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REGULATION 2

PERMITS

RULE 2

NEW SOURCE REVIEW

INDEX

2-2-100 GENERAL

2-2-101 Description 

2-2-110 Exemption, Temporary Replacement

2-2-111 Exemption, PSD Monitoring

2-2-112 102Exemption, Emissions From Operation of Abatement Equipment Devices and

Techniques

2-2-113 Deleted June 15,1994 

2-2-103 Incorporation by Reference of Federal PSD Provisions

2-2-200 DEFINITIONS

2-2-201 Adjustment to Emission Reduction Credit Reductions for Federal Purposes

2-2-202 Baseline Area, PSD 

2-2-203 Baseline Concentration, PSD 

2-2-204 Baseline Date, PSD 

2-2-205 Baseline Period, PSD 

2-2-206 Best Available Control Technology (BACT)

2-2-207 2-2-203 Best Available Retrofit Control Technology (BARCT) 

2-2-204 California Coastal Waters

2-2-208 CEQA 

2-2-209 205Class I Areas, PSDArea 

2-2-206 Contemporaneous

2-2-210 Complete Application207 Creditable

2-2-208 Cumulative Increase

2-2-209 Cumulative Increase Baseline Date

2-2-210 District BACT Pollutant
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2-2-211 Contiguous Properties Emission Reduction Credit

2-2-212 Cumulative Increase Federal Land Manager

2-2-213 EIR Fully Offset Source

2-2-214 Emission Offsets Greenhouse Gases (GHGs) 

2-2-215 Facility Hazardous Air Pollutant (HAP)

2-2-216 Feasible Indian Governing Body

2-2-217 Federal Land Manager

2-2-218 Federally Enforceable 

2-2-219 Impact Area 

2-2-220 Major Facility

2-2-221 218Major Modification of a Major Facility

2-2-219 Net Air Quality Benefit

2-2-220 Net Emissions Increase

2-2-221 Offsets

2-2-222 Modeling, PSD Pollutant-Specific Basis 

2-2-223 Modified Source or Facility PSD Pollutant

2-2-224 Net Air Quality Benefit PSD Project

2-2-225 New Source

2-2-226 Organic Compound

2-2-227 Organic Compound, Non-Precursor (NPOC)

2-2-228 Organic Compound, Precursor (POC)

2-2-229 Particulate Matter (PM)

2-2-230 PM10 

2-2-231 Point of Maximum Ground Level Impact 

2-2-232 Prevention of Significant Deterioration (PSD) Increments 

2-2-233 Significant Air Quality Impacts, PSD 

2-2-234 Source

2-2-235 Year, Month, and Day

2-2-236 Hazardous Air Pollutant

2-2-237 Major Facility Review (MFR) 
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2-2-238 Potential to Emit

2-2-239 Regulated Air Pollutant 

2-2-240 Best Available Retrofit Control Technology (BARCT)

2-2-241 Replacement Source

2-2-242 Contemporaneous 

2-2-243 Reasonably Available Control Technology (RACT)

2-2-226 Related Sources

2-2-227 Significant

2-2-300 STANDARDS

2-2-301 Best Available Control Technology Requirement

2-2-302 Offset Requirements, Precursor Organic Compounds and Nitrogen Oxides, NSR 

2-2-303 Offset RequirementRequirements, PM2.5, PM10 and Sulfur Dioxide, NSR 

2-2-304 PSD BACT Requirement 

2-2-305 Carbon Monoxide Modeling Requirement, PSD 

2-2-306 Non-Criteria PollutantSource Impact Analysis, PSD Requirement 

2-2-306 PSD Additional Impacts Analysis Requirements

2-2-307 Denial, Failure Consideration of all Facilities to be in Compliance 

2-2-308 Class I Area Requirements, PSD Impacts

2-2-308 NAAQS Protection Requirement

2-2-309 Denial for Air Quality Related Values, PSD Compliance Certification

2-2-310 Denial, Failure to Use BACT 

2-2-311 Denial, Failure to Provide Offsets

2-2-312 Denial, Failure to Meet Permit Conditions

2-2-313 Offset Requirements, Replacement Sources of Precursor Organic Compounds and 

Nitrogen Oxides, NSR

2-2-314 Federal New Source Review Applicability

2-2-315 Federal Prevention of Significant Deterioration Applicability

2-2-316 No Net Increase Status Report 

2-2-400 ADMINISTRATIVE REQUIREMENTS

2-2-401 Application

2-2-402 Complete ApplicationNotice to EPA and Federal Land Manager of PSD Applications

2-2-403 Authority to Construct 
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2-2-404 Authority to Construct, Preliminary Decision

2-2-405 404Publication of Notice and Opportunity for Public Comment

2-2-406 405Public Inspection 

2-2-407 406Authority to Construct, Final Action

2-2-408 Appeal 

2-2-409 Requirements, Permit to Operate 

2-2-410 407Issuance, Permit to Operate

2-2-411 408Permit to Operate, Final Action

2-2-412 409Source Obligation, Relaxation of Enforceable Conditions

2-2-413 Public Notice, Schools 

2-2-414 PSD Air Quality Analysis

2-2-415 Notice to EPA and Federal Land Managers 

2-2-416 Report, PSD Increment Consumption 

2-2-417 Visibility, Soils, and Vegetation Analysis 

2-2-418 PSD Analysis Stack Heights 

2-2-419 410Permit Conditions

2-2-420 Semiconductor Fabrication Area, Annual BACT and 411 Offset CertificationRefunds 

2-2-421 412Demonstration of NOx and POC Offset Deferral, Annual Permit Renewal Program Equivalence

2-2-413 No Net Increase Status Report

2-2-414 BACT Workbook

2-2-500 MONITORING AND RECORDS

2-2-501 PSD Pre-Construction Ambient Air Monitoring

2-2-502 PSD Post-Construction Monitoring

2-2-600 MANUAL OF PROCEDURES

2-2-601 Ambient Air Quality Monitoring

2-2-602 Good Engineering Practice (GEP) Stack Height 

2-2-603 PSD Air Quality Evaluation Procedure 

2-2-604 Emission Increase Baseline Emissions Calculation Procedures, New or Modified Sources

2-2-605 604Emission Increase/Decrease Calculation Procedures, New Sources and Changes at 

Existing Sources

2-2-605 Emission Reduction Credits 

2-2-606 EmissionCredit Calculation Procedures, Offsets
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2-2-607 Emission2-2-606 Potential to Emit (PTE) Increase Calculation Procedures, Emission 

Reduction Credits for Mobile Sources Purposes of Determining Cumulative Increase

2-2-608 Alternate Emission607Cumulative Increase Calculation Procedures, Replacement Sources

2-2-608 Facility Un-Offset Cumulative Increase Calculation Procedures

2-2-609 Official Record of Cumulative Increases and Offsets

2-2-610 Facility Emissions Calculation Procedures, Cargo Carriers

2-2-611 Emission Calculation Procedures, Fugitive Emissions
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REGULATION 2

PERMITS 

RULE 2

NEW SOURCE REVIEW

(Readopted and Renumbered July 17, 1991) 

(Adopted _____, 2012)

2-2-100 GENERAL

2-2-101 Description: This Rule shall applyapplies to all new and modified sources whichthat

are subject to the requirements of RegulationSection 2-1-301 and/or 2-1-302. The 

purpose of this Rule is to provide forimplement the review of new and modified 

sources and provide mechanisms, including the use of Best Available Control 

Technology (BACT) and emission offsets, by which authorities to construct such 

sources may be granted. This rule shall comply with the no net increase requirements 

of Section 40919 (b) of the Health and Safety Code as demonstrated by the 

requirements of Section 2-2-316. TheNew Source Review provisions of the federal 

and California Clean Air Acts (including the federal non-attainment New Source 

Review provisions of 40 CFR 51.165 and the, Prevention of Significant Deterioration, 

and Minor New Source Review provisions of 40 CFR 51.166 are hereby incorporated 

by reference) and the no-net-increase requirements of the California Health and 

Safety Code, among other requirements.

(Amended June 15, 1994) 

2-2-110 Exemption, Temporary Replacement: The APCO shall exempt a person from the 

requirements of Sections 2-2-301 of this Rule if the subject of the application is a 

temporary replacement source that will be in operation at the facility for less than 

three months from the date of issuance of the permit to operate or from the date of 

initial operation. (Amended June 15, 1994) 

2-2-111 Exemption, PSD Monitoring: The APCO may exempt an applicant from the 

requirements of subsection 2-2-414.3 provided that the applicant demonstrates by 

modeling to the satisfaction of the APCO that the cumulative emission increase minus 

the emission reduction credits from the new or modified facility would cause air quality 

impacts less than the following, or may exempt an applicant from the requirements of 

subsection 2-2-414.3 if the existing ambient air quality concentrations in the impact 

area are no greater than the following: 

(micrograms per cubic meter, ug/m3)

Carbon monoxide: 8-hr average 575

PM10: 24-hr average 10

Sulfur dioxide: 24-hr average 13

Lead: 3-month average 0.1

Mercury: 24-hr average 0.25
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Beryllium: 24-hr average 0.0001

Fluorides: 24-hr average 0.25

Vinyl chlorides: 24-hr average 15

Total reduced sulfur: 1-hr average 10

Hydrogen sulfide: 1-hr average 0.2

Reduced sulfur compounds: 1-hr average 10

Nitrogen dioxide: annual average 14

(Amended June 15, 1994)

2-2-1122-2-102Exemption, Emissions From Operation of Abatement EquipmentDevices And Techniques:

The BACT requirements of Section 2-2-301 shall not apply to emissions of secondary 

pollutants whichthat are the direct result of the use of an abatement device which 

compliesor emission reduction technique implemented to comply with the BACT or 

BARCT requirements for control of another pollutant. However, the APCO shall 

require the use of Reasonably Available Control Technology (RACT) for control of 

these secondaryemissions of such pollutants. (Amended June 15, 1994)

2-2-113 Deleted June 15, 1994 

2-2-103 Incorporation by Reference of Federal PSD Provisions: Where federal PSD 

provisions in 40 C.F.R. Section 52.21 are incorporated by reference in this Rule, all 

associated procedures, definitions, and other regulatory provisions in the Code of 

Federal Regulations applicable for implementing such provisions are also 

incorporated by reference and shall be followed and applied by the APCO in 

implementing such provisions, including but not limited to all of the implementing 

definitions set forth in 40 C.F.R. Section 52.21(b), which include the definitions in 

Sections 52.21(b)(13) (baseline concentration), 52.21(b)(14) (major source baseline 

date), 52.21(b)(15) (baseline area), 52.21(b)(18) (secondary emissions), and 

52.21(b)(50) (subject to regulation). Where such regulatory provisions are

incorporated by reference, the incorporation is to the version of that regulatory 

provision in effect upon <date of adoption of proposed amendments>.

2-2-200 DEFINITIONS

2-2-201 Emission Reduction Credit: Except as provided by subsection 2-2-201.3 an 

emission reduction, calculated in accordance with Section 2-2-605, which exceeds 

the emission reductions required by measures in the current Clean Air Plan approved 

by the BAAQMD or required by federal, state, or District laws, rules, and regulations. 

To qualify as an emission reduction credit, the emission reduction must be in excess 

of the reductions achieved by, or achievable by, the source using Reasonably 

Available Control Technology (RACT), and must also be real, permanent, 

quantifiable, and enforceable. 

201.1 Unless calculated in accordance with the procedures of Section 2-2-605, that 
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portion of an NSR emission cap, which was part of an APCO approved 

alternative baseline, shall not qualify as an emission reduction credit. 

201.2 All emission reduction credits shall be enforceable by permit conditions in the 

authority to construct and permit to operate, except that, in the case of source 

closures where no permit is required for the source being shut down, the 

emission reduction credit shall be enforceable through appropriate 

contractual provisions in a legally binding and irrevocable written agreement 

in which provisions will be made expressly for the benefit of the District. 

201.3 For the purpose of complying with the PSD requirements of Sections 2-2-111, 

304, 305, 306, 308 of this Rule and 40 CFR 51.166, emission reduction 

credits shall not be adjusted for reductions required by measures in the 

current Clean Air Plan approved by the BAAQMD which exceed the 

reductions required by use of Reasonably Available Control Technology 

(RACT). 

The permanence of a closure shall be identified in a letter from the source and/or in a 

Banking Certificate. (Amended June 15, 1994) 

2-2-201 Adjustment to Emission Reductions for Federal Purposes: An adjustment made, 

for purposes of the equivalence demonstration in 2-2-412, to an emission reduction

due to changes in federal requirements between issuance of a banking certificate and 

its use. The adjustment is made as if the source providing the offsets were in 

operation, at the original baseline levels, on the date of credit use.

2-2-202 Baseline Area, PSD: All intrastate Air Quality Control Regions, as defined in 40 CFR 

52.21, (and every part thereof) designated as attainment or unclassifiable under 

107(d)(1)(D) or (E) of the Clean Air Act in which a source establishing a baseline date 

would construct or would have an air quality impact equal to or greater than 1 μg/m3 

(annual average) of the pollutant for which the baseline date is established. 

2-2-203 Baseline Concentration, PSD: The ambient concentration level which exists in the 

baseline area at the time of establishment of the applicable baseline date. A baseline 

concentration is determined for each pollutant for which a baseline date is 

established. The baseline concentration shall include the actual emissions 

representative of sources in existence on the applicable baseline date. 

2-2-204 Baseline Date, PSD: The earliest date after December 20, 1977, for sulfur dioxide 

and particulate matter, or after February 8, 1988, for nitrogen dioxide, for each 

baseline area on which the first complete application under Section 2-2-304 is 

submitted or was submitted to EPA under 40 CFR 52.21. The baseline date is 

established for each pollutant for which PSD increments have been established. 

2-2-205 Baseline Period, PSD: The period against which a change in emissions is to be 

measured.

2-2-206 Best Available Control Technology (BACT): For anyAn emission limitation, control 

device, or control technique applied at a source or modified source, except cargo 

carriers,that is the moremost stringent of:

206202.1 The most effective emission control device or technique whichthat has been 

successfully utilized for the type of equipment comprising such a source; or

206202.2The most stringent emission limitation achieved by an emission control device 

or technique for the type of equipment comprising such a source; or

206202.3Any emission The most effective control device or technique or most stringent 

emission limitation that the APCO has determined to be technologically 

feasible and for a source, taking into consideration cost-effective by the 

APCOeffectiveness, any ancillary health and environmental impacts, and 

energy requirements; or
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206202.4The most effective emission control limitation for the type of equipment comprising 

such a source which the EPA states, prior to or during the public comment 

period,that is contained in an approved implementation plan of any state, 

unless the applicant demonstrates to the satisfaction of the APCO that such 

limitations are not achievable. Under no circumstances shall the emission 

control required be less stringent than the emission control required by any 

applicable provision of federal, state or District laws, rules or 

regulations.limitation is not achievable.

