Texas Administrative Code › Title 30 - ENVIRONMENTAL QUALITY › Part 1 - TEXAS COMMISSION ON ENVIRONMENTAL QUALITY › Chapter 101 - GENERAL AIR QUALITY RULES › Subchapter H - EMISSIONS BANKING AND TRADING › Division 6 - HIGHLY REACTIVE VOLATILE ORGANIC COMPOUND EMISSIONS CAP AND TRADE PROGRAM › Section 101.393 - General Provisions

Current through Reg. 49, No. 28; July 12, 2024
(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.