TITLE 35: ENVIRONMENTAL PROTECTION
SUBTITLE B: AIR POLLUTION
CHAPTER I: POLLUTION CONTROL BOARD
SUBCHAPTER b: ALTERNATIVE REDUCTION PROGRAM
PART 205
EMISSIONS REDUCTION MARKET SYSTEM
SUBPART A: GENERAL PROVISIONS
Section
205.100 Severability
205.110 Purpose
205.120 Abbreviations and Acronyms
205.130 Definitions
205.150 Emissions Management Periods
SUBPART B: APPLICABILITY
Section
205.200 Participating Source
205.205 Exempt Source
205.210 New Participating Source
205.220 Insignificant Emission Units
205.225 Startup, Malfunction or Breakdown
SUBPART C: OPERATIONAL IMPLEMENTATION
Section
205.300 Seasonal Emissions Component of the Annual Emissions Report
205.310 ERMS Applications
205.315 CAAPP Permits for ERMS Sources
205.316 Federally Enforceable State Operating Permits for ERMS Sources
205.318 Certification for Exempt CAAPP Sources
205.320 Baseline Emissions
205.330 Emissions Determination Methods
205.335 Sampling, Testing, Monitoring and Recordkeeping Practices
205.337 Changes in Emissions Determination Methods and Sampling, Testing,
Monitoring and Recordkeeping Practices
SUBPART D: SEASONAL EMISSIONS MANAGEMENT
Section
205.400 Seasonal Emissions Allotment
205.405 Exclusions from Further Reductions
205.410 Participating Source Shutdowns
SUBPART E: ALTERNATIVE ATU GENERATION
Section
205.500 Emissions Reduction Generator
205.510 Inter-Sector Transaction
SUBPART F: MARKET TRANSACTIONS
Section
205.600 ERMS Database
205.610 Application for Transaction Account
205.620 Account Officer
205.630 ATU Transaction Procedures
SUBPART G: PERFORMANCE ACCOUNTABILITY
Section
205.700 Compliance Accounting
205.710 Alternative Compliance Market Account (ACMA)
205.720 Emissions Excursion Compensation
205.730 Excursion Reporting
205.740 Enforcement Authority
205.750 Emergency Conditions
205.760 Market System Review Procedures
AUTHORITY: Implementing Section 9.8 and authorized by Sections 27 and 28 of the
Environmental Protection Act [415 ILCS 5/9.8, 27 and 28].
SOURCE: Adopted at 21 Ill. Reg. 15777, effective November 27, 1997; amended in
R05-11 at 29 Ill. Reg. 8848, effective June 13, 2005.
SUBPART A: GENERAL PROVISIONS
Section 205.100 Severability
If any Section, subsection, sentence or clause of this Part is judged invalid, such
adjudication shall not affect the validity of this Part as a whole or of any Section,
subsection, sentence or clause thereof not judged invalid.
Section 205.110 Purpose
The purpose of this Part is to implement the Emissions Reduction Market System
(ERMS) regulatory program consistent with the assurances that are specified in Section
9.8 of the Environmental Protection Act [415 ILCS 5/9.8]. The ERMS is designed, as
further specified in this Part, to achieve the following:
a) Implement innovative and cost-effective strategies to attain the national
ambient air quality standard (NAAQS) for ozone and to meet the
requirements of the Clean Air Act;
b) Increase flexibility for participating sources and lessen the economic
impacts associated with implementation of the Clean Air Act;
c) Take into account the findings of the national ozone transport assessment
coordinated by the Environmental Council of States with participation by
the United States Environmental Protection Agency and by the Lake
Michigan Air Directors Consortium; and
d) Assure that sources subject to the ERMS regulatory program will not be
required to reduce emissions to an extent that exceeds their proportionate
share of the total emissions reductions required of all emission sources,
including mobile and area sources.
Section 205.120 Abbreviations and Acronyms
Unless otherwise specified within this Part, the abbreviations used in this Part shall be the
same as those found in 35 Ill. Adm. Code 211. The following abbreviations and
acronyms are used in this Part:
ACMA Alternative Compliance Market Account
Act Environmental Protection Act [415 ILCS 5]
ATU Allotment Trading Unit
BAT Best Available Technology
CAA Clean Air Act as amended in 1990 [42 U.S.C. 7401 through 7671q]
CAAPP Clean Air Act Permit Program
ERMS Emissions Reduction Market System
FESOP Federally Enforceable State Operating Permit
LAER Lowest Achievable Emission Rate
MACT Maximum Achievable Control Technology
NAAQS National Ambient Air Quality Standard
NESHAP National Emission Standards for Hazardous Air Pollutants
RFP Reasonable Further Progress
ROP Rate of Progress
USEPA United States Environmental Protection Agency
VOM Volatile Organic Material
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.130 Definitions
Unless otherwise specified within this Part, the definitions for the terms used in this Part
shall be the same as those found in Section 39.5 of the Act [415 ILCS 5/39.5] and in 35
Ill. Adm. Code 211.
“Account officer” means a natural person who has been approved by the Agency,
as specified in Section 205.620 of this Part, and is subsequently responsible for
one or more Transaction Accounts to which he or she is designated.
“Allotment” means the number of allotment trading units (ATUs) allotted to a
source by the Agency, as established in the source’s CAAPP permit or FESOP.
“Allotment Trading Unit (ATU)” means a tradable unit that represents 200 lbs of
VOM emissions and is a limited authorization to emit 200 lbs of VOM emissions
during the seasonal allotment period.
“Annual Emissions Report” means the report submitted to the Agency annually
pursuant to 35 Ill. Adm. Code 254.
“Baseline emissions” means a participating source's VOM emissions for the
seasonal allotment period based on historical operations as determined under
Subpart C of this Part. Baseline emissions shall be the basis of the allotment for
each participating source.
“Best Available Technology (BAT)” means an emission level based on the
maximum degree of reduction of VOM emitted from or which results from any
emission unit, which the Agency, on a case-by-case basis, taking into account
energy, environmental and economic impacts, determines is achievable for such
unit through application of production processes and available methods, systems,
and techniques for control of VOM, considering the features and production
process and control methods, systems and techniques already used for the unit.
BAT for an emission unit shall not be more stringent than Best Available Control
Technology (BACT) as would be determined contemporaneously for such unit
under the federal rules for Prevention of Significant Deterioration of Air Quality
(PSD), 40 CFR 52.21 (1996). In no event shall application of “best available
technology” result in emissions of VOM which exceed the emissions allowed by
any standard established pursuant to Section 111 of the Clean Air Act, if such a
standard is applicable to the category of emission unit.
“CAAPP” means the Clean Air Act Permit Program, pursuant to Section 39.5 of
the Act [415 ILCS 5/39.5].
“Chicago area” means the area composed of Cook, DuPage, Kane, Lake,
McHenry, and Will Counties and Aux Sable Township and Goose Lake
Township in Grundy County and Oswego Township in Kendall County.
“Emergency” means any situation arising from sudden and reasonably
unforeseeable events beyond the control of the source, such as an act of God, that
requires immediate corrective action to restore normal operation.
“Emissions excursion” refers to the event that occurs when a participating source
or new participating source does not hold sufficient ATUs at the end of a
reconciliation period to account for its VOM emissions from the preceding
seasonal allotment period, in accordance with Section 205.150(c) or (d) of this
Subpart.
“Excursion Compensation Notice” means an administrative notice issued by the
Agency, pursuant to Section 205.720 of this Part, that notifies the owner or
operator of a participating source or new participating source that the Agency has
determined that the source has had an emissions excursion.
“General participant” means any person, other than a participating source or new
participating source, that obtains a Transaction Account and is allowed to buy and
sell ATUs.
“New participating source” means a source not operating prior to May 1, 1999,
located in the Chicago area, that emits or has the potential to emit 25 tons per year
or more of VOM or is required to obtain a CAAPP permit; and has or will have
seasonal emissions of at least 10 tons of VOM.
“Participating source” means a source operating prior to May 1, 1999, located in
the Chicago area, that emits or has the potential to emit 25 tons per year or more
of VOM or is required to obtain a CAAPP permit; and has baseline emissions of
at least 10 tons, as specified in Section 205.320(a) of this Part, or seasonal
emissions of at least 10 tons in any seasonal allotment period beginning in 1999.
“Reconciliation period” means the period from October 1 through December 31
of each year during which the owner or operator of a participating source or new
participating source must compile actual VOM emissions for the previous
seasonal allotment period and may also buy or sell ATUs so that sufficient ATUs
are held by the source by the conclusion of the reconciliation period.
“Seasonal allotment period” means the period from May 1 through September 30
of each year.
“Seasonal emissions” means actual VOM emissions at a source that occur during
a seasonal allotment period.
“Sell” means to transfer ATUs to another person through sale, lease, trade or
other means of transfer.
“Special participant” means any person that registers with the Agency and may
purchase and retire ATUs but not sell ATUs, as specified in Section 205.610 of
this Part.
“Throughput” means the activity of an emission unit during a particular period
relevant to its generation of VOM emissions, including, but not limited to, the
amount of material transferred for a liquid storage operation, the amount of
material processed through or produced by the emission unit, fuel usage, or the
weight or volume of coatings or inks.
“Transaction Account” means an account authorized by the Agency or its
designee that allows an account officer to buy or sell ATUs.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.150 Emissions Management Periods
a) The VOM emissions control period is the seasonal allotment period,
which is from May 1 through September 30, annually.
b) The reconciliation period is from October 1 to December 31, annually.
During each reconciliation period, participating sources and new
participating sources shall:
1) Compile data of actual VOM emissions during the immediately
preceding seasonal allotment period; and
2) Submit its seasonal emissions component of its Annual Emissions
Report, in accordance with Section 205.300 of this Part.
c) At the end of each reconciliation period, on and after the dates specified in
Section 205.200 of this Part, each participating source shall:
1) Hold ATUs in an amount not less than its VOM emissions during
the preceding seasonal allotment period, except as provided in
Sections 205.220, 205.225, 205.315, 205.316, 205.320(e)(3) or (f)
and 205.750 of this Part; or
2) Except as provided in subsection (f) of this Section, hold ATUs in
an amount not less than 1.3 times its emissions during the
preceding seasonal allotment period that are attributable to a major
modification, if a participating source commences operation of a
major modification pursuant to 35 Ill. Adm. Code 203 on or after
May 1, 1999. Additionally, such source must hold
ATUs in accordance with subsection (c)(1) of this Section for
VOM emissions during the preceding seasonal allotment period
that are not attributable to this major modification.
d) At the end of each reconciliation period, beginning with the reconciliation
period immediately following the seasonal allotment period in which the
source first becomes a new participating source, as specified in Section
205.210 of this Part, each new participating source shall:
1) Except as provided in subsection (f) of this Section, if the new
participating source is a new major source pursuant to 35 Ill. Adm.
