Regulatory Text: 
SUBCHAPTER H:  EMISSIONS BANKING AND TRADING

DIVISION 3:  MASS EMISSIONS CAP AND TRADE PROGRAM

Outline:
§101.350.  Definitions.
§101.351.  Applicability.
§101.352.  General Provisions.
§101.353.  Allocation of Allowances.
§101.354.  Allowance Deductions.
§101.356.  Allowance Banking and Trading.
§101.358.  Emission Monitoring and Compliance Demonstration.
§101.359.  Reporting.
§101.360.  Level of Activity Certification.
§101.363.  Program Audits and Reports.


§101.350.  Definitions.
As adopted by TNRCC September 26, 2001, effective October 18, 2001.
Approved by EPA November 14, 2001 (66 FR 57260) effective December 14, 2001.

     The following words and terms, when used in this division, shall have the following meanings, unless the context clearly indicates otherwise.

          (1)  Adjustment period - A period of time, beginning on the first day of operation of a facility and ending no more than 180 consecutive days later, used to make corrections and adjustments to achieve normal technical operating characteristics of the facility.

          (2)  Allowance - The authorization to emit one ton of nitrogen oxides (NOx), expressed in tenths of a ton, during a control period.

          (3)  Authorized account representative - The responsible person who is authorized, in writing, to transfer and otherwise manage allowances.

          (4)  Banked allowance - An allowance which is not used to reconcile emissions in the designated year of allocation, but which is carried forward for up to one year and noted in the compliance or broker account as “banked.”
 
          (5)  Broker - A person not required to participate in the requirements of this division who opens an account under this division for the purpose of banking and trading allowances.

          (6)  Broker account - The account where allowances held by a broker are recorded. Allowances held in a broker account may not be used to satisfy compliance requirements for this division.

          (7)  Compliance account - The account where allowances held by a facility or multiple facilities at a single site are recorded for the purposes of meeting the requirements of this division.

          (8)  Control period - The 12-month period beginning January 1 and ending December 31 of each year.  The initial control period begins January 1, 2002.

          (9)  Existing Facility - A new or modified facility that either has submitted an application for a permit under Chapter 116 of this title (relating to Control of Air Pollution by Permits for New Construction or Modification) which the executive director has determined to be administratively complete before January 2, 2001, or has qualified for a permit by rule under Chapter 106 of this title (relating to Permits by Rule) and commenced construction before January 2, 2001.

          (10)  Houston/Galveston (HGA) ozone nonattainment area - As defined in §101.1 of this title (relating to Definitions).

          (11)  Level of activity - The amount of activity at a facility measured in terms of production, fuel use, raw materials input, or other similar units.

          (12)  Person - For the purpose of issuance of allowances under this division, a person includes an individual, a partnership of two or more persons having a joint or common interest, a mutual or cooperative association, or a corporation.

          (13)  Site - As defined in §122.10 of this title (relating to General Definitions).

Adopted September 26, 2001, Effective October 18, 2001
**** end tx 101.350 adopted by TNRCC 09/26/2001 (G-70)**d31*ebze***c1b**


§101.351.  Applicability.
As adopted by TNRCC May 23, 2001, effective June 23, 2001.
Approved by EPA November 14, 2001 (66 FR 57260) effective December 14, 2001.

     This division applies to all stationary facilities which emit nitrogen oxides (NOx) in the Houston/Galveston nonattainment area which are subject to the emission specifications under §§117.106, 117.206, and 117.475 of this title (relating to Emission Specifications for Attainment Demonstration; Emission Specifications for Attainment Demonstration; and Emission Specifications) and which are located at a site where they collectively have a design capacity to emit ten tons or more per year of NOx.

Adopted May 23, 2001, Effective June 13, 2001
**** end tx 101.351 adopted by TNRCC 05/23/2001 (G-68)**d31*ebze***c1b**


§101.352.  General Provisions.
As adopted by TNRCC September 26, 2001, effective October 18, 2001.
Approved by EPA November 14, 2001 (66 FR 57260) effective December 14, 2001.
     
