MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 1 **RULE 207. REVIEW OF NEW OR MODIFIED SOURCES**
(Adopted 9-1-74; Revised 7-15-76, 7-18-79, 1-30-80, 1-27-82, 12-15-82, 6-15-84, 12-13-84, 2-17-88, 5-18-88, 7-27-88, 9-19-90, 4-21-93, 5-17-9 5 , 3-20-96, 12-18-96, 9-15-99; 12-13- 2000; 6-21-06; 2-21-07; and April 20, 2011.)

**CONTENTS**

**PART 1 GENERAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4**  **1.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4**  **1.2 Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4**  **1.3 Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4**  **1.4 Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6**  **1.5 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6**  **1.6 Permit Denial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7** 
**PART 2 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7**  **2.1 Affected Pollutants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7**  **2.2 Air Basin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8**  **2.3 Air Pollution Control Officer (APCO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8**  **2.4 Air Quality Impact Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8**  **2.5 Air Quality Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8**  **2.6 Air Resources Board (ARB) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9**  **2.7 Ambient Air Quality Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9**  **2.8 Area A Impact Zone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9**  **2.9 Authority to Construct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10**  **2.10 Best Available Control Technology (BACT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10**  **2.11 California Coastal Waters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11**  **2.12 Cargo Carriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11**  **2.13 Chlorofluorocarbon (CFC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11**  **2.14 Class I Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11**  **2.15 Complete Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11**  **2.16 Contiguous Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12**  **2.17 Cost-Effective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12**  **2.18 Designated Areas, A, B, C, D, E, and F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12**  **2.19 District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14**  **2.20 District Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14**  **2.21 Emissions Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14**  **2.22 Emission Reduction Credit (ERC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15**  **2.23 Enforceable Emission Reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15**  **2.24 Exempt Compounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15**  **2.25 Federal Land Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15**  **2.26 Federal Major Modification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15**  **2.27 Federally Enforceable Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 2 **2.28 Fugitive Emission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15**  **2.29 Hydrochlorofluorocarbon (HCFC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16**  **2.30 Hydrofluorocarbon (HFC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16**  **2.31 Major Modification to an Existing Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16**  **2.32 Major Stationary Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16**  **2.33 Modification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16**  **2.34 National Ambient Air Quality Standards (NAAQS) . . . . . . . . . . . . . . . . . . . . . . . . 17**  **2.35 Net Air Quality Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17**  **2.36 Net Emissions Increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18**  **2.37 New Emissions Increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18**  **2.38 New Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18**  **2.39 New Source Review (NSR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19**  **2.40 Nitrogen Oxides (NO x**  **) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2.41 Nonattainment Pollutant . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . . 19 2.42 Offset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . 19 2.43 Permanent Emission Reduction . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . 19 2.44 Permit to Operate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . 19 2.45 Permit Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . 20 2.46 PM (Particulate Matter); Previously Total Suspe**  **nded Particulates (TSP) . . . . . . . . 20 2.48 PM**  **10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . 20 2.49 Pollutant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . 20 2.50 Potential to Emit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . . 20 2.51 Precursor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . 20 2.52 Prevention of Significant Deterioration (PSD) . .**  **. . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2.53 Quantifiable Emission Reduction . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . . . 21 2.54 Real Emission Reduction . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . 21 2.55 Reconstructed Source . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . 21 2.56 Seasonal Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . 22 2.57 Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . 22 2.58 State Ambient Air Quality Standards . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . . . . 22 2.59 State Implementation Plan (SIP) . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . . . . 22 2.60 Stationary Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . 22 2.61 Sulfur Oxides (SO**  **x ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2**  **3 2.62 Surplus Emission Reduction . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . . 23 2.63 Upwind Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . 23 2.64 Volatile Organic Compounds (VOCs) . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . 23 PART 3 GENERAL REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . 24 3.1 Pre-Construction and Post-Construction Air Monit**  **oring . . . . . . . . . . . . . . . . . . . . . 24 3.2 Visibility, Soils, and Vegetation Analysis . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . . . . . . 24 3.3 Ambient Air Quality Standards and Emission Incre**  **ments . . . . . . . . . . . . . . . . . . . . 24 3.4 Mandated Reductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . 24 3.5 Source Shutdowns and Curtailments . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . 25 3.6 Interpollutant Offsets . . . . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . . 25 PART 4 FEDERAL CLEAN AIR ACT REQUIREMENTS . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . 25 4.1 Best Available Control Technology (BACT) Require**  **ments . . . . . . . . . . . . . . . . . . 25 4.2 Offset Requirement, General . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . 26 4.3 Location of Offsets and Offset Ratios . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . . . . 29 4.4 Offsets, Seasonal Sources . . . . . . . . . . . . . . . . . . . . . . .**  **. . . . . . . . . . . . . . . . . . . . . . 31**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 3 **4.5 Protection of Class I Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31**  **PART 5 CALIFORNIA CLEAN AIR ACT (CCAA) REQUIREMENTS . . . . . . . . . . . . . . . . . 32**  **5.1 Parallel Review and Stringency of Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . 32**  **5.2 CCAA Best Available Control Technology (BACT) Re quirements . . . . . . . . . . . . 32**  **5.3 CCAA Offset Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32**  **5.4 CCAA Stationary Source Calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32**  **PART 6 ADMINISTRATIVE REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33**  **6.1 Alternative Siting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33**  **6.2 Complete Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33**  **6.3 Plantwide Applicability Limit (PAL) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33**  **6.4 Proposed Sources in Federal Class I Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34**  **6.5 Preliminary Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34**  **6.6 Air Quality Increment Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34**  **6.7 Review of Air Quality Increment Consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34**  **6.8 Air Quality Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35**  **6.9 Publication and Public Comment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35**  **6.10 Public Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35**  **6.11 Authority to Construct, Final Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35**  **6.12 Requirements, Permit to Operate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36**  **6.13 Issuance, Permit to Operate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36**  **6.14 Regulations in Force will Govern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37** 
**PART 7 CALCULATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37**  **7.1 Determination of the Potential to Emit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37**  **7.2 Historical Emissions from Existing Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37**  **7.3 General Stationary Source Calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37**  **7.4 Increases in Emissions: Calculation Requirement s for BACT and Offsets . . . . . . . 38**  **7.5 Increases in Emissions: Seasonal Source Calcula tions . . . . . . . . . . . . . . . . . . . . . . 39**  **7.6 Calculation Requirements for Emissions Reduction s . . . . . . . . . . . . . . . . . . . . . . . . 39** 
**PART 8 POWER PLANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39**  **8.1 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39**  **8.2 Intent to Participate and Preliminary Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39**  **8.3 Determination of Compliance Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40**  **8.4 Equivalency of AFC for an Authority to Construct . . . . . . . . . . . . . . . . . . . . . . . . . 40**  **8.5 Need for Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40**  **8.6 Preliminary Determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40**  **8.7 Determination of Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41**  **8.8 Permit to Operate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41** 
**PART 9 SOURCE IMPACT ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41**  **9.1 Air Quality Impact Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41**  **9.2 Downwind Concentrations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42**  **9.3 Example Calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42**  **9.4 Air Quality Impact Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42**  **PART 10 FEDERAL ENFORCEABILITY, SIP REVISIONS . . . . . . . . . . . . . . . . . . . . . . . . 43** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 4 **10.1 Increments for Carbon Monoxide, Nitrogen Dioxid e, Hydrogen Sulfide, and Lead** 

**. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43**  **10.2 Subsection 2.5.2 of this Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43**  **10.3 Subsection 2.18.6 of this Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44**  **10.4 Section 2.21 of this Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44**  **10.5 Part 5 of this Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44** 

**PART 1 GENERAL**
**1.1 Purpose This Rule provides for the review of new and modifi**  **ed stationary air pollution sources to meet:**  **requirements for the review of new and modified sta tionary sources (NSR) and for the**  **Prevention of Significant Deterioration (PSD), unde r the provisions of the federal Clean**  **Air Act; and requirements for NSR under the provisions of the Ca**  **lifornia Clean Air Act.**
**The intent of this Rule is to insure that the most stringent requirements of these**  **programs shall be applied. This Rule provides mech anisms by which Authorities to**  **Construct may be granted to such sources without in terfering with the attainment or**  **maintenance of ambient air quality standards.**
**1.2 Applicability This Rule shall apply to all new stationary sources**  **and all modifications to existing stationary sources which, after construction or mod**  **ification, emit or have the potential to emit any affected pollutants, as defined in Sect**  **ion 2.1 herein.**
**1.3 Exemptions 1.3.1 Exemption: Gasoline Storage and Dispensing.**  **Gasoline storage and dispensing equipment subject to District Rules 418 (Transfer o**  **f Gasoline into Stationary Storage Containers) and 1002 (Transfer of Gasoline into Veh**  **icle Fuel Tanks) shall be exempt from the requirements of this Rule.**  **1.3.2 Exemption: The requirements of Sections 4.1, 4.2, 5.2 and 5.3 of this Rule shall not**  **apply to modifications made to an existing source s olely to comply with regulatory**  **requirements or prohibitory rules and where there i s no actual or potential emissions**  **increase.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 5 **1.3.2.1 The requirements of Sections 4.2 and 5.3 sha ll not apply to any potential**  **emission increase that is less than the threshold f or a federal major**  **modification at a source that results from the inst allation, operation, or other**  **implementation of any emission control device or te chnique used to comply**  **with a District, state, or federal emission control requirement, including, but**  **not limited to, requirements for the use of reasona bly available control**  **technology or best available retrofit control techn ology, unless there is a**  **modification that results in an increase in capacit y of the unit being controlled.**  **1.3.3 Exemption: The requirements of Sections 4.2 a nd 5.3 of this Rule shall not apply to**  **any Emergency Internal Combustion Engine that is either only used for emergency**  **power when normal power line service fails, or are used only for the emergency**  **pumping of water, and are operated less than 60 hou rs per year for testing and exercise.**  **1.3.4 Exemption: The requirements of Sections 3.2** (Visibility, Soils, and Vegetation Analysis) **, 4.2** (“federal” Offsetting Requirements) **, 5.3** (State Offsetting Requirements) **, and 6.6** (Air Quality Increment Analysis) **of this Rule shall not apply to any Stationary Source that has emissions less th**  **an 10 tons/year of all individual criteria pollutants.**  **1.3.5 Exemption: The requirements of Sections 1.6.2** (Statewide Compliance Certification) **and 6.1** (Alternative Siting) **of this Rule shall not apply to an existing Statio nary**  **Source unless the modification is a federal Major M odification.**  **1.3.6 Exemption: Innovative Control Technology. Th e District may exempt an applicant**  **from the requirements of Section 4.1, Subsections 4 .2.2, 4.2.3, 4.2.11, 4.2.12, 4.3.3,**  **Sections 4.4, 5.2 and 5.3 of this Rule for a specif ied pollutant if all the criteria in**  **Subsections 1.3.6.1 through 1.3.6.5 below are met: 1.3.6.1 the source is not a major source, as defined**  **by Title 40, Code of Federal Regulations, Part 51, Section 165 (40 CFR Part 51.1**  **65); and 1.3.6.2 it is determined through the use of the air**  **quality impact table in Section 9.4, or**

