BUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 1 Rule 43 2 Federal New Source Review ( F NSR)
(Adopted September 28, 2 006; Repealed and Adopted May26, 2011 ; Amended April 24, 2014 )

RULE 432 CONTENTS

1 PURPOSE

2 APPLICABILITY

3 EFFECTIVE DATE

4 DEFINITIONS

5 REQUIREMENTS

6 E MISSION AND OFFSET CALCULATIONS

7 ADMINISTRATIVE REQUIREMENTS

8 POWER PLANTSBUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 2 RULE 432

1 PURPOSE

1.1 The purpose of this Rule is to establish nonattainment air pollut ants pre

construction review requirements for new major stationary sources and major

modifications for use of Best Available Control Technology (BACT), offsets

, and analysis of air quality impacts, and to ensure that the operation of such

sources does not interfere with the attainment or maintenance of ambient air quality standards , and complies with all ot her applicable requirements

.

1.2 This R ule regulates all federal non

- attainment pollutants for major sources and major modifications for f ederal purposes.

2 A PPLICABILITY

2.1 This Rule shall apply to all new major stationary sources and major

modifications which are subject to Butte County Air Quality Management District (D ISTRICT) Rule 400

- Permit Requirement s.

2.2 The regu lations in effect at the time that any application for an Authority to

Construct for a new or modified major source is deemed complete shall app ly to that source, except when a new federal requirement not yet incorporated in this Rule applies to the new or modified major source.

2.3 The provisions of Sections 5.1 and 5.2 of this Rule are not applicable to portable, temporary or replacement emiss ions units unless the units are major

sources or, if operating at a major source, installation will result in a major

modification

.

3 EFFECTIVE DATE: This Rule shall become effective on April 24, 2014

.

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

same as defined in Rule 101

- Definitions of these Rules and Regulations.

4.1 Actual Emissions : The actual rate of emissions measured or estimated which most accurately represent the emissions from an emissions unit.

4.2 Actual Emissions Reduction (AER) : A reduction in actual emissions from an emissions unit. Actual emissions reductions shall be real, enforceable, quantifiable, surplus, and permanent.

4.3 Allowable Emissions : The emissions rate of a stationary source calculated using the maximum rated capacity of the emission unit or source, unless the

emission unit or source is limited by federally enforceable conditions which restrict operating rate or hours or both, and the most stringen t of the following:BUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 3 4.3.1 Any applicable standards set forth in 40 Code of Federal Regulations ( CFR ) Parts 60, 61, or 63;

4.3.2 Any applicable current or future emission limitation in the State Implementation Plan (SIP) ; or 4.3.3 A current or future emission rate specified in a federally enforceable permit condition.

4.4 Annual: A period of twelve (12) consecutive months determined on a rolling

basis with a new 12

- month period beginning on the first day of each calendar

month.

4.5 Basic Design Parameters

4.5.1 Except as provided in Se ction 4.5.3 below , for a process unit at a steam electric generating facility, the owner or operator may select as its basic design parameters either maximum hourl y heat input and maximum hourly fuel consumption rate or maximum hourly electric output rate and maximum steam flow rate. When establishing fuel consumption specifications in terms of weight or volume, the minimum fuel quality based on B TU content shall be used for determining the basic design parameter(s) for a coal

- fired electric utility steam generating unit.

4.5.2 Except as provided in Section 4.5.3 , the basic design parameter(s) for any process unit that is not at a steam electric generating facility are maximum rate of fuel or heat input, maximum rate of material input, or maximum rate of product output. Combustion process units will typically use maximum rate of fue l input. For sources having multiple end products and raw materials, the owner or operator should consider the primary product or primary raw material when selecting a basic design parameter.

4.5.3 If the owner or operator believes the basic design parameter(s) in

Sections 4.5.1 and 4.5.2 above is not appropriate for a specific

ind ustry or type of process unit, the owner or operator may propose

to the Air Pollution Control Officer ( APCO ) an alternative basic design parameter(s) for the source’s process unit(s). If the APCO approves of the use of an alternative basic design parameter (s), the

APCO shall issue a permit that is legally enforceable that records such basic design parameter(s) and requires the owner or operator to comply with such parameter(s).

