SJVUAPCD 2020 - 1 8/18/11 RULE 2020 EXEMPTIONS (Adopted September 19, 1991; Amende d July 16, 1992; Amended December 17, 1992 ; Amended October 21, 1993; Amended July 21, 1994; Amended September 17, 19 98; Amended June 21, 2001; Amended March 21, 2002; Amended December 19, 2002; Amended Septem ber 21, 2006; Amended December 20, 2007; Amen ded August 18, 2011)

1.0 Purpose

This rule specifi es emissions units that ar e not required to obtain an Authority to Construct or Permit to Operate. This rule also specifi es the recordkeep ing requirements to verify the exemption and outlines the compliance sche dule for emissions units that lose the exemption after installation.

2.0 Applicability

This rule shall apply to any source th at emits or may emit air contaminants.

3.0 Definitions

3.1 Agricultural Source: equi pment or operations that em it air contaminants and that are used in the produ ction of crops or the raisi ng of fowl or animals.

3.2 Clean Produced Water: as defined in Rule 1020 (Definitions).

3.3 Emissions Unit: as defined in Rule 2201 (New and Modified Stationary Source Review Rule).

3.4 HAP: a hazardous air pollutant listed in Section 112(b) of th e federal Clean Air Act or the lists prepared by the Californi a Air Resources Board pursuant to Section
44321 of the California Health and Safety Code that have OEHHA approved
health risk values.

3.5 HAP Source: an emi ssions unit that is subject to an emissions limitation, a performance standard, work practice stan dard, or other requ irements under an applicable provision of any of the following regulations:

3.5.1 National Emissi on Standards for Hazardous Air Pollutants (NESHAPS),
Maximum Achievable Control Technology (MAC T) standard, or other requirements promul gated pursuant to S ection 112 of the federal Clean Air Act (42 U.S. Code , 7401, et. seq.).

3.5.2 Airborne Toxic Control Measures (ATCM) adopted by the California Air
Resources Board in accordance with re quirements of Section 39658 of the California Health and Safety Code.SJVUAPCD 2020 - 2 8/18/11 3.5.3 A rule contained in Regulation VII (Toxic Air Po llutants) of the District Rules and Regulations.

3.6 Indirect Heat Tr ansfer System: a heat transfer system in which the products of
combustion do not co me into direct c ontact with the material being heated.

3.7 Location: any single site at a build ing, structure, facility, or installation.

3.8 Low Emitting Unit: an em issions unit with an uncontrolled emi ssions rate of each air contaminant,

3.8.1 Less than or equal to two pounds per day, or

3.8.2 If greater than tw o pounds per day, is less than or equal to 75 pounds per

year.

3.9 Major Source: as define d in Rule 2201 (New and Modified Stationary Source Review Rule).

3.10 NSPS Source: an em issions unit that is subject to an emissions limitation, performance standard, work practice stan dard, or other requ irements under an applicable provision of 40 CFR, Part 60, New Source Performance Standards (NSPS).

3.11 Portable Emissions Unit: as de fined in Rule 2280 (Portable Equipment Registration).

3.12 Reconstructed Stationary Source: a Reconstructed Stat ionary Source as defined in Rule 2201 (New and M odified Stationary Source Revi ew), or a Reconstruction as
defined in 40 CFR Part 60 Subpart A.

3.13 Roadmix: a mi xture of tank bottoms from crude oil storage tanks, material from crude oil spills, or other cr ude-oil-containing so il mixed with aggr egates and soils,
that is used as a ba se or cover material for roads, parking lots, berms, tank and well locations, or similar applications.

3.14 Routine Replacement: as defined in Rule 2201 (New and Modi fied Stationary Source Review).

3.15 Stationary Source: as defined in Rule 2201 (New a nd Modified Stationary Source Review).

3.16 True Vapor Pressure: as defined in Rule 4623 (Storage of Organic Liquids).SJVUAPCD 2020 - 3 8/18/11 3.17 Unloading Rack : any aggregate or combinat ion of equipment or control equipment that un loads organic liqu id into a storage tank from tank trucks, trailers, or railroad tank cars. The unloading rack is the portion of the connection system
from the connection at the in let of the organic liquid pump to and including the
hose and connector at the delivery tank.

3.18 Wind Machine: a machine consisti ng of a large fan mounted on a tower and powered by an internal combustion engi ne, used exclusively to provide frost protection to agricultural cr ops by affecting a heat tran sfer by moving warmer atmospheric air downward and mixing it w ith the colder air surrounding a crop.

