BEFORE THE ILLINOIS POLLUTION CONTROL BOARD REC
D
RK,SS OFFICE
FFICE
JAN 1 9 2006
IN THE MATTER OF :
)
STATE OF ILLINOIS
7,
Pollution Control Board
NOx TRADING PROGRAM :
)
R06->*
AMENDMENTS TO 35 ILL .
)
(Rulemaking - Air)
ADM. CODE PART 217
)
TABLE OF CONTENTS OF REGULATORY SUBMITTAL
Following is a Table of Contents of all pleadings and documents included with the proposed
regulatory action
:
I
.
Notice of Proposal
2
.
Appearance of Rachel Doctors, Assistant Counsel, for the Illinois Environmental
Protection Agency
3
.
Director Douglas Scott's Proposal of Amendments
4 .
Motion for Waiver of Rcquirements
a .
Letter from Rachel Doctors, Assistant Counsel, Illinois EPA, to Virginia
Yang, Deputy Counsel, Department of Natural Resources, dated
December 21, 2005
5 .
Statement of Reasons
6 .
Exhibits to Statement of Reasons
a .
e-mail from John Paskevicz, U.S. EPA to Don Sutton, Manager of
Permits, Illinois EPA, "final CO FCCU boiler policy," dated November
24, 2003
.
b .
NOx Trading Program Subpart W: Schedule for the Fixed/Flex Approach
and Roll-In for New Sources
c
.
Outreach communications
:
i .
Letter from Rachel Doctors, Assistant Counsel, Illinois EPA, to
Jack Darrin, Sierra Club, dated December 16, 2005
.
Letter from Laurel Kroack, Bureau Chief, Bureau of Air, Illinois
EPA, to affected sources, dated December 22, 2004
.
d
.
Letter from Laurel L. Kroack, Chief, Bureau of Air, Illinois EPA to
Katherine D. Hodge, Hodge Dwyer Zeaman, dated December 13, 2005
7 .
Synopsis of Testimony
8 .
Agency's Analysis of Economic and Budgetary Effects of the Proposed
Amendments to 35 111. Admin. Code 217
9 .
Proposed Amendments to 35 Ill. Adm. Code 217 :
The original and nine (9) copies
10
.
Documents Relied Upon (Note: An asterisk (*) indicates documents, five copies
ofeach, that the Agency has provided for the Board in this proposal package .)
a .
Illinois Environmental Protection Act (415 ILCS 5/et . seq .) .
b
.
The Clean Air Act, as amended in 1990 (42 U .S.C. §7401 et seq .) .
c
.
Finding of Significant Contribution and Rulemaking for Certain States in
the Ozone Transport Assessment Group Region for Purposes of Reducing
Regional Transport of Ozone : Final Rule, 63
Fed. Reg.
57356 (October
27, 1998) .
d .
Rule to Reduce Interstate Transport of Fine Particulate Matter and Ozone
(Clean Air Interstate Rule); Revisions to Acid Rain Program; Revisions to
the NOx SIP Call; Final Rule,
70
Fed. Reg.
25162 (May 12, 2005) .
e .
U. S. Bankruptcy Code (I 1 U .S.C. §§362, 363 and 541) .
Approval and Promulgation of Implementation Plans; Illinois NOx
Regulations, Final Rule,
66
Fed. Reg.
56449, November 8, 2001
.
Final Rule to Implement the 8-Hour Ozone National Ambient Air Quality
Standard - Phase 1, 69
Fed. Reg.
23951 at 40 CFR 51 .905(f) (April 30,
2004) .
*f.
g .
h .
State of North Carolina v. EPA,
No. 05-1244 (D.C
. Cir. 2005)
.
j
.
An Act concerning air pollution, P .A. #92-279 (August 7, 2007)
.
k .
An Act concerning air pollution, P .A. #93-669 (March 19, 2004) .
*1 .
Approval of Implementation Plans ; Illinois NOx Regulations, Proposed
Rule, 66
Fed. Reg.
3438 (June 28, 2001)
.
m .
State of West Virginia v. EPA,
No. 02-1181(D .C. Cir. 2004)
.
12
.
Proof of Service
13 .
Diskette containing Proposed Amendments to 35 Ill. Adm. Code 217, in WORD
format .
11 .
Incorporations by Reference
a .
40 CFR 60 Appendix A, Methods 7, 7A, 7C, and 7E, 65
Fed. Reg.
61744,
October 17, 2000 .
b .
40 CFR 60.13, 67
Fed. Reg.
43550, June 28, 2002
.
c .
40 CFR parts 72 and 75, 67
Fed. Reg.
40394, June 12, 2002 .
d .
40 CFR parts 72 and 75 correction, 67
Fed. Reg.
53503, August 16, 2002 .
RECEIVED
CLERK'S OFFICE
BEFORE THE ILLINOIS POLLUTION CONTROL BOARIJAN
1 9 2006
STATE OF
ILLINOIS
IN THE MATTER OF :
)
Pollution Control Board
NOx TRADING PROGRAM :
)
R06-
7'>
AMENDMENTS TO 35 ILL
.
)
(Rulemaking - Air)
ADM. CODE PART 217
)
NOTICE
TO :
Dorothy Gunn, Clerk
Matthew Dunn, Chief
Illinois Pollution Control Board
Attorney General's Office
State of Illinois Center
James R. Thompson Center
100 West Randolph, Suite 11-500
100 West Randolph, 12th Floor
Chicago, Illinois 60601
Chicago, Illinois 60601
SEE ATTACHED SERVICE LIST
PLEASE TAKE NOTICE that I have today filed with the Office of the Pollution
Control Board the REGULATORY PROPOSAL FOR NOx TRADING PROGRAM
:
AMENDMENTS TO 35 ILL. ADM. CODE PART 217, APPEARANCE and MOTION
FOR WAIVER OF REQUIREMENTS of the Illinois Environmental Protection Agency a
copy of which is herewith served upon you .
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
Rachel L. Doctors
Assistant Counsel
Division of Legal Counsel
DATED: January 17, 2006
P.O. Box
19276
Springfield, Illinois 62794-9276
217/782-5544
BEFORE THE ILLINOIS POLLUTION CONTROL BOABIE C E I V E D
CLERK'S OFFICE
IN THE MATTER OF :
)
NO,, TRADING PROGRAM
:
)
R06-
AMENDMENTS TO 35 ILL
.
)
(Rulemaking - Air)
ADM. CODE PART 217
)
APPEARANCE
The undersigned, as one of its attorneys, hereby enters an Appearance on behalf of the
Illinois Environmental Protection Agency
.
DATED: January 17, 2006
P.O. Box 19276
Springfield, Illinois 62794-9276
217/782-5544
JAN 1 9 2006
STATE OF ILLINOIS
Pollution Control Board
ILLINOIS ENVIRONMENTAL PROTECTION
AGENCY
By: L'~j &-~"
Rachel L. Doctors
Assistant Counsel
Division of Legal Counsel
RECEIVED
CLERK'S OFFICE
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
JAN 1 9 2006
STATE OF ILLINOIS
IN THE MATTER OF
:
)
Pollution Control Board
THE NOx TRADING PROGRAM :
)
R06-
AMENDMENTS TO 35 ILL .
)
(Rulemaking - Air)
ADM. CODE PART 217
)
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY PROPOSAL OF
AMENDMENTS
THE ILLINOIS ENVIRONMENTAL PROTECTION AGENCY ("Agency"), pursuant
to 35 Ill. Adm. Code 102.202, moves that the Board accept for hearing the Agency's
proposal for amendment of 35 Ill. Adm. Code Part 217. This regulatory proposal
includes: 1) the proposed amendments; 2) the Statement of Reasons; 3) a statement
regarding an economic impact study ; and 4) an Appearance for the attorney representing
the Illinois EPA
.
Respectfully submitted,
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
By :
DATED :
bece,))h,- o23j Qoos"
P.O. Box 19276
Springfield, Illinois 62794-9276
217/782-3397
Doug
Scott'
Director
RECEIVED
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
JAN 1 9 2006
IN THE MATTER OF :
)
STATE OF
ILLINOIS
Pollution Control Board
NO,, TRADING PROGRAM :
)
R06- >>
AMENDMENTS TO 35 ILL .
)
(Rulemaking - Air)
ADM. CODE PART 217
)
MOTION FOR WAIVER OF REQUIREMENTS
NOW COMES Proponent, the ILLINOIS ENVIRONMENTAL PROTECTION
AGENCY (Illinois EPA), by its attorney, Rachel L . Doctors, pursuant to 35 Ill . Adm. Code
102.110, 102.402, and 101 .500, and moves that the Illinois Pollution Control Board (Board)
waive certain requirements, namely that the Illinois EPA submit an entire copy of the proposal to
the Department of Natural Resources (DNR) and that the Illinois EPA submit the original and
nine copies of all documents upon which it relied . In support of its Motion, the Illinois EPA
states as follows
:
1
.
Section 102 .120 of the Board's procedural rules requires that a regulatory
proposal be served on the Department of Natural Resources . On December 20, 2005, the Illinois
EPA discussed the matter with Virginia Yang, Legal Counsel, who agreed that the Illinois EPA
need not supply that office with a copy of the entire proposal, provided that her office be
formally notified that a proposal has been made and where the proposal could be reviewed
.
2 .
The Agency is required to submit copies of the documents incorporated by
reference in the proposed amendments to Part 217 . They are as follows
:
a .
40 CFR 60 Appendix A, Methods 7, 7A, 7C, and 7E, 65 Fed. Reg. 61744,
October 17, 2000 .
b .
40 CFR 60.13, 67Fed. Reg. 43550, June 28, 2002
.
c
.
40 CFR parts 72 and 75, 67 Fed. Reg . 40394, June 12, 2002
.
40 CFR parts 72 and 75 correction, 67
Fed. Reg.
53503, August 16, 2002
.
The above items are readily accessible to the Board . The Agency has supplied five copies of the
documents. Given the ease of accessibility of these documents the Illinois EPA moves that the
requirement that it provide 9 copies of these documents be waived . The Agency's request is
consistent with the Administrative Procedures Act and reasonable in light of the fact that these
documents are quite lengthy and are readily available .
3 .
The Agency is required to submit copies of documents relied upon in the
development of the proposal or upon which it intends to rely at hearing . They are as follows :
a .
Illinois Environmental Protection Act (415 ILCS 5/et. seq.) .
b .
The Clean Air Act, as amended in 1990 (42 U.S.C. §7401 et seq .) .
c
.
Finding of Significant Contribution and Rulemaking for Certain States
in
the Ozone Transport Assessment Group Region for Purposes of Reducing
Regional Transport of Ozone: Final Rule, 63
Fed. Reg.
57356 (October
27, 1998)
.
d .
Rule to Reduce Interstate Transport of Fine Particulate Matter and Ozone
_(Clean Air Interstate Rule); Revisions to Acid Rain Program; Revisions to
the NOx SIP Call; Final Rule, 70
Fed. Reg.
25162 (May 12, 2005)
.
e .
U. S. Bankruptcy Code (11 U.S.C. §§362, 363 and 541) .
*f.
g .
Approval and Promulgation of Implementation Plans ; Illinois NOx
Regulations, Final Rule, 66
Fed. Reg.
56449, November 8, 2001
.
Final Rule to Implement the 8-Hour Ozone National Ambient Air Quality
Standard - Phase I, 69
Fed. Reg.
23951 at 40 CFR 51 .905(f) (April 30,
2004) .
h .
State of North Carolina v. EPA,
No. 05-1244 (D.C. Cir. 2005)
.
j .
An Act concerning air pollution, P.A. #92-279 (August 7, 2007)
.
k.
An Act concerning air pollution, P .A. #93-669 (March 19, 2004) .
Approval of Implementation Plans; Illinois NOx Regulations, Proposed
Rule, 66
Fed. Reg.
3438 (June 28, 2001)
.
m .
State of West Virginia v. EPA,
No. 02-1181(D.C. Cit. 2004).
The above items are readily accessible to or are within the possession of the Board
. The Agency
has supplied five copies of the documents denoted with an asterisk
. Given the accessibility of
these documents, the Illinois EPA moves that the requirement that it provide copies of items
without an asterisk, and that it supply nine copies of the items denoted with an asterisk above
also be waived. Five copies of items with an asterisk will be provided .
WHEREFORE, for the reasons set forth above, the Illinois EPA moves that the Board
waive the requirement that it file the proposal with DNR, and the Illinois EPA provide the Board
with copies of all incorporations by reference and documents relied on at hearing or in the
development of the proposal
.
DATED: January 17, 2006
1021 N. Grand Ave., East
P.O. Box 19276
Springfield, Illinois 62794-9276
217/782-5544
Respectfully submitted,
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
By :
l.
Rachel L. Doctors
Assistant Counsel
Division of Legal Counsel
217/782-5544
December 21, 2005
Virginia I. Yang
Deputy Legal Counsel for the
IL Department of Natural Resources
100 West Randolph 4th FLR
Chicago, IL 60601-3279
Dear Ms. Yang
:
This letter is to confirm our e-mail on December 20, 2005, in which we discussed the proposal
for amendments to Part 217 - Nitrogen Oxides Emissions that the Illinois EPA is developing for
filing with the Pollution Control Board
.
We are proposing amendments to Subparts A, T, U, and W of Part 217 . These proposed
amendments address changes to the Act and Code of Federal Regulations, and administrative
issues that have arisen since the program was adopted in 2000. All three Subparts are part of the
Illinois State Implementation Plan ("SIP") for ozone. Subparts T, U, and W regulate NO x
emissions from large cement kilns, industrial boilers and utilities boilers, respectively
.
Since the federal NO, Trading program was adopted in 2000 and implemented in 2004, the
Illinois General Assembly has amended the provisions of Section 9 .9 of the Act for NOx Trading
to include authority for the Agency to sell certain allowances, to disburse sale proceeds to the
Agency and certain sources, and clarify the compliance date for cement kilns, industrial boilers
and utility boilers. USEPA has amended several test methods and monitoring provisions . In
addition, several areas of the rules need to be updated to reflect changes in ownership of
companies and changes in fixed allocations, to exempt CO boilers, to simplify the administration
of the program, and to address issues that have arisen since the program was implemented
.
In our conversation, you agreed that the Illinois EPA need not serve the Department of Natural
Resources. The Agency will send you copies of the proposed amendments and the Statement of
Reasons of the submittal at the time it is filed with the Board . The Agency will provide the
Department with whatever other information or documents that you may need after you have
reviewed the documents
.
ROCKFORD-4302 North Main Street, Rockford, IL 61103-(815) 987-7760
•
DES PLAINES-9511 W. Harrison St., Des Plaines, IL 60016-(847) 294-4000
ELGIN-595 South State, Elgin . IL 60123-(847) 608-3131
•
PEORIA-5415 N. University St., Peoria, IL 61614-(309, 693-5463
OF LAND - PEORIA- 7620 N . University St., Peoria, IL 61614-(309) 693-5462
•
CHAMPAIGN-2125 South First Street, Champaign . IL 61820-(217) 278-5800
SPRINGFIELD-4500 5 . Sixth Street Rd., Springfield. IL 62706 -(217) 786-6892
•
COLLINSvILLE-2009 Mall Street, Collinsville, IL 622234-(618) 346-5120
Nt+R:O%-2309 \V. Main St ., Suite 116, Marion, IL 62959-(618) 993-7200
-
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
1021 NORTH GRAND AVENUE EAST, P.O. Box 19276, SPRINGFIELD, ILLINOIS 62794-9276
- (
217)
782-3397
JAMES
R .
THOMPSON CENTER, 100 WEST RAN DOLPH, SUITE 11-300, CHICAGO, IL 60601 - (312) 814-6026
ROD R
.
BLAGOJEVICH, GOVERNOR
DOUGLAS
P. SCOTT,
DIRECTOR
We sincerely appreciate your cooperation in this matter . If you have any questions, please do not
hesitate to call me
.
Sincerely,
Rachel Doctors
Assistant Counsel
Division of Legal Counsel
BEFORE THE ILLINOIS POLLUTION CONTROL BOAL E C E 1 V E D
LEFtK'S OFFICE
JAN 1 9 2006
IN THE MATTER OF :
)
STATE OF
ILLINOIS
Pollution Control Board
THE NOx TRADING PROGRAM
:
)
R06-
AMENDMENTS TO 35 ILL
.
)
(Rulemaking - Air)
ADM. CODE PART 217
)
STATEMENT OF REASONS
The Illinois Environmental Protection Agency ("Illinois EPA" or "Agency") hereby
submits this Statement of Reasons to the Illinois Pollution Control Board ("Board") pursuant to
Sections 27 and 28 of the Environmental Protection Act ("Act")
.
See, 415 ILCS 5/27 and
28)(Document Relied Upon a)("DR a") and 35 III. Adm. Code 102.202(b), in support of the
attached proposed amendments. Included in this proposal are amendments to 35 Ill . Adm. Code
Part 217, Subparts A, T, U, and W. This proposal amends the most recent version of Part 217 as
found on the Board's website
.
I .
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY'S PROPOSAL
a .
Background
Subparts T, U, and W of Part 217 were adopted by the Board on December 21, 2000,
March 1, 2001, and April 5, 2001, respectively . All three Subparts received approval by the
United States Environmental Protection Agency ("USEPA"), as part of the Illinois State
Implementation Plan ("SIP") for ozone on November 8, 2001 . See, 66 Fed. Reg. 56449 (DR f) .
Subparts T, U, and W regulate NO, emissions from large cement kilns, industrial boilers and
utilities boilers, respectively. Illinois was required to regulate these sources pursuant to the NO,
SIP call
.
. See, 63Fed. Reg. 57356 (October 27, 1998) (DR c) . Subparts U and W implement the
NO, Trading Program in Illinois to reduce ozone transport, meeting Illinois' obligations pursuant
to Sections 110(a)(2) and 126 of the Clean Air Act . The on-going emission reductions also
enable the two ozone nonattainment areas in Illinois make progress toward attaining the 8-hour
ozone and PM 2.5 National Ambient Air Quality Standards ("NAAQS"). In addition, the NOx
Trading program is required under Phase I of the 8-hour ozone implementation rule to ensure a
smooth transition to the 8-hour ozone NAAQS . See, 40 CFR 51.905(f) (DR g)
.
Since the federal NO, Trading program was adopted in 2000 and implemented in 2004,
USEPA has amended several applicable test methods and monitoring provisions . In addition,
several areas of the rules need to be updated to reflect changes in ownership of companies and
changes in fixed allocations, to simplify the administration of the program, and to address issues
that have arisen since the program was implemented, e .g., adoption of procedures for the sale of
certain NOx allowances. These changes are discussed below .
b .
Update of Incorporations by Reference ("IR")
USEPA has updated several of the incorporations by reference listed in Section 217.104 .
Specifically, USEPA amended the procedures and test methods as set forth in 40 CFR 60,
Appendix A, Methods 7, 7A, 7C, and 7E, as well as 40 CFR 60 .13. See, 65 Fed. Reg. 61744
(October 17, 2000) (IR a) and 67 Fed. Reg . 43550 (June 28, 2002) (IR b) . USEPA has also
amended 40 CFR parts 72 and 75 on June 12, 2002 and provided corrections on August 16, 2002
as they pertain to the Acid Rain Program and the NO, Trading Program. See, 67Fed. Reg.
40394 (IR c) and 67 Fed. Reg. 53503 (IR d). The most pertinent amendment increased the
threshold for emission units electing to use the low-mass emitter provisions for NO, emissions
Page
2
monitoring. The threshold has been increased from 25 to 50 tons of NO,, per ozone season and
from less than 50 tons of NO, per year to less than 100 tons of NO, per year . Emission units that
elect low-mass emitter status may use alternative monitoring procedures in lieu of the continuous
emissions monitoring. Larger low-mass emitter units, those greater than 25 tons per ozone
season, are still required to participate in the NO, Trading Program
.
Note that on May 12, 2005, 40 CFR 72, 75 and 96 were amended by USEPA as part of its
promulgation of the Clean Air Interstate rule (CAIR), which is currently under review . See State
of North Carolina
v. EPA,
No. 05-1244 (D.C
. Cir. filed July 8, 2005) (DR h)
.
c .
Low-Emitter Exemption
In administering the NO, Trading Program, it has become necessary to amend the low-
emitter exemption procedures in Sections 217 .454, 217 .472, 217.754, 217.760, and 217.774
which allow certain emission units to be exempt from certain requirements of the NO, Trading
Program, namely the requirement to hold NO, allowances. In addition to certain ownership
requirements, only units that restrict their NO, emissions during the control period to 25 tons or
less and restrict the type of fuel used are eligible to elect low-emitter status . The Agency is
clarifying the provisions that apply to non-EGUs subject to Subpart U to ensure that only units
listed in Appendix E are eligible to elect low-emitter status . Also when the election is made, the
unit is limited by permit to the lesser of 25 tons per ozone season or the number of allowances
listed for that unit in Appendix E, unless it obtains a fixed allocation from another Appendix E
unit. This clarification is necessary to ensure that the overall Subpart U budget is not reduced,
which would lead to the fixed allocations specified in Appendix E being reduced, contrary to the
intent of this Section
.
Page
3
In addition, interested parties requested flexibility for allowing new units at existing
sources to become low-emitters . This required adding an option for these new units to obtain a
permanent transfer of allowances from a unit listed in Appendix E . New sources are still
prohibited from electing the low-emitter exemption . When an existing unit requests a permit
limit greater than the fixed limit for that unit in Appendix E or a new unit at an existing source
requests a low-emitter exemption, the owner or operator must obtain a permanent transfer of
allowances from a unit listed in Appendix E . Every three years, the Agency will initiate a
rulemaking to amend Appendices D and E to reflect any changes in the fixed allocations . The
Agency is also adding a clarification to Section 217.468(c)
.
In Subpart W, the Agency is proposing to delete the low-emitter provisions. Under the
federal NOx SIP Call Trading program, the Agency was not required to adopt provisions
allowing units to elect low-emitter status . The Agency believes that because allocations of
allowances occur three years prior to their use, the roll-in of new units five years after they
commence operation, and the 10-year phase-in allocation methodology for existing EGUs, trying
to administer a budget that could decrease added an unnecessary level of complexity. In
addition, the current language allows units to apply for a maximum of 25 tons per control period,
even if the unit has historically had lower emissions. The Agency is then required to reduce the
budget by the permitted amount, rather than the amount that the unit has historically emitted .
Hence, there is a possibility that existing units would be unfairly impacted because the overall
budget available to them would be reduced by an order of magnitude above the actual emissions
from units electing low-emitter status .
d
.
CO boiler exemption
Page
4
Some fluid catalytic cracking units (FCCUs) use boilers to combust and thereby control
carbon monoxide ("CO") and to produce steam for use at refineries. NOx is produced by the
regenerator at the FCCU and by the CO boiler and vents through a single stack . State rule
development considered "industrial boilers" non-EGUs, but excluded FCCUs from calculation of
the NOx budget and from required reductions . The federal NO, SIP Call Trading program
included a definition for boilers that would include these CO boilers . See, 40 CFR 96 .2 (DR c)
.
When the issue was raised by several states, USEPA noted that treatment of CO boilers in the
development of the federal NOx SIP Call Trading program was inconsistent, leading to some
states including these units in their program and others excluding them . Hence, USEPA gave
each state the option of whether to include its large CO boilers . (Exhibit. a) The CO boilers in
Illinois were not included in the State's NO ., SIP Call budget and were not intended by the State
to be included in its NO, Trading Program. The Board did not include these units in Appendix D
or Appendix E. The Illinois EPA is proposing to clarify this position by adding an explicit
exemption in Subpart U, Section 217 .454 for CO boilers
.
e .
