AIR POLLUTION CONTROL DISTRICT

DRAFT STAFF REPORT 

For the Proposed Revisions to 

RULE 207 – New and Modified Stationary Source Review, 

Rule 206 – Processing of Applications, and

RULE 101 - Definitions 

October 22, 2013

I INTRODUCTION

The Imperial County is currently designated as a nonattainment area for the state and 

federal ozone, PM10 and PM2.5 standards. The strategy in Imperial County to control air 

pollution is to reduce emissions from new and modified stationary sources through a 

New Source Review (NSR) program. The Imperial County Air Pollution Control District 

(District) proposes to revise Rule 207, New and Modified Stationary Source Review; 

Rule 206, Processing of Applications, and Rule 101, Definitions, to include new federal 

NSR requirements and to correct rule deficiencies that would allow for the incorporation 

of the revised Rules into the District’s State Implementation Plan (SIP). 

The District adopted Rule 207 prior to March 17, 1980. This version of Rule 207 was 

submitted and approved into the District’s SIP. The District revised Rule 207 on 

September 7, 1993 and again on September 14, 1999. Both versions of Rule 207 were

submitted to the United States Environmental Protection Agency (US EPA), Region IX

office, for inclusion into the District’s SIP. The US EPA identified several deficiencies

within the 1993 and 1999 submitted rules that require correction by the District. The 

proposed revisions to Rule 207 reflects the corrected deficiencies identified by US EPA 

with regards to Title 40 Code of Federal Regulations part 51.165 (40 CFR 51.165). The 

revision to Rule 207, similarly, addresses other federal Clean Air Act (CAA)

requirements. In order to help the District better address the US EPA identified 

deficiencies, US EPA provided the District with a New Source Review Checklist, dated 

December 7, 1999. The list contains required elements that would improve the 

District’s NSR rule and assist with meeting federal NSR requirements. In order to 

properly correct the identified deficiencies, the District worked closely with

representatives from the US EPA, Region IX office, and the California Air Resources 

Board (CARB). 

In addition to the identified deficiencies, the US EPA recently determined that the 

populated urban areas in Imperial County are in nonattainment for the national standard 

of the fine particulate matter with an aerodynamic diameter of less than two and one 

half microns (PM2.5). The federal CAA and applicable regulations require that 

nonattainment areas for PM2.5, such as Imperial County, incorporate certain 

requirements into their NSR program for sources that emit PM2.5 and precursors, other 

pollutants that contribute to PM2.5. US EPA issued a final rule known as the 

"Implementation of the New Source Review Program for Particulate Matter Less than 

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2.5 Microns (PM2.5 NSR Implementation Rule) Requirements" on May 16, 2008 (73 

FR28321). The 2008 PM2.5 NSR Implementation Rule explains how to apply NSR to 

PM2.5 emission sources and establishes the major source threshold, significant 

emission rates, offset ratios, inter-pollutant emission offset ratios, and offset applicability 

of PM2.5 precursors. The proposed revisions to the existing NSR rule will implement 

mandatory provisions under the permitting program for the federal nonattainment PM2.5

area.

The federal NSR permitting program relies on emission thresholds to determine when 

program requirements apply to new facilities. If a new facility is determined to potentially

emit target air pollutants in amounts greater than the major source threshold, the facility 

is considered a major source. Sources are defined as a major source for nonattainment 

NSR provisions if they have the potential to emit 100 or more tons per year of PM2.5. In 

order to meet federal requirements, the PM2.5 offset threshold in revised Rule 207 has 

been established at 100 or more tons per year. The offset ratios established in US 

EPA’s 2008 PM2.5 NSR Implementation Rule are 1 to 1, so for every one pound of 

emission increase one pound of emission reduction is required for PM2.5 or PM2.5

precursors. The federal 2008 PM2.5 NSR Implementation Rule allows provisions for 

inter-pollutant trading of emission offsets. The federal rule, as written, contains default 

inter-pollutant offset ratios which assign specific ratios for NOx to primary PM2.5 at a

ratio of 100 to 1 (100 tons of NOx for 1 ton of PM2.5) and for SOx to primary PM2.5 at a 

ratio of 40 to 1. However, in a memorandum dated July 21, 2011, US EPA announced 

a change with its policy set forth in the 2008 PM2.5 NSR Implementation Rule. The new 

policy requires a technical demonstration supporting the use of precursor ratios 

demonstrating the net air quality benefit resulting from any trading ratios involving PM2.5

precursors (NOx and SOx) which are submitted for US EPA approval and for use in a 

state’s inter-pollutant offset program. The policy does provide for an alternative, states 

may opt not to include PM2.5 inter-pollutant trading in the PM2.5 SIP’s. Within the 

revisions proposed to Rule 207, the District is opting to allow PM2.5 inter-pollutant 

trading; however, specific inter-pollutant ratios have not been established within the 

rule. Instead, language within the revised rule allows for the adoption of specific interpollutant ratios to be delayed until such a time that a demonstration can be developed 

and approved by the US EPA. This language allows the flexibility for not having to 

amend Rule 207, in the future, when the ratios are approved by US EPA. The District 

will be working closely with US EPA to determine the appropriate offset ratios specific to 

Imperial County.

