TITLE

35 :

ENVIRONMENTAL PROTECTION

SUBTITLE B : AIR POLLUTION

CHAPTER I : POLLUTION CONTROL BOARD

SUBCHAPTER c : EMISSION STANDARDS AND LIMITATIONS

FOR STATIONARY SOURCES

PART 225

CONTROL OF EMISSIONS FROM LARGE COMBUSTION SOURCES

SUBPART A

: GENERAL PROVISIONS

Section

225 .100

Severability

225 .120

Abbreviations and Acronyms

225 .130

Definitions

225 .140

Incorporations by Reference

225 .150

Commence Commercial Operation

SUBPART B

: CONTROL OF MERCURY EMISSIONS

FROM COAL-FIRED ELECTRIC GENERATING UNITS

Section

225 .200

225 .202

225 .205

225 .210

225 .220

225 .230

225 .232

225 .233

225 .234

225 .235

225 .237

225 .238

225 .240

225 .250

Monitoring

225 .260

225 .261

225 .263

225 .265

225 .270

225 .290

225 .295

Purpose

Measurement Methods

Applicability

Compliance Requirements

Clean Air Act Permit Program (CAAPP) Permit Requirements

Emission Standards for EGUs at Existing Sources

Averaging Demonstrations for Existing Sources

Multi-Pollutant Standard (MPS)

Temporary Technology-Based Standard for EGUs at Existing Sources

Units Scheduled for Permanent Shut Down

Emission Standards for New Sources with EGUs

Temporary Technology-Based Standard for New Sources with EGUs

General Monitoring and Reporting Requirements

Initial Certification and Recertification Procedures for Emissions

Out of Control Periods for Emission Monitors

Additional Requirements to Provide Heat Input Data

Monitoring of Gross Electrical Output

Coal Analysis for Input Mercury Levels

Notifications

Recordkeeping and Reporting

Treatment of Mercury Allowances

SUBPART C : CLEAN AIR ACT INTERSTATE

RULE (CAIR) S02 TRADING PROGRAM

Section

225 .300

Purpose

225 .305

Applicability

225 .310

Compliance Requirements

225 .315

Appeal Procedures

225 .320

Permit Requirements

225 .325

Trading Program

SUBPART D : CAIR NOx ANNUAL TRADING PROGRAM

CEc4ovED

MAY 0

9

2007

Pollution

STEOF

Control

ILLINOISBoard

---

Section

225

.400

225 .405

225 .410

225 .415

225 .420

225 .425

225 .430

225

.435

225 .440

225 .445

225 .450

Electrical

225 .455

225 .460

Technology

225 .465

225 .470

225 .475

225 .480

SUBPART E :

Section

225

.500

225 .505

225 .510

225 .515

225 .520

225 .525

225 .530

225 .535

225 .540

225 .545

225 .550

Electrical

225 .555

225

.560

Technology

225 .565

225 .570

225 .575

SUBPART

F :

225 .600

225 .605

225 .610

225 .615

225

.620

225 .625

225 .630

225 .635

Allowances

225 .640

Purpose

Applicability

Compliance Requirements

Appeal

Procedures

Permit

Requirements

Annual Trading Budget

Timing for

Annual Allocations

Methodology for

Calculating Annual Allocations

Annual Allocations

New Unit Set-Aside (NUSA)

Monitoring, Recordkeeping and Reporting Requirements for Gross

Output and Useful Thermal Energy

Clean Air Set-Aside (CASA)

Energy Efficiency and Conservation, Renewable Energy, and Clean

Projects

Clean Air Set-Aside (CASA) Allowances

Clean Air Set-Aside (CASA) Applications

and Rccordkccping

Agency Action on Clean Air Set-Aside (CASA) Applications

Compliance Supplement Pool

CAIR NOx OZONE SEASON TRADING PROGRAM

Purpose

Applicability

Compliance Requirements

Appeal Procedures

Permit Requirements

Ozone Season Trading Budget

Timing for Ozone Season Allocations

Methodology for Calculating Ozone Season Allocations

Ozone Season Allocations

New Unit Set-Aside (NUSA)

Monitoring, Recordkeeping and Reporting

Regmirements

for Gross

Output and Useful Thermal Energy

Clean Air Set-Aside (CASA)

Energy Efficiency

and Conservatioa,

Renewable Energy, and Clean

Projects

Clean Air Set-Aside (CASA) Allowances

Clean Air Set-Aside (CASA) Applications

and Rccor dkecping

Agency Action on Clean Air Set-Aside (CASA) Applications

COMBINED POLLUTANT STANDARDS

Purpose

Applicability

Notice of Intent

Control Technology Requirements and Emissions Standards for Mercury

Emissions Standards for NOx and S02

Control Technology Requirements for NOx, S02, and PM Emissions

Permanent Shut-Downs

Requirements for CAIR S02, CAIR NOx, and CAIR NOx Ozone Season

I

Clean Air Act Requirements

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225 .

A Specified EGUs for Purposes of Subpart F (Midwest

Generation's Coal-Fired Boilers as of July 1, 2006)

AUTHORITY : Implementing and authorized by Section 27 of the Environmental

Protection Act [415 ILCS 5/27] .

SOURCE

: Adopted in R06-25 at 31 Ill

. Reg

. 129, effective December 21, 2006

;

amended

SUBPART

in

A :

R06-26

GENERAL

at

PROVISIONS31

Ill . Reg . , effective

Section 225 .130

Definitions

The following definitions apply for the purposes of this Part . Unless otherwise

defined in this Section or a different meaning for a term is clear from its

context, the terms used in this Part have the meanings specified in 35 Ill . Adm .

Code 211 .

"Agency" means the Illinois Environmental Protection Agency . [415 ILCS

5/3 .105]

"Averaging demonstration" means, with regard to Subpart B of this Part, a

demonstration of compliance that is based on the combined performance of EGUs at

two or more sources .

"Base Emission Rate" means, for a group of EGUs subject to emission standards

for NOx and S02 pursuant to Section 225 .233, the average emission rate of

NOx

or

S02 from the EGUs, in pounds per million Btu heat input, for calendar years 2003

through 2005 (or, for seasonal NOx, the 2003 through 2005 ozone seasons), as

determined from the data collected and quality assured by the USEPA, pursuant to

the 40 CFR 72 and 96 federal Acid Rain and NOx Budget Trading Programs, for the

emissions and heat input of that group of EGUs

.

"Board" means the Illinois Pollution Control Board . [415 ILCS 5/3 .130]

"Boiler" means an enclosed fossil or other fuel-fired combustion device used to

produce heat and to transfer heat to recirculating water, steam, or other

medium .

"Bottoming-cycle cogeneration unit" means a cogeneration unit in which the

energy input to the unit is first used to produce useful thermal energy and at

least some of the reject heat from the useful thermal energy application or

process is then used for electricity production .

"CAIR authorized account representative" means, for the purpose of general

accounts, a responsible natural person who is authorized, in accordance with 40

CFR 96IL subparts BB, FF, BBB, FFF, BBBB, and FFFF to transfer and otherwise

dispose of CAIR NOx, S02, and NOx Ozone Season allowances, as applicable, held

in the CAIR NOx, S02, and NOx Ozone Season general account, and for the purpose

of a CAIR NOx

compliance account, a CAIR S02 Allowance System Tracking account,

or a CAIR NOx Ozone Season compliance account, the CAIR designated

representative of the source .

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"CAIR designated representative" means,, for a CAIR NOx source, a CAIR S02

source, and a CAIR NOx Ozone Season source and each CAIR NOx unit, CAIR S02 unit

and CAIR NOx Ozone Season unit at the source, the natural person who is

---

authorized by the owners and operators of the source and all such units at the

source, in accordance

with

40

CFR 9695

subparts

BB, FF, BBB, FFF, BBBB, and

FFFF as applicable, to represent and

legally bind each owner and operator in

matters pertaining to the CAIR NOx Annual Trading Program, CAIR S02 Trading

Program, and the

CAIR NOx Ozone Season Trading Program, as applicable . For any

unit that is subject to one or more of the following programs

: CAIR NOx Annual

Trading Program, the CAIR S02 Trading Program, the

CAIR NOx Ozone Season Trading

Program, or the federal Acid Rain Program, the designated representative for the

unit must be the same natural person for all programs applicable to the unit .

"CAIR Trading Programs" means the requirements of this Part, and those

provisions of the federal CAIR NOx Annual Season, CAIR 502, or CAIR NOx Ozone

Season Trading Programs set forth in 40 CFR 96, as incorporated by reference in

Section 225 .140 .

"Coal" means any solid fuel classified as anthracite, bituminous, subbituminous,

or lignite by the American Society for Testing and Materials (ASTM) Standard

Specification for Classification of Coals by Rank D388-77, 90, 91, 95, 98a, or

99 (Reapproved 2004) .

"Coal-derived fuel" means any fuel (whether in a solid, liquid or gaseous state)

produced by the mechanical, thermal, or chemical processing of coal .

"Coal-fired" means :

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 ;

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 .

"Cogeneration unit" means, for the purposes of Subparts C, D, and E, a

stationary, fossil fuel-fired boiler or a stationary, fossil fuel-fired

combustion turbine of which both of the following conditions are true :

It uses equipment to produce electricity and useful thermal energy for

industrial, commercial, heating, or cooling purposes through the sequential use

of energy ; and

It produces either of the following during the 12-month period beginning on the

date the unit first produces electricity and during any subsequent calendar year

after that in which the unit first produces electricity :

For a topping-cycle cogeneration unit, both of the following :

Useful thermal energy not less than five percent of total energy output

; and

I

Useful power that, when added to one-half of useful thermal energy produced, is

not less than 42

.5 percent of total energy input, if useful thermal energy

produced is 15 percent or more of total energy output, or not less than 45

percent of total energy input if useful thermal energy produced is less than 15

percent of total energy output ; or

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For

of totala

bottoming-cycleenergy

input .

cogeneration unit, useful power not less than 45

percent

"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 .

"Combustion turbine" means

:

An enclosed device comprising a compressor, a combustor, and a turbine and in

which the flue gas resulting from the combustion of fuel in the combustor passes

through the turbine, rotating the turbine ; and

If the enclosed device

. .

the above paragraph of this

definition is combined cycle, any associated duct burner, heat recovery steam

generator and steam turbine .

"Commence commercial operation" means, for the purposes of Subpart B of this

Part, with regard to an EGU that serves a generator, to have begun to produce

steam, gas, or other heated medium used to generate electricity for sale or use,

including test generation

. Such date must remain the unit's date of

commencement of operation even if the EGU is subsequently modified,

reconstructed or repowered

. For the purposes of Subparts C, D and E, "commence

commercial operation_ is as defined in Section 225 .150 .

225"Commence

.560(f),

construction"

and 225.570,

means,

that the

for

owner

the purposes

or owner's

of Section

designee

225has .460(f),

obtained

225all.470,

necessary preconstruction approvals (e .g ., zoning) or permits and either has

:

Begun, or caused to begin, a continuous program of actual on-site construction

of the source, to be completed within a reasonable time ; or

Entered into binding agreements or contractual obligations, which cannot be

cancelled or modified without substantial loss to the owner or operator, to

undertake a program of actual construction of the source to be completed within

a reasonable time

.

For purposes of this definition :

"Construction" shall be determined as any physical change or change in the

method of operation, including but not limited to fabrication, erection,

installation, demolition, or modification of projects eligible for CASA

allowances, as set forth in Sections 225

.460 and 225 .560 .

"A reasonable time" shall be determined considering but not limited to the

following factors : the nature and size of the project, the extent of design

engineering, the amount of off-site preparation, whether equipment can be

fabricated or can be purchased, when the project begins (considering both the

seasonal nature of the construction activity and the existence of other projects

competing for construction labor at the same time, the place of the

environmental permit in the sequence of corporate and overall governmental

approval), and the nature of the project sponsor (e .g ., private, public,

regulated) .

I

"Commence operation;"., for purposes of Subparts C, D and E, means :

---

To have

begun any mechanical, chemical, or electronic process, including, for

the purpose of a unit, start-up of a unit's combustion chamber, except as

provided in 40 CFR 96 .105, 96 .205, or 96

.305, as incorporated by reference in

Section 225 .140 .

For a unit that undergoes a physical change (other than replacement of the unit

by a unit at the same source) after the date the unit commences operation as set

forth in the first paragraph of this definition, such date will remain the date

of commencement of operation of the unit, which will continue to be treated as

the same unit .

For a unit that is replaced by a unit at the same source (e .g ., repowered),

after the date the unit commences operation as set forth in the first paragraph

of this definition, such date will remain the replaced unit's date of

commencement of operation, and the replacement unit will be treated as a

separate unit with a separate date for commencement of operation as set forth in

this definition as appropriate .

"Common stack" means a single flue through which emissions from two or more

units are exhausted .

"Compliance account" means, for the purposes of Subparts D and E, a CAIR

NOx

Allowance Tracking System account, established by USEPA for a CAIR NOx source or

CAIR NOx

Ozone Season source pursuant to 40 CFR 96QL. subparts FF and FFFF in

which any CAIR

NOx allowance or CAIR NOx Ozone Season allowance allocations for

the CAIR NOx units or CAIR

NOx Ozone Season units at the source are initially

recorded and in which are held any CAIR NOx or CAIR NOx Ozone Season allowances

available for use for a control period in order to meet the source's CAIR

NOx

or

CAIR NOx

Ozone Season emissions limitations in accordance with Sections 225 .410

and 225 .510, and 40 CFR 96 .154 and 96

.354, as incorporated by reference in

Section 225 .140 . CAIR NOx allowances may not be used for compliance with the

CAIR NOx

Ozone Season Trading pr

and CAIR NOx Ozone Season

allowances may not be used for compliance with the CAIR

NOx Annual Trading

"Control period" means

:

For the CAIR S02 and NOx Annual Trading pregrameprnaramg

in Subparts C and D,

the period beginning January 1 of a calendar year, except as provided in

Sections 225 .310(d)(3) and 225

.410(d)(3), and ending on December 31 of the same

year, inclusive ; or

For the CAIR NOx

Ozone Season Trading Program in Subpart E, the period beginning

May 1 of a calendar year, except as provided in Section 225 .510(d)(3), and

ending on September 30 of the same year, inclusive .

"Designated representative" means, for the purposes of Subpart B of this Part,

the same as defined in 40 CFR 60 .4102 .

"Electric generating unit-4 ."

or"

EGU}" means a fossil fuel-fired stationary

boiler, combustion turbine or combined cycle system that serves a generator that

has a nameplate capacity greater than 25 MWe and produces electricity for sale

.

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"Flue" means a conduit or duct through which gases or other matter is exhausted

to the atmosphere

.

---

"Fossil fuel" means natural gas, petroleum, coal, or any form of solid, liquid,

or gaseous fuel derived from such material .

"Fossil fuel-fired" means the combusting QL_any amount of fossil fuel, alone or

in combination with any other fuel in any calendar year

.

"Generator" means a device that produces electricity

.

"Gross electrical output" means the total electrical output from an EGU before

making any deductions for energy output used in any way related to the

production of energy

. For an EGU generating only electricity, the gross

electrical output is the output from the turbine/generator set

.

"Heat input" means, for the purposes of subparts C, D, and E, a specified period

of time, the product (in mmBtu/hr) of the gross calorific value of the fuel (in

Btu/lb) divided by 1,000,000 Btu/mmBtu and multiplied by the fuel feed rate into

a combustion device (in lb of fuel/time), as measured, recorded and reported to

USEPA by the CAIR designated representative and determined by USEPA in

accordance with 40 CFR 96, subpart HH, HHH, or HHHH, if applicable, and

excluding the heat derived from preheated combustion air, recirculated flue

gases, or exhaust from other sources .

"Higher heating value

" or"HHV}" means the total heat liberated per mass of

fuel burned (Btu pcr pounds),

when fuel and dry air at standard conditions

undergo complete combustion and all resultant products are brought to their

standard states at standard conditions .

"Input mercury" means the mass of mercury that is contained in the coal

combusted within an EGU

.

"Integrated gasification combined cycle-F

"

or"

IGCC}" means a coal-fired

electric utility steam generating unit that burns a synthetic gas derived from

coal in a combined-cycle gas turbine . No coal is directly burned in the unit

during operation .

"Nameplate capacity" means, starting from the initial installation of a

generator, the maximum electrical generating output (in MWe) that the generator

is capable of producing on a steady-state basis and during continuous operation

(when not restricted by seasonal or other deratings) as specified by the

manufacturer of the generator or, starting from the completion of any subsequent

physical change in the generator resulting in an increase in the maximum

electrical generating output (in MWe) that the generator is capable of producing

on a steady-state basis and during continuous operation (when not restricted by

seasonal or other deratings), such increased maximum amount as specified by the

person conducting the physical change

.

"Oil-fired unit" means a unit combusting fuel oil for more than 15 .0 percent of

the annual heat input in a specified year and not qualifying as coal-fired .

"Output-based emission standard" means, for the purposes of Subpart B of this

Part, a maximum allowable rate of emissions of mercury per unit of gross

electrical output from an EGU .

I

I

"Potential electrical output capacity" means 33 percent of a unit's maximum

design heat input, expressed in mmBtu/hr divided by 3 .413 mmBtu/MWh, and

multiplied by 8,760 hr/yr .

---

"Project sponsor" means a person or an entity, including but not limited to the

owner or operator of an EGU or a not-for-profit group, that provides the

majority of funding for an energy efficiency and conservation, renewable energy,

or clean technology project as listed in Sections 225 .460 and 225 .560, unless

another person or entity is designated by a written agreement as the project

sponsor for the purpose of applying for NOx allowances or NOx Ozone Season

allowances from the CASA .

"Rated-energy efficiency" means the percentage of thermal energy input that is

recovered as useable energy in the form of gross electrical output, useful

thermal energy, or both that is used for heating, cooling, industrial processes,

or other beneficial uses as follows :

For electric generators, rated energy efficiency is calculated as one kilowatt

hour (3,413 Btu) of electricity divided by the unit's design heat rate using the

higher heating value of the fuel, and expressed as a percentage .

For combined heat and power projects, rated-energy efficiency is calculated

using the following formula :

REE

_

((GO + UTE)/HI) ? 100

Where :

REE =

Rated-energy efficiency, expressed as percentage .GO

=

Gross

electrical output of the system expressed in Btu/hr

.UTE

=

Useful thermal

output from the system that is used for heating, cooling, industrial processes

or other beneficial uses, expressed in Btu/hr .HI

=

Heat input, based

upon the higher heating value of fuel, in Btu/hr .

"Repowered" means, for the purposes of an EGU, replacement of a coal-fired

boiler with one of the following coal-fired technologies at the same source as

the coal-fired boiler :

Atmospheric or pressurized fluidized bed combustion ;

Integrated gasification combined cycle ;

Magnetohydrodynamic5 ;

Direct and indirect coal-fired turbines ;

Integrated gasification fuel cells ; or

As determined by the USEPA in consultation with the United States Department of

Energy, a derivative of one or more of the technologies under this definition

and any other coal-fired technology capable of controlling multiple combustion

emissions simultaneously with improved boiler or generation efficiency and with

significantly greater waste reduction relative to the performance of technology

in widespread commercial use as of January 1, 2005 .

I

"Rolling 12-month basis" means, for the purposes of Subpart B of this Part, a

determination made on a monthly basis from the relevant data for a particular

calendar month and the preceding 11 calendar months (total of 12 months of

data), with two exceptions . For determinations involving one EGU, calendar

months in which the EGU does not operate (zero EGU operating hours) must not be

included in the determination, and must be replaced by a preceding month or

months in which the EGU does operate, so that the determination is still based

---

on 12 months of data . For determinations involving two or more EGUs, calendar

months in which none of the EGUs covered by the determination operates (zero EGU

operating hours) must not be included in the determination, and must be replaced

by preceding months in which at least one of the EGUS covered by the

determination does operate, so that the determination is still based on 12

months of data .

"Total energy output" means, with respect to a cogeneration unit, the sum of

useful power and useful thermal energy produced by the cogeneration unit .

"Useful thermal energy" means, for the purpose of a cogeneration unit, the

thermal energy that is made available to an industrial or commercial process,

excluding any heat contained in condensate return or makeup water :

Used in a heating application

(e .g ., space heating or domestic hot water

heating)

; or

Used in a space cooling application (e

.g ., thermal energy used by an absorption

chiller) .

(Source : Amended at 31 Ill

. Reg . , effective -)

Section 225 .140

Incorporations by Reference

The following materials are incorporated by reference

. These incorporations do

not include any later amendments or editions

.

a)

40 CFR 60, 60 .17, 60 .45a, 60 .49a(k)(1) and (p), 60

.50a(h), and 60 .4170

through 60

.4176 (2005) .

b)

40 CFR 75 (2005 2006) .

c)

40 CFR 78 (2006) .

d)

40 CFR 96, CAIR So2Trading Program,

subpartSuuhnarts AAA (excluding 40 CFR

96 .204 and 96 .206), oubpart BBB, oubpart FFF, e-& ga* -GGG,

and

cubpart

HHH

(2006) .

e)

40 CFR 96, CAIR NOx Annual Trading Program, oubpartguhnarts

AA (excluding

40 CFR 96 .104, 96 .105(b)(2), and 96 .106),

oubpart BB, subpart FF, subpart GG,

and subpart HH (2006) .

f)

40 CFR 96, CAIR NOx Ozone Season Trading Program,

sabpa-rtgnhnarts AAAA

(excluding 40 CFR 96 .304, 96

.305(b)(2), and 96 .306), subpart BBBB, subpart FFFF,

subpart GGGG, and subpart HHHH (2006) .

g ) ASTM . The following methods from the American Society for Testing

and Materials, 100 Barr Harbor Drive, P .O . Box C700, West Conshohocken PA 19428-

2959, (610) 832-9585 :

1)

ASTM D388-77 (approved February 25, 1977), D388-90 (approved March 30,

1990), D388-91a (approved April 15, 1991), D388-95 (approved January 15, 1995),

D388-98a (approved September 10, 1998), or D388-99 (approved September 10, 1999,

reapproved in 2004), Classification of Coals by Rank .

I

2)

ASTM D3173-03, Standard Test Method for Moisture in the Analysis Sample of

Coal and Coke (Approved April 10, 2003) .

---

3)

ASTM D3684-01, Standard Test Method for Total Mercury in Coal by the

Oxygen Bomb Combustion/Atomic Absorption Method (Approved October 10, 2001) .

4)

ASTM D5865-04, Standard Test Method

Coke (Approved April 1, 2004) .

5) ASTM D6414-01, Standard Test Method

Combustion Residues by Acid Extraction or

Absorption (Approved October 10, 2001) .

for Gross Calorific Value of Coal and

for Total Mercury in Coal and Coal

Wet Oxidation/Cold Vapor Atomic

6)

ASTM D6784-02, Standard Test Method for Elemental, Oxidized, Particle-

Bound and Total Mercury in Flue Gas Generated from Coal-Fired Stationary Sources

(Ontario Hydro Method) (Approved April 10, 2002) .

h)

Federal Energy Management Program, M&V

Guidelines :

Measurement and

Verification for Federal Energy Projects, US Department of Energy, Office of

Energy Efficiency and Renewable Energy, Version 2 .2, DOE/GO-102000-0960

(September 2000) .

(Source : Amended at 31 Ill . Reg . , effective )

Section 225 .150

Commence Commercial Operation

Commence commercial operation means, for the purposes of Subparts C, D and E,

with regard to a unit serving a generator :

a)

To have begun to produce steam, gas, or other heated medium used to

generate electricity for sale or use, including test generation, except as

provided in 40 CFR 96 .105, 96 .205, or 96.305, as incorporated by reference in

Section 225 .140 .

1)

For a unit that is a CAIR S02 unit, CAIR NOx unit, or a CAIR NOx Ozone

Season unit pursuant to 40 CFR 96 .104, 96 .204 or 96 .304, respectively, on the

date the unit commences commercial operation on the later of November 15, 1990

or the date the unit commences commercial operation as defined in subsection (a)

of this Section and that subsequently undergoes a physical change (other than

replacement of the unit by a unit at the same source), such date will remain the

unit's date of commencement of commercial operation, which will continue to be

treated as the same unit .

2)

For a unit that is a CAIR SO2 unit, CAIR NOx unit, or a CAIR NOx Ozone

Season unit pursuant to 40 CFR 96 .104, 96 .204 or 96 .304, respectively, on the

later of November 15, 1990 or the date the unit commences commercial operation

as defined in subsection (a) of this Section and that is subsequently replaced

by a unit at the same source

(e.g.,

repowered), such date will remain the

replaced unit's date of commencement of commercial operation, and the replaced

unit will be treated as a separate unit with a separate date for commencement of

commercial operation as defined in subsection (a) or (b) of this Section as

appropriate .

