S4214

An Act concerning greenhouse gas emissions, supplementing Title 26 of the Revised Statues, and amending various parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) a. The Legislature finds and declares that:

(1) greenhouse gases in the atmosphere may reasonably be anticipated both to endanger public health and to endanger public welfare;

(2) air pollution should now reasonably be understood to include greenhouse gases such as carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride;

(3) the body of scientific evidence compellingly supports the finding that greenhouse gases endanger public health and welfare, including the major assessments by the U.S. Global Climate Research Program, the Intergovernmental Panel on Climate Change, and the National Research Council;

(4) elevated concentrations of greenhouse gases and associated climate change affect public health by causing changes in air quality, increases in temperatures, changes in extreme weather events, increases in food- and water-borne pathogens, and changes in aeroallergens;

(5) increases in ambient ozone are expected to occur over broad areas of the country, and they are expected to increase serious adverse health effects in large population areas, including the State of New Jersey, that are and may continue to be in nonattainment;

(6) the impact on mortality and morbidity associated with increases in average temperatures, which increase the likelihood of heat waves, also provides support for a public health endangerment finding;

(7) the evidence concerning how human-induced climate change may alter extreme weather events also clearly supports the finding that greenhouse gases endanger public health and welfare, given the serious adverse impacts that can result from such events and the increase in risk, even if small, of the occurrence and intensity of events such as hurricanes and floods;

(8) public health is expected to be adversely affected by an increase in the severity of coastal storm events due to rising sea levels;

(9) water resources across large areas of the country are at serious risk from climate change, with effects on water supplies, water quality, and adverse effects from extreme events such as floods and droughts;

(10) climate change is expected to result in an increase in electricity production, especially supply for peak demand, which may be exacerbated by the potential for adverse impacts from climate change on hydropower resources as well as the potential risk of serious adverse effects on energy infrastructure from extreme events;

(11) the body of evidence points towards increasing risk of net adverse impacts on U.S. food production and agriculture over time, with the potential for significant disruptions and crop failure in the future; and

(12) finally, the Legislature places weight on the fact that certain groups, including children, the elderly, and the poor, are most vulnerable to these climate-related effects.

b. The Legislature therefore determines that it is in the public interest for the State to establish programs to regulate greenhouse gases as air pollutants.

2. (New section) a. As used in this section:

“Greenhouse gas” means the same as the term is defined in section 3 of P.L.2007, c.112 (C.26:2C-39).

“Major facility” means the same as the term is defined in section 2 of P.L.1954, c.212 (C.26:2C-2).

“Statewide greenhouse gas emissions” means the same as the term is defined in section 3 of P.L.2007, c.112 (C.26:2C-39).

“Stationary source” means any source of air contaminant or greenhouse gas emissions, except for a mobile source, nonroad engine, or nonroad vehicle.

“Zero emission vehicle” means the same as the term is defined in section 2 of P.L.2003, c.266 (C.26:2C-8.16).

b. No later than 18 months after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Department of Environmental Protection shall, in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations to:

(1) establish Statewide greenhouse gas emissions standards, which are consistent with the State’s greenhouse gas emission reduction targets, including, but not limited to, the targets in section 4 of P.L.2007, c.112 (C.26:2C-40);

(2) establish greenhouse gas emission standards for stationary sources under the “Air Pollution Control Act (1954),” P.L.1954, c.212 (C.26:2C-1 et seq.) for sources including, but not limited to, major facilities, power plants, industrial facilities, oil refineries, and large electricity generation units;

(3) establish any other standards, including low carbon transportation fuel standards or zero emission vehicle sales requirements, necessary to ensure that the State’s greenhouse gas emission reduction targets, including, but not limited to, the targets in section 4 of P.L.2007, c.112 (C.26:2C-40), are met.

c. As much as is practicable, the standards adopted pursuant to this section shall be consistent with similar standards adopted by the State of California.

3. Section 2 of P.L.1954, c.212 (C.26:2C-2) is amended to read as follows:

2. As used in [this act] P.L.1954, c.212 (C.26:2C-1 et seq.):

“Air contaminant” means any substance, other than water or distillates of air, present in the atmosphere as solid particles, liquid particles, vapors, or gases[;] .

“Air pollution” means the presence in the outdoor atmosphere of one or more air contaminants in such quantities and duration as are, or tend to be, injurious to human health or welfare, animal or plant life, or property, or would unreasonably interfere with the enjoyment of life or property throughout the State and in those areas of the State as shall be affected thereby, and excludes all aspects of an employer-employee relationship as to health and safety hazards[;] .

