7130.

 The California Air Quality Zone Program is hereby established for the purpose of creating one or more air quality zones, as described in Section 7131, to provide incentives for owners of mobile and stationary sources of air pollution to invest in air pollution control equipment that produces surplus and quantifiable emission reductions exceeding applicable federal, state, and regional air standards and regulations. The program shall additionally provide incentives to owners of stationary sources to invest in the production and utilization of renewable energy technologies that result in cleaner air.

7130.5.

 For purposes of this chapter the following terms have the following meanings:

(a) “Board” means the State Air Resources Board.

(b) “District” means any regional air pollution control district, county air pollution control district, unified air pollution control district, or air quality management district located in this state.

(c) “Zone” means the California Air Quality Zone designated pursuant to Section 7131.

7131.

 (a) Any district in this state may submit an application to the agency board to propose a geographic area within its jurisdiction to be designated as a zone by the agency board. The agency, in consultation with the board, The board shall review each application for designation as a zone and make its designation based upon a baseline assessment of the air quality in the proposed zone, a proposed program for improving the air quality and enhancing economic opportunities within the proposed zone, and goals and timelines for achieving measurable air quality improvements within the proposed zone.

(b) (1) Except as provided in paragraph (2), the proposed geographic area is eligible for designation if both of the following conditions are met:

(A) The district makes a finding that air quality for that area has nonattainment designations for airborne particulates of PM 2.5, and if the EPA issued nonattainment designations, using the eight-hour rule for ozone, of serious, severe, or extreme in the proposed geographic area.

(B) The proposed geographic area has a countywide unemployment rate that is at least 50 percent higher than the statewide average for two of the three years preceding designation.

(2) Notwithstanding paragraph (1), any seaport, harbor, or enterprise zone within an eligible air district shall be eligible for designation as a zone if it meets the conditions specified in subparagraph (A) of paragraph (1).

(c) The district shall establish definitive boundaries for the area to be included in the application for designation and, if designated by the agency board, the designation shall be binding for a period of seven years. The designation may be extended for subsequent seven-year periods in accordance with the same procedures applicable to the original designation.

(d) Before the zone designation is final, the board shall make a finding that the proposed geographic area meets the air quality criteria of this section.

7132.

 A district may also contract with any public or private entity for purposes of carrying out the district’s duties under the act adding this section.

7133.

 (a) Each district shall report annually to the agency and board regarding the progress of emission reductions and economic and job goals identified in their application within a zone under the jurisdiction of the district.

(b) The agency, in consultation with the board, board shall monitor and review the implementation and progress of each zone based upon, among other things, information provided by the districts, air emission reductions, and economic and job goals achieved within the district.

(c) The agency board may revoke, or not renew, any designation of a zone for which reasonable goals for emission reductions, job creation, or economic development are not met.

7134.

 The agency’s board’s authority to designate a geographic area as a California Air Quality Zone shall expire on January 1, 2017.