2001 - 1

(Adopted October 15, 1993)(Amended December 7, 1995)

(Amended February 14, 1997)(Amended May 11, 2001)(Amended January 7, 2005)

(Amended May 6, 2005)(Amended December 4, 2015)

RULE 2001. APPLICABILITY

(a) Purpose

This rule specifies criteria for inclusion in RECLAIM for new and existing 

facilities. It also specifies requirements for sources electing to enter RECLAIM 

and identifies provisions in District rules and regulations that do not apply to 

RECLAIM sources.

(b) Criteria for Inclusion in RECLAIM

The Executive Officer will maintain a listing of facilities which are subject to 

RECLAIM. The Executive Officer will include facilities, unless otherwise 

exempted pursuant to subdivision (i), if emissions fee data for 1990 or any 

subsequent year filed pursuant to Rule 301 - Permit Fees, shows four or more tons 

per year of NOx or SOx emissions where:

(1) NOx emissions do not include emissions from:

(A) any NOx source which was exempt from permit pursuant to Rule -

219 Equipment Not Requiring A Written Permit Pursuant to 

Regulation II;

(B) any NOx process unit which was rental equipment with a valid 

District Permit to Operate issued to a party other than the facility; 

(C) on-site, off-road mobile sources; or

(D) ships as specified in Rule 2000(c)(62)(C) and (D).

(2) SOx emissions do not include emissions from:

(A) any SOx source which was exempt from permit pursuant to Rule -

219 Equipment Not Requiring A Written Permit Pursuant to 

Regulation II; or

(B) any SOxsource that burned natural gas exclusively, unless the 

emissions are at a facility that elected to enter the program pursuant 

to subparagraph (i)(2)(A); or

(C) any SOx process unit which was rental equipment with a valid 

District Permit to Operate issued to a party other than the facility; 

(D) on-site, off-road mobile sources; or

(E) ships as specified in Rule 2000(c)(62)(C) and (D).
Rule 2001 (Cont.) (Amended December 4, 2015)

2001 - 2

The Executive Officer will not include a facility in RECLAIM if a permit holder 

requests exclusion no later than January 1, 1996 and demonstrates prior to October 

15, 1993 through the addition of control equipment, the possession of a valid 

Permit to Construct for such control equipment, or a Permit to Operate condition 

that the emissions fee data received pursuant to Rule 301, which shows emissions 

equal to or greater than four tons per year of a RECLAIM pollutant, is not 

representative of future emissions.

(c) Amendments to RECLAIM Facility Listing

(1) The Executive Officer will amend the RECLAIM facility listing to add, 

delete, change designation of any facility or make any other necessary 

corrections upon any of the following actions:

(A) Approval by the Executive Officer pursuant to Rule 2007 - Trading 

Requirements, of the permanent transfer or relinquishment of all 

RTCs applicable to a facility.

(B) Approval by the Executive Officer of a change of Facility Permit 

holder or change of facility name.

(C) Approval by the Executive Officer of a Facility Permit for a new 

facility if such new facility would, under RECLAIM, have a 

starting Allocation equal to or greater than four tons per year of a 

RECLAIM pollutant NOx or SOx, unless the facility would be 

exempt pursuant to subdivision (i).

(D) Approval by the Executive Officer of a Facility Permit for an 

existing non-RECLAIM facility, which reports NOx or SOx

emissions pursuant to Rule 301 - Permit Fees, for any year which 

are equal to or greater than four tons, as specified in subdivision 

(b), unless the facility would be exempt pursuant to subdivision 

(i).