**through air quality modeling, as in Section 9.1 her ein, that emissions from the**  **new or modified stationary source will result in a net air quality benefit and**  **will not cause or contribute to the violation of an y ambient air quality standard**  **or emissions increment established pursuant to this Rule; and**  **1.3.6.3 the source will utilize unique and innovativ e control technology which will** 

**result in a significantly lower emission rate for t he above-specified pollutant**  **from the installation than would have occurred with the use of previously**  **known best available control technology (BACT); and 1.3.6.4 the above-specified technology will likely s**  **erve as a model for technology to**

**be applied to similar installations within the stat e; and**  **1.3.6.5 emission reductions which create the air qua lity benefit must occur by the time** 

**a new or modified source commences operation, be qu antifiable, real, surplus,**  **permanent, enforceable and meet the requirements of Sections 3.4, 6.12, and**  **6.13 herein.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 6 **1.3.6.6 If the source meets all criteria except Subs ection 1.3.6.1 of Subsection 1.3.6** 

**above, the District may only exempt the applicant f rom the requirements of**  **Sections 4.1 and 5.2 of this Rule for a specified p ollutant.**  **1.3.7 The District shall withdraw any approval to em ploy a system of innovative control**  **technology approved under this Rule if: 1.3.7.1 the proposed system fails to achieve the req**  **uired continuous emission reduction rate within a time period specified by th**  **e District in the Authority to Construct, or the Permit to Operate, not to exceed**  **two years from the date of initial startup; or**  **1.3.7.2 the proposed system contributes to an unreas onable risk to public health,** 

**welfare, or safety; or 1.3.7.3 the proposed system becomes a public nuisanc**  **e. 1.3.8 If a source or modification fails to meet the**  **required level of continuous emissions reduction or its approval is withdrawn pursuant to**  **this Section, the District may allow the source up to an additional two years to m**  **eet the requirements of BACT.**
**1.3.9 If a source or modification fails to meet the required level of continuous emissions**  **reduction or its approval is withdrawn pursuant to this Section, the source shall**  **provide offsets for the residual emissions that wer e not offset.**  **1.3.10 Exemption: Expired or Revoked Permit. The o wner or operator of a source** 

**whose District permit has expired or been revoked f or nonpayment of fees under**  **the provisions of Regulation III (Fees), who subseq uently applies for reissuance of**  **a permit for that source, shall be exempt from the provisions of this Rule provided**  **no modifications have been made to the source since that source last held a valid**  **District permit.**

**1.4 Effective Date This Rule, as most recently revised, is effective o**  **n April 20, 2011.**

**1.5 References 1.5.1 The requirements of this Rule arise from the p**  **rovisions of the California Clean Air Act and amendments (Health and Safety Code Section**  **40910** et seq. **) and the federal Clean Air Act and amendments (42 U.S.C. Section 740**  **1** et seq. **)**
**1.5.2 Other related or referenced District rules or regulations include: Rule 101**  **(Definitions); Rule 200 (Permits Required); Rule 20 1 (Sources Not Requiring**  **Permits); Rule 215 (Banking of Emissions Reductions ); Rule 218 (Title V: Federal**  **Operating Permits); Regulation III (Fees); Rule 418 (Transfer of Gasoline into**  **Stationary Storage Containers); and Rule 1002 (Tran sfer of Gasoline into Vehicle**  **Fuel Tanks).**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 7 **1.6 Permit Denial The District shall deny an Authority to Construct o**  **r a Permit to Operate for any new stationary source or modification to an existing so**  **urce unless: 1.6.1 the new source or modification complies with a**  **ll applicable rules and regulations; and**  **1.6.2 the applicant certifies that all other major s tationary sources, which are owned or**  **operated by such person (or by any entity controlli ng, controlled by, or under**  **common control with such a person) in California a nd which are subject to emission**  **limitations are in compliance, or on a schedule for compliance, with all applicable**  **emission limitations and standards.**

**PART 2 DEFINITIONS**
**For the purpose of this Rule, the definitions below shall apply.** 
**2.1 Affected Pollutants These species include:**  **2.1.1 all pollutants for which an ambient air qualit y standard has been established by the**  **United States Environmental Protection Agency or th e Air Resources Board, as well**  **as the precursors to such pollutants; and 2.1.2 all pollutants regulated by the United States**  **Environmental Protection Agency under the federal Clean Air Act or by the Air Resources B**  **oard under the Health and Safety Code; and**  **2.1.3 all the pollutants which the United States Env ironmental Protection Agency after the**  **notice and opportunity for public comment, or, the Air Resources Board, or the**  **District after public hearing, determine may have s ignificant adverse effect on the**  **environment, the public health, or the public welfa re; and**  **2.1.4 include, but are not limited to: 2.1.4.1 volatile organic compounds (VOCs),**  **2.1.4.2 nitrogen oxides (NO x**  **), 2.1.4.3 sulfur oxides (SO**  **x ),**  **2.1.4.4 particulate matter less than 10 micrometers in aerodynamic diameter (PM**  **10 ),**  **2.1.4.5 particulate matter less than 2.5 micrometers in aerodynamic diameter (PM**  **2.5 ),**  **2.1.4.6 particulate matter (PM), 2.1.4.7 carbon monoxide (CO),**  **2.1.4.8 lead, 2.1.4.9 fluorides,** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 8 **2.1.4.10 sulfuric acid mist, 2.1.4.11 hydrogen sulfide (H**  **2 S),**  **2.1.4.12 total reduced sulfur compounds, and 2.1.4.13 reduced sulfur compounds.** 

**2.2 Air Basin The geographic area containing Monterey, San Benito**  **, and Santa Cruz counties.**
**2.3 Air Pollution Control Officer (APCO) The Air Pollution Control Officer for the Monterey**  **Bay Unified Air Pollution Control District, or his/her authorized representative.** 
**2.4 Air Quality Impact Table An air quality simulation table used to estimate ma** **ximum ground level impacts of a source of emissions of PM**  **2.5 , PM**  **10 , CO, oxides of sulfur and oxides of nitrogen,**  **assuming one hundred percent conversion of nitrogen oxides into NO**  **2 and calculating**  **all emissions of sulfur oxides as SO 2**  **(table contained in Section 9.4 herein).**
**2.5 Air Quality Increment**
**A maximum allowable increase in concentration of a pollutant, beyond baseline, as**  **established by the District Board and at least as s tringent as provided in the federal**  **Clean Air Act provisions in Section 163(b)and 40 CF R Part 51.166; or, for pollutants**  **for which no increment has been established pursuan t to the federal Clean Air Act, a**  **maximum allowable increase in concentration of a po llutant as established by the**  **District Board. 2.5.1 In establishing air quality increment for sulf**  **ur dioxide, the District Board shall take into consideration the impact of emissions on neigh** **boring areas. Baseline air quality shall be the ambient concentration level reflecting** **actual air quality as monitored or modeled as of the existing baseline date of July 18**  **, 1979, minus any contribution attributable to emissions from major stationary sou** **rces and modifications constructed since January 6, 1975. In establishing** **air quality increments for carbon monoxide, hydrogen sulfide, and lead, baseline air**  **quality shall be the ambient concentration as of January 1, 1984. In establishi**  **ng air quality increments for nitrogen dioxide, the baseline air quality shall be**  **the ambient concentration as of February 8, 1988. Air quality increments for PM**  **10 are in effect as of August 19,**  **1983. In establishing air quality increments for P M**  **2.5 , the baseline air quality shall**  **be the ambient concentration as of October 20, 2010**

**. 2.5.2 In accordance with the criteria contained in S**  **ubsection 2.5.1 herein, the District Board defines the following increments of allowable**  **air quality degradation, beyond**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 9 **the existing air quality levels, for pollutants for the respective areas indicated as**  **designated attainment: Table 2.5.2 District Board-Defined Air Quality Inc**  **rements Allowable Air Quality Degradation Beyond**  **Existing Air Quality Levels**
**Pollutant Designated Area A and**  **Area A Impact Zones**  **(μg/m 3**  **) Designated** 

**Areas C, D, and F**  **(μg/m 3**  **) Designated** 

**Areas B and E**
**(μg/m 3**  **) Averaging** 

**Period**

**Carbon Monoxide (CO) 4,000 8,000 12,000 1-hour Nitrogen Dioxide (NO**  **2 ) 2.5 20 25 annual**  **Hydrogen Sulfide (H 2**  **S) 4.2 8.4 12.6 1-hour Lead .15 .30 .45 30-day**  **PM 2.5**  **1 2**  **1**

**2 4** 

**9 annual** 

**24-hour PM**  **10 2.8**  **5.7 2.8** 

**5.7 10.8** 

**21.1 annual** 

**24-hour Sulfur Dioxide (SO**  **2 ) 2**  **5 25**  **2**

**5 25**  **20**

**91 512**  **annual**

**24-hour 3-hour** 

**2.6 Air Resources Board (ARB)**
**State of California Air Resources Board.**
**2.7 Ambient Air Quality Standards See National Ambient Air Quality Standards and Stat**  **e Ambient Air Quality Standards.**
**2.8 Area A Impact Zone All lands outside of the designated Area(s) A but w**  **ithin a 15-mile distance beyond the boundary of the designated Area(s) A, or other area**  **s established by the District based on standard meteorological techniques such as hourly w**  **ind roses, frequency distribution of atmospheric wind classes, morning and afternoon mix**  **ing depths and any other meteorological or geographical considerations neede**  **d to establish the Area A Impact Zone. See Subsection 2.18.1 herein for the definit**  **ion of designated Area(s) A.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 10 **2.9 Authority to Construct A written permit, as provided by Part 3.1 of Rule 2**  **00, issued by the District to a specific applicant:**  **2.9.1 prior to the building, erection, alteration, o r replacement of any article, machine,**  **equipment or other contrivance which may cause the issuance of air contaminants or**  **the use of which may eliminate, reduce or control t he issuance of air contaminants;**  **or 2.9.2 alternatively, to create federally enforceable**  **conditions, accepted voluntarily by a source for purposes of limiting its potential emiss**  **ions, applicable to any article, machine, equipment or other contrivance which may c**  **ause the issuance of air contaminants or the use of which may eliminate, red**  **uce or control the issuance of air contaminants.**  **2.9.3 Application Deemed Complete The District's action of deeming an Authority to Co**  **nstruct application complete, or the California Energy Commission's action of accept**  **ing an Application for Certification (AFC).**  **2.9.4 Authority to Construct is Issued The District's action of granting an Authority to C**  **onstruct, or the California Energy Commission's action of issuing its affirmative deci**  **sion on an Application for Certification (AFC).** 
**2.10 Best Available Control Technology (BACT) An emission limitation based on the maximum degree**  **of reduction for each pollutant which would be emitted from any new or modified sta** **tionary source, which on a case by-case basis, taking into account energy, environm**  **ental, and economic impacts and other costs, is achievable for such class or catego**  **ry of source, or modification through application of production processes or available me**  **thods, systems, and techniques.**
**2.10.1 BACT shall not be less stringent than the emi ssion control required by any** 

