§ 145.306. Standard requirements.
(a) Permit requirements.
(1) The owner or operator of each CO2 budget source shall have a CO2 budget permit condition in their permit required under Chapter 127 (relating to construction, modification, reactivation and operation of sources) and shall submit to the Department the following:
(i) A complete application for a new, renewed or modified permit under § 145.323 (relating to contents of an application for a permit incorporating CO2 Budget Trading Program requirements) in accordance with the deadlines specified in § 145.322 (relating to submission of an application for a new, renewed or modified permit incorporating CO2 Budget Trading Program requirements).
(ii) Any supplemental information that the Department determines is necessary to review the permit application and issue or deny a permit, permit renewal or permit modification that includes CO2 Budget Trading Program requirements.
(2) The owner or operator of each CO2 budget source required to have a permit under Chapter 127 shall ensure that the permit incorporates the requirements of the CO2 Budget Trading Program and shall operate the CO2 budget source and each CO2 budget unit at the source in compliance with the permit.
(b) Monitoring requirements.
(1) The owner or operator and, to the extent applicable, the CO2 authorized account representative of each CO2 budget source and each CO2 budget unit at the source, shall comply with the monitoring requirements of § § 145.371—145.377 (relating to monitoring, reporting and recordkeeping requirements).
(2) The Department will use the emissions measurements recorded and reported in accordance with § § 145.371—145.377 to determine the unit’s compliance with the CO2 requirements under subsection (c).
(3) The Department will use the emissions measurements recorded and reported to the Department under this article to determine whether areas of this Commonwealth have been disproportionately impacted by increased air pollution as a result of implementation of this subchapter. The Department will publish notice of the availability of a report of the emissions measurements and the determination in the Pennsylvania Bulletin on an annual basis. The report will include the following:
(i) Baseline air emissions data from each CO2 budget unit for the calendar year prior to the year Pennsylvania becomes a participating state.
(ii) Annual emissions measurements recorded and reported to the Department from each CO2 budget unit.
(c) CO2 requirements. A CO2 budget unit shall be subject to the CO2 requirements starting on July 1, 2022, or the date on which the unit commences operation, whichever is later.
(1) For the purpose of determining compliance with paragraph (2), total tons for a 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 § § 145.371—145.377. The Department will round total CO2 emissions to the nearest whole ton, so that any fraction of a ton equal to or greater than 0.50 ton is deemed to equal 1 ton and any fraction of a ton less than 0.50 ton is deemed to equal zero tons.
(2) The owner or operator of each CO2 budget source and each CO2 budget unit at the source shall, as of the CO2 allowance transfer deadline, hold CO2 allowances available for compliance deductions under § 145.355 (relating to compliance), in the source’s compliance account, as follows:
(i) For a control period, the amount of CO2 allowances held shall be no less than the total CO2 emissions for the control period from all CO2 budget units at the source, less the CO2 allowances deducted to meet the requirements of subparagraph (ii), with respect to the previous 2 interim control periods, as determined in accordance with § § 145.351—145.358 (relating to CO2 allowance tracking system) and § § 145.371—145.377.
(ii) For an interim control period, the amount of CO2 allowances held shall be no less than the total CO2 emissions for the interim control period from all CO2 budget units at the source multiplied by 0.50, as determined in accordance with § § 145.351—145.358 and 145.371—145.377.
(3) Each ton of CO2 emitted in excess of the CO2 budget emissions limitation for a control period shall constitute a separate violation of this subchapter and the act.
(4) Each ton of excess interim emissions shall constitute a separate violation of this subchapter and the act.
(5) CO2 allowances shall be held in, deducted from, or transferred among COATS accounts in accordance with § § 145.341—145.343 (relating to CO2 allowance allocations), 145.351—145.358, 145.361—145.363 (relating to CO2 allowance transfers) and 145.397 (relating to award and recordation of CO2 offset allowances).
(6) A CO2 allowance shall not be deducted, to comply with the requirements under this subsection, for a control period or interim control period that ends prior to the year for which the CO2 allowance was allocated.
(7) A CO2 offset allowance shall not be deducted, to comply with the requirements under this subsection, beyond the applicable percent limitations in § 145.355(a)(3).
(8) A CO2 allowance is a limited authorization by the Department or a participating state to emit 1 ton of CO2 in accordance with the CO2 Budget Trading Program. No provision of the CO2 Budget Trading Program, this subchapter, an application for a new, renewed or modified permit to incorporate the requirements of the CO2 Budget Trading Program, a permit that includes the requirements of the CO2 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 the authorization.
(9) A CO2 allowance under the CO2 Budget Trading Program does not constitute a property right.
(d) Excess emissions requirements. The owner or operator of a CO2 budget source that has excess emissions in any control period or excess interim emissions for any interim control period shall do the following:
(1) Forfeit the CO2 allowances required for deduction under § 145.355(d)(1) and (2).
(2) Pay any fine, penalty or assessment or comply with any other remedy imposed under § 145.355(d)(3).
(e) Recordkeeping and reporting requirements.
(1) Except as provided in subparagraph (i), the owner or operator of the CO2 budget source and each CO2 budget unit at the source shall maintain at a central location and provide upon request by the Department the following documents for 10 years from the date the document is created. This period may be extended for cause, at any time prior to the end of 10 years, in writing by the Department.
(i) The account certificate of representation for the CO2 authorized account representative for the CO2 budget source and each CO2 budget unit at the source and all documents that demonstrate the truth of the statements in the account certificate of representation, in accordance with § 145.314 (relating to account certificate of representation). The certificate and documents shall be retained beyond the 10-year period until the documents are superseded because of the submission of a new account certificate of representation changing the CO2 authorized account representative.
(ii) The emissions monitoring information, in accordance with § § 145.371—145.377 and 40 CFR 75.57 (relating to general recordkeeping provisions).
(iii) Copies of all reports, compliance certifications and other submissions and all records made or required under the CO2 Budget Trading Program.
(iv) Copies of the documents used to complete an application for a new or modified permit that incorporates the requirements of the CO2 Budget Trading Program and any submission under the CO2 Budget Trading Program or to demonstrate compliance with the requirements of the CO2 Budget Trading Program.
(2) The CO2 authorized account representative of a CO2 budget source and each CO2 budget unit at the source shall submit the reports and compliance certifications required under this subchapter, including the requirements under § § 145.331 and 145.332 (relating to compliance certification report; and Department action on compliance certifications).
(f) Liability.
(1) Except as provided under § 127.403 (relating to permitting of sources operating lawfully without a permit), a permit revision may not excuse any violation of the requirements of this subchapter that occurs prior to the date that the revision takes effect.
(2) Any provision of this subchapter that applies to a CO2 authorized account representative shall apply to the owner or operator of the source and of the CO2 budget units at the source.
(3) Any provision of this subchapter that applies to a CO2 budget source shall also apply to the owner or operator of the source and of the CO2 budget units at the source.
(4) Any provision of this subchapter that applies to a CO2 budget unit shall also apply to the owner or operator of the unit.
(g) Effect on other authorities. No provision of this subchapter, a permit application or a permit shall be construed as exempting or excluding the owner or operator and, to the extent applicable, the CO2 authorized account representative, from compliance with any provision of the act, the Clean Air Act or the regulations promulgated under the Clean Air Act or the act.
Cross References This section cited in 25 Pa. Code § 145.302 (relating to definitions); 25 Pa. Code § 145.323 (relating to contents of an application for a permit incorporating CO2 Budget Trading Program requirements); 25 Pa. Code § 145.331 (relating to compliance certification report); 25 Pa. Code § 145.342 (relating to CO2 allowance allocations); and 25 Pa. Code § 145.355 (relating to compliance).
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