1. FOR STATIONARY SOURCES
        1. GO Gross electrical output
        2. HI heat input
          1. Section 225.130 Definitions
      2. “CAIR Trading Programs” means the requirements of this Part, and those provisions of the federal CAIR NOx Annual Season, CAIR SO2, or CAIR NOx Ozone Season Trading Programs set forth in 40 CFR 96, as incorporated by reference in Section 225.140 of this Subpart.
      3. “Coal-fired” means:
      4. a) For purposes of Subparts B, D, and E, combusting any amount of coal or coal-derived fuel, alone or in combination with any amount of any other fuel, during a specified year;
      5. b) For purposes of Subpart C, combusting any amount of coal or coal-derived fuel, alone, or in combination with any amount of any other fuel.
      6. "Cogeneration unit" means, for the purposes of Subparts C, D, and E, a stationary, fossil fuel-fired boiler or stationary, fossil fuel-fired combustion turbine:
        1. “Combined cycle system” means a system comprised of one or more combustion turbines, heat recovery steam generators, and steam turbines configured to improve overall efficiency of electricity generation or steam production.
        2. “Combustion turbine” means:
        3. “Common stack” means a single flue through which emissions from two or more units are exhausted.
        4. “Control period” means:
      7. Section 225.425 Annual Trading Budget
        1. Section 225.450 Monitoring, Recordkeeping and Reporting Requirements for Gross Electrical Output and Useful Thermal Energy
      8. Section 225.525 Ozone Season Trading Budget
        1. Section 225.550 Monitoring, Recordkeeping and Reporting Requirements for Gross Electrical Output and Useful Thermal Energy
      9. Illinois Pollution Control Board
      10. CERTIFICATE OF SERVICE
        1. Dorothy Gunn
        2. Clerk
          1. Illinois Pollution Control Board
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
)
)
PROPOSED NEW CAIR SO
2
, CAIR NO
X
)
ANNUAL AND CAIR NO
X
OZONE SEASON
)
R06-26
TRADING PROGRAMS, 35 ILL. ADM.
)
(Rulemaking- Air)
CODE 225, CONTROL OF EMISSIONS
)
FROM LARGE COMBUSTION SOURCES,
)
SUBPARTS A, C, D and E
)
NOTICE
TO: Dorothy Gunn, Clerk
Illinois Pollution Control Board
James R. Thompson Center
100 West Randolph, Suite 11-500
Chicago, Illinois 60601-3218
SEE ATTACHED SERVICE LIST
PLEASE TAKE NOTICE that I have today filed with the Office of the Pollution Control
Board a MOTION TO AMEND RULEMAKING PROPOSAL, a copy of which is herewith
served upon you.
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
By: ______________________
John J. Kim
Managing Attorney
Air Regulatory Unit
Division of Legal Counsel
DATED: November 27, 2006
1021 North Grand Avenue East
P.O. Box 19276
Springfield, Illinois 62794-9276
THIS FILING IS SUBMITTED
217.782.5544
ON RECYCLED PAPER
217.782.9143 (TDD)
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
)
)
)
R2006 - 026
PROPOSED Clean Air Interstate Rule (CAIR)
)
(Rulemaking – Air)
SO
2
, NO
x
Annual and NO
x
Ozone Season
)
Trading Programs, 35 Ill. Adm. Code 225.
)
Subparts A, C, D and E
)
)
MOTION TO AMEND RULEMAKING PROPOSAL
NOW COMES the Proponent, the ILLINOIS ENVIRONMENTAL PROTECTION
AGENCY (Illinois EPA), by its attorneys, and pursuant to 35 Ill. Adm. Code 101.500 and
102.402, moves that the Illinois Pollution Control Board (Board) amend proposed new Part 225.
In support of its Motion, the Illinois EPA states as follows:
On May 30, 2006, the Illinois EPA filed a proposal with the Board to add new Subparts
to Part 225, 35 Ill. Adm. Code Part 225, entitled "Control of Emissions from Large Combustion
Sources." New subparts A, C, D and E, add SO
2
, NO
x
Annual and NO
x
Ozone Season Trading
Programs in Part 225. The Illinois EPA's proposal is intended to meet certain obligations of the
State of Illinois under the federal Clean Air Act (CAA), 42 U.S.C. § 7401
et seq
.; specifically, to
satisfy Illinois' obligation to submit a State Implementation Plan to address the requirements of
the Clean Air Interstate Rule (CAIR),
see
, 70
Fed. Reg.
25161 (May 12, 2005). Under CAIR,
states are required to submit State plans to the United States Environmental Protection Agency
(USEPA) by no later than September 11, 2006.
Id
.
at 25319; 40 CFR § 51.123(d)(1)
.
The Illinois EPA engaged in extensive outreach on this proposal. In January 2006, the
Illinois EPA commenced regular meetings with representatives of the affected sources and public
interest groups and the Illinois EPA distributed working drafts of the proposed rule to such
parties.
1
After the filing of the rulemaking proposal, a number of changes and clarifications were
found to be necessary as a result of communications with USEPA, issues that arose during the
first hearing in this rulemaking held in Springfield, formatting and stylistic changes to conform
with the changes made in the Board’s Second Notice issued in the proposed mercury rulemaking
(R06-025), and correction of typos. Therefore, the Illinois EPA is now proposing to amend the
rulemaking proposal as set forth in this motion.
1)
The following changes have been made to conform with changes to the Second Notice in
R06-25:
A)
The term “shall” has been replaced by the terms “will,” “must,” or “may” as
applicable and the term “such” has either been deleted or replaced by a more
specific term, e.g., the, these. (R06-25.)
B)
The lead in paragraph for Section 225.130 now conforms with R06-25.
C)
All “§” symbols have been deleted.
D)
References to “of this Subpart” and “of this Part” have been deleted.
E)
References to “with regard to” have been replaced by the phrase “for the purpose
of.”
F)
The definition for “cogeneration unit” has been restricted to the Subparts
implementing the CAIR trading programs, as it is not clear that USEPA would
approve the definition as the Board has proposed it in its Second Notice for R06-
25.
G)
The term “under” has been replaced with the term “pursuant to.”
2)
The following changes have been made at the recommendation of USEPA:
A)
The definitions for “CAIR authorized account representative” and “CAIR
designated representative” have been clarified to include all three trading
programs and to reflect amendments made to the definition as a result of the April
28, 2006,
Federal Register
.
B)
The definition for “CAIR NO
x
compliance account” has been amended to reflect
the federal term “compliance account” and to reflect both the annual NO
x
and
NO
x
ozone season trading programs.
2
C)
The definition for “coal-fired” has been amended to reflect the difference between
the definition for the NO
x
and the SO
2
trading programs.
D)
The definition for “combustion turbine” has been amended to include “duct
burners” which reflects the change made to the definition pursuant to the April 28,
2006,
Federal Register
.
E)
The term “affected unit” has been replaced throughout Illinois EPA’s proposal
with the specific program that applies to the particular unit, as the term “affected
unit” is used in the federal Acid Rain program; hence, use of the term to refer to
CAIR units that are not also Acid Rain units.
F)
The definition for “commence commercial operation” has been updated to reflect
amendments that USEPA made to the definition on April 28, 2006. The most
significant amendment is the deletion of subsection (c) of the definition.
G)
The definition for “commence operation” reflects changes made by USEPA to the
definition on April 28, 2006. The most significant amendment is the deletion of
subsection (b) of the definition.
H)
The definition for “nameplate capacity” reflects changes made by USEPA to the
definition on April 28, 2006. The changes were only minor and included the
addition of the phrase “as of such installation” and “as of such completion.”
I)
The definition for “repowered” reflects a request by USEPA that the term “unit”
be used instead of the term “electric generating unit.”
J)
The definition for “useful thermal energy” reflects a request by USEPA that the
term “heating” be used instead of “heat.”
K)
Section 225.140 (Incorporations by Reference) has been amended to reflect that
last date that subsections (a) through (f) had been updated by USEPA.
L)
Sections 225.300, 225.400, and 225.500 reflect a request by USEPA that Illinois’
CAIR rule use the applicability language verbatim from the April 28, 2006,
Federal Register
. The most significant change is the deletion of the exemption
for industrial boilers listed in 35 Ill. Adm. Code 217.Appendix D. USEPA’s
position is that the status of any one of these boilers could change over time from
one that is industrial in nature to one that is selling power to the grid.
M)
Sections 225.310(d), 225.410(d), and 225.510(d) reflect a request by USEPA that
several changes be made to the subsection to conform to the federal requirements.
Specifically, in subsection (d)(1) the term “owner or operator” should be used
instead of the term “CAIR designated representative.” In addition, a more
detailed description of the allowance transfer deadline has been added pursuant to
amendments made by USEPA on April 28, 2006. In subsection (d)(3), there is the
3
addition of the phrase “and for each control period thereafter.” In subsection
(d)(4), the phrase “into or” is added. In subsection (d)(5), there is a substitution of
the phrase “deducted” and “compliance according to subsection (d)(1) of this
Section, for” instead of “utilized,” and the terms “calendar” and “before” have
been added. Finally, in subsection (d)(8), the term “compliance account” has
been added.
N)
In Section 225.310(d)(1), USEPA requested that, with respect to the CAIR SO
2
trading program, a clarification be made as to the value of an allowance. For the
CAIR SO
2
trading program an allowance has a different value depending on the
year it is allocated (vintage) and it retains that value no matter when it is used for
compliance or traded; hence, the use of the term “tonnage” in lieu of use of the
term “ton.”
O)
Sections 225.310(e)(1)(D) & (f)(4), 225.410(e)(1)(D) & (f)(4), and
225.510(e)(1)(D) & (f)(4) reflect a request by USEPA that several changes be
made to these subsections to conform to the federal requirements. Specifically,
the requirement that the owner or operator submit any documents used to
demonstrate compliance has been added and the last sentence has been deleted,
respectively.
P)
Sections 225.320(a)(1) & (2) & (c), 225.410(a)(1) & (2) & (c), and 225.510(a)(1)
& (2) & (c) reflect a request by USEPA that several changes be made to these
subsections to conform to the federal requirements. Specifically, in subsection
(a)(1), a requirement has been added that owners or operators submit any
supplemental information requested by the Illinois EPA. In subsection (a)(2), a
reference to the Illinois EPA’s authority to issue permits has been added. A new
subsection (c) has been added to reflect that the applicable definitions will be
incorporated by reference into the permit and all allocations, transfers or
deductions of allowances automatically amend the applicable permit upon
recordation by USEPA in the source’s compliance account.
Q)
Section 225.325 has been revamped to reflect that with respect to the CAIR SO
2
trading program a clarification has been made as to the value of an allowance.
For the CAIR SO
2
trading program an allowance has a different value depending
on the year it is allocated (vintage) and it retains that value no matter when it is
used for compliance or traded; hence, the use of the term “tonnage” in lieu of use
of the term “ton.” It also reflects that while the Illinois EPA does not have the
authority to issue SO
2
allowances, other states that have adopted the opt-in
provisions may.
R)
Section 225.430 (Timing for Annual Allocations) has been amended to reflect the
timing required by the federal CAIR rule for NO
x
allowance allocations.
Subsection (a) now provides that the Illinois EPA will make the initial allocations
for control periods 2009, 2010, and 2011 no later than July 31, 2007. This will
enable affected sources to submit their preference for calculating converted gross
4
output and allow the Illinois EPA sufficient time to make the necessary
calculations after the proposal is adopted. Subsection (b) now provides that the
Illinois EPA will submit allocations four years in advance of the applicable
deadline, so the allocations for the 2012 control period will be made in 2008 and
not in 2009. Subsection (c) of Section 225.430 now provides that allowances
from the New Unit Set-Aside (NUSA) will be reported to USEPA by October 31
of the applicable control period; hence, new units will not receive allowances for
compliance for the first year of commercial operation. These changes are
required by 40 CFR 51.123(p).
S)
Section 225.530 (Timing for Ozone Season Allocations) has been amended to
reflect the timing required by the federal CAIR rule for NO
x
allowance
allocations. Subsection (a) now provides that the Illinois EPA will make the
initial allocations for control periods 2009, 2010, and 2011 no later than July 31,
2007. This will enable affected sources to submit their preference for calculating
converted gross output and allow the Illinois EPA sufficient time to make the
necessary calculations after the proposal is adopted. Subsection (b) now provides
that the Illinois EPA will submit allocations four years in advance of the
applicable deadline, so the allocations for the 2012 control period will be made in
2008 and not in 2009. Subsection (c) of Section 225.530 now provides that
allowances from the NUSA will be reported to USEPA by July 31 of the
applicable control period; new units will not receive allowances for compliance
for the first year of commercial operation. These changes are required by 40 CFR
51.123(aa).
T)
Sections 225.435 and 225.535 (Methodology for Calculating Allocations) have
been amended to reflect the change in dates that allocations must be made. As
allocations are required to be made four years in advance of the applicable control
period, gross electrical output data for the 2012 and 2013 control period must be
from 2006, 2007 and 2008. Such data may not be available, hence, a new
subsection (b) was added to allow owners and operators a choice of using heat
input for those control periods.
U)
Sections 225.440 and 225.540 Allocations have been clarified in subsection (b) to
limit allocation of allowances to whole allowances on a pro-rata basis.
V)
Sections 225.445 and 225.545 (New Unit Set-Aside (NUSA) have been amended
to reflect the submittal date requirements of 40 CFR 51.123. Subsection (b) has
been amended to require that applications be submitted not later than March 1
after the first control period that the unit has operated. This change means that
new units will not receive an allocation for the control period in which they
commence operation, but instead will receive an allocation beginning with the
second control period of operation. Subsection (f) has been amended to state that
the Illinois EPA will notify CAIR designated representatives of NUSA allocations
by June 1 of the applicable control period. Subsection (g) for the annual program
reflects that allocations from the Annual NUSA will be submitted to USEPA no
5
later than October 31 of the applicable control period. For the Ozone Season
NUSA, the allocations will be submitted to USEPA no later than July 31 of the
applicable control period.
W)
Sections 225.455 and 225.555 (Clean Air Set-Aside) (CASA) are amended to
reflect a comment that new subsection (d) contained conflicting language. Either
a project sponsor aggregates enough projects that would make it eligible for one
allowance or the request can be rounded up. The proposal requires that the
aggregation equal at least one whole allowance.
3)
The following amendments are being proposed as a result of comments made at the
October 10, 2006 hearing:
A)
A definition for “commence construction” has been added. A suggestion had
been made that the term “commence commercial operation” be used; however,
that term applies only to units that sell electricity to the grid. Although many of
the projects may ultimately result in sales of electricity, it would exclude projects
that include demand-side energy projects, e.g., Energy Star buildings.
B)
A definition for “project sponsor” has been amended to lessen the possibility that
two or more organizations or people could submit applications for the same
project. The revised definition designates the individual or organization that
provides the majority of the funding for the project unless another person or entity
is designated in writing as the project sponsor.
C)
In Sections 225.430 and 225.530 (Timing for Allocations), subsection (d) has
been amended to clarify that the Illinois EPA will be allocating allowances from
the CASA in 2009 for 2009, based on reductions allocations made in 2008. These
allocations will be made by October 1 of each year, so the allowances allocated
from the CAIR NO
x
Ozone Season CASA may be used for compliance in the year
they are allocated.
D)
Sections 225.435 and 225.535 (Methodology for Calculating Allocations) have
been amended to reflect that the Illinois EPA clarify that affected units have a
choice for control periods 2009 through 2013 whether gross electrical output or
heat input is used to calculate converted gross output. Subsection (a) requires that
the owner or operator submit a statement making the election by June 1, 2007, for
control periods 2009 through 2011. New subsection (b) requires that the election
be made in writing by June 1, 2008, for control periods 2012 and 2013.
E)
Sections 225.450 and 225.550 (Monitoring, Recordkeeping and Reporting
Requirements for Gross Electrical Output and Useful Thermal Energy) have been
amended to reflect the date changes required by USEPA for the Illinois EPA to
submit allocations and requests by the public at hearing to allow other
measurement systems for gross electrical output. Subsection (a) has been
amended to require a system for measuring gross electrical output no later than
6
January 1, 2008. This system may be a wattmeter or other system that meets
either the requirements of 40 CFR 60 or 75, as applicable. Subsection (b) has also
been amended to delay the installation of a system for measuring gross electrical
output until 2008. Subsection (c) has been amended to require that gross
electrical output for the initial allocations, control periods 2009-2011, be
submitted to the Illinois EPA no later than June 1, 2007, and for the 2012 control
period, that it be submitted no later than June 1, 2008. Subsection (d) has also
been delayed one year. Designated representatives will be required to submit
quarterly data at the end of the first quarter of 2008. Subsection (e) has been
amended to reflect the new requirements for measuring gross electrical output and
maintaining a monitoring plan.
F)
Sections 225.455 and 225.555 (Clean Air Set-Aside (CASA)) is amended to
reflect a comment that the Illinois EPA does not make findings of noncompliance
and to reflect the new definition for “project sponsor.” Subsection (b) has been
amended to reflect that allowances received by a unit that is found to be out of
compliance must be restored to the Illinois EPA. Subsection (c) has been deleted.
It had required the Illinois EPA to reject a project if more than one project
sponsor applied for allowances from the CASA.
G)
Sections 225.460 and 225.560 (Energy Efficiency and Conservation, Renewable
Energy, and Clean Technology Projects) have been amended to reflect several
clarifications to the rule. Subsection (a)(1) has been has been amended to reflect
that lighting retrofits are demand side management projects. Subsection (a)(4)(A)
has been amended to reflect that combined heat and power projects that are also
CAIR NO
x
units or CAIR NO
x
Ozone Season units are not eligible to receive
allowances from the CASA. Subsection (d) has been amended to clarify which
projects are not eligible to receive allowances from the CASA. Subsection (e) has
been amended to clarify that projects that are specifically excluded by definition
in subsections (a) through (c) may not apply as another type project.
H)
Sections 225.465 and 225.565 (CASA Allowances) have also been clarified to
reflect the changes made in Sections 225.460 and 225.560. Subsection (b)(1) has
been amended to reflect that combined heat and power projects are eligible at a
different rate for CASA allowances than other projects listed as supply-side
projects. Subsection (b)(4) reflects the clarifications made concerning projects
taken pursuant to consent decrees and court orders. This issue was also addressed
in the Illinois EPA’s Post Hearing Comments. Subsection (b)(5) reflects that the
entire clean technology category uses this formula to calculate the number of
allowances that the project may be eligible to receive.
I)
Sections 225.470 and 225.570 (CASA Applications) have been amended to reflect
the new definition for “project sponsor.” Subsection (c)(1) has been amended to
require that the project sponsor submit as part of its application a certification that
it has met the definition of “project sponsor.”
7
J)
Sections 225.475 and 225.575 (Agency Action on CASA Applications) have been
amended to reflect new dates and the tipping scheme for excess allowances.
Subsection (a) has been amended to require that the Illinois EPA notify project
sponsors by September 1 of the applicable control period of the number of
allowances that are approvable for a project. The later date would have precluded
the Illinois EPA from allocating, and USEPA from recording, allowances from
the Ozone Season CASA in time for a source that is also a project sponsor to use
the allowance for compliance during the applicable control period. Subsection (b)
reflects the new tipping scheme that was testified to at the First Hearing.
WHEREFORE, for the reasons set forth above, the Illinois EPA moves that the Board
amend proposed new Part 225 as set forth herein.
Respectfully submitted,
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
By:
__________________
Rachel L. Doctors
Assistant Counsel
Division of Legal Counsel
DATED: November 27, 2006
1021 N. Grand Ave., East
P.O. Box 19276
Springfield, Illinois 62794-9276
217/782-5544
8
STATE OF ILLINOIS
)
) SS
SANGAMON COUNTY
)
AFFIDAVIT
I, Jim Ross, upon my oath, do hereby state as follows:
1.
I am employed as the Manager of the Division of Air Pollution Control in the Bureau of Air
for the Illinois Environmental Protection Agency ("Illinois EPA").
2.
In my current position as Division Manager, I supervise a staff of over 150 engineers,
specialists, and administrative support personnel in developing, monitoring, and enforcing
the State and Federal air pollution control requirements. In particular, and more recently, I
have been overseeing Illinois EPA’s efforts in the development of several rulemaking
efforts, including the proposed rule to implement the Federal Clean Air Interstate Rule.
3.
I have reviewed the Motion to Amend Rulemaking Proposal (“Motion”) submitted in the
rulemaking docketed as PCB R06-26.
4.
To the best of my knowledge, the factual information and representations contained within the
Motion are true and accurate.
FURTHER AFFIANT SAYETH NOT.
____________________________________
Jim Ross
Subscribed and sworn to before me
this _______day of ________, 2006.
_____________________________
Notary Public
STATE OF ILLINOIS
)
) SS
SANGAMON COUNTY
)
AFFIDAVIT
I, Rob Kaleel, upon my oath, do hereby state as follows:
1.
I am employed as the Manager of the Air Quality Planning Section of the Division of Air
Pollution Control in the Bureau of Air for the Illinois Environmental Protection Agency
("Illinois EPA").
2.
In my current position as Section Manager, my responsibilities include oversight of staff
that provides technical support for regulatory initiatives needed to address air quality
issues in Illinois, including the regulatory proposal to implement the Federal Clean Air
Interstate Rule. I have also been closely involved with the development of Illinois’ State
Implementation Plans to address the PM2.5 and ozone nonattainment areas in Illinois.
3.
I have reviewed the Motion to Amend Rulemaking Proposal (“Motion”) submitted in the
rulemaking docketed as PCB R06-26.
4.
To the best of my knowledge, the factual information and representations contained within the
Motion are true and accurate.
FURTHER AFFIANT SAYETH NOT.
____________________________________
Rob Kaleel
Subscribed and sworn to before me
this _______day of ________, 2006.
_____________________________
Notary Public
 
1
1
2
3
TITLE 35: ENVIRONMENTAL PROTECTION
4
SUBTITLE B: AIR POLLUTION
5
CHAPTER I: POLLUTION CONTROL BOARD
6
SUBCHAPTER c: EMISSION STANDARDS AND LIMITATIONS
7
FOR STATIONARY SOURCES
8
9
PART 225
10
CONTROL OF EMISSIONS FROM LARGE COMBUSTION SOURCES
11
12
SUBPART A: GENERAL PROVISIONS
13
14
Section
15
225.100
Severability
225.120
16
Abbreviations and Acronyms
17
225.130
Definitions
225.140
18
Incorporations by Reference
19
20
SUBPART C: CAIR SO
2
TRADING PROGRAM
21
22
Section
23
225.300
Purpose
24
225.305
Applicability
25
225.310
Compliance Requirements
26
225.315
Appeal Procedures
27
225.320
Permit Requirements
28
225.325
Trading Program
29
30
SUBPART D: CAIR NO
x
ANNUAL TRADING PROGRAM
31
32
Section
33
225.400
Purpose
34
225.405
Applicability
35
225.410
Compliance Requirements
36
225.415
Appeal Procedures
37
225.420
Permit Requirements
225.425
38
Annual Trading Budget
225.430
39
Timing for Annual Allocations
225.435
40
Methodology for Calculating Annual Allocations
225.440
41
Annual Allocations
225.445
42
New Unit Set-Aside (NUSA)
225.450
43
Monitoring, Recordkeeping and Reporting for Gross Electrical Output and Useful
44
Thermal Energy
225.455
45
Clean Air Set-Aside (CASA)
225.460
46
Energy Efficiency, Renewable Energy, and Clean Technology Projects
2
225.465
47
Clean Air Set-Aside (CASA) Allowances
225.470
48
Clean Air Set-Aside (CASA) Applications and Recordkeeping
225.475
49
Agency Action on Clean Air Set-Aside (CASA) Applications
50
225.480
Compliance Supplement Pool
51
52
SUBPART E: CAIR NO
x
OZONE SEASON TRADING PROGRAM
53
54
Section
55
225.500
Purpose
56
225.505
Applicability
57
225.510
Compliance Requirements
58
225.515
Appeal Procedures
59
225.520
Permit Requirements
60
225.525
Trading Budget
225.530
61
Timing for Ozone Season Allocations
225.535
62
Methodology for Calculating Ozone Season Allocations
225.540
63
Ozone Season Allocations
225.545
64
New Unit Set-Aside (NUSA)
225.550
65
Monitoring, Recordkeeping and Reporting for Gross Electrical Output and Useful
66
Thermal Energy
225.555
67
Clean Air Set-Aside (CASA)
225.560
68
Energy Efficiency, Renewable Energy, and Clean Technology Projects
225.565
69
Clean Air Set-Aside (CASA) Allowances
225.570
70
Clean Air Set-Aside (CASA) Applications and Recordkeeping
225.575
71
Agency Action on Clean Air Set-Aside (CASA) Applications
72
73
AUTHORITY: Implementing Section 10, and authorized by Sections 27 and 28 of the Illinois
74
Environmental Protection Act [415 ILCS 5/10, 27 and 28].
75
SOURCE: Adopted in Docket R06- at Ill. Reg. , effective
, 200
67
76
77
.
78
79
SUBPART A: GENERAL PROVISIONS
80
Section 225.120
81
Severability
82
If any Section, subsection or clause of this Part is found invalid, asuch
83
finding willshall not affect
84
the validity of this Part as a whole or any Section, sentence or clause not found invalid.
85
Section 225.103
86
Abbreviations
87
88
Unless otherwise specified within this Part, the abbreviations used in this Part willshall be the
89
same as those found in 35 Ill. Adm. Code 211. The following abbreviations and acronyms are
90
used in this Part:
91
Act
Environmental Protection Act [415 ILCS 5
et seq.
]
92
 
3
Agency
Illinois Environmental Protection Agency
93
94
Btu
British thermal unit
CAA
95
Clean Air Act [42 U.S.C. 7401]
CAAPP
96
Clean Air Act Permit Program [415 ILCS 5/39.5]
CEMS
97
continuous emissions monitoring systems
EGU
98
electric generating unit
GO
99
Gross electrical output
HI
100
heat input
101
hr
hour
102
kg
kilogram
mmBtu
103
million Btu
104
MW
megawatt
MWe
105
megawatt electrical
MWh
106
megawatt hour
107
NO
x
nitrogen oxides
ORIS
108
Office of Regulatory Information Systems
109
O
2
oxygen
110
SO
2
sulfur dioxide
USEPA
111
United State Environmental Protection Agency
112
yr
year
113
Section 225.130
114
Definitions
115
The following definitions contained in this Section apply only to
116
for the provisions purposes of
this Part. Unless otherwise defined in this Section and unless
or a different meaning for of
117
a
118
term is clear from its context, the definitions of terms used in this Part shall have the meanings
specified for those terms in 35 Ill. Adm. Code 211, and 40 CFR §§
119
96.102, 96.202, and 96.302,
120
as incorporated by reference in Section 225.140 of this Subpart.
121
122
"Boiler" means an enclosed fossil or other fuel-fired combustion device used to produce
123
heat and to transfer heat to recirculating water, steam, or other medium.
124
125
"Bottoming-cycle cogeneration unit" means a cogeneration unit in which the energy input
126
to the unit is first used to produce useful thermal energy and at least some of the reject
127
heat from the useful thermal energy application or process is then used for electricity
128
production.
129
“CAIR authorized account representative” means, with regard tofor the purpose of
130
131
general accounts, a responsible natural person who is authorized, in accordance with 40
CFR 96 subparts BB, FF,
BBB, FFF, and
132
BBBB, and FFFF to transfer and otherwise
dispose of CAIR NO
x
,and
133
SO
2
, and NO
x
Ozone Season allowances, as applicable, held
in the CAIR NO
x
, SO
2
, and NO
x
Ozone Season general account, and with regard tofor
134
the purpose of
a CAIR NO
x
compliance account, a CAIR SO
2
Allowance System
135
136
Tracking account, or a CAIR NO
x
Ozone Season compliance account , the CAIR
137
designated representative of the source.
