Placer County APCD 505 - 1 Rules and Regulations 

### RULE 505 PRIORITY RESERVE

Adopted 9-21-93

CONTENTS

100 GENERAL

101 PURPOSE

102 APPLICABILITY

200 DEFINITIONS

201 CLEANUP OPERATION

202 ESSENTIAL PUBLIC SERVICES

203 PRIORITY RESERVE BANK
204 QUARTERLY

300 STANDARDS

301 CRITERIA

302 PRIORITY RESERVE

303 ALLOCATION FOR ESSENTIAL PUBLIC SERVICES

304 DISBURSEMENT

305 PRIORITY RESERVE PRIORITIZATION

306 RESERVING PRIORI TY RESERVE CREDITS

307 UNUSED CREDITS

308 TRANSFERS

309 RETURNS

310 MORATORIUM

400 ADMINISTRATIVE REQUIREMENTS

401 CALCULATION PROCEDURES

402 EMISSION REDUCTION CREDITS

500 MONITORING AND RECORDS

501 RECORDKEEPINGRules and Regulations 505 - 2 Placer County APCD This Page Intentionally Left BlankPlacer County APCD 505 - 3 Rules and Regulations 100 GENERAL

101 PURPOSE: The Priority Reserve Bank is established within the Emission Reduction Bank for the following purposes:

101.1 Use in achieving the emissions reduct ion rate of progress requirements of the District Air Quality Attainment Plan or State Implementation Plan; and

101.2 Use in mitigating emission increases by stationary sources, represented by permit applications for new or modified pe rmits, in the period of July 1, 1991, through January 1, 1993, and the period of January 1, 1993, through September 21, 1993, to the extent mitigation was required by law and was not obtained under the adopted District Rules and Regulations; and

101.3 Use in providing loans of emission r eductions for use as offsets for new or modified stationary sources that are essential public services.

102 APPLICABILITY: Emission reduction loans from the Priority Reserve shall be made to

the extent that banked emission reductions are available and the transfer is allowed pursuant to Section 304, to publicly owned or non-profit essential public services. The applicant must have secured all potential offsets available by modifying emission units at the same stationary source. Disbursement of emission reduction loans shall not be provided for on-site power generation. Disbur sement of emission reduction loans shall not be provided for emissions units not necessary to provide or maintain public health and safety. Disbursement of emission re duction loans must be made with banked emission reductions that are surplus to ma ndated reductions - the emission reductions required to meet rate of progress plan commitments and to mitigate emission increases occurring prior to September 21, 1993.

200 DEFINITIONS: Unless otherwise defined below, the terms used in this rule are defined in Rule 502, NEW SOURCE REVIEW, and Rule 504, EMISSIONS REDUCTION CREDITS.

201 CLEANUP OPERATION: Operation to remove environmental contaminants from soil or

water.

202 ESSENTIAL PUBLIC SERVICES: Except as provided in Section 102, the following sources shall be considered essential public services.

a. Sewage treatment operations which are publicly owned and operated consistent with the approved General Plan; or

b. Prison, jail, correc tional facility; or

c. Police or fire fighting facility; or

d. School or hospital; or

e. Landfill gas control or processing systems; or

f. Water delivery operations which are pub licly owned and operated consistent with the approved General Plan; or

g. Cleanup or remediation operations mandated by Regional Water Quality Control Board, California Department of Health Services, Environmental Protection Agency or any other state or federal law, rule or regulation.Rules and Regulations 505 - 4 Placer County APCD 203 PRIORITY RESERVE BANK: A depository of emission redu ctions used by the District toward achieving mandated emission reductions or for loans to applicable essential public services for use as offsets pursua nt to Rule 502, NEW SOURCE REVIEW.

204 QUARTERLY: Calendar quarter beginning in January, April, July, and October.

300 STANDARDS

301 CRITERIA: The Priority Reserve Bank shall be supported by actual emission reductions

which are certified as emission reduction cr edits (ERC) pursuant to Rule 504, EMISSION

REDUCTION CREDITS.

302 PRIORITY RESERVE BANK: Support for the Priority Reserve Bank shall include, but

not be limited to:

302.1 The adjustment on all emission reductions in accordance with Rule 504,

EMISSION REDUCTION CREDITS.

302.2 Shutdowns or modifications of stationar y sources or emission units not claimed for emission credits by the facility as provided in Rule 504, EMISSION

REDUCTION CREDITS.

