In any regulation of general applicability, there will always be affected sources that say the rule affects them differently than somebody else. However, adding a special provision for SIPC raises the question of what other sources might have issues whereby they did not have “normal” operations during the look-back period – whatever “normal” might mean.
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[G]ranting a special, essentially site-specific, change in the regulation for SIPC opens the door to all other affected regulated entities to request special treatment as well. Id. at 4-5.
IEPA also maintains that giving SIPC special treatment in the rule would be unfair and harm other sources. Because Illinois has a fixed number of allowances, “[a]ny allowance that is given to SIPC must be removed from the allocation for another source – a source that has
demonstrated a need for that allowance using the proper allocation calculation.” PC at 5.
Additionally, IEPA asserts that SIPC’s unit does not need the extra allowances. Based on SIPC’s description of 2005 being its first “normal” year, IEPA estimated the approximate number of allowances SIPC would need for its unit. According to IEPA, the available information indicates that if SIPC:
runs its control device throughout the year, it will easily have enough allowances, based on the draft allocations sent to USEPA by the Illinois EPA and posted on its website, to cover Unit 123. In addition, SIPC will almost certainly receive additional allowances from the CASA. This means SIPC should not only have enough allowances to cover emissions from Unit 123, but also have enough allowances to bank or sell. PC 15 at 4-5 (emphasis in original).
IEPA further disagrees with SIPC’s call for initial allocations to be based solely on heat input. IEPA is aware that the deadline for submitting gross electrical output data has already passed and therefore needs to be modified in the rule. IEPA’s public comment proposes language to remedy that problem. PC 15 at 5. SIPC’s concerns about efficiency, continues IEPA, have been addressed at length in this record. Even though one of SIPC’s boilers may not be as efficient as others in the State, IEPA explains, CFB boilers were considered in the
design of the regulation and:
Any perceived shortfall in allowances allocated to this unit due to differences in efficiency should be exceeded by additional allowances allocated from the CASA. It should also be noted that virtually all electrical generating utility (“EGU”) boilers in Illinois operate pollution control equipment that reduce the overall efficiency of a given unit. This is addressed by the allocation methodology being based on gross electrical output rather than net electrical output. Id. at 5-6.
In addition, IEPA disputes SIPC’s suggestion that IEPA opposes SIPC’s heat input position because IEPA would need to adjust allocations submitted to USEPA. According to IEPA, SIPC has apparently misunderstood IEPA’s reasons for opposition, none of which “have anything to do with previous submittal of allocations nor USEPA’s parallel processing. PC 15 at 6.
IEPA also disagrees with Midwest Generation’s suggestion to add a provision to the CPS designed to correct the determination of the flue gas flow rate for air leaked in between the mercury sorbent injection location and the stack. IEPA notes that the sorbent flow language in the CPS matches equivalent language in the Multi-Pollutant Standard (MPS) at Section 225.233(c)(2)(D). According to IEPA, changing the CPS without likewise changing the MPS would be “inappropriate and unfair to those sources planning to make use of the MPS.” PC 15 at 7. Moreover, continues IEPA, Midwest Generation “has only brought this issue to the Illinois EPA’s attention one week prior to the end of first notice comment period.” Id. at 8. IEPA states therefore that it has not had an opportunity to properly review “the implications of such a change.” Id. IEPA maintains that Midwest Generation’s proposal is a “last-minute modification with unforeseeable consequences.” Id.
Lastly, IEPA proposes a number of clarifications and corrections to the first-notice rule language. According to IEPA, the proposed changes are of four types: (1) changed dates within the CAIR rule to avoid retroactive application; (2) changes based on comments received from USEPA; (3) previously proposed amendments that were inadvertently omitted from first notice; and (4) “some typos that need correction and some clarifications that need to be made.” PC 15 at 7; see also PC 15 at 7-34, Attachments.
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Public Comment 16: Zion
Zion focuses on two elements of the rule as proposed at first notice: fuel-weighting, and the CASA. Zion contends the “the Board has failed to adequately address or reasonably incorporate comments about” these issues into the proposed rule. PC 16 at 1.
Fuel-Weighting
The first-notice proposed rule includes the fuel-weighting factor recommended by IEPA: 1.0 for coal-fired units, 0.6 for oil fired units, and 0.4 for gas-fired units. This is identical to the federal CAIR model rule.
While still maintaining that fuel neutrality is viable, Zion urges the Board to amend Sections 225.435, 225.445, 225.535, and 225.545 by adopting Zion’s previously-recommended compromise alternative fuel-weighting factor of 0.7 for both gas-fired and oil fired units. PC 16 at 2. Zion suggests that IEPA rejection of Zion’s positions has two bases, neither of which can withstand scrutiny.