138
 
4
139
“CAIR designated representative” means for a CAIR NO
x
source, and a CAIR SO
2
140
source, and a CAIR NO
x
Ozone Season source and each CAIR NO
x
unit, and CAIR SO
2
141
unit and CAIR NO
x
Ozone Season unit at the source, the natural person who is authorized
142
by the owners and operators of the source and all such units at the source, in accordance
with 40 CFR 96 subparts BB, FF, BBB, FFF, and
143
BBBB, and FFFF as applicable, to
144
represent and legally bind each owner and operator in matters pertaining to the CAIR
145
NO
x
Annual Trading Program, CAIR SO
2
Trading Program, and the CAIR NO
x
Ozone
146
Season Trading Program, as applicable. For any unit that is subject to one or more of the
147
following programs: CAIR NO
x
Annual Trading Program, the CAIR SO
2
Trading
148
Program, the CAIR NO
x
Ozone Season Trading Program, or the federal Acid Rain
Program, the designated representative for thesuch
149
unit shallmust be the same natural
150
person for all programs all applicable to the unit.
151
“CAIR NO
x
compliance account” means, for the purposes of Subparts D and E of this
152
Part, a CAIR NO
x
Allowance Tracking System account, established by USEPA for a
153
CAIR NO
x
source under 40 CFR 96 subparts FF and FFFF in which any CAIR NO
x
154
allowance allocations for the affected units at the source are initially recorded and in
155
which are held any CAIR NO
x
allowances available for use for a control period in order
156
to meet the source’s CAIR NO
x
emissions limitations in accordance with Sections
157
225.410 and 225.510 of this Part, and 40 CFR §§ 96.154 and 96.354, as incorporated by
158
reference in Section 225.140 of this Subpart.
159
160
161
“CAIR Trading Programs” means the requirements of this Part, and those provisions of
162
the federal CAIR NO
x
Annual Season, CAIR SO
2
, or CAIR NO
x
Ozone Season Trading
Programs set forth in 40 CFR 96, as incorporated by reference in Section 225.140 of this
163
164
Subpart.
165
“Coal-fired” means
:
166
167
a)
168
For purposes of Subparts B, D, and E, combusting any amount of coal or
169
coal-derived fuel, alone or in combination with any amount of any other
fuel, during a specified year;
170
171
b)
For purposes of Subpart C, combusting any amount of coal or coal-derived
172
fuel, alone, or in combination with any amount of any other fuel
173
.
174
"Cogeneration unit" means
175
, for the purposes of Subparts C, D, and E,
a stationary, fossil
176
fuel-fired boiler or stationary, fossil fuel-fired combustion turbine:
177
a)
178
Having equipment used to produce electricity and useful thermal energy
179
for industrial, commercial, heating, or cooling purposes through the
180
sequential use of energy; and
181
b)
182
Producing during the 12-month period starting on the date the unit first
183
produces electricity and during any calendar year after the calendar year in
184
which the unit first produces electricity:
 
5
185
1)
186
For a topping-cycle cogeneration unit:
187
i)
188
Useful thermal energy not less than 5 percent of total
189
energy output; and
190
ii)
191
Useful power that, when added to one-half of useful
192
thermal energy produced, is not less than 42.5 percent of
193
total energy input, if useful thermal energy produced is 15
194
percent or more of total energy output, or not less than 45
195
percent of total energy input, if useful thermal energy
196
produced is less than 15 percent of total energy output.
197
2)
198
For a bottoming-cycle cogeneration unit, useful power not less
199
than 45 percent of total energy input.
200
201
“Combined cycle system” means a system comprised of one or more combustion
202
turbines, heat recovery steam generators, and steam turbines configured to improve
203
overall efficiency of electricity generation or steam production.
204
205
“Combustion turbine” means:
206
207
An enclosed device comprising a compressor, a combustor, and a turbine and in
208
which the flue gas resulting from the combustion of fuel in the combustor passes
209
through the turbine, rotating the turbine; and
210
211
If the enclosed device pursuant to theunder paragraph above is combined cycle,
212
any associated duct burner, heat recovery steam generator and steam turbine.
213
“Commence commercial operation” means, with respect to Subparts C, D and E of this
214
215
Part
, with regard to a unit serving a generator:
216
a)
217
To have begun to produce steam, gas, or other heated medium used to
218
generate electricity for sale or use, including test generation, except as
provided in 40 CFR §
219
96.105, 96.205, or 96.305, as incorporated by
220
reference in Section 225.140 of this Subpart.
221
1)
For a unit that is a CAIR SO
2
unit, CAIR NO
x
unit, or a CAIR NO
x
222
Ozone Seasonan
affected
unit pursuant tounder 40 CFR §
223
96.104,
224
96.204 or 96.304, respectively, on the date the unit commences
225
commercial operation on the later of November 15, 1990 or the
226
date the unit commence commercial operation as defined in
227
paragraph (a) of this definition and that subsequently undergoes a
228
physical change (other than replacement of the unit by a unit at the
229
same source), such date willshall
remain the unit’s date of
6
230
commencement of commercial operation, which willshall continue
231
to be treated as the same unit.
232
2)
For a unit that is a CAIR SO
2
unit, CAIR NO
x
unit, or a CAIR NO
x
233
Ozone Season
an affected
unit under pursuant to 40 CFR §
234
96.104,
235
96.204 or 96.304, respectively, on the later of November 15, 1990
236
or the date the unit commences commercial operation as defined in
237
paragraph (a) of this definition and that is subsequently replaced by
a unit at the same source (e.g., repowered), such date willshall
238
remain the replace
239
d
unit’s date of commencement of commercial
operation, and the replace
240
dment unit willshall be treated as a
241
separate unit with a separate date for commencement of
242
commercial operation as defined in paragraphs (a) or (b) of this
243
definition as appropriate.
244
b)
245
Notwithstanding paragraph (a) of this definition and except as provided in
40 CFR § 96.105, 96.205, or 96.305 for a unit that is not a CAIR SO
2
unit,
246
CAIR NO
x
unit, or a CAIR NO
x
Ozone Seasonan affected
unit pursuant
247
tounder Section 225.305, 225.405, or 225.405, respectively,40 CFR §
248
249
96.104, 96.204 or 96.304 on the later of November 15, 1990 or the date
250
the unit commences commercial operation as defined in paragraph (a) of
251
this definition, the unit’s date for commencement of commercial operation
willshall be the date on which the unit becomes an affected unit under
252
pursuant to Section 225.305, 225.405, or 225.405, respectively40 CFR §
253
96.104, 96.204, or 96.304
254
.
255
1)
256
For a unit with a date for commencement of commercial operation
257
as defined in paragraph (b) of this definition and that subsequently
258
undergoes a physical change (other than replacement of the unit by
259
a unit at the same source), such date willshall remain the unit’s
date of commencement of commercial operation, which shall
260
261
continue to be treated as the same unit.
262
2)
263
For a unit with a date for commencement of commercial operation
264
as defined in paragraph (b) of this definition and that is
265
subsequently replaced by a unit at the same source (e.g.,
repowered), such date willshall
remain the replace
266
dment unit’s
267
date of commencement of commercial operation, and the
replace
268
dment
unit willshall be treated as a separate unit with a
269
separate date for commencement of commercial operation as
270
defined in paragraph (a) or (b) of this definition as appropriate.
271
c)
Notwithstanding paragraphs (a) and (b) of this definition, for a unit not
272
serving a generator producing electricity for sale, the unit’s date of
273
commencement of operation shall also be the unit’s date of
274
commencement of commercial operation.
275
7
“Commence construction” means, for the purposes of Section 225.460(f) and 225.560(f),
276
that the owner or his designee
has obtained all necessary preconstruction approvals (e.g.
277
zoning) or permits and either has:
278
279
a)
Begun, or caused to begin, a continuous program of actual on-site
280
construction of the source, to be completed within a reasonable time; or
281
282
b)
Entered into binding agreements or contractual obligations, which cannot
283
be cancelled or modified without substantial loss to the owner or operator,
284
to undertake a program of actual construction of the source to be
285
completed within a reasonable time. For purposes of this definition:
286
287
1)
“Construction” shall be determined as any physical change or
288
change in the method of operation, including but not limited to
289
fabrication, erection, installation, demolition, or modification of
290
projects eligible for CASA allowances, as set forth in Sections
291
225.460 and 225.560.
292
293
2)
“A reasonable time: shall be determined considering but not
294
limited to the following factors: the nature and size of the project,
295
the extent of design engineering, the amount of off-site
296
preparation, whether equipment can be fabricated or can be
297
purchased, when the project begins (considering both the seasonal
298
nature of the construction activity and the existence of other
299
projects competing for construction labor at the same time, the
300
place of the environmental permit in the sequence of corporate and
301
overall governmental approval), and the nature of the project
302
sponsor (e.g., private, public, regulated).
303
304
“Commence operation,” for purposes of Subparts of
305
C, D and E of this Part, means:
306
a)
307
To have begun any mechanical, chemical, or electronic process, including,
with regard tofor the purpose of
308
a unit, start-up of a unit’s combustion
chamber, except as provided in 40 CFR §
309
96.105, 96.205, or 96.305, as
310
incorporated by reference in Section 225.140 of this Subpart.
311
b1
)
312
For a unit that undergoes a physical change (other than replacement of the
313
unit by a unit atas the same source) after the date the unit commences
operation
s
as defined in paragraph (a) of this definition, such date willshall
314
remain the date of commencement of operation of the unit, which willshall
315
316
continue to be treated as the same unit.
317
c2
)
318
For a unit that is replaced by a unit at the same source (e.g., repowered),
319
after the date the unit commences operation as defined in paragraph (a) of
320
this definition, such date willshall remain the replaced unit’s date of
321
commencement of operation, and the replacement unit willshall
be treated
 
8
322
as a separate unit with a separate date for commencement of operation as
323
defined in paragraphs (a), or (b), or (c) of this definition as appropriate.
324
b)
Notwithstanding paragraph (a) of this definition and solely for the
325
purposes of 40 CFR 96, subparts HH, HHH, and HHHH, for a unit that is
326
not an affected unit under 40 CFR § 96.104, 96.204, or 96.304 on the later
327
of November 15, 1990 or the date the unit commences operation as
328
defined in paragraph (a) of this definition and subsequently becomes an
329
affected uni, the unit’s date for commencement of operation
shall be the
330
date on which the unit becomes an affected unit under 40 CFR § 96.104,
331
96.204, or 96.304.
332
333
1)
For a unit with a date for commencement of operation as defined in
334
paragraph (b) of this definition and that subsequently undergoes a
335
physical change
(other than replacement of the unit by a unit at the
336
same source), such date shall remain the unit’s date of
337
commencement of operation.
338
339
2)
For a unit with a date for commencement of operation as defined in
340
paragraph (b) of this definition and that is subsequently replaced
341
by a unit at the same source (e.g., repowered), the replacement unit
342
shall be treated as a separate unit with a separate date for
343
commencement of operation as defined in paragraphs (a) or (b) of
344
this definition as appropriate.
345
346
347
“
Common stack” means a single flue through which emissions from two or more units
348
are exhausted.
349
“Compliance account” means, for the purposes of Subparts D and E , a CAIR NO
x
350
Allowance Tracking System account, established by USEPA for a CAIR NO
x
source or
351
CAIR NO
x
Ozone Season source pursuant to 40 CFR 96 subparts FF and FFFF in which
352
any CAIR NO
x
allowance or CAIR NO
x
Ozone Season allowance allocations for the
353
CAIR NO
x
units or CAIR NO
x
Ozone Season units at the source are initially recorded
354
and in which are held any CAIR NO
x
or CAIR NO
x
Ozone Season allowances available
355
for use for a control period in order to meet the source’s CAIR NO
x
or CAIR NO
x
Ozone
356
Season emissions limitations in accordance with Sections 225.410 and 225.510, and 40
357
CFR 96.154 and 96.354, as incorporated by reference in Section 225.140. CAIR NO
x
358
allowances may not be used for compliance with the CAIR NO
x
Ozone Season Trading
359
program and CAIR NO
x
Ozone Season allowances may not be used for compliance with
360
the CAIR NO
x
Annual Trading program.
361
362
363
“Control period” means:
364
For the CAIR SO
2
and NO
x
Annual Trading programs in Subparts C and D of this
365
366
Part
, the period beginning January 1 of a calendar year, except as provided in
Sections 225.310(d)(3) and 225.410(d)(3) of this Subpart
367
, and ending on
9
368
December 31 of the same year, inclusive; or
369
370
For the CAIR NO
x
Ozone Season Trading Program in Subpart E of this Part, the
371
period beginning May 1 of a calendar year, except as provided in Section
372
225.510(d)(3) of this Subpart, and ending on September 30 of the same year,
373
inclusive.
374
375
“Electric generating unit (EGU)” means a fossil fuel-fired stationary boiler, combustion
376
turbine or combined cycle system that serves a generator that has a nameplate capacity
377
greater than 25 MWe and produces electricity for sale.
378
379
“Fossil fuel” means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous
380
fuel derived from such material.
381
382
“Fossil fuel-fired” means the combusting any amount of fossil fuel, alone or in
383
combination with any other fuel in any calendar year.
384
385
“Generator” means a device that produces electricity.
386
“Gross electrical output” means the total electrical output from an electric generating unit
387
(EGU
388
) before making any deductions for energy output used in any way related to the
production of energy. For an electric generating unitEGU
389
generating only electricity, the
390
gross electrical output is the output from the turbine/generator set.
391
392
“Heat input” means, for the purposes ofwith regard Subparts C, D, and E of this Part,
393
with regard to a specified period of time, the product (in mmBtu/hr) of the gross calorific
394
value of the fuel (in Btu/lb) divided by 1,000,000 Btu/mmBtu and multiplied by the fuel
395
feed rate into a combustion device (in lb of fuel/time), as measured, recorded and
396
reported to USEPA by the CAIR designated representative and determined by USEPA in
397
accordance with 40 CFR 96, subpart HH, HHH, or HHHH , if applicable, and excluding
398
the heat derived from preheated combustion air, recirculated flue gases, or exhaust from
399
other sources.
400
401
“Higher heating value (HHV)” means the total heat liberated per mass of fuel burned
402
(Btu per pound), when fuel and dry air at standard conditions undergo complete
403
combustion and all resultant products are brought to their standard states at standard
404
conditions.
405
406
“Integrated gasification combined cycle (IGCC)” means a coal-fired electric utility steam
407
generating unit that burns a synthetic gas derived from coal in a combined-cycle gas
408
turbine. No coal is directly burned in the unit during operation.
409
410
"Nameplate Capacity" means, starting from the initial installation of a generator, the
411
maximum electrical generating output (in MWe) that the generator is capable of
412
producing on a steady state basis and during continuous operation (when not restricted by
413
seasonal or other deratings) as of such installation
as specified by the manufacturer of the
10
414
generator or, starting from the completion of any subsequent physical change in the
415
generator resulting in an increase in the maximum electrical generating output (in MWe)
416
that the generator is capable of producing on a steady state basis and during continuous
417
operation (when not restricted by seasonal or other deratings), such increased maximum
418
amount as of such completion as specified by the person conducting the physical change.
419
“Oil-fired unit” means a unit combusting fuel oil for more than 15
420
.0 percent of the annual
421
heat input in a specified year and not qualifying as coal-fired.
422
“Project sponsor’ means a person, including the owner or operator of an electric
423
generating unit that implements or helps to implement an energy efficiency and
424
conservation, renewable energy, or clean technology project as listed in Sections 225.460
425
and 225.560 of this Part.
426
427
428
“Potential electrical output capacity” means 33 percent of a unit’s maximum design heat
429
input, expressed in mmBtu/hr divided by 3.413 mmBtu/MWh, and multiplied by 8,760
430
hr/yr.
431
“Project sponsor” means a person or an entity, including but not limited to the owner or
432
operator of an EGU or a not-for-profit group, that provides the majority of funding for an
433
energy efficiency and conservation, renewable energy, or clean technology project as
434
listed in Sections 225.460 and 225.560, unless another person or entity is designated by a
435
written agreement as the project sponsor for the purpose of applying for NO
x
allowances
436
or NO
x
Ozone Season allowances from the CASA.
437
438
439
“Rated-energy efficiency” means the percentage of thermal energy input that is recovered
440
as useable energy in the form of gross electrical output, useful thermal energy, or both
441
that is used for heating, cooling, industrial processes, or other beneficial uses as follows:
442
443
For electric generators, rated energy efficiency is calculated as one kilowatt hour
444
(3,413 Btu) of electricity divided by the unit’s design heat rate using the higher
445
heating value of the fuel, and expressed as a percentage.
446
447
For combined heat and power projects, rated-energy efficiency is calculated using
448
the following formula:
449
REE =
450
((GO + UTE)/HI)
×
100
451
452
Where:
453
454
REE =
Rated-energy efficiency, expressed as percentage.
GO
=
455
Gross electrical output of the system expressed in Btu/hr.
UTE =
456
Useful thermal output from the system that is used for
457
heating, cooling, industrial processes or other beneficial
458
uses, expressed in Btu/hr.
HI
=
459
Heat input, based upon the higher heating value of fuel, in
11
460
Btu/hr.
461
“Repowered” means, with regard tofor the purpose of
aan electric generating
462
unit,
463
replacement of a coal-fired boiler with one of the following coal-fired technologies at the
464
same source as the coal-fired boiler:
465
466
Atmospheric or pressurized fluidized bed combustion;
467
468
Integrated gasification combined cycle;
469
470
Magnetohydrodyamics;
471
472
Direct and indirect coal-fired turbines;
473
474
Integrated gasification fuel cells; or
475
476
As determined by the USEPA, a derivative of one or more of the technologies
477
listed above, and any other coal-fired technology capable of controlling multiple
478
combustion emissions simultaneously with improved boiler generation efficiency
479
and with significantly greater waste reduction relative to the performance of
480
technology in widespread commercial use as of January 1, 2005.
481
482
“Total energy output” means, with respect to a cogeneration unit, the sum of useful
483
power and useful thermal energy produced by the cogeneration unit.
484
485
“Useful thermal energy” means, with regard tofor the purpose of a cogeneration unit, the
486
thermal energy that is made available to an industrial or commercial process, excluding
487
any heat contained in condensate return or makeup water:
488
489
Used in a heating application (e.g., space heating or domestic hot water heating);
490
or
491
492
Used in a space cooling application (e.g., thermal energy used by an absorption
493
chiller).
494
Section 225.140
495
Incorporations by Reference
496
497
The following materials are incorporated by reference. These incorporations do not include any
498
later amendments or editions.
499
500
a)
CAIR SO
2
Trading Program, 40 CFR 96, subpart AAA (CAIR SO
2
Trading
501
Program General Provisions, excluding 40 CFR §§
96.204, and 96.206); 40 CFR
502
96, subpart BBB (CAIR Designated Representative for CAIR SO
2
Sources); 40
503
CFR 96, subpart FFF (CAIR SO
2
Allowance Tracking System); 40 CFR 96,
504
subpart GGG (CAIR SO
2
Allowance Transfers); and 40 CFR 96, subpart HHH
(Monitoring and Reporting
505
) (2006)
.
12
506
b)
507
CAIR NO
x
Annual Trading Program, 40 CFR 96, subpart AA (NO
x
Annual
508
Trading Program General Provisions, excluding 40 CFR §§ 96.104, 96.105(b)(2),
509
and 96.106); 40 CFR 96, subpart BB (CAIR Designated Representative for CAIR
510
NO
x
Sources); 40 CFR 96, subpart FF (CAIR NO
x
Allowance Tracking System);
511
40 CFR 96, subpart GG (CAIR NO
x
Allowance Transfers); and 40 CFR 96,
512
subpart HH (Monitoring and Reporting) (2006).
513
514
c)
CAIR NO
x
Ozone Season Trading Program 40 CFR 96, subpart AAAA (CAIR
NO
x
Ozone Season Trading Program General Provisions) (excluding 40 CFR §§
515
516
96.304, 96.305(b)(2), and 96.306); 40 CFR 96, subpart BBBB (CAIR Designated
517
Representative for CAIR NO
x
Ozone Season Sources); 40 CFR 96, subpart FFFF
518
(CAIR NO
x
Ozone Season Allowance Tracking System); 40 CFR 96, subpart
519
GGGG (CAIR NO
x
Ozone Season Allowance Transfers); and 40 CFR 96, subpart
520
HHHH (Monitoring and Reporting) (2006)
.
521
d)
522
40 CFR 75 (20062005).
523
e)
524
40 CFR 78 (20062005).
525
f)
526
Federal Energy Management Program,
M&V Measurement and Verification for
527
Federal Energy Projects
, U.S. Department of Energy, Office of Energy
528
Efficiency and Renewable Energy, Version 2.2, DOE/GO-102000-0960
529
(September 2000).
530
531
SUBPART C: CAIR SO
2
TRADING PROGRAM
532
Section 225.300
533
Purpose
534
The purpose of this Subpart C is to control the emissions of sulfur dioxide (SO
2
) from electric
535
536
generating units
(EGUs) annually by implementing the CAIR SO
2
Trading Program pursuant to
537
40 CFR 96, as incorporated by reference in Section 225.140 of this Subpart.
538
Section 225.305
539
Applicability
540
a)
Except as provided in subsections (b)(1), (b)(3), and (b)(4) of this Section:
541
542
1)
The following units are CAIR SO
2
units, and any source that includes one
543
or more such units is a CAIR SO
2
source subject to the requirements of
544
this Subpart C
: any stationary, fossil-fuel-fired boiler or stationary, fossil-
545
fuel-fired combustion turbine serving at any time, since the later of
546
November 15, 1990 or the start-up the unit’s combustion chamber, a
547
generator with nameplate capacity of more than 25 MWe producing
548
electricity for sale.
549
550
13
2)
If a stationary boiler or stationary combustion turbine that pursuant to
551
subsection (a)(1) of this Section, is not a CAIR SO
2
unit begins to combust
552
fossil fuel or to serve a generator with nameplate capacity of more than 25
553
MWe producing electricity for sale, the unit will become a CAIR SO
2
unit
554
as provided in subsection (a)(1) of this Section on the first date on which it
555
both combusts fossil fuel and serves such generator.
556
557
b)
The units that meet the requirements set forth in subsections (b)(1), (b)(3), and
558
(b)(4) of this Section
will
not be CAIR SO
2
units and units that meet the
559
requirements of subsections (b)(2) and (b)(5) of this Section are CAIR SO
2
units:
560
561
1)
Any unit that is a CAIR SO
2
unit pursuant to subsection (a)(1) or (a)(2) of
562
this Section and:
563
564
A)
Qualifies as a cogeneration unit during the 12-month period
565
starting on the date the unit first produces electricity and
566
continuing to qualify as a cogeneration unit; and
567
568
B)
Does not serve at any time, since the later of November 15, 1990
569
or the start-up of the unit’s combustion chamber, a generator with
570
nameplate capacity of more than 25 MWe supplying any calendar
571
year more than one-third of the of the unit’s potential electric
572
output capacity or 219,000 MWh, whichever is greater, to any
573
utility power distribution for sale.
574
575
2)
If a unit qualifies as a cogeneration unit during the 12-month period
576
starting on the date the unit first produces electricity and meets the
577
requirements of subsection (b)(1) of this Section for at least one calendar
578
year, but subsequently no longer meets all such requirements, the unit
579
shall become a CAIR SO
2
unit starting on the earlier of January 1 after the
580
first calendar year during which the unit no longer qualifies as a
581
cogeneration unit or January 1 after the first calendar year during which
582
the unit no onger meets the requirements of subsection (b)(1)(B) of this
583
Section.
584
585
3)
Any unit that is a CAIR SO
2
unit pursuant to subsection (a)(1) or (a)(2) of
586
this Section commencing operation before January 1, 1985 and
:
587
588
A)
Qualif
ies as a solid waste incineration unit; and
589
590
B)
With an average annual fuel consumption of non-fossil fuel for
591
1985-1987 exceeding 80 percent (on a Btu basis) and an average
592
annual fuel consumption of non-fossil fuel for any three
593
consecutive calendar years after 1990 exceeding 80 percent (on a
594
Btu basis).
595
596
14
4)
Any unit that is a CAIR SO
2
unit under subsection (a)(1) or (a)(2) of this
597
Section commencing operation on or after January 1, 1985: and
598
599
A)
Qualif
ies as a solid waste incineration unit; and
600
601
B)
With an average annual fuel consumption of non-fossil fuel the
602
first three years of operation exceeding 80 percent (on a Btu basis)
603
and an average annual fuel consumption of non-fossil fuel for any
604
three consecutive calendar years after 1990 exceeding 80 percent
605
(on a Btu basis).
606
607
5)
If a unit qualifies as a solid waste incineration unit and meets the
608
requirements of subsection (b)(3) or (b)(4) of this Section for at least three
609
consecutive years, but subsequently no longer meets all such
610
requirements, the unit shall become a CAIR SO2 unit starting on the
611
earlier of January 1 after the first three consecutive calendar years after
612
1990 for which the unit has an average annual fuel consumption of fuel of
613
20 percent or more.
614
615
a)
A fossil fuel-fired stationary boiler, combustion turbine is an electric generating
616
unit if it serves a generator that has a nameplate capacity greater than 25 MWe
617
and produces electricity for sale and is not included in Appendix D of 35 Ill.
618
Adm. Code Part 217. An electric generating unit is subject to the SO
2
Trading
619
Program contained in this Subpart and is a CAIR SO
2
unit or an affected unit for
620
the purposes of this Subpart.
621
622
b)
Notwithstanding subsection (a) of this Section, an EGU shall not be an affected
623
unit and is not subject to the CAIR SO
2
Trading Program contained in this
624
Subpart if it meets the requirements of either subsection (b)(1)(A) or (b)(2)(A) of
625
this Section, as follows:
626
627
1)
A unit that:
628
629
A)
Meets the definition of a cogeneration unit in Section 225.130 of
630
this Part; and
631
632
i)
Qualifies as a cogeneration unit during the 12-month period
633
starting on the date the unit first produces electricity, and
634
continues to qualify as a cogeneration unit; and
635
636
ii)
Does not serve at any time, since the later of November 15,
637
1990, or the start-up
of the unit’s combustion chamber, a
638
generator with a nameplate capacity of more than 25 MWe,
639
and which supplies in any calendar year more than one-
640
third of the unit’s potential electrical output capacity or
641
219,000 MWh, whichever is greater, to a utility power
642
15
distribution system for sale.
643
644
B)
If a unit qualifies as a cogeneration unit during the 12-month
645
period starting on the date the unit first produces electricity but
646
subsequently no longer qualifies as a cogeneration unit, the unit
647
shall be subject to subsection (a) of this Section starting on the
648
January 1 after which the unit first no longer qualifies as a
649
cogeneration unit.
650
651
2)
A unit that:
652
653
A)
Qualifies as a solid waste incineration unit as defined by Section
654
129(g) of the CAA [42 U.S.C. §
7429(g)]; and
655
656
i)
Commences operation on or after January 1, 1985; and
657
658
ii)
Has an average annual fuel consumption of non-fossil fuel
659
for the first three calendar years of operation exceeding 80
660
percent (on a Btu basis) and an average annual fuel
661
consumption of non-fossil fuel for any three consecutive
662
calendar years after 1990 exceeding 80 percent (on a Btu
663
basis).
664
665
B)
If a unit qualifies as a solid waste incineration unit and meets the
666
requirements of subsection (b)(2)(A) of this Section for at least
667
three consecutive calendar years, but subsequently no longer meets
668
all such requirements, the unit shall become an affected unit
669
starting on the January 1 after which the unit has an average annual
670
fuel consumption of fossil fuel of 20 percent or more.
671
672
Section 225.310
673
Compliance Requirements
674
a)
The owner or operator of a CAIR SO
2
an affected
675
unit shallmust comply with the
676
requirements of the CAIR SO
2
Trading Program for Illinois as set forth in this
677
Subpart C and 40 CFR 96, subpart AAA (CAIR SO
2
Trading Program General
678
Provisions, excluding 40 CFR §§ 96.204, and 96.206); 40 CFR 96, subpart BBB
679
(CAIR Designated Representative for CAIR SO
2
Sources); 40 CFR 96, subpart
680
FFF (CAIR SO
2
Allowance Tracking System); 40 CFR 96, subpart GGG (CAIR
681
SO
2
Allowance Transfers); and 40 CFR 96, subpart HHH (Monitoring and
682
Reporting); as incorporated by reference in Section 225.140 of this Part.