**applicable provision of District, ARB, State, or fe deral laws or regulations, unless**  **the applicant demonstrates to the satisfaction of t he District that such limitations**  **are not achievable. 2.10.2 In no event shall the application of BACT res**  **ult in the emissions of any pollutant**

**which exceed the emissions allowed by any applicabl e standard in 40 CFR Part 60**  **(New Source Performance Standards), or in 40 CFR Pa rt 61 (National Emission**  **Standards for Hazardous Air Pollutants), or in 40 C FR Part 63 (National Emission**  **Standards for Hazardous Air Pollutants for Source C ategories).** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 11 **2.11 California Coastal Waters**
**Those waters that are between the California coastl ine and a line starting at the**  **California-Oregon border at the Pacific Ocean: thence to 42.0 N 125.5 W;**  **thence to 41.0 N 125.5 W; thence to 40.0 N 125.5 W;**  **thence to 39.0 N 125.0 W; thence to 38.0 N 124.5 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, ending at the California-Mexico border at the Pacific Ocean.** 
**2.12 Cargo Carriers Cargo carriers include trains and marine vessels de**  **dicated to a specific stationary source.** 
**2.13 Chlorofluorocarbon (CFC) The family of chemical compounds containing carbon,**  **fluorine and chlorine; containing at least one carbon atom and having no hydrogen ato**  **ms and no double bonds; and which includes, without limitation, trichlorofluoro**  **methane (CFC-11), dichlorodifluoromethane (CFC-12), 1,1,2-trichloro-1**  **,2,2-trifluoroethane (CFC-113), 1,2-dichloro-1,1,2,2-tetrafluoroethane (CFC-114), a** **nd chloropentafluoroethane (CFC-115).** 

**2.14 Class I Area Any area having air quality or air quality related**  **values requiring special protection, which has been designated Class I by a federal or s**  **tate authority empowered to make such a decision.** 
**2.15 Complete Application Completeness of an application for an Authority to**  **Construct a new or modified stationary source shall be evaluated on the basis o**  **f the list of required information which was adopted by the District pursuant to Artic**  **le 3, Sections 65940 through 65944 of Chapter 4.5 of Division 1 of Title 7 of the Gove**  **rnment Code as it exists on the date on which the application is received.** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 12 **2.16 Contiguous Property Two or more parcels of land with a common boundary**  **or separated solely by a public roadway or other public right-of-way.** 

**2.17 Cost-Effective A cost per unit of emissions reduction which is low**  **er than or equivalent to the maximum unit costs of the same emission reduction t** **hrough the use of BACT calculated in current year dollars.** 
**2.18 Designated Areas, A, B, C, D, E, and F For the purposes of implementing the provisions of**  **this Rule the following locations, which are shown in Figure 1, are recognized as desi**  **gnated areas A, B, C, D, E, and F, respectively:**  **2.18.1 Area(s) A includes locations determined as Cl ass I areas mandated by the federal** 

**Clean Air Act and amendments (42 U.S.C. Section 740 1**  et seq. **)**
**The Class I areas located within the boundaries of the District designated Areas A**  **include the Pinnacles National Monument and the Ven tana National Wilderness.**  **2.18.2 Area(s) B includes the entirety of San Benito County except those areas** 

**designated as Area A or Area A Impact Zones; 2.18.3 Area(s) C includes the City of Carmel-by-the-**  **Sea and the Carmel Valley south to**

**the San Luis Obispo County line, including the Big Sur Coast, and the area**  **described by the boundary commencing with the north ern city limits of Carmel at**  **the Pacific Ocean, and is coterminous with the nort hern Carmel city limits to**  **Serra Avenue; then follows Serra Avenue to Highway 1, north to Aguajito Road,**  **to Loma Alta Road up to Jacks Peak Park; is bordere d on the north by the**  **southern boundary of the Jacks Peaks Park; then pro ceeds easterly to the west**  **crest of the Sierra De Salinas Mountain Range; then continues in a southeasterly**  **direction to the Palo Escrito Mountain Peak; throug h the Middle of Bear Canyon,**  **following Cachagua Conejo Creek; up Pine Creek to t he junction of the Los**  **Padres National Forest boundary; is bordered on th e east by the eastern border of**  **the Los Padres National Forest from the Pine Creek junction in a southerly** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 13 **Figure 1. Map of District Designated Areas**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 14 **direction to the San Luis Obispo County line, inclu ding all lands within the area** 

**defined above except those areas designated as Area A or Area A Impact Zones;**  **2.18.4 Area(s) D includes the entirety of Santa Cruz County;**  **2.18.5 Area(s) E includes the entirety of Monterey C ounty except areas designated A, C,** 

**F or Area A Impact Zones; and, 2.18.6 Area(s) F includes the area described by the**  **boundary starting at the northern**

**intersection of the boundary of the federal reserva tion of Ft. Hunter Liggett and**  **Highway G-14 (Jolon Highway); proceeding north alon g G-14 3.5 miles to the**  **mouth of Crazy Canyon; up Crazy Canyon southeast to the crest of the Sierra De**  **Salinas Mountains; then in a general southeasterly direction crossing Highway**  **G-18 at benchmark 352.9; proceeding still southeast erly along the crest of the**  **ridge line to Sulphur Canyon Road, approximately 1 mile downstream from the**  **San Antonio Dam; west along the road to the boundar y between Monterey and**  **San Luis Obispo Counties, following the county line west to the western**  **intersection of Highway G-14 and the county boundar y; northwest along Highway**  **G-14 to the southern intersection of Highway G-14 a nd the reservation boundary**  **of Ft. Hunter Liggett; then following the eastern b oundary of Fort Hunter Liggett**  **to the northern intersection of the reservation bou ndary and Highway G-14.**  **2.18.7 Other areas within the District having air qu ality or air quality related values** 

**requiring special protection may be redesignated to a more protective designation**  **by the District Board after holding a public hearin g, noticed 30 days in advance, to**  **consider public input concerning such designation.**

**2.19 District Refers to the Monterey Bay Unified Air Pollution Co**  **ntrol District (MBUAPCD) and its authorized representatives.** 

**2.20 District Board Refers to the Monterey Bay Unified Air Pollution Co**  **ntrol District Board.**

**2.21 Emissions Increment The increase in emissions of any pollutant which ca** **n be allowed in an area without causing the exceedance of any air quality increment** 

**.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 15 **2.22 Emission Reduction Credit (ERC) An actual emission reduction of specific type and q**  **uantity that is registered with the District in accordance with Rule 215. Must be surp**  **lus, quantifiable, permanent, real and enforceable.** 

**2.23 Enforceable Emission Reduction As defined by District Rule 215, an emission reduct**  **ion which can be verified for accuracy by the District. In general, specified by**  **restrictions imposed by conditions of an Authority to Construct and/or Permit to Operate.** 
**2.24 Exempt Compounds As defined in District Rule 101, Definitions.** 
**2.25 Federal Land Manager The Secretary of the Department with authority over**  **the specified federal lands.**
**2.26 Federal Major Modification A Major Modification as defined in 40 CFR §51.165,**  **except that the term “reviewing authority” as used in that Section shall mean the D**  **istrict, and the term “Significant” shall mean the same as a Major Modification to an E**  **xisting Source as defined in this Rule.** 
**2.27 Federally Enforceable Condition A condition that is enforceable by EPA and citizens**  **under the Clean Air Act. Such conditions shall include emission limitations, cont** **rols, and other requirements that are permanent, quantifiable, and otherwise enforceable**  **as a practical matter. Federally enforceable conditions established pursuant to Sect**  **ion 2.33.5 must meet the procedural requirements for public and EPA review in Sections**  **6.9, 6.10, and 1.3.6, 1.3.6, 6.11 of this Rule. Conditions in a District Permit to Oper**  **ate that meet the requirements in this Rule for federally enforceable conditions shall be**  **specifically designated as federally enforceable in the permit.** 
**2.28 Fugitive Emission Any emission that could not reasonably pass through** **a stack, chimney, vent or other functionally equivalent opening.** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 16 **2.29 Hydrochlorofluorocarbon (HCFC) Any member of the family of chemical compounds cont**  **aining hydrogen, carbon, fluorine and chlorine, and which includes, without**  **limitation, chlorodifluoromethane (HCFC-22).** 
**2.30 Hydrofluorocarbon (HFC) Any member of the family of chemical compounds cont**  **aining hydrogen, carbon, and fluorine, and which includes, without limitation, t** **rifluoromethane (HFC-23).**
**2.31 Major Modification to an Existing Source A modification to a stationary source in an air bas**  **in which has been designated as being either in attainment or nonattainment of national a** **mbient air quality standards, which may result in the potential to emit greater than th**  **e threshold levels provided by the federal Clean Air Act (42 U.S.C. Section 7401**  et seq. **) for that designation and pollutant.** 
**2.32 Major Stationary Source A stationary source in an air basin which has been**  **designated as being either in attainment or nonattainment of national ambient air**  **quality standards, which has the potential to emit greater than the threshold levels**  **provided by the federal Clean Air Act (42 U.S.C. Section 7401**  et seq. **) for that designation.**

**2.33 Modification May be any of the following:**  **2.33.1 Any physical change, change in method of oper ation of, or addition to an existing** 

**stationary source that would result in an actual or potential emissions increase**  **from any permit unit (as defined in Part 2 herein) or sum of permit units under**  **consideration as a result of the proposed modificat ion; or**  **2.33.2 any physical change, change in method of oper ation of, or addition to an existing** 

**stationary source for which an application to bank emissions reductions credits is**  **submitted to the District; or 2.33.3 any process or process material change, inclu**  **ding alternate fuels, production or**

**raw materials, that would result in an actual or po tential emissions increase,**  **unless specifically allowed by an Authority to Cons truct or Permit to Operate; or**  **2.33.4 any change in hours of operation or productio n rate which would necessitate a** 

**change in permit conditions of an Authority to Cons truct or Permit to Operate; or** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 17 **2.33.5 any change to a District Authority to Constru ct or Permit to Operate to establish** 

**federally enforceable conditions in the permit that are accepted voluntarily by the**  **source for purposes of limiting its potential emiss ions.**  **2.33.6 A reconstructed source, as defined in Section 2.55 herein, shall be treated as a new** 

**stationary source. 2.33.7 Unless previously limited by a permit conditi**  **on of an Authority to Construct or a**

**Permit to Operate, the following shall not be consi dered physical changes:**  **2.33.7.1 routine maintenance or repair; or 2.33.7.2 transfer of location of any article, machin**  **e, equipment or other contrivance for**

**which a Permit to Operate has previously been grant ed under Rule 200, and for**  **which no alteration or addition has been made. 2.33.8 Unless previously limited by a permit conditi**  **on of an Authority to Construct or a**

**Permit to Operate, the following shall not be consi dered changes in the method of**  **operation: 2.33.8.1 an increase in the production rate if such**  **an increase does not exceed the**

