SAN DIEGO COUNTY AIR POLLUTION CONTROL DISTRICT

This rule was amended on 9/19/84 and 1/30/85 to implement the Federal Prevention of Significant Deterioration Program (PSD), and became effective on 11/21/85 upon EPA delegation of the authority to implement & enforce the PSD Program.

RULE 20.1. APPLICABILITY, DEFINITIONS, EMISSION CALCULATIONS, EMISSION OFFSETS AND BANKING, EXEMPTIONS, AND OTHER REQUIREMENTS

(Effective 7/5/79; Delegation Effective 11/21/85; Rev. Effective 12/15/87)

(a) APPLICABILITY

If an Authority to Construct is required by Rule 10 and the application demonstrates potential compliance with all other applicable air pollution rules and regulations, then the application must also demonstrate compliance with the applicable standards, if any, of Rules 20.2, 20.3, 20.4, 20.5, 20.6, and 20.7. Except as provided in Section (e), Exemptions, the applicability of each standard or set of standards is as follows:

1. Rule 20.2, Standard for Authority to Construct - Best Available Control Technology, is applicable when a unit or unit modification that constitutes a major source or major modification regardless of contemporaneous emission reductions at the stationary source, or using the methods of Rule 20.1(c)(4), the calculated daily emissions increase at the stationary source is equal to or greater than any of the following amounts:









2. Rule 20.3, Standards for Authority to Construct - Air Quality Analysis and Impact, is applicable when, using the methods of Rule 20.1(c)(4), the calculated daily emissions increase at the new or modified stationary source is equal to or greater than the following amounts:









3. Rule 20.4, Standards for Authority to Construct - Lowest Achievable Emission Rates, is applicable when a new or modified stationary source results in an emissions increase, as calculated by Rule 20.1(c)(4), of the amounts specified below of organic compounds or any air contaminant for which a National Ambient Air Quality Standard (NAAQS) is exceeded within the District.





(i) For any new stationary source an emissions increase of 50 tons (45360 kg) per year of particulate matter, sulfur oxides, nitrogen oxides, organic compounds, lead compounds including elemental lead, or 100 tons per year of carbon monoxide.



(ii) For any existing stationary source that is to be modified but which does not already have an actual emission rate as calculated by Rule 20.1(c)(1) equal to or greater than the levels specified in (i) above, Rule 20.4 is applicable if the emissions increase due to the modification equals or exceeds any of the amounts specified in (i) above.



(iii) For any existing stationary source that is to be modified that already has an actual emission rate equal to or greater than the amounts listed in (i) above, Rule 20.4 is applicable if the modification will cause an emissions increase equal to or greater than any of the following amounts:



Rule 20.4 is applicable if the above emissions increases involve the same or different pollutants than the one or ones for which the existing source exceeds the limits of (i) above, (e.g., If the NAAQS is exceeded for both ozone and particulates, and the source already emits over 50 tons per year of organic compounds, Rule 20.4 is applicable if a modification would result in emissions increase of 25 tons or more per year of particulates).



4. Rule 20.5, Standards for Power Plants, applies to all new power plants, and modifications to existing power plants for which a Notice of Intention or Application for Certification has been accepted by the California Energy Commission.





5. Rule 20.6, Standards for Permit to Operate - Air Quality Analysis, is applicable to new or modified stationary sources for which Authorities to Construct were issued.





6. Rule 20.7, Standards for Authority to Construct - Protection of Class I Areas, is applicable to a new major source or a major modification as defined in Section (b) of this rule, or a non-major modification to a major source that is located within 6.2 miles (10 kilometers) of a region designated by the responsible federal, state or local governmental agency as a Class I area requiring special protection, if the new source or modification would increase ambient pollutant concentration within any Class I area in the District or adjoining Districts by one microgram per cubic meter (24-hour average) or more of a pollutant other than a pollutant for which the San Diego Air Basin is designated as a non-attainment, under Section 107(d)(1) of the Clean Air Act.





7. If any applicability provision of Subsections (a)(1) through (a)(6) is determined to be inconsistent with the requirements of Rules 20.1, 20.2, 20.3, 20.4, 20.5, 20.6 and 20.7, the requirements of such rules shall prevail.

(b) DEFINITIONS

For the purposes of Rules 20.1 through 20.8 and 26.0 through 26.10, the following apply:

1. "Actual Emission Rate" means that level of emissions calculated pursuant to Rule 20.1(c)(1).





