SACAQMD RULE 202 NEW SOURCE REVIEW          
LAST REVISED 02/26/91          

          SACRAMENTO METROPOLITAN AQMD                RULES AND REGULATIONS
                                   RULE 202  NEW SOURCE REVIEW
                                         Adopted 9-20-76
                   (Amended  6-19-79,  7-26-79, 4-19-83, 11-20-84, 2-26-91)
          

                                              INDEX

          100  GENERAL
               101 PURPOSE
               102 APPLICABILITY
               103 EXEMPTION - EMERGENCY ELECTRICAL GENERATING EQUIPMENT
               104 EXEMPTION - NOTIFICATION REQUIREMENTS
               105 EXEMPTION - REPLACEMENT EQUIPMENT
               106 EXEMPTION - RULE COMPLIANCE

          200  DEFINITIONS
               201 ACTUAL EMISSIONS
               202 ACTUAL EMISSION REDUCTIONS
               203 ACTUAL INTERRUPTIONS OF POWER
               204 ACTUAL OPERATING DAYS
               205 AFFECTED POLLUTANTS
               206 AMBIENT AIR QUALITY STANDARDS
               207 BEST AVAILABLE CONTROL TECHNOLOGY
               208 CARGO CARRIERS
               209 COMMUNITY BANK
               210 COMPLETE APPLICATION
               211 CONTIGUOUS PROPERTY
               212 COST-EFFECTIVE
               213 DAILY EMISSIONS LIMITATION
               214 EMISSIONS UNIT
               215 FLUORIDES
               216 FUGITIVE EMISSIONS
               217 HALOGENATED HYDROCARBONS
               218 MODIFICATION
               219 NON-ATTAINMENT POLLUTANT
               220 PM10
               221 PRECURSOR
               222 REACTIVE ORGANIC COMPOUND
               223 REASONABLY AVAILABLE CONTROL TECHNOLOGY
               224 RECONSTRUCTED SOURCE
               225 REDUCED SULFUR COMPOUNDS
               226 REPLACEMENT EQUIPMENT
               227 SEASONAL SOURCE
               228 STATIONARY SOURCE
               229 TOTAL REDUCED SULFUR COMPOUNDS

          300  STANDARDS
               301 BEST AVAILABLE CONTROL TECHNOLOGY
               302 OFFSET REQUIREMENTS, GENERAL
               303 LOCATION OF OFFSETS AND OFFSET RATIOS
               304 SEASONAL SOURCE OFFSETS
               305 INTERPOLLUTANT OFFSETS
               306 TRANSPORTATION OFFSETS
               307 AMBIENT AIR QUALITY STANDARDS and AIR QUALITY INCREMENTS
               308 DENIAL, FAILURE TO MEET STANDARDS


          400  ADMINISTRATIVE REQUIREMENTS
               401 ALTERNATIVE SITING
               402 COMPLETE APPLICATION
               403 AIR QUALITY MODELS
               404 PRELIMINARY DECISION
               405 PUBLICATION AND PUBLIC COMMENT
               406 PUBLIC INSPECTION
               407 AUTHORITY TO CONSTRUCT, FINAL ACTION
               408 REQUIREMENTS, PERMIT TO OPERATE
               409 ISSUANCE, PERMIT TO OPERATE
               410 REGULATIONS IN FORCE GOVERN
               411 CALCULATION OF EMISSIONS
               412 POWER PLANTS
               413 COMMUNITY BANK

          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  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  all  modifications  to existing
                   stationary  sources which, after construction,  emit  or
                   may emit any  affected  pollutants.  This rule shall not
                   apply to prescribed burning  of  forest,  agriculture or
                   range  land,  road  construction or any other  non-point
                   source  common  to  timber  harvesting  or  agricultural
                   practices.  Exemptions allowed in this Section 102 shall
                   not  be  used  to  exempt   any   stationary  source  or
                   modification, which would be subject to review under EPA
                   regulations, from permit requirements.

               103 EXEMPTION  - EMERGENCY ELECTRICAL GENERATING  EQUIPMENT:
                   The  Air  Pollution  Control  Officer  shall  exempt  an
                   applicant from the requirements of Sections 302, and 303
                   of this rule,  if  the  subject  of the application is a
                   project that would provide emergency electrical power or
                   if  the  application  is  a project that  would  provide
                   emergency water pumping for  flood  control and is not a
                   major  source  or  major  modification  under   the  EPA
                   definition, provided:
                   103.1 Operation   for   maintenance  purposes  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, and
                   103.2 Operation  for  other  than  maintenance  purposes
                         shall be limited to actual interruptions of  power
                         by the serving utility, or
                   103.3 Operation  for  other  than  maintenance  purposes
                         shall  be  limited  to maintaining the safety  and
                         preserving   the  integrity   of   nuclear   power
                         generating systems.

