SACAQMD RULE 206 MOBILE & TRANSP.SOURCE EMISS.REDUC.CREDITS          
LAST REVISED 12/15/92          

      SACRAMENTO METROPOLITAN AQMD                    RULES AND REGULATIONS
      RULE 206  MOBILE AND TRANSPORTATION SOURCE EMISSION REDUCTION CREDITS
     
                                         Adopted 12-15-92

                                        INDEX

          100  GENERAL
               101 PURPOSE
               102 APPLICABILITY

          200  DEFINITIONS
               201 ACTUAL EMISSION REDUCTIONS
               202 AFFECTED POLLUTANT
               203 BASE VEHICLE
               204 BURDEN
               205 DRIVEABLE
               206 EMFAC
               207 EMISSION REDUCTION CREDIT (ERC)
               208 EMISSIONS UNIT
               209 ENFORCEABLE
               210 FLEET
               211 HISTORIC ACTUAL EMISSIONS
               212 MAJOR STATIONARY SOURCE
               213 MAJOR MODIFICATION
               214 MOBILE SOURCE CONTROL MEASURE
               215 PERMANENT
               216 PROJECTED EMISSIONS
               217 QUANTIFIABLE
               218 STATIONARY SOURCE
               219 SURPLUS
               220 REAL
               221 REGISTER
               222 TRANSPORTATION CONTROL MEASURE

          300  STANDARDS
               301 CERTIFICATION OF CREDITS
               302 ADJUSTMENT OF CREDITS
               303 OTHER DISTRICT CREDITS

          400  ADMINISTRATIVE REQUIREMENTS
               401 INITIAL PLAN
               402 COMPLIANCE PLAN
               403 NEW VEHICLES
               404 REPLACEMENT VEHICLES
               405 CONVERSIONS
               406 COMMUTE ALTERNATIVES: TELECOMMUTING
               407 COMPLETE APPLICATION
               408 PRELIMINARY DECISION
               409 PUBLICATION AND PUBLIC COMMENT
               410 PUBLIC INSPECTION
               411 FINAL ACTION
               412 REGISTRATION
               413 CALCULATION OF EMISSIONS

          500  MONITORING AND RECORDS
               501 MONITORING
               502 RECORDKEEPING
          
          100  GENERAL

               101 PURPOSE:  To provide an administrative mechanism for the
                   review of emission  reduction  credits  from  control of
                   mobile  sources  and  transportation sources for deposit
                   and  registration  pursuant   to   Rule   204,  EMISSION
                   REDUCTION  CREDITS.   This  rule  is  also  intended  to
                   provide encouragement for development and implementation
                   of   innovative   control   methods   for   mobile   and
                   transportation sources.

               102 APPLICABILITY:  This rule shall apply to emissions units
                   subject to the requirements  of Rule 201, GENERAL PERMIT
                   REQUIREMENTS.   Emissions  units   at  major  stationary
                   sources   or  major  modifications  shall   additionally
                   receive approval from the EPA.

          200  DEFINITIONS

               201 ACTUAL EMISSION  REDUCTIONS:  Actual emission reductions
                   are real, enforceable, permanent, quantifiable, surplus,
                   and  shall  be   calculated  pursuant  to  Section  413,
                   Calculation of Emissions.

               202 AFFECTED POLLUTANTS:  Reactive  organic compounds (ROC),
                   nitrogen oxides (NOx), sulfur oxides  (SOx),  PM10,  and
                   carbon monoxide (CO).

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

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

               205 DRIVEABLE: Any vehicle that is street legal, licensed by
                   the   California   Department   of  Motor  Vehicles  (if
                   appropriate), and available for use and testing.

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

               207 EMISSION  REDUCTION   CREDIT   (ERC):  Actual  emissions
                   reductions  that  are registered with  the  District  in
                   accordance with the  requirements  of this rule and Rule
                   204, EMISSION REDUCTION CREDITS.

               208 EMISSIONS UNIT: An identifiable operation  or  piece  of
                   process  equipment such as an article, machine, or other
                   contrivance  which controls, emits, may emit, or results
                   in the emissions  of  any affected pollutant directly or
                   as fugitive emissions.

