SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

RULE 2506 - AREA SOURCE CREDITS FOR NOx AND SOx
(Adopted April 11, 1997)(December 10, 1999)

(a) Purpose

The purpose of this rule is to encourage emission reductions and technology advancement for unpermitted sources, provide incentives for the accelerated turnover of old, higher-emitting equipment, and generate low-cost NOx and SOx emission credits. Emission credits created under this program may be used as an alternate means of compliance with specified District regulations in order to reduce the cost of achieving attainment of the national and state ambient air quality standards.

(b) Applicability

The provisions of this rule apply to area sources of NOx and/or SOx and become effective April 11, 1997.

(c) Definitions

(d) Eligibility Requirements

(e) Pre-ASC Plans

(f) ASC Plans

(g) Protocol for Emission Reduction Quantification

The quantity of ASCs issued for an emission reduction shall be calculated according to the following formula for each pollutant for each year for which ASCs are sought:

 

ASCyear i = [Baseline Emission Rateyear i - Post-Reduction Emission Rate] x Activity Levelyear i

Where:

ASCyear i = Area Source Credits for year I
Baseline Emission Rateyear i = Baseline emission rate in year I
Activity Levelyear i = Activity level of the area source in year i

(h) Review and Approval of Pre-ASC Plans and ASC Plans

(i) ASC Issuance

(j) Trading of ASCs

(k) Use of ASCs

ASCs may be used only in the specific calendar or fiscal year in which they are denominated, unless another District rule explicitly authorizes a different time frame for use of ASCs. ASCs may not be applied towards compliance with federal requirements that do not authorize compliance through emissions trading including those promulgated by EPA as authorized under Title 42, Section 7412(d) and those subsections of 7511b of the U.S. Code that do not authorize compliance through emissions trading. ASCs may be used as:

(l) Recordkeeping Requirements

(m) Compliance Auditing and Enforcement

(n) Program Audits

 

Table 1

Emission Rates and Test Methods by Source Category

Source Description Emission Ratea Test Methodb

COMBUSTION

External combustion, boiler, < 2mm Btu/hr, fuel oil #2 6.4 lb SOx/1000 gal 100.1 (NOx, SOx, CO), 7.1 (NOx), 6.1 (SOx)
External combustion, boiler, < 2mm Btu/hr, fuel oil #2 19 lb NOx/1000 gal 100.1 (NOx, SOx, CO), 7.1 (NOx), 6.1 (SOx)
External combustion, other, residual oil 6.4 lb SOx/1000 gal  
External combustion, other, distillate oil 6.4 lb SOx/1000 gal  
External combustion, other, distillate oil 19 lb NOx/1000 gal  
External combustion, other, residual oil 53 lb NOx/1000 gal  
External combustion, water heater, residential, natural gas 0.093 lb NOx/mmBtu
heat output
Nitrogen Oxides Emissions Compliance Testing for Natural Gas-Fired Water Heaters and Small Boilers (January 1995; NOx, CO)
External combustion, fan type central furnace, residential, natural gas 0.093 lb NOx/mmBtu
heat output
Rule 1111 Nitrogen Oxides Emissions Compliance Testing for Natural Gas-Fired, Fan-Type Central Furnaces (NOx)
Internal combustion, reciprocating engine, diesel 6.4 lb SOx/1000 gal  
Internal combustion, reciprocating engine, diesel 291 lb NOx/1000 gal  
Internal combustion, reciprocating engine, natural gas 916 lb NOx/mmscf