               104 EXEMPTION - NOTICING  REQUIREMENTS:  The requirements of
                   Sections   404,   405,   406,  and  407.2  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 has a net emissions change less
                   than  100  pounds  per  day of nitrogen  oxides,  sulfur
                   oxides, and reactive organic  compounds,  less  than  80
                   pounds per day of PM10, and less than 550 pounds per day
                   of carbon monoxide.

               105 EXEMPTION  -  REPLACEMENT EQUIPMENT: The requirements of
                   Sections 302 and  303  shall  not  apply  to replacement
                   equipment.

               106 EXEMPTION   -  RULE  COMPLIANCE:  The  requirements   of
                   Sections 302  and  303  shall not apply to modifications
                   necessary  to  comply  with   standards   contained   in
                   Regulation   4.    Section   106   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 4.

          200  DEFINITIONS

               201 ACTUAL  EMISSIONS: Measured or estimated emissions which
                   most  accurately   represent   the   emissions  from  an
                   emissions unit.

               202 ACTUAL  EMISSIONS  REDUCTIONS:  Reductions   of   actual
                   emissions from an emissions unit selected for on-site or
                   off-site  emissions  offsets. Actual emission reductions
                   shall be calculated pursuant to Section 411, Calculation
                   of Emissions and meet all of the following criteria:
                   202.1 The   emissions   reductions    shall   be   real,
                         enforceable, quantifiable, and permanent.
                   202.2 The   emissions   reductions   shall  be   surplus
                         emissions  reductions in excess of  any  emissions
                         reduction which is:
                              a.  required   or  encumbered  by  any  laws,
                                  rules, regulations,  agreements,  orders,
                                  or
                              b.  attributed  to  a control measure noticed
                                  for workshop in the District, or proposed
                                  or  contained in a  State  Implementation
                                  Plan, or
                              c.  proposed   or   contained   as  near-term
                                  measures in the District Air Quality Plan
                                  for   attaining   the  annual  reductions
                                  required by the California Clean Air Act.
                                  Temporary actual emissions reductions may
                                  be granted but shall  be surrendered upon
                                  implementation  of the near-term  control
                                  measure.
                   202.3 Emissions  reductions  attributed  to  a  proposed
                         control measure may be re-eligible  as  a  surplus
                         actual emissions reductions for:
                              a.  control   measures   identified   in  the
                                  District   Air   Quality  Plan  or  State
                                  Implementation Plan  where  no  rule  has
                                  been  adopted  within  two years from the
                                  scheduled   adoption   date,    provided,
                                  however,   the   Air   Pollution  Control
                                  Officer  has not extended  the  scheduled
                                  adoption date, or
                              b.  control measures  not  identified  in the
                                  District   Air   Quality  Plan  or  State
                                  Implementation Plan  where  no  rule  has
                                  been  adopted  and two years have elapsed
                                  beyond  the date  of  the  latest  public
                                  workshop notice.
                              c.  control measures proposed in the District
                                  Air Quality  Plan  which are not included
                                  into  the Plan adopted  by  the  District
                                  Board  shall   become   re-eligible  upon
                                  adoption of the Plan.
                   202.4 Source shutdowns and curtailments may not be given
                         emission   reduction   credit   in  the  case   of
                         non-attainment pollutants (Sections  219)  if they
                         occurred prior to the date of application unless:
                              a.  The  shutdown  or curtailment was claimed
                                  by  the affected  facility  as  a  credit
                                  within  60  days  of the surrender of the
                                  permit(s).    Shutdown   or   curtailment
                                  credits not claimed  within 60 days shall
                                  fund the Community Bank  as  provided  in
                                  Section 413, and
                              b.  The  proposed  new source or modification
                                  is a replacement,  and  the  shutdown  or
                                  curtailment   occurred  after  August  7,
                                  1977, or
                              c.  The proposed new  source  or modification
                                  does  not  meet the EPA definition  of  a
                                  major source  or  major modification, the
                                  shutdown  or curtailment  occurred  after
                                  August 7, 1977,  the  emission  reduction
                                  credit  is  used  at  the same stationary
                                  source.

               203 ACTUAL  INTERRUPTIONS OF 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, asbestos, beryllium, mercury, vinyl
                   chloride,  fluorides,  sulfuric  acid   mist,   hydrogen
                   sulfide,   total  reduced  sulfur,  and  reduced  sulfur
                   compounds.

               206 AMBIENT  AIR   QUALITY  STANDARDS:   State  and  federal
                   ambient air quality  standards.   For  the  purposes  of
                   submittal  to the US Environmental Protection Agency for
                   the 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):   For  any
                   emissions unit the most stringent of:
                   207.1 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.
                   207.2 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.
                   207.3 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.

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

               209 COMMUNITY  BANK:  A  depository  for preserving emission
                   reduction credits for use as offsets  in accordance with
                   Sections 302, 303, and 413.

               210 COMPLETE  APPLICATION:  Completeness of  an  application
                   for 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.

               211 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.

               212 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.  This section  shall  not  apply to stationary
                   sources meeting the EPA definition of  major  stationary
                   source or major modification.

