# Eastern Kern Air Pollution Control District



# Rule 202

PERMIT EXEMPTIONS

FINAL STAFF REPORT

January 13, 2011

Prepared by



### Jeremiah Cravens Air Quality Specialist

Reviewed by



### David L. Jones

Air Pollution Control Officer 

### Glen Stephens Senior Air Quality Engineer

Eastern Kern Air Pollution Control District 2700 “M” Street, Suite 302 Bakersfield, California 93301 (661) 862-5250  www.kernair.org

### Table of Contents

I. BOARD AD OPTION........................................................................ 1

II. INTROD UCTION............................................................................. 1

III. (CH & SC) EXEMPTIO NS............................................................... 1

IV. ADDITIONAL EXEMPTION S .......................................................... 1

V. COMBUSTION EQUIPMEN T.......................................................... 2

VI. VEHIC LES ...................................................................................... 2

VII. FOOD PROCESSI NG EQUIPM ENT............................................... 2

VIII. LIQUID ST ORAGE VESS ELS ........................................................ 2

IX. LOADING RACKS AND EQUIPM ENT............................................ 3

X. AGRICULTURA L SOURCE S.......................................................... 3

XI. AFFECTED POLLUTANT S............................................................. 4

XII. MISCELLANEOU S EXEMPT IONS ................................................. 5

XIII. LOW EMIT TING UNI T .................................................................... 5

XIV. CHANGES IN EM ISSIONS LI MITS ................................................ 6

XV. TEMPORARY SOUR CE OPER ATION ........................................... 6

XVI. PERMITTING OTHERWISE EXEMPT EQUI PMENT ..................... 7

XVII. RECORD KEEPING ......................................................................... 7

XVIII. ECONOMIC IMPACTS ................................................................... 8

XIX. SOCIOECONO MIC IMPAC TS ........................................................ 8

XX. ENVIRONMEN TAL IMPAC TS ........................................................ 8

APPENDIX A AMENDED RULE 202, PERMIT EXEMPTIONS
CLEAN VERSION

APPENDIX B AMENDED RULE 202 PERMIT EXEMPTIONS
STRIKEOUT UNDERLINE VERSION

APPENDIX C RESPONSE TO COMMENTS202 Staff Report

I. BOARD ADOPTION

Rule 202, Permit Exemptions was amended by the Eastern Kern Air Pollution Control District’s Governing Board on January 13, 2011 at the January 2011 Board meeting.

II. INTRODUCTION

This staff report presents the amendments made to Rule 202 Permit Exemptions following the October 28, 2009 workshop and the October 14, 2010 workshop.

Reasons for amending Rule 202 include: up dating and clarifying the provisions of Section I, California Health and Safety Code (CH & SC) Exemptions which includes revisions to Sections I.A, I.B , I.C, and I.D; updating and clarifying the provisions of Section II, Additional Exemptions ; expand and clarify Sections II.A., Combustion Equipment; II.B, Locomotives, Airplanes, and Watercraft; II.E, Food Processing Equipment ; II.G, Liquid Storage Vessels ; II.H, Loading Racks and Equipment ; refine Section II.L, Miscellaneous ; III, Provisions for Permitting Otherwise Exempt Source Operation; adding Sections II.K, Agricultural Sources

, II.M, Low Emitting Unit, and II.N, Temporary Source Operation ; and expanding the requirements of Section IV, Recordkeeping

.

III. (CH & SC) EXEMPTIONS

Section I, California Health and Safety Code (CH & SC) Exemptions has been
revised from: Neither an Authority to Construct nor a P ermit to Operate shall be required for the following ;

To: An Authority to Construct (ATC) or a Permit to Operate (PTO) shall not be required for the following unless an ATC or PTO is required pursuant to Section

III.A of this Rule:

Sections I.A, I.B, I.C, and I.D have minor language changes to aid in clarity and to maintain consistency with terms used in the CH & SC.

IV. ADDITIONAL EXEMPTIONS

Section II, Additional Exemptions has been revised from: Neither an Authority to Construct nor a Permit to Operate sha ll be required for the following unless a written permit is specifically requested by the owner/operator ;

To: An Authority to Construct or a Permit to Operate shall not be required for the following unless a written permit is specifically requested by the owner/operator or an ATC or PTO is required purs uant to Section III of this Rule

.

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V. COMBUST ION EQUIPMENT

Section II.A.2 proposed the following lan guage change in the 10/16/09 strikeout revision of the rule: “50 bhp or less” was changed to “less than 50 bhp”. The 10/11/10 proposed revision of Rule 202 has reverted back to “50 bhp or less”.

The terms “ISO” and “Standard Day Conditi ons” have been deleted from Section II.A.3, because only the term “Standard Cond itions” is defined in District Rule 102. Section II.A.3 revised language is as follows:

Gas turbine engines with a maximum heat i nput rating of 3,000,000 Btu per hour

or less at Standard Conditions as defined in Rule 102, Definitions

.

VI. VEHICLES

The title of Section II.B, Vehicles has been changed to Locomotives, Airplanes,
and Watercraft.

VII. FOOD PROCESSING EQUIPMENT

Minor language changes have been made in Section II.E, Food Processing Equipment, which include changing the term “Bakery oven with total production” in Subsection II.E.2 to: “Ovens used in bakeries producing” and the word
“smokehouses” to “smokehouse” in Subsection II.E.3.

The following exemption for a non-chain driven commercial BBQ grill has also

been added to Section II.E: Non-chain driven commercial use BBQ grill 20 square feet or less

.

VIII. LIQUID STORAGE VESSELS

Language in Section II.G, Liquid Storage Vessels has been revised to clarify that military grade JP-8 is exempt from pe rmit requirements. Section II.G also contains expanded definitions and has been reformatted to aid in clarity. Language for Section II.G is as follows:

Containers, reservoirs, or tanks used exclusively for:

1. Storage of JP-8, NATO F-34, NATO F-35, and JP-8+100 engine fuels as defined in military specific ation number MIL-DTL-83133

2. Storage of unheated organic material with a capacity of 250 gallons or less;

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3. Storage of unheated organic material not used as a fuel with an initial boiling point of 150 ̊ C (302 ̊ F) or greater as measured by test method ASTM D-86;

4. Storage of organic li quids as measured by te st method API 2547 or ASTM

D-1298-80 that include:

a. Storage of petroleum dist illates used as engine fuel with 0.8251 specific gravity or higher (40 ̊ API or lower) and with a capacity of 19,800 gallon (471 bbls) or less;

b. Storage of unrefined oil with spec ific gravity of 0.8762 or higher (30 ̊ API or lower) and with a capacity of 100 bbl or less;

c. Storage of fuel oils or non-air-blown asphalt with 0.9042 specific gravity or higher (25 ̊ API or lower).

5. Storage of refined lubric ating oils and greases;

6. Storage of liquefied gases in unven ted (except for emergency relief ) pressure vessels; and

7. Transporting of liquids on streets or highway s.

IX. LOADING RACKS AND EQUIPMENT

Minor language changes have been made to Section II.H, Loading Racks and Equipment to add clarity to the exemption.

X. AGRICULTURAL SOURCES

Because a portion of the District was designated federal non-attainment for ozone on January 1, 2004, the District must develop, adopt, implement, and submit to the SIP an agricultural rule pursuant to H&S Code section 40724.6. At the request of ARB, Section II.K, Agricultural Sources has been added to Rule 202. Proposed language for Section II.K is as follows:

An Agricultural Facility or Confined Animal F acility (CAF) (as defined in Rule 102, Definitions) that meets all of the following requirements:

1. Actual emissions are less than one-hal f the Major Source thresholds as defined in District Rule 201.1, Permits to Operate for Sources Subject to

Title V of the Federal Clean Air Ac t Amendments of 1990, Section II.U; and

2. Houses quantities of eac h class of animal less than:

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1,000 milk-producing dairy cows; 2,500 horses; 3,000 swine; 3,500 beef cattle; 7,500 calves, heifers, or other cattle; 15,000 sheep, lambs, or goats; 30,000 rabbits or other animals not in this list; 100,000 turkeys; 650,000 chickens other than laying hens; 650,000 laying hens; 650,000 ducks.

