(Amended 3-10-92, 12-23-92, 8-31-93, 6-24-97)


101. Purpose:

  1. The purpose of this Rule is to establish pre-construction review requirements for new and modified stationary sources of air pollution for use of Best Available Control Technology (BACT), analysis of air quality impacts, and to ensure that the operation of such sources does not interfere with the attainment or maintenance of ambient air quality standards;
  2. This regulation shall provide for no net increase in emissions, pursuant to Section 40918 of the Health and Safety Code, from new or modified stationary sources that emit, or have the potential to emit, 25 tons per year or more of any nonattainment pollutant or its precursors.

102. Applicability:
This Rule shall apply to all new and modified stationary sources that are subject to District permit requirements, and after construction, emit or may emit any affected pollutants. The requirements of this regulation in effect at the time any application for an Authority to Construct is deemed complete shall apply.

103. Effective Date:
This Rule shall become effective on August 31, 1993.

Amended 8-31-93


For the purpose of this Rule, the definitions below shall apply:

201. Actual Emissions:
Measured or estimated emissions that most accurately represent the emissions from an emissions unit.

202. Actual Emission Reductions:
A reduction in actual emissions from an emissions unit selected for emission offsets or banking. Actual emission reductions shall be calculated pursuant to Part 400 of this Rule and meet the following criteria:

  1. Required or encumbered by any laws, rules, regulations or orders; or
  2. Attributed to a control measure noticed for workshop, or proposed or contained in a State implementation plan; or
  3. Contained as near-term measures in the adopted District Air Quality Plan for attaining annual reductions required for the California Clean Air Act (CCAA).

202.1 Actual emission reductions attributed to a proposed control measure, may be re-eligible as actual emission reductions in the following circumstances:

  1. For control measures identified in the District air quality plan or state implementation plan, no rule has been adopted within two (2) years from the scheduled adoption date provided, however, that the Air Pollution Control Officer (APCO) has not extended the scheduled adoption date;
  2. For control measures not identified in the District air quality plan or state implementation plan, no rule has been adopted within two years from the date of the latest public workshop notice.

Amended 12-23-92

203. Affected Pollutant:
An air pollutant for which an ambient air quality standard has been established by the U.S. Environmental Protection Agency (EPA) or the California Air Resources Board (ARB), the precursors to such pollutants, and those substances regulated by the EPA or the ARB, or listed under Section 301.

204. Ambient Air Quality Standards:
Ambient air quality standards shall be interpreted to include federal and state ambient air quality standards. For purposes of applicability of this Rule to the State Implementation Plan (SIP), all references to ambient air quality standards shall be interpreted as National Ambient Air Quality Standards.

205. Best Available Control Technology (BACT): For any emissions unit the more stringent of:

  1. The most effective emission control device, emission limit, or technique that has been required or used for the type of equipment comprising such emissions unit unless the applicant demonstrates to the satisfaction of the Air Pollution Control Officer (APCO) that such limitations are not achievable; or
  2. Any other emission control device or technique, alternative basic equipment, different fuel or process, determined to be technologically feasible and cost-effective by the APCO. The cost-effective analysis shall be performed in accordance with the methodology and criteria specified by the APCO;
  3. Under no circumstances shall BACT be determined to be less stringent than the emission control required by any applicable provision of District, State, or federal laws or regulations, unless the applicant demonstrates to the satisfaction of the APCO that such limits are not achievable.

206. Complete Application:
An application that contains all information required by the District to adequately evaluate the nature and extent of potential emissions of the new or modified emissions unit proposed for use in accordance with a list of required information as adopted by the District pursuant to Article 3, Sections 65940 through 65944 of Chapter 4.5 of Division 1, Title 7 of the Government Code.

207. Contiguous Property:
Two or more parcels of land with a common boundary or separated solely by a public or private roadway or other public right-of-way.

208. Cost-Effective:
A cost-per-pound of emission reduction that is deemed to be acceptable and feasible, on a pollutant and emissions unit basis, by the Air Pollution Control Officer (APCO).

209. Daily Emissions Limitation:
One or a combination of permit conditions specific to an emissions unit that restricts its maximum daily emissions in pounds per day, at or below the emissions associated with the maximum design capacity. A daily emissions limitation must be:

210. Emissions Unit:
An identifiable operation or piece of process equipment such as an article, machine, or other contrivance that emits, may emit, or results in the emissions of any affected pollutant directly or as fugitive emissions.

