SJVUAPCD 2201 - 1 9/21/06

RULE 2201 NEW AND MODIFIED STATIONARY SOURCE REVIEW RULE (Adopted 

September 19, 1991; Amended March 11, 1992; Amended October 29, 1992; 

Amended December 17, 1992; Amended October 21, 1993; Amended June 15, 

1995; Amended August 20, 1998; Amended June 21, 2001 but not effective until 

August 20, 2001; Amended April 25, 2002; Amended December 19, 2002; 

Amended April 20, 2005; Amended December 15, 2005; Amended September 

21, 2006) 

1.0 Purpose 

The purpose of this rule is to provide for the following: 

1.1 The review of new and modified Stationary Sources of air pollution and to 

provide mechanisms including emission trade-offs by which Authorities to 

Construct such sources may be granted, without interfering with the attainment or 

maintenance of Ambient Air Quality Standards; and 

1.2 No net increase in emissions above specified thresholds from new and modified 

Stationary Sources of all nonattainment pollutants and their precursors. 

2.0 Applicability 

 This rule shall apply to all new stationary sources and all modifications to existing 

stationary sources which are subject to the District permit requirements and after 

construction emit or may emit one or more affected pollutant. The requirements of this 

rule in effect on the date the application is determined to be complete by the Air Pollution 

Control Officer (APCO) shall apply to such application except as provided in Section 2.1. 

2.1 The requirements of this rule in effect on the date that the rule was most recently 

amended shall apply to all applications that have not been deemed complete before 

that date. 

3.0 Definitions 

3.1 Actual Emissions: emissions having occurred from a source, based on source test 

or monitoring data, actual fuel consumption, and process data. If source test or 

monitoring data is not available, other appropriate, APCO-approved, emission 

factors may be used. 

3.2 Actual Emissions Reduction (AER): the decrease of actual emissions, compared 

to the Baseline Period, from an emissions unit and selected for use as emission 

offsets or ERC banking. AER shall meet the following criteria: 

3.2.1 Shall be real, enforceable, quantifiable, surplus, and permanent. 

3.2.2 To be considered surplus, AER shall be in excess, at the time the 

application for an Emission Reduction Credit or an Authority to Construct 
SJVUAPCD 2201 - 2 9/21/06

authorizing such reductions is deemed complete, of any emissions 

reduction which: 

3.2.2.1 Is required or encumbered by any laws, rules, regulations, 

agreements, orders, or 

3.2.2.2 Is attributed to a control measure noticed for workshop, or 

proposed or contained in a State Implementation Plan, or 

3.2.2.3 Is proposed in the APCO's adopted air quality plan pursuant to 

the California Clean Air Act. 

3.2.3 Emissions reductions attributed to a proposed control measure, which are 

excluded pursuant to Section 3.2.2.2 and 3.2.2.3 may be reeligible as 

AER if the control measures identified in the District Air Quality Plan or 

State Implementation Plan (SIP), are determined not to be necessary for 

attainment or maintenance of Ambient Air Quality Standards and the 

APCO and United States Environmental Protection Agency (EPA) have 

approved amendments to the plan or SIP to reflect this determination. 

3.3 Administrative Change: a change to an existing permit that: 

3.3.1 Corrects typographical errors; or 

3.3.2 Identifies a change in the name, address, or phone number of any person 

identified in the permit, or provides a similar minor administrative change 

at the source; or 

3.3.3 Changes the components of emissions monitoring equipment or other 

components, which have no effect on the quantity of emissions from an 

emissions unit, or 

3.3.4 Allows for the change of ownership or operational control of a source 

where the APCO determines that no other change is necessary. 

3.4 Affected Pollutants: those pollutants for which an Ambient Air Quality Standard 

has been established by the EPA or by the California Air Resources Board, 

(ARB), and the precursors to such pollutants, and those pollutants regulated by 

the EPA under the Federal Clean Air Act or by the ARB under the Health and 

Safety Code including, but not limited to, VOC, NOx, SOx, PM10, CO, and those 

pollutants which the EPA, after due process, or the ARB or the APCO, after 

public hearing, determine may have a significant adverse effect on the 

environment, the public health, or the public welfare. 

3.5 Air Quality Improvement Deduction: a 10 percent discount factor applied to 

Actual Emission Reductions (AER) before the AER is eligible for banking. 
SJVUAPCD 2201 - 3 9/21/06

3.6 Ambient Air Quality Standards: include State and National Ambient Air Quality 

Standards. (In the inclusion of this rule in the State Implementation Plan, all 

references in this rule to Ambient Air Quality Standards shall be interpreted as 

National Ambient Air Quality Standards.) 

3.7 Baseline Emissions (BE): for a given pollutant, shall be equal to the sum of: 

3.7.1 The pre-project Potential to Emit for: 

3.7.1.1 Any emissions unit located at a non-Major Source, 

3.7.1.2 Any Highly-Utilized Emissions Unit, located at a Major Source, 

provided that if the unit has a Specific Limiting Condition (SLC), 

all units combined under the SLC have an average combined 

annual Actual Emissions during the two consecutive years 

immediately prior to filing of an application for an Authority to 

Construct equal to or greater than 80% of the units’ pre-project 

SLC limit, 

3.7.1.3 Any Fully-Offset Emissions Unit, located at a Major Source, 

provided that if the unit has a SLC, all units under the SLC also 

qualify as Fully Offset Emissions Units, or 

3.7.1.4 Any Clean Emissions Unit, located at a Major Source, provided 

that if the unit has a SLC, all units under the SLC also qualify as 

Clean Emissions Units. 

3.7.2 The Historic Actual Emissions (HAE) for emissions units not specified in 

Section 3.7.1. 

3.8 Baseline Period: a period of time equal to either 

3.8.1 the two consecutive years of operation immediately prior to the submission 

date of the Complete Application; or 

3.8.2 at least two consecutive years within the five years immediately prior to 

the submission date of the Complete Application if determined by the 

APCO as more representative of normal source operation; or 

3.8.3 a shorter period of at least one year if the emissions unit has not been in 

operation for two years and this represents the full operational history of 

the emissions unit, including any replacement units; or 

3.8.4 zero years if an emissions unit has been in operation for less than one year 

(only for use when calculating AER). 
SJVUAPCD 2201 - 4 9/21/06

3.9 Best Available Control Technology (BACT): is the most stringent emission 

limitation or control technique of the following: 

3.9.1 Achieved in practice for such category and class of source; 

3.9.2 Contained in any State Implementation Plan approved by the 

Environmental Protection Agency for such category and class of source. 

A specific limitation or control technique shall not apply if the owner of 

the proposed emissions unit demonstrates to the satisfaction of the 

APCO that such a limitation or control technique is not presently 

achievable; or 

3.9.3 Contained in an applicable federal New Source Performance Standard; 

or 

3.9.4 Any other emission limitation or control technique, including process 

and equipment changes of basic or control equipment, found by the 

APCO to be cost effective and technologically feasible for such class or 

category of sources or for a specific source. 

3.10 Biomass-fired power facility: a facility generating electrical power and fueled 

exclusively on biomass fuels consisting of at least 90% of one or more of the 

following constituents: alfalfa, barley, beanstraw, corn, oats, wheat, orchard and 

vineyard pruning, and forest residues. Grape stems, grape pumice, almond and 

walnut shells, construction wood waste, urban wood waste, and lawn trimmings 

are not considered biomass fuels. 

3.11 Cargo Carriers: trains dedicated to a specific Stationary Source and vessel 

dockside activities as defined in 45 Federal Register 52696 (August 7, 1980) for 

vessels dedicated to a specific Stationary Source. Motor vehicles, as defined by 

the Vehicle Code of the State of California, are not considered Cargo Carriers. 

3.12 Clean Emissions Unit: for a given pollutant, an emissions unit that meets one of 

the following criteria: 

3.12.1 The unit is equipped with an emissions control technology with a 

minimum control efficiency of at least 95% (or at least 85% for leanburn, internal combustion engines); or 

3.12.2 The unit is equipped with emission control technology that meets the 

requirements for achieved-in-practice BACT as accepted by the APCO 

during the five years immediately prior to the submission of the 

complete application. 

3.13 Complete Application: an application for an Emission Reduction Credit or an 

Authority to Construct for a new or modified emissions unit which has been 
SJVUAPCD 2201 - 5 9/21/06

evaluated and found to include all information necessary to determine compliance 

with applicable rules and requirements. 

3.14 Contiguous or Adjacent Property: a property consisting of two or more parcels of 

land with a common point or boundary, or separated solely by a public roadway 

or other public right-of-way. 

3.15 Daily Emissions Limitation (DEL): one or more permit conditions which restrict 

a unit's maximum daily emissions, to a level at or below the emissions associated 

with the maximum design capacity. A daily emissions limitation must be: 

3.15.1 Contained in the latest Authority to Construct and contained in or 

enforceable by the latest Permit to Operate for the emissions unit; and 

3.15.2 Enforceable, in a practical manner, on a daily basis. 

3.16 Emissions Unit: an identifiable operation or piece of process equipment such as a 

source operation which emits, may emit, or results in the emissions of any 

affected pollutant directly or as fugitive emissions. 

