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The equipment utilized for the specific Industrial process is permanently dismantled,demolished, and/or removed from the Industrial Property; or The equipment utilized for the specific Industrial process, or the entire building that encompasses the process, is permanently disconnected from all utilities and all raw material and/or component feed devices,and is substantially rendered permanently unusable for its previous purpose. In addition,this information must have been disclosed to MCES within 30 days after the end of the calendar year in which the change(s)occurred and the disclosure must request review as a permanent process change for SAC purposes.MCES will review, on a case-by-case basis, all claims for SAC Credits based on a permanent process changes. MCES reserves the right to refuse the Credits entirely unless able to inspect the Industrial Property to determine if conditions necessary to allow SAC Credits for a claimed permanent process change exist. Further,the criteria and provisions specified in this manual apply only to Industrial Properties that will continue to operate. If an Industrial Property ends its business activity,then Commercial Property SAC Credit provisions apply. At such time Credits are made available to the Community involved, and the Community uses them Community-Wide,the SAC units assigned to the Industrial Property will be reduced by the corresponding number.Any future increases in use of the MDS at the Industrial Property will be subject to SAC payment requirements in accordance with applicable policies and rules, at the SAC rate in effect at the time of payment.Note:that any amount of Assigned SAC Baseline over the potential SAC Credits(SAC paid)is not eligible for Community-Wide Credits at any time. 5.3.2.4 Permitted Industrial User Baseline Determination If a building's prior use is unknown, 80%of gross square footage is used to calculate Credit using the warehouse criteria.If the building is gone and the square footage is not known,one Credit per building will be assigned. A minimum charge for each individual business within a building is not allowed. Where the prior use was a MCES Permitted Industrial User,the Assigned SAC Baseline of the old business use for this property may possibly be retained pursuant to Section 5.3.1.5. If the Assigned SAC Baseline is not transferred,the new Baseline will be the prior user's Maximum Demand recognized during their most recent Capacity Demand Review(plus any additional SAC paid since the most recent Capacity Demand Review). This intentionally excludes any growth in demand since the most recent Capacity Demand Review,as that capacity would not have been paid for(i.e. charged SAC). Creditable SAC is often less than the Assigned SAC Baseline for an Industrial Site, and paid SAC is often less than creditable SAC. Only where SAC was actually paid for a Site, and to the extent of the units paid, is a Net Credit available to the Community. 5.3.2.5 Reporting Requirements All Demolitions that may impact the Assigned SAC Baseline or creditable SAC must be reported by January 30 following the calendar year during which the Demolition permit was issued or change occurred, in order for the prior use to be eligible for any Credit on the property. For example, if a Demolition permit is issued in September 2014,the Demolition must be reported to MCES by January 30, 2015. Monthly reporting of all Demolitions is recommended. This establishes the potential Credit(s)that may be allowed when a New Use occurs on the Site. 5.3.2.6 Merging or Splitting Properties If multiple properties are merged into a single legal description,the potential SAC Credit for the newly created parcel is the sum of the two individual properties' potential Credit. Page I27