SACAQMD RULE 1005 MOB. SOURCE EMS. RED. CR./BANKING          
LAST REVISED 06/21/94

          
          SACRAMENTO METROPOLITAN AQMD                RULES AND REGULATIONS
    RULE   1005   -   MOBILE   SOURCE   EMISSION   REDUCTION CREDITS/BANKING


                                        (Adopted 06-21-94)


                                              INDEX

          100 GENERAL
              101  PURPOSE
              102  APPLICABILITY

          200 DEFINITIONS
              201  ACTUAL EMISSION REDUCTION
              202  ALTERNATIVE FUEL
              203  BASE VEHICLE
              204  BURDEN
              205  CERTIFICATE OF ADVANCE PLACEMENT (CAP)
              206  EMFAC
              207  ENFORCEABLE
              208  ESCROW ACCOUNT
              209  FLEXIBLE FUEL VEHICLE (FFV)
              210  MOBILE SOURCE EMISSION REDUCTION CREDIT(MERC)
              211  OBLIGATION
              212  PERMANENT
              213  QUANTIFIABLE
              214  REAL
              215  REDUCED-EMISSION VEHICLE (REV)
              216  REGISTER
              217  RETROACTIVE CREDIT
              218  SPREADING
              219  STACKING
              220  SURPLUS

          300 STANDARDS
              301  GENERAL
              302  APPLICATION - CONTENTS
              303  CERTIFICATION OF MERC
              304  USE OF MERC
              305  CAP - CONVERSION TO MERC
              306  MERC/CAP LIFE
              307  MERC VALUE
              308  RETROACTIVE CREDIT

          400 ADMINISTRATIVE REQUIREMENTS
              401  APPLICATION - REQUIRED
              402  APPLICATION - APPROVAL
              403  ISSUANCE OF MERC CERTIFICATE
              404  REGISTRATION
              405  MERC REGISTER
              406  MERC TRACKING
              407  REGISTERING RATIO
              408  REGISTERING RATIO TRACKING
              409  APPEALS

          500 MONITORING AND RECORDS
              501  MONITORING
              502  RECORDKEEPING



          APPENDIX A
              COMPLIANCE OPTIONS
          
          100 GENERAL

              101  PURPOSE:
                   101.1   To provide a means by which regulated businesses
                           and/or  government  agencies are able to develop
                           flexible compliance programs  that  are tailored
                           to  the specific conditions and requirements  of
                           each business and/or government agency.
                   101.2   To minimize  the  cost  of  mobile source and/or
                           indirect source compliance with  District rules,
                           while providing the emissions reductions  needed
                           to   attain   the   air  quality  goals  of  the
                           Sacramento Metropolitan  Air  Quality Management
                           District.
                   101.3   To  establish  a  mobile source and/or  indirect
                           source emissions reduction credit/banking system
                           wherein emission reduction credits (MERC) may be
                           administered.

              102  APPLICABILITY:
                   102.1   This  rule applies to  all  persons,  companies,
                           businesses,  organizations,  or  public entities
                           that  are  regulated  by  the District's  Mobile
                           Source Rules (Regulation 10).
                   102.2   Persons,  companies, businesses,  organizations,
                           or public entities  that  are not subject to one
                           of  the  District's  Mobile  Source   Rules  may
                           register emissions reductions under this rule in
                           order to generate MERC, subject to Section 401 .

          200 DEFINITIONS

              201  ACTUAL  EMISSIONS REDUCTION:  Emissions reductions  that
                   are  enforceable,  permanent,  quantifiable,  real,  and
                   surplus.

              202  ALTERNATIVE  FUEL:   A  motor vehicle fuel consisting of
                   methanol, ethanol, (including methanol and/or ethanol in
                   combination with gasoline  as approved by the California
                   Air Resources Board as an alternative  fuel),  liquified
                   petroleum  gas  (LPG),  compressed  natural  gas  (CNG),
                   liquified natural gas (LNG), or electricity.

              203  BASE   VEHICLE:    Any  motor  vehicle  that  is  not  a
                   California   Air  Resources   Board-certified   reduced-
                   emission vehicle.

