Sec. 231-10.3. Applications for ERC approval

This section applies to applications for ERCs at sources subject to Part 201 of this Title.

(a) Application procedures.

(1) For approval of ERCs from a facility subject to Subpart 201-5 or 201-6 of this Title, other than a facility shutdown, the facility owner or operator must submit an application for a permit modification.

(2) For approval of ERCs from a registered facility, other than a facility shutdown, the owner or operator must apply for a State facility permit.

(3) For approval of ERCs as a result of shutdown of a facility subject to Subpart 201-5 or 201-6 of this Title, the facility owner or operator must submit a written request to the department to discontinue the permit.

(4) For approval of ERCs as a result of shutdown of a registered facility, the facility owner or operator must submit a written request to the department to discontinue the registration.

(b) Application content.

A permit application involving ERCs must include the following information:

(1) The signature of a responsible official or other representative authorized to act on behalf of the facility with respect to the ERCs.

(2) A complete "emission reduction credit quantification form" with supporting documentation establishing that the emission reduction is surplus, quantifiable, permanent and enforceable.

(i) Surplus. The applicant must demonstrate to the satisfaction of the department that the emission reduction for an emission source is in excess of any reduction required by RACT or MACT or any other regulations applicable to the emission source during the baseline period for the emission reduction. The determination of "surplus" is as follows:

(a) For an emission reduction which physically occurred prior to the State or Federal register publication date proposing RACT, MACT, or any other applicable requirements, the applicant is eligible for the full amount of the reduction. Otherwise, the applicant is eligible only for the baseline actual emissions reflecting RACT, MACT, or any other applicable emission limits.

(b) For a future reduction as defined in this Part, if the date of approval of the ERC is prior to the State or Federal Register publication date proposing RACT, MACT, or any other applicable requirements, then the applicant is eligible for the full amount of the reduction. Otherwise, the applicant is eligible only for the baseline actual emissions reflecting RACT, MACT, or any other applicable emission limits.

(c) For an emission source with a source specific RACT determination, emissions in excess of the statutory RACT limit shall not be considered as surplus. In those instances, the emission source’s actual operating parameters shall be used in conjunction with the statutory RACT limit to determine the baseline actual emissions.

(ii) Quantifiable. The applicant must use a reliable basis for quantifying the reduction. Continuous emissions monitoring (CEM) data or stack test data approved by the department must be used if the facility is required to generate such data. Emission statements, EPA's AP-42 emission factors, and fuel and solvent purchase records, with department approval, are acceptable bases for quantifying baseline actual emissions if an applicant demonstrates to the department's satisfaction that CEM or stack test data are not available and that CEM or stack test data was not a permit requirement.

(iii) Permanent. The applicant must demonstrate to the satisfaction of the department that all emission reductions will be permanent.

(iv) Enforceable.

(a) For a facility which submits a written request to the department to discontinue its permit or registration (facility shutdown) pursuant to this section, no further action is required.

(b) For an emission source shutdown where the facility will continue to operate, the applicant must apply for and obtain a permit modification in accordance with this section which reflects the permanent shutdown of the emission source through a permit condition prohibiting operation of the emission source, or physically removes the emission source from the permit.

(c) For an emission source which will continue to operate at the facility, the applicant must submit for department approval a monitoring, recordkeeping, and reporting strategy that will be used to demonstrate that the emission reductions are verifiable. If approvable, the department will include terms and conditions in the operating permit which implement the applicant's strategy. If the department determines the strategy is incomplete or otherwise not approvable, the department may propose terms and conditions for the permit or as part of a proposed single source SIP revision as appropriate to ensure that the emission reductions are verifiable.

(d) Any permit modification must be processed in accordance with this Subpart.