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west virginia department of environmental protection
west virginia department of environmental protection
west virginia department of environmental protection

Emission Trading

Overview

The Emission Trading Program, pursuant to 45CSR28, "Air Pollutant Emissions Banking and Trading", began in August 2000 and trades in all criteria pollutants except ozone. This rule provides for a voluntary open-market emission trading program. Sources that produce more cost effective pollution control techniques and over-comply with state and federal air standards can generate Emission Reduction Credits (ERCs) and market them to sources with high costs of compliance so they may realize a cheaper compliance option that achieves equivalent or greater overall emission reductions on a statewide basis. While providing incentives to make progress toward the attainment or maintenance of air quality standards, 45CSR28 has provisions that ensure no increase in actual emissions of hazardous air pollutants (HAPs) and that act as safeguards to protect human health, welfare and the environment.

Notice: A request had been submitted to the U.S. EPA to revise the West Virginia State Implementation Plan (SIP) to include West Virginia Legislative Rule 45CSR28 in 2004. In April 2012, U.S. EPA returned the SIP without acting on it. Due to EPA's action, 45CSR28 is "State-Enforceable Only".

From this page, you will have access to pages of information regarding the Division of Air Quality's Emission Trading Program, pursuant to 45CSR28, "Air Pollutant Emissions Banking and Trading", including general guidance, emission trading forms, instruction, program updates and the emission trading registry.

See Also

Contact Us

Robert "RA" Mullins
West Virginia Department of Environmental Protection
Division of Air Quality
601 57th Street, SE
Charleston, WV 25304
Phone: (304) 926-0499 x41286
Email: Robert.A.Mullins@wv.gov

Program Overview

The purpose of 45CSR28, Air Pollutant Emissions Banking and Trading, is to establish a voluntary statewide air pollutant emissions trading program which provides incentives to make progress toward the following goals:

  • Attainment or maintenance of air quality standards

  • Operating with safeguards to ensure the reduction or prevention of hazardous air pollutants (HAPs)

  • Protecting human health, welfare and the environment

The 1990 Clean Air Act Amendments (CAAA) encourage the use of market-based approaches, including emission trading, to assist in attaining and maintaining the National Ambient Air Quality Standards (NAAQS) for all criteria pollutants. Open-Market Air Emission Trading is one of the U.S. Environmental Protection Agency's (USEPA) reinvention activities based on using market incentives to help the environment and the economy. EPA describes the emission trading program concept as the following:

Emissions trading is a way of reducing pollutant emissions to the environment by applying pollution reduction measures at the places where the reductions are the most cost effective. A facility can avoid costly compliance measures by reducing emissions at points where it is most cost effective to do so, rather than apply controls where costs are more expensive, so long as equivalent or greater reductions are made.

Sources that produce more cost effective pollution control techniques and which over-comply with state and federal air standards can generate Emission Reduction Credits (ERCs) and market them to sources with high costs of compliance so that they may realize a cheaper compliance option that achieves equivalent or greater overall emission reductions on a statewide basis. Ten percent (10%) of any ERCs registered must be retired as a benefit to the environment.

Operating an emissions trading program provides the Division of Air Quality with another mechanism to implement the federal NAAQS while maximizing flexibility and cost effectiveness. NAAQS are established for all of the criteria pollutants: particulate matter with an aerodynamic diameter less than or equal to 10 micrometers (PM10), sulfur dioxide (SO2), nitrogen oxides (NOx) expressed as nitrogen dioxide (NO2), carbon monixide (CO), ozone expressed as volatile organic compound (VOC) precursors, and lead (Pb).

DAQ's Emission Trading Program pursuant to 45CSR28 provides for the generation, trade and use of ERCs for VOCs as a class of compounds, oxide of nitrogen as an ozone precursor, and all criteria pollutants, excluding ozone. ERCs for one pollutant shall not be used to allow overages for another pollutant.

ERCs are discrete quantities of actual emissions expressed in tons of pollutant reduced during a specified calendar year or ozone season (for NOx and VOCs), and which are entered into the Emission Trading Registry. ERCs are purchased and used in discrete amounts for specific uses. When the purchased quantity of ERCs are used up to cover the particular overage, additional ERCs must be purchased in order to continue emitting in excess of the underlying applicable requirement. In order to continue to operate continuously, a source choosing to use ERCs should make provisions to either obtain additional ERCs before the purchased amount is depleted, or to comply with the underlying applicable requirements without the use of ERCs.

As recognized by EPA, when functioning with the safeguards required by rule, an emissions trading program can encourage sources to accomplish the following:

  • Find less expensive methods to reduce emissions
  • Meet emissions reductions targets earlier than required
  • Go beyond emissions reductions targets
  • Develop new technologies for reducing emissions
  • Develop and implement new pollution prevention strategies
  • Develop more accurate means for measuring emissions
  • Minimize the adverse health and environmental effects on communities of concern
  • Consider the environmental effects of emissions and the cost to society when making business decisions

Improving Air Quality with Economic Incentive Programs (EPA-452/R-01-001) contains EPA's final January 2001 policy on such discretionary economic incentive programs (EIPs) as open-market emissions trading. In addition to EPA guidelines, DAQ's implementation of an emissions banking and trading program is based on §§22-5-18 of the West Virginia State Code.

Status

While 45CSR28 became effective on August 31, 2000, this rule has not yet been approved by EPA as a part of the state implementation plan (SIP) in West Virginia. While sources may use this program to bank, trade and use ERCs, all such activities are at the source's own risk until final EPA SIP approval of 45CSR28. Implementation of the Emission Trading Program before EPA approves it, and use of ERCs associated with the program, instead of directly complying with SIP-approved requirements, may result in EPA taking enforcement action against participating sources for failing to comply with their SIP-approved requirements. Additionally, citizens may sue sources, state agencies or federal agencies who participate in an unapproved Emission Trading Program for failing to properly comply with, enforce or oversee, respectively the SIP-approved requirements.

Inter-sector use of emission reduction credits among mobile sources, stationary sources and area sources may occur, to the extent allowed by rule and the federal clean air act. However, DAQ's Emission Trading Program is initially focusing on stationary source generation, trading and use of ERCs.

 

Basic Data Needs

Before a state can creditably allow the use of banked ERCs, the state must collect and maintain information on their ERCs, including the name of the source that generated the ERCs, the quantity of ERCs generated by this source, the specific action that created the ERCs (e.g. a shutdown of a unit, process change, add-on controls), the date that the ERCs were generated, and enough other information to determine the creditability of the ERCs. Such a level of information is necessary to prevent the introduction of inaccurate data into the air quality management process, which may lead to endangering the State's ability to meet the other requirements of the CAAA, including the primary and secondary NAAQS. Inaccurate data can also lead to counterfeit credits within the registry, that would subsequently expose both the generator and user, along with any traders, to enforcement action.

