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EL DORADO COUNTY AIR QUALITY MANAGEMENT DISTRICT

RULE 523-1 – FEDERAL NON-ATTAINMENT NEW SOURCE REVIEW 

Requirements for New and Modified Major Sources in Federal Non-attainment Areas 

Implementing the provisions of 40 CFR 51.165 

(Adopted March 8, 2016) 

1 APPLICABILITY PROCEDURES .................................................................................................. 1

1.1 Preconstruction Review Requirements ..................................................................................................... 1

1.2 Authority to Construct Requirement......................................................................................................... 1

1.3 Emission Calculation Requirements to Determine NSR Applicability......................................................... 1

1.4 Major Sources with Plantwide Applicability Limitations (PAL) .................................................................. 2

1.5 Projects Which Rely On a Projected Actual Emissions Test........................................................................ 2

1.6 Secondary Emissions................................................................................................................................. 4

2 DEFINITIONS ................................................................................................................................... 4

3 APPLICATION REQUIREMENTS ..............................................................................................17

3.1 Application Submittal.............................................................................................................................. 17

3.2 Application Content ................................................................................................................................ 18

3.3 Lowest Achievable Emission Rate (LAER)................................................................................................. 19

3.4 Statewide Compliance............................................................................................................................. 19

3.5 Analysis of Alternatives........................................................................................................................... 19

3.6 Sources Impacting Class I Areas............................................................................................................... 19

3.7 Application Fees...................................................................................................................................... 19

4 EMISSIONS OFFSETS...................................................................................................................19

4.1 Offset Requirements............................................................................................................................... 19

4.2 Timing ..................................................................................................................................................... 20

4.3 Quantity.................................................................................................................................................. 20

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4.4 Emission Reduction Requirements.......................................................................................................... 21

4.5 Restrictions on Trading Pollutants........................................................................................................... 22

5 ADMINISTRATIVE REQUIREMENTS ......................................................................................22

5.1 Visibility .................................................................................................................................................. 22

5.2 Ambient Air Quality Standards................................................................................................................ 22

5.3 Air Quality Models .................................................................................................................................. 22

6 PRELIMINARY DECISION...........................................................................................................23

6.1 Preliminary Decision ............................................................................................................................... 23

6.2 AUTHORITY TO CONSTRUCT – PRELIMINARY DECISION ......................................................................................... 23

6.3 Authority to Construct Contents ............................................................................................................. 24

6.4 Authority to Construct – Final Decision ................................................................................................... 24

7 SOURCE OBLIGATIONS...............................................................................................................25

7.1 Enforcement ........................................................................................................................................... 25

7.2 Termination ............................................................................................................................................ 25

7.3 Compliance ............................................................................................................................................. 25

7.4 Relaxation in Enforceable Limitations..................................................................................................... 25

8 PUBLIC PARTICIPATION...........................................................................................................26

9 PLANTWIDE APPLICABILITY LIMITS (PAL) .......................................................................26

9.1 Applicability ............................................................................................................................................ 26

9.2 Definitions............................................................................................................................................... 27

9.3 Permit Application Requirements ........................................................................................................... 28

9.4 General Requirements for Establishing PALs........................................................................................... 28

9.5 Public Participation Requirements for PALs ............................................................................................ 29

9.6 Setting the 10-year Actuals PAL Level...................................................................................................... 29

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9.7 Contents of the PAL permit..................................................................................................................... 30

9.8 PAL Effective Period and Reopening of PAL Permit ................................................................................. 30

9.9 Expiration of a PAL .................................................................................................................................. 31

9.10 Renewal of a PAL..................................................................................................................................... 32

9.11 Increasing a PAL during the PAL Effective Period..................................................................................... 33

9.12 Monitoring Requirements for PALs ......................................................................................................... 34

9.13 Recordkeeping Requirements................................................................................................................. 37

9.14 Reporting and Notification Requirements............................................................................................... 37

9.15 Transition Requirements......................................................................................................................... 38

10 INVALIDATION .........................................................................................................................38

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1 APPLICABILITY PROCEDURES

1.1 PRECONSTRUCTION REVIEW REQUIREMENTS

The preconstruction review requirements of this rule apply to the proposed construction of 

any new major stationary source or any major modification located at an existing major 

stationary source, if the stationary source or modification is major for the regulated NSR 

pollutant for which the area it is to be located is designated nonattainment, as listed in 40 

CFR 81.305, except as provided in Section 9 of this rule. Note: the requirements of District 

Rule 523 are also applicable. 

1.2 AUTHORITY TO CONSTRUCT REQUIREMENT

No new major stationary source or major modification to which the requirements of this 

rule apply shall begin actual construction without first obtaining an Authority to 

Construct issued pursuant to this rule. 

1.3 EMISSION CALCULATION REQUIREMENTS TO DETERMINE NSR

APPLICABILITY

The provisions set out in paragraphs (a) through (e) below shall be used to determine if a 

proposed project will result in a new major stationary source or a major modification to 

an existing stationary source. These provisions shall not be used to determine the quanity 

of offsets required for a project subject to the requirements of this rule. 

(a) Except as otherwise provided in Section 1.4, a project is a major modification for a 

regulated NSR pollutant if it causes two types of emissions increases: a significant 

emissions increase and a significant net emissions increase. The project is not a major 

modification if it does not cause a significant emissions increase. If the project causes 

a significant emissions increase, then the project is a major modification only if it also 

results in a significant net emissions increase.

(b) The procedure for calculating (before beginning actual construction) whether a 

significant emissions increase will occur depends upon the type of emissions units 

being added or modified as part of the project, according to paragraphs (c) through (e) 

of this Subsection. The procedure for calculating (before beginning actual 

construction) whether a significant net emissions increase will occur at the major 

stationary source is contained in the definition of Net Emissions Increase. Regardless 

of any such preconstruction projections, a major modification results if the project 

causes a significant emissions increase and a significant net emissions increase.

(c) Actual-to-Projected-Actual Applicability Test for Projects that Only Involve 

Existing Emissions Units. A significant emissions increase of a regulated NSR 

pollutant is projected to occur if the sum of the difference between the projected 

actual emissions and the baseline actual emissions, for each existing emissions unit, 

equals or exceeds the significant amount for that pollutant. 

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(d) Actual-to-Potential Test for Projects that Only Involve Construction of a New 

Emissions Unit(s). A significant emissions increase of a regulated NSR pollutant is 

projected to occur if the sum of the difference between the PTE from each new 

emissions unit following completion of the project and the baseline actual emissions 

of these units before the project equals or exceeds the significant amount for that 

pollutant. 

(e) Hybrid Test for Projects that Involve Multiple Types of Emissions Units. A 

significant emissions increase of a regulated NSR pollutant is projected to occur if the 

sum of the emissions increases for each emissions unit, using the method specified in 

paragraphs (c) or (d) of this Subsection, as applicable, with respect to each emissions 

unit, equals or exceeds the significant amount for that pollutant. 

1.4 MAJOR SOURCES WITH PLANTWIDE APPLICABILITY LIMITATIONS (PAL)

For any major stationary source with a PAL permit for a regulated NSR pollutant, the 

major stationary source shall comply with the requirements in Section 9 of this rule. 

1.5 PROJECTS WHICH RELY ON A PROJECTED ACTUAL EMISSIONS TEST

The provisions of this Subsection shall apply with respect to any regulated NSR pollutant 

emitted from projects at existing emissions units located at a major stationary source, 

other than a source with a PAL permit, if the owner or operator has determined that the 

project is not a a major modification, but has a projected emission increase of at least 

50% of the amount that is a “signficant emission increase,” as defined in this rule; and the 

owner or operator elects to use the method specified in paragraphs (a)(i) through (a)(iv)

of the definition of Projected Actual Emissions to calculate emission increases from the 

project. 

(a) Before beginning actual construction of the project the owner or operator shall 

document and maintain a record of the following information: 

(i) A description of the project; 

(ii) Identification of the emissions unit(s) whose emissions of a regulated NSR 

pollutant could be affected by the project; and 

(iii)A description of the applicability test used to determine that the project is not a 

major modification for any regulated NSR pollutant, including the baseline actual 

emissions, the projected actual emissions, the amount of emissions excluded 

under paragraph (a)(iv) of the definition of Projected Actual Emissions and an 

explanation for why such amount was excluded, and any netting calculations, if 

applicable.

(b) If the emissions unit is an existing emissions unit, before beginning actual 

construction, the owner or operator shall provide a copy of the information set out in 

paragraph (a) of this Subsection to the APCO. Nothing in this paragraph shall be 

construed to require the owner or operator of such a unit to obtain any determination 

from the APCO before beginning actual construction, except such owner or operator 

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may be subject to the requirements of District Rule 501 General Permit Requirements 

or other applicable requirements. 

(c) The owner or operator shall monitor the emissions of any regulated NSR pollutant 

that could increase as a result of the project and that are emitted by any emissions unit 

identified in paragraph (a)(ii) of this Subsection; and calculate and maintain a record 

of the annual emissions (in tpy on a calendar year basis) for a period of five years 

following resumption of regular operations after the change, or for a period of ten 

years following resumption of regular operations after the change if the project 

increases the design capacity or potential to emit that regulated NSR pollutant at such

emissions unit.

(d) If the emissions unit is an existing electric utility steam generating unit, the owner or 

operator shall submit a report to the APCO within sixty days after the end of each 

calendar year during which records must be generated under paragraph (c) of this 

Subsection, setting out the unit’s annual emissions during the calendar year that 

preceded submission of the report. 

(e) If the emissions unit is an existing emissions unit other than an electric utility steam 

generating unit, the owner or operator shall submit a report to the APCO if the annual 

emissions, in tpy, from the project identified in paragraph (a)(ii) of this Subsection 

exceed the baseline actual emissions by a significant amount for that regulated NSR 

pollutant, and if such emissions differ from the projected actual emissions (prior to 

exclusion of the amount of emissions under the definition of Projected Actual 

Emissions) as documented and maintained pursuant to paragraph (a)(iii) of this 

Subsection. Such report shall be submitted to the APCO within sixty days after the 

end of such year. The report shall contain the following: 

(i) The name, address, and telephone number of the major stationary source; 

(ii) The annual emissions, as calculated pursuant to paragraph (c) of this Subsection; 

and

(iii)Any other information that the owner or operator wishes to include in the report 

(e.g., an explanation as to why the emissions differ from the preconstruction 

projection). 

(f) The owner or operator of the source shall make the information required to be 

documented and maintained pursuant to this Subsection available for review upon a 

request for inspection by the APCO or the general public pursuant to the requirements 

contained in 40 CFR 70.4(b)(3)(viii). 

