PLAAPCD RULE 502 NEW SOURCE REVIEW
LAST REVISED 11/03/94
                                   
                                   Adopted 11-12-74
                   (Amended 05-24-77, 06-19-79, 09-21-93, 11-03-94)


                                       CONTENTS

          100  GENERAL

               101  PURPOSE
               102  APPLICABILITY
               110  EXEMPTION, EMERGENCY ELECTRICAL GENERATING EQUIPMENT
               111  EXEMPTION, NOTIFICATION REQUIREMENTS
               112  EXEMPTION, RELOCATED EQUIPMENT
               113  EXEMPTION, REPLACEMENT EQUIPMENT
               114  EXEMPTION, RULE COMPLIANCE
               115  EXEMPTION, TEMPORARY SOURCES

          200  DEFINITIONS

               201  ACTUAL EMISSIONS
               202  ACTUAL EMISSION REDUCTIONS
               203  ACTUAL INTERRUPTIONS OF ELECTRICAL POWER
               204  ACTUAL OPERATING DAYS
               205  AFFECTED POLLUTANTS
               206  AMBIENT AIR QUALITY STANDARDS
               207  BEST AVAILABLE CONTROL TECHNOLOGY
               208  CALIFORNIA ENVIRONMENTAL QUALITY ACT
               209  CARGO CARRIERS
               210  COMMENCE
               211  COMPLETE APPLICATION
               212  CONSTRUCTION
               213  CONTIGUOUS PROPERTY
               214  COST-EFFECTIVE
               215  ELECTRICAL POWER PLANT
               216  EMISSION DECREASE
               217  EMISSIONS LIMITATION
               218  EMISSIONS UNIT
               219  FUGITIVE EMISSIONS
               220  HALOGENATED HYDROCARBONS
               221  HAZARDOUS AIR POLLUTANT
               222  HISTORIC ACTUAL EMISSIONS
               223  HISTORIC POTENTIAL EMISSIONS
               224  LAKE TAHOE AIR BASIN
               225  MAJOR STATIONARY SOURCE
               226  MAJOR MODIFICATION
               227  MODIFICATION
               228  MOUNTAIN COUNTIES AIR BASIN
               229  NON-ATTAINMENT POLLUTANT
               230  PM10
               231  PORTABLE EQUIPMENT
               232  POTENTIAL TO EMIT
               233  PRECURSOR
               234  PRIORITY RESERVE BANK
               235  PROPOSED EMISSIONS
               236  QUARTERLY
               237  QUARTERLY EMISSION LIMITATION
               238  REACTIVE ORGANIC COMPOUND
               239  RECONSTRUCTED SOURCE
               240  REDUCED SULFUR COMPOUNDS
               241  REGULATED AIR POLLUTANT
               242  REPLACEMENT EQUIPMENT
               243  SACRAMENTO VALLEY AIR BASIN
               244  STATIONARY SOURCE
               245  TEMPORARY SOURCE
               246  TOTAL REDUCED SULFUR COMPOUNDS

          300  STANDARDS

               301  BEST AVAILABLE CONTROL TECHNOLOGY
               302  OFFSET REQUIREMENTS, GENERAL
               303  LOCATION OF OFFSETS AND OFFSET RATIOS
               304  INTERPOLLUTANT OFFSETS
               305  EMISSION REDUCTIONS, SHUTDOWNS AND CURTAILMENTS
               306  AMBIENT AIR QUALITY STANDARDS AND AIR QUALITY
                    INCREMENTS
               307  DENIAL, FAILURE TO MEET STANDARDS
               308  CEQA APPLICABILITY
               309  DENIAL, FAILURE TO MEET CEQA

          400  ADMINISTRATIVE REQUIREMENTS

               401  COMPLETE APPLICATION
               402  AIR QUALITY MODELS
               403  PRELIMINARY DECISION
               404  PUBLICATION AND PUBLIC COMMENT
               405  PUBLIC INSPECTION
               406  AUTHORITY TO CONSTRUCT, FINAL ACTION
               407  REQUIREMENTS, PERMIT TO OPERATE
               408  ISSUANCE, PERMIT TO OPERATE
               409  REGULATIONS IN FORCE GOVERN
               410  CALCULATION OF EMISSIONS - BACT
               411  CALCULATION OF EMISSIONS - OFFSETS TRIGGER FOR ROC, NOX
                    AND CO
               412  CALCULATION OF EMISSIONS - OFFSETS TRIGGER FOR SOX AND
                    PM10
               413  CALCULATION OF EMISSIONS - OFFSETS GENERAL
               414  CALCULATION OF EMISSIONS - OFFSETS REQUIRED FOR ROC,
                    NOX AND CO
               415  CALCULATION OF EMISSIONS - OFFSETS REQUIRED FOR SOX AND
                    PM10
               416  POWER PLANTS

          500  MONITORING AND RECORDS

               501  RECORDKEEPING
          
          
          
          100  GENERAL

               101  PURPOSE:  The purpose of this rule is to provide for
                    the review of new and modified stationary air pollution
                    sources and to provide mechanisms, including emission
                    offsets, by which authorities to construct for such
                    sources may be granted without interfering with the
                    attainment or maintenance of ambient air quality
                    standards.

               102  APPLICABILITY:  This rule shall apply to all new
                    stationary sources and emissions units and all
                    modifications to existing stationary sources and
                    emissions units which, after construction, emit or may
                    emit any affected pollutants or regulated pollutants to
                    which Rule 507, FEDERAL OPERATING PERMIT PROGRAM,
                    applies.  This rule shall not apply to prescribed
                    burning of forest, agriculture or range land; open
                    burning in accordance with District Regulation 3, OPEN
                    BURNING; road construction or any non-point source
                    common to timber harvesting or agricultural practices.
                    Exemptions allowed in this Section shall not be used to
                    exempt any stationary source or modification, which
                    would be subject to review under U.S. Environmental
                    Protection Agency (EPA) regulations or review pursuant
                    to Rule 507, FEDERAL OPERATING PERMIT PROGRAM, from
                    permit requirements.  The regulations in effect at the
                    time any application for an Authority to Construct is
                    deemed complete shall apply.

               110  EXEMPTION, EMERGENCY ELECTRICAL GENERATING EQUIPMENT:
                    Except as otherwise required for sources subject to the
                    requirements of Title V of the Federal Clean Air Act as
                    amended in 1990 (42 U.S.C. Section 7401 et seq.), and
                    pursuant to Rule 507, FEDERAL OPERATING PERMIT PROGRAM,
                    the Air Pollution Control Officer shall exempt an
                    application from the requirements of Sections 302, and
                    303, if the emissions unit would provide emergency
                    electrical power or if the emissions unit would provide
                    emergency water pumping for flood control or emergency
                    fire fighting and is not a major source or major
                    modification, provided the requirements of Sections
                    110.1 and 110.2 are met.  This exemption shall not
                    apply to emissions units supplying power to a serving
                    utility for distribution on the electric transmission
                    grid nor the operation of standby power sources due to
                    a voluntary reduction in power by the serving utility.

                    110.1     Operation for maintenance purposes of
                              internal combustion engines used solely as a
                              source of emergency electrical power, not
                              otherwise exempt, shall be limited to 100
                              hours per year, and such maintenance shall be
                              scheduled in cooperation with the District so
                              as to have no adverse air quality impact or
                              shall mitigate by emission offsets or onsite
                              reductions so that there is no net increase
                              in emissions; and

                    110.2     Operation for other than maintenance purposes
                              shall be limited to actual interruptions of
                              electrical power by the serving utility.
                              Operation shall not exceed 24 hours without
                              prior authorization by the Air Pollution
                              Control Officer.

               111  EXEMPTION, NOTIFICATION REQUIREMENTS:  Except as
                    otherwise required for sources subject to the
                    requirements of Title V of the Federal Clean Air Act as
                    amended in 1990 (42 U.S.C. Section 7401 et seq.), and
                    pursuant to Rule 507, FEDERAL OPERATING PERMIT PROGRAM,
                    the requirements of Sections 403, 404, 405, and 406.2
                    relating to notification, publication, and public
                    inspection of Preliminary Decisions; and notification,
                    publication, and public inspection of final action
                    shall not apply if the application is for a new or
                    modified stationary source or emissions unit which does
                    not trigger a requirement for offsets, calculated
                    pursuant to Sections 413, 414 or 415, as applicable.
               112  EXEMPTION, RELOCATED EQUIPMENT:  The requirements of
                    Sections 302 and 303 shall not apply to relocation of
                    emission units solely within the District and within
                    only on air basin of which the District is part, and
                    the relocation does not result in an increase in
                    emissions.  This exemption is subject to the
                    performance of an air quality analysis pursuant to
                    Section 306.

               113  EXEMPTION, REPLACEMENT EQUIPMENT:  The requirements of
                    Sections 302 and 303 shall not apply to replacement
                    equipment, providing the replacement does not result in
                    any emissions increase.

