DEC 302013 December 20, 2013

via electronic and US. Mail

Ms. Deborah Jordan

Air Director, Region IX

United States Environmental Protection Agency

75 Hawthorne Street

San Francisco CA 94105

Re: South Coast Air Quality Management District (SCAQMD) Rule 1325

Dear Ms. Jordan:

This letter is to respond to a request from your staff and the Office of Regional Counsel to

explain the public notice requirements applicable to permits to be issued under SCAQMD

Rule 1325-Federal PM2.5 New Source Review Program.

Rule 1325 applies to new major polluting facilities of PM2.5 and major modifications of existing

major polluting facilities. (Rule 1325(a)). The term major polluting facility is defmed as an

emissions source having actual emissions or the potential to emit 100 tons or more per year of

PM2.5 or its precursors. (Rule 1325(b)(5).) The term major modification is defined as being a

modification which results in a “significant net emissions increase” ofthe relevant pollutant.

(Rule I 325(b)(4)(A).) The term “significant” as used in reference to a net emissions increase

means to equal or exceed any ofthe following rates: nitrogen oxides: 40 tons per year; sulfurdioxide: 40 tons per year, and PM2.5: 10 tons per year. (Rule 1325(b)(13).) SCAQMD Rule

212 Standards for Approving Permits as amended December 7, 1995, has been approved by EPA

into the state implementation plan (SIP). (61 Fed. Reg. 64291 (Dec. 4, 1996).) The SIPapproved version of SCAQMD Rule 212 ensures adequate public notice of permit actions with

respect to new major polluting facilities or major modifications of existing major polluting

facilities.

The relevant portions of Rule 212 are as follows: Rule 2 12(c) provides that prior to granting aPermit to Construct for a “significant project,” all addresses within the area described in

subdivision (d) of Rule 212 shall be notified of the intent to grant a permit to construct at least

30 days prior to the date action is taken on the application. Rule 2 12(c) applies to all permits to

construct for new facilities or modifications, including those subject to Rule 1325. Rule 2 12(c)

applies to both permits for new facilities and permits for modifications offacilities, and, for

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subdivision (g) of Rule 212.

As we explain below, the answer is yes, because the threshold triggering public notice under

subdivision (g) is, for each pollutant, smaller than the thresholds identified in Rule 1325. Thus,

all permit actions under Rule 1325 will also trigger public notice under subdivision (g).

The major polluting facility threshold for PM2.5 or its precursors is 100 tons per year. The term“precursors” is limited to nitrogen oxides and sulfur dioxide. (Rule 1325(b)(9).) The Rule 212

subdivision (g) threshold for public notice is 30 pounds per day of PM1O. This equates to less

than 5.5 tons per year of PM1O. Since all of PM2.5 is also PM1O, any new source which exceeds

100 tons per year of PM1O will necessarily exceed 5 tons per year of PM1O, and will be subject

to public notice under Rule 212 subdivision (g). For NOx, the relevant subdivision (g) threshold

is 40 pounds per day, which equates to 7.3 tons per year, which is smaller than the major source

threshold of 100 tons per year. For sulfur dioxide, the subdivision (g) threshold is 60 pounds per

day, which is less than 11 tons per year. Again, this is smaller than the major sources thresholdof 100 tons per year. Therefore, all new major polluting facilities under Rule 1325 will be

subject to public notice under Rule 2 12(g).

Similarly, all modifications resulting in

a “significant” net increase will also be subject to public

notice under Rule

2 12(g). The “significance” threshold for an increase of PM2.5 at a major

polluting facility is 10 tons per year. Since all PM2.5 is PM1O, any increase of 10 tpy of PM2.5necessarily results in at least 10 tpy of PM1O. Under Rule 212(g), public notice is required for

all modifications with an increase of 5.5 tpy of PM 10—smaller than the PM2.5 significance

level. Thus, all significant modifications at major polluting facilities resulting in 10 tpy or more

of PM2.5 will be subject to public notice. Similarly for nitrogen oxides, the significance

threshold is 40 tons per year, which the Rule 2 12(g) threshold is about 7.3 tons per year. And for

sulfur oxides, the significance threshold is 40 tpy, while the Rule

2 12(g) threshold is less than 11

tpy. Therefore, all major modifications at major polluting facilities under Rule 1325 will be

subject to public notice under Rule

2 12(g).

Finally, the public notice required under Rule 212(g) is adequate to meet the requirements formajor New Source Review. Rule

2 12(g) specifies that “the process for public notification and

comment shall include all ofthe applicable provisions of 40 Code of Federal Regulations (CFR)

Part 51, Section 51.161(b), and 40 CFR, Part 124, Section 124.10.” Thus, Rule 212(g)

incorporates by reference the relevant federal requirements. In addition, Rule 212(g) specifically

calls out certain requirements, such as public notice distributed to “the broadest possible scope of

interested parties,” and including availability ofinformation for public inspection, notice by

newspaper advertisement, mailing

a copy ofthe notice to the relevant public agency

representatives and Indian Governing Bodies, and

a 30 day period for public comment. And
minimum requirement, while in some cases notice may be distributed to a wider area.

Should you have any further questions regarding this issue, please feel free to contact me at

bbaird(aqmd.gov or 909-396-2302.

