ILLINOIS POLLUTION CONTROL BOARD
April 5, 2001
IN THE MATTER OF:
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
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R01-17
(Rulemaking – Air)
Adopted Rule. Final Order.
OPINION AND ORDER OF THE BOARD (by M. McFawn):
Today the Board adopts two sets of rules adding two new subparts to Part 217:
Nitrogen Oxides Emissions, of the Board’s air regulations. Subpart U implements
Sections 9.9(b), (c), (d)(2), and (d)(4) of the Environmental Protection Act (Act) (415
ILCS 5/9.9(b), (c), (d)(2), and (d)(4) (1998) (1998 State Bar Edition, 1999 Supp.)) by
capping the emissions of nitrogen oxides (NOx) during the ozone control period (May 1
through September 30 of each year beginning in 2004
1) and implementing the federal
NOx trading program for specified NOx electrical generating units (EGUs). The
existing units subject to this rulemaking under Subpart U are specifically listed on
Appendix E, and are often referred to as large non-EGUs.
Subpart X implements Section 9.9(d) of the Act by providing a method for the
generation of additional NOx allowances to be used by units subject to the requirements
of Subparts U or W. These allowances will be generated by voluntary reductions at
sources other than large EGUs and large non-EGUs. Also adopted today are two
conforming amendments to Part 211: Definitions and General Provisions. The
individual rules are discussed later in this opinion, along with a discussion of the
purpose and applicability of these programs.
The United States Environmental Protection Agency (USEPA) requires 22
States, including Illinois, and the District of Columbia to submit State Implementation
Plan (SIP) revisions to prohibit specified amounts of emissions of NOx for the purpose
of reducing NOx and ozone transport across state boundaries in the eastern half of the
1 Pursuant to a court order, the ozone control period for the 2004 season begins on May
31, 2004. See Michigan v. EPA, 213 F.3d 663 (D.C. Cir., 2000).
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 __.”
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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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
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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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
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.
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
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.
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
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
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
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
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
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.
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
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
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.
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.
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:
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.
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
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.
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.
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:
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.
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:
47
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).
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
49
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.
50
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:
51
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.
52
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.
53
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
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
55
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.
56
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.
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;
58
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
59
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
60
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.
61
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
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
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.
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
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
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 )
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:
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
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.
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;
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.
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.
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
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
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
76
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 )
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