TITLE X
PUBLIC HEALTH

Chapter 125-J
EMISSIONS REDUCTION TRADING PROGRAMS

Section 125-J:1

    125-J:1 Definitions. –
In this chapter:
I. "Actual emissions" means the rate, in tons per year, at which the device or source actually emitted a pollutant during calendar year 1990, or the average rate, in tons per year, at which the device or source actually emitted a pollutant during any 2-year period which precedes the date of application by no more than 5 years and which is representative of normal production rates, and which the department determines does not jeopardize any attainment demonstration under the Clean Air Act. Actual emissions shall be calculated using factors such as the source's actual operating hours, production rates, stack emissions rates, and types of materials processed, stored, or combusted during the applicable period.
II. "Allowable emissions" means the emission rate of a device or source calculated using the maximum rated capacity of the device or source, or, if applicable, federally enforceable limits which restrict the emission rate, operating rate, hours of operation, or any combination thereof, and the most stringent of the following:
(a) Any applicable standard set forth in 40 C.F.R. part 60 or 40 C.F.R. part 61;
(b) Any applicable New Hampshire state implementation plan emissions limitation, including a limitation with a future compliance date; or
(c) Any emissions rate specified as a condition of a federally enforceable permit issued by the department or EPA, including those with a future compliance date, or a federally enforceable emissions reductions credit certificate issued pursuant to an EPA-approved economic incentive program ("EIP").
III. "Area source" means stationary or non-road sources of emissions which are too small or too numerous to be individually included in a stationary source emissions inventory maintained by the department.
IV. "Attainment demonstration" means emissions reductions required to satisfy reasonable further progress and attainment of national ambient air quality standards under the Clean Air Act.
V. "Baseline emissions" means actual emissions or allowable emissions, whichever is less, as certified by the department.
VI. "Bubbling" means an alternate emissions control strategy where 2 or more existing devices or sources are placed under a hypothetical bubble which is regarded, for the purpose of achieving emissions reductions, as a single device or source.
VII. "Clean Air Act" or "CAA" means the Clean Air Act, 42 U.S.C. section 7401, et seq., as amended, and all final regulations adopted thereunder.
VIII. "Commissioner" means the commissioner of the department of environmental services.
IX. "Department" means the department of environmental services.
X. "Device" means "device which contributes to air pollution" as defined in RSA 125-C:2, VI.
XI. "Director" means the director of the division of air resources, department of environmental services.
XI-a. "Discrete emission reduction" or "DER" means an emission reduction generated over a discrete period of time, and measured in weight (e.g., tons).
XII. "Division" means the division of air resources, department of environmental services.
XII-a. "Emission budget" or "budget" means the numerical result in tons per season of NOx emissions which results from the application of the emission reduction requirement of the ozone transport commission memorandum of understanding dated September 27, 1994, and which is the maximum amount of NOx emissions which may be released from the budget sources collectively during a given control period.
XIII. "Emissions reduction credit certificate" means the document issued by the department certifying emissions reductions for use consistent with this chapter.
XIV. "Emissions reduction credits" or "ERCs" mean the actual air pollutant reductions from an emitting device or source that have been certified by the department as enforceable, permanent, quantifiable, real, and surplus. One ERC shall represent 2,000 pounds (1 ton) of emissions reduction per calendar year.
XV. "Enforceable" means those limitations and conditions on the operating rate, hours of operation, or types of materials processed, stored, or combusted of a source or device which are incorporated into a federally enforceable permit issued by the department or EPA, a federally enforceable emissions reduction credit certificate issued by the department pursuant to this chapter, or a revision to the SIP.
XVI. "EPA" means the United States Environmental Protection Agency.
