SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

September 5, 1996 204-1

 RULE 204 EMISSION REDUCTION CREDITS

Adopted 12-15-92

(Amended 9-5-96)

INDEX

100 GENERAL

101 PURPOSE

102 APPLICABILITY

103 SEVERABILITY

110 EXEMPTION: NOTIFICATION REQUIREMENTS

111 EXEMPTION: REASONABLY AVAILABLE CONTROL TECHNOLOGY ADJUSTMENT

112 EXEMPTION: SHUTDOWNS AND CURTAILMENTS

200 DEFINITIONS

201 ACTUAL EMISSION REDUCTIONS

202 BANKING

203 CERTIFIED

204 EMISSION REDUCTION CREDITS

205 EMISSIONS UNIT

206 ENFORCEABLE

207 EMISSION REDUCTION CREDITS CERTIFICATE

208 NON-PERMITTED EMISSIONS

209 OFFSET

210 PERMANENT

211 PORTABLE EQUIPMENT

212 PROPOSED EMISSIONS

213 QUANTIFIABLE

214 QUARTER/QUARTERLY

215 REAL

216 REASONABLY AVAILABLE CONTROL TECHNOLOGY

217 REGISTER

218 SHUTDOWN

219 TEMPORARY

220 TRANSFER

300 STANDARDS

301 CERTIFICATION

302 REEVALUATION

303 NON-PERMITTED SOURCES

304 SHUTDOWNS

305 USE OF EMISSION REDUCTION CREDITS: BANKING

306 USE OF EMISSION REDUCTION CREDITS: OFFSETS

307 RETURNS: USE OF EMISSION REDUCTION CREDITS FOR TEMPORARY STATIONARY

SOURCES AND PORTABLE EQUIPMENT

308 RETURNS: MODIFICATION OF PERMIT TO OPERATE

400 ADMINISTRATIVE REQUIREMENTS

401 APPLICATION SUBMITTAL TIMELINES

402 COMPLETE APPLICATION

403 PRELIMINARY DECISION

404 PUBLICATION AND PUBLIC COMMENT

405 PUBLIC INSPECTION
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204-2 September 5, 1996

400 ADMINISTRATIVE REQUIREMENTS, cont.

406 CERTIFICATION, FINAL ACTION

407 WITHDRAWAL OF APPLICATION

408 CALCULATION OF EMISSIONS

409 CONVERSION OF EMISSION REDUCTIONS TO EMISSION REDUCTION CREDITS

410 REGISTRATION

411 EMISSION REDUCTION CREDITS REGISTER

412 MORATORIUM

500 MONITORING AND RECORDS (NOT INCLUDED)
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100 GENERAL

101 PURPOSE: To provide an administrative mechanism for quantifying, adjusting and

certifying surplus emission reductions for:

101.1 later use as offsets pursuant to District, state or federal rules or regulations; or

101.2 transfer to other sources as offsets pursuant to Rule 202, NEW SOURCE

REVIEW.

102 APPLICABILITY: This rule shall apply to all emission reductions credits for use by the

stationary source or for transfer to other sources.

103 SEVERABILITY: If a court of competent jurisdiction issues an order that any provision of

this rule is invalid, it is the intent of the Board of Directors of the District that other

provisions of this rule remain in full force and effect to the extent allowed by law.

110 EXEMPTION: NOTIFICATION REQUIREMENTS: The requirements of Sections 404 and

405 relating to notification, publication, and public inspection of Preliminary Decisions

shall not apply if the application is for emission reductions calculated pursuant to Section

408 and the emissions are less than or equal to the following levels:

Pollutant Emissions (lbs/quarter)

Reactive Organic Compounds 7,500

Nitrogen Oxides 7,500

Sulfur Oxides 13,650

PM10 7,500

Carbon Monoxide 22,812

111 EXEMPTION: REASONABLY AVAILABLE CONTROL TECHNOLOGY ADJUSTMENT:

The provisions of Section 408.4 shall not apply to those emission reductions that occurred

prior to February 26, 1991.

112 EXEMPTION: SHUTDOWNS AND CURTAILMENTS : The provisions of Section 201.4a

shall not apply to emission reductions from shutdowns or curtailments provided:

112.1 The shutdowns or curtailment occur after December 31, 1987 and the District is

notified before February 13, 1993 of shutdowns and curtailments which occurred

before December 15, 1992; or

112.2 The shutdowns or curtailments are documented in District permitting actions

pursuant to Rule 202, NEW SOURCE REVIEW; and

112.3 The emissions from the emissions unit to be shutdown or curtailed are included in

the District's 1987 and 1990 emission inventories.

113 EXEMPTION: MOBILE AND TRANSPORTATION SOURCE EMISSION REDUCTION

CREDITS: The provisions of Section 408, shall not apply to emission reduction credits

obtained pursuant to Rule 206, MOBILE AND TRANSPORTATION SOURCE EMISSION

REDUCTION CREDITS.

200 DEFINITIONS: Unless otherwise defined below, the terms used in this rule are defined in Rule

201, GENERAL PERMIT REQUIREMENTS and Rule 202, NEW SOURCE REVIEW.

201 ACTUAL EMISSIONS REDUCTIONS: Reductions of emissions from an emissions unit. 

Actual emission reductions shall be calculated pursuant to Section 408 and meet all of the

following criteria:
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204-4 September 5, 1996

201.1 The emissions reductions shall be real, enforceable, QUANTIFIABLE, and

permanent.

201.2 The emissions reductions shall be surplus emissions reductions in excess of any

emissions reduction which is:

a. Required or encumbered by any laws, rules, regulations, agreements, or

orders, and unless such law by its terms states that the emission

reductions shall be considered surplus; or

b. Attributed to a control measure noticed for workshop in the District, or

proposed or contained in a State Implementation Plan, or Federal

Implementation Plan.

201.3 Emissions reductions attributed to a proposed control measure may be re-eligible

as surplus actual emissions reductions for:

a. Control measures identified in the District Air Quality Attainment Plan or

State Implementation Plan where no rule has been adopted within two

years from the scheduled adoption date, provided, however, the Air

Pollution Control Officer has not extended the scheduled adoption date; 

b. Control measures not identified in the District Air Quality Attainment Plan

or State Implementation Plan where no rule has been adopted and two

years have elapsed beyond the date of the latest public workshop notice;

or

c. Control measures proposed in the District Air Quality Attainment Plan

which are not included into the Plan adopted by the District Board shall

become re-eligible upon adoption of the Plan.

201.4 Source shutdowns and curtailments may not be given emission reduction credit in

the case of non-attainment pollutants if they occurred prior to the date of

application unless:

a. The shutdown or curtailment was claimed by the affected facility as a

credit within 60 days of the surrender of the permit(s), or in the case of

non-permitted sources within 60 days of the curtailment or last date of

operation. In the case of emission reductions associated with the

elimination of agricultural burning, the shutdown or curtailment credit shall

be claimed within 12 months of the last day of operation. A letter of intent

to apply may be provided by the affected facility. Shutdown or

curtailment credits not claimed within 60 days shall pass to the Priority

Reserve Bank as provided in Rule 205, COMMUNITY BANK AND

PRIORITY RESERVE BANK; and

b. The crediting and disbursement of emission reductions from source

shutdowns and curtailments are in accordance with the most current

United States Environmental Protection Agency emissions trading policy

and applicable federal regulations.

202 BANKING: The system of quantifying, adjusting, certifying, recording, and banking

emission reduction credits for future use and transfer. This system shall be called the

emission reduction credits Register .

203 CERTIFIED: Emission reduction credits which have been evaluated under the

requirements of this rule and other applicable District, state and federal rules and

regulations and which have been authorized by the Air Pollution Control Officer.

204 EMISSION REDUCTION CREDITS: Reductions of actual emissions from an emission

unit that are registered with the District in accordance with the requirements of this rule.

205 EMISSIONS UNIT: An identifiable operation or piece of process equipment such as an

article, machine, or other contrivance which controls, emits, may emit, or results in the

emissions of any affected pollutant directly or as fugitive emissions. For the purpose of

calculating emission reduction credits pursuant to this rule, emissions unit shall include

agricultural burning.
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September 5, 1996 204-5

206 ENFORCEABLE: Verifiable and legally binding and containing limitations and conditions

which are enforceable as specified in 40 CFR Part 51.165(a)(1)(xiv) or 40 CFR Part

52.21(b)(17).

207 EMISSION REDUCTION CREDITS CERTIFICATE: A document certifying title to a

defined quantity and type of emission reduction credits issued by the District to the

owner(s) identified on the Certificate.

208 NON-PERMITTED EMISSIONS: Those emissions of an affected pollutant which are not

required to obtain a permit pursuant to Rule 201, GENERAL PERMIT REQUIREMENTS. 

Non-permitted emissions may include emissions from mobile sources, indirect sources,

and exempt equipment.

209 OFFSET: The use of an emission reduction credits to compensate for an emission

increase of an affected pollutant from a new or modified source subject to the

requirements of Rule 202, NEW SOURCE REVIEW.

210 PERMANENT: Continuing without fundamental change for the life of the emission

reduction credits. The sum of all emission reduction credits endures for the life of the

project utilizing that sum of emission reduction credits.

211 PORTABLE EQUIPMENT: Equipment which is periodically relocated and is not operated

more than a total of 180 days at any one stationary source in the District within a

continuous 12 month period.

212 PROPOSED EMISSIONS: Emissions for a calendar quarter based on the same operating

characteristics (e.g. fuel consumption, production level, throughput) as historic actual

emissions for the calendar quarter. Proposed emissions shall be adjusted for applicant

proposed emission reduction strategies (such as throughput reductions, shutdowns, and

reductions in operating hours) which reduce emissions to a level below historic actual

emissions, including emission controls, which are contained as conditions of the Authority

to Construct and Permit to Operate. Such adjustments shall only be made to the extent

that the emission reduction credits generated are allowed by all applicable rules and

regulations and shall be reflected in the Authority to Construct and Permit to Operate

permit conditions. In cases where the modification includes an increase in the allowed

throughput or capacity, proposed emissions shall be the potential to emit pursuant to Rule

202, NEW SOURCE REVIEW, instead of historic actual emissions.

213 QUANTIFIABLE: Ability to estimate emission reductions in terms of their amount and

characteristics. The same method of estimating emissions should generally be used to

quantify the emission levels before and after the reduction.

214 QUARTER/QUARTERLY: Calendar quarter beginning January 1, April 1, July 1, and

October 1.

215 REAL: Actually occurring, implemented, and not artificially devised.

216 REASONABLY AVAILABLE CONTROL TECHNOLOGY: The lowest emission limitation

that a particular source is capable of meeting by the application of emission control

technology that is reasonably available considering technical and economic feasibility. 

The criteria for Reasonably Available Control Technology are specified in "California

Clean Air Act Guidance for the Determination of Reasonably Available Control

Technology and Best Available Retrofit Control Technology", California Air Resources

Board, April 1990 or in the General Preamble to Title I, April 16, 1992 (57 FR 13498), and

subsequent federal notices by the Untied States Environmental Protection Agency,

whichever is more stringent.
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204-6 September 5, 1996

217 REGISTER: The document that records all emission reduction credits deposits,

withdrawals, transfers, and transactions.

218 SHUTDOWN: The permanent cessation of an emissions generating activity.

219 TEMPORARY: For the purpose of this rule, the term temporary shall mean a stationary

source or emissions unit which operates no longer than one consecutive twelve month

period.

220 TRANSFER: The change in ownership of an emission reduction credits from one person

to another.

300 STANDARDS

301 CERTIFICATION: Only actual emission reductions shall be certified as emission

reduction credits. Such actual emission reductions shall meet the following requirements

to be certified as emission reduction credits.

301.1 Apply for emission reduction credits pursuant to Section 402;

301.2 Receive written approval of the Air Pollution Control Officer; and

301.3 If the emission reduction is created from an emission unit where the demand for

the services or product could shift to other similar sources in the District, submittal

of data to document that such reductions will result in District-wide emission

reductions may be required by the Air Pollution Control Officer. Such

documentation must be approved by the Air Pollution Control Officer.

302 REEVALUATION: Actual emission reductions calculated prior to December 15, 1992

shall be reevaluated under the requirements and procedures specified in this rule.

303 NON-PERMITTED SOURCES:

303.1 Except as provided in Section 303.2, non-permitted emissions units or stationary

sources requesting emission reduction credits from such emissions units shall

void any exemption from Rule 201, GENERAL PERMIT REQUIREMENTS. Such

sources shall not operate such emissions unit or stationary source without first

obtaining a permit pursuant to Rule 201, GENERAL PERMIT REQUIREMENTS.

303.2 If state or federal law prohibits the District from requiring an Authority to Construct

or a Permit to Operate pursuant to Rule 201, GENERAL PERMIT 

REQUIREMENTS, the applicant for emission reduction credits shall execute a

legally binding contract with one or more owner(s) or operator(s) of the nonpermittable emissions unit that ensures the sum of all emission reductions will be

provided in accordance with the requirements of this rule, and will continue for the

life of the stationary source using the credits or life of the credits as provided in

the application. Such contract shall be filed with the District and, by its terms, be

enforceable by the Air Pollution Control Officer.

304 SHUTDOWNS:

304.1 Applicants for emission reduction credits due to the shutdown of permitted or nonpermitted emissions units or curtailments shall demonstrate to the satisfaction of

the Air Pollution Control Officer that such equipment will no longer be operated

within the District or that if the emissions unit is operated within the District, the

emissions will be fully offset in accordance with Rule 202, NEW SOURCE

REVIEW. If the emissions unit does not trigger emission offsets in accordance

with Section 302 of Rule 202-NEW SOURCE REVIEW, the applicant shall

provide sufficient emission reduction credits to offset the lesser of the amount of

the emission reduction credits obtained pursuant to this rule or the proposed

emissions from the emissions unit.

304.2 Emission reduction credits from the shutdown of retail dry cleaners and retail

gasoline stations shall be prohibited.
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305 USE OF EMISSION REDUCTION CREDITS: BANKING: Emission reduction credits shall

be banked for current or later use as offsets. The name of the user shall be entered into

the Register for the applicable emission reduction credits. Except as provided in Section

307, 308, and 309, such emission reduction credits may not be returned to the bank

following the start of operation of the stationary source or emissions unit using the

emission reduction credits as offsets.

306 USE OF EMISSION REDUCTION CREDITS: OFFSETS: Emission reduction credits may

be used immediately as offsets or may be donated to air quality benefit. The emission

reduction credits shall be entered into the Register along with the name of the user. 

Except as provided in Sections 307 and 308, such emission reduction credits may not be

returned to the Bank following the start of operation of the stationary source or emissions

unit using the emission reduction credits as offsets.

307 RETURNS: USE OF EMISSION REDUCTION CREDITS FOR TEMPORARY

STATIONARY SOURCES AND PORTABLE EQUIPMENT: Emission reduction credits

used as offsets for temporary stationary sources or emissions units or used as offsets for

portable equipment shall be returned in full to the owner upon verification of shutdown of

the temporary stationary source, emissions unit, or portable equipment by the Air Pollution

Control Officer. Emission reduction credits must then be re-deposited in the Bank and reentered into the Register by the owner, within 60 days.

308 RETURNS: MODIFICATION OF PERMIT TO OPERATE: If the applicant for a Permit to

Operate requests a lowering of the quarterly emission limitation as a result of emissions

testing conducted pursuant to an Authority to Construct demonstrated achievable by such

emissions testing, the difference in emission reduction credits necessary to offset the

emissions unit pursuant to Rule 202, NEW SOURCE REVIEW, shall be re-deposited in

the Bank and re-entered into the Register. The applicant shall submit an Authority to

Construct application for modification of the Permit to Operate to reflect the lower

emissions limitations. The District shall ensure that all emissions reductions are surplus

prior to redepositing into the Community Bank.

309 RETURNS: USE OF ERC'S FOR ELECTRICAL POWER PLANTS: Emission reduction

credits may be used at electrical power plants to offset emission increases resulting from

increased power plant operation needed to compensate for reduced operation at other

electrical power plant(s) within the District, due to emergency breakdown, pursuant to

Rule 602, EMERGENCY BREAKDOWNS, or regularly scheduled maintenance. Emission

reduction credits shall be returned in full to the owner upon verification of return to normal

operation of the using electrical power plant. Emission reduction credits shall be redeposited in the Bank and re-entered into the Register. This Section shall apply only

during the period from November 1 through February 28 or 29, and shall be approved in

writing by the Air Pollution Control Officer prior to use.

400 ADMINISTRATIVE REQUIREMENTS

401 APPLICATION SUBMITTAL TIMELINES:

401.1 An application for emission reduction credits from the shutdown of emissions

units or stationary sources or modification or curtailment of operation shall be

submitted within 60 days after the surrender of the Permit to Operate or for nonpermitted sources the last date of operation of such emissions unit or stationary

source, unless the applicant has requested and received an extension of time, in

writing prior to the end of the 60 day period, from the Air Pollution Control Officer.

 The Air Pollution Control Officer may grant an extension of time not to exceed 90

days. In the case of emission reductions associated with the elimination of

agricultural burning, the shutdown or curtailment credit shall be claimed within 12

months of the last day of operation. Failure to timely request credits shall result in

those credits passing to the Priority Reserve Bank pursuant to Rule 205,

COMMUNITY BANK AND PRIORITY RESERVE BANK.
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204-8 September 5, 1996

402 COMPLETE APPLICATION: 

402.1 The Air Pollution Control Officer shall determine whether the application for

emission reduction credits is complete not later than 30 days after receipt of the

application for emission reduction credits, or after such longer time as both the

applicant and the Air Pollution Control Officer have agreed in writing. If the Air

Pollution Control Officer determines that the application is not complete, the

applicant shall be notified in writing of the decision specifying the information

required. If specified information is not submitted by the applicant within 60 days

from the notification from the District that the application is incomplete, the

application shall be automatically canceled unless the applicant has requested

and received an extension of time, in writing and prior to the end of the 60 day

period, from the Air Pollution Control Officer. The Air Pollution Control Officer

may grant an extension of time not to exceed 90 days. If the application is for a

shutdown or curtailment emission reduction credit, failure to timely provide the

additional information or failure to request an extension of time shall result in

those credits passing to the Priority Reserve Bank pursuant to Rule 205,

COMMUNITY BANK AND PRIORITY RESERVE BANK.

402.2 Upon receipt of any re-submittal of the application, a new 30-day period to

determine completeness shall begin. 

402.3 Completeness of an application or re-submitted application shall be evaluated on

the basis of the information requirements set forth in District regulations (adopted

pursuant to Article 3, 65940 through 65944 of Chapter 4.5 of Division l of Title 7 of

the California Government Code) as they exist on the date on which the

application or re-submitted application was received. The Air Pollution Control

Officer may, during the processing of the application, request an applicant to

clarify, amplify, correct, or otherwise supplement the information submitted in the

application.

402.4 A fee shall be required pursuant to Rule 301, PERMIT FEES - STATIONARY

SOURCE.