4.5.4 The owner or operator shall use credible information, such as results

of historic maximum capability tests, design information from the manufacturer, or engineering calculations, in establishing the magnitude of the basic design parameter(s) specified in Sections

4.5.1 and 4.5.2

. 4.5.5 If design information is not available for a process unit, then the owner or operator shall determine the process unit’s basic design parameter(s) using the maximum value achieved by the process unit

in the 5

- year period immediately preceding the planned activity.BUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 4 4.5.6 Efficiency of a process unit is not a basic design parameter.

4.5.7 The replacement activity shall not cause the proc ess unit to exceed any emission limitation, or operational limitation that has the effect of constraining emissions, that applies to the process unit and that is legally enforceable.

4.6 Best Available Control Measures (BACM): Most effective measures for

cont rolling small or dispersed particulates and other emissions from sources such as roadway dust, soot and ash from woodstoves and open burning of

b rush, timber, grasslands, or trash.

4.7 Best Available Control Technology (BACT): T he most stringent emissions

li mitation or control technique of the following:

4.7.1 Achieved in practice for such class and category of source; or

4.7.2 Contained in any SIP approved by the United States Environmental Protection Agency ( EPA ) for such class and category of source. A specific limitation or control technique shall not apply if the owner of the proposed emission unit demonstrates to the satisfaction of the APCO that such a limitation or control is not presently achievable;

or 4.7.3 Con tained in an applicable New Source Performance Standard (NSPS) ; or 4.7.4 Any other emission control device or technique, alternative basic equipment, different fuel or process, determined to be technologically feasible and cost

- effective by the APCO for such a class or category of sources.

4.8 Complete Application: An application that contains all information required by the D ISTRICT to adequately evaluate the nature and extent of potential emissions of the new or modified emissions unit proposed for use ; submitt ed in the manner and form prescribed by the APCO.

4.9 Contiguous Property: Two (2) or more parcels of land with a common boundary or separated solely by a public or private roadway or other public right

- of

- way.

4.10 Cost

- Effective: A cost per pound of emission reduction on a pollutant and emissions unit basis which is deemed to be acceptable and feasible based on methodology and criteria specified by the APCO.

4.11 Emission Reduction Credits (ERCs): Reductions of actual emissions from

an emission s unit that have been calculated and certified in accord ance with an approved DISTRICT R ule or an upwind district’s approved rule and banked or transferred in accordance with the requirements of Rule 431

- Emission Reduction Credits and Banking of these Rules and Regulations.

4.12 Emissions Limitation: One (1) or a combination of practicab ly enforceableBUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 5 permit conditions specific to an emissions unit which restricts its maximum emissions, at or below the emissions associated with the maximum design

ca pacity. An emissions limitation must be:

4.12.1 Contained in the latest Authority to Construct and /or contained in or enforceable by the latest Permit to Operate for the emissions unit;

and

4.12.2 Enforceable on a continuous, daily, monthly or rolling 12

- month

basis , a s specified by the permit condition

.

4.13 Emissions Unit: An identifiable operation or piece of process equipment such as an article, machine, or other contrivance which emits, may emit, or results in the emission of any regulated New Source Review ( NSR ) poll utant directly or as fugitive emissions.

4.14 Enforceable: Verifiable and legally binding. Enforceable, for the purposes of federal requirements, means all federally enforceable limitations and conditions enforceable by the administrator, including: NSPS; National Emission Standards for Hazardous Air Pollutants ( NESHAP s ) ; requirements within any appl icable SIP ; any permit requirement established pursuant to 40 CFR 52.21, 51.160

- 166; or federal operating permit requirements.

4.15 Fugitive Emissions : T hose emissions which could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening.

4.16 Historic Actual Emissions: A ctual emissions of the existing emissions un i t averaged, in tons per year, over a 24 consecutive month period i mmediately preceding the date of application, unless:

4.16.1 The last 24 months are unrepresentative of normal oper ations as determined by the APCO , then any 24 consecutive month period of the last five (5) years, which the APCO has determined are representative of normal operations, may be used; or

4.16.2 An emissions unit has been in operation for less than 24 months, a shorter averaging period of at least twelve (12) consecutive months may be used, providing it represents the full operational history of

the emissions unit; or,

4.16.3 An emissions unit has been in operation for less than one (1) year, the baseline shall equal zero (0); or,

4.16.4 At any time during the specified period, if actual emissions exceeded allowable emission levels, then actual emissions shall be

reduced to reflect emission levels that would have occurred if the emissions unit operated in compliance with all applicable limitations

and rules.