683
684
b)
Permit requirements:
685
1)
The owner or operator of each source with one or more CAIR SO
2
affected
686
687
units at the source must apply for a permit issued by the Agency with
688
federally enforceable conditions covering the CAIR SO
2
Trading Program
16
689
(“CAIR SO
2
permit”) that complies with the requirements of Section
690
225.320 of this Subpart (Permit Requirements).
691
2)
The owner or operator of each CAIR SO
2
affected
source and each CAIR
692
SO
2
affected
unit at the source must operate the CAIR SO
2
affected
693
unit in
compliance with itssuch
694
CAIR SO
2
permit.
695
696
c)
Monitoring requirements:
697
1)
The owner or operator of each CAIR SO
2
affected
source and each CAIR
698
699
SO
2
affected unit at the source must comply with the monitoring
700
requirements of 40 CFR 96, subpart HHH. The CAIR designated
representative of each CAIR SO
2
affected source and each CAIR SO
2
701
affected
702
unit at the CAIR SO
2
affected source must comply with those
sections of the monitoring
703
, reporting and recordkeeping
requirements of
704
40 CFR 96, subpart HHH, applicable to the CAIR designated
705
representative.
706
2)
The compliance of each CAIR SO
2
affected
707
sourceunit with the emissions
708
limitation pursuant tounder subsection (d) of this Section willshall be
709
determined by the emissions measurements recorded and reported in
710
accordance with 40 CFR 96, subpart HHH and 40 CFR 75.
711
712
d)
Emission requirements:
713
1)
714
By the allowance transfer deadline, March 1, 2011, and by March 1 of
each subsequent year, the owner or operatorCAIR designated
715
representative
of each CAIR SO
2
affected source and each CAIR SO
2
716
affected
717
unit at the source shallmust hold a tonnage equivalent in CAIR
718
SO
2
allowances available for compliance deductions pursuant tounder 40
CFR §§
96.254(a) and (b) in the CAIR SO
2
affected
719
source’s CAIR SO
2
Allowance System Tracking account. The allowance transfer deadline
720
means by midnight of March 1 (if it is a business day) or midnight of the
721
first business day thereafter.
The number of allowances held may
722
shall not
be less than the total tons of SO
2
emissions for the control period from all
723
CAIR SO
2
affected
units at the CAIR SO
2
affected source, rounded to the
724
725
nearest whole ton
, as determined in accordance with 40 CFR 96, subpart
HHH, plus any number of allowances necessary to account for actual
726
727
utilization (e.g., for testing, start-up,
malfunction, and shut down).
728
2)
Each ton of SO
2
emitted by a CAIR SO
2
an affected
729
unit in excess of the
730
tonnage authorizationnumber
of CAIR SO
2
allowances held by the owner
731
or operator for each CAIR SO
2
affected unit in its CAIR SO
2
Allowance
732
System Tracking account for each day of the applicable
control period
willshall
constitute a separate violation of this Subpart
C, the Clean Air
733
Act,
734
and the Act.
17
735
3)
Each CAIR SO
2
affected
unit willshall be subject to the monitoring and
736
compliance requirements of subsection
737
s (c)(1) and (d)(1) of this Section
738
starting on the later of January 1, 20092010
, or the deadline for meeting
739
the unit’s monitoring certification requirements pursuant tounder
40 CFR
§ 96.270(b)(1) or (2) and for each control period thereafter
740
.
741
742
4)
CAIR SO
2
allowances shallmust be held in, deducted from, or transferred
743
into or
among allowance accounts in accordance with this Subpart and 40
744
CFR 96, subparts FFF and GGG.
745
5)
746
In order to comply with the requirements of subsection (d)(1) of this
Section, a CAIR SO
2
allowance may not be deductedutilized
747
for
748
compliance according to subsection (d)(1) of this Section, for
a control
749
period in a calendar
year beforeprior to the year for which the allowance is
750
allocated.
751
6)
A CAIR SO
2
allowance allocated by USEPA under the CAIR SO
2
Trading
752
753
Program is a limited authorization to emit SO
2
in accordance with the
754
CAIR SO
2
Trading Program. No provision of the CAIR SO
2
Trading
755
Program, the CAIR SO
2
permit application, the CAIR SO
2
permit, or a
756
retired unit exemption pursuant tounder 40 CFR § 96.205, and no
757
provision of law, willshall be construed to limit the authority of the United
758
States or the State to terminate or limit this authorization.
759
7)
760
A CAIR SO
2
allowance allocated by USEPA pursuant tounder the CAIR
761
SO
2
Trading Program does not constitute a property right.
762
8)
763
Upon recordation by USEPA pursuant tounder 40 CFR 96, subpart FFF or
40 CFR 96, subpart GGG, every allocation, transfer, or deduction of a
764
CAIR SO
2
an allowance to or from a CAIR SO
2
an affected
source’s
765
766
compliance account is deemed to amend automatically, and become a part
of, any CAIR SO
2
permit of the CAIR SO
2
affected
767
source. This
768
automatic amendment of the CAIR SO
2
permit willshall be deemed an
769
operation of law and will not require any further review.
770
e)
771
Recordkeeping and reporting requirements:
772
1)
Unless otherwise provided, the owner or operator of the CAIR SO
2
773
affected
source and each CAIR SO
2
affected unit at the source shallmust
774
775
keep on site at the source each of the documents listed in subsections
776
(e)(1)(A) through (e)(1)(D) of this Section for a period of five (5) years
777
from the date the document is created. This period may be extended for
778
cause, at any time prior to the end of five years, in writing by the Agency
779
or USEPA.
780
18
A)
781
The certificate of representation for the CAIR designated
representative for the source and each CAIR SO
2
affected
782
unit at
783
the source, all documents that demonstrate the truth of the
784
statements in the certificate of representation, provided that the
785
certificate and documents must be retained on site at the source
786
beyond such five-year period until thesuch documents are
787
superseded because of the submission of a new certificate of
788
representation pursuant tounder 40 CFR § 96.213, changing the
789
CAIR designated representative.
790
B)
791
All emissions monitoring information, in accordance with 40 CFR
792
96, subpart HHH.
793
C)
794
Copies of all reports, compliance certifications, and other
795
submissions and all records made or required pursuant tounder the
796
CAIR SO
2
Trading Program or documents necessary to
797
demonstrate compliance with the requirements of the CAIR SO
2
Trading Program or with the requirements of this Subpart C
798
.
799
D)
800
Copies of all documents used to complete a CAIR SO
2
permit
application and any other submission or documents used to
801
802
demonstrate compliance pursuant tounder the CAIR SO
2
Trading
803
Program.
804
2)
The CAIR designated representative of a CAIR SO
2
an affected
805
source and
806
each CAIR SO
2
affected unit at the source must submit to the Agency and
USEPA the reports and compliance certifications required pursuant
807
tounder the CAIR SO
2
Trading Program, including those pursuant tounder
808
809
40 CFR 96, subpart HHH.
810
811
f)
Liability:
812
1)
No revision of a permit for a CAIR SO
2
an affected
unit may
813
shall excuse
814
any violation of the requirements of this Subpart C
or the requirements of
815
the CAIR SO
2
Trading Program.
816
2)
Each CAIR SO
2
affected
source and each affected CAIR SO
2
unit shallmust
817
818
meet the requirements of the CAIR SO
2
Trading Program.
819
3)
Any provision of the CAIR SO
2
Trading Program that applies to CAIR
820
821
SO
2
an affected source (including any provision applicable to the CAIR
designated representative of a CAIR SO
2
an affected
822
source) willshall also
apply to the owner and operator of thesuch
CAIR SO
2
affected
823
source and
to the owner and operator of each CAIR SO
2
affected
824
unit at the source.
825
4)
Any provision of the CAIR SO
2
Trading Program that applies to a CAIR
826
19
SO
2
an affected
827
unit (including any provision applicable to the CAIR
designated representative of a CAIR SO
2
an affected
828
unit) willshall also
apply to the owner and operator of thesuch
CAIR SO
2
affected
829
unit.
Except with regard to the requirements applicable to affected units with a
830
common stack under 40 CFR 96, subpart HHH, the owner, the operator,
831
and the CAIR designated representative of an affected unit shall not be
832
liable for any violation by any other affected unit of which they are not an
833
owner or operator or the CAIR designated representative.
834
835
5)
836
The CAIR designated representative of a CAIR SO
2
an affected unit that
837
has excess SO
2
emissions in any control period shallmust surrender the
allowances as required for deduction pursuant tounder 40 CFR §
838
839
96.254(d)(1).
840
6)
841
The owner or operator of a CAIR SO
2
an affected unit that has excess SO
2
842
emissions in any control period shallmust pay any fine, penalty, or
assessment or comply with any other remedy imposed pursuant tounder
843
844
the Act and 40 CFR § 96.254(d)(2).
845
g)
846
Effect on other authorities. No provision of the CAIR SO
2
Trading Program, a
847
CAIR SO
2
permit application, a CAIR SO
2
permit, or a retired unit exemption
848
pursuant tounder 40 CFR § 96.205 willshall be construed as exempting or
849
excluding the owner and operator and, to the extent applicable, the CAIR
designated representative of a CAIR SO
2
an affected
source or a CAIR
850
851
SO
2
affected unit, from compliance with any other regulation promulgated
852
pursuant tounder the CAA, the Act, any State regulation or permit, or a federally
853
enforceable permit.
854
Section 225.315
855
Appeal Procedures
856
857
The appeal procedures for decisions of USEPA pursuant tounder
the CAIR SO
2
Trading Program
858
are set forth in 40 CFR 78, as incorporated by reference in Section 225.140 of this Part.
859
Section 225.320
860
Permit Requirements
861
862
a)
Permit requirements:
863
1)
The owner or operator of each source with a CAIR SO
2
an affected
864
unit is
required to submit
:
865
866
867
A)
A a complete permit application addressing all applicable CAIR
868
SO
2
Trading Program requirements for a permit meeting the
requirements of this Section
225.320, applicable to each CAIR
869
SO
2
affected
unit at the source. Each CAIR SO
2
permit mustshall
870
871
contain elements required for a complete CAIR SO
2
permit
872
application pursuant tounder
subsection (b)(2) of this Section.
20
873
B)
Any supplemental information that the Agency determines is
874
necessary in order to review a CAIR permit application and issue a
875
CAIR permit.
876
877
2)
Each CAIR SO
2
permit will be issued pursuant to Section 39 or 39.5 of the
878
879
Act, mustshall contain federally enforceable conditions addressing all
applicable CAIR SO
2
Trading Program and requirements
,
880
and willshall be
a complete and segregable portion of the source’s entire permit pursuant
881
882
tounder
subsection (a)(1) of this Section.
883
3)
No CAIR SO
2
permit may
884
shall be issued and no CAIR SO
2
Allowance
System Tracking account may
shall be established for the CAIR SO
2
an
885
affected
886
source, until the Agency and USEPA have received a complete
887
certificate of representation for a CAIR designated representative or
888
alternate designated representative pursuant tounder
40 CFR 96, subpart
BBB, for aan source and the CAIR SO
2
affected
889
unit at the source.
890
4)
For all CAIR SO
2
affected
891
units that commenced operation before July 1,
2008, the owner or operator of thesuch unit must submit a CAIR SO
2
892
893
permit application meeting the requirements of this Section 225.320 on or
894
before July 1, 2008.
895
5)
For CAIR SO
2
affected
896
units and that commence operation on or after July
897
1, 2008, and that are and are not subject to Section 39.5 of the Act, the
898
owner or operator of such units must submit applications for construction
899
and operating permits pursuant to the requirements of Sections 39 and
39.5 of the Act, as applicable, and 35 Ill. Adm. Code 201 and thesuch
900
901
applications must specify that they are applying for CAIR SO
2
permits,
902
and must address the CAIR SO
2
permit application requirements of this
Section
225.320
903
.
904
905
b)
Permit applications:
906
1)
907
Duty to apply. The owner or operator of any source with one or more
CAIR SO
2
affected
units shallmust submit to the Agency a CAIR SO
2
908
permit application for the source covering each CAIR SO
2
affected
909
unit
910
pursuant tounder subsection (b)(2) of this Section by the applicable
911
deadline in subsection (a)(4) or (a)(5) of this Section. The owner or
operator of any source with one or more CAIR SO
2
affected
912
units
913
shallmust reapply for a CAIR SO
2
permit for the source as required by this
914
Subpart, 35 Ill. Adm. Code 201, and, as applicable, Sections 39 and 39.5
915
of the Act.
916
21
2)
917
Information requirements for CAIR SO
2
permit applications. A complete
918
CAIR SO
2
permit application shallmust include the following elements
919
concerning the source for which the application is submitted:
920
A)
921
Identification of the source, including plant name. The ORIS
922
(Office of Regulatory Information Systems) or facility code
923
assigned to the source by the Energy Information Administration
924
shallmust also be included, if applicable;
925
B)
Identification of each CAIR SO
2
affected
926
unit at the source; and
927
C)
The compliance requirements applicable to each CAIR
928
SO
2
affected
unit as set forth in Section 225.310 of this Subpart
929
.
930
3)
931
An application for a CAIR SO
2
permit willshall be treated as a
modification of the CAIR SO
2
affected
932
source’s existing federally
enforceable permit, if such a permit has been issued for that CAIR
933
SO
2
affected
934
source, and willshall be subject to the same procedural
935
requirements. When the Agency issues a CAIR SO
2
permit pursuant to the
requirements of this Section
225.320
936
, it willshall be incorporated into and
become part of that CAIR SO
2
affected
937
source’s existing federally
enforceable permit.
938
939
c)
Permit content. Each CAIR permit is deemed to incorporate automatically the
940
definitions and terms pursuant to Section 225.120 and, upon recordation of
941
USEPA under 40 CFR 96, Subparts FFF and GGG as incorporated by reference in
942
Section 225.140, every allocation, transfer, or deduction of a CAIR SO
2
943
allowance to or from the compliance account of the CAIR SO
2
source covered by
944
the permit.
945
946
Section 225.325
947
Trading Program
948
a)
949
The CAIR SO
2
Trading Program is administered by USEPA. CAIR SO
2
allowances are issued as described by the definition for allocate in 40 CFR
950
96.220, as incorporated by reference in Section 225.140determined by USEPA
951
952
pursuant to the Acid Rain Program, Title IV of the CAA, 42 U.S.C. § 7651. The
amount of such
CAIR SO
2
allowances to be credited to a CAIR SO
2
an affected
953
source’s CAIR SO
2
Allowance Tracking System account for a CAIR SO
2
an
954
affected
unit willshall be determined in accordance with 40 CFR 96.253, as
955
incorporated by reference in Section 225.140by USEPA
956
.
957
b)
958
A CAIR SO
2
allowance is a limited authorization to emit SO
2
during the calendar
year for which the allowance is allocated or any calendar year thereafter pursuant
959
960
tounder
the CAIR SO
2
Trading Program as follows:
961
22
962
1)
For one CAIR SO
2
allowance allocated for a control period in a year
before 2010, one ton of SO
2
the retirement ratio shall be one ton of SO
2
to
963
964
1.0 CAIR SO
2
allowance, except as provided for in the compliance
deductions pursuant tounder
40 CFR §
965
96.254(b);
966
967
2)
For one CAIR SO
2
allowance allocated for a control period in 2010
through 2014, 0.5 ton of SO
2
the retirement ratio shall be one ton of SO
2
to
968
969
2.0 CAIR SO
2
allowances, except as provided for in the compliance
deductions pursuant tounder
40 CFR §
970
96.254(b); and
971
972
3)
For one CAIR SO
2
allowance allocated for a control period in 2015 or
later, 0.35 ton of SO
2
the retirement ration shall be one ton of SO
2
to 2.86
973
974
CAIR SO
2
allowances, except as provided for in the compliance
deductions pursuant tounder
40 CFR §
975
96.254(b).
976
977
SUBPART D: CAIR NO
x
ANNUAL TRADING PROGRAM
978
Section 225.400
979
Purpose
980
981
The purpose of this Subpart D is to control the annual emissions of nitrogen oxides (NO
x
) from
electric generating units (
EGU
982
) by determining allocations and implementing the CAIR NO
x
983
Annual Trading Program.
984
Section 225.405
985
Applicability
986
a)
Except as provided in subsection
s (b)(1), (b)(3), and (b)(4) of this Section:
987
988
1)
The following units are CAIR NO
x
units, and any source that includes one
989
or more such units is a CAIR NO
x
source subject to the requirements of
990
this Subpart D: any stationary, fossil-fuel-fired boiler or stationary, fossil-
991
fuel-fired combustion turbine serving at any time, since the later of
992
November 15, 1990 or the start-up the unit’s combustion chamber, a
993
generator with nameplate capacity of more than 25 MWe producing
994
electricity for sale.
995
996
2)
If a stationary boiler or stationary combustion turbine that pursuant to
997
subsection (a)(1) of this Section, is not a CAIR NO
x
unit begins to
998
combust fossil fuel or to serve a generator with nameplate capacity of
999
more than 25 MWe produc
t
ing electricity for sale, the unit will become a
1000
CAIR NO
x
unit as provided in subsection (a)(1) of this Section on the first
1001
date on which it both combusts fossil fuel and serves such generator.
1002
1003
b)
The units that meet the requirements set forth in subsections (b)(1), (b)(3), and
1004
(b)(4) of this Section will not be CAIR NO
x
units and units that meet the
1005
requirements of subsections (b)(2) and (b)(5) of this Section are CAIR NO
x
units:
1006
1007
23
1)
Any unit that is a CAIR NO
x
unit pursuant to subsection (a)(1) or (a)(2) of
1008
this Section and
:
1009
1010
A)
Qualif
ies as a cogeneration unit during the 12-month period
1011
starting on the date the unit first produces electricity and
1012
continuing to qualify as a cogeneration unit; and
1013
1014
B)
Does n
ot serve at any time, since the later of November 15, 1990
1015
or the start-up of the unit’s combustion chamber, a generator with
1016
nameplate capacity of more than 25 MWe supplying any calendar
1017
year more than one-third of the of the unit’s potential electric
1018
output capacity or 219,000 MWh, whichever is greater, to any
1019
utility power distribution for sale.
1020
1021
2)
If a unit qualifies as a cogeneration unit during the 12-month period
1022
starting on the date the unit first produces electricity and meets the
1023
requirements of subsection (b)(1) of this Section for at least one calendar
1024
year, but subsequently no longer meets all such requirements, the unit
1025
shall become a CAIR NO
x
unit starting on the earlier of January 1 after the
1026
first calendar year during which the unit no longer qualifies as a
1027
cogeneration unit or January 1 after the first calendar year during which
1028
the unit no longer meets the requirements of subsection (b)(1)(B) of this
1029
Section.
1030
1031
3)
Any unit that is a CAIR NO
x
unit pursuant to subsection (a)(1) or (a)(2) of
1032
this Section commencing operation before January 1, 1985 and
:
1033
1034
A)
Qualif
ies as a solid waste incineration unit; and
1035
1036
B)
With an average annual fuel consumption of non-fossil fuel for
1037
1985-1987 exceeding 80 percent (on a Btu basis) and an average
1038
annual fuel consumption of non-fossil fuel for any three
1039
consecutive calendar years after 1990 exceeding 80 percent (on a
1040
Btu basis).
1041
1042
4)
Any unit that is a CAIR NO
x
unit under subsection (a)(1) or (a)(2) of this
1043
Section commencing operation on or after January 1, 1985: and
1044
1045
A)
Qualif
ies as a solid waste incineration unit; and
1046
1047
B)
With an average annual fuel consumption of non-fossil fuel the
1048
first three years of operation exceeding 80 percent (on a Btu basis)
1049
and an average annual fuel consumption of non-fossil fuel for any
1050
three consecutive calendar years after 1990 exceeding 80 percent
1051
(on a Btu basis).
1052
1053
24
5)
If a unit qualifies as a solid waste incineration unit and meets the
1054
requirements of subsection (b)(3) or (b)(4) of this Section for at least three
1055
consecutive years, but subsequently no longer meets all such
1056
requirements, the unit shall become a CAIR NO
x
unit starting on the
1057
earlier of January 1 after the first three consecutive calendar years after
1058
1990 for which the unit has an average annual fuel consumption of fuel of
1059
20 percent or more.
1060
a)
A fossil fuel-fired stationary boiler, combustion turbine or combined cycle system
1061
is an electric generating unit if it serves a generator that has a nameplate capacity
1062
greater than 25 MWe and
produces electricity for sale and is not included in
1063
Appendix D of 35 Ill. Adm. Code Part 217. An electric generation unit is subject
1064
to the NO
x
Trading Program contained in this Subpart and is a CAIR NO
x
unit or
1065
affected unit for the purposes of this Subpart.
1066
1067
b)
Notwithstanding subsection (a) of this Section, an EGU shall not be an affected
1068
unit and is not subject to the NO
x
Trading Program contained in this Subpart if it
1069
meets the requirements of either subsection (b)(1)(A) or (b)(2)(A) of this Section,
1070
as follows:
1071
1072
1)
A unit that:
1073
1074
A)
Meets the definition of a cogeneration unit in Section 225.130 of
1075
this Part; and
1076
1077
i)
Qualifies as a cogeneration unit during the 12-month period
1078
starting on the date the unit first produces electricity and
1079
continues to qualify as a cogeneration unit; and
1080
1081
ii)
Does not serve at any time, since the later of November 15,
1082
1990, or the start-up of the unit’s combustion chamber, a
1083
generator with a nameplate capacity of more than 25 MWe,
1084
and which supplies in any calendar year more than one-
1085
third of the unit’s potential electrical output capacity or
1086
219,000 MWh, whichever is greater, to a utility power
1087
distribution system for sale.
1088
1089
B)
If a unit qualifies as a cogeneration unit during the 12-month
1090
period starting on the date the unit first produces electricity but
1091
subsequently no longer qualifies as a cogeneration unit, the unit
1092
shall be subject to subsection (a) of this Section starting on the
1093
January 1 after which the unit first no longer qualifies as a
1094
cogeneration unit.
1095
1096
2)
A unit that:
1097
1098
A)
Qualifies as a solid waste incineration unit as defined by Section
1099
25
129(g) of the CAA [42 U.S.C. § 7429(g)]; and
1100
1101
i)
Commences operation on or after January 1, 1985; and
1102
1103
ii)
Has an average annual fuel consumption of non-fossil fuel
1104
for the first three calendar years of operation exceeding 80
1105
percent (on a Btu basis) and an average annual fuel
1106
consumption of non-fossil fuel for any three consecutive
1107
calendar years after 1990 exceeding 80 percent (on a Btu
1108
basis).
1109
1110
B)
If a unit qualifies as a solid waste incineration unit and meets the
1111
requirements of subsection (b)(2)(A) of this Section for at least
1112
three consecutive calendar years, but subsequently no longer meets
1113
all such requirements, the unit shall become an affected unit
1114
starting on the January 1 after which the unit has an average annual
1115
fuel consumption of fossil fuel of 20 percent or more.
1116
1117
Section 225.410
1118
Compliance Requirements
1119
a)
The owner or operator of a CAIR NO
x
an affected
1120
unit shallmust comply with the
requirements of the CAIR NO
x
Annual Trading Program for Illinois a
1121
sre set forth
in this Subpart D
1122
and 40 CFR 96, subpart AA (NO
x
Annual Trading Program
1123
General Provisions, excluding 40 CFR §§ 96.104, 96.105(b)(2), and 96.106); 40
1124
CFR 96, subpart BB (CAIR Designated Representative for CAIR NO
x
Sources);
1125
40 CFR 96, subpart FF (CAIR NO
x
Allowance Tracking System); 40 CFR 96,
1126
subpart GG (CAIR NO
x
Allowance Transfers); and 40 CFR 96, subpart HH
(Monitoring and Reporting); as incorporated by reference in Section 225.140 of
1127
1128
this Part.
1129
1130
b)
Permit requirements:
1131
1)
The owner or operator of each source with one or more CAIR NO
x
affected
1132
1133
units at the source must apply for a permit issued by the Agency with
1134
federally enforceable conditions covering the CAIR NO
x
Annual Trading
1135
Program (“CAIR NO
x
permit”) that complies with the requirements of
1136
Section 225.420 of this Subpart
(Permit Requirements).
1137
2)
The owner or operator of each CAIR NO
x
affected
source and each CAIR
1138
NO
x
affected unit at the source must operate the CAIR NO
x
affected
1139
unit in
compliance with itssuch
1140
CAIR NO
x
permit.
1141
1142
c)
Monitoring requirements:
1143
1)
The owner or operator of each CAIR NO
x
affected
source and each CAIR
1144
1145
NO
x
affected unit at the source must comply with the monitoring
26
requirements of 40 CFR 96, subpart HH and Section 225.450 of this
1146
Subpart. The CAIR designated representative of each CAIR NO
x
affected
1147
1148
source and each CAIR NO
x
affected unit at the CAIR NO
x
affected source
must comply with those sections of the monitoring
, reporting and
1149
1150
recordkeeping
requirements of 40 CFR 96, subpart HH, applicable to a
1151
CAIR designated representative.
1152
2)
The compliance of each CAIR NO
x
affected
1153
sourceunit with the NO
x
1154
emissions limitation pursuant tounder
subsection (d) of this Section
1155
willshall
be determined by the emissions measurements recorded and
1156
reported in accordance with 40 CFR 96, subpart HH.
1157
1158
d)
Emission requirements:
1159
1)
1160
By the allowance transfer deadline, March 1, 2010, and by March 1 of
each subsequent year, the allowance transfer deadline, the owner or
1161
operatorCAIR designated representative of each CAIR NO
x
affected
1162
source and each CAIR NO
x
affected
1163
unit at the source shallmust hold
CAIR NO
x
allowances available for compliance deductions pursuant
1164
tounder 40 CFR §
96.154(a) in the CAIR NO
x
affected
1165
source’s CAIR NO
x
compliance account. The allowance transfer deadline means by midnight
1166
of March 1 (if it is a business day) or midnight of the first business day
1167
1168
thereafter. The number of allowances held mayshall not be less than the
tons of NO
x
emissions for the control period from all CAIR NO
x
affected
1169
1170
units at the source, rounded to the nearest whole ton, as determined in
accordance with 40 CFR 96, subpart HH, plus any number of allowances
1171
necessary to account for actual utilization, including, but not limited to
1172
testing, start-up, malfunction, and shut down
1173
.
1174
2)
1175
Each ton of NO
x
emitted in excess of the number of CAIR NO
x
allowances held by the owner or operator for each CAIR NO
x
affected
1176
unit
in its CAIR NO
x
compliance account for each day of the applicable
1177
control period willshall
constitute a separate violation of this Subpart D
,
1178
and
the Act, and the CAA
1179
.
1180
3)
Each CAIR NO
x
affected
unit willshall be subject to the monitoring and
1181
compliance
requirements of subsection
1182
s (c)(1) and (d)(1) of this Section
1183
starting on the later of January 1, 2009, or the deadline for meeting the
unit’s monitoring certification requirements pursuant tounder
40 CFR §
1184
1185
96.170(b)(1) or (b)(2) and for each control period thereafter.
1186
1187
4)
CAIR NO
x
allowances shallmust be held in, deducted from, or transferred
1188
among allowance accounts in accordance with this Subpart and 40 CFR
1189
96, subparts FF and GG.
1190
5)
1191
In order to comply with the requirements of subsection (d)(1) of this
27
Section, a CAIR NO
x
allowance may not be deductedutilized
1192
for
1193
compliance according to subsection (d)(1) of this Section, for a control
period in a year beforeprior to
1194
the calendar year for which the allowance is
1195
allocated.