It is important to note that while high quality data is required to participate in this voluntary program, this affords both a means to ensure protection of WV's SIP (which in turn allows DAQ to remain the delegated and approved implementing authority for state and federal air pollution programs), as well as to protect the economic investment of the sources who use this program.

 
 

Quantification Protocols

An integral concept of the Emission Trading program is the "quantification protocol." The methodology used to quantify emissions and emissions rates for the purpose of determining the emission baseline, ERCs to be generated, and ERCs to be used must meet certain criteria, including the use of the most representative, accurate and reliable process and emission data available for the source, process or process equipment. Where required by an applicable requirement, or where such measurement is practicable and reasonable, continuous emissions monitoring, or other direct measurement, parametric monitoring or other surrogates for the measurement of emissions must be used.

 
 

ERC Generation

Before ERCs can be used by a source, they must first be generated by another source and listed in the registry. While ERCs to be generated in the future may be registered, use of such ERCs must be after the ERCs are generated (not before).

There are many ways ERCs may be generated under the Program. Several acceptable emission reduction measures include the following:

  • Installation or modification of air pollution control equipment
  • Modification of process or process equipment
  • Reformulation of fuels, raw materials or products
  • Implementation of energy conservation programs
  • Implementation of operational changes
  • Implementation of pollution prevention programs
  • Curtailment or shutdown of a source, process or process equipment
  • Implementation of area and mobile source controls
  • Early compliance with future emission reduction requirements

In order to be considered to be creditable under the Program, all emission reductions must be the following:

  • Real, in that all emission reductions have actually occured
  • Surplus, in that reductions are not required by any applicable requirements
  • Quantifiable, in that all reductions can be measured and are replicable
  • Enforceable, in that they can be enforced by both DAQ and EPA
  • Permanent, in that the reductions were continuous during the time the ERCs were generated

All sources proposing to generate ERCs under the Program must be included in WV's Emission Inventory. Only emissions reductions that have occurred after January 1, 1991, are creditable under the Program. Ten percent (10%) of any ERCs registered must be retired as a benefit to the environment. ERCs have a 10-year life after the year of generation. ERCs that are not used before they expire are retired by the state as an environmental benefit.

ERCs Generated via Shutdowns

All sources generating emissions reductions via shutdown between January 1, 1991, and the August 31, 2000, effective date of 45CSR28 were required to notify the DAQ of their intent to register these credits within sixty days (60) of the rule effective date (October 30, 2000). Fifty percent (50) of all such ERCs generated via shutdowns prior to the rule effective date of Ausut 31, 2000, must be retired from future use.

Shutdown credits cannot be generated from load-shifting activities that simply transfer operations and emissions to another location.

 
 

ERC Trade

An ERC must be generated and procured before it may be traded or used. An ERC within the registry may be traded or transferred in whole or in part. Third-party traders, as well as ERC generators and end-users, are obligated to ensure and certify to the accuracy of the ERCs being traded or transferred.

ERC Use

To ensure that the Program is used in a manner consistent with attainment and maintenance of NAAQS and state and federal requirements, ERCs may not be used to avoid or comply with the following requirements:

  • New Source Performance Standards (NSPS)
  • National Emission Standards for Hazardous Air Pollutants (NESHAPs)
  • Maximum Achievable Control Technology (MACT)
  • Best Available Technology (BAT)
  • Lowest Achievable Emission Rate (LAER)
  • Synthetic Minor Permits/ Natural Minor Sources: Such sources may not use ERCs to exceed major source or major modification thresholds without following the proper permit and rule requirements. No "temporary major sources" or "temporary major modifications" are allowed.
  • ERCs may not be used to avoid the requirements to obtain a permit under the provisions of 45CSR13, 45CSR14, 45CSR19 and 45CSR30

Additionally, ERC use may not result in an actual increase of any individual HAP at a facility (e.g., no actual emissions increase of any HAP may result from the use of VOC or PM10 ERCs that may contain HAPs). Further, HAPs are prohibited from being traded within the 45CSR28 program.

ERCs may be used to ensure compliance with certain applicable requirements, provide operational flexibility and promote economic growth. Several potential uses under the program include the following:

  • Offsets for major new or modified sources in nonattainment areas (as allowed by 45CSR10)
  • Delayed or alternative compliance with RACT requirements
  • Compliance with certain air permit or rule requirements
  • Operational flexibility
  • Temporary increases in emissions below major source or major modification thresholds
  • Compliance margin" A source may purchase excess ERCs in advance for use to ensure compliance
  • The state could purchase and retire ERCs to assure attainment and maintenance of NAAQS
  • State agencies could promote economic development by purchasing and donating ERCs to businesses to reduce the offset requirement burdens
  • Purchase by environmental groups or others to improve air quality
  • As a Supplemental Environmental Project (SEP) component to mitigate enforcement action
 
 

All ERCs not used within ten (10) years of generation will be retired as a benefit to the environment. Safeguards built into 45CSR28 (such as for data collection and accuracy, recordkeeping, etc.) protect sources using ERCs while adding operational flexibilty. All ERCs must be held in advance of actual use and all appropritate notifications required by rule must be met.

A key use of ERCs in WV in the near-term is likely to be for meeting state reasonably available control technology (RACT) and SIP requirements such as in 45CSR6, 45CSR7, 45CSR10 and 45CSR21. Emission offsets resulting from permanent shutdowns as required by lowest achievable emission rate (LAER) standards may be used in conjunction with data in the registry to the extent allowed by 45CSR19.

In addition to using ERCs to meet state RACT and SIP requirements, another potential use of ERCs that can provide the regulated community with enhanced facility operating flexibility is as a compliance margin. Such ERCs may be used as a contingency to counterbalance "unplanned" emission excursions over permitted limits. Examples of such "unplanned" emission exceedances can result from unexpected changes in process operations, steam or electrical output requirements or malfunction of pollution control devices, or inconsistencies in raw material or fuel content. While persistent exceedances would be dealt with via the enforcement route, occassional excursions from permitting limits may be eligible for using ERCs. Although holding ERCs to provide a compliance margin for "unplanned" emission excursions is a potential use, as with all ERCs, such credits must be held in advance of use. Therefore, the source must be able to anticipate the proposed ERC use with enough specificity to demonstrate that any uses would neet the rule requirements.

Air quality analyses employing procedures approved by the Director must be supplied by the applicant if a proposed ERC use will result in actual emissions or overages equivalent to the amounts set forth in 45CSR§28-4.1. If such air quality analyses involves air dispersion modeling, the standards and procedures set forth in EPA's Guidance on Air Quality Models (GAQM) found at 40CFR51, Appendix W, are to be used. Air dispersion modeling submittals are to be based on a protocol previously approved by DAQ.

ERCs used in an attainment area must not cause a violation of a NAAQS, a prevention of significant deterioration (PSD) increment, or an applicable attainment area maintenance plan. The use of ERCs in a nonattainment area must result in emissions reductions consistent with the requirements for reasonable further progress (RFP) for the nonattainment area and the attainment demonstration specified in the SIP.

