### REGULATION 2 PERMITS RULE 2 NEW SOURCE REVIEW

INDEX

**2-2-100 GENERAL** 

2-2-101 Description 2-2-110 Exemption, Temporary Replacement 2-2-111 Exemption, PSD Monitoring 2-2-112 Exemption, Emissions From Abatement Equipment 2-2-113 Deleted June 15,1994

**2-2-200 DEFINITIONS** 

2-2-201 Emission Reduction Credit 2-2-202 Baseline Area, PSD 2-2-203 Baseline Concentration, PSD 2-2-204 Baseline Date, PSD 2-2-205 Baseline Period, PSD 2-2-206 Best Available Control Technology (BACT) 2-2-207 California Coastal Waters 2-2-208 CEQA 2-2-209 Class I Areas, PSD 2-2-210 Complete Application 2-2-211 Contiguous Properties 2-2-212 Cumulative Increase 2-2-213 EIR 2-2-214 Emission Offsets 2-2-215 Facility 2-2-216 Feasible 2-2-217 Federal Land Manager 2-2-218 Federally Enforceable 2-2-219 Impact Area 2-2-220 Major Facility 2-2-221 Major Modification of a Major Facility 2-2-222 Modeling, PSD 2-2-223 Modified Source or Facility 2-2-224 Net Air Quality Benefit 2-2-225 New Source 2-2-226 Organic Compound 2-2-227 Organic Compound, Non-Precursor (NPOC) 2-2-228 Organic Compound, Precursor (POC) 2-2-229 Particulate Matter (PM) 2-2-230 PM10 2-2-231 Point of Maximum Ground Level Impact 2-2-232 Prevention of Significant Deterioration (PSD) Increments 2-2-233 Significant Air Quality Impacts, PSD 2-2-234 Source 2-2-235 Year, Month, and Day 2-2-236 Hazardous Air Pollutant 2-2-237 Major Facility Review (MFR)

Bay Area Air Quality Management District June 15, 1994

2-2- 12-2-238 Potential to Emit

2-2-239 Regulated Air Pollutant 2-2-240 Best Available Retrofit Control Technology (BARCT) 2-2-241 Replacement Source 2-2-242 Contemporaneous 2-2-243 Reasonably Available Control Technology (RACT)

**2-2-300 STANDARDS** 

2-2-301 Best Available Control Technology Requirement 2-2-302 Offset Requirements, Precursor Organic Compounds and Nitrogen Oxides 2-2-303 Offsets Requirement, PM10 and Sulfur Dioxide, NSR 2-2-304 PSD Requirement 2-2-305 Carbon Monoxide Modeling Requirement, PSD 2-2-306 Non-Criteria Pollutant Analysis, PSD 2-2-307 Denial, Failure of all Facilities to be in Compliance 2-2-308 Class I Area Requirements, PSD 2-2-309 Denial for Air Quality Related Values, PSD 2-2-310 Denial, Failure to Use BACT 2-2-311 Denial, Failure to Provide Offsets 2-2-312 Denial, Failure to Meet Permit Conditions 2-2-313 Offset Requirements, Replacement Sources of Precursor Organic Compounds and

Nitrogen Oxides, NSR 2-2-314 Federal New Source Review Applicability 2-2-315 Federal Prevention of Significant Deterioration Applicability 2-2-316 No Net Increase Status Report

**2-2-400 ADMINISTRATIVE REQUIREMENTS** 

2-2-401 Application 2-2-402 Complete Application 2-2-403 Authority to Construct 2-2-404 Authority to Construct, Preliminary Decision 2-2-405 Publication and Public Comment 2-2-406 Public Inspection 2-2-407 Authority to Construct, Final Action 2-2-408 Appeal 2-2-409 Requirements, Permit to Operate 2-2-410 Issuance, Permit to Operate 2-2-411 Permit to Operate, Final Action 2-2-412 Source Obligation, Relaxation of Enforceable Conditions 2-2-413 Public Notice, Schools 2-2-414 PSD Air Quality Analysis 2-2-415 Notice to EPA and Federal Land Managers 2-2-416 Report, PSD Increment Consumption 2-2-417 Visibility, Soils, and Vegetation Analysis 2-2-418 PSD Analysis Stack Heights 2-2-419 Permit Conditions 2-2-420 Semiconductor Fabrication Area, Annual BACT and Offset Certification 2-2-421 Offset Deferral, Annual Permit Renewal

Bay Area Air Quality Management District June 15, 1994

2-2-2**2-2-500 MONITORING AND RECORDS** 

2-2-501 PSD Pre-Construction Ambient Air Monitoring 2-2-502 PSD Post-Construction Monitoring

**2-2-600 MANUAL OF PROCEDURES** 

2-2-601 Ambient Air Quality Monitoring 2-2-602 Good Engineering Practice (GEP) Stack Height 2-2-603 PSD Air Quality Evaluation Procedure 2-2-604 Emission Increase Calculation Procedures, New or Modified Sources 2-2-605 Emission Calculation Procedures, Emission Reduction Credits 2-2-606 Emission Calculation Procedures, Offsets 2-2-607 Emission Calculation Procedures, Emission Reduction Credits for Mobile Sources 2-2-608 Alternate Emission Calculation Procedures, Replacement Sources

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2-2-3

### REGULATION 2

PERMITS RULE 2 NEW SOURCE REVIEW (Readopted and Renumbered July 17, 1991)

**2-2-100 GENERAL** 

**2-2-101 Description:**  This Rule shall apply to all new and modified sources which are subject

to the requirements of Regulation 2-1-301. The purpose of this Rule is to provide for the review of new and modified sources and provide mechanisms, including the use of Best Available Control Technology (BACT) and emission offsets, by which authorities to construct such sources may be granted. This rule shall comply with the no net increase requirements of Section 40919 (b) of the Health and Safety Code as demonstrated by the requirements of Section 2-2-316. The New Source Review provisions of 40 CFR 51.165 and the Prevention of Significant Deterioration provisions of 40 CFR 51.166 are hereby incorporated by reference. (Amended June 15, 1994) **2-2-110 Exemption, Temporary Replacement:**  The APCO shall exempt a person from the

requirements of Sections 2-2-301 of this Rule if the subject of the application is a temporary replacement source that will be in operation at the facility for less than three months from the date of issuance of the permit to operate or from the date of initial operation. (Amended June 15, 1994) **2-2-111 Exemption, PSD Monitoring:**  The APCO may exempt an applicant from the

requirements of subsection 2-2-414.3 provided that the applicant demonstrates by modeling to the satisfaction of the APCO that the cumulative emission increase minus the emission reduction credits from the new or modified facility would cause air quality impacts less than the following, or may exempt an applicant from the requirements of subsection 2-2-414.3 if the existing ambient air quality concentrations in the impact area are no greater than the following:

(micrograms per cubic meter, 

### μ g/m3) Carbon monoxide: 8-hr average 575 PM10: 24-hr average 10 Sulfur dioxide: 24-hr average 13 Lead: 3-month average 0.1 Mercury: 24-hr average 0.25 Beryllium: 24-hr average 0.0001 Fluorides: 24-hr average 0.25 Vinyl chlorides: 24-hr average 15 Total reduced sulfur: 1-hr average 10 Hydrogen sulfide: 1-hr average 0.2 Reduced sulfur compounds: 1-hr average 10 Nitrogen dioxide: annual average 14

(Amended June 15, 1994) **2-2-112 Exemption, Emissions From Abatement Equipment:**  The BACT requirements of

Section 2-2-301 shall not apply to emissions of secondary pollutants which are the direct result of the use of an abatement device which complies with the BACT or BARCT requirements for control of another pollutant. However, the APCO shall require the use of Reasonably Available Control Technology (RACT) for control of these secondary pollutants. (Amended June 15, 1994) **2-2-113** Deleted June 15, 1994

