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California Air Pollution Control Laws


Division 26 Air Resources

Part 3 Air Pollution Control Districts

Chapter 6 General Powers and Duties

§ 40709.5. Development and implementation of program relating to banking of reductions in emissions

Any district which has established a system pursuant to Section 40709 by which reductions in emissions may be banked or otherwise credited to offset future increases in the emissions of air contaminants, or which utilize a calculation method which enables internal emission reductions to be credited against increases in emissions, and as of January 1, 1988, is within a federally designated nonattainment area for one or more air pollutants, shall develop and implement a program which, at a minimum, provides for all of the following:

(a) Identification and tracking of sources possessing emission credit balances accruing from the elimination or replacement of older, higher emitting equipment.

(b) Periodic analysis of the increases or decreases in emissions which occur when credits are used to bring new or modified emission sources into operation.

(c) Procedures for verifying the emission reductions credited to the bank or accruing to internal accounts, and for adjusting of credited emissions based on current district requirements.

(d) Periodic evaluation of the extent to which the system has contributed or detracted from the goal of allowing economic growth and modification of existing facilities, and has contributed to or detracted from the district's progress toward attainment of ambient air quality standards.

(e) Annual publication of the costs, in dollars per ton, of emission offsets purchased for new or modified emission sources, excluding information on the identity of any party involved in the offset transactions. This publication shall specify, for each offset purchase transaction, the year the offset transaction occurred, the amount of offsets purchased, by pollutant, and the total cost, by pollutant, of the offsets purchased. Each application to use emissions reductions banked in a system established pursuant to Section 40709 shall provide sufficient information, as determined by the district, to perform the cost analysis. The information shall be a public record.

Added Stats 1987 ch 491 § 1. Amended Stats 1992 ch 612 § 3 (AB 3785).


1992 Amendment: (1) Deleted former subdivision designation (a); (2) redesignated former subds (a)(1) throught (a)(4) to be subds (a) through (d); (3) deleted former subd (b) and the last two paragraphs which read: “(b) Within the limitations of existing budgetary resources, the state board shall establish, in conjunction with the districts, a technical review group for the purpose of accomplishing all of the following:“(1) Identifying impediments to the effective operation of emission credit systems.“(2) Improving the performance of emission credit systems so as to be consistent, to the extent feasible, with the air quality and economic goals.“(3) Investigating alternatives to current emission offset requirements and banking systems, including, but not limited to, fees in lieu of offsets, economic charges, and community offset banks.The technical review group may hold workshops, conferences, or other meetings, as appropriate, and shall provide an opportunity for representatives of industry and the public to participate and provide information to the review group.“Not later than January 1, 1989, the technical review group shall prepare and submit to the state board a report of its findings and recommendations for improvements in, and alternatives to, the emission credit system and emission offset requirements. After a public hearing, the state board may revise or adopt the recommendations of the technical review group and shall transmit the report and its recommendations to the Legislature and to the districts.”; and (4) added subd (e).

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