YSAQMD RULE 3.4 NEW SOURCE REVIEW                               
LAST REVISED 02/23/94
                               
                               RULE 3.4  NEW SOURCE REVIEW

                                 ADOPTED September 22, 1993
                                 REVISED February 23, 1994

                                           INDEX

           100  GENERAL
                      101  PURPOSE
                      102  APPLICABILITY
                      110  EXEMPTION, EMERGENCY ELECTRICAL GENERATING 
                           EQUIPMENT
                      111  EXEMPTION, NOTIFICATION REQUIREMENTS
                      112  EXEMPTION, REPLACEMENT EQUIPMENT
                      113  EXEMPTION, RULE COMPLIANCE

           200  DEFINITIONS
                      201  ACTUAL EMISSIONS
                      202  ACTUAL EMISSION REDUCTIONS
                      203  ACTUAL INTERRUPTIONS OF ELECTRICAL POWER
                      204  ACTUAL OPERATING DAYS
                      205  AFFECTED POLLUTANTS
                      206  AMBIENT AIR QUALITY STANDARDS
                      207  BEST AVAILABLE CONTROL TECHNOLOGY
                      208  CARGO CARRIERS
                      209  CEQA
                      210  COMPLETE APPLICATION
                      211  CONTIGUOUS PROPERTY
                      212  COST-EFFECTIVE
                      213  EMISSIONS LIMITATION
                      214  ELECTRICAL POWER PLANT
                      215  EMISSION DECREASE
                      216  EMISSIONS UNIT
                      217  FUGITIVE EMISSIONS
                      218  HALOGENATED HYDROCARBONS
                      219  HISTORIC ACTUAL EMISSIONS
                      220  HISTORIC POTENTIAL EMISSIONS
                      221  MAJOR STATIONARY SOURCE
                      222  MAJOR MODIFICATION
                      223  MODIFICATION
                      224  NON-ATTAINMENT POLLUTANT
                      225  PM10
                      226  PORTABLE EQUIPMENT
                      227  POTENTIAL TO EMIT
                      228  PRECURSOR
                      229  PROPOSED EMISSIONS
                      230  QUARTERLY
                      231  QUARTERLY EMISSION LIMITATION
                      232  REACTIVE ORGANIC COMPOUND
                      233  RECONSTRUCTED SOURCE
                      234  REPLACEMENT EQUIPMENT
                      235  STATIONARY SOURCE

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

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

           500  MONITORING AND RECORDS
                      501  RECORDS
           

           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 emissions units
                           and    all   modifications   to    existing
                           stationary   sources  and  emissions  units
                           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.

                      110  EXEMPTION,     EMERGENCY    ELECTRICAL
                           GENERATING   EQUIPMENT:     The    Air
                           Pollution Control Officer shall exempt
                           an  application  from the requirements
                           of  Sections  302,  and  303,  if  the
                           subject emissions unit  would  provide
                           emergency  electrical power or if  the
                           emissions unit would provide emergency
                           water pumping  for  flood  control  or
                           emergency  fire  fighting and is not a
                           major  source  or major  modification,
                           provided the requirements  of Sections
                           110.1   and   110.2   are   met.  This
                           exemption shall not apply to emissions
                           units   supplying   power  to  serving
                           utility for distribution on the grid.

                           110.1 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

                           110.2 Operation   for    other    than
                                 maintenance  purposes  shall  be
                                 limited  to actual interruptions
                                 of  electrical   power   by  the
                                 serving utility.


                      111  EXEMPTION - NOTIFICATION REQUIREMENTS:
                           The requirements of Sections 403, 404,
                           405,    and    406.2    relating    to
                           notification,  publication, and public
                           inspection  of Preliminary  Decisions;
                           and  notification,   publication,  and
                           public  inspection  of  Final   Action
                           shall not apply if the application  is
                           for   a  new  or  modified  stationary
                           source  or  emissions unit which has a
                           potential to emit, calculated pursuant
                           to  Sections  413,  414,  or  415,  as
                           applicable, of  less than  9000 pounds
                           per quarter of nitrogen  oxides,  less
                           than   9000   pounds  per  quarter  of
                           reactive organic  compounds, less than
                           100 pounds per day  of  sulfur oxides,
                           less than 80 pounds per day  of  PM10,
                           and   less   than  49,500  pounds  per
                           quarter of carbon monoxide.

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

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

           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,   adjusted  and  certified
                           pursuant   to   Rule   3.5,   EMISSION
                           REDUCTION CREDITS.

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

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

                      205  AFFECTED  POLLUTANTS: Reactive organic
                           compounds   (ROC),   nitrogen   oxides
                           (NOx), sulfur  oxides (SOx), PM10, and
                           carbon monoxide (CO).
                      206  AMBIENT AIR QUALITY  STANDARDS:  State
                           and   federal   ambient   air  quality
                           standards   for   the   purposes    of
                           submittal   to  the  US  Environmental
                           Protection Agency for inclusion in the
                           California State  Implementation Plan.
                           All references in this rule to Ambient
                           Air   Quality   Standards   shall   be
                           interpreted  as National  Ambient  Air
                           Quality Standards.