The APCO shall periodically publish and update, a BACT Workbook specifying the 

requirements for commonly permitted sources. BACT will be determined for a source 

by using the workbook as a guidance document or, on a case-by-case basis, using 

the most stringent definition of this Section 2-2-206.

Under no circumstances shall BACT be less stringent than any emission control 

required by any applicable provision of federal, state or District laws, rules or 

regulations. 

2-2-203 Best Available Retrofit Control Technology (BARCT): An emission limitation that 

has been adopted or proposed to be adopted as part of the current Clean Air Plan 

approved by the District pursuant to the California Clean Air Act of 1988 as

implementing the maximum degree of emissions reduction achievable by a class or 

category of source, taking into account environmental, energy and economic impacts.

2-2-207 204California Coastal Waters: ThatThe area between the California-bounded by (i) the

coast of the State of California and (ii) the line established by starting at the point on 

the California coast at the California-Oregon border at the Pacific Ocean, and 

proceeding:

thence to 40.0°N, 125.5°W;

thence to 39.0°N, 125.5°W;

thence to 38.0°N, 124.0°W;

thence to 37.0°N, 123.5°W;

thence to 36.0°N, 122.5°W;

thence to 35.0°N, 121.5°W;

thence to 34.0°N, 120.5°W;

thence to 33.0°N, 119.5°W;

thence to 32.5°N, 118.5°W;

and thence to an ending point on the California coast at the California-Mexico border

at the Pacific Ocean: .

thence to 42.0oN 125.5°W 

thence to 41.0°N 125.5°W 

thence to 40.0°N 125.5°W 

thence to 39.0°N 125.5°W 

thence to 38.0°N 124.0°N 
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thence to 37.0°N 123.5°W 

thence to 36.0°N 122.5°W 

thence to 35.0°N 121.5°W 

thence to 34.0°N 120.5°W 

thence to 33.0°N 119.5°W 

thence to 32.5°N 118.5°W

2-2-208 CEQA: The California Environmental Quality Act, Public Resources Code, Section 

21000, et seq., and the CEQA guidelines, Title 14, California Code of Regulations, 

Section 15000, et seq. (Amended May 17, 2000) 

2-2-209 2-2-205 Class I Areas, PSDArea: Point Reyes National Seashore and any other area 

designated as a Class I Area under Part C of the Clean Air Act. All other areas in the 

District are Class II Areas.

2-2-210 Complete Application: An application for an Authority to Construct a new or 

modified source which contains the following:

210.1 Sufficient information for the APCO to determine the emissions from such 

new or modified source and to quantify emissions from the proposed 

source(s) of offsets.

210.2 Any information requested by the APCO in order to determine the air quality 

impact of such new or modified source or facility.

210.3 Fees for New and Modified Sources, as described in Regulation 3-302.

210.4 The information required by Sections 2-2-414 and 417 provided the 

application is subject to the PSD requirements of Section 2-2-304, 305, or 

308.

210.5 CEQA-related information which satisfies the requirements of Regulation 2-1-

426.

210.6 A certification stating whether the source triggers the requirements of Section 

2-2-413.

210.7 A specific designation of all information contained in the application that is 

asserted to be a trade secret pursuant to Section 6254.7 of the Government 

Code and not a public record. Such designated information shall be provided 

in such a manner whereby it may be easily separated from information which 

is not asserted to be a trade secret. The applicant shall include, for each

separate portion of the application which is asserted to be a trade secret, a 

statement signed by a responsible representative of the applicant identifying 

that portion of Government Code Section 6254.7(d) upon which the assertion 

is based and a brief statement setting forth the basis for this assertion.

(Amended November 20, 1991)

2-2-211 Contiguous Properties: Two or more parcels of land with a common boundary or 

separated solely by a public roadway or other public right-of-way. 

2-2-212 2-2-206Contemporaneous: Occurring (i) within a five year period of time immediately prior 

to the date of a complete application for an authority to construct or permit to operate

for a source; or (ii) on or after the date of a complete application for an authority to 

construct or permit to operate but prior to initial operation of the source (or for a 

source that is a replacement unit, as defined in 40 C.F.R. Section 51.165(a)(1)(xxi), 

that will replace an existing source in whole or in part, with respect to emission 

reduction credits being generated by the shutdown of the existing source being 

replaced, 90 days after initial operation of the replacement unit).

2-2-207 Creditable: For purposes of determining the net emissions increase associated with 

a new or modified source (or group of sources) under Section 2-2-220, an emission 

increase or decrease is creditable if it has not been relied on by a permitting agency 

in issuing a PSD permit, including a federal PSD permit or an authority to construct 

applying the PSD provisions of Sections 2-2-304 through 2-2-307, which permit is still 

in effect at the time of initial operation of the source(s).
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2-2-208 Cumulative Increase: The aggregate sum of all increases in emissions of any 

given increase in the potential to emit a pollutant from a facility pursuant to 

authoritiesauthorized by an authority to construct or permitspermit to 

operate issued after April 5, 1991 (unless a PSD Baseline Date is applicable), 

excludingmeasured against prior actual or potential emissions from a 

source which has lost its permit exemption per Regulation 2-1-424. 

(Amended 6/15/94; 10/7/98) 

2-2-213 EIR: Environmental Impact Report, as defined in Section 21061 of the Public 

Resources Code. 

2-2-214 Emission Offsets: Emission reduction credits which are used to mitigate cumulative 

increases of emissions. Emission offsets are emission reduction credits, from the 

District Emissions Bank, approved in accordance with Regulation 2, Rule 4, or , less 

any contemporaneous onsite emission reduction credits occurring after the submittal 

of an application for a new or modified source but priorcredited to the issuance of the 

authority to construct or permit to operate any such source, calculated in accordance 

with Section 2-2-605. Notwithstanding any existing permit conditions, that portion of 

an NSR emission cap, which was based on an APCO approved alternative baseline, 

may not be used as a source of offsets unless the proposed reduction is calculated in 

accordance with procedures specified in Section 2-2-605the procedures set forth in 

Section 2-2-607.

(Amended June 15, 1994) 

2-2-215 Facility: Any property, building, structure or installation (or any aggregation of 

facilities) located on one or more contiguous or adjacent properties and under 

common ownership or control of the same person that emits or may emit any air 

pollutant and is considered a single major industrial grouping (identified by the first 

two-digits of the applicable code in The Standard Industrial Classification Manual). In 

addition, facilities which include cargo loading or unloading from cargo carriers other 

than motor vehicles shall include the cargo carriers as part of the source which 

receives or loads the cargo. Accordingly, all emissions from such carriers while 

operating in the District, or within California Coastal Waters adjacent to the District, 

shall be included as part of the source emissions. 

215.1 For determining the cumulative increase at a facility subject to the offset 

requirements of Sections 2-2-302 and 303, related sources on a single 

property or contiguous properties, even though under different ownership, or 

related sources on non-contiguous properties under the same ownership 

shall be considered one facility. Related sources are those sources where the 

operation of one is dependent upon or affects the operation of the other. 

215.2 Notwithstanding the definition in Section 2-2-215 above, the emissions 

related to cargo carriers shall not be included when determining applicability 

of the requirements of Sections 2-2-304, 2-2-308, 2-6-301, and 2-6-310. 

215.3 For determining the cumulative increase at a facility subject to the offset 

requirements of Sections 2-2-302 and 303, facilities under the same 

ownership or entitlement to use that are located within a distance of three 

miles, property line to property line, shall be considered one facility if the 

facilities have the same first two digits in their Standard Industrial 

Classification codes, as determined from The Standard Industrial 

Classification Manual. (Amended November 3, 1993) 

2-2-216 Feasible: Capable of being accomplished in a successful manner within a 

reasonable period of time, taking into account economic, environmental, legal, social 

and technological factors, not in conflict with the mandated responsibilities and duties 

of the District. 

2-2-2172-2-209 Cumulative Increase Baseline Date: April 5, 1991, for all pollutants except 

PM2.5; and <effective date of revised regulation> for PM2.5.
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2-2-210 District BACT Pollutant: Precursor organic compounds (POC), non-precursor 

organic compounds (NPOC), oxides of nitrogen (NOx), sulfur dioxide (SO2), PM10, 

PM2.5, and carbon monoxide (CO).

2-2-211 Emission Reduction Credit: Emission reductions associated with a physical 

change, change in method of operation, change in throughput or production, or other 

similar change at a source that are in excess of the reductions required by applicable 

regulatory requirements, and that are real, permanent, quantifiable, and enforceable, 

as calculated in accordance with Section 2-2-605.

2-2-212 Federal Land Manager: With respect to any lands in the United States, the Secretary 

of the department with authority over such lands. , or a subordinate acting under the 

authority of such Secretary.

2-2-218 Federally Enforceable: All limitations and conditions which are enforceable by the 

Administrator of the U. S. EPA, including requirements developed pursuant to 40 CFR 

Parts 60 (NSPS), 61 (NESHAPS), 63 (HAP), 70 (State Operating Permit Programs) 

and 72 (Permits Regulation, Acid Rain), requirements contained in the State 

Implementation Plan (SIP) that are applicable to the District, any District permit 

requirements established pursuant to 40 CFR 52.21 (PSD) or District regulations 

approved pursuant to 40 CFR Part 51, Subpart I (NSR), and any operating permits 

issued under an EPA-approved program that is a part of the SIP and expressly 

requires adherence to any permit issued under such program. 

(Amended November 3, 1993) 

2-2-219 Impact Area: The area in which a new or modified facility would have a significant air 

quality impact. 

2-2-220 Major Facility: Any facility which the APCO determines to emit, on a pollutant 

specific basis, or determines will emit as a result of the issuance of an authority to 

construct, 100 tons per year or more of a specific pollutant subject to regulation under 

the federal Clean Air Act is 2-2-213Fully Offset Source: A source with an emission cap 

or emission rate contained in a permit condition for which the permit applicant 

provided offsets and/or contemporaneous on-site emission reduction credits for the 

entire amount of the emission cap or emission rate. A source for which the District 

provided offsets from the Small Facility Banking Account is not a fully offset source

(except where the District has been fully reimbursed for any offsets from the Small 

Facility Banking Account).

2-2-214 Greenhouse Gases (GHGs): The air pollutant that is defined in 40 C.F.R. Section 

86.1818-12(a), which is a single air pollutant made up of a combination of the 

following six constituents: carbon dioxide, nitrous oxide, methane, 

hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. GHG emissions shall 

be measured (i) based on total mass for purposes of determining whether a facility 

exceeds the 100/250 ton major PSD facility thresholds under Section 2-2-224.1; and 

(ii) as CO2 equivalent emissions (CO2e) according to the methodology set forth in 40 

C.F.R. Section 52.21(b)(49)(ii) for determining whether the emissions constitute a 

PSD pollutant as defined in Section 2-2-223, are regulated NSR pollutants as defined 

in 40 C.F.R. Section 52.21(b)(50), or constitute significant emissions as defined in 

Section 2-2-227.1.

2-2-215 Hazardous Air Pollutant (HAP): Any pollutant that is listed pursuant to Section 

112(b) of the federal Clean Air Act.
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2-2-216 Indian Governing Body: The governing body of any tribe, band, or group of Indians 

subject to the jurisdiction of the United States and recognized by the United States as 

possessing power of self-government.

2-2-217 Major Facility: For purposes of the New Source Review requirements of Regulation 

2, Rule 2, a major facility for that pollutant. 

220.1 Major Facility, MFR (Regulated Air Pollutants): Ais a facility that has the 

potential to emit 100 tons per year or more of any regulated air pollutant. For 

fugitive emissions of said pollutants, only those facilities from categories 

listed in 40 CFR 70.2 "Definitions -Major source (2)" shall be included for 

determining whether the facility is a major facility. Once any facility is 

determined to be a major facility, all fugitive emissions from the facility POC, 

NOx, SO2, PM10, PM2.5, and/or CO. Fugitive emissions shall be included in 

calculating the facility's emissions. 

220.2 Major Facility, MFR (Hazardous Air Pollutants): A facility that has the potential 

to emit 10 tons per year or more of a single hazardous air pollutant or 25 tons 

per year or more of a combination of hazardous air pollutants, or such lesser 

quantity as the EPA Administrator may establish by rule. All fugitive 

emissions of hazardous air pollutants are included in determining a facility's 

potential to emit. For radionuclides, the definition of a major facility shall be 

specified by the EPA Administrator by rule. 

220.3 Major Facility, PSD: A facility, subject to any requirement of Section 2-2-304, 305, 

306, 308 or 309, which emits or has the potential to emit 100 tons per year or more of 

any air pollutant if, it is facility’s potential to emit under this Section if and only if the 

facility is in one of the twenty eight (28) PSD source categories listed in Section 

169(1) of the federal Clean Air Act, or 250 tons per year or more for an unlisted 

category,Clean Air Act. A physical change at a facility that does not otherwise qualify 

as a major facility is a new major facility if the change would constitute a major facility 

by itself. 

(Amended November 3, 1993; Amended June 15, 1994) 

2-2-221 218Major Modification of a Major Facility: Any modification*: A new source as defined 

in Section 2-1-232, or a modified source as defined in Section 2-1-234, or any 

combination of such new and modified sources at a facility that are part of a single 

common project, that (i) are or will be located at an existing major facility that the 

APCO determinesand (ii) will cause an increase of the facility's in emissions by the of 

a pollutant for which the facility is a major facility, calculated according to Section 2-2-

604, of the following amounts or more:

POC: 40 tons per year 

NOx: 40 tons per year 

SO2: 40 tons per year 

PM10: 15 tons per year 

CO: 100 tons per year 

(Amended June 15, 1994) 

2-2-222 Modeling, PSD: Estimates of ambient concentrations of pollutants based on 

applicable air quality models, data bases and other requirements acceptable to the 

APCO. For modeling required by Sections 2-2-304 through 308 and 414, the air 

quality models, data bases and other requirements shall also be in accordance with 

the "Guideline on Air Quality Models", EPA-450/2-78-027R, July 1986 or as revised). 

Where an air quality impact model specified in the "Guideline on Air Quality Models" 

is inappropriate, the model may be modified or another model substituted provided 

that written approval from the Administrator of the EPA is obtained and the application 

is submitted for public comment in accordance with Section 2-2-405. Methods such 
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as those outlined in the "Workbook for the Comparison of Air Quality Models", April 

1977 (or as revised) shall be used to determine the comparability of air quality 

models. For modeling compliance with air quality standards, other than federal 

ambient air quality standards or federal PSD increments, applicable models must be 

approved by the APCO. 

2-2-223 Modified Source or Facility: Any existing source or facility which will undergo a 

physical change, change in the method of operation of, or addition to an existing 

facility which results or may result in either an increase, of the permitted emission 

level of a source, of any air pollutant subject to District control, or the emission of any 

such air pollutant not previously emitted in a quantity which would cause the source to 

fail an air toxic screening analysis performed in accordance with the current Air Toxic 

Risk Screening Procedure. Routine maintenance or repair or a change in ownership 

of itself shall not be considered a modification. Unless previously limited by a permit 

condition the following shall not be considered changes in method of operation: 

223.1 An increase in the production rate if such increase does not exceed the 

operating design capacity or the actual demonstrated capacity of the facility 

as approved by the APCO. 