Chart of Dates
Several dates are unclear in Subpart W . First, the titles of the subsections in Section
217.764 for the NO, allocations are confusing, as it is unclear whether the year referred to is the
control period or the year in which the unit is given an allocation. The words "control period"
are being added after the year and the language denoting the year of the program is being
eliminated. Second, there appears to be a gap for when allowances from the New Source Set-
asides (NSSAs) may be allocated . Dates that the Agency will allocate allowances to existing
EGUs and new units are being clarified and corrected in Sections 217 .764, 217.766 and 217.768
.
Page
5
Attached is a chart showing the status of the unit (new, existing), when that unit is eligible for
allowances from the NSSA, when the unit will roll into the pool for existing units, and at what
rate. (Exhibit b) Finally, the language requiring sources and the Agency to count 77 days is
confusing and the date "July 16`
h" is being substituted in Sections 217.764 and 217.768
.
f
Amendments to Section 9.9 of the Act
The Illinois General Assembly has amended Section 9 .9 of the Act (Nitrogen oxides
trading system) twice since the Board adopted Subparts T, U and W. On August 7, 2001, the
Illinois General Assembly deleted the provisions in subsection (f) that prohibited enforcement of
the NO, trading provisions in Part 217 until States contiguous to Illinois and those in Region V
had approved NO, Trading Programs . See, P.A. #92-279 (DR j). On March 19, 2004, the Illinois
General Assembly amended Section 9 .9 of the Act by adding new subsection (d-5), (d-10), and
0)
and amending subsections (e), (f), and (h) to give the Illinois EPA the authority to sell certain
NO, allowances, to adopt procedures for these sales, and specified a formula for determining the
price. See, P.A. #93-669 (DR k) . The Agency adopted procedures at 35 Ill. Adm. Code 273 .
The Agency is proposing amendments to part 217 to conform with the amendments to the Act
and the new procedures adopted by the Agency at 35 Ill . Adm. Code 273 .
g .
Forfeiture provisions
Illinois EPA is proposing to address circumstances where allowances cannot be
allocated by the Agency to a budget unit listed in Appendix E and, hence, cannot be used by an
affected budget unit. Under specified circumstances, the Agency would have the ability to
allocate these allowances to different units . The three circumstances where a budget unit listed
Page
6
in Appendix E is eligible for an allocation, but the Agency is unable to allocate to that particular
unit or source are: 1) the owner or operator of the budget unit fails to appoint an account
representative or open a NOx allowance account with USEPA; 2) the source or unit is
permanently shutdown, is not replaced and the permit has been revoked ; and 3) the source or
budget unit is sold and the former owner or operator fails to notify the Agency whether the NO
x
allocation has been transferred to the new owner or operator or another source or unit subject to
the requirements of Subpart U . The amendments would provide that the owner or operator
affected by the first two circumstances must appoint an account representative, open account, or
notify the Agency of the status of the allowances within two years of the date that the Agency is
required to allocate allowances, or the allowances will be reallocated by the Agency to another
affected budget unit. Under the third circumstance, the Agency will allocate the allowances to
the new owner or operator of the unit or source
.
Notwithstanding these provisions, the Agency acknowledges that if an owner or operator
files bankruptcy or an order for relief has been entered in an involuntary bankruptcy case, the
debtor, trustee, or other parties in interest may assert that the owner or operator's interest in the
NOx allowances may be considered property of the estate pursuant to Section 541 (a) of the
Bankruptcy Code. See, 11 U.S.C. §541 (a) (DR e) . Although theses rules are drafted with the
intent not to create a property interest, the Agency acknowledges that it is federal law and not
state law that determine whether an interest of the debtor is property of the estate
.
Consequently, the Agency may not be able to take action to forfeit or transfer the NOx
allowances without the Bankruptcy Court determining that the debtor's interest in the NOx
allowances is not property of the estate or the Bankruptcy Court's entry of an order granting the
Agency's motion for relief from the automatic stay pursuant to Section 362(d) of the Code . See,
Page
7
11 U .S.C. § 362(d) (DR e). Upon the Bankruptcy Court's lifting the automatic stay or finding
that the NOx allowances are not property of the estate, the Agency would take the necessary
action in accordance with nonbankruptcy law to have the NOx allowances forfeited . Should the
Bankruptcy Court determine the NOx allowances are property of the estate or it denies the
Agency's request to lift the automatic stay, the Agency would not initiate the forfeiture
proceeding until the bankruptcy case was either closed or dismissed . While the bankruptcy case
is pending, the Agency would not forfeit or transfer the allowances to another party, absent an
order issued by the Bankruptcy Court pursuant to Section 363 of the Code . See, 1 I U.S.C. § 363
(DR e)
.
Illinois EPA is proposing procedures for notifying the owner or operator that their
allocation has lapsed and giving the owner or operator 30 days to respond and prevent forfeiture.
If the allowances are forfeited, the Agency will reallocate these allowances to one or more
different Illinois budget units. Allowances forfeited because no account representative was
appointed or account was opened or because the source or unit has permanently been shutdown
will be allocated based on heat input to those non-EGUs that are not listed in Appendix E and
that do not receive a fixed allocation . Such eligible units will be given an opportunity to submit
an application requesting these allowances . To the extent that 100 or more allowances remain
after the Agency has allocated them to eligible budget sources pursuant to proposed subsection
(e)(1), the Agency will allocate the allowances to owners or operators of units listed in Appendix
E on a pro-rata basis. Only whole allowances will be allocated, any allowances that remain after
a pro-rata allocation will be retained and allocated in successive control periods . Where a unit or
source has been sold, the allowances will be allocated to the source or unit under new ownership
and the Agency will later propose a rulemaking to amend Appendix E to reflect the change in
Page
8
ownership and the change in the fixed-allocations .
Appendices
The Illinois EPA is proposing to update the listing of existing non-EGUs in Appendix D
to reflect changes in ownership and permit unit numbers assigned to units . It is also proposing to
add Flint Hills (which had previously been doing business as BP Amoco) and Bunge Milling,
Inc., which were inadvertently excluded from the Appendices, and delete the reference to
University of Illinois' boiler, as it was later determined that the unit should not be subject to the
requirements of the NO, Trading Program . (DR 1). The Agency is waiting for a final allocation
for Bunge Milling, Inc. from USEPA. Once USEPA promulgates a rule with allowances for this
source, the Agency will propose to amend the rule to include this allocation . (Exhibit d). With
respect to LTV Steel's boiler number 4B, the appendix has been amended to reflect the sale of
the boiler to Chicago Coke for allocations beginning with the 2007 control period. In most
cases, emission units and sources may undergo a change in owner, or name of owner and still
receive allocations under Subpart U if the necessary requirements are met
.
The Illinois EPA is proposing to update the listing of existing non-EGUs in Appendix E
to reflect changes in ownership, name changes, and permit unit numbers assigned to affected
units and any changes to their allocations . It is also proposing to add Flint Hills (which had
previously been doing business as BP Amoco), and, to provide an allocation of 6 allowances
.
The allocations of A.E. Staley, Archer Daniels Midland, Com Products International, Aventine
Renewable Energy, and Trigen-Cinergy Solutions of Tuscola, have been reduced to allow for
this allocation. This change was made with the consent of the companies involved from whom
the allowances were taken .
Page
9
The Illinois EPA is proposing several amendments to the Appendix F for EGUs . First, it
is adding an abbreviation for Ameren Energy Generation Company ("AERG") .
It is moving the
allocations from the Collins units 1-4 to Powerton boiler 52, at the Company's request, as well as
updating company names
.
II . GEOGRAPHIC REGIONS AND SOURCES AFFECTED
The entire State of Illinois, specifically all cement kilns subject to Subpart T, non-EGUs
subject to Subpart U, and EGUs subject to Subpart W, are affected by the proposed amendments
to Part 217
.
III .
PURPOSE AND EFFECT OF THE PROPOSAL
The purpose of this proposal is to update Part 217 to reflect recent amendments made by
USEPA to the Code of Federal Regulations (CFR) concerning several test methods and
procedures and by the Illinois General Assembly to Section 9 .9 of the Act concerning the sale of
NO, allowances and the repeal of the stay provisions. The proposal will also ensure that the NO,
budgets for both the EGUs and the non-EGUs are not reduced by low-emitters in a way that was
not anticipated at the time the rules were originally adopted by the Board . Finally, the proposed
clarifications to the dates and timing of allocations should simplify the administration of the NO,,
Trading Program . This proposal does not change the emission limits or require new control
devices on affected sources
.
IV .
TECHNICAL FEASIBILITY AND ECONOMIC REASONABLENESS
The amendments to Part 217 are being proposed to ensure consistency with amendments
to Section 9.9 of the Act, including the authorization for the Illinois EPA to sell certain
Page
10
allowances and the removal of the stay provisions . The proposal updates the incorporations by
reference consistent with amendments made by USEPA to the CFR, the allocation methodology
and Appendices. Finally, the proposal simplifies the administration of the NO, Trading Program
by removing or clarifying the low-emitter requirements . The proposed amendments do not
impose new emission limitations or require new control devices on affected sources. Therefore,
an analysis of technical feasibility and economic reasonableness is not needed
.
V. COMMUNICATION WITH INTERESTED PARTIES
These amendments are being proposed after representatives of industry and
environmental groups have had an opportunity to review the proposed changes, discuss any
issues and provide comments to the Illinois EPA . (Exhibit c). It is the Illinois EPA's
understanding that except for the aforementioned issues of whether the LTV steel allowances for
the 2004, 2005, and 2006 control periods should be transferred to Chicago Coke, and the final
disposition of lapsed allocations there were no other significant issues identified by interested
parties. The Illinois EPA is being represented by the Attorney General's Office with regards to
the 2004 -2006 allowances .
VI .
THE ILLINOIS EPA'S PROPOSAL
Throughout Part 217, the Illinois EPA is proposing to make grammatical corrections and
use abbreviations where appropriate . What follows is a Section-by-Section summary of the more
significant changes in Illinois EPA's proposal .
35111. Adm. Code 217: SUBPARTA:GENERAL PROVISIONS
Section 217.101 Measurement Methods
Page II
Illinois EPA is proposing to amend subsections (a) through (c) to replace the date that the
method was amended with the statement that the method is incorporated by reference in Section
217.104. The proposed amendment would be consistent with how measurement methods are
included in other parts of Subtitle B, e.g ., Parts 212 and 214. In the future, if USEPA updates the
applicable test methods and procedures, then only Section 217 .104 will need to be amended
.
Section 217.102 Abbreviations and Units
Illinois EPA is proposing to add the abbreviations for electronic data report ("EDR"),
new source set-aside ("NSSA"), and Office of Regulatory Information Systems ("ORIS")
.
Illinois EPA proposes to move the abbreviations for nitrogen oxides ("NO."),
so that it will be
in alphabetical order .
Section 217.104 Incorporations byReference
Illinois EPA is proposing to update the incorporations by reference in subsections (a), (d),
(g) and (h) .
PART 217: SUBPART T: CEMENT KILNS
Section 217.402 Control Requirements
Illinois EPA is proposing to amend subsections (a)(2)(A) through (a)(2)(D), and (a)(3)(A)
to eliminate a duplicative reference to NON .
Illinois EPA is proposing to amend subsection (b) to
delete the now obsolete provision from Section 9 .9(f) of the Act requiring that the provisions of
Subpart T to be stayed if other contiguous States did not implement the requirements of the NO x
SIP call. Illinois EPA is proposing that subsection (b) be reserved rather than renumbering the
Page
12
Section, as the Clean Air Act Permit Program (CAAPP) permits for sources subject to Subpart T
reference several of the subsections in this Section. If the Section were to be renumbered, the
references in the permits would no longer correspond to those in the amended regulation
.
35111. Adm. Code 217: SUBPART U: NOx CONTROL AND TRADING PROGRAM
FOR SPECIFIED NOx GENERATING UNITS
Section 217.454 Applicability
Illinois EPA is proposing to amend subsections (c) and (d) to clarify the requirements for
owners or operators electing the low-emitter exemption for an affected unit . To be eligible, the
source must be listed in Appendix E and the unit must either be listed in Appendix E and receive
a fixed allocation or must obtain a permanent transfer of allowances from a unit listed in
Appendix E. The Agency will initiate a rulemaking to reflect the change in allocations . Illinois
EPA is proposing two amendments to subsection (e) . First, Illinois EPA is proposing to delete
the language granting an implementation stay. Second, Illinois EPA is proposing to exempt
boilers which combust and thereby control carbon monoxide emissions from FCCUs located at
refineries .
Section217.456 Compliance Requirements
Illinois EPA is proposing to amend subsection (b)(3), which currently requires owners or
operators applying for a budget permit to specify either a source wide overdraft account or a
specific account for each unit or both, by making the election voluntary . Illinois EPA is
proposing to amend subsection (f)(6) to correct a reference to "EGUs" when the reference should
be to non-EGUs or budget units
.
Page
13
Section 217.460 Subpart U NOx Trading Budget
Illinois EPA is proposing to amend subsections (a) and (d) to reflect a slight reduction in
the number of NO, allowances in the Subpart U trading budget due to the allocation for boilers at
University of Illinois being removed from the budget and an allocation for LTV Steel being
added to the budget . See, 65 Fed. Reg. 34382 at 34387 (June 28, 2001). (DR 1) .
Section 217.462 Methodology for Obtaining NOx Allocations
Illinois EPA is proposing to amend subsection (b) to clarify that account numbers are
needed for both the budget unit account where the allowance is held and the unit account number
to which the NO, allowance is being transferred
.
Illinois EPA is proposing to add subsections (d) and (e) to address circumstances where
allowances cannot be allocated by the Agency and hence cannot be used by an affected budget
unit, to allow the Agency to allocate the previously fixed allowances to different units . The
three circumstances where a budget unit listed in Appendix E is eligible for an allocation but the
Agency is unable to make an allocation to that particular unit or source are set forth in
subsections (d)(1) through (d)(3) . Specifically, the circumstances are when the owner or
operator of the budget unit fails to appoint an account representative or open a NO, allowance
account; the source or unit is permanently shutdown, not replaced, and the permit has been
withdrawn ; or the source or budget unit is sold and the former owner or operator fails to notify
the Agency whether the NO, allocation has transferred to the new owner or operator or another
source or unit that is subject to Subpart U . The owner or operator affected by one of the above
circumstances must act within two years of the date that the Agency is required to allocate
allowances, or the Agency will have the discretion to allocate the allowances as specified in
Page
14
subsection (e)
.
Illinois EPA is proposing to add subsection (e) to require notification to the owner or
operator that their allocation has lapsed, and give the owner or operator 30 days to respond to
prevent forfeiture. If the allowances are forfeited, subsections (e)(1) through (e)(3) describe how
the Agency will allocate these allowances . Allowances forfeited because the owner or operator
failed to appoint an account representative or open a NO, allowance account, or the source or
unit has been permanently shutdown, will be allocated based on heat input to those non-EGUs
that are not listed in Appendix E and do not receive a fixed allocation, but are subject to Subpart
U. To the extent that there are more than 100 NO, allowances under subsection (e)(1) that have
not been allocated, the Agency will allocate the remainder to owners or operators of units listed
in Appendix E pro-rata, based on the allocation listed for the unit in Appendix E. Only whole
allowances will be allocated, allowances that cannot be allocated pro-rata will be retained and
allocated in successive control periods under subsection (e)(1) . In subsection (e)(3), where the
forfeiture is due to a unit or source being sold, the allowances will be allocated to the source or
unit under new ownership and the Agency will later propose a rulemaking to amend Appendix E
to reflect this change in the fixed allocations
.
Notwithstanding these provisions, the Agency acknowledges that if an owner or operator
files bankruptcy or an order for relief has been entered in an involuntary bankruptcy case, the
debtor, trustee, or other parties in interest may assert that the owner or operator's interest in the
NOx allowances may be considered property of the estate pursuant to Section 541 (a) of the
Bankruptcy Code. See, I 1 U.S.C. §541(a). (DR e). Although theses rules are drafted with the
intent not to create a property interest, the Agency acknowledges that it is federal law and not
state law that determine whether an interest of the debtor is property of the estate
.
Page
15
Consequently, the Agency may not be able to take action to forfeit or transfer the NOx
allowances without the Bankruptcy Court determining that the debtor's interest in the NOx
allowances is not property of the estate or the Bankruptcy Court's entry of an order granting the
Agency's motion for relief from the automatic stay pursuant to Section 362(d) of the Code . See,
11 U.S.C. §362(d). Upon the Bankruptcy Court's lifting the automatic stay or finding that the
NOx allowances are not property of the estate, the Agency would take the necessary action in
accordance with nonbankruptcy law to have the NOx allowances forfeited. Should the
Bankruptcy Court determine the NOx allowances are property of the estate or it denies the
Agency's request to lift the automatic stay, the Agency would not initiate the forfeiture
proceeding until the bankruptcy case was either closed or dismissed . While the bankruptcy case
is pending, the Agency would not forfeit or transfer the allowances to another party, absent an
order issued by the Bankruptcy Court pursuant to Section 363 of the Code . See, 11 U.S.C. §363 .
Section 217.464 Methodology forDetermining NOx Allowances fromthe New Source
Set-Aside
Illinois EPA is proposing to amend subsection (a) to clarify what is meant by the term
"new" as those units are eligible to receive allowances from the NSSA as specified in Section
217.468. Illinois EPA is proposing to amend subsection (c)(4) to substitute 77 days with a date
certain, July 16` h. This is what was originally intended
.
Section217.466 NOx Allocations Procedures forSubpartUBudget Units
Illinois EPA is proposing to amend subsection (a) to take into account its proposal to
address allowances that have been forfeited . Currently, the subsection provides that all
Page
16
allowances in Appendix E be allocated to a listed budget unit. Illinois EPA is proposing to
amend subsection (c) to extend the date it is required to report NSSA allocations until May I"
.
Illinois EPA is proposing to amend subsection (d) to delete the requirement that it allocate the
excess allowances from NSSA by a date certain
.
Section 217.468 New Source Set-Asidesfor "New" Budget Units
Illinois EPA is proposing to amend subsection (a) to delete the word "commercial" as it
only applies to utility units
(i.e., EGUs) which are regulated under Subpart W. Illinois EPA is
proposing to amend subsection (e) to clarify that requests for allowances from the NSSA must
include supporting data and calculations, and that heat input data must be submitted in an
electronic format. Since these allowances must be purchased, it is also proposing to require that
applications be submitted two weeks earlier to allow sufficient time for processing the
applications and selling these allowances . Applications would be due before February 15 of the
applicable control period. Illinois EPA is proposing to amend subsections (f) and (g) to delete
the specific requirements for the sale of these allowances and instead reference the recently
adopted Agency rules at 35 Ill . Adm. Code 273
.
Section 217.472 Low-EmitterExemption Requirements
Illinois EPA is proposing to amend the title of the exemptions from "Low-Emitter" to
"Low-Emitter Exemption Requirements" to reduce confusion for a similar term used for the
exemption from the monitoring requirements of "low-mass emitter ." Illinois EPA is proposing
to amend subsection (a)(2) to clarify that the NO, Budget for Subpart U sources and units will be
reduced by the NO, limit included in the permit for such a unit. The reduction will be limited to
Page
17
the number of allowances specified in Appendix E for the unit plus any allowances that are
permanently transferred to that unit from another Appendix E unit . In no case will a unit be
allowed to have a permitted emission limit greater than 25 tons for the control period . Illinois
EPA is proposing to amend subsection (a)(3) to clearly reference the subsections that define
"potential" for the purposes of calculating "mass emissions" and "maximum potential hourly
mass emissions." Illinois EPA is proposing to amend subsection (d) to clarify that only a source
listed in Appendix E may elect low-emitter status, and that if the owner or operator has requested
a permit emission limit greater than its allocation in Appendix E, the owner or operator must
demonstrate that it has obtained a permanent allocation from another unit listed in Appendix E
.
35111. Adm. Code 217: SUBPART W:NOx TRADING PROGRAM
FOR ELECTRICAL GENERATING UNITS
Section 217.754 Applicability
Illinois EPA is proposing to delete subsection (c), the low-emitter provisions as
they apply to EGUs. Under the federal NOx SIP Call Trading program, the Agency was not
required to adopt provisions allowing units to elect low-emitter status . Administering low-
emitter provisions added an unnecessary level of complexity. The budget needs to be fixed when
the Agency makes the allocations because new units roll in five years after they commence
operation, and existing units receive allocations three years in advance based on a methodology
that changes every year, but low-emitters reduce the budget in the year they elect low-emitter
status. The Agency has already allocated allowances for that year. In addition, as the current
language allows units to apply for a maximum of 25 tons per control period, even if the unit has
historically had lower emissions, and requires the Agency to reduce the budget by the permitted
Page
1 8
amount. Hence, there is a possibility that existing units would be unfairly impacted because the
overall budge available to them would be reduced by an order of magnitude above the actual
emissions from units electing low-emitter status
.
Section217.756 Compliance Requirements
Illinois EPA is proposing to amend subsection (d)(3) to delete the obsolete statutory
reference to a stay of programmatic requirements . Illinois EPA is proposing to amend
subsection (g) to delete the reference to the low-emitter provisions, which are being removed
.
Section 217.760 NOx Trading Budget
Illinois EPA is proposing to delete the language from subsections (b) and (c)
.
Subsection (b) refers to low-emitters . Subsection (c) refers to changes that would have occurred
as the result of a lawsuit concerning the growth factors used to determine Illinois' EGU NOx
trading budget . As Illinois was not successful in this matter, no changes to the trading budget are
anticipated. See,
State of West Virginia v. Environmental Protection Agency, (D.C .
Cir. No . 02-
1181, April 9, 2004) (DR m) . We are proposing to reserve these subsections, as subsection (a) is
referred to in other Sections in this Subpart . Deleting these subsections would confuse the
references used in permits that have already been issued
.
Section 217.764 NOx Allocations forBudget EGUs
Illinois EPA is proposing to amend subsections (a) through (f) to clarify the timing of
allocations, and correct a cross reference in subsection (c)(1). The current language is slightly
ambiguous as it states: "In 2004
.
.." when the intent is for that control period. Hence, in the
Page
19
heading of each subsection "in" has been struck and replaced with the phrase, "For control
period
. . .." In addition, the parenthetical statement of how many years as of a certain year that the
program has been in effect "(or for the first three years of the program)" has also been struck as
irrelevant. Illinois EPA is proposing to amend subsection
(b)(2) to add "on or" to the phrase
"before May 1, 2003," as there was a one day gap in the rules. Illinois EPA is proposing to
amend subsection (b)(5) to correct the tense of the verb "commenced" to the present to reflect
that the activity has not already occurred . It is also clarifying the control periods that a new
budget will be eligible for allowances from the NSSA. It is proposing similar amendments to
subsections (c) through (f). Illinois EPA is also proposing to delete the Board Note, as no
additional delays in implementation occurred after the first 13 month extension until May l,
2004. The cross reference in subsection (c)(1) to subsections (b)(2) and (b)(4) should be (c)(2)
and (c)(4) .