**operating design capacity or the actual demonstrate d capacity of the stationary**  **source as approved by the District in the Authority to Construct and Permit to**  **Operate; or 2.33.8.2 a change in ownership; or**  **2.33.8.3 a replacement of a piece of equipment with an identical piece of equipment** 

**with emissions less than or equal to those from the original piece of equipment.** 
**2.34 National Ambient Air Quality Standards (NAAQS) Air quality standards set by the Administrator of t** **he United States Environmental Protection Agency to protect public health and welf**  **are and, in general, consisting of primary and secondary standards. Primary standards**  **are to protect the public health, while secondary standards are intended to protect t** **he public welfare,** e.g. **, plants, crops, and materials.** 
**2.35 Net Air Quality Benefit A net improvement in air quality resulting from act**  **ual emissions reductions impacting the same general area affected by the new or modifi**  **ed source and which will be consistent with reasonable further progress.** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 18 **2.36 Net Emissions Increase 2.36.1 The sum of all increases in potential emissio**  **ns of any given pollutant except PM 2.5** 

**or PM 10**  **from a new or modified stationary source occurring since July 15, 1976,**  **minus any reductions in emissions of that pollutant at the stationary source**  **occurring since July 15, 1976, calculated according to the provisions of Part 7 of**  **this Rule; or 2.36.2 the sum of all increases in potential emissio**  **ns of PM 2.5**  **from a new or modified**

**stationary source occurring since October 20, 2010, minus any reductions in**  **emissions of PM 2.5**  **at the stationary source occurring since October 2 0, 2010,**  **calculated according to the provisions of Part 7 of this Rule.; or**  **2.36.3 the sum of all increases in potential emissio ns of PM**  **10 from a new or modified** 

**stationary source occurring since August 19, 1983, minus any reductions in**  **emissions of PM 10**  **at the stationary source occurring since August 19 , 1983,**  **calculated according to the provisions of Part 7 of this Rule.** 
**2.36.3.1 The PM 10**  **emissions from an existing stationary source shall be recalculated** 

**from the PM emission increases and reductions which have occurred since**  **August 19, 1983 using PM 10**  **emission factors. When PM 10**  **emissions factors do not exist, 50 percent of the total TSP shall be**  **assumed to be PM 10**  **. All PM emission increases and decreases occurring prior to**  **August 20, 1983 are zeroed.**  **2.36.3.2 If the applicant has provided full offsets for PM emissions occurring since** 

**August 19, 1983 but before April 21, 1993 those PM emissions need not be**  **recalculated as PM 10**  **because the net emissions increase at the time of the offset**  **is considered zero.**

**2.37 New Emissions Increase The sum of all increases in potential emissions of**  **any given pollutant from a new or modified stationary source. The increases shall be**  **calculated according to the provisions of Part 7 of this Rule.** 

**2.38 New Source A location at which new equipment is being installe**  **d, on or after the appropriate applicability date, which does not currently hold a**  **valid District Authority to Construct or Permit to Operate. For the purposes of Part 4 o**  **f this Rule, the applicability date shall be July 15, 1976. For the purposes of Part 5 of th**  **is Rule, the applicability date shall be April 21, 1993.** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 19 **2.39 New Source Review (NSR) A system designed, through the use of a permitting**  **program applicable to new or modified sources, to reduce ambient air concentrati**  **ons of pollutants for which specific areas have been designated as nonattainment.** 
**2.40 Nitrogen Oxides (NO x**  **) The molecular forms of nitrogen oxide and nitrogen**  **dioxide. When measured or calculated, the total of the two molecular forms as**  **nitrogen dioxide.**

**2.41 Nonattainment Pollutant Any pollutant for which an ambient air quality stan**  **dard was exceeded within the air basin more than three discontinuous times (or, for**  **annual standards, more than one time) within the three years immediately preceding**  **the date when the application for the Authority to Construct was filed; or**  **which has been designated nonattainment pursuant to final rulemaking either by the**  **United States Environmental Protection Agency and p ublished in the Federal Register,**  **or by the Air Resources Board, as well as any precu rsors of such pollutants.** 

**2.42 Offset Where used as a noun, an emission reduction from an** **existing source, whether or not under the same ownership as a proposed project, tha** **t is necessary to mitigate an emission increase of an affected pollutant from the**  **proposed project that would otherwise prevent the lawful issuance by the Distri**  **ct of an Authority to Construct or a Permit to Operate. When used as a verb, the proces**  **s of providing such an emission reduction.** 

**2.43 Permanent Emission Reduction As defined in District Rule 215, an emission reduct**  **ion which is assured for the life of the corresponding increase, whether limited or unli**  **mited in duration, and that the benefits of the emission reduction do not diminish**  **or disappear over time.**
**2.44 Permit to Operate A written permit, as provided by Part 3.1 of Rule 2**  **00, with any specified conditions required, issued by the Monterey Bay Unified Air Po**  **llution Control District to a specific applicant for the operation or use of any article,**  **machine, equipment or other contrivance which may cause the issuance of air con** **taminants or the use of which may eliminate, reduce or control the issuance of air co**  **ntaminants.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 20 **2.45 Permit Unit A piece of equipment, product line, system, unit, p**  **rocess line or process that produces a product or performs a function independently of oth**  **er equipment, product lines, systems, units, process lines or processes. (From**  **District Rule 101, Definitions.)**
**2.46 PM (Particulate Matter); Previously Total Suspe nded Particulates (TSP)**  **Any airborne finely divided solid or liquid materia l with an aerodynamic diameter less**  **than 100 micrometers (** : **m).**

**2.47 PM 2.5**  **Particulate matter with aerodynamic diameter smalle r than or equal to a nominal 2.5**  **micrometers (** : **m) as measured by an appropriate reference test met hod.** 

**2.48 PM 10**  **Particulate matter with aerodynamic diameter smalle r than or equal to a nominal 10**  **micrometers (** : **m) as measured by an appropriate reference test met hod.** 

**2.49 Pollutant**
**See Affected Pollutant.**

**2.50 Potential to Emit The maximum daily capacity of a permit unit to emit**  **a pollutant under its physical and operational design. Any physical or operational li**  **mitation on the daily capacity of the unit to emit a pollutant, including pollution contr**  **ol equipment and restrictions in hours or operation, or on the type or amount of material**  **combusted, stored or processed, shall be treated as part of its design only if the limita** **tion, or the effect it would have on daily emissions, is incorporated into the applicable Auth**  **ority to Construct and Permit to Operate as an enforceable permit condition.** 

**2.51 Precursor A directly emitted pollutant that, when released to**  **the atmosphere, forms or causes to be formed or contributes to the formation of a seconda** **ry pollutant for which a national ambient air quality standard has been adopted, or w** **hose presence in the atmosphere will contribute to the violation of one or more national**  **ambient air quality standards. The following precursor-secondary pollutant relationshi**  **p shall be used for purposes of this Rule:** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 21 **Precursor Secondary Pollutant 2.51.1 volatile organic compounds (VOCs) 1) ozone**  **2) organic fraction of particulate matter (PM**  **10 )**  **2.51.2 nitrogen oxides (NO x**  **) 1) ozone 2) nitrogen dioxide (NO**  **2 )**  **3) nitrate fraction of particulate matter (PM**  **10 )**  **4) nitrate fraction of particulate matter (PM**  **2.5 )**  **2.51.3 sulfur oxides (SO x**  **) 1) sulfur dioxide (SO 2**  **) 2) sulfates (SO**  **4 )**  **3) sulfate fraction of particulate matter (PM**  **10 )**  **4) sulfate fraction of particulate matter (PM**  **2.5 )** 
**2.52 Prevention of Significant Deterioration (PSD) A system designed, through the use of a permitting**  **program applicable to new or modified sources, to avert consequential increases**  **in ambient air concentrations of pollutants for which specific areas have been desig** **nated as either attainment or unclassifiable under federal guidelines.** 
**2.53 Quantifiable Emission Reduction As defined in District Rule 215, an emission reduct**  **ion, the rate and characteristics of which can be determined by the District with reason**  **able accuracy. Quantification may be based on emission factors, stack tests, monitore**  **d values, operating rates and averaging times, process or production inputs, mode**  **ling, or other reasonable measurement practices.** 

**2.54 Real Emission Reduction As defined in District Rule 215, those emission red**  **uctions that have actually occurred, have been implemented and are not artificially devi**  **sed.**

**2.55 Reconstructed Source Any source undergoing physical modification where t** **he fixed capital cost of the new components exceeds 50 percent of the fixed capital**  **cost of a comparable entirely new stationary source. Fixed capital cost means that c**  **apital needed to provide all the depreciable components.** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 22 **2.56 Seasonal Source Any source with more than 75 percent of its annual**  **emissions within a consecutive 90-day period.** 

**2.57 Source See Stationary Source.** 
**2.58 State Ambient Air Quality Standards Air quality standards set by the California Air Res**  **ources Control Board "in consideration of the public health, safety, and wel**  **fare, including, but not limited to, health, illness, irritation to the senses, aestheti**  **c value, interference with visibility, and the effects on the economy" (California Health and**  **Safety Code Section 39606 [b]). A distinction is not made between standards to protec**  **t public health and welfare,** i.e. **, primary and secondary standards.** 
**2.59 State Implementation Plan (SIP) Plan which is required to be submitted by each Stat**  **e under 42 U.S.C. Section 7401** et seq **. (federal Clean Air Act) to achieve and maintain n ational ambient air quality**  **standards (NAAQS).**
**2.60 Stationary Source Any building, structure, facility, or installation**  **which emits or may emit any affected pollutant directly or as a fugitive emission.**  **2.60.1 Installation includes any operation, article, machine, equipment or other** 

**contrivance which emits or may emit any affected po llutant.**  **2.60.2 Building, structure, or facility includes all pollutant emitting activities, including** 

**activities located in California coastal waters adj acent to the District boundaries**  **which: 2.60.2.1 belong to the same industrial grouping;**  **2.60.2.2 are located on one or more contiguous or ad jacent properties (except for**  **activities located in coastal waters); and, 2.60.2.3 are under the same or common ownership, ope**  **ration, or control or which are**

**owned or operated by entities which are under commo n control.** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 23 **2.60.3 Pollutant emitting activities shall be consid ered as part of the same industrial** 

**grouping if: 2.60.3.1 they belong to the same two-digit standard**  **industrial classification code, or, 2.60.3.2 they are part of a common production proces**  **s. (Common production process**

**includes industrial processes, manufacturing proces ses, and any common raw**  **material).**
**2.60.4 The emissions within District boundaries and California coastal waters as defined** 