                      207  BEST  AVAILABLE   CONTROL   TECHNOLOGY
                           (BACT):

                           207.1 For any emissions unit  the most
                                 stringent of:
                                 a.   The most effective emission
                                      control   device,  emission
                                      limit, or technique, singly
                                      or  in  combination,  which
                                      has been  required  or used
                                      for  the  type of equipment
                                      comprising      such     an
                                      emissions  unit unless  the
                                      applicant  demonstrates  to
                                      the satisfaction of the Air
                                      Pollution  Control  Officer
                                      that    such    limitations
                                      required  on other  sources
                                      have not been  demonstrated
                                      to be achievable.
                                 b.   Any    alternative    basic
                                      equipment,  fuel,  process,
                                      emission control device  or
                                      technique,   singly  or  in
                                      combination, determined  to
                                      be technologically feasible
                                      and  cost-effective  by the
                                      Air    Pollution    Control
                                      Officer.
                                 c.   For  replacement  equipment
                                      only,      the     emission
                                      limitation that is based on
                                      the   maximum   degree   of
                                      reduction       achievable,
                                      taking     into     account
                                      environmental, energy,  and
                                      economic  impacts  by  each
                                      class    or   category   of
                                      source.

                           207.2 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  CEQA:  The   California  Environmental
                           Quality  Act, Public  Resources  Code,
                           Section 21000, et seq.
                      
                      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 and on payment
                           of  the  appropriate  fee pursuant  to
                           Rule  4.1  -  PERMIT FEES,  STATIONARY
                           SOURCES.

                      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;

                           213.2 Enforceable  on a  daily  basis;
                                 and

                           213.3 Established   pursuant    to   a
                                 permitting    action   occurring
                                 after February 13,  1980.

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

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

                      216  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.
                           Emissions unit shall  not  include the
                           open burning of agricultural biomass.

                      217  FUGITIVE  EMISSIONS:  Those  emissions
                           which   could    not  reasonably  pass
                           through  a  stack,  chimney,  vent  or
                           other functionally equivalent opening.

                      218  HALOGENATED  HYDROCARBONS:   For   the
                           purposes  of  this  rule,  halogenated
                           hydrocarbons are the following:

                           218.1  1,1,1-trichloroethane
                           218.2  methylene chloride
                           218.3  dichlorotrifluoroethane   (HCFC-
                                  123)
                           218.4  2-chloro-1,1,1,2-
                                  tetrafluoroethane (HCFC-124)
                           218.5  trichlorofluoromethane (CFC-11)
                           218.6  dichlorodifluoromethane (CFC-12)
                           218.7  trichlorotrifluoroethane   (CFC-
                                  113)
                           218.8  dichlorotetrafluoroethane  (CFC-
                                  114)
                           218.9  chloropentafluoroethane    (CFC-
                                  115)
                           218.10 pentafluoroethane (HFC-125)
                           218.11 1,1,2,2-tetrafluoroethane  (HFC-
                                  134)
                           218.12 tetrafluoroethane (HFC-134a)
                           218.13 dichlorofluoroethane (HCFC-141b)
                           218.14 chlorodifluoroethane (HCFC-142b)
                           218.15 1,1,1-trifluoroethane (HFC-143a)
                           218.16 chlorodifluoromethane (HCFC-22)
                           218.17 trifluoromethane (HFC-23)
                           218.18 1,1-difluoroethane (HFC-152a)
                           218.19 The  following  four  classes of
                                  perfluorocarbon compounds:
                                  a.   Cyclic,    branched,     of
                                       linear,          completely
                                       fluorinated alkanes.
                                  b.   Cyclic,    branched,     or
                                       linear,          completely
                                       fluorinated ethers, with no
                                       unsaturations.
                                  c.   Cyclic,    branched,     or
                                       linear,          completely
                                       fluorinated        tertiary
                                       amines,       with       no
                                       unsaturations.
                                  d.   Sulfur-containing
                                       perfluorocarbons   with  no
                                       unsaturations    and   with
                                       sulfur bonds only to carbon
                                       and fluorine.
                                  Perfluorocarbon   compounds shall  
                                  be  assumed  to   be absent  from  
                                  a  product or process       unless      
                                  a  manufacturer  or   facility
                                  operator   identifies   the specific 
                                  compounds  and the amounts   present   
                                  in  the product   or   process  and
                                  provides  a validated  test method 
                                  which can be used to quantify   the   
                                  identified compounds.

