Texas SIP: 30 TAC 117.570. Trading; SIP effective 2000.04.03
Regulatory Text:
§117.570. Trading.
(Approved by EPA 03/03/2000 (65 FR 11468) effective 04/03/2000.)
(a) An owner or operator may reduce the amount of emission reductions otherwise required by §117.105 or §117.205 of this title (relating to Emission Specifications), §117.107 of this title (relating to Alternative System-Wide Emission Specifications), §117.207 of this title (relating to Alternative Plant-Wide Emission Specifications), or §117.223 of this title (relating to Source Cap) by obtaining an emission reduction credit which is established in accordance with this section.
(b) The following requirements must be met in order for a particular unit to be eligible to use this section:
(1) The unit or source creating the reduction credit (RC) must be located in the same federally designated ozone nonattainment area as the unit subject to the requirements of this section;
(2) RCs must be generated from a stationary source or sources; and
(3) The emission reduction which is the basis for establishment of the RC must have occurred after November 15, 1990.
(c) Reduction credits shall be generated as follows:
(1) For sources not subject to the emission specifications of §117.105 or §117.205 of this title, creditable RCs shall be established in accordance with the following requirements:
(A) RCs shall be calculated in accordance with the establishment of stationary source emission reduction credits (ERCs) under §101.29(f) of this title (relating to Emissions Banking); and
(B) The source shall use emissions test data to establish the actual emissions baseline in accordance with the testing requirements of §117.209(b) of this title (relating to Initial Control Plan Procedures), or §117.111 or §117.211 of this title (relating to Initial Demonstration of Compliance), as applicable. The actual emissions baseline is defined as the actual annual emissions, in tons per year, from a source determined by use of data representative of actual operations in 1990 or later, assuming full compliance with all applicable state and federal rules and regulations. If the source creating the RC has been shut down or irreversibly changed, the source shall use the best available data and good engineering practice to establish the actual emissions baseline.
(2) For sources subject to the emission specifications of §117.105 or §117.205 of this title, creditable RCs shall be calculated using the following equation:
RCs (tons per year)
= Sum from j = 1 to N of {Hj × (RAj × RBj)× (365/2000)}
Where:
j = each emission unit subject to this section generating RCs
N = the total number of emission units subject to this section generating RCs
Hj = actual daily heat input, in million British thermal units (MMBtu) per day, as calculated according to §117.223(b)(1) of this title
RAj = the lowest of any applicable federally enforceable emission limitation, the reasonably available control technology (RACT) limit of §117.105 or §117.205(b)-(d) of this title, or the actual emission rate as of June 9, 1993, in pound (lb)/MMBtu, that apply to emission unit j in the absence of trading. For units that have been shut down prior to June 9, 1993, the actual emission rate shall be considered to be the average annual emission rate occurring over the period used to define the unit's baseline heat input period in §117.223(g)(3) of this title.
RBj = The enforceable emission rate, in lb/MMBtu, for unit j established in the registration under subsection (g) of this section.
(3) RCs from shutdown units may be generated only by units participating in a source cap in accordance with §117.223 of this title.
(d) Reduction credits shall be used as follows:
(1) An owner or operator complying with §117.223 of this title may reduce the amount of emission reductions otherwise required by complying with both of the following equations instead of the equations in §117.223(b)(1) and (2) of this title.
New 30-day rolling average emission limit (lb/day)
= Sum from i = 1 to N of {(Hi × Ri ) + (RCi × (2000/365)}
Where:
Ri, in lb/MMBtu, is defined as in §117.223(b)(1) of this title
i = each emission unit in the source cap
N = the total number of emission units in the source cap
Hi = actual daily heat input, in MMBtu per day, as calculated according to §117.223(b)(1) of this title
RCi = RC used for each unit, in tons per year, generated in accordance with subsection (c) of this section. If RCi is from a unit not subject to the emission specifications of §117.105 or §117.205 of this title, this term becomes Rci/F, where F is the offset ratio for the ozone nonattainment area where the unit is located (e.g. 1.2 for Beaumont/Port Arthur and 1.3 for Houston/Galveston).
and
New maximum daily emission limit (lb/day)
= Sum from j=1 to N of {(Hmi × Ri) + (RCi × (2000/365)}
Where:
i and N are defined as in the first equation in this paragraph
Ri, in lb/MMBtu, is defined as in §117.223(b)(1) of this title
Hmi = the maximum daily heat input, in MMBtu/day, as defined in §117.223(b)(2) of this title.
(2) An owner or operator complying with §117.105, §117.107, §117.205, or §117.207 of this title may reduce the amount of emission reduction otherwise required by those sections for a unit or units at a major source by complying with individual unit emission limits calculated from the following equation:
New emission limit for unit i (lb/MMBtu)
= RAi + ((RCi / Hmi) × (2000/365))
Where:
i = each emission unit subject to this section
N = the total number of emission units subject to this section
RAi = the lowest of any applicable federally enforceable emission limitation, the RACT limit of §117.105 or §117.205(b)-(d) of this title, or the actual emission rate as of June 9, 1993, in lb/MMBtu, that apply to emission unit i in the absence of trading. For units that have been shut down prior to June 9, 1993, the actual emission rate shall be considered to be the average annual emission rate occurring over the period used to define the unit's baseline heat input period in §117.223(g)(3) of this title.
and
Hmi and RCi are defined as in paragraph (1) of this subsection.
