2

United States. The Illinois General Assembly has found that an emissions trading

program is a cost-effective means of reducing NOx emissions (415 ILCS 5/9.9(a)(3)

(1998) (1998 State Bar Edition, 1999 Supp.), and directed the Board to adopt

regulations implementing such a program (415 ILCS 5/9.9(b) and (d) (1998) (1998

State Bar Edition, 1999 Supp.)). The Board’s action today is in response to that

directive.

2

PROCEDURAL HISTORY

The Illinois Environmental Protection Agency (Agency) filed this rulemaking

proposal with the Board on October 16, 2000. The Board adopted the rules as

proposed by the Agency for first notice on October 19, 2000. See Proposed New 35

Ill. Adm. Code 217.Subpart U, NOx Control And Trading Program For Specified NOx

Generating Units, Subpart X, Voluntary NOx Emissions Reduction Program, and

Amendments to 35 Ill. Adm. Code 211 (October 19, 2000), R01-17. The Secretary of

State published the first-notice rules in the

Illinois Register

on November 13, 2000 (45

Ill. Reg. 16,452, 16,467).

The Board held public hearings in this matter in Chicago, Illinois, on November

29, 2000, and December 20, 2000, before Board Hearing Officer Bobb Beauchamp and

Board Member Marili McFawn.

3 The hearings were scheduled and conducted in

accordance with Section 28.5 of the Act (415 ILCS 5/28.5 (1998)). Section 28.5

provides for “fast-track” adoption of certain regulations necessary for compliance with

the Clean Air Act Amendments of 1990 (CAAA) (42 U.S.C. § 7401

et seq

. (1990)).

The Agency presented a number of witnesses to testify and answer questions on

behalf of this proposal. Additionally, several members of the regulated community also

presented testimony at the hearings: the Illinois Environmental Regulatory Group

(IERG); the University of Illinois (the University); and LTV Steel.

Section 27(b) of the Act requires the Board to request that the Department of

Commerce and Community Affairs (DCCA) conduct a study of the economic impact of

any proposed rules, and to conduct at least one public hearing on the economic impact

of those proposed rules (415 ILCS 5/27(b) (1998)). The Board requested DCCA

conduct such a study in an October 26, 2000 letter. At the December 20, 2000 hearing

the Board hearing officer stated that the Board would rely on a March 10, 2000 DCCA

2 For a more complete discussion of the federal and State activity regarding this

rulemaking, see the Board’s second-notice opinion and order. Proposed New 35 Ill.

Adm. Code 217.Subpart U, NOx Control and Trading Program for Specified NOx

Generating Units, Subpart X, Voluntary NOx Emissions Reduction Program, and

Amendments to 35 Ill. Adm. Code 211 (February 15, 2001), R01-17.

3 The transcripts of the hearing will be cited as “Tr.1 at ___” and “Tr.2 at ___.” The

exhibits will be referred to as “Exh. ___ at __.”

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3

letter stating that DCCA would not conduct economic impact studies on rules pending

before the Board. Tr.2 at 10. The Board hearing officer asked for, but did not

receive, any comments on the economic impact of these rules.

Id

.

The record in this matter closed on January 9, 2001, as required by Section

28.5(l) of the Act (415 ILCS 5/28.5(l) (1998)). The Board received four timely filed

public comments: the Agency (PC 1), LTV Steel Company (PC 2), the University of

Illinois (PC 3), and Clean Air Action (PC 4). On January 10, 2001, the Illinois

Environmental Regulatory Group (PC 5) and Archer Daniels Midland Company (PC 6)

filed public comments.

On February 15, 2001, the Board adopted its second-notice opinion and order,

and sent this matter to the Joint Committee on Administrative Rules (JCAR) for its

consideration. See Proposed New 35 Ill. Adm. Code 217.Subpart U, NOx Control and

Trading Program for Specified NOx Generating Units, Subpart X, Voluntary NOx

Emissions Reduction Program, and Amendments to 35 Ill. Adm. Code 211 (February

15, 2001), R01-17. JCAR requested, and the Board agreed to, several minor changes

to the rules proposed at second notice. JCAR then considered the proposed rules at its

March 20, 2001 meeting, asked a few clarifying questions, and voted no objection.

NITROGEN OXIDES TRADING SYSTEM

The Illinois General Assembly in 1999 adopted new Section 9.9 of the Act titled

“Nitrogen oxides trading system”

4 (415 ILCS 5/9.9 (1998 State Bar Edition, 1999

Supp.)). In Section 9.9 the General Assembly finds “[t]hat reducing emissions of NOx

in the State helps the State to meet the national ambient air quality standard for ozone .

. . . .” (415 ILCS 5/9.9(a)(2) (1998 State Bar Edition, 1999 Supp.)) and “[t]hat

emissions trading is a cost effective means of obtaining reductions of NOx emissions”

(415 ILCS 5/9.9(a)(3) (1998 State Bar Edition, 1999 Supp.)). Further, Section 9.9

directs that “the Board shall adopt regulations to implement an interstate NOx trading

program . . . as provided for in 40 CFR Part 96 . . . .” 415 ILCS 5/9.9(b) (1998 State

Bar Edition, 1999 Supp.). Part 96 is the portion of the NOx SIP Call that contains the

federal NOx emissions trading program.

Section 9.9(d) directs the Board to address specific issues in adopting

regulations to implement the NOx Trading Program. Section 9.9(d), in pertinent part,

mandates that the Board:

1. assure that the economic impact and technical feasibility of NOx

emissions reductions under the NOx Trading Program are

4 On August 19, 1999, Governor Ryan signed Section 9.9 into law as Pub. Act 91-

0631.

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4

considered relative to the traditional regulatory control

requirements in the State for EGUs and non-EGUs;

2. provide that emission units, as defined in Section 39.5(1) of this

Act, may opt into the NOx Trading Program;

3. provide for voluntary reductions of NOx emissions from emission

units, as defined in Section 39.5(1) of this Act, not otherwise

included under paragraph (c) or (d)(2) of this Section to provide

additional allowances to EGUs and non-EGUs to be allocated by

the Agency. The regulations shall further provide that such

voluntary reductions are verifiable, quantifiable, permanent, and

federally enforceable;

4. provide that the Agency allocate to non-EGUs allowances that are

designated in the rule, unless the Agency has been directed to transfer

the allocations to another unit subject to the requirements of the NOx

Trading Program, and that upon shutdown of a non-EGU, the unit may

transfer or sell the NOx allowances that are allocated to such unit. 415

ILCS 5/9.9(d) (1998 State Bar Edition, 1999 Supp.).

The Board has reviewed today’s rules, and finds that they comply with the

requirements of Section 9.9(d). Specifically, Subpart U satisfies the mandates of

Sections 9.9(d)(2) and (4). Subpart X provides the voluntary reduction program

required by Section 9.9(d)(3).

Subpart U

Introduction

Together, Subparts U and W compose Illinois’ portion of the federal NOx

trading program.

5 Subpart U applies to large non-EGU’s and Subpart W applies to

5 In submitting the NOx Trading Program as two separate rulemakings, the Agency

accommodated two different sets of NOx emitting sources. The traditional EGUs, those

that generate electricity for commercial sale, consented to an “updating allocation

system.” Tr.1 at 19. Under Subpart W, the allowances available for allocation are

gradually reduced, beginning in the fourth year of the program, and the number of

allowances allocated is not fixed. See 35 Ill. Adm. Code 217.764. The non-EGUs

objected to this allocation method. Tr.1 at 19. Units subject to the requirements of

Subpart U “needed to be able to rely on having allowances because they weren’t going

to be in the business of trading in the market [or] revising the boilers to use low NOx

burners . . . .”

Id

. During negotiations with the Agency, the EGUs consented to the

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5

large EGUs. Both programs cap the total number of allowances the Agency may

allocate, and describe how the Agency will allocate those finite allowances.

Participation in the federal NOx trading program allows units subject to the

requirements of either Subparts U or W to purchase NOx emission allowances from any

program under the federal NOx trading program.

The NOx Trading Program does not cap the emissions of NOx from any

particular source at a fixed level. Rather, the NOx Trading Program caps the number

of allowances available for the Agency to allocate each year. Beginning in the ozone

control period for 2004, all units subject to Subparts U or W must hold NOx emission

allowances at least equal to that unit’s actual NOx emissions for that ozone control

period. Those allowances can come from several sources: allowances allocated from

the NOx budgets established in Subparts U or W; purchased from those units that

receive allocations under either Subpart U or W; transferred from units not subject to

Subparts U or W, under the provisions of Subpart X; or purchased from any other unit

participating in the federal NOx trading program. Allowances may be banked, or held

over from control period to control period, for the life of the program.

Scope and Affected Facilities

The NOx Trading Program is a statewide program. The NOx SIP Call requires

“regional-scale reductions in NOx emissions, and, thereby, reduced transported NOx

and ozone.” 63 Fed. Reg. 57,356, 57,359 (1998). Subpart U must apply to all large

non-EGUs throughout the state to satisfy this requirement. Appendix E lists the 42

existing non-EGUs that meet the definition of a large non-EGU in Illinois. Exh. 1 at 3-

4.

Implementation Date

The trading portion of Subpart U will control emissions of NOx from large non-

EGUs during the ozone control period beginning in 2004. However, pursuant to

Section 217.454(e), the requirements of Subpart U will only become effective during

the first ozone control period after the year in which: (1) all other states located in

USEPA Region 5, or contiguous to Illinois, and subject to the NOx SIP Call, have

non-EGU position, so long as the non-EGUs would not be permitted to receive

allocations from the EGU portion of the NOx emission budget. Tr.1 at 19-20. Subpart

U incorporates the large non-EGUs into the NOx Trading Program, but ensures that no

unit receiving fixed allowances pursuant to Subpart U will also receive allowances

pursuant to Subpart W. Subpart W specifically excluded from the requirements of

Subpart W those units receiving allocations under Subpart U in Appendix D. See 35

Ill. Adm. Code 217, Appendix D.

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6

adopted regulations to implement the requirements of the NOx SIP Call; and (2)

USEPA has approved such regulations as part of each state’s State Implementation

Plan. Should either condition not be met by the 2004 ozone control period, the

implementation date for this program must be deferred accordingly.

Applicability

Section 217.454 describes those units subject to the requirements of Subpart U.

The definition is rather complex. First, the unit must be a fossil fuel-fired stationary

boiler, combustion turbine, or combined cycle system, with a maximum design heat

input greater than 250 mmbtu/hr. Second, the unit must be listed on Appendix E. A

unit can still be subject to the requirements of Subpart U if it is not a unit listed on

Appendix E, as long as one of the following is true: (1) the unit never serves a

generator producing electricity for sale; (2) the unit serves a generator producing

electricity for sale, but such generator has a nameplate capacity of 25 MWe or less and

has the potential to use no more than 50% of the potential electrical output capacity of

the unit; (3) the unit is part of any source listed on proposed Appendix E; or (4) the

unit is subject to Subpart W that elects to permanently become subject to Subpart U.

Units that meet these conditions are “budget units” subject to Subpart U.

Section 217.454(c) allows any budget unit subject to Subpart U to elect low-

emitter status by obtaining a permit with federally enforceable conditions. After the

effective date of such a permit, the unit will be subject to only the requirements of

Section 217.472. For a discussion of those requirements, see pages 7-8 of this opinion.

Compliance Requirements

Section 217.456 contains the requirements with which the non-EGUs subject to

Subpart U must comply. Subsection (a) incorporates generally the federal requirements

of the model NOx trading program in 40 C.F.R. Part 96. Subsection (c) specifically

incorporates the federal monitoring requirements of 40 C.F.R. Part 96, Subpart H.

Subsection (e) provides the recordkeeping and reporting requirements.

Pursuant to Section 217.456(b), the owner or operator of a unit subject to the

requirements of Subpart U must apply for a budget permit. Section 217.458 contains

the specific procedure for applying for a budget permit. For example, Section 217.458

fixes the deadlines by which budget units must be apply for permits. Section 217.458

also explains the duties of owners or operators to apply and reapply for a budget

permit, as well as the information required in the application.

Section 217.456(d) establishes November 30 of each year as the allowance

transfer deadline. By this date, units subject to Subpart U must hold allowances at least

equal to that unit’s total NOx emissions for the preceding ozone control period. Each

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7

ton of NOx emitted in excess of that unit’s held allowances constitutes a separate

violation of Subpart U and the Act.

NOx Trading Program

Section 217.460 establishes the actual NOx trading budget for units subject to

the requirements of Subpart U. Subsection (a) sets the initial budget at 4,882 tons of

NOx per ozone control season. Appendix E describes how the budget will initially be

allocated. Column four of Appendix E lists the maximum number of allowances each

unit may receive from the Agency in any ozone control period. Column five of

Appendix E lists the number of allowances each unit will be allocated by the Agency.

The difference between Columns four and five reflects the 3% set-aside for new

sources.

Sections 217.460(b), (c), and (d) require the Agency to adjust the budget by

either: adding allowances for units opting into the program; removing allowances for

units opting into the low-emitter status option; or reflecting independent actions of the

USEPA. Pursuant to Section 217.460(d), if USEPA adjusts the base Subpart U NOx

Trading Budget, the Agency will adjust the Subpart U NOx trading budget pro-rata.

Pursuant to Section 217.460(e), if USEPA adjusts the Subpart U NOx Trading Budget

as to any individual budget unit, the Agency will only adjust the individual allowance

allocation for that unit. Any adjustments to Appendix E by the Agency to match the

adjustments of USEPA must comply with the requirements of the Administrative

Procedure Act (5 ILCS 100/1-1 et seq. (1998)).

Obtaining Allocations

The rule provides specific provisions describing how the Agency will allocate

the 4,882 allowances in the Subpart U NOx Trading Budget each year. Section 217.466

provides that the Agency will allocate to each unit listed on Appendix E the number of

allowances found in Column 5 of Appendix E. Section 217.462(b) allows any unit

listed on Appendix E to permanently transfer some or all of its allowances found in

Column 5 of Appendix E to any other unit subject to Subparts U or W.

Section 217.468(b) directs the Agency to create a new source set-aside,

composed of 3% of the total allowances in the Subpart U NOx Trading Program, or 146

allowances. New budget units

6 may request to purchase allowances from the new

6 Pursuant to Section 217.468(a), new budget units in the 2004, 2005, and 2006 ozone

control periods are those units that commenced commercial operation on or after

January 1, 2000. For the 2007 and later ozone control periods, new budget units are

those units that commenced commercial operation no more that three ozone control

periods prior to the year an allocation from the new source set-aside is requested.

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8

source set-aside, up to an amount determined pursuant to Section 217.464. The new

budget unit must purchase these allowances from the Agency at a price determined

pursuant to Section 217.468(g). The Agency will allocate any allowances in the new

source set-aside that are not to the units listed on Appendix E pro rata. Column 4 of

Appendix E lists the total number of allowances any single unit may receive from the

Agency in any single year.

Early Reduction Credits (ERCs)

Section 217.470 allows budget units to request ERCs if they reduce their NOx

emissions 30% or more below their actual NOx emissions rate for the ozone control

period in which ERCs are requested. Account representatives may request ERCs for

reductions in the 2001 or 2002 ozone control period, and the 2003 ozone control period

if approved by USEPA. ERCs may be used in the 2004 ozone control period, or later

periods if approved by USEPA.

While the entire compliance supplement pool available for ERCs is 17,688

allowances, Section 217.470(f)(1) reserves no more than 2,427 allowances for Subpart

U units. No more than half of these allowances may be allocated for reductions made

in each of the 2001 and 2002 ozone control periods, with the remainder allocated for

reductions made in the 2003 ozone control period, if approved by USEPA.

Low-Emitter Status

Units listed on Appendix E may elect low-emitter status pursuant to Section

217.454(c). To do so, the unit must obtain a federally enforceable permit that meets

the conditions set forth in Section 217.472(a). The permit must restrict the unit’s fuel

use and operating hours, limit the unit’s potential NOx emissions, and contain specific

monitoring, recordkeeping and reporting requirements.

Once such a permit is issued, the unit will only be subject to the requirements of

Section 217.472, and no longer be required to hold NOx allowances. Pursuant to

Section 217.460(c), the Agency will reduce the Subpart U NOx budget by the number

of allowances equal to the amount of NOx emissions in the unit’s federally enforceable

permit. The low-emitter unit may still offset its permitted emissions by obtaining

allowances issued for voluntary NOx reductions that meet the requirements of Subpart

X. In that case, the Agency will not reduce the Subpart U NOx budget by the

allowances obtained in accordance with Subpart X.

Opt-in Units

Section 9.9(d)(2) of the Act requires the Board to provide a means for emission

units to opt into the NOx Trading Program (415 ILCS 5/9.9(d)(2) (1998) (1998 State

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9

Bar Edition, 1999 Supp.)). Sections 217.474, 217.476, 217.478, 217.480, and

217.482 implement this directive.