               213 DAILY  EMISSIONS  LIMITATION:  One  or a combination  of
                   permit  conditions specific to an emissions  unit  which
                   restricts  its  maximum  daily  emissions, in pounds per
                   day,  at  or  below  the emissions associated  with  the
                   maximum design capacity.   A  daily emissions limitation
                   must be:
                   213.1 Contained in the latest authority to construct and
                         contained in or enforceable  by  the latest permit
                         to operate for the emission unit, and
                   213.2 Enforceable on a daily basis, and
                   213.3 Established   pursuant  to  a  permitting   action
                         occurring after  January  1,  1977 and used in the
                         calculation of net emissions changes.

               214 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 pollutant directly or
                   as fugitive emissions.

               215 FLUORIDES:    Elemental  fluorine   and   all   fluoride
                   compounds.
               216 FUGITIVE EMISSIONS:   Those  emissions  which  could not
                   reasonably pass through a stack, chimney, vent or  other
                   functionally equivalent opening.

               217 HALOGENATED  HYDROCARBONS:   For  the  purposes  of this
                   rule,         halogenated        hydrocarbons        are
                   1,1,1-trichloroethane,        methylene        chloride,
                   trichlorofluoromethane (CFC-11), dichlorodifluoromethane
                   (CFC-12),         chlorodifluoromethane        (CFC-22),
                   trifluoromethane   (CFC-23),    trichlorotrifluoroethane
                   (CFC-113),   dichlorotetrafluoroethane    (CFC-    114),
                   chloropentafluoroethane                       (CFC-115),
                   dichlorotrifluoroethane   (HCFC-123),  tetrafluoroethane
                   (HFC-134a),   dichlorofluoroethane    (HCFC-141b),   and
                   chlorodifluoroethane (HCFC-142b).

               218 MODIFICATION:  Any physical change, change  in method of
                   operation of (including change in fuel characteristics),
                   addition  to,  or  any change in hours of operation,  or
                   change in production rate of, which:
                   218.1 For an emissions unit:
                              a.  would  necessitate  a  change  in  permit
                                  conditions.
                              b.  is  not  specifically limited by a permit
                                  condition.
                              c.  results in  an  increase in emissions not
                                  subject to a daily emissions limitation.
                   218.2 For a stationary source: is  a modification of its
                         emissions unit, or addition of  any  new emissions
                         unit.
                   218.3 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.

               219 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.

               220 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).  Total  suspended  particulate  matter emissions
                   from a stationary source occurring after January 1, 1977
                   shall  be  recalculated as PM10, except as  provided  in
                   Section 302.7.

               221 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
                          Compound                   (Ozone)
                                                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


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

               223 REASONABLY  AVAILABLE  CONTROL  TECHNOLOGY  (RACT):  The
                   lowest  emission  limitation that a particular source is
                   capable  of  meeting  by  the  application  of  emission
                   control  technology   that   is   reasonably   available
                   considering  technical  and  economic feasibility.   The
                   criteria for RACT specified in the "California Clean Air
                   Act  Guidance  for  the  Determination   of   Reasonably
                   Available Control Technology and Best Available Retrofit
                   Control  Technology",  California  Air  Resources Board,
                   April 1990 shall be used.

               224 RECONSTRUCTED   SOURCE:    Any   stationary  source   or
                   emissions  unit undergoing physical  modification  where
                   the fixed capital cost of the new components exceeds 50%
                   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.

               225 REDUCED SULFUR COMPOUNDS:  The sulfur compounds hydrogen
                   sulfide, carbon disulfide and carbonyl sulfide.

               226 REPLACEMENT  EQUIPMENT:  A replacement  of  a  piece  of
                   equipment  with an identical  piece  of  equipment  with
                   emissions less  than or equal to those from the original
                   piece of equipment.

               227 SEASONAL SOURCE:   Any  stationary source with more than
                   90% of its annual emissions within a consecutive 120-day
                   period.

               228 STATIONARY SOURCE:  Any building,  structure,  facility,
                   or  installation  which  emits  or may emit any affected
                   pollutant directly or as a fugitive emission.
                   228.1 "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  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.
                   228.2 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, 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.)
                   228.3 The emissions within District boundaries  of cargo
                         carriers  associated  with  the  stationary source
                         shall be considered emissions from  the stationary
                         source to the extent provided in Section 411.5.