     (a)  Allowances are valid only for the purposes described in this division and cannot be used to meet or exceed the limitations of any annual emission limitation authorized under Chapter 116, Subchapter B, of this title (relating to New Source Review Permits), or any other applicable rule or law.

     (b)  Beginning February 1, 2003, and no later than February 1 following the end of every control period, each site, shall hold a quantity of allowances in its compliance account that is equal to or greater than the total emissions of nitrogen oxides emitted during the control period just ending. Compliance with this division will begin with the initial control period beginning January 1, 2002.

     (c)  An owner or operator of a facility subject to this division may certify reductions from the facility as emission reduction credits (ERCs), provided that:

          (1)  an enforceable and permanent reduction of annual allowances is approved by the executive director; and


          (2)  all applicable requirements of Division 1 of this subchapter (relating to Emission Credit Banking and Trading) are met.

     (d)  Allowances cannot be used for netting requirements under Chapter 116, Subchapter B, Divisions 5 and 6 of this title (relating to Nonattainment Review and Prevention of Significant Deterioration Review). 

     (e)  Allowances may be used simultaneously to satisfy the correlating one to one portion of offset requirements for new or modified facilities subject to federal nonattainment NSR requirements as provided in Chapter 116, Subchapter B, Division 7 of this title (relating to Emission Reductions:  Offsets).

     (f)  An allowance does not constitute a security or a property right.

     (g)  All allowances will be allocated, transferred, or used in tenths of tons.  To determine the number of allowances, the number of allowances will be rounded down to the nearest tenth when determining excess allowances and rounded up to the nearest tenth when determining allowances used. 

     (h)  One compliance account shall be used for multiple facilities required to participate under this division and located at the same site and under common ownership or control.

     (i)  The commission will maintain a registry of the allowances in each compliance account.  The registry will not contain proprietary information.

Adopted September 26, 2001, Effective October 18, 2001
**** end tx 101.352 adopted by TNRCC 09/26/2001 (G-70)**d31*ebze***c1b**


§101.353.  Allocation of Allowances.
As adopted by TNRCC September 26, 2001, effective October 18, 2001.
Approved by EPA November 14, 2001 (66 FR 57260) effective December 14, 2001.

     (a)  Allowances will be deposited into compliance accounts according to the following equation except as provided in subsection (b) or (h) of this section.


                        LAHA * EFfinal
      A = [B] - X[B - (-------------)]
                            2000

Where:

     (1)    A  =  number of allowances rounded to tenths of tons;
     (2)    B  =  the facility’s baseline emission rate and is 
                  calculated as follows:

                  (A)  For facilities in operation prior to 
                  January 1, 1997:


                         (LA97 * EF97) + (LA98 * EF98) + (LA99 * EF99)
                   B =   ----------------------------------------
                                         3(2000)


                  Where:      LA97 = the facility’s level of activity, 
                              as certified by the executive director 
                              for 1997;

                              LA98 = the facility’s level of activity, 
                              as certified by the executive director 
                              for 1998;

                              LA99 = the facility’s level of activity, 
                              as certified by the executive director 
                              for 1999;

                              EF97 = the facility’s emission factor 
                              for 1997 or the emission specifications 
                              under §§117.106, 117.206, and 117.475 of 
                              this title (relating to Emission 
                              Specifications for Attainment 
                              Demonstration; and Emission 
                              Specifications) (ESAD) whichever is 
                              higher, in pounds per unit of activity, 
                              (not to exceed any applicable federal or 
                              state regulation, rule, or permit limit), 
                              as certified by the executive director;

                              EF98 = the facility’s emission factor for 
                              1998 or the emission specifications under 
                              ESAD, whichever is higher, in pounds per 
                              unit of activity, (not to exceed any 
                              applicable federal or state regulation, 
                              rule, or permit limit), as certified by 
                              the executive director;

                              EF99 = the facility’s emission factor for 
                              1999 or the emission specifications under 
                              ESAD, whichever is higher, in pounds per 
                              unit of activity, (not to exceed any 
                              applicable federal or state regulation, 
                              rule, or permit limit), as certified by 
                              the executive director.

