February 19, 2015

Placer County APCD 515

- 1 Rules and Regulations 

### RULE **515 STA** **TIONARY RA IL YA** **RD CONTROL EMISSION REDUCTION CREDITS** Adopted October 9, 2008 (Amended February 19, 2015 ) **CONTENTS 100**  **GENER AL**  101 PURPOSE 102 APPLICABILITY **200 DEFINITIONS**  201 ACTUAL EMISSIONS 202 ACTUAL EMISSION REDUCTIONS 203 APCO 204 APPLICANT 205 BANKING 206 CERTIFIED ERCs 207 CONT ROL DEVICE 208 EMISSION REDUCTION CREDITS (ERCs ) 209 EMISSION REDUCTION SHORTFALL 210 ENFORCEABLE 211 ERC CERTIFICATE 212 ERC OW NER 21 3 BASELINE ACTUAL EMISSIONS 214 OFFSET 215 PERMANENT 216 PRIORITY RESERVE BANK 217 QUANTIFIABLE 218 QUARTERLY 219 REAL 220 REGISTER 221 RELATIVE ACCURACY TEST AUDIT (RATA) 222 SURPLUS 223 TRANSFER **300 ST** **AND AR** **DS** 301 CONTROL DEVICE PERMIT REQUIREMENTS 302 PROPOSED ERC ISSUANCE 303 FINAL ERC ISSUANCE 304 RESTRICTIONS ON USE OF ERCs **400 ADM**  **INISTRA**

**TIVE REQUIREMENTS** 401 APPLICATION PROCEDURES 402 ADMINISTRATIVE PROCEDURES AND TIMETABLE 403 REGISTRATION OF EMISSION REDUCTION CREDITS 404 QUANTIFICATION PROTOCOL 405 EMISSION REDUCTION CREDIT ADJUSTMENTS OF CALCULATED CREDITS 406 VIOLATIONSFebruary 19, 2015

Rules and Regulations 515

-2 Placer County APCD **500 MONITORING**  **, TESTING, RECORD KEEPING**  **AN D RE**  **PORTING** 501 CONTINUOUS MONITORS 502 TESTING 503 RECORD KEEPING AND REPORTING **600 PROGRA** **M EVA LUA**  **TION**February 19, 2015

Placer County APCD 515

-3 Rules and Regulations **100 GENER** **AL 101**  **PURPOSE:** To provide the owners of a rail yard a mechanism for quantifying, certifying, and banking em ission reductions from the installation and use of a control device which reduces em issions from locomotive engines in rail yards. **102 APPLICA** **BILIT Y:**  102.1 Geographic: The provisions of this rule apply to rail operations located any where in Placer County. 102.2 Application: This rule applies to the owner of a rail ya rd who installs a control device to reduce em issions from locom otive engines to generate ERCs

. The use of ERCs for offsets is subject to the requirements of Rule 502, NEW SOURCE REVIEWa nd Section 304 of this rule. 102.3 Severability: If any section, subsection, sentence, clause, phrase, or portion of this rule is, for any

