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DEPARTMENT OF ENVIRONMENTAL QUALITY

 
DIVISION 268
EMISSION REDUCTION CREDITS

NOTE: These rules are included in the
State of Oregon Clean Air Act Implementation Plan as adopted by the EQC under OAR
340-200-0040.
340-268-0010
Applicability and Jurisdiction
(1) This division applies to any person
who wishes to create or bank an emission reduction credit in the state.
(2) Subject to the requirements
in this division and OAR 340-200-0010(3), LRAPA is designated by the EQC to implement
the rules in this division within its area of jurisdiction.
NOTE: This rule is included in the
State of Oregon Clean Air Act Implementation Plan that EQC adopted under OAR 340-200-0040.
Stat. Auth.: ORS 468A
Stats. Implemented: ORS 468
& 468A
Hist.: DEQ 14-1999, f. &
cert. ef. 10-14-99; DEQ 6-2001, f. 6-18-01, cert. ef. 7-1-01; DEQ 7-2015, f. &
cert. ef. 4-16-15
340-268-0020
Definitions
The definitions in OAR 340-200-0020,
340-204-0010 and this rule apply to this division. If the same term is defined in
this rule and 340-200-0020 or 340-204-0010, the definition in this rule applies
to this division.
NOTE: This rule is included in the
State of Oregon Clean Air Act Implementation Plan that EQC adopted under OAR 340-200-0040.
Stat. Auth.: ORS 468.020
Stats. Implemented: ORS 468A.025
Hist.: DEQ 14-1999, f. &
cert. ef. 10-14-99; DEQ 7-2015, f. & cert. ef. 4-16-15
340-268-0030
Emission Reduction Credits
Any person who reduces emissions by
implementing more stringent controls than required by a permit or an applicable
regulation may create an emission reduction credit. Emission reduction credits must
be created and banked within two years from the time of actual emission reduction.
(1) Creating Emission Reduction
Credits. Emission reductions can be considered credits if all of the following requirements
are met:
(a) The reduction is permanent
due to continuous overcontrol, curtailment or shutdown of an existing activity or
device;
(b) The reduction is in terms
of actual emissions reduced at the source. The amount of the creditable reduction
is the difference between the contemporaneous (any consecutive 12 calendar month
period during the prior 24 calendar months) pre-reduction actual (or allowable,
whichever is less) emissions and the post-reduction allowable emissions from the
subject activity or device;
(c) The reduction is either:
(A) Enforceable by DEQ through
permit conditions or rules adopted specifically to implement the reduction that
make increases from the activity or device creating the reduction a violation of
a permit condition; or
(B) The result of a physical
design that makes such increases physically impossible.
(d) The reduction is surplus.
Emission reductions must be in addition to any emissions used to attain or maintain
AAQS in the SIP;
(e) Sources in violation
of air quality emission limitations may not create emission reduction credits from
those emissions that are or were in violation of air quality emission limitations;
(f) Hazardous emissions reductions
required to meet the MACT standards at 40 CFR part 61 and part 63, including emissions
reductions to meet the early reduction requirements of section 112(i)(5), are not
creditable as emission reduction credits for purposes of Major NSR in nonattainment
or reattainment areas. However, any emissions reductions that are in excess of or
incidental to the MACT standards are not precluded from being credited as emission
reduction credits as long as all conditions of a creditable emission reduction credit
are met.
(2) Banking of Emission Reduction
Credits.
(a) The life of emission
reduction credits may be extended through the banking process as follows:
(A) Emission reduction credits
may be banked for ten years from the time of actual emission reduction.
(B) Requests for emission
reduction credit banking must be submitted within the 2 year (24 calendar months)
contemporaneous time period immediately following the actual emission reduction.
(The actual emission reduction occurs when the airshed experiences the reduction
in emissions, not when a permit is issued or otherwise changed).
(b) Banked emission reduction
credits are protected during the banked period from rule required reduction, if
DEQ receives the emission reduction credit banking request before DEQ submits a
notice of a proposed rule or plan development action for publication in the Secretary
of State's bulletin. The EQC may reduce the amount of any banked emission reduction
credit that is protected under this section, if the EQC determines the reduction
