(a) Uses for emission credits. Unless precluded by
a commission order or a condition or conditions within an authorization
under the same commission account number, emission credits may be
used as the following:
(1) offsets for a new source, as defined in §101.1
of this title (relating to Definitions), or major modification to
an existing source;
(2) mitigation offsets for action by federal agencies
under 40 Code of Federal Regulations Part 93, Subpart B, Determining
Conformity of General Federal Actions to State or Federal Implementation
Plans;
(3) an alternative means of compliance with volatile
organic compound and nitrogen oxides reduction requirements to the
extent allowed in Chapters 115 and 117 of this title (relating to
Control of Air Pollution from Volatile Organic Compounds; and Control
of Air Pollution from Nitrogen Compounds);
(4) reductions certified as emission credits may be
used in netting by the original applicant, if not used, sold, reserved
for use, or otherwise relied upon, as provided by Chapter 116, Subchapter
B of this title (relating to New Source Review Permits); or
(5) compliance with other requirements as allowed in
any applicable local, state, and federal requirement.
(b) Credit use calculation.
(1) The number of emission credits needed by the user
for offsets shall be determined as provided by Chapter 116, Subchapter
B of this title.
(2) For emission credits used in compliance with Chapter
115 or 117 of this title, the number of emission credits needed should
be determined according to the following equation plus an additional
10% to be retired as an environmental contribution.
Attached Graphic
(3) For emission credits used to comply with §§117.123,
117.320, 117.323, 117.423, 117.1020, or 117.1220 of this title (relating
to Source Cap; and System Cap), the number of emission credits needed
for increasing the 30-day rolling average emission cap or maximum
daily cap should be determined according to the following equation
plus an additional 10% to be retired as an environmental contribution.
Attached Graphic
(4) Emission credits used for compliance with any other
applicable program should be determined in accordance with the requirements
of that program and must contain at least 10% extra to be retired
as an environmental contribution, unless otherwise specified by that
program.
(c) Notice of intent to use emission credits.
(1) The executive director will not accept an application
to use emission credits before the emission credit is available in
the compliance account for the site where it will be used. If the
emission credit will be used for offsets, the executive director will
not accept the emission credit application before the applicable permit
application is administratively complete.
(A) The user shall submit a completed application at
least 90 days before the start of operation for an emission credit
used as offsets in a permit in accordance with Chapter 116 of this
title (relating to Control of Air Pollution by Permits for New Construction
or Modification).
(B) The user shall submit a completed application at
least 90 days before the planned use of an emission credit for compliance
with the requirements of Chapter 115 or 117 of this title or other
programs.
(C) If the executive director approves the emission
credit use, the date the application is submitted will be considered
the date the emission credit is used.
(2) If the executive director denies the facility or
mobile source's use of emission credits, any affected person may file
a motion to overturn within 60 days of the denial. Regardless of the
applicability provisions of §50.131(c)(5) of this title (relating
to Purpose and Applicability), the requirements of §50.139 of
this title (relating to Motion to Overturn Executive Director's Decision)
shall apply. Only an affected person may file a motion to overturn.
(d) Inter-pollutant use of emission credits. With prior
approval from the executive director and the United States Environmental
Protection Agency, a nitrogen oxides or volatile organic compound
emissions credit may be used to meet the offset requirements for the
other ozone precursor if photochemical modeling demonstrates that
the overall air quality and the regulatory design value in the nonattainment
area of use will not be adversely affected by the substitution.
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Source Note: The provisions of this §101.306 adopted to be effective January 17, 2003, 28 TexReg 83; amended to be effective October 26, 2006, 31 TexReg 8684; amended to be effective August 16, 2007, 32 TexReg 4985; amended to be effective June 25, 2015, 40 TexReg 3848; amended to be effective October 12, 2017, 42 TexReg 5441; amended to be effective May 14, 2020, 45 Texeg 3091 |