2000 - 1

(Adopted October 15, 1993)(Amended December 7, 1995)(Amended February 14, 1997)

(Amended April 11, 1997)(Amended October 20, 2000)(Amended May 11, 2001)

(Amended May 6, 2005)

RULE 2000. GENERAL

(a) Program Objective

RECLAIM is a market incentive program designed to allow facilities flexibility

in achieving emission reduction requirements for Oxides of Nitrogen (NOx), and

Oxides of Sulfur (SOx) under the Air Quality Management Plan using methods

which include, but are not limited to: add-on controls, equipment modifications,

reformulated products, operational changes, shutdowns, and the purchase of

excess emission reductions.

(b) Purpose

This rule provides the definitions for terms found in Regulation XX - RECLAIM.

Any identical term found elsewhere in District Rules and Regulations with a

conflicting definition shall be superseded, for the purposes of this regulation, by

the definition provided in this rule.

(c) Definitions

(1) ACTUAL EMISSIONS means the emissions of a pollutant from an

affected source determined by taking into account, actual emission rates

and actual or representative production rates (i.e., capacity utilization and

hours of operation).

(2) AIR CONTAMINANT means any air pollutant for which there is a

national ambient air standard, or precursor to such air pollutant, including

but not limited to: carbon monoxide, sulfur dioxide, nitrogen oxides,

particulate matter, lead compounds and volatile organic compounds.

(3) ALLOCATION is the number of RECLAIM Trading Credits (RTCs) [as

defined in paragraph (c)(63)] a RECLAIM facility holds for a specific

compliance year, as referenced in the Facility Permit.

(4) ALLOWABLE EMISSIONS means the emissions rate of a stationary

source calculated using the maximum rated capacity of the sources (unless

the source is subject to federally enforceable limits which restrict the

operating rate or hours of operation, or both) and the most stringent of the

following:
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2000 - 2

(A) the applicable standards set forth in 40 CFR part 60 or 61;

(B) any applicable State Implementation Plan emissions limitation,

including those with a future compliance date; or

(C) the emissions rate specified as a federally enforceable permit

condition, including those with a future compliance date.

(5) ALTERNATIVE EMISSION FACTOR is a SOx emission value in units

of pounds per million standard cubic feet or pounds per thousand gallons

derived using the methodology specified in Appendix A, Protocols for

Monitoring, Reporting, and Recordkeeping for Oxides of Sulfur (SOx)

Emissions, Chapters 3 and 4.

(6) ANNUAL PERMIT EMISSIONS PROGRAM (APEP) is the annual

Facility Permit compliance reporting, review, and fee reporting program.

(7) BASIN means the South Coast Air Basin as defined by the California Air

Resources Board.

(8) BEST AVAILABLE RETROFIT CONTROL TECHNOLOGY (BARCT)

means an emission limitation that is based on the minor source criteria and

methodology specified in the most current version of the District's BACT

Guidelines. Parameters used for cost-effectiveness, such as equipment

life less than ten years or operating conditions, except for hours of

operation for gas turbines used as peaking units at Power Producing

Facilities, shall be included as Facility Permit conditions.

(9) BEST AVAILABLE CONTROL TECHNOLOGY (BACT) means the

most stringent emission limitation or control technique which:

(A) has been achieved in practice for such category or class of source;

or

(B) is contained in any state implementation plan (SIP) approved by

the Environmental Protection Agency (EPA) for such category or

class of source; or

(C) is any other emission limitation or control technique, including

process and equipment changes of basic or control equipment

which is technologically feasible for such class or category of

source or for a specific source, and cost-effective as compared to

AQMP measures or adopted District rules.
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2000 - 3

A specific limitation or control technique shall not apply if the Facility

Permit holder demonstrates that such limitation or control technique is

not presently achievable. BACT shall be at least as stringent as

Standards of Performance for New Stationary Sources (40 CFR Part 60).

BACT for sources located at major polluting facilities shall be at least as

stringent as Lowest Achievable Emissions Rate (LAER) as defined in the

federal Clean Air Act Section 171(3) [42 U.S.C. Section 7501(3)].

BACT for sources not located at major polluting facilities shall be as

specified in the BACT Guidelines for such source categories, unless the

BACT specified in the Guidelines is less stringent than required by state

law in which case BACT shall be as defined in state law considering

economic and technical feasibility.

When updating the BACT Guidelines to become more stringent for

sources not located at major polluting facilities, economic and technical

feasibility shall be considered in establishing the class or category of

sources and the applicable requirements.

(10) BREAKDOWN means a condition caused by circumstances beyond the

Facility Permit holder's control which result in fire, or mechanical or

electrical failure. If the breakdown causes an emission increase at a

RECLAIM facility in excess of emissions under normal operating

conditions, determined pursuant to Rules 2011 - Requirements for

Monitoring, Reporting and Recordkeeping for Oxides of Sulfur (SOx)

Emissions, and 2012 - Requirements for Monitoring, Reporting and

Recordkeeping for Oxides of Nitrogen (NOx) Emissions, and

Appendices A of Rules 2011 and 2012, the excess emissions from such

breakdown are not counted in determining compliance with the

RECLAIM facility’s annual allocation if all criteria specified in Rule

2004 (i)(2)(A) are met. Malfunctions in monitoring, reporting, and

recordkeeping equipment as required by Rule 2011 and Rule 2012 shall

not be considered to be a breakdown under Rule 2004 (i).

(11) BUYER is any person who acquires RTCs from another person through

purchase, trade or other means of transfer.
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2000 - 4

(12) CEMENT KILN is a device for the calcining and clinkering of limestone,

clay and other raw materials, and recycle dust in the dry-process

manufacture of cement.

(13) CERTIFIED REPORT means there has been a reasonable and diligent

inquiry into the accuracy of the report by the certifying official and that

the contents of the report are true and accurate to the best of his or her

knowledge.

(14) CLINKER is a mass of fused material produced in a cement kiln from

which the finished cement is manufactured by milling and grinding.

(15) COMBUSTION EQUIPMENT is any equipment that burns fuel,

including but not limited to natural gas or fuel oil in order to operate.

Combustion equipment includes, but is not limited to, boilers, turbines,

heaters, engines, kilns, furnaces, ovens, dryers, flares, and afterburners.

(16) COMPLIANCE YEAR is the twelve-month period beginning on January

1 and ending on December 31 for Cycle 1 facilities, and beginning on

July 1 and ending on June 30 for Cycle 2 facilities.

(17) CONCENTRATION LIMIT is a value expressed in ppmv, is measured

over any continuous 60 minutes, is elected by the Facility Permit holder

for a large NOx source or a super compliant SOx major source which has

been reclassified as a SOx process unit, and is specified in the Facility

Permit.

(18) CONTINUOUS EMISSIONS MONITORING SYSTEM (CEMS) means

the equipment required by the Protocols for Monitoring, Reporting and

Recordkeeping for Oxides of Sulfur (SOx) and Oxides of Nitrogen

(NOx) Emissions used to continuously measure all parameters necessary

to determine mass emissions expressed in pounds per hour (lb/hr) for

SOx and NOx. A CEMS includes, but is not limited to, the following

component parts and systems:

(A) sulfur dioxide pollutant concentration monitor;

(B) flow monitor;

(C) nitrogen oxides pollutant concentration monitor;

(D) diluent gas monitor (oxygen or carbon dioxide);

(E) a data acquisition and handling system;

(F) moisture monitor, as applicable; and

(G) sample acquisition, conditioning, and transport system, as

applicable.
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2000 - 5

(19) CONTINUOUS PROCESS MONITORING SYSTEM (CPMS) is

equipment that measures process parameters including, but not limited to,

fuel usage rate, oxygen content of stack gas, or process weight, and meets

all performance standards for CPMS set forth in the Protocol for

Monitoring, Reporting and Recordkeeping for Oxides of Nitrogen (NOx)

Emissions. Such CPMS data will be used in conjunction with the

concentration limit or emission rate, as stated in the Facility Permit, to

determine mass NOx emissions.

(20) CONTINUOUSLY MEASURE means to measure at least once every 15

minutes except during periods of routine maintenance and calibration, or

as otherwise specified in the Protocols for Monitoring, Reporting, and

Recordkeeping Oxides of Nitrogen (NOx) and Oxides of Sulfur (SOx)

Emissions.

(21) CONTRACTOR means a person, other than the facility permit holder

and its employees, who operates equipment at a RECLAIM facility.

(22) DAILY means occurring once between 12 midnight and 24 hours later at

midnight.

(23) DIRECT MONITORING DEVICE is a device that measures the

emissions of NOx or SOx or fuel sulfur content and all other variables as

specified in Rules and Protocols for Monitoring, Reporting, and

Recordkeeping for Oxides of Nitrogen (NOx) and Oxides of Sulfur

(SOx) Emissions.

(24) DISTRICT CENTRAL NOx STATION is the District's designated

computer system for NOx emission monitoring.

(25) DISTRICT CENTRAL SOx STATION is the District's designated

computer system for SOx emission monitoring.