               229 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,  in  excess  of  the  levels
                   specified in Section 301.1:


                   301.1

                             Pollutant                 lb/day

                             Reactive organic            0
                             compounds

                             Nitrogen Oxides             0

                             Sulfur oxides               0

                             PM10                        0

                             Carbon monoxide           550

                             Lead                        3.3

                             Asbestos                    0.04

                             Beryllium                   0.0022

                             Mercury                       0.55
                                                    
                             Vinyl Chloride                5.5

                             Fluorides                    16

                             Sulfuric acid mist           38

                             Hydrogen sulfide             55
                                                 
                             Total reduced sulfur         55
                             compounds

                             Reduced sulfur compounds     55


               302 OFFSET REQUIREMENTS,  GENERAL:   Except  as  provided in
                   Section 302.2, an applicant shall provide offsets  which
                   are  actual  emission  reductions  for  new and modified
                   stationary  sources,  sufficient  to  offset   all   net
                   emission  changes  of  any  affected  pollutant  or  its
                   precursors, except as provided in Sections 302.3, 302.6,
                   and  302.7,  as  calculated  according to Section 411 of
                   this  rule  exceeding the levels  specified  in  Section
                   302.1.
                   302.1

                                  Pollutant              lb/day

                                  Reactive organic        150
                                  compounds

                                  Nitrogen oxides         150

                                  Sulfur oxides           150

                                  PM10                     80

                                  Carbon Monoxide         550


                   302.2 An  applicant   for   a   seasonal   source  whose
                         operations  occur  solely  during  a period  which
                         includes November, December, January,  or February
                         shall  provide  offsets which are actual emissions
                         reductions  for  new   and   modified   stationary
                         sources,  sufficient  to  offset  all net emission
                         changes of reactive organic compounds and nitrogen
                         oxides,  as calculated according to  Section  411,
                         exceeding 250 lbs/day.
                   302.3 Offsets for increases in carbon monoxide shall not
                         be required if the applicant, using an air quality
                         model   performed   pursuant   to   Section   403,
                         demonstrates   to  the  satisfaction  of  the  Air
                         Pollution Control  Officer  that  the  ambient air
                         quality  standards  will  not  be violated in  the
                         areas  to  be  affected,  and  will not  cause  or
                         contribute  to  a  violation  of the  ambient  air
                         quality standard.
                   302.4 In no case shall halogenated hydrocarbons  be used
                         as offsets for reactive organic compounds.
                   302.5 A stationary source constructed after February 26,
                         1991 or whose application is deemed complete after
                         February  26,  1991  which has exceeded the levels
                         specified in Section 302.1  for  any pollutant and
                         the applicant has provided emissions reductions to
                         fully  offset  the  emissions from the  stationary
                         source  to  zero,  the  applicant   shall  provide
                         offsets  for all subsequent net emissions  changes
                         in the pollutant from the stationary source.

                   302.6 The  applicant   shall  provide  offsets  for  all
                         subsequent   positive   emissions   changes   from
                         existing stationary  sources  constructed prior to
                         February 26, 1991 or whose application  is  deemed
                         complete  after February 26, 1991 from any new  or
                         modified emissions unit at the stationary source.
                   302.7 If the applicant  has  provided  full  offsets for
                         total   suspended   particulate  matter  emissions
                         occurring  since  January   1,  1977,  but  before
                         February   26,   1991,   those   total   suspended
                         particulate   matter   emissions   need   not   be
                         recalculated  as  PM10.   However, all  subsequent
                         increases in PM10 emissions must be offset.
                   302.8 Portable equipment which is periodically relocated
                         and is not used in more than  180  days at any one
                         location in the District within a 12  month period
                         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 initially permitted
                         location.

               303 LOCATION OF OFFSETS AND OFFSET RATIOS:
                   303.1 An applicant shall provide offsets  for  emissions
                         from a proposed stationary source subject  to  the
                         requirements  of  Section  302  according  to  the
                         following ratios:

                                                      Offset Ratio


                            Location of Offset   Non-         Other
                                                 Attainment   Affected

                                                 Pollutants   Pollutants

                            Same Source          1.1 to 1.0   1.1 to 1.0

                            Within 15-Mile
                            Radius               1.3 to 1.0   1.2 to 1.0


                            Greater than 15-
                            Mile but within 50-  2.1 to 1.0   1.3 to 1.0
                            Mile Radius


                            More than 50-Mile
                            Radius or Outside    2.1 to 1.0   1.3 to 1.0
                            Air Basin


                   303.2 Offsets  which  are  obtained pursuant to Sections
                         302 and 303 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 such offsets meet  the requirements
                         of District Rules and Regulations.

               304 SEASONAL SOURCE OFFSETS:  Emissions offset ratios stated
                   in  Section  303 shall be required for new  or  modified
                   seasonal sources  provided that the offsets occur within
                   the same period of  seasonal  operation during which the
                   seasonal source operates.  Offsets  obtained in a season
                   other  than that in which the proposed  source  will  be
                   operating  may  be  used  only  if  approved  by the Air
                   Pollution Control Officer.

               305 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.
                   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.