                      219  HISTORIC   ACTUAL  EMISSIONS:   Actual
                           emission reductions  for  the existing
                           emissions unit averaged over  the  two
                           year  period immediately preceding the
                           date of  application.  If the last two
                           years are unrepresentative  of  normal
                           source operations as determined by the
                           Air  Pollution  Control  Officer, then
                           two consecutive years of the last five
                           years  may  be used. If, at  any  time
                           during  the specified  period,  actual
                           emissions    exceeded    allowed    or
                           permitted emission levels, then actual
                           emissions  shall be reduced to reflect
                           emission  levels   that   would   have
                           occurred   if   the   unit   were   in
                           compliance    with    all   applicable
                           limitations and rules.  If  less  than
                           one year has passed since the date  of
                           issuance of the permit to operate then
                           the historic actual emissions shall be
                           zero.  If  less  than  two  years have
                           passed  since the date of issuance  of
                           the  permit   to   operate   then  the
                           historical  actual emissions shall  be
                           the actual emissions over the one year
                           period immediately  preceding the date
                           of application.

                      220  HISTORIC      POTENTIAL     EMISSIONS:
                           Emissions based  on  the  potential to
                           emit  of the emissions unit  prior  to
                           modification.   In   determining   the
                           potential  to  emit,  daily  emissions
                           limitations  shall be treated as  part
                           of an emissions  unit's design only if
                           the limitations are  representative of
                           normal operations, or, if the facility
                           has  provided  offsets  for   previous
                           permitting  actions.  If there are  no
                           enforceable  limiting  conditions,  an
                           emissions  unit's  potential  to  emit
                           shall   be  limited  to   the   unit's
                           historical actual emissions. For a new
                           emissions    unit    historic   actual
                           emissions are equal to zero.

                      221  MAJOR STATIONARY SOURCE:  A stationary
                           source whose potential to emit exceeds
                           50  tons per year nitrogen oxides,  50
                           tons  per  year  of  reactive  organic
                           compounds, 100 tons per year of carbon
                           monoxide  and  sulfur  oxides, 15 tons
                           per year of PM10, or levels  specified
                           in the Clean Air Act of 1990,  Section
                           112(a)(1).

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

                      223  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:

                           223.1 For an emissions unit:
                                 a.    Would  necessitate  a change    
                                       in   permit conditions;
                                 b.    Is  not  specifically limited 
                                       by  a  permit condition; or
                                 c.    Results     in     an increase 
                                       in emissions not   subject   
                                       to  a daily       emissions
                                       limitation.

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

                           224.3 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; or
                                 d.    The   addition  of  a continuous   
                                       emission monitoring system.

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

                      225  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).

                      226  PORTABLE EQUIPMENT: Equipment which is
                           periodically  relocated   and  is  not
                           operated more than 180 days at any one
                           location in the District within  a  12
                           month period.

                      227  POTENTIAL   TO   EMIT:   The   maximum
                           physical    and   operational   design
                           capacity to emit  a  pollutant  during
                           each calendar quarter. Limitations  on
                           the  physical  or  operational  design
                           capacity,  including emissions control
                           devices and  limitations  on  hours of
                           operation,  may be considered only  if
                           such limitations are incorporated into
                           the applicable  authority to construct
                           and permit to operate.

                      228  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       |
     |COMPOUNDS               |    (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 |
     ------------------------------------------------------------


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

                      230  QUARTERLY: Calendar quarters beginning
                           in January, April, July, and October.

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

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

                           231.2 Enforceable   on   a   quarterly
                                 basis; and

                           231.3 Established   pursuant    to   a
                                 permitting    action   occurring
                                 after February 13, 1980.

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

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

                      234  REPLACEMENT EQUIPMENT:  A  replacement
                           of   a  piece  of  equipment  with   a
                           structurally   equivalent   piece   of
                           equipment  which  has  a  potential to
                           emit less than or equal to  those from
                           the original piece of equipment.

                      235  STATIONARY   SOURCE:   Any   building,
                           structure, facility, or emissions unit
                           which  emits  or may emit any affected
                           pollutant directly  or  as  a fugitive
                           emission.

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

                           235.2 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.)

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

           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,
                           which   would   have  an  increase  in
                           emissions   and  proposed   emissions,
                           according to  procedures  specified in
                           Section  410, in excess of the  levels
                           specified    in   Section   301.1.   A
                           condition which  reflects  BACT  in  a
                           manner    consistent    with   testing
                           procedures, such as ppmv  NOx, g/liter
                           ROC,  or lbs/hr shall be contained  in
                           the latest  authority to construct and
                           permit to operate.