XI. AFFECTED POLLUTANTS

Various District rules list either Affected Pollutants or Air Contaminants as being regulated. The District realized this could produce varying interpretations of what is regulated under District rules and cr eate potential problems in developing future Greenhouse Gas (GHG) Regulations . In an effort to add clarity and uniformity to District rules, the District revised Affected Pollutants in Rule 102,
Definitions to include Air Contaminants that are regulated, ei ther by the Clean Air Act, state, or District. GHGs have been ex cluded from the revised definition of
Affected Pollutants because they will be addressed separately in future District

rules

. The District intends to review all rules that list the term Air Contaminants as the regulated substance and evaluate the necessity of revising the term to
Affected Pollutant s.

The District was asked to clarify the intent and interpretation of the terms
Affected Pollutants and Air Contaminants. Although the term Air Contaminants includes any discharge, release, or other propagation into the atmosphere directly or, or indirectly, caused by man, the District is prim arily concerned with air contaminants and precursors to such contaminants regulated under the Clean Air Act or by the state. Substances not regulated under the Clean Air Act or by the state but have potential to produce significant adverse effects on the environment, public health, or public welfar e when used in certain conditions may also be considered by the District to be subject to District control requirements and/or permitting.

An example of such a substance is Iodine (I 2 ) crystal handling. Iodine readily volatilizes from the crystals to a violet gas at room temper ature. Inhalation of Iodine vapor at low levels of exposure is extremely irritating to the respiratory track and can cause tightness in the chest and throat; airflow resistance in the lungs; spasm, inflammation, and fluid a ccumulation in the voice box, upper air ways, and lungs. Symptoms may include coughing, wheezing, laryngitis, and shortness in breath. Although Iodine vapor is not regulated under the Clean Air Act or by the state, it has been determined by the District to be subject to District control and requires a permit in specific operations at levels well below 2 pounds per day in order to prevent release to the atmosphere.

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XII. MISCELLANEOUS EXEMPTIONS

A portion of Section II.L, Miscellaneous has been moved to Section II.M, Low Emitting Unit . The remaining information in Section II.L been condensed into the following four exemptions:

1. Brazing, soldering, or welding equipment. This exemption applies to conventional brazing, soldering, or welding operations only; any internal combustion engine or other equipment associated with these source operations that would otherwise require permits is not exempt;

2. Equipment used exclusively to comp ress or hold dry natural gas; any engine or other equipment associated with such source operations otherwise requiring permits is not exempt;

3. Unvented (except for emergency pressure relief) pressure vessels associated with a source operation ex empt from permit; and

4. Comfort air conditioning or comfor t ventilating systems not designed to remove air contaminants generated by or released from a source operation.

XIII. LOW EMITTING UNIT

In the October 16, 2009 proposed revi sion of Rule 202, Section II.M, Low Emitting Unit was located in Section II.L and titled Low Emitting Unit Not Emitting Toxic Air Contaminants (TAC) . As requested by the EPA, “ Not Emitting Toxic Air Contaminants (TAC) ” was removed from the title of this exempt ion and “(PM10, SOx, NOx, VOC and CO)” was omitted from the description.

The requirements and langu age of Section II.M, Low Emitting Unit have also been revised to reflect comments and suggested changes the District received from ARB, EPA, and industry followin g the October 28, 2009 workshop.

The revised language and requi rements for Section II.N, Low Emitting Unit is as
follows:

A source operation that meet s the emission limits specifi ed in either Subsection 1

or 2 of this section and complies with Section IV, Recordkeeping of this rule.

1. A source operation with a potential to emit any uncontrolled affected pollutant at a rate of less than or equal to 2 pounds in any 24-hour period.

2. A source operation with a potential to emit uncontrolled Oxides of Nitrogen (NOx) or Volatile Organic Compounds (V OCs) at a rate of less than or equal to10 pounds in any 24-hour period and less than or equal to 180 pounds in any calendar year.

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XIV. CHANGES IN EMISSIONS LIMITS

Table 1 reflects the proposed changes in source operation emissions limits in

Rule 202.

Table 1

Emissions

Limits PM 10 SOx NOx VOC CO

Old Limit

Subject to

Rule 301 2 lbs/day 2 lbs/day 10 lbs/day or 180 lbs/qtr < 45 days/year 10 lbs/day or 180 lbs/qtr < 45 days/year 2 lbs/day

Proposed

New Limit < 2 lbs/24hrs & Recordkeeping < 2 lbs/24hrs & Recordkeeping < 2 lbs/24hrs or

< 10 lbs/24hrs &

< 180 lbs/Year & Recordkeeping < 2 lbs/24hrs or

< 10 lbs/24hrs &

< 180 lbs/Year & Recordkeeping < 2 lbs/24hrs & Recordkeeping

XV. TEMPORARY SOURCE OPERATION

Section II.N, Temporary Source Operation replaced Sections II.K.5, II.K.6, and II.K.7. In the October 16, 2009 proposed revision of the Rule, Section II.N, Temporary Source Operation was Section II.M, Temporary Emissions Unit. The exemption requirements for Temporary Emissions Unit were as follows:

Any non-reoccurring temporary piece of equipment with operation not to exceed 30 days and emitting less than 500 pounds of PM 10 , SOx, NOx, VOC or CO and emits de minimis TAC (as defined by Calif ornia Office of Environmental Health Hazard Assessment)

.

Following the October 28, 2009 workshop Section II.M, Temporary Emissions

Unit was moved to Section II.N and its title was changed to Temporary Source Operation . Language for Section II.N, Temporary Source Operation is as follows:

Any source operation, as defined in Rule 102, Definitions that has not occurred in the previous 2 calendar years, will operat e for less than 12 consecutive months, and expected to emit less than 500 pounds of affected pollutants during the operation period.

Any source seeking T emporary Source Operation exemption must comply with provisions 1 and 2 of this section.

1. An application and filing fee in accordance with District Rule 301 shall be submitted to the Control Officer to qua lify for the exemption listed in this section. Additionally, application shall be subject to application processing and priority processing fees as stated in Rule 303. Such application shall

include: identification of source operation, documentation of expected emissions, and proposed form and location of records to be used to verify qualification for exemption. Such r equests shall be acted upon by the District

EKAPCD Final 1/13/2011 6202 Staff Report

within 30 d ays. Each request for reapplic ation shall be accompanied by filing fee in accordance with District Rule 301; and

2. Sufficient records verifying compliance with Tem porary Source Operation

limits shall be collected and maintained in accordance with Section IV.A (Recordkeeping) of this rule.

XVI. PERMITTING OTHERWI SE EXEMPT EQUIPMENT

The title of Section III has been changed from Provisions for Permitting Otherwise Exempt Equipment to Provisions for Permitting Otherwise Exempt Source Operation. Section III also has minor l anguage corrections to add clarity

to its intent.

