(1) Proposed source project netting out of applicability. The applicant shall, as part of a permit application for any significant source project that does not result in a significant net emission increase, identify each emission unit from which an ERC was used in a net emission increase determination of non-applicability in accordance with the requirements of section 231-2.7 of this Subpart. This shall include the name of the emission unit, emission unit identification number, and the mechanism proposed to effect the ERC (i.e., emission unit shutdown, source reduction, curtailment, over-control of emissions beyond an acceptable limit).

(2) Proposed source project or proposed major facility subject to this Subpart. As part of a permit application for a proposed source project or proposed major facility subject to this Subpart, the applicant shall:

(1) submit a list of offset sources (facilities) from which ERCs of VOC or NO_x will be used as part of an internal offset or a required emission offset. This list must include the name and location of the facility, DEC identification number (if applicable), and the emission reduction mechanism (i.e., facility shutdown, emission unit shutdown, source reduction, curtailment, over-control of emissions beyond an applicable limit). If a part or all of the list is submitted or if the list changes, after the department's Notice of Complete Application, then a supplemental public notice and a 30-day comment period in accordance with section 231-2.10(c)(1) of this Subpart shall be required;

(2) submit a Use of Emission Reduction Credits Form (duly completed and signed by the applicant and an authorized representative of the seller facility) to the department for each offset source listed in paragraph (1) of this subdivision. Upon issuance of the permit for the proposed source project or proposed major facility, the NYS ERC Registry will be amended to reflect that the ERCs are committed to the proposed project or facility;

(3) submit a copy of each modified permit establishing emission reduction credits, only for future reductions as defined in section 231-2.1 of this Subpart; and

(4) for emissions of VOC or NO_x in an ozone nonattainment area, comply with the contribution demonstration required in section 231-2.9(e) of this Subpart.

(1) the original ERC certificate(s) to document procurement of sufficient ERCs for required emission offsets. The original certificate(s) must be sent to the department at the address shown on the reverse side of the certificate. Copies of such certificates must also be sent to the appropriate department regional office;

(2) any changes to the list of offset sources included in the permit issued in subdivision (b) of this section. For each such change, the applicant must submit another Use of Emission Reduction Credits Form signed by the applicant and an authorized representative of the new offset source; and

(3) no less than 10 working days prior to the date the proposed source project or proposed major facility commences operation, a letter stating that the future reductions (as defined in section 231-2.1 of this Subpart) identified in the list of offset sources have physically occurred.

Once the project commences operation, the ERCs will be deemed to be used and the Registry will be amended accordingly.

(1) construction is not commenced within 18 months from the date of issuance, excluding any period of time that the permit modification or preconstruction permit is subject to challenge in State or Federal court;

(2) construction is discontinued for a period of 18 months or more, excluding any period of time that the permit is subject to challenge in State or Federal court; or

(3) construction is not completed within a reasonable time acceptable to the department.

The department may extend the 18 month period upon a satisfactory showing that an extension is justified. This provision does not apply to the time period between construction of the approved phases of a phased construction project; each phase must commence construction within 18 months of the projected and approved commencement date.