## STATE OF CALIFORNIA

ENVIRONMENTAL PROTECTION AGENCY 

# AIR RESOURCES BOARD

P. O. Box 2815 Sacramento, California 95812

September 15, 2010

ARB Staff Rule Review Results

To: Mr. Kevin J. Williams, Program Coordinator Sacramento Metropolitan Air Quality Management Dist rict Telephone Number: (916) 874-4851 e-mail: kjwilliams@airquality.org

From: Alex Krichevsky, (916) 324-6222 e-mail: akrichev@arb.ca.gov

The following proposed rules, which are scheduled f or a hearing to be held by your District Board on September 23, 2010, were received by us on August 24, 2010, for our review:

Rule 202 New Source Review Rule 214 Federal New Source Review Rule 215 Agricultural Permit Requirements and New Agricultural Permit

Review

The Air Resources Board staff has reviewed the rule s and, based on the information available to us at this time, we have no comments.

The rules were examined by the Stationary Source Di vision and by the Monitoring and Laboratory Division.

If you have any questions, please contact me by e-m ail or at the telephone number above.SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

September 23, 2010 214-1 RULE 202

- 214 – FEDERAL NEW SOURCE REVIEW

Adopted 09-23-10

INDEX

100 GENERAL 101 PURPOSE 102 APPLICABILITY 103 SEVERABILITY 110 EXEMPTION: EMERGENCY EQUIPMENT

111 EXEMPTION: TEMPORARY SOURCE 111 [RESERVED] 112 EXEMPTION: NON-MAJOR AGRICULTURAL STATIONARY SO URCE AND NONMAJOR MODIFICATIONS 113 EXEMPTION: NOTIFICATION REQUIREMENTS 114 EXEMPTION: REPLACEMENT EQUIPMENT 115 EXEMPTION: RULE COMPLIANCE 116 EXEMPTION: ALTERNATIVE SITING 117 EXEMPTION: PM10 ATTAINMENT

200 DEFINITIONS 201 ACTUAL EMISSIONS 202 ACTUAL INTERRUPTIONS OF ELECTRICAL POWER 203 AMBIENT AIR QUALITY STANDARDS 204 BEST AVAILABLE CONTROL TECHNOLOGY 205 CARGO CARRIERS 206 CEQA 207 COMMENCING OPERATION 208 CONSTRUCTION COMMENCES 209 CONTIGUOUS PROPERTY 210 COST-EFFECTIVE 211 CREDITABLE INCREASES AND DECREASES 212 EMISSION INCREASE 213 EMISSION OFFSET 214 EMISSIONS LIMITATION 215 EMISSIONS UNIT 216 EXISTING EMISSIONS UNIT 217 FEDERAL MAJOR MODIFICATION 218 FUGITIVE EMISSIONS 219 HAZARDOUS AIR POLLUTANT 220 HISTORIC ACTUAL EMISSIONS 221 HISTORIC POTENTIAL EMISSIONS 222 IDENTICAL EMISSIONS UNIT 223 MAJOR MODIFICATION 224 MAJOR STATIONARY SOURCE 225 MODIFICATION 226 NEW EMISSIONS UNIT 227 NONATTAINMENT POLLUTANT 228 PEAKING POWER PLANT 229 PLANTWIDE APPLICABILITY LIMIT (PAL) 230 PM10 231 PM2.5
2 32 PORTABLE EQUIPMENT 232 [RESERVED] 233 POTENTIAL TO EMIT 234 PRECURSOR 235 PRIORITY RESERVE BANKSACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

214-2 September 23, 2010 236 PROJECT 237 PROPOSED EMISSIONS 238 QUARTER/QUARTERLY 239 RECONSTRUCTED SOURCE 240 REGULATED AIR POLLUTANT 241 SACRAMENTO FEDERAL NONATTAINMENT AREA FOR OZONE 242 SACRAMENTO FEDERAL NONATTAINMENT AREA FOR PM2.5 243 STATIONARY SOURCE

244 TEMPORARY SOURCE [RESERVED]

300 STANDARDS 301 BEST AVAILABLE CONTROL TECHNOLOGY 302 EMISSION OFFSET REQUIREMENTS, GENERAL 303 EMISSION OFFSET RATIOS 304 INTERPOLLUTANT EMISSION OFFSETS EXCEPT FOR PM2. 5 305 PM2.5 INTERPOLLUTANT EMISSION OFFSETS 306 AMBIENT AIR QUALITY STANDARDS 307 DENIAL, FAILURE TO MEET STANDARDS
308 DENIAL, FAILURE TO MEET CEQA 308 [RESERVED]

400 ADMINISTRATIVE REQUIREMENTS 401 ALTERNATIVE SITING 402 COMPLETE APPLICATION 403 AIR QUALITY MODELS 404 ENHANCED NEW SOURCE REVIEW 405 PRELIMINARY DECISION 406 PUBLICATION AND PUBLIC COMMENT 407 PUBLIC INSPECTION
408 SUBMITTAL OF BACT DETERMINATIONS 408 [RESERVED] 409 AUTHORITY TO CONSTRUCT, FINAL ACTION 410 REQUIREMENTS, AUTHORITY TO CONSTRUCT AND PERMIT TO OPERATE 411 ISSUANCE, PERMIT TO OPERATE 412 REGULATIONS IN FORCE GOVERN 413 EMISSION AND OFFSET CALCULATIONS 414 PLANTWIDE APPLICABILITY LIMITS 415 POWER PLANTS

500 MONITORING AND RECORDS (NOT APPLICABLE)SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

September 23, 2010 214-3 100 GENERAL

101 PURPOSE: The purpose of this rule is to provide for the iss uance of authorities to construct and permits to operate at new and modified new and modified major stationary air pollution sources and to provide mechanisms, in cluding emission offsets, by which authorities to construct such sources may be grante d without interfering with the attainment or maintenance of ambient air quality st andards.

101.1 A facility in possession of a valid Title V O perating Permit issued pursuant to Rule 207, TITLE V - FEDERAL OPERATING PERMIT PROGRA M, seeking a permit for a new emissions unit or a modified emiss ions unit which qualifies as a significant Title V modification, may choose to hav e their permit reviewed through an Enhanced New Source Review process, thereby meet ing all the procedural requirements specified in Sections 401 through 408 of Rule 207, TITLE V - FEDERAL OPERATING PERMIT PROGRAM and the compliance requirements in Section 305 of Rule 207, TITLE V - FEDERAL OPERA TING PERMIT PROGRAM. The Title V Operating Permit may be amende d administratively to reflect this permitting action.

102 APPLICABILITY : This rule shall apply to all new emissions units located at new and modified major stationary sources and emissions units and all modifications to existi ng stationary sources and emissions units which are subject to Rule 201, GENERAL PERMIT REQUIREMENTS, except for emissions units exe mpted by Rule 201, must be included in the potential to emit of the stationary source unless the emission unit emits less than 2 pounds per day of each pollutant. This rule shall not apply to prescribed burning of forest, or range land, road construction or any other non-stationary source common to timber harvesting. This Section 102 shal l not be used to exempt any stationary source or modification, which would be s ubject to review under US Environmental Protection Agency regulations, from p ermit requirements.

The Enhanced New Source Review process applies only to facilities in possession of a valid Title V Operating Permit, which are installin g a new emissions unit or performing a Title V modification as defined in Rule 207, TITLE V - FEDERAL OPERATING PERMIT PROGRAM, and which have specifically requested in w riting, in the permit application package, to have the application reviewed pursuant to the Enhanced New Source Review process.

No te: Major sources are subject to this rule and Rule 214, FEDERAL NEW SOURCE
REVIEW.

103 SEVERABILITY : If a court of competent jurisdiction issues an o rder that any provision of this rule is invalid, it is the intent of the Board of Directors of the District that other provisions of this rule remain in full force and affect effect to the extent allowed by law.

110 EXEMPTION : EMERGENCY EQUIPMENT: The Air Pollution Control Officer shall exempt an emissions unit from the requirements of S ections 302 and 303, unless installation of such equipment would result in a ma jor modification or be a major source, in and of itself; if the stationary source and emissions unit are not a major stationary

source or are not a major modification and if it would provide emergency electrical power, emergency water pumping for flood control or fire f ighting, emergency potable water pumping, or emergency sewage pumping provided the f ollowing requirements are met. 110.1 Operation for maintenance purposes shall not exceed 100 hours per year, and such maintenance shall be scheduled in cooperation with the District so as to limit air quality impact, and 110.2 Operation of the equipment shall not exceed a total of 200 hours per year, including maintenance operation, and 110.3 Operation of the equipment shall not be for s upplying power to a serving utility for Comment [LY1]: As written, the rule would only apply to existing major sources.

Please revise to make it clear that rule also applies

to both new and modified major sources. Same fix is

needed in Section 102.

Comment [LY2]: In Section 102 you revised the language so that any Title V

modification can re quest use of the Enhanced NSR process. This change should be

reflected here as well.

Comment [LY3]: There seems to be something missing here. Applicability applies to all EU’s subject to Rule 201, and then the same sentence goes on to impose a requirement of what must be

included in PTE of the SS.

Comment [LY4]: Exemption should only apply if not otherwise triggering federal offset requirements.SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

214-4 September 23, 2010 distribution on the grid, and 110.4 Operation for other than maintenance purposes shall be limited to actual interruptions of electrical power by the serving ut ility, emergency water pumping for flood control or fire fighting, emergency potab le water pumping, or emergency sewage pumping, or 110.5 Operation for other than maintenance purposes shall be limited to maintaining the safety and preserving the integrity of nuclear power generating systems.