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b)

Notwithstanding subsection (a) of this Section and except as provided in

40 CFR 96 .105, 96 .205, or 96.305 for a unit that is not a CAIR S02 unit, CAIR

NOx unit, or a CAIR NOx Ozone Season unit pursuant to Section 225 .305, 225 .405,

or 225 .105,225 .505 . respectively, on the later of November 15, 1990 or the date

the unit commences commercial operation as defined in subsection (a) of this

Section, the unit's date for commencement of commercial operation will be the

---

I

date on which the unit becomes an affected unit pursuant to Section 225 .305,

225

.405,

or

225 .105,225 .505, respectively

.

1)

For a unit with

a

date

for

commencement of

commercial operation

as

defined

in subsection

(b) of this Section and

that

subsequently undergoes a physical

change (other than replacement of the unit by a unit at the same source), such

date will remain the unit's date of commencement of commercial operation, which

shall continue to be treated as the same unit .

2)

For a unit with a date for commencement of commercial operation as defined

in subsection (b) of this Section and that is subsequently replaced by a unit at

the same source (e

.g .,

repowered), such date will remain the replaced unit's

date of commencement of commercial operation, and the replaced unit will be

treated as a separate unit with a separate date for commencement of commercial

operation as defined in subsection (a) or (b) of this Section as appropriate .

(Source : Added at 31 Ill . Reg . -, effective -)

SUBPART C : CLEAN AIR ACT INTERSTATE

RULE (CAIR) S02 TRADING PROGRAM

Section 225 .300

Purpose

The purpose of this Subpart C is to control the emissions of sulfur dioxide

(S02) from EGUs annually by implementing the CAIR S02 Trading Program pursuant

to 40 CFR 96, as incorporated by reference in Section 225 .140 .

(Source : Added at 31 Ill . Reg . ,

effective )

Section 225 .305

Applicability

a)

Except as provided in subsections (h)(1), (b) (3), and (b) (4) of this

Section :

1)

The following units are CAIR S02 units, and any source that includes one

or more such units is a CAIR S02 source subject to the requirements of this

Subpart C

: any stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-

fired combustion turbine serving at any time, since the later of November 15,

1990 or the start-ups the unit's combustion chamber, a generator with

nameplate capacity of more than 25 MWe producing electricity for sale

.

2)

If a stationary boiler or stationary combustion turbine that, pursuant to

subsection (a) (1) of this Section, is not a CAIR S02 unit begins to combust

fossil fuel or to serve a generator with nameplate capacity of more than 25 MWe

producing electricity for sale, the unit will become a CAIR S02 unit as provided

in subsection (a) (1) of this Section on the first date on which it both combusts

fossil fuel and serves such generator

.

b)

The units that meet the requirements set forth in subsections (b)(1),

(b)

(3), and (b) (4) of this Section will not be CAIR S02 units and units that

meet the requirements of subsections (b) (2) and (b) (5) of this Section are CAIR

S02 units :

I

I

1)

Any unit that is a CAIR S02 unit pursuant to subsection

(a)(1)

or (aH2)

of this Section and :

---

A)

Qualifies as a cogeneration unit during the 12-month period starting on

the date the unit first produces electricity and eent

iisgcnntinues

to qualify

as a cogeneration unit ; and

B)

Does not serve at any time, since the later of November 15, 1990 or the

start-up of the unit's combustion chamber, a generator with nameplate capacity

of more than 25 MWe supplying any calendar year more than one-third of the of

the unit's potential electric output capacity or 219,000 MWh, whichever is

greater, to any utility power distribution for sale .

2)

If a unit qualifies as a cogeneration unit during the 12-month period

starting on the date the unit first produces electricity and meets the

requirements of subsection (b) (1) of this Section for at least one calendar

year, but subsequently no longer meets all such requirements, the unit shall

become a CAIR S02 unit starting on the earlier of January 1 after the first

calendar year during which the unit no longer qualifies as a cogeneration unit

or January 1 after the first calendar year during which the unit no longer meets

the requirements of subsection (b) (1) (B) of this Section .

3)

Any unit that is a CAIR S02 unit pursuant to subsection (a) (1) or (a) (2)

of this Section commencing operation before January 1, 1985 and

:

A)

Qualifies as a solid waste incineration unit ; and

B)

With an average annual fuel consumption of non-fossil fuel for 1985-1987

exceeding 80 percent (on a Btu basis) and an average annual fuel consumption of

non-fossil fuel for any three consecutive calendar years after 1990 exceeding 80

percent (on a Btu basis) .

4)

Any unit that is a CAIR S02 unit under subsection (a) (1) or (a) (2) of this

Section commencing operation on or after January 1, 1985 *

ands

A)

Qualifies as a solid waste incineration unit ; and

B)

With an average annual fuel consumption of non-fossil fuel the first three

years of operation exceeding 80 percent (on a Btu basis) and an average annual

fuel consumption of non-fossil fuel for any three consecutive calendar years

after 1990 exceeding 80 percent (on a Btu basis) .

5)

If a unit qualifies as a solid waste incineration unit and meets the

requirements of subsection (b) (3) or (b) (4) of this section for at least three

consecutive years, but subsequently no longer meets all such requirements, the

unit shall become a CAIR S02 unit starting on the earlier of January 1 after the

first three consecutive calendar years after 1990 for which the unit has an

average annual fuel consumption of fucl of 20 percent or more .

(Source : Added at 31 Ill . Reg . , effective -)

Section 225 .310

Compliance Requirements

I

I

I

a)

The owner or operator of a CAIR S02 unit must comply with the requirements

of the CAIR S02 Trading Program for Illinois as set forth in this Subpart C and

40 CFR 96, subpart AAA (CAIR S02 Trading Program General Provisions, excluding

40 CFR 96 .204,96.204 and 96 .206) ; 40 CFR 96, subpart BBB (CAIR Designated

Representative for CAIR S02 Sources)

; 40 CFR 96, subpart FFF (CAIR S02 Allowance

Tracking System) ; 40 CFR 96, subpart GGG (CAIR S02 Allowance Transfers)

; and 40

---

CFR 96, subpart

HHH (Monitoring and

Reporting) ; as

incorporated by reference in

Section 225 .140 -

b)

Permit requirements

:

1)

The owner or operator of each source with one or more CAIR S02 units at

the source must apply for a permit issued by the Agency with federally

enforceable conditions covering the CAIR S02 Trading Program ("CAIR permit")

that complies with the requirements of Section 225

.320 (Permit Requirements) .

2)

The owner or operator of each CAIR S02 source and each CAIR S02 unit at

the source must operate the CAIR S02 unit in compliance with its CAIR permit

.

c)

Monitoring requirements

:

1)

The owner or operator of each CAIR S02 source and each CAIR S02 unit at

the source must comply with the monitoring requirements of 40 CFR 96, subpart

HHH

. The CAIR designated representative of each CAIR S02 source and each CAIR

S02 unit at the CAIR S02 source must comply with those sections of the

monitoring, reporting and recordkeeping requirements of 40 CFR 96, subpart HHH,

applicable to the CAIR designated representative

.

2)

The compliance of each CAIR S02 source with the emissions limitation

pursuant to subsection (d) of this Section will be determined by the emissions

measurements recorded and reported in accordance with 40 CFR 96, subpart HHH and

40 CFR 75 .

d)

Emission requirements

:

1)

By the allowance transfer deadline, March 1, 2011, and by March 1 of each

subsequent year, the owner or operator of each CAIR S02 source and each CAIR S02

unit at the source must hold a tonnage equivalent in CAIR S02 allowances

available for compliance deductions pursuant to 40 CFR 96

.254(a) and (b) in the

CAIR S02 source's CAIR S02 Allowance System Tracking account

. The allowance

transfer deadline means by midnight of March 1 (if it is a business day) or

midnight of the first business day thereafter

. The number of allowances held

may not be less than the total tons of S02 emissions for the control period from

all CAIR S02 units at the CAIR S02 source, as determined in accordance with 40

CFR 96, subpart HHH .

2)

Each ton of S02 emitted by a CAIR S02 unit in excess of the tonnage

authorization of CAIR S02 allowances held by the owner or operator for each CAIR

S02 unit in its CAIR S02 Allowance System Tracking account for each day of the

applicable control period will constitute a separate violation of this Subpart

C, the Clean Air Act, and the Act .

3)

Each CAIR S02 unit will be subject to the monitoring requirements of

subsection (c) (1) of this Section starting on the later of January 1,

2009,2009

or the deadline for meeting the unit's monitoring certification requirements

pursuant to 40 CFR 96

.270(b)(1) or (2) and for each control period thereafter

.

4)

CAIR S02 allowances must be held in, deducted from, or transferred into or

among allowance accounts in accordance with this Subpart and 40 CFR 96, subparts

FFF and GGG .

I

5)

In order to comply with the requirements of subsection (d) (1) of this

Section, a CAIR S02 allowance may not be deducted for compliance according to

---

I

subsection

(d) (1) of this Section

; for a control period in a calendar year

before the year for which the allowance is allocated .

6)

A CAIR S02

allowance is a limited authorization to emit

S02 in accordance

with the CAIR S02 Trading Program

. No provision of the CAIR S02 Trading

Program, the CAIR permit application, the CAIR permit, or a retired unit

exemption pursuant to 40 CFR

96 .205,

and no provision of law, will be construed

to limit the authority of the United States or the State to terminate or limit

this authorization .

7)

A CAIR S02

allowance allocated by USEPA pursuant to the CAIR

S02 Trading

Program does not constitute a property right .

B)

Upon recordation by USEPA pursuant to 40 CFR

9696 . subpart FFF or oubpart

GGG, every allocation, transfer, or deduction of a CAIR S02

allowance to or from

a CAIR S02

source's compliance account, as defined by 40 CFR

96 .202, is deemed

to amend automatically, and become a part of, any CAIR permit of the CAIR

S02

source

. This automatic amendment of the CAIR permit will be deemed an operation

of law and will not require any further review

.

e)

Recordkeeping and reporting requirements

:

1)

Unless otherwise provided, the owner or operator of the CAIR

S02 source

and each CAIR S02

unit at the source must keep on site at the source each of the

documents listed in subsections (e) (1) (A) through (e) (1) (D) of this Section for

a period of five (5)

years from the date the document is created

. This period

may be extended for cause, at any time prior to the end of five years, in

writing by the Agency or USEPA .

A)

The certificate of representation for the CAIR designated representative

for the source and each CAIR S02

unit at the source, all documents that

demonstrate the truth of the statements in the certificate of representation,

provided that the certificate and documents must be retained on site at the

source beyond such five-year period until the documents are superseded because

of the submission of a new certificate of representation pursuant to 40 CFR

96 .213,

changing the CAIR designated representative

.

B)

All emissions monitoring information, in accordance with 40 CFR

96,

subpart HHH

.

C)

Copies of all reports, compliance certifications, and other submissions

and all records made or required pursuant to the CAIR

S02 Trading Program or

documents necessary to demonstrate compliance with the requirements of the CAIR

S02

Trading Program or with the requirements of this Subpart C

.

D)

Copies of all documents used to complete a CAIR permit application and any

other submission or documents used to demonstrate compliance pursuant to the

CAIR S02 Trading Program

.

2)

The CAIR designated representative of a CAIR

S02

source and each CAIR S02

unit at the source must submit to the Agency and USEPA the reports and

compliance certifications required pursuant to the CAIR

S02

Trading Program,

including those pursuant to 40 CFR

96, subpart HHH

.

I

I

f)

Liability :

---

I

1)

No

revision of a permit for a

CAIR S02 unit may excuse any violation of

the requirements of this Subpart C or the requirements of the CAIR S02 Trading

Program .

2)

Each CAIR S02 source and each CAIR S02 unit must meet the requirements of

the CAIR S02 Trading Program

.

3)

Any provision of the CAIR S02 Trading Program that applies to CAIR S02

source (including any provision applicable to the CAIR designated representative

of a CAIR S02 source) will also apply to the owner and operator of the CAIR S02

source and to the owner and operator of each CAIR S02 unit at the source

.

4)

Any provision of the CAIR S02 Trading Program that applies to a CAIR S02

unit (including any provision applicable to the CAIR designated representative

of a CAIR S02 unit) will also apply to the owner and operator of the CAIR S02

unit .

5)

The CAIR designated representative of a CAIR S02 unit that has excess S02

emissions in any control period must surrender the allowances as required for

deduction pursuant to 40 CFR 96 .254(d)(1)

.

6)

The owner or operator of a CAIR S02 unit that has excess S02 emissions in

any control period must pay any fine, penalty, or assessment or comply with any

other remedy imposed pursuant to the Act and 40 CFR 96

.254(d)(2)

.

g)

Effect on other authorities-

.

.L No provision of the CAIR S02 Trading

Program, a CAIR permit application, a CAIR permit, or a retired unit exemption

pursuant to 40 CFR 96

.205 will be construed as exempting or excluding the owner

and operator and, to the extent applicable, the CAIR designated representative

of a CAIR S02 source or a CAIR S02 unit

; from compliance with any other

regulation promulgated pursuant to the CAA, the Act, any State regulation or

permit, or a federally enforceable permit

.

(Source

: Added at 31 Ill . Reg . ,

effective )

Section 225 .315

Appeal Procedures

The appeal procedures for decisions of USEPA pursuant to the CAIR S02 Trading

Program are set forth in 40 CFR 78, as incorporated by reference in Section

225 .140 .

(Source : Added at 31 111 . Reg .

,

effective -)

Section 225 .320

Permit Requirements

a)

Permit requirements

:

1)

The owner or operator of each source with a CAIR S02 unit is required to

submit :

I

I

A)

A complete permit application addressing all applicable CAIR S02 Trading

Program requirements for a permit meeting the requirements of this

Section-

22S .320,,

applicable to each CAIR S02 unit at the source

. Each CAIR permit must

contain elements required for a complete CAIR permit application pursuant to

subsection (b) (2) of this Section .

---

I

I

B)

Any supplemental information that

the Agency determines is necessary in

order to review a

CAIR permit application and issue a CAIR permit

.

2)

Each CAIR permit will be issued pursuant to Section 39 or 39

.5 of the Act,

must contain federally enforceable conditions addressing all applicable CAIR S02

Trading Program

and

requirements, and will be a complete and segregable portion

of the source's entire permit pursuant to subsection (a) (1) of this Section

.

3)

No CAIR permit may be issued and no CAIR S02 Allowance System Tracking

account may be established for the CAIR S02 source, until the Agency and USEPA

have received a complete certificate of representation for a CAIR designated

representative or alternate designated representative pursuant to 40 CFR 96,

subpart BBB, for a source and the CAIR S02 unit at the source

.

4)

For all CAIR S02 units that commenced operation before July 1, 2008, the

owner or operator of the unit must submit a CAIR permit application meeting the

requirements of this Section

22S .320

on or before July 1, 2008 .

5)

For CAIR S02 units that commence operation on or after July 1, 2008, and

that are and are not subject to Section 39

.5 of the Act, the owner or operator

of such units must submit applications for construction 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 the applications must specify that they are

applying for CAIR permits

; and must address the CAIR permit application

requirements of this Section

225 .320 . +

b)

Permit applications :

1)

Duty to apply:j

. The owner or operator of any source with one or more CAIR

S02 units must submit to the Agency a CAIR permit application for the source

covering each CAIR S02 unit pursuant to subsection (b) (2) 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 S02 units must reapply for a

CAIR permit for the source as required by this Subpart, 35 Ill

. Adm . Code 201,

and, as applicable, Sections 39 and 39

.5 of the Act .

2)

Information requirements for CAIR permit applications-

.

.L A complete CAIR

permit application must include the following elements concerning the source for

which the application is submitted

:

A) Identification of the source, including plant name

. The ORIS (Office of

Regulatory Information Systems) or facility code assigned to the source by the

Energy Information Administration must also be included, if applicable

;

B)

Identification of each CAIR S02 unit at the source

; and

C)

The compliance requirements applicable to each CAIR S02 unit as set forth

in Section 225 .310 .

I

I

I

3)

An application for a CAIR permit will be treated as a modification of the

CAIR S02 source's existing federally enforceable permit, if such a permit has

been issued for that CAIR S02 source, and will be subject to the same procedural

requirements

. When the Agency issues a CAIR permit pursuant to the requirements

of this Section

225 .320, .

it will be incorporated into and become part of that

CAIR S02 source's existing federally enforceable permit

.

---

I

c)

Permit

content-1

Each CAIR permit is deemed to incorporate automatically

the definitions and terms

pursuant tozpec .fied

in

Section 225 .120 and, upon

recordation of USEPA under 40 CFR 96,

CubpartsDubnarts

FFF and GGG. as

incorporated by reference in Section 225

.140, every allocation, transfer, or

deduction of a CAIR S02 allowance to or from the compliance account of the CAIR

S02 source covered by the permit .

(Source

: Added at 31 Ill . Reg .

, effective )

Section 225 .325

Trading Program

a)

The CAIR S02 Trading Program is administered by USEPA

. CAIR S02

allowances are issued as described by the definition for allocate in 40 CFR

96

.220, as incorporated by reference in Section 225

.140

. The amount of CAIR S02

allowances to be credited to a CAIR S02 source's CAIR S02 Allowance Tracking

System account for a CAIR S02 unit will be determined in accordance with 40 CFR

96

.253, as incorporated by reference in Section 225

.140 .

b)

A CAIR S02 allowance is a limited authorization to emit S02 during the

calendar year for which the allowance is allocated or any calendar year

thereafter pursuant to the CAIR S02 Trading Program as follows

:

1)

For one CAIR S02 allowance allocated for a control period in a year before

2010, one ton of S02, except as provided for in the compliance deductions

pursuant to 40 CFR 96

.254(b) ;

2)

For one CAIR S02 allowance allocated for a control period in 2010 through

2014, 0

.5 ton of S02, except as provided for in the compliance deductions

pursuant to 40 CFR 96 .254(b)

; and

3)

For one CAIR S02 allowance allocated for a control period in 2015 or

later, 0

.35 ton of 502, except as provided for in the compliance deductions

pursuant to 40 CFR 96

.254(b) .

(Source : Added at 31 Ill

. Reg . ,

effective -)

SUBPART D

: CAIR NOx ANNUAL TRADING PROGRAM

Section 225

.400

Purpose

The purpose of this Subpart D is to control the annual emissions of nitrogen

oxides (NOx) from EGUs by determining allocations and implementing the CAIR NOx

Annual Trading Program

.

(Source : Added at 31 Ill

. Reg . ,

effective -)

Section 225 .405

Applicability

a)

Except as provided in subsections (b)

(1), (b) (3),

and (b) (4) of this

Section :

I

I

I

1)

The following units are CAIR NOx units, and any source that includes one

or more such units is a CAIR NOx source subject to the requirements of this

Subpart D

: any stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-

fired combustion turbine serving at any time, since the later of November 15,

1990 or the start-ups the unit's combustion chamber, a generator with

nameplate capacity of more than 25 MWe producing electricity for sale

.

---

2)

If a

stationary boiler or stationary combustion turbine that, pursuant to

subsection (a) (1) of this Section, is not a CAIR NOx unit begins to combust

fossil fuel or to serve a generator with nameplate capacity of more than 25 MWe

producing electricity for sale, the unit will become a CAIR NOx unit as provided

in subsection (a) (1) of this Section on the first date on which it both combusts

fossil fuel and serves such generator

.

b)

The units that meet the requirements set forth in subsections

(b)(1),

(b)(3),

and (b) (4) of this Section will not be CAIR NOx units and units that

meet the requirements of subsections (b) (2) and (b) (5) of this Section are CAIR

NOx units

:

1)

Any unit that is a CAIR NOx unit pursuant to subsection (a) (1) or (a) (2)

of this Section and

:

A)

Qualifies as a cogeneration unit during the 12-month period starting on

the date the unit first produces electricity and

continuingccnt . ;nues to qualify

as a cogeneration unit

; and

B)

Does not serve at any time, since the later of November 15, 1990 or the

start-up of the unit's combustion chamber, a generator with nameplate capacity

of more than 25 MWe supplying any calendar year more than one-third of the

of

the

unit's potential electric output capacity or 219,000 MWh, whichever is

greater, to any utility power distribution for sale

.

2)

If a unit qualifies as a cogeneration unit during the 12-month period

starting on the date the unit first produces electricity and meets the

requirements of subsection (b) (1) of this Section for at least one calendar

year, but subsequently no longer meets all such requirements, the unit shall

become a CAIR NOx unit starting on the earlier of January 1 after the first

calendar year during which the unit no longer qualifies as a cogeneration unit

or January 1 after the first calendar year during which the unit no longer meets

the requirements of subsection (b) (1) (B) of this Section

.

3)

Any unit that is a CAIR NOx unit pursuant to subsection (a) (1) or (a) (2)

of this Section commencing operation before January 1, 1985 and

:

A)

Qualifies as a solid waste incineration unit

; and

B)

With an average annual fuel consumption of non-fossil fuel for 1985-1987

exceeding 80 percent (on a Btu basis) and an average annual fuel consumption of

non-fossil fuel for any three consecutive calendar years after 1990 exceeding 80

percent (on a Btu basis) .

4)

Any unit that is a CAIR NOx unit under subsection (a) (1) or (a) (2) of this

Section commencing operation on or after January 1,

1985-

.

andy

A)

Qualifies as a solid waste incineration unit

; and

B)

With an average annual fuel consumption of non-fossil fuel the first three

years of operation exceeding 80 percent (on a Btu basis) and an average annual

fuel consumption of non-fossil fuel for any three consecutive calendar years

after 1990 exceeding 80 percent (on a Btu basis)

.

I

5)

If a unit qualifies as a solid waste incineration unit and meets the

requirements of subsection (b) (3) or (b) (4) of this Section for at least three

---

consecutive

years, but subsequently no

longer meets all such requirements,

the

unit shall become

a CAIR NOx unit starting on

the earlier of January

1 after the

first three

consecutive calendar years after

1990 for which the unit has an

average annual fuel consumption of

furl of

20 percent or more .

(Source : Added at 31 Ill

. Reg . ,

effective -)

Section 225

.410

Compliance Requirements

a)

The owner or operator of a CAIR

NOx unit must comply with the requirements

of the CAIR NOx

Annual Trading Program for Illinois as set forth in this Subpart

D and 40 CFR 96, subpart AA

(NOx

Annual Trading Program General Provisions,

excluding 40 CFR 96

.104, 96 .105(b)(2), and 96 .106)

; 40 CFR 96, subpart BB (CAIR

Designated Representative for CAIR

NOx Sources)

; 40 CFR 96, subpart FF (CAIR

NOx

Allowance Tracking System)

; 40 CFR 96, subpart GG (CAIR

NOx Allowance

Transfers)

; and 40 CFR 96, subpart HH (Monitoring and Reporting)

; as

incorporated by reference in Section 225

.140 .

b)

Permit requirements :

1)

The owner or operator of each source with one or more CAIR

NOx units at

the source must apply for a permit issued by the Agency with federally

enforceable conditions covering the CAIR

NOx

Annual Trading Program ("CAIR

permit") that complies with the requirements of Section 225

.420 (Permit

Requirements) .

2)

The owner or operator of each CAIR

NOx source and each CAIR

NOx unit at

the source must operate the CAIR NOx

unit in compliance with its CAIR permit

.

c)

Monitoring requirements :

1)

The owner or operator of each CAIR

NOx source and each CAIR

NOx unit at

the source must comply with the monitoring requirements of 40 CFR 96, subpart HH

and Section 225 .450

. The CAIR designated representative of each CAIR

NOx source

and each CAIR NOx unit at the CAIR

NOx

source must comply with those sections of

the monitoring, reporting and recordkeeping requirements of 40 CFR 96, subpart

HH, applicable to a CAIR designated representative

.

2)

The compliance of each CAIR NOx

source with the NOx

emissions limitation

pursuant to subsection (d) of this Section will be determined by the emissions

measurements recorded and reported in accordance with 40 CFR 96, subpart HH

.

d)

Emission requirements :

1)

By the allowance transfer deadline, March 1, 2010, and by March 1 of each

subsequent year, the allowance tranofcr

dgadlinc,

the owner or operator of each

CAIR NOx

source and each CAIR NOx

unit at the source must hold CAIR

NOx

allowances available for compliance deductions pursuant to 40 CFR 96

.154(a) in

the CAIR NOx source's CAIR NOx

compliance account

. The allowance transfer

deadline means by midnight of March 1 (if it is a business day) or midnight of

the first business day thereafter

. The number of allowances held may not be

less than the tons of NOx

emissions for the control period from all CAIR

NOx

units at the source, as determined in accordance with 40 CFR 96, subpart HH

.

I

I

2)

Each ton of NOx

emitted in excess of the number of CAIR

NOx

allowances

held by the owner or operator for each CAIR

NOx

unit in its CAIR NOx compliance

---

account for each day of

the applicable control

period will constitute a separate

violation of this Subpart D, the Act, and the CAA

.