(g) A “reasonable possibility” under this Subsection occurs when the owner or operator 

calculates the project to result in either: 

(i) A projected actual emissions increase of at least 50 percent of the amount that is a 

“significant emissions increase,” as defined in this rule (without reference to the 

amount that is a significant net emissions increase), for the regulated NSR 

pollutant; or 

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(ii) A projected actual emissions increase that, added to the amount of emissions 

excluded under paragraph (a)(iv) of the definition of Projected Actual Emissions, 

sums to at least 50 percent of the amount that is a “significant emissions 

increase,” as defined in this rule (without reference to the amount that is a 

significant net emissions increase), for the regulated NSR pollutant. 

(iii)For a project for which a reasonable possibility occurs only within the meaning of 

Subsection 1.5(g)(ii), and not also within the meaning of Subsection 1.5 (g)(i), the 

provisions of paragraphs (b) through (e) of this Subsection do not apply to the 

project. 

1.6 SECONDARY EMISSIONS

Secondary emissions shall not be considered in determining whether a stationary source 

would qualify as a major stationary source. If a stationary source is subject to this rule on 

the basis of the direct emissions from the stationary source, the requirements of Section 4, 

but no other provisions of this rule, must also be met for secondary emissions. 

2 DEFINITIONS

Unless the context otherwise requires, the following terms shall have the meanings set 

forth below for the purposes of this rule. 

“Actual emissions” means the actual rate of emissions of a regulated NSR pollutant from 

an emissions unit, as determined in accordance with this definition. This definition shall 

not apply for calculating whether a significant emissions increase has occurred, or for 

establishing a PAL under Section 9. Instead, projected actual emissions and baseline 

actual emissions shall apply for those purposes. 

(a) In general, actual emissions as of a particular date shall equal the average rate, in tpy, 

at which the emissions unit actually emitted the pollutant during a consecutive 24-

month period which precedes the particular date and which is representative of 

normal source operation. The APCO shall allow the use of a different time period 

upon a determination that it is more representative of normal source operation. Actual 

emissions shall be calculated using the unit’s actual operating hours, production rates, 

and types of materials processed, stored, or combusted during the selected time 

period. 

(b) The APCO may presume that source-specific allowable emissions for the unit are 

equivalent to the actual emissions of the unit. 

(c) For any emissions unit that has not begun normal operations on the particular date, 

actual emissions shall equal the PTE of the unit on that date.

“Allowable emissions” means the emissions rate of a stationary source calculated using 

the maximum rated capacity of the source (unless the source is subject to federally 

enforceable limits which restrict the operating rate, hours of operation, or both) and the 

most stringent of the following: 

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(a) Any applicable standards set forth in these El Dorado County Air Quality 

Management District Rules and 40 CFR Parts 60, 61, or 63; 

(b) Any applicable emission limitation in the District portion of the California SIP, 

including those with a future compliance date; or

(c) The emissions rate specified as a federally enforceable permit condition, including 

those with a future compliance date.

“Baseline actual emissions” means the rate of emissions, in tpy, of a regulated NSR 

pollutant, as determined in accordance with paragraphs (a) through (d) of this definition. 

(a) For any existing electric utility steam generating unit, baseline actual emissions 

means the average rate, in tpy, at which the unit actually emitted the pollutant during 

any consecutive 24-month period selected by the owner or operator within the 5-year 

period immediately preceding when the owner or operator begins actual construction 

of the project. The APCO shall allow the use of a different time period upon a 

determination that it is more representative of normal source operation. 

(i) The average rate shall include fugitive emissions, to the extent quantifiable, and 

emissions associated with startups, shutdowns, and malfunctions. 

(ii) The average rate shall be adjusted downward to exclude any noncompliant 

emissions that occurred while the source was operating above any emission 

limitation that was legally enforceable during the consecutive 24-month period. 

(iii) For a regulated NSR pollutant, when a project involves multiple emissions units, 

only one consecutive 24-month period must be used to determine the baseline 

actual emissions for the emissions units being changed. A different consecutive 

24-month period can be used for each regulated NSR pollutant. 

(iv) The average rate shall not be based on any consecutive 24-month period for 

which there is inadequate information for determining annual emissions, in tpy, 

and for adjusting this amount if required by section (a)(ii) of this definition. 

(b) For an existing emissions unit (other than an electric utility steam generating unit), 

baseline actual emissions means the average rate, in tpy, at which the emissions unit 

actually emitted the pollutant during any consecutive 24-month period selected by the 

owner or operator within the 10-year period immediately preceding either the date the 

owner or operator begins actual construction of the project, or the date a complete 

permit application is received by the APCO for a permit required under the El Dorado 

County Air Quality Management District Rules, whichever is earlier. 

(i) The average rate shall include fugitive emissions to the extent quantifiable.

(ii) The average rate shall include emissions associated with startups, shutdowns, 

and malfunctions. 

(iii) The average rate shall be adjusted downward to exclude any noncompliant 

emissions that occurred while the source was operating above an emission 

limitation that was legally enforceable during the consecutive 24-month period. 

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(iv) The average rate shall be adjusted downward to exclude any emissions that 

would have exceeded an emission limitation with which the major stationary 

source must currently comply, had such major stationary source been required to 

comply with such limitations during the consecutive 24-month period. However, 

if an emission limitation is part of a maximum achievable control technology 

standard that the Administrator proposed or promulgated under 40 CFR Part 63, 

the baseline actual emissions need only be adjusted if the Local District has 

taken credit for such emissions reductions in an attainment demonstration or 

maintenance plan, consistent with the requirements of 40 CFR 

51.165(a)(3)(ii)(G).

(v) For a regulated NSR pollutant, when a project involves multiple emissions units, 

only one consecutive 24-month period must be used to determine the baseline 

actual emissions for all the emissions units being changed. A different 

consecutive 24-month period can be used for each regulated NSR pollutant. 

(vi) The average rate shall not be based on any consecutive 24-month period for 

which there is inadequate information for determining annual emissions, in tpy, 

and for adjusting this amount if required by sections (b)(iii) and (iv) of this 

definition. 

(c) For a new emissions unit, the baseline actual emissions for purposes of determining 

the emissions increase that will result from the initial construction and operation of 

such unit shall equal zero; and thereafter, for all other purposes, shall equal the unit’s 

PTE. 

(d) For a PAL for a major stationary source, the baseline actual emissions shall be 

calculated for existing electric utility steam generating units in accordance with the 

procedures contained in paragraph (a) of this definition; for other existing emissions 

units, in accordance with the procedures contained in paragraph (b) of this definition; 

and for a new emissions unit, in accordance with the procedures contained in 

paragraph (c) of this definition. 

“Begin actual construction” means in general, initiation of physical on-site construction 

activities on an emissions unit which are of a permanent nature. Such activities include, 

but are not limited to, installation of building supports and foundations, laying of 

underground pipework, and construction of permanent storage structures. With respect to 

a change in method of operating, this term refers to those on-site activities other than 

preparatory activities which mark the initiation of the change.

“Best Available Control Technology (BACT)” means an emission limitation (including a 

visible emissions standard) based on the maximum degree of reduction for each regulated 

NSR pollutant which would be emitted from any proposed major stationary source or 

major modification which the APCO , on a case-by-case basis, taking into account 

energy, environmental, and economic impacts and other costs, determines is achievable 

for such source or modification through application of production processes or available 

methods, systems, and techniques, including fuel cleaning or treatment or innovative fuel 

combustion techniques for control of such pollutant. In no event shall application of 

BACT result in emissions of any pollutant which would exceed the emissions allowed by 

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any applicable standard under 40 CFR Part 60, 61 or 63. If the APCO determines that 

technological or economic limitations on the application of measurement methodology to 

a particular emissions unit would make the imposition of an emissions standard 

infeasible, a design, equipment, work practice, operational standard or combination 

thereof may be prescribed instead to satisfy the requirement for the application of BACT. 

Such standard shall, to the degree possible, set forth the emissions reduction achievable 

by implementation of such design, equipment, work practice, or operation, and shall 

provide for compliance by means which achieve equivalent results. 

“Building, structure, facility, or installation” means all of the pollutant-emitting 

activities which belong to the same industrial grouping, are located on one or more 

contiguous or adjacent properties, and are under the control of the same person (or 

persons under common control) except the activities of any vessel. Pollutant-emitting 

activities shall be considered as part of the same industrial grouping if they belong to the 

same Major Group (i.e., which have the same two-digit code) as described in either the 

Standard Industrial Classification (SIC) manual, 1972, as amended by the 1977 

Supplement or the North American Industry Classification System (NAICS) manual.

“Categorical stationary source” means any stationary source of air pollutants that 

belongs to one of the following categories of stationary sources: 

Coal cleaning plants (with thermal dryers);

Kraft pulp mills;

Portland cement plants; 

Primary zinc smelters;

Iron and steel mills;

Primary aluminum ore reduction plants; 

Primary copper smelters;

Municipal incinerators capable of charging more than 50 tons of refuse per day; 

Hydrofluoric, sulfuric, or nitric acid plants; 

Petroleum refineries;

Lime plants;

Phosphate rock processing plants; 

Coke oven batteries; 

Sulfur recovery plants; 

Carbon black plants (furnace process);

Primary lead smelters;

Fuel conversion plants; 

Sintering plants;

Secondary metal production plants; 

Chemical process plants-The term chemical processing plant shall not include ethanol 

production facilities that produce ethanol by natural fermentation included in NAICS 

codes 325193 or 312140; 

Fossil-fuel boilers (or combination thereof) totaling more than 250 million Btu per 

hour heat input; 

Petroleum storage and transfer units with a total storage capacity exceeding 300,000 

barrels;

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Taconite ore processing plants; 

Glass fiber processing plants; 

Charcoal production plants; 

Fossil fuel-fired steam electric plants of more than 250 million Btu per hour heat 

input; and 

Any other stationary source category, which as of August 7, 1980 is being regulated 

under Section 111 or 112 of the Act. 

“Class I area” means any area listed as Class I in 40 CFR Part 81 Subpart D, including 

Section 81.405, or an area otherwise specified as Class I in the legislation that creates a 

national monument, a national primitive area, a national preserve, a national recreational 

area, a national wild and scenic river, a national wildlife refuge, a national lakeshore or 

seashore. 

“Clean coal technology” means any technology, including technologies applied at the 

precombustion, combustion, or post combustion stage, at a new or existing facility which 

will achieve significant reductions in air emissions of sulfur dioxide or oxides of nitrogen 

associated with the utilization of coal in the generation of electricity, or process steam 

which was not in widespread use as of November 15, 1990. 

“Clean Coal Technology Demonstration Project” means a project using funds 

appropriated under the heading “Department of Energy-Clean Coal Technology,” up to a 

total amount of $2.5 billion for commercial demonstration of clean coal technology, or 

similar projects funded through appropriations for the EPA. The federal contribution for a 

qualifying project shall be at least twenty percent of the total cost of the demonstration 

project. 