               306 TRANSPORTATION  OFFSETS:  Emission  offsets  under  this
                   section  may be allowed only  on  a  case-by-case  basis
                   subject to  the  approval  of  the Air Pollution Control
                   Officer.  Emissions offsets under  this  section  may be
                   allowed  on  a  case-by-case  basis for major stationary
                   sources or major modifications  under the EPA definition
                   subject to the approval of the EPA and the Air Pollution
                   Control Officer.
                   306.1 Transportation related actual  emission reductions
                         are  eligible  for emission offsets  provided  the
                         emission reductions  are enforceable by conditions
                         on the permit to operate and contractual agreement
                         between the source of  the  credits and the source
                         utilizing   the   credits   enforceable   by   the
                         Sacramento  Metropolitan  Air  Quality  Management
                         District.
                   306.2 An applicant applying for an emission offset shall
                         present  to  the Air Pollution Control  Officer  a
                         Transportation  Control  Plan  which  describes in
                         complete   detail   the   method   by   which  the
                         transportation   related  reductions  are  to   be
                         achieved.  The Transportation  Control  Plan  must
                         contain the data the Air Pollution Control Officer
                         deems necessary  for evaluation including, but not
                         limited to, any of the following:
                              a.  Ridership/commuter  surveys  to determine
                                  normal (baseline) busing/driving  habits;
                                  and/or
                              b.  Fleet  surveys  to  determine  emissions,
                                  areas   of  operation,  and  daily/yearly
                                  mileage; and/or
                              c.  Area  surveys   to  determine  number  of
                                  shopping,  work-home,  cold  starts,  hot
                                  soaks, etc.  in  the area affected by the
                                  Transportation Control Plan; and
                              d.  Projections of the  emissions  effects of
                                  the Transportation Control Plan; and
                              e.  Description  of  the  log  or  accounting
                                  system to be used to measure the  effects
                                  of the Transportation Control Plan; and
                              f.  Any  other  information the Air Pollution
                                  Control Officer deems necessary.
                   306.3 The Air Pollution Control Officer shall not make a
                         final determination of  the  amount  of reductions
                         achieved under a Transportation Control Plan until
                         the plan has been implemented 180 days.  Within 45
                         days after the required implementation  period the
                         Air  Pollution  Control  Officer  shall  issue   a
                         conditional approval or denial based on the actual
                         emission  reductions  achieved during the required
                         implementation period,  and not those predicted by
                         the Transportation Control Plan.
                   306.4 For  the purpose of this rule  permanent  emission
                         reductions  achieved  through  implementation of a
                         Transportation   Control   Plan   means   emission
                         reductions  achieved  during the specified  period
                         the  plan  is  in  effect,   provided   that   the
                         applicant:
                              a.  certifies in writing to the Air Pollution
                                  Control  Officer  the  length of time the
                                  Transportation  Control  Plan   will   be
                                  maintained; and
                              b.  provides   inspection   and   enforcement
                                  agreements    necessary   for   the   Air
                                  Pollution Control  Officer  to  determine
                                  the Transportation Control Plan is  being
                                  followed.
                   306.5 Emission  reduction  calculations for the emission
                         offset  from  application   of   a  Transportation
                         Control   Plan  shall  be  based  only  upon   the
                         reductions  affecting  the Sacramento Metropolitan
                         Air Quality Management District  as  determined by
                         the Air Pollution Control Officer.
                   306.6 Emission      reductions      achieved     through
                         subsidization, reimbursement, or  other incentives
                         related  to  public  transit use are eligible  for
                         emission offsets provided:
                              a.  A Transportation Control Plan as required
                                  by  Section  306.2   of   this   rule  is
                                  submitted in sufficient detail to satisfy
                                  the  Air  Pollution Control Officer  that
                                  the reductions  are  real, permanent, and
                                  enforceable within the  meanings  of this
                                  rule; and
                              b.  Only    reductions    achieved    through
                                  subsidization,  reimbursement,  or  other
                                  incentives to public transit which result
                                  in  a  service  or  use  which  would not
                                  otherwise be provided, and is not already
                                  accounted for as a tactic in the district
                                  non-attainment  plan,  are  eligible  for
                                  emission offsets; and
                              c.  The  applicant  submits  as part  of  the
                                  Transportation   Control   Plan   written
                                  affirmations      from     the     normal
                                  governmental funding agencies maintaining
                                  the    public      transit    that    the
                                  governmental  agencies funding levels for
                                  the public transit will not be lowered as
                                  the   result   of   the    subsidization,
                                  reimbursement,    or   other   incentives
                                  supplied  in  the Transportation  Control
                                  Plan; and
                              d.  The   emission   reductions    meet   the
                                  requirements   of   District   Rules  and
                                  Regulations.
                   306.7 Emission reductions achieved through conversion of
                         vehicle  fuels  are  eligible for emission offsets
                         provided:
                              a.  The  fuel  conversion  is  not  otherwise
                                  required by a federal, state, or district
                                  law, rule, regulation,  order  or  permit
                                  condition; and
                              b.  The  applicant  submits  a Transportation
                                  Control Plan as required by Section 306.2
                                  of  this  rule  in sufficient  detail  to
                                  satisfy the Air Pollution Control Officer
                                  that the reductions  are real, permanent,
                                  and enforceable within  the  meanings  of
                                  this rule; and
                              c.  The   provisions  of  Section  306.3  are
                                  complied with; and
                              d.  The   emission    reductions   meet   the
                                  requirements   of  District   Rules   and
                                  Regulations.
                   306.8 Emission reductions achieved  through reduction of
                         vehicle miles travelled by employees  because of a
                         car   pool,   van   pool,  or  bus  pool  under  a
                         Transportation  Control   Plan  are  eligible  for
                         emission offsets provided:
                              a.  A complete Transportation Control Plan is
                                  submitted as required by Section 306.2 of
                                  this rule; and
                              b.  An  accounting system  or  log  book  for
                                  determining actual reductions is provided
                                  in the Transportation Control Plan; and
                              c.  The Air  Pollution  Control Officer shall
                                  have immediate access,  when  he deems it
                                  necessary,  to  parking  facilities,  log
                                  books, or whatever information  necessary
                                  to verify reductions; and
                              d.  The    emission    reduction   meet   the
                                  requirements   of  District   Rules   and
                                  Regulations.