               209 ENFORCEABLE:  Verifiable   and   legally  binding.   All
                   limitations and permit conditions are enforceable by the
                   Administrator  of  the Environmental  Protection  Agency
                   (EPA), including those  requirements  developed pursuant
                   to  40CFR60  and  61,  those  requirements  within   the
                   applicable  State  Implementation  Plan,  and any permit
                   conditions established pursuant to permits either issued
                   by EPA or in accordance with an EPA approved  version of
                   this rule.

               210 FLEET:  Fifteen  (15)  or more active vehicles operating
                   within the District and  that are under common ownership
                   or  operation  and  are dispatched  from  at  least  one
                   location within the District.

               211 HISTORIC  ACTUAL EMISSIONS:  Actual  emissions  averaged
                   over the two  year period immediately preceding the date
                   of   application.    If   the   last   two   years   are
                   unrepresentative  of  normal operations as determined by
                   the  Air  Pollution  Control   Officer,   then  any  two
                   consecutive years of the last five years that  represent
                   normal  source  operation may be used.  If, at any  time
                   during the two year  period,  actual  emissions exceeded
                   allowed emission levels, then actual emissions  shall be
                   reduced  to  reflect  emission  levels  that  would have
                   occurred   if   in   compliance   with   all  applicable
                   limitations and rules.  If less than one year has passed
                   since  the  operation  of  the  mobile or transportation
                   source  within the District, then  the  historic  actual
                   emissions  shall  be  zero.  If less than two years have
                   passed   since   the  operation   of   the   mobile   or
                   transportation  source,   then   the   historic   actual
                   emissions  shall  be  the  actual emissions over the one
                   year   period   immediately  preceding   the   date   of
                   application.

               212 MAJOR  STATIONARY  SOURCE:  A  stationary  source  whose
                   potential  to  emit  exceeds  50  tons per year nitrogen
                   oxides, 50 tons per year of reactive  organic compounds,
                   100 tons per year of carbon monoxide, 100  tons per year
                   of  PM10,  or levels specified in the Clean Air  Act  of
                   1990, Section 112(a)(1).

               213 MAJOR MODIFICATION:  Modification  to a major stationary
                   source which results in an increase  in the potential to
                   emit greater than 25 tons per year of  nitrogen  oxides,
                   25 tons per year of reactive organic compounds, 100 tons
                   per year of carbon monoxide, or 15 tons per year of PM10
                   aggregated with all other increases in potential to emit
                   over  the  period  of  five consecutive years before the
                   application for modification  and including the calendar
                   year of the application.

               214 MOBILE SOURCE CONTROL MEASURE:  Any  strategy  to reduce
                   new   or   existing   motor  vehicle  emissions  through
                   additional control, disposal,  change of fuel, or energy
                   source.

               215 PERMANENT: The sum  of all credits  provided must endure
                   for  the life of the emissions unit using  the  credits.
                   Such time  period  shall be contained in and enforceable
                   by the Authority to Construct and Permit to Operate.

               216 PROJECTED EMISSIONS:  Emissions  for  a calendar quarter
                   based on the same operating characteristics  (e.g.  fuel
                   consumption,  operational  characteristics)  as historic
                   actual  emissions  for  the calendar quarter.  Projected
                   emissions  shall  be  adjusted  for  applicant  proposed
                   emission reduction strategies  (such  as fuel switching,
                   conservation measures, etc.) which reduce emissions to a
                   level below historic actual emissions.  Such adjustments
                   shall  only  be  made  to  the extent that the  emission
                   reduction  credits  generated   are   allowed   by   all
                   applicable  rules  and  regulations.  In cases where the
                   proposal includes an increase in the number of vehicles,
                   mileage, etc., projected  emissions  shall be determined
                   based on the characteristics of the proposed  mobile  or
                   transportation source and its use.

               217 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.

