2001 - 1

(Adopted October 15, 1993)(Amended December 7, 1995)

(Amended February 14, 1997)(Amended May 11, 2001)(Amended January 7, 2005)

(Amended May 6, 2005)

RULE 2001. APPLICABILITY

(a) Purpose

This rule specifies criteria for inclusion in RECLAIM for new and existing

facilities. It also specifies requirements for sources electing to enter RECLAIM

and identifies provisions in District rules and regulations that do not apply to

RECLAIM sources.

(b) Criteria for Inclusion in RECLAIM

The Executive Officer will maintain a listing of facilities which are subject to

RECLAIM. The Executive Officer will include facilities, unless otherwise

exempted pursuant to subdivision (i), if emissions fee data for 1990 or any

subsequent year filed pursuant to Rule 301 - Permit Fees, shows four or more

tons per year of NOx or SOx emissions where:

(1) NOx emissions do not include emissions from:

(A) any NOx source which was exempt from permit pursuant to Rule

- 219 Equipment Not Requiring A Written Permit Pursuant to

Regulation II;

(B) any NOx process unit which was rental equipment with a valid

District Permit to Operate issued to a party other than the facility;

(C) on-site, off-road mobile sources; or

(D) ships as specified in Rule 2000(c)(62)(C) and (D).

(2) SOx emissions do not include emissions from:

(A) any SOx source which was exempt from permit pursuant to Rule -

219 Equipment Not Requiring A Written Permit Pursuant to

Regulation II; or

(B) any SOx source that burned natural gas exclusively, unless the

emissions are at a facility that elected to enter the program

pursuant to subparagraph (i)(2)(A); or

(C) any SOx process unit which was rental equipment with a valid

District Permit to Operate issued to a party other than the facility;

(D) on-site, off-road mobile sources; or

(E) ships as specified in Rule 2000(c)(62)(C) and (D).
Rule 2001 (Cont.) (Amended May 6, 2005)

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The Executive Officer will not include a facility in RECLAIM if a permit holder

requests exclusion no later than January 1, 1996 and demonstrates prior to

October 15, 1993 through the addition of control equipment, the possession of a

valid Permit to Construct for such control equipment, or a Permit to Operate

condition that the emissions fee data received pursuant to Rule 301, which

shows emissions equal to or greater than four tons per year of a RECLAIM

pollutant, is not representative of future emissions.

(c) Amendments to RECLAIM Facility Listing

(1) The Executive Officer will amend the RECLAIM facility listing to add,

delete, change designation of any facility or make any other necessary

corrections upon any of the following actions:

(A) Approval by the Executive Officer pursuant to Rule 2007 -

Trading Requirements, of the permanent transfer or

relinquishment of all RTCs applicable to a facility.

(B) Approval by the Executive Officer of a change of Facility Permit

holder or change of facility name.

(C) Approval by the Executive Officer of a Facility Permit for a new

facility if such new facility would, under RECLAIM, have a

starting Allocation equal to or greater than four tons per year of a

RECLAIM pollutant NOx or SOx, unless the facility would be

exempt pursuant to subdivision (i).

(D) Approval by the Executive Officer of a Facility Permit for an

existing non-RECLAIM facility, which reports NOx or SOx

emissions pursuant to Rule 301 - Permit Fees, for any year which

are equal to or greater than four tons, as specified in subdivision

(b), unless the facility would be exempt pursuant to subdivision

(i).

(E) Approval by the Executive Officer of the election of a facility to

enter the RECLAIM program pursuant to subdivision (f).
Rule 2001 (Cont.) (Amended May 6, 2005)

2001 - 3

(F) Upon delegation of authority from EPA to the District for Outer

Continental Shelf (OCS) sources and inclusion of RECLAIM in

40 CFR Part 55 pursuant to the consistency update process, such

OCS sources shall be RECLAIM facilities. The OCS sources'

starting Allocation for the year of entry and Allocations for the

years 2000 and 2003 and interim years, shall be determined

pursuant to Rule 2002 - Allocations for Oxides of Nitrogen

(NOx) and Oxides of Sulfur (SOx), except that fuel usage and

emissions data reported to the Minerals Management Service of

the Department of the Interior be utilized where emissions data

reported pursuant to Rule 301 is not available, provided that the

permit holder substantiates the accuracy of such fuel usage and

emissions data. The starting Allocation shall be adjusted to

reflect the rate of reduction which would have been applicable to

the facility if it had been in the RECLAIM program as of October

15, 1993.