IEPA’s first basis, according to Zion, is that because coal-fired sources emit higher rates of NOx and SO2, reductions at these sources will have higher benefits, so that these sources are more likely to be controlled. PC 16 at 3, citing PC 5 at 4-5. Zion believes that this basis may sound more logically accurate than is the case. Zion opines that the current allocation of allotments operates as an “emission limit” that results in a less stringent “emission limit” for coal-fired units at the expense of gas and oil-fired units. Zion calculates that as compared to a fuel-neutral allotment approach, under the current proposal, there are approximately 10% more allowances for coal-fired units, while gas-fired units would receive 56% fewer allowances and oil-fired units 34% fewer allowances. PC 16 at 3-4.
Zion suggests that under a cap and trade program such as CAIR, unit owners compare the cost of installing and operating controls versus purchasing allowances. Rather than increasing controls of coal-fired units, Zion predicts that:
by reducing the gap between allocations and actual emissions for coal fired units, the Proposed Rule will have just the opposite effect—it will create a disincentive to
install controls and reduce the financial incentive for units with existing controls to increase their reduction capabilities and “over-control”(footnote omitted). PC 16 at 4-5.
Zion points to IEPA’s experience with its own fuel-neutral NOx Budget Trading Program as an example both of a “highly successful method of achieving reductions,” and of how as:
control installations have allowed companies to over-control and generate excess allowance, the cost of compliance via the ‘purchase’ [of allocations] route has been significantly reduced, thus making it a more attractive option than installing new or enhancing existing emission control. PC 16 at 5.
Zion concludes that adoption of the proposed rule would reduce the largest emitters’ incentive to install controls on their most emitting units. Id. at 6.
IEPA’s second basis, Zion relates, is that the State’s economic analysis found the NOx policy to be economically reasonable based upon fuel-weighting, and that deviation from it would impact the economic analysis of the proposal. PC 16 at 6. In this context, IEPA noted that the fuel-weighting factors proposed are identical to those in the federal CAIR model rule. Id. at 3. Zion believes this basis is faulty as well. According to Zion, IEPA’s economic analysis “has been shown during the public hearing process to fail to stand up to scrutiny.” Id. at 6. Zion also concludes that using the federal CAIR fuel-weighting factors does not support the proposal because the factors’ “impact is substantially different on sources like Zion due to other elements of the Proposed Rule that are not included in the federal CAIR model rule (e.g. CASA and its size).” Id.
Clean Air Set-Aside (CASA)
Zion maintains that the Board should reduce the size of the CASA found in Sections 225.445, 225.460, and 225.465 to more equitably address comments and the evidence in the record. PC 16 at 6. Zion reiterates the position taken before first notice that the CASA should be revised in two ways. Id.
| First, Zion believes that a smaller portion of the total allowance budget should be made available for non-emitting sources. PC 16 at 6-7. Rather than the proposed 25%, Zion suggests a CASA set-aside of 5 to 10%, which it asserts is more in line with other states including Minnesota. Id. at 7. Zion asserts that the 25% CASA “unjustifiably increases the compliance burden on facilities that already face significant emission reduction obligations through an artificial reduction in allowances available for allocations.” Id.
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| Second, Zion suggests that applicants for CASA be limited to electric generating units and that non-generating sources (e.g., energy efficiency projects and demand-side management project) not be considered. PC 16 at 7. Zion maintains that allowing non-generating sources to apply for CASA will give “unwarranted financial incentives to non-emitters that have no direct compliance burden,” especially as economic incentives are already available. Id. Zion believes that failing to restrict CASA applicants will provide even more stringent reduction obligations for affected units. Id.
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| Zion maintains that the record is replete with commenters who support its position on CASA. PC 16 at 7-8. However, Zion opines that despite the evidence in the record, IEPA continues to reject a proposed reduction to the CASA size and the Board “seems to accept the Agency’s positions regarding the need for the existing size of CASA.” Id. at 8. Zion characterizes IEPA’s position as consisting of four claims:
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| Illinois has chosen to carve a set-aside away from the main pool to provide incentive to various other areas to promote Illinois’ interests (e.g., pollution control upgrades for cleaner air, integrated gasification combined cycle (IGCC) for cleaner generation, energy efficiencies/renewable energy (EE/RE) efforts for zero emission generation, and a small pool to undertake these projects early on) whose individual contribution will benefit the environment; |
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| each of the CASA project categories assists Illinois EPA in their duty to attain the National Ambient Air Quality Standard (NAAQS); |
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| results of a financial analysis of the impact, under a worst-case scenario where the entire 30% [set-aside] was retired, showed that the reliability of the grid would be intact and that residential and commercial electric rates would not be greatly impacted; and |
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| the positive impacts for Illinois outweigh the concomitant detriment posed by Illinois EPA’s choice for a 30% set-aside. Id., citing PC 5 at 7. |
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| As to IEPA’s first claim, that CASA is necessary to promote other Illinois interests, Zion believes the position is misplaced. PC 16 at 8. Zion opines that IEPA relied upon the Governor’s Sustainable Energy Plan to justify the large size of the CASA; however, IEPA has acknowledged that it is not responsible for implementing the renewable portfolio standard in Governor’s Sustainable Energy Plan. Id. at 8-9.
