7 Del. Admin. Code § 1134-8.0

Current through Register Vol. 28, No. 1, July 1, 2024
Section 1134-8.0 - Certification of an Emission Reduction
8.1 An emission reduction can only be certified through written approval by the Department after issuance of an enforceable permit to operate to the applicant, which incorporates limits on operations, activity level or emissions that must be maintained to assure the integrity of the ERC, or, in the case of a facility shutdown, termination of applicable permit or permits.
8.2 An emission reduction may be certified as an ERC only after a reduction has actually occurred.
8.3 Schedule for Departmental review:
8.3.1 The Department shall use its best efforts to either deem an application for an ERC complete or return that application to the applicant with deficiencies noted within 60 days of it being received by the Department.
8.3.2 After receiving a complete application, the Department shall use its best efforts to grant or deny the certification of the emission reduction within 180 days from the date the application is deemed complete.
8.3.3 Failure of the Department to meet the time frame of 8.3.1 or 8.3.2 of this regulation shall not preclude certification of the ERC provided that the applicant submitted its initial application within the time period specified in 5.2 or 5.3 of this regulation, as applicable.
8.4 Denial of an ERC application shall be accompanied with appropriate correspondence identifying deficiencies.
8.5 Prior to certifying an emission reduction, the Department will make the following adjustments to both the ozone season and non-ozone season emission reductions that are submitted to the Department for certification:
8.5.1 Credit for all emission reductions, except any reductions generated by shutdowns or generated prior to October 6, 1997, will be reduced by the value of 10% of the total reductions to provide a net air quality benefit.
8.5.2 Credit for emission reductions generated by shutdowns will be reduced by the value of 50% of the total reductions. 25% of the total reductions will be retired to provide a net air quality benefit and 25% will be held in a separate account by the Delaware Department of State, Division of Small Business, for economic development purposes after certification by the Department pursuant to 8.6 of this regulation.
8.5.3 Credit for reductions generated before October 6, 1997 will be adjusted by a discount factor relating to the uncertainty of the emission estimation method used. The amount of the discount will be determined by the Department on a case-by-case basis. Factors that the Department will take into consideration in determining the uncertainty of the emission estimation method used include the nature of the reduction, the validity of the baseline data, and any previous review or inspection of relevant test methods by the Department. The Department will then reduce the adjusted amount by the value of 10% to provide a net air quality benefit.
8.6 The Department shall notify the applicant in writing of the certification of an emission reduction as an ERC, which certification is accomplished by issuing an emission limiting operating permit that is federally enforceable or in the case of a shutdown, by canceling all applicable permit or permits, as applicable, to make the emission reduction permanent and enforceable. In order for the emission-limiting operating permit to become federally enforceable, it must contain the specific quantifiable emission limits reflecting the change in emission rate and reflecting the operating conditions, emissions controls, and other measures taken to generate the ERC. All emissions limitations, controls, and other requirements imposed by such permits must be at least as stringent as all other applicable limitations and requirements contained in the SIP, enforceable under the SIP, or otherwise federally enforceable. All limitations, controls, and other requirements imposed by such permits must be permanent, quantifiable, and otherwise enforceable as a practical matter.
8.7 The owner of an ERC may possess or trade that ERC subject to the restrictions contained in any emission limiting operating permit or permits and this regulation.
8.8 An ERC shall be valid for the life of the surplus emission reduction on which it was based and shall not "expire" or cease to exist after a set period of time unless any of the following occur:
8.8.1 The emission unit is in violation of the conditions under which the Department certified the ERC.
8.8.2 A particular ERC has not been used and a change in regulation affects the emission unit involved in the creation of that ERC, then that ERC may be eliminated under the following circumstances:
8.8.2.1 The Department has, as part of the proposal to make the change in regulation, identified its intent to eliminate all related ERCs that result from the change in regulation at the time the change in regulation takes effect; and
8.8.2.2 That ERC is in the emission bank (i.e., the ERC has not been used) at the time the new regulation takes effect.
8.8.3 The Department, after providing public notice and considering public comment on the intent to eliminate banked ERCs (i.e., ERCs that have not been used), eliminates any or all such ERCs. Nothing in this regulation shall be construed to limit the Department's authority to reduce or eliminate any particular ERCs, by written notice to the owner or owners. No compensation is due whatsoever as a result of such reduction or elimination.
8.8.4 For the purposes of 8.8.2 and 8.8.3 of this regulation, an ERC shall be considered used upon receipt by the Department of an application requesting approval to use that ERC, provided that an operating permit to use that ERC is ultimately issued.

10/06/1997

7 Del. Admin. Code § 1134-8.0

22 DE Reg. 405 (11/1/2018) (Final)