CLARK COUN7Y

AIR QUALI7Y REGULATIONS

SECTION 58 - EMISSION REDUCTION CREDITS

TABLE OF CONTENTS

Subsection Subsection Title Page

581 Introducbon 2

58.1.1 Puroose

58.1.2 General ERC Provisions 2

582 Creafino Section 58 ERCs 2

58.2.1 General Eligibiritv and Aocroval Criteria for Section 58 ERCe 2

58.2.2 Calculation of Section 58 ERCs 3

58.2.3 Candidate methods available for EMissioNs reductions

58.3 SectIOn58ERCBANKING

58.3.1 Section 58 ERC Registry (B IqpiG end Trackina System 5

58.32 Procedures for Processing a Section 58 ERC Avpllcatlon 6

58.4 Notice of Prooosed Action arid Public Hearing Procedures .8

58.4.1 Notice of Prooosed Action 8

584.2 Public Hearing Procedures

58.5 Appeals to the Hearina Board 9

58.6 Section 58 ERC Restrictions and Umitations 9

58.6.1 ERC Bankino Restrictions and Limitations

58.6.2 ERC Use Rétiictions end Limitabo 10

58.6.3 Procedure for Use of Section 58 ERCs 10

58.6.4 Moratorium on Use of Banked Section 58 ERCs It

Amended 58-1

CC Air Quality Regulations

I
O/13/O3

SECTION 58- EMISSION REDUCTiON CREDITS

58.1 Intrnrh .r4iewi

EMISSION reductions shall be consistent with the definition of an ERC in Section

O and shall be in accordance with the revised AUThoRITY TO CONSTRUCT!

OPERATING PERMIT issued pursuant to Section 12. Such revised AUThORITi’ TO

CONSTRUCT/OPERATING PERMIT shall contain conditions related to the EMISSION

reductions which include, but gre not limited to. the following:

(a) hours of oøeration.

Amended

(b) production rate or input rate.

58-2

58.1.1 Purpose: The purpose of this Regulation is to establish procedures for the creation.

banking, and use of Federal EMissioN REDUCTION CREDITS (ERCs).

58.1.2 General ERC Provisions:

58.1.2.1 The CONTROL OFFICER may allow the issuance. tradlnä. use. reciernction. and!or

BANKING of eligible EMISSION REDUCTION CREDITS for Carbon Monoxide (COl.

4jolatile Organic Compounds fVOC. and Oxides of Nitrogen (NO)j

. accordance with the limitations set foh in.this eon.

58.1.2.2 Only EMISSION REDUC’IlON CREDITS that are SURPLUS. FEDERALLY ENFORCEABLE.

PERMANENT, and QUANTIFIABLE as defined in SectIon 0 are elloible for BANKING.

trading, or use pursuantto Air Quality Regulations.

58.2 Creating SectIon 58 ERC

58.2.1 General Eligibility and Approval Criteria for Section 58 ERCa:

58.2.1.1 Eligibility Criteria for Section 58 ERCs

58.2.1.1.1 EmissIon reductions eligible for Section 58 ERCs shel be rited to the following

. Pollutants: CO. PkjJOand VOC.

58.2.1.1.2 EMISSION reductions from a STATIONARY SOURCE are ellaible for Section 58

ERCs. with exceptIon to fugitive emissions. Onh fugitive VOC EMISSION

. reductions from Iiauids are ellaible for SectIon 58 ERCs.

58.2.1.1.3 STATIONARY SOURCES with Existing Actual Emissions exceeding the allowable

EMISSIONS soecitied in the AuThoRrrY TO C0NSTRUc11OPERAT1NG PERMIT are

not eligible to aoolv for Section 58 ERCs,

58.2.1.1.4 EMISSION reductions eligible for Section 58 ERCs shall be based on a full or

partial shutdown of EMISSION UNITS andlor innovative control techrioloav or

process imi:wovements.

58,2.1.2 Approval Criteria for Section 58 ERCs:

58.2.1.2.1

CC Air Quality Regulations
Cc) recordkeepinci or reporting.

enforceable monitoring methods, and

Ce) minimum time period over which the above will be averaged.