3.17 Federal Major Modification: Major modifications are also federal major 

modifications, unless they meet the criteria of at least one of the following 

exclusions: 

3.17.1 Less-Than-Significant Emissions Increase Exclusion: An emissions 

increase for the project, or a net emissions increase for the project (as 

defined in 40 CFR 51.165 (a)(2)(ii)(B) through (D), and (F)), that is not 

significant for a given regulated NSR pollutant, is not a federal major 

modification for that pollutant. 40 CFR 51.165 (a)(2)(ii)(E), relating to 

clean units, shall not be used in these calculations. 

3.17.1.1 To determine the post-project projected actual emissions from 

existing units, the provisions of 40 CFR 51.165 (a)(1)(xxviii) 

shall be used. 

3.17.1.2 To determine the pre-project baseline actual emissions, the 

provisions of 40 CFR 51.165 (a)(1)(xxxv)(A) through (D) 

shall be used. 

3.17.1.3 If the project is determined not to be a federal major 

modification pursuant to the provisions of 40 CFR 51.165 

(a)(2)(ii)(B), but there is a reasonable possibility that the 

project may result in a significant emissions increase, the 

owner or operator shall comply with all of the provisions of 

40 CFR 51.165 (a)(6) and (a)(7). 
SJVUAPCD 2201 - 6 9/21/06

3.17.1.4 Emissions increases calculated pursuant to this section are 

significant if they exceed the significance thresholds specified 

in Table 3-1 of this rule. 

Table 3-1, Significance Thresholds 

POLLUTANT THRESHOLD (POUNDS PER YEAR) 

VOC 50,000 

NOx 50,000 

PM10 30,000 

SOx 80,000 

3.17.2 Plantwide Applicability Limit (PAL) Exclusion: A major modification 

that does not cause facility-wide emissions to exceed a pre-established 

PAL, as defined in 40 CFR 51.165 (f)(2)(v), for the respective pollutant, 

is not a federal major modification for that pollutant. 

3.17.2.1 For the purposes of this exclusion, a PAL must be 

established by a permitting action prior to the major 

modification permitting action. 

3.17.2.2 All PALs shall be established according to the provisions of 

40 CFR 51.165 (f)(1) through (15). 

3.17.2.3 All PALs shall comply with the requirements under 40 CFR 

51.165 (f)(1) through (15) to either maintain, renew or retire 

the PAL. 

3.18 Fugitive Emissions: emissions that could not reasonably pass through a vent, 

chimney, stack, or other functionally equivalent opening. Emissions that are not 

vented through a stack but can reasonably be captured and vented through a stack 

are not considered Fugitive. Fugitive emissions shall be included in all 

calculations, except as provided in Section 3.23. 

3.19 Fully Offset Emissions Unit: for a given pollutant, an emissions unit for which 

3.19.1 Offsets have been provided for the unit’s full potential to emit; or 

3.19.2 Offsets have been provided for the entire stationary source’s potential to 

emit in excess of the offset trigger level; or 

3.19.3 Offsets have previously been provided for the stationary source’s NSR 

balance as calculated pursuant to the NSR rule in effect at the time of the 

offset action, and the emissions unit was installed after the County 

baseline date as indicated below: 
SJVUAPCD 2201 - 7 9/21/06

 Table 3-2, County Baseline Dates 

COUNTY BASELINE DATE 

San Joaquin County May 29, 1979 

Stanislaus County June 19, 1979 

Merced, Madera, or Kings County May 21, 1979 

Fresno County Oil Fields September 20, 1983 

Fresno County all other sources January 1, 1977 

Tulare County June 26, 1979 

September 12, 1979 

Kern County 

Heavy Oil Production June 22, 1987 for heavy oil production operations 

with negative cumulative net emissions change as of 

June 22, 1987 

Kern County all other sources December 28, 1976 

3.20 Heavy Oil: crude oil having an American Petroleum Institute gravity of 20 

degrees or less as determined by test method ASTM 287-82. 

3.21 Highly Utilized Emissions Unit: for a given pollutant, an emissions unit for 

which the average annual Actual Emissions during the two consecutive years 

immediately prior to filing of an application for an Authority to Construct were 

equal to or greater than 80% of the unit’s pre-project Potential to Emit. The unit 

must have been in operation for at least two years and, during that entire period, 

the unit must have complied with all applicable emission limits and performance 

standards. 

3.22 Historical Actual Emissions (HAE): Actual Emissions occurring during the 

Baseline Period, after discounting for: 

3.22.1 Any emissions reductions required or encumbered by any laws, rules, 

regulations, agreements, orders, or permits; and 

3.22.2 Any emissions reductions attributed to a control measure noticed for 

workshop, or proposed or contained in a State Implementation Plan, and 

3.22.3 Any emissions reductions proposed in the District air quality plan for 

attaining the annual reductions required by the California Clean Air Act, 

and 

3.22.4 Any Actual Emissions in excess of those required or encumbered by any 

laws, rules, regulations, orders, or permits. For units covered by a 

Specific Limiting Condition (SLC), the total overall HAE for all units 

covered by SLC must be discounted for any emissions in excess of that 

allowed by the SLC. 
SJVUAPCD 2201 - 8 9/21/06

3.23 Major Modification: as defined in 40 CFR Part 51.165 (as in effect on December 

19, 2002) and part D of Title I of the CAA. For the purposes of this definition, 

the major modification thresholds for existing major sources are listed as follows: 

 Table 3-3, Major Modification Thresholds 

POLLUTANT THRESHOLD (POUNDS PER YEAR) 

VOC 50,000 

NOx 50,000 

PM10 30,000 

SOx 80,000 

3.24 Major Source: for each pollutant, a Stationary Source with post-project emissions 

or a post-project Stationary Source Potential to Emit (SSPE2), equal to or 

exceeding one or more of the following threshold values. 

3.24.1 For determining major source status, fugitives shall only be included for 

calculating the air pollutant post-project emissions or SSPE2 if the 

source is included in the list of source categories identified in the major 

source definition in 40 CFR Part 70.2, or when determining if a 

stationary source is a major air toxics source as defined in Rule 2520. 

 Table 3-4, Major Source Emission Thresholds 

POLLUTANT THRESHOLD (POUNDS PER YEAR) 

VOC 50,000 

NOx 50,000 

CO 200,000 

PM10 140,000 

SOx 140,000 

3.24.2 For the purpose of determining major source status, the SSPE2 shall not 

include the quantity of emission reduction credits (ERC) which have been 

banked since September 19, 1991 for Actual Emissions Reductions that 

have occurred at the source, and which have not been used on-site. This 

ERC quantity includes all ERC held as certificates and all emission 

reduction credits that have been sold or transferred. 

3.25 Modification: 

3.25.1 An action including at least one of the following items: 

3.25.1.1 Any change in hours of operation, production rate, or method 

of operation of an existing emissions unit, which would 

necessitate a change in permit conditions. 
SJVUAPCD 2201 - 9 9/21/06

3.25.1.2 Any structural change or addition to an existing emissions 

unit which would necessitate a change in permit conditions. 

Routine replacement shall not be considered to be a structural 

change. 

3.25.1.3 An increase in emissions from an emissions unit caused by a 

modification of the Stationary Source when the emissions unit 

is not subject to a daily emissions limitation. 

3.25.1.4 Addition of any new emissions unit which is subject to 

District permitting requirements. 

3.25.1.5 A change in a permit term or condition proposed by an 

applicant to obtain an exemption from an applicable 

requirement to which the source would otherwise be subject. 

3.25.2 A reconstructed Stationary Source shall be treated as a new Stationary 

Source and not as a modification. 

3.25.3 Unless previously limited by a permit condition, the following shall not 

be considered a modification: 

3.25.3.1 A change in ownership of an existing emissions unit with 

valid Permit to Operate provided that the APCO determines 

that all applicable offset provisions required by the Permit to 

Operate will be met; 

3.25.3.2 A change in ownership of an entire existing Stationary 

Source with a valid Permit to Operate; 

3.25.3.3 A change which consists solely of a transfer of location of an 

emissions unit within a Stationary Source; or 

3.25.3.4 Routine replacement of a whole or partial emissions unit 

where the replacement part is the same as the original 

emissions unit in all respects except for the serial number. 

3.26 Offsets: emission reductions recognized by the APCO in the form of Emission 

Reduction Credits that are issued in accordance with the provisions of Rule 2301 

(Emission Reduction Credit Banking), or other Actual Emissions Reductions that 

may be used to mitigate an emission increase as part of the same Stationary 

Source Project in accordance with the provisions of this rule. 

3.27 Potential to Emit: the maximum capacity of an emissions unit to emit a pollutant 

under its physical and operational design. Any physical or operational limitation 

on the capacity of the source to emit a pollutant, including pollution control 
SJVUAPCD 2201 - 10 9/21/06

equipment and restrictions in hours of operation or on the type or amount of 

material combusted, stored, or processed, shall be treated as part of its design 

only if the limitation or the effect it would have on emissions is incorporated into 

the applicable permit as an enforceable permit condition. 

3.28 PM10: particulate matter with an aerodynamic diameter smaller than or equal to 

a nominal ten microns as measured by an applicable reference test method or 

methods found in Article 2, Subchapter 6, Title 17, California Code of 

Regulations (commencing with Section 94100). 

3.29 Pre-baseline ERCs: Emission Reduction Credits that were banked prior to the 

baseline year for a given District-adopted and EPA-approved Attainment Plan. 