402.5 For offsets provided in accordance with Health and Safety Code Sections

41605.5, 42314.5, and 41865 concerning emission reductions from open field

burning, an emission reduction credits application covering the total emission

reductions necessary to offset stationary source emissions may be submitted at

the time of application for an Authority to Construct. Applications for emission

reduction credits from agricultural burning shall not be required if such emissions

are covered by an emission reduction credits obtained by the stationary source

utilizing such emission reductions.

403 PRELIMINARY DECISION: Except as provided in Section 110, following acceptance of

an application as complete, the Air Pollution Control Officer shall perform the evaluations

required to determine compliance with all applicable District rules and regulations and

make a preliminary written decision as to whether the emission reductions should be

certified as an emission reduction credits. The decision shall be supported by a succinct

written analysis. 

404 PUBLICATION AND PUBLIC COMMENT: Except as provided in Section 110, within ten

calendar days following a preliminary decision, the Air Pollution Control Officer shall

publish, in at least one newspaper of general circulation in the District, a notice stating the

preliminary decision of the Air Pollution Control Officer, noting how the pertinent

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

following the date of publication.

405 PUBLIC INSPECTION: Except as provided in Section 110, the Air Pollution Control

Officer shall make available for public inspection at the Air Quality Management District's

office the information submitted by the applicant and the Air Pollution Control Officer's

analysis no later than the date the notice of the preliminary decision is published, pursuant

to Section 404. Information submitted which contains trade secrets shall be handled in

accordance with Section 6254.7 of the California Government Code and relevant sections
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

September 5, 1996 204-9

of the California Administrative Code. Further, all such information shall be transmitted no

later than the date of publication to the California Air Resources Board and the United

States Environmental Protection Agency regional office, and to any party which requests

such information.

406 CERTIFICATION, FINAL ACTION:

406.1 Within 180 days after acceptance of an application as complete, the Air Pollution

Control Officer shall take final action on the application after considering all

written comments. 

406.2 Except as provided in Section 110, the Air Pollution Control Officer shall provide

written notice of the final action to the applicant, the United States Environmental

Protection Agency, and the California Air Resources Board, and shall publish

such notice in a newspaper of general circulation and shall make the notice and

all supporting documents available for public inspection at the Air Quality

Management District's office.

407 WITHDRAWAL OF APPLICATION: Withdrawal of an application for certification of an

emission reduction credits by the applicant shall result in cancellation. 

408 CALCULATION OF EMISSIONS: Calculations performed pursuant to procedures

specified in this Section shall not conflict with the requirements of state and federal laws.

408.1 Actual emission reductions from modifications to, or shutdowns of, existing

emissions units shall be calculated for each calendar quarter by subtracting the

proposed emissions from historical actual emissions. Any positive value shall

qualify for conversion to an emission reduction credit. 

408.2 Credits for particulate matter emission reductions shall be expressed in terms of

PM10.

408.3 Credits for nitrogen oxides, reactive organic compounds, carbon monoxide, sulfur

oxides and PM10 shall be quantified in terms of pounds of pollutants per quarter

for each calendar quarter.

408.4 Actual emission reductions shall be adjusted to at least reflect emission rates

achievable with reasonably available control technology or best available retrofit

control technology whichever is more stringent. The emission reductions from

federally designated attainment pollutants resulting from this adjustment will be

transferred as emission reduction credits to the Priority Reserve Bank pursuant to

Rule 205, COMMUNITY BANK AND PRIORITY RESERVE BANK. This Section

shall not apply to offsets provided in accordance with Health & Safety Code

Sections 41605.5, 42314.5, and 41865 concerning emission reductions from

open field burning.

409 CONVERSION OF EMISSION REDUCTIONS TO EMISSION REDUCTION CREDITS:

Before the Air Pollution Control Officer may issue a certificate of ownership for any

emission reduction credits, including mobile and transportation sources, the emission

reductions calculated in Section 408 or pursuant to Rule 206, MOBILE AND

TRANSPORTATION EMISSION REDUCTION CREDITS, shall be adjusted 1.1 emission

reductions to 1.0 emission reduction credits. Emission reductions resulting from the

emission reductions credits adjustment shall pass as emission reduction credits to the

Priority Reserve Bank pursuant to Rule 205, COMMUNITY BANK AND PRIORITY

RESERVE BANK.

410 REGISTRATION:

410.1 Following certification of emission reduction credits and verification that the

proposed emission reductions have been implemented, the Air Pollution Control

Officer shall issue an original emission reduction credits Certificate to the

owner(s) by certified mail or in person.

The issuance of an emission reduction credits Certificate shall not constitute

evidence of compliance with the rules and regulations of the District, or a
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204-10 September 5, 1996

representation or assurance to the recipient upon which reliance is authorized or

intended that the emission reduction credits represented by the emission

reduction credits Certificate are available from the emission credits Register.

410.2 The emission reduction credits Certificate shall contain:

a. Certificate number;

b. Date of issuance;

c. Street address of site creating the surplus emissions reductions for which

the emission reduction credits Certificate is issued;

d. Signature of the responsible District official;

e. The name of the owner shall be typed on the Certificate and the owner

shall sign the Certificate. If the owner is a public or private business

entity, a person authorized to sign on behalf of the owner shall sign the

Certificate; and

f. Conditions of operation or use, including the life of the credit for emission

reduction credits issued pursuant to Rule 206, MOBILE AND

TRANSPORTATION SOURCE EMISSION REDUCTION CREDITS.

410.3 A copy of each emission reduction credits Certificate issued shall be maintained

in the emission reductions credits Register.

410.4 Multiple owners of emission reduction credits shall be separated according to

agreements, filed with the District, between the owners with one emission

reduction credits Certificate issued to each owner for their respective portion.

410.5 Upon transfer of emission reduction credits between parties, the transferor's

emission reduction credits Certificate, and a copy of a writing, signed by the

transferor, authorizing and memorializing the transfer of the emission reduction

credits to the transferee must be surrendered to the Air Pollution Control Officer

by the transferee, within 30 days of the date of the writing authorizing the transfer

of the emission reduction credits.

Upon receipt and review of said documents the Air Pollution Control Officer shall

issue a new emission reduction credits Certificate in the name of the transferee. 

If fewer than all the transferor's emission reduction credits are transferred, a new

Certificate shall be issued to the transferor showing the remaining emission

reduction credits. The District may refuse to recognize any transfer of emission

reduction credits that does not comply with the requirements of this section.

410.6 The current emission reduction credits Certificate surrendered by the current

registered owner shall be filed in the register and marked with the date of

issuance of the new emission reduction credits Certificate(s), the number of

credits transferred, and the new emission reduction credits Certificate number(s).

 If fewer than all emission reduction credits are transferred, the new balance in

the name of the appropriate owner(s) shall be entered in the register.

410.7 Prior to the issuance of a permit allowing the use of the emission reduction

credits, the current registered owner shall surrender the emission reduction

credits Certificate to the Air Pollution Control Officer. The Certificate surrendered

by the owner shall be filed in the register and marked with the permit number and

street address, and the name of the new owner using the emission reduction

credits. If a balance of emission reduction credits remain, a new emission

reduction credits Certificate shall be issued to the appropriate owner(s) and the

surrendered emission reduction credits Certificate shall be filed in accordance

with the provisions of this rule.

411 EMISSION REDUCTION CREDITS REGISTER:

411.1 The register shall contain the following information for each emission reduction

credits Certificate issued by the Air Pollution Control Officer:

a. Certificate number;

b. Date of issuance;

c. Name and address of the registered owner;

d. Street address site creating the surplus emissions reductions for which

the emission reduction credits Certificate is issued;
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September 5, 1996 204-11

e. Number of emission reduction credits registered; and

f. Status of the emissions reduction credits as donated to air quality benefit

411.2 Upon notice of a transfer of an emission reduction credits Certificate the Air

Pollution Control Officer shall enter the following information in the register:

a. Original emission reduction credits Certificate number;

b. New emission reduction credits Certificate number, or street address and

permit numbers at which the emission reduction credits are being used;

c. Name and address of new owner(s), if any; and

d. Number of emission reduction credits being transferred.

411.3 Upon use of the emission reduction credits for offsets, the following information

shall be entered in the register:

a. All information required in Section 411.2;

b. Date emission reduction credits Certificate was surrendered to the Air

Pollution Control Officer; 

c. Permit numbers to which emission reduction credits are being applied; 

d. Name and address of Emission reduction credits user; 

e. Name, if any, and address of site where emission reduction credits are

being used as offsets; and

f. Number of emission reduction credits being used for offsets.

412 MORATORIUM: Except as provided in Section 201.2, after the issuance of an emission

reduction credits Certificate, subsequent changes in regulations, except Regulation 2, 

shall not reduce or eliminate the deposit. If the District Board of Directors determines,

after review of periodic reports prepared by the Air Pollution Control Officer, that additional

emission reductions are necessary, a moratorium on withdrawals may be imposed. Prior

to imposing a moratorium, the Air Pollution Control Officer shall provide a notice of the

date of the meeting of the District Board of Directors to consider issuance of a moratorium

to owners of emission reduction credits and other interested parties. The moratorium

shall be lifted upon determination that additional emission reductions are not necessary by

the District Board of Directors.
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204-12 September 5, 1996

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SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

September 25, 2003 205-1 

RULE 205 COMMUNITY BANK AND PRIORITY RESERVE BANK 

Adopted 11-03-94 

(Amended 8-1-96, 9-5-96, 3-6-97, 8-7-97, 7-23-98, 4-27-00, 8-24-00, 8-23-01, 9-25-03) 

INDEX 

100 GENERAL

 101 PURPOSE 

 102 APPLICABLE REQUIREMENTS 

103 SEVERABILITY 

110 EXEMPTION – SMALL, SHORT-TERM LOANS 

200 DEFINITIONS 

 201 ADJUSTMENT 

202 COMMUNITY BANK 

203 ENVIRONMENTAL CLEANUP OPERATION 

204 ESSENTIAL PUBLIC SERVICES ACCOUNT 

205 LOCAL REUSE AUTHORITY 

 206 MAJOR STATIONARY SOURCE 

207 MILITARY BASE 

 208 MILITARY BASE ACCOUNT 

209 POWER PLANT 

210 PRIORITY RESERVE BANK 

 211 REUSE 

212 SMALL BUSINESS 

213 STATIONARY SOURCE 

 214 SURPLUS EMISSION REDUCTION CREDITS 

300 STANDARDS

 301 CRITERIA 

 302 ESSENTIAL PUBLIC SERVICES ACCOUNT 

 303 MILITARY BASE ACCOUNT 

 304 COMMUNITY BANK 

 305 ALLOCATION 

 306 TRANSFER BETWEEN BANKS 

 307 DISBURSEMENT 

 308 ESSENTIAL PUBLIC SERVICES ACCOUNT PRIORITIZATION 

309 MILITARY BASE ACCOUNT APPROVAL PROCESS 

310 COMMUNITY BANK ACCOUNT APPROVAL PROCESS 

 311 COMMUNITY BANK LOAN PRIORITIZATION 

 312 LOAN RATES 

 313 COMMUNITY BANK OR PRIORITY RESERVE BANK RENEWAL FEE 

 314 RESERVING ESSENTIAL PUBLIC SERVICES ACCOUNT CREDITS 

 315 TRANSFERS 

 316 RETURNS 

 317 SUSPENSION 

 318 COMMUNITY BANK REVENUE DISBURSEMENT 

400 ADMINISTRATIVE REQUIREMENTS

 401 CALCULATION PROCEDURES 

 402 EMISSION REDUCTION CREDITS 

 403 NOTIFICATION OF COMMUNITY BANK OR PRIORITY RESERVE BANK RENEWAL FEE 

 404 NOTIFICATION OF INITIAL LOAN RATE FEE 

405 LOAN INITIATION DATE 

500 MONITORING AND RECORDS 

501 RECORD KEEPING
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205-2 September 25, 2003 

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SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

September 25, 2003 205-3 

100 GENERAL

 101 PURPOSE: The Community Bank and the Priority Reserve Bank are established within the 

emission reduction Register pursuant to Rule 204, EMISSION REDUCTION CREDITS. The 

Priority Reserve Bank is established for the purpose of providing loans of emission reduction 

credits for use as offsets for new or modified stationary sources that are essential public 

services, or use or reuse of a military base. The Priority Reserve Bank also may be used for 

the purpose of providing loans of emission reduction credits to comply with rules specified in 

Section 102.4, a conformity determination pursuant to Rule 104, General Conformity or 

mitigation under the California Environmental Quality Act (CEQA). The Community Bank is 

established for the purpose of providing loans of emission reduction credits to comply with 

specified prohibitory rules, New Source Review, a conformity determination pursuant to Rule 

104, General Conformity or for use as mitigation under either CEQA or a functionally 

equivalent program pursuant to Public Resources Code Section 21080.5. 

 102 APPLICABLE REQUIREMENTS:

 102.1 Disbursement of emission reduction credit loans from the Essential Public Services 

Account shall be available, to the extent allowed pursuant to Section 305, to publicly 

owned or non-profit essential public services. Disbursement of emission reduction 

credit loans shall not be provided for on-site power generation or for emissions units 

not necessary to provide or maintain public health and safety. 

 102.2 Disbursement of emission reduction credit loans from the Essential Public Services 

Account for nitrogen oxide credits shall not be provided for those emissions resulting 

from a landfill gas control or processing system which are in excess of those 

emissions which would have resulted from a landfill gas control or processing system 

with a nitrogen oxide emission rate of 0.06 lb/mmBTU. 

 102.3 Disbursement of emission reduction credit loans from the Military Base Account shall 

be available, to the extent allowed pursuant to Section 305, for use or reuse at a 

military base. 

 102.4 Disbursement of emission reduction credit loans from the Community Bank or 

Priority Reserve Bank can be used for compliance with the following prohibitory 

rules: 

 a. Rule 411, BOILER NOX, 

 b. Rule 450, GRAPHIC ARTS OPERATIONS for compliance timelines that are 

in effect after March 6, 1997, 

 c. Rule 451, SURFACE COATING OF MISCELLANEOUS METAL PARTS 

AND PRODUCTS for compliance timelines that are in effect after March 6, 

1997, 

 d. Rule 452, CAN COATING, 

 e. Rule 454, DEGREASING OPERATIONS 

 f. Rule 456, AEROSPACE ASSEMBLY AND COMPONENT COATING 

OPERATIONS, 

 g. Rule 459, AUTOMOTIVE, TRUCK AND HEAVY EQUIPMENT 

REFINISHING OPERATIONS, 

 h. Rule 460, ADHESIVES, 

 i. Rule 463, WOOD PRODUCTS COATINGS, 

 j. Rule 465, POLYESTER RESIN OPERATIONS, 

 k. Rule 464, ORGANIC CHEMICAL MANUFACTURING OPERATIONS, 

Section 305 and Section 306, for wastewater liquid transfer, or 

 i. Rule 466, SOLVENT CLEANING 

102.5 Disbursement of emission reduction credit loans from the Community Bank or 

Priority Reserve Bank shall not be used for the following: 

 a. Compliance with Best Available Control Technology requirements 

pursuant to Rule 202, NEW SOURCE REVIEW; 

 b. Compliance with Maximum Available Control Technology standards as 

described in 40 CFR Part 63; 

 c. Compliance with National Emissions Standards for Hazardous Air Pollutants 

as described in 40 CFR Part 61; 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

205-4 September 25, 2003 

d. Compliance with New Source Performance Standards as described in 40 

CFR Part 60; 

e. Compliance with toxic air contaminant regulations as described in Health 

and Safety Code Section 39665 and seq. 

f. To avoid penalties or enforcement actions by obtaining credits after the fact 

of noncompliance; 

 g. For netting out of NSR or PSD requirements pursuant to Rule 202, NEW 

SOURCE REVIEW and Rule 203, PREVENTION OF SIGNIFICANT 

DETERIORATION; or 

h. To meet requirements for motor vehicle emissions standards, reformulated 

gasoline, clean fueled fleets, employer trip reduction programs, or vehicle 

inspection and maintenance programs as described in Title II of the Clean 

Air Act and Division 26, Part 5 of the Health and Safety Code. 

 102.6 Disbursement of emission reduction credit loans from the Community Bank shall not 

be used for essential public services, or use or reuse of a military base. 

 [Note: Rules 464, 460, 454, and 466 have not been yet approved by the United States 

Environmental Protection Agency into the State Implementation Plan (SIP). Approval of this 

rule into the SIP does not constitute automatic SIP approval of these rules.] 

103 SEVERABILITY: If a court of competent jurisdiction issues an order that any provision of this 

rule is invalid, it is the intent of the Board of Directors of the District that other provisions of 

this rule remain in full force and affect, to the extent allowed by law. 

110 EXEMPTION – SMALL, SHORT-TERM LOANS: The requirements of Sections 310.1 

through 310.5 shall not apply to loan requests less than or equal to 900 pounds per quarter 

per stationary source with a term equal to five years or less. These loans may be approved 

by the Air Pollution Control Officer. 

200 DEFINITIONS: Unless otherwise defined below, the terms used in this rule are defined in Rule 202, 

NEW SOURCE REVIEW, and Rule 204, EMISSIONS REDUCTION CREDITS. 

 201 ADJUSTMENT: Adjustment for purposes of this rule includes the emission reductions 

resulting from the conversion of emission reductions to emission reduction credits, pursuant 

to Rule 204, EMISSION REDUCTION CREDITS. 

202 COMMUNITY BANK: A depository of certified emission reduction credits available to public 

and private entities for compliance with Rules and Regulations specified in Section 102.4, or 

offset requirements in Rule 202, NEW SOURCE REVIEW, for use for a conformity 

determination pursuant to Rule 104, General Conformity or for use as mitigation under the 

California Environmental Quality Act or a functionally equivalent program through the loan of 

emission reduction credits. 

 203 ENVIRONMENTAL CLEANUP OPERATION: Operation to remove environmental 

contaminants from soil or groundwater which has been mandated by the Regional Water 

Quality Control Board, the Department of Toxic Substances Control, the U.S. Environmental 

Protection Agency or any other local, state or federal law, rule or regulation. 

 204 ESSENTIAL PUBLIC SERVICES ACCOUNT: A depository of certified emission reduction 

credits for loan to applicable essential public services for use as offsets pursuant to Rule 202, 

NEW SOURCE REVIEW, for use for a conformity determination pursuant to Rule 104, 

GENERAL CONFORMITY, for use as mitigation under the California Environmental Quality 

Act or a functionally equivalent program, or for use for compliance with rules specified in 

Section 102.4. Except as excluded in Section 102.1 and 102.2, the following sources shall 

be considered essential public services. 

 204.1 Sewage treatment operations which are publicly owned and operated consistent with 

the approved General Plan. 

 204.2 Prison, jail, correctional facility. 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

September 25, 2003 205-5 

 204.3 Police or fire fighting facility. 

 204.4 School or hospital. 

 204.5 Solid waste management systems, including landfill gas control or processing 

systems. 