               218 STATIONARY SOURCE:   Any  building, structure, facility,
                   or emissions unit which emits  or  may emit any affected
                   pollutant directly or as a fugitive emission.
                   218.1 Building, structure, facility,  or  emissions unit
                         includes all pollutant emitting activities which:
                         a.   belong to the same industrial grouping, and
                         b.   are located on one property or on two or more
                              contiguous properties, and
                         c.   are  under  the  same  or  common  ownership,
                              operation,  or control or which are owned  or
                              operated by entities  which  are under common
                              control.
                   218.2 Pollutant emitting activities shall  be considered
                         as part of the same industrial grouping if:
                         a.   they  belong  to the same two-digit  standard
                              industrial classification code, or
                         b.   they are part of a common production process.
                              (Common    production     process    includes
                              industrial processes, manufacturing processes
                              and  any  connected  processes   involving  a
                              common material.)

               219 SURPLUS:  Emission reductions in excess of any  emission
                   reduction which is:
                   219.1 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
                   219.2 attributed  to   a  control  measure  noticed  for
                         workshop in the District, or proposed or contained
                         in a State Implementation Plan, or
                   219.3 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.
                   219.4 Emissions  reductions  attributed  to  a  proposed
                         control measure may be re-eligible  as  a  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 public 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.

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

               221 REGISTER:  The  document  that records all ERC deposits,
                   withdrawals, transfers, and transactions.

               222 TRANSPORTATION CONTROL MEASURE:  Any  strategy to reduce
                   vehicle  trips,  vehicle  use,  vehicle miles  traveled,
                   vehicle idling, or traffic congestion for the purpose of
                   reducing motor vehicle emissions.

          300  STANDARDS

               301 CERTIFICATION OF CREDITS: A stationary source may obtain
                   credits for actual emission reductions  from one or more
                   mobile   or   transportation   source  control  measures
                   provided:
                   301.1 An  Initial  Plan  and  Compliance  Plan  prepared
                         pursuant to Sections 401  and  402 are approved in
                         writing by the Air Pollution Control  Officer  and
                         for    major    stationary   sources   and   major
                         modifications by the EPA, and
                   301.2 Plans prepared pursuant  to  Sections 401, and 402
                         are   implemented   according  to  the   schedules
                         contained therein, and
                   301.3 The Authority to Construct  and  Permit to Operate
                         for  the  emissions  unit are both conditioned  to
                         require   continuous   implementation    of    and
                         compliance  with specified plans prepared pursuant
                         to Sections 401, and 402.
                   301.4 Credits  shall   be   certified  pursuant  to  the
                         requirements  of  Rule  204,   EMISSION  REDUCTION
                         CREDITS.

               302 ADJUSTMENT OF CREDITS: If audits performed  pursuant  to
                   Section   402,  Compliance  Plan,  shows  that  emission
                   reductions are not being achieved as quantified pursuant
                   to Section  401,  Initial  Plan, then emission reduction
                   credits  shall be adjusted to  reflect  actual  emission
                   reductions   achieved.   Written  notification  of  such
                   adjustment shall  be  provided to the source and user of
                   the emission reduction  credits.   If  such credits have
                   been  used by a stationary source, then such  stationary
                   source  shall  provide additional emission reductions as
                   required by Rule 202, NEW SOURCE REVIEW.

               303 OTHER  DISTRICT  CREDITS:   The   use   of   mobile  and
                   transportation  source emission reductions from  outside
                   the District are prohibited.

          400  ADMINISTRATIVE REQUIREMENTS

               401 INITIAL PLANS: A  plan  detailing  the  process shall be
                   prepared to qualify the actual emission reductions  from
                   implementation  of  a  mobile  source  or transportation
                   control  measure.   The  Initial Plan shall  demonstrate
                   that  the  emission  reductions   are   real,   surplus,
                   quantifiable,  enforceable,  permanent and shall include
                   data and methods for quantifying  the  actual   emission
                   reductions for all affected pollutants, specify the life
                   of   the   actual   emission  reductions,  quantify  any
                   increases in emissions  projected to occur over the life
                   of   the  actual  emission  reductions,   and   identify
                   requirements  or  encumbrances as defined in Section 219
                   for  the  specified  life   of   the   actual   emission
                   reductions.