4.17 Impact Analysis: An air quality modeling analysis used to estimate the maximum ground level concentration of any pollu tant subject to this Rule.

4.18 Interpollutant: A pollutant interchanged for offset purposes for a non

-BUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 6 attainment pollutant and/or precursor pollutant at a hierarchy and ratio determined by the APCO and EPA.

4.19 Lowest Achievable Emission Rate (LAER): The same as BACT as defined

in this Rule.

4.20 Major Modification: A modification to a major stationary source which results in a significant net emissions increase of a nonattainment pollutant for which the source is classified as a major stationary source. A s ignificant net
emission s increase is one that equals or exceed s any of the following

amounts : 4.20.1 Carbon monoxide: 100 t ons p er y ear (tpy) ; 4.20.2 Nitrogen oxides: 40 tpy;

4.20.3 Sulfur dioxide: 40 tpy;

4.20.4 Ozone: 40 tpy of V olatile O rganic C ompound s (VOCs) or 40 tpy of nitrog en oxides;

4.20.5 PM10: 15 tpy

4.20.6 PM2.5: 10 tpy of direct PM2.5 emissions or 40 tpy of sulfur dioxide emissions or 40 tpy of nitrogen oxide emissions

4.20.7 Lead: 0.6 tpy

4.20.8 A significant increase at a Class 1 area.

4.21 Major Stationary Source: Any stationary source which emits, or ha s the potential to emit, 100 tpy or more of any nonattainment regulated NSR pollutant. A major stationary source for nitrogen oxides or VOC s shall also be considered a major source for ozone. In addition, any physical change, which

would constitute a major stationary source by itself, occurring at a stationary source not otherwise qualifying as a major stationary source, makes the source a major stationary source. Emissions associated with emissions units that are exempt from permit requirements under Rule 401

- Permit Exemptions of these Rules and Regulations shall not be included in determining if a source is a major source unless the unit emits greater than two (2) pounds per day of any pollutant. The fugitive emissions associated with an emissions un it or a stationary source shall not be included in determining whether the source is a major stationary source unless the source is a category source or sources

included in 40 CFR 51.165 (a) (1)(iv)(C)

.

4.22 Modification: Any physical change or operational chan ge to an existing emissions unit, including changing hours of operation or production rate, which would necessitate a change in permit conditions. A modification to a stationary source shall include any modification of its permitted emissions

units or add ition of any new emissions units. A reconstructed stationary source shall be treated as a new stationary source and not as a modification.

A modification also occurs when there is an increase of emissions from an emissions unit which is not subject to a daily emissions limitation. The following shall not be considered a modification:

4.22.1 Routine maintenance or repair.BUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 7 4.22.2 A change in ownership.

4.23 National Ambient Air Quality Standards (NAAQS) : Outdoor air quality

s tandards established by the EPA under authority of the Clean Air Act (42 United States Code ( U.S.C. ) 7401

, et seq.) which identify the maximum acceptable average concentrations of air pollutants during a specific period of

time

.

4.24 Net Air Quality Benefit: A net improvement in air quality resulting from actual emissions reductions impacting the same general area affected by the

new or modified source.

4.25 Net Emissions Increase: As reviewed and approved by the APCO, the sum

of increases and decreases in actua l emissions of a nonattainment pollutant at a stationary source that have occurred five (5) years prior from the date the application for the project was submitted

, and provided:

4.25.1 An increase or decrease in actual emissions has not been relied on in issuing a permit which is in effect when the application for the project was submitted.

4.25.2 An increase in actual emissions is only creditable to the extent the

new level of actual emissions exceeds the old level.

4.25.3 A decrease in actual emission s is only creditable to the extent that:

4.25.3.1 The old level of actual emissions or allowable emissions, whichever is lower , exceeds the new level

of allowable emissions;

4.25.3.2 It is enforceable at the time the actual construction of the project begins;

4.25.3.3 It is surplus; and

4.25.3.4 It has approximately the same quantitative significance for public health and welfare as attributed to the increases from the proposed project.

4.26 Non

- attainment Poll u tant: Any pollutant, as well as any precursors of such pollutant, which has been designated non

- at tainment by EPA as codified in 40

CFR 81.305 for specific portions of Butte County.

