KERAPCD RULE 201.1 PERMITS OPERATE FOR SOURC. SUBJ. TITLE V          
LAST REVISED 11/01/93          
          
          
          RULE 201.1 Permits to Operate for Sources Subject to Title V
                     of the Federal Clean Air Act Amendments of 1990
                     - Adopted 11/01/93
                
          NOTE:  Italicized terms are defined in Section II.

          I.    Purpose and General Requirements of Rule

                Rule 201.1 is intended to implement requirements of Title V
                of the Federal Clean Air Act amendments of 1990 (CAA) for
                permits to operate.  Title V requires operating permits for
                certain sources emitting regulated air pollutants,
                including attainment and non-attainment pollutants.  The
                effective date of Rule 201.1 is the date the United States
                Environmental Protection Agency (U.S. EPA) promulgates
                interim or final approval of this rule in the Federal
                Register.

                By the effective date of Rule 201.1, the Kern County Air
                Pollution Control District shall implement an operating
                permits program pursuant to the requirements of this Rule.
                Requirements of this rule shall augment and take precedence
                over any conflicting administrative requirements of any
                other provisions of Kern County APCD's Rules and
                Regulations.  The District shall also continue to implement
                its existing Rule 201 Permits program, including
                Authorities to Construct, and Rule 210.1 New Source Review
                program.  Nothing in Rule 201.1 limits the authority of the
                Air Pollution Control Officer (APCO) of the District to
                revoke or terminate a Rule 201 permit pursuant to
                Section 42307-42309 and Section 40800 et seq. of the
                California Health and Safety Code (H&SC) (permit systems).

                Sources subject to Rule 201.1 include major sources, acid
                rain units subject to Title IV of the CAA, solid waste
                incinerators subject to Section 111 or 129 of the CAA, and
                any other sources specifically designated by Rule of the
                U.S. EPA.  Sources subject to this Rule shall obtain
                permits to operate issued pursuant to this Rule,  and, each
                such permit to operate issued shall contain conditions and
                requirements adequate to ensure compliance with and
                enforceability of:

                A. All applicable provisions of Division 26 of the H≻

                B. All applicable orders, rules, and regulations of the
                   District and the California Air Resources Board (CARB);

                C. All applicable provisions of the implementation plan
                   required by the CAA;

                D. Each applicable emission standard or limitation, rule,
                   regulation, or requirement adopted or promulgated to
                   implement the CAA; and

                E. All requirements of all preconstruction permits issued
                   pursuant to Parts C and D of the CAA (PSD and NSR).

                Operation of an emissions unit in violation of any
                applicable permit condition or requirement shall constitute
                a violation of this Rule.

          II.   Definitions

                Definitions in this section apply throughout this Rule and
                are derived from related provisions of U.S. EPA's Title V
                regulations in Part 70 Code of Federal Regulations (CFR),
                "State Operating Permit Programs."  Terms defined in this
                section are italicized throughout the Rule.

                A. Acid Rain Unit - any fossil fuel-fired combustion device
                   constituting an affected unit under 40 CFR Part 72.6 and
                   therefore subject to requirements of Title IV (Acid
                   Deposition Control) of the CAA.

                B. Administrative Permit Amendment - amendment to a permit
                   to operate, including:

                   1.  Correcting a typographical error;

                   2.  Identifying a minor administrative change at the
                       stationary source; for example, a change in name,
                       address, or phone number of any person identified in
                       the permit;

                   3.  Requiring more frequent monitoring or reporting by
                       an owner or operator of the stationary source; or

                   4.  Transferring ownership or operational control of a
                       stationary source, provided, prior to transfer, the
                       APCO receives a written agreement specifying a date
                       for transfer of permit responsibility, coverage, and
                       liability from current to prospective permittee.
                C. Affected State - any state: 1) contiguous with
                   California and whose air quality may be affected by a
                   permit action, or 2) within 50 miles of the source
                   proposing a permit action.

                D. Air Pollution Control Officer (APCO) - Kern County Air
                   Pollution Control District Air Pollution Control
                   Officer, or his designee.

                E. Applicable Federal Requirement - any requirement
                   enforceable by the U.S. EPA and citizens pursuant to
                   Section 304 of the CAA and set forth in, or authorized
                   by, the CAA or a U.S. EPA regulation, including any
                   requirement of a regulation in effect at permit issuance
                   and any requirement of a regulation  becoming effective
                   during the term of the permit.  Applicable federal
                   requirements include:

                   1.  Title I requirements of the CAA, including:

                       a.  New Source Review requirements in the State
                           Implementation Plan approved by the U.S. EPA and
                           terms and conditions of a preconstruction permit
                           issued pursuant to an approved New Source Review
                           rule;

                       b.  Prevention of Significant Deterioration (PSD)
                           requirements and terms and conditions of a PSD
                           permit (40 CFR Part 52);

                       c.  New Source Performance Standards (40 CFR
                           Part 60);

                       d.  National Ambient Air Quality Standards,
                           increments, and visibility requirements as they
                           apply to portable sources required to obtain a
                           permit pursuant to Section 504(e) of the CAA;

                       e.  National Emissions Standards for Hazardous Air
                           Pollutants (40 CFR Part 61);

                       f.  Maximum Achievable Control Technology (MACT) or
                           Generally Available Control Technology Standards
                           (GACT) (40 CFR Part 63);

                       g.  Risk Management Plan Preparation and
                           Registration Requirements (Section 112(r) of the
                           CAA);

                       h.  Solid Waste Incineration requirements
                           (Sections 111 or 129 of the CAA);

                       i.  Consumer and Commercial Product requirements
                           (Section 183 of the CAA);
                       j.  Tank Vessel requirements (Section 183 of the
                           CAA);

                       k.  District prohibitory rules approved into the
                           State Implementation Plan;

                       l.  Standards or regulations promulgated pursuant to
                           a Federal Implementation Plan; and

                       m.  Enhanced Monitoring and Compliance Certification
                           requirements (Section 114(a)(3) of the CAA).

                   2.  Title IV (Acid Deposition Control) requirements of
                       the CAA (40 CFR Parts 72, 73, 75, 76, 77, 78 and
                       regulations implementing Sections 407 and 410 of the
                       CAA);

                   3.  Title VI (Stratospheric Ozone Protection)
                       requirements of the CAA (40 CFR Part 82); and

                   4.  Monitoring and Analysis requirements
                       (Section 504(b) of the CAA).

                F. California Air Resources Board (CARB) - Air Resources
                   Board of the California Environmental Protection Agency

                G. Clean Air Act (CAA) - Federal Clean Air Act as amended
                   in 1990 (42 U.S.C. Section 7401 et seq.).

                H. Code of Federal Regulations (CFR) - United States Code
                   of Federal Regulations.

                I. Commence Operation -  date of initial operation of an
                   emissions unit, including any start-up period authorized
                   by a temporary permit to operate issued pursuant to
                   Section 42301.1 of the H&SC.

                J. Direct Emissions - emissions that may reasonably pass
                   through a stack, chimney, vent, or other functionally-
                   equivalent opening.

                K. District - Kern County Air Pollution Control District.

                L. Effective Date of Rule 201.1 - date (June 2, 1995) the
                   U.S. EPA promulgates interim or final approval of the
                   rule in the Federal Register.

                M. Emergency - any situation arising from a sudden and
                   reasonably unforeseeable event beyond control of a
                   permittee causing exceedance of a technology-based
                   emission limitation under a permit and requiring
                   immediate corrective action to restore compliance.  An
                   emergency shall not include noncompliance resulting from
                   improperly designed equipment, lack of preventive
                   maintenance, careless or improper operation, or operator
                   error.

