Emission reduction credits: private and public moneys.

Existing law prohibits the creation of an emission reduction credit from air pollution reductions funded by certain public programs. Existing law creates air quality management districts and air pollution control districts and requires these districts, except as otherwise provided, to establish a system by which all reductions in the emission of air contaminants that are to be used to offset certain future increases in the emission of air contaminants are to be banked prior to use to offset future increases in emissions. This bill would authorize a district to create an emission reduction credit from a marine vessel or locomotive emission reduction project that is funded by both public and private moneys. An emission reduction credit created pursuant to this provision would be created only for the percentage of the emission reduction project that is paid for by private moneys. The bill would provide that the state share of the credit would be 80%, and the Treasurer would be required to sell this ownership share, and deposit the proceeds into the Emission Reduction Credit Sales Fund, which the bill would create.