Ariz. Admin. Code § R18-2-1208 - Transfer, Use, and Retirement of Emission Reduction Credits

A. Transfer Procedures.

1. An account holder may transfer certified credits held in its account to any other account holder by filing the form prescribed by the Department.

2. On verification of the information in the transfer form, the Department shall adjust the emissions bank accounts of the transferor and transferee to reflect the transfer.

B. Use Procedures.

1. An account holder who intends to use credits held in its account as offsets shall file an application to use the credits on the form prescribed by the Department. The notice shall include:

a. Information on the identity, location, ownership, and emissions of the stationary source;

b. Specification of the amount of credits to be used;

c. Identification of the permitting authority with jurisdiction over the stationary source;

d. If the stationary source is seeking a permit revision, the identification number for the permit being revised.

2. On approval of the application, the Department shall:

a. Issue a certificate representing the credits that may be included in the permit or permit revision application of the stationary source;

b. Notify the permitting authority of the issuance of the certificate; and

c. Change the status of the credits to use approved.

3. The permitting authority shall provide notice to the Department of final action on the stationary source's application for a permit or permit revision.

4. Reductions in qualifying emissions reflected in the credits must be implemented before actual construction of the new stationary source or modification begins.

5. The Department shall register a withdrawal and use of credits used under subsection (B) on the later of:

a. Receipt of notice of approval of the application for a permit or permit revision for the stationary source; or

b. Implementation of the reductions reflected in the credits.

C. Retirement.

1. An account holder may retire credits in its account without using them as offsets by submitting the form prescribed by the Department.

2. On verification of the information contained in the form, the Department shall register a withdrawal and retirement of the credits from the account.

D. Continuation of Credits. Except to the extent otherwise required by the act, certified credits do not expire and continue in effect until withdrawn under subsection (B) or (C).

Notes

Ariz. Admin. Code § R18-2-1208

New Section made by final rulemaking at 8 A.A.R. 1815, effective March 18, 2002 (Supp. 02-1). Amended by final rulemaking at 25 A.A.R. 1433, effective 7/28/2019.