“Commence” as applied to construction of a major stationary source or major 

modification, means that the owner or operator has all necessary preconstruction 

approvals or permits, including an Authority to Construct, and either has: 

(a) Begun, or caused to begin, a continuous program of actual on-site construction of the 

source, to be completed within a reasonable time; or 

(b) Entered into binding agreements or contractual obligations, which cannot be canceled 

or modified without substantial loss to the owner or operator, to undertake a program 

of actual construction of the source, to be completed within a reasonable time. 

“Complete” means, in reference to an application, that the application contains all of the 

information necessary for processing the application. 

“Construction” means any physical change, or change in the method of operation 

(including fabrication, erection, installation, demolition, or modification of an emissions 

unit), that would result in a change in emissions. 

“Continuous Emissions Monitoring System (CEMS)” means all of the equipment that 

may be required to meet the data acquisition and availability requirements of this rule, to 

sample, condition (if applicable), analyze, and provide a record of emissions on a 

continuous basis. 

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“Continuous Emissions Rate Monitoring System (CERMS)” means the total equipment 

required for the determination and recording of the pollutant mass emissions rate (in 

terms of mass per unit of time).

“Continuous Parameter Monitoring System (CPMS)” means all of the equipment 

necessary to meet the data acquisition and availability requirements of this rule, to 

monitor process and control device operational parameters and other information (for 

example, control device secondary voltages and electric currents) and other information 

(for example, gas flow rate, O2 or CO2 concentrations) and to record average operational 

parameter value(s) on a continuous basis. 

“District” means the El Dorado County Air Quality Management District. 

“Electric Utility Steam Generating Unit” means any steam electric generating unit that 

is constructed for the purpose of supplying more than one-third of its potential electric 

output capacity, and more than 25 MW of electrical output, to any utility power 

distribution system for sale. Any steam supplied to a steam distribution system for the 

purpose of providing steam to a steam-electric generator that would produce electrical 

energy for sale is also considered in determining the electrical energy output capacity of 

the affected facility.

“Emission Reduction Credit (ERC)” Reductions of actual emissions from emission 

units that are certified by an air district in accordance with applicable district rules and 

are issued by the air district in the form of ERC certificates.

“Emissions Unit” means any part of a stationary source that emits or would have the 

potential to emit, any regulated NSR pollutant and includes an electric utility steam 

generating unit. For purposes of this rule, there are two types of emissions units as 

described in paragraphs (a) and (b) of this definition: 

(a) A “new emissions unit” is any emissions unit which is (or will be) newly constructed 

and which has existed for less than two years from the date such emissions unit first 

operated. For the purposes of this definition, the date an emissions unit first operated 

shall not be extended by any shakedown period established pursuant to paragraph (f) 

of the definition of Net Emissions Increase. 

(b) An “existing emissions unit” is any emissions unit that does not meet the 

requirements in paragraph (a) of this definition. A replacement unit is an existing 

emissions unit.

“Federally Enforceable” means all limitations and conditions which are enforceable by 

the Administrator, including those requirements developed pursuant to 40 CFR parts 60, 

61, and 63, requirements within any applicable State implementation plan, any permit 

requirements established pursuant to 40 CFR 52.21 or under regulations approved 

pursuant to 40 CFR part 51, subpart I, including operating permits issued under an EPAapproved program that is incorporated into the State implementation plan and expressly 

requires adherence to any permit issued under such program. 

“Federal Land Manager” means, with respect to any lands in the United States, the 

Secretary of the Department with authority over such lands. 

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“Fugitive Emissions” means those emissions which could not reasonably pass through a 

stack, chimney, vent, or other functionally equivalent opening. 

“Internal emission reductions” are emision reductions which occur at the same major 

stationary source as the proposed emission increase will occur.

“Lowest Achievable Emission Rate (LAER)” means, for any source, the more stringent 

rate of emissions based on the following: 

(a) The most stringent emission limitation which is contained in the implementation plan 

of any State for such class or category of stationary source, unless the owner or 

operator of the proposed major stationary source demonstrates that such limitations 

are not achievable; or

(b) The most stringent emission limitation which is achieved in practice by such class or 

category of stationary source. This limitation, when applied to a major modification, 

means the LAER for the new or modified emissions units within the stationary 

source. In no event shall the application of the term permit a proposed new or 

modified stationary source to emit any pollutant in excess of the amount allowable 

under an applicable new source standard of performance. 

For purposes of this definition only, the term “any State” means a state, the District of 

Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American 

Samoa, and includes the Commonwealth of the Northern Mariana Islands. 

“Major Modification” means any physical change in or change in the method of 

operation of, a major stationary source that would result in a significant emissions 

increase of a regulated NSR pollutant and a significant net emissions increase of that 

pollutant from the major stationary source.

(a) Any significant emissions increase from any emissions units or net emissions increase 

at a major stationary source that is significant for volatile organic compounds or 

nitrogen oxides shall be considered significant for ozone. 

(b) A physical change or change in the method of operation shall not include: 

(i) Routine maintenance, repair, and replacement; 

(ii) Use of an alternative fuel or raw material by reason of an order under Sections 

2(a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 

(or any superseding legislation), or by reason of a natural gas curtailment plan 

pursuant to the Federal Power Act;

(iii) Use of an alternative fuel by reason of an order or rule under Section 125 of the 

Act;

(iv) Use of an alternative fuel at a steam generating unit, to the extent that the fuel is 

generated from municipal solid waste;

(v) Use of an alternative fuel or raw material by a stationary source which:

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A. The source was capable of accommodating before December 21, 1976, 

unless such change would be prohibited under any federally enforceable 

permit condition which was established after December 21, 1976 pursuant to 

40 CFR 52.21 or under regulations approved pursuant to 40 CFR Part 51, 

Subpart I; or 

B. The source is approved to use under any permit issued under 40 CFR 52.21 

or under regulations approved pursuant to 40 CFR Part 51, Subpart I. 

(vi) An increase in the hours of operation or in the production rate, unless such 

change is prohibited under any federally enforceable permit condition which 

was established after December 21, 1976 pursuant to 40 CFR 52.21 or 

regulations approved pursuant to 40 CFR part 51 subpart I; 

(vii) Any change in ownership at a stationary source;

(viii) The installation, operation, cessation, or removal of a temporary clean coal 

technology demonstration project, provided that the project complies with: 

A. The State Implementation Plan for the State in which the project is located, 

and

B. Other requirements necessary to attain and maintain the national ambient air 

quality standard during the project and after it is terminated.

(c) This definition shall not apply with respect to a particular regulated NSR pollutant 

when the Major Stationary Source is complying with the requirements under Section 

9 for a PAL for that regulated NSR pollutant. Instead, the definition of PAL major 

modification shall apply. 

(d) The fugitive emissions of a major stationary source shall not be included in 

determining for any of the purposes of this rule, whether a particular physical change 

or change in the method of operation is a major modification, unless the source is a 

categorical stationary source.

“Major Stationary Source” means:

(a) Any stationary source of air pollutants which emits, or has the potential to emit, 100 

tpy or more of any regulated NSR pollutant or a precursor, except if a lower emission 

threshold listed below is applicable: 

(i) For an area designated nonattainment for ozone, a source with the potential to 

emit VOC or NOx in the following amounts shall be considered a major 

stationary source:

A. ≥100 tpy in areas classified as “marginal” or “moderate”;

B. ≥50 tpy in areas classified as “serious”;

C. ≥25 tpy in areas classified as “severe”; and 

D. ≥10 tpy in areas classified as “extreme.”

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12 

(ii) For an area designated nonattainment for PM10 and classified as “serious,” a 

major stationary source is a stationary source which emits, or has the potential to 

emit, 70 tpy or more of PM10. 

(iii)For an area designated nonattainment for PM2.5 and classified as “serious,” a 

major stationary source is a stationary source which emits, or has the potential to 

emit, 70 tpy or more of PM2.5. 

(iv)For an area designated nonattainment for CO and classified as “serious,” a major 

stationary source is a stationary source which emits, or has the potential to emit, 

50 tpy or more of CO, where stationary sources significantly contribute to 

ambient CO levels, as determined under regulations issued by EPA pursuant to 

the Act. 

(b) Any physical change that would occur at a stationary source not qualifying as a major 

stationary source under paragraph (a) of this definition, if the change would constitute 

a major stationary source by itself under paragraph (a). 

(c) A major stationary source that is major for volatile organic compounds or nitrogen 

oxides shall be considered major for ozone. 

(d) The fugitive emissions of a stationary source shall not be included in determining 

whether it is a major stationary source, unless the source is a categorical stationary 

source.

“Necessary preconstruction approvals or permits” means those permits or approvals 

required under air quality control laws and regulations that are part of the SIP or federal 

air quality control laws and regulations, including any permits issued pursuant to this 

rule.

“Net Emissions Increase” means, with respect to any regulated NSR pollutant emitted 

by a major stationary source, the following: 

(a) The amount by which the sum of the following exceeds zero: 

(i) The increase in emissions from a particular physical change, or change in the 

method of operation, at a stationary source as calculated pursuant to Subsection 

1.3; and 

(ii) Any other increases and decreases in actual emissions at the major stationary 

source that are contemporaneous with the particular change and are otherwise 

creditable. For the purposes of this paragraph, baseline actual emissions for 

calculating increases and decreases shall be determined as provided in the 

definition of Baseline Actual Emissions, except that paragraphs (a)(iii) and (b)(v) 

of that definition shall not apply. 

(b) An increase or decrease in actual emissions is contemporaneous with the increase 

from the particular change only if it occurs between: 

(i) The date five years before construction on the particular change commences; and 

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(ii) The date that the increase from the particular change occurs.

(c) An increase or decrease in actual emissions is creditable only if it is contemporaneous 

and the APCO has not relied on it in issuing a permit for the source under this rule, or 

any other regulation approved by the Administrator pursuant to 40 CFR Part 51 

Subpart I or 40 CFR Part 52.21, which permit is in effect when the increase in actual 

emissions from the particular change occurs.

(d) An increase in actual emissions is creditable only to the extent that the new level of 

actual emissions exceeds the old level.

(e) A decrease in actual emissions is creditable only to the extent that:

(i) The old level of actual emissions or the old level of allowable emissions, 

whichever is lower, exceeds the new level of actual emissions;

(ii) It is enforceable as a practical matter at and after the time that actual construction 

on the particular change begins;

(iii)The APCO has not relied on it in issuing any permit under any other regulations 

approved pursuant to 40 CFR Part 51, Subpart I, nor has the District relied on it in 

demonstrating attainment or reasonable further progress; and

(iv)It has approximately the same qualitative significance for public health and 

welfare as that attributed to the increase from the particular change.

(f) An increase that results from a physical change at a source occurs when the emissions 

unit on which construction occurred becomes operational and begins to emit a 

particular pollutant. Any replacement unit that requires shakedown, or any new 

emissions unit that replaces an existing emissions unit and that requires shakedown, 

becomes operational only after a reasonable shakedown period, not to exceed 180 

days.