2. "Actual Emission Reduction" means an emission reduction as calculated pursuant to Rule 20.1(c)(3), achieved at the stationary source in excess of those reductions required by measures in the State Implementation Plan (SIP) or otherwise accounted for in the SIP or approved by the District for inclusion in the SIP, or required by federal, state and District laws, rules, regulations, or required by orders of the District, the California Air Resources Board, or the Environmental Protection Agency, or that have been placed in emission bank pursuant to these Rules and Regulations. To qualify as an actual emission reduction, the emission reduction must be in excess of the reductions already achieved by, or achievable by, the stationary source using Reasonably Available Control Technology (RACT) and must be permanent, quantifiable, and federally enforceable. All actual emission reductions shall be enforceable by conditions in the Authority to Construct and Permit to Operate.





3. "Air Quality Increment" means the maximum allowable increase in pollutant concentration beyond baseline air quality, as established in the Clean Air Act Section 163(b) for areas designated as Class I and Class II as follows:









An air quality increment applies only in an area that is designated as attainment of the national ambient air quality standards, or is unclassified, pursuant to Section 107(d)(1)(D) or (E) of the federal Clean Air Act for the above specified pollutant(s). All minor and area source growth (including motor vehicles) after the baseline date, and the contribution of major sources and major modifications constructed since January 6, 1975, shall count against the applicable air quality increment.



4. "Banking" means a regulatory system that recognizes and reserves emission reductions achieved by any person beyond reductions accounted for in the State Implementation Plan, or required by laws, rules, and regulations.





5. "Baseline Air Quality" means the ambient concentration level reflecting actual air quality in a baseline area as monitored or modeled as of the existing baseline date minus any contribution attributable to emissions from major stationary sources and major modifications (as defined in 40 CFR 52.21 as it existed on 8/7/80) constructed since January 6, 1975.





6. "Baseline Area" means the intrastate area and every part thereof, designated as attainment or unclassifiable under Section 107(d)(1)(D) or (E) of the federal Clean Air Act in which a stationary source establishing a baseline date would construct, or would have an impact of 1 µg/m3 (annual average) or 5 µg/m3 (24-hour average), of the pollutant for which the baseline date is established, on any adjoining Section 107(d)(1)(D) or (E) area.





7. "Baseline Date" means the date the first complete application for an Authority to Construct is received after the effective date of this paragraph for a new or modified stationary source to be constructed in a baseline area which would result in an emissions increase of more than the emission threshold specified in Rule 20.3 for an air contaminant for which the area is designated as attainment of the national ambient air quality standard or unclassifiable, and for which an air quality increment has been established. However, any baseline date established by the Environmental Protection Agency pursuant to 40 CFR 52.21 for the San Diego Air Basin prior to adoption of this subsection shall remain in full force and effect. A baseline date is established for each pollutant for which air quality increments have been established.

8. "Best Available Control Technology" (BACT)means the maximum degree of air contaminant emission reduction which the Air Pollution Control Officer determines is achievable, on a case-by-case basis, taking into account technology which is demonstrated but not necessarily proven in field application.





9. "California Coastal Waters" means that area between the San Diego County coastline and a line starting at the intersection of a line joining:

and a line 33.7û W from the San Diego County line:

and ending at the California-Mexico border at the Pacific Ocean.

10. "Class I Area" means any area having air quality or air quality related values requiring special protection, and which has been designated Class I by a federal, state or local authority empowered to make such designation. Currently, only Agua Tibia is designated as Class I area within the District.





11. "Class II Area" means an area identified pursuant to Section 107(d)(1) (D) or (E) of the federal Clean Air Act, and which is not established as Class I area. Currently, the entire San Diego County with the exception of Agua Tibia is a Class II area.





12. "Cogeneration" means the sequential use of energy for the production of electrical and useful thermal energy. The sequence can be thermal use followed by power production or the reverse, subject to the following standards:





A. At least 5 percent of the cogeneration project's total annual energy output shall be in the form of useful thermal energy.



B. Where useful thermal energy follows power production, the useful annual power output plus one half the useful annual thermal energy output equals not less than 42.5 percent of any natural gas and/or oil energy input.



13. "Control Strategy" means a combination of measures designed to reduce air contaminant emissions.





