N.M. Code R. § 20.11.46.11

Current through Register Vol. 35, No. 12, June 25, 2024

Section 20.11.46.11 - WEB TRADING PROGRAM APPLICABILITY

A. General applicability: 20.11.46 NMAC applies to any stationary source or group of stationary sources that are located on one or more contiguous or adjacent properties and which are under the control of the same person or persons under common control, belonging to the same industrial grouping, and that are described in Paragraphs (1) through (4) of Subsection B of 20.11.46.11 NMAC. A stationary source or group of stationary sources shall be considered part of a single industrial grouping if all of the pollutant emitting activities at such source or group of sources on contiguous or adjacent properties belong to the same major group (i.e., all have the same two-digit code as described in the standard industrial classification manual, 1987, or three-digit code as described in the North American Industry Classification System (NAICS), 2007).

B. The following are WEB sources.

(1) All BART-eligible sources as defined in 40 CFR 51.301 that are subject to BART due to SO₂ emissions.

(2) All stationary sources not meeting the criteria of Paragraph (1) of Subsection B of 20.11.46.11 NMAC, that have actual SO₂ emissions of 100 tons or more per year in the program trigger years or any subsequent year. The fugitive emissions of a stationary source shall not be considered in determining whether it is a WEB source unless the source belongs to one of the following categories of stationary source:

(a) coal cleaning plants (with thermal dryers);

(b) kraft pulp mills;

(c) portland cement plants;

(d) primary zinc smelters;

(e) iron and steel mills;

(f) primary aluminum ore reduction plants;

(g) primary copper smelters;

(h) municipal incinerators capable of charging more than 250 tons of refuse per day;

(i) hydrofluoric, sulfuric, or nitric acid plants;

(j) petroleum refineries;

(k) lime plants;

(l) phosphate rock processing plants;

(m) coke oven batteries;

(n) sulfur recovery plants;

(o) carbon black plants (furnace process);

(p) primary lead smelters;

(q) fuel conversion plants;

(r) sintering plants;

(s) secondary metal production plants;

(t) chemical process plants;

(u) fossil-fuel boilers (or combination thereof) totaling more than 250 million British thermal units per hour heat input;

(v) petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels;

(w) taconite ore processing plants;

(x) glass fiber processing plants;

(y) charcoal production plants;

(z) fossil-fuel-fired steam electric plants of more than 250 million British thermal units per hour heat input; or

(aa) any other stationary source category, which as of August 7, 1980 is being regulated under Section 111 or 112 of the Clean Air Act.

(3) A new source that begins operation after the program trigger date and has the potential to emit 100 tons or more of SO₂ per year.

(4) The department may determine on a case-by-case basis, with concurrence from the EPA administrator, that a source defined in Paragraph (2) of Subsection B of 20.11.46.11 NMAC is not a WEB source if the source:

(a) had actual SO₂ emissions of less than 100 tons per year, in each of the previous five years; and

(b) had actual SO₂ emissions of 100 tons or more in a single year due to a temporary emission increase that was caused by a sudden, infrequent, and not reasonably preventable failure of air pollution control equipment, failure of process equipment, or a failure to operate in a normal or usual manner; and

(c) took timely and reasonable action to minimize the temporary emission increase; and

(d) has corrected the failure of air pollution control equipment, process equipment, or process by the time of the department's determination under 20.11.46.11 NMAC; or

(e) had to switch fuels or feedstocks on a temporary basis and as a result of an emergency situation or unique and unusual circumstances besides cost of such fuels or feedstocks.

(5) A temporary emission increase due to poor maintenance or careless operation does not meet the criteria of 20.11.46.11 NMAC.

C. Duration of program participation: Except as provided for in Subsection D of 20.11.46.11 NMAC, once a source is subject to the WEB trading program, it will remain in the program every year thereafter.

D. Application for retired source exemption:

(1) Any WEB source that is permanently retired shall apply for a retired source exemption. The WEB source may be considered permanently retired only if all SO₂ emitting units at the source are permanently retired. The application shall contain the following information:

(a) identification of the WEB source, including plant name and an appropriate identification code in a format specified by the department;

(b) name of account representative;

(c) description of the status of the WEB source, including the date that the WEB source was retired;

(d) signed certification that the WEB source is permanently retired and will comply with the requirements of Subsection D of 20.11.46.11 NMAC; and

(e) verification that the WEB source has a general account where any unused allowances or future allocations will be recorded.

(2) Notice: The retired source exemption becomes effective when the department notifies the source that the retired source exemption has been granted.

(3) Responsibilities of retired sources. A retired source shall be exempt from 20.11.46.16 NMAC, monitoring, record keeping and reporting and 20.11.46.19 NMAC, compliance, except as provided below.

(a) A retired source shall not emit any SO₂ after the date the retired source exemption is issued.

(b) A WEB source shall submit SO₂ emissions reports, as required by Subsection H of 20.11.46.16 NMAC for any time period the source was operating prior to the effective date of the retired source exemption. The retired source shall be subject to the compliance provisions of 20.11.46.19 NMAC, compliance, including the requirement to hold allowances in the source's compliance account to cover all SO₂ emissions prior to the date the source was permanently retired.

(c) A retired source that is still in existence but no longer emitting SO₂ shall, for a period of five years from the date the records are created, retain records demonstrating that the source is permanently retired for purposes of 20.11.46 NMAC.

(4) Resumption of operations.

(a) Before resuming operation, the retired source shall submit registration materials as follows:

(i) if the source is required to obtain a new source review permit or operating permit under 20.11.41 NMAC, 20.11.42 NMAC, 20.11.60 NMAC or 20.11.61 NMAC prior to resuming operation, then the source shall submit registration information as described in 20.11.46.13 NMAC and a copy of the retired source exemption with the application required under 20.11.41 NMAC, 20.11.42 NMAC, 20.11.60 NMAC or 20.11.61 NMAC;

(ii) if the source is not required to obtain a new source review permit or operating permit under 20.11.41 NMAC, 20.11.42 NMAC, 20.11.60 NMAC or 20.11.61 NMAC prior to resuming operation, then the source shall submit registration information as described in Subsection A of 20.11.46.13 NMAC and a copy of the retired source exemption to the department at least 90 days prior to resumption of operation.

(b) The retired source exemption shall automatically expire on the day the source resumes operation.

(5) Loss of future allowances: A WEB source that is permanently retired and that does not apply to the department for a retired source exemption within 90 days of the date that the source is permanently retired shall forfeit any unused and future allowances. The abandoned allowances shall be retired by the tracking system administrator.

N.M. Code R. § 20.11.46.11

20.11.46.11 NMAC - N, 12/31/03; A, 9/15/08; A, 5/16/11