“Antimicrobial pesticide” means a product that destroys or repels, or prevents or mitigates the growth of, any bacteria, fungus, virus or other micro-organism that is defined as a pest pursuant to 7 U.S.C. s.136w (c)(1), and includes any product required to be registered as an antimicrobial pesticide pursuant to the “Federal Insecticide, Fungicide and Rodenticide Act,” 7 U.S.C. s.136 et seq.[;]

“Commissioner” means the Commissioner of Environmental Protection[;] .

“Construct” or “construction” means to fabricate or erect equipment or control apparatus at a facility where it is intended to be used, but shall not include the dismantling of existing equipment or control apparatus, site preparation, or the ordering, receiving, temporary storage, or installation of equipment or control apparatus. Unless otherwise prohibited by federal law, “construct” or “construction” shall also not include the pouring of footings or placement of a foundation where equipment or control apparatus is intended to be used[;] .

“Consumer Price Index” or “CPI” means the annual Consumer Price Index for a calendar year as determined year to year using the decimal increase in the September through August, 12-month average for the previous year of the Consumer Price Index for All Urban Consumers (CPI-U), as published by the United States Department of Labor[;] .

“Control apparatus” means any device that prevents or controls the emission of any air contaminant[;] .

“Council” means the Clean Air Council created pursuant to section 3 of P.L.1967, c.106 (C.26:2C-3.2)[;] .

“Department” means the Department of Environmental Protection[;] .

“Emission fee” means an annual fee that is based on the emission of any regulated air contaminant[;] .

“Emission statement” means an annual reporting of actual emissions of air contaminants as prescribed by rules and regulations therefor that shall be adopted by the department pursuant to the “Administrative Procedure Act, “ P.L.1968, c.410 (C.52:14B-1 et seq.)[;] .

“EPA” means the United States Environmental Protection Agency[;] .

“Equipment” means any device capable of causing the emission of an air contaminant either directly or indirectly into the outdoor atmosphere, and any stack, chimney, conduit, flue, duct, vent, or similar device connected or attached to, or serving, the equipment, and shall include, but need not be limited to, any equipment in which the preponderance of the air contaminants emitted is caused by a manufacturing process[;] .

“Excess greenhouse gas emissions” means Statewide greenhouse gas emissions which exceed the limits established in section 4 of P.L.2007, c.112 (C.26:2C-40) or the interim benchmarks adopted pursuant to section 5 of P.L.2007, c.112 (C.26:2C-41).

“Facility” means the combination of all structures, buildings, equipment, control apparatus, storage tanks, source operations, and other operations that are located on a single site or on contiguous or adjacent sites and that are under common control of the same person or persons. Research and development facilities that are located with other facilities shall be considered separate and independent entities for the purposes of complying with the operating permit requirements of P.L.1954, c.212 (C.26:2C-1 et seq.) or any codes, rules, or regulations adopted pursuant thereto[;] .

“Federal Clean Air Act” means the federal “Clean Air Act” (42 U.S.C.s.7401 et seq.) and any subsequent amendments or supplements to that act[;] .

“Grandfathered” means construction, reconstruction, or modification of equipment or control apparatus prior to the date of enactment of section 13 of P.L.1967, c.106 (C.26:2C-9.2) on June 15, 1967, or prior to the subsequent applicable revisions to rules and regulations codified at N.J.A.C.7:27-8.1 et seq. that occurred March 5, 1973, June 1, 1976, April 5, 1985, and October 31, 1994[;] .

“Greenhouse gas” means the same as the term is defined in section 3 of P.L.2007, c.112 (C.26:2C-39).

“HAP” or hazardous air pollutant” means any air pollutant listed in or pursuant to subsection (b) of section 112 of the federal Clean Air Act (42 U.S.C. s.7412)[;] .

“Hospital or medical disinfectant” means an antimicrobial product registered with the United States Environmental Protection Agency that qualifies to bear the name or claim to be a “hospital or medical environment disinfectant” pursuant to United States Environmental Protection Agency guidelines published pursuant to 7 U.S.C. s.136a (c)(2)(A), and shall include, but shall not be limited to, antimicrobial pesticides used in hospitals, doctor and dentist offices, and other medical environments[;] .

“Install” or “installation” means to carry out final setup activities necessary to provide equipment or control apparatus with the capacity for use or service, and shall include, but need not be limited to, connection of equipment or control apparatus, associated utilities, piping, duct work, or conveyor systems, but shall not include construction or reconfiguration of equipment or control apparatus to an alternate configuration specified in a permit application and approved by the department[;] .