111 [RESERVED]

111 EXEMPTION : TEMPORARY SOURCE: The Air Pollution Control Officer shall exempt an emissions unit from the requirements of Sections 302 and 303, if it is
111.1 A temporary source; and
111.2 Is not a major stationary source or major modificat ion or is not located at a major stationary source; and
111.3 The emission increase for the project calculated pu rsuant to Section 413.3 does not exceed the following levels: Pollutant lb/day Volatile organic compounds 150 Nitrogen oxides 150 Sulfur oxides 150 PM10 80 Carbon monoxide 550

112 EXEMPTION: NON-MAJOR AGRICULTURAL STATIONARY SOURCE AND NONMAJOR MODIFICATIONS: An agricultural emission unit that is not a major s tationary source or major modification is exempt from the req uirements of this rule.

113 EXEMPTION : NOTIFICATION REQUIREMENTS: The requirements of Sections 405, 406, 407, and 409.2 relating to notification, publi cation, and public inspection of Preliminary Decisions; and notification, publicatio n, and public inspection of Final Action shall not apply if the application is for any new o r modified emissions unit where the combined potential to emit from the project, would have an increase in potential to emit as defined in Section 413.1 of less than the amount s listed below. This exemption does not apply if the application is reviewed under the Enhanced New Source Review process pursuant to Section 404 or for any new or modified emissions unit where emission offsets are required pursuant to Section 302: Pollutant Volatile organic compounds 5,000 pounds per quarterNitrogen oxides 5,000 pounds per quarterSulfur oxides 13,650 pounds per quarterPM10 7,300 pounds per quarter PM2.5 10 tons per year Carbon monoxide 49,500 pounds per quarter

114 EXEMPTION: REPLACEMENT EQUIPMENT: The requirements of Sections 302 and 303 shall not apply to replacement equipment where 114.1 The replacement unit(s) is an identical emiss ions unit(s); or 114.2 The replacement unit(s) is not a major source or major modification and serves the identical function as the unit(s) being replace d where the maximum rating and the potential to emit any pollutant will not be greater from the new or modified emission unit(s) than the replaced units, and the emission increase calculated pursuant to Section 413.2 does not excee d the following levels: Pollutant lb/day Volatile organic compounds 136 Nitrogen oxides 136 Sulfur oxides 150 Comment [LY5]: Please revise to clarify the District’s intention. Only non major SS and non major mods should be exempted.SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

September 23, 2010 214-5 PM10 80 CO 550 This exemption does not apply to the replacing of a ir pollution control equipment pursuant to Section 225.3e.

115 EXEMPTION: RULE COMPLIANCE: The requirements of Sections 302 and 303 shall not apply to modifications necessary to comply with standards contained in Regulation 4, PROHIBITIONS, or in the State Implementation Plan. Where more than one compliance option is allowed, this exemption only applies to t he emissions resulting from the least emissive option. The incremental emissions differe nce between the least emissive option and the selected option must comply with Sections 3 02 and 303. This exemption shall not apply to modifications in production rate, hour s of operation, or other changes or additions to existing equipment not necessary for c ompliance with standards contained in District Regulation 4, PROHIBITIONS, or in the Stat e Implementation Plan. This exemption also does not apply if the modifications for compliance with standards contained in Regulation 4, PROHIBITIONS, or the Sta te Implementation Plan are major modifications under the United States Environmental Protection Agency regulations promulgated pursuant to Title I of the Federal Clea n Air Act, including 40 CFR Part 51.

116 EXEMPTION: ALTERNATIVE SITING: If the permit applicant demonstrates that a proposed modification to an existing stationary sou rce would not constitute a Federal Major Modification, the application for Authority t o Construct such modification shall not be subject to Section 401, Alternative Siting.

117 EXEMPTION: PM10 ATTAINMENT: The requirements of this rule shall not apply for PM10, if EPA re-designates Sacramento County as att ainment for the federal PM10 National Ambient Air Quality Standard as codified i n 40 CFR 81.305.

200 DEFINITIONS : Unless otherwise defined below, the terms in thi s rule are defined in Rule 101, GENERAL PROVISIONS AND DEFINITIONS, Rule 201, GENER AL PERMIT REQUIREMENTS, Rule 204, EMISSION REDUCTION CREDITS, and Rule 207, TITLE V - FEDERAL OPERATING PERMIT PROGRAM.

201 ACTUAL EMISSIONS: Measured or estimated emissions which most accurat ely represent the emissions from an emissions unit.

202 ACTUAL INTERRUPTIONS OF ELECTRICAL POWER: When electrical service is interrupted by an unforeseeable event.

203 AMBIENT AIR QUALITY STANDARDS : State and national National ambient air quality standards established pursuant to 42 U.S.C Section 7409 of the Federal Clean Air Act or California Health and Safety Code Section 39606

.

204 BEST AVAILABLE CONTROL TECHNOLOGY (BACT) :204.1 For any emissions unit the most stringent of: a. The most effective emission control device, emis sion limit, or technique, singly or in combination, which has been required o r used for the type of equipment comprising such an emissions unit unless the applicant demonstrates to the satisfaction of the Air Polluti on Control Officer that such limitations required on other sources have not been demonstrated to be achievable in practice. b. Any alternative basic equipment, fuel, process, emission control device or technique, singly or in combination, determined to be technologically feasible and cost-effective by the Air Pollution Co ntrol Officer. 204.2 In making a BACT determination for each regulated air nonattainment pollutant the Air Pollution Control Officer may consider the overall effect of the determination on other regulated air pollutants. I n some cases the lowestSACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

214-6 September 23, 2010 emission rates may be required for one or more regu lated air pollutants at the cost of not achieving the lowest emission rate for other pollutants. The Air Pollution Control Officer shall discuss these consi derations in the Preliminary Decision prepared pursuant to Section 405. 204.3 Under no circumstances shall BACT be determin ed to be less stringent than the emission control required by any applicable provisi on of District, state or federal laws or regulations, or contained in the implementa tion plan of any State for such class or category of stationary source unless the a pplicant demonstrates to the satisfaction of the Air Pollution Control Officer t hat such limitations are not achievable.

205 CARGO CARRIERS : Cargo carriers are trains dedicated to a specifi c source.

206 CEQA : The California Environmental Quality Act, Public Resources Code, Section 21000, et seq.

207 COMMENCING OPERATION: Emissions unit becomes operational and begins to emit a regulated air pollutant.

208 CONSTRUCTION COMMENCES: A person has all necessary preconstruction approval s or permits and either has: 208.1 Begun, or caused to begin, a continuous progr am of actual on-site construction of the stationary source, to be completed within a reasonable time; or 208.2 Entered into binding agreements or contractua l obligations, which cannot be canceled or modified without substantial loss to th e owner or operator, to undertake a program of actual construction of the s ource to be completed within a reasonable time.

209 CONTIGUOUS PROPERTY : Two or more parcels of land with a common bounda ry or separated solely by a public roadway or other publi c right-of-way.

210 COST-EFFECTIVE: A cost per unit of emissions reduction which is l ower than or equivalent to the maximum unit costs, for the regul ated air pollutant or source category, of the same emission reduction through the use of B est Available Control Technology, calculated in current year dollars, in accordance w ith methodology and criteria specified in the BACT Policy developed by the District. Cost effectiveness consideration shall not apply to stationary sources that are a major statio nary source or major modification.

211 CREDITABLE INCREASES AND DECREASES: 211.1 An increase or decrease in actual emissions i s creditable only if: a. It occurs between: 1. the date five years before construction commence s on the project and 2. the date the project commences operation; and b. The Air Pollution Control Officer has not relied on it in issuing a permit which permit is in effect when the increase in actu al emissions from the particular change occurs. 211.2 An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level. 211.3 A decrease in actual emissions is creditable only to the extent that: a. The old level of actual emission or the old leve l of allowable emissions whichever is lower, exceeds the new level of actual emissions; b. It is enforceable as a practical matter at and a fter the time that actual construction on the particular change begins; and c. The Air Pollution Control Officer has not relied on it in issuing any permit under regulations approved pursuant to 40 CFR part 51 subpart I or the State has not relied on it in demonstrating attainm ent or reasonableSACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

September 23, 2010 214-7 further progress; d. It has approximately the same qualitative signif icance for public health and welfare as that attributed to the increase from the particular change. 211.4 An increase that results from a physical chan ge at a source occurs when the emissions unit on which construction occurred becom es operational and begins to emit a particular pollutant. Any replacement uni t that requires shakedown becomes operational only after a reasonable shakedo wn period, not to exceed 180 days.

212 EMISSION INCREASE: An increase calculated pursuant to Section 413.

213 EMISSION OFFSET: An emission reduction credit that compensates for an emission increase of a regulated air pollutant from a new or modified source subject to the requirements of Sections 302 and 303.

214 EMISSIONS LIMITATION : One or more permit conditions specific to an emis sions unit which restricts its maximum emissions, at or below the emissions associated with the maximum design capacity and, 214.1 Contained in and enforceable by the latest Au thority to Construct and Permit to Operate for the emissions unit, and 214.2 Enforceable pursuant to Section 410, and 214.3 Enforceable on a daily, quarterly, and where applicable, annual basis.

