Current through Register Vol. 35, No. 18, September 24, 2024
A. For sources and
modifications subject to any preconstruction review program adopted pursuant to
Subsection
40 CFR
51.165(a), the baseline for
determining credit for emissions reductions is the emissions limit under the
applicable state implementation plan (SIP) in effect at the time the
application to construct is filed, except that the offset baseline shall be the
actual emissions of the source from which offset credit is obtained where:
(1) the demonstration of reasonable further
progress and attainment of ambient air quality standards is based upon the
actual emissions of sources located within a designated nonattainment area for
which the preconstruction review program was adopted; or
(2) the applicable SIP does not contain an
emissions limitation for that source or source category.
B. Combustion of fuels.
(1) Where the emissions limit under the
applicable SIP allows greater emissions than the potential to emit of the
source, emissions offset credit will be allowed only for control below this
potential.
(2) For an existing fuel
combustion source, credit shall be based on the allowable emissions under the
applicable SIP for the type of fuel being burned at the time the permit
application to construct is filed. If the existing source commits to switch to
a cleaner fuel at some future date, emissions offset credit based on the
allowable (or actual) emissions for the fuels involved is not acceptable,
unless the permit is conditioned to require the use of a specified alternative
control measure, which would achieve the same degree of emission reduction
should the source switch back to a dirtier fuel at some later date. The
department should ensure that adequate long-term supplies of the new fuel are
available before granting emissions offset credit for fuel switches.
(3) Emission reduction credit from shutdowns
and curtailments.
(a) Emissions reductions
achieved by shutting down an existing emission unit or curtailing production or
operating hours may be generally credited for offsets if they meet the
requirements in Items (i) and (ii) of Subparagraph (a) of Paragraph (3) of
Subsection B of 20.11.60.15 NMAC.
(i) Such
reductions are surplus, permanent, quantifiable, and federally
enforceable.
(ii) The shutdown or
curtailment occurred after the last day of the base year for the SIP planning
process. For purposes of Item (ii) of Subparagraph (a) of Paragraph (3) of
Subsection B of 20.11.60.15 NMAC, the department may choose to consider a prior
shutdown or curtailment to have occurred after the last day of the base year if
the projected emissions inventory used to develop the attainment demonstration
explicitly includes the emissions from such previously shutdown or curtailed
emission units. However, in no event may credit be given for shutdowns that
occurred before August 7, 1977.
(b) Emissions reductions achieved by shutting
down an existing emissions unit or curtailing production or operating hours and
that do not meet the requirements in Item (ii) of Subparagraph (a) of Paragraph
(3) of Subsection B of 20.11.60.15 NMAC may be generally credited only if:
(i) the shutdown or curtailment occurred on
or after the date the construction permit application is filed; or
(ii) the applicant can establish that the
proposed new emissions unit is a replacement for the shutdown or curtailed
emissions unit, and the emissions reductions achieved by the shutdown or
curtailment met the requirements of Item (i) of Subparagraph (a) of Paragraph
(3) of Subsection B of 20.11.60.15 NMAC.
(4) No emissions credit shall be allowed for
replacing one hydrocarbon compound with another of lesser reactivity, except
for those compounds listed in Table 1 of EPA's Recommended Policy on
Control of Volatile Organic Compounds (42 FR 35314, July 8, 1977) and
any amendments thereto.
(5) All
emission reductions claimed as offset credit shall be federally
enforceable.
(6) Procedures
relating to the permissible location of offsetting emissions shall be followed
which are at least as stringent as those set out in 40 CFR Part 51 Appendix S
Section IV.D.
(7) Credit for an
emissions reduction can be claimed to the extent that the department has not
relied on it in issuing any permit under regulations approved pursuant to 40
CFR Part 51 Subpart I or the department has not relied on it in demonstration
attainment or reasonable further progress.
(8) [Reserved]
(9) [Reserved]
(10) The total tonnage of increased
emissions, in tons per year, resulting from a major modification that must be
offset in accordance with Section 173 of the federal Clean Air Act shall be
determined by summing the difference between the allowable emissions after the
modification and the actual emissions before the modification for each
emissions unit.
C. All
emission reductions claimed as offset credit shall occur prior to or concurrent
with the start of operation of the proposed source. In addition, past
reductions must have occurred later than the date upon which the area became
nonattainment in order to be creditable.
D. The owner or operator desiring to utilize
an emission reduction as an offset shall submit to the department the following
information:
(1) a detailed description of
the process to be controlled and the control technology to be used;
and
(2) emission calculations
showing the types and amounts of actual emissions to be reduced; and
(3) the effective date of the
reduction.