Page 1 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

51.166 Requirements of 40 CFR 51.166 for a SIP-Approval PSD Program (as of 

October 26, 2015, the last revision to 51.166) 

Where the requirement is 

found in each rule 

reviewed or in 40 CFR 

52.21 as incorporated into 

each rule 

(a)(1) Plan requirements (1) Plan requirements. In accordance with the policy of section 101(b)(1) of the Act 

and the purposes of section 160 of the Act, each applicable State Implementation Plan 

and each applicable Tribal Implementation Plan shall contain emission limitations and 

such other measures as may be necessary to prevent significant deterioration of air 

quality.

VCAPCD Rule 26.13 contains 

requirements to prevent 

significant deterioration of air 

quality. Approval of these 

rules into the CA SIP meets 

this requirement and would 

remove the existing FIP.

(a)(2) Plan revisions (2) Plan revisions. If a State Implementation Plan revision would result in increased air 

quality deterioration over any baseline concentration, the plan revision shall include a 

demonstration that it will not cause or contribute to a violation of the applicable 

increment(s). If a plan revision proposing less restrictive requirements was submitted 

after August 7, 1977 but on or before any applicable baseline date and was pending 

action by the Administrator on that date, no such demonstration is necessary with 

respect to the area for which a baseline date would be established before final action is 

taken on the plan revision. Instead, the assessment described in paragraph (a)(4) of 

this section, shall review the expected impact to the applicable increment(s).

Not applicable to this action - 

no increase over a baseline 

concentration associated with 

this submittal

(a)(3) Required plan 

revision

(3) Required plan revision. If the State or the Administrator determines that a plan is 

substantially inadequate to prevent significant deterioration or that an applicable 

increment is being violated, the plan shall be revised to correct the inadequacy or the 

violation. The plan shall be revised within 60 days of such a finding by a State or within 

60 days following notification by the Administrator, or by such later date as prescribed 

by the Administrator after consultation with the State.

Not applicable to this action. 

No determination that the plan 

is substantially inadequate has 

been made, or that an 

increment has been violated. 

(a)(4) Plan assessment (4) Plan assessment. The State shall review the adequacy of a plan on a periodic basis 

and within 60 days of such time as information becomes available that an applicable 

increment is being violated.

Not applicable to review of SIP 

submittal package.

(a)(5) Public 

participation

(5) Public participation. Any State action taken under this paragraph shall be subject to 

the opportunity for public hearing in accordance with procedures equivalent to those 

established in §51.102.

Each SIP revision submittal 

was subject to public notice 

and opportunity for public 

hearing prior to submittal

(a)(6) Amendments (6) Amendments. 

(i) Any State required to revise its implementation plan by reason of an amendment 

to this section, with the exception of amendments to add new maximum allowable 

increases or other measures pursuant to section 166(a) of the Act, shall adopt and 

submit such plan revision to the Administrator for approval no later than 3 years after 

such amendment is published in the Federal Register. With regard to a revision to an 

implementation plan by reason of an amendment to paragraph (c) of this section to 

add maximum allowable increases or other measures, the State shall submit such 

plan revision to the Administrator for approval within 21 months after such 

amendment is published in the Federal Register.

All current PSD requirements, 

as of May 2016, were 

evaluated, unless identified 

otherwise below.

(ii) Any revision to an implementation plan that would amend the provisions for the 

prevention of significant air quality deterioration in the plan shall specify when and as 

to what sources and modifications the revision is to take effect.

VCAPCD does not currently 

have any PSD plan provisions 

in the SIP. Nevertheless, the 

PSD rule indicates that the 

rule applies to the 

construction of new major 

sources or modifications at 

existing major sources. The 

VCAPCD PSD rule is currently 

effective locally and would 

become effective in the SIP 30 

days after the publication in 

the Federal Register of EPA's 

final action to approve it into 

the SIP.
Page 2 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(iii) Any revision to an implementation plan that an amendment to this section 

required shall take effect no later than the date of its approval and may operate 

prospectively.

The PSD Rule is effective 

locally and will become 

effective in the SIP 30 days 

after publication in the Federal 

Register of notice of final 

approval. 

(a)(7) Applicability (7) Applicability. Each plan shall contain procedures that incorporate the requirements 

in paragraphs (a)(7)(i) through (vi) of this section.

(i) The requirements of this section apply to the construction of any new major 

stationary source (as defined in paragraph (b)(1) of this section) or any project at an 

existing major stationary source in an area designated as attainment or unclassifiable 

under sections 107(d)(1)(A)(ii) or (iii) of the Act.

(ii) The requirements of paragraphs (j) through (r) of this section apply to the 

construction of any new major stationary source or the major modification of any 

existing major stationary source, except as this section otherwise provides.

(iii) No new major stationary source or major modification to which the requirements 

of paragraphs (j) through (r)(5) of this section apply shall begin actual construction 

without a permit that states that the major stationary source or major modification 

will meet those requirements.

(iv) Each plan shall use the specific provisions of paragraphs (a)(7)(iv)( a ) through ( 

f ) of this section. Deviations from these provisions will be approved only if the State 

specifically demonstrates that the submitted provisions are more stringent than or at 

least as stringent in all respects as the corresponding provisions in paragraphs 

(a)(7)(iv)( a ) through ( f ) of this section.

( a ) Except as otherwise provided in paragraphs (a)(7)(v) and (vi) of this section, 

and consistent with the definition of major modification contained in paragraph 

(b)(2) of this section, a project is a major modification for a regulated NSR 

pollutant if it causes two types of emissions increases—a significant emissions 

increase (as defined in paragraph (b)(39) of this section), and a significant net 

emissions increase (as defined in paragraphs (b)(3) and (b)(23) of this section). 

The project is not a major modification if it does not cause a significant emissions 

increase. If the project causes a significant emissions increase, then the project is a 

major modification only if it also results in a significant net emissions increase.

( b ) The procedure for calculating (before beginning actual construction) whether 

a significant emissions increase ( i.e. , the first step of the process) will occur 

depends upon the type of emissions units being modified, according to paragraphs 

(a)(7)(iv)( c ) through ( f ) of this section. The procedure for calculating (before 

beginning actual construction) whether a significant net emissions increase will 

occur at the major stationary source ( i.e. , the second step of the process) is 

contained in the definition in paragraph (b)(3) of this section. Regardless of any 

such preconstruction projections, a major modification results if the project causes 

a significant emissions increase and a significant net emissions increase.

( c ) Actual-to-projected-actual applicability test for projects that only involve 

existing emissions units. A significant emissions increase of a regulated NSR 

pollutant is projected to occur if the sum of the difference between the projected 

actual emissions (as defined in paragraph (b)(40) of this section) and the baseline 

actual emissions (as defined in paragraphs (b)(47)(i) and (ii) of this section) for 

each existing emissions unit, equals or exceeds the significant amount for that 

pollutant (as defined in paragraph (b)(23) of this section).

( d ) Actual-to-potential test for projects that only involve construction of a new 

emissions unit(s). A significant emissions increase of a regulated NSR pollutant is 

projected to occur if the sum of the difference between the potential to emit (as 

defined in paragraph (b)(4) of this section) from each new emissions unit following 

completion of the project and the baseline actual emissions (as defined in 

paragraph (b)(47)(iii) of this section) of these units before the project equals or 

exceeds the significant amount for that pollutant (as defined in paragraph (b)(23) 

of this section).

( e ) [Reserved]

( f ) Hybrid test for projects that involve multiple types of emissions units. A 

significant emissions increase of a regulated NSR pollutant is projected to occur if 

the sum of the emissions increases for each emissions unit, using the method 

specified in paragraphs (a)(7)(iv)( c ) through ( d ) of this section as applicable 

with respect to each emissions unit, for each type of emissions unit equals or 

exceeds the significant amount for that pollutant (as defined in paragraph (b)(23) 

of this section).

40 CFR 52.21(a)(2) as 

incorporated into Rule 26.13, 

the PSD Rule
Page 3 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(v) The plan shall require that for any major stationary source for a PAL for a 

regulated NSR pollutant, the major stationary source shall comply with requirements 

under paragraph (w) of this section.

(b) Definitions (b) Definitions. All State plans shall use the following definitions for the purposes of this 

section. Deviations from the following wording will be approved only if the State 

specifically demonstrates that the submitted definition is more stringent, or at least as 

stringent, in all respects as the corresponding definitions below:

(b)(1) Major stationary 

source

(1)(i) Major stationary source means:

( a ) Any of the following stationary sources of air pollutants which emits, or has 

the potential to emit, 100 tons per year or more of any regulated NSR pollutant: 

Fossil fuel-fired steam electric plants of more than 250 million British thermal units 

per hour heat input, coal cleaning plants (with thermal dryers), kraft pulp mills, 

Portland cement plants, primary zinc smelters, iron and steel mill plants, primary 

aluminum ore reduction plants (with thermal dryers), primary copper smelters, 

municipal incinerators capable of charging more than 250 tons of refuse per day, 

hydrofluoric, sulfuric, and nitric acid plants, petroleum refineries, lime plants, 

phosphate rock processing plants, coke oven batteries, sulfur recovery plants, 

carbon black plants (furnace process), primary lead smelters, fuel conversion 

plants, sintering plants, secondary metal production plants, chemical process plants 

(which does not include ethanol production facilities that produce ethanol by natural 

fermentation included in NAICS codes 325193 or 312140), fossil-fuel boilers (or 

combinations thereof) totaling more than 250 million British thermal units per hour 

heat input, petroleum storage and transfer units with a total storage capacity 

exceeding 300,000 barrels, taconite ore processing plants, glass fiber processing 

plants, and charcoal production plants;

( b ) Notwithstanding the stationary source size specified in paragraph (b)(1)(i)( a 

) of this section, any stationary source which emits, or has the potential to emit, 

250 tons per year or more of a regulated NSR pollutant; or

( c ) Any physical change that would occur at a stationary source not otherwise 

qualifying under paragraph (b)(1) of this section, as a major stationary source if 

the change would constitute a major stationary source by itself.

(ii) A major source that is major for volatile organic compounds or NOX shall be 

considered major for ozone.

(iii) The fugitive emissions of a stationary source shall not be included in determining 

for any of the purposes of this section whether it is a major stationary source, unless 

the source belongs to one of the following categories of stationary sources:

( a ) Coal cleaning plants (with thermal dryers);

( b ) Kraft pulp mills;

( c ) Portland cement plants;

( d ) Primary zinc smelters;

( e ) Iron and steel mills;

( f ) Primary aluminum ore reduction plants;

( g ) Primary copper smelters;

( h ) Municipal incinerators capable of charging more than 250 tons of refuse per 

day;

( i ) Hydrofluoric, sulfuric, or nitric acid plants;

( j ) Petroleum refineries;

( k ) Lime plants;

( l ) Phosphate rock processing plants;

( m ) Coke oven batteries;

( n ) Sulfur recovery plants;

( o ) Carbon black plants (furnace process);

( p ) Primary lead smelters;

( q ) Fuel conversion plants;

( r ) Sintering plants;

( s ) Secondary metal production plants;

40 CFR 52.21(b)(1) as 

incorporated into the PSD Rule
Page 4 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

( t ) Chemical process plants—The term chemical processing plant shall not include 

ethanol production facilities that produce ethanol by natural fermentation included 

in NAICS codes 325193 or 312140;

( u ) Fossil-fuel boilers (or combination thereof) totaling more than 250 million 

British thermal units per hour heat input;

( v ) Petroleum storage and transfer units with a total storage capacity exceeding 

300,000 barrels;

( w ) Taconite ore processing plants;

( x ) Glass fiber processing plants;

( y ) Charcoal production plants;

( z ) Fossil fuel-fired steam electric plants of more that 250 million British thermal 

units per hour heat input;

( aa ) Any other stationary source category which, as of August 7, 1980, is being 

regulated under section 111 or 112 of the Act.

(b)(2) Major modification (2)(i) 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 emissions 

increase (as defined in paragraph (b)(39) of this section) of a regulated NSR pollutant 

(as defined in paragraph (b)(49) of this section); and a significant net emissions 

increase of that pollutant from the major stationary source.

(ii) Any significant emissions increase (as defined at paragraph (b)(39) of this 

section) from any emissions units or net emissions increase (as defined in paragraph 

(b)(3) of this section) at a major stationary source that is significant for volatile 

organic compounds or NOX shall be considered significant for ozone.

(iii) A physical change or change in the method of operation shall not include:

( a ) Routine maintenance, repair and replacement. Routine maintenance, repair 

and replacement shall include, but not be limited to, any activity(s) that meets the 

requirements of the equipment replacement provisions contained in paragraph (y) 

of this section;

Note to paragraph (b)(2)(iii)( a ): On December 24, 2003, the second sentence of 

this paragraph (b)(2)(iii)( a ) is stayed indefinitely by court order. The stayed 

provisions will become effective immediately if the court terminates the stay. At 

that time, EPA will publish a document in the Federal Register advising the public 

of the termination of the stay.

( b ) Use of an alternative fuel or raw material by reason of any order under 

section 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 plan 

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 §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 §51.166.

( g ) Any change in ownership at a stationary source.

( h ) [Reserved]

( i ) The installation, operation, cessation, or removal of a temporary clean coal 

technology demonstration project, provided that the project complies with:

( 1 ) The State implementation plan for the State in which the project is located; 

and

( 2 ) Other requirements necessary to attain and maintain the national ambient 

air quality standards during the project and after it is terminated.

40 CFR 52.21(b)(2) as 

incorporated into the PSD Rule
Page 5 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

( j ) The installation or operation of a permanent clean coal technology 

demonstration project that constitutes repowering, provided that the project does 

not result in an increase in the potential to emit of any regulated pollutant emitted 

by the unit. This exemption shall apply on a pollutant-by-pollutant basis.

( k ) The reactivation of a very clean coal-fired electric utility steam generating 

unit.

(iv) This definition shall not apply with respect to a particular regulated NSR pollutant 

when the major stationary source is complying with the requirements under 

paragraph (w) of this section for a PAL for that pollutant. Instead, the definition at 

paragraph (w)(2)(viii) of this section shall apply.

(v) 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 (b)(1)(iii) of this section. NOTE: By court 

order, this provision has been stayed indefinitely.

(b)(3) Net emissions 

increase

(3)(i) Net emissions increase means, with respect to any regulated NSR pollutant 

emitted by a major stationary source, the amount by which the sum of the following 

exceeds zero:

( a ) The increase in emissions from a particular physical change or change in the 

method of operation at a stationary source as calculated pursuant to paragraph 

(a)(7)(iv) of this section; and

( b ) Any other increases and decreases in actual emissions at the major stationary 

source that are contemporaneous with the particular change and are otherwise 

creditable. Baseline actual emissions for calculating increases and decreases under 

this paragraph (b)(3)(i)( b ) shall be determined as provided in paragraph (b)(47), 

except that paragraphs (b)(47)(i)( c ) and (b)(47)(ii)( d ) of this section shall not 

apply.

(ii) An increase or decrease in actual emissions is contemporaneous with the increase 

from the particular change only if it occurs within a reasonable period (to be specified 

by the State) before the date that the increase from the particular change occurs.

(iii) An increase or decrease in actual emissions is creditable only if:

( a ) It occurs within a reasonable period (to be specified by the reviewing 

authority); and

( b ) The reviewing authority has not relied on it in issuing a permit for the source 

under regulations approved pursuant to this section, which permit is in effect when 

the increase in actual emissions from the particular change occurs; and

( c ) The increase or decrease in emissions did not occur at a Clean Unit, except as 

provided in paragraphs (t)(8) and (u)(10) of this section.

( d ) As it pertains to an increase or decrease in fugitive emissions (to the extent 

quantifiable), it occurs at an emissions unit that is part of one of the source 

categories listed in paragraph (b)(1)(iii) of this section or it occurs at an emission 

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

source categories. Fugitive emission increases or decreases 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 paragraph (b)(1)(iii) of this section and 

that are not, by themselves, part of a listed source category. NOTE: This paragraph 

has been stayed by court order indefinitely.

(iv) An increase or decrease in actual emissions of sulfur dioxide, particulate matter, 

or nitrogen oxides that 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.

(v) An increase in actual emissions is creditable only to the extent that the new level 

of actual emissions exceeds the old level.

(vi) 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 enforceable as a practical matter at and after the time that actual 

construction on the particular change begins;

( c ) It has approximately the same qualitative significance for public health and 

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

40 CFR 52.21(b)(3) as 

incorporated into the PSD Rule
Page 6 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(vii) 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.

(viii) Paragraph (b)(21)(ii) of this section shall not apply for determining creditable 

increases and decreases.

(b)(4) Potential to emit (4) Potential to emit means the maximum capacity of a stationary source to emit a 

pollutant under its physical and operational design. Any physical or operational 

limitation on the capacity of the source to emit a pollutant, including air pollution control 

equipment and restrictions on hours of operation or on the type or amount of material 

combusted, stored, or processed, shall be treated as part of its design if the limitation 

or the effect it would have on emissions is federally enforceable. Secondary emissions 

do not count in determining the potential to emit of a stationary source.

40 CFR 52.21(b)(4) as 

incorporated into the PSD Rule

(b)(5) Stationary source (5) Stationary source means any building, structure, facility, or installation which emits 

or may emit a regulated NSR pollutant.