XVII. RECORDKEEPING

Following the October 2009 workshop, the ARB and EPA s uggested that the District elaborate on the recordkeeping criteria of Section IV, Recordkeeping . The District expanded Section IV, Recordkeeping in the September 2, 2010 proposed

revision. ARB and EPA believed that the proposed requirement s in the 9/2/10

revision would become burdensome for ma ny Sources and suggested that the District broaden the requirements. Ba sed upon ARB and EPA comments, the proposed revision to Section IV, Recordkeeping has been expanded to include the following language and requirements:

A. Recordkeeping shall be required to verify or maintain any exemption if such exemption is based on a maximum emission limitation or is a provision of a specific section of this rule. Such re cords may include but are not limited to: number of days of source operation, type(s) of affe cted pollutant emitted in pounds per day, Material Safety Da ta Sheets, product data sheets, specification sheets, purchase records, VOC content data for coatings,

emission factors used for calculations , and any other pertinent information.

B. Source operation t hat qualifies as Low Emitting Unit in accordance with Section II.M.1 of this rule may sa tisfy the recordkeeping provision by maintaining records for the source operation sufficient to demonstrate uncontrolled emissions of any affect ed pollutant do not exceed 2 pounds for 24-hour period of maximum operat ion for the calendar year.

C. Source operation t hat qualifies as Low Emitting Unit in accordance with Section II.M.2 of this rule may sa tisfy the recordkeeping provision by:

1. Maintaining records for the source operation sufficient to demonstrate

uncontrolled emissions of NOx and VOC do not exceed 10 pounds in any 24-hour period of maximum operat ion for the calendar year; and

EKAPCD Final 1/13/2011 7202 Staff Report

EKAPCD Final 1/13/2011 8 2. Maintaining records to demonstrat e emissions of NOx and VOC do not exceed 180 pounds in the calendar year: and

3. Maintaining records for the source operation sufficient to demonstrate uncontrolled emissions of any affect ed pollutant other than NOx and VOC do not exceed 2 pounds for 24-hour per iod of maximum operation for the calendar year.

D. Such records shall be maintained on-site for at least 3 years (Title V sources must retain records for 5 years), and shall be submitted to District Staff upon District’s request.

XVIII. ECONOMIC IMPACT

Amended Rule 202, Permit Exemptions pos es no significant increased cost to industry.

XIX. SOCIOECONOMIC IMPACTS

CH & SC Section 40728.5 exempts dist ricts with a population of less than 500,000 persons from the requi rement to assess the socioeconomic impacts of proposed rules. Eastern Kern County popul ation is below 500,000 persons.

XX. ENVIRONMENTAL IMPACTS

No significant environmental impacts are expected as a result of this proposed amendment. Pursuant to the Section 15061, Subsections (2) & (3) of the California Environmental Quality Act (C EQA) Guidelines, staff has prepared and filed a Notice of Exemption for this project.

Remainder of Page Intentionally Left Blank

## APPENDIX A

AMENDED RULE 202 PERMIT EXEMPTIONS202 Staff Report – Amended Rule Appendix A

RULE 202 Permit Exemptions - Adopted 4/18/72, Amended 3/19/74, 12/17/74, 6/30/80, 12/15/80, 4/25/83, 11/18/85, 8/22/89, 4/30/90, 8/19/91, 5/2/96, 1/8/98, 3/13/03, 1/8/04, 1/13/2011

I. California Health and Safety Code (CH & SC) Exemptions

An Authority to Construct (ATC) or a Permit to Operate (PTO) shall not be required for the following unless an ATC or PTO is required pursuant to Section III.A of this Rule:

A. Any structure designed for and used exclusiv ely as a dwelling for not more than four families and any incinerator used exclusivel y in connection with such structure (CH & SC, Sections 42310(a) (1) and (3));

B. Any Vehicle as defined in Rule 102, but not including any source operation mounted on such vehicle that would otherwise require a permit under provisions of the District Rules and Regulations (CH & SC, Section 42310 (a)(1);

C. Repairs or maintenance not involving stru ctural changes to any source operation with a Permit to Operate (CH & SC, Section 42310(a) (5)); and

D. Portable engines and/or equipment associated with such engines qualifying for and in compliance with CARB's statewide regi stration system (CH & SC, Section 41753).

II. Additional Exemptions

An ATC or a PTO shall not be required for the following unless a written permit is specifically requested by the owner/operator or an ATC or PTO is required pursuant to

Section III of this Rule:

A. Combustion Equipment : 1. Steam generators, steam superheaters, water boilers, water heaters, steam cleaners, and closed heat transfer syst ems with a total burner(s) maximum input heat rating of less than 5,000,000 Btu per hour (gross) and equipped to be fired exclusively with natural gas, liquefied petroleum gas, or any combination thereof, provided the fuel contains no more than 5 percent by weight hydrocarbons heavier than butane (as determined by test method ASTM E-260- 73) and no more than 0.30 grains of tota l sulfur per 100 standard cubic feet of gas (as determined by test method ASTM D-1072-80);

2. Piston-type internal combustion en gines with a manufacturer's maximum continuous rating of 50 brake hor sepower (bhp) or less; and

3. Gas turbine engines with a maximu m heat input rating of 3,000,000 Btu per

hour or less at Standard Conditions as defined in Rule 102, Definitions ; and

4. Natural gas or liquefied petroleum ga s fired equipment used exclusively for space heating, except boilers.

EKAPCD A- 1 Final 1/13/2011202 Staff Report – Amended Rule Appendix A

B. Locomotives, Airplanes, and Watercraft: Used to transport passengers or freight. This exemption is not intended to apply to equipment used for dredging of waterways or to equipment used in pile driv ing adjacent to or in waterways.

C. Cooling Towers : Except as required by Rule 429.1, water cooling towers with a circulation rate of less than 1,000 gallons/m inute and not used for cooling liquids containing volatile organic compounds such as process water, water from barometric jets, or water from barometric condensers.

D. Printing and Reproduction Equipment : Printing, coating, or laminating facilities using less than 2 gallons per day of graphic arts materials. Graphic arts materials are any ink, coating, adhesive, fountain solution, th inner, retarder, or cleaning solution.

E. Food Processing Equipment : 1. Mixers and blenders used in bakeries producing edible foodstuffs intended for human consumption;

2. Ovens used in bakeries produci ng less than 1,000 pounds of product per operating day, if exempted by Subsection II.A.1.; or if el ectrically heated;

3. Smokehouse used for preparing food with a maximum horizont al inside crosssectional area not exceeding 20 square feet ; and

4. Non-chain driven commercial use BBQ grill 20 square feet or less.

F. Plastic/Rubber Processing Equipment : Source operations used exclusively for extruding or compression molding of rubber pr oducts or plastics, if no plasticizer or blowing agent is present.

G. Liquid Storage Vessels : Containers, reservoirs, or tanks used exclusively for:

1. Storage of JP-8, NATO F-34, NATO F- 35, and JP-8+100 engine fuels as defined in military speci fication number MIL-DTL-83133;

2. Storage of unheated organic material w ith a capacity of 250 gallons or less;

3. Storage of unheated organic material not used as a fuel with an initial boiling point of 150 ̊ C (302 ̊ F) or greater as measured by test method ASTM D-86;

4. Storage of organic liquids as meas ured by test method API 2547 or ASTM D1298-80 that include:

a. Storage of petroleum distillates used as engine fuel with 0.8251 specific gravity or higher (40 ̊ API or lower) and with a capacity of 19,800 gallon (471 bbls) or less;

b. Storage of unrefined oil with spec ific gravity of 0.8762 or higher (30 ̊ API or lower) and with a capacity of 100 bbl or less;

EKAPCD A- 2 Final 1/13/2011202 Staff Report – Amended Rule Appendix A

c. Storage of fuel oils or non-air-blow n asphalt with 0.9042 specific gravity or higher (25 ̊ API or lower).