3)

Each CAIR NOx

unit will be subject to the monitoring requirements of

subsection

(c)(1)

of this Section starting on the later of January 1,

2009,

or the deadline for meeting the unit's monitoring certification requirements

pursuant to 40 CFR 96

.170(b)(1) or (b) (2) and for each control period

thereafter .

4)

CAIR NOx

allowances must be held in, deducted from, or transferred among

allowance accounts in accordance with this Subpart and 40 CFR 96, subparts FF

and GG

.

5)

In order to comply with the requirements of subsection (d) (1) of this

Section, a CAIR NOx

allowance may not be deducted for compliance according to

subsection (d) (1) of this Section

; for a control period in a year before the

calendar year for which the allowance is allocated

.

6)

A CAIR NOx

allowance allocated by the Agency or USEPA pursuant to the CAIR

NOx

Annual Trading Program is a limited authorization to emit one ton of

NOx in

accordance with the CAIR NOx

Trading Program . No

provision of the CAIR NOx

Trading Program, the CAIR NOx

permit application, the CAIR permit, or a retired

unit exemption pursuant to 40 CFR 96

.105, and no provision of law, will be

construed to limit the authority of the United States or the State to terminate

or limit this authorization .

7)

A CAIR

NOx

allowance allocated by the Agency or USEPA pursuant to the CAIR

NOx

Annual Trading Program does not constitute a property right

.

8)

Upon recordation by USEPA pursuant to 40 CFR 96, subpart FF or

10 CFR 96,

oubpart

GG, every allocation, transfer, or deduction of a CAIR

NOx

allowance to

or from a CAIR

NOx

source compliance account is deemed to amend automatically,

and become a part of, any CAIR NOx

permit of the CAIR NOx source . This

automatic amendment of the CAIR permit will be deemed an operation of law and

will not require any further review .

e)

Recordkeeping and reporting requirements :

1)

Unless otherwise provided, the owner or operator of the CAIR

NOx

source

and each CAIR

NOx

unit at the source must keep on site at the source each of the

documents listed in subsections (e) (1) (A) through

(e)(1)(E)

of this Section for

a period of five years from the date the document is created

. This period may

be extended for cause, at any time prior to the end of five years, in writing by

the Agency or USEPA .

A)

The certificate of representation for the CAIR designated representative

for the source and each CAIR

NOx

unit at the source, all documents that

demonstrate the truth of the statements in the certificate of representation,

provided that the certificate and documents must be retained on site at the

source beyond such five-year period until the documents are superseded because

of the submission of a new certificate of representation

. pursuant to 40 CFR

96

.113, changing the CAIR designated representative

.

I

I

I

B)

All emissions monitoring information, in accordance with 40 CFR 96,

subpart HH .

---

I

C)

Copies of

all reports, compliance

certifications, and other submissions

and all records made or required pursuant to the CAIR

NOx

Annual Trading Program

or documents necessary to demonstrate compliance with the requirements of the

CAIR NOx

Annual Trading Program or with the requirements of this Subpart D

.

D)

Copies of all documents used to complete a CAIR

NOx permit application and

any other submission or documents used to demonstrate compliance pursuant to the

CAIR NOx

Annual Trading Program .

E)

Copies of all records and logs for gross electrical output and useful

thermal energy required by Section 225

.450 .

2)

The CAIR designated representative of a CAIR

NOx

source and each CAIR Max

unit at the source must submit to the Agency and USEPA the reports and

compliance certifications required pursuant to the CAIR

NOx Annual Trading

Program, including those pursuant to 40 CFR 96, subpart HH

.

f)

Liability :

1) No

revision of a permit for a CAIR

NOx

unit may excuse any violation of

the requirements of this Subpart D or the requirements of the CAIR

NOx

Annual

Trading Program .

2)

Each CAIR NOx

source and each CAIR NOx

unit must meet the requirements of

the CAIR Max

Annual Trading Program

.

3)

Any provision of the CAIR

NOx Annual Trading Program that applies to a

CAIR NOx

source (including any provision applicable to the CAIR designated

representative of a CAIR NOx

source) will also apply to the owner and operator

of the CAIR NOx

source and to the owner and operator of each CAIR

Max unit at

the source

.

4)

Any provision of the CAIR Max

Annual Trading Program that applies to a

CAIR NOx

unit (including any provision applicable to the CAIR designated

representative of a CAIR NOx

unit) will also apply to the owner and operator of

the CAIR NOx unit .

5)

The CAIR designated representative of a CAIR

NOx unit that has excess

emissions in any control period must surrender the allowances as required for

deduction pursuant to 40 CFR 96

.154(d)(1) .

6)

The owner or operator of a CAIR

NOx unit that has excess

NOx

emissions in

any control period must pay any fine, penalty, or assessment or comply with any

other remedy imposed pursuant to the Act and 40 CFR 96

.154(d)(2)

.

g)

Effect on other authorities-

. .L No

provision of the CAIR NOx

Annual Trading

Program, a CAIR permit application, a CAIR permit, or a retired unit exemption

pursuant to 40 CFR 96

.105 will be construed as exempting or excluding the owner

and operator and, to the extent applicable, the CAIR designated representative

of a CAIR

NOx source or a CAIR NOx unit

; from compliance with any other

regulation promulgated pursuant to the CAA, the Act, any State regulation or

permit, or a federally enforceable permit .

(Source : Added at 31 Ill . Reg .

,

effective -)

I

Section 225 .415

Appeal Procedures

---

I

I

The appeal

procedures for

decisions of USEPA pursuant to the CAIR

NOx

Annual

Trading Program are set forth in 40 CFR 78, as incorporated by reference in

Section 225

.140 .

(Source

: Added at 31 Ill . Reg .

,

effective -)

Section 225 .420

Permit Requirements

a)

Permit requirements :

1)

The owner or operator of each source with a CAIR

NOx unit is required to

submit :

A)

A complete permit application addressing all applicable CAIR

NOx Annual

Trading Program requirements for a permit meeting the requirements of this

Section 225

.420,+ applicable to each CAIR

NOx

unit at the source . Each CAIR

permit must contain elements required for a complete CAIR permit application

pursuant to subsection (b) (2) of this Section

.

B)

Any supplemental information that the Agency determines necessary in order

to review a CAIR permit application and issue any CAIR permit

.

2)

Each CAIR permit will be issued pursuant to

39 and 39 .5 of

the Act, must contain federally enforceable conditions addressing all applicable

CAIR NOx

Annual Trading Program requirements and

mustwil

be a complete and

segregable portion of the source's entire permit pursuant to subsection (a) (1)

of this Section .

3)

No

CAIR permit may be issued, and no CAIR

NOx

compliance account may be

established for a CAIR

NOx

source, until the Agency and USEPA have received a

complete certificate of representation for a CAIR designated representative

pursuant to 40 CFR 96, subpart BB, for the CAIR

NOx

source and the CAIR NOx unit

at the source .

4)

For all CAIR NOx units that commenced operation before July 1, 2007, the

owner or operator of the unit must submit a CAIR permit application meeting the

requirements of this Section

225 .420

on or before July 1, 2007

.

5)

For all CAIR NOx units that commence operation on or after July 1, 2007,

the owner or operator of these units must submit applications for construction

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 the applications must

specify that they are applying for CAIR permits

; and must address the CAIR

permit application requirements of this Section

225 .120 . +

b)

Permit applications :

I

I

I

1)

Duty to apply-.L

The owner or operator of any source with one or more CAIR

NOx units must submit to the Agency a CAIR permit application for the source

covering each CAIR NOx unit pursuant to subsection (b) (2) 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 NOx units must reapply for a

CAIR permit for the source as required by this Subpart, 35 Ill

. Adm . Code 201,

and, as applicable, Sections 39 and 39

.5 of the Act .

---

I

I

2)

Information requirements for CAIR permit applications-_

.11 complete CAIR

permit application must include the following elements concerning the source for

which the application is submitted

:

A) Identification of the source, including plant name

. The ORIS (Office of

Regulatory Information Systems) or facility code assigned to the source by the

Energy Information Administration must also be included, if applicable ;

B)

Identification of each CAIR NOx unit at the source ; and

C)

The compliance requirements applicable to each CAIR NOx unit as set forth

in Section 225 .410 .

3)

An application for a CAIR permit will be treated as a modification of the

CAIR NOx source's existing federally enforceable permit, if such a permit has

been issued for that source, and will be subject to the same procedural

requirements . When the Agency issues a CAIR permit pursuant to the requirements

of this Section 225 .120,,, it will be incorporated into and become part of that

source's existing federally enforceable permit .

c)

Permit content-

.

.L Each CAIR permit is deemed to incorporate automatically

the definitions and terms pursuant

tosnec;fied in Section 225 .120 and, upon

recordation of USEPA under 40 CFR 96, Subparts

uhnart. FF and GG

. as

incorporated by reference in Section 225 .140, every allocation, transfer, or

deduction of a CAIR NOx allowance to or from the compliance account of the CAIR

NOx source covered by the permit .

(Source : Added at 31 111 . Reg . , effective -)

Section 225 .425

Annual Trading Budget

The CAIR NOx Annual Trading budget available for allowance allocations for each

control period will be determined as follows :

a)

The total base CAIR NOx Annual Trading budget is 76,230 tons per control

period for the years 2009 through 2014, subject to a reduction for two set-

asides, the New Unit Set-Aside (NUSA) and the Clean Air Set-Aside (CASA) . Five

percent of the budget will be allocated to the NUSA and 25 percent will be

allocated to the CASA, resulting in a CAIR NOx Annual Trading budget of 53,361

tons available for allocation per control period pursuant to Section 225 .440 .

The requirements of the NUSA are set forth in Section 225

.445, and the

requirements of the CASA are set forth in Sections 225

.455 through 225 .470 .

b)

The total base CAIR NOx Annual Trading budget is 63,525 tons per control

period for the year 2015 and thereafter, subject to a reduction for two set-

asides, the NUSA and the CASA . Five percent of the budget will be allocated to

the NUSA and 25 percent will be allocated to the CASA, resulting in a CAIR NOx

Annual Trading budget of 44,468 tons available for allocation per control period

pursuant to Section 225

.440 .

c)

If USEPA adjusts the total base CAIR NOx Annual Trading budget for any

reason, the Agency will adjust the base CAIR NOx Annual Trading budget and the

CAIR NOx Annual Trading budget available for allocation, accordingly .

(Source : Added at 31 Ill . Reg

.

,

effective )

I

I

Section 225 .430

Timing for Annual Allocations

---

a) No later than

July 31, 2007, the

Agency will submit to USEPA the CAIR NOx

allowance allocations, in accordance with Sections 225

.435 and 225

.440, for the

2009, 2010, and 2011 control periods

.

b)

By October 31, 2008, and October 31 of each year thereafter, the Agency

will submit to USEPA the CAIR NOx allowance allocations in accordance with

Sections 225 .435 and 225

.440, for the control period four years after the year

of the applicable deadline for submission pursuant to this Section

225 .430 .-

For

example, on October 31, 2008, the Agency will submit to USEPA the

allocations for the 2012 control period

.

c)

The Agency will allocate allowances from the NUSA to CAIR NOx units that

commence commercial operation on or after January 1, 2006

. The Agency will

report these allocations to USEPA by October 31 of the applicable control

period

. For example, on October 31, 2009, the Agency will submit to USEPA the

allocations from the NUSA for the 2009 control period

.

d)

The Agency will allocate allowances from the CASA to energy efficiency,

renewable energy, and clean technology projects pursuant to the criteria in

Sections 225 .455 through 225

.470

. The Agency will report these allocations to

USEPA by October 1 of each year

. For example, on October 1, 2009, the Agency

will submit to USEPA the allocations from the CASA for the 2009 control period,

based on reductions made in the 2008 control period

.

(Source : Added at 31 Ill

. Reg .

, effective )

Section 225 .435

Methodology for Calculating Annual Allocations

The Agency will calculate converted gross electrical output, in MWh, for each

CAIR NOx unit that has operated during at least one calendar year prior to the

calendar year in which the Agency reports the allocations to USEPA as follows

:

a)

For control periods 2009, 2010, and 2011, the owner or operator of the

unit must submit in writing to the Agency

. by June 1, 2007, a statement that

either gross electrical output data or heat input data is to be used to

calculate the unit's converted gross electrical output

. The data shall be used

to calculate converted gross electrical output pursuant to either subsection

(a) (1) or (a) (2) of this Section :

1)

Gross electrical output-

.

.L If the unit has four or five control periods of

data, then the gross electrical output (GO) will be the average of the unit's

three highest gross electrical outputs from the 2001, 2002, 2003, 2004, or 2005

control periods

. If the unit has three or fewer control periods of gross

electrical output data, the gross electrical output will be the average of those

control periods

. If the unit does not have gross electrical output for the 2004

and 2005 control periods, the gross electrical output will be the gross

electrical output data from the 2005 control period

. If a generator is served

by two or more units, the gross electrical output of the generator will be

attributed to each unit in proportion to the unit's share of the total control

period heat input of these units for the control period

. The unit's converted

gross electrical output will be calculated as follows

:

A) If the unit is coal-fired :

CGO (in MWh) = GO ? MWh ? 1.0 ;

I

I

I

B) If the unit is oil-fired

:

---

CGO (in MWh) = GO ? MWh ? 0.6 ; or

C) If the unit is neither coal-fired nor oil-fired :

CGO (in MWh) = GO ? MWh ?

O-40 .4 .

2)

Heat input (HI)

If the unit has four or five control periods of data,

the average of the unit's three highest heat inputjnQnta from the 2001, 2002,

2003, 2004 or 2005 control period, will be used . If the unit has heat inputs

from the 2003, 2004, or 2005 control period, the heat input will be the average

of those years . If the unit does not have heat input from the 2004 and 2005

control periods, the heat input from the 2005 control period will be used . The

unit's converted gross electrical output will be calculated as follows :

b)

For control periods 2012 and 2013, the owner or operator of the unit must

submit in writing to the Agency, by June 1, 2008, a statement that either gross

electrical output data or heat input data will be used to calculate the unit's

converted gross electrical output . The unit's converted gross electrical output

shall be calculated pursuant to either subsection (b) (1) or (b) (2) of this

Section :

1)

Gross electrical output-a. The average of the unit's two most recent years

of control period gross electrical output, if available ; otherwise it will be

the unit's most recent control period's gross electrical output . If a generator

is served by two or more units, the gross electrical output of the generator

shall be attributed to each unit in proportion to the unit's share of the total

control period heat input of such units for the control period . The unit's

converted gross electrical output shall be calculated as follows

:

A) If the unit is coal-fired :

CGO (in MWh) = GO ? MWh ? 1.0 ;

B) If the unit is oil-fired :

CGO (in MWh) = GO ? MWh ? 0.6 ;

C) If the unit is neither coal-fired nor oil-fired

:

CGO (in MWh) = GO ? MWh ? 0.4 .

2)

Heat input-

.

.L The average of the unit's two most recent years of control

period heat input ; otherwise the unit's most recent control period's heat input,

e .g . .

for the 2012 control period, the average of the unit's heat input from the

2006 and 2007 control periods

. If the unit does not have heat input from the

2006 and 2007 control periods, the heat input from the 2007 control period shall

be used . The unit's converted gross electrical output shall be calculated as

follows :

I

I

I

A) If the unit is coal-fired :

CGO (in MWh) = HI (in mmBtu) ? 0 .0967 ;

CGO (in MWh)

A)

= HI

If the unit is coal-fired :

(in mmBtu) ? 0 .0967 ;

CGO (in MWh)

B) If the unit is oil-fired :

= HI (in mmBtu) ? 0.0580 ; or

CGO

(in MWh)

C)

= HI

If the unit is neither coal-fired nor oil-fired :

(in mmBtu) ? 0 .0387 .

---

c)

For control period 2014 and thereafter, the unit's gross electrical output

will be the average of the

unit's

two most recent ycraroof control perioda

gross electrical output, if available ; otherwise it will be the unit's most

recent control period's gross electrical output . If a generator is served by

two or more units, the gross electrical output of the generator will be

attributed to each unit in proportion to the unit's share of the total control

period heat input of these units for the control period

. The unit's converted

gross electrical output will be calculated as follows

:

d)

For a unit that is a combustion turbine or boiler and has equipment used

to produce electricity and useful thermal energy for industrial, commercial,

heating, or cooling purposes through the sequential use of energy, the Agency

will add the converted gross electrical output calculated for electricity

pursuant to ^ubfs^`---suhsertiou (a), (b), or (c) of this Section to the

converted useful thermal energy (CUTE) to determine the total converted gross

electrical output for the unit (TCGO) . The Agency will determine the converted

useful thermal energy by using the average of the unit's control period useful

thermal energy for the prior two control periods, if available ; otherwise the

unit's control period useful thermal output for the prior year will be used .

The converted useful thermal energy will be determined using the following

equations :

1)

If the unit is coal-fired :

CUTE (in MWh) = UTE (in mmBtu) ? 0.2930 ;

2)

If the unit is oil-fired :

CUTE (in MWh) = UTE (in mmBtu) ? 0.1758 ; or

3)

If the unit is neither coal-fired nor oil-fired :

CUTE (in MWh) = UTE (in mmBtu) ? 0 .1172 .

e)

The CAIR NOx unit's converted gross electrical output and converted useful

thermal energy in subsections (a) (1), (b) (1), (c), and (d) of this Section for

each control period will be based on the best available data reported or

available to the Agency for the CAIR NOx unit pursuant to the provisions of

Section 225 .450 .

I

f)

The CAIR NOx unit's heat input in subsections (a) (2) and (b) (2) of this

Section for each control period will be determined in accordance with 40 CFR 75,

as incorporated by reference in Section 225 .140 .

B) If the unit is oil-fired :

CGO (in MWh) = HI (in mmBtu)

?

0.0580 ; or

CGO (in MWh)

C)

= HI

If the unit is neither coal-fired nor oil-fired

:

(in mmBtu) ? 0

.0387

.

1)

If the unit is coal-fired

:

CGO (in MWh) = GO ? 1 .0 ;

2) If the unit is oil-fired :

CGO (in MWh) = GO ?

0 .6

; or

3) If the unit is neither coal-fired nor oil-fired :

CGO (in MWh) = GO ? 0.4 .

---

(Source : Added at 31

Ill . Reg . ,

effective -)

Section

225 .440 Annual Allocations

a)

For

the 2009 control

period, and each control period thereafter, the

Agency will allocate

CAIR NOx allowanccoy

to all CAIR NOx units in Illinois for

which the Agency has calculated the total converted gross electrical output

pursuant to Section 225

.435, a total amount of CAIR NOx allowances equal to tons

of NOx emissions in the CAIR NOx Annual Trading budget available for allocation

as determined in Section 225

.425 and allocated pursuant to this

Section-

225

.440 . y

b)

The Agency will allocate CAIR NOx allowances to each CAIR NOx unit on a

pro-rata basis using the unit's total converted gross electrical output

calculated pursuant to Section 225

.435

. If there are insufficient allowances to

allocate whole allowances pro rata, these unallocated allowances will be

retained by the Agency and will be available for allocation in later control

periods .

(Source

: Added at 31 Ill

. Reg .

, effective -)

Section 225

.445

New unit set-Aside (NUSA)

For the 2009 control period and each control period thereafter, the Agency will

allocate CAIR NOx allowances from the NUSA to CAIR NOx units that commenced

commercial operation on or after January 1, 2006, and do not yet have an

allocation for the particular control period pursuant to Section 225

.440, in

accordance with the following procedures

:

a)

Beginning with the 2009 control period and each control period thereafter,

the Agency will establish a separate NUSA for each control period

. Each NUSA

will be allocated CAIR NOx allowances equal to

&five

percent of the amount of

tons of NOx emissions in the base CAIR NOx Annual Trading budget in Section

225 .425 .

b)

The CAIR designated representative of a new CAIR NOx unit may submit to

the Agency a request, in a format specified by the Agency, to be allocated CAIR

NOx allowances from the NUSA„_ starting with the first control period after the

control period in which the new unit commences commercial operation and until

the first control period for which the unit may use CAIR NOx allowances

allocated to the unit pursuant to Section 225

.440 . The NUSA allowance

allocation request may only be submitted after a new unit has operated during

one control period, and no later than March 1 of the control period for which

allowances from the NUSA are being requested

.

c)

In a NUSA allowance allocation request pursuant to subsection (b) of this

Section, the CAIR designated representative must provide in its request

information for gross electrical output and useful thermal energy, if any, for

the new CAIR NOx unit for that control period

.

I

I

I

d)

The Agency will allocate allowances from the NUSA to a new CAIR NOx unit

using the following procedures :

1)

For each new CAIR NOx

unit,

the unit's gross electrical output for the

most recent control period will be used to calculate the unit's gross electrical

output

. If a generator is served by two or more units, the gross electrical

---

output of the generator

will be attributed

to each unit

in proportion to the

unit's share of the total control period heat input of these units for the

control period

. The new unit's converted gross electrical output will be

calculated as follows

:

A)

If the unit is coal-fired

:

CGO (in MWh) = GO ? 1.0 ;

B)

If the unit is oil-fired :

CGO (in Mwh) = GO ? 0 .6

; or

C)

If the unit is neither coal-fired nor oil-fired

:

CGO (in MWh) = GO ? 0 .4

.

2)

If the unit is a combustion turbine or boiler and has equipment used to

produce electricity and useful thermal energy for industrial, commercial,

heating, or cooling purposes through the sequential use of energy, the Agency

will add the converted gross electrical output calculated for electricity

pursuant to subsection (d) (1) of this Section to the converted useful thermal

energy to determine the total converted gross electrical output for the unit

.

The Agency will determine the converted useful thermal energy using the unit's

useful thermal energy for the most recent control period

. The converted useful

thermal energy will be determined using the following equations

:

C)

If the unit is neither coal-fired nor oil-fired

:

CUTE (in MWh) =

UTE (in mmBtu) ? 0.1172

.

3)

The gross electrical output and useful thermal energy in subsections

(d) (1) and (d) (2) of this section for each control period will be based on the

best available data reported or available to the Agency for the CAIR NOx unit

pursuant to the provisions of Section 225

.450 .

4)

The Agency will determine a unit's unprorated allocation

(UAV) using the

unit's converted gross electrical output plus the unit's converted useful

thermal energy, if any, calculated in subsections (d) (1) and (d) (2) of this

Section, converted to approximate NOx tons (the unit's unprorated allocation),

as follows :

Uy=T000v * (1

.0 lhs/MWh)2000 lhs/tern

Where :

UAv=

unprorated allocation to a new CAIR NOx unit

.

T000v=

total

converted gross electrical output for a

new CAIR NOx unit .

5)

The Agency will allocate CAIR NOx allowances from the NUSA to new CAIR NOx

units as follows :

I

I

I

A)

If the NUSA for the control period for which CAIR NOx allowances are

requested has a number of allowances greater than or equal to the total

unprorated allocations for all new units requesting allowances, the Agency will

allocate the number of allowances using the unprorated allocation determined for

that unit pursuant to subsection (d) (4) of this Section

.

A)

If the unit is coal-fired :

CUTE (in MWh) = UTE

(in mmBtu) ? 0 .2930 ;

B)

If the unit is oil-fired

:

CUTE (in MWh) =

UTE (in mmBtu) ? 0

.1758 ; or

---

I

I

B)

If

the NUSA for the

control period

for which the allowances are requested

has a number of CAIR NOx allowances less than the total unprorated allocation to

all new CAIR NOx units requesting allocations, the Agency will allocate the

available allowances for new CAIR NOx units on a pro-rata basis, using the

unprorated allocation determined for that unit pursuant to subsection (d) (4) of

this Section

. If there are insufficient allowances to allocate whole

allowances, the unallocated allowances will be retained by the Agency and will

be available for allocation in a later control period

.

C)

If the gross electrical output or useful thermal energy reported to the

Agency &nn_>~

suan to

subsection (d) of this Section is later determined to be

greater than the unit's actual gross electrical output or useful thermal energy

for the applicable control period, the Agency will reduce the unit's allocation

from the NUSA for the current control period to account for the excess

allowances allocated in the prior control period or periods

.

e)

The Agency will review each NUSA allowance allocation request pursuant to

subsection (b) of this Section

. The Agency will accept a NUSA allowance

allocation request only if the request meets, or is adjusted by the Agency as

necessary to meet, the requirements of this Section

225 .115 . E

f)

By June 1 of the applicable control period, the Agency will notify each

CAIR designated representative that submitted a NUSA allowance request of the

amount of CAIR NOx allowances from the NUSA, if any, allocated for the control

period to the new unit covered by the request

.

g)

The Agency will allocate CAIR NOx allowances to new units from the NUSA no

later than October 31 of the applicable control period

.

h)

After a new CAIR NOx unit has operated in one control period, it becomes

an existing unit for the purposes of Section 225

.440 only, and the Agency will

allocate CAIR NOx allowances for that unit, for the control period commencing

four years in the future, pursuant to Section 225

.440

. For example, if a unit

commences commercial operation in 2009, in 2010, the Agency will allocate to

that unit allowances pursuant to Section 225

.440 for the 2014 control period

.