40 CFR 52.21(b)(5) as 

incorporated into the PSD Rule

(b)(6) Building, 

structure, facility, 

or installation

(6) Building, structure, facility, or installation means all of the pollutant-emitting 

activities which belong to the same industrial grouping, are located on one or more 

contiguous or adjacent properties, and are under the control of the same person (or 

persons under common control) except the activities of any vessel. Pollutant-emitting 

activities shall be considered as part of the same industrial grouping if they belong to 

the same Major Group ( i.e. , which have the same two-digit code) as described in the 

Standard Industrial Classification Manual, 1972, as amended by the 1977 Supplement 

(U.S. Government Printing Office stock numbers 4101–0066 and 003–005–00176–0, 

respectively).

40 CFR 52.21(b)(6) as 

incorporated into the PSD Rule

(b)(7) Emissions unit (7) Emissions unit means any part of a stationary source that emits or would have the 

potential to emit any regulated NSR pollutant and includes an electric utility steam 

generating unit as defined in paragraph (b)(30) of this section. For purposes of this 

section, there are two types of emissions units as described in paragraphs (b)(7)(i) and 

(ii) of this section.

(i) A new emissions unit is any emissions unit that is (or will be) newly constructed 

and that has existed for less than 2 years from the date such emissions unit first 

operated.

(ii) An existing emissions unit is any emissions unit that does not meet the 

requirements in paragraph (b)(7)(i) of this section. A replacement unit, as defined in 

paragraph (b)(32) of this section, is an existing emissions unit.

(b)(8) Construction (8) Construction means any physical change or change in the method of operation 

(including fabrication, erection, installation, demolition, or modification of an emissions 

unit) that would result in a change in emissions.

40 CFR 52.21(b)(8) as 

incorporated into the PSD Rule

(b)(9) Commence (9) Commence as applied to construction of a major stationary source or major 

modification means that the owner or operator has all necessary preconstruction 

approvals or permits and either has:

(i) Begun, or caused to begin, a continuous program of actual on-site construction of 

the source, to be completed within a reasonable time; or

(ii) Entered into binding agreements or contractual obligations, which cannot be 

cancelled or modified without substantial loss to the owner or operator, to undertake 

a program of actual construction of the source to be completed within a reasonable 

time.

(b)(10) Necessary 

preconstruction 

approvals or 

permits

(10) Necessary preconstruction approvals or permits means those permits or approvals 

required under Federal air quality control laws and regulations and those air quality 

control laws and regulations which are part of the applicable State Implementation Plan.

40 CFR 52.21(b)(10) as 

incorporated into the PSD Rule

(b)(11) Begin actual 

construction

(11) Begin actual construction means, in general, initiation of physical on-site 

construction activities on an emissions unit which are of a permanent nature. Such 

activities include, but are not limited to, installation of building supports and 

foundations, laying of underground pipework, and construction of permanent storage 

structures. With respect to a change in method of operation this term refers to those onsite activities, other than preparatory activities, which mark the initiation of the change.

40 CFR 52.21(b)(11) as 

incorporated into the PSD Rule

40 CFR 52.21(b)(9) as 

incorporated into the PSD Rule

40 CFR 52.21(b)(7) as 

incorporated into the PSD Rule
Page 7 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(b)(12) Best available 

control technology

(12) Best available control technology means an emissions limitation (including a 

visible emissions standard) based on the maximum degree of reduction for each a 

regulated NSR pollutant which would be emitted from any proposed major stationary 

source or major modification which the reviewing authority, on a case-by-case basis, 

taking into account energy, environmental, and economic impacts and other costs, 

determines is achievable for such source or modification through application of 

production processes or available methods, systems, and techniques, including fuel 

cleaning or treatment or innovative fuel combination techniques for control of such 

pollutant. In no event shall application of best available control technology result in 

emissions of any pollutant which would exceed the emissions allowed by any applicable 

standard under 40 CFR parts 60 and 61. If the reviewing authority determines that 

technological or economic limitations on the application of measurement methodology 

to a particular emissions unit would make the imposition of an emissions standard 

infeasible, a design, equipment, work practice, operational standard or combination 

thereof, may be prescribed instead to satisfy the requirement for the application of best 

available control technology. Such standard shall, to the degree possible, set forth the 

emissions reduction achievable by implementation of such design, equipment, work 

practice or operation, and shall provide for compliance by means which achieve 

equivalent results.

40 CFR 52.21(b)(12) as 

incorporated into the PSD Rule

(b)(13) Baseline 

concentration

(13)(i) Baseline concentration means that ambient concentration level that exists in the 

baseline area at the time of the applicable minor source baseline date. A baseline 

concentration is determined for each pollutant for which a minor source baseline date is 

established and shall include:

( a ) The actual emissions, as defined in paragraph (b)(21) of this section, 

representative of sources in existence on the applicable minor source baseline date, 

except as provided in paragraph (b)(13)(ii) of this section;

( b ) The allowable emissions of major stationary sources that commenced 

construction before the major source baseline date, but were not in operation by 

the applicable minor source baseline date.

(ii) The following will not be included in the baseline concentration and will affect the 

applicable maximum allowable increase(s):

( a ) Actual emissions, as defined in paragraph (b)(21) of this section, from any 

major stationary source on which construction commenced after the major source 

baseline date; and

( b ) Actual emissions increases and decreases, as defined in paragraph (b)(21) of 

this section, at any stationary source occurring after the minor source baseline 

date.

(b)(14) Major source 

baseline date

(14)(i) Major source baseline date means:

( a ) In the case of PM10and sulfur dioxide, January 6, 1975;

( b ) In the case of nitrogen dioxide, February 8, 1988; and

( c ) In the case of PM2.5,October 20, 2010.

(ii) Minor source baseline date means the earliest date after the trigger date on 

which a major stationary source or a major modification subject to 40 CFR 52.21 or 

to regulations approved pursuant to 40 CFR 51.166 submits a complete application 

under the relevant regulations. The trigger date is:

( a ) In the case of PM10and sulfur dioxide, August 7, 1977;

( b ) In the case of nitrogen dioxide, February 8, 1988; and

( c ) In the case of PM2.5,October 20, 2011.

(iii) The baseline date is established for each pollutant for which increments or other 

equivalent measures have been established if:

( a ) The area in which the proposed source or modification would construct is 

designated as attainment or unclassifiable under section 107(d)(1)(A)(ii) or (iii) of 

the Act for the pollutant on the date of its complete application under 40 CFR 52.21 

or under regulations approved pursuant to 40 CFR 51.166; and

( b ) In the case of a major stationary source, the pollutant would be emitted in 

significant amounts, or, in the case of a major modification, there would be a 

significant net emissions increase of the pollutant.

k

40 CFR 52.21(b)(13) as 

incorporated into the PSD Rule

40 CFR 52.21(b)(14) as 

incorporated into the PSD Rule
Page 8 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(b)(15) Baseline area (15)(i) Baseline area means any intrastate area (and every part thereof) designated as 

attainment or unclassifiable under section 107(d)(1)(A)(ii) or (iii) of the Act in which 

the major source or major modification establishing the minor source baseline date 

would construct or would have an air quality impact for the pollutant for which the 

baseline date is established, as follows: Equal to or greater than 1 μg/m3 (annual 

average) for SO2,NO2, or PM10; or equal or greater than 0.3 μg/m3 (annual average) for 

PM2.5.

(ii) Area redesignations under section 107(d)(1)(A)(ii) or (iii) of the Act cannot 

intersect or be smaller than the area of impact of any major stationary source or 

major modification which:

( a ) Establishes a minor source baseline date; or

( b ) Is subject to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 

51.166, and would be constructed in the same State as the State proposing the 

redesignation.

(iii) Any baseline area established originally for the TSP increments shall remain in 

effect and shall apply for purposes of determining the amount of available PM–10 

increments, except that such baseline area shall not remain in effect if the permit 

authority rescinds the corresponding minor source baseline date in accordance with 

paragraph (b)(14)(iv) of this section.

(b)(16) Allowable 

emissions

(16) Allowable emissions means the emissions rate of a stationary source calculated 

using the maximum rated capacity of the source (unless the source is subject to 

federally enforceable limits which restrict the operating rate, or hours of operation, or 

both) and the most stringent of the following:

(i) The applicable standards as set forth in 40 CFR parts 60 and 61;

(ii) The applicable State Implementation Plan emissions limitation, including those 

with a future compliance date; or

(iii) The emissions rate specified as a federally enforceable permit condition.

(b)(17) Federally 

enforceable

(17) Federally enforceable means all limitations and conditions which are enforceable 

by the Administrator, including those requirements developed pursuant to 40 CFR parts 

60 and 61, requirements within any applicable State implementation plan, any permit 

requirements established pursuant to 40 CFR 52.21 or under regulations approved 

pursuant to 40 CFR part 51, subpart I, including operating permits issued under an EPAapproved program that is incorporated into the State implementation plan and 

expressly requires adherence to any permit issued under such program.

40 CFR 52.21(b)(17) as 

incorporated into the PSD 

Rule. The PSD Rule revises 

the term "Administrator" in 40 

CFR 52.21(b)(17) to mean the 

EPA Administrator consistent 

with 51.166.

(b)(18) Secondary 

emissions

(18) Secondary emissions means emissions which occur as a result of the construction 

or operation of a major stationary source or major modification, but do not come from 

the major stationary source or major modification itself. For the purposes of this 

section, secondary emissions must be specific, well defined, quantifiable, and impact 

the same general areas the stationary source modification which causes the secondary 

emissions. Secondary emissions include emissions from any offsite support facility 

which would not be constructed or increase its emissions except as a result of the 

construction or operation of the major stationary source or major modification. 

Secondary emissions do not include any emissions which come directly from a mobile 

source, such as emissions from the tailpipe of a motor vehicle, from a train, or from a 

vessel.

40 CFR 52.21(b)(18) as 

incorporated into the PSD Rule

(b)(19) Innovative control 

technology

(19) Innovative control technology means any system of air pollution control that has 

not been adequately demonstrated in practice, but would have a substantial likelihood 

of achieving greater continuous emissions reduction than any control system in current 

practice or of achieving at least comparable reductions at lower cost in terms of energy, 

economics, or nonair quality environmental impacts.

40 CFR 52.21(b)(19) as 

incorporated into the PSD Rule

(b)(20) Fugitive emissions (20) Fugitive emissions means those emissions which could not reasonably pass 

through a stack, chimney, vent, or other functionally equivalent opening.

40 CFR 52.21(b)(20) as 

incorporated into the PSD Rule

(b)(21) Actual emissions (21)(i) Actual emissions means the actual rate of emissions of a regulated NSR 

pollutant from an emissions unit, as determined in accordance with paragraphs 

(b)(21)(ii) through (iv) of this section, except that this definition shall not apply for 

calculating whether a significant emissions increase has occurred, or for establishing a 

PAL under paragraph (w) of this section. Instead, paragraphs (b)(40) and (b)(47) of 

this section shall apply for those purposes.

40 CFR 52.21(b)(15) as 

incorporated into the PSD Rule

40 CFR 52.21(b)(16) as 

incorporated into the PSD Rule

40 CFR 52.21(b)(21) as 

incorporated into the PSD Rule
Page 9 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(ii) 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 consecutive 24-

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

normal source operation. The reviewing authority 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.

(iii) The reviewing authority may presume that source-specific allowable emissions for 

the unit are equivalent to the actual emissions of the unit.

(iv) For any emissions unit that has not begun normal operations on the particular 

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

(b)(22) Complete (22) Complete means, in reference to an application for a permit, that the application 

contains all the information necessary for processing the application. Designating an 

application complete for purposes of permit processing does not preclude the reviewing 

authority from requesting or accepting any additional information.

40 CFR 52.21(b)(22) as 

incorporated into the PSD Rule

(b)(23) Significant (23)(i) Significant means, in reference to a net emissions increase or the potential of a 

source to emit any of the following pollutants, a rate of emissions that would equal or 

exceed any of the following rates:

Pollutant and Emissions Rate

Carbon monoxide: 100 tons per year (tpy)

Nitrogen oxides: 40 tpy

Sulfur dioxide: 40 tpy

Particulate matter: 25 tpy of particulate matter emissions. 15 tpy of PM10emissions

PM2.5: 10 tpy of direct PM2.5emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of 

nitrogen oxide emissions unless demonstrated not to be a PM2.5precursor under 

paragraph (b)(49) of this section

Ozone: 40 tpy of volatile organic compounds or nitrogen oxides

Lead: 0.6 tpy

Fluorides: 3 tpy

Sulfuric acid mist: 7 tpy

Hydrogen sulfide (H2S): 10 tpy

Total reduced sulfur (including H2S): 10 tpy

Reduced sulfur compounds (including H2S): 10 tpy

Municipal waste combustor organics (measured as total tetra-through octachlorinated dibenzo-p-dioxins and dibenzofurans): 3.2 × 10–−6megagrams per year 

(3.5 × 10−6tons per year)

Municipal waste combustor metals (measured as particulate matter): 14 

megagrams per year (15 tons per year)

Municipal waste combustor acid gases (measured as sulfur dioxide and hydrogen 

chloride): 36 megagrams per year (40 tons per year)

Municipal solid waste landfill emissions (measured as nonmethane organic 

compounds): 45 megagrams per year (50 tons per year)

(ii) Significant means, in reference to a net emissions increase or the potential of a 

source to emit a regulated NSR pollutant that paragraph (b)(23)(i) of this section, 

does not list, any emissions rate.

(iii) Notwithstanding paragraph (b)(23)(i) of this section, significant means any 

emissions rate or any net emissions increase associated with a major stationary 

source or major modification, which would construct within 10 kilometers of a Class I 

area, and have an impact on such area equal to or greater than 1 μg/m3 (24-hour 

average).

(b)(24) Federal Land 

Manager

(24) Federal Land Manager means, with respect to any lands in the United States, the 

Secretary of the department with authority over such lands.

40 CFR 52.21(b)(24) as 

incorporated into the PSD Rule

(b)(25) High terrain (25) High terrain means any area having an elevation 900 feet or more above the base 

of the stack of a source.

40 CFR 52.21(b)(25) as 

incorporated into the PSD Rule

(b)(26) Low terrain (26) Low terrain means any area other than high terrain. 40 CFR 52.21(b)(26) as 

incorporated into the PSD Rule

(b)(27) Indian Reservation (27) Indian Reservation means any federally recognized reservation established by 

Treaty, Agreement, Executive Order, or Act of Congress.

40 CFR 52.21(b)(27) as 

incorporated into the PSD Rule

()() 

incorporated into the PSD Rule

40 CFR 52.21(b)(23) as 

incorporated into the PSD Rule
Page 10 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(b)(28) Indian Governing 

Body

(28) Indian Governing Body means the governing body of any tribe, band, or group of 

Indians subject to the jurisdiction of the United States and recognized by the United 

States as possessing power of self-government.

40 CFR 52.21(b)(28) as 

incorporated into the PSD Rule

(b)(29) VOC (29) Volatile organic compounds (VOC) is as defined in §51.100(s) of this part. 40 CFR 52.21(b)(30) as 

incorporated into the PSD Rule

(b)(30) Electric utility 

steam generating 

unit

(30) Electric utility steam generating unit means any steam electric generating unit 

that is constructed for the purpose of supplying more than one-third of its potential 

electric output capacity and more than 25 MW electrical output to any utility power 

distribution system for sale. Any steam supplied to a steam distribution system for the 

purpose of providing steam to a steam-electric generator that would produce electrical 

energy for sale is also considered in determining the electrical energy output capacity of 

the affected facility.

40 CFR 52.21(b)(31) as 

incorporated into the PSD Rule

(b)(31) (31) [Reserved]

(b)(32) Replacement unit (32) Replacement unit means an emissions unit for which all the criteria listed in 

paragraphs (b)(32)(i) through (iv) of this section are met. No creditable emission 

reductions shall be generated from shutting down the existing emissions unit that is 

replaced.

(i) The emissions unit is a reconstructed unit within the meaning of §60.15(b)(1) of 

this chapter, or the emissions unit completely takes the place of an existing emissions 

unit.

(ii) The emissions unit is identical to or functionally equivalent to the replaced 

emissions unit.

(iii) The replacement does not change the basic design parameter(s) (as discussed in 

paragraph (y)(2) of this section) of the process unit.

(iv) The replaced emissions unit is permanently removed from the major stationary 

source, otherwise permanently disabled, or permanently barred from operation by a 

permit that is enforceable as a practical matter. If the replaced emissions unit is 

brought back into operation, it shall constitute a new emissions unit.

(b)(33) Clean coal 

technology 

(33) Clean coal technology means any technology, including technologies applied at the 

precombustion, combustion, or post combustion stage, at a new or existing facility 

which will achieve significant reductions in air emissions of sulfur dioxide or oxides of 

nitrogen associated with the utilization of coal in the generation of electricity, or process 

steam which was not in widespread use as of November 15, 1990.

40 CFR 52.21(b)(34) as 

incorporated into the PSD Rule

(b)(34) Clean coal 

technology 

demonstration 

project

(34) Clean coal technology demonstration project means a project using funds 

appropriated under the heading “Department of Energy—Clean Coal Technology”, up to 

a total amount of $2,500,000,000 for commercial demonstration of clean coal 

technology, or similar projects funded through appropriations for the Environmental 

Protection Agency. The Federal contribution for a qualifying project shall be at least 20 

percent of the total cost of the demonstration project.

40 CFR 52.21(b)(35) as 

incorporated into the PSD Rule

(b)(35) Temporary clean 

coal technology 

demonstration 

project

(35) Temporary clean coal technology demonstration project means a clean coal 

technology demonstration project that is operated for a period of 5 years or less, and 

which complies with the State implementation plan for the State in which the project is 

located and other requirements necessary to attain and maintain the national ambient 

air quality standards during and after the project is terminated.