 204.6 Water delivery operations. 

204.7 Environmental cleanup operations. 

205 LOCAL REUSE AUTHORITY: The local community entity established by state or local 

government as the entity responsible for creating the redevelopment plan for a military base 

and for directing implementation of the plan. 

206 MAJOR STATIONARY SOURCE: See definition under Rule 202, NEW SOURCE REVIEW.

207 MILITARY BASE: Any United States military facility within the District including those closed 

or downsized pursuant to federal law. 

208 MILITARY BASE ACCOUNT: A depository of certified emission reduction credits for loan to 

applicable sources for use as an offset pursuant to Rule 202, NEW SOURCE REVIEW, for 

use for a conformity determination pursuant to Rule 104, GENERAL CONFORMITY, for use 

as mitigation under the California Environmental Quality Act or a functionally equivalent 

program, or for use for compliance with rules specified in Section 102.4. 

209 POWER PLANT: An electric power generation unit using natural gas or renewable fuels, 

including ancillary equipment, comprised of one or a combination of turbines, boilers, 

furnaces, engines or other fuel burning equipment, the simultaneous operation of which is 

required for the production of useful electric power for normal operations. 

 210 PRIORITY RESERVE BANK: A depository of certified emission reduction credits in the 

Essential Public Services Account and the Military Base Account for loan to applicable 

sources for use as offsets pursuant to Rule 202, NEW SOURCE REVIEW, for use for a 

conformity determination pursuant to Rule 104, GENERAL CONFORMITY, for use as 

mitigation under the California Environmental Quality Act or a functionally equivalent 

program, or for use for compliance with Rules and Regulations specified in Section 102.4. 

 211 REUSE: The creation and/or support of new and existing businesses, works, jobs, or 

revenue-generating activities at a military base. 

 212 SMALL BUSINESS: A business entity that is independently owned and operated, does not 

have more than the equivalent of ten full-time employees and does not have more than $2 

million in annual gross receipts. 

 213 STATIONARY SOURCE: See definition under Rule 202, NEW SOURCE REVIEW. 

214 SURPLUS EMISSION REDUCTION CREDITS: Emission reductions in excess of any 

emissions reductions which are: 

 214.1 required or encumbered by any laws, rules, regulations, agreements, or orders, and 

unless such law by its terms states that the emission reduction shall be considered 

surplus, or 

 214.2 attributed to a control measure noticed for workshop in the District, or proposed or 

contained in a State Implementation Plan, or 

 214.3 proposed or contained as mid-term measures in the District Air Quality Attainment 

Plan for attaining the annual reductions required by the California Clean Air Act. 

300 STANDARDS

 301 CRITERIA: The Community Bank and Priority Reserve Bank shall be supported by actual 

emission reductions which are certified pursuant to Rule 204, EMISSION REDUCTION 

CREDITS. 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

205-6 September 25, 2003 

302 ESSENTIAL PUBLIC SERVICES ACCOUNT: Support for the Essential Public Services 

Account shall include, but not be limited to: 

302.1 The adjustment of all emission reductions as provided in Rule 204, EMISSION 

REDUCTION CREDITS and Rule 206, MOBILE AND TRANSPORTATION 

SOURCE EMISSION REDUCTION CREDITS except for the adjustment of emission 

reductions from a military bases or from emission reductions realized pursuant to 

Section 318. 

 302.2 Shutdowns or modifications of stationary sources or emission units not claimed for 

emission reduction credits by the facility within the specified timeframes as provided 

in Rule 204, EMISSION REDUCTION CREDITS except for shutdowns from a 

military base. 

 302.3 In addition, unused emission reduction credits from a previous calendar quarter may 

be transferred from the Military Base Account to the Essential Public Services 

Account if the Board of Directors of the District, with the recommendation of the Air 

Pollution Control Officer, determines there is a need by sources described in Section 

204. 

 303 MILITARY BASE ACCOUNT: Support for the Military Base Account shall include, but not be 

limited to: 

 303.1 The adjustment of emission reductions from a military base as provided in Rule 204, 

EMISSION REDUCTION CREDITS and Rule 206, MOBILE AND 

TRANSPORTATION SOURCE EMISSION REDUCTION CREDITS. 

 303.2 Shutdowns of emission units not claimed for emission reduction credits by a military 

base within the specified timeframes as provided in Rule 204, EMISSION 

REDUCTION CREDITS, except for sixty percent of the reactive organic compound 

and nitrogen oxides emission reduction credits from the shutdown of B-52 Bomber 

aircraft flight operations at Mather Air Force Base. 

 303.3 In addition, unused emission reduction credits from a previous calendar quarter, may 

be transferred from the Essential Public Services Account to the Military Base 

Account if the Board of Directors of the District, with the recommendation of the Air 

Pollution Control Officer, determines there is a need for the purposes described in 

Section 211. 

 304 COMMUNITY BANK: Support for the Community Bank shall include, but not be limited to: 

 304.1 Initially, sixty percent of the reactive organic compound and nitrogen oxides emission 

reductions realized by the shutdown of B-52 Bomber aircraft flight operations at 

Mather Air Force Base. 

 304.2 Emission reduction credits realized through activities initiated by disbursement of 

bank proceeds to innovative emission reduction programs selected by the District 

Board of Directors pursuant to Section 318. These emission reductions shall be 

certified pursuant to Rule 204, EMISSION REDUCTION CREDITS. 

 305 ALLOCATION: 

 305.1 PRIORITY RESERVE BANK: Emission reduction credits shall be made available on 

the first Wednesday of each calendar quarter. The amount available for loan funding 

from the Priority Reserve Bank shall never exceed the emission reduction credits in 

the Essential Public Services Account and the Military Base Account. 

 305.2 COMMUNITY BANK: Credits shall be allocated as follows: 

 a. There will be an initial total of 300 tons per year of reactive organic 

compound and 45.6 tons per year of nitrogen oxides credit available for loan 

funding in the Community Bank upon adoption of this rule. The credit shall 

be allocated as follows: 

 1. Initially a total of 150 tons per year of reactive organic compound 

and 45.6 tons per year of nitrogen oxides credits shall be available 

for withdrawal. The reactive organic compound credits shall be 

allocated on a quarterly basis as 37,500 pounds per quarter through 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

September 25, 2003 205-7 

September 1998. The nitrogen oxides credits shall be allocated on 

a quarterly basis as 11,400 pounds per quarter through September 

1998. Allocated emissions reduction credits shall be made 

available on the first Wednesday of each calendar quarter. The 

District Board of Directors, with the recommendation of the Air 

Pollution Control Officer, may adjust the quarterly allocation to not 

exceed 150 tons per year of reactive organic compounds and 45.6 

tons per year of nitrogen oxides through September 1998. 

 2. Beginning October 1998 through September 2002, the additional 

150 tons per year of reactive organic compound emissions shall be 

allocated on a quarterly basis as 18,750 pounds per quarter. 

Allocated emissions reduction credits shall be made available on 

the first Wednesday of each calendar quarter. 

 b. Emission reduction credits shall be made available on the first Wednesday 

of each calendar quarter. 

 306 TRANSFER BETWEEN BANKS: Unused emission reduction credits from a previous 

calendar quarter may be transferred between the Priority Reserve Bank and the Community 

Bank if the District Board of Directors, with the recommendation of the Air Pollution Control 

Officer, determines there is a need by sources requesting loans of emission credits from the 

Priority Reserve Bank or the Community Bank. 

307 DISBURSEMENT: A loan of emission reduction credits from the Priority Reserve Bank or the 

Community Bank shall be granted with the issuance of a final action on an Authority to 

Construct or the issuance of a Permit to Operate subsequent to a Change of Ownership 

application, or upon the issuance of a preliminary determination of compliance, as described 

in the California Energy Commission’s power plant provisions pursuant to Rule 201, 

GENERAL PERMIT REQUIREMENTS and/or Rule 202, NEW SOURCE REVIEW or Rule 

107, ALTERNATIVE COMPLIANCE, or for use for a conformity determination pursuant to 

Rule 104, GENERAL CONFORMITY or, for use as a mitigation measure under CEQA, with 

the issuance of a final environmental document, and upon payment of a fee and the loan rate 

pursuant to Section 312 and 404. 

307.1 The total amount of emission reduction credits from all loans from the Military Base 

Account and the Community Bank Account shall be limited to a maximum of 50 tons 

per year of nitrogen oxides and 110 tons per year of reactive organic compounds per 

stationary source, including active past loans to that source. No more than one 

quarter of the total annual limit may be loaned to the source in any quarter, or 

apportioned equally on a less frequent basis, if credits are required to be provided on 

a less frequent basis pursuant to Rule 202, NEW SOURCE REVIEW. No limit shall 

be placed on the amount of carbon monoxide, particulate matter, or sulfur oxides that 

can be loaned. 

 307.2 Legal Title to the emission reduction credits borrowed from the Priority Reserve Bank 

or the Community Bank remains with the District. A certificate of ownership will not 

be issued for emission reductions loaned from the Priority Reserve Bank or the 

Community Bank. 

 307.3 A borrower of emission reductions from the Priority Reserve Bank or the Community 

Bank will be issued an emission reduction credits Register account number and the 

borrowed emission reduction credits will be credited to that account. 

 307.4 Upon issuance of a final action on an Authority to Construct or the issuance of a 

Permit to Operate subsequent to a Change of Ownership application, the emission 

reduction credits in the borrowers account will be credited to the permit, except as 

provided in Sections 309 and 310. 

 307.5 The District will enter the permit number, the date, and the amount of emission 

reductions credited from the borrowers account on the Authority to Construct and/or 

Permit to Operate and in the borrowers account history. 

307.6 Disbursement of emission reduction credits from source shutdowns and curtailments 

shall be in accordance with the most current United States Environmental Protection 

Agency Emissions Trading Policy. 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

205-8 September 25, 2003 

307.7 The Authority to Construct or Permit to Operate shall include a condition stating that 

the borrowed emission reduction credits are valid only if the stationary source 

operates in a manner consistent with both the requirements of the rule and the facts 

presented to the Board of Directors in considering requests as specified in Sections 

309 and 310. 

[Note: EPA has determined that, based on Section 403(f) of the Federal Clean Air Act, the 

emission reduction credits borrowed from the Priority Reserve Bank or the Community Bank 

do not constitute property rights.] 

 308 ESSENTIAL PUBLIC SERVICES ACCOUNT PRIORITIZATION: Priority shall be given to 

applications to the Essential Public Services Account with the earliest date an application for 

an Authority to Construct is deemed complete. The Board of Directors of the District may 

determine that a specific project shall be given priority for access to the Essential Public 

Services Account based on public health or safety, regardless of the application submittal 

date. 

309 MILITARY BASE ACCOUNT APPROVAL PROCESS: A loan of emission reduction credits 

from the Military Base Account must be approved by the District Board of Directors. Only 

those loans associated with a final action as described in Section 307 will be eligible for loans 

from the Military Base Account. Only the local reuse authority for a closing military base 

within the District, or any other person proposing a reuse at a military base, or a federal 

government entity operating a military base within the District may apply for use of credits 

from the Military Base Account. Disbursement of the loans will be on the first Wednesday of 

the calendar quarter pursuant to the following: 

309.1 Priority shall be given to applications to the Military Base Account as determined by 

the Board of Directors of the District, with the recommendation of the Air Pollution 

Control Officer. Staff will present all of the qualifying applications to the Board at the 

meeting just prior to the beginning of the quarter for which loans are requested 

309.2 The Board shall consider the extent to which cleaner innovative technologies have 

been used to minimize the credits needed, among other factors. 

309.3 The Board may deny any application if it determines that the denial is in the best 

interest of the Sacramento Federal 1-hour Nonattainment Area. 

309.4 If the Board does not take action on one or more of the requests presented by staff 

prior to the quarter for which loans are to be approved or disapproved then the 

pending requests will be heard at the next scheduled Board meeting. The loans will 

be effective on the first day of the calendar quarter that the Board action takes place. 

309.5 The Board of Directors may conditionally grant loans to protect the health of the bank 

or to promote cleaner, innovative technology. 

310 COMMUNITY BANK ACCOUNT APPROVAL PROCESS: Only those loan applications 

associated with a final action as described in Section 307 will be eligible for loans from the 

Community Bank Account. To qualify for disbursement, the final action document must be 

issued by the first Wednesday of the month prior to the quarter for which the loans are to be 

approved or disapproved. Disbursement of the loans will be on the first Wednesday of the 

calendar quarter pursuant to the following: 

310.1 All loan applications to the Community Bank Account must be approved by the 

District Board of Directors prior to disbursement. Staff will present all of the qualifying 

applications to the Board at the meeting just prior to the beginning of the quarter for 

which loans are requested. 

310.2 The Board shall consider the extent to which cleaner innovative technologies have 

been used to minimize the credits needed, among other factors. 

310.3 The Board may deny any application if it determines that the denial is in the best 

interest of the Sacramento Federal 1-hour Ozone Nonattainment Area. 

310.4 If the Board does not take action on one of more of the requests presented by staff 

prior to the quarter for which loans are to be approved or disapproved then the 

pending requests will be heard at the next scheduled Board meeting. The loans will 

be effective on the first day of the calendar quarter that the Board action takes place. 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

September 25, 2003 205-9 

310.5 The Board of Directors may conditionally grant loans to protect the health of the bank 

or to promote cleaner, innovative technology. 

 311 COMMUNITY BANK LOAN PRIORITIZATION: Should the total of loan requests exceed the 

quarterly funding cap, all loan applications in the funding cycle shall be prioritized according 

to the prioritization scheme outlined below.

 311.1 FIRST PRIORITY LOAN RANK: Applications for loans to meet requirements of 

prohibitory rules identified in section 102.1 shall be placed in the first priority ranking 

for funding. Applications within the first priority ranking shall be further prioritized as 

follows: 

 a. SMALL BUSINESS: Applications submitted by small business entities shall 

be funded first. 

 b. SMALL LOANS: Applications in the first priority ranking shall be further 

prioritized according to total emission credits requested, ranked from smaller 

amounts to larger amounts. 

 311.2 SECOND PRIORITY LOAN RANK: Applications for loans to meet offset 

requirements of Rule 202, NEW SOURCE REVIEW, shall be placed in the second 

priority ranking. Applications within the second priority ranking shall be further 

prioritized as follows: 

 a. SMALL BUSINESS: Applications submitted by small business entities shall 

be funded first. 

 b. SMALL LOANS: Applications in the second priority ranking shall be further 

prioritized according to total emission credits requested, ranked from smaller 

amounts to larger amounts. 

 311.3 THIRD PRIORITY LOAN RANK: Applications for loans to satisfy conformity 

pursuant to Rule 104, General Conformity or CEQA mitigation requirements shall be 

placed in the third priority ranking. Applications in the third priority ranking shall be 

further prioritized according to total emission credits requested, ranked from smaller 

amounts to larger amounts. 

 312 LOAN RATES

312.1 BASIC RATE: The base loan rate shall be based on the size of the facility applying 

for loans. All sources applying for loans shall pay the determined base loan rate plus 

an administrative fee for processing the loan. The base rate for each type of source 

shall be established in March of each year and if there have been no representative 

offset transactions in a given year, then the rate shall be based on the most recent 

continuous two year period where there are representative offset transactions. Base 

loan rates are determined by the Board of Directors of the District with the 

recommendation of the Air Pollution Control Officer by selecting one of the following 

options: 

a. NON-MAJOR STATIONARY SOURCES: 

1. The base loan rate shall be the two-year weighted average market 

rate of credits sold for each pollutant within the Sacramento Federal 

Non-Attainment Area for Ozone, or 

2. The base loan rate shall be the two-year weighted average market 

rate of credits sold for each pollutant within Sacramento County or 

used by a source located in Sacramento County, or 

3. The base loan rate shall be equal to the highest priced credit 

transaction for each pollutant sold in the previous two years in the 

Sacramento Federal Non-Attainment Area for Ozone. 

b. MAJOR STATIONARY SOURCES: 

1. The base loan rate shall be the two-year weighted average market 

rate of credits sold for each pollutant within Sacramento County or 

used by a source located in Sacramento County, or 

2. The base loan rate shall be equal to the highest priced credit 

transaction for each pollutant sold in the previous two years in the 

State of California, or 

3. The base loan rate shall be equal to the total annual cost of credits 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

205-10 September 25, 2003 

from the California Air Resources Board emission reduction credit 

bank. 

 312.2 BASIC RATE TERM: The base rate term shall be for 30 years. 

 312.3 SHORT TERM RATE: Rates for loans with a term of 30 years or less shall be 

calculated as follows: 

Base Rate 

30 

X Loan Term 

313 COMMUNITY BANK OR PRIORITY RESERVE BANK RENEWAL FEE: Any person who 

requests to withdraw emission reduction credits pursuant to this rule shall pay an annual 

renewal fee to administer the rule. The annual renewal fee assessed shall be $903. In 

March of each year, the Air Pollution Control Officer shall submit to the District’s Board of 

Directors cost analysis which contains a recommendation for the new annual renewal fee. 

The District’s Board of Directors shall review the cost analysis and shall set the new fee 

amount. 

 314 RESERVING ESSENTIAL PUBLIC SERVICES ACCOUNT CREDITS: Sources may, if the 

Air Pollution Control Officer determines a need, reserve Essential Public Services Account 

credits for up to three years to allow multi-year projects to be planned. The sum of such 

credits shall amount to no more than 25 percent of each calendar quarter allocation for the 

Essential Public Services Account for those three years. 

 315 TRANSFERS: The loan of Priority Reserve Bank or the Community Bank credits shall not be 

transferable, whether by operation of law or otherwise, from one person to another, from one 

location to another, or from one emissions unit to another. 

 316 RETURNS: The emission reductions calculated pursuant to Section 403 of Rule 107, 

ALTERNATIVE COMPLIANCE or pursuant to Section 302 of Rule 202, NEW SOURCE 

REVIEW for the emissions units using emission reduction credits from the Community Bank 

or Priority Reserve Bank shall be returned to the Essential Public Services, Military Base 

Account or the Community Bank under any of the following conditions as long as at the time 

of return the original emission reduction credits can be determined to be surplus emission 

reduction credits: 

 316.1 Construction is not started within two years of date of granting of the loan. 

 316.2 Revocation or voluntary surrender of Authority to Construct or Permit to Operate. 

 316.3 Emission reduction credits are issued to the stationary source pursuant to Rule 204, 

EMISSION REDUCTION CREDITS. 

317 SUSPENSION: Except as provided in Section 316, a loan of emission reduction credits shall 

exist for the life of the emissions unit using such credits or for the loan life, whichever is 

shorter. 

 317.1 If the total emission reduction credits available for loan for any specific pollutant from 

the Community Bank and Priority Reserve Bank reaches or falls below the following 

amounts then a suspension on all loans shall be imposed for the specific pollutant. 

