt and enforce rules and regula tions to achieve and maintain th e 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 Deterior ation) , 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 th e United States Environmental Protection Agency

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

provisions (40 Code of Federal Re gulations, 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 a ccepted 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 Janu ary 20, 2011 (herein after “Board Package”) are

hereby adopted as findings of this Boar d 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 pursu ant to Health and Sa fety 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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//

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//Santa Barbara County APCD Resolution – EPA GHG Tailoring Rule Project - 3 - January 20, 2011 

### 6) The Board authorizes the Contro l 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 Ca lifornia, 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) 961-8800Santa 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 Ba rbara County Air Pollution Control District (District), as Lead Agency, re viewed the adoption of proposed Rule 810 (Federal Prevention of Significant Deterioration) and proposed amende d 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 impact s 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 Guide lines, 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 whethe r 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 expr essed in Section 15061(b)(3), that, “... CEQA applies only to projects which have the potential for causing a si gnificant effect on the environment. Where it can be seen with certainty that there is no possi bility 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 Agen cy 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 refere nce 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 Implementati on Plan (SIP) for national primary ambient air quality standards. The Distri ct has an existing Prevention of Significant Deterioration (PSD) rule: Rule 803, Prevention of Significant Deterior ation (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 cha nges. 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 sour ces 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 defini tion of GHGs, found in the Part 70 (Title V) regulation (40 CFR 70.2).

The Greenhouse Gas Tailoring Rule provisions re gulate GHG emissions when a new stationary source is built or an existing sour ce 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 expa nded. A source that underg oes analysis under the federal PSD permit program may need to inco rporate Best Available Control Technology (BACT) for their GHG emissions.

When required, BACT for GHG emissions is gene rally anticipated to involve equipment or operational modifications that result in increas ed efficiency and therefore reduced fuel consumption and reduced GHG emissions. Sp ecific 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 environmen tal impacts associated w ith the application of GHG BACT requirements is considered too speculati ve to analyze in the context of the proposed actions (CEQA Guidelines §15145). Also, indivi dual GHG BACT projects will be evaluated for environmental impacts under CEQA at the time th at a discretionary decision is made for the proposed project, when specific impact s can more readily be ascertained.

In light of the above statements, District staff have concluded with certa inty 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) 961-8800Santa Barbara County APCD 2-1 January 20, 2011 Rule Findings – EPA GHG Tailoring Rule Project 

### ATTACHMENT 2

RULE FINDINGS FOR NEW RULE 810 (FEDER AL PREVENTION OF SIGNIFICANT DETERIORATION)AND AMEN DED RULES 102 (DEFINITIONS), 202 (EXEMPTIONS TO RULE 201), 370 (POTENTIAL TO EM IT - LIMITATIONS FOR PART 70 SOURCES), AND 1301 (PART 70 OPERATING PERMITS - GENERAL INFORMATION)

Pursuant to California Health and Safety C ode Section 40727, the Board makes the following findings for the adoption of new Rule 810 (Federal Prevention of Significan t Deterioration) and amended Rule 102 (Definitions), Rule 202 (Exemptions to Rule 201), Rule 370 (Potential to Emit - Limitations for Part 70 Sources), and Ru le 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 Regu lations, Parts 51, 52, 70, and 71).

Authority

The Board is authorized under state law to a dopt, amend, or repeal rules and regulations pursuant to Health and Safety Code Sec tion 40000, and 40725 through 40728 which assigns to local and regional authorities the primary responsibility for the cont rol 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 ex ecute the powers and duties granted to it and imposed upon it by State law.

Clarity

The Board finds that Rule 810 (Federal Prev ention of Significant De terioration), Rule 102 (Definitions), Rule 202 (Exemptions to Rule 201), Rule 370 (Potential to Emit - Limitations for Part 70 Sources), and Rule 1301 (Part 70 Opera ting 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 mean ing 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 cont radictory to, existing fede ral or state statutes, court decisions, or regulations.

The neighboring air pollution cont rol 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 require ments 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 Ru le 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 unde r 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 In formation) 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 contro l 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 requir ed to adopt rules and regulati ons and to do such acts as are necessary and proper to execute the powers a nd 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 ar e 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 prov ide 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 la nguage in A.1, “may cause the issuance of air contaminants”, is already sufficiently broad to address GHG emitting sources. As written, A.2 sa ys 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 doe s 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 implemen ting regulation” from PAR 370. The corresponding existing text in the Rule 1301 definition of “Regulated Air Po llutant” 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 BACKGROU ND PAPER, APPENDIX B, PAGE B-2]

[RESPONSE TO COMMENT 14]

The District revised the response to include a refere nce 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 (E xemptions to Rule 201),

Proposed Amended Rule 370 (Potential to Emit - Limitation s for Part 70 Sources),