               114  EXEMPTION, TEMPORARY SOURCES:  The requirements of
                    Sections 302 and 303 shall not apply to temporary
                    stationary emission sources, emission units, and
                    portable equipment which will be operated on a
                    temporary basis.  This exemption is subject to the
                    performance of an air quality analysis pursuant to
                    Section 306.

               115  EXEMPTION, RULE COMPLIANCE:  The requirements of
                    Sections 302 and 303 shall not apply to modifications
                    necessary to comply with standards contained in
                    Regulation 2, PROHIBITIONS.  This Section shall not
                    apply to modifications in production rate, hours of
                    operation, or other changes or additions to existing
                    equipment not necessary for compliance with standards
                    contained in Regulation 2, PROHIBITIONS.

          200  DEFINITIONS:  Unless otherwise defined below, the terms used
               in this rule are defined in Rule 504, EMISSIONS REDUCTION
               CREDITS; and Rule 507, FEDERAL OPERATING PERMIT PROGRAM.

               201  ACTUAL EMISSIONS - Measured or estimated emissions
                    which most accurately represent the emissions from an
                    emissions unit.  Fugitive emissions associated with the
                    emissions unit shall be included in the actual
                    emissions of the emissions unit.

               202  ACTUAL EMISSIONS REDUCTIONS - Reductions of actual
                    emissions from an emissions unit selected for on-site
                    (internal) or off-site (external) emissions offsets.
                    Actual emission reductions shall be calculated,
                    adjusted and certified pursuant to Rule 504, EMISSION
                    REDUCTION CREDITS, or to applicable federal
                    requirements.

               203  ACTUAL INTERRUPTIONS OF ELECTRICAL POWER - When
                    electrical service is interrupted by an unforeseeable
                    event.

               204  ACTUAL OPERATING DAYS - Any day of operation which
                    results in the emission of an affected pollutant from
                    the emissions unit.

               205  AFFECTED POLLUTANTS - Reactive organic compounds (ROC),
                    nitrogen oxides (NOx), sulfur oxides (SOx), PM10,
                    carbon monoxide (CO), lead, vinyl chloride, sulfuric
                    acid mist, hydrogen sulfide, total reduced sulfur, and
                    reduced sulfur compounds, or any other pollutant or
                    precursor for which an ambient air quality standard has
                    been established by the U.S. Environmental Protection
                    Agency or the California Air Resources Board.

               206  AMBIENT AIR QUALITY STANDARDS -  State and federal
                    ambient air quality standards for the purpose of
                    submittal to the US Environmental Protection Agency for
                    inclusion in the California State Implementation Plan.
                    All references in this rule to Ambient Air Quality
                    Standards shall be interpreted as National Ambient Air
                    Quality Standards.
               207  BEST AVAILABLE CONTROL TECHNOLOGY (BACT):
                    207.1     For any emissions unit the most stringent of:
                         a.   The most effective emission control device,
                              emission limit, or technique, singly or in
                              combination, which has been required or used
                              for the type of equipment comprising such an
                              emissions unit unless the applicant
                              demonstrates to the satisfaction of the Air
                              Pollution Control Officer that such
                              limitations required on other sources have
                              not been demonstrated to be achievable.
                         b.   Any alternative basic equipment, fuel,
                              process, emission control device or
                              technique, singly or in combination,
                              determined to be technologically feasible and
                              cost-effective by the Air Pollution Control
                              Officer.
                         c.   For replacement equipment only, the emission
                              limitation that is based on the maximum
                              degree of reduction achievable, taking into
                              account environmental, energy, and economic
                              impacts by each class or category of source.

                    207.2     In making a BACT determination for
                              nonattainment pollutant the Air Pollution
                              Control Officer may consider the overall
                              effect on other nonattainment pollutants.  In
                              some cases the lowest emission rates may be
                              required for one or more nonattainment
                              pollutants at the cost of not achieving the
                              lowest emission rate for other nonattainment
                              pollutants.  The Air Pollution Control
                              Officer shall discuss these considerations in
                              the Preliminary Decision prepared pursuant to
                              Section 403.

                    207.3     Under no circumstances shall BACT be
                              determined to be less stringent than the
                              emission control required by an applicable
                              provision of district, state or federal laws
                              or regulations unless the applicant
                              demonstrates to the satisfaction of the Air
                              Pollution Control Officer that such
                              limitations are not achievable.

               208  CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) - The
                    California Environmental Quality Act, Public Resources
                    Code, Section 21000, et seq.

               209  CARGO CARRIERS - Cargo carriers are trains dedicated to
                    a specific source.

               210  COMMENCE - As applied to construction, means that the
                    owner or operator has all necessary permits or
                    approvals required under State and Federal air quality
                    control laws, District Rules and Regulations, and those
                    air quality control laws and regulations which are part
                    of the California State Implementation Plan, and has:

                    210.1     Begun, or caused to begin, a continuous
                              program of on-site construction of the
                              source, to be completed in a reasonable time,
                              or;

                    210.2     Entered into binding agreements or
                              contractual obligations which cannot be
                              cancelled or modified without substantial
                              loss to the owner or operator, to undertake a
                              program of actual construction of the source
                              to be completed within a reasonable time.

               211  COMPLETE APPLICATION - Completeness of an application
                    for an authority to construct a new or modified
                    emission unit shall be evaluated on the basis of a list
                    of required information which has been adopted by the
                    District pursuant to Article 3, Sections 65940 through
                    65944 of Chapter 4.5 of Division 1 of Title 7 of the
                    California Government Code as they exist on the date on
                    which the application is received and on payment of the
                    appropriate fee pursuant to Rule 601, PERMIT FEES.
               212  CONSTRUCTION - Means any physical change or change in
                    the method of operation (including fabrication,
                    erection, installation, demolition, or modification of
                    an emissions unit) which would result in a change in
                    actual emissions.

               213  CONTIGUOUS PROPERTY - Two or more parcels of land with
                    a common boundary or separated solely by a public
                    roadway or other public right-of-way.

               214  COST-EFFECTIVE - A cost per unit of emissions reduction
                    which is lower than or equivalent to the maximum unit
                    costs of the same emission reduction through the use of
                    Best Available Control Technology, calculated in
                    current year dollars, in accordance with methodology
                    and criteria specified in guidelines developed by the
                    District.

               215  ELECTRICAL POWER PLANT - An electrical generation
                    facility that regularly generates electricity so the
                    local electric utility can provide its daily energy
                    requirements.  Emergency electrical generating
                    equipment are not considered electrical power plants.

               216  EMISSION DECREASE - Any modification which would result
                    in an emission decrease of actual emissions.  The
                    emission decrease shall be calculated by subtracting
                    the proposed emissions from the historic actual
                    emissions.

               217  EMISSIONS LIMITATION - One or a combination of permit
                    conditions specific to an emissions unit which
                    restricts its maximum emissions, at or below the
                    emissions associated with the maximum design capacity.
                    An emissions limitation shall be:

                    217.1     Contained in the latest authority to
                              construct and contained in or enforceable by
                              the latest permit to operate for the emission
                              unit, and;

                    217.2     Enforceable on a daily basis or quarterly
                              basis pursuant to Section 407.2, and;

                    217.3     Established pursuant to a permitting action
                              occurring after December 31, 1976.
                    Emission limitations should be stated in a manner
                    consistent with testing procedures.  Emission
                    limitations may be expressed as enforceable design,
                    operational, or equipment standard pursuant to Section
                    407.3.

               218  EMISSIONS UNIT - An identifiable operation or piece of
                    process equipment such as an article, machine, or other
                    contrivance which controls, emits, may emit, or results
                    in the emissions of any affected air pollutant,
                    regulated air pollutant or Hazardous Air Pollutant
                    (HAP), directly or as fugitive emissions.  An emissions
                    unit shall not include the open burning of agricultural
                    biomass.

               219  FUGITIVE EMISSIONS - Those emissions which could not
                    reasonably pass through a stack, chimney, vent, or
                    other functionally equivalent opening.  Fugitive
                    hazardous air pollutant emissions shall be considered
                    when determining whether a source is a major stationary
                    source pursuant to Title V of the Federal Clean Air Act
                    as amended in 1990 and Rule 507, FEDERAL OPERATING
                    PERMIT PROGRAM.  The fugitive emissions of a source
                    shall not be considered in determining whether it is a
                    major stationary source pursuant to Title V, unless the
                    source belongs to one of the following categories of
                    stationary sources listed in 40 CFR 70.2,
                    "Definitions", "Major Source" (2).