58.2.1.2.3 EMissioNs reductions shall be SURPLUS. PERMANENT. QUANTIFIABLE, and

FEDERALLY ENFORCEABLE. Such reductions in EMISSIONS shall be below the

affected sources BASELINE EMISSIONS.

58.2.1.2.4 EMISsIoN reductions shafl be in excess of what is regufred by Air Quality

Regulations or what is recuired by aporicable BACT or LAER fOr the source when the.ERC Aridication is deemed comolete. V

58.2.1.2.5 EMISSION reductions shall be accounted for in any Clark COunty STATE

Imolementation Plan and have not been relied uoon in the Clark County air

aualitv rilanning orocess. V

58.2.1.2.6 The total ACTLIAL EMISSION reductions associated with the Section 58 ERG

Aoolication shall have a net oositive imorovement on air aualltv. based on the

total ACTUAL EMISSIONS orior to the shutdown andlor implementation of the

innovative control technoloav or process Improvements.

58.2.2 Calculation of Section 58 ERCa: V

58.2.2.1 A Section 58 ERC for each REGULATED AIR POLLUTANT shall eaual the net

EMISSIONS reduction calculated by determining the difference between the

amount OF EXIsTiNG AcTu.4L EMissioNs Ies the amount of Emissions After

the STA77ONARYSOURcE Chanae or Emissions After the Shutdown.

58.2.2.1.1 “ExIsting Actual Emissions” shall mean the ACTIML EMISSIONS based on

actual operating conditions for the STATIONARY SOURCE orior to the EMISSION

reductions associated with the Section 58 ERG Acolication. V

58.2.2.1.1.1 Such EMIssiotIS shal be determined by using source tests, continuous emission

monitoring systems (CEMS). or other methods approved by the CoNTRoL

OFFICER. V

58.2.2.1.1.2 Any source test or any other method utihzed to determine EMISSIONS shall be the

resoonsibilitv of the ERG aoobcant For source tests relied upon for the ERC

alication process, the aowllcant sha8 comolv with the following:

(a) The source test protocol must be aooroved oursuant to Section 14 by the

CONTROL OFFICER beforethe source test can be conducted. The

CONTRoL OFFICER shall accomplish the aoaroval deternination within 40

calendar days ofsubrrission ofthe test orotocol:

(b) The source owner or RESPONSIBLE OFFICIAL shall notify the CONTROL

OFFICER, via written corresnondence. at least ten (10) calendar days orior

to conducting any source test and

Amended 58-3

V

CC Air Quality Reaulations

I O/23k3

3
D/23/03

‘11

(ci The source test results must be approved oursuant to Section 14 by the

CONTROl. OFFICER.

58.2.2.1.2 HEmisslons After the STATIONARY SouRcE Chanae’ shall mean the ACTUAL

EMISSIONS, as defined in subsection (ci of the definition of ACTUAL EMISSIONS, for

the STATiONARY SOURCE after the emission reductions associated with the

Section 58 ERC Aoolication have been achieved and upon commencement of

operationsat fijil oermittèd caoecitv

58.2.2.1.2.1 Such EMISSIONS shall be determined by using source tests approved by the

CONTROL. OFFICER. CONTINUOUS EMISSIONS MONITORING SYSTEMS, or cher

methods aoroved by the CONTROL OFflCER

582 21 22 Any source test or any other method utilized to determine EMIssioNs shall be

the responsibility ofthe ERG applicant For scarce test relied uoon forthe ERC

application process. the poDlicant shall como)v with the following

(a) The source test protocol must be approved pursuant to Section 14 by the

CONTROL OFFICER before the source test can be conducted. The

CONTROL OFFICER shaM accomplish the aooroval determination within 40

calendar days of submission ofthe test protocol:

(b) The source owner or RESPONSIBLE OFFICIAL shall notify the CONTROL

OFFICER. via written correspondence. at least ten (101 calendar days orior

to conducting any source test and

(ci The source test results must be soixovedoursuant to Section 14 by the

CONTROl. OFFICER.

58.2.2.1.2.3 After the STATIONARY SOURCE chanae. the EMISSIONS level established from a

source test or other methods shall become a FEDERALLY ENFORCEABLE

EMISSIONS limit in the AuThoRIr,’To CONSTRUCTIOPERATING PERMIT.