                  (B)   For existing facilities not in operation prior 
                        to January 1, 1997 and that have been in 
                        operation less than five complete consecutive 
                        calender years beginning after the end of the
                        adjustment period and have not established two 
                        years of baseline data:


                             LAAllowable  * EFAllowable
                        B =  --------------------
                                   2000

                  Where:      LAAllowable = The level of activity 
                              authorized by the executive director 
                              until such time two consecutive calendar 
                              years of actual level of activity data 
                              is available;

                              EFAllowable = The emission factor or the 
                              emission specifications under ESAD, 
                              whichever is higher, authorized by the 
                              executive director until such time two
                              consecutive calendar years of actual 
                              emission data is available.

                  (C)   For existing facilities not in operation prior 
                        to January 1, 1997 and that have established 
                        two consecutive calendar years of baseline 
                        data out of the first five years of operation
                        following the end of the adjustment period:


                              (LAYear - 1 * EFYear - 1) + (LAYear - 2 * EFYear - 2)
                        B =  ------------------------------------------
                                            2(2000)


               Where:   LAYear-1 = the facility’s level of activity, 
                        as certified by the executive director, for 
                        the first of any two consecutive years within 
                        the first five years of operation;

                        LAYear-2 =  the facility’s level of activity, 
                        as certified by the executive director, for 
                        the second of any two consecutive years within 
                        the first five years of operation;

                        EFYear-1 = the facility’s emission factor or the
                        emission specifications under ESAD, whichever 
                        is higher, in pounds per unit of activity, 
                        (not to exceed any applicable federal or state
                        regulation, rule, or permit limit), as 
                        certified by the executive director, for the 
                        first of any two consecutive years within the 
                        first five years of operation;

                        EFYear-2 =  the facility’s emission factor or 
                        the emission specifications under ESAD, 
                        whichever is higher, in pounds per unit of 
                        activity, (not to exceed any applicable 
                        federal or state regulation, rule, or permit 
                        limit), as certified by the executive 
                        director, for the second of any two consecutive 
                        years within the first five years of operation.

      (3)   X  =  reduction factor, where:

                  (A)   For all boilers, auxiliary steam boilers, and
                        stationary gas turbines (including duct 
                        burners used in turbine exhaust ducts) within 
                        an electric power generating system, as defined 
                        in §117.10(13)(A)(iii) of this title (relating 
                        to Definitions), located in the Houston/
                        Galveston nonattainment area:

                        (i)  for January 1, 2002 through March 31, 2003, 
                              O = 0.00;

                        (ii)  for April 1, 2003 through March 31, 2004, 
                              O = 0.489;

                        (iii)  for April 1, 2004 through March 31, 2007, 
                               O = 0.978;

                        (iv)  on or after April 1, 2007, O = 1.00;

                  (B)   NOT IN SIP

                  (C)   For all other facilities:

                        (i)  for January 1, 2002 through 
                              March 31, 2004, O = 0.00;

                        (ii)  for April 1, 2004 through 
                              March 31, 2005, O = 0.389;

                        (iii)  for April 1, 2005 through 
                               March 31, 2006, O = 0.667;

                        (iv)  for April 1, 2006 through 
                              March 31, 2007,  X = 0.778;

                        (v)  on or after April 1, 2007, X = 1.00;

                  (D)   NOT IN SIP

                  (E)   For calendar years which include two 
                        different reduction factors, the reduction 
                        factor shall be adjusted using the 
                        appropriate ratio to reflect the number of 
                        months covered by each reduction factor.

