FEATHER RIVER AIR QUALITY MANAGEMENT DISTRICT




RULE 10.2 - EMISSION REDUCTION CREDIT BANKING

A. APPLICABILITY (Adopted 2/8/93; Amended 4/11/94)
The provisions of this Rule apply to all transactions involving the storage, transfer, or use of Emission Reduction Credits (ERCs) from stationary sources and biomass open burning sources of air pollution emissions. References in this rule to non-permitted source, permit exempt, shutdown, curtailment, authority to construct and permit to operate do not apply to biomass open burning sources. Additional details and procedures covering biomass open burning sources can be found in the Manual of Procedures (MOP) for this rule.

B. PURPOSE (Adopted 2/8/93; Amended 4/11/94; 8/5/96)

B.1 To provide a mechanism for permitted and non-permitted emission sources to deposit, transfer, and use ERCs as offsets as allowed by applicable laws and regulations. To ensure that all emission reductions are transferred through the District's emission reduction credit bank pursuant to the Health and Safety Code. All transfers and uses of emission reductions that are required under the District's New Source Review (NSR) Rule shall be processed in accordance with this rule.

B.2 To define eligibility standards, quantitative procedures, and administrative practices to ensure that ERCs are real, permanent, quantifiable, surplus, and enforceable. Reductions in emissions from the required phasedown of rice straw burning qualify as surplus pursuant to Section 41865 of the California Health and Safety Code.

B.3 To provide a mechanism for intrabasin transfer and use of banked ERCs.

B.4 To ensure that biomass open burning is prohibited for a parcel for which an ERC certificate has been issued.


C. DEFINITIONS (Adopted 2/8/93; Amended 4/11/94; 8/5/96)
Unless otherwise defined, terms as used in this Rule are defined in the New Source Review Rule or Regulation I.

C.1 Applicable Requirements: Means air quality requirements with which a facility must comply pursuant to the State Implementation Plan, the Federal Clean Air Act as amended in 1990 and implementing regulations, and other provisions of the United States Code of Federal Regulations.

C.2 Applicant: The person, entity, landowner or their designee applying for an ERC certificate.

C.3 Bankable Emission Reductions: emission reductions of pollutants and their precursors for which ambient air quality standards exist, and which meet the provisions of the District's Banking Rules. Such reductions may be deposited in the District's ERC Bank. Once banked and certified, the emission reductions become ERCs.

C.4 Banking: the District's system of quantifying, certifying, recording, and storing ERCs for future use or transfer. This system shall be called the Emission Reduction Credit Bank (herein referred to as the "ERC Bank").

C.5 Banking Register: the document that records all ERC deposits, withdrawals, transfers, and other transactions including the claiming of biomass open burning offset credits by stationary sources existing prior to first adoption of this Rule.

C.6 Biomass: material derived from the harvesting of crops or removal of vegetation, including timber, except for material from processed dimensional timber.

C.7 Certificate of Biomass Credit: a document certifying that an application for an emission reduction credit certificate has been filed for a parcel(s) and applicable eligibility requriements have been met.

C.8 Concurrent Stationary Source Modification: the modification of emissions units and/or the addition of new emissions units to a stationary source which is simultaneous with all emission reductions occurring after the issuance of the Authority to Construct authorizing such reductions, but which occur before the start of operation of the new or modified emissions unit which has an emission increase.

C.9 Emission Reduction Credits (ERCs): reductions of actual emissions from an emission unit that are registered with the District in accordance with the requirements of the District's Banking Rules.

C.10 ERC Certificate: a document certifying title to a defined quantity and type of ERCs issued by the District to the owners identified on the Certificate.

C.11 No-burn List: A list of parcels for which ERCs exist and which will not receive burn permits.

C.12 Non-inventoried Emissions: those emissions of an air pollutant into the atmosphere from any source which has not been recorded on the District emission inventory.

C.13 Parcel(s): A legally identifiable piece of land, or a portion of that land or combined lands under common ownership, as registered with the County Assessor's office for property tax purposes.