The new CAIR NOx unit will continue to receive CAIR NOx allowances from the NUSA

according to this Section until the unit is eligible to use the CAIR NOx

allowances allocated to the unit pursuant to Section 225

.440 .

i)

If, after the completion of the procedures in subsection (c) of this

Section for a control period, any unallocated CAIR NOx allowances remain in the

NUSA for the control period, the Agency will, at a minimum, accrue those CAIR

NOx allowances for future control period allocations to new CAIR NOx units

. The

Agency may from time to time elect to retire CAIR NOx allowances in the NUSA

that are in excess of 15,881 for the purposes of continued progress toward

attainment and maintenance of National Ambient Air Quality Standards pursuant to

the CAA .

I

I

(Source

: Added at 31 Ill

. Reg .

, effective -)

Section 225

.450

Monitoring, Recordkeeping and Reporting Requirements for

Gross Electrical Output and Useful Thermal Energy

a)

By January 1, 2008, or by the date of commencing commercial operation,

whichever is later, the owner or operator of the CAIR NOx unit must operate a

system for measuring gross electrical output that is consistent with the

---

I

I

requirements of

either 40 CFR 60 or 75 ;

must measure gross

electrical output in

MW hro

using such a system

; and must record the output of the measurement

system

. If a generator is served by two or more units, the information to

determine each unit's heat input for that control period must also be recorded,

so as to allow each unit's share of the gross electrical output to be

determined

. If heat input data is used, the owner or operator must comply with

the applicable provisions QL,40 CFR 75, as incorporated by reference in Section

225

.140 .

b)

For a CAIR NOx

unit that is a cogeneration

unit. by

January 1, 2008, or by

the date the CAIR NOx

unit commences to produce useful thermal energy, whichever

is later, the owner or operator of

a-€A

fl

unit with

cogcncra ti on

apabiliticn

must install, calibrate, maintain, and operate meters for steam

flow in lbs/hr, temperature in degrees Fahrenheit, 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

NOx unit that produces

useful thermal energy but uses an energy transfer medium other than steam,

e .g .,

hot water or glycol, must install, calibrate, maintain, and operate the

necessary meters to measure and record the necessary data to express the useful

thermal energy produced, in mmBtu/hr, on a continuous basis

. If the CAIR NOx

unit ceases to produce useful thermal energy, the owner or operator may cease

operation of the meters, provided that operation of these meters must be resumed

if the CAIR

NOx

unit resumes production of useful thermal energy

.

I

I

c)

The owner or operator of a CAIR

NOx

unit must either report gross

electrical output data to the Agency or comply with the applicable provisions

for providing heat input data

to NRRPA

as follows :

1)

By June 1, 2007, the gross electrical output for control periods 2001,

2002, 2003, 2004 and 2005, if available, and

; the unit's useful thermal energy

data, if applicable

. If a generator is served by two or more units, the

documentation needed to determine each unit's share of the heat input of such

units for that control period must also be submitted

. If heat input data is

used, the owner or operator must comply with the applicable provisions QL40 CFR

75, as incorporated by reference in Section 225

.140 .

2)

By June 1, 2008, the gross electrical output for control periods 2006 and

2007, if available, and the unit's useful thermal energy data, if applicable

.

If a generator is served by two or more units, the documentation needed to

determine each unit's share of the heat input of such units for that control

period must also be submitted

. If heat input data is used, the owner or

operator must comply with the applicable provisions of 40 CFR 75, as

incorporated by reference in Section 225

.140 .

d)

Beginning with

y ar

2008, the CAIR designated representative of the CAIR

NOx unit must submit to the Agency quarterly, by no later than April 30, July

31, October 31, and January 31 of each year, information for the CAIR NOx unit's

gross electrical output, on a monthly basis for the prior quarter, and, if

applicable, the unit's useful thermal energy for each month

.

e)

The owner or operator of a CAIR

NOx

unit must maintain on-site the

monitoring plan detailing the monitoring system, maintenance of the monitoring

system, including quality assurance activities pursuant to the requirements of

40 CFR 60 and 75, including the applicable provisions for the measurement of

gross electrical output for the CAIR NOx

-

+ •

9-. '

--- •u

and, if

applicable, for new units

. The monitoring plan must include b t is not limited

to

:

---

1)

A description of the system to be used for the measurement of gross

electrical output pursuant to Section 225 .450(a), including a list of any data

logging devices, solid-state kW meters, rotating kW meters, electromechanical kW

meters, current transformers, transducers, potential transformers, pressure

taps, flow venturi, orifice plates, flow nozzles, vortex meters, turbine meters,

pressure transmitters, differential pressure transmitters, temperature

transmitters, thermocouples, resistance temperature detectors, and any equipment

or methods used to accurately measure gross electrical output .

2)

A certification statement by the CAIR designated representative that all

components of the gross electrical output system have been tested to be accurate

within three percent and that the gross electrical output system is accurate to

within ten percent .

f)

The owner or operator of a CAIR NOx unit must retain records for at least

SZivc years from the date the record is created or the data j„g--collected 4n,ndyr

subsections (a) and (b) of this Section, and the

reports.

.

. submitted to the

Agency and USEPA in accordance with subsections (c) and (d) of this Section .

The owner or operator of a CAIR NOx unit must retain the monitoring plan

required in subsection (e) of this Section for at least five years from the date

that it is replaced by a new or revised monitoring plan .

(Source

: Added at 31 Ill

. Reg . ,

effective

-)

Section 225 .455

Clean Air Set-Aside (CASA)

a)

A project sponsor may apply for allowances from the CASA for sponsoring an

energy efficiency and conservation, renewable energy, or clean technology

project as set forth in Section 225 .460 by submitting the application required

by Section 225 .470 .

b)

Notwithstanding subsection (a) of this Section, a project sponsor with a

CAIR NOx source that is out of compliance with this subpart for a given control

period may not apply for allowances from the CASA for that control period

. If a

source receives CAIR NOx allowances from _he,CASA

and then is subsequently found

to have been out of compliance with this Subpart for the applicable control

period or periods, the project sponsor must restore the CAIR NOx allowances that

it received pursuant to its CASA request or an equivalent number of CAIR NOx

allowances to the CASA within six months

e€atter receipt of an Agency notice

that NOx allowances must be restored

. These allowances will be assigned to the

fund from which they were distributed .

c)

CAIR NOx allowances from JLg,__CASA will be allocated in accordance with the

procedures in Section 225 .475 .

d)

The project sponsor may submit an application that aggregates two or more

projects under a CASA project category that would individually result in less

than one allowance, but that equal at a minimum one whole allowance when

aggregated .

(Source : Added at 31 Ill . Reg .

effective

-)

I

I

Section 225

.460

Energy Efficiency and Conservation, Renewable Energy, and

Clean

---

Technology

Projects

a)

Energy efficiency and conservation project means any of the following

projects implemented and located in Illinois

:

1)

Demand side management projects that reduce overall power demand by using

less energy- include

:

A)

Smart building management software that more efficiently regulates power

flows .

B)

The use of or replacement to high efficiency motors, pumps, compressors,

or steam systems

.

C)

Lighting retrofits .

2)

Energy efficient new building construction projects include

:

A)

ENERGY STAR-qualified new home projects

.

B)

Measures to reduce or conserve energy consumption beyond the requirements

of the Illinois Energy Conservation Code for Commercial Buildings 4j20 ILCS

687/6-3}j .

C)

New residential construction projects that qualify for Energy Efficient

Tax Incentives pursuant to the Energy Policy Act of

2005,

2005 (42 U.E .C .&L5L

15801 (2005j) .

3)

Supply-side energy efficiency projects include projects implemented to

improve the efficiency in electricity generation by coal-fired power plants- and

the efficiency of electrical transmission and distribution systems

.

4)

Highly efficient power generation projects, such as, but not limited to,

combined cycle projects, combined heat and power, and microturbines

. To be

considered a highly efficient power generation project pursuant to this

subsection (a) (4),

a project must meet the following

applicable thresholds and

criteria liotcd bclow

:

A)

For combined heat and power projects generating both electricity and

useful thermal energy for space, water, or industrial process heat, a rated-

energy efficiency of at least 60 percent

and in : the DrnieQt shall

not_Jag a CAIR

NOx unit .

B)

For combined cycle projects rated at greater than 0

.50 MW, a rated-energy

efficiency of at least 50 percent

.

C)

For microturbine projects rated at or below 0

.50 MW and all other

projects, gyrated-energy efficiency of at least 40 percent

.

b)

Renewable energy project means any of the following projects implemented

and located in Illinois :

I

I

I

1)

Zero-emission electric generating projects, including wind, solar (thermal

or photovoltaic), and hydropower projects

. Eligible hydropower plants are

---

restricted to

new generators

; that are not replacements of existing generators,

that e- me^ccomm

n d

operation on or after January 1, 2006,

and=

do not

involve the significant expansion of an existing dam or the construction of a

new dam .

2)

Renewable energy units are those units that generate electricity using

more than 50 percent of the heat input, on an annual basis, from dedicated crops

grown for energy production or the capture systems for methane gas from

landfills, water treatment plants or sewage treatment plants, and organic waste

biomass, and other similar sources of non-fossil fuel energy

. Renewable energy

projects do not include energy from incineration by burning or heating of waste

wood, tires, garbage, general householi

waste,

institutional lunchroom e~wasste,_

office waste, landscape waste, or construction or demolition debris

.

c)

Clean technology project for reducing emissions from producing electricity

and useful thermal energy means any of the following projects implemented and

located in Illinois :

1)

Air pollution control equipment upgrades at existing coal-fired EGUs, as

follows

: installation of flue gas desulfurization (FGD) for control of S02

emissions

; installation of a baghouse for control of particulate matter

emissions

; and installation of selective catalytic reduction (SCR), selective

non-catalytic reduction (SNCR), or other add-on control devices for control of

NOx emissions

. Air pollution control upgrade projects do not include the

addition of low NOx burners, overfired air techniques or gas reburning

techniques for control of NOx emissions

; projects involving flue gas

conditioning techniques or upgrades, or replacement of electrostatic

precipitators

; or addition of_dg

activated carbon injection or other sorbent

injection system for control of mercury

. For this purpose, a unit will be

considered "existing" after it has been in commercial operation for at least

eight years .

2)

Clean coal technologies projects include

:

A)

Integrated gasification combined cycle (IGCC) plants

.

B)

Fluidized bed coal combustion

.

d)

In addition to those projects excluded in subsections (a) through (c) of

this Section, the following projects are also not energy efficiency and

conservation, renewable energy, or clean technology projects

:

1)

Nuclear power projects

.

2)

Projects required to meet emission standards or technology requirements

under State or federal law or regulation, except that allowances may be

allocated for

:

A)

The installation of a baghouse .

B)

Projects undertaken pursuant to Section 225

.233 .

3)

Projects used to meet the requirements of a court order or consent decree,

except that allowances may be allocated for

:

I

A)

Emission rates or limits achieved that are lower than what is required to

meet the emission rates or limits for S02 or NOx, or for installing a baghouse

---

I

as provided for in a court order or consent decree entered into before May 30,

2006 .

B)

Projects used to meet the requirements of a court order or consent decree

entered into on or after May 30, 2006, if the court order or consent decree does

not specifically preclude such allocations .

4)

A Supplemental Environmental Project (SEP) .

e)

Applications for projects implemented and located in Illinois that are not

specifically listed in subsections (a) through (c) of this Section, and that are

not specifically excluded by definition in subsections (a) through (c) of this

Section or by specific exclusion in subsection (d) of this Section, may be

submitted to the Agency . The application must designate which category or

categories from those listed in subsections (a) (1) through (c) (2) (A) of this

Section best fitof t. the proposed project and the applicable formula pursuant to

Section 225 .465(b) to calculate the number of allowances that it is requesting .

The Agency will determine whether the application is approvable based on a

sufficient demonstration by the project sponsor that the project is a new type

of energy efficiency, renewable energy, or clean technology project, similar in

its effects as the projects specifically listed in stibseetienzu

(a)

through (c) (2) (A) of this Section .

f)

Early adopter projects include projects that meet the criteria for any

energy efficiency and conservation, renewable energy, or clean technology

projects listed in subsections (a), (b), (c), and (e) of this Section and

commence construction between July 1, 200G,2006 and December 31, 2012 .

(Source : Added at 31 Ill . Reg . effective -)

Section 225 .465

Clean Air Set-Aside (CASA) Allowances

a)

The CAIR NOx allowances for the CASA for each control period will be

assigned to the following categories of projects :

Phase T-

PhaeerPhase

II

(2009-2014) (2015 and thereafter)

1)

Energy Efficiency and Conservation/- 91 ,15

7G2G

Renewable Energy

--ay14976252) Air Pollution Control Equipment

3011

317

Upgrades-3,3A1131753)

Clean Coal Technology

4573

3010 1457~1A104) Early Adopters 1G2G

1271

h)

The following formulas must be used to determine the number of

CASA allowances that may be allocated to a project per control period :

1)

For an energy efficiency and conservation project pursuant to

Ccctiona$ertinu 225 .460(a)(1) through (a) (4)(A), the number of allowances must

be calculated using the number of megawatt hours of electricity that was not

consumed during a control period and the following formula :

I

I

I

A

(MWhc) ? (1 .5 lb/MWh) / 2000 lb

Where :

---

A

=

The number

of allowances for a particular project .MWhc

The number of megawatt hours of electricity

conserved or generated during

a control period by a

project .

2)

For a zero emission electric generating

projcctaoroiect pursuant to

Section 225

.460(b)(1), the number of allowances must be calculated using the

number of megawatt hours of electricity generated during a control period and

the following formula :

A

(MWhg)

? (2 .0 lb/MWh) / 2000 lb

Where :

A

=

The number of allowances for a particular

projcctMwhg

prnirct.MWha=

The number of megawatt hours of electricity

generated

during a control period by a project .

3)

For a renewable energy emission unit pursuant to Section 225

.460(b)(2),

the number of allowances must be calculated using the number of MWhs of

electricity generated during a control period and the following formula

:

A

(MWhg) ? (0

.5 lb/MWh) / 2000 lb

Where :

A

=

The number of allowances for a particular project

.

MWhg

=

The number of MW hours of electricity generated

during a

control period by a project .

4)

For an air pollution control equipment upgrade project pursuant to Section

225

.460(c)(1), the number of allowances will be calculated as follows

:

A)

For NOx or S02 control projects, by determining the difference in emitted

NOx or S02 per control period using the emission rate before and after

replacement or improvement, and the following formula

:

A=

(MWhg) ? K ?

(ERB lb/MWh - ERA lb/MWh) / 2000 lb

Where :

A

=

The number of allowances for a particular

project .

MWhg =

The number of megawatt hours of electricity generated during a

control period by a project . K

=

The pollutant factor

: for NOx, K=

0 .1 ; and for 502, K = 0 .05.ERB

=

Average NOx or S02 emission rate based

on

CEMS data from the most recent two

control periods prior to the

replacement or

improvement of the control equipment in

lb/MWh, unless

subject to a court order

or consent decree

. For units subject to a court

order or consent decree entered into before May 30, 2006, ERB is limited to

emission rates that are lower than the emission rate required in the consent

decree or court order

. For a court order or consent decree entered into after

May 30, 2006, ERB is limited to the lesser of the emission rate specified in the

court order or consent decree or the actual average emission rate during the

control period

. If such limit is not expressed in lb/MWh, the limit must be

converted into lb/MWh using a heat rate of 10 mmBtu/1 MW

.ERA

=

Annual

NOx or 902 average emission rate

for the applicable control period data

based

on CEMS data in lb/MWh .

B)

For a baghouse project :

A =

(MWhg) ? (Q lb/MWh) / 2000 lb

Where

:

I

A = The number of allowances for a

particular project .

---

MWhg =

The number of MWh of electricity generated during a control

period or the portion of a control period that the units were controlled by the

baghouse .Q =

If a baghouse was not installed pursuant to a consent decree

or court order, Q shall cqual

0 .2 .

2+_1 If a baghouse was installed pursuant to a consent decree or court order

wh#ehfiha assigns a Q factor, then Q cqualo

the factor established in the

consent decree or court order but must not exceed a factor of 0 .2 .

3}=

If a baghouse was installed pursuant to a consent decree or court order

whichthat

does not assign a Q factor then Q shall equal :

•

= 0.25 - (P 3U ERq)

Where :

•

= If the most recent control period's average PM emission rate was based on PM

CEMS data,

r

equals 1 .0 ; otherwise P*-1

.1 .ERq = The magnitude of

the

most

recent control period's average PM emission rate in lb/MWh exiting the baghouse,

subject to the following limits

:I£ P = 1 .0, then 1/10 = ERq = 2/lOIf P = 1 .1,

then 1/11 = ERq = 2/11

•

If the ERq is less than the lower limit, the lower limit shall be used .

•

If ERq is greater than the upper limit, the upper limit shall be used .

If ERq~FRn is not expressed in lb/MWh, the number must be converted to

lb/MWh using a heat ratio of 10 mmBtu/1 MW .

5)

For highly efficient power generation and clean technology projects

pursuant to CcctionoSection 225 .460

(a)(4)(B), (a)(4)(C), and (c)(2), the number

of allowances must be calculated using the number of megawatt hours of

electricity the project generates during a control period and the following

formula :

A

=

(MWhg) ? (1.0 lb/MWh - ER lb/MWh) / 2000 lb

Where :

A

=

The number of allowances for a particular project .MWhg

The number of megawatt hours of electricity generated during a control

period by a project .

ER =

Annual average NOx emission rate based on

CEMS

data in lb/MWh .

6)

For a CASA project that commences construction before December 31, 2012,

in addition to the allowances allocated pursuant to subsections (b) (1) through

(b) (5) of this Section, a project sponsor may also request additional allowances

pursuant to the early adopter project category pursuant to Section 225 .460(e)

based on the following formula :

A

1 .0 + 0.10

? S Ai

Where

:

A

=

The number of allowances for a particular project as

determined in subsections (b) (1) through (b) (5) of

this Section .Ai

=

The number of allowances as determined in

subsection (b)(1),

(b)(2), (b)(3),

(b) (4) or (b) (5) of

this Section for a given project .

(Source : Added at 31 111 . Reg . , effective -)

Section 225 .470

Clean Air Set-Aside (CASA) Applications

I

I

I

a)

A project sponsor may request allowances if the project commenced

construction on or after the dates listed belewin this subsection .

The project

sponsor may request and be allocated allowances from more than one CASA category

for a project, if applicable

.

---

1)

Demand

side management, energy efficient new construction, and supply side

energy efficiency and conservation projects that commenced construction on or

after January 1, 2003

;

2)

Fluidized bed coal combustion projects, highly efficient power generation

construction

operations projects,

on or after

or renewable

January 1,

energy

2001

;

emission

and

units,

which that

commenced

3)

All other projects on or after July 1, 2006

.

b)

Beginning with the 2009 control period and each control period thereafter,

a project sponsor may request allowances from the CASA

. The application must be

are

submitted

being requestedto

the Agency

.

by May 1 of the control period for which the allowances

c)

The allocation will be based on the electricity conserved or generated in

the control period preceding the calendar year in which the application is

submitted

. To apply for a CAIR NOx allocation from the CASA, project sponsors

must provide the Agency with the following information

:

1)

Identification of the project sponsor, including name, address, type of

organization, certification that the project sponsor has met the definition of

principals

"project sponsor"

or corporate

as set

officialsforth

in

.

Section 225

.130, and namc(o)Dames

of the

2)

The number of the CAIR NOx general or compliance account for the project

and the name of the associated CAIR account representative

.

3)

A description of the project or projects, location, the role of the

project sponsor in the projects, and a general explanation of how the amount of

energy conserved or generated was measured, verified, and calculated, and the

number of allowances requested with the supporting calculations

. The number

of allowances requested will be calculated using the applicable formula from

Section 225 .470(b) .

4)

Detailed information to support the request for allowances, including the

following types of documentation for the measurement and verification of the NOx

emissions reductions, electricity generated, or electricity conserved using

established measurement verification procedures, as applicable

. The measurement

and verification required will depend on the type of project proposed

.

A)

As applicable, documentation of the project's base and control period

conditions and resultant base and control period energy data, using the

procedures and methods included in M&V Guidelines

: Measurement and Verification

for

other

Federal

method

Energy

approved

Projects,

by the

incorporated

Agency

. Examples

by reference

include

:

in Section 225

.140, or

i)

Energy consumption and demand profiles

;

ii) Occupancy type

;

iii) Density and periods

;

I

I

iv) Space conditions or plant throughput for each operating period and season-

(Fort"

example, in a building this would include the light level and color,

space temperature, humidity and ventilation)

;

---

v)

Equipment inventory, nameplate data, location,

and

condition ; and

vi)

Equipment operating practices (schedules and set points, actual

temperatures/pressures)

:

B)

Emissions data, including, if applicable, CEMS data ;

C)

Information for rated-energy efficiency including supporting

documentation and calculations ; and

D)

Electricity, in MWh generated or conserved for the applicable control

period .

5)

Notwithstanding the requirements of ^•

ctiona,SUhsQctiOn (c) (4) of this

Section, applications for fewer than five allowances may propose other reliable

and applicable methods of quantification acceptable to the Agency

.

6)

Any additional information requested by the Agency to determine the

correctness of the requested number of allowances, including site information,

project specifications, supporting calculations, operating procedures, and

maintenance procedures .

7)

The following certification by the responsible official for the project

sponsor and the applicable CAIR account representative for the project :

"I am authorized to make this submission on behalf of the project sponsor and

the holder of the CAIR NOx general account or compliance account for which the

submission is made . I certify under penalty of law that I have personally

examined, and am familiar with, the statements and information submitted in this

application and all its attachments

. Based on my inquiry of those individuals

with primary responsibility for obtaining the information, I certify that the

statements and information are to the best of my knowledge and belief true,

accurate, and complete . I am aware that there are significant penalties for

submitting false statements and information or omitting required statements and

information ."

d)

A project sponsor may request allowances from the CASA for each project

for

a total number of control periods not to exceed the number of control

periods listed be4ewjmthis S,xhsectina . After a project has been allocated

allowances from the CASA, subsequent requests for the project from the project

sponsor must include the information required by subsections (c) (1), (c)(2),

(c) (3) and (c) (7) of this Section, a description of any changes

; or further

improvements made to the project, and information specified in subsections

(c) (5) and (c) (6) as specifically requested by the Agency .

1)

For energy efficiency and conservation projects (except for efficient

operation and renewable energy projects), for a total of eight control periods .

2)

For early adopter projects, for a total of ten control periods .

3)

For air pollution control equipment upgrades, for a total of 15 control

periods .

I

I

I

I

4)

For renewable energy projects, clean coal technology, and highly efficient

power generation projects, for each year that the project is in operation

.

---

e)

A project sponsor must keep copies of all CASA applications and the

documentation used to support the application for at least five years

.

(Source

: Added at 31 Ill . Reg . ,

effective -)

Section 225 .475

Agency Action on Clean Air Set-Aside (CASA) Applications

a)

By September 1, 2009,

and each September 1 thereafter, the Agency will

determine the total number of allowances that are approvable for allocation to

project sponsors based upon the applications submitted pursuant to Section

225 .470 .

1)

The Agency will determine the number of CAIR

NOx allowances that are

approvable based on the formulas and the criteria for these projects

. The

Agency will notify a project sponsor within 90 days after receipt of an

application if the project is not approvable, the number of allowances requested

is not approvable, or additional information is needed by the Agency to complete

its review of the application

.

2)

If the total number of CAIR

NOx allowances requested for approved projects

is less than or equal to the number of CAIR

NOx allowances in the CASA project

category, the number of allowances that are approved will be allocated to each

CAIR NOx

compliance or general account .

3)

If more CAIR NOx

allowances are requested than the number of CAIR

NOx

allowances in a given CASA project category, allowances will be allocated on a

pro-rata basis based on the number of allowances available, subject to further

adjustment as provided for by subsection (b) of this Section . CAIR

NOx

allowances will be allocated, transferred, or used as whole allowances

. The

number of whole allowances will be determined by rounding down for decimals less

than 0 .5 and rounding up for decimals of 0

.5 or greater .

b)

For control periods 2011 and thereafter, ify

u

there are, after the completion of the procedures in subsection (a) of

this Section for a control period, any CAIR

NOx allowances not allocated to a

CASA project for the control

period-.-34-

TheQth

remaining allowances will

accrue in each CASA project category up to twice the number of allowances that

are assigned to the project category for each control period as set forth in

Section 225 .465 .