40 CFR 52.21(b)(36) as 

incorporated into the PSD Rule

(b)(36) Repowering (36)(i) Repowering means replacement of an existing coal-fired boiler with one of the 

following clean coal technologies: atmospheric or pressurized fluidized bed combustion, 

integrated gasification combined cycle, magnetohydrodynamics, direct and indirect coalfired turbines, integrated gasification fuel cells, or as determined by the Administrator, 

in consultation with the Secretary of Energy, a derivative of one or more of these 

technologies, and any other technology capable of controlling multiple combustion 

emissions simultaneously with improved boiler or generation efficiency and with 

significantly greater waste reduction relative to the performance of technology in 

widespread commercial use as of November 15, 1990.

(ii) Repowering shall also include any oil and/or gas-fired unit which has been 

awarded clean coal technology demonstration funding as of January 1, 1991, by the 

Department of Energy.

(iii) The reviewing authority shall give expedited consideration to permit applications 

for any source that satisfies the requirements of this subsection and is granted an 

extension under section 409 of the Clean Air Act.

(b)(37) Reactivation (37) Reactivation of a very clean coal-fired electric utility steam generating unit means 

any physical change or change in the method of operation associated with the 

commencement of commercial operations by a coal-fired utility unit after a period of 

discontinued operation where the unit:

40 CFR 52.21(b)(33) as 

incorporated into the PSD Rule

40 CFR 52.21(b)(37) as 

incorporated into the PSD 

Rule. The PSD Rule revises 

the term "Administrator" in 40 

CFR 52.21(b)(37)(i) to mean 

the EPA Administrator 

consistent with 51.166.

40 CFR 52.21(b)(38) as 

incorporated into the PSD Rule
Page 11 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(i) Has not been in operation for the two-year period prior to the enactment of the 

Clean Air Act Amendments of 1990, and the emissions from such unit continue to be 

carried in the permitting authority's emissions inventory at the time of enactment;

(ii) Was equipped prior to shutdown with a continuous system of emissions control 

that achieves a removal efficiency for sulfur dioxide of no less than 85 percent and a 

removal efficiency for particulates of no less than 98 percent;

(iii) Is equipped with low-NOX burners prior to the time of commencement of 

operations following reactivation; and

(iv) Is otherwise in compliance with the requirements of the Clean Air Act.

(b)(38) Pollution 

prevention

(38) Pollution prevention means any activity that through process changes, product 

reformulation or redesign, or substitution of less polluting raw materials, eliminates or 

reduces the release of air pollutants (including fugitive emissions) and other pollutants 

to the environment prior to recycling, treatment, or disposal; it does not mean recycling 

(other than certain “in-process recycling” practices), energy recovery, treatment, or 

disposal.

40 CFR 52.21(b)(39) as 

incorporated into the PSD Rule

(b)(39) Significant 

emissions increase

(39) Significant emissions increase means, for a regulated NSR pollutant, an increase 

in emissions that is significant (as defined in paragraph (b)(23) of this section) for that 

pollutant.

40 CFR 52.21(b)(40) as 

incorporated into the PSD Rule

(b)(40) Projected actual 

emissions

(40)(i) Projected actual emissions means the maximum annual rate, in tons per year, 

at which an existing emissions unit is projected to emit a regulated NSR pollutant in any 

one of the 5 years (12-month period) following the date the unit resumes regular 

operation after the project, or in any one of the 10 years following that date, if the 

project involves increasing the emissions unit's design capacity or its potential to emit 

that regulated NSR pollutant, and full utilization of the unit would result in a significant 

emissions increase, or a significant net emissions increase at the major stationary 

source.

(ii) In determining the projected actual emissions under paragraph (b)(40)(i) of this 

section (before beginning actual construction), the owner or operator of the major 

stationary source:

( a ) Shall consider all relevant information, including but not limited to, historical 

operational data, the company's own representations, the company's expected 

business activity and the company's highest projections of business activity, the 

company's filings with the State or Federal regulatory authorities, and compliance 

plans under the approved plan; and

( b ) Shall include fugitive emissions to the extent quantifiable, and emissions 

associated with startups, shutdowns, and malfunctions; and

( c ) Shall exclude, in calculating any increase in emissions that results from the 

particular project, that portion of the unit's emissions following the project that an 

existing unit could have accommodated during the consecutive 24-month period 

used to establish the baseline actual emissions under paragraph (b)(47) of this 

section and that are also unrelated to the particular project, including any increased 

utilization due to product demand growth; or,

( d ) In lieu of using the method set out in paragraphs (b)(40)(ii)( a ) through ( c 

) of this section, may elect to use the emissions unit's potential to emit, in tons per 

year, as defined under paragraph (b)(4) of this section.

(b)(41) (41) [Reserved]

(b)(42) PSD Program (42) Prevention of Significant Deterioration Program (PSD) program means a major 

source preconstruction permit program that has been approved by the Administrator 

and incorporated into the plan to implement the requirements of this section, or the 

program in §52.21 of this chapter. Any permit issued under such a program is a major 

NSR permit.

40 CFR 52.21(b)(43) as 

incorporated into the PSD 

Rule. The PSD Rule revises 

the term "Administrator" in 40 

CFR 52.21(b)(43) to mean the 

EPA Administrator consistent 

with 51.166.

(b)(43) CEMS (43) Continuous emissions monitoring system (CEMS) means all of the equipment that 

may be required to meet the data acquisition and availability requirements of this 

section, to sample, condition (if applicable), analyze, and provide a record of emissions 

on a continuous basis.

40 CFR 52.21(b)(44) as 

incorporated into the PSD Rule

(b)(44) PEMS (44) Predictive emissions monitoring system (PEMS) means all of the equipment 

necessary to monitor process and control device operational parameters (for example, 

control device secondary voltages and electric currents) and other information (for 

example, gas flow rate, O2 or CO2 concentrations), and calculate and record the mass 

emissions rate (for example, lb/hr) on a continuous basis.

40 CFR 52.21(b)(45) as 

incorporated into the PSD Rule

40 CFR 52.21(b)(38) as 

incorporated into the PSD Rule

40 CFR 52.21(b)(41) as 

incorporated into the PSD Rule
Page 12 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(b)(45) CPMS (45) Continuous parameter monitoring system (CPMS) means all of the equipment 

necessary to meet the data acquisition and availability requirements of this section, to 

monitor process and control device operational parameters (for example, control device 

secondary voltages and electric currents) and other information (for example, gas flow 

rate, O2 or CO2 concentrations), and to record average operational parameter value(s) 

on a continuous basis.

40 CFR 52.21(b)(46) as 

incorporated into the PSD Rule

(b)(46) CERMS (46) Continuous emissions rate monitoring system (CERMS) means the total 

equipment required for the determination and recording of the pollutant mass emissions 

rate (in terms of mass per unit of time).

40 CFR 52.21(b)(47) as 

incorporated into the PSD Rule

(b)(47) Baseline actual 

emissions

(47) Baseline actual emissions means the rate of emissions, in tons per year, of a 

regulated NSR pollutant, as determined in accordance with paragraphs (b)(47)(i) 

through (iv) of this section.

(i) For any existing electric utility steam generating unit, baseline actual emissions 

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

pollutant during any consecutive 24-month period selected by the owner or operator 

within the 5-year period immediately preceding when the owner or operator begins 

actual construction of the project. The reviewing authority shall allow the use of a 

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

source operation.

( a ) The average rate shall include fugitive emissions to the extent quantifiable, 

and emissions associated with startups, shutdowns, and malfunctions.

( b ) The average rate shall be adjusted downward to exclude any non-compliant 

emissions that occurred while the source was operating above an emission 

limitation that was legally enforceable during the consecutive 24-month period.

( c ) For a regulated NSR pollutant, when a project involves multiple emissions 

units, only one consecutive 24-month period must be used to determine the 

baseline actual emissions for the emissions units being changed. A different 

consecutive 24-month period can be used For each regulated NSR pollutant.

( d ) The average rate shall not be based on any consecutive 24-month period for 

which there is inadequate information for determining annual emissions, in tons per 

year, and for adjusting this amount if required by paragraph (b)(47)(i)( b ) of this 

section.

(ii) For an existing emissions unit (other than an electric utility steam generating 

unit), baseline actual emissions means the average rate, in tons per year, at which 

the emissions unit actually emitted the pollutant during any consecutive 24-month 

period selected by the owner or operator within the 10-year period immediately 

preceding either the date the owner or operator begins actual construction of the 

project, or the date a complete permit application is received by the reviewing 

authority for a permit required either under this section or under a plan approved by 

the Administrator, whichever is earlier, except that the 10-year period shall not 

include any period earlier than November 15, 1990.

( a ) The average rate shall include fugitive emissions to the extent quantifiable, 

and emissions associated with startups, shutdowns, and malfunctions.

( b ) The average rate shall be adjusted downward to exclude any non-compliant 

emissions that occurred while the source was operating above an emission 

limitation that was legally enforceable during the consecutive 24-month period.

( c ) The average rate shall be adjusted downward to exclude any emissions that 

would have exceeded an emission limitation with which the major stationary source 

must currently comply, had such major stationary source been required to comply 

with such limitations during the consecutive 24-month period. However, if an 

emission limitation is part of a maximum achievable control technology standard 

that the Administrator proposed or promulgated under part 63 of this chapter, the 

baseline actual emissions need only be adjusted if the State has taken credit for 

such emissions reductions in an attainment demonstration or maintenance plan 

consistent with the requirements of §51.165(a)(3)(ii)(G).

( d ) For a regulated NSR pollutant, when a project involves multiple emissions 

units, only one consecutive 24-month period must be used to determine the 

baseline actual emissions for the emissions units being changed. A different 

consecutive 24-month period can be used For each regulated NSR pollutant.

( e ) The average rate shall not be based on any consecutive 24-month period for 

which there is inadequate information for determining annual emissions, in tons per 

year, and for adjusting this amount if required by paragraphs (b)(47)(ii)(b) and (c) 

of this section.

40 CFR 52.21(b)(48) as 

incorporated into the PSD 

Rule. The PSD Rule revises 

the term "Administrator" in 40 

CFR 52.21(b)(8)(ii)(c) to 

mean the EPA Administrator 

consistent with 51.166.
Page 13 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(iii) For a new emissions unit, the baseline actual emissions for purposes of 

determining the emissions increase that will result from the initial construction and 

operation of such unit shall equal zero; and thereafter, for all other purposes, shall 

equal the unit's potential to emit.

(iv) For a PAL for a stationary source, the baseline actual emissions shall be 

calculated for existing electric utility steam generating units in accordance with the 

procedures contained in paragraph (b)(47)(i) of this section, for other existing 

emissions units in accordance with the procedures contained in paragraph (b)(47)(ii) 

of this section, and for a new emissions unit in accordance with the procedures 

contained in paragraph (b)(47)(iii) of this section.

(b)(48) Subject to 

regulation

(48) Subject to regulation means, for any air pollutant, that the pollutant is subject to 

either a provision in the Clean Air Act, or a nationally-applicable regulation codified by 

the Administrator in subchapter C of this chapter, that requires actual control of the 

quantity of emissions of that pollutant, and that such a control requirement has taken 

effect and is operative to control, limit or restrict the quantity of emissions of that 

pollutant released from the regulated activity. Except that:

(i) Greenhouse gases (GHGs), the air pollutant defined in §86.1818–12(a) of this 

chapter as the aggregate group of six greenhouse gases: Carbon dioxide, nitrous 

oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride, shall 

not be subject to regulation except as provided in paragraphs (b)(48)(iv) through (v) 

of this section.

(ii) For purposes of paragraphs (b)(48)(iii) through (v) of this section, the term tpy 

CO 2 equivalent emissions (CO 2 e) shall represent an amount of GHGs emitted, and 

shall be computed as follows:

(a) Multiplying the mass amount of emissions (tpy), for each of the six greenhouse 

gases in the pollutant GHGs, by the gas's associated global warming potential 

published at Table A–1 to subpart A of part 98 of this chapter—Global Warming 

Potentials. For purposes of this paragraph (b)(48)(ii)(a), prior to July 21, 2014, the 

mass of the greenhouse gas carbon dioxide shall not include carbon dioxide 

emissions resulting from the combustion or decomposition of non-fossilized and 

biodegradable organic material originating from plants, animals, or microorganisms (including products, by-products, residues and waste from agriculture, 

forestry and related industries as well as the non-fossilized and biodegradable 

organic fractions of industrial and municipal wastes, including gases and liquids 

recovered from the decomposition of non-fossilized and biodegradable organic 

material).

( b ) Sum the resultant value from paragraph (b)(48)(ii)( a ) of this section for 

each gas to compute a tpy CO2e.

(iii) The term emissions increase as used in paragraphs (b)(48)(iv) through (v) of 

this section shall mean that both a significant emissions increase (as calculated using 

the procedures in (a)(7)(iv) of this section) and a significant net emissions increase 

(as defined in paragraphs (b)(3) and (b)(23) of this section) occur. For the pollutant 

GHGs, an emissions increase shall be based on tpy CO2e, and shall be calculated 

assuming the pollutant GHGs is a regulated NSR pollutant, and “significant” is defined 

as 75,000 tpy CO2e instead of applying the value in paragraph (b)(23)(ii) of this 

section.

(iv) Beginning January 2, 2011, the pollutant GHGs is subject to regulation if:

( a ) The stationary source is a new major stationary source for a regulated NSR 

pollutant that is not GHGs, and also will emit or will have the potential to emit 

75,000 tpy CO2e or more; or

( b ) The stationary source is an existing major stationary source for a regulated 

NSR pollutant that is not GHGs, and also will have an emissions increase of a 

regulated NSR pollutant, and an emissions increase of 75,000 tpy CO2e or more; 

and,

(b)(49) Regulated NSR 

pollutant

(49) Regulated NSR pollutant, for purposes of this section, means the following:

(i) Any pollutant for which a national ambient air quality standard has been 

promulgated. This includes, but is not limited to, the following:

40 CFR 52.21(b)(49) as 

incorporated into the PSD 

Rule. Note: The Biomass 

Deferral Rule was vacated by 

DC Circuit Court of Appeals on 

July 12, 2013. While the PSD 

Rule includes the Biomass 

Deferral Rule, the provision 

has expired. See discussion in 

Section V.6 of the TSD for 

additional detail. 

40 CFR 52.21(b)(50) as 

incorporated into the PSD 

Rule. The PSD Rule revises 

the term "Administrator" in 40 

CFR 52.21(b)(50)(i) to mean 

the EPA Administrator 

consistent with 51.166.
Page 14 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

( a ) PM2.5 emissions and PM10 emissions shall include gaseous emissions from a 

source or activity which condense to form particulate matter at ambient 

temperatures. On or after January 1, 2011, such condensable particulate matter 

shall be accounted for in applicability determinations and in establishing emissions 

limitations for PM2.5 and PM10 in PSD permits. Compliance with emissions 

limitations for PM2.5 and PM10 issued prior to this date shall not be based on 

condensable particulate matter unless required by the terms and conditions of the 

permit or the applicable implementation plan. Applicability determinations made 

prior to this date without accounting for condensable particulate matter shall not be 

considered in violation of this section unless the applicable implementation plan 

required condensable particulate matter to be included;

( b ) Any pollutant identified under this paragraph (b)(49)(i)( b ) as a constituent 

or precursor to a pollutant for which a national ambient air quality standard has 

been promulgated. Precursors identified by the Administrator for purposes of NSR 

are the following:

( 1 ) Volatile organic compounds and nitrogen oxides are precursors to ozone in all 

attainment and unclassifiable areas.

( 2 ) Sulfur dioxide is a precursor to PM2.5 in all attainment and unclassifiable 

areas.

( 3 ) Nitrogen oxides are presumed to be precursors to PM2.5 in all attainment and 

unclassifiable areas, unless the State demonstrates to the Administrator's 

satisfaction or EPA demonstrates that emissions of nitrogen oxides from sources in 

a specific area are not a significant contributor to that area's ambient PM2.5 

concentrations.

( 4 ) Volatile organic compounds are presumed not to be precursors to PM2.5 in 

any attainment or unclassifiable area, unless the State demonstrates to the 

Administrator's satisfaction or EPA demonstrates that emissions of volatile organic 

compounds from sources in a specific area are a significant contributor to that 

area's ambient PM2.5 concentrations.

(ii) Any pollutant that is subject to any standard promulgated under section 111 of 

the Act;

(iii) Any Class I or II substance subject to a standard promulgated under or 

established by title VI of the Act;

(iv) Any pollutant that otherwise is subject to regulation under the Act as defined in 

paragraph (b)(48) of this section.

(v) Notwithstanding paragraphs (b)(49)(i) through (iv) of this section, the term 

regulated NSR pollutant shall not include any or all hazardous air pollutants either 

listed in section 112 of the Act, or added to the list pursuant to section 112(b)(2) of 

the Act, and which have not been delisted pursuant to section 112(b)(3) of the Act, 

unless the listed hazardous air pollutant is also regulated as a constituent or 

precursor of a general pollutant listed under section 108 of the Act.

(b)(50) Reviewing 

authority

(50) Reviewing authority means the State air pollution control agency, local agency, 

other State agency, Indian tribe, or other agency authorized by the Administrator to 

carry out a permit program under §51.165 and this section, or the Administrator in the 

case of EPA-implemented permit programs under §52.21 of this chapter.

40 CFR 52.21(b)(51) as 

incorporated into the PSD 

Rule. The PSD Rule revises 

the term "Administrator" in 40 

CFR 52.21(b)(51) to mean the 

EPA Administrator consistent 

with 51.166.