**in Section 2.11 herein, from cargo carriers associa ted with the stationary source**  **shall be considered emissions from the stationary s ource to the extent provided in**  **Subsections 7.3.4, 7.3.4.1, and 7.3.5 herein.**
**2.61 Sulfur Oxides (SO x**  **) The chemical species of sulfur dioxide and sulfur t** **rioxide. When measured or calculated, the total of the two chemical species a**  **s sulfur dioxide.**
**2.62 Surplus Emission Reduction As defined in District Rule 215, emission reduction**  **s not already encumbered by any federal, State, ARB, District, or local agreement,**  **law, order, plan, regulation, requirement, or rule.** 
**2.63 Upwind Areas The area bounded by a line passing through the site**  **of the new or modified source perpendicular to the predominant summer wind flow l**  **ine and extending to the boundaries of the same air basin in the direction o**  **pposite the predominant summer wind flow, except where the District determines that for**  **reasons of topography or meteorology such a definition is inappropriate.** 
**2.64 Volatile Organic Compounds (VOCs) As defined in District Rule 101, Definitions.** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 24 **PART 3 GENERAL REQUIREMENTS**
**Any source subject to this Rule shall be subject to the following requirements.** 

**3.1 Pre-Construction and Post-Construction Air Monit oring**  **The owner or operator of a stationary source subjec t to the requirements of this Rule**  **shall conduct ambient air quality monitoring as the District finds necessary to determine**  **the effect emissions from the stationary source or modification may have, or are having,**  **on air quality in the area. All monitoring shall c omply with United States**  **Environmental Protection Agency guidelines for moni toring (40 CFR Part 58, Appendix**  **B). 3.1.1 Pre-construction air quality monitoring data m** **ust be gathered over a period of one year preceding the application of the source. If t** **he District determines that an adequate analysis can be done over a period of less**  **than one year, but not less than four months, the shorter period can be used. If su**  **fficient representative monitoring data already exists for analysis, no monitoring wi**  **ll be required. 3.1.2 Post-construction air quality monitoring data**  **must be collected as deemed necessary by the District to determine the effect emissions f**  **rom the stationary source or modification are having on air quality.** 
**3.2 Visibility, Soils, and Vegetation Analysis The applicant shall provide the District with analy**  **sis of impairment to visibility, soils, and vegetation, and the projected air quality impac**  **t for the area, that would occur as a result of the source or modification and general co**  **mmercial, residential, industrial, and other growth associated with the source or modifica** **tion.**
**3.3 Ambient Air Quality Standards and Emission Incre ments**  **In no case shall the emissions from the new or modi fied stationary source, or in**  **conjunction with other increases in emissions, caus e or contribute to the violation of an**  **ambient air quality standard or exceed any air qual ity increment. The air quality impact**  **table contained in Section 9.4 or appropriate air q uality modeling as in Section 9.1**  **herein shall be used to estimate the effects of a n ew or modified source. In making this**  **determination the District shall take into account the mitigation of emissions through**  **offsets obtained pursuant to this Rule.**

**3.4 Mandated Reductions Emission reductions required by any permits, agreem**  **ents, orders, plans or requirements of federal, State, Air Resources Board, or District**  **laws, rules and regulations, or the State Implementation Plan shall not be used as offs**  **ets.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 25 **3.5 Source Shutdowns and Curtailments Source shutdowns and curtailments may not be given**  **emission reduction credits in the case of precursor organic pollutants if they occurr**  **ed prior to the date of application unless the proposed new source or modification is a**  **replacement at the same source, and the shutdown or curtailment occurred after August 7**  **, 1977.**
**3.6 Interpollutant Offsets The District may approve interpollutant offsets on**  **a case-by-case basis, provided that the trade is technically justified and that the app**  **licant demonstrates to the satisfaction of the District, through the use of the air quality im** **pact table contained in Section 9.4 or by appropriate air quality modeling as in Section 9.1**  **herein, that the emission increases from the new or modified source or in conjunction w**  **ith other increases in emissions will result in a net air quality benefit and will n**  **ot cause or contribute to a violation of an ambient air quality standard or exceed any air qual**  **ity increment established pursuant to this Rule. In such cases, the District shall, base**  **d on air quality analysis, impose offset ratios greater than the requirements of Section 4.3**  **herein. Interpollutant trades between PM**  **10 and PM**  **10 precursors may be allowed. PM**  **10 emissions shall not be allowed to offset NO**  **x or VOC emissions in ozone nonattainment**  **areas. PM 10**  **emissions shall not be allowed to offset SO x** **emissions in sulfate nonattainment areas.** 

**PART 4 FEDERAL CLEAN AIR ACT REQUIREMENTS**
**4.1 Best Available Control Technology (BACT) Require ments**  **An applicant shall apply BACT to a new stationary s ource or modification of an existing**  **source, except cargo carriers, for each affected po llutant, under the following**  **conditions: 4.1.1 a new stationary source which has the potentia**  **l to emit greater than or equal to any one of the affected pollutant levels listed in Tabl**  **e 4.1.1 below:**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 26 **Table 4.1.1 Emission Thresholds for BACT**

**POLLUTANT EMISSION RATE IN POUNDS/DAY**
**VOC 150**  **NO x**  **as NO 2**  **150 SO**  **x as SO**  **2 150**  **PM 150**  **PM 10**  **82 PM**  **2.5 54.79**  **CO 550**  **Lead 3.28**  **Fluorides 16.44**  **Sulfuric Acid Mist 38.35 Hydrogen Sulfide (H**  **2 S) 54.79**  **Total Reduced Sulfur Compounds (including H**  **2 S)**  **54.79**
**Reduced Sulfur Compounds (including H 2**  **S) 54.79**

**or, 4.1.2 a modification of an existing stationary sourc**  **e which has the potential to result in a new emissions increase, as defined in Section 2.37**  **herein, occurring after October 20, 2010 for PM**  **2.5 or after August 19, 1983 for PM**  **10 or after July 15, 1976 for any**  **other affected pollutant, from any permit unit or s um of permit units from the same**  **source of an affected pollutant by an amount in exc ess of any of the limits stated in**  **Subsection 4.1.1 herein. 4.1.3 For a modified source, BACT shall be applied t**  **o the new or modified equipment whose emissions trigger the requirement for BACT.**  **4.1.4 A new source or modification subject to BACT f or any pollutant subject to this**  **Section shall apply BACT for any other affected pol lutant emitted from the new**  **source or modification, if the District should so r equire.** 

**4.2 Offset Requirement, General 4.2.1 In Area A and Area A Impact Zones, offsets as**  **specified in Subsections 4.3.1 and 4.3.2 herein shall be required from a new or modifi**  **ed stationary source with net emissions increases equal to or exceeding 150 pound**  **s per day of volatile organic compounds, or nitrogen oxides, or sulfur oxides, or**  **particulate matter (PM) or carbon**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 27 **monoxide; or 82 pounds per day of PM 10**  **. This information is summarized in table 4.2.2 below.**  **4.2.2 In areas other than Area A or Area A Impact Zo nes, offsets as specified in 4.3.3 shall**  **be required for an affected pollutant from a new or modified stationary source with a**  **net emissions increase equal to or exceeding 150 po unds per day for volatile organic**  **compounds, or nitrogen oxides or sulfur oxides, or particulate matter (PM); 550**  **pounds per day of carbon monoxide; or 82 pounds per day of PM**  **10 , as summarized in**  **table 4.2.2 below:**

**Table 4.2.2 Emissions Thresholds for Offsets**

**POLLUTANT EMISSIONS INCREASE IN AREA A AND AREA A**  **IMPACT ZONES EMISSIONS INCREASE**  **IN B,C,D,E AND F AREAS**  **VOC 150 pounds per day 150 pounds per day NO**  **x as NO**  **2 150 pounds per day 150 pounds per day**  **SO x**  **as SO 2**  **150 pounds per day 150 pounds per day CO 150 pounds per day 550 pounds per day**  **PM 150 pounds per day 150 pounds per day PM**  **10 82 pounds per day 82 pounds per day** 
**4.2.3 Offsets for increases in carbon monoxide shall not be required if the applicant**  **demonstrates to the satisfaction of the District, t hrough the use of the air quality**  **impact table contained in Section 9.4 of this Rule, or by approved air quality**  **modeling as in Section 9.1 herein, that the ambient air quality standards are not**  **violated in the areas to be affected, and such emis sions will not cause or contribute to**  **a violation of ambient air quality standards. 4.2.4 Offsets shall be actual, quarterly, enforceabl**  **e emissions reductions for existing sources, sufficient to offset all anticipated quart**  **erly emission increases as calculated according to Sections 7.3, 7.4 and 7.5 of this Rule**  **, associated with new or modified stationary sources and which will result in a net a**  **ir quality benefit.**
**4.2.5 The amount of offsets obtained shall be at lea st equal to the net emissions increase**  **from the proposed new source or modification.**
**4.2.6 Increases in emissions shall be determined in accordance with the calculation**  **methods described in Subsections 2.36.1, 2.36.2, 2. 36.3, Sections 7.3, 7.4 and 7.5 of**  **this Rule, or an equivalent calculation procedure a pproved by the District.** 
**4.2.7 Reductions in emissions shall be valid for det ermining net emissions increases only**  **if they are established pursuant to an Authority to Construct and a Permit to Operate.** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 28 **4.2.8 Mandated reductions of emissions shall not be used as offsets, pursuant to Section** 

**3.4 herein.**
**4.2.9 All emission reductions must be identified and enforceable prior to issuance of the**  **Authority to Construct. 4.2.9.1 The emission reductions must be eligible und**  **er the provisions of District Rule**

**215; and 4.2.9.2 must be entered in the District ERC Registry**  **, unless the emission reductions**

**are made at the same time as the permit application is made and on-site at the**  **same stationary source.**
**4.2.9.2.1 For emission reductions made at the same t ime as the permit application** 

**is made and on-site at the same stationary source, permit modifications to**  **ensure permanent emission reductions must be made. 4.2.10 In no case shall exempt compounds as defined**  **in Section 2.24, 2.26 of this Rule,**

**be used as offsets for volatile organic compounds a s defined in Section 2.64 of**  **this Rule. 4.2.11 If a source is required to obtain offsets for**  **a pollutant pursuant to this Section, then that source must obtain offsets, at least equa**  **l to the net emissions increase, for any increase in emissions of all the following**  **pollutants: volatile organic compounds, nitrogen oxides, sulfur oxides, particul**  **ate matter (PM), and PM 10**  **. 4.2.12 The District may exempt a source from offset**  **requirements for all the attainment**

**pollutants, and any nonattainment pollutants which do not exceed levels specified**  **in Subsections 4.2.1 and 4.2.2 provided that the ap plicant demonstrates to the**  **satisfaction of the District all of the following: 4.2.12.1 that the requirement of offsets will result**  **in little or no air quality benefit; and**
**4.2.12.2 that emissions offsets are not available or would not be cost-effective; and**  **4.2.12.3 that any net emissions increases from the n ew or modified stationary source or** 

**in conjunction with other increases in emissions wi ll be consistent with**  **reasonable further progress and will not cause a vi olation of an ambient air**  **quality standard or exceed an air quality increment**

**.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 29 **4.3 Location of Offsets and Offset Ratios**

**Table 4.3 Summary of Offset Ratio Requirements**

**Source Location/Area Offset Obtained**  **Ratio for Non-Attainment Pollutants**  **Ratio for Attainment Pollutants** 
**Area A/Area A <15 miles radius**  **1.2:1 1.2:1**
**Area A Impact Zone/Area A or Area A Impact Zone**  **<15 miles radius 1.2:1 1.2:1** 

