KERAPCD 210-1 NEW AND MODIFIED STATIONARY SOURCE REVIEW (NSR)

Rule 210.1 New and Modified Stationary Source Review (NSR) - Adopted 3/19/74, Amended 12/28/76, 4/25/78, 5/16/78, 1/9/79, 6/29/79, 9/12/79, 4/5/82, 4/25/83, 8/27/84, 9/16/85, 11/18/85, 6/16/86, 6/1/87, 7/11/88, 8/22/89, 8/21/90, 8/19/91,6/8/92, 7/11/96, 5/6/99

I. Purposes and Applicability

A. Rule Purposes: The purposes of this rule are to:

1. Provide for the preconstruction review of new and modified stationary sources of affected pollutants to insure emissions will not interfere with the attainment of ambient air quality standards;
2. Insure appropriate new and modified sources of affected pollutants are constructed with Best Available Control Technology; and
3. Provide for no significant net increase in emissions from new and modified stationary sources for all non-attainment pollutants and their precursors.

B. Applicability:

This Rule shall apply to all new stationary sources and all modifications to existing stationary sources subject to Rule 201 - Permits Required.

II. Definitions

A. Actual Emissions:

measured or estimated emissions most accurately representing emissions from an emissions unit.

B. Actual Emissions Reductions:

reductions of actual emissions from an emissions unit selected for emission offsets or banking. Actual emissions reductions shall be calculated pursuant to Subsection IV.C. of this Rule and shall be real, enforceable, quantifiable, and permanent, and:

C. Affected Pollutants:

air contaminants for which there are ambient air quality standards.

D. Ambient Air Quality Standards:

State and National Ambient Air Quality Standards. (For inclusion of this Rule in the State Implementation Plan, all references to ambient air quality standards shall be interpreted as National Ambient Air Quality Standards.)

E. Baseline Date: December 28, 1976.

F. Baseline Period: either

1. Three consecutive years of operation immediately prior to submission of the complete application;
2. Another time period of at least three consecutive years within five years prior to submission of the complete application determined by the Control Officer to be more representative of normal operation;
3. A shorter period of at least one year if the stationary source has not been in operation for three years provided this represents the full operating history of the stationary source. Emissions units which have operated for less than one year shall have no baseline period for determining actual emission reductions and emissions reductions credits shall be limited to actual emissions reductions provided to obtain the emissions unit's Authority to Construct.

G. Best Available Control Technology: the most stringent emission limitation or control technique of the following:

1. That achieved in practice for such emissions unit and class of source;
2. That contained in any State Implementation Plan approved by the U.S. Environmental Protection Agency for such emissions unit category and class of source (a specific limitation or control technique shall not apply if the owner or operator of the proposed emissions unit demonstrates to the satisfaction of the Control Officer that such limitation or control technique is not currently achievable); or
3. Any other emission limitation, control device, alternate basic equipment, or different fuel or process found by the Control Officer to be technologically feasible for such class or category of source or for a specific source, and cost effective as determined by official District policy.

Best Available Control Technology shall not be determined to be less stringent than the emission control required by any applicable provision of local, state, or federal, law or regulation unless the applicant demonstrates to the Control Officer that such limitations are not achievable. Application of Best Available Control Technology shall not result in the emission of any pollutant exceeding emissions allowed by any applicable New Source Performance Standard or National Emission Standard for Hazardous Air Pollutants.

H. Cargo Carrier: train dedicated to supplying raw materials, or conveying finished products for a specific stationary source.

I. Complete Application: an application for Authority to Construct a new or modified emissions unit reviewed and found to conform to the List and Criteria (see Page L&C-1 of these Rules and Regulations) adopted by the District pursuant to Article 3, Sections 65940 through 65944 of Chapter 4.5 of Division 1 of Title 7 of the Government Code, as that list exists on the date the application is received.

J. Contiguous Property or Adjacent Property: property consisting of two or more parcels of land with a common point or boundary, or separated solely by a public roadway or other public right-of-way.

K. Daily Emissions Limitation: one or a combination of permit conditions specific to an emissions unit restricting its maximum daily emissions, in pounds per day, at or below maximum design capacity emissions. A daily emissions limitation shall be:

1. Contained in the newest applicable Authority to Construct and contained in or enforceable by the newest Permit to Operate for the emissions unit;
2. Enforceable on a daily basis; and
3. Established pursuant to an NSR permitting action occurring after the Baseline Date and used in calculation of the NSR Balance or increases in permitted emissions.

