How the SCAQMD’s Class III Permit Works

If you find un-permitted equipment at your facility, you have options. One of the most useful, and most overlooked, is the SCAQMD's Class III permit. Here's how it works.

The Class III permit

An air permit authorizes the holder to construct or operate a piece of equipment. The full SCAQMD permitting process often takes three to six months, sometimes more. A Class III permit gives you immediate permit coverage the moment you file the application and the processing fees with the SCAQMD. Given how long most SCAQMD processes take, that sounds too good to be true, but it's a valid and often-overlooked part of the agency's rules.

Rule 202 authorizes the Class III permit

Rule 202 is only 251 words long, but they carry real weight. The rule gives the applicant a temporary permit to operate (the Class III) for equipment that was modified or already operating without a permit. One big caveat: your coverage can be canceled at any time at the AQMD's discretion. In the SCAQMD, Rule 201 requires all equipment to have a permit before it is constructed or modified. However, the agency understands that there will be cases where an applicant doesn't follow this process, usually from an oversight or simple human error rather than anything dishonest. In this case, if a piece of equipment was installed without first getting a permit, then the equipment is arguably in non-compliance with Rules 201 and 203 and would continue to be in non-compliance until the permit is actually issued. Rule 202 was created to limit the time frame that a piece of equipment operates in non-compliance. Those simple 251 words functionally say that once a permit application is filed and the proper fees are paid, the application itself serves as a permit to operate the equipment under Rule 202 and, arguably, the period of non-compliance with Rule 203 ends. However, because the applicant did not initially follow Rule 201, a non-compliance risk for Rule 201 still exists, meaning the SCAQMD can issue a violation for Rule 201. In most cases, however, we’ve seen that the risk is quite low.

When should you file for a Class III permit?

Although there are other valid cases where a Class III permit can be used, the most common and acceptable case is finding un-permitted equipment during a facility audit and applying for a permit to set it right. You should not file for a Class III permit as a means to circumvent the permitting process. This means that a Class III permit should not be used because you need a permit now and can’t wait for the SCAQMD to process the equipment. Some cases call for a Class III permit and some don't. Use your judgment on which yours is.

How to properly file a Class III permit

Here’s the lowdown, in two simple bullets:

• Do tell the SCAQMD that you intend to file a Class III permit application for your facility.
• Don’t file a Class III that doesn’t contain permit conditions. The SCAQMD doesn't like that, and it can send the wrong message about your operation.

The SCAQMD is playing nice by allowing the magical Class III permit to even exist, so you want to play nice in return. And if you don’t play nice, the SCAQMD can always reject your permit application under Rules 210 and 212, which would cause you to lose your coverage. That puts you back at square one, and likely paying far more than you would have. If filing the Class III permit is absolutely necessary, then file the permit with conditions and be clear to the SCAQMD about your circumstances. In almost all cases, the agency will work with you. If, due to time constraints, you don’t yet have all the information the permit requires, let the engineer know when you'll have it, and hold yourself to that date. You can continue to operate with a Class III permit until the SCAQMD takes action, which would be to either grant or deny the official permit. In either case, if your equipment had or currently has a permit, then it must continue to be operated in compliance with the conditions noted on the original permit.

What you need to file a Class III permit application

Just like a regular SCAQMD air permit, a proper Class III permit application consists of forms, fees, and a detailed engineering evaluation. But there are four key differences to keep in mind:

1. In your engineering evaluation, make it clear in the opening paragraph that you are filing for a permit for equipment that was either constructed or modified without a permit to construct. You can use the following wording: This permit application is being submitted for equipment that was constructed/modified without first obtaining a permit to construct.
2. In the rule analysis section, be sure to include an analysis for Rule 202 and a statement indicating that the permit is being filed as a temporary permit to operate. Here’s some wording you can use: This permit application is subject to Rule 202 since it is being filed for equipment that was constructed without first obtaining a permit to construct. It is understood this application serves as a temporary permit to operate.
3. In your fee calculation, be sure that you include the higher fee associated with the Class III permit.In Rule 301 (c)(1)(D)(i), the fee for filing a Class III permit is 150 percent of the base permit-processing fee. So if the base fee for your equipment is $3,927.10, then the total processing fee would be $5,890.65 (i.e., 3,927.10 x 1.5). Rule 301 does not currently apply this additional fee to small businesses (as defined in Rule 102) that have no previous history with the SCAQMD (i.e., those that do not have a facility identification number).
4. In sections 7a and 7c of Form 400-A, be sure to check one of the following boxes: - Equipment Operating Without A Permit - Alteration/Modification without Prior Approval

What happens after you file

Once you file, you’ll receive notification from the SCAQMD that your application was received, at which point it will be processed just like a regular ol’ air permit would. That means that a permit engineer will rely on the information to determine whether the equipment can operate in compliance with all of the applicable rules. If the permit engineer requests further information, be sure to respond as quickly as possible to minimize any delays. Because your application technically gives you a permit to operate, the SCAQMD gives these applications lower priority over other types of permit applications, such as permits to construct. So be prepared to wait. That's the Class III permit in brief. If you'd like help with the process, contact us and we'll walk you through it.

About Grant T. Aguinaldo, PhD

Grant provides techno-economic-regulatory modeling, analysis, and decision support on §45Z, the Low Carbon Fuel Standard (LCFS), and the decarbonization of the economy. He also leads air permitting projects across all of California's major air districts and in other states across the U.S. He is a Lead Verifier for California GHG and LCFS, and Washington GHG.