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The South Coast Air Quality Management District (SCAQMD) held a public consultation meeting on September 29, 2015 to discuss proposed amendments to Regulation XX, Regional Clean Air Incentives Market (RECLAIM). The rule updates are anticipated to reduce NOx emissions to help the South Coast area meet federal and state air quality standards.

Regulation XX includes provisions to regulate NOx emissions from facilities through the implementation of RECLAIM, which is a market-based incentive program that regulates sources of NOx and SOx that exceed 4 tons per year. For applicable facilities, RECLAIM allows regulated sources to buy and sell emission credits (referred to as "RTCs") for compliance purposes. For the past year, the SCAQMD has been studying the feasibility of reducing the permitted RTC allocations for regulated RECLAIM NOx facilities. This NOx reduction (or "shave") is based largely on Best Available Retrofit Control Technology (BARCT) feasibility analysis from refineries and similar large sources. Based on the latest public consultation meeting, the SCAQMD is proposing to reduce NOx emissions by 14 tons per day by 2022. The NOx shave will be phased in over several years starting with 4 tons per day in 2016. It is estimated that RTC allocations for refineries and investors will be shaved by 66%, while non-refineries and power plants will be shaved 47%. However, RECLAIM facilities that are not among the top 90% of RTC holders will not be shaved. The RTC holding freeze date has been chosen to be September 22, 2015.

The public hearing for the proposed amendments to this rule is schedules for November 6, 2015. For more information regarding compliance with this rule, please contact Trinity at (949) 567-9880 or click here.