14. "Contemporaneous" means:





A. For the purpose of determining the applicability of Rules 20.3 and 20.4, the increase in actual emission rate due to new or modified units at the stationary source or an actual emission reduction due to new or modified units at the stationary source occurring within five years preceding the receipt of the complete application for the new or modified stationary source under evaluation; or



B. For the purpose of determining applicability of Rule 20.2, any increase in actual emission rate due to new or modified units at the stationary source occurring since July 5, 1979, and any actual emission reduction occurring at a unit constructed since July 5, 1979.



15. "Cumulative Increase" means the sum of the increase (excluding actual emission reduction) in the actual emission rate of a given pollutant from new or modified stationary source in the current application and any other increases in the actual emission rate of the pollutant at the stationary source that are contemporaneous with the particular change subject to the application. The cumulative increase shall be calculated pursuant to Rule 20.1(c)(2).





16. "Emissions Increase" means the net increase in emissions as calculated pursuant to Rule 20.1(c)(4) of any given pollutant from a new or modified stationary source. This is the sum of the cumulative increase and actual emission reductions at the stationary source.





17. "District ERC" means an ERC owned by the District pursuant to these rules and regulations.





18. "ERC" means an emission reduction credit granted by the District and recorded in the District registry as a result of an application pursuant to these rules and regulations.





19. "Federal Land Manager" means the secretary of the department with authority over the specified federal lands.





20. "Federally Enforceable" means all limitations and conditions which are enforceable by the Administrator of the U.S. Environmental Protection Agency (EPA) including those requirements developed pursuant to 40 CFR Parts 60 and 61, those requirements within the applicable State Implementation Plan, and any permit conditions established pursuant to permits issued by EPA or an Authority to Construct issued in accordance with an EPA approved version of these Rules and Regulations.





21. "Fugitive Emissions" means those quantifiable emissions which could not reasonably pass through a stack, chimney, flue, or other functionally equivalent opening.

22. "Lowest Achievable Emission Rate" (LAER) means for any source that rate of emission which reflects the more stringent of the following:





(i) The most stringent emission limitation which is contained in the implementation plan of any State for such class or category of source, unless the owner or operator of the proposed source demonstrates to the satisfaction of the Air Pollution Control Officer that such limitations are not achievable, or



(ii) The lowest emission level which is achieved in practice by such class or category of source.



In no event shall application of LAER result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 CFR Parts 60 (New Source Performance Standards) and 61 (National Emission Standards for Hazardous Pollutants).



23. "Major Modification" means any physical change in or change in the method of operation of a major source that would increase emissions equal to or greater than any of the following rates:

24. "Major Source" means any stationary source for which the actual emission rate is equal to or greater than 40 tons per year of particulate matter, sulfur oxides, nitrogen oxides, organic compounds, lead compounds including elemental lead, asbestos, beryllium, mercury, vinyl chloride, fluorides, sulfuric acid mist, hydrogen sulfide (H2S), total reduced sulfur (including H2S), reduced sulfur compounds (including H2S but excluding oxides of sulfur); or 100 tons per year of carbon monoxide.





25. "Modeling" means estimates of ambient air concentrations of pollutants based on applicable air quality models, data bases and other requirements in accordance with the "Guideline on Air Quality Models", (OAQPS 1.2-080, April, 1978, or as revised). Where an air quality impact model specified in the "Guideline on Air Quality Models" is inappropriate, the model may be modified or another model substituted provided that written approval from the Administrator of the Environmental Protection Agency is obtained, and such substitution is noticed when the application is submitted for public comment in accordance with Rule 20.3(e)(5)(iii). Methods such as those outlined in the "Workbook for the Comparison of Air Quality Models", April, 1977 (or as revised), shall be used to determine the comparability of air quality models. For the purposes of modeling, stack heights beyond what is required by good engineering practices shall not be allowed. This requirement should not be perceived to be a limit on the actual constructed height of a stack.





26. "Modification" means any physical change in a stationary source, or change in the method of operation thereof, including the aggregate of changes to all units at the source occurring in the period that an applicable Authority to Construct for the modification is in effect, which would result in an emissions increase of any air pollutant currently emitted or which results in the emissions of air contaminants not previously emitted except that:





(i) Repair or identical replacement of a non-major source, or routine maintenance of any source shall not be considered physical changes, and



(ii) The following changes shall not be considered a change in the method of operation provided that such changes are not contrary to any permit conditions:



A. An increase in production rate and/or an increase in hours of operation.



B. Use of an alternate raw material provided the individual units of the stationary source can accommodate such alternative raw material without resulting in an emission increase.