                N. Emissions Unit - any identifiable article, machine,
                   contrivance, or operation which emits, may emit, or
                   results in emissions of, any regulated air pollutant or
                   hazardous air pollutant.

                O. Federally-enforceable Condition - any condition set
                   forth in the Permit to Operate addressing an applicable
                   federal requirement or voluntary emissions cap.

                P. Fugitive Emissions - emissions which could not
                   reasonably pass through a stack, chimney, vent, or other
                   functionally-equivalent opening.

                Q. Hazardous Air Pollutant (HAP) - any air pollutant listed
                   pursuant to Section 112(b) of the CAA.

                R. Health and Safety Code (H&SC) - California Health and
                   Safety Code.

                S. Initial Permit - first Rule 201.1 operating permit for
                   which a source submits an application addressing
                   requirements of Title V of the CAA.

                T. Major Source - any stationary source having the
                   potential to emit a regulated air pollutant or a HAP in
                   quantities equal to or exceeding the lesser of any of
                   the following thresholds:

                   Major Source Type:

                   1.  100 tons per year (tpy) of any regulated air
                       pollutant;

                   2.  50 tpy of volatile organic compounds or oxides of
                       nitrogen;

                   3.  10 tpy of one HAP or 25 tpy of two or more HAPs; or

                   4.  Any lesser quantity threshold promulgated by the
                       U.S. EPA.

                U. Minor Permit Modification - any modification to a
                   federally-enforceable condition on a permit to operate:
                   1) not constituting a significant permit modification,
                   and 2) not constituting an administrative permit
                   amendment.

                V. Permit Modification - any addition, deletion, or
                   revision to a permit to operate condition.

                W. Potential to Emit - For purposes of this Rule, potential
                   to emit as it applies to an emissions unit and a
                   stationary source is defined as:

                   1.  Emissions Unit - Potential to emit for an emissions
                       unit is the maximum capacity of the unit to emit a
                       regulated air pollutant or HAP considering the
                       unit's physical and operational design.  Physical
                       and operational limitations on the emissions unit
                       shall be treated as part of its design, if the
                       limitations are set forth in permit conditions which
                       address applicable federal requirements.  Physical
                       and operational limitations shall include, but are
                       not limited to the following:  limits placed on
                       emissions; and restrictions on operations such as
                       hours of operation and type or amount of material
                       combusted, stored, or processed.

                   2.  Stationary Source - Potential to emit for a
                       stationary source is the sum of the potentials to
                       emit from all emissions units at the stationary
                       source.  If two or more HAP's are emitted at a
                       stationary source, the potential to emit for each of
                       those HAP's shall be summed to determine Section III
                       applicability.  Fugitive emissions shall be
                       considered in determining potential to emit for:  1)
                       sources as specified in 40 CFR Part 70.2 Major
                       Sources (2), and 2) sources of HAP emissions.
                       Notwithstanding the above, any HAP emissions from
                       any gas pipeline compressor station shall not be
                       aggregated with emissions of similar units for the
                       purpose of determining a major source of HAP's, even
                       if such units are located on contiguous or adjacent
                       properties or under common control.

                X. Preconstruction Permit - permit authorizing
                   construction and issued prior to construction including:

                   1.  Any preconstruction permit issued pursuant to a
                       program for the Prevention of Significant
                       Deterioration of air quality required by Section 165
                       of the CAA; or

                   2.  Any preconstruction permit issued pursuant to a
                       New Source Review program required by Sections 172
                       and 173 of the CAA or Rule 210.1.

                Y. Regulated Air Pollutant - any pollutant:  1) emitted
                   into or otherwise entering the ambient air, and 2)
                   having a U.S. EPA-adopted emission limit, standard, or
                   other requirement.  Regulated air pollutants include:

                   1.  Oxides of nitrogen and volatile organic compounds;

                   2.  Any pollutant having a National Ambient Air Quality
                       Standard promulgated pursuant to Section 109 of the
                       CAA;
                   3.  Any pollutant subject to a New Source Performance
                       Standard promulgated pursuant to Section 111 of the
                       CAA;

                   4.  Any ozone-depleting substance specified as a
                       Class I (chlorofluorocarbons) or Class II
                       (hydrochlorofluorocarbons) substance pursuant to
                       Title VI of the CAA; and

                   5.  Any pollutant subject to a standard or requirement
                       promulgated pursuant to Section 112 of the CAA,
                       including:

                       a.  Any pollutant listed pursuant to Section 112(r)
                           of the CAA (Prevention of Accidental Releases)
                           upon promulgation of the list.

                       b.  Any HAP subject to a standard or other
                           requirement promulgated by the U.S. EPA pursuant
                           to Section 112(d) or adopted by the District
                           pursuant to Sections 112(g) and (j) of the CAA
                           upon promulgation of the standard or
                           requirement, or 18 months after the standard or
                           requirement was scheduled to be promulgated
                           pursuant to Section 112(e)(3) of the CAA.

                       c.  Any HAP subject to a District case-by-case
                           emissions limitation determination for a new or
                           modified source, prior to U.S. EPA promulgation
                           or scheduled promulgation of an emissions
                           limitation when the determination is made
                           pursuant to Section 112(g)(2) of the CAA.  In
                           case-by-case emissions limitation
                           determinations, the HAP shall be considered a
                           regulated air pollutant only for the individual
                           source having had the emissions limitation
                           determination.

                Z. Responsible Official - an individual with authority to
                   certify a source complies with all applicable federal
                   requirements and federally-enforceable conditions of
                   permits issued to sources in accordance with this Rule.
                   Responsible official means one of the following:

                   1.  For a corporation, a president, secretary,
                       treasurer, or vice-president of the corporation in
                       charge of a principal business function, or any
                       other person performing similar policy or decision-
                       making functions for the corporation, or a duly
                       authorized representative of such person if the
                       representative is responsible for overall operation
                       of one or more manufacturing, production, or
                       operating facilities applying for or subject to a
                       permit and either:
                       a.  The facilities employ more than 250 persons or
                           have gross annual sales or expenditures
                           exceeding $25 million (in second quarter 1980
                           dollars); or

                       b.  The delegation of authority to such
                           representative is approved in advance by the
                           APCO;

                   2.  For a partnership or sole proprietorship, a general
                       partner or the proprietor, respectively;

                   3.  For a municipality, state, federal, or other public
                       agency, either a principal executive officer or a
                       ranking elected official; or

                   4.  For an acid rain unit subject to Title IV (Acid
                       Deposition Control) of the CAA, the responsible
                       official is the designated representative of that
                       unit for any purposes under Title IV and this Rule.
                AA.  Significant Permit Modification - any modification to
                     a federally-enforceable condition on a permit to
                     operate:

                     1. Involving any modification under Section 112(g) of
                        Title I of the CAA or under U.S. EPA regulations
                        promulgated pursuant to Title I of the CAA,
                        including 40 CFR Parts 51, 52, 60, 61, and 63;

                     2. Significantly changing monitoring conditions;

                     3. Providing for relaxation of any reporting or
                        recordkeeping conditions;

                     4. Involving a permit term or condition allowing a
                        source to avoid an applicable federal requirement,
                        including:  1) a federally-enforceable voluntary
                        emissions cap established to avoid triggering a
                        modification requirement of Title I of the CAA, or
                        2) an alternative HAP emission limit pursuant to
                        Section 112(i)(5) of the CAA;

                     5. Involving a case-by-case determination of any
                        emission standard or other requirement; or

                     6. Involving a source-specific determination for
                        ambient impacts, visibility analysis, or increment
                        analysis on portable sources.

