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TITLE 30ENVIRONMENTAL QUALITY
PART 1TEXAS COMMISSION ON ENVIRONMENTAL QUALITY
CHAPTER 101GENERAL AIR QUALITY RULES
SUBCHAPTER HEMISSIONS BANKING AND TRADING
DIVISION 3MASS EMISSIONS CAP AND TRADE PROGRAM
RULE §101.353Allocation of Allowances

(a) The executive director shall deposit allowances into a compliance account according to the following equation except as provided by subsection (b) or (g) of this section.

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(b) The owner or operator of the following affected facilities shall acquire allowances for each control period or the annual allocation from a facility already participating under this division in accordance with §101.356 of this title (relating to Allowance Banking and Trading):

  (1) a new or modified facility for which the owner or operator submitted, under Chapter 116 of this title (relating to Control of Air Pollution by Permits for New Construction or Modification), an application that the executive director did not determine to be administratively complete before January 2, 2001;

  (2) a new or modified facility that qualified for a permit by rule under Chapter 106 of this title (relating to Permits by Rule) for which the owner or operator did not commence construction before January 2, 2001;

  (3) a facility in operation before January 1, 1997 located at a site defined on or before December 31, 2000 as a major source, as defined in §117.10 of this title (relating to Definitions), for which the owner or operator did not submit the application form specified by the executive director in accordance with §101.360(a)(1) of this title (relating to Level of Activity Certification) by March 30, 2010; and

  (4) an existing facility located at a site defined before January 1, 2001, as a major source, as defined in §117.10 of this title, for which the owner or operator did not submit the application form specified by the executive director in accordance with §101.360(a)(2) of this title by March 30, 2010.

(c) The executive director will allocate and deposit allowances into each compliance account by January 1 of each year.

(d) The executive director may adjust the deposits for any control period to reflect new or existing state implementation plan requirements.

(e) The executive director may add or deduct allowances from compliance accounts based on the review of reports required under §101.359 of this title (relating to Reporting).

(f) The owner or operator of a facility may, due to extenuating circumstances, request a baseline period more representative of normal operation as determined by the executive director. Applications for extenuating circumstances must be submitted by the owner or operator of the facility to the executive director:

  (1) no later than 90 days after completion of the baseline period to request up to two additional calendar years to establish a baseline period for a facility whose baseline as described by variable (B)(i) listed in the figure in subsection (a) of this section is not complete by June 30, 2001; or

  (2) at any time as authorized by the executive director.

(g) An allowance calculated under subsection (a) of this section will continue to be based on historical level of activity, despite subsequent reductions in the level of activity. If an allowance is being allocated based on allowables and the facility does not achieve two complete consecutive calendar years of actual level of activity data, then the allowance will not continue to be allocated if the facility ceases operation or is not built.


Source Note: The provisions of this §101.353 adopted to be effective January 18, 2001, 26 TexReg 282; amended to be effective October 18, 2001, 26 TexReg 8073; amended to be effective January 17, 2003, 28 TexReg 83; amended to be effective August 16, 2007, 32 TexReg 4985; amended to be effective April 1, 2010, 35 TexReg 2574; amended to be effective June 25, 2015, 40 TexReg 3848

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