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 PRIORITY 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 RECORDKEEPING 
Rules and Regulations 505 - 2 Placer County APCD 

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Placer 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 reduction 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 permits, 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 reductions 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. Disbursement of emission reduction loans shall 

not be provided for emissions units not necessary to provide or maintain public health 

and safety. Disbursement of emission reduction loans must be made with banked 

emission reductions that are surplus to mandated 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, correctional 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 publicly 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 reductions used by the District 

toward achieving mandated emission reductions or for loans to applicable essential 

public services for use as offsets pursuant 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 credits (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 stationary sources or emission units not claimed 

for emission credits by the facility as provided in Rule 504, EMISSION 

REDUCTION CREDITS. 

303 ALLOCATION FOR ESSENTIAL PUBLIC SERVICES: On or before December 31st of 

each year, the Air Pollution Control Officer 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 emission reductions in the Priority Reserve Bank 

to meet mandated emission reduction requirements. 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 stationary 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 Authority 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 certificate 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 number and the amount of emission reductions 

credited from the borrower's account on the permit and in the borrower's account 

history. 

304.5 Disbursement of emission reductions from source shutdowns 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 essential 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 PRIORITY RESERVE CREDITS: Sources may, if the Air Pollution Control 

Officer determines a need, reserve Priority Reserve 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 shall 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 309, a loan of emission reduction credits 

shall exist for the life of the emissions unit using 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 date of the meeting of the District 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 calculation 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 requested in this application or requested in 

prior applications, must first use these to replenish credits previously obtained or for the 

pending application, prior to being allowed access 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.