(a) VAVR enterprise operators may generate emission reduction credits that can be sold on the open market.
(b) VAVR enterprise operators may not make emission reduction credits available for purchase until they are approved and issued by the district.
(c) Districts shall not approve and issue emission reduction credits unless a VAVR enterprise operator demonstrates compliance with all applicable provisions in this regulation.
(d) Each district shall be responsible for approving and issuing emission reduction credits generated to VAVR enterprise operators, based on data supplied by each enterprise operator pursuant to Sections 2609.
(e) A district shall not approve and issue emission reduction credits for any vehicle retired within sixty-one to ninety (61-90) days of its next required Smog Check inspection until it has verified that the vehicle did not fail its Smog Check inspection during that time frame pursuant to Section 2602(c). Emission reduction credits shall not be issued for any vehicle failing its Smog Check inspection during the sixty-one to ninety (61-90) day time frame.
(f) The default lifetime of emission reduction credits is three (3) years;
(1) The maximum credit amount shall be no greater than the calculated emission reduction on which the credit is based;
(2) Districts may apply a discount factor to credits calculated under these regulations, consistent with applicable district and Board credit rules and programs; and
(3) Credit usage shall be in accordance with all federal, state, and local laws and regulations in effect at time of usage.
(g) Emission reduction credits shall be generated by the retirement of any vehicle for reductions of NOx, ROG, CO, and PM where the magnitude of the credit for each pollutant shall be determined by the methodology described in Appendix D to this Article, “Calculation of Default Emission Reduction Credit.”
(h) Extra emission reduction credits may be generated by the retirement of any high emitting vehicle for reductions of NOx, ROG, and PM when retired in accordance with Section 2610;
(1) The detailed methodology that will be used to calculate extra emission reductions shall be submitted in a high emitting vehicle VAVR plan, as required by Section 2610(f), by the district or enterprise operator to the ARB for approval;
(2) The methodology for calculating extra emission reductions shall be consistent with the methodologies recommended by the ARB;
(3) The ARB shall publish the methodology for calculating extra emission reductions in the Carl Moyer Program Guidelines, pursuant to Health and Safety Code section 44275 et seq.;
(4) Any calculation of extra emission reductions that is not consistent with the methodology recommended by the ARB shall include a detailed and complete technical justification for the changes and differences;
(5) The ARB shall evaluate the methodology for calculating extra emission reductions within sixty (60) days of receipt using the following criteria:
(A) The methodology must clearly show how emissions are estimated from the raw data or initial measurements through the final emission rate in pounds per year;
(B) The methodology shall include all equations used to estimate the final emission rate, clearly define assumptions and constants, and include references for the derivation of any uncommon equations that are used;
(C) The methodology shall contain an example calculation showing how the final emission rate was calculated from the raw data or initial measurement; and
(D) The methodology must verify that emission reductions are real, surplus, quantifiable, and enforceable; and
(6) A detailed and complete technical justification for any other proposed change from the requirements of Section 2608 shall be provided with the high emitting vehicle VAVR plan.
Credits
Note: Authority cited: Sections 39600, 39601 and 44101, Health and Safety Code. Reference: Sections 39002, 39003, 43000, 43013, 44100, 44101, 44102, 44121 and 44122, Health and Safety Code.
2. Renumbering of former section 2608 to section 2609 and renumbering of former section 2607 to section 2608, including amendment of subsection (a), filed 1-3-2003; operative 1-3-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 1).