Section 217.768 New Source Set-Asides for "New"Budget EGUs
Illinois EPA is_ proposing to amend subsections (c)(3) and (j) to clarify that allowances
will be allocated pro-rata based on heat input and to clarify that where whole allowances cannot
be allocated they will be rolled over into the next year's NSSA and allocated on the same basis
as other allowances from the NSSA. Illinois EPA is proposing to amend subsection (d) to clarify
the type of information that an account representative needs to submit as part of a request for
allowances from the NSSA. Illinois EPA is proposing to amend subsections
(e)(3) and (e)(4) to
clarify the heat input that will be used for determining the number of allowances that a new unit
is eligible to request from the NSSA, as well as to clarify that maximum design heat input will
only be used for one control period . Illinois EPA is proposing to amend subsections (f), (g), (h),
Page 20
and (k) to conform the requirements for applications, sale, notification, and payment for
allowances from the NSSA with the amendments to Section 9 .9 of the Act and the Agency's new
procedural rules for the NO, Trading Program as set forth in 35 Ill. Adm. Code 273 . Illinois
EPA is also proposing to delete the Board Note, as no additional delays in implementation
occurred after the first 13 month extension until May 1, 2004
.
Section217.774 Opt-In Units
Illinois EPA is proposing to delete subsection (e)(5) for consistency with its proposal to
delete the low-emitter exemption in Section 217.754(c)
.
217.Appendix D Non-Electrical Generating Units
The Illinois EPA is proposing to amend the listing of existing non-EGUs to reflect
changes in ownership and permit unit numbers assigned to units . It is also proposing to add Flint
Hills (which had previously been doing business as BP Amoco) and Bunge Milling, Inc., and
delete the reference to University of Illinois' boiler.
217,Appendix E Large Non-Electrical Generating Units
The Illinois EPA is proposing to update the list of existing non-EGUs to reflect changes
in ownership and permit numbers assigned to units and any changes to their allocations . It is
proposing to add Flint Hills (which had previously been doing business as BP Amoco) and
identify an allocation of six allowances . The allocations of A .E. Staley, Archer Daniels Midland,
Com Products International, Aventine Renewable Energy, and Trigen-Cinergy Solutions of
Tuscola, have been reduced to provide for this change . It proposing to add a place holder for
Page 2 1
Bunge Milling, Inc. and a Board note indicating that an allocation is expected from USEPA . The
Illinois EPA is also proposing to delete the reference to University of Illinois' boiler . With
respect to LTV Steel's boiler number 4B, the appendix has been amended to reflect the sale of
the boiler to Chicago Coke for allocations beginning with the 2007 control period
217.Appendix F Allowances for Electrical Generating Units
The Illinois EPA is proposing several amendments to this Appendix. These amendments
include adding an abbreviation for Ameren Energy Generation Company ("AERG"), moving the
allocations from the Collins 1-4 units to Powerton Boiler 52, at the request of the owner, as well
as name changes .
VI . CONCLUSION
For the reasons stated above, the Illinois EPA hereby submits this regulatory proposal
and respectfully requests that the Board expeditiously adopts these rules for the State of Illinois
.
Respectfully submitted,
ILLINOIS ENVIRONMENTAL
PROTECTION AGENC
By:
Rachel L. Doctors
Assistant Counsel
Division of Legal Counsel
DATED
: January 17, 2006
1021 North Grand Ave . East
P.O. Box 19276
Springfield, IL 62794-9276
Page 22
Exhibits
RECEIVED
CLERK'S
OFFICE
JAN 1 9 2006
STATE OF
ILLINOIS
Pollution Control Board
Don Sutton - final CO FCCU boiler policy
From :
<Paskevicz.John@epamail .epa .gov>
To :
<jim.tichich@epa .state.oh.us>, <don.sutton@epa.state .il.u s>,
<rletterm@dem.state . in .us>
Date :
Mon, Nov 24, 2003 8:52 AM
Subject
:
final CO FCCU boiler policy
I'm not certain when this FCCU-CO boiler policy will be sent out as a
formal document from Clean Air Markets Division, so I'm including it
here for your information. The main difference between this final
version and the draft version you looked at is the reference to
splitting the category . Call me if you have any questions
.
John Paskevicz
Air and Radiation Division
- R5
312-886-6084
---- Forwarded by John Pas kevicz/R5/USEPA/US on 11/24/2003 08:27 AM
Beth Murray
To :
John
11/19/2003 09 :15
Paskevicz/R5/USEPA/US@EPA
AM
cc :
Subject: final CO FCCU boiler policy
Forwarded by Beth Murray/DC/USEPA/US on 11/19/2003 10 :14AM---
Dwight Alpern
To
:
Mary
11/13/2003 03:11
Shellabarger/DC/USEPA/US@EPA, Beth
PM
Murray/DC/USEPA/US@EPA, Carol
Weisner/DC/USEPA/US@EPA
cc :
Subject: final CO FCCU boiler policy
(See attached file : cofccuboilernoxsipcallpolicy.wpd)
CC :
<Bahr.Ryan @epamail .epa.gov>, <Marquardt.Steve@epamail.epa.gov>,
<Bortzer.Jay@epamail.epa.gov>
- -
_ Illinois EPA -Mibit No.0.' -
Page
NOx SIP Call Applicability: Carbon Monoxide (CO) boilers combusting CO from
the Fluid Catalytic Cracking Units (FCCUs)
BACKGROUND
General
•
Some FCCUs use CO boilers (FCCU-CO boilers) to combust and thereby control CO and
to produce steam for use at the refinery
.
•
NOx is produced by the regenerator at the FCCU and by the CO boiler and vents through
a single stack
.
NOx SIP Call treatment of FCCU-CO boilers
•
The NOx SIP Call includes "industrial boilers" as large non-electric generating units
(non-EGUs), but excludes FCCUs, from calculation of required highly cost-effective
reductions (63 FR 57356, 57416, Oct . 27, 1998)
.
•
In the NOx SIP Call preamble and rule, "FCCU' is not defined, but the definition of
"boiler" (40 CFR 96 .2) covers FCCU-CO boilers
.
•
Technical support documents developed for NOx SIP Call final rule (but not developed
for NOx SIP Call proposed rules) describe "FCCU' as including the process heater and
the regenerator and treat the FCCU-CO boiler as a separate source
.
•
The NOx SIP Call large non-EGU inventory includes some, but not all, FCCU-CO
boilers .
•
Part 60, Subpart J (40 CFR 60.101(m)) arguably defines "FCCU' to include the FCCU-
CO boiler (i .e., as "regenerator equipment for controlling air pollutant emissions and for
heat recovery") .
•
Treatment of FCCU-CO boilers is inconsistent among States, with some States including
them in the SIP NOx trading program as non-EGUs and some States excluding them from
the SIP NOx trading program .
EPA'S POSITION
EPA intends to allow each State with one or more FCCU-CO boilers the option of determining
whether all its large FCCU-CO boilers are covered, or all its large FCCU-CO boilers are not
covered, by the SIP NOx trading program . EPA does not intend to allow States to split the
category by including some, but not all, large FCCU-CO boilers in the trading program
.
•
EPA's position is based on the following circumstances
:
a. The NOx SIP Call includes industrial boilers (as large non-EGUs), but excludes
FCCUs, from calculation of required highly cost-effective reductions .
b. The NOx SIP Call definition of "boiler" covers FCCU-CO boilers
.
c. Technical support documents for the NOx SIP Call final rule (but not included
for NOx SIP Call proposed rules) define "FCCU" as not including the FCCU-CO
boiler.
d. The 40 CFR Part 60
.definition of "FCCU," which arguably includes FCCU-CO
boilers, created confusion over whether FCCU-CO boilers were included as non-
EGUs
.
1
e. Treatment of FCCU-CO boilers in large non-EGU inventories and SIP NOx
trading programs is inconsistent among States
.
Because of these circumstances, EPA believes each State should have the option of
deciding whether to include all large FCCU-CO boilers in, or exclude all large FCCU-CO
boilers from, the SIP NOx trading program ; EPA intends not to disapprove SIPs simply_
because they exclude all large FCCU-CO boilers in the State from the trading program
.
EPA recommends that a State may choose to revise its SIP to include or exclude all large
FCCU-CO boilers in that State as follows
:
a. To exclude an FCCU-CO boiler currently in, and allocated allowances under,
the SIP NOx trading program,'
1. Take back (or do not take action to provide) all allowances allocated to
such boiler and remove such allowances from the trading program
.
2. When the allowance allocations for non-EGUs are updated,
i. Determine the controlled emissions calculated for such boiler by
examining the 2007 control case portion (which reflects 60%
reduction of 2007 uncontrolled emissions) of the NOx SIP
.Call
emissions inventory .
ii. Decrease the total tons, and thus the total amount of allowances,
for non-EGUs in the NOx trading program by the amount from
step a.2.i above
.
b. To include an FCCU-CO boiler currently not in, and not allocated allowances
under, the SIP NOx trading program,
I . Allocate to such boiler an amount of allowances calculated using the
same procedures that were used to allocate allowances to the other non-
EGUs .
2. When the allowance allocations for non-EGUs are updated,
i. Calculate the NOx emissions remaining at the boiler after the
NOx SIP Call reduction (a 60% reduction of 2007 uncontrolled
emissions) by using the 2007 base case emissions inventory)
.
ii. Increase the total tons, and thus, the total amount of allowances,
in the NOx trading program tons by the amount from step b .2.i
above .
•
For questions, contact Dwight Alpena (202-564-9151) or Doug Grano (919-541-3292)
.
' If an FCCU-CO boiler is currently in the SIP NOx trading program but is not allocated
allowances because the unit is not in the 2007 control case in the NOx SIP Call emissions
inventory, the unit may be excluded from the program by continuing not to allocate allowances
and, when allowance allocations are updated, continuing to exclude the unit's emissions from the
2007 control case .
2
NOx Trading Program Subpart W
:
Schedule for the Fixed/Flex Approach and Roll-In for New Sources
commences commerwa operation
NSSA = New Source Set Aside
HI = Heat Input
Calendar
Year
Control
Period
Existing
EGU
Allowance
New EGU*
1/95-5/1/03
New EGU*
5/2/03-
5/1/04
New EGU*
5/2/04-
5/1/05
New EGU*
5/2/05-
5/1/06
New EGU*
5/2/06-
5/1/07
New EGU*
5/2/07-
5/1/08
New EGU*
5/2/08-
5/1/09
New EGU*
5/2/09-
5/1/10
New EGU*
5/2/10-
5/1/11
2004
App
. F
NSSA
NSSA
NSSA
----------
----------
----------
----------
----------
----------
2005
App
. F
NSSA
NSSA
NSSA
NSSA
----------
----------
----------
----------
----------
2006
App
. F
NSSA
NSSA
NSSA
NSSA
NSSA
----------
----------
----------
----------
2004
2007
F -
80%
for 2 years
Semi-
Rolling
NSSA
NSSA
NSSA
NSSA
NSSA
----------
----------
----------
2005
2008
F-80%
for 2 years
Semi-
Rolling
Senti-
Rolling
NSSA
NSSA
NSSA
NSSA
NSSA
NSSA
NSSA
NSSA
----------
----------
2006
2009
F-50%
for 2 years
Semi-
Rolling
Senti-
Rolling
Senu-
Rolling
NSSA
NSSA
----------
2007
2010
F-50%
for 2 years
Semi-
Rolling
Semi-
Rolling
Semi-
Rolling
Semi-
Rolling
NSSA
NSSA
NSSA
NSSA
NSSA
2008
2011
HI
HI
HI
HI
HI
HI
NSSA
NSSA
NSSA
NSSA
2009
2012
111
HI
HI
HI
HI
141
HI
NSSA
NSSA
NSSA
2010
2013
HI
III
III
111
HI
HI
1-11
1-11
NSSA
NSSA
2011
2014
Hl
1-11
1-11
1-11
1-11
1-11
HI
HI
III
NSSA
2012
2015
HI
HI
HI
HI
HI
1-11
111
1-11
111
HI
217/524-3337
December 16, 2005
Mr. Jack Darrin
Sierra Club
200 N. Michigan Avenue, Ste . 505
Chicago, IL 60618
Re
:
Proposal for Amendments to Part 217
Dear Mr. Darrin
:
The Illinois EPA has developed a proposal to amend Part 217 that it is planning on filing
within the next couple of weeks with the Illinois Pollution Control Board ("Board") for hearing -
and adoption. Enclosed is a copy of the Proposed Rule . There may be some minor edits
before the proposal is filed
.
If you have any comments or questions, please contact me at the number above
.
Sincerely,
Illinois EPA Exhibit No
.
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
1021 NORTH GRAND AVENUE EAST, P.O . Box 19276,
SPRINGFIELD, ILLINO6
6' ,-94-9276 -( 21 71 782-3397
I,a,xtES R . THOMMPSON CENTER, 100 WEST RAN DOLPH, SLATE 1 1-300, CHICAGO . IL 60601 -(312) 814-6026
ROD R. BLAGO)EVICH, GOVERNOR
DOUGLAS P . SCOTT, DIRECTOR
Rachel L. Doctors
Assistant Counsel
Division of Legal Counsel
RocnroRu-4302 North Main Street, Rockford, IL 61103-(815) 987-7760
•
Des PLANES, -9311 W . Ha ,rison SL, Des Plaines, IL 60016-1847) 294-4000
ELc.tx -595 South State, Elgin, IL 60123-(847) 608-3131
•
PEORIA-5415 N . University 5 ; ., Peoria, IL 61614-13091693-3463
BLarsL(IFL,0-PEORIA-7620 N-UniversitvSt.,Peoria, IL61614-(309)693-5462
•
CHANIPAION-2125 South First Street, Champaign, IL618_20-1217 ) 2785800
SPR)NCFIELD- 4500 S. Sixth Street Rd ., Springfield, IL 62706-(217) 786-6892
•
CowNSV]LEE -2009 Mall Street, Collinsville, IL 62234 -1618 346-5120
MARION - 2309 W
. plain St
. . Suite 116, Marion, IL 62959-(618.993-7200
PR'NrEo
oN RrcPCEED
PAPER
(217) 524-7636
December 22, 2004
Dear :
Two weeks ago, we shared a draft of our proposal to sell certain allowances and indicated that
we would also be filing a proposal with the Illinois Pollution Control Board to amend the rules
for the NOx Trading Program (35 Ill. Adm. Code 217), to reflect the amendments to Section 9 .9
of the Act, update incorporations by references, clarify the low-emitter provisions for industrial
boilers and eliminate these provisions for utility boilers, and update the Appendices . We have
also included new provisions to Subpart U (non-utility boilers) to address abandoned allowances
in Section 217 .462(d) and (e) .
A copy of the proposal is enclosed . Please share a copy of this proposal with your members and
check the identification of their facility and emission units in the Appendices . We will be
scheduling a meeting in mid-January to discuss these provisions . However, it would be helpful
to hear any concerns. or suggestions you may have prior to the meeting . Please contact Rachel
Doctors at 217/524.3337 or rachel.doctors a,epa.state . i1 .us by January 7, 2005, with any
comments .
Sincerely,
Laurel Kroack, Manager
Division of Air Pollution Control
Bureau of Air
ROCKFORD-4302 North Main Street, Rockford, IL 61103-18151987-7760
•
DES PLAINES-9511 W. Harrison St., Des Plaines, IL 60016-(847) 294-4000
ELGIN -595 South State, Elgin, IL 60123 - (847) 608-3131
•
PEORIA-5415 N. University St., Peoria, IL 61614 -(309) 693-5463
BUREAU OF LAND - PEORIA - 7620 N. University St., Peoria, IL 61614 -(309) 693-5462
CHAMPAIGN -2125 South First Street, Champaign, IL 61820-(217) 278-5800
SPRINGFIELD-4500 S. Sixth Street Rd., Springfield, IL 62706-(217) 786-6892
• •
COLLINS
ILLE-2009 Mall Street, Collinsville, IL 62234-(618) 346-5120
MARION-2309 W .
.Main St., Suite 116, Marion, IL 62959-(618) 993-7200
PRINTED
ON
RECYCLED PAPER
Illinois EPA Exhibit No .
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
1021 NORTH
GRAND AVENUE EAST, P.O. Box
19276,
SPRINGFIELD, ILLINOIS
62794-9276 - ( 217) 782-3397
JAn1ES R. THOMPSON CENTER, 1001-VEST RANDOLPH, SUITE
11-300,
CHICAGO,
IL 60601 - (312) 814-6026
ROD R .
BLAGOJEVICH, GOVERNOR
DOUGLAS
P. SCOTT,
DIRECTOR
Illinois EPA Exhibit No .
d
---
p
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
1021 NORTH GRAND AVENUE EAST,
P.O . Box
19276, SPRINGFIELD, ILLINOIS 62794-9276
- ( 217) 782-3397
JAMES
R .
THOMPSON CENTER,
100
WEST RANDOLPH, SUITE 11-300, CHICAGO,
IL
60601 -(312) 814-6026
ROD R. BLAGOJEVICH, GOVERNOR
DOUGLAS P. SCOTT, DIRECTOR
(217)782-3397
(217) 782-9143 TDD
December 13, 2005
Ms. Katherine D. Hodge
Hodge Dwyer Zeaman
3150 Roland Avenue
Springfield, Illinois 62705-5776
Dear Ms. Hodge
:
Director Scott has asked that I respond to your letter of September 20, 2005 . Bureau of Air staff
has reviewed your letter requesting an applicability determination as to whether the circulating
fluidized bed, coal-fired boiler ("CFB Boiler") in Danville (ID Number 183020ABT) owned and
operated by Bunge Milling, Inc . ("Bunge"), is subject to the Illinois NOx trading regulations
under the NOx Budget Trading Program . From the information provided in the letter and a
review of the air regulations at 35 IAC Part 217, Bunge is not currently covered by the NOx
Budget Trading Program
.
According to Bunge, the CFB Boiler commenced operation in 1986, has a maximum design heat
input of 322.5 mmBtu/hr, and serves one generator having a nameplate capacity of 20 MWe,
which has produced some electricity for sale . Illinois' NOx Budget Trading Program regulations
are set forth in Subparts A (general provisions), U (for non-EGUs), and W (for EGUs) of
Part 217 .
Under Section 217.454, Subpart U applies to a unit with maximum design heat inputt of greater
than 250 mmBtu/hr if (1) the unit is listed in Appendix E of the Subpart or (2) the unit is not
listed and serves a generator producing electricity for sale and having a nameplate capacity of 25
MWe or less and the potential to use no more than 50 percent of the potential electrical output
capacity of the unit. There are some other categories of units subject to Subpart U listed as well,
but they are not relevant to the evaluation of Bunge's status
.
Section 217.454(a)(2)(B) provides that 50 percent of potential electrical output capacity is equal
to the maximum design heat input multiplied by 0.0488 MWe/mrnBtu. The CFB Boiler is not
listed in Appendix E, and 50% of its potential electrical output capacity, based on information
provided by Bunge, equals 15 .738 MWe -thus the nameplate capacity of the associated
ROCKFORD-4302 North Main Street, Rockford, IL 61103-(815) 987-7760
•
DES PtAINES-9511 W. Harrison St., Des Plaines, IL 60016-(847) 294-4000
ELGIN-595 South State, Elgin, IL 60123-(847) 608-3131
•
PEORIA-5415 N. University St., Peoria, IL 61614-(309) 693-5463
BUREAU
OF
LAND- PEORIA-7620 N . University St., Peoria, IL 61614-(309) 693-5462
•
CHAMPAIGN- 2125 South First Street, Champaign, IL 61820-(217) 278-5800
SPRINGFIELD -45005.Sixth Street Rd.,Springfield, IL62706-(217)786-6892
•
COILINSVItir-2009 Mall Street, Collinsville,IL62234-(618)346-5120
MARION- 2309 W. Main St., Suite 116, Marion, IL 62959-(618) 993-7200
generator is greater than 50 percent of the potential capacity. Consequently, the CFB Boiler is
not subject to Subpart U
.
Under Section
217 .754,
Subpart W applies to a unit with a maximum design heat input greater
than
250
mmBtu/hr, commencing operation on or after January 1, 1999, and serving a generator
having a nameplate capacity of
25
MWe or less and having the potential to use more than
50%
of
the potential electrical output capacity of the unit . There is another category of units subject to
Subpart W listed as well, but that category is not relevant to the evaluation of Bunge's situation
.
Because the CFB Boiler commenced operation prior to 1999, it is not subject to Subpart W
.
Thus. since the unit is not currently subject to either Subpart U or Subpart W, the CFB Boiler is
not cur ently subject to the NOx Budget Trading Program
.
However, this exclusion of Bunge from the program was inadvertent and the Illinois EPA
believes that Bunge's boiler should be a listed non-EGU in Appendices D and E of Part
217 .
As
such, the Illinois EPA plans to correct this exclusion in the upcoming amendments to Part
217 .
To accomplish this, the Illinois EPA will work with Bunge and will request that U
.S. EPA add
the appropriate number of NOx allowances for Bunge's CFB Boiler to the statewide NOx budget
for non-EGUs . Once this is accomplished, the Illinois EPA will be able to allocate NOx
allowances to Bun,-e.
Until such time as the current Illinois NOx trading regulations are
amended to include Bunge in Appendices D and E of Part
217
and U .S. EPA increases Illinois'
NOx budget to include the CFB Boiler, Bunge will continue to be exempt from the NOx Budget
Trading Program
.
We appreciate you bringing this situation to our attention and will work with you to resolve this
issue .
Sincerely,
Laurel L. Kroack
Chief, Bureau of Air
Ae
cc :
Dwight C. Alpern, USEPA
John Mooney, USEPA
g
:\\kk .Bloomberg~Hodge - Bunge-I 1-04
2
Synopsis of Testimony
JAN 1 9 2005
STATE OF ILLINOIS
David Bloomberg, Manager of the Compliance Unit within the BppptiS A3ontr6I Board
the Agency's lead contact for NOx trading, will testify about the technical aspects of the
changes to the regulations. In addition to a general overview, Mr. Bloomberg will address
the following :
•
Elimination of low-emitter status for EGUs and changes to the low emitter
provisions for non-EGUs
.
•
Creation of a mechanism by which unused NOx allowances can be given to
sources that need them . This addition to the regulation will also clarify how the
Agency will determine the proper allocation of allowances in cases where the sale
of a source has taken place
.
•
Modifications to the regulations to reference the Section 273, the Agency's rule
covering the methodology for sale of certain types of allowances
.
RECEIVED
CLERKS OFFICE
RECEIVED
CLERK'S OFFICE
Agency Analysis of Economic and
Budgetary Effects of Proposed Rulemaking
JAN 1 9 2006
STATE OF ILLINOIS
Pollution Control Board
Agency :
Illinois Pollution Control Board.
Part/Title :
Nitrogen Oxides Emissions (35 Ill. Adm. Code Part 217 )
Illinois Register Citation
:
Please attempt to provide as dollar-specific responses as possible and feel free to add any relevant
explanation .
1
.
Anticipated effect on State expenditures and revenues
.
(a)
Current cost to the agency for this program/activity
.
$ 175,000 per year
(approximately)
(b)
If this rulemaking will result in an increase or decrease in cost, specify the fiscal
year in which this change will first occur and the dollar amount of the effect
.
N/A
(c)
Indicate the funding source, including Fund and appropriation lines, for this
program/activity . Clean Air Act Permit Program Fund (CAAPP), and the
NO, Trading System Fund .
(d)
If an increase or decrease in the costs of another State agency is anticipated,
specify the fiscal year in which this change will first occur and the estimated
dollar amount of the effect
.
N/A
(e)
Will this rulemaking have any effect on State revenues or expenditures not
already indicated above?
No
2 .
Economic effect on persons affected by the rulemaking
:
(a)
Indicate the economic effect and specify the persons affected
:
Positive _ Negative
No effect_X
Persons affected : N/A
Dollar amount per person : N/A
Total statewide cost : N/A
(b)
If an economic effect is predicted, please briefly describe how the effect will
occur . N/A
(c)
Will the rulemaking have an indirect effect that may result in increased
administrative costs? Will there be any change in requirements such as
filing, documentation, reporting or completion of forms?
