PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
RULE 504 - EMISSION REDUCTION CREDITS
(Adopted 09/21/93; Revised 11/03/94)
CONTENTS
100 GENERAL
101 PURPOSE
102 APPLICABILITY
110 EXEMPTION, NOTIFICATION REQUIREMENTS
111 EXEMPTION, CONCURRENT STATIONARY SOURCE MODIFICATION
200 DEFINITIONS
201 ACTUAL EMISSION REDUCTIONS
202 BANKING
203 BEST AVAILABLE RETROFIT CONTROL TECHNOLOGY
204 CERTIFIED
205 ELECTRICAL POWER PLANTS
206 EMISSION REDUCTION CREDITS
207 EMISSIONS UNIT
208 ENFORCEABLE
209 ERC CERTIFICATE
210 HISTORIC ACTUAL EMISSIONS
211 NON-PERMITTED EMISSIONS
212 OFFSET
213 PARCEL(S)
214 PERMANENT
215 PROPOSED EMISSIONS
216 PORTABLE EQUIPMENT
217 QUANTIFIABLE
218 QUARTERLY
219 REAL
220 REASONABLY AVAILABLE CONTROL TECHNOLOGY
221 REGISTER
222 REPLACEMENT EQUIPMENT
223 SHUTDOWN
224 TEMPORARY SOURCE
225 TRANSFER
300 STANDARDS
301 CERTIFICATION
302 REEVALUATION
303 NON-PERMITTED SOURCES
304 SHUTDOWNS
305 USE OF ERC'S, BANKING
306 USE OF ERC'S, OFFSETS
307 RETURNS, USE OF ERC'S FOR TEMPORARY STATIONARY SOURCES
AND PORTABLE EQUIPMENT
308 RETURNS, ISSUANCE OF PERMIT TO OPERATE
309 RETURNS, USE OF ERC'S FOR ELECTRICAL POWER PLANTS
310 RETURNS, ERC'S FROM THE PRIORITY RESERVE
400 ADMINISTRATIVE REQUIREMENTS
401 APPLICATION PROCEDURES
402 COMPLETE APPLICATION
403 PRELIMINARY DECISION
404 PUBLICATION AND PUBLIC COMMENT
405 PUBLIC INSPECTION
406 CERTIFICATION, FINAL ACTION
407 WITHDRAWAL OF APPLICATION
408 CALCULATION OF EMISSIONS, GENERAL
409 PRIORITY RESERVE ADJUSTMENT OF CALCULATED CREDITS
410 REGISTRATION
411 ERC REGISTER
412 MORATORIUM
500 MONITORING AND RECORDS
501 RECORDKEEPING
100 GENERAL
101 PURPOSE: To provide an administrative mechanism for
quantifying, adjusting and certifying surplus emission
reductions for:
101.1 later use as offsets pursuant to District,
state or federal rules or regulations, or
101.2 transfer to other sources as offsets pursuant
to Rule 502, NEW SOURCE REVIEW.
102 APPLICABILITY: This rule shall apply to all emissions
reduction credits for use within a stationary source or
for transfer to other sources.
110 EXEMPTION, NOTIFICATION REQUIREMENTS: The requirements
of Sections 404 and 405; relating to notification,
publication, and public inspection of Preliminary
Decisions; shall not apply if the application is for
emission reduction credits less than the following per
calendar quarter:
Emission
Affected Pollutant Reduction
Credits
Reactive Organic Compounds 9,000
lbs/quarter
Nitrogen Oxides 9,000
lbs/quarter
Sulfur Oxides 9,000
lbs/quarter
PM10 7,200
lbs/quarter
Carbon Monoxide 49,500
lbs/quarter
111 EXEMPTION, CONCURRENT STATIONARY SOURCE MODIFICATION:
Pursuant to Section 40709(c) of the California Health
and Safety Code, need not be banked prior to use as
offsets, if those reductions satisfy all criteria
established by this rule, Rule 501, GENERAL PERMIT
REQUIREMENTS, and Rule 502, NEW SOURCE REVIEW. For the
purposes of this exemption, "concurrent stationary
source modification" means the simultaneous
modification of emission units and/or the addition of
new emissions units to a stationary source with all
emission reductions occurring after the issuance of the
Authority to Construct authorizing such reductions, but
before the start of operation of the new or modified
emissions unit(s) with emission increases.