Senate Bill (SB) 700, adopted in 2004 by the state legislature, removed the longstanding state air permitting exemption for agricultural operations and replaced it with a 

set of rules requiring agricultural sources with emissions over one-half a district’s major 

source threshold to obtain a permit. Essentially, SB700, within its contents, eliminated 

the exemption for agricultural operations in the farming of crops or raising of fowl or 

animals from the permitting process of local air pollution control districts. As a result, on 

October 10, 2006 the Imperial County District Board adopted several rules requiring 

agricultural sources to obtain a Permit to Operate (PTO) with our office. However, 

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SB700 prohibits districts from requiring some minor agricultural sources to offset their 

emission increases if the same agricultural source cannot be granted offsets for 

emission reductions because they do not meet the criteria for real, permanent, 

quantifiable, and enforceable. The California Air Pollution Control Officers Association 

(CAPCOA) interprets this exemption as saying that the District may not require offsets 

for minor agricultural sources unless emissions reduction credits can be issued to the 

same source-type. The proposed revision to Rule 207 includes a provision exempting 

minor agricultural sources from the requirement to provide offsets. The direct addition 

of the agricultural offset exemption language in Rule 207 provides a clearer description 

of the exemption and does not change the intent of SB700 or the methods with which 

the District permits agricultural sources. 

Two new thresholds where included in the definition for Major Stationary Source. The 

threshold for particulate matter with an aerodynamic diameter of less than ten microns 

(PM10) was changed to 70 tons per year to reflect the federal threshold for "serious" 

non-attainment areas for PM10. The major source threshold of 100 tons per year (tpy) 

is identified for PM2.5. Finally, the District made some necessary editorial changes 

within the rule. 

Rule 206, Processing of Applications, sets the guidelines for the processing of NSR 

permits and as such it defines the projects that can be processed as either ministerial or

as discretionary. Due to their level of complexity and a greater potential to emit, the 

great majority of the discretionary projects are required to go under a 30-day public 

review period. Rule 206 defines the guidelines for public notification and exemptions. 

The proposed Rule 206 includes a new arrangement of pollutants exempted from public

notification. The list of pollutants is now presented in a table to facilitate reading. The 

threshold for public notification for PM10 non-fugitive was reduced from 100 lbs/day to 

80 lbs/day, the new threshold was set below the significant threshold for PM10 (15 tpy). 

For PM2.5 a new public notification threshold was added, the new threshold was set 

below the significant threshold for PM2.5 (10 tpy). The proposed rule adds fluorides, 

sulfuric acid mist and lead to the public notification table, the threshold for public 

notification for these toxic air pollutants is set at the BACT requirement levels found in 

Rule 207. The revised rule also includes an option for publishing on the district’s 

website for final permit action notification. 

Rule 101 contains those definitions for specific terms applicable to all District rules. 

Revisions to specific definitions were a direct result of revisions to Rule 207. In 

addition, administrative changes were made throughout all of Rule 101. 

The proposed revisions are expected to have a net positive environmental impact, and 

no significant adverse economic impacts. The proposed revisions comply with 

restrictions imposed by California law that prohibit the District from adopting changes to 

certain rules that make them less stringent.

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II DESCRIPTION OF RULE 207, NEW AND MODIFIED STATIONARY SOURCE 

REVIEW (NSR) RULE

The District implements a comprehensive program to evaluate the expected air quality 

impacts of stationary, portable, and other non-mobile sources, and where appropriate, 

to ensure those sources are constructed and operated in a manner that reduces the 

expected impacts. The District permitting program includes, among other things, the 

review of new and modified sources through preconstruction permits, the ongoing 

regulation of sources through operating permits and applicable emission standards, and 

regular inspections of these sources to ensure that they comply with all applicable 

requirements. In addition, the District implements and enforces CARB (state) regulatory

requirements and federal CAA requirements including federal implementing regulations.

The District’s NSR rule provides a regulatory mechanism for allowing continued 

industrial and economic growth while minimizing resulting emission increases. District 

Rule 207 applies to all new stationary sources and all modifications to existing 

stationary sources that are subject to District permit requirements. However, there are 

certain permitting exemptions allowed for smaller sources of emissions which are 

identified in Rule 202, Exemptions. Currently, all definitions applicable to all District

rules are included in Rule 101, Definitions. However, in order to maintain SIP integrity,

the District has opted to incorporate all definitions applicable to Rule 207 within the rule 

itself. The addition of the definitions within Rule 207 serves two primary proposes. The 

first purpose is that it provides the project proponent clarity by allowing all the 

information in one place. The second purpose is that it serves to maintain the integrity 

of the SIP rule by making any future required revisions, issued by US EPA, only 

applicable to Rule 207. The revision is important because Rule 207 provides the 

mechanism for the District to issue permits to new and expanding business. The basic 

operating premise for industry is Rule 207 which lists the required elements for an 

Authority to Construct (ATC), Permit to Operate (PTO) and it lists the administrative 

requirements for the processing of NSR applications 

The District’s NSR program is designed to meet both the state and federal NSR 

requirements for nonattainment areas and applies to new and modified stationary 

sources that emit nitrogen oxides (NOx), volatile organic compounds (VOC), particulate 

matter with an aerodynamic diameter of less than ten microns (PM10), fine particulate 

matter with an aerodynamic diameter of less than two and one half microns (PM2.5), 

sulfur oxides (SOx), carbon monoxide (CO), as well as other hazardous pollutants 

subject to District permitting requirements pursuant to State law. For this reason two 

versions of Rule 207 are proposed: one addressing all federal SIP requirements and the 

second an all encompassing rule including not only the federal SIP requirements but the 

state requirements. 