               220  HALOGENATED HYDROCARBONS -  For the purposes of this
                    rule, halogenated hydrocarbons are  the following:
                    220.1          1,1,1-trichloroethane
                    220.2          methylene chloride
                    220.3          2,2-dichloro-1,1,1-trifluoroethane
                                   (HCFC-123)
                    220.4          2-chloro-1,1,1,2-tetrafluoroethane
                                   (HCFC-124)
                    220.5          trichlorofluoromethane (CFC-11)
                    220.6          dichlorodifluoromethane (CFC-12)
                    220.7          1,1,1-trichloro-2,2,2-trifluoroethane
                                   (CFC-113)
                    220.8          1-chloro-1,1-difluoro-2-chloro-2,2-
                                   difluoroethane (CFC-114)
                    220.9          chloropentafluoroethane (CFC-115)
                    220.10    pentafluoroethane (HFC-125)
                    220.11    1,1,2,2-tetrafluoroethane (HFC-134)
                    220.12    tetrafluoroethane (HFC-134a)
                    220.13    1,1-dichloro-1-fluoroethane (HCFC-141b)
                    220.14    1-chloro-1,1-difluoroethane (HCFC-142b)
                    220.15    1,1,1-trifluoroethane (HFC-143a)
                    220.16    chlorodifluoromethane (HCFC-22)
                    220.17    trifluoromethane (HFC-23)
                    220.18    1,1-difluoroethane (HFC-152a)
                    220.19    The following four classes of perfluorocarbon
                              compounds:
                              a.   Cyclic, branched, or linear, completely
                                   fluorinated alkanes.
                              b.   Cyclic, branched, or linear, completely
                                   fluorinated ethers, with no
                                   unsaturations.
                              c.   Cyclic, branched, or linear, completely
                                   fluorinated tertiary amines with no
                                   unsaturations.
                              d.   Sulfur-containing perfluorocarbons with
                                   no unsaturations and with sulfur bonds
                                   only to carbon and fluorine.
                    Perfluorocarbon compounds will be assumed to be absent
                    from a product or process unless a manufacturer or
                    facility operator identifies the specific individual
                    compounds (from the broad classes of perfluorocarbon
                    compounds) and the amounts present in the product or
                    process and provides a validated test method which can
                    be used to quantify the specific compounds.

               221  HAZARDOUS AIR POLLUTANT (HAP) - Any air pollutant
                    listed pursuant to Section 112(b) of the Federal Clean
                    Air Act as amended in 1990 (42 U.S.C. Section 7401 et
                    seq.).

               222  HISTORIC ACTUAL EMISSIONS -
                    222.1     For applications for emissions reductions
                              deemed complete after  September 21, 1993,
                              "historic actual emissions" are the actual
                              emissions for the existing emissions unit
                              averaged over the consecutive two year period
                              immediately preceding the date of application
                              for emission reduction credits.  If the last
                              two years are unrepresentative of normal
                              source operations as determined by the Air
                              Pollution Control Officer, then any two
                              consecutive years of the last five years that
                              represent normal source operation may be
                              used.

                    222.2     For applications for emissions reductions
                              deemed complete prior to September 21, 1993,
                              "historic actual emissions" are either as
                              calculated in Subsection 222.1, above, or, at
                              the option of the applicant and with the
                              approval of the Air Pollution Control
                              Officer, are the actual emissions for the
                              existing emissions unit averaged over the
                              three year period immediately preceding the
                              date of application for emission reduction
                              credits.

                    222.3     If, at any time during the two or three year
                              period, actual emissions exceeded allowed or
                              permitted emission levels, then actual
                              emissions shall be reduced to reflect
                              emission levels that would have occurred if
                              the unit were in compliance with all
                              applicable limitations and rules.
                    222.4     Where an emissions unit has been in operation
                              for less than two years, a shorter averaging
                              period of at least one year may be used,
                              provided that the averaging period is
                              representative of the full operational
                              history of the emissions unit.  If less than
                              one year has passed since the date of
                              issuance of the permit to operate then the
                              historic actual emissions shall be zero.

               223  HISTORIC POTENTIAL EMISSIONS - Emissions based on the
                    potential to emit of the emissions unit prior to
                    modification.  In determining the potential to emit,
                    daily emissions limitations shall be treated as part of
                    an emissions unit's design only if the limitations are
                    representative of normal operations, or if the facility
                    has provided offsets from previous permitting actions.
                    If there are no enforceable limiting conditions, an
                    emissions unit's potential to emit shall be limited to
                    the unit's historical actual emissions.  For a new
                    emissions unit historic potential emissions are equal
                    to zero.  For the purposes of the above determination,
                    "normal operations" is defined as the usual or typical
                    daily operating 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.

               224  LAKE TAHOE AIR BASIN - Established pursuant to Section
                    39606 of the Health & Safety Code of the State of
                    California and as described in Title 17, California
                    Code of Regulations, Section 60113 (b), the basin
                    includes that portion of Placer County within the
                    drainage area naturally tributary to Lake Tahoe
                    including said Lake, plus that area in the vicinity of
                    the head of the Truckee River described as follows:
                    commencing at the point common to the aforementioned
                    drainage area crestline and the line common to
                    Townships 15 North and 16 North, Mount Diablo Base and
                    Meridian (M.D.B. & M.), and following that line in a
                    westerly direction to the northwest corner of Section
                    3, Township 15 North, Range 16 East, (M.D.B. & M.),
                    thence south along the west line of Sections 3 and 10,
                    Township 15 North, Range 16 East, M.D.B. & M., to the
                    intersection with the drainage crestline, thence
                    following the said drainage area boundary in a
                    southwesterly,then northeasterly direction to and along
                    the Lake Tahoe Dam, thence following the said drainage
                    area crestline in a northeasterly, then northwesterly
                    direction to the point of beginning. This Air Basin is
                    delineated on an official map on file at the California
                    Air Resources Board Headquarters Office.

               225  MAJOR STATIONARY SOURCE - A stationary source which
                    emits or has the potential to emit: 50 tons per year
                    (tpy) or more of nitrogen oxides, 50 tons per year or
                    more of reactive organic compounds, 100 tons per year
                    or more of carbon monoxide, 100 tons per year or more
                    of PM10, 100 tons per year of sulfur oxides, 100 tons
                    per year of any regulated pollutant or levels specified
                    by the U.S. Environmental Protection Agency pursuant to
                    the Federal Clean Air Act of 1990, Section 112(a)(1).
                    In addition, any physical change occurring at a
                    stationary source not otherwise qualifying as a major
                    stationary source, which would constitute a major
                    stationary source by itself makes the source a major
                    stationary source.  For the purposes of Rule 507,
                    FEDERAL OPERATING PERMIT PROGRAM, a major stationary
                    source also includes any source which emits or has a
                    potential to emit 10 tpy of one HAP or 25 tpy of two or
                    more Hazardous Air Pollutants (HAPs), as listed
                    pursuant to Section 112(b) of the Federal Clean Air
                    Act, or any lesser quantity threshold promulgated by
                    the US Environmental Protection Agency.

               226  MAJOR MODIFICATION - Modification to a major stationary
                    source which results in an increase in the potential to
                    emit greater than: 25 tons per year of nitrogen oxides,
                    25 tons per year of reactive organic compounds, 100
                    tons per year of carbon monoxide, 40 tons per year of
                    sulfur oxides, or 15 tons per year of PM10 aggregated
                    with all other increases in potential to emit over the
                    period of five consecutive years before the
                    application for modification, and including the
                    calendar year of the most recent application.

               227  MODIFICATION - Any physical change, change in method of
                    operation (including change in fuel characteristics),
                    addition to, or any change in hours of operation, or
                    change in production rate of, which:

                    227.1     For an emissions unit:
                         a.   would necessitate a change in permit
                              conditions, or;
                         b.   is not specifically limited by a permit
                              condition, or;
                         c.   results in an increase, a decrease, or no
                              change in emissions which are not subject to
                              an emissions limitation.

                    227.2     For a stationary source: is a modification of
                              its emissions unit, or addition of any new
                              emissions unit.

                    227.3     The following shall not be considered a
                              modification:
                         a.   A change in ownership.
                         b.   Routine maintenance and repair.
                         c.   A reconstructed stationary source or
                              emissions unit which shall be treated as a
                              new stationary source or emissions unit, not
                              as a modification.
                         d.   The addition of a continuous emission
                              monitoring system.

               228  MOUNTAIN COUNTIES AIR BASIN - Established pursuant to
                    Section 39606 of the Health & Safety Code of the State
                    of California and as described in Title 17, California
                    Code of Regulations, Section 60111 (i), the Mountain
                    Counties Air Basin includes all of Placer County except
                    that portion included in the Lake Tahoe Air Basin,
                    defined by 17 CCR 60113(b), and that portion included
                    in the Sacramento Valley Air Basin, defined by 17 CCR
                    60106(k).

               229  NONATTAINMENT POLLUTANT -  Any pollutant as well as any
                    precursors of such pollutants which has been designated
                    "nonattainment" by the US Environmental Protection
                    Agency in the Federal Register, or which has been
                    designated nonattainment by the California Air
                    Resources Board pursuant to Section 39607 of the Health
                    and Safety Code.

               230  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).

               231  PORTABLE EQUIPMENT - Equipment which is periodically
                    relocated and is not operated more than a total of 180
                    days at any one location in the District within any
                    continuous 12 month period.

