RULE 210.4 Prevention of Significant Deterioration – Adopted 9/24/84, Amended 11/18/85, 9/2/99, Amended 1/12/12 (Effective Need Date )

I. Purpose

The purpose of this Rule is to include the federal Prevention of Si gnificant Deterioration (PSD) rule requirements into the Eastern Kern Air Pollution Control District’s (District) Rules and Regulations by incorporating the federal requirements by reference. The PSD program is a construction permitting program for new major source facilities and major modifications to existing major source facilities located in areas classified as attainment or

in areas that are unclassifiable for any criteria air pollutant.

II. Definitions

The terms used in this rule are defined in Title 40 of the Code of Federal Regulations (hereinafter, CFR) Part 52.21(b) in effect on (date of adoption) unless a revised definition is provided below:

A. 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):

1. Actual emissions is the actual rate of emissions of a pollutant from an emissions unit, as determined in accordance with Sections II.A.2 through II.A.4 below.

2. In general, actual emissions as of a pa rticular date shall equal the average rate, in tons per year, at which the unit ac tually emitted the pollutant during a twoyear period which precedes the particular date and which is representative of normal source operation. The APCO sha ll allow the use of a different time period upon a determination that it is mo re representative of normal source operation. Actual emissions shall be calcu lated using the unit’s actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period.

3. The APCO may presume that source-specific allowable emissions for the unit are equivalent to the actua l emissions of the unit.

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.

B. Administrator : The term “Administrator” means:

1. “Federal Administrator” in 40 CFR 52.21(b)(17), (b)(37)(i), (b)(43), (b)(48)(ii)(c), (b)(50)(i), (b )(51), (l)(2) and (p)(2); and

2. “APCO” elsewhere.

EKAPCD 201.4-1C. APCO : Air Pollution Control Officer of th e Eastern Kern Air Pollution Control

District.

D. 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):

1. Baseline Actual Emissions means the act ual rate of emissi ons of a pollutant from an emissions unit, as determined in accordance with Sections II.E.2 and

II.E.3 below.

2. In general, Baseline Actual Emissions as of a particular date shall equal the average rate, in tons per year, at whic h 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 determinati on that it is more representative of normal source operation. Baseline Actual Emissions shall be calculated using the unit’s actual operating hours, produc tion rates, and types of materials processed, stored, or combusted during the select ed time period.

3. For any emissions unit which has not begun normal operations on the particular date, Baseline Actual Emissions shall e qual the potential to emit of the unit on

that date.

E. Major Modification : The definition of “Major M odification” contained in 40 CFR 52.21(b)(2) is revised to read as set forth be low whenever reference is made to that term or 40 CFR 52.21(b)(2):

1. Major Modification means any physical change in or change in the method of operation of a major stationary source th at would result in a significant net emissions increase of any pollutant subject to regulation under the Act.

2. Any net emissions increase that is significant for VOCs or NOx shall be considered significant for ozone.

3. A physical change or change in th e 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 supers eding legislation) or by reason of a natural gas curtailment plant pursuant to the Federal Power Act;

c. Use of an alternative fuel by reas on of an order or rule under section 125 of the Act;

EKAPCD 201.4-2d. 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:

i. 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 subpar t I or 40 CFR 51.166; or

ii. The source is approved to us e under any permit issued under 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.166;

f. An increase in the hou rs 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 incl uded 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).

F. Net Emissions Increase : The definition of “Net Emi ssions Increase” contained in 40 CFR 52.21(b)(3) is revised to read as set fo rth below whenever reference is made to that term or 40 CFR 52.21(b)(3):

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 a nd decreases in actual emi ssions at the source that are contemporaneous with the part icular change and are otherwise

creditable.

2. An increase or decrease in actual em issions is contemporaneous with the increase from the particular ch ange only if it occurs between:

a. The date five years before c onstruction on the particular change commences; and

EKAPCD 201.4-3b. The date that the increase fr om the particular change occurs.

3. An increase or decrease in actual emissions is creditable only if the

Administrator has not relie d on it in issuing a permit for the source under this section, which permit is in effect when th e increase in actual emissions from the particular change occurs.

4. An increase or decrease in actual emissi ons 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

.