2)

If any allowances remain after allocations pursuant to subsection

(ab)(1)

of this Section, the Agency will allocate these allowances pro rata to projects

that received fewer allowances than requested, based on the number of allowances

not allocated but approved by the Agency for the project under CASA

. No project

may be allocated more allowances than approved by the Agency for the applicable

control period .

I

3)

If any allowances remain after the allocation of allowances pursuant to

subsection (b) (2) of this Section, the Agency will then distribute pro rata the

remaining allowances to project categories that have fewer than twice the number

of allowances assigned to that project category

. The pro rata distribution will

be based on the difference between two times the project category and the number

of allowances that remain in the project category

.

---

TITLE 35 :

ENVIRONMENTAL PROTECTION

SUBTITLE B : AIR

POLLUTION

CHAPTER I

: POLLUTION CONTROL BOARD

SUBCHAPTER c :

EMISSION STANDARDS AND LIMITATIONS

FOR STATIONARY SOURCES

PART 225

CONTROL OF EMISSIONS FROM LARGE COMBUSTION SOURCES

SUBPART A

: GENERAL PROVISIONS

Section

225 .100

Severability

225 .120

Abbreviations and Acronyms

225 .130

Definitions

225

.140

Incorporations by Reference

225 .150

Commence Commercial Operation

SUBPART B

: CONTROL OF MERCURY EMISSIONS

FROM COAL-FIRED ELECTRIC GENERATING UNITS

Section

225 .200

225 .202

225 .205

225

.210

225

.220

225 .230

225 .232

225 .233

225 .234

225 .235

225 .237

225 .238

225 .240

225 .250

Monitoring

225 .260

225 .261

225 .263

225 .265

225 .270

225 .290

225 .295

Purpose

Measurement Methods

Applicability

Compliance Requirements

Clean Air Act Permit Program (CAAPP) Permit Requirements

Emission Standards for EGUs at Existing Sources

Averaging Demonstrations for Existing Sources

Multi-Pollutant Standard (MPS)

Temporary Technology-Based Standard for EGUs at Existing Sources

Units Scheduled for Permanent Shut Down

Emission Standards for New Sources with EGUs

Temporary Technology-Based Standard for New Sources with EGUs

General Monitoring and Reporting Requirements

Initial Certification and Recertification Procedures

Out of Control Periods for Emission Monitors

Additional Requirements to Provide Heat Input Data

Monitoring of Gross Electrical Output

Coal Analysis for Input Mercury Levels

Notifications

Recordkeeping and Reporting

Treatment of Mercury Allowances

SUBPART C

: CLEAN AIR ACT INTERSTATE

RULE (CAIR) SO2 TRADING PROGRAM

Section

225 .300

Purpose

225 .305

Applicability

225 .310

Compliance Requirements

225 .315

Appeal Procedures

225 .320

Permit Requirements

225 .325

Trading Program

SUBPART D

: CAIR NOx ANNUAL TRADING PROGRAM

for Emissions

---

Section

225 .400

Purpose

225 .405

Applicability

225 .410

Compliance Requirements

225 .415

Appeal Procedures

225 .420

Permit

Requirements

225 .425

Annual Trading

Budget

225 .430

Timing for

Annual Allocations

225 .435

Methodology for Calculating Annual Allocations

225 .440

Annual Allocations

225 .445

New Unit Set-Aside (NUSA)

225 .450

Monitoring, Recordkeeping and Reporting Requirements for Gross

Electrical Output and Useful Thermal Energy

SUBPART F : COMBINED POLLUTANT STANDARDS

I

225 .455

225 .460

Technology

225 .465

225 .470

225 .475

225 .480

Clean Air Set-Aside (CASA)

Energy Efficiency and Conservation, Renewable Energy, and Clean

Projects

Clean Air Set-Aside (CASA) Allowances

Clean Air Set-Aside (CASA) Applications and

RccordIc

cping

Agency Action on Clean Air Set-Aside (CASA) Applications

Compliance Supplement Pool

SUBPART E

:

Section

225 .500

CAIR NOx OZONE SEASON TRADING PROGRAM

Purpose

225 .505

Applicability

225 .510

Compliance Requirements

225 .515

Appeal Procedures

225 .520

Permit Requirements

225 .525

Ozone Season Trading Budget

225 .530

Timing for Ozone Season Allocations

225 .535

Methodology for Calculating Ozone Season Allocations

225 .540

Ozone Season Allocations

225 .545

New Unit Set-Aside (NUSA)

I

225 .550

Monitoring, Recordkeeping and Reporting Requirements for Gross

Electrical

225 .555

Output and Useful Thermal Energy

Clean Air Set-Aside (CASA)

I

225 .560

Technology

225 .565

Energy Efficiency and Conservation, Renewable Energy, and Clean

Projects

Clean Air Set-Aside (CASA) Allowances

I

225

.570

225 .575

Clean Air Set-Aside (CASA) Applications

and

Rccord]zccping

Agency Action on Clean Air Set-Aside (CASA) Applications

225 .600

Purpose

225 .605

Applicability

225 .610

Notice of Intent

225 .615

Control Technology Requirements

and

Emissions Standards for Mercury

225 .620

Emissions Standards for NOx and

S02

225 .625

Control Technology Requirements

for NOx, S02, and PM Emissions

225 .630

Permanent Shut-Downs

225 .635

Requirements for CAIR S02, CAIR NOx,

and CAIR NOx Ozone Season

Allowances

225 .640

Clean Air Act Requirements

---

225 .

A Specified EGUs

for Purposes of Subpart

F (Midwest

Generation's

Coal-Fired Boilers as of

July 1, 2006)

AUTHORITY : Implementing

and

authorized by Section 27 of the Environmental

Protection Act [415 ILCS 5/271

.

SOURCE : Adopted in R06-25 at 31 Ill

. Reg . 129, effective December 21, 2006

;

amended

SUBPART

in

A :

R06-26

GENERAL

at

PROVISIONS31

Ill

. Reg . , effective

Section 225

.130

Definitions

The following definitions apply for the purposes of this Part

. Unless otherwise

defined in this Section or a different meaning for a term is clear from its

context, the terms used in this Part have the meanings specified in 35 Ill

. Adm .

Code 211

.

"Agency" means the Illinois Environmental Protection Agency

. [415 ILCS

5/3

.1051

"Averaging demonstration" means, with regard to Subpart B of this Part, a

demonstration of compliance that is based on the combined performance of EGUs at

two or more sources .

"Base Emission Rate" means, for a group of EGUs subject to emission standards

for NOx and S02 pursuant to Section 225

.233, the average emission rate of NOx or

S02 from the EGUs, in pounds per million Btu heat input, for calendar years 2003

through 2005 (or, for seasonal NOx, the 2003 through 2005 ozone seasons), as

determined from the data collected and quality assured by the USEPA, pursuant to

the 40 CFR 72 and 96 federal Acid Rain and NOx Budget Trading Programs, for the

emissions and heat input of that group of EGUs

.

"Board" means the Illinois Pollution Control Board

. [415 ILCS 5/3 .1301

"Boiler" means an enclosed fossil or other fuel-fired combustion device used to

produce heat and to transfer heat to recirculating water, steam, or other

medium

.

"Bottoming-cycle cogeneration unit" means a cogeneration unit in which the

energy input to the unit is first used to produce useful thermal energy and at

least some of the reject heat from the useful thermal energy application or

process is then used for electricity production

.

"CAIR authorized account representative" means, for the purpose of general

accounts, a responsible natural person who is authorized, in accordance with 40

CFR 96 j subparts BB, FF, BBB, FFF, BBBB, and FFFF to transfer and otherwise

dispose of CAIR NOx, S02, and NOx Ozone Season allowances, as applicable, held

in the CAIR NOx,

S02, and NOx

Ozone Season general account, and for the purpose

of a CAIR NOx

compliance account, a CAIR S02 Allowance System Tracking account,

or a CAIR NOx

Ozone Season compliance account, the CAIR designated

representative of the source

.

I

I

I

"CAIR designated representative" means

+ for a CAIR

NOx source, a CAIR SO2

source, and a CAIR NOx

Ozone Season source and each CAIR

NOx unit, CAIR S02 unit

and CAIR

NOx

Ozone Season unit at the source, the natural person who is

---

authorized by the owners and operators of the source and all such units at the

source, in accordance with 40 CFR 962.~_~

subparts BB, FF, BBB,

FFF, BBSB, and

FFFF

as applicable, to represent and legally bind each owner and operator in

matters pertaining to the CAIR NOx Annual Trading Program, CAIR S02 Trading

Program, and

the

CAIR NOx Ozone Season Trading Program, as applicable

. For any

unit that is subject to one or more of the following programs

: CAIR NOx Annual

Trading Program,

the CAIR S02 Trading Program,

the CAIR NOx Ozone Season Trading

Program, or the federal Acid Rain Program, the designated representative for the

unit must be the same natural person for all programs applicable to the unit

.

"CAIR Trading Programs" means the requirements of this Part, and those

provisions of the federal CAIR NOx Annual Season, CAIR S02, or CAIR NOx Ozone

Season Trading Programs set forth in 40 CFR 96, as incorporated by reference in

Section 225

.140 .

"Coal" means any solid fuel classified as anthracite, bituminous, subbituminous,

or lignite by the American Society for Testing and Materials (ASTM) Standard

Specification for Classification of Coals by Rank D388-77, 90, 91, 95, 98a, or

99 (Reapproved 2004)

.

"Coal-derived fuel" means any fuel (whether in a solid, liquid or gaseous state)

produced by the mechanical, thermal, or chemical processing of coal

.

"Coal-fired" means

:

For purposes of Subparts B, D, and Ey

combusting any amount of coal or coal-

derived fuel, alone or in combination with any amount of any other fuel, during

a specified year ;

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

.

"Cogeneration unit" means, for the purposes of Subparts C, D, and E, a

stationary, fossil fuel-fired boiler or a stationary, fossil fuel-fired

combustion turbine of which both of the following conditions are true

:

It uses equipment to produce electricity and useful thermal energy for

industrial, commercial, heating, or cooling purposes through the sequential use

of energy ; and

It produces either of the following during the 12-month period beginning on the

date the unit first produces electricity and during any subsequent calendar year

after that in which the unit first produces electricity

:

I

For a topping-cycle cogeneration unit, both of the following

:

Useful thermal energy not less than five percent of total energy output

; and

useful power that, when added to one-half of useful thermal energy produced, is

not less than 42

.5 percent of total energy input, if useful thermal energy

produced is 15 percent or more of total energy output, or not less than 45

percent of total energy input if useful thermal energy produced is less than 15

percent of total energy output ; or

---

For

a bottoming-cycle cogeneration unit, useful power not less than 45 percent

of total energy input .

"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

.

"Combustion turbine" means

:

An enclosed device comprising a compressor, a combustor, and a turbine and in

which the flue gas resulting from the combustion of fuel in the combustor passes

through the turbine, rotating the turbine

; and

If the enclosed device pursuant to

undcrdescrihed

;n the above paragraph of this

definition is combined cycle, any associated duct burner, heat recovery steam

generator and steam turbine .

"Commence commercial operation" means, for the purposes of Subpart B of this

Part, with regard to an EGU that serves a generator, to have begun to produce

steam, gas, or other heated medium used to generate electricity for sale or use,

including test generation

. Such date must remain the unit's date of

commencement of operation even if the EGU is subsequently modified,

reconstructed or repowered

. For the purposes of Subparts C, D and E, "commence

commercial operations is as defined in Section 225

.150 .

"Commence construction" means, for the purposes of Section 225

.460(f), 225 .470,

225 .560(f), and 225

.570, that the owner or owner's designee has obtained all

necessary preconstruction approvals (e

.g ., zoning) or permits and either has

:

Begun, or caused to begin, a continuous program of actual on-site construction

of the source, to be completed within a reasonable time

; or

Entered into binding agreements or contractual obligations, which cannot be

cancelled or modified without substantial loss to the owner or operator, to

undertake a program of actual construction of the source to be completed within

a reasonable time .

For purposes of this definition

:

"Construction" shall be determined as any physical change or change in the

method of operation, including but not limited to fabrication, erection,

installation, demolition, or modification of projects eligible for CASA

allowances, as set forth in Sections 225

.460 and 225 .560 .

"A reasonable time" shall be determined considering but not limited to the

following factors

: the nature and size of the project, the extent of design

engineering, the amount of off-site preparation, whether equipment can be

fabricated or can be purchased, when the project begins (considering both the

seasonal nature of the construction activity and the existence of other projects

competing for construction labor at the same time, the place of the

environmental permit in the sequence of corporate and overall governmental

approval), and the nature of the project sponsor

(e .g

., private, public,

regulated) .

"Commence operation;", for purposes of Subparts C, D and E, means

:

---

I

To have begun

any mechanical, chemical, or electronic

process, including, for

the purpose of

a unit, start-up of a unit's combustion

chamber, except as

provided in 40

CFR 96 .105, 96 .205, or 96 .305, as

incorporated by reference in

Section 225 .140 .

For a unit that undergoes a physical change (other than replacement of the unit

by a unit at the same source) after the date the unit commences operation as set

forth in the first paragraph of this definition, such date will remain the date

of commencement of operation of the unit, which will continue to be treated as

the same unit

.

For a unit that is replaced by a unit at the same source

(e .g ., repowered),

after the date the unit commences operation as set forth in the first paragraph

of this definition, such date will remain the replaced unit's date of

commencement of operation, and the replacement unit will be treated as a

separate unit with a separate date for commencement of operation as set forth in

this definition as appropriate .

"Common stack" means a single flue through which emissions from two or more

units are exhausted .

"Compliance account" means, for the purposes of Subparts D and E, a CAIR

NOx

Allowance Tracking System account, established by USEPA for a CAIR

NOx source or

CAIR NOx

Ozone Season source pursuant to 40 CFR 9-&

subparts FF and FFFF in

which any CAIR NOx allowance or CAIR

NOx Ozone Season allowance allocations for

the CAIR

NOx units or CAIR NOx

Ozone Season units at the source are initially

recorded and in which are held any CAIR NOx or CAIR

NOx Ozone Season allowances

available for use for a control period in order to meet the source's CAIR

NOx or

CAIR NOx

Ozone Season emissions limitations in accordance with Sections 225

.410

and 225

.510, and 40 CFR 96 .154 and 96

.354, as incorporated by reference in

Section 225 .140

. CAIR NOx allowances may not be used for compliance with the

CAIR NOx Ozone Season Trading p

egramPrQaram and CAIR

NOx Ozone Season

allowances may not be used for compliance with the CAIR

NOx

Annual Trading

per

.

"Control period" means

:

For the CAIR S02 and NOx Annual Trading

programaproarams in Subparts C and D,

the period beginning January 1 of a calendar year, except as provided in

Sections 225 .310(d)(3) and 225

.410(d)(3), and ending on December 31 of the same

year, inclusive

; or

For the CAIR NOx

Ozone Season Trading Program in Subpart E, the period beginning

May 1 of a calendar year, except as provided in Section 225

.510(d)(3), and

ending on September 30 of the same year, inclusive

.

"Designated representative" means, for the purposes of Subpart B of this Part,

the same as defined in 40 CFR 60

.4102 .

"Electric generating unit-4

or"

GU}" means a fossil fuel-fired stationary

boiler, combustion turbine or combined cycle system that serves a generator that

has a nameplate capacity greater than 25 MWe and produces electricity for sale

.

I

I

I

"Flue" means a conduit or duct through which gases or other matter is exhausted

to the atmosphere .

---

"Fossil

fuel" means natural gas, petroleum,

coal, or any form of solid, liquid,

or gaseous fuel derived from such material

.

"Fossil fuel-fired" means the combusting g

.any amount of fossil fuel, alone or

in combination with any other fuel in any calendar year

.

"Generator" means a device that produces electricity

.

"Gross electrical output" means the total electrical output from an EGU before

making any deductions for energy output used in any way related to the

production of energy

. For an EGU generating only electricity, the gross

electrical output is the output from the turbine/generator set

.

"Heat input" means, for the purposes of Subparts C, D, and E, a specified period

of time, the product (in mmBtu/hr) of the gross calorific value of the fuel (in

Btu/lb) divided by 1,000,000 Btu/mmBtu and multiplied by the fuel feed rate into

a combustion device (in lb of fuel/time), as measured, recorded and reported to

USEPA by the CAIR designated representative and determined by USEPA in

accordance with 40 CFR 96, subpart HH, HHH, or HHHH, if applicable, and

excluding the heat derived from preheated combustion air, recirculated flue

gases, or exhaust from other sources

.

"Higher heating value- "

or"HHV}" means the total heat liberated per mass of

fuel burned

(Btu-pe-r- J, ,

when fuel and dry air at standard conditions

undergo complete combustion and all resultant products are brought to their

standard states at standard conditions

.

"Input mercury" means the mass of mercury that is contained in the coal

combusted within an EGO .

"Integrated gasification combined

cycle-4

or" IGCC-)-" means a coal-fired

electric utility steam generating unit that burns a synthetic gas derived from

coal in a combined-cycle gas turbine

. No coal is directly burned in the unit

during operation .

"Nameplate capacity" means, starting from the initial installation of a

generator, the maximum electrical generating output (in MWe) that the generator

is capable of producing on a steady-state basis and during continuous operation

(when not restricted by seasonal or other deratings) as specified by the

manufacturer of the generator or, starting from the completion of any subsequent

physical change in the generator resulting in an increase in the maximum

electrical generating output (in MWe) that the generator is capable of producing

on a steady-state basis and during continuous operation (when not restricted by

seasonal or other deratings), such increased maximum amount as specified by the

person conducting the physical change .

"Oil-fired unit" means a unit combusting fuel oil for more than 15

.0 percent of

the annual heat input in a specified year and not qualifying as coal-fired

.

"Output-based emission standard" means, for the purposes of Subpart B of this

Part, a maximum allowable rate of emissions of mercury per unit of gross

electrical output from an EGU .

"Potential electrical output capacity" means 33 percent of a unit's maximum

design heat input, expressed in mmBtu/hr divided by 3

.413 mmEtu/MWh, and

multiplied by 8,760 hr/yr .

---

"Project sponsor"

means

a person or an entity, including but not limited to the

owner or operator of an EGU or a not-for-profit group, that provides the

majority of funding for an energy efficiency and conservation, renewable energy,

or clean technology project as listed in Sections 225

.460 and 225 .560, unless

another person or entity is designated by a written agreement as the project

sponsor for the purpose of applying for NOx allowances or NOx Ozone Season

allowances from the CASA

.

"Rated-energy efficiency" means the percentage of thermal energy input that is

recovered as useable energy in the form of gross electrical output, useful

thermal energy, or both that is used for heating, cooling, industrial processes,

or other beneficial uses as follows

:

For electric generators, rated

-

energy efficiency is calculated as one kilowatt

hour (3,413 Btu) of electricity divided by the unit's design heat rate using the

higher heating value of the fuel, and expressed as a percentage

.

For combined heat and power projects, rated-energy efficiency is calculated

using the following formula :

REE

_

((GO + UTE)/HI) ? 100

Where :

REE =

Rated-energy efficiency, expressed as percentage-GO

=

Gross

electrical output of the system expressed in Btu/hr

.UTE

=

Useful thermal

output from the system that is used for heating, cooling, industrial processes

or other beneficial uses, expressed in Btu/hr

.HI

=

Heat input, based

upon the higher heating value of fuel, in Btu/hr

.

"Repowered" means, for the purposes of an EGU, replacement of a coal-fired

boiler with one of the following coal-fired technologies at the same source as

the coal-fired boiler :

Atmospheric or pressurized fluidized bed combustion

;

Integrated gasification combined cycle ;

Magnetohydrodynamics

;

Direct and indirect coal-fired turbines

;

Integrated gasification fuel cells

; or

As determined by the USEPA in consultation with the United States Department of

Energy, a derivative of one or more of the technologies under this definition

and any other coal-fired technology capable of controlling multiple combustion

emissions simultaneously with improved boiler or generation efficiency and with

significantly greater waste reduction relative to the performance of technology

in widespread commercial use as of January 1, 2005

.

I

"Rolling 12-month basis" means, for the purposes of Subpart B of this Part, a

determination made on a monthly basis from the relevant data for a particular

calendar month and the preceding 11 calendar months (total of 12 months of

data), with two exceptions

. For determinations involving one EGU, calendar

months in which the EGU does not operate (zero EGU operating hours) must not be

included in the determination, and must be replaced by a preceding month or

months in which the EGU does operate, so that the determination is still based

---

on 12 months of data .

For determinations involving two

or more EGUs, calendar

months

in which none of the EGUs covered by the determination operates (zero EGU

operating hours) must not be included in the determination, and must be replaced

by preceding months in which at least one of the EGUs covered by the

determination does operate, so that the determination is still based on 12

months of data

.

"Total energy output" means, with respect to a cogeneration unit, the sum of

useful power and useful thermal energy produced by the cogeneration unit

.

"Useful thermal energy" means, for the purpose of a cogeneration unit, the

thermal energy that is made available to an industrial or commercial process,

excluding any heat contained in condensate return or makeup water

:

Used in a heating application (e .g.,

space heating or domestic hot water

heating)

; or

Used in a space cooling application (e .g.,

thermal energy used by an absorption

chiller) .

(Source

: Amended at 31 Ill . Reg .

Section 225

.140

Incorporations by Reference

The following materials are incorporated by reference

. These incorporations do

not include any later amendments or editions

.

a)

40 CFR 60, 60

.17, 60 .45a, 60 .49a(k)(1) and (p),

60 .50a(h), and 60

.4170

through 60 .4176 (2005) .

b)

40 CFR 75 (2005 2006) .

c)

40 CFR 78 (2006) .

d)

40 CFR 96, CAIR So2Trading Program,

cubpartsuhnarts

AAA (excluding 40 CFR

96 .204 and 96 .206), oubpart

BBB, oubpart

FFF, ^•E GG, and

aubpart HHH

(2006) .

e)

40 CFR 96, CAIR NOx Annual Trading Program,

nubpartsubnarts

AA (excluding

40 CFR 96

.104, 96 .105(b)(2), and 96

.106), Dubpart BB,

oubpart FF, old

G,

and oubpart

HH (2006) .

f)

40 CFR 96, CAIR NOx Ozone Season Trading Program,

subportS>>hnarts

AAAA

(excluding 40 CFR 96 .304, 96 .305(b)(2), and 96

.306),

aubpart BBBB, oubpart

FFFF,

sabgart GGGG, and

oubpart HHHH (2006) .

gc2) ASTM

. The following methods from the American Society for Testing

and Materials, 100 Barr Harbor Drive, P

.O

. Box C700, West Conshohocken PA 19428-

2959, (610) 832-9585

:

I

I

1)

ASTM D388-77 (approved February 25, 1977), D388-90 (approved March 30,

1990), D388-91a (approved April 15, 1991), D388-95 (approved January 15, 1995),

D388-98a (approved September 10, 1998), or D388-99 (approved September 10, 1999,

reapproved in 2004), Classification of Coals by Rank

.

2)

ASTM D3173-03, Standard Test Method for Moisture in the Analysis Sample of

Coal and Coke (Approved April 10, 2003)

.

,

effective )

---

3)

ASTM D3684-01, Standard Test Method for Total Mercury in Coal by the

Oxygen Bomb Combustion/Atomic Absorption Method (Approved October 10, 2001)

.

4)

ASTM D5865-04, Standard Test Method for Gross Calorific Value of Coal and

Coke (Approved April 1, 2004) .

5)

ASTM D6414-01, Standard Test Method for Total Mercury in Coal and Coal

Combustion Residues by Acid Extraction or Wet Oxidation/Cold Vapor Atomic

Absorption (Approved October 10, 2001)

.

6)

ASTM D6784-02, Standard Test Method for Elemental, Oxidized, Particle-

Bound and Total Mercury in Flue Gas Generated from Coal-Fired Stationary Sources

(Ontario Hydro Method) (Approved April 10, 2002)

.

h)

Federal Energy Management Program, M&V

Guidelines : Measurement and

Verification for Federal Energy Projects, US Department of Energy, Office of

Energy Efficiency and Renewable Energy, Version 2

.2, DOE/GO-102000-0960

(September 2000) .

(Source : Amended at 31 Ill . Reg .

, effective )

Section 225 .150

Commence Commercial Operation

Commence commercial operation means, for the purposes of Subparts C, D and E,

with regard to a unit serving a generator

:

a)

To have begun to produce steam, gas, or other heated medium used to

generate electricity for sale or use, including test generation, except as

provided in 40 CFR 96.105,

96 .205, or 96

.305, as incorporated by reference in

Section 225

.140 .