211. Fluorides:
Elemental fluorine and all fluoride compounds.

212. Fugitive Emissions:
Those emissions that could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening.

213. Halogenated Hydrocarbons:
For the purposes of this rule, halogenated hydrocarbons are 1,1,1-trichloroethane, methylene chloride, trichlorofluoromethane (CFC-11), dichlorodifluoromethane (CFC-12), chlorodifluoromethane (HCFC-22), trifluoromethane (HFC-23), 1,1,1-trichloro-2,2,2-trifluoroethane (CFC-113), -chloro-1,1-difluro-2-chloro-2,2-difluoroethane (CFC-114), chloropentafluoroethane (CFC-115), 2,2-dichloro-1,1,1-trifluoroethane (HCFC-123), 2-chloro-1,1,1,2-tetrafluoroethane (HCFC-124), pentafluoroethane (HFC-125), 1,1,2,2-tetrafluoroethane (HFC-134), 1,1,1,2-tetrafluoroethane (HFC-134a), 1,1-dichloro-1-fluoroethane (HCFC-141b), 1-chloro-1,1-difluoroethane (HCFC-142b), 1,1,1-trifluoroethane (HFC-143a), 1,1-difluoroethane (HFC-152a), and the following four classes of perfluorocarbon (PFC) compounds:

Perfluorocarbon compounds will be assumed to be absent from a product or process unless a manufacturer or facility operator identifies the specific individual compounds (from the broad classes of perfluorocarbon compounds) and the amounts present in the product or process and provides a validated test method which can be used to quantify the specific compounds.

214. Impact Analysis:
An air quality modeling analysis used to estimate the maximum ground level concentration of any pollutant subject to this Rule. Maximum ground level concentration added to background levels shall be compared to ambient air quality standards.

215. Modification:
Any physical change or operational change to an existing emissions unit, including changing hours of operation or production rate, that would necessitate a change in permit conditions. A modification to a stationary source shall include any modification of its permitted emissions units or addition of any new emissions units. A reconstructed stationary source shall be treated as a new stationary source and not as a modification.

The following shall not be considered a modification:

216. Net Air Quality Benefit:
A net improvement in air quality resulting from actual emission reduction impacting the same general area affected by the new or modified source.

217. Nonattainment Pollutant:
Any pollutant as well as any precursors of such pollutant, that has been designated nonattainment by the EPA in the Federal Register, or that has been designated nonattainment by the ARB pursuant to Section 39607 of the Health and Safety Code.

218. PM10:
Particulate matter with aerodynamic diameter smaller than or equal to a nominal ten (10) microns as measured by an applicable reference test method, or methods found in Article 2, Subchapter 6, Title 17, California Code of Regulations (commencing with section 94100).

219. Precursor:
Precursor means a directly emitted pollutant that, when released to the atmosphere, forms, or contributes to the formation of a secondary pollutant for which an ambient air quality standard has been adopted. The following precursor relationships shall be used:

Reactive Organic Compounds a. Photochemical Oxidants (Ozone)

b. The Organic Fraction of PM10
Nitrogen Oxides

a. Nitrogen Dioxide

b. The Nitrate Fraction of PM10

c. Photochemical Oxidants (Ozone)

Sulfur Oxides

a. Sulfur Dioxide

b. Sulfates

c. The Sulfate Fraction of PM10

220. Reactive Organic Compound (ROC or ROG):
Any compound containing carbon, except methane, carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, ammonium carbonates, and halogenated hydrocarbons.

221. Reconstructed Source:
Any source undergoing physical modification where the 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 capital needed to provide all the depreciable components.

222. Reduced Sulfur Compounds:
The sulfur compounds: hydrogen sulfide, carbon disulfide, and carbonyl sulfide.

223. Seasonal Source:
Any source with more than 75 percent of its annual emissions within a consecutive 120-day period.

224. Stationary Source (Facility):
Any building, structure, or emissions unit that emits or may emit any affected pollutant directly or as a fugitive emission. "Emissions Unit" includes any operation, article, machine, equipment or other contrivance that emits or may emit any affected pollutant. "Building or structure" includes all pollutant emitting activities including emissions units that:

225. Total Reduced Sulfur Compounds:
The sulfur compounds: hydrogen sulfide, methyl mercaptan, dimethyl sulfide and dimethyl disulfide.


