Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part I - Department of Environmental Protection › Subpart C - Protection of Natural Resources › Article III - Air Resources › Chapter 130 - STANDARDS FOR PRODUCTS › Subchapter B - CONSUMER PRODUCTS › ACP FOR CONSUMER PRODUCTS › Section 130.456 - Surplus reductions and surplus trading

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The Department will issue surplus
						  reduction certificates which establish and quantify, to the nearest pound of
						  VOC reduced, surplus reductions achieved by a responsible ACP party operating
						  under an ACP. The surplus reductions can be bought from, sold to or transferred
						  to a responsible ACP party operating under an ACP, as provided in this section.
						  Surplus reductions will be calculated by the Department at the end of each
						  compliance period within the time specified in the approved ACP. Surplus
						  reduction certificates do not constitute instruments, securities or other form
						  of property.
(b) The issuance, use
						  and trading of all surplus reductions shall be subject to the following
						  provisions:
(1) For the purposes of this
						  section, VOC reductions from sources of VOCs other than consumer products
						  subject to the VOC standards specified in §
														130.211 (relating to table of
						  standards) may not be used to generate surplus reductions.
(2) Surplus reductions are valid only when
						  generated by a responsible ACP party, and only while that responsible ACP party
						  is operating under an approved ACP.
(3) Surplus reductions are valid only after
						  the Department has issued an ACP agreement under this section.
(4) Surplus reductions issued by the
						  Department may be used by the responsible ACP party who generated the surplus
						  until the reductions expire or are traded or until the ACP is canceled under
						  this section.
(5) Surplus
						  reductions cannot be applied retroactively to a compliance period prior to the
						  compliance period in which the reductions were generated.
(6) Except as provided in this section, only
						  small or one-product businesses selling products under an approved ACP may
						  purchase surplus reductions. An increase in the size of a small business or
						  one-product business shall have no effect on surplus reductions purchased by
						  that business prior to the date of the increase.
(7) While valid, surplus reductions can be
						  used only for one of the following purposes:
(i) To adjust the ACP emissions of either the
						  responsible ACP party who generated the reductions or the responsible ACP party
						  to which the reductions were traded, provided the surplus reductions are not to
						  be used by a responsible ACP party to further lower its ACP emissions when its
						  ACP emissions are equal to or less than the ACP limit during the applicable
						  compliance period.
(ii) To be
						  traded for the purpose of reconciling another responsible ACP party's
						  shortfalls, provided the reconciliation is part of the reconciliation of
						  shortfalls plan approved by the Department under this section.
(8) A valid surplus reduction
						  shall be in effect starting 5 days after the date of issuance by the
						  Department, for a continuous period equal to the number of days in the
						  compliance period during which the surplus reduction was generated. The surplus
						  reduction shall then expire at the end of its effective period.
(9) At least 5 working days prior to the
						  effective date of transfer of surplus reductions, both the responsible ACP
						  party which is selling surplus reductions and the responsible ACP party which
						  is buying the surplus reductions shall, either together or separately, notify
						  the Department in writing of the transfer. The notification shall include the
						  following:
(i) The date the transfer is to
						  become effective.
(ii) The date the
						  surplus reductions being traded are due to expire.
(iii) The amount (in pounds of VOCs) of
						  surplus reductions that are being transferred.
(iv) The total purchase price paid by the
						  buyer for the surplus reductions.
(v) The contact persons, names of the
						  companies, street and mail addresses and phone numbers of the responsible ACP
						  parties involved in the trading of the surplus reductions.
(vi) A copy of the Department-issued surplus
						  reductions certificate, signed by both the seller and buyer of the certificate,
						  showing transfer of all or a specified portion of the surplus reductions. The
						  copy shall show the amount of remaining nontraded surplus reductions, if
						  applicable, and shall show their expiration date. The copy shall indicate that
						  both the buyer and seller of the surplus reductions fully understand the
						  conditions and limitations placed upon the transfer of the surplus reductions
						  and accept full responsibility for the appropriate use of the surplus
						  reductions as provided in this section.
(10) Surplus reduction credits shall only be
						  traded between ACPs for consumer products.