C.14 Reasonable Further Progress: such annual incremental reductions in emissions of relevant air pollutants as required by the federal Clean Air Act or as required by the Administrator of the EPA for the purpose of ensuring attainment of applicable national ambient air quality standards.

C.15 Registered owner: The person, entity, landowner or their designee in whose name the ERC certificate is issued and listed in the banking register.

C.16 Transfer: the conveyance of an ERC from one entity to another.


D. ELIGIBILITY OF EMISSION REDUCTIONS (Adopted 2/8/93; Amended 4/11/94)
For the purposes of this subsection, District means the Feather River Air Quality Management District (FRAQMD) or any former County Air Pollution Control District that is now included in the FRAQMD.

For biomass open burning the application period and eligibility requirements are specified in other sections of this rule. Subsections D.1 through D.6 do not apply to biomass open burning sources.

D.1 Emissions reductions before February 8, 1993:

  1. Emission reductions occurring after January 1, 1988 which have been recognized by the District prior to February 8, 1993, pursuant to a formal internal tracking mechanism shall be deemed eligible emission reductions, provided:
    1. The APCO determines that such emission reductions comply with the definition of Actual Emission Reduction; and
    2. The emission reductions have not been used for approval of an Authority to Construct or used as offsets.
  2. Under no circumstances shall any Emissions reductions occurring before February 8, 1993, other than as described in Subsection D.1(a), be eligible for emissions reduction credit banking certificates.

D.2 Emission reductions occurring After February 8, 1993:
For emission reductions occurring after February 8, 1993, the following criteria must be met in order to deem such reductions eligible for banking:

  1. Actual emission reductions are calculated in accordance with the calculation procedures of the District's New Source Review Rule, or for biomass open burning calculated in accordance with this Rule, and comply with the definition of Actual Emission Reductions.
  2. An application for ERCs has been filed no later than 365 days after the emission reductions occurred.
  3. For non-permitted emission units the following shall apply:
    1. Emissions must have been included in the 1987 emissions inventory.
    2. The source creating ERCs shall apply for and obtain a Permit to Operate.
    3. A source which proposes to use permit exempt emission units for offsets must relinquish its exempt status and obtain permits for any new or modified emission units of the same type as those used for offsets.
    4. If the emission reduction is due to the shutdown of a non-permitted unit, the ERC Certificate applicant must demonstrate to the satisfaction of the APCO that emissions from such unit or units meet all applicable requirements of this Rule. Such unit or units will no longer be operated within the District unless, and until a Permit to Operate is obtained from the District.
    5. If the District, pursuant to state laws, cannot permit the emission unit, the source creating ERCs shall execute a legally binding contract between the applicant and the owner or operator of such offset source, which by its terms, shall be enforceable by the District. Any such permit or contract shall contain enforceable conditions which ensure that the emission reductions will be provided in accordance with the provisions of this Rule, and shall continue for the reasonably expected life of the proposed source.

D.3 A stationary source which provided offsets pursuant to the District's New Source Review Rule and was issued an Authority to Construct after January 1, 1988, may apply to bank such offsets pursuant to Subsection

D.2 if the Authority to Construct is voluntarily surrendered, expires, or is cancelled or if the Permit to Operate resulting from such Authority to Construct is voluntarily modified, surrendered or is revoked.

D.4 The following emission reductions are eligible as ERCs for banking, under the following conditions:
Emission reductions from the shutdown or curtailment of retail gasoline dispensing operations or dry cleaning operations, provided that such emission reductions are used for the same source category.

D.5 The following emission reductions are not eligible as ERCs for banking:
a. Emission reductions occurring from the shutdown or curtailment of a stationary source for which emission reductions originally provided are no longer enforceable by the District.
b. Emission reductions occurring from the shutdown or curtailment of a stationary source for which the District originally provided the required emission reductions.

D.6 Emission reductions resulting from shutdowns or permanent curtailment of sources shall not be more than the quantity of emissions that would have been emitted had the source operated in compliance with existing rules and regulations.