XVII. "Federally enforceable" means all limitations and conditions which are enforceable by EPA, including those requirements developed pursuant to 40 C.F.R. parts 55, 60, 61 and 63; requirements within any applicable SIP, including a generic emissions trading program approved as an economic incentive program; requirements in operating permits issued pursuant to 40 C.F.R. part 70, 71, or 72; and any permit requirements established pursuant to 40 C.F.R. part 52.10, 52.21, or 40 C.F.R. part 55, or under regulations approved pursuant to 40 C.F.R. part 55 or 40 C.F.R. part 51, subpart I, including operating permits issued under an EPA approved program that is incorporated into the SIP and expressly requires adherence to any permit issued under such program.
XVIII. "Mobile source" means on-road vehicles such as automobiles, trucks, and motorcycles and non-road vehicles such as trains, airplanes, agricultural equipment, construction vehicles, off-road recreational vehicles and motorcycles, and boating vessels.
XIX. "Netting" means the process of determining whether a net emissions increase of a state or federally regulated pollutant at an existing major source will result from a proposed physical change or change in the method of operation. Netting is used to determine whether prevention of significant deterioration (PSD) or nonattainment area new source review applies to modifications at existing sources.
XIX-a. "NOx budget allowance" means the limited authorization to emit one ton of NOx during a specified control period. All NOx budget allowances shall be allocated, transferred, or used as whole NOx budget allowances. To determine the number of whole allowances, the number of NOx budget allowances shall be rounded down for decimals less than 0.50 and rounded up for decimals of 0.50 or greater.
XIX-b. "NOx budget source" means a fossil fuel fired boiler or indirect heat exchanger with a maximum rated heat input capacity of 250 MMBtu/Hour, or more; and all electric generating facilities with a rated output of 15 MW, or more. Any person who applies to opt into the NOx budget program shall be considered a NOx budget source upon acceptance of the application for opt-in.
XIX-c. [Repealed.]
XX. "Offset" means the use of an emissions reduction credit to compensate for emissions increases of a nonattainment pollutant from a new major stationary source or device or from a major modification to a stationary source or device subject to the requirements of the Clean Air Act.
XXI. "Permanent" means that the emissions reductions implemented for the generation and certification of an emissions reduction credit must be assured permanently through the issuance of a federally enforceable permit issued by the department or EPA, a federally enforceable emissions reduction credit certificate issued by the department, or a revision to the SIP.
XXII. "Person" means a person as defined in RSA 125-C:2, X who has been issued a permit by the department or the EPA, or a person as defined in RSA 125-C:2, X who owns, operates, or controls any area source, mobile source, or non-permitted source of air pollution for which reductions in pollutant emissions are eligible for certification under this chapter, or the state, except as provided in RSA 125-J:5, I and II.
XXIII. "Shutdown emissions credit" means emissions reduction credits acquired by the state through shutdown of devices and sources.
XXIV. "Quantifiable" means that the amount, rate, and characteristics of an ERC have been calculated in accordance with certified stack testing approved by the department, continuous emissions monitoring, or applicable control to technology guidance documents issued by EPA, or by any other method approved by the department and the EPA.
XXV. "Reasonably available control technology" or "RACT" means the lowest emission limitation that a source or device is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility.
XXVI. "Real" means the reduction in baseline emissions from a device or source released into the air.
XXVII. "Shutdown" means the cessation of production operations by a person who owns, operates, or controls a device or source.
XXVIII. "Source" means any stationary building, structure, facility, or installation which emits or may emit any state or federally regulated air pollutant.
XXIX. "State implementation plan" or "SIP" means the most recently prepared plan or revision thereof required by the Clean Air Act, and rules adopted by the department and single source SIP revisions which have been approved by the EPA or submitted to EPA for approval as part of the SIP.
XXX. "Surplus" means emissions reductions achieved from baseline emissions which are not otherwise required under the Clean Air Act or by the SIP for compliance with any attainment demonstration under the Clean Air Act, or by any administrative or judicial order, consent agreement or enforcement action.
XXXI. "Transfer" means the conveyance of an emissions reduction credit certificate from one person to another person, with or without consideration.

Source. 1994, 397:2. 1996, 228:106; 230:3-5. 1999, 46:1; 343:2. 2010, 59:2, I, eff. Jan. 1, 2014.