“Major facility” means a major source, as that term is defined by the EPA in rules and regulations adopted pursuant to the federal Clean Air Act at 40 CFR 70.2 or any subsequent amendments thereto, that has the potential to emit any of the air contaminants listed below in an amount that is equal to or exceeds the applicable major facility threshold levels as follows:

Air Contaminant Threshold level

Carbon monoxide 100 tons per year

Particulate matter (PM-10) 100 tons per year

Total suspended particulates 100 tons per year

Sulfur dioxide 100 tons per year

Oxides of nitrogen 25 tons per year

VOC 25 tons per year

Lead 10 tons per year

Any HAP 10 tons per year

All HAPs collectively 25 tons per year

Any other air contaminant 100 tons per year[;] .

“Modify” or “modification” means any physical change in, or change in the method of operation of, existing equipment or control apparatus that increases the amount of any air contaminant emitted by that equipment or control apparatus or that results in the emission of any air contaminant not previously emitted, but shall not include normal repair and maintenance[;] .

“Operating permit” means the permit described in Title V of the federal Clean Air Act (42 U.S.C. s.7661 et seq.)[;] .

“Person” means an individual, public or private corporation, company, partnership, firm, association, society, joint stock company, international entity, institution, county, municipality, state, interstate body, the United States of America, or any agency, board, commission, employee, agent, officer, or political subdivision of a state, an interstate body, or the United States of America[;] .

“Potential to emit” means the same as that term is defined by the EPA in rules and regulations adopted pursuant to the federal Clean Air Act at 40 CFR 70.2 or any subsequent amendments thereto[;] .

“Process unit” means equipment assembled to produce intermediate or final products. A process unit can operate independently if supplied with sufficient feed or raw materials and sufficient storage facilities for the product. The storage and transfer of product or raw materials to and from the process unit shall be considered separate from the process unit for the purposes of making reconstruction determinations. Product recovery equipment shall be considered to be part of the process unit, not part of the control apparatus[;] .

“Reconstruct” or “reconstruction” means the replacement of parts of equipment included in a process unit, or the replacement of control apparatus, if the fixed capital cost of replacing the parts exceeds both of the following amounts: (1) Fifty percent of the fixed capital cost that would be required to construct a comparable new process unit or control apparatus; and (2) $80,000 (in 1995 dollars) adjusted by the Consumer Price Index[;] .

“Regulated air contaminant” means the same as the term “regulated air pollutant” as defined by the EPA in rules and regulations adopted pursuant to the federal Clean Air Act at 40 CFR 70.2 or any subsequent amendments thereto[;] .

“Research and development facility” means any facility the primary purpose of which is to conduct research and development into new processes and products, including academic and technological research and development, provided that such a facility is operated under the close supervision of technically trained personnel and is not engaged in the manufacture of products for commercial sale, except in a de minimis manner[; and] .

“Statewide greenhouse gas emissions” means the same as the term is defined in section 3 of P.L.2007, c.112 (C.26:2C-39).

“VOC” or “volatile organic compound” means the same as that term is defined by the EPA in rules and regulations adopted pursuant to the federal Clean Air Act at 40 CFR 51.100 or any subsequent amendments thereto.

(cf: P.L.1999, c.100, s.1)

4. Section 8 of P.L.1954, c.212 (C.26:2C-8) is amended to read as follows:

8. a. The department shall have power to formulate and promulgate, amend, and repeal codes and rules and regulations preventing, controlling, and prohibiting air pollution and excess greenhouse gas emissions throughout the State or in such territories of the State as shall be affected thereby, except as provided in subsection b. of this section; provided, however, that no such code, rule, or regulation and no such amendment or repeal shall be adopted except after public hearing to be held after 30 days’ prior notice thereof by public advertisement of the date, time and place of such hearing, at which opportunity to be heard by the department with respect thereto shall be given to the public; and provided, further, that no such code, rule, or regulation and no such amendment or repeal shall be or become effective until 60 days after the adoption thereof as aforesaid. Any person heard at such public hearing shall be given written notice of the determination of the department.