200 DEFINITIONS: Unless otherwise defined below, the terms used
in this rule are defined in Rule 502, NEW SOURCE REVIEW.
201 ACTUAL EMISSIONS REDUCTIONS - Reductions of emissions
from an emissions unit. Actual emission reductions
shall be calculated pursuant to Section 407,
Calculation of Emissions, and meet all of the following
criteria:
201.1 The emissions reductions shall be real,
enforceable, quantifiable, and permanent.
201.2 The emissions reductions shall be surplus
emissions reductions in excess of any
emissions reduction which is:
a. Required or encumbered by any laws, rules,
regulations, agreements, or orders, and
unless such law by its terms states that the
emission reduction shall be considered
surplus, or
b. Attributed to a control measure noticed for
workshop in the District, or proposed or
contained in a State Implementation Plan, or
c. Proposed or contained in the District Air
Quality Attainment Plan for attaining the
annual reductions required by the California
Clean Air Act.
201.3 Except for control measures which are
federally mandated or otherwise required or
encumbered by law, emissions reductions
attributed to a proposed control measure may
be re-eligible as surplus actual emissions
reductions for:
a. Control measures identified in the District
Air Quality Attainment Plan or State
Implementation Plan where no rule has been
adopted within two years from the scheduled
adoption date, provided, however, the Air
Pollution Control Officer has not extended
the scheduled adoption date, or
b. Control measures not identified in the
District Air Quality Attainment Plan or State
Implementation Plan where no rule has been
adopted and two years have elapsed beyond the
date of the latest public workshop notice, or
c. Control measures proposed in the District Air
Quality Attainment Plan which are not
included into the Plan adopted by the
District Board shall become re-eligible upon
adoption of the Plan.
201.4 Source shutdowns and curtailments may not be
given emission reduction credit in the case
of non-attainment pollutants, including
precursors, if they occurred prior to the
date of application unless:
a. The shutdown or curtailment was claimed by
the affected facility as a credit within 180
days of the last date of operation. Shutdown
or curtailment credits not claimed within 180
days shall pass to the Priority Reserve Bank
as provided in Rule 505, PRIORITY RESERVE.
b. The crediting of shutdown emissions complies
with the most recent emission trading policy
of the US Environmental Protection Agency;
and
c. The District has met the statutory planning
mandates and air quality improvement
milestones; or
d. The proposed new source or modification is a
replacement, and the shutdown or curtailment
occurred after August 7, 1977, or
e. The proposed new source or modification does
not meet the US Environmental Protection
Agency definition of a major source or major
modification; the shutdown or curtailment
occurred after August 7, 1977; the shutdown
or curtailment was document by a concurrent
application to the District for emissions
reduction; and the emission reduction credit
is used at the same stationary source.
202 BANKING - The system of quantifying, adjusting,
certifying, recording, and storing ERC's for future use
and transfer. This system shall be called the Emission
Reduction Credit Bank (ERC Bank).
203 BEST AVAILABLE RETROFIT CONTROL TECHNOLOGY (BARCT) - an
emission limitation that is based upon the maximum
degree of reduction achievable, taking into account
environmental, energy, and economic impacts by each
class or category of source. The criteria for BARCT
are specified in "California Clean Air Act Guidance for
the Determination of Reasonably Available Control
Technology and Best Available Retrofit Control
Technology", California Air Resources Board, April
1990.
204 CERTIFIED - Emission reduction credits which have been
evaluated under the requirements of this rule and other
applicable District, state and federal rules and
regulations and which have been authorized by the Air
Pollution Control Officer.
205 ELECTRICAL POWER PLANTS - An electrical generating
facility located within the District 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.
206 EMISSION REDUCTION CREDITS (ERC) - Reductions of
actual emissions from an emission unit that are
registered with the District in accordance with the
requirements of this rule.
