VENAPCD RULE 26.5 NEW SOURCE REVIEW - COMMUNITY BANK

LAST REVISED 12/22/92





Rule 26.5 New Source Review - Community Bank (Adopted

10/22/91, Revised 12/22/92)

A. Applicability

This rule provides for the banking, by the District, of

emission reductions of reactive organic compounds (ROC) and

nitrogen oxides (NOx) as community emission reduction

credits and the disbursement of these credits.

B. Eligibility of Emission Reductions for Community Banking

1. The Air Pollution Control Officer (APCO) shall only

certify emission reductions as community emission

reduction credits if there is reasonable evidence to

determine that the reduction is real, quantifiable,

permanent, enforceable, and surplus.

2. If an emission reduction at a stationary source makes

all or part of a community emission reduction credit

eligible for return to the community bank, such credit

shall only be eligible for return to the community bank

and shall not be eligible for banking pursuant to Rule

26.4. In addition, community emission reduction

credits shall not be transferable except in the case

where a Permit to Operate is transferred pursuant to

Rule 20.

C.Community Bank Funding

1. The following emission reductions shall be banked as

community emission reduction credits:

a. The discounted portion of any emission reduction

resulting from a reduction in throughput for an

emissions unit or the shutdown of an emissions

unit which is discounted pursuant to Rule

26.4.C.1.

b. The discounted portion of any emission reduction

resulting from the application of control

equipment, a modified emissions unit or the

replacement of an emissions unit with a lower

emitting emissions unit which is discounted

pursuant to Rule 26.4.C.2.

c. The portion of any emission reduction credit

which is used as an offset at a tradeoff ratio

greater than 1.0, as required pursuant to Rule

26.2.B.3.

d. Any emission reduction resulting from a shutdown

of an emissions unit which is not banked pursuant

to Rule 26.4, provided the requirements of

subsection B.1 are satisfied.

e. The discounted portion of any existing emission

reduction credit which is discounted pursuant to

Rule 26.4.G.1.

2. Any community emission reduction credits which are

returned to the community bank pursuant to subsection

F.7 or Rule 26.6.E.4.d, shall be banked as community

emission reduction credits.

D. Eligibility to Use the Community Bank or Priority Reserve

1. Stationary sources where the potential to emit from

the stationary source would be less than the limits

specified in Table D-1, shall be eligible for access to

the community bank.

Table D-1.

ROC 5.0 ton/yr

NOx 5.0 ton/yr

2. Essential public services for which the applicant has

provided the maximum amount of required offsets by

modifying equipment or processes at the stationary

source, shall be eligible for access to the community

bank.

3. If an applicant holds any emission reduction credits,

access to the community bank shall not be allowed

unless the applicant is proposing to provide such

credits as offsets in the same permitting action where

access to the community bank is proposed.

E. Allocation of Community Emission Reduction Credits

1. For each of the first two allocation years the yearly

allocation of community emission reduction credits

shall be equal to 25 percent of the initial community

bank balance. The first allocation year shall begin on

November 1, 1991. Thereafter, allocation years shall

run from November 1 to October 31. The initial

community bank balance shall be equal to the discounted

portion of all existing emission reduction credits

which are discounted pursuant to Rule 26.4.G.1.

2. The monthly allocation of community emission

reduction credits shall be no less than one twelfth of

the yearly allocation. The monthly allocation for

October 1991 shall be prorated based on the number of

days remaining in the month after this Rule is adopted.

3. If the amount of community emission reduction credits

being deposited into the community bank is exceeding

the amount of credits being allocated during an

allocation year, these additional credits shall be

shall be eligible for allocation during that allocation

year or may be carried over for allocation in a later

year.

4. No later than 60 days after the end of an allocation

year the APCO shall report to the Ventura County Air

Pollution Control Board regarding the status of the

community bank credit balances. If the community bank

is disbursing more credits than are being deposited

into the community bank during an allocation year such

report shall specify recommended action to correct this

problem. If the recommended action includes revising

Rule 26 the District shall revise the rule no later

than one year after the end of such allocation year.

F. Disbursement of Community Emission Reduction Credits

1. The APCO shall make available, at the District

office, on the first Wednesday of each month the amount

of each pollutant available for disbursement during the

month. The amount of community emission reduction

credits available for disbursement during a month shall

be equal to the monthly allocation for such month.

2. Disbursements of community emission reduction credits

shall be made on the fourth Wednesday of each month.

An applicant whose application is deemed complete on or

before the second Wednesday of a month shall be

eligible to receive community emission reduction

credits during such month. An applicant whose

application is deemed complete after the second

Wednesday of a month shall be eligible to receive

community emission reduction credits during the

following month.

