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Texas SIP: 30 TAC 114.201-114.202. Mobile Emission Reduction Credits; SIP effective 04/09/2001

NOT IN SIP effective 2014-04-01 (TXd149)

Regulatory Text: 

Texas Commission on Environmental Quality

4 Chapter 114 - Control of Air Pollution from Motor Vehicles

4F Repeal of Subchapter F, Vehicle Retirement and Mobile Emission Reduction 
Credits, Division 1, Mobile Emission Reduction Credits; §§ 114.201-114.202.

Repeal adopted by TCEQ June 27, 2007 effective July 19, 2007 (4-69).
Approved by EPA January 31, 2014 (79 FR 5287), effective April 1, 2014 (TXd149),
Regulations.gov document EPA-R06-OAR-2006-0885-0005 [TX053.05].
DIVISION 1 : MOBILE EMISSION REDUCTION CREDITS
§114.201, §114.202

Outline:
§114.201.  Mobile Emission Reduction Credit Program.
§114.202.  Texas Mobile Emission Reduction Credit Fund.


§114.201.  Mobile Emission Reduction Credit Program.
As adopted by TNRCC July 29, 1998, effective August 20, 1998

(Approved by EPA February 7, 2001 (66 FR 09203), effective April 9, 2001)

     (a)  Mobile Emission Reduction Credits (MERCs) will be based on the difference between the emissions from the replacement of a conventional vehicle with a low emission vehicle (LEV).  Program participation is voluntary.  MERCs will be awarded to entities which primarily operate vehicles within the state's nonattainment areas, as identified in §101.1 of this title (relating to Definitions), for any of the following, or combination thereof:

          (1)  The purchase, lease, or acquisition of an LEV which is certified to a more stringent emission standard than the LEV standards.  These vehicles include:

               (A)  ultra-low emission vehicle (ULEV) as certified by the EPA;

               (B)  inherently low emission vehicle (ILEV) EPA certified vehicles, and

               (C)  zero emission vehicle (ZEV) EPA certified vehicles; or

          (2)  The purchase, lease, or acquisition of LEVs in greater numbers than otherwise required under §114.150 or §114.151 of this title (relating to Requirements for Mass Transit Authorities, and Requirements for Local Governments and Private Entities);

          (3)  The purchase, lease, or acquisition of LEVs not required under §114.150 or §114.151 of this title; or

          (4)  The purchase, lease, or acquisition of LEVs prior to the dates under §114.150 or §114.151 of this title.

          (5)  Entering into a binding contract as specified under §114.202 of this title (relating to Texas Mobile Emission Reduction Credit Fund).

     (b)  MERCs may be used as follows:

          (1)  to demonstrate compliance with any applicable mobile source emissions reductions requirements; or

          (2)  to satisfy Reasonably Available Control Technology and Federal Clean Air Act offset requirements subject to the appropriate trading ratios and other commission rules.

          (3)  traded, sold, or banked for later use by fleet vehicle owners or other mobile or stationary sources of emissions within the same affected area without discount or depreciation of such credits.

     (c)  The following restrictions apply to the trading or purchasing of fleet to fleet MERCs:

          (1)  Trades are restricted to the nonattainment area in which they are generated;

          (2)  Light-duty vehicle MERCs are restricted to trading within the light-duty vehicle class; and

          (3)  Heavy-duty vehicle MERCs may be traded within their specific subclass or from a heavier vehicle to a lighter vehicle (downward trading) within the heavy-duty vehicle class.

     (d)  MERCs will be determined in accordance with EPA rules and guidance as follows:

          (1)  For fleet to fleet trading or trading from vehicle owners not subject to the requirements for fleets:

            Frequired - Foptional
credit = ---------------------
             FCV  - FLEV


where:

credit = the credit generated by the vehicle for a fleet to fleet trade;

Frequired = the emission factor for the vehicle that is required;

Foptional = the emission factor for the extra or cleaner than LEVs (ULEV, ILEV, or ZEV);

Fcv          = for light-duty vehicles and trucks, the emission factor for a conventional light-duty vehicle; and for heavy-duty vehicles, the emission factor for a conventional vehicle in the same weight class as the credit generating vehicle; and

FLEV          = for light duty vehicles and trucks, the emission factor for a light-duty vehicle LEV; and for heavy duty vehicles, the emission factor for an LEV in the same weight class as the credit generating vehicle.