5. Storage of refined lubr icating oils and greases;

6. Storage of liquefied gases in unvented (except for emergency relief) pressure vessels; and

7. Transporting of liquids on streets or highways.

H. Loading Racks and Equipment : Loading racks (as defined in Rule 102) used exclusively for transfer of:

1. Unheated organic materials not used as a fuel with an initial boiling point of 150 ̊

C (302 ̊ F) or greater as measured by test method ASTM D-86;

2. Petroleum distillates with 0.8251 specific gravity or higher (40 ̊ API or lower) as measured by test method API 2547 or ASTM D-1298-80;

3 Unrefined oil, asphalt, or residual oi l from tanks not requiring permits in accordance with this Rule;

4. Unrefined oil with 0.8762 specific gravity or higher (30 ̊ API or lower) as measured by test method API 2547 or ASTM D-1298-80;

5. Unrefined oil, asphalt, or residual oi l from a delivery ve hicle if loading equipment is attached to such vehicle; and

6. Refined lubricating oil.

I. Surface Coating and Solvent Cleaning Operations : 1. Equipment used for application of arch itectural surface coati ngs. Architectural surface coating is defined as any coating applied to stationary structures and their appurtenances, to mobile homes, to pavements, or to curbs; and

2. Unheated, nonconveyorized cleaning equi pment (not including emission control enclosures):

a. with an open surface area of 10.0 ft2 or less, and internal volume of 92.5 gallons or less;

b. using only organic solvents with an initial boiling point of 120 ̊ C (248 ̊ F) or greater as determined by ASTM 1078-78; and

c. located at a stationary source losing less than 25 gallons of solvent per year to the atmosphere from all such equipm ent at the stationary source. Solvent lost shall not include solvent recycled or disposed of properly. Any person claiming exemption pursuant to this subsection shall maintain adequate monthly records to document his exempt status.

EKAPCD A- 3 Final 1/13/2011202 Staff Report – Amended Rule Appendix A

J. Abrasive Blasting Equipment : 1. Blast cleaning cabinets in which a susp ension of abrasive in water is used;

2. Any manually-operated abrasive blast cabin et, vented to a dust-filter, where the

total internal volume of the blast section is 50 cubic feet or less;

3. Enclosed equipment used exclusively for shot blast removal of flashing from rubber and plastics at sub-zero temperatures;

4. Shot peening operations, provided no surface material is removed; and

5. Portable sand/water blaster equipmen t and associated piston type internal combustion engine, provided water in the mixture is maintained at 66% or more by volume during operation of such equipment. Piston type internal combustion engines must be exempt pur suant to Subsection II.A.2.

K. Agricultural Sources : An Agricultural Facility or C onfined Animal Facility (CAF) (as defined in Rule 102, Definitions) that meets all of the following requirements:

1. Actual emissions are less than one-hal f the Major Source thresholds as defined in District Rule 201.1, Permits to Operate for Sources Subject to Title V of the

Federal Clean Air Act Amendmen ts of 1990, Section II.U; and

2. Houses quantities of each class of animal less than:

1,000 milk-producing dairy cows; 2,500 horses; 3,000 swine; 3,500 beef cattle; 7,500 calves, heifers, or other cattle; 15,000 sheep, lambs, or goats; 30,000 rabbits or other animals not in this list; 100,000 turkeys; 650,000 chickens other than laying hens; 650,000 laying hens; 650,000 ducks.

L. Miscellaneous : 1. Brazing, soldering, or welding equipm ent. This exemption applies to conventional brazing, soldering, or we lding operations only; any internal combustion engine or other equipment a ssociated with thes e source operations that would otherwise requir e permits is not exempt;

2. Equipment used exclusively to compress or hold dry natural gas; any engine or other equipment associated with such source operation otherwise requiring permits is not exempt;

3. Unvented (except for emergency pressure relief) pressure vessels associated with a source operation exempt from permit; and

EKAPCD A- 4 Final 1/13/2011202 Staff Report – Amended Rule Appendix A

4. Comfort air conditioning or comfort ventilating system s not designed to remove air contaminants generated by or released from a source operation.

M. Low Emitting Unit: A source operation that meets the emission limits specified in

either Subsection 1 or 2 of this se ction and complies with Section IV, Recordkeeping

of this rule.

1. A source operation with a potential to emit any uncontrolled affected pollutant at a rate of less than or equal to 2 pounds in any 24-hour period.

2. A source operation with a potential to emit uncontrolled Oxides of Nitrogen (NOx) or Volatile Organic Compounds (VOCs) at a rate of less than or equal to10 pounds in any 24-hour period and less th an or equal to 180 pounds in any calendar year.

N. Temporary Source Operation : Any source operation, as defined in Rule 102,

Definitions that has not occurr ed in the previous 2 calendar years, will operate for less than 12 consecutive months, and expected to emit less than 500 pounds of affected pollutants during the operation period.

Any source seeking Temporary Source Operation exemption must comply with provisions 1 and 2 of this section.

1. An application and filing fee in accord ance with District Rule 301 shall be submitted to the Control Officer to qualify for the exemption listed in this section. Additionally, application shall be subject to application processing and priority processing fees as stated in Rule 303 . Such application shall include: identification of source operation, docume ntation of expected emissions, and proposed form and location of records to be used to verify qualification for exemption. Such requests shall be acted upon by the District within 30 days. Each request for reapplication shall be accompanied by filing fee in accordance with District Rule 301; and

2. Sufficient records verifying compliance with Temporary Source Operation limits

shall be collected and maintained in accordance with Section IV.A (Recordkeeping) of this rule.

III. Provisions for Permitting Oth erw ise Exempt Source Operation

Notwithstanding provisions of Sections I and II of this Rule, an Authority to Construct and a Permit to Operate may be required for the following source operations:

A. Those subject to EPA 40 CFR, Part 60, New Source Performance Standards (NSPS), EPA 40 CFR, Parts 61 and 63, National Emission Standards for Hazardous Air Pollutants (NESHAPS and MACT); or a ny source specific prohibitory Rule;

B. Those for which the Control Officer makes a determination a permit shall be required because such source operation may not operate in compliance with all District rules and regulations, or has the potential to em it hazardous air pollutants in such quantity as to pose a significant ri sk to public health; and

EKAPCD A- 5 Final 1/13/2011202 Staff Report – Amended Rule Appendix A

EKAPCD A- 6 Final 1/13/2011 C. Those proposed as part of soil or groundwater remediation projects.

IV. Recordkeeping

A. Recordkeeping shall be required to verify or maintain any exemption if such exemption is based on a maximum emission lim itation or is a provision of a specific

section of this rule. Such records may include but are not limited to: number of days of source operation, type(s) of affected po llutant emitted in pounds per day, Material Safety Data Sheets, product data sheets, specification sheets, purchase records, VOC content data for coatings, emission fact ors used for calculations, and any other pertinent information.

B. Source operation that qualifies as Low Emitting Unit in accordance with Section II.M.1 of this rule may satisfy the recor dkeeping provision by maintaining records for the source operation sufficient to demonstr ate uncontrolled emissions of any affected pollutant do not exceed 2 pounds for 24-hour period of maximum operation for the calendar year.

C. Source operation that qualifies as Low Emitting Unit in accordance with Section II.M.2 of this rule may satisfy the recordkeeping provision by:

1. Maintaining records for the source operation sufficient to demonstrate uncontrolled emissions of NOx and VOC do not exceed 10 pounds in any 24-hour period of maximum operation for the calendar year; and

2. Maintaining records to demonstrate em issions of NOx and VOC do not exceed 180 pounds in the calendar year: and

3. Maintaining records for the source operation sufficient to demonstrate uncontrolled emissions of any affected po llutant other than NOx and VOC do not exceed 2 pounds for 24-hour period of maxi mum operation for the calendar year.