Bay Area Air Quality Management District June 15, 1994

2-2-4**2-2-200 DEFINITIONS** 

**2-2-201 Emission Reduction Credit:**  Except as provided by subsection 2-2-201.3 an emission

reduction, calculated in accordance with Section 2-2-605, which exceeds the emission reductions required by measures in the current Clean Air Plan approved by the BAAQMD or required by federal, state, or District laws, rules, and regulations. To qualify as an emission reduction credit, the emission reduction must be in excess of the reductions achieved by, or achievable by, the source using Reasonably Available Control Technology (RACT), and must also be real, permanent, quantifiable, and enforceable. 201.1 Unless calculated in accordance with the procedures of Section 2-2-605, that portion of an NSR emission cap, which was part of an APCO approved alternative baseline, shall not qualify as an emission reduction credit. 201.2 All emission reduction credits shall be enforceable by permit conditions in the authority to construct and permit to operate, except that, in the case of source closures where no permit is required for the source being shut down, the emission reduction credit shall be enforceable through appropriate contractual provisions in a legally binding and irrevocable written agreement in which provisions will be made expressly for the benefit of the District. 201.3 For the purpose of complying with the PSD requirements of Sections 2-2-111, 304, 305, 306, 308 of this Rule and 40 CFR 51.166, emission reduction credits shall not be adjusted for reductions required by measures in the current Clean Air Plan approved by the BAAQMD which exceed the reductions required by use of Reasonably Available Control Technology (RACT). The permanence of a closure shall be identified in a letter from the source and/or in a Banking Certificate. (Amended June 15, 1994) **2-2-202 Baseline Area, PSD:**  All intrastate Air Quality Control Regions, as defined in 40 CFR

52.21, (and every part thereof) designated as attainment or unclassifiable under 107(d)(1)(D) or (E) of the Clean Air Act in which a source establishing a baseline date would construct or would have an air quality impact equal to or greater than 1 

### μ g/m3 (annual average) of the pollutant for which the baseline date is established. **2-2-203 Baseline Concentration, PSD:**  The ambient concentration level which exists in the

baseline area at the time of establishment of the applicable baseline date. A baseline concentration is determined for each pollutant for which a baseline date is established. The baseline concentration shall include the actual emissions representative of sources in existence on the applicable baseline date. **2-2-204 Baseline Date, PSD:**  The earliest date after December 20, 1977, for sulfur dioxide and

particulate matter, or after February 8, 1988, for nitrogen dioxide, for each baseline area on which the first complete application under Section 2-2-304 is submitted or was submitted to EPA under 40 CFR 52.21. The baseline date is established for each pollutant for which PSD increments have been established. **2-2-205 Baseline Period, PSD:**  The period against which a change in emissions is to be

measured. **2-2-206 Best Available Control Technology (BACT):**  For any source or modified source,

except cargo carriers, the more stringent of: 206.1 The most effective emission control device or technique which has been successfully utilized for the type of equipment comprising such a source; or 206.2 The most stringent emission limitation achieved by an emission control device or technique for the type of equipment comprising such a source; or 206.3 Any emission control device or technique determined to be technologically feasible and cost-effective by the APCO; or 206.4 The most effective emission control limitation for the type of equipment comprising such a source which the EPA states, prior to or during the public comment period, is contained in an approved implementation plan of any state, unless the applicant demonstrates to the satisfaction of the APCO that such limitations are not achievable. Under no circumstances shall the emission control required be less stringent than the emission control required by any

Bay Area Air Quality Management District June 15, 1994

2-2-5applicable provision of federal, state or District laws, rules or regulations. The APCO shall periodically publish and update, a BACT Workbook specifying the requirements for commonly permitted sources. BACT will be determined for a source by using the workbook as a guidance document or, on a case-by-case basis, using the most stringent definition of this Section 2-2-206. **2-2-207 California Coastal Waters:**  That area between the California-Oregon border at the

Pacific Ocean and ending at the California-Mexico border at the Pacific Ocean:

thence to 42.0oN 125.5oW thence to 41.0oN 125.5oW thence to 40.0oN 125.5oW thence to 39.0oN 125.5oW thence to 38.0oN 124.0oN thence to 37.0oN 123.5oW thence to 36.0oN 122.5oW thence to 35.0oN 121.5oW thence to 34.0oN 120.5oW thence to 33.0oN 119.5oW thence to 32.5oN 118.5oW

**2-2-208 CEQA:** The California Environmental Quality Act, Public Resources Code, Section

21000, et seq. **2-2-209 Class I Areas, PSD:**  Point Reyes National Seashore and any other Class I Area under

Part C of the Clean Air Act. All other areas in the District are Class II Areas. **2-2-210 Complete Application:**  An application for an Authority to Construct a new or modified

source which contains the following: 210.1 Sufficient information for the APCO to determine the emissions from such new or modified source and to quantify emissions from the proposed source(s) of offsets. 210.2 Any information requested by the APCO in order to determine the air quality impact of such new or modified source or facility. 210.3 Fees for New and Modified Sources, as described in Regulation 3-302. 210.4 The information required by Sections 2-2-414 and 417 provided the application is subject to the PSD requirements of Sections 2-2-304, 305 or 308. 210.5 CEQA-related information which satisfies the requirements of Regulation 2-1-426. 210.6 A certification stating whether the source triggers the requirements of Section 2-2-413. 210.7 A specific designation of all information contained in the application that is asserted to be a trade secret pursuant to Section 6254.7 of the Government Code and not a public record. Such designated information shall be provided in such a manner whereby it may be easily separated from information which is not asserted to be a trade secret. The applicant shall include, for each separate portion of the application which is asserted to be a trade secret, a statement signed by a responsible representative of the applicant identifying that portion of Government Code Section 6254.7(d) upon which the assertion is based and a brief statement setting forth the basis for this assertion. (Amended November 20, 1991) **2-2-211 Contiguous Properties:**  Two or more parcels of land with a common boundary or

separated solely by a public roadway or other public right-of-way. **2-2-212 Cumulative Increase:**  The aggregate sum of all increases in emissions of any given

pollutant from a new, or modified source permitted after April 5, 1991 (unless a PSD Baseline Date is applicable), pursuant to authorities to construct or permits to operate excluding emissions from a source which has lost its permit exemption per Regulation 2-1-424. (Amended June 15, 1994) **2-2-213 EIR:**  Environmental Impact Report, as defined in Section 21061 of the Public

Bay Area Air Quality Management District June 15, 1994

2-2-6Resources Code.

**2-2-214 Emission Offsets:**  Emission reduction credits which are used to mitigate cumulative

increases of emissions. Emission offsets are emission reduction credits, from the District Emissions Bank, approved in accordance with Regulation 2, Rule 4, or contemporaneous emission reduction credits occurring after the submittal of an application for a new or modified source but prior to the issuance of the permit to operate any such source **,** calculated in accordance with Section 2-2-605. Notwithstanding any existing permit conditions, that portion of an NSR emission cap, which was based on an APCO approved alternative baseline, may not be used as a source of offsets unless the proposed reduction is calculated in accordance with procedures specified in Section 2-2-605. (Amended June 15, 1994) **2-2-215 Facility:**  Any property, building, structure or installation (or any aggregation of facilities)

located on one or more contiguous or adjacent properties and under common ownership or control of the same person that emits or may emit any air pollutant and is considered a single major industrial grouping (identified by the first two-digits of the applicable code in The Standard Industrial Classification Manual ). In addition, facilities which include cargo loading or unloading from cargo carriers other than motor vehicles shall include the cargo carriers as part of the source which receives or loads the cargo. Accordingly, all emissions from such carriers while operating in the District, or within California Coastal Waters adjacent to the District, shall be included as part of the source emissions. 215.1 For determining the cumulative increase at a facility subject to the offset requirements of Sections 2-2-302 and 303, related sources on a single property or contiguous properties, even though under different ownership, or related sources on non-contiguous properties under the same ownership shall be considered one facility. Related sources are those sources where the operation of one is dependent upon or affects the operation of the other. 215.2 Notwithstanding the definition in Section 2-2-215 above, the emissions related to cargo carriers shall not be included when determining applicability of the requirements of Sections 2-2-304, 2-2-308, 2-6-301, and 2-6-310. 0.1 For determining the cumulative increase at a facility subject to the offset requirements of Sections 2-2-302 and 303, facilities under the same ownership or entitlement to use that are located within a distance of three miles, property line to property line, shall be considered one facility if the facilities have the same first two digits in their Standard Industrial Classification codes, as determined from The Standard Industrial Classification Manual