               402 COMPLIANCE  PLAN:  A  plan  detailing  the  process  for
                   confirming  the  actual  emission  reductions  shall  be
                   submitted  for  approval  of  the  Air Pollution Control
                   Officer.  The Compliance Plan shall  include  but not be
                   limited to all of the following elements:
                   402.1 Records:   The   Compliance  Plan  shall  identify
                         records  which confirm  projections  made  in  the
                         Initial Plan,  and procedures for maintaining such
                         records.
                   402.2 Audits: Audits performed  on  a  regular basis, at
                         the   expense   of   the  stationary  source,   by
                         independent contractors to verify records, perform
                         emissions   testing   and    sampling,   calculate
                         emissions, and to verify continued  implementation
                         of   the  control  strategy  and  actual  emission
                         reductions.    Results  of  all  audits  shall  be
                         submitted to the Air Pollution Control Officer for
                         review and approval.
                   402.3 Contract:  A  contractual  agreement  between  the
                         stationary source  and  the  District  stating the
                         consequences    for   not   complying   with   all
                         requirements of the  Initial  Plan  and Compliance
                         Plan.   Such  a  contract  shall  not  limit   the
                         District's  enforcement  options as provided under
                         District,  state,  or  federal   laws,   rules  or
                         regulations.

               403 NEW  VEHICLES:  For purposes of compliance with Sections
                   401  and 402 for actual  emission  reductions  from  the
                   addition  of  lower  emitting  fleet  vehicles to new or
                   existing fleets:
                   403.1 Initial Plans  shall include, but  not  be limited
                         to the following:
                         a.   Current  number  of  fleet vehicles, proposed
                              number  of new, lower emitting  vehicles  for
                              specified  weight class; passenger car, light
                              duty truck,  medium  duty  vehicle,  or heavy
                              duty  vehicle  (engine)  as  defined  in  the
                              California  Code  of  Regulations  Title  13,
                              Section 1900.
                         b.   Emission rate for all affected pollutants and
                              the  corresponding  emission standard for the
                              new vehicle as specified  in  the appropriate
                              section    of   the   California   Code    of
                              Regulations,  Title  13,  Section  1960.1  or
                              1956.8.
                         c.   Emission standard for the base vehicle of the
                              same   vehicle   class  and  model  year,  as
                              specified in the appropriate  section  of the
                              California  Code  of  Regulations  Title  13,
                              Section 1960.1 or 1956.8.
                         d.   Quarterly   emission   projections   for  all
                              affected  pollutants for the new vehicle  and
                              base vehicle  using  the  latest  version  of
                              transportation   models,  EMFAC  and  BURDEN,
                              based  on  the emission  rate  estimates  and
                              standards provided  in  Section  403.1.c  and
                              403.1.d.   Where  EMFAC  and  BURDEN  are not
                              applicable,   provide  written  analysis  and
                              justification for  other  estimates including
                              methodology,   data,   and  assumptions   for
                              approval   of   the  Air  Pollution   Control
                              Officer.
                         e.   Mileage  projections   for   lower   emitting
                              vehicle  use  within  the air basin expressed
                              quarterly.
                         f.   Fuel usage projections  for  each  fuel  type
                              expressed quarterly.
                         g.   Projections   for   new   vehicle  life,  and
                              projected  increases  in emissions  over  the
                              vehicle life due to engine  wear, degradation
                              of controls, and other causes.
                         h.   Identify  requirements  or  encumbrances   as
                              defined in Section 219 for the specified life
                              of the actual emission reductions.
                         i.   Estimation   of  actual  emission  reductions
                              utilizing the  aforementioned assumptions and
                              data.
                   403.2 Compliance Plans shall include, but not be limited
                         to the following:
                         a.   Monthly records compiled quarterly of mileage
                              inside and outside  the air basin, fuel usage
                              by fuel type, vehicle  maintenance records.
                         b.   Audits performed on a regular basis to verify
                              records,  perform  actual  vehicle  emissions
                              testing, fuel sampling,  and calculate actual
                              emission reductions.  Results  from emissions
                              testing  shall  not  be  used  to adjust  the
                              actual   emission   reductions  pursuant   to
                              Section 302.  Audit reports shall be prepared
                              and submitted to the District summarizing the
                              results.
                         c.   A   contractual   agreement    between    the
                              stationary  source  and  the District stating
                              the consequences for not complying  with  all
                              requirements  of  the  Initial and Compliance
                              Plans,  including the provisions  of  Section
                              302, Adjustment  of Credits.  Such a contract
                              shall  not limit the  District's  enforcement
                              options as provided under District, state, or
                              federal laws, rules or regulations.