4.27 Offset: An emission reduction that compensates for an increase in an affected pollutant from a new or modified stationary source.

4.28 PM10: Particulate matter with aerodynamic diameter less than or equal to a

nominal ten ( 10 ) microns. Gaseous emissions which condense to form particulate matter at ambient temperatures shall be included.

4.29 PM2.5: Particulate matter with an aerodynamic diameter l ess than or equal to

a nominal 2.5 microns. Gaseous emissions which condense to form particulate matter at ambient temperatures shall be included.BUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 8 4.30 PM2.5 Nonattainment Area: The portion of Butte County which lies west of the line described as follows: (Mount Diablo Base and Meridian) Beginning at the intersection of the Butte

- Yuba county line and the township line common to T18N R6E and T19N R6E, west to the township line

comm on to T18N R6E and T19N R6E, then north along the range line common to R5E and R6E, then west along the township line common to T21N and T20N, then north along the range line common to R4E and R5E, then west along the township line common to T24N and T23N to the Butte

Tehama County boundary.

4.31 Permanent: Actual emission s reductions that continue or endure for the duration of any project utilizing the resulting ERCs as offsets.

4.32 Potential to Emit: The maximum annual capacity of an emission s unit to emit a pollutant under its physical and operational design. Any physical or operational limitation on the annual capacity of the unit to emit a pollutant, including pollution control equipment and restrictions in hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or the effect it would have on annual emissions is incorporated into the applicable permit as a legally and practicably enforceable permit condition.

4.33 Precursor : A directly

- emitted pollutant that, when released to the atmosphere, forms, or contributes to the formation of a secondary pollutant for which an ambient air quality standard has been adopted. The following precursor relationships shall be used:

PRECURSOR SECONDARY POLLUTANT

Volatile compounds Photochemical oxidants (ozone) The organic fraction of PM10

and PM2.5

Nitrogen oxides (NOx) Nitrogen dioxide

The nitrate fraction of PM10 and

PM2.5

Photochemical oxidants (ozone)

Sulfur oxides (SOx) Sulfur dioxide

Sulfates

The sulfate fraction of PM10

and PM2.5

4.34 Project: All emissions units associated with the scope of an application submitted in accordance with Rule 400 for a new or modified stationary

source including any emissions units indirectly affected.BUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 9 4.35 Proposed Emissions: The potential to emit for a new or post

- modified emissions unit which will be incorporated into the permit as legally and practica b ly enforceable permit conditions.

4.36 Quantifiable: Ab ility to estimate emission reductions in terms of their amount and characteristics in a manner that is reliable and can be replicated.

4.37 Real: Actually occurring, implemented, and not artificially devised

.

4.38 Reasonably Available Control Technology (RACT): The lowest emission limitation that a particular source is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility.

4.39 Reconstructed Source: Any source undergoing physical m odification where the fixed capital cost of the new components exceeds 50% of the fixed capital cost of a comparable entirely new stationary source. Fixed capital cost means that capital needed to provide all the depreciable components.

4.40 Replacement Unit: A replacement of an emissions unit authorized with a valid Permit to Operate provided all the following criteria are met:

4.40.1 The emissions unit is a reconstructed unit within the meaning of 40

CFR 60.15(b)(1), or the emissions unit completel y takes the place of an existing emissions unit.

4.40.2 The emissions unit is identical to, or functionally equivalent to, the replaced emissions unit.

4.40.3 The replacement does not alter the basic design parameters of the process unit.

4.40.4 The replaced emissions unit i s 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 cons titute a new emissions unit.

4.41 Reduced Sulfur Compounds: The sulfur compounds hydrogen sulfide, carbon disulfide, and carbonyl sulfide.

4.42 Regulated NSR Pollutant: A pollutant for which an Ambient Air Quality Standard has been established by the EPA and the precursors to such pollutants, including but not limited to, VOC s, NOx, SOx, PM10, PM2.5, and

lead.

