Aug. 2, 2002
Resulting from Ongoing Investigation
The South Coast Air Quality Management District issued a violation notice
today to Automated Credit Exchange and its principal, Anne Sholtz, for alleged
violations of the agency’s emissions credit trading regulations.
"This notice of violation stems from our ongoing investigation into ACE’s
trading activities in the RECLAIM market," said Barry Wallerstein, AQMD’s
executive officer.
"Although this violation alleges false reports in RECLAIM trades, no excess
emissions occurred and the environment was not harmed," Wallerstein said.
AQMD cited Automated Credit Exchange Inc. and Automated Credit Exchange LLC,
both of Pasadena, and Sholtz for two counts of allegedly violating AQMD’s Rule
2007 on March 12, 2002. The rule requires prompt and accurate reporting of
RECLAIM emission credit trades. Under the California Health and Safety Code,
each count carries a maximum civil penalty of $10,000.
"We are continuing our investigation and will vigorously prosecute any
individuals who have engaged in fraudulent trades," Wallerstein said.
RECLAIM, short for the REgional CLean Air Incentives Market, is an emissions
"cap-and-trade" program for more than 300 of the largest emitting facilities in
Southern California. Under RECLAIM, each facility is issued an annual allocation
for a specified number of pounds of nitrogen oxide and sulfur oxide emissions.
Both pollutants contribute to formation of the region’s ozone smog and
particulate pollution.
If a facility reduces its emissions below its annual cap, for example by
installing a pollution control device, it can sell its excess credits to other
companies in the program that want to emit more than their annual allocation.
Over time each company’s allocation as well as the total emissions from all
facilities declines significantly, helping to improve the region’s air quality.
AQMD is the air pollution control agency for Orange County and major portions
of Los Angeles, San Bernardino and Riverside counties.
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