Section 125-J:2

    125-J:2 Establishment. – There is established an emissions reduction credits trading program to facilitate compliance with the requirements of the Clean Air Act.

Source. 1994, 397:2, eff. Aug. 9, 1994.

Section 125-J:2-a

    125-J:2-a Trading and Bank Programs. – The department may establish trading and bank programs regarding discrete emissions reductions, NOx budget allowances, or other emissions reduction credit mechanisms to facilitate compliance with the requirements of the Clean Air Act.

Source. 1996, 230:6, eff. July 1, 1996; 230:12, eff. July 1, 1996 at 12:01 a.m.

Section 125-J:3

    125-J:3 Nature of Emissions Reduction Credits. –
I. An emissions reduction credit certified by the department and issued to a device or source under this chapter is a limited authorization to hold and transfer such credits. Emissions reduction credits do not constitute a property right. Nothing in this chapter shall be construed as modifying the requirements of the Clean Air Act or RSA 125-C, as amended.
II. Emissions reduction credits, once certified and issued by the department, may be received, held, temporarily and permanently transferred and used in accordance with the provisions of this chapter and the Clean Air Act.

Source. 1994, 397:2, eff. Aug. 9, 1994.

Section 125-J:3-a

    125-J:3-a Escrow Authority. – The commissioner may accept payments to be held in an escrow account to be used for the purchase of emissions reduction credits, discrete emissions reduction credits, NOx budget allowances, and other emissions reduction credit mechanisms, until such time as credits, allowances or other mechanisms are available for trading or banking in a trading or banking program.

Source. 1996, 230:7, eff. July 1, 1996.

Section 125-J:4

    125-J:4 Certification of Emissions Reduction Credits. –
I. The department shall establish and administer a process for the application, certification, revocation and enforcement of emissions reduction credits for the following regulated pollutants: volatile organic compounds (VOCs), oxides of nitrogen (NOx), and carbon monoxide (CO).
II. Any person may be credited with emissions reductions occurring after December 31, 1990.
III. The department shall issue emissions reduction credits to any person upon certification by the department that the emissions reductions are real, surplus, quantifiable, enforceable, and permanent, and that a device or source is not in violation of any emissions limitation of a permit issued by the department or EPA, any consent agreement, or court order.
IV. The department shall issue an emissions reduction credit certificate to any person having certified emissions reduction credits. The certificate shall be in the name of the permit holder for a device or source, and in the name of the person certifying the emissions reduction for the device, area source, mobile source, and sources exempt from permitting requirements under RSA 125-C. The total amount of ERCs certified to a device, area source, mobile source, and source, together with any conditions required to ensure that such ERCs remain real, surplus, permanent, enforceable and quantifiable for the life of the ERC, shall be recorded on the certificate and, for every permitted device and source, as an amendment to any permit issued for the device or source by the department or by the EPA.
V. All emissions reductions obtained from devices, area sources, mobile sources, and sources shall be eligible for certification, regardless of whether the reductions were generated from emissions previously regulated under permits issued by the department or EPA, provided that the department determines that the reductions are real, surplus, quantifiable, enforceable and permanent, and that such reductions are certified in accordance with the Clean Air Act.
VI. Emissions reductions shall be certified for use on a calendar year basis. The minimum amount of emissions reductions eligible under this chapter for certification shall be 1 ton per calendar year, per pollutant. ERCs shall be certified in a ratio of 1 ton per calendar year of credit for 1 ton per calendar year of reduction for each pollutant. Emissions reductions of less than 1 ton may be aggregated in order to achieve the minimum 1 ton requirement.
VII. The commissioner may suspend, modify, or revoke any emissions reduction credits certificate issued under this chapter, or any portion thereof, upon a finding, following a hearing:
(a) That the certificate holder has committed a violation of this chapter, or any rule, order, permit, or certificate condition in force and applicable to it;
(b) That the certificate contains a material mistake or that the certificate, or its terms or conditions, were established and issued on the basis of inaccurate information; or
(c) That the certificate issued must be revised to assure that the reductions represented thereon are and remain quantifiable, real, permanent, enforceable and surplus, and in compliance with all terms and conditions issued thereto.