              204  BURDEN:  A computer  model  for estimating the emissions
                   from mobile and transportation  sources  by coupling the
                   emission   rates   from   EMFAC  with  vehicle  activity
                   information.

              205  CERTIFICATE OF ADVANCE PLACEMENT (CAP):  Acknowledgement
                   of   potentially  surplus  emissions   reductions,   for
                   exceeding  the  obligation  established by this rule for
                   light-duty and medium-duty vehicles.

              206  EMFAC:  The computer model approved  by  the  California
                   Air  Resources Board for estimating emission rates  from
                   mobile and transportation sources.

              207  ENFORCEABLE:  Verifiable and legally binding.

              208  ESCROW  ACCOUNT:  An accounting system maintained by the
                   District   in   which   CAP   are   deposited  prior  to
                   disbursement, and kept until matched with real, surplus,
                   permanent, and quantifiable emissions reductions.

              209  FLEXIBLE FUEL VEHICLE (FFV):  A motor  vehicle  that  is
                   capable of being operated on gasoline or diesel fuel and
                   an alternative fuel.

              210  MOBILE  SOURCE EMISSION REDUCTION CREDIT (MERC):  Actual
                   emissions   reductions  that  are  registered  with  the
                   District in accordance  with  the  requirements  of this
                   rule.

              211  OBLIGATION:    The   requirement  to  provide  emissions
                   reductions,  in  order  to   comply   with  any  of  the
                   District's Mobile Source and/or Indirect  Source  Rules,
                   Regulations 10 and 11.

              212  PERMANENT:   Credits  are  permanent  if the life of the
                   credit and the life of the obligation, as established in
                   the pertinent rule, are the same.

              213  QUANTIFIABLE:  Ability to estimate emissions  reductions
                   in  terms  of the amount and characteristics.  The  same
                   method of estimating  emissions should generally be used
                   to  quantify  emission  levels   before  and  after  the
                   reduction.

              214  REAL:    Actually   occurring,  implemented,   and   not
                   artificially devised.

              215  REDUCED-EMISSION VEHICLE  (REV):   Any  reduced-emission
                   vehicle regulated under the provisions of  Rule  1003  -
                   REDUCED-EMISSION FLEET VEHICLES/ALTERNATIVE FUELS.

              216  REGISTER:   The record maintained by the District of all
                   MERC/CAP   deposits,    withdrawals,    transfers,   and
                   transactions.

              217  RETROACTIVE  CREDIT:  MERC and/or CAP, approved  by  the
                   District, for  an emissions reduction occurring prior to
                   (six months following date of adoption).

              218  SPREADING:  The use of long-term MERC to meet short-term
                   obligations.

              219  STACKING:  The use  of  short  term  MERC to meet a long
                   term  obligation  which  provides disproportionate  high
                   emissions  reductions  in  one   time   period   of  the
                   obligation,  and  disproportionate low (or no) emissions
                   reductions at another time period of the obligation.

              220  SURPLUS:  Emission  reductions in excess of any emission
                   reduction which is:
                   220.1   required  or  encumbered  by  any  laws,  rules,
                           regulations, agreements, orders, and unless such
                           law  by  its  terms  states  that  the  emission
                           reduction shall be considered surplus, or
                   220.2   attributed  to a  control  measure  noticed  for
                           workshop  in  the   District,   or  proposed  or
                           contained in a State Implementation Plan, or
                   220.3   proposed or contained as near-term  measures  in
                           the  District  Air  Quality  Attainment Plan for
                           attaining the annual reductions  required by the
                           California  Clean  Air  Act.   Temporary  actual
                           emissions reductions may be authorized  if  they
                           meet  all  the  requirements of this rule except
                           they are not permanent, and shall cease to exist
                           as  temporary actual  emission  reductions  upon
                           implementation of the near-term control measure.
                   220.4   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  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.


