SCAQMD RULE 2004 REQUIREMENTS                      
LAST REVISED 12/07/95
                      
                      
                      (Adopted October 15, 1993) (Amended December 7, 1995)


          RULE 2004.  REQUIREMENTS

          (a) Purpose

              The purpose of this rule is to establish the requirements for
              operating under the RECLAIM program.  The rule includes
              provisions pertaining to permits, Allocations, reporting,
              variances, and breakdowns.

          (b) Compliance Period and Certification of Emissions

              (1) The compliance year shall be divided into four quarters 
                  for emission reporting and certification purposes.  The 
                  30 calendar days after the conclusion of each of the first 
                  three quarters shall be a reconciliation period.  During 
                  the reconciliation period, the Facility Permit holder 
                  shall calculate the facility's total emissions for the 
                  quarter, acquire and have credited to the facility, 
                  pursuant to Rule 2007 - Trading Requirements, any RTCs
                  necessary to reconcile the Allocation to the emissions, 
                  and submit to the Executive Officer a Quarterly 
                  Certification of Emissions.

              (2) The Quarterly Certification of Emissions shall be made in
                  the manner and form specified by the Executive Officer and 
                  shall be certified for accuracy by the highest ranking 
                  management official with responsibility for operation of 
                  equipment subject to the Facility Permit.  The Quarterly 
                  Certification of Emissions shall be calculated as required 
                  by Rules 2011 - Requirements for Monitoring, Reporting and 
                  Recordkeeping for Oxides of Sulfur (SOx) Emissions, and 
                  2012 - Requirements for Monitoring, Reporting and 
                  Recordkeeping for Oxides of Nitrogen (NOx) Emissions, and 
                  Facility Permit conditions applicable to the facility.

              (3) Upon receipt of the certified Quarterly Report, the
                  Executive Officer will debit the RTC Listing for the 
                  submitting facility by the amount certified in the report.

              (4) The 60 calendar days following the last day of each
                  compliance year shall be the reconciliation period for 
                  the last quarter.  On or before the last day of such 
                  reconciliation period, the Facility Permit holder shall 
                  calculate the facility's total emissions for the last 
                  quarter, acquire and have credited to the facility, 
                  pursuant to Rule 2007 - Trading Requirements, any RTCs 
                  necessary to reconcile the Allocations to the emissions,
                  and submit an Annual Permit Emissions Program (APEP) 
                  report, as prescribed by the Executive Officer, for the 
                  purpose of compliance reporting, permit review, and 
                  determination of fees.  As part of the APEP report, the 
                  Facility Permit holder shall accurately report the 
                  information specified in Rule 2015 subparagraph (b)(1)(C), 
                  (b)(1)(D), and (b)(1)(H) for the District's annual audit.
             
              (5) Except as provided in subdivision (c), the reconciliation
                  period following the end of a quarter shall be used to 
                  reconcile the Allocation only with emissions from that 
                  quarter.

          (c) Correction of Quarterly Certification of Emissions

              (1) The Facility Permit holder may, at any time prior to the
                  end of the reconciliation period for the last quarter of 
                  the compliance year, make corrections to any quarterly 
                  certification of emissions, provided that the Facility 
                  Permit holder demonstrates that:

                  (A) emissions were inaccurately certified due to an error
                      caused by conditions beyond the reasonable control of 
                      the Facility Permit holder; and

                  (B) the corrected information is accurate; and

                  (C) the Facility Permit holder has made the correction
                      within thirty days of discovering the error 
                      necessitating the correction or within thirty days of 
                      when the error reasonably could have been discovered, 
                      whichever is earlier.

              (2) If a correction is made to a Quarterly Certification of
                  Emissions:

                  (A) the certification requirements set forth in 
                      paragraph (b)(2) shall apply to the correction; and

                  (B) the RTC Listing will be amended to show the corrected
                      amount.

                  (C) the Facility Permit holder shall, within 30 days of 
                      the correction of the Quarterly Certification of 
                      Emission, but no later than the end of the 
                      reconciliation period for the last quarter, acquire 
                      any RTCs necessary to reconcile the Allocation to the 
                      revised certification.

          (d) Prohibition of Emissions in Excess of Annual Allocation

              (1) Emissions from a RECLAIM facility from the beginning of a
                  compliance year through the end of any quarter shall not 
                  exceed the annual emissions Allocation in effect at the 
                  end of the applicable reconciliation period for such 
                  quarter.  Except as provided in paragraph (d)(2), any such 
                  emissions in excess of the Allocation shall constitute a 
                  single, separate violation of this rule for each day of 
                  the compliance year (365 days).

