(Adopted September 8, 2006)(Re-Adopted August 3, 2007) 

(Repealed January 8, 2010)(Adopted February 4, 2011) 

 1315 - 1 

PROPOSED RULE 1315 FEDERAL EW SOURCE REVIEW TRACKIG 

SYSTEM 

(a) Purpose 

The purpose of this rule is to: 

(1) Maintain the District’s ability to continue through December 31, 2030 to 

issue permits to major sources that obtain offset credits from the Priority 

Reserve under Rule 1309.1 and/or that are exempt from offsets under Rule 

1304; 

(2) Memorialize in rule form the procedures to be followed by the Executive 

Officer for: 

(A) Establishing the District’s NSR program equivalency with federal 

NSR offset requirements for such major sources; and 

(B) Demonstrating that sufficient emission reductions, including 

previously-untracked emission reductions, existed beyond 

regulatory requirements under federal law to be used as offset 

credits to establish that the District’s NSR program is equivalent 

with federal NSR offset requirements for major sources that are 

exempt from offsets under Rule 1304 or obtain offset credits from 

the Priority Reserve under Rule 1309.1. 

(b) Definitions 

(1) COMMUNITY BANK means the Community Bank as established by 

Rule 1309.1 – Community Bank, as adopted June 28, 1990 and by Rule 

1309.1 – Community Bank And Priority Reserve, as amended May 3, 

1991, and became unavailable to applications deemed complete after the 

December 7, 1995 amendments to Rule 1309.1 – Priority Reserve, which 

eliminated the Community Bank. 

(2) NET EMISSION INCREASE means the aggregate increase in potential to 

emit from permitted major and minor stationary sources of a 

nonattainment air contaminant subject to tracking pursuant to paragraph 

(c)(2) of this rule that are offset from the Priority Reserve or exempt from 

offsets pursuant to Rule 1304 minus the aggregate emissions reductions of 

the same nonattainment air contaminant tracked pursuant to paragraph 

(c)(3) of this rule over the same time period. 
Rule 1315 (Cont.) (Adopted February 4, 2011) 

 1315 - 2 

(3) OFFSET RATIO means the ratio of the quantity of offset credits provided 

(in pounds per day) to the increase in potential emissions (in pounds per 

day) requiring offsets. 

(4) ORPHAN REDUCTION means any reduction in actual emissions from a 

permitted source within the District resulting from a physical change to 

the source and/or a change to the method of operation of the source 

provided the change is reflected in a revised permit for the source and 

provided such reduction is not otherwise required by rule, regulation, law, 

approved Air Quality Management Plan Control Measure, or the State 

Implementation Plan and does not result in issuance of an ERC. 

(5) ORPHAN SHUTDOWN means any reduction in actual emissions from a 

permitted source within the District resulting from removal of the source 

from service and inactivation of the permit without subsequent 

reinstatement of such permit provided such reduction is not otherwise 

required by rule, regulation, law, approved Air Quality Management Plan 

Control Measure, or the State Implementation Plan and does not result in 

issuance of an ERC. 

(6) PRIORITY RESERVE means the Priority Reserve as established by the 

June 28, 1990 adoption of Rule 1309.1 – Community Bank and as 

amended by the May 3, 1991 amendments to Rule 1309.1 – Community 

Bank and Priority Reserve and by the December 7, 1995 and subsequent 

amendments to Rule 1309.1 – Priority Reserve. 

(7) SHORTFALL means a negative net balance in any of the District offset 

accounts described in paragraph (c)(1) of this rule as demonstrated 

through an FDE prepared pursuant to paragraph (d)(3) of this rule or 

projected pursuant to subdivision (e) of this rule. 