          300 STANDARDS

              301  GENERAL:
                   301.1   Any     persons,     companies,      businesses,
                           organizations, or public entities not  regulated
                           by a District Mobile Source Rule may comply with
                           the  provisions  of  this rule in order to  earn
                           MERC.
                   301.2   Pursuant   to   Section  301.1,   any   persons,
                           companies, businesses,  organizations, or public
                           entities  not  regulated by  a  District  Mobile
                           Source Rule must exceed the same obligation, and
                           the same terms and  conditions, imposed upon any
                           persons,  companies, businesses,  organizations,
                           or  public entities   regulated  by  a  District
                           mobile  source  rule or indirect source rule, as
                           if that rule were  set  forth  in  full here, in
                           order to earn MERC/CAP.

              302  APPLICATION - CONTENTS:  Any person, company,  business,
                   organization,  or  public  entity  proposing to generate
                   emissions reductions pursuant to this  rule shall submit
                   an  application,  for  approval  by  the  Air  Pollution
                   Control  Officer, specifying the manner in which  actual
                   emissions  reductions  are  to be achieved.  Examples of
                   emission reduction options acceptable  to  the  District
                   are listed in Appendix A.
                   302.1   The   application   shall  include  all  of  the
                           information specified in Section 401; and
                   302.2   A fee, as provided for in Rule 304 - PLAN FEES.

              303  CERTIFICATION OF MERC:  Only actual emissions reductions
                   that  are  in  excess of an obligation,  if  applicable,
                   shall be certified  by the Air Pollution Control Officer
                   as MERC's.

              304  USE  OF MERC:  MERC may  be  banked  for  later  use  to
                   satisfy  an  obligation,  may  be  used  immediately  to
                   satisfy  an  obligation,  or may be sold or transferred.
                   MERC that are used for stationary  source  offsets  must
                   comply  with  the  requirements of Rule 206 - MOBILE AND
                   TRANSPORTATION SOURCE EMISSION REDUCTION CREDITS.
                   304.1   Long term MERC  may be spread over the life of a
                           series of short term obligations, as provided in
                           the applicable rule.
                   304.2   MERC stacking shall  be  permitted over the life
                           of an obligation, provided  that the obligation,
                           averaged over any three year period of its life,
                           is met with sufficient CAP or  MERC, pursuant to
                           the   provisions  of  the  rule  in  which   the
                           obligation is generated.

              305  CAP - CONVERSION TO MERC:
                   305.1   CAP  generated   under  the  provisions  of  the
                           District's  mobile  source  or  indirect  source
                           rules (Regulations  10 and 11) that are not used
                           within those rules to satisfy an obligation, may
                           be placed in the escrow account.
                   305.2   CAP in the escrow account  shall convert to MERC
                           when  matched with equivalent  actual  emissions
                           reductions  that  accrue  due to the registering
                           ratio  pursuant  to  Section 406,  or  to  other
                           actual emission reductions.

              306  MERC/CAP LIFE
                   306.1   MERC, or CAP held in the  escrow  account may be
                           held  for  a maximum of three (3) years  without
                           losing any credit life.
                   306.2   Except  as  provided   by   Section  306.1,  the
                           remaining  life for MERC/CAP shall  decrease  by
                           one year for  each  full calendar year following
                           the date of credit issuance,  and by one quarter
                           calendar   year   for   each  calendar   quarter
                           following  the  date  of  issuance,  or  portion
                           thereof, until it has no remaining life.
                   306.3   MERC/CAP  life is dependent  on  the  length  in
                           years  of  the   actual   emissions   reductions
                           activity.
                   306.4   The  life  of  MERC/CAP  generated by a District
                           mobile  or  indirect  source   rule   shall   be
                           established   by   the   rule  in  which  it  is
                           generated.
                   306.5   The  lifetime  of  MERC  earned   by  innovative
                           programs,  as  approved  by  the  Air  Pollution
                           Control Officer, shall be determined on  a  case
                           by case basis.
              307  MERC  VALUE:   The actual dollar value of MERC traded or
                   sold shall be reported  to  the District pursuant to the
                   requirements of Section 405.

              308  RETROACTIVE CREDIT:  Emission reductions occurring prior
                   to the effective date of a mobile  source  rule,  may be
                   eligible   for   retroactive   credit.    In  order  for
                   retroactive   credit  to  be  approved,  an  application
                   meeting all of the requirements of Section 401 (with the
                   exception of Section 401.4) must be submitted to, and be
                   approved by, the Air Pollution Control Officer.

