Section 11-60.1-204 - Greenhouse gas emission reduction plan(a) This section applies to an owner or operator of a permitted covered source, except for municipal waste combustion operations, with the potential to emit GHG emissions (biogenic plus non-biogenic) equal to or above 100,000 tons per year CO2e. Each owner or operator of an affected source shall submit a GHG emission reduction plan for the director's approval within twelve (12) months of the effective date of this section. An owner or operator may submit a written request for an extension 30 days prior to the deadline.(b) The GHG emission reduction plan will be used to evaluate and establish an annual facility-wide GHG emissions cap for the affected source in support of achieving and maintaining the statewide GHG limit. The approved facility-wide GHG emissions cap and the associated provisions will be made a part of the covered source permit, and may be revised through the permit process to respond to new rules, updated technology, GHG reduction initiatives, and any other circumstances deemed necessary by the director to facilitate the state's GHG limit.
(c) Unless substantiated by the owner or operator of an affected source and approved by the director to be unattainable pursuant to the GHG control assessment described in subsection 11-60.1-204(d), each GHG emission reduction plan shall establish a minimum facility-wide GHG emissions cap in tons per year CO2e, to be achieved by 2020 and maintained thereafter. The minimum facility-wide GHG emissions cap shall be sixteen percent (16%) below the facility's total baseline GHG emission levels less biogenic CO2 emissions, as follows: Where:
| Facility- | Facility | | Facility |
| wide cap = (1-0.16) x | total | - | Basline |
| (tpy co2e) | Basline | | Biogenic |
| Emissions | | co2 Emissions |
| (tpy co2e) |
Where:
Facility Total Baseline Emissions (tpy CO2e) = Baseline[Biogenic + Non-Biogenic GHG Emissions]
Calendar year 2010 shall be used as the baseline year, unless the owner or operator can provide records for the director's approval demonstrating another year or an average of other years to be more representative of normal operations. Newly permitted sources without an operating history, shall estimate normal operations for the director's approval in establishing the facility-wide GHG emissions cap.
(d) The GHG emission reduction plan required of affected sources shall at a minimum include: (1) The facility-wide baseline annual emission rate (tpy CO2e). Calendar year 2010 annual emissions shall be used as the baseline emissions to calculate the required facility-wide GHG emissions cap, unless another baseline year or period is approved by the director. Baseline emissions shall be determined in accordance with section 11-60.1-115, separated between biogenic and non-biogenic emissions, and exclude all emissions of noncompliance with an applicable requirement or permit limit. The owner or operator shall include the data and calculations used to determine the baseline emissions. If calendar year 2010 is deemed unrepresentative of normal operations, then the owner or operator may propose an alternate baseline annual emission rate for the director's approval, as follows: (A) The owner or operator shall clearlydocument why calendar year 2010 is not representative of normal operations and why the proposed alternate year or period is more suitable based on trends, existing equipment and controls, scheduled maintenance, operational practices, and any other relevant information. Acceptable methods for determining alternate facility-wide baseline annual emissions include: (i) the facility-wide GHG emissions (less biogenic CO2) based on the most recent representative year during the five-year period ending 2010;(ii) average facility-wide GHG emissions (less biogenic CO2) over any consecutive two-year period during the five-year period ending in 2010;(iii) average facility-wide GHG emissions (less biogenic CO2) for the five-year period ending in 2010; or(iv) comparable methods as approved by the director. The director will not consider the use of periods greater than five years from 2010, except for extreme cases such as where an affected source may not have been fully operational for an extended period of time.(B) For newly permitted covered sources without a 2010 operating history, the owner or operator shall make the best estimate of normal operations based on contract agreements, available operational records, required scheduled maintenance, market forecast, or any other information for projecting the affected source emissions. Potential emissions shall not be used, unless the owner or operator can clearly demonstrate that the facility will be continually operating at the maximum capacity for each and every year. The owner or operator shall provide all supporting documentation for the proposed alternate baseline emission rate. The director, based on available information, may reject and modify the baseline emission rate in establishing the final facility-wide GHG emissions cap.
