OSr4UNITEDSTATESENVIRONMENTALPROTECTIONAGENCYREGIONIX75HawthorneStreetlcSanFrancisco.CA941;JPROApril17,2012DavidWarnerSanJoaquinValleyAPCD1990E.GettysburgAve.Fresno,California93726-0244DearMr.Warner:OnAugust23,2011,theCaliforniaAirResourceBoardsubmittedSanJoaquinValleyAirPollutionControlDistrict(District)Rule2410,PreventionofSignificantDeterioration(PSD),forsubmittalintoCalifornia’sStateImplementationPlan(SIP).WeappreciatetheDistrict’scommitmenttoimplementthePSDprogramintheDistrict.WerecentlynotifiedyouthatwearerequestingadditionalinformationfromtheDistrictwhichwehavedeterminedisnecessaryforprocessingthisPSDSIPsubmittal.Asrequestedbyyouroffice,wearesendingthislettertoprovidemoredetailedinformationconcerningourrequestthattheDistrictprovidecertainclarificationsregardingDistrictRule2410andhowtheDistrictwillimplementitsrulestoensurethatitsPSDprogramsatisfiestherequirementsof40CFR51.166forPSDprograms.Inaddition,werequestthattheDistrictprovidefurtherconfirmationandexplanationconcerning(1)theDistrict’sauthority,personnel,andfundingtoimplementthePSDprogramwithintheDistrictpursuanttoCleanAirActSection1l0(a)(2)(E)(i),and(2)theDistrict’srequesttoimplementthePSDprogramwithrespecttoexistingPSDpermitsissuedbyEPA.Pleaseseetheattachedinformationforthedetailsofourrequests.WelookforwardtoreviewingtheadditionalinformationrequestedfromtheDistrict.Wesuggestthatyousendyourwrittenresponsetousindraftformsothatwemayidentifyanyadditionalclarificationsneededbeforetheresponseisfinalized.Ifyouhavequestionsorcommentspleasefeelfreetocontactmeat(415)972-3974,oryourstaffmaycontactLauraYannayonat(415)972-3534.Sincerely,7//Gerardo(.KIOSChief,AirPermitsOfficeAttachmentREQUESTEDCLARIFICATIONSCONCERNINGCERTAINREQUIREMENTSOF40CFR51.166Certainrequirementsandproceduresincludedin40CFR51.166arenotspecificallyaddressedin40CFR52.21orDistrictRule2410.WerequestthattheDistrictprovideadditionalinformationconfirmingand/orexplaininghowtheserequirementswillbeaddressed.ItappearsthatotherDistrictrulesandproceduralcommitmentsfromtheDistrictwouldadequatelyaddresstheseprovisions.ToassistusinprocessingyourPSDSIPsubmittal,pleaseprovidewrittenconfirmationand/oradditionalinformationasspecifiedbelow.1.PermitProcessingProceduresandPublicParticipationDistrictRule2410,Section4.3specifiesthatPSDrequirementsshallbeincorporatedintoandmadeenforceablethroughauthoritytoconstructpermitsandpermitstooperateaccordingtotheexistingpermittingrequirementsofRegulationIIoftheDistrict’sRulesandRegulations.BelowweclarifywhichofthespecificprovisionsinRegulationIIwebelieveappeartoaddressthepublicparticipationandpermitprocessingrequirementsforPSDprogramscontainedin40CFR51.166(q)—PublicParticipationorotherproceduralcommitmentsthatwebelievearenecessaryorappropriatetoensurethattheprovisionsof40CFR51.166(q)willbeadequatelyaddressed.a.40CFR51.166(q)(1)—ThereviewingauthorityshallnotifyallapplicantswithinaspecfIedtimeperiodastothecompletenessoftheapplicationoranydeficiencyintheapplicationorinformationsubmitted.Intheeventofsuchadeficiency,thedateofreceiptoftheapplicationshallbethedateonwhichthereviewingauthorityreceivedallrequiredinformation.TheserequirementsappeartobemetbyDistrictRule2201,Section5.1.PleaseconfirmthisreflectstheDistrict’sinterpretationand/orprovideadditionalinformationdemonstratinghowtheDistrictwilladdressthisrequirement.b.40CFR51.166(q)(2)—Withinoneyearafterreceiptofacompleteapplication,thereviewingauthorityshall:(i)Makeapreliminarydeterminationwhetherconstructionshouldheapproved,approvedwithconditions,ordisapproved.ThisrequirementappearstobemetbyDistrictRule2201,Sections5.2and5.3.PleaseconfirmthatthisreflectstheDistrict’sinterpretationand/orprovideadditionalinformationdemonstratinghowtheDistrictwilladdressthisrequirement.c.(ii)Makeavailableinatleastonelocationineachregioninwhichtheproposedsourcewouldbeconstructedacopyofallmaterialstheapplicantsubmitted,acopyofthepreliminarydetermination,andacopyorsummaryofothermaterials,ifany,consideredinmakingthepreliminarydetermination.ThisrequirementappearstobemetbyDistrictRule2201,Sections5.5.4and5.9.1.2.4.PleaseconfirmthatthisreflectstheDistrict’sinterpretationand/orprovideadditionalinformationdemonstratinghowtheDistrictwilladdressthisrequirement.ci.(iii)--ATotfj’thepublic,byadvertisementinanewspaperofgeneralcirculationineachregioninwhichtheproposedsourcewouldbeconstructed,oftheapplication,thepreliminarydetermination,thedegreeofincrementconsumptionthatisexpectedfromthesourceormod/ication,andoftheopportunityJbrcommentatapublichearingaswellaswrittenpubliccomment.TheserequirementsappeartobemetbyDistrictRule2201,Sections5.5.1,5.9.1.2.1,5.9.1.2.3,5.9.1.2.4,5.9.1.2.5,and5.9.1.2.6.Whiletheseruleprovisionsdonotspecificallystatethatthenoticemustincludethe“degreeofincrementconsumptionthatisexpectedfromthesourceormodification,”theydorequirethenoticetoidentify“theemissionschangeinvolvedinthepermitaction”inSection5.9.1.2.1.AnincrementanalysisisrequiredbyRule2410,at40CFR52.21(k)(1)(ii),todemonstratethattheallowableemissionincreasesfromtheproposedsourceormodificationwouldnotcauseorcontributetoairpollutioninviolationofanyapplicablemaximumallowableincrease(increment)overthebaselineconcentrationinanyarea.ForaPSDpermit,the“degreeofincrementconsumptionthatisexpectedfromthesourceormodification”isapartofthe“emissionschangeinvolvedinthepermitaction”andmustbeidentifiedinthepublicnotice.PleaseconfirmthatthisreflectstheDistrict’sinterpretationand/orprovideadditionalinformationdemonstratinghowtheDistrictwilladdressthisrequirement.Wealsorequestthatforclarity,theDistrictspecificallyconfirmthatitcommitstoensurethatitspublicnoticesforPSDpermitsinclude“thedegreeofincrementconsumptionthatisexpectedfromthesourceormodification”andthatitcommitstorevisetherule,forclarity,thenexttimeRule2410isopenforrevision.e.(iv)—Sendacopyofthenoticeofpubliccommenttotheapplicant,theAdministratorandtoofficialsandagencieshavingcognizanceoverthelocationwheretheproposedconstructionwouldoccurasfollows:AnyotherStateorlocalairpollutioncontrolagencies,thechiefexecutivesofthecityandcountywherethesourcewouldhelocated;anycomprehensiveregionallanduseplanningagency,andanyState,FederalLandManager,orIndianGoverningbodywhoselandsmaybeajjctedbyemissionsfromthesourceormodUIcation.TheserequirementsappeartobemettoacertainextentbyDistrictRule2201,Sections5.5.2,5.5.3,and5.9.1.1andby40CFR52.2l(p)(l),asincorporatedbyreferenceinRule2410.Thesesectionsbroadlyrequirenotifyingvariouspersons,agenciesand“interestedparties”,butdonotspecificallyidentifythatnoticemustbegiventothepartieslistedin40CFR51.166(q)(2)(iv).Toensurethatthisprovisionisadequatelyaddressed,pleaseconfirmthattheDistrictcommitsthatwhenissuingPSDpermits,itwillnotifyallofthepartieslistedin40CFR51.166(q)(2)(iv)andcommittorevisingtherule,forclarity,thenexttimeRule2410isopenforrevision.j:(v)Provideopportunityforapublichearingforinterestedpersonstoappearandsubmitwrittenororalcommentsontheairqualityimpactofthesource,alternativestoit,thecontroltechnologyrequired,andotherappropriateconsiderations.ThisrequirementappearstobemetbyDistrictRule2201,Section5.9.1.2.6.PleaseconfirmthatthisreflectstheDistrict’sinterpretationandJorprovideadditionalinformationdemonstratinghowtheDistrict