58.2.2.2 The determination of ‘Existing Actual Emission? and ‘Emissions After the

STATIONARY SpLcE Change’ shall be based on eauivalent EMISSION factors for

each process that are approved by the CoNTROL OFFICER. Due to the

STATIONARY SOURCE chance, it may not be feasible to anolv the same

EMISSION factor. If this situation ailses. the ore-chance EMISSIONS shall be

the EMISSION factor contained In the previous (Dre-chanoel AUTHORITY TO

CONSTRUCT and/pr OPERATING PERMrT and the post-change EMISSIONS

shall be the EMISSION factor contained in the revised (post-chance)

AUTHORITY TO CONSTRUCT and/or OPERATING PERMIT.

58.2.2.3 ‘Emissions After the Shutdowr? shall mean the ACTUAL EMISSIONS from a • STATIONARY SOURCE aooMno for Section 58 ERC after Permanent cessation of

ooerations of the associated EMISSION UNITS belno Dermanently shutdown.

58.2.3 Candidate methods available for EMISSIONS reductions:

58.2.3.1 STATIONARY SOURCE Shutdowns:

Amended 58-4

CC Air Quality Reciulations
I O/13,k 3

58.2.3.1.1 EMISSION reductions from a permanent shutdown of an EMISSION UMT(S) at a

STATiONARY SOURCE are eliaible for BANKINGllsSuance of Section 58 ERCs.

58.2.3.1.2 A Section 58 ERC apvlication for EMISSION reductions associated with a

permanent shutdown (oartial or fuUl of a STATIONARY SOURCE. shaH be submitted

within one hundred and eiahtv (180) calendar days after oermanent cessation of

operations or within one hundred and eiahtv (180) calendar days onor to

permanent cessation of ooeraticns.

58.2.3.2 Innovative Control Techndoav or Process Imrovemènts:

58.2.3.2.1 Prooosed EMISSION reductions resultino from innovative control techniques or

. process improvements below the EXISTiNG ACTUAL EMISSIONS may be

•.. considred for BANKINGIIssuançe orovideØ the .fdlowina reoUiremçnts are

satisfied:

(a) A revised AumoRrrY TO C0N5TRucTIOPERA11NG PERMrr has been issued

pursuant to Section 12 that contains the STATIONARY SOURCE change and

EMISSION inventoiv adjustments hated in the Section 58 aocation:

(b) The revised AUThoRrrY TO CONSTRUCT! OPERATING PERMIT EMISSIONS

limits shall not exceed the ‘Emissions After the STA170NARY SOURCE

Chanqe’. based on 58.2.2:

(C) All conditions and allowances specified or implied in the omlainal

AUThORITY TO C0NSTRUCr!OPERATING PERMIT shall temninate immediately

uoon issuance of the revised AUTHORrrY TO CONSTRUCT/OPERATiNG

PERMrr: -

58.2.3.2.2 A SectIon 58 ERC aoolication for EMISSION reductions associated with the

. STATIONARY SOURCE chanoe shall be submitted within one hundred and eiøhtv

(180) calendar days of issuance of the revised AUTHORITY TO

CONSTRUCTIOPERATING PERMIT containing the conditions associated with the

STATiONARY çuRCE change.

58.3 Section 58 ERC BANKJNG

58.3.1 Section 58 ERC Registry (BANKINGY and Tracking System:

58.3.1.1 EMISSION reductions shall be quantified according to a common unit of measure

known as an EMISSION REWCT1ON CREDIT. which is eauivalent to one ton.

Such an ERG unit shall be used in transactions established oursuant to this

Section including all BANKING. issuance. trading. sellina. purchasing. trackina.

and redemption activities. ERCs may be issued andlor iransfetred in tenthspf

credits or greater. e.g.. 200 % tons of emission reductions eauates to 200.8

ERCs. The standard rounding rule aoalies. i.e.. 5 or areater round UP and 4 and

below round down.

58.3.1.2 The CONTROL OFFICER shall develop a recister to BANK and track Section 58

ERG transactions.