215 EMISSIONS UNIT: An identifiable operation or piece of process equi pment such as an article, machine, or other contrivance which contro ls, emits, may emit, or results in the emissions of any regulated air pollutant or hazardo us air pollutant (HAP), directly or as fugitive emissions. Emissions unit shall not includ e the open burning of agricultural biomass.

216 EXISTING EMISSIONS UNIT: Any emissions unit that is not a new emissions un it.

217 FEDERAL MAJOR MODIFICATION: Exclusively for the purpose of Section 116, a Major Modification as defined in 40 CFR Section 51. 165(a)(1)(v), excluding paragraph (a)(1)(v)(D) (July 1, 2009 2010 edition). 217.1 All terms used in the definition of Major Mod ification shall be as defined in 40 CFR 51.165(a)(1)(v), except that: a. the term “reviewing authority” as used in that S ection shall mean the Sacramento Metropolitan Air Quality Management Dist rict; b. the term “major stationary source” as used in th at Section means a Major Stationary Source as defined in Section 224; and c. the term “significant” as used in that Section m eans a rate of emissions that would equal or exceed the rates specified in S ection 223.1 a through f.

218 FUGITIVE EMISSIONS: Those emissions which could not reasonably pass t hrough a stack, chimney, vent or other functionally equivale nt opening.

219 HAZARDOUS AIR POLLUTANT (HAP): Any air pollutant listed pursuant to Section 112(b) (42 U.S.C Section 7412(b) of the Federal Cle an Air Act).

220 HISTORIC ACTUAL EMISSIONS:
220.1 Existing emissions units : Historic actual emissions for the existing emiss ions unit averaged over the two year period immediately preceding the date of application for an Authority to Construct. a. If the last two years are unrepresentative of no rmal source operations as determined by the Air Pollution Control Officer, th en any two consecutive years of the last five years that represent normal source operation may Comment [LY6]: This needs to

come out of R202 as well.

First draft had a 217.2 section that was duplicative of (a)(1)(v)(D), and

therefore could be excluded here, but since the .2 paragraph is deleted, it

cannot be excluded here.SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

214-8 September 23, 2010 be used. b. The daily Historic Actual Emissions for each cal endar quarter equals the actual emissions for the calendar quarter divided b y the total number of actual operating days. If there are no records for actual operating days, then use the number of permitted operating days or calendar days, whichever is less. c. If, at any time during the two year period, actu al emissions exceeded allowed or permitted emission levels, then actual e missions shall be reduced to reflect the levels that would have occur red if the unit were in compliance with all applicable limitations and rule s. 220.2 New emissions unit : Historic actual emissions for a new emissions un it located at a major stationary source or part of a major mod ification: Zero.
220.3 New emissions unit if the emissions unit is not loc ated at a major source and not part of a major modification: a. If less than one year has passed since the date of commencing operation under an issued Permit to Operate or an A uthority to Construct then the historic actual emissions, for the purpose of this rule, shall be the potential to emit. b. If one year or more but less than two years have passed since the date of issuance of the Permit to Operate or an Authorit y to Construct then the historic actual emissions shall be the actual emiss ions over the one year period immediately preceding the date of applicatio n.

221 HISTORIC POTENTIAL EMISSIONS: The historic potential emissions shall be:
221.1 New Emissions Unit: Zero.
221.2 Non-Major Modifications:

a. When determining BACT applicability, existing emiss ions units that had enforceable daily emissions limits on the Autho rity to Construct or Permit to Operate prior to modificatio n: The potential to emit of the emissions unit prior to modification as represented by the enforceable daily limiting condition on the permit. b. When determining quarterly offsets trigger and quan tity of offsets required existing emissions units that had enforcea ble quarterly emissions limits on the Authority to Construct or P ermit to Operate prior to modification: The potential to emit of the emissions unit prior to modification as represented by the enforceable q uarterly limiting condition on the permit.

c. When determining daily offsets trigger at Peaking P ower Plants, or for when determining the daily limit specified in Secti on 303.2, existing emissions units that had enforceable daily emissions limits on the Authority to Construct or Permit to Operate prior to modification: The potential to emit of the emissions unit prior t o modification as represented by the enforceable dail y limiting conditions on the permit.
221.3 All other Emission Units: a. The historic potential emissions equal to the en forceable potential to emit limit contained in the most recent Authority to Con struct or Permit to Operate, if any of the following criteria are met: i. Actual emissions are at least 80% of the potenti al to emit limit, or ii. The emissions unit was fully offset for any emi ssion increase of a non-attainment pollutant during the 5 year period p rior to application submittal , or iii

. F or SOx and CO, the latest Authority to Construct was issued and equipment installed before January 1, 1977 b. The historic actual emissions as defined in Sect ion 220.1.

222 IDENTICAL EMISSIONS UNIT: A replacement emissions unit which is the same as the Comment [LY7]: At the time

of initial installation the HAE is zero, but after installation for up to 2 years, the HAE is allowed to be the HPE when evaluating a

mod. See 40 CFR 51.165 (a)(1)(xxxv)(c). Same issue

in Section 221.

Comment [LY8]: Doesn’t R214 only apply to major sources

and mods? Should this Rule 202 language be deleted from

R214?

Comment [LY9]: Before this applicability tests can be

made for non- major mods, the section must require the

source to determine if the project is a major mod as

defined in Section 223.

Comment [LY10]: This provision must be revised as indicated to only allow units which were fully

offset within the last 5 years (ie within the contemporaneous period) to

use their PTE for emission calculation purposes.SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

September 23, 2010 214-9

original unit in all respects except for serial num ber.

223 MAJOR MODIFICATION: A Modification as defined in Section 225, to a stat ionary source classified as a major source for:
223.1 A Modification as defined in Section 225 to a major stationary source VOC or NOx emissions, which results in an emission increase in the potential to emit for the project as determined by Section 413.6 and , which when aggregated with all other creditable increases and decreases in emissio ns from the source is equal to or exceeding any of the following thresholds: : a. 25 tons per year of volatile organic compounds; or b. 25 tons per year of nitrogen oxides ;

. c. 40 tons per year of sulfur oxides; d. 15 tons per year of PM10;

e. 10 tons per year of direct PM2.5; or f. The significance level established in the attainmen t demonstration , if ammonia is determined to be a necessary part of the PM2.5 control strategy i n the attainment demonstration and is approved by EPA in the State Implementation Plan ; g. 100 tons per year of carbon monoxide; or
h. 0.6 tons per year of lead

. 223.2 PM10 or a PM10 precursor emissions, which res ults in an emission increase for the project as determined by Section 413.6, which w hen aggregated with all other creditable increases and decreases in emissio ns from the source is equal to or exceeding any of the following thresholds: a. 40 tons per year of volatile organic compounds; b. 40 tons per year of nitrogen oxides; c. 40 tons per year of sulfur oxides; or d. 15 tons per year of PM10.
223. 2 3 For purposes of determining offset location restric tions pursuant to Section 302.10, a Modification as defined in Section 225 to a major stationary source PM2.5 or a PM2.5 precursor emissions, which results in an emission increase in the potential to emit for the project as determined by Section 413.6 , which when and aggregated with all other creditable increases and decreases in emissions from the source is equal to or exceeding any of the following thresholds:

a. 10 tons per year of direct PM2.5 The levels in 22 3.1d and 22 3 .1 e ; b. 40 tons per year of sulfur dioxide; c. 40 tons per year of nitrogen oxides; d. 40 tons per year of volatile organic compounds i f volatile organic compounds is determined to be a necessary part of t he PM2.5 control strategy in the attainment demonstration and is app roved by EPA in the State Implementation Plan; or

e. The significance level established in the attainmen t demonstration 100 tons per year of ammonia , if ammonia is determined to be a necessary part of the PM2.5 control strategy in the attainmen t demonstration and is approved by EPA in the State Implementation Plan.

224 MAJOR STATIONARY SOURCE: A stationary source is a major source for the regulated air pollutant if it emits or has the pote ntial to emit a regulated air pollutant in quantities equal to or exceeding any of the followi ng thresholds: 224.1 25 tons per year of volatile organic compound s; 224.2 25 tons per year of nitrogen oxides; 224.3 100 tons per year of PM10; or 100 tons per ye ar of sulfur oxides as a PM10

precursor ; 224.4 100 tons per year of directly emitted PM2.5, or 100 tons per year of nitrogen oxides or sulfur oxides as PM2.5 precursors; or 224.5 100 tons per year of carbon monoxide; or 224.5 [RESERVED] Comment [LY11]: EPA suggests providing a separate

subsection for each NA pollutant, since a source must be major for the specific pollutant before an

emission increase can be significant and thus major for that pollutant.SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

214-10 September 23, 2010

224.6 The significance level established in the attainmen t demonstration 100 tons per year of volatile organic compounds or ammonia as a PM2.5 precursor , if volatile organic compounds or ammonia is determined to be a necessary part of the PM2.5 control strategy in the attainment demonstrat ion and is approved by EPA into the State Implementation Plan,

Emissions associated with emissions units exempt fr om permit requirements pursuant to Rule 201, GENERAL PERMIT REQUIREMENTS, except for emissions units exempted by Rule 201 shall be included in the potential to emit of the s tationary source unless the emissions unit emits less than 2 pounds per day of each pollutant. Fugitive emissions associated with the emissions unit or stationary so urce shall not be included in the potential to emit of the emissions unit or stationa ry source for the purpose of determining whether the source is major unless the source belon gs to one of the categories of stationary sources included in Rule 207, TITLE V - FEDERAL OPERATING PERMIT PROGRAM, Section 219.3.