The rulemaking should have no indirect effect that may result in increased
administrative costs .
SUBPART A: GENERAL PROVISIONS
Section
217.100
Scope and Organization
217.101
Measurement Methods
217.102
Abbreviations and Units
217.103
Definitions
217.104
Incorporations by Reference
SUBPART B: NEW FUEL COMBUSTION EMISSION SOURCES
Section
217.121
New Emission Sources
SUBPART C: EXISTING FUEL COMBUSTION EMISSION SOURCES
Section
217.141
Existing Emission Sources in Major Metropolitan Areas
SUBPART K: PROCESS EMISSION SOURCES
Section
217.301
Industrial Processes
SUBPART 0: CHEMICAL MANUFACTURE
Section
217.381
Nitric Acid Manufacturing Processes
SUBPART T: CEMENT KILNS
Applicability
Control Requirements
Testing
Monitoring
Reporting
Recordkeeping
SUBPART U: NO CONTROL AND TRADING PROGRAM FOR
SPECIFIED NO GENERATING UNITS
Section
217.400
217.402
217.404
217.406
217.408
217.410
Section
RECEIVED
CLERK'S OFFICE
TITLE 35: ENVIRONMENTAL PROTECTION
JAN 1 9 2006
SUBTITLE B: AIR POLLUTION
CHAPTER 1: POLLUTION CONTROL BOARD
STATE
OF ILLINOIS
SUBCHAPTER C
: EMISSION STANDARDS AND LIMITATIOIlg'
Control Board
STATIONARY SOURCES
PART 217
NITROGEN OXIDES EMISSIONS
217.450
Purpose
217.452
Severability
217.454
Applicability
217.456
Compliance Requirements
217.458
Permitting Requirements
217.460
Subpart U NO, Trading Budget
217.462
Methodology for Obtaining NO, Allocations
217.464
Methodology for Determining NO, Allowances from the New Source Set-Aside
217.466
NOx Allocations Procedure for Subpart U Budget Units
217.468
New Source Set-Asides for "New" Budget Units
217.470
Early Reduction Credits (ERCs) for Budget Units
217.472
Low-Emitter Exemption Requirements
217.474
Opt-In Units
217.476
Opt-In Process
217.478
Opt-In Budget Units: Withdrawal from NOx Trading Program
217.480
Opt-In Units: Change in Regulatory Status
217.482
Allowance Allocations to Opt-In Budget Units
SUBPART V: ELECTRIC POWER GENERATION
Section
217.521
Lake of Egypt Power Plant
217.700
Purpose
217.702
Severability
217.704
Applicability
217.706
Emission Limitations
217.708
NOx Averaging
217.710
Monitoring
217.712
Reporting and Recordkeeping
SUBPART W: NO, TRADING PROGRAM FOR ELECTRICAL
GENERATING UNITS
Section
217.750
Purpose
217.752
Severability
217.754
Applicability
217.756
Compliance Requirements
217.758
Permitting Requirements
217.760
NO, Trading Budget
217.762
Methodology for Calculating NO, Allocations for Budget Electrical
Generating Units (EGUs)
217.764
NOr Allocations for Budget EGUs
217.768
New Source Set-Asides for "New" Budget EGUs
217.770
Early Reduction Credits for Budget EGUs
217.774
Opt-In Units
217.776
Opt-In Process
217.778
Budget Opt-In Units : Withdrawal from NOx Trading Program
217.780
Opt-In Units: Change in Regulatory Status
217.782
Allowance Allocations to Budget Opt-In Units
SUBPART X: VOLUNTARY NO, EMISSIONS REDUCTION PROGRAM
Section
217.800
Purpose
217.805
Emission Unit Eligibility
217.810
Participation Requirements
217.815
NOx Emission Reductions and the Subpart X NO, Trading Budget
217.820
Baseline Emissions Determination
217 825
Calculation of Creditable NO. Emission Reductions
217.830
Limitations on NO, Emission Reductions
217.835
NO, Emission Reduction Proposal
217.840
Agency Action
217.845
Emissions Determination Methods
217.850
Emissions Monitoring
217.855
Reporting
217.860
Recordkeeping
217.865
Enforcement
Appendix A Rule into Section Table
Appendix B
Section into Rule Table
Appendix C
Compliance Dates
Appendix D Non-Electrical Generating Units
Appendix E Large Non-Electrical Generating Units
Appendix F
Allowances for Electrical Generating Units
Authority: Implementing Sections 9 .9 and 10 and authorized by Sections 27 and 28 .5 of the
Environmental Protection Act [415 ILCS 5/9 .9, 10, 27 and 28 .5]
.
Source: Adopted as Chapter 2: Air Pollution, Rule 207 : Nitrogen Oxides Emissions, R71-23, 4
PCB 191, April 13, 1972, filed and effective April 14, 1972 ; amended at 2111. Reg. 17, p . 101,
effective April 13, 1978; codified at 7111. Reg. 13609; amended in ROl-9 at 25 Ill . Reg. 128,
effective December 26, 2000 ; amended in RO1-11 at 25 Ill. Reg. 4597, effective March 15, 2001
;
amended in RO1-16 and R01-17 at 25 111 . Reg.5914, effective April 17, 2001 ; amended in R06-
at Ill. Reg . , effective
SUBPART A: GENERAL PROVISIONS
Section 217.101
Measurement Methods
Measurement of nitrogen oxides shall be according to
:
a)
The phenol disulfonic acid proceduresmethed, 40 CFR 60, Appendix A, Method
7, as incorporated by reference in Section 217 .104 of this Subpart(1999) ;
b)
Continuous emissions monitoring pursuant to 40 CFR 75, as incorporated by
reference in Section 217 .104 of this Subpart (1999) ; and
c)
Determination of Nitrogen Oxides Emissions from Stationary Sources
(Instrumental Analyzer Procedure), 40 CFR 60, Appendix A, Method
7E, as
incorporated by reference in Section 217.104 of this Subpart (1999) .
(Source: Amended at Ill. Reg . , effective )
Section 217.102
Abbreviations and Units
a)
The following abbreviations are used in this Part
:
but
EDR
EGU
kg
kg/MW-hr
lb
NQ
lbs/mmbtu
Mg
mmbtu
mmbtu/hr
MWe
MW
MW-hr
NSSA
NO,
peoc
ppm
ppmv
T
b)
The following conversion factors have been used in this Part :
English
2.205 lb
lT
I lb/T
British thermal unit (60 °F)
electronic data report
Electrical Generating Unit
kilogram
kilograms per megawatt-hour, usually used as an hourly emission
rate
pound
Nitrogen Oxides
pounds per million btu, usually used as an hourly emission rate
megagram or metric tonne
million British thermal units
million British thermal units per hour
megawatt of electricity
megawatt; one million watts
megawatt-hour
New Source Set-Aside
Nitrogen Oxides
potential electrical output capacity
parts per million
parts per million by volume
English ton
Metric
1 kg
0.907 Mg
0.500 kg/Mg
Mmbtu/hr
0.293 MW
I lb/mmbtu
1.548 kg/MW-hr
(Source: Amended at Ill. Reg . , effective )
Section 217.104
Incorporations by Reference
The following materials are incorporated by reference . These incorporations do not include any
later amendments or editions
.
a)
The phenol disulfonic acid proceduresmethed, as published in 40 CFR 60,
Appendix A, Method 7 (2000)(1999) ;
b)
40 CFR 96, subparts B, D, G, and H (1999) ;
c)
40 CFR 96.1 through 96.3, 96.5 through 96.7, 96.50 through 96.54, 96.55 (a) &
(b), 96.56 and 96.57 (1999) ;
d)
40 CFR 72, 75 & 76 (2002)(1999) ;
e)
Alternative Control Techniques Document---- NO, Emissions from Cement
Manufacturing, EPA-453/R-94-004, U. S. Environmental Protection Agency-
Office of Air Quality Planning and Standards, Research Triangle Park, N . C .
27711, March 1994 ;
Section 11 .6, Portland Cement Manufacturing, AP-42 Compilation of Air
Emission Factors, Volume 1 : Stationary Point and Area Sources, U .S .
Environmental Protection Agency-Office of Air Quality Planning and Standards,
Research Triangle Park, N . C. 27711, revised January 1995 ;
0
g)
40 CFR 60.13 (2002)(1999) ; and
h)
40 CFR 60, Appendix A, Methods 7, 7A, 7C, 7D, and 7E (2000)(1999)
.
(Source: Amended at Ill. Reg . , effective )
SUBPART T: CEMENT KILNS
Section 217.402
Control Requirements
a)
After May 30, 2004, an owner or operator of any cement kiln subject to the
requirements of this Subpart shall not operate the kiln during the initial control
period or any subsequent control period, unless the owner or operator complies
with subsection (a)(1), (a)(2), (a)(3), (a)(5) or (a)(6) of this Section for kilns that
commenced operation prior to January 1, 1996, or subsection (a)(4) or (a)(6) of
this Section for kilns that commenced operation on or after January 1, 1996
.
1)
The kiln is operated with a low-NO, burner or a mid-kiln firing system ;
2)
The kiln shall not exceed the applicable NO, emission limitation in
pounds per ton of clinker (lb/T), expressed in the rates listed below
:
A)
Long dry kilns -- 5 .1 lb NOx/T of clinker ;
B)
Long wet kilns -- 6 .0 lbNa*/T of clinker ;
C)
Preheater kilns -- 3 .8 lbNOx/T of clinker; or
D)
Preheater/precalciner kilns -- 2.8 lb NO*/T of clinker
.
3)
The kiln achieves a 30 percent or greater reduction from its uncontrolled
baseline, established as set forth in this subsection (a)(3), and complies
with the following :
A)
Uncontrolled baseline emissions shall be determined using the
following equation
:
UBE_ [EF x SPR]
2000 lbs NOx /T
Where :
UBE =
Uncontrolled Baseline NO, emissions expressed in
tons of NO, per control period ;
-EF
= Emissions factor, expressed in lbs of NO x.per ton of
clinker produced per control period, based on one of
the methods in subsection (a)(3)(B) of this Section ;
and
SPR =
Seasonal production rate, expressed in tons of
clinker produced per control period, using the
average of the two highest control period operating
rates from the previous three-year period at the time
the application for the permit with federally
enforceable conditions is submitted to the Agency
pursuant to subsection (a)(3)(C) of this Section
.
B)
Emissions factors shall be determined using one of the following
methods :
i)
The average of the emission factors for the type of kiln
from the Compilation of Air Pollutant Emission Factors
(AP-42) and the Alternative Control Techniques Document
-- NO, Emissions from Cement Manufacturing, as
incorporated by reference in Section 217.104 of this Part ;
ii)
The site-specific emission factor developed from
representative emissions testing, pursuant to 40 CFR 60,
Appendix A, Method 7, 7A, 7C, 7D, or 7E, incorporated by
reference in Section 217 .104 of this Part, based on a range
of typical operating conditions . The owner or operator
must establish that these operating conditions are
representative, subject to approval by the Agency, and must
certify that the emissions testing is being conducted under
representative conditions; or
iii)
An alternate method for establishing the emissions factors,
when submitted with supporting data to substantiate such
emissions factors and approved by the Agency as set forth
in subsection (a)(3)(C) of this Section .
C)
The owner or operator must submit an emission reduction plan to
the Agency and obtain approval of that plan by the Agency. Such
plan shall be effective only when contained as federally
enforceable conditions in a permit. Such plan shall include any
alternate procedures for monitoring, testing, reporting, or
recordkeeping approved by the Agency, or other provisions as
appropriate .
4)
Any kiln subject to this Subpart that commenced operation on or after
January 1, 1996, must meet the more stringent of the requirements of this
Subpart or other CAA requirements, or rules promulgated thereunder,
applicable to kilns. If a kiln is required to comply with a more stringent
requirement pursuant to the CAA, and chooses to do so in lieu of
complying with this Subpart, the owner or operator must submit an
emissions reduction plan that demonstrates that compliance with the CAA
requirement results in emissions reductions that are equal to or exceed the
requirements of this Section and obtain a permit containing federally
enforceable conditions addressing such CAA requirement .
5)
The owner or operator obtains an alternate emissions standard for
operating the kiln pursuant to Section 28.1 of the Act [415 ILCS 5/28 .1 ],
b)
6)
The owner or operator obtains approval by the Agency and USEPA to
allow the kiln to participate in the federal NO . Trading Program. Such
participation will be effective upon issuance of a permit containing all
necessary federally enforceable permit conditions addressing the kiln's
participation in the federal NO, Trading Program pursuant to 40 CFR 96
and the Illinois NO, Trading Program regulations at 35 Ill . Adm. Code
Part 217. The owner or operator is not subject to the requirements of this
Subpart for the duration of its participation in the NO, Trading Program,
except for the requirement to submit the initial compliance report pursuant
to Section 217.408(a) of this Subpart .
(reserved)Not
and in accordance with 35 111 . Adm. Code 104, Subpart D, provisions for
adjusted standards. An adjusted standard or alternate emissions standard
with an alternate compliance schedule shall be granted by the Board to the
extent consistent with federal law. Such alternate shall be effective only
when included as a federally enforceable condition in a permit approved
by USEPA or approved as a SIP revision. The adjusted standard shall
include any alternate procedures for control, compliance, monitoring,
operation, testing, reporting, or recordkeeping that are appropriate . In
addition, the owner or operator must demonstrate, as justification for the
adjusted standard, that the control requirements contained in this Subpart,
as they apply to cement kilns, meet one or more of the following criteria
:
A)
Unreasonable cost of control resulting from plant, age, location or
basic process design ;
B)
Physical impossibility of installing necessary control equipment ; or
C)
Other factors specific to the cement kiln that support an alternate
emissions standard
.
at the source subject to the provisions of subsection (a) of this Section will
NO, SIP Call (63 Fed Reg. 57,355 (October 27, 1998)) that arc located in
,USEPA Region Vor that arc contiguous to Illinois have adopted regu lations to
implement NOD
em issionspursuant to theNO,
for ozonepromulgated by USEPA is effective
or such other states,[115 ILCS
5/9.9(f)}
(Source: Amended at 111. Reg . , effective )
SUBPART U: NO, CONTROL AND TRADING PROGRAM FOR
SPECIFIED NOx GENERATING UNITS
Section 217 .454
Applicability
a)
Except as provided in subsection (e) of this Section, thisThis
Subpart applies to
any fossil fuel-fired stationary boiler, combustion turbine, or combined cycle
system; with a maximum design heat input greater than 250 mmbtu/hr and that is
:
1)
A unit listed in Appendix E of this PartSubpa4, irrespective of any
subsequent changes in ownership, unit designation, or name of the unit; or
2)
A unit not listed in Appendix E of this PartSubpart that
:
A)
At no time serves a generator producing electricity for sale
;
B)
At any time serves a generator producing electricity for sale, if
such generator has a nameplate capacity of 25 MWe or less and has
the potential to use no more than 50% of the potential electrical
output capacity of the unit. Fifty percent of a unit's potential
electrical output capacity shall be determined by multiplying the
unit's maximum design heat input by 0.0488 MWe/mmbtu . If the
size of the generator is smaller than this calculated number, the
unit is subject to the provisions of this Subpart, but if the size of
the generator is greater than this calculated number, the unit is
subject to the provisions of Subpart W of this Part ;
C)
Is part of any source, as that term is defined in 35 Ill . Adm. Code
Section 211 .6130, listed in Appendix E of this Part ; or
D)
Is a unit subject to Subpart W of this Part (excluding any unit listed
in Appendix F of this Part, regardless of any change in ownership
or any change of operator), and the owner or operator makes a
permanent election, at the time of applying for a budget permit
pursuant to this Part, to subject the unit to the requirements of this
Subpart rather than Subpart W of this Part. Any unit for which
such an election is made will not receive an allocation from the
Subpart U or Subpart W NO, Trading Budget .
b)
Those units that meet the above criteria and are subject to the NO, Trading
Program emissions limitations contained in this Subpart are budget units .
c)
Low-emitter status: Notwithstanding subsection (a) of this Section, the owner or
operator of a source budget unit subject to the req uirements ofsubsection (a) of
this Section and listed in Appendix E of this Part may elect low-emitter status for
a budget unit subject to the requirements of subsection (a) of this Section by
obtaining a permit with federally enforceable conditions that meet the
requirements of Section 217 .472(a). Starting with the effective date of such
permit, the unit shall be subject only to the requirements of Section 217.472 . In
addition, for budget units not listed in Appendix E
:
1) The owner or operator shall obtain a permanent transfer of NO,
allowances in an amount that equals or exceeds the permit emission limit
for NOx during the control period from a unit listed in Appendix E of this
Part to an unlisted unit. In no case will a unit electing low-emitter status
have a permit limit greater than 25 tons of NOx per control period. The
transfer will not be effective until the owner or operator follows the
procedures in Section 217 .462(b) of this Subpart .
2) The Agency shall initiate a rulemaking to amend Appendices D, E, and G
of this Part, every three years to reflect any changes to the listed NO,_
allocations, if such changes have occurred
.
d)
The owner or operator of any budget unit not listed in Appendix E of this Part but
subject to this Subpart shall not receive an allocation of NO x allowances from the
Subpart U or Subpart W NO . Trading Budget, except for any allowances from the
NSSAnew source set aside in accordance with Section 217 .468 of this Subpart.
Such unit must acquire NO, allowances in an amount not less than the NOx
emissions from such budget unit during the control period (rounded to the nearest
whole ton) in accordance with the federal NO, Trading Program, Subpart X of
this Part or pursuant to a permanent transfer of NO x allocations pursuant to
Section 217 .462(b) of this Subpart
.
e)
This Subpart does not apply to the following boilers used to combust and
thereby control CO emissions from a fluidized catalytic cracking unit (FCCU),
specifically th? Boiler 112B-2 at the refinery located in Lemont, Illinois ; Boilers
148-3 and 14B-4 at the refinery located in Channahon/Joliet, Illinois ; the waste
heat boiler 60F-1 at the refinery located in Robinson, Illinois; and CO
Heaters/Boilers CCU No. I and CCU No . 2 at the refinery located in Roxana,
Illinois .
subject to this Subpart on tlrc firs
lay
P
promulgated by USEPA is effective.[115 ILCS 5/9 .9(f)}
(Source: Amended at Ill. Reg . , effective )
Section 217 .456
Compliance Requirements
All budget units subject to the requirements of this Subpart must comply with the following :
a)
The requirements of this Subpart and 40 CFR 96, excluding 40 CFR 96 .4(b),
96.55(c) and subparts C, E, and I, as incorporated by reference in Section 217.104
of this Part. To the extent that this Subpart contains provisions which are
inconsistent with any provisions of 40 CFR 96, the owner or operator of budget
units subject to this Subpart shall comply with the provisions of this Subpart in
lieu of those provisions which were incorporated by reference
.
Budget permit requirements
:
I)
The owner or operator of each source with one or more budget units at the
source subject to this Subpart must submit a complete permit application
for a budget permit in accordance with the provisions of Section
217.458(a)(4), (a)(5) or (a)(6), as applicable, to be issued by the Agency
with federally enforceable conditions covering the NO, Trading Program
(budget permit), and that complies with the requirements of Section
217.458 of this Subpart.
2)
The owner or operator of one or more budget units subject to this Subpart
must operate each such budget unit in compliance with such budget permit
or complete budget permit application, as applicable .
3)
The owner or operator of one or more budget units subject to this Subpart,
at the time of filing an application for a permit under this Section, must
submit a complete application for either a permit either incorporating a
source"-wide overdraft account (as such term is defined in 40 CFR 96 .2), or
apermit incorporating unit specific compliance accounts for each budget
unit at the source subject to this Subpart, or both
.
Such election shall be at
the sole discretion of the owner or operator of the source and the Agency
shall incorporate such election into a permit issued to the source pursuant
to this Subpart .
c)
Monitoring requirements :
1)
For budget units subject to the requirements of this Subpart, and which
commence operation on and after January 1, 2000, the owner or operator
of each such budget unit at the source must comply with the monitoring
requirements of 40 CFR 96, subpart H . The account representative of each
such budget unit at the source shall comply with those sections of the
monitoring requirements of 40 CFR 96, subpart H, applicable to an
account representative
.
2)
The compliance of each budget unit subject to the requirements of
subsection (e)(1) or subsection (c)(3)(A) of this Section with the control
period NO, emissions limitation under subsection (d) of this Section shall
be determined by the emissions measurements recorded and reported in
accordance with 40 CFR 96, subpart H
.
3)
For budget units which commenced operation prior to January 1, 2000
:
A)
The owner or operator of each such budget unit at the source must
comply with the requirements of 40 CFR 96, subpart H
; or
B)
If the monitoring requirements of 40 CFR 96, subpart H, are
demonstrated by the source to be technically infeasible as applied
to a budget unit subject to the requirements of this Subpart, the
owner or operator of such budget unit may monitor by an
alternative monitoring procedure for the budget unit approved by
the Agency and the Administrator ofUSEPA pursuant to the
provisions of 40 CFR 75, subpart E. Such alternative monitoring
procedures must be contained as federally enforceable conditions
in the unit's permit .
4)
The compliance of each budget unit subject to the requirements of
subsection (c)(3)(B) of this Section shall be determined by the emissions
measurements recorded and reported in accordance with the federally
enforceable conditions in the budget unit's permit addressing monitoring
as required by subsection (c)(3)(B) of this Section .
d)
Allowance requirements
:
1)
As of November 30 of each year, the allowance transfer deadline, the
account representative
of
each source subject to the requirements
of
this
Subpart must hold allowances available for compliance deductions under
40 CFR 96 .54 for each budget unit at the source subject to this Subpart in
the budget unit's compliance accounts, or the source's overdraft account
.
The number of allowances held in these accounts shall not be less than the
total NOx emissions for the control period (rounded to the nearest whole
ton), as determined in accordance with subsection (c) of this Section, plus
any number of allowances necessary to account for actual utilization
(e.g .,
for testing, start-up, malfunction, and shut down) under 40 CFR 96 .42(e)
for all budget units at the source subject to this Subpart . Compliance with
this provision shall be demonstrated if, as of the allowance transfer
deadline, the sum of the allowances available for compliance deductions
for all budget units at the source subject to this Subpart is equal to or
greater than the total NO x emissions (rounded to the nearest whole ton)
from all budget units at the source subject to this Subpart
.
2)
Allowances shall be held in, deducted from, or transferred among
allowance accounts in accordance with this Subpart and 40 CFR 96,
subparts F and G .
3)
Each ton of NOx emitted by a source with one or more budget units subject
to this Subpart in any control period in excess of the NO x allowances held
by the owner or operator for each budget unit at the source subject to this
Subpart for each control period shall constitute a separate violation of this
Subpart and the Act
.
4)
In order to comply with the requirements of subsection (d)(1) of this
Section, an allowance may not be utilized for a control period in a year
prior to the year for which the allowance was allocated
.
An allowance allocated by the Agency or USEPA under the NO x Trading
Program is a limited authorization to emit one ton of NO
R
. No provision
of the NO x Trading Program, any permit issued or permit application
submitted pursuant to this Subpart, or an exemption under 40 CFR 96 .5
and no provision of law shall be construed to limit the authority of the
United States or the State to terminate or limit this authorization
.
6)
An allowance allocated by the Agency or USEPA under the NO, Trading
Program or pursuant to this Subpart does not constitute a property right
.