Notice Submittal and Review

A source or person must submit a notice for the generation of emission reductions in order to register them as ERCs. All notices must be accompanied by a certification that all information contained in the notice is true, accurate and complete.

The DAQ has sixty (60) days to review a notice and make a completeness determination. If the notice is deemed to be complete, then the registering source is notified and a fee invoice is sent to the source. ERCs are registered upon receipt of the fee. At the time of registration, DAQ will permanently retire ten (10) percent of all ERCs to provide for an air quality benefit.

A source must also submit a notice and certification to DAQ in order to use or trade ERCs. Again DAQ has sixty (60) days to review a notice and make a completeness determination. If these are deemed complete, then the registering source is notified and the use is entered into the registry. The methods used and the operational changes made to generate or use ERCs become legally enforceable operating requirements when the DAQ makes a written determination of completeness.

An application to use a new or alternate quantification protocol must be submitted to the DAQ and US EPA Region III at least thirty (30) days PRIOR to submission of a notice of generation or use of ERCs if an exisiting federally approved emission monitoring and quantification protocol is not proposed for use. Concurrent with submittal of this application to the DAQ, a copy must be submitted to US EPA Region III.

45CSR28 requires that anyone who decides to participate in the Emission Trading Program keep records of ERC generation, trades and uses. Sufficient monitoring, recordkeeping, reporting and testing for all reductions or uses must be kept in order to meet the rule requirement for enforceable ERCs, as well as for underlying applicable requirements. All prospective ERCs to be generated must be corrected with the DAQ as necessary immediately following the period of actual ERC generations. Similarly, all ERCs registered for use are allowed a period of time, not to exceed sixty (60) days, from the end of the use period specified to notify the DAQ of any unused ERCs.

The methods used, or operational changes made to create ERCs for which a complete notice and certification is submitted to DAQ become legally enforceable operating requirements upon the start date of the period of ERC generation specified in the complete notice. These continue to be legally enforceable operating requirements throughout the period of ERC generation. Similarly, the methods used, operational changes made, and maximum short-term emission rates established to accommodate the use of ERCs for which a complete notice has been submitted to DAQ become legally enforceable operating requirements upon the effective date of the notice of completeness issued by DAQ, or the beginning date of the ERC use period specified in the complete notice. These continue to be legally enforceable operating requirements throughout the period of ERC use.

Program Registry

Information on the generation and use of ERCs is contained in the publicly available Emission Trading Registry. The Registry includes the following information:

  • The amount of ERCs that have been generated, used or retired, by pollutant
  • Where and by whom the ERCs were generated or used
  • How the ERCs were generated or how the ERCs will be used
  • Contact person at facility

Further Information

If you have questions regarding the DAQ's Emission Trading Program, or if you are interested in participating, further information may be found in the rule itself (45CSR28) as well as in the various forms and flowcharts developed for implementation.

Please note that should any inconsistencies between program guidance and the rule exist, the rule governs.

Program Guidance

The provided guidance documents have been created to assist participants in completing the required trading notices and application to use a new or alternate qualitification protocol.  

 
 
 

Forms

Program participants must submit notification to the DAQ for review prior to generating, using or trading emission reduction credits (ERCs), or using a new or alternate quantification protocol. There are five (5) separate notices that may be used under the Emission Trading Program. DAQ has sixty (60) days to complete a review and respond to the applicant prior to registering the generation, transfer or use of ERCs on the Emission Trading Registry.

However, DAQ must approve the use of any new or alternate quantification protocol prior to its use to quantify emissions. These forms must be submitted at least thirty (30) days PRIOR to a Notice of ERC Generation or a Notice of ERC Use.  

Emission Trading notice forms for the generation, use and trading of ERCs, and emission monitoring and quantification protocols are now available. These forms are downloadable from the table below, and instructions for completing the forms are also available on the Program Guidance page.

 
 

Form Downloads

Registration Fee

According to 45CSR28-14.6 the director has established a registration fee of six dollars ($6.00) per ton for each pollutant registered.  

 
 

Program Regis​try

Activity By Company

Bayer Material Science, LLC; New Martinsville Plant
  • Source ID: 051-00009
  • Series Number: 05100009 N 01
  • City: New Martinsville
  • County: Marshall
  • Attainment Status: Attainment
  • Strategy: Shutdown
  • Pollutant: NOx
  • Non-Ozone Season: 3.07
  • Ozone Season: 2.87
  • Expiration Year: 10/5/2017
  • Period Start: 1/1/2005
  • Period End: 12/31/2006
  • Source Description: Reformer Unit was permanently shut down on 10/5/2007.
  • Activity Summary: These NOx emission reductions were generated by Bayer as a result of permanently shutting down reformer units at the New Martinsville Plant. The reformer units were permanently shut down October 5, 2007, and shall be dismantled shortly. Baseline emission levels were established from 2005 to 2006. Baseline emissions were calculated by multiplying the fuel usage (combines total of FG1 and FG2 by AP-42 emission factor for NOx, the resulting number was decreased by 60% to account for the bias. ERCs were reduced by 10% according to 45CSR28. Bayer voided construction permit R13-2649 for the reformer units.

Cytec Industries, Inc.
  • Source ID: 073-00003
  • Series Number: 07300003 2005 S 01
  • City: Willow Island
  • County: Pleasants
  • Attainment Status: Attainment
  • Strategy: Replacement
  • Pollutant: SO2
  • Non-Ozone Season: 1,621.35
  • Ozone Season: N/A
  • Expiration Year: 12/31/2014
  • Period Start: 1/1/2003
  • Period End: 12/31/2004
  • Source Description: Replaced 2 coal-fired and 1 gas-fired boiler with 2 new gas-fired or fuel oil-fired boilers which resulted in the ERC credit generation.
  • Activity Summary: The SO2 emission reductions were generated by Cytec as a result of replacing 2 coal-fired and 1 gas-fired boilers with 2 new gas/fuel oil-fired boilers which resulted in ERC credit generation at the Willow Island Plant. Two old coal-fired boilers were permanently removed on September 1, 2005, and one old gas-fired boiler was permanently removed on November 1, 2005. Baseline emission levels were established from 2003 to 2004. Baseline emissions were calculated by multiplying stack test derived emission factors for SO2 emissions by coal usage and subtracting the estimated SO2 emissions from new gas/fuel oil-fired boilers. SO2 emissions for new boilers were estimated by using AP-42 factor, the resulting number was increased by 50% to account for the bias. ERCs were reduced by 10% according to 45CSR28. Cytec obtained permit R13-2560C to install the 2 new gas/fuel oil-fired boilers to replace the old boilers. The old boilers were shut down in September and November 2005. The old boilers have been permanently removed from service and will be dismantled in the future.