      (4)   LAHA = historical average level of activity, where:

                  (A)   For facilities in operation prior to 
                        January 1, 1997, the average level of 
                        activity, as certified by the executive 
                        director, for 1997, 1998, and 1999; or

                  (B)   For existing facilities, LA is:

                              (i)   the level of activity authorized 
                                    by the executive director until 
                                    such time two consecutive calendar 
                                    years of actual level of activity 
                                    data is available, beginning after 
                                    the end of the adjustment period; or

                              (ii)  when two complete consecutive 
                                    calender years of actual level of 
                                    activity data is available, 
                                    beginning after the end of the 
                                    adjustment period, the level of 
                                    activity becomes the average of the 
                                    facility’s actual level of activity 
                                    over those two consecutive calendar 
                                    years of actual level of activity 
                                    data.

      (5)   EFfinal  =  emission factor, as listed in §§117.106, 
            117.206, or 117.475 of this title.

      (6)   For facilities using alternative emission specifications 
            as allowed in §§117.106(c)(4), 117.206(c)(17), or 
            117.475(c)(6) of this title, the level of activity for any 
            formula will be the lowest of the level of activity as 
            calculated in variables (2)(A), (2)(B), or the level of 
            activity limited by an enforceable limit or commitment 
            necessary to qualify for an alternative emission 
            specification in §§117.106(c)(4), 117.206(c)(17) or 
            117.475(c)(6) of this title.



     (b)  For a new and/or modified facility that has submitted, under Chapter 116 of this title (relating to Control of Air Pollution by Permit for New Construction of Modification), an application which the executive director has not determined to be administratively complete before January 2, 2001, or has qualified for a permit by rule under Chapter 106 of this title (relating to Permits by Rule) and has not commenced construction before January 2, 2001, allowances for each control period or the annual allocation rights shall be acquired from facilities already participating under this division, or in accordance with §101.356(g) of this title (relating to Allowance Banking and Trading).

     (c)  If actual emissions of nitrogen oxides (NOx) during a control period exceed the amount of allowances held in a compliance account on March 1 following the control period, allowances for the next control period will be reduced by an amount equal to the emissions exceeding the allowances in the compliance account plus an additional 10%.  This does not preclude additional enforcement action by the executive director.

     (d)  Allowances will be allocated by the executive director, who will deposit allowances into each compliance account:

          (1)  initially, by January 1, 2002; and

          (2)  subsequently, by January 1 of each following year. 

     (e)  The annual deposit for any control period may be adjusted by the executive director to reflect new or existing state implementation plan requirements.

     (f)  Allowances may be added or deducted by the executive director from compliance accounts following the review of reports required under §101.359 of this title (relating to Reporting).

     (g)  The owner or operator of a facility may, due to extenuating circumstances, request up to two additional calendar years to establish a baseline period more representative of normal operation as determined by the executive director.  Applications for extenuating circumstances must be submitted by the owner or operator of the facility to the executive director:

          (1)  no later than June 30, 2001;

          (2)  for facilities whose baseline as described variable (2)(C) listed in the figure contained in subsection (a) of this section is not complete by June 30, 2001, no later than 90 days after completion of the baseline period; or

          (3) at any time as authorized by the executive director.

     (h)  Allowances calculated under subsection (a) of this section will continue to be based on historical activity levels, despite subsequent reductions in activity levels.  If allowances are being allocated based on allowables and the facility does not achieve two complete consecutive calender years of actual level of activity data, then allowances will not continue to be allocated if the facility ceases operation or is not built.

Adopted September 26, 2001, Effective October 18, 2001
**** end tx 101.353 adopted by TNRCC 09/26/2001 (G-70)**d31*ebze***c1b**


§101.354.  Allowance Deductions.
As adopted by TNRCC September 26, 2001, effective October 18, 2001.
Approved by EPA November 14, 2001 (66 FR 57260) effective December 14, 2001.