          400 ADMINISTRATIVE REQUIREMENTS

              401  COMPLETE APPLICATION:   In  order  to  be  complete, the
                   application  specified in Section 302 shall include  all
                   of the following:
                   401.1   The specific  emission reduction strategy, which
                           must include all of the following:
                               a) A clear  demonstration that the emissions
                               reductions  proposed  are  actual  emissions
                               reductions, and
                               b)  The  data,  and  methodology  used,  for
                               quantifying     the    proposed    emissions
                               reductions; and
                               c)  The  life  of  the   proposed   emission
                               reductions.
                               d) A clear demonstration that the obligation
                               or emissions reductions are achievable  each
                               year over a three year period.
                   401.2   A  contractual  agreement, between the applicant
                           and the District,  in which the applicant agrees
                           to  provide  a  specified  amount  of  emissions
                           reductions over a specified period of time.
                   401.3   The application shall  clearly  demonstrate,  to
                           the  satisfaction  of  the Air Pollution Control
                           Officer, that the emissions  reductions proposed
                           are actual emissions reductions.
                   401.4   The number of the rule in District Regulation 10
                           which regulates the applicant, if applicable.
                   401.5   The  obligation  incurred  as a result  of  that
                           rule,  if  applicable, expressed  in  pounds  of
                           pollutant(s)  per  year,  as  determined  by the
                           applicable  calculations  or worksheets provided
                           in the applicable rule(s).
                   401.6   All  emissions  calculations   provided  in  the
                           application shall be in pounds of  TOG or oxides
                           of  nitrogen,  as required by the Air  Pollution
                           Control Officer.
                   401.7   Calculations  demonstrating  how  the  emissions
                           reduction provided  will be spread over the life
                           of the obligation.

              402  APPLICATION - APPROVAL:
                   402.1   The   Air   Pollution  Control   Officer   shall
                           determine the  completeness  of  the application
                           based on the requirements of this  rule,  within
                           90 days after submittal.
                   402.2   If  the Air Pollution Control Officer determines
                           that  the  application  is  complete,  and  that
                           actual  emissions reductions are generated, MERC
                           or  CAP  shall  be  issued  in  accordance  with
                           Section 403.
                   402.3   If the Air  Pollution Control Officer determines
                           that  the  application   is  not  complete,  the
                           applicant shall be notified  in  writing  of the
                           decision    and   specifying   the   information
                           required.
                   402.4   Upon  receipt   of   any   resubmittal   of  the
                           application,  a  new  90-day period to determine
                           completeness shall begin.  During the processing
                           of the application, the  Air  Pollution  Control
                           Officer  may  request  an  applicant to clarify,
                           amplify,  correct, or otherwise  supplement  the
                           information submitted in the application.
                   402.5   If the information  required pursuant to Section
                           402.3 is not submitted,  or if the Air Pollution
                           Control Officer determines that actual emissions
                           reductions are not achieved,  the  Air Pollution
                           Control Officer shall deny the application.


              403  ISSUANCE OF MERC CERTIFICATE:
                   403.1   If  an  obligation  is  exceeded, or if  clearly
                           demonstrated  actual  emissions  reductions  are
                           generated,  the  Air Pollution  Control  Officer
                           shall issue MERC Certificate(s)  to  the person,
                           company,   business,   organization,  or  public
                           entity generating the emission reduction, within
                           90  days  of  approval  of  the  application  as
                           complete.
                   403.2   The  Air Pollution Control Officer  shall  issue
                           one copy  of  the  MERC  Certificate to the MERC
                           owner(s)  by  mail  or  in  person.   Each  MERC
                           Certificate shall contain:
                           a)  Name  of  the  person,  company,   business,
                               organization,  or  public entity or to  whom
                               the MERC is issued.
                           b)  MERC Certificate identification number,
                           c)  Date of issuance,
                           d)  Amount of emission reduction  (in pounds per
                               year),
                           e)  Pollutant or pollutants reduced,
                           f)  Time period for which the credit is valid,
                           g)  A  statement  regarding  the possibility  of
                               invalidation  of  the  MERC Certificate  if,
                               upon  audit,  it is determined  by  the  Air
                               Pollution Control  Officer  that  the credit
                               was fraudulently acquired, and absolving the
                               District   from   any   liability  from  any
                               transaction involving the MERC Certificate.
                           h)  Life of the credit, and
                           i)  Signature   of   one  responsible   District
                               official.
                   403.3   No  MERC Certificate shall  be  issued  for  any
                           emission  reduction  activity which has received
                           an emission reduction  credit from this District
                           or   any   other   air   pollution/air   quality
                           management district.
                   403.4   CAP which have been placed in the escrow account
                           may  be converted to MERC once  they  have  been
                           matched with credits, pursuant to Section 406.
                   403.5   No MERC  shall  be  granted  for  fuel transfer,
                           refuelling, and evaporative emissions for heavy-
                           duty diesel-powered vehicles that are  converted
                           to operate on an alternative fuel