27. "Organic Compound" means any compound containing at least one atom of carbon, except: methane, carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, ammonium carbonate, methylene chloride, 1,1,1-trichloroethane, trichlorofluoromethane (CFC-11), dichlorodifluoromethane (CFC-12), chlorodifluoromethane (CFC-22), trifluoromethane (CFC-23), trichlorotrifluoroethane (CFC-113), dichlorotetrafluoroethane (CFC-114), and chloropentafluoroethane (CFC-115).





28. "Permanent Emission Reductions" means emission reductions resulting from a lower level of emissions from a source where the Air Pollution Control Officer will have the legal right to require the source to maintain such lower level of emissions indefinitely through permit conditions or other enforceable means.





29. "Quantifiable Emissions" means emissions which are (1) determined by field and/or laboratory tests of the source itself or a similar source, or (2) determined by established emission factors which are applicable to the emission source being evaluated.





30. "RACT" means reasonably available control technology. It reflects the lowest emission limit that a particular source is capable of meeting by the application of control technology that is reasonably available, considering technological and economic feasibility.





31. "Real Emission Reductions" means emission reductions which the Air Pollution Control Officer determines will not likely be replaced by emission increases within the District.





32. "Reasonable Further Progress" (RFP) means annual incremental reductions in emissions of the applicable air pollutant which are sufficient in the judgement of the Air Pollution Control Officer, to provide for attainment of the applicable National Ambient Air Quality Standard by the date required by law.





33. "Resource Recovery Project" means a project which would convert liquid or solid waste in such a manner so as to produce energy as a by-product.





34. "Secondary Emissions" means emissions which would occur as a result of the construction or operation of a major source or major modification, but do not come from the major source or major modification itself. For the purpose of this rule, secondary emissions must be specific, well defined, quantifiable, and impact the same general areas as the stationary source or modification which causes the secondary emissions. Secondary emissions may include, but are not limited to:





(i) Emissions from ships or trains coming to or from the new or modified stationary source; and

(ii) Emissions from any offsite support facility which would not otherwise be constructed or increase its emissions as a result of the construction of operation of the major source or major modification.

The emissions from motor vehicles, as defined in Section 415 of the Vehicle Code, shall not be considered secondary emissions.



35. "SIP Control Measures" means those emission control measures approved by the Air Pollution Control Board for inclusion in the State Implementation Plan (SIP) or contained in the SIP approved by the EPA.

For the purposes of Rule 20.1(d) and Rules 26.0 through 26.10, emission control measures in the SIP not included in the calculation used to show attainment or maintenance of a federal air quality standard are not SIP control measures.



36. "Stationary Source" means a unit or an aggregation of units of non-vehicular air contaminant emitting articles, machines, equipment or other contrivances, all of which are located on one property or adjoining properties under the same ownership or entitlement to use and operate, and all of which are determined by the Air Pollution Control Officer to be related to one another through a similar product, raw material or function. This includes unit or aggregation of units in the California Coastal Waters off San Diego County.





37. "Unit" means an identifiable piece of pollutant emitting equipment or any operation that produces and/or emits air pollutants.

(c) EMISSION CALCULATIONS

1. Actual Emission Rate:





(i) The maximum emitting capacity of a new stationary source or modification shall be used to determine the actual emission rate from the new source or modification unless the applicant, as a condition to receiving authority to construct and operate such new source or modification, agrees to federally enforceable limitations on the operations of the new source or modification, in which event the limitations shall be used to establish the emissions from the new source or modification.



(ii) The actual emission rate for an existing stationary source shall be based on the actual operating conditions of the existing source averaged over the two consecutive years immediately preceding the date of application, or such other period as may be deemed more representative of normal source operation by the Air Pollution Con-trol Officer provided such period is not less than two consecutive years unless the Air Pollution Control Officer determines a shorter period is more representative of emis-sions of the source and where that shorter period is within two years immediately preceding the receipt of the application. The actual emissions from the existing source as determined hereinabove shall be reduced to reflect emission reductions from applicable future rules, regulations and measures contained in the approved State Implementation Plan (SIP), or applicable measures approved by the Air Pollution Control Board for inclusion in the SIP. If violations of laws, rules, regulations, permit conditions, or orders of the District, the California Air Resources Board, or the Federal Environmental Protection Agency occurred during the period used to determine the operating conditions, the excess emissions during the violation shall not be considered.



