Statutes, codes, and regulations
New Jersey Administrative Code
Title 7 - ENVIRONMENTAL PROTECTIONChapter 27 - AIR POLLUTION CONTROL
Subchapter 18 - CONTROL AND PROHIBITION OF AIR POLLUTION FROM NEW OR ALTERED SOURCES AFFECTING AMBIENT AIR QUALITY (EMISSION OFFSET RULES)
Section 7:27-18.5 - Standards for use of emission reductions as emission offsets

N.J. Admin. Code § 7:27-18.5

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Current through Register Vol. 56, No. 24, December 18, 2024
Section 7:27-18.5 - Standards for use of emission reductions as emission offsets
(a) Only a creditable emissions reduction, as defined at N.J.A.C. 7:27-18.1, may be used to offset an emission increase. Such emission reductions shall be:
i. Contemporaneous; or
ii. Banked in accordance with N.J.A.C. 7:27-18.8.
(b) Creditable emission reductions may result from:
1. Installing control apparatus to decrease the actual emissions from existing equipment or source operations;
2. Applying fugitive emissions control measures which reduce the rate of actual emissions to less than the allowable emissions;
3. Obtaining emission reductions banked pursuant to N.J.A.C. 7:27-18.8;
4. Permanently curtailing the actual production rate or operating hours of an existing source operation;
5. Implementing one or more transportation control measures (TCM);
6. Shutting down an existing source operation; or
7. Adopting any other measure approved by the Department, including, but not limited to, pollution prevention measures, that reduces the rate of actual emissions or allowable emissions, whichever is lesser.
(c) Any use of emission reductions to offset an emission increase shall result in a net air quality benefit. Except as provided in (e), (f), (g), or (l) below, such net air quality benefit shall be demonstrated by showing that the ratio of emission offsets to the proposed net increase in allowable emissions equals or exceeds the minimum offset ratio, specified in Table 2 below, that is applicable based on the distance between the facility and the location of the emission reductions being proposed as emission offsets.

TABLE 2

MINIMUM OFFSET RATIO

Air ContaminantDistance (miles)Minimum Offset Ratio
(Reductions: Increase)
VOC0-1001.3:1.0
100-2502.6:1.0
250-5005.2:1.0
NO[x] (as a PM[2.5] Any 1.0:1.0 precursor)Any1.0:1.0
NO[x]0-1001.3:1.0
100-2502.6:1.0
250-5005.2:1.0
SO[2] (as a PM[2.5] precursor)Any1.0:1.0
SO[2]0-0.51.0:1.0
0.5-1.01.5:1.0
1.0-2.02.0:1.0
TSP0-0.51.0:1.0
0.5-1.01.5:1.0
1.0-2.02.0:1.0
PM[10]0-0.51.0:1.0
0.5-1.01.5:1.0
1.0-2.02.0:1.0
PM[2.5]Any1.0:1.0
CO0-0.51.0:1.0
0.5-1.01.5:1.0
1.0-2.02.0:1.0

(d) The minimum offset ratio for lead is 1.00:1.00.
(e) If an applicant proposes to use, as emission offsets, emission reductions that do not satisfy the distance and ratio requirements in Table 2 in (c) above, an air quality simulation model shall be used to demonstrate a net air quality benefit. Such emission reductions shall not be used as emission offsets unless the air quality simulation model shows that the combined effects of the proposed emission reductions, and of meeting the LAER requirements at N.J.A.C. 7:27-18.3(b), will result in a net air quality benefit. An air quality simulation model shall be performed in accordance with a protocol approved by the Department. The protocol shall be prepared in accordance with the Department's technical manual on Air Quality Modeling (Technical Manual 1002), available as stated in N.J.A.C. 7:27-18.4(c).
(f) Notwithstanding (e) above, in no case shall the minimum offset ratio be less than:
1. For CO, NO (as a PM precursor), and SO (as a PM precursor), 1.00:1.00; and
2. For VOC and NO[x], 1.30:1.00.
(g) Creditable emission reductions may be used as emission offsets only:
1. If they are qualitatively equivalent in their effects on public health and welfare to the effects attributable to the proposed increase; and
2. If they are emission reductions of the same category of air contaminant, except as provided at (l) below.
(h) Reductions in emissions of VOC or NO[x] between October 1 and April 30 inclusive, may not be used to offset increased emissions of VOC or NO[x] emitted between May 1 and September 30 inclusive.
(i) Emission reductions used previously as emission offsets, or used in calculating the proposed net emission increase, in accordance with N.J.A.C. 7:27-18.7(a)1, may not be used again as emission offsets.
(j) Except as provided in (k) below, the emission reductions used to offset emission increases shall, unless the facility for which the emissions increase is proposed is located in an attainment area, be secured from the applicant's facility or from another facility located in the same nonattainment area as the applicant's facility. In a case where the facility at which the emissions increase is to occur is located in an attainment area, the emission reductions shall be secured from a facility in the nonattainment area whose air quality could be adversely affected by the proposed construction or alteration. In both cases, if the area has been designated a nonattainment area by EPA pursuant to 40 CFR 81.331, the emission reductions shall be secured from the same Federally-designated nonattainment area.
(k) Any emission offsets for lead shall be obtained from:
1. The facility to which the application for a permit pertains; or
2. Another facility which significantly contributes to the same violation of the NAAQS or NJAAQS for lead in the same nonattainment area as the facility for which an application for a permit has been made.
(l) An applicant that provides for the use of PM[2.5] inter-pollutant offsets shall demonstrate the net air quality benefit required at (c) above by showing that the ratio of emission offsets to the proposed net increase in allowable emissions equals or exceeds one of the following minimum offset ratios:
1. A PM[2.5] inter-pollutant offset ratio established by the Department, approved by EPA, and published by the Department in Technical Manual 1002, "Guidance on Preparing an Air Quality Modeling Protocol";
2. A PM[2.5] inter-pollutant offset ratio established by EPA and approved by the Department; or
3. A regional PM[2.5] inter-pollutant offset ratio developed by the applicant or by a regional air pollution control organization that includes a technical demonstration showing a net air quality benefit, and is approved by the Department and EPA.
(m) When a NO[x] offset is required pursuant to N.J.A.C. 7:27-18.3(c) or (d), the NO[x] offset shall be secured based on the more stringent of the two applicable NO[x] offset ratios.
(n) PM[2.5] inter-pollutant offsets cannot be used to determine significant net emission increase levels pursuant to N.J.A.C. 7:27-18.7.

N.J. Admin. Code § 7:27-18.5

Amended by 49 N.J.R. 3511(a), effective 11/6/2017