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

M. Federally-Enforceable: means all limitations and conditions which are enforceable by the U.S. EPA Administrator, including those requirements developed pursuant to 40 CFR Parts 60 and 61, requirements within any applicable State Implementation Plan, any permit requirements established pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR Part 51, Subpart I, including operating permits issued under an EPA-approved program that is incorporated into the State Implementation Plan and expressly requires adherence to any permit issued under such program.

N. Fugitive Emission: emission which could not reasonably pass through a stack, chimney, vent, or other functionally-identical opening.

O. Functionally-Identical Replacement: routine maintenance, repair, replacement or modification of an emissions unit where:

1. The replacement unit performs an identical function as the unit being replaced;
2. The maximum rating of the replacement unit is not greater than the unit replaced;
3. The potential to emit of the replacement unit will not be greater than the replaced emissions unit when both are operated at the same permit conditions; and
4. The replacement unit has the same or greater degree of control for each pollutant as the unit being replaced.

P. Historic Potential To Emit: emissions based on the potential to emit of an emissions unit prior to modification. In determining the historic potential to emit, emissions limitations shall be treated as part of an emissions unit's design only if the limitations are representative of normal operations or if emission offsets were provided from a previous permitting action. For the purposes of the above determination, "normal operations" is defined as the usual or typical operation of an emissions unit resulting in actual emissions which are at least 80% of the specific limits contained in the emission unit's Authority to Construct or Permit to Operate. If there are no enforceable limiting conditions, an emissions unit's potential to emit shall be the unit's historic actual emissions. For a new emissions unit, historic potential emissions are equal to zero.

Q. Identical Replacement: total or partial replacement of an emissions unit where the replacement unit is the same as the original emissions unit in all respects except for serial number.

R. Major Modification: modification of a major stationary source resulting in an increase in potential emissions of more than 100 tons per year of CO, 40 tons per year of SOx (as SO₂), 25 tons per year of NOx, 25 tons per year of VOC's, or 15 tons per year of PM₁₀, when aggregated with all other creditable decreases and increases in emissions from the stationary source during the last 5 consecutive calendar years, including the calendar year the modification occurred.

S. Major Stationary Source: a stationary source with potential to emit 50 tons or more per year of any affected pollutant.

T. Modification:

1. A modification shall include the following:
   1. Construction of a new emissions unit;
   2. Any change in hours of operation, change in production rate, or change in method of operation of an existing emissions unit necessitating a change in permit conditions;
   3. Any physical change, or addition to an existing emissions unit. Routine maintenance or repair shall not be considered a physical change; or
   4. An increase in emissions from an emissions unit caused by modification of the stationary source when the emissions unit is not subject to a daily emissions limitation.
2. Unless previously limited by a permit condition, the following shall not be considered modifications and shall not be subject to provisions of this Rule:
   1. Construction of an identical replacement, or at a non-major stationary source, a functionally-identical replacement provided the Control Officer determines there is no increase in maximum rating, and the potential to emit any affected pollutant will not be greater from the new emissions unit than from the replaced emissions unit. An exemption for a functionally identical replacement shall be requested and obtained in writing;
   2. Change of ownership of an existing emissions unit with a valid Permit to Operate; or
   3. Transfer of location of an emissions unit with a valid Permit to Operate and within a stationary source.
3. A reconstructed stationary source shall be treated as a new stationary source and not as a modification.

U. Non-Attainment Pollutant: any pollutant for which an ambient air quality standard was exceeded within the District more than three discontinuous times (or, for annual standards, more than one time) within the three years immediately preceding the date an application for the Authority to Construct is filed, or which has been designated "nonattainment" pursuant to final rule-making by the U.S. Environmental Protection Agency (and published in the Federal Register), or which has been designated nonattainment by the California Air Resources Board pursuant to Section 39607 of the California Health and Safety Code. Any pollutant which is a precursor to a nonattainment pollutant shall be considered a nonattainment pollutant.

