PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
RULE 505 - PRIORITY RESERVE
(Adopted 09/21/93)
CONTENTS
100 GENERAL
101 PURPOSE
102 APPLICABILITY
200 DEFINITIONS
201 CLEANUP OPERATION
202 ESSENTIAL PUBLIC SERVICES
203 PRIORITY RESERVE BANK
204 QUARTERLY
300 STANDARDS
301 CRITERIA
302 PRIORITY RESERVE
303 ALLOCATION FOR ESSENTIAL PUBLIC SERVICES
304 DISBURSEMENT
305 PRIORITY RESERVE PRIORITIZATION
306 RESERVING PRIORITY RESERVE CREDITS
307 UNUSED CREDITS
308 TRANSFERS
309 RETURNS
310 MORATORIUM
400 ADMINISTRATIVE REQUIREMENTS
401 CALCULATION PROCEDURES
402 EMISSION REDUCTION CREDITS
500 MONITORING AND RECORDS
501 RECORDKEEPING
100 GENERAL
101 PURPOSE: The Priority Reserve Bank is established
within the Emission Reduction Bank for the following
purposes:
101.1 Use in achieving the emissions reduction rate
of progress requirements of the District Air
Quality Attainment Plan or State
Implementation Plan; and
101.2 Use in mitigating emission increases by
stationary sources, represented by permit
applications for new or modified permits, in
the period of July 1, 1991, through January
1, 1993, and the period of January 1, 1993,
through September 21, 1993, to the extent
mitigation was required by law and was not
obtained under the adopted District Rules and
Regulations; and
101.3 Use in providing loans of emission reductions
for use as offsets for new or modified
stationary sources that are essential public
services.
102 APPLICABILITY: Emission reduction loans from the
Priority Reserve shall be made to the extent that
banked emission reductions are available and the
transfer is allowed pursuant to Section 304, to
publicly owned or non-profit essential public services.
The applicant must have secured all potential offsets
available by modifying emission units at the same
stationary source. Disbursement of emission reduction
loans shall not be provided for on-site power
generation. Disbursement of emission reduction loans
shall not be provided for emissions units not necessary
to provide or maintain public health and safety.
Disbursement of emission reduction loans must be made
with banked emission reductions that are surplus to
mandated reductions - the emission reductions required
to meet rate of progress plan commitments and to
mitigate emission increases occurring prior to
September 21, 1993.
200 DEFINITIONS: Unless otherwise defined below, the terms used
in this rule are defined in Rule 502, NEW SOURCE REVIEW, and
Rule 504, EMISSIONS REDUCTION CREDITS.
201 CLEANUP OPERATION - Operation to remove environmental
contaminants from soil or water.
202 ESSENTIAL PUBLIC SERVICES - Except as provided in
Section 102, the following sources shall be considered
essential public services.
a. Sewage treatment operations which are publicly
owned and operated consistent with the approved
General Plan; or
b. Prison, jail, correctional facility; or
c. Police or fire fighting facility; or
d. School or hospital; or
e. Landfill gas control or processing systems; or
f. Water delivery operations which are publicly owned
and operated consistent with the approved General
Plan; or
g. Cleanup or remediation operations mandated by
Regional Water Quality Control Board, California
Department of Health Services, Environmental
Protection Agency or any other state or federal
law, rule or regulation.
203 PRIORITY RESERVE BANK - A depository of emission
reductions used by the District toward achieving
mandated emission reductions or for loans to applicable
essential public services for use as offsets pursuant
to Rule 502, NEW SOURCE REVIEW.
204 QUARTERLY - Calendar quarter beginning in January,
April, July, and October.
300 STANDARDS
301 CRITERIA: The Priority Reserve Bank shall be supported
by actual emission reductions which are certified as
emission reduction credits (ERC) pursuant to Rule 504,
EMISSION REDUCTION CREDITS.
302 PRIORITY RESERVE BANK: Support for the Priority
Reserve Bank shall include, but not be limited to:
302.1 The adjustment on all emission reductions in
accordance with Rule 504, EMISSION REDUCTION
CREDITS.
302.2 Shutdowns or modifications of stationary
sources or emission units not claimed for
emission credits by the facility as provided
in Rule 504, EMISSION REDUCTION CREDITS.
303 ALLOCATION FOR ESSENTIAL PUBLIC SERVICES: On or before
December 31st of each year, the Air Pollution Control
Officer shall determine the amount of emission
reductions from the Priority Reserve Bank to be made
available for withdrawal and application to essential
public services for the upcoming year. Additional
emission reductions not included in the yearly
determination may be added, if the Air Pollution
Control Officer determines there is a need, to the
previously established quarterly allocations.