. (Amended November 3, 1993) **2-2-216 Feasible:**  Capable of being accomplished in a successful manner within a reasonable

period of time, taking into account economic, environmental, legal, social and technological factors, not in conflict with the mandated responsibilities and duties of the District. **2-2-217 Federal Land Manager:**  With respect to any lands in the United States, the Secretary

of the department with authority over such lands. **2-2-218 Federally Enforceable:**  All limitations and conditions which are enforceable by the

Administrator of the U. S. EPA, including requirements developed pursuant to 40 CFR Parts 60 (NSPS), 61 (NESHAPS), 63 (HAP), 70 (State Operating Permit Programs) and 72 (Permits Regulation, Acid Rain), requirements contained in the State Implementation Plan (SIP) that are applicable to the District, any District permit requirements established pursuant to 40 CFR 52.21 (PSD) or District regulations approved pursuant to 40 CFR Part 51, Subpart I (NSR), and any operating permits issued under an EPA-approved program that is a part of the SIP and expressly requires adherence to any permit issued under such program. (Amended November 3, 1993) **2-2-219 Impact Area:**  The area in which a new or modified facility would have a significant air

quality impact. **2-2-220 Major Facility:**  Any facility which the APCO determines to emit, on a pollutant specific

basis, or determines will emit as a result of the issuance of an authority to construct,

Bay Area Air Quality Management District June 15, 1994

2-2-7100 tons per year or more of a specific pollutant subject to regulation under the federal Clean Air Act is a major facility for that pollutant. 220.1 Major Facility, MFR (Regulated Air Pollutants): A facility that has the potential to emit 100 tons per year or more of any regulated air pollutant. For fugitive emissions of said pollutants, only those facilities from categories listed in 40 CFR 70.2 "Definitions - Major source (2)" shall be included for determining whether the facility is a major facility. Once any facility is determined to be a major facility, all fugitive emissions from the facility shall be included in calculating the facility's emissions. 220.2 Major Facility, MFR (Hazardous Air Pollutants): A facility that has the potential to emit 10 tons per year or more of a single hazardous air pollutant or 25 tons per year or more of a combination of hazardous air pollutants, or such lesser quantity as the EPA Administrator may establish by rule. All fugitive emissions of hazardous air pollutants are included in determining a facility's potential to emit. For radionuclides, the definition of a major facility shall be specified by the EPA Administrator by rule. 220.3 Major Facility, PSD: A facility, subject to any requirement of Section 2-2-304, 305, 306, 308 or 309, which emits or has the potential to emit 100 tons per year or more of any air pollutant if, it is one of the twenty eight (28) PSD source categories listed in Section 169(1) of the federal Clean Air Act, or 250 tons per year or more for an unlisted category, (Amended November 3, 1993; Amended June 15, 1994) **2-2-221 Major Modification of a Major Facility:**  Any modification at an existing major facility

that the APCO determines will cause an increase of the facility's emissions by the following amounts or more:

POC: 40 tons per year NOx: 40 tons per year SO2: 40 tons per year PM10: 15 tons per year CO: 100 tons per year (Amended June 15, 1994) **2-2-222 Modeling, PSD:**  Estimates of ambient concentrations of pollutants based on applicable

air quality models, data bases and other requirements acceptable to the APCO. For modeling required by Sections 2-2-304 through 308 and 414, the air quality models, data bases and other requirements shall also be in accordance with the "Guideline on Air Quality Models", EPA-450/2-78-027R, July 1986 or as revised). Where an air quality impact model specified in the "Guideline on Air Quality Models" is inappropriate, the model may be modified or another model substituted provided that written approval from the Administrator of the EPA is obtained and the application is submitted for public comment in accordance with Section 2-2-405. Methods such as those outlined in the "Workbook for the Comparison of Air Quality Models", April 1977 (or as revised) shall be used to determine the comparability of air quality models. For modeling compliance with air quality standards, other than federal ambient air quality standards or federal PSD increments, applicable models must be approved by the APCO. **2-2-223 Modified Source or Facility:**  Any existing source or facility which will undergo a

physical change, change in the method of operation of, or addition to an existing facility which results or may result in either an increase, of the permitted emission level of a source, of any air pollutant subject to District control, or the emission of any such air pollutant not previously emitted in a quantity which would cause the source to fail an air toxic screening analysis performed in accordance with the current Air Toxic Risk Screening Procedure. Routine maintenance or repair or a change in ownership of itself shall not be considered a modification. Unless previously limited by a permit condition the following shall not be considered changes in method of operation: 223.1 An increase in the production rate if such increase does not exceed the operating design capacity or the actual demonstrated capacity of the facility as approved by the APCO. 223.2 An increase in the hours of operation.

Bay Area Air Quality Management District June 15, 1994

2-2-8223.3 Change in ownership. 223.4 Use of an alternative fuel or raw material if the source was capable of using such fuel or raw material prior to July 1, 1972, or had received permits to use such fuel or raw material. (Amended June 15, 1994) **2-2-224 Net Air Quality Benefit:** A net improvement of air quality as determined by the APCO

resulting from emission reduction credits impacting the same general area affected by the new or modified source and which will be consistent with reasonable further progress towards the attainment of the applicable air quality standard. (Amended June 15, 1994) **2-2-225 New Source:**  A source which meets at least one of the following criteria shall be

considered a new source: 225.1 Except sources which lose a permit exemption in accordance with Regulation 2-1-424, any source constructed or proposed to be constructed after March 7, 1979 which never had a valid District authority to construct or permit to operate. 225.2 Any source which was not in operation for a period of one year or more and did not hold a valid District permit to operate during this period of non-operation, occurring after March 7, 1979. 225.3 Any relocation of an existing source to a non-contiguous property. 225.4 Any replacement of a source, including an identical replacement of a source, occurring after March 7, 1979, regardless of when the original source was constructed. 225.5 Except as provided in Section 2-2-420, any replacement of an identifiable source within a group of sources permitted together under a single source number for the purpose of District permitting convenience. This specifically includes the replacement of identifiable pieces of pollutant emitting equipment which comprise a semiconductor fabrication area. **2-2-226 Organic Compound:**  Any compound of carbon, excluding carbon monoxide, carbon

dioxide, carbonic acid, metallic carbides or carbonates, ammonium carbonate and methane. **2-2-227 Organic Compound, Non-Precursor (NPOC):**  The following are considered organic

compound non-precursor . methylene chloride, chloropentafluoroethane (CFC-115), 1,1,1-trichloroethane, 1,1,1-trifluoro 2,2-dichloroethane (HCFC-123), 2-chloro 1,1,1,2-tetrafluoroethane (HCFC-124), trichlorofluoromethane(CFC-11), 1,1,2 trichloro 1,2,2-trifluoroethane(CFC-113), pentafluoroethane (HFC-125), 1,1,2,2-tetrafluoroethane (HFC-134), 1,1,1,2-tetrafluoroethane (HFC-134a), dichlorodifluoromethane (CFC-12), 1,1-dichloro 1-fluoroethane (HCFC-141b), 1-chloro 1,1-difluoroethane (HCFC-142b) 1,1,1-trifluoroethane (HFC-143a), 1,2-dichloro 1,1,2,2-tetrafluoroethane(CFC-114), 1,1-difluoroethane (HFC-152a) chlorodifluoromethane (HCFC-22) trifluoromethane (HFC-23); and perfluorocarbons which fall into these classes: (1) Cyclic, branched, or linear, completely fluorinated alkanes, (2) Cyclic, branched, or linear, completely fluorinated ethers with no unsaturations, (3) Cyclic, branched, or linear, completely fluorinated tertiary amines with no unsaturations, and (4) Sulfur containing perfluorocarbons with no unsaturations and with sulfur bonds only to carbon and fluorine. In addition, any compound designated as having a negligible contribution to photochemical reactivity by the U.S. Environmental Protection Agency as published in the Federal Register shall be considered a Non-Precursor Organic Compound. (Amended June 15, 1994) **2-2-228 Organic Compound, Precursor (POC):**  Any organic compound as defined in Section

2-2-226 excepting the non-precursor organic compounds defined in Section 2-2-227. **2-2-229 Particulate Matter (PM):**  Any airborne finely divided solid or liquid material with an

aerodynamic diameter smaller than 100 microns. (Amended June 15, 1994) **2-2-230 PM10:**  Particulate matter with aerodynamic diameter smaller than or equal to a nominal