(b)(51) Project (51) Project means a physical change in, or change in method of operation of, an 

existing major stationary source.

40 CFR 52.21(b)(52) as 

incorporated into the PSD Rule

(b)(52) LAER (52) Lowest achievable emission rate (LAER) is as defined in §51.165(a)(1)(xiii). 40 CFR 52.21(b)(53) as 

incorporated into the PSD Rule

(b)(53) Process unit (53)(i) In general, process unit means any collection of structures and/or equipment 

that processes, assembles, applies, blends, or otherwise uses material inputs to 

produce or store an intermediate or a completed product. A single stationary source 

may contain more than one process unit, and a process unit may contain more than 

one emissions unit.

(ii) Pollution control equipment is not part of the process unit, unless it serves a dual 

function as both process and control equipment. Administrative and warehousing 

facilities are not part of the process unit.

(iii) For replacement cost purposes, components shared between two or more 

process units are proportionately allocated based on capacity.

(iv) The following list identifies the process units at specific categories of stationary 

sources.

40 CFR 52.21(b)(50) as 

incorporated into the PSD 

Rule. The PSD Rule revises 

the term "Administrator" in 40 

CFR 52.21(b)(50)(i) to mean 

the EPA Administrator 

consistent with 51.166.

Not included in the PSD Rule. 

However, as noted below, this 

paragraph was stayed 

indefinitely by a court order.
Page 15 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

( a ) For a steam electric generating facility, the process unit consists of those 

portions of the plant that contribute directly to the production of electricity. For 

example, at a pulverized coal-fired facility, the process unit would generally be the 

combination of those systems from the coal receiving equipment through the 

emission stack (excluding post-combustion pollution controls), including the coal 

handling equipment, pulverizers or coal crushers, feedwater heaters, ash handling, 

boiler, burners, turbine-generator set, condenser, cooling tower, water treatment 

system, air preheaters, and operating control systems. Each separate generating 

unit is a separate process unit.

( b ) For a petroleum refinery, there are several categories of process units: those 

that separate and/or distill petroleum feedstocks; those that change molecular 

structures; petroleum treating processes; auxiliary facilities, such as steam 

generators and hydrogen production units; and those that load, unload, blend or 

store intermediate or completed products.

( c ) For an incinerator, the process unit would consist of components from the 

feed pit or refuse pit to the stack, including conveyors, combustion devices, heat 

exchangers and steam generators, quench tanks, and fans.

Note to paragraph (b)(53): By a court order on December 24, 2003, this 

paragraph (b)(53) is stayed indefinitely. The stayed provisions will become 

effective immediately if the court terminates the stay. At that time, EPA will publish 

a document in the Federal Register advising the public of the termination of the 

stay.

(b)(54) Functionally 

equivalent 

component

(54) Functionally equivalent component means a component that serves the same 

purpose as the replaced component.

Note to paragraph (b)(54): By a court order on December 24, 2003, this paragraph 

(b)(54) is stayed indefinitely. The stayed provisions will become effective immediately 

if the court terminates the stay. At that time, EPA will publish a document in the 

 Federal Register advising the public of the termination of the stay.

(b)(55) Fixed capital cost (55) Fixed capital cost means the capital needed to provide all the depreciable 

components. “Depreciable components” refers to all components of fixed capital cost 

and is calculated by subtracting land and working capital from the total capital 

investment, as defined in paragraph (b)(56) of this section.

Note to paragraph (b)(55): By a court order on December 24, 2003, this paragraph 

(b)(55) is stayed indefinitely. The stayed provisions will become effective immediately 

if the court terminates the stay. At that time, EPA will publish a document in the 

 Federal Register advising the public of the termination of the stay.

(b)(56) Total capital 

investment

(56) Total capital investment means the sum of the following: all costs required to 

purchase needed process equipment (purchased equipment costs); the costs of labor 

and materials for installing that equipment (direct installation costs); the costs of site 

preparation and buildings; other costs such as engineering, construction and field 

expenses, fees to contractors, startup and performance tests, and contingencies 

(indirect installation costs); land for the process equipment; and working capital for the 

process equipment.

Note to paragraph (b)(56): By a court order on December 24, 2003, this paragraph 

(b)(56) is stayed indefinitely. The stayed provisions will become effective immediately 

if the court terminates the stay. At that time, EPA will publish a document in the 

 Federal Register advising the public of the termination of the stay.

(c ) Ambient air 

increments and 

other measures

(c) Ambient air increments and other measures. 

(1) The plan shall contain emission limitations and such other measures as may be 

necessary to assure that in areas designated as Class I, II, or III, increases in pollutant 

concentrations over the baseline concentration shall be limited to the following:

[See Table 1]

For any period other than an annual period, the applicable maximum allowable increase 

may be exceeded during one such period per year at any one location.

Not included in the PSD Rule. 

However, as noted below, this 

paragraph was stayed 

indefinitely by a court order.

Not included in the PSD Rule. 

However, as noted below, this 

paragraph was stayed 

indefinitely by a court order.

Not included in the PSD Rule. 

However, as noted below, this 

paragraph was stayed 

indefinitely by a court order.

40 CFR 52.21(c) as 

incorporated into the PSD 

Rule. Note: All applicable 

provisions from Table 1 have 

been incorporated by 

reference.
Page 16 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(2) Where the State can demonstrate that it has alternative measures in its plan other 

than maximum allowable increases as defined under paragraph (c)(1) of this section, 

that satisfy the requirements in sections 166(c) and 166(d) of the Clean Air Act for a 

regulated NSR pollutant for which the Administrator has established maximum allowable 

increases pursuant to section 166(a) of the Act, the requirements for maximum 

allowable increases for that pollutant under paragraph (c)(1) of this section shall not 

apply upon approval of the plan by the Administrator. The following regulated NSR 

pollutants are eligible for such treatment:

(i) Nitrogen dioxide.

(ii) PM2.5.

(d) Ambient air 

ceilings

(d) Ambient air ceilings. The plan shall provide that no concentration of a pollutant 

shall exceed:

(1) The concentration permitted under the national secondary ambient air quality 

standard, or

(2) The concentration permitted under the national primary ambient air quality 

standard, whichever concentration is lowest for the pollutant for a period of exposure.

(e) Restrictions on 

area classifications

(e) Restrictions on area classifications. The plan shall provide that—

(1) All of the following areas which were in existence on August 7, 1977, shall be Class 

I areas and may not be redesignated:

(i) International parks,

(ii) National wilderness areas which exceed 5,000 acres in size,

(iii) National memorial parks which exceed 5,000 acres in size, and

(iv) National parks which exceed 6,000 acres in size.

(2) Areas which were redesignated as Class I under regulations promulgated before 

August 7, 1977, shall remain Class I, but may be redesignated as provided in this 

section.

(3) Any other area, unless otherwise specified in the legislation creating such an area, 

is initially designated Class II, but may be redesignated as provided in this section.

(4) The following areas may be redesignated only as Class I or II:

(i) An area which as of August 7, 1977, exceeded 10,000 acres in size and was a 

national monument, a national primitive area, a national preserve, a national 

recreational area, a national wild and scenic river, a national wildlife refuge, a national 

lakeshore or seashore; and

(ii) A national park or national wilderness area established after August 7, 1977, 

which exceeds 10,000 acres in size.

(f) Exclusions from 

increment 

consumption

(f) Exclusions from increment consumption.

(1) The plan may provide that the following concentrations shall be excluded in 

determining compliance with a maximum allowable increase:

(i) Concentrations attributable to the increase in emissions from stationary sources 

which have converted from the use of petroleum products, natural gas, or both by 

reason of an order in effect under section 2 (a) and (b) of the Energy Supply and 

Environmental Coordination Act of 1974 (or any superseding legislation) over the 

emissions from such sources before the effective date of such an order;

(ii) Concentrations attributable to the increase in emissions from sources which have 

converted from using natural gas by reason of natural gas curtailment plan in effect 

pursuant to the Federal Power Act over the emissions from such sources before the 

effective date of such plan;

(iii) Concentrations of particulate matter attributable to the increase in emissions 

from construction or other temporary emission-related activities of new or modified 

sources;

(iv) The increase in concentrations attributable to new sources outside the United 

States over the concentrations attributable to existing sources which are included in 

the baseline concentration; and

(v) Concentrations attributable to the temporary increase in emissions of sulfur 

dioxide, particulate matter, or nitrogen oxides from stationary sources which are 

affected by plan revisions approved by the Administrator as meeting the criteria 

specified in paragraph (f)(4) of this section.

Approvable, no such 

demonstration has been made

40 CFR 52.21(d) as 

incorporated into the PSD Rule

40 CFR 52.21(e) as 

incorporated into the PSD Rule

These exclusions do not 

appear in the PSD Rule and 

are not a required element of 

the PSD program, as the plan 

"may" provide for these 

exclusions.
Page 17 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(2) If the plan provides that the concentrations to which paragraph (f)(1) (i) or (ii) of 

this section, refers shall be excluded, it shall also provide that no exclusion of such 

concentrations shall apply more than five years after the effective date of the order to 

which paragraph (f)(1)(i) of this section, refers or the plan to which paragraph (f)(1)(ii) 

of this section, refers, whichever is applicable. If both such order and plan are 

applicable, no such exclusion shall apply more than five years after the later of such 

effective dates.

(3) [Reserved]

(4) For purposes of excluding concentrations pursuant to paragraph (f)(1)(v) of this 

section, the Administrator may approve a plan revision that:

(i) Specifies the time over which the temporary emissions increase of sulfur dioxide, 

particulate matter, or nitrogen oxides would occur. Such time is not to exceed 2 

years in duration unless a longer time is approved by the Administrator.

(ii) Specifies that the time period for excluding certain contributions in accordance 

with paragraph (f)(4)(i) of this section, is not renewable;

(iii) Allows no emissions increase from a stationary source which would:

( a ) Impact a Class I area or an area where an applicable increment is known to 

be violated; or

( b ) Cause or contribute to the violation of a national ambient air quality standard;

(iv) Requires limitations to be in effect the end of the time period specified in 

accordance with paragraph (f)(4)(i) of this section, which would ensure that the 

emissions levels from stationary sources affected by the plan revision would not 

exceed those levels occurring from such sources before the plan revision was 

approved.

(g) Redesignation (g) Redesignation. 

(1) The plan shall provide that all areas of the State (except as otherwise provided 

under paragraph (e) of this section) shall be designated either Class I, Class II, or Class 

III. Any designation other than Class II shall be subject to the redesignation procedures 

of this paragraph. Redesignation (except as otherwise precluded by paragraph (e) of 

this section) may be proposed by the respective States or Indian Governing Bodies, as 

provided below, subject to approval by the Administrator as a revision to the applicable 

State implementation plan.

The PSD Rule specifies 

designations through 40 CFR 

52.21(e), as incorporated by 

reference, which identifies the 

Class I areas and designates 

all other areas as Class II 

areas.

(2) The plan may provide that the State may submit to the Administrator a proposal to 

redesignate areas of the State Class I or Class II: Provided, That:

(i) At least one public hearing has been held in accordance with procedures 

established in §51.102.

(ii) Other States, Indian Governing Bodies, and Federal Land Managers whose lands 

may be affected by the proposed redesignation were notified at least 30 days prior to 

the public hearing;

(iii) A discussion of the reasons for the proposed redesignation, including a 

satisfactory description and analysis of the health, environmental, economic, social, 

and energy effects of the proposed redesignation, was prepared and made available 

for public inspection at least 30 days prior to the hearing and the notice announcing 

the hearing contained appropriate notification of the availability of such discussion;

(iv) Prior to the issuance of notice respecting the redesignation of an area that 

includes any Federal lands, the State has provided written notice to the appropriate 

Federal Land Manager and afforded adequate opportunity (not in excess of 60 days) 

to confer with the State respecting the redesignation and to submit written comments 

and recommendations. In redesignating any area with respect to which any Federal 

Land Manager had submitted written comments and recommendations, the State 

shall have published a list of any inconsistency between such redesignation and such 

comments and recommendations (together with the reasons for making such 

redesignation against the recommendation of the Federal Land Manager); and

(v) The State has proposed the redesignation after consultation with the elected 

leadership of local and other substate general purpose governments in the area 

covered by the proposed redesignation.

(3) The plan may provide that any area other than an area to which paragraph (e) of 

this section refers may be redesignated as Class III if—

(i) The redesignation would meet the requirements of provisions established in 

accordance with paragraph (g)(2) of this section;

The PSD Rule does not include 

the redesignation provisions, 

as they are not a required 

element of the program. The 

plan "may" provide for 

redesignations.
Page 18 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(ii) The redesignation, except any established by an Indian Governing Body, has been 

specifically approved by the Governor of the State, after consultation with the 

appropriate committees of the legislature, if it is in session, or with the leadership of 

the legislature, if it is not in session (unless State law provides that such 

redesignation must be specifically approved by State legislation) and if general 

purpose units of local government representing a majority of the residents of the 

area to be redesignated enact legislation (including resolutions where appropriate) 

concurring in the redesignation;

(iii) The redesignation would not cause, or contribute to, a concentration of any air 

pollutant which would exceed any maximum allowable increase permitted under the 

classification of any other area or any national ambient air quality standard; and

(iv) Any permit application for any major stationary source or major modification 

subject to provisions established in accordance with paragraph (l) of this section 

which could receive a permit only if the area in question were redesignated as Class 

III, and any material submitted as part of that application, were available, insofar as 

was practicable, for public inspection prior to any public hearing on redesignation of 

any area as Class III.

(4) The plan shall provide that lands within the exterior boundaries of Indian 

Reservations may be redesignated only by the appropriate Indian Governing Body. The 

appropriate Indian Governing Body may submit to the Administrator a proposal to 

redesignate areas Class I, Class II, or Class III: Provided, That:

(i) The Indian Governing Body has followed procedures equivalent to those required 

of a State under paragraphs (g) (2), (3)(iii), and (3)(iv) of this section; and

(ii) Such redesignation is proposed after consultation with the State(s) in which the 

Indian Reservation is located and which border the Indian Reservation.

(5) The Administrator shall disapprove, within 90 days of submission, a proposed 

redesignation of any area only if he finds, after notice and opportunity for public 

hearing, that such redesignation does not meet the procedural requirements of this 

section or is inconsistent with paragraph (e) of this section. If any such disapproval 

occurs, the classification of the area shall be that which was in effect prior to the 

redesignation which was disapproved.

(6) If the Administrator disapproves any proposed area designation, the State or Indian 

Governing Body, as appropriate, may resubmit the proposal after correcting the 

deficiencies noted by the Administrator.

(h) Stack heights (h) Stack heights. The plan shall provide, as a minimum, that the degree of emission 

limitation required for control of any air pollutant under the plan shall not be affected in 

any manner by—

(1) So much of a stack height, not in existence before December 31, 1970, as exceeds 

good engineering practice, or

(2) Any other dispersion technique not implemented before then.

(i) Exemptions (i) Exemptions. 40 CFR 52.21(i) as 

incorporated into the PSD 

Rule, except as identified 

below.The exemptions under 

this paragraph are optional 

portions of the PSD program.

(1) The plan may provide that requirements equivalent to those contained in 

paragraphs (j) through (r) of this section do not apply to a particular major stationary 

source or major modification if:

VCAPCD excluded 40 CFR 

52.21(i)(1)(i-v, ix-x) and 40 

CFR 52.21(i)(6-8) , which is 

acceptable as they are not 

required elements of a PSD 

program.

(i) The major stationary source would be a nonprofit health or nonprofit educational 

institution or a major modification that would occur at such an institution; or

(ii) The source or modification would be a major stationary source or major 

modification only if fugitive emissions, to the extent quantifiable, are considered in 

calculating the potential to emit of the stationary source or modification and such 

source does not belong to any of the following categories:

( a ) Coal cleaning plants (with thermal dryers);

( b ) Kraft pulp mills;

( c ) Portland cement plants;

( d ) Primary zinc smelters;

40 CFR 52.21(h) as 

incorporated into the PSD 

Rules
Page 19 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

( e ) Iron and steel mills;

( f ) Primary aluminum ore reduction plants;

( g ) Primary copper smelters;

( h ) Municipal incinerators capable of charging more than 250 tons of refuse per 

day;

( i ) Hydrofluoric, sulfuric, or nitric acid plants;

( j ) Petroleum refineries;

( k ) Lime plants;

( l ) Phosphate rock processing plants;

( m ) Coke oven batteries;

( n ) Sulfur recovery plants;

( o ) Carbon black plants (furnace process);

( p ) Primary lead smelters;

( q ) Fuel conversion plants;

( r ) Sintering plants;

( s ) Secondary metal production plants;

( t ) Chemical process plants—The term chemical processing plant shall not include 

ethanol production facilities that produce ethanol by natural fermentation included 

in NAICS codes 325193 or 312140;

( u ) Fossil-fuel boilers (or combination thereof) totaling more than 250 million 

British thermal units per hour heat input;

( v ) Petroleum storage and transfer units with a total storage capacity exceeding 

300,000 barrels;

( w ) Taconite ore processing plants;

( x ) Glass fiber processing plants;

( y ) Charcoal production plants;

( z ) Fossil fuel-fired steam electric plants of more than 250 million British thermal 

units per hour heat input;

( aa ) Any other stationary source category which, as of August 7, 1980, is being 

regulated under section 111 or 112 of the Act; or

(iii) The source or modification is a portable stationary source which has previously 

received a permit under requirements equivalent to those contained in paragraphs (j) 

through (r) of this section, if:

( a ) The source proposes to relocate and emissions of the source at the new 

location would be temporary; and

( b ) The emissions from the source would not exceed its allowable emissions; and

( c ) The emissions from the source would impact no Class I area and no area 

where an applicable increment is known to be violated; and

( d ) Reasonable notice is given to the reviewing authority prior to the relocation 

identifying the proposed new location and the probable duration of operation at the 

new location. Such notice shall be given to the reviewing authority not less than 10 

days in advance of the proposed relocation unless a different time duration is 

previously approved by the reviewing authority.