     (a)  Allowances will be deducted in tenths of a ton from a site’s compliance account for a control period based upon the monitoring and testing protocols established in §§117.114, 117.214, and 117.479 of this title (relating to Emission Testing and Monitoring for the Houston/Galveston Attainment Demonstration; and Monitoring, Recordkeeping, and Reporting Requirements).

     (b) In the event that the monitoring and testing data required under subsection (a) of this section is missing or unavailable, the facility may report actual emissions for that period of time using the following equation or other listed methods in the following order to determine actual emissions:  continuous monitoring data; periodic monitoring data; testing data; manufacturer’s data; and EPA Compilation of Air Pollution Emission Factors (AP-42).  When reporting actual emissions as required under this subsection, the facility must also submit the justification for not using the methods in subsection (a) of this section and the justification for the method used.


                      LACP * EFCP
                A = -------------
                        2000
Where:

     A     =   Allowances to be subtracted from the compliance account in tenths of tons

     LACP   =   the level of activity during the control period

     EFCP   =   the emission factor for the control period in lb of nitrogen oxides (NOx) per unit of activity

     (c)  If the protocol used to show compliance with this section differs from the protocol used by the commission to establish the allocation of allowances under §101.353 of this title (relating to Allocation of Allowances), the executive director may recalculate the number of allowances allocated per year for consistency between the methods.

     (d)  When deducting allowances from a site’s compliance account for a control period, the executive director will deduct the allowances beginning with the most recently allocated allowances before deducting banked allowances.

     (e)  Allowances allocated in accordance with the variables in (a)(2)(B) listed in Figure 30 TAC §101.353(a) may only be used by the facility for which they were allocated and may not be used by other facilities at the same site during the same control period.

     (f)  On March 1 after every control period, a site shall hold a quantity of allowances in its compliance account that is equal to or greater than the total nitrogen oxides emissions emitted during the prior control period.

Adopted September 26, 2001 Effective October 18, 2001
**** end tx 101.354 adopted by TNRCC 09/26/2001 (G-70)**d31*ebze***c1b**


§101.356.  Allowance Banking and Trading.
As adopted by TNRCC September 26, 2001, effective October 18, 2001.
Approved by EPA November 14, 2001 (66 FR 57261) effective December 14, 2001.

     (a)  Allowances not used for compliance at the end of a control period may be banked for use in the following control period in compliance with §101.354 of this title (relating to Allowance Deductions) or traded except as provided in subsection (c) of this section.

     (b)  Allowances which have not expired or been used may be traded at any time during a control period after they have been allocated except as provided in subsection (d) of this section.

     (c)  The owner or operator of a site receiving allowances on an annual basis may permanently sell those rights to any person.  This request for transfer of ownership shall be completed by the executive director following the submission of a completed ECT-4 Form, Application for Permanent Transfer of Allowance Ownership.  The executive director will issue a letter to the purchaser and seller reflecting this transaction.  The transaction will be considered finalized upon issuance of this letter.

     (d)  Allowances not used for compliance during a control period which were allocated in accordance with the variables in (2)(B) and (3)(B) listed in the figure contained in §101.353(a) of this title (relating to Allocation of Allowances) may not be banked for future use or traded.

     (e)  Only authorized account representatives may trade allowances.

     (f)  Trades will be reviewed for approval by the executive director following the submittal of a completed ECT-2 Form, Application for Transfer of Allowances.  The completed ECT-2 shall include the price paid per allowance and shall be submitted to executive director at least 30 days prior to the allowances being deposited into the transferee’s broker or compliance account.  The executive director will issue a letter to the purchaser and seller reflecting this trade.  The trade will be considered finalized upon issuance of this letter.