reason, held invalid, unconstitutional, or unenforceable by any court of com petent jurisdiction, that portion shall be deem ed as a separate, distinct, and independent provision, and the holding shall not affect the vali dity of the remaining portions of the rule. **200 DEFINITIONS**  **201 ACT**  **UA L EMISSIONS**  **:** The em issions measured by a certified CEMS at the inlet of a control device which reduces em issions from locomotive engines in rail yards. **202 ACT**  **UA L**  **EM ISSION**  **REDUCTIONS:** Actual em ission reductions means the difference in em issions exiting a control device and emissions entering a control device, as measured by a certified CEMS. **20 3**  **APCO:** Air Pollution Control Officer. **20 4**  **APPLICA NT**  **:** The owners of a rail yard submitting an application to bank ERCs and obtain ERC certificates in accordance with this rule. **20 5**  **BA NKING**  **:** The system of quantifying, adjusting, certifying, recording, and registering ERCs for future use or transfer. This system shall be called the Em ission Reduction Credit Bank (ERC Bank). **206 CEM**  **S:** Continuous emission monitoring system. **207 CERTIFIED**  **ERCs :**  E RCs which have been evaluated under the requirements of this rule and other applicable District, state and federal rules and regulations and which have been authorized by the Air Pollution Control Officer. **208 CONTROL DEVICE:**  Stationary equipment used to treat and/or control various air emissions such that the outlet emissions are less than the inlet emissions. **209 EM**  **ISSION REDUCTION**  **CREDITS (ERC** **s )**  **:** Reductions of actual em issions that are registered with the District in accordance with the requirements of this rule. **2 10**  **EM ISSION**  **REDUCTION SHORTFA** **LL:** Am ount of em issions in pounds that the quarterly em ission reductions achieved by the control device falls short of the permit requirement. **2 1**  **1 ENFORCEA** **BLE :**  Em ission reductions and other required actions are enforceable if: (1) they are independently verifiable ; (2) program and permit violations are defined; (3) those liable can be identified; (4) the U.S. Environmental Protection Agency (EPA) and the APCOFebruary 19, 2015

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ma intain the ability to seek pena lties for violations and, where applicable, to secure appropriate corrective action; (5) citizens have access to all the emissions

- related information obtained from the source; (6) citizens can file suits against sources for violations; and (7) they are practicably enforceable in accordance with EPA guidance on practicable enforceability. **2 12**  **ERC CERTIFICA**  **TE :**  A document which provides title to a defined quantity and pollutant type of ERC’s issued by the District

. **213 ERC**  **OWNER:** The person or legal entity i n whose name the ERC Certificate is issued and listed in the Register. **214 BA** **SELINE ACT**  **UA L**  **EM ISSIONS:**  Baseline actual em issions are those exhaust em issions captured from locomotive engines and measured at the control device inlet during the first four calendar quarters of operation after the CEMS has been certified. **215 OFFSET:**  The use of an ERC to compensate for an em ission increase of an affected pollutant from a new or modified source subject to the requirements of Rule 502, NEW SOURCE REVIEW. **216 PERM**  **AN ENT:**  Permanent means the actual em ission reductions continue or endure for the duration of any project utilizing the resulting ERCs as offsets. **217 PRIORITY**  **RESERVE BANK:**  A depository for preserving ERCs pursuant to Rule 505, PRIORITY RESERVE. **218 QUA** **NTIFIA BLE:**  Ability to reliably replicate measured em ission reductions by adhering to the quantification protocol. **219 QUA** **RTERLY:** Pertaining to any calendar quarter beginning in January, April, July, and October. **220 REA** **L:** Actually occurring, implemented, and not artificially devised. **2 21**  **REGISTER:** The document that records all ERC deposits, withdrawals, transfers, and transactions. **222 REL** **AT IVE**  **AC CURA** **CY TEST**  **AU DIT**  **(RA TA** **):** A quality performance procedure performed pursuant to 40 CFR Part 60, Appendix F, Procedure 1 to certify the accuracy of the continuous em issions mo nitors. **223 SURPLUS:**  The am ount of em ission reductions that are, at the tim e of generation of an ERC , not otherwise required by federal, state, or local law, not required by a ny l egal settlement or consent decree, and not relied upon to meet any requirement related to the California State Implementation Plan (SIP)

. However, emission reductions required by a state statute that provides that the subject emission reductions shall be considered surplus may be considered surplus for purposes of the Rule if those reductions meet all other req uirements of this section. Examples of federal, state, and local laws and of SIP

- related requirements include, but are not limited to, the following: 223.1 T he federally

-approved California SIP; 223.2 Other adopted State air quality laws, and regulations not in the SIP, including but

not lim ited to, any

requirement, regulation, or measure that: (1) the District or the State has included on a legally