                BB.  Solid Waste Incinerator - any incinerator burning
                     solid waste material from commercial, industrial,
                     medical, general public sources (e.g., residences,
                     hotels, or motels), or other categories of solid waste
                     incinerators subject to a performance standard
                     promulgated pursuant to Sections 111 or 129 of the
                     CAA.

                     The following incinerators shall not be considered
                     solid waste incinerators for purposes of this Rule:

                     1. Any hazardous waste incinerator required to obtain
                        a permit pursuant to Section 3005 of the Solid
                        Waste Disposal Act (42 U.S.C. Section 6925);

                     2. Any materials recovery facility primarily
                        recovering metals;

                     3. Any qualifying small power production facility as
                        defined in 16 U.S.C.A. Section 796(17)(C);

                     4. Any qualifying cogeneration facility burning
                        homogenous waste for the production of energy as
                        defined in 16 U.S.C.A. Section 796(18)(B); or

                     5. Any air curtain incinerator burning only wood,
                        yard, or clean lumber waste and complying with
                        opacity limitations established by the
                        Administrator of the U.S. EPA.

                CC.  Standard District Application - See Subsection IV.C.,
                     Page 201.1-11.

                DD.  Stationary Source -  For purposes of this Rule, a
                     stationary source is any building, structure,
                     facility, or installation (or any such grouping):

                     1. Emitting, or having the potential to emit, or
                        resulting in emissions of any regulated air
                        pollutant or HAP;

                     2. Located on one or more contiguous or adjacent
                        properties;

                     3. Under the ownership, operation, or control of the
                        same person (or persons under common control) or
                        entity; and

                     4. Belonging to a single major industrial grouping;
                        i.e., each building, structure, facility, or
                        installation in the grouping has the same two-digit
                        code under the system described in the 1987
                        Standard Industrial Classification Manual.

                EE.  United States Environmental Protection Agency
                     (U.S. EPA) - The Administrator or appropriate delegate
                     of the "United States Environmental Protection
                     Agency."

                FF.  Voluntary Emissions Cap - An optional, federally-
                     enforceable emissions limit on one or more emissions
                     unit(s) established by a source to avoid an applicable
                     federal requirement.  Notwithstanding acceptance and
                     recognition of a voluntary emissions cap, the source
                     remains subject to all other applicable federal
                     requirements.

          III.  Applicability

                A. Sources Subject to Rule 201.1

                   Sources listed below are subject to requirements of this
                   Rule and are required to apply for and obtain Title V
                   Permits to Operate:

                   1.  Major source;

                   2.  Source with an acid rain unit required by Title IV
                       of the CAA to apply for an Acid Rain Permit;

                   3.  Solid waste incinerator subject to a performance
                       standard promulgated pursuant to Section 111 or 129
                       of the CAA;

                   4.  Any other source in a source category designated by
                       rule of the U.S. EPA; and

                   5.  Any source subject to a standard or other
                       requirement promulgated pursuant to Section 111
                       (NSPS) or 112 (HAP's) of the CAA, published after
                       July 21, 1992, designated, pursuant to 40 CFR
                       Part 70.3 by the U.S. EPA at the time the new
                       standard or requirement is promulgated.

                B. Sources Exempt from Rule 201.1

                   Sources listed below are not subject to requirements of
                   this Rule:

                   1.  Source regulated solely by 40 CFR Part 60,
                       Subpart AAA (Standards of Performance for New
                       Residential Wood Heaters);

                   2.  Source regulated solely by 40 CFR Part 61,
                       Subpart M, Section 145 (National Emission Standards
                       for Asbestos, Standard for Demolition and
                       Renovation); and

                   3.  Any other source in a source category deferred,
                       pursuant to 40 CFR Part 70.3, by U.S. EPA
                       rulemaking.

          IV.   Administrative Procedures for Sources

                A. Permit Requirement and Application Shield

                   A source shall operate in compliance with permits to
                   operate issued under requirements of this Rule.  If an
                   owner or operator submits a timely and complete
                   application for a permit in accordance with
                   Subsections IV.B. and IV.C., a source shall not be in
                   violation of Subsection III.A. for deficiencies until
                   the APCO takes final action on the application.  The
                   application shield will cease if an owner or operator of
                   the source fails to submit additional information
                   requested by the APCO pursuant to Subsection IV.C.2.
                   The source shall obtain any preconstruction permits
                   required under Title I of the CAA.

                   If an owner or operator submits, pursuant to this Rule,
                   a timely and complete application for an initial permit,
                   the source shall operate in accordance with
                   requirements of any valid Permit to Operate issued
                   pursuant to section 42301 of the H&SC until the APCO
                   takes final action on the application.  If an owner or
                   operator submits a timely and complete application for
                   renewal of a Permit to Operate, the source shall operate
                   in accordance with the existing Permit to Operate issued
                   pursuant to this Rule, even if the permit expires while
                   the District is processing the application.

                   This application shield shall not apply to sources
                   applying for permit modification.  For permit
                   modifications, a source shall operate in accordance with
                   applicable federal requirements, the Permit to Operate
                   issued pursuant to this Rule, and any temporary Permit
                   to Operate issued pursuant to Section 42301.1 of the
                   H&SC until approval of such modifications.

                B. Application Requirements

                   1.  Initial Permit

                       a.  For a Type 1 major source (as defined in
                           Subsection II.T) subject to this Rule on the
                           effective date of the Rule, an owner or operator
                           shall submit a standard District application
                           within 6 months after this date (by December 4,
                           1995).

                       b.  For any other source subject to this Rule on the
                           effective date of the Rule, an owner or operator
                           shall submit a standard District application
                           within 12 months after this date (by June 4,
                           1996).
                       c.  For a source becoming subject to this Rule after
                           the effective date of the Rule, an owner or
                           operator shall submit a standard District
                           application within 6 months of the source
                           commencing operation.

                       d.  For a source with an acid rain unit, an owner or
                           operator shall submit a standard District
                           application and acid rain permit application to
                           the District.  Such applications shall be
                           submitted within the following timeframe:

                           1) If the source is subject to Rule 201.1
                              because of Subsection III.A.1., Page 201.1-9,
                              within the applicable timeframe specified in
                              Subsection B.1.a. or B.1.b., above.

                           2) If the source is subject to Rule 201.1 only
                              because of Subsection III.A.2., Page 201.1-9,
                              by January 1, 1996, or, if applicable, a
                              later date established by 40 CFR Part 72.

                       2.  Permit Renewal

                           For renewal of a Rule 201.1 permit, an owner or
                           operator shall submit a standard District
                           application no earlier than 18 months and no
                           later than 6 months before expiration of the
                           current Permit to Operate.  Permits to Operate
                           for all emissions units at a stationary source
                           subject to this Rule shall undergo simultaneous
                           renewal.

                       3.  Significant Permit Modification

                           When applying for a Kern County APCD Rule 201
                           Authority to Construct or after obtaining any
                           required U.S. EPA preconstruction permits to
                           modify an existing stationary source, an owner
                           or operator shall submit a standard District
                           application for each emissions unit affected by
                           a proposed permit revision constituting a
                           significant permit modification.  Upon request
                           by the APCO, the owner or operator shall submit
                           copies of the latest U.S. EPA preconstruction
                           permit for each affected emissions unit.  Any
                           affected emissions unit(s) shall not commence
                           operation until the APCO takes final action to
                           approve the permit revision.

