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OFFSETS

OFFSETS. Tan Nguyen, P. E. Air Permits Division Texas Commission on Environmental Quality Advanced Air Permitting Seminar 2013. Main Topics. What Is An Offset? When Are Offsets Used? Offsets Must Be…… How Are Offsets Created? Actual Emissions What Are The Offset Options?

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OFFSETS

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  1. OFFSETS Tan Nguyen, P. E. Air Permits Division Texas Commission on Environmental Quality Advanced Air Permitting Seminar 2013

  2. Main Topics • What Is An Offset? • When Are Offsets Used? • Offsets Must Be…… • How Are Offsets Created? • Actual Emissions • What Are The Offset Options? • When Are Offsets Realized?

  3. What Is An Offset ???

  4. What Is an Offset ??? • An actual emission reduction, greater than the project’s emission increase • The amount depends on the nonattainment classification • The nonattainment classification determines the “offset ratio”

  5. Current Nonattainment Areas and Offset Ratios DFW - Serious • Offset Ratio = 1.2 to 1 • Wise County (DFW) - Moderate Offset Ratio = 1.15 to 1 Wise . • HGB - Severe • Offset Ratio = 1.3 to 1 Ozone Nonattainment Offset Ratios

  6. When Are Offsets Used???

  7. When are Offsets Used ??? For nonattainment projects. Provide actual emission reductions for: • A new major source • A major modification

  8. Offsets Must Be….. • Permanent • Enforceable • Real • Quantifiable • Surplus

  9. How Are Offsets Created ???

  10. How Are Offsets Created ??? By actual emission reductions. But…. What are actual emissions ???????

  11. Actual Emissions • The average rate, in tons/year, actually emitted in the 24-months immediately before the particular change • A different 24-month period can be used if more representative of normal source operation

  12. What Are The Offset Options ???

  13. What Are The Offset Options ??? Offset Options: • Emission Credits (EC) • Discrete Emission Credits (DEC) • Mass Emission Cap & Trade Allowances (MECT) • HRVOC Emission Cap and Trade Allowances (HECT)

  14. When Are Offsets Realized ???

  15. When Are Offsets Realized ??? Prior to start of operation. HOWEVER ! ! ! ! ! Depending on option chosen, possibly prior to permit issuance.

  16. Are “offsets” and “contemporaneous reductions” the same thing?

  17. Nooooooo…! ! ! They are Not the same thing. Why ????????

  18. Are “offsets” and “contemporaneous reductions” the same thing? • Offsets apply to Nonattainment Review • Contemporaneous reductions are used for major new source review applicability

  19. Where Are Offsets Obtained? Through the Emissions Banking and Trading Program.

  20. BUT This is a topic for the ……..Next Presentation. TAKE IT AWAY, Melissa !!!

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