- required and publicly

-available list of measures that are scheduled for adoption by the District or the State in the future; or (2) is the subject of a public notice distributed by the District or the Date regarding an inten t to adopt such revision;February 19, 2015

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223.3 And other source- or source-category specific regulatory or permitting requirement,

including, but not limited to, Reasonable Available Control Technology (RACT), New Source Performance Standards (NSPS), National Em ission Standards for Hazardous Air Pollutants (NESHAP), Best Available Control Measures (BACM), Best Available Control Technology (BACT), and the Lowest Achievable Em ission Rate (LAER); and 223.4 Any

regulation or supporting documentation that is required by the federal Clean Air Act but is not contained or referenced in 40 C.F.R. Part 52, including but not lim ited to: assumptions used in attainment and ma intenance dem onstrations (including Reasonable Further Progress dem onstrations and mi lestone dem onstrations), including any

p roposed control measure identified as potentially contributing to an enforceable near-term em issions reduction commitment; assumptions used in conformity demonstrations, and assumptions used in emissions inventories. **22 4**  **TRA NSFER:**  The change in ownership of an ERC from one person or legal entity to another. **300 ST** **AND AR** **DS 301**  **CONTROL DEVICE PERMIT REQUIREMENTS :**  301.1 The applicant shall obtain a permit pursuant to Rule 501, GENERAL PERMIT REQUIREMENTS to install a stationary control device in rail yards for the purpose of reducing exhaust emissions from locomotive engines. 301.2 The control device permit shall include enforceable conditions that ensure com pliance with the applicable portions of Section 500

– Monitoring, Testing, Recordkeeping, and Reporting. 302 **PROPOSED ERC ISSUA NCE:**  Prior to proposing issuance of an ERC certificate pursuant to Section 402.6 of this rule, the APCO shall make the following determinations: 302.1 The actual em ission reductions are real, surplus, enforceable, permanent, and quantifiable. 302.2 The continuous mo nitors used to measure inlet and outlet em issions of the control device meet the requirements of Section 500 of this rule. 302.3 The analysis provided by the applicant of historical locomotive activity and expected future em ission reductions in the locomotive fleet are adequate to project future actual emission reductions by the control device

. 302.4 Actual em issions reductions have been calculated and adjusted pursuant to the provis ions of Sections 404 and 405 of this rule, respectively. 302.5 The applicant has paid the fees required pursuant to Rule 601, PERMIT FEES. 303 **FINA L**  **ERC ISSUA** **NCE :**  The APCO shall not issue an ERC certificate until the permit for the control device responsible for creating the em ission reductions has been modified to include, at a minimum, the following: 303.1 The mi nim umq uantity of ERC pollutant(s) to be removed from the exhaust stream per quarter, and 303.2 Conditions that ensure compliance with the applicable portions of Section 500

– Monitoring, Testing, Recordkeeping and Reporting , and 303.3 A statement that the permittee may n ot retire the permit for the control device unless the rail yard is shutdown or the permittee surrenders to the District a Certified ERCFebruary 19, 2015

Rules and Regulations 515

-6 Placer County APCD certificate for the sam e quantity of quarterly em ission reductions required bythe permit. 303.4 Statements that incorporate all of the provisions of Section 406

– Violations.

**304 RESTRICTION**  **S ON**  **USE OF ERC** **s :**  304.1 The use of PM 10 and/or PM 2.5 ERCs generated pursuant to this rule shall not be used to provide offsets for diesel particulate matter. The ERC certificate shall contain a statement prohibiting such use
. 304.2 ERCs generated pursuant to this rule from locations in Federal Attainment Areas shall not be used for offsets in Federal Non