Key features of Rule 207 include: 

 

Best Available Control Technology (BACT): mandates emission controls to minimize 

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emission increases for any emission unit with a potential to emit equal or above 25 

pounds per day; 

Emission offsets: requires any new or modified stationary source with a potential to 

emit above 137 pounds per day to offset any emission increases with either concurrent 

reductions from the stationary source or emission reductions which have been banked 

as Emission Reduction Credits (ERC) from other stationary sources; 

Public notification: a 30-day notice period prior to the issuance of an ATC to garner 

comments on projects that result in emissions above 100 pounds per day (Rule 206); 

III PROPOSED REGULATORY CHANGES

The District is proposing revisions to Rules 101, 207 and 206 in order to correct federal 

and state deficiencies which are required prior to any CARB and US EPA approval 

allowing incorporation of the revised rules into the Air District’s SIP. 

A Proposed revisions to Rule 101 Definitions: 

Rule 101 currently contains the definitions for specific terms applicable to all District 

rules. With the current changing federal views on the existing stationary federal 

programs this may be problematic for the District’s NSR program. Including the 

definitions in Rule 207 creates SIP integrity, for example the rule includes both RACT 

and BACT definitions, which then make it clear that sources are required to be reviewed 

under two programs. Another example of SIP integrity would be to keep any future nonNSR related revisions to Rule 101 from unintentionally causing definitions applicable to 

Rule 207 open for review. Finally, US EPA would not be able to approve Rule 207

without full approval of Rule 101, since they are linked. In order to resolve these 

unintended issues, the District is proposing to incorporate all the NSR related definitions 

found in Rule 101 into Rule 207, Section B, for clarity and SIP integrity as such Rule 

207 would become a stand-alone Rule. 

The proposed revisions to Rule 101 are as follows:

The District made administrative changes throughout the Rule that occurred when the 

rule was converted from WordPerfect to Word. The minor changes or errors in 

conversion were not immediately evident and are now being corrected. 

Actual Emissions: the time period required for determination of actual emissions was 

revised to meet federal NSR (40 CFR 51.165(a)(1)(xii)) requirements. Therefore, the 

time period necessary to evaluate actual emissions was changed to a consecutive 24 

months, instead of three years. By reducing the averaging period for the evaluation of 

actual emissions, the averaging is less spread-out and therefore this requirement will 

potentially become more stringent than the requirement in the current definition. 

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Because this change is not a relaxation of any requirements it is in compliance with 

SB288. This definition was revised to be consistent with the definition in Rule 207. 

Actual Emissions Reductions (AER): minor editorial changes.

Actual Interruptions of Power: deleted the last part of the sentence “or when the power 

reserves of the serving utility fall below 5 percent,” this action was taken for clarity of the 

definition and to avoid confusion. 

Affected Pollutants: this definition was revised to reflect regulatory changes that 

occurred with PM2.5 and Greenhouse Gases (GHG's). As a known criteria pollutant 

PM2.5 was added to reflect the 2006 nonattainment designation given to Imperial County 

by the US EPA. In addition, with the adoption of the “Endangerment Finding” 

(74FR66496; December 15, 2009) the Administrator (US EPA) identified six GHG’s 

which when combined where found to endanger both the public health and welfare. 

The Administrator’s finding created a regulatory framework for the identification and 

disclosure of GHG's but fell short of creating an Ambient Standard specific to GHG's. 

Because the definition, as written, included a final sentence which was an all 

encompassing statement that pollutants determined to have a significant adverse effect 

by either the US EPA or CARB were considered affected pollutants the revised 

definition deleted the last sentence and included an exemption for GHG's. Furthermore, 

a specific exclusion was added which effectively excludes hazardous air pollutants from 

the list of affected pollutants as regulated under Rule 207. Since the definition for both 

terms is the same, we replaced the word ROC with VOC from the list of affected 

pollutants for consistency with other sections of Rule 207.

Agricultural Source: this definition was revised to replace the citation to Senate Bill 700 

with the appropriate H&SC Section. 

Best Available Control Technology (BACT): deleted the last sentence in item one 

“unless the applicant demonstrates to the satisfaction of the Air Pollution Control Officer 

that such limitations are not achievable.” This action was taken to avoid confusion since

the first sentence means exactly the same. In addition, the citation reference to 40 CFR 

found under item three was updated by adding "part 63". 

Class I Area: this is a new definition which was added. It is defined as a Class I as 

listed in 40 CFR Part 81 Subpart D.

Complete Application: deleted the reference to the California Code of Regulations for 

this definition to be self-reliant and unaffected by any future changes in California 

H&SC.

Daily Emissions Limitation: changed the name of the definition to “Daily Emissions 

Limit” for consistency with the definition in Rule 207. In addition, added the words “and 

enforceable” in the first item to clearly indicate that the daily emission limit in the 

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documents the item refers to shall be enforceable. Also, the last sentence in item 3 

"and used in the calculation of the stationary source daily potential to emit" was deleted

to avoid unnecessary reference to the daily potential to emit.

Emissions Increase: added clarification to the definition by adding the reference to an 

Emissions Unit and clarified that an emission increase includes both, the stationary 

source or the emissions unit. Also, the last sentence was updated to reference the 

section within Rule 207 that is applicable.

Equipment: added a new sentence to clarify the type of emissions that may be reduced

and included fugitive emissions to the list. 

Federal Land Manager: this is a new definition which was added to meet federal NSR 

(51.165(a)(1)(xliii)). 