225 MODIFICATION: Any physical change, change in method of operatio n (including change in fuel), or addition, which: 225.1 For an emissions unit would necessitate a cha nge in a permit condition or result in the potential to emit being higher than the hist oric potential emissions. 225.2 For a stationary source: a. is a modification of its any emissions unit, or b. addition of any new emissions unit. 225.3 Unless previously limited by a permit conditi on, the following shall not be considered a modification for the purpose of this r ule: a. A change in ownership. b. Routine maintenance and repair. c. A reconstructed stationary source or emissions u nit, which shall be treated as a new stationary source or emissions uni t, not as a modification. d

. The addition of a continuous emission monitoring s ystem. e. Replacing of air pollution control equipment wit h new control equipment if the emissions of the new equipment are less than or equal to those from the original piece of equipment as determined by Se ction 413.3 and the replacement is not a major modification as defined in this rule.

226 NEW EMISSIONS UNIT: An emissions unit where less than two years has pas sed since the date of commencing operation under an issued Pe rmit to Operate or an Authority to Construct whichever is earlier.

227 NONATTAINMENT POLLUTANT: Any pollutant and any precursors of such pollutan ts which have been designated "nonattainment" for the District by the US Environmental Protection Agency as codified in 40 CFR 81.305 , or which have been designated nonattainment for the District by the California Ai r Resources Board pursuant to Section 39608 of the Health and Safety Code

.

228 PEAKING POWER PLANT: A fossil-fueled combustion turbine power generatio n unit or other power generation unit with an actual annual c apacity factor of 25% or less, which is used during peak electricity demand periods, and ma y operate for short periods, with frequent start-ups and shutdowns. Emergency equipm ent that is operated in compliance with the requirements of Section 110 is not conside red a peaking power plant.

229 PLANTWIDE APPLICABILITY LIMIT (PAL): Exclusively for the purpose of Section 116, an emission limitation expressed in tons per year, for a pollutant at a major stationary source, that is enforceable as a practical matter a nd established source-wide in accordance with 40 CFR Section 51.165(f)( 2)(v 1 ) through (f)(15)

. 229.1 All terms used in 40 CFR 51.165(f) shall be a s defined in 40 CFR 51.165(a)(1) Comment [LY12]: The wording appears to conflict unless the suggested edit is made. Please clarify.

Comment [LY13]: This

definition does not include a brand new proposed unit, since it is keyed off the date of commencing operation. As the term is used within the rule, it

seems the intent should be for it to apply to new –

i.e. to be constructed units as well. Please clarify.SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

September 23, 2010 214-11 and 40 CFR 51.165(f)(2) or if not defined, as defined in 40 CFR 51.165(a)( 1) , as it each subsection exists on March 23, 2006, except that: a. the term “reviewing authority” as used in those Sections shall mean the Sacramento Metropolitan Air Quality Management Dist rict.

230 PM10: Particulate matter with an aerodynamic diameter sm aller than or equal to a nominal 10 microns as measured by an applicable reference test method or methods found in Article 2, Subchapter 6, Title 17, Califor nia Code of Regulations (commencing with Section 94100)

.

231 PM2.5: Particulate matter with an aerodynamic diameter s maller than or equal to a nominal 2.5 microns as measured by an applicable ref erence test method or methods found in Article 2, Subchapter 6, Title 17, Califor nia Code of Regulations (commencing with Section 94100)

.

232 PORTABLE EQUIPMENT: Equipment which is periodically relocated and is n ot operated more than a total of 180 days at any one stationary source in the District within a continuous 12 month period.

232 [RESERVED]

233 POTENTIAL TO EMIT: The maximum physical and operational design capaci ty to emit a pollutant. Limitations on the physical or operation al design capacity, including emissions control devices and limitations on hours of operati on, may be considered only if such limitations are incorporated into the applicable Au thority to Construct and Permit to Operate as a practically enforceable permit conditi on. The potential to emit shall include both all directly emitted and fugitive emissions. Fugitive emissions are only included in potential to emit if the source belongs to one of t he categories of stationary sources included in Rule 207, TITLE V – FEDERAL OPERATING P ERMIT PROGRAM, Section
219.3.

234 PRECURSOR: A pollutant that, when emitted into the atmospher e, may undergo either a chemical or physical change which then produces ano ther pollutant for which an ambient air quality standard has been adopted, or whose pre sence in the atmosphere will contribute to the violation of one or more ambient air quality standards. The following precursor-secondary air contaminant relationships s hall be used for the purposes of this rule:

Precursor Secondary Air Contaminant Volatile Organic a. Photochemical oxidants (Ozon e) Compound b. Organic fraction of PM10 c. Organic fraction of PM2.5, if volatile organic compounds is determined to be a necessary part of the PM2.5 control strategy in the attainment demonstration approved by EPA in the State Implementation Plan

-------------------- --------------------------- ------------ Nitrogen Oxides a. Nitrogen dioxide b. Nitrate fraction of PM10 c. Photochemical oxidants (Ozone) d. Nitrate fraction of PM2.5

-------------------- --------------------------- ------------ Sulfur Oxides a. Sulfur dioxide b. Sulfates c. Sulfate fraction of PM10 d. Sulfate fraction of PM2.5 Comment [LY14]: Suggest using the July 1, 2010 date

to reference the latest version of this regulation. Other edits made to properly

reference 40 CFR sections.

Comment [LY15]: Suggest making two separate statements, otherwise, one states that they must always be included, and one says only include in specified

cases. See also the language at the end of

Section 224.SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

214-12 September 23, 2010

-------------------- --------------------------- ------------ Ammonia a. Nitrate fraction of PM2.5, if ammonia is determined to be a necessary part of the PM2.5 control strategy in the attainment demonstration approved by EPA in the State Implementation Plan.

--------------------- -------------------------- -------------

235 PRIORITY RESERVE BANK: A depository for preserving emission reduction cr edits pursuant to Rule 205, COMMUNITY BANK AND PRIORITY R ESERVE BANK for use as an emission offset in accordance with Sections 302, 303, and 413.

236 PROJECT: A project includes all of the emissions units ass ociated with the scope of the preconstruction application for a new or modified s tationary source and any emissions units indirectly affected.

237 PROPOSED EMISSIONS: Emissions based on the potential to emit for the emissions unit.

238 QUARTER/QUARTERLY: Calendar quarters beginning January 1, April 1, Ju ly 1, and October 1.

239 RECONSTRUCTED SOURCE: Any stationary source or emissions unit undergoin g physical modification where the fixed capital cost of the new components exceeds 50 percent of the fixed capital cost of a comparable e ntirely new stationary source or emissions unit. Fixed capital cost means that capi tal needed to provide and install all the depreciable components: this includes the cost of p arts and labor. A reconstructed source shall be treated as a new stationary source or emissions unit.

240 REGULATED AIR POLLUTANT: Any air pollutant for which there is a national or state ambient air quality standard, or a precursor to suc h air pollutant.

241 SACRAMENTO FEDERAL NONATTAINMENT AREA FOR OZONE: The area defined in 40 CFR Section 81.305 for the Sacramento Metro politan area.

SACRAMENTO FEDERAL NONATTAINMENT AREA FOR PM10: All of Sacramento County.

242 SACRAMENTO FEDERAL NONATTAINMENT AREA FOR PM2.5: The area defined in 40 CFR Section 81.305 for the Sacramento Metropolit an Region.

243 STATIONARY SOURCE: Any building, structure, facility, or emissions u nit which emits or may emit any regulated air pollutant directly or as a fugitive emission. 243.1 Building, structure, facility, or emissions u nit includes all pollutant emitting activities which: a. belong to the same industrial grouping, and b. are located on one property or on two or more c ontiguous properties, and c. are under the same or common ownership, operatio n, or control or which are owned or operated by entities which are under c ommon control. 243.2 Pollutant emitting activities shall be consid ered as part of the same industrial grouping if: a. they belong to the same two-digit standard indus trial classification code,

or b. they are part of a common production process. (C ommon production process includes industrial processes, manufacturin g processes and any connected processes involving a common material.) Comment [LY16]: Since the

boundaries are different for each pollutant, it is probably best to define all three NA areas. See usage in

302.10SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

September 23, 2010 214-13

243.3 The emissions within District boundaries of c argo carriers associated with the stationary source shall be considered emissions fro m the stationary source to the extent that emission reductions from cargo carriers are proposed as emission offsets.

24 4 TEMPORARY SOURC E: Emission sources such as pilot plants and portabl e facilities that will be terminated or located outside the Dist rict after less than a cumulative total of 90 days of operation in any continuous 12 months.