                           301.1 Pollutant                  lb/day
                                 Reactive  Organic Compounds  10
                                 Nitrogen Oxides              10
                                 PM10                         10
                                 Sulfur Oxides                10
                                 Carbon Monoxide             550

                      302  OFFSET REQUIREMENTS, GENERAL:

                           302.1 An   applicant   shall   provide
                                 offsets, except as  provided  in
                                 Section  304,  obtained pursuant
                                 to Rule 3.5, EMISSION  REDUCTION
                                 CREDITS  or  Rule  3.6, PRIORITY
                                 RESERVE,  for  new and  modified
                                 sources  where  the   cumulative
                                 emission   changes  of  reactive
                                 organic   compounds,    nitrogen
                                 oxides, sulfur oxides, PM10,  or
                                 carbon    monoxide    calculated
                                 pursuant to Sections 411  or 412
                                 exceed  the  level specified  in
                                 Section   302.1.a.    Sufficient
                                 offsets shall be provided,  from
                                 the same calendar quarter as the
                                 emissions,  to  offset  positive
                                 emissions  changes  of  reactive
                                 organic  compounds  and nitrogen
                                 oxides  (except  as provided  in
                                 Section     302.2)    calculated
                                 according     to      procedures
                                 specified    in   Section   414.
                                 Sufficient  offsets   shall   be
                                 provided, from the same calendar
                                 quarter  as  the  emissions,  to
                                 offset     positive    emissions
                                 changes   of  carbon   monoxide,
                                 sulfur    oxides,    and    PM10
                                 calculated      according     to
                                 procedures specified  in Section
                                 415. Emissions offsets  used  to
                                 mitigate    proposed   emissions
                                 increases shall  be  of the same
                                 pollutant    type   except    as
                                 provided for in Section 304.
                                 a.    Pollutant                  lb/day
                                       Reactive Organic Compounds   82
                                       Nitrogen Oxides              82
                                       Sulfur Oxides                82
                                       Carbon Monoxide             550
                                       PM10                         82

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

                           302.3 In  no  case  shall  halogenated
                                 hydrocarbons  be used as offsets
                                 for reactive organic compounds.

                      303  LOCATION OF OFFSETS AND OFFSET RATIOS:

                           303.1 Except  as provided  in  Section
                                 303.2,   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 Ratios                                  |
|----------------------------------------------------------------------------|
|Location of Offset    |Non-Attainment Pollutants | Other Affected Pollutants|
|----------------------|--------------------------|--------------------------|  
|Same Source           |      1.0 to 1.0          |         1.0 to 1.0       |
|----------------------|--------------------------|--------------------------|
|Within 15-Mile Radius |      1.2 to 1.0          |         1.1 to 1.0       |
|--------------------- |--------------------------|--------------------------|
|Greater than 15-Miles,|      2.0 to 1.0          |         1.2 to 1.0       |
|but within 50-Mile    |                          |                          |
|Radius and within     |                          |                          |
|District              |                          |                          |
|----------------------|--------------------------|------------------------- |
|Within 15-Mile Radius,|      1.3 to 1.0          |         1.2 to 1.0       |
|outside District, and |                          |                          |
|within Sacramento     |                          |                          |
|Valley Air Basin      |                          |                          |
|----------------------|--------------------------|------------------------- |
|Greater than 15-Mile  |      2.1 to 1.0          |         1.3 to 1.0       |
|Radius, but within 50-|                          |                          |
|Mile Radius, outside  |                          |                          |
|District, and within  |                          |                          |
|Sacramento Valley Air |                          |                          |
|Basin                 |                          |                          |
|----------------------|--------------------------|--------------------------|
|More than 50-Mile     |                          |                          |
|Radius and within     | Equal to or Greater than | Equal to or Greater than |     
|Sacramento            |         2.1 to 1.0       |        1.3 to 1.0        |
|Valley Air Basin      |                          |                          |                      
 ----------------------------------------------------------------------------
                           303.2 Offsets   which   are   obtained           
                                 pursuant to Sections 302 and 303           
                                 and   pursuant   to   permitting           
                                 actions in a district other than           
                                 that   in   which  the  proposed           
                                 source is located  may  be  used           
                                 only   if   the   Air  Pollution
                                 Control Officer has reviewed the
                                 permit conditions issued  by the
                                 other   district  in  which  the
                                 proposed  offsets  are  obtained
                                 and certifies that the impact of
                                 using   such  offsets  meet  the
                                 requirements  of  District Rules
                                 and Regulations.

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

                      305  AMBIENT AIR QUALITY  STANDARDS:  In no
                           case  shall emissions from the new  or
                           modified stationary source, prevent or
                           interfere   with   the  attainment  or
                           maintenance of any applicable  ambient
                           air   quality   standard,   except  as
                           provided  in  Section  302.2. The  Air
                           Pollution Control Officer  may require
                           the  use  of  an air quality model  to
                           estimate  the  effects  of  a  new  or
                           modified stationary  source. In making
                           this determination the  Air  Pollution
                           Control   Officer   shall   take  into
                           account  the  mitigation  of emissions
                           through  offsets obtained pursuant  to
                           this rule.