**Non-A/Same Source <15 miles radius**  **1:1 (or 1.15:1 if a major source or major modification)**  **1:1**

**Non-A/Different Source <15 miles radius**  **1.2:1 1.1:1**

**Non-A/>15 miles radius 2:1 1.2:1 Non-A/different air basin 2.5:1 1.3:1**  **4.3.1 The emissions from a proposed source, subject to this Rule, which is to be located**  **within an Area A must be offset by emissions reduct ions obtained from within the same**  **Area A, at a minimum ratio of 1.2 to 1 and within a 15-mile radius of the proposed**  **source if that will provide for a net air quality b enefit; or at a ratio and distance to be**  **approved by the District based on air quality analy sis or modeling sufficient to**  **demonstrate a net air quality benefit in the Area A . In no case shall the offset ratio for**  **nonattainment pollutants be lower than the 1.2 to 1 ratio required above in this Section.**  **4.3.2 Emissions from a proposed source, subject to t his Rule, which is to be located in an**  **Area A Impact Zone must be offset by emissions redu ctions obtained from within the**  **impact zone, or from the affected Area A, at a mini mum ratio of 1.2 to 1, and within a**  **15-mile radius of the proposed source if that will provide for a net air quality benefit; or**  **at a ratio and distance to be approved by the Distr ict based on air quality analysis or**  **modeling sufficient to demonstrate a net air qualit y benefit in the Area A. In no case**  **shall the offset ratio for nonattainment pollutants be lower than the 1.2 to 1 ratio**  **required above in this Section. 4.3.3 Emissions from a proposed source subject to th**  **is Rule which is to be located outside an Area A or Area A Impact Zone are to be offset wi**  **th emissions reductions from within a 15-mile radius of the proposed source. Th**  **e emissions shall be offset at a minimum ratio of 1 to 1 if the offsets are from the**  **same source, unless the proposed source is a major stationary source or a major modi**  **fication to an existing source. In such cases, the emissions shall be offset at a mini**  **mum ratio of 1.15 to 1 if the offsets are from the same source. The emissions shall be o**  **ffset at a minimum ratio of 1.2 to 1 for nonattainment pollutants for offsets located**  **outside of the proposed source but within the 15-mile radius and shall result in a net**  **air quality benefit. The emissions for all other pollutants designated in Section 4.2.**  **2 herein shall be offset at a minimum ratio of 1.1 to 1 for offsets located outsi**  **de of the proposed source but**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 30 **within the 15-mile radius, and the District shall a nalyze the impact on the air quality** 

**increment. Based on air quality analysis or modeli ng, approved by the District,**  **which demonstrates a net air quality benefit, offse t ratios and distances other than**  **those above may be applied. In no case shall the o ffset ratios be lower than the ratios**  **required above in this Section. 4.3.3.1 If an applicant demonstrates to the satisfac**  **tion of the District that sufficient**

**offsets do not exist at sources owned by the applic ant, and are not available at**  **other sources within a 15-mile radius of the propos ed source, offsets shall be**  **obtained from an upwind area within the air basin a t a minimum ratio of 2.0 to**  **1 for nonattainment pollutants and minimum ratio of 1.2 to 1 for all other**  **pollutants designated in Section 4.2.2 herein; or, at a ratio and distance to be**  **approved by the District based on air quality analy sis and modeling sufficient**  **to demonstrate a net air quality benefit, or to dem onstrate that no emissions**  **increments will be exceeded within the air basin. In no case shall the offset**  **ratios be lower than the ratios required above in t his Section.**  **4.3.3.2 If an applicant demonstrates to the satisfac tion of the District that sufficient** 

**offsets do not exist at sources owned by the applic ant, and are not available at**  **an upwind area within the air basin, offsets may be obtained from an upwind**  **area outside the air basin at a minimum ratio of 2. 5 to 1 for nonattainment**  **pollutants and minimum ratio of 1.3 to 1 for all ot her pollutants designated in**  **Section 4.2.2 herein; or, at a ratio and distance t o be approved by the District**  **based on air quality analysis and modeling sufficie nt to demonstrate a net air**  **quality benefit, or to demonstrate that no emission s increments will be**  **exceeded within the air basin. In no case shall th e offset ratios be lower than**  **the ratios required above in this Section. 4.3.3.2.1 Any offset credited pursuant to Subsection** **4.3.3.2 shall be approved by a**

**resolution adopted by the governing board of the up wind district and the**  **District Board. In adopting a resolution pursuant to this Subsection, the**  **District Board shall consider the impact of the off set on air quality,**  **public health, and the regional economy. 4.3.3.2.2 The offsets may only be obtained from an u**  **pwind area that has been designated by EPA to have a nonattainment status eq**  **ual to or more serious than the North Central Coast air basin.**  **4.3.3.2.3 The offsets may only be obtained from an u pwind area that could**  **contribute to violations of the national ambient ai r quality standards in**  **the North Central Coast air basin. 4.3.3.3 If an applicant demonstrates to the satisfac**  **tion of the District that sufficient**

**offsets, for emissions that do not exceed ambient a ir quality standards, do not**  **exist at sources owned by the applicant and are not available at other sources**  **within a 15-mile radius or in an upwind area, the D istrict may choose to allow**  **an applicant to use a percentage, not to exceed 50 percent, of the remaining**  **emissions increments, as determined by the District**

**.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

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### 31 **4.4 Offsets, Seasonal Sources**
**Emissions offset ratios stated in Section 4.3 herei n shall be required for new or modified**  **seasonal sources (as defined in Section 2.56 herein ), provided that the offsets occur**  **within the same season during which the seasonal so urce operates. Offsets obtained in a**  **season other than that in which the proposed source will be operating may be used only**  **if the applicant demonstrates to the satisfaction o f the District that such interseason**  **tradeoffs will result in a net air quality benefit.**

**4.5 Protection of Class I Areas 4.5.1 Any new or modified stationary source shall be**  **subject to the requirements of this Rule if it will:**  **4.5.1.1 have any net emissions increase greater than zero pounds per day of volatile** 

**organic compounds, or nitrogen oxides, or sulfur ox ides, or particulate matter;**  **and 4.5.1.2 be constructed within a designated Area A or**  **Area A Impact Zone after July 18, 1979; and**  **4.5.1.3 increase ambient pollutant concentration of the Area A by one microgram per** 

**cubic meter (24-hour average) or more. 4.5.2 Any new or modified stationary source shall be**  **subject to the requirements of this Rule if it will:** 
**4.5.2.1 have a net emissions increase of PM 10**  **more than zero pounds per day; and 4.5.2.2 be constructed within a designated Area A or**  **Area A Impact Zone after August 19, 1983; and** 
**4.5.2.3 increase PM 10**  **ambient concentration of the Area A by 0.57 microg ram per** 

**cubic meter (24-hour average) or more. 4.5.3 Any new or modified stationary source shall be**  **subject to the requirements of this Rule if it will:** 
**4.5.3.1 have a net emissions increase of PM 2.5**  **more than zero pounds per day; and 4.5.3.2 be constructed within a designated Area A or**  **Area A Impact Zone after October 20, 2010.**  **4.5.4 The air quality impact table in Section 9.4, o r appropriate air quality modeling as in**  **Section 9.1 herein, shall be used to estimate the i mpact of the source on Area A.** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 32 **PART 5 CALIFORNIA CLEAN AIR ACT (CCAA) REQUIREMENTS**
**This Part contains additional provisions required u nder the California Clean Air Act as amended.** 
**5.1 Parallel Review and Stringency of Requirements Each project subject to New Source Review shall und**  **ergo a review under the federal requirements contained within all other parts of th**  **is Rule, and a parallel review under the requirements of this Part. In cases where the**  **requirements under the federal Clean Air Act and the California Clean Air Act differ, th**  **e most stringent applicable provisions shall apply.** 
**5.2 CCAA Best Available Control Technology (BACT) Re quirements**  **BACT shall be required for any new or modified perm it unit with a potential to emit 25**  **pounds per day or more of VOCs or NO x**  **. 5.3 CCAA Offset Requirements**  **5.3.1 Any new or modified stationary source with a p otential to emit 137 pounds per day**  **or more of VOCs or NO x** **shall be required to provide offsets at the ratios specified in**  **Section 4.3 herein. 5.3.2 Offsets shall be actual, quarterly, enforceabl**  **e emissions reductions from existing sources, sufficient to offset all anticipated quart**  **erly emissions increases as calculated according to Subsections 5.3.3 and 5.3.4 of this Ru**  **le, associated with new or modified stationary sources, and which will result**  **in a net air quality benefit.**
**5.3.3 The amount of offsets obtained shall be at lea st equal to the potential to emit from**  **the proposed new source. 5.3.4 For any modified source, the amount of offsets**  **obtained shall be at least equal to the difference between the emissions of the modified so**  **urce, and the emissions of the existing source.** 
**5.4 CCAA Stationary Source Calculations For the purposes of determining offset requirements**  **under this Part, emissions profiles for new sources, existing sources or modified sourc**  **es shall be based on the potential to emit as described under Section 7.1 herein. Compar** **ison of new, modified or existing sources shall be done in accordance with Sections 7**  **.3 and 7.5 herein. Calculation of emission reductions shall be done in accordance wit** **h Section 7.6 herein.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 33 **PART 6 ADMINISTRATIVE REQUIREMENTS**
**The following administrative requirements shall app ly to activities pursuant to this Rule, except**  **for the review of power plants over 50 megawatts. Power plants over 50 megawatts shall be**  **subject to the review requirements of Part 8.**
**6.1 Alternative Siting For those sources for which an analysis of alternat**  **ive sites, sizes, and production processes is required under 42 U.S.C. Section 7401**  et seq. **, the District shall require the applicant to prepare an analysis functionally equiv**  **alent to the requirements of Division 13 of the Public Resources Code.** 
**6.2 Complete Application The District shall determine whether the applicati**  **on is complete no later than 30 days after receipt of the application, or after such lon**  **ger time as both the applicant and the District may agree is acceptable.**  **If the District determines that the application is not complete, the applicant shall be**  **notified in writing of the decision specifying the information required. Upon receipt of**  **any resubmittal of the application, a new 30-day pe riod to determine completeness shall**  **begin. Completeness of an application or resubmitted appli**  **cation shall be evaluated on the basis of the information requirements set forth in**  **District regulations (adopted pursuant to Article 3, Sections 65940 through 65944 of Chapt**  **er 4.5 of Division 1 of Title 7 of the Government Code) and application guidance as they e**  **xist on the date on which the application or resubmitted application was received** 