1196
6)
A CAIR NO
x
allowance allocated by the Agency or USEPA pursuant
1197
1198
tounder the CAIR NO
x
Annual Trading Program is a limited authorization
1199
to emit one ton of NO
x
in accordance with the CAIR NO
x
Trading
1200
Program. No provision of the CAIR NO
x
Trading Program, the CAIR
1201
NO
x
permit application, the CAIR NO
x
permit, or a retired unit exemption
1202
pursuant tounder 40 CFR § 96.105, and no provision of law, willshall be
1203
construed to limit the authority of the United States or the State to
1204
terminate or limit this authorization.
1205
7)
A CAIR NO
x
allowance allocated by the Agency or USEPA pursuant
1206
1207
tounder the CAIR NO
x
Annual Trading Program does not constitute a
1208
property right.
1209
8)
1210
Upon recordation by USEPA pursuant tounder 40 CFR 96, subpart FF or
40 CFR 96, subpart GG, every allocation, transfer, or deduction of a CAIR
1211
1212
NO
x
an allowance to or from a CAIR NO
x
source compliance account is
1213
deemed to amend automatically, and become a part of, any CAIR NO
x
1214
permit of the CAIR NO
x
affected source. This automatic amendment of
1215
the CAIR NO
x
permit willshall be deemed an operation of law and will
1216
not require any further review.
1217
e)
1218
Recordkeeping and reporting requirements:
1219
1)
Unless otherwise provided, the owner or operator of the CAIR
1220
NO
x
affected
source and each CAIR NO
x
affected
1221
unit at the source
1222
shallmust
keep on site at the source each of the documents listed in
1223
subsections (e)(1)(A) through (e)(1)(E) of this Section for a period of five
1224
years from the date the document is created. This period may be extended
1225
for cause, at any time prior to the end of five years, in writing by the
1226
Agency or USEPA.
1227
A)
1228
The certificate of representation for the CAIR designated
representative for the source and each CAIR NO
x
affected
1229
unit at
1230
the source, all documents that demonstrate the truth of the
1231
statements in the certificate of representation, provided that the
1232
certificate and documents must be retained on site at the source
1233
beyond such five-year period until thesuch documents are
1234
superseded because of the submission of a new certificate of
1235
representation pursuant tounder
40 CFR § 96.113, changing the
1236
CAIR designated representative.
1237
28
B)
1238
All emissions monitoring information, in accordance with 40 CFR
1239
96, subpart HH.
1240
C)
1241
Copies of all reports, compliance certifications, and other
1242
submissions and all records made or required pursuant tounder the
1243
CAIR NO
x
Annual Trading Program or documents necessary to
1244
demonstrate compliance with the requirements of the CAIR NO
x
Annual Trading Program or with the requirements of this Subpart
1245
D
1246
.
1247
D)
1248
Copies of all documents used to complete a CAIR NO
x
permit
application and any other submission or documents used to
1249
1250
demonstrate compliance pursuant to under the CAIR NO
x
Annual
1251
Trading Program.
1252
E)
1253
Copies of all records and logs for gross electrical output and useful
1254
thermal energy required by Section 225.450 of this Subpart.
1255
2)
The CAIR designated representative of an a CAIR NO
x
affected
1256
source and
1257
each CAIR NO
x
affected unit at the source must submit to the Agency and
USEPA the reports and compliance certifications required pursuant
1258
tounder the CAIR NO
x
Annual Trading Program, including those pursuant
1259
1260
tounder 40 CFR 96, subpart HH.
1261
1262
f)
Liability:
1263
1)
No revision of a permit for a CAIR NO
x
an affected
1264
unit mayshall excuse
1265
any violation of the requirements of this Subpart D or the requirements of
1266
the CAIR NO
x
Annual Trading Program.
1267
2)
Each CAIR NO
x
affected
source and each CAIR NO
x
affected
1268
unit
1269
shallmust meet the requirements of the CAIR NO
x
Annual Trading
1270
Program.
1271
3)
Any provision of the CAIR NO
x
Annual Trading Program that applies to a
1272
CAIR NO
x
an affected
1273
source (including any provision applicable to the
CAIR designated representative of a CAIR NO
x
an affected
1274
source)
willshall also apply to the owner and operator of thesuch
CAIR
1275
NO
x
affected
source and to the owner and operator of each CAIR
1276
NO
x
affected
1277
unit at the source.
1278
4)
Any provision of the CAIR NO
x
Annual Trading Program that applies to a
1279
CAIR NO
x
an affected
1280
unit (including any provision applicable to the
CAIR designated representative of a CAIR NO
x
an affected
unit) willshall
1281
also apply to the owner and operator of thesuch
CAIR NO
x
affected
1282
unit.
Except with regard to the requirements applicable to affected units
with a
1283
29
common stack under 40 CFR 96, subpart HH, the owner, the operator,
1284
and the CAIR designated representative or alternate designated
1285
representative of an affected unit shall not be liable for any violation by
1286
any other affected unit of which they
are not an owner or operator or the
1287
CAIR designated representative.
1288
1289
5)
The CAIR designated representative of a CAIR NO
x
an affected
1290
unit that
1291
has excess emissions in any control period shallmust surrender the
allowances as required for deduction pursuant tounder
40 CFR §
1292
1293
96.154(d)(1).
1294
6)
1295
The owner or operator of a CAIR NO
x
an affected unit that has excess NO
x
1296
emissions in any control period shallmust pay any fine, penalty, or
assessment or comply with any other remedy imposed pursuant tounder
1297
1298
the Act and 40 CFR §
96.154(d)(2).
1299
g)
1300
Effect on other authorities. No provision of the CAIR NO
x
Annual Trading
1301
Program, a CAIR NO
x
permit application, a CAIR NO
x
permit, or a retired unit
exemption pursuant tounder 40 CFR §
1302
96.105 willshall be construed as exempting
1303
or excluding the owner and operator and, to the extent applicable, the CAIR
designated representative of a CAIR NO
x
an affected
source or a CAIR NO
x
an
1304
affected unit, from compliance with any other regulation promulgated pursuant to
1305
1306
under the CAA, the Act, any State regulation or permit, or a federally enforceable
1307
permit.
1308
Section 225.415
1309
Appeal Procedures
1310
1311
The appeal procedures for decisions of USEPA pursuant tounder the CAIR NO
x
Annual Trading
1312
Program are set forth in 40 CFR 78, as incorporated by reference in Section 225.140 of this Part.
1313
Section 225.420
1314
Permit Requirements
1315
1316
a)
Permit requirements:
1317
1)
1318
The owner or operator of each source with a CAIR NO
x
an affected unit is
required to submit
:
1319
1320
1321
A)
aA complete permit application addressing all applicable CAIR
1322
NO
x
Annual Trading Program requirements for a permit meeting
the requirements of this Section 225.420
, applicable to each CAIR
1323
NO
x
affected
unit at the source. Each CAIR NO
x
permit shallmust
1324
1325
contain elements required for a complete CAIR NO
x
permit
1326
application pursuant tounder subsection (b)(2) of this Section.
1327
B)
Any supplemental information that the Agency determines
1328
necessary in order to review a CAIR permit application and issue
1329
30
any CAIR permit.
1330
1331
2)
Each CAIR NO
x
permit will be issued pursuant to Section 39 and 39.5 of
1332
1333
the Act,
shallmust contain federally enforceable conditions addressing all
1334
applicable CAIR NO
x
Annual Trading Program requirements and
1335
shallmust be a complete and segregable portion of the source’s entire
1336
permit pursuant tounder subsection (a)(1) of this Section.
1337
1338
3)
No CAIR NO
x
permit mayshall be issued, and no CAIR NO
x
compliance
account mayshall
be established for a CAIR NO
x
an affected
1339
source, until
1340
the Agency and USEPA have received a complete certificate of
1341
representation for a CAIR designated representative pursuant tounder 40
CFR 96, subpart BB, for the CAIR NO
x
affected source and the CAIR
1342
NO
x
affected
1343
unit at the source.
1344
4)
For all CAIR NO
x
affected
1345
units that commenced operation before July 1,
2007, the owner or operator of thesuch unit must submit a CAIR NO
x
1346
1347
permit application meeting the requirements of this Section 225.420 on or
1348
before July 1, 2007.
1349
5)
For all CAIR NO
x
affected
1350
units and that commence operation on or after
July 1, 20078
1351
, the owner or operator of thesesuch units must submit
1352
applications for construction and operating permits pursuant to the
1353
requirements of Sections 39 and 39.5 of the Act, as applicable, and 35 Ill.
1354
Adm. Code 201 and thesuch applications must specify that they are
1355
applying for CAIR NO
x
permits, and must address the CAIR NO
x
permit
application requirements of this Section 225.420
1356
.
1357
1358
b)
Permit applications:
1359
1)
1360
Duty to apply. The owner or operator of any source with one or more
CAIR NO
x
affected
units shallmust submit to the Agency a CAIR NO
x
1361
permit application for the source covering each CAIR NO
x
affected
1362
unit
1363
pursuant tounder
subsection (b)(2) of this Section by the applicable
1364
deadline in subsection (a)(4) or (a)(5) of this Section. The owner or
operator of any source with one or more CAIR NO
x
affected
1365
units
1366
shallmust
reapply for a CAIR NO
x
permit for the source as required by
1367
this Subpart, 35 Ill. Adm. Code 201, and, as applicable, Sections 39 and
1368
39.5 of the Act.
1369
2)
1370
Information requirements for CAIR NO
x
permit applications. A complete
1371
CAIR NO
x
permit application shallmust include the following elements
1372
concerning the source for which the application is submitted:
1373
A)
1374
Identification of the source, including plant name. The ORIS
1375
(Office of Regulatory Information Systems) or facility code
 
31
1376
assigned to the source by the Energy Information Administration
1377
shallmust also be included, if applicable;
1378
B)
Identification of each CAIR NO
x
affected
1379
unit at the source; and
1380
C)
The compliance requirements applicable to each CAIR
1381
1382
NO
x
affected unit as set forth in Section 225.410 of this Subpart.
1383
3)
1384
An application for a CAIR NO
x
permit willshall be treated as a
modification of the CAIR NO
x
affected
1385
source’s existing federally
1386
enforceable permit, if such a permit has been issued for that source, and
1387
willshall be subject to the same procedural requirements. When the
1388
Agency issues a CAIR NO
x
permit pursuant to the requirements of this
Section
225.420
1389
, it willshall be incorporated into and become part of that
source’s existing federally enforceable permit.
1390
1391
c)
Permit content. Each CAIR permit is deemed to incorporate automatically the
1392
definitions and terms pursuant to Section 225.120 and, upon recordation of
1393
USEPA under 40 CFR 96, Subparts FF and GG as incorporated by reference in
1394
Section 225.140, every allocation, transfer, or deduction of a CAIR NO
x
1395
allowance to or from the compliance account of the CAIR NO
x
source covered by
1396
the permit.
1397
1398
Section 225.425
1399
Annual Trading Budget
1400
1401
The CAIR NO
x
Annual Trading budget available for allowance allocations for each control
1402
period willshall be determined as follows:
1403
a)
1404
The total base CAIR NO
x
Annual Trading budget is 76,230 tons per control
1405
period for the years 2009 through 2014, subject to a reduction for two set-asides,
1406
the New Unit Set-Aside (NUSA) and the Clean Air Set-Aside (CASA). Five
percent of the budget willshall
be allocated to the NUSA and 25 percent willshall
1407
1408
be allocated to the CASA, resulting in a CAIR NO
x
Annual Trading budget of
1409
53,361 tons available for allocation per control period pursuant to Section
1410
225.440 of this
Subpart. The requirements of the NUSA are set forth in Section
1411
225.445 of this Subpart, and the requirements of the CASA are set forth in
Sections 225.455 through 225.470 of this Subpart
1412
.
1413
b)
1414
The total base CAIR NO
x
Annual Trading budget is 63,525 tons per control
1415
period for the year 2015 and thereafter, subject to a reduction for two set-asides,
1416
the NUSA and the CASA. Five percent of the budget willshall be allocated to the
1417
NUSA and 25 percent willshall
be allocated to the CASA, resulting in a CAIR
1418
NO
x
Annual Trading budget of 44,468 tons available for allocation per control
period pursuant to Section 225.440 of this Subpart
1419
.
1420
c)
1421
If USEPA adjusts the total base CAIR NO
x
Annual Trading budget for any
32
1422
reason, the Agency willshall adjust the base CAIR NO
x
Annual Trading budget
1423
and the CAIR NO
x
Annual Trading budget available for allocation, accordingly.
1424
Section 225.430
1425
Timing for Annual Allocations
1426
a)
No later thanBy July 31, 2007October 31, 2006
1427
, the Agency willshall submit to
1428
USEPA the CAIR NO
x
allowance allocations, in accordance with Sections
1429
225.435 and 225.440 of this Subpart, for the 2009, 2010, and 2011 control
1430
periods.
1431
b)
By October 31, 200
1432
89, and October 31 of each year thereafter, the Agency
1433
willshall submit to USEPA the CAIR NO
x
allowance allocations in accordance
with Sections 225.435 and 225.440 of this Subpart
1434
, for the control period
fourthree
years after the year of the applicable deadline for submission pursuant
1435
tounder
this Section
225.430. For example, on October 31, 200
1436
89, the Agency
1437
willshall submit to USEPA the allocations for the 2012 control period.
1438
c)
The Agency willshall allocate allowances from the NUSA to CAIR NO
x
affected
1439
1440
units that commence commercial operation on or after January 1, 2006. The
Agency willshall report these allocations to USEPA by October 31February 15
1441
ofafter the applicable control period. For example, on October 31February 15
1442
,
1443
20092010, the Agency willshall submit to USEPA the allocations from the NUSA
1444
for the 2009 control period.
1445
1446
d)
The Agency willshall allocate allowances from the CASA to energy efficiency,
1447
renewable energy, and clean technology projects pursuant to the criteria in
Sections 225.455 through 225.470 of this Subpart
1448
. The Agency willshall report
1449
these allocations to USEPA by October 1December 1 of each year. For example,
on October 1, 2009December, 1, 2010
1450
, the Agency willshall submit to USEPA the
1451
allocations from the CASA for the 20092010 control period, based on reductions
made in the 20082009
1452
control period.
1453
Section 225.435
1454
Methodology for Calculating Annual Allocations
1455
The Agency willshall calculate converted gross electrical output (CGO), in MWh, for each CAIR
1456
NO
x
affected
1457
unit that has operated during at least one calendar year prior to the calendar year in
which the Agency reports the allocations to USEPA
1458
as follows:
1459
a)
For control periods 2009, 2010, and 2011, the owner or operator of
the unit’s
1460
must submit in writing to the Agency by June 1, 2007, a statement that either
1461
gross electrical output data or heat input data is to be used to calculate the unit’s
1462
converted gross electrical output (CGO)
. The data shall be used to calculate
1463
converted gross electrical output pursuant to either subsection (a)(1) or (a)(2) of
1464
1465
this Section
shall be:
1466
1467
1)
Gross electrical output. If the unit has four or five control periods of data,
33
1468
then the gross electrical output (GO) willshall be the average of the unit’s
1469
three highest gross electrical outputs from the 2001, 2002, 2003, 2004, or
1470
2005 control periods. If the unit has three or fewer control periods of
1471
gross electrical output data, the gross electrical output willshall
be the
1472
average of those control periods. If the unit does not have gross electrical
1473
output for the 2004 and 2005 control periods, the gross electrical output
1474
willshall
be the gross electrical output data from the 2005 control period.
If the unit does not have gross electrical output, heat input shall be used
1475
pursuant to subsection (a)(2) of this Section.
1476
If a generator is served by
1477
two or more units, the gross electrical output of the generator willshall
be
1478
attributed to each unit in proportion to the unit’s share of the total control
period heat input of thesesuch
1479
units for the control period. The unit’s
1480
converted gross electrical output (CGO) willshall be calculated as follows:
1481
A)
1482
If the unit is coal-fired:
1483
CGO (in MWh) = GO
×
MWh
×
1.0;
1484
B)
1485
If the unit is oil-fired:
CGO (in MWh) = GO
×
MWh
×
0.6; or
1486
1487
C)
1488
If the unit is neither coal-fired nor oil-fired:
CGO (in MWh) = GO
×
MWh
×
0.4.
1489
1490
2)
If gross electrical output data is not provided to the Agency,
1491
Hheat input
(HI) shall be used
1492
. If the unit has four or five control periods of data, the
average of the unit’s three highest heat input
1493
’s from the 2001, 2002, 2003,
1494
2004 or 2005 control period, willshall be used. If the unit has heat inputs
1495
from the 2003, 2004, or 2005 control period, the heat input willshall be the
1496
average of those years. If the unit does not have heat input from the 2004
1497
and 2005 control periods, the heat input from the 2005 control period
willshall
be used. The unit’s converted gross electrical output (CGO)
1498
1499
willshall be calculated as follows:
1500
A)
1501
If the unit is coal-fired:
1502
CGO (in MWh) = HI (in mmBtu)
×
0.0967;
1503
B)
1504
If the unit is oil-fired:
1505
CGO (in MWh) = HI (in mmBtu)
×
0.0580; or
1506
C)
1507
If the unit is neither coal-fired nor oil-fired:
1508
CGO (in MWh) = HI (in mmBtu)
×
0.0387.
1509
b)
For control periods 2012 and 2013, the owner or operator of the unit must submit
1510
in writing to the Agency by June 1, 2008, a statement that either gross electrical
1511
output data or heat input data be used to calculate the unit’s converted gross
1512
electrical output. The unit’s converted gross electrical output shall be calculated
1513
34
pursuant to either subsection (b)(1) or (b)(2) of this Section:
1514
1515
1)
Gross electrical output. The average of the unit’s two most recent years of
1516
control period gross electrical output, if available; otherwise it will be the
1517
unit’s most recent control period’s gross electrical output. If a generator is
1518
served by two or more units, the gross electrical output of the generator
1519
shall be attributed to each unit in proportion to the unit’s share of the total
1520
control period heat input of such units for the control period. The unit’s
1521
converted gross electrical output shall be calculated as follows:
1522
1523
A)
If the unit is coal-fired:
1524
CGO (in MWh) = GO
×
MWh
×
1.0;
1525
1526
B)
If the unit is oil-fired:
1527
CGO (in MWh) = GO
×
MWh
×
0.6;
1528
1529
C)
If the unit is neither coal-fired nor oil-fired:
1530
CGO (in MWh) = GO
×
MWh
×
0.4.
1531
1532
2)
Heat input. The average of the unit’s two most recent years of control
1533
period heat input; otherwise the unit’s most recent control period’s heat
1534
input, e.g. for the 2012 control period the average of the unit’s heat input
1535
from the 2006 and 2007 control periods. If the unit does not have heat
1536
input from the 2006 and 2007 control periods, the heat input from the
1537
2007 control period shall be used. The unit’s converted gross electrical
1538
output shall be calculated as follows:
1539
1540
A)
If the unit is coal-fired:
1541
CGO (in MWh) = HI (in mmBtu)
×
0.0967;
1542
1543
B)
If the unit is oil-fired:
1544
CGO (in MWh) = HI (in mmBtu)
×
0.0580; or
1545
1546
C)
If the unit is neither coal-fired nor oil-fired:
1547
CGO (in MWh) = HI (in mmBtu)
×
0.0387.
1548
1549
1550
cb)
For control period 20142012 and thereafter, the unit’s gross electrical output
1551
willshall be the average of the unit’s two most recent years of control period gross
1552
electrical output, if available; otherwise it will be
the unit’s most recent control
1553
period’s gross electrical output. If a generator is served by two or more units, the
1554
gross electrical output of the generator willshall
be attributed to each unit in
proportion to the unit’s share of the total control period heat input of thesesuch
1555
units for the control period. The unit’s converted gross electrical output willshall
1556
1557
be calculated as follows:
1558
1)
1559
If the unit is coal-fired:
35
1560
CGO (in MWh) = GO
×
1.0;
1561
2)
1562
If the unit is oil-fired:
1563
CGO (in MWh) = GO
×0.6;
or
1564
3)
1565
If the unit is neither coal-fired nor oil-fired:
1566
CGO (in MWh) = GO
×
0.4.
1567
dc)
1568
For a unit that is a combustion turbine or boiler and has equipment used to
1569
produce electricity and useful thermal energy for industrial, commercial, heating,
or cooling purposes through the sequential use of energy, the Agency willshall
1570
1571
add the converted gross electrical output calculated for electricity pursuant to
subsections (a), (b),
1572
or (cb) of this Section to the converted useful thermal energy
1573
(CUTE) to determine the total converted gross electrical output for the unit
1574
(TCGO). The Agency willshall
determine the converted useful thermal energy by
1575
using the average of the unit’s control period useful thermal energy for the prior
1576
two control periods, if available, otherwise the unit’s control period useful
1577
thermal output for the prior year willshall
be used. The converted useful thermal
1578
energy willshall be determined using the following equations:
1579
1)
1580
If the unit is coal-fired:
1581
CUTE (in MWh) = UTE (in mmBtu)
×
0.2930;
1582
2)
1583
If the unit is oil-fired:
1584
CUTE (in MWh) = UTE (in mmBtu)
×
0.1758; or
1585
3)
1586
If the unit is neither coal-fired nor oil-fired:
1587
CUTE (in MWh) = UTE (in mmBtu)
×
0.1172.
1588
ed
)
The CAIR NO
x
affected
1589
unit’s converted gross electrical output and converted
useful thermal energy in subsections (a)(1), (b)(1)
, (c) and (dc
1590
) of this Section for
1591
each control period willshall be based on the best available data reported or
available to the Agency for the CAIR NO
x
affected
1592
unit pursuant to the provisions
1593
of Section 225.450 of this Subpart
.
1594
fe
)
The CAIR NO
x
affected
unit’s heat input in subsection
1595
s (a)(2) and (b)(2) of this
1596
Section for each control period willshall be determined in accordance with 40
CFR
1597
75, as incorporated by reference in Section 225.140 of this Part.
1598
Section 225.440
1599
Annual Allocations
1600
a)
1601
For the 2009 control period, and each control period thereafter, the Agency
willshall allocate CAIR NO
x
allowances to all CAIR NO
x
affected
1602
units in Illinois
1603
for which the Agency has calculated the total converted gross electrical output
1604
pursuant to Section 225.435 of this Subpart
, a total amount of CAIR NO
x
1605
allowances equal to tons of NO
x
emissions in the CAIR NO
x
Annual Trading
36
budget available for allocation as determined in Section 225.
425525 of this
1606
1607
Subpart and allocated pursuant to this Section 225.440 of this Subpart.
1608
b)
The Agency willshall
allocate CAIR NO
x
allowances to each CAIR NO
x
affected
1609
1610
unit on a pro-rata basis using the unit’s total converted gross electrical output
1611
calculated pursuant to Section 225.435 of this Subpart
. If there are insufficient
allowances to allocate whole allowances
1612
pro-rata, thesesuch unallocated
1613
allowances willshall be retained by the Agency and willshall be available for
1614
allocation in later control periods.
1615
Section 225.445
1616
New Unit Set-Aside (NUSA)
1617
1618
For the 2009 control period and each control period thereafter, the Agency willshall allocate
1619
CAIR NO
x
allowances from the NUSA to CAIR NO
x
affected units that commenced commercial
1620
operation on or after January 1, 2006, and do not yet have an allocation for the particular control
1621
period pursuant to Section 225.440 of this Subpart
, in accordance with the following procedures:
1622
a)
1623
Beginning with the 2009 control period and each control period thereafter, the
1624
Agency willshall establish a separate NUSA for each control period. Each NUSA
1625
willshall be allocated CAIR NO
x
allowances equal to 5 percent of the amount of
1626
tons of NO
x
emissions in the base CAIR NO
x
Annual Trading budget in Section
1627
225.425 of this Subpart.
1628
b)
The CAIR designated representative of such
a new CAIR NO
x
an affected
1629
unit
1630
may submit to the Agency a request, in a format specified by the Agency, to be
1631
allocated CAIR NO
x
allowances from the NUSA starting with the first control
1632
period after the control period in which the new unit commences commercial
1633
operation and until the first control period for which the unit may use CAIR NO
x
allowances allocated to the unit pursuant tounder
1634
Section 225.440 of this Subpart.
1635
The NUSA allowance allocation request may only be submitted after a new unit
has operated during one control period, and no later than March 1January
15
1636
1637
ofafter the control period for which allowances from the NUSA are being
1638
requested.
1639
c)
1640
In a NUSA allowance allocation request pursuant tounder subsection (b) of this
1641
Section, the CAIR designated representative must provide in its request
1642
information for gross electrical output and useful thermal energy, if any, for the
new CAIR NO
x
affected
1643
unit for that control period.
1644
d)
The Agency willshall
allocate allowances from the NUSA to a new CAIR
1645
NO
x
affected
1646
unit using the following procedures:
1647
1)
For each new CAIR NO
x
affected unit that has operated in at least one
1648
control period
1649
, the unit’s gross electrical output for the most recent control
1650
period willshall
be used to calculate the unit’s gross electrical output. If a
1651
generator is served by two or more units, the gross electrical output of the
37
1652
generator willshall be attributed to each unit in proportion to the unit’s
share of the total control period heat input of thesesuch
1653
units for the
control period. The new unit’s converted gross electrical output willshall
1654
1655
be calculated as follows:
1656
A)
1657
If the unit is coal-fired:
1658
CGO (in MWh) = GO
×
1.0;
1659
B)
1660
If the unit is oil-fired:
1661
CGO (in MWh) = GO
×
0.6; or
1662
C)
1663
If the unit is neither coal-fired nor oil-fired:
1664
CGO (in MWh) = GO
×
0.4.
1665
2)
1666
If the unit is a combustion turbine or boiler and has equipment used to
1667
produce electricity and useful thermal energy for industrial, commercial,
1668
heating, or cooling purposes through the sequential use of energy, the
1669
Agency willshall add the converted gross electrical output calculated for
electricity pursuant to subsection (dc
1670
)(1) of this Section to the converted
1671
useful thermal energy to determine the total converted gross electrical
1672
output for the unit. The Agency willshall determine the converted useful
1673
thermal energy using the unit’s useful thermal energy for the most recent
1674
control period. The converted useful thermal energy willshall be
1675
determined using the following equations:
1676
A)
1677
If the unit is coal-fired:
1678
CUTE (in MWh) = UTE (in mmBtu)
×
0.2930;
1679
B)
1680
If the unit is oil-fired:
1681
CUTE (in MWh) = UTE (in mmBtu)
×
0.1758; or
1682
C)
1683
If the unit is neither coal-fired nor oil-fired:
1684
CUTE (in MWh) = UTE (in mmBtu)
×
0.1172.
1685
3)
1686
The gross electrical output and useful thermal energy in subsections (d)(1)
1687
and (d)(2) of this Section for each control period willshall
be based on the
best available data reported or available to the Agency for the CAIR
1688
NO
x
affected
unit pursuant to the provisions of Section 225.450 of this
1689
1690
Subpart
.
1691
1692
4)
The Agency willshall determine a unit’s un-prorated allocation (
UA
y
)
1693
using the unit’s converted gross electrical output (CGO) plus the unit’s
1694
converted useful thermal energy, if any, calculated in subsections (d)(1)
1695
and (d)(2) of this Section, converted to approximate NO
x
tons (the unit’s
1696
un-prorated allocation), as follows:
1697
38
2000lbs / ton
TCGO * (1.0lbs / MWh)
UA
y
1698
y
=
1699
1700
Where:
1701
UA
y
=
1702
un-prorated allocation to a new
1703
CAIR NO
x
affected unit.
TCGO
y
=
1704
total converted gross electrical output for a
new CAIR NO
x
affected
1705
unit.
1706
1707
5)
The Agency willshall
allocate CAIR NO
x
allowances from the NUSA to
1708
new CAIR NO
x
affected units as follows:
1709
A)
1710
If the NUSA for the control period for which CAIR NO
x
1711
allowances are requested has a number of allowances greater than
1712
or equal to the total un-prorated allocations for all new units
1713
requesting allowances, the Agency willshall
allocate the number of
1714
allowances using the un-prorated allocation determined for that
unit pursuant to subsection (d)(4) of this Section. If there are
1715
insufficient allowances to allocate whole allowances, such
1716
unallocated allowances shall be retained by the Agency and shall
1717
be available for allocation in a later control period.