(2) The 2020 facility-wide GHG emissions cap. Determine the facility-wide GHG emissions cap in accordance with subsection(c), using calendar year 2010 or the proposed GHG baseline emission rate determined by paragraph (1) above. If the required emissions cap requiring a sixteen percent (16%) emission reduction from baseline year emissions is deemed unattainable, the owner or operator shall provide, as part of the reduction plan:(A) The justification and supporting documentation of why the required emissions cap cannot be met; and(B) A proposal, for the director's approval, of an alternate emissions cap resulting in the maximum achievable GHG reductions. In determining whether or not the required GHG emissions cap is attainable, the owner or operator of an affected source shall first conduct the GHG control assessment described in paragraphs (3) to (5). Available EPA guidelines for GHG Best Available Control Technology analysis, and GHG control measures by source type shall be used as applicable for this assessment.
(3) Available Control Measures. Identify all available control measures with potential application for each source type, and all on-the-book control measures the facility is committed or will be required to implement affecting GHG emissions. At a minimum, the following shall be considered as applicable: (A) Available technologies for direct GHG capture and control;(B) Fuel switching or co-fired fuels;(C) Energy efficiency upgrades;(D) Combustion or operational improvements;(E) Restrictive operations;(F) Planned upgrades, overhaul, or retirement of equipment;(G) Outstanding regulatory mandates, emission standards, and binding agreements; and(H) Other GHG reduction initiatives that may affect the facility's GHG emissions. Unless the owner or operator of the source has direct ownership or legal control over a GHG reduction initiative, that initiative cannot be relied upon as a proposed control strategy. Identification of GHG reduction initiatives, whether or not the owner or operator has ownership or legal control, will serve to highlight their potential importance for reducing GHG emissions in the state. The owner or operator of an affected source will only benefit from a GHG initiative, if the initiative reduces or helps to reduce and maintain the source's GHG emissions below its permitted facility-wide GHG emissions cap.(4) The Technically Feasible Measures. For any new control measure identified for the facility, eliminate all technically infeasible options based on physical, chemical, or engineering principles that would preclude the successful operation of the control with the applicable emission unit or source. Document the basis of elimination, and generate the list of technically feasible control options for further evaluation. All committed and required on-the-book measures shall remain on the list.(5) Control Effectiveness and Cost Evaluation. List the technically feasible control options and identify the following for each control measure as applicable. All cost data shall be provided in present dollars.(A) Control effectiveness (percent pollutant removed);(B) Expected emission rate (tons per year CO2e, pounds CO2e/kilowatt-hour);(C) Expected emission reduction (tons per year CO2e);(D) Energy impacts (BTU, kilowatt-hour);(E) Environmental impacts (other media and the emissions of other regulated air pollutants);(F) Any secondary emissions or impacts resulting from the production or acquisition of the control measure; and(G) Economic impact (cost effectiveness: annualized control cost, dollar/megawatt-hr, dollar/ton CO2e removed, and incremental cost effectiveness between the control and status quo). For committed or required on-the-books control measures and any other GHG control initiatives, identify at a minimum, items (A) through (C) above. Considering the energy, environmental, and economic impact, determine the GHG control or suite of controls found to be feasible in achieving the maximum degree of GHG reductions for the facility. Determine whether the required GHG emissions cap, pursuant to subsection (c) will be met. If an alternate cap must be proposed for approval, declare the proposed percentage GHG reduction and the alternate GHG reduction cap. Provide the justification and associated support information (e.g., references, assumptions, vendor quotes, sample calculations, etc.) to substantiate the control analysis and alternate GHG emissions cap.
