# Proposed August 18, 2011

2020 - 1 Proposed Amendments to Rule 2020 RULE 2020 EXEMPTIONS (Adopted September 19, 1991; A mended July 16, 1992; Amended

December 17, 1992; Amended October 21, 1993; Amende d July 21, 1994; Amended September 17, 1998; Amended June 21, 2001; Amended March 21, 2002; Amended December 19, 2002; Amended September 21, 20 06; Amended December 20, 2007; Amended [ rule adoption date ])

1.0 Purpose

This rule specifies emissions units that are not re quired to obtain an Authority to Construct or Permit to Operate. This rule also specifies the recordkeeping requirements to verify the exemption and outlines the compliance schedule for emissions units that lose the exemption

after installation.

2.0 Applicability

This rule shall apply to any source that emits or may emit air contaminants.

3.0 Definitions

3.1 Agricultural Source: equipment or operations t hat emit air contaminants and that are

used in the production of crops or the raising of f owl or animals.

3.2 3.1 Clean Produced Water: as defined in Rule 1 020 (Definitions).

3.3 3.2 Emissions Unit: as defined in Rule 2201 ( New and Modified Stationary Source

Review Rule).

3.4 3.3 HAP: a hazardous air pollutant listed in Section 112(b) of the federal Clean Air Act

or the lists prepared by the California Air Resourc es Board pursuant to Section 44321 of the California Health and Safety Code that have OEHHA approved health

risk values.

3.5 3.4 HAP Source: an emissions unit that is sub ject to an emissions limitation, a performance standard, work practice standard, or ot her requirements under an applicable provision of any of the following regula tions:

3.5.1 3.4.1 National Emission Standards for Hazar dous Air Pollutants

(NESHAPS), Maximum Achievable Control Technology (M ACT) standard, or other requirements promulgated pursuant to Secti on 112 of the federal Clean Air Act (42 U.S. Code, 7401, et. seq.).

3.5.2 3.4.2 Airborne Toxic Control Measures (ATCM ) adopted by the

California Air Resources Board in accordance with r equirements of Section 39658 of the California Health and Safety Code.

# Proposed August 18, 2011

2020 - 2 Proposed Amendments to Rule 2020 3.5.3 3.4.3 A rule contained in Regulation VII (Toxic Air Pollutants) of the District Rules and Regulations.

3.6 3.5 Indirect Heat Transfer System: heat transfe r system: a heat transfer system in which the products of combustion do not come into direct contact with the material being

heated.

3.7 3.6 Location: any single site at a building, s tructure, facility, or installation.

3.8 3.7 Low Emitting Unit: an emissions unit with an uncontrolled emissions rate of each air contaminant,

3.8.1 3.7.1 Less than or equal to two pounds per d ay or,

3.8.2 3.7.2 If greater than two pounds per day, is less than or equal to 75 pounds

per year.

3.9 Major Source: as defined in Rule 2201 (New and Modified Stationary Source Review Rule).

3.10 3.8 NSPS Source: an emissions unit that is s ubject to an emissions limitation,

performance standard, work practice standard, or ot her requirements under an applicable provision of 40 CFR, Part 60, New Source Performance Standards (NSPS).

3.11 3.9 Portable Emissions Unit: as defined in Ru le 2280 (Portable Equipment Registration).

3.12 3.10 Reconstructed Stationary Source: a Recon structed Stationary Source as defined in Rule 2201 (New and Modified Stationary S ource Review), or a Reconstruction as defined in 40 CFR Part 60 Subpart A.

3.13 3.11 Roadmix: a mixture of tank bottoms from crude oil storage tanks, material from crude oil spills, or other crude-oil-containin g soil mixed with aggregates and soils, that is used as a base or cover material for roads, parking lots, berms, tank and well locations, or similar applications.

3.14 3.12 Routine Replacement: as defined in Rule 2201 (New and Modified Stationary Source Review).

3.15 3.13 Stationary Source: as defined in Rule 22 01 (New and Modified Stationary Source Review).

3.16 3.14 True Vapor Pressure: as defined in Rule 4623 (Storage of Organic Liquids).

# Proposed August 18, 2011

2020 - 3 Proposed Amendments to Rule 2020 3.17 3.15 Unloading Rack: any aggregate or combina tion of equipment or control equipment that unloads organic liquid into a storag e tank from tank trucks, trailers, or railroad tank cars. The unloading rack is the p ortion of the connection system from the connection at the inlet of the organic liq uid pump to and including the hose and connector at the delivery tank.