                       4.  Minor Permit Modification

                           When applying for a Kern County APCD Rule 201
                           Authority to Construct or after obtaining any
                           required U.S. EPA preconstruction permits to
                           modify an existing stationary source, an owner
                           or operator shall submit a standard District
                           application for each emissions unit affected by
                           the proposed permit revision constituting a
                           minor permit modification. Any affected
                           emissions unit(s) shall not commence operation
                           until the APCO takes final action to approve the
                           permit revision.  The application in addition to
                           information required by the District's standard
                           application form, shall include the following:

                           a. A description of the proposed permit
                              revision, any change in emissions, and
                              additional applicable federal requirements;

                           b. Proposed permit terms and conditions; and

                           c. Certification by a responsible official the
                              permit revision meets criteria for use of
                              minor permit modification procedures and a
                              request such procedures be used.

                       5.  Acid Rain Unit Permit Modification

                           A permit modification of the acid rain portion
                           of an operating permit shall be governed by
                           regulations promulgated pursuant to Title IV of
                           the CAA.

                C. Application Content and Correctness

                   1.  Standard District Application

                       An application submitted by the responsible official
                       shall include:

                       a.  Information identifying the stationary source;

                       b.  Description of processes and products (by
                           Standard Industrial Classification Code),
                           including any associated with proposed
                           alternative operating scenarios (see
                           Subsection V.I.1., Page 201.1-20);

                       c.  Identification of fees required by Rules 301,
                           and 301.3;

                       d.  Listing of all existing emissions units at the
                           stationary source and identification and
                           description of all points of emissions from
                           emissions units in sufficient detail to
                           establish applicable federal requirements and
                           basis for any fees pursuant to Section VII;
                       e.  Citation and description of all applicable
                           federal requirements, information and
                           calculations used to determine applicability of
                           such requirements and other information
                           necessary to implement and enforce such
                           requirements;

                       f.  Calculation of all emissions, including fugitive
                           emissions, in tons per year and in terms
                           necessary to establish compliance with all
                           applicable District, state, or federal
                           requirements for:

                           1) All regulated air pollutants emitted from the
                              source,

                           2) Any HAP the source has the potential to emit
                              in quantities equal to or in excess of
                              10 tons per year, and

                           3) If the source has the potential to emit two
                              or more HAP's in quantities equal to or in
                              excess of 25 tons per year, all HAP's emitted
                              by the source;

                       g.  Identification of fuels, fuel use, raw
                           materials, production rates, operating
                           schedules, limitations on source operation or
                           workplace practices if these affect source
                           emissions;

                       h.  Identification and description of air pollution
                           control equipment and compliance monitoring
                           devices or activities;

                       i.  Any other information required by an applicable
                           federal requirement;

                       j.  Information needed to define permit terms or
                           conditions implementing a source's options for
                           operational flexibility, including alternative
                           operating scenarios pursuant to
                           Subsection V.I.1., Page 201.1-20;

                       k.  Compliance plan and compliance schedule,
                           including:

                           1) Description of the compliance status of each
                              emissions unit within the stationary source
                              with respect to applicable federal
                              requirements,

                           2) Statement for sources in compliance, that
                              sources will continue to comply with
                              applicable federal requirements,
                           3) For sources not in compliance, description of
                              how the source will achieve compliance with
                              applicable Federal requirements, and

                           4) Statement the source will comply, on a timely
                              basis, with applicable Federal Requirements
                              becoming effective during the permit term.

                       l.  For a source not in compliance with an
                           applicable federal requirement at the time of
                           permit issuance or renewal, a schedule of
                           compliance approved by the District hearing
                           board identifying remedial measures with
                           specific increments of progress, a final
                           compliance date, testing and monitoring methods,
                           recordkeeping requirements, and a schedule for
                           submission of certified progress reports to the
                           U.S EPA and the APCO at least every 6 months;

                       m.  Certification by a responsible official of the
                           truth, accuracy and completeness of: application
                           forms, progress reports (at least every 6
                           months), statements on compliance status with
                           any applicable enhanced  monitoring, and
                           compliance plans (at least annually);

                       n.  For a source with an acid rain unit, an
                           application shall include  elements required by
                           40 CFR Part 72;

                       o.  For a source of HAP's required to prepare a risk
                           management plan pursuant to Section 112(r) of
                           the CAA, the application shall include
                           verification such a plan has been submitted to
                           the authorized implementing agency or a
                           compliance schedule for submittal of such a
                           plan: and

                       p.  For proposed portable sources, an application
                           shall identify all locations of potential
                           operation and how the source will comply with
                           all applicable District, state, and federal
                           requirements at each location.

                   2.  Correctness of Applications

                       An owner or operator of a source shall submit an
                       accurate and complete application in accordance with
                       requirements of Subsection IV.C., and

                       a.  Upon written request of the APCO, an owner or
                           operator shall supplement any complete
                           application with any necessary additional
                           information within the timeframe specified by
                           the APCO.

                       b.  An owner or operator shall promptly provide
                           additional/replacement information in writing to
                           the APCO upon discovery of submittal of any
                           inaccurate information as part of the
                           application or as a supplement thereto, or of
                           any additional relevant facts previously omitted
                           and needed for accurate analysis of the
                           application.

                       c.  Intentional or negligent submittal of inaccurate
                           information shall result in denial of an
                           application.

                D. Written Requests for District Action

                   An owner or operator shall submit a written request to
                   the APCO for the following permit actions:

                   1.  Administrative Permit Amendment

                       For an administrative permit amendment, an owner or
                       operator may implement the change addressed in the
                       written request immediately upon submittal of the
                       request.


                   2.  Permit Modification for a non-Federally-Enforceable
                       Condition

                       For a permit modification for a non-federally-
                       enforceable condition, an owner or operator shall
                       submit a written request in accordance with
                       requirements of Rule 201, unless exempted by
                       Rule 202 or 202.1.

                   3.  Permit to Operate for New Emissions Unit

                       For a permit to operate a new emissions unit at a
                       stationary source, an owner or operator shall submit
                       a written request in accordance with  requirements
                       of Rule 201, except when:

                       a.  Construction or operation of the emissions unit
                           is a modification under U.S. EPA regulations
                           promulgated pursuant to Title I of the CAA,
                           including 40 CFR Parts 51, 52, 60, 61, 63;

                       b.  Construction or operation of the emissions unit
                           is addressed or prohibited by existing
                           Rule 201.1 permits for other emissions units at
                           the stationary source; or

                       c.  The emissions unit is an acid rain unit subject
                           to Title IV of the CAA.
                           For circumstances specified in Subsections a.,
                           b., or c., above, an owner or operator shall
                           apply for a Permit to Operate for the new
                           emissions unit pursuant to requirements of this
                           Rule.

                E. Response to Permit Reopening For Cause

                   Upon notification by the APCO of reopening of a permit
                   for cause for an applicable federal requirement pursuant
                   to Subsection V.H., Page 201.1-18, an owner or operator
                   shall respond to any written request for information by
                   the APCO within the timeframe specified by the APCO.

          V.    District Administrative Procedures

                Cost of all public notices published pursuant to this
                section shall be paid by applicant.

                A. Completeness Review of Applications

                   The APCO shall determine if an application is complete
                   and shall notify the responsible official of his
                   determination within the following timeframes:

                   1.  For an initial permit, permit renewal, or a
                       significant permit modification, within 60 days of
                       receiving the application;

                   2.  For a minor permit modification, within 30 days of
                       receiving the application.

                       An application shall be deemed complete unless the
                       APCO requests additional information or otherwise
                       notifies the owner or operator the application is
                       incomplete within the timeframes specified above.

                B. Notification of Completeness Determination

                   The APCO shall provide written notification of a
                   completeness determination to the U.S. EPA, the CARB and
                   any affected state and shall submit a copy of the
                   complete application to the U.S. EPA within five working
                   days of the determination.  The APCO need not provide
                   notification for applications from non-major sources
                   when the U.S. EPA waives such requirement for a source
                   category by regulation or at the time of approval of the
                   District operating permits program.