Pollutant Total Amount of Emission 

Reduction Credit Available in 

Community Bank and Priority 

Reserve Bank 

Tons/year 

Reactive organic compounds 41.0 

Nitrogen oxides 40.0 

Carbon monoxide 160.0 

PM10 4.0 

Sulfur oxides 2.0 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

September 25, 2003 205-11 

As soon as possible but no later than 60 days from a suspension being imposed 

pursuant to Section 317.1, the Air Pollution Control Officer shall present the District 

Board of Directors with options on continuing or lifting the suspension. The Air 

Pollution Control Officer shall publish in at least one newspaper of general circulation 

in the District a notice of the date of the meeting of the District Board of Directors to 

consider what further action should be taken. The notice shall be published at least 

30 days, when possible, but not less than 7 days prior to the meeting. The 

suspension shall remain in place until lifted or modified by the District Board of 

Directors. 

 317.2 Notwithstanding Section 317.1, if the District Board of Directors determines that 

additional emission reductions within the District are necessary, a suspension on 

loans may be imposed. Prior to the Board of Directors issuing a suspension, the Air 

Pollution Control Officer shall publish in at least one newspaper of general circulation 

in the District a notice of the date of the meeting of the District Board of Directors to 

consider such actions. The notice shall be published at least 30 days prior to the 

meeting. The suspension shall be lifted upon determination that additional emission 

reductions within the District are not necessary by the District Board of Directors. 

 317.3 Starting with the 1999 emission inventory and every three years after that the District 

shall prepare a summary of District control measures listed in the table in Section 

317.5(a) included in the Sacramento Area Regional Ozone Attainment Plan. 

 317.4 The summary shall include the actual emission reductions realized for each control 

strategy and the total reactive organic compound emission reductions realized for the 

control measures. The summary shall be completed by July 1, 2000 and every three 

years thereafter. 

 317.5 A specific suspension shall be imposed on the loaning of the B-52 credits that went 

into initially funding the Community Bank, pursuant to Section 304.1, if the following 

condition occurs: 

a. If the actual emission reductions realized is less than the total emission 

reductions in the following table: 

ROG CONTROL 

MEASURE 

SACRAMENTO OBLIGATION 

(TONS/DAY) 

1999 2002 2005 

Adhesives 0.7 0.8 0.9 

Automotive Refinishing 1.3 1.6 2.0 

Bakeries - - - 

Graphic Arts - - - 

Landfill Gas 1.0 1.0 1.0 

SOCMI 1.5 1.6 1.7 

Surface Prep and Cleanup 2.4 2.7 2.9 

Wood Products .3 .3 .3 

Underground Storage 

Tanks 

0.1 0.1 0.1 

Fugitive Emissions - - - 

Aerospace Coatings - - - 

Can & Coil Coatings - - - 

Miscellaneous Metal Parts 

and Products Coatings 

- - - 

TCMs/Land Use - - 1 

Plan Total 7.3 8.1 9.9 

 B-52's 0.6 0.8 0.8 

Total 7.9 8.9 10.7 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

205-12 September 25, 2003 

 b. The suspension resulting from the condition in Section 317.5 will be lifted if 

and when the total emission reductions in the table Section 317.5(a) are 

shown to have occurred. 

 318 COMMUNITY BANK REVENUE DISBURSEMENT: Net proceeds from emission reduction 

credit loans from the Community Bank and Priority Reserve Bank shall only be used to fund 

innovative emission reduction programs. Emission reductions realized from programs so 

funded shall be deposited in the Community Bank. 

318.1 TARGET PROGRAMS: By April of each year the District Board of Directors, with a 

recommendation from the Air Pollution Control Officer, based on the availability of 

proceeds from Community and Priority Reserve Bank revenues, shall identify 

preferred emission credit generating programs for funding. 

 318.2 REQUEST FOR PROPOSALS: By June of each year, based on the availability of 

proceeds from Community and Priority Reserve Bank revenues, staff shall prepare 

and publish a request for proposal(s) (RFP) to solicit for the development or 

continuation of innovative emission reduction programs. If the available proceeds 

from Community and Priority Reserve Bank revenues is less than $50,000, then the 

proceeds may be made available for use in the following year RFP cycle. 

 318.3 RANKING PROPOSALS: The selection criteria shall include, but not be limited to, 

cost, emission reduction potential, technical feasibility, and confidence. At the close 

of each RFP solicitation, staff will evaluate all proposals received and reject 

proposals not meeting the minimum selection criteria. 

 318.4 SELECTION OF PROGRAMS FOR FUNDING: By October of each year the Air 

Pollution Control Officer will recommend to the Board of Directors, based on the 

selection criteria identified in Section 318.3 above, a ranking of emission reduction 

programs selected for funding. The Board of Directors shall accept or reject the list 

in toto. 

 318.5 EMERGENCY SELECTION OF PROGRAMS FOR FUNDING: Notwithstanding 

Sections 318.1, 318.2, 318.3 and 318.4, the District Board of Directors, with a 

recommendation from the Air Pollution Control Officer, may designate net proceeds 

from emission reduction credit loans to emission reduction programs that meet the 

actual emission reduction criteria of Rule 204, EMISSION REDUCTION CREDITS. 

 318.6 INCENTIVE PROGRAM: In the event Community and Priority Reserve Bank 

revenues available for program funding exceeds the recommended list of emission 

reduction programs accepted by the Board of Directors, the unused funding may be 

used to fund mobile source incentive programs identified in the latest State 

Implementation Plan or may be made available for use in the following year RFP 

cycle. 

400 ADMINISTRATIVE REQUIREMENTS

 401 CALCULATION PROCEDURES: Emission reduction credits deposited in the Priority 

Reserve Bank or the Community Bank shall be quantified pursuant to calculation procedures 

specified in Rule 204, EMISSION REDUCTION CREDITS. 

 402 EMISSION REDUCTION CREDITS: Any stationary source which holds emission reduction 

credits for the affected pollutant requested in an application for Authority to Construct must 

first use those credits prior to being allowed access to the Essential Public Services, Military 

Base Account or the Community Bank. 

 403 NOTIFICATION OF COMMUNITY BANK OR PRIORITY RESERVE BANK RENEWAL FEE:

On the renewal date of the loan, the loan requestor will be notified by mail of the fee due and 

payable, pursuant to Section 313, and the date the fee is due. If the fee is not paid by the 

specified due date, the fee shall be increased by one half the amount and the loan requestor 

shall be notified by mail of the increased fee. If the increased fee is not paid within 30 days 

after notice the loan will be canceled and the loan requestor will be notified by mail. A 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

September 25, 2003 205-13 

canceled loan may be reinstated by payment of the applicable fee plus fee increases. The 

stationary source may be out of compliance if the emissions loan is canceled and the 

stationary source continues to operate under the conditions of the emissions loan. 

 404 NOTIFICATION OF INITIAL LOAN RATE FEE: On the date the emission reduction credits 

are proposed to be disbursed from the Community Bank and Priority Reserve Bank, the loan 

requestor will be notified by mail of the loan fee due and payable, pursuant to Section 312, 

and the date the fee is due. If the loan fee is not paid within 30 days of the notification, the 

loan fee shall be increased by twenty-five percent and the loan requestor shall be notified by 

mail of the increased fee. If the increased fee is not paid within 30 days after notice, the loan 

request will be canceled and the loan requestor will be notified by mail. After a loan request 

has been canceled, the applicant will not be able to request a loan until the following funding 

cycle. 

405 LOAN INITIATION DATE: Upon payment of the initial loan rate fee, the loan shall be 

effective the first day of that calendar quarter. 

500 MONITORING AND RECORDS

 501 RECORDKEEPING

 501.1 Each stationary source shall maintain a cumulative total of emission credits on loan 

from the Priority Reserve Bank or the Community Bank. 

501.2 The District shall maintain records of the source and amount of emission reductions 

obtained for deposit in the Priority Reserve Bank or the Community Bank, loans of 

these credits to applicants and disbursements of Community Bank proceeds.
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS 

205-14 September 25, 2003 

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SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

December 5, 1996 206-1

RULE 206 MOBILE AND TRANSPORTATION SOURCE EMISSION REDUCTION CREDITS

Adopted 12-15-92

(Amended 12-05-96)

INDEX

100 GENERAL

101 PURPOSE

102 APPLICABILITY

103 SEVERABILITY

200 DEFINITIONS

201 ACTUAL EMISSION REDUCTIONS

202 AFFECTED POLLUTANT

203 BASE VEHICLE

204 BURDEN

205 DRIVEABLE

206 CERTIFIED CONVERSION KIT

206 EMFAC

208 FLEET

209 MOBILE SOURCE CONTROL MEASURE

210 REDUCED EMISSION VEHICLE

211 SURPLUS

212 TRANSPORTATION CONTROL MEASURE

300 STANDARDS

301 CERTIFICATION OF CREDITS

302 ADJUSTMENT OF CREDITS

303 OTHER DISTRICT CREDITS

400 ADMINISTRATIVE REQUIREMENTS

401 INITIAL PLAN

402 COMPLIANCE PLAN

403 NEW VEHICLES

404 REPLACEMENT VEHICLES

405 CONVERSIONS

406 COMMUTE ALTERNATIVES: TELECOMMUTING

407 COMPLETE APPLICATION

408 FINAL ACTION

409 REGISTRATION

410 CALCULATION OF EMISSIONS

500 MONITORING AND RECORDS

501 MONITORING

502 RECORD KEEPING
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206-2 December 5, 1996

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SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

December 5, 1996 206-3

100 GENERAL

101 PURPOSE: To provide an administrative mechanism for the review of emission reduction

credits from control of mobile sources and transportation sources for deposit and

registration pursuant to Rule 204, EMISSION REDUCTION CREDITS. This rule is also

intended to provide encouragement for development and implementation of innovative

control methods for mobile and transportation sources. Emissions reduction credits

generated pursuant to this rule may be available for use by stationary sources in other

districts located within the Sacramento Federal Ozone Nonattainment Area.

102 APPLICABILITY: This rule shall apply to all emissions reductions for use by the

stationary source or for transfer to other sources.

103 SEVERABILITY: If a court of competent jurisdiction issues an order that any provision of

this rule is invalid, all other provisions of this rule shall remain in full force and effect to the

extent allowed by law.

200 DEFINITIONS: Unless otherwise defined below, the terms used in this rule shall have the

meanings as defined in Rule 201, GENERAL PERMIT REQUIREMENTS, Rule 202, NEW

SOURCE REVIEW and Rule 204, EMISSION REDUCTION CREDITS.

201 ACTUAL EMISSION REDUCTIONS: Actual emission reductions are real, enforceable,

permanent, and quantifiable, are surplus within the meaning of this rule; and shall be

calculated pursuant to Section 410, Calculation of Emissions.

202 AFFECTED POLLUTANTS: Reactive organic compounds, nitrogen oxides, sulfur

oxides, PM10, and carbon monoxide.

203 BASE VEHICLE: Any motor vehicle that is not a California Air Resources Board certified

reduced emission vehicle.

204 BURDEN: A computer transportation model used for estimating the emissions from

mobile and transportation sources by coupling the emission rates from EMFAC with

vehicle activity information.

205 DRIVEABLE: Any vehicle that is street legal, licensed by the California Department of

Motor Vehicles (if appropriate), and available for use and testing.

206 CERTIFIED EMISSION KIT: Any alternative fuel or add-on hardware conversion (retrofit)

kit which has been certified by the California Air Resources Board to meet either:

206.1 One of the low-emission vehicle standards as specified in Title 13, California

Code of Regulations; or

206.2 The heavy duty optional emissions standards as specified in Title 13, California

Code of Regulations.

207 EMFAC: The most recent computer model approved by the California Air Resources

Board for estimating emission rates from mobile and transportation sources.

208 FLEET: Fifteen (15) or more active vehicles operating within the District and that are

under common ownership or operation and are dispatched from at least one location

within the District.

209 MOBILE SOURCE CONTROL MEASURE: Any strategy to reduce new or existing motor

vehicle emissions through additional control, disposal, change of fuel, or energy source.

210 REDUCED-EMISSION VEHICLE: A light-duty or medium-duty vehicle that is certified by

the California Air Resources Board to one of the low-emission vehicle standards as

specified in Title 13, California Code of Regulations, or a heavy-duty vehicle that is
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

206-4 December 5, 1996

equipped with an engine certified by the California Air Resources Board to one of the

optional emission standards as specified in Title 13, California Code of Regulations.

211 SURPLUS

211.1 Emission reduction in excess of any emission reduction which is:

a. Required or encumbered by any laws, rules, regulations, agreements,

orders, by its terms states that the emission reduction shall be considered

surplus; or

b. Attributed to a control measure which has been noticed for workshop in

the District, or proposed or contained in a State Implementation Plan; or

c. Proposed or contained as near-term measures in the District Air Quality

Attainment Plan for attaining the annual reductions required by the

California Clean Air Act. Temporary actual emissions reductions may be

authorized, if they meet all the requirements of this rule except they are

not permanent, and shall cease to exist as temporary actual emission

reductions upon implementation of the near-term control measure.

211.2 Emissions reductions attributed to a proposed control measure may be re-eligible

as surplus actual emissions reductions for:

a. Control measures identified in the District Air Quality Attainment Plan or

State Implementation Plan where no rule has been adopted within two

years from the scheduled adoption date, provided, however, the Air

Pollution Control Officer has not extended the scheduled adoption date;

or

b. Control measures not identified in the District Air Quality Attainment Plan

or State Implementation Plan where no rule has been adopted and two

years have elapsed beyond the date of the latest public workshop notice;

or

c. Control measures proposed in the District Air Quality Attainment Plan

which are not included into the Plan adopted by the District Board.

212 TRANSPORTATION CONTROL MEASURE: Any strategy to reduce vehicle trips, vehicle

use, vehicle miles traveled, vehicle idling, or traffic congestion for the purpose of reducing

motor vehicle emissions.

300 STANDARDS

301 CERTIFICATION OF CREDITS: A stationary source may obtain credits for actual

emission reductions from one or more mobile or transportation source control measures

provided:

301.1 An Initial Plan and Compliance Plan prepared pursuant to Sections 401 and 402

are approved in writing by the Air Pollution Control Officer; and

301.2 Plans prepared pursuant to Sections 401, and 402 are implemented according to

the schedules contained therein; and

301.3 The Authority to Construct and Permit to Operate for the emissions unit are both

conditioned to require continuous implementation of and compliance with

specified plans prepared pursuant to Sections 401, and 402.

The credits shall be certified pursuant to the requirements of Rule 204, EMISSION

REDUCTION CREDITS except as provided in Sections 407 through 410 of this rule.

302 ADJUSTMENT OF CREDITS: If audits performed pursuant to Section 402, Compliance

Plan, show that emission reductions are not being achieved as quantified pursuant to

Section 401, Initial Plan, then emission reduction credits shall be adjusted to reflect actual

emission reductions achieved. Written notification of such adjustment shall be provided to

the source and user of the emission reduction credits. If such credits have been used by

a stationary source, then such stationary source shall provide additional emission

reductions as required by Rule 202, NEW SOURCE REVIEW.
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

December 5, 1996 206-5

400 ADMINISTRATIVE REQUIREMENTS

401 INITIAL PLAN: A plan detailing the process shall be prepared to qualify the actual

emission reductions from implementation of a mobile source or transportation control

measure. The Initial Plan shall demonstrate that the emission reductions are real,

surplus, quantifiable, enforceable, permanent and shall include data and methods for

quantifying the actual emission reductions for all affected pollutants, specify the life of

the actual emission reductions, quantify any increases in emissions projected to occur

over the life of the actual emission reductions, and identify requirements or encumbrances

as defined in Section 211 for the specified life of the actual emission reductions.

402 COMPLIANCE PLAN: A plan detailing the process for confirming the actual emission

reductions shall be submitted for approval of the Air Pollution Control Officer. The

Compliance Plan shall include but not be limited to all of the following elements:

402.1 Records: The Compliance Plan shall identify records which confirm projections

made in the Initial Plan, and procedures for maintaining such records.

402.2 Audits: Audits performed on a regular basis, at the expense of the stationary

source, by independent contractors to verify records, perform emissions testing

and sampling, calculate emissions, and to verify continued implementation of the

control strategy and actual emission reductions. Results of all audits shall be

submitted to the Air Pollution Control Officer for review and approval.

402.3 Contract: A contractual agreement between the stationary source and the District

stating the consequences for not complying with all requirements of the Initial

Plan and Compliance Plan. Such a contract shall not limit the District's

enforcement options as provided under District, state, or federal laws, rules or

regulations.

403 NEW VEHICLES: For purposes of compliance with Sections 401 and 402 for actual

emission reductions from the addition of new reduced-emission fleet vehicles to new or

existing fleets:

403.1 Initial Plans shall include, but not be limited to the following:

a. Current number of fleet vehicles, proposed number of new, reducedemission vehicles for specified weight class; passenger car, light duty

truck, medium duty vehicle, or heavy duty vehicle (engine) as defined in

the California Code of Regulations Title 13, Section 1900.

b. Emission rate for all affected pollutants and the corresponding emission

standard for the new vehicle as specified in the appropriate section of the

California Code of Regulations, Title 13, Section 1960.1 or 1956.8.

c. Emission standard for the base vehicle of the same vehicle class and

model year, as specified in the appropriate section of the California Code

of Regulations Title 13, Section 1960.1 or 1956.8.

d. Quarterly emission projections for all affected pollutants for the new

vehicle and base vehicle using the latest version of transportation

models, EMFAC and BURDEN, based on the emission rate estimates

and standards provided in Section 403.1.c and 403.1.d. Where EMFAC

and BURDEN are not applicable, provide written analysis and justification

for other estimates including methodology, data, and assumptions for

approval of the Air Pollution Control Officer.

e. Mileage projections for lower emitting vehicle use within the air basin

expressed quarterly.

f. Fuel usage projections for each fuel type expressed quarterly.

g. Projections for new vehicle life, and projected increases in emissions

over the vehicle life due to engine wear, degradation of controls, and

other causes.

h. Identify requirements or encumbrances as defined in Section 211 for the

specified life of the actual emission reductions.

i. Estimation of actual emission reductions utilizing the aforementioned

assumptions and data.
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

206-6 December 5, 1996

403.2 Compliance Plans shall include, but not be limited to the following:

a. Monthly records compiled quarterly of mileage inside and outside the air

basin, fuel usage by fuel type, vehicle maintenance records.

b. Audits performed on a regular basis to verify records, perform actual

vehicle emissions testing, fuel sampling, and calculate actual emission

reductions. Results from emissions testing shall not be used to adjust the

actual emission reductions pursuant to Section 302. Audit reports shall

be prepared and submitted to the District summarizing the results.

c. A contractual agreement between the stationary source and the District

stating the consequences for not complying with all requirements of the

Initial and Compliance Plans, including the provisions of Section 302,

Adjustment of Credits. Such a contract shall not limit the District's

enforcement options as provided under District, state, or federal laws,

rules or regulations.