(E) Approval by the Executive Officer of the election of a facility to 

enter the RECLAIM program pursuant to subdivision (f).
Rule 2001 (Cont.) (Amended December 4, 2015)

2001 - 3

(F) Upon delegation of authority from EPA to the District for Outer 

Continental Shelf (OCS) sources and inclusion of RECLAIM in 40 

CFR Part 55 pursuant to the consistency update process, such OCS 

sources shall be RECLAIM facilities. The OCS sources' starting 

Allocation for the year of entry and Allocations for the years 2000 

and 2003 and interim years, shall be determined pursuant to Rule 

2002 - Allocations for Oxides of Nitrogen (NOx) and Oxides of 

Sulfur (SOx), except that fuel usage and emissions data reported to 

the Minerals Management Service of the Department of the Interior 

be utilized where emissions data reported pursuant to Rule 301 is 

not available, provided that the permit holder substantiates the 

accuracy of such fuel usage and emissions data. The starting 

Allocation shall be adjusted to reflect the rate of reduction which 

would have been applicable to the facility if it had been in the 

RECLAIM program as of October 15, 1993.

(2) The actions specified in this subdivision shall be effective only upon 

amendment of the Facility Listing.

(d) Cycles

(1) The Executive Officer will assign RECLAIM facilities to one of two 

compliance cycles by computer-generated random assignment which, to 

the extent possible, ensures an even distribution of RTCs. The Facility 

Listing will distinguish between Cycle 1 facilities, which will have a 

compliance year of January 1 to December 31 of each year, and Cycle 2 

facilities, with a compliance year of July 1 to June 30 of each year.

(2) The issue and expiration dates of the RTCs allocated to a facility shall 

coincide with the beginning and ending dates of the facility's compliance 

year.

(3) Within 30 days of October 15, 1993, facilities assigned to Cycle 2 may 

petition the Executive Office or the Hearing Board to change their cycle 

designation. Facilities assigned to Cycle 1 may not petition the Executive 

Officer or Hearing Board to change their cycle designation. Facilities 

entering the RECLAIM program after October 15, 1993 will be assigned 

to the cycle with the greatest amount of time remaining in the compliance 

year.
Rule 2001 (Cont.) (Amended December 4, 2015)

2001 - 4

(e) High Employment/Low Emissions (HILO) Facility Designation

A new facility may, after January 1, 1997 apply to the District for classification as 

a HILO Facility. The Executive Officer will approve the HILO designation upon 

the determination that the emission rate for NOx, SOx, ROC, and PM10 is less 

than or equal to one-half (1/2) of any target specified in the AQMP for emissions 

per full-time manufacturing employee by industry class in the year 2010.

(f) Entry Election

(1) A non-RECLAIM facility may elect to permanently enter the RECLAIM 

program, provided that:

(A) the owner or operator files an Application for Entry;

(B) the facility is not listed as exempt under paragraph (i)(1);

(C) the facility is not operating under an Order for Abatement or in 

violation of any District rule; and

(D) the facility is not subject to a compliance date in an existing rule 

within six months of the date of Application for Entry.

(2) Upon approval of an Application for Entry, the Executive Officer will 

issue a Facility Permit. The facility's starting Allocation for the year of 

entry and Allocations for the years 2000 and 2003 and interim years, shall 

be determined pursuant to Rule 2002 - Allocations for Oxides of Nitrogen 

(NOx) and Oxides of Sulfur (SOx). If necessary, the Allocation shall be 

adjusted to equal the Allocations which would have been applicable to the 

facility if it had been subject to the RECLAIM program as of October 15, 

1993.

(3) Entry into the RECLAIM program will be effective upon issuance of a 

Facility Permit pursuant to Rule 2006 - Permits, and publication of the 

addition of the facility to the Facility Listing.

(g) Exit from RECLAIM

(1) The owner or operator of an electricity generating facility (EGF) may 

submit a plan application (i.e., opt-out plan) subject to plan fees specified 

in Rule 306 to request to opt-out of the NOx RECLAIM program provided 

that the following requirements are met as demonstrated in an opt-out plan 

submitted to the Executive Officer:
Rule 2001 (Cont.) (Amended December 4, 2015)

2001 - 5

(A) At least 99 percent of the EGF’s NOx emissions for the most recent 

three full compliance years are from equipment that meets current 

Best Available Control Technology (BACT) or Best Available 

Retrofit Control Technology (BARCT), for NOx.