                C. Application Processing Timeframes

                   The APCO shall act on a complete application in
                   accordance with procedures in following Subsections D.,
                   E. and F., except as application procedures for acid
                   rain units are provided for under regulations
                   promulgated pursuant to Title IV of the CAA, and take
                   final action within the following timeframes:

                   1.  For an initial permit for a source subject to this
                       Rule on the effective date of the Rule, no later
                       than three years after the effective date of the
                       Rule;

                   2.  For an initial permit for a source becoming subject
                       to this Rule after the effective date of the Rule,
                       no later than 18 months after the complete
                       application is received;

                   3.  For a permit renewal, no later than 18 months after
                       the complete application is received;

                   4.  For a significant permit modification, no later than
                       18 months after the complete application is
                       received;

                   5.  For a minor permit modification, no later than
                       90 days after the application is received or
                       60 days after written notice to the U.S. EPA of the
                       proposed decision, whichever is later; or

                   6.  For any permit application with early HAP's
                       reductions pursuant to Section 112(i)(5) of the CAA,
                       within 9 months after the complete application is
                       received.

                D. Notification and Opportunity for Review of Proposed
                   Decision

                   Within the applicable timeframe specified in
                   Subsection C., the APCO shall provide notice of and
                   opportunity to review the proposed decision to issue a
                   Permit to Operate in accordance with the following
                   requirements:

                   1.  For initial permits, renewal of permits, significant
                       permit modifications, and reopenings for cause, the
                       APCO shall provide:

                       a.  Written notice, the draft proposed permit and,
                           upon request, a copy of the District analysis to
                           interested persons or agencies.  The District
                           analysis shall include a statement setting forth
                           the legal and factual basis for proposed permit
                           conditions, including references to applicable
                           statutory and regulatory provisions.
                           "Interested persons or agencies" includes
                           persons having requested in writing to be
                           notified of proposed Rule 201.1 decisions, any
                           affected state and the CARB.

                       b.  On or after providing written notice pursuant to
                           Subsection D.1.a., public notice shall be
                           published in at least one newspaper of general
                           circulation in the District. The notice shall
                           include:

                           1) Identification of the source, name and
                              address of permit holder, activity(ies) and
                              emissions change involved in the permit
                              action;

                           2) Name and address of the District, name and
                              telephone number of District staff capable of
                              providing additional information;

                           3) Availability, upon request, of a statement
                              setting forth legal and factual basis for
                              proposed permit conditions;

                           4) Location where the public may inspect the
                              complete application, District analysis, and
                              proposed permit;

                           5) Statement that public may submit written
                              comments regarding the proposed decision
                              within at least 30 days from date of
                              publication and brief description of
                              commenting procedures, and

                           6) Statement that members of the public may
                              request the APCO preside over a public
                              hearing for the purpose of receiving oral
                              public comment if a hearing has not already
                              been scheduled.  The APCO shall provide
                              notice of any public hearing scheduled to
                              address the proposed decision at least 30
                              days prior to such hearing.

                       c.  A copy of the complete application, District
                           analysis and proposed permit at a District
                           office for public review and comment during
                           normal business hours;

                       d.  Written response to persons or agencies
                           submitting written comments postmarked by the
                           close of the public notice and comment period.
                           All written comments and responses to such
                           comments shall be kept on file at the District
                           office and made available upon request.

                       e.  After completion of the public notice and
                           comment period pursuant to Subsection D.1.b.,
                           written notice to the U.S. EPA of the proposed
                           decision, including copies of the proposed
                           permit, District analysis, public notice
                           submitted for publication, District's response
                           to written comments, and all necessary
                           supporting information.

                   2.  For minor permit modifications, the APCO shall
                       provide written notice of the proposed decision to
                       the U.S. EPA, CARB, and any affected state.
                       Additionally, the District shall provide to the U.S.
                       EPA and, upon request, to CARB or any affected state
                       copies of the proposed permit,  District analysis,
                       and all necessary supporting information.  The
                       District analysis shall include a statement setting
                       forth legal and factual basis for proposed permit
                       conditions, including references to applicable
                       statutory and regulatory provisions.

                E. Changes to Proposed Decision

                   Changes to a proposed decision shall be administered as
                   follows:

                   1.  The APCO may modify or change a proposed decision,
                       the proposed permit, or District analysis based on
                       information in comments received during the public
                       comment period pursuant to Subsection D.1.b., or
                       based on further analysis of the APCO.  Pursuant to
                       Subsection D.1.e., the APCO shall forward any such
                       modified proposed decision, the proposed permit,
                       District analysis, and all necessary supporting
                       information to the U.S. EPA.

                   2.  If the U.S. EPA objects in writing to a proposed
                       decision within 45 days of being notified of the
                       decision and receiving a copy of the proposed permit
                       and all necessary supporting information pursuant to
                       Subsection D.1.e., the APCO shall not issue the
                       permit.  The APCO shall, as appropriate, respond in
                       writing to U.S. EPA's comments, deny the
                       application, or revise and resubmit a permit
                       addressing U.S. EPA's identified deficiencies within
                       the following timeframes:

                       a.  For initial permits, permit renewals, and
                           significant permit modifications, within 90 days
                           of receiving the U.S. EPA objection; or

                       b.  For minor permit modifications, within 90 days
                           of receipt of the application or 60 days of the
                           notice to U.S. EPA, whichever is later.
                F. Final Decision

                   If the U.S. EPA does not object in writing within
                   45 days of a notice provided pursuant to
                   Subsection D.1.e., or the APCO submits a revised permit
                   pursuant to Subsection E.2., the APCO shall
                   expeditiously deny the application or issue the final
                   permit to operate.  In any case, the APCO shall take
                   final action on an application within applicable
                   timeframes specified in Subsection C.

                   Written notification of a final decision shall be sent
                   to the owner or operator of the source, U.S. EPA, CARB
                   and any person and affected state having submitted
                   comments during the public comment period.  The APCO
                   shall submit a copy of an as-issued Permit to Operate to
                   the U.S. EPA and provide a copy to any person or agency
                   requesting a copy for the cost of producing and mailing.
                   If the application is denied, the APCO shall provide to
                   the owner or operator reasons for the denial in writing
                   and the District analysis including specific statute,
                   rule, or regulation upon which the denial is based.

                G. District Action on Written Requests

                   The APCO shall act on a written request of an owner or
                   operator for permit action using the applicable
                   procedure specified in this Subsection.

                   1.  Administrative Permit Amendment

                       The APCO shall take final action no later than
                       60 days after receiving a written request for an
                       administrative permit amendment and:

                       a.  After designating the permit revision(s) as an
                           administrative permit amendment, the APCO may
                           revise the permit without providing notice to
                           the public or any affected state;

                       b.  The APCO shall provide a copy of the revised
                           permit to the responsible official and the
                           U.S. EPA; and

                       c.  The APCO is not required to make a completeness
                           determination on a written request, but shall
                           notify the owner or operator if the APCO
                           determines the permit can not be revised as an
                           administrative permit amendment.

                   2.  Permit Modification for Non-Federally-Enforceable
                       Condition

                       The APCO shall take action on a written request for
                       a permit modification for a non-federally-
                       enforceable condition in accordance with
                       requirements of Rule 201 if:

                       a.  Any change at the stationary source allowed by
                           the permit modification meets all applicable
                           federal requirements and will not violate any
                           existing permit term or condition; and

                       b.  The APCO provides to the U.S. EPA a
                           contemporaneous written notice describing the
                           change, including the date, any change in
                           emissions or air pollutants emitted, and any
                           applicable federal requirement applying as a
                           result of the change.