D. Such records shall be maintained on-site for at least 3 years (Title V sources must retain records for 5 years), and shall be submitted to District Staff upon District’s

request.

Remainder of Page Intentionally Left Blank

## APPENDIX B

AMENDED RULE 202 PERMIT EXEMPTIONS

STRIKEOUT UNDERLINE202 Staff Report – Strikeout Unde rline Appendix B

EKAPCD B- 2 Final 1/13/2011 RULE 202 Permit Exemptions - Adopted 4/18/72, Amended 3/19/74, 12/17/74, 6/30/80, 12/15/80, 4/25/83, 11/18/85, 8/22/89, 4/30/90, 8/19/91, 5/2/96, 1/8/98, 3/13/03,

1/8/04 , 1/13/2011

I. California Health and Safety Code (CH & SC) Exemptions :

Neither an An Authority to Construct (ATC) n or a Permit to Operate (PTO) shall not be required for the following unless an ATC or PTO is require d pursuant to Section III.A of

this Rule :

A. Any structure designed for and used exclusiv ely as a dwelling for not more than four families and any incinerator used exclusivel y in connection with such structure (CH & SC, Sections 42310( b a ) (1) and ( c 3 ));

B. Motor vehicles Any Vehicle as defined in Rule 102 by the Vehicle Code of the State of California (CVC, Section 415 (a)) , but not including any source operation mounted on such vehicle that would otherwise require a permit under provisions of the District Rules and Regulations (CH & SC, Section 42310 (a)(1) ;

C. Repairs or maintenance not involving stru ctural changes to any source operation with a Permit to Operate (CH & SC, Section 42310( f a ) (5) ); and

D. Portable engines and/or equipment associ ated with such engines qualifying for and complying in compliance with CARB's statewide registration system (CH & SC, Section 41753).

II. Additional Exemptions

Neither an An Authority to Construct ATC n or a Permit to Operate PTO shall not be required for the following unless a written permit is specifically requested by the owner/operator : or an ATC or PTO is required pursuant to Section III of this Rule:

A. Combustion Equipment :

1. Steam generators, steam superheaters, water boilers, water heaters, steam cleaners, and closed heat transfer syst ems with a total burner(s) maximum input heat rating of less than 5,000,000 Btu per hour (gross) and equipped to be fired exclusively with natural gas, liquefied petroleum gas, or any combination thereof, provided the fuel contains no more than 5 percent by weight hydrocarbons heavier than butane (as determined by test method ASTM E-260- 73) and no more than 0.30 grains of tota l sulfur per 100 standard cubic feet of gas (as determined by test method ASTM D-1072-80);

2. Piston-type internal combustion en gines with a manufacturer's maximum continuous rating of 50 brake hor sepower (bhp) or less; and

3. Gas turbine engines with a maximu m heat input rating of 3,000,000 Btu per

hour or less at ISO Standard Day Conditions as defined in Rule 102,

Definitions

. ; and202 Staff Report – Strikeout Unde rline Appendix B

EKAPCD B- 3 Final 1/13/2011 4. Natural gas or liquefied liquified petroleum gas fired equipment used exclusively for space heating, except boilers.

B. Vehicles : Locomotives, airplanes Airplanes , and watercraft Watercraft: used Used to transport passengers or freight. This exem ption is not intended to apply to equipment used for dredging of waterways or to equipmen t used in pile driving adjacent to or in

waterways.

C. Cooling Towers : Except as required by Rule 429.1, water cooling towers with a circulation rate of less than 1,000 gallons/m inute and not used for cooling liquids containing volatile organic compounds such as process water, water from barometric jets, or water from barometric condensers.

D. Printing and Reproduction Equipment : Printing, coating, or laminating facilities using less than 2 gallons per day of graphic arts materials. Graphic arts materials are any ink, coating, adhesive, fountain solution, th inner, retarder, or cleaning solution.

E. Food Processing Equipment :

1. Mixers and blenders used in bakeries producing edible foodstuffs intended for human consumption;

2. Ovens used in Bakery bakeries oven with total production producing less than 1,000 pounds of product per operating day, if exempted by Subsection II.A.1.; or if electrically heated;

3. Smokehouse s used for preparing food with a maximum horizontal inside crosssectional area not exceeding 20 square feet ; and

.

4. Non-chain driven commercial use BBQ grill 20 square feet or less.

F. Plastic/Rubber Processing Equipment : Source operations used exclusively for extruding or compression molding of rubber pr oducts or plastics, if no plasticizer or blowing agent is present.

G. Liquid Storage Vessels : Containers, reservoirs, or tanks used exclusively for:

1. Storage of JP-8, NATO F-34, NATO F-35, and JP-8+100 engine fuels as defined in military specification number MIL -DTL -83133 ;

2. Storage of unheated organic material w ith a capacity of 250 gallons or less;

1. Storage of oil with specific gravity of 0.8762 or higher (30 ̊ API or lower) as measured by test method API 2547 or ASTM D

- 1298

- 80 and with a capacity of 100 bbl or less;

2. Storage of unheated organic material w ith a capacity of 250 gallons or less;202 Staff Report – Strikeout Unde rline Appendix B

EKAPCD B- 4 Final 1/13/2011 3 . Storage of unheated organic material not used as a fuel with an initial boiling point of 150 ̊ C (302 ̊ F) or greater as measured by test method ASTM D-86;

4 . Storage of fuel oils or non

- air

- blown asphalt with 0.9042 specific gravity or higher (25 ̊ API or lower) organic liquids as measured by test method API 2547

or ASTM D-1298-80 that include:

a. Storage of petroleum distillates used as engine fuel with 0.8251 specific gravity or higher (40 ̊ API or lower) and with a capacity of 19,800 gallon (471 bbls) or less;

b. Storage of unrefined oil with spec ific gravity of 0.8762 or higher (30 ̊ API or lower) and with a capacity of 100 bbl or less;

c. Storage of fuel oils or non-air-blow n asphalt with 0.9042 specific gravity or higher (25 ̊ API or lower).

5. Storage of petroleum distillates used as motor fuel with 0.8251 specific gravi ty or higher (40 ̊ API or lower) as measured by test method API 2547 or ASTM D

1298

- 80 and with a capacity of 19,80 0 gallon (471 bbls) or less;

5 . Storage of refined lubr icating oils and greases;

6 . Storage of liquefied gases in unvented (except for emergency relief) pressure vessels; and

7 . Transporting of liquids on streets or highways.

H. Loading Racks and Equipment : Loading racks (as defined in Rule 102) used exclusively for transfer of:

1. Unheated organic materials not used as a fuel with an initial boiling point of 150 ̊

C (302 ̊ F) or greater as measured by test method ASTM D-86;

2. Fuel oil Petroleum distillates with 0.8251 specific gravity or higher (40 ̊ API or lower) as measured by test me thod API 2547 or ASTM D-1298-80;

3 Crude Unrefined oil, asphalt, or residual oil fr om tanks not requiring permits in accordance with this Rule;

4. Crude Unrefined oil with 0.8762 specific gravity or higher (30 ̊ API or lower) as measured by test method API 2547 or ASTM D-1298-80;

5. Crude Unrefined oil, asphalt, or residual oil fr om a delivery vehicle if loading equipment is attached to such vehicle; and

6. Refined lubricating oil.202 Staff Report – Strikeout Unde rline Appendix B

EKAPCD B- 5 Final 1/13/2011 I. Surface Coating and Solvent Cleaning Operations :

1. Equipment used for application of arch itectural surface coati ngs. Architectural surface coating is defined as any coating applied to stationary structures and their appurtenances, to mobile hom es, to pavements, or to curbs ; and

.

