SACRAMENTO METROPOLITAN AIR QUALITY MANAGEMENT DISTRICT

RULE 1005 - MOBILE SOURCE EMISSION REDUCTION CREDITS/BANKING
(Adopted 07/19/94)

INDEX

100 GENERAL

200 DEFINITIONS

300 STANDARDS

400 ADMINISTRATIVE REQUIREMENTS

500 MONITORING AND RECORDS

APPENDIX A


100 GENERAL

101 PURPOSE:

102 APPLICABILITY:

200 DEFINITIONS

201 ACTUAL EMISSIONS REDUCTION: Emissions reductions that are enforceable, permanent, quantifiable, real, and surplus.

202 ALTERNATIVE FUEL: A motor vehicle fuel consisting of methanol, ethanol (including methanol and/or ethanol in combination with gasoline as approved by the California Air Resources Board as an alternative fuel), liquified petroleum gas (LPG), compressed natural gas (CNG), liquified natural gas (LNG), or electricity.

203 BASE VEHICLE: Any motor vehicle that is not a California Air Resources Board-certified reduced-emission vehicle.

204 BURDEN: A computer model for estimating the emissions from mobile and transportation sources by coupling the emission rates from EMFAC with vehicle activity information.

205 CERTIFICATE OF ADVANCE PLACEMENT (CAP): Acknowledgement of potentially surplus emissions reductions, for exceeding the obligation established by this rule for light-duty and medium-duty vehicles.

206 EMFAC: The computer model approved by the California Air Resources Board for estimating emission rates from mobile and transportation sources.

207 ENFORCEABLE: Verifiable and legally binding.

208 ESCROW ACCOUNT: An accounting system maintained by the District in which CAP are deposited prior to disbursement, and kept until matched with real, surplus, permanent, and quantifiable emissions reductions.

209 FLEXIBLE FUEL VEHICLE (FFV): A motor vehicle that is capable of being operated on gasoline or diesel fuel and an alternative fuel.

210 MOBILE SOURCE EMISSION REDUCTION CREDIT (MERC): Actual emissions reductions that are registered with the District in accordance with the requirements of this rule.

211 OBLIGATION: The requirement to provide emissions reductions, in order to comply with any of the District's Mobile Source Rules, Regulation 10.

212 PERMANENT: Credits are permanent if the life of the credit and the life of the obligation, as established in the pertinent rule, are the same.

213 QUANTIFIABLE: Ability to estimate emissions reductions in terms of the amount and characteristics. The same method of estimating emissions should generally be used to quantify emission levels before and after the reduction.

214 REAL: Actually occurring, implemented, and not artificially devised.

215 REDUCED-EMISSION VEHICLE (REV): Any reduced-emission vehicle regulated under the provisions of Rule 1003 - REDUCED-EMISSION FLEET VEHICLES/ALTERNATIVE FUELS.

216 REGISTER: The record maintained by the District of all MERC/CAP deposits, withdrawals, transfers, and transactions.

217 RETROACTIVE CREDIT: MERC and/or CAP, approved by the District, for an emissions reduction occurring prior to January 19, 1995.

218 SPREADING: The use of long-term MERC to meet short-term obligations.

219 STACKING: The use of short term MERC to meet a long term obligation which provides disproportionately high emissions reductions in one time period of the obligation, and disproportionate low (or no) emissions reductions at another time period of the obligation.

220 SURPLUS: Emission reductions in excess of any emission reduction which is:

300 STANDARDS

301 GENERAL:

302 APPLICATION - CONTENTS: Any person, company, business, organization, or public entity proposing to generate emissions reductions pursuant to this rule shall submit an application, for approval by the Air Pollution Control Officer, specifying the manner in which actual emissions reductions are to be achieved. Examples of emission reduction options acceptable to the District are listed in Appendix A.

303 CERTIFICATION OF MERC: Only actual emissions reductions that are in excess of an obligation, if applicable, shall be certified by the Air Pollution Control Officer as MERC's.