Source. 1994, 397:2. 1996, 228:104, 106, eff. July 1, 1996.

Section 125-J:4-a

    125-J:4-a Registration of Emissions Reduction Mechanisms. – The department may also establish and administer a process for the registration, revocation, and enforcement of discrete emissions reductions, NOx budget allowances, and all other emissions reduction mechanisms for any air pollutants in accordance with the Clean Air Act. The use of DERs, NOx budget allowances and other emissions reduction mechanisms shall be permitted as approved by EPA and in accordance with rules adopted by the commissioner pursuant to this chapter.

Source. 1996, 230:8, eff. July 1, 1996.

Section 125-J:4-b

    125-J:4-b Allocation of Emissions Reduction Mechanisms. – The department may also establish and administer a process for the allocation of NOx budget allowances, emissions reduction credits, discrete emission reductions, and other emissions reduction mechanisms which it is assigned by the federal government or interstate agreements or which it acquires in any other manner, except for shutdown of devices and sources. The department may allocate emissions reduction mechanisms without receiving payment in return.

Source. 1999, 46:2, eff. May 21, 1999.

Section 125-J:5

    125-J:5 Use of Emissions Reduction Credits. –
I. The department shall maintain and publish on January 1 and July 1 of every year a list of emissions reduction credit certificates which have been issued. The department shall update the list on a monthly basis no later than the 10th day of the month, and shall make the updated list available upon request under RSA 91-A. An emissions reduction credit certificate and the ERCs represented thereon shall be transferable among and between persons, as defined in RSA 125-C:2, X, and the state upon 7 days' prior written notice to the department.
II. Emissions reduction credits may be received, held, and transferred for so long as the credits are certified by the department. Any person as defined in RSA 125-C:2, X and the state may transfer any amount of ERCs at any time during the calendar year as provided in this chapter.
III. Emissions reduction credits may be used by a device or source to satisfy any requirement under the Clean Air Ac t or RSA 125-C for offsets, RACT, bubbling and netting, in accordance with the provisions of this chapter and as otherwise provided by the Clean Air Act and RSA 125-C. Emissions reduction credits shall not be used by a device or source to meet the requirements of, or result in a violation of, federal New Source Performance Standards (NSPS), National Emission Standards for Hazardous Air Pollutants (NESHAPS), the requirements for Lowest Available Emission Rate (LAER), the requirements for Best Available Control Technology (BACT), the requirements for Maximum Available Control Technology (MACT), any National Ambient Air Quality Standard for criteria pollutants, any Prevention of Significant Deterioration (PSD) increment, or any reduction required as the result of any state or federal enforcement action, consent agreement, or court order.
IV. ERCs to be used in satisfying any offset requirement under the Clean Air Act or RSA 125-C, and the regulations and rules promulgated thereunder, respectively, shall be transferred on a permanent basis. ERCs to be used in satisfying any RACT requirement under the Clean Air Act or RSA 125-C and the regulations and rules promulgated thereunder, respectively, may be transferred on a temporary or permanent basis.
V. ERCs held for future use in any calendar year shall not be aggregated for any purpose with ERCs certified for use in any other calendar year.
VI. ERCs to be used for the purpose of satisfying any RACT requirement shall have been obtained by the same source or device or another source or device in the same nonattainment area. ERCs to be used for the purpose of satisfying any offset requirement shall have been obtained in accordance with the Clear Air Act and RSA 125-C and the rules promulgated thereunder.
VII. Emissions reduction credits which have been certified to, or emissions reductions which are eligible for certification to, a device or source which shuts down its production operations shall be shutdown emissions credits and shall revert to the state for use consistent with this chapter, except where such ERCs are to be used at other devices and sources within the state by the person or persons who owned, operated or controlled the device or source that was shutdown.
VIII. Shutdown emissions credits obtained by the state pursuant to this chapter shall be used or held for use by the governor and council for meeting any requirement of the state implementation plan, any attainment demonstration under the Clean Air Act, or for the transfer to new or existing devices and sources in the state which require offsets under the Clean Air Act. No less than 75 percent of shutdown emissions credits generated in serious nonattainment areas shall be applied to requirements applicable in serious nonattainment areas.