207 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 air pollutant,
regulated air pollutant or Hazardous Air Pollutant
(HAP), directly or as fugitive emissions. An emissions
unit shall not include the open burning of agricultural
biomass. With the exception of early reductions of
Hazardous Air Pollutants in accordance with Section
112(i)(5) of Title V of Federal Clean Air Act as
amended in 1990, reduction credits may only be obtained
for reductions in affected pollutants.
208 ENFORCEABLE - Verifiable and legally binding.
Enforceable, for the purposes of federal requirements,
means all federally enforceable limitations and
conditions enforceable by the administrator, including:
NSPS; NESHAP; requirements within any applicable State
Implementation Plan; any permit requirement established
pursuant to 40 CFR 52.21, 51.160-166; or federal
operating permit requirements.
209 ERC CERTIFICATE - A document certifying title to a
defined quantity and type of ERC's issued by the
District to the owner(s) identified on the Certificate.
210 HISTORIC ACTUAL EMISSIONS -
210.1 For applications for emissions reductions
deemed complete after the September 21, 1993,
"historic actual emissions" are the actual
emissions for the existing emissions unit
averaged over the consecutive two year period
immediately preceding the date of application
for emission reduction credits. If the last
two years are unrepresentative of normal
source operations as determined by the Air
Pollution Control Officer, then any two
consecutive years of the last five years that
represent normal source operation may be
used.
210.2 For applications for emissions reductions
deemed complete prior to the September 21,
1993, "historic actual emissions" are either
as calculated in Subsection 210.1, above, or,
at the option of the applicant and with the
approval of the Air Pollution Control
Officer, are the actual emissions for the
existing emissions unit averaged over the
three year period immediately preceding the
date of application for emission reduction
credits.
210.3 If, at any time during the two or three year
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.
210.4 Where an emissions unit has been in operation
for less than two years, a shorter averaging
period of at least one year may be used,
provided that the averaging period is
representative of the full operational
history of the emissions unit. 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.
211 NON-PERMITTED EMISSIONS - Those emissions of an
affected pollutant which are not required to obtain a
permit pursuant to Rule 501, GENERAL PERMIT
REQUIREMENTS. Non-permitted emissions may include
emissions from mobile sources, indirect sources, and
exempt equipment.
212 OFFSET - The use of an emission reduction credit to
compensate for an emission increase of an affected
pollutant from a new or modified source subject to the
requirements of Rule 502, NEW SOURCE REVIEW.
213 PARCEL(S) - A legally identifiable piece of land as
registered with the County Assessors's office for
property tax purposes.
214 PERMANENT - Only permanent reductions in emissions can
qualify for emission reduction credit. Permanence may
generally be assured for sources subject to federal
requirements by requiring federally enforceable changes
in source permits, or applicable state regulations to
reflect a reduced level of allowable emissions.
215 PROPOSED EMISSIONS - Emissions based on the potential
to emit for the new or modified emissions unit.
216 PORTABLE EQUIPMENT - Equipment which is periodically
relocated and is not operated more than a total of 180
days at any one location in the District within any
continuous 12 month period.
217 QUANTIFIABLE - Ability to estimate emission reductions
in terms of both their amount and characteristics. The
same method of estimating emissions should generally be
used to quantify the emission levels before and after
the reduction.
218 QUARTERLY - Calendar quarter beginning in January,
April, July, and October.
219 REAL - Actually occurring, implemented, and not
artificially devised.
220 REASONABLY AVAILABLE CONTROL TECHNOLOGY (RACT) - The
lowest emission limitation that a particular source is
capable of meeting by the application of emission
control technology that is reasonably available
considering technical and economic feasibility. The
criteria for RACT are specified in "California Clean
Air Act Guidance for the Determination of Reasonably
Available Control Technology and Best Available
Retrofit Control Technology", California Air Resources
Board, April 1990.
221 REGISTER - The document that records all ERC deposits,
withdrawals, transfers, and transactions.