All codes, rules, and regulations heretofore adopted by the Air Pollution Control Commission shall continue in full force and effect subject to the power of the department to amend and repeal such codes, rules and regulations as provided by [this act] P.L.1954, c.212 (C.26:2C-1 et seq.).

b. Unless otherwise required by federal law, rule or regulation, no code, regulation, rule, or standard may be adopted by the department that diminishes the efficacy of a hospital or medical disinfectant in killing or inactivating agents of infectious diseases, including, but not limited to, restrictions on the volatile organic compound content or emissions caused by the use of such products. No federal requirement to reduce volatile organic compound content or emissions in general may be construed to permit the department to regulate the volatile organic compounds found in, or released in the use of, a hospital or medical disinfectant, unless the federal law, rule, or regulation establishing the federal requirement specifically requires the reduction of volatile organic compounds found in, or released in the use of, hospital or medical disinfectants.

c. No later than 18 months after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the department shall adopt rules and regulations, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), which incorporate greenhouse gas emissions limits into the department’s operating permit requirements adopted pursuant to P.L.1954, c.212 (C.26:2C-1 et seq.) and include any other restrictions on greenhouse gas emissions deemed by the department to be necessary for the State to meet the requirements of section 4 of P.L.2007, c.112 (26:2C-40).

(cf: P.L.1999, c.100, s.2)

5. Section 9 of P.L.1954, c.212 (C.26:2C-9) is amended to read as follows:

9. a. The department shall conduct ambient air quality tests, on at least a monthly basis and wherever possible in conjunction with the county college or other county facility, which are representative of every county of the State. The department shall report the results of these tests to the county health officers, the Legislature, and the news media.

b. The department shall control air pollution and excess greenhouse gas emissions in accordance with the provisions of any applicable code, rule, or regulation promulgated by the department and for this purpose shall have power to:

(1) Conduct and supervise research programs for the purpose of determining the causes, effects, and hazards of air pollution;

(2) Conduct and supervise Statewide programs of air pollution control education including the preparation and distribution of information relating to air pollution control;

(3) Require the registration of persons engaged in operations that may result in air pollution or excess greenhouse gas emissions and the filing of reports, including but not limited to emission statements, by them containing information relating to location, size of outlet, height of outlet, rate and period of emission and composition of effluent, and such other information as the department shall prescribe to be filed relative to air pollution or excess greenhouse gas emissions, all in accordance with applicable codes, rules, or regulations established by the department;

(4) Enter and inspect any building or place, except private residences, for the purpose of investigating an actual or suspected source of air pollution or excess greenhouse gas emissions and ascertaining compliance or noncompliance with any codes, rules, or regulations of the department. Any information, other than actual or allowable air contaminant emissions or greenhouse gas emissions, relating to secret processes or methods of manufacture or production obtained in the course of an inspection, investigation, or determination, shall be kept confidential and shall not be admissible in evidence in any court or in any other proceeding except before the department. If samples are taken for analysis, a duplicate of the analytical report shall be furnished promptly to the person suspected of causing air pollution or excess greenhouse gas emissions;

(5) Receive or initiate complaints of air pollution or excess greenhouse gas emissions, hold hearings in connection with air pollution or greenhouse gas emissions, and institute legal proceedings for the prevention of air pollution or excess greenhouse gas emissions and for the recovery of penalties, in accordance with P.L.1954, c.212 (C.26:2C-1 et seq.);

(6) With the approval of the Governor, cooperate with, and receive funds or other assistance from, the federal government, the State government, any interstate body, or any county or municipal government, or from private sources, for the study and control of air pollution or excess greenhouse gas emissions;

(7) Charge, in accordance with a fee schedule that shall be adopted by the department pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), (a) reasonable annual emission fees for major facilities as provided in section 5 of P.L.1995, c.188 (C.26:2C-9.5), and (b) administrative fees for any of the services the department performs or provides in connection with administering P.L.1954, c.212 (C.26:2C-1 et seq.). The administrative fees charged by the department pursuant to this subsection shall not exceed $25,000 per application based on criteria contained in the fee schedule;

(8) Issue, renew, reopen, and revise operating permits, and require any person who is required to obtain an operating permit under the provisions of the federal Clean Air Act to obtain an operating permit and to certify compliance therewith for all air pollution sources; and

(9) Establish, implement, and operate a small business stationary source technical and environmental compliance assistance program as required pursuant to 42 U.S.C. 7661f of the federal Clean Air Act.

(cf: P.L.1995, c.188, s.3)

6. Section 13 of P.L.1967, c.106 (C.26:2C-9.2) is amended to read as follows:

13. a. No person shall construct, reconstruct, install, or modify equipment or control apparatus and then use or cause to be used that equipment or control apparatus except in accordance with P.L.1954, c.212 (C.26:2C-1 et seq.) and the rules and regulations adopted pursuant thereto.

b. No operating permit, operating permit revision, or operating certificate or renewal thereof shall be issued unless the applicant demonstrates that the equipment or control apparatus will operate, or operates, in accordance with the provisions of P.L.1954, c.212 (C.26:2C-1 et seq.) and the rules and regulations adopted pursuant thereto.

c. Newly constructed, reconstructed, or modified equipment and control apparatus shall incorporate advances in the art of air pollution control as developed for the kind and amount of air contaminant emitted by the applicant’s equipment and control apparatus as provided in this subsection.

