David Warner

San Joaquin Valley APCD

1990 E. Gettysburg Ave.

Fresno, California 93 726-0244

Dear Mr. Warner:

On August 23, 2011, the California Air Resource Board submitted San Joaquin Valley Air

Pollution Control District (District) Rule 2410, Prevention of Significant Deterioration (PSD), for

submittal into California’s State Implementation Plan (SIP). We appreciate the District’s commitment to

implement the PSD program in the District. We recently notified you that we are requesting additionalinformation from the District which we have determined is necessary for processing this PSD SIP

submittal.

As requested by your office, we are sending this letter to provide more detailed information

concerning our request that the District provide certain clarifications regarding District Rule 2410 and

how the District will implement its rules to ensure that its PSD program satisfies the requirements of 40

CFR 51.166 for PSD programs. In addition, we request that the District provide further confirmation andexplanation concerning (1) the District’s authority, personnel, and funding to implement the PSD

program within the District pursuant to Clean Air Act Section 1 l0(a)(2)(E)(i), and (2) the District’srequest to implement the PSD program with respect to existing PSD permits issued by EPA. Please see

the attached information for the details of our requests.

We look forward to reviewing the additional information requested from the District. We suggest

that you send your written response to us in draft form so that we may identify any additional

clarifications needed before the response is finalized.

If you have questions or comments please feel free to contact me at (415) 972-3974, or your staff

may contact Laura Yannayon at (415) 972-3534.

Sincerely,

7/

/ Gerardo (. KIOS

Chief, Air Permits Office

Attachment
1. Permit Processing Procedures and Public Participation

District Rule 2410, Section 4.3 specifies that PSD requirements shall be incorporated into and madeenforceable through authority to construct permits and permits to operate according to the existing

permitting requirements of Regulation II ofthe District’s Rules and Regulations. Below we clarifywhich ofthe specific provisions in Regulation II we believe appear to address the public

participation and permit processing requirements for PSD programs contained in 40 CFR 51.166(q) — Public Participation or other procedural commitments that we believe are necessary or appropriateto ensure that the provisions of 40 CFR 51.166(q) will be adequately addressed.

a. 40 CFR 51.166(q)(1) — The reviewing authority shall notify all applicants within a

specfIed time period as to the completeness ofthe application or any deficiency in the

application or information submitted. In the event ofsuch a deficiency, the date ofreceiptofthe application shall be the date on which the reviewing authority received all required

information.

These requirements appear to be met by District Rule 2201, Section 5.1. Please confirm this reflects

the District’s interpretation and/or provide additional information demonstrating how the District

will address this requirement.

b. 40 CFR 51.166(q)(2) — Within one year after receipt ofa complete application, the

reviewing authority shall:

(i) Make a preliminary determination whether construction should he approved,

approved with conditions, or disapproved.

This requirement appears to be met by District Rule 2201, Sections 5.2 and 5.3. Please confirm that

this reflects the District’s interpretation and/or provide additional information demonstrating how the

District will address this requirement.

c. (ii) Make available in at least one location in each region in which the proposed source

would be constructed a copy ofall materials the applicant submitted, a copy ofthe

preliminary determination, and a copy or summary ofother materials, ifany, considered

in making the preliminary determination.

This requirement appears to be met by District Rule 2201, Sections 5.5.4 and 5.9.1.2.4. Please

confirm that this reflects the District’s interpretation and/or provide additional information
These requirements appear to be met by District Rule 2201, Sections 5.5.1, 5.9.1.2.1, 5.9.1.2.3,

5.9.1.2.4, 5.9.1.2.5, and 5.9.1.2.6. While these rule provisions do not specifically state that the notice

must include the “degree of increment consumption that is expected from the source or

modification,” they do require the notice to identify “the emissions change involved in the permit

action” in Section 5.9.1.2.1. An increment analysis is required by Rule 2410, at 40 CFR

52.2 1(k)(1)(ii), to demonstrate that the allowable emission increases from the proposed source or

modification would not cause or contribute to air pollution in violation of any applicable maximum

allowable increase (increment) over the baseline concentration in any area. For a PSD permit, the“degree of increment consumption that is expected from the source or modification” is a part of the

“emissions change involved in the permit action” and must be identified in the public notice. Please

confirm that this reflects the District’s interpretation and/or provide additional informationdemonstrating how the District will address this requirement. We also request that for clarity, the

District specifically confirm that it commits to ensure that its public notices for PSD permits include

“the degree of increment consumption that is expected from the source or modification” and that itcommits to revise the rule, for clarity, the next time Rule 2410 is open for revision.

e. (iv) — Send a copy ofthe notice ofpublic comment to the applicant, the Administrator and

to officials and agencies having cognizance over the location where the proposed

construction would occur asfollows: Any other State or local air pollution controlagencies, the chiefexecutives ofthe city and county where the source would he located;any comprehensive regional land use planning agency, and any State, Federal Land

Manager, or Indian Governing body whose lands may be ajjcted by emissions from the

source or modUIcation.

These requirements appear to be met to a certain extent by District Rule 2201, Sections 5.5.2, 5.5.3,and 5.9.1.1 and by 40 CFR 52.2l(p)(l), as incorporated by reference in Rule 2410. These sections

broadly require notifying various persons, agencies and “interested parties”, but do not specificallyidentify that notice must be given to the parties listed in 40 CFR 51.1 66(q)(2)(iv). To ensure that this

provision is adequately addressed, please confirm that the District commits that when issuing PSD

permits, it will notify all of the parties listed in 40 CFR 51 .1 66(q)(2)(iv) and commit to revising the

rule, for clarity, the next time Rule 2410 is open for revision.

j: (v) Provide opportunityfor a public hearing for interestedpersons to appear and submit

written or oral comments on the air quality impact ofthe source, alternatives to it, thecontrol technology required, and other appropriate considerations.

This requirement appears to be met by District Rule 2201, Section 5.9.1.2.6. Please confirm that this

reflects the District’s interpretation andJor provide additional information demonstrating how the
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) Notfy the applicant in writing ofthe final determination and make such notfication

available for public inspection at the same location where the reviewing authority made

available preconstruction information andpublic 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 ofeach permit application relating to a major stationary

source or major modification andprovide notice to the Administrator ofevery action related to

the consideration ofsuch 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 responsibilityfor management ofsuch lands have an affirmative responsibility to protect the air quality related values (including visibility) ofsuch lands and to consider, in consultation

with the Administrator, whether a proposed source or modjfication would have an adverse

impact on such values. (emphasis added)
y 

commits to revising the rule, for clarity, to specifically incorporate the provisions in 40 CFR

51.1 6Q)( 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 ofthe 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 ofthese 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) ofthe 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) ofthe 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 requirements

1 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.