(26) ELECTRIC UTILITY is all in-Basin facilities which generate power and

are owned or operated by any one of the following: Southern California

Edison, Los Angeles Department of Water and Power, City of Burbank,

City of Glendale, City of Pasadena, or any of their successors.

(27) ELECTRONICALLY REPORT means transmitting measured data

between the point of measurement and the point of receipt of the

transmission, as specified in Rules 2011 and 2012 and their Appendices.
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2000 - 6

(28) EMERGENCY STANDBY EQUIPMENT is equipment solely used on a

standby basis in cases of emergency and is listed as emergency

equipment on the Facility Permit; or is equipment that does not operate

more than 200 hours per compliance year and is listed as emergency

equipment in the Facility Permit.

(29) EMISSION FACTOR is the applicable value specified in Tables 1 or 2

of Rule 2002.

(30) EMISSION RATE is a value expressed in terms of NOx mass emissions

per unit of heat input, is derived using the methodology specified in the

Protocol for Monitoring, Reporting and Recordkeeping for Oxides of

Nitrogen (NOx) Emissions, and is used to calculate NOx mass emissions

on an average basis.

(31) EMISSION REDUCTION CREDIT (ERC) means the amount of credit

for emission reductions verified and determined by the Executive Officer

pursuant to Regulation XIII - New Source Review.

(32) ENTRY is the process by which a facility not included in the RECLAIM

program pursuant to Rule 2001 - Applicability, can enter the program

pursuant to conditions established in Rule 2001.

(33) EXTERNAL OFFSET means an emission reduction determined pursuant

to Rule 1309(b)(1) and approved by the Executive Officer for use to

mitigate an emission increase, where the emission reduction is made at a

facility other than the facility creating the emission increase.

(34) EXISTING EQUIPMENT is any equipment operating at a RECLAIM

facility for which there was a District Permit to Construct, temporary

Permit to Operate, or Permit to Operate, or equipment which existed but

was exempt pursuant to Rule 219 - Equipment Not Requiring a Written

Permit Pursuant to Regulation II, before October 15, 1993.

(35) EXISTING FACILITY is any facility that submitted Emission Fee

Reports pursuant to Rule 301- Permit Fees, for 1992 or earlier years, or

with valid District Permits to Operate issued prior to October 15, 1993,

and continued to be in operation or possess valid District permits on

October 15, 1993.

(36) EXPIRATION DATE is the last date a pollutant can be emitted under the

authority conveyed by a Facility Permit specifying allowable emissions

based upon the amount of RTCs held by a Facility Permit holder.
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2000 - 7

(37) FACILITY means any source or grouping of sources or other air

contaminant-emitting activities which are located on one or more

contiguous properties within the Basin 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 defined in 40

CFR Section 55.2. Such above-described groupings, if on noncontiguous

properties, connected only by land carrying a pipeline, shall not be

considered one facility. Equipment 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 facility on-shore.

(38) FACILITY PERMIT is a permit which consolidates permits for existing

equipment, a permit for previously non-permitted NOx and/or SOx

emitting Rule 219 equipment, and permits for any new equipment, into a

single permit. A Facility Permit shall serve as a Permit to Construct new

or altered equipment, pursuant to Rule 201 and a Permit to Operate,

pursuant to Rules 202(a), 202(b) and 203, for all equipment at a

RECLAIM facility. Requirements for non-RECLAIM pollutants shall

also be included in the Facility Permit.

(39) FEDERALLY ENFORCEABLE means all permit limitations and

conditions which are enforceable by the EPA Administrator.

(40) FUNCTIONALLY IDENTICAL SOURCE REPLACEMENT is the

replacement of an existing source with another source that performs the

same function, and has a maximum rated capacity less than or equal to

the source being replaced.

(41) GASEOUS FUELS include, but are not limited to, any natural, process,

synthetic, landfill, sewage digester or waste gases with a gross heating

value of 300 Btu per cubic foot or higher, at standard conditions.

(42) HIGH EMPLOYMENT/LOW EMISSIONS FACILITY (HILO) is a new

facility which has a high employment to pollution ratio. A HILO Facility

has an emission rate for NOx, SOx, ROC, and PM10, per full-time

manufacturing employee, that is equal to or less than one-half (1/2) of

any estimate stated in the AQMP for emissions per full-time

manufacturing employee by industry class in the year 2010.
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2000 - 8

(43) ISSUE DATE is the first date a pollutant can be emitted under the

authority conveyed by a Facility Permit specifying allowable emissions

based upon the amount of RTCs held by a Facility Permit holder.