304 USE OF MERC: MERC may be banked for later use to satisfy an obligation, may be used immediately to satisfy an obligation, or may be sold or transferred. MERC that are used for stationary source offsets must comply with the requirements of Rule 206 - MOBILE AND TRANSPORTATION SOURCE EMISSION REDUCTION CREDITS.

305 CAP - CONVERSION TO MERC:

306 MERC/CAP LIFE

307 MERC VALUE: The actual dollar value of MERC traded or sold shall be reported to the District pursuant to the requirements of Section 405.

308 RETROACTIVE CREDIT: Emission reductions occurring prior to the effective date of a mobile source rule, may be eligible for retroactive credit. In order for retroactive credit to be approved, an application meeting all of the requirements of Section 401 (with the exception of Section 401.4) must be submitted to, and be approved by, the Air Pollution Control Officer.

400 ADMINISTRATIVE REQUIREMENTS

401 COMPLETE APPLICATION: In order to be complete, the application specified in Section 302 shall include all of the following:

402 APPLICATION - APPROVAL:

403 ISSUANCE OF MERC CERTIFICATE:

404 REGISTRATION:

405 MERC REGISTER:

406 REGISTERING RATIO:

407 REGISTERING RATIO TRACKING: The Air Pollution Control Officer shall maintain records of the disbursement of all MERC to the owner(s) of the MERC, to the District for air quality benefit, and to the escrow account.

408 RELEASE OF DOLLAR VALUE: On an annual basis, the District shall disclose the range in dollar value paid for MERC/CAP, excluding information on the identity of any party involved in the purchase of MERC/CAP.

409 APPEALS: If the Air Pollution Control Officer denies an application pursuant to the provisions of Section 402, any person, company, business, organization, or public entity having made the application may appeal said decision to the Hearing Board.

500 MONITORING AND RECORDS

501 If the provisions of this rule are used to satisfy the obligation established by any other District mobile source rule, the monitoring and record keeping requirements of that rule apply in this rule, as if set forth in full.

502 Records required by the Air Pollution Control Officer to substantiate emissions reductions under a contractual agreement.



APPENDIX A

RULE 1005 MOBILE SOURCE EMISSION REDUCTION CREDIT/BANKING

APPENDIX A

COMPLIANCE OPTIONS: The compliance options approved by the Air Pollution Control Officer for generation of MERC, pursuant to Section 401 are listed below. The District Rule (if any) that governs the compliance option is indicated in parenthesis following each option.

  1. Introducing REV/ALTERNATIVE FUEL into a business or government agency that is not regulated by Rule 1003 - REDUCED-EMISSION FLEET VEHICLES/ALTERNATIVE FUELS, subject to the same terms and conditions of that rule. (Rule 1003 - REDUCED EMISSION FLEET VEHICLES/ALTERNATIVE FUELS)
  2. Retrofitting or repowering an existing base vehicle with a reduced-emission/alternative fuel conversion that has been certified by the California Air Resources Board. (Rule 1003 - REDUCED EMISSION FLEET VEHICLES/ALTERNATIVE FUELS)
  3. Providing enhanced inspection and maintenance of vehicles on an annual basis. (Rule 1003 - REDUCED EMISSION FLEET VEHICLES/ALTERNATIVE FUELS)
  4. Provide a program for the accelerated retirement of old cars. (Rule 1003 - REDUCED EMISSION FLEET VEHICLES/ALTERNATIVE FUELS)
  5. Elimination of vehicular trips (e.g. telecommuting).
  6. Purchasing used REV/ALTERNATIVE FUEL vehicles that have remaining MERC value, provided that they are not purchased in the Sacramento Air Basin, San Joaquin Valley Unified Air Pollution Control District, or the Bay Area Air Pollution Control District. (Rule 1003 - REDUCED EMISSION FLEET VEHICLES/ALTERNATIVE FUELS)
  7. Other, innovative, sources of emissions reductions as approved by the Air Pollution Control Officer, which are demonstrated to be actual emissions reductions.