AMAAPCD RULE 412 EMISSION REDUCTION CREDIT
LAST REVISED 11/11/11

Rule 412  Emission Reduction Credit.

     A.   The Air Pollution Control Officer shall allow emissions
          reductions which exceed those required by these Rules
          and Regulations to be banked for use in the future by a
          source owner or by others through agreement with the
          source owner.  Reductions approved under this Rule
          shall be certified by the Air Pollution Control Officer
          and maintained for offset eligibility in an emission
          reduction bank.  Banked emissions shall be used only
          for emission offsets pursuant to this Regulation.

     B.   Emission reductions eligible for credit under this Rule
          shall be actual emissions averaged over a two year
          period from sources holding Permits to Operate, reduced
          through the modification of equipment, modification of
          operations schedules, or shutdowns occurring after
          January 1, 1981.  Eligible reductions shall be real,
          permanent, and enforceable, and shall not derive from
          enactment of more restrictive emission regulations. 
          Emission reductions produced by modifications of
          operations schedules or equipment shall be secured by
          the Air Pollution Control Officer through conditions of
          Permits to Operate.  No emission reduction shall be
          eligible for credit unless the applicant can
          demonstrate that the reduction will produce no
          corresponding emission increase within the District or
          impacting the District.  Emission reductions shall be
          substantiated by source test, emission monitor,
          operating record or other data as required by the Air
          Pollution Control Officer.  Engineering data may be
          substituted for source test data upon approval of the
          Air Pollution Control Officer.

     C.   Eligible emission reductions shall be banked pursuant
          to the following provisions:

          1.   Applications for reduction credit shall be
               submitted on forms or pursuant to guidelines
               approved by the Air Pollution Control Officer. 
               Failure to provide all required information shall
               constitute denial of the application.

          2.   The Air Pollution Control Officer shall publish a
               public notice once in a newspaper of general
               circulation in the District at least thirty (30)
               days prior to making a final decision on an
               application.  The notice shall state the location
               of the application available for public review,
               the quantity, and type of pollutant proposed for
               reduction, and instructions for submitting
               comments.

          3.   If after review of public comments, the
               application is approved by the Air Pollution
               Control Officer, the emission reductions shall be
               certified by return of a certificate to the
               applicant identifying the pollutant type, and
               daily average, and annual quantities approved for
               banking.

          4.   Certified emission reductions shall continue to be
               banked until withdrawn pursuant to the provisions
               of this Rule.

     D.   Emission reductions certified for banking shall be
          withdrawn pursuant to the following provisions:

          1.   The use, sale, or exchange of certified reductions
               shall be at the discretion of the depositor,
               provided that exclusive right to use, and
               authorize use shall not constitute an unrestricted
               right.  Certified reductions shall only be used as
               emission offsets within the District, or outside
               the District with the approval of the Air
               Pollution Control Officer, pursuant to the
               provisions of this Regulation.  If the Air
               Pollution Control Board determines that emission
               reductions contained within an approved
               Nonattainment Plan or other applicable air quality
               maintenance plan are not being met within
               established schedules, the Air Pollution Control
               Board may declare a moratorium on or restrict the
               withdrawal of certified reductions until the
               applicable plan is modified or the reduction
               schedule is met.  The Air Pollution Control
               Officer shall notify all affected depositors of
               the declaration of a moratorium or restriction and
               its cancellation.

          2.   Certified reduction on deposit for less than two
               (2) years shall comply with offset requirements in
               existence on the date of deposit when withdrawn. 
               The use of all other withdrawn reductions shall
               comply with offset requirements in existence on
               the date of issuance of an Authority to Construct.

          3.   If there is more than one owner of the source of
               the certified reduction, initial title to that
               reduction shall be deemed to be owned by such co-
               owners in the same manner as they hold title to
               the source of the reduction at the time the
               reduction was certified by the Air Pollution
               Control Officer.

          4.   Certified emission reductions shall be reduced by
               that quantity required by any applicable emission
               limitation adopted by the Air Pollution Control
               District within two (2) years succeeding the
               issuance of the reduction certificate.

          5.   Withdrawal of the certified reductions may be made
               in whole, or in part, upon application to, review,
               and determination of withdrawal availability by
               the Air Pollution Control Officer.  Prior to the
               use of certified reductions, applicable
               certificates shall be surrendered by the depositor
               to the Air Pollution Control Officer.

     E.   In the event that the Air Pollution Control Officer
          disapproves the certification or withdrawal of emission
          reductions the affected applicant or depositor shall
          have the right to appeal such decision to the Hearing
          Board of the District within 30 days after receipt of
          the notice of disapproval.  The Hearing Board shall
          conduct a public hearing to consider the appeal
          pursuant to the provision of Regulation VII, Procedure
          Before the Hearing Board.