### SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

(Adopted June 3, 2011 ) ( Amended December 5, 2014)

RULE 13 25

. FEDERAL PM 2.5 NEW SOURCE REVIEW PROGRAM

(a) Applicability
This rule applies to any new major polluting facility

, major modifications to a major polluting facility

, and any modification t o an existing facility that would constitute a major polluting facility in and of itself ; located in areas federally designated
pursuant to Title 40 of the Code of Federal Regulations (40 CFR) 81.305 as non

attainment for PM 2.5
. With respect to major modifications, this rule applies on a pollutant

- specific basis
to emissions of PM 2.5 and its precursors, for which (1) the source is major, (2) t he modification results in a significant increase, and (3) the modification results in a significant net emissions increase.

(b) Definitions For the purposes of this rule, the definitions in Title 40 CFR 51.165(a)(1), as it
exists on June 3, 2011 shall apply, unless the same term is defined below , then the defined term below shall apply :
(1) BASELINE ACTUAL EMISSIONS means the rate of emissions, in tons per year, of a regulated NSR pollutant, as determined in accordance with the following: (A) For any exi sting electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24

- month period selected by the owner or operator within the 5

- year pe riod immediately preceding when the owner or operator begins actual construction of the project. The Executive Officer shall allow the use of a different time period upon a determination that it is more representative of normal source operation. (i) The avera ge rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns,
and malfunctions

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

compliant emissions that occurred while the source was operating

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above any emission limitation that was legally enforceable during
the consecutive 24

- month period. (iii) For a regulated NSR pollutant, when a project involves multiple emissions units, only one consecutive 24

- month period must be
used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24

- month period can be used for each regulated NSR pollutant. (iv) The average rate shall not be based on any consecutive 24

- month period for which there is inadequate in formation for determining annual emissions, in tons per year, and for adjusting this amount if required by (b)( 1 )(A) (ii) above. (B) For an existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions means the avera ge rate, in tons per year, at which the emissions unit actually emitted the pollutant during any consecutive 24

- month period selected by the owner or operator within the 10

- year period immediately preceding either the date the owner or operator begins actu al construction of the project, or the date a complete permit application is received by the Executive Officer for a permit required under NSR or Prevention of Significant Deterioration (PSD) , whichever is earlier, except that the 10

- year period
shall not include any period earlier than November 15, 1990. (i) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns,
and malfunctions. (ii) The average rate shall be adjusted downward to exclude any non

compliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during
the consecutive 24

- month period. (iii) The average rate shall be adjusted downward to exclude any
emissions that would have exc eeded an emission limitation with which the major polluting facility must currently comply, had such major polluting facility been required to comply with such limitations during the consecutive 24

- month period. (iv) For a regulated NSR pollutant, when a project involves multiple emissions units, only one consecutive 24

- month period must be
used to determine the baseline actual emissions for all the

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emissions units being changed. A different consecutive 24

- month period can be used for each regulated NSR p ollutant. (v) The average rate shall not be based on any consecutive 24

- month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by (b)( 2 )(B)(ii) and (b)( 2 )(B)(iii) ab ove. (C) For a new emissions unit, the baseline actual emissions for purposes of determining the emissions increase that will result from the construction and operation of such unit shall equal zero; and thereafter, for all other

purposes , shall equal the unit ’s potential to emit. (D) For a Plantwide Applicability Limitation (PAL) for a major polluting facility , the baseline actual emissions shall be calculated for existing electric utility steam generating units in accordance with the procedures contained in par agraph ( b )(1)(A), for other existing emissions units in accordance with the procedures contained in paragraph ( b )(1)(B), and for a new emissions unit in accordance with the procedures contained in paragraph ( b )(1)(C).

(2) FACILITY means any source or group of sources or other air contaminant

emitting activities which are located on one or more contiguous properties within the District, in actual physical contact or separated solely by a public roadway or other public right

- of

- way, and are owned or operated by t he same person (or by persons under common control), or an outer continental shelf (OCS) source as determined in 40CFR 55.2. Such above

- described groups, if noncontiguous, but connected only by land carrying a pipeline, shall not be
considered one facilit y. Sources or installations involved in crude oil and gas production in Southern California Coastal or OCS Waters and transport of such crude oil and gas in Southern California Coastal or OCS Waters shall be included in the same facility which is under th e same ownership or use entitlement as the crude oil and gas production facility on

- shore.

(3) MAJOR MODIFICATION means : (A) Any physical change in or change in the method of operation of a m ajor polluting facility that would result in: a significant emissions increase of a regulated NSR pollutant; and a significant net emissions increase of
that pollutant from the major polluting facility.

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(B) A physical change or change in the method of operation shall not
include: (i) Routine maintenance, repair, and repla cement; (ii) Use of an alternative fuel or raw material by reason of an order under section 2 (a) and (b) of the Energy Supply and
E nvironmental Coordination Act of 1974 (or any superseding legislation) or by reason of a natural gas curtailment plan pursuant

to the Federal Power Act; (iii) Use of an alternative fuel by reason of an order or rule under
section 125 of the Energy Supply and Environmental Coordination
Act ; (iv) Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste; (v) Use of an alternative fuel or raw material by a polluting facility
which: (A) The source was capable of accommodating before January 6,
1975 , unless such change would be prohibited under any federally enforceable permit condition which was established
after January 6, 1975 , pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR subpart I or 40
CFR 51.166; or (B) The source is ap proved to use under any permit issued under
40 CFR 51.16 5 ; (vi) An increase in the hours of operation or in the production rate, unless such change would be prohibited under any federally enforceable permit condition which was established after January 6, 1975 pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR subpart I or 40 CFR 51.166 ; (vii) Any change in ownership at a polluting facility

. (C) This definition shall not apply with respect to a particular regulated NSR pollutant when the major pollu ting facility is complying with the requirements under subdivision (e) of this rule for a Plantwide Applicability Limit (PAL) for that pollutant. Instead, the definition in paragraph (e)(2)(H) shall apply.