3.18 Wind Machine: a machine consisting of a large fan mounted on a tower and powered by an internal combustion engine, used excl usively to provide frost protection to agricultural crops by affecting a hea t transfer by moving warmer atmospheric air downward and mixing it with the col der air surrounding a crop.

4.0 Precluded Source Categories

No Authority to Construct or Permit to Operate sha ll be required for the following source categories that are specifically precluded from Dis trict permitting requirements by state or

federal law:

4.1 Any structure designed for and used exclusivel y as a dwelling for not more than four

families and any incinerator used exclusively in co nnection with such structure (California Health and Safety Code Section 42310(b) and (c)).

4.2 Barbecue equipment that is not used for commer cial purposes, (California Health

and Safety Code Section 42310(d)).

4.3 Motor vehicles as defined by the Vehicle Code of the State of California (California

Health and Safety Code, Section 42310(a)), but not including any emissions unit mounted on such vehicle that would otherwise requir e a permit under the provisions of the District Rules and Regulations.

4.4 Locomotives, airplanes, and watercraft used to tran sport passengers or freight. This exemption is not intended to apply to equipment use d for the dredging of waterways or to equipment used in pile driving adjacent to or in waterways.

5.0 District Permit Exemptions

An Authority to Construct or Permit to Operate shal l not be required for an emissions unit covered under District Exempt Source Categories lis ted in Sections 6.0 or 7.0, unless one or more of the following is true:

5.1 The source is a NSPS source;

5.2 The source is a HAP source;

5.3 The APCO makes a determination that a permit s hall be required because the source

may not operate in compliance with all District rul es and regulations; or

# Proposed August 18, 2011

2020 - 4 Proposed Amendments to Rule 2020 5.4 The owner specifically requests a Permit to Op erate.

6.0 District Exempt Source Categories

Except as required by Section 5.0, no Authority to Construct or Permit to Operate shall be required for an emission unit specified below. All other equipment within that source category shall require an ATC or PTO.

6.1 Combustion and Heat Transfer Systems

6.1.1 Steam generators, steam superheaters, water boilers, water heaters, steam cleaners, and closed indirect heat transfer systems that have a maximum input heat rating of 5,000,000 Btu per hour (gross) or less and is equipped to be fired exclusively with:

6.1.1.1 Natural gas containing no more than five (5 ) percent by weight

hydrocarbons heavier than butane and no more than 1 .0 grain of total sulfur per 100 standard cubic feet of gas; or

6.1.1.2 Liquefied petroleum gas containing no more than two (2) percent

by volume hydrocarbons heavier than butane and no m ore than 15 grains of total sulfur per 100 standard cubic fe et of gas; or

6.1.1.3 Any combination of gases specified in Secti ons 6.1.1.1 and

6.1.1.2.

6.1.1.4 The percent by weight hydrocarbons content heavier than butane

shall be determined by using the latest version of ASTM E-260 (Standard Practice for Packed Column Gas Chromatogr aphy).

6.1.1.5 The gas sulfur content shall be determined by using the latest

version of ASTM D-1072 (Standard Test Method for To tal Sulfur in Fuel Gases by Combustion and Barium Chlor ide Titration), ASTM D-3246 (Standard Test Method for S ulfur in Petroleum Gas by Oxidative Microcoulometry), or AST M D6228 (Standard Test Method for Determination of Sul fur Compounds in Natural Gas and Gaseous Fuels by Gas Chromatography and Flame Photometric Detection).

6.1.1.6 Test methods other than specified in Sectio n 6.1.1.4 or Section

6.1.1.5 may be used provided they have been approve d, in writing, by the United States Environmental Protect ion Agency (EPA) and the District Air Pollution Control Office r (APCO).

# Proposed August 18, 2011

2020 - 5 Proposed Amendments to Rule 2020 6.1.2 Piston type internal combustion engines wit h a manufacturer's maximum

continuous rating of 50 braking horsepower (bhp) or less.

6.1.3 Gas turbine engines with a maximum heat input rating of 3,000,000 Btu per hour or less at ISO Standard Day Conditions.

6.1.4 Equipment used exclusively for space heating, other than boilers.

6.1.5 Multiple chambered or equivalent incinerators used to destroy animals from a wildlife habitat for the sole purpose of disease control, as authorized by a public official.

6.1.6 Wind machines.

6.2 Cooling Towers: Water cooling towers that have a circulation rate of less than 10,000 gallons per minute, and that are not used fo r cooling of process water, water from barometric jets, or water from barometric cond ensers.

6.3 Graphic Arts Equipment: Printing, coating, or laminating facility with a total graphic arts material usage of:

6.3.1 Less than or equal to two gallons per any day or,

6.3.2 If greater than two gallons per day, is less than or equal to 30 gallons per

year.

