Emissions Bank Rulemaking Overview
This content provides an overview of emissions bank rulemaking, including the reason for the bank, rulemaking authority, amendments to the rule, and requirements for creditable reductions. It covers topics such as nonattainment, new source review, permit requirements, and state/county cooperation in rulemaking.
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Presentation Transcript
Emissions Bank Rulemaking November 3, 2017
Overview Reason for Bank: Offset Creation Rulemaking Authority Rulemaking Components Amendments to emissions bank rule to conform to HB 2152 Rule allowing creation of reductions creditable as offsets by non-permitted sources Slide 2
Reason for Bank Nonattainment New Source Review 100 TPY Source New Major Modification (> 40 TPY Increase) LAER Offset Emissions Increase by Reductions from an existing source For ozone in Maricopa County, at ration of 1.15 to 1 (currently) Slide 3
Rulemaking Authority Not Yet Qualified for Certification Plan for Reduction No Apply for Certification and Deposit Activity Requires Permit? Have Reductions Occurred? Yes Obtain Permit Yes Follow Alternate Procedure (e.g. Rule 242) No State and county rulemaking authority State only rulemaking authority 4
Rulemaking Authority Section 49-112 Before county may a adopt rule that is more stringent or In addition to rule adopted by ADEQ Preconditions Peculiar local condition; and Either Necessary to prevent significant threat; or Required under federal law Public participation in county rulemaking State/county cooperation Slide 5
Amendments to Emissions Bank Rule Purpose: conform Title 18, Ch. 2, Art. 12 to 49-410 as amended by HB 2152 Amendments Allow deposit of ERCs from any activity , i.e. non- permitted sources [B, H] Allow state or political subdivision to deposit ERCs [B] Allow deposit of ERCs for all criteria pollutants and precursors [H.2] Requirements for fleets Specify composition of fleet [G] Operate in nonattainment area [H.2] Slide 6
Amendments to Emissions Bank Rule Mitigate adverse impacts on trucking industry [D] Discount of ERCs already eliminated [D] Add protection of credits; to extent allowed by CAA: Do not expire [E.1] Accounted for in SIP [E.2] No reduction or withdrawal without owner permission [E.3] Slide 7
Creditable Reduction Creation Rule To qualify as offsets in nonattainment area, emission reductions must be Permanent Quantifiable Surplus Real Enforceable Enforceable = Federally enforceable R18-2-404(F); 40 CFR 51.165(a)(3)(ii)(E) Slide 8
Creditable Reduction Creation Rule Permitted Source Creditable Reduction + Enforceable Reduction Obligation Application for Significant Permit Revision ADEQ issues permit? Proposed Conditions: PQSRE Non-Permitted Source Creditable Reduction + Enforceable Reduction Obligation Application for Approval of Emission Reduction Plan ADEQ approves plan? PQSRE 9
Creditable Reduction Creation Rule Alternative 1: Type-Specific Rule State Adopts Rule for Specific Type of ERC (e.g. truck stop electirification) Submits Rule in SIP Revision to EPA EPA Approves Rule? Yes No Emission reductions not creditable No Application for approval of emission reductions Emission reductions are creditable ADEQ approves application Yes Slide 10
Creditable Reduction Creation Rule Alternative 2: General Rule-Process State Adopts Rule Establishing Process for Generating Creditable Reducions Reductions generated under rule are potentially creditable Submits Rule in SIP Revision to EPA EPA Approves Rule? Yes No Reductions generated under plan are creditable Reductions not creditable No No Yes ADEQ submits emission reduction plan to EPA as SIP revision Application for approval of emission reduction plan EPA ADEQ approves approves? Slide 11
Stakeholder Values Timely certification Transparency Predictability Approvable by EPA (ensure credibility) Robust market (through outreach) Free market Broad applicability Stakeholder Values Ease of use Slide 12