Contact Information
Source ID Series Number Company Name Contact Phone Address
051-00009 05100009 2007 N 01 Bayer Material Science, LLC; New Martinsville Plant Mary Ann Henderson, Manager Regulatory Affairs 304-451-2431 State Route 2 North, New Martinsville, WV 26155-0500
073-00003 07300003 2005 S 01 Cytec Industries, Inc.; Willow Island Plant Robert W. Porter, Site Manager 304-665-2422 #1 Heilman Avenue, Willow Island, WV 26134
003-00008 00300008 2002 N 01 A Virginia Electric & Power Company Robert Bisha, Director - Environmental Business Support 804-273-3010 5000 Dominion Blvd., Glen Allen, VA 23060
003-00008 00300008 2002 N 01 B CPV Warran, LLC Ghris Ganley, Project Manager 240-723-2337 8403 Colesville Road Suite 915, Silver Springs, MD 20910

Transfer/Trade
Source ID Series Number Transferor/Seller Transferee/Buyer Date of Transfer Transfer Amount
003-00008 00300008 2002 N 01 A CPV Warren, LLC Virginia Electric & Power Co. 5/22/2008 175 tons of NOx
003-00008 00300008 2002 N 01 World Kitchen, Inc. CPV Warran, LLC 3/27/2008 251.1 tons of NOx

Expired
Source ID Series Number Owner Date of Expiration Expired Amount
003-00008 00300008 2002 N 01B CPV Warran, LLC 1/1/2012 76.1 tons of NOx

Retirement
Source ID Series Number Company Name Date of Retirement Retirement Amount
003-00008 00300008 2002 N 01 A Virginia Electric & Power Co. 4/8/2011 175 tons of NOx
023-00014 02300014 2012 N 01* Virginia Electric & Power Co. (VEPCO) 9/1/2012 1267 tons of NOx
023-00014 02300014 2012 S 01* Virginia Electric & Power Co. 9/1/212 913 tons of SO2

* These NOx and SO2 emission reductions were generated by VEPCO through permanent shutdown of their power plant at Bayard. NOx and SO2 were emitted primarily from two coal refuse fired boilers which were shut down. Baseline emissions were obtained by CEMs. ERC's were reduced by 10% per 45CSR28-11.1.a. Since the reductions were due to a shutdown, all of the emissions included in the baseline emissions levels were assumed to be reduced. All the associated permits are null and void.  

Program Evaluations

45CSR28, Air Pollutant Emissions Banking and Trading, contains provisions in Section 16 requiring the Director to conduct, or cause to be conducted, an evaluation of the emission trading program established under the provisions of this rule. The evaluation shall be conducted every three (3) years, or more frequently if deemed necessary by the Director, to make all of the following emission trading program assessments:

  • Whether the program is consistent with the maintenance of national ambient air quality standards and has resulted in emission reductions consistent with reasonable further progress towards attainment and maintenance of national ambient air quality standards. 45CSR§28-16.1.a.
  • Whether requirements for monitoring, recordkeeping, reporting, and enforcement have resulted in a sufficiently high level of compliance. 45CSR§28-16.1.b.
  • Whether the program has caused any localized adverse effects to the public health, safety, welfare or to the environment, including any disproportionate air quality impacts. This assessment shall include an analysis of the effects of emission trading on the emissions and impacts of toxic or hazardous air pollutant emissions. 45CSR§28-16.1.c.
  • Whether the program is achieving reductions across a spectrum of sources, including area and mobile sources. 45CSR§28-16.1.d.
  • Whether provisions for conducting audits of emission reduction credit transactions have resulted in a sufficient number of audits being conducted across a spectrum of sources. 45CSR§28-16.1.e.

45CSR28 Program Evaluations By Year

2024

Evaluation Period: August 15, 2021 - August 14, 2024  

Evaluation Summary: Since the last evaluation in 2021, there have been no new Emission Reduction Credits (ERCs) generated. There are currently no ERCs in the registry since all previously generated ERCs expired or have been retired.  

45CSR28, “Air Pollutant Emissions Banking and Trading,” contains provisions in Section 16 requiring the Director to conduct, or cause to be conducted, an evaluation of the emission trading program established under the provisions of this rule. The evaluation shall be conducted every three (3) years, or more frequently if deemed necessary by the Director, to make all of the following emission trading program assessments:

  • Whether the program is consistent with the maintenance of national ambient air quality standards and has resulted in emission reductions consistent with reasonable further progress towards attainment and maintenance of national ambient air quality standards. 45CSR§28-16.1.a.

  • Whether requirements for monitoring, recordkeeping, reporting, and enforcement have resulted in a sufficiently high level of compliance. 45CSR§28-16.1.b.

  • Whether the program has caused any localized adverse effects to the public health, safety, welfare or to the environment, including any disproportionate air quality impacts. This assessment shall include an analysis of the effects of emission trading on the emissions and impacts of toxic or hazardous air pollutant emissions. 45CSR§28-16.1.c.

  • Whether the program is achieving reductions across a spectrum of sources, including area and mobile sources. 45CSR§28-16.1.d.

  • Whether provisions for conducting audits of emission reduction credit transactions have resulted in a sufficient number of audits being conducted across a spectrum of sources. 45CSR§28-16.1.e.

 
 

Evaluation

Since the last evaluation in 2021, there have been no new Emission Reduction Credits (ERCs) generated. There are currently no ERCs in the registry since all previously generated ERCs expired or have been retired.

As of this date no ERCs have been used. Figure 1 is a table showing ERC retirement and expiration as of this date.

On June 16, 2004 WVDEP submitted a 45CSR28 SIP (State Implementation Plan) package to USEPA for approval and incorporation into the West Virginia SIP. USEPA returned the SIP request to WVDEP on June 9, 2009 without acting on it.

On October 16, 2010, Braskem (Facility I.D. No. 099-00010) applied for 280 tons of SO 2 ERC for shutting down a coal fired boiler at their Neal plant. The emission quantification protocol has to be approved by WVDEP and USEPA. WVDEP is still awaiting a reply from USEPA on approval of the emission quantification protocol.

Figure 2 is a summary of WVDEP’s Emissions Banking and Trading Program to date.

Retirement
Source ID Series Number Owner Date of Retirement Retirement Amount
003-00008 00300008 2002 N 01A Virginia Electric and Power Co. 4/8/2011 175 tons of NOx
Expired
Source ID Series Number Owner Date of Expiration Expired Amount
003-00008 00300008 2002 N 01 B CPV Warren, LLC 01/01/2012 76.1 tons of NOx
073-00003 07300003 2005 S 01 Cytec Willow Island 12/31/2014 1621.35 tons of SO2
051-00009 05100009 2007 N 01 Bayer 10/5/2017 5.94 tons of NOx
Figure 1: ERC retirement and expiration
Summary of WVDEP’s Emissions Banking and Trading Program to Date (Tons)
Pollutant Total Tons Reduced Retired to Benefit Air Quality ERCs Generated ERSs Used ERCs Retired ERCs Expired
CO - - - - - -
NOx 285.6 28.56 257.04 - 175.0 82.04
VOC - - - - - -
Pb - - - - - -
PM - - - - - -
PM10 - - - - - -
SO2 1801.50 180.15 1621.35 - - 1621.35
Figure 2: Summary of WVDEP’s Emissions Banking and Trading Program

2021

Evaluation Period: August 15, 2018 - August 14, 2021

Evaluation Summary: Since the last evaluation in 2018, there has been no new Emission Reduction Credits (ERCs) generated. There are currently no ERCs in the registry since all previously generated ERCs expired or have been retired.

