San Luis Obispo County APCD 211-1 8/10/93

RULE 211. EMISSION BANKING (Adopted 9/24/79; Revised 2/23/88, 11/5/91, and 8 /10/93)

A. APPLICABILITY

This Rule provides for the banking of emission redu ctions of reactive organic gases (ROG), nitrogen oxides (NOx), particulate matter le ss than 10 microns (PM10), carbon monoxide (CO) and sulfur oxides (SOx). Eligibility standards and administrative practices are included as a check against the Feder al criteria that any emission reductions intended to be banked are real, quantifiable, perma nent, enforceable, and surplus.

B. REQUIREMENTS

1. Emission reduction credits can be granted only thro ugh the emission banking

process.

2. Any person who has modified or taken out of service any permitted emission unit for the purpose of receiving emission reduction cre dits must surrender the existing permit to operate for that emission unit involved b efore a certificate of Emissions Reduction Credit (ERC) can be granted.

3. Notwithstanding the provisions of Rule 201 (Exempti ons) of these Rules, any modifications to the basic equipment or control equ ipment for an emission unit involved in a banking proposal shall be subject to the applicable requirements of Rule 202 (Permits) of these Rules.

C. EMISSION REDUCTION DISCOUNTS AND LIMITATIONS

1. Emission reductions which result from either a redu ction in throughput or shutdown shall be discounted by the greater of the following:

a. The amount of the emission reduction that could be controlled by the application of the Best Available Retrofit Control Technology (BARCT) applicable on the date the application to bank emis sion reduction credits is deemed complete.

b. Twenty (20) percent.

2. Emission reductions which result from the applicati on of control equipment, the modification of an emission unit, or the replacemen t of an emission unit with a lower emitting emission unit shall be discounted by twenty (20) percent.

3. Emission reductions from emission units subject to a control measure proposed for adoption or further study in the most recent up date of the District's Clean Air Plan (CAP) shall be eligible for banking until the rule that is based on the applicable control measure is implemented. At the time the applicable rule isSan Luis Obispo County APCD 211-2 8/10/93 implemented, the ERC and any offsets obtained by th e use of the ERC shall be set

to zero. The emission reduction credits shall not b e reduced to zero if the reduction is in excess of amount required by the ap plicable control measure. In this event only the excess emission reduction may b e permanently banked.

4. Offsets obtained from the community bank are not el igible for banking. Any

reductions in these emissions are credited back to the community bank.

5. Emission reductions are not eligible for banking un der the following conditions:

a. the emissions were not offset with ERC's; and

b. the emissions being reduced were from an increase i n the potential to emit which occurred after November 5, 1991.

D. APPLICATION FOR AND DETERMINATION OF EMISSION REDUC TION

CREDITS

1. Any person wishing to be credited with an emission reduction shall submit an application to the District. The application to ba nk emission reduction credits

must be submitted to the District before the emissi on unit is modified to reduce emissions. However, if the emission reduction occu rs as a result of a decrease in throughput or a shutdown of an emission unit, an ap plication to bank emission reduction credits must be submitted within 90 days of the reduction or shutdown. If the emission reduction occurs as a result of per mit activity requiring an application for an Authority to Construct, the Auth ority to Construct application may serve as the application to bank emission reduc tion credits if so requested by the applicant.

2. The APCO shall deny any application to bank emissio n reduction credits if the applicant fails to provide sufficient information t o calculate the emission

reduction or to determine if the emission reduction is real, quantifiable, permanent, enforceable, and surplus.

3. An application to bank emission reduction credits s hall be treated and processed in the same manner as an Authority to Construct or Permit to Operate application.

E. ADMINISTRATIVE REQUIREMENTS

1. Action, conditional approval, denial and appeal of ERC applications shall be subject to the same provisions as Authorities to Co nstruct and Permits to Operate in Rules 205, 206, 207 and 208.

2. Withdrawal of a banking application by an applicant will result in cancellation of the application. Any re-submittal of an application will be evaluated using a new

emissions calculation as on the date of re-submitta l.San Luis Obispo County APCD 211-3 8/10/93

3. The APCO shall maintain a Banking Register, which s hall consist of a record of all deposit applications, deposits, withdrawals, an d transactions with regard to the ERC Bank. Subject to District Rule 112, all data in the Banking Register shall be available to the public upon request.

F. EMISSION REGISTRATION

1. Registration of Title

When all the requirements of this rule have been sa tisfied and the emission reduction has actually occurred, the APCO shall iss ue a certificate to the applicant identifying the emission reduction credits and any emission reduction credits that could be subject to reductions pursuant to subsecti on C. In cases involving an appeal of the APCO's decision, issuance of the cert ificate shall be subject to the outcome of the appeal.

2. Transfer by Registered Owner

Transfer of all or any portion of an Emission Reduc tion Credit shall be in writing signed by the holder of the ERC in any form authori zed by law. Upon filing such

deed or other instrument in the District's office a nd payment of the fee required by Rule 306 , the transfer shall be complete and the t itle so transferred shall vest in the transferee. Copies of modified certificates sh all be mailed to the parties

involved in the transfer. If the transfer involved a change in an existing Permit to Operate the District shall send amended Permits to Operate to the appropriate permit holder.

G. LIMITATIONS ON THE USAGE OF EMISSION REDUCTION CRED ITS

An application to use Emission Reduction Credits as an offset shall demonstrate compliance with all applicable requirements of thes e Rules.