3.30 Precursor: a directly emitted air contaminant that, when released into the 

atmosphere, forms or causes to be formed or contributes to the formation of a 

secondary air contaminant for which an Ambient Air Quality Standard has been 

adopted, or whose presence in the atmosphere will contribute to the violation of 

one or more Ambient Air Quality Standards. The following precursor-secondary 

air contaminant relationships shall be used for the purposes of this rule: 

Table 3-5, Precursors 

PRECURSOR SECONDARY AIR 

CONTAMINANT 

Volatile Organic Compounds a. Photochemical oxidants (Ozone) 

b. The organic fraction of PM10 

Nitrogen Oxides 

a. Nitrogen Dioxide 

b. The nitrate fraction of PM10 

c. Photochemical oxidants (Ozone) 

Sulfur Oxides 

a. Sulfur dioxide 

b. Sulfates 

c. The sulfate fraction of PM10 

3.31 Quarter: for a non-Seasonal Source, this is defined as a calendar quarter. For a 

Seasonal Source, a quarter is defined as the entire operating season. 

3.32 Reasonable Further Progress: as defined by the federal Clean Air Act, Section 

182(c)(2)(b). 

3.33 Reconstructed Source: any Stationary Source undergoing reconstruction where 

the fixed capital cost of the new components exceeds 50% of the fixed capital cost 

of a comparable, entirely new Stationary Source. Fixed capital cost is the capital 

needed to provide depreciable components. Reconstructed Source cost shall 

include only the cost of all emission-producing equipment and associated integral 

activities at the stationary source. A reconstructed Stationary Source shall be 
SJVUAPCD 2201 - 11 9/21/06

considered a new Stationary Source and not as a modification of an existing 

Stationary Source. 

3.34 Routine Replacement: routine replacement in whole or in part of any article, 

machine, equipment, or other contrivance with a valid District Permit To Operate 

provided that all of the following conditions are met: 

3.34.1 There is no increase in permitted emissions from the Stationary Source. 

3.34.2 There is no increase in design capacity, unless an old part is no longer 

available in which case the replacement can result in a design capacity 

increase of up to 10%. No change to the permitted throughput or 

emissions is authorized due to a change in design capacity as part of 

routine replacement. Such changes shall require application for permit 

modification. 

3.34.2.1 Permitted throughputs are throughput limits upon which 

emission calculations are, or could be, based. 

3.34.2.2 If there are no throughput limiting conditions, permitted 

throughput shall be a throughput rate which affects 

emissions. 

3.34.3 The replacement equipment performs the same function as the 

equipment being replaced. 

3.34.4 The replacement does not constitute a Reconstructed Source (as defined 

by this rule) or Reconstruction (as defined by any applicable New 

Source Performance Standard). Reconstructed Source cost shall include 

only the cost of all emission-producing equipment and associated 

integral activities at the stationary source. 

3.34.5 When the entire emissions unit is replaced as a routine replacement 

action, the emissions unit shall either have been addressed by a BARCT 

rule or shall be equipped with a control device capable of at least 85% 

emission control. 

3.35 Seasonal Source: any Stationary Source with more than 90% of its annual 

emissions occurring within a consecutive 120-day period. 

3.36 Specific Limiting Condition (SLC): permit terms or conditions, which can be 

enforced in a practical manner, contained in Authorities to Construct and Permits 

to Operate and established pursuant to New Source Review provisions that restrict 

the total overall permitted emissions from two or more emissions units. 
SJVUAPCD 2201 - 12 9/21/06

3.37 Stationary Source: any building, structure, facility, or installation which emits or 

may emit any affected pollutant directly or as a fugitive emission. Building, 

structure, facility or installation includes all pollutant emitting activities including 

emissions units which: 

3.37.1 Are under the same or common ownership or operation, or which are 

owned or operated by entities which are under common control; and 

3.37.2 Belong to the same industrial grouping either by virtue of falling within 

the same two-digit standard industrial classification code or by virtue of 

being part of a common industrial process, manufacturing process, or 

connected process involving a common raw material; and 

3.37.3 Are located on one or more contiguous or adjacent properties; or 

3.37.4 Are located on one or more properties wholly within either the Western 

Kern County Oil Fields or the Central Kern County Oil Fields or Fresno 

County Oil Fields and are used for the production of light oil, heavy oil 

or gas. Notwithstanding the provisions of this definition, light oil 

production, heavy oil production, and gas production shall constitute 

separate Stationary Sources. 

3.38 Stationary Source Project: a single permitting action involving the modification, 

addition or shutdown of one or more emissions units. If any increase in emissions 

from a new or modified emissions unit is permitted based on emission reductions 

from one or more emissions units included in the stationary source project, the 

following condition must also be met: 

3.38.1 The modification or shutdown resulting in the necessary emission 

reductions shall occur not later than the date of initial operation of the 

new or modified emissions unit. If the new or modified emissions unit 

is, in whole or in part, a replacement for an existing emissions unit at 

the same stationary source, the APCO may allow a maximum of 90 days 

as a start up period for simultaneous operation of the existing emissions 

unit and the replacement emissions unit. 

3.39 Temporary Replacement Emissions Unit (TREU): an emissions unit which is at a 

Stationary Source for less than 180 days in any twelve month period and replaces 

an existing emissions unit which is shutdown for maintenance or repair. 

3.39.1 The Potential to Emit from a TREU must not exceed the Potential to 

Emit from the existing emissions unit. 

3.39.2 If a TREU is used to replace a TREU, the combined time at the 

Stationary Source for the two TREU shall not exceed a total of 180 days 

in any twelve-month period. 
SJVUAPCD 2201 - 13 9/21/06

3.39.3 An emissions unit not removed from the Stationary Source within 180 

days is not a TREU. 

4.0 Source Requirements 

4.1 Best Available Control Technology (BACT): BACT requirements shall be 

triggered on a pollutant-by-pollutant basis and on an emissions unit-by-emissions 

unit basis. Unless exempted pursuant to Section 4.2, BACT shall be required for 

the following actions: 

4.1.1 Any new emissions unit or relocation from one Stationary Source to 

another of an existing emissions unit with a Potential to Emit exceeding 

2.0 pounds in any one day; 

4.1.2 Modifications to an existing emissions unit with a valid Permit to 

Operate resulting in an Adjusted Increase in Permitted Emissions (AIPE) 

exceeding 2.0 pounds in any one day; 

4.1.3 Any new or modified emissions unit, in a stationary source project, 

which results in a Major Modification, as defined in this rule. 

4.2 BACT Exemptions: BACT shall not be required for the following: 

4.2.1 CO emissions from a new or modified emissions unit at a Stationary 

Source with a post project Stationary Source Potential to Emit (SSPE2) of 

less than 200,000 pounds CO per year; 

4.2.2 Cargo Carriers; 

4.2.3 For existing facilities, the installation or modification of an emission 

control technique performed solely for the purpose of compliance with the 

requirements of District, State or Federal air pollution control laws, 

regulations, or orders, as approved by the APCO, shall be exempt from 

Best Available Control Technology for all air pollutants, provided all of 

the following conditions are met: 

4.2.3.1 There shall be no increase in the physical or operational design 

of the existing facility, except for those changes to the design 

needed for the installation or modification of the emission 

control technique itself; 

4.2.3.2 There shall be no increase in the permitted rating or permitted 

operating schedule of the permitted unit; 

4.2.3.3 There shall be no increase in emissions from the stationary 

source that will cause or contribute to any violation of a 

National Ambient Air Quality Standard, Prevention of 
SJVUAPCD 2201 - 14 9/21/06

Significant Deterioration increment, or Air Quality Related 

Value in Class I areas; and 

4.2.3.4 The project shall not result in an increase in permitted 

emissions or potential to emit of more than 25 tons per year of 

NOx, or 25 tons per year of VOC, or 15 tons per year of SOx, 

or 15 tons per year of PM-10, or 50 tons per year of CO. 

4.2.3.5 The project shall not constitute a federal major modification. 

4.2.4 New emissions unit or modification of an existing emissions unit for 

voluntary reduction in emissions, for the sole purpose of generating 

emission reduction credits. This exemption applies only to the pollutant 

for which emission reduction credits are obtained. BACT may be 

required for other affected pollutants; 

4.2.5 Temporary Replacement Emissions Units; 

4.2.6 Routine Replacement; or 

4.2.7 Transfer of location of emissions units within the same stationary source. 

4.3 Adjusted Increase in Permitted Emissions (AIPE) Calculations: Adjusted Increase 

in Permitted Emissions shall be calculated as 

 AIPE = PE2 - HAPE 

Where: 

 AIPE = Adjusted Increase in Permitted Emissions, pounds per day 

 PE2 = the emissions units post project Potential to Emit, pounds per day 

 HAPE = the emissions unit’s Historically Adjusted Potential to Emit, pounds 

per day 

4.4 Historically Adjusted Potential to Emit (HAPE) Calculations: Historically 

Adjusted Potential to Emit shall be calculated as 

 HAPE = PE1 x (EF2 / EF1) 

Where: 

PE1 = The emissions unit’s Potential to Emit prior to modification or relocation 

EF2 = The emissions unit’s permitted emission factor for the pollutant after 

modification or relocation. If EF2 is greater than EF1 then EF2/EF1 shall 

be set to 1. 

EF1 = The emissions unit’s permitted emission factor for the pollutant before the 

modification or relocation 

4.5 Emission Offset Requirements: 

4.5.1 If emission offset requirements are triggered pursuant to Section 4.5.3, 
SJVUAPCD 2201 - 15 9/21/06

emission offsets shall be provided for net emissions increases resulting 

from a project. Offset quantities shall be calculated pursuant to Section 

4.7. 

4.5.2 For Stationary Sources with a quarterly Potential to Emit which remain 

constant throughout the year, the amount shall be calculated in pounds per 

year. For Stationary Sources with quarterly Potential to Emit that is not 

constant throughout the year, and for Seasonal Sources the amount shall 

be calculated in pounds per quarter. 

4.5.3 Offset requirements shall be triggered on a pollutant-by-pollutant basis. 

Unless exempted pursuant to Section 4.6, offsets shall be required if the 

post-project Stationary Source Potential to Emit (SSPE2) equals or 

exceeds the following offset threshold levels: 

 Table 4-1, Emissions Offset Threshold Levels 

POLLUTANT SSPE2 (POUNDS /YEAR) 

VOC 20,000 

NOx 20,000 

CO (non-attainment areas) 30,000 

CO (attainment areas) 200,000 

SOx 54,750 

PM10 29,200 

4.6 Emission Offset Exemptions: Emission offsets shall not be required for the 

following: 

4.6.1 Increases in carbon monoxide in attainment areas if the applicant 

demonstrates to the satisfaction of the APCO, that the Ambient Air 

Quality Standards are not violated in the areas to be affected, and such 

emissions will be consistent with Reasonable Further Progress, and will 

not cause or contribute to a violation of Ambient Air Quality Standards; 

4.6.2 Emergency equipment that is used exclusively as emergency standby 

equipment for electric power generation or any other emergency 

equipment as approved by the APCO that does not operate more than 200 

hours per year for non-emergency purposes and is not used pursuant to 

voluntary arrangements with a power supplier to curtail power. 

Equipment exempted by this section shall maintain a written record of 

hours of operation and shall have permit conditions limiting nonemergency operation; 

4.6.3 Portable equipment which is registered as such in accordance with the 

provisions of Rule 2280 (Portable Equipment Registration) or the 

Statewide Portable Equipment Registration Program (California Code of 
SJVUAPCD 2201 - 16 9/21/06

Regulation Title 13, Article 5, Sections 2450-2465). 

4.6.4 On-site soil or groundwater decontamination performed by, under the 

jurisdiction of, or pursuant to the requirements of an authorized health 

officer, agricultural commissioner, fire protection officer, or other 

authorized government officers, provided emissions do not exceed 4,000 

pounds per year of any affected pollutant from all emissions units 

associated with decontamination project; 

4.6.5 Temporary Replacement Emissions Units. 

4.6.6 A transfer of location of an entire Stationary Source within the District, 

under the same owner and provided: 

4.6.6.1 The Potential to Emit of any affected pollutant will not be 

greater at the new location than at the previous location when all 

emissions units are operated at the same permitted conditions; 

and 

4.6.6.2 BACT is applied to all emissions units with a Potential to Emit 

exceeding 2.0 pounds per day; and 

4.6.6.3 The transferred Stationary Source is not added to an existing 

Stationary Source. 

4.6.7 A transfer of location of an emissions unit from one Stationary Source to 

another within the District, under the same owner and provided: 

4.6.7.1 The Potential to Emit of any affected pollutant will not be 

greater at the new location than at the previous location when all 

emissions units are operated at the same permitted conditions, 

and 

4.6.7.2 The offsets that would be otherwise required for the unit at the 

new location have been provided for the emissions unit 

previously. 

4.6.8 For existing facilities, the installation or modification of an emission 

control technique performed solely for the purpose of compliance with the 

requirements of District, State or Federal air pollution control laws, 

regulations, or orders, as approved by the APCO, shall be exempt from 

offset requirements for all air pollutants provided all of the following 

conditions are met: 

4.6.8.1 There shall be no increase in the physical or operational design 

of the existing facility, except for those changes to the design 
SJVUAPCD 2201 - 17 9/21/06

needed for the installation or modification of the emission 

control technique itself; 

4.6.8.2 There shall be no increase in the permitted rating or permitted 

operating schedule of the permitted unit; 

4.6.8.3 There shall be no increase in emissions from the stationary 

source that will cause or contribute to any violation of a 

National Ambient Air Quality Standard, Prevention of 

Significant Deterioration increment, or Air Quality Related 

Value in Class I areas; and 

4.6.8.4 The project shall not result in an increase in permitted emissions 

or potential to emit of more than 25 tons per year of NOx, or 25 

tons per year of VOC, or 15 tons per year of SOx, or 15 tons 

per year of PM-10, or 50 tons per year of CO. 

4.6.9 Agricultural sources, to the extent provided by California Health and 

Safety Code, section 42301.18(c), except that nothing in this section shall 

circumvent the requirements of section 42301.16(a). 

4.7 Emission Offset Quantity Calculations: 

4.7.1 For pollutants with a pre-project Stationary Source Potential to Emit 

(SSPE1) greater than the emission offset threshold levels, emission offsets 

shall be provided for: 

4.7.1.1 All increases in Stationary Source emissions, calculated as the 

sum of differences between the post-project Potential to Emit 

(PE2) and the Baseline Emissions (BE) of all new and modified 

emissions units, plus 

4.7.1.2 All increases in Cargo Carrier emissions. 

4.7.2 For pollutants with a pre-project Stationary Source Potential to Emit 

(SSPE1) less than or equal to the offset threshold levels, emission offsets 

shall be provided for: 

4.7.2.1 All increases in Stationary Source emissions above the offset 

trigger levels, calculated as the difference between the SSPE2 

and the offset trigger level, plus 

4.7.2.2 All increases in Cargo Carrier emissions. 

4.7.3 The quantity of offsets calculated pursuant to Sections 4.7.1 and 4.7.2 

shall be multiplied by the appropriate Distance Offset Ratio to determine 

the final quantity of offsets required. 
SJVUAPCD 2201 - 18 9/21/06

4.7.4 PM10 Emissions: In determining the quantity of required PM10 offsets, 

the Total Suspended Particulate Matter (TSP) emissions for which full 

offsets have been previously provided shall not be recalculated as PM10. 

4.8 Distance Offset Ratio: For offset calculations, the Distance Offset ratio shall be 

as shown below: 

Table 4-2, Distance Offset Ratio 

ORIGINAL LOCATION OF EMISSION OFFSETS OFFSET RATIO 

at the same Stationary Source as the new or modified 

emissions unit 1.0 

within 15 miles of the new or modified emissions unit’s 

Stationary Source 

1.2 for Non-Major Sources 

1.3 for Major Sources 

15 miles or more from the new or modified emissions 

unit’s Stationary Source 1.5 

4.9 Pre-project Stationary Source Potential to Emit (SSPE1) shall be calculated as the 

sum of the following: 

4.9.1 The Potential to Emit from all units with valid Authorities to Construct 

(ATC) or Permits to Operate (PTO) at the Stationary Source. 

4.9.1.1 For a unit with both a valid ATC and a PTO or a unit with 

multiple valid ATC, use the ATC or PTO with the highest 

potential emissions. 

4.9.1.2 For units subject to an SLC, the Potential to Emit shall be based 

on the overall Potential to Emit limit for all units covered by the 

SLC and not the sum of the individual Potential to Emit of each 

emissions unit. 

4.9.2 The quantity of emission reduction credits (ERC) which have been banked 

since September 19, 1991 for Actual Emissions Reductions that have 

occurred at the source, and which have not been used on-site. This 

quantity includes all ERC held as certificates and all emission reduction 

credits that have been sold or transferred. Reductions shall be added to 

the SSPE1 as positive values. 

4.10 Post-project Stationary Source Potential to Emit (SSPE2) shall be calculated, on a 

pollutant-by-pollutant basis, as the sum of the following: 

4.10.1 The Potential to Emit from all units with valid Authorities to Construct 

or Permits to Operate at the Stationary Source, except for emissions 

units proposed to be shutdown as part of a Stationary Source Project. 

4.10.1.1 The Potential to Emit of the post-project Authority to 
SJVUAPCD 2201 - 19 9/21/06

Construct will be used for new or modified units, provided 

that the ATC will include new conditions canceling the 

existing ATC or PTO for those units, otherwise use the ATC 

or PTO with the highest potential emissions. 

4.10.1.2 For units subject to an SLC, the Potential to Emit shall be 

based on the overall Potential to Emit limit for all units 

covered by the SLC and not the sum of the individual 

Potential to Emit of each emissions unit. 

4.10.2 The quantity of emission reduction credits (ERC) which have been 

banked since September 19, 1991 for Actual Emissions Reductions that 

have occurred at the source, and which have not been used on-site. This 

quantity includes all ERC held as certificates and all emission reduction 

credits that have been sold or transferred. Reductions shall be added to 

the SSPE2 as positive values. 

4.11 Calculations involving PM10 emissions 

4.11.1 For existing Stationary Sources for which particulate matter emissions 

have been calculated as Total Suspended Particulate (TSP), the PM10 

emissions shall be recalculated from TSP values using PM10 emission 

factors or speciation data. 

4.11.2 In the absence of PM10 emissions factors or speciation data, assume 

50% of the total suspended particulates is PM10. 