222 REPLACEMENT EQUIPMENT -
222.1 Functionally Identical Replacement: The
replacement of or modification of emission
units(s) where the replacement unit serves
the identical function as the unit(s) being
replaced, and the maximum rating and the
potential to emit any pollutant will not be
greater from the new or modified emissions
unit(s) than the replaced unit(s), when the
emissions unit(s) are operated at the same
permitted conditions.
222.2 Identical Replacement: The total or partial
replacement of an emissions unit where the
replacement is the same as the original unit
in all respects except for serial number.
223 SHUTDOWN - The earlier of either the permanent
cessation of emissions from a source or an emission
unit or the surrender of that unit's or source's
operating permit.
224 TEMPORARY SOURCE - Temporary emission sources such as
pilot plants, and portable facilities which will be
terminated or located outside the District after less
than a cumulative total of 90 days of operation in any
12 continuous months , and the emissions resulting from
the construction phase of a new source.
225 TRANSFER - The change in ownership of an ERC from one
person or legal entity to another.
300 STANDARDS
301 CERTIFICATION: Only actual emission reductions shall
be certified as ERC's. Such actual emission reductions
shall meet the following requirements to be certified
as ERC's.
301.1 Apply for emission reduction credits pursuant
to Section 401, and
301.2 Receive written approval of the Air Pollution
Control Officer, and
301.3 If the emission reduction is created from an
emission unit where the demand for the
services or product could shift to other
similar sources in the District, submittal of
data to document that such reductions will
result in District-wide emission reductions
may be required by the Air Pollution Control
Officer. Such documentation must be approved
by the Air Pollution Control Officer.
301.4 Emissions decreases shall be prescribed by
enforceable emission limitations contained in
authorities to construct and permits to
operate, or result from the permanent
surrender or the voiding of permits to
operate.
302 REEVALUATION: Actual emission reductions calculated
prior to September 21, 1993, shall be reevaluated under
the requirements and procedures specified in this rule.
303 NON-PERMITTED SOURCES:
303.1 Except as provided in Section 303.2, non-
permitted emissions units or stationary
sources requesting emission reduction credits
from such emissions units shall void the
exemption from Rule 501, GENERAL PERMIT
REQUIREMENTS. Such sources shall not operate
such emissions unit or stationary source
without first obtaining a permit pursuant to
Rule 501, GENERAL PERMIT REQUIREMENTS.
303.2 If state or federal law prohibits the
District from requiring an authority to
construct or a permit to operate pursuant to
Rule 501, GENERAL PERMIT REQUIREMENTS, the
applicant for emission reduction credits
shall execute a legally binding contract with
one or more owner(s) or operator(s) of the
non-permittable emissions unit that ensures
the sum of all emission reductions will be
provided in accordance with the requirements
of this rule, and will continue for the life
of the stationary source using the credits or
life of the credits as provided in the
application. Such a contract shall be filed
with the District and, by its terms, be
enforceable by the Air Pollution Control
Officer. For sources subject to federal NSR
requirements, in the absence of federally
enforceable conditions, the execution of a
source specific SIP revision is required.
304 SHUTDOWNS: Shutdowns or curtailments occurring after
the September 21, 1993, claimed for emission reduction
credit shall comply with the following:
304.1 Applicants for emission reductions due to the
shutdown of permitted or non-permitted
emissions units shall demonstrate to the
satisfaction of the Air Pollution Control
Officer that such equipment will no longer be
operated within the District.
304.2 Emission reductions from the shutdown of
retail dry cleaners and retail gasoline
stations shall be prohibited.
304.3 An application for emission reduction credits
from the shutdown of emissions units or
stationary sources shall be submitted within
180 days after the surrender of the permit to
operate or for non-permitted sources the last
date of operation of such emissions unit or
stationary source.
305 USE OF ERC'S, BANKING: ERC's may be banked for later
use as offsets. The name of the user shall be entered
into the Register for the applicable ERC's. Except as
provided in Section 308, 309, 310, and 311 such ERC's
may not be returned to the bank following the start of
operation of the stationary source or emissions unit
using the ERC as offsets.