V. Potential to Emit: the maximum capacity of an emissions unit to emit a pollutant under its physical and operational design limitations. Any physical or operational limitation on the capacity of the source to emit a pollutant, including pollution control equipment and restrictions in hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or the effect it would have on emissions is incorporated into the applicable permit as an enforceable permit condition. Potential to emit shall include directly-emitted fugitive emissions.

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

X. Precursor: a directly emitted air contaminant that, when released into the atmosphere, forms or causes to be formed or contributes to the formation of a secondary air contaminant for which an ambient air quality standard exists, or whose presence in the atmosphere will contribute to the exceedance of one or more ambient air quality standards.

The following precursor-secondary air contaminant relationships shall be used for the purposes of this Rule:

Precursor	Secondary Air Contaminant
Volatile Organic Compounds (VOC)	a. Photochemical oxidants (Ozone) b. Organic fraction of PM10
Nitrogen Oxides (NOx)	a. Nitrogen dioxide b. Nitrate fraction of PM10 c. Photochemical oxidants (Ozone)
Sulfur Oxides (SOx)	a. Sulfur dioxide b. Sulfates c. Sulfate fraction of PM10

Y. Reconstructed Source: any stationary source undergoing reconstruction when the fixed capital cost of the new components exceeds 50 percent of the fixed capital cost of a comparable, entirely new stationary source. Fixed capital cost is the capital needed to provide all depreciable components. A reconstructed stationary source shall be considered a new stationary source and not a modification.

Z. Seasonal Source: any stationary source having more than 90 percent of its annual emissions occurring within a consecutive 120-day period.

AA. Secondary Emissions: means emissions occurring as a result of construction or operation of a major stationary source or major modification, but not emitted by the major stationary source, or major modification itself. For purposes of this Rule, secondary emissions must be specific, well defined, quantifiable, and impact the same general area as the major stationary source or major modification which causes the secondary emissions. Secondary emissions include emissions from any offsite support facility which would not otherwise be constructed or increase its emissions as a result of construction or operation of the major stationary source or major modification. Exhaust emissions from vehicles registered for use on highways shall not be considered secondary emissions.

BB. Stationary Source: any structure, building, facility, or installation which emits or may emit any affected pollutant directly (or as a fugitive emission). "Structure, building, facility or installation" includes all pollutant emitting activities, including emissions units:

1. Located on one or more contiguous or adjacent properties;
2. Under the same or common ownership or entitlement to use, or owned or operated by entities under common control; and
3. Belonging to the same industry either by being within the same two-digit Standard Industrial Classification Code; or
4. By being part of a common industrial process, manufacturing process, or connected process involving a common raw material.

CC. Temporary Replacement Emissions Unit (TREU): an emissions unit on site for less than six months and replacing an existing emissions unit shut down for maintenance or repair. Emissions from a TREU cannot exceed emissions from the existing emissions unit. An emissions unit not removed within 180 days is not a TREU.

DD. Volatile Organic Compound (VOC): any compound containing at least one atom of carbon except for exempt compounds listed in Rule 102, Subsection L.

III. Requirements

A. Best Available Control Technology:

1. An applicant shall provide Best Available Control Technology for all affected pollutants expected to be emitted from a new emissions unit and for all affected pollutants expected to increase from a modified existing emissions unit.
2. Exemptions: BACT shall not be required for:
   1. A new emissions unit or modification of an existing emissions unit for carbon monoxide in attainment areas (compliance with applicable PSD requirements is necessary);
   2. A cargo carrier;
   3. A new emissions unit or modification of an existing emission unit solely tocomply with District, state, or federal air pollution control laws, regulations, or orders, as approved by the control officer, provided there is no increase in maximum rating. This exemption only applies to the affected pollutant regulated by the applicable prohibitory rule, unless the prohibitory rule specifically exempts from Rule 210.1 emissions of other affected pollutants;
   4. A new emissions unit or modification of an existing emissions unit resulting in a voluntary reduction in emissions for the sole purpose of generating Emission Reduction Credits. This exemption applies only to the pollutant qualifying for emission reduction credits;
   5. Temporary replacement emissions units;
   6. Modifications solely consisting of administrative changes to the permit, including changes to continuous emissions monitoring components, instruments, or replacement of components of an emission unit which have no effect on the quantity of affected pollutants emitted from an emission unit; and
   7. Portable internal combustion engines used by the Department of Defense or National Guard exclusively for military tactical support or other federal emergency purposes, as specified in Section 41754 of the California Health and Safety Code.