               232  POTENTIAL TO EMIT - The maximum daily physical and
                    operational design capacity to emit an air pollutant
                    during each calendar quarter.  Any limitation on the
                    physical or operational design capacity, including
                    emission control devices and restrictions on hours of
                    operation, or on the type, or amount of material
                    combusted, stored, or processed, may be considered as
                    part of the design only if the limitation, or the
                    effect it would have on emissions, is incorporated into
                    the Authority to Construct as an enforceable permit
                    condition as daily emissions limitations.  Fugitive
                    emissions associated with the emissions unit or
                    stationary source shall be included in the potential to
                    emit of the emissions unit or stationary source.

               233  PRECURSOR - A pollutant that, when emitted into the
                    atmosphere, may undergo either a chemical or physical
                    change which then produces another pollutant for which
                    an ambient air quality standard has been adopted, or
                    whose presence in the atmosphere will contribute to the
                    violation 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

                    Reactive Organic         a. Photochemical
                                                  oxidants (Ozone)
                    Compound                 b. Organic fraction of PM10
                    ------------------------      -------------------------
                                            
                    Nitrogen Oxides          a. Nitrogen dioxide
                                             b. Nitrate fraction of PM10
                                             c. Photochemical oxidants (Ozone)
                    ------------------------      -------------------------
                                               
                    Sulfur Oxides            a. Sulfur dioxide
                                             b. Sulfates
                                             c. The sulfate fraction of PM10
                  ------------------------      -------------------------
                                             
               234  PRIORITY RESERVE BANK -  A depository for preserving
                    emission reduction credits pursuant to Rule 505,
                    PRIORITY RESERVE.

               235  PROPOSED EMISSIONS - Emissions based on the potential
                    to emit for the new or modified emissions unit.

               236  QUARTERLY - Calendar quarters beginning in January,
                    April, July, and October.

               237  QUARTERLY EMISSIONS LIMITATION -  One or a combination
                    of permit conditions specific to an emissions unit
                    which restricts its maximum emissions, in pounds per
                    quarter, at or below the emissions associated with the
                    maximum design capacity.  A quarterly emissions
                    limitation must be:

                    237.1     Contained in the latest authority to
                              construct and contained in or enforceable by
                              the latest permit to operate for the emission
                              unit, and

                    237.2     Enforceable on a quarterly basis, and

                    237.3     Established pursuant to a permitting action
                              occurring after December 31, 1976.

               238  REACTIVE ORGANIC COMPOUND - Any compound containing
                    carbon except:  methane, carbon monoxide, carbon
                    dioxide, carbonic acid, metallic carbides or
                    carbonates, ammonium carbonates, and halogenated
                    hydrocarbons.

               239  RECONSTRUCTED SOURCE - Any stationary source or
                    emissions unit undergoing physical modification where
                    the fixed capital cost of the new components exceeds 50
                    percent of the fixed capital cost of a comparable
                    entirely new stationary source or emissions unit.
                    Fixed capital cost means that capital needed to provide
                    all the depreciable components.  A reconstructed source
                    shall be treated as a new stationary source or
                    emissions unit.

               240  REDUCED SULFUR COMPOUNDS - The sulfur compounds
                    hydrogen sulfide, carbon disulfide and carbonyl
                    sulfide.

               241  REGULATED AIR POLLUTANT - A "regulated air pollutant"
                    is any pollutant:  1) which is emitted into or
                    otherwise enters the ambient air, and 2) for which the
                    State or the US Environmental Protection Agency has
                    adopted an emission limit, standard, or other
                    requirement.  Regulated air pollutants include:

                    241.1     Oxides of nitrogen and volatile organic
                              compounds;
                    241.2     Any pollutant for which a national ambient
                              air quality standard has been promulgated
                              pursuant to Section 109 of the Federal Clean
                              Air Act;

                    241.3     Any pollutant subject to a new source
                              performance standard promulgated pursuant to
                              Section 111 of the Federal Clean Air Act;

                    241.4     Any ozone-depleting substance specified as a
                              Class I (chlorofluorocarbons) or Class II
                              (hydrofluorocarbons) substance pursuant to
                              Title VI of the Federal Clean Air Act; and

                    241.5     Any pollutant subject to a standard or
                              requirement promulgated pursuant to Section
                              112 of the Federal Clean Air Act, including:
                         a.   Any pollutant listed pursuant to Section
                              112(r) of the Federal Clean Air Act
                              (Prevention of Accidental Releases) shall be
                              considered a "regulated air pollutant" upon
                              promulgation of the list.
                         b.   Any HAP subject to a standard or other
                              requirement promulgated by the US
                              Environmental Protection Agency pursuant to
                              Section 112(d) or adopted by the District
                              pursuant to 112(g) and (j) of the Federal
                              Clean Air Act shall be considered a
                              "regulated air pollutant" for all sources or
                              categories of sources:  1) upon promulgation
                              of the standard or requirement, or 2) 18
                              months after the standard or requirement was
                              scheduled to be promulgated pursuant to
                              Section 112(e)(3) of the Federal Clean Air
                              Act.
                         c.   Any HAP subject to a District case-by-case
                              emissions limitation determination for a new
                              or modified source, prior to the U.S.
                              Environmental Protection Agency promulgation
                              or scheduled promulgation of an emissions
                              limitation shall be considered a "regulated
                              air pollutant" when the determination is made
                              pursuant to Section 112(g)(2) of the Federal
                              Clean Air Act.  In case-by-case emissions
                              limitation determinations, the HAP shall be
                              considered a "regulated air pollutant" only
                              for the individual source for which the
                              emissions limitation determination was made.

               242  REPLACEMENT EQUIPMENT -
                    242.1     Functionally Identical Replacement:  The
                              replacement of or modification of emission
                              units(s) where the replacement unit serves
                              the identical function as the unit(s) being
                              replaced, and the maximum rating and the
                              potential to emit any pollutant will not be
                              greater from the new or modified emissions
                              unit(s) than the replaced unit(s), when the
                              emissions unit(s) are operated at the same
                              permitted conditions.

                    242.2     Identical Replacement:  The total or partial
                              replacement of an emissions unit where the
                              replacement is the same as the original unit
                              in all respects except for serial number.
               243  SACRAMENTO VALLEY AIR BASIN - Established pursuant to
                    Section 39606 of the Health & Safety Code of the State
                    of California and as described in Title 17, California
                    Code of Regulations, Section 60106(k), the basin
                    includes that portion of Placer County which lies west
                    of Range 9 east, Mount Diablo Base and Meridian (M.D.B.
                    & M.).

               244  STATIONARY SOURCE (SOURCE OR FACILITY) - Any building,
                    structure, facility, or emissions unit which emits or
                    may emit any affected pollutant directly or as fugitive
                    emissions.

                    244.1     Building, structure, facility, or emissions
                              unit includes all pollutant emitting
                              activities which:
                         a.   belong to the same industrial grouping, and;
                         b.   are located on one property or on two or more
                              contiguous properties, and;
                         c.   are under the same or common ownership,
                              operation, or control or which are owned or
                              operated by entities which are under common
                              control.

                    244.2     Pollutant emitting activities shall be
                              considered as part of the same industrial
                              grouping if:
                         a.   they belong to the same two-digit standard
                              industrial classification code under the
                              system described in the 1987 Standard
                              Industrial Classification Manual, or;
                         b.   they are part of a common production process.
                              (Common production process includes
                              industrial processes, manufacturing processes
                              and any connected processes involving a
                              common material.)

                    244.3     The emissions within District boundaries of
                              cargo carriers associated with the stationary
                              source shall be considered emissions from the
                              stationary source to the extent that emission
                              reductions from cargo carriers are proposed
                              as offsets.

               245  TEMPORARY SOURCE - Temporary emission sources such as
                    pilot plants, and portable facilities which will be
                    terminated or located outside the District after less
                    than a cumulative total of 90 days of operation in any
                    12 continuous months, and the emissions resulting from
                    the construction phase of a new source.

               246  TOTAL REDUCED SULFUR COMPOUNDS - The sulfur compounds
                    hydrogen sulfide, methyl mercaptan, dimethyl sulfide
                    and dimethyl disulfide.
          300  STANDARDS

               301  BEST AVAILABLE CONTROL TECHNOLOGY:  An applicant shall
                    apply Best Available Control Technology to a new
                    emissions unit or modification of an existing emissions
                    unit, except cargo carriers, for each emissions change
                    of an affected pollutant, which would have an increase
                    in emissions, according to procedures specified in
                    Section 410, and the potential to emit of the new or
                    modified emissions unit which equals or exceeds the
                    levels specified in Section 301.1.  A condition which
                    reflects BACT in a manner consistent with testing
                    procedures, such as ppmv NOx, g/liter VOC, or lbs/hr
                    shall be contained in the latest authority to construct
                    and permit to operate.