The appropriate compliance averaging period specified in §117.105, §117.107, §117.205, or §117.207 of this title shall be assigned to unit i using a RC in accordance with the provisions of this paragraph.
(3) RCs from shutdown units may be used only by units participating in a source cap in accordance with §117.223 of this title.
(e) RCs may be freely transferred in whole or in part and may be sold or conveyed in any manner in accordance with the laws of the State of Texas. The RC may be sold outright or leased for some time period agreed to by the parties subject to subsection (g) of this section, but not less than six months. Any owner or operator shall document the use of a leased RC in the final control plan in accordance with §117.115 or §117.215 of this title (relating to Final Control Plan Procedures), or in the revised final control plan in accordance with §117.117 or §117.217 of this title (relating to Revision of Final Control Plan), identifying the lessee and lessor, the amount of RCs leased, and the conditions of the lease. Approved RCs must be acquired by a source prior to their utilization under subsection (d) of this section.
(f) Any lower NOx emission specification established by rule or permit for the unit or units generating the RC shall require the user of the RC to obtain an approved new reduction credit or otherwise reduce emissions prior to the effective date of such rule or permit change. For units using a RC in accordance with this section which are subject to new, more stringent rule or permit limitations, the owner or operator using the RC shall submit a revised final control plan to the Executive Director of the TNRCC in accordance with §117.117 or §117.217 of this title (relating to Revision of Final Control Plan) to revise the basis for compliance with the emission specifications of this chapter. The owner or operator using the RC shall submit the revised final control plan as soon as practicable, but no later than 90 days prior to the effective date of the new, more stringent rule or permit limitations. In addition, the owner or operator of a unit generating the RC shall submit a revised registration application to the Executive Director, in accordance with subsection (g)(1) of this section, within 90 days prior to the effective date of any new, more stringent rule or permit limitations affecting that unit. If a more stringent NOx emission specification is established by rule or permit for the unit or units generating the RC, the value of the RC shall be recalculated as follows:
Recalculated RC (tons per year)
= Sum from j = 1 to N of {(Hj × (RBj - Raj—new) × (365/2000))}
Where:
j, N, Hj and RBj are defined as in subsection (c)(2) of this section
Raj—new = the new NOx emission specification for unit j, in lb/MMBtu
If the recalculated RC is of zero or negative value, the RC is determined to be of zero value.
(g) The RC program established by this section shall be administered as follows:
(1) The owner or operator of a source seeking to create or revise a RC shall submit a registration application to the Executive Director using the RC registration form approved by the Executive Director. The Executive Director shall annotate the RC registration application with the date of receipt. The RC registration shall include information sufficient to calculate the RC value under subsection (c) of this section. The Executive Director shall perform an engineering evaluation of the claimed credit and may adjust the value of the RC on the basis of this evaluation. The application must clearly state the enforceable limits for each unit generating a credit. For emission units subject to the emission specifications of this chapter, which generate RCs, and for which the owner or operator elects to comply with the individual emission specifications of §117.105, §117.107, §117.205, or §117.207 of this chapter, the enforceable emission limit RBj shall be calculated using the maximum rated capacity. For emission units subject to the emission specifications of this chapter, which generate RCs, and for which the owner or operator elects to achieve compliance using §117.223 of this title, the enforceable emission limit RBj shall be substituted for Ri in the source cap allowable mass emission rate equations of §117.223(b)(1) and (2) of this title and those allowable rates shall be the enforceable limits for those sources.
(2) Registration applications must be received at least 90 days prior to the planned utilization of the RC. RCs may be utilized only after the Executive Director grants approval of the registration application.
(3) The Executive Director shall have 30 days from date of receipt to determine if the registration application is complete.
(4) The Executive Director shall have 90 days from date of receipt to approve, modify, or deny the registration or 60 days after determination of completeness, whichever is later.
(5) The Executive Director may revoke approval of a registration under this section at any time upon a determination that the requirements of this section are not being met, and may require submittal of a revised control plan for the generator or user of a RC upon such a finding. The owner or operator shall submit a revised control plan to the Executive Director as soon as practicable, but no later than 90 days after the date of the Executive Director's notification that approval of a registration has been revoked.
(6) Denial or modification of a registration by the Executive Director may be appealed according to the provisions of §101.29(l)(2) of this title.
(7) The owner or operator desiring to utilize the RC in accordance with subsection (d) of this section shall document this in the initial control plan submitted in accordance with §117.109 or §117.209 of this title (relating to Initial Control Plan Procedures). The change of a control plan to include a RC after April 1, 1994 shall require a revision to the initial control plan and resubmission of the plan for approval as soon as practicable. RCs may be utilized only after the Executive Director grants approval of the revised initial control plan.
(8) The owner or operator desiring to utilize the RC in accordance with subsection (d) of this section shall document this in the final control plan submitted in accordance with §117.115 or §117.215 of this title (relating to Final Control Plan Procedures). The new emission limit for each unit as calculated in subsection (d) of this section shall be clearly listed and will be considered federally enforceable. RCs may be utilized only after the Executive Director grants approval of the final control plan.
(9) After submission of the final control plan in accordance with §117.115 or §117.215 of this title, an owner or operator who wishes to transfer an RC to revise the basis for compliance with the emission specifications of this chapter shall submit a revised final control plan to the Executive Director in accordance with §117.117 or §117.217 of this title. The owner or operator shall not vary from the representations made in the final control plan without prior approval from the Executive Director.
As adopted by TNRCC 07/27/94 effective 08/23/94
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