| (a) Requirements to use discrete emission credits.
Discrete emission credits may be used if the following requirements
are met.
(1) The user shall have ownership of a sufficient amount
of discrete emission credits before the use period for which the specific
discrete emission credits are to be used.
(2) The user shall hold sufficient discrete emission
credits to cover the user's compliance obligation at all times.
(3) The user shall acquire additional discrete emission
credits during the use period if it is determined the user does not
possess enough discrete emission credits to cover the entire use period.
The user shall acquire additional credits as allowed under this section
prior to the shortfall, or be in violation of this section.
(4) The user may acquire and use only discrete emission
credits listed in the registry.
(5) The user shall obtain executive director approval
to use nitrogen oxides (NOX ) discrete
emission reduction credits (DERCs) in Collin, Dallas, Denton, Ellis,
Johnson, Kaufman, Parker, Rockwall, and Tarrant Counties as provided
by subsection (f) of this section.
(6) A discrete emission credit may not be used unless
it is available in the account for the site where it will be used.
(b) Use of discrete emission credits. With the exception
of uses prohibited in subsection (c) of this section or precluded
by a commission order or a condition within an authorization under
the same commission account number, discrete emission credits may
be used to meet or demonstrate compliance with any facility or mobile
regulatory requirement including the following:
(1) to exceed any allowable emission level, if the
following conditions are met:
(A) in ozone nonattainment areas, permitted facilities
may use discrete emission credits to exceed permit allowables by no
more than 10 tons for NOX or 5 tons for
volatile organic compounds in a 12-month period as approved by the
executive director. This use is limited to one exceedance, up to 12
months within any 24-month period, per use strategy. The user shall
demonstrate that there will be no adverse impacts from the use of
discrete emission credits at the levels requested; or
(B) at permitted facilities in counties or portions
of counties designated as attainment or, attainment/unclassifiable,
or unclassifiable, discrete emission credits may be used to exceed
permit allowables by values not to exceed the prevention of significant
deterioration significance levels as provided in 40 Code of Federal
Regulations (CFR) §52.21(b)(23), as approved by the executive
director before use. This use is limited to one exceedance, up to
12 months within any 24-month period, per use strategy. The user shall
demonstrate that there will be no adverse impacts from the use of
discrete emission credits at the levels requested;
(2) as new source review (NSR) permit offsets, if the
following requirements are met:
(A) the user shall obtain the executive director's
approval prior to the use of specific discrete emission credits to
cover, at a minimum, one year of operation of the new or modified
facility in the NSR permit;
(B) the amount of discrete emission credits needed
for NSR offsets equals the quantity of tons needed to achieve the
maximum allowable emission level set in the user's NSR permit. The
user shall also purchase and retire enough discrete emission credits
to meet the offset ratio requirement in the user's ozone nonattainment
area. The user shall purchase and retire either the environmental
contribution of 10% or the offset ratio, whichever is higher; and
(C) the user shall submit a completed application form
specified by the executive director at least 90 days before the start
of operation and at least 90 days before continuing operation for
any period in which discrete emission credits not included in a prior
application will be used as offsets;
(3) to comply with the Mass Emissions Cap and Trade
Program requirements as provided by §101.356(h) of this title
(relating to Allowance Banking and Trading); or
(4) to comply with Chapter 115 or 117 of this title
(relating to Control of Air Pollution from Volatile Organic Compounds;
and Control of Air Pollution from Nitrogen Compounds), as allowed.
(c) Discrete emission credit use prohibitions. A discrete
emission credit may not be used under this division:
(1) before it has been acquired by the user;
(2) for netting to avoid the applicability of federal
and state NSR requirements;
(3) to meet (as codified in 42 United States Code (USC),
Federal Clean Air Act (FCAA)) requirements for:
(A) new source performance standards under FCAA, §111
(42 USC, §7411);
(B) lowest achievable emission rate standards under
FCAA, §173(a)(2) (42 USC, §7503(a)(2));
(C) best available control technology standards under
FCAA, §165(a)(4) (42 USC, §7475(a)(4)) or Texas Health and
Safety Code, §382.0518(b)(1);
(D) hazardous air pollutants standards under FCAA,
§112 (42 USC, §7412), including the requirements for maximum
achievable control technology;
(E) standards for solid waste combustion under FCAA,
§129 (42 USC, §7429);
(F) requirements for a vehicle inspection and maintenance
program under FCAA, §182(b)(4) or (c)(3) (42 USC, §7511a(b)(4)
or (c)(3));
(G) ozone control standards set under FCAA, §183(e)
and (f) (42 USC, §7511b(e) and (f));
(H) clean-fueled vehicle requirements under FCAA, §246
(42 USC, §7586);
(I) motor vehicle emissions standards under FCAA, §202
(42 USC, §7521);
(J) standards for non-road vehicles under FCAA, §213
(42 USC, §7547);
(K) requirements for reformulated gasoline under FCAA,
§211(k) (42 USC, §7545); or
(L) requirements for Reid vapor pressure standards
under FCAA, §211(h) and (i) (42 USC, §7545(h) and (i));
(4) to allow an emissions increase of an air contaminant
above a level authorized in a permit or other authorization that exceeds
the limitations of §106.261 or §106.262 of this title (relating
to Facilities (Emission Limitations); and Facilities (Emission and
Distance Limitations)) except as approved by the executive director
and the United States Environmental Protection Agency (EPA). This
paragraph does not apply to limit the use of discrete emission credits
in lieu of allowances under §101.356 of this title;
(5) to authorize a facility whose emissions are enforceably
limited to below applicable major source threshold levels, as defined
in §122.10 of this title (relating to General Definitions), to
operate with actual emissions above those levels without triggering
applicable requirements that would otherwise be triggered by such
major source status;
(6) to exceed an allowable emission level where the
exceedance would cause or contribute to a condition of air pollution
as determined by the executive director; or
(7) in Collin, Dallas, Denton, Ellis, Johnson, Kaufman,
Parker, Rockwall, and Tarrant Counties, if the NOX DERC
usage requested exceeds the limit specified in subsection (f) of this
section.
(d) Notice of intent to use.
(1) A completed application form specified by the executive
director, signed by an authorized representative of the applicant,
must be submitted to the executive director in accordance with the
following requirements.
(A) Discrete emission credits may be used only after
the applicant has submitted the notice and received executive director
approval.
(B) The application must be submitted:
(i) except as provided in subsection (f)(4) of this
section, for NOX DERC use in Collin,
Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant
Counties, by August 1 before the beginning of the calendar year in
which the DERCs are intended for use;
(ii) for use for the Mass Emissions Cap and Trade Program
in accordance with §101.356 of this title, by October 1 of the
control period in which the DERC are intended for use; or
(iii) for use for NSR offsets, as required by subsection
(b)(2)(C) of this section; or
(iv) for all other use, at least 45 days before the
first day of the use period if the discrete emission credits were
generated from a facility, 90 days if the discrete emission credits
were generated from a mobile source, and every 12 months thereafter
for each subsequent year if the use period exceeds 12 months.
(C) A copy of the application must also be sent to
the federal land manager 30 days prior to use if the user is located
within 100 kilometers of a Class I area, as listed in 40 CFR Part
81 (2001).
Cont'd... |