               404 REPLACEMENT VEHICLES:  For  purposes  of compliance with
                   Sections 401 and 402 for actual emission reductions from
                   the replacement of existing fleet vehicles  with cleaner
                   burning vehicles:
                   404.1 Initial  Plans  shall include, but not be  limited
                         to the following:
                         a.   Current  number  of  fleet vehicles, proposed
                              number of new, lower emitting  vehicles,  and
                              proposed  number  of  vehicles  being removed
                              from service.  Specify the weight  class  for
                              each  of  the aforementioned items; passenger
                              car, light  duty  truck, medium duty vehicle,
                              or heavy duty vehicle  (engine) as defined in
                              the California Code of Regulations, Title 13,
                              Section 1900.
                         b.   Emission rate for all affected pollutants and
                              the  corresponding  emission   standard   for
                              vehicles   being  removed  from  service,  as
                              specified in  the  appropriate section of the
                              California  Code  of Regulations,  Title  13,
                              Section 1960.1 or 1956.8.
                         c.   Emission rate for all affected pollutants and
                              the corresponding emission  standard  for the
                              new lower emitting vehicle and a base vehicle
                              of the same vehicle class and model year,  as
                              specified  in  the appropriate section of the
                              California Code  of  Regulations,  Title  13,
                              Section 1960.1 or 1956.8.
                         d.   Quarterly   emission   projections   for  all
                              affected   pollutants   for   the  new  lower
                              emitting  vehicles, base  vehicles,  and  the
                              vehicles being  replaced,  using  the  latest
                              version  of transportation models, EMFAC  and
                              BURDEN,  based   on  emission  rate  estimate
                              provided  in  Section  404.1.b  and  404.1.c.
                              Where EMFAC and  BURDEN  are  not  applicable
                              provide  written  analysis  and justification
                              for  other  estimates including  methodology,
                              data, and assumptions for approval of the Air
                              Pollution Control Officer.
                         e.   Mileage  projections   for  new  vehicle  use
                              within  the  Sacramento  Valley   air   basin
                              expressed    quarterly.     Actual   odometer
                              readings for the vehicle being replaced.
                         f.   Fuel  usage  projections for each  fuel  type
                              expressed quarterly.
                         g.   Average age of  the  existing  vehicle fleet,
                              and  projections  for new vehicle  life,  and
                              projected increases  in  emissions  over  the
                              vehicle  life  due  to  depreciation,  engine
                              wear,  degradation  of  controls,  and  other
                              causes.
                         h.   Identify   requirements  or  encumbrances  as
                              defined in Section 219 for the specified life
                              of the actual emission reductions.
                         i.   Estimation  of   actual  emission  reductions
                              utilizing the aforementioned assumptions.

                         j.   California  Department   of   Motor  Vehicles
                              vehicle  registration for the vehicles  being
                              replaced for  two  years prior to the date of
                              replacement.  Vehicles  not registered within
                              the  District  are not eligible  for  use  as
                              emission   reduction   credits   within   the
                              District unless records demonstrating the use
                              of vehicles within the District are submitted
                              to,  verified,   and   approved  by  the  Air
                              Pollution    Control    Officer.     Emission
                              reduction  credits  are  not   eligible   for
                              vehicles unless such vehicles are driveable.
                   404.2 Compliance Plans shall include, but not be limited
                         to the following:
                         a.   Monthly records compiled quarterly of mileage
                              inside  and outside the Sacramento Valley air
                              basin,  fuel  usage  by  fuel  type,  vehicle
                              maintenance records.
                         b.   Audits performed on a regular basis to verify
                              records,  perform  actual  vehicle  emissions
                              testing, fuel sampling, and calculate  actual
                              emission  reductions.  Results from emissions
                              testing shall  not  be  used  to  adjust  the
                              actual   emission   reductions   pursuant  to
                              Section 302. Audit reports shall be  prepared
                              and submitted to the District summarizing the
                              results.
                         c.   Certification   of   vehicles   taken  out-of
                              service,   and   that   such   vehicles  were
                              driveable   at  the  time  of  removal   from
                              service.
                         d.   A   contractual    agreement    between   the
                              stationary  source  and the District  stating
                              the consequences for  not  complying with all
                              requirements  of the Initial  and  Compliance
                              Plans.  Such a  contract  shall not limit the
                              District  enforcement  options   as  provided
                              under District, state, or federal laws, rules
                              or regulations.

