CA Health & Safety Code Section 40918.7

(a)

Emission reduction offset credits created pursuant to subdivision (p) of Section 41865 shall be approved for use by a stationary source in another district if all of the following conditions are met:

(1)

The district containing the source providing the offset credits does not have a no-net-increase permitting program in its attainment plan.

(2)

The district where the offset credits are to be used is designated as having moderate air pollution.

(3)

The district where the offset credits are to be used is located within the same air basin as, or within an air basin that is contiguous to, the air basin in which the district containing the source providing the offsets is located.

(4)

The site where the offset credits will be used is located within 200 linear air miles from the source providing the offset credits.

(b)

If all of the conditions specified in subdivision (a) are met, the district receiving the offset credit shall do both of the following:

(1)

Determine the type and quantity of the emission reductions to be credited.

(2)

Adopt a rule or regulation to discount the emission reductions credited to the stationary source. The discount shall not be less than the emission reduction for offsets from comparable sources located within the district boundaries.