Code 203, hold ATUs in an amount not less than 1.3 times its
VOM emissions during the preceding seasonal allotment period; or
2) If the new participating source is not a new major source pursuant
to 35 Ill. Adm. 203, hold ATUs in an amount not less than its
VOM emissions during the preceding seasonal allotment period,
except as provided in Sections 205.220, 205.225 and 205.750 of
this Part.
e) Except as provided in subsection (f) of this Section, any participating
source that commences operation of a major modification on or after May
1, 1999, or any new participating source that is a new major source,
which, at the end of each reconciliation period, holds ATUs in an amount
not less than 1.3 times the VOM emissions during the preceding seasonal
allotment period, in accordance with subsection (c)(2) or (d)(1) of this
Section, as applicable, shall be deemed to have satisfied the VOM offset
requirements of 35 Ill. Adm. Code 203.302(a), 203.602 and 203.701.
f) Chicago area classification
1) If the nonattainment classification of the Chicago area for ozone is
changed such that the required offset ratio is no longer 1.3 to 1 and
a new offset ratio applies, as specified in 35 Ill. Adm. Code
203.302, that ratio shall then apply in lieu of the 1.3 to 1 ratio set
forth in subsections (c)(2), (d)(1), and (e) of this Section. Such
new ratio shall not apply to any part of a source or any
modification already subject to the 1.3 to 1 ratio or other
previously-effective offset ratio established prior to the effective
date of the new ratio.
2) If the Chicago area is designated as attainment for ozone, the 1.3 to
1 ratio set forth in subsections (c)(2), (d)(1), and (e) of this Section
or any new ratio established pursuant to subsection (f)(1) of this
Section shall cease to apply. However, such ratio shall continue to
apply to any part of a source or any modification that is already
subject to the ratio prior to such designation.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
SUBPART B: APPLICABILITY
Section 205.200 Participating Source
a) The requirements of this Part shall apply to any source operating prior to
May 1, 1999, located in the Chicago area, that
1) emits or has the potential to emit 25 tons per year or more of VOM
or is required to obtain a CAAPP permit; and
2) has baseline emissions of at least 10 tons, as specified in Section
205.320(a) of this Part, or seasonal emissions of at least 10 tons in
any seasonal allotment period beginning in 1999.
b) Each participating source shall hold ATUs, as specified in Section
205.150(c) of this Part, in accordance with the following schedule:
1) For any participating source that has baseline emissions of at least
10 tons of VOM, as determined in accordance with Section
205.320(a) of this Part, beginning with the 1999 seasonal allotment
period;
2) For any source that first becomes a participating source because its
VOM emissions increase to 10 tons per season or more in any
seasonal allotment period beginning with 1999 and this emissions
increase is not a major modification pursuant to 35 Ill. Adm. Code
203, beginning with the first seasonal allotment period after such
increased emissions occurred; or
3) For any source that will first be subject to the requirements of this
Part because of a VOM emissions increase at any time on or after
May 1, 1999 that constitutes a major modification pursuant to 35
Ill. Adm. Code 203, upon commencing operation of this
modification.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.205
Exempt Source
a) Any source that otherwise meets the criteria for participating sources shall
be exempt from the requirements of this Part, except that any such source
shall be required to obtain a CAAPP permit or FESOP and submit the
seasonal emissions component of the Annual Emissions Report as
specified in Section 205.300 of this Part, if the source accepts a 15 tons
per seasonal allotment period limit on its VOM emissions in its CAAPP
permit or FESOP for each seasonal allotment
period in which the source would be required to participate in the ERMS
in accordance with the following:
1) If the source would be required to participate in the ERMS
beginning with the 1999 seasonal allotment period in accordance
with Section 205.200(b)(1) of this Subpart, such source shall apply
for the applicable permit limitation by March 1, 1998; or
2) If the source is required to participate in the ERMS in any seasonal
allotment period after 1999 because its VOM emissions increase to
10 tons or more in any seasonal allotment period beginning with
1999 in accordance with Section 205.200(b)(2) of this Subpart,
such source shall apply for the applicable permit limitation by
December 1 of the first year in which its seasonal emissions are at
least 10 tons.
b) Any source that otherwise meets the criteria for participating sources shall
be exempt from the requirements of this Part, except that any such source
shall be required to submit the seasonal emissions component of the
Annual Emissions Report and an ERMS application as specified in
Sections 205.300 and 205.310(d) of this Part, respectively, if such source
reduces its seasonal emissions by at least 18 percent beginning in 1999.
Any such source shall accept conditions in its CAAPP permit or FESOP
limiting its seasonal emissions to at least 18 percent less than its baseline
emissions, as determined in accordance with Section 205.320 of this Part.
Any such source shall apply for the applicable permit limitation(s) by
March 1, 1998. ATUs equivalent to any amount of VOM emissions
reductions achieved by the source beyond 12 percent (at least six percent)
shall be issued by the Agency to the ACMA.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.210 New Participating Source
a) The requirements of this Part shall apply to any new participating source,
a source not operating prior to May 1, 1999, located in the Chicago area,
that
1) emits or has the potential to emit 25 tons per year or more of VOM
or is required to obtain a CAAPP permit; and
2) has or will have seasonal emissions of at least 10 tons of VOM.
b) Each new participating source shall hold ATUs, as specified in Section
205.150(d) of this Part.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.220 Insignificant Emission Units
a) Emission units identified as insignificant activities pursuant to the CAAPP
permit for a participating or new participating source are exempt from the
requirements of this Part.
b) Emission units that the Agency determines would qualify as insignificant
activities under 35 Ill. Adm. Code 201.Subpart F if the source were a
CAAPP source and for which a statement to this effect is contained in the
FESOP for a participating or new participating source are exempt from the
requirements of this Part.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.225 Startup, Malfunction or Breakdown
Participating or new participating sources permitted to operate during startup,
malfunction or breakdown pursuant to 35 Ill. Adm. Code 201.262, 270.407 and 270.408
are not required to hold ATUs for excess VOM emission during startup, malfunction and
breakdown as authorized in the source’s permit.
SUBPART C: OPERATIONAL IMPLEMENTATION
Section 205.300 Seasonal Emissions Component of the Annual Emissions
Report
a) For each year in which the source is operational, the owner or operator of
each participating source and new participating source shall submit, as a
component of its Annual Emissions Report, seasonal emissions
information to the Agency for each seasonal allotment period after the
effective date of this Part in accordance with the following schedule:
1) For each participating source or new participating source that
generates VOM emissions from less than 10 emission units, by
October 31 of each year; and
2) For each participating source or new participating source that
generates VOM emissions from 10 or more emission units, by
November 30 of each year.
b) In addition to any information required pursuant to 35 Ill. Adm. Code 254,
the seasonal emissions component of the Annual Emissions Report shall
contain the following information for the preceding seasonal allotment
period for each emission unit emitting or capable of emitting VOM,
except that such information is not required for emission units excluded
pursuant to Section 205.220 of this Part or for VOM emissions attributable
to startup, malfunction or breakdown, as specified in Section 205.225 of
this Part:
1) Actual seasonal emissions of VOM from the source;
2) A description of the methods and practices used to determine
VOM emissions, as required by the source’s CAAPP permit or
FESOP, including any supporting documentation and calculations;
3) A detailed description of any monitoring methods that differ from
the methods specified in the CAAPP permit or FESOP for the
source, as provided in Section 205.337 of this Subpart;
4) If a source has experienced an emergency, as provided in Section
205.750 of this Part, it shall reference the associated emergency
conditions report that has been approved by the Agency;
5) If a source's baseline emissions have been adjusted because of a
variance, consent order or CAAPP permit compliance schedule, as
provided for in Section 205.320(e)(3) of this Subpart, it shall
provide documentation quantifying the adjusted VOM emissions
amount; and
6) If a source is operating a new or modified emission unit for which
three years of operational data is not yet available, as specified in
Section 205.320(f) of this Subpart, it shall specify seasonal
emissions attributable to the new emission unit or the modification
of the emission unit.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.310
ERMS Applications
a) The owner or operator of each participating source or new participating
source shall submit to the Agency an ERMS application in accordance
with the following schedule:
1) For a participating source with baseline emissions of at least 10
tons of VOM, as determined in accordance with Section
205.320(a) of this Subpart, by March 1, 1998;
2) For any source that first becomes a participating source or new
participating source because its VOM emissions increase to 10
tons or greater during any seasonal allotment period beginning
with 1999, on or before December 1 of the year of the first
seasonal allotment period in which its VOM emissions are at least
10 tons, provided that this emissions increase is not a major
modification pursuant to 35 Ill. Adm. Code 203;
3) For any source that first becomes a participating source or new
participating source due to a major modification subject to 35 Ill.