B. Offsets:

1. An applicant shall provide offsets as set forth in Subsections III.B.3., III.B.4., and III.B.5.
2. Exemptions: Offsets shall not be required for:
   1. Emergency equipment used exclusively as emergency standby equipment for non-utility electrical power generation or any other emergency equipment, as approved by the Control Officer, not operating more than 200 hours per year and not used in conjunction with any utility voluntary demand reduction program. Equipment exempted by this provision shall submit yearly hours of operation demonstrating qualification for continued exemption prior to permit renewal and hours of operation shall be logged monthly;
   2. Relocation of an emissions unit with a valid District Permit to Operate, not emitting more than 45 days at any one location in the District within a 12-month period, and not used as a replacement of a emissions unit operating more than 45 days at any one stationary source within a 12 month period. An operator of equipment exempted by this provision shall maintain records of dates of operation at each stationary source to demonstrate qualification for continued exemption;
   3. Transfer of location within the District of an existing stationary source with valid Permits to Operate to a new location at which the transferred equipment would not constitute an addition to an existing stationary source, provided:
      1. no other changes occur, including changes in offset ratio if the source previously required offsets;
      2. the permitted emission of any affected pollutant will not be greater at the new location; and
      3. there will be no adverse public health impact created.
   4. A new emissions unit or modification of an existing emissions unit solely to comply with District, state, or federal air pollution control laws, regulations, or orders, as approved by the control officer, provided there is no increase in maximum rating. This exemption only applies to the affected pollutant regulated by the applicable prohibitory rule unless the prohibitory rule specifically exempts the emissions of other affected pollutants from Rule 210.1 requirements;
   5. Modifications solely consisting of administrative changes to the permit, including changes to continuous emissions monitoring components, instruments, or replacement of components of an emission unit having no effect on the quantity of pollutants emitted;
   6. Notwithstanding provisions of Subsection III.B.2., the Control Officer shall not grant exemption from offsets for any emissions increases interfering with implementation of the latest adopted Air Quality Attainment Plan.
3. For PM₁₀, SOx, NOx, and VOC in U.S. EPA and/or CARB designated PM₁₀, SOx, NOx, or Ozone nonattainment areas:
   1. a. A new or modified stationary source of PM₁₀ or SOx shall provide offsets when the NSR balance calculated pursuant to Subsection IV.D. equals or exceeds the following offset trigger levels; a new or modified stationary source of NOx and VOC shall provide offsets when the source's potential to emit calculated pursuant to Subsection IV.E. equals or exceeds the following offset trigger levels:
      
      

      PM10	*************************************************************	15 tons/yr*
      SOx (as SO2)	*************************************************************	27 tons/yr*
      VOC	*************************************************************	25 Tons/Year
      NOx (as NO2)	*************************************************************	25 Tons/Year

      
      * After a stationary source's NSR balance equals or exceeds these levels and offsets have been provided fully offsetting the NSR balance, any additional increase in the balance shall be offset.
      
      
   2. PM₁₀ emissions from an existing stationary source shall be recalculated from total suspended particulate emissions increases and decreases occurring since the baseline date using appropriate PM₁₀ emission factors. If appropriate factors do not exist, PM₁₀ shall be assumed to be 50% by weight of total suspended particulate matter.
   3. If an existing stationary source has, since December 28, 1976, but before August 22, 1989, provided offsets for total suspended particulate emissions, such total suspended particulate matter shall not be recalculated as PM₁₀. However, any subsequent increase in PM₁₀ emissions shall be offset.
4. Quantity of Offsets:
   1. A new or modified stationary source subject to offset requirements shall provide actual emission reductions calculated on an annual basis, and multiplied by the appropriate offset ratio. All emissions associated with cargo carriers and secondary emissions shall also be offset when offset trigger levels set forth in Subsection III.B.3. and/or III.B.4. are equaled or exceeded (not including cargo carrier or secondary emissions). The quantity of offsets shall be established on an annual basis using Subsection IV.F.
   2. All banked emission reductions used to provide offsets shall have been accounted for in the District's most recent District air quality attainment plan emission inventory (except out-of-district offsets).
5. Offset Ratios: A new or modified stationary source subject to offset requirements of Subsection III.B.3. shall provide offsets by providing actual emission reductions in accordance with the following ratios:

   Location of Emission Offset	Volatile Organic compounds or Nitrogen Oxides	Sulfur Oxides or PM10
   For use by major stationary sources or major modifications	Emission Offset Ratio:
   Same Source	1.3 to 1.0	1.0 to 1.0
   Within 15-mile radius and within the District	1.3 to 1.0	1.2 to 1.0
   Greater than 15-mile but within 50-mile radius and within the District	2.0 to 1.0	2.0 to 1.0
   More than 50-mile radius	Greater than 3.0 to 1.0	Greater than 3.0 to 1.0
   For use by non-major stationary sources or non-major modifications
   Same Source	1.0 to 1.0	1.0 to 1.0
   Within 15-mile radius and within the District	1.2 to 1.0	1.2 to 1.0
   Greater than 15-mile but within 50-mile radius and within the District	2.0 to 1.0	2.0 to 1.0
   More than 50-mile radius	Greater than 3.0 to 1.0	Greater than 3.0 to 1.0

   Note: If interpollutant offsets are utilized, appropriate additional ratios apply.

6. Offsets Criteria: Offsets provided to satisfy this rule shall meet the following criteria:

1. Existing source shutdowns or permanent curtailments in production or operating hours occurring before an application is filed may not be used as offsets for emissions from a major source or a major modification.
2. Offsets located in a district other than KCAPCD may be used only if the Control Officer has reviewed the banking certificate(s) and associated permit(s) and has verified these documents meet requirements of this Rule and Section 40709.6 of the California Health and Safety Code.
3. Interpollutant offsets may be approved by the Control Officer with written CARB and U.S. EPA concurrence on a case-by-case basis provided the applicant demonstrates, with appropriate modeling in accordance with provisions of Subsection III.C.2.a., that emissions increases from the new or modified source will not cause or contribute to a violation of an ambient air quality standard. Exempt compounds shall not be used as offsets for volatile organic compounds. Interpollutant offsets between PM₁₀ and PM₁₀ precursors may be allowed. PM₁₀ shall not be allowed to offset nitrogen oxide or volatile organic compound emissions.
4. Offsets for new or modified seasonal sources shall be provided as for nonseasonal sources. Offsets for seasonal sources shall occur during corresponding periods of source operation.

C. Additional Requirements:

1. Alternative siting: For sources requiring an analysis of alternative sites, sizes, and production processes and environmental control techniques, pursuant to Section 173 of the Federal Clean Air Act, the applicant shall prepare an analysis functionally equivalent to requirements of Division 13, Section 21000 et. seq. of the Public Resources Code.
2. Any new major source or modification to a major source shall be subject to review of its impact on visibility in any mandatory class I area in accordance with 40 CFR 51.307(b)(2).
3. Modeling:
   1. Emissions from a new or modified stationary source shall not make worse an exceedance of an ambient air quality standard. In making this determination the Control Officer shall take into account increases in cargo carrier and secondary emissions and offsets provided pursuant to this Rule. Modeling used for the purposes of this Rule shall be consistent with requirements of the most recent edition of U.S. EPA's "Guideline on Air Quality Models" unless the Control Officer finds such models are inappropriate for use. After making such finding, the Control Officer may designate an alternative model only after public comment and written concurrence of CARB, and U.S. EPA.
   2. A new or modified emissions unit shall be exempt from provisions of Subsection a., above, provided:
      1. offsets have been provided for all increases in permitted emissions including fugitive, cargo carrier, and secondary emissions, or
      2. the emissions unit is not subject to noticing requirements of Subsection V.A.3.
4. Compliance Certification: The owner or operator of a proposed new major source or major modification shall certify in writing that all major stationary sources owned or operated by such person (or by any entity controlling, controlled by, or under common control with such person) in California, and subject to emission limitations, are in compliance or on a schedule for compliance with all applicable emission limitations and standards.

IV. Emissions Calculations

A.Terms:

The following terms are used in this subsection and are defined as follows:

B. Calculating Increases in Permitted Emissions:

Increases in potential to emit are always "positive"; any "increase" which is negative shall be set to zero.

1. Functionally-Identical Replacement:

IPE = PE (for replacement unit) - HPE (for unit being replaced);

2. New Emissions Unit:

IPE = PE (for the new emissions unit);

3. Modification of an existing emissions unit:

IPE = PE (for modified unit) - HPE (for modified unit prior to modification).