306 USE OF ERC'S, OFFSETS: ERC's may be used immediately
as offsets. The ERC shall be entered into the Register
along with the name of the user. Except as provided in
Sections 308, 309, 310, and 311 such ERC's may not be
returned to the bank following the start of operation
of the stationary source or emissions unit using the
ERC as offsets. ERC's may not be used to offset
increases in toxic air contaminants.
307 RETURNS, USE OF ERC'S FOR TEMPORARY STATIONARY SOURCES
AND PORTABLE EQUIPMENT: ERC's used as offsets for
temporary stationary sources or emissions units or used
as offsets for portable equipment shall be returned in
full to the owner upon verification of shutdown of the
temporary stationary source, emissions unit, or
portable equipment by the Air Pollution Control
Officer. ERC's must then be re-deposited in the Bank
and re-entered into the Register by the owner, within
60 days.
308 RETURNS, ISSUANCE OF PERMIT TO OPERATE: If the
applicant for a Permit to Operate requests a lowering
of the quarterly emission limitation as a result of
emissions testing conducted pursuant to an Authority to
Construct and the requested new emissions limitation
has been demonstrated as achievable by such emissions
testing and will be continuously achieved, the
difference in emission reductions credits necessary to
offset the emissions unit pursuant to Rule 502, NEW
SOURCE REVIEW, shall be re-deposited in the Bank and
re-entered into the Register.
309 RETURNS, USE OF ERC'S FOR ELECTRICAL POWER PLANTS:
ERC's may be used at electrical power plants to offset
emission increases resulting from increased power plant
operation needed to compensate for reduced operation at
other electrical power plant(s) within the District,
due to emergency breakdown, pursuant to Rule 404, UPSET
CONDITIONS, BREAKDOWNS OR SCHEDULED MAINTENANCE, or
regularly scheduled maintenance. ERC's shall be
returned in full to the owner upon verification of
return to normal operation of the using electrical
power plant. ERC's shall be re-deposited in the Bank
and re-entered into the Register. The application of
the provisions of this Section shall be approved in
writing by the Air Pollution Control Officer prior to
use.
310 RETURNS, ERC'S FROM THE PRIORITY RESERVE: Emission
Reduction Credits are returned after a being loaned in
accordance with Rule 505, PRIORITY RESERVE, shall be
returned to the originating Priority Reserve. Legal
title to ERC's transferred to the ERC Bank from the
Priority Reserve remains with the District and not the
borrower.
400 ADMINISTRATIVE REQUIREMENTS
401 APPLICATION PROCEDURES:
401.1 Any person or entity, or an authorized agent,
which owns or operates a source at which an
eligible emission reduction has occurred or
will occur may apply for an ERC certificate
in accordance with the requirements of this
rule.
401.2 The person or entity requesting the ERC
certificate shall make an application on
forms supplied by the District.
401.3 The application may be for reductions in one
or more affected pollutants. The application
shall contain sufficient information to allow
for adequate evaluation of actual emission
reductions.
401.4 Applicants may claim confidentiality for
submitted information to the extent allowed
and provided for by provisions of the Federal
Clean Air Act and the Administrative
Procedures of the California Government Code.
401.5 To verify emission reductions claimed in
conjunction with an application for an ERC
certificate, the District may require source
tests by California Air Resources Board
and/or US Environmental Protection Agency
approved methods, continuous monitoring,
production records, fuel use records, or any
other appropriate means.
402 COMPLETE APPLICATION:
402.1 The Air Pollution Control Officer shall
determine whether the application for ERC is
complete not later than 30 days after receipt
of the application for ERC, 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. If specified
information is not submitted by the applicant
within 60 days from the notification from the
District that the application is incomplete,
the application shall be automatically
canceled unless the applicant has requested
an extension of time, in writing and prior to
the end of the 60 day period, from the Air
Pollution Control Officer. The Air Pollution
Control Officer may grant an extension of
time not to exceed 90 days. If the
application is for a shutdown or curtailment
emission reduction credit, failure to provide
the additional information or failure to
request an extension of time shall result in
those credits passing to the Priority Reserve
Bank pursuant to Rule 505, PRIORITY RESERVE.