6.3.3 Graphic arts materials are any ink, coating, adhesive, fountain solution, thinner, retarder, or cleaning solution.

6.4 Food Processing Equipment

6.4.1 Equipment, excluding charbroilers subject to Rule 4 692 (Commercial Charbroiling) and boilers, used in eating establish ments or other retail establishments for the purpose of preparing food fo r human consumption.

6.4.2 Mixers and blenders used in bakeries where the products are edible and

intended for human consumption.

# Proposed August 18, 2011

2020 - 6 Proposed Amendments to Rule 2020 6.4.3 Ovens at bakeries provided that the total p roduction from the bakery is less

than 1,000 pounds of product per operating day and the oven is fired solely on natural gas and the oven has a rating less than 5 MMBtu per hour.

6.4.4 Smokehouses for preparing food in which the maximum horizontal inside

cross-sectional area does not exceed 20 square feet

.

6.5 Plastic/Rubber Processing: Emissions units used ex clusively for the extruding or the compression molding of rubber products or plast ics, where no plasticizer or blowing agent is present.

6.6 Storage Equipment: Containers, reservoirs, or tanks used exclusively for:

6.6.1 The storage or processing of clean produced w ater as represented in Figure 1 as being below the oil/water line.

6.6.2 The storage of crude oil with 0.8762 specif ic gravity or higher (30oAPI or lower) as measured by test method API 2547 or ASTM D-1298-80, having a capacity of 100 bbl or less, and is not subject to a VOC control requirement of Rule 4623 (Storage of Organic Liquids).

6.6.3 The storage of crude oil with specific grav ity lower than 0.8762 (greater than

30oAPI) as measured by test method API 2547 or ASTM D-1298-80, and existing before June 1, 1989, having a capacity of 100 bbl or less, and is not subject to a VOC control requirement of Rule 4623 ( Storage of Organic Liquids). This exemption shall not apply to a new t ank installed after June 1,

1989.

6.6.4 The storage of organic material with a capaci ty of 250 gallons or less where the actual storage temperature does not exceed 150o F.

6.6.5 The unheated storage of organic material with an initial boiling point of 302oF or greater as measured by test method ASTM D- 86.

6.6.6 The storage of fuel oils or non-air-blown asp halt with 0.9042 specific gravity or higher (25oAPI or lower) as measured by test method API 2547 or

ASTM D-1298-80.

6.6.7 The storage of petroleum distillates used as motor fuel with 0.8251 specific gravity or higher (40oAPI or lower) as measured by test method API 2547 or ASTM D-1298-80 and having a capacity of 19,800 gall ons (471 bbl) or less.

6.6.8 The storage of refined lubricating oils.

# Proposed August 18, 2011

2020 - 7 Proposed Amendments to Rule 2020 6.6.9 The storage of liquefied gases in unvented (e xcept for emergency pressure relief valves) pressure vessels.

6.6.10 The storage of produced fluids in portable t anks, to be used for less than six months at any one (1) location and is not subject t o a VOC control requirement of Rule 4623 (Storage of Organic Liquid s).

6.6.11 Mobile transport, delivery, or cargo tanks o n vehicles for delivery of VOCs.

6.7 Transfer Equipment

6.7.1 Loading racks, as defined in Rule 1020 (Defin itions), and unloading racks

that are:

6.7.1.1 At a location that, in total, transfers les s than 4,000 gallons in any one day of organic material through all loading and unloading racks, and the organic material is exclusively:

6.7.1.1.1 Unheated organic materials with an initia l boiling point

of 302oF or greater as measured by test method ASTM D-86, or

6.7.1.1.2 Fuel oil with 0.8251 specific gravity or higher (40oAPI

or lower) as measured by test method API 2547 or

ASTM D-1298-80.

6.7.1.2 Used exclusively for the transfer of:

6.7.1.2.1 Crude oil, asphalt, or residual oil store d in tanks not

required to be permitted in accordance with this ru le; or

6.7.1.2.2 Crude oil with 0.8762 specific gravity or higher (30oAPI or lower) as measured by test method API 2547 or

ASTM D-1298-80 and the crude oil has TVP less than 1.5 psia at the storage container’s maximum organic liquid storage temperature.

6.7.1.3 Attached to an organic material delivery v ehicle and used exclusively for the transfer of crude oil, asphalt, or residual oil.

