Section 101.306 - Emission Credit Use(a) Uses for emission credits. Unless precluded by a commission order or a condition or conditions within an authorization under the same commission account number, emission credits may be used as the following: (1) offsets for a new source, as defined in § 101.1 of this title (relating to Definitions), or major modification to an existing source;(2) mitigation offsets for action by federal agencies under 40 Code of Federal Regulations Part 93, Subpart B, Determining Conformity of General Federal Actions to State or Federal Implementation Plans;(3) an alternative means of compliance with volatile organic compound and nitrogen oxides reduction requirements to the extent allowed in Chapters 115 and 117 of this title (relating to Control of Air Pollution from Volatile Organic Compounds; and Control of Air Pollution from Nitrogen Compounds);(4) reductions certified as emission credits may be used in netting by the original applicant, if not used, sold, reserved for use, or otherwise relied upon, as provided by Chapter 116, Subchapter B of this title (relating to New Source Review Permits); or(5) compliance with other requirements as allowed in any applicable local, state, and federal requirement.(b) Credit use calculation. (1) The number of emission credits needed by the user for offsets shall be determined as provided by Chapter 116, Subchapter B of this title.(2) For emission credits used in compliance with Chapter 115 or 117 of this title, the number of emission credits needed should be determined according to the following equation plus an additional 10% to be retired as an environmental contribution. Attached Graphic
(3) For emission credits used to comply with §§ 117.123, 117.320, 117.323, 117.423, 117.1020, or 117.1220 of this title (relating to Source Cap; and System Cap), the number of emission credits needed for increasing the 30-day rolling average emission cap or maximum daily cap should be determined according to the following equation plus an additional 10% to be retired as an environmental contribution. Attached Graphic
(4) Emission credits used for compliance with any other applicable program should be determined in accordance with the requirements of that program and must contain at least 10% extra to be retired as an environmental contribution, unless otherwise specified by that program.(c) Notice of intent to use emission credits. (1) The executive director will not accept an application to use emission credits before the emission credit is available in the compliance account for the site where it will be used. If the emission credit will be used for offsets, the executive director will not accept the emission credit application before the applicable permit application is administratively complete.(A) The user shall submit a completed application at least 90 days before the start of operation for an emission credit used as offsets in a permit in accordance with Chapter 116 of this title (relating to Control of Air Pollution by Permits for New Construction or Modification).(B) The user shall submit a completed application at least 90 days before the planned use of an emission credit for compliance with the requirements of Chapter 115 or 117 of this title or other programs.(C) If the executive director approves the emission credit use, the date the application is submitted will be considered the date the emission credit is used.(2) If the executive director denies the facility or mobile source's use of emission credits, any affected person may file a motion to overturn within 60 days of the denial. Regardless of the applicability provisions of § 50.131(c)(5) of this title (relating to Purpose and Applicability), the requirements of § 50.139 of this title (relating to Motion to Overturn Executive Director's Decision) shall apply. Only an affected person may file a motion to overturn.(d) Inter-pollutant use of emission credits. With prior approval from the executive director and the United States Environmental Protection Agency, a nitrogen oxides or volatile organic compound emissions credit may be used to meet the offset requirements for the other ozone precursor if photochemical modeling demonstrates that the overall air quality and the regulatory design value in the nonattainment area of use will not be adversely affected by the substitution.30 Tex. Admin. Code § 101.306
The provisions of this §101.306 adopted to be effective January 17, 2003, 28 TexReg 83; amended to be effective October 26, 2006, 31 TexReg 8684; amended to be effective August 16, 2007, 32 TexReg 4985; Amended by Texas Register, Volume 40, Number 25, June 19, 2015, TexReg 3886, eff. 6/25/2015; Amended by Texas Register, Volume 42, Number 40, October 6, 2017, TexReg 5469, eff. 10/12/2017; Amended by Texas Register, Volume 45, Number 19, May 8, 2020, TexReg 3092, eff. 5/14/2020