will address

this requirement. g.

(vi)— Consider

all written comments submitted

within

a time specified

in the notice

of public comment

and

all comments received

at any public hearing(s)

in making
afinal decision

on the approvability

of the application.

The reviewing authority

shall make

all comments available

for public inspection

in the same locations

where

the reviewing authority

made available preconstruction

information

relating

to the proposed

source

or modification. These requirements

appear

to be met

by District

Rule 2201, Sections

5.3 and 5.9.1.3.
Please confirm that
this reflects

the District’s interpretation

and/or provide additional information demonstrating how

the District

will address

this requirement. h. (vii) Make afinal determination

whether construction

should

be approved, approved

with conditions,

or disapproved. This requirement

appears

to be met

by District

Rule 2201, Section

5.3. Please confirm

that
this reflects

the District’s interpretation

and/or provide additional information demonstrating

how

the District

will address

this requirement. i. (viii)

Not

fy the applicant

in writing

of the final determination

and make

such

not fication available

for public inspection

at the same location

where

the reviewing authority

made available preconstruction

information

and public comments
relating

to the source. This requirement

appears

to be met

by District

Rule 2201, Sections

5.5.5

and 5.5.6. Please confirm that
this reflects

the District’s interpretation

and/or provide additional information demonstrating how

the District

will address

this requirement. 2. Additional Requirements

for Sources Impacting

Class

I Areas 40 CFR

51.1 66(p)(l) requires

the reviewing authority

to provide

notice

to EPA

of every action related

to the consideration

of

a PSD permit

for

a source impacting

a Class

I area: 40 CFR 51.166(p)

(1)— Notice

to EPA.