7)
Upon recordation by USEPA under 40 CFR 96, subpart F or G, every
allocation, transfer, or deduction of an allowance to or from a budget unit's
compliance account or to or from the source's general or overdraft account
where the budget unit is located is deemed to amend automatically and
become a part of any budget permit of the budget unit . This automatic
amendment of the budget permit shall occur by operation of law and will
not require any further review
.
e)
Recordkeeping and reporting requirements :
1)
Unless otherwise provided, the owner or operator of a source subject to the
requirements of this Subpart must keep at the source each of the
documents listed in subsections (e)(1)(A) through (e)(1)(D) of this Section
for a period of 5 years from the date the document is created . This period
may be extended for cause at any time prior to the end of 5 years in writing
by the Agency or USEPA .
0
Liability
:
A)
The account certificate of representation for the account
representative for the source and each budget unit at the source
subject to the requirements of this Subpart and all documents that
demonstrate the truth of the statements in the account certificate of
representation, in accordance with 40 CFR 96 .13, provided that the
certificate and such supporting documents must be retained on site
at the source beyond such five-year period until such documents
are superseded because of the submission of a new account
certificate of representation changing the account representative
.
B)
All emissions monitoring information submitted ; in accordance
with subsection (c) of this Section, provided that to the extent that
40 CFR 96, subpart H, provides for a three-year period for
recordkeeping, the three-year period shall apply
.
C)
Copies of all reports, compliance certifications, and other
submissions and all records made or required under this Subpart or
the NO, Trading Program or documents necessary to demonstrate
compliance with the requirements of this Subpart or the NOX
Trading Program .
D)
Copies of all documents used to complete a budget permit
application and any other submission under this Subpart or under
the NO, Trading Program .
2)
The account representative of a source and each budget unit at the source
subject to the requirements of this Subpart must submit to the Agency and
USEPA the reports and compliance certifications required under this
Subpart and the NO X Trading Program, including those under 40 CFR 96,
subparts D and H .
I)
No revision of a budget permit shall excuse any violation of the
requirements of the NO x Trading Program or this Subpart that occurs prior
to the date that the revision under such budget permit takes effect .
2)
Each budget source and each budget unit at the source shall meet the
requirements of the NOX Trading Program
.
3)
Any provision of this Subpart or the NO X Trading Program that applies to
a source subject to the requirements of this Subpart (including a provision
applicable to the account representative of the source) shall also apply to
g)
the owner and operator of such source and to the owner and operator of the
budget units subject to the requirements of this Subpart at the source .
4)
Any provision of this Subpart or the NO, Trading Program that applies to
a budget unit subject to the requirements of this Subpart (including a
provision applicable to the account representative of such budget unit)
shall also apply to the owner and operator of such budget unit . Except
with regard to the requirements applicable to budget units with a common
stack under 40 CFR 96, subpart H, the owner and operator and the account
representative of one budget unit shall not be liable for any violation by
any other budget unit of which they are not an owner or operator or the
account representative and that is located at a source of which
they are not
an owner or operator or the account representative
.
5)
Excess emissions requirements : The account representative of a source
that has excess emissions in any control period shall surrender the
allowances as required for deduction under 40 CFR 96 .54(d)(1) .
6)
The owner or operator of a budget unitECU that has excess emissions in
any control period shall pay any fine, penalty, or assessment or comply
with any other remedy imposed under 40 CFR 96 .54(d)(3) and the Act
.
Effect on other authorities : No provision of this Subpart, the NO, Trading
Program, a budget permit application, a budget permit, or a retired budget unit
exemption under 40 CFR 96 .5 shall be construed as exempting or excluding the
owner or operator and, to the extent applicable, the account representative of a
source or budget unit from compliance with any other regulations promulgated
under the CAA, the Act, an approved State implementation plan, or a federally
enforceable permit
.
(Source: Amended at 111. Reg . , effective )
Section 217.460
Subpart U NO, Trading Budget
a)
The initial NOx allowances available for allocation for each control period (the
Subpart U NOx Trading Budget) for budget units subject to the provisions of this
Subpart shall be44,882 tons per control period, subject to adjustment in
accordance with subsections (b), (c) and (d) of this Section, and subject to the
NSSA
new source set aside for budget units subject to this Subpart, as set forth in
Sections 217.462 and 217.464 of this Subpart. The Subpart U NO, Trading
Budget shall be initially allocated as set forth in Appendix E of this Part , as may
be amended from time to time
.
b)
The Agency may adjust the Subpart U NO, Trading Budget available for
allocations in subsection (a) of this Section by adding allowances for budget units
subject to this Subpart opting to become subject to this Subpart pursuant to the
requirements for opt-in units in Sections 217.474 and 217.476 of this Subpart .
c)
The Agency shall adjust the Subpart U NO, Trading Budget available for
allocations in subsection (a) of this Section to remove allowances from units
opting to become exempt pursuant to the requirements for low-emitters in
Sections 217.454(c) and 217 .472 of this Subpart
.
d)
Except as set forth in subsection (e) of this Section, if USEPA adjusts the base
Subpart U NO x Trading Budget of 44,882 allowances, the Agency will adjust
the Subpart U NO, Trading Budget pro-rata .
e)
If USEPA adjusts the Subpart U NO, Trading Budget as to any individual budget
unit, the Subpart U NO x Trading Budget wiljchall not be adjusted pro-rata, and
only the allowance allocation for that budget unit will be adjusted
.
(Source: Amended at Ill. Reg . , effective )
Section 217 .462
Methodology for Obtaining NO, Allocations
a)
Appendix E of this Part identifies the sources with existing budget units subject to
this subpart and the number of NOx allowance allocations that each such budget
unit is eligible to receive each control period, subject to adjustment in accordance
with Section 217.460 of this Subpart and for transfers made in accordance with
subsection (b) of this Section . Each named budget unit's allocation will be
adjusted proportionally based on the adjusted Subpart U NO, Trading Budget as
provided by Section 217.460 of this Subpart
.
b)
The owner or operator of budget units subject to this Subpart may permanently
transfer all or part of their allocation of allowances pursuant to Column 5 of
Appendix E of this Ppart, subject to adjustment in accordance with this Subpart,
to another budget unit subject to this Subpart, or to a budget unit subject to
Subpart W of this Part. Such transfer will be effective by submitting a written
request to the Agency that is signed by the account representative for the
transferring budget unit and containing the account numbersnumber for both the
transferring budget unit and the recipient budget unit . The owner or operator of
budget units subject to this Subpart may not permanently transfer all or part of the
NSSA
new source
set aside indicated as the difference between Column 4 and
Column 5 of Appendix E of this Part
.
c)
Subject to adjustment in accordance with this Subpart, or revocation or revision of
the federal NO, Trading Program or this Subpart, allocations pursuant to
Appendix E of this Part exist for the life of the program, including all or a portion
of any allocation transferred to another budget unit pursuant to the provisions of
this Subpart
.
d) Notwithstanding the provisions of subsections (a) and (c) of this Section for fixed
allocations to budget units listed in Appendix E of this Part, under any of the
circumstances listed in subsections(d)(1)through(d)(3) of this Section, the
Agency will allocate such allowances listed in Appendix E to different budget
units pursuant to the procedures in subsection (e) of this Section . This authority
does not apply to allowances at a source or emission unit subject to or at issue in a
pending bankruptcy action, or where an order for relief has been entered in an
involuntary bankruptcy case such that the debtor, trustee, or other parties in
interest may assert that the owner or operator's interest in the NOx allowances
may be considered property of the estate pursuant to Section 541 (a) of the
Bankruptcy Code (II U .S.C. $ 541(a))
.
1) An owner or operator of a source listed in Appendix E of this Part fails
to have an account representative or have a valid NOx allowance account
with USEPA within twenty-four months after the date that the Agency is
required to make a NOx allocation to that source or budget unit
.
2) A source or a budget unit listed Appendix E which meets all of the
following conditions
:
A) Is permanently shutdown
;
B) Is not replaced ;
C) Withdraws, terminates, or fails to hold the applicable permit; and
D) ,Fails to transfer to another source or budget unit subject to the
requirements of Subpart U its fixed allocation from Appendix E
.
Such transfer must be made within two years of the date that the
Agency was required to make a NOx allocation to the source or
budget unit
.
3) A source or budget unit is sold and the former owner or operator fails to
notify the Agency in writing, within two years after the date that the
Agency was required to make a NO. allocation to the source or budget
unit, whether the former owner has transferred the NOx allocation to the
new owner or operator as part of the sale or has transferred the NOx
allocation to another source or budget unit subject to the requirements of
Subpart U
.
e) In the event that any of the circumstances in subsections (d)(1)through(d)(3)of
this Section occur, the Agency will send a certified letter to the registered NOx
account representative or the owner or operator listed on the source's most
recent operating permit with a notification that the source's or budget unit's
Appendix E allocation has lapsed
.
The owner or operator or account
representative will have 45 days to respond in writing
.
If the Agency does not
receive a response within 45 days with evidence that the source has appointed an
account representative and opened a NO. allowance account pursuant to
subsection (d)(1)of this Section; is not shutdown or transferred as specified in
subsection(d)(2)of this Section ; or that the owner or operator of the source has,
prior to the date of the certified letter, permanently transferred the NOx
allowances to another source or unit in operation pursuant to subsection(d)(3)
of this Section, as applicable, the Agency will deem the allowances forfeited and
allocate the allowances as follows
:
In the case of a lapse under subsection(d)(1)or(d)(2)of this Section, the
allowances will be allocated annually on a pro-rata basis pursuant to the
heat input formula in Section 217.464(b) of this Subpart to sources that
are subject to the requirements of Subpart U and that commenced
operating on or after January 1, 2002, and do not receive an allocation
pursuant to Appendix E of this Part
.
The Agency will post on its NOx
Trading website the availability of such allowances and the deadlines for
submitting an application for these allowances
.
2)
To the extent that more than 100 allowances remain after the Agency
allocates allowances pursuant to subsection (e)(1) above, the Agency
shall allocate these remaining allowances on an annual basis to the
owners or operators of the budget units listed in Appendix E. These
allocations will be made pro-rata according to the allocations listed for
each budget unit in Appendix E . If there are insufficient allowances to
allocate whole allowances, such unallocated allowances shall be retained
by the Agency and will be available for allocation in successive control
periods pursuant to subsection(e)(1)of this Section
.
3)
In the case of a lapse under subsection (d)(3) of this Section, the
allowances will be allocated to the current owner or operator of the
source or emission unit on an annual basis
.
Within two years after
making such an allocation under this Subsection, the Agency will
propose a rulemaking to the Board to amend Appendix E of this Part to
reflect a change in these allocations
.
(Source: Amended at 111. Reg . , effective )
Section 217 .464
Methodology for Determining NO, Allowances from the New Source Set-
Aside
a)
The methodology for calculating the allowances available to be allocated to "new"
budget units as defined by Section 217 .468 ofcubject to this Subpart from the
NSSA new source s
aside is based on the more stringent emission rate of 0 .15
lbs/mmbtu or the permitted NO, emission rate, but not less than 0.055 lbs/mmbtu
.
b)
The general equation for determining allowances is
:
A
=
HI x ER
2000
Where HI =
heat input (in mmbtu/control period) as determined in
accordance with subsection (c) of this Section
.
Where ER =
The NOR emission rate in lbs/mmbtu as determined in
accordance with subsection (a) of this Section
.
Where A =
allowances of NOR/control period
.
c)
The projected heat input shall be determined as set forth below, divided by 2000
lbs/ton :
1)
For "new" budget units subject to this Subpart that have seasonal heat
input from at least 3 control periods prior to the allocation year, the
average of the budget unit's 2 highest seasonal heat inputs from the control
periods 1 to 3 years prior to the allocation year
;
2)
For "new" budget units subject to this Subpart that have seasonal heat
input from only 2 control periods prior to the allocation year, the average
of the budget unit's seasonal heat inputs from the control periods I and 2
years prior to the allocation year ;
3) For "new" budget units subject to this Subpart that have seasonal heat
input from only the control period prior to the allocation year, the heat
input from that control period; or
4)
For "new" budget units subject to this Subpart that did not commence
operation on or before July 16th have not operated for at I
st 77 days of
the control period prior to the allocation year, the budget unit's maximum
design heat input for the control period as designated in the construction
pemait .
(Source: Amended at 111. Reg . , effective )
Section 217.466
NO, Allocations Procedure for Subpart U Budget Units
For each control period, the Agency will allocate the total number of NO, allowances in the
Subpart U NO, Trading Budget apportioned to budget units under Section 217.460 of this
Subpart, subject to adjustment as provided in this Subpart . These allocations will be issued as
provided in subsections (a) and (b) of this Section, as follows
:
a)
The Agency will allocate to each budget unit that is listed in Appendix E of this
Part the number of allowances listed in Column 5 of Appendix E of this Part for
that budget unit for each 3-year period of the program
, except as provided in
Section 217.462 of this Subpart .
The Agency will report these allocations to
USEPA by April Marsh I of 2004, and triennially thereafter
.
b)
The Agency will allocate allowances from the NSSA
new source set aside to
"new" budget units as set forth in Section 217 .468 of this Subpart
.
c)
The Agency will report allocations from theNSSA
new source set aside to
USEPA by MayApril 1 of each year for the following year
.
d)
To the extent that allowances remain in theNSSA
new Gource set aside after any
allocation pursuant to subsection (b) of this Section, the Agency shall allocate any
such remaining allowances pro-rata to the owner or operator of the budget units
listed in Appendix E of this Part to the extent a whole allowance may be allocated
to any such owner or operator
.
of
ch y ar .
If there are insufficient allowances to allocate a whole allowance to
any such owner or operator of a budget unit listed in Appendix E of this Part, such
allowances shall be retained by the Agency in the NSSA
new source set aside .
Any such allowances retained in the new source set-aside shall be accumulated in
the NSSA
new source
set aside and may either
:
1)
Be available for allocation to new budget units for future control periods,
subject to the provisions of Section 217 .468 of this Subpart ; or
2)
If, after any annual allocation to new budget units, there are sufficient
allowances accumulated in the new source set-aside to allocate one or
more whole allowances to the owner or operator of existing budget units
listed in Appendix E of this Part on a pro-rata basis, such accumulated
whole allowances shall be allocated pro-rata to such owner or operators
.
(Source: Amended at Ill. Reg . , effective )
Section 217.468
New Source Set-Asides for "New" Budget Units
a)
For the 2004, 2005 and 2006 control periods, a "new" budget unit is one that
commenced commerc ial operation on or after January 1, 2000. For the 2007 and
later control periods, a "new" budget unit is one that commenced commercial
operation no more than 3 control periods prior to the year the allocation is
requested pursuant to this Section. Those units that commenced commercial
operation on or after January 1, 2000, but before May 31, 2004, become "existing"
budget units on October 1, 2004 . Those units that commenced commerc ial
operation on or after May 31, 2004, become "existing" budget units at the end of
the third control period after they commenced commerc ial operation
.
b)
"New" budget units must have an allowance for every ton of NO, emitted during
the control period as provided in Section 217 .456(d) of this Subpart
.
c)
The Agency will establish a new source set-aside for each control period from
which "new" budget units may purchase NO, allowances . Each NSSA
new
source set aside will be allocated allowances equal to 3% of each source's initial
total Subpart U NO, Trading Budget allocation as reflected in Column 5 of
Appendix E of this Part, which is 145116 allowances, for each control period
.
The allocation for theNSSA
new -source set aside from each source shall be based
on 3% of the source's initial allocation, without regard to subsequent adjustment
to any such source's current allocation, including permanent transfer of allowances
to another source, or revision of the Subpart U NO, Trading Budget by USEPA or
election of low-emitter status
.
d)
A "new" budget unit may request to purchase from the Agency a number of
allowances that is not more than the number of allowances for which it is eligible,
as determined in Section 217 .464 of this Subpart, and subject to the provisions of
this Section .
e)
The account representative of a "new" budget unit under subsection (a) of this
Section may purchase allowances from the NSSA
by
submitting to the Agency a request, in writing or in a format specified by the
Agency, to be allocated allowances for the current control period from the NSSA
new -source set aside . At a minimum, such request shall include all data and
calculations used to support the request . Heat input data shall be submitted with
the request in an electronic spreadsheet or electronic data report (EDR) format
.
The allocation request for each applicable control period must be submitted after
the date on which the Agency issues a construction permit to the "new" budget
unit and by before February 15 before 1 of the control period for which the
allocation is requested
.
1)
The Agency will sell allowances from the NSSA pursuant to the procedures in 35
111. Adm. Code 273.The Agency will notify the account represen tativeby March 1
of the applicable y rof the number ofallowances that arceligible for purchase
for the "new" budget unit pursuant to the requirementsof this Sect ion .
If the
rata basis to "now" budget units requesting allocations p ursuan t to this Section, up
to the number ofallowances requested by ach account representative . Such
this Section
.
allowances were traded in 2003 in the OzoneTransport Region; and
For all years other than 2009, the averageprice at which NO, allewan
were traded in the intcrstatw NO, Trading Program for the preceding
contro l period .
h4
The fees collected by the Agency from the sale of allowances will be distributed
pro-rata to budget units receiving allowances pursuant to Appendix E of this Part
on the basis of allocated allowances, subject to Agency's administrative costs
assessed pursuant to Section 9 .9 of the Act .
(Source: Amended at Ill. Reg . , effective )
Section 217.472
Low-Emitter Exemption Requirements
Starting with the effective date of the permit referred to in Section 217 .454(c), the a budget unit
electing low-emitter status pursuant to the requirements of this Section shall be subject only to
the following requirements: of this Seetien .
a)
For each control period the owner or operator elects low-emitter status, the
federally enforceable permit conditions must
:
1)
Restrict the unit to burning only natural gas, fuel oil, or natural gas and
fuel oil ;
2)
Limit the unit's potential NOx mass emissions for the control period to the
lesser of 25 tons or the sum of allowances that have been permanently
transferred to that unit from another unit listed in Appendix E of this Part
plus the number of allowances allocated to the unit in Appendix E of this
Part and not otherwise allocated pursuant to Section 217 .462(d) or (e) of
this Subpart, or plus any allowances issued for voluntary NO x reductions
meeting the requirements of Subpart X of this Part less
;
3)
Restrict the unit's operating hours to the number calculated by dividing the
25 tons of potential NOx mass emissions as provided in subsection (a)(2)
of this Section by the unit's maximum potential hourly NOx mass
emissions pursuant to subsection (a)(4)of this Section ;
4)
Require that the unit's potential NOx mass emissions shall be calculated by
using the monitoring provisions of 40 CFR 75, or if the unit does not rely
on these monitoring provisions, as follows :
A)
Select the applicable default NO x emission rate
:
0.7 lbs/mmbtu for combustion turbines burning natural gas
exclusively during the control period ; 1 .2 lbs/mmbtu for
combustion turbines burning any fuel oil during the control period
;
1 .5 lbs/mmbtu for boilers burning natural gas exclusively during
the control period; or 2 lbs/mmbtu for boilers burning any fuel oil
during the control period .
B)
Multiply the default NOx emission rate under subsection (a)(4)(A)
of this Section by the unit's maximum rated hourly heat input
which is the higher of the manufacturer's maximum rated hourly
heat input or the highest observed hourly heat input . The owner or
operator of the unit may request in the permit application required
by this subsection that the Agency use a lower value for the unit's
maximum rated hourly heat input. The Agency may approve such
lower value if the owner or operator demonstrates that the
maximum hourly heat input specified by the manufacturer or the
highest observed hourly heat input, or both, are not representative
.
The owner or operator must demonstrate that such lower value is
representative of the unit's current capabilities because
modifications have been made to the unit that permanently limit
'the unit's capacity;
5)
Require that for 5 years at the source that includes the unit, records be
maintained demonstrating that the operating hours restriction, the fuel use
restriction and the other requirements of the permit related to these
restrictions were met; and
6)
Require that the owner or operator of the unit report to the Agency for
each control period the unit's hours of operation (treating any partial hour
of operation as a whole hour of operation), heat input and fuel use by
type
.
This report shall be submitted by November 1
s ' of each year the unit
elects low-emitter status
.
b)
The Agency will notify the USEPA in writing of each unit electing low-emitter
status pursuant to the requirements of subsection (a) of this Section and when any
of the following occurs :
1)
The permit with federally enforceable conditions that includes the
restrictions in subsection (a) of this Section is issued by the Agency
;
2)
Such permit is revised to remove any such restriction ;
3)
Such permit includes any such restriction that is no longer applicable ; or
4)
The unit does not comply with any such restriction
.
c)
The unit shall become subject to the requirements of this Subpart if, for any
control period under this Section, the fuel use restriction or the operating hours
restriction under subsection (a) of this Section is removed from the unit's permit
or otherwise is no longer applicable, or the unit does not comply with the fuel use
restriction or the operating hours restriction under subsection (a) of this Section
.
Such unit shall be treated as commencing operation on September 30 of the
control period for which the fuel use restriction or the operating hours restriction
is no longer applicable or during which the unit does not comply with the fuel use
restriction or the operating hours restriction
.
d)
Only The owner
or operator ofa unit located at a source to which the Agency has
ever allocated allowances under Appendix E of this Part may elect low-emitter
status
.
In that
case, tThe Agency will reduce the Subpart U NOx budget by the
number of allowances equal to the amount of NO x emissions the unit is permitted
to emit during the control period, pursuant to a federally enforceable condition in
the unit's permit
. In no case will the Agency deduct more allowances than the sum
of allowances that the unit was allocated in Appendix E of this Part plus any
allowances that have been permanently transferred to that budget unit, as the same
may be limited by the requirements of Section 217 .462(d) or (e) of this Subpart
.
If the owner or operator has requested a permit emission limit greater than its
allocation for the unit as set forth in Appendix E of the Part, tThe owner or
operator ofaunit electing low emitter statua may demonstrate that it holds
sufficient allowances to cover the unit's NOx emissions by offsetting the
emiss ions from such un it, not to exceed 25 tons per control period its permitted
em iss ion limit as included in its federally enforceablepermit, with allowances
issued for voluntary NOx reductions meeting the requirements of Subpart X of
this Part or that there has a been a permanent transfer of allowances from another
unit listed in Appendix E
. The Agency will not reduce the Subpart U NOx budget
by the allowances issued for NOx reductions obtained in accordance with Subpart
X of this Part
.
(Source: Amended at Ill. Reg. , effective )
SUBPART W: NOxTRADING PROGRAM FOR ELECTRICAL GENERATING
UNITS
Section
217.754
Applicability
a)
The following fossil fuel-fired stationary boilers, combustion turbines or
combined cycle systems are electrical generating units (EGUs) and are subject to
this Subpart
:
1)
Any unit serving a generator that has a nameplate capacity greater than
25
MWe and produces electricity for sale, excluding those units listed in
Appendix D of this Part.
2)
Any unit with a maximum design heat input that is greater than
250
mmbtu/hr that commences operation on or after January 1, 1999, serving
at any time a generator that has a nameplate capacity of
25
MWe or less
and has the potential to use more than
50%
of the potential electrical
output capacity of the unit. Fifty percent of a unit's potential electrical
output capacity shall be determined by multiplying the unit's maximum
design heat input by
0.0488
MWe/mmbtu. If the size of the generator is
greater than this calculated number, the unit is an EGU subject to the
provisions of this Subpart
.
b)
Those units that meet the above criteria and are subject to the NO, Trading
Program emissions limitations contained in this Subpart are budget EGUs
.
c)
Low em itter status :
Notwithstanding subsection (a) of this Sect ion, the
owner or
operator ofabudget EGU under subsection (a) of this Section may e lect low
the requirements of subsection(c)(1)of this Sect ion
.
Starting with the effective
11 not beabudget EGU and shall be subject only
to the requ irementsof this subsect ion (c) .