(B) The EGF is subject to NOx RECLAIM as of December 4, 2015 or 

has been subject to NOx RECLAIM for at least 10 years as of the 

plan submittal date.

For the purpose of this rule an electricity generating facility (EGF) is a 

NOx RECLAIM facility that generates electricity for distribution in the 

state or local grid system, excluding cogeneration facilities.

(2) If the Executive Officer approves an opt-out plan, based on the criteria 

specified in paragraph (g)(1), then the EGF Facility Permit holder shall 

submit applications to include in its permit and accept permit conditions 

that ensure all of the following apply:

(A) NOx RTCs held by the EGF shall be treated as follows:

(i) For an EGF that does not meet the definition of an existing 

facility, as defined in Rule 2000(c)(35), the quantity of 

NOx RTCs for all compliance years after the date of 

approval of the opt-out plan required to be held by the EGF

pursuant to Rule 2005 – New Source Review for 

RECLAIM shall be surrendered by the facility, retired from 

the market, and used to satisfy any NOx requirements for 

continuing obligations under Regulation XIII – New 

Source Review. If needed to equal this amount, any Nontradable/Non-usable RTCs and any RTCs corresponding to 

the EGF’s contribution to the Regional NSR Holding 

Account may be used for this purpose and, if RTCs from 

the Regional NSR Holding Account are used, these RTCs 

shall be removed from the Regional NSR Holding Account.

(ii) For existing EGFs, that meet the definition of an existing 

facility, as defined in Rule 2000(c)(35), an amount of NOx 

RTCs equivalent to the EGF’s NOx holdings as of 

September 22, 2015 adjusted pursuant to Rule 2002(f)(1) 

for all compliance years after the date of approval of the 

opt-out plan shall be surrendered by the EGF and retired 

from the market. 
Rule 2001 (Cont.) (Amended December 4, 2015)

2001 - 6

(iii) Any NOx RTCs held by an EGF beyond those referred to 

in clauses (i) and (ii) above may be sold, traded, or 

transferred by the facility.

(B) The EGF operator shall ensure that all equipment identified in the 

opt-out plan as meeting BACT or BARCT shall not exceed the 

respective BACT or BARCT levels of emissions or any existing 

permit condition limiting NOx emissions that is lower than BACT 

or BARCT as of the date of the opt-out plan submittal.

(C) Limits on EGF Emissions 

(i) For an EGF that meets the definition of an existing facility

in Rule 2000(c)(35), total facility emissions shall be limited 

to the amount of Compliance Year 2015 RTCs held as of 

September 22, 2015.

(ii) For an EGF that does not meet the definition of an existing 

facility in Rule 2000(c)(35), emissions from each NOx 

source shall be limited to the amount of RTCs required to 

be held for that source pursuant to Rule 2005 as of the date 

of opt-out plan approval. 

(D) The owner or operator of multiple EGFs under common control 

shall have one opportunity to apportion the NOx emission limits 

among its facilities under common control for the purpose of 

meeting the requirements of clause (C)(i) or (C)(ii) as part of its 

opt-out plan as specified in paragraph (g)(1), provided all of the 

facilities opt out concurrently. The apportionment shall be 

described in the opt-out plan that shall be submitted to the 

Executive Officer. Each facility shall not have a limit that exceeds 

the amount of emissions that can be generated by all equipment 

located at the facility. 

(E) Subdivision (j) shall not be applicable to the EGF for any 

equipment installed or modified after the date of approval of the 

opt-out plan, and for other equipment at the earliest practicable date 

but no later than three years after the date of approval of the optout plan except Regulation XIII – New Source Review shall apply 

upon permit issuance.
Rule 2001 (Cont.) (Amended December 4, 2015)

2001 - 7

(F) Notwithstanding the requirements specified in subparagraph 

(g)(2)(E), the EGF operator shall continue to comply with the 

requirements of Rule 2012 and its associated protocols unless the 

Executive Officer has approved an alternative monitoring and 

recordkeeping plan which is sufficient to determine compliance 

with all applicable rules.

