(a) The owner and/or operator of a Section 185 Account
subject to this subchapter may submit a request to partially or completely
fulfill its Failure to Attain Fee obligation by contributing to a
Supplemental Environmental Project (SEP), on a volatile organic compounds
(VOC) or nitrogen oxides (NOX ) specific
basis by either:
(1) an amount equivalent to the tons on which the Failure
to Attain Fee has been assessed; or
(2) an amount equivalent to the Failure to Attain Fee
amount assessed.
(b) The SEP must directly reduce the amount of VOC
and/or NOX emissions in the Houston-Galveston-Brazoria
one-hour ozone nonattainment area.
(c) The SEP must be enforceable through an Agreed Order
or other enforceable document.
(d) The use of SEP funds must be on a dollar-for-dollar
basis and shall not be discounted due to the passage of time. Credit
from SEP funds may be accumulated from year to year, and if a surplus
exists in any given year, the funds may be used to offset the calculated
Failure to Attain Fee as needed.
(e) Funds in a SEP used to offset an administrative
penalty cannot be used to offset a Failure to Attain Fee obligation.
(f) The use of a SEP to fulfill a Failure to Attain
Fee obligation is subject to approval by the executive director.
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