[Comment: For dates of non-regulatory government publications,
publications of recognized organizations and associations, federal rules, and
federal statutory provisions referenced in this rule, see paragraph (K) of rule
3745-111-01 of the
Administrative Code.]
(A) Acceptable
emission reduction techniques.
When voluntarily participating in the ERC banking program, ERCs
shall be
are
generated by the following emission reduction techniques:
(1) Permanent shutdown of one or more
existing air contaminant sources or a facility.
(2) Permanent curtailment in production or
operating hours at an existing air contaminant source or facility operating in
accordance with applicable laws, provided the curtailment results in an actual
emissions reduction and is not otherwise required to comply with the Clean Air
Act.
(3) The installation and
operation of pollution control equipment that reduces emissions below the level
required from an existing air contaminant source or facility to less than that
required by applicable laws.
(4)
Technologies, materials or processes or process equipment modifications which
are not otherwise required by the Clean Air Act.
(5) The incidental emissions reduction of air
pollutants contained in paragraph (B)(1) of rule
3745-111-02 of the
Administrative Code resulting from reductions of a collateral
pollutant
required under the Clean Air
Act shall
be
are permitted, provided the emission
reduction meets the requirements of
this chapter.
(6) Acceptable mobile source ERC generation
that reduces actual emissions shall
may be approved by the director on a case-by-case
basis.
(7) Any such other emission
reduction technique, that reduces actual emissions, may
be approved by the director on a case-by-case basis.
(B) ERC baseline determination.
The emission baseline from which ERCs may be generated
shall be
is
established to determine the amount of actual emissions from an air contaminant
source, process, or process equipment for the purpose of generating ERCs that
result in actual emission reductions. The emission baseline
shall be
is
expressed in tons of pollutant emitted per year.
(1) In establishing the baseline used to
calculate ERCs, the
Ohio EPA shall
may consider emission characteristics and operating
conditions which include, at a minimum, the emission rate, capacity
utilization, hours of operations and seasonal emission rate variations, in
accordance with the following:
(a) The
definition of actual emissions contained in rule
3745-31-01 of the Administrative
Code.
(b) The baseline emissions
rate may
is
not to be inconsistent with the emissions
reported in the most recently filed or amended version of all relevant emission
statements for the baseline period filed pursuant to Chapter 3745-78 of the
Administrative Code for which fees have been paid, when applicable.
(c) The baseline emissions rate
shall
is not
to be exceed the allowable emissions rate taking
into consideration the definition under paragraph (G) of rule
3745-111-01 of the
Administrative Code.
(2)
The baseline determination requirements under rule
3745-31-24 of the Administrative
Code
shall apply.
(C) ERC initial quantification.
(1) When participating in the
ERC banking
program, emission monitoring and quantification protocols to quantify
emissions, emission reductions, and the generation of ERCs shall be reliable,
enforceable, and replicable and may include the following:
(a) Continuous emission monitoring, stack
testing, sampling of fuels and materials, or other direct
measurements.
(b) Calculations
using equations that are a function of process and control equipment.
(c) Mass-balance calculations.
(d) Emission factors, emission calculation
methods, or emission quantification protocols approved for use at the time of
emission reduction generation by the Ohio EPA.
(e) For facilities in which emission rates
vary over time, an Ohio EPA approved alternative method for quantifying the
reduction and ensuring the continued emissions reduction, if the method is
approved by the director.
(f)
Measurement methods, procedures, and calculations shall be approved by the
director.
(D)
ERC generation notification.
(1) When
participating in the
ERC banking program, an
ERC generation notification shall
be submitted in a form and manner prescribed by the
director and
shall include the following information, at
a minimum:
(a) Verified ERC generation.
(i) The name of the owner and operator of the
air contaminant source or facility.
(ii) The initial intended use of the ERCs.
