5 Colo. Code Regs. § 1001-31-A-III

Current through Register Vol. 47, No. 24, December 25, 2024

Section 5 CCR 1001-31-A-III - Noncompliance

III.A. In the event that an EITE stationary source fails to meet its annual emissions limitation, the EITE stationary source will be deemed in noncompliance and must surrender or obtain and surrender three (3) GHG credits for every metric ton of CO2e emitted by the EITE stationary source in excess of the annual emissions limitation and may be subject to a civil penalty or other enforcement action by the Division.

III.B. In the event that a GEMM 2 facility fails to comply with:

(i) its aggregated GHG emissions requirement for the first compliance period (calculated by aggregating a facility's GEMM 2 annual GHG emission requirements for 2024, 2025, and 2026);

(ii) its aggregated GHG emissions requirement for the second compliance period (calculated by aggregating a facility's GEMM 2 annual GHG emission requirements for 2027, 2028, and 2029); or

(iii) after 2029, its GEMM 2 annual GHG emissions requirement in any compliance year, the facility's GEMM 2 annual GHG emissions requirement will be adjusted downwards by at least two (2) times the amount, in metric tons of CO2e, by which the facility exceeded its aggregated GHG emissions requirements in either compliance period or, after 2029, its GEMM 2 annual GHG emissions requirement. The timeline required for the GEMM 2 facility to achieve the mitigation will be determined by the Division but must be no later than three (3) years after the period or year of non-compliance.

III.B.1. If a GEMM 2 facility fails to comply with its aggregated GHG emissions requirements in either compliance period or, after 2029, its GEMM 2 annual GHG emissions requirement in any compliance year, the facility must submit a GHG mitigation plan for Division review and approval by no later than December 31 of the year following the period or year of non-compliance, documenting how it will comply with the additional required GHG reductions. The GHG mitigation plan must include:

III.B.1.a. The amount by which the GEMM 2 facility exceeded the facility's aggregated GHG emissions requirement in metric tons of CO2e for the previous period or GEMM 2 annual GHG emissions requirement in metric tons of CO2e for the previous year.

III.B.1.b. The adjusted GHG emissions requirement for the mitigation period, as determined by the Division pursuant to Section III.B.

III.B.1.c. The onsite GHG reduction measure(s) being implemented to achieve the additional reduction required pursuant to Section III.B, for the mitigation period.

III.C. If the GEMM 2 facility does not achieve the applicable GEMM 2 annual GHG emissions requirement or mitigation reduction amount, the facility must take the necessary corrective actions to achieve the required reductions pursuant to this Section III, in addition to paying any civil penalties that may be assessed. The GEMM 2 facility may be deemed out of compliance for the entirety of the year and subject to daily civil penalties.

III.D. In the event that a GEMM 2 facility fails to implement the emission reduction measures as documented in the Division-approved GHG reduction plan pursuant to Part B, Section II, the GEMM 2 facility may be deemed out of compliance and may be subject to enforcement action and daily civil penalties.

III.E. If a GEMM 2 facility does not submit timely, complete, and accurate documentation to the Division pursuant to any section of Regulation Number 27, the facility may be subject to enforcement action including assessment of daily civil penalties.

III.F. Nothing in this Section III limits the enforcement powers of the Division under the Act to remedy noncompliance with Regulation Number 27, including but not limited to the Division's ability to seek additional penalties, and compel actual reductions at any manufacturing source in noncompliance.

5 CCR 1001-31-A-III

46 CR 10, May 25, 2023, effective 6/14/2023

46 CR 21, November 10, 2023, effective 12/15/2023