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| Zion also believes IEPA second claim, that the size of CASA is necessary to achieve NAAQS, is without merit. PC 16 at 9. Zion points to IEPA’s testimony indicating that CASA will not reduce NOx emissions in Illinois even if the entire 30% is retired. Id. Zion also asserts that IEPA “admitted during the hearing that the Chicago area has already attained the 8-hour ozone standard without the Proposed Rule.” Id. Zion indicates that Illinois’ return to ozone attainment has been confirmed by two recent redesignation proposals, which were possible without this rule. Id. Zion further comments that CAIR is an interstate rule and as such “local reductions will not necessarily be tied to improvements in Illinois’ air quality or attainment goals.” Id. Zion argues that, in effect, the proposed CASA will place an increased burden on Illinois, resulting in primarily benefits, if any, in other areas. Id. at 9-10.
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| Zion reiterates that the financial analysis IEPA is relying upon to support the size of CASA did not withstand the scrutiny of the public comment period. PC 16 at 10. Further, Zion maintains that IEPA did not bolster the economic analysis after the attacks upon the analysis and IEPA admitted that the analysis performed was revised before submission to the Board. Id.
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| Finally, Zion maintains that IEPA has no support in the record for its position that the positive impacts of the 30% set-aside outweigh the concomitant detriments. PC 16 at 10. Zion notes that IEPA has not clearly explained what the positive impacts are or whether the same positive impacts would occur with a smaller CASA. Id. According to Zion, IEPA and the Board have not fully evaluated the detriment posed by the 30% set-aside. Id. Zion further claims that the full evaluation of the detriments is lacking especially when comparing the full economic impact on businesses in Illinois to similar businesses outside Illinois that have “far less reaching or aggressive” CAIR standards. Id.
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PC 17: Kincaid and Dominion
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Kincaid begins its public comment by noting that Dominion owns and operates the 1,250 megawatt coal-fired Kincaid Generation, LLC power plant located in Kincaid, Illinois, and holds a 50% interest in the 1,400 megawatt natural gas-fired Elwood Energy, LLC combustion turbine plant located in Elwood, Illinois. PC 17 at 1.
According to Kincaid and Dominion, Subparts D (CAIR NOx Annual Trading Program) and E (CAIR NOx Ozone Season Trading Program) of the first-notice rules “far exceed the federal CAIR requirements and will competitively disadvantage Illinois businesses and electricity ratepayers.” PC 17 at 1. Kincaid and Dominion do not support the 25% CASA of NOx allowances under proposed Sections 225.455 and 225.555. Id. They feel that IEPA has failed to justify that the level of the proposed set-aside is necessary from an air quality perspective. They also believe these provisions “will significantly increase compliance costs for Illinois sources and competitively disadvantage the state relative to surrounding states” by denying Illinois the economic advantages of the USEPA trading program that many other surrounding states will realize. Id. at 1-2.
Kincaid and Dominion further do not support the proposed withholding of allowances from the Compliance Supplement Pool under Section 225.480 of the CAIR NOx Annual Trading Program proposal. They argue that these allowances are provided in the USEPA rule to “encourage early reductions during 2007 and 2008.” PC 17 at 2. Kincaid and Dominion note that Illinois included early reduction provisions in its NOx SIP Call rules:
These early reduction incentives not only provide companies added compliance flexibility that ease the burden once the requirements take effect, but benefit the environment as well by providing real emission reductions sooner. Id.
Kincaid and Dominion assert that IEPA “should justify any ‘beyond CAIR’ NOx reductions with a thorough modeling demonstration.” PC 17 at 2. They feel that it is neither reasonable nor environmentally justified to require all Illinois sources subject to CAIR to implement “beyond CAIR” reductions “across-the-board” for the purpose of resolving “local problems” of nonattainment. Id. Kincaid and Dominion urge IEPA to conduct a thorough modeling demonstration to determine the “level of reductions that may be necessary to resolve any residual nonattainment problems following implementation of the CAIR reductions.” Id.
According to Kincaid and Dominion, the 25% NOx set-aside is “unreasonably burdensome” to Illinois generators and their customers and “has not been demonstrated to be necessary to achieve attainment with the ambient air quality standards.” PC17 at 2. Kincaid and Dominion quote USEPA in stating that the program is designed “to balance the burden for achieving attainment between regional-scale and local-scale control programs.” Id., citing 70 Fed. Reg. 25166 (May 12, 2005). Kincaid and Dominion do not believe it is necessary for Illinois to have “beyond CAIR” NOx reductions, and instead propose “full adoption of USEPA’s federal ‘model rule’ on the same schedule established by the USEPA.” Id. at 3.
Kincaid and Dominion state that recent air quality modeling by the Lake Michigan Air Directors Consortium (LADCO) suggests additional NOx reductions from the EGU sector, beyond the reductions expected from federal CAIR, “will not solve the residual ozone and PM2.5 non-attainment problem in the Chicago area.” PC 17 at 3. According to Kincaid and Dominion:
A comprehensive attainment plan should be thoroughly researched and fully developed that clearly and conclusively demonstrates the level of emissions reductions needed and the source categories for which the most efficient and effective reductions can be achieved. Only when this plan has been fully developed will IEPA have the justification to proceed with “beyond CAIR” reductions. Id.