Adm. Code 203 based on VOM emissions, at the time a
construction permit application is submitted or due for the
modification, whichever occurs first; or
4) For a source that will be a new participating source when it
commences construction and that is also a major new source under
35 Ill. Adm. Code
203 based on VOM emissions, at the time a construction permit
application is submitted or due for the source, whichever occurs
first.
b) Except as provided in subsection (d) of this Section, each ERMS
application for participating sources shall contain all information required
by the Agency pursuant to Section 39.5 of the Act [415 ILCS 5/39.5] or
reference such information if previously submitted to the Agency,
including the following information:
1) Data sufficient to establish the appropriate baseline emissions for
the source in accordance with Section 205.320 of this Subpart,
including but not limited to the following:
A) VOM emissions data and production types and levels from
the baseline emissions year(s), as specified in Section
205.320(a)(1), (b) or (c) of this Subpart, as appropriate;
B) If the source is proposing a substitute baseline emissions
year(s), as provided in Section 205.320(a)(2) of this
Subpart, a justification that the year is more representative
than 1994, 1995 or 1996, including data on production
types and levels from the proposed substitute year(s) and
historical production data, as needed to justify that the
proposed substitute year(s) is representative; and
C) If the source is proposing a baseline emissions adjustment
based on voluntary over-compliance, as provided in
Section 205.320(d) of this Subpart, sufficient information
for the Agency to determine the appropriate adjustment;
2) A description of methods and practices used to determine baseline
emissions and that will be used to determine seasonal emissions
for purposes of demonstrating compliance with this Part, in
accordance with Sections 205.330 and 205.335 of this Subpart;
3) Identification of any emission unit for which exclusion from
further reductions is sought pursuant to Section 205.405(b) of this
Part and including all of the information required pursuant to
Section 205.405(b) of this Part;
4) Identification of any emission unit excluded from further
reductions pursuant to Section 205.405(a) of this Part; and
5) Identification of any new or modified emission unit for which a
construction permit was issued prior to January 1, 1998, but for
which three years of operational data is not available, and the
permitted VOM
emissions or the permitted increase in VOM emissions from such
emission unit(s), adjusted for the seasonal allotment period.
c) Except as provided in subsection (h) of this Section, the ERMS
application submitted by each participating source shall also be an
application for a significant modification of its CAAPP permit or a
revision to its FESOP, or a revision to its CAAPP or FESOP application if
a CAAPP permit or FESOP has not yet been issued for the source.
d) The ERMS application for any source that elects to reduce its seasonal
emissions by at least 18 percent from its baseline emissions, as provided in
Section 205.205(b) of this Part, shall include:
1) VOM emissions data sufficient to establish the appropriate
baseline emissions for the source in accordance with Section
205.320 of this Subpart; and
2) A description of methods and practices used to determine baseline
emissions and that will be used to demonstrate that its seasonal
emissions will be at least 18 percent less than its baseline
emissions, in accordance with Sections 205.330 and 205.335 of
this Subpart.
e) Within 120 days after receipt of an ERMS application, the Agency shall
provide written notification to the source of a preliminary baseline
emissions determination. Public notice of a draft CAAPP permit or
FESOP shall fulfill this requirement for a preliminary baseline emissions
determination if issued within 120 days.
f) The ERMS application for each source applying for a major modification,
as provided in subsection (a)(3) of this Section, shall include the
information specified in subsection (b) of this Section and a certification
by the owner or operator recognizing that the source will be required to
hold ATUs by the end of each reconciliation period in accordance with
Section 205.150(c)(2) of this Part, and provide a plan explaining the
means by which it will obtain ATUs for the VOM emissions attributable
to the major modification for the first three seasonal allotment periods in
which this major modification is operational.
g) The ERMS application for each new participating source shall include:
1) A description of methods and practices that will be used to
determine seasonal emissions for purposes of demonstrating
compliance with this Part, in accordance with Sections 205.330
and 205.335 of this Subpart;
2) A certification by the owner or operator recognizing that the
source will be required to hold ATUs by the end of each
reconciliation period in
accordance with Section 205.150(d) of this Part for each seasonal
allotment period in which it is operational; and
3) If the source is a new major source subject to 35 Ill. Adm. Code
203, a plan explaining means by which it will obtain such ATUs
for the first three seasonal allotment periods in which it is
operational.
h) The owner or operator of any participating source that has identified a new
or modified emission unit, as specified in subsection (b)(5) of this Section,
shall submit a written request for, or an application for, a revised
emissions baseline and allotment. Such written request or application
shall be submitted by December 1 of the year of the third complete
seasonal allotment period in which such newly constructed emission unit
is operational, which submittal shall include information on the seasonal
emissions for these first three seasonal allotment periods.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.315 CAAPP Permits for ERMS Sources
a) The Agency shall determine the baseline emissions for each participating
source in accordance with Section 205.320 of this Subpart, through its
final permit action on a new or modified CAAPP permit for each such
source. The Agency’s baseline emissions determination may be appealed
in accordance with the CAAPP appeal procedures specified in Section
40.2 of the Act [415 ILCS 5/40.2]. If the permit conditions establishing a
source’s baseline emissions are appealed, the baseline emissions for the
source shall be as proposed in the source’s ERMS application during the
pendency of the appeal. During the pendency of the appeal, ATUs shall
be allotted to the source pursuant to the part of the source’s proposed
baseline emissions that is not disputed in the appeal. If such source’s
seasonal VOM emissions exceed the ATUs it holds at the end of
reconciliation periods during the pendency of the appeal, the source will
not be deemed to have had an emissions excursion to the extent that such
seasonal VOM emissions do not exceed the amount it proposed as its
baseline in its ERMS application, less reductions required pursuant to
Section 205.400(c) or (e) of this Part, if applicable. Such source shall not
be allowed to sell ATUs during the pendency of the appeal.
b) The Agency shall determine, in accordance with Sections 205.330 and
205.335 of this Subpart, the methods and practices applicable to each
participating source and new participating source to determine seasonal
emissions through its final permit action on a new or modified CAAPP
permit for each such source. The Agency's determination of the methods
and practices applicable may be appealed in accordance with the CAAPP
appeal procedures specified in Section 40.2 of the Act [415 ILCS 5/40.2].
c) The Agency shall determine, in accordance with Section 205.405(b) of
this Part, if an emission unit qualifies for exclusion from further
reductions in its final permit action on a new or modified CAAPP permit
for each such source. The Agency’s determination may be appealed in
accordance with the CAAPP appeal procedures specified in Section 40.2
of the Act [415 ILCS 5/40.2 ]. If the permit conditions establishing the
Agency’s BAT determination are appealed, ATUs shall be allotted to the
source for any emission unit for which the Agency’s BAT determination is
being appealed with the emissions reduction required by Section
205.400(c) or (e) of this Part during the pendency of the appeal. If the
seasonal VOM emissions for the subject emission unit(s) exceed the
ATUs that are attributed to the unit(s) during the pendency of the appeal,
the source will not be deemed to have an emissions excursion to the extent
that such seasonal VOM emissions do not exceed the amount of ATUs
that would be attributed to this unit if the BAT exclusion was accepted.
Such source shall not be allowed to sell ATUs during the pendency of the
appeal.
d) The allotment for each participating source for each seasonal allotment
period shall be specified in its CAAPP permit.
e) To the extent possible, the Agency shall initiate the procedures of 35 Ill.
Adm. Code 252, as required by Section 39.5 of the Act [415 ILCS 5/39.5],
by grouping the draft CAAPP permits and supporting documents for
participating sources. Specifically, to the extent possible, the Agency
shall issue a joint public notice and hold a joint hearing, as appropriate,
addressing participating sources for which a hearing is requested.
f) When a CAAPP permit for a participating source is transferred from the
current permittee to another person:
1) In the case of a name change of the participating source where
ownership is not altered, appropriate documentation shall be
submitted to revise the Transaction Account to reflect the name
change; or
2) In the case of an ownership change of the participating source, the
allotment shall also be transferred by the owner or operator of the
permitted source to the new owner or operator, or the new owner
or operator shall submit a statement to the Agency certifying that
such transfer is not occurring and demonstrating that necessary
ATUs are or will be available by other means for the intended
operation of the source.
g) Upon reopening or renewal of the CAAPP permit for any participating
source or new participating source, any multiple season transfer
agreement, as provided in Section 205.630(a)(2)(B) of this Part, that has
three or more years of transfers remaining shall be identified in the
renewed or reissued CAAPP permit for each such source.
h) Upon reopening or renewal of the CAAPP permit for any participating
source or new participating source, any ATUs that will be issued by the
Agency for three years or more to any such source pursuant to Section
205.410, 205.500 or 205.510 of this Part shall be identified in the renewed
or reissued CAAPP permit for each such source.
Section 205.316 Federally Enforceable State Operating Permits for ERMS Sources
a) Any participating or new participating source shall not operate without a
CAAPP permit or FESOP.
1) If a source has a CAAPP permit containing ERMS provisions and
the source elects to obtain a different permit in lieu of the CAAPP
permit, the source shall apply for and obtain a FESOP that contains
ERMS provisions including, but not limited to, emissions
calculation methodologies, baseline emissions, and allotment for
each seasonal allotment period, all of which are identical to those
provisions contained in its CAAPP permit.
2) If a participating or new participating source does not have a
CAAPP permit containing ERMS provisions and the source elects
to obtain a permit other than a CAAPP permit, the source shall
apply for and obtain a FESOP that contains, in addition to other
necessary provisions, federally enforceable ERMS provisions,
including baseline emissions, allotment for each seasonal allotment
period, identification of any units deemed to be insignificant
activities for the purposes of the ERMS, emissions calculation
methodologies, and provisions addressing all other applicable
requirements of this Part.
b) When determining the baseline emissions and allotment for a participating
source as required under subsection (a)(2) of this Section:
1) The Agency shall determine baseline emissions in accordance with
Section 205.320 of this Subpart, through its final permit action on
the new or modified FESOP for the source. The Agency’s
baseline emissions determination may be appealed in accordance
with the appeal procedures specified in Section 40 of the Act [415
ILCS 5/40]. If the permit conditions establishing a source’s
baseline emissions are appealed, the baseline emissions for the
source shall be as proposed in the source’s ERMS application
during the pendency of the appeal. During the pendency of the
appeal, ATUs shall be allotted to the source pursuant to the part of
the source’s proposed baseline emissions that is not disputed in the
appeal. If such source’s seasonal VOM emissions exceed the
ATUs it holds at the end of reconciliation periods during the
pendency of the appeal, the source will not be deemed to have had
an emissions excursion to the extent that such seasonal VOM
emissions do not exceed the amount it proposed as its baseline in
its ERMS application, less reductions required pursuant to Section
205.400(c) or (e) of this Part, if applicable. Such source shall not
be allowed to sell ATUs during the pendency of the appeal.
2) The Agency shall determine, in accordance with Section
205.405(b) of this Part, if an emission unit qualifies for exclusion
from further reductions in its final permit action on a new or
modified FESOP for the source. The Agency’s determination may
be appealed in accordance with the appeal procedures specified in
Section 40 of the Act [415 ILCS 5/40]. If the permit conditions
establishing the Agency’s BAT determination are appealed, ATUs
shall be allotted to the source for any emission unit for which the
Agency’s BAT determination is being appealed with the emissions
reduction required by Section 205.400(c) or (e) of this Part during
the pendency of the appeal. If the seasonal VOM emissions for the
subject emission unit(s) exceed the ATUs that are attributed to the
unit(s) during the pendency of the appeal, the source will not be
deemed to have an emissions excursion to the extent that such
seasonal VOM emissions do not exceed the amount of ATUs that
would be attributed to this unit if the BAT exclusion was accepted.