D.7 The District may claim emission reductions not applied for as ERCs under this rule, from any source, and use such emission reductions toward attainment of air quality standards or deposit the emission reductions into its community bank. Before making such a claim for emission reductions the District shall provide notice to the landowner or source that the District intends to claim the emissions reduction. Following such notice, the District may claim the emission reductions provided that the landowner or source does not apply for the ERC within 90 days.


E. ERC CERTIFICATE APPLICATION PROCEDURES (Adopted 2/8/93; Amended 4/11/94; 3/9/95; 8/5/96)

E.1 Any entity, landowner or 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. For biomass open burning sources, if the applicant is not the landowner, written authorization from the landowner must be included with the application for an ERC certificate.

E.2 The person or entity requesting the ERC Certificate shall make an application on forms supplied by the District.

E.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. The application for an ERC certificate for biomass open burning may include more than one parcel but must have separate emission calculations for each parcel or portion of a parcel covered in the application.

E.4 In accordance with the provisions of Section 6254.7 of the Government Code, applicants may claim confidentiality of information contained in the application.

E.5 ERC Certificate applications shall be submitted within the following time frames:

  1. Biomass Open Burning: ERC applications for reductions which occurred prior to January 1, 1996 must be submitted by December 1, 1996. Thereafter, applications must be submitted by May 1 for reductions occurring in the previous calendar year or for the current calendar year ending December 31.
  2. Other Sources: ERC applications shall be submitted within 365 days of the date of emission reduction. The date of the emission reduction shall be considered to be the last day that the emission occurred or the date when the permit expires, is modified, or is cancelled, whichever is later.

E.6 To confirm emission reductions claimed in conjunction with an application for an ERC Certificate, the District may require source tests by ARB approved methods, continuous monitoring, production records, fuel use records, or any other appropriate means. For biomass open burning, verification of emission reductions shall be in accordance with Section K of this Rule and the provisions of the Manual of Procedures.

F. ADMINISTRATION (Adopted 2/8/93; Amended 4/11/94; 8/5/96)
For ERCs for biomass open burning reductions, a separate administrative timetable is found in the Manual of Procedures.

F.1 The APCO shall determine whether an ERC Banking Certificate application is complete not later than thirty (30) days following receipt of the application, or after a longer time period agreed upon in writing by both the applicant and the APCO.

F.2 If the APCO determines that the application is not complete, the applicant shall be notified in writing of the decision, specifying the additional information that is required. The applicant shall have sixty (60) days, or a longer time agreed to by both the applicant and APCO, to submit the requested information. Upon receipt of all requested information, the District shall have thirty (30) days to determine completeness. If no data are submitted or the application is still incomplete, the APCO may cancel the ERC Banking Certificate application with written notification to the applicant. Upon determination that the application is complete, the APCO shall notify the applicant in writing.

Thereafter, only information to clarify, correct, or otherwise supplement the information submitted in the application may be requested.

F.3 Withdrawal of a banking application by an applicant shall result in cancellation of the application; any re-submittal shall be processed as a new application.

F.4 Upon acceptance of a complete application, the APCO shall have sixty (60) days to perform an initial assessment of the application. In the case of an application for biomass credits, a Certificate of Biomass Credit (CBC) may be issued pursuant to Section G.5. Upon completion of the initial assessment, the District shall provide written notice of such to the applicant and shall also provide written notice to the ARB and the EPA and publish notice in the newspaper of local and general circulation in the District. The notice shall specify the applicant, the quantity of emission reductions requested and a statement of the initial assessment.

F.5 Publication of the notice shall commence a thirty (30) day public comment period during which the APCO shall accept written comments on the merits of the ERC Certificate application. Upon conclusion of this thirty (30) day period, the APCO shall have thirty (30) days to render a decision as to whether the APCO approves, conditionally approves, or denies the application. This decision shall be promptly supplied in writing to the applicant. The noticing requirements period may be waived by the APCO if the emission reductions have already been subject to ARB, EPA and public comment. The notice requirements may also be waived by the APCO if the emission reduction credits applied for are less than 10,000 pounds per quarter per pollutant, except for CO which is 20,000 pounds per quarter, and biomass open burning credits for less than 500 acres per parcel.