              (2) In the event of a violation of paragraph (d)(1), the
                  Facility Permit holder may, pursuant to this paragraph, 
                  establish a number of violations less than that set forth 
                  in paragraph (d)(1) above.  The number of violations under 
                  this paragraph shall be the number of days or portion 
                  thereof, during which any source of the subject RECLAIM 
                  pollutant operated after the Allocation was exceeded, plus 
                  one violation for each 1,000 pounds, or portion thereof, 
                  emitted in excess of the Allocation.  In order to 
                  establish the number of violations under this paragraph, 
                  the Facility Permit holder shall have the burden of
                  establishing the number of days, or such lesser period as 
                  can be established, that the cumulative facility emissions 
                  were less than the annual emission Allocation.  If the 
                  Facility Permit holder is not able to establish the number 
                  of days or period during which the cumulative facility 
                  emissions were less than the annual emission Allocation, 
                  the facility shall be in violation pursuant to 
                  paragraph (d)(1) of this rule.

              (3) If the average annual price of RTCs exceeds $8,000 dollars
                  per ton then for purposes of paragraph (d)(2) of this 
                  rule, one violation per 500 pounds or portion thereof, of 
                  excess emissions shall be used in lieu of one violation 
                  per 1,000 pounds or a portion thereof, of excess 
                  emissions.  The average annual price of RTCs will be the 
                  price most recently determined pursuant to 
                  Rule 2015 (b)(1)(E).

              (4) For purposes of this rule, emissions from the facility
                  shall be determined solely pursuant to methods and 
                  procedures specified in Regulation XX and the Facility 
                  Permit, if applicable.

          (e) Prohibition of Submission of an Inaccurate Quarterly
              Certification of Emissions

              (1) Any Quarterly Certification of Emissions determined by 
                  the Executive Officer to be inaccurate, shall constitute 
                  a violation of this rule, unless the report was corrected 
                  by the Facility Permit holder in accordance with the 
                  requirements of paragraph (c)(1).

              (2) A violation of this subdivision shall constitute a single,
                  separate violation of this rule for each day in the quarter.

          (f) Permit Requirements

              (1) The Facility Permit holder shall, at all times, comply 
                  with all rules and permit conditions applicable to the 
                  facility, as specified in the Facility Permit.

              (2) A person shall not build, erect or install a new source 
                  or a modification as defined in Rule 2000 - General, 
                  without first complying with Rule 201 - Permit to 
                  Construct.

          (g) Emissions in Excess of a Concentration Limit

              (1) In the event emissions exceed a concentration limit, as
                  established by a source test, the days of violation shall 
                  be presumed to include the date of the source test and 
                  each and every day thereafter until the Facility Permit 
                  holder establishes that continuous compliance has been 
                  achieved, except to the extent the Facility Permit holder 
                  can prove that there were intervening days during which 
                  no violation occurred or that the violation was not 
                  continuing in nature.

              (2) In the event emissions exceed a concentration limit, as
                  established by a source test, the emissions from the 
                  source to which the concentration limit applies shall be 
                  calculated using the higher concentration for purposes of 
                  determining compliance with the facility's Allocation 
                  until the Facility Permit holder demonstrates that it is 
                  in compliance with the concentration limit set forth in 
                  the Facility Permit.

          (h) Federal Requirements for the Use of Clean Fuels or Advanced
              Control Technology

              Effective November 15, 1998, each new, modified, and existing
              electric utility and industrial and commercial boiler which 
              emits more than 25 tons per year of Oxides of Nitrogen shall:

              (1) burn as its primary fuel natural gas, methanol, or ethanol
                  (or a comparably low polluting fuel); or

              (2) use advanced control technology, such as catalytic control
                  technology or other comparably effective control methods, 
                  for reduction of emissions of Oxides of Nitrogen.

              For purposes of paragraph (h)(1), the term "primary fuel" 
              means the fuel which is used 90 percent or more of the 
              operating time.  This subdivision shall not apply during any 
              natural gas supply emergency as defined in Title III of the 
              Natural Gas Policy Act of 1978.

          (i) Breakdown Provisions

              (1) The Facility Permit holder shall report a breakdown by
                  telephone or facsimile to the Executive Officer within 
                  one hour of such breakdown or within one hour of the time 
                  the Facility Permit holder knew or reasonably should have 
                  known of its occurrence.  Such report shall identify the 
                  time, specific location, equipment involved, responsible 
                  party to contact for further information, and, to the 
                  extent known, the causes of the breakdown and the 
                  estimated amount of the emissions resulting from it.  The 
                  estimated time for repairs shall be reported as soon as 
                  possible thereafter.  No breakdown may be claimed pursuant 
                  to paragraph (i)(2) if a breakdown report is not made in
                  accordance with this paragraph.