244 [RESERVED]

300 STANDARDS

301 BEST AVAILABLE CONTROL TECHNOLOGY: An applicant shall apply Best Available Control Technology to a new emissions unit or modif ication of an existing emissions unit, except cargo carriers, for each emissions change of a regulated air pollutant, if the change would result in an emission increase

, calculated pursuant to Section 413.2

, of more than the levels specified in Section 301.1. Notwithstanding the preceding sentence, if the modification is a major modification, then t he applicant shall apply Best Avail able Control Technology for each regulated pollutant tha t triggers major modification requirements. 301.1 Pollutant lb/day Volatile organic compounds 0 Nitrogen oxides 0 Sulfur oxides 0 PM10 0 PM2.5 0 Carbon monoxide 550 Lead 3.3

302 EMISSION OFFSET REQUIREMENTS, GENERAL:
302.1 Except as provided in Section s 302.7 and 302.8 , a A n applicant shall provide emission offsets for a regulated air pollutant wher e the emission increase potential to emit of that pollutant, calculated pursuant to Section 413.4, meets or exceeds the following levels:

a. For new major stationary sources: Pollutant Volatile organic compounds 5,000 lb 12,500 lbs /quarter Nitrogen oxides 5,000 lb 12,500 lbs /quarter Sulfur oxides 13,650 lb 22,812 lbs /quarter PM10 7,300 lbs/quarter PM2.5 1 5 ton 100 tons /year Carbon monoxide 49,500 lb/quarter If Ammonia is determined to be a necessary part of the PM2.5 control strategy in the attainment demonstration approved b y EPA in the State Implementation Plan: Ammonia 100 ton/year b. For modifications: Pollutant Volatile organic compounds 12,500 lbs/quarter Nitrogen oxides 12,500 lbs/quarter Sulfur oxides 20,000 lbs/quarter PM10 7,300 lbs/quarter PM2.5 10 ton/year Comment [LY17]: This states that offsets are required

where the “emission

increase” meets or exceeds the listed levels, but Section 413.4 requires the summing of PTE for all EU’s

installed after 1977.

Please revise to refer to

PTE rather than emission

increaseSACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

214-14 September 23, 2010 The level set in the attainment demonstration appro ved by EPA into the State Implementation Plan for Ammonia if ammonia is determined to be a necessary part of the PM2.5 control strategy in t he attainment demonstration. 302.2 For a peaking power plant

, where if the emissions increase calculated pursuant to Section 413.4 is below the levels in Section 302 .1, an applicant shall provide emission offsets for the regulated air pollutant for new and modified stationary

sources where the daily emission increase calculated pursua nt to Section 413.4 exceeds the following levels: a. Pollutant lb/day Volatile organic compounds 150
250 Nitrogen oxides 150
250 Sulfur oxides 150 250 PM10 80 Carbon monoxide 550 302.3 Except for PM2.5 or as provided in Section 30 2.3a, b, c, or d; sufficient emission offsets shall be provided from the same calendar qu arter as the proposed emissions. The quantity of offsets required shall be determined using the calculation procedures specified in Section 413.5. a. Emission credits for volatile organic compounds and nitrogen oxides during the quarters starting April 1 and July 1 may be used to offset emission increases during any quarter except as pro vided below. 1. Emission credits from the quarter starting April 1 that will be used in the quarter starting July 1 shall not exceed mor e than 20% of a project’s volatile organic compound or nitrogen o xides offset needs, as applicable, in the quarter beginning July 1. 2. Emission credits from the quarter starting July 1 that will be used in the quarter starting April 1 shall not exceed mo re than 20% of a project’s volatile organic compound or nitrogen o xides needs, as applicable, in the quarter beginning April 1. b. Emission credits for volatile organic compounds and nitrogen oxides during quarters starting January 1 and October 1 ma y be used to offset emission increases during either quarter starting J anuary 1 and October
1. c. Emission credits for carbon monoxide, PM10, and sulfur oxides during the quarters starting January 1 and October 1 may b e used during any quarter except as provided below. 1. Emission credits from the quarter starting Janua ry 1 that will be used in the quarter starting October 1 shall not ex ceed more than 20% of a project’s carbon monoxide, PM10, and sulfur oxides offset needs, as applicable, in the quarter beginning October 1. 2. Emission credits from the quarter starting Octob er 1 that will be used in the quarter starting January 1 shall not ex ceed more than 20% of a project’s carbon monoxide, PM10, and sulfur oxides offset needs, as applicable, in the quarter beginning January 1. d. Emission credits for carbon m onoxide, PM10, and sulfur oxides during quarters starting April 1 and June 1 may be used to offset emission increases during either quarter starting April 1 an d June 1. 302.4 Emission offsets shall be obtained pursuant t o Rule 204, EMISSION REDUCTION CREDITS, Rule 205, COMMUNITY BANK AND PRI ORITY RESERVE BANK, or Rule 206, MOBILE AND TRANSPORTATIO N SOURCE EMISSION REDUCTION CREDITS, or pursuant to an adopt ed emission reduction credit rule in another air district that meets the requirements of SectionSACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

September 23, 2010 214-15 302.6. 302.5 If an application for an Authority to Constru ct is received for an emissions unit that had previously obtained emission reduction cre dits for the shutdown of that emissions unit under Rule 204, EMISSION REDUCTION C REDITS, then sufficient emission offsets shall be provided consi stent with Section 302. If the emissions unit does not trigger emission offsets in accordance with this section then the applicant shall provide sufficient emissio n offsets to offset the lesser of the amount of the emission reduction obtained pursu ant to Rule 204, EMISSION REDUCTION CREDITS or the potential to emit from the emissions unit.
302.6 Emission offsets which are required and obtained pu rsuant to permitting and/or banking actions in a district other than that in wh ich the proposed source is located may be used only if the Air Pollution Contr ol Officer has reviewed the permit conditions and/or banking action issued by t he other district in which the proposed emission offsets are obtained and made a d etermination that the impact of using such emission offsets meets the req uirements of District Rules and Regulations, Health and Safety Code Section 407 09.6, state, and federal requirements. An offset ratio not less than the le vels specified in Section 303 shall be applied as necessary to discount the offse ts and mitigate the associated impact.
302.7 Emission offsets for increases in carbon monoxide s hall not be required if the applicant, using an air quality modeling a nalysis prepared pursuant to Section 403, demonstrates to the satisfaction of the Air Po llution Control Officer that the increase in ambient concentration does not exceed 5 00 micrograms per cubic meter, 8 hour average, at and beyond the property l ine of th e stationary source. 302.7 [RESERVED]
302.8 Except for portable equipment located at a major st ationary source or that is a major st ationary source by itself, portable equipment shall be offset at the initially permitted location only. In the event such portabl e equipment is shutdown, emission reduction credits shall be granted based o n the initially permitted location. 302.8 [RESERVED] 302.9 For major stationary sources or major modific ations, emission offsets for volatile organic compounds and nitrogen oxides must be obtai ned from within the Sacramento Federal Nonattainment Area for ozone. 302.10 For major stationary sources or major modifi cations that exceed the levels in Section 223.2, emissions offsets for PM2.5 and PM2. 5 precursors must be obtained within the Sacramento Federal Nonattainmen t Area for PM2.5 and emission offsets for PM10 must be obtained within S acramento County as long as Sacramento County is a federal PM10 nonattainmen t area.

303 EMISSION OFFSET RATIOS: The applicable offset ratio for use in Section 413.5 shall be determined based on the location of the new or m odified stationary source required to provide offsets and the distance to the location of the emission offsets, as indicated in the following tables. 303.1 Except as provided in Section 303.2, an appli cant shall provide emission offsets for emissions from a proposed new or modified stationary source using the following ratios:

Emission Offset Ratio

Location of Emission Offset Volatile organic compounds or Nitrogen oxides PM2.5 or ammonia if determined to be PM2.5 precursor by Section 234 Other

Nonattainment pollutants Attainment

pollutantsSACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

214-16 September 23, 2010

Same Source 1.3 to 1.0 if used at a major stationary source or major modification at a major source

OR

1.0 to 1.0 if used at

a non

- major stationary source or for non-major modifications at a major source 1.0 to 1.0 1.0 to 1.0 1.0 to 1.0

Within 15-mile radius and within Sacramento Valley Air Basin 1.3 to 1.0 if used at a major stationary source or major modification at a major source

OR

1.2 to 1.0 if used at

a non

- major stationary source for non-major modifications at a major source

OR

1.0 to 1.0 if used at

a s tationary source with an emission increase calculated pursuant to Section 413.4 of the following levels:

≥ 5000 lb/qtr and <7500 lb/qtr, 1.2 to 1.0 1.2 to 1.0 1.1 to 1.0

Greater than 15-mile but within 50-mile radius and within Sacramento Valley Air Basin 2.0 to 1.0 2.0 to 1.0 2.0 to 1.0 1.2 to 1.0

More than 50-mile radius and within Sacramento Valley Air Basin >2.0 to 1.0 (*) >2.0 to 1.0 (*) >2.0 to 1.0 (*) >1. 2 to 1.0 (*)

(*) based on case by case determination

303.2 Applicants providing emission offsets obtaine d pursuant to Rule 205, COMMUNITY BANK AND PRIORITY RESERVE BANK and applicants provi ding emission offsets obtained pursuant to Rule 206, Mobile and Transport ation Source Emission Reduction Credits, shall provide emission offsets for all pol lutants at all distances pursuant to the following:

Emission offsets obtained from

Rule 205, COMMUNITY BANK AND PRIORITY RESERVE BANK, or Rule 206, MOBILE AND TRANSPORTATION SOURCE EMISSIONSACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

September 23, 2010 214-17 REDUCTION CREDITS Source Type/Pollutant Emission offset ratio
For use by non-major stationary sources or non

major modifications for all pollutants if the non-major modifications has an increase in emissions calculated pursuant to Section 413.4 of 250 lbs/day or less of VOC, NOx, and SOx, and 80 lbs/day or less of PM10. 1.0 to 1.0

