BUTTE COUNTY AQMD RULES AND REGULATIONS

Rule 432 April 24, 2014 432-1

Rule 432 Federal New Source Review (FNSR)

(Adopted September 28, 2006; Repealed and Adopted May26, 2011;

Amended April 24, 2014)

RULE 432 CONTENTS

1 PURPOSE

2 APPLICABILITY

3 EFFECTIVE DATE

4 DEFINITIONS

5 REQUIREMENTS

6 EMISSION AND OFFSET CALCULATIONS

7 ADMINISTRATIVE REQUIREMENTS

8 POWER PLANTS
BUTTE 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 pollutants preconstruction 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 other applicable requirements.

1.2 This Rule regulates all federal non-attainment pollutants for major sources

and major modifications for federal purposes.

2 APPLICABILITY

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 (DISTRICT) Rule 400-Permit Requirements. 

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

Construct for a new or modified major source is deemed complete shall apply 

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 emissions 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 stringent of the 

following:
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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 Section 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 hourly 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 BTU 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 fuel 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 

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

4.5.7 The replacement activity shall not cause the process 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 

controlling small or dispersed particulates and other emissions from sources 

such as roadway dust, soot and ash from woodstoves and open burning of 

brush, timber, grasslands, or trash.

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

limitation 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 Contained 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 DISTRICT to adequately evaluate the nature and extent of potential 

emissions of the new or modified emissions unit proposed for use; submitted 

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 emissions unit that have been calculated and certified in accordance with 

an approved DISTRICT Rule 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 practicably enforceable 
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permit conditions specific to an emissions unit which restricts its maximum 

emissions, at or below the emissions associated with the maximum design 

capacity. 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, as 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) pollutant 

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 (NESHAPs); requirements 

within any applicable SIP; any permit requirement established pursuant to 40 

CFR 52.21, 51.160-166; or federal operating permit requirements.

4.15 Fugitive Emissions: Those emissions which could not reasonably pass 

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

4.16 Historic Actual Emissions: Actual emissions of the existing emissions unit 

averaged, in tons per year, over a 24 consecutive month period immediately 

preceding the date of application, unless:

4.16.1 The last 24 months are unrepresentative of normal operations 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 pollutant subject to this Rule. 

4.18 Interpollutant: A pollutant interchanged for offset purposes for a non-
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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 significant net 

emissions increase is one that equals or exceeds any of the following 

amounts: 

4.20.1 Carbon monoxide: 100 tons per year (tpy);

4.20.2 Nitrogen oxides: 40 tpy;

4.20.3 Sulfur dioxide: 40 tpy;

4.20.4 Ozone: 40 tpy of Volatile Organic Compounds (VOCs) or 40 tpy of 

nitrogen 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 has the 

potential to emit, 100 tpy or more of any nonattainment regulated NSR 

pollutant. A major stationary source for nitrogen oxides or VOCs 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 unit 

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 change 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 addition 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.
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4.22.2 A change in ownership.

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

standards 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 actual 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 emissions 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 Pollutant: Any pollutant, as well as any precursors of such 

pollutant, which has been designated non-attainment 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 less than or equal to 

a nominal 2.5 microns. Gaseous emissions which condense to form 

particulate matter at ambient temperatures shall be included.
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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 

common 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 ButteTehama County boundary. 

4.31 Permanent: Actual emissions 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 emissions 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.
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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 

practicably enforceable permit conditions.

4.36 Quantifiable: Ability 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 modification 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 completely 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 is permanently removed from the major 

stationary source, otherwise permanently disabled, or permanently 

barred from operation by a permit that is enforceable as a practical 

matter. If the replaced emissions unit is brought back into operation, 

it shall constitute a new emissions unit.

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, VOCs, NOx, SOx, PM10, PM2.5, and 

lead.

4.43 Significant Increase at a Class 1 Area: Any 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).
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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 adjacent 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 Excluding non-road engines 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 

California 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 reductions 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 

DISTRICT or the state has included on a legallyrequired and publicly-available list of measures that are 

scheduled for adoption by the DISTRICT or the State 

in the future; or (2) is the subject of a public notice 

distributed by the DISTRICT or the State regarding an 

intent to adopt such revision;

4.45.1.3 Any other source or source-category specific regulatory 

or permitting requirement, including, but not limited to, 

RACT, NSPS, NESHAPs, 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 

contained or referenced in 40 CFR Part 52, including 

but not limited to: assumptions used in attainment and 

maintenance demonstrations (including Reasonable 

Further Progress demonstrations and milestone 

demonstrations), including any proposed control 

measure identified as potentially contributing to an 

enforceable near-term emissions reduction 
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commitment; 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 modifications of an existing 

emissions unit(s) which results in a net emissions increase for the emissions 

unit equal to or exceeding the amounts specified below for new or modified 

sources, as applicable:

Pollutant New Stationary 

Source 

(TPY)

Modified 

Source (TPY)

NOx 100 40

Particulate matter (PM-2.5) 100 10

VOCs 100 40

SOx 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 An 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 modification 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 Section shall be identified at the time of 

application and must be surrendered prior to operation of the 
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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, the APCO and EPA may approve 

interpollutant offsets on a case-by-case basis provided that 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. Historic Actual Emissions 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 Proposed 

Emissions minus the Historical Actual Emissions. Emissions increases or 

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

whole.

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

total emissions from 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 whether a 

stationary source is a major stationary source or major modification to a 
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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 potential 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 

offsets are required pursuant to Section 5.2.4 of this Rule, multiply the net 

emissions increase calculated for the project by the appropriate offset ratio 

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

of this Rule.

7 ADMINISTRATIVE REQUIREMENTS: The following 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: The 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 Compliance: The applicant shall provide a certification 

stating that all existing major stationary sources owned or operated by such 

person (or by any entity 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 Class 

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

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

general commercial, residential, industrial, and other growth associated 

with the project, as required by 40 CFR Section 51.307(b)(2) and 40 

CFR Section 51.166(o).

7.3.2 Denial, Adverse Impact To Visibility Of A Class I Area: The APCO 
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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 Rule shall 

apply to such a source or modification as though construction had not yet 

commenced on the source or modification.

8 POWER PLANTS: This Section shall apply to all power plants proposed to be 

constructed in the District and for which a Notice of Intention (NOI) or Application 

for Certification has been accepted by the California Energy Commission (CEC). 

The APCO may apply for reimbursement of all costs incurred, including lost fees, in 

order to comply with the provisions of this Section.

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 

DISTRICT's intent to participate in the NOI proceeding. If the DISTRICT

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 nonadjudicatory 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 DISTRICT

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 

DISTRICT 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 for 

Certification (AFC) for a power plant, the APCO shall conduct a Determination 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 received 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 DISTRICT 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 Sections 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 receiving a certificate from the CEC 

pursuant to this Section 8 and in compliance with all conditions of the 

certificate shall be issued a Permit to Operate by the APCO.