-attainment Areas. **400 ADM**  **INISTRA**

**TIVE REQUIREMENTS 401**  **APPLICA**

**TION PROCEDURES:** 401.1 The applicant shall submit an application on forms supplied by the District. 401.2 The application may be for reductions of on e or mo re affected pollutants. The application shall contain sufficient information to allow for adequate evaluation of the actual em ission reductions. At a mi nim um , for each pollutant for which an ERC certificate is requested, the application shall contain emissions data from a certified CEMS for a minimum of four consecutive calendar quarters. 401.3 The applicant shall provide an analysis of historical locomotive activity at the control device location to support em ission calculations and show reasonable expectation that a specific am ount of em ission reductions ca n be achieved on an on -going basis, taking into account lower than expected activity level, and other factors. 401.4 The applicant shall provide an analysis of expected future em ission reductions in the locomotive fleet as the fleet is upgraded with newer, lower

-em itting locomotives

. 401. 5 The applicable fees shall be submitted pursuant to Rule 601, PERMIT FEES. **402 ADM**  **INISTRA**

**TIVE PROCEDURES A ND TIME** **TA BLE**  **:** 402.1 The APCO shall determine whether an ERC application is complete no later than thirty (30) calendar days following receipt of the application, or after a longer time period if agreed upon in writing by both the applicant and the APCO. 402.2 Upon determination that the application is complete, the APCO shall notify the applicant in writing. Thereafter, only i nformation to clarify, correct, or otherwise supplement the information submitted in the application may be requested bythe District. 402.3 If the APCO determin es that the application is not complete, the applicant shall be notified, in writing, of the decision, specifying the additional information that is required. The applicant shall have sixty (60) days, or a longer time period agreed upon in writing by

both the applicant and the APCO, to sub mit the requested information. Upon receipt of additional information, the APCO shall have another thirty (30) d ays to determine completeness. If no information is submitted or the application is still incomplete, the APCO may cance l the application with written notification to the applicant. 402.4 Withdrawal of an ERC application by the applicant shall result in ca ncellation of the application. Any

re-submittal shall be processed as a new application.February 19, 2015

Placer County APCD 515

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402.5 Upon determination that a n application is complete, the APCO shall have 180 calen dar days to take final action. During this time period, the District shall follow the public notification procedures in Subsection s 402.6, 402.7, and 402.8. 402.6 U pon completion of the prelim inary evaluation of the application, the APCO shall provide written notice of such to the applicant , the ARB , and EPA and publish a public notice in a local newspaper of general circulatio n. The public notice shall specify the applicant, the quantity of ERCs pro posed to be certified and the location where a copy of the preliminary evaluation and proposed revised operating permit may be inspected. 402.7 Publication of the public notice required in Subsection 402.6 shall commence a thirty (30) day

p ublic comment period during which the APCO shall accept written comments on the me rits of the preliminary evaluation. Upon conclusion of this thirty (30) day period, the APCO shall have another thirty (30) days to render a final decision to approve, conditionally approve, or d eny the application taking into consi deration all written comments. This final decision shall be provided in writing to the applicant, any commenters , the US Environmental Protection Agency, and the California Air Resources Board

. 402. 8 T he APCO shall ma ke availab le for public inspection at the District’s office the information submitted by the applicant and the APCO’s prelim inary evaluation no later than the date the public notice of the prel im inary decision is published. 402.9 The applicant or any other party may a ppeal the APCO’s final decision in accordance with Regulation 7, PROCEDURE BEFORE THE HEARING BOARD. **403 REGISTRA** 

**TION OF**  **EM ISSION**  **REDUCTION CREDITS**  **:** ERC certificates issued in accordance with this rule shall be registered and ma intained by the District according to the provisions of Rule 504, EMISSION REDUCTION CREDITS, Section 410, Registration and Section 411, ERC Register, respectively. **40 4**  **QUA NTIFICA** 

**TION PROTOCOL**  **:** The following procedures shall be used to calculate actual em ission reductions achieved by i nstalling a control device to reduce locomotive exhaust em issions. 404 .1 Actual em ission reductions shall be calculated for each calendar quarter by subtracting measured em issions exiting the control device from measured em issions entering the control device, as measured for each pollutant by aC EMS which com plies with the requirements of Sections 501 and 502. 404 .2 ERCs for particulate matter em ission reductions shall be expressed in terms of P M 10 and/or P M 2.5 . 404 .3 ERCs for nitrogen oxides, reactive organic compounds, carbon mo noxide, sulfur oxid es, PM 10 and PM 2.5 shall be quantified in terms of pounds of pollutant per quarter for each calendar quarter. 404