404 REPLACEMENT VEHICLES: For purposes of compliance with Sections 401 and 402 for

actual emission reductions from the replacement of existing fleet vehicles with cleaner

burning vehicles:

404.1 Initial Plans shall include, but not be limited to the following:

a. Current number of fleet vehicles, proposed number of new, reducedemission vehicles, and proposed number of vehicles being removed from

service. Specify the weight class for each of the aforementioned items;

passenger car, light duty truck, medium duty vehicle, or heavy duty

vehicle (engine) as defined in the California Code of Regulations, Title

13, Section 1900.

b. Emission rate for all affected pollutants and the corresponding emission

standard for vehicles being removed from service, as specified in the

appropriate section of the California Code of Regulations, Title 13,

Section 1960.1 or 1956.8.

c. Emission rate for all affected pollutants and the corresponding emission

standard for the new reduced-emission vehicle and a base vehicle of the

same vehicle class and model year, as specified in the appropriate

section of the California Code of Regulations, Title 13, Section 1960.1 or

1956.8.

d. Quarterly emission projections for all affected pollutants for the new 

reduced-emission vehicles, base vehicles, and the vehicles being

replaced, using the latest version of transportation models, EMFAC and

BURDEN, based on emission rate estimate provided in Section 404.1.b

and 404.1.c. where EMFAC and BURDEN are not applicable provide

written analysis and justification for other estimates including

methodology, data, and assumptions for approval of the Air Pollution

Control Officer.

e. Mileage projections for new vehicle use within the Sacramento Valley air

basin expressed quarterly. Actual odometer readings for the vehicle

being replaced.

f. Fuel usage projections for each fuel type expressed quarterly.

g. Average age of the existing vehicle fleet, and projections for new vehicle

life, and projected increases in emissions over the vehicle life due to

depreciation, engine wear, degradation of controls, and other causes.

h. Identify requirements or encumbrances as defined in Section 211 for the

specified life of the actual emission reductions.

i. Estimation of actual emission reductions utilizing the aforementioned

assumptions.

j. California Department of Motor Vehicles vehicle registration for the

vehicles being replaced for two years prior to the date of replacement. 

Vehicles not registered within the District are not eligible for use as

emission reduction credits within the District unless records demonstrating

the use of vehicles within the District are submitted to, verified, and
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

December 5, 1996 206-7

approved by the Air Pollution Control Officer. Emission reduction credits

are not eligible for vehicles unless such vehicles are driveable.

404.2 Compliance Plans shall include, but not be limited to the following:

a. Monthly records compiled quarterly of mileage inside and outside the

Sacramento Valley air basin, fuel usage by fuel type, vehicle

maintenance records.

b. Audits performed on a regular basis to verify records, perform actual

vehicle emissions testing, fuel sampling, and calculate actual emission

reductions. Results from emissions testing shall not be used to adjust the

actual emission reductions pursuant to Section 302. Audit reports shall be

prepared and submitted to the District summarizing the results.

c. Certification of vehicles taken out-of service, and that such vehicles were

driveable at the time of removal from service.

d. A contractual agreement between the stationary source and the District

stating the consequences for not complying with all requirements of the

Initial and Compliance Plans. Such a contract shall not limit the District

enforcement options as provided under District, state, or federal laws,

rules or regulations.

405 CONVERSIONS: For purposes of compliance with Sections 401 and 402 for actual

emission reductions from the conversion of existing fleet vehicles to reduced-emission

vehicle configurations using certified conversion kits, the applicant shall submit to the

District the following:

405.1 Initial Plans shall include, but not be limited to the following:

a. Proposed number of vehicles undergoing conversion for a specified

weight class; passenger car, light duty truck, medium duty vehicle, or

heavy duty vehicle (engine) as defined in the California Code of

Regulations, Title 13, Section 1900.

b. Proposed emission rate for all affected pollutants of converted vehicles

from California Air Resources Board certification test data.

c. Emission rate of all affected pollutants and emission standard for an

unconverted vehicle of the same vehicle class and model year, as

specified in the appropriate section of the California Code of Regulations,

Title, 13, Section 1960.1 or 1956.8.

d. Quarterly emission projections for all affected pollutants for the converted

vehicles and unconverted vehicles, using the latest version of

transportation models, EMFAC and BURDEN, based on emission rate

estimate provided in Section 405.1.b and 405.1.c. Where EMFAC and

BURDEN are not applicable provide written analysis and justification for

other estimates including methodology, data, and assumptions for

approval of the Air Pollution Control Officer.

e. Actual mileage and trip records for two years prior to conversion for use

within the Sacramento Valley air basin expressed quarterly. If the last

two years are unrepresentative of normal operations as determined by

the Air Pollution Control Officer, then any two consecutive years of the

last five years, that represent normal source operation, may be used. 

f. Average age of the existing vehicle fleet, projections for lower emitting

vehicle life, and projected increases in emissions over the vehicle life due

to engine wear, degradation of controls, and other causes.

g. Identify requirements or encumbrances as defined in Section 211 for the

specified life of the actual emission reductions.

h. Estimation of actual emission reductions utilizing the aforementioned

projections.

405.2 Compliance Plans shall include, but not be limited to the following:

a. Monthly records compiled quarterly of mileage inside and outside the

Sacramento Valley air basin, fuel usage by fuel type, vehicle

maintenance records.

b. Annual inspection and maintenance of emissions.
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206-8 December 5, 1996

c. Audits performed on a regular basis to verify records, perform actual

vehicle emissions testing, fuel sampling, and calculate actual emission

reductions. Results from emissions testing shall not be used to adjust the

actual emission reductions pursuant to Section 302. Audit reports shall

be prepared and submitted to the District summarizing the results.

d. A contractual agreement between the stationary source and the District

stating the consequences for not complying with all requirements of the

Initial and Compliance Plans. Such a contract shall not limit the District

enforcement options as provided under District, state, or federal laws,

rules or regulations.

406 COMMUTE ALTERNATIVES: TELECOMMUTING: For purposes of compliance with

Sections 401 and 402 for actual emission reductions from the reduction in commute trips

from telecommute options:

406.1 Initial Plans shall include, but not be limited to the following:

a. Current trips of commuters participating in the program for two years prior

including vehicle miles traveled, number of trips per month, time required

for travel or other congestion estimation method, ridership, and vehicle

weight class as defined in the California Code of Regulations, Title 13,

Section 1900. If the last two years are unrepresentative of normal

operations as determined by the Air Pollution Control Officer, then any

two consecutive years of the last five years, that represent normal

operations, may be used.

b. Emission standards for specified vehicle class and model year of vehicles

as specified in the appropriate section of the California Code of

Regulations, Title 13, Section 1960.1 or 1956.8.

c. Proposed trips of commuters participating in the program including

vehicle miles traveled, number of trips per month, time required for travel

or other congestion estimation method, and ridership.

d. Estimation of actual emission reductions utilizing the aforementioned

assumptions.

e. Identify requirements or encumbrances as defined in Section 211 for the

specified life of the actual emission reductions.

406.2 Compliance Plans shall include, but not be limited to the following:

a. A contractual agreement between employer and employee program

participants.

b. Contingency measures for dealing with shortfalls in actual emission

reductions.

c. Monthly records compiled quarterly of actual telecommuting activity,

including information regarding the actual number of trips made and

number of trips reduced.

d. Audit reports submitted on a regular basis for records, and telecommuting

activity, including information regarding the actual number of trips made

and number of trips reduced.

e. A contractual agreement between the stationary source and the District

stating the consequences for not complying with all requirements of the

Initial and Compliance Plans. Such a contract shall not limit the District

enforcement options as provided under District, state, or federal laws,

rules or regulations.

407 COMPLETE APPLICATION: The Air Pollution Control Officer shall determine whether

the application for certification of credits is complete not later than 30 days after receipt of

the application, or after such longer time as both the applicant and the Air Pollution

Control Officer have agreed in writing. If the Air Pollution Control Officer 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 re-submittal of the application, a

new 30-day period to determine completeness shall begin. Completeness of an

application or re-submitted application shall be evaluated on the basis of the information
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

December 5, 1996 206-9

requirements set forth in The District’s List and Criteria (adopted pursuant to Article 3,

65940 through 65944 of Chapter 4.5 of Division l of Title 7 of the California Government

Code) as it exists on the date on which the application or re-submitted application was

received. The Air Pollution Control Officer may, during the processing of the application,

request an applicant to clarify, amplify, correct, or otherwise supplement the information

submitted in the application.

408 FINAL ACTION: The Air Pollution Control Officer shall not make a final determination of

the amount of reductions achieved under an Initial Plan until the Initial Plan has been

implemented for 60 days. Within 45 days after the required implementation period, the Air

Pollution Control Officer shall issue a conditional approval or denial based on the actual

emission reductions achieved during the implementation period. Further, the California

Air Resources Board and the United States Environmental Protection Agency regional

office, and to any party which requests such information, shall be notified of final action.

409 REGISTRATION: Following preparation and implementation of an Initial Plan and

Compliance Plan and verification that the proposed emission reductions have been

implemented in accordance with the provisions of this rule to the satisfaction of the Air

Pollution Control Officer, the Air Pollution Control Officer shall issue the Emission

Reduction Credits Certificate according to the procedures and requirements established in

Rule 204, EMISSION REDUCTION CREDITS.

410 CALCULATION OF EMISSIONS: Calculation of actual emission reductions from mobile

source control measures listed in this rule shall be consistent with Sections 410.1 through

410.3 and with the most current version of the California Air Resources Board Guidelines

for the Generation and Use of Mobile Source Emission Reduction Credits and shall use

information submitted pursuant to Sections 401, 403.1, 404.1, 405.1 or 406.1. Calculation

of actual emissions reductions from transportation control measures shall be consistent

with Sections 410.1 through 410.3 of this rule and shall use all information submitted

pursuant to Sections 401, 403.1, 404.1, 405.1 or 406.1.

410.1 Actual emission reductions shall be calculated for each calendar quarter by

subtracting the proposed emissions from historical actual emissions. Any positive

value shall qualify for conversion to an emission reduction credit. For the

purposes of calculating emission reductions pursuant to Section 403, proposed

emissions from the reduced-emission vehicle will be subtracted from the

proposed emissions from the base vehicle which would have been purchased

had the reduced emission had the reduced-emission vehicle had not been

purchased.

410.2 Credits for particulate matter emission reduction credits shall be expressed in

terms of PM10.

410.3 Credits for nitrogen oxides, reactive organic compounds, carbon monoxide, sulfur

oxides and PM10 shall be quantified in terms of pounds of pollutants per quarter

for each calendar quarter.

500 MONITORING AND RECORDS

501 MONITORING: The Air Pollution Control Officer may require at any time monitoring or

testing to ensure compliance with the provisions of this rule.

502 RECORD KEEPING: Any persons subject to this rule shall maintain records required by

the Initial Plan and Compliance Plan or for compliance with Section 501 for three years

and make them available for review by the Air Pollution Control Officer upon request.
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206-10 December 5, 1996

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SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

April 26, 2001 207-1

RULE 207 TITLE V - FEDERAL OPERATING PERMIT PROGRAM

Adopted 6-7-94

(Amended 9-5-96, 12-4-97, 4—26-01)

INDEX

100 GENERAL

101 PURPOSE

102 APPLICABILITY

110 EXEMPTION - RESIDENTIAL WOOD HEATERS

111 EXEMPTION - ASBESTOS DEMOLITION AND RENOVATION

112 EXEMPTION - NOTIFICATION REQUIREMENTS

200 DEFINITIONS

201 ACTUAL EMISSIONS

202 ADMINISTRATIVE TITLE V PERMIT AMENDMENT

203 AIR POLLUTION CONTROL OFFICER

204 ALTERNATIVE OPERATING SCENARIOS

205 AMBIENT AIR QUALITY STANDARDS

206 APPLICABLE FEDERAL REQUIREMENT

207 CODE OF FEDERAL REGULATIONS

208 COMPLETE TITLE V PERMIT APPLICATION

209 CONTIGUOUS PROPERTY

210 DISTRICT

211 DRAFT TITLE V PERMIT

212 EMERGENCY

213 EMISSION CAP

214 EMISSIONS UNIT

215 FEDERALLY ENFORCEABLE

216 FINAL TITLE V PERMIT

217 FUGITIVE EMISSIONS

218 HAZARDOUS AIR POLLUTANT (HAP)

219 MAJOR STATIONARY SOURCE - TITLE V

220 MINOR TITLE V PERMIT MODIFICATION

221 NESHAP STANDARDS

222 NON-FEDERALLY ENFORCEABLE PERMIT CONDITION

223 OWNER OR OPERATOR

224 PERMIT MODIFICATION

225 PHASE II ACID RAIN FACILITY

226 POTENTIAL TO EMIT

227 PRECONSTRUCTION PERMIT

228 PROPOSED TITLE V PERMIT

229 REGULATED AIR POLLUTANT

230 RESPONSIBLE OFFICIAL

231 SCHEDULE OF COMPLIANCE

232 SEVERABILITY CLAUSE

233 SIGNIFICANT TITLE V PERMIT MODIFICATION

234 STATIONARY SOURCE

235 SUBJECT SOLID WASTE INCINERATOR FACILITY

236 TITLE V PERMIT

237 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY (EPA)

238 VOLATILE ORGANIC COMPOUND (VOC)

239 VOLUNTARY EMISSIONS CAP
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

207-2 April 26, 2001

300 STANDARDS

301 TIMING FOR SUBMITTAL OF TITLE V PERMIT APPLICATION

302 CORRECTING AND UPDATING OF A TITLE V PERMIT APPLICATION

303 TITLE V PERMIT APPLICATION SHIELD

304 CERTIFICATION REQUIREMENTS

305 TITLE V PERMIT CONTENT

306 TITLE V PERMIT TERM

307 TITLE V PERMIT SHIELD

308 OPERATIONAL FLEXIBILITY

400 ADMINISTRATIVE REQUIREMENTS

401 COMPLETE APPLICATION

402 PRELIMINARY DECISION

403 PUBLICATION AND PUBLIC COMMENT, PRELIMINARY DECISION

404 TRANSMITTING OF INFORMATION TO EPA

405 EPA OBJECTION

406 PUBLIC OBJECTION

407 FINAL ACTION ON TITLE V PERMITS

408 NOTIFICATION AND PUBLICATION OF FINAL ACTION

409 ADMINISTRATIVE TITLE V PERMIT AMENDMENTS

410 MINOR TITLE V PERMIT MODIFICATIONS

411 REOPENING OF TITLE V PERMIT FOR CAUSE

412 REOPENING OF TITLE V PERMIT FOR CAUSE BY EPA

413 COMPLIANCE REQUIREMENTS

414 EMERGENCY PROVISIONS

500 REPORTING AND RECORDKEEPING

501 REPORTING REQUIREMENTS

502 RECORDKEEPING REQUIREMENTS
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April 26, 2001 207-3

100 GENERAL

101 PURPOSE: To establish an operating permitting system consistent with the requirements of 42 

U.S.C. Section 7661 et seq. (Title V) and pursuant to 40 CFR Part 70. Stationary sources 

subject to the requirements of this Rule are also required to comply with any other applicable 

federal, state, or District orders, rules and regulations, including requirements pertaining to 

prevention of significant deterioration pursuant to Rule 203, PREVENTION OF SIGNIFICANT 

DETERIORATION, requirements to obtain an authority to construct pursuant to Rule 201, 

GENERAL PERMIT REQUIREMENTS, or applicable requirements under Rule 202, NEW 

SOURCE REVIEW.

102 APPLICABILITY: This rule shall apply to the following sources:

102.1 Major stationary sources as defined in Section 219.

102.2 Any stationary source with a potential to emit 100 tons per year of any regulated air 

pollutant. 

102.3 Affected sources under the acid rain provisions of Title IV of the Federal Clean Air Act.

102.4 Any source subject to Rule 203, PREVENTION OF SIGNIFICANT DETERIORATION.

102.5 Any solid waste incineration unit required to obtain a Title V permit pursuant to 

Section 129(e) (42 U.S.C. Section 7429) of the Federal Clean Air Act.

102.6 Any other stationary source in a source category designated, pursuant to 40 CFR Part 

70.3, by rule by EPA.

102.7 Any stationary source that is subject to standards or other requirements promulgated 

pursuant to Section 111 or 112 (42 U.S.C. Section 7411 or 7412) of the Federal Clean 

Air Act, published after July 21, 1992, designated, pursuant to 40 CFR Part 70.3, by 

EPA at the time the new standard or requirement is promulgated.

110 EXEMPTION - RESIDENTIAL WOOD HEATERS: This rule shall not apply to residential wood 

heaters.

111 EXEMPTION - ASBESTOS DEMOLITION AND RENOVATION: This rule shall not apply to 

any demolition or renovation operation at an asbestos-containing source if the source is 

required to obtain a permit solely because it is subject to the demolition and renovation 

requirements in Section 304 of Rule 902, ASBESTOS.

112 EXEMPTION - NOTIFICATION REQUIREMENTS: The requirements of Sections 401 through 

408 shall not apply to the following:

112.1 Administrative Title V permit amendments as defined in Section 202.

112.2 Operational changes that are allowed under Section 308.

200 DEFINITIONS

201 ACTUAL EMISSIONS: Measured or estimated emissions which most accurately represent the 

emissions from an emissions unit.

202 ADMINISTRATIVE TITLE V PERMIT AMENDMENT: A permit revision that is not a

modification as defined by Rule 202, NEW SOURCE REVIEW and is limited to the following:

202.1 Corrects typographical errors;

202.2 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 stationary source;

202.3 Requires more frequent monitoring or reporting by the responsible official of the 

stationary source;

202.4 Allows for change in ownership or operational control of a source where the Air 

Pollution Control Officer determines that no other change in the Title V permit is 

necessary, provided that a written agreement containing a specific date for transfer of 

Title V permit responsibility, coverage, and liability between the current and new 

responsible official has been submitted to the Air Pollution Control Officer; or
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207-4 April 26, 2001

202.5 Incorporates into the Title V permit the conditions of a preconstruction permit that is 

issued to an existing Title V stationary source through Rule 202, NEW SOURCE 

REVIEW and meeting the procedural requirements specified in Sections 401 through 

408 of this Rule and the compliance requirements in Section 305 of this Rule.

Administrative Title V permit amendments for purposes of the acid rain portion of the Title V 

permit shall be governed by regulations promulgated under Title IV (42 U.S.C. Section 7651 et 

Seq) of the Federal Clean Air Act.

203 AIR POLLUTION CONTROL OFFICER: The air pollution control officer of the Sacramento 

Metropolitan Air Quality Management District (SMAQMD), or his or her designee.