Historic Actual Emissions: the time period required for determination of historic actual 

emissions was revised to match the definition of actual emissions in the federal NSR 

(40 CFR 51.165(a)(1)(xii))), the time period necessary to evaluate historic actual 

emissions was changed to 24 months, instead of three years. By reducing the 

averaging period for evaluation of historic actual emissions, the averaging is less 

spread-out and therefore this requirement will potentially become more stringent than 

the requirement in the current definition. Because this change is not a relaxation of 

requirements it is in compliance with SB288. 

Identical Replacement Unit: this definition replaces the definition of “Identical Emissions 

Unit” entirely. The new definition clarifies that the only difference between an existing 

emissions unit and a replacement emissions unit is the serial number. The current 

definition only described a “like-kind” emission unit; therefore, the change is considered 

appropriate. 

Major Modification: This is a new definition meeting federal NSR (40 CFR 

51.165(a)(1)(v)). This term applies to facility modifications that are considered to be 

“major modifications” under federal NSR. Since under the current version of our NSR 

rule the offset threshold for criteria pollutants is below the major source threshold (25 

tpy), PM2.5 will be the only pollutant affected by the new definition because the offset 

threshold has been set at 100 tpy. 

Major Stationary Source: This is a new definition meeting federal NSR (40 CFR 

51.165(a)(1)(iv)). The new definition specifies the PM10 threshold for major sources as 

70 tpy, which is required for “serious” non-attainment areas, and adds the rest of the 

non-attainment pollutants to this definition at a threshold of 100 tpy, including PM2.5. 

Modification: the last sentence in the first paragraph “except that routine maintenance or 

repair shall not be considered to be a physical change,” which clarifies that routine 

maintenance and repairs is not considered a physical change was deleted and the 

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clarification was made under item 2; the routine maintenance and repairs exemption 

was moved and added as item number 2. Deleted item number 3 because of 

inconsistency with the provisions of 40 CFR 51.165(b)(5) which lists the actions that are 

not considered modifications, this item is not part of the exclusion list.

Nonattainment Area: this definition was revised to indicate that only a state or federal 

agency can make a determination of an area’s attainment status and the threshold is 

either a state or federal Ambient Air Quality Standard. 

Nonattainment Pollutant: added the correct citation to 40 CFR (Section 81.305) for 

federal designation of nonattainment pollutants. 

Particulate Matter (PM10): added sentence at the end of the definition to clarify that 

gaseous emissions which condensate to form PM at ambient temperatures shall be 

included as PM10. 

Particulate Matter (PM2.5): this is a new definition for fine particulate matter with an 

aerodynamic diameter of less than two and one half microns (PM ).

Permanent: this definition was revised to clarify that actual emission reductions are 

those that “continue or endure” for the duration of the project utilizing the reductions as 

credits. 

Person: deleted reference to the California Code of Regulations for this definition to be 

self-reliant and unaffected by any future changes in California H&SC.

PM2.5 Nonattainment Area: this is a new definition to identify the boundaries for the 

PM2.5 nonattainment area in Imperial County. 

Potential Emissions: this definition clarified the type of enforceable conditions as 

“practically and legally enforceable” which shall be included in a permit and added the 

PM2.5 parameter as part of the expressed measurement of daily emissions.

Potential to Emit: replaced regulated air pollutant by Affected Pollutant for consistency 

with the updates in Rule 207. Also, the last phrase in this definition clarifies that only 

“practically and legally” enforceable permit conditions can be accepted to limit the 

potential to emit and clarifies the source type.

Precursor: added the list of secondary pollutants (VOCs, NOx, SOx and Ammonia) that 

are precursors to the formation of PM2.5. 

Project: added language to clarify that a project includes all emission units associated 

with the scope of the preconstruction application for a new or modified stationary source 

and any emissions units indirectly affected. 

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Quantifiable: this definition was revised to clarify that the calculation of an emission 

reduction as one that can only be calculated using a quantification protocol instead of 

an independent judgment from either the US EPA or CARB.

Shutdown: this definition contains a clarification regarding the calculation of Emission 

Reduction Credits and requires surrender of an operating permit for calculation. 

Significant: this is a new definition meeting federal NSR (40 CFR 51.165(a)(1)(X)). 

Significant Emission Increase: this is a new definition meeting federal NSR (40 CFR 

51.165(a)(1)(xxvii)).

Significant Net Emission Increase: This is a new definition to complement the new 

definition of Major Modification. 

Surplus: the current definition was replaced with a more specific definition. US EPA 

developed the new language and suggested the District adopt the new definition with 

the purpose of standardizing the term. The meaning of the new definition is basically the 

same as the current one; however, the new definition contains an extensive list of 

examples of laws and SIP requirements that could be considered surplus. In addition, 

the new definition makes a distinction between emission reductions that can be 

considered surplus since the time of “generation” and can be used to offset emission 

increase for non-major stationary sources and those that are required to be reevaluated 

at the time of “use” to offset emission increases for major stationary sources. 

Revisions to Rule 101 that do not affect proposed revisions to Rule 207

Military Base: added a new definition of what constitutes as a military base closure 

according to federal regulation.

Reactive Organic Compound (ROC): this definition was updated according to the 

federally approved exemptions. In order to remain consistent this definition refers to the 

definition for Volatile Organic Compound (VOC)

Volatile Organic Compound (VOC): this definition was updated according to the 

federally approved exemptions for propylene carbonate, dimethyl carbonate, 

Perfluorocarbon, Methylated Siloxane, and Teritary-Butyl Acetate.

B The following changes are proposed for Draft Rule 207: 

 

Section A.1.a: the term “regulation” was replaced in this section and throughout this rule 

with the word “rule” for clarity.