. 4 Em ission calculations for quantifying emission reductions shall be based upon at least four consecutive calendar quarters of CEMS data. **405 EM**  **ISSION REDUCTION**  **CREDIT AD** **JUSTMENT S**  **OF CA** **LCUL AT**  **ED CREDITS:**  Before the APCO may

i ssue an ERC certificate, the actual emission reductions calculated for each calendar quarter pursuant to Section 404 shall be reduced by the following amounts: 405 .1 The APCO shall retire 10 % of the calculated quantity of NOx em ission reductions for air quality benefit.February 19, 2015

Rules and Regulations 515

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405 .2 The APCO shall transfer an additional 5% of the calculated quantity of em ission reductions to the Priority Reserve Bank. 405.3 The APCO shall retire a n equivalent percentage of the calculated quantity of em ission reductions to account for expected future im provements in the fleet, as determined by Section 401.4. **406 VIOL** **AT IONS**  **:** 406.1 Failure to comply with any provision of this rule or perm it condition established pursuant to this rule shall constitute a violation of this rule

. 406.2 Failure to provide the quarterly em ission reduction incorporated in the permit to operate for the control device shall be considered an emission reduction shortfall and shall be a separate violatio n for each day of the quarter. If an em ission reduction sho rtfall occurs, the permittee shall take the following corrective actions in order: 406.2.1 The permittee shall average the actual em ission reductions reported for the

previous four quarters to determine if a sufficient quantity of actual emission reductions occurred to satisfy the quarterly em ission reduction requirement on an annual basis. If the annual em ission reductions satisfy the quarterly em ission reduction requirement, the violation will be deemed resolved, if not the permittee shall comply with (ii) below. 406.2.2 The permittee shall submit a compliance plan quantifying the am ount of the

em ission reduction shortfall and indicating how the em ission reduction shortfall will be remedied within the next 4 quarters

. Such remedies may include cancelling any

u nused ERCs, reducing additional em issions during any of th e next four quarters, such that on an annual basis the required quarterly am ount of em ission reductions is provided, or purchasing and retiring the necessary amount of ERCs. 406. 3 Unnecessary idling or load testing for the sole purpose of providing the quarterly em ission reduction or make

- up of a prior quarter shortfall in emission reductions shall be a violation of this rule and the permit to operate. 406. 4 If a compliance plan is not submitted or any em ission reduction shortfall is not made up within four quarters of the shortfall occurrence , and any portion of the ERC certificate remains unused, a portion of the ERC certificate equivalent to the shortfall shall be revoked by the District. 406. 5 If activity levels at the rail ya rd fall below those projected pursuant to Section 401.3, the permittee may

s ubm it an application to revise the quarterly em ission reductions required, based on the new activity levels. EPA mu st also provide written concurrence as to any n ew quarterly em ission reduction requirem ent prior to issuance of a revised permit to operate. **500 MONITORING**  **, TESTING, REC ORD**  **KEEPING AN**  **D RE PORTING**  **501 CONTINUOUS MONITORS**  **:** 501.1 For each control device installed to generate ERCs, the applicant shall install, and thereafter operate, ma intain, certify, and quality

-assure a continuous em ission mo nitoring system (CEMS) which measures the inlet and outlet stack gas concentrations for each pollutant for which an ERC is to be issued and the oxygen concentrations in ppm v
. The measured concentrations s hall be corrected to 15 percent oxyg en on a dry basis. 501.2 The CEMS shall meet the applicable requirements of 40 CFR 60 Appendix B, Performance Specifications 2 and 3, and 40 CFR Part 60 Appendix F, Procedure 1

