SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

(January 27, 2011)February 26, 1991 203-1 

RULE 203 PREVENTION OF SIGNIFICANT DETERIORATION

Adopted 2-26-91

(Amended 1-27-11)

The provisions of Part 52.21, Chapter 1, Title 40, of the Code of Federal Regulations (CFR) in effect 

February 26, 1991 are made part of the Rules and Regulations of the Sacramento Metropolitan Air 

Quality Management District. Whenever any source is subject to more than one rule, regulation, 

provision, or requirement relating to the control of any air contaminant, in cases of conflict or duplication, 

the most stringent rule, regulation, provision, or requirement shall apply. 

For the purposes of this Rule, the word "Administrator" as used in Part 52.21, Chapter 1, Title 40 of the 

CFR shall mean the Air Pollution Control Officer, except that the Air Pollution Control Officer shall not be 

empowered to grant a waiver or variance from the requirements of this Part without the written 

concurrence of U.S. EPA.

100 GENERAL 

101 PURPOSE 

102 APPLICABILITY 

103 INCORPORATION BY REFERENCE 

104 EXCLUSION, GENERAL 

105 EXEMPTION, GREENHOUSE GAS AIR QUALITY ANALYSES 

200 DEFINITIONS 

201 ACTUAL EMISSIONS 

202 ADMINISTRATOR 

202 ALLOWABLE EMISSIONS 

204 BASELINE ACTUAL EMISSIONS 

205 MAJOR MODIFICATION 

206 NET EMISSIONS INCREASE 

207 PARAGRAPH (q) 

208 POTENTIAL TO EMIT 

300 STANDARDS

301 REQUIREMENTS 

400 ADMINISTRATIVE REQUIREMENTS 

401 PUBLIC PARTICIPATION 

500 RECORDKEEPING (NOT APPLICABLE) 
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100 GENERAL

101 PURPOSE: The Prevention of Significant Deterioration (PSD) program is a construction 

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

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

any regulated NSR pollutant including greenhouse gases. The intent of this Rule is to 

incorporate the federal PSD rule requirements into the District’s Rules and Regulations 

by incorporating the federal requirements by reference. 

102 APPLICABILITY: The provisions of this rule shall apply to any source and the owner or 

operator of any source subject to any requirement under Title 40 Code of Federal 

Regulations (hereinafter, CFR) Part 52.21 as incorporated into this rule. Whenever any 

source is subject to more than one rule, regulation, provision, or requirement relating to 

the control of any regulated NSR pollutant, in cases of conflict or duplication, the most 

stringent rule, regulation, provision, or requirement shall apply. The applicability 

procedures contained in 40 CFR 52.21(a)(2) are replaced with the following language: 

102.1 No stationary source or modification to which the requirements of subsections (j) 

through (r) of 40 CFR Part 52.21 apply shall begin actual construction without a 

District permit stating that the stationary source or modification would meet those 

requirements. 

102.2 The requirements of subsections (j) through (r) of 40 CFR Part 52.21 shall apply 

to any major stationary source and any major modification with respect to each 

pollutant subject to regulation under the Act that it would emit, except as this 

section otherwise provides. 

102.3 The requirements of subsections (j) through (r) of 40 CFR Part 52.21 apply only 

to any major stationary source or major modification that would be constructed in 

an area designated as attainment or unclassifiable under U.S. Code section 

7407(d) or (e). 

102.4 In determining whether a stationary source or modification is major, fugitive 

emissions from an emissions unit are included only if the emissions unit is part of 

one of the source categories listed in 40 CFR 52.21(b)(1)(iii) or if the emission 

unit is located at a stationary source that belongs to one of the source categories 

listed in 40 CFR 52.21(b)(1)(iii). Fugitive emissions are not included for those 

emissions units located at a facility whose primary activity is not represented by 

one of the source categories listed in 40 CFR 52.21(b)(1)(iii) and that are not, by 

themselves, part of a listed source category. 

103 INCORPORATION BY REFERENCE: Except as provided in Section 104, the provisions

of Title 40 of the Code of Federal Regulations (CFR) Part 52.21, in effect on (date of 

adoption), are incorporated herein by reference and made part of the Rules and 

Regulations of the Sacramento Metropolitan Air Quality Management District. All 

references to 40 CFR 52.21 in this Rule refer to the CFR in effect on (date of adoption). 

104 EXCLUSION, GENERAL: The following subsections of 40 CFR Part 52.21, in effect 

(date of adoption), as well as all references to these subsections or the terms defined in 

these subsections, are excluded in their entirety: (a)(1), (b)(55-58), (f), (g), (i)(1)((i-v) and 

(ix-xi)), (i)(6-8), (p)(6-8), (q), (s), (t), (u), (v), (w), (x), (y), (z), (aa), and (cc). 