1718
1719
B)
1720
If the NUSA for the control period for which the allowances are
1721
requested has a number of CAIR NO
x
allowances less than the
total un-prorated allocation to all new CAIR NO
x
affected
1722
units
1723
requesting allocations, the Agency willshall
allocate the available
allowances for new CAIR NO
x
affected
1724
units on a pro-rata basis,
1725
using the un-prorated allocation determined for that unit pursuant
1726
to subsection (d)(4) of this Section. If there are insufficient
1727
allowances to allocate whole allowances, thesuch
unallocated
1728
allowances willshall
be retained by the Agency and willshall be
1729
available for allocation in a later control period.
1730
C)
1731
If the gross electrical output or useful thermal energy reported to
1732
the Agency in subsection (d) of this Section is later determined to
1733
be greater than the unit’s actual gross electrical output or useful
1734
thermal energy for the applicable control period, the Agency
1735
willshall
reduce the unit’s allocation from the NUSA for the
1736
current control period to account for the excess allowances
1737
allocated in the prior control period or periods.
1738
e)
The Agency willshall
review each NUSA allowance allocation request pursuant
1739
1740
tounder
subsection (b) of this Section. The Agency willshall accept a NUSA
1741
allowance allocation request only if the request meets, or is adjusted by the
 
39
Agency as necessary to meet, the requirements of this Section
225.445
1742
.
1743
f)
By June 1February
8
ofafter the applicable control period, the Agency willshall
1744
1745
notify each CAIR designated representative that submitted a NUSA allowance
1746
request of the amount of CAIR NO
x
allowances from the NUSA, if any, allocated
1747
for the control period to the new unit covered by the request.
1748
1749
g)
The Agency willshall
allocate CAIR NO
x
allowances to new units from the
NUSA no later than October 31February
15
1750
ofafter the applicable control period.
1751
h)
After a new CAIR NO
x
affected
1752
unit has operated in one control period, it
1753
becomes an existing unit for the purposes of Section 225.440 of this Subpart
only,
1754
and the Agency willshall
allocate CAIR NO
x
allowances for that unit, for the
1755
control period commencing four years in the future pursuant to Section 225.440
1756
of this Subpart
. For example, if a unit commences commercial operation in 2009,
1757
in 2010, the Agency willshall
allocate to that unit allowances pursuant to Section
225.440 for the 201
43
control period. The new CAIR NO
x
affected
unit willshall
1758
1759
continue to receive CAIR NO
x
allowances from the NUSA according to this
1760
Section until the unit is eligible to use the CAIR NO
x
allowances allocated to the
1761
unit pursuant to Section 225.440 of this Subpart
.
1762
ih
)
1763
If, after the completion of the procedures in subsection (c) of this Section for a
1764
control period, any unallocated CAIR NO
x
allowances remain in the NUSA for
1765
the control period, the Agency willshal
l, at a minimum, accrue those CAIR NO
x
allowances for future control period allocations to new CAIR NO
x
affected
1766
units.
1767
The Agency may from time to time elect to retire CAIR NO
x
allowances in the
1768
NUSA that are in excess of 15,881 for the purposes of continued progress toward
1769
attainment and maintenance of National Ambient Air Quality Standards pursuant
1770
to the CAA.
1771
Section 225.450
1772
Monitoring, Recordkeeping and Reporting Requirements for Gross
1773
Electrical Output and Useful Thermal Energy
1774
1775
a)
By January 1, 20082007
, or by the date of commencing commercial operation,
whichever is later, the owner or operator of the CAIR NO
x
affected unit shallmust
1776
install, calibrate, maintain, and operate a system for measuring gross electrical
1777
output;
wattmeter; and shallmust measure gross electrical output in MW-
1778
1779
hrsmegawatt-hours
on a continuous basis; and shallmust record the output of the
1780
measurement systemwattmeter
. If a generator is served by two or more units, the
information to determine each unit’s heat input for that control period shallmust
1781
1782
also be recorded, so as to allow each unit’s share of the gross electrical output to
1783
be determined. If heat input data is used, the owner or operator shallmust
comply
1784
with the applicable provisions 40 CFR 75, as incorporated by reference in Section
1785
225.140 of this Part
.
1786
40
b)
For a CAIR NO
x
an affected
1787
unit that is a cogeneration unit by January 1,
20082007
1788
, or by the date the CAIR NO
x
affected unit commences to produce
useful thermal energy, whichever is later, the owner or operator of a CAIR NO
x
an
1789
affected
1790
unit with cogeneration capabilities shallmust install, calibrate, maintain,
1791
and operate meters for steam flow in lbs/hr, temperature in degrees Fahrenheit,
1792
and pressure in PSI, to measure and record the useful thermal energy that is
produced, in mmBtu/hr, on a continuous basis. Owners and operators of a CAIR
1793
NO
x
an affected
1794
unit that produces useful thermal energy but uses an energy
transfer medium other than steam, e.g., hot water
or
,
1795
glycol, shallmust install,
1796
calibrate, maintain, and operate the necessary meters to measure and record the
1797
necessary data to express the useful thermal energy produced, in mmBtu/hr, on a
1798
continuous basis. If the CAIR NO
x
affected unit ceases to produce useful thermal
1799
energy, the owner or operator may cease operation of the meters, provided that
operation of thesesuch
meters shallmust be resumed if the CAIR NO
x
affected
1800
unit
1801
resumes production of useful thermal energy.
1802
c)
By
September 30, 2006, tT
he owner or operator of CAIR NO
x
an affected
1803
unit
shallmust
report to the Agency
:
1804
1805
1)
1806
By June 1, 2007, the gross electrical output for control periods 2001, 2002,
1807
2003, 2004 and 2005, if available, and, the unit’s useful thermal energy
data, if applicable. If gross electric output
is not available, heat input shall
1808
be used for those control periods 2001, 2002, 2003, 2004, and 2005 for
1809
1810
which gross electrical output data is not available.
If a generator is served
1811
by two or more units, the documentation needed to determine each unit’s
1812
share of the heat input of such units for that control period shallmust
also
be submitted. If heat input data is used, the owner or operator shallmust
1813
1814
comply with the applicable provisions 40 CFR 75, as incorporated by
reference in Section 225.140 of this Part
.
1815
1816
2)
By June 1, 2008, the gross electrical output for control periods 2006 and
1817
2007, if available, and the unit’s useful thermal energy data, if applicable.
1818
If a generator is served by two or more units, the documentation needed to
1819
determine each unit’s share of the heat input of such units for that control
1820
period must also be submitted. If heat input data is used, the owner or
1821
operator must comply witht he applicable provisions of 40 CFR 75, as
1822
incorporated by reference in Section 225.140.
1823
1824
d)
Beginning with year 20082007
, the CAIR designated representative of the CAIR
1825
NO
x
affected
unit shallmust submit to the Agency quarterly, by no later than
1826
January 31,
April 30, July 31, and
October 31
, and January 31
1827
of each year,
information for the CAIR NO
x
affected
1828
unit’s gross electrical output, on a monthly
1829
basis for the prior quarter
, and, if applicable, the unit’s useful thermal energy for
1830
each month.
1831
41
e)
The owner or operator of a CAIR NO
x
an affected
1832
unit shallmust maintain on-site
1833
the monitoring plan detailing the monitoring system, maintenance of the
monitoring system, including quality assurance activities pursuant to the
1834
requirements of 40 CFR 60 and 75, including the applicable provisions for the
1835
measurement of gross electrical output for the CAIR NO
x
trading program and, if
1836
applicable, for new units. The monitoring plan must include, but is not limited to:
1837
1838
1)
A description of the system to be used for the measurement of gross
1839
electrical output including a list of any data logging devices, solid-state
1840
kW meters, rotating kW meters, electromechanical kW meters, current
1841
transformers, potential transformers, pressure taps, flow venture, orifice
1842
plates, flow nozzles, vortex meters, turbine meters, pressure transmitters,
1843
differential pressure transmitters, termperature transmitters,
1844
thermocouples, and resistance temperature detectors.
1845
1846
2)
A certification statement by the CAIR designated representative tha
t all
1847
components of the gross electrical output system have been tested to be
1848
accurate within three percent and that the gross electrical output system is
1849
accurate to within ten percent.
1850
1851
f)
The owner or operator of a CAIR NO
x
an affected
1852
unit shallmust retain records for
1853
at least 5 years from the date the record is created or the data collected in
1854
subsections (a) and (b) of this Section, and the reports submitted to the Agency
1855
and USEPA in accordance with subsections (c) and (d) of this Section. The
owner or operator of a CAIR NO
x
an affected
1856
unit shallmust retain the monitoring
1857
plan required in subsection (e) of this Section for at least five years from the date
1858
that it is replaced by a new or revised monitoring plan.
1859
1860
Section 225.455
1861
Clean Air Set-Aside (CASA)
1862
a)
1863
A project sponsor may apply for allowances from the CASA for sponsoring an
1864
energy efficiency and conservation, renewable energy, or clean technology
1865
project as set forth in Section 225.460 of this Subpart
by submitting the
1866
application required by Section 225.470 of this Subpart
.
1867
b)
Notwithstanding subsection (a) of this Section, a project sponsor with a CAIR
1868
1869
NO
x
an affected source that is out of compliance with this Subpart for a given
1870
control period may not apply for allowances from the CASA for that control
1871
period. If a source receives CAIR NO
x
allowances from CASA and then is
1872
subsequently found to have been out of compliance with this Subpart for the
1873
applicable control period or periods, the project sponsor must restore the CAIR
1874
NO
x
allowances that it received pursuant to its CASA request or an equivalent
1875
number of CAIR NO
x
allowances to the CASA within six months of receipt of an
Agency notice that NO
x
allowances must be restoredfinding of noncompliance
1876
.
42
1877
These allowances willshall
be assigned to the fund from which they were
1878
distributed.
1879
c)
The Agency will not act as a mediator in situations
where more than one project
1880
sponsor requests CAIR NO
x
allowances for the same project. If more than one
1881
project sponsor submits an application for allowances for the same project for the
1882
same control period, the Agency shall reject all such applications.
1883
1884
1885
d
)
CAIR NO
x
allowances from CASA willshall be allocated in accordance with the
1886
procedures in Section 225.475 of this Subpart
.
1887
de
)
1888
The project sponsor may submit an application that aggregates two or more
1889
projects under a CASA project category that would individually result in less than
1890
one allowance, but that equal at a minimum one whole allowance when
aggregated. The Agency shall not allocate allowances for projects totaling less
1891
than one whole allowance after rounding.
1892
1893
Section 225.460
1894
Energy Efficiency and Conservation, Renewable Energy, and Clean
1895
Technology Projects
1896
a)
1897
Energy efficiency and conservation project means any of the following projects
1898
implemented in Illinois:
1899
1)
1900
Demand side management projects that reduce overall power demand by
1901
using less energy, include:
1902
A)
1903
Smart building management software that more efficiently
1904
regulates power flows.
1905
B)
1906
The use of or replacement to high efficiency motors, pumps,
1907
compressors, or steam systems.
1908
C)
Lighting retrofits.
1909
1910
2)
1911
Energy efficient new building construction projects include:
1912
A)
1913
ENERGY STAR qualified new home projects.
1914
1915
B)
Measures to reduce or
conserve energy consumption beyond the
1916
requirements of the Illinois Energy Conservation Code for
1917
Commercial Buildings (20 ILCS 687/6-3).
1918
C)
1919
New residential construction projects that qualify for Energy
1920
Efficient Tax Incentives pursuant tounder
the Energy Policy Act of
2005, 42 U.S.C. §
1921
15801 (2005).
1922
43
3)
1923
Supply-side energy efficiency projects include projects implemented to
1924
improve the efficiency in electricity generation by coal-fired power plants,
1925
and the efficiency of electrical transmission and distribution systems.
1926
4)
1927
Highly efficient power generation projects, such as, but not limited to,
1928
combined cycle projects, combined heat and power, and microturbines.
To be considered a highly efficient power generation project pursuant
1929
tounder
this subsection (a)(4), a project must meet
1930
, the applicable
1931
thresholds and criteria
listed below:
1932
A)
1933
For combined heat and power projects generating both electricity
1934
and useful thermal energy for space, water, or industrial process
heat, a rated-energy efficiency of at least 60 percent
and is not a
1935
1936
CAIR NO
x
unit.
1937
B)
1938
For combined cycle projects rated at greater than 0.50 MW, a
1939
rated-energy efficiency of at least 50 percent.
1940
C)
1941
For microturbine projects rated at or below 0.50 MW and all other
1942
projects, rated-energy efficiency of at least 40 percent.
1943
b)
1944
Renewable energy project means any of the following projects implemented in
1945
Illinois:
1946
1)
1947
Zero-emission electric generating projects, including wind, solar (thermal
1948
or photovoltaic), and hydropower projects. Eligible hydropower plants are
1949
restricted to new generators, that are not replacements of existing
1950
generators, that commence operation on or after January 1, 2006, and do
1951
not involve the significant expansion of an existing dam or the
1952
construction of a new dam.
1953
2)
1954
Renewable energy units are those units that generate electricity using more
1955
than 50 percent of the heat input, on an annual basis, from dedicated crops
1956
grown for energy production or the capture systems for methane gas from
1957
landfills, water treatment plants or sewage treatment plants, and organic
1958
waste biomass, and other similar sources of non-fossil fuel energy.
1959
Renewable energy projects do not include energy from incineration by
1960
burning or heating of waste wood, tires, garbage, general household,
1961
institutional lunchroom or office waste, landscape waste, or construction
1962
or demolition debris.
1963
c)
1964
Clean technology project for reducing emissions from producing electricity and
1965
useful thermal energy means any of the following projects implemented in
1966
Illinois:
1967
1)
Air pollution control equipment upgrades at existing coal-fired electric
1968
44
generating unitEGU
1969
s, as follows: installation of flue gas desulfurization
1970
(FGD) for control of SO
2
emissions; installation of a baghouse for control
1971
of particulate matter emissions; and installation of selective catalytic
1972
reduction (SCR), selective non-catalytic reduction (SNCR), or other add-
1973
on control devices for control of NO
x
emissions. Air pollution control
1974
upgrade projects do not include the addition of low NO
x
burners, overfired
1975
air techniques or gas reburning techniques for control of NO
x
emissions;
1976
projects involving flue gas conditioning techniques or upgrades, or
1977
replacement of electrostatic precipitators; or addition of activated carbon
1978
injection or other sorbent injection system for control of mercury. For this
1979
purpose, a unit willshall
be considered “existing” after it has been in
1980
commercial operation for at least eight years.
1981
1982
2)
Clean coal technologies projects include:
1983
A)
1984
Integrated gasification combined cycle (IGCC) plants.
1985
B)
1986
Fluidized bed coal combustion.
1987
d)
1988
In addition to those projects excluded in subsections (a) through (c) of this
1989
Section, the following projects are also not eEnergy
efficiency and conservation,
1990
renewable energy, or clean technology projects listed in subsection (a) through (c)
1991
of this Section shall not include
:
1992
1993
1)
Nnuclear power projects.;
1994
1995
2)
Pprojects required to meet emission standards or technology requirements
1996
under State or federal law or regulation (
, except that allowances may be
1997
allocated
for:
1998
1999
A)
Tthe installation of a baghouse).;
2000
B)
2001
Projects undertaken pursuant to Section 225.233.
2002
2003
3)
Pprojects used to meet the requirements of a court order or consent decree,
2004
except that allowances may be allocated for:
2005
A)
2006
Emission rates or limits achieved that are lower than what is
2007
required to meet the emission rates or limits for SO
2
or NO
x,
or for
2008
installing a baghouse as provided for in a court order or consent
2009
decree entered into before May 30, 2006.
2010
B)
2011
Projects used to meet the requirements of a court order or consent
2012
decree entered into on or after May 30, 2006, if the court order or
2013
consent decree does not specifically preclude such allocations.
2014
45
2015
4)
Aa
Supplemental Environmental Project (SEP). CASA allowances shall
2016
not be allocated to such projects.
2017
e)
2018
Applications for projects that that are not specifically listed in subsections (a)
through (c) of this Section, and that are not specifically excluded by definition in
2019
2020
subsections (a) through (c) of this Section or by specific exclusion in
subsection
(d) of this Section, may be submitted to the Agency. TheSuch
2021
application
2022
shallmust
designate which category or categories from those listed in subsections
2023
(a)(1) through (c)(2)(B) of this Section best fits the proposed project and the
applicable formula pursuant tounder
2024
Section 225.465(b) of this Section to
calculate the number of allowances that it is requesting. The Agency willshall
2025
2026
determine whether the application is approvable based on a sufficient
2027
demonstration by the project sponsor that the project is a new type of energy
2028
efficiency, renewable energy, or clean technology project, similar in its effects as
2029
the projects specifically listed in subsection (a) through (c) of this Section.
2030
f)
2031
Early adopter projects include projects that meet the criteria for any energy
2032
efficiency and conservation, renewable energy, or clean technology projects listed
2033
in subsections (a) , (b), (c), and (e) of this Section and commence construction
2034
between July 1, 2006, and December 31, 2012.
2035
Section 225.465
2036
CASA Allowances
2037
2038
a)
The CAIR NO
x
allowances for the CASA for each control period willshall be
2039
assigned to the following categories of projects:
2040
Phase I
Phase II
2041
2042
(2009-2014)
(2015 and
2043
thereafter)
2044
1)
Energy Efficiency and Conservation/ 9149
2045
7625
2046
Renewable Energy
2047
2)
Air Pollution Control Equipment
3811
2048
3175
2049
Upgrades
2050
3)
Clean Coal Technology
4573
2051
3810
2052
2053
4)
Early Adopters
1525
1271
2054
b)
2055
The following formulas mustshall
be used to determine the number of CASA
2056
allowances that may be allocated to a project per control period:
2057
1)
2058
For an energy efficiency and conservation project pursuant to Sections
225.460(a)(1) through (a)
2059
(4)(A)(3)
of this Subpart, the number of
2060
allowances mustshall
be calculated using the number of megawatt hours of
46
2061
electricity that was not consumed during a control period and the
2062
following formula:
2063
A
2064
=
(
MWh
c
)
×
(1.5 lb/MWh) / 2000 lb
2065
2066
Where:
2067
2068
A
=
The number of allowances for a particular project.
MWh
c
=
2069
The number of megawatt hours of electricity
2070
conserved or generated
during a control period by a
2071
project.
2072
2)
2073
For a zero emission electric generating projects pursuant to Section
2074
225.460(b)(1) of this Subpart
, the number of allowances mustshall be
2075
calculated using the number of megawatt hours of electricity generated
2076
during a control period and the following formula:
2077
A
=
2078
(MWh
g
)
×
(2.0 lb/MWh) / 2000 lb
2079
2080
Where:
2081
A
=
2082
The number of allowances for a particular project
MWh
g
=
2083
The number of megawatt hours of electricity
2084
generated during a control period by a project.
2085
3)
For a renewable energy emission unit pursuant to Section 225.460(b)(2) of
2086
this Subpart
, the number of allowances mustshall
2087
be calculated using the
2088
number of MWhmegawatt
hours of electricity generated during a control
2089
period and the following formula:
2090
A
=
2091
(MWh
g
)
×
(0.5 lb/MWh) / 2000 lb
2092
2093
Where:
2094
A
=
2095
The number of allowances for a particular project.
MWh
g
=
2096
The number of MW hours of electricity generated
2097
during a control period by a project.
2098
4)
2099
For an air pollution control equipment upgrade project pursuant to Section
2100
225.460(c)(1) of this Subpart
, the number of allowances willshall be
2101
calculated as follows:
2102
2103
A)
For NO
x
or SO
2
control projects, by determining the difference in
2104
emitted NO
x
or SO
2
per control period using the emission rate
2105
before and after replacement or improvement, and the following
2106
formula:
47
2107
2108
A=
(MWh
g
)
×
K
×
(ER
B
lb/MWh - ER
A
lb/MWh) / 2000 lb
2109
2110
Where:
A
=
2111
The number of allowances for a particular
2112
project.
MWh
g
=
2113
The number of megawatt hours of electricity
2114
generated during a control period by a
2115
project.
K
=
2116
The pollutant factor: for NO
x
, K= 0.1; and
2117
for SO
2
, K = 0.05.
2118
ER
B
=
Average NO
x
or SO
2
emission rate based on
CEMS data from the most recent two
2119
2120
control
periods prior to the replacement or
2121
improvement of the control equipment in
2122
lb/MWh, unless subject to a court order
2123
or consent decree. For units subject to a
2124
court order or consent decree entered into
2125
before May 30, 2006, ER
B
is limited to
2126
emission rates that are lower than the
2127
emission rate required in the consent decree
2128
or court order. For a court order or consent
2129
decree entered into after May 30, 2006, ER
B
2130
is limited to the lesser of the emission rate
2131
specified in the court order or consent
2132
decree or the actual average emission rate
2133
during the control period. If such limit is
2134
not expressed in lb/MWh, the limit must be
2135
converted into lb/MWh using a heat rate of
2136
10 mmBtu/1 MW
.
ER
A
=
2137
Annual NO
x
or SO
2
average emission rate
2138
for the applicable control period data based
2139
on CEMS data in lb/MWh.
2140
B)
2141
For a baghouse project:
2142
A =
2143
(MWh
g
)
×
(Q0.2 lb/MWh) / 2000 lb
2144
2145
Where:
2146
A
=
2147
The number of allowances for a
2148
particular project.
MWh
g
=
The number of MWhmegawatt hours
2149
of
2150
electricity generated during a control period
2151
or the portion of a control period that the
2152
units were controlled by the baghouse.
48
Q
=
2153
0.2, unless installed pursuant to a court order
2154
or consent decree which does not specify a
2155
factor, then Q = 0.05, or if installed pursuant
2156
to a consent decree or court order that does
2157
specify a factor then Q equals a factor not to
2158
exceed 0.2.
2159
5)
For highly efficient power generation and clean technologyIGCC
2160
projects
pursuant to Sections 225.460(a)(4)(B),
(a)(4)(C), and (c)(2) of this
2161
2162
Subpart
, the number of allowances mustshall be calculated using the
2163
number of megawatt hours of electricity the project generates during a
2164
control period and the following formula:
2165
2166
A
=
(MWh
g
)
×
(1.0 lb/MWh – ER lb/MWh) / 2000 lb
2167
2168
Where:
2169
A
=
2170
The number of allowances for a particular project.
MWh
g
=
2171
The number of megawatt hours of electricity
2172
generated during a control period by a project.
ER
=
2173
Annual average NO
x
emission rate based on CEMS
2174
data in 1b/MWh.
2175
6)
For a CASA project that commence
2176
sd
construction before December 31,
2012, in addition to the allowances allocated pursuant tounder
2177
subsections
2178
(b)(1) through (b)(5) of this Section, a project sponsor may also request
2179
additional allowances pursuant tounder
the early adopter project category
2180
pursuant to Section 225.460(e) of this Section
based on the following
2181
formula:
2182
A
=
2183
1.0 + 0.10
×
Σ
A
i
2184
2185
Where:
2186
A
=
2187
The number of allowances for a particular project as
2188
determined in subsections (b)(1) through (b)(5) of
2189
this Section.
A
i
=
2190
The number of allowances as determined in
2191
subsection (b)(1), (b)(2), (b)(3), (b)(4) or (b)(5) of
2192
this Section for a given project.
2193
Section 225.470
2194
CASA Applications
2195
a)
2196
A project sponsor may request allowances if the project commenced construction
2197
on or after the dates listed below. The project sponsor may request and be
49
2198
allocated allowances from more than one CASA category for a project, if
2199
applicable.
2200
1)
2201
Demand side management, energy efficient new construction, and supply
2202
side energy efficiency and conservation projects that commenced
2203
construction on or after January 1, 2003;
2204
2)
2205
Fluidized bed coal combustion projects, highly efficient power generation
2206
operations projects, or renewable energy emission units, which
2207
commenced construction on or after January 1, 2001; and
2208
3)
2209
All other projects on or after July 1, 2006.
2210
b)
2211
Beginning with the 2009 control period and each control period thereafter, a
2212
project sponsor may request allowances from the CASA. The application must be
2213
submitted to the Agency by May 1 of the control period for which the allowances
2214
are being requested.
2215
2216
c)
The allocation willshall
be based on the electricity conserved or generated in the
2217
control period preceding the calendar year in which the application is submitted.
2218
To apply for a CAIR NO
x
allocation from the CASA, project sponsors must
2219
provide the Agency with the following information:
2220
1)
2221
Identification of the project sponsor, including name, address, type of
organization, certification that the project sponsor has met the definition of
2222
2223
“project sponsor” as set forth in Section 225.130,
and name(s) of the
2224
principals or corporate officials.
2225
2)
2226
The number of the CAIR NO
x
general or compliance account for the
2227
project and the name of the associated CAIR account representative.
2228
3)
2229
A description of the project or projects, location, the role of the project
2230
sponsor in the projects, and a general explanation of how the amount of
2231
energy conserved or generated was measured, verified, and calculated, and
2232
the number of allowances requested and
the with the supporting
2233
calculations. The number of allowances requested willshall
be calculated
2234
using the applicable formula from Section 225.470(b) of this Section
.
2235
4)
2236
Detailed information to support the request for allowances, including the
2237
following types of documentation for the measurement and verification of
2238
the NO
x
emissions reductions, electricity generated, or electricity
2239
conserved using established measurement verification procedures, as
2240
applicable. The measurement and verification required willshall
depend
2241
on the type of project proposed.
2242
A)
2243
As applicable, documentation of the project’s base and control
50
2244
period conditions and resultant base and control period energy
2245
data, using the procedures and methods included in
M&V
2246
Guidelines: Measurement and Verification for Federal Energy
2247
Projects,
incorporated by reference in Section 225.140 of this Part
,
2248
or other method approved by the Agency. Examples include:
2249
i)
2250
Energy consumption and demand profiles;
2251
2252
ii)
Occupancy type;
2253
2254
iii)
Density and periods;
2255
iv)
2256
Space conditions or plant throughput for each operating
2257
period and season. (For example, in a building this would
2258
include the light level and color, space temperature,
2259
humidity and ventilation);
2260
v)
2261
Equipment inventory, nameplate data, location, condition;
2262
and
2263
2264
vi)
Equipment operating practices (schedules and set points,
2265
actual temperatures/pressures).
2266
B)
2267
Emissions data, including, if applicable, CEMS data;
2268
C)
2269
Information for rated–energy efficiency including supporting
2270
documentation and calculations; and
2271
D)
2272
Electricity, in MWh generated or conserved for the applicable
2273
control period.
2274
5)
2275
Notwithstanding the requirements of subsections (c)(4) of this Section,
2276
applications for fewer than five allowances may propose other reliable and
2277
applicable methods of quantification acceptable to the Agency.
2278
6)
2279
Any additional information requested by the Agency to determine the
2280
correctness of the requested number of allowances, including site
2281
information, project specifications, supporting calculations, operating
2282
procedures, and maintenance procedures.
2283
7)
2284
The following certification by the responsible official for the project
2285
sponsor and the applicable CAIR account representative for the project:
2286
2287
“I am authorized to make this submission on behalf of the project sponsor
2288
and the holder of the CAIR NO
x
general account or compliance account
2289
for which the submission is made. I certify under penalty of law that I
51
2290
have personally examined, and am familiar with the statements and
2291
information submitted in this application and all its attachments. Based on
2292
my inquiry of those individuals with primary responsibility for obtaining
2293
the information, I certify that the statements and information are to the
2294
best of my knowledge and belief true, accurate, and complete. I am aware
2295
that there are significant penalties for submitting false statements and
2296
information or omitting required statements and information.”