               307 AMBIENT  AIR  QUALITY  STANDARDS:    In  no  case  shall
                   emissions  from  the new or modified stationary  source,
                   cause or make worse  the  violation  of  an  ambient air
                   quality standard.  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.  In
                   making  this determination  the  Air  Pollution  Control
                   Officer  shall  take  into  account  the  mitigation  of
                   emissions  through  offsets  obtained  pursuant  to this
                   rule.

               308 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 this rule.


          400  ADMINISTRATIVE REQUIREMENTS:
               The  following  administrative   requirements   in  Sections
               401-411 shall apply to any activities pursuant to 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 412.

               401 ALTERNATIVE  SITING:   For  those  sources  for which an
                   analysis  of  alternative  sites,  sizes, and production
                   processes is required under Section 172 of the Clean Air
                   Act, the Air Pollution Control Officer shall require the
                   applicant to prepare an analysis functionally equivalent
                   to  the  requirements  of  Division  13  of  the  Public
                   Resources    Code   (California  Environmental   Quality
                   Act-CEQA).

               402 COMPLETE APPLICATION:  The Air Pollution Control Officer
                   shall determine whether  the application is complete not
                   later than 30 days after receipt  of the application, or
                   after such longer time as both the applicant and the Air
                   Pollution  Control  Officer  may  agree.    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  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.    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.

               403 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 EPA
                   "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.

               404 PRELIMINARY  DECISION:   Except  as provided in  Section
                   104, 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
                   disapproved.   The decision  shall  be  supported  by  a
                   succinct written analysis.
                   404.1 The Air Pollution  Control  Officer shall transmit
                         to the California Air Resources  Board and the EPA
                         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 405.

               405 PUBLICATION  AND PUBLIC COMMENT:  Except as provided  in
                   Section  104,  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.

               406 PUBLIC INSPECTION:  Except as provided in  Section  104,
                   the  Air  Pollution Control Officer shall make available
                   for public  inspection  at  the  Air  Pollution  Control
                   District's  office  the  information  submitted  by  the
                   applicant   and  the  Air  Pollution  Control  Officer's
                   analysis  no  later   than   the   time  notice  of  the
                   preliminary decision is published, pursuant  to  Section
                   405.  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.

               407 AUTHORITY TO CONSTRUCT, FINAL ACTION:
                   407.1 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.
                   407.2 Except  as  provided  in  Section  104,   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
                         Air Pollution Control District's office.

               408 REQUIREMENTS, PERMIT TO OPERATE:  As a condition for the
                   issuance  of  a  permit to operate,  the  Air  Pollution
                   Control Officer shall  require  that  the  new source or
                   modification, and any sources which provide  offsets, be
                   operated  in  the  manner assumed in making the analysis
                   required to determine  compliance with this rule, and as
                   conditioned in the authority  to  construct.  The permit
                   to  operate  shall  include  daily emission  limitations
                   which reflect Best Available Control Technology.

                   The operation of any 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 source.  Where  the  source  of  offsets is not
                   subject  to  a  permit,  a  written  contract  shall  be
                   required between the applicant and the owner or operator
                   of  such source, which contract, by its terms, shall  be
                   enforceable   by  the  Air  Pollution  Control  Officer.
                   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 EPA prior to the operation of the new source
                   or modification. The SIP 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.  A violation of the emission
                   limitation  provisions  of  any  such  contract shall be
                   chargeable to the applicant.

               409 ISSUANCE, PERMIT TO OPERATE:  The Air Pollution  Control
                   Officer  shall  issue  a  permit to operate a stationary
                   source 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 or will be likely
                   complied with by  any dates specified.  Conditions which
                   have not been met at  the  time the permit to operate is
                   issued shall be incorporated into 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.