Section A.1.b: Added abbreviation for term “Health and Safety Code (H&SC)” in this 

section. The term Health and Safety Code will be replaced throughout this rule by its 

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abbreviation “H&SC” to facilitate reading. 

Section A.2.a: Since the word “District” is already defined in Section B, the reference in 

this section and throughout the rule was changed from “Air Pollution Control District” to 

“District” (only) to facilitate reading. 

Section A.2.b: Added new language that requires the stationary source to comply with 

any new more stringent federal requirements not yet incorporated into the current 

version of this rule. This language was added to comply with SB288; this exemption is 

applicable only to federal requirements that are more stringent than the requirements 

currently included in this rule so no relaxation of requirements is allowed. 

Section A.2.c: this section was added to require following the guidelines in Rule 206, 

Processing of Applications, for public notification and public inspection for processing of 

applications. Rule 206 has been already approved into the District’s SIP; however, a 

revised version of this rule is proposed for adoption concurrent with Rule 207 to ensure 

full approval into our SIP.

Section A.2.d: a new section was added, this provision is required pursuant to 40 CFR, 

Part 51.165(a)(5)(ii). 

Section B: added new language to clarify that if a term is not defined in this rule then 

the definitions in 40 CFR 51.165 will apply. 40 CFR 51.165 includes the definitions in 

the federal NSR. This section incorporates the definitions of terms applicable to this rule 

that are currently in Rule 101. 

Section C.1: the term “Best Available Control Technology” was replaced in this section 

and throughout this rule by its abbreviation “BACT” to facilitate reading. 

Section C.1.a and C.1.b: Added new language to specify that BACT shall be applied on 

a pollutant by pollutant basis and clarify that BACT applies to those pollutants with a 

potential to emit equal to and exceeding the threshold. In addition, new language was 

added to clarify that PM2.5 BACT requirements shall apply only to the PM2.5 nonattainment area, which covers only the populated area in Imperial County. 

Section C.1.c: Added new language to specify that BACT shall be applied for each

pollutant for which a threshold is met or exceeded. In addition, since federal NSR 

regulates only criteria pollutants, the hazardous air pollutants listed in this section will 

not be included in the SIP version of Rule 207; therefore, a clarification note was added 

at the end of this section to relieve these pollutants from federal enforceability and make 

them only enforceable at a state and local level. 

Section C.1.d: Added new language to specify that for projects to be constructed in 

phases, a “BACT determination” is required for equipment added or modified in each 

phase. 

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Section C.1.f: new language was added to specify that while an exemption from BACT 

is required for new or modified emission units required to comply with District or state air 

pollution control regulations, these emission units are still required to apply reasonable 

available control technology for secondary pollutants exceeding the threshold. This 

exemption does not apply to new emission units that result in a major stationary source 

or major modification. 

Section C.1.h: the last phrase in the first sentence was deleted to avoid repetition.

Section C.2.a: the language in this section was revised to change the ROC offset 

threshold to VOC offset threshold; the definition for both components is the same 

therefore the District opted to replace the word ROC for VOC throughout the rule. In 

addition, since the offset threshold for major stationary sources is 100 tpy and the 

thresholds applicable to this section are below 100 tpy, this makes the offset 

requirements in this section only applicable to minor stationary sources (minor 

stationary sources are not regulated by federal NSR). Therefore, this subsection will 

not be included for SIP approval. 

Section C.2.b: this section is being deleted because it includes outdated requirements.

Section C.2.b.c: the last paragraph in the subsection was deleted, the requirements for 

major sources to fully mitigate emission increases was transferred into a new section 

C.2.c. In addition, since the offset threshold for major stationary sources is 100 tpy and 

the thresholds applicable to this section are below 100 tpy, this makes the offset 

requirements in this section only applicable to minor stationary sources (minor 

stationary sources are not regulated by federal NSR). Therefore, this subsection will 

not be included for SIP approval. 

Section C.2.c: this paragraph was added as a separated subsection to require full 

mitigation of criteria pollutants for new major stationary sources, as required by federal 

NSR. In addition, new language was added to clarify that full mitigation of PM2.5

emissions shall apply only to the PM2.5 non-attainment area, which includes only the 

populated area in Imperial County.

Section C.2.d: new language was added to require existing major stationary sources of 

PM2.5 to mitigate all PM2.5 increases which result in a major modification. Since existing 

major stationary sources are already required to offset all other criteria pollutants 

exceeding 137 pounds per day, this requirement will apply only to new federal major 

modification of PM2.5. This requirement only applies to the PM2.5 non-attainment area, 

which includes only the populated area in Imperial County.

Section C.2.ed: this section was updated to reflect a new method to evaluate PM10

emissions using current emission factors, instead of assuming a 50% TSP ratio.

Presently, there are emissions factors available for PM10; therefore, the 50% TSP 

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assumption for PM10 is outdated.

Section C.2.gf.1: new language was added to require emergency engines to comply 

with the requirements of CARB’s ATCM for Stationary Compression Engines, which are 

in most cases more stringent than the requirements of this section.

Section C.2.hg: editorial changes to facilitate reading.

Section C.2.ih.1: a new sentence was added specifying applicability of this section to 

equipment registered under PERP and deleted citation to portable equipment. This 

change is necessary for clarity. 

Section C.2.ih.2: a new sentence was added to exclude applicability of this subsection 

to any new major stationary Sources or major modifications because this exemption 

contradicts federal NSR.

Section C.2.ih.4: this subsection was deleted since state law supersedes District

requirements. 