1)

For a unit that is a CAIR S02 unit, CAIR NOx unit, or a CAIR NOx Ozone

Season unit pursuant to 40 CFR 96

.104, 96 .204 or 96

.304, respectively, on the

date the unit commences commercial operation on the later of November 15, 1990

or the date the unit commences commercial operation as defined in subsection (a)

of this Section and that subsequently undergoes a physical change (other than

replacement of the unit by a unit at the same source), such date will remain the

unit's date of commencement of commercial operation, which will continue to be

treated as the same unit .

I

I

2)

For a unit that is a CAIR S02 unit, CAIR NOx unit, or a CAIR NOx Ozone

Season unit pursuant to 40 CFR 96 .104, 96 .204 or 96

.304, respectively, on the

later of November 15, 1990 or the date the unit commences commercial operation

as defined in subsection (a) of this Section and that is subsequently replaced

by a unit at the same source (e .g.,

repowered), such date will remain the

replaced unit's date of commencement of commercial operation, and the replaced

unit will be treated as a separate unit with a separate date for commencement of

commercial operation as defined in subsection (a) or (b) of this Section as

appropriate .

b)

Notwithstanding subsection (a) of this Section and except as provided in

40 CFR 96 .105, 96 .205, or 96

.305 for a unit that is not a CAIR S02 unit, CAIR

NOx unit, or a CAIR NOx Ozone Season unit pursuant to Section 225

.305, 225

.405,

or 225 .40;,2?.5,.505

.

respectively, on the later of November 15, 1990 or the date

the unit commences commercial operation as defined in subsection (a) of this

Section, the unit's date for commencement of commercial operation will be the

---

I

date on which the unit becomes an affected unit pursuant to Section 225

.305,

225 .405, or 225 .105,

respectively .

1)

For a unit with a date for commencement of commercial operation as defined

in subsection (b) of this Section and that subsequently undergoes a physical

change (other than replacement of the unit by a unit at the same source), such

date will remain the unit's date of commencement of commercial operation, which

shall continue to be treated as the same unit

.

2)

For a unit with a date for commencement of commercial operation as defined

in subsection (b) of this Section and that is subsequently replaced by a unit at

the same source (e .g .,

repowered), such date will remain the replaced unit's

date of commencement of commercial operation, and the replaced unit will be

treated as a separate unit with a separate date for commencement of commercial

operation as defined in subsection (a) or (b) of this Section as appropriate

.

(Source : Added at 31 Ill . Reg . ,

effective -)

SUBPART C : CLEAN AIR ACT INTERSTATE

RULE (CAIR) S02 TRADING PROGRAM

Section 225 .300

Purpose

The purpose of this Subpart C is to control the emissions of sulfur dioxide

(S02) from EGUs annually by implementing the CAIR S02 Trading Program pursuant

to 40 CFR 96, as incorporated by reference in Section 225

.140 .

(Source

: Added at 31 Ill . Reg . ,

effective

Section 225 .305

Applicability

a)

Except as provided in subsections (b)

(1), (b)(3), and (b) (4) of this

Section :

1)

The following units are CAIR S02 units, and any source that includes one

or more such units is a CAIR S02 source subject to the requirements of this

Subpart C

: any stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-

fired combustion turbine serving at any time, since the later of November 15,

1990 or the start-up.f

the unit's combustion chamber, a generator with

nameplate capacity of more than 25 MWe producing electricity for sale .

2)

If a stationary boiler or stationary combustion turbine that, pursuant to

subsection (a) (1) of this Section, is not a CAIR S02 unit begins to combust

fossil fuel or to serve a generator with nameplate capacity of more than 25 Mwe

producing electricity for sale, the unit will become a CAIR S02 unit as provided

in subsection (a) (1) of this Section on the first date on which it both combusts

fossil fuel and serves such generator .

b)

The units that meet the requirements set forth in subsections

(b)(1),

(b) (3),

and (b) (4) of this Section will not be CAIR S02 units and units that

meet the requirements of subsections (b) (2) and (b) (5) of this Section are CAIR

S02 units :

I

I

I

1)

Any unit that is a CAIR S02 unit pursuant to subsection (a) (1) or (a) (2)

of this Section and :

---

A)

Qualifies as a cogeneration unit during the 12-month period starting on

the date the unit first produces electricity and

eentinuingront-innes to qualify

as a cogeneration unit ; and

B)

Does not serve at any time, since the later of November 15, 1990 or the

start-up of the unit's combustion chamber, a generator with nameplate capacity

of more than 25 MWe supplying any calendar year more than one-third of the of

the unit's potential electric output capacity or 219,000 MWh, whichever is

greater, to any utility power distribution for sale .

2)

If a unit qualifies as a cogeneration unit during the 12-month period

starting on the date the unit first produces electricity and meets the

requirements of subsection (b) (1) of this section for at least one calendar

year, but subsequently no longer meets all such requirements, the unit shall

become a CAIR S02 unit starting on the earlier of January 1 after the first

calendar year during which the unit no longer qualifies as a cogeneration unit

or January 1 after the first calendar year during which the unit no longer meets

the requirements of subsection (b) (1) (B) of this Section .

3)

Any unit that is a CAIR S02 unit pursuant to subsection (a) (1) or (a) (2)

of this Section commencing operation before January 1, 1985 and

:

A)

Qualifies as a solid waste incineration unit ; and

B)

With an average annual fuel consumption of non-fossil fuel for 1985-1987

exceeding 80 percent (on a Btu basis) and an average annual fuel consumption of

non-fossil fuel for any three consecutive calendar years after 1990 exceeding 80

percent (on a Btu basis) .

4)

Any unit that is a CAIR S02 unit under subsection (a) (1) or (a) (2) of this

Section commencing operation on or after January 1, 1985-. and,

A)

Qualifies as a solid waste incineration unit ; and

B)

With an average annual fuel consumption of non-fossil fuel the first three

years of operation exceeding 80 percent (on a Btu basis) and an average annual

fuel consumption of non-fossil fuel for any three consecutive calendar years

after 1990 exceeding 80 percent (on a Btu basis) .

5)

If a unit qualifies as a solid waste incineration unit and meets the

requirements of subsection (b) (3) or (b) (4) of this Section for at least three

consecutive years, but subsequently no longer meets all such requirements, the

unit shall become a CAIR S02 unit starting on the earlier of January 1 after the

first three consecutive calendar years after 1990 for which the unit has an

average annual fuel consumption of furl of 20 percent or more .

(Source : Added at 31 Ill . Reg . , effective -)

Section 225 .310

Compliance Requirements

I

I

I

I

a)

The owner or operator of a CAIR S02 unit must comply with the requirements

of the CAIR S02 Trading Program for Illinois as set forth in this Subpart C and

40 CFR 96, subpart AAA (CAIR S02 Trading Program General Provisions, excluding

40 CFR

96.204,96

.2044

and 96 .206)

; 40 CFR 96, subpart BBB (CAIR Designated

Representative for CAIR S02 Sources) ; 40 CFR 96, subpart FFF (CAIR S02 Allowance

Tracking System) ; 40 CFR 96, subpart GGG (CAIR S02 Allowance Transfers) ; and 40

---

CFR 96, subpart HHH (Monitoring and Reporting) ; as

incorporated by reference in

Section 225

.140 .

b)

Permit requirements

:

1)

The owner or operator of each source with one or more CAIR S02 units at

the source must apply for a permit issued by the Agency with federally

enforceable conditions covering the CAIR S02 Trading Program ("LAIR permit")

that complies with the requirements of Section 225 .320 (Permit Requirements) .

2)

The owner or operator of each CAIR S02 source and each CAIR S02 unit at

the source must operate the CAIR S02 unit in compliance with its CAIR permit .

c)

Monitoring requirements :

1)

The owner or operator of each CAIR S02 source and each CAIR S02 unit at

the source must comply with the monitoring requirements of 40 CFR 96, subpart

HHH

. The CAIR designated representative of each CAIR S02 source and each CAIR

S02 unit at the CAIR S02 source must comply with those sections of the

monitoring, reporting and recordkeeping requirements of 40 CFR 96, subpart HHH,

applicable to the CAIR designated representative

.

2)

The compliance of each CAIR S02 source with the emissions limitation

pursuant to subsection (d) of this Section will be determined by the emissions

measurements recorded and reported in accordance with 40 CFR 96, subpart HHH and

40 CFR 75 .

d)

Emission requirements

:

1)

By the allowance transfer deadline, March 1, 2011, and by March 1 of each

subsequent year, the owner or operator of each CAIR S02 source and each CAIR S02

unit at the source must hold a tonnage equivalent in CAIR S02 allowances

available for compliance deductions pursuant to 40 CFR 96

.254(a) and (b) in the

CAIR S02 source's CAIR S02 Allowance System Tracking account

. The allowance

transfer deadline means by midnight of March 1 (if it is a business day) or

midnight of the first business day thereafter

. The number of allowances held

may not be less than the total tons of S02 emissions for the control period from

all CAIR S02 units at the CAIR S02 source, as determined in accordance with 40

CFR 96, subpart HHH

.

2)

Each ton of S02 emitted by a CAIR S02 unit in excess of the tonnage

authorization of CAIR S02 allowances held by the owner or operator for each CAIR

S02 unit in its CAIR S02 Allowance System Tracking account for each day of the

applicable control period will constitute a separate violation of this Subpart

C, the Clean Air Act, and the Act .

3)

Each CAIR S02 unit will be subject to the monitoring requirements of

subsection (c) (1) of this Section starting on the later of January 1,

2009,2009

or the deadline for meeting the unit's monitoring certification requirements

pursuant to 40 CFR 96.270(b)(1) or (2) and for each control period thereafter

.

4)

CAIR S02 allowances must be held in, deducted from, or transferred into or

among allowance accounts in accordance with this Subpart and 40 CFR 96, subparts

FFF and GGG .

5)

In order to comply with the requirements of subsection (d) (1) of this

Section, a CAIR S02 allowance may not be deducted for compliance according to

---

subsection

(d) (1) of this Section; for a control period in a calendar year

before the year for which the allowance is allocated

.

6)

A CAIR S02

allowance is a limited authorization to emit

S02 in accordance

with the CAIR S02

Trading Program . No provision of the CAIR S02

Trading

Program, the CAIR permit application, the CAIR permit, or a retired unit

exemption pursuant to 40 CFR 96 .205,

and no provision of law, will be construed

to limit the authority of the United States or the State to terminate or limit

this authorization

.

7)

A CAIR S02

allowance allocated by USEPA pursuant to the CAIR

S02 Trading

Program does not constitute a property right

.

8)

Upon recordation by USEPA pursuant to 40 CFR 96Qk. subpart FFF or

subpart

GGG, every allocation, transfer, or deduction of a CAIR

S02

allowance to or from

a CAIR S02

source's compliance account, as defined by 40 CFR 96 .202,

is deemed

to amend automatically, and become a part of, any CAIR permit of the CAIR

S02

source

. This automatic amendment of the CAIR permit will be deemed an operation

of law and will not require any further review

.

e)

Recordkeeping and reporting requirements

:

1)

Unless otherwise provided, the owner or operator of the CAIR

S02 source

and each CAIR S02

unit at the source must keep on site at the source each of the

documents listed in subsections (e) (1) (A) through (e) (1) (D) of this Section for

a period of five (5)

years from the date the document is created

. This period

may be extended for cause, at any time prior to the end of five years, in

writing by the Agency or USEPA .

A)

The certificate of representation for the CAIR designated representative

for the source and each CAIR S02

unit at the source, all documents that

demonstrate the truth of the statements in the certificate of representation,

provided that the certificate and documents must be retained on site at the

source beyond such five-year period until the documents are superseded because

of the submission of a new certificate of representation,°

pursuant to 40 CFR

96 .213,

changing the CAIR designated representative

.

B)

All emissions monitoring information, in accordance with 40 CFR

96,

subpart HHH .

C)

Copies of all reports, compliance certifications, and other submissions

and all records made or required pursuant to the CAIR

S02

Trading Program or

documents necessary to demonstrate compliance with the requirements of the CAIR

S02

Trading Program or with the requirements of this subpart C

.

D)

Copies of all documents used to complete a CAIR permit application and any

other submission or documents used to demonstrate compliance pursuant to the

CAIR S02 Trading Program

.

2)

The CAIR designated representative of a CAIR

S02

source and each CAIR S02

unit at the source must submit to the Agency and USEPA the reports and

compliance certifications required pursuant to the CAIR

S02

Trading Program,

including those pursuant to 40 CFR

96, subpart HHH .

I

I

f)

Liability :

---

1)

No

revision of a permit for a CAIR S02 unit may excuse any violation of

the requirements of this Subpart C or the requirements of the CAIR S02 Trading

Program .

2)

Each CAIR S02 source and each CAIR S02 unit must meet the requirements of

the CAIR S02 Trading Program

.

3)

Any provision of the CAIR S02 Trading Program that applies to A--CAIR

S02

source (including any provision applicable to the CAIR designated representative

of a CAIR S02 source) will also apply to the owner and operator of the CAIR S02

source and to the owner and operator of each CAIR S02 unit at the source

.

4)

Any provision of the CAIR S02 Trading Program that applies to a CAIR S02

unit (including any provision applicable to the CAIR designated representative

of a CAIR S02 unit) will also apply to the owner and operator of the CAIR S02

unit .

5)

The CAIR designated representative of a CAIR S02 unit that has excess S02

emissions in any control period must surrender the allowances as required for

deduction pursuant to 40 CFR 96

.254(d)(1) .

6)

The owner or operator of a CAIR 902 unit that has excess S02 emissions in

any control period must pay any fine, penalty, or assessment or comply with any

other remedy imposed pursuant to the Act and 40 CFR 96

.254(d)(2) .

g)

Effect on other authorities-j No provision of the CAIR S02 Trading

Program, a CAIR permit application, a CAIR permit, or a retired unit exemption

pursuant to 40 CFR 96

.205 will be construed as exempting or excluding the owner

and operator and, to the extent applicable, the CAIR designated representative

of a CAIR S02 source or a CAIR S02 unit

; from compliance with any other

regulation promulgated pursuant to the CAA, the Act, any State regulation or

permit, or a federally enforceable permit

.

(Source : Added at 31 Ill

. Reg .

, effective -)

Section 225 .315

Appeal Procedures

The appeal procedures for decisions of USEPA pursuant to the CAIR S02 Trading

Program are set forth in 40 CFR 78, as incorporated by reference in Section

225 .140 .

(Source

: Added at 31 Ill . Reg .

effective -)

Section 225 .320

Permit Requirements

a)

Permit requirements

:

1)

The owner or operator of each source with a CAIR S02 unit is required to

submit :

I

I

I

A)

A complete permit application addressing all applicable CAIR S02 Trading

Program requirements for a permit meeting the requirements of this

Section-

225 .320, .

applicable to each CAIR S02 unit at the source

. Each CAIR permit must

contain elements required for a complete CAIR permit application pursuant to

subsection (b) (2) of this Section .

---

B)

Any supplemental information that the Agency determines is necessary in

order to review a CAIR permit application and issue a CAIR permit .

2) Each CAIR permit will be issued pursuant to Section 39 or 39 .5 of the Act,

must contain federally enforceable conditions addressing all applicable CAIR S02

Trading Program and requirements, and will be a complete and segregable portion

of the source's entire permit pursuant to subsection (a) (1) of this Section .

3)

No CAIR permit may be issued and no CAIR S02 Allowance System Tracking

account may be established for the CAIR S02 source, until the Agency and USEPA

have received a complete certificate of representation for a CAIR designated

representative or alternate designated representative pursuant to 40 CFR 96,

subpart BBB, for a source and the CAIR S02 unit at the source .

4)

For all CAIR S02 units that commenced operation before July 1, 2008, the

owner or operator of the unit must submit a CAIR permit application meeting the

requirements of this Section 22S .320 on or before July 1, 2008 .

5)

For CAIR S02 units that commence operation on or after July 1, 2008, and

that are and are not subject to Section 39.5 of the Act, the owner or operator

of such units must submit applications for construction 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 the applications must specify that they are

applying for CAIR permits ; and must address the CAIR permit application

requirements of this Section 22 ; .320 .,

b) Permit applications :

1)

Duty to apply:+ The owner or operator of any source with one or more CAIR

S02 units must submit to the Agency a CAIR permit application for the source

covering each CAIR S02 unit pursuant to subsection (b) (2) 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 S02 units must reapply for a

CAIR permit for the source as required by this Subpart, 35 Ill . Adm . Code 201,

and, as applicable, Sections 39 and 39 .5 of the Act .

2)

Information requirements for CAIR permit applications-

.

.L A complete CAIR

permit application must include the following elements concerning the source for

which the application is submitted :

A) Identification of the source, including plant name

. The ORIS (Office of

Regulatory Information Systems) or facility code assigned to the source by the

Energy Information Administration must also be included, if applicable ;

B)

Identification of each CAIR S02 unit at the source ; and

C)

The compliance requirements applicable to each CAIR S02 unit as set forth

in Section 225 .310 .

I

I

3)

An application for a CAIR permit will be treated as a modification of the

CAIR S02 source's existing federally enforceable permit, if such a permit has

been issued for that CAIR S02 source, and will be subject to the same procedural

requirements . When the Agency issues a CAIR permit pursuant to the requirements

of this Section 225 .320

„

it will be incorporated into and become part of that

CAIR S02 source's existing federally enforceable permit .

---

I

c)

Permit content :+ Each CAIR permit is deemed to incorporate automatically

the definitions and terms purouant toSnerjf

;

ed yiy Section 225 .120 and, upon

recordation of USEPA under 40 CFR 96, Sbpar-t-spuhnarfs FFF and GGG. as

incorporated by reference in Section 225 .140, every allocation, transfer, or

deduction of a CAIR S02 allowance to or from the compliance account of the CAIR

S02 source covered by the permit .

(Source : Added at 31 Ill

. Reg . , effective -)

Section 225 .325

Trading Program

a)

The CAIR S02 Trading Program is administered by USEPA . CAIR S02

allowances are issued as described by the definition for allocate in 40 CFR

96

.220, as incorporated by reference in Section 225 .140 . The amount of CAIR S02

allowances to be credited to a CAIR S02 source's CAIR S02 Allowance Tracking

System account for a CAIR S02 unit will be determined in accordance with 40 CFR

96

.253, as incorporated by reference in Section 225 .140 .

b)

A CAIR S02 allowance is a limited authorization to emit S02 during the

calendar year for which the allowance is allocated or any calendar year

thereafter pursuant to the CAIR S02 Trading Program as follows :

1)

For one CAIR S02 allowance allocated for a control period in a year before

2010, one ton of S02, except as provided for in the compliance deductions

pursuant to 40 CFR 96 .254(b) ;

2)

For one CAIR S02 allowance allocated for a control period in 2010 through

2014, 0 .5 ton of S02, except as provided for in the compliance deductions

pursuant to 40 CFR 96 .254(b) ; and

3)

For one CAIR S02 allowance allocated for a control period in 2015 or

later, 0 .35 ton of S02, except as provided for in the compliance deductions

pursuant to 40 CFR 96 .254(b) .

(Source : Added at 31 Ill . Reg . ,

effective -)

SUBPART D : CAIR NOx ANNUAL TRADING PROGRAM

Section 225 .400

Purpose

The purpose of this Subpart D is to control the annual emissions of nitrogen

oxides (NOx) from EGUs by determining allocations and implementing the CAIR NOx

Annual Trading Program .

(Source : Added at 31 Ill . Reg . ,

effective -)

Section 225 .405

Applicability

a)

Except as provided in subsections (b) (1), (b) (3), and (b) (4) of this

Section

:

I

I

I

1)

The following units are CAIR NOx units, and any source that includes one

or more such units is a CAIR NOx source subject to the requirements of this

Subpart D : any stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-

fired combustion turbine serving at any time, since the later of November 15,

1990 or the start-ups the unit's combustion chamber, a generator with

nameplate capacity of more than 25 MWe producing electricity for sale .

---

2)

If a

stationary boiler or stationary combustion turbine that, pursuant to

subsection (a) (1) of this Section, is not a CAIR NOx unit begins to combust

fossil fuel or to serve a generator with nameplate capacity of more than 25 MWe

producing electricity for sale, the unit will become a CAIR NOx unit as provided

in subsection (a) (1) of this Section on the first date on which it both combusts

fossil fuel and serves such generator .

b)

The units that meet the requirements set forth in subsections

(b)(1),

(b) (3), and (b) (4) of this section will not be CAIR NOx units and units that

meet the requirements of subsections (b) (2) and (b) (5) of this Section are CAIR

NOx units :

1)

Any unit that is a CAIR NOx unit pursuant to subsection (a) (1) or (a) (2)

of this Section and :

A)

Qualifies as a cogeneration unit during the 12-month period starting on

the date the unit first produces electricity and continuingront.irues to qualify

as a cogeneration unit ; and

B)

Does not serve at any time, since the later of November 15, 1990 or the

start-up of the unit's combustion chamber, a generator with nameplate capacity

of more than 25 MWe supplying any calendar year more than one-third of the

of

the unit's potential electric output capacity or 219,000 MWh, whichever is

greater, to any utility power distribution for sale

.

2)

If a unit qualifies as a cogeneration unit during the 12-month period

starting on the date the unit first produces electricity and meets the

requirements of subsection (b) (1) of this Section for at least one calendar

year, but subsequently no longer meets all such requirements, the unit shall

become a CAIR NOx unit starting on the earlier of January 1 after the first

calendar year during which the unit no longer qualifies as a cogeneration unit

or January 1 after the first calendar year during which the unit no longer meets

the requirements of subsection (b) (1) (B) of this Section

.

3)

Any unit that is a CAIR NOx unit pursuant to subsection (a) (1) or (a) (2)

of this Section commencing operation before January 1, 1985 and :

A)

Qualifies as a solid waste incineration unit ; and

B)

With an average annual fuel consumption of non-fossil fuel for 1985-1987

exceeding 80 percent (on a Stu basis) and an average annual fuel consumption of

non-fossil fuel for any three consecutive calendar years after 1990 exceeding 80

percent (on a Btu basis) .

4)

Any unit that is a CAIR NOx unit under subsection (a) (1) or (a) (2) of this

Section commencing operation on or after January 1, 1985-. and.

A)

Qualifies as a solid waste incineration unit ; and

B)

With an average annual fuel consumption of non-fossil fuel the first three

years of operation exceeding 80 percent (on a Btu basis) and an average annual

fuel consumption of non-fossil fuel for any three consecutive calendar years

after 1990 exceeding 80 percent (on a Btu basis) .

5)

If a unit qualifies as a solid waste incineration unit and meets the

requirements of subsection (b) (3) or (b) (4) of this Section for at least three

---

I

consecutive years,

but subsequently no longer meets all such requirements, the

unit shall become a CAIR NOx unit starting on the earlier of January 1 after the

first three consecutive calendar years after 1990 for which the unit has an

average annual fuel consumption of fuel of 20 percent or more .

(Source : Added at 31 Ill . Reg . , effective -)

Section 225 .410

Compliance Requirements

a)

The owner or operator of a CAIR NOx

unit must comply with the requirements

of the CAIR NOx

Annual Trading Program for Illinois as set forth in this Subpart

D and 40 CFR 96, subpart AA (NOx Annual Trading Program General Provisions,

excluding 40 CFR 96 .104, 96 .105(b)(2), and 96.106) ; 40 CFR 96, subpart BB (CAIR

Designated Representative for CAIR NOx

Sources) ; 40 CFR 96, subpart FF (CAIR NOx

Allowance Tracking System) ; 40 CFR 96, subpart GG (CAIR NOx

Allowance

Transfers) ; and 40 CFR 96, subpart HH (Monitoring and Reporting)

; as

incorporated by reference in section 225

.140 .

b)

Permit requirements

:

1)

The owner or operator of each source with one or more CAIR NOx units at

the source must apply for a permit issued by the Agency with federally

enforceable conditions covering the CAIR NOx Annual Trading Program ("CAIR

permit") that complies with the requirements of Section 225 .420 (Permit

Requirements)

.

2)

The owner or operator of each CAIR NOx source and each CAIR NOx unit at

the source must operate the CAIR NOx

unit in compliance with its CAIR permit .

c)

Monitoring requirements :

1)

The owner or operator of each CAIR NOx source and each CAIR NOx unit at

the source must comply with the monitoring requirements of 40 CFR 96, subpart HH

and Section 225

.450 . The CAIR designated representative of each CAIR NOx source

and each CAIR

NOx unit at the CAIR NOx source must comply with those sections of

the monitoring, reporting and recordkeeping requirements of 40 CFR 96, subpart

HH, applicable to a CAIR designated representative .