(c) Offset Accounts for Federal NSR Equivalency 

(1) District Offset Accounts for Federal Nonattainment Air Contaminants 

The Executive Officer shall maintain a separate District offset account for 

each federal nonattainment air contaminant excluding PM2.5. The 

District offset accounts were established as of October 1, 1990 with valid 

emission reductions that had occurred prior to that date, as reflected in 

various facilities’ negative NSR account balances and that were 

aggregated as the initial account balances listed in Table A for each 

nonattainment air contaminant. Any portions of the initial account 
Rule 1315 (Cont.) (Adopted February 4, 2011) 

 1315 - 3 

balances identified in Table A remaining in the District offset accounts at 

the end of calendar year 2005 were removed from the District offset 

accounts as an environmental benefit by the Executive Officer and are not 

used for purposes of demonstrating equivalency between federal NSR 

offset requirements and the District’s NSR program. Additional District

offset accounts are to be established by the Executive Officer in the event 

that additional federal nonattainment air contaminants other than PM2.5 or 

their precursors become subject to federal nonattainment NSR offset

requirements, unless by rule the District establishes that Rule 1304 and 

Rule 1309.1 do not apply to such contaminants or their precursors. If the 

United States Environmental Protection Agency (EPA) re-designates the 

District’s attainment status from nonattainment to attainment for a specific 

air contaminant the Executive Officer may discontinue tracking and 

reporting the associated District offset account for that air contaminant 

provided there is a showing in the maintenance plan that the continued use 

of emissions offsets for that air contaminant is not necessary to maintain 

attainment for that air contaminant. The District’s NSR program shall be 

considered equivalent to federal nonattainment NSR offset requirements 

for a nonattainment air contaminant so long as the procedures specified in 

this rule are followed and the balance in the District offset account for that

air contaminant remains positive. 

TABLE A 

Initial District Offset Account Balances 

Air Contaminant Initial Account Balance 

(tons per day) 

Volatile Organic Compounds (VOC) 38.46 

Nitrogen Oxides (NOx) 23.92 

Sulfur Oxides (SOx) 8.04 

Carbon Monoxide (CO) 8.45 

Particulate Matter (PM10) 2.67 

(2) Tracking of Offset Account Debits for Federal NSR Equivalency 

The Executive Officer shall track the amount of emissions and debit from 

the District offset accounts for the following types of offset allocations or

exemptions provided from the District offset accounts for sources located 
Rule 1315 (Cont.) (Adopted February 4, 2011) 

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at major polluting facilities and that are not exempt from the offset 

requirements of federal nonattainment NSR: 

(A) Emission offsets from the Priority Reserve or Community Bank 

pursuant to Rule 1309.1; and 

(B) Exemptions from the offset requirements of Rule 1303 – 

Requirements pursuant to Rule 1304 – Exemptions. 

The applicable offset ratios for offsets tracked by the Executive Officer 

pursuant to this paragraph is 1.2-to-1.0 for extreme nonattainment air 

contaminants and their precursors and is 1.0-to-1.0 for all other 

nonattainment air contaminants. 

(3) Tracking of Offset Account Credits for Federal NSR Equivalency 

(A) The Executive Officer shall track and verify the amount of the 

following types of emission reductions that have occurred since 

October 1, 1990 to the District offset accounts: 

(i) Orphan shutdowns; 

(ii) Orphan reductions; 

(iii) ERCs provided as emission offsets for sources located at 

minor facilities; 

(iv) The difference between the quantity of ERCs provided for 

a source located at a major polluting facility at a 1.2-to-1.0 

offset ratio pursuant to Rule 1303(b)(2)(A) and the quantity 

of ERCs required to offset the emission increases at a ratio 

of 1.0-to-1.0 for all non-attainment air contaminants except 

extreme nonattainment air contaminants and their 

precursors. 

(v) The amount of emission reductions associated with a 

facility’s NSR balance, Community Bank and Priority 

Reserve allocations, and offset exemptions that is 

subtracted from the emission reductions quantified pursuant 

to Rule 1306(c) as part of the Executive Officer’s 

evaluation of an ERC banking application; and 

(vi) The difference between the actual daily emission 

reductions calculated pursuant to Rule 1306(c) with and 

without the BACT adjustment required in Rule 1306(c)(2) 

as part of the Executive Officer’s evaluation of an ERC 

banking application. This clause applies only in cases 
Rule 1315 (Cont.) (Adopted February 4, 2011) 

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where the Executive Officer demonstrates and EPA 

concurs that the subtracted amount is not otherwise 

required by rule, regulation, law, approved Air Quality 

Management Plan Control Measure, or the State 

Implementation Plan. This clause is not applicable to 

emission reductions that occur in the Riverside County 

portion of the Salton Sea Air Basin (SSAB) or the non-Palo 

Verde, Riverside County portion of the Mojave Desert Air 

Basin (MDAB). 

