Ohio Admin. Code 3745-111-03 - ERC generation for the purpose of enabling the acquisition of offsets
[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
the "Referenced materials" paragraph
at the
end 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 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(s)
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 permitted, provided the emission
reduction meets the requirements of this chapter.
(6) Acceptable mobile source ERC generation
that reduces actual emissions shall be approved by the director on a
case-by-case basis.
(7) Any such
other emission reduction technique, that reduces actual emissions, 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 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 expressed in tons of pollutant emitted per year.
(1) In establishing the baseline used to
calculate ERCs, the Ohio EPA shall 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 not 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 not
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(s)
source or facility.
(ii) The initial intended use of the ERCs.
[Comment: identifying an intended use(s)
use(s)
(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 paragraph
(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(s)
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 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 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 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; or
.
(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; and
.
(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(s)
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 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 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
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
Promulgated Under: 119.03
Statutory Authority: 3704.03(F)
Rule Amplifies: 3704.03(A), 3704.03(F)
Prior Effective Dates: 1/8/09
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