45CSR28, "Air Pollutant Emissions Banking and Trading", contains provisions in Section 16 requiring the Director to conduct, or cause to be conducted, an evaluation of the emission trading program established under the provisions of this rule. The evaluation shall be conducted every three (3) years, or more frequently if deemed necessary by the Director, to make all of the following emission trading program assessments:

  • 45CSR§28-16.1.a.: Whether the program is consistent with the maintenance of national ambient air quality standards and has resulted in emission reductions consistent with reasonable further progress towards attainment and maintenance of national ambient air quality standards.

  • 45CSR§28-16.1.b.: Whether requirements for monitoring, recordkeeping, reporting, and enforcement have resulted in a sufficiently high level of compliance.

  • 45CSR§28-16.1.c.: Whether the program has caused any localized adverse effects to the public health, safety, welfare or to the environment, including any disproportionate air quality impacts. This assessment shall include an analysis of the effects of emission trading on the emissions and impacts of toxic or hazardous air pollutant emissions.

  • 45CSR§28-16.1.d.: Whether the program is achieving reductions across a spectrum of sources, including area and mobile sources.

  • 45CSR§28-16.1.e.: Whether provisions for conducting audits of emission reduction credit transactions have resulted in a sufficient number of audits being conducted across a spectrum of sources.

Evaluation

Since the last evaluation in 2018, there has been no new Emission Reduction Credits (ERCs) generated. There are currently no ERCs in the registry since all previously generated ERCs expired or have been retired.

As of this date no ERCs have been used. Below is a table showing ERC retirement and expiration as of this date:

Retirement
Source ID Series Number Owner Date of Retirement Retirement amount
003-00008 00300008 2002 N 01 A Virginia Electric & Power Co. 4/8/2011 175 tons of NOx
​Expired
Source ID Series Number Owner Date of Expiration Expired amount
003-00008 00300008 2002 N 01 B CPV Warren, LLC 1/1/2012 76.1 tons of NOx
073-00003 07300003 2005 S 01 Cytec Willow Island 12/31/2014 1621.35 tons of SO2
051-00009 05100009 2007 N 01 Bayer 10/5/2017 5.94 tons of NOx

On June 16, 2004 WVDEP submitted a 45CSR28 SIP (State Implementation Plan) package to USEPA for approval and incorporation into the West Virginia SIP. USEPA returned the SIP request to WVDEP on June 9, 2009 without acting on it.

On October 16, 2010, Braskem (Facility I.D. No. 099-00010) applied for 280 tons of SO2 ERC for shutting down a coal fired boiler at their Neal plant. The emission quantification protocol has to be approved by WVDEP and USEPA. WVDEP is still awaiting a reply from USEPA on approval of emission quantification protocol.

Below is a summary of WVDEP's Emissions Banking and Trading Program to date:

 
Summary of WVDEP's Emissions Banking and Trading Program to Date (Tons)
Pollutant Total Tons Reduced Retired to Benefit Air Quality ERCs Generated ERCs Used ERCs Retired ERCs Expired
CO - - - - - -
NOx 285.6 28.56 257.04 - 175.0 82.04
VOC - - - - - -
Pb - - - - - -
PM - - - - - -
PM10 - - - - - -
SO2 1801.50 180.15 1621.35 - - 1621.35
 
 

2018

Evaluation Period: August 15, 2015 - August 14, 2018  

Evaluation Summary: Since the last evaluation in 2015, source I.D. 051-00009 has been deleted because all the Emission Reduction Credits (ERCs) generated are either retired or expired.  

45CSR28, Air Pollutant Emissions Banking and Trading, contains provisions in Section 16 requiring the Director to conduct, or cause to be conducted, an evaluation of the emission trading program established under the provisions of this rule. The evaluation shall be conducted every three (3) years, or more frequently if deemed necessary by the Director, to make all of the following emission trading program assessments:

  • Whether the program is consistent with the maintenance of national ambient air quality standards and has resulted in emission reductions consistent with reasonable further progress towards attainment and maintenance of national ambient air quality standards. 45CSR§28-16.1.a.
  • Whether requirements for monitoring, recordkeeping, reporting, and enforcement have resulted in a sufficiently high level of compliance. 45CSR§28-16.1.b.
  • Whether the program has caused any localized adverse effects to the public health, safety, welfare or to the environment, including any disproportionate air quality impacts.This assessment shall include an analysis of the effects of emission trading on the emissions and impacts of toxic or hazardous air pollutant emissions. 45CSR§28-16.1.c.
  • Whether the program is achieving reductions across a spectrum of sources, including area and mobile sources. 45CSR§28-16.1.d.
  • Whether provisions for conducting audits of emission reduction credit transactions have resulted in a sufficient number of audits being conducted across a spectrum of sources. 45CSR§28-16.1.e.
 
 

Evaluation

Since the last evaluation in 2015, source I.D. 051-00009 has been deleted because all the Emission Reduction Credits (ERCs) generated are either retired or expired. A brief summary of the registry is as follows:

Company Plant I.D. County Pollutant ERCs Registered Expiration Date
Bayer New Martinsville 051-00009 Marshall NOx 5.94 10/5/2017

WVDEP worked with USEPA Region III to examine the ERC generation quantification protocols for the above facility. In approving the above ERCs, special attention was paid to be consistent with the maintenance of national ambient air quality standards.

As of this date no ERCs have been used. Below is a table showing ERC retirement and expiration as of this date:

Retirement

Source ID Series Number Owner Date of Retirement Retirement Amount
003-00008 00300008 2002 N 01 A Virginia Electric & Power Co. 4/8/2011 175 tons of NOx

Expired

Source ID Series Number Owner Date of Expiration Expired Amount
003-00008 00300008 2002 N 01 B CPV Warren, LLC 1/1/2012 76.1 tons of NOx
073-00003 07300003 2005 S 01 Cytec Willow Island 12/31/2014 1621.35 tons of SO2
051-00009 05100009 2007 N 01 Bayer 10/5/2017 5.94 tons of NOx

On June 16, 2004 WVDEP submitted a 45CSR28 SIP (State Implementation Plan) package to USEPA for approval and incorporation into the West Virginia SIP. USEPA returned the SIP request to WVDEP on June 9, 2009 without acting on it.  

On October 16, 2010, Braskem (Facility I.D. No. 099-00010) applied for 280 tons of SO2 ERC for shutting down a coal fired boiler at their Neal plant. The emission quantification protocol has to be approved by WVDEP and USEPA. WVDEP is still awaiting a reply from USEPA on approval of emission quantification protocol.  