(B) The Executive Officer shall quantify and deposit emission 

reductions that are tracked pursuant to subparagraph (c)(3)(A) of 

this rule into the District offset accounts according to the following 

procedures: 

(i) From orphan sources tracked pursuant to clauses 

(c)(3)(A)(i) or (c)(3)(A)(ii) of this rule at eighty percent of 

the total or change in the source’s NSR permitted emission 

levels, respectively; and 

(ii) From ERCs tracked pursuant to clauses (c)(3)(A)(iii), 

(c)(3)(A)(iv), (c)(3)(A)(v), and (c)(3)(A)(vi) of this rule in 

the amounts specified pursuant to those clauses. 

(C) The Executive Officer may choose not to track all potential sources 

of credits in any reporting period if the Executive Officer 

determines that sufficient credits remain in the District offset 

accounts to demonstrate equivalency in each reporting period. 

(4) Surplus at the Time of Use 

All credits deposited into the District offset accounts pursuant to clauses

(c)(3)(A)(i), (c)(3)(A)(ii), and (c)(3)(A)(vi) of this rule shall be discounted 

by the Executive Officer to ensure that they remain surplus at the time of 

use. Such discounting shall be performed annually and shall be based on 

the percentage reduction in overall permitted emissions projected to be 

achieved as a result of implementation of control requirements that 

became effective during the previous calendar year for each specific

nonattainment air contaminant within the District. 

(5) Tracking Sequence 

The tracking elements described in paragraphs (c)(2) through (c)(4) of this 

rule shall be carried out separately for each District Offset Account in the 
Rule 1315 (Cont.) (Adopted February 4, 2011) 

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following sequence for each reporting period as defined in paragraph 

(d)(1) of this rule: 

(A) Apply the surplus at the time of use discount described in 

paragraph (c)(4) of this rule to the offsets tracked pursuant to 

subparagraph (c)(3)(A) of this rule remaining in the District Offset

Account, if any; 

(B) Subtract as much of the aggregate District Offset Account debits 

tracked and quantified pursuant to paragraph (c)(2) of this rule 

from the unused Table A initial balance remaining in the 

corresponding District Offset Account, if any, as possible without 

resulting in a negative District Offset Account balance; 

(C) Subtract the aggregate District Offset Account debits tracked and 

quantified pursuant to paragraph (c)(2) of this rule remaining after 

conducting the subtraction specified in subparagraph (c)(5)(A) of 

this rule, if any, from the corresponding District Offset Account 

balance; and 

(D) Add the emission reductions tracked pursuant to subparagraph 

(c)(3)(A) of this rule for the current reporting period to the 

corresponding District Offset Account Balance. 

The PDE for each reporting period through the 2005 reporting period shall 

follow the tracking sequence identified in subparagraphs (c)(5)(A), 

(c)(5)(B), and (c)(5)(C) and the PDE for each reporting period 

commencing with the 2006 reporting period shall follow the tracking 

sequence identified in subparagraphs (c)(5)(A) and (c)(5)(C). The FDE

for each reporting period shall be completed by adding the results of 

subparagraph (c)(5)(A) tracking to the PDE results for the same reporting 

period. 

(6) Federal Offset Criteria 

Offset account credits used to offset debits pursuant to Rule 1304 or Rule 

1309.1, as specified in paragraph (c)(2), are real as specified in 

subparagraphs (c)(3)(A) and (c)(3)(B), surplus as specified in paragraphs 

(b)(4), (b)(5), and (c)(4), permanent as specified in paragraphs (b)(4) and 

(b)(5) and subparagraph (c)(3)(A), quantifiable as specified in paragraphs 

(c)(1), (c)(3), (c)(4), and (c)(5), and enforceable as specified in paragraphs 

(b)(4), (b)(5), and (c)(3). 
Rule 1315 (Cont.) (Adopted February 4, 2011) 

 1315 - 7 

(d) Federal NSR Equivalency Determination Reports 

(1) Reporting Periods 

The Executive Officer shall aggregate and track offsets debited from and 

offsets deposited to the District offset accounts into the following 

reporting periods for purposes of making periodic determinations of 

equivalency: 

(A) October 1, 1990 through July 31, 1995; 

(B) Each of the consecutive twelve-month periods commencing with 

August 1995 through July 1996 and concluding with August 2003 

through July 2004; 

(C) August 2004 through December 2005; 

(D) Each calendar year from 2006 through 2009; and 

(E) Each calendar year from 2010 through 2030. 

