SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

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

RULE 1325. FEDERAL PM2.5 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 to 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 nonattainment for PM2.5.

With respect to major modifications, this rule applies on a pollutant-specific basis 

to emissions of PM2.5 and its precursors, for which (1) the source is major, (2) the 

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 existing 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 period 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 average rate shall include fugitive emissions to the extent 

quantifiable, and emissions associated with startups, shutdowns, 

and malfunctions.

(ii) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating 

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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 information 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 average 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 actual 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 noncompliant 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 exceeded 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 pollutant.

(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) above.

(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 paragraph (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 contaminantemitting 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 the 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 facility. 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 the 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 major 

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 replacement;

(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 

Environmental Coordination Act of 1974 (or any superseding 

legislation) or by reason of a natural gas curtailment plan pursuant 

to the Federal Power Act;

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

section 125 of the 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 approved to use under any permit issued under 

40 CFR 51.165;

(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 polluting 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 FACILITY means, on a pollutant specific 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 

PM2.5, 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) PM2.5 means airborne particulate matter with a nominal aerodynamic diameter 

of 2.5 micrometers or less as measured by the reference test methods in 

paragraph (h). Gaseous emissions which condense to form PM2.5 at ambient 

temperatures shall also be included as PM2.5. 

(8) PRECURSORS means, for the purposes of this rule, nitrogen oxides (NOx) 

and sulfur dioxides (SO2).

(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 operation 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 significant 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 

projections 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 unrelated 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 (SO2) as 

PM2.5 precursors, and PM2.5.

(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 emit 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

PM2.5: 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 nonRECLAIM facility and any device at a RECLAIM 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 PM2.5

and the ratio required in Regulation XIII or Rule 2005 for NOx and SO2

as applicable; and

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(C) Certification 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 limitations 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 conducted of alternative sites, sizes, production processes, 

and environmental control techniques for such proposed source and 

demonstration 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 polluting 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 

PM2.5 or its precursors to avoid applicability of this 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 relieve any owner or operator of the 

responsibility to comply fully with applicable provisions 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 increase. 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 whether 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 units. A significant emissions increase of a regulated NSR 

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

projected actual emissions and the baseline actual emissions [as defined in 

sub-paragraph (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 emit 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 equals 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 that 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 provisions 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 

requirements, emission limitations, and work practice requirements that 

were established prior to the effective date of the PAL.

(2) Definitions. The following definitions in subparagraphs (e)(2)(A) through (K) 

apply for the purposes 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 

significant 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-attainment areas. 

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(E) PLANTWIDE APPLICABILITY 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 paragraphs (e)(1) through (e)(15) of this 

rule.

(F) PAL EFFECTIVE DATE generally means the date of issuance of the 

PAL permit. The PAL effective date for an increased PAL is the date 

any emissions unit which is part of the PAL major modification becomes 

operational and begins to emit the PAL pollutant.

(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 POLLUTANT means the pollutant for which a PAL is established 

at a major polluting facility.

(K) SIGNIFICANT EMISSIONS UNIT means an emissions unit that emits 

or has the potential to emit a PAL pollutant in an amount that is equal to 

or greater than the significant level (as defined in 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 subparagraph (e)(2)(D) of this rule.

(3) Permit application 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 designated 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 calculation 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 subparagraph (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 or 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 effective 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 units 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 facility 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 participation 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 paragraph (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 specify 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 for 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 the 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 be 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 effective 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) Reduce 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 reopen the PAL permit for the 

following:

(A) Reduce the PAL to reflect newly applicable Federal 

requirements (for example, New Source Performance 

Standard) 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 subparagraph (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 distributing 

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 

incorporating 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 may 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 required 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 

polluting 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 or 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 propose 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 this 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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Rule 1325 (Cont.) (Amended December 5, 2014)

(iv) Any other information the owner or operator 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 of 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 reductions, 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 shall 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 paragraph (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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Rule 1325 (Cont.) (Amended December 5, 2014)

(A) The plan shall require that the Executive Officer may increase a PAL 

emission limitation only if the major polluting facility 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 allowable emissions of the new or modified emissions unit(s) 

exceeds the PAL. The level of control that would result from 

BACT equivalent controls on each significant or major emissions 

unit shall be determined by conducting a new BACT analysis at 

the time the application is submitted, unless the emissions unit is 

currently required to comply with a BACT or LAER requirement 

that was established within the preceding 10 years. In such a case, 

the assumed control level for that emissions unit shall be equal to 

the level of BACT or LAER with which that emissions unit must 

currently comply.