                      306  DENIAL - FAILURE  TO  MEET  STANDARDS:
                           The   Air  Pollution  Control  Officer
                           shall deny  any authority to construct
                           or  permit  to   operate  if  the  Air
                           Pollution Control  Officer  finds that
                           the  subject of the application  would
                           not  comply  with  the  standards  set
                           forth  in  District, state, or federal
                           rules or regulations.

                      307  CEQA APPLICABILITY:  All  proposed new
                           and  modified  sources  for  which  an
                           authority   to   construct   must   be
                           obtained  from  the  District shall be
                           reviewed   in  accordance   with   the
                           requirements of CEQA.

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

           400        ADMINISTRATIVE  REQUIREMENTS: The following
                      administrative  requirements   in  Sections
                      401-413   shall  apply  to  any  activities
                      regulated by  this  rule,  except  for  the
                      review  of  power plants over 50 megawatts.
                      Power plants  over  50  megawatts  shall be
                      subject   to  the  review  requirements  of
                      Section 416.

                      401  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
                           have agreed in  writing.  If  the  Air
                           Pollution  Control  Officer determines
                           that the application  is not complete,
                           the  applicant  shall be  notified  in
                           writing of the decision specifying the
                           information required.  Upon receipt of
                           any re-submittal of the application, a
                           new   30-day   period   to   determine
                           completeness shall begin. Completeness
                           of   an  application  or  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 and  on  the
                           CEQA-related     information     which
                           satisfies  the  requirements   of  the
                           District's  CEQA  Guidelines. The  Air
                           Pollution Control Officer  may, during
                           the  processing  of  the  application,
                           request   an   applicant  to  clarify,
                           amplify,   correct,    or    otherwise
                           supplement  the  information submitted
                           in the application.

                      402  AIR QUALITY MODELS:  All  air  quality
                           models  used for the purposes of  this
                           rule  shall  be  consistent  with  the
                           requirements   provided  in  the  most
                           recent edition of  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.

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

                           403.1 The   Air   Pollution    Control
                                 Officer  shall  transmit to  the
                                 California  Air Resources  Board
                                 and  the  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 404.

                      404  PUBLICATION AND PUBLIC COMMENT: Except
                           as provided in Section 111, within ten
                           calendar days following  a preliminary
                           decision  pursuant  to  Section   300,
                           Standards,   of  this  rule,  the  Air
                           Pollution   Control    Officer   shall
                           publish in at least one  newspaper  of
                           general  circulation in the District a
                           notice   stating    the    preliminary
                           decision of the Air Pollution  Control
                           Officer,   noting  how  the  pertinent
                           information   can   be  obtained,  and
                           inviting written public  comment for a
                           30-day  period following the  date  of
                           publication.

                      405  PUBLIC INSPECTION:  Except as provided
                           in  Section  111,  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  date   the  notice  of  the
                           preliminary  decision   is  published,
                           pursuant  to Section 404.  Information
                           submitted which contains trade secrets
                           shall be handled  in  accordance  with
                           Section   6254.7   of  the  California
                           Government Code and  relevant sections
                           of the California Administrative Code.
                           Further, all such information shall be
                           transmitted no later than  the date of
                           publication  to  the  California   Air
                           Resources    Board    and    the    US
                           Environmental     Protection    Agency
                           regional  office,  and  to  any  party
                           which requests such information.

                      406  AUTHORITY TO CONSTRUCT, FINAL ACTION:

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

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

                      407  REQUIREMENTS - AUTHORITY  TO CONSTRUCT
                           AND PERMIT TO OPERATE:

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

                           407.2 Emissions  Limitations:  All  of
                                 the     following      emissions
                                 limitations shall be included on
                                 the  authority to construct  and
                                 permit     to     operate,    if
                                 applicable.
                                 a.    The   authority    to
                                       construct  and permit to    
                                       operate   shall include      
                                       emission limitations  which
                                       reflect Best Available     
                                       Control Technology.  Such
                                       condition   shall  be
                                       expressed in a manner
                                       consistent  with testing   
                                       procedures, such  as  ppmv   
                                       NOx, g/liter    ROC,    or
                                       lbs/hr.
                                 b.    In     addition,    a quarterly   
                                       emissions limitation  for  each
                                       affected    pollutant for which 
                                       offsets are being provided
                                       pursuant  to  Section 302.1     
                                       shall    be  contained   in the
                                       authority to  construct  and 
                                       permit to operate.
                                 c.    A    daily   emission limitation  
                                       shall  be contained    in   the
                                       authority to construct  and permit
                                       to  operate  for  all affected   
                                       pollutants for which offsets are
                                       not   being  provided pursuant  to  
                                       Section 302.1.
                                 d.    Electrical      power plants shall   
                                       also contain  a  quarterly emissions  
                                       limitation for   operation of 
                                       increased power plant operation  
                                       needed  to compensate for reduced  
                                       operation at other power  plant(s)
                                       within  the  District due    to   
                                       emergency breakdown, and regularly   
                                       scheduled maintenance.

