California Code of Regulations › Title 17 - Public Health › Division 3 - Air Resources › Chapter 1 - Air Resources Board › Subchapter 5.6 - Interchangeable Air Pollution Emission Reduction Credits › Article 3 - Criteria and Methodology for Generation and Use of Interchangeable Credits › Section 91506 - Generation and Use

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Districts shall adopt rules which, at a minimum, comply with the provisions of
					 this subchapter and with sections
					 40920.6(c) &
					 (d) and 40709-40714.5 of the Health and Safety Code prior to allowing the use
					 of interchangeable credits to meet District requirements other than the offset
					 provisions of their new source review programs.
(b) Interchangeable credits must be certified
					 by the District in which the generation occurs and registered in that
					 District's emission reduction credit bank prior to use. Districts within the
					 same nonattainment area may establish a multi-district banking
					 program.
(c) Districts, in
					 consultation with the Air Resources Board, shall adopt enforceable technical
					 protocols that define how emission reductions will be calculated for purposes
					 of certifying them as interchangeable credits.
(d) Use of interchangeable credits must, in
					 the aggregate, result in no greater annual pollutant-specific emissions than
					 would have occurred in lieu of trading, consistent with the District's portion
					 of the air quality plan. The assessment of equivalency shall take into account
					 the exceedance season for each affected nonattainment pollutant.
(e) Districts shall ensure compliance with
					 federal, state and District requirements governing credit generation and use
					 through permit conditions or other enforceable instruments.
(f) Districts shall not allow the use of
					 emission reduction credits to comply with the "best available control
					 technology" requirements of sections
					 40405
					 and
					 40918-
					 40920.5
					 of the Health and Safety Code, or with any technology-based requirements of
					 sections 111,
					 169,
					 171 and
					 173 of the federal Clean Air Act
					 (42 U.S.C.
					 7411,
					 7479,
					 7501,
					 7503).
(g) Districts may authorize the use of
					 interchangeable credits consistent with any federal, state, or local
					 requirements applicable to toxic air contaminants, only if allowed by
					 regulations established pursuant to section
					 39665 et seq. of the Health and
					 Safety Code, and section
					 112 of the federal Clean Air Act
					 (42 U.S.C.
					 7412).
(h) Surplus emission reductions that meet the
					 requirements of Health and Safety Code section
					 40714.5
					 can be used to create interchangeable credits. If not already accounted for in
					 District air quality plans, baseline emissions from qualifying sources must be
					 included and accounted for in the next update to the plan.
(i) Emission reduction credits from permitted
					 stationary sources that were certified and banked solely for use in a
					 District's new source review program must be included and accounted for in the
					 air quality plan prior to use in a interchangeable credit trading
					 program.
(j) Emission reduction
					 credits or market-based trading instruments generated under programs authorized
					 by Health and Safety Code sections
					 39616
					 and
					 40440.1
					 may be used interchangeably outside the market incentive program only upon a
					 determination by the District, based upon a study conducted by the District
					 that, in the aggregate, such credits represent real reductions, and provided
					 that:
(1) The District submits its request
					 and the above study to the ARB at least 120 days prior to the intended
					 interchangeable use of those credits outside of the original market incentive
					 program.
(2) ARB concurs in writing
					 that the District's submittal regarding the interchangeable use of such credits
					 complies with all applicable requirements including the criteria in Health and
					 Safety Code section
					 39616(c);
					 as it pertains to this program. ARB shall provide a written response containing
					 its finding within 90 days of receipt of the District's
					 submittal.