     (g)  Sites may use nitrogen oxides (NOx) discrete emission reduction credits (DERCs) or mobile discrete emission reduction credits (MDERCs) which have been generated and acquired in accordance with Division 4 of this subchapter (relating to Discrete Emission Credit Banking and Trading) in place of allowances for compliance with this division in accordance with paragraphs (1) - (9)  of this subsection.  Sites may use volatile organic compound (VOC) DERCs or MDERCs which have been generated and acquired in accordance with Division 4 of this subchapter, in place of allowances for compliance with this division in accordance with paragraphs (1) - (9) of this subsection provided that demonstration has been made and approved by the executive director and the EPA to show that the use of VOC DERCs or MDERCs is equivalent, on a one to one basis or other ratio, to the use of NOx allowances in reducing ozone.

          (1)  MDERCS may be used in lieu of allowances at a ratio of one MDERC for one allowance.

          (2)  Prior to January 1, 2005, DERCs generated prior to January 1, 2005 may be used at a ratio of one DERC for one allowance.

          (3)  DERCs generated prior to January 1, 2005 may be used in lieu of allowances for compliance with this division for the control period beginning January 1, 2005 through December 31, 2005 at a ratio of four DERCs for one allowance.

          (4)  DERCs generated prior to January 1, 2005 may be used in lieu of allowances for compliance with this division for the control period beginning January 1, 2006 through December 31, 2006 at a ratio of seven DERCs for one allowance.

          (5)  DERCs generated prior to January 1, 2005 may be used in lieu of allowances for compliance with this division for the control period beginning January 1, 2007 and all subsequent control periods at a ratio of ten DERCs for one allowance.

          (6)  DERCs generated on or after January 1, 2005 may be used in lieu of allowances at a ratio of one DERC for one allowance.

          (7)  Beginning January 1, 2005, no more than 10,000 DERCs may be used in any combination totaled over all sites in the Houston/Galveston (HGA) ozone nonattainment area during a single calender year.  This restriction does not apply to MDERCs.

          (8)  The 10% environmental contribution and the 5% compliance margin of Division 4 of this subchapter shall not apply.

          (9)  DERCs or MDERCs submitted with a notice of intent to use, DEC-2 Form, for the purpose of compliance with this section, must be submitted to executive director at least 30 days prior to intended use.

     (h)  Emission reduction credits (ERCs) may be converted into a yearly allocation of allowances at the rate of one ERC to one allowance per year only if they were generated prior to December 1, 2000 and provided that:

          (1)  the ERC is quantifiable, real, surplus, enforceable, and permanent as required in §101.302 of this title (relating to General Provisions) at the time the ERC is converted;

          (2)  the ERC was generated in the HGA area;

          (3)  the ERC was generated from a reduction in NOx;

          (4)  the ERC has not expired; and          

          (5)  the owner of the ERC has prior approval from the executive director.

Adopted September 26, 2001, Effective October 18, 2001
**** end tx 101.356 adopted by TNRCC 09/26/2001 (G-70)**d31*ebze***c1b**


§101.358.  Emission Monitoring and Compliance Demonstration.
As adopted by TNRCC December 6, 2000, effective January 18, 2001.
Approved by EPA November 14, 2001 (66 FR 57260) effective December 14, 2001.

     (a)  Monitoring data or other emission quantifications for facilities required to monitor or quantify emissions under any other federal or state program shall be used to show compliance with this division.

     (b)  Facilities not required to monitor or quantify nitrogen oxides emissions shall calculate emissions using good engineering practices, including calculation methodologies in general use and accepted in new source review permitting.

Adopted December 6, 2000, Effective January 18, 2001
**** end tx 101.358 adopted by TNRCC 12/06/2000 (G-66)**d31*ebze***c1b**


§101.359.  Reporting.
As adopted by TNRCC December 6, 2000, effective January 18, 2001.
Approved by EPA November 14, 2001 (66 FR 57260) effective December 14, 2001.

     Beginning March 31, 2003, for each control period, facilities under each compliance account shall submit a completed ECT-1 Form, Annual Compliance Report, to the executive director by March 31 of each year detailing the following:

          (1)  the amount of actual nitrogen oxides (NOx) emissions during the preceding control period;

          (2)  the method of determining NOx emissions, including, but not limited to, any monitoring protocol and results, calculation methodology, level of activity, and emission factor; and

          (3)  a summary of all final trades for the preceding control period.