F.6 The applicant or any other interested party may appeal the APCO's decision following provisions specified in the District's Regulation V.

G. REGISTRATION OF ERC CERTIFICATES (Adopted 2/8/93; Amended 4/11/94; 8/5/96)

G.1 The District shall maintain a bank register, which shall consist of the following:

  1. A record of all deposits, withdrawals, and other transactions with regard to the District's banking system.
  2. A record of all biomass open burning offset credits derived from reduced burning within the District which credits are claimed by stationary sources existing prior to the adoption of this rule (pre-existing source).

G.2 Offset credits claimed from reduced biomass open burning by a pre-existing stationary source within the District shall be reported to the District for incorporation into the banking register. Such offsets shall be incorporated into the banking register within two years after April 11, 1994. The offsets shall not be subject to adjustments under Section H of this Rule. In the event that biomass open burning offset credits are claimed by a pre-existing stationary source and obtained from outside the District, the District shall report the claiming of such credits to the District of origin of the biomass material.

G.3 In the event that biomass open burning emission credits are claimed by a new or modified stationary source as offsets and obtained from outside the District, the District shall report the claiming of such offset credits to the District of origin of the biomass material.

G.4 The APCO may only grant an ERC Certificate after the emission reductions have actually occurred and upon satisfaction of the following applicable provisions:

  1. If the emission reductions were created as a result of greater operating efficiencies, reduced throughput, or shortened operating hours, or from the application of more efficient control technology: a revised Permit to Operate has been issued. This revised permit must include specific quantifiable emission limits reflecting the reduced emissions.
  2. If the emission reductions were created as a result of the shutdown of a permitted emissions unit: the relevant Permits to Operate have been surrendered and voided.
  3. If the emission reductions from a permitted emissions unit were created by means of reducing production or production rates: the relevant Permit to Operate has been modified to reflect the emission reductions.
  4. If the emission reductions were created as a result of the application of greater operating efficiencies or from the application of a more efficient control technology to a then non-permitted source: a Permit to Operate has been obtained, or a written contract between the owner or operator of such source and the ERC applicant has been executed which, by its terms, shall be enforceable by the APCO. The referenced permit or contract shall include specific quantifiable emission limits reflecting reduced emissions.

G.5 When all the requirements of this Rule have been satisfied and the emission reduction has actually occurred, the APCO shall take one of the following actions:

  1. For Stationary Sources, issue the ERC certificate, or,
  2. In the case of biomass credits:
    1. Place the parcel(s) on the no-burn list and issue the ERC certificate, or
    2. If requested in writing by the applicant, issue a certificate of biomass credit (CBC). The CBC shall indicate that the applicant has satisfied all the requirements of this rule and is eligible to receive an ERC Certificate upon placement of the parcel(s) on the no-burn list. The District shall issue an ERC Certificate within 30 days of receiving a written request by the holder of the CBC and payment of a transfer fee.

For Biomass open burning the emission reduction will be deemed to have occurred when the parcel(s) have been put onto the no-burn list. Upon the APCO's determination to grant an ERC Certificate, title to such ERC shall be registered in the Banking Register. Such titles may be made available for public inspection.

G.6 All information concerning titles, interests, and other matters such as liens, encumbrances, and changes of record shall be identified in the District's ERC Banking Register until the ERC Certificate is used, cancelled, or nullified by operation of law.

G.7 Each ERC Certificate shall be numbered, bear the date of issuance, be signed by the District official charged with the responsibility of keeping the District's ERC Bank, and bear the seal of the District. One copy of the ERC Certificate shall be retained by the District and the original shall be delivered to the owner or party acting for the owner. The record of issued ERC Certificates shall be retained by the District. Delivery by the District of an ERC Certificate to an owner shall be accomplished in person or by registered mail. The person accepting the ERC Certificate shall sign a receipt therefor and provide such proof of identity as the APCO may require.