Below is a summary of WVDEP's Emissions Banking and Trading Program to date:

Summary of WVDEPs Emissions Banking and Trading Program to Date (Tons)

Pollutant Total Tons Reduced Retired to Benefit Air Quality ERCs Generated ERCs Used ERCs Retired ERCs Expired
CO - - - - - -
NOx 285.6 28.56 257.04 - 175.0 82.04
VOC - - - - - -
Pb - - - - - -
PM - - - - - -
PM10 - - - - - -
SO2 1801.50 180.15 1621.35 - - 1621.35
 
 

2015

Evaluation Period: August 15, 2012 - August 14, 2015  

Evaluation Summary: Since the last evaluation in 2012, source I.D. 073-00003 has been deleted because all the Emission Reduction Credits (ERCs) generated are either retired or expired.  

45CSR28, Air Pollutant Emissions Banking and Trading, contains provisions in Section 16 requiring the Director to conduct, or cause to be conducted, an evaluation of the emission trading program established under the provisions of this rule. The evaluation shall be conducted every three (3) years, or more frequently if deemed necessary by the Director, to make all of the following emission trading program assessments:

  • Whether the program is consistent with the maintenance of national ambient air quality standards and has resulted in emission reductions consistent with reasonable further progress towards attainment and maintenance of national ambient air quality standards. 45CSR§28-16.1.a.
  • Whether requirements for monitoring, recordkeeping, reporting, and enforcement have resulted in a sufficiently high level of compliance. 45CSR§28-16.1.b.
  • Whether the program has caused any localized adverse effects to the public health, safety, welfare or to the environment, including any disproportionate air quality impacts. This assessment shall include an analysis of the effects of emission trading on the emissions and impacts of toxic or hazardous air pollutant emissions. 45CSR§28-16.1.c.
  • Whether the program is achieving reductions across a spectrum of sources, including area and mobile sources. 45CSR§28-16.1.d.
  • Whether provisions for conducting audits of emission reduction credit transactions have resulted in a sufficient number of audits being conducted across a spectrum of sources. 45CSR§28-16.1.e.
 
 

Evaluation

Since the last evaluation in 2012, source I.D. 073-00003 has been deleted because all the Emission Reduction Credits (ERCs) generated are either retired or expired. A brief summary of the registry is as follows:  

Company Plant I.D. County Pollutant ERCs Registered Expiration Date
Bayer New Martinsville 051-00009 Marshall NOx 5.94 10/5/2017

WVDEP worked with USEPA Region III to examine the ERC generation quantification protocols for the above facility. In approving the above ERCs, special attention was paid to be consistent with the maintenance of national ambient air quality standards.

As of this date no ERCs have been used. Below is a table showing ERC retirement and expiration as of this date  

Retirement

Source ID Series Number Owner Date of Retirement Retirement Amount
003-00008 00300008 2002 N 01 A Virginia Electric & Power Co. 4/8/2011 175 tons of NOx

Expired

Source ID Series Number Owner Date of Expiration Expired Amount
003-00008 00300008 2002 N 01 B CPV Warran, LLC 1/1/2010 76.1 tons of NOx
073-00003 07300003 2005 S 01 Cytec Willow Island 12/31/2014 1621.35 tons of SO2
 
 

On June 16, 2004 WVDEP submitted a 45CSR28 SIP (State Implementation Plan) package to USEPA for approval and incorporation into the West Virginia SIP. USEPA returned the SIP request to WVDEP on June 9, 2009 without acting on it.  

On October 16, 2010, Braskem (Facility I.D. No. 099-00010) applied for 280 tons of SO2 ERC for shutting down a coal fired boiler at their Neal plant. The emission quantification protocol has to be approved by WVDEP and USEPA. WVDEP is still awaiting a reply from USEPA on approval of emission quantification protocol.  

Summary of WVDEPs Emissions Banking and Trading Program to Date (Tons)

Pollutant Total Tons Reduced Retired to Benefit Air Quality ERCs Generated ERCs Used ERCs Retired ERCs Expired
CO - - - - - -
NOx 285.6 28.56 257.04 - 175.0 76.1
VOC - - - - - -
Pb - - - - - -
PM - - - - - -
PM10 - - - - - -
SO2 1801.50 180.15 1621.35 - - 1621.35
 
 

2012

Evaluation Period: August 15, 2009 - August 14, 2012  

Evaluation Summary: Since the last evaluation in 2009, source I.D. 003-00008 has been deleted because all the Emission Reduction Credits (ERCs) generated are either retired or expired.  

45CSR28, Air Pollutant Emissions Banking and Trading, contains provisions in Section 16 requiring the Director to conduct, or cause to be conducted, an evaluation of the emission trading program established under the provisions of this rule. The evaluation shall be conducted every three (3) years, or more frequently if deemed necessary by the Director, to make all of the following emission trading program assessments:

  • Whether the program is consistent with the maintenance of national ambient air quality standards and has resulted in emission reductions consistent with reasonable further progress towards attainment and maintenance of national ambient air quality standards. 45CSR§28-16.1.a.
  • Whether requirements for monitoring, recordkeeping, reporting, and enforcement have resulted in a sufficiently high level of compliance. 45CSR§28-16.1.b.
  • Whether the program has caused any localized adverse effects to the public health, safety, welfare or to the environment, including any disproportionate air quality impacts. This assessment shall include an analysis of the effects of emission trading on the emissions and impacts of toxic or hazardous air pollutant emissions. 45CSR§28-16.1.c.
  • Whether the program is achieving reductions across a spectrum of sources, including area and mobile sources. 45CSR§28-16.1.d.
  • Whether provisions for conducting audits of emission reduction credit transactions have resulted in a sufficient number of audits being conducted across a spectrum of sources. 45CSR§28-16.1.e.
 
 

Evaluation

Since the last evaluation in 2009, source I.D. 003-00008 has been deleted because all the Emission Reduction Credits (ERCs) generated are either retired or expired. A brief summary of the registry is as follows:  

Company Plant I.D. County Pollutant ERCs Registered Expiration Date
Cytec Willow Island 073-00003 Pleasants SO2 1621.35 12/31/2014
Bayer New Martinsville 051-00009 Marshall NOx 5.94 10/5/2017

WVDEP worked with USEPA Region III to examine the ERC generation quantification protocols for the above two facilities. In approving the above ERCs, special attention was paid to be consistent with the maintenance of national ambient air quality standards.  

As of this date no ERCs have been used. Below is a table showing ERC retirement and expiration as of this date:

Retirement

Source ID Series Number Owner Date of Retirement Retirement Amount
003-00008 00300008 2002 N 01 A Virginia Electric & Power Co. 4/8/2011 175 tons of NOx

Expired

Source ID Series Number Owner Date of Expiration Expired Amount
003-00008 00300008 2002 N 01 B CPV Warran, LLC 1/1/2012 76.1 tons of NOx

 
 

On June 16, 2004 WVDEP submitted a 45CSR28 SIP (State Implementation Plan) package to USEPA for approval and incorporation into the West Virginia SIP. USEPA returned the SIP request to WVDEP on June 9, 2009 without acting on it.  