223.2 An increase in the hours of operation.

223.3 Change in ownership.

223.4 Use of an alternative fuel or raw material if the source was capable of using 

such fuel or raw material prior to July 1, 1972, or had received permits to use 

such fuel or raw material.

(Amended June 15, 1994)

2-2-224 

POC: 40 tons per year

NOx: 40 tons per year

SO2: 40 tons per year

PM10: 15 tons per year

PM2.5: 10 tons per year

CO: 100 tons per year

*Note that the term “Major Modification” is not used in Regulation 2, Rule 2 for purposes of applying the 

Rule’s PSD requirements. The term “PSD Project” is used instead to define new facilities and 

modifications to existing facilities that are subject to the Rule’s PSD requirements. See Section 2-2-224.

2-2-219 Net Air Quality Benefit: A net improvement of air quality as determined by the APCO 

resulting from emission reduction credits impacting the same general area affected by

the new or modified source and which will be consistent with reasonable further 

progress towards the attainment of the applicable air quality standard.

(Amended June 15, 1994) 

2-2-225 New Source: A source which meets at least one of the following criteria shall be 

considered a new source:

225.1 Except sources which lose a permit exemption in accordance with Regulation 

2-1-424, any source constructed or proposed to be constructed after March 7, 

1979 which never had a valid District authority to construct or permit to 

operate.

225.2 Any source which was not in operation for a period of one year or more and 

did not hold a valid District permit to operate during this period of nonoperation, occurring after March 7, 1979.
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225.3 Any relocation of an existing source to a non-contiguous property.

225.4 Any replacement of a source, including an identical replacement of a source, 

occurring after March 7, 1979, regardless of when the original source was 

constructed.

225.5 Except as provided in Section 2-2-420, any replacement of an identifiable 

source within a group of sources permitted together under a single source 

number for the purpose of District permitting convenience. This specifically 

includes the replacement of identifiable pieces of pollutant emitting equipment 

which comprises a semiconductor fabrication area.

2-2-226 Organic Compound: Any compound of carbon, excluding carbon monoxide, carbon 

dioxide, carbonic acid, metallic carbides or carbonates, ammonium carbonate and 

methane.

2-2-227 Organic Compound, Non-Precursor (NPOC): The following are considered nonprecursor organic compounds:

methylene chloride; chloropentafluoroethane (CFC-115); 1,1,1-trichloroethane; 1,1,1-

trifluoro 2,2-dichloroethane (HFC-123); 2-chloro-1,1,1,2-tetrafluoroethane (HCFC124); trichlorofluoromethane(CFC-11); 1,1,2-trichloro 1,2,2-trifluoroethane (CFC-113); 

pentafluoroethane (HFC-125); 1,1,2,2-tetrafluororoethane (HFC-134); 1,1,1,2-

tetrafluorethane (HFC-134a); dichlorodifluoromethane (CFC-12); 1,1-dichloro 1-

fluoroethane (HFC-141b); 1-chloro 1,1-difluoroethane (HCFC-142b); 1,1,1-

trifluoroethane (HFC-143a); 1,2-dichloro 1,1,2,2-tetrafluorethane (CFC-114); 1,1-

difluoroethane (CFC-152a); chlorodifluoromethane (HCFC-22); trifluoromethane 

(HFC-23), and perfluorocarbons which fall into these classes:

(1) Cyclic, branched, or linear, completely fluorinated alkanes,

(2) Cyclic, branched, or linear, completely fluorinated ethers with no unsaturations,

(3) Cyclic, branched, or linear, completely fluorinated tertiary amines with no 

unsaturations, and

(4) Sulfur containing perfluorocarbons with no unsaturations and with sulfur bonds 

only to carbon and fluorine.

In addition, any compound designated as having a negligible contribution to 

photochemical reactivity by the U.S. Environmental Protection Agency as published in 

the Federal Register shall be considered a Non-Precursor Organic Compound.

(Amended June 15, 1994)

2-2-228 Organic Compound, Precursor (POC): Any organic compound as defined in 

Section 2-2-226 excepting the non-precursor organic compound defined in Section 2-

2-227.

2-2-229 Particulate Matter (PM): Any airborne finely divided solid or liquid material with an 

aerodynamic diameter smaller than 100 microns.

2-2-230 PM10: Particulate matter with aerodynamic diameter smaller than or equal to a 

nominal 10 microns.

2-2-231 Point of Maximum Ground Level Impact: The ground level geographic location 

where the projected air pollution concentrations for a given pollutant resulting from the 

new or modified facility emissions together with the background pollutant 

concentration for that given pollutant results in the maximum ground level pollutant 

concentration. The background pollutant concentration means the ambient 

concentration level resulting from the actual emissions of sources in existence and 

the projected ambient concentration levels for sources already permitted but not yet in 

operation. If the general public is effectively excluded from the property on which the 

point of maximum ground level impact is located, and the property is owned or 

controlled by the owner of the new or modified facility, such property shall not be 

considered as the point of maximum ground level impact. 

2-2-232 Prevention of Significant Deterioration (PSD) Increments: In areas designated as 

Class I, II or III, increases in pollutant concentration over the baseline concentration 

shall be limited to the following: 
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MAXIMUM ALLOWABLE INCREASE

(micrograms per cubic meter, μg/m3)

CLASS I

POLLUTANT

Particulate Matter:

PM10 Annual arithmetic mean 4

PM10 24-hr maximum 8

Sulfur Dioxide:

Annual arithmetic mean 2

24-hr maximum 5

3-hr maximum 25

Nitrogen Dioxide:

Annual arithmetic mean 2.5

CLASS II

Particulate Matter:

PM10 Annual arithmetic mean 17

PM10 24-hr maximum 30

Sulfur Dioxide:

Annual arithmetic mean 20

24-hr maximum 91

3-hr maximum 512

Nitrogen Dioxide:

Annual arithmetic mean 25

CLASS III

Particulate Matter:

PM10 Annual arithmetic mean 34

PM10 24-hr maximum 60

Sulfur Dioxide:

Annual arithmetic mean 40

24-hr maximum 182

3-hr maximum 700

Nitrogen Dioxide:

Annual arithmetic mean 50

For any period other than an annual period, the applicable increase may be exceeded 

during one such period per year at any one location.

(Amended June 15, 1994)

2-2-233 Significant Air Quality Impacts, PSD: Ambient air concentrations, resulting from 

new or modified facility emissions, that exceed any of the following levels:

SIGNIFICANT AIR QUALITY IMPACTS

(MICROGRAMS PER CUBIC METER, μG/M3)

POLLUTANT

Particulate Matter:

PM10, Annual arithmetic mean 1.0

PM10, 24-hr maximum 5

Sulfur Dioxide:

Annual arithmetic mean 1.0

24-hr maximum 5
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3-hr maximum 25

Nitrogen Dioxide:

Annual arithmetic mean 1.0

1-hr maximum 19

Carbon Monoxide:

8-hr maximum 500

1-hr maximum 2000

(Amended June 15, 1994)

2-2-234 Source: Any article, machine, equipment, operation, contrivance or related groupings 

of such which may produce 

and/or emit air pollutants.

2-2-235 Year, Month, and Day: Unless otherwise defined, a year shall be any rolling 365 

consecutive day period, a month shall be any rolling 31 consecutive day period and a 

day shall be any rolling 24 consecutive hour period.

2-2-236 Hazardous Air Pollutant (HAP): Any pollutant that is listed pursuant to Section 

112(b) of the federal Clean Air Act. (Adopted 11/3/93; 

Amended 5/17/00) 

2-2-237 Major Facility Review (MFR): Plantwide review of sources, emissions and regulatory 

requirements at facilities including, but not limited to, major facilities, phase II acid rain

facilities, subject solid waste incinerator facilities, designated facilities, and synthetic 

minor facility candidates, which are potentially subject to the permitting requirements 

of Regulation 2, Rule 6, and Title V of the federal Clean Air Act. (Adopted November 

3, 1993) 

2-2-238 Potential to Emit: The maximum capacity of a source or facility to emit a pollutant 

based on its physical and operational design. Any physical or operational limitation on 

the capacity of the facility to emit a pollutant, including air pollution control equipment 

and restrictions on hours of operation or on the type or amount of material 

combusted, stored, or processed, shall be treated as a part of its design only if the 

limitation, or the effect it would have on emissions, is federally enforceable. 

(Adopted November 3, 1993)

2-2-239 Regulated Air Pollutant: The following air pollutants are regulated:

239.1 Nitrogen oxides and volatile organic compounds;

239.2 Any pollutant for which a national ambient air quality standard has been 

promulgated;

239.3 Any Class I or Class II ozone depleting substance subject to a standard 

promulgated under Title VI of the federal Clean Air Act;

239.4 Any pollutant that is subject to any standard promulgated under Section 111 

of the federal Clean Air Act; and

239.5 Any pollutant that is subject to any standard promulgated under Section 112 

of the federal Clean Air Act.

(Adopted November 3, 1993)
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2-2-240 Best Available Retrofit Control Technology (BARCT): An emission limitation that 

is based on the maximum degree of reduction achievable, taking into account 

environmental, energy and economic impacts by each class or category of source 

and has been adopted or proposed to be adopted as part of the current Clean Air 

Plan required by the California Clean Air Act of 1988. (Adopted June 15, 

1994) 

2-2-241 Replacement Source: An identical source or a functionally equivalent source.

(Adopted June 15, 1994)

2-2-242 Contemporaneous: The five year period of time immediately prior to the date of 

application for an authority to construct or permit to operate. (Adopted June 15, 

1994) 

2-2-243 2-2-220 Net Emissions Increase: For purposes of applying the PSD provisions and 

NAAQS Protection requirements of this Rule, a net emissions increase from a new 

source or modified source (or group of such sources) is the sum of the new 

emissions from the new source(s) and/or the increase in emissions from the modified 

source(s), plus any other creditable contemporaneous emissions increases at the 

facility calculated according to Section 2-2-604, less any other creditable 

contemporaneous emissions decreases at the facility calculated according to Section 

2-2-604.

2-2-221 Offsets: Offsets are any of the following:

221.1 banked emission reduction credits approved in accordance with District 

Regulation 2, Rule 4; or

221.2 banked emission reduction credits from adjacent Districts if the applicant 

demonstrates that the requirements of Clean Air Act Section 173(c)(1) (42 

U.S.C. Section 7503(c)(1)) and Health and Safety Code Section 40709.6 

have been met or do not apply;

that are provided to compensate for cumulative increases in emissions pursuant to 

Section 2-2-302 or 2-2-303.

2-2-222 Pollutant-Specific Basis: A term used to describe a regulatory requirement 

governing multiple pollutants. If a regulatory requirement applies on a pollutantspecific basis, the requirement applies only for the individual pollutant(s) for which a 

source or facility meets the relevant applicability criteria, and does not apply for 

pollutant(s) for which the source or facility does not meet the relevant applicability 

criteria.

2-2-223 PSD Pollutant: Any Regulated NSR Pollutant as defined in EPA’s PSD Regulations 

at 40 C.F.R. Section 52.21(b)(50), except pollutants for which the San Francisco Bay 

Area has been designated as non-attainment of a California or National Ambient Air 

Quality Standard. If a pollutant is subject to both federal and California ambient air 

quality standards, the pollutant shall be treated as a PSD Pollutant for (and only for) 

the ambient air quality standard(s) for which the San Francisco Bay Area has not 

been designated as non-attainment.

2-2-224 PSD Project: A new source as defined in Section 2-1-232, or a modified source as 

defined in Section 2-1-234, or a combination of such new or modified sources that are 

part of a single common project, that meets all of the following criteria:
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224.1 Major PSD Facility: The source(s) are or will be located at a facility that has 

the potential to emit 100 tons or more per year of any PSD pollutant*

(including fugitive emissions) if it is in one of the 28 categories listed in 

Section 169(1) of the Clean Air Act, or 250 tons or more of any PSD 

Pollutant* (not including fugitive emissions) if it is not in a listed category; and

224.2 Significant Increase in Emissions of PSD Pollutant: The new emissions from 

the new source(s) and/or the increase in emissions from the modified 

source(s) calculated according to Section 2-2-604 constitute significant

emissions of any PSD pollutant as defined in Section 2-2-227.1; and

224.3 Significant Net Increase in Emissions of PSD Pollutant: The net emissions 

increase associated with the new or modified source(s), as defined in Section 

2-2-220, constitute significant emissions of any PSD pollutant as defined in 

Section 2-2-227.1.

Any physical change or change in method of operation that takes place at a facility 

that does not meet the Major PSD Facility criteria specified in subsection 224.1, but 

which change would constitute a Major PSD Facility under the criteria in subsection 

224.1 by itself, is a PSD Project.

*Note that for purposes of applying the 100/250 ton-per-year major PSD facility threshold in Section 2-2-

224.1, the term PSD pollutant is defined to exclude GHGs where they are emitted in an amount of less 

than 100,000 tons CO2e per year. Thus, for a facility to satisfy the major PSD facility test in Section 2-2-

224.1 based on its GHG emissions, the GHG emissions (i) must be over 100,000 tons per year CO2e for 

the emissions to constitute a PSD pollutant, and (ii) must be over the 100/250 ton absolute mass 

threshold for the facility to constitute a major emitter of that pollutant. See Section 2-2-223; see also 40 

C.F.R. § 52.21(b)(50)(iv) and 40 C.F.R. § 52.21(b)(49)(iv)&(v).

2-2-225 Reasonably Available Control Technology (RACT): For sources whichthat are to 

continue operating, RACT is the lowest emission limit that can be achieved by the 

specific source by the application of control technology taking into account 

technological feasibility and cost-effectiveness, and the specific design features or 

extent of necessary modifications to the source. For sources which are or will be shutdown, RACT is the lowest emission limit that can be achieved by the application of 

control technology to similar, but not necessarily identical categories of sources, 

taking into account technological feasibility and cost-effectiveness of the application 

of the control technology to the category of sources only and not to the shut-down 

source. (Adopted June 15, 1994) 

2-2-226 Related Sources: Two or more sources where the operation of one is dependent 

upon, supports or affects the operation of the other(s). 

2-2-227 Significant: The term “significant” has the following meanings when used in the 

following contexts:

227.1 For determining whether an increase in emissions of a PSD pollutant is 

“significant” for purposes of the PSD provisions of this Rule, the increase is 

significant:
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1.1 if it exceeds the values specified in the following table, or for a PSD 

pollutant that is not listed in the following table, if it is greater than 

zero; or

1.2 if it is from a source that is or would be located within 10 kilometers 

of a Class I area, and it would have an impact in such Class I area 

equal to or greater than 1 μg/m3(24-hour average).

227.2 For determining whether an increase in emissions is “significant” for purposes 

of the NAAQS Protection Requirement in Section 2-2-308 and the public 

notice requirement in Section 2-2-404, the increase is significant if it exceeds 

the values specified in the following table.

