SCAQMD RULE 2005 NEW SOURCE REVIEW FOR RECLAIM
LAST REVISED 10/15/93
                                               (Adopted October 15, 1993)

          RULE 2005.   NEW SOURCE REVIEW FOR RECLAIM

          (a)  Purpose
               This  rule sets forth pre-construction review requirements
               for new  facilities  subject  to  the  requirements of the
               RECLAIM program and for modifications to  existing RECLAIM
               facilities.   The purpose of this rule is to  ensure  that
               the operation of  such  facilities does not interfere with
               progress in attainment of the National Ambient Air Quality
               Standards,  and that future  economic  growth  within  the
               South Coast Air Basin is not unnecessarily restricted.

          (b)  Requirements for New or Relocated RECLAIM facilities
               (1)  The  Executive   Officer   shall   not   approve  the
                    application   for  a  Facility  Permit  to  authorize
                    construction or  installation  of  a new or relocated
                    facility unless the applicant demonstrates that:
                    (A)  Best Available Control Technology (BACT) will be
                         applied to every emission source  located at the
                         facility; and
                    (B)  the operation of any emission source  located at
                         the new or relocated facility will not result in
                         a   significant  increase  in  the  air  quality
                         concentration  for  NO2 as specified in Appendix
                         A.   The  applicant  shall   use   the  modeling
                         procedures specified in Appendix A.
               (2)  The   Executive   Officer   shall   not  approve  the
                    application   for   a   Facility  Permit  authorizing
                    operation of a new or relocated  facility, unless the
                    applicant demonstrates that:
                    (A)  the facility holds sufficient RTCs to offset the
                         total facility emissions for  the  first year of
                         operation, at a one to one ratio; and
                    (B)  the   RTCs   procured   to   comply   with   the
                         requirements   of  subparagraph  (b)(2)(A)  were
                         obtained  pursuant   to   the   requirements  of
                         subdivision (e).

          (c)  Requirements for Existing RECLAIM Facilities
               (1)  The   Executive   Officer   shall   not  approve   an
                    application  for  a  Facility  Permit  Amendment   to
                    authorize   the  installation  of  a  new  source  or
                    modification  of  an existing source which results in
                    an emission increase  as  defined in subdivision (d),
                    unless the applicant demonstrates that:
                    (A)  BACT will be applied to the source; and
                    (B)  the operation of the source will not result in a
                         significant   increase  in   the   air   quality
                         concentration for  NO2  as specified in Appendix
                         A.   The  applicant  shall  use   the   modeling
                         procedures specified in Appendix A.
               (2)  The   Executive   Officer   shall   not   approve  an
                    application  for  a  Facility  Permit  Amendment   to
                    authorize  operation  of  the  new or modified source
                    which results in an emission increase  as  defined in
                    subdivision  (d),  unless  the applicant demonstrates
                    that the facility holds sufficient RTCs to offset the
                    annual  emission  increase  for  the  first  year  of
                    operation at a one to one ratio.
               (3)  The   Executive   Officer   shall  not   approve   an
                    application  to increase an annual  Allocation  to  a
                    level greater than the facility's starting Allocation
                    plus  non-tradeable  credits,  unless  the  applicant
                    demonstrates that:
                    (A)  each  source  which creates an emission increase
                         as defined in subdivision (d) will:
                         (i)  apply BACT;
                         (ii) not result in a significant increase in the
                              air  quality   concentration   for  NO2  as
                              specified in Appendix A; and
                    (B)  the  facility  holds  sufficient  RTCs  acquired
                         pursuant to subdivision (e) to offset the annual
                         increase  in  the facility's starting Allocation
                         plus non-tradeable credits at a one to one ratio
                         for a minimum of one year.

          (d)  Emission Increase
               An increase in emissions  occurs  if  a  source's  maximum
               hourly potential to emit immediately prior to the proposed
               modification  is  less than the source's post-modification
               maximum hourly potential  to emit.  The amount of emission
               increase will be determined  by comparing pre-modification
               and post-modification emissions  on an annualized basis by
               using:  (1) an operating schedule of 24 hours per day, 365
               days  per  year; or (2) a permit condition  limiting  mass
               emissions.

          (e)  Trading Zones Restrictions
               Any increase  in  an  annual Allocation to a level greater
               than   the   facility's   starting    plus   non-tradeable
               Allocations,  and  all emissions from a new  or  relocated
               facility must be fully offset by obtaining RTCs originated
               in one of the two trading  zones  as  illustrated  in  the
               RECLAIM  Trading Zones Map.  A facility in Zone 1 may only
               obtain RTCs  from Zone 1.  A facility in Zone 2 may obtain
               RTCs from either Zones 1 or 2, or both.

          (f)  Offsets
               Any  facility  which   was  required  to  provide  offsets
               pursuant  to  paragraphs (b)(2),  (c)(2)  or  subparagraph
               (c)(3)(B) shall,  at  the  commencement of each compliance
               year, hold RTCs in an amount  equal  to the amount of such
               required offsets.  The Facility Permit  holder  may reduce
               the   amount   of   offsets   required  pursuant  to  this
               subdivision  by  accepting  a  permit  condition  limiting
               emissions  which  shall  serve  in lieu  of  the  starting
               Allocation  plus  non-tradeable credits  for  purposes  of
               paragraph (c)(3).   Unused  RTCs  acquired  to comply with
               this  subdivision  or  with paragraphs (b)(2), (c)(2),  or
               subparagraph  (c)(3)(B)  may   be  sold  only  during  the
               reconciliation  period  for  the  fourth  quarter  of  the
               applicable compliance year.  The Facility Permit for a new
               or modified facility shall require  compliance  with  this
               subparagraph, if applicable.