          (2)  For trades to stationary sources, the following methodology is used for the calculation of MERCs for volatile organic compounds (VOCs) or oxides of nitrogen (NOx) trades:


                  (Differential vehicle benefit  x VMT  x CF)
MERCgrams/year = ---------------------------------------------
                                   n


where:

differential vehicle benefit = difference in emissions between the LEV and the 
                               conventional vehicle

VMT = estimated total remaining vehicle miles traveled for the vehicle;

CF = conversion factor used only for heavy-duty vehicles, defined as brake specific fuel consumption multiplied by fuel economy multiplied by fuel density; and

n = estimated number of years the vehicle will be in service.

     (e)  In order for credits to be certified as tradable for stationary sources, fleets must have a minimum of one ton per year reduction of VOCs or NOx.  Affected entities may aggregate VOCs or NOx MERCs generated under this section in order to make the minimum one ton of emission reductions for trades to stationary sources. However, no minimum is required for banking credits tradable among fleets.

     (f)  In order to apply for a MERC under subsection (a) of this section, an affected entity or individual must submit the following information to the executive director:

          (1)  the certified emission standard of the vehicle for which the affected entity or individual wishes to make an application for credit;

          (2)  the annual VMT by the vehicle;

          (3)  the amount of time in years this vehicle is expected to be in service; and

          (4)  a current fleet report containing the information required to be submitted under §114.150 of this title or §114.155 of this title (relating to Reporting).  The submission of additional vehicle or fleet information may be required at this time.

     (g)  MERCs for trading between fleets will be banked with the Mobile Source Section of the commission.

     (h)  MERCs for trading between fleets and stationary sources will be banked with the commission Emissions Bank.

     (i)  Upon certification by the executive director, each credit owner will be issued a certificate indicating, where applicable:

          (1)  the standard to which the vehicle is certified;

          (2)  the weight class of the vehicle;

          (3)  the amount of emissions reduced per year in tons for the fleet;

          (4)  the number of years the emission reductions will be credited; and

          (5)  the number of light-duty or heavy-duty vehicle fleet to fleet MERCs.

     (j)  A total emissions credit summary sheet will be issued to the affected entity upon issuance of any MERC certificate.

     (k)  MERCs issued under this section will be awarded in two-year increments for the period of 1998 through 2002.  After 2002, MERCs will be awarded according to the expected remaining useful life of the vehicle.

     (l)  The following are considered violations of the Texas MERC Program:

          (1)  claiming a MERC without meeting the appropriate acquisition requirements;

          (2)  submission of false data as information requested by commission rules; or

          (3)  counterfeiting or dealing commercially in counterfeit MERC certificates.

     (m)  Any person found to be in violation of the Texas MERC Program is subject to penalties and enforcement as defined by the Health and Safety Code, Chapter 382, Subchapter D.

******** end tx 114.201 adopted by TNRCC July 29, 1998 ******eb49*****b3t**

§114.202.  Texas Mobile Emission Reduction Credit Fund.
As adopted by TNRCC July 29, 1998, effective August 20, 1998

(Approved by EPA February 7, 2001 (66 FR 09203), effective April 9, 2001)

     (a)  Mobile emission reduction credits may be assigned through the Texas Mobile Emission Reduction Credit Fund as established by this section to entities affected by §114.150 and §114.151 of this title (relating to Requirements for Mass Transit Authorities, and Requirements for Local Governments and Private Persons) provided:

          (1)  the entity enters into a binding contract with the commission, agreeing to purchase and place in service in designated program areas low emission vehicles in accordance with the number of credits issued and the time frame specified by the commission; and

          (2)  the entity agrees to name the EPA as a third-party beneficiary of its contract with the commission.

     (b)  Contracts entered into under this section may be enforced in the courts of the State of Texas by an order of specific performance.

******** end tx 114.202 adopted by TNRCC July 29, 1998 ******eb49*****b3t**
************* end tx reg 4 subchapter f division 1 *****eb49*****b3t**