30 Tex. Admin. Code § 101.393 - General Provisions
(a) An allowance
may be used only for the purposes described in this division and only for an
affected facility. An allowance may not be used for any purpose that is not
described in this division or to meet or exceed the limitations authorized
under Chapter 116, Subchapter B of this title (relating to New Source Review
Permits), or any other applicable local, state, or federal
requirement.
(b) No later than
March 1 after each control period, the quantity of allowances in a site's
compliance account must be equal to or greater than the total highly reactive
volatile organic compound (HRVOC) emissions from each affected facility at the
site during the control period.
(c)
An allowance may not be used to satisfy netting requirements under Chapter 116,
Subchapter B, Divisions 5 and 6 of this title (relating to Nonattainment Review
Permits; and Prevention of Significant Deterioration Review).
(d) An allowance may be used to offset
volatile organic compound (VOC) emissions from an affected facility if such use
is authorized in a nonattainment new source review (NNSR) permit issued under
Chapter 116, Subchapter B of this title with the following conditions.
(1) The owner or operator shall use a
permanent allowance allocation stream equal to the amount specified in the NNSR
permit to offset VOC emissions from an affected facility. A vintage allowance
or an allowance allocated based on permit allowable emissions, as described
under §
101.394 of this title (relating to
Allocation of Allowances), cannot be used as an offset. An allowance used for
offsets may not be banked, traded, or used for any other purpose except as
allowed in §
101.396(e) of
this title (relating to Allowance Deductions).
(2) At least 30 days before the start of
operation of an affected facility using allowances as offsets, the owner or
operator shall submit an Application to Use Allowances for Offsets (Form
HECT-O).
(A) Except as provided in paragraph
(3) of this subsection, the executive director shall permanently set aside in
the site's compliance account an allowance used for the one-to-one portion of
the offset ratio. If an allowance set aside for offsets devalues in accordance
with §
101.394(a)(1) or
(f) of this title, the owner or operator
shall submit a Form HECT-O at least 30 days before the shortfall to revise the
amount of allowances set aside for offsets. At the end of each control period,
the executive director shall deduct from the site's compliance account all
allowances set aside as offsets.
(B) The executive director shall permanently
retain an allowance used for the environmental contribution portion of the
offset ratio. An allowance used for this purpose cannot be used for compliance
with this division or devalued due to future regulatory changes except as
required in §
101.394(a)(1) of
this title.
(3) The
owner or operator may submit a request to the executive director to release an
allowance used for offsets. If approved, the executive director will release
the allowances for use in the control period following the date that the
request is submitted. Allowances will not be released retroactively for any
previous control periods. A request may be submitted if the owner or operator:
(A) receives authorization in the NNSR permit
for the affected facility to use an alternative means of compliance for any
portion of the VOC offset requirement equivalent to the amount of allowances
the owner or operator requests to have released for the affected facility;
or
(B) permanently shuts down the
affected facility, except that an allowance used for the environmental
contribution portion of the offset ratio does not qualify for release under
this paragraph.
(e) An allowance does not constitute a
security or a property right.
(f)
An allowance will be allocated, traded, and used in tenths of tons. The number
of allowances will be rounded up to the nearest tenth of a ton when determining
allowances used.
(g) The owner or
operator shall use one compliance account for all affected facilities located
at the same site and are under common ownership or control.
(h) The executive director shall maintain a
registry of the allowances in each compliance account and broker account. The
registry will not contain proprietary information.
(i) The owner or operator of an affected
facility may certify reductions from an affected facility as VOC emission
reduction credits (ERCs), provided that:
(1)
an enforceable and permanent reduction of annual allowances is approved by the
executive director at a ratio of 1.0 ton of allowances per year for each 1.0
ton per year of ERCs generated; and
(2) all applicable requirements of Division 1
of this subchapter (relating to Emission Reduction Credit Program) are met.
(j) If there is a
change in ownership of a site subject to this division, the new owner of the
site is responsible for complying with the requirements of this division
beginning with the control period during which the site was purchased. The new
owner shall contact the executive director to request a compliance account for
the site. The new owner must acquire allowances in accordance with §
101.399 of this title (relating to
Allowance Banking and Trading).
Notes
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