Pollutant

Significant Emissions Rate

kg/yr (ton/yr)

Carbon monoxide 90,500 (100)

Nitrogen oxides 36,200 (40)

Sulfur dioxide 36,200 (40)

Total particulate matter 22,680 (25)

PM10 13,575 (15)

PM2.5* 9050 (10)

VOC* 36,200 (40)

GHGs** 67,875,000** (75,000**)

Lead 530 (0.6)

Fluorides 2720 (3)

Sulfuric Acid Mist 6350 (7)

Hydrogen Sulfide 9050 (10)

Total Reduced Sulfur 9050 (10)

Reduced Sulfur 

Compounds 9050 (10)

Municipal waste combustor 3.2 x 10-3(3.5 x 10-6)
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organics

Municipal waste combustor 

metals 13,575 (15)

Municipal waste combustor 

acid gases 36,200 (40)

Municipal solid waste 

landfill emissions 45,250 (50)

*Pollutants for which the Bay Area is designated as non-attainment of a NAAQS are not subject to the 

PSD requirements in Sections 2-2-304 through 2-2-307 by operation of 40 C.F.R. Section 52.21(i)(2). 

PM2.5 and VOC (as an ozone precursor) are therefore not subject to these PSD requirements as long as 

the Bay Area remains non-attainment for any PM2.5 or ozone NAAQS, respectively.

**Per Section 2-2-214, emissions of GHGs are measured as CO2e for purposes of determining whether an 

emissions increase exceeds this significance threshold. Per Section 2-2-223 and 40 C.F.R. 

Sections 52.21(b)(50)(iv) and 52.21(b)(49)(iv)&(v), increases in GHG emissions of less than 75,000 tons 

per year CO2e are excluded from the definition of PSD pollutant and are not subject to the PSD 

requirements of Regulation 2, Rule 2.

2-2-300 STANDARDS

2-2-301 Best Available Control Technology Requirement: An applicant for an authority to 

construct and/or a permit to operate for a new or modified source shall applyrequire

BACT to any new or modified sourcecontrol emissions of District BACT pollutants 

under the following conditions:

301.1 Which results in an emission from a new source or an increase in emissions 

from a modified source of precursor organic compounds (POC), nonprecursor organic compounds (NPOC), nitrogen oxides (NOx), sulfur dioxide 

(SO2), PM10 or carbon monoxide (CO) in excess of 10.0 pounds per highest 

day., or;

301.2 Which will result in a cumulative increase at the facility since December 1, 

1982, in excess of any of the following daily and/or annual amounds:

ANNUAL AVERAGE DAILY

kg/yr (ton/yr) g/day (lb/day)

Beryllium 0.3 (0.0004) 0.9 (0.002)

Mercury 88 (0.1) 240 (0.5)

Fluorides 2720 (3) 7450 (16)

Sulfuric Acid Mist 6350 (7) 17400 (38)

Hydrogen Sulfide 9050 (10) 24800 (55)

Total Reduced Sulfur 9050 (10) 24800 (55)

Reduced Sulfur Compounds 9050 (10) 24800 (55)

(Amended June 15, 1994)

2-2-302 Offset Requirements, Precursor Organic Compounds and Nitrogen Oxides, 

NSR: Except as provided by Sections 2-2-313 or 421, before the APCO may issue an 

authority to construct or a permit to operate for a new or modified source at a facility 

which emits 50 tons per year or more or will be permitted to emit 50 tons per year or 

more, on a pollutant specific basis, of precursor organic compounds or nitrogen 

oxides, , federally enforceable emission offsets shall be provided, for the emission 
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from the new or modified source and any pre-existing cumulative increase, minus any 

onsite contemporaneous emission reduction credits determined in accordance with 

Section 2-2-605, at a 1.15 to 1.0 ratio. Before the APCO may issue an authority to 

construct or a permit to operate for a new or modified source at a facility which emits 

or will be permitted to emit more than 15 tons per year but less than 50 tons per year 

or more, on a pollutant specific basis, of precursor organic compounds or nitrogen 

oxides, emission offsets shall be provided, by the District at a 1.0 to 1.0 ratio for the 

emission from the new or modified source and any pre-existing cumulative increase, 

minus any onsite contemporaneous emission reduction credits determined in 

accordance with Section 2-2-605, from the Small Facility Banking Account in the 

District's Emissions Bank in accordance with the provisions of Regulation 2-4-414. 

The APCO shall determine the total facility emissions, on a pollutant specific basis, by 

adding the emissions from the proposed new or modified source(s) to the most recent 

District Emissions Inventory, adjusted for any errors and adjusted upward for any 

permitted levels of emissions not currently being emitted. 

302.1 Emission reduction credits of nitrogen oxides may be used to offset increased 

emissions of precursor organic compounds at the offset ratio specified above 

in Section 2-2-302. 

302.2 Emission reduction credits of precursor organic compounds may be used to 

offset increased emissions of nitrogen oxides at the offset ratio specified 

above in Section 2-2-302, provided that the PSD requirements of Section 2-2-

304, if applicable, are met. 

(Amended November 20,1991; Amended June 15, 1994) 

301.1 New Source: An authority to construct and/or permit to operate for a new

source shall require BACT to control emissions of a District BACT pollutant if 

the source will have the potential to emit that pollutant in an amount of 10.0 or 

more pounds on any day as defined in Regulation 2-1-217;

301.2 Modified Source: An authority to construct and/or permit to operate for a 

modified source shall require BACT to control emissions of each District 

BACT pollutant for which the source is “modified” as defined in Section 2-1-

234 for which:

2.1 the source, after the modification, will have the potential to emit that

pollutant in an amount of 10.0 or more pounds on any day as defined 

in Regulation 2-1-217; and

2.2 the modification will result in an increase in emissions of that 

pollutant above baseline levels calculated pursuant to Section 2-2-

604.

The BACT requirements in this Section shall apply on a pollutant-specific basis. 

2-2-302 Offset Requirements, Precursor Organic Compounds and Nitrogen Oxides:

Before the APCO may issue an authority to construct or permit to operate for a new 

or modified source at any facility that will have the potential to emit more than 10 tons 

per year of NOx or POC after the new or modified source is constructed (including 

emissions from cargo carriers per Section 2-2-610), offsets must be provided 

according to the following requirements:

302.1 If the facility will have the potential to emit more than 10 tons per year but less 

than 35 tons per year of NOx or POC after the new or modified source is 

constructed, offsets must be provided at a 1:1 ratio for any un-offset 
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cumulative increase in emissions at the facility and any related sources since 

the baseline date determined in accordance with Section 2-2-608.

1.1 The APCO shall provide any required offsets from the Small Facility 

Banking Account in the District’s Emissions Bank in accordance with 

Section 2-4-414, unless the Small Facility Banking Account is 

exhausted or the applicant (or any entity controlling, controlled by, or 

under common control with the applicant) owns or controls offsets. 

1.2 If the Small Facility Banking Account is exhausted, or if the applicant 

owns or controls offsets, the applicant shall provide any required 

offsets.

1.3 A permit limit for which offsets have been provided from the Small 

Facility Banking account may not be higher than the source’s 

maximum physical/design capacity to emit air pollutants, and may not 

be higher than is reasonably necessary to satisfy the applicant’s 

operational requirements (including sufficient flexibility to allow for 

future changes in operational requirements).

302.2 If the facility will have the potential to emit 35 tons per year or more of NOx or

POC after the new or modified source is constructed, the applicant shall:

2.1 Reimburse the Small Facility Banking Account for any cumulative 

increase for which offsets were previously provided from the Small 

Facility Banking Account; and

2.2 Provide federally-enforceable offsets at a 1.15:1 ratio for any unoffset cumulative increase in emissions at the facility and any related 

sources since the baseline date determined in accordance with 

Section 2-2-608.

302.3 An applicant may reimburse the Small Facility Banking Account under 

subsection 302.2.1 by reducing the cumulative increase associated with the 

permitting action(s) for which the District provided the Small Facility Banking 

Account credits. To do so, the applicant must request a lower emissions limit 

in a permit for which the Small Facility Banking Account credits were 

provided. Upon approval by the APCO, the amount by which the applicant 

must reimburse the Small Facility Banking Account shall be reduced by the 

difference between the old permit limit and the new permit limit. 

302.4 The offset requirements in this Section shall be applied on a pollutant-specific 

basis.

2-2-303 Offset RequirementRequirements, PM2.5, PM10 and Sulfur Dioxide, NSR: Except 

as provided by Sections 2-2-313 or 421, before: Before the APCO may issue an 

authority to construct or a permit to operate for a new orof modified source, of at a 

facility that will have the potential to emit 100 tons per year or more of PM2.5, PM10 or 

sulfur dioxide after the new or modified source is constructed (including emissions 

from cargo carriers per Section 2-2-610), the applicant shall provide offsets according 

to the following requirements:
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303.1 If the un-offset cumulative increase in emissions of PM2.5, PM10 or sulfur 

dioxide located at a Major Facility, which will result in a cumulative increase 

minus any contemporaneous emission reduction credits at the facility, for that 

pollutant, in excess of 1.0 ton per year and any related sources since April 5, 

1991, emission offsets shall be provided, for the emission from the new or 

modified source and any pre-existing cumulative increase, minus any onsite 

contemporaneous emission reduction creditsbaseline date determined in 

accordance with Section 2-2-605, at 608 exceeds 1 ton per year, the 

applicant shall provide offsets at a 1.0:1.0 ratio or at a ratio, approvedfor the 

un-offset cumulative increase since the baseline date.

303.2 NOx and/or sulfur dioxide offsets may be provided in place of PM10 offsets 

required under subsection 303.1 at offset ratios determined by the APCO, to 

result in a net air quality benefit. Any approval of the use of NOx and/or sulfur 

dioxide offsets under this subsection shall be based on an analysis specific to 

the individual facility for which the determination is made, which shall include 

adequate modeling; and any such approval shall be granted only after public 

notice and an opportunity for public comment and with EPA concurrence.

303.3 Any NOx and/or sulfur dioxide offsets provided in place of PM10 offsets must 

be provided in addition to any NOx and/or sulfur dioxide offsets required 

independently as a result of the source’s NOx and/or sulfur dioxide 

emissions.

303.4 The offset requirements in this Section shall be applied on a pollutant-specific 

basis.

2-2-304 PSD BACT Requirement: An authority to construct for a PSD Project shall require

federal PSD Best Available Control Technology as defined in Section 169(3) of the

federal Clean Air Act (“federal PSD BACT”) for each PSD pollutant for which the net 

increase in emissions from the PSD Project will be significant as defined in Section 2-

2-227.1. If federal PSD BACT is required for a pollutant under this Section, the 

authority to construct shall require federal PSD BACT for each new or modified 

source for which there will be an increase in emissions of that pollutant by any 

amount, calculated in accordance with subsection 2-2-303.1.Section 2-2-604. The 

APCO shall impose federal PSD BACT in an authority to construct subject to this 

Section according to and in satisfaction of all of the requirements applicable to federal 

PSD BACT under 40 C.F.R. Section 52.21(j), including any applicable exemptions 

from that Section’s requirements under 40 C.F.R. Section 52.21(i).

303.1 Emission reduction credits of nitrogen oxides and/or sulfur dioxide may be 

used to offset increased emissions of PM10 at offset ratios deemed 

appropriate by the APCO. 

A facility which emits less than 100 tons of any pollutant, subject to this section, may 

voluntarily provide emission offsets for all, or any portion, of their cumulative increase, 

at the ratio required above. 

(Amended November 20, 1991; Amended June 15, 1994) 

2-2-304 PSD Requirement: In accordance with the Prevention of Significant Deterioration 

provisions of 40 CFR 51.166 of the Code of Federal Regulations, the APCO shall not 

issue an authority to construct or a permit to operate to a: 

304.1 New major facility which will emit 100 tons per year or more, if, it is one of the 

twenty eight (28) PSD source categories listed in Section 169(1) of the 

federal Clean Air Act, or 250 tons per year or more for an unlisted category, 
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of any pollutant subject to regulation under the federal Clean Air Act unless 

the applicant demonstrates by modeling in accordance with Section 2-2-414 

to the satisfaction of the APCO that such emissions will not interfere with the 

attainment or maintenance of the sulfur dioxide or nitrogen dioxide NAAQS at 

the point of maximum ground level impact and will not cause an exceedance 

of a sulfur dioxide or a nitrogen dioxide PSD increment. 

304.2 Major modification of a major facility if the cumulative increase, from the PSD 

Baseline Date, minus the contemporaneous emission reduction credits at the 

facility are in excess of 40 tons per year of sulfur dioxide or nitrogen oxide 

unless the applicant demonstrates by modeling in accordance with Section 2-

2-414 to the satisfaction of the APCO that such emissions will not interfere 

with the attainment or maintenance of the sulfur dioxide or nitrogen dioxide 

NAAQS at the point of maximum ground level impact and will not cause an 

exceedance of a sulfur dioxide or a nitrogen dioxide PSD increment. 

304.3 Major modification of a major facility if the cumulative increase, from the PSD 

Baseline Date, minus the contemporaneous emission reduction credits at the 

facility are in excess of 15 tons per year of PM10 unless the applicant 

demonstrates by modeling in accordance with Section 2-2-414 to the 

satisfaction of the APCO that such emission will not interfere with the 

attainment or maintenance of the PM10 federal ambient air quality standard 

at the point of maximum ground level impact and will not cause an 

exceedance of a particulate matter PSD increment. 

(Amended June 15, 1994) 

2-2-305 Carbon Monoxide Modeling Requirement, PSD: In accordance with the Prevention 

of Significant Deterioration provisions of 40 CFR 51.166 of the Code of Federal 

Regulations, the APCO shall not issue an authority to construct or a permit to operate 

for: 

305.1 A major facility which will emit 100 tons per year or more, if it is one of the 

twenty eight (28) PSD source categories listed in Section 169(1) of the 

federal Clean Air Act, or 250 tons per year or more for an unlisted category, 

of any pollutant subject to regulation under the federal Clean Air Act, unless 

the applicant demonstrates by modeling in accordance with Section 2-2-414, 

to the satisfaction of the APCO, that the net air quality impact of the 

cumulative increase of emissions of CO from the new or modified facility and 

all contemporaneous emission reduction credits to be provided by the 

applicant will not interfere with the attainment or maintenance of the CO 

NAAQS in the District or any contiguous air basin, or 

1.1 The cumulative increase minus the contemporaneous emission 

reduction credits from the facility are less than or equal to zero. 

305.2 A major modification of a major facility with an increase in excess of 100 tons 

per year of carbon monoxide, unless the applicant demonstrates by modeling 

in accordance with Section 2-2-414, to the satisfaction of the APCO, that the 

net air quality impact of the cumulative increase of emissions of CO from the 

new or modified facility and all contemporaneous emission reduction credits 

to be provided by the applicant will not interfere with the attainment or 

maintenance of the CO NAAQS in the District or any contiguous air basin, or 

2.1 The cumulative increase minus the contemporaneous emission 

reduction credits from the facility are less than or equal to zero. 