4.0 Precluded Source Categories

No Authority to Construct or Permit to Oper ate shall be required for the following source categories that are specifically precluded from District permitting requi rements by state or
federal law:

4.1 Any structure designed for and used ex clusively as a dwelling for not more than four families and any inci nerator used exclusively in connection with such structure (California Health and Sa fety Code Section 42310(b) and (c)).

4.2 Barbecue equipmen t that is not used for commercial purposes, (California Health and Safety Code Section 42310(d)).

4.3 Motor vehicles as defined by the Ve hicle Code of the St ate of California (California Health and Sa fety Code, Section 42310(a )), but not including any
emissions unit mounted on su ch vehicle that would otherwise require a permit under the provisions of the District Rule s and Regulations.

4.4 Locomotives, airplanes, and watercraft used to transport passengers or freight. This exemption is not intended to apply to equipment used for the dredging of waterways or to equipment used in pile driving adjacent to or in waterways.

5.0 District Perm it Exemptions

An Authority to Construct or Permit to Operat e shall not be required for an emissions unit covered under District Exempt So urce Categories listed in Sect ions 6.0 or 7.0, unless one or more of the following is true:

5.1 The source is a NSPS source;

5.2 The source is a HAP source;SJVUAPCD 2020 - 4 8/18/11 5.3 The APCO makes a determination that a permit shall be required because the source may not operate in co mpliance with all District rules and regulations; or

5.4 The owner specifically re quests a Permit to Operate.

6.0 District Exempt Source Categories

Except as require d by Section 5.0, no Author ity to Construct or Perm it to Operate shall be required for an emissi on unit specified below. All othe r equipment within that source category shall requir e an ATC or PTO.

6.1 Combustion and Heat Transfer Systems

6.1.1 Steam generators, steam superheater s, water boilers, water heaters, steam cleaners, and closed indi rect heat transfer systems that have a maximum input heat rating of 5,00 0,000 Btu per hour (gross) or less and is equipped
to be fired ex clusively with:

6.1.1.1 Natural gas containing no more than five (5) percent by weight hydrocarbons heavier than butane and no more than 1.0 grain of total sulfur per 100 standard cubic feet of gas; or

6.1.1.2 Liquefied petroleum gas c ontaining no more than two (2) percent by volume hyd rocarbons heavier than butane and no more than 15 grains of total sulfur per 100 standard cubic feet of gas; or

6.1.1.3 Any combination of gases sp ecified in Sections 6.1.1.1 and
6.1.1.2.

6.1.1.4 The percent by weight hydr ocarbons conten t heavier than
butane shall be determ ined by using the latest version of ASTM E-260 (Standard Pr actice for Packed Column Gas Chromatography).

6.1.1.5 The gas sulfur content shall be determined by using the latest version of ASTM D-1072 (Sta ndard Test Me thod for Total Sulfur in Fuel Gases by Comb ustion and Barium Chloride Titration), ASTM D-3246 (Standard Test Method for Sulfur in Petroleum Gas by Oxidative Mi crocoulometry) , or ASTM D6228 (Standard Test Method fo r Determination of Sulfur Compounds in Natural Gas and Gaseous Fuels by Gas Chromatography and Flame Ph otometric Detection).SJVUAPCD 2020 - 5 8/18/11 6.1.1.6 Test methods other than speci fied in Section 6. 1.1.4 or Section 6.1.1.5 may be used provided they have been appr oved, in writing, by the United States En vironmental Prot ection Agency (EPA) and the District Air Pollution Cont rol Officer (APCO).

6.1.2 Piston type internal combustion engines with a manufacturer's maximum continuous rating of 50 brakin g horsepower (bhp) or less.

6.1.3 Gas turbine engines with a maximu m heat input rating of 3,000,000 Btu per hour or less at ISO Standard Day Conditions.

6.1.4 Equipment used ex clusively for sp ace heating, other than boilers.

6.1.5 Multiple chambered or equivalent incinerators used to destroy animals from a wildlife habitat for the sole purpose of disease control, as authorized by a public official.

6.1.6 Wind machines.

6.2 Cooling Towers: Water cool ing towers that have a circ ulation rate of less than 10,000 gallons per minute, a nd that are not used for co oling of process water, water from barometric jets, or wa ter from barometric condensers.

6.3 Graphic Arts Equipment: Printing, co ating, or laminating facility with a total graphic arts mate rial usage of:

6.3.1 Less than or equal to two gallons per any day, or

6.3.2 If greater than two gallons per day, is less than or equa l to 30 gallons per

year.

