Ariz. Rev. Stat. § 49-410 – Voluntary Arizona emissions bank; definitions

A. The department shall establish and administer a voluntary Arizona emissions bank for registering the deposit, transfer and use of emission reduction credits. The department shall make information on emission reduction credits deposited in the voluntary Arizona emissions bank easily accessible to the public.
B. This state, any political subdivision of this state and any person that reduces qualifying emissions may apply to the department to certify emission reduction credits to be deposited into the voluntary Arizona emissions bank. To be eligible for certification and deposit in the voluntary Arizona emissions bank, the reduction in qualifying emissions shall be permanent, quantifiable, surplus, real and otherwise enforceable and shall occur after August 6, 1999. This section does not prohibit an activity from receiving credit by means other than the voluntary Arizona emissions bank for emissions reductions.
C. The department shall act on an application submitted under subsection B of this section and certify the amount of the emission reduction credits under rules adopted pursuant to subsection D of this section before the credits may be deposited and used to offset future increases in emissions of air pollutants. Pursuant to title 41, chapter 6, article 8, the department may delegate certification of emission reduction credits to a county or multi-county air quality control region, but shall retain authority to register the deposit, transfer and use of emission reduction credits and administer the voluntary Arizona emissions bank.
D. The department shall adopt rules for the implementation and administration of the voluntary Arizona emissions bank, and establish the criteria the department will use to determine the eligibility of reductions in qualifying emissions for emission reduction credits and the amount of the credits. Except to the extent otherwise required by the clean air act, the rules shall provide for the award of emission reduction credits equal to the full amount of reductions in qualifying emissions that are permanent, quantifiable, surplus, real and otherwise enforceable. The department shall establish by rule a fee system to cover the reasonable costs of administering the voluntary Arizona emissions bank. A county that has been delegated authority to certify emission reduction credits pursuant to subsection C of this section may establish a fee system to cover the reasonable costs of certification in accordance with section 49-112, subsection B. In adopting rules pursuant to this subsection, the department and a county shall consider and make reasonable attempts to mitigate any adverse impact on the commercial trucking industry, including any adverse economic impact and any impact on driver safety.
E. Except to the extent otherwise required by the clean air act, until used or voluntarily retired by the owner, emission reduction credits deposited in the bank:
1. 1. Do not expire.
2. 2. Shall be identified and accounted for in the state implementation plan control strategy for the area in which the reduction in emissions occurred.
3. 3. May not be reduced or withdrawn without permission of the owner.
F. Notwithstanding any other law, this section does not directly or indirectly authorize this state or any political subdivision of this state to establish new or more stringent emissions regulations than provided in existing law for stationary or mobile sources.
G. A fleet owner that applies for emission reduction credits pursuant to this subsection shall specify the composition of its proposed participating fleet.
H. For the purposes of this section, unless the context otherwise requires:
1. 1. "Emission reduction credit" means a reduction in qualifying emissions that has been certified for potential use as an offsetting emission reduction in a permit issued under this chapter, including a permit required by section 173 of the clean air act.
2. 2. "Qualifying emissions" means emissions of any conventional air pollutant, other than elemental lead, or any precursor of a conventional air pollutant from any activity. Qualifying emissions does not include emissions from a fleet of motor vehicles if the fleet operates outside of a nonattainment area.