                           407.3 Offsets:
                                 a.    Except as provided in Section 
                                       407.3.b., the operation   of    
                                       any emissions  unit which provides      
                                       offsets shall  be subject  to
                                       enforceable    permit  conditions, 
                                       containing   specific emissions       
                                       and operational  limitations,       
                                       to ensure    that    the emission   
                                       reductions shall be provided  in
                                       accordance  with  the provisions   
                                       of  this rule     and    shall
                                       continue   for    the reasonably   
                                       expected life  of the proposed
                                       emissions unit.
                                 b.    Where the  source  of offsets     
                                       is not required to obtain an
                                       authority to construct or a 
                                       permit to  operate  pursuant
                                       to  Rule 3.1, GENERAL PERMIT  
                                       REQUIREMENTS, a written contract 
                                       or a  functional equivalent         
                                       as determined by the Air
                                       Pollution     Control Officer    
                                       shall   be required between  
                                       the applicant   and   the  
                                       owner  or operator of such  
                                       source,   which contract,    
                                       by   its terms,    shall    be
                                       enforceable   by  the Air 
                                       Pollution Control Officer.
                                 c.    Except as provided in Section     
                                       407.3.b., external offsets must
                                       be  made  enforceable either by 
                                       revision of an offsetting source's 
                                       authority to construct and  permit
                                       to   operate   or  by submittal  of  
                                       a  SIP revision to EPA prior to  the  
                                       operation of the  emissions  unit.
                                       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.
                                 d.    A  violation  of  the emission   
                                       limitation  provisions   of   any
                                       contract pursuant  to 407.3.b.  
                                       shall  be a violation   of   this
                                       rule      by      the applicant.
                                 e.    The  operation of any emissions  
                                       unit which causes offsets
                                       provided  by  another emissions 
                                       unit  shall be     subject     to
                                       enforceable    permit conditions,
                                       containing   specific  emissions         
                                       and operational   limits, to  ensure  
                                       that  the emission   reductions
                                       are      used      in  accordance  
                                       with  the provisions         of  
                                       District   rules  and shall  
                                       continue   for the reasonably 
                                       expected life  of the emissions unit.
                                 f.    Where   the   biomass that would   
                                       have otherwise been burned is   
                                       disposed  of  by means  such  as  
                                       soil incorporation  (including   
                                       but  not limited  to  disking, rolling 
                                       and chopping) and  field  flooding, the   
                                       grower shall enter into  a written
                                       agreement    or     a  memorandum 
                                       describing the      transaction,
                                       signed     by     the transferor,      
                                       that contains   a  requirement   not  
                                       to  burn  biomass generated  on a  
                                       pre-established  quantity of acreage.

                      408  ISSUANCE - PERMIT TO OPERATE: The  Air
                           Pollution  Control Officer shall issue
                           a permit to  operate  for an emissions
                           unit  subject  to the requirements  of
                           this rule if it is determined that any
                           offsets required  as a condition of an
                           authority to construct or amendment to
                           a permit to operate  will  commence no
                           later  than  the initial operation  of
                           the new or modified  source,  and that
                           the   offsets   shall   be  maintained
                           throughout the operation of the new or
                           modified    source   which   is    the
                           beneficiary of  the  offsets. Further,
                           the  Air  Pollution  Control   Officer
                           shall  determine  that  all conditions
                           specified   in   the   authority    to
                           construct  have  been complied with or
                           will  be complied with  by  the  dates
                           specified    on   the   authority   to
                           construct. Such  applicable conditions
                           shall be contained  in  the  permit to
                           operate.   Where  a  new  or  modified
                           stationary source  is,  in whole or in
                           part,  a  replacement for an  existing
                           stationary    source   on   the   same
                           property,  the Air  Pollution  Control
                           Officer may allow a maximum of 90 days
                           as a start-up  period for simultaneous
                           operation of the  existing  stationary
                           source   and   the   new   source   or
                           replacement.

                      409  REGULATIONS   IN   FORCE   GOVERN:  An
                           authority   to   construct  shall   be
                           granted  or  denied   based   on  Best
                           Available   Control   Technology   and
                           offset  requirements  of  Sections 301
                           and  302  in  force  on  the date  the
                           application  is  deemed  complete   as
                           defined  in  Section 210. In addition,
                           the  Air  Pollution   Control  Officer
                           shall deny an authority  to  construct
                           for  any  new  stationary  source   or
                           modification,  or any portion thereof,
                           unless:

                           409.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

                           409.2 The  owner  or  operator of  the
                                 proposed new or modified  source
                                 has  demonstrated that all major
                                 stationary   sources   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.

                      410  CALCULATION OF EMISSIONS  -  BACT: The
                           emissions change for a new or modified
                           emissions  unit  shall be the same  as
                           the  proposed emissions.  Calculations
                           shall be performed separately for each
                           emissions   unit   for  each  calendar
                           quarter.