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(4) MAJOR POLLUTING FACI LITY means , on a pollutant sp ecific basis, any emissions source located in areas federally designated pursuant to 40 CFR
81.305 as non

- attainment for the South Coast Air Basin (SOCAB) which has
actual emissions of

, or the potential to emit

, 100 tons or more per year of
PM 2.5 , or its precursors

. A facility is considered to be a major polluting facility only for the specific pollutant(s) with a potential to emit of 100 tons or

more per year.
(5) MAJOR SOURCE as used in any definition found in 40CFR 51.165(a)(1), means the same as Major Polluting Facility, as defined in this rule.

(6) PLANTWIDE APPLICABILITY LIMITATION means an emissions
limitation as defined in 40 CFR 51.165(f)(2)(v).

(7) PM 2.5 means airborne particulate matter with a nominal aerodynamic diameter
of 2.5 micrometers or less as me asured by the reference test method s in paragraph (h)

. Gaseous emissions which condense to form PM 2.5 at ambient temperatures shall also be included as PM 2.5
. (8) PRECURSORS means, for the purposes of this rule, nitrogen oxides (NOx) and sulfur dioxides (SO 2 )

. (9) PROJECTED ACTUAL EMISSIONS means the maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated NSR pollutant in any one of the 5 years (12

- month period) following the date the unit resumes regular operati on after the project, or in any one of the 10 years following that date, if the project involves increasing the emissions unit’s design capacity or its potential to emit that regulated NSR pollutant and full utilization of the unit would result in a signif icant emissions increase or a significant net emissions increase at the major polluting facility

. In determining the projected annual emissions before beginning actual construction, the owner or operator of the major polluting facility: (A) Shall consider all relevant information, including but not limited to, historical operational data, the company’s own representations, the company’s expected business activity and the company’s highest projection s of business activity , the company's filings with the State or Federal regulatory authorities, and any compliance plans ; and (B) Shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions; and,

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(C) Shall exclude, in calculating any increase in emissions that results from the particular project, that portion of the unit’s emissions following the project that an existing unit could have accommodated during the
consecutive 24

- month period used to establish the baseline actual
emissions and that are also unr elated to the particular project, including any increased utilization due to product demand growth

. (10) REGULATED NSR POLLUTANT means for the purpose of this rule any of the following pollutants: Nitrogen oxides (NOx)

, and sulfur dioxide (SO 2 ) as
PM 2.5 precurs ors , and PM 2.5
. (11) REVIEWING AUTHORITY as used in any definition found in 40CFR 51.165(a)(1), means the same as Executive Officer, as defined in District Rule
102.

(12) SIGNIFICANT means , in reference to a net emissions increase or the potential of a source to emi t any of the following pollutants, a rate of
emissions that would equal or exceed any of the following rates: Nitrogen oxides: 40 tons per year Sulfur dioxide: 40 tons per year
PM 2.5 : 10 tons per year

(13) SOURCE means, any permitted individual unit, piece of equipment, article, machine, process, contrivance, or combination thereof, which may emit or control an air contaminant. This includes any permit unit at any non

RECLAIM facility and any device at a RE CLAIM facility.

(c) Requirements

(1) The Executive Officer shall deny the Permit for a new major polluting facility ;

or major modification to a major polluting facility ; or any modification to an existing facility that would constitute a major polluting facility in and of itself

, unless each of the following requirements is met: (A) Lowest Achievable Emission Rate ( LAER ) is employed for the new or relocated source or for the actual modification to an existing source ; and (B) Emission increases shall be offset at an offset ratio of 1 .1 :1 for PM 2.5 and the ratio required in Regulation XIII or Rule 2005 for NO x and SO 2 as applicable ; and

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(C) Certif ication is provided by the owner/operator that all major sources , as defined in the jurisdiction where the facilities are located, that are owned or operated by such person (or by any entity controlling, controlled by, or under common control with such person) in the State of California are subject to emission limitati ons and are in compliance or on a schedule for compliance with all applicable emission limitations and standards under the Clean Air Act; and (D) An analysis is c onduct ed of alternative sites, sizes, production processes, and environmental control techniques for such proposed source and
demonstrat ion made that the benefits of the proposed project outweigh the environmental and social costs associated with that project.

(2) At such time that a particular source or a source undergoing modification becomes a major po lluting facility or major modification solely by virtue of a relaxation in any enforcement limitation which was established after June 3,
2011 on the capacity of the polluting facility or modification otherwise to emit
PM 2.5 or its precursor s to avoid appl icability of th is rule , such as a restriction on hours of operation, then the requirements of this rule shall apply to the source or modification as though construction had not yet commenced on the
source or modification.

(3) Approval to construct shall not re lieve any owner or operator of the responsibility to comply fully with applicable provision s of the permit and any other requirements under local, State, or Federal law.