               410 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 302.1 in force  on  the  date the application is
                   deemed complete.  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:
                   410.l 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
                   410.2 The  owner  or  operator  of the proposed  new  or
                         modified source has demonstrated  that  all  major
                         stationary  sources  (meeting  the EPA definition)
                         owned or operated by such person  (or by an entity
                         controlling,   controlled  by,  or  under   common
                         control with such  person) in California which are
                         subject to emission limitations are in compliance,
                         or  on  a  schedule  for   compliance,   with  all
                         applicable emission limitations and standards.

               411 CALCULATION  OF  EMISSIONS:  The  following  calculation
                   procedure  shall  be  used  to  determine; the emissions
                   change for an emissions unit, the  net  emissions change
                   for  the  stationary  source,  and the actual  emissions
                   reductions.   The five major steps  in  the  calculation
                   procedure are outlined  in Sections 411.1, 411.2, 411.3,
                   411.4, and 411.5.  All steps must be performed.
          202-2                                           February 26, 1991
          SACRAMENTO METROPOLITAN AQMD                RULES AND REGULATIONS
                   411.1 Current Emissions:  The  current emissions for new
                         emissions units are zero.   The  current emissions
                         for  modified  emissions  units for a  nonseasonal
                         source  shall  be  determined  for  each  calendar
                         quarter.  The current  emissions  for  a  modified
                         emissions  unit  for  a  seasonal source shall  be
                         determined for the operating season.

                         The current emissions for modified emissions units
                         shall  be determined using  either  the  emissions
                         represented  by  the daily emissions limitation or
                         the actual emissions.
                         a.   Use  the  daily   emissions   limitation   to
                              determine  the  current  emissions  when  the
                              latest  authority  to  construct  was  issued
                              after  January  1,  1977.   In  addition, the
                              daily emissions limitation must be  contained
                              in or enforceable by the latest authority  to
                              construct  and contained in or enforceable by
                              the latest permit to operate.
                         b.   Use the actual  daily  emissions to determine
                              the   current  emissions  when   the   latest
                              authority  to  construct  was  issued  before
                              January  1,  1977.   If  a  violation of law,
                              rule, regulation, permit condition,  order of
                              the district, the Air Resources Board, or the
                              Environmental   Protection   Agency  occurred
                              during  the  period  used  to  determine  the
                              emissions, then adjustments shall  be made to
                              reflect  the  emissions  which  the  existing
                              emissions unit would have caused without such
                              violation.   Actual daily emissions shall  be
                              calculated  for   nonseasonal  sources  using
                              Subsection 411.1.b.1 and for seasonal sources
                              using Subsection 411.1.b.2.
                              1.  Nonseasonal  sources:  The  actual  daily
                                  emissions for  each  calendar quarter are
                                  averaged  for  the  three   year   period
                                  immediately   preceding   the   date   of
                                  application.  If the last three years are
                                  unrepresentative    of    normal   source
                                  operations  then three consecutive  years
                                  of the last five  years may be used.  The
                                  actual daily emissions  for each calendar
                                  quarter  is calculated by  averaging  the
                                  actual  daily   emissions  for  the  same
                                  calendar quarter of the three years.
                                  Calculate the actual  emissions  for each
                                  calendar  quarter, in pounds per day,  by
                                  dividing  the  total  emissions  for  the
                                  calendar  quarter,   in  pounds,  by  the
                                  number of permitted or  actual  operating
                                  days for that calendar quarter.
                              2.  Seasonal  sources:  The  actual emissions
                                  for  each operating season  are  averaged
                                  for the  three  year  period  immediately
                                  preceding  the  date of application.   If
                                  the last three years are unrepresentative
                                  of normal source  operations  then  three
                                  consecutive  years of the last five years
                                  may be used.
                                  Calculate the  actual  emissions for each
                                  operating season, in pounds  per  day, by
                                  dividing  the  total  emissions  for  the
                                  operating   season,  in  pounds,  by  the
                                  number of actual  operating days for that
                                  operating season.   An  actual  operating
                                  day  is  any  day  which  results  in the
                                  emissions  of  an affected pollutant from
                                  the emissions unit.
                   411.2 Proposed Emissions: The proposed emissions from an
                         emissions unit for a nonseasonal  source  shall be
                         calculated   for   each   calendar  quarter.   The
                         proposed emissions from an  emissions  unit  for a
                         seasonal   source  shall  be  calculated  for  the
                         operating season.
                         Proposed  emissions   shall   represent   a  daily
                         emissions  limitation(s)  for  the new or modified
                         emissions unit.  The daily emissions limitation(s)
                         shall  be established as conditions  of  both  the
                         Authority  to  Construct and Permit to Operate for
                         the emissions unit.   For  nonseasonal  sources  a
                         different   daily   emissions  limitation  may  be
                         established for each calendar quarter.
                   411.3 Actual Emission Reductions: Actual emissions shall
                         be used to determine  actual  emissions reductions
                         for offsets, and interpollutant  offsets.   Actual
                         emissions reductions shall be adjusted to at least
                         reflect emission rates achievable with RACT not to
                         exceed  50% of emission reductions or 250 lbs/day,
                         whichever  is  lower.   Adjustments for RACT shall
                         provide funding for the Community Bank pursuant to
                         Section 413.  Actual Emissions Reductions shall be
                         calculated  according  to  methods   specified  in
                         Subsections 411.3.a and 411.3.b.
                         a.   Nonseasonal  sources:  The  actual  emissions
                              reductions   shall  be  calculated  for  each
                              calendar  quarter,  in  pounds  per  day,  by
                              dividing the total emissions for the calendar
                              quarter, in  pounds,  by the number of actual
                              operating days for that calendar quarter.
                         b.   Seasonal   sources:   The  actual   emissions
                              reductions  for a seasonal  source  providing
                              reductions for  another seasonal source shall
                              be calculated for  each  operating season, in
                              pounds  per  day,  by  dividing   the   total
                              emissions   for   the  operating  season,  in
                              pounds,  by the number  of  actual  operating
                              days for that operating season.
                   411.4 Emissions Change  -  Emissions  Unit:  The largest
                         quarterly or operating season emissions change for
                         an  emissions unit shall be used to determine  the
                         applicability    of    best    available   control
                         technology.  The emissions change for an emissions
                         unit shall be calculated as follows:
                         a.   The emissions change for a new emissions unit
                              shall be equal to the proposed emissions.
                         b.   The emissions change for a modified emissions
                              unit shall be equal to the proposed emissions
                              minus current emissions.
                   411.5 Net Emissions Change - Stationary  Source: The net
                         emissions change for the stationary  source  shall
                         be  equal  to the sum of all the emissions changes
                         for  all emissions  units  within  the  stationary
                         source  since January 1, 1977.  Except as provided
                         in Section  228  the  net emissions change for the
                         stationary source shall  not include cargo carrier
                         emissions unless emissions  reductions  from cargo
                         carriers   are   proposed  as  offsets.   The  net
                         emissions change for  a stationary source shall be
                         adjusted by:
                         a.   Emissions reductions  required to comply with
                              federal,  state,  or  district  laws,  rules,
                              regulations,    agreements,     orders,    or
                              identified in the adopted nonattainment plan.
                         b.   Any negative emissions change for  a  new  or
                              modified   emissions   unit  occurring  after
                              February  26,  1991  after  multiplied  by  a
                              factor of 0.9.
                         c.   Any  actual  emissions reductions  associated
                              with the voluntary  surrender  of a permit to
                              operate  issued  before  January 1,  1977  or
                              after January 1, 1977 if the  permit does not
                              contain  a  daily emissions limitation  after
                              multiplying by a factor of 0.9.
                         d.   Daily emissions  limitation  associated  with
                              the   voluntary  surrender  of  a  permit  to
                              operate  issued  after  January 1, 1977 after
                              multiplying by a factor of 0.9.
                         e.   Any  emissions  change  associated   with  an
                              authority  to  construct  which  has  expired
                              prior to issuance of the permit to operate.
                         f.   Differences   between   the  daily  emissions
                              limitation on the authority  to construct and
                              the permit to operate.
                         g.   Any actual emission reductions  committed  to
                              interpollutant     offsets,     or    offsite
                              mitigation.
                         h.   Any actual emissions reductions received from
                              interpollutant     offsets,     or    offsite
                              mitigation.