                    301.1     Pollutant                     lb/day
                         Reactive organic compounds         10
                         Nitrogen oxides                    10
                         Sulfur oxides                      80

                         Pollutant                          lb/day
                         PM10                               80
                         Carbon monoxide                    550
                         Lead                                 3.3
                         Vinyl chloride                       5.5
                         Sulfuric acid mist                  38
                         Hydrogen sulfide                    55
                         Total reduced sulfur compounds      55
                         Reduced sulfur compounds            55

               302  OFFSET REQUIREMENTS, GENERAL:
                    302.1     An applicant shall provide offsets for the
                              affected pollutant, except as provided in
                              Section 304, obtained pursuant to Rule 504,
                              EMISSION REDUCTION CREDITS, or Rule 505,
                              PRIORITY RESERVE, for new and modified
                              sources where the cumulative emission changes
                              of reactive organic compounds, nitrogen
                              oxides, sulfur oxides, PM10 or carbon
                              monoxide calculated pursuant to Section 411
                              or 412 exceed the level specified in Section
                              302.1.a, below.  Sufficient offsets shall be
                              provided, from the same calendar quarter as
                              the emissions, to offset positive emissions
                              changes of reactive organic compounds,
                              nitrogen oxides and carbon monoxide (except
                              as provided in Section 302.2) calculated
                              according to procedures specified in Section
                              414.  Sufficient offsets shall be provided,
                              from the same calendar quarter as the
                              emissions, to offset positive emissions
                              changes of sulfur oxides and PM10 calculated
                              according to procedures specified in Section
                              415.  Facilities shall be required to curtail
                              operations if sufficient offsets are not
                              obtained as required by permit conditions.
                              Except as provided for in Section 304,
                              emission offsets used to mitigate emission
                              increases must be of the same pollutant type.
                              The facility is ultimately responsible for
                              ensuring offsets.
                         a.   Pollutant                pounds per quarter
                              Reactive organic compounds    7,500
                              Nitrogen oxides               7,500
                              Sulfur oxides                 12,500
                              PM10                          7,500
                              Carbon monoxide               7,500

                    302.2     Offsets for increases in carbon monoxide
                              shall not be required if the applicant, using
                              an air quality modeling analysis prepared
                              pursuant to Section 402, demonstrates to the
                              satisfaction of the Air Pollution Control
                              Officer that the increase in ambient
                              concentration does not exceed 500 micrograms
                              per cubic meter, 8 hour average, at or beyond
                              the property line of the stationary source.

                    302.3     In no case shall halogenated hydrocarbons be
                              used as offsets for reactive organic
                              compounds, nor shall exempt compounds or
                              other compounds excluded from the definition
                              of reactive organic compounds be used as
                              offsets for reactive organic compounds.

                    302.4     Portable equipment shall be evaluated for
                              offsets at the initial location only.  In the
                              event such portable equipment is shutdown,
                              emission reduction credits shall be granted
                              based on the emissions calculated at the
                              initially permitted location.  If operated a
                              cumulative total of less than 90 days within
                              a continuous 12 month period, at all
                              locations within the District and in any air
                              basin of which the District is a part, the
                              portable equipment is considered a temporary
                              source.
                    302.5     Except as allowed by Section 412.1 for
                              sources which have provided full offsets of
                              total suspended particulate (TSP), the PM10
                              emissions from an existing stationary source
                              shall be recalculated from the TSP emission
                              increases and decreases which have occurred
                              since December 31, 1976, using PM10 emission
                              factors.  When PM10 emission factors do not
                              exist assume 50% of the TSP is PM10.

                    302.6     Offsets can only come from regions with the
                              same air quality designations or worse
                              designations than that of the emissions unit
                              or stationary source requiring the offsets.

               303  LOCATION OF OFFSETS AND OFFSET RATIOS:
                    303.1     Except as provided in Subsections 303.2 and
                              303.3, and Section 304, an applicant shall
                              provide offsets for emissions from a proposed
                              stationary source subject to the requirements
                              of Section 302 according to the following
                              ratios and requirements as a minimum:
                                                      
                                                 Offset Ratio
                                          Non-Attainment
                                                             Other Affected
                  Location of Offset        Pollutants         Pollutants

                     Same Source              1.0 to 1.0          1.0
                                                                  to
                                                                  1.0

                     Within 15-Mile Radius         1.2 to 1.0     1.1
                                                                  to
                                                                  1.0
                     and within the District

                     Within 15-Mile Radius         1.3 to 1.0     1.2
                                                                  to
                                                                  1.0
                     outside the District, but
                     within the same air basin

                     Greater than 15-Mile          2.0 to 1.0     1.2
                                                                  to
                                                                  1.0
                      but within 50-Mile Radius
                      and within District

                     Greater than 15-Mile          2.1 to 1.0     1.3
                                                                  to
                                                                  1.0
                     but within 50-Mile Radius and
                         outside the District, but
                         within the same air basin

                      More than 50-Mile        Greater than        Greater
                                                                    than
                      Radius and within the     2.1 to 1.0     1.3 to 1.0
                         same air basin

                    303.2     Offsets obtained from locations not
                              satisfying the location criteria of
                              Subsection 303.1, other than offsets obtained
                              pursuant to Rule 505, PRIORITY RESERVE, shall
                              be subject to an offset ratio of at least 1.2
                              to 1.0.  An air quality analysis pursuant to
                              Section 306 shall be performed.  The Air
                              Pollution Control Officer may impose, based
                              on the air quality analysis, a higher offset
                              ratio such that the new or modified
                              stationary source will not prevent or
                              interfere with the attainment or maintenance
                              of any ambient air quality standard.

                    303.3     Applicants providing offsets obtained
                              pursuant to Rule 505, PRIORITY RESERVE, shall
                              be subject to an offset ratio of 1.0 to 1.0
                              for all pollutants at all distances except
                              for major stationary sources.  Major
                              stationary sources providing offsets obtained
                              pursuant to Rule 505, PRIORITY RESERVE, shall
                              be subject to an offset ratio of 1.2 to 1.0
                              for all pollutants at all distances.

                    303.4     Offsets which are obtained pursuant to
                              Sections 302 and 303 and pursuant to
                              permitting actions in a district other than
                              that in which the proposed source is located
                              may be used only if the Air Pollution Control
                              Officer has reviewed the permit conditions
                              issued by the other district in which the
                              proposed offsets are obtained and certifies
                              that the impact of using such offsets meet
                              the requirements of the District Rules and
                              Regulations.   Emission reduction credits
                              used to offset project emissions in another
                              district shall be implemented through an
                              interdistrict agreement to ensure their
                              enforceability and permanence pursuant to
                              California Health and Safety Code Section
                              40709.6.

               304  INTERPOLLUTANT OFFSETS:  The Air Pollution Control
                    Officer may approve interpollutant offsets for
                    precursor pollutants on a case by case basis, provided
                    that the applicant demonstrates through the use of an
                    air quality model that the emission increases from the
                    new or modified source will not cause or contribute to
                    a violation of an ambient air quality standard.  In
                    such cases, the Air Pollution Control Officer shall
                    impose, based on an air quality analysis, offset ratios
                    greater than the requirements of Section 303.
                    Interpollutant offsets between PM10 and PM10 precursors
                    may be allowed only if PM10 precursors contribute
                    significantly to the PM10 levels that exceed the PM10
                    ambient standards.  PM10 emissions shall not be allowed
                    to offset nitrogen oxides or reactive organic compound
                    emissions in ozone nonattainment areas, nor be allowed
                    to offset sulfur oxide emissions in sulfate
                    nonattainment areas.

               305  EMISSION REDUCTIONS, SHUTDOWNS AND CURTAILMENTS:
                    Actual emission reductions from a shutdown or
                    curtailment of permitted emission units may be credited
                    for the purposes of banking and offsets pursuant to
                    Rule 504, EMISSION REDUCTION CREDITS, provided:

                    305.1     Application is made for emission reduction
                              credits.

                    305.2     The crediting and disbursement of emission
                              reductions from source shutdowns and
                              curtailments shall be in accordance with the
                              most current US Environmental Protection
                              Agency emissions trading policy and
                              applicable federal regulations.

                    305.3     The emissions from the emissions unit to be
                              shutdown or curtailed are included in the
                              District's 1987 emission inventory for State
                              requirements, and the 1990 base-year emission
                              inventory for federal requirements applicable
                              to major stationary sources and major
                              modifications.

                    305.4     Emissions decreases are ensured and
                              documented by enforceable emission
                              limitations contained in the permit to
                              operate, or emissions decreases are ensured
                              by the permanent surrender or cancellation of
                              the permit to operate.