Allocated emissions reductions shall be made available
on the first Wednesday of each calendar quarter. The
amount available shall never exceed the emission
reductions in the Priority Reserve Bank. The Air
Pollution Control Officer may reserve a portion or all
of the available emission reductions in the Priority
Reserve Bank to meet mandated emission reduction
requirements. In the event the Priority Reserve Bank
lacks sufficient emission reduction credits to offset
emission increases for eligible stationary sources or
emission units, or such emissions have not been
allocated, the owner or operator of the new or modified
stationary source or emission unit shall be responsible
for obtaining the offsets required.
304 DISBURSEMENT: A loan of emission reductions from the
Priority Reserve Bank shall be based upon issuance of a
final action on an Authority to Construct, pursuant to
Rule 502, NEW SOURCE REVIEW, and no later than 15 days
following the end of the calendar quarter or other
schedule deemed applicable by the Air Pollution Control
Officer.
304.1 Legal Title to the emission reductions
borrowed from the Priority Reserve Bank
remains with the District. An ERC
certificate of ownership will not be issued
for emission reductions loaned from the
Priority Reserve Bank.
304.2 A borrower of emission reductions from the
Priority Reserve Bank will be issued an ERC
Bank account number and the borrowed emission
reductions will be credited to that account.
304.3 Upon application by the borrower for an
authority to construct and permit to operate
the emission reductions in the borrower's
account will be credited to the permit.
304.4 The District will enter the permit number and
the amount of emission reductions credited
from the borrower's account on the permit and
in the borrower's account history.
304.5 Disbursement of emission reductions from
source shutdowns and curtailments shall be in
accordance with the most current US
Environmental Protection Agency emissions
trading policy and applicable federal
regulations.
305 PRIORITY RESERVE PRIORITIZATION: Priority shall be
given to mandated emission reductions, the emission
reductions required to meet rate of progress plan
commitments and to mitigate emission increases
occurring prior to September 21, 1993. To the extent
surplus emission reductions are available, priority for
essential public services shall be given to
applications to the Priority Reserve Bank with the
earliest date an application is deemed complete. The
Board of Directors of the District may determine that a
specific project shall be given priority for access to
the Priority Reserve based on public health or safety,
regardless of the application submittal date.
306 RESERVING PRIORITY RESERVE CREDITS: Sources may, if
the Air Pollution Control Officer determines a need,
reserve Priority Reserve credits for up to three years
to allow multi-year projects to be planned. The sum of
such credits shall amount to no more than 25 percent of
each calendar quarter allocation for the Priority
Reserve for those three years.
307 UNUSED CREDITS: During any calendar quarter for which
there are fewer requests for emission credits in the
Priority Reserve Bank than are available for the
calendar quarter allocation, the credits not allocated
shall be made available for use the following calendar
quarter.
308 TRANSFERS: Priority Reserve Bank credits shall not be
transferable from one person to another.
309 RETURNS: Emission reductions shall be returned in full
from the borrower's account to the Priority Reserve
Bank under any of the following conditions:
309.1 Construction is not complete within two years
of date of issuance of the loan.
309.2 Voluntary surrender or revocation of an
Authority to Construct or Permit to Operate.
309.3 Emission reduction credits are issued to the
stationary source pursuant to Rule 504,
EMISSION REDUCTION CREDITS.
310 MORATORIUM: Except as provided in Section 309, a loan
of emission reduction credits shall exist for the life
of the emissions unit using such credits. If the
District Board of Directors determines that additional
emission reductions are necessary, a moratorium on
loans may be imposed. Prior to issuing 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 such actions. The moratorium
shall be lifted upon determination that additional
emission reductions are not necessary by the District
Board of Directors.
400 ADMINISTRATIVE REQUIREMENTS
401 CALCULATION PROCEDURES: Emission reductions deposited
in the Priority Reserve Bank shall be quantified
pursuant to calculation procedures specified in Rule
504, EMISSION REDUCTION CREDITS.
402 EMISSION REDUCTION CREDITS: Any stationary source
which holds Emission Reduction Credits for the affected
pollutant requested in this application or requested in
prior applications, must first use these to replenish
credits previously obtained or for the pending
application, prior to being allowed access to the
Priority Reserve Bank.
500 MONITORING AND RECORDS
501 RECORDKEEPING
501.1 Each stationary source shall maintain a
cumulative total of emission credits obtained
from the Priority Reserve Bank.
501.2 The District shall maintain records of the
source and amount of emission reductions
obtained for deposit in the Priority Reserve
Bank, and transfers of these credits to
applicants and to satisfy mandated emission
reduction measures.