A.
A permitting authority may certify an emission credit if the
permitting authority verifies the credit is based on:
1.
A reduction in actual emissions that occurred after
August 17, 1999;
2.
A quantifiable reduction in actual
emissions;
3.
A permanent reduction in actual
emissions;
4.
An enforceable reduction in actual emissions;
and
5.
A surplus reduction in actual emissions occurring in
addition to any other required emission reduction.
B.
The source must notify the permitting authority when the
reduction occurs.
C.
In order for an emission reduction to be quantifiable under
this Section:
1.
The emission reduction must be quantifiable under
R18-2-301(17) ; and
2.
The reducing source shall submit documentation of
any testing or monitoring that demonstrates an emission
reduction.
D.
The permitting authority shall certify one emission
reduction credit for each ton per year of particulate matter, sulfur dioxide,
carbon monoxide, nitrogen dioxide, or volatile organic compound actually
reduced.
E.
A banked credit does not expire.
F.
The permitting authority shall notify the source and the
Director that a credit is certified. Upon receipt of the notice, the Director
shall issue a certificate for each certified credit to the applicant identified
in R18-2-1204, and list the certified credit in the registry.
A. Application. The owner or operator of a
plan generator may apply for credits for reductions in qualifying emissions by
filing an application with the certification authority. The application shall
be filed on the form prescribed by the Department and shall include:
1. The emissions bank account number obtained
under
R18-2-1206 for the owner or
operator;
2. Information on the
identity, type, ownership, and location of the plan generator;
3. An emission reduction plan satisfying
subsection (B); and
4. A signed
statement by a responsible official, as defined in
R18-2-301, verifying the
truthfulness and accuracy of all information provided in the
application.
B. Emission
Reduction Plan Contents. An emission reduction plan for a program to reduce
qualifying emissions at a plan generator shall include the following elements:
1. A clearly defined purpose and
goal;
2. A clearly defined scope
that identifies affected activities and assures that the program will not
interfere with any other applicable requirements;
3. The composition of any fleet of mobile
sources that will participate in the program;
4. A calculation of baseline
emissions;
5. A calculation of
projected emissions after implementation of the program;
6. Methods for accounting for uncertainty in
the projection of program results;
7. Reliable, replicable procedures for
quantifying emissions or emission-related parameters, as appropriate;
8. Monitoring, recordkeeping, and reporting
requirements that are consistent with the specified quantification procedures
and allow for compliance certification and enforcement;
9. An implementation schedule, administrative
system, and enforcement provisions adequate for ensuring enforceability of the
program; and
10. Such other
elements as the Department may reasonably require in order to assure that
reductions in qualifying emissions are permanent, quantifiable, surplus,
enforceable, and real.
C. Proposed Action and Public Process.
1. The certification authority shall publish
notice of the proposed action on an application submitted under this Section in
the manner prescribed by A.R.S. §
49-444 and as follows:
a. On the website for the certification
authority; and
b. By mail or email
to persons on a mailing list who have requested notice of applications under
this Section.
2. By no
later than the date public notice is published under subsection (C)(1), the
certification authority shall make a copy of the following materials available
at a public location in the same county as the proposed program to reduce
qualifying emissions, at the closest office of the certification authority, and
on the certification authority's website:
a.
The application, including the emission reduction plan;
b. The proposed action;
c. The certification authority's analysis in
support of the proposed action; and
d. All other materials in the certification
authority's possession that are relevant to the proposed action.
3. The certification authority
shall accept public comment on the proposed action for at least 30 days after
the first publication of the notice under subsection (C)(1).
4. The certification authority shall hold a
public hearing no sooner than 30 days after the first publication of the notice
under subsection (C)(1).
5. The
notice shall include the following:
a. The
identity and location of the applicant;
b. A concise description of the program for
reducing qualifying emissions;
c.
The locations at which materials relating to the proposed action are available
under subsection (C)(2);
d. The
date by and manner in which written comments on the proposed action may be
submitted; and
e. The location,
date, and time for the hearing under subsection (C)(4).
D. Action on Application.
1. The certification authority shall deny the
application for certification if none of the reductions in emissions qualifies
as permanent, quantifiable, surplus, enforceable, and real.
2. The certification authority shall grant
the application and issue one conditional credit for each ton per year of
reductions that qualifies as permanent, quantifiable, surplus, enforceable, and
real.
E. Approval by
Administrator.
1. On grant of an application
under subsection (D)(2) by a certification authority other than the Department,
the certification authority shall transmit the conditional credits and the
associated emission reduction plan to the Department for submission to the
Administrator under subsection (E)(2). In addition to the credits and plan, the
submission shall include all of the elements required for a revision to the
state implementation plan under 40 CFR
51.
2. On issuance of conditional credits by the
Department under subsection (D)(2) or receipt of conditional credits under
subsection (E)(1), the Department shall submit the conditional credits and the
associated emission reduction plan to the Administrator for approval as a
revision to the state implementation plan.
3. On final action by the Administrator on
the state implementation plan revision submitted under subsection (E)(2), the
certification authority shall issue certified credits and revoke conditional
credits as necessary to be consistent with the Administrator's
action.
F. Enforcement.
A violation of any provision of an emission reduction plan approved by the
Administrator under subsection (E) is a violation of this rule by the owner or
operator of the plan generator.