Section C.2.j: new language was added to provide agricultural sources with limited 

exemption from offsetting emissions increases if the exempted emission increases 

would not meet the criteria for creating real, permanent, quantifiable, and enforceable 

emission reductions, as it was the intention of H&SC 42301.18(c). This exemption is 

not applicable to agricultural sources subject to major source permitting requirements, 

including federal major modifications. 

Section C.3.a: new language was added in the table to specify the parameters under 

which the offset ratio will be assessed for those sources requiring offsets and which are 

located more than 50 miles from the offset generation source. The offset ratio shall be 

assessed with the goal of preventing interference of any stationary source with the 

attainment or maintenance of the ambient air quality standards. 

Section C.3.b: new language was added to allow higher offset ratios to stationary 

sources for pollutants that are determined, based on an air quality analysis, to be 

interfering with the attainment of any ambient air quality standard. 

Section C.3.c.b: deleted the last item in the subsection since it is considered an 

unnecessary requirement and it limits the availability of offsets. 

Section C.4.a: new language was added to require offsets from another district (but 

same Air Basin) to comply with the guidelines of H&SC Section 40709.6. New 

language was added to require US EPA’s approval for any intra-district offsets used to 

meet major stationary source offset requirements. This requirement was included at US 

EPA’s request to meet federal NSR requirements.

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Section C.4.b: deleted “Interpollutant trades between PM10 and PM10 precursors may 

be allowed,” this sentence was deleted to avoid repetition and create easy of reading. In 

addition, new language was added to allow interpollutant offset trades between PM2.5

and PM2.5 precursors; however, trading ratios are not established within the rule. In a 

memorandum dated July 21, 2011, US EPA announced a change in its policy set forth 

in the 2008 PM2.5 NSR Implementation Rule. The new US EPA policy requires that any 

trading ratios involving PM2.5 precursors which are submitted to US EPA for approval for 

use in a state’s interpollutant offset program must be accompanied by a technical 

demonstration supporting the appropriate ratios that shows the net air quality benefits 

for the proposed ratios. As an alternative, the states are allowed to opt not to include 

PM2.5 interpollutant trading in the PM2.5 SIPs. The District is opting to allow PM2.5

interpollutant trading in the proposed rule; however, specific interpollutant ratios have 

not been established. Instead, adoption of specific interpollutant ratios have been 

delayed until such a time that a demonstration is developed and approved by the US 

EPA. This language allows the flexibility for not having to amend Rule 207 at the time 

that the ratios are approved. 

Section C.4.c: deleted the last sentence in this subsection because it conflicts with 

federal regulations. Federal regulations do not allow discretion by the APCO or CARB 

to exempt a source from the requirement to provide offsets for emission reductions 

occurring during the same time of operation of the stationary source. 

Section C.4.e: this subsection has been deleted; our SIP does not contain emission 

reduction allowances to offset for emission increases generated from cogeneration or 

resource recovery projects; therefore, the offset exemption for resource recovery 

projects cannot be allowed. 

Section C.5.a: changed to the correct citation of CAA Section (173).

Section C.5.b.2: at the suggestion of US EPA, Section C.5.b.1 with in the current rule 

was divided in two parts for clarity then a new Section C.5.b.2 was created; however, 

the content was not changed. 

Section C.5.b.3.2: deleted first paragraph because it conflicts with US EPA’s policies. 

US EPA’s policies do not allow discretionary power to the APCO to exempt a source 

from the requirement to demonstrate compliance with an air quality impact analysis 

when required. In addition, new language was added to limit the requirement for an air 

quality impact analysis to those projects exceeding the public notice thresholds of Rule 

206. Also, Sections C.5.b(a) and C.5.b(b) were deleted to avoid repetition of these 

requirements.

Section C.5.d: added new language to exempt federal major sources and major 

modifications from compliance with Health and Safety Code Sections 42314.1 and 

42315. These provisions in H&S Code exempt power projects which burn municipal 

waste, landfill gas, or digester gas, from the requirement to secure emission offsets to 

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mitigate the impact of the projects; however, since this exemption is not allowed by 

federal regulations, a new sentence was added for clarification

Section C.5.e: this provision is required to be incorporated to comply with 40 CFR Part 

51.165(a)(5)(i). 

Section D, deleted reserved sections D.1 through D.5.

Section D.1.f.6: added new language to require the District to consult with the Federal 

Land Manger on a proposed Major Stationary Source or Major Modification, should the 

source or modification have an impact on visibility in any Class I federal area. This 

section was added to comply with 40 CFR Part 51.307.

Section D.1.g.6: added new language to specify that this section shall not be part of the 

SIP. Since federal NSR regulates only criteria pollutants, the notification requirements 

for sources emitting hazardous air pollutants will remain out of the NSR SIP. This 

section is included to address a Health and Safety Code permitting requirement for 

emission sources of hazardous air pollutants.

Section D.3.b: added new language to clarify that a violation of emissions limitation 

provisions in the contract with the unpermitted source generating offsets will invalidate 

the contract and the Applicant for the Source using these Offsets shall be required to 

provide new Offsets. In addition, added new language to specify that the entire section 

shall not be part of the SIP. Federal NSR does not allow the creation of ERCs from 

non-traditional emission sources not subject to a district permit; therefore, this section 

will remain out of the NSR SIP and it will be only District enforceable.

Section D.3.d: replaced the term “Major Project” by “Major Stationary Sources and 

Major Modifications” for clarity. Deleted “as defined in Rule 900,” this language is not 

necessary due to the definitions for these terms are included in Section B of this rule. 

