District
Rule 501 outlines the District’s general permitting requirements. District
Rule 502 outlines the District’s requirements for New Source Review (NSR). The following provides a brief overview of these developments:
Rule Amendment Summary:
In October 2021, PCAPCD submitted amendments to District
Rule 501 and
Rule 502 for EPA approval to the California SIP. These amendments were submitted in response to EPA’s limited approval of the Rules on April 20, 2020.
Revisions to Rule 501 addressed administrative concerns with respect to Air Pollution Control Officer (APCO) duties, public noticing, stack height procedures, and definition references. The amendments were published on April 8, 2021, and with this action, has been approved for incorporation into the California SIP.
Revisions to Rule 502 included the addition of a public notice requirement for new or modified emission units located in the Lake Tahoe Air Basin and the incorporation of the 2012 National Ambient Air Quality Standards (NAAQS) for PM2.5 and the requirements of PM2.5 SIP rulemaking. PCAPCD’s amendment also addressed a recent federal court determination pertaining to the ozone precursor inter-pollutant trading program by including language that prohibits PM10 emissions to offset nitrogen oxides or reactive organic compound emissions in ozone nonattainment areas. Finally, the amendment made additional clarifying changes throughout Rule 502 to ensure consistency with federal NSR permitting guidance and methodologies as they pertain to emission offset applicability and quantification. These revisions to Rule 502 were published and have been in effect within PCAPCD since August 21, 2021.
With the September 26, 2023, publication, the EPA has issued a limited disapproval of Rule 502. Limited disapproval was issued due to the following deficiencies:
- Lack of provisions to restrict permitting when the EPA finds the SIP isn’t adequately implemented in the region.
- Section 231 of the Rule, which defines a major modification does not correctly apply the Clean Air Act (CAA) section 182(c)(6) requirements regarding aggregation of net emissions increase and incorrectly specifies the use of “potential to emit” as the basis for calculating emissions increase.
- The Rule does not contain the definition of “Federal Land Manager” that is contained in 40 CFR 51.165(a)(1)(xlii).
- Section 229 of the Rule, which defines the term “Major Stationary Source – Sacramento Air Basin,” omits a threshold for ammonia, a PM2.5 precursor as required by 40 CFR 51.165(a)(13).
- Section 251 of the Rule, which defines the “Sacramento Air Valley Basin,” excludes a small area that is included in the federal definition, indicating that the PM2.5 NNSR program requirements as required by CAA, Section 173 have not been applied as necessary.
Implications of the Regulatory Action:
The EPA has issued the approval of Rule 501 and limited approval/disapproval of
Rule 502 to align PCAPCD’s regulations with CAA requirements for nonattainment and general preconstruction review. Specific deficiencies in Rule 502 were identified, including issues related to CAA implementation, major modifications, and definitions.
The formal announcement of limited approval/disapproval of Rule 502 requires that PCAPCD address the stated deficiencies within two years of the effective date of the Final rule. As such, it is expected that PCAPCD will publish an amendment to Rule 502 no later than October 26, 2025, which addresses the deficiencies identified. Until an amended Rule 502 is published by PCAPCD, it is pertinent to consider the District’s EPA approved Rules and Federal New Source Review Regulations when evaluating the air permitting requirements applicable to your Facility. There will be a public comment period when the draft amendments to the rule are published by PCAPCD.