6.7.2 Equipment used exclusively for the transfer o f refined lubricating oil.

6.7.3 The TVP of an organic liquid shall be determined by measuring the Reid Vapor Pressure (RVP) using ASTM D 323-94 (Test Meth od for Vapor Pressure for Petroleum Products), and converting th e RVP to TVP at the

# Proposed August 18, 2011

2020 - 8 Proposed Amendments to Rule 2020 tank’s maximum organic liquid storage temperature. The conversion of RVP to TVP shall be performed in accordance with th e procedures in the oil and gas section of “ARB Technical Guidance Docu ment to the Criteria and Guidelines Regulation for AB 2588”, dated Augus t 1989.

6.7.4 The latest version of the Lawrence Berkeley Nationa l Laboratory “Test Method for Vapor Pressure of Reactive Organic Compo unds in Heavy Crude Oil Using Gas Chromatograph”, as approved by ARB and EPA,

shall be used to determine the TVP of crude oil wit h an API gravity of 26 degrees or less, or for any API gravity that is spe cified in this test method.

6.7.5 Test method other than specified in Section 6 .7.3 and 6.7.4 may be used provided it has been approved, in writing, by the U nited States Environmental Protection Agency (EPA) and the Distr ict Air Pollution Control Officer (APCO).

6.8 Surface Coating Operations

6.8.1 Application equipment for architectural surfa ce coatings used for commercial or residential applications. Architectu ral surface coating is defined as any coating applied to stationary struct ures and their appurtenances, to mobile homes, to pavements, or to curbs. This exemption does not apply to coating application equipment use d in the manufacturing of architectural components and appurtenances that are coated before their installation as part of a structure.

6.8.2 Surface coating operations, except for powder coating operations, which use less than one quart of coating per day or less than eight gallons of coating

per year.

6.8.3 Powder coating operations that use less than five pounds of coating material per day or less than fifty pounds of coating materi al per year.

6.9 Solvent Cleaning Operations

Unheated, nonconveyorized cleaning equipment (not including the control enclosures):

6.9.1 With an open surface area of 10.0 square fe et or less, and internal volume of

92.5 gallons or less;

6.9.2 Using only organic solvents with an initial boiling point of 248oF or greater

as determined by ASTM 1078-78; and

# Proposed August 18, 2011

2020 - 9 Proposed Amendments to Rule 2020 6.9.3 From which less than 25 gallons of solvent per year are lost to the

atmosphere from all such equipment at the stationar y source. Solvent lost shall not include solvent that is recycled or dispo sed of properly. Any person claiming exemption pursuant to this section shall maintain adequate monthly records to substantiate their exempt status

.

6.10 Brazing, soldering, or welding equipment.

6.11 Equipment used exclusively to compress or hol d dry natural gas. Any internal

combustion engine or other emissions unit associate d with the operation that would otherwise require a written permit is not exempt.

6.12 Fugitive emissions sources such as valves and flanges associated with an emissions unit that is exempt from a written permit.

6.13 Unvented (except for emergency pressure relie f valves) pressure vessels associated

with an emissions unit that is exempt from a writte n permit.

6.14 Fugitive emissions sources and pressure vessels tha t are associated with an emissions unit for which a written permit is requir ed shall be included as part of such emissions unit. A separate permit for the fug itive source or pressure vessel is not required.

6.15 Pits and ponds as defined in Rule 1020 (Definitions ).

6.16 Portable Emissions Units: a portable emissio ns unit for which a written permit is

otherwise required, shall be exempt from the permit ting requirements provided that all of the following conditions are met:

6.16.1 The emissions unit has a valid registratio n obtained in accordance with the

provisions of Rule 2280 (Portable Equipment Registr ation), the Statewide Portable Equipment Registration Program (California Code of Regulation Title 13, Division 3, Chapter 9, Article 5, Section s 2450-2465), or other equipment registration program approved by the APCO ; and

6.16.2 The portable emissions unit is not subject to the D istrict's Title V permitting requirements (Rule 2520, Federally Mandated Operati ng Permits).

# Proposed August 18, 2011

2020 - 10 Proposed Amendments to Rule 2020 6.17 Roadmix manufacturing and application operatio ns

6.17.1 Roadmix manufacturing operations, provided that:

6.17.1.1 The roadmix is used exclusively on properties owned or operated by the company which operates the roadmix manufactu ring operation and generated the roadmix feedstock, excl uding aggregates, and

6.17.1.2 The roadmix feedstock does not contain refined hydr ocarbons.

6.17.1.3 Notwithstanding the provisions of Section 6.17.1.1, an exempt

roadmix manufacturing operator may donate roadmix m aterial to non-profit organizations.