(6) The proposed Control Strategy. Present the listing of control measures to be used for implementation in meeting the required or proposed alternate 2020 facility-wide GHG emissions cap. Include discussion of the control effectiveness, control implementation schedule, and the overall expected GHG CO2e emission reductions (tpy) for the entire facility. Owners or operators shall also consider the following: (A) Affected sources may propose to combine their facility-wide GHG emissions caps to leverage emission reductions among partnering facilities in meeting the combined GHG emissions caps. If approved by the director, each partnering facility will be responsible for complying with its own adjusted GHG facility-wide emissions cap.(B) Except for fee assessments and determining applicability to this section, biogenic CO2 emissions will not be included when determining compliance with the facility-wide emissions cap until further guidance can be provided by EPA, or the director, through rulemaking.(C) The approved facility-wide GHG emissions cap and the associated monitoring, recordkeeping, and reporting provisions will be made a part of the covered source permit, enforceable by the director.(e) Failure to submit an adequate GHG emission reduction plan, or failure to submit relevant facts or correct information upon becoming aware of such failure, constitutes a violation of this chapter. The owner or operator of an affected source has the same duty to certify the GHG emission reduction plan in accordance with section 11-60.1-4, and supplement or correct the GHG emission reduction plan, similar to the provisions in section 11-60.1-84 for covered source permit applications. During the processing of a GHG emission reduction plan, if the director determines that a re-submittal of the plan is required, or submittal of additional information is necessary to evaluate or take final action on the plan, the director may make the request in writing and set a reasonable deadline for the response.(f) If the owner or operator of an affected source fails to submit an adequate GHG emission reduction plan, or if a facility-wide GHG emissions cap cannot be mutually agreed upon, the director reserves the right to establish, and incorporate into the applicable covered source permit, a facility-wide GHG emissions cap as required or the lowest cap deemed achievable by the affected source based on the intent of this subchapter.(g) Once a facility-wide GHG emissions cap is established and placed into the covered source permit, the GHG emission reduction plan shall become a part of the covered source permit application process for renewals and any required modifications pursuant to subchapter 5. With each subsequent GHG emission reduction plan submittal, the owner or operator of the affected source shall report:(1) The GHG emission reduction status;(2) Factors contributing to the emission changes;(3) Any control measure updates; and(4) Any new developments or changes that would affect the basis of the facility-wide GHG emissions cap.(h) The facility-wide GHG emissions cap may be re-evaluated and revised by the director if any of the following events or circumstances exists:(1) Consideration for new rules, updated technology, implementation of GHG reduction initiatives, significant changes with renewable energy cost and supply, and any other measures deemed necessary by the director to facilitate the state's GHG limit;(2) The basis for establishing the facility-wide GHG emissions cap is found to be incorrect;(3) The methodology for calculating GHG emissions is updated or modified;(4) Renewable energy producers cease operations or fail to meet contractual obligations with the affected source, and there are no other reasonable alternatives; or(5) Reasonably unforeseen events beyond the control of the owner or operator of an affected source, resulting in long-term or temporary emission changes, whereby the maintenance of the GHG emissions cap would be detrimental to the health and welfare of the public. Any revision to a facility-wide GHG emissions cap is considered a significant modification subject to the application and review requirements of section 11-60.1-104. The owner or operator of an affected source seeking a GHG emissions cap change has the burden of proof to substantiate any requested change for the director's approval. Upon approving any GHG emissions cap revision, the director may impose additional emission limits or requirements on the affected source, or limit the time-frame allowed for the revised GHG emissions cap.
(i) Municipal solid waste landfills required by 40 CFR Part 60, Subpart Cc or 40 CFR Part 60, Subpart WWW to use gas collection and control systems are conditionally exempt from the GHG emission reduction requirements of Subsection 11-60.1-204(c).(j) Should the permitted facility-wide GHG emissions cap not be met by January 1, 2020 and annually maintained thereafter, the owner or operator of the covered source shall be subject to enforcement action for each year after 2019 that the facility-wide cap is not met. Compliance with the facility-wide cap shall be determined at the end of each calendar year, or January 1 of the following year, starting with the end of 2019 or January 1, 2020. Each CO2e ton over the cap shall constitute a separate offense and violation.(k) The director shall conduct an evaluation in 2016, and annually thereafter, to determine the progress of achieving and if applicable, ongoing maintenance of the statewide GHG emissions limit specified in HRS, Chapter 342B-71 and section 11-60.1-203. The evaluation of the statewide GHG emission limit shall be conducted in a manner consistent with the procedures used to prepare the 1990 emission estimates under Act 234, 2007 Hawaii Session Laws. The director shall produce and make public annual progress reports listing GHG emissions levels for each affected facility and the statewide progress relative to the statewide GHG emission limit. If the director determines that statewide GHG emission limit is met prior to 2020 and GHG emission projections indicate ongoing maintenance of the limit, the requirements of this section shall no longer be applicable to the affected facilities. Prior to finalizing any determination that the statewide GHG emission limit has been met, the director shall provide for public notice and an opportunity for public comment in accordance with the requirements specified in section 11-60.1-205. Upon achieving the statewide GHG emission limit, the director may revise or adopt additional rules to ensure the ongoing maintenance of the statewide GHG emission limit.
Haw. Code R. § 11-60.1-204
[Eff and comp JUN 30 2014] (Auth: HRS §§ 342B-3, 342B-12, 342B-71, 342B-72, 342B-73; 42 U.S.C. §§7407, 7416 ) (Imp: HRS §§ 342B-3, 342B-12, 342B-71, 342B-72, 342B-73; 42 U.S.C. §§7407, 7416 )