On October 16, 2010, Braskem (Facility I.D. No. 099-00010) applied for 280 tons of SO2 ERC for shutting down a coal fired boiler at their Neal plant. The emission quantification protocol has to be approved by WVDEP and USEPA. WVDEP is still awaiting a reply from USEPA on approval of emission quantification protocol.  

Below is a summary of WVDEP's Emissions Banking and Trading Program to date:

Summary of WVDEPs Emissions Banking and Trading Program To Date (Tons)

Pollutant Total Tons Reduced Retired to Benefit Air Quality ERCs Generated ERCs Used ERCs Retired ERCs Expired
CO - - - - - -
NOx 285.6 28.56 257.04 - 175.0 76.1
VOC - - - - - -
Pb - - - - - -
PM - - - - - -
PM10 - - - - - -
SO2 1801.50 180.15 1621.35 - - -
 
 

2009

Evaluation Period: August 15, 2006 - August 14, 2009

Evaluation Summary: Since the last evaluation in 2006 one source has been added to the ERC Registry.

45CSR28, Air Pollutant Emissions Banking and Trading contains provisions in Section 16 requiring the Director to conduct, or cause to be conducted, an evaluation of the emission trading program established under the provision of this rule. The evaluation shall be conducted every three (3) years, or more frequently if deemed necessary by the Director, to make all of the following emission trading program assessments:  

  • Whether the program is consistent with the maintenance of national ambient air quality standards and has resulted in emission reductions consistent with reasonable further progress toward attainment and maintenance of national ambient air quality standards. 45CSR§28-16.1.a.
  • Whether requirements for monitoring, recordkeeping, reporting and enforcement have resulted in a sufficiently high level of compliance. 45CSR§28-16.1.b.
  • Whether the program has caused any localized adverse effects to the public health, safety or welfare, or to the environment, including any disproportionate air quality impacts. This assessment shall include an analysis of the effects of emission trading on the emissions and impacts of toxic hazardous air pollutant emissions. 45CSR§28-16.1.c.
  • Whether the program is achieving reductions across a spectrum of sources, including area and mobile sources. 45CSR§28-16.1.d.
  • Whether provisions for conducting audits of emission reduction credit transactions have resulted in a sufficient number of audits being conducted across a spectrum of sources. 45CSR§28-16.1.e.
 
 

Evaluation

Since the last evaluation in 2006 one source has been added to the ERC Registry. A brief summary of the registry is as follows:  

Company Plant I.D. County Pollutant ERCs Registered Expiration Date
CPV Warran, LLC World Kitchen, Martinsburg Plant 003-00008 Berkeley NOx 76.1 1/1/2012
Virginia Electric & Power Company World Kitchen, Martinsburg Plant 003-00008 Berkeley NOx 175.0 1/1/2012
Cytec Willow Island 073-00003 Pleasants SO2 1621.35 12/31/2014
Bayer New Martinsville 051-00009 Marshal NOx 5.94 10/5/2017

WVDAQ worked with USEPA Region III to examine the ERC generation quantifications protocols for the above facilities. In approving the above ERCs, special attention was paid to be consistent with the maintenance of national ambient air quality standards.  

Transfer/Trade

According to the ERC retirement provision for air quality benefits of 45CSR28, 28.56 tons of NOx and 180.15 tons of SO2 were retired for air quality benefit. As of this date, no ERCs have been used. Below is a table showing Transfer/Trade as of this date:  

Source ID Series Number Transferer (Seller) Transferee (Buyer) Transfer Date
003-00008 00300008 2002 N 01 A CPV Warren, LLC Virginia Electric & Power Company 5/22/2008
003-00008 00300008 2002 N 01 World Kitchen, Inc. CPV Warren, LLC 3/27/2008

On June 16, 2004 WVDEP submitted a 45CSR28 SIP (State Implementation Plan) package to USEPA for approval and incorporation into the West Virginia SIP. As of this date,no response has been received from the USEPA regarding the SIP submittal.  

Columbian Chemcial Company applied for an Emission Redution Credit for the intention of shutting down the facility (051-00019). The application is pending until Columbian Chemical Company informs the WVDAQ that the facility is shut down.  

No Action Has Been Taken For the Following ERC Applications Pending DAQ's Attainment Demonstration for PM2.5 SIP Call  

Company NOx ERCs (Tons) SO2 ERCs (Tons) PM ERCs (Tons) CO ERCs (Tons) VOC ERCs (Tons)
Union Carbide Corporation (Dow Chemical) 80 194 0 0 0
Schott Scientific Glass 75.52 0.43 24.7 1.94 2.91

Summary of DAQs Emissions Banking and Trading Program To Date (Tons)

Pollutant Total Tons Reduced Retired to Benefit Air Quality ERCs Generated ERCs Used ERCs Retired
CO - - - - -
NOx 285.6 28.56 257.04 - -
VOC - - - - -
Pb - - - - -
PM - - - - -
PM10 - - - - -
SO2 1801.50 180.15 1621.35 - -
 
 

2006

Evaluation Period: December 18, 2003 - August 14, 2006

Evaluation Summary: Since the last evaluation in 2003 an ERC (Emission Reduction Credit) Registry has been established.  

45CSR28, Air Pollutant Emissions Banking and Trading contains provisions in Section 16 requiring the Director to conduct, or cause to be conducted, an evaluation of the emission trading program established under the provision of this rule. The evaluation shall be conducted every three (3) years, or more frequently if deemed necessary by the Director, to make all of the following emission trading program assessments:  

  • Whether the program is consistent with the maintenance of national ambient air quality standards and has resulted in emission reductions consistent with reasonable further progress toward attainment and maintenance of national ambient air quality standards. 45CSR§28-16.1.a.
  • Whether requirements for monitoring, recordkeeping, reporting and enforcement have resulted in a sufficiently high level of compliance. 45CSR§28-16.1.b.
  • Whether the program has caused any localized adverse effects to the public health, safety or welfare, or to the environment, including any disproportionate air quality impacts. This assessment shall include an analysis of the effects of emission trading on the emissions and impacts of toxic hazardous air pollutant emissions. 45CSR§28-16.1.c.
  • Whether the program is achieving reductions across a spectrum of sources, including area and mobile sources. 45CSR§28-16.1.d.
  • Whether provisions for conducting audits of emission reduction credit transactions have resulted in a sufficient number of audits being conducted across a spectrum of sources. 45CSR§28-16.1.e.
 
 

Evaluation

Since the last evaluation in 2003an ERC (Emission Reduction Credit) Registry has been established. A brief summary of the registry is as follows:  

Company Plant I.D. County Pollutant ERCs Registered Expiration Date
World Kitchen Martinsburg 003-00008 Berkeley NOx 251.1 1/1/2012
Cytec Willow Island 073-00003 Pleasants SO2 1621.35 12/31/2014

According to the ERC retirement provisions for air quality benefits of 45CSR28, 27.9 tons of NOx and 180.15 tons of SO2 were retired for air quality benefit. As of this date, no ERCs have been traded or used.  