6.3.3 Graphic arts materials are any ink, coating, adhesive, fountain solution, thinner, retarder, or cleaning solution.

6.4 Food Processing Equipment

6.4.1 Equipment, exclud ing charbroilers subject to Rule 4692 (Commercial Charbroiling) and boilers, used in eating establishments or other retail
establishments for the purpose of pr eparing food for hu man consumption.

6.4.2 Mixers and blenders used in bake ries where the products are edible and intended for human consumption.SJVUAPCD 2020 - 6 8/18/11 6.4.3 Ovens at bakeries provided that th e total production from the bakery is less than 1,000 pounds of produc t per operating day and th e oven is fired solely on natural gas and the oven has a rating less than 5 MMBtu per hour.

6.4.4 Smokehouses for preparing food in which the maximum horizontal inside
cross-sectional area does not exceed 20 square feet.

6.5 Plastic/Rubber Processing: Emissions units used exclusively fo r the extruding or the compression molding of r ubber products or plastics, where no plasticizer or blowing agent is present.

6.6 Storage Equipment: Containers, rese rvoirs, or tanks used exclusively for:

6.6.1 The storage or processi ng of clean produced water as represented in Figure 1 as being below the oil/water line.

6.6.2 The storage of crude oil with 0.87 62 specific gravity or higher (30oAPI or lower) as measured by test method API 2547 or ASTM D-1298-80, having a capacity of 1 00 bbl or less, and is not subject to a VOC control requirement of Rule 4623 (Storage of Organic Liquids).

6.6.3 The storage of crude oil with specific grav ity lower than 0.8762 (greater than 30oAPI) as measured by test me thod API 2547 or ASTM D-1298-80, and existing before June 1, 1989, having a capacity of 100 bbl or less, and is not subject to a VOC control requirement of Rule 4623 (Storage of Organic Liquids). This exemption shal l not apply to a new tank installed after June 1, 1989.

6.6.4 The storage of organi c material with a capacity of 250 gallons or less
where the actual st orage temper ature does no t exceed 150oF.

6.6.5 The unheated storage of organic ma terial with an initial boiling point of 302oF or greater as m easured by test me thod ASTM D-86.

6.6.6 The storage of fuel oils or non- air-blown asphalt wi th 0.9042 specific gravity or higher (25oAPI or lower) as measured by test method API 2547
or ASTM D-1298-80.

6.6.7 The storage of petroleu m distillates used as motor fuel with 0.8251 specific gravity or higher (40oAPI or lower) as measured by test method API 2547
or ASTM D-1298-80 and havi ng a capacity of 19,800 gallons (471 bbl) or
less.

6.6.8 The storage of refine d lubricating oils.SJVUAPCD 2020 - 7 8/18/11 6.6.9 The storage of liquef ied gases in unven ted (except for emergency pressure relief valves) pressure vessels.

6.6.10 The storag e of produced fluids in portable tanks, to be used for less than six months at any one (1 ) location and is not su bject to a VOC control requirement of Rule 4623 (Storage of Organic Liquids).

6.6.11 Mobile trans port, delivery, or cargo tanks on vehicl es for delivery of
VOCs.

6.7 Transfer Equipment

6.7.1 Loading racks, as defined in Rule 1020 (Definitions), and unloading racks
that are:

6.7.1.1 At a location that, in total, tr ansfers less than 4, 000 gallons in any one day of organic material th rough all loadin g and unloading racks, and the organic material is exclusively:

6.7.1.1.1 Unheated organic material s with an initial boiling point of 302oF or greater as measured by te st method ASTM D-86, or

6.7.1.1.2 Fuel oil wi th 0.8251 specific gravity or higher (40oAPI or lower) as m easured by test me thod API 2547 or
ASTM D-1298-80.

6.7.1.2 Used exclusively for the transfer of:

6.7.1.2.1 Crude oil, as phalt, or residual oi l stored in tanks not required to be permitted in accordance with this rule;

or

6.7.1.2.2 Crude oil with 0.8762 specific gravity or higher (30oAPI or lower) as measured by test method API
2547 or ASTM D-1298-80 and the crude oil has TVP less than 1.5 psia at the storage container’s maximum organic liquid storage temperature.

6.7.1.3 Attached to an organic material delivery vehicle and used exclusively for the transfer of crude oil, asphalt, or residual oil.