               405 CONVERSIONS:  For  purposes of compliance with  Sections
                   401  and 402 for actual  emission  reductions  from  the
                   conversion  of existing fleet vehicles to lower emitting
                   fleet vehicles:
                   405.1 Initial  Plans   shall include, but not be limited
                         to the following:
                         a.   Proposed  number   of   vehicles   undergoing
                              conversion  for  a  specified  weight  class;
                              passenger car, light duty truck, medium  duty
                              vehicle,  or  heavy  duty vehicle (engine) as
                              defined   in   the   California    Code    of
                              Regulations, Title 13, Section 1900.
                         b.   Proposed   emission  rate  for  all  affected
                              pollutants of  converted  vehicles  from  ARB
                              certification test data.
                         c.   Emission  rate of all affected pollutants and
                              emission standard  for an unconverted vehicle
                              of the same vehicle  class and model year, as
                              specified in the appropriate  section  of the
                              California  Code  of  Regulations, Title, 13,
                              Section 1960.1 or 1956.8.
                         d.   Quarterly   emission  projections   for   all
                              affected   pollutants   for   the   converted
                              vehicles and  unconverted vehicles, using the
                              latest  version   of  transportation  models,
                              EMFAC  and  BURDEN, based  on  emission  rate
                              estimate  provided  in  Section  405.1.b  and
                              405.1.c.  Where  EMFAC  and  BURDEN  are  not
                              applicable   provide   written  analysis  and
                              justification for other  estimates  including
                              methodology,   data,   and   assumptions  for
                              approval   of   the  Air  Pollution   Control
                              Officer.
                         e.   Actual mileage and trip records for two years
                              prior  to  conversion   for  use  within  the
                              Sacramento   Valley   air   basin   expressed
                              quarterly.    If  the  last  two  years   are
                              unrepresentative   of  normal  operations  as
                              determined  by  the  Air   Pollution  Control
                              Officer,  then any two consecutive  years  of
                              the last five  years,  that  represent normal
                              source operation, may be used.
                         f.   Average  age  of the existing vehicle  fleet,
                              projections for  lower emitting vehicle life,
                              and projected increases in emissions over the
                              vehicle life due to  engine wear, degradation
                              of controls, and other causes.
                         g.   Identify  requirements   or  encumbrances  as
                              defined in Section 219 for the specified life
                              of the actual emission reductions.
                         h.   Estimation  of  actual  emission   reductions
                              utilizing the aforementioned projections.
                   405.2 Compliance Plans shall include, but not be limited
                         to the following:
                         a.   Monthly records compiled quarterly of mileage
                              inside and outside the Sacramento Valley  air
                              basin,  fuel  usage  by  fuel  type,  vehicle
                              maintenance records.
                         b.   Annual    inspection   and   maintenance   of
                              emissions.
                         c.   Audits performed on a regular basis to verify
                              records,  perform  actual  vehicle  emissions
                              testing, fuel  sampling, and calculate actual
                              emission reductions.   Results from emissions
                              testing  shall  not  be used  to  adjust  the
                              actual   emission  reductions   pursuant   to
                              Section 302.  Audit reports shall be prepared
                              and submitted to the District summarizing the
                              results.
                         d.   A   contractual    agreement    between   the
                              stationary  source  and the District  stating
                              the consequences for  not  complying with all
                              requirements  of the Initial  and  Compliance
                              Plans.  Such a  contract  shall not limit the
                              District  enforcement  options   as  provided
                              under District, state, or federal laws, rules
                              or regulations.