              (2) Emissions in excess of those occurring under normal
                  operating conditions ("excess emissions") caused by a 
                  breakdown shall not be counted in determining compliance 
                  with the annual Allocation provided that within 
                  seven (7) days of the breakdown, a Breakdown Emissions 
                  Plan is submitted to the Executive Officer which contains 
                  all of the following:
                
                  (A) an identification of the equipment involved in causing
                      or suspected in having caused or been affected by the 
                      breakdown;

                  (B) the duration of time during which the emissions
                      resulting from the breakdown occurred or are expected 
                      to continue;

                  (C) to the extent known, an identification of the types of
                      emissions resulting from the breakdown;

                  (D) to the extent known, a quantification of the emissions
                      resulting from the breakdown and the method used to 
                      quantify the emissions, consistent with the 
                      requirements of Rules 2011 and 2012 and Appendix A 
                      for each rule;

                  (E) the names of all operators of the identified equipment,
                      their immediate supervisors, and the managers 
                      responsible for the operation and/or maintenance of 
                      the identified equipment;

                  (F) the names of any witnesses to the breakdown;

                  (G) evidence substantiating that the emissions resulting
                      from the breakdown did not result from operator error, 
                      neglect or improper operation or maintenance 
                      procedures;

                  (H) evidence substantiating that steps were immediately
                      taken to correct the condition causing the breakdown 
                      and to minimize the emissions resulting from the 
                      breakdown;

                  (I) evidence substantiating that it was beyond the RECLAIM
                      Facility Permit holder's reasonable control to correct 
                      the breakdown condition within 24 hours; and

                  (J) evidence substantiating that the RECLAIM Facility 
                      Permit holder was unable to provide on-site offsets 
                      for the excess emissions resulting from the breakdown.

              (3) Mass emissions under normal operating conditions shall be
                  calculated using concentration limits, emission factors, 
                  emission rates or fuel sulfur content specified in the 
                  Facility Permit, and throughput, monitored as required by 
                  Rules 2011, 2012, and the Appendices thereto.  If such 
                  throughput data is not available, throughput determined 
                  pursuant to the missing data provisions of the Appendices 
                  to Rule 2011 and 2012.

              (4) Excess emissions occurring within the first 24 hours after
                  the breakdown shall not be counted in determining 
                  compliance with the RECLAIM facility's annual Allocation, 
                  if the Breakdown Emissions Plan meets the requirements of 
                  subparagraphs (i)(2)(A) through (H).
             
              (5) Excess emissions occurring beyond the first 24 hours and 
                  up to thirty (30) days after the breakdown shall not be 
                  counted in determining compliance with the RECLAIM 
                  facility's annual Allocation if the Breakdown Emissions 
                  Plan meets the requirements of subparagraphs (i)(2)(A) 
                  through (J).

              (6) Excess emission fees shall be assessed pursuant to 
                  Rule 301 Permit Fees.

              (7) The Executive Officer will notify the RECLAIM Facility
                  Permit holder, in writing, within thirty calendar days of
                  submission, regarding whether the plan is approved or
                  disapproved.  If approved, the notification shall specify 
                  the duration during which the excess emissions resulting 
                  from the breakdown shall not be counted in determining the 
                  RECLAIM facility's annual Allocation, and the type and 
                  amount of emissions so exempt.  If the Executive Officer 
                  does not respond within thirty days, the Facility Permit 
                  holder may deem the plan denied for appeal purposes.

          (j) Tampering

              A person shall not tamper or interfere with, alter or adjust 
              any monitoring or other equipment used to detect the amount,
              concentration, rate or other characteristic of emissions
              emanating from any source in a RECLAIM facility in any way 
              which conceals or disguises the type and quantity of any such
              emissions.

          (k) Compliance Dates

              The failure to comply with any requirement in this regulation
              within the time specified shall constitute a separate violation
              for each day until such requirement is satisfied.

          (l) Variances

              No variance may be granted from the following provisions of
              this regulation:

              (A) any provisions which require Permits to Construct or 
                  which set forth requirements for Permits to Construct;

              (B) subdivision (n) of this rule or the missing data 
                  provisions of Appendices A to Rules 2011 and 2012;

              (C) subdivisions (b) and (d) of Rule 2004, and any permit
                  conditions which state annual Allocations.

          (m) Emergencies

              In the event that responses to national, regional, or local
              emergencies require increased emissions in excess of 
              Department of Defense (DoD) facility Allocations, such 
              emissions shall not be counted for purposes of determining 
              compliance with Rule 2004 (d)(1).  The DoD facility will 
              notify the Executive Officer, in writing, within one week 
              after the start of increased emissions caused by emergency 
              operations as listed above.

          (n) Missing Data Provisions for Recordkeeping and Reporting

              (1) In the event the Executive Officer determines that the
                  emissions data developed or reported by the Facility 
                  Permit holder are inaccurate or incomplete or not derived 
                  in the manner required by this regulation or the Facility 
                  Permit, the missing data provisions set forth in 
                  Rules 2011 and 2012, Appendices A shall be used for the 
                  purpose of calculating emissions for recordkeeping, 
                  reporting, certification, and compliance with 
                  Allocations.

              (2) In the event a facility does not meet the monitoring
                  requirements, emissions shall be determined pursuant to 
                  the missing data provisions of the applicable Rule 2011 
                  or 2012 Appendices A for purposes of determining 
                  compliance with Rule 2004 (d)(1).