2297
d)
2298
A project sponsor may request allowances from the CASA for each project a total
2299
number of control periods not to exceed the number of control periods listed
2300
below. After a project has been allocated allowances from CASA, subsequent
2301
requests for the project from the project sponsor shallmust
include the information
2302
required by subsections (c)(1), (c)(2), (c)(3) and (c)(7) of this Section, a
2303
description of any changes, or further improvements made to the project, and
2304
information specified in subsections (c)(5) and (c)(6) as specifically requested by
2305
the Agency.
2306
1)
2307
For energy efficiency and conservation projects (except for efficient
2308
operation and renewable energy projects), for a total of eight control
2309
periods.
2310
2)
2311
For early adopter projects, for a total of ten control periods.
2312
3)
2313
For air pollution control equipment upgrades for a total of 15 control
2314
periods.
2315
43
)
2316
For renewable energy projects, clean coal technology, and highly efficient
2317
power generation projects, for each year that the project is in operation.
2318
e)
2319
A project sponsor must keep copies of all CASA applications and the
2320
documentation used to support the application for at least five years.
2321
Section 225.475
2322
Agency Action on CASA Applications
2323
2324
a)
By SeptemberOctober
1, 2009, and each SeptemberOctober 1 thereafter, the
2325
Agency willshall
determine the total number of allowances that are approvable for
2326
allocation to project sponsors based upon the applications submitted pursuant to
2327
Section 225.470 of this Subpart
.
2328
2329
1)
The Agency willshall
determine the number of CAIR NO
x
allowances that
are approvable based on the formulas and the criteria for thesesuch
2330
2331
projects. The Agency willshall
notify a project sponsor within 90 days
2332
after receipt of an application if the project is not approvable, the number
2333
of allowances requested is not approvable, or additional information is
2334
needed by the Agency to complete its review of the application.
2335
52
2)
2336
If the total number of CAIR NO
x
allowances requested for approved
2337
projects is less than or equal to the number of CAIR NO
x
allowances in
2338
the CASA project category, the number of allowances that are approved
2339
willshall
be allocated to each CAIR NO
x
compliance or general account.
2340
3)
2341
If more CAIR NO
x
allowances are requested than the number of CAIR
NO
x
allowances in a given CASA project category, allowances willshall
2342
2343
be allocated on a pro-rata basis based on the number of allowances
2344
available, subject to further adjustment as provided for by subsection (b)
2345
of this Section. CAIR NO
x
allowances willshall be allocated, transferred,
or used as whole allowances. The number of whole allowances willshall
2346
2347
be determined by rounding down for decimals less than 0.5 and rounding
2348
up for decimals of 0.5 or greater.
2349
2350
b)
For control periods 2011 and thereafter, iI
f there are, after the completion of the
2351
procedures in subsection (a) of this Section for a control period, any CAIR NO
x
2352
allowances not allocated to a CASA project for the control period:
2353
1)
The remaining allowances
will accrue
in each CASA project category will
2354
2355
accrue
up to twice the number of allowances that are assigned to the
project category each control period as set forth in Section 225.465 of this
2356
2357
Subpart
.
2358
2)
For control period 2011 and thereafter,
If any allowances remain after
2359
allocations pursuant to subsection (a) of this Section, the Agencyin
a
2360
project category that are in excess of twice the number assign for the
2361
control period as set forth in Section 225.465
of this Subpart willshall
2362
beallocate
these allowances pro-rata to projects that received fewer
2363
allowances than requested, based on the number of allowances not
2364
allocated but approved by the Agency for the project under CASA. No
2365
project may be allocated more allowances than approved by the Agency
2366
for the applicable
redistributed to project categories that have fewer than
2367
twice the number of allowances assigned to that project category for the
2368
2369
control period.
2370
3)
For control period 2011 and thereafterIf
any allowances remain after the
2371
allocation of allowances pursuant to subsection (b)(2) of this Section
2372
, the
Agency willshall
then distribute pro-rata the remaining reallocate
2373
allowances to projects that received fewer allowances than requested and
2374
approved on a pro-rata
basis, based on the total number of approved
2375
allowances
for the projectsto project categories that have fewer than twice
2376
the number of allowances assigned to that project category. The pro-rata
2377
distribution will be based on the difference between two times the project
2378
2379
category and the number of allowances that remain in the project category
.
2380
53
4)
For control period 2011 and thereafter, if after the redistribution of
2381
allowances pursuant to subsection (b)(2) any allowances remain, these
2382
allowances shall be reassigned to project categories that have fewer than
2383
twice the number of allowances annually assigned to that project category
2384
as set forth in Section 225.465 of this Subpart, after the allocation in
2385
subsection (b)(3) of this Section.
2386
2387
5)
The Agency shall repeat the process of allocating allowances to CASA
2388
projects that received fewer allowances than requested and approved, and
2389
reassigning allowances to project categories as set forth in subsections
2390
(b)(2), (b)(3), and (b)(4) of this Section, until no allowances remain to be
2391
reassigned between project categories
and the approved allowance
2392
2393
requests have been filled.
If allowances still remain
unallocatedundistributed
after the allocations and distributions in the
2394
above subsections are completed
, the Agency may elect to retire theany
2395
CAIR NO
x
allowances that have not been distributed to any CASA
2396
categoryremain
after all approved requests for allowances have been met
2397
and each project category has accrued twice the number of allowances
2398
2399
assigned for that project category
to continue progress toward attainment
2400
or maintenance of the National Ambient Air Quality Standards pursuant to
2401
the CAA.
2402
Section 225.480
2403
Compliance Supplement Pool
2404
In addition to the CAIR NO
x
allowances allocated pursuant tounder Section 225.4
23
5 of this
2405
2406
Subpart
, the USEPA has provided an additional 11,299 CAIR NO
x
allowances from the federal
2407
compliance supplement pool to Illinois for the control period in 2009. On January 1, 2009, the
2408
Agency willshall
retire all 11,299 NO
x
allowances for public health and air quality
2409
improvements.
2410
2411
SUBPART E: CAIR NO
x
OZONE SEASON TRADING PROGRAM
2412
Section 225.500
2413
Purpose
2414
2415
The purpose of this Subpart E
is to control the seasonal emissions of nitrogen oxides (NO
x
) from
2416
electric generating unitEGU
s by determining allocations and implementing the CAIR NO
x
2417
Ozone Season Trading Program.
2418
Section 225.505
2419
Applicability
2420
a)
Except as provided in subsection
s (b)(1), (b)(3), and (b)(4) of this Section:
2421
2422
1)
The following units are CAIR NO
x
Ozone Season units, and any source
2423
that includes one or more such units is a CAIR NO
x
source subject to the
2424
requirements of this Subpart E: any stationary, fossil-fuel-fired boiler or
2425
stationary, fossil-fuel-fired combustion turbine serving at any time, since
2426
54
the later of November 15, 1990 or the start-up the unit’s combustion
2427
chamber, a generator with nameplate capacity of more than 25 MWe
2428
producing electricity for sale.
2429
2430
2)
If a stationary boiler or stationary combustion turbine that pursuant to
2431
subsection (a)(1) of this Section, is not a CAIR NO
x
Ozone Season unit
2432
begins to combust fossil fuel or to serve a generator with nameplate
2433
capacity of more than 25 MWe producing electricity for sale, the unit will
2434
become a CAIR NO
x
Ozone Season unit as provided in subsection (a)(1)
2435
of this Section on the first date on which it both combusts fossil fuel and
2436
serves such generator.
2437
2438
b)
The units that meet the requirements set forth in subsections (b)(1), (b)(3), and
2439
(b)(4) of this Section will not be CAIR NO
x
units and units that meet the
2440
requirements of subsections (b)(2) and (b)(5) of this Section are CAIR NO
x
2441
Ozone Season units:
2442
2443
1)
Any unit that is a CAIR NO
x
Ozone Season unit pursuant to subsection
2444
(a)(1) or (a)(2) of this Section
and
:
2445
2446
A)
Qualif
ies as a cogeneration unit during the 12-month period
2447
starting on the date the unit first produces electricity and
2448
continuing to qualify as a cogeneration unit; and
2449
2450
B)
Does n
ot serve at any time, since the later of November 15, 1990
2451
or the start-up of the unit’s combustion chamber, a generator with
2452
nameplate capacity of more than 25 MWe supplying any calendar
2453
year more than one-third of the of the unit’s potential electric
2454
output capacity or 219,000 MWh, whichever is greater, to any
2455
utility power distribution for sale.
2456
2457
2)
If a unit qualifies as a cogeneration unit during the 12-month period
2458
starting on the date the unit first produces electricity and meets the
2459
requirements of subsection (b)(1) of this Section for at least one calendar
2460
year, but subsequently no longer meets all such requirements, the unit
2461
shall become a CAIR NO
x
Ozone Season unit starting on the earlier of
2462
January 1 after the first calendar year during which the unit no longer
2463
qualifies as a cogeneration unit or January 1 after the first calendar year
2464
during which the unit no longer meets the requirements of subsection
2465
(b)(1)(B) of this Section.
2466
2467
3)
Any unit that is a CAIR NO
x
Ozone Season unit pursuant to subsection
2468
(a)(1) or (a)(2) of this Section commencing operation before January 1,
2469
1985
and
:
2470
2471
A)
Qualif
ies as a solid waste incineration unit; and
2472
55
2473
B)
With an average annual fuel consumption of non-fossil fuel for
2474
1985-1987 exceeding 80 percent (on a Btu basis) and an average
2475
annual fuel consumption of non-fossil fuel for any three
2476
consecutive calendar years after 1990 exceeding 80 percent (on a
2477
Btu basis).
2478
2479
4)
Any unit that is a CAIR NO
x
Ozone Season unit under subsection (a)(1) or
2480
(a)(2) of this Section commencing operation on or after January 1, 1985:
2481
and
2482
2483
A)
Qualif
ies as a solid waste incineration unit; and
2484
2485
B)
With an average annual fuel consumption of non-fossil fuel the
2486
first three years of operation exceeding 80 percent (on a Btu basis)
2487
and an average annual fuel consumption of non-fossil fuel for any
2488
three consecutive calendar years after 1990 exceeding 80 percent
2489
(on a Btu basis).
2490
2491
5)
If a unit qualifies as a solid waste incineration unit and meets the
2492
requirements of subsection (b)(3) or (b)(4) of this Section for at least three
2493
consecutive years, but subsequently no longer meets all such
2494
requirements, the unit shall become a CAIR NO
x
Ozone Season unit
2495
starting on the earlier of January 1 after the first three consecutive calendar
2496
years after 1990 for which the unit has an average annual fuel
2497
consumption of fuel of 20 percent or more.
2498
a)
A fossil fuel-fired stationary boiler, combustion turbine or combined cycle system
2499
is an electrical
generating unit if it serves a generator that has a nameplate
2500
capacity greater than 25 MWe and produces electricity for sale and is not included
2501
in Appendix D of 35 Ill. Adm. Code Part 217. An electric generating unit is
2502
subject to the CAIR NO
x
Ozone Season Trading Program contained in this
2503
Subpart and is a CAIR NO
x
Ozone Season unit or affected unit for the purposes of
2504
this Subpart.
2505
2506
b)
Notwithstanding subsection (a) of this Section, an EGU shall not be an affected
2507
unit and is not subject to the
CAIR NO
x
Ozone Season Trading Program
2508
contained in this Subpart if it meets the requirements of either subsection
2509
(b)(1)(A) or (b)(2)(A) of this Section, as follows:
2510
2511
1)
A unit that:
2512
2513
A)
Meets the definition of a cogeneration unit in Section 225.130 of
2514
this
Part; and
2515
2516
i)
Qualifies as a cogeneration unit during the 12-month period
2517
starting on the date the unit first produces electricity and
2518
56
continues to qualify as a cogeneration unit; and
2519
2520
ii)
Does not serve at any time, since the later of November 15,
2521
1990
, or the start-up of the unit’s combustion chamber, a
2522
generator with a nameplate capacity of more than 25 MWe,
2523
and which supplies in any calendar year more than one-
2524
third of the unit’s potential electrical output capacity or
2525
219,000 MWh, whichever is greater
, to a utility power
2526
distribution system for sale.
2527
2528
B)
If a unit qualifies as a cogeneration unit during the 12-month
2529
period starting on the date the unit first produces electricity but
2530
subsequently no longer qualifies as a cogeneration unit, the unit
2531
shall
be subject to subsection (a) of this Section starting on the
2532
January 1 after which the unit first no longer qualifies as a
2533
cogeneration unit.
2534
2535
2)
A unit that:
2536
2537
A)
Qualifies as a solid waste incineration unit as defined by Section
2538
129(g) of the CAA [42
U.S.C. 7429(g)]; and
2539
2540
i)
Commences operation on or after January 1, 1985; and
2541
2542
ii)
Has an average annual fuel consumption of non-fossil fuel
2543
for the first three calendar years of operation exceeding 80
2544
percent (on a Btu basis) and an average annual fuel
2545
consumption of non-fossil
fuel for any three consecutive
2546
calendar years after 1990 exceeding 80 percent (on a Btu
2547
basis).
2548
2549
B)
If a unit qualifies as a solid waste incineration unit and meets the
2550
requirements of subsection (b)(2)(A) of this Section for at
least
2551
three consecutive calendar years, but subsequently no longer meets
2552
all such requirements, the unit shall become an affected unit
2553
starting on the January 1 after which the unit has an average annual
2554
fuel consumption of fossil fuel of 20 percent or more.
2555
2556
Section 225.510
2557
Compliance Requirements
2558
a)
The owner or operator of a CAIR NO
x
Ozone Seasonan affected unit mustshall
2559
2560
comply with the requirements of the CAIR NO
x
Ozone Season Trading Program
2561
for Illinois as set forth in this Subpart E
and 40 CFR 96, subpart AAAA (CAIR
NO
x
Ozone Season Trading Program General Provisions) (excluding 40 CFR §§
2562
2563
96.304, 96.305(b)(2), and 96.306); 40 CFR 96, subpart BBBB (CAIR Designated
2564
Representative for CAIR NO
x
Ozone Season Sources); 40 CFR 96, subpart FFFF
57
2565
(CAIR NO
x
Ozone Season Allowance Tracking System); 40 CFR 96, subpart
2566
GGGG (CAIR NO
x
Ozone Season Allowance Transfers); and 40 CFR 96,
2567
subpart HHHH (Monitoring and Reporting); as incorporated by reference in
2568
Section 225.140 of this Part
.
2569
2570
b)
Permit requirements:
2571
1)
The owner or operator of each source with one or more CAIR NO
x
Ozone
2572
2573
Seasonaffected
units at the source must apply for a permit issued by the
2574
Agency with federally enforceable conditions covering the CAIR NO
x
2575
Ozone Season Trading Program (“CAIR NO
x
Ozone Season permit”) that
complies with the requirements of Section 225.520 of this Subpart
2576
2577
(Permit Requirements).
2578
2)
The owner or operator of each CAIR NO
x
Ozone Seasonaffected
2579
source
2580
and each CAIR NO
x
Ozone Seasonaffected unit at the source must operate
the CAIR NO
x
Ozone Seasonaffected unit in compliance with itssuch
2581
2582
CAIR NO
x
Ozone Season permit.
2583
2584
c)
Monitoring requirements:
2585
1)
The owner or operator of each CAIR NO
x
Ozone Seasonaffected
2586
source
2587
and each CAIR NO
x
Ozone Seasonaffected unit at the source must comply
2588
with the monitoring requirements of 40 CFR 96, subpart HHHH; 40 CFR
2589
75; and Section 225.550 of this Subpart
. The CAIR designated
2590
representative of each CAIR NO
x
Ozone Seasonaffected source and each
2591
CAIR NO
x
Ozone Seasonaffected unit at the source must comply with
those sections of the monitoring
, reporting and recordkeeping
2592
2593
requirements of 40 CFR 6, subpart HHHH, applicable to a CAIR
2594
designated representative.
2595
2)
The compliance of each CAIR NO
x
Ozone Seasonaffected
2596
sourceunit with
the CAIR NO
x
Ozone Season emissions limitation pursuant tounder
2597
2598
subsection (d) of this Section willshall
be determined by the emissions
2599
measurements recorded and reported in accordance with 40 CFR 96,
2600
subpart HHHH.
2601
2602
d)
Emission requirements:
2603
2604
1)
By the allowance transfer deadline,
November 30, 2009, and by
November 30, of each subsequent year, the allowance transfer deadline
2605
,
the owner or operatorCAIR
designated representative
of each CAIR NO
x
2606
Ozone Seasonaffected
source and each CAIR NO
x
Ozone Seasonaffected
2607
2608
unit at the source mustshall
hold allowances available for compliance
deductions pursuant tounder
40 CFR §
2609
96.354(a) in the CAIR NO
x
Ozone
Season source’s compliance account. The allowance transfer deadline
2610
58
means by midnight of November 30
(if it is business day) or midnight of
2611
the first business day thereafter.
The number of allowances held mayshall
2612
2613
not be less than the tons of NO
x
emissions for the control period from all
CAIR NO
x
Ozone Seasonaffected units at the CAIR NO
x
Ozone
2614
Seasonaffected
2615
source, rounded to the nearest whole ton, as determined in
accordance with 40 CFR 96, subpart HHHH, plus any number of
2616
allowances necessary to account for actual
utilization including, but not
2617
limited to, testing, start-up,
malfunction, and shut down
2618
.
2619
2)
2620
Each ton of NO
x
emitted in excess of the number of CAIR NO
x
Ozone
Season allowances held by the owner or operator for each CAIR NO
x
2621
2622
Ozone Seasonaffected
unit in its CAIR NO
x
Ozone Season compliance
2623
account for each day of the applicable
control period willshall constitute a
separate violation of this Subpart E
,
and the Act, and the CAA
2624
.
2625
3)
Each CAIR NO
x
Ozone Seasonaffected
2626
unit willshall be subject to the
monitoring and compliance
requirements of subsections (c)(1) and (d)(1)
2627
2628
of this Section starting on the later of MayJanuary
1, 2009, or the deadline
for meeting the unit’s monitoring certification requirements pursuant
2629
tounder
40 CFR § 96.370(b)(1), (b)(2) or (b)(3) and for each control
2630
2631
period thereafter
.
2632
4)
CAIR NO
x
Ozone Season allowances mustshall
2633
be held in, deducted from,
2634
or transferred into
among allowance accounts in accordance with this
2635
Subpart and 40 CFR 96, subparts FFFF and GGGG.
2636
5)
2637
In order to comply with the requirements of subsection (d)(1) of this
2638
Section, a CAIR NO
x
Ozone Season allowance may not be
deductedutilized
for compliance according to subsection (d)(1) of this
2639
2640
Section , for
a control period in a calendar year beforeprior to the year for
2641
which the CAIR NO
x
Ozone Season allowance is allocated.
2642
2643
6)
A CAIR NO
x
Ozone Season allowance allocated by the Agency or
2644
USEPA pursuant tounder
the CAIR NO
x
Ozone Season Trading Program
2645
is a limited authorization to emit one ton of NO
x
in accordance with the
2646
CAIR NO
x
Ozone Season Trading Program. No provision of the CAIR
NO
x
Ozone Season Trading Program, the CAIR NO
x
Ozone Season
2647
2648
permit application, the CAIR NO
x
Ozone Season permit, or a retired unit
exemption pursuant tounder
40 CFR §
2649
96.305, and no provision of law,
2650
willshall
be construed to limit the authority of the United States or the
2651
State to terminate or limit this authorization.
2652
2653
7)
A CAIR NO
x
Ozone Season allowance allocated by the Agency or
2654
USEPA pursuant tounder
the CAIR NO
x
Ozone Season Trading Program
2655
does not constitute a property right.
2656
59
8)
2657
Upon recordation by USEPA pursuant tounder
40 CFR 96, subpart FFFF
2658
or subpart GGGG, every allocation, transfer, or deduction of an allowance
2659
to or from a CAIR NO
x
Ozone Season source compliance account is
2660
deemed to amend automatically, and become a part of, any CAIR NO
x
2661
Ozone Season permit of the CAIR NO
x
Ozone Seasonaffected source.
2662
This automatic amendment of the CAIR NO
x
Ozone Season permit
2663
willshall
be deemed an operation of law and will not require any further
2664
review.
2665
e)
2666
Recordkeeping and reporting requirements:
2667
1)
Unless otherwise provided, the owner or operator of the CAIR NO
x
Ozone
2668
Seasonaffected
source and each CAIR NO
x
Ozone Seasonaffected
2669
unit at
2670
the source mustshall
keep on site at the source each of the documents
2671
listed in subsections (e)(1)(A) through (e)(1)(E) of this Section for a
2672
period of five years from the date the document is created. This period
2673
may be extended for cause, at any time prior to the end of five years, in
2674
writing by the Agency or USEPA.
2675
A)
2676
The certificate of representation for the CAIR designated
representative for the source and each CAIR NO
x
Ozone
2677
2678
Seasonaffected
unit at the source, all documents that demonstrate
2679
the truth of the statements in the certificate of representation,
2680
provided that the certificate and documents must be retained on
site at the source beyond such five-year period until thesuch
2681
2682
documents are superseded because of the submission of a new
certificate of representation pursuant tounder
40 CFR §
2683
96.313,
2684
changing the CAIR designated representative.
2685
B)
2686
All emissions monitoring information, in accordance with 40 CFR
2687
96, subpart HHHH.
2688
C)
2689
Copies of all reports, compliance certifications, and other
2690
submissions and all records made or required pursuant tounder
the
2691
CAIR NO
x
Ozone Season Trading Program or documents
2692
necessary to demonstrate compliance with the requirements of the
2693
CAIR NO
x
Ozone Season Trading Program or with the
requirements of this Subpart
E
2694
.
2695
D)
2696
Copies of all documents used to complete a CAIR NO
x
Ozone
Season permit application and any other submission or documents
2697
used to demonstrate compliance pursuant to
under
2698
the CAIR NO
x
2699
Ozone Season Trading Program.
2700
E)
2701
Copies of all records and logs for gross electrical output and useful
2702
thermal energy required by Section 225.550 of this Subpart
.
60
2703
2)
The CAIR designated representative of a CAIR NO
x
Ozone Seasonan
2704
2705
affected
source and each CAIR NO
x
Ozone Seasonaffected unit at the
2706
source must submit to the Agency and USEPA the reports and compliance
2707
certifications required pursuant tounder
the CAIR NO
x
Ozone Season
Trading Program, including those pursuant tounder
2708
40 CFR 96, subpart
2709
HHHH and Section 225.550 of this Subpart
.
2710
2711
f)
Liability:
2712
1)
No revision of a permit for a CAIR NO
x
Ozone Seasonan affected
2713
unit
mayshall
excuse any violation of the requirements of this Subpart
E
2714
or the
2715
requirements of the CAIR NO
x
Ozone Season Trading Program.
2716
2)
Each CAIR NO
x
Ozone Seasonaffected source and each CAIR NO
x
Ozone
2717
Seasonaffected
2718
unit mustshall meet the requirements of the CAIR NO
x
2719
Ozone Season Trading Program.
2720
3)
2721
Any provision of the CAIR NO
x
Ozone Season Trading Program that
applies to a CAIR NO
x
Ozone Seasonan affected
2722
source (including any
provision applicable to the CAIR designated representative of a CAIR
2723
NO
x
Ozone Seasonan affected
2724
source) willshall also apply to the owner
and operator of thesuch
CAIR NO
x
Ozone Seasonaffected
2725
source and to
the owner and operator of each CAIR NO
x
Ozone Seasonaffected
2726
unit at
2727
the source.
2728
4)
2729
Any provision of the CAIR NO
x
Ozone Season Trading Program that
applies to a CAIR NO
x
Ozone Seasonan affected
2730
unit (including any
provision applicable to the CAIR designated representative of a CAIR
2731
NO
x
Ozone Seasonan affected
2732
unit) willshall also apply to the owner and
operator of thesuch
CAIR NO
x
Ozone Seasonaffected
unit. Except with
2733
regard to the requirements applicable to affected units with
a common
2734
stack under 40 CFR 96, subpart HHHH, the owner, the operator, and the
2735
CAIR designated representative or alternate designated representative of
2736
an affected unit shall not be liable for any violation by any other affected
2737
unit of which they are not
an owner or operator or the CAIR designated
2738
representative.
2739
2740
5)
The CAIR designated representative of a CAIR NO
x
Ozone Seasonan
2741
affected
unit that has excess emissions in any control period mustshall
2742
2743
surrender the allowances as required for deduction pursuant tounder
40
CFR §
2744
96.354(d)(1).
2745
6)
The owner or operator of a CAIR NO
x
Ozone Seasonan affected
2746
unit that
2747
has excess NO
x
emissions in any control period mustshall pay any fine,
penalty, or assessment or comply with any other remedy imposed pursuant
2748
61
tounder
the Act and 40 CFR §
2749
96.354(d)(2).
2750
g)
2751
Effect on other authorities. No provision of the CAIR NO
x
Ozone Season
Trading Program, a CAIR NO
x
Ozone Season permit application, a CAIR NO
x
2752
Ozone Season
permit, or a retired unit exemption pursuant tounder 40 CFR §
2753
2754
96.305 willshall
be construed as exempting or excluding the owner and operator
and, to the extent applicable, the CAIR designated representative of a CAIR NO
x
2755
Ozone Season
an affected
source or a CAIR NO
x
Ozone Seasonan affected
2756
unit,
2757
from compliance with any other regulation promulgated pursuant tounder
the
2758
CAA, the Act, any State regulation or permit, or a federally enforceable permit.
2759
Section 225.515
2760
Appeal Procedures
2761
2762
The appeal procedures for decisions of USEPA pursuant tounder
the CAIR NO
x
Ozone Season
Trading Program are set forth in 40 CFR 78, as incorporated by reference in Section 225.140 of
2763
2764
this Part
.
2765
Section 225.520
2766
Permit Requirements
2767
2768
a)
Permit requirements:
2769
1)
The owner or operator of each source with a CAIR NO
x
Ozone Seasonan
2770
affected
unit is required to submit:
2771
2772
2773
A)
Aa complete permit application addressing all applicable CAIR
2774
NO
x
Ozone Season Trading Program requirements for a permit
2775
meeting the requirements of this Section 225.520
, applicable to
2776
each CAIR NO
x
Ozone Seasonaffected unit at the source. Each
2777
CAIR NO
x
Ozone Season permit mustshall contain elements
2778
required for a complete CAIR NO
x
Ozone Season permit
2779
application pursuant tounder
subsection (b)(2) of this Section.
2780
B)
Any supplemental information that the Agency determines
2781
necessary in order to review a CAIR permit application and issue
2782
any CAIR permit.
2783
2784
2)
Each CAIR NO
x
Ozone Season permit will be issued pursuant to Section
2785
2786
39 of 39.5 of the Act and willshall
contain federally enforceable
2787
conditions addressing all applicable CAIR NO
x
Ozone Season Trading
2788
Program
requirements and willshall be a complete and segregable portion
2789
of the source’s entire permit pursuant tounder
subsection (a)(1) of this
2790
Section.
2791
2792
3)
No CAIR NO
x
Ozone Season permit mayshall be issued, and no CAIR
NO
x
Ozone Season compliance account mayshall be established for a
2793
2794
CAIR NO
x
Ozone Seasonan affected source, until the Agency and USEPA
62
2795
have received a complete certificate of representation for a CAIR
2796
designated representative pursuant tounder
40 CFR 96, subpart BBBB,
for the CAIR NO
x
Ozone Seasonaffected
source and the CAIR NO
x
2797
2798
Ozone Seasonaffected
unit at the source.
2799
2800
4)
For all CAIR NO
x
Ozone Seasonaffected units that commenced operation
2801
before July 1, 2007, the owner or operator of thesuch
unit must submit a
2802
CAIR NO
x
Ozone Season permit application meeting the requirements of
this Section
2803
225.520
on or before July 1, 2007.
2804
5)
For all affected
2805
units and that commence operation on or after July 1,
200
78
2806
, the owner or operator of thesesuch units must submit applications
2807
for construction and operating permits pursuant to the requirements of
2808
Sections 39 and 39.5 of the Act, as applicable, and 35 Ill. Adm. Code 201,
2809
and thesuch
applications must specify that they are applying for CAIR
NO
x
Ozone Season permits, and must address the CAIR NO
x
Ozone
2810
Season
permit application requirements of this Section 225.520
2811
.
