R307-403-4. Offsets: General Requirements

  (1) All general offset permitting requirements apply for all offsets regardless of the pollutant at issue. General offset permitting requirements shall be imposed immediately and directly on all new major stationary sources or major modifications located in a nonattainment area that are major for the pollutant, or any individual precursor to the pollutant, for which the area is designated nonattainment.

  (2) Emission offsets must be obtained from the same source or other sources in the same nonattainment area except that the owner or operator of a source may obtain emission offsets in another nonattainment area if:

  (a) the other area has an equal or higher nonattainment classification than the area in which the source is located; and

  (b) emissions from such other area contribute to a violation of the national ambient air quality standard in the nonattainment area in which the source is located or which is impacted by the source.

  (3) Any emission offsets required for a new or modified source shall be in effect and enforceable before a new or modified source commences construction. The new or modified source shall assure that the total tonnage of increased emissions of the air pollutant from the new or modified source shall be offset by an equal or greater reduction, as applicable, in the actual emissions of such air pollutant from the same or other sources in the area. Offsets may not be traded between pollutants, except as required only to satisfy R307-403-5(1) where it pertains to emission increases that are not considered major for PM₁₀ or a PM₁₀ precursor.

  (4) Emission offsets must be surplus, permanent, quantifiable, and federally enforceable. Emission reductions otherwise required by the federal Clean Air Act or R307, including the State Implementation Plan shall not be creditable as emission reductions for purposes of any offset requirement. Incidental emission reductions which are not otherwise required by federal or state law shall be creditable as emission reductions if such emission reductions meet the requirements of R307-403-4(2) and R307-403-4(3).

  (5) Sources shall be allowed to offset, by alternative or innovative means, emission increases from rocket engine and motor firing, and cleaning related to such firing, at an existing or modified major source that tests rocket engines or motors under the conditions outlined in 42 U.S.C. 7503(e) (Section 173(e)(1) through Section 173(e)(4) of the federal Clean Air Act as amended in 1990).