204 ALTERNATIVE OPERATING SCENARIOS Any alternative operating conditions of the

permitted emissions units at the stationary source which are:

204.1 Identified by the responsible official in the Title V permit application;

204.2 Approved by the Air Pollution Control Officer;

204.3 Specified in the Title V permit conditions; and

204.4 In compliance with all applicable District, state, and federal requirements.

205 AMBIENT AIR QUALITY STANDARDS: National Ambient Air Quality Standards.

206 APPLICABLE FEDERAL REQUIREMENT: All of the following as they apply to emissions 

units at a stationary source (including requirements that have been promulgated or approved by 

EPA through rulemaking at the time of issuance of the Title V permit but have future effective 

compliance dates):

206.1 Any standard or other requirement provided for in the applicable state implementation 

plan approved by EPA or in the federal implementation plan promulgated by EPA;

206.2 Any term or condition of any preconstruction permit issued pursuant to regulations 

approved or promulgated through rulemaking under Title I, including parts C or D, or 

the Federal Clean Air Act, including permits issued pursuant to Rule 202, NEW 

SOURCE REVIEW, or Rule 203, PREVENTION OF SIGNIFICANT DETERIORATION;

206.3 Any standard or other requirement under Section 112 (U.S.C. Section 7412) of the 

Federal Clean Air Act, including any requirement concerning accident prevention under 

Section 112(r) (42 U.S.C. Section 7412(r)(7) of the Federal Clean Air Act;

206.4 Any standard or other requirement of the acid rain program under Title IV (42 U.S.C. 

Section 7651 et Seq) of the Federal Clean Air Act, or the regulations promulgated 

thereunder;

206.5 Any monitoring or other requirements established pursuant to Section 504(b) (42 

U.S.C. Section 7661c(b) or Section 114(a)(3) (42 U.S.C. Section 7414(a)(3) of the 

Federal Clean Air Act;

206.6 Any standard or other requirement of the regulations promulgated to protect 

stratospheric ozone under Title VI of the Federal Clean Air Act, unless the EPA has 

determined that such requirements need not be contained in a Title V permit;

206.7 Any national ambient air quality standard or increment or visibility requirement under 

part C of Title I of the Federal Clean Air Act, but only as it would apply to temporary 

sources permitted pursuant to Section 504(e) (42 U.S.C. Section 7661c(e) of the 

Federal Clean Air Act;

206.8 Any standard or other requirement governing solid waste incineration under section 

129 (42 U.S.C. Section 7429) of the Federal Clean Air Act;

206.9 Any standard or requirement or consumer and commercial products, under Section 

183(e) (42 U.S.C. Section 7511b(e) of the Federal Clean Air Act; and

206.10 Any standard or other requirement under Section 111 (42 U.S.C. Section 7411) of the 

Federal Clean Air Act, including those adopted in Rule 801, NEW SOURCE

PERFORMANCE STANDARDS.
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

April 26, 2001 207-5

207 CODE OF FEDERAL REGULATIONS (CFR): The United States Code of Federal Regulations

208 COMPLETE TITLE V PERMIT APPLICATION: An application that meets all applicable 

requirements specified in the District's "LIST AND CRITERIA" for permit applications.

209 CONTIGUOUS PROPERTY: Two or more parcels of land with a common boundary or 

separated solely by a public roadway or other public right-of-way.

210 DISTRICT: The Sacramento Metropolitan Air Quality Management District.

211 DRAFT TITLE V PERMIT: The version of a Title V permit for which the Air Pollution Control 

Officer offers public participation pursuant to Section 403.

212 EMERGENCY: A situation arising from sudden and reasonable unforeseeable events beyond 

the control of the stationary source, including acts of God, which situation requires normal 

operation, and that causes the stationary source to exceed a technology-based emission 

limitation under the Title V permit, due to unavoidable increases in emissions attributable to the 

emergency. An emergency shall not include noncompliance to the extent caused by 

improperly designed equipment, lack of preventative maintenance, careless or improper 

operation, or operator error.

213 EMISSION CAP: A federally enforceable emission limit affecting one or more emission units at 

a stationary source.

214 EMISSIONS UNIT: An identifiable operation or piece of process equipment such as an article, 

machine, or other contrivance which controls, emits, may emit, or results in the emissions of 

any regulated air pollutant or HAP. For purpose of this rule, each source of fugitive emissions 

shall be treated as an emissions unit and shall be subject to all exemptions and requirements 

applicable to emissions units.

215 FEDERALLY ENFORCEABLE: All limitations and conditions which are enforceable by EPA, 

including:

215.1 Requirements developed pursuant to 40 CFR Parts 60 (NSPS), 61 (NESHAPS), 63 

(HAP), 70 (State Operating Permit Programs), and 72 (Permits Regulation, Acid Rain);

215.2 Requirements contained in the State Implementation Plan (SIP), that are applicable to 

the District; and

215.3 District permit requirements established pursuant to 40 CFR Part 52.21 (PSD) or 

District permit requirements established pursuant to 40 CFR Part 51, Subpart I (NSR).

216 FINAL TITLE V PERMIT: The version of the Title V permit that is issued by the Air Pollution 

Control Officer that has completed all applicable review procedures required by Section 400.

217 FUGITIVE EMISSIONS: Emissions which could not reasonably pass through a stack, 

chimney, vent, or other functionally-equivalent opening.

218 HAZARDOUS AIR POLLUTANT (HAP): Any air pollutant listed pursuant to Section 112(b) (42 

 U.S.C. Section 7412(b) of the Federal Clean Air Act.

219 MAJOR STATIONARY SOURCE - TITLE V: For the purpose of this rule, a major stationary 

source is defined as follows:

219 .1 A stationary source with a potential to emit 100 tons per year of any air pollutant;

219 .2 A stationary source, as defined in Section 112 (42 U.S.C. Section 7412) of the Federal 

Clean Air Act, with a potential to emit 10 tons per year, or more, of any hazardous air 

pollutant or 25 tons per year, or more, of any combination of hazardous air pollutants 

other than radionuclides, or such lesser quantity as the EPA may establish by rule. 

All fugitive emissions of hazardous air pollutants are included in determining the 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

207-6 April 26, 2001

stationary source's potential to emit. For radionuclides, the definition of a major 

facility shall have the meaning specified by EPA by rule; or

219.3 A stationary source with a potential to emit exceeding: 50 tons per year of nitrogen 

oxides, 50 tons per year of volatile organic compounds, 100 tons per year of sulfur 

dioxide, 100 tons per year of carbon monoxide, or 100 tons per year of PM10 or with a 

potential to emit exceeding the major stationary source thresholds that are listed in 

Title I of the Federal Clean Act for nitrogen oxide or volatile organic compounds, the 

thresholds that are listed in 40 CFR Part 51 for carbon monoxide, or the thresholds 

that are listed in 40 CFR Part 52 for PM10 or sulfur dioxide which correspond to the 

nonattainment designation of the District. The fugitive emissions of a source shall not 

be considered in determining whether it is a major stationary source, unless the 

source belongs to one of the following categories of stationary sources:

1. Coal cleaning plants (with thermal dryers);

2. Kraft pulp mills;

3. Portland cement plants;

4. Primary zinc smelters;

5. Iron and steel mills;

6. Primary aluminum ore reduction plants;

7. Primary copper smelters;

8. Municipal incinerators capable of charging more than 250 tons of refuse per 

day;

9. Hydrofluoric, sulfuric, or nitric acid plant;

10. Petroleum refineries;

11. Lime plants;

12. Phosphate rock processing plants;

13. Coke oven batteries;

14. Sulfur recovery plants;

15. Carbon black plants (furnace process);

16. Primary lead smelters;

17. Fuel conversion plants;

18. Sintering plants;

19. Secondary metal production plants;

20. Chemical process plants;

21. Fossil-fuel boilers (or combination thereof) totaling more than 250 million 

British thermal units per hour heat input;

22. Petroleum storage and transfer units with a total storage capacity exceeding 

300,000 barrels;

23. Taconite ore processing plants;

24. Glass fiber processing plants;

25. Charcoal production plants;

26. Fossil-fuel-fired steam electric plants of more than 250 million British thermal 

units per hour heat input; or

27. All other stationary source categories regulated by a standard promulgated 

under Section 111 or 112 (42 U.S.C. Section 7411 of 7412) of the Federal 

Clean Air Act, but only with respect to those air pollutants that have been 

regulated for that category.

220 MINOR TITLE V PERMIT MODIFICATION: A modification to a federally enforceable condition 

in a Title V permit to operate which:

220.1 Is not a significant Title V permit modification;

220.2 Is not an administrative Title V permit amendment; and

220.3 Does not violate any applicable requirements which are federally enforceable.

221 NESHAP: National Emissions Standards for Hazardous Air Pollutants (40 CFR Part 61).
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

April 26, 2001 207-7

222 NON-FEDERALLY ENFORCEABLE CONDITION: A condition not subject to enforcement 

actions by EPA.

223 OWNER OR OPERATOR: Any person who owns, leases, operates, controls, or supervises a 

stationary source.

224 PERMIT MODIFICATION: Any revision to a Title V permit that cannot be accomplished under 

provisions for administrative Title V permit amendments pursuant to Section 409. A Title V 

permit modification for the purpose of the acid rain portion of the Title V permit shall be 

governed by 40 CFR Part 72 regulations promulgated under Title IV of the Federal Clean Air 

Act.

225 PHASE II ACID RAIN FACILITY: A facility that includes any affected unit listed in 40 CFR Part 

72.6 that is subject to the Acid Rain Program.

226 POTENTIAL TO EMIT: The maximum physical and operational design capacity to emit a 

pollutant during each calendar year. Limitations on the physical or operational design 

capacity, including emissions control devices and limitations on hours of operation, may be 

considered only if such limitations are federally enforceable or legally and practicably 

enforceable by the District.

227 PRECONSTRUCTION PERMIT: A permit authorizing construction of an emissions unit and 

includes the following:

227.1 A preconstruction permit issued pursuant to Rule 203, PREVENTION OF

SIGNIFICANT DETERIORATION; or

227.2 An Authority to Construct permit issued pursuant to Rule 201, GENERAL PERMIT 

REQUIREMENTS and Rule 202, NEW SOURCE REVIEW.

228 PROPOSED TITLE V PERMIT: The version of the Title V permit that the Air Pollution Control 

Officer proposes to issue and forwards to the EPA for review pursuant to Section 404.

229 REGULATED AIR POLLUTANT: Any of the following air pollutants:

229.1 Any pollutant for which a national ambient air quality standard has been promulgated 

under Title I of the Federal Clean Air Act, including nitrogen oxides and volatile organic 

compounds as precursors to ozone;

229.2 Any pollutant that is regulated under any standard promulgated under Section 111(42 

U.S.C. Section 7411) of the Federal Clean Air Act, including New Source Performance 

Standards in 40 CFR Part 60;

229.3 Any Class I or II substance subject to a standard promulgated under or established by 

Title VI of the Federal Clean Air Act;

229.4 Any pollutants regulated under Section 112 (42 U.S.C. Section 7412) of the Federal 

Clean Air Act, including Sections 112(g), 112(j), and 112(r) (42 U.S.C. Sections 

7412(g), 7412(j), and 7412(r) of the Federal Clean Air Act, including the following:

a. Any pollutant subject to requirements under Section 112(j) (42 U.S.C. Section 

7412(j) of the Federal Clean Air Act If EPA fails to promulgate a standard by 

the date established pursuant to Section 112(e) (42 U.S.C. Section 7412(j) of 

the Federal Clean Air Act, any pollutant for which a source would be major 

shall be considered to be a regulated air pollutant on the date 18 months after 

the applicable date established pursuant to Section 112(e) (42 U.S.C. Section 

7412(e) of the Federal Clean Air Act; and

b. Any pollutant for which the requirements of Section 112(g)(2) (42 U.S.C. 

Section 7412(g)(2) of the Federal Clean Air Act have been met, but only with 

respect to individual sources subject to Section 112(g)(2) (U.S.C. Section 

7412(g)(2) of the Federal Clean Air Act requirements.
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207-8 April 26, 2001

230 RESPONSIBLE OFFICIAL: For the purpose of this rule, a responsible official shall mean one 

of the following:

230.1 For a corporation: a president, secretary, treasurer, or vice-president of the corporation 

in charge of a principal business function, or any other person who performs similar 

policy or decision-making functions for the corporation, or a duly authorized

representative of such person if the representative is responsible for the overall 

operation of one or more manufacturing, production, or operating facilities applying for 

or subject to a Title V permit and either:

a. The facilities employ more than 250 persons or have gross annual sales or 

expenditures exceeding $25 million (in second quarter 1980 dollars); or

b. The delegation of authority to such representatives is approved in advance by 

the Air Pollution Control Officer;

230.2 For a partnership or sole proprietorship: a general partner or the proprietor,

respectively;

230.3 For a municipality, state, federal, or other public agency: either a principal executive 

officer or ranking elected official. For the purposes of this rule, a principal executive 

officer of a federal agency includes the chief executive officer having responsibility for 

the overall operations of a principal geographic unit of the agency (e.g., a Regional 

Administrator of EPA); or

230.4 For phase II acid rain facilities subject to Title IV requirements:

a. The designated representative in so far as actions, standards, requirements, 

or prohibitions under Title IV of the Federal Clean Air Act or the regulations 

promulgated thereunder are concerned; and

b. The designated representative for any other purposes under 40 CFR Part 70 

regulations.

231 SCHEDULE OF COMPLIANCE: A schedule of remedial measures, including an enforceable 

sequence of actions or operations, leading to compliance with an applicable implementation 

plan, emission standard, emission limitation, or emission prohibition.

232 SEVERABILITY CLAUSE: A statement in the Title V permit that, in the case of a challenge to 

any part of the Title V permit, the remaining parts of the Title V permit will remain valid.

233 SIGNIFICANT TITLE V PERMIT MODIFICATION: A modification to a federally enforceable 

condition in the Title V permit which: 

233.1 Involves any modification under Section 112(g) of Title I (42 U.S.C. Section 412(g) of 

the Federal Clean Air Act, or under EPA regulations promulgated pursuant to Title I of 

the Federal Clean Air Act, including 40 CFR Part 51, 52, 60, 61, and 63;

233.2 Involves relaxation or significant change to existing monitoring, reporting or

recordkeeping requirements in the Title V permit;

233.3 Involves case-by-case determination of an emission limit or other standard; 

233.4 Involves a stationary source-specific determination for temporary sources of ambient 

impacts, or a visibility or increment analysis;

233.5 Attempts to set or change a Title V permit term or condition which allows a source to 

avoid an applicable federal requirement including:

a. A federally enforceable emission cap pursuant to Title I of the Federal Clean 

Air Act; or

b. An alternative HAP emission limit pursuant to Section 112(i)(5) (Section 42 

U.S.C. Section 7412(j)(5) of the Federal Clean Air Act; or

233.6 Involves a modification to a major stationary source which results in an increase in the 

potential to emit greater than: 25 tons per year of nitrogen oxides, 25 tons per year of 

volatile organic compounds, 40 tons per year of sulfur dioxide, 100 tons per year of 

carbon monoxide, or 15 tons per year of PM10 when aggregated with all other 

increases in potential to emit over the period of five consecutive years before the 

application for modification, and including the calendar year of the most recent 

application.
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

April 26, 2001 207-9

234 STATIONARY SOURCE: Any building, structure, facility, or emissions unit which emits or may 

emit any regulated air pollutant or HAP. 

234.1 Building, structure, facility, or emissions unit includes all pollutant emitting activities 

which:

a. Belong to the same industrial grouping, and

b. Are located on one property or on two or more contiguous properties, and

c. Are under the same or common ownership, operation, or control or which are 

owned or operated by entities which are under common control.

234.2 Pollutant emitting activities shall be considered as part of the same industrial grouping 

if:

a. They belong to the same two-digit standard industrial classification code, or

b. They are part of a common production process (Common production process 

includes industrial processes, manufacturing processes and any connected 

processes involving a common material).

234.3 The emissions from loading and unloading of cargo carriers at the stationary source 

shall be considered emissions from the stationary source. 

234.4 The emissions related to the cargo carriers will not be included when determining the 

applicability of the requirements of Section 101.

235 SUBJECT SOLID WASTE INCINERATOR FACILITY: Any source that burns solid waste 

material (except sources required to have a permit under Section 3005 of the Solid Waste 

Disposal Act) from commercial, industrial or general public sources for which a NSPS has 

been promulgated.

236 TITLE V PERMIT: A permit issued, renewed, amended, or revised pursuant to Rule 207, 

TITLE V - FEDERAL OPERATING PERMIT PROGRAM.

237 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY (EPA): The Administrator or 

appropriate delegee of the United States Environmental Protection Agency.

238 VOLATILE ORGANIC COMPOUND (VOC): For the purposes of this rule, “volatile organic 

compound” has the same meaning as in Rule 101—GENERAL PROVISIONS AND

DEFINITIONS. 

239 VOLUNTARY EMISSIONS CAP: An optional federally enforceable emissions limit on one or 

more emissions unit(s) which a source assumes in order to avoid an applicable federal 

requirement. The source remains subject to all other applicable federal requirements.

300 STANDARDS

301 TIMING FOR SUBMITTAL OF A COMPLETE TITLE V PERMIT APPLICATION:

301.1 Application Submittal for Existing Stationary Sources: The owner or operator of a 

stationary source subject to the requirements of this rule and commencing operation 

on or prior to September 5, 1995 shall submit to the Air Pollution Control Officer a 

complete permit application for a Title V permit to operate by September 5, 1996 or at 

an earlier date if required by the Air Pollution Control Officer. The owner or operator of 

a stationary source with potential to emit at or above the major source trigger levels 

but with actual emissions below the following emission levels for each pollutant shall 

submit to the Air Pollution Control Officer a complete application for Title V permit to 

operate no later than June 30, 2001:

a. Less than 12.5 tons per year or half Title I of the Federal Clean Air Act major 

source thresholds corresponding the nonattainment designation of the

District, whichever is lower, of nitrogen oxides or volatile organic compounds;

b. Less than 50 tons per year or half the major source thresholds listed in 40 

CFR Part 52 which corresponds to the nonattainment designation of the 

District, whichever is lower, of PM10 or sulfur dioxide;
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207-10 April 26, 2001

c. Less than 50 tons per year or half the major source thresholds listed in 40 

CFR Part 51 which corresponds to the nonattainment designation of the 

District, whichever is lower, of carbon monoxide;

d. Less than 7 tons per year of any single hazardous air pollutant; or

e. Less than 15 tons per year of any combination of hazardous air pollutants.

For purpose of this subsection, actual emissions shall be the maximum total annual 

emissions from all permitted equipment at the stationary source during the maximum 

12 month period from January 1992 up to September 5, 1995 as calculated by the 

District detailing throughputs of process materials, throughputs of materials stored and 

usage of materials.

301.2 Application Submittal for New Stationary Sources Commencing Operation

After September 5, 1995: The owner or operator of a new stationary source which 

becomes subject to the requirements of this rule shall submit to the Air Pollution 

Control Officer a complete Title V permit application for a Title V permit to operate 

within 12 months of commencing operation.

301.3 Application Submittal for Modified Stationary Sources: The owner or operator of 

an existing stationary source which becomes subject to the requirements of this Rule 

because of modifications to its operation shall submit to the Air Pollution Control 

Officer a complete Title V permit application for a Title V permit to operate within 12 

months of commencing modified operation.