(2) Preliminary Determinations of Equivalency 

Commencing with the calendar year 2010 reporting period, and for each 

reporting period thereafter, the Executive Officer shall, no later than 

twelve months after the completion of the reporting period, complete a 

Preliminary Determination of Equivalency (PDE) with federal 

nonattainment NSR offset requirements. The Executive Officer shall 

report the PDE to the District’s Governing Board and EPA no later than 

the second regularly-scheduled monthly Governing Board meeting after 

the completion deadline for the PDE. The PDE is a conservative 

assessment of the District offset account balances without accounting for

orphan and other credits that become available during the subject reporting

period. Each PDE shall include the debit accounting elements identified 

in paragraph (c)(2) of this rule and the running balances in the District 

offset accounts at the beginning and at the end of the subject reporting 

period. 

(3) Final Determinations of Equivalency 

Commencing with the calendar year 2010 reporting period, and for each 

reporting period thereafter, the Executive Officer shall complete a Final 

Determination of Equivalency (FDE) with federal nonattainment NSR 

offset requirements for each District Offset Account. The FDE for each

account shall be completed no later than eighteen months after the 

completion of the subject reporting period. The Executive Officer shall

report the FDE to the District’s Governing Board and EPA no later than 
Rule 1315 (Cont.) (Adopted February 4, 2011) 

 1315 - 8 

the second regularly-scheduled monthly Governing Board meeting after 

the completion deadline for the FDE for any account(s) for which the PDE 

did not demonstrate equivalence. Each FDE shall include both the debit 

and the credit accounting elements identified in paragraphs (c)(2) and 

(c)(3) of this rule, respectively, and the running balances in the District

offset accounts at the beginning and at the end of the subject reporting 

period. The Executive Officer shall report the FDE for any account(s) for 

which the PDE did demonstrate equivalence no later than the reporting 

deadline for the subsequent reporting period’s PDE specified in paragraph 

(d)(2) of this rule. 

(4) Early FDE Subsuming PDE 

In lieu of preparing both a PDE and an FDE for a single reporting period, 

the Executive Officer may opt to include the PDE in the FDE for the same 

reporting period. Such FDEs are subject to the same completion and 

reporting deadlines as are the PDEs that they subsume. 

(e) Projections of District Offset Account Balances 

Each PDE report and each FDE report the Executive Officer prepares and 

presents to the Governing Board and EPA shall also include projections of the 

District offset account balances at the end of each of the two subsequent reporting 

periods. The Executive Officer shall make the projections of the District offset 

account balances based upon the average of the total annual debits and the 

average of the total annual credits for the five reporting periods most recently 

included in a PDE or an FDE. Although these projections are to be reported with 

the results of the PDEs and FDEs, they are separate from the determinations of 

equivalency and do not constitute an element of the determinations of 

equivalency. 

(f) Equivalency Backstop Provisions 

(1) Funding of the Priority Reserve and Issuance of Permits 

If the most recent District offset account balances determined by an FDE 

pursuant to paragraph (d)(3) of this rule demonstrate a shortfall for any air

contaminant, the Executive Officer shall: 

(A) Discontinue funding the Priority Reserve for any air contaminant 

that the most recent FDE has demonstrated does not have a 

positive balance in its District offset account no later than the 
Rule 1315 (Cont.) (Adopted February 4, 2011) 

 1315 - 9 

completion deadline for the FDE specified in paragraph (d)(3) of 

this rule. The Executive Officer may resume funding the Priority 

Reserve upon completion of an FDE demonstrating that the 

shortfall no longer exists. 