Section 217.474 defines which units may opt-in to the NOx Trading Program,

and provides the requirements opt-in units must meet. To be eligible, a unit must first

be an operating fossil fuel-fired stationary boiler, combustion turbine, combined cycle

system, cement kiln or stationary internal combustion engine. The unit may then

qualify if it: is not a budget EGU under Subpart W; vents all of its emissions to a

stack; has documented heat input for more than 876 hours in the six months

immediately preceding the unit’s submission of a budget permit application; is not

covered by the retired unit exemption of 40 C.F.R. 96.5; and is not a low-emitter unit

under Sections 217.454(c) and 217.472.

Opt-in units must have an account representative. The account representative

must apply for a budget permit that meets the requirements of Section 217.458, and

also contains provisions for a change in the regulatory status of the unit to an opt-in

budget unit under Section 217.454. The account representative must also submit a

monitoring plan for the unit in accordance with 40 C.F.R. Part 96, Subpart H.

Section 217.476 describes the process by which the Agency will issue or deny a

budget permit to an opt-in unit. In addition to the requirements of Section 217.458, the

Agency will also determine the sufficiency of the unit’s monitoring plan. If the Agency

determines that the unit’s monitoring plan is sufficient, the unit must then monitor and

report the NOx emission rate and the heat input of the unit in accordance with 40

C.F.R. Part 96, Subpart H, for one full ozone control period. The information

gathered during this time will be used to determine the unit’s baseline heat rate and

baseline NOx emission rate.

Once the Agency has issued the permit, and the opt-in unit becomes an opt-in

budget unit, Section 217.480 requires the owners or operators of the unit to notify the

Agency and USEPA in writing when the opt-in unit becomes an opt-in budget unit.

Sections 217.480(c), (d), and (e) describe the procedures USEPA will take to deduct

allowances from the opt-in budget unit’s compliance account.

Section 217.482 provides the allocation procedures for opt-in budget units. The

Agency will allocate allowances in an amount equal to the opt-in budget unit’s heat

input, determined in accordance with Section 217.482(b), multiplied by the lessor of the

opt-in budget unit’s baseline NOx emission rate or the lowest NOx emissions limitation

under State or federal law.

Section 217.478 provides the procedures an opt-in budget unit must follow to

withdraw from the NOx Trading Program. Opt-in budget units may only withdraw

outside of the ozone control period,

i.e

. between September 30 and May 1, and must

submit a withdrawal request within 90 days of the effective date of the withdrawal.

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10

The opt-in budget unit must also submit an annual compliance certification report in

accordance with 40 C.F.R. 96.30. The opt-in budget unit must hold enough allowances

to cover its NOx emissions for the preceding ozone control period. USEPA will also

deduct from the opt-in budget unit’s account any allowances allocated for the ozone

control period for which the withdrawal is to be effective, and earlier ozone control

periods. If any allowances remain after these deductions, USEPA will then establish

and transfer any remaining allowances to a new general account for use by the owner or

operator of the opt-in unit.

If all of the above requirements are met, the Agency will withdraw the opt-in

unit’s budget permit. Once an opt-in unit withdraws from the NOx Trading Program,

the account representative may not submit another application for a budget permit under

Section 217.474(d) until four years after the date the opt-in unit’s budget permit was

withdrawn.

Subpart X

New Subpart X provides a voluntary emission reduction program to supplement

the NOx allowances available to emission units subject to Subparts U or W. This

program is required under Section 9.9(d) of the Act (415 ILCS 5/9.9(d) (1998) (1998

State Bar Edition, 1999 Supp.)). That Section provides in pertinent part that the Board

shall:

(3) provide for voluntary reductions of NOx emissions from emission

units

. . . to provide additional allowances to EGUs and non-EGUs to

be allocated by the Agency. The regulations shall further provide

that such voluntary reductions are verifiable, quantifiable,

permanent, and federally enforceable. 415 ILCS 5/9.9(d)(3)

(1998) (1998 State Bar Edition, 1999 Supp.)).

In support of this voluntary program, the Agency stated its belief that the

General Assembly included the last provision of Section 9.9(d)(3) of the Act to ensure

that this supplemental program must “comport with the limitations and framework of

the SIP Call and the general requirements for approval of a SIP revision.” Exh. 3 at

16. The Agency explained that all these elements, “verifiable, quantifiable, and

federally enforceable,” are necessary to meet both these objectives.

Id

. Therefore, the

Agency emphasized that the provisions in Subpart X are intended to satisfy these

requirements. Exh. 3 at 16-17.

How to Participate in Subpart X

Subpart X does not directly respond to the NOx SIP Call. Subpart X does

implement Section 9.9(d)(3) of the Act (415 ILCS 5/9.9(d)(3) (1998) (1998 State Bar

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11

Edition, 1999 Supp.)). The intent behind Subpart X is to “transfer NOx reductions

from the non-trading portion of the state budget to the trading portion.” Tr.1 at 24.

Because this is a voluntary program, there is no implementation date

requirement. However, Section 217.815(a) states that the first ozone control period in

which NOx emission reductions may be credited is 2003. Section 217.840(c)(3) states

that allowances shall be issued by the May 1 after the control period in which the NOx

emission reduction has occurred.

Subpart X creates a voluntary program that allows owners or operators of

stationary sources to generate additional NOx allowances for use by units subject to

Subparts U or W. Units must first meet the eligibility requirements of Section

217.805. If the unit: discharges through a stack; is fossil fuel-fired; is not subject to

the requirements of either Subparts T, U, V, or W; is not a retired unit; and is not a

stationary internal combustion engine that emits more than one ton of NOx per day

during the ozone control period, the owner or operator of that unit may submit a

proposal to the Agency. Tr.1 at 25-26; Exh. 3 at 17.

Units electing to participate in the Subpart X voluntary NOx emissions reduction

program must comply with the requirements of Section 217.810. Exh. 3 at 18. The

owner or operator must submit a proposal that meets the requirement of Section

217.835, submit a baseline determination in accordance with Section 217.820, and

monitor and report emissions in accordance with Sections 217.850 and 217.855.

Section 217.835 describes the information that must be submitted in a NOx

emission reduction proposal. The proposal must identify all emission units at the

source, whether each unit is subject to Subparts T, U, V, W, or X, and the baseline

emissions of each unit subject to the NOx emission cap. The proposal must also

identify the NOx emission reduction unit, how the reductions will be obtained, the

amount of the reductions, all other emission units at the source that will be subject to a

NOx emission cap, and the emission units to which the allowances will be allocated.

Tr.1 at 26-27.

In addition, the owner or operator must request an emission cap on other NOx

emissions at the source. The NOx emission cap is intended to prevent production

shifting, where a source could “shut down one [unit] and ratchet up the production of a

boiler right next to it, which really wouldn’t reduce NOx emissions in the air shed.”

Tr.1 at 27. The NOx emissions cap must include all other NOx emission units at the

source that are not subject to Subparts U or W and are the same type of emission unit

as the emission reduction unit. The example provided in Section 217.810(a)(2) is that

if the emission reduction unit is a boiler, combined cycle system or turbine, then the

NOx emission cap must include all boilers, combined cycle systems or turbines at the

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12

source that are not subject to Subparts U or W. Section 217.835 provides a method by

which like-kind emission units may be exempted from the NOx emission cap.

The owner or operator must demonstrate how the NOx emission cap included in

the NOx emission proposal will be determined. Section 217.815 provides three

methods: use of NOx emission reduction technology; a permanent shutdown of the unit

after January 1, 1995; or a reduction in the rate or hours of operation. This

demonstration must be performed pursuant to Section 217.845. Exh. 3 at 20.

Sections 217.820 and 217.825 describe how a unit’s baseline and creditable NOx

emissions will be determined. A unit’s NOx emissions baseline is determined by

multiplying the unit’s actual 1995 calendar year emissions by 5/12ths. Section 217.820

also provides alternative methods for determining this emissions baseline if the actual

1995 emissions were not reported. To the extent that the unit reduces its emissions

below this number, Section 217.825 provides that the Agency will allocate 80% of any

actual NOx emission reductions to the specified Subpart U or W unit. The Agency will

retire the remaining 20% for air quality.

Finally, each emission reduction unit at the source must comply, to the extent

practicable, with the monitoring requirements of Section 217.850. Section 217.850

requires the use of a continuous emission monitoring systems (CEMS), or an alternative

system approved by the Agency and included in the source’s federally enforceable

permit. Section 217.855 lists the reporting requirements for the information gathered

using CEMS, or other Agency approved method.

Once the Agency has received the source’s complete NOx emission reduction

proposal, and any emissions data required to verify that the reductions have occurred,

Section 217.840 provides that the Agency has 90 days to notify the owner or operator

in writing of its decision. The owner or operator of the source may extend this

deadline in writing. The Agency’s failure to act or a final decision to deny the proposal

is appealable to the Board.

The NOx emission reduction proposal will only be effective after the owner or

operator of the emission reduction unit has obtained or modified a permit with federally

enforceable conditions. Exh. 3 at 20. The owner or operator must obtain a permit that

contains as federally enforceable conditions the commitments in the NOx emission

reduction proposal and the NOx emission cap. The permit or permit modifications must

be obtained no later than the date on which the NOx emission reductions will

commence.

Section 217.865 provides consequences for owners or operators of emission

reduction units for which NOx emission reductions have been recognized under Subpart

X, but then have actual NOx emissions in excess of the emission reduction limit in any

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13

ozone control period for which NOx allowances have been issued. Such sources must

purchase and surrender to the Agency NOx allowances equal to two to four times the

excess NOx emissions, depending on the number of control periods in which such

violations occur. The Agency will retire all surrendered allowances for air quality.

Significant Change from First Notice

The Board made one significant change to Section 217.805, regarding emission

unit eligibility. At first notice, Section 217.805(c) limited participation in Subpart X to

only those units permitted to operate prior to January 1, 1995 (pre-1995 units). The

Agency presented several reasons to support excluding units permitted to operate after

January 1, 1995 (post-1995 units) from participating in Subpart X. A number of

participants argued that the post-1995 units should be allowed to participate in Subpart

X. The Board considered the arguments made in support of both positions and decided

to allow post-1995 units to participate in this voluntary program.

The Board concluded that the Agency’s reasoning was focused on making

Subpart X most acceptable to USEPA, while IERG presented logical reasons as to why

allowing post-1995 units to be eligible under Subpart X did not increase the risk that

USEPA might find an objection with this rule. The Agency stated that USEPA’s main

criticism of the rule was the lack of Part 75 monitoring requirements, not a preservation

of the growth factor. IERG presented compelling support that emission reductions

from post-1995 units could meet the statutory requirements of Section 9.9 of the Act, in

that such reductions need be “verifiable, quantifiable, permanent, and federally

enforceable” (415 ILCS 5/9.9(d)(3) (1998) (1998 State Bar Edition, 1999 Supp.)). The

Board finds that making this change should not adversely affect USEPA’s decision to

approve this rule.

7

Part 211

Two definitions are adopted in Part 211. A definition of the “NOx Trading

Program” is added at Section 211.4067. This definition simply states that the NOx

Trading Program includes the requirements of Subparts U and W, and the provisions of

the federal NOx trading program found at 40 C.F.R. Part 96. Also, the definition of

“source” at Section 211.6130 is amended. to make it identical to the definition of

“source” found in Section 39.5 of the Act (415 ILCS 5/39.5) (1998)).

7 For a more detailed discussion of this issue, see the Board’s second-notice opinion and

order. Proposed New 35 Ill. Adm. Code 217.Subpart U, NOx Control and Trading

Program for Specified NOx Generating Units, Subpart X, Voluntary NOx Emissions

Reduction Program, and Amendments to 35 Ill. Adm. Code 211 (February 15, 2001),

R01-17.

---

14

TECHNICAL AND ECONOMIC CONSIDERATIONS

Section 27(a) of the Act requires that in promulgating regulations, the Board

“shall take into account . . . the technical feasibility and economic reasonableness of

measuring or reducing the particular type of pollution.” 415 ILCS 5/27(a) (1998). The

Board first notes that the program established by proposed Subpart X is a voluntary

program, and thus the presumption is that NOx reductions will only be undertaken to

the extent that the source believes that such reductions are technically feasible and

economically reasonable.

A separate economic reasonableness review was not provided. The analysis is

the same as for Subpart U. For those non-EGUs, the Agency estimates that the cost

effectiveness of controls will vary from $150--$7,450 per ton of NOx removed. Exh. 1

at 6. However, this estimate does not include the impact of emission trading.

Id.

USEPA and the Agency estimate that the average cost effectiveness of units subject to

the requirements of Subpart U with trading is $1,583 (1999 dollars) per ton of NOx

removed. Exh. 1 at 6-8.

CONCLUSION

The NOx SIP Call requires that Illinois submit a SIP revision to control the

emission of the NOx during the ozone control period. Sections 9.9(b), (c), and (d) of

the Act (415 ILCS 5/9.9(b), (c), and (d) (1998) (1998 State Bar Edition, 1999 Supp.)),

require the Board to adopt the NOx emissions trading program to comply with this

federal mandate. The Board believes that these rules represent an equitable and

economic method of satisfying these obligations. Therefore, these rules are adopted as

final, adding Subparts U and X to 35 Ill. Adm. Code 217, and conforming amendments

to 35 Ill. Adm. Code 211.

ORDER

The Board hereby adopts these amendments to 35 Ill. Adm. Code 217. The

Board directs the Clerk of the Board to file these adopted rules with the Secretary of

State.

TITLE 35: ENVIRONMENTAL PROTECTION

SUBTITLE B: AIR POLLUTION

CHAPTER I: POLLUTION CONTROL BOARD

SUBCHAPTER c: EMISSION STANDARDS AND LIMITATIONS

FOR STATIONARY SOURCES

PART 211

DEFINITIONS AND GENERAL PROVISIONS

---

15

SUBPART A: GENERAL PROVISIONS

Section

211.101 Incorporations by Reference

211.102 Abbreviations and Conversion Factors

SUBPART B: DEFINITIONS

Section

211.121 Other Definitions

211.122 Definitions (Repealed)

211.130 Accelacota

211.150 Accumulator

211.170 Acid Gases

211.210 Actual Heat Input

211.230 Adhesive

211.240 Adhesion Promoter

211.250 Aeration

211.270 Aerosol Can Filling Line

211.290 Afterburner

211.310 Air Contaminant

211.330 Air Dried Coatings

211.350 Air Oxidation Process

211.370 Air Pollutant

211.390 Air Pollution

211.410 Air Pollution Control Equipment

211.430 Air Suspension Coater/Dryer

211.450 Airless Spray

211.470 Air Assisted Airless Spray

211.474

 

Alcohol

211.479 Allowance

211.484 Animal

211.485 Animal Pathological Waste

211.490 Annual Grain Through-Put

211.495 Anti-Glare/Safety Coating

211.510 Application Area

211.530 Architectural Coating

211.550 As Applied

211.560 As-Applied Fountain Solution

211.570 Asphalt

211.590 Asphalt Prime Coat

211.610 Automobile

211.630 Automobile or Light-Duty Truck Assembly Source or Automobile or

Light-Duty Truck Manufacturing Plant

211.650 Automobile or Light-Duty Truck Refinishing

211.660 Automotive/Transportation Plastic Parts

---

16

211.670 Baked Coatings

211.680 Bakery Oven

211.685 Basecoat/Clearcoat System

211.690 Batch Loading

211.695 Batch Operation

211.696 Batch Process Train

211.710 Bead-Dipping

211.730 Binders

211.750 British Thermal Unit

211.770 Brush or Wipe Coating

211.790 Bulk Gasoline Plant

211.810 Bulk Gasoline Terminal

211.820 Business Machine Plastic Parts

211.830 Can

211.850 Can Coating

211.870 Can Coating Line

211.890 Capture

211.910 Capture Device

211.930 Capture Efficiency

211.950 Capture System

211.955 Cement

211.960 Cement Kiln

211.970 Certified Investigation

211.980 Chemical Manufacturing Process Unit

211.990 Choke Loading

211.1010 Clean Air Act

211.1050 Cleaning and Separating Operation

211.1070 Cleaning Materials

211.1090 Clear Coating

211.1110 Clear Topcoat

211.1120 Clinker

211.1130 Closed Purge System

211.1150 Closed Vent System

211.1170 Coal Refuse

211.1190 Coating

211.1210 Coating Applicator

211.1230 Coating Line

211.1250 Coating Plant

211.1270 Coil Coating

211.1290 Coil Coating Line

211.1310

 