If the non-major modification has an increase in emissions calculated pursuant to Section 413.4 that is greater than 250 lbs/day of VOC, NOx, and SOx, or greater than 80 lbs/day of PM10. 1.2 to 1.0

For use by major stationary sources or major modifications for volatile organic compounds or nitrogen oxides 1.3 to 1.0

For use by major stationary sources or major modifications for other nonattainment pollutants, except for PM2.5, and all attainment pollutants 1.2 to 1.0

For use by major stationary sources or major modifications for PM2.5 or ammonia if determined to be PM2.5 precursor by Section 234 1.0 to 1.0

304 INTERPOLLUTANT EMISSION OFFSETS EXCEPT FOR PM2.5: Interpollutant emission offsets are discouraged and may only be allowed bet ween precursor contaminants. The Air Pollution Control Officer may approve interpoll utant emission offsets for precursor pollutants on a case by case basis, except for PM2. 5 which is subject to Section 305, provided that the applicant demonstrates through th e use of an air quality model that the emission increases from the new or modified source will not cause or contribute to a violation of an ambient air quality standard. In s uch cases, the Air Pollution Control Officer shall impose, based on an air quality analy sis, emission offset ratios in addition to the requirements of Section 303. Interpollutant em ission offsets between PM10 and PM10 precursors may be allowed. PM10 emissions sha ll not be allowed to offset nitrogen oxides or volatile organic compound emissi ons in ozone nonattainment areas, nor be allowed to offset sulfur oxide emissions in sulfate nonattainment areas. In no case shall the compounds excluded from the definition of Volatile Organic Compounds be used as offsets for Volatile Organic Compounds. In terpollutant emission offsets used at a major stationary source must receive written appr oval by the US Environmental Protection Agency.

305 PM2.5 INTERPOLLUTANT EMISSION OFFSETS: Interpollutant emission offsets between PM2.5 and PM2.5 precursors are allowed at s pecific ratios as set by US EPA pursuant to the following, unless State modeling de monstrates that lower offset ratios are appropriate in an attainment plan approved by the U S Environmental Protection Agency into the State Implementation Plan:

PM2.5 Interpollutant Emission Offset Ratios
Precursor Primary PM2.5 Interpollutant Offset Ratio
NOx to Primary PM2.5 100.0 to 1.0
SOx to Primary PM2.5 40.0 to 1.0
VOC to Primary PM2.5 Not allowed unless an offset r atio is established in the attainment demonstration approved by EPA into the State Implementation PlanSACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

214-18 September 23, 2010 Ammonia to Primary PM2.5 Not allowed unless an offs et ratio is established in the attainment demonstration approved by EPA into the State Implementation Plan

NOx to SOx Not allowed unless an offset ratio is es tablished in the attainment demonstration approved by EPA into the State Implementation Plan

306 AMBIENT AIR QUALITY STANDARDS: In no case shall emissions from a new or modified stationary source, prevent or interfere wi th the attainment or maintenance of any applicable ambient air quality standard. The Air P ollution Control Officer may require the use of an air quality model to estimate the effects of a new or modified stationary source. In making this determination the Air Pollution Cont rol Officer shall take into account the mitigation of emissions through emission offsets ob tained pursuant to this rule.

307 DENIAL, FAILURE TO MEET STANDARDS: The Air Pollution Control Officer shall deny any Authority to Construct or Permit to Operat e if the Air Pollution Control Officer finds that the subject of the application would not comply with the standards set forth in District, state, or federal rules, regulations or s tatutes.

308 DENIAL, FAILURE TO MEET CEQA: The Air Pollution Control Officer shall deny an Authority to Construct or Permit to Operate if the Air Pollution Control Officer finds that the project which is the subject of the application would not comply with CEQA.
308 [RESERVED]

400 ADMINISTRATIVE REQUIREMENTS : The following administrative requirements in Sec tions 401-414 shall apply to any activities regulated by this rule, except for the review of power plants over 50 megawatts. Power plants over 50 megawatts shall be subject to the review requirements of Section 415.

401 ALTERNATIVE SITING: Except as provided in Section 116, for major sour ces or major modifications for which an analysis of alternative sites, sizes, and production processes is required under Section 173(a)(5) of the Clean Air A ct, the Air Pollution Control Officer shall require the applicant to prepare an alternati ve siting analysis that is functionally equivalent to the requirements of Division 13 of th e Public Resources Code (California Environmental Quality Act-CEQA). An authority to c onstruct shall not be issued unless the Air Pollution Control Officer has concluded, ba sed on the information contained in the alternative siting analysis, that the benefits of t he proposed source significantly outweigh the environmental and social costs imposed as a res ult of its location, construction, or modification.

402 COMPLETE APPLICATION: The Air Pollution Control Officer shall determine whether the application is complete not later than 30 days after receipt of the application, or after such longer time as both the applicant and the Air Pollution Control Officer have agreed in writing. If the Air Pollution Control Officer d etermines that the application is not complete, the applicant shall be notified in writin g of the decision specifying the information required. Upon receipt of any re-submi ttal of the application, a new 30-day period to determine completeness shall begin. Comp leteness of an application or re-submitted application shall be evaluated on the basis of the information requirements set forth in the District's List and Criteria (adopted pursuant to Article 3, 65940 through
6 5944 of Chapter 4.5 of Division l of Title 7 of the California Government Code) as it exists on the date on which the application or re-s ubmitted application was received, and on payment of the appropriate fee pursuant to Rule 301 - PERMIT FEES, STATIONARY SOURCES. The Air Pollution Control Officer may, du ring the processing of the application, request an applicant to clarify, ampli fy, correct, or otherwise supplement the information submitted in the application.SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

September 23, 2010 214-19 403 AIR QUALITY MODELS: All air quality models used for the purposes of t his rule shall be consistent with the requirements provided in the mo st recent edition of US Environmental Protection Agency "Guidelines on Air Quality Models , 40 CFR 51 Appendix W" unless the Air Pollution Control Officer finds that such model is inappropriate for use. After making such finding the Air Pollution Control Officer may designate an alternate model only after allowing for public comment, and only with concurre nce of the US Environmental Protection Agency. Credit shall not be given for s tacks higher than that dictated by good engineering practice. All modeling costs associate d with the siting of a stationary source shall be borne by the applicant.

404 ENHANCED NEW SOURCE REVIEW: Applications for which the applicant has requested review pursuant to this Section and Section 101 shall be reviewed in accordance with the procedural requirements specifi ed in Sections 401 through 408 of District Rule 207, TITLE V FEDERAL OPERATING PERMIT PROGRAM.

405 PRELIMINARY DECISION: Following acceptance of an application as complet e, the Air Pollution Control Officer shall perform the evaluat ions required to determine compliance with all applicable District, state and federal rul es, regulations, or statutes and shall make a preliminary written decision as to whether an Aut hority to Construct should be approved, conditionally approved, or denied. The d ecision shall be supported by a succinct written analysis. 405.1 Except as provided in Section 113, the Air Po llution Control Officer shall transmit to the California Air Resources Board and the US Environmental Protection Agency its preliminary written decision and analysi s for sources subject to Sections 301 or 302, upon issuance of the prelimina ry decision for a 30-day period.

406 PUBLICATION AND PUBLIC COMMENT: Except as provided in Section 113, within ten calendar days following a preliminary decision purs uant to Section 300, Standards, of this rule, the Air Pollution Control Officer shall publi sh in at least one newspaper of general circulation in the District a notice stating the pr eliminary decision of the Air Pollution Control Officer, noting how pertinent information c an be obtained, and inviting written public comment for a 30-day period following the da te 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 ha s already been scheduled). The Air Pollution Control Officer shall give notice of any public hearing at least 30 days in advance of the hearing.

407 PUBLIC INSPECTION: Except as provided in Section 113, the Air Pollut ion Control Officer shall make available for public inspection at the District's office the information submitted by the applicant and the Air Pollution Co ntrol Officer's analysis no later than the date the notice of the preliminary decision is published, pursuant to Section 406. All such information shall be transmitted no later than the date of publication to the California Air Resources Board and the US Environmental Protec tion Agency regional office, and to any party which requests such information. Informa tion submitted which contains trade secrets shall be handled in accordance with Section 6254.7 of the California Government Code and relevant sections of the California Admini strative Code.

408 SUBMITTAL OF BACT DETERMINATIONS: The Air Pollution Control Officer shall submit to the California Air Resources Board all ne w BACT determinations made by the District. A new BACT determination is any BACT det ermination made by the District for the first time for a given type of emissio n unit. All such determinations shall be made available for public comment and submitted to the C alifornia Air Resources Board by no later than 30 days after issuance of the final Auth ority to Construct containing the new BACT determination.
408 [RESERVED]SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

214-20 September 23, 2010 409 AUTHORITY TO CONSTRUCT, FINAL ACTION: 409.1 a. Except as provided in Sections 409.1b and 409.1c, the Air

Pollution Control Officer shall take final action o n the application, after considering all written comments, no later than 180 days after acceptance of an application as complete. b. The Air Pollution Control Officer shall not take final action for any project for which an Environmental Impact Report (EIR) or a Negative Declaration is being prepared until a final EIR for that project has been certified or a Negative Declaration for that projec t has been approved, and the Air Pollution Control Officer has considere d the information in that final EIR or Negative Declaration. The Air Pol lution Control Officer shall take final action on the application within w hichever of the following periods of time is longer: 1. Within 180 days after the certification of the f inal EIR or approval of the Negative Declaration, or 2. Within 180 days of the date on which the applica tion was determined complete by the Air Pollution Control Of ficer. c. The Air Pollution Control Officer shall take fin al action on applications reviewed pursuant to the Enhanced New Source Review Process no later than 18 months after acceptance of an applica tion as complete. 409.2 Except as provided in Section 113, the Air Po llution Control Officer shall provide written notice of the final action to the applicant , the US Environmental Protection Agency, and the California Air Resources Board, and shall publish such notice in a newspaper of general circulation and shall make t he notice and all supporting documents available for public inspection at the Di strict's office.