(g) Paragraph (b) of the definition of Actual Emissions shall not apply for determining 

creditable increases and decreases or after a change.

“Nonattainment Major New Source Review (NSR) Program” means a major source 

preconstruction permit program that has been approved by the Administrator and 

incorporated into the District portion of the California SIP, or a program that implements 

40 CFR Part 51, Appendix S, Sections I through VI. Any permit issued under such a 

program is a major NSR permit.

“Nonattainment pollutant” means any pollutant and any precursors of such pollutants 

which have been designated "nonattainment" for the District as codified in 40 CFR 

81.305. 

“PM2.5” means particulate matter with an aerodynamic diameter smaller than or equal to 

a nominal 2.5 microns. Gaseous emissions which condense to form PM2.5 shall also be 

counted as PM2.5. 

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“PM10” means particulate matter with an aerodynamic diameter smaller than or equal to a 

nominal 10 microns. Gaseous emissions which condense to form PM10 shall also be 

counted as PM10. 

“Permanent” means an emission reduction which is federally enforceable for the life of a 

corresponding increase in emissions. 

“Potential to Emit (PTE)” means the maximum capacity of a stationary source to emit a 

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

on the capacity of the source to emit a pollutant, including air pollution control 

equipment and restrictions on hours of operation or on the types or amounts of material 

combusted, stored, or processed, shall be treated as part of its design only if the limitation 

or the effect it would have on emissions is federally enforceable. Secondary emissions do 

not count in determining the PTE of a stationary source. 

“Predictive Emissions Monitoring System (PEMS)” means all of the equipment 

necessary to monitor process and control device operational parameters (for example, 

control device secondary voltages and electric currents) and other information (for 

example, gas flow rate, O2 or CO2 concentrations), and calculate and record the mass 

emissions rate on a continuous basis. 

“Prevention of Significant Deterioration (PSD) Permit” means any permit that is issued 

under a major source preconstruction permit program that has been approved by the 

Administrator to implement the requirements of 40 CFR 51.166 or 40 CFR 52.21. Any 

permit issued under such a program is a major NSR permit.

“Project” means a physical change in, or change in the method of operation of, an 

existing stationary source.

“Projected Actual Emissions” means the maximum annual rate, in tpy, at which an 

existing emissions unit is projected to emit a regulated NSR pollutant in any one of the 

five years (12-month period) following the date the unit resumes regular operation after 

the project, or in any one of the ten years following that date, if the project involves 

increasing the design capacity or PTE of any emissions unit for that regulated NSR 

pollutant and full utilization of the unit would result in a significant emissions increase or 

a significant net emissions increase at the major stationary source.

(a) In determining the projected actual emissions (before beginning actual construction), 

the owner or operator of the major stationary source: 

(i) Shall consider all relevant information, including, but not limited to, historical 

operational data, the company’s own representations, the company’s expected 

business activity and the company’s highest projections of business activity, the 

company’s filings with the county, state or federal regulatory authorities, and 

compliance plans under the SIP; and 

(ii) Shall include fugitive emissions to the extent quantifiable; and

(iii)Shall include emissions associated with startups, shutdowns, and malfunctions; 

and

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(iv)Shall exclude, only for calculating any increase in emissions that results from the 

particular project, that portion of the unit’s emissions following the project that an 

existing unit could have accommodated during the consecutive 24-month period 

used to establish the baseline actual emissions and that are also unrelated to the 

particular project, including any increased utilization due to product demand 

growth; or 

(v) In lieu of using the method set out in paragraphs (a)(i) through (a)(iv) of this 

definition, the owner or operator of the major stationary source may elect to use 

the emissions unit’s PTE in tpy.

“Regulated NSR Pollutant” means:

(a) Any pollutant for which a National Ambient Air Quality Standard has been 

promulgated and any constituents or precursors identified by the Administrator 

provided that such constituent or precursor pollutant may only be regulated under 

NSR as part of regulation of the general pollutant. Precursors identified by the 

Administrator for purposes of NSR are the following: 

(i) Volatile organic compounds and nitrogen oxides are precursors to ozone in all 

ozone nonattainment areas. 

(ii) Sulfur dioxide and nitrogen oxides are precursors to PM2.5in all PM2.5 

nonattainment areas. 

(iii)Volatile organic compounds and ammonia are precursors to PM2.5 in all PM2.5 

nonattainment areas. 

(b) PM2.5 emissions and PM10 emissions shall include gaseous emissions from a source or 

activity which condense to form particulate matter at ambient temperatures. Such 

condensable particulate matter shall be accounted for in applicability determinations 

and in establishing emissions limitations for PM2.5 and PM10 in nonattainment major 

NSR permits. Compliance with emissions limitations for PM2.5 and PM10 issued prior 

to January 1, 2011 shall not be based on condensable particulate matter unless 

required by the terms and conditions of the permit or the applicable SIP. Applicability 

determinations made prior to this date without accounting for condensable particulate 

matter shall not be considered in violation of this section unless the SIP required 

condensable particulate matter to be included. 

“Replacement Unit” means an emissions unit for which all the criteria listed in 

paragraphs (a) through (d) of this definition are met. No creditable emission reductions 

shall be generated from shutting down the existing emissions unit that is replaced. 

(a) The emissions unit is a reconstructed unit within the meaning of 40 CFR 60.15(b)(1), 

or the emissions unit completely takes the place of an existing emissions unit. 

(b) The emissions unit is identical to, or functionally equivalent to, the replaced 

emissions unit.

(c) The replacement does not alter the basic design parameters of the process unit.

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(d) The replaced emissions unit is permanently removed from the major stationary 

source, otherwise permanently disabled, or permanently barred from operation by a 

permit that is enforceable as a practical matter. If the replaced emissions unit is 

brought back into operation, it shall constitute a new emissions unit. 

“Secondary Emissions” means emissions which would occur as a result of the 

construction or operation of a major stationary source or major modification, but do not 

come from the major stationary source or major modification itself. Secondary emissions 

must be specific, well defined, quantifiable, and impact the same general area as the 

stationary source or modification which causes the secondary emissions. Secondary 

emissions include emissions from any offsite support facility which would not be 

constructed or increase its emissions except as a result of the construction or operation of 

the major stationary source or major modification. Secondary emissions do not include 

any emissions which come directly from a mobile source, such as emissions from the 

tailpipe of a motor vehicle, from a train, or from a vessel. 

“Shutdown” means the cessation of operation of any air pollution control equipment or 

process equipment for any purpose. 

“Significant” means, in reference to a net emissions increase or the potential of a source 

to emit any of the following pollutants, a rate of emissions that would equal or exceed 

any of the following rates:

Carbon monoxide: 100 tpy. 

Nitrogen oxides: 40 tpy. 

Sulfur dioxide: 40 tpy. 

Ozone: 40 tpy of VOCs or nitrogen oxides in areas classified as “marginal” or 

“moderate”; 

25 tpy of VOCs or nitrogen oxides in areas classified as “serious” or “severe”; 

or 

0 tpy of VOCs or nitrogen oxides in areas classified as “extreme.” 

PM10: 15 tpy. 

PM2.5: 10 tpy of direct PM2.5 emissions; 

40 tpy of sulfur dioxide emissions; 

40 tpy of nitrogen dioxide emissions; or 

40 tpy of volatile organic compound emissions. 

Lead: 0.6 tpy. 

“Significant Emissions Increase” means, for a regulated NSR pollutant, an increase in 

emissions that is significant for that pollutant.

“Startup” means the setting into operation of any air pollution control equipment or 

process equipment for any purpose except routine phasing in of process equipment.

“Surplus” means the amount of emission reductions that are, at the time of generation 

and at time of use of an Emissions Reduction Credit (ERC), not otherwise required by 

federal, state, or local law, not required by any legal settlement or consent decree, and not 

relied upon to meet any requirement related to the California State Implementation Plan 

(SIP). However, emission reductions required by a state statute that provides that the 

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subject emission reductions shall be considered surplus may be considered surplus for 

purposes of this Rule if those reductions meet all other applicable requirements. 

Examples of federal, state, and local laws, and of SIP-related requirements, include, but 

are not limited to, the following:

(a) The federally-approved California SIP; 

(b) Other adopted state air quality laws and regulations not in the SIP, including but not 

limited to, any requirement, regulation, or measure that: (1) the District or the state 

has included on a legally-required and publicly-available list of measures that are 

scheduled for adoption by the District or the State in the future; or (2) is the subject of 

a public notice distributed by the District or the State regarding an intent to adopt 

such revision; 

(c) Any other source- or source-category specific regulatory or permitting requirement, 

including, but not limited to, Reasonable Available Control Technology (RACT), 

New Source Performance Standards (NSPS), National Emission Standards for 

Hazardous Air Pollutants (NESHAP), Best Available Control Measures (BACM), 

Best Available Control Technology (BACT), and the Lowest Achievable Emission 

Rate (LAER); and

(d) Any regulation or supporting documentation that is required by the federal Clean Air 

Act but is not contained or referenced in 40 CFR Part 52, including but not limited to: 

assumptions used in attainment and maintenance demonstrations (including 

Reasonable Further Progress demonstrations and milestone demonstrations), 

including any proposed control measure identified as potentially contributing to an 

enforceable near-term emissions reduction commitment; assumptions used in 

conformity demonstrations; and assumptions used in emissions inventories. 

“Temporary source” means temporary emission sources such as pilot plants, and 

portable facilities which will be terminated or located outside the District after less than a 

cumulative total of 90 days of operation in any 12 continuous months.

“Temporary clean coal technology demonstration project” means a clean coal 

technology demonstration project that is operated for a period of 5 years or less, and 

which complies with the State Implementation Plan for the State in which the project is 

located and other requirements necessary to attain and maintain the national ambient air 

quality standards during the project and after it is terminated.

Volatile organic compounds (VOC) is as defined in 40 CFR 51.100(s). 

3 APPLICATION REQUIREMENTS

3.1 APPLICATION SUBMITTAL

The owner or operator of any proposed project determined to be a major stationary source 

or major modification pursuant to this rule shall submit a complete application to obtain 

an Authority to Construct on forms provided by the APCO and include the 

demonstrations listed in Subsections 3.3-3.6 of this rule in the application submittal. 

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Designating an application complete for purposes of permit processing does not preclude 

the APCO from requesting or accepting any additional information. 

3.2 APPLICATION CONTENT

At a minimum, an application for an Authority to Construct Permit shall contain the 

following information related to the proposed project: 

(a) An identification and description of all emission points, including information 

regarding all regulated NSR pollutants emitted by all emission units included in the 

project.

(b) A process description of all activities, including design capacity, which may generate 

emissions of regulated NSR pollutants in sufficient detail to establish the basis for the 

applicability of standards and fees.

(c) A projected schedule for commencing construction and operation for all emission 

units included in the project. 

(d) A projected operating schedule for each emissions unit included in the project. 

(e) A determination as to whether the project will result in any secondary emissions. 