(Amended June 15, 1994) 

2-2-306 Non-Criteria Pollutant Analysis, PSD: In accordance with the Prevention of 

Significant Deterioration provisions of 40 CFR 51.166 of the Code of Federal 

Regulations, unless the applicant has performed all analysis required by Sections 2-2-

414 and 417 for the applicable pollutants, the APCO shall not issue an authority to 

construct or a permit to operate to a new or modified facility if the new or modified 

facility will emit greater than 100 tons per year of carbon monoxide, particulate matter, 

sulfur dioxide, precursor organic compounds or nitrogen oxides, and the cumulative 
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increases, minus the contemporaneous emission reduction credits from the facility 

occurring since December 1, 1982, pursuant to authorities to construct and permits to 

operate, are in excess of the annual average amounts specified in subsection 2-2-

301.2. (Amended June 15, 1994) 

2-2-307 Denial, Failure of all Facilities to be in Compliance: The APCO shall deny2-2-305PSD 

Source Impact Analysis Requirement: The APCO shall not issue an authority to 

construct for a PSD Project unless the APCO determines, for each PSD pollutant for 

which the net increase in emissions from the PSD Project will be significant as 

defined in Section 2-2-227.1, that the net increase in emissions from the PSD Project

will not cause or contribute to a violation of (i) any applicable ambient air quality 

standard for such pollutant or (ii) any applicable PSD increment for such pollutant, as 

set forth in 40 C.F.R. Section 52.21(c). The APCO shall make such determination in 

accordance with the following procedures:

305.1 Pre-application Air Quality Analysis: The applicant shall prepare and submit 

an analysis of ambient air quality in the area that the PSD Project would 

affect for each PSD pollutant for which the net increase in emissions allowed 

by the authority to construct will be significant. The applicant’s analysis shall 

be prepared according to and shall satisfy all of the requirements applicable 

to air quality analyses for federal PSD permitting under 40 C.F.R. Section 

52.21(m)(1), including any applicable exemptions from that Section’s 

requirements under 40 C.F.R. Section 52.21(i).

305.2 PSD Source Impact Analysis: The applicant shall demonstrate, for each PSD 

pollutant for which the net increase in emissions allowed by the authority to 

construct will be significant, that the net increase in emissions of such 

pollutant will not cause or contribute to a violation of (i) any applicable 

California or National Ambient Air Quality Standard for such pollutant or (ii) 

any applicable PSD increment for such pollutant, as set forth in 40 C.F.R. 

Section 52.21(c). The applicant’s analysis and demonstration shall be 

prepared according to and shall satisfy all of the requirements applicable to 

PSD source impact analyses for federal PSD permitting under 40 C.F.R. 

Section 52.21(k), including any applicable exemptions from that Section’s 

requirements under 40 C.F.R. Section 52.21(i).

305.3 Air Quality Models: All estimates of ambient concentrations required under 

this Section shall be based on applicable air quality models, databases, and 

other requirements specified in Appendix W of Part 51 of Title 40 of the Code 

of Federal Regulations (Guideline on Air Quality Models). Where an air 

quality model specified in Appendix W is inappropriate, the model may be 

modified or another model substituted upon written approval by the APCO 

after public notice and opportunity for public comment under the procedures 

set forth in Section 2-2-404. Where modeling is conducted solely to evaluate 

compliance with a California air quality standard, any APCO-approved model 

may be used.

305.4 APCO Determination: The APCO shall determine, based on the applicant’s 

submissions and any other relevant information, whether any net emissions 

increases of PSD pollutants that the authority to construct will authorize in 

significant amounts would cause or contribute to a violation of (i) any 

applicable California or National Ambient Air Quality Standard for such 
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pollutant or (ii) any applicable PSD increment for such pollutant, as set forth 

in 40 C.F.R. Section 52.21(c), for any PSD pollutant. In making this 

determination, the APCO shall use the same procedures and be subject to 

the same requirements as are applicable to the Administrator for issuing 

federal PSD permitting under 40 C.F.R. Section 52.21(k), including any 

applicable exemptions that Section’s requirements under 40 C.F.R. Section 

52.21(i).

2-2-306 PSD Additional Impacts Analysis Requirements: Before issuing an authority to 

construct for a PSD Project, the APCO shall conduct the following additional impact 

analyses:

306.1 Visibility, Soils & Vegetation Impact Analysis: The applicant shall prepare and 

submit an analysis of the impairment to visibility, soils and vegetation that 

would occur as a result of the PSD Project and any commercial, residential, 

industrial, and other growth associated with the PSD Project. The applicant’s 

analysis shall be prepared according to and shall satisfy all of the 

requirements applicable to air quality analyses for federal PSD permitting 

under 40 C.F.R. Section 52.21(o)(1), including any applicable exemptions 

that Section’s requirements under 40 C.F.R. Section 52.21(i). The analysis 

need not address impacts on vegetation having no significant commercial or 

recreational value. 

306.2 Associated Growth Analysis: The applicant shall prepare and submit an 

analysis of the air quality impact projected for the area as a result of general 

commercial, residential, industrial, and other growth associated with the PSD 

Project. The applicant’s analysis shall be prepared according to and shall 

satisfy all of the requirements applicable to air quality analyses for federal 

PSD permitting under 40 C.F.R. Section 52.21(o)(2), including any applicable 

exemptions that Section’s requirements under 40 C.F.R. Section 52.21(i).

306.3 APCO Review: The APCO shall review the applicant’s additional impact 

analyses to ensure that they are complete and accurately reflect the 

circumstances associated with the PSD Project.

2-2-307 Consideration of Class I Area Impacts: If, within 30 days after receiving notice 

under Section 2-2-404 of a preliminary decision to issue an authority to construct for 

(i) a new major facility or a major modification of a major facility for NOx, VOC, SO2 or 

PM2.5 or (ii) a PSD Project, the Federal Land Manager with responsibility for 

administering any Class I Area provides the APCO with a demonstration that 

emissions from the project would have an adverse impact on the air quality-related 

values of the Class I Area (including visibility), the APCO shall promptly review and 

consider such demonstration. If the APCO concurs with such demonstration, or if the 

APCO concludes based on an independent review of the analysis submitted under 

Section 401.4 that the project will have such adverse impact, the APCO shall, after 

consultation with the Federal Land Manager and the applicant, deny the application 

for an authority to construct. If the APCO finds that such demonstration does not 

establish to the APCO’s satisfaction that the project would have such adverse impact, 

the APCO shall explain its decision (or give notice of where such explanation can be 

obtained) in any subsequent notice of a public hearing held under Section 2-2-404.7.
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2-2-308 NAAQS Protection Requirement: The APCO shall not issue an authority to 

construct for a new or modified source that will result in a significant net increase in 

emissions of any pollutant for which a National Ambient Air Quality Standard has 

been established unless the APCO determines, based upon a demonstration 

submitted by the applicant, that such increase will not cause or contribute to an 

exceedance of any National Ambient Air Quality Standard for that pollutant. Such 

demonstration shall be made using the procedures for PSD Air Quality Impact 

Analyses set forth in subsections 2-2-305.1 through 2-2-305.4. Such demonstration 

shall not be required for ozone. A PSD Air Quality Impact Analysis and determination 

for a new or modified source that satisfies the requirements of Section 2-2-305 shall 

satisfy the requirements of this Section for all pollutants included in such analysis.

2-2-309 Compliance Certification: The APCO shall not issue an authority to construct for a 

new major facility or a major modification of an existing major facility unless the 

applicant provides a list, certified under penalty of perjury, of all major facilities within 

the state of California owned or operated by the applicant or by any entity controlling, 

controlled by, or under common control with the applicant and demonstrates by 

certifying under penalty of perjury that they are either in compliance, or on a schedule 

of compliance, with all applicable state and federal emission limitations and 

standards. The APCO may request the applicant to provide any technical information 

used by the applicant to certify compliance. (Amended June 15, 

1994) 

2-2-308 Class I Area Requirements, PSD: A facility for which the cumulative increases 

minus the contemporaneous emission reduction credits occurring since the PSD 

Baseline Date, are greater than zero, and which would construct in a Class I Area or 

within 10 kilometers (6.2 miles) of a Class I Area, and would have an impact on such 

area equal to or greater than 1 microgram per cubic meter, shall use BACT on the 

new or modified facility and shall not cause or contribute to the exceedance of any 

NAAQS at the point of maximum ground level impact or any PSD increment set forth 

in Section 2-2-232, and shall perform all analyses required by Sections 2-2-414 and 

417. (Amended June 15, 1994)

2-2-308 Class I Area Requirements, PSD: A facility for which the cumulative increases 

minus the contemporaneous emission reduction credits occurring since the PSD 

Baseline Date, are greater than zero, and which would construct in a Class I Area or 

within 10 kilometers (6.2 miles) of a Class I Area, and would have an impact on such 

area equal to or greater than 1 microgram per cubic meter, shall use BACT on the 

new or modified facility and shall not cause or contribute to the exceedance of any 

NAAQS at the point of maximum ground level impact or any PSD increment set forth 

in Section 2-2-232, and shall perform all analyses required by Sections 2-2-414 and 

417. (Amended June 15, 1994)

2-2-309 Denial for Air Quality Related Values, PSD: The APCO shall deny any permit 

application subject to the requirements of Section 2-2-308 where it has been 

demonstrated by the Federal Land Manager that the permit would authorize 

emissions which would have an adverse impact on the air-quality-related values 

(including visibility) of a Class I Area, provided that such demonstration is completed 

prior to the termination of the public comment period and that the APCO concurs with 

that demonstration. 

2-2-310 Denial, Failure to Use BACT: The APCO shall deny an authority to construct if the 

APCO finds that the application is subject to Section 2-2-301 and, after notification in 

writing, the applicant has not provided a control device or technique meeting the 

requirements defined in Section 2-2-206. 

2-2-311 Denial, Failure to Provide Offsets: The APCO shall deny an authority to construct if 

the APCO finds that the application is subject to Sections 2-2-302 or 303 and, after 
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notification in writing, the applicant has not provided the required offsets to mitigate 

the emissions increase.

2-2-312 Denial, Failure to Meet Permit Conditions: The APCO shall deny a permit to 

operate for a source if, after providing written notification to the applicant, if the 

equipment and an opportunity to remedy any violation, the source is operating in 

violation of any condition specified in the authority to construct, or if any other source

used to provide offsetsemission reduction credits for the projectsource that is owned 

or operated by the applicant is operating in violation of any permit condition limiting 

emissions such that the required offsetsemission reduction credits are not actually 

being provided.

2-2-313 Offset Requirements, Replacement Sources of Precursor Organic Compounds 

and Nitrogen Oxides, NSR: Before the APCO may issue an authority to construct or 

a permit to operate for a replacement source at a facility which has actual emissions 

of 50 tons per year or more, on a pollutant specific basis, of precursor organic 

compounds or nitrogen oxides, offset requirements shall be met: 1.) either in 

accordance with the requirements of Section 2-2-302, or 2.) in accordance with the 

provisions of Section 2-2-608, provided no increase in the permitted level of the 

replaced source, adjusted for BACT, is authorized. 

(Adopted June 15, 1994)

2-2-314 Federal New Source Review Applicability: The requirements of 40 CFR 51.165 are 

incorporated, by reference, as part of this rule. (Adopted June 15, 1994) 

2-2-315 Federal Prevention of Significant Deterioration Applicability: The requirements 

of 40 CFR 51.166 are incorporated, by reference as part of this rule. 

(Adopted June 15, 1994) 

2-2-316 No Net Increase Status Report: The APCO shall publish in conjunction with the 

triennial update of the Clean Air Plan (CAP), a report demonstrating that the District's 

permitting program complies with the no net increase requirements of Section 40919 

(b) of the Health and Safety Code. This report shall demonstrate that 

sufficient offsets have been provided, as required by Section 2-2-302, 

for all permits issued during the previous three year CAP period. This 

report shall be forwarded to the California Air Resources Board, 

Stationary Source Division for approval. (Adopted June 15, 1994)

2-2-400 ADMINISTRATIVE REQUIREMENTS

2-2-401 Application: In additionAn application for an authority to construct under this Rule 

shall conform to the requirements of District Regulation 2-1-402, applications for 

authorities to construct facilities subject to Rule 2 and shall include all of the following:

401.1 ForA detailed description of the proposed new facilities, which will emitsource(s)

or modification(s) for which the authority to construct is sought, including at a 

minimum (i) a description of the nature, location, design capacity, and typical 

operating schedule of the source(s) or modification(s), including 

specifications and drawings showing its design and plant layout, and (ii) a 

detailed schedule for construction of the source(s) or modification(s). 

401.2 All information necessary for the APCO to determine whether the application 

satisfies the requirements of this Rule, including but not limited to (i) a 

demonstration of how the application satisfies applicable BACT standards 
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under Sections 2-2-301 and 2-2-304, and (ii) the PSD analyses and 

demonstrations required under Sections 2-2-305 and 2-2-306, if applicable.

401.3 CEQA-related information required under Section 2-1-426; and for a new 

major facility, and for a modification whichto a major facility that will increase 

emissions by more than 100 tons per year of carbon monoxide, 40 tons per 

year of precursor organic compounds, nitrogen oxides, or sulfur dioxide, or 

4010 tons per year of either precursor organic compounds or nitrogen 

oxidesPM2.5, an analysis of alternative sites, sizes, production processes, and 

environmental control techniques for such proposed source which 

demonstratethat demonstrates that benefits of the proposed source 

significantly outweigh the environmental and social costs imposed as a result 

of its location, construction or modification.

401.2 The information required by the lists and criteria adopted pursuant to Section 

65940 of the California Government code that are in effect on the date the 

application is filed. 

401.3 CEQA-related information which satisfies the requirements of Regulation 2-1-

426. 

(Amended November 20, 1991; Amended June 15, 1991) 

2-2-402 Complete Application: The APCO shall determine whether an application for an 

authority to construct is complete not later than 30 days following receipt of the 

application, or after a longer time period agreed upon by both the applicant and the 

APCO. If the APCO determines that the application is not complete, the applicant 

shall be notified in writing of the decision, specifying the information is required. Upon 

receipt of any resubmittal of the application a new 30 day period to determine 

completeness shall begin. The application shall be deemed complete on the date of 

receipt of all information required for completeness. Upon determination that the 

application is complete, the APCO shall notify the applicant in writing. If applicable, 

such written notification shall include the District's determination that its evaluation of 

the application will be covered by the specific procedures, fixed standards and 

objective measurements set forth in Volume II of the District’s Manual of Procedures 

and that the District's evaluation of that permit application will be classified as 

ministerial and will accordingly be exempt from CEQA review. Thereafter only 

information regarding offsets, or information to clarify, correct or otherwise 

supplement the information submitted in the application may be requested. 

401.4 If the application is for (i) a new major facility or a major modification of major 

facility for NOx, VOC, SO2 or PM2.5 or (ii) a PSD Project, and the project will 

be located in or within 100 km of a Class I area, the application shall include 

an analysis of potential impacts to air quality related values (including 

visibility) in such Class I area for review and consideration by the Federal 

Land Manager of such Class I area. 