(d) Emission Calculations

(1) Except as provided in subdivision (e) of this rule, and consistent with the definition of a major modification, a project is a major modification for a regulated NSR pollutant if it causes two types of emission increases

— a significant emissions increase and a significant net emissions inc rease. The procedure for calculating whether a significant emissions increase will occur at the major polluting facility depends on the type of emissions units being modified, according to paragraphs (d)(2) through (d)(5). The procedure for calculating wh ether a significant net emissions increase will occur at the major polluting facility is contained in the definition of the term Net Emission
Increase.

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(2) Actual

- to

- projected

- actual applicability tests for projects that only involve existing emissions unit s. A significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the difference between the projected actual emissions and the baseline actual emissions [as defined in
sub

- paragr a ph (b)( 1 )(A) and (b)( 1 )( B ) , as applicable ] for each existing emissions unit, equals or exceeds the significant amount for that pollutant.

(3) Actual

- to

- potential tests for projects that only involve construction of a new emissions unit(s). A significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the difference between the potential to emi t from each new emissions unit following completion of the project and the baseline actual emissions (as defined in sub

- paragraph (b)(1)(C)) of these units before the project eq uals or exceeds the significant amount for that pollutant

. (4) Hybrid tests for projects that involve multiple types of emissions units. A significant emissions increase of a regulated NSR pollutant is projected to
occur if the sum of the emissions increases for each emissions unit, using the method specified in paragraphs (d)(2) and (d)(3) as applicable with respect to
each emissions units for each type of emissions unit equals or exceeds the significant amount for that pollutant.

(5) In lieu of using the method set out in paragraph (d)(2)

, the owner or operator of a major polluting facility may elect to use the emissions unit’s potential to emit, in tons per year to determine if a significant emissions increase is projected to occur

. For this purpose, the unit’ s potential to emit shall include fugitive emissions (to the extent quantifiable).

(e) Plantwide Applicability Limitation (PAL)

(1) Applicability (A) The Executive Officer may approve the use of an actuals PAL for any existing major polluting facility if the PAL meets the requirements in paragraphs (e)(1) through (15) of this rule. The term “PAL” shall mean “actuals PAL” throughout subdivision (e) of this rule

. (B) Any physical change in or change in the method of operation of a major polluting facility t hat maintains its total source

- wide emissions below the PAL level, meets the requirements in paragraphs ( e )(1) through (e) (15) of this rule , and complies with the PAL permit:

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(i) Is not a major modification for the PAL pollutant; (ii) Is not subject to the provisio ns in subdivision (c) of this rule; and (iii) Is not subject to the provisions in paragraph (c)(2) of this rule. (C) Except as provided under clause ( e )(1)( B )( iii ), a major polluting facility shall continue to comply with all applicable Federal or State requiremen ts, emission limitations, and work practice requirements that were established prior to the effective date of the PAL.

(2) Definitions. The following definitions in sub paragraphs ( e )(2)( A ) through ( K ) apply for the purpose s of subdivision (e) of this rule

. When a term is not
defined below , it shall have the meaning given in paragraph ( b )(1) of this rule
or in the Clean Air Act. (A) ACTUALS PAL FOR A MAJOR POLLUTING FACILITY means a PAL based on the baseline actual emissions

, of all emissions units at the

source, that emit or have the potential to emit the PAL pollutant. (B) ALLOWABLE EMISSIONS means “allowable emissions” as defined in
40CFR 51.165 (a)(1)(xi), except as this definition is modified according

to clauses ( e )(2)( B ( i ) and ( ii)

. (i) The allowable emissions for any emissions unit shall be calculated considering any emission limitations that are enforceable as a practical matter on the emissions unit's potential to emit. (ii) An emissions unit's potential to emit shall be determined using the
definition in 40CFR 51.165 (a)(1)(iii) , except that the words “or enforceable as a practical matter” should be added after “federally
enforceable.” (C) SMALL EMISSIONS UNIT means an emissions unit that emits or has the potential to emit the PAL pollutant in an amount less than the signi ficant level for that PAL pollutant, as defined in paragraph ( b )( 12 )
of this rule or in the Clean Air Act, whichever is lower. (D) MAJOR EMISSIONS UNIT means: (i) Any emissions unit that emits or has the potential to emit 100 tons per year or more of the PAL pollutant in an attainment area; or (ii) Any emissions unit that emits or has the potential to emit the PAL pollutant in an amount that is equal to or greater than the major source threshold for the PAL pollutant as defined by the Clean Air
Act for non

- attainme nt areas.

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(E) PLANTWIDE APPLICABIL ITY LIMITATION (PAL) means an emission limitation expressed in tons per year, for a pollutant at a major polluting facility , that is enforceable as a practical matter and established

source

- wide in accordance with paragraph s ( e )( 1 ) through (e)(15) of this
rule

. (F) PAL EFFECTIVE DATE generally means the date of issuance of the PAL permit. T he PAL effective date for an increased PAL is the date any emissions unit which is part of the PAL major modification becomes operational and begins to emit the PAL pollutant. (G) PAL EFFECTIVE PERIOD means the period beginning with the PAL effective date and ending 10 years later. (H) PAL MAJOR MODIFICATION means any physical change in or change in the method of operation of the PAL source that causes it to emit the PAL pollutant at a level equal to or greater than the PAL. (I) PAL PERMIT means the major NSR permit, the minor NSR permit, or
the Title V permit issued by the Executive Officer that establishes a PAL for a major polluting facility