(f) The emission rates of all regulated NSR pollutants, including fugitive and secondary

emission rates, if applicable. The emission rates must be described in tons per year 

and for such shorter-term rates as are necessary to establish compliance using the 

applicable standard reference test method or other methodology specified (i.e., 

grams/liter, ppmv or ppmw, lbs/MMBtu). 

(g) The calculations on which the emission rate information are based, including fuel 

specifications, if applicable and any other assumptions used in determining the 

emission rates (e.g., HHV, sulfur content of natural gas). 

(h) The calculations, pursuant to Subsection 1.3, used to determine applicability of this 

rule, including the emission calculations (increases or decreases) for each project that 

occurred during the contemporaneous period. 

(i) The calculations, pursuant to Subsection 4.3 (offset), used to determine the quantity 

of offsets required for the proposed project. 

(j) Identification of existing emission reduction credits or identification of internal 

emission reductions, including related emission calculations and proposed permit 

modifications required to ensure emission reductions meet the offset integrity criteria 

of being real, surplus, quantifiable, permanent and federally enforceable or 

enforceable as a practical matter.

(k) If applicable, a description of how performance testing will be conducted, including 

test methods and a general description of testing protocols. 

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3.3 LOWEST ACHIEVABLE EMISSION RATE (LAER) 

The applicant shall submit an analysis demonstrating that the Lowest Acheivable 

Emission Rate (LAER) has been proposed for each emission unit included in the project 

which emits a NSR regulated pollutant for which the area the project is to be located in 

has been classified as nonattainment by EPA and for which the new stationary source or 

modificaiton is classified as major. 

3.4 STATEWIDE COMPLIANCE

The applicant shall demonstrate that each existing major stationary source owned or 

operated by the applicant in the State is in compliance with all applicable emission 

limitations and standards under the CAA or is in compliance with an expeditious 

compliance schedule which is federally enforceable.

3.5 ANALYSIS OF ALTERNATIVES

The applicant shall submit an analysis of alternative sites, sizes, production processes, 

and environmental control techniques for the proposed source that demonstrates, that the 

benefits of the proposed source significantly outweigh the environmental and social costs 

imposed as a result of its location, construction, or modification. 

3.6 SOURCES IMPACTING CLASS I AREAS

The applicant of a proposed new major source or major modification that may affect 

visibility of a Class I area shall provide the APCO with an analysis of impairment to 

visibility that would occur as a result of the source or modification and general 

commercial, residential, industrial, and other growth associated with the project, as 

required by 40 CFR Section 51.307(b)(2) and 40 CFR Section 51.166(o). 

3.7 APPLICATION FEES

The applicant shall pay the applicable fees specified in Rule 601 Stationary Source Fees. 

4 EMISSIONS OFFSETS

4.1 OFFSET REQUIREMENTS

(a) Pollutant-specific emissions shall be offset with federally enforceable ERCs or with 

internal emission reductions. 

(b) ERCs from one or more sources may be used, alone or in combination with internal 

emission reductions, in order to satisfy offset requirements. 

(c) Emissions reductions achieved by shutting down an existing emission unit or curtailing 

production or operating hours may only be credited for offsets if such reductions are 

surplus, permanent, quantifiable, and federally enforceable; and 

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(i) The shutdown or curtailment occurred after the last day of the base year for the 

attainment plan for the specific pollutant; or

(ii) The projected emissions inventory used to develop the attainment plan explicitly 

includes the emissions from such previously shutdown or curtailed emission units. 

However, in no event may credit be given for shutdowns that occurred before 

August 7, 1977. 

4.2 TIMING

(a) Internal emission reductions used to satisfy an offset requirement must be federally 

enforceable prior to the issuance of the Authority to Construct which relies on the 

emission reductions. 

(b) Except as provided by paragraph (c) of this Subsection, the decrease in actual emissions 

used to generate ERCs or internal emission reductions must occur by no later than the 

commencement of operation of the new or modified major stationary source. 

(c) Where the new emission unit is a replacement for an emission unit that is being shut 

down in order to provide the necessary offsets, the APCO may allow up to one hundred 

eighty (180) calendar days for shakedown or commissioning of the new emission unit 

before the existing emission unit is required to cease operation. 

4.3 QUANTITY

The quantity of ERCs or internal emission reductions required to satisfy offset 

requirements shall be determined in accordance with the following: 

(a) The unit of measure for offsets, ERCs, and internal emission reductions shall be tpy. 

All calculations and transactions shall use emission rate values rounded to the nearest 

one one-hundredth (0.01) tpy. 

(b) The quantity of ERCs or internal emission reductions required shall be calculated as 

the product of the amount of increased emissions, as determined in accordance with 

paragraph (c) of this Subsection, and the offset ratio, as determined in accordance 

with paragraph (d) of this Subsection. 

(c) The amount of increased emissions shall be determined as follows: 

(i) When the offset requirement is triggered by the construction of a new major 

stationary source, the amount of increased emissions shall be the sum of the PTE 

of all emissions units.

(ii) When the offset requirement is triggered by a major modification of an existing 

major stationary source, the amount of increased emissions shall be the sum of the 

differences between the allowable emissions after the modification and the actual 

emissions before the modification for each emissions unit. 

(iii)The amount of increased emissions includes fugitive emissions if the stationary 

source is one of the categorical sources.

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(d) The ratios listed in Table 1 shall be applied based on the areas designation for each 

pollutant, as applicable. The offset ratio is expressed as a ratio of emissions increases 

to emissions reductions. 

Table 1. Federal Offset Ratio Requirements by Area Designation and Pollutant

Area Designation Pollutant Offset Ratio

Marginal Ozone Nonattainment Area NOX or VOC 1:1.1

Moderate Ozone Nonattainment Area NOX or VOC 1:1.15

Serious or Severe Ozone Nonattainment Area NOX or VOC 1:1.2

PM10 Nonattainment Area PM10, SOx, or NOx 1:1

PM2.5 Nonattainment Area PM2.5, SOx, NOx, or VOC 1:1

4.4 EMISSION REDUCTION REQUIREMENTS

(a) Internal emission reductions or ERCs used to satisfy an offset requirement shall be: 

(i) Real, surplus, permanent, quantifiable, and federally enforceable; and 

(ii) Surplus at the time of issuance of the Authority to Construct containing the offset 

requirements.

(b) Permitted sources whose emission reductions are used to satisfy offset requirements 

must appropriately amend or cancel their Authority to Construct or Permit to Operate 

to reflect their new reduced PTE, including practicably enforceable conditions to limit 

their PTE. 

(c) Emission reductions must be obtained from the same nonattainment area, except the 

APCO may allow emission reductions from another nonattainment area if the 

following conditions are met: 

(i) The other area has an equal or higher nonattainment classification than the area in 

which the source is located; and 

(ii) Emissions from such other area contribute to a violation of the national ambient 

air quality standard in the nonattainment area in which the source is located. 

(d) The use of ERCs shall not provide: 

(i) Authority for, or the recognition of, any pre-existing vested right to emit any 

regulated NSR pollutant; 

(ii) Authority for, or the recognition of, any rights that would be contrary to 

applicable law; or

(iii) An exemption to a stationary source from any emission limitations established in 

accordance with federal, state, or county laws, rules, and regulations. 

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4.5 RESTRICTIONS ON TRADING POLLUTANTS

(a) For the purposes of satisfying the offset requirements the APCO may approve 

interpollutant emission offsets for precursor pollutants on a case by case basis, except 

for PM2.5, which is subject to paragraph (d) of this Subsection. In such cases, the 

APCO shall impose, based on an air quality analysis, emission offset ratios in 

addition to the requirements of Table 1. Interpollutant emission offsets must receive 

written approval by the U.S. Environmental Protection Agency. 

(b) PM10 emissions shall not be allowed to offset Nitrogen Oxides or Volatile Organic 

Compound emissions in ozone nonattainment areas. 

(c) In no case shall the compounds excluded from the definition of Volatile Organic 

Compounds be used as offsets for Volatile Organic Compounds. 

(d) Interpollutant offsets between PM2.5 and PM2.5 precursors are not allowed unless 

modeling has been used to demonstrate appropriate PM2.5 interpollutant offset ratios 

as approved in a PM2.5 Attainment Plan. 

5 ADMINISTRATIVE REQUIREMENTS

5.1 VISIBILITY

The APCO shall consult with the Federal Land Manager on a proposed major stationary 

source or major modification that may impact visibility in any Class I Area, in 

accordance with 40 CFR 51.307. 

5.2 AMBIENT AIR QUALITY STANDARDS

The APCO may require the use of an air quality model to estimate the effects of a new or 

modified stationary source. The analysis shall estimate the effects of the new or modified 

stationary source, and verify that the new or modified stationary source will not prevent 

or interfere with the attainment or maintenance of any ambient air quality standard. In 

making this determination the APCO shall take into account the mitigation of emissions 

through offsets pursuant to this rule and the impacts of transported pollutants on 

downwind pollutant concentrations. The APCO may impose, based on an air quality 

analysis, offset ratios greater than the requirements of paragraph (d) of Subsection 4.3. 

5.3 AIR QUALITY MODELS

All estimates of ambient concentrations required pursuant to this rule shall be based on 

applicable air quality models, databases, and other requirements specified in 40 CFR Part 

51, Appendix W (“Guideline on Air Quality Models”). Where an air quality model 

specified is inappropriate, the model may be modified or another model substituted. Such 

a modification or substitution of a model may be made on a case-by-case basis or, where 

appropriate, on a generic basis. Written approval from the EPA must be obtained for any 

modification or substitution. In addition, use of a modified or substituted model must be 

subject to notice and opportunity for public comment.

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6 PRELIMINARY DECISION

6.1 PRELIMINARY DECISION

Following acceptance of an application as complete, the APCO shall perform the 

evaluations required to determine compliance with all applicable District, state and 

federal rules, regulations, or statutes and shall make a preliminary written decision as to 

whether an Authority to Construct should be approved, conditionally approved, or 

denied. The decision shall be supported by a succinct written analysis. The decision shall 

be based on the requirements in force on the date the application is deemed complete, 

except when a new federal requirement not yet incorporated into this rule applies to the 

new or modified source. 

6.2 AUTHORITY TO CONSTRUCT – PRELIMINARY DECISION

Prior to issuance of a preliminary written decision to issue an Authority to Construct for a 

new major stationary source or major modification, the APCO shall determine: 

(a) That each emissions unit(s) that constitues the project will not violate any applicable 

requirement of the District portion of the California State Implementation Plan (SIP); 

and 

(b) That the emissions from the new or modified stationary source will not interfere with 

the attainment or maintenance of any applicable national ambient air quality standard; 

and

(c) That the emission limitiation for each emission unit that constitues the project 

specifies the lowest achievable emission rate (LAER) for such units, as LAER is 

defined in this rule. 