Section D.4.e.3: this section was created by splitting the previous section in two 

subsections for clarity. The addition of this subsection did not create a new requirement. 

Section D.4.f: added language to specify methodology for accepting an application for 

certification of a power project as complete. 

Section D.4.g: added language to narrow applicability to conditions related to air 

pollution. 

Section E.25: added new language to make clear that the actual emission reductions 

(AER) resulting from modifications to existing emission units do not need to be banked if 

the AER are planned to be used within the same stationary source.

Section E.2.d.1: added “Surplus” to the list of requirements that actual emissions shall 

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meet (State and federal requirements).

Section E.2.d.3: deleted the first item in the subsection. If a control measure is 

identified in a state or District plan, the actual emission reductions cannot be used until 

the plan is modified to replace the projected emissions with other reductions or showing 

that these reductions are no longer included. 

Section E.2.d.4: replace “Clean Air Act Amendments of 1990” with “the base year used 

in an attainment plan demonstration for that pollutant”. This change is necessary to 

comply with update federal NSR.

Section E.36: deleted last paragraphs to get rid of outdated requirements. 

Section F.1.a: added specific reference to 40 CFR Part 51 Appendix W which contains 

the guidelines on air quality models. 

Section F.1.b: added new language to define “good engineering practices” by requiring 

compliance with 40 CFR 51.100(ii) to meet federal NSR requirements. 

Section G: deleted the entire section. Since this section deals with the creation and 

funding for the community bank, this section was moved to Rule 215, Community Bank 

and Priority Reserve.

C The following changes are proposed for Draft Rule 206: 

Section A.2: the term “Air Pollution Control Officer” was replaced with the acronym 

“APCO” – this administrative change was done throughout the Rule for consistency. 

Section A.5: is a new subsection containing definitions previously found only in Rule 

101, Definitions. Two definitions were added: Major Project and Minor Project.

Section B.1: A statement, inserted as the last sentence, is made to clarify that all nonministerial permits are to be processed as discretionary permits, including being subject 

to public notification according to Section C of Rule 206. 

Section B.5: is a new subsection to ensure that all major stationary sources or major 

modifications meet federal NSR requirements. 

Section C.3: changed the arrangement of pollutants listed in this section to tabular to 

facilitate reading. Reduced the threshold for public notification for PM10 non-fugitive 

emissions from 100 lbs/day to 80 lbs/day, the new threshold was set below the 

significant threshold for PM10 (15 tpy). The exemption threshold is appropriate, since all 

emission units are required to comply with BACT at a PM10 threshold of 25 lb/day (4.5 

tpy) regardless of public notification, it is not anticipated an increase of PM10 emissions 

due to the new exemption threshold. Added new public notification threshold for PM2.5, 

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the new threshold was set below the significant threshold for PM2.5 (10 tpy). Reduced 

the carbon monoxide threshold for public notification for those projects that elect not to 

request an exemption for carbon monoxide offsets, these projects will be subject to 

public notification at a new threshold of 137 lbs/day. Added fluorides, sulfuric acid mist 

and lead to the public notification table, the threshold for public notification for these 

toxic air pollutants was set at BACT requirement levels found in Rule 207.

Section C.6: added the option for publishing on the district’s website for final permit 

action notification. 

Section D.9: changed the term “Major Projects” to “Major Stationary Sources or 

Modifications to Major Stationary Sources,” for clarity. 

IV PROTECT CALIFORNIA AIR ACT OF 2003 – SENATE BILL 288

 

The California Health and Safety Code, sections 42500 through 42507 (SB 288), 

mandates that a District’s NSR rule cannot be made less stringent, in a variety of 

specified areas, than the rule that existed on December 30, 2002. This legislation was 

crafted and signed into law specifically to prevent Districts from implementing any 

Federal NSR reforms that would relax California’s stringent NSR requirements. CARB 

has provided guidance on the implementation of SB 288, and has concluded that there 

are four components of NSR that are affected: 

 

1. NSR applicability determinations. 

2. The definitions of “modification”, “major modification”, “routine maintenance”, and 

“repair or maintenance”. 

3. The calculation methodology, thresholds, or other procedures of new source 

review. CARB further interprets this to apply to baseline determinations, 

calculating emissions changes, offset amounts required and major source and 

major modification thresholds. 

4. The definitions and requirements of NSR regulations, including, on a programwide basis, the requirement to obtain offsets

The proposed NSR rule revisions outlined in this staff report implement required federal 

provisions and correct several deficiencies in the rule with 40 CFR 51.165 and other 

CAA requirements, as well as add new requirements for PM2.5 and a limited offsetting 

exemption for agricultural sources. None of the changes relaxes existing District NSR 

requirements in any of the two previously amended versions of Rule 207 adopted 

before December 30, 2002.

. 

V. COST EFFECTIVENESS AND SOCIOECONOMIC IMPACT ANALYSIS 

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Pursuant to the California H&SC Section 40920.6(a), the District is required to analyze 

the cost effectiveness of new rules or rule amendments that implement Best Available 

Retrofit Control Technology (BARCT). The district does not anticipate that any of the 

proposed changes will require existing sources to be retrofitted with additional control 

technology. Therefore, the draft revisions do not add BARCT requirements and 

therefore are not subject to the cost effectiveness analysis mandate. 

 

Additionally, state law requires the District to analyze the socioeconomic impacts of any 

proposed rule revisions that significantly affect air quality or strengthen an emission 

limitation. The draft revisions will have neither effect, and are therefore not subject to 

the socioeconomic analysis mandate. 