4.43 Significant Increase at a Class 1 Area: A ny emissions rate or any net emissions increase associated with a major stationary source which would

construct within ten ( 10 ) kilometers of a Class I area and have an impact on such area equal to or greater than one ( 1 ) microgram per cubic meter (24

- hour average)

.BUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 10 4.44 Stationary Source (Facility): Any building, structure, or emissions unit which emits or may emit any regulated NSR pollutant directly or as a fugitive emission, including all pollutant

- emitting activities which are:

4.44.1 Located on one or more contiguous or adj acent properties, and which may be separated by a public right

- of

- way; 4.44.2 Under the same or common ownership, operation, or control, or which are owned or operated by entities which are under common control and belong to the same industrial grouping, either by virtue of falling within the same two

- digit Standard Industrial Classification (SIC) Code or by virtue of being part of a common industrial process, manufacturing process, or connected process involving a common raw material and,

4.44.3 E xcluding non

- road engi nes as defined in CAA Section 216

.

4.45 Surplus: The amount of actual emission reductions that are 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

Califo rnia SIP at the time of use . However, emission reductions required by a State statute that provides that the subject emission reductions shall be considered surplus may be considered surplus for purposes of this Rule if

those reduction s meet all other applicable requirements.

4.45.1 Examples of federal, State, and local laws, and of SIP

- related requirements, include, but are not limited to, the following:

4.45.1.1 The federally

- approved California SIP;

4.45.1.2 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

D ISTRICT or the state has included on a legally

required and publicly

- available list of measures that are

schedu led for adoption by the DISTRICT or the State in the future; or (2) is the subject of a public no tice distributed by the DISTRICT or the State regarding an intent to adopt such revision;

4.45.1.3 Any other source or source

- category specific regulatory or permitting requirement, includin g, but not limited to,
RACT, NSPS

, NESHAP s
, BACM , BACT, and LAER;

and

4.45.1.4 Any regulation or supporting documentation that is required by the federal Clean Air Act but is not

cont ained or referenced in 40 CFR Part 52, including but not limited to: assumptions used in att ainment 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 reductionBUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 11 commit ment; assumptions used in conformity demonstrations; and assumptions used in emissions

inventories.

5 REQUIREMENTS: Any emissions unit which emits a nonattainment pollutant and

is otherwise subject to this Rule

, shall be subject to the following requirements:

5.1 Best Available Control Technology (BACT): An applicant shall apply BACT to any new emissions unit(s) located at a new stationary source, any additions to an existing stationary source

, or any modification s of an existing emissions unit(s) which results in a n et emissions increase for the emissions

unit equal to or exceed ing the amounts specified below for new or modified sources, as applicable :

Pollutant New Stationary

Source (TPY) Modifi ed

Source (TPY)

N Ox 100 40 Particulate matter (PM

- 2.5) 100 1 0

V OCs 100 40

S Ox 100 40

5.2 Offset Requirements

5.2.1 Emission reductions shall be required for emission units to offset annual emission increases of nonattainment pollutants or their

precursors
, associated with a new major stationary source or major modification at a stationary source and may be provided by a reduction in emissions as calculated pursuant to Section 6 of this

Rule

. 5.2.2 Offsets shall be real, permanent, enforceable, surplus at time of use, and quantifiable.

5.2.3 A stationary source's potential to emit shall be calculated pursuant to

Section 6

. 5.2.4 Offsets shall be required under the following conditions:

5.2.4.1 A new major source shall provide offsets for all

emission increases of each nonattainment pollutant for which the source is classified as a major source.

5.2.4.2 A n existing stationary source which undergoes a major modification for a nonattainment pollutant shall provide offsets for the emissions difference between the potential to emit after the modi fication and the

actual emissions before the modification for each nonattainment pollutant.

5.2.5 A source subject to the offset requirements shall be subject to the

Public Notice and Publication Actions of Rule 400.

5.2.6 Offsets required by this S ection shall be ide ntified at the time of application and must be surrendered prior to operation o f theBUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 12 permitted emissions unit.

5.3 Location of Offsets and Offset Ratios

5.3.1 Required offsets can only be provided from a nonattainment area, with the same or higher nonattainment classification, for the same pollutant or precursor of that pollutant.

5.3.2 Use of offsite offsets must result in a net air quality benefit, as determined by the APCO.

5.3.3 Offset ratios and the corresponding distances from the proposed stationary source shall be:

5.3.3.1 on

- site, at a ratio of 1:1;

5.3.3.2 within 20 miles, at a ratio of 1.2:1;

5.3.3.3 from 20 miles to 50 miles, at a ratio of 1.5:1;

5.3.3.4 over 50 miles, at a ratio of 2:1.