Kincaid and Dominion argue that further EGU reductions of SO2 and NOx are “unlikely to impact PM2.5 concentrations sufficiently to achieve attainment in any residual PM2.5 nonattainment areas in Illinois or in other states.” PC 17 at 3. They therefore assert that mandated “beyond CAIR” EGU reductions of SO2 and NOx “may not be necessary, cost effective or even have any beneficial effect” on reducing monitored PM2.5 particle concentrations. Id. Kincaid and Dominion feel it is premature to require “beyond CAIR” SO2 or NOx reductions from EGUs because the “absolute value of PM2.5 concentrations measured in the field may not be driven by SO2 or NOx reductions.” Id.
Kincaid and Dominion also reference recent modeling funded by the Midwest Ozone Group, the Illinois Environmental Regulatory Group, the Illinois Energy Association, and others, conducted by Alpine Geophysics. This modeling used “a finer, 4 kilometer grid and 2005 as a base year.” PC 17 at 4. Kincaid and Dominion state that the modeling results, which they have reviewed with LADCO staff, indicate that:
all the monitors in the 5-state (Illinois, Indiana, Wisconsin, Ohio and Michigan) region will attain both the ozone and the PM2.5 ambient air quality standards by 2015, when Phase 2 of the federal CAIR rules becomes effective. Id.
According to Kincaid and Dominion, “[i]t does not appear that further regional reductions by the utility sector will make a significant difference in the attainment status of the Chicago MSA.” PC 17 at 4. Instead, based on an analysis presented at an October 18, 2005 meeting of the Indiana Department of Environmental Management Utility Rules Workgroup, further utility emission reductions “actually cause ozone levels to increase in the Chicago MSA.” Id. Kincaid and Dominion also point out that data presented at the meeting indicate that Illinois EGU NOx emissions contribute approximately 4% of the ozone resulting in Chicago nonattainment, behind ozone contributions from “Boundary Conditions” or sources outside the 5-state region (38% of the ozone from NOx and VOC), “Illinois On-road” or mobile sources (26% of the ozone), and “Illinois Non-road,” “Illinois Non-EGU,” and “Indiana On-road” sources. Id. Kincaid and Dominion therefore support implementing CAIR as established by USEPA, “and then work with sources in local nonattainment areas to determine the appropriate mix of reductions needed to resolve remaining local nonattainment area issues.” Id.
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BOARD SECOND-NOTICE DISCUSSION
The Board has received five first-notice public comments. In this portion of the opinion, the Board first addresses the remaining contested issues presented in those comments. The Board then discusses amendments proposed to the rule language adopted at first notice.
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Contested Issues Analysis
The following contested issues were raised in public comment filed during the first-notice period, though many of these issues were previously posed to the Board and addressed in the Board’s first-notice decision: (1) determination of allocations for SIPC for 2009 – 2011; (2) allocations based on gross electrical output instead of heat input; (3) proposal to correct for “air in-leakage”; (4) fuel-weighting factors; (5) aspects of the CASA (size, availability, purpose, economic impact); and (6) withholding allowances from the Compliance Supplement Pool (CSP).
| As detailed below, the Board finds at second notice that none of these disagreements warrant any changes to the Board’s first-notice proposal. The Board now addresses each of the issues separately.
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Determination of Allocations for SIPC for 2009 - 2011
The first-notice rule for allowance trading includes a “look-back” period that would be updated on an annual basis to determine an EGU’s allowances. Although the proposal provides for a two-year look-back period, the initial look-back period for the 2009 – 2011 control periods uses data from the three highest control periods of 2001 through 2005. SIPC states that during the look-back period of 2001 – 2005, there were not three years of operation that SIPC considers “normal” for the purposes of calculating a representative number of allocations. PC 13 at 1-2.
As the Board discussed in its first-notice opinion, the initial look-back period was expanded from two years to five in response to concerns presented to IEPA before the proposal was filed with the Board. Stat. at 48. When SIPC reiterated its concerns with the first-notice proposal, IEPA responded that “the calculation methodology is fair and equal to all sources in the program,” and that carving out a special provision for SIPC would “open the door” to all other sources that might have similar issues. PC 15 at 4-5.
The Board recognizes that each regulated entity might have factors that would affect their number of allocations if more than just the gross electrical output or heat input data from the look-back period were considered. Because Illinois has a fixed number of allowances, the Board finds that each source’s operating history should be treated as equally as possible. The two-year look-back period, updated annually, also provides a means for IEPA to periodically reevaluate the changes in operating patterns and the resulting allocations. As stated at first notice, the short look-back period allows for the quick accounting of high and low usage years. For these reasons, the Board declines to adopt SIPC’s recommendation.