2) The compliance of each CAIR NOx source with the NOx emissions limitation

pursuant to subsection (d) of this Section will be determined by the emissions

measurements recorded and reported in accordance with 40 CFR 96, subpart HH .

d)

Emission requirements :

1)

By the allowance transfer deadline, March 1, 2010, and by March 1 of each

subsequent year,

the

allowance

tranafcr deadline, the owner or operator of each

CAIR NOx

source and each CAIR NOx unit at the source must hold CAIR NOx

allowances available for compliance deductions pursuant to 40 CFR 96

.154(a) in

the CAIR NOx source's CAIR NOx compliance account . The allowance transfer

deadline means by midnight of March 1 (if it is a business day) or midnight of

the first business day thereafter . The number of allowances held may not be

less than the tons of

NOx

emissions for the control period from all CAIR NOx

units at the source, as determined in accordance with 40 CFR 96, subpart HH

.

I

2)

Each ton of NOx emitted in excess of the number of CAIR NOx allowances

held by the owner or operator for each CAIR NOx unit in its CAIR NOx compliance

---

account

for each day of the applicable control period will constitute a separate

violation of this Subpart D, the Act, and the CAA .

3)

Each CAIR NOx unit will be subject to the monitoring requirements of

subsection (c) (1) of this Section starting on the later of January 1, 2009,2009

or the deadline for meeting the unit's monitoring certification requirements

pursuant to 40 CFR 96

.170(b)(1) or (b) (2) and for each control period

thereafter .

4) CAIR NOx allowances must be held in, deducted from, or transferred among

allowance accounts in accordance with this Subpart and 40 CFR 96, subparts FF

and GG .

5)

In order to comply with the requirements of subsection (d) (1) of this

Section, a CAIR NOx

allowance may not be deducted for compliance according to

subsection (d) (1) of this Section

; for a control period in a year before the

calendar year for which the allowance is allocated .

6)

A CAIR NOx allowance allocated by the Agency or USEPA pursuant to the CAIR

NOx Annual Trading Program is a limited authorization to emit one ton of

NOx

in

accordance with the CAIR NOx Trading Program . No provision of the CAIR NOx

Trading Program, the CAIR NOx permit application, the CAIR permit, or a retired

unit exemption pursuant to 40 CFR 96 .105, and no provision of law, will be

construed to limit the authority of the United States or the State to terminate

or limit this authorization

.

7)

A CAIR NOx allowance allocated by the Agency or USEPA pursuant to the CAIR

NOx Annual Trading Program does not constitute a property right .

8)

Upon recordation by USEPA pursuant to 40 CFR 96, subpart FF or 10 CM-9C,

oubpart GG, every allocation, transfer, or deduction of a CAIR NOx allowance to

or from a CAIR NOx source compliance account is deemed to amend automatically,

and become a part of, any CAIR NOx permit of the CAIR NOx source . This

automatic amendment of the CAIR permit will be deemed an operation of law and

will not require any further review .

e)

Recordkeeping and reporting requirements :

1)

Unless otherwise provided, the owner or operator of the CAIR

NOx

source

and each CAIR NOx unit at the source must keep on site at the source each of the

documents listed in subsections (e) (1) (A) through (e) (1) (E) of this Section for

a period of five years from the date the document is created . This period may

be extended for cause, at any time prior to the end of five years, in writing by

the Agency or USEPA .

A)

The certificate of representation for the CAIR designated representative

for the source and each CAIR NOx unit at the source, all documents that

demonstrate the truth of the statements in the certificate of representation,

provided that the certificate and documents must be retained on site at the

source beyond such five-year period until the documents are superseded because

of the submission of a new certificate of representation pursuant to 40 CFR

96 .113, changing the CAIR designated representative .

I

I

B)

All emissions monitoring information, in accordance with 40 CFR 96,

subpart HH .

---

C)

Copies of

all reports,

compliance certifications,

and other submissions

and all records made

or required pursuant to the CAIR

NOx

Annual Trading Program

or documents necessary to demonstrate compliance with the requirements of the

CAIR

NOx

Annual Trading Program or with the requirements of this Subpart D

.

D)

Copies of all documents used to complete a CAIR

NOx

permit application and

any other submission or documents used to demonstrate compliance pursuant to the

CAIR NOx

Annual Trading Program

.

E)

Copies of all records and logs for gross electrical output and useful

thermal energy required by Section 225

.450 .

2)

The CAIR designated representative of a CAIR

NOx

source and each CAIR NOx

unit at the source must submit to the Agency and USEPA the reports and

compliance certifications required pursuant to the CAIR

NOx

Annual Trading

Program, including those pursuant to 40 CFR 96, subpart HH

.

f)

Liability :

1) No

revision of a permit for a CAIR

NOx

unit may excuse any violation of

the requirements of this Subpart D or the requirements of the CAIR

NOx

Annual

Trading Program

.

2)

Each CAIR NOx

source and each CAIR NOx

unit must meet the requirements of

the CAIR

NOx Annual Trading Program

.

3)

Any provision of the CAIR

NOx

Annual Trading Program that applies to a

CAIR NOx

source (including any provision applicable to the CAIR designated

representative of a CAIR

NOx

source) will also apply to the owner and operator

of the CAIR NOx

source and to the owner and operator of each CAIR

NOx unit at

the source

.

4)

Any provision of the CAIR

NOx

Annual Trading Program that applies to a

CAIR NOx

unit (including any provision applicable to the CAIR designated

representative of a CAIR

NOx

unit) will also apply to the owner and operator of

the CAIR

NOx unit .

5)

The CAIR designated representative of a CAIR

NOx unit that has excess

emissions in any control period must surrender the allowances as required for

deduction pursuant to 40 CFR 96

.154(d)(1) .

6)

The owner or operator of a CAIR

NOx

unit that has excess NOx

emissions in

any control period must pay any fine, penalty, or assessment or comply with any

other remedy imposed pursuant to the Act and 40 CFR 96

.154(d)(2) .

g)

Effect on other authorities-

. .L

No provision of the CAIR

NOx

Annual Trading

Program, a CAIR permit application, a CAIR permit, or a retired unit exemption

pursuant to 40 CFR 96

.105 will be construed as exempting or excluding the owner

and operator and, to the extent applicable, the CAIR designated representative

of a CAIR

NOx source or a CAIR

NOx unit

; from compliance with any other

regulation promulgated pursuant to the CAA, the Act, any State regulation or

permit, or a federally enforceable permit

.

I

(Source : Added at 31 Ill

. Reg .

, effective -)

Section 225 .415

Appeal Procedures

---

I

I

The appeal procedures for decisions of USEPA pursuant to the CAIR NOx Annual

Trading Program are set forth in 40 CFR 78, as incorporated by reference in

Section 225 .140 .

(Source : Added at 31 Ill . Reg . , effective

-)

Section 225 .420

Permit Requirements

a)

Permit requirements :

1)

The owner or operator of each source with a CAIR NOx unit is required to

submit :

A)

A complete permit application addressing all applicable CAIR NOx Annual

Trading Program requirements for a permit meeting the requirements of this

Section

225 .420, + applicable to each CAIR NOx unit at the source . Each CAIR

permit must contain elements required for a complete CAIR permit application

pursuant to subsection (b) (2) of this Section

.

B)

Any supplemental information that the Agency determines necessary in order

to review a CAIR permit application and issue any CAIR permit .

2)

Each CAIR permit will be issued pursuant to

39 and 39

.5 of

the Act, must contain federally enforceable conditions addressing all applicable

CAIR NOx Annual Trading Program requirements, and muotwil be a complete and

segregable portion of the source's entire permit pursuant to subsection (a) (1)

of this Section .

3)

No CAIR permit may be issued, and no CAIR NOx compliance account may be

established for a CAIR NOx source, until the Agency and USEPA have received a

complete certificate of representation for a CAIR designated representative

pursuant to 40 CFR 96, subpart BE, for the CAIR NOx source and the CAIR NOx

unit

at the source .

4)

For all CAIR NOx units that commenced operation before July 1, 2007, the

owner or operator of the unit must submit a CAIR permit application meeting the

requirements of this Section 225 .120 on or before July 1, 2007 .

5)

For all CAIR

NOx

units that commence operation on or after July 1, 2007,

the owner or operator of these units must submit applications for construction

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 the applications must

specify that they are applying for CAIR permits ; and must address the CAIR

permit application requirements of this Section 225 .420 .,

b)

Permit applications :

I

I

I

1)

Duty to apply:+ The owner or operator of any source with one or more CAIR

NOx units must submit to the Agency a CAIR permit application for the source

covering each CAIR NOx unit pursuant to subsection (b) (2) 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 NOx units must reapply for a

CAIR permit for the source as required by this Subpart, 35 111 . Adm . Code 201,

and, as applicable, Sections 39 and 39 .5 of the Act

.

---

2)

Information

requirements for

CAIR permit applications . L.A

complete CAIR

permit application must include the following elements concerning the source for

which the application is submitted

:

A)

Identification of the source, including plant name

. The ORIS (Office of

Regulatory Information Systems) or facility code assigned to the source by the

Energy Information Administration must also be included, if applicable

;

B)

Identification of each CAIR NOx unit at the source

; and

C)

The compliance requirements applicable to each CAIR NOx unit as set forth

in Section 225 .410 .

3)

An application for a CAIR permit will be treated as a modification of the

CAIR NOx source's existing federally enforceable permit, if such a permit has

been issued for that source, and will be subject to the same procedural

requirements

. When the Agency issues a CAIR permit pursuant to the requirements

of this Section

225 .120,+

it will be incorporated into and become part of that

source's existing federally enforceable permit

.

c)

Permit content-.

.L Each CAIR permit is deemed to incorporate automatically

the definitions and terms

pursuant torner

;fied

;n

Section 225

.120 and, upon

recordation of USEPA under 40 CFR 96, Cubga

t-aguhnarfs FF and

GG. as

incorporated by reference in Section 225

.140, every allocation, transfer, or

deduction of a CAIR NOx allowance to or from the compliance account of the CAIR

NOx source covered by the permit .

(Source

: Added at 31 Ill

. Reg .

, effective -)

Section 225

.425

Annual Trading Budget

The CAIR NOx Annual Trading budget available for allowance allocations for each

control period will be determined as follows

:

a)

The total base CAIR NOx Annual Trading budget is 76,230 tons per control

period for the years 2009 through 2014, subject to a reduction for two set-

asides, the New Unit Set-Aside (NUSA) and the Clean Air Set-Aside (CASA)

. Five

percent of the budget will be allocated to the NUSA and 25 percent will be

allocated to the CASA, resulting in a CAIR NOx Annual Trading budget of 53,361

tons available for allocation per control period pursuant to Section 225

.440 .

The requirements of the NUSA are set forth in Section 225

.445, and the

requirements of the CASA are set forth in Sections 225

.455 through 225 .470 .

b)

The total base CAIR NOx Annual Trading budget is 63,525 tons per control

period for the year 2015 and thereafter, subject to a reduction for two set-

asides, the NUSA and the CASA

. Five percent of the budget will be allocated to

the NUSA and 25 percent will be allocated to the CASA, resulting in a CAIR Wax

Annual Trading budget of 44,468 tons available for allocation per control period

pursuant to Section 225 .440 .

c)

If USEPA adjusts the total base CAIR NOx Annual Trading budget for any

reason, the Agency will adjust the base CAIR NOx Annual Trading budget and the

CAIR NOx Annual Trading budget available for allocation, accordingly

.

(Source

: Added at 31 Ill . Reg .

,

effective -)

I

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Section 225 .430

Timing for Annual Allocations

---

a) No later than July 31, 2007, the

Agency will submit to USEPA the CAIR NOx

allowance allocations, in accordance with Sections 225

.435 and 225 .440, for the

2009, 2010, and 2011 control periods .

b)

By October 31, 2008, and October 31 of each year thereafter, the Agency

will submit to USEPA the CAIR NOx allowance allocations in accordance with

Sections 225 .435 and 225 .440, for the control period four years after the year

of the applicable deadline for submission pursuant to this Section 22 ; .430 .,

For example, on October 31, 2008, the Agency will submit to USEPA the

allocations for the 2012 control period .

c)

The Agency will allocate allowances from the NUSA to CAIR NOx units that

commence commercial operation on or after January 1, 2006

. The Agency will

report these allocations to USEPA by October 31 of the applicable control

period . For example, on October 31, 2009, the Agency will submit to USEPA the

allocations from the NUSA for the 2009 control period .

d)

The Agency will allocate allowances from the CASA to energy efficiency,

renewable energy, and clean technology projects pursuant to the criteria in

Sections 225 .455 through 225

.470 . The Agency will report these allocations to

USEPA by October 1 of each year

. For example, on October 1, 2009, the Agency

will submit to USEPA the allocations from the CASA for the 2009 control period,

based on reductions made in the 2008 control period .

(Source : Added at 31 Ill . Reg . , effective -)

Section 225 .435

Methodology for Calculating Annual Allocations

The Agency will calculate converted gross electrical output, in MWh, for each

CAIR NOx unit that has operated during at least one calendar year prior to the

calendar year in which the Agency reports the allocations to USEPA as follows

:

a)

For control periods 2009, 2010, and 2011, the owner or operator of the

unit must submit in writing to the Agencyy by June 1, 2007, a statement that

either gross electrical output data or heat input data is to be used to

calculate the unit's converted gross electrical output . The data shall be used

to calculate converted gross electrical output pursuant to either subsection

(a) (1) or (a) (2) of this Section :

1)

Gross electrical output-

.

.L If the unit has four or five control periods of

data, then the gross electrical output (GO) will be the average of the unit's

three highest gross electrical outputs from the 2001, 2002, 2003, 2004, or 2005

control periods . If the unit has three or fewer control periods of gross

electrical output data, the gross electrical output will be the average of those

control periods . If the unit does not have gross electrical output for the 2004

and 2005 control periods, the gross electrical output will be the gross

electrical output data from the 2005 control period . If a generator is served

by two or more units, the gross electrical output of the generator will be

attributed to each unit in proportion to the unit's share of the total control

period heat input of these units for the control period

. The unit's converted

gross electrical output will be calculated as follows :

A) If the unit is coal-fired :

CGO (in MWh) = GO ? MWh ? 1.0 ;

I

B) If the unit is oil-fired :

---

2)

Heat input (HI)-.L If the unit

has four or five control periods of data,

the average of the unit's three highest heat

inputynputs

from the 2001, 2002,

2003, 2004 or 2005 control period, will be used . If the unit has heat inputs

from the 2003, 2004, or 2005 control period, the heat input will be the average

of those years . If the unit does not have heat input from the 2004 and 2005

control periods, the heat input from the 2005 control period will be used

. The

unit's converted gross electrical output will be calculated as follows

:

b)

For control periods 2012 and 2013, the owner or operator of the unit must

submit in writing to the Agency, by June 1, 2008, a statement that either gross

electrical output data or heat input data will

be used to calculate the unit's

converted gross electrical output

. The unit's converted gross electrical output

shall be calculated pursuant to either subsection (b) (1) or (b) (2) of this

Section :

1)

Gross electrical output

-..L The average of the unit's two most recent years

of control period gross electrical output, if available ; otherwise it will be

the unit's most recent control period's gross electrical output

. If a generator

is served by two or more units, the gross electrical output of the generator

shall be attributed to each unit in proportion to the unit's share of the total

control period heat input of such units for the control period

. The unit's

converted gross electrical output shall be calculated as follows :

A) If the unit is coal-fired :

CGO (in MWh) = GO ? MWh ? 1.0

;

B) If the unit is oil-fired :

CGO (in MWh) = GO ? MWh

? 0.6 ;

C) If the unit is neither coal-fired nor oil-fired :

CGO (in MWh) = GO ? MWh ? 0.4

.

2)

Heat input:a

The average of the unit's two most recent years of control

period heat input

; otherwise the unit's most recent control period's heat input,

e .g .,.

for the 2012 control period, the average of the unit's heat input from the

2006 and 2007 control periods

. If the unit does not have heat input from the

2006 and 2007 control periods, the heat input from the 2007 control period shall

be used

. The unit's converted gross electrical output shall be calculated as

follows :

I

I

I

A) If the unit is coal-fired :

CGO (in MWh) = HI (in mmBtu)

? 0.0967 ;

COO

(in MWh) = GO ? MWh ? 0.6

; or

COO

(in MWh)

C)

= GOIf ?

the

MWhunit

? 8-40is

.4neither

.

coal-fired nor oil-fired

:

CGO (in MWh)

A)

= HI

If the unit is coal-fired :

(in mmBtu) ? 0

.0967

;

CGO (in MWh)

B)

= HI

If the unit is oil-fired :

(in mmBtu) ? 0 .0580 ; or

CGO (in MWh)

C)

= HI

If the unit is neither coal-fired nor oil-fired :

(in mmBtu) ?

0 .0387 .

---

c)

For control period

2014 and thereafter, the unit's gross electrical output

will be

the

average of

the unit's two most recent yours of control period

gross electrical output, if available ; otherwise it will be the unit's most

recent control period's gross electrical output . If a generator is served by

two or more units, the gross electrical output of the generator will be

attributed to each unit in proportion to the unit's share of the total control

period heat input of these units for the control period . The unit's converted

gross electrical output will be calculated as follows :

d)

For a unit that is a combustion turbine or boiler and has equipment used

to produce electricity and useful thermal energy for industrial, commercial,

heating, or cooling purposes through the sequential use of energy, the Agency

will add the converted gross electrical output calculated for electricity

pursuant to - ~-

^^^FubsPrr

. ;nn

(a) , (b)

, or (c) of this section to the

converted useful thermal energy (CUTE) to determine the total converted gross

electrical output for the unit (TCGO) . The Agency will determine the converted

useful thermal energy by using the average of the unit's control period useful

thermal energy for the prior two control periods, if available

;+ otherwise the

unit's control period useful thermal output for the prior year will be used .

The converted useful thermal energy will be determined using the following

equations :

CUTE (in MWh) = UTE (in mmBtu) ? 0.1172 .

e)

The CAIR NOx unit's converted gross electrical output and converted useful

thermal energy in subsections (a) (1), (b)(1), (c)_ and (d) of this section for

each control period will be based on the best available data reported or

available to the Agency for the CAIR NOx unit pursuant to the provisions of

Section 225 .450 .

I

I

I

f)

The CAIR NOx unit's heat input in subsections (a) (2) and (b) (2) of this

Section for each control period will be determined in accordance with 40 CFR 75,

as incorporated by reference in Section 225 .140 .

1) If the unit is coal-fired :

CUTE (in MWh) = UTE (in mmBtu) ? 0 .2930 ;

2) If the unit is oil-fired :

CUTE (in MWh) = UTE (in mmBtu) ? 0.1758 ; or

3)

If the unit is neither coal-fired nor oil-fired :

CGO (in MWh)

B)

= HI

If the unit is oil-fired :

(in mmBtu) ? 0 .0580 ; or

CGO (in MWh)

C)

= HI

If the unit is neither coal-fired nor oil-fired

:

(in mmBtu) ? 0 .0387 .

1)

If the unit is coal-fired :

CGO (in MWh) = GO ? 1.0 ;

2) If the unit is oil-fired :

CGO (in MWh) = GO ? 0.6 ; or

3) If the unit is neither coal-fired nor oil-fired :

CGO (in MWh) = GO ? 0.4 .

---

I

I

I

I

(Source :

Added at 31 Ill . Reg . , effective

-)

Section

225 .440 Annual Allocations

a)

For

the 2009 control period, and each

control period thereafter, the

Agency will allocate CAIR NOx allowanccam

to all CAIR NOx units in Illinois for

which the Agency has calculated the total converted gross electrical output

pursuant to Section 225

.435, a total amount of CAIR NOx allowances equal to tons

of NOx emissions in the CAIR NOx Annual Trading budget available for allocation

as determined in Section 225

.425 and allocated pursuant to this Section-

22-_ .110 . y

b)

The Agency will allocate CAIR NOx allowances to each CAIR NOx unit on a

pro-rata basis using the unit's total converted gross electrical output

calculated pursuant to Section 225 .435 . If there are insufficient allowances to

allocate whole allowances pro rata, these unallocated allowances will be

retained by the Agency and will be available for allocation in later control

periods .

(Source : Added at 31 Ill

. Reg . , effective -)

Section 225 .445

New Unit Set-Aside (NUSA)

For the 2009 control period and each control period thereafter, the Agency will

allocate CAIR NOx allowances from the NUSA to CAIR NOx units that commenced

commercial operation on or after January 1, 2006, and do not yet have an

allocation for the particular control period pursuant to Section 225

.440, in

accordance with the following procedures

:

a)

Beginning with the 2009 control period and each control period thereafter,

the Agency will establish a separate NUSA for each control period

. Each NUSA

will be allocated CAIR NOx allowances equal to Sfive

percent of the amount of

tons of NOx emissions in the base CAIR NOx Annual Trading budget in Section

225 .425 .

b)

The CAIR designated representative of a new CAIR NOx unit may submit to

the Agency a request, in a format specified by the Agency, to be allocated CAIR

NOx allowances from the NUSA. starting with the first control period after the

control period in which the new unit commences commercial operation and until

the first control period for which the unit may use CAIR NOx allowances

allocated to the unit pursuant to Section 225 .440 . The NUSA allowance

allocation request may only be submitted after a new unit has operated during

one control period, and no later than March 1 of the control period for which

allowances from the NUSA are being requested

.

c)

In a NUSA allowance allocation request pursuant to subsection (b) of this

Section, the CAIR designated representative must provide in its request

information for gross electrical output and useful thermal energy, if any, for

the new CAIR NOx unit for that control period .

d)

The Agency will allocate allowances from the NUSA to a new CAIR NOx unit

using the following procedures :

I

1)

For each new CAIR NOv ,n

;

, the unit's gross electrical output for the

most recent control period will be used to calculate the unit's gross electrical

output

. If a generator is served by two or more units, the gross electrical

---

output of the

generator will be attributed to each unit in proportion to the

unit's share of the total control period heat input of these units for the

control period . The new unit's converted gross electrical output will be

calculated as follows :

2)

If the unit is a combustion turbine or boiler and has equipment used to

produce electricity and useful thermal energy for industrial, commercial,

heating, or cooling purposes through the sequential use of energy, the Agency

will add the converted gross electrical output calculated for electricity

pursuant to subsection (d) (1) of this Section to the converted useful thermal

energy to determine the total converted gross electrical output for the unit .

The Agency will determine the converted useful thermal energy using the unit's

useful thermal energy for the most recent control period . The converted useful

thermal energy will be determined using the following equations

:

C)

If the unit is neither coal-fired nor oil-fired :

CUTE (in MWh) = UTE (in mmBtu)

? 0

.1172 .

3)

The gross electrical output and useful thermal energy in subsections

(d) (1) and (d) (2) of this Section for each control period will be based on the

best available data reported or available to the Agency for the CAIR NOx unit

pursuant to the provisions of Section 225 .450 .

4)

The Agency will determine a unit's unprorated allocation (j1y) using the

unit's converted gross electrical output plus the unit's converted useful

thermal energy, if any, calculated in subsections (d) (1) and (d) (2) of this

Section, converted to approximate NOx tons (the unit's unprorated allocation),

as follows

:

iTAv=T('.00vWhere*

:

(1 .0 lhs/MWh)2000 lhs/tnn

- UAv= unprorated allocation to a new CAIR NOx unit .

TCGnv=

total

converted gross electrical output for a

new CAIR NOx unit .

5)

The Agency will allocate CAIR NOx allowances from the NUSA to new CAIR NOx

units as follows :

I

I

I

A)

If the NUSA for the control period for which CAIR NOx allowances are

requested has a number of allowances greater than or equal to the total

unprorated allocations for all new units requesting allowances, the Agency will

allocate the number of allowances using the unprorated allocation determined for

that unit pursuant to subsection (d) (4) of this Section .

A) If the unit is coal-fired :

CGO (in MWh) = GO ? 1.0 ;

B) If the unit is oil-fired :

CGO (in MWh) = GO ? 0.6 ; or

C) If the unit is neither coal-fired nor oil-fired :

CGO (in MWh) = GO ? 0.4 .

A)

If the unit is coal-fired :

CUTE (in MWh) = UTE (in mmBtu)

? 0 .2930 ;

B)

If the unit is oil-fired :

CUTE (in MWh) = UTE (in mmBtu)

? 0.1758 ; or

---

B)

If the NUSA for the control period for which the allowances are requested

has a number of CAIR NOx allowances less than the total unprorated allocation to

all new CAIR NOx units requesting allocations, the Agency will allocate the

available allowances for new CAIR NOx units on a pro-rata basis, using the

unprorated allocation determined for that unit pursuant to subsection (d) (4) of

this Section . If there are insufficient allowances to allocate whole

allowances, the unallocated allowances will be retained by the Agency and will

be available for allocation in a later control period .

