N.M. Admin. Code § 20.11.46.14

Current through Register Vol. 35, No. 23, December 10, 2024

Section 20.11.46.14 - ALLOWANCE ALLOCATIONS

A. The tracking system administrator shall record the allowances for each WEB source in the compliance account for a WEB source once the allowances are allocated by the department under Section C1 of the Section 309 Regional Haze StateImplementation Plan Element: Albuquerque - Bernalillo County, New Mexico. If applicable, the tracking system administrator shall also record a portion of the SO₂ allowances in a WEB source's special reserve compliance account to account for any allowances to be held by the source that conducts monitoring in accordance with Paragraph (2) of Subsection A of 20.11.46.16 NMAC. Under no circumstances shall allocations be made that would exceed the allocations available.

B. The tracking system administrator shall assign a serial number to each allowance in accordance with Section C1.2 of the Section 309 Regional Haze StateImplementation Plan Element: Albuquerque - Bernalillo County, New Mexico.

C. All allowances shall be allocated, recorded, transferred, or used as whole allowances. To determine the number of whole allowances, the number of allowances shall be rounded down for decimals less than 0.50 and rounded up for decimals of 0.50 or greater.

D. Anallowance is not a property right, and is a limited authorization to emit one ton of SO₂ valid only for the purpose of meeting the requirements of 20.11.46 NMAC. No provision of this WEB trading program or other law should be construed to limit the authority of the United States or the department to terminate or limit such authorization.

E. Early reduction bonus allocation: Any non-utility WEB source that installs new control technology and that, between 2008 and the program trigger year, reduces its permitted annual SO₂ emissions to a level that is below the floor level allocation established for that source in Section C1 of the Section 309 Regional Haze StateImplementation Plan Element: Albuquerque - Bernalillo County, New Mexico, or any utility that reduces its permitted annual SO₂ emissions to a level that is below best available control technology (BACT), may apply to the department for an early reduction bonus allocation. The bonus allocation shall be available for reductions that occur between 2008 and the program trigger year. The application shall be submitted no later than 90 days after the program trigger date. Any WEB source that applies and receives early reduction bonus allocations shall retain the records referenced below for a minimum of five years after the early reduction bonus allowance is certified in accordance with Section C1.1(a)(3) of the Section 309 Regional Haze StateImplementation Plan Element: Albuquerque - Bernalillo County, New Mexico . The application for an early reduction bonus allocation shall contain the following information:

(1) copies of all permits or other enforceable documents that include annual SO₂ emissions limits for the WEB source during the period the WEB source qualifies for an early reduction credit; and such permits or enforceable documents shall require monitoring for SO₂ emissions that meets the requirements in Paragraphs (1) and (3) of Subsection A of 20.11.46.16 NMAC and monitoring provisions that were in effect one year prior to the beginning of the credit generating period;

(2) Reserved;

(3) demonstration that the floor level established for the source in accordance with Section C1 of the implementation plan element was calculated using data that are consistent with the new monitoring methodology under Paragraph (1) of Subsection A of 20.11.46.16 NMAC; and if new monitoring techniques change the floor level for the source, then a demonstration of the new floor level based on new monitoring techniques shall be included in the application.

F. Request for allowances for new WEB sources or modified WEB sources.

(1) A new WEB source may apply to the department for an allocation from the new source set-aside, as outlined in Section C1.3 of the Section 309 Regional Haze StateImplementation Plan Element: Albuquerque - Bernalillo County, New Mexico. Under no circumstances shall allocations be made that would exceed the allocations available.

(a) A new WEB source is eligible for an annual floor allocation equal to the lower of the permitted annual SO₂ emission limit for that source, or SO₂ annual emissions calculated based on a level of control equivalent to BACT and assuming 100% utilization of the WEB source, beginning of the first full calendar year of operation.

(b) Reserved

(2) An existing WEB source that has increased production capacity through a permitted change in operations under 20.11.41 NMAC, 20.11.60 NMAC or 20.11.61 NMAC, may apply for an allocation from the new source set-aside, as outlined in the Section 309 Regional Haze StateImplementation Plan Element: Albuquerque - Bernalillo County, New Mexico. An existing WEB source is eligible for an annual allocation equal to:

(a) the permitted annual SO₂ emissions limit for a new unit; or

(b) the permitted annual SO₂ emission increase for the WEB source due to the replacement of an existing unit with a new unit or the modification of an existing unit that increased production capacity of the WEB source.

(3) A source that has received a retired source exemption under Subsection D of 20.11.46.11 NMAC is not eligible for an allocation from the new source set-aside.

(4) The application for an allocation from the new source set-aside shall contain the following information:

(a) for an existing WEB source, documentation that shows the permitted production capacity of the source before and after the new permit;

(b) for a new WEB source or a new unit, documentation of the actual date of the commencement of operation and a copy of the permit.

N.M. Admin. Code § 20.11.46.14

20.11.46.14 NMAC - N, 12/31/03; A, 9/15/08; A, 5/16/11