| (a) An allowance may be used only for the purposes
described in this division and only for an affected facility. An allowance
may not be used for any purpose that is not described in this division
or to meet or exceed the limitations authorized under Chapter 116,
Subchapter B of this title (relating to New Source Review Permits),
or any other applicable local, state, or federal requirement.
(b) No later than March 1 after each control period,
the quantity of allowances in a site's compliance account must be
equal to or greater than the total highly reactive volatile organic
compound (HRVOC) emissions from each affected facility at the site
during the control period.
(c) An allowance may not be used to satisfy netting
requirements under Chapter 116, Subchapter B, Divisions 5 and 6 of
this title (relating to Nonattainment Review Permits; and Prevention
of Significant Deterioration Review).
(d) An allowance may be used to offset volatile organic
compound (VOC) emissions from an affected facility if such use is
authorized in a nonattainment new source review (NNSR) permit issued
under Chapter 116, Subchapter B of this title with the following conditions.
(1) The owner or operator shall use a permanent allowance
allocation stream equal to the amount specified in the NNSR permit
to offset VOC emissions from an affected facility. A vintage allowance
cannot be used as an offset. An allowance used for offsets may not
be banked, traded, or used for any other purpose except as allowed
in §101.396(e) of this title (relating to Allowance Deductions).
(2) At least 30 days before the start of operation
of an affected facility using allowances as offsets, the owner or
operator shall submit an application form specified by the executive
director.
(A) Except as provided in paragraph (3) of this subsection,
the executive director shall permanently set aside in the site's compliance
account an allowance used for the one-to-one portion of the offset
ratio. If an allowance set aside for offsets devalues in accordance
with §101.394(a)(1) or (f) of this title (relating to Allocation
of Allowances), the owner or operator shall submit the application
at least 30 days before the shortfall to revise the amount of allowances
set aside for offsets. At the end of each control period, the executive
director shall deduct from the site's compliance account all allowances
set aside as offsets.
(B) The executive director shall permanently retain
an allowance used for the environmental contribution portion of the
offset ratio. An allowance used for this purpose cannot be used for
compliance with this division or devalued due to future regulatory
changes except as required in §101.394(a)(1) of this title.
(3) The owner or operator may submit a request to the
executive director to release an allowance used for offsets. If approved,
the executive director will release the allowances for use in the
control period following the date that the request is submitted. Allowances
will not be released retroactively for any previous control periods.
A request may be submitted if the owner or operator:
(A) receives authorization in the NNSR permit for the
affected facility to use an alternative means of compliance for any
portion of the VOC offset requirement equivalent to the amount of
allowances the owner or operator requests to have released for the
affected facility; or
(B) permanently shuts down the affected facility, except
that an allowance used for the environmental contribution portion
of the offset ratio does not qualify for release under this paragraph.
(e) An allowance does not constitute a security or
a property right.
(f) An allowance will be allocated, traded, and used
in tenths of tons. The number of allowances will be rounded up to
the nearest tenth of a ton when determining allowances used.
(g) The owner or operator shall use one compliance
account for all affected facilities located at the same site and are
under common ownership or control.
(h) The executive director shall maintain a registry
of the allowances in each compliance account and broker account. The
registry will not contain proprietary information.
(i) The owner or operator of an affected facility may
certify reductions from an affected facility as VOC emission reduction
credits (ERCs), provided that:
(1) an enforceable and permanent reduction of annual
allowances is approved by the executive director at a ratio of 1.0
ton of allowances per year for each 1.0 ton per year of ERCs generated
from HRVOC reductions; and
(2) all applicable requirements of Division 1 of this
subchapter (relating to Emission Credit Program) are met.
(j) If there is a change in ownership of a site subject
to this division, the new owner of the site is responsible for complying
with the requirements of this division beginning with the control
period during which the site was purchased. The new owner shall contact
the executive director to request a compliance account for the site.
The new owner must acquire allowances in accordance with §101.399
of this title (relating to Allowance Banking and Trading).
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| Source Note: The provisions of this §101.393 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 |