Cold Cleaning

211.1312 Combined Cycle System

211.1316 Combustion Turbine

211.1320 Commence Commercial Operation

---

17

211.1324 Commence Operation

211.1328 Common Stack

211.1330 Complete Combustion

211.1350 Component

211.1370 Concrete Curing Compounds

211.1390 Concentrated Nitric Acid Manufacturing Process

211.1410 Condensate

211.1430 Condensible PM-10

211.1465 Continuous Automatic Stoking

211.1467 Continuous Coater

211.1470 Continuous Process

211.1490 Control Device

211.1510

 

Control Device Efficiency

211.1515 Control Period

211.1520 Conventional Air Spray

211.1530 Conventional Soybean Crushing Source

211.1550 Conveyorized Degreasing

211.1570 Crude Oil

211.1590 Crude Oil Gathering

211.1610 Crushing

211.1630 Custody Transfer

211.1650 Cutback Asphalt

211.1670 Daily-Weighted Average VOM Content

211.1690 Day

211.1710 Degreaser

211.1730 Delivery Vessel

211.1750 Dip Coating

211.1770 Distillate Fuel Oil

211.1780 Distillation Unit

211.1790 Drum

211.1810 Dry Cleaning Operation or Dry Cleaning Facility

211.1830 Dump-Pit Area

211.1850 Effective Grate Area

211.1870 Effluent Water Separator

211.1875 Elastomeric Materials

211.1880 Electromagnetic Interference/Radio Frequency Interference (EMI/RFI)

Shielding Coatings

211.1885 Electronic Component

211.1890 Electrostatic Bell or Disc Spray

211.1900 Electrostatic Prep Coat

211.1910 Electrostatic Spray

211.1920 Emergency or Standby Unit

211.1930 Emission Rate

211.1950 Emission Unit

---

18

211.1970 Enamel

211.1990 Enclose

211.2010 End Sealing Compound Coat

211.2030 Enhanced Under-the-Cup Fill

211.2050 Ethanol Blend Gasoline

211.2070

 

Excess Air

211.2080 Excess Emissions

211.2090 Excessive Release

211.2110 Existing Grain-Drying Operation (Repealed)

211.2130 Existing Grain-Handling Operation (Repealed)

211.2150 Exterior Base Coat

211.2170 Exterior End Coat

211.2190 External Floating Roof

211.2210 Extreme Performance Coating

211.2230 Fabric Coating

211.2250 Fabric Coating Line

211.2270 Federally Enforceable Limitations and Conditions

211.2285 Feed Mill

211.2290 Fermentation Time

211.2300 Fill

211.2310 Final Repair Coat

211.2330 Firebox

211.2350 Fixed-Roof Tank

211.2360 Flexible Coating

211.2365 Flexible Operation Unit

211.2370 Flexographic Printing

211.2390 Flexographic Printing Line

211.2410

 

Floating Roof

211.2420 Fossil Fuel

211.2425 Fossil Fuel-Fired

211.2430 Fountain Solution

211.2450 Freeboard Height

211.2470 Fuel Combustion Emission Unit or Fuel Combustion Emission Source

211.2490 Fugitive Particulate Matter

211.2510 Full Operating Flowrate

211.2530 Gas Service

211.2550 Gas/Gas Method

211.2570 Gasoline

211.2590 Gasoline Dispensing Operation or Gasoline Dispensing Facility

211.2610 Gel Coat

211.2620 Generator

211.2630 Gloss Reducers

211.2650 Grain

211.2670 Grain-Drying Operation

---

19

211.2690 Grain-Handling and Conditioning Operation

211.2710 Grain-Handling Operation

211.2730 Green-Tire Spraying

211.2750 Green Tires

211.2770 Gross Heating Value

211.2790 Gross Vehicle Weight Rating

211.2810

 

Heated Airless Spray

211.2815 Heat Input

211.2820 Heat Input Rate

211.2830 Heatset

211.2850 Heatset Web Offset Lithographic Printing Line

211.2870 Heavy Liquid

211.2890 Heavy Metals

211.2910 Heavy Off-Highway Vehicle Products

211.2930 Heavy Off-Highway Vehicle Products Coating

211.2950 Heavy Off-Highway Vehicle Products Coating Line

211.2970 High Temperature Aluminum Coating

211.2990 High Volume Low Pressure (HVLP) Spray

211.3010 Hood

211.3030 Hot Well

211.3050 Housekeeping Practices

211.3070 Incinerator

211.3090 Indirect Heat Transfer

211.3110 Ink

211.3130 In-Process Tank

211.3150 In-Situ Sampling Systems

211.3170 Interior Body Spray Coat

211.3190 Internal-Floating Roof

211.3210 Internal Transferring Area

211.3230 Lacquers

211.3250 Large Appliance

211.3270 Large Appliance Coating

211.3290 Large Appliance Coating Line

211.3310 Light Liquid

211.3330 Light-Duty Truck

211.3350 Light Oil

211.3370 Liquid/Gas Method

211.3390 Liquid-Mounted Seal

211.3410 Liquid Service

211.3430 Liquids Dripping

211.3450 Lithographic Printing Line

211.3470 Load-Out Area

211.3480 Loading Event

211.3483 Long Dry Kiln

---

20

211.3485 Long Wet Kiln

211.3487 Low-NOx Burner

211.3490 Low Solvent Coating

211.3500 Lubricating Oil

211.3510 Magnet Wire

211.3530 Magnet Wire Coating

211.3550 Magnet Wire Coating Line

211.3570 Major Dump Pit

211.3590 Major Metropolitan Area (MMA)

211.3610 Major Population Area (MPA)

211.3620 Manually Operated Equipment

211.3630 Manufacturing Process

211.3650 Marine Terminal

211.3660 Marine Vessel

211.3670 Material Recovery Section

211.3690 Maximum Theoretical Emissions

211.3695 Maximum True Vapor Pressure

211.3710 Metal Furniture

211.3730 Metal Furniture Coating

211.3750 Metal Furniture Coating Line

211.3770 Metallic Shoe-Type Seal

211.3780 Mid-Kiln Firing

211.3790 Miscellaneous Fabricated Product Manufacturing Process

211.3810 Miscellaneous Formulation Manufacturing Process

211.3830 Miscellaneous Metal Parts and Products

211.3850 Miscellaneous Metal Parts and Products Coating

211.3870 Miscellaneous Metal Parts or Products Coating Line

211.3890 Miscellaneous Organic Chemical Manufacturing Process

211.3910 Mixing Operation

211.3915 Mobile Equipment

211.3930 Monitor

211.3950 Monomer

211.3960 Motor Vehicles

211.3965 Motor Vehicle Refinishing

211.3970

 

Multiple Package Coating

211.3980 Nameplate Capacity

211.3990 New Grain-Drying Operation (Repealed)

211.4010 New Grain-Handling Operation (Repealed)

211.4030 No Detectable Volatile Organic Material Emissions

211.4050 Non-Contact Process Water Cooling Tower

211.4055 Non-Flexible Coating

211.4065 Non-Heatset

211.4067 NOx Trading Program

211.4070 Offset

---

21

211.4090 One Hundred Percent Acid

211.4110 One-Turn Storage Space

211.4130 Opacity

211.4150 Opaque Stains

211.4170 Open Top Vapor Degreasing

211.4190 Open-Ended Valve

211.4210 Operator of a Gasoline Dispensing Operation or Operator of a Gasoline

Dispensing Facility

211.4230 Organic Compound

211.4250 Organic Material and Organic Materials

211.4260 Organic Solvent

211.4270 Organic Vapor

211.4290 Oven

211.4310 Overall Control

211.4330 Overvarnish

211.4350 Owner of a Gasoline Dispensing Operation or Owner of a Gasoline

Dispensing Facility

211.4370 Owner or Operator

211.4390 Packaging Rotogravure Printing

211.4410 Packaging Rotogravure Printing Line

211.4430 Pail

211.4450 Paint Manufacturing Source or Paint Manufacturing Plant

211.4470 Paper Coating

211.4490 Paper Coating Line

211.4510 Particulate Matter

211.4530 Parts Per Million (Volume) or PPM (Vol)

211.4550 Person

211.4590 Petroleum

211.4610 Petroleum Liquid

211.4630 Petroleum Refinery

211.4650 Pharmaceutical

211.4670 Pharmaceutical Coating Operation

211.4690 Photochemically Reactive Material

211.4710 Pigmented Coatings

211.4730 Plant

211.4740 Plastic Part

211.4750 Plasticizers

211.4770 PM-10

211.4790 Pneumatic Rubber Tire Manufacture

211.4810 Polybasic Organic Acid Partial Oxidation Manufacturing Process

211.4830 Polyester Resin Material(s)

211.4850 Polyester Resin Products Manufacturing Process

211.4870 Polystyrene Plant

211.4890 Polystyrene Resin

---

22

211.4910 Portable Grain-Handling Equipment

211.4930 Portland Cement Manufacturing Process Emission Source

211.4950

 

Portland Cement Process or Portland Cement Manufacturing Plant

211.4960 Potential Electrical Output Capacity

211.4970 Potential to Emit

211.4990 Power Driven Fastener Coating

211.5010 Precoat

211.5015 Preheater Kiln

211.5020 Preheater/Precalciner Kiln

211.5030 Pressure Release

211.5050 Pressure Tank

211.5060 Pressure/Vacuum Relief Valve

211.5061 Pretreatment Wash Primer

211.5065 Primary Product

211.5070 Prime Coat

211.5080 Primer Sealer

211.5090 Primer Surfacer Coat

211.5110 Primer Surfacer Operation

211.5130 Primers

211.5150 Printing

211.5170 Printing Line

211.5185 Process Emission Source

211.5190 Process Emission Unit

211.5210 Process Unit

211.5230 Process Unit Shutdown

211.5245 Process Vent

211.5250 Process Weight Rate

211.5270 Production Equipment Exhaust System

211.5310 Publication Rotogravure Printing Line

211.5330 Purged Process Fluid

211.5340 Rated Heat Input Capacity

211.5350 Reactor

211.5370 Reasonably Available Control Technology (RACT)

211.5390 Reclamation System

211.5410 Refiner

211.5430 Refinery Fuel Gas

211.5450 Refinery Fuel Gas System

211.5470 Refinery Unit or Refinery Process Unit

211.5480 Reflective Argent Coating

211.5490 Refrigerated Condenser

211.5500 Regulated Air Pollutant

211.5510 Reid Vapor Pressure

211.5530 Repair

211.5550 Repair Coat

---

23

211.5570 Repaired

211.5580 Repowering

211.5590 Residual Fuel Oil

211.5600 Resist Coat

211.5610 Restricted Area

211.5630 Retail Outlet

211.5650 Ringelmann Chart

211.5670 Roadway

211.5690 Roll Coater

211.5710 Roll Coating

211.5730 Roll Printer

211.5750 Roll Printing

211.5770 Rotogravure Printing

211.5790 Rotogravure Printing Line

211.5810 Safety Relief Valve

211.5830 Sandblasting

211.5850 Sanding Sealers

211.5870 Screening

211.5890 Sealer

211.5910 Semi-Transparent Stains

211.5930 Sensor

211.5950 Set of Safety Relief Valves

211.5970 Sheet Basecoat

211.5980 Sheet-Fed

211.5990 Shotblasting

211.6010 Side-Seam Spray Coat

211.6025 Single Unit Operation

211.6030 Smoke

211.6050 Smokeless Flare

211.6060 Soft Coat

211.6070 Solvent

211.6090 Solvent Cleaning

211.6110 Solvent Recovery System

211.6130 Source

211.6140 Specialty Coatings

211.6145 Specialty Coatings for Motor Vehicles

211.6150 Specialty High Gloss Catalyzed Coating

211.6170 Specialty Leather

211.6190 Specialty Soybean Crushing Source

211.6210 Splash Loading

211.6230 Stack

211.6250 Stain Coating

211.6270 Standard Conditions

211.6290 Standard Cubic Foot (scf)

---

24

211.6310 Start-Up

211.6330 Stationary Emission Source

211.6350 Stationary Emission Unit

211.6355 Stationary Gas Turbine

211.6360 Stationary Reciprocating Internal Combustion Engine

211.6370 Stationary Source

211.6390 Stationary Storage Tank

211.6400 Stencil Coat

211.6410 Storage Tank or Storage Vessel

211.6420 Strippable Spray Booth Coating

211.6430 Styrene Devolatilizer Unit

211.6450 Styrene Recovery Unit

211.6470 Submerged Loading Pipe

211.6490 Substrate

211.6510 Sulfuric Acid Mist

211.6530 Surface Condenser

211.6540 Surface Preparation Materials

211.6550 Synthetic Organic Chemical or Polymer Manufacturing Plant

211.6570 Tablet Coating Operation

211.6580 Texture Coat

211.6590 Thirty-Day Rolling Average

211.6610 Three-Piece Can

211.6620 Three or Four Stage Coating System

211.6630 Through-the-Valve Fill

211.6650 Tooling Resin

211.6670 Topcoat

211.6690 Topcoat Operation

211.6695 Topcoat System

211.6710 Touch-Up

211.6720 Touch-Up Coating

211.6730 Transfer Efficiency

211.6750 Tread End Cementing

211.6770 True Vapor Pressure

211.6790 Turnaround

211.6810 Two-Piece Can

211.6830 Under-the-Cup Fill

211.6850 Undertread Cementing

211.6860 Uniform Finish Blender

211.6870 Unregulated Safety Relief Valve

211.6880 Vacuum Metallizing

211.6890 Vacuum Producing System

211.6910 Vacuum Service

211.6930 Valves Not Externally Regulated

211.6950 Vapor Balance System

---

25

211.6970 Vapor Collection System

211.6990 Vapor Control System

211.7010 Vapor-Mounted Primary Seal

211.7030 Vapor Recovery System

211.7050 Vapor-Suppressed Polyester Resin

211.7070 Vinyl Coating

211.7090 Vinyl Coating Line

211.7110 Volatile Organic Liquid (VOL)

211.7130 Volatile Organic Material Content (VOMC)

211.7150 Volatile Organic Material (VOM) or Volatile Organic Compound (VOC)

211.7170 Volatile Petroleum Liquid

211.7190 Wash Coat

211.7200 Washoff Operations

211.7210 Wastewater (Oil/Water) Separator

211.7230 Weak Nitric Acid Manufacturing Process

211.7250 Web

211.7270 Wholesale Purchase - Consumer

211.7290 Wood Furniture

211.7310 Wood Furniture Coating

211.7330 Wood Furniture Coating Line

211.7350 Woodworking

211.7400 Yeast Percentage

Appendix A Rule into Section Table

Appendix B Section into Rule Table

AUTHORITY: Implementing Sections 9, 9.1, 9.9 and 10 and authorized by Sections

27 and 28.5 of the Environmental Protection Act [415 ILCS 5/9, 9.1, 9.9, 10, 27 and

28.5].

SOURCE: Adopted as Chapter 2: Air Pollution, Rule 201: Definitions, R71-23, 4

PCB 191, filed and effective April 14, 1972; amended in R74-2 and R75-5, 32 PCB

295, at 3 Ill. Reg. 5, p. 777, effective February 3, 1979; amended in R78-3 and 4, 35

PCB 75 and 243, at 3 Ill. Reg. 30, p. 124, effective July 28, 1979; amended in R80-5,

at 7 Ill. Reg. 1244, effective January 21, 1983; codified at 7 Ill. Reg. 13590; amended

in R82-1 (Docket A) at 10 Ill. Reg. 12624, effective July 7, 1986; amended in R85-

21(A) at 11 Ill. Reg. 11747, effective June 29, 1987; amended in R86-34 at 11 Ill. Reg.

12267, effective July 10, 1987; amended in R86-39 at 11 Ill. Reg. 20804, effective

December 14, 1987; amended in R82-14 and R86-37 at 12 Ill. Reg. 787, effective

December 24, 1987; amended in R86-18 at 12 Ill. Reg. 7284, effective April 8, 1988;

amended in R86-10 at 12 Ill. Reg. 7621, effective April 11, 1988; amended in R88-23

at 13 Ill. Reg. 10862, effective June 27, 1989; amended in R89-8 at 13 Ill. Reg. 17457,

effective January 1, 1990; amended in R89-16(A) at 14 Ill. Reg. 9141, effective May

23, 1990; amended in R88-30(B) at 15 Ill. Reg. 5223, effective March 28, 1991;

---

26

amended in R88-14 at 15 Ill. Reg. 7901, effective May 14, 1991; amended in R91-10

at 15 Ill. Reg. 15564, effective October 11, 1991; amended in R91-6 at 15 Ill. Reg.