If the APCO determines that technological or economic limitations on the application 

of measurement methodology to a particular class of sources would make the 

imposition of an enforceable numerical emission standard infeasible, the APCO may 

instead prescribe a design, operational or equipment standard. In such cases, the 

APCO shall make its best estimate as to the emission rate that will be achieved and 

must specify that rate in the application review documents. Any permits issued 

without an enforceable numerical emission standard must contain enforceable 

conditions which assure that the design characteristics or equipment will be properly 

maintained or that the operational conditions will be properly performed so as to 

continuously achieve the assumed degree of control. Such conditions shall be 

enforceable as emission limitations by private parties under section 304 of the CAA. 

The term “emission limitation” shall also include such design, operational, or 

equipment standards; and

(d) The quantity of ERCs or internal emission reductions required to offset the project, 

pursuant to Subsection 4.3; and

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(e) That all ERCs or internal emission reductions required for the proposed project have 

been identified and that they have been made federally enforceable or legally and 

practiably enforcable; and 

(f) That the quantity of ERCs or internal emission reductions determined under 

paragraph (b) of Subsection 4.3 will be surrendered prior to commencing operation. 

(g) Temporary emission sources, such as pilot plants, portable facilities which will be 

relocated outside of the nonattainment area after a short period of time (not to exceed 

12 months), and emissions resulting from the construction phase of a new source, are 

exempt from paragraphs (d), (e) and (f) of this section. 

6.3 AUTHORITY TO CONSTRUCT CONTENTS

(a) An Authority to Construct for a new major stationary source or major modification 

shall contain terms and conditions: 

(i) which ensure compliance with all applicable requirements and which are 

enforceable as a legally and practicable matter.

(ii) sufficient to ensure that the major stationary source or major modification will 

achieve LAER in accordance with paragraphs (b) and (c) of this section. 

(b) A new major stationary source shall achieve LAER for each nonattainment pollutant 

for which it would have the potential to emit at levels which equal or exceed the 

major source threshold for that nonattainment pollutant. 

(c) A major modification shall achieve LAER for each nonattainment pollutant for which 

it would result in a significant emissions increase and significant net emissions 

increase at the stationary source. This requirement applies to each proposed emissions 

unit at which the emissions increase in the pollutant would occur as a result of a 

physical change, or change in the method of operation, in the emissions unit.

6.4 AUTHORITY TO CONSTRUCT – FINAL DECISION

(a) Prior to making a final decision to issue an Authority to Construct for a new major 

stationary source or major modification, the APCO shall consider all written 

comments that were submitted within 30 days after the notice of public comment is 

published and all comments received at any public hearing(s) in making a final 

determination on the approvability of the application and make all comments 

available, including the District’s response to the comments, for public inspection in 

the same locations where the District made available preconstruction information 

relating to the proposed source or modification. 

(b) The APCO shall deny any application for an Authority to Construct if she/he finds 

that the project would not comply with the standards and requirements set forth in 

District, state, or federal rules or regulations.

(c) The APCO shall make a final decision whether to issue or deny the Authority to 

Construct proposed in the prelimiary decision after determining that the Authority to 

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Construct will or will not ensure compliance with all applicable emission standards 

and requirements. 

(d) The APCO shall notify the applicant in writing of the final decision and make such 

notification available for public inspection at the same location where the District 

made available preconstruction information and public comments relating to the 

source.

7 SOURCE OBLIGATIONS

7.1 ENFORCEMENT 

Any owner or operator who constructs or operates a source or modification not in 

accordance with the application submitted pursuant to this rule, any changes to the 

application as required by the APCO , or with the terms of its Authority to Construct, 

Authority to Construct, shall be subject to enforcement action. 

7.2 TERMINATION

Approval to construct shall terminate if construction is not commenced within eighteen 

months after receipt of such approval, if construction is discontinued for a period of 

eighteen months or more, or if construction is not completed within a reasonable time. 

The APCO may extend the 18-month period once upon a satisfactory showing of good 

cause why an extension is justified. This provision does not apply to the time period 

between construction of the approved phases of a phased construction project; each phase 

must commence construction within eighteen months of the projected and approved 

commencement date.

7.3 COMPLIANCE

Approval to construct shall not relieve any owner or operator of the responsibility to 

comply fully with applicable provisions of the SIP and any other requirements under 

local, state, or federal law.

7.4 RELAXATION IN ENFORCEABLE LIMITATIONS

At such time that a particular stationary source or modification becomes a major 

stationary source or major modification solely by virtue of a relaxation in any enforceable 

limitation which was established after August 7, 1980, on the capacity of the stationary 

source or modification otherwise to emit a pollutant, then the requirements of this rule

shall apply to the stationary source or modification as though construction had not yet 

commenced on the stationary source or modification. 

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26 

8 PUBLIC PARTICIPATION

After the APCO has made a preliminary written decision to issue an Authority to 

Construct for a new major stationary source or major modification, as specified in 

Sections 6.1 and 6.2, the APCO shall: 

(a) Publish in at least one newspaper of general circulation in the District a notice stating 

the preliminary decision of the APCO, noting how pertinent information can be 

obtained, and inviting written public comment for a 30-day period following the date 

of publication. The notice shall include the time and place of any hearing that may be 

held, including a statement of procedure to request a hearing (unless a hearing has 

already been scheduled). 

(b) No later than the date the notice of the preliminary written determination is published, 

make available in at least one location in each region in which the proposed source 

would be constructed, a copy of all materials the applicant submitted, a copy of the 

preliminary decision, a copy of the proposed permit and a copy or summary of other 

materials, if any, considered in making the preliminary written decision. 

(c) Send a copy of the notice of public comment to the applicant, EPA Region 9, any 

persons requesting such notice and any other interested parties such as: Any other 

State or local air pollution control agencies, the chief executives of the city and 

county where the source would be located; any comprehensive regional land use 

planning agency, and any State, Federal Land Manager, or Indian Governing body 

whose lands may be affected by emissions from the source or modification. 

(d) Provide opportunity for a public hearing for persons to appear and submit written or 

oral comments on the air quality impact of the source, alternatives to it, the control 

technology required, and other appropriate considerations, if in the APCO ’s 

judgment such a hearing is warranted. The APCO shall give notice of any public 

hearing at least 30 days in advance of the hearing. 

9 PLANTWIDE APPLICABILITY LIMITS (PAL)

9.1 APPLICABILITY

(a) The APCO may approve the use of an actuals PAL for any existing major stationary 

source if the PAL meets the requirements in Subsections 9.1 through 9.15. The term 

“PAL” shall mean “actuals PAL” throughout Section 9. 

(b) Any physical change in, or change in the method of operation of, a major stationary 

source that maintains its total source-wide emissions below the PAL level, meets the 

requirements of Subsections 9.1 through 9.14, and complies with the PAL Permit: 

(i) Is not a major modification for the PAL pollutant; 

(ii) Does not have to be approved through the plan’s Nonattainment Major NSR 

Program; and

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27 

(iii)Is not subject to the provisions in Subsection 9.4. 

(c) Except as provided under paragraph (b)(3) of Subsection 9.1, a major stationary 

source shall continue to comply with all applicable federal or state requirements, 

emission limitations, and work practice requirements that were established prior to 

the effective date of the PAL. 

9.2 DEFINITIONS

Unless the context otherwise requires, the following terms shall have the meanings set 

forth below for the purposes of Section 9 of this rule. When a term is not defined in these 

paragraphs, it shall have the meaning given in Section 2 of this rule or in the Clean Air 

Act.

“Actuals PAL for a major stationary source” means a PAL based on the baseline actual 

emissions of all emissions units at the source that emit, or have the potential to emit, the 

PAL pollutant. 

“Allowable emissions” means allowable emissions as defined in Section 2 of this rule, 

except as this definition is modified according to paragraphs (a) and (b) below: 

(a) The allowable emissions for any emissions unit shall be calculated considering any 

emission limitations that are enforceable as a practical matter on the emissions unit’s 

PTE.

(b) An emissions unit’s PTE shall be determined using the definition in Section 2 for this 

term, except that the words “or enforceable as a practical matter” should be added 

after “federally enforceable.” 

“Major emissions unit” means:

(a) Any emissions unit that emits, or has the potential to emit, 100 tpy or more of the 

PAL pollutant in an attainment area; or

(b) Any emissions unit that emits, or has the potential to emit, the PAL pollutant in an 

amount that is equal to or greater than the major source threshold for the PAL 

pollutant as defined by the Act for nonattainment areas.

“Plantwide Applicability Limitation (PAL)” means an emission limitation, expressed in 

tpy, for a pollutant at a major stationary source, that is enforceable as a practical matter 

and established source-wide in accordance with Subsections 9.1 through 9.15 of this rule. 

“PAL effective date” generally means the date of issuance of the PAL Permit. The PAL 

effective date for an increased PAL is the date any emissions unit which is part of the 

PAL major modification becomes operational and begins to emit the PAL pollutant.

“PAL effective period” means the period beginning with the PAL effective date and 

ending ten years later.

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“PAL major modification” means any physical change in or change in the method of 

operation of the PAL source that causes it to emit the PAL pollutant at a level equal to or 

greater than the PAL.

“PAL Permit” means the major NSR permit, the minor NSR permit, or the Title V 

permit issued by the APCO that establishes a PAL for a major stationary source. 

“PAL pollutant” means the pollutant for which a PAL is established at a major stationary 

source.

“Project” means a physical change in, or change in the method of operation of, an 

existing stationary source.

“Significant emissions unit” means an emissions unit that emits or has the potential to 

emit a PAL pollutant in an amount that is equal to or greater than the significant level (as 

defined in Section 2 of this rule or in the Clean Air Act, whichever is lower) for that PAL 

pollutant, but less than the amount that would qualify the unit as a major emissions unit. 

“Small emissions unit” means an emissions unit that emits, or has the potential to emit, 

the PAL pollutant in an amount less than the significant level (as defined in Section 2 of 

this rule or in the Clean Air Act, whichever is lower). 

9.3 PERMIT APPLICATION REQUIREMENTS

As part of an application for a Part 70 Operating Permit requesting a PAL, the owner or 

operator of a major stationary source shall submit the following information to the APCO 

for approval: 

(a) A list of all emissions units at the source designated as small, significant, or major 

based on their PTE. In addition, the owner or operator of the source shall indicate 

which, if any, federal, state or county applicable requirements, emission limitations, 

or work practices apply to each unit; 

(b) Calculations of the baseline actual emissions (with supporting documentation). 

Baseline actual emissions are to include emissions associated not only with operation 

of the unit, but also emissions associated with startup, shutdown, and malfunction; 

(c) The calculation procedures that the major stationary source owner or operator 

proposes to use to convert the monitoring system data to monthly emissions and 

annual emissions based on a 12-month rolling total for each month, as required by 

paragraph (a) of Subsection 9.13. 

