ANTELOPE VALLEY AIR QUALITY MANAGEMENT DISTRICT
 
 
 
(Adopted: 1/12/1996; Amended: 10/21/1997)
RULE 518.2
FEDERAL ALTERNATIVE OPERATING CONDITIONS
 
  1. Purpose
  1. Definitions
  1. Applicability

  2.  
    1. This rule authorizes the District Hearing Board to establish Alternative Operating Conditions (AOC) for Title V facilities. AOCs may be established for the following statute and District rules and regulations, and for federally-enforceable permit terms and conditions that are based on such statute, rules and regulations:
      1. Health & Safety Code (H&S Code) ? 41701;
      2. Rules 202, 203, 217, 218 and 221;
      3. Regulation IV, except Rules 402 and 430;
      4. Regulation VII;
      5. Regulation XI;
      6. Regulation XV; and
      7. Regulation XX, except-
  1. Modification of Applicable Requirements
  1. Establishment of Alternative Operating Conditions
    1. AOCs may be established only by the District Hearing Board upon petition relating to a specified source.
    2. A petitioner shall not receive an AOC unless all of the following circumstances exist:
      1. the petitioner is or will be in violation of any applicable requirement(s) listed in paragraph (c)(1) of this rule;
      2. due to conditions beyond the reasonable control of the petitioner, requiring compliance would result in either (1) an arbitrary or unreasonable taking of property or (2) the practical closing and elimination of a lawful business. In making those findings pursuant to paragraph (4) where the petitioner is a public agency, the Hearing Board shall consider whether or not requiring immediate compliance would impose an unreasonable burden upon an essential public service. For purposes of this subparagraph, "essential public service" means a prison, detention facility, police or fire-fighting facility, school, health care facility, landfill gas control or processing facility, sewage treatment works, or water delivery operation, if owned and operated by a public agency;
      3. the closing or taking would be without a corresponding benefit in reducing air contaminants;
      4. the petitioner for the AOC has given consideration to curtailing operations of the source in lieu of obtaining an AOC;
      5. during the period the AOC is in effect, the petitioner will reduce excess emissions to the maximum extent feasible;
      6. during the period the AOC is in effect, the petitioner will monitor or otherwise quantify emission levels from the source, and report these emission levels to the District pursuant to a schedule established by the District;
      7. the AOC will not result in noncompliance with the requirements of any NSPS, NESHAP or other standard promulgated by the USEPA under 42 U.S.C. ? ? 7411 and 7412 (Federal Clean Air Act ? 111 or ? 112 ), or any standard or requirement promulgated by the USEPA under Titles IV or VI of the Clean Air Act, or any requirement contained in a permit issued by the USEPA, or other requirement contained in paragraph (c)(2); and
      8. any emissions (calculated pursuant to subparagraph (h)(3)(B) of this rule) resulting from the AOC will not, in conjunction with emissions (calculated pursuant to subparagraph (h)(3)(B)) resulting from all other AOCs established by the Hearing Board and in effect at the time, cause an exceedance of the monthly or annual SIP Allowance established pursuant to subdivision (i) of this rule.
    3. The Hearing Board shall not establish an AOC unless the Board establishes, as part of the AOC, enforceable alternative emission limits, operational requirements, and/or monitoring and record keeping provisions, as set forth in subdivision (g).
    4. The Hearing Board shall not establish an AOC unless it makes findings that the circumstances described in paragraph (e)(2) exist. The findings shall be based on evidence in the record of a public hearing which is noticed and conducted in compliance with H&S Code ? ? 40820-40865, except in the case of an AOC established by the Board or a single member thereof under circumstances specified in H&S Code ? 42359 or ? 42359.5. An AOC established by the Board under circumstances specified in H&S Code ? 42359 shall be based on evidence in the record of a public hearing which is conducted pursuant to H&S Code ? ? 40820, 40822, and 40828-40865. An AOC established by a single Board member under circumstances specified in H&S Code ? 42359.5 shall be based on evidence presented in the form of a petition and declaration signed under penalty of perjury, and may be supplemented by sworn oral testimony.
    5. The Hearing Board may deny a petition for an AOC if excess emissions resulting from operation of a source pursuant to the AOC would, by themselves, cause an exceedance of a National Ambient Air Quality Standard. The burden of proof on this issue, should it arise, shall be upon the APCO.
  2. USEPA Objection; Effective Date of Alternative Operating Condition
    1. Each AOC shall be subject to review for forty five (45) days by the public, any affected state, and the USEPA. The review period may commence prior to approval of the AOC by the Hearing Board and, in such event, will satisfy this subdivision if the terms of the AOC approved by the Hearing Board do not significantly deviate from the proposed terms which were made available to the public, affected states, and the USEPA.
    2. If the terms of the AOC approved by the Hearing Board significantly deviate from proposed terms released for review, the approved terms must be subjected to the notice requirements of paragraphs (f)(3) and (f)(4) and the process requirements of paragraph (f)(5).
    3. The forty five (45) day review period shall commence upon the USEPA’s receipt of the following information:
      1. a copy of the proposed or issued AOC;
      2. information sufficient to support the findings set forth in subdivision (e); and the name of any affected state as defined in subdivision (b) of Rule 3000 - General.
    4. Notification to the public and affected states shall commence upon the date of notice as specified in Rule 3006 - Public Participation, including publication in a daily newspaper of general circulation.
    5. If USEPA objects to the AOC in writing within the forty five (45) day review period, in the manner set forth in paragraph (k)(1) of Rule 3003 - Applications--
  1. Content of Alternative Operating Conditions
  2. Each AOC shall contain the following provisions, as applicable:
     