                   3.  Permit to Operate for New Emissions Unit

                       The APCO shall take action on a written request for
                       a Permit to Operate a new emissions unit in
                       accordance with requirements of Rule 201 under the
                       circumstances specified in Subsection G.2.a. and
                       G.2.b. unless Subsections IV.D.3.a., IV.D.3.b., or
                       IV.D.3.c., Page 201.1-14, apply. If these
                       Subsections apply, the APCO shall require submittal
                       of a standard District application and take action
                       on that application pursuant to requirements of this
                       Rule.

                H. Permit Reopening for Cause

                   The APCO shall reopen and revise a Permit to Operate
                   during the annual review period authorized by
                   Section 42301(c) of the H&SC, or petition the District
                   hearing board to do so, as applicable, prior to its
                   expiration date upon discovery of cause for reopening or
                   upon notification of cause for reopening by the
                   U.S. EPA, or within 18 months of promulgation of a new
                   applicable federal requirement.  The APCO shall act only
                   on those parts of the permit for which cause to reopen
                   exists.

                   1.  Circumstances constituting cause for reopening and
                       revision of a permit include, but are not limited
                       to, the following:

                       a.  Need to correct a material mistake or inaccurate
                           statement;

                       b.  Need to revise or revoke a permit to operate to
                           assure compliance with applicable federal
                           requirements;

                       c.  Need to incorporate any new, revised, or
                           additional applicable federal requirement, if
                           the remaining authorized life of the permit is
                           3 years or greater, no later than 18 months
                           after the promulgation of such requirement (if
                           less than 3 years remain in the authorized life
                           of the permit, the APCO shall incorporate these
                           requirements into the permit to operate upon
                           renewal); or

                       d.  Need to reopen a permit issued to an acid rain
                           unit subject to Phase II of Title IV of the CAA
                           to include:

                           1) Oxides of nitrogen requirements prior to
                              January 1, 1999; and

                           2) Additional requirements promulgated pursuant
                              to Title IV as they become applicable to any
                              acid rain unit governed by the permit.

                   2.  In processing a permit reopening, the APCO shall use
                       the same procedures as for an initial permit and
                       shall additionally:

                       a.  Provide written notice to an owner or operator
                           and the U.S. EPA  at least 30 days, or a shorter
                           period in the case of an emergency, prior to
                           reopening a permit; and

                       b.  Complete action to revise the permit as
                           specified in the notice of reopening within
                           60 days after the written notice to the U.S. EPA
                           pursuant to Subsection D.1.e., Page 201.1-16, if
                           the  U.S. EPA does not object, or after the APCO
                           has responded to U.S. EPA objection pursuant to
                           Subsection E.2., Page 201.1-17.

                I. Options for Operational Flexibility

                   The APCO shall allow specified changes in operations at
                   a source without requiring a permit revision for
                   conditions addressing an applicable federal requirement.
                   The APCO shall not allow such changes constituting a
                   modification under Title I of the CAA or Rule 210.1, or
                   resulting in exceedance of emissions allowed by the
                   permit, whether expressed therein as a rate of emissions
                   or in terms of total emissions without revision to the
                   permit.  The source may gain operational flexibility
                   using the following options:
                   1.  Alternative Operating Scenarios

                       The APCO shall allow use of alternative operating
                       scenarios provided:

                       a.  Terms and conditions applicable to each
                           operating scenario are identified by the owner
                           or operator in the permit application;

                       b.  Terms and conditions are approved by the APCO;

                       c.  Terms and conditions are incorporated into the
                           permit; and

                       d.  Terms and conditions are in compliance with all
                           applicable District, state, and federal
                           requirements.
                           A permit condition shall require a
                           contemporaneous log recording each change made
                           from one operating scenario to another.

                   2.  Voluntary Emissions Caps

                       The APCO shall issue a permit containing terms and
                       conditions allowing for trading of emissions
                       increases and decreases within the stationary source
                       solely for the purpose of complying with a voluntary
                       emissions cap established in the permit independent
                       of otherwise applicable federal requirements
                       provided:

                       a.  Requirements of Subsections 1.a., 1.c., and
                           1.d., above are met;

                       b.  Terms and conditions are approved by the APCO as
                           quantifiable and enforceable; and

                       c.  Terms and conditions are consistent with any
                           applicable preconstruction permit.

                           A permit condition shall require an owner or
                           operator to provide written notice to U.S. EPA
                           and the APCO 30 days in advance of a change by
                           clearly requesting operational flexibility
                           pursuant to this Subsection.  Such written
                           notice shall describe the change, identify the
                           emissions unit to be affected, date on which the
                           change will occur and duration of change, any
                           change in emissions of any air pollutant,
                           whether regulated or not, and any new emissions
                           of any air pollutant not emitted before the
                           change, whether regulated or not.

                       3.  Contravening an Express Permit Condition

                           The APCO shall allow for changes in operation
                           contravening an express condition addressing an
                           applicable federal requirement in a permit to
                           operate provided:

                           a. Changes will not violate any applicable
                              federal requirement;

                           b. Changes will not contravene monitoring
                              (including test methods), recordkeeping,
                              reporting, or compliance certification
                              requirements constituting federally-
                              enforceable conditions;

                           c. Changes are not modifications under Title I
                              of the CAA or any provision of Rule 210.1;

                           d. Changes do not result in exceeding emissions
                              allowable by the permit, whether expressed
                              therein as a rate of emissions or in terms of
                              total emissions;

                           e. Written notice is given to U.S. EPA and the
                              APCO 30 days in advance of a change, and such
                              notice clearly indicates term(s) or
                              condition(s) to be contravened, requests
                              operational flexibility under this
                              Subsection, describes the change, identifies
                              emissions units to be affected, date on which
                              the change will occur, duration of the
                              change, any change in emissions of any air
                              pollutant, whether regulated or not, and any
                              new emissions of any air pollutant not
                              emitted before the change, whether regulated
                              or not; and

                           f. APCO has not provided a written denial to the
                              owner or operator within 30 days of receipt
                              of the request for an operational change.
                              The written denial shall identify which of
                              the requirements of Subsections a., b., c.,
                              d., or e., above, have not been satisfied.

          VI.   Permit Content Requirements

                A Permit to Operate shall contain permit conditions
                assuring compliance with all applicable federal
                requirements.

                A. Incorporation of Applicable Federal Requirements

                   A Permit to Operate shall incorporate all applicable
                   federal requirements as permit conditions.  The
                   following procedure shall be used to incorporate an
                   applicable federal requirement as a permit condition:

                   1.  A permit condition addressing an applicable federal
                       requirement shall be specifically identified in the
                       permit, or otherwise distinguished from any
                       requirement not enforceable by U.S. EPA;

                   2.  If an applicable federal requirement and a similar
                       non-federally-enforceable requirement apply to the
                       same emissions unit, both shall be incorporated as
                       permit conditions, provided they are not mutually
                       exclusive; and

                   3.  Where an applicable federal requirement and a
                       similar non-federally-enforceable requirement apply
                       to the same emissions unit and are mutually
                       exclusive (e.g., require different air pollution
                       control technology), the requirement specified in
                       the preconstruction permit (or, in the case of
                       sources without preconstruction permits, the more
                       stringent requirement) shall be incorporated as a
                       permit condition and the other requirement shall be
                       referenced.

                B. General Requirements

                   All permits to operate shall contain conditions or terms
                   consistent with 40 CFR Part 70.6 Permit Content,
                   including:

                    1.  Emission and Operational Limitations

                        The permit shall contain conditions requiring
                        compliance with all applicable federal
                        requirements, including any operational limitations
                        or requirements.

                    2.  Preconstruction Permit Requirements

                        The permit shall include all preconstruction permit
                        conditions for each emissions unit.