The plan shall provide

that

the reviewing authority

shall transmit

to the Administrator

a copy

of each permit application

relating

to

a major stationary source

or major modification

and provide

notice

to the Administrator

of every action related

to the consideration

of such permit. This requirement

appears

to be met

to

a certain extent

by

40 CFR
52.2 1Q,)(2),
which requires: (2) Federal

Land Manager.

The Federal

Land Manager

and

the Federal official charged

with direct responsibility

for management

of such lands

have

an affirmative responsibility

to protect the

air quality related
values (including visibility)

of such lands

and

to consider,

in consultation with

the Administrator,

whether

a proposed

source

or mod jfication

would

have

an adverse impact

on such values. (emphasis

added)

# As specified

in District

Rule 2410, Section

3.3.1,

this reference

to “Administrator”

means

the “Federal Administrator”

and

not

the APCO.

In order

to ensure

the Federal

Land Manager

(FLM)

can work

“in consultation

with

the Administrator,”

please provide confirmation

that

the District

will
also provide

notice

to the EPA

of the application

and preliminary determination information

that

is already required

to be provided

to the FLM

by

40 CFR

52.2 l(p)(l),

and that
this information

will

be provided

to EPA according

to the requirements

and timelines established

in 40 CFR
52.2 l(p)(l)

for notice

to the FLM. Please

also provide confirmation

that

the District

will provide

notice

to the Administrator

of every action related

to the consideration

of such permit,

and that

the District commits

to revising

the rule,

for clarity,

to specifically incorporate

the provisions

in 40 CFR 51.1 6 Q)(

1) the next time Rule 2410

is open

for revisions. In summary,

please provide

the information
requested

above

to confirm

that

the District’s regulations will meet

the permit processing

and public participation requirements

for PSD programs

and requires adequate

notice

to EPA

for sources impacting

Class

I areas. PROGRAM TRANSFER

ISSUES Pursuant

to Section

ii 0(a)(2)(E)(i)

of the Clean

Air Act, please provide

a written statement

and citations to demonstrate

that

the District

has adequate personnel,

funding,

and authority

under

State and/or

local law

to implement

the PSD program

within

the District. 1. Existing

PSD Permits

and Pending

EPA PSD Permit Actions EPA

has identified approximately

180 PSD permits already
issued

by EPA

to sources located

in the District.

As discussed

with

my staff, please provide confirmation

that,

as part

ot and concurrent with, EPA’s approval

of the District’s

PSD program

into

the SIP,

the District

is requesting
approval to exercise

its authority

to administer

the PSD program

with respect

to those sources located

in the District

that have existing

PSD permits

issued

by EPA.’

This would include authority

to conduct general administration

of these existing permits, authority

to process

and issue

any
and

all subsequent

PSD permit actions relating

to such permits including,

for example, modifications, amendments,

or revisions

of any nature,

and authority

to enforce

such permits.

Your statement

under Section

11 0(a)(2)(E)(i)

of the Clean

Air Act

as described

below should specifically

include

a demonstration

that

the District

has adequate personnel,

funding,

and authority

under

State and/or local

law

to implement

the PSD program

within

the District

with respect

to these existing permits. 2. Statement Pursuant

to Section 110(a)(2)(E)(i)

of the Clean

Air Act In general,

your written statement

should confirm

that

the District

has
the authority

under

State statute and/or

rule

to administer

the PSD permit program, including

but not limited

to the authority to administer,

process

and issue

any and

all permit decisions,

and enforce

PSD permit requirements1 

# Please

note
that

we will provide
further information

in the near future concerning

our proposed approach

for the transition of PSD implementation

authority

for specific sources

that have submitted

PSD permit applications

to EPA

and

for which EPA

has issued

a proposed

permit decision,

but

for which

final agency
action andlor

the exhaustion ofadministrative

and judicial appeals processes

and associated

actions

have been

not been concluded

or completed

upon

the date

of EPA’s

final action

on the District’s

PSD

SIP submittal.for PSD permits

the District

will issue

and

for PSD permits

issued

by EPA within

the District.

It should identify through citation

and attach

(to the extent already

not provided

to EPA)

the applicable legal provisions establishing

such authority.

Second,

your confirmation

letter should confirm

that

the District

has adequate personnel

and funding

to administer, implement

and enforce

the PSD program. To this end,

the statement

should include

such information

as the number

of employees

the District currently employs

or will employ

to implement

and enforce

the PSD program,

and

the amount

of funding

and sources

of funding

of program revenue

that will support

the PSD program.