401.5 Any other information requested by the APCO.

2-2-402 Notice to EPA and Federal Land Manager of Receipt of Permit Applications:

When the APCO receives a complete application for an Authority to Construct for a 

PSD Project, the APCO shall transmit a copy of the complete application to EPA

Region IX. If the APCO receives a complete application for (i) a new major facility or 

a major modification of a major facility for NOx, VOC, SO2 or PM2.5 or (ii) a PSD 

Project, and the project is located within 100 km of any Class I Area(s), the APCO 

shall transmit a copy of the complete application to the Federal Land Manager(s) with 

responsibility for any such Class I Area(s) within 30 days of receipt and at least 60 

days prior to holding any public hearing on such application, and shall include the 
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applicant’s analysis of the anticipated impacts on visibility in such Class I area(s). In 

addition, the APCO shall also notify such Federal Land Manager(s) if the APCO 

receives any advance notification of any such application.

2-2-403 Authority to Construct: Within 60 days following the acceptance of, 

Preliminary Decision: If an application as complete, whichfor an 

Authority to Construct is not subject to the publication and public notice 

and comment requirements of Section 2-2-405, or with the consent of the 

applicant, such longer period as may be agreed upon, the APCO shall make a 

decision as to whether an authority to construct shall be approved or denied. Written 

notice of the APCO's decision shall be provide to the applicant and to any person who 

request such specific notification. 

403.1 Notwithstanding this 60-day limit, the APCO shall not take final action for any 

project for which an Environmental Impact Report or a Negative Declaration 

has been prepared until a Final EIR for that project has been certified, or a 

Negative Declaration for that project has been approved, and the APCO has 

considered the information in that Final EIR or Negative Declaration. For 

cases in which the 60-day time period has elapsed, the APCO shall take final 

action on the application within 30 days after the certification of the Final EIR 

or approval of the Negative Declaration. This subsection shall not apply to 

any project which is exempt from the District's CEQA requirements pursuant 

to Regulation 2-1-311 or 2-1-312. (Amended November 20, 1991) 

2-2-404 Authority to Construct, Preliminary Decision: Within 90 days following the 

acceptance of an application as complete, which is subject to the requirements of 

Section 2-2-405, or longer period necessary to satisfy the requirements of Section 2-

2-414, providing that any fees required in accordance with Regulation 3-318 are paid, 

or with the consent of the applicant, such longer period as may be agreed upon, the 

APCO shall make a preliminary decision as to whether an authority to construct shall 

be approved, or denied. Final action on this application will be taken in accordance 

with the requirements of Section 2-2-407. The APCO shall make such preliminary 

decision within 90 days following the acceptance of the application as complete,

provided that any fees required in accordance with Regulation 3 are paid; or within a 

longer time period if necessary to complete any PSD impact analyses required under 

Sections 2-2-305 and 2-2-306, if necessary to complete any CEQA analyses if the 

District is the CEQA Lead Agency, or if consented to by the applicant.

404.1 When the District is the CEQA Lead Agency for a project, the 90-day limit for 

issuing a preliminary decision shall be suspended until the draft EIR or 

Negative Declaration is available for the APCO's consideration and public 

review. (Amended November 20, 1991) 

2-2-405404 Publication of Notice and Opportunity for Public Comment: If the application is 

for (i) a new major facility or a major modification of an existing major facility or 

requires a PSD analysis, the APCO shall within 10 days of the notification of the 

applicant, cause to have published in atleast one newspaper of general circulation 

within the District, a prominent, (ii) any new facility, or a modification of any existing 

facility, that will involve an increase in emissions of CO, NOx, SO2, PM10, PM2.5, VOC, 

or lead, calculated in accordance with Section 2-2-604, in an amount that is 

significant as defined in Section 2-2-227.2, or (iii) a PSD Project, the APCO shall 

provide notice of the preliminary decision made under Section 2-2-403 according to 

the following procedures:
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404.1 The APCO shall publish a notice stating the preliminary decision of the 

APCO, and inviting written public comment on it. The notice shall state the 

location of the information available pursuant to Section 2-2-406,405, the 

procedures and invitingdeadlines for submitting written public comment for 

comments, and the opportunity for requesting a 30 day period followingpublic 

hearing pursuant to subsection 404.7.

404.2 If the application is for a PSD Project, the notice shall also state the degree of 

PSD increment consumed if a PSD increment consumption analysis has 

been conducted.

404.3 The APCO shall publish the notice prominently on the date of publication. 

Written notice of the preliminary decision shall be sent to the ARBDistrict’s 

internet website in a manner that will provide the public with routine and ready 

access; and if the application is for a new major facility or a major 

modification of an existing major facility, or for a PSD Project, the regional 

office ofAPCO shall also publish the notice prominently in at least one 

newspaper of general circulation within the District.

404.4. The APCO shall transmit a copy of the notice to ARB; EPA andRegion IX;

adjacent air districts. A copy of this notice shall be provided to; the chief 

executive(s) of the city and county where the facility is located; the California 

State Lands Commission; any Indian Governing Body whose lands may be 

affected by the new or modified source(s) that is the subject of the notice; any 

person who requests such specific notification in writing. During this; and, if 

the application is for a PSD Project located within 100 km of any Class I 

Area(s), the Federal Land Manager(s) with responsibility for any such Class I 

Area(s).

404.5 If the District is the CEQA Lead Agency with respect to the application, the 

APCO shall also ensure that the applicable CEQA notice and comment 

requirements are followed with respect to any CEQA document. 

404.6 The APCO shall provide a period of at least 30 days following publication of 

the notice required under this Section for members of the public to submit 

written comments, and may extend the public comment period, which may be 

extended by the APCO, the for good cause.

404.7 The APCO may elect to hold a public meeting to receive verbal comment 

from the public. The written notice shall contain the degree of PSD increment 

consumed. written and verbal comments from the public during the public 

comment period if the APCO finds that a public meeting is warranted and 

would substantially enhance public participation in the decision-making 

process. If the APCO elects to hold a public meeting, the APCO shall provide 

at least 30 days public notice of such meeting in the same manner as is 

required for the notice of preliminary decision, and the public comment period 

under Section 2-2-404.6 shall be extended, at a minimum, until the end of the 

public meeting.

2-2-405.1 In addition to the above requirements, for any application for which the 

District is a Lead Agency under CEQA, the public notice required pursuant to 

this Section 2-2-405 shall provide public notice of the availability of a Draft 
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EIR, a Negative Declaration or a Notice of Exemption, as applicable. 

2-2-406 Public Inspection: The APCO shall If an application for an Authority to Construct is 

subject to the public notice and comment requirements of Section 2-2-404, the APCO 

shall make available for public inspection, at District headquarters, the information 

submitted by the applicant, and if applicable the APCO's analysis, and thethe APCO’s

preliminary decision to grant or deny the authority to construct including any proposed 

conditions, including and the reasons therefore., and any other relevant information 

on which the APCO’s preliminary decision is based. Any such information shall also 

be transmitted, upon request, to ARB and EPA Region IX. In making information 

available for public inspection, the APCO shall consider any claims by the applicant 

regarding the confidentiality of trade secrets, as designated by the applicant prior to 

completion of the application, shall be consideredsubmission, in accordance with 

Section 6254.7 of the California Government Code. Furthermore, all such information 

shall be transmitted, upon the date of publication, to the ARB and the regional office 

of the EPA if the application is subject to the requirements of Section 2-2-405. 

2-2-407406 Authority to Construct, Final Action: If thean application is for a new major facility 

or a major modification of an existing major facility or requires a PSD analysisan 

Authority to Construct is subject to the public notice and comment requirements of 

Section 2-2-404, the APCO shall within 180 days following the acceptance of the 

application as complete, or a longer time period agreed upon, consider all public 

comments received and shall take final action on the application after considering all 

public comments. Written notice of the : (i) within 60 days after the close of the public 

comment period, or within 30 days after final approval of a CEQA Negative 

Declaration or Environmental Impact Report for the project (if applicable), whichever 

is later; and (ii) if the application is for a PSD Project, no later than one year after 

receipt of the complete application (unless a longer period is necessary and is 

consented to by the applicant). At the time of such final action, the APCO shall: 

406.1 Prepare and make publicly available a written response to any public 

comments received explaining how the APCO has considered such 

comments in making a final decision shall be provided; and

406.2 Provide written notice of the final decision to the applicant, the ARB and the,

EPA Region IX, any person who submitted comments during the public 

comment period or requested written notice of the final action, and, if the 

District is a Lead Agency under CEQA, to any person who has commented 

on a Draft EIR. The final action will also be published in at least one 

newspaper of general circulation within the District, and the notice and 

supporting documentation shall be available for public inspection at District 

headquarters. in accordance with all applicable CEQA public notice and 

comment requirements.

407.1 Notwithstanding the requirement of this Section 2-2-407 that the APCO shall 

act within 180 days after the application is accepted as complete, the APCO 

shall not take final action on the application for any project for which an 

Environmental Impact Report or a Negative Declaration has been prepared 

pursuant to the requirements of CEQA until a Final EIR for that project has 

been certified and the APCO has considered the information contained in that 

Final EIR, or a Negative Declaration for that project has been approved. If the 

specified 180 day period has elapsed prior to the certification of the Final EIR 

or the approval of the Negative Declaration, the APCO shall take final action 
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on the application within 30 days after the certification of the Final EIR or 

approval of the Negative Declaration. 

2-2-408 Appeal: The following actions of the APCO may be appealed: 

408.1 In accordance with Section 42302 of the Health and Safety Code, an 

applicant for an authority to construct which has been denied may request, 

within 10 days after receipt of the written notice to deny, the Hearing Board of 

the District to hold a hearing on whether or not the authority to construct was 

properly denied. 

408.2 In accordance with Section 42302.1 of the Health and Safety Code, within 10 

days of any decision of the APCO pertaining to the issuance of an authority to 

construct, any aggrieved person who, in person or through a representative, 

appeared, submitted written testimony, or otherwise participated in the action 

before the District may request the Hearing Board of the District to hold a 

public hearing to determine whether the authority to construct was properly 

issued or for an order modifying or reversing that decision. Such appeals 

shall be filed in writing and contain a summary of the issues to be raised. The 

Hearing Board shall consider the appeal at a public hearing within 30 days of 

the filing of the appeal. The Hearing Board may reverse or modify the 

decision of the APCO if it determines that the decision was erroneous. 

(Amended November 20, 1991) 

2-2-409 Requirements, Permit to Operate: As a condition for the issuance of a Permit to 

Operate, the APCO shall require that the new or modified source and the sources 

which provide offsets be operated in the manner assumed in making the analysis 

required to determine compliance with this Regulation. 

409.1 The permit to operate of any source used to provide offsets shall be 

conditioned to insure that the emission reductions will be enforceable and 

shall continue for the reasonably expected life of the proposed source. If 

offsets are obtained from a source for which there is no permit to operate, 

either a permit shall be obtained or a written contract shall be required 

between the applicant and the owner or operator of such source, which 

contract, by its terms, shall be enforceable by the APCO to ensure that such 

reductions will continue for the duration of the life of the proposed source.

2-2-410 2-2-407 Issuance, Permit to Operate: The APCO shall issueBefore issuing a permit 

to operate for a source subject to the requirements of this Rule if it is determined, the 

APCO shall ensure that any offsets required, as a condition of anthe following 

requirements have been met:

407.1 The APCO shall ensure that all conditions specified in the authority to 

construct have been and are being complied with, or amendmentin the case 

of conditions with a future compliance date, that such conditions are 

reasonably expected to abe complied with by the applicable compliance date.

407.2 If the permit to operate,is for a source for which the applicant complied with 

the offset provisions of Sections 2-2-302 or 2-2-303 with emission reduction 

credits generated after the application date:

2.1 The APCO shall ensure that such emission reduction credits took 

effect or will commencetake effect no later than the initial operation of 

the new source or withinsource (or, for a source that is a replacement

unit, as defined in 40 C.F.R. Section 51.165(a)(1)(xxi), that will 

replace an existing source in whole or in part, with respect to 

emission reduction credits being generated by the shutdown of the 

existing source being replaced, no later than 90 days after initial 

operation of the modified source,replacement unit); and
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2.2 The APCO shall ensure that the offsetssuch emission reduction 

credits shall be maintained throughout the operation of the new or 

modified source which is the beneficiary of the offsets. Further, the 

APCO shall determine that all conditions specified in the authority to 

construct have been or will be likely complied with by any dates 

specified. Where a new or modified source is, in whole or in part, a 

replacement for an existing source on the same property, the APCO 

may allow a maximum of 90 days as a start-up period for 

simultaneous operation of the existing source and the new source or 

replacement. source.

2-2-411408 Permit to Operate, Final Action: The APCO shall take final action to approve, 

approve with conditions, or disapprove a permit to operate a source subject to this 

Rule within 6090 days after start-up of the new or modified source. However, failure to

act within the 60 day period, unless thesuch time period is extended with the written 

concurrence of the applicant, shall be deemed to be a denial of the permit. Such 

denial may be appealed to the Hearing Board in accordance with the provisions of 

Regulation 2-1-410. (Amended November 20, 1991) .

2-2-412409 Source Obligation, Relaxation of Enforceable Conditions: At such time as the 

applicability of any requirement of this Rule would be triggered by an existing source 

or facility, solely by virtue of a relaxation of any enforceable limitation on the capacity 

of the source or facility to emit a pollutant, then the requirements of this Rule shall 

apply to the source or facility in the same way as they would apply to a new or 

modified source or facility otherwise subject to this Rule.

2-2-413 Public Notice, Schools: Prior to making a Preliminary Decision in accordance with 

Section 2-2-404 on an application for an authority to construct a new or modified 

source which emits any substance into the ambient air which is on the list required to 

be prepared pursuant to subdivision (a) of Section 25532 and Section 44321 of the 

Health and Safety Code and which is located within 1000 feet from the outer 

boundary of a school, the APCO shall: 

413.1 Prepare a public notice in which the proposed new or modified source, and 

the proposed emissions, are fully described. 

413.2 Distribute the notice, prepared in accordance with subsection 2-2-413.1, at 

the expense of the applicant, to the parents of children in any school within 

one-quarter mile of the source and to each address within a radius of 750 

feet from the outer property line of the proposed new or modified source. This 

notice shall be distributed at least 30 days prior to the date final action on the 

application is to be taken by the APCO. The APCO shall review and consider 

all comments received during the 30 days after the notice is distributed, and 

shall include written responses to the comments in the permit application file 

prior to taking final action on the application. 

2-2-414 PSD Air Quality Analysis: An application for an authority to construct a facility

subject to the requirements of Sections 2-2-304, 305, 306 or 308 shall contain the 

following: 

414.1 A modeling analysis, as defined in Section 2-2-222, demonstrating to the 

satisfaction of the APCO the air quality impacts of the new or modified facility 

(including impacts of non-criteria pollutants if required under Section 2-2-

306). The analysis shall include meteorological and topographic data 

necessary to estimate such impact. If the maximum air quality impacts of the 

new or modified facility do not exceed the significance levels for air quality 

impacts, as defined in Section 2-2-233, no further analysis under this Section 

will be required unless the facility is subject to the Class I area requirements 
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of Section 2-2-308. 

