KERN COUNTY AIR POLLUTION CONTROL DISTRICT
RULE 210.3 - EMISSION REDUCTIONS BANKING
(Adopted 4/25/83, Amended 6/1/87, 5/2/96)
A. The purpose of this Rule is to:
B. Should the Air Pollution Control Board (APCB) determine that Reasonable Further Progress (RFP) towards attainment
of National Ambient Air Quality Standards as required by the Clean Air Act is not occurring, it may, after public
hearing, establish a moratorium on Banking System deposits and/or withdrawals. It shall be the policy of the APCB
to terminate any moratorium at such time as the APCB adopts those Rules and Regulations necessary to show RFP.
C. An owner or operator of a stationary source shall not be required to obtain a Banking Certificate for emission reductions used by that owner or operator in accordance with Rule 210.1.
A. Source Operation means the last operation preceding the emission of an air contaminant, which operation:
B. Stationary Source includes any structure, building, facility, equipment, installation or operation (or aggregation thereof or aggregation of installations) owned, operated, or under control of the same person (or persons under common control), and located within the District on:
Items of air contaminant emitting equipment shall be considered aggregated into the same stationary source, and items of non-air contaminant emitting equipment shall be considered associated with air contaminant emitting equipment only if:
Emissions from all such aggregated items of air contaminant emitting equipment and all such associated items
of non-air contaminant emitting equipment of a stationary source shall be considered emissions of the same stationary
C. Baseline Emissions are the emissions from which all Emission Reduction Credits are calculated and are the emissions level of a source operation with control equipment in operation as established by Rule 210.1, Section IV. and representative of normal operation while in compliance with District Rules and Regulations.
D. Emission Reduction means the difference between a source operation's baseline emissions and emissions that source emits after a voluntary reduction. Such source shall have been operated under Permit to Operate or shall have submitted an application for or have acquired a Permit to Operate from the District at the time of the reduction.
E. Emission Reduction Credit (ERC) means emission reduction recognized by the District as available for use as tradeoffs or offsets for new or modified stationary sources pursuant to requirements of Rule 210.1.
F. ERC Validation means the procedure as defined by the Control Officer for verifying, prior to determining an emission reduction qualifies as an ERC, that an emission reduction is surplus, permanent, quantifiable, and enforceable by the District. Such procedure may include, but is not limited to, "before" and "after" source testing, issuance of Permits to Operate previously exempt source operations and identification and modification of existing Permits to Operate requiring revision.
G. Milestone means a date before which an emission reduction does not qualify for an ERC.
H. Banking Certificate means the document issued by the Control Officer which officially recognizes an ERC. This document conveys no right to emit air contaminants, but can be used in accordance with these Rules and Regulations as tradeoffs or offsets for new or modified stationary source emissions. A Banking Certificate may include revised existing Permits to Operate as riders if ERC Validation so requires.
I. Banking Certificate Registry means an official public record maintained by the District including a record of all certificate applications received, all certificates issued and denied, all transfers of certificate ownership, etc.
J. Banking means the process of obtaining and using Banking Certificates, including deposit, full or partial withdrawal, and transfer of ownership of ERC's. Banking does not include:
III. Establishing Emission Reduction Credits (ERC's)
A. Emission Reduction Milestone
Banking Certificates cannot be issued for emission reductions represented by Authorities to Construct originally issued before September 12, 1979 for heavy oil production operations and cannot be issued for emission reductions represented by Authorities to Construct or Permits to Operate originally issued before December 28, 1976 and achieved before this date for all other industries. A certificate can be utilized between these two groups provided the issuance date does not predate a milestone.
In accordance with EPA's ERC policy of April 7, 1982, emission reductions resulting from shutdowns prior to August 7, 1977 are not eligible for an external or off-site ERC unless it can be demonstrated the reduction has not already been included in the District's Non-attainment Area Plans and Updates to the plans.
B. Emission Reductions Not Eligible for ERC's
The following emission reductions cannot be validated as ERC's, and therefore, are not eligible for receipt of Banking Certificates:
C. Calculation of Emission Reductions
Emission reductions shall be calculated in a manner not inconsistent with Rule 210.1. An ERC for a source operation shutdown shall be granted only in an amount equal to emissions which would have occurred from the specific source if Reasonably Available Control Technology (RACT) for that source category had been applied.
D. Eligibility of Emission Reductions for ERC
Eligibility of emission reductions for ERC shall be determined by the Control Officer using the following criteria:
IV. Banking Emission Reductions Credits (ERC's)
A. Application for Validation of an ERC
Application for an ERC shall be submitted and validation of an ERC by the Control Officer shall be conducted in the following manner:
a. Has, in fact, actually occurred,
b. Is surplus, i.e., has not previously been required by law or utilized as a tradeoff or offset,
c. Will be permanent,
d. Can be quantified, and
e. Can be enforced.
B. Issuance or Denial of Banking Certificates
After completing the validation procedure required by Subsection IV.A.2., the Control Officer shall either issue or deny a Banking Certificate.
C. Banking Certificates and Registry
Upon payment of the required issuance fee, the Control Officer shall issue and enter in the Banking Certificate Register a Banking Certificate including as a minimum:
a. A duplicate copy of all Banking Certificates issued, including corresponding ERC validation, shall be entered
in the Banking Certificate Registry available for public inspection.
b. Each certificate shall be issued to represent no more than one specific criteria pollutant and for particulates it shall specify type of particulates (e.g., combustion, cement, agricultural, etc.).
c. Upon application and payment of a filing fee, the Control Officer shall reissue a Banking Certificate under new ownership provided he can verify the original ERC validation remains intact.
D. Banking Certificate Longevity
E. Banking Certificate Fees
Banking Certificate fees shall be assessed and administered in accordance with Rule 301.1.
V. Use of Banking Certificates
A. Tradeoffs and Offsets
An ERC represented by a valid KCAPCD Banking Certificate may be used by the owner to tradeoff or offset new or modified stationary source emissions as required and allowed by Rule 210.1.
B. Partial Use of an ERC
Partial use of an ERC entitles the Banking Certificate owner to receive, after payment of the issuance fee, a new Banking Certificate representing the remainder of the ERC.
C. Transfer of Ownership
After payment of the transfer fee, ownership of a Banking Certificate may be transferred. Until provisions are incorporated in this Rule, leasing of Banking Certificates shall not be allowed.
D. Hazardous Air Contaminants
Emission reduction of a hazardous air contaminant are eligible as an ERC and shall be recorded on the Banking Certificate as a criteria pollutant and can only be used to offset non-hazardous air contaminants.