IX. Transfers of shutdown emissions credits to new or existing sources and devices to meet offset requirements shall be temporary in nature and at no cost, except as otherwise provided in this section. An owner of a source or device who desires to receive a transfer of credits shall file an application with the department setting forth the following information:
(a) Whether and to what extent the acquisition of the credits will result in job retention;
(b) How use of the credits will result in economic development in New Hampshire;
(c) Whether the applicant's company offers prospects for long-term growth and job creation;
(d) Whether the applicant's company is a New Hampshire business or is relocating to New Hampshire;
(e) The market value of the credits and the information used to make such determination;
(f) The date that the applicant submitted or will submit to the department an application for an air permit under RSA 125-C:11, which shall be a prerequisite for the transfer of credits;
(g) The air quality classification of the area where the source or device will be located;
(h) The date that the source or device is estimated to commence operation; and
(i) The number of offsets required to comply with requirements of the Clean Air Act.
X. The department shall review the application and provide the governor and council with a written recommendation that addresses the information submitted by the applicant. Priority shall be given to applications that result in job retention and that assist existing New Hampshire businesses.
XI. An applicant that receives a transfer of shutdown emissions credits from the governor and council shall:
(a) Return the credits to the state, upon notice of the department, if the applicant's permit application under RSA 125-C:13 is denied or the source or device is not constructed or fails to commence operation; or
(b) Within 18 months of commencing operation of the source or device:
(1) Return the shutdown emissions credits to the state and acquire the necessary ERCs from elsewhere to continue operation, as approved by the department; or
(2) If some or all of the necessary ERCs to continue operation are not readily available to the applicant, as determined by the department, retain such quantity of shutdown emissions credits and purchase them from the state at a value, as can best be determined by the department, that will enable the state to later acquire a number of ERCs equal to the number of shutdown emissions credits retained and purchased by the applicant. If the department does not anticipate that ERCs will be readily available in the foreseeable future for the state to purchase, the governor and council shall determine the purchase value of the retained shutdown emissions credits after receipt of a written recommendation from the department.
XII. Funds from the sale of shutdown emissions credits shall be deposited in a special account within the air resources permit fund to be used by the governor and council for the acquisition and generation of ERCs that shall be used for the same purposes and administered in the same manner as shutdown emission credits.
XIII. The use of emissions reduction credits by a utility, as defined in RSA 362:2, shall be subject to such additional conditions as ordered pursuant to applicable law by the public utilities commission.

Source. 1994, 397:2. 1999, 46:3. 2010, 127:1, eff. June 9, 2010.

Section 125-J:6

    125-J:6 Trading of Emission Reduction Credits. –
I. ERCs generated by devices and sources subject to RACT which are transferred to devices and sources subject to RACT shall be transferred in the ratio of 1:1.
II. ERCs generated by devices, area sources, mobile sources, and sources not subject to RACT which are transferred for use by devices and sources in satisfying any RACT requirement under the Clean Air Act and RSA 125-C shall be transferred in accordance with the offset ratios for nonattainment areas as provided in the Clean Air Act.
III. ERCs certified for reductions of either nitrogen oxides (NOx) or volatile organic compounds (VOCs) under RSA 125-J:4, I, shall be eligible to satisfy any applicable offset requirements for the other upon a determination that such proposed substitution does not jeopardize any attainment demonstration and does not violate any applicable requirement of the National Emissions Standards for Hazardous Air Pollutants (NESHAPS), and upon the approval of EPA. Substitution of NOx and VOCs reductions shall be in a ratio approved by the department and EPA.
IV. The ratios provided in paragraphs I, II, and III are established solely for the purpose of transferring ERCs between devices and sources and do not modify, amend or supercede any offset requirements of the Clean Air Act.
V. Interstate trading of ERCs shall be permitted as approved by EPA and in accordance with rules adopted pursuant to this chapter.