. (J) PAL POLLUTAN T means the pollutant for which a PAL is established at a major polluting facility

. (K) SIGNIFICANT EMISSION S UNIT means an emissions unit that emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the significant lev el (as defined in paragraph ( b )( 12 ) of
this rule or in the Clean Air Act, whichever is lower) for that PAL pollutant, but less than the amount that would qualify the unit as a major
emissions unit as defined in sub paragraph ( e )(2)( D ) of this rule

.
(3) Permit a pplication requirements As part of a permit application requesting a PAL, the owner or operator of a major polluting facility shall submit the following information to the
Executive Officer for approval: (A) A list of all emissions units at the source designat ed as small, significant or major based on their potential to emit. In addition, the owner or operator of the source shall indicate which, if any, Federal or State applicable requirements, emission limitations or work practices apply to
each unit.

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(B) Calculations of the baseline actual emissions (with supporting documentation). Baseline actual emissions are to include emissions associated not only with operation of the unit, but also emissions associated with startup, shutdown and malfunction. (C) The cal culation procedures that the major polluting facility owner or operator proposes to use to convert the monitoring system data to monthly emissions and annual emissions based on a 12

- month rolling total for each month as required by sub paragraph ( e )(13)( A ) of this rule

. (4) General requirements for establishing PALs (A) The Executive Officer may establish a PAL at a major polluting facility

, provided that at a minimum, the requirements in sub

- paragraph ( e )(4)( A )
of this rule are met. (i) The PAL shall impose an annual emission limitation

, in tons per

year , that is enforceable as a practical matter, for the entire major polluting facility

. For each month during the PAL effective period after the first 12 months of establishing a PAL, the major polluting facility owner o r operator shall show that the sum of the monthly emissions from each emissions unit under the PAL for the previous 12 consecutive months is less than the PAL (a 12

- month average, rolled monthly). For each month during the first 11 months from
the PAL eff ective date, the major polluting facility owner or operator shall show that the sum of the preceding monthly
emissions from the PAL effective date for each emissions unit
under the PAL is less than the PAL. (ii) The PAL shall be established in a PAL permit that meets the public participation requirements in paragraph ( e )(5) of this rule

. (iii) The PAL permit shall contain all the requirements of paragraph ( e )(7) of this rule

. (iv) The PAL shall include fugitive emissions, to the extent quantifiable, from all emissions unit s that emit or have the potential to emit the PAL pollutant at the major polluting facility

. (v) Each PAL shall regulate emissions of only one pollutant. (vi) Each PAL shall have a PAL effective period of 10 years.

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(vii) The owner or operator of the major polluting facil ity with a PAL shall comply with the monitoring, recordkeeping, and reporting requirements provided in paragraphs ( e )(12) through (14) of this
rule for each emissions unit under the PAL through the PAL effective period. (B) At no time (during or after the PAL effective period) are emissions reductions of a PAL pollutant, which occur during the PAL effective period, creditable as decreases for purposes of generating offsets unless the level of the PAL is reduced by the amount of such emissions
reductions and such reductions would be creditable in the absence of the
PAL.

(5) Public participation requirement for PALs Prior to the issuance of a new, renewed or increased PAL, the Executive Officer shall comply with the public participa tion requirements of District Rule 212(g). The Executive Officer must address all material comments before taking final action on the permit.

(6) Setting the 10

- year actuals PAL level (A) Except as provided in paragraph ( e )(6)( B ) of this rule , the actuals PAL level for a major polluting facility shall be established as the sum of the baseline actual emissions of the PAL pollutant for each emissions unit at the source; plus an amount equal to the applicable significant level for the PAL pollutant under para graph ( b )( 12 ) of this rule or under the Act,
whichever is lower. When establishing the actuals PAL level, for a PAL pollutant, only one consecutive 24

- month period must be used to determine the baseline actual emissions for all existing emissions units. However, a different consecutive 24

- month period may be used for each different PAL pollutant. Emissions associated with units that were permanently shut down after this 24

- month period must be subtracted
from the PAL level. The Executive Officer shall s pecify a reduced PAL level(s) (in tons/yr) in the PAL permit to become effective on the future compliance date(s) of any applicable Federal or State regulatory requirement(s) that the Executive Officer is aware of prior to issuance of the PAL permit.

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(B) For newly constructed units (which do not include modifications to existing units) on which actual construction began after the 24

- month period, in lieu of adding the baseline actual emissions as specified in
sub

- paragraph (f)(6)( A ) of this rule , the emissions must be added to the PAL level in an amount equal to the potential to emit of the units.