410 REQUIREMENTS, AUTHORITY TO CONSTRUCT AND PERMIT TO OPERATE: 410.1 General Conditions: As a condition for the is suance of a Permit to Operate, the Air Pollution Control Officer shall require that th e emissions unit and stationary source, and any emissions units which provide emiss ion offsets, be operated in the manner stated in making the analysis required t o determine compliance with this rule, and as conditioned in the Authority to C onstruct. 410.2 Emissions Limitations: The following emission s limitations shall be included on the Authority to Construct and Permit to Operate. a. Emission limitations which reflect Best Availabl e Control Technology, if applicable. Such condition shall be expressed in a manner consistent with testing procedures, such as ppmv NOx, g/liter VOC, or lbs/MMBtu. b. An enforceable daily emissions limitation, for e missions units subject to Sections 111, 114.2, and 302.2, and a quarterly emissions limitat ion for all regulated air pollutants, and an enforceable an nual emissions limitation for PM2.5 and for any regulated air poll utant for which the stationary source exceeds the major source or major modification thresholds listed in Section 223 or 224. Enforceab le daily emission limits are also required for emissions units not required to install BACT pursuant to Section 413.2. c. If the Air Pollution Control Officer determines that technological or economic limitations on the application of measurem ent methodology to a particular class of sources would make the imposi tion of a numerical emission standard infeasible, the Air Pollution Con trol Officer may instead prescribe a design, operational, or equipme nt standard. In such cases, the Air Pollution Control Officer shall make a best estimate as to the emission rate that will be achieved. Any permit s issued without an enforceable numerical emission standard must contai n enforceable conditions that assure that the design characterist ics or equipment will be properly maintained, or that the operational con ditions will be properly performed, so as to continuously achieve the assume d degree of control. The Air Pollution Control Officer shall discuss the determination in theSACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

September 23, 2010 214-21 Preliminary Decision prepared pursuant to Section 4 05. d. The emissions limitation shall be no less string ent than the applicable emission standards given in 40 CFR Part 60, Standar ds of Performance for New Stationary Sources, and 40 CFR Part 61 and 63, National Emission Standards for Hazardous Air Pollutants. 410.3 Emission offsets: The following conditions s hall be included on the Authority to Construct and Permit to Operate: a. Before the Air Pollution Control Officer shall a pprove or conditionally approve an application for an Authority to Construc t, the applicant shall supply evidence of a sufficient number of emission reduction credits to meet any offset obligation in accordance with this rule. b. The operation of any emissions unit which provid es emission offsets shall be subject to enforceable permit conditions, containing specific emissions and operational limitations, to ensure th at the emission reductions are provided in accordance with the prov isions of this rule. c. For major stationary sources and major modificat ions, all emission reductions claimed as offset credit shall be enforc eable as a practical

matter. d. A violation of the emission limitation provision s of any contract pursuant to Rule 204, EMISSION REDUCTION CREDITS, Section 30 3.2 shall be a violation of this rule by the owner or operator o f the permitted stationary source. e. The operation of any emissions unit which uses e mission offsets provided by another emissions unit shall be subject to enforceable permit conditions, containing specific emissions and opera tional limits, to ensure that the emission reductions are used in acc ordance with the provisions of District rules and shall continue for the reasonably expected life of the proposed emissions unit. f. Any offsets required pursuant to Sections 302, 3 03 or any other state or federal law or regulation must be surrendered prior to commencing operation of the new or modified source, and the em ission offsets shall be maintained throughout the operation of the new o r modified source which is the beneficiary of the emission offsets.

411 ISSUANCE, PERMIT TO OPERATE: In addition to the requirements of Rule 207, TITL E V FEDERAL OPERATING PERMIT PROGRAM if applicable, t he Air Pollution Control Officer shall issue a Permit to Operate an emission s unit, pursuant to Rule 201, GENERAL PERMIT REQUIREMENTS, subject to the require ments of this rule if it is determined that any offsets required as a condition of an Authority to Construct or amendment to a Permit to Operate will commence not later than the initial operation of the new or modified source, and that the emission o ffsets shall be maintained throughout the operation of the new or modified source which i s the beneficiary of the emission offsets. Further, the Air Pollution Control Office r shall determine that all conditions specified in the Authority to Construct have been c omplied with or will be complied with by the dates specified on the Authority to Construc t. Such applicable conditions shall be contained in the Permit to Operate. Where a new or modified stationary source is, in whole or in part, a replacement for an existing sta tionary source on the same property, the Air Pollution Control Officer may allow a maxim um of 90 days as a startup period for simultaneous operation of the existing stationary s ource and the new replacement

source.

412 REGULATIONS IN FORCE GOVERN: An Authority to Construct shall be granted or denied based on Best Available Control Technology a nd emission offset requirements of Sections 301, 302, and 303 in force on the date the application is deemed complete, as defined in Section 402, except when a new federal r equirement not yet incorporated into this rule applies to the new or modified source. I n addition, the Air Pollution Control Officer shall deny an Authority to Construct for an y new stationary source or modification,SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

214-22 September 23, 2010

or any portion thereof, unless: 412.1 The new source or modification, or applicable portion thereof, complies with the provisions of this rule and all other applicable di strict rules and regulations; and 412.2 The owner or operator of the proposed new or modified stationary source has demonstrated that all major stationary sources owne d or operated by such person (or by an entity controlling, controlled by, or under common control with such person) in California which are subject to emi ssion limitations are in compliance, or on a schedule for compliance, with a ll applicable emission limitations and standards in the Federal Act.

413 EMISSION AND OFFSET CALCULATIONS: The following provisions shall be used : to calculate emission increases from all new and modified emissions units. 413.1 Notification – Increase in Potential to Emit: The increase in potential to emit for purposes of determining whether Section 113 – Exemp tion: Notification Requirements applies shall be calculated by subtrac ting the potential to emit for the project prior to modification from the potentia l to emit for the project. 413.2 BACT – Emissions Increase: The emissions inc rease for the purposes of determining BACT applicability pursuant to Section 301 shall be calculated as the daily Potential to emit minus the daily Historic Po tential Emissions. The increase must be calculated as daily emissions, and calculat ed separately for each emissions unit associated with the project.
413.3 Temporary Source and Replacing of Air Pollution Control Equipment – Emis sions Increase: The emissions increase for the purposes of determining Temporary Source applicability pursuant to Section 111 or replacing of air pollution control equipment with new control equipment pursuant to Se ction 225.3e shall be calculated as the sum of emissions increases from S ection 413.2 for all emissions units in the project. 413.4 Offsets Trigger: For the purposes of determi ning whether Offsets are required pursuant to Sections 302.1 and 302.2, emissions sha ll be calculated as:. a. For SOx, PM10, and PM2.5 , and CO : the sum of the potential to emit for all emissions units at the stationary source instal led after January 1, 1977 plus the sum of the potential to emit minus Hi storic Potential Emissions for all emissions units installed prior t o January 1, 1977 and modified after January 1, 1977 as determined by Sec tion 413.5 of this rule or procedures specified in this rule at time o f modification. The increase must be calculated using daily emissio ns for peaking power plants and for purposes of Section 303.2 and quarte rly emissions for all other purposes for SOx

, and PM10

, and CO . The increase must be calculated in yearly emissions for PM2.5. b. For VOC and NOx: the sum of the potential to emi t for all emissions units at the stationary source. The increase must be cal culated using daily emissions for peaking power plants and quarterly em ission, for all other

purposes. c. For VOC and NOx for purposes of Section 303.2: the sum of the potential to emit for all emissions units at the st ationary source installed after January 1, 1977 plus the sum of the potential to emit minus Historic Potential Emissions for all emissions units install ed prior to January 1, 1977 and modified after January 1, 1977. 413.5 Quantity of Offsets Required: If offsets are required pursuant to Section 302, the quantity of offsets to be provided shall be determi ned as follows: a. Multiply the sum of all increases of the potenti al to emit minus the Historic Potential Emissions for the emissions unit s associated with a project by the appropriate offset ratio based on po llutant and location as specified in Section 303. b. The calculations shall be performed separately f or each pollutant for each calendar quarter or, where the offset threshol d is specified in tons/yr on an annual basis.SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

September 23, 2010 214-23

413.6 Emission Increase for Major Modification: Th e emissions increase from the project for purposes of Section 223.1 is the sum of the Potential to Emit for the project minus the Historic Potential Emissions for the project.