Source. 1994, 397:2. 1996, 228:106, eff. July 1, 1996.

Section 125-J:7

    125-J:7 Inspection and Monitoring. –
I. For the purpose of determining compliance with this chapter, any rule adopted by the commissioner relative to this chapter or an emissions reduction credit certificate issued under this chapter, an employee or authorized representative of the department may, upon presentation of appropriate credentials and at any reasonable time:
(a) Enter any facility containing a device or source of air pollution;
(b) Inspect and photograph devices and sources which produce or control air pollution and air contaminates, and obtain samples of materials processed in, and generated from, the devices and sources in the facility; and
(c) Inspect and copy records, information or test results relating to air pollution, air contaminates, devices and sources which produce or control air pollution and air contaminates, emissions reductions implemented or to be implemented at a device or source, and emissions reductions credits which have been applied for by a device or source, or issued by the department.
II. The commissioner may require persons certifying and using ERCs to collect, maintain, and submit data necessary to ensure that ERCs are and remain in compliance with all requirements of this chapter and the Clean Air Act, and with the conditions of the emissions reduction credits certificates issued hereunder.
III. Information obtained by or submitted to the department under this chapter which, in the judgment of the department, constitutes a trade secret, shall not be disclosed to the public without notice to the owner of the trade secret and an opportunity for a hearing. The protection against unauthorized disclosure of trade secret information under this chapter shall not exceed that permitted under RSA 91-A. The department may provide information relating to trade secrets to the EPA, provided that the EPA guarantees the same degree of confidentiality afforded by the department.

Source. 1994, 397:2. 1996, 228:23, 104, eff. July 1, 1996.

Section 125-J:8

    125-J:8 Enforcement. –
I. Whenever the commissioner finds that a person who has been issued an ERC has violated the provisions of this chapter, any rules in force hereunder, or any condition of an emissions reduction credits certificate issued hereunder, including such conditions incorporated into permits issued by the department or EPA, the commissioner shall issue a notice of violation and an order of abatement establishing a compliance schedule with which the device, area source, mobile source, and source shall comply. Such order of abatement shall become final and enforceable by the commissioner within 30 days of its issuance unless an appeal is filed with the air resources council before the expiration of said 30-day period. The council shall hold a hearing on any such appeal promptly and shall thereafter issue a decision upholding, modifying or abrogating the commissioner's order or abatement or any part thereof. The council's decision shall become final 10 days after it is issued.
I-a. The commissioner of the department of environmental services, after notice and hearing pursuant to RSA 541-A, may impose an administrative fine not to exceed $2,000 for each offense upon any person who violates any provision of this chapter, any rule adopted pursuant to this chapter, or any permit, compliance schedule, stop use order, or order of abatement issued pursuant to this chapter; or upon any person who makes or certifies a material false statement relative to any document or information which is required to be submitted to the department pursuant to this chapter or any rule adopted pursuant to this chapter. Rehearings and appeals from a decision of the commissioner under this paragraph shall be in accordance with RSA 541. Any administrative fine imposed under this paragraph shall not preclude the imposition of further penalties under this chapter. The proceeds of administrative fines imposed pursuant to this paragraph shall be deposited in the general fund.
(a) Notice and hearing prior to the imposition of an administrative fine shall be in accordance with RSA 541-A and procedural rules adopted by the commissioner pursuant to RSA 541-A:16.
(b) The commissioner shall determine fines in accordance with RSA 125-C:15, I-b(b).
(c) The commissioner may assess an additional fine for repeat violations.
II. Any violation of this chapter, any rule adopted or final orders issued under this chapter, and any emissions reduction credits certificates issued under this chapter shall be subject to enforcement by injunction, including mandatory injunction, issued by the superior court upon application by the attorney general.

