(1) Public Workshops: ARB must hold at least one public workshop to solicit comments on the development of each year's proposed Funding Plan.

(2) Public Comment Period: The Proposed Funding Plan must be published for review and comment by the public no less than 30 calendar days prior to Board consideration.

(3) Board Approval: ARB may solicit each fiscal year's projects only after the Funding Plan has been approved by the Board, and may commit to fund specific projects only after the Legislature has appropriated that fiscal year's funding.

(1) Eligible Projects: The Funding Plan must include a description of the projects eligible for funding in that fiscal year. To receive AQIP funding, a project must be eligible for funding pursuant to Health and Safety Code section 44274(c) and be approved by the Board in the annual Funding Plan.

(2) Funding Targets: The Funding Plan must include funding targets for the eligible projects. The Funding Plan may include a contingency plan for expenditure of funds if applications for projects do not reach the Board-approved funding targets or in the event of other unforeseen circumstances.

(3) Justification: The Funding Plan must include ARB policy and technical justification for that fiscal year's eligible projects and funding targets.

(4) Surplus Emission Reductions: Emission reductions achieved by AQIP projects in the Funding Plan must not be required by any federal, State, or local regulation, memorandum of understanding/agreement with a regulatory agency, settlement agreement, mitigation requirement, or other local mandate. No emission reductions generated by an AQIP grant shall be used as a marketable emission reduction credit, or to offset any emission reduction obligation of any person or entity. The Funding Plan may include additional project eligibility criteria to ensure surplus emission reductions.