               406 COMMUTE  ALTERNATIVES:  TELECOMMUTING:  For purposes  of
                   compliance with Sections 401 and 402 for actual emission
                   reductions  from  the  reduction in commute  trips  from
                   telecommute options:
                   406.1 Initial Plans  shall  include,  but not be limited
                         to the following:
                         a.   Current  trips of commuters participating  in
                              the program  for  two  years  prior including
                              vehicle miles traveled, number  of  trips per
                              month,  time  required  for  travel  or other
                              congestion estimation method, ridership,  and
                              vehicle   weight  class  as  defined  in  the
                              California  Code  of  Regulations,  Title 13,
                              Section  1900.   If  the  last two years  are
                              unrepresentative  of  normal   operations  as
                              determined  by  the  Air  Pollution   Control
                              Officer,  then  any two consecutive years  of
                              the last five years,  that  represent  normal
                              operations, may be used.
                         b.   Emission   standards  for  specified  vehicle
                              class and model year of vehicles as specified
                              in the appropriate  section of the California
                              Code of Regulations, Title 13, Section 1960.1
                              or 1956.8.
                         c.   Proposed trips of commuters  participating in
                              the program including vehicle miles traveled,
                              number of trips per month, time  required for
                              travel or other congestion estimation method,
                              and ridership.
                         d.   Estimation   of  actual  emission  reductions
                              utilizing the aforementioned assumptions.
                         e.   Identify  requirements   or  encumbrances  as
                              defined in Section 219 for the specified life
                              of the actual emission reductions.
                   406.2 Compliance Plans shall include, but not be limited
                         to the following:
                         a.   A contractual agreement between  employer and
                              employee program participants.
                         b.   Contingency   measures   for   dealing   with
                              shortfalls in actual emission reductions.
                         c.   Monthly  records compiled quarterly of actual
                              telecommuting activity, including information
                              regarding the actual number of trips made and
                              number of trips reduced.
                         d.   Audit reports  submitted  on  a regular basis
                              for  records,  and  telecommuting   activity,
                              including  information  regarding  the actual
                              number  of  trips  made  and  number of trips
                              reduced.
                         e.   A    contractual   agreement   between    the
                              stationary  source  and  the District stating
                              the consequences for not complying  with  all
                              requirements  of  the  Initial and Compliance
                              Plans.  Such a contract  shall  not limit the
                              District   enforcement  options  as  provided
                              under District, state, or federal laws, rules
                              or regulations.

               407 COMPLETE APPLICATION:  The Air Pollution Control Officer
                   shall   determine   whether    the    application    for
                   certification  of  credits is complete not later than 30
                   days after receipt of  the  application,  or  after such
                   longer  time as both the applicant and the Air Pollution
                   Control Officer  have  agreed  in  writing.   If the Air
                   Pollution    Control   Officer   determines   that   the
                   application is  not  complete,  the  applicant  shall be
                   notified  in  writing  of  the  decision  specifying the
                   information required.  Upon receipt of any  re-submittal
                   of  the  application,  a  new 30-day period to determine
                   completeness   shall   begin.     Completeness   of   an
                   application   or  re-submitted  application   shall   be
                   evaluated on the  basis  of the information requirements
                   set forth in District regulations  (adopted  pursuant to
                   Article  3,  65940  through  65944  of  Chapter  4.5  of
                   Division l of Title 7 of the California Government Code)
                   as  they  exist on the date on which the application  or
                   re-submitted   application   was   received.    The  Air
                   Pollution Control Officer may, during the processing  of
                   the   application,  request  an  applicant  to  clarify,
                   amplify,    correct,   or   otherwise   supplement   the
                   information submitted in the application.

               408 PRELIMINARY  DECISION:   Following   acceptance   of  an
                   application  as  complete,  the  Air  Pollution  Control
                   Officer   shall  perform  the  evaluations  required  to
                   determine compliance  with all applicable District rules
                   and regulations and make a preliminary written decision.
                   The decision shall be supported  by  a  succinct written
                   analysis.   In  making  a  decision,  the Air  Pollution
                   Control  Officer  may  consider  the overall  effect  of
                   emission  increases  and  decreases  of   all   affected
                   pollutants.   The  Air  Pollution  Control  Officer  may
                   discount   emission   reduction   credits   if  emission
                   increases are anticipated for other affected pollutants.