Such source shall not be allowed to sell ATUs during the pendency
of the appeal.
c) The Agency shall determine, in accordance with Sections 205.330 and
205.335 of this Subpart, the methods and practices applicable to the
participating source or new participating source to determine seasonal
emissions through its final permit action on the new or modified FESOP
for such source. The Agency's determination of the methods and practices
applicable may be appealed in accordance with the appeal procedures
specified in Section 40 of the Act [415 ILCS 5/40].
d) When a FESOP for a participating source or new participating source is
transferred from the current permittee to another person:
1) In the case of a name change of the participating source or new
participating source where ownership is not altered, appropriate
documentation shall be submitted to revise the Transaction
Account to reflect the name change; or
2) In the case of an ownership change of the participating source or
new participating source, the allotment shall also be transferred by
the owner or operator of the permitted source to the new owner or
operator, or the new owner or operator shall submit a statement to
the Agency certifying that such transfer is not occurring and
demonstrating that necessary ATUs are or will be available by
other means for the intended operation of the source.
e) Upon reopening or renewal of the FESOP for any participating source or
new participating source, any multiple season transfer agreement, as
provided in Section 205.630(a)(2)(B) of this Part, that has three or more
years of transfers remaining shall be identified in the renewed or reissued
FESOP for such source.
f) Upon reopening or renewal of the FESOP for any participating source or
new participating source, any ATUs that will be issued by the Agency for
three years or more to any such source pursuant to Section 205.410,
205.500 or 205.510 of this Part shall be identified in the renewed or
reissued FESOP for such source.
(Source: Added at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.318
Certification for Exempt CAAPP Sources
The owner or operator of any source that is located in the Chicago area that is required to
obtain a CAAPP permit, and has seasonal emissions, as determined in accordance with
Section 205.320(a) of this Subpart, of less than 10 tons shall submit a written certification
to the Agency by March 1, 1998, certifying that its VOM emissions are below 10 tons per
season as specified in Section 205.320(a) of this Subpart. Such certification shall include
the amount of VOM emissions at the source during the 1994, 1995, 1996 and 1997
seasonal allotment periods, and supporting calculations.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.320
Baseline Emissions
a) Except as provided in subsection (b) or (c) of this Section, baseline
emissions shall be determined by the Agency in accordance with the
following, adjusted as specified in subsections (d), (e) and (f) of this
Section:
1) Baseline emissions shall be calculated using the average of the two
seasonal allotment periods with the highest VOM emissions during
1994, 1995 or 1996.
2) Any source may propose to substitute seasonal emissions on a
year-for-year basis due to non-representative conditions in 1994,
1995 or 1996, but must stay within the period from 1990 through
1997, and must have accurate seasonal emissions data for the
substitute year(s). When considering whether to substitute a
seasonal baseline emission year(s), the Agency must consider the
information submitted by the source pursuant to Section
205.310(b)(1)(B) of this Subpart, as well as the accuracy of that
data. For the purposes of this subsection (a)(2), “non-
representative conditions” include, but are not limited to, events
such as strikes, fires, floods and market conditions.
b) Except as provided below in subsection (c) of this Section, for any source
that has seasonal emissions of less than 10 tons, as determined in
accordance with subsection (a) of this Section, but becomes a participating
source because its seasonal emissions increase to 10 tons or more in any
seasonal allotment period beginning with 1999, baseline emissions shall
be determined by the Agency based on actual VOM emissions from the
first seasonal allotment period in which the source’s emissions equaled or
exceeded 10 tons, adjusted as specified in subsections (d), (e) and (f) of
this Section, provided such emissions increase is not a major modification
pursuant to 35 Ill. Adm. Code 203.
c) For any source that has seasonal emissions of less than 10 tons, as
determined in accordance with subsection (a) of this Section, but becomes
a participating source because its seasonal emissions increase to 10 tons or
more in any seasonal allotment period beginning with 1999 and this
emissions increase constitutes a major modification pursuant to 35 Ill.
Adm. Code 203, baseline emissions shall be determined by the Agency
based on the average of the actual seasonal emissions from the two
seasonal periods prior to a timely submittal of its application for the major
modification, adjusted as specified in subsections (d) and (e) of this
Section. Any such source may substitute seasonal emissions on a year-
for-year basis due to non-representative conditions in either of the two
seasonal allotment periods prior to submittal of its application for the
major modification but must stay within the five year period prior to
submittal of such application. For the purposes of this subsection, “non-
representative conditions” include, but are not limited to, conditions such
as strikes, fires, floods and market conditions.
d) The baseline emissions of any participating source shall be increased for
voluntary over-compliance that occurred after October 31, 1990 and
results in a VOM emissions level that is lower than the level required by
applicable requirements effective in 1996, including limitations in the
source’s permit(s) based on such applicable requirements. Voluntary
over-compliance shall be determined in accordance with the following:
1) Determine the actual activity or production types and levels from
the seasonal allotment period(s) selected for baseline emissions
pursuant to subsection (a), (b) or (c) of this Section;
2) Determine seasonal emissions for each emission unit as the
product of the amount of activity or production, as determined in
accordance with subsection (d)(1) of this Section, and the actual
emissions level;
3) Determine seasonal emissions for each emission unit as the
product of the amount of activity or production, as determined in
accordance with subsection (d)(1) of this Section, and the
allowable emissions level pursuant to all applicable requirements
effective through 1996, including limitations in the source’s
permit(s) based on such applicable requirements; and
4) Determine the appropriate adjustment to baseline emissions by
subtracting the seasonal emissions determined pursuant to
subsection (d)(2) of this Section from the seasonal emissions
determined pursuant to subsection (d)(3) of this Section.
e) The baseline emissions of any participating source shall be decreased if
any of the following circumstances exist:
1) If a source is out of compliance with any applicable requirements,
including limitations in the source’s permit(s) based on such
applicable requirements, in any of the seasonal allotment periods
used for baseline emissions, its baseline emissions shall be lowered
to reflect the amount of VOM emissions that would be achieved if
in compliance with such requirements.
2) If any of the seasonal allotment periods selected for baseline
emissions do not reflect compliance with requirements effective
through 1996 that became applicable after any of the years selected
as baseline years, the source’s baseline emissions shall be lowered
to reflect the amount of VOM emissions that would be achieved if
in compliance with such requirements.
3) If, in any of the years selected for baseline emissions, a source’s
VOM emissions are in excess of the amount of VOM emissions
allowed by applicable rules because it has been granted a variance,
has entered into a consent order, or is operating pursuant to a
CAAPP permit compliance schedule, the baseline emissions for
such source shall be lowered to reflect the VOM emissions amount
that would be achieved if in compliance with such requirements,
subject to the following:
A) Each such source shall be allowed to emit VOM emissions
in excess of the ATUs it holds at the end of the
reconciliation period each year until compliance with the
applicable regulation is achieved, or upon expiration of the
relief allowed for in the variance, consent order or CAAPP
permit compliance schedule, whichever occurs first;
B) Such excess VOM emissions shall be allowed to the extent
allowed in the variance, consent order or CAAPP permit
compliance schedule; and
C) The seasonal component of the Annual Emissions Report
for each such source shall be adjusted each year until
compliance with the applicable requirement(s) is achieved,
or upon expiration of the relief allowed for in the variance,
consent order or CAAPP permit compliance schedule,
whichever occurs first, as specified in subsection (e)(3)(B)
of this Section.
4) For any participating source that operated with excess emissions
during startup, malfunction or breakdown during any year used to
determine its baseline emissions, whether or not such operation
was authorized pursuant to the source’s permit, excess VOM
emissions attributable to startup, malfunction or breakdown shall
be excluded from the baseline emissions.
f) For new or modified emission units at a source for which a construction
permit was issued prior to January 1, 1998, but for which three years of
operational data is not available, the baseline emissions determination for
the source shall include VOM emissions from such new emission unit or
the increase in emissions from the modification of such emission unit
based on the two seasonal allotment periods with the highest VOM
emissions from the first three complete seasonal allotment periods in
which any such new or modified emission unit is operational. ATUs shall
only be issued in accordance with this subsection after the baseline
emissions has been determined. Any such source shall not be required to
hold ATUs for VOM emissions attributable to the new emission unit or
the modification of the existing emission unit for the first three complete
seasonal allotment periods in which it is operational.
g) For any source which acquired emission reduction credits pursuant to a
written agreement, entered into prior to January 1, 1998, and such
emission reduction credits were acquired for use as emissions offsets, in
accordance with 35 Ill. Adm. Code 203, such emission reduction credits,
adjusted for the seasonal allotment period, and reduced by 24 percent,
shall be included in the baseline emissions determination for the source,
only to the extent that:
1) The Agency has issued a federally enforceable permit, prior to
January 1, 1998, to the source from which the emission reduction
credits were acquired, and such federally enforceable permit
recognized the creation of the VOM emission reduction credits by
the cessation of all VOM-emitting activities and the withdrawal of
the operating permits for VOM-emitting activities at such other
sources; and
2) The Agency has not relied upon the emission reduction credits to
demonstrate attainment or reasonable further progress.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.330
Emissions Determination Methods
The owner or operator of a participating source or new participating source shall
determine VOM emissions from the source during the seasonal allotment period using
methods as necessary to demonstrate compliance with this Part. Such methods shall be,
at a minimum, as stringent as those required by any applicable requirement and any
permit condition. The Agency shall establish the emissions determination methods
applicable to each such source in the source’s CAAPP permit or FESOP. The following
methods, in conjunction with relevant source-specific throughput and operating data, are
acceptable methods a source may use to determine seasonal emissions, depending on the
type of emission unit:
a) Material balance calculation, based on the VOM content of raw materials
and recovered materials, as is typically used for degreasers, coating lines,
and printing lines equipped with a carbon adsorption system (recovery-
type control device) or without any control device;
b) A standard engineering formula for estimation of emissions, as is typically
used for storage and transfer of volatile organic liquids;
c) A source-specific emission factor(s), based on representative testing and
sampling data and appropriate analysis, as typically used for petroleum
refining processes;
d) A published USEPA emission factor(s), as is typically used for component
leaks;
e) A source-specific emission rate or VOM control efficiency, based on
representative testing, as is typically used for chemical processes and
afterburners (destruction-type control device), respectively;
f) A method not listed above that is sufficient to demonstrate compliance
with this Section; or
g) An appropriate combination of the above methods, as typically used for a
coating or printing line equipped with a control device, where the
available emissions are determined by material balance and the control
efficiency is determined by representative testing.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.335Sampling, Testing, Monitoring and Recordkeeping Practices
The owner or operator of a participating source or new participating source shall conduct
sampling, perform testing, conduct monitoring and maintain records as needed to support
its method for determining seasonal emissions in accordance with Section 205.330 of this
Subpart and to demonstrate compliance with this Part. Such sampling, testing,
monitoring and recordkeeping shall be, at a minimum, as stringent as that required by any
applicable requirement and any permit condition. The Agency shall establish the
practices applicable to each such source in the source’s CAAPP permit or FESOP.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.337 Changes in Emission Determination Methods and Sampling,
Testing, Monitoring and Recordkeeping Practices
a) The methods used for determining seasonal emissions from a source shall
generally be consistent with the methods used to determine its baseline
emissions unless the source's permit accommodates the use of alternate
methods to determine VOM emissions.