C. Calculating Actual Emission Reductions:

Actual emissions reductions are always positive, any "reduction" which is negative shall be set to zero.

1. Reduction in operating hours and/or throughput rates:

AER = (HAE - PE);

2. Shutdown of an emissions unit:

AER = HAE (for the unit prior to shutdown);

3. Actual Emission Reduction due to installation of a control device, implementation of a more efficient process or material, or use of a lower emitting fuel:

AER = HAE [(1-CE_BEFORE)-(1-CE_AFTER)].

Actual emission reductions calculated pursuant to Subsections IV.C. can be used to offset onsite increases in permitted emissions (IPE), banked for future onsite offsets, or transferred to other entities, pursuant to the requirements of this Rule and the District's Banking Rule, Rule 210.3. Onsite actual emissions reductions used to offset contemporaneous onsite increases in permitted emissions (IPE) are not required to obtain emission reduction credit banking certificates, but must satisfy requirements of Rule 210.3.

D. Calculating New Source Review (NSR) Balances for PM₁₀ and SOx:

Stationary source NSR Balances shall be calculated separately for each pollutant. A stationary source's NSR Balance cannot be greater than the stationary source's potential to emit, including any banked emission credits or less than zero. NSR Balances shall be calculated as follows:

1. Effective August 19, 1991 the Control Officer shall set an NSR balance equal to the stationary source cumulative net emissions change for all applications deemed complete after the baseline date and prior to August 19, 1991. Emissions changes (increases and decreases) shall be those quantified by KCAPCD for each affected Authority to Construct or application. If the existing cumulative net emissions change is less than zero, the NSR balance shall be set to zero; historic actual emission reductions may be bankable subject to requirements of Rule 210.3. For emission units added, modified, or shutdown after August 19, 1991, adjustments made to an NSR balance shall be made pursuant to Subsections IV.D.2. and IV.D.3 of this Rule.
2. Each stationary source NSR Balance (for PM₁₀ and SOx) shall be the sum of:
   1. Positive cumulative net emissions changes as of August 19, 1991;
   2. Potential to emit for all emissions units with applications deemed complete after August 19, 1991, as authorized by the latest Permit to Operate, or based on a valid Authority to Construct. If more than one valid Authority to Construct exists for the same emissions unit, the Permit to Operate or Authority to Construct with highest potential to emit shall be used;
   3. All increases in permitted emissions authorized by valid or implemented Authorities to Construct for emissions units in existence prior to August 19, 1991 and modified after August 19, 1991;
   4. Banked emissions to the extent these reductions have been included in the NSR Balance pursuant to Subsection IV.D.3.a.; and
   5. Potential to emit for cargo carriers and secondary source operation associated with major sources or major modifications if the NSR Balance equals or exceeds an offset trigger level set forth in Subsection III.B.3.
3. The following shall be subtracted when determining a stationary source NSR Balance:
   1. Actual emission reductions authorized by implemented Authorities to Construct for source operations in existence prior to August 19, 1991 and modified or shutdown after August 19, 1991, but only if the stationary source was originally charged with a positive emission change pursuant to Subsection IV.D.2.c.;
   2. Banked emission reduction credits, representing onsite emission reductions from the stationary source, voluntarily surrendered to the District;
   3. Potential to emit for emissions units included in the NSR balance for each expired or canceled Authority to Construct or Permit to Operate, provided emissions reduction credits have not been obtained pursuant to rule 210.3;
   4. Actual emission reductions represented by Authority to Construct provided historical actual emission reduction credits have not been obtained pursuant to Rule 210.3; and
   5. Potential to emit for each valid Authority to Construct or Permit to Operate for source operations exempt from offsets by Subsection III.B.2. to the extent these were included in NSR Balance in Section IV.D.2.