(G) Notwithstanding the requirements specified in subparagraph 

(g)(2)(E), for EGFs not subject to Regulation XXX, the EGF’s 

permit shall be re-designated as an “opt-out facility permit” and 

shall remain in effect, subject to annual renewal, unless expired, 

revoked, or modified pursuant to applicable rules. The EGF

operator shall continue to pay RECLAIM permit fees pursuant to 

Rule 301(l).

(3) The Executive Officer shall approve or deny the opt-out plan within 180 

days of receipt of a complete plan, unless the EGF and the Executive 

Officer have mutually agreed upon a longer time period. The Executive 

Officer shall not approve the opt-out plan unless it has been determined 

that the requirements of subparagraphs (g)(1)(A) and (g)(1)(B) are met, 

and the EGF accepts appropriate permit conditions to ensure compliance 

with the requirements of subparagraphs (g)(2)(B) through (H). If, within 

180 days or within the mutually agreed upon time period of receiving a 

complete opt-out plan, the Executive Officer does not take action on the 

plan, the EGF may consider the plan denied. Executive Officer denial of 

an opt-out plan can be appealed to the Hearing Board. The Executive 

Officer shall not re-issue the facility permit removing the EGF from 

RECLAIM unless the EGF surrenders the required amount of RTCs 

pursuant to subparagraph (g)(2)(A). Removal from RECLAIM of an EGF

with an approved opt-out plan is effective upon issuance of a facility 

permit incorporating the conditions specified in paragraph (g)(2).

(4) No facility, on the initial Facility Listing or subsequently admitted to 

RECLAIM, may opt out of the program, unless approved by the Executive 

Officer pursuant to paragraph (g)(3).
Rule 2001 (Cont.) (Amended December 4, 2015)

2001 - 8

(h) Non-RECLAIM Facility Generation of RTCs

Non-RECLAIM facilities may not obtain RTCs due to a shutdown or curtailment 

of operations which occurs after October 15, 1993. ERCs generated by nonRECLAIM facilities may not be converted to RTCs if the ERCs are based on a 

shutdown or curtailment of operations after October 15, 1993.

(i) Exemptions

(1) The following sources, including those that are part of or located on a 

Department of Defense facility, shall not be included in RECLAIM and 

are prohibited from electing to enter RECLAIM:

(A) dry cleaners;

(B) fire fighting facilities;

(C) construction and operation of landfill gas control, processing or 

landfill gas energy recovery facilities;

(D) facilities which have converted all sources to operate on electric 

power prior to October 15, 1993;

(E) police facilities;

(F) public transit;

(G) restaurants;

(H) potable water delivery operations;

(I) facilities located in the Riverside County portions of the Salton Sea 

and Mojave Desert Air Basins, except for a facility that has elected 

to enter the RECLAIM program pursuant to subparagraph 

(i)(2)(M); and

(J) facilities that have permanently ceased operations of all sources 

before January 1, 1994.

(K) The facility was removed from RECLAIM pursuant to paragraph 

(g)(3).

(2) The following sources, including those that are part of or located on a 

Department of Defense facility, shall not be initially included in 

RECLAIM but may enter the program pursuant to subdivision (f):

(A) electric utilities (exemption only for the SOx program);

(B) equipment rental facilities;

(C) facilities possessing solely "various location" permits;

(D) hospitals;
Rule 2001 (Cont.) (Amended December 4, 2015)

2001 - 9

(E) prisons;

(F) publicly owned municipal waste-to-energy facilities;

(G) portions of facilities conducting research operations;

(H) schools or universities;

(I) sewage treatment facilities which are publicly owned and operated 

consistent with an approved regional growth plan;

(J) electric power generating systems owned and operated by the City 

of Burbank, City of Glendale or City of Pasadena or any of their 

successors;

(K) ski resorts;

(L) facilities located on San Clemente Island;

(M) any electric generating facility that has submitted complete permit 

applications for all equipment requiring permits at the facility on 

or after January 1, 2001 may elect to enter the NOx RECLAIM 

program if the facility is located in the Riverside County portions 

of the Salton Sea or Mojave Desert Air Basins;

(N) facilities that are an agricultural source as defined in California 

Health and Safety Code § 39011.5; and

(O) any EGF as defined in paragraph (g)(1), except for an EGF that has 

been removed from NOx RECLAIM, pursuant to paragraph (g)(3). 