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Allocations Based on Gross Electrical Output vs. Heat Input
The first-notice proposal bases allocations on converted gross electrical output. In its latest public comment, SIPC maintains that it would prefer that allocations were based upon heat input instead of gross electrical output because SIPC employs pollution control as part of the boiler. PC 13 at 5. IEPA acknowledges that although operating pollution control equipment reduces the overall efficiency of a unit, virtually all EGU boilers in Illinois are similarly affected. PC 15 at 6.
In his prefiled testimony, IEPA’s Rory Davis testified that the output-based allocation methodology “encourages greater efficiency from sources by allocating based on output rather than use of fuel, adds a degree of flexibility in compliance strategies for sources, as is true for most trading programs, and is consistent with the allocation methodology used for the Clean Air Set-Aside.” Ag. Exh. 9 at 2. Davis explains:
| Many of the categories of the CASA eligible for allowances for environmentally beneficial practices do not include a measure of heat input, and measuring heat input for other eligible categories would be inconsistent with the goals of the CASA. These include zero emission electrical generation, energy efficiency projects, clean coal technology projects, and pollution control technology upgrades. Further, it would not promote the goals of the CASA to allocate a greater number of CASA allowances for a greater measure of heat input. In addition, employing an output-based allocation methodology creates a level playing field where the production or conservation of electricity by the specified means in the CASA is encouraged in the same manner that allowances are allocated to affected CAIR sources. Id.
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Although USEPA gave the states discretion in choosing their methods of allocation, USEPA had this to say about its own methodology in a discussion referring to cogeneration units:
| The use of modified output, rather than actual heat input, as the basis of determining allowance allocations will promote the development of cleaner more efficient generation of both electricity and process steam . . . . This approach neglects energy losses in the combustion turbine and generator. [US]EPA believes that any efficiency gains made by reducing these losses will be rewarded by [USEPA’s] approach, by resulting in greater electricity and/or steam output for a given amount of heat input. 71 Fed. Reg. 25358 (Apr. 28, 2006).
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The Board appreciates that different system configurations might detract from allowances allocated to a unit, but understands from IEPA that this affects most all boilers in Illinois similarly: “virtually all electrical generating utility (“EGU”) boilers in Illinois operate pollution control equipment that reduce the overall efficiency of a given unit.” PC 15 at 5-6. The Board remains convinced that using gross electrical output to determine allocations has the benefit of encouraging efficiency and providing a compatible way to determine allowances for CASA projects that might have no definable heat input.
Correcting for “Air In-Leakage”
Midwest Generation proposes to add a provision to Section 225.615(g)(4) of the Combined Pollutant Standards (CPS) that it claims would correct the determination of the flue gas flow rate for air leaked in between the mercury sorbent injection location and the stack. PC 14 at 1. By adjusting the flue gas flow rate for air leaked in, Midwest Generation states that less sorbent would be wasted without diminishing the effectiveness of the treatment. Midwest Generation estimates the average “air in-leakage” at each unit accounts for 10 to 15% of the total flue gas flow and “air in-leakage does not contain any emissions, let alone additional concentrations of Mercury.” Id. at 1-2.
The first-notice rule contained only a provision to correct the flue gas flow rate for the difference in gas temperatures between the point of injection and the stack. As noted by IEPA, this provision matches the language in the Multi-Pollutant Standard (MPS) found at Section 225.233(c)(2)(D) of Subpart B on the control of mercury emissions from coal-fired electric generating units. PC 15 at 6. IEPA expressed concern about changing this provision in the CPS without a corresponding change in the MPS and further analysis on the possible consequences. PC 15 at 6.
The Board notes that although Midwest Generation states sorbent costs are significant and supply may be limited, it does not include an economic analysis or cost figures to quantify the sought-after benefit. Midwest Generation’s proposal also does not illustrate the derivation of the equations or relate the adjustment to the correction for gas temperature. The Board finds that at this point in the rulemaking process, the justification for the equations proposed by Midwest Generation has not been adequately developed and the Board accordingly declines to adopt the change.
Fuel-Weighting Factors
The first-notice proposal contained fuel-weighting factors for calculating a unit’s converted gross electrical output: 1.0 for coal-fired; 0.6 for oil-fired; and 0.4 for other fuels such as natural gas. Zion again argues that the fuel-weighting factors should be revised either to a fuel-neutral position or to reflect a factor of 0.7 for both natural gas-fired and oil-fired units. PC 16 at 2. Zion presents the 0.7 value as representing a compromise alternative fuel-weighting factor to close the gap between the fuel-neutral and fuel-weighted options. According to Zion, the alternative factor is intended to provide additional consideration for reliability when natural gas is unavailable, power demand is high, or reliability is critical. Id.
The Board quotes from USEPA’s discussion of fuel weighting:
| [US]EPA proposed an allocation methodology based on the example allocation methodology in the CAIR SIP model rules, which included adjustments to heat input by fuel type, using fuel adjustment factors that are based on average historic NOx emissions rates by 3 fuel types (coal, natural gas, and oil) for the years 1999-2002. These adjustment factors are 1.0 for coal-fired units, 0.6 for oil-fired units, and 0.4 for units fired with all other fuels (e.g., natural gas). The factors reflect inherently different emissions rates of different fossil fuel-fired units.