6.7.2 Equipment used exclusively for the transfer of refined lubricating oil.SJVUAPCD 2020 - 8 8/18/11 6.7.3 The TVP of an organic liquid shall be determined by measuring the Reid Vapor Pressure (RVP) using ASTM D 323-94 (Test Method for Vapor Pressure for Petroleum Products), and converting the RVP to TVP at the tank’s maximum organic liquid storage temperature. The conversion of RVP to TVP shall be performed in acco rdance with the pr ocedures in the oil and gas section of “ARB Tec hnical Guidance Document to the
Criteria and Guidelines Regulation for AB 2588 ”, dated August 1989.

6.7.4 The latest version of the Lawrence Berkeley National Laboratory “Test Method for Vapor Pressure of Reac tive Organic Compounds in Heavy Crude Oil Using Gas Chromatograph” , as approved by ARB and EPA,
shall be used to determine the TVP of crude oil with an API gravity of
26 degrees or less, or for any API gravity that is specified in this test
method.

6.7.5 Test method other than specified in Section 6.7.3 and 6.7.4 may be used provided it has been approved, in writing, by the United States Environmental Protection Agency (E PA) and the District Air Pollution Control Officer (APCO).

6.8 Surface Coating Operations

6.8.1 Application equipment for architectural surface coatings used for commercial or residential applications . Architectural su rface coating is defined as any coating applied to stationary structures and their appurtenances, to mobile homes, to pavements, or to curbs. This exemption does not apply to coating application equipm ent used in the manufacturing of architectural com ponents and appurt enances that are
coated before their installatio n as part of a structure.

6.8.2 Surface coating oper ations, except for powder coating operations, which
use less than one quart of coating pe r day or less than eight gallons of coating per year.

6.8.3 Powder coating operat ions that use le ss than five poun ds of coating material per day or less than fifty pounds of coat ing material per year.

6.9 Solvent Cleaning Operations

Unheated, nonconveyorized cleaning e quipment (not incl uding the control enclosures):

6.9.1 With an open surface area of 10.0 square feet or less, an d internal volume of 92.5 gallon s or less;SJVUAPCD 2020 - 9 8/18/11 6.9.2 Using only organic solvents w ith an initial boiling point of 248oF or greater as dete rmined by ASTM 1078-78; and

6.9.3 From which less than 25 gallons of solvent per year are lost to the atmosphere from all such equipment at the stationary source. Solvent lost shall not include solvent that is recy cled or disposed of properly. Any person claiming exemption pursuant to this section shall maintain adequate monthly records to substantiate their exempt status.

6.10 Brazing, sold ering, or weld ing equipment.

6.11 Equipment used exclusively to compress or hold dry natural gas. Any internal combustion engine or other em issions unit associ ated with the operation that would otherwise require a written permit is not exempt.

6.12 Fugitive emission s sources such as valv es and flanges associated with an emissions unit that is exempt from a written permit.

6.13 Unvented (except for em ergency pressure relief valves) pressure vessels associated
with an emissions unit that is exempt from a written permit.

6.14 Fugitive emissions sources and pressure vessels that are associated with an
emissions unit for which a wr itten permit is re quired shall be incl uded as part of such emissions unit. A separa te permit for the fugitive s ource or pressure vessel is not required.

6.15 Pits and ponds as defined in Rule 1020 (Definitions).

6.16 Portable Emissions Units: a portable emissions unit for whic h a written permit is otherwise required, shall be exempt from the perm itting requirements provided that all of the following conditions are met:

6.16.1 The emission s unit has a valid registration ob tained in accordance with the provisions of Rule 2280 (Portable Equipment Registration), the Statewide Portable Equipmen t Registration Program (Calif ornia Code of Regulation Title 13, Division 3, Chap ter 9, Article 5, Secti ons 2450-2465), or other equipment registration program approved by the APCO; and

6.16.2 The portable emissi ons unit is not su bject to the Dist rict's Title V permitting requirements (Rule 2520, Federally Mandated Operating Permits).SJVUAPCD 2020 - 10 8/18/11 6.17 Roadmix manufacturing an d application operations

6.17.1 Roadmix manufacturing opera tions, provided that:

6.17.1.1 The roadmix is used exclusiv ely on properties owned or operated by the company which operates the roadmix manufacturing operation and gene rated the roadmix feedstock, excluding aggr egates, and

6.17.1.2 The roadmix feedstock does not contain refined hydrocarbons.

6.17.1.3 Notwithstanding the provisions of Section 6.17.1.1, an exempt roadmix manufacturing operator may donate roadmix material to non-profit organizations.

