5 Colo. Code Regs. § 1001-10-D-XII

Current through Register Vol. 47, No. 16, August 25, 2024

Section 5 CCR 1001-10-D-XII - Permit Fee Credits

XII.A. Applicability and Scope

XII.A.1. The provisions of this Section XII. shall be applicable to any source of hazardous air pollutants participating in the federal or state early reductions program described in Sections I. through XI. of this regulation, or in the E.P.A.'s 33/50 voluntary pollution prevention program, as set forth, and that make reductions in actual emissions of hazardous air pollutants subsequent to July 1, 1992.

XII.A.2. The permit fee credit described in this section shall be available to a source on a one-time basis, and shall only be available in the year following the continuous 12-month period in which the source made its air emissions reduction or its reduction demonstration. If a source is unable to fully use the fee credit in the year following the 12-month period in which the source achieved its reduction or demonstration, the unused portion of the fee credit may be banked for use in the next year or years and shall be utilized to the maximum extent possible in each year. Qualifying sources of hazardous air pollutants may not carry over emissions reductions from previous years, except that sources claiming emissions reductions from July 1, 1992 shall be allowed to claim such reductions until April 30,1995.

XII.A.3. The permit fee credit, to the extent funded by the Colorado general assembly, shall be utilized as a credit against the annual fees described in Section 25-7-114.7, C.R.S. (1989 & 1993 Supp.), and may be used for no other purpose.

XII.A.4. The permit fee credit described in this section shall be subject to annual appropriations from the Colorado general assembly allocated for this purpose. Permit fee credits shall be distributed (on a 2 credits for each 1 ton of emissions reduced) to qualifying sources on a proportional basis, dependent upon the annual funding, the number of sources seeking the permit fee credit, and the amount of emissions reductions realized in any given year.

XII.A.5. Sources applying for a permit fee credit pursuant to this section shall not be allowed to bank or trade any air emissions for which a permit fee credit is sought or has been received.

XII.A.6. The permit fee credit is nontransferable.

XII.B. General Provisions for Permit Fee Credits

XII.B.1. The following sources may apply for a permit fee credit pursuant to this section:

XII.B.1.a. any source, as defined in Section IV. of this regulation -

XII.B.1.a.(i) that is participating in the early reductions program, Sections I. through XI. of this regulation;

XII.B.1.a.(ii) that makes a reduction in its hazardous air pollutant emissions after July 1, 1992; and

XII.B.1.a.(iii) that demonstrates to the Division's satisfaction that the reductions for which a permit fee credit is sought are credible, quantifiable, replicable, and made permanent with a State enforceable permit emissions cap or limitation or federally enforceable emissions cap or limitation where applicable; or

XII.B.1.b. any source that is participating in the EPA's 33/50 voluntary pollution prevention program -

XII.B.1.b.(i) that is located in the State of Colorado;

XII.B.1.b.(ii) that meets the EPA's national goal of a 50% reduction in its air emissions of one or more of the following substances by December 31, 1995:

XII.B.1.b.(ii)(A) metals: cadmium (& cadmium compounds); chromium (& chromium compounds); lead (& lead compounds); mercury (& mercury compounds); nickel (& nickel compounds);

XII.B.1.b.(ii)(B) chlorinated organics: carbon tetrachloride; chloroform; methylene chloride; tetrachloroethylene; 1,1,1-trichloroethane; trichloroethane;

XII.B.1.b.(ii)(C) aromatics: benzene; toluene; xylenes;

XII.B.1.b.(ii)(D) miscellaneous: methyl ethyl ketone; methyl isobutyl ketone; cyanide (& cyanide compounds);

XII.B.1.b.(iii) that demonstrates to the Division's satisfaction (in a manner pursuant to the requirements in Section V. of this regulation) that the reductions for which a permit fee credit is sought are credible, quantifiable, replicable, made permanent with a State enforceable permit emissions cap or limitation or federally enforceable emissions cap or limitation where applicable, and are the result of pollution prevention activity;

XII.B.1.b.(iv) no credit will be given for any reductions made by a source's parent or affiliated facilities;

XII.B.1.b.(v) no credit will be given for a source's reduction of emissions in one of the substances listed in Section XII.B.1.b.(ii)., where the reduction was achieved by merely substituting a listed substance with another hazardous air pollutant not listed in that section, but otherwise listed in Section 25-7-109.3(5), C.R.S. (1993 Supp.).

XII.B.2. Sources participating in the Early Reductions Program of Sections I.-XI. of this regulation and claiming a permit fee credit as a result of a shutdown shall not restart the operations from date of issuance of the permit containing enforceable emissions cap reflecting the emissions reduction due to shutdown, except that:

XII.B.2.a. Sources shall be required to reimburse the Division in an amount equal to that received pursuant to this Section XII. in the event a restart occurs. Such payment shall be made within thirty-(30) days of the restart of such operations.

XII.B.2.b. Sources restarting operations described in this section shall be considered a new source and shall be required to comply with the applicable provisions of Regulation Number 3 concerning new sources, as well as with all other applicable requirements.

XII.B.3. No permit fee credits will be given for emissions reductions that are a result of incorrect reporting on a source's APEN filed with the Division, on the Toxics Release Inventory (TRI) reporting, or on any other report filed with the State of Colorado or the EPA.