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| [US]EPA believes that these adjustment factors appropriately consider the inherently higher emissions rate of coal-fired units and the relatively greater burden on these units to control emissions. 71 Fed. Reg. 25357 (Apr. 28, 2006).
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The proposal contains fuel-weighting factors that are identical to the federal CAIR model rule and reflect different burdens to control emissions. As stated by USEPA, the factors are based on historic NOx emissions rates of which natural gas was one of the three fuel types specifically assessed and assigned a factor of 0.4. USEPA used fuel types in determining the state budgets. Stat. at 35. Zion’s proposal to use a factor of 0.7 does not appear to be based on historic emissions rates, but rather represents a mid-point between the high 1.0 and low 0.4 factors. PC 3 at 2. Zion intends its alternative factor to account for the burden of reliability problems with natural gas, but USEPA focused on the burden of controlling emissions.
Coal-fired power plants represent the predominant sources of NOx and SO2 in Illinois and likewise have higher emission rates for both pollutants. As the Board observed at first notice, reductions at these sources therefore will provide the greatest benefits, and the more feasible controlling these emissions is under the rule, the more likely they are to be controlled. Accordingly, the Board does not modify the first-notice approach to fuel-weighting.
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Clean Air Set-Aside (CASA)
Size of the CASA. For energy efficiency and conservation, renewable energy, and clean technology projects, the first-notice proposal contains a CASA of 25% of the federal allocations. The size of the proposed allocations reserved for the CASA continues to concern Kincaid and Zion. Zion believes a smaller allowance budget should be made available, suggesting 5-10% to be more comparable to other states. PC 16 at 7.
IEPA’s Statement of Reasons provides that:
extensive modeling analysis has shown that Illinois will need to go significantly beyond the CAIR NOx and SO2 reductions to attain the PM2.5 and 8-hour ozone NAAQS. See, TSD 3.2. This set-aside, if unused, can be part of a larger plan to reach attainment. Stat. at 50.
IEPA acknowledges that the size of the CASA will not equate to an equal amount of emission reduction, but maintains that “it will lead to an improvement in air quality as it will encourage more efficient and cleaner operating technologies to enter the market place.” Id. As IEPA expects the demand for energy to increase, ensuring commensurate air quality improvement requires reduced demand for energy from fossil fuel-fired plants, and an increase in renewable energy sources. Id. at 51.
USEPA left the decision on using set-asides up to the states, so they may craft their allocation approaches to meet their state-specific policy goals. 70 Fed. Reg. 25279 (May 12, 2005). This flexibility under CAIR allows Illinois to use set-asides, like CASA, as a tool to promote energy efficiency, clean technology, and renewable energy. Stat. at 51. USEPA explains that such tools encourage innovate approaches to generating emission reductions:
In light of the increasing incremental cost associated with stationary source emission reductions and the difficulty of identifying additional stationary sources of emission reduction, [US]EPA believes that it needs to encourage innovative approaches to generating emission reductions. Consequently, [US]EPA believes that it is appropriate and consistent with the [Clean Air] Act to allow a percentage of the total emission reductions needed to satisfy ROP [Rate of Progress], RFP [Reasonable Further Progress], attainment, and maintenance requirements to come from programs that may not fully meet the traditional requirements [of Sections 110, 172, 182, and 175A of the CAA]. Incorporating Emerging and Voluntary Measures in a State Implementation Plan, USEPA (Sept. 2004) at 8.
USEPA also advises that “[i]t is . . . important to encourage and reward greater application of energy efficiency and renewable energy measures and incorporate the emission reductions that these measures will accrue into the air quality planning process.” Guidance on SIP Credits for Emission Reductions from Electric-Sector Energy Efficiency and Renewable Energy Measures, USEPA (Aug. 5, 2004) (USEPA, Aug. 2004 Guidance) at 1.
The first-notice proposal sets aside percentages for four categories making up the CASA:
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| Energy Efficiency and Conservation Projects/Renewable Energy Generation: 12%
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| Pollution Control Upgrade: 5%
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| Clean Coal Technology: 6%
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| Early Adopters: 2%
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IEPA explains that a portion of the set-asides comes about from Section 9.10 of the Act (415 ILCS 5/9.10 (2006)), which prescribes a percentage of the State’s energy production that should come from renewable energy: 5% by 2010 and 15% by 2020. Stat. at 51. The 12% figure is a combined value representing the renewable energy initiative of Section 9.10 coupled with energy efficiency and conservation. This value is consistent with the USEPA recommendation that a set-aside for the combination of EE/RE range between 5% and 15%. Id. at 33. USEPA guidance suggests other types of energy projects can also be encouraged through set-asides. USEPA, Aug. 2004 Guidance at 3-4. IEPA proposes the additional categories above, adding on another 13% of the budget to encourage new air pollution controls, cleaner technology, and early adoption of such projects. Stat. at 51.
