Md. Code Regs. 26.11.17.04 - Creating Emission Reduction Credits (ERCs)
A. An emissions
unit that emits NOx or VOC is eligible to create an ERC
if:
(1) The unit was in operation any time
during calendar year 2002 or later, and emissions from the unit were included
in the current inventory for the State Implementation Plan for the
pollutant;
(2) The Department did
not rely on the emission reduction in issuing a permit under an approved
regulation; and
(3) The Department
has not relied on the emission reduction in demonstrating attainment or
reasonable further progress.
B. An ERC may be created by:
(1) Controlling emissions below the emission
levels required by applicable State and federal requirements and the State
Implementation Plan through a federally enforceable permit limit;
(2) Curtailing operations and reducing
emissions through a federally enforceable permit condition; or
(3) Permanently discontinuing the operation
of one or more emissions units at a source.
C. Quantification and use of ERCs.
(1) ERCs shall be based on a reduction of the
source's actual emissions as that term is defined in Regulation .01 of this
chapter.
(2) The Department shall
credit an emissions unit with emission reductions achieved by shutting down an
existing emissions unit or permanently curtailing production or operating hours
if the reductions are permanent, quantifiable, and federally enforceable. In
addition, the shutdown or curtailment is creditable only if it occurred on or
after January 1, 2003, and if the reduction is not necessary to meet any other
State or federal requirement.
(3)
Creditable emission reductions that qualify as ERCs may be used to satisfy the
requirement to provide offsets under this chapter and shall total at least 5
tons per year of VOC or NOx.
(4) If a new regulation is adopted that
applies to an emissions unit that created ERCs, the ERCs shall be reduced by an
amount equal to the reduction that would have been required before the ERCs
were created.
(5) Emission
reduction credits shall be enforceable by the Department and the EPA and shall
be obtained by the date the new emissions unit commences
construction.
(6) The reduction of
emissions from an emissions unit that provides emission reduction credits shall
occur before the date when the new or modified emissions unit becomes
operational.
D. Location
of ERCs.
(1) Generally, ERCs are acceptable
if obtained from within the same area as the new or modified emissions unit.
The Department may allow the owner or operator to obtain VOC or
NOx emission reductions from other areas if:
(a) The other area has an equal or higher
nonattainment classification than the area in which the emissions unit is
located; and
(b) Emissions of the
particular pollutant from the other area have been demonstrated to contribute
to a violation of the National Ambient Air Quality Standard in the area in
which the new emissions unit is located.
(2) The Department shall give preference to
ERCs from emissions units located as close to the proposed emissions unit site
as possible.
E.
Exclusions and Limitations.
(1) ERCs shall
expire as follows:
(a) For emissions units
discontinuing operation before January 1, 2002, the ERCs expire January 1,
2012; and
(b) For emissions units
discontinuing operation on or after January 1, 2002, the ERCs expire January 1,
2012, or 10 years after the discontinued operation, whichever is
later.
(2) The expiration
dates in §E(1) of this regulation do not apply if the ERCs are committed to a
new or modified emissions unit through a permit to construct that has an
enforceable contract to transfer the ERCs to the owner or operator of a new or
modified emissions unit.
(3) An ERC
may not be used to meet BACT, LAER, NSPS, RACT, allowance based programs, or
any other emission limitation under the Clean Air Act.
Notes
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