b) Modification of Methods and Practices
1) If a source proposes new or revised methods to determine VOM
emissions or new or revised supporting practices for sampling,
testing, monitoring or recordkeeping that differ significantly from
the methods and practices specified by its current permit, the
source shall obtain a revised CAAPP permit in accordance with the
procedures specified in Section 39.5 of the Act [415 ILCS 5/39.5],
or a revised FESOP, prior to relying on such methods and
practices.
2) The Agency shall issue a revised permit if it finds, based upon
submission of an appropriate permit application, that the proposed
methods or practices are needed or appropriate to address changes
in the operation of the source or emission units that were not
considered when the current permit was issued, that the proposed
methods and procedures will not significantly affect the
determination of actual seasonal emissions, or that the proposed
methods and procedures incorporate new or improved analytical
techniques or estimation methods that will increase the accuracy
with which actual seasonal emissions are determined, and other
applicable requirements for issuance of a revised permit are met.
3) If the Agency approves the use of a modified method or practice,
the Agency is authorized to determine a corrected baseline and
thereafter issue ATUs in accordance with Section 205.400(c) of
this Part pursuant to this corrected baseline.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
SUBPART D: SEASONAL EMISSIONS MANAGEMENT
Section 205.400 Seasonal Emissions Allotment
a) Each participating source shall receive an allotment which shall be issued
by the Agency and distributed in ATUs.
b) Except for ATUs issued pursuant to Sections 205.500 and 205.510 of this
Part, ATUs issued for any seasonal allotment period are valid for use
during the seasonal allotment period following issuance and the next
succeeding seasonal allotment period. All ATUs shall be valid until such
ATUs expire or are retired.
c) The initial allotment for each participating source shall be based on the
baseline emissions for such source, as determined in accordance with
Section 205.320 of this Part, and shall be reduced by 12 percent in 1999 or
in such other year that a source is issued its initial allotment, except as
provided in Section 205.405 of this Subpart.
d) Except as provided in Section 205.337(b)(3) of this Part and subsections
(c) and (e) of this Section, allotments shall remain at 1999 or initial levels
unless the Agency makes a demonstration to the Board, in accordance
with the rulemaking provisions of Sections 9.8, 27 and 28 of the Act [415
ILCS 5/9.8, 27 and 28], that further reductions are needed. An allotment
or a baseline under this Part does not constitute a property right. Nothing
in this Part shall be construed to limit the authority of the Board to
terminate or limit such allotment or baseline pursuant to its rulemaking
authority under Sections 9.8, 27 and 28 of the Act [415 ILCS 5/9.8, 27 and
28].
e) If the baseline emissions for any participating source are increased in
accordance with Section 205.320(f) of this Part, the allotment shall be
increased by the modified portion of the baseline emissions amount,
reduced by 12 percent, except as provided in Section 205.405 of this
Subpart.
f) Except as provided in subsection (h) of this Section, any new participating
source shall not be issued ATUs by the Agency, but shall be required to
hold ATUs at the end of the reconciliation period as specified in Section
205.150(d) of this Part.
g) Any source existing as of May 1, 1999, which first becomes subject to the
requirements of this Part because its seasonal emissions increase to 10
tons or more as a result of a major modification pursuant to 35 Ill. Adm.
Code 203, in any seasonal allotment period beginning with 1999, shall not
be allotted ATUs by the Agency for the VOM emissions attributable to
this modification, except as provided in subsection (h) of this Section, but
shall be allotted ATUs by the Agency based on its baseline emissions, as
determined in accordance with Section 205.320 of this Part. Any such
participating source shall be required to hold ATUs at the end of the
reconciliation period as specified in Section 205.150(c) of this Part, for
each seasonal allotment period in which it is subject to this Part.
h) If a participating source or new participating source submits an ATU
transfer agreement authorizing the transfer of ATUs for more than one
year, as provided in Section 205.630(a)(2)(B) of this Part, the ATUs shall
be automatically transferred by the Agency from the transferor’s
Transaction Account to the transferee’s Transaction Account. Upon
reopening or renewal of the CAAPP permit or FESOP for any such
source, any multiple season transfer agreement that has three or more
years of transfers remaining shall be identified in the renewed or reissued
CAAPP permit or FESOP for each such source.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.405 Exclusions from Further Reductions
a) VOM emissions from the following emission units, if satisfying
subsection (a)(1), (a)(2) or (a)(3) of this Section prior to May 1, 1999,
shall be excluded from the VOM emissions reductions requirements
specified in Section 205.400(c) and (e) of this Subpart as long as such
emission units continue to satisfy subsection (a)(1), (a)(2) or (a)(3) of this
Section:
1) Emission units that comply with any NESHAP or MACT standard
promulgated pursuant to the CAA;
2) Direct combustion emission units designed and used for comfort
heating purposes, fuel combustion emission units and internal
combustion engines; and
3) An emission unit for which a LAER demonstration has been
approved by the Agency on or after November 15, 1990.
b) When it is determined that an emission unit is using, prior to May 1, 1999,
BAT for controlling VOM emissions, VOM emissions from such emission
unit shall not be subject to the VOM emissions reductions requirement
specified in Section 205.400(c) or (e) of this Subpart as long as such
emission unit continues to use such BAT. The owner or operator of a
source may request such exclusion from further reductions by providing
the following information, in addition to the information required in
Section 205.310 of this Part, in its ERMS application:
1) Identification of each emission unit for which exclusion is
requested, including the year of initial operation of such emission
unit;
2) Identification of all requirements applicable to the emission unit;
3) A demonstration that the emission unit is using BAT for
controlling VOM emissions;
4) Identification of the permitted VOM emissions from the emission
unit;
5) VOM emissions from the emission unit for each seasonal allotment
period used in the baseline emissions determination for the source;
and
6) A description and quantification of any reductions in VOM
emissions that were achieved at the emission unit or source based
on its use of BAT.
c) As part of its review of an ERMS application or application for a modified
allotment, the Agency may determine that any such emission unit qualifies
for exclusion from further reductions under subsection (a) or (b) of this
Section. The Agency shall make its proposed determination in a draft
CAAPP permit or FESOP subject to public notice and participation,
accompanied by an explanation of its proposed action.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.410 Participating Source Shutdowns
a) If a participating source shuts down all operations at the source, and
withdraws its permit or its permit is revoked or terminates, allotments
issued to such a source for each seasonal allotment period after the
shutdown occurred shall be subject to the following:
1) 80 percent of all such ATUs shall continue to be allotted to the
owner or operator of such source or its duly authorized recipient;
and
2) 20 percent of all such ATUs shall be issued to the ACMA.
b) Except as provided in subsection (c) of this Section, the owner or operator
of any participating source that shuts down all operations, in accordance
with subsection (a) of this Section, shall submit a written request to have
its status changed to a general participant, upon withdrawal, revocation or
termination of its permit.
c) The owner or operator of any participating source that shuts down all
operations, in accordance with subsection (a) of this Section, may
authorize the issuance of future ATUs to the Transaction Account of
another participating source, new participating source or general
participant by submitting a transfer agreement authorizing a permanent
transfer of all future ATUs. The CAAPP permit or FESOP of any
participating source or new participating source designated to receive
future allotments of ATUs pursuant to such a transfer agreement shall be
modified to reflect this transfer upon reopening or renewal. Any ATUs
issued pursuant to a transfer agreement entered into under this subsection
before shut down of all operations of the participating source shall not be
subject to subsection (a) of this Section.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
SUBPART E: ALTERNATIVE ATU GENERATION
Section 205.500 Emissions Reduction Generator
Any participating source, new participating source or general participant may submit a
proposal for issuance of ATUs to it based on VOM emissions reductions, as specified in
subsection (a) of this Section, achieved by any source or group of sources located in the
Chicago area with an operating permit(s) other than a participating source or new
participating source. The owner or operator of each source from which the VOM
emissions reductions have been or will be achieved shall certify its acceptance of the
terms of the proposal and that it has achieved or will achieve the emissions reductions
specified in the proposal. An emissions reduction generator may apply for a modification
to its operating permit to incorporate limitations that make the VOM emissions
reductions specified in the relevant proposal enforceable.
a) ATUs will only be issued pursuant to this Section if based on actual VOM
emissions reductions that meet one or more of the following:
1) If, based on the same actual production rate, VOM emissions at the
source for any seasonal allotment period beginning in 1999 are or
will be lower due to the use of technology or materials at the
source than if operating at the same production rate at the
emissions level allowed by applicable requirements effective in
1996 or any requirements included in the State Implementation
Plan, provided such reductions occurred after 1990;
2) The source shuts down a portion or all of its operation(s) after
1996 and withdraws the relevant operating permit(s), provided the
VOM emissions from the shut down activity or activities will not
be distributed elsewhere within the Chicago area;
3) The source(s) curtails its seasonal production activity resulting in
an actual reduction in VOM emissions during any seasonal
allotment period beginning in 1999, provided the VOM emissions
from the curtailment will not be distributed elsewhere within the
Chicago area. Such emissions reduction shall be based on the
difference between the average production level for the two
seasonal allotment periods prior to the year of curtailment and the
curtailed production level, calculated at the VOM emission rate
allowed by applicable requirements effective in 1996; or
4) The source shuts down operations or curtails seasonal production
activity as described in subsections (a)(2) and (a)(3) of this
Section, respectively, and the VOM emissions from the shut down
activity or activities or curtailment will be distributed to a
participating or new participating source or sources within the
Chicago area, and the proposal provides that all ATUs issued
pursuant to this Section on account of such shut down or
curtailment are to be issued to the corresponding participating or
new participating source or sources.