402.2 Upon receipt of any re-submittal of the
application, a new 30-day period to determine
completeness shall begin.
402.3 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. 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.
402.4 A fee shall be required pursuant to Rule 601,
PERMIT FEES - STATIONARY SOURCE.
402.5 For offsets provided in accordance with
Health and Safety Code Sections 41605.5,
42314.5, and 41865 concerning emission
reductions from open field burning, an ERC
application covering the total emission
reductions necessary to offset stationary
source emissions may be submitted at the time
of application for an Authority to Construct.
Applications for ERC's from agricultural
burning shall not be required if such
emissions are covered by an ERC obtained by
the stationary source utilizing such emission
reductions.
402.6 The applicant shall submit to the Air
Pollution Control Officer records required
pursuant to Section 501.
403 PRELIMINARY DECISION: Except as provided in Section
110, 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 the emission reductions should be certified
as an ERC. The decision shall be supported by a
succinct written analysis.
404 PUBLICATION AND PUBLIC COMMENT: Except as provided in
Section 110, within ten calendar days following a
preliminary decision, 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 110,
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 CERTIFICATION, FINAL ACTION:
406.1 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.
406.2 Except as provided in Section 110, 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
District's office.
407 WITHDRAWAL OF APPLICATION: Withdrawal of an
application for certification of an ERC by the
applicant shall result in cancellation.
408 CALCULATION OF EMISSIONS, GENERAL: Calculations
performed pursuant to procedures specified in this
Section shall not conflict with the requirements of
state law. The following procedures apply to the
calculation of ERC's for all sources, with the
exception of ERC's from the open burning of biomass:
408.1 Actual emission reductions from modifications
to, or shutdowns of, existing emissions units
shall be calculated for each calendar quarter
by subtracting the proposed emissions from
historical actual emissions. Any positive
value shall qualify for conversion to an
emission reduction credit.
408.2 Credits for particulate matter emission
reductions shall be expressed in terms of
PM10.
408.3 Credits for nitrogen oxides, reactive organic
compounds, carbon monoxide, sulfur oxides and
PM10 shall be quantified in terms of pounds
of pollutants per quarter for each calendar
quarter.
408.4 Actual emission reductions shall be adjusted
to at least reflect emission rates achievable
with reasonably available control technology
(RACT) or best available retrofit control
technology (BARCT), whichever results in the
greatest adjustment.
409 PRIORITY RESERVE ADJUSTMENT OF CALCULATED CREDITS:
Before the Air Pollution Control Officer may issue a
certificate of ownership for any ERC's, the emission
reductions calculated in Section 408 shall be adjusted
1.05 emission reductions to 1.0 ERC. Emission
reductions captured by the ERC adjustment shall pass to
the Priority Reserve Bank pursuant to Rule 505,
PRIORITY RESERVE.
410 REGISTRATION:
410.1 Following certification of emission reduction
credits and verification that the proposed
emission reductions have been implemented,
the Air Pollution Control Officer shall issue
an original ERC Certificate to the owner(s)
by certified mail or in person.
The issuance of an ERC certificate shall not
constitute evidence of compliance with the rules
and regulations of the District, or a
representation or assurance to the recipient upon
which reliance is authorized or intended that the
ERC represented by the ERC certificate are
available from the District ERC bank.
410.2 The ERC Certificate shall contain:
a. Certificate number, and
b. Date of issuance, and
c. Street address and APN of site creating the
surplus emissions reductions for which the
ERC Certificate is issued, and
d. Signature of the responsible District
official, and
e. The name of the owner shall be typed on the
certificate and the owner shall sign the
certificate. If the owner is a public or
private business entity, a person authorized
to sign on behalf of the owner shall sign the
certificate, and
f. Conditions of operation or use, including the
life of the credit.
410.3 A copy of each ERC Certificate issued shall
be maintained in the Bank Register.