               306  AMBIENT AIR QUALITY STANDARDS:  In no case shall
                    emissions from the new or modified stationary source,
                    prevent or interfere with the attainment or maintenance
                    of any applicable ambient air quality standard, except
                    as provided in Section 302.2.  The Air Pollution
                    Control Officer may require the use of an air quality
                    model to estimate the effects of a new or modified
                    stationary source.  The analysis shall estimate the
                    effects of a new or modified stationary source, and
                    verify that the new or modified stationary source will
                    not prevent or interfere with the attainment or
                    maintenance of any ambient air quality standard.  In
                    making this determination the Air Pollution Control
                    Officer shall take into account the mitigation of
                    emissions through offsets pursuant to this rule and the
                    impacts of transported pollutants on downwind pollutant
                    concentrations.  The Air Pollution Control Officer may
                    impose, based on an air quality analysis, offset ratios
                    greater than the requirements of Section 303.

               307  DENIAL, FAILURE TO MEET STANDARDS:  The Air Pollution
                    Control Officer shall deny any authority to construct
                    or permit to operate if the Air Pollution Control
                    Officer finds that the subject of the application would
                    not comply with the standards set forth in District,
                    state, or federal rules or regulations.  Stationary
                    sources and emission units are required to curtail
                    operations corresponding to the extent that required
                    offsets are not obtained, or are not permanently
                    maintainable.  The owner or operator of the stationary
                    source or emissions unit requiring offsets has the
                    ultimate responsibility for ensuring offsets are real,
                    surplus, permanent, and quantifiable.

               308  CEQA APPLICABILITY:  All proposed new and modified
                    sources for which an authority to construct must be
                    obtained from the District shall be reviewed in
                    accordance with the requirements of CEQA, including,
                    but not limited to, alternative siting and benefits
                    analysis.

               309  DENIAL, FAILURE TO MEET CEQA:  The Air Pollution
                    Control Officer shall deny any authority to construct
                    or permit to operate if the Air Pollution Control
                    Officer finds that the subject of the application would
                    not comply with the standards set forth in CEQA.

          400  ADMINISTRATIVE REQUIREMENTS

               The following administrative requirements in Sections
               401-415 shall apply to any activities regulated by this
               rule, except for the review of power plants over 50
               megawatts.  Power plants over 50 megawatts shall be subject
               to the review requirements of Section 416, and applicable
               requirements of Rule 507, FEDERAL OPERATING PERMIT PROGRAM.
               Stationary sources which are subject to Rule 507, FEDERAL
               OPERATING PERMIT PROGRAM, shall be permitted in accordance
               with the procedures specified in that rule, in addition to
               the requirements of this Section which are consistent with
               Rule 507.

               401  COMPLETE APPLICATION:  With the exception of
                    applications for initial permit to operate, permit
                    renewal, or a significant modification for stationary
                    sources subject to the requirements of Title V of the
                    Federal Clean Air as amended in 1990 and Rule 507,
                    FEDERAL OPERATING PERMITS, the Air Pollution Control
                    Officer shall determine whether the application is
                    complete no later than 30 days after receipt of the
                    application, or after such longer time period that the
                    applicant and the Air Pollution Control Officer have
                    agreed in writing.  If the Air Pollution Control
                    Officer determines that the application is not
                    complete, the applicant shall be notified in writing of
                    the decision specifying the information required.  Upon
                    receipt of any re-submittal of the application, a new
                    30-day period to determine completeness shall begin.
                    Completeness of an application or a re-submitted
                    application shall be evaluated on the basis of the
                    information requirements set forth in District
                    regulations (adopted pursuant to Article 3, 65940
                    through 65944 of Chapter 4.5 of Division l of Title 7
                    of the California Government Code) as they exist on the
                    date on which the application or re-submitted
                    application was received, on the CEQA-related
                    information which satisfies the requirements of the
                    District's CEQA Guidelines, and the applicable
                    requirements of Rule 507, FEDERAL OPERATING PERMIT
                    PROGRAM.  The Air Pollution Control Officer may, during
                    the processing of the application, request an applicant
                    to clarify, amplify, correct, or otherwise supplement
                    the information submitted in the application.
               402  AIR QUALITY MODELS:  All air quality models used for
                    the purposes of this rule shall be consistent with the
                    requirements provided in the most recent edition of US
                    Environmental Protection Agency "Guidelines on Air
                    Quality Models, OAQPS 1.2-080" unless the Air Pollution
                    Control Officer finds that such model is inappropriate
                    for use.  After making such finding the Air Pollution
                    Control Officer may designate an alternate model only
                    after allowing for public comment, and only with
                    concurrence of the US Environmental Protection Agency.
                    Credit shall not be given for stacks higher than that
                    dictated by good engineering practice.  All modeling
                    costs associated with the siting of a stationary source
                    shall be borne by the applicant.

               403  PRELIMINARY DECISION:  Except as provided in Section
                    111, following acceptance of an application as
                    complete, the Air Pollution Control Officer shall
                    perform the evaluations required to determine
                    compliance with all applicable district rules and
                    regulations and make a preliminary written decision as
                    to whether a permit to construct should be approved,
                    conditionally approved, or denied.  When the District
                    is the CEQA Lead Agency for a project, the Air
                    Pollution Control Officer shall not issue a preliminary
                    decision until the draft Environmental Impact Report or
                    Negative Declaration is available for public review.
                    The decision shall be supported by a succinct written
                    analysis.

                    403.1     The Air Pollution Control Officer shall
                              transmit to the California Air Resources
                              Board and the US Environmental Protection
                              Agency its preliminary written decision and
                              analysis for sources subject to Sections 301,
                              302, 303, and 306 no later than the date of
                              publication as required in Section 404.  For
                              initial permits to operate, renewal of
                              permits, significant and minor permit
                              modifications, and reopenings for cause of
                              sources subject to the requirements of Title
                              V of the Federal Clean Air Act as amended in
                              1990 (42 U.S.C. Section 7401 et seq.), and
                              pursuant to Rule 507, FEDERAL OPERATING
                              PERMIT PROGRAM, the proposed decision,
                              analysis, public notice, and draft permit if
                              applicable, shall be sent to the US
                              Environmental Protection Agency for a 45 day
                              review period.

               404  PUBLICATION AND PUBLIC COMMENT:  Except as provided in
                    Section 111, within ten calendar days following a
                    preliminary decision pursuant to Section 300,
                    Standards, of this rule, the Air Pollution Control
                    Officer shall publish in at least one newspaper of
                    general circulation in the District a notice stating
                    the preliminary decision of the Air Pollution Control
                    Officer, noting how the pertinent information can be
                    obtained, and inviting written public comment for a
                    30-day period following the date of publication.  For
                    initial permits to operate, renewal of permits,
                    significant permit modifications, and reopenings for
                    cause of sources subject to Rule 507, FEDERAL OPERATING
                    PERMIT PROGRAM, public notice shall be given pursuant
                    to the requirements of that rule.

               405  PUBLIC INSPECTION:  Except as provided in Section 111,
                    the Air Pollution Control Officer shall make available
                    for public inspection at the District's office the
                    information submitted by the applicant and the Air
                    Pollution Control Officer's analysis no later than the
                    date the notice of the preliminary decision is
                    published, pursuant to Section 404.  Information
                    submitted which contains trade secrets shall be handled
                    in accordance with Section 6254.7 of the California
                    Government Code and relevant sections of the California
                    Administrative Code.  Further, all such information
                    shall be transmitted no later than the date of
                    publication to the California Air Resources Board and
                    the US Environmental Protection Agency regional office,
                    and to any party which requests such information.  For
                    initial permits to operate, renewal of permits,
                    significant permit modifications, and reopenings for
                    cause of sources subject to Rule 507, FEDERAL OPERATING
                    PERMIT PROGRAM, written notice, the proposed permit,
                    and upon request, the District's analysis, shall be
                    provided to interested parties or agencies pursuant to
                    the requirements of that rule.

               406  AUTHORITY TO CONSTRUCT, FINAL ACTION:
                    406.1     Within 180 days after acceptance of an
                              application as complete, the Air Pollution
                              Control Officer shall take final action on
                              the application after considering all written
                              comments.

                    406.2     Notwithstanding this 180-day limit, the Air
                              Pollution Control Officer shall not take
                              final action for any project for which an
                              Environmental Impact Report (EIR) or a
                              Negative Declaration is being prepared until
                              a final EIR for that project has been
                              certified or a Negative Declaration for that
                              project has been approved, and the Air
                              Pollution Control Officer has considered the
                              information in that final EIR or Negative
                              Declaration.  The Air Pollution Control
                              Officer shall take final action on the
                              application within whichever of the following
                              periods of time is longer:
                         a.   Within 180 days after the certification of
                              the final EIR or approval of the Negative
                              Declaration, or

                         b.   Within 180 days of the date on which the
                              application was determined complete by the
                              Air Pollution Control Officer.

                    406.3     Except as provided in Section 111, the Air
                              Pollution Control Officer shall provide
                              written notice of the final action to the
                              applicant, the US Environmental Protection
                              Agency, and the California Air Resources
                              Board, and shall publish such notice in a
                              newspaper of general circulation and shall
                              make the notice and all supporting documents
                              available for public inspection at the
                              District's office.