1) For ach control period under this subsection (c), the federally enforceable
A) Restrict the ECU to burning only natura l gas, fuel oil, or natural
gas and fuel oil ;
B)-Limit the EGU's potential NO,
max emiss ions for the control
period to
25
tons orless ;
C) Restrict the ECU's operating hours during the control period to the
D) Require that the ECU's potentia l NO,
calculated by using the monitoring provisions of 10 CFR 75
or, if
the EGU does not rely on these monitoring provi sions, by using the
applicable default rate, as follows
:
i) Select the applicable default NO,
emission rate from one of
the following
:
0.7 lb/mmbtu for combustion turbines burning natural gas
1 .2 lbs/mmbtu for combustion turbines burning any fuel oil
during the control period ;
1.5 lbs/mmbtu for boilers burning natura l gas exclusive ly
during the contro l period ; or
2 lbs/mmbtu for boilers burning any fuel oil during the
control period
.
ii) Multiply the default NO,
em iss ion rate under
subsect ion
(c)(1)(D)(i) of this Section by the ECU's unit specific
input, or both, arc not representat ive. The
owner or
representat ive of the ECU's current capabilities because
modifications have been made to the EGU that permanent ly
limit the ECU's capacity ;
E) Require that the owner or operatorof the ECU retainfor five y
irs,
requ irements of the permit related to these restrictions weremet ;
and
F) Require that the owner or operator of the EGU report to the
November 1 of
ch year he ECU elects low emitter status .
2) The Agency will notify USEPA in writing of ach EGU electing low
em itter status pursuant to the requirements ofsubsection (c)(1) of this
Section and when any of the following occurs :
restrictions in subsect ion (c)(1) of this Section is i° ..ued by the
Agency ;
C) Such permit includes any such restrict ion that is no longer
applicable ; or
D) The EGU does not comply with any such restr ict ion .
3) The EGU shall become a budget EGU, subject to the requirementsof this
Subpart if, for any contro l period under subsection (c) of this Section, the
fuel use restr iction or the operating hours restriction under subsect ion
(c)(1) of this Section is removed from the EGU's permit or otherwise
longer applicable, or the EGU does notcomply with the fuel
aunit under subsection (a)(1) of this Section, commencing commerci al
operation, on September 30 of they
rprior to the control period for
which the fuel use restrict ion
or the operating hours restriction is no
longer
applicable or during which the EGU does not comply with the fuel use
restriction or the operating hours restriction .
4)
The owneror-operator of an EGU to which the Agency has ever allocated
reduce the EGU trading budget by the number of allowances
corresponding to the amount ofNO,
em issions the ECU is permitted to
emit during the contro l period as set forth in the EGU's federally
enforcble state operating permit .
d)
Notwithstanding the provisions in subsection (a) of this Section, sources may opt-
in to the NO, Trading Program and will receive allowance allocations consistent
with applicable requirements, if they meet the requirements for a budget opt-in
unit pursuant to Sections 217 .774 through 217.782 of this Part .
(Source: Amended at Ill. Reg . , effective )
Section 217 .756
Compliance Requirements
All EGUs subject to the requirements of this Subpart must comply with the following
:
a)
The requirements of this Subpart and 40 CFR 96 (excluding 40 CFR 96 .4(b) and
96.55(c), and excluding 40 CFR 96, Subparts C, E, and I) as incorporated by
reference in Section 217.104 of this Part .
b)
Permit requirements
:
1)
The owner or operator of each source with one or more budget EGUs at
the source must apply for a permit issued by the Agency with federally
enforceable conditions covering the NO, Trading Program ("budget
permit") that complies with the requirements of Section 217 .758 of this
Part .
The owner or operator of each budget source and each budget EGU at the
source must operate the budget EGU in compliance with such budget
permit .
c)
Monitoring requirements
:
1)
The owner or operator of each budget source and each budget EGU at the
source must comply with the monitoring requirements of 40 CFR 96,
subpart
. The account representative of each budget source and each
budget EGU at the source must comply with those sections of the
monitoring requirements of 40 CFR 96, subpart H, applicable to an
account representative
.
2)
The compliance of each budget EGU with the budget emissions limitation
under subsection (d) of this Section shall be determined by the emissions
measurements recorded and reported in accordance with 40 CFR 96,
subpart H
.
d)
NO, requirements :
1)
By November 30 of each year, the allowance transfer deadline, the account
representative of each budget source and each budget EGU at the source
shall hold allowances available for compliance deductions under 40 CFR
96.54 in the budget ECU's compliance account or the source's overdraft
account. The number of allowances held shall not be less than the budget
ECU's total tons of NO, emissions for the control period, rounded to the
nearest whole ton, as determined in accordance with 40 CFR 96, subpart
H, plus any number necessary to account for actual utilization (e.g., for
testing, start-up, malfunction, and shut down) under 40 CFR 96 .42(e) for
the control period
.
2)
Each ton of NO, emitted in excess of the number
of
NO, allowances held
by the owner or operator for each budget EGU for each control period
shall constitute a separate violation of this Part and the Act
.
3)
A budget EGU shall be subject to the monitoring and NO, requirements of
subsections (c)(1) and (d)(1) of this Section starting on the later of May
31, 2004, or the date on which the EGU commences operation
. OR THE
FIRST DAY OF THE CONTROL SEASON SUBSEQUENT TO THE
CALENDAR YEAR IN WHICH ALL OF THE OTHERSTATES
SIP CALL (63 Fed .
Reg. 57355 (October 27, 1998)) THAT ARE LOCATED IN USEPA
a
.
e
.
9,
--e- .
ADOPTED REGULATIONS TO IMPLEMENT NOx TRADING
.-_ a -
P.-- \
.-_ 9 -
9 . - 9_ .9
xSIP CALL, AND SUC14
REGULATIONS HAVE RECEIVED FINAL APPROVAL BY USEPA
"
SrS PART OF THE RESPECTIVE STATES' SIPS FOR OZONE, OR A
4
•
e
EFFECTIVE. [115 ILCS 5/9 .9(f)}
4)
Allowances shall be held in, deducted from, or transferred among
allowance accounts in accordance with this Subpart and 40 CFR 96,
subparts F and G, and Sections 217 .774 through 217 .782 ofthis-
SubpartPart .
5)
In order to comply with the requirements of subsection (d)(1) of this
Section, an allowance may not be utilized for a control period in a year
prior to the year for which the allowance is allocated
.
6)
An allowance allocated by the Agency or USEPA under the NO, Trading
Program is a limited authorization to emit one ton of NO, in accordance
with the NO, Trading Program . No provision
of
the NO, Trading
Program, the budget permit application, the budget permit, or a retired unit
exemption under 40 CFR 96 .5, and no provision of law shall be construed
to limit the authority of the United States or the State to terminate or limit
this authorization .
7)
An allowance allocated by the Agency or USEPA under the NO, Trading
Program does not constitute a property right .
8)
Upon recordation by USEPA under 40 CFR 96, subpart F or G, or Section
217.782 of this Part, every allocation, transfer, or deduction of an
allowance to or from a budget EGU's compliance account or to or from
the overdraft account of the budget source where the budget EGU is
located is deemed to amend automatically, and become a part of, any
budget permit of the budget EGU. This automatic amendment of the
budget permit shall be deemed an operation
of
law and will not require any
further review .
e)
Recordkeeping and reporting requirements :
1)
Unless otherwise provided, the owner or operator
of
the budget source and
each budget EGU at the source shall keep on site at the source each
of
the
documents listed in subsections (e)(1)(A) through (e)(1)(D) of this Section
for a period of five years from the date the document is created . This
period may be extended for cause, at any time prior to the end of five
years, in writing by the Agency or USEPA
.
A)
The account certificate of representation of the account
representative for the source and each budget EGU at the source,
all documents that demonstrate the truth of the statements in the
account certificate of representation, in accordance with 40 CFR
96.13, provided that the certificate and such supporting documents
must be retained on site at the source beyond such five-year period
until such documents are superseded because of the submission of
a new account certificate of representation changing the account
representative .
B) All emissions monitoring information, in accordance with 40 CFR
96, subpart H, provided that to the extent that 40 CFR 96, subpart
H provides for a three-year period for recordkeeping, the three-year
period shall apply
.
C)
Copies of all reports, compliance certifications, and other
submissions and all records made or required under the NO,
Trading Program or documents necessary to demonstrate
compliance with the requirements of the NO, Trading Program or
with the requirements of this Subpart
.
f)
Liability :
g)
D)
Copies of all documents used to complete a budget permit
application and any other submission under the NO, Trading
Program .
The account representative of a budget source and each budget EGU at the
source must submit to the Agency and USEPA the reports and compliance
certifications required under the NO, Trading Program, including those
under 40 CFR 96, subparts D and H, and Section 217 .774 of this Part .
1)
No revision of a permit for a budget EGU shall excuse any violation of the
requirements of the NO, Trading Program that occurs prior to the date that
the revision to such budget permit takes effect
.
2)
Each budget source and each budget EGU shall meet the requirements of
the NO. Trading Program
.
Any provision of the NO, Trading Program that applies to a budget source
(including any provision applicable to the account representative of a
budget source) shall also apply to the owner and operator of such budget
source and to the owner and operator of each budget EGU at the source
.
4)
Any provision of the NO, Trading Program that applies to a budget EGU
(including any provision applicable to the account representative of a
budget EGU) shall also apply to the owner and operator of such budget
EGU. Except with regard to the requirements applicable to budget EGUs
with a common stack under 40 CFR 96, subpart H, the owner and operator
and the account representative of one budget EGU shall not be liable for
any violation by any other budget EGU of which they are not an owner or
operator or the account representative
.
5)
The account representative of a budget EGU that has excess emissions in
any control period shall surrender the allowances as required for deduction
under 40 CFR 96 .54(d)(1) .
6)
The owner or operator of a budget EGU that has excess emissions in any
control period shall pay any fine, penalty, or assessment or comply with
any other remedy imposed under 40 CFR 96 .54(d)(3) and the Act
.
Effect on other authorities . No provision of the NO, Trading Program, a budget
permit application, a budget permit, alow emitter exemption und er Section
217.751(c) of this Subpart, or a retired unit exemption under 40 CFR 96 .5 shall be
construed as exempting or excluding the owner and operator and, to the extent
applicable, the account representative of a budget source or budget EGU, from
compliance with any other regulation promulgated under the CAA, the Act, an
approved State implementation plan, or a federally enforceable permit
.
(Source: Amended at Ill. Reg . , effective )
Section 217 .760
NO, Trading Budget
The NO, trading budget available for allowance allocations for each control period shall be
determined as follows
:
a)
The.total base EGU trading budget is 30,701 tons per control period subject,
however, to the following
:
1)
In 2004 through 2006, 5% of this number shall be allocated to the NSSA
new source
set aside under Section 217 .768 of this Part, resulting in an
EGU trading budget of 29,166 tons available for allocation per control
period; and
2)
In 2007 and thereafter, 2% of this amount shall be allocated to the NSSA
new source
set aside, resulting in an EGU trading budget of 30,087 tons
available for allocation per control period
.
b)
(reserved)
availablefor allocation in subsection (a) of this Section to remove allowances
low em itters in Section 217 .751(c)(1) of this Part .
c)
ifUSE PA adjusts the total base EGU trading budget for any rgason, the Agency
will adjust the budget pro rata.
(Source: Added at 25 Ill. Reg. 128, effective December 26, 2000)
Section 217 .764
NO, Allocations for Budget EGUs
For each control period, the Agency will allocate the total number of NO, allowances in the
trading budget apportioned to budget EGUs under Section 217 .760 of this Part. These
allocations will be issued as provided in subsections (a) through (f) of this Section and Section
217.768 for this Part of new sources . Specifically
:
a)
For control periodsln 2004, 2005, and 2006 (or the first three y
rs of the
p
fegram) :
1)
The Agency will allocate to each budget EGU that is listed in Appendix F
of this Part the number
of
allowances listed in Column 7
of
Appendix F
of
this Part for that budget EGU, as well as any allowances that are not
allocated from the NSSA
new source set aside to budget EGUs in
subsection (a)(2) of this Section. Any such allowances from the NSSA
new source
set aside will be allocated to budget EGUs listed in Appendix
F of this Part pursuant to 217.768(j) of this Part
.
2)
The Agency will allocate allowances from the NSSA
new source
Get aside
to budget EGUs that commenced commercial operation on or after January
1, 1995, pursuant to Section 217.768 of this Part .
3)
The Agency will report these allocations to USEPA at the time it submits
the SIP, except for the allocations from the NSSA. These allocations
shall be posted on or before the May 1" prior to the applicable control
period .
b)
For control periodln 2007
1)
The Agency will allocate to each budget EGU that is listed in Appendix F
of this Part the number of allowances listed in Column 8 of Appendix F
for that budget EGU, and any allowances that are not allocated to budget
EGUs under subsection (b)(2) of this Section will be allocated as provided
in subsection (b)(4) of this Section
.
2)
The Agency will apportion to each budget EGU that commenced
commercial operation on or after January 1, 1995, and on or before May 1,
2003, allowances as calculated in the following equation
:
A
_ 0.80x(HIxER)
2000
Where :
HI = heat input (in mmbtu/control period) as determined
in Section 217.762(b) of this Part
.
ER = the NO, emission rate in lbs/mmbtu, as determined
in Section 217.762(a)(2) of this Part
.
A =
allowances of NO R/control period
.
3)
Notwithstanding subsection (b)(2) of this Section, if the total number of
allowances determined by subsection (b)(2) of this Section is more than
6,017, which is the number of allowances remaining in the trading budget
after allocations have been made to budget EGUs in subsection (b)(1) of
this Section, the Agency will prorate the number of NO, allowances
available to budget EGUs pursuant to the criteria in subsection
(b)(2) of
this Section so that the total number of allowances allocated to these
budget EGUs does not exceed 6,017
.
4)
If the total number of allowances allocated pursuant to subsection
(b)(2) of
this Section is less than 6,017, which is the number of allowances
remaining in the trading budget after allocations have been made to budget
EGUs in subsection (b)(1) of this Section, the Agency will allocate the
remaining allowances to budget EGUs as follows
:
A)
For budget EGUs in subsection (b)(1) of this Section, the pro-rata
allocation shall be determined by the heat input calculated pursuant
to Section 217 .762(b) of this Part, multiplied by the emission rate
in Section 217.762(a)(1) of this Part .
B)
For budget EGUs in subsection (b)(2) of this Section, the pro-rata
allocation shall be determined by the heat input calculated pursuant
to Section 217.762(b) of this Part, multiplied by the emission rate
in Section 217.762(a)(2) of this Part
.
5)
The Agency will allocate allowances from the NSSA
new source set aside,
pursuant to Section 217 .768 of this Part, to budget EGUs that
commenceeem
;,enee
commercial operation after May 1, 2003 , and
before May 2, 2008
period .
!i
6)
The Agency will report these allocations to USEPA by April 1, 2004,
except for allocations from the NSSA
new source set aside, which the
Agency_ will report by May 1, 2007
.
c)
For control periodIn 2008 (or the fifth y
rof the program)
:
I)
The Agency will allocate to each budget EGU that is listed in Appendix F
of this Part the number of allowances listed in Column 8 of Appendix F
for that budget EGU, and any allowances that are not allocated to budget
EGUs under subsection (cb)(2) of this Section will be allocated as
provided in subsection (cb)(4) of this Section
.
2)
The Agency will apportion to each budget EGU that commenced
commercial operation on or after January 1, 1995, and on or before May 1,
2004, allowances as calculated in the following equation
:
A
0.80 x (HI x ER)
=
2000
Where :
HI =
heat input (in mmbtu/control period) as determined
in Section 217 .762(b) of this Part
.
ER =
the NOR emission rate in lbs/mmbtu, as determined
in Section 217 .762(a)(2) of this Part
.
A = allowances of NOR/control period
.
3)
Notwithstanding subsection (c)(2) of this Section, if the total number of
allowances determined by subsection (c)(2) of this Section is more than
6,017, which is the number of allowances remaining in the trading budget
after allocations have been made to budget EGUs in subsection (c)(1) of
this Section, the Agency will prorate the number of NO, allowances
available to budget EGUs pursuant to the criteria in subsection
(c)(2) of
this Section so that the total number of allowances allocated to these
budget EGUs does not exceed 6,017
.
4)
If the total number of allowances allocated pursuant to subsection
(c)(2) of
this Section is less than 6,017, which is the number of allowances
remaining in the trading budget after allocations have been made to budget
EGUs in subsection (c)(1) of this Section, the Agency will allocate the
remaining allowances to budget EGUs as follows
:
A)
For budget EGUs in subsection (c)(1) of this Section, the pro-rata
allocation shall be determined by the heat input calculated
pursuant to Section 217 .762(b) of this Part, multiplied by the
emission rate in Section 217.762(a)(1) of this Part .
B)
For budget EGUs in subsection (c)(2) of this Section, the pro-rata
allocation shall be determined by the heat input calculated pursuant
to Section 217.762(b) of this Part, multiplied by the emission rate
in Section 217.762(a)(2) of this Part
.
5)
The Agency will allocate allowances from the NSSA
new source set aside,
pursuant to Section 217 .768 of this Part, to budget EGUs thatcommence
commenced commercial operation after May 1, 2004
, and before May 2,
2009 and that have not
operated for the full 2001 contro l period .
6)
The Agency will report these allocations to USEPA by April 1, 2005,
except for allocations from the NSSA
new source set aside, which the
Agency will report by May 1, 2008 .
d)
For control periodln 2009 (or the sixth year of the program)
:
1)
The Agency will allocate to each budget EGU that is listed in Appendix F
of this Part the number of allowances listed in Column 9 of Appendix F
for that budget EGU and any allowances that are not allocated to budget
EGUs under subsection (d)(2) of this Section will be allocated as provided
in subsection (d)(4) of this Section
.
2)
The Agency will apportion to each budget EGU that commence
d commercial operation on or after January 1, 1995, and on or
before May 1, 2005, allowances calculated in the following equation
:
P
0.50
x
(HI x ER)
2000
Where :
HI =
heat input (in mmbtu/control period) as determined
in Section 217.762(b) of this Part
.
ER =
the NO, emission rate in lbs/mmbtu, as determined
in Section 217.762(a)(2) of this Part
.
A=
allowances of NOR/control period
.
3)
Notwithstanding subsection (d)(2) of this Section, if the total number of
allowances determined by subsection (d)(2) of this Section is more than
15,043, which is the number of allowances remaining in the trading budget
after allocations have been made to budget EGUs in subsection (d)(1) of
this Section, the Agency will prorate the total number of NO, allowances
available to budget EGUs that received allowances pursuant to the criteria
in subsection (d)(2) of this Section so that the total number of allowances
allocated to these budget EGUs does not exceed 15,043
.
4)
If the total number of allowances allocated pursuant to subsection (d)(2) of
this Section is less than 15,043, which is the number of allowances
remaining in the trading budget after allocations have been made to budget
EGUs in subsection (d)(1) of this Section, the Agency will allocate the
remaining allowances to budget EGUs as follows
:
A)
For budget EGUs in subsection (d)(1) of this Section, the pro-rata
allocation shall be determined by the heat input calculated pursuant
to Section 217 .762(6) of this Part, multiplied by the emission rate
in Section 217.762(a)(1) of this Part
.
B)
For budget EGUs in subsection
(d)(2) of this Section, the pro-rata
allocation shall be determined by the heat input calculated pursuant
to Section 217 .762(b) of this Part, multiplied by the emission rate
in Section 217.762(a)(2) of this Part .
5)
The Agency will allocate allowances from theNSSA
new Source set aside,
pursuant to Section 217 .768 of this Part, to budget EGUs that commenced
commercial operation after May 1, 2005
, and before May 2, 201 Oand that
have not operated for the full 2005 control period .
6)
As of April 30, 2009, if the number of allowances in the NSSA-new
cource set aside exceeds 3% of the total number of tons of NO, emissions
in the trading budget apportioned to budget EGUs as determined pursuant
to Section 217 .768(i) and (j) of this Part, the number of allowances above
3% will be allocated to budget EGUs receiving allowances pursuant to this
subsection (d) .
7)
The Agency will report these allocations to USEPA by April 1, 2006,
except for allocations from the NSSA
now source set aside, which the
Agency will report by May 1, 2009
.
e)
For control periodln 2010 (or the seventh y
rof the program) :
1)
The Agency will allocate to each budget EGU that is listed in Appendix F
of this Part the number of allowances listed in Column 9 of Appendix F
for that budget EGU and any allowances that are not allocated to budget
EGUs under subsection (e)(2) of this Section as provided in subsection
(e)(4) of this Section
.
2)
The Agency will assign to each budget EGU that commencecomme„cca
commercial operation on or after January 1, 1995, and on or before May 1,
2006, allowances as calculated in the following equation
:
_ 0.50
x (HI x ER)
A
2000
Where :
HI =
heat input (in mmbtu/control period) as determined
in Section 217 .762(b) of this Part
.
ER
=
the NO, emission rate in lbs/mmbtu, as determined
in Section 217.762(a)(2) of this Part .
A =
allowances of NO N/control period
.
f)
3)
Notwithstanding subsection (e)(2) of this Section, if the total number of
allowances determined by subsection (e)(2) of this Section is more than
15,043, which is the number of allowances remaining in the trading budget
after allocations have been made to budget EGUs in subsection (e)(1) of
this Section, the Agency will prorate the total number of NO . allowances
allocated to budget EGUs that received allowances pursuant to the criteria
in subsection (e)(2) of this Section so that the total number of allowances
allocated to these budget EGUs does not exceed 15,043
.
4)
If the total number of allowances allocated pursuant to subsection (e)(2) of
this Section is less than 15,043, which is the number of allowances
remaining in the trading budget after allocations have been made to budget
EGUs in subsection (e)(1) of this Section, the Agency will allocate the
remaining allowances to budget EGUs as follows
:
A)
For budget EGUs in subsection (e)(1) of this Section, the pro-rata
allocation shall be determined by the heat input calculated pursuant
to Section 217 .762(b) of this Part, multiplied by the emission rate
in Section 217 .762(a)(1) of this Part
.
B)
For budget EGUs in subsection (e)(2) of this Section, the pro-rata
allocation shall be determined by the heat input calculated pursuant
to Section 217 .762(b) of this Part, multiplied by the emission rate
in Section 217 .762(a)(2) of this Part
.
5)
The Agency will allocate allowances from the NSSA
new source
set as ide,
pursuant to Section 217.768 of this Part, to budget EGUs that
commenceconm3enced commercial operation after May 1, 2006 , and
before May 2, 2011
6)
As of April 30, 2010, if the number of allowances in the NSSA-new
source setaside exceeds 3% of the total number of tons of NO x emissions
in the trading budget apportioned to budget EGUs as determined pursuant
to Section 217 .768(1) and (j) of this Part, the number of allowances above
3% will be allocated to budget EGUs receiving allowances pursuant to this
subsection (e)
.
7) The Agency will report these allocations to USEPA by April 1, 2007,
except for allocations from the NSSA
new source set aside, which the
Agency will report by May 1, 2010 .
For control periodln 2011(or the eighth y
r) of the program and annually
thereafter :
1)
The Agency will apportion the available NO, allowances to each budget
EGU based on its heat input determined in Section 217 .762(b) of this Part,
multiplied by :
A)
For budget EGUs that commenced commercial operation prior to
January 1, 1995, the NO, emission rate determined in Section
217.762(a)(1) of this Part
.
B) For budget EGUs thatcommencesd commercial
operation on or after January 1, 1995, the NO, emission rate
determined in Section 217.762(a)(2) of this Part
.