**. Upon determination that the application is complete**  **, the District shall notify the applicant in writing. The District may, during the**  **processing of the application, request an applicant to clarify, amplify, correct, or other**  **wise supplement the information submitted in the application.** 
**6.3 Plantwide Applicability Limit (PAL) The operator of a major stationary source may apply**  **to the APCO for approval to use a PAL to avoid the requirements of Sections 1.6.2 (St**  **atewide Compliance) and 6.1 (Alternative Siting) only. The APCO shall approve**  **use of a PAL if the source operator demonstrates that the PAL will conform with the pro**  **visions specified in 40 CFR §51.165(f)(1) through (15).** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 34 **6.4 Proposed Sources in Federal Class I Areas 6.4.1 Permit Notice: The District shall provide not**  **ice within ten days of determining that an application is complete which has been submitted**  **for a proposed major stationary source or major modification of an existing source,**  **whose emissions would affect a federal Class I Area, to the Federal Land Manager a** **nd the federal official charged with direct responsibility for management of the sp**  **ecified lands. The Federal Land Manager shall be provided a copy of the complete ap**  **plication and shall be notified of all subsequent actions relating to the consideratio**  **n of such permit. 6.4.2 Source Impacting Class I Areas: The District**  **shall accept and consider comments offered within public comment period following the**  **date of publication by the Federal Land Manager of any lands contained within**  **a federal Class I Area impacted by a proposed major stationary source or major modi**  **fication to an existing stationary source. If the Federal Land Manager demonstrates t** **hat the emissions from a proposed major source or major modification would h**  **ave an adverse impact on the air quality-related values (including visibility) o**  **f any federal mandatory Class I Areas, and if the District concurs with such demons**  **tration, then the District shall deny the Authority to Construct.**  **6.4.3 Federal Land Manager Appeals: If the District recommends a permit with which the**  **Federal Land Manager or the federal official charge d with direct responsibility over**  **the specified lands does not concur, the decision m ay be appealed to the Hearing**  **Board.**
**6.5 Preliminary Decision Following acceptance of an application as complete,**  **the District shall perform the evaluations required to determine compliance with t** **his Rule and make a preliminary written decision as to whether a permit to construc**  **t should be approved, conditionally approved, or disapproved.** 
**6.6 Air Quality Increment Analysis The District shall evaluate the impact on the air q**  **uality increment of the emissions from the proposed source and any offsets obtained pursua** **nt to Section 4.2 herein. Any emissions from secondary source growth associated w**  **ith the source shall be included in the determination of increment consumption. The Di**  **strict shall not grant a permit to a source which is subject to Section 4.2 herein if it**  **s emissions will exceed 50 percent of the remaining emissions increment.** 
**6.7 Review of Air Quality Increment Consumption The District shall assess the remaining air quality**  **increment at least every five years, or every two years in areas where a source subject to**  **Section 4.2 herein has been sited since the last assessment of the respective air qua**  **lity increment has occurred. The reassessment of the remaining air quality increment**  **shall be based on the changes in**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 35 **emissions including area sources and any changes in air quality background levels. The**  **emissions from major stationary sources constructed since January 6, 1975 shall be**  **included in the air quality increment consumption. Within 60 days of a determination of**  **an increment violation the District will initiate a ction to mitigate the violation.** 
**6.8 Air Quality Models All air quality models used for the purposes of thi**  **s Rule shall be consistent with the requirements specified in appendix W of 40 CFR Part**  **51 "Guidelines on Air Quality Models" unless the District finds that such a model**  **is inappropriate for use. However, the District, on a case-by-case basis, may approve**  **alternate models with the concurrence of the United States Environmental Protection Agenc**  **y after allowing for a public comment period. Credit shall not be given for stac**  **ks higher than that dictated by good engineering practice. All modeling costs associate**  **d with the siting of a stationary source shall be borne by the applicant.** 

**6.9 Publication and Public Comment Within ten calendar days following a preliminary de**  **cision pursuant to Section 1.3 or Part 4 or Part 5 of this Rule, where the emission l**  **evels are greater than or equal to those threshold limits listed for Sections 4.2 or 5.3; or**  **within ten calendar days following a preliminary decision pursuant to Subsection 1.3.2.1**  **; or within ten calendar days following a preliminary decision on a source's appl**  **ication for a modification pursuant to Section 2.33.5, the District shall publish in at le**  **ast one newspaper of general circulation in the District a notice stating the preliminary de**  **cision of the District, noting how the pertinent information can be obtained, and inviting** **written public comment for a 30-day period following the date of publication.** 
**6.10 Public Inspection The District shall make available for public inspec**  **tion at the District's office the information submitted by the applicant and the Dist** **rict's analysis no later than the time the notice of the preliminary decision is published**  **, pursuant to Section 6.9 herein. No later than the noticed date, all such information,**  **including the proposed permit, shall be transmitted to the Air Resources Board, the United**  **States Environmental Protection Agency, and any other interested public agency or p**  **arty requesting it.**
**6.11 Authority to Construct, Final Action Within 180 days after acceptance of an application**  **as complete, the District shall take final action on the application after considering a**  **ll written comments. The District shall provide written notice of the final action to the a**  **pplicant, the United States Environmental Protection Agency, and the Air Resour**  **ces Board, and shall publish such notice in a newspaper of general circulation and sh**  **all make the notice and all supporting documents available for public inspection at the Di**  **strict's office. The District must provide a copy of the final permit to EPA.** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 36 **6.12 Requirements, Permit to Operate As a condition for the issuance of a Permit to Oper**  **ate, the District shall require that the new source or modification, and any sources which p**  **rovide offsets, be operated in the manner assumed in making the analysis to determine**  **compliance with this Rule, or as conditioned in the Authority to Construct. The Per**  **mit to Operate shall include specific emissions limitations which reflect BACT.**  **6.12.1 The operation of any stationary source which provides offsets shall be subject to** 

**enforceable permit conditions, containing specific emissions limitations, to ensure**  **that the emissions reductions will be provided in a ccordance with the provisions**  **of this Rule and shall continue for the reasonable expected life of the proposed**  **source. The emission reductions used for offset pu rposes must be certified,**  **approved and registered by the District in the ERC Registry, unless the emission**  **reductions are made at the same time as the permit application is made and on-site**  **at the same stationary source. The emission reduct ions must be surplus,**  **quantifiable, real, permanent, and enforceable. 6.12.2 Where the source of offsets is not subject to**  **a District permit, a District permit**

**with enforceable permit conditions, containing spec ific emission limitations, must**  **be obtained by the recipient of such offsets. A wr itten agreement shall be required**  **between the applicant and the owner or operator of such a source of offsets, which**  **agreement, by its terms, shall be enforceable by th e District as a third party**  **beneficiary. Any breach of such an agreement sha ll be a violation of this Rule.**  **The permit and agreement shall be submitted to the California Air Resources**  **Board to be forwarded to the United States Environm ental Protection Agency as**  **part of the State Implementation Plan.**
**6.13 Issuance, Permit to Operate The District shall issue a Permit to Operate to a s**  **tationary source subject to the requirements of this Rule if it is determined that**  **all offsets required as a condition of an Authority to Construct or amendment to a Permit to**  **Operate, will commence not later than the initial operation of the new or modified s**  **ource, and that the offsets shall be maintained throughout the operation of the new or m**  **odified source which is the beneficiary of the offsets. Further, a Permit to O**  **perate shall not be issued unless the source has complied with all conditions specified o**  **n the Authority to Construct, unless the District approves the incorporation of the unme**  **t Authority to Construct conditions into the Permit to Operate.**  **6.13.1 Where a new or modified stationary source is, in whole or in part, a replacement** 

**for an existing stationary source on the same prope rty, the District may allow a**  **maximum of 90 days as a startup period for simultan eous operation of the existing**  **stationary source and the new source or replacement**

**.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 37 **6.14 Regulations in Force will Govern The granting or denial of an Authority to Construct**  **shall be governed by the requirements of this Rule in force on the date the**  **application is deemed complete.**

**PART 7 CALCULATIONS**

**7.1 Determination of the Potential to Emit The maximum design capacity of a new stationary sou** **rce or modification shall be used to determine the potential to emit from the new sou** **rce or modification. However, the applicant may agree to limitations on the operation**  **s on the new source or modification. If those limitations are included in both Authoriti**  **es to Construct and Permits to Operate issued according to New Source Review, then those l**  **imitations shall be used to establish the potential to emit from the new source**  **or modification.**
**7.2 Historical Emissions from Existing Sources The emissions from an existing source shall be the**  **historical emissions based on the actual operating conditions of the existing source**  **averaged over the three consecutive years immediately preceding the date of application** 

**. 7.2.1 In cases where the existing source has not bee**  **n in operation for three consecutive years or under unusual circumstances, a shorter per** **iod or three consecutive years within the five-year period immediately preceding t** **he date of application that best represent the normal source operations may be appli**  **cable and approved by the District.**  **7.2.2 If violations of laws, rules, regulations, per mit conditions, or orders of the District,**  **the California Air Resources Board, State or the Un ited States Environmental**  **Protection Agency occurred during the period used t o determine the operating**  **conditions, then adjustments to the operating condi tions shall be made to determine**  **the emissions the existing source would have caused without such violations.** 
**7.3 General Stationary Source Calculations The increase in emissions from new stationary sourc**  **es and modifications which are not seasonal sources shall be determined using quarterl**  **y emissions profiles. 7.3.1 Quarterly emissions profiles for an existing o**  **r proposed stationary source or modification shall be constructed by plotting the a** **verage daily emissions from such a source.**  **7.3.2 A separate profile shall be constructed for ea ch pollutant.** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 38 **7.3.3 The increase in emissions from a modification to an existing source shall be** 

**determined by comparing the quarterly emissions pro files for the existing source to**  **the quarterly emissions profiles for the proposed s ource after modification. An**  **increase in emissions exists whenever any part of a n emissions profile for a modified**  **source exceeds the emissions profile for the existi ng source.**  **7.3.4 The emissions from all marine vessels which lo ad or unload at the stationary source**  **shall be considered as emissions from the stationar y source (as defined in Section**  **2.60 herein) while such vessels are operating in Di strict waters and in California**  **coastal waters adjacent to the District.**
**7.3.4.1 The emissions from marine vessels shall incl ude volatile organic compounds** 