G.8 At the option of joint owners of ERCs, such persons may receive one ERC Certificate for the entirety or separate ERC Certificates reflecting each proportional share, provided that such ERCs are derived from a single reduction at a single emitting unit. The District's ERC Bank shall reflect the consolidation or separation of the ERCs.

G.9 The ERC certificate may be changed to adjust the quantity of banked ERCs without the owner's consent so long as the action is consistent with applicable District, state, and federal rules and/or planning requirements including Reasonable Further Progress. Actions to reduce the quantity of banked ERCs which are inconsistent with applicable District, state, or federal rules shall require the consent of the owner. Adjustments shall only be made after public notice and hearing.

G.10 Prior to adjusting the estimated quantity or the conditions of deposit, use, or withdrawal of banked ERCs for any reason, the APCO shall notify the ERC Certificate owner in writing.

G.11 Except as provided in Subsection F.9 of this Rule, deposits are permanent until used by the depositor or any party to whom the ERC Certificate has been transferred. After issuance of the ERC Banking Certificate, subsequent changes in regulations to require the type of reduction banked shall not reduce or eliminate the deposit.

G.12 If the APCO determines that additional mandatory emission reductions will be necessary to achieve ambient air quality standards, the APCO may declare a full or partial moratorium on banked ERCs of the applicable contaminant. Prior to imposing any kind of moratorium, the APCO must provide public notice that the District has determined that sufficient emission reductions cannot be achieved through the imposition of controls on existing permitted or non-permitted emissions units. Should such a determination be made, a moratorium on deposits shall first be imposed. Should the APCO determine that a moratorium on withdrawals of banked ERCs is also necessary to attain applicable air quality standards, a public notice shall first be provided to this effect. Only after a public hearing resulting in the determination that a moratorium is needed, and written notice to ERC Certificate owners of the applicable contaminant, may any moratorium be imposed. Any such moratorium shall be lifted upon the determination by the APCO and public notice that Reasonable Further Progress can be demonstrated by the District.

G.13 Title to an ERC shall be deemed registered at the time the required information concerning the ERC is entered into the Register. Title shall be vested in the applicant's name or his/her designee and shall inure to the benefit of his or her heirs. In the case of ERCs granted for open burning of biomass, title shall be vested with the landowner or landowner's designee.

G.14 All dealings with ERCs or any interest therein, and all liens, encumbrances, and charges upon the same, subsequent to the first registration thereof, shall be deemed to be subject to the terms of this Rule, and to such amendments and alterations as may hereafter be made.

G.15 The APCO may reissue lost or destroyed ERC Certificates after the owner vouches to the satisfaction of the APCO that the original has been lost or destroyed.


H. ADJUSTMENTS TO EMISSION REDUCTION CREDITS (Adopted 2/8/93; Amended 4/11/94)

H.1 Except as provided in H.2. below, the District may take five percent (5%) of the emissions reductions before the ERCs are granted and apply the emissions toward attainment of the air quality standards or place the emissions into the District's community bank for use by essential public services.

H.2 An applicant may restrict use of their ERCs for their own future use, at the same parcel or site, in which case the District will not adjust the ERCs. The applicant may have the restriction removed by the District upon payment of costs incurred by the District to re-issue an unrestricted ERC certificate.

H.3 Deposits are permanent until used by the depositor or any party to whom the ERC certificate has been transferred. After issuance of the certificate, subsequent changes in regulations to require the type of emission reduction which has been banked shall not reduce or eliminate the ERC.

H.4 Owners of ERC certificates may donate their ERCs to the District for purposes of assisting the District towards attainment of the air quality standards or for use in the community bank.


I. WITHDRAWAL, TRANSFER, AND USE OF ERCs (Adopted 2/8/93; Amended 4/11/94)

I.1 ERCs may be used at the time of, or anytime after deposit into the District's ERC Bank by the owner of the ERC Certificate to provide offsets for increase in onsite emissions from new or modified emission units.