b) If any proposal is based on a shut down of operations, as specified in
subsection (a)(2) of this Section, that results in seasonal emissions
reductions of 10 tons or more, 20 percent of ATUs issued based on such
an emissions reduction generator proposal shall be allocated to the
ACMA.
c) Any proposal based on seasonal emissions reductions of 10 tons or more
and the Agency’s approval thereof shall be subject to the public notice
requirements in accordance with the regulations governing CAAPP permit
or FESOP issuance.
d) Any proposal submitted shall include the following:
1) Information identifying the source(s) from which the VOM
emissions reductions has been or will be achieved and its owner or
operator;
2) An explanation of the method used to achieve the VOM emissions
reductions;
3) Relevant information describing the nature of the underlying
activity that generated the VOM emissions and the relationship of
the units at which the VOM emissions reduction occurred to other
units or sources performing the same or related activity in the
Chicago area, if the VOM emissions reduction is attributable to a
partial or complete source shutdown or a production curtailment,
as specified in subsection (a)(2), (a)(3) or (a)(4) of this Section;
4) The amount of VOM emissions for the two seasonal allotment
periods prior to the year(s) of curtailment, including supporting
calculations, if the VOM emissions reduction is attributable to a
production curtailment as specified in subsection (a)(3) or (a)(4) of
this Section;
5) The amount of the VOM emissions reduction, including supporting
calculations and documentation, such as material usage
information;
6) The name and address of the participating source(s), new
participating source(s) or general participant(s) to which ATUs
will be issued, including the name and telephone number of the
account officer for such source or participant; and
7) The owner or operator of each proposed emission reduction
generator shall certify its acceptance of the terms of the proposal
and certify that it has achieved or will achieve the emissions
reductions specified in the proposal.
e) The owner or operator of any emissions reduction generator may modify
its operating permit to incorporate limitations that make the VOM
emissions reductions specified in the relevant proposal enforceable.
f) If the emissions reduction generator does not modify its permit, as
specified in subsection (e) of this Section, or experiences a shutdown, as
specified in subsection (a)(2) or (a)(4) of this Section, and the proposal is
submitted prior to the availability of actual VOM emissions data from the
relevant seasonal allotment period, the Agency shall determine if the
proposal is acceptable on a preliminary basis and provide notification of
this determination. The Agency shall not issue final approval, in
accordance with subsection (g) of this Section, of any such proposal until
the actual VOM emissions data is submitted.
g) The Agency shall notify the participating source, new participating source
or general participant in writing of its final decision with respect to the
proposal within 45 days after receipt of such proposal or receipt of VOM
emissions data to verify that the specified reductions occurred, whichever
occurs later. If the Agency denies or conditionally approves a proposal,
this written notice shall include a statement of the specific reasons for
denying or modifying the proposal. The Agency’s determination as to the
approvability of any proposal submitted pursuant to this Section is subject
to review by the Board as provided at 35 Ill. Adm. Code 105.102,
provided the proposed emissions reduction generator is not requesting a
permit revision. If such a permit revision is requested, the applicable
permit review and appeal procedures shall apply.
h) If the Agency deems that the proposal is sufficient to receive final
approval, the Agency shall issue ATUs in accordance with the following:
1) Any ATUs issued pursuant to this subsection shall be issued to the
participating source(s), new participating source(s) or general
participant identified in the proposal;
2) If the emissions reduction generator modifies its operating permit
as specified in subsection (e) of this Section, to incorporate
limitations that make the VOM emissions reductions specified in
the relevant proposal enforceable, ATUs shall be issued on the
date such source is required to comply with the limitations in the
permit and for each seasonal allotment period thereafter in which
the VOM emissions reductions are required by the source’s permit;
3) If the proposal is based on a partial or complete shut down, as
specified in subsection (a)(2) or (a)(4) of this Section, ATUs shall
be issued before the seasonal allotment period for each year
specified in the proposal;
4) If the emissions reduction generator does not modify its permit and
the proposal is submitted prior to the availability of actual VOM
emissions data from the relevant seasonal allotment period(s), the
Agency shall issue ATUs upon final approval which shall occur
after actual VOM emissions data is evaluated for the relevant
seasonal allotment period;
5) If the emissions reduction generator includes information on actual
VOM emissions reductions during the seasonal allotment period
for which ATUs are sought, ATUs will be issued by the Agency
upon final approval of the proposal;
6) Except as provided in subsection (h)(7) of this Section, ATUs
issued pursuant to this subsection shall only be valid for the
seasonal allotment period in which the emissions reductions were
achieved;
7) If the VOM emissions reductions specified in a proposal are
incorporated into the emissions reduction generator’s permit or, if
the emissions reduction generator shuts down all or a portion of its
operations and withdraws all relevant operating permits, ATUs
issued pursuant to this subsection shall be valid for the seasonal
allotment period following issuance and for the next seasonal
allotment period; and
8) The number of ATUs issued pursuant to subsection (h)(2) or (h)(3)
of this Section based on a proposal under subsection (a)(4) of this
Section shall be equal to the number of ATUs otherwise issuable
under this Section reduced by 12 percent.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.510
Inter-Sector Transaction
Any person may submit a proposal to the Agency to have ATUs issued to the Transaction
Account of a participating source, new participating source or general participant
equivalent to VOM emissions reductions from mobile sources or area sources in the
Chicago area. Any such proposal for the VOM emissions reduction project is subject to
Agency review and approval, shall be consistent with laws and regulations and shall
include all supporting documentation. The Agency shall review all such proposals in
accordance with the following:
a) Regulatory Based Proposal
If the VOM emission reductions that have been generated or will be
generated are pursuant to a regulation that provides the procedure to
determine VOM emissions reductions and allows for such reductions to be
converted to ATUs, the Agency shall approve the proposal if based on the
provisions of the applicable regulation. The Agency shall approve,
conditionally approve or deny any complete and adequately supported
proposal within 45 days after the Agency's receipt thereof by sending
written notification of its decision. If the Agency denies or conditionally
approves a proposal, this written notice shall include a statement of the
specific reasons for denying or modifying the proposal.
b) Other Proposals
If the proposal is based on VOM emissions reductions that have been
generated or will be generated which are beyond VOM emissions
reductions required by any mandatory applicable rules, the proposal shall
include an explanation of the method(s) used to achieve the VOM
emissions reductions and the method(s) used to quantify the VOM
emissions reductions, including supporting documentation and
calculations. The Agency shall evaluate the validity of VOM emission
reductions that allegedly were generated or will be generated and approve,
conditionally approve or deny any complete proposal within 90 days after
the Agency's receipt by sending written notification of its decision to the
source. If the Agency denies or conditionally approves a proposal, this
written notice shall include a statement of the specific reasons for denying
or modifying the proposal.
c) No ATUs shall be issued based on mobile or area source VOM emissions
reductions unless a proposal, in accordance with this Section, has been
approved by the Agency.
d) All ATUs issued pursuant to a proposal approved pursuant to this Section
shall be issued to the Transaction Account identified in the proposal.
Such ATUs shall only be valid for the seasonal allotment period in which
the emissions reductions were achieved, unless the Agency specifies in its
approval that such ATUs shall be valid for the seasonal allotment period
following issuance and for the next seasonal allotment period.
e) The Agency’s determination that a proposal submitted pursuant to this
Section is denied or conditionally approved is subject to review by the
Board as provided at 35 Ill. Adm. Code 105.102.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
SUBPART F: MARKET TRANSACTIONS
Section 205.600 ERMS Database
a) The Agency or its designee shall maintain a bulletin board that shall be
available for public access on which a listing of the status of ATUs will be
posted. Other public information and notices will also be posted and
participating sources, new participating sources and general participants
may post ATUs available for purchase or wanted for purchase. The
bulletin board shall include the following information on ATUs:
1) Date issued and source issued to;
2) Where applicable, date transferred and source or person transferred
to;
3) Status of ATUs in each account, i.e., available for use, or date
retired or date expired; and
4) Posted each week during the reconciliation period and no less than
monthly at all other times, the average price paid for ATUs
transferred the previous week or the previous month, as
appropriate.
b) The Agency or its designee shall maintain a Transaction Account
database. Information contained on this database shall be considered the
official record of the ERMS. Account officer(s) may request status
updates for accounts for which they are designated. The database shall
include information on all ATUs held in each account.
c) The Agency or its designee shall separately maintain a listing of all ATUs
expired or retired within the most recent five years, including the date of
expiration or retirement.
Section 205.610 Application for Transaction Account
a) Each participating source, new participating source and general participant
shall apply for and obtain authorization for a Transaction Account from
the Agency prior to conducting any market transactions. Each
participating source shall submit to the Agency its completed application
for a Transaction Account no later than 30 days prior to the beginning of
the first seasonal allotment period in which the source is required to
participate. Each new participating source shall submit to the Agency its
completed application for a Transaction Account no later than 30 days
prior to the beginning of the first seasonal allotment period in which it is
operational.
b) Each Transaction Account application shall include the following
information:
1) The name and address of the participating source, new
participating source or general participant, and the name and
address of its owner or operator;
2) The names and addresses of all designated account officers;
3) The certification specified in Section 205.620(a)(5) of this Subpart
signed by each account officer; and
4) For a participating source or new participating source,
identification of the CAAPP permit or FESOP number for the
source.
c) Special Participants
Any person may purchase ATUs to retire for air quality benefit only.