10 microns. Bay Area Air Quality Management District June 15, 1994

2-2-9**2-2-231 Point of Maximum Ground Level Impact:**  The ground level geographic location where the projected air pollution concentrations for a given pollutant resulting from the new or modified facility emissions together with the background pollutant concentration for that given pollutant results in the maximum ground level pollutant concentration. The background pollutant concentration means the ambient concentration level resulting from the actual emissions of sources in existence and the projected ambient concentration levels for sources already permitted but not yet in operation. If the general public is effectively excluded from the property on which the point of maximum ground level impact is located, and the property is owned or controlled by the owner of the new or modified facility, such property shall not be considered as the point of maximum ground level impact. **2-2-232 Prevention of Significant Deterioration (PSD) Increments:**  In areas designated as

Class I, II or III, increases in pollutant concentration over the baseline concentration shall be limited to the following:

MAXIMUM ALLOWABLE INCREASE (Micrograms per cubic meter, 

### μ g/m3)

CLASS I POLLUTANT Particulate Matter:

PM10 Annual arithmetic mean 4 PM10 24-hr maximum 8 Sulfur Dioxide:

Annual arithmetic mean 2 24-hr maximum 5 3-hr maximum 25 Nitrogen Dioxide:

Annual arithmetic mean 2.5 CLASS II Particulate Matter: PM10 Annual arithmetic mean 17 PM10 24-hr maximum 30 Sulfur Dioxide:

Annual arithmetic mean 20 24-hr maximum 91 3-hr maximum 512 Nitrogen Dioxide:

Annual arithmetic mean 25 CLASS III Particulate Matter: PM10 Annual arithmetic mean 34 PM10 24-hr maximum 60 Sulfur Dioxide:

Annual arithmetic mean 40 24-hr maximum 182 3-hr maximum 700 Nitrogen Dioxide:

Annual arithmetic mean 50 For any period other than an annual period, the applicable increase may be exceeded during one such period per year at any one location. (Amended June 15, 1994) **2-2-233 Significant Air Quality Impacts, PSD:**  Ambient air concentrations, resulting from new

or modified facility emissions, that exceed any of the following levels:

SIGNIFICANT AIR QUALITY IMPACTS (Micrograms per cubic meter, 

### μ g/m3)

Bay Area Air Quality Management District June 15, 1994

2-2- 10POLLUTANT Particulate Matter:

PM10, Annual arithmetic mean 1.0

PM10, 24-hr maximum 5 Sulfur Dioxide:

Annual arithmetic mean 1.0 24-hr maximum 5 3-hr maximum 25 Nitrogen Dioxide:

Annual arithmetic mean 1.0 1-hr maximum 19 Carbon Monoxide:

8-hr maximum 500 1-hr maximum 2000 (Amended June 15, 1994) **2-2-234 Source:**  Any article, machine, equipment, operation, contrivance or related groupings

of such which may produce and/or emit air pollutants. **2-2-235 Year, Month, and Day:**  Unless otherwise defined, a year shall be any rolling 365

consecutive day period, a month shall be any rolling 31 consecutive day period and a day shall be any rolling 24 consecutive hour period. **2-2-236 Hazardous Air Pollutant:**  Any pollutant that is listed pursuant to Section 112(b) of the

federal Clean Air Act. (Adopted November 3, 1993) **2-2-237 Major Facility Review (MFR):**  Plantwide review of sources, emissions and regulatory

requirements at facilities including, but not limited to, major facilities, phase II acid rain facilities, subject solid waste incinerator facilities, designated facilities, and synthetic minor facility candidates, which are potentially subject to the permitting requirements of Regulation 2, Rule 6, and Title V of the federal Clean Air Act. (Adopted November 3, 1993) **2-2-238 Potential to Emit:**  The maximum capacity of a facility to emit a pollutant, based on its

physical and operational design. Any physical or operational limitation on the capacity of the facility to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as a part of its design only if the limitation, or the effect it would have on emissions, is federally enforceable. (Adopted November 3, 1993) **2-2-239 Regulated Air Pollutant:**  The following air pollutants are regulated:

239.1 Nitrogen oxides and volatile organic compounds; 239.2 Any pollutant for which a national ambient air quality standard has been promulgated; 239.3 Any Class I or Class II ozone depleting substance subject to a standard promulgated under Title VI of the federal Clean Air Act; 239.4 Any pollutant that is subject to any standard promulgated under Section 111 of the federal Clean Air Act; and 239.5 Any pollutant that is subject to any standard promulgated under Section 112 of the Clean Air Act. (Adopted November 3, 1993) **2-2-240 Best Available Retrofit Control Technology(BARCT):**  An emission limitation that is

based on the maximum degree of reduction achievable, taking into account environmental, energy and economic impacts by each class or category of source and has been adopted or proposed to be adopted as part of the current Clean Air Plan required by the California Clean Air Act of 1988. (Adopted June 15, 1994) **2-2-241 Replacement Source:**  An identical source or a functionally equivalent source. (Adopted June 15, 1994) **2-2-242 Contemporaneous:**  The five year period of time immediately prior to the date of

application for an authority to construct, permit to operate. (Adopted June 15, 1994) **2-2-243 Reasonably**  **Available Control**  **Technology (RACT):** For sources which are to

continue operating, RACT is the lowest emission limit that can be achieved by the

Bay Area Air Quality Management District June 15, 1994

2-2- 11specific source by the application of control technology taking into account technological feasibility and cost-effectiveness, and the specific design features or extent of necessary modifications to the source. For sources which are or will be shut-down, RACT is the lowest emission limit that can be achieved by the application of control technology to similar, but not necessarily identical categories of sources, taking into account technological feasibility and cost-effectiveness of the application of the control technology to the category of sources only and not to the shut-down source. (Adopted June 15, 1994)

**2-2-300 STANDARDS** 

**2-2-301 Best Available Control Technology Requirement:**  An applicant for an authority to

construct or a permit to operate shall apply BACT to any new or modified source: 301.1 Which results in an emission from a new source or an increase in emissions from a modified source of precursor organic compounds (POC), non-precursor organic compounds (NPOC), nitrogen oxides (NOx), sulfur dioxide (SO2), PM10 or carbon monoxide (CO) in excess of 10.0 pounds per highest day or a cumulative increase since April 5, 1991 for a modified source of 10 pounds per highest day. , or; 301.2 Which will result in a cumulative increase at the facility since December 1, 1982, in excess of any of the following daily and/or annual amounts:

**ANNUAL AVERAGE DAILY**  kg/yr (ton/yr) g/day (lb/day)

Lead 530 (0.6) 1450 (3.2) Asbestos 6 (0.007) 17 (0.04) Beryllium 0.3 (0.0004) 0.9 (0.002) Mercury 88 (0.1) 240 (0.5) Fluorides 2720 (3) 7450 (16) Sulfuric Acid Mist 6350 (7) 17400 (38) Hydrogen Sulfide 9050 (10) 24800 (55) Total Reduced Sulfur 9050 (10) 24800 (55) Reduced Sulfur Compounds 9050 (10) 24800 (55) (Amended June 15, 1994) **2-2-302 Offset Requirements, Precursor Organic Compounds and Nitrogen Oxides, NSR:** 

Except as provided by Sections 2-2-313 or 421, before the APCO may issue an authority to construct or a permit to operate for a new or modified source at a facility which emits 50 tons per year or more or will be permitted to emit 50 tons per year or more, on a pollutant specific basis, of precursor organic compounds or nitrogen oxides, , federally enforceable emission offsets shall be provided, for the emission from the new or modified source and any pre-existing cumulative increase, minus any onsite contemporaneous emission reduction credits determined in accordance with Section 2-2-605, at a 1.15 to 1.0 ratio. Before the APCO may issue an authority to construct or a permit to operate for a new or modified source at a facility which emits or will be permitted to emit more than 15 tons per year but less than 50 tons per year or more, on a pollutant specific basis, of precursor organic compounds or nitrogen oxides, emission offsets shall be provided, by the District at a 1.0 to 1.0 ratio for the emission from the new or modified source and any pre-existing cumulative increase, minus any onsite contemporaneous emission reduction credits determined in accordance with Section 2-2-605, from the Small Facility Banking Account in the District's Emissions Bank in accordance with the provisions of Regulation 2-4-414.