2. Unheated, nonconveyorized cleaning equi pment (not including emission control enclosures):

a. with an open surface area of 10.0 ft2 or less, and internal volume of 92.5 gallons or less;

b. using only organic solvents with an initial boiling point of 120 ̊ C (248 ̊ F) or greater as determined by ASTM 1078-78; and

c. located at a stationary source losing less than 25 gallons of solvent per year to the atmosphere from all such equipm ent at the stationary source. Solvent lost shall not include solvent recycled or disposed of properly. Any person claiming exemption pursuant to this subsection shall maintain adequate monthly records to document his exempt status.

J. Abrasive Blasting Equipment :

1. Blast cleaning cabinets in which a susp ension of abrasive in water is used;

2. Any manually-operated abrasive blast cabin et, vented to a dust-filter, where the

total internal volume of the blast section is 50 cubic feet or less;

3. Enclosed equipment used exclusively for shot blast removal of flashing from rubber and plastics at sub-zero temperatures;

4. Shot peening operations, provided no surface material is removed; and

5. Portable sand/water blaster equipmen t and associated piston type internal combustion engine, provided water in the mixture is maintained at 66% or more by volume during operation of such equipment. Piston type internal combustion engines must be exempt pur suant to Subsection II.A.2.

K. Agricultural Sources: An Agricultural Faci lity or Confined Animal Facility (CAF) (as defined in Rule 102, Definitions) that meets all of the following requirements:

1. Actual emissions are less than one-hal f the Major Source thresholds as defined in District Rule 201.1, Permits to Operate for Sources Subject to Title V of the

Federal Clean Air Act Amendmen ts of 1990, Section II.U; and

2. Houses quantities of each class of animal less than:

1,000 milk-producing dairy cows; 2,500 horses; 3,000 swine;202 Staff Report – Strikeout Unde rline Appendix B

EKAPCD B- 6 Final 1/13/2011 3,500 beef cattle; 7,500 calves, heifers, or other cattle; 15,000 sheep, lambs, or goats; 30,000 rabbits or other animals not in this list; 100,000 turkeys; 650,000 chickens other than laying hens; 650,000 laying hens; 650,000 ducks.

K L . Miscellaneous :

1. Brazing, soldering, or welding equipm ent. This exemption applies to conventional brazing, soldering, or we lding operations only; any internal combustion engine or other equipment associated with these source operations that would otherwise requ ire permits is not exempt ;

.

2. Equipment used exclusively to compress or hold dry natural gas; any engine or other equipment associated with such source operation s otherwise requiring permits is not exempt ;

.

3. Unvented (except for emergency pressure relief) pressure vessels associated with a source operation exempt from permit ; and

.

4. Comfort air conditioning or comfort ventilating system s not designed to remove air contaminants generated by or released from a source operation.

To qu alify for the following exemptions , an application and $104 filing fee shall be submitted to the Control Officer. Such application shall include: identification of source operation, docume ntation of expected emissions and proposed form and location of records to be used to verify qualification for exemption. Such requests shall be acted upon by the District within 30 days. To retain such exemption, the owne r of a source operation shall reapply biannually. Each request for reapplication shall be accom panied by a $104 filing fee.

5. Source operation operated at one stationa ry source for not more than 45 days, which is not a replacement for a specific activity which lasts or is intended to last for more than 45 days at one stationary source, and which emits less than two tons per year of any air contaminant.

6. Any source operation if the uncontrolle d emission of any criteria air contaminant, except Oxides of Nitrogen and Volatile Organic Compounds, cannot exceed 2 pounds in any 24

- hour period; or

7. Sources of Oxides of Nitrogen (NO x ) or Volatile Organic Compounds (VOC)

which:

a. cannot emit more than 10 pounds of NO x or VOC uncontrolled in any 24 hour period,202 Staff Report – Strikeout Unde rline Appendix B

EKAPCD B- 7 Final 1/13/2011 b. cannot emit more than 180 pounds of NO x or VOC uncontrolled in any quarter, and

c. will not interfere with pr ovisions of the newest adopted ozone Air Quality

Attainment Plan.

M. Low Emitting Unit: A source operation that meets the emission limits specified in

either Subsection 1 or 2 of this se ction and complies with Section IV, Recordkeeping

of this rule.

1. A source operation with a potential to emit any uncontrolled affected pollutant at a rate of less than or equal to 2 pounds in any 24-hour period.

2. A source operation with a potential to emit uncontrolled Oxides of Nitrogen (NOx) or Volatile Organic Compounds (VOCs) at a rate of less than or equal to10 pounds in any 24-hour period and less th an or equal to 180 pounds in any calendar year.

N. Temporary Source Operation: Any source operation, as defined in Rule 102,

Definitions that has not occurr ed in the previous 2 calendar years, will operate for less than 12 consecutive months, and expected to emit less than 500 pounds of affected pollutants during the operation period.

Any source seeking Temporary Source Operation exemption must comply with provisions 1 and 2 of this section.

1. An application and filing fee in accord ance with District Rule 301 shall be submitted to the Control Officer to qualify for the exemption listed in this section. Additionally, application shall be subject to application processing and priority processing fees as stated in Rule 303 . Such application shall include: identification of source operation, docume ntation of expected emissions, and proposed form and location of records to be used to verify qualification for exemption. Such requests shall be acted upon by the District within 30 days. Each request for reapplication shall be accompanied by filing fee in accordance with District Rule 301; and

2. Sufficient records verifying compliance with Temporary Source Operation limits

shall be collected and maintained in accordance with Section IV.A (Recordkeeping) of this rule.

III. Provisions for Permitting Otherwise Exempt Equipment Source Operation

Notwithstanding provisions of Section s I and II of this Rule , an Authority to Construct and a Permit to Operate shall may be required for the following source operations:

A. Those subject to EPA 40 CFR, Part 60, New Source Performance Standards (NSPS), EPA 40 CFR, Parts 61 and 63, National Emission Standards for Hazardous Air Pollutants (NESHAPS and MACT); or a ny source specific prohibitory Rule;

B. Those for which the Control Officer makes a determination a permit shall be required because such source operation may not operate in compliance with all distri ct District202 Staff Report – Strikeout Unde rline Appendix B

EKAPCD B- 8 Final 1/13/2011 rules and regulations, or ha s the potential to emit hazar dous air pollutants in such quantity as to pose a significan t risk to public health; and

C. Those proposed as part of soil or groundwater remediation projects.

IV. Recordkeeping

A. Recordkeeping shall be required to verify or maintain any exemption if such exemption is based on a maximum emission limitation

. or is a provision of a specific

section of this rule. Such records may include but are not limited to: number of days of source operation, type(s) of affected po llutant emitted in pounds per day, Material Safety Data Sheets, product data sheets, specification sheets, purchase records, VOC content data for coatings, emission fact ors used for calculations, and any other pertinent information.

B. Source operation that qualifies as Low Emitting Unit in accordance with Section II.M.1 of this rule may satisfy the recor dkeeping provision by maintaining records for the source operation sufficient to demonstr ate uncontrolled emissions of any affected pollutant do not exceed 2 pounds for 24-hour period of maximum operation for the calendar year.

C. Source operation that qualifies as Low Emitting Unit in accordance with Section II.M.2 of this rule may satisfy the recordkeeping provision by:

1. Maintaining records for the source operation sufficient to demonstrate uncontrolled emissions of NOx and VOC do not exceed 10 pounds in any 24-hour period of maximum operation for the calendar year; and

2. Maintaining records to demonstrate em issions of NOx and VOC do not exceed 180 pounds in the calendar year: and

3. Maintaining records for the source operation sufficient to demonstrate uncontrolled emissions of any affected po llutant other than NOx and VOC do not exceed 2 pounds for 24-hour period of ma ximum operation for the calendar year.