(1) For equipment and control apparatus with a potential to emit any hazardous air pollutant equal to or greater than the de minimis levels specified by the EPA pursuant to subsection (g) of section 112 of the federal Clean Air Act (42 U.S.C. 7412) or with a potential to emit five tons per year or more of any other air contaminant, the applicant shall document advances in the art of air pollution control in accordance with the following criteria, as applicable:

(a) For an air contaminant subject to the prevention of significant deterioration technology requirement, advances in the art of air pollution control shall be the best available control technology (BACT) as set forth by the EPA at 40 CFR 52.21 (b)(12) or any subsequent amendments thereto;

(b) For an air contaminant subject to a significant emissions increase of a non-attainment air contaminant in a non-attainment area, advances in the art of air pollution control shall be the lowest achievable emission rate (LAER) as set forth by the EPA at 40 CFR 51.165(a)(1)(xiii) or any subsequent amendments thereto;

(c) For a hazardous air pollutant technology requirement, advances in the art of air pollution control shall be the maximum achievable control technology (MACT) as set forth at 42 U.S.C. 7412 or any subsequent amendments thereto; and

(d) For other air contaminants, advances in the art of air pollution control means up-to-date technology and methods, reflected in equipment, control apparatus, and procedures, that when applied to an emission source shall reasonably minimize air contaminant emissions. The technology shall have been demonstrated for similar air contaminant discharge parameters to be reliable and shall be available at reasonable cost commensurate with the reduction in air contaminant emissions.

(2) For equipment and control apparatus with a potential to emit hazardous air pollutants at less than the de minimis levels specified by the EPA pursuant to subsection (g) of section 112 of the federal Clean Air Act (42 U.S.C. 7412) and with a potential to emit less than five tons per year of any other air contaminant, the applicant need not document advances in the art of air pollution control, but shall document compliance with:

(a) reasonably available control technology as defined in rules and regulations that shall be adopted by the department pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.);

(b) applicable new source performance standards; and

(3) (a) In order to promote greater emissions reductions than would otherwise be achieved, the department may adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations that offer a person the option of establishing in an operating permit a 15-year plan for reducing facility emissions beyond minimum air pollution control requirements in lieu of adhering to strict permit review schedules and complying with less effective State requirements. Such a plan shall include schedules setting forth milestones for reducing emissions at the facility. Milestones may be met by reducing emissions at the facility and by providing emissions reduction credits from non-facility sources pursuant to an emissions trading and banking program adopted pursuant to section 8 of P.L.1995, c.188 (C.26:2C-9.8).

(b) The department shall review the achievement of the milestones in the plan no less frequently than every five years when the operating permit is renewed. The department may require the person to submit, as part of the application for renewal of the operating permit, a summary and trend of the actual air contaminant emissions data reported in the facility’s annual emission statements for the previous five years. If the department determines during the approval process for an operating permit renewal that the milestones in the plan have not been met at a facility and that there is no reasonable likelihood that the milestones can or will be met, the department may withdraw the opportunity for the facility to continue pursuant to the plan and shall require instead that the facility comply with the promulgated schedules for all applicable requirements.

(c) The department shall allow a person entering a 15-year plan the option of establishing in that person’s operating permit reduced administrative application requirements for de minimis modifications of equipment and control apparatus at the facility, provided that: any increase in allowable emissions for any individual equipment and control apparatus is below de minimis levels defined by rule or regulation adopted by the department pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.); and, as part of the five-year achievement review set forth in subparagraph (b) of paragraph (3) of this subsection, the person includes a demonstration that confirms no net emissions increases have occurred at the facility over the previous five years.

(d) The department shall involve in the development of the rules and regulations for the 15-year plan program adopted pursuant to this paragraph representatives of the affected industry, environmental, and public interest groups as well as impacted governmental entities.

(4) Consistent with the provisions of P.L.1991, c.422 (C.13:1D-111 et seq.), the department shall periodically publish, with an opportunity provided for public comment, technology, methods, and performance levels with respect to air pollution control for use by applicants for demonstrating advances in the art of air pollution control.