The APCO shall determine the total facility emissions, on a pollutant specific basis, by adding the emissions from the proposed new or modified source(s) to the most recent District Emissions Inventory, adjusted for any errors and adjusted upward for any

Bay Area Air Quality Management District June 15, 1994

2-2- 12permitted levels of emissions not currently being emitted. 302.1 Emission reduction credits of nitrogen oxides may be used to offset increased emissions of precursor organic compounds at the offset ratio specified above in Section 2-2-302.

302.2 Emission reduction credits of precursor organic compounds may be used to offset increased emissions of nitrogen oxides at the offset ratio specified above in Section 2-2-302, provided that the PSD requirements of Section 2-2-304, if applicable, are met. (Amended November 20,1991; Amended June 15, 1994) **2-2-303 Offset Requirement** 

, **PM10 and Sulfur Dioxide, NSR:** Except as provided by

Sections 2-2-313 or 421, before the APCO may issue an authority to construct or a permit to operate for a new or modified source, of PM10 or sulfur dioxide located at a Major Facility, which will result in a cumulative increase minus any contemporaneous emission reduction credits at the facility, for that pollutant, in excess of 1.0 ton per year since April 5, 1991, emission offsets shall be provided, for the emission from the new or modified source and any pre-existing cumulative increase, minus any onsite contemporaneous emission reduction credits determined in accordance with Section 2-2-605, at a 1.0:1.0 ratio or at a ratio, approved by the APCO, in accordance with subsection 2-2-303.1. 303.1 Emission reduction credits of nitrogen oxides and/or sulfur dioxide may be used to offset increased emissions of PM10 at offset ratios deemed appropriate by the APCO. A facility which emits less than 100 tons of any pollutant, subject to this section, may voluntarily provide emission offsets for all, or any portion, of their cumulative increase, at the ratio required above. (Amended November 20, 1991; Amended June 15, 1994) **2-2-304 PSD Requirement:**  In accordance with the Prevention of Significant Deterioration

provisions of 40 CFR 51.166 of the Code of Federal Regulations, the APCO shall not issue an authority to construct or a permit to operate to a: 304.1 New major facility which will emit 100 tons per year or more, if, it is one of the twenty eight (28) PSD source categories listed in Section 169(1) of the federal Clean Air Act, or 250 tons per year or more for an unlisted category, of any pollutant subject to regulation under the federal Clean Air Act unless the applicant demonstrates by modeling in accordance with Section 2-2-414 to the satisfaction of the APCO that such emissions will not interfere with the attainment or maintenance of the sulfur dioxide or nitrogen dioxide NAAQS at the point of maximum ground level impact and will not cause an exceedance of a sulfur dioxide or a nitrogen dioxide PSD increment. 304.2 Major modification of a major facility if the cumulative increase, from the PSD Baseline Date, minus the contemporaneous emission reduction credits at the facility are in excess of 40 tons per year of sulfur dioxide or nitrogen oxide unless the applicant demonstrates by modeling in accordance with Section 2-2-414 to the satisfaction of the APCO that such emissions will not interfere with the attainment or maintenance of the sulfur dioxide or nitrogen dioxide NAAQS at the point of maximum ground level impact and will not cause an exceedance of a sulfur dioxide or a nitrogen dioxide PSD increment. 304.3 Major modification of a major facility if the cumulative increase, from the PSD Baseline Date, minus the contemporaneous emission reduction credits at the facility are in excess of 15 tons per year of PM10 unless the applicant demonstrates by modeling in accordance with Section 2-2-414 to the satisfaction of the APCO that such emission will not interfere with the attainment or maintenance of the PM10 federal ambient air quality standard at the point of maximum ground level impact and will not cause an exceedance of a particulate matter PSD increment. (Amended June 15, 1994) **2-2-305 Carbon Monoxide Modeling Requirement, PSD:**  In accordance with the Prevention

of Significant Deterioration provisions of 40 CFR 51.166 of the Code of Federal Regulations, the APCO shall not issue an authority to construct or a permit to operate

Bay Area Air Quality Management District June 15, 1994

2-2- 13for: 305.1 A major facility which will emit 100 tons per year or more, if it is one of the twenty eight (28) PSD source categories listed in Section 169(1) of the federal Clean Air Act, or 250 tons per year or more for an unlisted category, of any pollutant subject to regulation under the federal Clean Air Act, unless the applicant demonstrates by modeling in accordance with Section 2-2-414, to the satisfaction of the APCO, that the net air quality impact of the cumulative increase of emissions of CO from the new or modified facility and all contemporaneous emission reduction credits to be provided by the applicant will not interfere with the attainment or maintenance of the CO NAAQS in the District or any contiguous air basin, or 1.1 The cumulative increase minus the contemporaneous emission reduction credits from the facility are less than or equal to zero. 305.2 A major modification of a major facility with an increase in excess of 100 tons per year of carbon monoxide, unless the applicant demonstrates by modeling in accordance with Section 2-2-414, to the satisfaction of the APCO, that the net air quality impact of the cumulative increase of emissions of CO from the new or modified facility and all contemporaneous emission reduction credits to be provided by the applicant will not interfere with the attainment or maintenance of the CO NAAQS in the District or any contiguous air basin, or

2.1 The cumulative increase minus the contemporaneous emission reduction credits from the facility are less than or equal to zero. (Amended June 15, 1994) **2-2-306 Non-Criteria Pollutant Analysis, PSD:**  In accordance with the Prevention of

Significant Deterioration provisions of 40 CFR 51.166 of the Code of Federal Regulations,unless the applicant has performed all analysis required by Sections 2-2-414 and 417 for the applicable pollutants, the APCO shall not issue an authority to construct or a permit to operate to a new or modified facility if the new or modified facility will emit greater than 100 tons per year of carbon monoxide, particulate matter, sulfur dioxide, precursor organic compounds or nitrogen oxides, and the cumulative increases, minus the contemporaneous emission reduction credits from the facility occurring since December 1, 1982, pursuant to authorities to construct and permits to operate, are in excess of the annual average amounts specified in subsection 2-2-301.2. (Amended June 15, 1994) **2-2-307 Denial, Failure of all Facilities to be in Compliance:**  The APCO shall deny an

authority to construct for a new major facility or a major modification of an existing major facility unless the applicant provides a list, certified under penalty of perjury, of all major facilities within the state of California owned or operated by the applicant or by any entity controlling, controlled by, or under common control with the applicant and demonstrates by certifying under penalty of perjury that they are either in compliance, or on a schedule of compliance, with all applicable state and federal emission limitations and standards. The APCO may request the applicant to provide any technical information used by the applicant to certify compliance. (Amended June 15, 1994) **2-2-308 Class I Area Requirements, PSD:**  A facility for which the cumulative increases minus

the contemporaneous emission reduction credits occurring since the PSD Baseline Date, are greater than zero, and which would construct in a Class I Area or within 10 kilometers (6.2 miles) of a Class I Area, and would have an impact on such area equal to or greater than 1 microgram per cubic meter, shall use BACT on the new or modified facility and shall not cause or contribute to the exceedance of any NAAQS at the point of maximum ground level impact or any PSD increment set forth in Section 2-2-232, and shall perform all analyses required by Sections 2-2-414 and 417. (Amended June 15, 1994) **2-2-309 Denial for Air Quality Related Values, PSD:**  The APCO shall deny any permit

application subject to the requirements of Section 2-2-308 where it has been demonstrated by the Federal Land Manager that the permit would authorize emissions

Bay Area Air Quality Management District June 15, 1994

2-2- 14which would have an adverse impact on the air-quality-related values (including visibility) of a Class I Area, provided that such demonstration is completed prior to the termination of the public comment period and that the APCO concurs with that demonstration. **2-2-310 Denial, Failure to Use BACT:**  The APCO shall deny an authority to construct if the