105 EXEMPTION, GREENHOUSE GAS AIR QUALITY ANALYSES: Greenhouse gas 

emissions shall not be subject to the requirements of subsections (k) or (m) of 40 CFR 

Part 52.21 in effect on (date of adoption). 

200 DEFINITIONS: Unless otherwise defined below, the terms used in this rule are defined in 40 

CFR Part 52.21(b) in effect on (date of adoption):
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201 ACTUAL EMISSIONS: The definition of “actual emissions” contained in 40 CFR 

52.21(b)(21) is revised to read as set forth below whenever reference is made to that 

term or 40 CFR 52.21(b)(21): 

201.1 Actual emissions means the actual rate of emissions of a pollutant from an 

emissions unit, as determined in accordance with Sections 201.2 through 201.4 

of this rule. 

201.2 In general, actual emissions as of a particular date shall equal the average rate, 

in tons per year, at which the unit actually emitted the pollutant during a two-year 

period which precedes the particular date and which is representative of normal 

source operation. The Administrator shall allow the use of a different time period 

upon a determination that it is more representative of normal source operation. 

Actual emissions shall be calculated using the unit’s actual operating hours, 

production rates, and types of materials processed, stored, or combusted during 

the selected time period. 

201.3 The Administrator may presume that source-specific allowable emissions for the 

unit are equivalent to the actual emissions of the unit. 

201.4 For any emissions unit which has not begun normal operations on the particular 

date, actual emissions shall equal the potential to emit of the unit on that date. 

202 ADMINISTRATOR: The term “administrator” means: 

202.1 “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 

202.2 “Air Pollution Control Officer” elsewhere. 

203 ALLOWABLE EMISSIONS: The definition of “allowable emissions” contained in 40 CFR 

52.21(b)(16) is revised to read as set forth below whenever reference is made to that 

term or 40 CFR 52.21(b)(16): 

203.1 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 that restrict the operating rate, or hours of 

operation, or both.” 

203.2 Paragraph (iii) shall read as follows: “The emissions rate specified as an 

enforceable permit condition, including those with a future compliance date.” 

204 BASELINE ACTUAL EMISSIONS: The definition of “baseline actual emissions” 

contained in 40 CFR 52.21(b)(48) is revised to read as set forth below whenever 

reference is made to that term or 40 CFR 52.21(b)(48): 

204.1 Baseline actual emissions means the actual rate of emissions of a pollutant from 

an emissions unit, as determined in accordance with Sections 204.2 through 

204.4 of this rule. 

204.2 In general, baseline actual emissions as of a particular date shall equal the 

average rate, in tons per year, at which the unit actually emitted the pollutant 

during a 24 month period which precedes the particular date and which is 

representative of normal source operation. The Administrator shall allow the use 

of a different time period upon a determination that it is more representative of 

normal source operation. Baseline actual emissions shall be calculated using the 

unit’s actual operating hours, production rates, and types of materials processed, 

stored, or combusted during the selected time period. 

204.3 For any emissions unit which has not begun normal operations on the particular 

date, baseline actual emissions shall equal the potential to emit of the unit on that 

date. 

205 MAJOR MODIFICATION: The definition of “major modification” contained in 40 CFR 

52.21(b)(2) is revised to read as set forth below whenever reference is made to that term 

or 40 CFR 52.21(b)(2): 
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205.1 Major modification means any physical change in or change in the method of 

operation of a major stationary source that would result in a significant net 

emissions increase of any pollutant subject to regulation under the Act. 

205.2 Any net emissions increase that is significant for volatile organic compounds 

shall be considered significant for ozone. 

205.3 A physical change or change in the method of operation shall not include: 

a. Routine maintenance, repair and replacement; 

b. Use of an alternative fuel or raw material by reason of an order under 

sections 2 (a) and (b) of the Energy Supply and Environmental 

Coordination Act of 1974 (or any superseding legislation) or by reason of 

a natural gas curtailment plant pursuant to the Federal Power Act; 

c. Use of an alternative fuel by reason of an order or rule under section 125 

of the Act; 

d. Use of an alternative fuel at a steam generating unit to the extent that the 

fuel is generated from municipal solid waste; 

e. Use of an alternative fuel or raw material by a stationary source which: 

1. The source was capable of accommodating before January 6, 

1975, unless such change would be prohibited under any 

federally enforceable permit condition which was established 

after January 6, 1975 pursuant to 40 CFR 52.21 or under 

regulations approved pursuant to 40 CFR subpart I or 40 CFR 

51.166; or 

2. The source is approved to use under any permit issued under 40 

CFR 52.21 or under regulations approved pursuant to 40 CFR 

51.166; 

f. An increase in the hours of operation or in the production rate, unless 

such change would be prohibited under any federally enforceable permit 

condition which was established after January 6, 1975, pursuant to 40 

CFR 52.21 or under regulations approved pursuant to 40 CFR subpart I 

or 40 CFR 51.166. 

g. Any change in ownership at a stationary source. 

h. Fugitive emissions shall not be included in determining for any of the 

purposes of this section whether a physical change in or change in the 

method of operation of a major stationary source is a major modification, 

unless the source belongs to one of the source categories listed in 

paragraph 40 CFR Part 52.21(b)(1)(iii). 