(iii) Any and all emissions resulting from the proposed stationary source including fugitive emissions but excluding secondary emissions shall be added in determining the actual emission rate.



(iv) In calculating the actual emission rate for the electrical generating portion of a resource recovery project or a cogeneration technology project when determining the applicability of Rule 20.4, the Air Pollution Control Officer shall include the incremental emissions benefit derived from the project in comparison to the emissions that would be produced by an existing hydrocarbon combustion-based electric generation system in the absence of the project. The procedure used to determine the incremental emissions benefit shall be the same as that developed to satisfy the requirements of Section 41605 of the State Health and Safety Code. The Air Pollution Control Officer shall also include all emissions offsets that are provided by the project applicant in determining the net increase in emissions from the project. Such offsets shall be provided consistent with Rule 20.1. The provisions of this subsection shall not apply if the project would (1) be considered a "Major Stationary Source" or "Major Modifi-cation" pursuant to the applicable rules and regulations of the Federal Environmental Protection Agency at 40 CFR 51.24 and 40 CFR 51.18 (August 7, 1980) or (2) cause or contribute to the violation of any National Ambient Air Quality Standard as determined by means of an air quality analysis made pursuant to Rule 20.3.



2. Cumulative Increase:





(i) Determine the actual emission rates, which are attributable to the proposed new or modified unit in the application being evaluated.



(ii) Determine the actual emission rates for units which are not being physically modified but which, upon determination of the Air Pollution Control Officer, will have emission increases as a direct result of the construction and operation of the proposed new or modified stationary source. The actual emission rate in this case shall not be based on the maximum emitting capacity of a unit, but shall be based on the emitting capacity that is necessary to handle increases due to proposed new or modified stationary source.



(iii) Determine the actual emission rates for each unit at the stationary source, not addressed in (i) or (ii) above, which is constructed or modified contemporaneous to the application being evaluated.



(iv) Total the actual emission rates as determined in (i), (ii), and (iii) of this subsection.



(v) Cumulative increase from a modification to an existing stationary source shall be determined by comparing the yearly profiles of actual emission rates for that portion of the existing source comprised of units described in (i), (ii), and (iii) above to the yearly profiles of actual emission rates determined by (iv) above. A daily cumulative increase occurs when any part of the profile for a modified stationary source exceeds the profile for the existing stationary source.



Yearly emissions profiles for an existing or proposed new or modified stationary source shall be constructed by plotting the actual emission rate of the stationary source for each day consistent with other provisions of this rule. A separate profile shall be constructed for each pollutant.



In cases where a daily emissions increase is not required to be calculated the cumulative increase shall be determined on an annual basis.



(vi) Cumulative increase from a new stationary source equals the actual emission rate determined by (i) above.



3. Actual Emission Reductions:





(i) Determine the decrease in actual emission rate for any unit at the stationary source to be shutdown, curtailed or retrofitted with controls according to the application being evaluated. Such decrease must meet the requirements of Rule 20.1(b)(2) to qualify as an actual emission reduction.



(ii) Determine the decrease in actual emission rate for any unit at the stationary source, which was shutdown, contemporaneous to the application being evaluated. Such decrease must meet the requirements of Rule 20.1(b)(2) to qualify as an actual emission reduction.



4. Emissions Increase:





(i) Determine the cumulative increase at the stationary source using the emission calculation procedures of Rule 20.1(c)(2).



(ii) Determine all actual emission reductions at the stationary source using the emission calculation procedures of Rule 20.1(c)(3).



(iii) The daily emissions increase for a new or modified stationary source is the difference between the cumulative increase and actual emission reductions, and shall be determined using yearly emissions profiles. In cases where a daily emissions increase is not required, the emissions increase equals the amount by which the sum of the cumulative increase and all actual emission reductions at the stationary source exceeds zero.

(d) EMISSION OFFSETS

1. Emission offsets required by Rules 20.4 and 20.5 shall be actual emission reductions and at least 1.2 times the emission increase of the same pollutant after the appli-cation of lowest achievable emission rate technology, and as much as necessary to demon-strate consistency with Reasonable Further Progress and provide a net air quality benefit. The amount of offsets required will increase as distance is increased between the new or modified source and the source providing the offsets. Modeling consistent with Rule 20.3 may be required by the Air Pollution Control Officer to determine the offset ratio.