(2) The plan may provide that requirements equivalent to those contained in 

paragraphs (j) through (r) of this section do not apply to a major stationary source or 

major modification with respect to a particular pollutant if the owner or operator 

demonstrates that, as to that pollutant, the source or modification is located in an area 

designated as nonattainment under section 107 of the Act. Nonattainment designations 

for revoked NAAQS, as contained in part 81 of this chapter, shall not be viewed as 

current designations under section 107 of the Act for purposes of determining the 

applicability of requirements equivalent to those contained in paragraphs (j) through (r) 

of this section to a major stationary source or major modification after the revocation of 

that NAAQS is effective. 

(3) The plan may provide that requirements equivalent to those contained in 

paragraphs (k), (m), and (o) of this section do not apply to a proposed major 

stationary source or major modification with respect to a particular pollutant, if the 

allowable emissions of that pollutant from a new source, or the net emissions increase 

of that pollutant from a modification, would be temporary and impact no Class I area 

and no area where an applicable increment is known to be violated.
Page 20 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(4) The plan may provide that requirements equivalent to those contained in 

paragraphs (k), (m), and (o) of this section as they relate to any maximum allowable 

increase for a Class II area do not apply to a modification of a major stationary source 

that was in existence on March 1, 1978, if the net increase in allowable emissions of 

each a regulated NSR pollutant from the modification after the application of best 

available control technology would be less than 50 tons per year.

(5) The plan may provide that the reviewing authority may exempt a proposed major 

stationary source or major modification from the requirements of paragraph (m) of this 

section, with respect to monitoring for a particular pollutant, if:

(i) The emissions increase of the pollutant from a new stationary source or the net 

emissions increase of the pollutant from a modification would cause, in any area, air 

quality impacts less than the following amounts:

( a ) Carbon monoxide—575 ug/m3 , 8-hour average;

( b ) Nitrogen dioxide—14 ug/m3 , annual average;

( c ) PM2.5–0 μg/m3 , 24-hour average;

NOTE to paragraph (i)(5)(i)(c): In accordance with Sierra Club v. EPA, 706 F. 3d 

428 (D. C. Cir. 2013), no exemption is available with regard to PM2.5.

( d ) PM10–10 μg/m3 , 24-hour average;

( e ) Sulfur dioxide—13 ug/m3 , 24-hour average;

( f ) Ozone;1

1

 No de minimis air quality level is provided for ozone. However, any net emissions 

increase of 100 tons per year or more of volatile organic compounds or nitrogen 

oxides subject to PSD would be required to perform an ambient impact analysis, 

including the gathering of air quality data.

( g ) Lead—0.1 μg/m3 , 3-month average.

( h ) Fluorides—0.25 μg/m3 , 24-hour average;

( i ) Total reduced sulfur—10 μg/m3 , 1-hour average

( j ) Hydrogen sulfide—0.2 μg/m3 , 1-hour average;

( k ) Reduced sulfur compounds—10 μg/m3 , 1-hour average; or

(ii) The concentrations of the pollutant in the area that the source or modification 

would affect are less than the concentrations listed in paragraph (i)(5)(i) of this 

section; or

(iii) The pollutant is not listed in paragraph (i)(5)(i) of this section.

(6) If EPA approves a plan revision under 40 CFR 51.166 as in effect before August 7, 

1980, any subsequent revision which meets the requirements of this section may 

contain transition provisions which parallel the transition provisions of 40 CFR 

52.21(i)(9), (i)(10) and (m)(1)(v) as in effect on that date, which provisions relate to 

requirements for best available control technology and air quality analyses. Any such 

subsequent revision may not contain any transition provision which in the context of 

the revision would operate any less stringently than would its counterpart in 40 CFR 

52.21.

(7) If EPA approves a plan revision under §51.166 as in effect [before July 31, 1987], 

any subsequent revision which meets the requirements of this section may contain 

transition provisions which parallel the transition provisions of §52.21 (i)(11), and 

(m)(1) (vii) and (viii) of this chapter as in effect on that date, these provisions being 

related to monitoring requirements for particulate matter. Any such subsequent revision 

may not contain any transition provision which in the context of the revision would 

operate any less stringently than would its counterpart in §52.21 of this chapter.

(8) The plan may provide that the permitting requirements equivalent to those 

contained in paragraph (k)(1)(ii) of this section do not apply to a stationary source or 

modification with respect to any maximum allowable increase for nitrogen oxides if the 

owner or operator of the source or modification submitted an application for a permit 

under the applicable permit program approved or promulgated under the Act before the 

provisions embodying the maximum allowable increase took effect as part of the plan 

and the permitting authority subsequently determined that the application as submitted 

before that date was complete.

40 CFR 52.21(i)(9) as 

incorporated into the PSD Rule

VCAPCD excluded 40 CFR 

52.21(i)(1)(i-v, ix-x) and 40 

CFR 52.21(i)(6-8) , which is 

acceptable as they are not 

required elements of a PSD 

program.
Page 21 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(9) The plan may provide that the permitting requirements equivalent to those 

contained in paragraph (k)(1)(ii) of this section shall not apply to a stationary source or 

modification with respect to any maximum allowable increase for PM–10 if (i) the owner 

or operator of the source or modification submitted an application for a permit under 

the applicable permit program approved under the Act before the provisions embodying 

the maximum allowable increases for PM–10 took effect as part of the plan, and (ii) the 

permitting authority subsequently determined that the application as submitted before 

that date was complete. Instead, the applicable requirements equivalent to paragraph 

(k)(1)(ii) shall apply with respect to the maximum allowable increases for TSP as in 

effect on the date the application was submitted.

40 CFR 52.21(i)(10) as 

incorporated into the PSD Rule

(10) The plan may provide that the requirements of paragraph (k)(1) of this section 

shall not apply to a stationary source or modification with respect to the national 

ambient air quality standards for PM2.5 in effect on March 18, 2013 if:

(i) The reviewing authority has determined a permit application subject to this section 

to be complete on or before December 14, 2012. Instead, the requirements in 

paragraph (k)(1) of this section shall apply with respect to the national ambient air 

quality standards for PM2.5 in effect at the time the reviewing authority determined 

the permit application to be complete; or

(ii) The reviewing authority has first published before March 18, 2013 a public notice 

of a preliminary determination for the permit application subject to this section. 

Instead, the requirements in paragraph (k)(1) of this section shall apply with respect 

to the national ambient air quality standards for PM2.5 in effect at the time of first 

publication of a public notice on the preliminary determination.

(j) Control technology 

review

(j) Control technology review. The plan shall provide that:

(1) A major stationary source or major modification shall meet each applicable 

emissions limitation under the State Implementation Plan and each applicable emission 

standard and standard of performance under 40 CFR parts 60 and 61.

(2) A new major stationary source shall apply best available control technology for each 

regulated NSR pollutant that it would have the potential to emit in significant amounts.

(3) A major modification shall apply best available control technology for each regulated 

NSR pollutant for which it would be a significant net emissions increase at the source. 

This requirement applies to each proposed emissions unit at which a net emissions 

increase in the pollutant would occur as a result of a physical change or change in the 

method of operation in the unit.

(4) For phased construction projects, the determination of best available control 

technology shall be reviewed and modified as appropriate at the least reasonable time 

which occurs no later than 18 months prior to commencement of construction of each 

independent phase of the project. At such time, the owner or operator of the applicable 

stationary source may be required to demonstrate the adequacy of any previous 

determination of best available control technology for the source.

(k) Source impact 

analysis

(k) Source impact analysis — 40 CFR 52.21(k) as 

incorporated into the PSD Rule

(1) Required demonstration. The plan shall provide that the owner or operator of the 

proposed source or modification shall demonstrate that allowable emission increases 

from the proposed source or modification, in conjunction with all other applicable 

emissions increases or reduction (including secondary emissions), would not cause or 

contribute to air pollution in violation of:

40 CFR 52.21(k)(1) as 

incorporated into the PSD Rule

(i) Any national ambient air quality standard in any air quality control region; or 40 CFR 52.21(k)(1)(i) as 

incorporated into the PSD Rule

(ii) Any applicable maximum allowable increase over the baseline concentration in any 

area.

40 CFR 52.21(k)(1)(ii) as 

incorporated into the PSD Rule

(2) [Reserved]

(l) Air quality models (l) Air quality models. The plan shall provide for procedures which specify that— 40 CFR 52.21(l) as 

incorporated into the PSD Rule

(1) All applications of air quality modeling involved in this subpart shall be based on the 

applicable models, data bases, and other requirements specified in appendix W of this 

part (Guideline on Air Quality Models).

40 CFR 52.21(l)(1) as 

incorporated into the PSD Rule

40 CFR 52.21(i)(11) as 

incorporated into the PSD Rule

40 CFR 52.21(j) as 

incorporated into the PSD 

Rules
Page 22 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(2) Where an air quality model specified in appendix W of this part (Guideline on Air 

Quality Models) is inappropriate, the model may be modified or another model 

substituted. Such a modification or substitution of a model may be made on a case-bycase basis or, where appropriate, on a generic basis for a specific State program. 

Written approval of the Administrator must be obtained for any modification or 

substitution. In addition, use of a modified or substituted model must be subject to 

notice and opportunity for public comment under procedures set forth in §51.102.

40 CFR 52.21(l)(2) - The PSD 

Rule revises the term 

"Administrator" in 40 CFR 

52.21(l)(2) to mean the EPA 

Administrator consistent with 

51.166. See Section V.2.1 of 

the TSD as well. 

(m) Air quality analysis (m) Air quality analysis — 40 CFR 52.21(m) as 

incorporated into the PSD Rule

(1) Preapplication analysis. 40 CFR 52.21(m)(1) as 

incorporated into the PSD Rule

(i) The plan shall provide that any application for a permit under regulations approved 

pursuant to this section shall contain an analysis of ambient air quality in the area 

that the major stationary source or major modification would affect for each of the 

following pollutants:

40 CFR 52.21(m)(1)(i) as 

incorporated into the PSD Rule

( a ) For the source, each pollutant that it would have the potential to emit in a 

significant amount;

40 CFR 52.21(m)(1)(i)(a)as 

incorporated into the PSD Rule

( b ) For the modification, each pollutant for which it would result in a significant 

net emissions increase.

40 CFR 52.21(m)(1)(i)(b) as 

incorporated into the PSD Rule

(ii) The plan shall provide that, with respect to any such pollutant for which no 

National Ambient Air Quality Standard exists, the analysis shall contain such air 

quality monitoring data as the reviewing authority determines is necessary to assess 

ambient air quality for that pollutant in any area that the emissions of that pollutant 

would affect.

40 CFR 52.21(m)(1)(ii) as 

incorporated into the PSD Rule

(iii) The plan shall provide that with respect to any such pollutant (other than 

nonmethane hydrocarbons) for which such a standard does exist, the analysis shall 

contain continuous air quality monitoring data gathered for purposes of determining 

whether emissions of that pollutant would cause or contribute to a violation of the 

standard or any maximum allowable increase.

40 CFR 52.21(m)(1)(iii) as 

incorporated into the PSD Rule

(iv) The plan shall provide that, in general, the continuous air monitoring data that is 

required shall have been gathered over a period of one year and shall represent the 

year preceding receipt of the application, except that, if the reviewing authority 

determines that a complete and adequate analysis can be accomplished with 

monitoring data gathered over a period shorter than one year (but not to be less 

than four months), the data that is required shall have been gathered over at least 

that shorter period.

40 CFR 52.21(m)(1)(iv) as 

incorporated into the PSD Rule

(v) The plan may provide that the owner or operator of a proposed major stationary 

source or major modification of volatile organic compounds who satisfies all 

conditions of 40 CFR part 51 appendix S, section IV may provide post approval 

monitoring data for ozone in lieu of providing preconstruction data as required under 

paragraph (m)(1) of this section.

40 CFR 52.21(m)(1)(vi) as 

incorporated into the PSD Rule

(2) Post-construction monitoring. The plan shall provide that the owner or operator of 

a major stationary source or major modification shall, after construction of the 

stationary source or modification, conduct such ambient monitoring as the reviewing 

authority determines is necessary to determine the effect emissions from the stationary 

source or modification may have, or are having, on air quality in any area.

40 CFR 52.21(m)(2) as 

incorporated into the PSD Rule

(3) Operation of monitoring stations. The plan shall provide that the owner or operator 

of a major stationary source or major modification shall meet the requirements of 

appendix B to part 58 of this chapter during the operation of monitoring stations for 

purposes of satisfying paragraph (m) of this section.

40 CFR 52.21(m)(3) as 

incorporated into the PSD Rule

(n) Source 

information

(n) Source information. 40 CFR 52.21(n) as 

incorporated into the PSD Rule

(1) The plan shall provide that the owner or operator of a proposed source or 

modification shall submit all information necessary to perform any analysis or make any 

determination required under procedures established in accordance with this section.

(2) The plan may provide that such information shall include:

(i) A description of the nature, location, design capacity, and typical operating 

schedule of the source or modification, including specifications and drawings showing 

its design and plant layout;

(ii) A detailed schedule for construction of the source or modification;
Page 23 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(iii) A detailed description as to what system of continuous emission reduction is 

planned by the source or modification, emission estimates, and any other information 

as necessary to determine that best available control technology as applicable would 

be applied;

(3) The plan shall provide that upon request of the State, the owner or operator shall 

also provide information on:

(i) The air quality impact of the source or modification, including meteorological and 

topographical data necessary to estimate such impact; and

(ii) The air quality impacts and the nature and extent of any or all general 

commercial, residential, industrial, and other growth which has occurred since August 

7, 1977, in the area the source or modification would affect.

(o) Additional impact 

analyses

(o) Additional impact analyses. The plan shall provide that— 40 CFR 52.21(o) as 

incorporated into the PSD Rule

(1) The owner or operator shall provide an analysis of the impairment to visibility, soils, 

and vegetation that would occur as a result of the source or modification and general 

commercial, residential, industrial, and other growth associated with the source or 

modification. The owner or operator need not provide an analysis of the impact on 

vegetation having no significant commercial or recreational value.

(2) The owner or operator shall provide an analysis of the air quality impact projected 

for the area as a result of general commercial, residential, industrial, and other growth 

associated with the source or modification.

(p) Sources impacting 

Federal Class I 

areas

(p) Sources impacting Federal Class I areas—additional requirements — 40 CFR 52.21(p) as 

incorporated into the PSD Rule

(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.

The PSD Rule generally meets 

this requirement at 

26.13(D)(4)

(2) Federal Land Manager. The Federal Land Manager and the Federal official charged 

with direct responsibility for management of Class I lands have an affirmative 

responsibility to protect the air quality related values (including visibility) of any such 

lands and to consider, in consultation with the Administrator, whether a proposed 

source or modification would have an adverse impact on such values.

40 CFR 52.21(p)(2) - The PSD 

Rule revise the term 

"Administrator" in 40 CFR 

52.21(p)(2) to mean the EPA 

Administrator instead of the 

APCO, as identified in 51.166.

(3) Denial—impact on air quality related values. The plan shall provide a mechanism 

whereby a Federal Land Manager of any such lands may present to the State, after the 

reviewing authority's preliminary determination required under procedures developed in 

accordance with paragraph (r) of this section, a demonstration that the emissions from 

the proposed source or modification would have an adverse impact on the air qualityrelated values (including visibility) of any Federal mandatory Class I lands, 

notwithstanding that the change in air quality resulting from emissions from such 

source or modification would not cause or contribute to concentrations which would 

exceed the maximum allowable increases for a Class I area. If the State concurs with 

such demonstration, the reviewing authority shall not issue the permit.

40 CFR 52.21(p)(3) and (4) 

and 40 CFR 52.21(b)(29), 

which defines "adverse impact 

on visibility", as incorporated 

into the PSD Rule

(4) Class I Variances. The plan may provide that the owner or operator of a proposed 

source or modification may demonstrate to the Federal Land Manager that the 

emissions from such source would have no adverse impact on the air quality related 

values of such lands (including visibility), notwithstanding that the change in air quality 

resulting from emissions from such source or modification would cause or contribute to 

concentrations which would exceed the maximum allowable increases for a Class I area. 

If the Federal land manager concurs with such demonstration and so certifies to the 

State, the reviewing authority may: Provided, That applicable requirements are 

otherwise met, issue the permit with such emission limitations as may be necessary to 

assure that emissions of sulfur dioxide, PM2.5, PM10, and nitrogen oxides would not 

exceed the following maximum allowable increases over minor source baseline 

concentration for such pollutants:

40 CFR 52.21(p)(5) and 40 

CFR 52.21(b)(29) as 

incorporated into the PSD Rule

[See Table 2] All applicable requirements 

from Table 2 have been 

incorporated by reference

(5) Sulfur dioxide variance by Governor with Federal Land Manager's concurrence. The 

plan may provide that—

The PSD Rule excludes these 

provisions which are found at 

40 CFR 52.21(p)(6), which 

are not required for a PSD 

program as 51.166 states the 

"plan may".
Page 24 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(i) The owner or operator of a proposed source or modification which cannot be 

approved under procedures developed pursuant to paragraph (q)(4) of this section 

may demonstrate to the Governor that the source or modification cannot be 

constructed by reason of any maximum allowable increase for sulfur dioxide for 

periods of twenty-four hours or less applicable to any Class I area and, in the case of 

Federal mandatory Class I areas, that a variance under this clause would not 

adversely affect the air quality related values of the area (including visibility);

(ii) The Governor, after consideration of the Federal Land Manager's recommendation 

(if any) and subject to his concurrence, may grant, after notice and an opportunity 

for a public hearing, a variance from such maximum allowable increase; and

(iii) If such variance is granted, the reviewing authority may issue a permit to such 

source or modification in accordance with provisions developed pursuant to 

paragraph (q)(7) of this section: Provided, That the applicable requirements of the 

plan are otherwise met.