Proposed New Rule 810 (Federal Prevention of Sign ificant 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. Unde rlined 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 sp ecific to a given rule are defined in that rule or in the first rule of the relevant regulation. Except as otherw ise 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 - 1 September 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 S ections 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 gase s 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 DistrictSanta 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 federa l 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 regul ation” 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 otherwis e 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 su bject 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 Accident al 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 pollu tant 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 sh all be considered a regulated air pollutant only for the individual source for which the emissions limitation determination was

made.

f. Greenhouse gases that are “subj ect 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 oper ational limit, the owner or operator shall instead comply with the applicable recordk eeping and reporting requirements sp ecified in Section G, Alternative Operational Limit and Requirements. The recordkeep ing 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 DistrictSanta Barbara County APCD Rule 810 810 - 1 [ date of adoption ] RULE 810. FEDERAL PREVENTION OF SIGNIFICANT DETERIORAT ION (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 unclassifi able 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 pu rpose 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” containe d 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” contai ned 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); andSanta 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 issuin g a federal Prevention of Significant Deterioration permit as required by Clean Air Act Section 165.

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

E. Public Participation

Prior to issuing a federal Prevention of Significant De terioration permit pursuant to this rule and after receipt of a complete applica tion, 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 Sa nta 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 comp rehensive 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 fo r 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 submit ted 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 DistrictSanta 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 po tential to emit a regulated air pollu tant 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 regul ation” 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 pollutant s, or any lesser quantity thresholds for any HAPhazardous air pollutant established by USEPAEnvironmental Protection Agency rulemaking. Fugitive emissions of HAPhazardous air pollutant s must be counted for the purposes of determining applicability. Ho wever, 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 (Pla ns 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 oxid es 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

nN ew sS ource rR eview (NSR)/or pP revention of sS ignificant dD eterioration (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 schedul ed to be promulgated pursuant to Section 112(e)(3) of the CAAClean Air Act

.

c. Any HAPhazardous air pollutant subject to a District cas e-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 indivi dual 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) 961-8800Santa Barbara County Air Pollution Control District STAFF REPORT – January 20, 2011

NEW RULE AND AMENDED RULES TO

IMPLEMENT EPA’S FEDERAL PREVENTION OF SIGNIFICANT DETERIORAT ION 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 tons b 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 pr ovide 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 (CO 2 e) 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 (CO 2 e), 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 CO 2 e 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 CO 2 e will now become subject to PSD permitting if they undertake

modifications that increase emissions of GHGs by at least 75,000 tpy CO 2 e 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 CO 2 e (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 th resholds are lowered.

a 40 CFR 52.21(b)(49)(iii) provides information on “significant emi ssions 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 ame ndments 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 CO 2 e emissions alone.STAFF REPORT - Tailoring Rules Project Page 3 January 20, 2011

Santa Barbara County APCD PROPOSED RULES

The proposed rules are cont ained 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 le vels at which GHGs are “subject to regulation”) sp ecified 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 le vels at which GHGs are “subject to regulation”) sp ecified in the Greenhouse Gas Tailoring Rule. The Ru le 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-effec tiveness 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 FEDERA L AND DISTRICT REGULATIONS

H&SC Section 40727.2(a) requires districts to provide a wr itten 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 S ection 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 Ja nuary 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 adoptin g 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 a nd will need to comply with Step 1 of the Tailoring Rule. In addition Table 1 lists EPA major sources that could poss ibly trigger PSD requirements for GHG in the future.

Table 1. EXISTING SOURCES EPA MA JOR 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 Operator s - 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 CO 2 e 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 IssuesSTAFF 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 “CO 2 e” 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 base d 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 requirem ents 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 significan t increase occurs, even if th e 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 CO 2 e, 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

CO 2 e New construction projects with ≥ 100,000 tpy CO 2 e

Modifications at existing major

source facilities with increase of ≥ 75,000 tpy CO 2 e

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 ba sed 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 exis ting Part 70 source. Come July 1, 2011, nothing changes for existing Part 70 sources, but if an existin g or new source is now classified as a major source because of their GHG emissions, then they have 12 months to submit a co mplete 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 sour ce 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 calcu lating and verifying whether any GHG emission increases, based on potential to emit, are also subject to PSD requirem ents 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 CO 2 e or more unless the source accepts a synthetic minor limit in their PSD permit to limit their PTE below the 75K tpy CO 2 e threshold.

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

Meaning of the “Carbon Dioxide Equivalent” or “CO 2 e” term and a description of how it is calculated

Questions/Issues: What does the term carbon dioxide equivalent or CO 2 e 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 CO 2 equivalent emissions (CO 2 e) shall represent an amount of GHGs emitted, and shall be computed as follows: (a) Multiplying the mass amount of emi ssions (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

CO 2 e.

2. 40 CFR Part 70.2: The term tpy CO 2 equivalent emissions (CO 2 e) 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 chapte r—Global Warming Potentials, and summing the resultant value for each to compute a tpy CO 2 e.

Click here to return to the Table of Contents.

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