On November 5, 2010, the Governing Board of the South Coast Air Quality Management District (South Coast AQMD) adopted amendments to its Regional Clean Air Incentives Market (RECLAIM) program that will result in cumulative reductions of 5.7 tons per day, or more than 51 percent reduction, of oxides of sulfur (SOx) from all RECLAIM facilities by 2019. The changes are to be implemented in phases: 3 tons per day in 2013, 4 tons per day in each year from 2014 through 2016, 5 tons per day in 2017 and 2018, and 5.7 tons per day in 2019 and beyond.

Pursuant to the amended Rule 2002 (f)(1), the SOx RTC Holdings as of November 5, 2010 for Compliance Year 2013 and thereafter are adjusted by multiplying the amounts of the current RTC holdings by the following adjustment factors for the corresponding compliance years, to obtain tradable/usable and non-tradable/non-usable holdings:

The amended rules specified that the above adjustment factors are to be applied differently to the following three groups of RTC holders: