N.J. Admin. Code § 7:27C-1.4

Current through Register Vol. 56, No. 23, December 2, 2024

Section 7:27C-1.4 - General provisions

(a) The owner and operator of each CO[2] Budget source required to have an operating permit pursuant to N.J.A.C. 7:27-22shall:

1. Submit to the Department a complete application for a new, renewed, or modified operating permit under N.J.A.C. 7:27C-3.3in accordance with the deadlines specified in N.J.A.C. 7:27C-3.2; and

2. Submit in a timely manner any supplemental information that the Department determines is necessary to review the operating permit application and issue or deny an operating permit, permit renewal, or permit modification that includes CO[2] Budget Trading Program requirements.

(b) The owner and operator of each CO[2] Budget source required to have an operating permit pursuant to N.J.A.C. 7:27-22shall ensure that the operating permit incorporates the requirements of the CO[2] Budget Trading Program and shall operate the CO[2] Budget source and each CO[2] Budget unit at the source in compliance with such operating permit.

(c) The owner and operator and, to the extent applicable, the CO[2] authorized account representative of each CO[2] Budget source and each CO[2] Budget unit at the source, shall comply with the monitoring requirements of N.J.A.C. 7:27C-8.

(d) The Department will use the emissions measurements recorded and reported in accordance with N.J.A.C. 7:27C-8 to determine the unit's compliance with the CO[2] requirements under (f) below. For the purpose of determining compliance with (f) below, total tons for a control period, the initial control period, or an interim control period shall be calculated as the sum of all recorded hourly emissions (or the tonnage equivalent of the recorded hourly emissions rates) in accordance with N.J.A.C. 7:27C-8. The Department will round total CO[2] emissions to the nearest whole ton, SO[2] that any fraction of a ton equal to or greater than 0.50 tons is deemed to equal one ton and any fraction of a ton less than 0.50 tons is deemed to equal zero tons.

(e) A CO[2] Budget unit is subject to the requirements of (f) below starting on January 1, 2020, or the date on which the unit commences operation, whichever is later.

(f) The owners and operators of each CO[2] Budget source and each CO[2] Budget unit at the source shall, as of the CO[2] allowance transfer deadline, hold CO[2] allowances in the source's compliance account, available for compliance deductions under N.J.A.C. 7:27C-6.9, as follows:

1. In the case of the initial control period, the number of CO[2] allowances held shall be NO[x] less than an amount equivalent to the total CO[2] emissions for the initial control period from all CO[2] Budget units at the source;

2. In the case of a control period, the number of CO[2] allowances held shall be NO[x] less than the total CO[2] emissions for the control period from all CO[2] Budget units at the source, less the CO[2] allowances deducted to meet the requirements of (f)3 below, with respect to the previous two interim control periods, as determined in accordance with N.J.A.C. 7:27C-6 and 8; and

3. In the case of an interim control period, the number of CO[2] allowances held shall be NO[x] less than the total CO[2] emissions for the interim control period from all CO[2] Budget units at the source multiplied by 0.50, as determined in accordance with N.J.A.C. 7:27C-6 and 8.

(g) Each ton of CO[2] emitted in excess of the CO[2] Budget emissions limitation for a control period or the initial control period constitutes a separate violation of this chapter and applicable State law.

(h) Each ton of excess interim emissions constitutes a separate violation of this chapter and applicable State law.

(i) CO[2] allowances shall be held in, deducted from, or transferred among COATS accounts in accordance with N.J.A.C. 7:27C-5, 6, and 7.

(j) A CO[2] allowance shall not be deducted, in order to comply with (f) above, for a control period that ends prior to the year for which the CO[2] allowance was allocated.

(k) A COoffset allowance shall not be deducted, in order to comply with (f) above, beyond the applicable percent limitations at N.J.A.C. 7:27C-6.9(a)3.

(l) A CO[2] allowance is a limited authorization by the Department or a participating state to emit one ton of CO[2] in accordance with the CO[2] Budget Trading Program. NO[x] provision of the CO[2] Budget Trading Program, this chapter, an application for a new, renewed, or modified operating permit to incorporate the requirements of the CO[2] Budget Trading Program, an operating permit that includes the requirements of the CO[2] Budget Trading Program, or any provision of law shall be construed to limit the authority of the Department or a participating state to terminate or limit such authorization.

(m) A CO[2] allowance under the CO[2] Budget Trading Program does not constitute a property right.

(n) The owners and operators of a CO[2] Budget source that has excess emissions in any control period or the initial control period or excess interim emissions in any interim control period, shall:

1. Forfeit the CO[2] allowances required for deduction under N.J.A.C. 7:27C-6.9(e);

2. Not use any CO[2] offset allowances to cover any part of such excess emissions; and

3. Pay any fine, penalty, or assessment or comply with any other remedy imposed under N.J.A.C. 7:27C-6.9(f).

(o) Except as provided under (o)1 below, the owners and operators of the CO[2] Budget source and each CO[2] Budget unit at the source shall keep on site at the source each of the documents set forth in (o)1 through 4 below for a period of 10 years from the date the document is created. The Department may at any time prior to the end of the 10-year period extend the 10-year period in writing, if it determines that retention of the documents beyond the 10-year period is necessary to determine compliance with the requirements of this chapter:

1. The account certificate of representation for the CO[2] authorized account representative for the CO[2] Budget source and each CO[2] Budget unit at the source and all documents that demonstrate the truth of the statements in the account certificate of representation, in accordance with N.J.A.C. 7:27C-2.4, provided that the certificate and documents shall be retained on site at the source beyond such 10-year period until such documents are superseded by a newly submitted account certificate of representation changing the CO[2] authorized account representative;

2. All emissions monitoring information, in accordance with N.J.A.C. 7:27C-8 and 40 CFR 75.57;

3. Copies of all reports, compliance certifications, and other submissions, and all records made or required under the CO[2] Budget Trading Program; and

4. Copies of all documents used to complete an application for a new or modified operating permit that incorporates the requirements of the CO[2] Budget Trading Program and any other submission under the CO[2] Budget Trading Program or to demonstrate compliance with the requirements of the CO[2] Budget Trading Program.

(p) The CO[2] authorized account representative of a CO[2] Budget source and each CO[2] Budget unit at the source shall submit the reports and compliance certifications required under this chapter, including the requirements at N.J.A.C. 7:27C-4.

(q) A renewal or modification of the operating permit of a CO[2] Budget source will not cure a violation of the requirements of this chapter if that renewal or modification is effective after the violation occurs.

(r) Each provision of this chapter that applies to a CO[2] Budget source or to the source's CO[2] authorized account representative also applies to the owners and operators of such source and of each CO[2] Budget units at the source.

(s) Each provision of this chapter that applies to a CO[2] Budget unit or to the unit's CO[2] authorized account representative also applies to the owners and operators of such unit.

(t) NO[x] provision of the CO[2] Budget Trading Program, this chapter, an application for a new, renewed, or modified operating permit to incorporate the requirements of the CO[2] Budget Trading Program, or an operating permit that includes the requirements of the CO[2] Budget Trading Program, shall be construed as exempting or excluding the owners and operators and, to the extent applicable, the CO[2] authorized account representative, from compliance with any other provisions of applicable State or Federal law, rules, or regulations.

N.J. Admin. Code § 7:27C-1.4

Adopted by 51 N.J.R. 992(a), effective 6/17/2019