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On August 1, 2016, the USEPA finalized a limited approval and limited disapproval of the Bay Area Air Quality Management District's (BAAQMD) amendments to the New Source Review (NSR) Rules, Regulation 2 Rules 1 and 2.  The finalized changes to Regulation 2, Rules 1 and 2, will become effective on August 31, 2016.  Although USEPA is finalizing the proposed revisions, USEPA found deficiencies with requirements related to Minor NSR, Prevention of Significant Deterioration (PSD), and Nonattainment NSR.  A summary of the key revisions and deficiencies from BAAQMD's submittal along with USEPA's findings can be found here.  BAAQMD has 24 months from August 31, 2016 to remedy the deficiencies, resubmit revisions and have these approved by the USEPA, or USEPA will be obligated to promulgate a Federal Implementation Plan.  In addition, USEPA will impose sanctions on BAAQMD if the deficiencies are not corrected and approved by EPA within 18 months of August 31, 2016.

The finalization of the NSR rules will have significant impacts on PSD Permitting within the BAAQMD.  BAAQMD previously implemented the Federal PSD permitting program based on a delegation agreement with the USEPA that provided partial delegation of authority to the District.  USEPA's finalization of these revisions means that BAAQMD will now be the PSD permitting authority.  All PSD permits previously issued by the USEPA for sources located within the BAAQMD will be transferred to BAAQMD.  In addition, all new PSD permits will be issued directly by the BAAQMD, and all new projects will be required to go through BAAQMD PSD permitting procedures and regulations.

BAAQMD will be hosting a technical workshop and training session to discuss the revised NSR permitting rules on September 9, 2016.  More information about the workshop can be found here.  If you have any questions on how this final rule may directly impact your Facility, please contact Melissa Hillman.