414.2 A demonstration by modeling to the satisfaction of the APCO that the 

allowable emission increases from the new or modified facility, in conjunction 

with all other applicable emissions, would not cause or contribute to a 

violation of an air quality standard or an exceedance of any applicable PSD 

increment. A new or modified facility will be considered to cause or contribute 

to a violation of an air quality standard when the increase in emissions would 

cause a significant air quality impact at any locality that does not or would not

meet the applicable air quality standard. 

414.3 For determining whether the emission increases from the new or modified 

facility would cause or contribute to an air quality standard violation or an 

exceedance of a PSD increment, an analysis of the existing air quality in the 

impact area of the new or modified facility that includes one year of 

continuous ambient air quality monitoring data. The continuous air quality 

monitoring data shall have been gathered over a period of at least one year 

preceding the receipt of a complete application. The APCO may approve a 

shorter period (but not less than four months) provided that the period of 

monitoring includes the time frame when maximum concentrations are 

expected. The APCO may approve modeling in lieu of ambient air quality 

monitoring for pollutants for which no air quality standard exists. 

414.4 For pollutants for which PSD increments have been established, a PSD 

increment consumption analysis that includes: 

4.1 Establishment of the baseline area(s) affected by the new and modified 

facility, and the corresponding baseline date(s); 

4.2 An analysis of the air quality impact of all increment-consuming 

emissions within the impact area of the new or modified facility, and 

those increment-consuming emissions outside the impact area that 

may have a significant air quality impact within the impact area; and, 

4.3 An analysis of the air quality impact, and the nature and extent of any 

or all general commercial, residential, industrial, and other growth 

which has occurred since the baseline date in the impact area of the 

new or modified facility. 

2-2-415 Notice to EPA and Federal Land Manager: On the date of a complete application 

subject to Section 2-2-308, the APCO shall provide a copy of the complete application 

to the EPA, the Federal Land Manager for the affected Class I Area, and to the 

federal official charged with direct responsibility for management of any lands within 

the Class I area. The APCO shall also send a copy of the preliminary decision and the 

APCO's analysis to the above agencies. 

2-2-416 Report, PSD Increment Consumption: The District shall conduct an annual review 

of the increment status for each attainment pollutant, and the APCO, upon request of 

the Board of Directors, shall provide a report on the consumption of PSD increments 

which have occurred during the period of interest. 

2-2-417 Visibility, Soils, and Vegetation Analysis: An application for a permit subject to the 

requirements of Section 2-2-414 shall contain an analysis of the impairment to 

visibility, soils and vegetation that would occur as a result of the new or modified 

source and the general commercial, residential, industrial and other growth 

associated with the source or modification. The applicant need not provide an 

analysis of the impact on vegetation if it has no significant commercial or recreational 

value. 

2-2-418 PSD Analysis Stack Heights: For the purposes of modeling, stack heights beyond 

what is required by good engineering practices shall not be allowed. This requirement

should not be perceived to be a limit on the actual constructed height of a stack. The 

method to calculate good engineering stack height is referenced in Section 2-2-602. 

2-2-419410 Permit Conditions: The APCO may requireinclude any permit condition necessary to 

insure compliance with this Rule to be included in an authority to construct or permit 

to operate. This may include that the APCO determines is necessary to ensure 
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compliance with this Rule, including but not limited to conditions controlling the 

operation of the source, of its abatement equipment, or of sources used to provide 

mitigation (offsets). Conditionsgenerate emission reduction credits to comply with 

Sections 2-2-302 or 2-2-303. Such conditions may have a future effective date and 

may be made conditional on the results of source tests, ground level monitors or 

public complaints.

2-2-411 Offset Refunds: The APCO may refund offsets provided for an authority to construct 

or permit to operate, and waive any associated banking fees, under the following 

circumstances:

411.1 Where an applicant has provided offsets in excess of those required for an 

authority to construct or permit to operate, the APCO shall upon request of 

the applicant refund the difference between the amount of offsets provided 

and the amount of offsets required. 

411.2 Whenever a source for which the owner or operator has provided offsets is 

not constructed (or is constructed but never operated), and the authority to 

construct or permit to operate for the source has expired or has been 

surrendered by the applicant, the APCO shall upon request of the applicant 

refund the offsets provided in connect with the authority to construct or permit 

to operate.

2-2-412 Demonstration of NOx and POC Offset Program Equivalence: By March 1 of 

each year, the District shall submit to EPA a demonstration that NOx and POC offsets 

provided for all new and modified sources within the District, less adjustments to 

those offsets for federal purposes occurring between credit generation and use, 

exceed federal offset requirements for new major sources or major modifications at 

major stationary sources. Adjustment to emission reductions for federal purposes will 

be required if any of the following occur between the time the credit is generated and 

the time the credit is used:

412.1 BAAQMD adopts a relevant measure or rule that is required for purposes of 

federal attainment demonstration requirements.

412.2 A relevant rule or measure is approved into the State Implementation Plan 

applicable in the BAAQMD;

412.3 EPA promulgates a relevant final rulemaking for either a New Source 

Performance Standard or a Maximum Achievable Control Technology 

Standard.

The demonstration shall include:

412.4 Emission increases represented by all authorities to construct new major 

facilities and major modifications at major facilities issued during the three 

calendar years preceding the demonstration date;

412.5 A list of all emission reductions used to offset those emission increases;

412.6 The emission baselines that were used to calculate the emission reduction;
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412.7 The source type, size and category that had generated the emission 

reduction credit; 

412.8 All relevant rules that have been adopted or promulgated since the emission 

reduction had occurred.

412.9 Adjustments to emission reduction for federal purposes for all affected 

projects.

412.10 All of the above for as many non-major projects as are needed to 

demonstrate equivalence.

If the analysis fails to make the required demonstration, the District shall provide 

sufficient offsets to make up the difference out of the Small Facility Banking Account. 

If the Small Facility Banking Account does not contain the necessary surplus 

emission reductions, the District shall obtain the necessary surplus emission 

reductions.

2-2-413 No Net Increase Status Report: The APCO shall publish,

in conjunction with the triennial update of the Clean Air Plan 

(CAP), a report demonstrating that the District's permitting 

program complies with the no-net-increase requirements of 

Section 40919(b) of the Health and Safety Code. This report 

shall demonstrate that sufficient offsets have been provided, as 

required by Section 2-2-302, for all permits issued during the 

previous three year CAP period. This report shall be forwarded 

to the California Air Resources Board, Stationary Source 

Division419.1 All emission reduction credits shall be enforceable by 

permit conditions; such permit conditions shall constitute applicable 

requirements of the State Implementation Plan for purposes of Section 113 

and 304 of the Clean Air Act and are enforceable in the same manner as 

other SIP requirements.

(Amended June 15, 1994)

2-2-420 Semiconductor Fabrication Area, Annual BACT and Offset Certification: Upon 

written request by an owner or operator of a Semiconductor Fabrication Area (Fab 

Area), the APCO shall certify which specific pieces of equipment, comprising a Fab 

Area, are being controlled to the current District BACT levels. After the initial BACT 

certification, the facility must reapply in writing at the time of annual permit renewal for 

recertification by the APCO. Thereafter, any piece of equipment within a Fab Area 

that is currently BACT certified may be replaced with a functionally equivalent device, 

without first obtaining an authority to construct from the District provided that:

420.1 , for approval.

2-2-414 BACT Workbook: The APCO has issued a certification in 

writingshall publish and periodically update a BACT Workbook

specifying that the piece of equipment being replaced is being controlled 

to current BACT levels;

420.2 Offsets are supplied in quantities required by Section 2-2-302, to the 

satisfaction of the APCO, by the permittee at the time of annual permit 

renewal for all such equipment replacements;

420.3 The emission limits for the semiconductor fabrication area are reset, to the 

highest levels demonstrated, to the satisfaction of the APCO, for any twelve 

(12) consecutive month period occurring during the last five years; and
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420.4 The APCO is advised in writing of any equipment replacement within 30 days 

of the replacement and provided that no changes in the Fab Area permit 

conditions are required due to the replacement. (Amended June 15, 1994)

2-2-421 Offset Deferral, Annual Permit Renewal: Whenever offsets are required by Section 

2-2-302 or 303, a person has the option to defer providing the offsets until the time of 

the annual permit renewal provided: 

421.1 The facility demonstrates that they have valid Banking Certificates adequate 

to cover their offset obligation. Offsets deferred under the provisions of this 

Section shall be provided by the facility at least 30 days prior to the date of 

annual permit renewal, and 421.2 The facility does not have a cumulative 

increase greater than 15 tons per year for the pollutant or pollutants subject

to the offset requirement(s). (Adopted June 15, 1994) 

2-2-500 MONITORING AND RECORDS

2-2-501 PSD Pre-Construction Ambient Air Monitoring: An applicant subject to the 

requirements of subsection 2-2-414.3 shall meet the following requirements: 

501.1 Prior to commencing pre-construction ambient air monitoring, receive written 

approval from the APCO regarding the selection and operation of monitoring 

stations. 

501.2 Operate the monitoring stations in accordance with the provisions of 

Appendix B to 40 CFR 58. The APCO may approve the use of District air 

monitoring data as part of the PSD air quality analysis required by Section 2-

2-414. 

2-2-502 PSD Post-Construction Monitoring: The owner or operator of a facility subject to 

the requirements of Section 2-2-414 shall, after construction of the facility or 

modification, conduct such ambient air quality monitoring as the APCO specifies in 

the authority to construct or the permit to operate. The monitoring shall determine the 

effect emissions from the facility or modification may have, or are having, on air 

quality in the area. All air monitoring shall be performed in accordance to the Manual 

of Procedures, Volume VI and 40 CFR Appendix B.

2-2-600 MANUAL OF PROCEDURES 

2-2-601 Ambient Air Quality Monitoring: Any person subject to the ambient air quality 

monitoring requirements of this Rule shall use the methods prescribed in the Manual 

of Procedures, Volume VI. 

2-2-602 Good Engineering Practice (GEP) Stack Height: The method for calculating GEP 

stack height is contained in the FEDERAL REGISTER: Volume 50, Number 130; 

Monday, July 18, 1985. 

2-2-603 PSD Air Quality Evaluation Procedure: As a guideline to preparing an air quality 

impact analysis the applicant is encouraged to review "Guidelines for Air Quality 

Maintenance Planning and Analysis," Volume 10 (Revised): Procedures for 

Evaluating Air Quality Impact of New Stationary Sources, EPA-450/4-77-001. 

2-2-604 Emission Increase Calculation Procedures, New or Modified Sources: The 

APCO shall determine the annual emission increase, expressed as tons per year, 

from: 

604.1 A new source based on the maximum emitting potential of the new source or 

the maximumfor commonly permitted emission level of the new source, 

approved by the APCO, subject to federally enforceable limiting conditions. 

604.2 A modified source by subtracting either the annual emission rate for which 

offsets have been provided or the actual annual emission for the highest 

twelve (12) consecutive month period occurring during the last five years 

immediately preceding the application date, in compliance with all District 

rules, regulations and permit conditions and which was representative of 

normal operations, from the new maximum permitted emission level of the 
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modified source, approved by the APCO, subject to federal enforceable 

limiting conditions.

(Amended June 15, 1994) 

2-2-605 Emission Calculation Procedures, Emission Reduction Credits: The APCO shall 

determine the emission reduction credits which qualify as offsets from a:

605.1 Contemporaneous shutdown of a source, as a condition of the authority to 

construct, by determining the annual emission rate for which offsets have 

been provided, adjusted to reflect any reductions required by any pending 

District retrofit regulations, or by determining the actual annual emission from 

the source, averaged over the highest twelve (12) consecutive month period 

occurring during the last five years immediately preceding the application 

date, in compliance with all District rules, regulations and permit conditions 

and which was representative of normal operation, adjusted to reflect any 

reductions required by District regulations or by any pending district law, rule 

or regulations.

605.2 Source to be controlled or, curtailed, by subtracting the new maximum 

permitted emission level of the source, approved by the APCO, subject to 

federally enforceable limiting conditions, from either the actual annual 

emission from the source, averaged over the highest level twelve (12) 

consecutive month period occurring during the last five years immediately 

preceding the application date, in compliance with all District rules, 

regulations and permit conditions and which was representative of normal 

operation, adjusted to reflect any reductions required by any pending District 

retrofit regulation or from the annual emission rate, for which offsets have 

been provided, adjusted to reflect any reductions required by any pending 

district retrofit regulation. (Amended June 15,1994)

2-2-606 Emission Calculation Procedures, Offsets: Except as provided by the offset 

deferral provision of Section 2-2-421, before the APCO may issue an authority to 

construct for a new or modified source, offsets shall be provided, as required by 

Sections 2-2-302, 303 or 313 by the applicant from credits in the District's Emissions 

Bank and/or from contemporaneous emission reduction credits which qualify in 

accordance with Sections 2-2-201 and 605, or by the District from the small facility 

banking account for the amounts calculated as follows:

606.1 For precursor organic compounds (POC) and nitrogen oxides (NOx) for the 

total of all emission increases as sources. BACT will be determined in 

Section 2-2-604 plus any pre-existing cumulative increase from April 5, 1991, 

multiplied by the offset ratio required by Section 2-2-302. 

606.2 If required by Section 2-2-303, for particulate matter, PM10, and sulfur 

dioxide for the total of all emission increases as determined in Section 2-2-

604 multiplied by the appropriate offset ratio specified in Section 2-2-303.

Emission offsets provided in excess of those required, which meet the requirements 

of a bankable reduction per Regulation 2-4-301 or 302 and bankable credit period 

defined in Regulation 2-4-203, may qualify to be banked. Banking fees shall be 

waived for this transaction. (Amended June 15, 1994)

2-2-607 Emission Calculation Procedures, Emission Reduction Credits for Mobile 

Sources: Emission reduction credits for mobile sources shall be determined by the 

Mobile Source Emission Reduction Credits procedures published February 1994 (or 

subsequent revisions) by the California Air Resources Board or other District 

approved procedures in the Manual of Procedures. (Adopted 

June 15, 1994) 

2-2-608 Alternative Emission Calculation Procedures, Replacement Sources: As an 

alternative to the calculation procedures of subsection 2-2-605 an applicant may elect 

to have a replacement source conditioned by maximum production capacity, 

throughput, output, or other rating of the replaced source provided the following 

provisions are satisfied:

608.1 The replacement source is functionally equivalent to the replaced source prior 
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to replacement and is located within the same facility; and

608.2 There is no increase in maximum production capacity, throughput, output, or 

other rating of the replaced source; and

608.3 Each replacement source shall be equipped with Best Available Control 

Technology (BACT) as required by Section 2-2-301;

A conditioned emission level established in accordance with this section shall not be thefor a 

source on a case-by-case basis for, using the workbook as a guidance document, as 

the most effective control device or technique or most stringent emission limitation 

that meets the requirements of Section 2-2-202.