206 NET EMISSIONS INCREASE: The definition of “net emissions increase” contained in 40 

CFR 52.21(b)(3) is revised to read as set forth below whenever reference is made to that 

term or 40 CFR 52.21(b)(3): 

206.1 Net emissions increase means the amount by which the sum of the following 

exceeds zero: 

a. Any increase in actual emissions from a particular physical change or 

change in method of operation at a stationary source; and 

b. Any other increases and decreases in actual emissions at the source 

that are contemporaneous with the particular change and are otherwise 

creditable. 

206.2 An increase or decrease in actual emissions is contemporaneous with the 

increase from the particular change only if it occurs between: 

a. The date five years before construction on the particular change 

commences; and 

b. The date that the increase from the particular change occurs. 

206.3 An increase or decrease in actual emissions is creditable only if the Administrator 

has not relied on it in issuing a permit for the source under this section, which 

permit is in effect when the increase in actual emissions from the particular 

change occurs. 
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206.4 An increase or decrease in actual emissions of sulfur dioxide, particulate matter, 

or nitrogen oxide, which occurs before the applicable minor source baseline date 

is creditable only if it is required to be considered in calculating the amount of 

maximum allowable increases remaining available. With respect to particulate 

matter, only PM–10 emissions can be used to evaluate the net emissions 

increase for PM–10. 

206.5 An increase in actual emissions is creditable only to the extent that the new level 

of actual emissions exceeds the old level. 

206.6 A decrease in actual emissions is creditable only to the extent that: 

a. The old level of actual emissions or the old level of allowable emissions, 

whichever is lower, exceeds the new level of actual emissions; 

b. It is federally enforceable at and after the time that actual construction on 

the particular change begins; and 

c. It has approximately the same qualitative significance for public health 

and welfare as that attributed to the increase from the particular change. 

206.7 [Reserved] 

206.8 An increase that results from a physical change at a source occurs when the 

emissions unit on which construction occurred becomes operational and begins 

to emit a particular pollutant. Any replacement unit that requires shakedown 

becomes operational only after a reasonable shakedown period, not to exceed 

180 days. 

207 PARAGRAPH (q): The phrase “paragraph (q) of this section” in 40 CFR 52.21(p)(1) 

shall read as follows: within ten calendar days following a preliminary decision pursuant 

to Section 300, Standards, of this rule, the Air Pollution Control Officer shall publish in at 

least one newspaper of general circulation in the District a notice stating the preliminary 

decision of the Air Pollution Control Officer, noting how pertinent information can be 

obtained, and inviting written public comment for a 30-day period following the date of 

publication. The notice shall include the time and place of any hearing that may be held, 

including a statement of procedure to request a hearing (unless a hearing has already 

been scheduled). The Air Pollution Control Officer shall give notice of any public hearing 

at least 30 days in advance of the hearing. 

208 POTENTIAL TO EMIT: 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.” 

300 STANDARDS

301 REQUIREMENTS

301.1 An owner or operator must obtain a Prevention of Significant Deterioration (PSD) 

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

stationary source or a major modification as defined in 40 CFR 52.21(b). 

301.2 Notwithstanding the provisions of any other District Rule or Regulation, the Air 

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

federal Prevention of Significant Deterioration permit as required by Clean Air Act 

(CAA) Section 165. 

301.3 The applicant shall pay the applicable fees specified in Rule 301 – PERMIT 

FEES – STATIONARY SOURCE. 

400 ADMINISTRATIVE REQUIREMENTS

401 PUBLIC PARTICIPATION: Prior to issuing a federal PSD permit pursuant to this rule 

and after receipt of a complete application, the Air Pollution Control Officer shall: 

401.1 Make a preliminary determination whether construction should be approved with 

conditions or disapproved. 
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401.2 Make available for public inspection at the District office 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. 

401.3 Notify the public, by notice in at least one newspaper of general circulation in the 

District, 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. 

401.4 Send a copy of the notice of public comment to the applicant, EPA Region 9, any 

persons requesting such notice and any other interested parties such as: Any 

other State or local air pollution control agencies, the chief executives of the city 

and county where the source would be located; any comprehensive regional land 

use planning agency, and any State, Federal Land Manager, or Indian Governing 

body whose lands may be affected by emissions from the source or modification. 

401.5 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 Air 

Pollution Control Officer’s judgment such a hearing is warranted. 

401.6 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. 

401.7 Make a final determination whether construction should be approved with 

conditions or disapproved. 

401.8 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.
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