303 ALLOCATION FOR ESSEN TIAL PUBLIC SERVICES: On or before December 31st of each year, the Air Pollution Control Office r shall determine the amount of emission reductions from the Priority Reserve Bank to be made available for withdrawal and application to essential public services for the upcoming year. Additional emission reductions not included in the yearly determination may be added, if the Air Pollution Control Officer determines there is a need, to the previously established quarterly

allocations. Allocated emissions reductions shall be made available on the first Wednesday of each calendar quarter. The amount available shall never exceed the emission reductions in the Priority Reserve Bank. The Air Pollution Control Officer may reserve a portion or all of the available emissi on reductions in the Priority Reserve Bank to meet mandated emission reduction requirem ents. In the event the Priority Reserve

Bank lacks sufficient emission reduction credits to offset emission increases for eligible stationary sources or emission units, or such emissions have not been allocated, the owner or operator of the new or modified st ationary source or emission unit shall be responsible for obtaining the offsets required.

304 DISBURSEMENT: A loan of emission reductions from the Priority Reserve Bank shall be based upon issuance of a final action on an Aut hority to Construct, pursuant to Rule 502, NEW SOURCE REVIEW, and no later than 15 days following the end of the calendar quarter or other schedule deemed applicable by the Air Pollution Control Officer.

304.1 Legal Title to the emission reductions borrowed from the Priority Reserve Bank

remains with the District. An ERC cert ificate of ownership will not be issued for emission reductions loaned from the Priority Reserve Bank.

304.2 A borrower of emission reductions from the Priority Reserve Bank will be issued

an ERC Bank account number and the borrowed emission reductions will be

credited to that account.

304.3 Upon application by the borrower for an authority to construct and permit to operate the emission reductions in the borrower's account will be credited to the permit.Placer County APCD 505 - 5 Rules and Regulations 304.4 The District will enter the permit num ber and the amount of emission reductions

credited from the borrower's account on t he permit and in the borrower's account history.

304.5 Disbursement of emission reductions from source shutdown s and curtailments

shall be in accordance with the most current US Environmental Protection Agency emissions trading policy and applicable federal regulations.

305 PRIORITY RESERVE PRIORITIZATION: Priority shall be given to mandated emission reductions, the emission reductions required to meet rate of progress plan commitments and to mitigate emission increases occurring prior to September 21, 1993. To the extent surplus emission reductions are available, priority for essent ial public services shall be given to applications to the Priority Reserve Bank with the earliest date an application is deemed complete. The Board of Directors of the District may determine that a specific project shall be given priority for access to the Priority Reserve based on public health or safety, regardless of the application submittal date.

306 RESERVING PRIORI TY RESERVE CREDITS: Sources may, if the Air Pollution Control Officer determines a need, reserve Priority Rese rve credits for up to three years to allow multi-year projects to be planned. The sum of such credits shall amount to no more than 25 percent of each calendar quarter allocation for the Priority Reserve for those three

years.

307 UNUSED CREDITS: During any calendar quarter for which there are fewer requests for emission credits in the Priority Reserve Bank than are available for the calendar quarter allocation, the credits not allocated shall be made available for use the following calendar
quarter.

308 TRANSFERS: Priority Reserve Bank credits sha ll not be transferable from one person to

another.

309 RETURNS: Emission reductions shall be returned in full from the borrower's account to the Priority Reserve Bank under any of the following conditions:

309.1 Construction is not complete within two years of date of issuance of the loan.

309.2 Voluntary surrender or revocation of an Authority to Construct or Permit to Operate.

309.3 Emission reduction credits are issued to the stationary source pursuant to Rule 504, EMISSION REDUCTION CREDITS.

310 MORATORIUM: Except as provided in Section 30 9, a loan of emission reduction credits

shall exist for the life of the emissions unit us ing such credits. If the District Board of

Directors determines that additional emission reductions are necessary, a moratorium on loans may be imposed. Prior to issuing a moratorium, the Air Pollution Control Officer shall provide a notice of the dat e of the meeting of the Dist rict Board of Directors to consider such actions. The moratorium shall be lifted upon determination that additional emission reductions are not necessary by the District Board of Directors.

400 ADMINISTRATIVE REQUIREMENTS

401 CALCULATION PROCEDURES: Emission reductions deposited in the Priority Reserve Bank shall be quantified pursuant to calc ulation procedures specified in Rule 504,

EMISSION REDUCTION CREDITS.Rules and Regulations 505 - 6 Placer County APCD 402 EMISSION REDUCTION CREDITS: Any stationary source which holds Emission Reduction Credits for the affected pollutant r equested in this application or requested in prior applications, must first use these to re plenish credits previously obtained or for the pending application, prior to being allowed ac cess to the Priority Reserve Bank.

500 MONITORING AND RECORDS

501 RECORDKEEPING

501.1 Each stationary source shall maintain a cumulative total of emission credits obtained from the Priority Reserve Bank.

501.2 The District shall maintain records of the source and amount of emission reductions obtained for deposit in the Priority Reserve Bank, and transfers of these credits to applicants and to satisfy mandated emission reduction

measures.