**that are displaced into the atmosphere; fugitive em issions; combustion**  **emissions in District waters; and emissions from lo ading and unloading of**  **cargo. 7.3.5 The emissions from all trains dedicated to a s**  **pecified stationary source, while operating in the air basin, including directly emit** **ted and fugitive emissions, shall be considered as emissions from the stationary source.** 
**7.4 Increases in Emissions: Calculation Requirement s for BACT and Offsets**  **7.4.1 Emissions profiles for new sources or modified sources shall be based on the**  **potential to emit as described under Section 7.1 he rein. Emissions profiles for**  **existing sources shall be based on the historical e missions as described under Section**  **7.2 herein. Comparison of emissions profiles shall be done in accordance with the**  **provisions of Sections 7.3 and 7.5 herein 7.4.2 The new emissions increase, as defined in Sect**  **ion 2.37 herein, occurring after October 20, 2010 for PM**  **2.5 or after August 19, 1983 for PM**  **10 or after July 18, 1976**  **for any other affected pollutant, shall be used to determine BACT requirements for**  **any new source or for any modifications to an exist ing source.**  **7.4.3 The net emissions increase, as defined in Sect ion 2.36 herein, shall be used to**  **determine offset requirements for any new source or for any modifications to an**  **existing source. 7.4.3.1 When computing the net emissions increases f**  **or modifications, the District shall take into account the emissions increases and**  **decreases, excluding any emissions reductions required to comply with federa**  **l, State, Air Resources Board, or District law, rules, regulations, agreeme**  **nts, or orders, and also excluding any reductions of emissions which were or** **iginally permitted under the provisions of any exemption contained in Sectio**  **n 1.3. All emissions decreases used in computing the net emissions incre**  **ase shall be incorporated into the Authority to Construct and Permit to Opera** **te.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 39 **7.5 Increases in Emissions: Seasonal Source Calcula tions**  **The increase in emissions from new stationary sourc es and modifications which are**  **seasonal sources shall be determined using quarterl y emissions profiles.**  **7.5.1 Quarterly emissions profiles shall be construc ted by plotting the average daily**  **emissions from an existing or proposed seasonal sou rce for the continuous 90-day**  **period during which the greatest emissions from the proposed new or modified**  **source will occur. 7.5.2 A separate profile shall be constructed for ea**  **ch pollutant.**
**7.5.3 The increase in emissions from a modification to an existing seasonal source shall be**  **determined by comparing the quarterly emissions pro files for the existing source to**  **the quarterly profiles for the proposed source afte r modification. An increase in**  **emissions exists whenever any part of an emissions profile for the modified source**  **exceeds the emissions profile for the existing sour ce.** 
**7.6 Calculation Requirements for Emissions Reduction s**  **7.6.1 Emissions profiles for new sources or modified sources shall be based on the**  **potential to emit as described under Section 7.1 he rein. Emissions profiles for**  **existing sources shall be based on the historical e missions as described under**  **Section 7.2 herein. Comparison of emissions profil es shall be done in accordance**  **with the provisions of Sections 7.3 and 7.5 herein.**

**PART 8 POWER PLANTS**

**8.1 General Part 8 shall apply to all power plants proposed to**  **be constructed in the District and for which a Notice of Intention (NOI) or Application fo**  **r Certification (AFC) has been accepted by the California Energy Commission. The**  **District may apply for reimbursement of all costs incurred, including lost**  **fees, in order to comply with the provisions of this Part.** 
**8.2 Intent to Participate and Preliminary Report Within 14 days of receipt of an NOI, the District s**  **hall notify the Air Resources Board and the California Energy Commission of the Distric**  **t's intent to participate in the NOI proceeding. If the District chooses to participate**  **in the NOI proceeding, the District shall prepare and submit a report to the Air Resour**  **ces Board and the California Energy Commission prior to the conclusion of the nonadjudi**  **catory hearing specified in Section 25509.5 of the Public Resources Code. That report**  **shall include, at a minimum:**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 40 **8.2.1 a preliminary specific definition of best avai lable control technology (BACT) for the** 

**proposed source; and, 8.2.2 a preliminary discussion of whether there is s**  **ubstantial likelihood that the requirements of this Rule and all other District re**  **gulations can be satisfied by the proposed source;**  **8.2.3 a preliminary list of conditions which the pro posed source must meet in order to**  **comply with this Rule or any other applicable Distr ict regulation. The preliminary**  **determination contained in the report shall be as s pecific as possible within the**  **constraints of the information contained in the NOI**

**. 8.3 Determination of Compliance Review**  **Upon receipt of an AFC for a power plant, the Distr ict shall conduct a determination of**  **compliance review. This determination shall consis t of a review identical to that which**  **would be performed if an application for an Authori ty to Construct had been received**  **for the power plant. If the information contained in the AFC does not meet the**  **requirements of this Rule, the District shall, with in 20 calendar days of receipt of the**  **AFC, so inform the California Energy Commission, an d the AFC shall be considered**  **incomplete and returned to the applicant for resubm ittal.** 
**8.4 Equivalency of AFC for an Authority to Construct The District shall consider the AFC to be equivalen** **t to an application for an Authority to Construct during the determination of compliance**  **review, and shall apply all provisions of this Rule which apply to applications**  **for an Authority to Construct.**

**8.5 Need for Additional Information The District may request from the applicant any inf**  **ormation necessary for the completion of the determination of compliance revie**  **w. If the District is unable to obtain the information, the District may petition t** **he presiding Commissioner for an order directing the applicant to supply such inform**  **ation.**
**8.6 Preliminary Determination Within 180 days of accepting an AFC as complete, th**  **e District shall make a preliminary decision on:**  **8.6.1 whether the proposed power plant meets the req uirements of this Rule and all other**  **applicable District regulations, and, 8.6.2 in the event of compliance, what permit condit**  **ions will be required including the specific BACT requirements and a description of req**  **uired mitigation measures.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 41 **The preliminary written decision under Section 8.6 of this Rule shall be treated as a**  **preliminary decision under Section 6.5 herein, and shall be finalized by the District only**  **after being subject to the public notice and commen t requirements of Sections 6.4, 6.5,**  **and 6.9 herein. The District shall not issue a det ermination of compliance unless all**  **requirements of this Rule are met.**
**8.7 Determination of Compliance Within 240 days of the filing date, the District sh**  **all issue and submit to the California Energy Commission a determination of compliance or,**  **if such a determination cannot be issued, shall so inform the California Energy Co**  **mmission. A determination of compliance shall confer the same rights and privile**  **ges as a Authority to Construct permit only when and if the California Energy Commi**  **ssion approves the AFC, and the California Energy Commission certificate includes a**  **ll conditions of the determination of compliance.** 
**8.8 Permit to Operate Any applicant receiving a certificate from the Cali**  **fornia Energy Commission pursuant to this Section and in compliance with all conditio**  **ns of the certificate shall be issued a Permit to Operate by the District.** 

**PART 9 SOURCE IMPACT ANALYSIS**
**9.1 Air Quality Impact Analysis The table in Section 9.4 herein is provided as a sc**  **reening method to estimate the worst case air quality impact of carbon monoxide, particu**  **late matter, oxides of sulfur and oxides of nitrogen of a proposed point source witho**  **ut the use of sophisticated modeling techniques.**  **Modeling shall be used instead of the table if in t he judgement of the District any of the**  **following apply: the pollutant is an oxidant; anot her source with unknown impact is**  **being constructed in the affected area; the impact obtained by using the table indicates**  **concentrations will be near the national or state a mbient air quality standards; the**  **proposed source will be located in complex terrain; the source will have a volume flow**  **rate less than 10 cubic meters per second; the stac k exit gas temperature is less than**  **360°K; or, the physical size of the stack is greate r than 100 meters. In such instances the**  **models, data bases, and other requirements specifie d in appendix W of 40 CFR Part 51**  **"Guidelines on Air Quality Models" must be used.**MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 42 **9.2 Downwind Concentrations Using the air quality impact table in Section 9.4 h**  **erein, the estimated downwind concentrations are determined by reading the value**  **which corresponds to the actual stack height and source strength of the proposed so**  **urce. The table also provides the estimated distance from the source to the point of**  **maximum ground level impact. If the precise actual stack height for the proposed source**  **is not listed, interpolation can be used to determine the approximate downwind concentr**  **ations.**
**9.3 Example Calculations**
**To determine the downwind concentrations attributab le to a proposed source with an**  **actual stack height of 45 meters and a source stren gth of 137 pounds per hour:**  **a. use 40 meter stack height; b. consider that the source strength lies between ma** **ximum one hour concentration values for 120 lb/hr = 1300 ug/m**  **3 and 140 lb/hr = 120 lb/hr + 20 lb/hr = 1300 ug/m**  **3 + 220 ug/m**  **3 = 1520 ug/m**  **3 ; and,**  **c. interpolate such that x ug/m**  **3 = ((137-120)(1520 - 1300)/(140 - 120)) + 1300**  **= 1487 ug/m 3**  **(this estimated maximum one-hour concentration for the**  **proposed 137-lb/hr source is to be added to ambient concentration**  **levels). Values for maximum concentrations for 3-hour, 8-hou** **r, and 24-hour time periods may be obtained by multiplying the 1-hour concentration**  **s by following factors: 3-hour = 0.9; 8-hour = 0.8; and, 24-hour = 0.4.** 
**9.4 Air Quality Impact Table The following table provides the worst case estimat**  **es of point source air quality impacts:** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 43 **Estimated Maximum 1-hr Concentrations (ug/m3)**

**for Listed Source Strengths**
**Stack Height**  **(m) Downwind** 

**Distance** ***** **(m) 5 lb/hr 10 lb/hr 20 lb/hr 40 lb/hr 80 lb/hr 120 lb/hr** 

**5 100 3150 6300 12800 25200 50400 75700 10 100 945 1890 3840 7560 15120 22700**  **15 150 380 760 1530 3020 6040 9080 20 200 220 440 900 1760 3530 5300**  **30 300 90 190 380 760 1510 2270 40 200 to 400 50 110 220 430 870 1300**  **50 250 to 450 40 70 150 290 580 880 70 350 20 40 80 170 330 500**  **100 450 10 20 40 90 190 290 NOTE: the wind speed was assumed to be 1 m/s and the e**  **ffective plume height was assumed equal to the physical stack height.** 

***** **Downwind Distances to Maximum Estimated Concentrati ons (m).** 

**PART 10 FEDERAL ENFORCEABILITY, SIP REVISIONS**
**This Part shall apply solely for the purposes of fe deral enforcement of Rule 207.** 
**10.1 Increments for Carbon Monoxide, Nitrogen Dioxid e, Hydrogen Sulfide, and Lead**  **Increments for carbon monoxide, nitrogen dioxide, h ydrogen sulfide and lead referenced**  **in Subsection 2.5.2 herein are not submitted as a p art of the SIP.** 

**10.2 Subsection 2.5.2 of this Rule For the purposes of the submittal to the United Sta** **tes Environmental Protection Agency for inclusion in the SIP, the increments of allowab**  **le air quality degradation, beyond existing air quality levels, shall be:**  **10.2.1 for Area A, the increment specified for Class I Areas in 40 CFR Part 51.166** 

**(Prevention of Significant Deterioration of Air Qua lity), and,** MONTEREY BAY UNIFIED AIR POLLUTION CONTROL DISTRICT REGULATION II PERMITS

4/20/11 Rule 207 (Review of New or Modified Sources) 

### 44 **10.2.2 for Areas B, C, D, E, and F, and Area A Impac t Zones, the increment specified for** 

**Class II Areas in 40 CFR Part 51.166.**

**10.3 Subsection 2.18.6 of this Rule**
**is not submitted as a SIP revision.**

**10.4 Section 2.21 of this Rule is not submitted as a SIP revision. For the purpos**  **es of the SIP, emissions increment means air quality increment as defined in Section 2**  **.5 herein.**

**10.5 Part 5 of this Rule**
**is not submitted as a SIP revision.** *** * * * ***