15673, effective October 14, 1991; amended in R91-22 at 16 Ill. Reg. 7656, effective

May 1, 1992; amended in R91-24 at 16 Ill. Reg. 13526, effective August 24, 1992;

amended in R93-9 at 17 Ill. Reg. 16504, effective September 27, 1993; amended in

R93-11 at 17 Ill. Reg. 21471, effective December 7, 1993; amended in R93-14 at 18

Ill. Reg. 1253, effective January 18, 1994; amended in R94-12 at 18 Ill. Reg. 14962,

effective September 21, 1994; amended in R94-14 at 18 Ill. Reg. 15744, effective

October 17, 1994; amended in R94-15 at 18 Ill. Reg. 16379, effective October 25,

1994; amended in R94-16 at 18 Ill. Reg. 16929, effective November 15, 1994;

amended in R94-21, R94-31 and R94-32 at 19 Ill. Reg. 6823, effective May 9, 1995;

amended in R94-33 at 19 Ill. Reg. 7344, effective May 22, 1995; amended in R95-2 at

19 Ill. Reg. 11066, effective July 12, 1995; amended in R95-16 at 19 Ill. Reg. 15176,

effective October 19, 1995; amended in R96-5 at 20 Ill. Reg. 7590, effective May 22,

1996; amended in R96-16 at 21 Ill. Reg. 2641, effective February 7, 1997; amended in

R97-17 at 21 Ill. Reg. 6489, effective May 16, 1997; amended in R97-24 at 21 Ill.

Reg. 7695, effective June 9, 1997; amended in R96-17 at 21 Ill. Reg. 7856, effective

June 17, 1997; amended in R97-31 at 22 Ill. Reg. 3497, effective February 2, 1998;

amended in R98-17 at 22 Ill. Reg.11405, effective June 22, 1998; amended in R01-9 at

25 Ill. Reg. 128, effective December 26, 2000; amended in R01-11 at 25 Ill. Reg.

4597, effective March 15, 2001; amended in R01-17 at 25 Ill. Reg.

, effective .

BOARD NOTE: This Part implements the Illinois Environmental Protection Act as of

July 1, 1994.

SUBPART B: DEFINITIONS

Section 211.4067 NOx Trading Program

For the purposes of 35 Ill. Adm. Code 217, Subparts U and W, the NOx Trading

Program shall mean the requirements of 35 Ill. Adm. Code 217, Subparts U and W,

and those provisions of the federal NOx Trading Program, 40 CFR 96, incorporated by

reference therein.

(Source: Added at 25 Ill. Reg.________________, effective_________________)

Section 211.6130 Source

"Source" means any stationary source (or any group of stationary sources) that are

located on one or more contiguous or adjacent properties that are under common

control of the same person (or persons under common control) and that belongs to a

single major industrial grouping. For the purposes of defining "source," a stationary

source or group of stationary sources shall be considered part of a single major

---

27

industrial grouping if all of the pollutant emitting activities at such source or group of

sources located on contiguous or adjacent properties and under common control belong

to the same Major Group (i.e., all have the same two-digit code) as described in the

Standard Industrial Classification Manual, 1987

(incorporated by reference in 35 Ill.

Adm. Code 218.112 and 219.112),

or such pollutant emitting activities at a stationary

source (or group of sources) located on contiguous or adjacent properties and under

common control constitute a support facility

as defined in Section 39.5 of the

Environmental Protection Act [415 ILCS 5/39.5].

The determination as to whether any

group of stationary sources are located on contiguous or adjacent properties, and/or

are under common control, and/or whether the pollutant emitting activities at such

group of stationary sources constitute a support facility shall be made on a case by case

basis

[415 ILCS 5/39.5].

(Source: Amended at 25 Ill. Reg._______________, effective_________________)

TITLE 35: ENVIRONMENTAL PROTECTION

SUBTITLE B: AIR POLLUTION

CHAPTER I: POLLUTION CONTROL BOARD

SUBCHAPTER c : EMISSION STANDARDS AND LIMITATIONS FOR

STATIONARY SOURCES

PART 217

NITROGEN OXIDES EMISSIONS

SUBPART A: GENERAL PROVISIONS

Section

217.100 Scope and Organization

217.101 Measurement Methods

217.102 Abbreviations and Units

217.103 Definitions

217.104 Incorporations by Reference

SUBPART B: NEW FUEL COMBUSTION EMISSION SOURCES

Section

217.121 New Emission Sources

SUBPART C: EXISTING FUEL COMBUSTION EMISSION SOURCES

Section

217.141 Existing Emission Sources in Major Metropolitan Areas

SUBPART K: PROCESS EMISSION SOURCES

Section

217.301 Industrial Processes

---

28

SUBPART O: CHEMICAL MANUFACTURE

Section

217.381 Nitric Acid Manufacturing Processes

SUBPART T: CEMENT KILNS

Section

217.400 Applicability

217.402 Control Requirements

217.404 Testing

217.406 Monitoring

217.408 Reporting

217.410 Recordkeeping

SUBPART U: NOx CONTROL AND TRADING PROGRAM FOR

SPECIFIED NOx GENERATING UNITS

Section

217.450 Purpose

217.452 Severability

217.454 Applicability

217.456 Compliance Requirements

217.458 Permitting Requirements

217.460 Subpart U NOx Trading Budget

217.462 Methodology for Obtaining NOx Allocations

217.464 Methodology for Determining NOx Allowances from the New Source

Set-Aside

217.466 NOx Allocations Procedure for Subpart U Budget Units

217.468 New Source Set-Asides for “New” Budget Units

217.470 Early Reduction Credits (ERCs) for Budget Units

217.472 Low-Emitter Requirements

217.474 Opt-In Units

217.476 Opt-In Process

217.478 Opt-In Budget Units: Withdrawal from NOx Trading Program

217.480 Opt-In Units: Change in Regulatory Status

217.482 Allowance Allocations to Opt-In Budget Units

SUBPART V: ELECTRIC POWER GENERATION

Section

217.521 Lake of Egypt Power Plant

217.700 Purpose

217.702 Severability

217.704 Applicability

217.706 Emission Limitations

217.708 NOx Averaging

---

29

217.710 Monitoring

217.712 Reporting and Recordkeeping

SUBPART W: NOx TRADING PROGRAM FOR ELECTRICAL

GENERATING UNITS

Section

217.750 Purpose

217.752 Severability

217.754 Applicability

217.756 Compliance Requirements

217.758 Permitting Requirements

217.760 NOx Trading Budget

217.762 Methodology for Calculating NOx Allocations for Budget Electrical

Generating

Units (EGUs)

217.764 NOx Allocations for Budget EGUs

217.768 New Source Set-Asides for “New” Budget EGUs

217.770 Early Reduction Credits for Budget EGUs

217.774 Opt-In Units

217.776 Opt-In Process

217.778 Budget Opt-In Units: Withdrawal from NOx Trading Program

217.780 Opt-In Units: Change in Regulatory Status

217.782 Allowance Allocations to Budget Opt-In Units

SUBPART X: VOLUNTARY NOx EMISSIONS REDUCTION PROGRAM

Section

217.800 Purpose

217.805 Emission Unit Eligibility

217.810 Participation Requirements

217.815 NOx Emission Reductions and the Subpart X NOx Trading Budget

217.820 Baseline Emissions Determination

217 825 Calculation of Creditable NOx Emission Reductions

217.830 Limitations on NOx Emission Reductions

217.835 NOx Emission Reduction Proposal

217.840 Agency Action

217.845 Emissions Determination Methods

217.850 Emissions Monitoring

217.855 Reporting

217.860 Recordkeeping

217.865 Enforcement

Appendix A Rule into Section Table

Appendix B Section into Rule Table

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30

Appendix C Compliance Dates

Appendix D Non-Electrical Generating Units

Appendix E Large Non-Electrical Generating Units

Appendix F Allowances for Electrical Generating Units

Authority: Implementing Sections 9.9 and 10 and authorized by Sections 27 and 28.5

of the Environmental Protection Act [415 ILCS 5/9.9, 10, 27 and 28.5].

Source: Adopted as Chapter 2: Air Pollution, Rule 207: Nitrogen Oxides Emissions,

R71-23, 4 PCB 191, April 13, 1972, filed and effective April 14, 1972; amended at 2

Ill. Reg. 17, p. 101, effective April 13, 1978; codified at 7 Ill. Reg. 13609; amended in

R01-9 at 25 Ill. Reg. 128, effective December 26, 2000; amended in R01-11 at 25 Ill.

Reg. 4597, effective March 15, 2001; amended in R01-16 and R01-17 at 25 Ill.

Reg.________, effective______________.

SUBPART U: NOx CONTROL AND TRADING PROGRAM FOR

SPECIFIED NOx GENERATING UNITS

Section 217.450 Purpose

The purpose of this Subpart is to cap the emissions of nitrogen oxides (NOx) during the

ozone control period from units subject to the provisions of this Subpart (budget units)

by determining source allocations and by implementing the federal NOx Trading

Program, 40 CFR 96, consistent with the provisions of this Subpart.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.452 Severability

If any Section, subsection or clause of this Subpart is found invalid, such finding shall

not affect the validity of this Subpart as a whole or any Section, sentence or clause not

found invalid.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.454 Applicability

a) This Subpart applies to any fossil fuel-fired stationary boiler, combustion

turbine, or combined cycle system, with a maximum design heat input

greater than 250 mmbtu/hr and that is:

1) A unit listed in Appendix E of this Subpart, irrespective of any

subsequent changes in ownership, unit designation, or name of

the unit; or

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31

2) A unit not listed in Appendix E of this Subpart that:

A) At no time serves a generator producing electricity for

sale;

B) At any time serves a generator producing electricity for

sale, if such generator has a nameplate capacity of 25

MWe or less and has the potential to use no more than

50% of the potential electrical output capacity of the unit.

Fifty percent of a unit’s potential electrical output capacity

shall be determined by multiplying the unit’s maximum

design heat input by 0.0488 MWe/mmbtu. If the size of

the generator is smaller than this calculated number, the

unit is subject to the provisions of this Subpart, but if the

size of the generator is greater than this calculated

number, the unit is subject to the provisions of Subpart W

of this Part;

C) Is part of any source, as that term is defined in 35 Ill.

Adm. Code Section 211.6130, listed in Appendix E of this

Part; or

D) Is a unit subject to Subpart W of this Part (excluding any

unit listed in Appendix F of this Part, regardless of any

change in ownership or any change of operator), and the

owner or operator makes a permanent election, at the time

of applying for a budget permit pursuant to this Part, to

subject the unit to the requirements of this Subpart rather

than Subpart W of this Part. Any unit for which such an

election is made will not receive an allocation from the

Subpart U or Subpart W NOx Trading Budget.

b) Those units that meet the above criteria and are subject to the NOx

Trading Program emissions limitations contained in this Subpart are

budget units.

c) Low-emitter status: Notwithstanding subsection (a) of this Section, the

owner or operator of a budget unit subject to the requirements of

subsection (a) of this Section may elect low-emitter status by obtaining a

permit with federally enforceable conditions that meet the requirements

of Section 217.472(a). Starting with the effective date of such permit,

the unit shall be subject only to the requirements of Section 217.472.

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32

d) The owner or operator of any budget unit not listed in Appendix E of

this Part but subject to this Subpart shall not receive an allocation of NOx

allowances from the Subpart U or Subpart W NOx Trading Budget,

except for any allowance from the new source set-aside in accordance

with Section 217.468 of this Subpart. Such unit must acquire NOx

allowances in an amount not less than the NOx emissions from such

budget unit during the control period (rounded to the nearest whole ton)

in accordance with the federal NOx Trading Program, Subpart X of this

Part or pursuant to a permanent transfer of NOx allocations pursuant to

Section 217.462(b) of this Subpart.

e) Notwithstanding any other provisions of this Subpart, a source and units

at the source subject to the provisions of subsection (a) of this Section

will become subject to this Subpart on

the first day of the control season

subsequent to the calendar year in which all of the other states subject to

the provisions of the NO

x

SIP Call

(63 Fed. Reg. 57355 (October 27,

1998))

that are located in USEPA Region V or are that contiguous to

Illinois have adopted regulations to implement NO

x

trading programs

and other required reductions of NO

x

emissions pursuant to the NO

x

SIP

Call, and such regulations have received final approval by USEPA as

part of the respective states’ SIPs for ozone, or a final FIP for ozone

promulgated by USEPA is effective

. [415 ILCS 5/9.9(f)]

(Source: Added at 25 Ill. Reg. , effective )

Section 217.456 Compliance Requirements

All budget units subject to the requirements of this Subpart must comply with the

following:

a) The requirements of this Subpart and 40 CFR 96, excluding 40 CFR

96.4(b), 96.55(c) and subparts C, E, and I, as incorporated by reference

in Section 217.104 of this Part. To the extent that this Subpart contains

provisions which are inconsistent with any provisions of 40 CFR 96, the

owner or operator of budget units subject to this Subpart shall comply

with the provisions of this Subpart in lieu of those provisions which were

incorporated by reference.

b) Budget permit requirements:

1) The owner or operator of each source with one or more budget

units at the source subject to this Subpart must submit a complete

permit application for a budget permit in accordance with the

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33

provisions of Section 217.458(a)(4), (a)(5) or (a)(6), as

applicable, to be issued by the Agency with federally enforceable

conditions covering the NOx Trading Program (budget permit),

and that complies with the requirements of Section 217.458 of

this Subpart.

2) The owner or operator of one or more budget units subject to this

Subpart must operate each such budget unit in compliance with

such budget permit or complete budget permit application, as

applicable.

3) The owner or operator of one or more budget units subject to this

Subpart, at the time of filing an application for a permit under

this Section, must submit a complete application for either a

permit incorporating a source-wide overdraft account (as such

term is defined in 40 CFR 96.2), or a permit incorporating unit

specific compliance accounts for each budget unit at the source

subject to this Subpart. Such election shall be at the sole

discretion of the owner or operator of the source and the Agency

shall incorporate such election into a permit issued to the source

pursuant to this Subpart.

c) Monitoring requirements:

1) For budget units subject to the requirements of this Subpart, and

which commence operation on and after January 1, 2000, the

owner or operator of each such budget unit at the source must

comply with the monitoring requirements of 40 CFR 96, subpart

H. The account representative of each such budget unit at the

source shall comply with those sections of the monitoring

requirements of 40 CFR 96, subpart H, applicable to an account

representative.

2) The compliance of each budget unit subject to the requirements of

subsection (c)(1) or subsection (c)(3)(A) of this Section with the

control period NOx emissions limitation under subsection (d) of

this Section shall be determined by the emissions measurements

recorded and reported in accordance with 40 CFR 96, subpart H.

3) For budget units which commenced operation prior to January 1,

2000:

A) The owner or operator of each such budget unit at the

source

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34

must comply with the requirements of 40 CFR 96, subpart

H; or

B) If the monitoring requirements of 40 CFR 96, subpart H,

are demonstrated by the source to be technically infeasible

as applied to a budget unit subject to the requirements of

this Subpart, the owner or operator of such budget unit

may monitor by an alternative monitoring procedure for

the budget unit approved by the Agency and the

Administrator of USEPA pursuant to the provisions of 40

CFR 75, subpart E. Such alternative monitoring

procedures must be contained as federally enforceable

conditions in the unit’s permit.

4) The compliance of each budget unit subject to the requirements of

subsection (c)(3)(B) of this Section shall be determined by the

emissions measurements recorded and reported in accordance

with the federally enforceable conditions in the budget unit’s

permit addressing monitoring as required by subsection (c)(3)(B)

of this Section.

d) Allowance requirements:

1) As of November 30 of each year, the allowance transfer deadline,

the account representative of each source subject to the

requirements of this Subpart must hold allowances available for

compliance deductions under 40 CFR 96.54 for each budget unit

at the source subject to this Subpart in the budget unit’s

compliance accounts, or the source's overdraft account. The

number of allowances held in these accounts shall not be less than

the total NOx emissions for the control period (rounded to the

nearest whole ton), as determined in accordance with subsection

(c) of this Section, plus any number of allowances necessary to

account for actual utilization (e.g., for testing, start-up,

malfunction, and shut down) under 40 CFR 96.42(e) for all

budget units at the source subject to this Subpart. Compliance

with this provision shall be demonstrated if, as of the allowance

transfer deadline, the sum of the allowances available for

compliance deductions for all budget units at the source subject to

this Subpart is equal to or greater than the total NOx emissions

(rounded to the nearest whole ton) from all budget units at the

source subject to this Subpart.

2) Allowances shall be held in, deducted from, or transferred among

---

35

allowance accounts in accordance with this Subpart and 40 CFR

96, subparts F and G.

3) Each ton of NOx emitted by a source with one or more budget

units subject to this Subpart in any control period in excess of the

NOx allowances held by the owner or operator for each budget

unit at the source subject to this Subpart for each control period

shall constitute a separate violation of this Subpart and the Act.

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

this Section, an allowance may not be utilized for a control period

in a year prior to the year for which the allowance was allocated.

5) An allowance allocated by the Agency or USEPA under the NOx

Trading Program is a limited authorization to emit one ton of

NOx. No provision of the NOx Trading Program, any permit

issued or permit application submitted pursuant to this Subpart, or

an exemption under 40 CFR 96.5 and no provision of law shall

be construed to limit the authority of the United States or the

State to terminate or limit this authorization.