          (g)  Additional Federal Requirements for Major Stationary
               Sources
               The  Executive  Officer  shall not approve the application
               for a Facility Permit or an Amendment to a Facility Permit
               for a new, relocated or modified  major stationary source,
               as  defined  in  the  Clean  Air  Act, 42  U.S.C.  Section
               7511a(e), unless the applicant:
               (1)  certifies that all other major  stationary sources in
                    the state which are controlled by  the  applicant are
                    in compliance with all applicable federal,  state and
                    local  emission  limitations  or standards (42 U.S.C.
                    Section 7503(a)(3)); and
               (2)  submits  an  analysis  of alternative  sites,  sizes,
                    production   processes  and   environmental   control
                    techniques for the proposed source which demonstrates
                    that   the   benefits    of   the   proposed   source
                    significantly outweigh the  environmental  and social
                    cost   imposed   as   a   result   of  its  location,
                    construction,  or  modification  (42  U.S.C.  Section
                    7503(a)(5)).

          (h)  Public Notice
               The  applicant  shall provide public notice, if  required,
               pursuant to Rule 212 - Standards for Approving Permits.

          (i)  Rule 1401
               All  new  or  modified   sources  shall  comply  with  the
               requirements  of  Rule  1401   -   New  Source  Review  of
               Carcinogenic Air Contaminants, if applicable.

          (j)  Compliance with State and Federal New Source Review
               Requirements
               By  May  of  each year, beginning in 1995,  the  Executive
               Officer  will  report  to  the  District  Governing  Board
               regarding the effectiveness  of  Rule  2005 in meeting the
               federal  New  Source  Review  (NSR) requirements  for  the
               preceding year.  The Executive  Officer  may impose permit
               conditions  to  monitor  and ensure compliance  with  such
               requirements.

          (k)  Exemptions
               (1)  Functionally identical source replacements are exempt
                    from the requirements  of  subparagraph  (c)(1)(B) of
                    this rule.
               (2)  Physical    modifications   that   consist   of   the
                    installation of equipment where the modification will
                    not  increase  the  emissions  rate  of  any  RECLAIM
                    pollutant,   and   will  not  cause  an  increase  in
                    emissions   above   the   facility's   current   year
                    Allocation, shall be  exempt from the requirements of
                    paragraph (c)(2).
               (3)  Increases  in hours of operation  or  throughput  for
                    equipment or processes permitted prior to October 15,
                    1993  that  the   applicant  demonstrates  would  not
                    violate any permit  conditions  in  effect on October
                    15,  1993  which  were  imposed  in  order  to  limit
                    emissions  to  implement  New  Source  Review  offset
                    requirements,  shall  be exempt from the requirements
                    of this rule.


                                    APPENDIX A
          The following sets forth the procedure  for  complying with the
          air  quality modeling requirements.  An applicant  must  either
          (1) provide  an  analysis,  or  (2) show by using the Screening
          Analysis  below, that a significant  increase  in  air  quality
          concentration will not occur.

          Table A-1 of the screening analysis is subject to change by the
          Executive Officer, based on improved modeling data.


                                SCREENING ANALYSIS
          Compare the  emissions  from the equipment you are applying for
          to those in Table A-1.  If  the  emissions  are  less  than the
          allowable  emissions, no further analysis is required.  If  the
          emissions are  greater  than  the  allowable  emissions, a more
          detailed air quality modeling analysis is required.


                                     Table A-1
                                Allowable Emissions
                         for Noncombustion Sources and for
               Combustion Sources less than 40 Million BTUs per hour

          Heat Input Capacity                     NOx
          (million BTUs/hr)                     (lbs/hr)
          ---------------------                 --------
          Noncombustion Source                    0.068
                   2                              0.20
                   5                              0.31
                  10                              0.47
                  20                              0.86
                  30                              1.26
                  40                              1.31


                                     Table A-2
                  Most Stringent Ambient Air Quality Standard and
                         Allowable Change in Concentration
                For Each Air Contaminant/Averaging Time Combination

                                       Most Stringent  Significant Change in
          Air           Averaging       Air Quality         Air Quality
          Contaminant   Time              Standard         Concentration
          -----------  ----------     ------- --------  --------- ----------
          Nitrogen      1-hour        25 pphm  500 ug/m3  1 pphm    20 ug/m3
          Dioxide       Annual        5.3 pphm 100 ug/m3  0.05 pphm  1 ug/m3




              PLEASE NOTE HEREIN ATTACHED SHOULD BE THE MAP ENTITLED
              "RECLAIM TRADING ZONES SOUTH COAST AQMD AIR MONITORING
              STATIONS"


                       
                                   PLACEMENT OF
                      REGULATION XIII EMISSIONS OFFSET ZONES
                            INTO RECLAIM TRADING ZONES



                           RECLAIM Trading          RECLAIM Trading
                                Zone 1                   Zone 2

                           -                                         -
                                 1                        8           
                                 2                        9           
                                 3                       10           
                                 4                       11           
                                 5                                    
          REGULATION XIII        6             15 (In Part)           
          EMISSION OFFSET        7                       22           
          ZONES                 12                       23           
                                13                       24           
                                16                       25           
                                17                       26           
                                18             27 (In Part)           
                                19                       28           
                                20                                    
                                21                       32           
                                                         33           
                                                         34           
                                                         35           
                                                         36           
                                                         37           
                                                         38           
                           -                                         -