(j) Rule Applicability

Facilities operating under the provisions of the RECLAIM program shall be 

required to comply concurrently with all provisions of District rules and 

regulations, except those provisions applicable to NOx emissions under the rules 

listed in Table 1, shall not apply to NOx emissions from NOx RECLAIM 

facilities, and those provisions applicable to SOx emissions of the rules listed in 

Table 2 shall not apply to SOx emissions from SOx RECLAIM facilities after the 

later of the following:

(1) December 31, 1994 for Cycle 1 facilities and June 30, 1995 for Cycle 2 

facilities; or

(2) the date the facility has demonstrated compliance with all monitoring and 

reporting requirements of Rules 2011 or 2012, as applicable.
Rule 2001 (Cont.) (Amended December 4, 2015)

2001 - 10

Notwithstanding the above, NOx and SOx RECLAIM facilities shall not be 

required to comply with those provisions applicable respectively to NOx and SOx 

emissions of the listed District rules in Tables 1 and 2 which have initial 

implementation dates in 1994. The Facility Permit holder shall comply with all 

other provisions of the rules listed in Table 1 and 2 relating to any other pollutant.
Rule 2001 (Cont.) (Amended December 4, 2015)

2001 - 11

Table 1

EXISTING RULES

NOT APPLICABLE TO RECLAIM FACILITIES FOR

REQUIREMENTS PERTAINING TO NOX EMISSIONS

RULE DESCRIPTION

218 Stack Monitoring

429 Start-up & Shutdown Exemption Provisions for NOx

430 Breakdown Provision

474 Fuel Burning Equipment - NOx

476 Steam Generating Equipment

1109 Emis. of NOx Boilers & Proc. Heaters in Petroleum 

Refineries

1110 Emis. from Stationary I. C. Engines (Demo.)

1110.1 Emis. from Stationary I. C. Engines

1110.2 Emis. from Gaseous and Liquid-Fueled I. C. Engines

1112 Emis. of NOx from Cement Kilns

1117 Emis. of NOx from Glass Melting Furnaces

1134 Emis. of NOx from Stationary Gas Turbines

1135 Emis. of NOx from Electric Power Generating Systems

1146 Emis. of NOx from Boilers, Steam Generators, and Proc. 

Heaters

1146.1 Emis. of NOx from Small Boilers, Steam Generators, and 

Proc. Heaters

1159 Nitric Acid Units - Oxides of Nitrogen

Reg. XIII New Source Review
Rule 2001 (Cont.) (Amended December 4, 2015)

2001 - 12

Table 2

EXISTING RULES

NOT APPLICABLE TO RECLAIM FACILITIES FOR

REQUIREMENTS PERTAINING TO SOX EMISSIONS

RULE DESCRIPTION

53 Sulfur Compounds - Concentration - L.A. 

County

53 Sulfur Compounds - Concentration - Orange 

County

53 Sulfur Compounds - Concentration - Riverside 

County

53 Sulfur Compounds - Concentration - San 

Bernardino County

53A Specific Contaminants - San Bernardino 

County

218 Stack Monitoring

430 Breakdown Provisions

407 Liquid and Gaseous Air Contaminants

431.1 Sulfur Content of Gaseous Fuels

431.2 Sulfur Content of Liquid Fuels

431.3 Sulfur Content of Fossil Fuels

468 Sulfur Recovery Units

469 Sulfuric Acid Units

1101 Secondary Lead Smelters/Sulfur Oxides

1105 Fluid Catalytic Cracking Units SOx

1119 Petroleum Coke Calcining Operations - Oxides 

of Sulfur

Reg. XIII New Source Review