414 PLANTWIDE APPLICABILITY LIMITS: Exclusively for the purpose of Section 116, the operator of a major stationary source may apply to the Air Pollution Control Officer pursuant to Rule 201, GENERAL PERMIT REQUIREMENTS t o establish a PAL. 414.1 All PALs shall be established according to th e provisions of 40 CFR

51.165(f); and 414.2 All PALs shall comply with the requirements u nder 40 CFR 51.165(f) to either maintain, renew or retire the PAL.

415 POWER PLANTS: This section shall apply to all power plants prop osed to be constructed in the District and for which a Notice of Intention (NOI) or Application for Certification (AFC) has been accepted by the Califo rnia Energy Commission. 415.1 Within 14 days of receipt of a Notice of Inte ntion, the Air Pollution Control Officer shall notify the Air Resources Board and the Califo rnia Energy Commission of the District's intent to participate in the Notice of Intention proceeding. If the District chooses to participate in the Notice of In tention proceeding, the Air Pollution Control Officer shall prepare and submit a report to the California Air Resources Board and the California Energy Commissio n prior to the conclusion of the non-adjudicatory hearing specified in Sectio n 25509.5 of the California Public Resources Code. That report shall include, a t a minimum: a. a preliminary specific definition of Best Availa ble Control Technology for the proposed facility; b. a preliminary discussion of whether there is sub stantial likelihood that the requirements of this rule and all other District re gulations can be satisfied by the proposed facility; c. a preliminary list of conditions which the propo sed facility must meet in order to comply with this rule or any other applica ble district regulation. The preliminary determinations contained in the rep ort shall be as specific as possible within the constraints of the information contained in the Notice of Intention. 415.2 Upon receipt of an Application for Certificat ion for a power plant, the Air Pollution Control Officer shall conduct a determination of co mpliance review. This determination shall consist of a review identical t o that which would be performed if an application for a permit to construct had bee n received for the power plant. If the information contained in the Application for Certification does not meet the requirements of this rule, the Air Pollution Contro l Officer shall, within 20 calendar days of receipt of the Application for Certificatio n, so inform the California Energy Commission, and the Application for Certification s hall be considered incomplete and returned to the applicant for resubmittal. 415.3 The Air Pollution Control Officer shall consi der the Application for Certification to be equivalent to an application for a permit to con struct during the determination of compliance review, and shall apply all provision s of this rule which apply to applications for a permit to construct. 415.4 The Air Pollution Control Officer may request from the applicant any information necessary for the completion of the determination o f compliance review. If the Air Pollution Control Officer is unable to obtain t he information, the Air Pollution Control Officer may petition the presiding Commissi oner of the California Energy Commission for an order directing the applicant to supply such information. 415.5 Within 180 days of accepting an Application f or Certification as complete, the Air Pollution Control Officer shall make a preliminary decision on: a. whether the proposed power plant meets the requi rements of this rule and all other applicable district regulations; and b. in the event of compliance, what permit conditio ns will be required including the specific Best Available Control Techn ology requirements Comment [LY18]: This

creates almost a circular reference, since you must know if the project will result in a major mod, before knowing what
definition of HPE to use.SACRAMENTO METROPOLITAN AQMD RULES AND REGULATIONS

This is a new rule. The strikeout & underline text reflects differences from Proposed Rule 202 Langua ge.

214-24 September 23, 2010 and a description of required mitigation measures. The preliminary written decision shall be treated a s a preliminary decision under Section 405 of this rule, and shall be finalized by the Air Pollution Control Officer only after being subject to the public noti ce and comment requirements of Sections 405 and 406. The Air Poll ution Control Officer shall not issue a determination of compliance unles s all requirements of this rule are met. 415.6 Within 240 days of the filing date, the Air P ollution Control Officer shall issue and submit to the California Energy Commission a determ ination of compliance or, if such a determination cannot be issued, shall so inf orm the California Energy Commission. A determination of compliance shall co nfer the same rights and privileges as an Authority to Construct only when a nd if the California Energy Commission approves the Application for Certificati on, and the California Energy Commission certificate includes all conditions of t he determination of compliance. 415.7 Any applicant receiving a certificate from th e California Energy Commission pursuant to this section and in compliance with all conditions of the certificate shall be issued a Permit to Operate by the Air Poll ution Control Officer.

## Addendum to Proposed Rule 202 – NEW SOURCE REVIEW a nd Rule 214 – FEDERAL NEW SOURCE REVIEW

The following language shows the changes to the pro posed language released August 23, 2010 for the September Board hearing addressing the comments received from the U.S. Environmental Protection Agency (EPA). New la nguage added for consideration at the October hearing is show as underline. Septembe r proposed language omitted from the October draft is shown in strikeout. Please se e the attached e-mail from EPA dated September 14, 2010. The changes address State Impl ementation Plan approval issues.

LIST OF CHANGES TO RULES Rule 214 – Federal New Source Review

NEW SECTION NUMBER EXISTING

SECTION NUMBER PROPOSED CHANGES

(This table articulates the rationale for differenc es from the Proposed September Public Hearing Rule 202

Language)
101 and
102 Same Revised purpose to clarify rule applies to new major stationary source and modified major stationary sou rces. 101.1 Same Revised language consistent with applica bility section. 103 Same Revised to correct grammar. 110 Same Revised exemption to clarify the limit on exemption applicability. Exemption does not apply if install ation of equipment would result in a major modification, or if the equipment would be a major stationary source in and of itself. Language remains consistent with past prac tice. 112 Same Revised to ensure clarity that Rule 202 do es not apply to a non-major agricultural stationary source or to an a gricultural source that is not making a major modification. 217 Same Revised to remove references to sections o f 40 CFR Section 51.165 which EPA identified as no longer applicable

. 220.1d 220.3a Revised historic actual emissions cal culation procedures consistent 40 CFR Section 51.165(a)(1)(xxxv)(C), wh ich allows for an emissions unit’s historic actual emis sions to be equal to potential to emit in the first two years s ince the date of commencing operation 220.1e 220.3b Removed section that is not applicabl e to new and modified major stationary sources consistent with 40 CFR Sec tion 51.165(a)(1)(xxxv)(C). 220.2 Same Revised language making the historic pot ential emissions for all new emissions units zero, consistent with curre nt practice. Revised to clarify intent of section applies to new emissions unit that is part of a major modification or the em issions unit is a major stationary source in and of itself. 220.3 N/A Revised applicability of requirements to all existing units by moving the requirements to section 220.1. 221.2 Same Revised section heading for clarity.

## NEW

SECTION NUMBER EXISTING

SECTION NUMBER PROPOSED CHANGES

(This table articulates the rationale for differenc es from the Proposed September Public Hearing Rule 202

Language) 221.3a.ii Same Revised “historic potential emission s” calculations used to determine whether historic potential emissions are equal to a units potential to emit or the unit’s historic actual emissions. For major sources and major modifications, limitati on of 5 years, representing the contemporaneous period, has been added where an emissions unit was fully offset for any emission increase, consistent with EPA comments. 223 Same Revised “major modification” definition to clarify which precursors apply for each pollutant. 224 Same Revised “major stationary source” definiti on to clarify sulfur dioxide as a PM10 precursor. Revised second paragraph to clarify the units exemp ted by Rule 201, Sections 111 (vehicles) and 113 (resident ial structures) are not included in the potential to em it calculation. Language previously was unclear on wh at equipment would not be included. The change is con sistent with the current Rule 202 Section 220. 225 Same Revised grammar consistent with intent. 226 Same Reduced applicability of new emissions uni t definition to only those that haven’t begun operation. Previous propo sal expanded it to include units where less than 2 year s had passed since date of commencing operation. 229 Same Revised to remove references to sections o f 40 CFR Section 51.165 which EPA identified as no longer applicable

. 233 Same Revised “potential to emit” definition inc luding fugitive emissions in the potential to emit only if the sour ce belongs to one of the source categories included in Rule 20 7, consistent with 40 CFR Section 51.165(a)(1)(ix). 241 Same Revised section removing reference to the name of the nonattainment area for ozone. The nonattainment ar ea is defined in 40 CFR Section 81.305. 242 N/A Added “Sacramento nonattainment area for PM 10” definition for consistency. The PM10 nonattainment area is de fined in 40 CFR Section 81.305. 243 N/A Revised section removing reference to the n ame of the nonattainment area for PM2.5. The nonattainment ar ea is defined in 40 CFR Section 81.305. 244-245 237-238 Sections renumbered. 302.1 Same Revised section for consistency with Sec tion 414.3 which requires the summation of a stationary source’s pot ential to emit. 302.1b Same Revised grammar. 302.2 Same Revised grammar consistent with intent. 302.6 Same Removed reference to California Health a nd Safety Code, which is not a federal requirement. 302.10 Same Revised section reference.

## NEW

SECTION NUMBER EXISTING

SECTION NUMBER PROPOSED CHANGES

(This table articulates the rationale for differenc es from the Proposed September Public Hearing Rule 202

Language) 303 Same Revised section consistent with intent. 303.1 Same Revised section to remove requirement fo r emission offsets within 15-mile radius to be within Sacramento Valle y Air Basin. This was inadvertently included in the Sept ember proposal and has been changed to be consistent with proposed changes to the other offset ratios. 410.2b Same Removed section reference to temporary source exemption that is no longer applicable and added wording for section reference to major modification. 410.3d Same Removed section reference to avoid refe rences to sections in other rules. 413 Same Revised section introduction for clarity. 413.6 Same Revised and added section references to eliminate circular reference.