4.11.3 If the applicant has previously provided full offsets for total suspended 

particulate matter emissions, those total suspended particulate matter 

emissions need not be recalculated as PM10, for the purpose of 

determining the quantity of offsets. 

4.12 Actual Emissions Reductions (AER) Calculations: Actual Emissions Reductions 

shall be calculated, on a pollutant-by-pollutant basis, as follows: 

 

AER = HAE - PE2 

Where: 

HAE = Historic Actual Emissions 

PE2 = Post-project Potential to Emit 

4.12.1 Prior to banking, AER shall be discounted by 10 percent (10%) for Air 

Quality Improvement Deduction, and shall comply with all applicable 

provisions of Rule 2301 (Emission Reduction Credit Banking). 

4.13 Additional Offset Requirements: Offsets obtained subject to this rule shall comply 

with the following provisions: 
SJVUAPCD 2201 - 20 9/21/06

4.13.1 Major Source shutdowns or permanent curtailments in production or 

operating hours of a Major Source may not be used as offsets for 

emissions from a Major Source or a Major Modification, unless the 

ERC, or the emissions from which the ERC are derived, has been 

included in an EPA-approved attainment plan. 

4.13.2 Offsets from another district may be used only if the source of the 

offsets is within 50 miles of the proposed emissions increases and the 

APCO has reviewed the permit conditions issued by the district in which 

the proposed offsets are obtained and certifies that such offsets meet the 

requirements of this rule and CH&SC Section 40709.6. 

4.13.3 Interpollutant offsets may be approved by the APCO on a case-by-case 

basis, provided that the applicant demonstrates to the satisfaction of the 

APCO, that the emission increases from the new or modified source will 

not cause or contribute to a violation of an Ambient Air Quality 

Standard. In such cases, the APCO shall, based on an air quality 

analysis, impose offset ratios equal to or greater than the requirements of 

this rule. 

4.13.3.1 In no case shall exempt compounds or the other compounds 

excluded from the definition of VOC be used as offsets for 

VOC. 

4.13.3.2 Interpollutant offsets between PM10 and PM10 precursors 

may be allowed. 

4.13.3.3 PM10 emissions shall not be allowed to offset NOx or 

reactive organic compound emissions in ozone nonattainment 

areas, nor be allowed to offset SO2 emissions in sulfate 

nonattainment areas. 

4.13.3.4 Interpollutant offsets between NOx and VOC may be 

allowed. 

4.13.4 Actual Emissions Reductions (AER) used as offsets must have occurred 

during the same calendar quarter as the emissions increases being offset 

except as allowed pursuant to Sections 4.13.6 through 4.13.9. 

4.13.5 AER used as offsets for a Seasonal Source must have occurred during 

the same time period as the proposed source will operate except as 

allowed pursuant to Sections 4.13.6 through 4.13.9. 

4.13.6 AER used as offsets for a biomass-fired power facility may have 

occurred during any quarter. 
SJVUAPCD 2201 - 21 9/21/06

4.13.7 AER for PM that occurred from October through March, inclusive, may 

be used to offset increases in PM during any period of the year. 

4.13.8 AER for NOx and VOC that occurred from April through November 

may be used to offset increases in NOx and VOC during any period of 

the year. 

4.13.9 AER for CO that occurred from November through February may be 

used to offset increases in CO during any period of the year. 

4.13.10 AER used as offsets for new and modified Major Sources must be 

obtained from an area: 

4.13.10.1 That has a nonattainment classification that is equal to or 

higher than the area in which the new or modified Major 

Source is located, and 

4.13.10.2 Where emissions contribute to a violation of a national 

Ambient Air Quality Standard in the area in which the new 

or modified Major Source is located. 

4.13.11 Offsets required as a condition of an Authority to Construct or a Permit 

to Operate shall commence not later than the date of initial operation of 

the new or modified emissions unit. 

4.13.11.1 If the new or modified emissions unit is, in whole or in part, 

a replacement for an existing emissions unit at the same 

stationary source, the APCO may allow a maximum of 90 

days as a start up period for simultaneous operation of the 

existing emissions unit and the replacement emissions unit. 

4.13.12 Nothing in this rule shall be construed as requiring ERC used as NSR 

offsets to be discounted at time of use, except for the additional offsets 

as required by Sections 4.8, 4.13.3, and as described in Section 7.0. 

4.14 Ambient Air Quality Standards: 

4.14.1 Emissions from a new or modified Stationary Source shall not cause or 

make worse the violation of an Ambient Air Quality Standard. In 

making this determination, the APCO shall take into account the 

increases in minor and secondary source emissions as well as the 

mitigation of emissions through offsets obtained pursuant to this rule. 

Modeling used for the purposes of this rule shall be consistent with the 

requirements contained in the most recent edition of EPA's "Guideline 

on Air Quality Models" unless the APCO finds such model is 

inappropriate for use. After making such a finding, the APCO may 
SJVUAPCD 2201 - 22 9/21/06

designate an alternative model only after allowing for public comments 

and only with the concurrence of the ARB or the EPA. 

4.14.1.1 At the discretion of the APCO, a new or modified source 

which is not subject to the public noticing requirements of 

Section 5.4 shall be exempted from the requirements of 

Section 4.14.1. 

4.15 Additional Requirements for new Major Sources and Federal Major Modifications 

4.15.1 Alternative siting: For those sources for which an analysis of alternative 

sites, sizes, and production processes is required under Section 173 of 

the Federal Clean Air Act, the applicant shall prepare an analysis 

functionally equivalent to the requirements of Division 13, Section 

21000 et. seq. of the Public Resources Code. 

4.15.2 Compliance by Other Owned, Operated, or Controlled Source: The 

owner of a proposed new Major Source or federal major modification 

shall demonstrate to the satisfaction of the APCO that all major 

Stationary Sources owned or operated by such person (or by any entity 

controlling, controlled by, or under common control with such person) 

in California which are subject to emission limitations are in compliance 

or on a schedule for compliance with all applicable emission limitations 

and standards. 

5.0 Administrative Requirements 

The administrative requirements of Sections 5.1 through 5.7, inclusive, shall be applied 

to all applications for a new or modified emissions unit except for power plants proposed 

to be constructed in the District and for which a Notice of Intention (NOI) or Application 

for Certification (AFC) has been accepted by the California Energy Commission. For 

such power plants, the administrative requirements of Section 5.8 shall apply. 

5.1 Complete Application: The APCO shall determine whether the application is 

complete not later than 30 days after receipt of the application, or after such 

longer time as both the applicant and the APCO may agree. 

5.1.1 If the APCO determines that the application is not complete, the applicant 

shall be notified in writing of the decision specifying the information 

required. Upon receipt of any resubmittal of the application, a new 30-

day period to determine completeness shall begin. 

5.1.2 Completeness of an application or resubmitted application shall be 

evaluated on the basis of the information requirements set forth in the 

District Rules and Regulations as they exist on the date on which the 

application or resubmitted application is received. 
SJVUAPCD 2201 - 23 9/21/06

5.1.3 Upon determination that the application is complete, the APCO shall 

notify the applicant in writing. 

5.1.4 The APCO may, during the processing of the application, request an 

applicant to clarify, amplify, correct, or otherwise supplement the 

information submitted in the application. 

5.2 Preliminary Decision: Following acceptance of an application as complete, the 

APCO shall perform the evaluations required to determine compliance with this 

rule and make a preliminary written decision as to whether an Authority to 

Construct should be approved, conditionally approved, or disapproved. 

5.2.1 The APCO shall deny any Authority to Construct if the APCO finds that 

the subject of the application would not comply with the standards set 

forth in this rule or any other District rule. 

5.2.2 The decision shall be supported by a succinct, written analysis. 

5.3 Final Action: Within 180 days after acceptance of an application as complete, or 

within 180 days after the lead agency has approved the project under the 

California Environmental Quality Act, whichever occurs later, the APCO shall 

take final action on the application after considering all written comments. 

5.4 Public Notification and Publication Requirements: The APCO shall provide 

public notification and publication for the following types of applications: 

5.4.1 New Major Sources and Major Modifications. 

5.4.2 Applications which include a new emissions unit with a Potential to Emit 

greater than 100 pounds during any one day for any one affected pollutant; 

5.4.3 Modifications that increase the Stationary Source Potential to Emit 

(SSPE1) from a level below the emissions offset threshold level to a level 

exceeding the emissions offset threshold level for one or more pollutants; 

5.4.4 New Stationary Sources with post-project Stationary Source Potential to 

Emit (SSPE2) exceeding the emissions offset threshold level for one or 

more pollutants; 

5.4.5 Any permitting action resulting in a Stationary Source Project Increase in 

Permitted Emissions (SSIPE) exceeding 20,000 pounds per year for any 

one pollutant. 

5.5 Public Notification and Publication Actions: For the types of applications listed in 

Section 5.4, the APCO shall perform the following actions: 

5.5.1 Within ten (10) calendar days following the preliminary decision the 
SJVUAPCD 2201 - 24 9/21/06

APCO shall publish in at least one newspaper of general circulation in the 

District a notice stating the preliminary decision, noting how pertinent 

information can be obtained, and inviting written public comment for a 30 

day period following the date of publication. 

5.5.2 No later than the date of publication, the APCO shall transmit to the 

applicant its preliminary written decision, the analysis, and a copy of the 

notice submitted for publication. 