    1. Emission Limits

    2. If an AOC allows emissions that are greater than an emission limit in an applicable requirement, the Hearing Board shall establish an enforceable alternative emission limit which requires the source to reduce excess emissions to the maximum extent feasible. The Hearing Board may establish an alternative emission limit for any source located at the facility which creates emissions of the subject pollutant that may feasibly be reduced.
    3. Operational Requirements

    4. If an AOC allows deviation from an applicable operational requirement which is designed to limit or minimize emissions, the Hearing Board shall establish an enforceable alternative operational requirement or emission limit which requires the source to operate in a manner that reduces excess emissions to the maximum extent feasible. The Hearing Board may establish an alternative operational requirement or emission limit for any source located at the facility which creates emissions of the subject pollutant that may feasibly be reduced.
    5. Monitoring, Recordkeeping, and Reporting Requirements

    6. If the AOC allows deviation from an applicable emissions monitoring, recordkeeping or reporting requirement, the Hearing Board shall establish an enforceable alternative requirement which, to the extent feasible:
      1. mandates quantification, recordkeeping, and reporting of emissions as accurately, expeditiously, and verifiably as the applicable requirement,
      2. complies with the requirements of paragraph (a)(4) of Rule 3004 - Permit Type and Content, and for RECLAIM sources, complies with the RECLAIM protocols for monitoring, recordkeeping, and reporting.
    7. Conditions

    8. The Hearing Board shall impose conditions, other than those imposed by applicable requirements, which are necessary to ensure quantifiability of emissions increases, and any decreases, resulting from the AOC.
    9. Stringency

    10. Any alternative requirement or other condition imposed pursuant to this subdivision shall not be more stringent than an applicable requirement, except when consented to by the petitioner for purposes of excess emissions mitigation.
    11. Term

    12. Each AOC established by the Hearing Board shall include a term during which the AOC shall be in effect. The term shall be determined in accordance with H&S Code  ? ? 42352 and 42358. Upon termination of the AOC, the source shall comply with all applicable requirements and the preexisting permit term(s) shall have full force and effect.
       
    13. USEPA Objection

    14. Each AOC shall contain a provision stating that if the USEPA objects to the AOC within forty five (45) days, the AOC is ineffective to protect the petitioner from USEPA or citizen enforcement under the federal Clean Air Act for any federally enforceable requirement.
       