(6) Variance by the Governor with the President's concurrence. The plan may provide 

that—

(i) The recommendations of the Governor and the Federal Land Manager shall be 

transferred to the President in any case where the Governor recommends a variance 

in which the Federal Land Manager does not concur;

(ii) The President may approve the Governor's recommendation if he finds that such 

variance is in the national interest; and

(iii) If such a variance is approved, the reviewing authority may issue a permit in 

accordance with provisions developed pursuant to the requirements of paragraph 

(q)(7) of this section: Provided, That the applicable requirements of the plan are 

otherwise met.

(7) Emission limitations for Presidential or gubernatorial variance. The plan shall 

provide that in the case of a permit issued under procedures developed pursuant to 

paragraph (q) (5) or (6) of this section, the source or modification shall comply with 

emission limitations as may be necessary to assure that emissions of sulfur dioxide 

from the source or modification would not (during any day on which the otherwise 

applicable maximum allowable increases are exceeded) cause or contribute to 

concentrations which would exceed the following maximum allowable increases over the 

baseline concentration and to assure that such emissions would not cause or contribute 

to concentrations which exceed the otherwise applicable maximum allowable increases 

for periods of exposure of 24 hours or less for more than 18 days, not necessarily 

consecutive, during any annual period:

The PSD Rule excludes these 

provisions which are found at 

40 CFR 52.21(p)(8), which 

are not required for a PSD 

program as 51.166 (p)(6)-

(p)(7) state the "plan may".

[See Table 3] Note: All applicable 

requirements from Table 3 

have been incorporated by 

reference

(q) Public 

participation

(q) Public participation. The plan shall provide that— VCAPCD Rule 26.13(D) and 

(E). See Section V.4 of the 

TSD

(1) The reviewing authority shall notify all applicants within a specified time period as to 

the completeness of the application or any deficiency in the application or information 

submitted. In the event of such a deficiency, the date of receipt of the application shall 

be the date on which the reviewing authority received all required information.

(2) Within one year after receipt of a complete application, the reviewing authority 

shall:

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

approved with conditions, or disapproved.

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

source would be constructed a copy of all materials the applicant submitted, a copy 

of the preliminary determination, and a copy or summary of other materials, if any, 

considered in making the preliminary determination.

(iii) Notify the public, by advertisement in a newspaper of general circulation in each 

region in which the proposed source would be constructed, of the application, the 

preliminary determination, the degree of increment consumption that is expected 

from the source or modification, and of the opportunity for comment at a public 

hearing as well as written public comment.

The PSD Rule excludes these 

provisions which are found at 

40 CFR 52.21(p)(6), which 

are not required for a PSD 

program as 51.166 states the 

"plan may".

The PSD Rule excludes these 

provisions which are found at 

40 CFR 52.21(p)(7), which 

are not required for a PSD 

program as 51.166 states the 

"plan may".
Page 25 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(iv) Send a copy of the notice of public comment to the applicant, the Administrator 

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

construction would occur as follows: 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.

(v) Provide opportunity for a public hearing for interested 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.

(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 a final 

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.

(vii) Make a final determination whether construction should be approved, approved 

with conditions, or disapproved.

(viii) Notify the applicant in writing of the final determination and make such 

notification available for public inspection at the same location where the reviewing 

authority made available preconstruction information and public comments relating to 

the source.

(r ) Source obligation (r) Source obligation. 40 CFR 52.21(r) as 

incorporated into the PSD Rule

(1) The plan shall include enforceable procedures to provide that approval to construct 

shall not relieve any owner or operator of the responsibility to comply fully with 

applicable provisions of the plan and any other requirements under local, State or 

Federal law.

40 CFR 52.21(r)(1) and (3) as 

incorporated into the PSD Rule

(2) The plan shall provide that at such time that a particular source or modification 

becomes a major stationary source or major modification solely by virtue of a 

relaxation in any enforceable limitation which was established after August 7, 1980, on 

the capacity of the source or modification otherwise to emit a pollutant, such as a 

restriction on hours of operation, then the requirements of paragraphs (j) through (s) 

of this section shall apply to the source or modification as though construction had not 

yet commenced on the source or modification.

40 CFR 52.21(r)(4) as 

incorporated into the PSD Rule

(3)–(5) [Reserved]

(6) Each plan shall provide that, except as otherwise provided in paragraph (r)(6)(vi) of 

this section, the following specific provisions apply with respect to any regulated NSR 

pollutant emitted from projects at existing emissions units at a major stationary source 

(other than projects at a source with a PAL) in circumstances where there is a 

reasonable possibility, within the meaning of paragraph (r)(6)(vi) of this section, that a 

project that is not a part of a major modification may result in a significant emissions 

increase of such pollutant, and the owner or operator elects to use the method 

specified in paragraphs (b)(40)(ii)(a ) through (c ) of this section for calculating 

projected actual emissions. Deviations from these provisions will be approved only if 

the State specifically demonstrates that the submitted provisions are more stringent 

than or at least as stringent in all respects as the corresponding provisions in 

paragraphs (r)(6)(i) through (vi) of this section.

40 CFR 52.21(r)(6) as 

incorporated into the PSD Rule

(i) Before beginning actual construction of the project, the owner or operator shall 

document and maintain a record of the following information:

40 CFR 52.21(r)(6)(i) as 

incorporated into the PSD Rule

( a ) A description of the project; 40 CFR 52.21(r)(6)(i)(a) as 

incorporated into the PSD Rule

( b ) Identification of the emissions unit(s) whose emissions of a regulated NSR 

pollutant could be affected by the project; and

40 CFR 52.21(r)(6)(i)(b) as 

incorporated into the PSD Rule

( c ) A description of the applicability test used to determine that the project is not 

a major modification for any regulated NSR pollutant, including the baseline actual 

emissions, the projected actual emissions, the amount of emissions excluded under 

paragraph (b)(40)(ii)( c ) of this section and an explanation for why such amount 

was excluded, and any netting calculations, if applicable.

40 CFR 52.21(r)(6)(i)(c) as 

incorporated into the PSD Rule
Page 26 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(ii) If the emissions unit is an existing electric utility steam generating unit, before 

beginning actual construction, the owner or operator shall provide a copy of the 

information set out in paragraph (r)(6)(i) of this section to the reviewing authority. 

Nothing in this paragraph (r)(6)(ii) shall be construed to require the owner or 

operator of such a unit to obtain any determination from the reviewing authority 

before beginning actual construction.

40 CFR 52.21(r)(6)(ii) as 

incorporated into the PSD Rule

(iii) The owner or operator shall monitor the emissions of any regulated NSR pollutant 

that could increase as a result of the project and that is emitted by any emissions 

unit identified in paragraph (r)(6)(i)( b ) of this section; and calculate and maintain a 

record of the annual emissions, in tons per year on a calendar year basis, for a period 

of 5 years following resumption of regular operations after the change, or for a period 

of 10 years following resumption of regular operations after the change if the project 

increases the design capacity or potential to emit of that regulated NSR pollutant at 

such emissions unit.

40 CFR 52.21(r)(6)(iii) as 

incorporated into the PSD Rule

(iv) If the unit is an existing electric utility steam generating unit, the owner or 

operator shall submit a report to the reviewing authority within 60 days after the end 

of each year during which records must be generated under paragraph (r)(6)(iii) of 

this section setting out the unit's annual emissions during the calendar year that 

preceded submission of the report.

40 CFR 52.21(r)(6)(iv) as 

incorporated into the PSD Rule

(v) If the unit is an existing unit other than an electric utility steam generating unit, 

the owner or operator shall submit a report to the reviewing authority if the annual 

emissions, in tons per year, from the project identified in paragraph (r)(6)(i) of this 

section, exceed the baseline actual emissions (as documented and maintained 

pursuant to paragraph (r)(6)(i)( c ) of this section) by a significant amount (as 

defined in paragraph (b)(23) of this section) for that regulated NSR pollutant, and if 

such emissions differ from the preconstruction projection as documented and 

maintained pursuant to paragraph (r)(6)(i)( c ) of this section. Such report shall be 

submitted to the reviewing authority within 60 days after the end of such year. The 

report shall contain the following:

40 CFR 52.21(r)(6)(v) as 

incorporated into the PSD Rule

( a ) The name, address and telephone number of the major stationary source; 40 CFR 52.21(r)(6)(v)(a) as 

incorporated into the PSD Rule

( b ) The annual emissions as calculated pursuant to paragraph (r)(6)(iii) of this 

section; and

40 CFR 52.21(r)(6)(v)(b) as 

incorporated into the PSD Rule

( c ) Any other information that the owner or operator wishes to include in the 

report (e.g., an explanation as to why the emissions differ from the preconstruction 

projection).

40 CFR 52.21(r)(6)(v)(c) as 

incorporated into the PSD Rule

(vi) A “reasonable possibility” under paragraph (r)(6) of this section occurs when the 

owner or operator calculates the project to result in either:

40 CFR 52.21(r)(6)(vi) as 

incorporated into the PSD Rule

( a ) A projected actual emissions increase of at least 50 percent of the amount 

that is a “significant emissions increase,” as defined under paragraph (b)(39) of 

this section (without reference to the amount that is a significant net emissions 

increase), for the regulated NSR pollutant; or

40 CFR 52.21(r)(6)(vi)(a) as 

incorporated into the PSD Rule

( b ) A projected actual emissions increase that, added to the amount of emissions 

excluded under paragraph (b)(40)(ii)( c ), sums to at least 50 percent of the 

amount that is a “significant emissions increase,” as defined under paragraph 

(b)(39) of this section (without reference to the amount that is a significant net 

emissions increase), for the regulated NSR pollutant. For a project for which a 

reasonable possibility occurs only within the meaning of paragraph (r)(6)(vi)( b ) 

of this section, and not also within the meaning of paragraph (a)(6)(vi)( a ) of this 

section, then provisions (a)(6)(ii) through (v) do not apply to the project.

40 CFR 52.21(r)(6)(vi)(b) as 

incorporated into the PSD Rule

(7) Each plan shall provide that the owner or operator of the source shall make the 

information required to be documented and maintained pursuant to paragraph (r)(6) of 

this section available for review upon request for inspection by the reviewing authority 

or the general public pursuant to the requirements contained in §70.4(b)(3)(viii) of this 

chapter.

40 CFR 52.21(r)(7) as 

incorporated into the PSD Rule

(s) Innovative control 

technology

(s) Innovative control technology. 

(1) The plan may provide that an owner or operator of a proposed major stationary 

source or major modification may request the reviewing authority to approve a system 

of innovative control technology.

The PSD Rule excludes this 

definition which is not required 

as 51.166 states that "the 

plan may provide."
Page 27 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(2) The plan may provide that the reviewing authority may, with the consent of the 

Governor(s) of other affected State(s), determine that the source or modification may 

employ a system of innovative control technology, if:

(i) The proposed control system would not cause or contribute to an unreasonable 

risk to public health, welfare, or safety in its operation or function;

(ii) The owner or operator agrees to achieve a level of continuous emissions reduction 

equivalent to that which would have been required under paragraph (j)(2) of this 

section, by a date specified by the reviewing authority. Such date shall not be later 

than 4 years from the time of startup or 7 years from permit issuance;

(iii) The source or modification would meet the requirements equivalent to those in 

paragraphs (j) and (k) of this section, based on the emissions rate that the stationary 

source employing the system of innovative control technology would be required to 

meet on the date specified by the reviewing authority;

(iv) The source or modification would not before the date specified by the reviewing 

authority:

( a ) Cause or contribute to any violation of an applicable national ambient air quality 

standard; or

( b ) Impact any area where an applicable increment is known to be violated;

(v) All other applicable requirements including those for public participation have 

been met.

(vi) The provisions of paragraph (p) of this section (relating to Class I areas) have 

been satisfied with respect to all periods during the life of the source or modification.

(3) The plan shall provide that the reviewing authority shall withdraw any approval to 

employ a system of innovative control technology made under this section, if:

(i) The proposed system fails by the specified date to achieve the required continuous 

emissions reduction rate; or

(ii) The proposed system fails before the specified date so as to contribute to an 

unreasonable risk to public health, welfare, or safety; or

(iii) The reviewing authority decides at any time that the proposed system is unlikely 

to achieve the required level of control or to protect the public health, welfare, or 

safety.

(4) The plan may provide that if a source or modification fails to meet the required level 

of continuous emissions reduction within the specified time period, or if the approval is 

withdrawn in accordance with paragraph (s)(3) of this section, the reviewing authority 

may allow the source or modification up to an additional 3 years to meet the 

requirement for the application of best available control technology through use of a 

demonstrated system of control.

(t)-(v) (t)–(v) [Reserved]

(w) Actuals PALs (w) Actuals PALs. The plan shall provide for PALs according to the provisions in 

paragraphs (w)(1) through (15) of this section.

40 CFR 52.21(aa) as 

incorporated into the PSD Rule

(1) Applicability. 

(i) The reviewing authority may approve the use of an actuals PAL for any existing 

major stationary source if the PAL meets the requirements in paragraphs (w)(1) 

through (15) of this section. The term “PAL” shall mean “actuals PAL” throughout 

paragraph (w) of this section.

(ii) Any physical change in or change in the method of operation of a major stationary 

source that maintains its total source-wide emissions below the PAL level, meets the 

requirements in paragraphs (w)(1) through (15) of this section, and complies with 

the PAL permit:

( a ) Is not a major modification for the PAL pollutant;

( b ) Does not have to be approved through the plan's major NSR program; and

( c ) Is not subject to the provisions in paragraph (r)(2) of this section (restrictions 

on relaxing enforceable emission limitations that the major stationary source used 

to avoid applicability of the major NSR program).

(iii) Except as provided under paragraph (w)(1)(ii)(c) of this section, a major 

stationary source shall continue to comply with all applicable Federal or State 

requirements, emission limitations, and work practice requirements that were 

established prior to the effective date of the PAL.

The PSD Rule excludes this 

definition which is not required 

as 51.166 states that "the 

plan may provide."

40 CFR 52.21(aa)(1) as 

incorporated into the PSD Rule
Page 28 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(2) Definitions. The plan shall use the definitions in paragraphs (w)(2)(i) through (xi) 

of this section for the purpose of developing and implementing regulations that 

authorize the use of actuals PALs consistent with paragraphs (w)(1) through (15) of 

this section. When a term is not defined in these paragraphs, it shall have the meaning 

given in paragraph (b) of this section or in the Act.

(i) Actuals PAL for a major stationary source means a PAL based on the baseline 

actual emissions (as defined in paragraph (b)(47) of this section) of all emissions 

units (as defined in paragraph (b)(7) of this section) at the source, that emit or have 

the potential to emit the PAL pollutant.

(ii) Allowable emissions means “allowable emissions” as defined in paragraph (b)(16) 

of this section, except as this definition is modified according to paragraphs 

(w)(2)(ii)( a ) and ( b ) of this section.

( a ) The allowable emissions for any emissions unit shall be calculated considering 

any emission limitations that are enforceable as a practical matter on the emissions 

unit's potential to emit.

( b ) An emissions unit's potential to emit shall be determined using the definition 

in paragraph (b)(4) of this section, except that the words “or enforceable as a 

practical matter” should be added after “federally enforceable.”

(iii) Small emissions unit means an emissions unit that emits or has the potential to 

emit the PAL pollutant in an amount less than the significant level for that PAL 

pollutant, as defined in paragraph (b)(23) of this section or in the Act, whichever is 

lower.

(iv) Major emissions unit means:

( a ) Any emissions unit that emits or has the potential to emit 100 tons per year 

or more of the PAL pollutant in an attainment area; or

( b ) Any emissions unit that emits or has the potential to emit the PAL pollutant in 

an amount that is equal to or greater than the major source threshold for the PAL 

pollutant as defined by the Act for nonattainment areas. For example, in 

accordance with the definition of major stationary source in section 182(c) of the 

Act, an emissions unit would be a major emissions unit for VOC if the emissions 

unit is located in a serious ozone nonattainment area and it emits or has the 

potential to emit 50 or more tons of VOC per year.

(v) Plantwide applicability limitation (PAL) means an emission limitation expressed in 

tons per year, for a pollutant at a major stationary source, that is enforceable as a 

practical matter and established source-wide in accordance with paragraphs (w)(1) 

through (15) of this section.

(vi) PAL effective date generally means the date of issuance of the PAL permit. 

However, the PAL effective date for an increased PAL is the date any emissions unit 

that is part of the PAL major modification becomes operational and begins to emit the 

PAL pollutant.

(vii) PAL effective period means the period beginning with the PAL effective date and 

ending 10 years later.