2. Emission reductions resulting from SIP Control Measures or otherwise accounted for in the SIP in the calculation used to show attainment or maintenance of a federal air quality standard, or required by adopted federal, state, or district laws, rules, regulations, permits or orders, shall not be allowed as emission offsets, except as is provided in Rules 20.1(e)(3) and 26.9.





3. If an applicant for a resource recovery project using municipal waste demonstrates to the satisfaction of the Air Pollution Control Officer that the existing municipal waste disposal practices for disposing of such waste would result in greater vehicular and non-vehicular emissions than those which would occur as a result of the resource recovery project, when both are in compliance with all applicable rules and regulations, then the difference in emissions between the method and the project may be used as an offset for emissions from the resource recovery project. The difference in emissions shall be that which would exist at the time the resource recovery project is placed into full operation or 180 days after the project is placed into operation for the first time, whichever is sooner.





4. The Air Pollution Control Officer shall not allow emission reductions or Class A ERCs to be used as offsets to comply with the requirements of Rules 20.4, 20.5, 20.8 and 26.8 unless the following requirements, are met:





(i) Emission reductions shall be incorporated into a permit condition enforceable by the Air Pollution Control District and federally enforceable for the useful life of the new stationary source or modification and/or shall be the result of the shutdown of previously permitted stationary sources where the permits for such sources are retired at the time of startup of the new or modified source. Where the new or modified stationary source is a replacement for a stationary source that is being shutdown at the same location in order to provide offsets, the Air Pollution Control Officer may allow up to 180 days for shakedown and testing of the new or modified source before any existing permits are retired, provided that the simultaneous operation of the new of modified source and the existing source does not cause or contribute to a violation of any national ambient air quality standard. The offsets shall be submitted to the U.S. Environmental Protection Agency as a SIP revision if necessary to make the offsets federally enforceable.



(ii) Only emission reductions below a stationary source's actual emission rates or allowable emissions whichever is more restrictive shall be eligible for credit as emission offsets. Offsets for non-attainment pollutants shall not include reductions which would have occurred had RACT been applied.



(iii) Emission reductions shall be in effect, enforceable by the Air Pollution Control District and federally enforceable at the time of startup of the new or modified source, except as provided in Subsection (d)(4)(i) above.



(iv) Emission reductions shall be required to be made on a pounds per day and tons per year basis, or equally stringent basis.



(v) Emission reductions shall meet the same criteria as are contained in Rule 26.0 for classification of banked reductions as Class A reductions.



(vi) The emission offsets will not result in a net increase in the emissions of a pollutant listed as hazardous by the Environmental Protection Agency pursuant to Section 112 of the federal Clean Air Act, 42 U.S ¤7412.



5. When emission offsets are required for a new or modified cogeneration project, a project using refuse-derived or biomass-derived fuels for energy generation, or a resource recovery project using municipal waste, and the applicant for such project demonstrates to the satisfaction of the Air Pollution Control Officer that it has made its best efforts to obtain offsets and that such efforts were unsuccessful, offsets shall be provided from District ERCs. In the event sufficient offsets cannot be obtained from District ERCs, the Air Pollution Control Officer shall report to the Air Pollution Control Board prior to denying an application for Authority to Construct. The report may include recommendations for revising the SIP, provided that:





(i) The applicant establishes by modeling, which meets the requirements of Rule 20.3, to the satisfaction of the Air Pollution Control Officer, that the emissions from the source will not cause a violation of or will not interfere with the attainment or maintenance of any national ambient air quality standard, and



(ii) The applicant certifies that it has made its best efforts to obtain sufficient offsets pursuant to the requirements of this Regulation and that such efforts have been unsuccessful as of the date the complete application was filed, and



(iii) The applicant uses lowest achievable emission rate technology.



6. Notwithstanding the provisions of Subsection (c)(1) through (c)(5) of this rule, no emission reduction or Class A ERC that was created or approved due to the removal from service or curtailment in use of equipment may be used as an emission offset to satisfy the requirements of Rule 20.1 through 20.8 unless such use is consistent with the federal requirements regarding emission reduction credits and emission offset eligibility specified in 40 CFR 51.18(j) as it exists on July 16, 1985.

(e) EXEMPTIONS

1. The Air Pollution Control Officer shall exempt from the requirements of Rules 20.2, 20.3, 20.4, 20.5, 20.6 and 20.7:





(i) Annual renewal of permits or transfer of ownership as specified in Regulation II herein unless such applications include modifications resulting in an increase of contaminant emissions.