I.2 Transfer in whole or in part of a registered ERC Certificate shall be done in accordance with applicable procedures of this Rule. Upon payment of a transfer fee a new ERC Certificate, certifying the title or interest in the ERC, shall be issued and the original ERC shall be cancelled. Such cancellation shall be recorded in the Banking Register.

I.3 Nothing in this Rule prevents the lease or temporary transfer, in whole or in part, of ERCs represented by ERC Certificates. However, all transfers shall be considered permanent until modified by application which demonstrates to the satisfaction of the APCO that the emissions for which the ERCs were required have either ceased or other emission reductions have been secured.

I.4 Except as provided below, all emissions reductions to be used as offsets under the new source review rule must first be processed through this rule and receive an ERC certificate in accordance with the requirements of this rule. Onsite reductions in emissions which are concurrent with onsite increases in emissions from other emission units and meet the requirements of the NSR Rule are not required to go through this ERC Banking Rule.

I.5 ERCs which result from the shutdown of an emissions unit, or a curtailment in throughput or hours of operation of emissions unit, shall not be used as offsets for a new or modified source where the permitted emissions would exceed emissions thresholds established for the District in the federal Clean Air Act for major source modifications, unless the applicant can establish the following:

  1. The proposed new source or modification is a replacement, and the shutdown or curtailment occurred after August 7, 1977, or
  2. An application for credit was filed with the District within 180 days of the date of last emission; and
    1. The crediting of shutdown emissions complies with the most recent emission trading policy or regulations of the US Environmental Protection Agency; and
    2. The District has met statutory planning mandates and air quality improvement milestones.

I.6 On transfer of ownership of ERCs to a stationary source for use as offsets the registered owner shall provide information to the District on costs, if any, in dollars per ton, of emission offsets purchased for, or acquired by, the new or modified source.


J. STATIONARY SOURCE ERC CALCULATIONS (Adopted 2/8/93; Amended 4/11/94)
Calculations of emission reductions shall be determined by the methods described in the District's NSR Rule.

K. ERC CALCULATIONS FOR BIOMASS OPEN BURNING (Adopted 2/8/93; Amended 4/11/94)
The Manual of Procedures (MOP) contains emission factors (EF), fuel loading factors (FL), default historical burn fractions (HBF), and default quarterly burn fractions (QBF). Default HBFs and QBFs shall be used to calculate the ERCs. An alternative use of parcel specific HBFs and QBFs may be used after a methodology is developed and receives written ARB concurrence. The alternative method must address specific geographic areas with specific air quality problems.

The following information shall be used in the calculation of ERCs. However when using default HBF and QBF factors, paragraphs 3 and 4 below do not apply:

K.1 Basic information: The applicant shall provide data on the crop type, exact location of the parcel, including assessor's parcel number and other information regarding parcel location required in the MOP, acreage burned (AB), and date of biomass open burning within the baseline period. The applicant shall use county burn permit authorization records or other verifiable records to validate the information as specified in the MOP. The type of biomass residue and the acreage burned shall be used in the ERC calculation.

K.2 Acreage Burned: The applicant for emission reductions from biomass open burning shall provide the acreage burned for each parcel of land for which ERCs are applied. Acreage must have been burned for at least one of the five (5) baseline years of 1988 through 1992. The applicant shall use county burn permit authorization records or other verifiable records to determine the acreage.

K.3 Historical burn fraction (HBF): The applicant shall provide available data on historical biomass burn percentage for the parcel during the five (5) baseline years of 1988 through 1992. The historical burn fraction (0-1) is an adjustment to the amount of ERC available. The applicant may use county burn permit authorization records or other verifiable records to determine the amounts of prior burning. For rice straw burning an historical burn fraction of one (1) will be used for the parcel.

K.4 Quarterly burn fraction (QBF): The applicant shall provide available data on quarterly biomass burning for the parcel during the five (5) baseline years of 1988 through 1992. The applicant may use county burn permit authorization records or other verifiable records to determine the date of burning. The quarters are defined as Jan-Mar, Apr-Jun, Jul-Sep, and Oct-Dec.