3. During any month for which there are more requests

for community emission reduction credits than are

available for disbursement during the month, priority

shall be given as follows:

a. First, to essential public services. During any

month for which there are more requests for

community emission reduction credits for essential

public services than are available for

disbursement during the month, priority shall be

given to the application which was deemed complete

the earliest. Notwithstanding the previous

sentence, the Ventura County Air Pollution Control

Board may determine that a specific essential

public service shall be given priority for access

to the community bank based on public health or

safety regardless of the date on which the

application was deemed complete.

b. Second, to stationary sources eligible for

access to the community bank pursuant to

subsection D.1. During any month for which there

are more requests for community emission reduction

credits than are available for disbursement during

the month, priority shall be given to the

applicants with the lowest accumulated total

emissions. For applicants with the same

accumulated total emissions, priority shall be

given to the application which was deemed complete

earliest. The accumulated total emissions (ATE)

shall be calculated as follows:

ATE = RROC + PROC + RNOx + PNOx

where:

RROC = amount of ROC community emission

reduction credits requested in tons per

year.

PROC = amount of ROC community emission

reduction credits previously received from

the community bank in tons per year

RNOx = amount of NOx community emission

reduction credits requested in tons per

year.

PNOx = amount of NOx community emission

reduction credits previously received from

the community bank in tons per year

c. Third, to stationary sources eligible for access

to the community bank pursuant to subsection D.1,

and for which the requested community emissions

reduction credits would be used as offsets for an

emissions unit for which an Authority to Construct

or Permit to Operate was required but not

obtained. During any month for which there are

more requests for community emission reduction

credits than are available for disbursement during

the month, priority shall be given to the

applicants with the lowest accumulated total

emissions. For applicants with the same

accumulated total emissions, priority shall be

given to the application which was deemed complete

earliest.

4. If community emission reduction credits are not

disbursed to an applicant during the initial month in

which the applicant is eligible to receive credits, the

application shall be held for consideration for five

additional months. If community emission reduction

credits are not received during the sixth month, the

application shall expire unless the applicant requests

an extension. Such request for an extension shall be

made in writing and shall be submitted to the APCO no

later than 15 days after notice, by the APCO, of such

expiration. Extensions shall be valid for six months

and shall be renewable. An applicant who has submitted

an application requesting community emission reduction

credits may at any time elect to provide offsets

pursuant to Rule 26.2.B.4.

5. Essential public services may reserve community

emission reduction credits to allow multi-year projects

to be planned. The reservation of any community

emission reduction credits pursuant to this subsection

shall be subject to the approval of the Ventura County

Air Pollution Control Board. When approving such

reservation, the Ventura County Air Pollution Control

Board shall consider whether the project is consistent

with the growth projections in the most recently

adopted version of the Ventura County Air Quality

Management Plan. An application for an Authority to

Construct which proposes to utilize such reserved

credits shall be submitted to the District within two

years after the date on which such reservation is

approved by the Ventura County Air Pollution Control

Board. If such application is not submitted on or

before the required date, the reservation shall be

canceled. The APCO shall take into account the amount

of community emission reduction credits reserved

pursuant to this subsection when determining yearly

allocations of community emission reduction credits.

6. Any community emission reduction credits that are not

disbursed during a month may, at the discretion of the

APCO, be made available for disbursement in the

following month.

7. Community emission reduction credits shall be

returned to the community bank under the following

conditions:

a. Construction has not started prior to the

expiration of an Authority to Construct. In this

case all community emission reduction credits

which were granted to obtain the Authority to

Construct shall be returned.

b. The voluntary surrender or the revocation of an

Authority to Construct or Permit to Operate. In

this case all community emission reduction credits

which were granted to obtain the Authority to

Construct or Permit to Operate shall be returned.

c. The potential to emit for a stationary source,

which is not an essential public service, exceeds

the limits specified pursuant to Table D.1, within

5 years of being granted community emission

reduction credits. In this case all community

emission reduction credits which were granted to

the stationary source, for the pollutant for which

the limit is exceeded, shall be returned. The

applicant shall provide offsets to replace these

returned community emission reduction credits

pursuant to Rule 26.2.B.3.

G. Limitations on the Usage of Community Emission Reduction

Credits

Community emission reduction credits which result from the

shutdown of an emissions unit, or a reduction in throughput

for an emissions unit, shall not be used as offsets at a

essential public service where the potential to emit would

exceed the limits specified in Table G-1.

Table G-1

ROC 25.0 ton/yr

NOx 25.0 ton/yr



H. Recordkeeping Requirements

1. Any stationary source that has been granted community

bank emission reduction credits shall maintain records

showing the cumulative amount of all community emission

reduction credits granted from or returned to the

community bank.

2. The District shall maintain records showing any

stationary source which has been granted community

emission reduction credits and the amount of such

credit granted from and returned to the community bank.