New Mexico Administrative Code
Title 20 - ENVIRONMENTAL PROTECTION
Chapter 2 - AIR QUALITY (STATEWIDE)
Part 81 - WESTERN BACKSTOP SULFUR DIOXIDE TRADING PROGRAM
Section 20.2.81.104 - ALLOWANCE ALLOCATIONS

Universal Citation: 20 NM Admin Code 20.2.81.104

Current through Register Vol. 35, No. 6, March 26, 2024

A. The tracking system administrator shall record the allowances for each WEB source in the compliance account for a WEB source once the allowances are allocated by the department under section C1 of the sulfur dioxide milestones and backstop trading program implementation plan. If applicable, the tracking system administrator shall record a portion of the sulfur dioxide allowances for a WEB source in a special reserve account assigned to the department to account for any allowances to be held by the Department in accordance with Subsection B of 20.2.81.106 NMAC.

B. The tracking system administrator shall assign a serial number to each allowance in accordance with section C2 of the sulfur dioxidemilestones and backstop trading program implementation plan.

C. All allowances shall be allocated, recorded, transferred, or used as whole allowances. To determine the number of whole allowances, the number of allowances shall be rounded down for decimals less than 0.50 and rounded up for decimals of 0.50 or greater.

D. Anallowance is not a property right, and is a limited authorization to emit one ton of sulfur dioxide valid only for the purpose of meeting the requirements of 20.2.81 NMAC. No provision of this WEB trading program or other law should be construed to limit the authority of the United States or the department to terminate or limit such authorization.

E. Early reduction bonus allocation. Any WEB source that reduces permitted annual sulfur dioxide emissions to a level that is below the floor level allocation established for that source in section C1 of the sulfur dioxide milestones and backstop trading program implementation plan between 2003 and the program trigger year may apply to the department for an early reduction bonus allocation. The application shall be submitted no later than ninety days after the program trigger date. Any WEB source that applies and receives early reduction bonus allocations shall retain the records referenced below for a minimum of five years after the early reduction bonus allowance is certified in accordance with section C1.1(a) (3) of the implementation plan. The application for an early reduction bonus allocation shall contain the following information.

(1) Copies of all permits or other enforceable documents that include annual sulfur dioxide emissions limits for the WEB source during the period the WEB source was generating the early reductions. Such permits or enforceable documents shall require monitoring for sulfur dioxide emissions that meets the requirements in Subsection A and Subsection C of 20.2.81.106 NMAC and that the monitoring provisions were in effect one year prior to the beginning of the credit generating period.

(2) Copies of emissions monitoring reports, for one year prior to the beginning of the credit generating period and for the period the WEB source was generating the early reductions, that documents the actual annual sulfur dioxide emissions. The emissions monitoring reports during the credit generating period must demonstrate that the actual annual sulfur dioxide emissions were below the floor level allocation established for that source in section C1 of the sulfur dioxide milestones and backstop trading program implementation plan.

(3) Demonstration that the floor level established for the source in accordance with section C1 of the sulfur dioxide milestones and backstop trading program implementation plan was calculated using data that are consistent with the new monitoring methodology under Subsection A of 20.2.81.106 NMAC. If new monitoring techniques change the floor level for the source, then a demonstration of the new floor level based on new monitoring techniques shall be included in the application.

F. Request for allowances for new WEB sources or modified WEB sources.

(1) A new WEB source or an existing WEB source that has increased production capacity through a permitted change in operations under 20.2.72 NMAC, 20.2.74 NMAC or 20.2.79 NMAC may apply to the department for an allocation from the new source set-aside, as outlined in section C1.3 of the implementation plan.
(a) A new WEB source is eligible to apply for an annual allocation equal to the permitted annual sulfur dioxide emission limit for that source after the source has commenced operation.

(b) An existing WEB source is eligible to apply for an annual allocation equal to the permitted annual sulfur dioxide emission limit for that source that is attributable to any amount of production capacity that is greater than the permitted production capacity for that source as of January 1, 2003.

(c) A source that has received a retired source exemption under Subsection D of 20.2.81.101 NMAC is not eligible to apply for an allocation from the new source set-aside.

(2) The application for an allocation from the new source set-aside shall contain the following information:
(a) for existing WEB sources, documentation that shows the permitted production capacity of the source before and after the new permit; or

(b) for new WEB sources, documentation of the actual date of the commencement of operation and a copy of the permit.

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