D. Such records shall be maintained on-site for at least 3 years (Title V sources must retain records for 5 years), and shall be submitted to District Staff upon District’s

request.

Remainder of Page Intentionally Left Blank

## APPENDIX C:

AMENDED RULE 202 PERMIT EXEMPTIONS

RESPONSE TO COMMENTS202 Staff Report - Response to Comment s Appendix C

EKAPCD C- 1 Draft 1/13/2011 I. ARB & EPA COMMENTS

The District submitted a copy of the propos ed Rule 202 revision dated September 2, 2010 to ARB and EPA for a 30-day review. The 9/2/2010 proposed revision of Rule 202 incorporated changes made to the revision based on comments the District received from ARB, EPA, and industry following the first workshop held in October
2009. ARB and EPA had a series of additi onal comments regarding the 9/2/2010 proposed revision of Rule 202.

This section represents the changes made to the proposed revision of Rule 202 in response to ARB and EPA comments followi ng the October 2009 workshop and the
9/2/2010 revision.

California Health and Safety Code (CH & SC) Exemptions

In the 10/16/2009 draft of 202, Section II.B was changed from CH & SC 42310 (a) to CVC, Section 415 (a) . The EPA commented that “this is a hanging reference. The
definition of motor vehicle should be inclu ded in the rule, unless CARB submits the Vehicle code section as part of the SIP”. In response to this comment, the District
included a definition for Vehicle in Rule 102, Definitions and updated Section II.B of Rule 202 to the following language:

Any Vehicle as defined in Rule 102, but not including any sour ce operation mounted on such vehicle that would otherwise require a permit under provisions of the District Rules and Regulations (CH & SC, Section 42310 (a)(1).

Additional Exemptions

It was recommended that the term “EPA” be deleted from Section II.A.3, Combustion Equipment since Rule 102 only defines the te rm “Standard Conditions.” Section

II.A.3 has been revised to the following language:

Gas turbine engines with a maximum heat i nput rating of 3,000,000 Btu per hour or less at Standard Conditions as defined in Rule 102, Definitions

.

Because a portion of the District was desi gnated federal non-attainment for ozone on January 1, 2004, the District must devel op, adopt, implement, and submit to the SIP an agricultural rule pursuant to H &S Code section 40724.6. At the request of ARB, Section II.K, Agricultural Sources has been added to Rule 202. Proposed language for Section II.K is as follows:

An Agricultural Facility or Confined Animal F acility (CAF) (as defined in Rule 102, Definitions) that meets all of the following requirements:

1. Actual emissions are less than one-half t he Major Source thresholds as defined in District Rule 201.1, Permits to Operat e for Sources Subject to Title V of the
Federal Clean Air Act Amendment s of 1990, Section II.U; and202 Staff Report - Response to Comment s Appendix C

EKAPCD C- 2 Draft 1/13/2011 2. Houses quantities of each class of animal less than:

1,000 milk-producing dairy cows; 2,500 horses; 3,000 swine; 3,500 beef cattle; 7,500 calves, heifers, or other cattle; 15,000 sheep, lambs, or goats; 30,000 rabbits or other animals not in this list; 100,000 turkeys; 650,000 chickens other than laying hens; 650,000 laying hens; 650,000 ducks.

In the October 16, 2009 proposed revi sion of Rule 202, Section II.M, Low Emitting

Unit was located in Section II.L and titled Low Emitting Unit Not Emitting Toxic Air Contaminants (TAC) . As requested by the EPA, “ Not Emitting Toxic Air Contaminants (TAC) ” was removed from the title of this exemption and “(PM10, SOx, NOx, VOC and CO)” was omitted from the description.

The District changed the requirement s and language of Section II.M, Low Emitting

Unit based on comments received from the ARB, EPA, and industry following the October 2009 workshop. The propos ed language and requirements for Low Emitting

Unit at the October 2009 was as follows:

1. De Minimis Emitting Unit

An uncontrolled emissions unit that em its less than 1 pound of any of the following criteria air contaminants (PM 10, SOx, NOx, VOC and CO) in any 24- hour period, and emits for less t han 30 days in any calendar year.

2. Certified Low Emissions Units

An uncontrolled emissions unit that emits le ss than or equal to 2 pounds of any of the following criteria air contaminants (PM10, SOx, NOx, VOC and CO) in any 24-hour period. If emissions are great er than 2 pounds in any 24-hour period, they must not exceed 75-pounds in calendar year.

To qualify for the exemptions listed in this section one of the following requirements must be met:

a. An application and filing fee in accordance with District Rule 301 shall be
submitted to the Air Pollution Control Of ficer. Additiona lly, application shall be subject to application processing and pr iority processing fees as stated in Rule 303. Such application shall include: identification of source operation, documentation of expected emissions and proposed form and location of records to be used to verify qualificati on for exemption. Such requests shall be acted upon by the District within 30 days. To retain such exemption, the owner of a source operation shall r eapply biennially. Each request for reapplication shall be accompanied by filing fee in accordance with District

Rule 301.202 Staff Report - Response to Comment s Appendix C

EKAPCD C- 3 Draft 1/13/2011 b. Submittal of an engineering analysis of the Low Emissions Unit by a
Certified Air Emissions Professional (CAEP), as defined in Rule 102 Definitions section G, demonstrating that the emissions of criteria pollutants are below the exemption thresholds of this section. Engineering analysis and filing fee in accordance with Distric t Rule 301 shall be submitted to the
Air Pollution Control Officer.

Revised language and requirements for the proposed Low Emitting Unit exemption developed in response to additional ARB and EPA comments are as follows:

A source operation that meets the emission limits specified in either Subsection 1 or 2 of this section and complies with Sect ion IV, Recordkeeping of this rule.

1. A source operation with a potential to emit any uncontrolled affected pollutant at a rate of less than or equal to 2 pounds in any 24-hour period.

2. A source operation with a potential to emit uncontrolled Oxides of Nitrogen (NOx) or Volatile Organic Compounds (VOCs) at a rate of less than or equal to10 pounds in any 24-hour period and less than or equal to 180 pounds in any calendar year.

It was recommended that Section II.N, Temporary Source Operation include a recordkeeping provision to ensure a tem porary source operati on does not exceed

the stated limit. It was also recommended t hat “de minimis TAC emission limits” as defined by OEHHA be specified.

In response to this comment, the term “ de minimis TAC emission limits” was deleted from Section II.N. The propos ed language for Section II.N, Temporary Source Operation is as follows:

Any source operation, as defined in Rule 102, Definitions that has not occurred in the previous 2 calendar years, will operat e for less than 12 consecutive months, and expected to emit less than 500 pounds of affected pollutants during the operation period.

Any source seeking T emporary Source Operation exemption must comply with provisions 1 and 2 of this section.

1. An application and filing fee in accordance with District Rule 301 shall be submitted to the Control Officer to qualify fo r the exemption listed in this section. Additionally, application shall be subject to application processing and priority processing fees as stated in Rule 303. Such application shall include:

identification of source operation, documentation of expected emissions, and proposed form and location of records to be used to verify qualification for exemption. Such requests shall be ac ted upon by the District within 30 days. Each request for reapplication shall be a ccompanied by filing fee in accordance with District Rule 301; and202 Staff Report - Response to Comment s Appendix C

EKAPCD C- 4 Draft 1/13/2011 2. Sufficient records verifying compliance with Tem porary Source Operation limits

shall be collected and maintained in accordance with Section IV.A (Recordkeeping) of this rule.