(2) The actions specified in this subdivision shall be effective only upon

amendment of the Facility Listing.

(d) Cycles

(1) The Executive Officer will assign RECLAIM facilities to one of two

compliance cycles by computer-generated random assignment which, to

the extent possible, ensures an even distribution of RTCs. The Facility

Listing will distinguish between Cycle 1 facilities, which will have a

compliance year of January 1 to December 31 of each year, and Cycle 2

facilities, with a compliance year of July 1 to June 30 of each year.

(2) The issue and expiration dates of the RTCs allocated to a facility shall

coincide with the beginning and ending dates of the facility's compliance

year.

(3) Within 30 days of October 15, 1993, facilities assigned to Cycle 2 may

petition the Executive Office or the Hearing Board to change their cycle

designation. Facilities assigned to Cycle 1 may not petition the

Executive Officer or Hearing Board to change their cycle designation.

Facilities entering the RECLAIM program after October 15, 1993 will be

assigned to the cycle with the greatest amount of time remaining in the

compliance year.
Rule 2001 (Cont.) (Amended May 6, 2005)

2001 - 4

(e) High Employment/Low Emissions (HILO) Facility Designation

A new facility may, after January 1, 1997 apply to the District for classification

as a HILO Facility. The Executive Officer will approve the HILO designation

upon the determination that the emission rate for NOx, SOx, ROC, and PM10 is

less than or equal to one-half (1/2) of any target specified in the AQMP for

emissions per full-time manufacturing employee by industry class in the year

2010.

(f) Entry Election

(1) A non-RECLAIM facility may elect to permanently enter the RECLAIM

program, provided that:

(A) the owner or operator files an Application for Entry;

(B) the facility is not listed as exempt under paragraph (i)(1);

(C) the facility is not operating under an Order for Abatement or in

violation of any District rule; and

(D) the facility is not subject to a compliance date in an existing rule

within six months of the date of Application for Entry.

(2) Upon approval of an Application for Entry, the Executive Officer will

issue a Facility Permit. The facility's starting Allocation for the year of

entry and Allocations for the years 2000 and 2003 and interim years,

shall be determined pursuant to Rule 2002 - Allocations for Oxides of

Nitrogen (NOx) and Oxides of Sulfur (SOx). If necessary, the Allocation

shall be adjusted to equal the Allocations which would have been

applicable to the facility if it had been subject to the RECLAIM program

as of October 15, 1993.

(3) Entry into the RECLAIM program will be effective upon issuance of a

Facility Permit pursuant to Rule 2006 - Permits, and publication of the

addition of the facility to the Facility Listing.

(g) Exit from RECLAIM

No facility, on the initial Facility Listing or subsequently admitted to

RECLAIM, may opt out of the program.
Rule 2001 (Cont.) (Amended May 6, 2005)

2001 - 5

(h) Non-RECLAIM Facility Generation of RTCs

Non-RECLAIM facilities may not obtain RTCs due to a shutdown or curtailment

of operations which occurs after October 15, 1993. ERCs generated by nonRECLAIM facilities may not be converted to RTCs if the ERCs are based on a

shutdown or curtailment of operations after October 15, 1993.

(i) Exemptions

(1) The following sources, including those that are part of or located on a

Department of Defense facility, shall not be included in RECLAIM and

are prohibited from electing to enter RECLAIM:

(A) dry cleaners;

(B) fire fighting facilities;

(C) construction and operation of landfill gas control, processing or

landfill gas energy recovery facilities;

(D) facilities which have converted all sources to operate on electric

power prior to October 15, 1993;

(E) police facilities;

(F) public transit;

(G) restaurants;

(H) potable water delivery operations;

(I) facilities located in the Riverside County portions of the Salton

Sea and Mojave Desert Air Basins, except for a facility that has

elected to enter the RECLAIM program pursuant to subparagraph

(i)(2)(M); and

(J) facilities that have permanently ceased operations of all sources

before January 1, 1994.