                      411  CALCULATION  OF  EMISSIONS  -  OFFSETS
                           TRIGGER   FOR   ROC   AND   NOX:   The
                           cumulative  emissions  increases   for
                           each calendar quarter for a stationary
                           source   shall   be  the  sum  of  the
                           potentials to emit  for  all emissions
                           units  based  on  current  permits  to
                           operate  and  authorities to construct
                           where permits to operate have not been
                           issued  and  including   the   pending
                           application,  non-permitted  emissions
                           units,  fugitive  emissions,  and  all
                           actual  emissions reductions from  the
                           source which have been banked.

                      412  CALCULATION   OF  EMISSIONS  -  OFFSET
                           TRIGGERS FOR CO,  SOX AND PM10: Except
                           as  provided  in  Sections  412.1  and
                           412.2,   the   cumulative    emissions
                           increases  for  each  calendar quarter
                           for a stationary source  shall  be the
                           sum  of emissions from Sections 412.3,
                           412.4,  and  412.5  for  each calendar
                           quarter, expressed in terms  of pounds
                           per day.

                           412.1 An     application     for     a
                                 modification,   deemed  complete
                                 after September 22,  1993, to an
                                 emissions   unit  or  stationary
                                 source,  constructed   or  whose
                                 application  is  deemed complete
                                 prior to September 22, 1993, and
                                 which had provided  full offsets
                                 for  total suspended particulate
                                 matter emissions occurring after
                                 February  13,  1980  but  before
                                 September  22, 1993, those total
                                 suspended   particulate   matter
                                 emissions    shall     not    be
                                 recalculated as PM10.

                           412.2 Except  as  provided  in Section
                                 412.5,  any  emissions  increase
                                 represented  by an authority  to
                                 construct or permit  to  operate
                                 which  has been canceled or  has
                                 expired    and    any   emission
                                 reduction credits surrendered to
                                 the   District  shall   not   be
                                 included   in   the   cumulative
                                 emissions  increase  calculation
                                 pursuant to Section 411.

                           412.3 The  potential to emit  for  all
                                 emissions  units installed after
                                 February  13,   1980   based  on
                                 current  permits  to operate  or
                                 authorities  to construct  where
                                 permits to operate have not been
                                 issued,  including  the  pending
                                 application.

                           412.4 All emission  increases from the
                                 modification to  emissions units
                                 installed prior to  February 13,
                                 1980 and modified after February
                                 13,   1980   as  determined   by
                                 procedures specified  in Section
                                 411  or procedures specified  in
                                 this  Rule   at   the   time  of
                                 modification.

                           412.5 Emission    reduction    credits
                                 obtained  pursuant to Rule  3.5,
                                 EMISSION   REDUCTION    CREDITS,
                                 after  February  13,  1980  from
                                 emissions  units installed after
                                 February 13, 1980.

                      413  CALCULATION  OF EMISSIONS,  OFFSETS  -
                           GENERAL: The emissions  change  for  a
                           new  or  modified emissions unit shall
                           be calculated  by subtracting historic
                           potential  emissions   from   proposed
                           emissions.   Calculations   shall   be
                           performed    separately    for    each
                           pollutant  and each emissions unit for
                           each   calendar    quarter.   Negative
                           emissions changes shall  be  processed
                           under  procedures  specified  in  Rule
                           3.5, EMISSIONS REDUCTION CREDITS.

                      414  CALCULATION   OF   EMISSIONS,  OFFSETS
                           REQUIRED   FOR   ROC  AND   NOX:   The
                           cumulative   net  emissions   increase
                           pursuant   to  Section   413   for   a
                           stationary source  shall be the sum of
                           emissions from each  of  the following
                           for each calendar quarter expressed in
                           terms of pounds per quarter.
                           414.1 The  potential to emit  for  all
                                 permitted    and   non-permitted
                                 emissions units  installed after
                                 September  22,  1993   and   not
                                 previously   offset,   including
                                 associated  fugitive  emissions,
                                 based  on  current  permits   to
                                 operate,   or   authorities   to
                                 construct   where   permits   to
                                 operate  have  not  been issued,
                                 including       the      pending
                                 application.

                           414.2 All emission increases  from the
                                 modification  to  permitted  and
                                 non-permitted  emissions   units
                                 and   not   previously   offset,
                                 including   associated  fugitive
                                 emissions,   installed    before
                                 September  22, 1993 but modified
                                 after  September   22,  1993  as
                                 determined     by     procedures
                                 specified in Section 413.

                           Any emissions increase represented  by
                           an authority to construct or permit to
                           operate which has been canceled or has
                           expired  and  any  emission  reduction
                           credits  surrendered  to  the District
                           shall   not   be   included   in   the
                           cumulative      emissions     increase
                           calculation.