(a) The department shall, within 18 months after the effective date of P.L.1995, c.188 (C.26:2C-9.5 et al.), publish the first technical manual containing technology, methods, and performance levels that can be used by applicants for demonstrating advances in the art of air pollution control. Public notice of the availability of each draft technical manual shall be published in the New Jersey Register, and each final technical manual shall consider any public comments thereon that are received by the department.

(b) Once the department has published a technical manual for advances in the art of air pollution pursuant to subparagraph (a) of paragraph (4) of this subsection, any application submitted that demonstrates compliance with that technical manual shall be considered to incorporate advances in the art of air pollution control for the source operations covered by the technical manual. The department shall periodically review and update each technical manual as necessary, after providing public notice and opportunity for public comment. If the department amends a technical manual, the new standard shall apply only to applications submitted after the final publication of the amended technical manual.

(c) Instead of relying on a technical manual for advances in the art of air pollution control, an applicant may propose “case-by-case” advances in the art of air pollution control applicable to a specific source operation. If the department determines that the proposal is consistent with the provisions of this subsection, the proposal shall be deemed to constitute advances in the art of air pollution control for that specific source operation.

(d) Advances in the art of air pollution control shall include new source performance standards adopted by the EPA on or after the effective date of P.L.1995, c.188 (C.26:2C-9.5 et al.) and those new source performance standards published as advances in the art of air pollution control pursuant to P.L.1954, c.212 (C.26:2C-1 et seq.).

(5) Before an operating permit, operating permit revision or operating certificate or any renewal thereof is issued, or as a condition of issuance, the department may require the applicant to conduct such tests as are necessary to determine the kind or amount of the air contaminant emitted from the equipment or whether the equipment or fuel or the operation of the equipment is in violation of any of the provisions of P.L.1954, c.212 (C.26:2C-1 et seq.) or of any codes, rules, or regulations adopted pursuant thereto. The tests shall be made at the expense of the applicant and shall be conducted in a manner approved by the department, and the test results shall be reviewed and professionally certified.

(6) Grandfathered equipment or control apparatus shall not be subject to a demonstration of advances in the art of air pollution control.

(7) An operating permit and operating certificate or any renewal thereof shall be valid for a period of five years from the date of issuance, unless sooner revoked for cause by order of the department, and may be renewed upon application to the department.

(8) Upon receipt of an application for the issuance of an operating certificate or any renewal thereof, the department, in its discretion, may issue a temporary operating certificate valid for 90 days or until a five-year operating certificate has been issued or denied.

d. The following are exempt from the provisions of subsections a. and b. of this section:

(1) One or two family dwellings;

(2) A dwelling of six or less family units, one of which is owner occupied;

(3) Equipment or control apparatus that is subject to a general permit issued pursuant to subsection h. of this section; and

(4) Equipment and control apparatus that is de minimis in terms of size or emissions as prescribed in rules and regulations that shall be adopted by the department pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).

e. Except as otherwise prohibited by the EPA pursuant to the federal Clean Air Act, any person who has received or receives a facility-wide permit issued pursuant to the “Pollution Prevention Act,” P.L.1991, c.235 (C.13:1D-35 et seq.) shall be deemed to satisfy the requirement for an operating permit issued pursuant to P.L.1954, c.212 (C.26:2C-1 et seq.).

f. The department may establish policies and procedures for categories of operations that specify the procedures to be followed for obtaining any permit required pursuant to this section.

g. Any requirement solely related to an air contaminant regulated by the department that is not a federally regulated air pollutant or contaminant, or to greenhouse gas emissions, shall be identified in an operating permit as a State-only requirement that would not be federally enforceable.

h. Notwithstanding the provisions of any other law, rule, or regulation to the contrary, the department may issue a general permit in lieu of any permit issued pursuant to this section. Prior to issuing a general permit, the department shall provide public notice and opportunity for public comment.

i. The department may require the reporting and evaluation of emissions information for any air contaminant. However, prior to requiring that such information be included on a permit or regulating any air contaminant not regulated by the EPA pursuant to the federal Clean Air Act, the department shall first make a determination and advise the public of its conclusion that regulating that air contaminant is in the best interest of human health, welfare and the environment, and publish that determination and justification in accordance with the provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).

j. Except as otherwise prohibited by federal law, any person who has submitted to the department an application for a permit to construct, reconstruct, install, or modify equipment or control apparatus may place that equipment or control apparatus on the footings or foundation where it is intended to be used during the pendency of the permit application review process. A person intending to take action authorized pursuant to this subsection shall notify the department, via certified mail, of the intent to undertake the action at least seven days prior to the commencement of the action.