2812
2813
b)
Permit applications:
2814
1)
2815
Duty to apply. The owner or operator of any source with one or more
CAIR NO
x
Ozone Season affected
2816
units mustshall submit to the Agency a
2817
CAIR NO
x
Ozone Season permit application for the source covering each
CAIR NO
x
Ozone Seasonaffected
2818
unit pursuant tounder subsection (b)(2)
2819
of this Section by the applicable deadline in subsection (a)(4) or (a)(5) of
this Section. The owner or operator of any source with one or more CAIR
2820
NO
x
Ozone Seasonaffected
units mustshall reapply for a CAIR NO
x
2821
2822
Ozone Season
permit for the source as required by this Subpart, 35 Ill.
2823
Adm. Code 201, and, as applicable, Sections 39 and 39.5 of the Act.
2824
2)
2825
Information requirements for CAIR NO
x
Ozone Season permit
2826
applications. A complete CAIR NO
x
Ozone Season permit application
2827
mustshall
include the following elements concerning the source for which
2828
the application is submitted:
2829
A)
2830
Identification of the source, including plant name. The ORIS
2831
(Office of Regulatory Information Systems) or facility code
2832
assigned to the source by the Energy Information Administration
2833
mustshall
also be included, if applicable;
2834
B)
Identification of each CAIR NO
x
Ozone Seasonaffected
2835
unit at the
2836
source; and
2837
C)
The compliance requirements applicable to each CAIR NO
x
Ozone
2838
Seasonaffected
2839
unit as set forth in Section 225.510 of this Subpart.
2840
 
63
3)
2841
An application for a CAIR NO
x
Ozone Season permit willshall be treated
as a modification of the CAIR NO
x
Ozone Seasonaffected
2842
source’s
2843
existing federally enforceable permit, if such a permit has been issued for
2844
that source, and willshall
be subject to the same procedural requirements.
2845
When the Agency issues a CAIR NO
x
Ozone Season permit pursuant to
the requirements of this Section
225.520
2846
, it willshall be incorporated into
and become part of that source’s existing federally enforceable permit.
2847
2848
c)
Permit content. Each CAIR permit is deemed to incorporate automatically the
2849
definitions and terms pursuant to Section 225.120 and, upon recordation of
2850
USEPA under 40 CFR 96, Subparts FFFF and GGGG as incorporated by
2851
reference in Section 225.140, every allocation, transfer, or deduction of a CAIR
2852
NO
x
Ozone Season allowance to or from the compliance account of the CAIR
2853
NO
x
Ozone Season source covered by the permit.
2854
2855
Section 225.525
2856
Ozone Season Trading Budget
2857
2858
The CAIR NO
x
Ozone Season Trading budget available for allowance allocations for each
2859
control period willshall
be determined as follows:
2860
a)
2861
The total base CAIR NO
x
Ozone Season Trading budget is 30,701 tons per
2862
control period for the years 2009 through 2014, subject to a reduction for two set-
2863
asides, the NUSA and the CASA. Five percent of the budget willshall
be
2864
allocated to the NUSA and 25 percent willshall
be allocated to the CASA,
2865
resulting in a CAIR NO
x
Ozone Season Trading budget available for allocation of
2866
21,491 tons per control period pursuant to Section 225.540 of this Subpart
. The
2867
requirements of the NUSA are set forth in Section 225.545 of this Subpart
, and
2868
the requirements of the CASA are set forth in Sections 225.555 through 225.570
2869
of this Subpart
.
2870
b)
2871
The total base CAIR NO
x
Ozone Season Trading budget is 28,981 tons per
2872
control period for the year 2015 and thereafter, subject to a reduction for two set-
2873
asides, the NUSA and the CASA. Five percent of the budget willshall
be
2874
allocated to the NUSA and 25 percent willshall
be allocated to the CASA,
2875
resulting, in a CAIR NO
x
Ozone Season Trading budget available for allocation
2876
of 20,287 tons per control period pursuant to Section 225.540 of this Subpart
.
2877
c)
2878
If USEPA adjusts the total base CAIR NO
x
Ozone Season Trading budget for any
2879
reason, the Agency willshall
adjust the base CAIR NO
x
Ozone Season Trading
2880
budget CAIR NO
x
Ozone Season Trading budget available for allocation,
2881
accordingly.
2882
Section 225.530
2883
Timing for Ozone Season Allocations
2884
a)
No later thanBy
July 31, 2007October 31, 2006
2885
, the Agency willshall submit to
2886
USEPA the CAIR NO
x
Ozone Season allowance allocations, in accordance with
64
2887
Sections 225.535 and 225.540 of this Subpart
for the 2009, 2010, and 2011
2888
control periods.
2889
b)
By OctoberJuly
31
, 20082009
2890
, and OctoberJuly 31 of each year thereafter, the
2891
Agency willshall
submit to USEPA the CAIR NO
x
Ozone Season allowance
2892
allocations in accordance with Sections 225.535 and 225.540 of this Subpart
, for
the control period fourthree
2893
years after the year of the applicable deadline for
submission pursuant tounder
this Section 225.530
2894
. For example, on July 31,
20082009
2895
, the Agency willshall submit to USEPA the allocation for the 2012
2896
control period.
2897
c)
The Agency willshall
allocate allowances from the NUSA to CAIR NO
x
Ozone
2898
Seasonaffected
2899
units that commence commercial operation on or after May 1,
2006. The Agency willshall
report these allocations to USEPA by July
2900
31November
15
ofafter the applicable control period. For example, on July 31,
2901
2902
2009November
15, 2009, the Agency willshall submit to USEPA the allocations
2903
from the NUSA
for the 2009 control period.
2904
2905
d)
The Agency willshall
allocate allowances from the CASA to energy efficiency,
2906
renewable energy, and clean technology projects pursuant to the criteria in
2907
Sections 225.555 through 225.570 of this Subpart
. The Agency willshall report
2908
these allocations to USEPA by OctoberDecember
1 of each year. For example,
on October 1, 2009December
1, 2010
2909
, the Agency willshall submit to USEPA the
allocations from the CASA for the 20092010
2910
control period, based on reductions
2911
made in the 20082009
control period.
2912
Section 225.535
2913
Methodology for Calculating Ozone Season Allocations
2914
The Agency willshall
calculate converted gross electrical output (CGO), in MWh, for each CAIR
2915
NO
x
Ozone Seasonaffected
2916
unit that has operated during at least one control period prior to the
2917
calendar year in which the Agency reports the allocations to USEPA as follows:
2918
a)
For control periods 2009, 2010, and 2011, the owner or operator of
the unit’s
2919
must submit in writing to the Agency by June 1, 2007, a statement that either
2920
2921
gross electrical output data or heat input is to be used to calculate
converted gross
electrical output (CGO)
. The data shall be used calculate converted gross
2922
electrical output pursuant to either subsection (a)(1) or (a)(2) of this Section
2923
:
2924
2925
1)
Gross electrical output.
If the unit has four or five control periods of data,
2926
then the gross electrical output (GO) willshall
be the average of the unit’s
2927
three highest gross electrical outputs from the 2001, 2002, 2003, 2004, or
2928
2005 control periods. If the unit has three or fewer control periods of
2929
gross electrical outputs, the gross electrical output willshall
be the average
2930
of those control periods. If the unit does not have gross electrical output
for the 2004 and 2005 control periods, the gross electrical output willshall
2931
be the gross electrical output from the 2005 control period. If the unit
2932
65
does not have gross electrical output, then heat input shall be used
2933
2934
pursuant to subsection (a)(2) of this Section.
If a generator is served by
2935
two or more units, then the gross electrical output of the generator
2936
willshall
be attributed to each unit in proportion to the unit’s share of the
total control period heat input of thesesuch
2937
units for the control period.
2938
The unit’s converted gross electrical output willshall
be calculated as
2939
follows:
2940
A)
2941
If the unit is coal-fired:
2942
CGO (in MWh) = GO
×
MWh
×
1.0;
2943
B)
2944
If the unit is oil-fired:
CGO (in MWh) = GO
×
MWh
×
0.6; or
2945
2946
C)
2947
If the unit is neither coal-fired nor oil-fired:
2948
CGO (in MWh) = GO
×
MWh
×
0.4.
2949
2)
If gross electrical output is not provided to the Agency,
hH
eat input. (HI)
2950
shall be used
2951
. If the unit has four or five control periods of data, the
2952
average of the unit’s three highest control period heat inputs from 2001,
2953
2002, 2003, 2004 or 2005 willshall
be used. If the unit has heat input from
2954
the 2003, 2004, or 2005 control periods, the heat input shall be the average
2955
of those control periods. If the unit does not have heat input from the
2956
2004 and 2005 control periods, the heat input from the 2005 control period
2957
willshall
be used. The unit’s converted gross electrical output willshall be
2958
calculated as follows:
2959
A)
2960
If the unit is coal-fired:
2961
CGO (in MWh) = HI (in mmBtu)
×
0.0967;
2962
B)
2963
If the unit is oil-fired:
2964
CGO (in MWh) = HI (in mmBtu)
×
0.0580; or
2965
C)
2966
If the unit is neither coal-fired nor oil-fired:
2967
CGO (in MWh) = HI (in mmBtu)
×
0.0387.
2968
b)
For control periods 2012 and 2013, the owner or operator of the unit must submit
2969
in writing to the Agency by June 1, 2008, a statement that either gross electrical
2970
output data or heat input data be used to calculate the unit’s converted gross
2971
electrical output. The unit’s converted gross electrical output shall be calculated
2972
pursuant to either subsection (b)(1) or (b)(2) of this Section:
2973
2974
1)
Gross electrical output. The average of the unit’s two most recent years of
2975
control period gross electrical output, if available; otherwise it will be the
2976
unit’s most recent control period’s gross electrical output. If a generator is
2977
served by two or more units, the gross electrical output of the generator
2978
66
shall be attributed to each unit in proportion to the unit’s share of the total
2979
control period heat input of such units for the control period. The unit’s
2980
converted gross electrical output shall be calculated as follows:
2981
2982
A)
If the unit is coal-fired:
2983
CGO (in MWh) = GO
×
MWh
×
1.0;
2984
2985
B)
If the unit is oil-fired:
2986
CGO (in MWh) = GO
×
MWh
×
0.6;
2987
2988
C)
If the unit is neither coal-fired nor oil-fired:
2989
CGO (in MWh) = GO
×
MWh
×
0.4.
2990
2991
2)
Heat input. The average of the unit’s two most recent years of control
2992
period heat input; otherwise the unit’s most recent control period’s heat
2993
input, e.g. for the 2012 control period the average of the unit’s heat input
2994
from the 2006 and 2007 control periods. If the unit does not have heat
2995
input from the 2006 and 2007 control periods, the heat input from the
2996
2007 control period shall be used. The unit’s converted gross electrical
2997
output shall be calculated as follows:
2998
2999
A)
If the unit is coal-fired:
3000
CGO (in MWh) = HI (in mmBtu)
×
0.0967;
3001
3002
B)
If the unit is oil-fired:
3003
CGO (in MWh) = HI (in mmBtu)
×
0.0580; or
3004
3005
C)
If the unit is neither coal-fired nor oil-fired:
3006
CGO (in MWh) = HI (in mmBtu)
×
0.0387.
3007
3008
3009
c)
For control period 20142012 and thereafter, the unit’s gross electrical output
3010
willshall
be the average of the unit’s two most recent control period’s gross
3011
electrical output, if available, otherwise it will be
the unit’s most recent control
3012
period gross electrical output. If a generator is served by two or more units, the
3013
gross electrical output of the generator willshall
be attributed to each unit in
proportion to the unit’s share of the total control period heat input of thesesuch
3014
units for the control period. The unit’s converted gross electrical output
will
shall
3015
3016
be calculated as follows:
3017
1)
3018
If the unit is coal-fired:
3019
CGO (in MWh) = GO
×
1.0;
3020
2)
3021
If the unit is oil-fired:
3022
CGO (in MWh) = GO
×
0.6; or
3023
3)
3024
If the unit is neither coal-fired nor oil-fired:
67
3025
CGO (in MWh) = GO
×
0.4.
3026
dc
)
3027
For a unit that is a combustion turbine or boiler and has equipment used to
3028
produce electricity and useful thermal energy for industrial, commercial, heating,
or cooling purposes through the sequential use of energy, the Agency willshall
3029
3030
add the converted gross electrical output calculated for electricity pursuant to
subsections (a),
3031
or (b), or (c) of this Section to the converted useful thermal
3032
energy (CUTE) to determine the total converted gross electrical output for the unit
3033
(TCGO). The Agency willshall
determine the converted useful thermal energy by
3034
using the average of the unit’s control period useful thermal energy for the prior
3035
two control periods, if available, otherwise the unit’s control period useful
3036
thermal output for the prior year willshall
be used. The converted useful thermal
3037
energy willshall
be determined using the following equations:
3038
1)
3039
If the unit is coal-fired:
3040
CUTE (in MWh) = UTE (in mmBtu)
×
0.2930;
3041
2)
3042
If the unit is oil-fired:
3043
CUTE (in MWh) = UTE (in mmBtu)
×
0.1758; or
3044
3)
3045
If the unit is neither coal-fired nor oil-fired:
3046
CUTE (in MWh) = UTE (in mmBtu)
×
0.1172.
3047
ed
)
The CAIR NO
x
Ozone Seasonaffected
3048
unit’s converted gross electrical output and
converted useful thermal energy in subsections (a)(1), (b)(1)
, and
3049
(c), and (d) of
3050
this Section for each control period willshall
be based on the best available data
reported or available to the Agency for the CAIR NO
x
Ozone Seasonaffected
3051
unit
3052
pursuant to the provisions of Section 225.550 of this Subpart
.
3053
f-e
)
The CAIR NO
x
Ozone Seasonaffected
unit’s heat input in subsections (a)(2) and
3054
3055
(b)(2)
of this Section for each control period willshall be determined in
accordance with 40 CFR 75, as incorporated by reference in Section 225.140 of
3056
3057
this Part
.
3058
Section 225.540
3059
Ozone Season Allocations
3060
a)
3061
For the 2009 control period, and each control period thereafter, the Agency
willshall
allocate CAIR NO
x
Ozone Season allowances to all CAIR NO
x
Ozone
3062
3063
Seasonaffected
units in Illinois for which the Agency has calculated the total
converted gross electrical output
, including converted useful thermal energy, if
3064
any, as determined inpursuant
to
3065
Section 225.535 of this Subpart, a total amount
3066
of CAIR NO
x
Ozone Season allowances equal to tons of NO
x
emissions in the
3067
CAIR NO
x
Ozone Season Trading budget available for allocation as determined
3068
in Section 225.525 of this Subpart
and allocated pursuant to this Section 225.540
3069
of this Subpart
.
3070
68
3071
b)
The Agency willshall
allocate CAIR NO
x
Ozone Season allowances to each
3072
CAIR NO
x
Ozone Seasonaffected unit on a pro-rata basis using the unit’s total
converted gross electrical output calculated pursuant to Section 225.535 of
this
3073
Subpart
. If there are insufficient allowances to allocate whole allowances
pro-
3074
3075
rata
, thesesuch unallocated allowances willshall be retained by the Agency and
3076
willshall
be available for allocation in later control periods.
3077
Section 225.545
3078
New Unit Set-Aside (NUSA)
3079
3080
For the 2009 control period and each control period thereafter, the Agency willshall
allocate
CAIR NO
x
Ozone Season allowances from the NUSA to CAIR NO
x
Ozone Seasonaffected
3081
units
3082
that commenced commercial operation on or after May 1, 2006, and do not yet have an
3083
allocation for the particular control period pursuant to Section 225.540 of this Subpart
, in
3084
accordance with the following procedures:
3085
a)
3086
Beginning with the 2009 control period and each control period thereafter, the
3087
Agency willshall
establish a separate NUSA for each control period. Each new
3088
unit set-aside willshall
be allocated CAIR NO
x
Ozone Season allowances equal to
3089
5 percent of the amount of tons of NO
x
emissions in the base CAIR NO
x
Ozone
3090
Season Trading budget in Section 225.525 of this Subpart
.
3091
b)
The CAIR designated representative of such
a new CAIR NO
x
Ozone Seasonan
3092
3093
affected
unit may submit to the Agency a request, in a format specified by the
3094
Agency, to be allocated CAIR NO
x
Ozone Season allowances from the NUSA
3095
starting with the first control period after the control period
in which the new unit
3096
commences commercial operation and until the first control period for which the
unit may use CAIR NO
x
Ozone Season allowances allocated to the unit pursuant
3097
3098
tounder
Section 225.540 of this Subpart. The NUSA allowance allocation request
3099
may only be submitted after a new unit has operated during one control period,
and no later than March 1 of
October 15 after
3100
the control period for which
3101
allowances from the NUSA are being requested.
3102
c)
3103
In a NUSA allowance allocation request pursuant tounder
subsection (b) of this
Section, the CAIR designated representative must provideinclude
3104
in its request
3105
must provide in its request
the information for the gross electrical output and
useful thermal energy, if any, for the new CAIR NO
x
Ozone Seasonaffected
3106
unit
3107
for that control period.
3108
d)
The Agency willshall
allocate allowances from the NUSA to a new CAIR NO
x
3109
Ozone Seasonaffected
3110
unit using the following procedures:
3111
1)
For each new CAIR NO
x
Ozone Seasonaffected
unit that has operated
3112
during at least one control period
3113
, the unit’s gross electrical output for the
3114
most recent control period, willshall
be used to calculate the unit’s gross
3115
electrical output. If a generator is served by two or more units, the gross
3116
electrical output of the generator willshall
be attributed to each unit in
69
3117
proportion to the unit’s share of the total control period heat input of
thesesuch
3118
units for the control period. The new unit’s converted gross
3119
electrical output willshall
be calculated as follows:
3120
A)
3121
If the unit is coal-fired:
3122
CGO (in MWh) = GO
×
1.0;
3123
B)
3124
If the unit is oil-fired:
3125
CGO (in MWh) = GO
×
0.6; or
3126
C)
3127
If the unit is neither coal-fired nor oil-fired:
3128
CGO (in MWh) = GO
×
0.4.
3129
2)
3130
If the unit is a combustion turbine or boiler and has equipment used to
3131
produce electricity and useful thermal energy for industrial, commercial,
3132
heating, or cooling purposes through the sequential use of energy, the
3133
Agency willshall
add the converted gross electrical output calculated for
electricity pursuant to subsection (dc
3134
)(1) of this Section to the converted
3135
useful thermal energy to determine the total converted gross electrical
3136
output for the unit. The Agency willshall
determine the converted useful
3137
thermal energy using the unit’s useful thermal energy for the most recent
3138
control period. The converted useful thermal energy willshall
be
3139
determined using the following equations:
3140
A)
3141
If the unit is coal-fired:
3142
CUTE (in MWh) = UTE (in mmBtu)
×
0.2930;
3143
B)
3144
If the unit is oil-fired:
3145
CUTE (in MWh) = UTE (in mmBtu)
×
0.1758; or
3146
C)
3147
If the unit is neither coal-fired nor oil-fired:
3148
CUTE (in MWh) = UTE (in mmBtu)
×
0.1172.
3149
3)
3150
The gross electrical output and useful thermal energy in subsections (d)(1)
3151
and (d)(2) of this Section for the control period in each year willshall
be
3152
based on the best available data reported or available to the Agency for the
CAIR NO
x
Ozone Seasonaffected
3153
unit pursuant to the provisions of
3154
Section 225.550 of this Subpart
.
3155
3156
4)
The Agency willshall
determine a unit’s un-prorated allocation (
UA
y
)
3157
using the unit’s converted gross electrical output plus the unit’s converted
3158
useful thermal energy, if any, calculated in subsections (d)(1) and (d)(2) of
3159
this Section, converted to approximate NO
x
tons (the unit’s un-prorated
3160
allocation), as follows:
3161
70
2000lbs / ton
TCGO
(1.0lbs / MWh)
UA
y
y
×
3162
=
3163
3164
Where:
3165
UA
y
=
un-prorated allocation to a new CAIR NO
x
3166
Ozone Seasonaffected
3167
unit.
TCGO
y
=
3168
total converted gross electrical output for a
new CAIR NO
x
Ozone Seasonaffected
3169
unit.
3170
3171
5)
The Agency willshall
allocate CAIR NO
x
Ozone Season allowances from
3172
the NUSA to new CAIR NO
x
Ozone Seasonaffected units as follows:
3173
A)
3174
If the NUSA for the control period for which CAIR NO
x
Ozone
3175
Season allowances are requested has a number of allowances
3176
greater than or equal to the total un-prorated allocations for all new
3177
unitsunit’s
requesting allowances, the Agency willshall allocate the
3178
number of allowances using the un-prorated allocation determined
for that unit pursuant toin
subsection (d)(4) of this Section. If there
3179
are insufficient allowances to allocate whole allowances, such
3180
unallocated allowances shall be retained by the Agency and shall
3181
be available for allocation in a later control
period.
3182
3183
B)
3184
If the NUSA for the control period for which the allowances are
3185
requested has a number of CAIR NO
x
Ozone Season allowances
less than the total un-prorated allocation to all new
CAIR NO
x
3186
3187
Ozone Season
affected units requesting allocations, the Agency
willshall
allocate the available allowances for new CAIR NO
x
3188
Ozone Seasonaffected
3189
units on a pro-rata basis, using the un-
3190
prorated allocation determined for that unit pursuant to subsection
3191
(d)(4) of this Section. If there are insufficient allowances to
3192
allocate whole allowances, thesuch
unallocated allowances
3193
willshall
be retained by the Agency and willshall be available for
3194
allocation in a later control period.
3195
C)
3196
If the gross electrical output or useful thermal energy reported to
3197
the Agency pursuant to subsection (d) of this Section is later
3198
determined to be greater than the unit’s actual gross electrical
3199
output or useful thermal energy for the applicable control period,
3200
the Agency willshall
reduce the unit’s allocation from the NUSA
3201
for the current control period to account for the excess allowances
3202
allocated in the prior control period or periods.
3203
e)
The Agency willshall
review each NUSA allowance allocation request pursuant
3204
tounder
subsection (b) of this Section. The Agency willshall
3205
accept a NUSA
 
71
3206
allowance allocation request only if the request meets, or is adjusted by the
Agency as necessary to meet, the requirements of this Section
225.545
3207
.
3208
f)
By June 1 ofNovember
8 after the applicable control period, the Agency willshall
3209
3210
notify each CAIR designated representative that submitted a NUSA allowance
3211
request of the amount of CAIR NO
x
Ozone Season allowances from the NUSA, if
3212
any, allocated for the control period to the new unit covered by the request.
3213
3214
g)
The Agency willshall
allocate CAIR NO
x
Ozone Season allowances to new units
3215
from the NUSA no later than July 31 ofNovember
15 after the applicable control
3216
period.
3217
h)
After a new CAIR NO
x
Ozone Seasonaffected
3218
unit has operated in one control
period, it becomes an existing unit for the purposes of Section 225.540 of this
3219
3220
Subpart
only, and the Agency willshall allocate CAIR NO
x
Ozone Season
3221
allowances for that unit, for the control period commencing four years in the
future pursuant to Section 225.540 of this Subpart
. The new CAIR NO
x
Ozone
3222
Seasonaffected
3223
unit willshall continue to receive CAIR NO
x
Ozone Season
3224
allowances from the NUSA according to this Section until the unit is eligible to
3225
use the CAIR NO
x
Ozone Season allowances allocated to the unit pursuant to
3226
Section 225.540 of this Subpart
.
3227
i)
3228
If, after the completion of the procedures in subsection (c) of this Section for a
3229
control period any unallocated CAIR NO
x
Ozone Season allowances remain in
3230
the NUSA for the control period, the Agency willshall
, at a minimum, accrue
3231
those CAIR NO
x
Ozone Season allowances for future control period allocations to
3232
new CAIR NO
x
Ozone Seasonaffected units. The Agency may from time to time
3233
elect to retire CAIR NO
x
Ozone Season allowances in the NUSA that are in
3234
excess of 7,245 for the purposes of continued progress toward attainment and
3235
maintenance of National Ambient Air Quality Standards pursuant to the CAA.
3236
Section 225.550
3237
Monitoring, Recordkeeping and Reporting Requirements for Gross
3238
Electrical Output and Useful Thermal Energy
3239
a)
3240
By January 1, 2007, or by the date of commencing commercial operation,
whichever is later, the owner or operator of a CAIR NO
x
Ozone Seasonan
3241
affected
unit mustshall install, calibrate, maintain, and operate a system for
3242
3243
measuring gross electrical outputwattmeter
; and mustshall measure gross
electrical output in MW-hrsmegawatt-hours
on a continuous basis; and mustshall
3244
3245
record the output of the measurement systemwattmeter
. If a generator is served
3246
by two or more units, the information to determine each unit’s heat input for that
3247
control period mustshall
also be recorded, so as to allow each unit’s share of gross
3248
electrical output to be determined. If heat input data is used, the owner or
3249
operator mustshall
comply with the applicable provisions 40 CFR 75, as
3250
incorporated by reference in Section 225.140 of this Part
.
3251
72
b)
For a CAIR NO
x
Ozone Seasonan affected
3252
unit that is a cogeneration unit by
January 1, 2007, or by the date the CAIR NO
x
Ozone Seasonaffected
3253
unit
3254
commences to produce useful thermal energy, whichever is later, the owner or
operator of a CAIR NO
x
Ozone Seasonan affected
3255
unit with cogeneration
3256
capabilities mustshall
install, calibrate, maintain, and operate meters for steam
3257
flow in lbs/hr, temperature in degrees Fahrenheit, and pressure in PSI, to measure
3258
and record the useful thermal energy that is produced, in mmBtu/hr, on a
continuous basis. Owners and operators of aCAIR NO
x
Ozone Seasonan affected
3259
3260
unit that produces useful thermal energy but uses an energy transfer medium other
than steam, e.g., hot water
3261
,
or glycol, mustshall install, calibrate, maintain, and
3262
operate the necessary meters to measure and record the necessary data to express
3263
the useful thermal energy produced, in mmBtu/hr, on a continuous basis. If the
3264
CAIR NO
x
Ozone Seasonaffected unit ceases to produce useful thermal energy,
the owner or operator may cease operation of the
3265
se
meters, provided that
operation of such meters mustshall
be resumed if the CAIR NO
x
Ozone
3266
3267
Seasonaffected
unit resumes production of useful thermal energy.
3268
c)
By
September 30, 2006, tT
he owner or operator of a CAIR NO
x
Ozone Seasonan
3269
affected
unit mustshall report to the Agency
:
3270
3271
1)
3272
By June 1, 2007,
the gross electrical output for control periods 2001,
3273
2002, 2003, 2004 and 2005, if available, and, the unit’s useful thermal
energy data, if applicable. If gross electric output is not available, heat
3274
input shall be used for control periods 2001, 2002, 2003, 2004, and 2005
3275
3276
that gross electrical output is not available.
If a generator is served by two
3277
or more units, the documentation needed to determine each unit’s share of
the heat input of such units for that control period mustshall
3278
also be
submitted. If heat input data is used, the owner or operator mustshall
3279
3280
comply with the applicable provisions 40 CFR 75, as incorporated by
reference in Section 225.140 of this Part
.
3281
3282
2)
By June 1, 2008, the gross electrical output for control periods 2006 and
3283
2007, if available, and the unit’s useful thermal energy data, if applicable.
3284
If a generator is served by two or more units, the documentation needed to
3285
determine each unit’s share of the heat input of such units for that control
3286
period must also be submitted. If heat input data is used, the owner or
3287
operator must comply witht he applicable provisions of 40 CFR 75, as
3288
incorporated by reference in Section 225.140.
3289
3290
3291
d)
Beginning with calendar year 20082007
3292
, the CAIR designated representative of
3293
the CAIR NO
x
Ozone Seasonaffected unit mustshall submit to the Agency
quarterly, by no later than January 31,
April 30, July 31, and
October 31, and
3294
January 31
of each year, information for the CAIR NO
x
Ozone Seasonaffected
3295
unit’s gross electrical output, on a monthly basis for the prior quarter
3296
, and, if
3297
applicable, the unit’s useful thermal energy for each month.