C)

If the gross electrical output or useful thermal energy reported to the

Agency

tursuant to

subsection (d) of this Section is later determined to be

greater than the unit's actual gross electrical output or useful thermal energy

for the applicable control period, the Agency will reduce the unit's allocation

from the NUSA for the current control period to account for the excess

allowances allocated in the prior control period or periods .

e)

The Agency will review each NUSA allowance allocation request pursuant to

subsection (b) of this Section . The Agency will accept a NUSA allowance

allocation request only if the request meets, or is adjusted by the Agency as

necessary to meet, the requirements of this Section 225 .11 ; . +

f) By June 1 of the applicable control period, the Agency will notify each

CAIR designated representative that submitted a NUSA allowance request of the

amount of CAIR NOx allowances from the NUSA, if any, allocated for the control

period to the new unit covered by the request .

g)

The Agency will allocate CAIR NOx allowances to new units from the NUSA no

later than October 31 of the applicable control period .

h)

After a new CAIR NOx unit has operated in one control period, it becomes

an existing unit for the purposes of Section 225 .440 only, and the Agency will

allocate CAIR NOx allowances for that unit, for the control period commencing

four years in the future, pursuant to Section 225 .440 . For example, if a unit

commences commercial operation in 2009, in 2010, the Agency will allocate to

that unit allowances pursuant to Section 225 .440 for the 2014 control period .

The new CAIR NOx unit will continue to receive CAIR NOx allowances from the NUSA

according to this Section until the unit is eligible to use the CAIR NOx

allowances allocated to the unit pursuant to Section 225 .440 .

i)

If, after the completion of the procedures in subsection (c) of this

Section for a control period, any unallocated CAIR NOx allowances remain in the

NUSA for the control period, the Agency will, at a minimum, accrue those CAIR

NOx allowances for future control period allocations to new CAIR NOx units . The

Agency may from time to time elect to retire CAIR NOx allowances in the NUSA

that are in excess of 15,881 for the purposes of continued progress toward

attainment and maintenance of National Ambient Air Quality Standards pursuant to

the CAA .

(Source : Added at 31 Ill . Reg . , effective -)

Section 225 .450

Monitoring, Recordkeeping and Reporting Requirements for

Gross Electrical Output and Useful Thermal Energy

I

I

I

a)

By January 1, 2008, or by the date of commencing commercial operation,

whichever is later, the owner or operator of the CAIR NOx unit must operate a

system for measuring gross electrical output that is consistent with the

---

I

I

requirements of either 40 CFR 60 or 75 ; must measure gross electrical output in

MWhrs

using such a system

; and must record the output of the measurement

system . If a generator is served by two or more units, the information to

determine each unit's heat input for that control period must also be recorded,

so as to allow each unit's share of the gross electrical output to be

determined

. If heat input data is used, the owner or operator must comply with

the applicable provisions 2L40 CFR 75, as incorporated by reference in Section

225

.140 .

b) For a CAIR NOx unit that is a cogeneration unit ; by January 1, 2008, or by

the date the CAIR NOx unit commences to produce useful thermal energy, whichever

is later, the owner or operator of ° CAInNOx . unitwith cogcncration

apabilitico

must install, calibrate, maintain, and operate meters for steam

flow in lbs/hr, temperature in degrees Fahrenheit, 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 NOx unit that produces

useful thermal energy but uses an energy transfer medium other than steam,

e .g .,

hot water or glycol, must install, calibrate, maintain, and operate the

necessary meters to measure and record the necessary data to express the useful

thermal energy produced, in mmBtu/hr, on a continuous basis . If the CAIR NOx

unit ceases to produce useful thermal energy, the owner or operator may cease

operation of the meters, provided that operation of these meters must be resumed

if the CAIR NOx unit resumes production of useful thermal energy

.

c)

The owner or operator of a CAIR NOx unit must either report gross

electrical output data to the Agency or comply with the applicable provisions

for providing heat input data to ITSRPA as follows :

1)

By June 1, 2007, the gross electrical output for control periods 2001,

2002, 2003, 2004 and 2005, if available, and; the unit's useful thermal energy

data, if applicable . If a generator is served by two or more units, the

documentation needed to determine each unit's share of the heat input of such

units for that control period must also be submitted . If heat input data is

used, the owner or operator must comply with the applicable provisions QL-40 CFR

75, as incorporated by reference in Section 225 .140 .

2)

By June 1, 2008, the gross electrical output for control periods 2006 and

2007, if available, and the unit's useful thermal energy data, if applicable .

If a generator is served by two or more units, the documentation needed to

determine each unit's share of the heat input of, such units for that control

period must also be submitted . If heat input data is used, the owner or

operator must comply with the applicable provisions of 40 CFR 75, as

incorporated by reference in Section 225 .140 .

d)

Beginning with y or 2008, the CAIR designated representative of the CAIR

NOx

unit must submit to the Agency quarterly, by no later than April 30, July

31, October 31, and January 31 of each year, information for the CAIR NOx unit's

gross electrical output, on a monthly basis for the prior quarter, and, if

applicable, the unit's useful thermal energy for each month .

I

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e)

The owner or operator of a CAIR NOx unit must maintain on-site the

monitoring plan detailing the monitoring system, maintenance of the monitoring

system, including quality assurance activities pursuant to the requirements of

40 CFR 60 and 75, including the applicable provisions for the measurement of

gross electrical output for the CAIR

NOx

's • •

-u and, if

applicable, for new units

. The monitoring plan must include, but is not limited

to :

---

1)

A description of the system to be used for the measurement of gross

electrical output pursuant to Section 225

.450(a), including a list of any data

logging devices, solid-state kW meters, rotating kW meters, electromechanical kW

meters, current transformers, transducers, potential transformers, pressure

taps, flow venturi, orifice plates, flow nozzles, vortex meters, turbine meters,

pressure transmitters, differential pressure transmitters, temperature

transmitters, thermocouples, resistance temperature detectors, and any equipment

or methods used to accurately measure gross electrical output .

2)

A certification statement by the CAIR designated representative that all

components of the gross electrical output system have been tested to be accurate

within three percent and that the gross electrical output system is accurate to

within ten percent .

f)

The owner or operator of a CAIR NOx unit must retain records for at least

5five years from the date the record is created or the data yg_collected

ixdaL

subsections (a) and (b) of this Section, and the reports are submitted to the

Agency and USEPA in accordance with subsections (c) and (d) of this Section .

The owner or operator of a CAIR NOx unit must retain the monitoring plan

required in subsection (e) of this Section for at least five years from the date

that it is replaced by a new or revised monitoring plan .

(Source : Added at 31 Ill . Reg . , effective

-)

Section 225 .455

Clean Air Set-Aside (CASA)

a)

A project sponsor may apply for allowances from the CASA for sponsoring an

energy efficiency and conservation, renewable energy, or clean technology

project as set forth in Section 225

.460 by submitting the application required

by Section 225 .470 .

b)

Notwithstanding subsection (a) of this Section, a project sponsor with a

CAIR NOx source that is out of compliance with this Subpart for a given control

period may not apply for allowances from the CASA for that control period . If a

source receives CAIR NOx allowances from Jhv_CASA

and then is subsequently found

to have been out of compliance with this Subpart for the applicable control

period or periods, the project sponsor must restore the CAIR NOx allowances that

it received pursuant to its CASA request or an equivalent number of CAIR NOx

allowances to the CASA within six months

e€affer receipt of an Agency notice

that NOx allowances must be restored

. These allowances will be assigned to the

fund from which they were distributed .

c)

CAIR NOx allowances from

the CASA will be allocated in accordance with the

procedures in Section 225 .475 .

d)

The project sponsor may submit an application that aggregates two or more

projects under a CASA project category that would individually result in less

than one allowance, but that equal at a minimum one whole allowance when

aggregated .

(Source :

-)

Added at 31 Ill . Reg . ,

effective

I

I

I

Section 225 .460

Energy Efficiency and Conservation, Renewable Energy, and

Clean

---

Technology Projects

a)

Energy efficiency

and conservation project means any of the following

projects implemented and located in Illinois

:

1)

Demand side management projects that reduce overall power demand by using

less energy

; include :

A)

Smart building management software that more efficiently regulates power

flows .

B)

The use of or replacement to high efficiency motors, pumps, compressors,

or steam systems .

C)

Lighting retrofits .

2)

Energy efficient new building construction projects include

:

A)

ENERGY STAR-qualified new home projects

.

B)

Measures to reduce or conserve energy consumption beyond the requirements

of the Illinois Energy Conservation Code for Commercial Buildings -~j20 ILCS

687/6-34-1 .

C)

New residential construction projects that qualify for Energy Efficient

Tax Incentives pursuant to the Energy Policy Act of

2005,

2005

(42

U.E .C .IISC

15801 (20051) .

3)

Supply-side energy efficiency projects include projects implemented to

improve the efficiency in electricity generation by coal-fired power plants

; and

the efficiency of electrical transmission and distribution systems

.

4)

Highly efficient power generation projects, such as, but not limited to,

combined cycle projects, combined heat and power, and microturbines

. To be

considered a highly efficient power generation project pursuant to this

subsection (a)

(4), a project must meet the

following-applicable thresholds and

criteria

liotcd bclow :

A)

For combined heat and power projects generating both electricity and

useful thermal energy for space, water, or industrial process heat, a rated-

energy efficiency of at least 60 percent

and ia

: the nroiect shall notes a CAIR

NOx unit .

B)

For combined cycle projects rated at greater than 0

.50 MW, a rated-energy

efficiency of at least 50 percent .

C)

For microturbine projects rated at or below 0

.50 MW and all other

projects, gyrated-energy efficiency of at least 40 percent

.

b)

Renewable energy project means any of the following projects implemented

and located in Illinois

:

I

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1)

zero-emission electric generating projects, including wind, solar (thermal

or photovoltaic), and hydropower projects

. Eligible hydropower plants are

---

restricted to new generators ; that are not replacements of existing generators,

that eemmeneecnmmencPd operation on or after January

1,

2006, andthat do not

involve the significant expansion of an existing dam or the construction of a

new dam .

2)

Renewable energy units are those units that generate electricity using

more than 50 percent of the heat input, on an annual basis, from dedicated crops

grown for energy production or the capture systems for methane gas from

landfills, water treatment plants or sewage treatment plants, and organic waste

biomass, and other similar sources of non-fossil fuel energy . Renewable energy

projects do not include energy from incineration by burning or heating of waste

wood, tires, garbage, general householI waGfe,

institutional lunchroom eewaste .

office waste, landscape waste, or construction or demolition debris .

c)

Clean technology project for reducing emissions from producing electricity

and useful thermal energy means any of the following projects implemented and

located in Illinois :

1)

Air pollution control equipment upgrades at existing coal-fired EGUs, as

follows : installation of flue gas desulfurization (FGD) for control of S02

emissions ; installation of a baghouse for control of particulate matter

emissions ; and installation of selective catalytic reduction (SCR), selective

non-catalytic reduction (SNCR), or other add-on control devices for control of

NOx emissions . Air pollution control upgrade projects do not include the

addition of low NOx burners, overfired air techniques or gas reburning

techniques for control of NOx emissions ; projects involving flue gas

conditioning techniques or upgrades, or replacement of electrostatic

precipitators ; or addition ofd activated carbon injection or other sorbent

injection system for control of mercury . For this purpose, a unit will be

considered "existing" after it has been in commercial operation for at least

eight years .

2)

Clean coal technologies projects include :

A)

Integrated gasification combined cycle (IGCC) plants

.

B)

Fluidized bed coal combustion .

d)

In addition to those projects excluded in subsections (a) through (c) of

this Section, the following projects are also not energy efficiency and

conservation, renewable energy, or clean technology projects :

1)

Nuclear power projects .

2)

Projects required to meet emission standards or technology requirements

under State or federal law or regulation, except that allowances may be

allocated for :

A)

The installation of a baghouse .

B)

Projects undertaken pursuant to section 225 .233 .

3)

Projects used to meet the requirements of a court order or consent decree,

except that allowances may be allocated for :

I

I

A)

Emission rates or limits achieved that are lower than what is required to

meet the emission rates or limits for S02 or NOx, or for installing a baghouse

---

I

as

provided for in a court order

or consent decree entered

into before May 30,

2006 .

B)

Projects

used

to meet the requirements of a court order or consent decree

entered into on or after May 30, 2006, if the court order or consent decree does

not specifically preclude such allocations

.

4)

A Supplemental Environmental Project (SEP)

.

e)

Applications for projects implemented and located in Illinois that are not

specifically listed in subsections (a) through (c) of this Section, and that are

not specifically excluded by definition in subsections (a) through (c) of this

Section or by specific exclusion in subsection (d) of this Section, may be

submitted to the Agency

. The application must designate which category or

categories from those listed in subsections (a) (1) through (c) (2) (A) of this

Section best fita

the proposed project and the applicable formula pursuant to

Section 225

.465(b) to calculate the number of allowances that it is requesting

.

The Agency will determine whether the application is approvable based on a

sufficient demonstration by the project sponsor that the project is a new type

of energy efficiency, renewable energy, or clean technology project, similar in

its effects as the projects specifically listed in

(a)

through (c) (2) (A) of this Section

.

f)

Early adopter projects include projects that meet the criteria for any

energy efficiency and conservation, renewable energy, or clean technology

projects listed in subsections

(a), (b), (c),

and (e) of this Section and

commence construction between July 1,

2006,2006

and December 31, 2012

.

(Source

: Added at 31 Ill . Reg .

, effective -)

Section 225 .465

Clean Air Set-Aside (CASA) Allowances

a)

The CAIR NOx allowances for the CASA for each control period will be

assigned to the following categories of projects

:

Phase

Phase;PhacP II

(2009-2014) (2015 and thereafter)

1)

Energy Efficiency and Conservation/

9149

762S

Renewable Energy

2914976292)

Air Pollution Control Equipment

3011

3179

Upgrades3381131743)

Clean Coal Technology

1573

3010

4457338104) Early Adopters 1529

12711S251271b)

The following formulas must be used to determine the number of

CASA allowances that may be allocated to a project per control period

:

1)

For an energy efficiency and conservation project pursuant to

Ccctiona$ection 225 .460(a)(1) through (a)

(4)(A),

the number of allowances must

be calculated using the number of megawatt hours of electricity that was not

consumed during a control period and the following formula

:

A

(MWhc) ? (1 .5 lb/MWh) / 2000 lb

I

Where :

---

A

=

The number of allowances for a

particular project .MWhc

=

The number of megawatt hours of electricity

conserved or generated during

a control period by a

project .

2)

For a zero emission electric generating

projcctnnroiect pursuant to

Section 225

.460(b)(1), the number of allowances must be calculated using the

number of megawatt hours of electricity generated during a control period and

the following formula :

A

(MWhg) ? (2 .0 lb/MWh) / 2000 lb

Where :

A

=

The number of allowances for a particular

projcctMWhg

prnierfMWhq=

The number of megawatt hours of electricity

generated

during a control period by a project

.

3)

For a renewable energy emission unit pursuant to Section 225

.460(b)(2),

the number of allowances must be calculated using the number of MWhs of

electricity generated during a control period and the following formula

:

A

(MWhg) ? (0

.5 lb/MWh) / 2000 lb

Where :

A

=

The number of allowances for a particular project

.

MWhg

=

The number of MW hours of electricity generated

during a

control period by a project .

4)

For an air pollution control equipment upgrade project pursuant to Section

225

.460(c)(1), the number of allowances will be calculated as follows

:

A)

For NOx or S02 control projects, by determining the difference in emitted

NOx or S02 per control period using the emission rate before and after

replacement or improvement, and the following formula

:

A=

(MWhg) ? K ? (ERB lb/MWh -

ERA lb/MWh) / 2000 lb

Where :

A

=

The number of allowances for a particular

project .

MWhg =

The number of megawatt hours of electricity generated during a

control period by a project . K

=

The pollutant factor : for NOx, K=

0 .1 ; and for $02, K = 0 .05

.ERB

=

Average Max or S02 emission rate based

on

GEMS data from the most recent two

control periods prior to the

replacement or

improvement of the control equipment in

lb/MWh, unless

subject to a court order

or consent decree

. For units subject to a court

order or consent decree entered into before May 30, 2006, ERB is limited to

emission rates that are lower than the emission rate required in the consent

decree or court order

. For a court order or consent decree entered into after

May 30, 2006, ERB is limited to the lesser of the emission rate specified in the

court order or consent decree or the actual average emission rate during the

control period

. If such limit is not expressed in lb/MWh, the limit must be

converted into lb/MWh using a heat rate of 10 mmBtu/1 MW

.ERA

=

Annual

NOx or S02 average emission rate

for the applicable control period data

based

on CEMS data in lb/MWh

.

B)

For a baghouse project :

A =

(MWhg) ? (Q lb/MWh) / 2000 lb

Where :

A = The number of allowances for a

particular project .

---

MWhg =

The number of MWh of electricity generated during a control

period or the portion of a control period that the units were controlled by the

baghouse .Q = 3+1 If a baghouse was not installed pursuant to a consent decree

or court order, Q shall equal 0 .2 .

2}1 If a baghouse was installed pursuant to a consent decree or court order

whichthat assigns a Q factor, then Q cqualo the factor established in the

consent decree or court order but must not exceed a factor of 0 .2 .

-)- If a baghouse was installed pursuant to a consent decree or court order

wk-iehthat does not assign a Q factor

. then Q shall equal :

•

= 0.25 - (P )U

ERq)

Where :

•

= If the most recent control period's average PM emission rate was based on PM

CEMS data, P equals 1 .0 ; otherwise P----l .1 .ERq = The magnitude of themost

recent control period's average PM emission rate in lb/MWh exiting the baghouse,

subject to the following limits :If P = 1 .0, then 1/10 = ERq = 2/lOIf P = 1 .1,

then 1/11 = ERq = 2/11

•

If the ERq is less than the lower limit, the lower limit shall be used .

•

If ERq is greater than the upper limit, the upper limit shall be used .

•

If DRgioRRri is not expressed in lb/MWh, the number must be converted to

lb/MWh using a heat ratio of 10 mmBtu/1 MW .

5)

For highly efficient power generation and clean technology projects

pursuant to CcctionoSertiou 225 .460 (a) (4)(B), (a)(4)(C), and (c)(2), the number

of allowances must be calculated using the number of megawatt hours of

electricity the project generates during a control period and the following

formula :

A

=

(MWhg) ? (1 .0 lb/MWh - ER lb/MWh) / 2000 lb

Where :

A

=

The number of allowances for a particular project .MWhg

=

The number of megawatt hours of electricity generated during a control

period by a project .

ER =

Annual average NOx emission rate based on

CEMS

data in lb/MWh .

6)

For a CASA project that commences construction before December 31, 2012,

in addition to the allowances allocated pursuant to subsections (b) (1) through

(b) (5) of this Section, a project sponsor may also request additional allowances

pursuant to the early adopter project category pursuant to Section 225 .460(e)

based on the following formula :

A

1 .0 + 0.10 ? S Ai

Where :

A

=

The number of allowances for a particular project as

determined in subsections (b) (1) through (b) (5) of

this Section .Ai

The number of allowances as determined in

subsection (b)(1),

(b)(2), (b)(3),

(b) (4) or (b) (5) of

this Section for a given project .

(Source : Added at 31 Ill . Reg . ,

effective -)

Section 225 .470

Clean Air Set-Aside (CASA) Applications

I

I

a)

A project sponsor may request allowances if the project commenced

construction on or after the dates listed be,ewy

n thin suuhpertin73

. The project

sponsor may request and be allocated allowances from more than one CASA category

for a project, if applicable .

---

1)

Demand side management,

energy efficient new construction, and supply side

energy efficiency and conservation projects that commenced construction on or

after January 1, 2003 ;

2)

Fluidized bed coal combustion projects, highly efficient power generation

operations projects, or renewable energy emission units, which that commenced

construction on or after January 1, 2001 ; and

3)

All other projects on or after July 1, 2006

.

b)

Beginning with the 2009 control period and each control period thereafter,

a project sponsor may request allowances from the CASA

. The application must be

submitted to the Agency by May 1 of the control period for which the allowances

are being requested .

c)

The allocation will be based on the electricity conserved or generated in

the control period preceding the calendar year in which the application is

submitted

. To apply for a CAIR NOx allocation from the CASA, project sponsors

must provide the Agency with the following information :

1)

Identification of the project sponsor, including name, address, type of

organization, certification that the project sponsor has met the definition of

"project sponsor" as set forth in Section 225 .130, and namc(o)pames of the

principals or corporate officials .

2)

The number of the CAIR NOx general or compliance account for the project

and the name of the associated CAIR account representative

.

3)

A description of the project or projects, location, the role of the

project sponsor in the projects, and a general explanation of how the amount of

energy conserved or generated was measured, verified, and calculated, and the

number of allowances requested with the supporting calculations . The number

of allowances requested will be calculated using the applicable formula from

Section 225 .470(b) .

4)

Detailed information to support the request for allowances, including the

following types of documentation for the measurement and verification of the NOx

emissions reductions, electricity generated, or electricity conserved using

established measurement verification procedures, as applicable . The measurement

and verification required will depend on the type of project proposed .

A)

As applicable, documentation of the project's base and control period

conditions and resultant base and control period energy data, using the

procedures and methods included in M&V Guidelines : Measurement and Verification

for Federal Energy Projects, incorporated by reference in Section 225 .140, or

other method approved by the Agency

. Examples include :

i)

Energy consumption and demand profiles ;

ii) Occupancy type ;

iii) Density and periods ;

iv)

Space conditions or plant throughput for each operating period and season

(ForjQr example, in a building this would include the light level and color,

space temperature, humidity and ventilation)

;

---

v)

Equipment

inventory, nameplate data, location,

and condition ; and

vi)

Equipment

operating practices (schedules and set

points, actual

temperatures/pressures)..;-B)

Emissions data, including, if

applicable, CEMS data ;

C)

Information

for rated-energy efficiency. including

supporting

documentation and calculations ; and

D)

Electricity, in MWh generated or conserved for the applicable control

period .

5)

Notwithstanding the requirements of

eubocctionoguhser,tinu (c) (4) of this

Section, applications for fewer than five allowances may propose other reliable

and applicable methods of quantification acceptable to the Agency

.

6)

Any additional information requested by the Agency to determine the

correctness of the requested number of allowances, including site information,

project specifications, supporting calculations, operating procedures, and

maintenance procedures .

7)

The following certification by the responsible official for the project

sponsor and the applicable CAIR account representative for the project

:

"I am authorized to make this submission on behalf of the project sponsor and

the holder of the CAIR NOx general account or compliance account for which the

submission is made

. I certify under penalty of law that I have personally

examined, and am familiar with, the statements and information submitted in this

application and all its attachments

. Based on my inquiry of those individuals

with primary responsibility for obtaining the information, I certify that the

statements and information are to the best of my knowledge and belief true,

accurate, and complete

. I am aware that there are significant penalties for

submitting false statements and information or omitting required statements and

information ."

d)

A project sponsor may request allowances from the CASA for each project

JQr_a

total number of control periods not to exceed the number of control

periods listed

bclowjn this auhsert.inn . After a project has been allocated

allowances from the

CASA, subsequent requests for the project from the project

sponsor must include the information required by subsections (c)

(1), (c)(2),

(c) (3) and (c) (7) of this Section, a description of any changes

; or further

improvements made to the project, and information specified in subsections

(c) (5) and (c) (6) as specifically requested by the Agency

.

1)

For energy efficiency and conservation projects (except for efficient

operation and renewable energy projects), for a total of eight control periods

.

2)

For early adopter projects, for a total of ten control periods

.

3)

For air pollution control equipment upgrades, for a total of 15 control

periods .

I

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I

I

4)

For renewable energy projects, clean coal technology, and highly efficient

power generation projects, for each year that the project is in operation

.

---

e)

A project sponsor must keep copies of all CASA applications and the

documentation used to support the application for at least five years

.

(Source

: Added at 31 Ill . Reg . ,

effective -)

Section 225 .475

Agency Action on clean Air Set-Aside (CASA) Applications

a)

By September 1,

2009,2009

and each September 1 thereafter, the Agency will

determine the total number of allowances that are approvable for allocation to

project sponsors based upon the applications submitted pursuant to Section

225 .470 .

1)

The Agency will determine the number of CAIR

NOx allowances that are

approvable based on the formulas and the criteria for these projects

. The

Agency will notify a project sponsor within 90 days after receipt of an

application if the project is not approvable, the number of allowances requested

is not approvable, or additional information is needed by the Agency to complete

its review of the application

.

2)

If the total number of CAIR NOx

allowances requested for approved projects

is less than or equal to the number of CAIR

NOx allowances in the CASA project

category, the number of allowances that are approved will be allocated to each

CAIR NOx compliance or general account

.

3)

If more CAIR NOx

allowances are requested than the number of CAIR

NOx

allowances in a given CASA project category, allowances will be allocated on a

pro-rata basis based on the number of allowances available, subject to further

adjustment as provided for by subsection (b) of this Section