WV DAQ worked with US EPA Region III to examine the ERC generation quantifications protocols for the above facilities. In approving the above ERCs, special attention was paid to be consistent with the maintenance of national ambient air quality standards.  

On June 16, 2004, the WVDEP submitted a 45CSR28 SIP (State Implementation Plan) package to USEPA for approval and incorporation in the West Virginia SIP. As of this date, there was no response from USEPA regarding the SIP submittal.  

No action has been taken for the following ERC applications pending DAQ's attainment demonstration for PM2.5 SIP call.  

Company NOx ERCs (Tons) SO2 ERCs (Tons) PM ERCs (Tons) CO ERCs (Tons VOC ERCs (Tons)
Union Carbide Corporation (Dow Chemical) 80 194 0 0 0
Schott Scientific Glass 75.52 0.43 24.7 1.94 2.91

Summary of DAQ's Emissions Banking and Trading Program to Date (Tons)  

Pollutant Total Tons Reduced Retired to Benefit Air Quality ERCs Generated ERCs Used ERCs Retired
CO - - - - -
NOx 285.6 28.56 257.04 - -
VOC - - - - -
Pb - - - - -
PM - - - - -
PM10 - - - - -
SO2 1801.50 180.15 1621.35 - -
 
 

2003

Evaluation Period: August 31, 2000 - December 17, 2003  

Evaluation Summary: 45CSR28 became effective on August 31, 2000. As of this date, no Emission Reduction Credits (ERCs) have been registered, traded, used or retired, hence none of the provisions listed above can be evaluated for the period of Ausut 31, 2000 to December 17, 2003.  

45CSR28, Air Pollutant Emissions Banking and Trading contains provisions in Section 16 requiring the Director to conduct, or cause to be conducted, an evaluation of the emission trading program established under the provision of this rule. The evaluation shall be conducted every three (3) years, or more frequently if deemed necessary by the Director, to make all of the following emission trading program assessments:  

  • Whether the program is consistent with the maintenance of national ambient air quality standards and has resulted in emission reductions consistent with reasonable further progress toward attainment and maintenance of national ambient air quality standards. 45CSR§28-16.1.a.
  • Whether requirements for monitoring, recordkeeping, reporting and enforcement have resulted in a sufficiently high level of compliance. 45CSR§28-16.1.b.
  • Whether the program has caused any localized adverse effects to the public health, safety or welfare, or to the environment, including any disproportionate air quality impacts. This assessment shall include an analysis of the effects of emission trading on the emissions and impacts of toxic hazardous air pollutant emissions. 45CSR§28-16.1.c.
  • Whether the program is achieving reductions across a spectrum of sources, including area and mobile sources. 45CSR§28-16.1.d.
  • Whether provisions for conducting audits of emission reduction credit transactions have resulted in a sufficient number of audits being conducted across a spectrum of sources. 45CSR§28-16.1.e.
 
 

Evaluation

45CSR28 became effective on August 31, 2000. As of this date, no Emission Reduction Credits (ERCs) have been registered, traded, used or retired, hence none of the provisions listed above can be evaluated for the period of August 31, 2000 to December 17, 2003.  

Summary of Actions Regarding 45CSR28 as of December 17, 2003

Current use of 45CSR28 has been extremely limited. Since the inception of the program on August 31, 2000, there have been no approved Emission Reduction Credit (ERC) generations. This program has not yet been submitted for State Implementation Plan (SIP) approval to USEPA Region III.  

Background

Once 45CSR28, "Air Pollutant Emissions Banking and Trading", became effective on August 31, 2000, the Division of Air Quality developed the following forms and documents for implentation of the program:  

  • Using DAQ's Emission Trading Program - General Guidance
  • Application to Use a New or ALternate Quantification Protocol
  • Notice of ERC Generation
  • Notice of ERC Trade/Transfer
  • Notice of ERC Use or Retirements
  • Example Legal Ad for Public Notice

Notices of Intent to Register Emission Reduction Credits

All sources generating emissions reductions via shutdown between January 1, 1991, and the August 31, 2000, effective date of 45CSR28 were required per Section 7.1.d. and 12.7. of the rule to notify the DAQ of their intent to register these credits within sixty (60) days of the rule effective date of October 30, 2000.  

Thirteen (13) facilities representing multiple emission units submitted Notices of Intent to Register Emission Reduction Credits from sources shutdown between Jamuary 1, 1991, and August 30, 2000. Not all claims met the criteria required for proceeding with ERC Generation Registration under Rule 28. The pollutants reduced via these shutdowns were particulate matter, particulate matter less than 10 microns in diameter, sulfur dioxide, nitrogen oxides, carbon monoxide and volatile organic compounds. Additionally, some facilities included notice of reductions of compounds not listed in the Rule 28 open market trading program such as nitric acid, sulfuric acid and ammonia.  

ERC Generation & New or Alternate Quantifications Protocols Under Review

After DAQ finalized its forms, only three companies have submitted applications for registering emission credits. All of these submittals have been for ERCs generated from shutdowns.  

Of the three submittals for ERC Generation received to date, one company has withdrawn its application. The remaining two companies currently remain under review. Both of these reviews are pending USEPA Region III consideration of the quantification protocols used to determine the amount of pollutants reduced. According to 45CSR§28-8.2.b, both USEPA Region III and the State must approve new or alternate emission monitoring and quantification protocols used for the purpose of ERC trading. DAQ has approved the quantification protocols used by World Kitchen, Inc. and Union Carbide Corporation (Dow Chemical). DAQ has contacted US EPA Region III regarding the approval or disapproval of the quantification protocol used by these companies. As of this date, US EPA Region III's timeline to review and approve or disapprove the emission quantification protocols from these companies is unknown.  

Therefore, as of December 17, 2003, neither of the two remaining submittals have been determined "complete" under the rule and subsequently posted to the registry.  

Registry

The registry format is ready. Pending US EPA Region III approval of the quantification protocols, any complete registrations of emission credits can be posted in the registry.  

Registry Posting and Summary Pending U.S. EPA Region III Approval of Quantification Protocols

Company NOx ERCs (Tons) SO2 ERCs (Tons)
Ozone Season Non-Ozone Season
Union Carbide Corp. / Dow Chemical 50 148 194
World Kitchen, Inc. 210 148 0

Summary of DAQ's Emissions Banking and Trading Program To Date (Tons)

Pollutant Total Tons Reduced Retired to Benefit Air Quality ERCs Generated ERCs Used ERCs Retired
CO - - - - -
NOx 558 120 438 - -
VOC - - - - -
b - - - - -
PM - - - - -
PM10 - - - - -
SO2 388 194 194 - -
 
 

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