Source. 1994, 397:2. 1996, 228:104, 106; 247:14, eff. Jan. 1, 1997.

Section 125-J:9

    125-J:9 Penalties. –
I. Any person who violates any of the provisions of this chapter, or any rule adopted or order issued under this chapter, and any person who omits material information or makes any false statement or representation in connection with the certification of emission reduction credits shall be subject to a civil penalty not to exceed $25,000 for each violation and each day of a continuing violation.
II. Any person who knowingly or willfully violates any of the provisions of this chapter or any rule adopted or order issued under this chapter, and any person who knowingly or willfully omits material information or makes any false statement or representation in connection with the certification of emissions reduction credits shall be guilty of a misdemeanor if a natural person, or guilty of a felony if any other person.
III. Any person found guilty of any violation pursuant to RSA 125-J:8, II, notwithstanding RSA 651:2, and in addition to any sentence of imprisonment, probation, or conditional discharge, may be fined not more than $25,000 for each violation and each day of a continuing violation.

Source. 1994, 397:2, eff. Aug. 9, 1994.

Section 125-J:10

    125-J:10 Liability of Purchasers of Emission Reduction Credits Limited. –
I. Notwithstanding RSA 125-J:4, VII, an emissions reduction credits certificate issued pursuant to this chapter shall not be suspended, revoked, or modified during the term of the certificate for a person who has purchased or has accepted such a certificate for use as permitted under this chapter, and who can establish by a preponderance of the evidence that the certificate was purchased or accepted without any knowledge that the emissions reduction credits represented thereon were not real, surplus, permanent, and quantifiable, or that the person certifying the credits was in violation of any emissions limitation of a permit issued by the department or EPA, or any RACT or offset requirement under the Clean Air Act and RSA 125-C.
II. There shall be no liability under RSA 125-J:8 and RSA 125-J:9 for a violation of an emissions reduction credits certificate or for a violation of a condition of a permit relating to the use of emissions reduction credits during the term of the certificate or permit for a person who has purchased or accepted a transfer of such a certificate for use as permitted under this chapter, and who can establish by a preponderance of the evidence that the certificate was purchased without any knowledge that the emissions reduction credits represented thereon were not real, surplus, permanent, and quantifiable, or that the person certifying the credits was in violation of any emission limitation of a permit issued by the department or EPA, or any RACT or offset requirement under the Clean Air Act and RSA 125-C.

Source. 1994, 397:2. 1996, 228:106, eff. July 1, 1996.

Section 125-J:11

    125-J:11 Advisory Committee. –
I. There is established the air pollution advisory committee composed of the following members:
(a) Two representatives, appointed by the speaker of the house of representatives, of whom at least one shall be a member of the house science, technology, and energy committee. One representative shall be a member of a minority party.
(b) Two senators, appointed by the senate president.
(c) The governor, or designee.
I-a. The following additional members, whose terms shall be coterminous with their terms of office, shall be non-voting members of the committee and shall supply the committee with any information that it requests concerning matters subject to its purview:
(a) The commissioner of safety, or designee.
(b) The commissioner of environmental services, or designee.
II. The committee shall elect a chairperson and vice-chairperson, and meetings shall be at the call of the chair or a majority of committee members. The terms of the members shall be coterminous with their terms of office.
III. The committee shall perform an ongoing evaluation of the effectiveness of the following subjects and report its findings and recommendations to the governor and council, the speaker of the house, the senate president, the senate clerk, the house clerk, the state library, the house environment and agriculture, the science, technology and energy, and the commerce, small business, consumer affairs and economic development committees and the senate environment and economic development committees by October 1 of each year:
(a) The effectiveness of vehicle emission related portions of the motor vehicle safety inspection.
(b) The effectiveness of the emission reductions credits trading program.
IV. The committee shall also review and make recommendations to the commissioner on any proposed rule to be adopted under this chapter.