410.4 Multiple owners of emission reduction credits
shall be separated according to agreements,
filed with the District, between the owners
with one ERC Certificate issued to each owner
for their respective portion.
410.5 Upon transfer of ERC's between parties, the
transferor's ERC certificate, and a copy of
an agreement, signed by the transferor,
authorizing and memorializing the transfer of
the ERC to the transferee must be surrendered
to the Air Pollution Control Officer by the
transferee, within 30 days of the date of the
writing authorizing the transfer of the
ERC's.
Upon receipt and review of said documents the Air
Pollution Control Officer shall issue a new ERC
certificate in the name of the transferee. If
fewer than all the transferor's ERC's are
transferred, a new certificate shall be issued to
the transferor showing the remaining ERC's. The
District may refuse to recognize any transfer of
ERC's that does not comply with the requirements
of this section.
410.6 The original ERC Certificate surrendered by
the registered owner shall be filed in the
register and marked with the date of issuance
of the new ERC Certificate(s), the number of
credits transferred, and the new ERC
Certificate number(s). If fewer than all
ERC's are transferred, the new balance in the
name of the original owner shall be entered
in the register.
410.7 Prior to the issuance of a permit allowing
the use of ERC's, the registered owner shall
surrender the ERC Certificate to the Air
Pollution Control Officer. The certificate
surrendered by the owner shall be filed in
the register and marked with the permit
number, street address and APN of site of
use, and the name of the owner using the
ERC's. If a balance of ERC's remain, a new
ERC Certificate shall be issued to the
original owner and the original ERC
Certificate shall be filed in accordance with
the provisions of this rule.
410.8 Unless such records and information were
previously submitted to the Air Pollution
Control Officer, each ERC transaction must be
accompanied submittal of the information of
Section 501.
411 ERC REGISTER:
411.1 The register shall contain the following
information for each ERC Certificate issued
by the Air Pollution Control Officer:
a. Certificate number, and
b. Date of issuance, and
c. Name and address of the registered owner, and
d. Street address and APN of site creating the
surplus emissions reductions for which the
ERC Certificate is issued, and
e. Number of ERC's registered.
411.2 Upon notice of a transfer of an ERC
Certificate the Air Pollution Control Officer
shall enter the following information in the
register:
a. Original ERC Certificate number, and
b. New ERC Certificate number, or street
address, APN, and permit numbers at which the
ERC's are being used, and
c. Name and address of new owner(s), if any, and
d. Number of ERC's being transferred.
411.3 Upon use of the ERC's for offsets, the
following information shall be entered in the
register:
a. All information required in Section 411.2,
and
b. Date ERC Certificate was surrendered to the
Air Pollution Control Officer, and
c. Permit numbers to which ERC's are being
applied, and
d. Name and address of ERC user, and
e. Name, if any, address, and APN of site where
ERC's are being used as offsets, and
f. Number of ERC's being used for offsets.
412 MORATORIUM: If the District Board of Directors
determines, after review of periodic reports prepared
by the Air Pollution Control Officer, that additional
emission reductions are necessary, a moratorium on
withdrawals may be imposed. Prior to imposing a
moratorium, the Air Pollution Control Officer shall
provide a notice of the date of the meeting of the
District Board of Directors to consider issuance of a
moratorium to owners of ERC and other interested
parties. The moratorium shall be lifted upon
determination that additional emission reductions are
not necessary by the District Board of Directors.
Except as provided in Section 201.2, after the issuance
of an ERC Certificate, subsequent changes in
regulations, except Regulation 5, shall not reduce or
eliminate the deposit.
500 MONITORING AND RECORDS
501 RECORDKEEPING:
501.1 Cost of Offsets: Each applicant to seeking
to deposit, withdrawal, or transfer Emission
Reduction Credits shall, as applicable,
report to the District each emissions trading
transaction; the amount of emissions for
offsets purchased, by pollutant; the year the
offset transaction occurred; and the total
cost, by pollutant, of the offsets purchased,
and other such information as may be required
to perform the cost analysis required by
Section 40709.5(e) of the California Health
and Safety Code. This information shall be
part of the public record.