Adopted December 6, 2000, Effective January 18, 2001
**** end tx 101.359 adopted by TNRCC 12/06/2000 (G-66)**d31*ebze***c1b**


§101.360.  Level of Activity Certification.
As adopted by TNRCC September 26, 2001, effective October 18, 2001
Approved by EPA November 14, 2001 (66 FR 57260) effective December 14, 2001

     (a)  The owner or operator of any facility subject to this division shall certify, no later than June 30, 2001, its historical level of activity by submitting to the executive director a completed ECT-3 Form, Level of Activity Certification, along with any supporting information such as usage records, testing or monitoring data, emission factors, and production records as follows:

          (1)  for facilities in operation prior to January 1, 1997, the level of activity averaged over 1997, 1998, and 1999;

          (2)  for new and modified facilities not in operation prior to January 1, 1997 and either have submitted, under Chapter 116 of this title (relating to Control of Air Pollution by Permits for New Construction or Modification), an application which the executive director has determined to be administratively complete before January 2, 2001, or have qualified for a permit by rule under Chapter 106 of this title (relating to Permits by Rule) and have commenced construction before January 2, 2001, the level of activity authorized by the executive director.

     (b)  The owner or operator of any facility subject to this division who has certified a facility’s allowable level of activity under subsection (a)(2) of this section shall certify, no later than 90 days from the end of its second complete calendar year used to determine its baseline activity, the actual level of activity and actual emission factors for those two years by submitting to the executive director a completed ECT-3 Form, Level of Activity Certification, along with any supporting information such as usage records, testing or monitoring data, and production records.

     (c)   Owners or operators of a site that becomes subject to this division on or after April 1, 2001 by virtue of adding facilities subject to the emission specifications under §§117.106, 117.206, and 117.475 of this title (relating to Emission Specifications for Attainment Demonstrations; and Emission Specifications) shall certify the level of activity for existing facilities in accordance with subsections (a) and (b) of this section, except such certification shall be submitted no later than 90 days from the date the site becomes subject to this division, as determined by the executive director.

Adopted September 26, 2001, Effective October 18, 2001
**** end tx 101.360 adopted by TNRCC 09/26/2001 (G-70)**d31*ebze***c1b**


§101.363.  Program Audits and Reports.
As adopted by TNRCC September 26, 2001, effective October 18, 2001.
Approved by EPA November 14, 2001 (66 FR 57260) effective December 14, 2001.

     (a)  No later than three years after the effective date of this division, and every three years thereafter, the executive director will audit this program.

          (1)  The audit will evaluate the impact of the program on the state's ozone attainment demonstration, the availability and cost of allowances, compliance by the participants, and any other elements the executive director may choose to include.

          (2)  The executive director will recommend measures to remedy any problems identified in the audit.  The trading of allowances, discrete emission reduction credits (DERCs), and/or mobile discrete emission reduction credits (MDERCs) may be discontinued by the executive director in part or in whole and in any manner, with commission approval, as a remedy for problems identified in the program audit.

          (3)  The audit data and results will be completed and submitted to the EPA and made available for public inspection within six months after the audit begins.

     (b)  No later than June 30 following the end of each control period, the executive director shall develop and make available to the general public and EPA, a report that includes:

          (1)  number of allowances allocated to each compliance account;

          (2)  total number of allowances allocated under this division;

          (3)  number of actual nitrogen oxides (NOx) allowances subtracted from each compliance account based on the actual NOx emissions from the site; and

          (4)  a summary of all trades completed under this division.

Adopted September 26, 2001, Effective October 18, 2001
**** end tx 101.363 adopted by TNRCC 09/26/2001 (G-70)**d31*ebze***c1b**
*******end tx chapter 101 subchapter h division 3 ***d31**ebze*****c1b**