Recordkeeping

It was recommended that the District elaborat e on the recordkeeping criteria of Section IV, Recordkeeping . Language for Section IV has been expanded as follows:

A. Recordkeeping shall be required to verify or maintain any exemption if such exemption is based on a maximum emission limitation or is a provision of a specific section of this rule. Such re cords may include but are not limited to: number of days of source operation, type(s) of affe cted pollutant emitted in pounds per day, Material Safety Data Sheet s, product data sheets, specification sheets, purchase records, VOC content data for coatings, emission factors used for calculations, and any other pertinent information.

B. Source operation t hat qualifies as Low Emitting Unit in accordance with Section II.M.1 of this rule may satisfy the reco rdkeeping provision by maintaining records for the source operation sufficient to demonstrate uncontrolled emissions of any affected pollutant do not exceed 2 pounds for 24-hour period of maximum operation for the calendar year.

C. Source operation t hat qualifies as Low Emitting Unit in accordance with Section II.M.2 of this rule may satisf y the recordkeeping provision by:

1. Maintaining records for the source operation sufficient to demonstrate
uncontrolled emissions of NOx and VOC do not exceed 10 pounds in any 24- hour period of maximum operati on for the calendar year; and

2. Maintaining records to demonstrate emissions of NOx and VOC do not exceed 180 pounds in the calendar year: and

3. Maintaining records for the source operation sufficient to demonstrate uncontrolled emissions of any affected pollutant other than NOx and VOC do not exceed 2 pounds for 24-hour peri od of maximum operation for the calendar year.

D. Such records shall be maintained on-site for at least 3 years (Title V sources must retain records for 5 years), and shall be submitted to District Staff upon District’s request.

II. INDUSTRY COMMENTS

The District evaluated all comments m ade by Industry regarding the proposed changes to Rule 202. Some of the comment s were very similar to those the ARB and EPA proposed. Industry comments and sugges ted changes that are similar in202 Staff Report - Response to Comment s Appendix C

EKAPCD C- 5 Draft 1/13/2011 nature to those addressed in the ARB & EPA Comments section of Appendix C will not be mentioned again in this section.

Suggested changes that would aid Industry with complianc e without modifying the intent of the Rule were incorporated in to the proposed revision of Rule 202.

The following Industry suggested changes were not incorporated into the proposed revision of Rule 202 because they are either infeasible, would alter the intent of the Rule, were inapplicable to the Rule, or the District believed there was no benefit in making the change: exempting uncontrolled em issions units that emits more than 2 pounds of affected pollutants in any 24-hour period; exempting Non-CERCLA soil or groundwater remediation projects; exempt ing equipment used for carving, cutting, drilling, surface grinding, planing, routing, sanding, sawing, shredding, or turning of wood, paper or plastic, or the pressing or storing of saw dust, wood chips or wood shavings; exempting rental equipment; exem pting ovens used for curing, softening or annealing of plastics or curing up to 30 pounds per day of powder coatings; and deleting Section III.C.

Additional Exemptions

At the Military’s request language for Section II.G.1, Liquid Storage Vessels has been revised to clarify that liquid storage vessels containing JP-8 (NATO F-34, NATO F-35, JP-8+100) are exempt. Section II. G, lists all containers, reservoirs, or tanks used exclusively for liquid storage that do not require an Authority to Construct or Permit to Operate unle ss a written permit is specifically requested by the owner/operator.

Revised language for Section II.G.1 is as follows: Storage of JP-8, NATO F-34, NATO F-35, and JP-8+100 engine fuels as defined in military s pecification number

MIL-DTL-83133

.

EKAPCD Meeting with Edwards AFB

District staff met with Edwards AFB environ mental representatives on July 28, 2010 to acquire feedback regarding the proposed revisi on to Rule 202. After the meeting, District staff changed the requi rements of Section II.M, Low emitting Unit from:

An uncontrolled emissions unit that emits le ss than 2 pounds of affected pollut ants in any 24-hour period.Records verifying compli ance shall be collected and maintained in accordance with Section IV (Recordkeepi ng) of this rule if emissions from Low Emitting Unit are greater than 50 0 pounds in any calendar year;

To: An emissions unit with a potential to emit uncontrolled affected pollutants (excluding non TAC GHGs as defined pursuant to Rule 102, Definitions) at a rate of less than or equal to 2 pounds per 24-hour per iod or is less than or equal to 150 pounds per calendar year. Sufficient records verifying compliance of Low Emitting202 Staff Report - Response to Comment s Appendix C

EKAPCD C- 6 Draft 1/13/2011 Unit limits shall be collected and mainta ined in accordance with Section IV.A (Recordkeeping) of this rule

.

ARB and EPA did not agree with the propos ed limits and believed that it would create burdensome recordkeeping for sources and be difficult for the District to regulate. In response, District is proposi ng a two part exemption that will (1) exempt any source that emits 2 pounds or less of an affected pollutant in any 24-hour period; (2) exempt any source that emits 10 pounds or less of NOx or VOCs in any 24-hour period and does not em it more than 180 pounds of NO x or VOCs in a year. The language for this ex emption is stated under the ARB and EPA comments

section.

Following the Edwards AFB meeti ng the title of Section II.N, Temporary Emissions

Unit was been changed to Temporary Source Operation and the language and exemption requirements were revised from:

Any emissions source that has not occurre d in the previous 2 calendar years and emits less than 500 pounds of affect ed pollutants in a calendar year.

Any source operation seeking Temporary Em issions Unit exemption must comply with provisions 1 and 2 of this section.

1. An application and filing fee in a ccordance wit h District Rule 301 shall be submitted to the Control Officer to qualify fo r the exemption listed in this section. Additionally, application shall be subject to application processing and priority processing fees as stated in Rule 303. Such application shall include:

identification of source operation, documentation of expected emissions and proposed form and location of records to be used to verify qualification for exemption. Such requests shall be ac ted upon by the District within 30 days. Each request for reapplication shall be a ccompanied by filing fee in accordance

with District Rule 301.

2. Records verifying compliance with Temporary Emissions Unitlimit s shall be

collected and maintained in accordance with Section IV (Recordkeeping) of this

rule ;

To: Any source operation, as defined in Rule 102, Definitions that has not occurred in the previous 2 calendar years, will operat e for less than 12 consecutive months, and expected to emit less than 500 pounds of affected pollutants during the operation period. Any source seeking T emporary Source Operation exemption must comply with provisions 1 and 2 of this section.

1. An application and filing fee in accordance with District Rule 301 shall be submitted to the Control Officer to qualify fo r the exemption listed in this section. Additionally, application shall be subject to application processing and priority processing fees as stated in Rule 303. Such application shall include:

identification of source operation, documentation of expected emissions, and proposed form and location of records to be used to verify qualification for202 Staff Report - Response to Comment s Appendix C

EKAPCD C- 7 Draft 1/13/2011 exemption. Such requests shall be ac ted upon by the District within 30 days. Each request for reapplication shall be a ccompanied by filing fee in accordance with District Rule 301; and

2. Sufficient records verifying compliance with Temporary Sour ce Operation limit s shall be collected and maintained in accordance with Section IV.A (Recordkeeping) of this rule.

Affected Pollutants

Following the October 2010 workshop Edward s AFB environmental representatives requested that the District cl arify the intent and interpretation of the “term” Affected

Pollutant as it pertains to Rule 202. Edwa rds AFB environmental representatives
believe that Edwards AFB “occasional ly operates processes that emit air

contaminants but not affected pollutants , as defined in District Rule 102, Definitions.

Edwards AFB gave an example of such a process. The District addressed Edwards’ example and explained the in tent and interpretation of Affected Pollutants in Section X, Affected Pollutants on page 4 of this Staff Report.

III. PUBLIC COMMENTS

There were no comments made by the general public.

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