(7) Contents of the PAL permit The PAL permit shall contain, at a minimum, the following information. (A) The PAL pollutant and the applicable source

- wide emission limitation in
tons per year. (B) The PAL permit effective date and the expiration date of the PAL (PAL effective period). (C) Specification in the PAL permit that if a major polluting facility owner or operator applies to renew a PAL in accordance with paragraph ( e )(10)
of this rule before the end of the PAL effective period, then the PAL shall not expire at the end of the PAL effective period. It shall remain in effect until a revised PAL permit is issued by the Executive Officer

. (D) A requirement that emission calculations f or compliance purposes include emissions from startups, shutdowns and malfunctions. (E) A requirement that, once the PAL expires, the major polluting facility is subject to the requirements of paragraph ( e )(9) of this rule

. (F) The calculation procedures that the major polluting facility owner or operator shall use to convert the monitoring system data to monthly
emissions and annual emissions based on a 12

- month rolling total for each month as required by sub

- paragraph ( e )(13)( A ) of this rule

. (G) A requirement that t he major polluting facility owner or operator monitor all emissions units in accordance with the provisions under paragraph ( e )(12) of this rule

. (H) A requirement to retain the records required under paragraph ( e )(13) of
this rule on site. Such records may b e retained in an electronic format. (I) A requirement to submit the reports required under paragraph ( e )(14) of
this rule by the required deadlines. (J) Any other requirements that the Executive Officer deems necessary to implement and enforce the PAL.

(8) PAL effecti ve period and reopening of the PAL permit

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The PAL shall include the following information : (A) PAL effective period

. The Executive Officer shall specify a PAL effective period of 10 years. (B) Reopening of the PAL permit

. (i) During the PAL effective period, the plan shall require the
Executive Officer to reopen the PAL permit to: (A) Correct typographical/calculation errors made in setting the
PAL or reflect a more accurate determination of emissions
used to establish the PAL. (B) Red uce the PAL if the owner or operator of the major polluting facility creates creditable emissions reductions for
use as offsets. (C) Revise the PAL to reflect an increase in the PAL as provided under paragraph ( e )(11) of this rule

. (ii) The Executive Officer may re open the PAL permit for the following: (A) Reduce the PAL to reflect newly applicable Federal requirements (for example, N ew S ource P erformance
S tandard ) with compliance dates after the PAL effective date. (B) Reduce the PAL consistent with any other requirement, that is enforceable as a practical matter, and that the State may impose on the major polluting facility under the District
rules

. (C) Reduce the PAL if the Executive Officer determines that a reduction is necessary to avoid causing or contributing to a NAAQS or PSD increment violation, or to an adverse impact on an air quality related value that has been identified for a Federal Class I area by a Federal Land Manager and for which information is available to the general public. (iii) Except for the permit reopening in paragraph ( e )(8)( B )( i )( A ) of
this rule for the correction of typographical/calculation errors that do not increase the PAL level, all other re

- openings shall be carried out in accordance with the public participation requirements of paragraph ( e )(5) of this rule

. (9) Expiration of a PAL

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Any PAL which is not renewed in accordance with the procedures in paragraph ( e )(10) of this rule shall expire at the end of the PAL effective period, and the requirements in paragraph ( e )(9) shall apply. (A) Each emissions unit (or each group of emissions units) that existed under the PAL shall comply with an allowable emission limitation under a revised permit established according to the following procedures : (i) Within the time frame specified for PAL renewals in sub

paragraph ( e )(10)( B ), the major polluting facility shall submit a proposed allowable emission limitation for each emissions unit (or each group of emissions units, if such a distribution is more appropriate as decided by the Executive Officer ) by di stributing the PAL allowable emissions for the major polluting facility among each of the emissions units that existed under the PAL. If the PAL had not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required under paragraph ( e )(10)( E ) of this rule , such distribution shall be made as if the PAL had been adjusted. (ii) The Executive Officer shall decide whether and how the PAL allowable emissions will be distributed and issue a revised permit incorporati ng allowable limits for each emissions unit, or each group of emissions units, as the Executive Officer determines is appropriate. (B) Each emissions unit shall comply with the allowable emission limitation
on a 12

- month rolling basis. The Executive Officer ma y approve the use of monitoring systems (source testing, emission factors, etc.) other than
CEMS ( Continuous emissions monitoring system) , CERMS ( Continuous emissions rate monitoring system) , PEMS ( Predictive emissions monitoring system) or CPMS ( Continuous parameter monitoring system) to demonstrate compliance with the allowable
emission limitation. (C) Until the Executive Officer issues the revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as req uired under clause ( e )(9)( A )( i ) of this rule , the source shall continue to comply with a source

- wide, multi

- unit emissions cap equivalent to the level of the PAL emission limitation.

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(D) Any physical change or change in the method of operation at the major pol luting facility will be subject to the nonattainment major NSR requirements if such change meets the definition of major modification in paragraph ( b )( 3 ) of this rule

. (E) The major polluting facility owner or operator shall continue to comply with any State o r Federal applicable requirements (BACT, RACT, NSPS, etc.) that may have applied either during the PAL effective period or prior to the PAL effective period except for those emission limitations that had been established pursuant to 40CFR 51.165 (a)(5)(ii) , but were eliminated by the PAL in accordance with the provisions in paragraph ( e )(1)( B )( iii ) of this rule

. (10) Renewal of a PAL (A) The Executive Officer shall follow the procedures specified in paragraph ( e )(5) of this rule in approving any request to renew a PAL for a major polluting facility , and shall provide both the proposed PAL level and a written rationale for the proposed PAL level to the public for review and

comment. During such public review, any person may propos e a PAL level for the source for consideration by the Executive Officer

. (B) Application deadline. The plan shall require that a major polluting facility owner or operator shall submit a timely application to the
Executive Officer to request renewal of a PAL. A timely application is one that is submitted at least 6 months prior to, but not earlier than 18 months from, the date of permit expiration. If the owner or operator of a major polluting facility submits a complete application to renew the
PAL within th is time period, then the PAL shall continue to be effective until the revised permit with the renewed PAL is issued. (C) Application requirements

. The application to renew a PAL permit shall contain the information required in paragraphs ( e )(10)( C )( i ) through ( iv )
of this rule

. (i) The information required in paragraphs ( e) (3)( A ) through ( C ) of
this rule

. (ii) A proposed PAL level. (iii) The sum of the potential to emit of all emissions units under the PAL (with supporting documentation).