5. An increase in actual emissions is creditable only to the extent that the new

level of actual emissions exceeds the old level.

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 ac tual emissions;

b. It is federally enforceable at and after the time that ac tual construction on the particular change begins; and

c. It has approximately the same qua litative significance for public health

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

7. [Reserved]

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

emissions unit on which construction occu rred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires shakedown becomes operational only after a reas onable shakedown period, not to exceed 180 days.

G. Paragraph (q) : The phrase “Paragraph (q) of th is section” in 40 CFR 52.21(p)(1)

shall read as follows: within ten calend ar days following a preliminary decision pursuant to Section IV, Requirements of this rule, the APCO shall publish in at least one newspaper of general circulation in th e District a notice stating the preliminary decision of the APCO, noting how pertinent information can be obtained, and inviting written public comment for a 30-day peri od 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 hear ing (unless a hearing has already been scheduled). The APCO shall give notice of any public hearing at least 30 days in advance of the hearing.

EKAPCD 201.4-4III. 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 CFR Part 52.21 as incorporated into this rule. This rule shall become effective upon the effective date of the federal Environmental Protection Agency’s (EPA’s) final approval of Rule 210.4.

Whenever any source is subject to more than one rule, regulation, provi sion, or requirement relating to the control of any regulated NSR pollutant, in cases of conflic t 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:

A. No stationary source or modification to which the requirements of subsections (j) through (r) of 40 CFR Part 52.21 apply sha ll begin actual construction without a District permit stating that the stationary source or modifica tion would meet those requirements.

B. The requirements of subsections (j) th rough (r) of 40 CFR Part 52.21 shall apply to any major stationary source and any major m odification with respec t to each pollutant subject to regulation under the Act that it would emit, except as this section otherwise provides.

C. The requirements of subsections (j) through (r) of 40 CFR Part 52.21 apply only to any major stationary source or major modifi cation that would be constructed in an area designated as atta inment or unclassifiable under U.S. Code section 7407(d) or (e).

D. 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 repres ented by one of the source categories listed in 40 CFR 52.21(b)(1)(iii) a nd that are not, by themselves, part of a listed source category.

IV. Incorporation by Reference

A. Except as provided in Section V.B, below, the provisions of 40 CFR Part 52.21, in effect on (date of adoption), ar e incorporated herein by refe rence and made part of the Rules and Regulations of the District. A ll references to 40 CFR 52.21 in this Rule

refer to the CFR in eff ect on (date of adoption).

B. General Exclusion : 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 entire ty: (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).

EKAPCD 201.4-5V. Exemption

Greenhouse Gas Air Quality Analysis : 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).

VI. Requirements

A. An owner or operator must obtain a PS D permit pursuant to this Rule before beginning actual constructi on of a new major stationary source or a major modification as defined in 40 CFR 52.21(b).

B. Not withstanding the provisions of any ot her District Rule or Regulation, the APCO shall require compliance with this rule prior to issuing a federal PSD permit as required by Clean Air Act (CAA) Section 165.

C. The applicant shall pay the applicable f ees specified in District Rules 301, Permit Fees and 303, Miscellaneous Fees.

VII. Public Participation

A. Prior to issuing a federal PSD permit pursu ant to this rule a nd after receipt of a complete application, the APCO shall:

1. Make a preliminary determination whet her construction should be approved with conditions or disapproved.

2. Make available in at least one loca tion in each region in which the proposed source would be constructed a copy of a ll 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 the District, of the application, the prel iminary 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 comm ent 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 agency or adjacent 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, Federa l Land Manager, or Indian Governing body whose lands may be affected by emissions from the source or

modification.

EKAPCD 201.4-6EKAPCD 201.4-7 5. Provide opportunity for a public hear ing for persons to appear and submit written or oral comments on the air qualit y impact of the source, alternatives to it, the control techno logy required, and other appropr iate considerations, if in the APCO’s judgment such a hearing is warranted.

6. Consider all written comments that were submitted within 30 days after the notice of public comment is published a nd all comments received at any public hearing(s) in making a fina l decision on the approvability of the application and make all comments available for public inspection in the same locations where

the District made availabl e preconstruction information relating to the proposed

source or modification.

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

8. Notify the applicant in writing of th e 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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