Section 096-113-4 - Generation of Offset CreditsA. All offset credits must be quantifiable and calculated according to the same method and averaging time for the base case and future case. (1) For offset credits generated within the State of Maine, the base case from which to measure offset credits shall be the annual average actual emissions for any consecutive 24-month period which precedes the particular date and which is representative of normal source operation. A different time period may be used upon a determination that it is more representative of normal source operation. Actual emissions, for the purposes of quantifying offset credits, shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. To be creditable as offsets, emissions reductions made in Maine must be made on or after May 31, 1995.(2) To be creditable as offsets, emissions reductions made in states other than Maine must be made on or after November 15, 1990, and certified in accordance with CAA requirements.B. When quantifying offset credits generated by reducing actual emissions from existing sources that are exceeding emission limits, only those emission reductions below the licensed or otherwise allowable emissions for the existing source are creditable as offset credits.C. In no case shall offset credits be allowed for reductions in emissions that were required by any federally enforceable license conditions developed pursuant to 40 C.F.R. Parts 51, 52, 70, and 71, or other requirements of the Clean Air Act or other applicable federal or state law or requirement, including without limitation in achieving attainment of National Ambient Air Quality Standards or Reasonable Further Progress. If incidental emission reductions not required under the Clean Air Act or other federal or state law or requirement meet the applicable requirements of this rule for offset credits, such emission reductions may be creditable as offset credits. Emission reductions used to meet air quality attainment requirements are surplus as long as they are not otherwise relied on in an air quality-related program in the Maine State Implementation Plan (SIP), SIP-related requirements, other State air quality programs not in the SIP, a consent decree, or federal rules that focus on reducing criteria pollutants or their precursors.D. Prior to the new major source or major modification subject to this Chapter commencing operation, the offset credit generator must have made reductions in actual emissions as certified by the Department.E. Prior to the new major source or major modification commencing operation, the user of the offset credits must demonstrate to the Department that the offset credits have been certified by the Department, and shall provide other documentation and information as requested by the Department.F. In addition to the other limitations of this rule, emission reductions will qualify as offset credits only to the extent that they are in surplus of all the following at the time the application is filed: (1) Emission reductions required by state laws specifically identified in the SIP as being necessary for the State to meet Clean Air Act attainment requirements; and(2) Emission reductions already relied on for SIP planning purposes. Emission reductions that occur from a source when complying with a MACT standard may be eligible to be used as nonattainment new source review (NNSR) offset credits provided the emission reduction is not relied on for attaining and maintaining the NAAQS and for complying with the MACT standard. For example, if a source reduced a hazardous air pollutant such as methanol in order to comply with a MACT standard and also reduced other VOC that were not HAPs, the reduction in non-HAP VOCs may be eligible as a NNSR offset for VOC if the State did not rely on the reduction to attain or maintain compliance with the ozone NAAQS.
G. Emission reductions may qualify as offset credits only if they are made federally enforceable through new source review licenses issued in accordance with federally approved Maine regulations, SIP revisions, or applicable EPA-approved state regulations that reflect a reduced level of actual or allowable emissions.H. To qualify, offset credits must be either: (1) Emission reductions generated by a source that has been licensed or otherwise allowed to emit and has been actually operating and emitting the pollutant for at least two years; or(2) Offset credits previously certified for use in the licensing of a new major source or major modification which never commenced operation and whose license has been surrendered, revoked, or otherwise terminated.I. To qualify as offset credits, shutdowns or curtailments of plant production resulting in reduced emissions must meet the following conditions: (1) The source must demonstrate to the satisfaction of the Department that demand for the services or products affected by the shutdown or curtailment will not shift to other similar sources in the State that are not required to offset new emissions, such that the expected decrease in emissions would fail to occur; and(2) If the owner or operator of a licensed source subject to this Chapter plans to generate and trade offset credits, any shutdown or curtailment shall require an amendment to, surrender of, or termination of its air emission license.J. Prior to the use of VOC or NOxoffset credits, the credit generator must demonstrate to the Department that the portion of the offset credits to be used during the ozone season are generated primarily during the ozone season.K. NOxoffset credits may be granted for emission reductions which occur in an area with a NOxwaiver under section 182(f) of the Clean Air Act only upon written notification of approval from the USEPA.L. An applicant for a license for a major new source or major modification requiring emission offsets may request in its application that the Department certify emission reductions that have occurred in the State at a different facility, which no longer holds a valid air emission license, and which reductions have not already been utilized by another major new source or major modification project. Certification of these reduction credits may be requested by an applicant who is not a prior licensee of the source where the emission reductions occurred. The Department will grant such a request for credit certification in the course of its action on the application if all of the following conditions are met: (1) The reductions are associated with a formerly licensed facility which no longer holds a valid air emission license; (2) The party applying to utilize the emissions reductions has an application accepted for processing and pending with the Department for a project in Maine that would use said offset credits; (3) The emission reductions meet all of the requirements in this Chapter for determining the amount of emission reductions eligible as emission reduction credits; and(4) The emission reductions are not the subject of a pending request for certification in another application that the Department has accepted as complete for processing.M. Offset credits that the Department certified under subsection 4(L) in the course of approving a license for a major new source or major modification may not be sold or otherwise transferred; and in the event that such a license is subsequently surrendered, revoked, or otherwise terminated, such credits shall again become available for use in future licensing of major new sources or major modifications, to the same extent as previously uncertified emission reductions, in accordance with the process set forth in subsection 4(L), or otherwise used in meeting state or federal air quality requirements. Note: Information regarding emission reductions that have occurred in the State and that may be available for certification as offset credits in accordance with subsection 4(L) is available from the Department upon request.
06- 096 C.M.R. ch. 113, § 4