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(iv) Any other information the owner or o perator wishes the Executive
Officer to consider in determining the appropriate level for renewing the PAL. (D) PAL adjustment

. In determining whether and how to adjust the PAL,
the Executive Officer shall consider the options outlined in paragraphs ( e )(10)( D )( i ) and ( ii ) of this rule

. However, in no case may any such adjustment fail to comply with paragraph ( e )(10)( D )( iii ) of this rule

. (i) If the emissions level calculated in accordance with paragraph ( e )(6) of this rule is equal to or greater than 80 percent o f the PAL level, the Executive Officer may renew the PAL at the same level without considering the factors set forth in paragraph ( e )(10)( D )( ii )
of this rule ; or (ii) The Executive Officer may set the PAL at a level that it determines to be more representative of the source's baseline actual emissions, or that it determines to be appropriate considering air quality needs, advances in control technology, anticipated economic growth in the area, desire to reward or encourage the source's voluntary emissions reduct ions, or other factors as specifically identified by the Executive Officer in its written rationale. (iii) Notwithstanding ( e )(10)( D )( i ) and ( ii ) of this rule

, (A) If the potential to emit of the major polluting facility is less than the PAL, the Executive Officer s hall adjust the PAL to a level no greater than the potential to emit of the source; and (B) The Executive Officer shall not approve a renewed PAL level higher than the current PAL, unless the major polluting facility has complied with the provisions of paragra ph ( e )(11)
of this rule

. (E) If the compliance date for a State or Federal requirement that applies to the PAL source occurs during the PAL effective period, and if the
Executive Officer has not already adjusted for such requirement, the PAL shall be adjusted at the time of PAL permit renewal or title V permit renewal, whichever occurs first.

(11) Increasing a PAL during the PAL effective period

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(A) The plan shall require that the Executive Officer may increase a PAL emission limitation only if the major polluting faci lity complies with the provisions in clause ( e )(11)(A) (i) through (e)(11)(A)(iv) of this rule

. (i) The owner or operator of the major polluting facility shall submit a complete application to request an increase in the PAL limit for a PAL major modification. Such application shall identify the emissions unit(s) contributing to the increase in emissions so as to cause the major polluting facility’s emissions to equal or exceed its
PAL. (ii) As part of this application, the major polluting facility owner or operator shall demonstrate that the sum of the baseline actual emissions of the small emissions units, plus the sum of the baseline actual emissions of the significant and major emissions units assuming application of BACT equivalent controls, plus the sum of
the a llowable emissions of the new or modified emissions unit(s)
exceeds the PAL. The level of control that would result from BACT equivalent controls on each significant or major emissions unit shall be determined by conducting a new BACT analysis at
the time the application is submitted, unless the emissions unit is currently required to comply with a BACT or LAER requirement that was established within the preceding 10 years. In such a case, the assumed control level for that emissions unit shall be equal t o the level of BACT or LAER with which that emissions unit must currently comply. (iii) The owner or operator obtains a major NSR permit for all emissions unit(s) identified in paragraph ( e )(11) (A) (i) of this rule

, regardless of the magnitude of the emissions in crease resulting
from them. These emissions unit(s) shall comply with any emissions requirements resulting from the nonattainment major NSR program process (for example, LAER), even though they have also become subject to the PAL or continue to be subject to
the PAL. (iv) The PAL permit shall require that the increased PAL level shall be effective on the day any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL pollutant.

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(B) The Executive Officer shall calculate the new PAL as the sum of the allowable emissions for each modified or new emissions unit, plus the sum of the baseline actual emissions of the significant and major emissions units (assuming application of BACT equivalent controls as
dete rmined in accordance with paragraph ( e )(11)( A )( ii )), plus the sum of
the baseline actual emissions of the small emissions units. (C) The PAL permit shall be revised to reflect the increased PAL level pursuant to the public notice requirements of paragraph ( e )( 5) of this
rule

. (12) Monitoring requirements for PALs (A) General requirements. (i) Each PAL permit must contain enforceable requirements for the monitoring system that accurately determines plantwide emissions of the PAL pollutant in terms of mass per unit of time. Any monitoring system authorized for use in the PAL permit must be based on sound science and meet generally acceptable scientific procedures for data quality and manipulation. Additionally, the information generated by such system must meet minimum legal requirements for admissibility in a judicial proceeding to enforce the PAL permit. (ii) The PAL monitoring system must employ one or more of the four general monitoring approaches meeting the minimum requirements set forth in paragraphs ( e )(12)( B )( i ) through ( iv ) of this rule and must be approved by the Executive Officer

. (iii) Notwithstanding paragraph ( e )(12)( A )( ii ) of this rule

, a major polluting facility may also employ an alternative monitoring approach that meets paragraph ( e )(12)( A )( i ) of this rule if approved by the Executive Officer

. (iv) Failure to use a monitoring system that meets the requirements of
this rule renders the PAL invalid. (B) Minimum Performance Requirements for Approved Monitoring Approaches. The following are acceptable general monitoring approaches when conducted in accordance with the minimum requirements in paragraphs ( e )(12)( C ) through ( I ) of this rule : (i) Mass balance calculations for activities using coatings or solvents;