 

VI. RULE CONSISTENCY ANALYSIS 

 

Pursuant to the California H&SC Section 40727.2 (g) a rule consistency analysis of the 

draft rule is not required. The draft rules do not strengthen emission limits or impose 

more stringent monitoring, reporting, or recordkeeping requirements. 

 

VII. ENVIRONMENTAL ASSESSMENT 

 

Pursuant to §15061 of the Guidelines for the Implementation of the California 

Environmental Quality Act (CEQA), District staff analyzed the likely environmental 

impacts of the proposed revisions to Rule 207, Rule 206 and Rule 101. The revisions to 

Rule 207 are considered a project under CEQA and the intent of this project is to clarify 

and/or otherwise add the federal PM2.5 new source review requirements, which include 

establishing the PM2.5 major source permitting thresholds, offset ratios, and the PM2.5

precursor offset applicability. Additionally, the revisions will include some administrative 

language change to improve clarity and assure SIP approval of the limited offset 

exemption for minor agricultural sources. The revisions to Rule 207 do not include the 

tightening of limits, the establishment of new limits, or the requirement of additional addon equipment. Similarly, the draft revisions are based on existing federal requirements 

and do not change the meaning of the current rule language. §15061(b)(3) of the CEQA 

Guidelines allows for an exemption when a project does not have the potential for 

causing a significant effect on the environment. Based on the information provided 

above, District staff concluded that the proposed revisions to Rule 207 will not have any 

significant adverse effect on the environment. In fact, it is with certainty that there is no 

possibility that the proposed revisions may have a significant effect on the environment 

therefore the project as proposed is not subject to CEQA. Staff is recommending the

filing of a Notice of Exemption under the provisions of California Code of Regulations 

§15061(b)(3).

VIII RULE DEVELOPMENT PROCESS

The District held several meetings with US EPA and CARB representatives via 

teleconference, to discuss the revisions to Rules 207, 206 and 101. District Staff 

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conducted a public workshop on September 19, 2013 to present, discuss and to receive 

comments on the proposed rulemaking. The District considered written comments 

received from the public, affected sources, CARB, and US EPA during the public 

workshop process and these comments have been incorporated into the proposed draft 

rules as appropriate. 

 

A Public notice for a public hearing inviting the community to review and comment on 

the proposed revisions was published in the Imperial County local newspaper of 

greatest circulation, the Imperial Valley Press, on September 18, 2013, and the District’s

website. 

 

Adoption by our Governing Board is scheduled for October 22, 2013, after which Rules 

207, 206 and 101 will be forwarded to US EPA for inclusion into the SIP. 

IX RECOMMENDATIONS

A. APCD ADVISORY BOARD

The Air Pollution Control District Advisory Board is scheduled to meet on October 10, 

2013 to discuss the proposed revisions to Rules 101, 206 and 207. Once the final 

recommendation is made by the Air Pollution Control District Advisory Board this 

section of the Draft Staff Report will be updated and the final recommendation will be 

announced during the scheduled Public Hearing on October 22, 2013. 

B. STAFF RECOMMENDATION

ICAPCD staff recommends the adoption of the proposed revisions to Rule 207, New 

and Modified Stationary Source Review; Rule 206, Processing of Applications; and Rule 

101, Definitions. After considering public comments at today’s hearing, District staff 

recommends that this Air Board determine that the adoption of revised Rule 207, 

revised Rule 206, and revised Rule 101 are exempt from CEQA and adopt this rule for 

inclusion in the Imperial County’s State Implementation Plan (SIP).

X DECLARATION OF FINDING

The Imperial County Air Pollution Control District Board hereby finds as follows: 

The adoption of the proposed revised rules for the Imperial County, is considered a 

project within the meaning of §21065 of the California Environmental Quality Act 

(CEQA).

The adoption of the staff report and its findings are exempt from the requirements of 

Public Resources Code Section 21000 et seq. under the CEQA Guidelines, in the 

California Code of Regulations §15061 (b)(3).

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The District is a regulatory agency and the public agency with the principle responsibility 

for carrying out projects related to air pollution and the control thereof.

Clean air is a valuable and essential natural resource.

The proposed revised rules will serve to reduce the amount of criteria air pollutants 

introduced into the ambient air.

The adoption of the proposed revised rules will serve to enhance and protect the 

environment by controlling air pollutant sources of criteria pollutants.

There has been no evidence presented to suggest that the implementation of the 

proposed revised rules, the staff report, or its findings will have an adverse effect on the 

environment.

There has been no evidence presented to suggest that the implementation of the 

proposed revised rules, the staff report, or its findings will lead to or result in cumulative 

adverse impacts.

Health and Safety Code §40702 provides the authority to the 

District to enact and adopt the proposed revised rules.

The requirements of the proposed revised rules, the staff report, and it’s findings are 

clear and capable of being understood by those persons directly affected by it.

The proposed revised rules, the staff report, and its findings do not conflict with or 

contradict any existing statute, court decision, or state or federal regulation.

The requirements of the proposed revised rules, the staff report, and it’s findings are not 

duplicative of any existing state or federal regulation.

The proposed revised rules, the staff report, and it’s findings described herein will not 

significantly affect air quality or emissions limitations and therefore is exempt from 

California Health and Safety Code section §40728.5 (d), which requires a 

socioeconomic impact analysis of the proposed action to be performed. 

The Imperial County has a population of less than 500,000 people.

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