E. Calculating Stationary Source Potential to Emit for NOx and VOC:

1. Each stationary source potential to emit shall be the sum of the following:
   1. Potential to emit for all source operations based upon current Permits to Operate and Authorities to Construct. If specific conditions contained in an Authority to Construct or the Permit to Operate restrict emissions, these limitations shall be used to calculate potential to emit.
   2. Increases in potential to emit authorized by valid Authorities to Construct for the stationary source in effect on June 8, 1992 and issued since;
   3. Banked emission reduction credits for actual emission reductions which have occurred at the source; and
   4. Cargo carrier and secondary source emissions associated with major sources or major modifications, if the stationary source potential to emit exceeds a trigger level set forth in Subsection III.B.3.
2. The following shall be subtracted when determining a stationary source potential to emit:
   1. Potential to emit for each expired or canceled Authority to Construct or Permit to Operate, provided emission reduction credits have not been applied for pursuant to Rule 210.3;
   2. Actual emission reductions provided emission reduction credits have not been obtained pursuant to Rule 210.3;
   3. Banked emission reduction credits, representing onsite emission reductions from the stationary source voluntarily surrendered to the District; and
   4. Potential to emit for each valid Authority to Construct or Permit to Operate for source operations exempt from offsets by Subsection III.B.2.

F. Calculating Offset Requirements:

When offsets are triggered pursuant to Subsection III.B.3., the quantity of offsets shall be determined as follows:

1. If the NSR balance or the stationary source potential to emit equals or exceeds an offset trigger level in Section III.B.3.,

for PM₁₀ or SOx:

Offset = NSR Balance x Offset Ratio;

for NOx or VOC:

Offset = Stationary Source Potential to Emit x Offset Ratio.

2. If the stationary source equals or exceeds a trigger level due to a KCAPCD rule change, e.g. loss of permit exemption or change in offset trigger level,

for PM₁₀ or SOx:

Offset = [NSR Balance (post project) - NSR Balance (immediately prior to rule change)] x Offset Ratio;

for NOx or VOC lesser of:

a. IPE x Offset Ratio, or

b. (SSPE - Offset Trigger Level) x Offset Ratio

3. If the stationary source has previously offset the entire NSR balance or stationary source potential to emit,

for PM₁₀, SOx, NOx, or VOC:

Offset = Increase in Permitted Emissions x Offset Ratio.

V. Administrative Requirements

A. New and Modified Emissions Units: Administrative requirements of this section shall apply to all applications for new or modified emissions units except for power plant applications of over 50 megawatts. For such power plants the administrative requirements of Subsection V.B. shall apply.

1. Complete Application:

The Control Officer shall determine whether an application is complete not later than 30 days after receipt. If the Control Officer determines the application is not complete, the applicant shall receive written notification of this decision and a request for the information required. Upon receipt of additional information, a new 30-day period shall begin. Completeness of an application shall be determined on the basis of the District's "List and Criteria" (see Page L&C-1) in effect on the date the application or additional information is received. Upon determination the application is complete, the Control Officer shall notify the applicant in writing. The Control Officer may, during application processing, request an applicant to clarify, amplify, correct, or otherwise supplement information submitted in the application.

2. Preliminary Decision:

Following acceptance of an application as complete, the Control Officer shall perform the analysis necessary to determine compliance with this rule and make a preliminary written decision to approve (or deny) the Authority to Construct. The Control Officer shall deny any application for Authority to Construct if the Control Officer finds the proposal will not comply with the standards set forth in this Rule (or any other District Rule). The decision shall be supported by a succinct, written analysis.

3. Notification and Publication of Preliminary Decision to Approve:

1. Requirements of the following Subsections (V.A.3.b. through V.A.3.d.) do not apply unless:
   1. the application represents an emission increase and is for a new or modified stationary source with a stationary source NSR balance equal to or more than 27 tons/yr of sulfur oxides, or equal to or more than 15 tons/yr of PM₁₀, or
   2. the application represents an emission increase and is for a new or modified stationary source for which emissions offsets from a different stationary source will be provided.
2. Within 10 calendar days following a preliminary decision to approve, the Control Officer shall publish in at least one newspaper of general circulation in the District a notice stating the preliminary decision of the Control Officer, noting how pertinent information can be obtained, and inviting written public comment for a 30-day period following the date of publication.
3. The Control Officer shall transmit to the applicant his preliminary written decision to approve and a copy of the notice submitted for publication, no later than the date of publication.
4. The Control Officer shall transmit to the California Air Resources Board and the U.S. Environmental Protection Agency and to any person requesting such information his preliminary written decision, analysis, and a copy of the notice submitted for publication, no later than the date of publication.