2-2-500 MONITORING AND RECORDS

2-2-501 Post-Construction Monitoring: The APCO may require as a condition in an 

authority to construct that the owner or operator of a facility for which the authority to 

construct is issued must conduct such ambient air quality monitoring as the APCO 

determines is necessary to determine the effect that emissions from the facility may 

have, or are having, on air quality in the area.

2-2-600 MANUAL OF PROCEDURES

2-2-601 Ambient Air Quality Monitoring: Ambient air quality monitoring required pursuant to 

this Rule shall be conducted in accordance with the methods prescribed in the 

Manual of Procedures, Volume VI., and 40 C.F.R. Part 58, Appendix B.

2-2-602 Good Engineering Practice (GEP) Stack Height: Stack heights beyond what is 

consistent with good engineering practices shall not be allowed for purposes of air 

quality modeling undertaken as part of any air quality analysis prepared in connection 

with an application for an authority to construct as required by Sections 2-2-305 

through 2-2-308. This requirement does not limit the actual height of a stack, as long 

as good engineering practice stack heights are used in any such modeling analyses. 

Good engineering practice stack height shall be determined according to 40 C.F.R. 

Section 52.100(ii) and EPA’s Guideline for Determining Good Engineering Practice 

Stack Height, EPA Publication No. EPA-450/4-80-023R (June 1985). 

2-2-603 Baseline Emissions Calculation Procedures: The following methodology shall be 

used to determine a source’s baseline emissions for purposes of calculating an 

emissions increase or decrease from a source under Sections 2-2-604.2, 2-2-605.1, 

and 2-2-606.3:

603.1 Determine Baseline Period Ending Date: The date on which the baseline 

period ends is determined as follows:

1.1 For determining the amount of an emissions increase from a new or 

modified source, the baseline period ends on the date on which the 

application for authority to construct/permit to operate the new or 

modified source is determined to be complete.

1.2 For determining the amount of a contemporaneous emissions 

increase under Section 2-2-220 for a physical change or change in 

the method of operation of a source that was not a modification of the 
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source, the baseline period ends on the date the change was first 

implemented at the source.

1.3 For determining the amount of a contemporaneous onsite emission 

reduction credit or a contemporaneous emissions decrease under 

Section 2-2-220, the baseline period ends on the date on which the 

emission reduction credit or an becomes enforceable.

1.4 For determining the amount of an emission reduction credit for which 

a banking certificate is sought under Regulation 2, Rule 4, the 

baseline period ends the date on which the banking application is 

determined to be complete.

603.2 Determine Baseline Period: The baseline period is determined as follows:

2.1 For all pollutants other than greenhouse gases, the baseline period is 

the three-year period immediately preceding the baseline period 

ending date established under subsection 603.1.

2.2. For greenhouse gases, the baseline period is determined as follows:

2.2.1 For a new source, the baseline period is a period with zero

throughput and emissions. For such sources, baseline 

emissions and adjusted baseline emissions are zero for all 

purposes under Section 2-2-603.

2.2.2 For an existing source that first operated less than 24 

months before the date on which the application for authority 

to construct/permit to operate is determined to be complete, 

the baseline period is a period with maximum potential 

throughput and emissions. For such sources, baseline 

emissions and adjusted baseline emissions are the source’s 

pre-existing potential to emit for all purposes under Section 

2-2-603.

2.2.3 For a modification to an existing electric utility steam 

generating unit as defined in 40 C.F.R. Section 51.166(b)(30) 

that has operated for 24 months or more prior to the date of 

application, the baseline period is any period of 24 

consecutive months selected by the applicant within the 5-

year period immediately preceding the baseline period 

ending date established under subsection 603.1, or other 

such time period that the APCO determines is more 

representative of normal source operation. For evaluating 

emissions from multiple sources, the same 24-month 

baseline period shall be used for all sources.

2.2.4 For a modification to any existing source other than an 

electric utility steam generating unit as defined in 40 C.F.R. 

Section 51.166(b)(30) that has operated for 24 months or 

more prior to the date of application, the baseline period is 

any period of 24 consecutive months selected by the 
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applicant within the 10-year period immediately preceding 

baseline period ending date established under subsection 

603.1. For evaluating emissions from multiple sources, the 

same 24-month baseline period shall be used for all sources.

603.3 Determine Baseline Throughput: Baseline throughput is the lesser of: (i) the 

actual average annual throughput during the baseline period; or (ii) the 

average permitted annual throughput during the baseline period, if limited by 

permit condition. If the applicant does not have sufficient verifiable records of 

the source’s operation to substantiate its throughput during any portion(s) of 

the baseline period, the applicant is not entitled to credit for throughput during 

any such portion(s). Throughput shall be based on the source’s operational 

parameter that correlates most closely to the source’s emissions. 

603.4 Determine Baseline Emissions: Baseline emissions are the actual average 

annual emissions during the baseline period (excluding any emissions that 

exceed any regulatory or permit limits). If the applicant does not have 

sufficient verifiable records of the source’s operation to substantiate the 

emission rate during any portion(s) of the baseline period, the applicant is not 

entitled to credit for emissions during any such portion(s).

603.5 Determine Baseline Emissions Rate: The baseline emission rate is the 

emission rate per unit of throughput during the baseline period, calculated by 

dividing the source’s baseline emissions by its baseline throughput.

603.6 Determine Adjusted Baseline Emissions Rate: The adjusted baseline 

emission rate shall be determined by adjusting the baseline emission 

baseline unless all rate downward, if necessary, to reflect the most stringent 

of RACT, BARCT, and applicable calculation procedures offederal and 

District rules and regulations in effect or contained in the most recently 

adopted Clean Air Plan; except that for purposes of determining whether a 

source or group of sources constitutes a PSD Project under Section 2-2-224, 

the adjusted baseline emission rate shall not be adjusted downward to a 

greater extent than required under the provisions of 40 C.F.R. Sections

51.166(b)(47)(i)(b) and 51.166(b)(47)(ii)(b) & (c).

603.7 Determine Adjusted Baseline Emissions: The adjusted baseline emissions is 

the adjusted baseline emissions rate multiplied by the baseline throughput

(except where otherwise specified under sections 2-2-603.2.2.1 or 2-2-

603.2.2.2). 

2-2-604 Emission Increase/Decrease Calculation Procedures, New Sources and 

Changes at Existing Sources: The amount of any emissions increase (or decrease) 

associated with a new source, or with a physical change, change in the method of 

operation, change in throughput or production, or other similar change at an existing 

source, shall be calculated according to the following procedures:

604.1 New Source: The emissions increase associated with a new source is the

source’s potential to emit.

604.2 Change to Existing Source: The emissions increase (or decrease) associated 

with a physical change, change in the method of operation, change in 
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throughput or production, or other similar change at an existing source

(including a permanent shutdown of the source) shall be calculated as the 

difference between: (i) the source’s potential to emit after the change; and (ii) 

the source’s adjusted baseline emissions before the change, calculated in 

accordance with Section 2-2-603.

2-2-605 Emission Reduction Credit Calculation Procedures: The amount of emission 

reduction credits associated with a physical change, change in method of operation, 

change in throughput or production, or other similar change at a source shall be 

calculated according to the following procedures:

605.1 Non-Fully-Offset Source: For a source that is not fully offset as defined in 

Section 2-2-213, the amount of emission reduction credits is the difference 

between: (i) the source’s adjusted baseline emissions before the change 

calculated pursuant to Section 2-2-605 of this Rule and 603; and (ii) the 

source’s potential to emit after the change. 

605.2 Fully-Offset Source: For a source that is fully offset as defined in Section 2-2-

213, the amount of emission reduction credits is the difference between: (i) 

the source’s potential to emit before the change, adjusted downward, if 

necessary, to reflect the most stringent of RACT, BARCT, and applicable

federal and District rules and regulations in effect or contained in the most 

recently adopted Clean Air Plan; and (ii) the source’s potential to emit after 

the change.

To qualify as emission reduction credits, the emission reductions associated with any

such change: (i) must be enforceable through permit conditions; through 

relinquishment of the source’s permit; through physical removal of the source such 

that reinstallation would require a new permit under Regulation 2; or in the case of 

source shutdown where no permit is required for the source being shut down, through 

an alternative legally-enforceable mechanism; and (ii) must be real, permanent, 

quantifiable, and in excess of any reductions required by applicable regulatory 

requirements. Emissions that were offset with credits from the Small Facility Banking 

Account cannot be used to generate emission reduction credits. 

2-2-606 Potential-to-Emit (PTE) Increase Calculation Procedures for Purposes of 

Determining Cumulative Increase: For purposes of calculating cumulative increase 

under Section 2-2-607, the increase in a source’s potential to emit associated with an 

authority to construct and/or permit to operate for the source shall be calculated 

according to the following procedures:

606.1 New Source: For a new source, the increase in potential to emit is the 

source’s full potential to emit. 

606.2 Modified Source – Offsets Previously Provided: For a modified source, if

offsets have previously been provided for the source’s emissions, then the

increase in potential to emit associated with the modification is the difference 

between:

2.1 the source’s potential to emit after the modification; and
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2.2 the source’s potential to emit before the modification, adjusted 

downward, if necessary, to reflect the most stringent of RACT, 

BARCT, and applicable federal and District rules and regulations in 

effect or contained in the most recently adopted Clean Air Plan

606.3 Modified Source – Offsets Not Yet Provided: For a modified source, if offsets 

have not previously been provided for the source’s emissions, then the 

increase in potential to emit associated with the modification is the difference 

between:

3.1 the source’s potential to emit after the modification; and 

3.2 the source’s adjusted baseline emissions before the modification 

calculated in accordance with Section 2-2-603.

For purposes of calculating the cumulative increase associated with a source, the 

source’s emissions shall include emissions from cargo carriers (other than motor 

vehicles) associated with the source as specified in Section 2-2-610.

2-2-607 Cumulative Increase Calculation Procedures: The cumulative increase in 

emissions associated with an authority to construct and/or permit to operate for a 

source shall be calculated as:

607.1 Project Emissions Increase: the increase in potential to emit associated with 

the authority to construct/permit to operate determined in accordance with 

Section 2-2-606; minus

607.2 Contemporaneous Onsite Emission Reduction Credits: any 

contemporaneous onsite emission reduction credits at the facility calculated 

in accordance with Section 2-2-605 that are credited to the authority to 

construct/permit to operate.

The cumulative increase associated with an authority to construct/permit to operate 

issued in the past shall be determined using the increase in potential to emit and 

contemporaneous onsite emissions reductions credits calculated at the time of 

issuance of the authority to construct/permit to operate. Emission reduction credits

may not be double-counted (e.g., an emission reduction credit may not be applied to 

the cumulative increase calculation for more than one authority to construct/permit to 

operate).

2-2-608 Facility Un-Offset Cumulative Increase Calculation Procedures: For purposes of 

applying the emission offset provisions of Sections 2-2-302 and 2-2-303, a facility’s

un-offset cumulative increase in emissions since the baseline date shall be calculated 

using the following procedures:

608.1 Project Cumulative Increase: The cumulative increase from the project being 

permitted shall be determined in accordance with Section 2-2-607. 

608.2 Prior Un-Offset Cumulative Increase: For each previous authority to 

construct/permit to operate issued for the facility, and for any related source 

as defined in Section 2-2-226, after the cumulative increase baseline date as 

specified in Section 2-2-209 (but excluding any authority to construct/permit 

to operate issued because a source lost its permit exemption per Section 2-1-
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424 and any authority to construct/permit to operate for a source that has 

been permanently removed from service), the un-offset cumulative increase 

shall be determined by:

2.1 Calculating the cumulative increase associated with each previous 

authority to construct/permit to operate issued for the facility, and for 

any related source as defined in Section 2-2-226, determined in 

accordance with Sections 2-2-607; and 

2.2 Subtracting any offsets provided in connection with the authority to 

construct/permit to operate (including any offsets provided from the 

District’s Small Facility Banking Account).

608.3 Facility Un-Offset Cumulative Increase: The facility’s un-offset cumulative 

increase shall be determined by adding (i) the project cumulative increase 

calculated according to Section 2-2-608.1 and (ii) the un-offset cumulative 

increase from each previous authority to construct/permit to operate issued 

for the facility, and for any related source as defined in Section 2-2-226, after 

the cumulative increase baseline date as specified in Section 2-2-209 (but 

excluding any authority to construct/permit to operate issued because a 

source lost its permit exemption per Section 2-1-424 and any authority to 

construct/permit to operate for a source that has been permanently removed 

from service) calculated according to Section 2-2-608.2. Offsets shall be 

provided for the facility’s un-offset cumulative increase multiplied by the 

applicable offset ratio specified in Section 2-2-302 and 2-2-303.

2-2-609 Official Record of Cumulative Increases and Offsets: The APCO may establish 

and maintain a database or other accounting document to record the cumulative 

increase (including project cumulative increase and associated emission reduction 

credits) and offsets associated with each authority to construct/permit to operate 

issued for a facility. In calculating the un-offset cumulative increase associated with a 

previous authority to construct/permit to operate under Section 2-2-608.2, the APCO 

may rely on the data specified in such document as conclusive, unless the APCO has 

information that indicates that some other data is more accurate. Records of 

cumulative increase and offsets shall be updated as necessary to ensure that they 

are current and accurate. 

2-2-610 Facility Emissions Calculation Procedures, Cargo Carriers: For purposes of 

applying the offset requirements of Sections 2-2-302 and 2-2-303, a facility’s potential 

to emit and cumulative increase shall be calculated including emissions from cargo 

carriers (other than motor vehicles) associated with the sources at the facility. When 

applying these offset requirements, facilities that include cargo loading or unloading 

from cargo carriers other than motor vehicles shall include the cargo carriers as part 

of the source that receives or loads the cargo. Accordingly, all emissions from such 

cargo carriers while operating in the District, or within California Coastal Waters up to 

11 nautical miles (12.66 statute miles) from the Golden Gate Bridge (and any 

additional areas of California Coastal Waters adjacent to the District if cargo carrier 

emissions in such areas would have a substantial impact on air quality within the 

District), shall be included as part of the source’s emissions. Emissions from cargo 

carriers shall not be included for purposes of applying any other provisions of this 

Regulation 2 , including the BACT and PSD requirements.
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2-2-611 Emission Calculation Procedures, Fugitive Emissions:

Any fugitive emissions from a source shall be included in calculating 

the source’s emissions for all purposes under this Rule 4 are followed. 

(Adopted June 15, 1994)

; except that for purposes of determining whether a facility’s emissions exceed the 100 ton per 

year threshold in Section 2-2-217 (for a “Major Facility”) and Section 2-2-224.1 (the 

first element in the definition of “PSD Project”), fugitive emissions shall be included 

only if the facility is in one of the 28 categories listed in Section 169(1) of the Clean Air 

Act.