New York Codes, Rules and Regulations › Title 6 - DEPARTMENT OF ENVIRONMENTAL CONSERVATION › Chapter III - AIR RESOURCES › Subchapter A - PREVENTION AND CONTROL OF AIR CONTAMINATION AND AIR POLLUTION › Part 231 - NEW SOURCE REVIEW FOR NEW AND MODIFIED FACILITIES › Subpart 231-2 - REQUIREMENTS FOR EMISSION UNITS SUBJECT TO THE REGULATION ON OR AFTER NOVEMBER 15, 1992 AND PRIOR TO FEBRUARY 19, 2009 › Section 231-2.6 - Emission reduction credits (ercs)

Current through Register Vol. 46, No. 28, July 10, 2024
This section represents the required provisions and
						criteria for certification, registration, and use of emission reductions as
						ERCs for all emission units (including those that are not subject to Part 201
						of this Title), and for mobile sources and demand side management (DSM). Unless
						otherwise specified, the term ERC in this section refers to past reductions as
						defined in section
						231-2.1  of this
						Subpart.
(a) Certification of emission
					 reductions.
(1) Certification basis. Emission
					 reductions must be certified as ERCs on an emission unit basis.
(2) Certification deadlines. Applicants are
					 encouraged to apply for ERCs soon after the occurrence of the emission
					 reductions, although there are no time restrictions for submittal of ERC
					 applications. The department may deny ERCs if sufficient supporting
					 documentation is not submitted as required by paragraph (5) of this
					 subdivision.
(3) ERC creation
					 mechanisms. ERCs may be created from past or future reductions resulting from
					 facility shutdown, emission unit shutdown, curtailment, source reduction,
					 over-control of emissions beyond an applicable limit or any other reduction
					 mechanism acceptable to the department.
(4) Future reductions. Future reductions
					 shall not be certified if they are not linked to a proposed major facility or
					 proposed source project through enforceable permit conditions. Any certified
					 future reduction shall become invalid if the applicant abandons the proposed
					 major facility or proposed source project linked to the reduction prior to
					 commencement of operation.
(5)
					 Application for ERC certification. The applicant must submit an air permit
					 application requesting a minor permit modification (as defined in Part 201 of
					 this Title) for certification of an emission reduction. Such an application
					 must include the following:
(i) a notarized
					 letter indicating the name and title of the person authorized to act on the
					 company's behalf for certification/transfer of ERCs. Subsequent to the permit
					 modification, an ERC certificate will be issued to the authorized
					 representative for the company;
(ii) a complete Emission Reduction Credit
					 Quantification Form with supporting documentation establishing that the
					 emission reduction is surplus, quantifiable, permanent and enforceable. The
					 above-mentioned ERC criteria are described below:
(a) surplus. The applicant must ensure that
					 the emission reduction for an emission unit is in excess of any reduction
					 required by RACT or MACT or any other regulations applicable to the emission
					 unit during the baseline period for the emission reduction. The determination
					 of "surplus" is as follows:
(1) for an
					 emission reduction which physically occurred prior to the State or Federal
					 Register publication date proposing RACT or MACT requirements, the applicant is
					 eligible for the full amount of the reduction. Otherwise, the applicant is
					 eligible only for the lesser of the prior actual annual emissions or prior
					 allowable annual emissions reflecting RACT or MACT emission limits;
(2) for a future reduction as defined in
					 section
					 231-2.1  of this
					 Subpart, if the date of certification of the ERC is prior to the State or
					 Federal Register publication date proposing RACT or MACT requirements, then the
					 applicant is eligible for the full amount of the reduction. Otherwise, the
					 applicant is eligible only for the lesser of the prior actual annual emissions
					 or prior allowable annual emissions reflecting RACT or MACT emission
					 limits;
(b)
					 quantifiable. The applicant must use a reliable basis for quantifying the
					 reduction. Continuous emissions monitoring data, stack test data, emission
					 statements, EPA's AP-42 data, fuel and solvent purchase records are acceptable
					 bases for quantifying emission reductions;
(c) permanent. The applicant must ensure that
					 all reductions are permanent as defined in section
					 231-2.1  of this
					 Subpart; and
(d) enforceable. For
					 any ERC to be enforceable, the permit modification establishing the ERC must be
					 noticed in the Environmental Notice Bulletin and a local newspaper for a 30-day
					 public comment period.