Any emissions unit subject to this Rule shall be subject to the following requirements:

301. Best Available Control Technology (BACT):
An applicant shall apply BACT to any new emissions unit or modification of an existing emissions unit that results in an emission increase and the potential to emit for the emission unit equals or exceeds the following amounts:



Reactive organic compounds


Nitrogen oxides


Sulfur oxides


Particulate matter (PM10)


Carbon monoxide










Vinyl chloride




Sulfuric acid mist


Hydrogen sulfide


Total reduced sulfur compounds


Reduced sulfur compounds


302. Offset Requirements, General: (Repealed 6-24-97)

302.1 (Repealed 6-24-97)

302.2 (Repealed 6-24-97)

303. Location of Offsets and Offset Ratios: (Repealed 6-24-97)

303.1 (Repealed 6-24-97)

303.2 (Repealed 6-24-97)

304. Interpollutant Offsets: (Repealed 6-24-97)

305. PM10 Emissions:
The PM10 emissions from an existing stationary source shall be recalculated from the total suspended particulate (TSP) emissions increases and decreases that have occurred since August 20, 1983, using applicable PM10 emission factors. When applicable PM10 emission factors do not exist, it will assumed that 50 percent of TSP is PM10.

306. Ambient Air Quality Standards:
In no case shall the emissions from the new or modified stationary source cause or make worse the violation of an ambient air quality standard. An impact analysis shall be used to estimate the effects of a new or modified source. In making this determination, the APCO shall take into account the mitigation of emissions through offsets obtained pursuant to this Rule.

307. Denial, Failure to Meet Standards:
The APCO shall deny any Authority to Construct or Permit to Operate if the APCO finds that the subject of the application would not comply with the standards set forth in this Rule.

308. Compliance By Other Owned, Operated Or Controlled Sources:
The owner or operator of the proposed new or modified source shall certify to the APCO that all major stationary sources owned or operated by such person (or by any entity controlling, controlled by, or under common control with such person) in California are subject to emission limitations and are in compliance, or on a schedule for compliance, with all applicable emission limitations and standards under the Clean Air Act.

Amended 8-31-93, 6-24-97


401. Purpose: The following calculations procedures shall be used to determine:

  1. The emissions change for all new or modified emissions units; and
  2. Actual emission reductions (AERs) for all shutdowns and modified emissions units; and
  3. The cumulative emissions increase from all new and modified emissions units for a stationary source.

402. Definitions: The following terms are used in the calculations procedure and are defined as follows:

  1. Control Efficiency: The estimated control efficiency of the proposed air pollution control technology that will be incorporated, by means of an enforceable permit condition(s), in the Authority to Construct and Permit to Operate. Emission reductions attributed to lowering throughput rates or operating hours shall not be considered in determining control efficiency;
  2. Historic Actual Emissions: Actual emissions from an existing emissions unit averaged over three consecutive years immediately preceding the date of application. Where an emissions unit has been in operation for less than three years, a shorter averaging period of at least one year may be used providing it represents the full operational history of the emissions unit.
  3. Historic Emissions: The potential to emit of an existing emissions unit prior to modification. For a new emissions unit, historic emissions are equal to zero (0);
  4. Potential to Emit: The maximum daily capacity of an emission unit to emit a pollutant under its physical and operational design. Any physical or operational limitation on the daily capacity of the unit to emit a pollutant, including pollution control equipment and restrictions in hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or the effect it would have on daily emissions is incorporated into the applicable permit as an enforceable permit condition;
  5. Proposed Emissions: The potential to emit for a new or post-modification emissions unit.

403. Procedure:
The calculation procedure shall be performed separately for each pollutant and each emissions unit. Emission increases and decreases shall be calculated separately for each calendar quarter pursuant to the following procedure:

  1. Calculate the emissions change for each new or modified emissions unit and for each pollutant using section 404.

If an increase is calculated for a pollutant, follow the procedures in sections 302 and 404 to determine the amount of offsets required.

If a decrease is calculated for a pollutant, go to section 404b to determine if emission reduction credits (ERC's) are generated.

For no change in emissions, no further calculations are required.

404. Calculating Emissions Changes:

  1. Emissions Increase
    New or Modified Emissions Unit:
    The emissions change for a new or modified emissions unit shall be calculated by subtracting historic emissions from proposed emissions.

    Emissions change =(proposed emissions)-(historic emissions)

  2. Actual Emissions Reductions (AER)
    1. Shutdown of an Emissions Unit

      AER = Historic actual emissions

    2. Modification consisting solely of application of control equipment or implementation of more efficient process

      AER = (Historic actual emissions) x (control efficiency)

    3. Other Modifications

      AER = (Historic actual emissions)-(proposed emissions)

405.Determining Potential to Emit for a Stationary Source:

The potential to emit for a stationary source shall be equal to the sum of potentials to emit for Permits to Operate (or Authority to Construct for emissions units for which a permit to operate has not been issued), issued prior to March 10, 1992, for each emissions unit within a stationary source.