K.5 The biomass fuel loading (FL) and emission factors (EF) set forth in the MOP shall be used for the crops indicated. Alternatively, the applicant may propose and the District may select the appropriate biomass fuel loading and emission factors to be used in the calculations from the Annual Agricultural Burning Plan for the Sacramento Valley Air Basin or other best available data.

K.6 Discount acreage (DA): The applicant may reduce the total acreage covered by the ERC certificate to allow for continued burning of a portion of the total acreage of the parcel(s). This reduction in the total acreage covered will be reflected in the emission credits applicable to the parcel(s). The portion of the parcel(s) covered by the discount acreage (i.e the acreage eligible for a burn permit) must be clearly identified. This portion will not be allowed to change without prior District notification and approval.

K.7 The District shall determine a quarterly ERC value for each pollutant based on the following calculation:

ERCs = (AB-DA) * HBF * FL * EF * QBF

K.8 Stationary sources which have applied for an Authority to Construct or equivalent authority prior to the date of adoption of this Rule, and which thereafter apply for ERCs, may utilize the calculation factors contained in the MOP on the date of first adoption of this Rule.


L. DISTRICT ENFORCEMENT CONSIDERATIONS FOR BIOMASS OPEN BURNING ERCS (Adopted 2/8/93; Amended 4/11/94)

L.1 Revision or cancellation of ERC certificates at the request of the registered owner to allow burning of a parcel for which ERCs have been granted may be handled as follows, with prior written approval from the APCO:

  1. The registered owner may request that the District reduce the quantities of the emissions covered by the ERC certificate by the amount of emissions associated with the reduced acreage requested. After the District revises the ERC certificate, that portion of the parcel may be burned in accordance with current agricultural burning regulations. The portion of the parcel that is covered by the discount acreage (i.e the acreage eligible for a burn permit) must be clearly identified. This portion cannot be changed without prior District notification and approval.
  2. The registered owner may surrender the ERC certificate to the District for cancellation and burn the parcel pursuant to current agricultural burning regulations.

L.2 District enforcement considerations related to ERCs include the following:

  1. To meet the requirement of enforceability, a contract, permit conditions, no burn list, or other means shall be utilized.
    1. Parcels for which an ERC has been issued shall be designated on a no-burn list. A burn permit shall not be issued for a parcel if an ERC is currently in effect for that parcel. The registered owner may apply for cancellation, modification or substitution of the ERC under Section L.1 of this Rule.
    2. To further ensure the enforceability of ERCs and offsets from biomass open burning, an owner of a parcel for which an ERC has been issued and who is preparing to sell that property shall either:
      1. Place a restriction on the parcel title, prior to sale, foregoing all biomass open burning on that parcel, or
      2. Submit an application for transfer of ownership of the ERCs to the new landowner, within 14 days after the transfer of title to the parcel, consistent with the transfer procedures of this Rule. The ERCs shall automatically terminate 15 days after transfer of the land to a new owner unless the registered owner has complied with either of the two options in this Section (L.2a.2.).
    3. At the time of application, the applicant for ERCs for reduced biomass open burning must provide information to the District on the disposition of the biomass.
    4. Emission reduction credits used to offset project emissions in another district shall be implemented through an interdistrict agreement to ensure their enforceability and permanence.
  2. Facilities that claim open burning emission reduction offsets pursuant to Health & Safety Code Sections 41605.5 and 42314.5 must keep a daily log of biomass received by type, origin, quantity, and date. Such facilities shall also prepare and submit to the District a quarterly report on their emissions and corresponding biomass offsets. The District may require an annual status report on biomass contracts for the next year prior to reissuance of the annual Permit to Operate.


L.3 For additional information on enforceability of this Rule refer to the Manual of Procedures which contains ERC and offset tracking, biomass open burn permitting, and other procedures related to the implementation of this Rule.

M. FEES (Adopted 2/8/93; Amended 4/11/94)
Fees shall be required for application, transfer or replacement of an ERC Certificate, as specified in Regulation VII.