Amended 58-5

CC Air Quality Requlations
1 O)23:3

58.3.1.2.1 The ERC Registry (BANK) and its use shalt not interfere with the attainment or

maintenance of any local or National Ambient Air Quality Standard (NAAOS) for

any critena air pollutant

58.3.1.2.2 The ERC Registry (BANK) and Its use shall assure that the use of Section 58

EROs do not contravene relevant requirements of the Clean Air Act

Amendments (CAAA) of 1990. including subsequent amendments, and Nevada

Revised Statues (NRS) 445.

58.3.1.3 The ERC Registry (BANK) established b the CONTRoL OFFICER in acconlance

with this Section shall be accessible to the public and shall contain the followina

information:

(a)

a rcord of gU tnsactions .

tb) a secarate record for each Section 58 ERC owner andlor paitv involved In

an ERC transaction.

58.3.1.4 The ERC Reoistrv (BANK) will not contain confidential information. Release of

information related to ERCs will be consistent with 40 CFR. Chaoter I.

Subchapter A. Part 2. Suboarts A and B and the Nevada Revised Statutes.

Chaoters 239 and 60Ch.

58.3.2 Procedures for Processlnct a SectIon 58 ERC Application:

58.3.2.1 Section 58 ERC Anpilcation. The STATIONARY SOURCE owner. RESPONSIBLE

OFFiCIAL or operator shall submit a Section 58 ERC Application for EMJSSION

reductions pursuant to this Section to the CONTROL OFFICER. The apolicant

shall utilize the most current Section 58 Aoohcation form, which must be

obtained from the Decartment of Air Quality Manaoement. Such aoolication

must be signed by the STATIONARY SOURCE owner or RESPONSIBLE OFFICIAl, arid

the aopljcant must oav a non-refundable fee apolicatlon fee of $300.00 at time of

submittal.

58.3.2.2 Preliminary Eligibility Determination Process for a Section 58 Aoolication. The

CONTROL OFFICER shalt make a Drelininarv elioibility determination oursuant to

Subsection 58.2.

58.3.2.3 Completeness Determination Process for a Section 58 ERC Application. The

CoNTRol. OFFiCER shall determine the completeness of an application submittal

within sixty (60) calendar days of receict of such an application, An aoolication

shpU be Øeemed comp ete nhiwh eCoOLOFFIC Pj all necessary information to orocessthe application. At a minimum, the aoolicant thai orovide

all reoufred Information as indicated in the current Section 58 ERC Application form. The CoNTRoL OmcER shall determine whet necessary information is

reaulred to orocess an application. beyond what is stated in the current

application. Based on the results of the completeness determination the

following shai occur:

Amended 58-6

CC Air QualiW Regulations
O/l/Q3

(a) If such application is deemed incomplete. then the CONTRoL OFFICER may

request additional information as necessary to determine epibilitv of such

EMISSION reductions.

(b) If such aoclication is deemed complete. then the CONTROL OFFICER shalt

make a final eligibility determination oursuant to SubSection 582.

58.3.2.4 Section 58 ERC Aoolicafion Approval Process. An application shall be deemed

aooroved only when the CONTROL OFFICER has determined that the avolication

satisfies all federal and local reauirements. Based on the results of the aroval

determination the following shall occur:

(a) If the CONTROL OFFICER issues oirnary aopro on the Section 58.

ERC Spplicatj& ..a Notice of Prooosed Action shall be oublished our uant.

to Subsection 58.4.

(b) After the close of the Notice of Prooosed Action period, the CONTROL

OFFICER shall consider the oublic comments and issue a final decision on

aoproval or çiisaooroval of the Section 58 ERC aDolication. Such decision

shal be issued no later than one hundred eiahtv 1180) calender days after

receiot of a comolete Section 58 ERC application unless an extension is

reauested by the apohcant or if there is an unforeseen circumstance with

the application that prohibits compliance. In the latter case the Control

Officer wiH orovide written notification to the aoncant with rationale and a

orojected resolution date.

Section 58 ERC Issuance Process:

58.3.2.5.1 Within thirty (3D) calendar days after final aooroval of the Section 58 Aolication.

the CoNTROl. OFFICER shall issue a final approval determination to the aoolicant.