                    3.  Origin and Authority for Permit Conditions

                        The origin and authority for each permit term or
                        condition shall be referenced in the permit.

                    4.  Equipment Identification

                        The permit shall identify all equipment to which
                        permit conditions apply.

                    5.  Monitoring, Testing, and Analysis

                        The permit shall contain conditions requiring
                        monitoring, analytical methods, compliance
                        certification, test methods, equipment management,
                        and statistical procedures consistent with any
                        applicable federal requirement, including those
                        pursuant to Sections 114(a)(3) and 504(b) of the
                        AA (authority to require testing), and 40 CFR
                        Part 64.  Periodic monitoring shall be required as
                        a condition to ensure monitoring is sufficient to
                        yield reliable data representative of the source's
                        compliance with permit conditions over the relevant
                        time period.

                    6.  Recordkeeping

                        The permit shall include recordkeeping conditions
                        requiring:

                        a.  Recording of maintenance of all monitoring and
                            support information associated with any
                            applicable federal requirement, including:

                            1) Date, place, and time of sampling;

                            2) Operating conditions at time of sampling;

                            3) Date, place, and method of analysis; and

                            4) Results of analysis;

                        b.  Retention of records of all required monitoring
                            data and support information for a period of at
                            least five years from the date of sample
                            collection, measurement, report, or
                            application; and

                        c.  Any other recordkeeping deemed necessary by the
                            APCO to ensure compliance with all applicable
                            federal requirements.

                    7.  Reporting

                        The permit shall include reporting conditions
                        requiring the following:

                        a.  Any non-conformance with permit requirements,
                            including any attributable to emergency
                            conditions (as defined in the permit) shall be
                            promptly reported to the APCO and in accordance
                            with Rule 111;

                        b.  Monitoring report shall be submitted at least
                            every six months  identifying any non-
                            conformance with permit requirements, including
                            any previously reported to the APCO;

                        c.  All reports of non-conformance with permit
                            requirements shall include probable cause of
                            non-conformance and any preventative or
                            corrective action taken;

                        d.  Progress report shall be made on a compliance
                            schedule at least semi-annually and including:
                            1) date when compliance will be achieved, 2)
                            explanation of why compliance was not, or will
                            not be achieved by the scheduled date, and 3)
                            log of any preventative or corrective action
                            taken; and

                        e.  Each monitoring report shall be accompanied by
                            a written statement from the responsible
                            official certifying the truth, accuracy, and
                            completeness of the report.

                    8.  Compliance Plan

                        The permit shall include a compliance plan:

                        a.  Describing the compliance status of an
                            emissions unit with respect to each applicable
                            federal requirement;

                        b.  Describing how compliance will be achieved if
                            an emissions unit is not in compliance with an
                            applicable federal requirement at time of
                            permit issuance;

                        c.  Assuring an emissions unit will continue to
                            comply with all permit conditions with which it
                            is in compliance; and

                        d.  Assuring an emissions unit will comply with, on
                            a timely basis, any applicable federal
                            requirement becoming effective during the
                            permit term.

                    9.  Compliance Schedule

                        The permit shall include a compliance schedule for
                        any emissions unit not in compliance with current
                        applicable federal requirements.  The compliance
                        schedule shall require:

                        a.  Statement the emissions unit will continue to
                            comply with all permit conditions with which it
                            is in compliance;

                        b.  Statement the emissions unit will comply, on a
                            timely basis, with an applicable federal
                            requirement becoming effective during the
                            permit term;

                        c.  For each condition with which the emissions
                            unit is not in compliance with an applicable
                            federal requirement, a schedule of compliance
                            listing all preventative or corrective
                            activities, and dates when these activities
                            will be accomplished; and

                        d.  For each emissions unit not in compliance with
                            an applicable federal requirement, a schedule
                            of progress on at least a semi-annual basis
                            including:  1) date when compliance will be
                            achieved, 2) explanation of why compliance was
                            not, or will not be, achieved by the scheduled
                            date, and 3) log of any preventative or
                            corrective actions taken.

                   10.  Right of Entry

                        The permit shall require the source to allow entry
                        of District, CARB, or U.S. EPA officials for
                        purpose of inspection and sampling, including:

                        a.  Inspection of the stationary source, including
                            equipment, work practices, operations, and
                            emission-related activity;

                        b.  Inspection and duplication of records required
                            by the permit to operate; and

                        c.  Source sampling or other monitoring activities.

                   11.  Compliance with Permit Conditions

                        The permit shall include the following compliance
                        provisions:

                        a.  Permittee shall comply with all permit
                            conditions;

                        b.  Permit does not convey any property rights or
                            any exclusive privilege;

                        c.  Non-compliance with any permit condition shall
                            be grounds for permit termination, revocation
                            and reissuance, modification, enforcement
                            action, or denial of permit renewal;

                        d.  Permittee shall not use "need to halt or reduce
                            a permitted activity in order to maintain
                            compliance" as a defense for non-compliance
                            with any permit condition;

                        e.  Pending permit action or notification of
                            anticipated non-compliance does not stay any
                            permit condition; and

                        f.  Within a reasonable time period, permittee
                            shall furnish any information requested by the
                            APCO, in writing, for purpose of determining:
                            1) compliance with the permit, or 2) whether or
                            not cause exists for a permit or enforcement
                            action.

                   12.  Emergency Provisions

                        The permit shall include a condition requiring
                        reporting of an emergency in accordance with
                        Rule 111.

                   13.  Severability

                        The permit shall include a severability clause
                        ensuring continued validity of otherwise unaffected
                        permit requirements in event of a challenge to any
                        portion of the permit.

                   14.  Compliance Certification

                        The permit shall contain conditions for compliance
                        certification requiring the following:

                        a.  Submittal of a compliance certification by the
                            owner or operator to the U.S. EPA and the APCO
                            every 12 months;

                        b.  Such compliance certification shall identify
                            the basis for each permit term or condition
                            (e.g., specify the emissions limitation,
                            standard, or work practice) and a means of
                            monitoring compliance with the term or
                            condition;
                        c.  Such compliance certification shall include
                            compliance status and method(s) used to
                            determine compliance for the current time
                            period and over entire reporting period; and

                        d.  Such compliance certification shall include any
                            additional inspection, monitoring, or entry
                            requirement promulgated pursuant to Sections
                            114(a) and 504(b) of the CAA.

                   15.  Permit Life

                        With the exception of acid rain units subject to
                        Title IV of the CAA and solid waste incinerators
                        subject to Section 129(e) of the CAA, each Permit
                        to Operate shall include a condition for a fixed
                        term not to exceed five years from the time of
                        issuance.  A permit to operate for an acid rain
                        unit shall have a fixed permit term of five years.
                        A permit to operate for a solid waste incinerator
                        shall have a permit term of 12 years; but such
                        permit shall be reviewed at least every
                        five years

                   16.  Payment of Fees

                        The permit shall include a condition ensuring that
                        appropriate permit fees are paid on schedule.  If
                        fees are not paid on schedule, the permit shall be
                        forfeited.  Operation without a permit shall
                        subject the source to potential enforcement action
                        by the District and the U.S. EPA pursuant to
                        Section 502(a) of the CAA.

                   17.  Alternative Operating Scenarios

                        Where an owner or operator requests an alternative
                        operating scenario be included in the permit for an
                        emissions unit, the permit shall contain specific
                        conditions for each operating scenario, including
                        each alternative operating scenario.  Each
                        operating scenario, including each alternative
                        operating scenario, identified in the permit shall
                        meet all applicable federal requirements and all
                        requirements of this section.  The source shall
                        maintain a contemporaneous log to record each
                        change from one operating scenario to another.