A person who constructs equipment or control apparatus in accordance with this subsection that the department determines is not consistent with applicable State laws, codes, rules, or regulations shall not be subject to civil or criminal penalties for that inconsistent action provided that the person’s actions do not result in the emission of any air contaminants. Any costs incurred by the applicant in connection with such construction may not be used by the applicant as grounds for an appeal of the department’s decision on the permit application.

k. For the purposes of P.L.1954, c.212 (C.26:2C-1 et seq.), the use of VOCs not otherwise listed by the EPA as hazardous air pollutants, or specified by the department pursuant to subsection i. of this section, shall be considered as a single pollutant. These VOCs may be used interchangeably and such use shall not be considered new installation or modification of equipment or control apparatus.

(cf: P.L.1995, c.188, s.4)

7. Section 5 of P.L.2007, c.112 (C.26:2C-41) is amended to read as follows:

5. a. No later than 18 months after the effective date of P.L.2019, c.197, the department shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations establishing a greenhouse gas emissions monitoring and reporting program to monitor and report Statewide greenhouse gas emissions.

b. The rules and regulations adopted pursuant to subsection a. of this section shall identify all significant sources of Statewide greenhouse gas emissions including short-lived climate pollutants, and shall provide for, but need not be limited to, the following:

(1) monitoring and reporting of existing emissions and changes in emissions over time from the sources identified by the department;

(2) reporting the levels of those emissions and changes in those emissions levels annually, commencing 18 months after the effective date of P.L.2019, c.197; and

(3) monitoring progress toward the 2020 limit and the 2050 limit and any interim limits.

c. Pursuant to the rules and regulations adopted pursuant to subsection a. of this section, the department shall require reporting of the greenhouse gas emissions:

(1) associated with fossil fuels used in the State, as reported by entities that are manufacturers and distributors of fossil fuels, which may include, but need not be limited to, oil refineries, oil storage facilities, natural gas pipelines, and fuel wholesale and retail distributors;

(2) from any entity generating electricity in the State and from any entity that generates electricity outside the State that is delivered for end use in the State. With respect to electricity generated outside the State and imported into the State, the department shall determine the emissions from that generation by subtracting the kilowatt-hours of electricity generated in the State from the kilowatt-hours of electricity consumed in the State, and multiplying the difference by a default emissions rate determined by the department;

(3) from any gas public utility as defined in section 3 of P.L.1999, c.23 (C.48:3-51); and

(4) from any additional entities that are significant emitters of greenhouse gases, as determined by the department, and as appropriate to enable the department to monitor compliance with progress toward the 2020 limit and the 2050 limit.

d. No later than 18 months after the department prepares and transmits the report as required pursuant to subsection c. of section 6 of P.L.2007, c.112 (C.26:2C-42), the department shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations establishing interim benchmarks necessary to achieve the 2050 limit, and measures necessary to achieve the 2050 limit and the established interim benchmarks.

e. The department shall adopt rules and regulations as necessary to meet the requirements of section 4 of P.L.2007, c.112 (26:2C-40), including, but not limited to, rules and regulations that restrict the sale and use of fossil fuel types or establish limits on greenhouse gases emitted from any stationary source.

(cf: P.L.2019, c.197, s.3)

8. Section 2 of P.L.2003, c.266 (C.26:2C-8.16) is amended to read as follows:

2. As used in sections 1 through 7 of P.L.2003, c.266 (C.2C:2C-8.15 et seq.):

“Advanced technology partial zero emission vehicle” means a vehicle certified as an advanced technology partial zero emission vehicle pursuant to the California Air Resources Board vehicle standards for the applicable model year;

“California Low Emission Vehicle program” means the [second phase of the] low emission vehicle program [being] implemented in the State of California, pursuant to the provisions of the Federal Clean Air Act and the California Code of Regulations;

“Commissioner” means the Commissioner of Environmental Protection;

“Department” means the Department of Environmental Protection;

“Federal Clean Air Act” means the federal “Clean Air Act,” 42 U.S.C. s.7401 et seq., and any subsequent amendments or supplements to that act;

“Low Emission Vehicle Review Commission” means the commission established by subsection a. of section 5 of P.L.2003, c.266 (C.26:2C-8.19);

“Partial zero emission vehicle” means a vehicle certified as a partial zero emission vehicle pursuant to the California Air Resources Board vehicle standards for the applicable model year;

“State implementation plan” means the State implementation plan for national ambient air quality standards adopted for New Jersey pursuant to the federal Clean Air Act;

“Zero emission vehicle” means a vehicle certified as a zero emission vehicle pursuant to the California Air Resources Board zero emission vehicle standards for the applicable model year, but shall not include an advanced technology partial zero emission vehicle or a partial zero emission vehicle; and

“Zero emission vehicle requirement” means the percentage or number of those vehicles certified as zero emission vehicles pursuant to the California Air Resources Board vehicle standards and required to be delivered by a manufacturer for sale or lease for the applicable model year, and any additional percentages or numbers of advanced technology partial zero emission vehicles or partial zero emission vehicles that may be delivered by a manufacturer for sale or lease to satisfy the zero emission vehicle requirement established by the California Air Resources Board in lieu of vehicles that meet the pure zero emission vehicle standard.