9.4 GENERAL REQUIREMENTS FOR ESTABLISHING PALS

(a) The APCO may establish a PAL at a major stationary source, provided that, at a 

minimum, the requirements in paragraphs (a)(i) through (a)(vii) below are met.

(i) The PAL shall impose an annual emission limitation, in tpy, that is enforceable 

as a practical matter, for the entire major stationary source. For each month 

during the PAL effective period after the first twelve months of establishing a 

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29 

PAL, the major stationary source owner or operator shall show that the sum of 

the monthly emissions from each emissions unit under the PAL for the previous 

twelve consecutive months is less than the PAL (a 12-month average, rolled 

monthly). For each month during the first eleven months from the PAL effective 

date, the major stationary source owner or operator shall show that the sum of 

the preceding monthly emissions from the PAL effective date for each emissions 

unit under the PAL is less than the PAL. 

(ii) The PAL shall be established in a PAL Permit that meets the public participation 

requirements in Subsection 9.5 of this rule. 

(iii) The PAL Permit shall contain all the requirements of Subsection 9.7 of this rule. 

(iv) The PAL shall include fugitive emissions, to the extent quantifiable, from all 

emissions units that emit or have the potential to emit the PAL pollutant at the 

major stationary source. 

(v) Each PAL shall regulate emissions of only one pollutant. 

(vi) Each PAL shall have a PAL effective period of ten years.

(vii) The owner or operator of the major stationary source with a PAL shall comply 

with the monitoring, recordkeeping, and reporting requirements provided in 

Subsections 9.12 through 9.14 of this rule for each emissions unit under the PAL 

through the PAL effective period. 

(b) At no time (during or after the PAL effective period) are emissions reductions of a 

PAL pollutant, which occur during the PAL effective period, creditable as decreases 

for purposes of generating offsets unless the level of the PAL is reduced by the 

amount of such emissions reductions and such reductions would be creditable in the 

absence of the PAL.

9.5 PUBLIC PARTICIPATION REQUIREMENTS FOR PALS

PALs for existing major stationary sources shall be established, renewed, or increased 

through the public participation procedures in Section 9 of this rule. 

9.6 SETTING THE 10-YEAR ACTUALS PAL LEVEL

(a) Except as provided in paragraph (b) of this Subsection, the Actuals PAL level for a 

major stationary source shall be established as the sum of the baseline actual 

emissions of the PAL pollutant for each emissions unit at the source; plus an amount 

equal to the applicable significant level for the PAL pollutant as defined in Section 2 

or under the Clean Air Act, whichever is lower. When establishing the actuals PAL 

level for a PAL pollutant, only one consecutive 24-month period must be used to 

determine the baseline actual emissions for all existing emissions units. However, a 

different consecutive 24-month period may be used for each different PAL pollutant. 

Emissions associated with units that were permanently shut down after this 24-month 

period must be subtracted from the PAL level. The APCO shall specify a reduced 

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PAL level(s) (in tons/yr) in the PAL Permit to become effective on the future 

compliance date(s) of any applicable federal or state regulatory requirement(s) that 

the APCO is aware of prior to issuance of the permit.

(b) For newly constructed units (which does not include modifications to existing units) 

on which actual construction began after the 24-month period, in lieu of adding the 

baseline actual emissions as specified in paragraph (a) of Subsection 9.6, the 

emissions must be added to the PAL level in an amount equal to the PTE of the units. 

9.7 CONTENTS OF THE PAL PERMIT

The PAL permit shall contain, at a minimum, the following information: 

(a) The PAL pollutant and the applicable source-wide emission limitation in tpy;

(b) The effective date and the expiration date of the PAL Permit (PAL effective period).

(c) Specification in the PAL permit that if a major stationary source owner or operator 

applies to renew the PAL conditions in accordance with Subsection 9.10 before the 

end of the PAL effective period, then the PAL conditions shall not expire at the end 

of the PAL effective period. It shall remain in effect until a revised PAL Permit is 

issued by the APCO . 

(d) A requirement that emission calculations for compliance purposes include emissions 

from startups, shutdowns, and malfunctions; 

(e) A requirement that, once the PAL Permit expires, the major stationary source is 

subject to the requirements of Subsection 9.9; 

(f) The calculation procedures that the major stationary source owner or operator shall 

use to convert the monitoring system data to monthly emissions and annual emissions 

based on a 12-month rolling total for each month, as required by paragraph (a) of 

Subsection 9.13; 

(g) A requirement that the major stationary source owner or operator monitor all 

emissions units in accordance with the provisions under Subsection 9.12; 

(h) A requirement to retain the records required under Subsection 9.13 on-site. Such 

records may be retained in an electronic format;

(i) A requirement to submit the reports required under Subsection 9.14 by the required 

deadlines; and 

(j) Any other requirements that the APCO deems necessary to implement and enforce 

the PAL Permit. 

9.8 PAL EFFECTIVE PERIOD AND REOPENING OF PAL PERMIT

The PAL shall include the following information:

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31 

(a) PAL Effective Period. The APCO shall specify a PAL effective period of ten years 

from the date of issuance.

(b) Reopening of the PAL Permit. 

(i) During the PAL effective period, the plan shall require the APCO to reopen the 

PAL Permit to:

A. Correct typographical/calculation errors made in setting the PAL, or reflect a 

more accurate determination of emissions used to establish the PAL. 

B. Reduce the PAL if the owner or operator of the major stationary source 

creates creditable emissions reductions for use as offsets. 

C. Revise the PAL to reflect an increase in the PAL as provided under 

Subsection 9.11. 

(ii) The APCO may reopen the PAL Permit for the following:

A. Reduce the PAL to reflect newly applicable federal requirements with 

compliance dates after the PAL effective date.

B. Reduce the PAL consistent with any other requirement that is enforceable as a 

practical matter, and that the APCO may impose on the major stationary 

source under District Rules. 

C. Reduce the PAL if the APCO determines that a reduction is necessary to 

avoid causing or contributing to a National Ambient Air Quality Standard or 

PSD increment violation, or to an adverse impact on an air-quality-related 

value that has been identified for a federal Class I area by a Federal Land 

Manager and for which information is available to the general public.

(iii) Except for the permit reopening in paragraph (b)(i)(A) of Subsection 9.8 for the 

correction of typographical/calculation errors that do not increase the PAL level, 

all other reopenings shall be carried out in accordance with the public 

participation requirements of Subsection 9.5 of this rule. 

9.9 EXPIRATION OF A PAL

Any PAL which is not renewed in accordance with the procedures in Subsection 9.10 

shall expire at the end of the PAL effective period, and the requirements in Subsection 

9.9 of this rule shall apply. 

(a) Each emissions unit (or each group of emissions units) that existed under the PAL 

shall comply with an allowable emission limitation under a revised permit established 

according to the following: 

(i) Within the time frame specified for PAL renewals in paragraph (b) of Subsection 

9.10, the major stationary source shall submit a proposed allowable emission 

limitation for each emissions unit (or each group of emissions units, if such a 

distribution is more appropriate as decided by the APCO ) by distributing the 

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PAL allowable emissions for the affected major stationary source among each of 

the emissions units that existed under the PAL. If the PAL had not yet been 

adjusted for an applicable requirement that became effective during the PAL 

effective period, as required under paragraph (e) of Subsection 9.10, such 

distribution shall be made as if the PAL had been adjusted. 

(ii) The APCO will decide whether and how the PAL allowable emissions will be 

distributed and issue a revised Part 70 Operating Permit incorporating allowable 

limits for each emissions unit, or each group of emissions units, as the APCO 

determines is appropriate. 

(b) Each emissions unit(s) shall comply with the allowable emission limitation on a 12-

month rolling basis. The APCO may approve the use of monitoring systems other 

than CEMS, CERMS, PEMS, or CPMS to demonstrate compliance with the 

allowable emission limitation.

(c) Until the APCO issues the revised Part 70 Operating Permit incorporating allowable 

limits for each emissions unit, or each group of emissions units, as required under 

paragraph (a)(ii) of Subsection 9.9, the source shall continue to comply with a sourcewide, multi-unit emissions cap equivalent to the level of the PAL emission limitation.

(d) Any physical change or change in the method of operation at the major stationary 

source will be subject to the nonattainment major NSR requirements if such change 

meets the definition of Major Modification. 

(e) The major stationary source owner or operator shall continue to comply with any 

federal, state or county applicable requirements that may have applied either during 

the PAL effective period or prior to the PAL effective period except as provided in 

paragraph (b)(iii) of Subsection 9.1. 

9.10 RENEWAL OF A PAL

(a) The APCO will follow the procedures specified in Subsection 9.5 in approving any 

request to renew a PAL Permit for a major stationary source, and will provide both 

the proposed PAL level and a written rationale for the proposed PAL level to the 

public for review and comment. During such public review, any person may propose 

a PAL level for the source for consideration by the APCO . 

(b) Application deadline. A major stationary source owner or operator shall submit a 

timely application to the APCO to request renewal of the PAL Permit. A timely 

application is one that is submitted at least six months prior to, but not earlier than 

eighteen months prior to, the date of expiration of the PAL Permit. If the owner or 

operator of a major stationary source submits a complete application to renew the 

PAL Permit within this time period, then the PAL Pemit shall continue to be effective 

until the revised permit with the renewed PAL is issued.

(c) Application Requirements. The application to renew a PAL Permit shall contain the 

information required in paragraphs (c)(i) through (c)(iv) of Subsection 9.10 of this 

rule: 

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33 

(i) The information required in paragraphs (a) through (c) of Subsection 9.3; 

(ii) A proposed PAL level; 

(iii) The sum of the PTE of all emissions units under the PAL (with supporting 

documentation); and 

(iv) Any other information the owner or operator wishes the APCO to consider in 

determining the appropriate level for renewing the PAL Permit. 

(d) PAL Adjustment. In determining whether and how to adjust the PAL, the APCO will 

consider the options outlined in paragraphs (d)(i) and (d)(ii) of Subsection 9.10. 

However, in no case may any such adjustment fail to comply with paragraph (d)(iii) 

of Subsection 9.10. 

(i) If the emissions level calculated in accordance with Subsection 9.5 is equal to or 

greater than eighty (80) percent of the PAL level, the APCO may renew the PAL 

at the same level without considering the factors set forth in paragraph (d)(ii) of 

Subsection 9.10; or 

(ii) The APCO may set the PAL at a level that he determines to be more 

representative of the source’s baseline actual emissions, or that he determines to 

be appropriate considering air quality needs, advances in control technology, 

anticipated economic growth in the area, desire to reward or encourage the 

source’s voluntary emissions reductions, or other factors as specifically 

identified by the APCO in his written rationale.

(iii) Notwithstanding paragraphs (d)(i) and (d)(ii) of Subsection 9.10: 

A. If the PTE of the major stationary source is less than the PAL, the APCO shall 

adjust the PAL to a level no greater than the PTE of the source; and

B. The APCO shall not approve renewed PAL level higher than the current PAL 

unless the major stationary source has complied with the provisions of 

Subsection 9.11. 