6) An allowance allocated by the Agency or USEPA under the NOx

Trading Program or pursuant to this Subpart does not constitute a

property right.

7) Upon recordation by USEPA under 40 CFR 96, subpart F or G,

every allocation, transfer, or deduction of an allowance to or

from a budget unit's compliance account or to or from the

source's general or overdraft account where the budget unit is

located is deemed to amend automatically and become a part of

any budget permit of the budget unit. This automatic amendment

of the budget permit shall occur by operation of law and will not

require any further review.

e) Recordkeeping and reporting requirements:

1) Unless otherwise provided, the owner or operator of a source

subject to the requirements of this Subpart must keep at the

source each of the documents listed in subsections (e)(1)(A)

through (e)(1)(D) of this Section for a period of 5 years from the

date the document is created. This period may be extended for

cause at any time prior to the end of 5 years in writing by the

Agency or USEPA.

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36

A) The account certificate of representation for the account

representative for the source and each budget unit at the

source subject to the requirements of this Subpart and all

documents that demonstrate the truth of the statements in

the account certificate of representation, in accordance

with 40 CFR 96.13, provided that the certificate and such

supporting documents must be retained on site at the

source beyond such five-year period until such documents

are superseded because of the submission of a new

account certificate of representation changing the account

representative.

B) All emissions monitoring information, in accordance with

subsection (c) of this Section, provided that to the extent

that

40 CFR 96, subpart H, provides for a three-year period

for recordkeeping, the three-year period shall apply.

C) Copies of all reports, compliance certifications, and other

submissions and all records made or required under this

Subpart or the NOx Trading Program or documents

necessary to demonstrate compliance with the

requirements of this Subpart or the NOx Trading Program.

D) Copies of all documents used to complete a budget permit

application and any other submission under this Subpart or

under the NOx Trading Program.

2) The account representative of a source and each budget unit at the

source subject to the requirements of this Subpart must submit to

the Agency and USEPA the reports and compliance certifications

required under this Subpart and the NOx Trading Program,

including those under 40 CFR 96, subparts D and H.

f) Liability:

1) No revision of a budget permit shall excuse any violation of the

requirements of the NOx Trading Program or this Subpart that

occurs prior to the date that the revision under such budget permit

takes effect.

2) Each budget source and each budget unit at the source shall meet

the requirements of the NOx Trading Program.

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37

3) Any provision of this Subpart or the NOx Trading Program that

applies to a source subject to the requirements of this Subpart

(including a provision applicable to the account representative of

the source) shall also apply to the owner and operator of such

source and to the owner and operator of the budget units subject

to the requirements of this Subpart at the source.

4) Any provision of this Subpart or the NOx Trading Program that

applies to a budget unit subject to the requirements of this

Subpart (including a provision applicable to the account

representative of such budget unit) shall also apply to the owner

and operator of such budget unit. Except with regard to the

requirements applicable to budget units with a common stack

under 40 CFR 96, subpart H, the owner and operator and the

account representative of one budget unit shall not be liable for

any violation by any other budget unit of which they are not an

owner or operator or the account representative and that is

located at a source of which they are not an owner or operator or

the account representative.

5) Excess emissions requirements: The account representative of a

source that has excess emissions in any control period shall

surrender the allowances as required for deduction under 40 CFR

96.54(d)(1).

6) The owner or operator of a budget EGU that has excess

emissions in any control period shall pay any fine, penalty, or

assessment or comply with any other remedy imposed under 40

CFR 96.54(d)(3) and the Act.

g) Effect on other authorities: No provision of this Subpart, the NOx

Trading Program, a budget permit application, a budget permit, or a

retired budget unit exemption under 40 CFR 96.5 shall be construed as

exempting or excluding the owner or operator and, to the extent

applicable, the account representative of a source or budget unit from

compliance with any other regulations promulgated under the CAA, the

Act, an approved State implementation plan, or a federally enforceable

permit.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.458 Permitting Requirements

a) Budget permit requirements:

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38

1) The owner or operator of each source with one or more budget

units subject to this Subpart is required to timely submit, in

accordance with subsection (a)(4), (a)(5), or (a)(6) of this

Section, as applicable, a complete permit application addressing

all requirements of this Subpart applicable to such budget units.

2) Each budget permit (including a draft or proposed budget permit,

if applicable) shall contain federally enforceable conditions

addressing all applicable requirements of the NOx Trading

Program and requirements of this Subpart and shall be a complete

and segregable portion of the source’s entire permit.

3) No budget permit will be issued, and no NOx allowance account

will be established for any budget unit subject to this Subpart,

until the Agency and USEPA have received a complete account

certificate of representation under 40 CFR 96, subpart B, for an

account representative of the source and each budget unit at the

source subject to this Subpart.

4) For any budget unit subject to this Subpart that commenced

operation before November 1, 2003, and for which a CAAPP

permit is not required pursuant to Section 39.5 of the Act, the

owner or operator of such budget unit must submit a budget

permit application meeting the requirements of this Subpart on or

before November 1, 2003.

5) For any budget unit subject to this Subpart that commenced

operation before August 1, 2003, and for which a CAAPP permit

is required pursuant to Section 39.5 of the Act, the owner or

operator of such budget unit must submit a budget permit

application meeting the requirements of this Subpart on or before

August 1, 2003.

6) For any budget unit subject to this Subpart that is subject to

Section 39.5 of the Act and that commences operation on or after

August 1, 2003, and for any budget unit subject to this Subpart

and not subject to Section 39.5 of the Act that commences

operation on or after November 1, 2003, the owner or operator

of such budget units must submit applications for construction

and operating permits pursuant to the requirements of Sections 39

and 39.5 of the Act and 35 Ill. Adm. Code 201 and such

applications must specify that they are applying for budget

---

39

permits, and must address the budget permit application

requirements of this Subpart.

b) Budget permit applications:

1) Duty to apply: The owner or operator of any source with one or

more budget units subject to this Subpart must submit to the

Agency one or more complete budget permit applications under

subsection (b)(2) of this Section for such budget units by the

applicable deadline in subsection (a)(4), (a)(5), or (a)(6) of this

Section. The owner or operator of any source with such budget

units must reapply for a budget permit as required by this

Subpart, and 35 Ill. Adm. Code 201 and Sections 39 and 39.5 of

the Act.

2) Information requirements for budget permit applications: A

complete budget permit application must include the following

elements concerning the budget units for which the application is

submitted:

A) Identification of the source, including plant name. The

ORIS (Office of Regulatory Information Systems) or

facility code assigned to the source by the Energy

Information Administration must also be included, if

applicable;

B) Identification of each fossil fuel-fired combustion turbine,

stationary boiler or combined cycle system budget unit at

the source;

C) An explanation why each budget unit is subject to the

requirements of Section 217.454 of this Subpart; and

D) The compliance requirements of Section 217.456 of this

Subpart.

3) Federally enforceable status of budget permit: An application for

a budget permit shall be treated as a modification of the source's

existing federally enforceable permit, if such permit has been

issued for the source, and shall be subject to the same procedural

requirements as the original application. When the Agency issues

a budget permit, it shall be incorporated into and become a

segregable part of the source's existing federally enforceable

permit.

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40

(Source: Added at 25 Ill. Reg. , effective )

Section 217.460 Subpart U NOx Trading Budget

a) The initial NOx allowances available for allocation for each control

period (the Subpart U NOx Trading Budget) for budget units subject to

the provisions of this Subpart shall be 4,882 tons per control period,

subject to adjustment in accordance with subsections (b), (c) and (d) of

this Section, and subject to the new source set-aside for budget units

subject to this Subpart, as set forth in Sections 217.462 and 217.464 of

this Subpart. The Subpart U NOx Trading Budget shall be initially

allocated as set forth in Appendix E of this Part.

b) The Agency may adjust the Subpart U NOx Trading Budget available for

allocations in subsection (a) of this Section by adding allowances for

budget units subject to this Subpart opting to become subject to this

Subpart pursuant to the requirements for opt-in units in Sections 217.474

and 217.476 of this Subpart.

c) The Agency shall adjust the Subpart U NOx Trading Budget available for

allocations in subsection (a) of this Section to remove allowances from

units opting to become exempt pursuant to the requirements for low-

emitters in Sections 217.454(c) and 217.472 of this Subpart.

d) Except as set forth in subsection (e) of this Section, if USEPA adjusts the

base Subpart U NOx Trading Budget of 4,882 allowances, the Agency

will adjust the Subpart U NOx Trading Budget pro-rata.

e) If USEPA adjusts the Subpart U NOx Trading Budget as to any

individual budget unit, the Subpart U NOx Trading Budget shall not be

adjusted pro-rata, and only the allowance allocation for that budget unit

will be adjusted.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.462 Methodology for Obtaining NOx Allocations

a) Appendix E of this Part identifies the sources with existing budget units

subject to this subpart and the number of NOx allowance allocations that

each such budget unit is eligible to receive each control period, subject to

adjustment in accordance with Section 217.460 of this subpart and for

transfers made in accordance with subsection (b) of this section. Each

named budget unit’s allocation will be adjusted proportionally based on

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41

the adjusted Subpart U NOx Trading Budget as provided by Section

217.460 of this Subpart.

b) The owner or operator of budget units subject to this Subpart may

permanently transfer all or part of their allocation of allowances pursuant

to Column 5 of Appendix E of this part, subject to adjustment in

accordance with this Subpart, to another budget unit subject to this

Subpart, or to a budget unit subject to Subpart W of this Part. Such

transfer will be effective by submitting a written request to the Agency

that is signed by the account representative for the transferring budget

unit and containing the account number for the recipient budget unit.

The owner or operator of budget units subject to this Subpart may not

permanently transfer all or part of the new source set-aside indicated as

the difference between Column 4 and Column 5 of Appendix E of this

Part.

c) Subject to adjustment in accordance with this Subpart, or revocation or

revision of the federal NOx Trading Program or this Subpart, allocations

pursuant to Appendix E of this Part exist for the life of the program,

including all or a portion of any allocation transferred to another budget

unit pursuant to the provisions of this Subpart.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.464 Methodology for Determining NOx Allowances from the New

Source Set-Aside

a) The methodology for calculating the allowances available to be allocated

to new budget units subject to this Subpart from the new source set-aside

is based on the more stringent emission rate of 0.15 lbs/mmbtu or the

permitted NOx emission rate, but not less than 0.055 lbs/mmbtu.

b) The general equation for determining allowances is:

A

= HI

x

ER

2000

Where HI = heat input (in mmbtu/control period) as determined

in

accordance with subsection (c) of this Section.

Where ER = The NOx emission rate in lbs/mmbtu as determined

in

accordance with subsection (a) of this Section.

---

42

Where A = allowances of NOx/control period.

c) The projected heat input shall be determined as set forth below, divided

by 2000 lbs/ton:

1) For “new” budget units subject to this Subpart that have seasonal

heat input from at least 3 control periods prior to the allocation

year, the average of the budget unit's 2 highest seasonal heat

inputs from the control periods 1 to 3 years prior to the allocation

year;

2) For “new” budget units subject to this Subpart that have seasonal

heat input from only 2 control periods prior to the allocation

year, the average of the budget unit's seasonal heat inputs from

the control periods 1 and 2 years prior to the allocation year;

3) For “new” budget units subject to this Subpart that have seasonal

heat input from only the control period prior to the allocation

year, the heat input from that control period; or

4) For “new” budget units subject to this Subpart that have not

operated for at least 77 days of the control period prior to the

allocation year, the budget unit's maximum design heat input for

the control period as designated in the construction permit.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.466 NOx Allocations Procedure for Subpart U Budget Units

For each control period, the Agency will allocate the total number of NOx allowances

in the Subpart U NOx Trading Budget apportioned to budget units under Section

217.460 of this Subpart, subject to adjustment as provided in this Subpart. These

allocations will be issued as provided in subsections (a) and (b) of this Section, as

follows:

a) The Agency will allocate to each budget unit that is listed in Appendix E

of this Part the number of allowances listed in Column 5 of Appendix E

of this Part for that budget unit for each 3-year period of the program.

The Agency will report these allocations to USEPA by March 1 of 2004,

and triennially thereafter.

b) The Agency will allocate allowances from the new source set-aside to

"new" budget units as set forth in Section 217.468 of this Subpart.

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43

c) The Agency will report allocations from the new source set-aside to

USEPA by April 1 of each year for the following year.

d) To the extent that allowances remain in the new source set-aside after

any allocation pursuant to subsection (b) of this Section, the Agency shall

allocate any such remaining allowances pro-rata to the owner or operator

of the budget units listed in Appendix E of this Part to the extent a whole

allowance may be allocated to any such owner or operator. The Agency

will make such allocation by April 15 of each year. If there are

insufficient allowances to allocate a whole allowance to any such owner

or operator of a budget unit listed in Appendix E of this Part, such

allowances shall be retained by the Agency in the new source set-aside.

Any such allowances retained in the new source set-aside shall be

accumulated in the new source set-aside and may either:

1) Be available for allocation to new budget units for future control

periods, subject to the provisions of Section 217.468 of this

Subpart; or

2) If, after any annual allocation to new budget units, there are

sufficient allowances accumulated in the new source set-aside to

allocate one or more whole allowances to the owner or operator

of existing budget units listed in Appendix E of this Part on a

pro-rata basis, such accumulated whole allowances shall be

allocated pro-rata to such owner or operators.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.468 New Source Set-Asides for “New” Budget Units

a) For the 2004, 2005 and 2006 control periods, a "new" budget unit is one

that commenced commercial operation on or after January 1, 2000. For

the 2007 and later control periods, a "new" budget unit is one that

commenced commercial operation no more than 3 control periods prior

to the year the allocation is requested pursuant to this Section. Those

units that commenced commercial operation on or after January 1, 2000,

but before May 31, 2004, become "existing" budget units on October 1,

2004. Those units that commenced commercial operation on or after

May 31, 2004, become "existing" budget units the end of the third

control period after they commenced commercial operation.

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44

b) “New” budget units must have an allowance for every ton of NOx

emitted during the control period as provided in Section 217.456(d) of

this Subpart.

c) The Agency will establish a new source set-aside for each control period

from which "new" budget units may purchase NOx allowances. Each

new source set-aside will be allocated allowances equal to 3% of each

source's initial total Subpart U NOx Trading Budget allocation as

reflected in Column 5 of Appendix E of this Part, which is 146

allowances, for each control period. The allocation for the new source

set-aside from each source shall be based on 3% of the source's initial

allocation, without regard to subsequent adjustment to any such source's

current allocation, including permanent transfer of allowances to another

source or revision of the Subpart U NOx Trading Budget by USEPA.

d) A “new” budget unit may request to purchase from the Agency a number

of allowances that is not more than the number of allowances for which

it is eligible, as determined in Section 217.464 of this Subpart, and

subject to the provisions of this Section.

e) The account representative of a “new” budget unit under subsection (a)

of this Section may purchase allowances from the new source set-aside

by submitting to the Agency a request, in writing or in a format specified

by the Agency, to be allocated allowances for the current control period

from the new source set-aside. The allocation request for each

applicable control period must be submitted after the date on which the

Agency issues a construction permit to the "new" budget unit and before

February 1 of the control period for which the allocation is requested.

f) The Agency will notify the account representative by March 1 of the

applicable year of the number of allowances that are eligible for purchase

for the “new” budget unit pursuant to the requirements of this Section.

If the Agency does not receive payment by March 15 of the applicable

year, the account representative will forfeit his/her eligibility to purchase

the allowances offered. The Agency will make available for purchase

those forfeited allowances on a pro-rata basis to “new” budget units

requesting allocations pursuant to this Section, up to the number of

allowances requested by each account representative. Such additional

allocations are subject to the purchase requirements of subsection (g) of

this Section.

g) The price of allowances from the new source set-aside shall be:

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45

1) For 2004 only, the price shall be the average price at which NOx

allowances were traded in 2003 in the Ozone Transport Region;

and

2) For all years other than 2004, the average price at which NOx

allowances were traded in the interstate NOx Trading Program for

the preceding control period.

h) The fees collected by the Agency from the sale of allowances will be

distributed pro-rata to budget units receiving allowances pursuant to

Appendix E of this Part on the basis of allocated allowances, subject to

Agency administrative costs assessed pursuant to Section 9.9 of the Act.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.470 Early Reduction Credits (ERCs) for Budget Units

If a budget unit reduces its NOx emission rate as required by the applicable provisions

of subsection (c) of this Section in the 2001 or 2002 control period, or if approved by

USEPA the 2003 control period, for use in 2004 control period, or later control periods

authorized by USEPA, the account representative may request early reduction credits

(ERCs) for such reductions, and the Agency will allocate ERCs to the budget unit in

accordance with the following:

a) Each budget unit for which the account representative requests any ERCs

under subsection (d) of this Section must monitor NOx emissions in

accordance with 40 CFR 96, subpart H, as incorporated by reference in

Section 217.104 of this Part, starting with the control period prior to the

control period for which ERCs will first be requested and for each

control period for which ERCs will be requested. For example, if ERCs

are requested for reductions made in the 2001 control period, the budget

unit must have implemented the applicable monitoring for the 2000

control period. The budget unit’s monitoring system availability must be

at least 90 % during the control period prior to the control period in

which the NOx emissions reduction is made and the budget unit must be

in compliance with any applicable State or federal emissions or

emissions-related requirements.

b) The NOx emission rate and heat input under subsections (c) through (e)

of this Section shall be determined in accordance with 40 CFR 96,

subpart H.