5.5.3 No later than the date of publication, the APCO shall transmit to the ARB 

and to any person who requests such information, its preliminary written 

decision, the analysis, and a copy of the notice submitted for publication. 

For new Major Sources and Major Modifications, the APCO shall also 

transmit the preliminary written decision and supporting documents to the 

EPA. 

5.5.4 No later than the time the notice of the preliminary decision is published, 

the APCO shall make available for public inspection at the District office 

the information submitted by the applicant and the analysis. 

5.5.5 The APCO shall provide written notice of the final action to the applicant, 

and the ARB, and shall publish such notice in a newspaper of general 

circulation, except that for an application not subject to Section 5.4, the 

APCO shall not be subject to this section. In such a case, the applicant 

shall receive notification as provided in Rule 2040 (Applications). For 

new Major Sources and Major Modifications, the APCO shall also 

transmit written notice of the final action to the EPA. 

5.5.6 No later than the time of notice of final action is published, the APCO 

shall make available for public inspection at the District office a copy of 

the notice submitted for publication and all supporting documents. 

5.6 Authority to Construct (ATC) - General Conditions 

5.6.1 An ATC shall not be issued unless the new or modified source complies 

with the provisions of this rule and all other applicable District Rules and 

Regulations. 

5.6.2 An ATC shall require that the new or modified source be built according 

to the specifications and plans contained in the application. 

5.6.3 An ATC shall include all those conditions which the APCO deems 

necessary to assure construction and operation in the manner assumed in 

making the analysis to determine compliance with this rule. 
SJVUAPCD 2201 - 25 9/21/06

5.6.4 An ATC shall include all those conditions relating to the satisfaction of the 

offset requirements of this rule. 

5.6.5 An ATC issued for an emissions unit that relies on reduction in emissions 

from other units included in the Stationary Source Project, must include a 

condition that requires initiating and completing construction on those 

units that provide the reduction prior to commencing operation of the unit 

with increase in emissions. 

5.6.5.1 If the new or modified emissions unit is, in whole or in part, a 

replacement for an existing emissions unit at the same stationary 

source, the APCO may allow a maximum of 90 days as a start 

up period for simultaneous operation of the existing emissions 

unit and the replacement emissions unit. 

5.7 Permit to Operate (PTO) - General Conditions 

5.7.1 A PTO shall require that the new source or modification be operated in the 

manner assumed in making the analysis to determine compliance with this 

rule and as conditioned in the Authority to Construct. 

5.7.2 A PTO shall include daily emissions limitations and other enforceable 

conditions which reflect applicable emission limits including the offset 

requirements. 

5.7.3 The APCO shall determine if the applicant has complied with all the 

conditions in the ATC. The APCO may allow conditions which have not 

been met at the time the PTO is issued to be incorporated into the Permit 

to Operate, provided that compliance with that condition is demonstrated 

by a specified date. 

5.7.4 Any source which provides offsets shall be subject to enforceable permit 

conditions containing specific operational and emissions limitations, which 

ensure that the emissions reductions will be provided in accordance with 

the provisions of this rule and shall continue for the reasonably expected 

life of the proposed source. Where the source of offsets is not subject to a 

permit, a written contract shall be required between the applicant and the 

owner of such source, which contract, by its terms, shall be enforceable 

by the APCO. The permit and contract shall be submitted to the ARB to 

be forwarded to the EPA as part of the State Implementation Plan. A 

violation of the emission limitation provisions of any such contract shall be 

chargeable to the applicant. 

5.7.5 Offsets required as a condition of an ATC or a PTO shall commence not 

later than the date of initial operation of the new or modified source, 
SJVUAPCD 2201 - 26 9/21/06

5.7.5.1 If a new or modified Stationary Source is, in whole or in part, a 

replacement for an existing Stationary Source on the same or 

contiguous property the APCO may allow a maximum of 90 days 

as a start up period for simultaneous operation of the existing 

Stationary Source and the new or replacement source. 

5.8 Power plants which will be licensed by the California Energy Commission: The 

administrative requirements of this section shall be applied to all power plants 

proposed to be constructed in the District and for which a Notice of Intention 

(NOI) or Application for Certification (AFC) has been accepted by the California 

Energy Commission. The APCO may apply for reimbursement of all costs 

incurred, including lost fees, in order to comply with the provisions of this 

section. 

5.8.1 Intent to Participate and Preliminary Report: Within 14 days of receipt of 

a NOI, the APCO shall notify the ARB and the California Energy 

Commission of the APCO's intent to participate in the NOI proceeding. If 

the APCO chooses to participate in the NOI proceeding, the APCO shall 

prepare and submit a report to the ARB and the California Energy 

Commission prior to the conclusion of the nonadjudicatory hearings 

specified in Section 25509.5 of the Public Resources Code. The report 

shall include at least: 

5.8.1.1 A preliminary specific definition of BACT for the proposed 

facility. 

5.8.1.2 A preliminary discussion of whether there is substantial 

likelihood that the requirements of this rule and all other District 

rules can be satisfied by the proposed facility. 

5.8.1.3 A preliminary list of conditions which the proposed facility must 

meet in order to comply with this rule or any other applicable 

District rules. The preliminary determinations contained in the 

report shall be as specific as possible within the constraints of the 

information contained in the NOI. 

5.8.2 Equivalency of Application for Certification to Application for Authority 

to Construct: The APCO shall consider an Application for Certification 

(AFC) to be equivalent to an application for an Authority to Construct, 

and subject, as such, to all definitions and requirements of this rule. 

5.8.3 Upon receipt of an AFC for a power plant, the APCO shall conduct a 

Determination of Compliance review. This review shall determine 

whether an AFC is complete, and within 20 calendar days of receipt of the 

AFC, the APCO shall so inform the California Energy Commission and 

the applicant in writing. 
SJVUAPCD 2201 - 27 9/21/06

5.8.3.1 If the APCO determines that the application is not complete, the 

information required shall be specified, and the AFC shall be 

returned to the applicant for resubmittal. Upon receipt of any 

resubmittal of the application, a new 20 day period to determine 

completeness shall begin. 

5.8.3.2 Completeness of an application or resubmitted application shall 

be evaluated on the basis of the information requirements set 

forth in District Rules and Regulations as they exist on the date 

on which the application or resubmitted application is received. 

5.8.4 The APCO may request from the applicant any information necessary for 

the completion of the Determination of Compliance review. If the APCO 

is unable to obtain the information, the APCO may petition the presiding 

Commissioner of the California Energy Commission for an order directing 

the applicant to supply such information. 

5.8.5 Within 180 days of accepting an AFC as complete, the APCO shall make 

a preliminary written decision as to whether a Determination of 

Compliance Certification should be approved, conditionally approved, or 

disapproved. The APCO shall deny any Determination of Compliance 

Certification if the APCO finds that the subject of the application would 

not comply with the standards set forth in this rule or any other District 

rule. The decision shall be supported by a succinct, written analysis. 

5.8.6 Notification and Publication actions shall be conducted according to the 

requirements of Section 5.5. 

5.8.7 Within 240 days after acceptance of an application as complete, the 

APCO, after considering all written comments, shall take final action on 

the application, which action shall consist of the following: 

5.8.7.1 The APCO, if all requirements of this rule are met, shall issue 

and submit to the California Energy Commission a 

Determination of Compliance, or advise the Commission that a 

Determination of Compliance cannot be issued. 

5.8.7.2 Public inspection of final action documents shall be provided for 

in accordance with Section 5.5.6 

5.8.8 Equivalency of Determination of Compliance to Authority to Construct: 

A Determination of Compliance shall confer the same rights and privileges 

as an Authority to Construct provided that the California Energy 

Commission approves the Application for Certification and the certificate 

granted by the Commission includes all conditions of the Determination of 

Compliance. 
SJVUAPCD 2201 - 28 9/21/06

5.8.9 The APCO shall issue a Permit to Operate to any applicant receiving a 

certificate from the California Energy Commission pursuant to this rule 

provided that the construction or modification is in compliance with all 

conditions of the certificate and of the Determination of Compliance, and 

provided that the Permit to Operate includes the conditions prescribed in 

Section 5.7. 

5.9 Enhanced Administrative Requirement 

 Application for a certificate of conformity with the procedural requirements of 40 

CFR Part 70, shall be subject to the following enhanced administrative 

requirements in addition to any other applicable administrative requirements of 

Section 5.0: 

5.9.1 New Sources and Significant Permit Modifications 

5.9.1.1 Public Notification: The APCO shall provide a written notice of 

the proposed permit and, upon request, copies of the APCO 

analysis to interested parties. Interested parties shall include 

affected states, ARB and persons who have requested in writing 

to be notified. The notice shall also be given by publication in a 

newspaper of general circulation in the District and by any other 

means if necessary to assure adequate notice to the affected 

public. The public shall be given 30 days from the date of 

publication to submit written comments on the APCO's proposed 

action. 