As stated at first notice, the Board finds that the set-asides proposed by IEPA are appropriate. The allocations under the CASA categories work toward addressing the Section 9.10 initiative while “encouraging a more diverse universe of energy producers.” Stat. at 49.
Availability of the CASA. Zion renews its suggestion that applicants for CASA allowances be restricted to electric-generating sources, eliminating non-generating sources (e.g., energy efficiency projects and demand-side management projects) from applying for CASA allowances. PC 16 at 7. The restriction, Zion continues, will make more allocations available to affected units for compliance. Without the restrictions, Zion states that IEPA would be offering “unwarranted financial incentives to non-emitters that have no direct compliance burden.” Id. In support of these restrictions, Zion adds that such efficiency and demand-side management projects already realize economic incentives through “reductions in direct energy costs and tax breaks.” Id.
Allowing non-generating sources to apply for CASA allowances is consistent with the approach taken with the Emission Reduction Market System (ERMS) for volatile organic material (VOM) trading. 35 Ill. Adm. Code 205. In part like the rules proposed for second notice here today, ERMS was designed to:
| Implement innovative and cost-effective strategies to attain the national ambient air quality standard (NAAQS) for ozone and to meet the requirements of the Clean Air Act. 35 Ill. Adm. Code 205.110(a).
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ERMS provides for open trading, specifically allowing “Special Participants”:
c) Special Participants
Any person may purchase ATUs [Allotment Trading Units] to retire for air quality benefit only. Such person shall be a special participant and shall register with the Agency prior to its first ATU purchase. Special participants will not have Transaction Accounts in the Transaction Account database. All ATUs purchased by special participants will be retired effective on the date of purchase and will be listed as retired in the appropriate database. 35 Ill. Adm. Code 205.610(c).
A “Special participant” in ERMS means “any person that registers with the Agency and may purchase and retire ATUs but not sell ATUs, as specified in Section 205.610 of this Part.” 35 Ill. Adm. Code 205.130.
The open trading policy is the approach the State took in ERMS, an earlier example of pollution trading. Zion does not cite to the issue of restricting trade in the federal discussion. The Board finds the ability for non-generators to apply for CASA allowances is consistent with the open trading policy of ERMS at the State level and promotes energy efficiency.
Purpose of the CASA. In criticizing the 25% CASA as “unreasonably burdensome,” Kincaid and Dominion maintain that IEPA should justify “beyond CAIR” reductions with a modeling demonstration to determine the level of reductions needed to resolve residual nonattainment problems after CAIR is implemented. PC 17 at 2. Kincaid and Dominion also state that “beyond CAIR” reductions may not have any beneficial effect on reducing PM2.5. Id. at 3. Kincaid and Dominion claim that modeling conducted by Alpine Geophysics, dated March 20, 2007, indicates that Illinois, Indiana, Wisconsin, Ohio, and Michigan will attain both the ozone and PM2.5 ambient air quality standards by 2015, when Phase 2 of the CAIR rules becomes effective. Id. at 3-4.
To clarify, the Board notes that the 25% CASA set-aside does not equate with emissions reductions. Rather, the CASA represents a portion of the NOx emissions allowances to be used for particular purposes, i.e., EE/RE, pollution control upgrades, clean coal technology, and early adopters. Accordingly, the CASA itself is not a “beyond CAIR” reduction. That said, in IEPA’s Statement of Reasons, IEPA responded to a suggestion that set-asides be retired only if modeling showed an air quality benefit would result. According to IEPA, a “modeling demonstration would not be particularly instructive in this instance. The effect of emissions reductions are incremental and no measure alone will assure attainment.” Stat. at 52. IEPA continued by listing several other control measures that it intends to pursue before seeking additional reductions in SO2 or NOx from EGUs. Id.
Zion reiterates IEPA’s testimony at hearing that the proposed CASA and NUSA would not reduce NOx emissions in Illinois even if the entire 30% were retired, and that the Chicago area has already attained the 8-hour ozone standard without implementation of the proposed rule. PC 16 at 9. Zion observes that local reductions will not necessarily result in improvements in Illinois because CAIR is regional program, and Illinois will experience a burden from CASA that will have primary benefits in other areas. Id.
Again, the Board emphasizes that the allowances in the CASA are not simply being retired. This contrasts with the Compliance Supplement Pool, discussed below. At hearing, James R. Ross, Manager of the Division of Air Pollution Control in IEPA’s Bureau of Air, testified in response to the question of whether the “primary purpose behind the proposal of the CASA in its form [is] to result in reduced emissions, or was there a different purpose that was driving the Agency’s proposal?” (Tr. at 91 (Oct. 10, 2006, a.m.):
The primary purpose was to encourage energy efficiency, renewable energy, clean technology and early adopters, and as I stated, to the extent that those result in additional NOx reductions, we would expect corresponding improvements to public health and air quality (id.).