(44) MAJOR MODIFICATION means any modification, at an existing major

polluting facility that will cause:

(A) an increase of one or more pounds per day, of the facility's

potential to emit oxides of nitrogen (NOx) or volatile organic

compounds (VOCs) provided the facility is located in the South

Coast Air Basin; or

(B) an increase of 40 tons per year or more, of the facility's potential

to emit oxides of sulfur (SOx); or

(C) an increase of 15 tons per year or more, of the facility's potential

to emit particulate matter with an aerodynamic diameter of less

than or equal to a nominal ten microns (PM10); or

(D) an increase of 100 tons per year or more, of the facility's potential

to emit carbon monoxide (CO).

For an existing major polluting facility located in the Riverside County

portion of the Salton Sea Air Basin (SSAB) and the Riverside County

non-Palo Verde area of the Mojave Desert Air Basin (MDAB), major

modification means any modification that will cause an increase of 25

tons per year or more, of the facility's potential to emit NOx or VOC;

whereas the requirements for SOx, PM10 and CO are as specified above

in paragraphs (44)(B), (44)(C), and (44)(D).

(45) MAJOR STATIONARY SOURCE means any facility which emits, or

has the potential to emit 10 tons per year or more of NOx or 100 tons per

year or more of SOx.

(46) MANUFACTURING EMPLOYEES are those full-time employees

directly involved in the manufacture or sale of the product created by a

RECLAIM facility.

(47) MITIGATION FEE PROGRAM means a program where power

producing facilities that exceed annual allocations and meet specified

applicability requirements in Rule 2004 subdivision (o), pay a

participation fee to the District for generation of NOx emission reductions

by the District to mitigate emission exceedances.
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2000 - 9

(48) MODIFICATION means any physical change or change in the method of

operation of a source. The following shall not be considered a

modification: (A) routine maintenance and repair; (B) any change in

operator or ownership of the facility; (C) use of an alternative fuel as

required by District rule or federal or state statute, regulation or law; and,

(D) an increase in the hours of operation or in the production rate, unless

a permit condition limiting hours of operation, throughput or mass

emissions would be exceeded.

(49) MONTHLY EMISSIONS REPORT is a report which takes inventory of

all RECLAIM pollutant emissions at a facility during a calendar month,

submitted by the Facility Permit holder to the Executive Officer, within

30 days of the close of each month.

(50) NATURAL GAS is a mixture of gaseous hydrocarbons, with at least 80

percent methane (by volume), and of pipeline quality, such as the gas

sold or distributed by any utility company regulated by the California

Public Utilities Commission.

(51) NEW FACILITY is any facility which has received all District Permits to

Construct on or after October 15, 1993.

(52) NON-RECLAIM POLLUTANTS are those pollutants other than

RECLAIM NOx and SOx.

(53) NORMAL OPERATING CONDITION means the condition that

conforms with the established norm or standard prescribed in Rule 2011 -

Requirements for Monitoring, Reporting and Recordkeeping for Oxides

of Sulfur (SOx) Emissions and Rule 2012 - Requirements for

Monitoring, Reporting, and Recordkeeping for Oxides of Nitrogen

(NOx) Emissions, and the Appendices thereto.

(54) NOx EMISSIONS means the sum of nitric oxides and nitrogen dioxides

emitted, calculated as nitrogen dioxide.

(55) ON-SITE, OFF-ROAD MOBILE SOURCES means non-stationary

devices powered by an internal combustion engine or motor of 50

horsepower or greater, used off public roads and solely at the facility to

propel, move, or draw persons or property. Such devices include, but are

not limited to: forklifts, aerial lifts, motor graders, backhoes, excavators,

dozers, trenchers, and tractors.
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2000 - 10

(56) POWER PRODUCING FACILITY is an electric utility as defined in

(c)(26), operated as of May 11, 2001, which has a generation capacity of

50 megawatts or more of electrical power.

(57) QUARTER is a three-month period from January 1 to March 31, April 1

to June 30, July 1 to September 30, or October 1 to December 31,

inclusive.

(58) QUARTERLY CERTIFICATION OF EMISSIONS is a certified report

inventorying all RECLAIM pollutant emissions at a facility during a

quarter.

(59) RATED BRAKE HORSEPOWER (bhp) is the maximum rating specified

by the manufacturer and listed on the nameplate.

(60) RECLAIM is the Regional Clean Air Incentives Market established by

this Regulation.

(61) RECLAIM AIR QUALITY INVESTMENT PROGRAM (RECLAIM

AQIP) is a voluntary emission reduction compliance option for

RECLAIM facilities pursuant to Rule 2004 subdivision (p), where a

participation fee is paid by the RECLAIM facility to the District for

generation of NOx emission reductions by the District.

