.25 Cancellation of an ACP.

A. An ACP shall remain in effect until:

(1) The ACP reaches the expiration date specified in the ACP agreement;

(2) The ACP is modified by the responsible ACP party and the modification is approved by the Department, as provided in Regulation .24 of this chapter;

(3) The ACP is modified by the Department, as provided in Regulation .24D of this chapter;

(4) The ACP includes a product for which the VOC standard specified in Regulation .04B is modified by the Department in a future rulemaking, and the responsible ACP party informs the Department in writing that the ACP will terminate on the effective date or dates of the modified standard; or

(5) The ACP is canceled under §B of this regulation.

B. The Department shall cancel an ACP if one or more of the following circumstances occur:

(1) The responsible ACP party demonstrates to the satisfaction of the Department that the continuation of the ACP will result in an extraordinary economic hardship;

(2) The responsible ACP party violates the requirements of the approved ACP, and the violation results in a shortfall that is 20 percent or more of the applicable ACP limit (that is, the ACP emissions exceed the ACP limit by 20 percent or more);

(3) The responsible ACP party fails to meet the requirements of the reconciliation of shortfalls plan described under Regulation .23 of this chapter within the time periods specified; or

(4) The responsible ACP party has demonstrated a recurring pattern of violations and has consistently failed to take the necessary steps to correct those violations.

C. The Department may not cancel an ACP under this regulation without first affording the responsible ACP party an opportunity for a public comment hearing under procedures specified by State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, to determine if the ACP should be canceled.

D. The responsible ACP party for an ACP which is canceled under this regulation and who does not have a valid ACP to immediately replace the canceled ACP shall meet all of the following requirements:

(1) All remaining shortfalls in effect at the time of ACP cancellation shall be reconciled under the requirements of Regulation .23 of this chapter; and

(2) All ACP products subject to the ACP shall be in compliance with the applicable VOC limits in Regulations .04—.10 of this chapter immediately on the effective date of ACP cancellation.

E. A violation incurred under Regulation .20 of this chapter may not be canceled or in any way affected by the subsequent cancellation or modification of an ACP.