              404  REGISTRATION:
                   404.1   The  issuance of a MERC Certificate pursuant  to
                           Section 403 shall not constitute 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  MERC   represented   by   the   MERC
                           Certificate are available from the MERC Register
                           established by this rule.
                   404.2   A copy of  the  MERC Certificate issued shall be
                           maintained in the Register.
                   404.3   Multiple owners of  emission  reduction  credits
                           shall  be  separated  according  to  agreements,
                           filed with the District, between the owners with
                           one  MERC  Certificate issued to each owner  for
                           their respective portion.
                   404.4   Upon  transfer  of  MERC  between  parties,  the
                           transferor's  MERC  Certificate, and a copy of a
                           writing, signed by the  transferor and notarized
                           by    a    notary   public,   authorizing    and
                           memorializing  the  transfer  of the MERC 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 MERC.
                   404.5   Upon receipt and review of documents referred to
                           in  Section  404.4,  the  Air Pollution  Control
                           Officer  shall issue a new MERC  Certificate  in
                           the name of  the  transferee.  If fewer than all
                           of the transferor's  MERC are transferred, a new
                           Certificate shall be issued  to  the  transferor
                           showing  the  remaining MERC.  The District  may
                           refuse to recognize  any  transfer  of MERC that
                           does  not comply with the requirements  of  this
                           section.
                   404.6   The original MERC Certificate surrendered by the
                           registered  owner shall be filed in the Register
                           and marked with  the date of issuance of the new
                           MERC  Certificate(s),   the  number  of  credits
                           transferred,  and  the  new   MERC   Certificate
                           number(s).    If   fewer   than   all  MERC  are
                           transferred, the new balance and the name of the
                           original owner shall be entered in the Register.
              405  MERC REGISTER:
                   405.1   The Register shall contain all of the  following
                           information for each MERC Certificate issued  by
                           the Air Pollution Control Officer:
                           a)  Certificate identification number, and
                           b)  Date of issuance, and
                           c)  Name  and  address  of the registered owner,
                               and
                           d)  Amount of emissions reduction, in pounds per
                               year, and
                           e)  Source of the emission reduction(s); and
                           e)  Type of pollutant or pollutants reduced; and
                           f)  Date  of MERC issuance  and  its  expiration
                               date; and
                           g)  Status  of  the MERC (e.g. being used, held,
                               transferred, sold, etc.); and
                           h)  Proposed use  of  the credit, if applicable;
                               and
                           i)  Rule number under which  original obligation
                               is incurred; and
                           j)  Dollar value of the transaction.
                   405.2   Upon  notice of transfer of a MERC  Certificate,
                           the Air  Pollution  Control  Officer shall enter
                           the following information in the Register:
                           a)  Original MERC Certificate number, and
                           b)  New MERC Certificate number(s), and
                           c)  Name   and  address  of  new  owner(s),   if
                               applicable, and
                           d)  Number of MERC being transferred; and
                           e)  The remaining life of the MERC.
                   405.3   Upon the use  of MERC to meet an obligation, the
                           following information  shall be entered into the
                           Register by the Air Pollution Control Officer:
                           a)  All of the information  required  in Section
                               405.1, and
                           b)  The  date  that  the  MERC  Certificate  was
                               surrendered  to  the  Air Pollution  Control
                               Officer, and
                           c)  The name and address of owner or operator of
                               the business where the  MERC  are being used
                               to offset an obligation, and
                           d)  The amount of MERC being used to  offset  an
                               obligation.