(viii) PAL major modification means, notwithstanding paragraphs (b)(2) and (b)(3) of 

this section (the definitions for major modification and net emissions increase), any 

physical change in or change in the method of operation of the PAL source that 

causes it to emit the PAL pollutant at a level equal to or greater than the PAL.

(ix) PAL permit means the major NSR permit, the minor NSR permit, or the State 

operating permit under a program that is approved into the plan, or the title V permit 

issued by the reviewing authority that establishes a PAL for a major stationary 

source.

(x) PAL pollutant means the pollutant for which a PAL is established at a major 

stationary source.

(xi) Significant emissions unit means an emissions unit that emits or has the 

potential to emit a PAL pollutant in an amount that is equal to or greater than the 

significant level (as defined in paragraph (b)(23) of this section or in the Act, 

whichever is lower) for that PAL pollutant, but less than the amount that would 

qualify the unit as a major emissions unit as defined in paragraph (w)(2)(iv) of this 

section.

(3) Permit application requirements. As part of a permit application requesting a PAL, 

the owner or operator of a major stationary source shall submit the following 

information in paragraphs (w)(3)(i) through (iii) of this section to the reviewing 

authority for approval.

(i) A list of all emissions units at the source designated as small, significant or major 

based on their potential to emit. In addition, the owner or operator of the source shall 

indicate which, if any, Federal or State applicable requirements, emission limitations, 

or work practices apply to each unit.

40 CFR 52.21(aa)(2) as 

incorporated into the PSD Rule

40 CFR 52.21(aa)(3) as 

incorporated into the PSD Rule
Page 29 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(ii) Calculations of the baseline actual emissions (with supporting documentation). 

Baseline actual emissions are to include emissions associated not only with operation 

of the unit, but also emissions associated with startup, shutdown, and malfunction.

(iii) The calculation procedures that the major stationary source owner or operator 

proposes to use to convert the monitoring system data to monthly emissions and 

annual emissions based on a 12-month rolling total for each month as required by 

paragraph (w)(13)(i) of this section.

(4) General requirements for establishing PALs. 

(i) The plan allows the reviewing authority to establish a PAL at a major stationary 

source, provided that at a minimum, the requirements in paragraphs (w)(4)(i)(a) 

through (g) of this section are met.

( a ) The PAL shall impose an annual emission limitation in tons per year, that is 

enforceable as a practical matter, for the entire major stationary source. For each 

month during the PAL effective period after the first 12 months of establishing a 

PAL, the major stationary source owner or operator shall show that the sum of the 

monthly emissions from each emissions unit under the PAL for the previous 12 

consecutive months is less than the PAL (a 12-month average, rolled monthly). For 

each month during the first 11 months from the PAL effective date, the major 

stationary source owner or operator shall show that the sum of the preceding 

monthly emissions from the PAL effective date for each emissions unit under the 

PAL is less than the PAL.

( b ) The PAL shall be established in a PAL permit that meets the public 

participation requirements in paragraph (w)(5) of this section.

( c ) The PAL permit shall contain all the requirements of paragraph (w)(7) of this 

section.

( d ) The PAL shall include fugitive emissions, to the extent quantifiable, from all 

emissions units that emit or have the potential to emit the PAL pollutant at the 

major stationary source.

( e ) Each PAL shall regulate emissions of only one pollutant.

( f ) Each PAL shall have a PAL effective period of 10 years.

( g ) The owner or operator of the major stationary source with a PAL shall comply 

with the monitoring, recordkeeping, and reporting requirements provided in 

paragraphs (w)(12) through (14) of this section for each emissions unit under the 

PAL through the PAL effective period.

(ii) At no time (during or after the PAL effective period) are emissions reductions of a 

PAL pollutant that occur during the PAL effective period creditable as decreases for 

purposes of offsets under §51.165(a)(3)(ii) of this chapter unless the level of the PAL 

is reduced by the amount of such emissions reductions and such reductions would be 

creditable in the absence of the PAL.

(5) Public participation requirements for PALs. PALs for existing major stationary 

sources shall be established, renewed, or increased, through a procedure that is 

consistent with §§51.160 and 51.161 of this chapter. This includes the requirement 

that the reviewing authority provide the public with notice of the proposed approval of a 

PAL permit and at least a 30-day period for submittal of public comment. The reviewing 

authority must address all material comments before taking final action on the permit.

40 CFR 52.21(aa)(5) as 

incorporated into the PSD Rule

(6) Setting the 10-year actuals PAL level. 

40 CFR 52.21(aa)(4) as 

incorporated into the PSD Rule

40 CFR 52.21(aa)(6) as 

incorporated into the PSD Rule
Page 30 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(i) Except as provided in paragraph (w)(6)(ii) of this section, the plan shall provide 

that the actuals PAL level for a major stationary source shall be established as the 

sum of the baseline actual emissions (as defined in paragraph (b)(47) of this section) 

of the PAL pollutant for each emissions unit at the source; plus an amount equal to 

the applicable significant level for the PAL pollutant under paragraph (b)(23) of this 

section or under the Act, whichever is lower. When establishing the actuals PAL level, 

for a PAL pollutant, only one consecutive 24-month period must be used to determine 

the baseline actual emissions for all existing emissions units. However, a different 

consecutive 24-month period may be used for each different PAL pollutant. Emissions 

associated with units that were permanently shut down after this 24-month period 

must be subtracted from the PAL level. The reviewing authority shall specify a 

reduced PAL level(s) (in tons/yr) in the PAL permit to become effective on the future 

compliance date(s) of any applicable Federal or State regulatory requirement(s) that 

the reviewing authority is aware of prior to issuance of the PAL permit. For instance, 

if the source owner or operator will be required to reduce emissions from industrial 

boilers in half from baseline emissions of 60 ppm NOX to a new rule limit of 30 ppm, 

then the permit shall contain a future effective PAL level that is equal to the current 

PAL level reduced by half of the original baseline emissions of such unit(s).

(ii) For newly constructed units (which do not include modifications to existing units) 

on which actual construction began after the 24-month period, in lieu of adding the 

baseline actual emissions as specified in paragraph (w)(6)(i) of this section, the 

emissions must be added to the PAL level in an amount equal to the potential to emit 

of the units.

(7) Contents of the PAL permit. The plan shall require that the PAL permit contain, at a 

minimum, the information in paragraphs (w)(7)(i) through (x) of this section.

(i) The PAL pollutant and the applicable source-wide emission limitation in tons per 

year.

(ii) The PAL permit effective date and the expiration date of the PAL (PAL effective 

period).

(iii) Specification in the PAL permit that if a major stationary source owner or 

operator applies to renew a PAL in accordance with paragraph (w)(10) of this section 

before the end of the PAL effective period, then the PAL shall not expire at the end of 

the PAL effective period. It shall remain in effect until a revised PAL permit is issued 

by the reviewing authority.

(iv) A requirement that emission calculations for compliance purposes include 

emissions from startups, shutdowns and malfunctions.

(v) A requirement that, once the PAL expires, the major stationary source is subject 

to the requirements of paragraph (w)(9) of this section.

(vi) The calculation procedures that the major stationary source owner or operator 

shall use to convert the monitoring system data to monthly emissions and annual 

emissions based on a 12-month rolling total for each month as required by paragraph 

(w)(3)(i) of this section.

(vii) A requirement that the major stationary source owner or operator monitor all 

emissions units in accordance with the provisions under paragraph (w)(13) of this 

section.

(viii) A requirement to retain the records required under paragraph (w)(13) of this 

section on site. Such records may be retained in an electronic format.

(ix) A requirement to submit the reports required under paragraph (w)(14) of this 

section by the required deadlines.

(x) Any other requirements that the reviewing authority deems necessary to 

implement and enforce the PAL.

(8) PAL effective period and reopening of the PAL permit. The plan shall require the 

information in paragraphs (w)(8)(i) and (ii) of this section.

(i) PAL effective period. The reviewing authority shall specify a PAL effective period of 

10 years.

(ii) Reopening of the PAL permit. 

( a ) During the PAL effective period, the plan shall require the reviewing authority 

to reopen the PAL permit to:

( 1 ) Correct typographical/calculation errors made in setting the PAL or reflect a 

more accurate determination of emissions used to establish the PAL;

( 2 ) Reduce the PAL if the owner or operator of the major stationary source 

creates creditable emissions reductions for use as offsets under §51.165(a)(3)(ii) 

of this chapter; and

( 3 ) Revise the PAL to reflect an increase in the PAL as provided under 

paragraph (w)(11) of this section.

40 CFR 52.21(aa)(6) as 

incorporated into the PSD Rule

40 CFR 52.21(aa)(7) as 

incorporated into the PSD Rule

40 CFR 52.21(aa)(8) as 

incorporated into the PSD Rule
Page 31 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

( b ) The plan shall provide the reviewing authority discretion to reopen the PAL 

permit for the following:

( 1 ) Reduce the PAL to reflect newly applicable Federal requirements (for 

example, NSPS) with compliance dates after the PAL effective date;

( 2 ) Reduce the PAL consistent with any other requirement, that is enforceable 

as a practical matter, and that the State may impose on the major stationary 

source under the plan; and

( 3 ) Reduce the PAL if the reviewing authority determines that a reduction is 

necessary to avoid causing or contributing to a NAAQS or PSD increment 

violation, or to an adverse impact on an AQRV that has been identified for a 

Federal Class I area by a Federal Land Manager and for which information is 

available to the general public.

( c ) Except for the permit reopening in paragraph (w)(8)(ii)( a )( 1 ) of this 

section for the correction of typographical/calculation errors that do not increase 

the PAL level, all reopenings shall be carried out in accordance with the public 

participation requirements of paragraph (w)(5) of this section.

(9) Expiration of a PAL. Any PAL that is not renewed in accordance with the procedures 

in paragraph (w)(10) of this section shall expire at the end of the PAL effective period, 

and the requirements in paragraphs (w)(9)(i) through (v) of this section shall apply.

(i) Each emissions unit (or each group of emissions units) that existed under the PAL 

shall comply with an allowable emission limitation under a revised permit established 

according to the procedures in paragraphs (w)(9)(i)( a ) and ( b ) of this section.

( a ) Within the time frame specified for PAL renewals in paragraph (w)(10)(ii) of 

this section, the major stationary source shall submit a proposed allowable 

emission limitation for each emissions unit (or each group of emissions units, if 

such a distribution is more appropriate as decided by the reviewing authority) by 

distributing the PAL allowable emissions for the major stationary source among 

each of the emissions units that existed under the PAL. If the PAL had not yet been 

adjusted for an applicable requirement that became effective during the PAL 

effective period, as required under paragraph (w)(10)(v) of this section, such 

distribution shall be made as if the PAL had been adjusted.

( b ) The reviewing authority shall decide whether and how the PAL allowable 

emissions will be distributed and issue a revised permit incorporating allowable 

limits for each emissions unit, or each group of emissions units, as the reviewing 

authority determines is appropriate.

(ii) Each emissions unit(s) shall comply with the allowable emission limitation on a 12-

month rolling basis. The reviewing authority may approve the use of monitoring 

systems (source testing, emission factors, etc.) other than CEMS, CERMS, PEMS or 

CPMS to demonstrate compliance with the allowable emission limitation.

(iii) Until the reviewing authority issues the revised permit incorporating allowable 

limits for each emissions unit, or each group of emissions units, as required under 

paragraph (w)(9)(i)( b ) of this section, the source shall continue to comply with a 

source-wide, multi-unit emissions cap equivalent to the level of the PAL emission 

limitation.

(iv) Any physical change or change in the method of operation at the major 

stationary source will be subject to major NSR requirements if such change meets the 

definition of major modification in paragraph (b)(2) of this section.

(v) The major stationary source owner or operator shall continue to comply with any 

State or Federal applicable requirements (BACT, RACT, NSPS, etc.) that may have 

applied either during the PAL effective period or prior to the PAL effective period 

except for those emission limitations that had been established pursuant to 

paragraph (r)(2) of this section, but were eliminated by the PAL in accordance with 

the provisions in paragraph (w)(1)(ii)(c) of this section.

(10) Renewal of a PAL. 

(i) The reviewing authority shall follow the procedures specified in paragraph (w)(5) 

of this section in approving any request to renew a PAL for a major stationary source, 

and shall provide both the proposed PAL level and a written rationale for the 

proposed PAL level to the public for review and comment. During such public review, 

any person may propose a PAL level for the source for consideration by the reviewing 

authority.

40 CFR 52.21(aa)(9) as 

incorporated into the PSD Rule

40 CFR 52.21(aa)(10) as 

incorporated into the PSD Rule
Page 32 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(ii) Application deadline. The plan shall require that a major stationary source owner 

or operator shall submit a timely application to the reviewing authority to request 

renewal of a PAL. A timely application is one that is submitted at least 6 months prior 

to, but not earlier than 18 months from, the date of permit expiration. This deadline 

for application submittal is to ensure that the permit will not expire before the permit 

is renewed. If the owner or operator of a major stationary source submits a complete 

application to renew the PAL within this time period, then the PAL shall continue to be 

effective until the revised permit with the renewed PAL is issued.

(iii) Application requirements. The application to renew a PAL permit shall contain the 

information required in paragraphs (w)(10)(iii) ( a ) through ( d ) of this section.

( a ) The information required in paragraphs (w)(3)(i) through (iii) of this section.

( b ) A proposed PAL level.

( c ) The sum of the potential to emit of all emissions units under the PAL (with 

supporting documentation).

( d ) Any other information the owner or operator wishes the reviewing authority to 

consider in determining the appropriate level for renewing the PAL.

(iv) PAL adjustment. In determining whether and how to adjust the PAL, the 

reviewing authority shall consider the options outlined in paragraphs (w)(10)(iv) ( a ) 

and ( b ) of this section. However, in no case may any such adjustment fail to 

comply with paragraph (w)(10)(iv)( c ) of this section.

( a ) If the emissions level calculated in accordance with paragraph (w)(6) of this 

section is equal to or greater than 80 percent of the PAL level, the reviewing 

authority may renew the PAL at the same level without considering the factors set 

forth in paragraph (w)(10)(iv)( b ) of this section; or

( b ) The reviewing authority may set the PAL at a level that it determines to be 

more representative of the source's baseline actual emissions, or that it determines 

to be appropriate considering air quality needs, advances in control technology, 

anticipated economic growth in the area, desire to reward or encourage the 

source's voluntary emissions reductions, or other factors as specifically identified by 

the reviewing authority in its written rationale.

( c ) Notwithstanding paragraphs (w)(10)(iv) ( a ) and ( b ) of this section:

( 1 ) If the potential to emit of the major stationary source is less than the PAL, 

the reviewing authority shall adjust the PAL to a level no greater than the 

potential to emit of the source; and

( 2 ) The reviewing authority shall not approve a renewed PAL level higher than 

the current PAL, unless the major stationary source has complied with the 

provisions of paragraph (w)(11) of this section (increasing a PAL).

(v) If the compliance date for a State or Federal requirement that applies to the PAL 

source occurs during the PAL effective period, and if the reviewing authority has not 

already adjusted for such requirement, the PAL shall be adjusted at the time of PAL 

permit renewal or title V permit renewal, whichever occurs first.

(11) Increasing a PAL during the PAL effective period. 

(i) The plan shall require that the reviewing authority may increase a PAL emission 

limitation only if the major stationary source complies with the provisions in 

paragraphs (w)(11)(i) ( a ) through ( d ) of this section.

( a ) The owner or operator of the major stationary source shall submit a complete 

application to request an increase in the PAL limit for a PAL major modification. 

Such application shall identify the emissions unit(s) contributing to the increase in 

emissions so as to cause the major stationary source's emissions to equal or 

exceed its PAL.

40 CFR 52.21(aa)(11) as 

incorporated into the PSD Rule
Page 33 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

( b ) As part of this application, the major stationary source owner or operator 

shall demonstrate that the sum of the baseline actual emissions of the small 

emissions units, plus the sum of the baseline actual emissions of the significant and 

major emissions units assuming application of BACT equivalent controls, plus the 

sum of the allowable emissions of the new or modified emissions unit(s), exceeds 

the PAL. The level of control that would result from BACT equivalent controls on 

each significant or major emissions unit shall be determined by conducting a new 

BACT analysis at the time the application is submitted, unless the emissions unit is 

currently required to comply with a BACT or LAER requirement that was established 

within the preceding 10 years. In such a case, the assumed control level for that 

emissions unit shall be equal to the level of BACT or LAER with which that 

emissions unit must currently comply.

( c ) The owner or operator obtains a major NSR permit for all emissions unit(s) 

identified in paragraph (w)(11)(i)( a ) of this section, regardless of the magnitude 

of the emissions increase resulting from them (that is, no significant levels apply). 

These emissions unit(s) shall comply with any emissions requirements resulting 

from the major NSR process (for example, BACT), even though they have also 

become subject to the PAL or continue to be subject to the PAL.

( d ) The PAL permit shall require that the increased PAL level shall be effective on 

the day any emissions unit that is part of the PAL major modification becomes 

operational and begins to emit the PAL pollutant.

(ii) The reviewing authority shall calculate the new PAL as the sum of the allowable 

emissions for each modified or new emissions unit, plus the sum of the baseline 

actual emissions of the significant and major emissions units (assuming application of 

BACT equivalent controls as determined in accordance with paragraph (w)(11)(i)( b ) 

of this section), plus the sum of the baseline actual emissions of the small emissions 

units.

(iii) The PAL permit shall be revised to reflect the increased PAL level pursuant to the 

public notice requirements of paragraph (w)(5) of this section.