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(ii) CEMS; (iii) CPMS or PEMS; and (iv) Emission Factors. (C) Mass Balance Calculations. An owner or operator using mass balance calculations to monitor PAL pollutant emissions from activities using coating or solvents shall meet the following requirements: (i) Provide a demonstrated means of validating the published content of the PAL pollutant that is contained in or created by all materials used in or at the emissions unit; (ii) Assume that the emissions unit emits all of the PAL pollutant that is contained in or created by any raw material or fuel used in or at the emissions unit, if it cannot otherwis e be accounted for in the process; and (iii) Where the vendor of a material or fuel, which is used in or at the emissions unit, publishes a range of pollutant content from such material, the owner or operator must use the highest value of the range to calculate the PAL pollutant emissions unless the
Executive Officer determines there is site

- specific data or a site

specific monitoring program to support another content within the

range. (D) CEMS. An owner or operator using CEMS to monitor PAL pollutant
emissions shal l meet the following requirements: (i) CEMS must comply with applicable Performance Specifications found in 40 CFR part 60, appendix B; and (ii) CEMS must sample, analyze and record data at least every 15 minutes while the emissions unit is operating. (E) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions shall meet the following requirements: (i) The CPMS or the PEMS must be based on current site

- specific data demonstrating a correlation between the monitored parameter(s) and the PAL pollutant emissions across the range of operation of the emissions unit; and (ii) Each CPMS or PEMS must sample, analyze, and record data at least every 15 minutes, or at another less frequent interval approved by the Executive Officer , while the emissions unit is operating.

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(F) Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions shall meet the following requirements: (i) All emission factors shall be adjusted, if appropriate, to account for the degree of uncertainty or limit ations in the factors' development; (ii) The emissions unit shall operate within the designated range of use for the emission factor, if applicable; and (iii) If technically practicable, the owner or operator of a significant
emissions unit that relies on an emission factor to calculate PAL pollutant emissions shall conduct validation testing to determine a
site

- specific emission factor within 6 months of PAL pe rmit issuance, unless the Executive Officer determines that testing is not required. (G) A source owner or operator must record and report maximum potential emissions without considering enforceable emission limitations or operational restrictions for an emiss ions unit during any period of time that there is no monitoring data, unless another method for determining emissions during such periods is specified in the PAL permit. (H) Notwithstanding the requirements in paragraphs ( e )(12)( C ) through ( G )
of this rule , wh ere an owner or operator of an emissions unit cannot demonstrate a correlation between the monitored parameter(s) and the PAL pollutant emissions rate at all operating points of the emissions unit, the Executive Officer shall, at the time of permit issuanc e: (i) Establish default value(s) for determining compliance with the PAL based on the highest potential emissions reasonably estimated at such operating point(s); or (ii) Determine that operation of the emissions unit during operating
conditions when there is no c orrelation between monitored parameter(s) and the PAL pollutant emissions is a violation of the
PAL. (I) Re

- validation. All data used to establish the PAL pollutant must be re

validated through performance testing or other scientifically valid means approved b y the Executive Officer . Such testing must occur at least once every 5 years after issuance of the PAL.

(13) Recordkeeping requirements

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(A) The PAL permit shall require an owner or operator to retain a copy of all records necessary to determine compliance with any requirement of paragraph ( e ) of this rule and of the PAL, including a determination of
each emissions unit's 12

- month rolling total emissions, for 5 years from
the date of such record. (B) The PAL permit shall require an owner or operator to retain a copy of the following records for the duration of the PAL effective period plus 5

years: (i) A copy of the PAL permit application and any applications for revisions to the PAL; and (ii) Each annual certification of compliance pursuant to title V and the
data relied on in c ertifying the compliance.

(14) Reporting and notification requirements

. The owner or operator shall submit
semi

- annual monitoring reports and prompt deviation reports to the Executive
Officer in accordance with the applicable title V operating permit program. The reports shall meet the requirements in paragraphs ( e )(14)( A ) through ( C ). (A) Semi

- Annual Report. The semi

- annual report shall be submitted to the
Executive Officer within 30 days of the end of each reporting period. This report shall contain the information required in paragraphs ( e )(14)( A )( i ) through ( vii ) of this rule

. (i) The identification of owner and operator and the permit number. (ii) Total annual emissions (tons/year) based on a 12

- month rolling total for each month in the reporting period recorde d pursuant to paragraph ( e )(13)( A ) of this rule

. (iii) All data relied upon, including, but not limited to, any Quality Assurance or Quality Control data, in calculating the monthly and annual PAL pollutant emissions. (iv) A list of any emissions units modified or ad ded to the major polluting facility during the preceding 6

- month period. (v) The number, duration, and cause of any deviations or monitoring malfunctions (other than the time associated with zero and span calibration checks), and any corrective action taken. (vi) A notification of a shutdown of any monitoring system, whether the shutdown was permanent or temporary, the reason for the shutdown, the anticipated date that the monitoring system will be

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fully operational or replaced with another monitoring system, and
wh ether the emissions unit monitored by the monitoring system continued to operate, and the calculation of the emissions of the pollutant or the number determined by method included in the permit, as provided by paragraph ( e )(12)( G ) of this rule