(6) Retention of ERCs by the department.
(i) For VOC or NO x
					 ERCs (except those meeting the criteria listed in subparagraph [ii] of this
					 paragraph) generated from facility or emission unit shutdowns in a moderate or
					 severe ozone nonattainment area, 25 percent of such ERCs shall be retained by
					 the department and may be used in support of the New York SIP to demonstrate
					 reasonable further progress towards attaining and maintaining the national
					 ambient air quality standard for ozone.
(ii) An ERC is exempt from retention by the
					 department provided it:
(a) is used at the
					 same facility as part of a net emission increase determination of
					 nonapplicability, an internal offset, or as an emission offset; or
(b) occurs at a nonmajor facility.
(7) Certification
					 issuance. Upon approval of an ERC application, the department will issue ERC
					 certification as follows:
(i) Reduction from
					 an emission unit subject to Part 201 of this Title located at a facility
					 subject to a State or title V permit (Subparts 201-5 and 201-6 of this Title).
					 For such a reduction resulting from:
(a)
					 over-control of emissions beyond an applicable limit;
(b) emission unit shutdown;
(c) curtailment; or
(d) source reduction.
A permit modification with federally enforceable special
						conditions representing the emission unit will be issued.
(ii) Reduction from the shutdown
					 of an emission unit subject to Part 201 of this Title located at a facility
					 subject to registration (Subpart 201-4 of this Title). Such a reduction shall
					 be made federally enforceable if the applicant demonstrates to the satisfaction
					 of the department that the emission unit has been physically removed or
					 rendered inoperable.
(iii)
					 Reduction from the shutdown of a facility subject to Part 201 of this Title.
					 Such a reduction shall be made federally enforceable if the applicant
					 surrenders the title V permit, State facility permit, or registration
					 certificate as appropriate.
(iv)
					 Reduction from an emission unit not subject to Part 201 of this Title. Such a
					 reduction shall be made federally enforceable by requiring the applicant to
					 submit a single source SIP revision for department and EPA approval. Upon such
					 approvals, the department will issue a SIP revision approval letter along with
					 appropriate enforceable conditions.
(v) Certificate issuance.
(a) For past reductions (see section
					 231-2.1  of this
					 Subpart) listed in subparagraphs (i) through (iv) of this paragraph, a
					 certificate establishing the amount of the ERCs for each nonattainment
					 contaminant will be issued subsequent to the issuance of the permit
					 modification or SIP revision approval letter, as appropriate.
(b) For future reductions (see section
					 231-2.1  of this
					 Subpart), the permit for the emission unit creating the ERCs would be modified.
					 No certificates will be issued for future reductions.
(vi) Certification date. The date of
					 certification of an emission reduction as an ERC shall be the date of issuance
					 of a certificate establishing the ERCs.
(8) Certification disapproval. If the
					 department determines that the emission reduction cannot be certified, the
					 applicant shall be notified in writing of the reasons for such
					 determination.
(9) Issuance of
					 certificates for ERCs which have been previously certified through permit
					 modifications. A certificate establishing the amount of ERCs will be issued by
					 the department to the owner of any available ERCs listed in the New York State
					 ERC Registry.
(10) Mobile source
					 and demand side management ERCs. Applications for mobile sources and demand
					 side management ERCs will be approved by the department on a case-by-case basis
					 upon submittal of acceptable protocols. A single source SIP revision must be
					 submitted by the department to EPA for approval to make the ERC federally
					 enforceable. A certificate establishing the amount of the ERCs will be issued
					 along with the SIP revision approval letter.