VOLUNTARY INCENTIVE BASED PROGRAM AGRICULTURAL ERC EMISSION CRITERIA
VOLUNTARY INCENTIVE BASED PROGRAM AGRICULTURAL ERC EMISSION CRITERIA
VOLUNTARY INCENTIVE BASED PROGRAM AGRICULTURAL ERC
EMISSION CRITERIA
Promoting the use of Agricultural Generated
Emission Reduction Credits as a means to ‘pay for’ conservation practices is a
sound approach to addressing the water quality resource (and potentially other
resource concerns). The standard EPA criteria for determining the eligibility
for Emission Reduction Credits (ERC’s) will require special reconsideration for
agricultural sources. The Farm Bureau is in a unique position to recommend
criteria for establishing and encouraging the generation of agriculturally
generated ERC’s. The cornerstone for utilizing ERC’s as a voluntary incentive
based approach is overcome the geographic limitations for marketing the credits
and allowing the generating of credits from the implementation of USDA NRCS
conservation practices for irrigation internal combustion engines and newly
constructed confined animal facilities.
In general, the following criteria is utilized
in analyzing the eligibility of air emission reduction credits for air quality
for banking purposes, the ERC reductions may have to be:
A. Real
B. Surplus
C. Permanent
D. Quantifiable
E. Enforceable
F. Not used for the approval of an Authority to
Construct or as Offsets
G. Based on a Timely Submittal of Application
H. Included in Emissions Inventory
Limitations Based Upon
Geographic Boundaries or Air Basin District Boundaries:
The following discusses each criterion and the
considerations necessary for agricultural sources:
A. Real
These Emission reductions have been created by
the implementation of a USDA NRCS Conservation practice or standard as
identified within the field office technical guidance (FOTC). Such conservation
practices have been developed through the implementation of approved research
that demonstrates the reliability and economic feasibility of the practice,
understanding that in many cases the use or sale of such credits contributes to
the economic feasibility of the practice or standard.
Baseline history is real and the Emission
factors are from widely accepted sources such as the monitoring or USDA NRCS
published sources or independently verifiable research. The implementation of
an approved NRCS practice on a new facility will enable that facility to receive
ERC as an incentive to promote the application of such technology and encourage
the implementation of conservation practices. This is the incentive and a most
unique feature to promote the implementation of a conservation practice. Under
this scenario, baseline emissions may be calculated from the present or proposed
animal unit capacity for a CAFO.
The grower/producer will cooperate with the NRCS
on implementing the practice in a manner that ensures that the reductions are
real.
B. Surplus
Surplus Emission reductions are reductions that
are in excess of those required by any laws, rules, regulations, agreements,
orders or State Implementation Plan. This requires that the Voluntary Incentive
ERC approach be adopted as a means to create ERC’s from exempt agricultural
sources for the benefit of the air resource. Such adoption of standards by the
USDA NRCS in the FOTG will not render such practices ineligible for ERC’s.
C. Permanent
The grower/operator may have to enter into a
long-term contract or other agreement with the NRCS to ensure the permanence of
the reductions. To ensure the permanence of the agreement and the notice of
interested parties, the contract, or a similar document as approved by the NRCS.
Permit to Operate, or a permit not to operate in perpetuity are unacceptable
criteria to enforce permanence. A maximum of 20 years monitoring to ensure
permanence is reasonable and surpasses existing stationary source requirements.
D. Quantifiable
The reduction amounts have been calculated based
on historic crop data, historic fuel use, historic animal units or proposed
animal units. The accuracy of determining Emission reductions will be based
upon the research results and established Emission reductions from the practice.
Validation through monitoring may be required,
but site-specific source tests on agricultural sources may be an impractical
approach.
The agreement may identify
record-keeping/monitoring requirements.
E. Enforceable
The current policy of requiring a permit for
agricultural sources is cumbersome and does not recognize the fluid nature of
agricultural operations. If the District, or other regulatory entity, pursuant
to state or federal laws, is prohibited to permit the emission unit, then a
legal binding agreement shall be sufficient to ensures that the emission
reductions will be provided in accordance with the conservation practice.
F. Not used for the approval of an Authority to Construct or as Offsets
The ERCs generated by this policy for banking
through this shall not have not been used as offsets for the approval of any
other project. In some actions, reductions may be generated that would be used
for projects without having to go through a banking process. “Double Dipping”
should be avoided.
G. Based on a Timely Submittal of Application
Many jurisdictions have requirements for timely
applications, in the San Joaquin Valley UAPCD applications for ERCs must be
received within 180 days of the reduction. The timeliness issue should be based
upon when the practice was fully implemented and proven, not necessarily limited
to a 180-day restriction based upon when the practice was first instituted.
H. Included in Emissions Inventory
In many districts, the source category must have
been included within a base year emissions inventory that identified the source
category, i.e. a specific agricultural operation or process. Historic emissions
inventories use may be fraught with error due to inaccurate science. Historic
Emission inventories may be used as guidance but not as a limitation for the
creation of ERC’s. This is another of the unique features of an agricultural
ERC Voluntary Incentive Program:
Limitations Based Upon Geographic, Basin, or District
Boundaries: Many district have limitations on the distance from where an
Emission reduction was generated to where it may be used. Agricultural
operations are rural in nature, the voluntary incentive based program is
recommended to increase the utility for the use of agriculturally generated
credits across air basin (or District) boundaries, especially since ozone
precursors and other greenhouse gas Emissions are currently globally traded and
have a greater utility the water resource on a broad geographic basis.