2)
The Agency will allocate allowances from theNSSA
new source set aside,
pursuant to Section 217.768 of this Part, to budget EGUs that
commenceeemmenced commercial operation after May Is` ofthe control
period fivefour years prior to the year in which allocations are made and
that have not operated for the full contro l period four y
rs prior to the
y ar in which the allocat ions arebeing made .
3)
As of April 30, 2011, if the number of allowances in the NSSA-new
source set aside exceeds 3% of the total number of tons of NO, emissions
in the trading budget apportioned to budget EGUs as determined pursuant
to Section 217.768(e) and (f) of this Part, the number of allowances above
3% will be allocated to budget EGUs receiving allowances pursuant to this
subsection (f)
.
4)
The Agency will report these allocations to USEPA by April 1 of each
year that is three years prior to the year in which the allocations are being
made, except for allocations from the NSSA
now source set aside, which
the Agency will report by May 1 of each year in which the allocations are
being made .
BOARD NOTE: Becauseof litigation involving the NO, SIP Call, Michigan v.EPA, No. 98
1197, 2000 WL 180650 (D.C.Cir. March 3, 2000), they ars defining the contro l periodsmay
change. Should this occur, the dates sot forth under
ach y will be considered to adjust
correspondingly.
(Source: Amended at Ill. Reg . , effective )
Section 217.768
New Source Set-Asides for "New" Budget EGUs
a)
"New" budget EGUs
1)
A "new" budget EGU is one that commencescommenced commercial
operation on or after January 1, 1995, and does not receive allowances
pursuant to Section 217.764 of this Part .
2)
"New" budget EGUs must have an allowance for every ton of NO, emitted
during the control period as provided in Section 217 .756(d) of this Part
.
3)
A "new" budget EGU may request from the Agency a number of
allowances that is not more than the number of allowances for which it is
eligible, as determined in subsection (e) of this Section
.
b)
The Agency shall apportion allowances from the NSSA
new sourceset aside as
follows :
1)
For 2004, 2005, and 2006, to budget EGUs that commenceeommen
commercial operation on or after January 1, 1995 ; and
2)
For 2007 and thereafter, to budget EGUs that have not operated the full
control period four years prior to the control period for which the
allocation is being made .
c)
The Agency will establish a NSSA
new source
set aside for each control period .
Each NSSA
new source set aside will be allocated allowances equal to :
1)
5% of the EGU trading budget in 2004, 2005, and 2006, which is 1,535
allowances, subject to adjustment to reflect additions or deletions to the
EGU trading budget ;
2)
2% of the EGU of the trading budget in 2007 and thereafter, which is 614
allowances, subject to adjustment to reflect additions or deletions to the
EGU trading budget .
3)
As of April 30 of the applicable year, beginning in 2009 and thereafter, if
the number of allowances in the NSSA
new source
set aside is greater than
or equal to 3% of the total number of tons of NO, emissions in the trading
budget apportioned to budget EGUs, which is 921 allowances, subject to
adjustment to reflect additions or deletions to the EGU trading budget,
pursuant to subsections (i) and (j) of this Section, the number of
allowances above 3% will be allocated to budget EGUs receiving
allowances pursuant to Section 217.764 of this Subpartat . These
allowances shall be allocated on a pro-rata basis according to heat input . If
there are insufficient allowances to allocate a whole allowance to existing
budget units under Section 217 .764, such allowances shall be retained by
the Agency in the NSSA until the next control period. Such allowances
shall be available for allocation to new units . If after any annual allocation
to new units then the Agency shall allocate these allowances to existing
units pursuant to the provisions of this subsection
.
d)
The account representative of a "new" budget EGU under subsection (a) of this
Section may obtain allowances from the NSSA
new source set aside by
submitting to the Agency a request, in writing or in a format specified by the
Agency, to be allocated allowances for the current control period from the NSSA
new seuree set aside . Such request shall include, at a minimum, all data and
calculations used to support the claim . Heat input data shall be submitted with the
request in. an electronic spreadsheet or EDR format
. The allocation request for
each applicable control period must be submitted after the date on which the
Agency issues a construction permit to the budget EGU and by February 15 before
ls4areh-1 of the control period for which the allocation is requested
.
e)
In an allocation request under subsection (d) of this Section, the account
representative may request allowances for a control period in a number that does
not exceed the projected heat input in mmbtu during the applicable control period
multiplied by the more stringent of 0 .15 lb/mmbtu or the permitted emission rate,
but no more stringent than 0 .055 lb/mmbtu. The projected heat input shall be
determined as set forth below, divided by 2000 lbs/ton
:
1)
For "new" budget EGUs that have heat input from at least three control
periods prior to the allocation year, the average of the budget EGU's two
highest seasonal heat inputs from the control periods one to three years
prior to the allocation year
;
2)
For "new" budget EGUs that have heat input from only two control
periods prior to the allocation year, the average of the budget EGU's
seasonal heat inputs from the control periods one and two years prior to
the allocation year ;
3)
For "new" budget EGUs that commence commercial operation on or prior
to July 16 th of the control period prior to the allocation year and have
seasonal heat input from only the control period prior to the allocation
year, the heat input from that control period;-er
4)
For "new" budget EGUs that have commence commenced commercial
operation after July 16`h of the control period prior to the allocation year
but have not operated for at 1 ast 77 days of the control period prior to the
allocation dear, the budget EGU's maximum design heat input for the
control period as designated in the construction permit
. Notwithstanding
the provisions of this subsection, a new budget EGU will receive
allocations based on its maximum design heat input for only one control
period; subsequent allocations will be based on its heat input for the prior
control period or periods
.
f)
g)
Beginning in 2005 2007, the Agency will review and allocate allowances pursuant
to each allocation request, contingent upon receiving payment pursuant to
subsection (k) of this Sect ion,by April 15
•
of the applicable y aras provided for in
35111. Adm. Code 273 .140, as follows
:
1)
Upon receipt of the allocation request, the Agency will determine whether
the request is consistent with the requirements of subsections (d) and (e) of
this Section and will make any necessary adjustments to the request to
ensure that the control period and the number of allowances requested are
consistent with those requirements of subsections (d) and (e) of this
Section
.
2)
If theNSSA
new source setaside for the control period for which
allowances are requested has a number of allowances greater than or equal
to the total number requested by all "new" budget EGUs, the Agency will
allocate the number of allowances requested
, as adjusted per subsection
(f)(1)
of
this Section, to the "new" budget EGUs .
3)
If theNSSA
new source set aside for the control period for which
allowances are requested has a number of allowances less than the total
number of allowances requested by all "new" budget EGUs, the Agency
will allocate the available allowances to the "new" budget EGUs on a pro-
rata basis, based on the number of allowances requested
, as adjusted per
subsection(f)(1) of this Section,
.
Notwithstanding subsection (f) of this section, fFor "new" budget EGUs that
commenced commercial operation on or after January 1, 1995, but prior to
January 1, 2004, the Agency will notify the account representative of the number
of allowances that have been allocated to the "new" budget EGU by April 7
Marsh 30 of the applicable year. There will be no charge for allowances received
under this subsection .
h) For "new" budget EGUs that commence commenced commercial operation on or
after January 1, 2004, the Agency will sell allowances from the NSSA as provided
for in 35 Ill. Adm. Code 273
. notify by March30of the applicable year the account
representativeof thenumberofallowancesthat
areeligible for purchasefor the
subsection(f)(2)of this Sect ion,up tothe numberofallowancesrequested by
purchase requ irementsofsubsection(k)
of
this Section, to the extent applicable
.
i)
For 2004 only, "new" budget EGUs that have commenced commercial operation
after July 16, 2003
2003, USEPA will deduct allowances to account for the actual utilization of the
EGU during the 2004 control period consistent with the provisions of 40 CFR
96.42(e). Any allowances allocated by the Agency for such "new" budget EGUs
that are not used for compliance during the 2004 control period shall be returned
to the Agency'sNSSA
new source -set aside account .
j)
For the years 2004, 2005, and 2006, any allowances that are not allocated pursuant
to subsections (g), (h) and (i) of this Section will be allocated on a pro-rata basis
according to heat input .
to the budget EGUs listed in Appendix F of this Part
.
There will be no charge for allowances received under this subsection
.
If there are
insufficient allowances to allocate a whole allowance to existing budget units
under Section 217.764, such allowances shall be retained by the Agency in the
NSSA until the next control period . Such allowances shall be available for
allocation to new units. If after any annual allocation to new units then the
Agency shall allocate these allowances to existing units pursuant to the provisions
this subsection for the 2006 control period and subsection (c)(3)of this Section
for the 2007 control period and thereafter.
k)
Fees forNSSA
new -source set aside allowances
:
1)
"New" budget EGUs that commence commercial operation on or after
January 1, 2004, that obtain allowances allocated from the NSSA
new
source setaside shall pay for such allocations pursuant to Section 9 .9 of
the Act .
2)
The price of allowances from the NSSA
new source set aside shall be
A) Tthe average price at which NO,, allowances are traded in the
"interstate NO, Trading Program for the preceding control period
pursuant to the procedures in 35 111. Adm. Code 273 ;-and
B) For 2001 only, the price shall be the averageprice at which NO,
allowances weretraded in 2003 in the Ozone Transport Region .
3)
The fees collected by the Agency from the sale of allowances will be
distributed pro-rata to budget EGUs receiving allowances pursuant to
Section 217.764 of this Part on the basis of allocated allowances subject
to Agency administrative costs assessed pursuant to Section 9 .9 of the Act
.
1)
A "new" budget EGU will become an existing budget EGU and will receive
allowances pursuant to the requirements of Section 217 .764 of this Part, as
follows :
1)
For a budget EGU that commences commercial operation between and
including January 1, 1995, and April 30, 2003, the budget EGU will be
allocated allowances in 2004 for the 2007 control period and will become
an existing budget EGU on May 1, 2007
.
2)
For a budget EGU that commences commercial operation after April 30,
2003, the budget EGU will become an existing budget EGU in the control
period for which it receives an allocation pursuant to Section 217 .764 of
this Part. It will he considered a "new" budget EGU and will receive its
allowances from theNSSA
new source sot aside in the intervening years
from start-up until it receives allocations pursuant to Section 217.764 of
this Part .
B94RPNOTE: Because of liti_ation involving the NO
1 497 2000
wr
1 30650(D.C.Cir. March 3, 2000), they
rs defining the con
of periods may
(Source: Amended at Ill. Reg . , effective )
Section 217.770
Early Reduction Credits for Budget EGUs
If a budget EGU reduces its NO, emission rate as required by the applicable provisions of
subsection (c) of this Section in the 2001, 2002, or 2003 control period, for use in the 2004
control period, or later control periods authorized by USEPA, the account representative may
request early reduction credits (ERCs) for such reductions, and the Agency will allocate ERCs to
the budget EGU in accordance with the following
:
a)
Each budget EGU for which the account representative requests any ERCs under
subsection (d) of this Section shall monitor NO, emissions in accordance with 40
CFR 96, subpart H, as incorporated by reference in Section 217 .104 of this Part,
starting with the control period prior to the control period for which ERCs will
first be requested and for each control period for which ERCs will be requested
.
For example, if ERCs are requested for reductions made in the 2001 control
period, the budget EGU must have implemented the applicable monitoring for the
2000 control period . The unit's monitoring system availability shall be not less
than 90% during the control period prior to the control period in which the NO,
emissions reduction is made and the unit must be in compliance with any
applicable State or federal emissions or emissions-related requirements
.
b)
The NO, emission rate and heat input under subsections (c) through (e) of this
Section shall be determined in accordance with 40 CFR 96, subpart H
.
c)
Each budget EGU for which ERCs are requested under subsection (d) of this
Section must have reduced its NO, emission rate for each control period for which
ERCs are requested, as follows
:
1)
For budget EGUs subject to the requirements of Title IV of the CAA and
not included in a NO. averaging plan pursuant to 40 CFR 72 and 76, as
incorporated by reference in Section 217 .104 of this Part, at least 30% less
than the NO, emission rate specified in the applicable Title IV permit or
other applicable federally enforceable permit .
2)
For budget EGUs subject to the requirements of Title IV of the CAA and
included in a NO. averaging plan pursuant to 40 CFR 72 and 76, at least
30% less than the annual emission rate required in the NO, averaging plan
in the applicable Title IV permit or other applicable federally enforceable
permit .
3)
For budget EGUs not subject to the requirements of Title IV of the CAA,
at least 30% less than the actual NO, emissions rate (lbs/mmbtu) for the
2000 control period .
d)
The account representative of a budget EGU that meets the requirements of
subsections (a) through (c) of this Section may submit to the Agency a request for
ERCs for a EGU based on NO, emission rate reductions made by the EGU in
control periods 2001, 2002, and 2003, in accordance with subsection (c) of this
Section .
1)
The number of ERCs for any applicable control period shall be an amount
equal to the unit's heat input for such control period multiplied by the
difference between the ECU's NO, emission rate (meeting the
requirements of subsection (c) of this Section for the applicable control
period) and the ECU's actual NO, emission rate for the applicable control
period; divided by 2000 lbs/ton, and rounded to the nearest ton
.
2)
Upon request of the account representative, the ERC allowance allocation
for a particular EGU may be deposited in the source's general
or overdraft
account rather than in the unit's compliance account
.
3)
The early reduction request must be submitted in a format specified by the
Agency by :
A)
November 1, 2001, for reductions made in the 2001 control period
;
B)
November 1, 2002, for reductions made in the 2002 control period ;
and
C)
November 1, 2003, for reductions made in the 2003 control period .
e)
(reserved)
SIP Call, May 34- ;
0
11,
Supplemont Pool undcr theNO
The Agency will allocate ERCs to the budget EGUs meeting the requirements of
subsections (a) through (c) of this Section and covered by ERC requests meeting
the requirements of subsection (d) of this Section in accordance with the
following procedures
:
1)
Upon receipt of each ERC request, the Agency will accept the request only
if the requirements of subsections (a) through (d) of this Section are met
and will make any necessary adjustment to the request to ensure that the
amount of the ERCs requested meets the requirements of subsections (b)
through (d) of this Section ;
2)
The Agency shall allocate at least 15,261 ERCs over three years, as
follows
:
A)
If USEPA has approved this Subpart as a SIP revision, not more
than one-half of the total ERC allowances for reductions made in
the control period in 2001 ;
B)
Not more than one-half of the total ERC allowances for reductions
made in the control period in 2002 ; and
C)
Any ERC allowances not allocated pursuant to subsection (f)
(2)(A) or (B) of this Section, for reductions made in the control
period in 2003 .
3)
If the number of ERC allowances requested for a reduction achieved in the
control period in 2003 is less than or equal to the number of ERC
allowances designated for that control period in subsection (f)(2)(A) of
this Section, the Agency will allocate to each budget EGU one allowance
for each accepted ERC request ;
4)
If the number of ERC allowances requested for a reduction achieved in the
control period in 2003 is greater than the number of ERC allowances
designated for that control period in subsection (f) (2)(A) of this Section,
the Agency will allocate to each budget EGU allowances for accepted
requests on a pro-rata basis .
g)
J)
The Agency will notify the account representative submitting an ERC request for
the subsequent control period of the number of ERC allowances that will be
allocated to each budget EGU for that control period as follows :
1)
By March 1, 2002, for ERCs requested for and earned in the 2001 control
period ;
2)
By March 1, 2003, for ERCs requested for and earned in the 2002 control
period; and
3)
By March 1, 2004, for ERCs requested for and earned in the 2003 control
period .
h)
By May 1, 2004, the Agency will submit to USEPA the ERC allocations made by
the Agency under this Section . USEPA will record such allocations to the extent
that they are consistent with the requirements of this Section
.
i)
ERC allowances recorded under subsection (h) of this Section may be deducted
for compliance under 40 CFR 96 .54, as incorporated by reference in Section
217.104 of this Part, for the control period in 2004 or such additional control
periods as may be specified by USEPA . Notwithstanding 40 CFR 96.55(a),
USEPA will deduct as retired any ERC allowances that are not deducted for
compliance in accordance with 40 CFR 96 .54 for the control period in 2004 , or
later control periods authorized by USEPA
.
ERC allowances are treated as banked allowances in 2004
and later control
periods authorized by USEPA for the purposes of 40 CFR 96 .55(a) and (b)
.
(Source: Amended at Ill. Reg . , effective )
Section 217.774
Opt-In Units
a)
Any operating fossil fuel-fired stationary boiler, combustion turbine, combined
cycle system, cement kiln or stationary internal combustion engine in the State
may qualify under this Subpart to become a budget opt-in unit if it
:
1)
Is not a budget EGU under Section 217 .754 of this Part ;
2)
Vents all of its emissions to a stack ;
3)
Has documented heat input for more than 876 hours in the six months
immediately preceding the submission of an application for an initial
budget permit under subsection (d) of this Section
;
Is not covered by a retired unit exemption under 40 CFR 96
.5 ;
5) Is not covered by the low emitter exemption under Section 217.751(c) of
this Part ; and
56)
Is not located at a source listed in Appendix D of this Part
.
b)
Except as otherwise provided in this Part, a budget opt-in unit shall be treated as a
budget EGU for purposes of applying this Subpart and 40 CFR 96
.
e)
Authorized account representative
:
1)
If an opt-in unit is located at the same source as one or more budget EGUs,
it shall have the same account representative as those budget EGUs .
2)
If the opt-in unit is not located at the same source as one or more budget
EGUs, the owner or operator of the opt-in unit shall submit a complete
account certificate of representation under 40 CFR 96 .13
.
d)
To apply for a budget permit, the account representative of a unit meeting the
qualifications of subsection (a) of this Section must, except as provided under
Section 217 .778(f) of this Part, submit to the Agency :
1)
A budget permit application for the unit that
:
A)
Meets the requirements under Section 217 .758 of this Part; and
B)
Contains provisions for a change in the regulatory status of the unit
to a budget opt-in unit under Section 217 .754 of this Part pursuant
to the provisions of Section 217 .780(b) of this Part .
2)
A monitoring plan for the unit in accordance with 40 CFR 96, subpart H .
(Source: Amended at
Ill. Reg .
, effective
)
217.Appendix D
Non-Electrical Generating Units
COMPANY ID # / NAME
1
UNIT DESIGNATION
2
UNIT DESCRIPTION
3
A. E. STALEY MANUFACTURING COMPANY
115015ABX
96020099299
COAL-FIRED BOILER 1
85070061299
115015ABX
96020099299
COAL-FIRED BOILER 2
85070061299
115015ABX
96020099129
BOILER #25
73020084129
-
wz=voorrz-~
ARCHER DANIELS MIDLANDCOMPANY (DECATUR COMPLEX) CO EAST PLANT
CORN PRODUCTS INTERNATIONAL, INC. (ARGO MANUFACTURING FACILITY)
Y
NAVAL TRAINING CENTER/GREAT LAKES NAVAL STATION
115015AAE
85060030081
COAL-FIRED BOILER 1
115015AAE
85060030081
COAL-FIRED BOILER 2
115015AAE
85060030081
COAL-FIRED BOILER 3
115015AAE
85060030082
COAL-FIRED BOILER 4
115015AAE
85060030082
COAL-FIRED BOILER 5
115015AAE
85060030082
COAL-FIRED BOILER 6
115015AAE
85060030083
GAS-FIRED BOILER 7
115015AAE
85060030083
GAS-FIRED BOILER 8
FLINT HILLS RESOURCES, LP (JOLIET FACILITY)
197800ABZ
960100250119
CB-706
031012ABI
96010009160
UTILITIES - BOILER #6(A23-
91020069160
144
031012ABI
96010009041
UTILIES - BOILER #1(A23-
73020146011
92)BLER SERIAL 15813
031012ABI
96010009042
UTILITIES - BOILER #2(A-
73020116012
23-92)BOILER SERIAL 15812
031012ABI
96010009043
UTILITES - BOILER #4(A-23-
73020116013
132)
4
031012ABI
96010009045
UTILIES - BOILER #3(A-23-
1
73020147045
)BOILER SERIAL 183,415
031012ABI
96010009046
UTILITIES - BOILER #5(A-
73020147046
23-93 GAS FIRED BOILER
N9 5
097811AAC
95120330011
BOILER 9 5
78080071011
097811AAC
95120330011
BOILER # 6
78080071011
I DTI
FINING LIMITED PARTNERS14
BOILER 18901
101805AAC
72110297015
101805AAC
72110297016
BOILER 18602
101805AAC
72110297017
BOILBR 18603
JEFFERSON SMURFIT CORPORATION
BLR 7-COAL FIRED
119010AAL
72120426001
CHICAGO COKE
96030032091
BOILER 4B
031600AMC
MARATHON ASHLAND PETROLEUM COMPANY, LLCOIL CO ILLINOIS RE
F(
BOILER #3 OIL, REF GAS
FIRED
BOILER #4 REF GAS, OIL
FIRED
DIVISIO`rN
033808AAB
033808AAB
96010007055
72111291055
96010007056
72111291056
EXXONMOBIL OIL CORPORATION (JOLIET FACILITY)~FINING CORP
197800AAA
197800AAA
95120304002
AUX BOILER-REFINERY
GAS FULL FIRE IF COGEN
DOWN
STATIONARY GAS
TURBINE
72110567002
95120304043
386010009013
AVENTINE RENEWABLE ENERGY, INC.PEKH ENERGY COMPANY
179060ACR
96030001019
BOILER C -PULVERIZED
7-3020087019
WET BOTTOM, WALL
FIRED
MORRIS COGENERATION LLCQUANTUM
USI DIVISION
063800AAJG
99110011001
BOILER # 1
BOILER # 2
#3 GAS FIRED BOILER
#5 GAS FIRED BOILER
#6 BOILER
063800AAJG
063800AAJE
063800AAJE
063800AAJG
72100016013
-ri-rvoo -rvv,->
99110011002
72 1 0001 601 3
-rz-rooorov~r~
99110011003
72100016014
99110011004
72100016016
99110011005
72100016017
TRIGEN-CINERGY SOLUTIONS OF TUSCOLA, LLCQUANTUM
USI DIVISION
041030ABGOI I801AAB
0101003801
BOILER NO 1
72121207108
041030ABG011804AAB
0101003806
BOILER NO 2
72121207109
041030ABG04I804AAB
010103807
BOILER NO 3
72121207110
041030ABG041804AAB
0101003808
BOILER NO 4
72121207111
011801AAB
72121207112
BOILER NO 5
vorc~n--rw~
CONOCOPHILLIPS CO. SHELL OIL CO(WOOD RIVER REFINERY)MFG COMPLEX
UNITED STATES" STEEL CORPORATION-(SOUTH WORKS)
A. E. STALEY MANUFACTURINGCOMPANY
ARCHER DANIELS MIDLAND COMPANY (DECATUR COMPLEX) EAST
ANT-
COMPANY
ID # / NAME
UNIT
DESIGNATION
UNIT
DESCRIPTION
BUDGET
ALLOCATI
ON
BUDGET
ALLOCATION
LESS 3% NSSA
1
2
3
4
5
115015ABX
96020099299
COAL-FIRED
BOILER 1
175176
170171
85070061299
115015ABX
96020099299
COAL-FIRED
BOILER 2
175
170
85070061299
115015ABX
96020099129
BOILER #25
125
121
73020084129
A. E. STALEY MANUFACTURING COMPANY
475176
461162
(Total Allocation) _
1
119090AAA
95120306080
BOILER NO 15
72110633080
119090AAA
95120306081
BOILER NO 16
7211063-3084-
119090AAA
95120306082
BOILER NO 17
72110633082
031600ALZ
96030055013
NO. 6 BOILER, #5 POWER
STATION (FUEL-NAT.GAS)
NO 1 BLR NG
82010011013
031600ALZ
96030055014
82010014014
UNIV OF ILL ABBOTT POWER PLANT
0190
o-r~010ADA
82090027006
CITGO PETROLEUM CORPORATION.UNO VEN COMPANY
BOILER #7
MBTU)
(265
197090AAI
96030079037
BOILER 430-B-1
72110253037
BUNGE MILLING, INC .