Such person shall be a special participant and shall register with the
Agency prior to its first ATU purchase. Special participants will not have
Transaction Accounts in the Transaction Account database. All ATUs
purchased by special participants will be retired effective on the date of
purchase and will be listed as retired in the appropriate database.
d) Special participants will be given a registration number by the Agency so
that their purchases of ATUs can be recorded.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.620 Account Officer
a) Each participating source, new participating source or general participant
must have at least one account officer designated for each of its
Transaction Accounts. The account officer(s) shall be the only person(s)
authorized to make ATU transactions involving such designated
Transaction Account. At least one account officer must certify each
official document that pertains to a designated Transaction Account or
associated market transactions. Account officers may be employees or
contractors of participating sources, new participating sources or general
participants. No participating source, new participating source or general
participant may engage in ATU transactions if it does not have an account
officer approved by the Agency. Each account officer shall satisfy all of
the following:
1) Be at least 18 years of age;
2) Be an American citizen or a legal alien;
3) Have not been convicted of or had a final judgment entered against
him or her in any State or federal court for a violation of State or
federal air pollution laws or regulations, or for fraud;
4) Be scheduled to attend the next scheduled training program or has
already completed the program; and
5) Certify to the following statement as a part of the relevant
Transaction Account application:
I certify that I satisfy all of the requirements for an account officer.
I am aware that I may be disqualified from acting as an account
officer in the State of Illinois, pursuant to 35 Ill. Adm. Code 205, if
any information submitted in this application is determined to be
false or misleading.
b) Account Officer Training Program
Except as provided in subsection (d) of this Section, each candidate must
satisfactorily complete the training program for account officers
conducted by the Agency or its designee prior to acting as an account
officer.
1) To attend the account officer training program, a person must
enroll with the Agency prior to the date for the next scheduled
training program.
2) The training program shall cover, at a minimum, the following
topics: an overview of the ERMS, forms for the ERMS, market
transaction procedures, and operation of the ERMS databases.
3) The account officer training program will be offered at least once
annually, and may be offered more frequently, depending upon
demand. The Agency or its designee shall publish advance notice
of the time, date and location for each training program.
c) Disclaimer
The Agency and the State of Illinois do not endorse or guarantee the
conduct or quality of work by account officers who have been approved
by the Agency, nor does it endorse or guarantee the validity of any
representations or ERMS market transactions offered or made by account
officers who have been approved by the Agency.
d) Expedited Approval of Account Officer
In the event that an account officer unexpectedly leaves that position, the
participating source, new participating source or general participant may
request permission from the Agency to allow for a new account officer for
up to one year, provided the participating source, new participating
source or general participant submits a written certification in accordance
with subsection (a)(5) of this Section and affirms that the candidate for
expedited approval by the Agency shall complete the training program, in
accordance with subsection (b) of this Section, no later than one year from
the date the expedited approval is requested.
Section 205.630 ATU Transaction Procedures
Recognized sales and purchases of ATUs may be made between any two Transaction
Accounts or from a Transaction Account to the ACMA. A sale of ATUs may also be
made from a Transaction Account to a special participant. No sale of ATUs shall be
recognized from a special participant to any other person.
a) Transfer of ATUs shall be subject to the following requirements:
1) Transfers between Transaction Accounts may only be made by the
account officers for both accounts;
2) All ATU transfers shall be duly authorized by the account officers
for both Transaction Accounts, or, if the ATUs are being
transferred to a special participant, the account officer of the
Transaction Account of the transferor and a representative of the
special participant;
A) Duly authorized ATU transfers shall identify the ATU(s)
involved in the transaction;
B) Written ATU transfer agreements signed by the account
officers for both Transaction Accounts may authorize the
transfer of ATUs for more than one season. If a transfer
agreement authorizes the future transfer of ATUs for any
season for which ATUs have not yet been issued for use,
the ATUs shall be automatically transferred to the buyer’s
Transaction Account for each year such transfer is
authorized pursuant to the transfer agreement, in which
case the account officers for each Transaction Account will
be notified of this transfer;
3) No transfer shall be considered official for purposes of the ERMS
until entered into the Transaction Account database;
4) The Agency or its designee shall enter ATU transfers into the
Transaction Account database within one week of the Agency
receiving notification of a duly authorized ATU transfer; and
5) Any ATU transfer agreements entered into after December 31 of a
given year may not be used by the buyer to cover emissions from
the preceding seasonal allotment period, but may only be used
prospectively.
b) The account officers involved in ATU transfers shall report the purchase
price for all ATU transfers to the Agency or its designee and shall indicate
whether consideration other than the purchase price reported was involved
in the transfer.
c) Transaction Requirements
1) Expired or retired ATUs may not be bought or sold;
2) The Transaction Account database must show ATUs proposed for
transfer as being held by the selling entity. After such transfer is
official as specified in subsection (a)(3) of this Section, the
transferee’s Transaction Account will show the ATUs subject to
such transfer as being held in this Transaction Account;
3) The minimum sale allowed under the ERMS shall be one ATU;
and
4) No sale may include partial ATUs.
d) Official Record of Transactions
1) The official record of all ATU transactions and the current status
of all ATUs shall be the Transaction Account database.
2) Account officers shall be allowed to inspect their Transaction
Account(s) in the Transaction Account database. Any
discrepancies found by the account officer shall be reported to the
Agency or its designee along with a request for correction. All
data supporting such request shall be sent along with the request
for correction. A request for correction may not be used to alter an
allotment.
3) After the end of each reconciliation period, the Agency shall retire
ATUs in the Transaction Account of each participating source or
new participating source in the amount specified in Section
205.150(c) or (d) of this Part. If the source does not have
sufficient ATUs in its Transaction Account to account for its VOM
emissions from the preceding seasonal allotment period, the source
shall be subject to emissions excursion compensation in
accordance with Section 205.720 of this Part. ATUs shall be
retired in order of issuance, unless the account officer for the
Transaction Account notifies the Agency in writing to specify
which ATUs in the Transaction Account should be retired.
SUBPART G: PERFORMANCE ACCOUNTABILITY
Section 205.700
Compliance Accounting
a) The owner or operator of each participating source or new participating
source shall maintain and retain for five years at the source or at another
location agreed to by the Agency, in conjunction with the records it
maintains to demonstrate compliance with its CAAPP permit or FESOP,
all of the following documents as its compliance master file:
1) A copy of its seasonal component of its Annual Emissions Report;
2) Information on actual VOM emissions, as recorded in accordance
with Section 205.335 of this Part, and as required by the CAAPP
permit or FESOP for the source; and
3) Copies of any transfer agreements for the purchase or sale of
ATUs and other documentation associated with the transfer of
ATUs.
b) Compliance Master File Review
1) The owner or operator of each participating source or new
participating source shall allow the Agency or an authorized
representative to enter and inspect the premises as described by
Section 39.5(7)(p)(ii) of the Act [415 ILCS 5/39.5(7)(p)(ii)] and to
review its compliance master file.
2) After the conclusion of each compliance master file review, a
report shall be prepared by the Agency and issued to the inspected
source that includes the following information:
A) An identification of any noncompliance with the
requirements of his Part; and
B) An evaluation of increases and decreases in seasonal
emissions of VOMs that are also hazardous air pollutants,
as related to ATU transactions.
3) Nothing in this Part shall affect any other obligations of a source to
allow inspection(s) under State or federal laws or regulations.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.710 Alternative Compliance Market Account (ACMA)
a) The Agency or its designee shall operate the ACMA. The purpose of the
ACMA is to serve as a secondary source of ATUs that may be purchased
by participating sources and new participating sources, as specified in this
Section.
b) The ATUs in the ACMA will have an indefinite life so long as they
remain in the ACMA, but, once purchased, must be used either for the
preceding or next seasonal allotment period. If these ATUs are not used
for compliance in that seasonal allotment period, they will expire.
c) ATUs in an amount equal to one percent of each year’s allotment shall be
issued to the ACMA, beginning in 1999. In addition, ATUs shall be
deposited into the ACMA due to source shutdowns, as specified in
Sections 205.410(a) and 205.500(b) of this Part. ATUs for the ACMA
may also be obtained by the Agency in the following ways:
1) The Agency or its designee is authorized to accept voluntary
contributions of ATUs from participating sources or other persons
for deposit into the ACMA.
2) The Agency is authorized to deposit ATUs from its purchase of
ATUs or to deposit ATUs created from emissions reductions it
generates beyond reductions otherwise required by statute or
regulation for attainment of the NAAQS for ozone.
d) Regular Access to ACMA
1) Regular access to the ACMA shall be available when there is
sufficient positive balance of ATUs to supply the requesting
source. Any participating source or new participating source may
apply to the Agency during the reconciliation period for regular
access to the ACMA to purchase ATUs for the preceding seasonal
allotment period.
2) Within 15 days after receipt of any request for regular access to the
ACMA, the Agency shall notify the source if regular access to the
ACMA is available or if there are insufficient ATUs in the ACMA
for regular access. The Agency shall also advise any participating
source that special access is available when regular access is
unavailable.
3) After being granted regular access to the ACMA by the Agency, a
participating source or new participating source may purchase
ATUs from the ACMA at the rate of $1,000 per ATU or 1.5 times
the average market price, as determined by the Agency, whichever
is less. ATUs shall only be available at 1.5 times the market price
if sufficient single season ATUs transfers have occurred with a
purchase price that fully reflects the consideration involved in the
transfer to establish an average market price. All payments for
ATUs from the ACMA shall be made to the Agency or the
Agency's designee for deposit into the Alternative Compliance
Market Account Fund.
e) Special Access to ACMA
Special access to the ACMA shall be available to participating sources, in
accordance with this subsection, when the ACMA balance is not sufficient
to meet the needs of requesting participating sources.
1) The Agency shall credit the ACMA with up to one percent of
ATUs from the seasonal allotment for the next seasonal allotment
period as an advance to provide assistance for special access to be
granted, as provided in subsection (e)(2) of this Section. Special
access to the ACMA shall only be allowed to the extent that such
access does not exceed this one percent of the next seasonal
allotment.
2) To the extent allowed pursuant to subsection (e)(1) of this Section,
the Agency shall grant special access to the ACMA to any
participating source if the source submits a written request
demonstrating that the following exist:
A) During the reconciliation period the source has not been
able to obtain regular access to the ACMA and has not
been able to obtain ATUs in the market; and
B) Actual seasonal emissions have exceeded ATUs held by
the source for the applicable seasonal allotment period.
3) After being granted special access to the ACMA, a participating
source may purchase ATUs at the rate of $1100 per ATU or 2
times the average market price, as determined by the Agency,
whichever is less. ATUs shall only be available at 2 times the
market price if sufficient single season ATUs transfers have
occurred with a purchase price that fully reflects the consideration
involved in the transfer to establish an average market price. All
payments for ATUs from the ACMA shall be made payable to the
Agency or the Agency’s designee for deposit into the Alternative
Compliance Market Account Fund.