5.9.1.2 The notice shall provide the following information: 

5.9.1.2.1 The identification of the source, the name and address 

of the permit holder, the activities and emissions 

change involved in the permit action; 

5.9.1.2.2 The name and address of the APCO, the name and 

telephone number of District staff to contact for 

additional information; 

5.9.1.2.3 The availability, upon request, of a statement that sets 

forth the legal and factual basis for the proposed 

permit conditions; 

5.9.1.2.4 The location where the public may inspect the 

Complete Application, the APCO's analysis, the 

proposed permit, and all relevant supporting 

materials; 
SJVUAPCD 2201 - 29 9/21/06

5.9.1.2.5 A statement that the public may submit written 

comments regarding the proposed decision within at 

least 30 days from the date of publication and a brief 

description of commenting procedures, and 

5.9.1.2.6 A statement that members of the public may request 

the APCO or his designee to preside over a public 

hearing for the purpose of receiving oral public 

comment, if a hearing has not already been 

scheduled. The APCO shall provide notice of any 

public hearing scheduled to address the proposed 

decision at least 30 days prior to such hearing; 

5.9.1.3 The APCO shall provide written response to persons or agencies 

that submitted written comments which are postmarked by the 

close of the public notice and comment period. All written 

comments and responses to such comments shall be kept on file 

at the District office and made available upon request. 

5.9.1.4 A copy of the Complete Application, the APCO's analysis and 

the proposed permit shall be made available at District offices for 

public review and comment during normal business hours. The 

APCO's analysis shall include a statement that sets forth the legal 

and factual basis for the proposed permit conditions, including 

references to the applicable statutory and regulatory provisions. 

5.9.1.5 The APCO shall provide written notice to the EPA of the 

proposed decision along with copies of the proposed permit, the 

APCO's analysis, the public notice submitted for publication, 

and all necessary supporting information. 

5.9.1.6 If the EPA does not object pursuant to Section 5.9.1.9, the 

APCO shall issue the final permit. 

5.9.1.7 If the EPA does not object in writing to the APCO's preliminary 

decision during the EPA's 45 day review period, any person may 

petition the EPA within 60 days after the expiration of the EPA's 

45 day review period. Any such petition shall be based only on 

objections to the permit that were raised with reasonable 

specificity during the public comment period, unless the 

petitioner demonstrates to the EPA that it was impracticable to 

raise such objections within such period, or unless grounds for 

such objections arose after such period. Petitions shall be based 

on the compliance of the permit provisions with applicable 

requirements. 
SJVUAPCD 2201 - 30 9/21/06

5.9.1.8 Within 180 days after acceptance of an application as complete, 

or within 180 days after the lead agency has approved the project 

under the California Environmental Quality Act, whichever 

occurs later, the APCO shall take final action on the application 

after considering all written comments. 

5.9.1.9 The APCO shall not issue a permit if the EPA objects to its 

issuance in writing within 45 days of receipt of the APCO's 

notice of preliminary decision on the proposed permit. 

5.9.1.9.1 Any EPA objection shall include a statement of the 

EPA's reasons for objection and a description of the 

terms and conditions that the permit must include to 

respond to the objections. The EPA shall provide the 

permit applicant a copy of the objection. 

5.9.1.9.2 If the APCO fails, within 90 days after the date of 

EPA's objection, or within 180 days from the date the 

application was deemed complete plus any extension 

allowed by the state law, whichever is sooner, to 

revise and submit a proposed permit in response to 

the objection, the APCO shall not issue a certification 

on conformity to Title V. 

5.9.1.9.3 If the EPA objects to the permit as a result of a public 

petition, the APCO shall not issue the permit until 

EPA's objection has been resolved, except that a 

petition for review does not stay the effectiveness of a 

permit or its requirements if the permit was issued 

after the end of the 45-day review period and prior to 

an EPA objection. If the APCO has issued a permit 

prior to receipt of an EPA objection, the EPA will 

modify, terminate, or revoke such permit, and shall 

do so consistent with procedures in Section 70.7(g)(4) 

or (5)(i) and (ii) of the 40 CFR regulations, and the 

APCO may thereafter reissue only a revised permit 

that satisfies EPA objection. 

5.9.1.9.4 EPA objection shall be limited to compliance with 

applicable requirements and the requirements of 40 

CFR part 70. 

5.9.2 Minor Permit Modifications 

5.9.2.1 Within 5 working days after the receipt of a Complete 

Application for a minor permit modification, the APCO shall 
SJVUAPCD 2201 - 31 9/21/06

provide notification of the proposed permit modification to the 

EPA, affected states, and interested parties pursuant to Section 

5.9.1.1. 

5.9.2.2 The APCO shall not issue a final permit modification until after a 

45-day period review of the proposed permit modification by 

EPA or until EPA has notified the APCO that EPA will not 

object to issuance of the permit modification, whichever is first. 

5.9.2.3 Within 90 days after APCO's receipt of an application for a 

minor permit modification or 15 days after the end of the EPA's 

45-day review, whichever is later, the APCO shall do one of the 

following: 

5.9.2.3.1 Issue the permit as proposed; 

5.9.2.3.2 Deny the permit modification application; 

5.9.2.3.3 Determine that the requested modification does not 

meet the minor permit modification criteria and 

should be reviewed pursuant to the administrative 

requirements for significant permit modifications; or 

5.9.2.3.4 Revise the draft permit modification and transmit the 

new proposed permit modification to EPA and the 

affected states. 

6.0 Certification of Conformity 

A new or modified source subject to the requirements of Rule 2520 may choose to apply 

for a certificate of conformity with the procedural requirements of 40 CFR Part 70. A 

certification of conformity will allow changes authorized by the Authority to Construct to 

be incorporated into the Part 70 permit as administrative permit amendments. 

6.1 The APCO will issue a written certificate of conformity with the procedural 

requirements of 40 CFR 70.7 and 70.8, and with the compliance requirements of 

40 CFR 70.6(8)(c), if the following conditions are met: 

6.1.1 The Authority to Construct is issued in conformance with the Enhanced 

Administrative Requirements of this rule; 

6.1.2 The content of the Authority to Construct issued by the APCO complies 

with the requirements set forth in Section 9.0 of District Rule 2520 

(Federally Mandated Operating Permits); 

6.1.3 An application for a certificate of conformity with the requirements of 40 

CFR Part 70 is submitted with the application for Authority to Construct. 
SJVUAPCD 2201 - 32 9/21/06

The content of application for the certificate of conformity must comply 

with the requirements of Sections 7.1 of District Rule 2520 (Federally 

Mandated Operating Permits); 

6.1.4 The Authority to Construct contains a statement of conformity with the 

requirements of Title V and 40 CFR Part 70; 

6.1.5 EPA has not objected to the issuance of the Authority to Construct, or 

EPA's objections have been resolved to the satisfaction of EPA 

administrator; and 

6.1.6 The Part 70 operating permit being issued will contain the federally 

enforceable requirements contained in the Authority to Construct. 

6.2 The certificate of conformity with the procedural requirements of 40 CFR Part 70 

is valid as long as the Authority to Construct with which it was issued is valid. 

6.3 Modifications to an Authority to Construct for which a certificate of conformity 

has been issued are subject to the administrative requirements of Section 11.0 of 

District Rule 2520 that apply to permit modifications and changes, as well as the 

requirements of all District Rules that apply to modifications of Authorities to 

Construct. 

7.0 Annual Offset Equivalency Demonstration and Pre-baseline ERC Cap Tracking System 

7.1 Offset Tracking System 

The APCO shall implement a system for tracking the following for each 

permitting action: 

7.1.1 The quantity of offsets that would have been required for new major 

sources and federal major modifications in the District had the federal new 

source review requirements, codified in 40 CFR 51.165, and Title I part 

D of the Clean Air Act (CAA), been applied to these sources. These 

requirements include offsetting the full emissions from new major sources, 

using actual emissions baselines when required under 40 CFR 51.165, and 

providing offsets necessary to meet the CAA offset ratio requirements and 

provide a net air quality benefit. 

7.1.2 The quantity of offsets actually required for all new and modified sources 

in the District pursuant to the requirements of this rule, and, for the 

purposes of the Pre-baseline ERC Cap Tracking System outlined in any 

District-adopted and EPA-approved attainment plan. 

7.1.3 The surplus value of creditable emission reductions used as offsets by 

stationary sources. 
SJVUAPCD 2201 - 33 9/21/06

7.1.3.1 The surplus value shall be determined at the time of ATC 

issuance for the sources using the emission reductions to satisfy 

offset requirements of this rule. 

7.1.3.2 The determination of surplus value shall specify all requirements 

that apply to the offsets being reviewed, the methodology used to 

calculate the impact of these requirements, and all calculations 

performed in arriving at the final surplus value. 

7.1.4 For purposes of the requirements of Section 7.0, surplus value shall be 

defined as the quantity of actual emission reductions achieved by a source 

in excess of the following requirements: 

7.1.4.1 Any emission reduction required by a stand-alone federal 

requirement or regulation, including, but not limited to, Acid 

Rain, New Source Performance Standard, Reasonably Available 

Control Technology, and Maximum Achievable Control 

Technology, whether or not the requirements are part of the State 

Implementation Plan (SIP) or a local attainment plan. 

7.1.4.2 Any emission reduction relied upon by a permitting authority for 

attainment purposes, such as through an attainment plan, 

including emission reductions relied upon for Reasonable Further 

Progress calculations. 

7.1.4.3 Any emission reduction achieved by shutting down an existing 

source or curtailing production or operating hours below baseline 

levels whose original emission is not included in the District’s 

emission inventory. 

7.1.4.4 Any emission reduction based on a source-specific or source 

category-specific SIP provision used to comply with CAA 

requirements. 