              406  REGISTERING RATIO:
                   406.1   All MERC issued pursuant to this rule must issue
                           from the credit bank.
                   406.2   MERC which are registered will be converted at a
                           ratio of 1.3:1, and disbursed as follows:
                           a)   Ten-thirteenths (10/13) to the owner of the
                           MERC,
                           b)  Two-thirteenths  (2/13)  to the District for
                           air quality benefit, and
                           c)  One-thirteenth (1/13) to the escrow account.

              407  REGISTERING  RATIO TRACKING:  The Air Pollution  Control
                   Officer shall  maintain  records  of the disbursement of
                   all MERC to the owner(s) of the MERC,  to  the  District
                   for air quality benefit, and to the escrow account.

              408  RELEASE  OF  DOLLAR  VALUE:   On  an  annual  basis, the
                   District  shall disclose the range in dollar value  paid
                   for MERC/CAP,  excluding  information on the identity of
                   any party involved in the purchase of MERC/CAP.

              409  APPEALS:  If the Air Pollution Control Officer denies an
                   application pursuant to the  provisions  of Section 402,
                   any person, company, business, organization,  or  public
                   entity  having  made  the  application  may  appeal said
                   decision to the Hearing Board.

          500 MONITORING AND RECORDS:
              501  If  the provisions of this rule are used to satisfy  the
                   obligation  established  by any other District mobile or
                   indirect source rule, the  monitoring and record keeping
                   requirements of that rule apply  in this rule, as if set
                   forth in full.
              502  Records required by the Air Pollution Control Officer to
                   substantiate emissions reductions  under  a  contractual
                   agreement.
                                           
                                           APPENDIX  A

          COMPLIANCE OPTIONS:  The compliance options  approved  by the Air
          Pollution  Control  Officer  for generation of MERC, pursuant  to
          Section 401 are listed below.   The  District  Rule (if any) that
          governs   the  compliance  option  is  indicated  in  parenthesis
          following each option.

          1.  Introducing   REV/ALTERNATIVE   FUEL   into   a  business  or
              government  agency  that  is  not  regulated by Rule  1003  -
              REDUCED-EMISSION FLEET VEHICLES/ALTERNATIVE FUELS, subject to
              the  same terms and conditions of that  rule.  (Rule  1003  -
              REDUCED EMISSION FLEET VEHICLES/ALTERNATIVE FUELS)

          2.  Retrofitting  or  repowering  an existing base vehicle with a
              reduced-emission/alternative fuel  conversion  that  has been
              certified by the California Air Resources Board.  (Rule  1003
              - REDUCED EMISSION FLEET VEHICLES/ALTERNATIVE FUELS)

          3.  Providing enhanced inspection and maintenance of vehicles  on
              an  annual  basis.   (Rule  1003  -  REDUCED  EMISSION  FLEET
              VEHICLES/ALTERNATIVE FUELS)

          4.  Provide a program for the accelerated retirement of old cars.
              (Rule  1003  -  REDUCED  EMISSION  FLEET VEHICLES/ALTERNATIVE
              FUELS)

          5.  Elimination of vehicular trips (e.g.  telecommuting).   (Rule
              1001 - EMPLOYER COMMUTE ALTERNATIVES)

          6.  Purchasing  used  REV/ALTERNATIVE  FUEL  vehicles  that  have
              remaining MERC value, provided that they are not purchased in
              the  Sacramento  Air  Basin,  San  Joaquin Valley Unified Air
              Pollution  Control District, or the Bay  Area  Air  Pollution
              Control  District.   (Rule  1003  -  REDUCED  EMISSION  FLEET
              VEHICLES/ALTERNATIVE FUELS)

          7.  Other,  innovative,   sources   of  emissions  reductions  as
              approved  by  the Air Pollution Control  Officer,  which  are
              demonstrated to be actual emissions reductions.