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46

c) Each budget unit for which ERCs are requested under subsection (d) of

this Section must have reduced its NOx emission rate for each control

period for which ERCs are requested by 30% or more below the actual

NOx emissions rate (lbs/mmbtu) for the first control period in which

ERC’s are requested.

d) The account representative of a budget unit that meets the requirements

of subsections (a) through (c) of this Section may submit to the Agency a

request for ERCs for the budget unit based on NOx emission rate

reductions made by the budget unit in control periods 2001, 2002 and

2003.

1) The number of ERCs that may be requested for any applicable

control period shall be an amount equal to the budget unit’s heat

input for such control period multiplied by the difference between

the budget unit's NOx emission rate (meeting the requirements of

subsection (c) of this Section for the applicable control period)

and the budget unit's actual NOx emission rate for the applicable

control period, divided by 2000 lbs/ton, and rounded to the

nearest ton;

2) Upon request of the account representative, the ERC allowance

allocation for a particular budget unit may be deposited in the

source’s overdraft account rather than in the budget unit’s

compliance account; and

3) The early reduction request must be submitted by November 1

for reductions made in the previous control period, in a format

specified by the Agency.

e) In the event that the May 31, 2004 date for implementing the NOx SIP

Call is delayed, the early reduction request must be submitted in

accordance with any rulemaking or guidance by USEPA on the

distribution of the Compliance Supplement Pool under the NOx SIP Call,

63 Fed. Reg.57356 (October 27, 1998).

f) The Agency will allocate ERCs to the budget units meeting the

requirements of subsections (a) through (c) of this Section and covered

by ERC requests meeting the requirements of subsection (d) of this

Section in accordance with the following procedures:

1) The Agency shall allocate no more than 2,427 ERCs over three

years, as follows:

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A) Not more than one-half of the total ERC allowances for

reductions made in the control period in 2001;

B) Not less than one-half of the total ERC allowances for

reductions made in the control period in 2002; and

C) If approved by USEPA, any ERC allowances not allocated

pursuant to subsection (f)(1)(A) or (B) of this Section, for

reductions made in the control period in 2003.

2) If the number of ERC allowances requested for a reduction

achieved in any control period is less than or equal to the number

of ERC allowances designated for that control period in

subsection (f)(1) of this Section, the Agency will allocate one

allowance for each accepted ERC request; and

3) If the number of ERC allowances requested for a reduction

achieved in any control period is greater than the number of ERC

allowances designated for that control period in subsection (f)(1)

of this Section, the Agency will allocate allowances for accepted

requests on a pro-rata basis.

g) By April 1, the Agency will notify the account representative submitting

an ERC request for the subsequent control period of the number of ERC

allowances that will be allocated to each budget unit for that control

period.

h) By May 1, 2004, the Agency will submit to USEPA the ERC allocations

made by the Agency under this Section. USEPA will record such

allocations to the extent that they are consistent with the requirements of

this Section.

i) ERC allowances recorded under subsection (h) of this Section may be

deducted under 40 CFR 96.54, as incorporated by reference in Section

217.104 of this Part, for the control period in 2004 or such control

periods as may be specified by USEPA. Notwithstanding 40 CFR

96.55(a), USEPA will deduct as retired any ERC allowances that are not

deducted for compliance in accordance with 40 CFR 96.54 for the

control period in 2004 or such control periods as may be specified by

USEPA.

j) ERC allowances are treated as banked allowances in 2004 for the

purposes of 40 CFR 96.55(a) and (b).

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48

(Source: Added at 25 Ill. Reg. , effective )

Section 217.472 Low-Emitter Requirements

Starting with the effective date of the permit referred to in Section 217.454(c), the

budget unit electing low-emitter status shall be subject only to the requirements of this

Section.

a) For each control period the owner or operator elects low-emitter status,

the federally enforceable permit conditions must:

1) Restrict the unit to burning only natural gas, fuel oil, or natural

gas and fuel oil;

2) Limit the unit's potential NOx mass emissions for the control

period to 25 tons or less;

3) Restrict the unit's operating hours to the number calculated by

dividing 25 tons of potential NOx mass emissions by the unit's

maximum potential hourly NOx mass emissions;

4) Require that the unit's potential NOx mass emissions shall be

calculated by using the monitoring provisions of 40 CFR 75, or if

the unit does not rely on these monitoring provisions, as follows:

A) Select the applicable default NOx emission rate:

0.7 lbs/mmbtu for combustion turbines burning natural

gas exclusively during the control period; 1.2 lbs/mmbtu

for combustion turbines burning any fuel oil during the

control period; 1.5 lbs/mmbtu for boilers burning natural

gas exclusively during the control period; or 2 lbs/mmbtu

for boilers burning any fuel oil during the control period.

B) Multiply the default NOx emission rate under subsection

(a)(4)(A) of this Section by the unit's maximum rated

hourly heat input which is the higher of the

manufacturer’s maximum rated hourly heat input or the

highest observed hourly heat input. The owner or

operator of the unit may request in the permit application

required by this subsection that the Agency use a lower

value for the unit's maximum rated hourly heat input.

The Agency may approve such lower value if the owner

or operator demonstrates that the maximum hourly heat

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input specified by the manufacturer or the highest

observed hourly heat input, or both, are not

representative. The owner or operator must demonstrate

that such lower value is representative of the unit's current

capabilities because modifications have been made to the

unit that permanently limit the unit’s capacity;

5) Require that for 5 years at the source that includes the unit,

records demonstrating that the operating hours restriction, the

fuel use restriction and the other requirements of the permit

related to these restrictions were met; and

6) Require that the owner or operator of the unit report to the

Agency for each control period the unit's hours of operation

(treating any partial hour of operation as a whole hour of

operation), heat input and fuel use by type. This report shall be

submitted by November 1 of each year the unit elects low-emitter

status.

b) The Agency will notify the USEPA in writing of each unit electing low-

emitter status pursuant to the requirements of subsection (a) of this

Section and when any of the following occurs:

1) The permit with federally enforceable conditions that includes the

restrictions in subsection (a) of this Section is issued by the

Agency;

2) Such permit is revised to remove any such restriction;

3) Such permit includes any such restriction that is no longer

applicable; or

4) The unit does not comply with any such restriction.

c) The unit shall become subject to the requirements of this Subpart if, for

any control period under this Section, the fuel use restriction or the

operating hours restriction under subsection (a) of this Section is

removed from the unit's permit or otherwise is no longer applicable, or

the unit does not comply with the fuel use restriction or the operating

hours restriction under subsection (a) of this Section. Such unit shall be

treated as commencing operation on September 30 of the control period

for which the fuel use restriction or the operating hours restriction is no

longer applicable or during which the unit does not comply with the fuel

use restriction or the operating hours restriction.

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d) The owner or operator of a unit to which the Agency has ever allocated

allowances under Appendix E of this Part may elect low-emitter status.

In that case, the Agency will reduce the Subpart U NOx budget by the

number of allowances equal to the amount of NOx emissions the unit is

permitted to emit during the control period, pursuant to a federally

enforceable condition in the unit’s permit. The owner or operator of a

unit electing low-emitter status may demonstrate that it holds sufficient

allowances to cover the unit’s NOx emissions by offsetting the emissions

from such unit, not to exceed its permitted emission limit as included in

its federally enforceable permit, with allowances issued for voluntary

NOx reductions meeting the requirements of Subpart X of this Part. The

Agency will not reduce the Subpart U NOx budget by the allowances

issued for NOx reductions obtained in accordance with Subpart X of this

Part.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.474 Opt-In Units

a) Any operating fossil fuel-fired stationary boiler, combustion turbine,

combined cycle system, cement kiln or stationary internal combustion

engine in the State may qualify under this Subpart to become an opt-in

budget unit if it:

1) Is not a budget EGU under Subpart W of this Part;

2) Vents all of its emissions to a stack;

3) Has documented heat input for more than 876 hours in the six

months immediately preceding the submission of an application

for an initial budget permit under subsection (d) of this Section;

4) Is not covered by a retired unit exemption under 40 CFR 96.5;

and

5) Is not covered by the low-emitter exemption under Section

217.454(c) of this Subpart.

b) Except as otherwise provided in this Subpart, an opt-in budget unit shall

be treated as a budget unit for purposes of applying this Subpart and 40

CFR 96.

c) Authorized Account Representative:

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1) If an opt-in unit is located at the same source as one or more

budget units, it shall have the same account representative as

those budget units.

2) If the opt-in unit is not located at the same source as one or more

budget units, the owner or operator of the opt-in unit shall submit

a complete account certificate of representation under 40 CFR

96.13.

d) To apply for a budget permit, the account representative of a unit

meeting the qualifications of subsection (a) of this Section must, except

as provided under Section 217.478(f) of this Subpart, submit to the

Agency:

1) A budget permit application for the unit that:

A) Meets the requirements under Section 217.458 of this

Subpart; and

B) Contains provisions for a change in the regulatory status

of the unit to an opt-in budget unit under Section 217.454

of this Subpart pursuant to the provisions of Section

217.480(b) of this Subpart.

2) A monitoring plan for the unit in accordance with 40 CFR 96,

subpart H.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.476 Opt-In Process

The Agency will issue or deny a budget permit for an opt-in unit in accordance with

Section 217.458 of this Subpart and the following:

a) The Agency will determine, on an interim basis, the sufficiency of the

monitoring plan accompanying the initial application for a budget permit

for an opt-in unit. A monitoring plan is sufficient, for purposes of

interim review, if the plan contains information demonstrating that the

NOx emission rate and heat input of the unit are monitored and reported

in accordance with 40 CFR 96, subpart H. A determination of

sufficiency shall not be construed as acceptance or approval of that unit's

monitoring plan.

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b) If the Agency determines that the unit's monitoring plan is sufficient

under subsection (a) of this Section and after completion of the

monitoring system certification under 40 CFR 96, subpart H, the NOx

emission rate and the heat input of the unit shall be monitored and

reported in accordance with 40 CFR 96, subpart H, for one full control

period during which the monitoring system availability is not less than

90% and during which the unit is in full compliance with any applicable

State or federal emissions or emissions-related requirements.

c) Based on the information monitored and reported under subsection (b) of

this Section, the unit's baseline heat rate shall be calculated as the unit's

total heat input (in mmbtu) for the control period, and the unit's baseline

NOx emission rate shall be calculated as the unit's total NOx emissions

(in lbs) for the control period divided by the unit's baseline heat rate.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.478 Opt-In Budget Units: Withdrawal from the NOx Trading

Program

a) Requesting withdrawal: To withdraw from the NOx Trading Program,

the account representative of an opt-in budget unit shall submit to the

Agency a request to withdraw from the NOx Trading Program and to

withdraw the budget permit effective as of a specified date between (and

not including) September 30 and May 1. The submission shall be made

no later than 90 days prior to the requested effective date of withdrawal.

b) Conditions for withdrawal: Before an opt-in budget unit may withdraw

from the NOx Trading Program and the budget permit may be withdrawn

under this Section, the following conditions must be met:

1) For the control period immediately before the withdrawal is to be

effective, the account representative must submit to the Agency

an annual compliance certification report in accordance with 40

CFR 96.30.

2) If the opt-in budget unit has excess emissions for the control

period immediately before the withdrawal is to be effective,

USEPA has deducted from the opt-in budget unit's compliance

account, or the overdraft account of the NOx budget source where

the opt-in budget unit is located, the number of allowances

required in accordance with 40 CFR 96.54(d) for the control

period.

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3) After the requirements for withdrawal under subsections (b)(1)

and (2) of this Section are met, USEPA will deduct from the opt-

in unit's compliance account, or the overdraft account of the

budget source where the opt-in budget unit is located, allowances

equal in number to any allowances allocated to that unit under

Section 217.782 of this Subpart for the control period for which

the withdrawal is to be effective and earlier control periods.

USEPA will close the opt-in budget unit's compliance account

and will establish, and transfer any remaining allowances to, a

new general account for the owners and operators of the opt-in

unit. The account representative for the opt-in budget unit shall

become the account representative for the general account.

c) An opt-in budget unit that withdraws from the Subpart U NOx Trading

Program shall comply with all requirements under the NOx Trading

Program concerning all years for which such opt-in budget unit was an

opt-in budget unit, even if such requirements arise or must be complied

with after the withdrawal takes effect.

d) Notification:

1) After the requirements for withdrawal under subsections (a) and

(b) of this Section are met (including deduction of the full amount

of allowances required), the Agency will revise the budget permit

indicating a specified effective date for the withdrawal that is

after the requirements in subsections (a) and (b) of this Section

have been met and that is prior to May 1 or after September 30.

2) If the requirements for withdrawal under subsections (a) and (b)

of this Section are not met, the Agency will issue a notification to

the owner or operator and the account representative of the opt-in

budget unit that the opt-in unit's request to withdraw its budget

permit is denied. If the opt-in budget unit's request to withdraw

is denied, the opt-in budget unit shall remain subject to the

requirements for an opt-in budget unit.

e) Reapplication upon failure to meet conditions of withdrawal: If the

Agency denies the opt-in budget unit's request to withdraw, the account

representative of the opt-in budget unit may submit another request to

withdraw in accordance with subsections (a) and (b) of this Section.

f) Ability to return to the NOx Trading Program: Once an opt-in unit

withdraws from the NOx Trading Program and its budget permit is

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54

withdrawn under this Section, the account representative may not submit

another application for a budget permit under Section 217.474(d) of this

Subpart for the unit prior to the date that is four years after the date on

which the budget permit with opt-in conditions is withdrawn.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.480 Opt-In Units: Change in Regulatory Status

a) Notification: When an opt-in unit becomes an opt-in budget unit under

Section 217.476 of this Subpart, the owner or operator shall notify the

Agency and USEPA in writing of such change in the opt-in unit's

regulatory status within 30 days of such change.

b) Any permit application that provides for a change in the regulatory status

of a unit to an opt-in budget unit pursuant to Section 217.474(d)(1)(B) of

this Subpart and included in a budget permit, is effective on the date on

which such opt-in unit becomes an opt-in budget unit under Section

217.454 of this Subpart.

c) USEPA's action:

1) USEPA will deduct from the compliance account for the opt-in

budget unit under this Section, or the overdraft account of the

budget source where the opt-in budget unit is located, allowances

equal in number to and allocated for the same or a prior control

period as:

A) Any allowances allocated to the budget unit (as an opt-in

unit) under Section 217.482 of this Subpart for any

control period after the last control period during which

the unit's budget permit was effective; and

B) If the effective date of any budget permit under subsection

(b) of this Section is during a control period, the

allowances allocated to the opt-in budget unit (as an opt-in

unit) under Section 217.482 of this Subpart for the control

period multiplied by the ratio of the number of days in the

control period, starting with the effective date of the

budget permit under subsection (b) of this Section, divided

by the total number of days in the control period.

2) The account representative shall ensure that the compliance

account of the opt-in budget unit under subsection (b) of this

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Section, or the overdraft account of the budget source where the

opt-in budget unit is located, contains the allowances necessary

for completion of the deduction under subsection (c)(1) of this

Section. If the compliance account or overdraft account does not

contain sufficient allowances, USEPA will deduct the required

number of allowances, regardless of the control period for which

they were allocated, whenever allowances are recorded in either

account.

3) For every control period during which any budget permit under

subsection (b) of this Section is effective, the opt-in budget unit

under subsection (b) of this Section will be treated, solely for

purposes of allowance allocations under Section 217.466 or

217.468 of this Subpart, as a unit that commenced operation on

the effective date of the budget permit under subsection (b) of this

Section and will be allocated allowances in accordance with

Section 217.466 or 217.468 of this Subpart.