In addition, emissions increases from new or modified emissions units occurring on or after March 10, 1992, shall be added to the sum of potentials to emit for existing emissions units. In no case shall the potential to emit for a stationary source be adjusted for actual emissions reductions that occur after March 10, 1992.


In no case shall emissions from a new or modified emissions unit, cause or make worse the violation of an ambient air quality standard. The Air Pollution Control Officer (APCO) may require an applicant to use an air quality model to estimate the effects of a new or modified emissions unit. For the purpose of performing an impact analysis the following shall apply:

  1. Air quality models shall be consistent with the requirements contained in the most recent edition of EPA's "Guidelines on Air Quality Models, OAQPS 1.2-080" unless the APCO finds that such model is inappropriate for use. After making such a finding, the APCO may designate an alternate model only after allowing for public comment and only with the concurrence of the Air Resources Board and the Environmental Protection Agency. All modeling costs associated with the siting of a new or modified emissions unit shall be borne by the applicant;
  2. In performing an impact analysis, if the proposed stack height is higher than is dictated by good engineering practices, the actual height used for the purposes of modeling shall be calculated in accordance with good engineering practices.


The following administrative requirements shall apply to this Rule:

601. Complete Application:
The Air Pollution Control Officer (APCO) shall determine whether the application is complete not later than thirty (30) days after receipt of the application, or after such longer time mutually agreeable to the applicant and the APCO. If the APCO determines that the application is not complete, the applicant shall be notified in writing of the decision and of the required additional information.

Upon receipt of any resubmission of the application, a new 30-day period to determine completeness shall begin. Completeness of an application or resubmitted application shall be evaluated on the basis of the information requirements set forth in District regulations (adopted pursuant to Article 3, Section 65940 through 65944 of Chapter 4.5 of Division 1 of Title 7 of the Government Code) as they exist on the date on which the application or resubmitted application was received.

Upon determination that the application is complete, the APCO shall notify the applicant in writing. The APCO may, during the processing of the application, request an applicant to clarify, amplify, correct, or otherwise supplement the information submitted in the application.

602. Air Quality Models:
Only those models approved by the APCO may be used in the impact analysis.

603. Preliminary Decision:
Following acceptance of an application as complete, the APCO shall perform the evaluations required to determine compliance with this Rule and make a preliminary written decision as to whether a permit to construct should be approved, conditionally approved, or disapproved. The decision shall be supported by a written analysis.

604. Publication and Public Comment:
This section shall only apply to an emissions unit subject to the requirements of Section 302. Within ten calendar days following a preliminary decision on the Authority to Construct, the APCO shall publish in at least one newspaper of general circulation in the district a notice stating the preliminary decision of the APCO noting how pertinent information can be obtained, and inviting written public comment for a 30-day period following the date of publication. Copies of such notice shall be sent to the ARB and the EPA.

605. Public Inspections:
The APCO shall make available for public inspection at the district's office the information submitted by the applicant and the APCO's analysis no later than the time that notice of the preliminary decision is published. All such information shall also be transmitted, no later than the date of publication, to the ARB and the EPA regional office. Information submitted that contains trade secrets shall be handled in accordance with Section 6254.7 of the Government Code and relevant sections of the Administrative Code of the State of California. Further, all such information shall be transmitted, no later than the date of publication, to the ARB and the EPA regional office.

606. Authority to Construct, Final Action:
Within 180 days after acceptance of an application as complete, the APCO shall take final action on the application after considering all written comments.

The APCO shall provide written notice of the final action to the applicant, the EPA, and the ARB, and shall make the notice and all supporting documents available for public inspection at the District's office for all Authorities to Construct issued for emissions units subject to the requirements of Section 301 or 302 of this Rule.

607. Requirements, Permit to Operate:
As a condition for the issuance of a Permit to Operate, the APCO shall require that the new source or modification, and any sources that provide offsets will be operated in the manner assumed in making the analysis to determine compliance with this Rule.

The Permit to Operate shall include daily emission limitations that reflect applicable emissions limitations, including BACT.

As a condition for the issuance of a Permit to Operate, any stationary source that provides emission offsets shall be subject to enforceable permit conditions containing specific emissions limitations, and/or operational limitations that ensure the emission reductions will be provided in accordance with the provisions of this Rule and shall continue for the reasonably expected life of the proposed source.

Where the source of offsets is a non-permitted source, the District shall require the non-permitted source to obtain an enforceable permit, complete with operational and emission limitations. If the source of offsets is a permit-exempt piece of equipment, that particular source must relinquish its exempt status.