73
3298
e)
The owner or operator of a CAIR NO
x
Ozone Seasonan affected
unit mustshall
3299
3300
maintain on-site the monitoring plan detailing the monitoring system,
maintenance of the monitoring system, including quality assurance activities.
3301
pursuant to the requirements of 40 CFR 60 and 75, including the applicable
3302
provisions for the measurement of gross electrical output for the CAIR NO
x
3303
Ozone Season trading program and, if applicable
,
for new units. The monitoring
3304
plan must include, but is not limited to:
3305
3306
1)
A description of the system to be used for the measurement of gross
3307
electrical output,
including a list of any data logging devices, solid-state
3308
kW meters, rotating kW meters, electromechanical kW meters, current
3309
transformers, potential transformers, pressure taps, flow venture, orifice
3310
plates, flow nozzles, vortex meters, turbine meters, pressure transmitters,
3311
differential pressure transmitters, termperature transmitters,
3312
thermocouples, and resistance temperature detectors.
3313
3314
2)
A certification statement by the CAIR designated representative tha
t all
3315
components of the gross electrical output system have been tested to be
3316
accurate within three percent and that the gross electrical output system is
3317
accurate to within ten percent.
3318
3319
f)
The owner or operator of a CAIR NO
x
Ozone Seasonan affected
unit mustshall
3320
3321
retain records for at least 5 years from the date the record is created or the data
3322
collected in subsections (a) and (b) of this Section, and
the reports submitted to
3323
the Agency and USEPA in accordance with subsections (c) and (d) of this
Section. The owner or operator of a CAIR NO
x
Ozone Seasonan affected
3324
unit
3325
mustshall
retain the monitoring plan required in subsection (e) of this Section for
3326
at least five years from the date that it is replaced by a new or revised monitoring
3327
plan.
3328
Section 225.555
3329
Clean Air Set-Aside (CASA)
3330
a)
3331
A project sponsor may apply for allowances from the CASA for sponsoring an
3332
energy efficiency and conservation, renewable energy, or clean technology
3333
project as set forth in
Section 225.560 of this Subpart by submitting the
3334
application required by Section 225.570 of this Subpart
.
3335
b)
Notwithstanding subsection (a) of this Section, a project sponsor with a CAIR
3336
NO
x
Ozone Seasonan affected
3337
source that is out of compliance with this Subpart
3338
for a given control period may not apply for allowances from the CASA for that
3339
control period. If a source receives CAIR NO
x
allowances from CASA and then
3340
is subsequently found to have been out of compliance with this Subpart for the
3341
applicable control period or periods, the project sponsor must restore the CAIR
3342
NO
x
allowances that it received pursuant to its CASA request or an equivalent
3343
number of CAIR NO
x
allowances to the CASA within six months of receipt of an
74
Agency notice that NO
x
allowances must be restoredfinding of noncompliance
3344
.
3345
These allowances willshall
be assigned to the fund from which they were
3346
distributed.
3347
c)
The Agency will not act as a mediator in situations where more than one project
3348
sponser requests CAIR NO
x
allowances for the same project. If more than one
3349
project sponsor
submits an application for allowances for the same project for the
3350
same control period, the Agency shall reject all such applications.
3351
3352
3353
d
)
CAIR NO
x
allowances from CASA willshall be allocated in accordance with the
3354
procedures in Section 225.575 of this Subpart
.
3355
de
)
3356
The project sponsor may submit an application that aggregates two or more
3357
projects under a CASA project category that would individually result in less than
3358
one allowance, but that equal at a minimum one whole allowance when
aggregated. The Agency
shall not allocate allowances for projects totaling less
3359
than one whole allowance after rounding.
3360
3361
Section 225.560
3362
Energy Efficiency and Conservation, Renewable Energy, and Clean
3363
Technology Projects
3364
a)
3365
Energy efficiency and conservation project means any of the following projects
3366
implemented in Illinois:
3367
1)
3368
Demand side management projects that reduce the overall power demand
3369
by using less energy include:
3370
A)
3371
Smart building management software that more efficiently
3372
regulates power flows.
3373
B)
3374
The use of or replacement to high efficiency motors, pumps,
3375
compressors, or steam systems.
3376
C)
Lighting retrofits.
3377
3378
2)
3379
Energy efficient new building construction projects include:
3380
A)
3381
ENERGY STAR qualified new home projects.
3382
3383
B)
Measures to reduce or
conserve energy consumption beyond the
3384
requirements of the Illinois Energy Conservation Code for
3385
Commercial Buildings (20 ILCS 687/6-3).
3386
C)
3387
New residential construction projects that qualify for Energy
3388
Efficient Tax Incentives pursuant tounder
the Energy Policy Act of
2005, 42 U.S.C. §
3389
15801 (2005).
75
3390
3)
3391
Supply-side energy efficiency projects include projects implemented to
3392
improve the efficiency in electricity generation by coal-fired power plants,
3393
and the efficiency of electrical transmission and distribution systems.
3394
4)
3395
Highly efficient power generation project, such as, but not limited to,
3396
combined cycle projects, combined heat and power, and microturbines.
To be considered a highly efficient power generation project pursuant
3397
tounder
this subsection (a)(4), a project must meet the thresholds and
3398
3399
criteria
listed below:
3400
A)
3401
For combined heat and power projects generating both electricity
3402
and useful thermal energy for space, water, or industrial process
heat, a rated-energy efficiency of at least 60 percent
and is not a
3403
3404
CAIR NO
x
Ozone Season unit.
3405
B)
3406
For combined cycle projects rated at greater than 0.50 MW, a
3407
rated-energy efficiency of at least 50 percent.
3408
C)
3409
For microturbine projects rated at or below 0.50 MW and all other
3410
projects rated-energy efficiency of at least 40 percent.
3411
b)
3412
Renewable energy unit means any of the following projects implemented in
3413
Illinois:
3414
1)
3415
Zero-emission electric generating units, including wind, solar (thermal or
3416
photovoltaic), and hydropower projects. Eligible hydropower plants are
3417
restricted to new generators, that are not replacements of existing
3418
generators, that commence operation on or after January 1, 2006, and do
3419
not involve the significant expansion of an existing dam or the
3420
construction of a new dam.
3421
2)
3422
Renewable energy units are those units that generate electricity using more
3423
than 50 percent of the heat input, on an annual basis, from dedicated crops
3424
grown for energy production or the capture systems for methane gas from
3425
landfills, water treatment plants or sewage treatment plants, and organic
3426
waste biomass, and other similar sources of non-fossil fuel energy.
3427
Renewable energy projects do not include energy from incineration by
3428
burning or heating of waste wood, tires, garbage, general household,
3429
institutional lunchroom or office waste, landscape waste, or construction
3430
or demolition debris.
3431
c)
3432
Clean technology project for reducing emissions from producing electricity and
3433
useful thermal energy means any of the following projects implemented in
3434
Illinois:
3435
76
1)
3436
Air pollution control equipment upgrades for control of NO
x
emissions at
3437
existing coal-fired electric generating unitEGU
s, as follows: installation of
3438
a selective catalytic reduction (SCR) or selective non-catalytic reduction
3439
(SNCR) system, or other emission control technologies. Air pollution
3440
control upgrades do not include the addition of low NO
x
burners, overfired
3441
air techniques, gas reburning techniques, flue gas conditioning techniques
3442
for the control of NO
x
emissions, projects involving upgrades or
replacement of electrostatic precipitators, or addition of
control
3443
equipment, such as
activated carbon injection, or other sorbent
3444
3445
injectionspecifically
used for control of mercury. For this purpose, a unit
3446
willshall
be considered “existing” after it has been in commercial
3447
operation for at least eight years.
3448
3449
2)
Clean coal technologies projects include:
3450
A)
3451
Integrated gasification combined cycle (IGCC) plants.
3452
B)
3453
Fluidized bed coal combustion.
3454
d)
3455
In addition to those projects excluded in subsections (a) through (c) of this
3456
Section, the following projects are also not eEnergy
efficiency and conservation,
3457
renewable energy, or clean technology projects listed in subsection (a) through (c)
3458
of this Section shall not include
:
3459
3460
1)
Nnuclear power projects.;
3461
3462
2)
Pprojects required to meet emission standards or technology requirements
3463
under State or federal law or regulation, except that allowances may be
3464
allocated for projects undertaken pursuant to Section 225.233.
3465
3466
3)
Pprojects used to meet the requirements of a court order or consent decree,
3467
except that allowances may be allocated for:
3468
A)
3469
Emission rates or limits achieved that are lower than what is
3470
required to meet the emission rates or limits for SO
2
or NO
x,
or for
3471
installing a baghouse as provided for in a court order or consent
3472
decree entered into before May 30, 2006.
3473
B)
3474
Projects used to meet the requirements of a court order or consent
3475
decree entered into on or after May 30, 2006, if the court order or
3476
consent decree does not specifically preclude such allocations.
3477
3478
4)
Aa
Supplemental Environmental Project (SEP). CASA allowances shall
3479
not be allocated to such projects.
3480
e)
3481
Applications for projects that that are not specifically listed in subsections (a)
77
through (c) of this Section, and that are not specifically excluded by definition in
3482
3483
subsections (a) through (c) of this Section or by specific exclusion in
subsection
(d) of this Section, may be submitted to the Agency. TheSuch
3484
application
3485
mustshall
designate which category or categories from those listed in subsections
3486
(a)(1) through (c)(2)(B) of this Section best fits the proposed project and the
applicable formula pursuant tounder
3487
Section 225.565(b) of this Section to
calculate the number of allowances that it is requesting. The Agency willshall
3488
3489
determine whether the application is approvable based on a sufficient
3490
demonstration by the project sponsor that the project is a new type of energy
3491
efficiency, renewable energy, or clean technology project, similar in its effects as
3492
the projects specifically listed in subsection (a) through (c) of this Section.
3493
f)
3494
Early adopter projects include projects that meet the criteria for any energy
3495
efficiency and conservation, renewable energy, or clean technology projects listed
3496
in subsections (a) , (b), (c), and (e) of this Section and commence construction
3497
between July 1, 2006, and December 31, 2012.
3498
Section 225.565
3499
CASA Allowances
3500
3501
a)
The CAIR NO
x
allowances for the CASA for each control period willshall be
3502
assigned to the following categories of projects:
3503
Phase I
Phase II
3504
3505
(2009-2014)
(2015 and
3506
thereafter)
3507
3508
1)
Energy Efficiency and Conservation/
3684
3479
3509
Renewable Energy
3510
3511
2)
Air Pollution Control Equipment
1535
1448
3512
Upgrades
3513
3514
3)
Clean Coal Technology Projects
1842
1738
3515
3516
4)
Early Adopters
614
580
3517
b)
3518
The following formulas mustshall
be used to determine the number of CASA
3519
allowances that may be allocated to a project per control period:
3520
1)
3521
For an energy efficiency and conservation project pursuant to Sections
225.560(a)(1) through (a)(
3522
4)(A)3)
of this Subpart, the number of
3523
allowances mustshall
be calculated using the number of megawatt hours of
3524
electricity that was not consumed during a control period and the
3525
following formula:
3526
A
=
3527
(MWh
c
)
×
(1.5 lb/MWh) / 2000 lb
78
3528
3529
Where:
3530
3531
A
=
The number of allowances for a particular project.
MWh
c
=
3532
The number of megawatt hours of electricity
3533
conserved or generated
during a control period by a
3534
project.
3535
2)
3536
For a zero emission electric generating projects pursuant to Section
3537
225.560(b)(1) of this Subpart
, the number of allowances mustshall be
3538
calculated using the number of megawatt hours of electricity generated
3539
during a control period and the following formula:
3540
3541
A
=
(MWh
g
)
×
(2.0 lb/MWh) / 2000 lb
3542
3543
Where:
3544
A
=
3545
The number of allowances for a particular project
MWh
g
=
3546
The number of megawatt hours of electricity
3547
generated during a control period by a project.
3548
3)
For a renewable energy emission unit pursuant to Section 225.560(b)(2) of
3549
this Subpart
, the number of allowances mustshall
3550
be calculated using the
3551
number of megawatt hours of electricity generated during a control period
3552
and the following formula:
3553
3554
A
=
(MWh
g
)
×
(0.5 lb/MWh) / 2000 lb
3555
3556
Where:
3557
A
=
3558
The number of allowances for a particular project.
MWh
g
=
3559
The number of MW hours of electricity generated
3560
during a control period by a project.
3561
4)
3562
For an air pollution control equipment upgrade project pursuant to Section
3563
225.560(c)(1) of this Subpart
, the number of allowances mustshall be
3564
calculated using the emission rate
before and after replacement or
3565
improvement, and the following formula:
3566
3567
A
=
(MWh
g
)
×
0.10
×
(ER
B
lb/MWh - ER
A
lb/MWh) / 2000 lb
3568
3569
Where:
3570
A
=
3571
The number of allowances for a particular project.
MWh
g
=
The number of MWhmegawatt hour
3572
s of electricity
3573
generated during a control period by a project.
79
3574
ER
B
=
Average NO
x
emission rate based on CEMS data
3575
from the most recent two control periods prior to
3576
the replacement or improvement of the control
equipment in lb/MWh
, unless subject to a consent
3577
decree or court order. For units subject to a consent
3578
decree or court order, entered into before May 30,
3579
2006, ER
B
is limited to emission rates or limits that
3580
are lower than the emission rate or limit required in
3581
the consent decree or court order. On or after May
3582
30, 2006, ER
B
is limited to emission rates or limits
3583
specified in the consent decree or court order. If
3584
such limit is not expressed in lb/MWh, the limit
3585
shall be converted into lb/MWh using a heat rate of
3586
10 mmBtu/1 MW.
3587
ER
A
=
3588
Average NO
x
emission rate for the applicable
3589
control period data based on CEMS data in
3590
lb/MWh.
3591
5)
For highly efficient power generation and clean technologyIGCC
3592
projects
pursuant to Sections 225.560(a)(4)(B), (a)(4)(C)
3593
and (c)(2) of this Subpart,
3594
the number of allowances mustshall
be calculated using the number of
3595
megawatt hours of electricity the project generates during a control period
3596
and the following formula:
3597
3598
A
=
(MWh
g
)
×
(1.0 lb/MWh – ER lb/MWh) / 2000 lb
3599
3600
Where:
3601
A
=
3602
The number of allowances for a particular project.
MWh
g
=
3603
The number of megawatt hours of electricity
3604
generated during a control period by a project.
3605
ER
=
Average NO
x
emission rate for the control period
3606
based on CEMS data in 1b/MWh.
3607
6)
3608
For a CASA project that commencesd
construction before December 31,
2012, in addition to the allowances allocated pursuant tounder
3609
subsections
3610
(b)(1) through (b)(5) of this Section, a project sponsor may also request
3611
additional allowances under the early adopter project category pursuant to
Section 225.460(e) of this Section
3612
based on the following formula:
3613
A
=
3614
1.0 + 0.10
×
Σ
A
i
3615
3616
Where:
3617
A
=
3618
The number of allowances for a particular project as
3619
determined in subsections (b)(1) through (b)(5) of
80
3620
this Section.
A
i
=
3621
The number of allowances as determined in
3622
subsection (b)(1), (b)(2), (b)(3), (b)(4) or (b)(5) of
3623
this Section for a given project.
3624
Section 225.570
3625
CASA Applications
3626
a)
3627
A project sponsor may request allowances if the project commenced construction
3628
on or after the dates listed below. The project sponsor may request and be
3629
allocated allowances from more than one CASA category for a project, if
3630
applicable.
3631
1)
3632
Demand side management, energy efficient new construction, and supply
3633
side energy efficiency and conservation projects that commenced
3634
construction on or after January 1, 2003;
3635
2)
Fluidized bed coal combustion projects, highly
efficient power generation
3636
3637
operations projects, or renewable energy emission units, which
3638
commenced construction on or after January 1, 2001; and
3639
3)
3640
All other projects on or after July 1, 2006.
3641
b)
3642
Beginning with the 2009 control period and each control period thereafter, a
3643
project sponsor may request allowances from the CASA. The application must be
3644
submitted to the Agency by May 1 of the control period for which the allowances
3645
are being requested.
3646
3647
c)
The allocation willshall
be based on the electricity conserved or generated in the
3648
control period preceding the calendar year in which the application is submitted.
3649
To apply for a CAIR NO
x
allocation from the CASA, project sponsors must
3650
provide the Agency with the following information:
3651
1)
3652
Identification of the project sponsor, including name, address, type of
organization, certification that the project sponsor has met the definition of
3653
3654
“project sponsor” as set forth in Section 225.130,
and name(s) of the
3655
principals or corporate officials.
3656
2)
3657
The number of the CAIR NO
x
general or compliance account for the
3658
project and the name of the associated CAIR account representative.
3659
3)
3660
A description of the project or projects, location, the role of the project
3661
sponsor in the projects, and a general explanation of how the amount of
3662
energy conserved or generated was measured, verified, and calculated, and
3663
the number of allowances requested and
the with the supporting
3664
calculations. The number of allowances requested willshall
be calculated
using the applicable formula from Section 225.570(b) of this Section
3665
.
81
3666
4)
3667
Detailed information to support the request for allowances, including the
3668
following types of documentation for the measurement and verification of
3669
the NO
x
emissions reductions, electricity generated, or electricity
3670
conserved using established measurement verification procedures, as
3671
applicable. The measurement and verification required willshall
depend
3672
on the type of project proposed.
3673
A)
3674
As applicable, documentation of the project’s base and control
3675
period conditions and resultant base and control period energy
3676
data, using the procedures and methods included in
M&V
3677
Guidelines: Measurement and Verification for Federal Energy
3678
Projects,
incorporated by reference in Section 225.140 of this Part
,
3679
or other method approved by the Agency. Examples include:
3680
i)
3681
Energy consumption and demand profiles;
3682
3683
ii)
Occupancy type;
3684
3685
iii)
Density and periods;
3686
iv)
3687
Space conditions or plant throughput for each operating
3688
period and season. (For example, in a building this would
3689
include the light level and color, space temperature,
3690
humidity and ventilation);
3691
v)
3692
Equipment inventory, nameplate data, location, condition;
3693
and
3694
3695
vi)
Equipment operating practices (schedules and set points,
3696
actual temperatures/pressures).
3697
B)
3698
Emissions data, including, if applicable, CEMS data;
3699
C)
3700
Information for rated–energy efficiency including supporting
3701
documentation and calculations; and
3702
D)
3703
Electricity, in MWh, generated or conserved for the applicable
3704
control period.
3705
5)
3706
Notwithstanding the requirements of subsections (c)(4) of this Section,
3707
applications for fewer than five allowances may propose other reliable and
3708
applicable methods of quantification acceptable to the Agency.
3709
6)
3710
Any additional information requested by the Agency to determine the
3711
correctness of the requested number of allowances, including site
82
3712
information, project specifications, supporting calculations, operating
3713
procedures, and maintenance procedures.
3714
7)
3715
The following certification by the responsible official for the project
3716
sponsor and the applicable CAIR account representative for the project:
3717
3718
“I am authorized to make this submission on behalf of the project sponsor
3719
and the holder of the CAIR NO
x
general account or compliance account
3720
for which the submission is made. I certify under penalty of law that I
3721
have personally examined, and am familiar with the statements and
3722
information submitted in this application and all its attachments. Based on
3723
my inquiry of those individuals with primary responsibility for obtaining
3724
the information, I certify that the statements and information are to the
3725
best of my knowledge and belief true, accurate, and complete. I am aware
3726
that there are significant penalties for submitting false statements and
3727
information or omitting required statements and information.”
3728
d)
3729
A project sponsor may request allowances from the CASA for each project a total
3730
number of control periods not to exceed the number of control periods listed
3731
below. After a project has been allocated allowances from CASA, subsequent
3732
requests for the project from the project sponsor mustshall
include the information
3733
required by subsections (c)(1), (c)(2), (c)(3) and (c)(7) of this Section, a
3734
description of any changes, or further improvements made to the project, and
3735
information specified in subsections (c)(5) and (c)(6) as specifically requested by
3736
the Agency.
3737
1)
3738
For energy efficiency and conservation projects (except for efficient
3739
operation and renewable energy projects), for a total of eight control
3740
periods.
3741
2)
3742
For early adopter projects, for a total of ten control periods.
3743
3)
3744
For air pollution control equipment upgrades for a total of 15 control
3745
periods.
3746
43
)
3747
For renewable energy projects, clean coal technology, and highly efficient
3748
power generation projects, for each year that the project is in operation.
3749
e)
3750
A project sponsor must keep copies of all CASA applications and the
3751
documentation used to support the application for at least five years.
3752
Section 225.575
3753
Agency Action on CASA Applications
3754
3755
a)
By SeptemberOctober
1, 2009, and each SeptemberOctober 1 thereafter, the
3756
Agency willshall
determine the total number of allowances that are approvable for
83
3757
allocation to project sponsors based upon the applications submitted pursuant to
3758
Section 225.570 of this
Subpart.
3759
3760
1)
The Agency willshall
determine the number of CAIR NO
x
allowances that
3761
are approvable based on the formulas and the criteria for such projects.
3762
The Agency willshall
notify a project sponsor within 90 days after receipt
3763
of an application if the project is not approvable, the number of
3764
allowances requested is not approvable, or additional information is
3765
needed by the Agency to complete its review of the application.
3766
2)
3767
If the total number of CAIR NO
x
allowances requested for approved
3768
projects is less than or equal to the number of CAIR NO
x
allowances in
3769
the CASA project category, the number of allowances that are approved
3770
shall be allocated to each CAIR NO
x
compliance or general account.
3771
3)
3772
If more CAIR NO
x
allowances are requested than the number of CAIR
NO
x
allowances in a given CASA project category, allowances willshall
3773
3774
be allocated on a pro-rata basis based on the number of allowances
3775
available, subject to further adjustment as provided for by subsection (b)
3776
of this Section. CAIR NO
x
allowances willshall be allocated, transferred,
or used as whole allowances. The number of whole allowances willshall
3777
3778
be determined by rounding down for decimals less than 0.5 and rounding
3779
up for decimals of 0.5 or greater.
3780
3781
b)
For control periods 2011 and thereafter,
Iif there are, after the completion of the
3782
procedures in subsection (a) of this Section for a control period, any CAIR NO
x
3783
allowances not allocated to a CASA project for the control period:
3784
1)
The remaining allowances
will accrue
in each CASA project category will
3785
3786
accrue
up to twice the number of allowances that are assigned to the
project category each control period as set forth in Section 225.565 of this
3787
3788
Subpart
.
3789
2)
For control period 2011 and thereafter,If
any
allowances remain after
3790
allocations pursuant to subsection (a) of this Section, the Agency will
3791
allocate these allowances pro-rata to projects that received fewer
3792
allowances than requested, based on the number of allowances not
3793
allocated but approved by the Agency for the project under CASA. No
3794
project may be allocated more allowances than approved by the Agency
3795
for the applicable
in a project category that are in excess of twice the
3796
number assign for the control period as set forth in Section 225.565
of this
3797
Subpart
shall be redistributed to project categories that have fewer than
3798
twice the number of allowances assigned to that project category for the
3799
3800
control period.
3801
84
3)
For control period 2011 and thereafter,
If any allowances remain after the
3802
3803
allocation of allowances pursuant to subsection (b)(2) of this Section
the
Agency will then distribute pro-rata the remaining
shall then reallocate
3804
allowances to projects that received fewer allowances than requested and
3805
approved on a pro-rata
basis, based on the total number of approved
3806
allowances
for the projectsproject categories that have fewer than twice
3807
the number of allowances assigned to the project category. The pro-rata
3808
distribution will be based on the difference between two times the project
3809
3810
category and the number of allowances that remain in the project category
.
3811
4)
For control period 2011 and thereafter, if after the redistribution of
3812
allowances pursuant to subsection (b)(2) any allowances remain, these
3813
allowances shall be reassigned to project categories that have fewer than
3814
twice
the number of allowances annually assigned to that project category
3815
as set forth in Section 225.565
of this Subpart, after the allocation in
3816
subsection (b)(3) of this Section.
3817
3818
5)
The Agency shall repeat the process of allocating allowances to CASA
3819
projects
that received fewer allowances than requested and approved, and
3820
to reassigning allowances to project categories as set forth in subsections
3821
(b)(2), (b)(3), and (b)(4) of this Section, until no allowances remain to be
3822
reassigned between project categories
and the approved allowance
3823
requests have been filled.
If allowances still remain undistributed after the
3824
allocations and distributions in the above subsections are
3825
3826
completedunallocated
, the Agency may elect to retire any CAIR NO
x
allowances that have not been distributed to any CASA category,remain
3827
after all approved requests for allowances have been met and each project
3828
category has accrued twice the number of allowances assigned for that
3829
project category
3830
to continue progress toward attainment or maintenance of
3831
the National Ambient Air Quality Standards pursuant to the CAA.
 
SERVICE LIST
R06-26
John Knittle, Hearing Officer
Illinois Pollution Control Board
James R. Thompson Center
100 West Randolph St., Suite 11-500
Chicago, IL 60601-3218
Matthew J. Dunn, Division Chief
Office of Attorney General
Environmental Bureau
188 W. Randolph, 20
th
Floor
Chicago, IL 60601
Virginia Yang, Deputy Legal Counsel
Illinois Dept. of Natural Resources
One Natural Resources Way
Springfield, IL 62702-1271
Keith I. Harley
Chicago Legal Clinic
205 West Monroe Street, 4th Floor
Chicago, IL 60606
James T. Harrington
David L. Rieser
Jeremy R. Hojnicki
McGuire Woods LLP
77 West Wacker, Suite 4100
Chicago, IL 60601
William A. Murray
Special Assistant Corporation Counsel
Office of Public Utilities
800 East Monroe
Springfield, IL 62757
S. David Farris
Environmental, Health and Safety
Manager
Office of Public Utilities
201 East Lake Shore Drive
Springfield, IL 62757
Faith E. Bugel
Environmental Law and Policy Center
35 East Wacker Drive, Suite 1300
Chicago, IL 60601
Kathleen C. Bassi
Sheldon A. Zabel
Stephen J. Bonebrake
Schiff Hardin LLP
6600 Sears Tower
233 South Wacker Drive
Chicago, IL 60606
Katherine D. Hodge
N. LaDonna Driver
Hodge Dwyer Zeman
3150 Roland Avenue
Springfield, IL 62705-5776
Bruce Nilles
Sierra Club
122 W. Washington Ave., Suite 830
Madison, WI 53703
Sasha M. Reyes
Steven J. Murawski
One Prudential Plaza, Suite 3500
130 E. Randolph Dr.
Chicago, IL 60601
Daniel McDevitt
Midwest Generation
440 S. LaSalle St., Suite 3500
Chicago, IL 60605
Bill S. Forcade
Katherine M. Rahill
JENNER & BLOCK, LLP
One IBM Plaza
Chicago, IL 60611
James H. Russell
Winston & Strawn, LLP
35 W. Wacker Drive, 40
th
Floor
Chicago, IL 60601
 
STATE OF ILLINOIS
)
)
SS
COUNTY OF SANGAMON
)
)
CERTIFICATE OF SERVICE
I, the undersigned, an attorney, state that I have served electronically the attached
MOTION TO AMEND RULEMAKING PROPOSAL upon the following person:
Dorothy Gunn
Clerk
Illinois Pollution Control Board
James R. Thompson Center
100 West Randolph St., Suite 11-500
Chicago, IL 60601-3218
and mailing it by first-class mail from Springfield, Illinois, with sufficient postage affixed
to the following persons:
SEE ATTACHED SERVICE LIST
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
__________________________
John J. Kim
Managing Attorney
Air Regulatory Unit
Division of Legal Counsel
Dated: November 27, 2006
1021 North Grand Avenue East
Springfield, Illinois 62794-9276
(217) 782-5544

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