4) Notwithstanding subsection (c)(2) of this Section, if the effective

date of any budget permit under subsection (b) of this Section is

during a control period, the following number of allowances will

be allocated to the opt-in budget unit for the control period: the

number of allowances otherwise allocated to the opt-in budget

unit under Section 217.466 or 217.468 of this Subpart for the

control period multiplied by the ratio of the number of days in the

control period, starting with the effective date of the budget

permit under subsection (b) of this Section, divided by the total

number of days in the control period.

d) When the owner or operator of an opt-in unit does not renew the budget

permit for the opt-in budget unit issued pursuant to Section 217.474(d),

USEPA will deduct from the opt-in budget unit's compliance account, or

the overdraft account of the budget source where the opt-in budget unit is

located, allowances equal in number to and allocated for the same or a

prior control period as any allowances allocated to the opt-in budget unit

under Section 217.482 of this Subpart for any control period after the

last control period for which the budget permit is effective. The account

representative shall ensure that the opt-in budget unit's compliance

account or the overdraft account of the budget source where the opt-in

budget unit is located contains the allowances necessary for completion

of such deduction. If the compliance account or overdraft account does

not contain sufficient allowances, USEPA will deduct the required

number of allowances, regardless of the control period for which they

were allocated, whenever allowances are recorded in either account.

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e) After the deduction under subsection (d) of this Section is completed,

USEPA will close the opt-in unit's compliance account. If any

allowances remain in the compliance account after completion of such

deduction and any deduction under 40 CFR 96.54, USEPA will close the

opt-in unit's compliance account and will establish, and transfer any

remaining allowances to, a new general account for the owner or

operator of the opt-in unit. The account representative for the opt-in unit

shall become the account representative for the general account.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.482 Allowance Allocations to Opt-In Budget Units

a) Allowance allocations:

1) By the December 31 immediately before the first control period

for which the budget permit is effective, the Agency will allocate

allowances to the opt-in budget unit and submit to USEPA the

allocation for the control period in accordance with subsection (b)

of this Section.

2) By no later than the December 31 after the first control period for

which the budget permit is in effect and December 31 of each

year thereafter, the Agency will allocate allowances to the opt-in

budget unit and submit to USEPA allocations for the next control

period, in accordance with subsection (b) of this Section.

b) For the first control period, and for each subsequent control period for

which the opt-in budget unit has a budget permit, the opt-in budget unit

will be allocated allowances in accordance with the following

procedures:

1) The heat input (in mmbtu) used for calculating allowance

allocations will be the lesser of:

A) The opt-in unit's baseline heat input determined pursuant

to Section 217.476(c) of this Subpart; or

B) The opt-in unit's heat input, for the control period in the

year prior to the year of the first control period for which

the allocations are being calculated, as determined in

accordance with 40 CFR 96, subpart H.

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57

2) The Agency will allocate allowances to the opt-in budget unit in

an amount equaling the heat input (in mmbtu) determined under

subsection (b)(1) of this Section multiplied by the lesser of:

A) The unit's baseline NOx emission rate (in lbs/mmbtu)

determined pursuant to Section 217.476(c) of this Subpart;

or

B) The lowest NOx emissions limitation (calculated in

lbs/mmbtu) under State or federal law that is applicable to

the budget opt-in unit for the year of the control period for

which the allocations are being calculated, regardless of

the averaging period to which the emissions limitation

applies.

(Source: Added at 25 Ill. Reg. , effective )

SUBPART X: VOLUNTARY NOx EMISSIONS REDUCTION PROGRAM

Section 217.800 Purpose

The purpose of this Subpart is to implement Section 9.9(d)(3) of the Act by providing a

method by which additional NOx allowances may be generated for use by emission

units subject to the requirements of Subparts U or W of this Part. [415 ILCS

5/9.9(d)(3)]

(Source: Added at 25 Ill. Reg. , effective )

Section 217.805 Emission Unit Eligibility

Any owner or operator of a stationary source may submit a proposal, as provided in

Section 217.835 of this Subpart, for voluntarily reducing NOx emissions during the

control period, if each emission unit from which NOx reductions at the source will be

obtained meets the following criteria:

a) Discharges through a stack;

b) Is fossil fuel-fired;

c) Is not subject to the requirements of Subparts T, U, V or W of this Part;

d) Is not a retired unit pursuant to 40 CFR 96.5;

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e) Has not elected to become an opt-in unit pursuant to Section 217.754 or

Section 217.774 of this Part; and

f) Is not a stationary internal combustion engine that emits more than one

ton of NOx per day during the ozone control period.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.810 Participation Requirements

a) Any owner or operator of a source (emission reduction source) with one

or more emission units meeting the requirements of Section 217.805 of

this Subpart and seeking to make quantifiable, verifiable and federally

enforceable voluntary reductions of NOx emissions during the control

period from one or more emission units (emission reduction units) must

comply with the following requirements:

1) Submit a NOx emission reduction proposal that meets the

requirements of Section 217.835 of this Subpart;

2) Request an emission cap on NOx emissions from all NOx

emission units at the emission reduction source that are not

otherwise subject to Subparts U or W of this Part, and that are

the same type of emission unit as the emission reduction unit

(e.g., if the emission reduction unit is a boiler, combined cycle

system or turbine, then the emission cap must include all boilers,

combined cycle systems or turbines that are not otherwise subject

to Subparts U or W of this Part, or if the emission unit is a

cement kiln, then the emission cap must include all cement kilns),

provided, however, the owner or operator of the source may

submit a demonstration in accordance with Section 217.835 of

this Subpart that any like-kind emission unit or units should not

be included in the NOx emission cap;

3) Demonstrate how the NOx emission cap required by subsection

(a)(2) of this Section is to be determined, in accordance with

Sections 217.820 and 217.845 of this Subpart, which cap reflects

the NOx emission reduction specified in the proposal;

4) Permit requirements:

A) Obtain a permit, or an amendment to an existing permit,

for the source, with federally enforceable conditions

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containing the commitments in the NOx emission

reduction proposal and the emissions cap by the later of

May 1, 2003, or the date on which the reduction in NOx

emissions will commence and operate the source in

compliance with such permit; or

B) For each emission unit that will be generating voluntary

NOx emissions by ceasing operation, withdrawing the

applicable permit, or requesting a revision to the permit to

reflect the shut down of the emission reduction unit, by

the later of May 1, 2003, or the date specified in the NOx

reduction proposal.

5) Submit an emissions baseline determination for each unit subject

to the NOx emission cap in accordance with the requirements of

Section 217.820 of this Subpart.

6) Monitoring requirements:

A) To the extent applicable, each emission reduction unit at

the source shall comply with the monitoring requirements

of Section 217.850 of this Subpart.

B) The emissions measurements recorded and reported in

accordance with Sections 217.850 and 217.855 of this

Subpart shall be used to determine compliance by the

emission reduction unit with the emissions limitation set

forth in the NOx emission reduction proposal and the

federally enforceable permit conditions required pursuant

to subsection (a)(4) of this Section.

C) The emissions measurements recorded and reported in

accordance with Sections 217.850 and 217.855 of this

Subpart shall be used to determine compliance by the

emission reduction source with the emissions cap set forth

in the NOx emission reduction proposal and the federally

enforceable permit condition required pursuant to

subsection (a)(4) of this Section.

b) The owner or operator of the emission reduction source is required to

submit an annual certification to the Agency that the source has complied

with the cap on NOx emissions for the source and that the NOx emission

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reductions specified in the approved proposal were made pursuant to the

requirements of Section 217.850 of this Subpart.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.815 NOx Emission Reductions and the Subpart X NOx Trading Budget

a) NOx emission reductions may be recognized under this Subpart if they

are quantifiable, verifiable, and federally enforceable, and meet one or

more of the following criteria:

1) Due to the use of any NOx emission reduction technology (e.g.,

combustion or post combustion control technology or fuel

switching) at the emission reduction unit pursuant to federally

enforceable conditions in the permit for the unit addressing such

control technology or fuel switching, NOx emissions from the

emission reduction unit for any control period beginning in 2003

are or will be lower than such unit's emissions baseline. The

amount of actual NOx emission reductions shall be determined in

accordance with Section 217.820 of this Subpart, and the amount

of creditable NOx emission reductions shall be determined in

accordance with Section 217.825 of this Subpart;

2) The emission reduction unit is permanently shut down after

January 1, 1995, and the owner or operator requests a revision to

the relevant operating permit to reflect the shut down of the

emission reduction unit. The amount of actual NOx emission

reductions shall be determined in accordance with Section

217.820 of this Subpart, and the amount of creditable NOx

emission reductions shall be determined in accordance with

Section 217.825 of this Subpart;

3) During any control period beginning in 2003, the emission

reduction unit's control period NOx emission rate or hours of

operation is reduced pursuant to federally enforceable conditions

in a permit for such unit, resulting in an actual reduction in NOx

emissions from such unit’s emissions baseline. The amount of

actual NOx emission reductions shall be determined in accordance

with Section 217.820 of this Subpart, and the amount of

creditable NOx emission reductions shall be determined in

accordance with Section 217.825 of this Subpart.

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b) USEPA shall adjust the State’s trading portion of the statewide NOx

budget, as established in the NOx SIP Call, 63 Fed. Reg. 57356 (October

27, 1998), and create allowances for the creditable portion, as set forth

in Section 217.825 of this Subpart, of verifiable, quantifiable, and

federally enforceable NOx emission reductions meeting the requirements

of this Subpart (the Subpart X NOx Trading Budget), and allowances

from the Subpart X NOx Trading Budget shall be allocated to recipient

emission units in accordance with this Subpart.

c) The Agency shall submit an allocation to USEPA for the creditable

portion of verifiable, quantifiable, and federally enforceable NOx

emission reductions meeting the requirements of this Subpart, which

allocation may be used for the purposes of demonstrating compliance

with the requirements of Subparts U and W of this Part.

d) If USEPA adjusts or fails to adjust the Subpart X NOx Trading Budget as

to any individual emission reduction unit, the Subpart X NOx Trading

Budget shall not be adjusted pro-rata, and only the allowance allocation

for that emission reduction unit will be adjusted.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.820 Baseline Emissions Determination

a) An emission unit's emissions baseline shall be determined as follows:

1) By multiplying the unit's actual emissions during the 1995

calendar year, as reported in the annual emission report submitted

in accordance with 35 Ill. Adm. Code 254, by 5/12ths; or

2) If the NOx emissions from the unit were not included in the

emission reduction source's 1995 annual emissions report

submitted to the Agency pursuant to 35 Ill. Adm. Code 254, by

determining the base case amount included for such unit in the

NOx SIP Call inventory, as specified in the "Technical Support

Document for Illinois' Statewide NOx Budget "

(63 Fed. Reg. 17349 (Nov. 7, 1997)).

b) If the NOx baseline emissions for the 1995 control period cannot be

determined by the either of the methods listed in subsection (a)(1) or (2)

of this Section, such actual NOx baseline emissions shall be determined

based on the average emission rate multiplied by the average number of

hours of operation from two of the three control periods, as selected by

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62

the emission reduction source, prior to the year the emission reduction

proposal is effective. The unit's emission rate and hours of operation

will be determined based on the unit's reported NOx emission rate and

hours of operation in the most recent annual emission reports for such

unit submitted in accordance with 35 Ill. Adm. Code 254.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.825 Calculation of Creditable NOx Emission Reductions

For actual NOx emission reductions achieved pursuant to Section 217.815(a) of this

Subpart,

the gross amount of control period actual NOx emission reductions shall be determined

pursuant to Section 217.820 of this Subpart. Eighty percent of the actual NOx emission

reductions achieved pursuant to Section 217.815(a) shall be creditable. Twenty percent

of the actual NOx emission reductions shall be retired for the benefit of air quality.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.830 Limitations on NOx Emission Reductions

a) Each NOx allowance issued for NOx emission reductions meeting the

requirements of this Subpart is a limited authorization to emit one ton of

NOx in accordance with the federal NOx Trading Program as set forth in

Subpart U or W of this Part, as applicable. No provision of the federal

NOx Trading Program, the emission reduction proposal, the permit

application, the permit, or of law shall be construed to limit the authority

of the United States or the State to terminate or limit such authorization.

b) Any NOx allowance issued in accordance with this Subpart does not

constitute a property right.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.835 NOx Emission Reduction Proposal

a) A NOx emission reduction proposal shall include the following:

1) Information identifying each emission unit at the source that emits

NOx, whether the unit is subject to Subpart T, U, V ,W or X of

this Part, and the baseline emissions for each emission unit

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63

subject to the NOx emission cap as determined in accordance with

Section 217.820 of this Subpart;

2) Information identifying each emission reduction unit from which

the NOx emission reductions have been or will be achieved;

3) An explanation of the method used to achieve the NOx emission

reductions;

4) The amount of the NOx emission reductions, including supporting

calculations and documentation, such as fuel usage information;

5) The emission units subject to the NOx emission cap in accordance

with Section 217.810(a) of this Subpart, and if all like-kind or

same-type emission units are not proposed to be included within

the NOx emission cap, an explanation of how the owner or

operator of the emission reduction source will ensure that

production shifting will not occur, such that the emission

reduction source will achieve real, verifiable, and quantifiable

NOx emission reductions;

6) The control period NOx emission cap to be achieved by the

emission reduction source, including both the baseline emissions

for each recipient unit subject to the NOx emission cap and the

NOx emission reductions from the emission reduction units

included in the proposal;

7) The name and address of the owner or operator of each emission

unit to which the NOx allowances will be allocated, the Subpart

of this Part (i.e, Subpart U or W) to which each unit is subject,

including the name, telephone number, and account number of

the account representative for each such unit; and

8) Certification by the owner or operator of each unit that is the

subject of each proposed emission reduction proposal of his/her

acceptance of the terms of the proposal and certification that the

emission reductions specified in the proposal have been or will be

achieved.

b) The owner or operator of a source submitting an emission reduction

proposal must notify the Agency in writing within 30 days of any event

or circumstance that makes the NOx emission reduction proposal

incorrect or incomplete.

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64

c) The owner or operator of a source with an approved emission reduction

proposal may request to withdraw its emission reduction proposal, and

cease to create NOx allowances under this Subpart, as follows:

1) Requesting withdrawal: To withdraw from participation under

this Subpart, the owner or operator of an emission reduction unit

shall submit to the Agency a written request to withdraw from

participation and to withdraw or revise the applicable permit

effective as of a specified date between (and not including)

September 30 and May 1. The submission shall be made no later

than 90 days prior to the requested effective date of withdrawal.

2) Conditions for withdrawal: Before an emission reduction source

may withdraw its approved emission reduction proposal, and the

federally enforceable permit may be withdrawn under this

Section, the owner or operator must submit to the Agency an

annual compliance certification report in accordance with Section

217.855 of this Subpart for the control period immediately before

the withdrawal is to be effective.

3) An emission reduction source that withdraws from this Subpart

shall comply with all requirements under its approved emission

reduction proposal and federally enforceable permit conditions

addressing such proposal concerning all years for which the

emission reduction source was in the program, even if such

requirements arise or must be complied with after the withdrawal

takes effect.

4) Notification:

A) After the requirements for withdrawal under subsections

(a) and (b) of this Section are met, the Agency will revise

the permit indicating a specified effective date for the

withdrawal that is after the requirements in subsections (a)

and (b) of this Section have been met and that is prior to

May 1 or after September 30.

B) If the requirements for withdrawal under subsections (a)

and (b) of this Section are not met, the Agency will issue

a notification to the owner or operator of the emission

reduction source that the request to withdraw its permit is

denied. If the request to withdraw is denied, the source

shall remain subject to the requirements of its approved

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65

emission reduction proposal and federally enforceable

permit conditions addressing the proposal and the

requirements of this Subpart.

5) Reapplication upon failure to meet conditions of withdrawal: If

the Agency denies the request of the owner or operator of the

emission reduction source's request to withdraw, the owner or

operator of the source may submit another request to withdraw in

accordance with subsections (a) and (b) of this Section.

6) Upon successful withdrawal from the program, the emission

reduction source shall no longer be subject to the provisions of

this Subpart.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.840 Agency Action

a) The Agency shall notify the owner or operator submitting a NOx

emission reduction proposal in writing of its decision with respect to the

proposal within 90 days after receipt of such proposal and, if applicable,

of NOx emissions data to verify that the specified reductions have

occurred. The owner or operator of the emission reduction source may

extend the deadline for Agency action in writing. If the Agency

disapproves or conditionally approves a proposal, this written notice

shall include a statement of the specific reasons for the disapproval or

conditional approval of the proposal. The following shall be considered

a final Agency action for the purposes of appeal: if the Agency fails to

take action within such 90 day period, subject to any extension, or if the

Agency disapproves a proposal. If the Agency conditionally approves a

proposal, the owner or operator of the emission reduction source has 30

days to submit a modified proposal addressing the specific items listed by

the Agency. If the owner and operator of the emission reduction source

does not submit a modified emission reduction proposal within such 30

day period, the conditional approval shall be deemed to be a disapproval,

and shall be deemed to be a final action for purposes of appeal.

b) The NOx emissions reduction proposal will not be effective until:

1) After the owner or operator of the emission reduction source has

obtained or modified a permit with federally enforceable

conditions addressing the requirements of this Subpart; or

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66

2) If NOx emission reductions are being obtained by the shut down

of an emission reduction unit, the owner or operator of the

emission reduction unit has either:

A) Obtained or modified a permit with federally enforceable

conditions addressing the requirements of this Subpart; or

B) Withdrawn the applicable permit and the Agency has:

i) Provided USEPA with a copy of the proposal and

notice of the Agency’s proposed approval of the

emission reduction proposal, and USEPA has not

disapproved such proposal;

ii) Published notice and offered an opportunity to

comment, pursuant to 35 Ill. Adm. Code 252, on

such permit withdrawal, its proposed approval of

the emission reduction proposal for the shut down

of the emission reduction unit and the creditable

NOx emission reductions that will be created by the

shut down.

c) If the Agency approves the proposal, and subject to the provisions of

subsection (b) of this Section, the Agency shall submit an allocation to

USEPA for the creditable reductions created pursuant to the

requirements of this Subpart subject to the following:

1) Any allowances generated pursuant to this Subpart shall be issued

to the recipient emission unit identified in the proposal, for each

control period in which the NOx emissions reductions are

verified, and the requirements of this Subpart continue to be met;

2) The owner or operator of the emission reduction source has, by

the November 1 following the control period that the emission

reduction unit has reduced NOx emissions, verified the NOx

emission reductions in accordance with Section 217.845 of this

Subpart, and obtained a permit containing federally enforceable

conditions addressing the requirements of this Subpart;

3) The allowances shall be issued by May 1 after the control period

in which the reduction has occurred, for use in any future control

period.