(2) The following sources, including those that are part of or located on a

Department of Defense facility, shall not be initially included in

RECLAIM but may enter the program pursuant to subdivision (f):

(A) electric utilities (exemption only for the SOx program);

(B) equipment rental facilities;

(C) facilities possessing solely "various location" permits;

(D) hospitals;

(E) prisons;

(F) publicly owned municipal waste-to-energy facilities;
Rule 2001 (Cont.) (Amended May 6, 2005)

2001 - 6

(G) portions of facilities conducting research operations;

(H) schools or universities;

(I) sewage treatment facilities which are publicly owned and

operated consistent with an approved regional growth plan;

(J) electric power generating systems owned and operated by the

City of Burbank, City of Glendale or City of Pasadena or any of

their successors;

(K) ski resorts;

(L) facilities located on San Clemente Island;

(M) any electric generating facility that has submitted complete permit

applications for all equipment requiring permits at the facility on

or after January 1, 2001 may elect to enter the NOx RECLAIM

program if the facility is located in the Riverside County portions

of the Salton Sea or Mojave Desert Air Basins; and

(N) facilities that are an agricultural source as defined in California

Health and Safety Code § 39011.5.

(j) Rule Applicability

Facilities operating under the provisions of the RECLAIM program shall be

required to comply concurrently with all provisions of District rules and

regulations, except those provisions applicable to NOx emissions under the

rules listed in Table 1, shall not apply to NOx emissions from NOx RECLAIM

facilities, and those provisions applicable to SOx emissions of the rules listed in

Table 2 shall not apply to SOx emissions from SOx RECLAIM facilities after

the later of the following:

(1) December 31, 1994 for Cycle 1 facilities and June 30, 1995 for Cycle 2

facilities; or

(2) the date the facility has demonstrated compliance with all monitoring and

reporting requirements of Rules 2011 or 2012, as applicable.

Notwithstanding the above, NOx and SOx RECLAIM facilities shall not be

required to comply with those provisions applicable respectively to NOx and

SOx emissions of the listed District rules in Tables 1 and 2 which have initial

implementation dates in 1994. The Facility Permit holder shall comply with all

other provisions of the rules listed in Table 1 and 2 relating to any other

pollutant.
Rule 2001 (Cont.) (Amended May 6, 2005)

2001 - 7

Table 1

EXISTING RULES

NOT APPLICABLE TO RECLAIM FACILITIES FOR

REQUIREMENTS PERTAINING TO NOX EMISSIONS

RULE DESCRIPTION

218 Stack Monitoring

429 Start-up & Shutdown Exemption Provisions for NOx

430 Breakdown Provision

474 Fuel Burning Equipment - NOx

476 Steam Generating Equipment

1109 Emis. of NOx Boilers & Proc. Heaters in Petroleum

Refineries

1110 Emis. from Stationary I. C. Engines (Demo.)

1110.1 Emis. from Stationary I. C. Engines

1110.2 Emis. from Gaseous and Liquid-Fueled I. C. Engines

1112 Emis. of NOx from Cement Kilns

1117 Emis. of NOx from Glass Melting Furnaces

1134 Emis. of NOx from Stationary Gas Turbines

1135 Emis. of NOx from Electric Power Generating Systems

1146 Emis. of NOx from Boilers, Steam Generators, and Proc.

Heaters

1146.1 Emis. of NOx from Small Boilers, Steam Generators, and

Proc. Heaters

1159 Nitric Acid Units - Oxides of Nitrogen

Reg. XIII New Source Review
Rule 2001 (Cont.) (Amended May 6, 2005)

2001 - 8

Table 2

EXISTING RULES

NOT APPLICABLE TO RECLAIM FACILITIES FOR

REQUIREMENTS PERTAINING TO SOX EMISSIONS

RULE DESCRIPTION

53 Sulfur Compounds - Concentration - L.A.

County

53 Sulfur Compounds - Concentration - Orange

County

53 Sulfur Compounds - Concentration - Riverside

County

53 Sulfur Compounds - Concentration - San

Bernardino County

53A Specific Contaminants - San Bernardino

County

218 Stack Monitoring

430 Breakdown Provisions

407 Liquid and Gaseous Air Contaminants

431.1 Sulfur Content of Gaseous Fuels

431.2 Sulfur Content of Liquid Fuels

431.3 Sulfur Content of Fossil Fuels

468 Sulfur Recovery Units

469 Sulfuric Acid Units

1101 Secondary Lead Smelters/Sulfur Oxides

1105 Fluid Catalytic Cracking Units SOx

1119 Petroleum Coke Calcining Operations - Oxides

of Sulfur

Reg. XIII New Source Review