The final aooroval determination shall contain, at a minimum:

(a) the aoplicant’s information,

(b) the STA11ONARY SOURCE information.

(c) the quantity of ERCs issued oer specific oollutant.

(dl any conditions that must be satisfied orior to issuance, and

(el the decision to approve or disaoorove the Section 58 Application, in full or

inpart.

58.3.2.5.2 The CONTROL OFFICER shall record the issuance transaction into the ERC

registry (BANK).

58.3.2.5.3 Section 58 ERCs for a specific pollutant within the aooflcable defined JRSHED

REGiON shall be available when the associated oolkstarg snecific STATE

Imnolementation Plen (comoletel for Clark County has been submitted to EPA

• within the time soedfied under the ACT orsubseauentlv aoocoved by EPA.

Amended 58-7

CC Air Quality Requlations

7

c q ¶ ç
I

1 10/ 13ô3

58.4 Notice of Proposed Action and Public Hearing Procedures

58.4.1 Notice of Proposed Action:

58.4.1.1 After recelot of a comolete Sectbl 58 ERG aoplication and issuance of

oreliminarv aporoval, the CONTROL OFFIcER shall oublish in one or more

newspapers of aeneral circulation within Clark County. Nevada. a notice listina

the follo6na items regardina the aoolicant

(a) receipt of Section 58 ERC aookation:

(b) availability of information:

c1 avaliabihtv of review and analvsss of the apolication based on its

compliance with each applicable reiülation

(d) a summary of the required Air Pollution Controls (if aoolicable):

Ce) preliminary determination why the Section 58 ERG acolication should be

aranted:

(1) availability ofg,rorosed rensed Authority to Construct Certificate conditions

(if anolicable):

(a) oooortunitv for any oerson to submit written comments on the EMISSION

reductions for the source. including but not limited to the foflcminci:

(1) the oerformance test orotocol used.

(2) other alternatives avaliable to the STATiONARY SOURCE.

(3) the control technoloav reauirements (i[aplicable).

(4tevjsed -AuThoRitY TO CONSTRUCT/OPERATiNG PERMIT Certificate

conditons (If aoolicabie). arid

(5) other sooroodate considerations:

(h) all written, and oral comments must be submitted to the CONTROL OFFICER

within thirty (30) calendar days from the publication date of the Notice of

Prooosed Action: and

(I) opportunity for any person to recuest a Public Hearing oursuant to

V Subsection 58.4.2.

58.4.2 PublIc Hearing Procedures:

58.4.2.1 Mv PERSON may oetition the CONTROL OFFicER. in writing, for a Public Hearing,

All such oetftions shall contain: the oetitioner’s name, V address. daytime

telephone number and comments related to the items listed ir 58.4.1.1(a).

Amended 584

CC Air Quality ReuIations
1 O/223

Upon reQuest. the CONTROL OFFICER shall hold a Public Heanngno sooner than

thirty (30) calendar days after the date of the Notice of Proposed Action but no

Iar than seventy (70) tInrbr days after the date of the Id’ of Pronosed

Action.

58.4.2.2

58.4.2.3 The oetitioner shall receive no less than seven (7) calendar daYs prior written

notice of the date and location of the Public Heanna.

58.5 Aealsto the Hearina Board

58.5.1 Any Derson. as soecified in 58.5.2, dissatisfied with the eligibility or arovaJ

determination made by the CONTROL OFFICER oursuant to this section. may.

within twenty (20) calendar dave of the CONTROL OFFICER’S decision. tition the .• :Clark County Air Pollutiofl.Coi*ol Hearirla Board. a hearfflãto review the

CONTROL OFFiCER’S decisiori. -

58.5.2 Only those oersons submittina written comments durbia the Notice of Prooosed

Action penod or in the event oral testimony is given durkia the Public Heanna.

those persons orovidinc such testimony shall have the iiaht Pursuant to the V provisions to aaeal the dedsion of the CONTROL OFFICER.

58.5.3 It is incurrtent on the apoellant to disclose. In writing, the Issues to be

considered by the HEARING BOARD at the time the ppoeal is filed. Oniv aooeals

within the scope of air aualitv rules shall be heard by the HEp,RING BOARD.