APCO finds that the application is subject to Section 2-2-301 and, after notification in writing, the applicant has not provided a control device or technique meeting the requirements defined in Section 2-2-206. **2-2-311 Denial, Failure to Provide Offsets:**  The APCO shall deny an authority to construct if

the APCO finds that the application is subject to Sections 2-2-302 or 303 and, after notification in writing, the applicant has not provided the required offsets to mitigate the emissions increase. **2-2-312 Denial, Failure to Meet Permit Conditions:**  The APCO shall deny a permit to operate,

after providing written notification to the applicant, if the equipment is operating in violation of any condition specified in the authority to construct, or if any source used to provide offsets for the project that is owned or operated by the applicant is operating in violation of any permit condition limiting emissions such that the required offsets are not being provided. **2-2-313 Offset Requirements, Replacement Sources of Precursor Organic Compounds** 

**and Nitrogen Oxides, NSR:** Before the APCO may issue an authority to construct or a permit to operate for a replacement source at a facility which has actual emissions of 50 tons per year or more, on a pollutant specific basis, of precursor organic compounds or nitrogen oxides, offsets requirements shall be met: 1.) either in accordance with the requirements of Section 2-2-302, or 2.) in accordance with the provisions of Section 2-2-608, provided no increase in the permitted level of the replaced source, adjusted for BACT, is authorized. (Adopted June 15, 1994) **2-2-314 Federal New Source Review Applicability:**  The requirements of 40 CFR 51.165 are

incorporated, by reference, as part of this rule. (Adopted June 15, 1994) **2-2-315 Federal Prevention of Significant Deterioration Applicability:**  The requirements of

40 CFR 51.166 are incorporated, by reference as part of this rule. (Adopted June 15, 1994) **2-2-316 No Net Increase Status Report:**  The APCO shall publish in conjunction with the

triennial update of the Clean Air Plan(CAP), a report demonstrating that the District's permitting program complies with the no net increase requirements of Section 40919 (b) of the Health and Safety Code. This report shall demonstrate that sufficient offsets have been provided, as required by Section 2-2-302, for all permits issued during the previous three year CAP period. This report shall be forwarded to the California Air Resources Board, Stationary Source Division for approval. (Adopted June 15, 1994)

**2-2-400 ADMINISTRATIVE REQUIREMENTS** 

**2-2-401 Application:**  In addition to the requirements of Regulation 2-1-402, applications for

authorities to construct facilities subject to Rule 2 shall include all of the following: 401.1 For new facilities, which will emit, and for a modification which will increase emissions more than 100 tons per year of carbon monoxide or 40 tons per year of either precursor organic compounds or nitrogen oxides, an analysis of alternative sites, sizes, production processes, and environmental control techniques for such proposed source which demonstrate that benefits of the proposed source significantly outweigh the environmental and social costs imposed as a result of its location, construction or modification. 401.2 The information required by the lists and criteria adopted pursuant to Section 65940 of the California Government code that are in effect on the date the application is filed. 401.3 CEQA-related information which satisfies the requirements of Regulation 2-1-426. (Amended November 20, 1991; Amended June 15, 1994) **2-2-402 Complete Application:**  The APCO shall determine whether an application for an

Bay Area Air Quality Management District June 15, 1994

2-2- 15authority to construct is complete not later than 30 calendar days following receipt of the application, or after a longer time period agreed upon by both the applicant and the APCO. If the APCO determines that the application is not complete, the applicant shall be notified in writing of the decision, specifying the information that is required. Upon receipt of any resubmittal of the application a new 30 day period to determine completeness shall begin. The application shall be deemed complete on the date of receipt of all information required for completeness. Upon determination that the application is complete, the APCO shall notify the applicant in writing. If applicable, such written notification shall include the District's determination that its evaluation of the application will be covered by the specific procedures, fixed standards and objective measurements set forth in Volume II of the District's Manual of Procedures and that the District's evaluation of that permit application will be classified as ministerial and will accordingly be exempt from CEQA review. Thereafter only information regarding offsets, or information to clarify, correct or otherwise supplement the information submitted in the application may be requested. **2-2-403 Authority to Construct:** Within 60 days following the acceptance of an application as

complete, which is not subject to the publication and public comment requirements of Section 2-2-405, or with the consent of the applicant, such longer period as may be agreed upon, the APCO shall make a decision as to whether an authority to construct shall be approved or denied. Written notice of the APCO's decision shall be provide to the applicant and to any person who request such specific notification. 403.1 Notwithstanding this 60-day limit, the APCO shall not take final action for any project for which an Environmental Impact Report or a Negative Declaration has been prepared until a Final EIR for that project has been certified, or a Negative Declaration for that project has been approved, and the APCO has considered the information in that Final EIR or Negative Declaration. For cases in which the 60-day time period has elapsed, the APCO shall take final action on the application within 30 days after the certification of the Final EIR or approval of the Negative Declaration. This subsection shall not apply to any project which is exempt from the District's CEQA requirements pursuant to Regulation 2-1-311 or 2-1-312. (Amended November 20, 1991) **2-2-404 Authority to Construct, Preliminary Decision:**  Within 90 days following the

acceptance of an application as complete, which is subject to the requirements of Section 2-2-405, or longer period necessary to satisfy the requirements of Section 2-2-414, providing that any fees required in accordance with Regulation 3-318 are paid, or with the consent of the applicant, such longer period as may be agreed upon, the APCO shall make a preliminary decision as to whether an authority to construct shall be approved, or denied. Final action on this application will be taken in accordance with the requirements of Section 2-2-407. 404.1 When the District is the CEQA Lead Agency for a project, the 90-day limit for issuing a preliminary decision shall be suspended until the draft EIR or Negative Declaration is available for the APCO's consideration and public review. (Amended November 20, 1991) **2-2-405 Publication and Public Comment:**  If the application is for a new major facility or a

major modification of an existing major facility or requires a PSD analysis, the APCO shall within 10 days of the notification of the applicant, cause to have published in atleast one newspaper of general circulation within the District, a prominent notice stating the preliminary decision of the APCO, the location of the information available pursuant to Section 2-2-406, and inviting written public comment for a 30 day period following the date of publication. Written notice of the preliminary decision shall be sent to the ARB, the regional office of the EPA and adjacent districts. A copy of this notice shall be provided to any person who requests such specific notification in writing. During this period, which may be extended by the APCO, the APCO may elect to hold a public meeting to receive verbal comment from the public. The written notice shall contain the degree of PSD increment consumed. 405.1 In addition to the above requirements, for any application for which the District is a Lead Agency under CEQA, the public notice required pursuant to this Section

Bay Area Air Quality Management District June 15, 1994

2-2- 162-2-405 shall provide public notice of the availability of a Draft EIR, a Negative Declaration or a Notice of Exemption, as applicable. **2-2-406 Public Inspection:**  The APCO shall make available for public inspection, at District

headquarters, the information submitted by the applicant, and if applicable the APCO's analysis, and the preliminary decision to grant or deny the authority to construct including any proposed conditions, including the reasons therefore. In making information available for public inspection, the confidentiality of trade secrets, as designated by the applicant prior to completion of the application, shall be considered in accordance with Section 6254.7 of the Government Code. Furthermore, all such information shall be transmitted, upon the date of publication, to the ARB and the regional office of the EPA if the application is subject to the requirements of Section 2-2-405. **2-2-407 Authority to Construct, Final Action:**  If the application is for a new major facility or a

major modification of an existing major facility or requires a PSD analysis, the APCO shall within 180 days following the acceptance of the application as complete, or a longer time period agreed upon, take final action on the application after considering all public comments. Written notice of the final decision shall be provided to the applicant, the ARB and the EPA, and, if the District is a Lead Agency under CEQA, to any person who has commented on a Draft EIR. The final action will also be published in at least one newspaper of general circulation within the District, and the notice and supporting documentation shall be available for public inspection at District headquarters. 407.1 Notwithstanding the requirement of this Section 2-2-407 that the APCO shall act within 180 days after the application is accepted as complete, the APCO shall not take final action on the application for any project for which an Environmental Impact Report or a Negative Declaration has been prepared pursuant to the requirements of CEQA until a Final EIR for that project has been certified and the APCO has considered the information contained in that Final EIR, or a Negative Declaration for that project has been approved. If the specified 180 day period has elapsed prior to the certification of the Final EIR or the approval of the Negative Declaration, the APCO shall take final action on the application within 30 days after the certification of the Final EIR or approval of the Negative Declaration. **2-2-408 Appeal:**  The following actions of the APCO may be appealed:

408.1 In accordance with Section 42302 of the Health and Safety Code, an applicant for an authority to construct which has been denied may request, within 10 days after receipt of the written notice to deny, the Hearing Board of the District to hold a hearing on whether or not the authority to construct was properly denied. 408.2 In accordance with Section 42302.1 of the Health and Safety Code, within 10 days of any decision of the APCO pertaining to the issuance of an authority to construct, any aggrieved person who, in person or through a representative, appeared, submitted written testimony, or otherwise participated in the action before the District may request the Hearing Board of the District to hold a public hearing to determine whether the authority to construct was properly issued or for an order modifying or reversing that decision. Such appeals shall be filed in writing and contain a summary of the issues to be raised. The Hearing Board shall consider the appeal at a public hearing within 30 days of the filing of the appeal. The Hearing Board may reverse or modify the decision of the APCO if it determines that the decision was erroneous. (Amended November 20, 1991) **2-2-409 Requirements, Permit to Operate:**  As a condition for the issuance of a Permit to

Operate, the APCO shall require that the new or modified source and the sources which provide offsets be operated in the manner assumed in making the analysis required to determine compliance with this Regulation. 409.1 The permit to operate of any source used to provide offsets shall be conditioned to insure that the emission reductions will be enforceable and shall continue for the reasonably expected life of the proposed source. If offsets are obtained from a source for which there is no permit to operate, either a permit shall be

Bay Area Air Quality Management District June 15, 1994

2-2- 17obtained or a written contract shall be required between the applicant and the owner or operator of such source, which contract, by its terms, shall be enforceable by the APCO to ensure that such reductions will continue for the duration of the life of the proposed source. **2-2-410 Issuance, Permit to Operate:**  The APCO shall issue a permit to operate a source

subject to the requirements of this Rule if it is determined that any offsets required, as a condition of an authority to construct or amendment to a permit to operate, will commence no later than the initial operation of the new source or within 90 days after initial operation of the modified source, and that the offsets shall be maintained throughout the operation of the new or modified source which is the beneficiary of the offsets. Further, the APCO shall determine that all conditions specified in the authority to construct have been or will be likely complied with by any dates specified. Where a new or modified source is, in whole or in part, a replacement for an existing source on the same property, the APCO may allow a maximum of 90 days as a start-up period for simultaneous operation of the existing source and the new source or replacement. **2-2-411 Permit to Operate, Final Action:**  The APCO shall take final action to approve,

approve with conditions, or disapprove a permit to operate a source subject to this Rule within 60 days after start-up of the new or modified source. However, failure to act within the 60 day period, unless the time period is extended with the written concurrence of the applicant, shall be deemed to be a denial of the permit. Such denial may be appealed to the Hearing Board in accordance with the provisions of Regulation 2-1-410

**.** (Amended November 20, 1991) **2-2-412 Source Obligation, Relaxation of Enforceable Conditions:**  At such time as the

applicability of any requirement of this Rule would be triggered by an existing source or facility, solely by virtue of a relaxation of any enforceable limitation on the capacity of the source or facility to emit a pollutant, then the requirements of this Rule shall apply to the source or facility in the same way as they would apply to a new or modified source or facility otherwise subject to this Rule. **2-2-413 Public Notice, Schools:**  Prior to making a Preliminary Decision in accordance with

Section 2-2-404 on an application for an authority to construct a new or modified source which emits any substance into the ambient air which is on the list required to be prepared pursuant to subdivision (a) of Section 25532 and Section 44321 of the Health and Safety Code and which is located within 1000 feet from the outer boundary of a school, the APCO shall: 413.1 Prepare a public notice in which the proposed new or modified source, and the proposed emissions, are fully described. 413.2 Distribute the notice, prepared in accordance with subsection 2-2-413.1, at the expense of the applicant, to the parents of children in any school within one-quarter mile of the source and to each address within a radius of 750 feet from the outer property line of the proposed new or modified source. This notice shall be distributed at least 30 days prior to the date final action on the application is to be taken by the APCO. The APCO shall review and consider all comments received during the 30 days after the notice is distributed, and shall include written responses to the comments in the permit application file prior to taking final action on the application. **2-2-414 PSD Air Quality Analysis:**  An application for an authority to construct a facility subject

to the requirements of Sections 2-2-304, 305, 306 or 308 shall contain the following: 414.1 A modeling analysis, as defined in Section 2-2-222, demonstrating to the satisfaction of the APCO the air quality impacts of the new or modified facility (including impacts of non-criteria pollutants if required under Section 2-2-306). The analysis shall include meteorological and topographic data necessary to estimate such impact. If the maximum air quality impacts of the new or modified facility do not exceed the significance levels for air quality impacts, as defined in Section 2-2-233, no further analysis under this Section will be required unless the facility is subject to the Class I area requirements of Section 2-2-308. 414.2 A demonstration by modeling to the satisfaction of the APCO that the allowable emission increases from the new or modified facility, in conjunction with all other

Bay Area Air Quality Management District June 15, 1994

2-2- 18applicable emissions, would not cause or contribute to a violation of an air quality standard or an exceedance of any applicable PSD increment. A new or modified facility will be considered to cause or contribute to a violation of an air quality standard when the increase in emissions would cause a significant air quality impact at any locality that does not or would not meet the applicable air quality standard. 414.3 For determining whether the emission increases from the new or modified facility would cause or contribute to an air quality standard violation or an exceedance of a PSD increment, an analysis of the existing air quality in the impact area of the new or modified facility that includes one year of continuous ambient air quality monitoring data. The continuous air quality monitoring data shall have been gathered over a period of at least one year preceding the receipt of a complete application. The APCO may approve a shorter period (but not less than four months) provided that the period of monitoring includes the time frame when maximum concentrations are expected. The APCO may approve modeling in lieu of ambient air quality monitoring for pollutants for which no air quality standard exists. 414.4 For pollutants for which PSD increments have been established, a PSD increment consumption analysis that includes: 4.1 Establishment of the baseline area(s) affected by the new and modified facility, and the corresponding baseline date(s); 4.2 An analysis of the air quality impact of all increment-consuming emissions within the impact area of the new or modified facility, and those increment-consuming emissions outside the impact area that may have a significant air quality impact within the impact area; and, 4.3 An analysis of the air quality impact, and the nature and extent of any or all general commercial, residential, industrial, and other growth which has occurred since the baseline date in the impact area of the new or modified facility. **2-2-415 Notice to EPA and Federal Land Manager:**  On the date of a complete application

subject to Section 2-2-308, the APCO shall provide a copy of the complete application to the EPA, the Federal Land Manager for the affected Class I Area, and to the federal official charged with direct responsibility for management of any lands within the Class I area. The APCO shall also send a copy of the preliminary decision and the APCO's analysis to the above agencies. **2-2-416 Report, PSD Increment Consumption:**  The District shall conduct an annual review of

the increment status for each attainment pollutant, and the APCO, upon request of the Board of Directors, shall provide a report on the consumption of PSD increments which have occurred during the period of interest. **2-2-417 Visibility, Soils, and Vegetation Analysis:**  An application for a permit subject to the

requirements of Section 2-2-414 shall contain an analysis of the impairment to visibility, soils and vegetation that would occur as a result of the new or modified source and the general commercial, residential, industrial and other growth associated with the source or modification. The applicant need not provide an analysis of the impact on vegetation if it has no significant commercial or recreational value. **2-2-418 PSD Analysis Stack Heights:**  For the purposes of modeling, stack heights beyond

what is required by good engineering practices shall not be allowed. This requirement should not be perceived to be a limit on the actual constructed height of a stack. The method to calculate good engineering stack height is referenced in Section 2-2-602. **2-2-419 Permit Conditions:**  The APCO may require any permit condition necessary to insure

compliance with this Rule to be included in an authority to construct or permit to operate. This may include conditions controlling the operation of the source, of its abatement equipment, or of sources used to provide mitigation (offsets). Conditions may have a future effective date and may be made conditional on the results of source tests, ground level monitors or public complaints. 0.1 All emission reduction credits shall be enforceable by permit conditions; such permit conditions shall constitute applicable requirements of the State

