7 Del. Admin. Code § 1134-9.0

Current through Register Vol. 28, No. 1, July 1, 2024

Section 1134-9.0 - Trading and Use of ERCS

9.1 No person shall trade ERCs to another person unless written notice is given to the Department not later than 30 days after the trade, indicating that the trade is agreeable to both persons. This notification shall include the following information:

9.1.1 The names and addresses of the previous owner and the new owner, the name and address of generator (if different from owner), the name and telephone number of the Responsible Officials providing notice of the trade, and when applicable, the permit number of each emission unit involved in the emission reduction;

9.1.2 The quantity and the specific identity of the ERCs to be traded, as identified in the banking system established pursuant 11.0 of this regulation, expressed in ozone season tons per year and in non-ozone season tons per year; and

9.1.3 Certification by each Responsible Official that, to the best of the Responsible Official's knowledge, and after reasonable inquiry, the information contained in the notice is true, accurate and complete, the trade is agreeable to both persons and that the new owner will comply with all applicable requirements of this regulation, and acknowledges and accepts the possibility of reduction or elimination of the ERC or ERCs under the provisions of 8.8 of this regulation.

9.2 Each person applying to use ERCs under any applicable regulation shall obtain approval from the Department. The application shall include the following information (in cases where the notification for a trade is submitted simultaneously with the application for use, the applicant may omit any redundant information already provided under 9.1 of this regulation):

9.2.1 Owner's name and address, name and address of generator (if different from owner), name and telephone number of the Responsible Official submitting the application, and when applicable, the permit number of each source involved in the emission reduction;

9.2.2 The quantity of ERCs to be used in ozone season tons per year and in non-ozone season tons per year;

9.2.3 Identification and description of the source at which the ERCs are to be used;

9.2.4 Identification of the specific ERCs to be used, as identified in the banking system established pursuant 11.0 of this regulation;

9.2.5 The intended use for the ERCs (e.g., offsetting or compliance with an applicable emission standard or limitation), and a demonstration/discussion as to how the particular ERC or ERCs satisfy all requirements of all underlying applicable requirements, to include both the quantity of ERC or ERCs and the quality of the ERC or ERCs (i.e., geographic location, pollutant type, etc.);

9.2.6 A schedule for using the ERC, subject to applicable restrictions under 9.8 of this regulation;

9.2.7 Compliance assurance measures such as testing, monitoring, record keeping and reporting procedures that demonstrate sufficient ERCs are proposed to be used to satisfy the underlying applicable requirement; and

9.2.8 Certification by the Responsible Official that:

9.2.8.1 To the best of the Responsible Official's knowledge, and after reasonable inquiry, the information contained in the application is true, accurate and complete.

9.2.8.2 The emission unit shall be operated in compliance with all applicable requirements and the conditions and requirements for the use of ERCs under this regulation.

9.3 The Department shall use its best efforts to either deem an application concerning the proposed use of ERCs complete or return that application to the applicant with deficiencies noted within 60 days of it being received by the Department. It shall be the responsibility of the applicant to supply all supplemental documentation that the Department requests as necessary to evaluate the application.

9.4 Rejection of an application by the Department regarding the proposed use of ERCs shall be accompanied with appropriate correspondence identifying deficiencies.

9.5 The methods used and operational changes made to accommodate the use of ERCs for which a complete application is submitted to the Department shall become legally enforceable operating requirements. Such operating requirements shall be incorporated into a permit to construct or an operating permit under 7 DE Admin. Codes1102, 1125 or 1130.

9.6 As part of the permitting process, the Department will provide for public notice and comment pursuant to 12.3 of 7DE Admin. Code1102 or 7.10 of 7 DE Admin. Code1130, as applicable.

9.7 Upon issuance of a permit to accommodate the use of ERCs, ERCs relied upon shall no longer be ERCs. The emission reductions associated with those ERCs may, after cancellation or modification of the permit that provides for the use, be again submitted to the Department for certification under this regulation provided all of the criteria of this regulation are satisfied.

9.8 The use of ERCs is subject to the following restrictions:

9.8.1 ERCs shall not be used to satisfy an applicable requirement unless the particular ERCs meet all of the requirements of this regulation and the particular applicable requirement, and the use of ERCs is specifically provided for by that applicable requirement. ERCs generated by this program shall not be used to meet the requirements of, or result in violation of Delaware law or any requirement mandated by Congress in the Federal Clean Air Act, which include New Source Performance Standards (NSPS), National Emission Standards for Hazardous Air Pollutants (NESHAPS), Lowest Achievable Emission Rate (LAER), Best Available Control Technology (BACT), standards for solid waste combustion (Section 129), requirements for vehicle inspection and maintenance programs (Section 182(b)(4)), clean fueled fleet requirements (Section 246), motor vehicle emission standards (Section 202), nonroad vehicle standards (Section 213), requirements for reformulated gas (Section 211(k)), requirements for Reid vapor pressure standards (Section 211(h) and (i)), any motor vehicle emission standards specified in 7DE Admin. Code1100 (the State of Delaware Regulations Governing the Control of Air Pollution), and any Maximum Achievable Control Technology (MACT). Use of ERCs shall also not result in a violation of National Ambient Air Quality Standards (NAAQS), including prevention of significant deterioration (PSD) increments for NO_x.

9.8.2 ERCs may not be used to comply with performance standards established by regulation such as operating procedure requirements (e.g., covers on degreasers, operating within a specific temperature range) or to comply with requirements for record keeping, reporting or testing as may be required by the Department.

9.8.3 Except as specifically provided for in an underlying applicable requirement an ERC generated through emission reductions of VOCs cannot be used to allow emission increases of NO_x, and an ERC generated through emission reductions of NO_x cannot be used to allow emission increases of VOCs.

9.8.4 ERCs generated by the use of seasonal control of VOC and NO_x during the period April 1 through October 31 can be used at any time during the calendar year. ERCs generated by using seasonal control of VOC and NO_x during the period November 1 through March 31 can only be used in the same season as generated (November 1 through March 31).

9.8.5 ERCs may not be used in an area with a higher nonattainment classification than the one in which they were generated. Emission units located in areas designated as attainment or marginal nonattainment areas that are located within the ozone transport region shall be considered located in moderate ozone nonattainment areas for the purpose of this regulation.

9.8.6 The use of ERCs that would result in an increase in the maximum hourly emission rate from an emission unit at an existing stationary source or from an existing area source, is prohibited unless it can be demonstrated, and the Department agrees with the demonstration, that the increased hourly emission rate will not cause a condition of air pollution.

9.8.7 ERCs cannot be used by major sources to attain synthetic minor status.

10/06/1997

7 Del. Admin. Code § 1134-9.0