(a) The executive director shall deposit allowances
into a compliance account as follows.
(1) For a site located in Harris County, allowances
will be determined using the following equation:
Attached Graphic
(2) For a site in Harris County not in operation or
with HRVOC emissions that are not representative of permitted normal
routine operation due to an authorized modification that resulted
in an HRVOC emission reduction during the baseline emissions period,
the owner or operator may request from the executive director the
use of any allowance stream acquired from facilities previously participating
in the HRVOC Emissions Cap and Trade program in lieu of reallocation
until the alternate baseline emissions are established for the site,
according to the following:
(A) this allowance stream is less than the HRVOC permit
allowable limit in effect at the time the facility commences operation;
(B) the baseline emissions period for any site under
this paragraph will be any consecutive 24 months from 2010 - 2012;
and
(C) beginning with the 2014 control period, all sites
will receive an allocation in accordance with the methodology under
paragraph (1) of this subsection.
(3) A site meeting the following conditions may request
to use an alternative baseline emissions period consisting of the
two consecutive calendar-year control periods immediately preceding
the baseline emissions period defined under §101.390 of this
title (relating to Definitions):
(A) the site used continuous flow rate monitoring and
speciation of HRVOC to determine HRVOC emissions during the alternative
baseline period;
(B) the site had permanent, voluntary, and quantifiable
HRVOC emission reductions in an amount equal to or greater than 25
tons resulting in a site-wide reduction in HRVOC emissions of at least
25% as calculated by comparing the average HRVOC emissions from the
alternate baseline period to the baseline emissions period defined
under §101.390 of this title;
(C) qualifying HRVOC emission reductions must have
been made enforceable by a permit application submitted under Chapter
116 of this title (relating to Control of Air Pollution by Permits
for New Construction or Modification) or other submittal to the executive
director no later than April 1, 2010; and
(D) a request for an alternative baseline period must
be received by the executive director no later than July 1, 2010.
(4) For a site located in Brazoria, Chambers, Fort
Bend, Galveston, Liberty, Montgomery, and Waller Counties, allowances
will be determined using the following equation.
Attached Graphic
(5) Uncontrolled emissions for affected facility types
for use in determining site allocations under paragraph (1) of this
subsection must be calculated as follows.
(A) For flares, the uncontrolled emissions are equal
to actual average HRVOC emissions from routine normal operation during
the baseline emissions period for that facility divided by one minus
the average percent control efficiency specifications for flares in
§115.725(d) of this title (relating to Monitoring and Testing
Requirements).
(B) For heaters, boilers, furnaces, thermal and catalytic
oxidizers, and other combustion control devices combusting HRVOC streams,
the uncontrolled emissions must be calculated by dividing actual average
emissions from routine normal operation during the baseline emissions
period for each facility by one minus 99%, or by one minus the actual
monitored HRVOC control efficiency for the facility, not to exceed
99.9%, if that facility has demonstrated the actual monitored HRVOC
control efficiency through stack performance testing.
(C) For any other facility without a demonstrated combustion
control efficiency, the control efficiency is equal to zero; therefore,
the uncontrolled emissions will be equal to the actual HRVOC emissions
from routine normal operation.
(D) For a site that employs a flare or vent gas recovery
or flare minimization control strategy that is not requesting the
use of an alternative baseline emissions period under paragraph (3)
of this subsection, the owner or operator may request to include the
amount of any quantifiable reduction in actual HRVOC emissions attributable
to the use of flare or vent gas recovery as uncontrolled emissions,
subject to approval by the executive director. The amount of quantified
reductions is equal to the difference of the average actual HRVOC
emissions from routine normal operation during a consecutive 12-month
period before the 2006 - 2009 baseline emissions period and the implementation
of the HRVOC gas recovery or flare minimization control strategy and
the enforceable allowable HRVOC permit limit for the affected facility
after the recovery-based emissions reduction strategy implementation.
The average actual HRVOC emissions used for quantifying the reductions
under this subparagraph must be determined through continuous flow
rate monitoring and HRVOC speciation testing. This allowable emissions
limit must be made enforceable through a permit application submitted
under Chapter 116 of this title (relating to Control of Air Pollution
by Permits for New Construction or Modification) to the executive
director no later than April 1, 2010. Credit allocated for reductions
due to flare or vent gas recovery cannot also be creditable if the
HRVOC stream is sent to another control device. The creditable emissions
from flare gas recovery calculated in this subparagraph are then converted
to uncontrolled emissions through the use of the average control efficiency
specifications under §115.725(d) of this title.
(E) For a site that has purchased HRVOC allowance streams,
uncontrolled emissions must be the greater of the uncontrolled emissions
calculated under subparagraphs (A) - (C) of this paragraph, or the
sum of the original existing HRVOC allowance allocated according to
the previous allocation methodology and the amount of the allowance
stream in tons. If a site's actual two-high year emissions is less
than the sum of its original existing HRVOC allowance and the amount
of the allowance stream in tons, the owner or operator shall add the
difference to the uncontrolled emissions as actual emissions.
(b) The level of activity of a site will be determined
by summing the levels of activity from the chosen 12 consecutive month
period for each process unit, as defined in §115.10 of this title
(relating to Definitions), located at the site that produce one or
more HRVOCs as an intermediate, by-product, or final product or that
use one or more HRVOCs as a raw material or intermediate to produce
a product.
(c) A site in Harris County subject to the requirements
of this division that receives an HRVOC allocation of less than 5.0
tons will be eligible to receive a minimum allocation of 5.0 tons
of HRVOC allowances per year. A site subject to the requirements of
this division that receives an HRVOC allocation of greater than or
equal to 5.0 tons but less than 10.0 tons will be eligible to receive
a minimum allocation of 10.0 tons of HRVOC allowances per year. This
provision does not apply if the site's allocation falls below a minimum
allocation only because of a transfer of part or all of the site's
allocation.
(d) The executive director will deposit allowances
into each compliance account by January 1 of each year.
(e) The executive director may adjust the deposits
for any control period to reflect new or existing state implementation
plan requirements.
(f) The executive director may add or deduct allowances
from compliance accounts based on the review of reports required under
§101.400 of this title (relating to Reporting).
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Source Note: The provisions of this §101.394 adopted to be effective December 23, 2004, 29 TexReg 11592; amended to be effective April 1, 2010, 35 TexReg 2556; amended to be effective June 25, 2015, 40 TexReg 3848 |