(e) If the compliance date for a federal or state requirement that applies to the PAL 

source occurs during the PAL effective period, and if the APCO has not already 

adjusted for such requirement, the PAL shall be adjusted at the time of the affected 

Part 70 Operating Permit is renewed.

9.11 INCREASING A PAL DURING THE PAL EFFECTIVE PERIOD

(a) The APCO may increase a PAL emission limitation only if the major stationary 

source complies with the provisions in paragraphs (a)(i) through (a)(iv) of Subsection 

9.11. 

(i) The owner or operator of the major stationary source shall submit a complete 

application to request an increase in the PAL limit for a PAL major modification. 

Such application shall identify the emissions unit(s) contributing to the increase 

16-0137.D36 of 41
34 

in emissions so as to cause the major stationary source’s emissions to equal or 

exceed its PAL.

(ii) As part of this application, the major stationary source owner or operator shall 

demonstrate that the sum of the baseline actual emissions of the small emissions 

units, plus the sum of the baseline actual emissions of the significant and major 

emissions units, assuming application of BACT-equivalent controls, plus the 

sum of the allowable emissions of the new or modified emissions unit(s), 

exceeds the PAL. The level of control that would result from BACT-equivalent 

controls on each significant or major emissions unit shall be determined by 

conducting a new BACT analysis at the time the application is submitted, unless 

the emissions unit is currently required to comply with a BACT or LAER 

requirement that was established within the preceding ten years. In such a case, 

the assumed control level for that emissions unit shall be equal to the level of 

BACT or LAER with which that emissions unit must currently comply. 

(iii) The owner or operator obtains an Authority to Construct for all emissions unit(s) 

identified in paragraph (a)(i) of Subsection 9.11, regardless of the magnitude of 

the emissions increase resulting from them. These emissions unit(s) shall comply 

with any emissions requirements resulting from the nonattainment Authority to 

Construct issuance process, even though they have also become subject to the 

PAL or continue to be subject to the PAL. 

(iv) The PAL Permit shall require that the increased PAL level shall be effective on 

the day any emissions unit that is part of the PAL major modificaiton becomes 

operational and begins to emit the PAL pollutant. 

(b) The APCO shall calculate the new PAL as the sum of the allowable emissions for 

each modified or new emissions unit, plus the sum of the baseline actual emissions of 

the significant and major emissions units (assuming application of BACT-equivalent 

controls as determined in accordance with paragraph (a)(ii) of Subsection 9.11), plus 

the sum of the baseline actual emissions of the small emissions units.

(c) The PAL Permit shall be revised to reflect the increased PAL level pursuant to the 

public notice requirements of Subsection 9.5. 

9.12 MONITORING REQUIREMENTS FOR PALS

(a) General requirements.

(i) The PAL Permit must include enforceable requirements for the monitoring 

system that accurately determines plantwide emissions of the PAL pollutant in 

terms of mass per unit of time. Any monitoring system authorized for use in the 

PAL conditions must be based on sound science and meet generally acceptable 

scientific procedures for data quality and manipulation. Additionally, the 

information generated by such system must meet minimum legal requirements 

for admissibility in a judicial proceeding to enforce the PAL permit. 

16-0137.D37 of 41
35 

(ii) The PAL monitoring system must employ one or more of the four general 

monitoring approaches meeting the minimum requirements set forth in 

paragraphs (b)(i) through (b)(iv) of Subsection 9.12 and must be approved by the 

APCO . 

(iii) Notwithstanding paragraph (a)(ii) of Subsection 9.12, the PAL monitoring 

system may also employ an alternative monitoring approach that meets 

paragraph (a)(i) of Section 7.12 if approved by the APCO . 

(iv) Failure to use a monitoring system that meets the requirements of Subsection 

9.12 renders the PAL invalid. 

(b) Minimum performance requirements for approved monitoring approaches. The 

following are acceptable general monitoring approaches when conducted in 

accordance with the minimum requirements in paragraphs (c) through (i) of 

Subsection 9.12: 

(i) Mass balance calculations for activities using coatings or solvents;

(ii) CEMS;

(iii) CPMS or PEMS; and

(iv) Emission factors.

(c) Mass Balance Calculations. An owner or operator using mass balance calculations to 

monitor PAL pollutant emissions from activities using coatings or solvents shall meet 

the following requirements:

(i) Provide a demonstrated means of validating the published content of the PAL 

pollutant that is contained in or created by all materials used in or at the 

emissions unit; 

(ii) Assume that the emissions unit emits all of the PAL pollutant that is contained in 

or created by any raw material or fuel used in or at the emissions unit, if it cannot 

otherwise be accounted for in the process; and 

(iii) Where the vendor of a material or fuel which is used in or at the emissions unit 

publishes a range of pollutant content from such material, the owner or operator 

must use the highest value of the range to calculate the PAL pollutant emissions 

unless the APCO determines there is site-specific data or a site-specific 

monitoring program to support another content within the range. 

(d) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall 

meet the following requirements:

(i) The CEMS must comply with applicable performance specifications found in 40 

CFR Part 60, Appendix B; and 

(ii) The CEMS must sample, analyze, and record data at least every fifteen minutes 

while the emissions unit is operating.

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36 

(e) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL 

pollutant emissions shall meet the following requirements:

(i) The CPMS or PEMS must be based on current site-specific data demonstrating a 

correlation between the monitored parameter(s) and the PAL pollutant emissions 

across the range of operation of the emissions unit; and 

(ii) Each CPMS or PEMS must sample, analyze, and record data at least every fifteen 

minutes, or at another, less frequent interval approved by the APCO while the 

emissions unit is operating.

(f) Emission Factors. An owner or operator using emission factors to monitor PAL 

pollutant emissions shall meet the following requirements:

(i) All emission factors shall be adjusted, if appropriate, to account for the degree of 

uncertainty or limitations in the factors’ development;

(ii) The emissions unit shall operate within the designated range of use for the 

emission factor, if applicable; and

(iii) If technically practicable, the owner or operator of a significant emissions unit 

that relies on an emission factor to calculate PAL pollutant emissions shall 

conduct validation testing to determine a site-specific emission factor within six 

months of permit issuance unless the APCO determines that testing is not 

required. 

(g) A source owner or operator must record and report maximum potential emissions 

without considering enforceable emission limitations or operational restrictions for an 

emissions unit during any period of time whenever there is no monitoring data unless 

another method for determining emissions during such periods is specified in the PAL

Permit.

(h) Notwithstanding the requirements in paragraphs (c) through (g) of Subsection 9.12, 

where an owner or operator of an emissions unit cannot demonstrate a correlation 

between the monitored parameter(s) and the PAL pollutant emissions rate at all 

operating points of the emissions unit, the APCO shall, at the time of permit issuance:

(i) Establish default value(s) for determining compliance with the PAL based on the 

highest potential emissions reasonably estimated at such operating point(s); or 

(ii) Determine that operation of the emissions unit during operating conditions when 

there is no correlation between monitored parameter(s) and the PAL pollutant 

emissions is a violation of the PAL.

(i) Revalidation. All data used to establish the PAL pollutant must be revalidated 

through performance testing or other scientifically valid means approved by the 

APCO . Such testing must occur at least once every five years after issuance of the 

PAL Permit.

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9.13 RECORDKEEPING REQUIREMENTS

(a) The PAL Permit shall require an owner or operator to retain a copy of all records 

necessary to determine compliance with any requirement of Section 9 and of the 

PAL, including a determination of each emissions unit’s 12-month rolling total 

emissions, for five years from the date of such record. 

(b) The PAL Permit shall require an owner or operator to retain a copy of the following 

records for the duration of the PAL effective period plus five years: 

(i) A copy of the PAL Permit application and any applications for revisions to the 

PAL Permit; and

(ii) Each annual certification of compliance pursuant to title V and the data relied on 

in certifying the compliance.

9.14 REPORTING AND NOTIFICATION REQUIREMENTS

The owner or operator shall submit semi-annual monitoring reports and prompt deviation 

reports to the APCO , in accordance with the the applicable title V oerpating permit 

program. The reports shall meet the requirements in paragraphs (a) through (c) of 

Subsection 9.14. 

(a) Semiannual Report. The semiannual report shall be submitted to the APCO within 

thirty days of the end of each reporting period. This report shall contain the 

information required in paragraphs (a)(i) through (a)(vii) of Subsection 9.14: 

(i) The identification of owner and operator and the permit number; 

(ii) Total annual emissions (in tpy) based on a 12-month rolling total for each month 

in the reporting period pursuant to paragraph (a) of Subection 9.13. 

(iii) All data relied upon, including, but not limited to, any quality assurance or 

quality control data, in calculating the monthly and annual PAL pollutant 

emissions;

(iv) A list of any emissions units modified or added to the major stationary source 

during the preceding 6-month period; 

(v) The number, duration, and cause of any deviations or monitoring malfunctions 

(other than the time associated with zero and span calibration checks), and any 

corrective action taken;

(vi) A notification of a shutdown of any monitoring system, whether the shutdown 

was permanent or temporary, the reason for the shutdown, the anticipated date 

that the monitoring system will be fully operational or replaced with another 

monitoring system, whether the emissions unit monitored by the monitoring 

system continued to operate, and the calculation of the emissions of the pollutant 

or the number determined by method included in the permit, as provided by 

paragraph (g) of Subsection 9.12; and 

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(vii) A signed statement by the responsible official (as defined by the applicable title 

V operating permit program) certifying the truth, accuracy, and completeness of 

the information provided in the report. 

(b) Deviation Report. The major stationary source owner or operator shall promptly 

submit reports of any deviations or exceedance of the PAL conditions, including 

periods where no monitoring is available. A report submitted pursuant to 40 CFR 

70.6(a)(3)(iii)(B) shall satisfy this reporting requirement. The deviation reports shall 

be submitted within the time limits prescribed by the affected Part 70 Operating 

Permit. The reports shall contain the following information:

(i) The identification of owner and operator and the permit number; 

(ii) The PAL requirement that experienced the deviation or that was exceeded;

(iii) Emissions resulting from the deviation or the exceedance; and 

(iv) A signed statement by the responsible official certifying the truth, accuracy, and 

completeness of the information provided in the report. 

(c) Revalidation Results. The owner or operator shall submit to the APCO the results of 

any revalidation test or method within three months after completion of such test or 

method. 

9.15 TRANSITION REQUIREMENTS

The APCO may not issue a PAL that does not comply with the requirements in 

Subsections 9.1 through 9.15 after the EPA has approved regulations incorporating these 

requirements into the District portion of the California SIP.

10 INVALIDATION

If any provision of this rule or the application of such provision to any person or 

circumstance, is held invalid, the remainder of this rule or the application of such 

provision to persons or circumstances other than those as to which it is held invalid, shall 

not be affected thereby. 

16-0137.D41 of 41