               407  REQUIREMENTS, AUTHORITY TO CONSTRUCT AND PERMIT TO
                    OPERATE:
                    407.1     General Conditions:  As a condition for the
                              issuance of an authority to construct and a
                              permit to operate, the Air Pollution Control
                              Officer shall require that the emissions unit
                              and stationary source, and any emissions
                              units which provide offsets, be operated in
                              the manner stated in the application in
                              making the analysis required to determine
                              compliance with this rule, and as conditioned
                              in the authority to construct.

                    407.2     Emissions Limitations:  All of the following
                              emissions limitations shall be included on
                              the authority to construct and permit to
                              operate, if applicable.
                         a.   The authority to construct and permit to
                              operate shall include emission limitations
                              which reflect Best Available Control
                              Technology.  Such condition(s) shall be
                              expressed in a manner consistent with testing
                              procedures, such as ppmv NOx, g/liter VOC, or
                              lbs/hr.
                         b.   A quarterly emissions limitation for each
                              affected pollutant for which offsets are
                              being provided pursuant to Section 302.1
                              shall be contained in the authority to
                              construct and permit to operate.
                         c.   A daily emission limitation shall be
                              contained in the authority to construct and
                              permit to operate for all affected pollutants
                              for which offsets are not being provided
                              pursuant to Section 302.1, or when required
                              to be consistent with ambient air quality
                              standards.
                         d.   Electrical power plants shall also contain a
                              quarterly emissions limitation for operation
                              of increased power plant operation needed to
                              compensate for reduced operation at other
                              power plant(s) within the District due to
                              emergency breakdown, pursuant to Rule 404,
                              UPSET CONDITIONS, BREAKDOWN, OR SCHEDULED
                              MAINTENANCE, and regularly scheduled
                              maintenance.
                         e.   Permits to operate for sources subject to the
                              requirements of Rule 507, FEDERAL OPERATING
                              PERMIT PROGRAM, shall contain all applicable
                              federal requirements in addition to the
                              applicable limitations of (a), (b), (c), and
                              (d), above.

                    407.3     Design, Operational, or Equipment Standards:
                              If the Air Pollution Control Officer
                              determines that technological or economic
                              limitations on the application of measurement
                              methodology to a particular class of sources
                              would make the imposition of a numerical
                              emission standard infeasible, the Air
                              Pollution Control Officer may instead
                              prescribe a design, operational, or equipment
                              standard.  In such cases, the District shall
                              make its best estimate as to the emission
                              rate that will be achieved and shall specify
                              that rate in required submissions to the US
                              Environmental Protection Agency.  Any permits
                              issued without an enforceable numerical
                              emission standard must contain enforceable
                              conditions which assure that the design
                              characteristics or equipment will be properly
                              maintained, or that the operational
                              conditions will be properly performed, so as
                              to continuously achieve the assumed degree of
                              control.

                    407.4     Offsets:
                         a.   Except as provided in Section 407.4.b, below,
                              the operation of any emissions unit or
                              stationary source which provides offsets
                              shall be subject to enforceable permit
                              conditions, containing specific emissions and
                              operational limitations, to ensure that the
                              emission reductions shall be provided in
                              accordance with the provisions of this rule
                              and shall continue for the reasonably
                              expected life of the proposed emissions unit
                              or stationary source.
                         b.   Where the source of offsets is not required
                              to obtain an authority to construct or a
                              permit to operate pursuant to Rule 501,
                              GENERAL PERMIT REQUIREMENTS, and Rule 504,
                              EMISSION REDUCTION CREDITS, a written
                              contract or a functional equivalent as
                              determined by the Air Pollution Control
                              Officer shall be required between the
                              applicant and the owner or operator of such
                              source, which contract, by its terms, shall
                              be enforceable by the Air Pollution Control
                              Officer.  For sources subject to federal NSR
                              requirements, in the absence of federally
                              enforceable conditions, the execution of a
                              source specific SIP revision is required.
                         c.   An internal emission offset will be
                              considered enforceable if it is made a State
                              Implementation Plan (SIP) requirement by
                              inclusion as a condition of the new source
                              permit and the permit is forwarded to the US
                              Environmental Protection Agency.
                         d.   Except as provided in Section 407.4.b,
                              external offsets must be made enforceable
                              either by revision of an offsetting source's
                              authority to construct and permit to operate
                              or by submittal of a SIP revision to US
                              Environmental Protection Agency prior to the
                              operation of the emissions unit . The revised
                              permit shall be forwarded to the US
                              Environmental Protection Agency.  The SIP
                              revision submittal shall be submitted to the
                              California Air Resources Board to be
                              forwarded to the US Environmental Protection
                              Agency as part of the State Implementation
                              Plan.
                         e.   A violation of the emission limitation
                              provisions of any contract pursuant to
                              407.4.b, above, shall be a violation of this
                              rule by the applicant.
                         f.   The operation of any emissions unit or
                              stationary source which uses offsets provided
                              by another emissions unit or stationary
                              source shall be subject to enforceable permit
                              conditions, containing specific emissions and
                              operational limits, to ensure that the
                              emission reductions are used in accordance
                              with the provisions of District rules and
                              shall continue for the reasonably expected
                              life of the proposed emissions unit or
                              stationary source.
                         g.   For sources subject to federal requirements,
                              the permanence of emissions reductions may be
                              demonstrated by federally enforceable changes
                              in source permits or applicable District
                              regulations to reflect a reduced level of
                              allowable emissions.

               408  ISSUANCE, PERMIT TO OPERATE:  The Air Pollution Control
                    Officer shall issue a permit to operate an emissions
                    unit subject to the requirements of this rule if it is
                    determined that any offsets required as a condition of
                    an authority to construct or amendment to a permit to
                    operate will commence not later than the initial
                    operation of the new or modified source, and that the
                    offsets shall be maintained throughout the operation of
                    the new or modified source which is the beneficiary of
                    the offsets.  Further, the Air Pollution Control
                    Officer shall determine that all conditions specified
                    in the authority to construct have been complied with
                    or will be complied with by the dates specified on the
                    authority to construct.  Such applicable conditions
                    shall be contained in the permit to operate.  Where a
                    new or modified stationary source is, in whole or in
                    part, a replacement for an existing stationary source
                    on the same property, the Air Pollution Control Officer
                    may allow a maximum of 90 days as a startup period for
                    simultaneous operation of the existing stationary
                    source and the new source or replacement.  For initial
                    permits to operate, renewal of permits, significant
                    permit modifications, and reopenings for cause of
                    sources subject to Rule 507, FEDERAL OPERATING PERMIT
                    PROGRAM, permit issuance shall comply with the
                    requirements and procedures of that rule.

               409  REGULATIONS IN FORCE GOVERN:  An authority to construct
                    shall be granted or denied based on Best Available
                    Control Technology and offset requirements of Sections
                    301 and 302 in force on the date the application is
                    deemed complete as defined in Section 211.  In
                    addition, the Air Pollution Control Officer shall deny
                    an authority to construct for any new stationary source
                    or modification, or any portion thereof, unless:

                    409.1     Compliance with District Rules:  The new
                              source or modification, or applicable portion
                              thereof, complies with the provisions of this
                              rule and all other applicable district rules
                              and regulations; and

                    409.2     Certification of Compliance:  The owner or
                              operator of the proposed new or modified
                              source has certified that all existing 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 which are subject
                              to emission limitations are in compliance, or
                              on an expeditious schedule for compliance,
                              with all applicable emission limitations and
                              standards.

               410  CALCULATION OF EMISSIONS - BACT:  The emissions change
                    for a new or modified emissions unit shall be
                    calculated by subtracting historic actual emissions
                    from proposed emissions.  Calculations shall be
                    performed separately for each emissions unit for each
                    calendar quarter.

               411  CALCULATION OF EMISSIONS - OFFSETS TRIGGER FOR ROC, NOX
                    AND CO: The potential to emit for each calendar quarter
                    for a stationary source shall be the sum of the
                    potential to emit, including fugitive emissions, for
                    all emissions units based on current permits to operate
                    and authorities to construct where permits to operate
                    have not been issued, the pending application and
                    banked emission reduction credits obtained after
                    September 21, 1993, from emissions units installed
                    before September 21, 1993, and after December 31, 1976.
               412  CALCULATION OF EMISSIONS - OFFSET TRIGGER FOR SOX AND
                    PM10:  Except as provided in Sections 412.1 and 412.2,
                    the cumulative emissions increases for each calendar
                    quarter for a stationary source shall be the sum of
                    emissions from Sections 412.3, 412.4, and 412.5 for
                    each calendar quarter, expressed in terms of pounds per
                    day.

                    412.1     An application for a modification, deemed
                              complete after September 21, 1993, to an
                              emissions unit or stationary source,
                              constructed or whose application is deemed
                              complete prior to September 21, 1993, and
                              which had provided full offsets for total
                              suspended particulate matter emissions
                              occurring after December 31, 1976 but before
                              September 21, 1993, those total suspended
                              particulate matter emissions shall not be
                              recalculated as PM10.  However, all
                              subsequent increases in PM10 emissions must
                              be offset.