. (vii) A signed st atement by the responsible official (as defined by the applicable title V operating permit program) certifying the truth, accuracy, and completeness of the information provided in the
report. (B) Deviation report. The major polluting facility owner or operator shall promptly submit reports of any deviations or exceedance of the PAL requirements, including periods where no monitoring is available. A report submitted pursuant to 40CFR 70.6(a)(3)(iii)(B) shall satisfy this reporting requirement. The deviation reports shall be submitted within the time limits prescribed by District Rule 3004(g)(4)

. The reports shall contain the following information: (i) The identification of owner and operator and the permit number; (ii) The PAL requirement that experien ced the deviation or that was exceeded; (iii) Emissions resulting from the deviation or the exceedance; and (iv) A signed statement by the responsible official (as defined by the applicable title V operating permit program) certifying the truth, accuracy, and complet eness of the information provided in the
report. (C) Re

- validation results. The owner or operator shall submit to the
Executive Officer the results of any re

- validation test or method within 3 months after completion of such test or method.

(15) Transition requirem ents (A) The Executive Officer may not issue a PAL that does not comply with the requirements in paragraphs ( e )(1) through (15) of this rule after the
EPA has approved this rule as part of the California State Implementation Plan

.
(f) Two Year Limit on Facility Exemption

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Any facility, with accumulated emission increases in excess of 100 tons per year of
PM 2.5 due to permit actions within any two

- year period after June 3, 2011 , shall offset the total emission increases during such period to zero.

(g) Recordkeeping Req uirements

(1) If an owner or operator uses the calculation methods specified in paragraphs (d)(2) or (d)(4) of this rule to calculate projected actual emissions, and where there is a reasonable possibility, within the meaning of paragraph (g)(6) of this rule, that a project that is not a part of a major modification may result in a significant emissions increase of such pollutant, then before beginning actual construction of the project, the owner or operator shall document and
maintain a record of the followin g information: (A) A description of the project; (B) Identification of the emissions unit(s) whose emissions of a regulated NSR pollutant could be affected by the project; and (C) A description of the applicability test used to determine that the project
is not a m ajor modification for any regulated NSR pollutant, including the baseline actual emissions, the projected actual emissions, the amount of emissions excluded under paragraph (b)( 9 )( C ) of this rule and an explanation for why such amount was excluded, and any netting calculations, if applicable.

(2) If the emissions unit is an existing electric utility steam generating unit, before beginning actual construction, the owner or operator shall provide a copy of the information set out in paragraph (g)(1) to the Execu tive Officer. Nothing in this paragraph shall be construed to require the owner or operator of such a unit to obtain any determination from the Executive Officer before beginning
actual construction.

(3) The owner or operator shall monitor the emissions of an y regulated NSR pollutant that could increase as a result of the project and that is emitted by any emissions units identified in paragraph (g)(1)(B); and calculate and maintain a record of the annual emissions, in tons per year on a calendar year basis, f or a period of 5 years following resumption of regular operations after the change, or for a period of 10 years following resumption of regular operations after the change if the project increases the design capacity or potential to emit of that regulated NSR pollutant at such emissions unit.

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(4) If the unit is an existing electric utility steam generating unit, the owner or operator shall submit a report to the Executive Officer within 60 days after the end of each year during which records must be generated under paragraph (g)(3) setting out the unit's annual emissions.

(5) If the unit is an existing unit other than an electric utility steam generating unit, the owner or operator shall submit a report to the Executive Officer if the annual emissions, in tons per year, from the project identified in paragraph (g)(1), exceed the baseline actual emissions (as documented and maintained pursuant to paragraph (g)(1)(C), by a significant amount (as defined in paragraph (b)( 12 ) of this rule) for that regulated NSR pollut ant, and if such emissions differ from the preconstruction projection as documented and maintained pursuant to paragraph (g)(1)(C). Such report shall be submitted to the Executive Officer within 60 days after the end of such year. The report
shall contain the following: (A) The name, address and telephone number of the major polluting facility; (B) The annual emissions as calculated pursuant to paragraph (g)(3); and (C) Any other information that the owner or operator wishes to include in the report (e.g., an explan ation as to why the emissions differ from the preconstruction projection).

(6) A “reasonable possibility” occurs when the owner or operator calculates the project to result in either: (A) A projected actual emissions increase of at least 50 percent of the

amount that is a “significant emissions increase,” as defined under paragraph (b)( 12 ) of this rule (without reference to the amount that is a significant net emissions increase), for the regulated NSR pollutant; or (B) A projected actual emissions increase that, ad ded to the amount of emissions excluded under paragraph (b)(9)(C), sums to at least 50 percent of the amount that is a “significant emissions increase,” as defined under paragraph (b)(12) of this rule (without reference to the amount that is a significant net emissions increase), for the regulated NSR pollutant. For a project for which a reasonable possibility occurs only within the meaning of paragraph (g)(6)(B) of this rule, and not also within the meaning of paragraph (g)(6)(A) of this rule, then provis ions (g)(2) through (5) do not apply to the project.

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(h) Test Methods For the purpose of this rule only, t est ing for point sources of PM 2.5 sh all be in
accordance with U.S. EPA Test Methods 201A and 202.

(i) Exclusions The provisions of Rule 1304

– Exemptions

, Rule 1309.1

– Priority Reserve, and
Rule 1315

– Federal New Source Review Tracking System do not apply for the purposes of this rule.

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