                   18.  Voluntary Emissions Caps

                        To the extent applicable federal requirements
                        provide for averaging emissions increases and
                        decreases within a stationary source without case-
                        by-case approval, an owner or operator may request,
                        subject to approval by the APCO, permitting one or
                        more emissions unit(s) under a voluntary emissions
                        cap.  The permit for each emissions unit included
                        under a voluntary emissions cap shall include
                        federally-enforceable conditions requiring:

                        a.  Compliance with applicable federal
                            requirements, including those authorizing
                            emissions averaging;

                        b.  Compliance of all individual emissions units
                            with applicable emissions limitations,
                            standards, or other requirements;

                        c.  Any emissions limitation, standard, or other
                            requirement be enforced through continuous
                            emission monitoring, where applicable; and

                        d.  All affected emissions units under a voluntary
                            emissions cap be considered to be operating in
                            violation of the permit if the voluntary
                            emissions cap is exceeded.

                   19.  Acid Rain Units Subject to Title IV

                        The permit for an acid rain unit shall include
                        conditions requiring compliance with any federal
                        standard or requirement promulgated pursuant to
                        Title IV (Acid Deposition Control) of the CAA and
                        any federal standard or requirement promulgated
                        pursuant to Title V of the CAA, except as modified
                        by Title IV.  Acid rain unit permit conditions
                        shall include requirements of 40 CFR Part 72.9 and
                        the following:

                        a.  Sulfur dioxide emissions from an acid rain unit
                            shall not exceed  annual emissions allowances
                            (up to one ton per year of sulfur dioxide may
                            be emitted for each emission allowance
                            allotted) the source lawfully holds for such
                            unit under Title IV of the CAA or the
                            regulations promulgated pursuant to Title IV;

                        b.  Any increase in an acid rain unit's sulfur
                            dioxide emissions authorized by allowances
                            acquired pursuant to Title IV of the CAA shall
                            not require a revision of the acid rain portion
                            of the operating permit provided such increases
                            do not require permit revision under any other
                            applicable federal requirement;

                        c.  There is no limit on the number of sulfur
                            dioxide emissions allowances held by a source,
                            but a source with an acid rain unit shall not
                            use such emissions allowances as a defense for
                            noncompliance with any applicable federal
                            requirement or District requirement, including
                            District Rule 210.1 (New Source Review Rule);
                            and

                        d.  An acid rain unit's sulfur dioxide allowances
                            shall be accounted for according to procedures
                            established in regulations promulgated pursuant
                            to Title IV of the CAA.

                   20.  Portable Sources

                        The permit for any portable source, allowed to
                        operate at two or more locations, shall contain
                        conditions requiring the portable source to:

                        a.  Meet all applicable District, state, and
                            federal requirements at each location;

                        b.  Specify monitoring methods, or other methods
                            (e.g. air quality modeling) approved by the
                            APCO, demonstrating compliance with all
                            District, state, and federal requirements; and

                        c.  Notify the APCO ten working days prior to a
                            change in location.

          VII.  Supplemental Annual Fee

                Fees collected pursuant to this section shall supplement
                applicable Rules 301 and 301.3 fee requirements.

                A. Payment of Supplemental Fee

                   An owner or operator, or his designee, shall pay an
                   annual supplemental fee for a permit to operate pursuant
                   to this rule as determined by the calculation method in
                   Subsection C. to provide a District-wide fee rate of $25
                   per ton of fee-based emissions (CPI-adjusted) for all
                   facilities subject to this Rule, unless Subsection B.
                   applies.

                   1.  "Fee-based emissions" means the actual rate of
                       emissions in tons per year of any fee pollutant,
                       including fugitive emissions, emitted from all
                       stationary sources over the preceding year or any
                       other period determined by the APCO to be
                       representative of normal operation.  Fee-based
                       emissions shall be calculated using each emission
                       unit's actual operating hours, production rates, and
                       in-place control equipment; types of material
                       processed, stored, or combusted during the preceding
                       calendar year, or other time period established by
                       the APCO.

                   2.  "Fee pollutant" means oxides of nitrogen, volatile
                       organic compounds, any pollutant for which a
                       National Ambient Air Quality Standard has been
                       promulgated by the U.S. EPA (excluding carbon
                       monoxide), and any other pollutant subject to a
                       standard or regulation promulgated by the U.S. EPA
                       under the CAA or adopted by the District pursuant to
                       Section 112(g) and (j) of the CAA.  Any air
                       pollutant regulated solely because of a standard or
                       regulation under Section 112(r) of the CAA for
                       accidental release or under Title VI of the CAA for
                       stratospheric ozone protection shall not be
                       included.

                   3.  "(CPI-adjusted)" means adjusted by the percentage,
                       if any, by which the Consumer Price Index for the
                       year exceeds the Consumer Price Index for calendar
                       year 1989.  The value for (CPI-adjusted) shall be
                       obtained from the U.S. EPA.

                B. No Supplemental Fee

                   There shall not be a supplemental annual fee if:

                   1.  The total annual fee rate paid by all sources
                       subject to this Rule pursuant to Rules 301 and 303
                       (except Section III of Rule 303) (Permit Fees Rules)
                       and 301.3 (H&SC Section 44380-AB 2588 Toxic Hot
                       Spots) equals or exceeds $25 per ton of fee-based
                       emissions (CPI adjusted).  Only those AB 2588 Toxic
                       Hot Spots fees funding direct and indirect costs
                       associated with activities related to the operating
                       permits program as specified in Section 502(b)(3)(A)
                       of the CAA shall be used to meet the overall fee
                       rate of $25 per ton of fee-based emissions (CPI
                       adjusted), or

                   2.  The District satisfactorily demonstrates to
                       U.S. EPA that collection of less than the amount
                       prescribed in Subsection VII.A. is sufficient to
                       administer a program for sources subject to Title V
                       which adequately implements applicable CAA
                       requirements, or

                   3.  U.S. EPA promulgates a regulation, guidance, or
                       policy establishing a lower minimum dollars per ton.
                       Should this occur, that new minimum shall be used in
                       Subsection C, below.

                C. Determination of Supplemental Fee

                   Any supplemental annual fee due shall be determined by
                   completing the following steps:

                   1.  Step 1:  Calculation of District-wide Supplemental
                       Annual Fee:

                         S = [ $25 per ton (CPI adjusted) x e ] - F

                       where:

                       S =  supplemental District-wide annual fee in
                            dollars

                       e =  fee-based emissions in tons per year from all
                            facilities subject to this Rule.

                       F =  District-wide sum (in dollars) of annual fees
                            for sources subject to this Rule under Rule 301
                            and 303 (except Section III) and that portion
                            of Rule 301.3 fees funding direct and indirect
                            costs associated with activities related to the
                            operating permits program as specified in
                            Section 502(b)(3)(A) of the CAA.

                   2.  Step 2:  Calculation of each Facility's Supplemental
                       Annual Fee:

                               s = S x f

                       where:

                       s = Given Facility's Supplemental Annual Fee

                       S =  District-wide Supplemental Annual Fee
                            Calculated in Step 1,above

                       f =  Given Facility's decimal fraction of F used in
                            Step 1, above.

                   3.  Step 3:  When the Supplemental Annual Fee is Zero:

                       If "F" is equal to or greater than "[ $25 per ton
                       (CPI adjusted) x e ]", then "S" shall be zero and
                       Subsection B., applies.  If "F" is less than [$25
                       per ton (CPI adjusted) x e ], then "S" shall be as
                       calculated as in Step 1.

                D. Submittal of Information

                   The owner or operator, or his designee, shall provide
                   the APCO sufficient information to determine any
                   supplemental fee.