(62) RECLAIM POLLUTANTS are NOx emissions and SOx emissions at a

facility subject to RECLAIM requirements excluding any NOx or SOx

emissions from on-site, off-road mobile sources and any SOx emissions

from equipment burning natural gas exclusively, unless the emissions are

SOx emissions at a facility that elected to enter RECLAIM pursuant to

Rule 2001 (i)(2)(A) and including NOx and SOx emissions:

(A) from rental equipment as required to be reported by the Facility

Permit holder pursuant to Rule 2011, Appendix A, Chapter 1 or

Rule 2012, Appendix A, Chapter 1;

(B) from equipment operated by a contractor as required to be

reported by the Facility Permit holder pursuant to Rule 2011,

Appendix A, Chapter 1 or Rule 2012, Appendix A, Chapter 1;

(C) from ships during the loading or unloading of cargo and while at

berth at a RECLAIM facility which was required to provide

offsets pursuant to Rule 2005 paragraph (b)(2) and subdivision (f)

for these emissions; and
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2000 - 11

(D) from non-propulsion equipment on ships within Coastal Waters

under District jurisdiction and from ships destined for or traveling

from a RECLAIM facility which was required to provide offsets

pursuant to Rule 2005 paragraph (b)(2) and subdivision (f) for

these emissions.

(63) RECLAIM TRADING CREDIT (RTC) is a limited authorization to emit

a RECLAIM pollutant in accordance with the restrictions and

requirements of District rules and state and federal law. Each RTC has a

denomination of one pound of RECLAIM pollutant and a term of one

year, and can be held as part of a facility's Allocation or alternatively

may be evidenced by an RTC Certificate.

(64) RECLAIM TRADING CREDIT LISTING is maintained by the

Executive Officer and is the official and controlling record of RTCs held

by any person.

(65) REMOTE TERMINAL UNIT (RTU) is a data collection and

transmitting device used to transmit data and calculated results to the

District Central Station Computer.

(66) RENTAL EQUIPMENT is equipment which is rented or leased for

operation by someone other than the owner of the equipment.

(67) REPORTED VALUE, for the purpose of developing Allocations, means

the emissions data provided to the District by the facility representative,

pursuant to Rule 301.

(68) RTC CERTIFICATES are issued by the District and constitute evidence

of RTCs held by any person and are used for information only. The

official and controlling record of RTCs held by any person is the RTC

listing maintained by the Executive Officer.

(69) RESEARCH OPERATIONS are those operations the sole purpose of

which is to permit investigation of experimental research to advance the

state of knowledge or state-of-the-art technology.

(70) SELLER is any person who transfers RTCs to another person through

sale, trade or other means of transfer.

(71) SOURCE is any individual unit, piece of equipment or process which

may emit an air contaminant and which is identified, or required to be

identified, in the RECLAIM Facility Permit.

(72) SOx EMISSIONS means sulfur dioxides emitted.
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2000 - 12

(73) STANDARD INDUSTRIAL CODE (SIC) is the classification number

assigned to a facility based on its primary economic activity as specified

in the "Standard Industrial Classification Manual," published by the

Office of Management and Budget, dated 1987.

(74) STRUCTURAL BUYER is any RECLAIM facility which has not sold

RTCs as of May 1, 2000 for any compliance year during which the

RECLAIM AQIP is requested and meets one of the following criteria:

(A) was or is initially totally permitted for construction of new

equipment on or after October 15, 1993; or

(B) emitted 6 tons or less of NOx in the 1999 compliance year,

provided:

(i) all equipment requiring a permit at the facility is equipped

with a minimum of BARCT as defined in paragraph

(c)(8); and

(ii) the emission reductions requested through RECLAIM

AQIP do not exceed 50 percent of the facility’s emissions

in compliance year 1999.

(75) THROUGHPUT means a measure of activity including, but not limited

to: weight of glass pulled for a glass melting furnace, weight of clinker

for cement kilns, amount of nitric acid used in metal stripping processes,

amount of nitric or sulfuric acid manufactured for nitric or sulfuric acid

manufacturing processes, weight of aluminum produced for aluminum

production and/or fuel usage for all other sources as reported pursuant to

Rule 301.

(76) TRADING ZONE is one of two areas delineated in Rule 2005 - New

Source Review for RECLAIM, Map 1.

(77) ZONE OF ORIGINATION is the trading zone or Regulation XIII zone in

which an RTC is originally assigned by the District.