If the District, pursuant to State laws or District regulations cannot permit the source of the offsets, the source creating the offsets shall execute a legally binding contract between the applicant and the owner or operator of such offset source, which contract, by its terms, shall be enforceable by the Air Pollution Control Officer. A violation of the emission limitation provisions of any such contract shall be chargeable to the applicant.

608. Issuance, Permit to Operate:
The APCO shall issue a permit to operate for any stationary source that meets the requirements of this Rule.

Any offsets required as a condition of an Authority to Construct or amendment to a Permit to Operate shall commence not later than the initial operation of the new or modified source, and the offsets shall be maintained throughout the operation of the new or modified source that is the beneficiary of the offsets. Further, the APCO shall determine that all conditions specified in the Authority to Construct have been or will be complied with by any dates specified.

Where a new or modified stationary source is, in whole or part, a replacement for an existing stationary source on the same property, the APCO may allow a maximum of ninety (90) days as a start-up period for simultaneous operations of the existing stationary source and the new source or replacement.

609. Regulations in Force 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. In addition, the APCO shall deny a Permit to Construct for any new stationary source or modification, or any portion thereof, unless the new source or modification, or applicable portion thereof, complies with the provisions of this Rule and all other applicable District Rules and Regulations.

610. Permit Conditions:
The APCO shall have the authority to place conditions on the Authority to Construct and/or Permit to Operate that will ensure that the construction, modification, or operation of such source will comply with all applicable rules and regulations. Such conditions may include, but not be limited to hours of operation; processing parameters; periods of use; and emission limitations on an hourly, daily, or yearly basis.


701. General:
This section shall apply to all power plants proposed to be constructed in a district and for which a Notice of Intention (NOI) or Application for Certification has been accepted by the California Energy Commission (CEC). The APCO may apply for reimbursement of all costs incurred, including lost fees, in order to comply with the provisions of this section.

702. Intent to Participate and Preliminary Report:
Within fourteen days of receipt of an NOI, the APCO shall notify the ARB and the CEC of the district's intent to participate in the NOI proceeding.

If a District chooses to participate in the NOI proceeding, the APCO shall prepare and submit a report to the ARB and the CEC prior to the conclusion of the non-adjudicatory hearing specified in Section 25509.5 of the Public Resources Code. That report shall include, at minimum:

  1. A preliminary specific definition of BACT for the proposed facility; and
  2. A preliminary discussion of whether there is substantial likelihood that the requirements of this rule and all other District regulations can be satisfied by the proposed facility; and
  3. A preliminary list of conditions that the proposed facility must meet in order to comply with this rule or any other applicable District regulation. The preliminary determinations contained in the report shall be as specific as possible within the constraints of the information contained in the NOI.

703. Determination of Compliance Review:
Upon receipt of an Application for Certification (AFC) for a power plant, the APCO shall conduct a Determination of Compliance Review. This determination shall consist of a review identical to that which would be performed if an application for a Permit 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 APCO shall, within twenty calendar days of receipt of the AFC, so inform the Commission, and the AFC shall be considered incomplete and returned to the applicant for resubmission.

704. Equivalency of Application:
The APCO shall consider the AFC to be equivalent to an application for a Permit to Construct during the Determination of Compliance review, and shall apply all provisions of this rule that apply to application for a Permit to Construct.

705. Need for Additional Information:
The APCO may request from the applicant any information necessary for the completion of the Determination of Compliance review. If the APCO is unable to obtain the information, the APCO may petition the presiding commissioner for an order directing the applicant to supply such information.

706. Preliminary Determination:
Within 180 days of accepting an AFC as complete, the APCO shall make a preliminary decision on:

  1. Whether the proposed power plant meets the requirements of this Rule and all other applicable District regulations; and
  2. In the event of compliance, what permit conditions will be required, including the specific BACT requirements and a description of required mitigation measures.

The preliminary written decision under Section 706 shall be treated as a preliminary decision under Section 603 of this Rule, and shall be finalized by the APCO only after being subject to the public notice and comment requirements of Sections 604 through 606. The APCO shall not issue a Determination of Compliance unless all requirements of this Rule are met.

707. Determination of Compliance:
Within 240 days of the filing date, the APCO shall issue and submit to the Commission a Determination of Compliance or, if such a determination cannot be issued, shall so inform the CEC. A Determination of Compliance shall confer the same rights and privileges as a Permit to Construct only when and if the Commission approves the AFC, and the Commission certificate includes all conditions of the Determination of Compliance.

708. Permit to Operate:
Any applicant receiving a certificate from the CEC pursuant to this section and in compliance with all conditions of the certificate shall be issued a Permit to Operate by the APCO.