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2-2- 19Implementation Plan for purposes of Section 113 and 304 of the Clean Air Act and are enforceable in the same manner as other SIP requirements. (Amended June 15, 1994) **2-2-420 Semiconductor Fabrication Area, Annual BACT and Offset Certification:**  Upon

written request by an owner or operator of a Semiconductor Fabrication Area (Fab Area), the APCO shall certify which specific pieces of equipment, comprising a Fab Area, are being controlled to the current District BACT levels. After the initial BACT certification, the facility must reapply in writing at the time of annual permit renewal for recertification by the APCO. Thereafter, any piece of equipment within a Fab Area that is currently BACT certified may be replaced with a functionally equivalent device, without first obtaining an authority to construct from the District provided that: 420.1 The APCO has issued a certification in writing specifying that the piece of equipment being replaced is being controlled to current BACT levels; 420.2 Offsets are supplied in quantities required by Section 2-2-302, to the satisfaction of the APCO, by the permittee at the time of annual permit renewal for all such equipment replacements; 420.3 The emission limits for the semiconductor fabrication area are reset, to the highest levels demonstrated, to the satisfaction of the APCO, for any twelve (12) consecutive month period occurring during the last five years ; and 420.4 The APCO is advised in writing of any equipment replacement within 30 days of the replacement and provided that no changes in the Fab Area permit conditions are required due to the replacement. (Amended June 15, 1994) **2-2-421 Offset Deferral, Annual Permit Renewal:**  Whenever offsets are required by Section

2-2-302 or 303, a person has the option to defer providing the offsets until the time of the annual permit renewal provided: 421.1 The facility demonstrates that they have valid Banking Certificates adequate to cover their offset obligation. Offsets deferred under the provisions of this Section shall be provided by the facility at least 30 days prior to the date of annual permit renewal, and 421.2 The facility does not have a cumulative increase greater than 15 tons per year for the pollutant or pollutants subject to the offset requirement(s). (Adopted June 15, 1994)

**2-2-500 MONITORING AND RECORDS** 

**2-2-501 PSD Pre-Construction Ambient Air Monitoring:**  An applicant subject to the

requirements of subsection 2-2-414.3 shall meet the following requirements: 501.1 Prior to commencing pre-construction ambient air monitoring, receive written approval from the APCO regarding the selection and operation of monitoring stations. 501.2 Operate the monitoring stations in accordance with the provisions of Appendix B to 40 CFR 58. The APCO may approve the use of District air monitoring data as part of the PSD air quality analysis required by Section 2-2-414. **2-2-502 PSD Post-Construction Monitoring:**  The owner or operator of a facility subject to the

requirements of Section 2-2-414 shall, after construction of the facility or modification, conduct such ambient air quality monitoring as the APCO specifies in the authority to construct or the permit to operate. The monitoring shall determine the effect emissions from the facility or modification may have, or are having, on air quality in the area. All air monitoring shall be performed in accordance to the Manual of Procedures, Volume VI and 40 CFR Appendix B.

**2-2-600 MANUAL OF PROCEDURES** 

**2-2-601 Ambient Air Quality Monitoring:**  Any person subject to the ambient air quality

monitoring requirements of this Rule shall use the methods prescribed in the Manual of Procedures, Volume VI. **2-2-602 Good Engineering Practice (GEP) Stack Height:**  The method for calculating GEP

Bay Area Air Quality Management District June 15, 1994

2-2-20stack height is contained in the FEDERAL REGISTER: VOLUME 50, NUMBER 130; MONDAY, JULY 18, 1985. **2-2-603 PSD Air Quality Evaluation Procedure:**  As a guideline to preparing an air quality

impact analysis the applicant is encouraged to review "Guidelines for Air Quality Maintenance Planning and Analysis," Volume 10 (Revised): Procedures for Evaluating Air Quality Impact of New Stationary Sources, EPA-450/4-77-001. **2-2-604 Emission Increase Calculation Procedures, New or Modified Sources:**  The APCO

shall determine the annual emission increase, expressed as tons per year, from: 604.1 A new source based on the maximum emitting potential of the new source or the maximum permitted emission level of the new source, approved by the APCO, subject to federally enforceable limiting conditions. 604.2 A modified source by subtracting either the annual emission rate for which offsets have been provided or the actual annual emission for the highest twelve (12) consecutive month period occurring during the last five years immediately preceding the application date, in compliance with all District rules, regulations and permit conditions and which was representative of normal operation, from the new maximum permitted emission level of the modified source, approved by the APCO, subject to federally enforceable limiting conditions. (Amended June 15, 1994) **2-2-605 Emission Calculation Procedures, Emission Reduction Credits :**  The APCO shall

determine the emission reduction credits which qualify as offsets from a: 605.1 Contemporaneous shutdown of a source, as a condition of the authority to construct, by determining the annual emission rate for which offsets have been provided, adjusted to reflect any reductions required by any pending District retrofit regulation, or by determining the actual annual emission from the source, averaged over the highest twelve (12) consecutive month period occurring during the last five years immediately preceding the application date, in compliance with all District rules, regulations and permit conditions and which was representative of normal operation, adjusted to reflect any reductions required by District regulations or by any pending district law, rule or regulation. 605.2 Source to be controlled or, curtailed, by subtracting the new maximum permitted emission level of the source, approved by the APCO, subject to federally enforceable limiting conditions, from either the actual annual emission from the source, averaged over the highest twelve (12) consecutive month period occurring during the last five years immediately preceding the application date, in compliance with all District rules, regulations and permit conditions and which was representative of normal operation, adjusted to reflect any reductions required by any pending District retrofit regulation or from the annual emission rate, for which offsets have been provided, adjusted to reflect any reductions required by any pending district retrofit regulation. (Amended June 15, 1994) **2-2-606 Emission Calculation Procedures, Offsets:**  Except as provide by the offset deferral

provision of Section 2-2-421, before the APCO may issue an authority to construct for a new or modified source, offsets shall be provided, as required by Sections 2-2-302, 303 or 313 by the applicant from credits in the District's Emissions Bank and/or from contemporaneous emission reduction credits which qualify in accordance with Sections 2-2-201 and 605, or by the District from the small facility account for the amounts calculated as follows: 606.1 For precursor organic compounds (POC) and oxides of nitrogen (NOx) for the total of all emission increases as determined in Section 2-2-604 plus any pre-existing cumulative increase from April 5, 1991, multiplied by the offset ratio required by Section 2-2-302. 606.2 If required by Section 2-2-303, for particulate matter, PM10, and sulfur dioxide for the total of all emission increases as determined in Section 2-2-604 multiplied by the appropriate offset ratio specified in Section 2-2-303. Emission offsets provided in excess of those required, which meet the requirements of a bankable reduction per Regulation 2-4-301 or 302 and banking credit period defined

Bay Area Air Quality Management District June 15, 1994

2-2-21in Regulation 2-4-203, may qualify to be banked. Banking fees shall be waived for this transaction. (Amended June 15, 1994) **2-2-607 Emission Calculation Procedures, Emission Reduction Credits for Mobile** 

**Sources:** Emission reduction credits for mobile sources shall be determined by the Mobile Source Emission Reduction Credits procedures published February 1994 (or subsequent revisions) by the California Air Resources Board or other District approved procedures in the Manual of Procedures. (Adopted June 15, 1994) **2-2-608 Alternate Emission Calculation Procedures, Replacement Sources:**  As an

alternative to the calculation procedures of subsection 2-2-605.1 an applicant may elect to have a replacement source conditioned by maximum production capacity, throughput, output, or other rating of the replaced source provided the following provisions are satisfied: 608.1 The replacement source is functionally equivalent to the replaced source prior to replacement and is located within the same facility; and 608.2 There is no increase in maximum: production capacity, throughput, output, or other rating of the replaced source; and 608.3 Each replacement source shall be equipped with Best Available Control Technology (BACT) as required by Section 2-2-301; A conditioned emission level established in accordance with this section shall not be the basis of calculating an emission reduction credit or an emission baseline unless all applicable calculation procedures of Section 2-2-605 of this Rule and Regulation 2 Rule 4 are followed. (Adopted June 15, 1994)

Bay Area Air Quality Management District June 15, 1994

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