[Comment: identifying an intended use does not obligate the
generator to that identified use and does not prohibit
exclude the
generator from requesting a change to the identified use while the ERCs are in
the bank The intended use information will provide information to the public
regarding which ERCs are available for transfer.]
(iii) The intended or actual date of
initiation of emission reductions.
(iv) Identification of the type of pollutant
and quantity of ERCs being generated.
(v) A description of the emission reduction
techniques used to generate the ERCs.
(vi) Full characterization of the emission
reductions in accordance with this chapter.
(b) Un-verified ERC generation.
(i) Information consistent with paragraphs
(D)(1)(a)(i) to (D)(1)(a)(v) of this rule.
(ii) An estimation of the emission reductions
and the basis of the estimation.
(c) Except for paragraph (E)(2) of this rule,
un-verified ERCs may be submitted via an ERC generation notification for
participation in the ERC banking program only by the facility that actually
generated the emission reductions, the current owner or operator, or a
successor owner or operator.
(E) Shutdown notification and potential
forfeiture of ERCs.
(1) Regardless of any
owner or operator choosing to participate in the voluntary banking program, for
each air contaminant source or facility
permanent shutdown that may result in
ERCs, the
director may provide a notification through certified mail that
requests the owner or operator of the facility to inform
Ohio EPA if the owner
or operator will participate in the
ERC banking program. The owner or operator
may submit a response, through certified mail, electronic mail or fax, with one
of the following:
(a) The owner or operator
may inform
Ohio EPA that they request to retain possession of the ERCs and
intend to do one of the following:
(i)
Participate in the banking program which shall
include
includes a submittal of
information required under paragraph (D)(1)(a) of this rule for approval of
verified ERCs.
(ii) Participate in
the ERC banking program which shall
include
includes a submittal of
information required under paragraph (D)(1)(b) of this rule for approval of
un-verified ERCs.
(iii) Participate
in the ERC banking program at a future date or not participate in the ERC
banking program.
(b) The
owner or operator may inform Ohio EPA that they request the director to obtain
possession of the ERCs to use at the director's discretion.
(2) Any owner or operator who does
not respond to the above shutdown notification
shall
subject
subjects the ERCs to paragraph
(E)(2)(d) of this rule provided the conditions of paragraphs (E)(2)(a) to
(E)(2)(c) of this rule are met.
(a) The
facility has permanently shutdown and either of the following:
(i) The owner or operator of the facility is
undergoing court-supervised liquidation, has had its articles of incorporation
or its license to conduct business in Ohio revoked.
(ii) The owner of operator of the facility
has otherwise taken formal steps to discontinue conducting business in
Ohio.
(b) The owner,
operator or legal representative responsible for the assets of the facility was
provided the notification pursuant to paragraph (E)(1) of this rule but did not
provide a response.
(c) The
director made every effort to contact the owner, operator or legal
representative, including public notice in a prominent newspaper in the area of
the permanently shutdown air contaminant source or facility.
(d) The facility shall forfeit possession of
the ERCs to Ohio EPA, upon the date the permanent shutdown is certified with,
or verified by Ohio EPA for use at the director's discretion. Forfeited ERCs
shall be
are
made available free of charge by Ohio EPA to a stationary source, at the
director's discretion, for use as emission offsets provided the use of ERCs
meet the requirements of Chapter 3745-31 of the Administrative Code and this
chapter. In the event the new or modified stationary source is not installed,
the ERCs shall be
are forfeited back to Ohio EPA.
(F) Any mobile source or
stationary source generating an ERC may be verified by Ohio EPA through
compliance monitoring and reporting programs.
Notes
Ohio Admin. Code
3745-111-03
Effective:
1/23/2025
Five Year Review (FYR) Dates:
10/10/2024 and
01/23/2030
Promulgated
Under: 119.03
Statutory
Authority: 3704.03(F)
Rule Amplifies:
3704.03(A),
3704.03(F)
Prior Effective Dates: 01/08/2009,
06/25/2015