San Luis Obispo County APCD 212-1 8/10/93

RULE 212. COMMUNITY BANK (Adopted 11/5/91; Revised 8/10/93)

A. RESERVED

B. APPLICABILITY

1. This rule shall apply to all applications for use o f Community Bank Credits (CBC's).

2. Disbursements from the Community Bank shall be avai lable to the extent allowed pursuant to subsections D and E, to a replacement, modified, or relocated stationary source classified as a small business, a s defined in Rule 105, where the cumulative yearly potential to emit increase since August 10, 1993 will be less than two tons each per year of NOx, ROG, SOx and PM 10 after construction, modification, or relocation.

3. Essential Public Services will be qualified to draw from the Community Bank, provided the applicant has secured all potential of fsets available by modifying emission units at the same stationary source.

C. FUNDING

1. The Community Bank shall be funded with actual emis sion reductions which are in excess of those reductions required or encumbere d by local, state, and federal requirements. In addition, emission reductions sha ll be real, quantifiable, permanent, enforceable, and surplus.

2. Funding for the Community Bank shall include, but n ot be limited to, the discounting of emission reduction credits pursuant to Rule 211 for new and

modified emission units.

D. COMMUNITY BANK CREDIT AVAILABILITY AND ALLOCATION

1. On or before the last day of each calendar quarter, the Air Pollution Control Officer (APCO) shall determine the amount of emissi on reductions which are available from the Community Bank.

2. The APCO shall make available on the first Wednesda y of each calendar quarter the amounts of each pollutant available from the co mmunity bank.

3. Disbursement of emission reductions from the Commun ity Bank shall be made on the last Wednesday of each calendar quarter or othe r schedule deemed practicable by the Air Pollution Control Officer for applicatio ns meeting the specifications of

B.2.San Luis Obispo County APCD 212-2 8/10/93

4. During any calendar quarter for which there are mor e requests for community

bank credits than are available for disbursement du ring that quarter, priority shall be given as follows:

a. First, to essential public services. Priority shall be given to the application which was deemed complete the earliest. The San Lu is Obispo County Air Pollution Control Board may determine that a sp ecific essential public service shall be given priority for access to the c ommunity bank based on public health or safety regardless of the date on w hich the application was deemed complete.

b. Second, to stationary sources eligible for access t o the community bank pursuant to subsection B.2. Priority shall be give n to the applicants with the lowest accumulated total emissions. For applic ants with the same accumulated total emissions, priority shall be give n to the application which was deemed complete earliest. The accumulate d total emissions (ATE) shall be calculated as follows:

ATE = RROG + PROG + RNOx + PNOx + RPM10 +

PPM10 + RSOx + PSOx

where:

RROG = amount of ROG community bank credits request ed in
tons per year.

PROG = amount of ROG community bank credits previou sly received from the community bank in tons per year

RNOx = amount of NOx community bank credits request ed in tons

per year.

PNOx = amount of NOx community bank credits previou sly received from the community bank in tons per year

RPM10 = amount of PM10 community bank credits reque sted in
tons per year.

PPM10 = amount of PM10 community bank credits previ ously received from the community bank in tons per year.

RSOx = amount of SOx community bank credits request ed in tons

per year.

PSOx = amount of SOx community bank credits previou sly received from the community bank in tons per year.San Luis Obispo County APCD 212-3 8/10/93 c. Third, to stationary sources eligible for access to the community bank and for which the requested community bank credits woul d be used as offsets for an emission unit for which an Authority to Cons truct or Permit to Operate was required but not obtained. Priority sha ll be given to the applicants with the lowest accumulated total emissi ons. For applicants with the same accumulated total emissions, priority shall be given to the application which was deemed complete earliest.

5. Applications that do not receive community bank cre dits initially may be held for consideration one additional calendar quarter. If c ommunity bank credits are not received during the second quarter, the applicant m ay refile the application at a later date or may obtain offsets from Emission Redu ction Credit's banked pursuant to Rule 211.

6. If an essential public service does not receive com munity bank credits during the initial calendar quarter in which credits were requ ested, the application shall be

held until such credits are received.

7. Essential public services may, at the discretion of the APCO, reserve community bank credits for up to three years to allow multi-y ear projects to be planned. The sum of such reservations shall not exceed 10 percen t of each calendar quarter allocation for the community bank for those three y ears. The credits are accumulated quarterly and the Authority to Construc t shall not be issued until all

needed credits are obtained.

8. During any calendar quarter for which there are few er requests for community bank credits than are available from the calendar q uarter allocation, the unused

credits shall be made available for use the followi ng calendar quarter.

9. Community bank credits obtained from the Community Bank shall not be banked

or transferred.

10. Community emission reduction credits shall be retur ned to the community bank under the following conditions:

a. Construction has not started prior to the expiratio n of an Authority to Construct. In this case all community emission red uction credits which were granted to obtain the Authority to Construct s hall be returned.

b. The voluntary surrender or the revocation of an Aut hority to Construct or Permit to Operate. In this case all community emis sion reduction credits which were granted to obtain the Authority to Const ruct or Permit to Operate shall be returned.San Luis Obispo County APCD 212-4 8/10/93

E. LIMITATIONS ON THE USAGE OF COMMUNITY BANK CREDITS

1. Community bank credits which result from the shutdo wn of an emission unit, or a reduction in throughput for an emission unit, shall not be used as offsets at a essential public service where the potential to emi t would exceed the 100 tons per year for either NOx or ROG.

2. All modified emission units shall be required to co mply with applicable district BACT requirements prior to being allowed access to Community Bank Credits.

3. If an applicant holds any emission reduction credit s, access to the community bank shall not be allowed unless the applicant is p roposing to provide such credits as offsets in the same permitting action where acce ss to the community bank is proposed.

F. RECORDKEEPING REQUIREMENTS

1. Any stationary source that has been granted communi ty bank emission reduction credits shall maintain records showing the cumulati ve amount of all community bank credits granted from or returned to the commun ity bank.

2. The District shall maintain records showing any sta tionary source which has been granted community bank credits and the amount of su ch credit granted from and returned to the community bank.

G. ADMINISTRATIVE REQUIREMENTS

1. Emission reductions proposed for deposit in the Com munity Bank shall be calculated in accordance with procedures establishe d in Rule 213.

H. FEES

The fees for using the community bank shall be the same as those in Rule 306.