Source. 1994, 397:2. 1995, 9:15, 16. 1998, 207:2, eff. June 18, 1998. 2020, 37:24, eff. July 29, 2020.

Section 125-J:11-a

    125-J:11-a Escrow Authority. –
I. The commissioner, in consultation with the treasurer of the state of New Hampshire, may establish non-interest-bearing escrow accounts to facilitate the acquisition of ERCs, DERs, and other emissions reduction mechanisms. The commissioner shall maintain and publish, on or before January 1 and July 1 of each year, a list of all escrow accounts established, the balance of tons of each account, and the amount of moneys held within each account.
II. Escrow accounts may be used to satisfy the portion of any offset requirement that exceeds a ratio of 1:1 but shall not be used to satisfy the portion of any requirement which is less than or equal to 1:1. Escrow accounts may also be used to satisfy past-due RACT requirements, but the balance, in tons, in any such escrow account shall annually decrease by at least 20 percent of the original amount through the purchase of ERCs, DERs, or other emissions reduction mechanisms. The balance of any such escrow account shall be kept in tons, and the balance of each such account shall be increased by one percent at the end of each month.
III. The establishment, maintenance, operation, and termination of such escrow accounts shall be permitted in accordance with rules adopted by the commissioner pursuant to this chapter. The commissioner shall require that, at the end of each month, money shall be held within each such escrow account equal to at least 110 percent of the current market price per ton of ERCs, DERs, or other emissions reduction mechanisms times the balance, in tons, of that escrow account. Current market prices shall be determined by the commissioner.

Source. 1996, 230:9, eff. July 1, 1996.

Section 125-J:12

    125-J:12 Rulemaking Authority; Submission. –
I. Notwithstanding RSA 541-A, the commissioner shall adopt special temporary rules not subject to RSA 541-A as expeditiously as possible after July 1, 1996, except that the department shall hold a public hearing on the proposed special temporary rules and shall provide the public with notice of the hearing and an opportunity to testify and comment in writing, in accordance with the terms of the notice. The commissioner shall submit proposed rules pursuant to RSA 541-A as expeditiously as possible after the issuance of Environmental Protection Agency guidance. Such temporary and permanent rules shall include, but not be limited to, the following:
(a) The forms and information required on applications for the certification of emissions reduction credits.
(b) The methods to be used to determine that emissions reductions by all eligible sources and devices are real, surplus, quantifiable, enforceable, and permanent for the life of the credit.
(c) The allowable emissions controls for use in achieving emissions reductions, including, but not limited to, early implementation of future emissions controls and seasonal controls.
(d) The criteria for the modification, suspension, and revocation of an emissions reduction credits certificate.
(e) The data and information required for the monitoring of ERCs.
(f) Public notice and hearing procedures for the certification and revocation of emissions reduction credits.
(g) Interstate trading of emissions reduction credits.
(h) Procedures for implementing trading and banking programs for all emissions reduction credit mechanisms.
II. Any proposed special temporary rules to be adopted under paragraph I shall be submitted for review and recommendation to the air pollution advisory committee and the air resources council at least 30 days prior to adoption. Any proposed rules to be adopted pursuant to RSA 541-A shall be submitted to the air pollution advisory committee for review and recommendation at least 30 days prior to filing a notice of proposed rule with the director of legislative services under RSA 541-A:6. Any proposed allocations of any emissions reduction mechanisms pursuant to RSA 125-J:4-b shall be submitted to the air pollution advisory committee for review and recommendation at least 30 days prior to the allocation.

Source. 1994, 397:2. 1995, 262:3. 1996, 230:10, 11. 1998, 207:3. 1999, 46:4, 5, eff. May 21, 1999.

Section 125-J:13

    125-J:13 Repealed by 2010, 59:2, II, eff. Jan. 1, 2014. –

Section 125-J:14

    125-J:14 Repealed by 2010, 59:2, III, eff. Jan. 1, 2014. –