               412 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.
                   412.1 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   nonadjudicatory   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.
                   412.2 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 resubmittal.
                   412.3 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.
                   412.4 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.
                   412.5 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   412.5   shall   be   treated  as  a
                              preliminary  decision  under Section  404  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 404 and 405.   The
                              Air Pollution Control Officer shall not issue
                              a  determination  of  compliance  unless  all
                              requirements of this rule are met.
                   412.6 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.
                   412.7 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.

               413 COMMUNITY BANK:  A Community Bank is established for the
                   purposes of allowing  qualifying  sources to comply with
                   the offset provisions of Section 302  and  303  of  this
                   rule.   The  Community  Bank  offset  credits  shall  be
                   available  for use by sources after January 1, 1992, but
                   only to the  extent  that  the  Community Bank is funded
                   with onsite reductions and offset  credits.   Procedures
                   for  distribution  of the credits shall be developed  by
                   the  Air  Pollution  Control  Officer.   A  registry  of
                   Community Bank offset credits shall be maintained by the
                   District  and  shall  be   made   available  for  public
                   inspection.  The Community Bank is funded by:
                   413.1 Preserving  10%  of  all  onsite   reductions   in
                         accordance with Section 411.5 of this rule or with
                         the  equivalent  of  10%  of  all  emissions being
                         offset  in  accordance  with section 302  and  303
                         after February 26, 1991.
                   413.2 Adjustments for RACT as provided in Section 411.3.
                   413.3 Shutdowns of stationary sources  or emission units
                         not claimed for emission credits by  the  facility
                         within 60 days of the surrender of the permit.