4) The Agency shall provide written notification, within 15 days after
receipt of any request for special access to the ACMA, allowing or
denying special access to the ACMA to any participating source
requesting such access. If the Agency denies such access, this
written notification shall include its reasons for denying access.
f) Special access to the ACMA will create a need to generate sufficient
VOM emissions reductions during the subsequent calendar year to offset
the ATUs distributed; in this instance, the Agency shall:
1) Offset these ATUs by crediting any expired ATUs from the
Transaction Accounts of all ERMS participants to the ACMA after
the end of the reconciliation period;
2) Seek to achieve an equivalent amount of VOM emissions
reductions by the end of the subsequent year to offset these ATUs;
or
3) Credit the ACMA with the one percent of ATUs, as needed, from
the next seasonal allotment, as provided in subsection (e)(1) of this
Section.
g) The Agency is authorized to use moneys derived from the sale of ATUs
from the ACMA to develop and implement additional VOM emissions
reductions. If the ACMA is operating without a positive balance, the
Agency shall endeavor to generate new emissions reductions whenever
possible.
h) Limitations on Operation of ACMA
The ability of new participating sources to obtain ATUs from the ACMA
shall be limited through the seasonal allotment period of 2002, in the
aggregate, to no more than 30 percent of the available ACMA balance at
the start of each seasonal allotment period unless ATUs are available after
access by all participating sources. In such case, new participating
sources may obtain ATUs from the ACMA up to 50 percent of the
available ACMA balance at the start of each seasonal allotment period.
i) If the Agency denies special access to the ACMA to any participating
source, such source may petition the Board for review of the Agency’s
denial in accordance with the procedures specified at 35 Ill. Adm. Code
105.102.
Section 205.720 Emissions Excursion Compensation
The Agency shall obtain emissions excursion compensation from any participating
source or new participating source that does not hold ATUs in accordance with Section
205.150(c) or (d) of this Part by the conclusion of the reconciliation period. For any
emissions excursion during 1999 by a participating or new participating source that was
not issued a CAAPP permit before May 1, 1998, all references in subsections (b)(1) and
(b)(3), (c) and (e) of this Section to 1.2 times the emissions excursion shall be 1.0 times
the emissions excursion. The Agency shall obtain emissions excursion compensation
pursuant to the following procedures.
a) The Agency shall issue an Excursion Compensation Notice to any such
source when an apparent emissions excursion is identified by the Agency.
b) Except as provided in subsection (c) of this Section, the Excursion
Compensation Notice shall require the source to provide compensation in
the following manner:
1) The participating source or new participating source shall purchase
ATUs from the ACMA in an amount equivalent to 1.2 times the
emissions excursion;
2) For the second consecutive seasonal allotment period in which an
emissions excursion occurred, the participating source or new
participating source shall purchase ATUs from the ACMA in an
amount equivalent to 1.5 times the emissions excursion; or
3) If the ACMA balance is not adequate to cover 1.2 times or, when
required, 1.5 times the total emissions excursion amount, the
Agency shall deduct ATUs equivalent to 1.2 times or, when
required, 1.5 times the total emissions excursion or any remaining
portion thereof from the source's next allotment of ATUs.
c) Within 15 days after receipt of an Excursion Compensation Notice, the
owner or operator of the subject source may apply to the Agency to
request that ATUs in an amount equivalent to 1.2 times or, when required,
1.5 times the emissions excursion be deducted from the source's next
seasonal allotment, rather than acquired from the ACMA.
d) Any source issued an Excursion Compensation Notice may contest the
Agency's findings by filing a petition with the Board requesting review of
the Emissions Excursion Compensation Notice in accordance with the
procedures specified in 35 Ill. Adm. Code 105.102.
e) If any source contests the Agency's findings in the Excursion
Compensation Notice, the Agency shall withhold ATUs in an amount
equivalent to 1.2 times or, when required, 1.5 times the amount of the
alleged emissions excursion from the source's next seasonal allotment.
These ATUs shall be withheld until the Board issues a final order
resolving the source's petition contesting the Agency's Excursion
Compensation Notice. If the source prevails before the Board, the ATUs
withheld shall be transferred to the source's Transaction Account. If the
Agency prevails before the Board, the ATUs withheld shall be retired to
offset the emissions excursion.
f) Sources that provide emissions excursion compensation pursuant to this
Section shall not be subject to enforcement authority granted to the State
or any person under applicable State or federal laws or regulations or any
permit conditions. The enforcement authority of the State or any person is
only limited by this subsection as it applies to an emissions excursion.
Section 205.730
Excursion Reporting
Upon issuance of each Excursion Compensation Notice to any source that has already
had one previous admitted or adjudicated emissions excursion, the source shall submit to
the Agency any additional reports required by the source’s CAAPP permit or FESOP.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.740 Enforcement Authority
Except as provided in Section 205.720(f) of this Subpart, nothing in this Part limits the
State's authority to seek penalties and injunctive relief for any violation of any applicable
State law or regulation or any permit condition, as otherwise provided in the Act.
Nothing in this Part limits the right of the federal government or any person to directly
enforce against actions or omissions which constitute violations of permits required by
the Clean Air Act or applicable federal environmental laws and regulations.
Section 205.750
Emergency Conditions
VOM emissions that are a consequence of an emergency, and are in excess of the
technology-based emission rates which are achieved during normal operating conditions,
to the extent that such excess emissions are not caused by improperly designed
equipment, lack of preventative maintenance, careless or improper operation, or
operation error, shall be deducted from the calculation of actual VOM emissions during
the seasonal allotment period in which the emergency occurred, subject to the following:
a) The owner or operator of the participating source or new participating
source shall submit an initial emergency conditions report to the Agency
within two days after the time when such excess emissions occurred due
to the emergency. The submittal of this initial emergency conditions
report shall be sufficient to fulfill the notice requirements of Section
39.5(7)(k) of the Act [415 ILCS 5/39.5(7)(k)] as it relates to VOM
emissions at the source if the report provides a detailed description of the
emergency, any steps taken to mitigate emissions and corrective actions
taken, to the extent practicable. The final report shall contain the
following information:
1) A description of the cause(s) of the emergency and the duration of
the episode;
2) Verification that the source was being operated properly at the
time of the emergency;
3) A demonstration that the source took all reasonable steps to
minimize excess VOM emissions during the emergency period,
including but not limited to the following actions, if technically
and economically feasible:
A) The level of operation of the affected emission unit(s) was
minimized;
B) The level of emissions from the affected emission units(s)
was minimized by use of alternative raw materials or
alternative control measures;
C) The duration of the excess emissions was minimized; and
D) The amount of VOM emissions from other emission units at the source or
other sources located in the Chicago area owned or operated by the person
or entity were reduced;
4) A demonstration that appropriate corrective action(s) were taken
promptly;
5) A demonstration that the affected emission units were:
A) Being carefully and properly operated at the time of the
emergency, including copies of appropriate records and
other relevant evidence;
B) Properly designed; and
C) Properly maintained with appropriate preventative
maintenance; and
6) An estimate of the amount of VOM emissions that occurred during
the emergency in excess of the technology-based emission factor
achieved during normal operating conditions, including supporting
data, the relevant emissions factor, and calculations.
b) The owner or operator of any such source may supplement its initial
emergency conditions report within 10 days after the conclusion of the
emergency situation. If an initial emergency conditions report is not
supplemented, such report is deemed the final emergency conditions
report. If, however, an initial emergency conditions report is
supplemented, the combination of such initial report plus the supplemental
information is deemed the final emergency conditions report.
c) The Agency must approve, conditionally approve or reject the findings in
the final emergency conditions report, submitted by the source, in writing
within 45 days after receipt of the initial emergency conditions report,
subject to the following:
1) If the Agency concurs with the emergency conditions report, the
source is not required to hold ATUs for the excess VOM emissions
attributable to the emergency;
2) If the Agency approves with conditions or rejects the emergency
conditions report, the source shall be required to hold ATUs by the
end of the reconciliation period in an amount not less than the
emissions identified as excess in the emergency conditions report
or provide emissions excursion compensation in accordance with
Section 205.720 of this Subpart, if an emissions excursion
occurred;
3) If the Agency approves with conditions an emergency conditions
report, the Agency must identify in its written notice the amount of
VOM emissions that are not attributable to an emergency; and
4) If the Agency approves with conditions or rejects a source’s
emergency conditions report, the source may raise the emergency
as an affirmative defense pursuant to Section 39.5(7)(k) of the Act
[415 ILCS 5/39.5(7)(k)] in any action brought for noncompliance
with this Part or an action brought to review the Agency’s issuance
of an Excursion Compensation Notice, as provided in Section
205.720(d) of this Subpart.
d) Nothing in this Section relieves any source of any obligation to comply
with other applicable requirements, permit conditions, or other provisions
addressing emergency situations.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)
Section 205.760 Market System Review Procedures
Beginning in 2000, the Agency shall prepare an Annual Performance Review Report that
addresses the effect of VOM emissions reductions in the Chicago area on progress
toward meeting the RFP requirements and achieving attainment of the NAAQS for ozone
by 2007.
a) The Annual Performance Review Report will review trends and patterns
which may have emerged in the operation of the ERMS, and shall include,
but not be limited to, the following:
1) Total aggregate VOM emissions during the previous seasonal
allotment period;
2) The number of ATUs retired for compliance purposes or for air
quality benefit, currently being banked, or used by new
participating sources for the previous seasonal allotment period;
3) An evaluation of trading activities, including sources with no
trading activity, sources that are net purchasers of ATUs and
sources that are net sellers of ATUs;
4) ACMA transactions since the preparation of the previous report
and the account balance;
5) A summary of emissions reduction generator and inter-sector
proposals;
6) Distribution of transactions by geographic area or character of
source;
7) Availability of ATUs for purchase;
8) The average market price for ATU transactions from the previous
seasonal allotment period; and
9) Trends and spatial distributions of hazardous air pollutants.
b) The Agency shall prepare the Report by June 30 of the year following the
seasonal allotment period addressed by the Report. The Agency will
make copies of its Report available to interested parties upon request.
(Source: Amended at 29 Ill. Reg. 8848, effective June 13, 2005)