6.17.2 Roadmix application operations.

6.18 Laboratory testing equipm ent and quality control testing equipment used exclusively for chemical and physical analysis, provided:

6.18.1 Emission s from such equipm ent do not exceed 2.0 pounds per day or 75 pounds per year, and

6.18.2 The equi pment is not a HAP source.

6.19 Low Emitting Units, ex cept those which belong to a source category listed in Sections 6.1 through 6.18 sha ll not requir e an Authority to Cons truct or Permit to Operate.

6.19.1 Low Emitting Units, which belong to a source cat egory listed in Sections 6.1 through 6.18, shall re quire an Authority to Co nstruct or Permit to Operate unless they are specifically exempted in the applicable source category section.

6.19.2 Notwithstanding Sections 6. 19 and 6.19.1, Low Emitting Units, with
uncontrolled HAP emissions that may cause a significa nt health risk to the public, shall require an Authority to Construct or Permit to Operate.SJVUAPCD 2020 - 11 8/18/11 6.20 Agricultural Sources

6.20.1 Agricultural sources at a stationary source that, in a ggregate, produce
actual emissions less than one-half of the ma jor source thresholds. For the purposes of determining permitting applic ability, fugitive emissions, except fugitive dust emissions, are included in determining aggreg ate emissions.

6.20.2 In no case shall the exemption in Section 6.20.1 apply to a stationary source required to obtain Title V permits according to Rule 2520 (Federally Mandated Operating Permits).

7.0 District Exempt Activities

No Authority to Construct or Permit to Operate shall be required for the following
activities:

7.1 Routine replacement of a whole or partial emissions unit where the replacement part is the same as the original emissions unit in all re spects except fo r the serial
number and the action does not create a reconstruc ted Stationary Source.

7.2 The venting of California Public Utility Commission quality natural gas from pipelines and compressors for the sole purpose of pipeline and compressor repair and or maintenance, pr oviding that such emissions cons ist solely of residual natural gas that is vented after the equipment is is olated or shut down and that th e residual
amounts have been reduced as much as practical prio r to venting.

7.3 Repairs or maintenance not involving struct ural changes to any emissions unit for which a permit has been gr anted (California Health and Safety Code, Section 42310(a)(5)(A)).

7.4 The detonation of explos ives for research and develo pment activity, provided the quantity of explosiv es detonated does not excee d 100 pounds per day and 1,000 pounds per year at a sing le stationary source.

7.5 Pilot tests for soil re mediation projects, provided that all of the following
conditions are met:

7.5.1 The sole purpose of the pilot test is to determin e the VOC concentration in
the soil in order to desi gn or size the appropriat e control equipment for the
soil remediat ion project;

7.5.2 The pilot test will not last more than five days; andSJVUAPCD 2020 - 12 8/18/11 7.5.3 The effluent gas stream from the pilot test is contro lled by either carbon canisters, a thermal or catalytic incinerator, or an IC engine.

8.0 Administrative Requirements

Recordkeeping shall be required to verify or maintain any ex emption for which the exemption is based on a throughput or emissions limita tion. Such records shall be retained for at least two years and provided to the AP CO upon request.

9.0 Compliance Schedule

The owner or operator of an emissions unit that was exempt from written permits at the time of installation, which becomes subject to the provis ions of Rule 2010 (Permits Required), through loss of exemption, sh all submit an application for a Permit to Operate
within six months from the date of adoption of this rule and shall not be subject to Rule 2201 (New and Modified Stationary Source Re view Rule), until su ch time that the
emissions unit is modified.SJVUAPCD 2020 - 13 8/18/11 Figure 1 Oil/water line Heat Exchanger Oil
and Water

Steam

To Sales Oil and
Water

Oil

Depurator

Depurator

To Steam
Generation Equipment Valve

Reject Oil
and Water

WaterWater& Hydrocarbons

Water Water Noncondensible
Gas to
Incinerator

or Vent

To Injection

Well Water Source Oil
Well

Spent Regeneration Brine Backwash Drain
Tank

Settling
Tank Shipping
Tank Wash
Tank Desander

Gauge
Tank

Condensate
Tank Schematic
Production Facilities
for Crude Oil

Water

Oil

Raw Water
Tank Produced
Water Tank

Filtered
Water Tank Brine Tank Softeners Filters

Soft Water
Tank Waste Water
TankSJVUAPCD 2020 - 14 8/18/11 This page intentionally blank.