is necessary to attain or maintain an ambient air quality standard.
(c) Emission reductions must
be in the amount of ten tons per year or more to be creditable for banking, except
as follows:
(A) In the Medford-Ashland
AQMA, PM10 emission reductions must be at least 3 tons per year.
(B) In Lane County, LRAPA
may adopt lower levels.
(C) In the Klamath Falls
nonattainment area and the Lakeview UGB, PM2.5 emission reductions must be at least
1 ton per year.
(d) Emission reduction credits
will not expire pending DEQ taking action on a timely banking request unless the
10 year period available for banking expires.
(3) Using Emission Reduction
Credits: Emission reduction credits may be used for:
(a) Netting actions within
the source that generated the credit, through a permit modification; or
(b) Offsets pursuant to the
NSR program, OAR 340 division 224.
(4) Emission reduction credits
are considered used when a complete NSR permit application is received by DEQ to
apply the emission reduction credits to netting actions within the source that generated
the credit, or to meet the offset and net air quality benefit requirements of the
NSR program under OAR 340-224-0500 though 340-224-0540.
(5) Unused Emission Reduction
Credits.
(a) Emission reduction credits
that are not used, and for which DEQ does not receive a request for banking within
the contemporaneous time period, will become unassigned emissions for purposes of
the PSEL and are no longer available for use as external offsets.
(b) Emission reduction credits
that are not used prior to the expiration date of the credit will revert to the
source that generated the credit and will be treated as unassigned emissions for
purposes of the PSEL pursuant to OAR 340-222-0055 and are no longer available for
use as external offsets.
(6) Emission Reduction Credit
(ERC) Permit:
(a) DEQ tracks ERC creation
and banking through the permitting process. The holder of ERCs must maintain either
an ACDP, Title V permit, or an ERC Permit.
(b) DEQ issues ERC Permits
for anyone who is not subject to the ACDP or Title V programs that requests an ERC
or an ERC to be banked.
(c) An ERC permit will only
contain conditions necessary to make the emission reduction enforceable and track
the credit.
(d) Requests for emission
reduction credit banking must be submitted in writing to DEQ and contain the following
documentation:
(A) A detailed description
of the activity or device controlled or shut down;
(B) Emission calculations
showing the types and amounts of actual emissions reduced, including pre-reduction
actual emission and post-reduction allowable emission calculations;
(C) The date or dates of
actual reductions;
(D) The procedure that will
render such emission reductions permanent and enforceable;
(E) Emission unit flow parameters
including but not limited to temperature, flow rate and stack height;
(F) Description of short
and long term emission reduction variability, if any.
(e) Requests for emission
reduction credit banking must be submitted to DEQ within two years (24 months) of
the actual emissions reduction. DEQ must approve or deny requests for emission reduction
credit banking before they are effective. In the case of approvals, DEQ issues a
permit to the owner or operator defining the terms of such banking. DEQ insures
the permanence and enforceability of the banked emission reductions by including
appropriate conditions in permits and, if necessary, by recommending appropriate
revisions to the SIP.
(f) DEQ provides for the
allocation of emission reduction credits in accordance with the uses specified by
the holder of the emission reduction credits. The holder of ERCs must notify DEQ
in writing when they are transferred to a new owner or site. Any use of emission
reduction credits must be compatible with local comprehensive plans, statewide planning
goals, and state laws and rules.
NOTE: This rule is included in the
State of Oregon Clean Air Act Implementation Plan that EQC adopted under OAR 340-200-0040.
Stat. Auth.: ORS 468.020, 468A.025,
468A.040, 468A.135, 468A.155 & 468A.310
Stats. Implemented: ORS 468A.025,
468A.040, 468A.135, 468A.155 & 468A.310
Hist.: DEQ 25-1981, f. &
ef. 9-8-81; DEQ 5-1983, f. & ef. 4-18-83; DEQ 27-1992, f. & cert. ef. 11-12-92;
DEQ 4-1993, f. & cert. ef. 3-10-93; DEQ 12-1993, f. & cert. ef. 9-24-93,
Renumbered from 340-020-0265; DEQ 19-1993, f. & cert. ef. 11-4-93; DEQ 14-1999,
f. & cert. ef. 10-14-99, Renumbered from 340-028-1980; DEQ 6-2001, f. 6-18-01,
cert. ef. 7-1-01; DEQ 7-2015, f. & cert. ef. 4-16-15

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