.February 19, 2015

Placer County APCD 515

-9 Rules and Regulations The CEMS shall complete a minimum of one cycle of operations (sampling, analyzing and data recording) for each successive 15

- mi nute period. CEMS for PM shall not be required to include condensables. 501.3 The CEMS shall be programmed to calculate and record the actual em ission reductions achieved by the control device, measured in pounds, on a daily basis, and summed quarterly. 501.4 A CEMS certification test protocol shall be submitted to the District and EPA no later than 30 days prior to the test date to allow review of the test plan and to arrange for an observer to be present at the test

. The protocol shall include a process for dem onstrating the accuracy of the computer programmin g used to calculate em issions. The certification test shall be conducted in accordance with the submitted protocol and any

changes required by

th e District or EPA. The applicant shall furnish the District and EPA a written report of the results of performance tests within 60 days of com pletion. Certification testing of the CEMS may be conducted as part of the initi al performance test for each control device. 501.5 For each control device installed to generate ERCs, the applicant shall install, and thereafter ma intain and operate a continuous mo nitoring system to measure and record the stack gas volumetric flow rate

. The system shall meet the 40 CFR Part 52, Appendix E Performance Specifications. **502 TESTING**  **:** 502.1 The CEMS shall be tested annually and quarterly in accordance with the requirements of 40 CFR 60 Appendix F, Procedure 1. The PM testing shall include the filter catch only. 502.2 A performance test shall be performed on the control device once every five years, in accordance with the requirements of 40 CFR 60.13. **503 RECORDKEEPING A** **ND REPORTING:**  503.1 The control device permittee shall ma intain CEMS records that contain the following: The occurrence and duration of any startup, shutdown or ma lfunction, performance testing, evaluations, calibrations, checks, adjustments, ma intenance, duration of any periods during which a continuous mo nitoring system or mo nitoring device is inoperative, and emission measurements. 503.2 The control device permittee shall ma intain records and submit a written report regarding operation of the control device and CEMS quarterly

. The report is due on the 30th day

following the end of the calendar quarter and shall include the a pplicable tim e and date of each period during which the CEMS was inoperative (monitor down ti me ), except for zero and span checks, and the nature of system repairs or adj ustments

. 503.3 The owner of the control device shall prepare and submit to the District a quarterly report which is due on the 30th day following the end of the calendar quarter

. The quarterly report shall detail the quantity and type of em issions reduced by o peration of the control device ; calculated pursuant to Section 404.1

. If actual em ission reductions achieved are less than the em ission reduction requirements specified in the permit, the permittee shall also submit a com pliance plan indicating how the em ission reduction shortfall will be remedied.

503. 4 All records required pursuant to this rule shall be kept for a minimum of five (5) years and made available to District inspectors upon request.February 19, 2015

Rules and Regulations 515

- 10 Placer County APCD **600 PROGRA** **M EVA LUA**  **TION 601**  The APCO shall evaluate this program at least once every 3 years after rule adoption and submit the evaluation program report to the EPA. **602** The evaluation report shall include for each applicant: 602 .1 The number of Certified ERCs issued for each pollu tant (pounds per quarter). 602 .2 Actual emission reductions achieved for each pollutant (pounds per quarter). 602.3 The average cost of ERCs (dollars per ton) by pollutant during the evaluation period. 602.4 The attainment status for each pollutant for which an ERC was issued, at the ERC generation and use locations. **603** If there were any emission reduction shortfall, the evaluation report shall also describe: 603.1 The number of quarters where there was a shortfall. 603.2 The APCO’s analysis of factors which contributed to the shortfall. 603.3 Corrective measures taken to prevent recurrence of the shortfall. 603.4 How long it took the rail yard owner to make up the shortfall. **604** The evaluation report shall also describe: 604.1 An y unintentio nal beneficial or detrimental effects from the program. 604.2 Cost savings, if any, experienced by sources from using these ERCs. 604.3 Whether the APCO had sufficient resources to implement this program. 604.4 An y lessons learned.