XII.B.4. No permit fee credits will be given for emissions reductions that are accompanied by a contemporaneous compensating increase in hazardous air pollutants elsewhere in the facility that would otherwise prohibit participation in the 33/50 program or that decreases the air quality benefit derived from the early reduction commitment.

XII.B.5. Sources shall be required to reimburse the Division within thirty (30) days in an amount equal to that received pursuant to this Section XII. in the event that the source increases its emissions of hazardous air pollutants resulting in a decrease in the air quality benefit derived from the emissions reduction which gave rise to the permit fee credit This reimbursement shall be required at any time during the life of the source since the intent of this program is to achieve permanent reductions.

XII.C. Notification Requirements

XII.C.1. Permit fee credits for sources participating in the early reductions program set forth in this regulation shall:

XII.C.1.a. be available only in the year following the calendar year in which the source makes a qualifying reduction in its air emissions; and

XII.C.1.b. any such source shall notify the Division, in writing on or before April 30 of any year in which the emissions reductions have been achieved in the previous calendar year or will be achieved by December 31 of the same calendar year, of its intent to claim the permit fee credit in the following year, and provide an estimate or actual amount of reductions anticipated or achieved for that year.

XII.C.2. Permit fee credits, for sources which participate in the E.P.A.'s 33/50 voluntary pollution prevention program and qualify for fee credits pursuant to Section XII.B.1.b. of this regulation, shall:

XII.C.2.a. be available no sooner than 1996;

XII.C.2.b. be available only to sources that have achieved 50% reduction in hazardous air pollutants listed in Section XII.B.1.b.(ii) of this regulation by the end of the year in which a permit fee credit is sought A permit fee credit is available only for those reductions achieved in a continuous 12-month period since July 1, 1992.

XII.C.2.c. any such source shall notify the Division, in writing on or before April 30 of 1996, of its intent to claim the permit fee credit in 1996 or later, and shall provide an estimate or actual amount of reductions anticipated or achieved since July 1, 1992.

XII.D. Emissions Reductions Demonstrations

XII.D.1. To qualify for a permit fee credit, a source shall establish its base emissions at the beginning of the year in which the reductions are achieved by providing the best available data accounting for actual emissions during the previous year, of all hazardous air pollutants from each emission point listed in the source (Section V.B.2.), and provide supporting documentation, including

XII.D.1.a. performance test results as well as a description of the test protocol followed, any problems encountered during the test, and a discussion of the validity of the method for measuring the emissions; or

XII.D.1.b. for calculations allowed pursuant to Section V.G. which are based on emission factors, material balance, or engineering principles and submitted as the supporting basis, a step-by-step description of the calculations, including assumptions used and their bases, and a brief rationale for the validity of the calculation method used;

XII.D.1.c. and evidence that the emissions information from the previous year are not artificially or substantially greater than emissions in other years.

XII.D.2. A source shall establish post-reduction emissions by providing the following information:

XII.D.2.a. for emission points listed in the source (Section V.B.2.), a description of all control measures or pollution prevention activities employed to achieve the reduction;

XII.D.2.b. the best available data accounting for actual emissions following employment of emission reduction measures, of all hazardous air pollutants from each emission point in the source;

XII.D.2.c. supporting data including:

XII.D.2.c.(i) for test results, a description of the test protocol followed, any problems encountered during the testing, and a discussion of the validity of the method for measuring the subject emissions; or

XII.D.2.c.(ii) for calculations allowed pursuant to Section V.G. which are based on emission factors, material balance, or engineering principles and submitted as the supporting basis, a step-by-step description of the calculations, including assumptions used and their bases, and a brief rationale for the validity of the calculation method used.

XII.D.3. Emissions reductions from sources or activities that are exempt from the air pollutant emissions notice ("APEN") filing requirements shall not be allowed as part of the emissions reductions demonstration of this Section XII.

XII.D.4. The emissions reductions demonstration required in this Section XII.D. shall be submitted to the Division on or before April 30 of the year following the year in which the reductions were achieved. Sources claiming emissions reductions for reductions made between July 1, 1992 and December 31, 1993 shall submit their emissions reductions demonstration on or before April 30, 1995.

5 CCR 1001-10-D-XII

37 CR 18, September 25, 2014, effective 10/15/2014

38 CR 05, March 10, 2015, effective 3/30/2015

38 CR 18, September 25, 2015, effective 10/15/2015

39 CR 18, September 25, 2016, effective 10/15/2016

40 CR 12, June 25, 2017, effective 7/15/2017

41 CR 11, June 10, 2018, effective 6/30/2018

42 CR 16, August 25, 2019, effective 9/14/2019

43 CR 03, February 10, 2020, effective 1/16/2020

43 CR 03, February 10, 2020, effective 3/1/2020

43 CR 12, June 25, 2020, effective 7/15/2020

44 CR 04, February 25, 2021, effective 3/17/2021

44 CR 12, June 25, 2021, effective 7/15/2021

45 CR 12, June 25, 2022, effective 7/15/2022

46 CR 12, June 25, 2023, effective 7/15/2023

47 CR 12, June 25, 2024, effective 7/15/2024