Respectfully submitted,

Barbara

(nir&

Baird

Chief Deputy Counsel

South Coast Air Quality Management District

BB:pa

eIBB/NSR-PSD/1325 notice

Attachment: SCAQMD Rule 212 as Amended December 7, 1995

cc: Am Lyons, Office of Regional Counsel

Mohsen Nazemi, SCAQMD
(a) The Executive Officer or designee shall deny a Permit to Construct or a Permit to

Operate, except as provided in Rule 204, unless the applicant shows that the

equipment the use ofwhich may cause the issuance of air contaminants or the use

of which. may eliminate, reduce, or control the issuance of air contaminants, is sodesigned, controlled, or equipped with such air pollution control equipment that it

may be expected to operate without emitting air contaminants in violation of

Section 41700, 41701, or 44300 (et sec.) ofthe State Health and Safety Code or of

these rules.

(b) Ifthe Executive Officer or designee finds that the equipment has not been

constructed in accordance with the permit and provides less effective air pollution

control than the equipment specified in the Permit to Construct, he shall deny the

Permit to Operate.

(c) Prior to granting a Permit to Construct for a significant project, all addresses

within the area described in section (d) shall be notified ofthe Executive Officer’s

or designee’s intent to grant a Permit to Construct at least 30 days prior to the dateaction is to be taken on the application. For the purpose ofthis rule, significant

projects will consist of:

(1) all new or modified permit units that may emit air contaminants located

within 1000 feet from the outer boundary of a school. This subdivision

shall not apply to modification of an existing facility if the Executive

Officer or designee determines that the modification will result in a

reduction of emissions of air contaminants from the facility and no

increase in health risk at any receptor location. This paragraph shall not

n—, apply to modifications that have no potential to affect emissions;

all new or modified facilities which have on-site emission increases

exceeding any ofthe daily maximums specified in subdivision (g) ofthis

rule; and

212-1
substances that pose a potential risk of nuisance. Toxic and potentially

toxic air contaminants are substances listed in Table I ofRule 1401, or any

other material determined by the Executive Officer or designee to be

potentially toxic. This paragraph shall not apply ifthe Executive Officer

or designee determines that modifications to the existing facility will not

result in an increase in health risk at any receptor location.

(d) Except as provided for in subdivision (g), the notification ofthe proposed

construction of a significant project, which is to be prepared by the District, is tocontain sufficient detail to fully describe the project. The applicant shall provide

verification to the Executive Officer or designee that public notice has been

distributed as required by this subdivision. In the case of notifications performed

under paragraphs (c)(2) and (c)(3), the applicant for the Permit to Construct shallbe responsible for the distribution ofthe public notice to each address within a 1/4

mile radius ofthe project or such other area as determined appropriate by theExecutive Officer or designee. In the case of notifications performed under

paragraph (c)(1), distribution ofthe public notice shall be to the parents of

children in any school within 1/4 mile ofthe facility and the applicant shall

provide distribution ofthe public notice to each address within a radius of 750

feet from the outer prope line ofthe proposed new or modified facility.

(e) Any person may file a written request for notice of any decision or action

pertaining to the issuance of a Permit to Construct. The Executive Officer ordesignee shall provide mailed notice ofsuch decision or action to any person who

has filed a written request for notification. Requests for notice shall be filed

pursuant to procedures established by the Executive Officer or designee. Thenotice shall be mailed at the time that the Executive Officer or designee notifies

the permit applicant ofthe decision or actions The 10-day period to appeal,

specified in Rule 216(b), shall commence on the third day following mailing of

the notice pursuant to this subdivision. The requirements for public noticepursuant to this subdivision are fulfilled ifthe Executive Officer makes a good

212-2
(f) An application for a Permit to Operate, for a permit unit installed or constructed

without a required Permit to Construct, shall be subject to the requirements ofthis

rule.

(g) For new or modified sources subject to Regulation XX, RECLAIM facilities, or

Outer Continental Shelf(OCS) Facilities located within 25 miles ofthe State’s

seaward boundary and for which the District has been designated as the

corresponding onshore area (COA), which undergo construction or modifications

resulting in an emissions increase exceeding any ofthe daily maximums specifiedas follows:

Daily Maximum

Air Contaminant in lbs per Day

Volatile Organic Compounds 30

Nitrogen Oxides 40

PM10 30

Sulfur Dioxide 60

Carbon Monoxide 220

Lead 3

The process for public notification and comment shall include all ofthe applicable

provisions of 40 Code of Federal Regulations (CFR) Part 51, Section 51.161(b),

and 40 CFR Part 124, Section 124.10. The federal public notice and comment

procedures for these facilities require that the public notice be distributed to the

broadest possible scope of interested parties, and include at a minimum:

(1) Availability of information submitted by the owner or operator and of

District analyses ofthe effect on air quality for public inspection in at least

one location in the area affected;

(2) Notice by prominent advertisement in the area affected ofthe location of

the source information and the District’s analyses ofthe effect on air

quality;

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modification would be located, any comprehensive regional land use

planning agency, and State, Federal Land Manager, or Indian GoverningBody whose lands may be affected by emissions from the regulated

activity;

(4) A 30-day period for submittal of public comments.

212-4