(Source: Added at 25 Ill. Reg. , effective )

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67

Section 217.845 Emissions Determination Methods

The owner or operator of an emission reduction source must demonstrate that it has

obtained the NOx emission reductions, and has not exceeded its NOx emission cap, as

specified in its approved NOx emission reduction proposal, as follows:

a) If the NOx emission reductions are generated pursuant to Section

217.815(a)(1) of this Subpart, the NOx emission rate for each emission

reduction unit shall be determined as follows:

1) Through the use of continuous emissions monitoring in

accordance with Section 217.850 of this Subpart; or

2) Through the use of any test methods and procedures provided in

40 CFR 60 and approved by the Agency, or any other method

approved by the Agency when included as federally enforceable

conditions in a permit issued or revised pursuant to this Subpart.

b) If the NOx emission reductions are generated pursuant to Section

217.815(a)(3) of this Subpart, submit an initial compliance demonstration

plan to the Agency 120 days prior to the control period date that the

emission reduction unit will commence NOx emission reductions in

compliance with an approved emissions reduction proposal. Such

demonstration shall be based on the actual NOx emission rate measured

in accordance with Section 217.850 of this Subpart.

c) If the emission reduction unit's compliance with the NOx emission

reduction proposal is determined in accordance with subsection (a)(2) of

this Section, conducting an initial test 90 days prior to the date the

specified emission reductions will be obtained, or within 45 days of the

Agency's request for NOx emission reductions already obtained, and

notifying the Agency in writing of any test performed to comply with the

requirements of this Subpart at least 30 days prior to the test. The

Agency may at any time require annual control period testing of any

emission unit at the NOx emission reduction source, and may require

such testing as part of its approval of a NOx emission reduction proposal.

d) By the November 1 following each control period in which NOx

emission reductions are generated, the owner or operator of an emission

reduction source must:

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68

1) Submit a compliance certification, including supporting data, that

the NOx emission cap, as specified in its approved NOx emission

reduction proposal, has not been exceeded; and

2) Monitor and report the NOx emissions during each control period

from all NOx emission units at the source subject to the NOx

emission cap in accordance with Sections 217.850 and 217.855 of

this Subpart.

e) The owner or operator of an emission reduction source shall, 120 days

prior to the date that the emission reduction source will commence NOx

emission reductions in compliance with an approved emissions reduction

proposal, submit to the Agency a performance evaluation for each

CEMS using the applicable performance specifications in 40 CFR 60,

Appendix B, as incorporated by reference in Section 217.104 of this

Part.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.850 Emissions Monitoring

a) The owner or operator of an emission reduction source shall install,

calibrate, maintain, and operate during the control period on each NOx

emission unit at the source subject to the NOx emission cap a continuous

emission monitoring system (CEMS), or an alternative approved by the

Agency and included in a federally enforceable permit condition, for

measuring NOx emissions to the atmosphere.

b) The CEMS shall be operated and data recorded during all periods of

operation of the emission unit at the source during the control period,

except for periods of CEMS breakdowns and repairs as provided in

subsection (e) of this Section.

c) CEMS quality assurance data must be recorded during calibration checks

and zero and span adjustments.

d) The 1-hour average NOx emissions measured by the CEMS shall be:

1) Expressed in lbs/hr or in lbs/mmbtu and heat input;

2) Calculated using the data points required under 40 CFR 60.13, as

incorporated by reference in Section 217.104 of this Subpart; and

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69

3) Calculated using at least two data points separated by a minimum

of 15 minutes (where the unit operates for more than one quarter

of an hour) if data are unavailable as a result of the performance

of calibration, quality assurance, or preventive maintenance

activities.

e) The procedures under 40 CFR 60.13, as incorporated by reference in

Section 217.104 of this Subpart, shall be followed for installation,

evaluation, and operation of each CEMS.

f) For monitoring systems measuring NOx in lbs/hr, if NOx emission data

are not obtained because of CEMS breakdown, repairs, calibration

checks, or zero and span adjustments, NOx emission data shall be

obtained by using the data substitution procedures contained in 40 CFR

75, subpart D, incorporated by reference in Section 217.104 of this Part.

g) For monitoring systems measuring NOx in lbs/mmbtu, if NOx emission

data are not obtained because of CEMS breakdown, repairs, calibration

checks, or zero and span adjustments, NOx emission data shall be

obtained by using the rolling hourly average of emission data recorded

for the previous 30 day period of operation if the data capture for such

period is 95% or greater and the period of missing data is equal to or

less than 24 consecutive hours. If the data capture for such previous 30

day period is less than 95% or the period of missing data is greater than

24 consecutive hours, the data shall be obtained by using the highest

hourly average recorded during the previous 30 days of operation.

h) The CEMS shall be subject to the quality assurance procedures and

requirements of 40 CFR 60, Appendix F, incorporated by reference in

Section 217.104 of this Part.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.855 Reporting

a) By the November 1 of each year beginning in 2003, or the year of the

first control period for which NOx emission reductions were generated in

accordance with this Subpart, an owner or operator of an emission

reduction source must, as a seasonal component of the annual emission

report for the source pursuant to 35 Ill. Adm. Code 254, report to the

Agency the total control period NOx emissions of each NOx emission

unit at the source subject to the NOx emission cap.

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70

b) Within 30 days after receipt of such data or evaluation, the owner or

operator of each emission reduction source shall submit to the Agency

the performance test data from the initial performance test for each

emission reduction unit and the performance evaluation for each CEMS

using the applicable performance specifications in 40 CFR 60, Appendix

B, as incorporated by reference in Section 217.104 of this Part.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.860 Recordkeeping

a) The owner or operator of an emission reduction source shall keep and

maintain the following records for each NOx emission unit at the source

subject to the NOx emission cap:

1) Daily, monthly, and control period operating hours;

2) Type and quantity of each fuel used daily during the control

period;

3) Control period capacity factor of individual fuels fired and all

fuels fired;

4) Monitoring records; and

5) To the extent applicable, the performance test data from the

initial performance test for each emission reduction unit and the

performance evaluation for each CEMS using the applicable

performance specifications in 40 CFR 60, Appendix B, as

incorporated by reference in Section 217.104 of this Part.

b) The owner or operator of an emission reduction source shall maintain

records of the following information for each operating day for each NOx

emission unit subject to the NOx emission cap:

1) Calendar date;

2) The average hourly NOx mass emission rate expressed as

lbs/hr;

3) The control period total NOx mass emissions to date;

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71

4) Identification of times when emission data have been

excluded from the calculation of NOx mass emissions, the

reasons for excluding the data, and any corrective actions

taken;

5) Identification of the times when the pollutant

concentration exceeded full span of the CEMS;

6) Description of any modifications to the CEMS that could

affect the ability of the CEMS to comply with the

Performance Specifications in 40 CFR 60, Appendix B;

and

7) Results of daily CEMS drift tests and quarterly accuracy

assessments as required under 40 CFR 60, Appendix F.

c) The owner or operator of any NOx emission reduction source subject to

the continuous monitoring requirements for NOx under this Subpart,

shall submit a compliance certification containing the information

recorded under subsection (b) of this Section. All compliance

certification reports shall be postmarked by November 1 or the next

business day if November 1 falls on a Saturday or Sunday, of each

control period in which NOx emission reductions are generated.

d) Maintenance of records: Unless otherwise provided, the owner or

operator of a NOx emission reduction source shall keep on site at the

source, each of the following documents for a period of 5 years from the

date the document is created. This period may be extended for cause, at

any time prior to the end of 5 years, in writing by the Agency.

1) The emission reduction proposal and all documents that

demonstrate the accuracy of the statements in the proposal for

each year the emission reduction source generates NOx reductions

under this Subpart and for 5 years thereafter.

2) All emissions monitoring information required pursuant to this

Subpart; provided that to the extent that 40 CFR 60 provides for

a 3-year period for recordkeeping, the 3-year period shall apply.

3) Copies of all reports, compliance certifications, and other

submissions and all records made or required under this Subpart.

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72

4) Copies of all documents used to complete any permit application

and supporting documents and any other submission to

demonstrate compliance with the requirements of this Subpart.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.865 Enforcement

a) Excess emissions requirements: The owner or operator of an emission

reduction source for which NOx reductions have been recognized

pursuant to this Section and that has excess NOx emissions in any control

period for which NOx allowances have been issued must:

1) For the first control period during which the emission reduction

source has excess NOx emissions, purchase NOx allowances in an

amount equal to 2 times the excess NOx emissions in accordance

with the federal NOx Trading Program and surrender the

allowances to the Agency by December 31 following the control

period in which the emission reduction source had excess

emissions;

2) For the second control period during which the emission

reduction source has excess NOx emissions, purchase allowances

in an amount equal to 3 times the excess NOx emissions in

accordance with the federal NOx Trading Program and surrender

the allowances to the Agency by December 31 following the

control period in which the emission reduction source had excess

emissions;

3) If the emission reduction source has excess NOx emissions for 3

control periods, purchase allowances in an amount equal to 4

times the excess NOx emissions pursuant to the federal NOx

Trading Program and surrender the allowances to the Agency by

December 31 following the control period in which the emission

reduction source had excess emissions, and the NOx emission

reduction proposal shall be automatically revoked. The emission

reduction source will thereafter not be able to generate NOx

emission reductions for which NOx allowances may be issued

under this Subpart.

b) All allowances surrendered to the Agency pursuant to subsections (a)(1)

through (a)(3) of this Section shall be retired to benefit air quality.

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73

c) Nothing in this Subpart limits the authority of the State or the federal

government to seek penalties and injunctive relief for any violation of

this Subpart or any permit condition. Nothing in this Subpart limits the

right of the State or the federal government or any person to directly

enforce against actions or omissions which constitute violations of

permits required by the Act or regulations promulgated thereunder or the

CAA or applicable federal environmental laws and regulations.

(Source: Added at 25 Ill. Reg. , effective )

Section 217.Appendix E Large Non-Electrical Generating Units

COMPANY

ID # /

NAME

UNIT

DESIGNATION

UNIT

DESCRIPTION

BUDGET

ALLOCAT

ION

BUDGET

ALLOCATION

LESS 3% NSSA

1

2 3 4 5

A. E. STALEY MANUFACTURING CO

115015ABX 85070061299 COAL-FIRED

BOILER 1

176 171

115015ABX 85070061299 COAL-FIRED

BOILER 2

175 170

115015ABX 73020084129 BOILER #25 125 121

A. E. STALEY MANUFACTURING CO (Total

Allocation)

476 462

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74

ARCHER DANIELS MIDLAND CO EAST PLANT

115015AAE 85060030081 COAL-FIRED

BOILER 1

238 231

115015AAE 85060030081 COAL-FIRED

BOILER 2

261 253

115015AAE 85060030081 COAL-FIRED

BOILER 3

267 259

115015AAE 85060030082 COAL-FIRED

BOILER 4

276 268

115015AAE 85060030082 COAL-FIRED

BOILER 5

275 267

115015AAE 85060030082 COAL-FIRED

BOILER 6

311 302

115015AAE 85060030083 GAS-FIRED

BOILER 7

19 18

115015AAE 85060030083 GAS-FIRED

BOILER 8

19 18

ARCHER DANIELS MIDLAND CO EAST

PLANT (Total Allocation)

1,666 1,616

CORN PRODUCTS INTERNATIONAL INC

031012ABI 91020069160 GAS-FIRED

BOILER 6

55 53

031012ABI 73020146041 BOILER # 1

COAL-FIRED

210 204

031012ABI 73020146042 BOILER # 2

COAL-FIRED

210 203

031012ABI 73020146043 GAS FIRED

BOILER NO 4

WEST STACK

BLRS

81 79

031012ABI 73020147045 BOILER # 3

COAL-FIRED

211 205

031012ABI 73020147046 GAS FIRED

BOILER NO 5-

EAST STACK

BOILER

81 79

CORN PRODUCTS INTERNATIONAL INC

(Total Allocation)

848 823

GREAT LAKES NTC

097811AAC 78080071011 BOILER # 5 26 25

097811AAC 78080071011 BOILER # 6 26 25

GREAT LAKES NTC (Total Allocation) 52 50

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75

JEFFERSON SMURFIT CORPORATION

119010AAL 72120426001 BLR 7-COAL

FIRED

39 38

JEFFERSON SMURFIT CORPORATION (Total

Allocation)

39 38

MARATHON OIL CO ILLINOIS REFINING DIV

033808AAB 72111291055 BOILER #3

OIL,REF GAS

FIRED

53 51

033808AAB 72111291056 BOILER #4 REF

GAS,OIL FIRED

53 52

MARATHON OIL CO ILLINOIS REFINING DIV

(Total Allocation)

106 103

EXXON MOBIL

197800AAA 72110567002 AUX BOILER-

REFINERY GAS

101 98

197800AAA 86010009043 STATIONARY

GAS TURBINE

85 82

EXXON MOBIL (Total Allocation) 186 180

WILLIAMS

179060ACR 73020087019 BOILER C -

PULVERIZED

DRY BOTTOM

377 366

WILLIAMS (Total Allocation) 377 366

EQUISTAR

063800AAC 72100016013 BOILER # 1 40 39

063800AAC 72100016013 BOILER # 2 40 39

063800AAC 72100016014 #3 GAS FIRED

BOILER

40 39

063800AAC 72100016016 #5 GAS FIRED

BOILER

40 39

063800AAC 72100016017 #6 BOILER 40 38

EQUISTAR (Total Allocation) 200 194

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EQUISTAR

041804AAB 72121207108 BOILER NO 1 121 118

041804AAB 72121207109 BOILER NO 2 121 118

041804AAB 72121207110 BOILER NO 3 121 117

041804AAB 72121207111 BOILER NO 4 120 116

041804AAB 72121207112 BOILER NO 5 0 0

EQUISTAR (Total Allocation) 483 469

TOSCO

119090AAA 72110633080 BOILER NO 15 40 38

119090AAA 72110633081 BOILER NO 16 40 39

119090AAA 72110633082 BOILER NO 17 80 78

TOSCO (Total Allocation) 160 155

U S STEEL - SOUTH WORKS

031600ALZ 82010044013 NO. 6 BOILER,#5

POWER

STATION (FUEL-

NAT.GAS)

90 88

031600ALZ 82010044014 NO 1 BLR NG 90 87

U S STEEL - SOUTH WORKS (Total Allocation) 180 175

UNIV OF ILL - ABBOTT POWER PLANT

019010ADA 82090027006 BOILER #7 86 83

UNIV OF ILL - ABBOTT POWER PLANT (Total

Allocation)

86 83

CITGO PETROLEUM CORPORATION

197090AAI 72110253037 BOILER 43-B-1 23 22

CITGO PETROLEUM CORPORATION (Total

Allocation)

23 22

LTV STEEL COMPANY

301600AMC [UNIT

DESIGNATION]

BOILER NO 4B * *

LTV STEEL COMPANY (Total Allocation) * *

* Pursuant to Section 217.460(f), Column 2, Column 4 and Column 5 will be adjusted

at such time as USEPA makes an allocation for LTV Steel’s Boiler No. 4B.

GRAND TOTAL 4,882 4,736

(Source: Added at 25 Ill. Reg. , effective )

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77

IT IS SO ORDERED.

I, Dorothy M. Gunn, Clerk of the Illinois Pollution Control Board, hereby

certify that the above opinion and order was adopted on the 5th day of April 2001 by a

vote of 7-0.

Dorothy M. Gunn, Clerk

Illinois Pollution Control Board