                    412.2     Except as provided in Section 412.5, any
                              emissions increase represented by an
                              authority to construct or permit to operate
                              which has been cancelled or has expired and
                              any emission reduction credits surrendered to
                              the District shall not be included in the
                              cumulative emissions increase calculation
                              pursuant to Section 413.

                    412.3     The potential to emit for all emissions units
                              installed after December 31, 1976 based on
                              current permits to operate or authorities to
                              construct where permits to operate have not
                              been issued, including the pending
                              application being reviewed.

                    412.4     All emission increases from the modification
                              to emissions units installed prior to
                              December 31, 1976 and modified after December
                              31, 1976 as determined by procedures
                              specified in Section 411 or procedures
                              specified in Rule 502 at the time of
                              modification.

                    412.5     Emission reduction credits obtained pursuant
                              to Rule 504, EMISSION REDUCTION CREDITS,
                              after December 31, 1976, from emissions units
                              installed after December 31, 1976.

               413  CALCULATION OF EMISSIONS - OFFSETS GENERAL:  The
                    emissions change for a new or modified emissions unit
                    shall be calculated by subtracting historic potential
                    emissions from proposed emissions.  Calculations shall
                    be performed separately for each pollutant and each
                    emissions unit for each calendar quarter.  Negative
                    emissions changes shall be processed under the
                    procedures specified in Rule 504, EMISSION REDUCTION
                    CREDITS, and Rule 507, FEDERAL OPERATING PERMIT
                    PROGRAM, for early Hazardous Air Pollutant reductions
                    satisfying the requirements of Section 112(i)(5) of the
                    Federal Clean Air Act as amended in 1990.

               414  CALCULATION OF EMISSIONS - OFFSETS REQUIRED FOR ROC,
                    NOX AND CO:  The cumulative net emissions increase
                    pursuant to Section 413 for a stationary source shall
                    be the sum of emissions from each of the following for
                    each calendar quarter expressed in terms of pounds per
                    quarter.

                    414.1     The potential to emit including associated
                              fugitive emissions, not previously offset,
                              for all emissions units installed after
                              September 21, 1993, based on current permits
                              to operate and authorities to construct,
                              where permits to operate have not been
                              issued, and the pending application.
                    414.2     All emission increases, including associated
                              fugitive emissions, not previously offset,
                              from the modification to emissions units
                              installed before September 21, 1993, but
                              modified after September 21, 1993, as
                              determined by procedures specified in 413 or
                              pursuant to calculation procedures specified
                              in Rule 502, NEW SOURCE REVIEW, at the time
                              of the modification.

                    Any emissions increase represented by an authority to
                    construct or permit to operate which has been cancelled
                    or has expired shall not be included in the cumulative
                    emissions increase calculation.

               415  CALCULATION OF EMISSIONS - OFFSETS REQUIRED FOR SOX AND
                    PM10:  The cumulative net emissions increase pursuant
                    to Section 413 for a stationary source shall be the sum
                    of emissions from each of the following for each
                    calendar quarter expressed in terms of pounds per
                    quarter.

                    415.1     The potential to emit including associated
                              fugitive emissions, not previously offset,
                              for all emissions units installed after
                              September 21, 1993, based on current permits
                              to operate or authorities to construct where
                              permits to operate have not been issued,
                              including the pending application being
                              reviewed.

                    415.2     All emission increases including associated
                              fugitive emissions, not previously offset,
                              from the modification to emissions units
                              installed before September 21, 1993, but
                              modified after September 21, 1993, as
                              determined by procedures specified in Section
                              413 or pursuant to calculation procedures
                              specified in Rule 502, NEW SOURCE REVIEW, at
                              the time of the modification.

                    Any emissions increase represented by an authority to
                    construct or permit to operate which has been cancelled
                    or has expired shall not be included in the cumulative
                    emissions increase calculation.

               416  POWER PLANTS:  This section shall apply to all power
                    plants proposed to be constructed in the District and
                    for which a Notice of Intention (NOI) or Application
                    for Certification (AFC) has been accepted by the
                    California Energy Commission.

                    416.1     Within 14 days of receipt of a Notice of
                              Intention, the Air Pollution Control Officer
                              shall notify the Air Resources Board and the
                              California Energy Commission of the
                              District's intent to participate in the
                              Notice of Intention proceeding.  If the
                              District chooses to participate in the Notice
                              of Intention proceeding, the Air Pollution
                              Control Officer shall prepare and submit a
                              report to the California Air Resources Board
                              and the California Energy Commission prior to
                              the conclusion of the non-adjudicatory
                              hearing specified in Section 25509.5 of the
                              California Public Resources Code. That report
                              shall include, at a minimum:
                         a.   a preliminary specific definition of Best
                              Available Control Technology for the proposed
                              facility;
                         b.   a preliminary discussion of whether there is
                              substantial likelihood that the requirements
                              of this rule and all other District
                              regulations can be satisfied by the proposed
                              facility;
                         c.   a preliminary list of conditions which the
                              proposed facility must meet in order to
                              comply with this rule or any other applicable
                              district regulation.
                         The preliminary determinations contained in the
                         report shall be as specific as possible within the
                         constraints of the information contained in the
                         Notice of Intention.
                    416.2     Upon receipt of an Application for
                              Certification for a power plant, the Air
                              Pollution Control Officer shall conduct a
                              determination of compliance review.  This
                              determination shall consist of a review
                              identical to that which would be performed if
                              an application for a permit to construct had
                              been received for the power plant.  If the
                              information contained in the Application for
                              Certification does not meet the requirements
                              of this rule, the Air Pollution Control
                              Officer shall, within 20 calendar days of
                              receipt of the Application for Certification,
                              so inform the California Energy Commission,
                              and the Application for Certification shall
                              be considered incomplete and returned to the
                              applicant for re-submittal.

                    416.3     The Air Pollution Control Officer shall
                              consider the Application for Certification to
                              be equivalent to an application for a permit
                              to construct during the determination of
                              compliance review, and shall apply all
                              provisions of this rule which apply to
                              applications for a permit to construct.

                    416.4     The Air Pollution Control Officer may request
                              from the applicant any information necessary
                              for the completion of the determination of
                              compliance review.  If the Air Pollution
                              Control Officer is unable to obtain the
                              information, the Air Pollution Control
                              Officer may petition the presiding
                              Commissioner of the California Energy
                              Commission for an order directing the
                              applicant to supply such information.

                    416.5     Within 180 days of accepting an Application
                              for Certification as complete, the Air
                              Pollution Control Officer shall make a
                              preliminary decision on:
                         a.   whether the proposed power plant meets the
                              requirements of this rule and all other
                              applicable district regulations, and;
                         b.   in the event of compliance, what permit
                              conditions will be required including the
                              specific Best Available Control Technology
                              requirements and a description of required
                              mitigation measures.
                         The preliminary written decision under Section
                         414.5 shall be treated as a preliminary decision
                         under Section 403 of this rule, and shall be
                         finalized by the Air Pollution Control Officer
                         only after being subject to the public notice and
                         comment requirements of Sections 403 and 404.  The
                         Air Pollution Control Officer shall not issue a
                         determination of compliance for the power plant
                         unless all requirements of this rule are met.

                    416.6     Within 240 days of the filing date, the Air
                              Pollution Control Officer shall issue and
                              submit to the California Energy Commission a
                              determination of compliance or, if such a
                              determination cannot be issued, shall so
                              inform the California Energy Commission.  A
                              determination of compliance shall confer the
                              same rights and privileges as an authority to
                              construct only when and if the California
                              Energy Commission approves the Application
                              for Certification, and the California Energy
                              Commission certificate includes all
                              conditions of the determination of
                              compliance.

                    416.7     Any applicant receiving a certificate from
                              the California Energy Commission pursuant to
                              this section and in compliance with all
                              conditions of the certificate shall be issued
                              a permit to operate by the Air Pollution
                              Control Officer.  If subject to the
                              requirements of Title V of the Federal Clean
                              Air Act as amended in 1990 (42 U.S.C. Section
                              7401 et seq.), the applicant must comply with
                              the applicable requirements of Rule 507,
                              FEDERAL OPERATING PERMIT PROGRAM.
          500  MONITORING AND RECORDS

               501  RECORDKEEPING:  The following records shall be
                    maintained for two years and shall be provided to the
                    Air Pollution Control Officer upon request.

                    501.1     Emergency Electrical Generating Equipment:
                              Records of operation for maintenance
                              purposes, for actual interruptions of power.

                    501.2     Portable and Temporary Equipment:  Records of
                              operating location and corresponding dates of
                              operation.

               502  RECORDKEEPING FOR SOURCES SUBJECT TO RULE 507:  The
                    recordkeeping requirements for sources subject to Rule
                    507, FEDERAL OPERATING PERMITS PROGRAM, shall include
                    all of the requirements of that rule in addition to the
                    separate recordkeeping requirements of applicable
                    federal requirements.