183020ABT
72121262091
CFB BOILER
(Source: Amended at
Ill. Reg .
, effective
)
Section 217.A
endix E
Lar e Non-Electrical Generatin Units
FLINT HILLS RESOURCES, LP (JOLIET FACILITY)
CORN PRODUCTS INTERNATIONAL INC. ARG
115015AAE
85060030081
COAL-FIRED
BOILER 1
237238
230234
115015AAE
85060030081
COAL-FIRED
BOILER 2
261
253
115015AAE
85060030081
COAL-FIRED
BOILER 3
267
259
115015AAE
85060030082
COAL-FIRED
BOILER 4
276
268
115015AAE
115015AAE
85060030082
COAL-FIRED
BOILER 5
275
267
85060030082
COAL-FIRED
BOILER 6
311
302
115015AAE
85060030083
GAS-FIRED
BOILER 7
19
18
115015AAE
85060030083
GAS-FIRED
BOILER 8
19
18
ARCHER DANIELS MIDLAND COMPANY
1 6651,666
14,616
(DECATUR COMPLEX) EAST
(Total
Allocation)
197800ABZ 960100250119
CB-706
6
6
FLINT HILLS RESOURCES, LP (JOLIET
6
6
FACILITY) (Total Allocation)
031012AB1
96010009160
GAS FIRED
BOILER 6
55
53
9102006960
031012ABI
96010009041
BOILER
1
COAL-FIRED
209210
203294
73020116011
031012ABI
96010009042
,
BOILER # 2
COAL-FIRED
210
203
73020116042
031012ABI
96010009043
GAS FIRED
BOILER NO 4
WEST STACK
BLRS
81
79
73020116043
031012ABI
96010009045
BOILER # 3
COAL-FIRED
211
205
73020117045
031012ABI
96010009046
GAS FIRED
BOILER NO 5-
EAST STACK
,BOILER
81
79
73020117016
CORN PRODUCTS INTERNATIONAL, INC .
(ARGO MANUFACTURING FACILITY) (Total
847848
822823
Allocation
J
NAVAL TRAINING CENTER/GREAT LAKES NTC
JEFFERSON SMURFIT CORPORATION
MARATHON ASHLAND PETROLEUM COMPANY, LLCOIL CO ILLINOIS REFINING
DIV
EXXONMOBIL OIL CORPORATION (JOLIET REFINERY)
AVENTINE RENEWABLE ENERGY, INCWILLIAMS
MORRIS COGENRATION, LLCEQUISTAR
063800AAJG 9911001100172 BOILER # 1
10001601] I-
3940
383-9
179060ACR
73020087019
BOILER C -
PULVERIZED
DRY BOTTOM
376377
365366
AVENTINE RENEWABLE ENERGY,
376
365366
INCWILLIAMS (Total Allocation)
197800AAA 95120304002721 AUX BOILER-
REFINERY GAS
101
98
10567002
197800AAA 95120304043860 STATIONARY
GAS TURBINE
85
82
10009043
EXXON MOBIL OIL CORPORATION (JOLIET
186
180
REFINERY)-(Total Allocation)
033808AAB
96010007055721 BOILER #3
OIL,REF GAS
FIRED
53
51
11291055
033808AAB
96010007056721 BOILER #4 REF
GAS,OIL FIRED
53
52
11291056
MARATHON OIL COMPANY, LLCGQ ILLINOIS
106
103
PEFII
N
Allocation)
(Total
097811AAC
95120330011
BOILER # 5
_
26
25
78080071011-
097811AAC
95120330011
BOILER # 6
26
25
78080071011
NAVAL TRAINING CENTER/GREAT LAKES
52
50
NTC (Total AllocationL
119010AAL
72120426001
BLR 7-COAL
FIRED
39
38
JEFFERSON SMURFIT CORPORATION (Total
Allocation)
39
38
TRIGEN-CINERGY S L T
T A
rTTpr,rrr
A
r
CONOCOPHILLIP
'rncr
UNITED STATES U-S STEEL - CORPORATI
031600ALZ
82010044013
I
NO. 6 BOILER,#5
POWER
STATION (FUEL-
NAT.GAS)
90
88
031600ALZ
82010044014
NO I BLR NG
90
87
UNITED STATES U-S STEEL CORPORATION-
180
175
(SOUTH WORKS) (Total Allocation)
119090AAA 95120306807211 BOILER NO 15
40
38
0633080
119090AAA 95120306817211 BOILER NO 16
40
39
0633081
119090AAA 95120306082721 BOILER NO 17
80
78
10633082
CONOCOPHILLIPS COMPANY (WOOD RIVER
160
155
REFINERY)TOSCO (Total Allocation)
041030ABG
96020121108721 BOILER NO 1
120121
117118
041804AAB
21207108
041030ABG
96020121109721 BOILER NO 2
121
118
941894
21207109
041030ABG 96020121110721 BOILER NO 3
121
117
941894AAB 21207110
041030ABG 96020121117212 BOILER NO 4
120
116
041894A4B
1207111
011801AAB 72121207112
CIO 5
0
0
TRIGEN-CINERGY SOLUTIONS OF TUSCOLA,
482483
468469
LLCEQUISTA?R
Allocation)
(Total
063800AAJG
99110011002-722 BOILER # 2
40
39
100016013
063800AAJE 9911001100372 43 GAS FIRED
BOILER
40
39
_100016011
063800AAJC 9911001100472 #5 GAS FIRED
40
39
100016016
BOILER
063800AAJG 9911001100572 #6 BOILER
40
39
100016017
MORRIS COGENERATION, LLC EQUISTAR
199200
193194
Cota1 Allocation)
019010ADA 82090027006
BOILER
86
Allocation)
86
83
83
CITGO PETROLEUM CORPORATION
**CHICAGO COKET
T`mV STEEL COMPANY
*Pursuant to Section 217.460(f), Column 2, Column 4 and Column 5 will be adjusted at such
time as USEPAmakes an allocation for LTV Steel'. BoilerNo. TB
**The first control period that Chicago Coke will receive a allocation for is 2007
.
*BUNGE MILLING, INC
.
183020ABT
72121262091
CFB BOILER
BUNGE MILLING, INC. Total Allocation)
*
Pursuant to Section 217.460(e), Column 4 and Column 5 will be adjusted when USEPA
makes an allocation for Bunge's CFB Boiler .
(GRAND TOTAL
48564 882
4711 4 736
(Source: Amended at Ill. Reg . , effective )
Section 217.Appendix F
Ameren Energy Generating Company (AERG)
135803AAA
I
Coffeen I
Allowances for Electrical Generating Units
Coffeen I
550
440
275
523
431
270
Company
Name/ ID #
Generating
Unit
Designatio
n
EGU
Designatio
n
NOx
Budget
Allowa
nces
80% of
NOx
Budget
Allowa
nces
50% of
NOx
Budget
Allowa
nces
2004,
2005,
2006
Allowa
nces
2007,
2008
Allowa
nces
2009,
2010
Allowa
nces
1
2
3
4
5
6
7
8
9
Company Totals
No
NSSA
No
NSSA
No
NSSA
5%
NSSA
2%
NSSA
2%
NSSA
197090AAI
72110253037
BOILER 43-B-1
23
22
CITGO PETROLEUM CORPORATION (Total
Allocation)
23
22
031600AMC 96030032091
BOILER NO 4B
60
58
CHICAGO COKELTV STEEL COMPANY (Total
60
58
Allocation)
AmerenEner
F~ V
Cit of S rin field
-
it
167120AAO
Dallman 1
Boiler 31
141
113
71
134
111
69
167120AAO
Dallman 2
Boiler 32
202
162
101
192
158
99
167120AAO
Dallman 3
Boiler 33
474
379
237
450
372
232
167120AGQ
G
.
Turbine
#2
G. Turbine
#2
91
73
46
86
71
45
167120AAO
Lakeside
7
Lakeside 7
47
38
24
45
37
23
167120AAO
Lakeside
Lakeside 8
42
34
21
40
33
21
8
City of Springfield - City Water Light
997
798
499
947
782
489
and Power CWLP Totals
057801AAA
D. Creek
D. Creek
914
731
457
868
717
448
143805AAG
Edwards 1
Edwards 1
251
201
126
239
197
123
143805AAG
Edwards 2
Edwards 2
368
294
184
350
288
180
143805AAG
Edwards 3
Edwards 3
655
524
328
622
513
321
AERGAES Totals
2,188
1,750
1,094
2,079
1,715
1,072
135803AAA
Coffeen 2
Coffeen 2
945
756
473
898
741
463
077806AAA
G. Tower 3
Boiler 7
55
44
28
52
43
27
077806AAA
G. Tower 3
Boiler 8
44
35
22
42
35
22
077806AAA
G. Tower 4
Boiler 9
199
159
100
189
156
98
033801AAA
Hutsonville
3
Boiler5
161
129
81
153
126
79
033801AAA
Hutsonville
4
Boiler 6
129
103
65
123
101
63
137805AAA
Meredosia I
Boiler 1
33
26
17
31
26
16
-1-35805AAA
137805AAA
Meredosia 1
Boiler 2
23
18
12
22
18
11
135805AAA
137805AAA
Meredosia 2
Boiler 3
23
18
12
21
18
11
135805A,6=
n
137805AAA
Meredosia 2
Boiler 4
28
22
14
27
22
14
-1-35805AAA
137805AAA
Meredosia 3
Boiler 5
432
346
216
410
339
212
135805AAA
137805AAA
Meredosia 4
Boiler 6
28
22
14
27
22
13
I3S8OS
n n
~~z
079808AAA
Newton 1
Newton 1
1,101
881
551
1,046
863
539
079808AAA
Newton 2
Newton 2
1,074
859
537
1,020
842
526
AERGAmcren Eng. Gen. Co. Totals
4,825
3,860
2,413
4,584
3,783
2,364
Midwest Generation LLC
063806AAF
Collins I
Collins 1
302
212
151
287
23-7
448
063806AAI-7
Collins 2
Collins 2
305
214
153
290
239
150
063806AAF
Collins 3
Collin5-3
469
375
235
446
368
230
063806AAF
Collins 4
Collins 4
290
232
115
275
227
112
0633806A
Collins 5
Collins 5
458
366
229
435
3-59
224
031600AIN
Crawford
7
Crawford 7
365
292
183
347
286
179
031600AIN
Crawford
8
Crawford 8
463
370
232
440
363
227
031600AM1
Fisk 19
Fisk 19
523
418
262
497
410
256
031600AMI
Fisk
Peaker
GT 31-1
9
7
5
9
7
4
031600AMI
Fisk
Peaker
GT 31-2
9
7
9
7
4
031600AMI
Fisk
Peaker
GT 32-1
9
7
5
9
7
4
031600AMI
Fisk
Peaker
GT 32-2
9
7
5
9
7
4
031600AMI
Fisk
Peaker
GT 33-1
9
7
5
8
7
5
031600AMI
Fisk
Peaker
GT 33-2
9
7
5
8
7
5
031600AMI
Fisk
Peaker
GT 34-1
9
7
5
8
7
5
031600AMI
Fisk
Peaker
GT 34-2
9
7
5
8
7
5
197809AAO
Joliet 6
Boiler 5
119
95
60
113
93
58
197809AAO
Joliet 7
Boiler 71
455
364
228
432
357
223
197809AAO
Joliet 7
Boiler 72
709
567
355
673
556-
347
197809AAO
Joliet 8
Boiler 81
748
598
374
711
587
367
197809AAO
Joliet 8
Boiler 82
497
398
249
472
390
244
179801 AAA
Powerton
5
Boiler 52
2563
2050
1
283
2435
2
1 256
739
591
370
702
3-79
362
179801AAA
Powerton
5
Boiler 51
739
591
370
702
579
362
179801 AAA
Powerton
6
Boiler 61
739
591
370
702
579
362
179801AAA
Powerton
6
Boiler 62
739
591
370
702
579
362
097190AAC
Waukegan
6
Boiler 17
199
159
100
189
156
98
Kincaid Generation, LLC
Electric€b Ener
Inc .
Dynegy Midwest Generation DMG
157851AAA
Baldwin I
Baldwin 1
1,114
891
557
1,058
873
546
157851AAA
Baldwin 2
Baldwin 2
931
745
466
884
730
456
157851AAA
Baldwin 3
Baldwin 3
1,318
1,054
659
1,252
1,034
646
125804AAB
Havana 1-
5
Boiler 1
0
0
0
0
0
0
125804AAB
Havana 1-
5
Boiler 2
0
0
0
0
0
0
125804AAB
Havana 1-
5
Boiler 3
0
0
0
0
0
0
127855AAC
Joppa I
Joppa 1
481
385
241
457
377
236
127855AAC
Joppa 2
Joppa 2
515
412
258
489
404
252
127855AAC
Joppa3
Joppa3
513
410
257
487
402
251
127855AAC
Joppa 4
Joppa 4
384
307
192
365
301
188
127855AAC
Joppa 5
Joppa 5
463
370
232
440
363
227
127855AAC
Joppa 6
Joppa 6
524
419
262
498
411
.
257
Electric€}: Energy Inc. Totals
2,880
2,304
1,440
2,736
2,258
1,411
097190AAC Waukegan
7
Waukegan
7
376
301
188
357
295
184
097190AAC
Waukegan
8
Waukegan
8
667
534
334
634
523
327
097190AAC
Peaker
GT 31-1
5
4
3
4
4
2
097190AAC
Peaker
GT 31-2
5
4
3
5
4
2
097190AAC
Peaker
GT 32-1
5
4
3
5
4
3
097190AAC
Peaker
GT 32-2
5
4
3
5
4
3
197810AAK
Will
County 1
Will
County I
364
291
182
346
285
178
197810AAK
Will
County 2
Will
County 2
354
283
177
336
278
173
197810AAK
Will
County 3
Will
County 3
449
359
225
427
352
220
197810AAK
Will
County 4
Will
County 4
766
613
383
728
601
375
Midwest Generation LLC Totals
11,926
9,541
5,963
11,330
9,350
5,844
021814AAB
Kincaid I
Kincaid 1
792
634
396
752
621
388
021814AAB
Kincaid 2
Kincaid 2
873
698
437
829
684
428
Kincaid Generation, LLCDom . Energy
1,665
1,332
833
1,581
1,305
816
Totals
Southern Illinois Power CooperativeSIPCO
Union Electric Corn any
199856AAC
Marion I
Marion 1
14
11
7
13
11
7
199856AAC
Marion 2
Marion 2
10
8
5
10
8
5
199856AAC
Marion 3
Marion 3
30
24
15
29
23
15
199856AAC
Marion 4
Marion 4
511
409
256
485
401
250
Southern Illinois Power
565
452
283
537
443
277
CooperativeS-WGO
Totals
125804AAB
Havana 1-
5
Boiler 4
0
0
0
0
0
125804AAB
Havana 1-
5
Boiler 5
0
0
0
0
0
0
125804AAB
Havana 1-
5
Boiler 6
0
0
0
0
0
0
125804AAB
Havana 1-
5
Boiler 7
0
0
0
0
0
0
125804AAB
Havana 1-
5
Boiler 8
0
0
0
0
0
0
125804AAB
Havana 6
Boiler 9
547
438
274
520
429
268
155010AAA
Hennepin
1
Hennepin 1
149
119
75
142
117
73
155010AAA
Hennepin
2
Hennepin 2
540
432
270
513
423
265
183814AAA
Vermilion
1
Vermilion
1
17
14
9
16
13
8
183814AAA
Vermilion
2
Vermilion
2
31
25
16
30
24
15
119020AAE
Wood
River 1
Wood
River 1
0
0
0
0
0
0
119020AAE
Wood
River 2
Wood
River 2
0
0
0
0
0
0
119020AAE
Wood
River 3
Wood
River 3
0
0
0
0
0
0
119020AAE
Wood
River 4
Wood
River 4
219
175
110
208
172
107
119020AAE
Wood
River 5
Wood
River 5
714
571
357
678
560
350
DMG Totals
5,580
4,464
2,790
5,301
4,375
2,734
119105AAA
Turbine
Turbine
4
3
2
4
3
2
I19105AAA
Venice I
Venice 1
10
8
5
9
8
5
119105AAA
Venice 2
Venice 2
13
10
7
12
10
6
TOTAL
30,701
24,561
1
15,351
29,166
24,070
15,044
(Source: Amended at Ill. Reg . , effective )
119105AAA
Venice 3
Venice 3
6
5
3
6
5
3
119105AAA
Venice 4
Venice 4
7
6
4
7
5
4
119105AAA
Venice 5
Venice 5
15
12
8
14
12
7
119105AAA
Venice 6
Venice 6
16
13
8
15
13
8
119105AAA
Venice 7
Venice 7
2
2
1
2
1
1
119105AAA
Venice 8
Venice 8
2
2
1
2
2
1
Union Electric Company Totals
75
60
38
71
59
37
f.\wp\Dox\nox2l7\part2l 7. final
January 13, 2006
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF :
)
NOx TRADING PROGRAM :
)
R06-
AMENDMENTS TO 35 ILL
.
)
(Rulemaking - Air)
ADM. CODE PART 217
)
PROOF OF SERVICE
I, the undersigned, on oath state that I have served the attached REGULATORY
PROPOSAL FOR NOx TRADING PROGRAM: AMENDMENTS TO 35 ILL. ADM .
CODE PART 217, APPEARANCE and MOTION FOR WAIVER OF
REQUIREMENTS of the Illinois Environmental Protection Agency upon the person to
whom it is directed, by placing it in an envelope addressed to
:
TO :
Dorothy Gunn, Clerk
Illinois Pollution Control Board
State of Illinois Center
100 West Randolph, Suite 11-500
Chicago, Illinois 60601
SEE ATTACHED SERVICE LIST
and mailing it by First Class Mail from
sufficient postage affixed .
SUBSCRIBED AND SWORN TO BEFORE ME
this 17 `h day of January, 2006
Matthew Dunn, Chief
Attorney General's Office
James R. Thompson Center
100 West Randolph, 12th Floor
Chicago, Illinois 60601
ngfield, Illinois on January 17, 2006 with
p
{
OFFICIALSEAL
o
CYNTHIA L. WOLFE
`'
i NOTARY PUBLIC, STATEO' ILLINOIS
'.
X MY COMMISSION EXPIRES 3.20.2007°
•.
Dave Tomlinson
AES Duck Creek
17751 N. CILCO Road
Canton, Illinois 61520
Pat Dennis
Archer Daniels Midland - Decatur Complex
4666 Faries Parkway
P. O. Box 1470
Decatur, Illinois 62526
Bill Constantelos
Midwest Generation EME, LLC
One Financial Place
440 S LaSalle Street, Suite 3500
Chicago, Illinois 60605
Steve Witworth
Ameren Energy Generating Company
1901 Chouteau Avenue
P. 0. Box 66149
St. Louis, Missouri 63166-6149
Bill Murphy
CWLP
Office of Public Utilities
800 E. Monroe
Springfield, Illinois 62757
Bob Asplund
Dominion
5000 Domonion Blvd
Glen Allen, VA 23060
Scott Miller
Midwest Generation
440 S LaSalle Street, Suite 3500
Chicago, Illinois 60605
Cindy Faur
Sonnenschein Nath & Rosenthal
.
8000 Sears Tower
233 South Wacker
Chicago, Illinois 60606
SERVICE LIST R-06
Rick Diericx
Environmental Compliance
Dynegy Inc .
2828 North Monroe Street
Decatur, Illinois 62526-3269
Bruce Parker
Electric Energy Inc .
P. O. Box 165
Joppa, Illinois 62953
Leonard Hopkins
Southern Illinois Power Coop
11543 Lake of Egypt Road
Marion, Illinois 62959
Arm Singh
Dominion
4 Miles West of Kincaid on Rte. 104
Kincaid, Illinois 62540
Jim Monk
Illinois Energy Association
1 W Old Ste Capitol Plaza, Room 509
Springfield, Illinois 62701
Mark Schultz
Naval Training Center
201 Decatur Avenue
Great Lakes, Illinois 60088-5600
Neal Sahni
ConcoPhillips Co
900 S Central Avenue
Roxana, Illinois 62084
Steve Antonacci
Aventine Renewable Energy, Inc
.
1300 S Second Street
Pekin, Illinois 61554
Claude Harmon
CITGO Petroleum Corp
135`h St and New Ave
Lemont, Illinois 60439
John Zaborske
US Steel - South Works
3426 E8 9`h Street
Chicago, Illinois 60617
Alan Mayo
David Saad
Marathon Ashland Petroleum LLC
100 Marathon Avenue
Robinson, Illinois 62454
Shane Bradford
Trigen - Cinergy Solutions of Tuscola LLC
625 E US hwy 36
Tuscola, Illinois 61953
Steve Szobar
Calpine (Morris) LLC
8805 N Tabler Road
Morris, Illinois 60450
Jennifer Marshall
A E Staley Manufacturing Co
2200 E Eldorado Street
Decatur, Illinois 62521-1578
Bert Mary
Jefferson Smurfit Corp
10 Cut Street
Alton, Illinois 62002
Bob Elvert
Brad Kohlmeyer
Exxon Mobile Oil Corp .
1-55 & Arsenal Road
P.O. Box 874
Joliet, Illinois 60434
CON'T SERVICE LIST R-06
Cindy Johnson
Flint Hills Resources
23425 Amoco Road
Channahon, Illinois 60410
Kathy Andria
ABC
P. 0. Box 23484
Belleville, Illinois 62223
Kathleen Bassi
Schiff Hardin (Midwest Generation)
6600 Sears Towers
233 S Wacker Drive
Chicago, Illinois 60606
Alexis Cain
U. S. Environmental Protection Agency
77 West Jackson Blvd, AT 18 .1
Chicago, Illinois 60604
Lisa Frede
Chemical Industry Council of Illinois
2250 E. Devon Avenue, Suite 239
Des Plaines, Illinois 60018
Jason Goodwin
Midwest Power Region Calpine Corporation
4100 Underwood Road
Pasadena, Texas 77507
Jim Harrington
McGuire Woods
150 Wacker
Chicago, Illinois 60601
DK Hirner
Illinois Environmental Regulatory Group
3150 Roland Avenue
Springfield, Illinois 62703
Faith Bugel
ELPC
35 E Wacker Drive
Chicago, Illinois 60601
Gail Newton
Hodge Dwyer Zeman
3150 Roland Avenue
Springfield, Illinois 62703
Heidi Hanson
4721 Franklin, Suite 1500
Western Springs, Illinois 60558
Henry Henderson
Policy Solutions
20 N Wacker, Suite 1938
Chicago, Illinois 60606
Kathy Hodge
Hodge Dwyer Zeman
3150 Roland Avenue
Springfield, Illinois 62703
Bruce Niles
Sierra Club
214 N Henry Street
Madison, WI 53707
SERVICE LIST R-06
Brian Urbaszewski
American Lung Assoc. Of Metropolitan
Chicago
1440 W Washington Blvd
Chicago, Illinois 60607
Bob Wells
Abbott Labs
1401 Sheridan Rd, Dept 05G3, Bldg,
NCP14
North Chicago, Illinois 60064-6239
Verena Owen
Illinois Sierra Club/Lake County
Conservation Alliance
421 Ravine
Winthrop Harbor, Illinois 60096
Becky Stanfield
Illinois PIRG
407 South Dearborn, Suite 701
Chicago, Illinois 60605