(12) Monitoring requirements for PALs —

(i) General requirements. emissions of the PAL pollutant in terms of mass per unit of 

time. Any monitoring system authorized for use in the PAL permit must be based on 

sound science and meet generally acceptable scientific procedures for data quality 

and manipulation. Additionally, the information generated by such system must meet 

minimum legal requirements for admissibility in a judicial proceeding to enforce the 

PAL permit.

( a ) Each PAL permit must contain enforceable requirements for the monitoring 

system that accurately determines plantwide 

( b ) The PAL monitoring system must employ one or more of the four general 

monitoring approaches meeting the minimum requirements set forth in paragraphs 

(w)(12)(ii) ( a ) through ( d ) of this section and must be approved by the 

reviewing authority.

( c ) Notwithstanding paragraph (w)(12)(i)( b ) of this section, you may also 

employ an alternative monitoring approach that meets paragraph (w)(12)(i)( a ) of 

this section if approved by the reviewing authority.

( d ) Failure to use a monitoring system that meets the requirements of this 

section renders the PAL invalid.

(ii) Minimum performance requirements for approved monitoring approaches. The 

following are acceptable general monitoring approaches when conducted in 

accordance with the minimum requirements in paragraphs (w)(12)(iii) through (ix) of 

this section:

( a ) Mass balance calculations for activities using coatings or solvents;

( b ) CEMS;

( c ) CPMS or PEMS; and

( d ) Emission factors.

(iii) Mass balance calculations. An owner or operator using mass balance calculations 

to monitor PAL pollutant emissions from activities using coating or solvents shall meet 

the following requirements:

( a ) Provide a demonstrated means of validating the published content of the PAL 

pollutant that is contained in or created by all materials used in or at the emissions 

unit;

40 CFR 52.21(aa)(12) as 

incorporated into the PSD Rule
Page 34 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

( b ) Assume that the emissions unit emits all of the PAL pollutant that is contained 

in or created by any raw material or fuel used in or at the emissions unit, if it 

cannot otherwise be accounted for in the process; and

( c ) Where the vendor of a material or fuel, which is used in or at the emissions 

unit, publishes a range of pollutant content from such material, the owner or 

operator must use the highest value of the range to calculate the PAL pollutant 

emissions unless the reviewing authority determines there is site-specific data or a 

site-specific monitoring program to support another content within the range.

(iv) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall 

meet the following requirements:

( a ) CEMS must comply with applicable Performance Specifications found in 40 

CFR part 60, appendix B; and

( b ) CEMS must sample, analyze, and record data at least every 15 minutes while 

the emissions unit is operating.

(v) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL 

pollutant emissions shall meet the following requirements:

( a ) The CPMS or the PEMS must be based on current site-specific data 

demonstrating a correlation between the monitored parameter(s) and the PAL 

pollutant emissions across the range of operation of the emissions unit; and

( b ) Each CPMS or PEMS must sample, analyze, and record data at least every 15 

minutes, or at another less frequent interval approved by the reviewing authority, 

while the emissions unit is operating.

(vi) Emission factors. An owner or operator using emission factors to monitor PAL 

pollutant emissions shall meet the following requirements:

( a ) All emission factors shall be adjusted, if appropriate, to account for the 

degree of uncertainty or limitations in the factors' development;

( b ) The emissions unit shall operate within the designated range of use for the 

emission factor, if applicable; and

( c ) If technically practicable, the owner or operator of a significant emissions unit 

that relies on an emission factor to calculate PAL pollutant emissions shall conduct 

validation testing to determine a site-specific emission factor within 6 months of 

PAL permit issuance, unless the reviewing authority determines that testing is not 

required.

(vii) A source owner or operator must record and report maximum potential 

emissions without considering enforceable emission limitations or operational 

restrictions for an emissions unit during any period of time that there is no monitoring 

data, unless another method for determining emissions during such periods is 

specified in the PAL permit.

(viii) Notwithstanding the requirements in paragraphs (w)(12)(iii) through (vii) of this 

section, where an owner or operator of an emissions unit cannot demonstrate a 

correlation between the monitored parameter(s) and the PAL pollutant emissions rate 

at all operating points of the emissions unit, the reviewing authority shall, at the time 

of permit issuance:

( a ) Establish default value(s) for determining compliance with the PAL based on 

the highest potential emissions reasonably estimated at such operating point(s); or

( b ) Determine that operation of the emissions unit during operating conditions 

when there is no correlation between monitored parameter(s) and the PAL pollutant 

emissions is a violation of the PAL.

(ix) Re-validation. All data used to establish the PAL pollutant must be re-validated 

through performance testing or other scientifically valid means approved by the 

reviewing authority. Such testing must occur at least once every 5 years after 

issuance of the PAL.

(13) Recordkeeping requirements. 

(i) The PAL permit shall require an owner or operator to retain a copy of all records 

necessary to determine compliance with any requirement of paragraph (w) of this 

section and of the PAL, including a determination of each emissions unit's 12-month 

rolling total emissions, for 5 years from the date of such record.

(ii) The PAL permit shall require an owner or operator to retain a copy of the following 

records, for the duration of the PAL effective period plus 5 years:

( a ) A copy of the PAL permit application and any applications for revisions to the 

PAL; and

( b ) Each annual certification of compliance pursuant to title V and the data relied 

on in certifying the compliance.

40 CFR 52.21(aa)(13) as 

incorporated into the PSD Rule
Page 35 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(14) Reporting and notification requirements. The owner or operator shall submit semiannual monitoring reports and prompt deviation reports to the reviewing authority in 

accordance with the applicable title V operating permit program. The reports shall meet 

the requirements in paragraphs (w)(14)(i) through (iii) of this section.

(i) Semi-annual report. The semi-annual report shall be submitted to the reviewing 

authority within 30 days of the end of each reporting period. This report shall contain 

the information required in paragraphs (w)(14)(i)( a ) through ( g ) of this section.

( a ) The identification of owner and operator and the permit number.

( b ) Total annual emissions (tons/year) based on a 12-month rolling total for each 

month in the reporting period recorded pursuant to paragraph (w)(13)(i) of this 

section.

( c ) All data relied upon, including, but not limited to, any Quality Assurance or 

Quality Control data, in calculating the monthly and annual PAL pollutant emissions.

( d ) A list of any emissions units modified or added to the major stationary source 

during the preceding 6-month period.

( e ) The number, duration, and cause of any deviations or monitoring 

malfunctions (other than the time associated with zero and span calibration 

checks), and any corrective action taken.

( f ) A notification of a shutdown of any monitoring system, whether the shutdown 

was permanent or temporary, the reason for the shutdown, the anticipated date 

that the monitoring system will be fully operational or replaced with another 

monitoring system, and whether the emissions unit monitored by the monitoring 

system continued to operate, and the calculation of the emissions of the pollutant 

or the number determined by method included in the permit, as provided by 

paragraph (w)(12)(vii) of this section.

( g ) A signed statement by the responsible official (as defined by the applicable 

title V operating permit program) certifying the truth, accuracy, and completeness 

of the information provided in the report.

(ii) Deviation report. The major stationary source owner or operator shall promptly 

submit reports of any deviations or exceedance of the PAL requirements, including 

periods where no monitoring is available. A report submitted pursuant to 

§70.6(a)(3)(iii)(B) of this chapter shall satisfy this reporting requirement. The 

deviation reports shall be submitted within the time limits prescribed by the 

applicable program implementing §70.6(a)(3)(iii)(B) of this chapter. The reports shall 

contain the following information:

( a ) The identification of owner and operator and the permit number;

( b ) The PAL requirement that experienced the deviation or that was exceeded;

( c ) Emissions resulting from the deviation or the exceedance; and

( d ) A signed statement by the responsible official (as defined by the applicable 

title V operating permit program) certifying the truth, accuracy, and completeness 

of the information provided in the report.

(iii) Re-validation results. The owner or operator shall submit to the reviewing 

authority the results of any re-validation test or method within three months after 

completion of such test or method.

(15) Transition requirements. 

(i) No reviewing authority may issue a PAL that does not comply with the 

requirements in paragraphs (w)(1) through (15) of this section after the 

Administrator has approved regulations incorporating these requirements into a plan.

(ii) The reviewing authority may supersede any PAL which was established prior to 

the date of approval of the plan by the Administrator with a PAL that complies with 

the requirements of paragraphs (w)(1) through (15) of this section.

(x) (x) If any provision of this section, or the application of such provision to any person or 

circumstance, is held invalid, the remainder of this section, or the application of such 

provision to persons or circumstances other than those as to which it is held invalid, 

shall not be affected thereby.

40 CFR 52.21(bb) as 

incorporated into the PSD Rule

(y) (y) Equipment replacement provision. Without regard to other considerations, routine 

maintenance, repair and replacement includes, but is not limited to, the replacement of 

any component of a process unit with an identical or functionally equivalent 

component(s), and maintenance and repair activities that are part of the replacement 

activity, provided that all of the requirements in paragraphs (y)(1) through (3) of this 

section are met.

(1) Capital Cost threshold for Equipment Replacement. 

40 CFR 52.21(aa)(14) as 

incorporated into the PSD Rule

40 CFR 52.21(aa)(15) as 

incorporated into the PSD Rule

The PSD Rule excludes these 

provisions - as incorporated 

by reference in 52.21(cc). 

These provisions were stayed 

indefinitely by a court order 

on December 24, 2003. 
Page 36 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(i) For an electric utility steam generating unit, as defined in §51.166(b)(30), the 

fixed capital cost of the replacement component(s) plus the cost of any associated 

maintenance and repair activities that are part of the replacement shall not exceed 20 

percent of the replacement value of the process unit, at the time the equipment is 

replaced. For a process unit that is not an electric utility steam generating unit the 

fixed capital cost of the replacement component(s) plus the cost of any associated 

maintenance and repair activities that are part of the replacement shall not exceed 20 

percent of the replacement value of the process unit, at the time the equipment is 

replaced.

(ii) In determining the replacement value of the process unit; and, except as 

otherwise allowed under paragraph (y)(1)(iii) of this section, the owner or operator 

shall determine the replacement value of the process unit on an estimate of the fixed 

capital cost of constructing a new process unit, or on the current appraised value of 

the process unit.

(iii) As an alternative to paragraph (y)(1)(ii) of this section for determining the 

replacement value of a process unit, an owner or operator may choose to use 

insurance value (where the insurance value covers only complete replacement), 

investment value adjusted for inflation, or another accounting procedure if such 

procedure is based on Generally Accepted Accounting Principles, provided that the 

owner or operator sends a notice to the reviewing authority. The first time that an 

owner or operator submits such a notice for a particular process unit, the notice may 

be submitted at any time, but any subsequent notice for that process unit may be 

submitted only at the beginning of the process unit's fiscal year. Unless the owner or 

operator submits a notice to the reviewing authority, then paragraph (y)(1)(ii) of this 

section will be used to establish the replacement value of the process unit. Once the 

owner or operator submits a notice to use an alternative accounting procedure, the 

owner or operator must continue to use that procedure for the entire fiscal year for 

that process unit. In subsequent fiscal years, the owner or operator must continue to 

use this selected procedure unless and until the owner or operator sends another 

notice to the reviewing authority selecting another procedure consistent with this 

paragraph or paragraph (y)(1)(ii) of this section at the beginning of such fiscal year.

(2) Basic design parameters. The replacement does not change the basic design 

parameter(s) of the process unit to which the activity pertains.

(i) Except as provided in paragraph (y)(2)(iii) of this section, for a process unit at a 

steam electric generating facility, the owner or operator may select as its basic design 

parameters either maximum hourly heat input and maximum hourly fuel consumption 

rate or maximum hourly electric output rate and maximum steam flow rate. When 

establishing fuel consumption specifications in terms of weight or volume, the 

minimum fuel quality based on British Thermal Units content shall be used for 

determining the basic design parameter(s) for a coal-fired electric utility steam 

generating unit.

(ii) Except as provided in paragraph (y)(2)(iii) of this section, the basic design 

parameter(s) for any process unit that is not at a steam electric generating facility 

are maximum rate of fuel or heat input, maximum rate of material input, or 

maximum rate of product output. Combustion process units will typically use 

maximum rate of fuel input. For sources having multiple end products and raw 

materials, the owner or operator should consider the primary product or primary raw 

material when selecting a basic design parameter.

(iii) If the owner or operator believes the basic design parameter(s) in paragraphs 

(y)(2)(i) and (ii) of this section is not appropriate for a specific industry or type of 

process unit, the owner or operator may propose to the reviewing authority an 

alternative basic design parameter(s) for the source's process unit(s). If the 

reviewing authority approves of the use of an alternative basic design parameter(s), 

the reviewing authority shall issue a permit that is legally enforceable that records 

such basic design parameter(s) and requires the owner or operator to comply with 

such parameter(s).

(iv) The owner or operator shall use credible information, such as results of historic 

maximum capability tests, design information from the manufacturer, or engineering 

calculations, in establishing the magnitude of the basic design parameter(s) specified 

in paragraphs (y)(2)(i) and (ii) of this section.

(v) If design information is not available for a process unit, then the owner or 

operator shall determine the process unit's basic design parameter(s) using the 

maximum value achieved by the process unit in the five-year period immediately 

preceding the planned activity.

(vi) Efficiency of a process unit is not a basic design parameter.

by reference in 52.21(cc). 

These provisions were stayed 

indefinitely by a court order 

on December 24, 2003. 
Page 37 C.2 Attachment 1_Evaluation of CA PSD Rules and VCAPCD PSD Rule.xlsx

(3) The replacement activity shall not cause the process unit to exceed any emission 

limitation, or operational limitation that has the effect of constraining emissions, that 

applies to the process unit and that is legally enforceable.

Note to paragraph (y): By a court order on December 24, 2003, this paragraph (y) is 

stayed indefinitely. The stayed provisions will become effective immediately if the 

court terminates the stay. At that time, EPA will publish a document in the 

 Federal Register advising the public of the termination of the stay.

(Secs. 101(b)(1), 110, 160–169, 171–178, and 301(a), Clean Air Act, as amended (42 

U.S.C. 7401(b)(1), 7410, 7470–7479, 7501–7508, and 7601(a)); sec. 129(a), Clean 

Air Act Amendments of 1977 (Pub. L. 95–95, 91 Stat. 685 (Aug. 7, 1977)))

[43 FR 26382, June 19, 1978]

Effective Date Note: At 76 FR 17553, Mar. 30, 2011, §51.166 paragraphs (b)(2)(v) 

and (b)(3)(iii) (d) are stayed indefinitely.

Sections in 40 CFR 52.21, as incorporated into the PSD Rule, that are not 

otherwise required for a PSD program under 40 CFR 51.166 

40 CFR 

52.21(b)(54)

RACT (54) Reasonably available control technology (RACT) is as defined in §51.100(o) of this 

chapter.

Definition not in 51.166, but 

term is used in 51.166 

(aa)(9)(v) and is therefore 

appropriate to include.

40 CFR 

52.21(m)(1)(v)

Preapplication 

Ananlysis

For any application which becomes complete, except as to the requirements of 

paragraphs (m)(1) (iii) and (iv) of this section, between June 8, 1981, and February 9, 

1982, the data that paragraph (m)(1)(iii) of this section, requires shall have been 

gathered over at least the period from February 9, 1981, to the date the application 

becomes otherwise complete, except that:

(a) If the source or modification would have been major for that pollutant under 40 CFR 

52.21 as in effect on June 19, 1978, any monitoring data shall have been gathered 

over at least the period required by those regulations.

(b) If the Administrator determines that a complete and adequate analysis can be 

accomplished with monitoring data over a shorter period (not to be less than four 

months), the data that paragraph (m)(1)(iii) of this section, requires shall have been 

gathered over at least that shorter period.

(c) If the monitoring data would relate exclusively to ozone and would not have been 

required under 40 CFR 52.21 as in effect on June 19, 1978, the Administrator may 

waive the otherwise applicable requirements of this paragraph (v) to the extent that the 

applicant shows that the monitoring data would be unrepresentative of air quality over 

a full year.

40 CFR 

52.21(m)(1)(vii)

For any application that becomes complete, except as to the requirements of 

paragraphs (m)(1) (iii) and (iv) pertaining to PM10, after December 1, 1988 and no 

later than August 1, 1989 the data that paragraph (m)(1)(iii) requires shall have been 

gathered over at least the period from August 1, 1988 to the date the application 

becomes otherwise complete, except that if the Administrator determines that a 

complete and adequate analysis can be accomplished with monitoring data over a 

shorter period (not to be less than 4 months), the data that paragraph (m)(1)(iii) 

requires shall have been gathered over that shorter period.

We find the inclusion of this 

provision is acceptable.

40 CFR 

52.21(m)(1)(viii)

With respect to any requirements for air quality monitoring of PM10 under paragraphs 

(i)(11) (i) and (ii) of this section the owner or operator of the source or modification 

shall use a monitoring method approved by the Administrator and shall estimate the 

ambient concentrations of PM10 using the data collected by such approved monitoring 

method in accordance with estimating procedures approved by the Administrator.

We find the inclusion of this 

provision is acceptable.

40 CFR 52.21(r)(2) Source Obligation Approval to construct shall become invalid if construction is not commenced within 18 

months after receipt of such approval, if construction is discontinued for a period of 18 

months or more, or if construction is not completed within a reasonable time. The 

Administrator may extend the 18-month period upon a satisfactory showing that an 

extension is justified. This provision does not apply to the time period between 

construction of the approved phases of a phased construction project; each phase must 

commence construction within 18 months of the projected and approved 

commencement date.

We find the inclusion of this 

provision is acceptable.

We find the inclusion of this 

provision is acceptable.
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