8.5.4 The appellant mi$ emonsjratejIe relevancçof thç Issues to tçjus anj

credit issuance and how the CONTROL OFFICER’S decision is in contradiction to

the rules.

58.5.5 Only issues related to eligibility and aooroval determinations are subiectio

appeal. Issues related to completeness determination are not subject to aooeal.

58.6 Section 58 ERG Restrictions and Limitations

58.6.1 ERC Banking Restrictions and Umitations. The creation and BANKING of Section

58ERCS shall not V

. (a) provide authority for or the recoanWon of any øre-edsting vested riaht to emit

any Reaulated Air Pollutant

(b) orovide Section 58 ERCs to any STATIONARY SOURCE for exemotion from the

BACT or LAER reauirements pursuant to Air Quality Regulations;

(c) provide dual accounting of ERCs for EMISSlONreductions that have already V

been included as Part of the Clark CounWs baseline EMISSION in the STATE

Imolernentation Pian:

Cd) provide Section 58 ERCs for EMISSION reductions already reauired by law:

(e) provide Section 58 ERCs for EMISSION reductions at non-oermnitted

STATIONARY SOURCE:

Amended 58-9

CC Air Quality Regulations

9
jD/Z.3,ô3

‘113

(f) provide Section 58 ERCs for EMISSION reductions achieved during p . moratorium øeriod in accordance with Subsection 58.6.4 herein:

(cii provide Section 58 ERCs for EMISSION reductions from a oermanent

shutdown or MODIFICATiON of p STATIONARY SOURCE where the demand for

the services or. product would merely shift to other sources within Clark

County that would result in an emissions increase of criteria air ooHutants

(h) provide authority for or the recoanition of any rights that would be contrary to

federal. statutory or regulatory Iaw or

I.I dVI4 PI. -“‘--‘“- I IJUVJI I toa STATIONARY. SOURCE from any other airpdllution

control 1eauirernente whatsoever of federal. STAT Or local laws. rules and

reoulations.

58.62 ERCuse Restrictions and Limitations. The use of Section 58 ERCsshali n

58.63

(a.) provide authority for or the recoanition of any pre-existina vested r$aht to emit

any Reaulated Air Pollutant

(b) orovide Section 58 ERCs for EMISSION reductions at non-permitted

STATIONARY SOURCES:

(C) provide Section 58 ERCs for .EMISSION reductions achieved dunno p

moratorium period In accordance with Subsection 58.6.4 herein

(d) provide an exemption to a STATIONARY SOURCE for emission limitations

established in accordance with New Source Performance Standards (NSPS)

pursuant to Section 14:

(e) provide authority for or the recocinhtfon of any riahts that would be contrary to

federal. statutory or reaulatory lw or

(f) provide an exemption to a STATIONARY SOURCE from any other air pollution

control requirements whatsoever of federal. STATE or local laws. rules and

regulations.

Procedure for Use of Sectkn SR FRCs

58.8.3.1 Valid Section 58 ERCs may be used to OFFSET EMISSION increases for a new or . modified STATIONARY SOURCE Dursuant to the reguirements of Section 59.

58.6.3.2 The source ner or RESPONSIBLE OFFICIAL utilizing BANKED Section 58 ERCs to

satisf, OFFSETS must demonstrate to the satisfaction of the CONTROL OFFICES

that such utilization wlil not interfere with the attainment or maintenance of any

ambient ai increments identified in Section 12.

Amended

CC Air Quality Reaulations

58-10
58.6.4 Moratorium on Use of Banked Section 58 ERCs. If the CONTROL OFFiCER

detrmines that additional mandatpry E!4ISjON rçductions will be recesry t attain federal, STATE, or local air Quality standards, then the CONTROL OFRCER net

dedare a full or Dartial moratorium on the use of Section 58 ERCs or the BANKING of

Section 58 ERCs for the aoolicable Requlated AAr Pollutant. Such a moraknum

shall Le lifted after the CON’RoL OFFiCER d rijnesthe,appiable portion of flip STATE lmølemer,tafion Plan demonstrates attainment of such standard.

Amended 58-11

CC Air Quality Regulations

‘I