  3. Emissions Calculations

  4. For purposes of determining whether or not the SIP Allowance is exceeded, as set forth in subparagraph (e)(2)(H) of this rule, the amount of excess emissions resulting from establishment of an AOC, and the amount of any emission reductions resulting from conditions included in the AOC, shall be determined in the following manner:
    1. Excess Emissions

    2. Excess emissions from the source which is or will be in violation of an applicable requirement shall be calculated as follows:
      1. calculate calendar monthly mass emissions allowed by the applicable requirement based on the terms of the applicable requirement and projected activity during the term of the AOC;
      2. calculate calendar monthly mass emissions allowed by the AOC based on any alternative emission limits, operational requirements and other conditions established pursuant to subdivision (g), and projected activity during the term of the AOC; and
      3. subtract the calendar monthly mass emissions calculated pursuant to subparagraph (A) from the calendar monthly mass emissions calculated pursuant to subparagraph (B).
    3. Emission Reduction

    4. The amount of emission reduction from a source other than the source which is or will be in violation of an applicable requirement, shall be calculated as follows:
    1. SIP Allowance Balance Determination
      1. The Hearing Board will maintain a record of the balance of emissions in the SIP Allowance for each calendar month.
      2. The amount of emissions that will be debited as a result of an AOC will be determined by subtracting the emission reduction calculated pursuant to paragraph (2), and the amount of any emission reduction credits temporarily surrendered by the petitioner pursuant to paragraph (5), from excess emissions calculated pursuant to paragraph (1). Emissions calculated pursuant to this subparagraph shall be subtracted from the monthly and annual SIP Allowance balance for the applicable period.
    2. The petitioner shall notify the Hearing Board within five (5) days after achieving continuous compliance with an applicable requirement for which an AOC has been issued. Upon notification, the AOC for that applicable requirement shall expire. Any unused emissions previously allocated to a petitioner will be restored by the Hearing Board to the SIP Allowance balance for the same period from which they were originally debited.
    3. For non-RECLAIM sources, and non-RECLAIM pollutants at RECLAIM sources, the amount of excess emissions calculated pursuant to paragraph (h)(1) may be reduced by the amount of emission reduction credits or offsets approved pursuant to Regulation XIII - New Source Review, which the facility voluntarily relinquishes for the term of the AOC. Relinquishment of ERCs shall not be deemed to satisfy the requirements of subparagraph (e)(2)(E). APCO will not issue a Permit to Construct which relies upon ERCs relinquished pursuant to this paragraph during the period for which such ERCs have been relinquished. The APCO shall not discount the value of ERCs due to relinquishment pursuant to this paragraph.
    4. An AOC applicable to RECLAIM pollutants emitted by a RECLAIM source shall be deemed to not result in any excess emissions for purposes of this subdivision. This paragraph does not relieve a RECLAIM facility of any obligation pursuant to Regulation XX - RECLAIM.
  1. SIP Allowance
  2. The monthly and annual SIP Allowance for each air contaminant shall be the following amounts:
 
Air Contaminant
Maximum Annual Allowance
Lb.
Maximum Monthly Allowance
Lb.
VOC
197,000 34,000
NOx
7,000
650
PM10
28,000
7,000
SOx
4,200
350
CO
19,000
1,200
 
  1. Compliance with Alternative Operating Condition
  2. Any source which is subject to an AOC shall comply with such condition at all times during its term. Any violation of a permit term or condition implementing an AOC shall constitute a separate violation of this rule for each day of violation.
  3. Fees
  4. Fees for AOCs will be assessed pursuant to Regulation III - Fees.
  5. Effective Date of Rule
  6. This rule shall be effective upon approval by the USEPA of Regulation XXX - Title V Permits, under Title V of the Clean Air Act, and USEPA approval into the SIP of this rule and a revision to the SIP establishing SIP Allowance for AOCs.