301.4 Application Submittal for Renewal: The owner or operator of a stationary source 

shall submit to the Air Pollution Control Officer a complete Title V permit application 

for renewal no later than 12 months prior to the expiration date of the Title V permit.

301.5 Application Submittal for Phase II Acid Rain Facilities: The owner or operator of a 

Phase II Acid Rain Facility shall additionally submit to the Air Pollution Control Officer 

a standard acid rain permit application and forms required by 40 CFR Part 72 no later 

than January 1, 1996 for initial Phase II acid rain SOx permits and no later than 

January 1, 1998 for initial Phase II acid rain NOX permits.

301.6 Application Submittal for Minor Title V Permit Modifications: The owner or 

operator of a the stationary source shall submit to the Air Pollution Control Officer a 

complete Title V permit application for minor Title V permit modification. The

application shall be submitted after receiving any required preconstruction permit from 

the District and before commencing operation associated with the Minor Title V permit 

modification.

301.7 Application Submittal for Significant Title V Permit Modifications: The owner or 

operator of a stationary source shall submit to the Air Pollution Control Officer a 

complete Title V permit application for Significant Title V permit modification. The 

application shall not be submitted prior to receiving any required preconstruction 

permit from the District but no later than 12 months after commencing an operation 

associated with the Significant Title V permit modification. Where an existing federally 

enforceable Title V permit condition would prohibit such change in operation or the 

stationary source is not required to obtain a preconstruction permit, the owner or 

operator must obtain a Title V permit modification before commencing operation.

301.8 Application Submittal for Acid Rain Permit Modification: A permit modification of 

the acid rain portion of the Title V permit shall be governed by regulations promulgated 

pursuant to Title IV of the Federal Clean Air Act.

301.9 Application Submittal for Existing Stationary Sources not Currently Subject to 

the Requirements of this Rule: The owner or operator of a stationary source that 

becomes subject to this Rule, because of a change in a federally enforceable permit 

term or condition, or because of EPA or District rulemaking shall submit to the Air 

Pollution Control Officer a complete Title V permit application within 12 months of the 

date of becoming subject to this Rule.

302 CORRECTING AND UPDATING OF A TITLE V PERMIT APPLICATION:

302.1 The applicant shall submit to the Air Pollution Control Officer timely updates to the 

Title V application as new requirements become applicable to the source.
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April 26, 2001 207-11

302.2 The applicant shall submit to the Air Pollution Control Officer any additional information 

necessary to correct any incorrect information in the Title V permit application upon 

becoming aware of such incorrect submittal or if the applicant is notified by the Air 

Pollution Control Officer of such incorrect submittal.

302.3 The applicant shall submit to the Air Pollution Control Officer any additional information 

relating to the Title V application within 30 days if such information is requested in 

writing by the Air Pollution Control Officer.

303 TITLE V APPLICATION SHIELD:

303.1 No stationary source may operate after the time that it is required to submit a timely 

and complete Title V application except in compliance with a Title V permit issued 

pursuant to this rule. Prior to final permitting action, an existing major stationary 

source shall not be in violation and shall not be subject to enforcement action for 

operating without a Title V permit to operate if the stationary source has complied with 

all of the following requirements:

a. The applicant has submitted to the Air Pollution Control Officer a complete 

Title V permit application in a timely manner required pursuant to Sections 

301.1 and Section 301.3;

b. The applicant continues to submit to the Air Pollution Control Officer timely 

updates to the Title V permit application required pursuant to Section 302.1;

c. The applicant submits to the Air Pollution Control Officer any additional 

information required pursuant to Sections 302.2 and 302.3; and

d. The Title V permit has not been canceled, suspended or terminated.

303.2 Title V permit expiration terminates the stationary source's right to operate unless a 

timely and complete Title V permit application for renewal has been submitted and the 

stationary source complies with subsections 303.1a, b, c, and d. The Title V permit 

will not expire until the Title V permit renewal has been issued or denied.

304 CERTIFICATION REQUIREMENTS: Any Title V application form, report, or compliance 

certification submitted pursuant to these regulations shall contain certification by a responsible 

official. The certification shall state that, based on information and belief formed after 

reasonable inquiry, the statements and information in the document are true, accurate, and 

complete.

305 TITLE V PERMIT CONTENT: A Title V permit shall contain all of the following information and 

provisions:

305.1 Standard Permit Requirements:

a. Emission Limitations and Standards: The Title V permit shall include all 

operational requirements and limitations that assure compliance with all 

applicable federal requirements. The fugitive emissions shall be included in 

the Title V permit in the same manner as stack emissions.

b. Alternative Operating Scenarios: The Title V permit shall include

conditions specifying compliance provisions for alternative operating scenarios 

pursuant to Section 308.1 if the responsible official identifies more than one 

operating scenario.

c. Referencing of Origin and Authority for Each Title V Permit Condition:

The Title V permit shall specify and reference the origin of and authority for 

each term or condition, and identify any difference in form as compared to the 

applicable federal requirement upon which the term or condition is based.

d. Listing of Conflicting Requirements: The Title V permit shall state that, 

where an applicable federal requirement of the Federal Clean Air Act is more 

stringent than an applicable federal requirement of regulations promulgated 

under Title IV of the Federal Clean Air Act, both provisions shall be

incorporated into the Title V permit and shall be enforceable by the EPA.

e. Title V Permit Duration: The duration shall be specified pursuant to Section 

306.
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207-12 April 26, 2001

f. Monitoring Requirements: The Title V permit shall contain conditions 

addressing the following requirements:

1. All emissions monitoring and analysis procedures or test methods 

required under the applicable requirements, including any procedures 

and test methods promulgated pursuant to Sections 114(a)(3) or 

504(b) (42 U.S.C. Sections 7414(a)(3) or 7661c(b) of the Federal 

Clean Air Act.

2. Where an applicable requirement does not require periodic testing or 

instrumental or noninstrumental monitoring (which may consist of 

recordkeeping designed to serve as monitoring), periodic monitoring 

sufficient to yield reliable data from the relevant time period that are 

representative of the source's compliance with the Title V permit as 

reported pursuant to Section 305.1(g) and Section 501. Such

monitoring requirements shall assure the use of terms, test methods, 

averaging periods, and other statistical conventions consistent with 

the applicable requirements;

3. As necessary, requirements concerning the use, maintenance, and 

where appropriate, installation of monitoring equipment or methods; 

and

4. Compliance certification, testing, monitoring, reporting, and

recordkeeping requirements sufficient to assure compliance with the 

terms and conditions of the Title V permit.

g. Recordkeeping Requirements: The Title V permit shall including conditions 

for any applicable recordkeeping requirements including those specified in 

Section 502.

h. Reporting Requirements: The Title V permit shall include conditions for any 

applicable reporting requirements including those specified in Section 501.

i. Title IV Sources: A permit condition prohibiting emissions exceeding any 

allowances that the source lawfully holds under Title IV of the Federal Clean 

Air Act or the regulations promulgated thereunder which includes the

following:

1. No Title V permit revision shall be required for increases in emissions 

that are authorized by allowances acquired pursuant to the acid rain 

program, provided that such increases do not require a Title V permit 

revision under any other applicable requirement;

2. No limit shall be placed on the number of allowances held by the 

stationary source. The stationary source may not, however, use 

allowances as a defense to noncompliance with any other applicable 

requirement; and

3. Any such allowances shall be accounted for according to the

procedures established in regulations promulgated under Title IV of 

the Federal Clean Air Act.

j. Severability: A severability clause

k. Permit Compliance Provisions: A provision in the Title V permit stating the 

following:

1. The permittee must comply with all conditions of the Title V permit.

2. It shall not be a defense for a permittee in an enforcement action that 

it would have been necessary to halt or reduce the permitted activity 

in order to maintain compliance with the conditions of the Title V 

permit.

3. The Title V permit may be modified, revoked, reopened, and

reissued, or terminated for cause.

4. The permittee shall furnish to the Air Pollution Control Officer, within 

a reasonable time, any information that the Air Pollution Control 

Officer may request in writing to determine whether cause exists for 

modifying, revoking and reissuing, or terminating the permit pursuant 

to Section 411 or to determine compliance with the Title V permit. 
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April 26, 2001 207-13

Upon request, the permittee shall also furnish to the Air Pollution 

Control Officer copies of records required to be kept by the Title V 

permit conditions or, for information claimed to be confidential, the 

permittee may furnish such records directly to the EPA along with a 

claim of confidentiality.

5. Noncompliance with any Title V permit condition is grounds for Title 

V permit termination, revocation and reissuance, modification,

enforcement action, or denial of the Title V permit renewal

application. Any violation of the Title V permit shall also be a 

violation of Rule 207.

6. A pending Title V permit action or notification or anticipated

noncompliance does not stay any permit condition.

7. The Title V permit does not convey any property rights of any sort, or 

any exclusive privilege.

8. The Title V permit shall prohibit emissions exceeding any allowances 

that the stationary source lawfully holds under Title IV of the Federal 

Clean Air Act or the regulations promulgated thereunder.

305.2 Enforceability of Title V Permit Conditions: The Air Pollution Control Officer shall 

specify in Title V permits all conditions which are federally enforceable.

305.3 Inspection and Entry Requirements: A provision for inspection and entry

requirements pursuant to Section 413.1.

305.4 Schedule of Compliance: A provision for submitting a schedule of compliance 

pursuant to Section 413.2.

305.5 Progress Reports: A provision for submitting progress reports pursuant to Section 

413.3.

305.6 Compliance Certification: A provision for compliance certification pursuant to 

Section 413.4.

305.7 Payment of Fees: A Title V permit shall contain a condition requiring the stationary 

source to pay appropriate fees in accordance with Rule 301, PERMIT FEES -

STATIONARY SOURCE. The condition shall require that the Title V permit shall be 

revoked if fees are not paid.

306 TITLE V PERMIT TERM: A Title V permit shall have a 5-year fixed term from the date of 

issuance. The Title V permit shall have a new 5-year fixed term from the date of final action on 

reopening if the responsible official chooses to submit to the District a complete Title V 

application for renewal upon reopening of the Title V permit pursuant to Sections 411 or 412 

and the Title V permit is renewed according to the administrative procedures listed in Sections 

401 through 408.

307 TITLE V PERMIT SHIELD:

307.1 Except as provided in this Rule, the District may expressly provide in the Title V 

permit a provision stating that compliance with the conditions of the Title V permit 

shall be deemed compliance with any applicable requirements as of the date of the 

Title V permit issuance, provided that:

a. The Air Pollution Control Officer either:

1. Includes and specifically identifies such requirements in the Title V 

permit; or

2. Determines in acting on the Title V permit application or revision, in 

writing, that other requirements specifically identified are not

applicable to the stationary source, and the Title V permit includes 

the determination or a concise summary thereof; and

b. The facility specifically requests a Title V permit shield and indicates the 

following:

1. Specific process units for which a shield is sought;

2. Reason that a Title V permit shield is sought; and

3. Proposed duration of the Title V permit shield.
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207-14 April 26, 2001

307.2 The Title V permit must expressly state that a Title V permit shield exists. A Title V 

permit lacking such statement is presumed to have no shield. A shield shall not apply 

to changes under Section 502(b)(1) (42 U.S.C. Section 7661a(b)(1) of the Federal 

Clean Air Act, changes under Section 308.3 or any minor Title V permit modifications 

under Section 410.

307.3 The Title V permit shield shall not alter or affect any of the following:

a. The provisions of Section 303 (42 U.S.C. Section 7603) of the Federal Clean 

Air Act, (Emergency Powers) including the authority of the EPA;

b. The applicable requirements of the acid rain program, consistent with Section 

408(a) (42 U.S.C. Section 7651g(a) of the Federal Clean Air Act;

c. The liability of an owner or operator of a stationary source for any violation of 

regulatory requirements prior to, or at the time of, Title V permit issuance;

d. The requirement of the stationary source to provide EPA with information if 

requested by EPA pursuant to Section 114 (42 U.S.C. Section 7414) of the 

Federal Clean Air Act;

e. The applicability of state or District requirements that are not applicable 

federal requirements, at the time of Title V permit issuance but which apply to 

the stationary source, such as state laws concerning toxics;

f. The applicability of any regulatory requirements that become applicable to the 

stationary source after the Title V permit issuance date; or

g. The applicability of any regulatory requirements with compliance dates after 

the Title V permit issuance date.

307.4 A request for a Title V permit shield made outside an application for initial Title V 

permit or Title V permit renewal, shall be applied for as a significant Title V permit 

modification.

308 OPERATIONAL FLEXIBILITY: The Air Pollution Control Officer shall allow changes in

operation at the stationary source without requiring a Title V permit modification. Changes 

without a Title V permit modification are not allowed for minor Title V permit modifications or 

significant Title V permit modifications. This Section shall apply to:

308.1 Alternative Operating Scenarios: The Air Pollution Control Officer shall allow the 

use of alternative operating scenarios provided that the terms and conditions 

applicable to each operating scenario are:

a. Identified by the applicant in the Title V permit application;

b. Approved by the Air Pollution Control Officer;

c. Specified in the Title V permit conditions; and

d. In compliance with all applicable District, state, and federal requirements 

including Rule 207, TITLE V - FEDERAL OPERATING PERMIT PROGRAM.

The permittee shall maintain a contemporaneous log to record each change made from one 

operating scenario to another.

308.2 Voluntary Emission Cap: The Air Pollution Control Officer shall allow permit terms 

and conditions for emissions trading solely to meet a federally enforceable emissions 

cap independent of all other applicable federal requirements and District requirements 

within the stationary source if all existing emission limits and performance standards 

for emissions units and operations remain in effect, and the terms and conditions of 

the emissions cap are:

a. Identified by the applicant in the Title V permit application;

b. Approved by the Air Pollution Control Officer as terms and conditions that 

include replicable procedures that ensure trades are quantifiable and

enforceable;

c. Specified in the Title V permit conditions; and

d. In compliance with all applicable District, State, and federal requirements.

Emissions trading shall not be allowed if it involves a significant Title V permit modification as 

defined pursuant to Section 233. The permittee shall provide a written notice to the Air 

Pollution Control Officer and EPA 30 days in advance for a change in operation that is allowed 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

April 26, 2001 207-15

under Section 308.2. The notice shall describe the change in operation, identify the emissions 

unit which will be affected, the date on which the change will occur and the duration of the 

change, any change in emission of any air pollutant, whether regulated or not, and any new 

emissions of any air pollutant not emitted before the change, whether regulated or not and 

description of how the increases and decreases will comply with the terms of the Title V 

permit. The Air Pollution Control Officer shall not allow the emissions trade if one or more of 

the above conditions is not satisfied.

308.3 Contravening an Express Permit Condition: The owner or operator of a stationary 

source shall be allowed to make a change in operations that contravenes a Title V 

permit condition addressing an applicable federal requirement if the Air Pollution 

Control Officer receives written notice from the permittee at least 30 days before 

making the changes and if all of the following conditions are met:

a. The change does not cause or allow any exceedance of any emission 

limitation or emission standard which limits the quantity, rate, or

concentration of emissions of regulated air pollutants on a continuous basis, 

including any requirement relating to the operation or maintenance of a facility 

or emission unit to assure continuous emission reduction and any design, 

equipment work practice or operational standard. The following changes are 

operational flexibility changes and may be made if they meet the

requirements of Section 308. Example of such change includes but is not 

limited to the following:

1. Change in the supplier of similar raw materials, fuels, or other

coatings.

2. Change in the sequence of the process.

3. Change in the method of raw material addition.

4. Change in the method for product packaging.

5. Lengthening a paint drying oven to provide additional curing time.

b. The change is not a modification under any provision of Rule 202, NEW 

SOURCE REVIEW, or Rule 203, PREVENTION OF SIGNIFICANT

DETERIORATION or is not a significant Title V permit modification as defined 

in Section 233.

c. The change does not cause or allow any exceedance of any standard of 

performance that requires continuous emission reduction, including any

requirement relating to the operation or maintenance of a facility or emission 

unit to assure continuous emission reduction.

d. The written notice is clearly marked as a request for operational flexibility 

under this Section and includes the following information: 

1. A description of the change.

2. The date on which the change will occur and any change in

emissions of any air pollutant.

3. Any emissions of any pollutant not emitted before the change;

4. Any Title V permit term or conditions that will no longer be

applicable.

e. The Air Pollution Control Officer does not provide the responsible official with a 

written denial of the request for operational change within 30 days of receipt of 

the request for operational change.

f. Such change does not violate applicable requirements or contravene federally 

enforceable permit terms and conditions that are monitoring (including test 

methods), recordkeeping, reporting, or compliance certification requirements.

The owner or operator shall not implement the proposed change if the Air Pollution 

Control Officer objects in writing to the proposal within the 30 day notice period. The 

notice period shall commence when the proposal is received by the Air Pollution 

Control Officer. The Air Pollution Control Officer shall object to the contravening of an 

express permit condition if any of the above conditions is not satisfied.
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207-16 April 26, 2001

400 ADMINISTRATIVE REQUIREMENTS

The requirements of Sections 401 through 408 shall apply to initial Title V permits, Title V permit 

renewals, and minor and significant Title V permit modifications. No Title V permit, Title V permit 

modification, or renewal shall be issued until the requirements of Sections 305, 401, 403 (except for 

changes qualifying for minor Title V permit modification procedures), 404, and 405 are met. 

Modifications to the acid rain section of the Title V permit shall be governed by the 40 CFR Part 72 

acid rain regulations or the EPA approved equivalent District regulations.

401 COMPLETE APPLICATION: The Air Pollution Control Officer shall determine whether the 

application is complete no later than 60 days after receipt of the application. If the Air Pollution 

Control Officer 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 re-submittal of 

the application, a new 60-day period to determine completeness shall begin. Completeness of 

an application or re-submitted application shall be evaluated pursuant to the requirements 

specified in the District's "LIST AND CRITERIA" which identifies information required of an 

applicant seeking a permit (authority) to construct or a permit to operate from the District. The 

Air Pollution Control Officer shall notify the applicant in writing of the decision on the 

application's completeness. If the Air Pollution Control Officer does not notify the applicant in 

writing within 60 days of application submittal that the application is incomplete, then the 

application shall be deemed complete.

402 PRELIMINARY DECISION: Following acceptance of an application as complete, the Air 

Pollution Control Officer shall perform the evaluation required to determine compliance with all 

applicable federal requirements and make a preliminary written decision as to whether a Title V 

permit should be approved or denied.

403 PUBLICATION AND PUBLIC COMMENT, PRELIMINARY DECISION

403.1 Within ten (10) calendar days following the preliminary decision, the Air Pollution 

Control Officer shall publish in at least one newspaper of general circulation in the 

District a notice stating the preliminary decision of the Air Pollution Control Officer, 

noting how the pertinent information can be obtained, and inviting written public 

comments. The notice shall also be given to persons on a mailing list developed by 

the District, including those who request in writing to be on the mailing list and by 

other means (such as the District's Website, community groups, public meeting) when 

necessary to ensure that adequate notice is given.

