(a) Alternative option. Notwithstanding any requirement in this subchapter, the owner or operator of Section 185 Accounts obligated to pay a Failure to Attain Fee may submit a request to the executive director to partially or completely fulfill the Failure to Attain Fee obligation with an equivalent alternative obligation in compliance with the requirements with §101.121 and §101.122 of this title (relating to Equivalent Alternative Obligation and Using Supplemental Environmental Project to Fulfill an Equivalent Alternative Obligation, respectively).
  (1) A Failure to Attain Fee obligation from volatile organic compounds (VOC) or nitrogen oxides (NOX ) emissions from Section 185 Accounts not fulfilled under this section will remain separate and due from each regulated entity.
  (2) Fee obligation from VOC and/or NOX emissions not fulfilled under this section will be calculated by the method described in §101.113 of this title (relating to Failure to Attain Fee Obligation).
(b) Failure to Attain Obligation. The entire Failure to Attain Fee obligation is due in accordance with §101.117 of this title (relating to Compliance Schedule) for all Section 185 Accounts not meeting the requirements of §101.121 and §101.122 of this title.
(c) The owner or operator of a Section 185 Account must inform the executive director if they are selecting an equivalent alternative obligation using forms approved by the executive director. The owner or operator of a Section 185 Account must submit a form selecting their equivalent alternative obligation that lists the tons of each pollutant or amount of payment that will meet the fee obligation with the alternative obligation as described in §101.121 and §101.122 of this title.
(d) No later than July 31 in the year following the rule adoption and annually thereafter:
  (1) all equivalent alternatives under §101.121 of this title must be approved, exercised, or otherwise completed; and
  (2) all Supplemental Environmental Projects under §101.122 of this title must be approved and funded.
(e) If the executive director does not receive notification of a selection of equivalent alternative obligation and the equivalent alternative obligation is not approved and funded, exercised, or otherwise completed, the fee payment will be due in full under the provisions of §101.116 of this title (relating to Failure to Attain Fee Payment).

Source Note: The provisions of this §101.120 adopted to be effective June 12, 2013, 38 TexReg 3610