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

                           415.1 The  potential  to  emit for all
                                 permitted    and   non-permitted
                                 emissions units  installed after
                                 September  22,  1993   and   not
                                 previously   offset,   including
                                 associated  fugitive  emissions,
                                 based  on  current  permits   to
                                 operate    or   authorities   to
                                 construct   where   permits   to
                                 operate have  not  been  issued,
                                 including       the      pending
                                 application.

                           415.2 All emission increases  from the
                                 modification  of  all  permitted
                                 and    non-permitted   emissions
                                 units,   and    not   previously
                                 offset, and including associated
                                 fugitive  emissions,   installed
                                 before  September  22, 1993  but
                                 modified  after  September   22,
                                 1993 as determined by procedures
                                 specified in Section 413.

                           Any  emissions increase represented by
                           an authority to construct or permit to
                           operate which has been canceled or has
                           expired  and  any  emission  reduction
                           credits  surrendered  to  the District
                           shall   not   be   included   in   the
                           cumulative      emissions     increase
                           calculation.

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

                           416.1 Within 14 days of  receipt  of a
                                 Notice  of  Intention,  the  Air
                                 Pollution  Control Officer shall
                                 notify the Air  Resources  Board
                                 and    the   California   Energy
                                 Commission   of  the  District's
                                 intent  to  participate  in  the
                                 Notice of Intention  proceeding.
                                 If   the  District  chooses   to
                                 participate  in  the  Notice  of
                                 Intention  proceeding,  the  Air
                                 Pollution  Control Officer shall
                                 prepare and  submit  a report to
                                 the   California  Air  Resources
                                 Board and  the California Energy
                                 Commission    prior    to    the
                                 conclusion    of    the     non-
                                 adjudicatory  hearing  specified
                                 in   Section   25509.5   of  the
                                 California    Public   Resources
                                 Code. That report shall include,
                                 at a minimum:
                                 a.    A  preliminary specific   
                                       definition of Best Available
                                       Control    Technology for    
                                       the   proposed facility;
                                 b.    A  preliminary discussion 
                                       of whether there is substantial
                                       likelihood  that  the 
                                       requirements  of this rule  
                                       and  all  other District  
                                       regulations can  be satisfied  
                                       by the proposed facility; and
                                 c.    A preliminary list of conditions 
                                       which  the proposed   facility
                                       must meet in order to comply 
                                       with this rule or any  other
                                       applicable   district regulation.
                                       
                                 The  preliminary determinations 
                                 contained in the  report  shall   be  
                                 as specific as possible within
                                 the   constraints   of  the 
                                 information  contained   in the 
                                 Notice of Intention.

                           416.2 Upon  receipt  of an Application
                                 for Certification  for  a  power
                                 plant, the Air Pollution Control
                                 Officer    shall    conduct    a
                                 determination    of   compliance
                                 review. This determination shall
                                 consist of a review identical to
                                 that which would be performed if
                                 an application for  a  permit to
                                 construct had been received  for
                                 the    power   plant.   If   the
                                 information   contained  in  the
                                 Application  for   Certification
                                 does  not  meet the requirements
                                 of this rule,  the Air Pollution
                                 Control Officer shall, within 20
                                 calendar days of  receipt of the
                                 Application  for  Certification,
                                 so inform the California  Energy
                                 Commission,  and the Application
                                 for   Certification   shall   be
                                 considered     incomplete    and
                                 returned  to the  applicant  for
                                 resubmittal.

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

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


                           416.5 Within  180 days of accepting an
                                 Application for Certification as
                                 complete,   the   Air  Pollution
                                 Control  Officer  shall  make  a
                                 preliminary decision on:
                                 a.    Whether  the proposed power 
                                       plant meets the requirements  
                                       of this rule  and  all  other
                                       applicable   district 
                                       regulations; and
                                 b.    In   the   event   of 
                                       compliance,  what permit     
                                       conditions will be required
                                       including the  specific         
                                       Best Available     Control
                                       Technology requirements   and  
                                       a description of required   
                                       mitigation measures.

                                 The   preliminary   written decision    
                                 under   Section 416.5 shall be treated 
                                 as a preliminary decision  under
                                 Section  403  of this rule, and  shall 
                                 be finalized  by  the Air  Pollution  
                                 Control Officer  only  after  being
                                 subject   to   the   public notice      
                                 and     comment requirements   of  
                                 Sections 403   and   404.  The   Air
                                 Pollution  Control  Officer shall    
                                 not    issue     a  determination of 
                                 compliance unless  all requirements of
                                 this rule are met.

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

                           416.7 Any   applicant    receiving   a
                                 certificate from the  California
                                 Energy  Commission  pursuant  to
                                 this  section  and in compliance
                                 with  all  conditions   of   the
                                 certificate  shall  be  issued a
                                 permit  to  operate  by the  Air
                                 Pollution Control Officer.

           500        MONITORING AND RECORDS

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

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

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