| (a) An owner or operator of a unit located in the Dallas-Fort
Worth eight-hour ozone nonattainment area or in the Houston-Galveston-Brazoria
ozone nonattainment area that is not subject to Chapter 101, Subchapter
H, Division 3 of this title (relating to Mass Emissions Cap and Trade
Program) may meet emission control requirements of the sections specified
in paragraphs (1) and (2) of this subsection, by obtaining emission
reductions generated from the TERP as specified in subsection (b)
of this section:
(1) §117.405 of this title (relating to Emission
Specifications for Reasonably Available Control Technology (RACT));
(2) §117.410 or §117.1310 of this title (relating
to Emission Specifications for Eight-Hour Attainment Demonstration).
(b) An owner or operator may obtain emission reductions
generated from TERP, as provided in subsection (a) of this section,
if:
(1) the owner or operator of the site as defined in §122.10
of this title (relating to General Definitions) contributes to the
TERP fund, $75,000 per ton of nitrogen oxides emissions used, not
to exceed 25 tons per year or 0.5 tons per day on a site-wide basis;
(2) the owner or operator of the site demonstrates
to the executive director that the site will be in full compliance
with the applicable emission reduction requirements of this chapter
no later than the fifth anniversary of the date that the emission
reductions would otherwise be required;
(3) emissions from the site are reduced by at least
80% of the required reductions;
(4) the reductions accomplished under the TERP have
not been previously used to meet reduction requirements under a state
implementation plan attainment demonstration;
(5) the reductions accomplished under the TERP are
used in the same nonattainment area that they are generated; and
(6) the executive director approves a petition submitted
by the owner or operator of the site that demonstrates that it is
technically infeasible to comply with applicable emission reduction
requirements of this chapter above 80% of the required reductions.
When considering technical infeasibility the executive director may
consider, but will not be limited to:
(A) current technology;
(B) adaptability of technology to a particular source;
(C) age and projected useful life of a source; and
(D) cost benefits at the time of application.
(c) The emissions reductions funded under the TERP,
and used to offset commission requirements, must be used to benefit
the community where the site using the emissions reductions is located.
If there are no eligible emissions reduction projects within the community,
the commission may authorize projects in an adjacent community. For
purposes of this section, a community means a Justice of the Peace
precinct.
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