5.3.4 The APCO may impose offset ratios greater than the requirements specified in this Rule based upon an air quality impact analysis.

5.4 Interpollutant Offsets: Excluding PM2.5, t he APCO and EPA may approve interpollutant offsets on a case

- by

- case basis provided th at the applicant demonstrates through the use of an air quality impact analysis to the

satisfaction of the APCO and EPA that the emission increases from the new or modified source will result in a net air quality benefit and will not cause or

contribute to a violation of any ambient air quality standard.

6 EMISSION AND OFFSET CALCULATIONS: The following provisions shall be

used to calculate emission increases and decreases from all new , removed and modified emissions units located at a stationary source.

6.1 BACT

- Emissions Increase: The emissions increase for each emissions unit related to the project for the purposes of determining BACT applicability shall be calculated as the Proposed Emissions minus the Historic Actual

Emissions. H istoric A ctual E missions for a new source or emission unit equals zero.

6.2 Offsets

- Emissions Increase or Decrease: The emissions increase or decrease for each emissions unit related to the project for the purposes of determining Offset applicability shall be calculated as the Propo sed

Emissions minus the Historical Actual Emissions . Emission s increases or

decreases shall be calculated for each emission s unit and the project as a

whole.

6.3 Project Emissions: If a project consists of more than one emission s unit, the

total emissions f rom all emissions units shall be summed for each pollutant to determine the emissions increase for the project.

6.4 Fugitive Emissions: The fugitive emissions associated with an emissions unit or a stationary source shall not be included in determining wheth er a stationary source is a major stationary source or major modification to aBUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 13 stationary source unless the source belongs to one of the categories of sources included in 40 CFR 51.165(a) (1) (iv)(C).

6.5 Calculation Periods: The emissions increase or decrease for a project shall be calculated on an annual basis for each pollutant.

6.6 Potential To Emit

- Stationary Sources: The potential to emit of a new or modified stationary source shall be calculated as the sum of the poten tial to emit for all emissions units based on emission limitations established by any current Permit to Operate, Authority to Construct permit, and pending complete application.

6.7 Quantity of Offsets Required: For each nonattainment pollutant for which

offs ets are required pursuant to Section 5.2.4 of this Rule , multiply the net emissions increase calculated for the project by the appropriate offset ra tio

based on the nonattainment pollutant and location as specified in Section 5.3

of this Rule

.

7 ADMINISTRATIVE REQUIREMENTS: The follo wing administrative requirements shall apply to any new major source or major modification regulated by this Rule. Power plants over fifty ( 50 ) megawatts shall be subject to the additional requirements of Section 8 of this Rule

.

7.1 Alternative Siting: T he applicant shall prepare an analysis functionally equivalent to the requirements of Division 13 of the Public Resources Code (California Environmental Quality Act

- CEQA). The DISTRICT will not issue an Authority to Construct unless the APCO has concluded, based on the information included in the Alternative Siting Analysis that the benefits of the proposed source significantly outweigh the environmental and social cost imposed as a result of its location, construction, or modification

.

7.2 Certification of C ompliance: The applicant shall provide a certification stating that all existing major stationary sources owned or operated by such person (or by any en tity controlling, controlled by, or under common control with such person) in California which are subject to emission limitations are in compliance, or on an expeditious schedule for compliance, with all applicable emission limitations and standards.

7.3 Potential Visibility Impacts

7.3.1 Sources Impacting Class I Areas : The applicant of a proposed new major source or major modification that may affect visibility of a Cla ss I area shall provide the A PCO with an analysis of impairment to visibility that would o ccur 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)

. 7.3.2 Denial, Adverse Impact To Visibility Of A Class I Area : The APCOBUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 14 shall deny any Authority to Construct or Permit to Operate for a new major stationary source or major modification if the APCO finds, after consideration of comments and an analysis from the Federal Land Manager, that the emissions from a proposed facility or modification would have an adverse impact on visibility, as defined in 40 CFR Section 52.21(b)(29), of a Class I area pursuant to 40 CFR Section 51.307(b)(2)

.