403.2 The notice shall identify all of the following:

a. The name and address of the affected stationary source;

b. The name and address of the permittee;

c. The name and address of the District;

d. The activity or activities involved in the permit action;

e. The emissions change involved in any Title V permit modification;

f. The name, address, and telephone number of a person from whom interested 

persons may obtain additional information, including copies of the draft Title V 

permit, the Title V permit application, and all relevant supporting materials. 

Information submitted by the source which contains trade secrets shall be 

handled in accordance with Section 6254.7 of the California Government 

Code, and with relevant sections of the Administrative Code of the State of 

California;

g. A brief description of the comment procedures; and

h. The time and place of any hearing that may be held, including a statement of 

procedures to request a hearing (unless a hearing has already been

scheduled). 

403.3 The Air Pollution Control Officer shall provide at least 30 days for public comment and 

shall give notice of any public hearing at least 30 days in advance of the hearing.

403.4 The Air Pollution Control Officer shall keep a record of the commenters and also of the 

issues raised during the public comment period. All public comments received by the 

District during the public comment period shall be available to the public for review 
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April 26, 2001 207-17

upon request.

403.5 The Air Pollution Control Officer shall provide a statement that sets the legal and 

factual basis for the draft Title V permit conditions (including references to the 

applicable statutory or regulatory provisions). The Air Pollution Control Officer shall 

send this statement to EPA and to any other person who requests it.

404 TRANSMITTING INFORMATION TO EPA:

404.1 The Air Pollution Control Officer shall transmit to EPA a copy of each Title V permit 

application or summary (including any Title V permit application for modification), each 

proposed Title V permit, and each final Title V permit, unless EPA waives this 

requirement for specified categories of sources.

405 EPA OBJECTION

405.1 The Air Pollution Control Officer shall not issue the Title V permit if EPA objects in 

writing to its issuance within 45 days from receipt of the proposed Title V permit and 

all necessary supporting information.

405.2 If the Air Pollution Control Officer and the applicant do not receive a written objection 

from EPA within 45 days of the notice provided pursuant to Section 404.1, describing 

the terms and conditions that the Title V permit shall include to respond to EPA's 

objection, the Air Pollution Control Officer shall issue the Title V permit.

405.3 If the Air Pollution Control Officer receives a written objection from EPA, the Air 

Pollution Control Officer shall revise and submit a proposed Title V permit in response 

to EPA objection no later than 90 days from EPA's objection date.

406 PUBLIC OBJECTION

406.1 If EPA does not object in writing under Section 405, any person may petition the EPA 

within 60 days after the expiration of the EPA's 45-day review period to make such 

objection.

406.2 Any such petition shall be based only on objections to the Title V permit that were 

raised with reasonable specificity during the public comment period provided for in 

Section 403, unless the petitioner demonstrates that it was impracticable to raise 

such objections within such period, or that the grounds for such objection arose after 

the end of the review period.

406.3 If the Air Pollution Control Officer receives a written objection from EPA as a result of a 

petition filed under this Section, the Air Pollution Control Officer shall not issue the 

Title V permit until EPA's objection has been resolved, except that a petition for review 

does not stay the effectiveness of the Title V permit if the Title V permit was issued 

after the end of the 45-day review period and prior to an EPA objection.

406.4 If the Air Pollution Control Officer has issued the Title V permit prior to receiving a 

written objection from EPA pursuant to objections raised under this Section, the Title 

V permit may be reopened for cause by EPA pursuant to Section 412. If EPA notifies 

the Air Pollution Control Officer to modify, terminate, or revoke the Title V permit, the 

Air Pollution Control Officer shall revise the Title V permit and issue a revised Title V 

permit that satisfies EPA's objection. The Air Pollution Control Officer shall revise and 

submit a proposed Title V permit in response to EPA objection no later than 90 days 

from the EPA objection date.

406.5 In any case, the source will not be in violation of the requirement to have submitted a 

timely and complete Title V permit application.

407 FINAL ACTION ON TITLE V PERMITS:

407.1 New Stationary Source: The Air Pollution Control Officer shall take final action on 

the Title V permit application for a new stationary source commencing operation after 

September 5, 1995 within 18 months after receiving a complete application. 

407.2 Existing Stationary Sources: The Air Pollution Control Officer shall take final action 

on one-third of the Title V permit applications received from existing stationary sources 

commencing operation before September 5, 1995 and another one-third each year 
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207-18 April 26, 2001

after September 5, 1995, and shall take final action on all Title V permit applications 

by September 5, 1998.

407.3 Early Reduction under Section 112(i)(5) (42 U.S.C. Section 7412(i)(5) of the 

Federal Clean Air Act: The Air Pollution Control Officer shall take final action within 9 

months after receiving a complete application for early reduction under Section 

112(i)(5) (42 U.S.C. Section 7412(i)(5) of the Federal Clean Air Act.

407.4 Administrative Title V Permit Amendments: The Air Pollution Control Officer shall 

take final action within 60 days after receiving a request for administrative Title V 

permit amendments.

407.5 Minor Title V Permit Modifications: The Air Pollution Control Officer shall take final 

action within 90 days after receiving a complete application for minor Title V permit 

modification or 15 days after the end of EPA's 45-day review period, whichever is later.

407.6 Significant Title V Permit Modifications: The Air Pollution Control Officer shall take 

final action within 18 months after receiving a complete application for significant Title 

V permit modification.

407.7 Phase II Acid Rain Sources: The Air Pollution Control Officer shall take final action 

on Title V applications for sources subject to phase II of the acid rain program in 

accordance with the deadlines set forth in Title IV of the Federal Clean Air Act and the 

regulations promulgated thereunder.

407.8 Title V Permit Renewal: The Air Pollution Control Officer shall take final action within 

12 months after receiving a complete application for Title V permit renewal.

407.9 Reopening of Title V Permit for Cause Due to a New Applicable Federal 

Requirement: The Air Pollution Control Officer shall take final action on a Title V 

permit reopened for cause because new requirements under the Federal Clean Air Act 

became applicable to the stationary source no later than 18 months after the

promulgation of the applicable federal requirement.

407.10 Modified Stationary Sources: The Air Pollution Control Officer shall take final action 

on Title V applications from an existing stationary source which becomes subject to 

the requirements of this Rule because of modification to its operation within 18 months 

of receiving the complete Title V application.

408 NOTIFICATION AND PUBLICATION OF FINAL ACTION: The Air Pollution Control Officer 

shall provide written notice of the final action to the permittee and the EPA and shall publish 

such notice in a newspaper of general circulation in the District and shall make the notice and 

all supporting documents available for public inspection at the Air Pollution Control District's 

office.

409 ADMINISTRATIVE TITLE V PERMIT AMENDMENTS:

409.1 Within 60 days of receiving a written request for administrative Title V permit 

amendments, the Air Pollution Control Officer shall:

a. Take final action on the request incorporating the administrative amendments 

in the Title V permit without providing a notice to the public or affected states 

provided that the Air Pollution Control Officer designates any Title V permit 

revisions as having been made pursuant to this Section; or

b. Determine that the requested amendments do not meet the Administrative 

Title V permit amendments criterias and notify the applicant in writing.

409.2 The Air Pollution Control Officer shall submit a copy of the revised Title V permit to the 

applicant and EPA.

409.3 The stationary source may implement any such changes addressed in the request 

immediately upon submittal of the request.

410 MINOR TITLE V PERMIT MODIFICATIONS: The Air Pollution Control Officer shall take action 

on applications for minor Title V permit applications as follows:

410.1 EPA Notification: Within 5 business days after receiving a complete application for 

modification, the Air Pollution Control Officer shall notify EPA in writing of the

requested Title V permit modification.
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April 26, 2001 207-19

410.2 EPA Review: The Air Pollution Control Officer shall allow 45-days for EPA to review 

the Title V permit modification.

410.3 Final Action on Application for Minor Title V permit Modification: Within 90 

days after the Air Pollution Control Officer's receipt of the application for minor Title V 

permit modifications or 15 days after the end of the EPA's 45-day review period, 

whichever is later, the Air Pollution Control Officer shall:

a. Issue the Title V permit modification as proposed;

b. Deny the modification application and notify the applicant of reason for such 

action;

c. Determine that the requested modification does not meet the minor

modification definition and review under the significant Title V permit

modification procedures; or 

d. Revise the draft Title V permit modification and send the revised version to 

EPA.

410.4 Source Ability to Make Changes: The applicant may make the proposed changes at 

the stationary source as soon as the applicant has filed an application for Title V minor 

permit modification with the Air Pollution Control Officer providing that the applicant 

has received the required preconstruction permit from the District. After the applicant 

makes the changes allowed by the preceding sentence, and until the Air Pollution 

Control Officer takes final action on the application for minor Title V permit modification 

pursuant to Section 410.3, the stationary source must comply with both the applicable 

requirements governing the change and the proposed Title V permit terms and 

conditions. During this time period it seeks to modify. However, if the stationary 

source fails to comply with its proposed Title V permit terms and conditions during this 

time period, the existing Title V permit terms and conditions it seeks to modify may be 

enforced against it.

411 REOPENING OF TITLE V PERMIT FOR CAUSE: The Air Pollution Control Officer shall reopen 

a Title V permit under the following circumstances:

411.1 To include any new applicable federal requirements that become effective three years 

or more before the Title V permit renewal date;

411.2 To include any new requirements that become applicable to acid rain sources under 

the acid rain program, such as nitrogen oxides requirements or excess emissions 

requirements;

411.3 If the Air Pollution Control Officer or EPA determine that the Title V permit contains a 

material mistake or inaccurate statements were made in establishing the Title V 

permit conditions.

411.4 If the Air Pollution Control Officer or EPA determine that the Title V permit must be

revised or revoked to assure compliance with applicable federal requirements.

The Air Pollution Control Officer shall notify the permittee at least 30 days prior to reopening 

the Title V permit. Proceedings to reopen and reissue the Title V permit for cause shall be 

consistent with the administrative procedures listed in Sections 401 through 408 of this rule 

and shall affect only those parts of the Title V permit for which cause to reopen exists.

412 REOPENING OF TITLE V PERMIT FOR CAUSE BY EPA: If the Air Pollution Control Officer 

receives a written request from EPA to terminate, modify, or revoke and reissue a Title V 

permit, then:

412.1 The Air Pollution Control Officer shall, within 90 days after receipt of a written 

notification from EPA to reopen the Title V permit, forward to EPA a proposed 

determination of modification, termination, or revocation and reissuance, as

appropriate. The EPA may extend the 90 day-period for an additional 90 days if a new 

or revised Title V permit application is necessary or if the Air Pollution Control Officer 

must require the responsible official to submit additional information.

412.2 If the Air Pollution Control Officer does not receive a written objection from EPA (or 

does not additionally revise the Title V permit because of public comments) within 90 

days after the Air Pollution Control Officer has submitted the revised Title V permit to 
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207-20 April 26, 2001

EPA pursuant to Section 412.1, the Air Pollution Control Officer shall issue the Title V 

permit as proposed.

412.3 If the Air Pollution Control Officer receives a written objection from EPA after

submitting a response to EPA pursuant to Section 412.1, the Air Pollution Control 

Officer shall, within 90 days from the receipt of the EPA objection, resolve any 

objection that EPA makes and terminate, modify, or revoke and reissue the Title V 

permit in accordance with the EPA's objection.

412.4 If the Air Pollution Control Officer fails to submit a proposed determination pursuant to 

Section 412.1 or fails to resolve any objection pursuant to Section 412.3, EPA may 

terminate, modify, or revoke and reissue the Title V permit after taking the following 

actions:

a. Providing at least 30 days notice to the responsible official in writing of the 

reasons for any such action. This notice may be given during the procedures 

in Sections 412.1 through 412.4; and

b. Providing the permittee an opportunity for comment on the EPA's proposed 

action and an opportunity for a hearing.

The Air Pollution Control Officer shall comply with the notification requirements for the public 

and affected states listed in Sections 403 through 404. 

413 COMPLIANCE REQUIREMENTS: A stationary source shall comply with all of the following:

413.1 Inspection and Entry Requirements: Upon presentation of credentials and other 

documents as may be required by law, the permittee shall allow the Air Pollution 

Control Officer or an authorized representative to perform all of the following:

a. Enter upon the stationary source's premises where a Title V source is located 

or emissions related activity is conducted, or where records must be kept 

under the conditions of the Title V permit;

b. Have access to and copy, at reasonable times, any records that must be 

kept under the conditions of the Title V permit;

c. Inspect at reasonable times the stationary source, equipment (including 

monitoring and air pollution control equipment), practices, operations

regulated or required under the Title V permit; and

d. As authorized by the Federal Clean Air Act, sample or monitor at reasonable 

times substances or parameters for the purpose of assuring compliance with 

the Title V permit conditions or applicable federal requirements.

413.2. Schedule of Compliance: The compliance schedule shall contain a compliance plan 

that contains the following:

a. A description of the compliance status of the stationary source with respect 

to all applicable requirements.

b. A description as follows:

1. For applicable requirements with which the source is in compliance, 

a statement that the source will continue to comply with such 

requirements.

2. For applicable requirements that will become effective during the 

Title V permit term, a statement that the source will meet such 

requirements on a timely basis. A statement that the source will 

meet in a timely manner applicable requirements that become 

effective during the Title V permit term shall satisfy this provisions, 

unless a more detailed schedule is expressly required by the

applicable requirements.

3. For requirements for which the source is not in compliance at the 

time of the Title V permit issuance, a narrative description of how the 

source will achieve compliance with such requirements.

4. A schedule of compliance for sources that are not in compliance with 

all applicable requirements at the time of Title V permit issuance. 

Such schedule shall include a schedule of remedial measures, 

including an enforceable sequence of actions with milestones, 
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April 26, 2001 207-21

leading to compliance with any applicable requirements for which the 

source will be in noncompliance at the time of Title V permit 

issuance. This compliance schedule shall resemble and be at least 

as stringent as that contained in any judicial consent decree or 

administrative order to which the source is subject. Any such 

schedule of compliance shall be supplemental to, and shall not 

sanction noncompliance with, the applicable requirements on which 

it is based.

c. A schedule for submission of certified progress reports no less frequently than 

every 6 months for sources required to have a schedule of compliance to 

remedy violations.

d. The compliance plan content requirements specified in this paragraph shall 

apply and be included in the acid rain portion of a compliance plan for an 

affected source, except as specifically superseded by regulations

promulgated under Title IV of the Federal Clean Air Act with regard to the 

schedule and method(s) the source will use to achieve compliance with the 

acid rain emissions limitations.

413.3 Progress Reports: The permittee shall submit to the Air Pollution Control Officer 

progress reports on any compliance schedule in the Title V permit at least every six 

months or more frequently if required by an applicable federal requirement. The 

progress reports must be certified by the responsible official consistent with Section 

304 and shall contain all of the following:

a. Dates for achieving the activities, milestones, or compliance required in the 

schedule of compliance, and dates when such activities, milestones or 

compliance are achieved; and

b. An explanation of why any dates in the schedule of compliance were not or 

will not be met, and any preventive or corrective measures adopted.

413.4 Compliance Certification: The permittee shall submit to the Air Pollution Control 

Officer and EPA on an annual basis, unless required more frequently by additional 

applicable federal requirements such as Section 114(a)(3) and 504(b) (42 U.S.C. 

Sections 7414(a)(3) and 7661c(b) of the Federal Clean Air Act, a certification of 

compliance by a responsible official with all terms and conditions contained in the Title 

V permit, including emission limitations, standards, or work practices. The

compliance certification shall include the following:

a. The identification of each term or condition of the Title V permit that is the 

basis of the certification;

b. The compliance status and whether compliance was continuous or

intermittent;

c. The method(s) used for determining the compliance status of the source, 

currently and over the reporting period;

d. Such other facts as the Air Pollution Control Officer may require to determine 

the compliance status of the source; and

e. In accordance with Section 305, a method for monitoring the compliance of 

the stationary source with its emissions limitations, standards, and work 

practices.

414 EMERGENCY PROVISIONS

414.1 Effect of an Emergency: An emergency constitutes an affirmative defense to an 

action brought for noncompliance with such technology based emission limitations if 

the conditions of Section 414 are met.

414.2 Affirmative Defense of an Emergency: The affirmative defense of an emergency 

shall be demonstrated through properly signed, contemporaneous operating logs, or 

other relevant evidence that:

a. An emergency occurred and that the permittee can identify the cause(s) of 

the emergency;

b. The permitted facility was at the time being properly operated;

c. During the period of the emergency the permittee took all reasonable steps to 

minimize levels of emissions that exceeded the emission standards, or other 
SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

207-22 April 26, 2001

requirements in the Title V permit;

d. The permittee submitted notice of the emergency to the Air Pollution Control 

Officer within 2 working days of the time when emissions limitations were 

exceeded due to the emergency. The notice must contain a description of 

the emergency, and corrective actions taken.

414.3 Burden of Proof: In any enforcement proceedings, the permittee seeking to

establish the occurrence of an emergency has the burden of proof.

500 REPORTING AND RECORDKEEPING

501 REPORTING REQUIREMENTS: The permittee must comply with the following:

501.1 The permittee must submit reports of any required monitoring at least every 6 months. 

 All instances of deviations from Title V permit conditions must be clearly identified in 

such reports. All required reports must be certified by a responsible official consistent 

with Section 304.

501.2 The permittee must notify the Air Pollution Control Officer of any occurrence which 

constitutes an emergency as defined in Section 212 as soon as reasonably possible, 

but no later than one hour after its detection. If the emergency occurs when the Air 

Pollution Control Officer cannot be contacted, their report of the emergency shall be 

made at the commencement of the next regular working day. The notification shall 

identify the time, specific location, equipment involved, and to the extent known the 

cause(s) of the occurrence.

501.3 The permittee shall report within 24 hours of detection any other deviations from the 

Title V permit conditions not attributable to emergency.

502 RECORDKEEPING REQUIREMENTS:

502.1 The permittee shall maintain on site, records of operation for all emissions units 

included in the Title V permit. The records shall contain all of the following information 

and shall be made available to the Air Pollution Control Officer and EPA for review 

upon request:

a. Monitoring Records:

1. The date, place as defined in the Title V permit, and time of sampling 

or measurements;

2. The date(s) analyses were performed;

3. The company or entity that performed the analyses;

4. The analytical techniques or methods used;

5. The results of such analyses; and

6. The operating conditions existing at the time of sampling or

measurement.

502.2 Recordkeeping for process weight, fuel usage, and operating hours as specified in the 

Title V permit conditions.

502.3 Retention of Records: All required monitoring data and support information must be 

kept by the stationary source for a period of at least 5 years from the date of the 

monitoring sample, measurement, report, or application. Support information includes 

all calibration and maintenance records and all original strip-chart recording for 

continuous monitoring instrumentation, and copies of all reports required by the Title V 

permit.