(iii) The owner or operator obtains 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 increase 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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Rule 1325 (Cont.) (Amended December 5, 2014)

(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 

determined 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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Rule 1325 (Cont.) (Amended December 5, 2014)

(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 otherwise be accounted for in the 

process; and

(iii) Where the vendor of a material or fuel, which is used in or at the 

emissions unit, publishes a range of pollutant content from such 

material, the owner or operator must use the highest value of the 

range to calculate the PAL pollutant emissions unless the 

Executive Officer determines there is site-specific data or a sitespecific monitoring program to support another content within the 

range.

(D) CEMS. An owner or operator using CEMS to monitor PAL pollutant 

emissions shall meet the following requirements:

(i) 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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Rule 1325 (Cont.) (Amended December 5, 2014)

(F) Emission factors. An owner or operator using emission factors to 

monitor PAL pollutant emissions shall meet the following requirements:

(i) All emission factors shall be adjusted, if appropriate, to account for 

the degree of uncertainty or limitations in the factors' development;

(ii) The emissions unit shall operate within the designated range of use 

for the emission factor, if applicable; and

(iii) If technically practicable, the owner or operator of a significant 

emissions unit that relies on an emission factor to calculate PAL 

pollutant emissions shall conduct validation testing to determine a 

site-specific emission factor within 6 months of PAL permit 

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 emissions 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, where an owner or operator of an emissions unit cannot 

demonstrate a correlation between the monitored parameter(s) and the 

PAL pollutant emissions rate at all operating points of the emissions 

unit, the Executive Officer shall, at the time of permit issuance:

(i) Establish default value(s) for determining compliance with the 

PAL based on the highest potential emissions reasonably estimated 

at such operating point(s); or

(ii) Determine that operation of the emissions unit during operating 

conditions when there is no correlation between monitored 

parameter(s) and the PAL pollutant emissions is a violation of the 

PAL.

(I) Re-validation. All data used to establish the PAL pollutant must be revalidated through performance testing or other scientifically valid means 

approved by 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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Rule 1325 (Cont.) (Amended December 5, 2014)

(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 certifying 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 recorded 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 added 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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Rule 1325 (Cont.) (Amended December 5, 2014)

fully operational or replaced with another monitoring system, and 

whether the emissions unit monitored by the monitoring system 

continued to operate, and the calculation of the emissions of the 

pollutant or the number determined by method included in the 

permit, as provided by paragraph (e)(12)(G) of this rule.

(vii) A signed statement by the responsible official (as defined by the 

applicable title V operating permit program) certifying the truth, 

accuracy, and completeness of the information provided in the 

report.

(B) Deviation report. The major 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 experienced the deviation or that was 

exceeded;

(iii) Emissions resulting from the deviation or the exceedance; and

(iv) A signed statement by the responsible official (as defined by the 

applicable title V operating permit program) certifying the truth, 

accuracy, and completeness 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 requirements 

(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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Rule 1325 (Cont.) (Amended December 5, 2014)

Any facility, with accumulated emission increases in excess of 100 tons per year of 

PM2.5 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 Requirements

(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 following 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 major 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 Executive 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 any 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, for 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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Rule 1325 (Cont.) (Amended December 5, 2014)

(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 pollutant, 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 explanation 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, added 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 provisions 

(g)(2) through (5) do not apply to the project. 

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Rule 1325 (Cont.) (Amended December 5, 2014)

(h) Test Methods

For the purpose of this rule only, testing for point sources of PM2.5 shall 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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