Texas SIP: 30 TAC 117.570. Trading; SIP effective 2000.10.31
Regulatory Text:
§117.570. Trading.
(As approved by EPA September 1, 2000 (65 FR 53172) effective October 31, 2000)
(a) An owner or operator may reduce the amount of emission reductions 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 (ERC), mobile emission reduction credit (MERC), discrete emission reduction credit (DERC), or mobile discrete emission reduction credit (MDERC) established in accordance with this section and §101.29 of this title (relating to Emission Credit Banking and Trading). Any ERCs or DERCs for nitrogen oxides (NOx) generated under the provisions of §101.29 of this title used for the purposes of this chapter become subject to the limitations and provisions of this section. For the purposes of this section, the term "RC" refers to an ERC, MERC, DERC, or MDERC whichever is applicable.
(b) Reduction credits (RCs) 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 used to meet compliance with those sections shall be established in accordance with the following requirements:
(A) 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.
(B) 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 equations:
ERCs (tons per year)
= Sum from j = 1 to N of {Hj × (RAj × RBj)× (365/2000)}
or
DERCs (tons)
= Sum from j = 1 to N of {Hj × (RAj × RBj)× (d /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, or for units that have been shutdown prior to June 9, 1993, as calculated according to §117.223(g)(3) of this title; except that the term may not include one standard deviation of the average daily heat input for the period in either calculation.
RAj = (A) For ERCs:
the lowest of
(i) any applicable federally enforceable emission limitation;
(ii) the reasonably available control technology (RACT) limit of §117.105 or §117.205(b)-(d) of this title; or
(iii) 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, Hj.
(B) For DERCs:
the lower of:
(i) any enforceable emission limitation applicable during the generation period; or
(ii) the baseline emission rate defined in §101.29(a)(7) of this title (relating to Emissions Banking), in lb/MMBtu.
RBj = (A) For ERCs:
the enforceable emission rate, in lb/MMBtu, for unit j established in the registration under subsection (e) of this section;
(B) For DERCs:
the average emission rate, in lb/MMBtu, for unit j during the generation period
d = the number of days in the generation period
(3) RCs from shutdown units may be generated only by units participating in a source cap in accordance with §117.223 of this title.
(4) For units participating in a source cap in accordance with §117.223 of this title, creditable RCs may be generated only under the following conditions:
(A) The source cap allowable must be reduced by the amount of any creditable ERCs claimed for the unit or units, and
(B) the actual historical average of the daily heat input for the unit or units may not include one standard deviation of the actual average daily heat input for the period for which creditable reductions are claimed.
(c) 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 the following equations instead of the equations in §117.223(b)(1) and (2) of this title.
ERCs or MERCs: New 30-day rolling average emission limit (lb/day)
= Sum from i = 1 to N of {(Hi × Ri ) + (RCi × (2000/365)}
or
DERCs or MDERCs: New 30-day rolling average emission limit (lb/day)
= Sum from i = 1 to N of {(Hi × Ri ) + (RCi × (2000/d)}
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 (for ERCs or MERCs) or tons (for DERCs), generated in accordance with subsection (b) 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).
d = the number of days in the use period
and
ERCs or MERCs: New maximum daily emission limit (lb/day)
= Sum from j=1 to N of {(HMi × Ri) + (RCi × (2000/365)}
or
DERCs or MDERCs: New maximum daily emission limit (lb/day)
= Sum from j=1 to N of {(HMi × Ri) + (RCi × (2000/d)}
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.
d = the number of days in the use period
(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:
ERCs or MERCs: New emission limit for unit i (lb/MMBtu)
= RAi + ((RCi / HMi) × (2000/365))
or
DERCs or MDERCs: New emission limit for unit i (lb/MMBtu)
= RAi + ((RCi / HMi) × (2000/d )
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.
d = the number of days in the use period
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.
(d) Any lower NOx emission specification established by rule or permit for the unit or units generating an ERC shall require the user of the ERC 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 an ERC in accordance with this section which are subject to new, more stringent rule or permit limitations, the owner or operator using the ERC shall submit a revised final control plan to the executive director 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 ERC 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 ERC shall submit a revised registration application to the executive director, in accordance with subsection (e)(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 ERC, the value of the ERC shall be recalculated as follows:
ERCs: Recalculated ERC (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 (b)(2) of this section
Raj—new = the new NOx emission specification for unit j, in lb/MMBtu
If the recalculated ERC is of zero or negative value, the ERC is determined to be of zero value.
(e) The RC program established by this section shall be administered as follows:
(1) For emission units subject to the emission specifications of this chapter, which generate ERCs, MERCs, DERCs, or MDERCs 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 title, the enforceable emission limit RBj shall be calculated using the maximum rated capacity.
(2) For emission units subject to the emission specifications of this chapter, which generate ERCs, MERCs, DERCs, or MDERCs, 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 Rj 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.
(f) Stationary source emission reductions which were relied upon in the attainment demonstration modeling inventory for September 10, 1993 may not be used for generating emission reduction credits to comply with the lean-burn engine NOx specification of §117.205(e) of this title. The modified requirements of this subsection are necessary for an owner or operator to use the trading requirements of this section to achieve compliance with the NOx specification of §117.205(e) of this title. The modifications to this section are as follows:
(1) in §117.570(b)(1)(A) of this title, 1993 replaces 1990;
(2) in §117.570(b)(2) of this title, in the definition of RAj, December 31, 1999, replaces June 9, 1993;
(3) in §117.570(c)(2) of this title, in the definition of RAi, December 31, 1999, replaces June 9, 1993; and
(4) in each instance, references to §§117.223(b)(1), 117.223(b)(2), and 117.223(g)(3) of this title are date-modified in accordance with §117.223(k) of this title.
As adopted by TNRCC October 27, 1999, effective November 21, 1999
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