4. Public Inspection of Preliminary Decision Documents:

No later than the publication date of the notice of preliminary decision, the Control Officer shall make available for public inspection at the District Office information submitted by the applicant, and the Control Officer's analysis. Trade secrets shall be processed in accordance with Rule 103 of these Rules and Regulations, Section 6254.7 of the Government code, and relevant sections of the California Administrative Code.

5. Final Action:

Within 180 days after acceptance of an application as complete, or within 180 days after the lead agency has approved the project under the California Environmental Quality Act, whichever occurs later, the Control Officer shall take final action on the application after considering all written comments.

6. Notification and Publication of Final Action:

The Control Officer shall provide written notice of the final action to the applicant, the U.S. Environmental Protection Agency, and the California Air Resources Board, and shall publish such notice in a newspaper of general circulation. An application not subject to the Notification and Publication of Preliminary Decision requirements shall not be subject to the Notification and Publication of Final Action requirements of this section. In such case the applicant shall receive notification as provided in Rule 206.

7. Public Inspection of Final Action Documents:

No later than the publication date of the notice of final action the Control Officer shall make available for public inspection at the District office a copy of the notice submitted for publication and all supporting documents. Information submitted which contains trade secrets shall be processed in accordance with Rule 103 of these Rules and Regulations, Section 6254.7 of the Government Code, and relevant sections of the California Administrative Code.

8. Public Notice, Schools:

Prior to approving any application for an Authority to Construct a new or modified source expected to emit any substance on the list required to be prepared pursuant to Section 44321 of the California Health and Safety code and located within 1000 feet of from the outer boundary of a school, the Control Officer shall:

1. Prepare a public notice fully describing the proposed new or modified source and proposed emissions, and
2. Distribute such notice at the expense of the applicant to parents of children attending any school within one-quarter mile of the source and to each address within a radius of 1000 feet of the proposed new or modified source at least 30 days prior to the date final action on the application is to be taken by the Control Officer. The Control Officer shall review and consider all comments received during the 30 days after the notice is distributed, and shall include written responses to such comments in the permit application file prior to approving the application.

9. Authority to Construct - General Conditions:

1. an Authority to Construct shall not be issued unless the new or modified source complies with provisions of this Rule and all other applicable District Rules and Regulations;
2. an Authority to Construct shall require the new or modified source to be built according to specifications and plans contained in the application;
3. an Authority to Construct shall include all federally-enforceable conditions necessary to assure construction and operation in the manner assumed in the District's analysis to determine compliance with this Rule; and
4. an Authority to Construct shall include all federally-enforceable conditions necessary to insure fulfillment of offset requirements.

10. Permit to Operate - General Conditions:

1. a Permit to Operate shall require the new source or modification to be operated in the manner assumed in the District's analysis to determine compliance with this Rule and as conditioned in the Authority to Construct;
2. a Permit to Operate shall include daily emissions limitation(s), annual emission limits, and other federally-enforceable conditions reflecting applicable emission limits, including offset requirements;
3. the Control Officer shall verify all conditions specified in the Authority to Construct have been satisfied prior to issuance of the Permit to Operate; and
4. a Permit to Operate shall conform to applicable requirements of Title V of the 1990 Federal Clean Air Act Amendments.

11. Permit to Operate - Offset Conditions:

1. as a condition for issuance of a Permit to Operate, any source providing offsets shall be subject to federally-enforceable permit conditions containing specific operational and emissions limitations, ensuring emissions reductions will be provided in accordance with provisions of this Rule and will continue for the reasonably expected life of the proposed source. Where the Control Officer is prohibited from issuing a Permit to Operate to the source of offsets, a written contract shall be required between the applicant and the owner or operator of such source, which contract, by its terms, shall be enforceable by the Control Officer. The permit and contract shall be submitted to the California Air Resources Board to be forwarded to the U.S. Environmental Protection Agency as part of the State Implementation Plan. A violation of the emission limitation provisions of any such contract shall be grounds for permit revocation.
2. offsets required as a condition of an Authority to Construct or a Permit to Operate shall commence not later than the date of initial operation of the new or modified source.

B. Electrical Power Plants Over 50 Megawatts:

All power plants over 50 megawatts proposed to be constructed in the District and for which a Notice of Intention of Application of Certification has been accepted by the California Energy Commission (CEC) shall comply with applicable state law, this Rule, and CEC regulations.