7.4 Air Quality Impacts Analysis: If the APCO determines that an Air Quality Impacts Analysis (AQIA) is necessary to determine if a project would cause a violation of the NAAQS, then the APCO may require an applicant to use an air quality model to estimate the effects of a new or modified emissions unit. If required by the APCO, the applicant shall provide an AQIA that complies

with the AQIA requirements in Rule 400

.

7.5 Limit Relaxation Provisions: If any source or modification becomes a major stationary source or major modification as defined in Section 4 of this

Rule solely by virtue of a relaxation in any federally enforceable limitation which was established after August 7, 1980, on a capacity of the source or modification to emit a federal nonattainment pollutant or its precursor

, such as a restriction on hours of operation, then the requirements of this R ule shall apply to such a source or modification as though construction had not yet

commence d on the source or modification

.

8 POWER PLANTS: T his S ection shall apply to all power plants proposed t o be

constructed in the District and for which a Notice of Intention (NOI) or Application for Certification has been accepted by the California Energy Co mmission (CEC). The APCO may apply for reimbursement of all costs incurred, including lost fees, in order to comp ly with the provisions of this S ection.

8.1 Intent to Participate and Preliminary Report: Within fourteen (14) days of receipt of an NOI, the APCO shall notify CARB and the CEC of the

D ISTRICT 's intent to participate in the NOI proceeding. If the D ISTRICT chooses to participate in the NOI proceeding, the APCO shall prepare and submit a report to CARB and the CEC prior to the conclusion of the n on

adjudicatory hearing specified in Section 25509.5 of the Public Resources Code. That report shall include, at a minimum:

8.1.1 A preliminary specific definition of BACT for the proposed facility;

and

8.1.2 A preliminary discussion of whether there is a substantial likelihood that the requirements of this Rule and all other D ISTRICT Regulations can be satisfied by the proposed facility; and

8.1.3 A preliminary list of conditions which the proposed facility must meet in order to comply with this Rule or any other applicable

D ISTRICT Regulation. The preliminary determinations contained in the report shall be as specific as possible within the constraints of the information contained in the NOI.BUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 15 8.2 Determination of Compliance Review: Upon receipt of an Application fo r Certification (AFC) for a power plant, the APCO shall conduct a Determina

tion of Compliance review. This determination shall consist of a review identical to that which would be performed if an application for an Authority

to Construct had been receive d for the power plant. If the information contained in the AFC does not meet the requirements of this Rule, the APCO shall, within twenty (20) calendar days of receipt of the AFC, so inform the

CEC , and the AFC shall be considered incomplete and returned to the applicant for re

- submittal.

8.3 Equivalency of Application: The APCO shall consider the AFC to be equivalent to an application for an Authority to Construct during the Determination of Compliance review, and shall apply all provisions of this

Rule which apply to an application for an Authority to Construct.

8.4 Need for Additional Information: The APCO may request from the applicant any information necessary for the completion of the Determination of Compliance review. If the APCO is unable to obtain the information, the APCO may petition the presiding Commissioner for an order directing the applicant to supply such information.

8.5 Preliminary Determination: Within one hundred and eighty (180) days of accepting an AFC as complete, the APCO shall make a preliminary written

decision on:

8.5.1 Whether the proposed power plant meets the requirements of this Rule and all other applicable D ISTRICT Regulations; and

8.5.2 In the event of compliance, what permit conditions will be required, including the specific BACT requirements and a description of required mitigation measures. The preliminary written decision

under Section 8.5 of this Rule shall be treated as a preliminary

decision under Section 5. 2 .2 of Rule 400, and shall be finalized by the APCO only after being subject to the public notice and comment requirements of Section s 4.5 and 5.2.4.2 of Rule 400 . The APCO shall not issue a Determination of Compliance unless all requirements of this Rule are met.

8.6 Determination of Compliance: Within two hundred and forty (240) days of the filing date, the APCO shall issue and submit to the CEC a Determination of Compliance or, if such a determination cannot be issued, shall inform the

CEC.

8.7 Equivalency of Determination of Compliance to Authority to Construct: A Determination of Compliance shall confer the same rights and privileges as an Authority to Construct provided the CEC approves the Application for Certification and the certificate granted by the CEC includes all the conditions of the Determination of Compliance.BUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432

- 16 8.8 Permit to Operate: Any applicant receiv ing a certificate from the CEC

p ursuant to this Section 8 and in compliance with all conditions of the certificate shall be issued a Permit to Operate by the APCO.