6.17.2 Roadmix application operations.

6.18 Laboratory testing equipment and quality control te sting equipment used exclusively for chemical and physical analysis, provided:

6.18.1 Emissions from such equipment do not exceed 2.0 pounds per day or 75 pounds per year, and

6.18.2 The equipment is not a HAP source.

6.19 Low Emitting Units, except those which belong to a source category listed in

Sections 6.1 through 6.18 shall not require an Auth ority to Construct or Permit to Operate.

6.19.1 Low Emitting Units, which belong to a source category listed in Sections 6.1 through 6.18, shall require an Authority to Constru ct or Permit to Operate unless they are specifically exempted in the applic able source category

section.

6.19.2 Notwithstanding Sections 6.19 and 6.19.1, Lo w Emitting Units, with uncontrolled HAP emissions that may cause a signifi cant health risk to the public, shall require an Authority to Construct or Permit to Operate.

6.20 Agricultural Sources

sources, but only to the extent provided by Califor nia Health and Safety Code (CH&SC), Section 42301.16.

6.20.1 Agricultural sources at a stationary sourc e that, in aggregate, produce actual

emissions less than one-half of the major source th resholds. For the

# Proposed August 18, 2011

2020 - 11 Proposed Amendments to Rule 2020 purposes of determining permitting applicability, f ugitive emissions, except fugitive dust emissions, are included in determinin g aggregate emissions.

6.20.2 In no case shall the exemption in Section 6. 20.1 apply to a stationary source required to obtain Title V permits according to Rul e 2520 (Federally Mandated Operating Permits).

7.0 District Exempt Activities

No Authority to Construct or Permit to Operate sha ll be required for the following

activities:

7.1 Routine replacement of a whole or partial emis sions unit where the replacement part

is the same as the original emissions unit in all r espects except for the serial number

and the action does not create a reconstructed Stat ionary Source.

7.2 The venting of California Public Utility Commi ssion quality natural gas from

pipelines and compressors for the sole purpose of p ipeline and compressor repair and or maintenance, providing that such emissions c onsist solely of residual natural gas that is vented after the equipment is isolated or shut down and that the residual amounts have been reduced as much as practical prio r to venting.

7.3 Repairs or maintenance not involving structura l changes to any emissions unit for

which a permit has been granted (California Health and Safety Code, Section 42310(a)(5)(A)).

7.4 The detonation of explosives for research and development activity, provided the

quantity of explosives detonated does not exceed 10 0 pounds per day and 1,000 pounds per year at a single stationary source.

7.5 Pilot tests for soil remediation projects, pro vided that all of the following conditions

are met:

7.5.1 The sole purpose of the pilot test is to det ermine the VOC concentration in

the soil in order to design or size the appropriate control equipment for the soil remediation project;

7.5.2 The pilot test will not last more than five days; and

7.5.3 The effluent gas stream from the pilot test is controlled by either carbon

canisters, a thermal or catalytic incinerator, or a n IC engine.

# Proposed August 18, 2011

2020 - 12 Proposed Amendments to Rule 2020 8.0 Administrative Requirements

Recordkeeping shall be required to verify or maint ain any exemption for which the exemption is based on a throughput or emissions lim itation. Such records shall be retained for at least two years and provided to the APCO upo n request.

9.0 Compliance Schedule

The owner or operator of an emissions unit that wa s exempt from written permits at the time of installation, which becomes subject to the provisions of Rule 2010 (Permits Required), through loss of exemption, shall submit an application for a Permit to Operate within six months from the date of adoption of this rule and shall not be subject to Rule 2201 (New and Modified Stationary Source Review Rul e), until such time that the

emissions unit is modified.

# Proposed August 18, 2011

2020 - 13 Proposed Amendments to Rule 2020 Heat Exchanger Oil
and Water

Steam

To
Sales Oil and
Water

Oil

Depurator

Depurator

To Steam
Generation Equipment Valve

Reject Oil
and Water

WaterWater& Hydrocarbons

Water Water Noncondensible
Gas to
Incinerator
or Vent

To Injection
Well Water
Source Oil
Well

Spent Regeneration Brine

Backwash Drain
Tank

Settling

Tank Shipping

Tank Wash
Tank Desander Gauge
Tank

Condensate
Tank Schematic
Production Facilities
for Crude Oil

Water Oil

Raw Water
Tank Produced
Water Tank

Filtered
Water Tank Brine Tank Softeners Filters

Soft Water
Tank Waste Water
Tank

Figure1 Oil/water line

# Proposed August 18, 2011

2020 - 14 Proposed Amendments to Rule 2020 This page intentionally blank.