7.1.4.5 Any emission reduction required by a condition of a permit 

issued to comply with CAA New Source Review requirements, 

except that any emission reduction required by a permit 

condition, which was placed on a permit solely to assure 

compliance with a state or local requirement, which is not on its 

own federally enforceable, shall not be included in this class. 

7.1.4.6 Any emission reduction based on a source-specific emission 

limitation resulting from an EPA enforcement case. 

7.1.5 For purposes of the requirements of Section 7.0, creditable shall be 

defined as emission reductions are real, surplus, quantifiable, enforceable 
SJVUAPCD 2201 - 34 9/21/06

and permanent. The creditability of a given emission reduction may be 

subject to review by the EPA. 

7.2 Annual Demonstration Report 

The APCO shall annually prepare a report with the following demonstrations to 

be provided to the public, the ARB and the EPA in accordance with the dates 

specified in Section 7.3. The District shall also make available to the public, the 

ARB and the EPA the data used to prepare the demonstrations. 

7.2.1 Demonstration on Equivalency of Offset Requirements 

7.2.1.1 The report shall include a comparison of the annual quantity of 

federal offsets that would have been required (as tracked 

pursuant to Section 7.1.1) to the annual quantity of offsets 

actually required under this rule, including any excess offsets 

required from previous reporting years (as tracked pursuant to 

Section 7.1.2). 

7.2.1.2 The report shall also describe any additional emission reductions 

retired to address a shortfall in required offsets as specified in 

Section 7.4.1.1. Such description shall, at a minimum, specify 

the emission reductions used and the surplus value of those 

reductions. The surplus value of these reductions may also be 

used in demonstrating equivalency under section 7.2.2 

7.2.2 Demonstration on Creditability of Emission Reductions 

7.2.2.1 The report shall include a comparison of the annual quantity of 

federal offsets that would have been required (as tracked 

pursuant to Section 7.1.1) to the surplus value of creditable 

emission reductions used as offsets during the year (as tracked 

pursuant to Section 7.1.3). 

7.2.2.2 For purposes of the demonstration described in Section 7.2.2, the 

comparison may also include the surplus value of additional 

creditable emission reductions that have not been used as offsets 

and have been banked or have been generated as a result of 

permitting actions. The surplus value of these reductions may 

also be used to remedy any shortfall as specified under Section 

7.4.1.1. 

7.2.2.2.1 The surplus value of these additional credits shall be 

determined as of the date of the issuance of the 

Authority to Construct utilizing such reductions in 

demonstration described in this subsection. 
SJVUAPCD 2201 - 35 9/21/06

7.2.2.2.2 Any such additional emission reductions used in this 

demonstration shall be permanently retired and shall 

not be used to meet any offset or netting requirements 

and shall not be used in future demonstrations 

required by Section 7.0. 

7.2.2.2.3 Additional emission reductions described in Section 

7.2.2.2 shall only be included in the comparison to 

the extent the annual quantity of federal offsets that 

would have been required (as tracked pursuant to 

Section 7.1.1) exceeds the surplus value of creditable 

emission reductions used as offsets (as tracked 

pursuant to Section 7.1.3). 

7.2.2.2.4 Any additional emission reductions described in 

Section 7.2.2.2 that are not included in the 

demonstration required by this subsection, may be 

used in future demonstrations in accordance with this 

subsection. 

7.3 Reporting Schedule 

7.3.1 The report shall cover the period August 20 to August 19 of each year. 

For the Initial report, the District shall track offset requirements for new 

and modified sources for which a complete application for Authority to 

Construct was submitted after August 20, 2001. Additional emission 

reductions, other than banked emission reductions, may be used in the 

equivalency demonstration only if the reduction occurred after August 20, 

2001 

7.3.2 For each reporting period, the APCO shall submit the report and data 

described in Section 7.2 to ARB and the EPA no later than November 20 

of each year. In addition, the APCO shall release the report to the public 

and shall present it to the District Governing Board, each year, at the first 

Board meeting following its submittal to the EPA. 

7.3.3 All documents created and/or used in implementing the requirements of 

Section 7.0 shall be kept and maintained by the APCO for no less than 

five years from the date of their creation and/or use. 

7.4 Remedy for Emission Offset Shortfalls 

7.4.1 Failure to Demonstrate Equivalency in Offset Requirements 

7.4.1.1 If the comparison described in Section 7.2.1 does not show, or 

EPA determines the comparison erroneously shows, that the 
SJVUAPCD 2201 - 36 9/21/06

annual quantity of offsets actually required under this rule (as 

tracked pursuant to Section 7.1.2) equals or exceeds the annual 

quantity of federal offsets that would have been required (as 

tracked pursuant to Section 7.1.1), the District shall retire 

additional creditable emission reductions that have not been used 

as offsets and have been banked or have been generated as a 

result of permitting actions such that the surplus value of these 

emission reductions satisfies any shortfall. 

7.4.1.1.1 The surplus value of these additional credits shall be 

determined as of the date of the issuance of the 

Authority to Construct utilizing such reductions in 

demonstration described in this subsection. 

7.4.1.1.2 Any such additional emission reductions used in this 

demonstration shall be permanently retired and shall 

not be used to meet any offset or netting requirements 

and shall not be used in future demonstrations 

required by Section 7.0. 

7.4.1.2 If the District does not have sufficient additional creditable 

emission reductions to satisfy the shortfall described in 7.4.1.1, 

all ATCs issued after the report deadline for that year shall 

comply with the offset requirements of 40 CFR 51.165, and part 

D of Title I of the CAA, for each pollutant for which there is a 

shortfall, until the applicability and offset requirements of this 

rule are revised to comply with the federal new source review 

requirements and approved into the SIP by EPA. 

7.4.1.3 If the APCO fails to submit a report meeting the requirements of 

Section 7.2.1, all ATC issued after the report deadline and until 

the APCO submits to ARB, EPA and the public a report 

complying with the requirements of Section 7.2.1 shall comply 

with the offset requirements of 40 CFR 51.165, and part D of 

Title I of the CAA. 

7.4.2 Failure to Demonstrate Adequate Creditable Emission Reductions 

7.4.2.1 If the comparison described in Section 7.2.2 does not show, or 

EPA determines the comparison erroneously shows, that the 

surplus value of creditable emission reductions used as offsets 

during the year (as tracked pursuant to Section 7.1.3) combined 

with additional emission reductions as described in Section 

7.2.2.2 equals or exceeds the annual quantity of federal offsets 

that would have been required (as tracked pursuant to Section 

7.1.1), all ATCs issued, for new major sources or federal major 
SJVUAPCD 2201 - 37 9/21/06

modifications, for each pollutant for which there is a shortfall, 

after the report deadline shall ensure that emission reductions 

used to satisfy offset requirements are creditable and that the 

surplus value of those credits is determined at the time of ATC 

issuance. 

7.4.2.2 The requirements of Section 7.4.2.1 shall remain in effect until 

this rule is revised to require offset discounting at time of use and 

such revision is approved into the SIP by EPA, or until a 

subsequent annual report prepared in accordance with Section 

7.2.2 demonstrates that the surplus value of creditable emission 

reductions used as offsets (as tracked pursuant to Section 7.1.3) 

combined with additional emission reductions as described in 

Section 7.2.2.2 equals or exceeds the annual quantity of federal 

offsets that would have been required (as tracked pursuant to 

Section 7.1.1). 

7.4.2.3 If the APCO fails to submit a report meeting the requirements of 

Section 7.2.2, all ATCs issued for new major sources or federal 

major modifications after the report deadline and until the APCO 

submits to ARB, EPA and the public a report complying with the 

requirements of Section 7.2.1 shall ensure that emission 

reductions used to satisfy offset requirements are creditable and 

that the surplus value of those credits is determined at the time of 

ATC issuance. 

7.5 Pre-Baseline ERC Usage Caps from District Attainment Plans 

7.5.1 ERCs that were banked prior to the baseline year for a given Districtadopted and EPA-approved Attainment Plan shall not be used to offset 

emissions increases under the provisions of this rule if the usage of such 

credits during the effective period of the plan exceeds the respective 

pollutant’s Pre-Baseline ERC Usage Cap in the plan. 

7.5.2 Such caps on pre-baseline ERC usage remain in effect until the end of the 

plan’s effective period, or until such time as EPA approves revised caps 

through an Attainment Plan revision process or a Rate of Progress update. 

8.0 Application Shield for Routine Replacement 

8.1 For a Routine Replacement for which an Authority to Construct is required, the 

permitted source may continue to operate under an application shield, provided 

that all of the following conditions are met. 

8.1.1 An application for the Routine Replacement has been submitted within 

seven calendar days of completing the routine replacement. 
SJVUAPCD 2201 - 38 9/21/06

8.1.2 The source operates in compliance with all applicable requirements of the 

federal, state, and District rules and regulations. 

8.2 When the application has been deemed complete by the APCO, the application 

shield shall be made effective retroactive from the date of application submittal 

until the application is either approved or denied, 

8.2.1 The application shield is not applicable if the District's final action is 

delayed due to the failure of the applicant to submit timely information 

requested by the District. The source must also submit additional 

information for any requirements that become applicable after a complete 

application is submitted, but before a PTO is issued. 

8.3 The application shield does not exempt the operator from any applicable 

requirements. 

8.4 The application shield applies only to an application for a Routine Replacement 

and does not authorize any increases to the permitted throughput or emissions due 

to a change in design capacity as part of a Routine Replacement.