(B) Discontinue issuing permits to construct and permits to operate 

that are subject to paragraph (c)(2) Offset Account debits resulting 

in the further use of Rule 1304 exemptions or Priority Reserve 

offsets from Rule 1309.1 for the air contaminant that has a shortfall 

to sources that are major sources of that air contaminant 

commencing no later than the completion deadline for the FDE 

demonstrating the shortfall. Additionally, the Executive Officer 

shall place all major source applications that would otherwise 

qualify for an offset exemption pursuant to Rule 1304 or to access 

the Priority Reserve for the air contaminant that has a shortfall on 

hold until the results of an FDE demonstrating that the shortfall has 

been rectified have been reported to and approved by the 

Governing Board unless the applicant elects to provide sufficient 

ERCs to offset the emissions increase pursuant to Rule 1303(b)(2). 

The Executive Officer may resume issuance of such permits upon 

completion of an FDE demonstrating that the shortfall no longer 

exists. 

(2) Report to the Governing Board: Rectification of a Shortfall 

If an FDE demonstrates that a shortfall exists in any of the District offset 

accounts, or the most recent projected District offset balances calculated 

pursuant to subdivision (e) of this rule predict that such a shortfall will 

exist, the Executive Officer shall prepare a report to the Governing Board 

recommending appropriate action to rectify the shortfall. The Executive 

Officer shall present this report to the Governing Board no later than six 

months after the paragraph (d)(2) or (d)(3) completion deadline for the 

PDE projecting or the FDE demonstrating or projecting the shortfall. The 

report shall either recommend implementing one or more of the following 

backstop provisions as needed to correct the shortfall or include an 

explanation of why it is not necessary to implement any of the following 

backstop provisions by making a demonstration that the District remains

in compliance with federal nonattainment NSR offset requirements on an 

aggregate basis: 
Rule 1315 (Cont.) (Adopted February 4, 2011) 

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(A) Provide additional credits to the District offset account(s) that have 

a shortfall within six months of the FDE that demonstrated the 

shortfall or the subdivision (e) projection that predicted it. The 

Executive Officer may obtain such credits by purchasing them, by 

funding emission reduction projects using quantification protocols 

approved by EPA, by applying BACT (federal LAER) in excess of 

federal requirements, or by other methods approved by EPA; 

and/or 

(B) Propose amendments to Rule 1304 and/or Rule 1309.1 to eliminate 

certain offset exemptions or to eliminate certain sources’ eligibility 

to receive offsets from the Priority Reserve, respectively. 

The report shall also include a proposed timeline for implementation of 

the actions it recommends. 

(g) California Environmental Quality Act Backstop Provisions 

(1) Net Emission Increases 

(A) Emission Increases at Major and Minor Facilities 

In addition to the tracking of offset account debits provided to 

sources at major polluting facilities pursuant to paragraph (c)(2) of 

this rule, the Executive Officer shall track all increases in potential 

to emit that occur at major and minor facilities pursuant to Rule 

1304 or Rule 1309.1. Increases in potential to emit at minor 

facilities tracked pursuant to this paragraph shall not constitute 

debits from the District offset accounts. 

(B) Calculation of Net Emission Increases 

The Executive Officer shall calculate the cumulative net emission 

increase of each nonattainment air contaminant that is tracked 

pursuant to paragraphs (c)(2) and (c)(3) of this rule from [date of 

adoption] through the end of the calendar year 2011 reporting 

period and through the end of each subsequent reporting period no 

later than the FDE completion deadline for each such reporting 

period specified in paragraph (d)(3) of this rule. 

(C) Reporting Net Emission Increases 

The Executive Officer’s report to the Governing Board of each 

FDE commencing with the FDE for the calendar year 2011 

reporting period shall include the cumulative net emission 
Rule 1315 (Cont.) (Adopted February 4, 2011) 

 1315 - 11 

increases from [date of adoption] through the end of the reporting 

period analyzed by the FDE calculated pursuant to paragraph 

(d)(3) of this rule. In cases where, pursuant to paragraph (d)(3) of 

this rule, the Executive Officer reports the credit accounting 

elements identified in paragraph (c)(3) of this rule with the PDE 

for the subsequent reporting period, the Executive Officer shall 

also report the cumulative net emission increase(s) for the same air 

contaminant(s) with the PDE for the subsequent reporting period. 