(ii) Any stationary source which:



(A) Is a continuing operation, without modification, of a stationary source that was previously exempt from the permit provisions of these rules and regulations and a Permit to Operate is required solely because of a change in permit exemptions stated in Rule 11.

(B) Is portable abrasive blasting equipment, for which the State Air Resources Board has established standards pursuant to Sections 41900 and 41905 of the Health and Safety Code.

(C) Is emergency electrical generating equipment used less than 100 hours per year for maintenance purposes only. Operation for other than maintenance purposes shall be limited to actual interruptions of power from the serving utility. This exemption shall not apply if the emergency electrical generating equipment would be considered a "Major Stationary Source" or "Major Modification" pursuant to the applicable rules and regulations of the Federal Environmental Protection Agency.



2. The Air Pollution Control Officer shall exempt the following stationary sources from the requirements of Rules 20.2, 20.4(b)(2), (b)(5) and (b)(7), 20.5, 20.6 and 20.7, provided that the applicant demonstrates by modeling and in accordance with Rule 20.3 that these sources do not impact a Class I area or any other area where any applicable air quality increment is known to be violated.





(i) A new stationary source or modification of an existing stationary source utilizing unique and innovative control technology which will result in a significantly lower emission rate from the stationary source than would have occurred with the use of previously accepted LAER, and which will likely serve as a model for technology, to be applied to similar stationary sources within the State. In order for a stationary source to be exempted under this paragraph, (1) the applicant must obtain the written concurrence of the California Air Resources Board and (2) the Air Pollution Control Officer must determine, by means of an air quality analysis made pursuant to Rule 20.3, that the source or modification will not cause or contribute to a violation of any national ambient air quality standard. This exemption shall apply only to pollutants controlled by innovative control technology.



(ii) A new stationary source or modification of an existing stationary source that represents a significant advance in the development of a technology that appears to offer extraordinary environmental or public health benefits or other benefits of overriding importance to the public health or welfare. In order for a stationary source to be exempted under this paragraph, (1) the applicant must obtain the written concurrence of the California Air Resources Board and (2) the Air Pollution Control Officer must determine, by means of air quality analysis pursuant to Rule 20.3, that the new source or modification will not cause or contribute to a violation of any national ambient air quality standard.



(iii) Any modification of a stationary source which is exclusively a fuel conversion from gaseous fuels to fuel oils because of demonstrable shortages of gaseous fuels provided the related modifications use LAER, the applicant has made its best efforts to obtain all the necessary emission offsets and that such efforts were unsuccessful, the applicant has secured all available emission offsets, the applicant will continue to seek the necessary emissions offsets and apply them when they become available, and the modifications will not cause or contribute to a violation of any national ambient air quality standard.



When a new or modified stationary source qualifies for the exemptions described herein and that source emits more than one air contaminant, the above exemptions shall only apply for those air contaminant(s) for which the source fulfills the requirements of Subsections 20.1(e)(2)(i), (ii) or (iii).



3. The Air Pollution Control Officer shall exempt the stationary sources specified in Subsections 20.1(e)(2)(i), (ii) and (iii) from the emission offset requirements of Rule 20.4(b)(4) only if the District has prepared revisions to the State Implementation Plan which contain emission reductions necessary to mitigate the air quality impact of the proposed project, so that federal ambient air quality standards shall be achieved and maintained and reasonable further progress made toward attainment.

(f) OTHER REQUIREMENTS

1. Prior to an evaluation under Rules 20.1 through 20.7, an application for Authority to Construct for a new or modified stationary source must show compliance with all other applicable air pollution rules and regulations.





2. The Air Pollution Control Officer shall prepare and present quarterly to the Air Pollution Control Board reports listing all Authorities to Construct and Permits to Operate issued and denied under Rules 20.2, 20.3, 20.6 and 20.7. The report shall list the name of the applicant, the nature of the project, the type of control permitted or denied, and the types and amounts of emissions involved.





3. For the purposes of Rules 20.1, 20.2, 20.3, 20.4, 20.5, 20.6 and 20.7, all references to the National Ambient Air Quality Standards shall be interpreted to include State Ambient Air Quality Standards. This subsection shall not be included as part of any revision to the San Diego County Air Pollution Control District's portion of the State Implementation Plan.





4. The Air Pollution Control Officer shall track air quality increment consumption in accordance with the procedures established by the Environmental Protection Agency.