(cf: P.L.2003, c.266, s.2)

9. Section 3 of P.L.2003, c.266 (C.26:2C-8.17) is amended to read as follows:

3. a. Notwithstanding any provision of a State implementation plan submitted by the Department of Environmental Protection to the United States Environmental Protection Agency pursuant to the requirements of the federal “Clean Air Act Amendments of 1990,” 42 U.S.C. s.7403 et seq., to the contrary, the department shall implement the second phase of the California Low Emission Vehicle program in the State beginning on January 1, 2009, except as provided pursuant to sections 6 and 7 of P.L.2003, c.266 (C.26:2C-8.20 and C.26:2C-8.21).

b. The Commissioner of Environmental Protection, within 30 days after a proposed major substantive change to the California Low Emission Vehicle program that, if adopted, would necessitate a corresponding substantive change to the program in New Jersey adopted pursuant to subsection a. of this section, shall provide written notice and a summary of the proposed substantive change to the Senate Environment Committee and the Assembly Environment and Solid Waste Committee, or their successors as designated respectively by the President of the Senate and the Speaker of the General Assembly.

c. The commissioner shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), any rules and regulations necessary to implement the second phase of the California Low Emission Vehicle program in the State beginning on January 1, 2009.

d. No later than 18 months after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the commissioner shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations to implement the California Low Emission Vehicle program as that program exists on the date of enactment of P.L. , c. (pending before the Legislature as this bill), and shall periodically update the rules and regulations to reflect any subsequent changes to the California Low Emission Vehicle program.

(cf: P.L.2003, c.266, s.3)

10. This act shall take effect immediately.

STATEMENT

This bill would direct the Department of Environmental Protection (DEP), within 18 months after the bill’s enactment, to adopt rules and regulations that establish standards for greenhouse gas emissions. The standards would include Statewide greenhouse gas emission standards, standards for stationary sources of greenhouse gas emissions, such as power plants and industrial facilities, and other standards as necessary for the State’s greenhouse gas emissions goals to be achieved. The bill would also codify the finding made by the United States Environmental Protection Agency in 2009 that greenhouse gas emissions endanger public health, safety, welfare, and the environment.

The bill would amend the “Air Pollution Control Act (1954),” P.L.1954, c.212 (C.26:2C-1 et seq.), and the “Global Warming Response Act,” P.L.2007, c.112 (C.26:2C-37 et al.), to authorize the DEP to adopt rules and regulations limiting greenhouse gas emissions. Specifically, the bill would expand the authority given to the DEP to regulate air pollution in the State to also include “excess greenhouse gas emissions,” which is defined by the bill to mean “Statewide greenhouse gas emissions which exceed those of the limits established in section 4 of P.L.2007, c.112 (26:2C-40) or the interim benchmarks adopted pursuant to section 5 of P.L.2007, c.112 (C.26:2C-41).” “Greenhouse gas” is defined by the bill to mean carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and any other gas or substance determined by the DEP to be a significant contributor to the problem of global warming. The bill would direct the DEP to adopt rules and regulations, no later than 18 months after the bill’s enactment, which incorporate greenhouse gas emissions limits into the DEP’s operating permit requirements adopted pursuant to “Air Pollution Control Act (1954),” and include any other restrictions on greenhouse gas emissions deemed by the DEP to be necessary for the State to meet the requirements of the “Global Warming Response Act.”

In addition, the bill would amend the “Global Warming Response Act,” to provide the DEP the authority, under that act, to adopt rules and regulations necessary to achieve the greenhouse gas emissions goals of that act including, but not limited to, restrictions on the sale and use of fossil fuel types or greenhouse gas emissions limits from stationary sources.

Finally, the bill would direct the DEP to adopt rules and regulations, within 18 months after the bill’s enactment, to implement the current low emissions vehicle program in California. The bill would also direct the DEP to periodically update the rules and regulations to reflect any subsequent changes to California’s program.