               409 PUBLICATION  AND  PUBLIC COMMENT:   Within ten  calendar
                   days following a preliminary decision, the Air Pollution
                   Control Officer shall publish, in at least one newspaper
                   of general circulation in the District, a notice stating
                   the preliminary decision  of  the  Air Pollution Control
                   Officer,  noting  how the pertinent information  can  be
                   obtained, and inviting  written  public  comment  for  a
                   30-day period following the date of publication.

               410 PUBLIC  INSPECTION:   Except as provided in Section 110,
                   the Air Pollution Control  Officer  shall make available
                   for  public  inspection  at  the Air Quality  Management
                   District's  office  the  information  submitted  by  the
                   applicant  and  the  Air  Pollution   Control  Officer's
                   analysis  no  later  than  the  date the notice  of  the
                   preliminary decision is published,  pursuant  to Section
                   408.  Information submitted which contains trade secrets
                   shall  be  handled in accordance with Section 6254.7  of
                   the California  Government Code and relevant sections of
                   the California Administrative  Code.   Further, all such
                   information shall be transmitted no later  than the date
                   of publication to the California Air Resources Board and
                   the US Environmental Protection Agency regional  office,
                   and to any party which requests such information.

               411 FINAL  ACTION:  The  Air Pollution Control Officer shall
                   not  make  a  final  determination   of  the  amount  of
                   reductions  achieved  under  an Initial Plan  until  the
                   Initial Plan has been implemented  for  60 days.  Within
                   45  days after the required implementation  period,  the
                   Air Pollution  Control Officer shall issue a conditional
                   approval  or  denial   based   on  the  actual  emission
                   reductions  achieved  during the implementation  period.
                   Further, the California  Air  Resources Board and the US
                   Environmental Protection Agency  regional office, and to
                   any  party  which  requests such information,  shall  be
                   notified of final action.

               412 REGISTRATION: Following  preparation  and implementation
                   of an Initial Plan and Compliance Plan  and verification
                   that   the   proposed  emission  reductions  have   been
                   implemented in  accordance  with  the provisions of this
                   rule  to the satisfaction of the Air  Pollution  Control
                   Officer,  the  Air Pollution Control Officer shall issue
                   the ERC Certificate  according  to  the  procedures  and
                   requirements established in Rule 204, EMISSION REDUCTION
                   CREDITS.

               413 CALCULATION  OF  EMISSIONS:  Actual  emission reductions
                   shall be calculated pursuant to the following procedures
                   and shall use information submitted pursuant to Sections
                   401, 403.1, 404.1, 405.1 or 406.1:
                   413.1 Actual emission reductions shall be calculated for
                         each calendar quarter by subtracting the projected
                         emissions from historical actual  emissions.   Any
                         positive  value shall qualify for conversion to an
                         emission reduction  credit.   For  the purposes of
                         calculating   emission   reductions  pursuant   to
                         Section 403, projected emissions  from  the  lower
                         emitting  vehicle  will  be  subtracted  from  the
                         projected emissions from the base vehicle.
                   413.2 Credits  for particulate matter emission reduction
                         credits shall be expressed in terms of PM10.
                   413.3 Credits  for  nitrogen  oxides,  reactive  organic
                         compounds, carbon monoxide, sulfur oxides and PM10
                         shall  be  quantified   in   terms  of  pounds  of
                         pollutants per quarter for each calendar quarter.

          500  MONITORING AND RECORDS

               501 MONITORING:  The  Air  Pollution  Control   Officer  may
                   require  at  any  time  monitoring or testing to  ensure
                   compliance with the provisions of this rule.

               502 RECORDKEEPING: Any persons  subject  to  this rule shall
                   maintain  records  required  by  the  Initial  Plan  and
                   Compliance  Plan or for compliance with Section 501  for
                   two years and  make them available for review by the Air
                   Pollution Control Officer upon request.