5 Colo. Code Regs. § 1001-31-C-IV

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

Section 5 CCR 1001-31-C-IV - Emission Reduction Requirement Compliance

IV.A. The EITE stationary source must submit a compliance action plan within 120 days of the Commission's approval of the GHG BAECT, energy BMPs, and GHG BAECT and energy BMP intensity rate determination that includes the EITE stationary source's plan and timeline to comply with the annual mass emission limit, and interim mass emission limit in Section IV.A.2.d. as applicable and the energy BMPs determination.

IV.A.1. The EITE stationary source may use the following emission reduction mechanisms to comply with the annual and interim emission limits:

IV.A.1.a. Actual, direct emissions reductions onsite at the EITE stationary source; or

IV.A.1.b. Actual direct GHG emission reductions submitted in the form of GHG credits awarded by the Division. In order to produce GHG credits, the emissions reductions must be real, additional, verifiable, permanent and enforceable. GHG credits will only be issued in the tracking system after emission reduction have been demonstrated; or

IV.A.1.c. Installation and utilization at the facility of a retail distributed generation or net meter renewable energy project that reduces the GHG emissions from the EITE stationary source's electrical energy use, and for which the EITE stationary source has retired Renewable Energy Credits in Colorado generated that year, which demonstrate emissions reductions to comply with Section III.A. Utilization of Renewable Energy Credits for compliance cannot exceed the annual generation of the distributed generation system and it can only be used to satisfy the five (5) percent GHG emission reduction associated with Section III.A. and shall not be used for any other component of the annual emission limitation.

IV.A.2. If the measure(s) determined to be GHG BAECT and/or energy BMPs for an emission unit also are anticipated to result in significant co-benefits, then the EITE stationary source must demonstrate in its compliance action plan that the co-benefits will be achieved through comparable reductions of the relevant harmful air pollutant(s) at the EITE stationary source. If an EITE stationary source demonstrates there are no material co-benefits from the implementation of the measure(s) determined to be GHG BAECT and/or energy BMPs, these requirements do not apply.

IV.B. Beginning no later than the third year after each audit year, EITE stationary sources must demonstrate the additional mass-based five (5) percent GHG emission reduction described in this Section V. through the annual compliance certification in Section V.A.1.

IV.C. When considering compliance options with similar or the same cost-effectiveness, the EITE entity must give increased priority to GHG reduction initiatives that would produce co-benefits to the neighboring communities surrounding the EITE stationary source.

IV.D. The Division will review the compliance action plan for approval.

IV.E. EITE stationary sources must comply with the compliance action plan once approved by the Division.

IV.F. If in any calendar year an EITE stationary source achieves reported emissions lower than the annual emissions limitation, the Division will award the EITE stationary source GHG credits equal to the difference between the annual emissions limitation and reported emissions. GHG credits will only be issued after emission reductions have been demonstrated.

IV.G. If in any calendar year an EITE stationary source fails to achieve the annual emissions limitation, the owners and operators may remedy this noncompliance by surrendering in the EITE entity's compliance account sufficient GHG credits so as to reduce the actual emissions to the EITE annual emissions limitation.

5 CCR 1001-31-C-IV

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