Md. Code Regs. 26.11.32.22

Current through Register Vol. 51, No. 12, June 14, 2024

Section 26.11.32.22 - Limited-Use Surplus Reduction Credits for Early Reformulations of ACP Products

A. Early Reformulation.

(1) For the purposes of this regulation, "early reformulation" means an ACP product that is reformulated to result in a reduction in the product's VOC content and that is sold, supplied, or offered for sale in the State for the first time during the 1-year period immediately before the date on which the application for a proposed ACP is submitted to the Department.

(2) "Early reformulation" does not include reformulated ACP products which are sold, supplied, or offered for sale in the State more than 1 year before the date on which the ACP application is submitted to the Department.

B. If requested in the application for a proposed ACP, the Department shall, upon approval of the ACP, issue surplus reduction credits for early reformulation of an ACP product if the responsible ACP party provides, to the satisfaction of the Department, the following:

(1) Accurate documentation showing that the early reformulation reduced the VOC content of the ACP product to a level which is below the pre-ACP VOC content of the product, or below the applicable VOC standard specified in Regulation .04B of this chapter, whichever is the lesser of the two;

(2) Accurate documentation demonstrating that the early reformulated ACP product was sold in State retail outlets within the time period specified in §A(1) of this regulation;

(3) Accurate sales records for the early reformulated ACP product that meet the definition of "enforceable sales records" in Regulation .03B(65) of this chapter, and that demonstrate that the enforceable sales for the ACP product are at least 75 percent of the gross State sales for the product; and

(4) Accurate documentation for the early reformulated ACP product which meets the requirements of this regulation, and which identifies the specific test methods for verifying the claimed early reformulation and the statistical accuracy and precision of the test methods.

C. Surplus reduction credits issued under this regulation are calculated separately for each early reformulated ACP product by the Department according to the following equation:

SR = Enforceable Sales x ((VOC Content)_initial - (VOC Content)_final) / 100

where:

(1) SR = Surplus reductions for the ACP product, expressed to the nearest pound;

(2) Enforceable Sales = The enforceable sales for the early reformulated ACP product, expressed to the nearest pound of ACP product;

(3) VOC Content_initial = The pre-ACP VOC content of the ACP product, or the applicable VOC standard specified in Regulations .04-.10 of this chapter, whichever is the lesser of the two, expressed to the nearest 0.1 pounds of VOC per 100 pounds of ACP product; and

(4) VOC Content_final = The VOC content of the early reformulated ACP product after the early reformulation is achieved, expressed to the nearest 0.1 pounds of VOC per 100 pounds of ACP product.

D. The use of surplus reduction credits issued under this regulation is subject to the following provisions:

(1) Surplus reduction credits will be used solely to reconcile the responsible ACP party's shortfalls, if any, generated during the first compliance period occurring immediately after the issuance of the ACP agreement;

(2) Surplus reduction credits may not be transferred to or used by any other responsible ACP party; and

(3) Except as provided in this regulation, surplus reduction credits are subject to all requirements applicable to surplus reductions and surplus trading, as specified in Regulation .21 of this chapter.

Md. Code Regs. 26.11.32.22