Although net emission increases are to be reported with the results 

of the FDEs, they are separate from the FDEs and do not constitute 

an element of the FDEs. 

(2) Projections of Cumulative Net Emission Increases 

Each PDE report and each FDE report the Executive Officer prepares and 

presents to the Governing Board and EPA commencing with the reports 

analyzing the 2011 reporting period shall also include projections of the 

cumulative net emission increases at the end of each of the two subsequent 

reporting periods. The Executive Officer shall make the projections of the 

cumulative net emission increases from both major sources and minor 

sources based upon the average of the aggregate increase in potential to 

emit of each nonattainment air contaminant subject to tracking pursuant to 

paragraph (c)(2) of this rule and the average of the aggregate emissions 

reductions of the same nonattainment air contaminant for the five 

reporting periods most recently included in a PDE or an FDE or each of 

the reporting periods commencing with the 2011 reporting period, 

whichever is fewer reporting periods. Although these projections are to be 

reported with the results of the PDEs and FDEs, they are separate from the 

determinations of equivalency and do not constitute an element of the 

determinations of equivalency. 

(3) Issuance of Permits 

If the cumulative net emission increase of a nonattainment air 

contaminant, as tracked pursuant to subparagraph (g)(1)(B) of this rule 

and reported with an FDE pursuant to subparagraph (g)(1)(C) of this rule, 

exceeds the paragraph (g)(4) threshold or is projected pursuant to 

paragraph (g)(2) of this rule to exceed the paragraph (g)(4) threshold for 

that air contaminant, the Executive Officer shall discontinue issuing 

permits to construct and permits to operate that rely on further use of Rule
Rule 1315 (Cont.) (Adopted February 4, 2011) 

 1315 - 12 

1304 exemptions or Rule 1309.1 Priority Reserve offsets for that air 

contaminant to major and minor sources of that air contaminant. Such 

permit issuance shall cease no later than the paragraph (d)(2) PDE 

completion deadline or the paragraph (d)(3) FDE completion deadline 

applicable to the PDE or FDE with which the paragraph (g)(4) threshold 

exceedance or projected exceedance will be reported to the Governing 

Board. The Executive Officer shall not resume issuing such permits 

unless and until the corresponding cumulative net emission increase 

returns to a level at least ten percent below the threshold for the year in 

which permitting is to resume, as shown in Table B. 

(4) Cumulative Net Emission Increase Thresholds 

The cumulative net emission increase thresholds based upon the growth 

assumptions in the 2007 AQMP for [date of adoption] through December 

of 2011 and each subsequent year through 2030 are presented in Table B. 

TABLE B 

Cumulative Net Emission Increase Thresholds 

(tons per day) 

[date of 

adoption] 

through 

December of 

VOC NOx SOx PM10 

2011 1.68 0.15 0.04 0.24 

2012 2.80 0.25 0.06 0.40 

2013 3.91 0.35 0.09 0.55 

2014 5.03 0.45 0.11 0.71 

2015 6.30 0.53 0.14 0.90 

2016 7.58 0.61 0.18 1.09 

2017 8.85 0.68 0.21 1.29 

2018 10.12 0.76 0.24 1.48 

2019 11.39 0.84 0.27 1.67 

2020 12.67 0.92 0.30 1.86 
Rule 1315 (Cont.) (Adopted February 4, 2011) 

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[date of 

adoption] 

through 

December of 

VOC NOx SOx PM10 

2021 13.94 1.00 0.33 2.05 

2022 15.21 1.08 0.36 2.24 

2023 16.48 1.15 0.39 2.43 

2024 17.73 1.27 0.42 2.63 

2025 18.98 1.39 0.45 2.83 

2026 20.23 1.50 0.48 3.03 

2027 21.49 1.62 0.51 3.23 

2028 22.74 1.73 0.55 3.43 

2029 23.99 1.85 0.58 3.63 

2030 25.24 1.96 0.61 3.83 

(h) State Implementation Plan Submittals 

The Executive Officer shall not submit paragraphs (b)(2) or subdivisions (g) and 

(h) of this rule to the California Air Resources Board or to EPA for inclusion in 

the California State Implementation Plan. 

(i) Sunset Date for Permit Issuance 

This rule shall expire on January 1, 2031.