The Board further notes that neither of Illinois’ ozone nonattainment areas has been redesignated as having attained the 8-hour ozone NAAQS. Moreover, in its Statement of Reasons, IEPA stated that it:
presented modeling indicating that neither the greater Chicago nor Metro-East nonattainment areas will attain the PM2.5 NAAQS by the attainment dates nor will the greater Chicago area attain the 8-hour ozone NAAQS by the attainment date. Moreover these areas will not reach attainment in 2018, 3 ½ years after the implementation of Phase II of the CAIR SO2 and NOx trading programs. See, TSD 3.2. Illinois will need between 30 and 35 percent reductions of NOx beyond the CAIR to achieve the current PM2.5 NAAQS. Stat. at 51-52.
Finally, the Board finds it useful here to keep in mind the regional nature of CAIR, as described by USEPA:
| The [US]EPA conducted extensive air modeling to determine the extent to which emissions from certain upwind States were impacting downwind nonattainment areas. All States found to contribute significantly to downwind PM2.5 [and 8-hour ozone] nonattainment and maintenance problems are included in the CAIR region . . . . 71 Fed. Reg. 25304 (Apr. 28. 2006).
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In addition, the CAIR will improve PM2.5 and 8-hour ozone air quality in the areas that would remain in nonattainment for those two NAAQS after implementation of the CAIR. Because of CAIR, the States with those remaining nonattainment areas will find it less burdensome and less expensive to reach attainment by adopting additional local controls. 71 Fed. Reg. 25333 (Apr. 28, 2006).
Economic Impact of the CASA. Zion expressed reservations over the reliance on the “Analysis of Illinois NOx Budget Reductions by ICF Resource Incorporated using the Integrated Planning Model [IPM].” PC 16 at 10. Zion associates the size of the CASA with a detrimental economic impact to Illinois businesses when compared to businesses in other states that will be subject to less aggressive CAIR standards. Id. Kincaid and Dominion follow this idea, stating that the proposed CASA provisions will competitively disadvantage Illinois businesses and electricity ratepayers relative to surrounding states. PC 17 at 1.
Although Zion, Kincaid, and Dominion express concern regarding the economic implications of the rule, the companies do not provide for the rulemaking record a comparative economic analysis of the predicted retail electricity rates in surrounding states to demonstrate or quantify a competitive disadvantage for Illinois businesses or electricity ratepayers.
USEPA gives a regional perspective on the economics of the rule, stating that:
incentives provided by cap-and-trade encourage economically efficient compliance over the entire region . . . . The economically efficient outcome will not depend on the relative levels of individual unit allowance allocations. 71 Fed. Reg. 25357 (Apr. 28, 2006).
As to the potential benefits to the economy from the approaches like CASA, USEPA states:
[Energy efficiency and renewable energy] measures can save money, have other economic benefits, reduce dependence on foreign sources of fuel, increase the reliability of the electricity grid, enhance energy security, and, most importantly for air quality purposes, reduce air emissions from electric generating power plants. USEPA, Aug. 2004 Guidance at 1.
As stated at first notice, the Board considered the USEPA findings on CAIR NOx and SO2 control technology costs, the IPM modeling provided by IEPA, and IEPA modeling used to determine the cost impact of CASA on Illinois electricity rates. The modeling projects that retail electricity rates will not change, and there was a slight change in average production costs. TSD Table 7.6. The Board finds that no new information has been presented in this rulemaking record to warrant the Board altering its first-notice finding that the proposal is economically reasonable.
Compliance Supplement Pool (CSP)
USEPA created a Compliance Supplement Pool (CSP) for the first year of the CAIR program that states may elect to distribute through early reduction credits or through direct distribution for a demonstrated hardship or disruption in the electricity supplied to the grid. Illinois received 11,299 CAIR NOx allowances in the CSP for the 2009 control period. Stat. at 31. IEPA has proposed retiring the allowances in the CSP in the interest of “working toward a timely attainment of [the 8-hour ozone and PM2.5] NAAQS.” Stat. at 36; see proposed 35 Ill. Adm. Code 225.480.
Kincaid, Dominion, Dynegy, and SIPC do not support IEPA’s plan to withhold the allowances from the CSP. PC 6 at 35; PC 17 at 2. Kincaid and Dominion state that the CSP allowances used as early reduction incentives provide compliance flexibility and “real emission reductions sooner.” PC 17 at 2. IEPA views the CSP as counter-productive:
Given the difficulty that the State will face in attaining the PM2.5 and 8-hour ozone NAAQS, to have an additional 11,299 tons (for the annual NOx program) emitted during the critical years that are being used to determine attainment is counter productive. Further, the State may take SIP credit for retirement of these allowances. Stat. at 36.
Although different than having a CSP for early reduction incentives, the Board notes that for early adopters, the 2% CASA would provide 1,525 and 614 allowances for Phase I (2009 – 2014) NOx annual and ozone season trading, respectively. The Board agrees with IEPA that distributing the one-time allowances in the CSP for the 2009 control period would be counter-productive to Illinois’ attainment efforts.
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Rule Language Changes from First to Second Notice
In its first-notice public comment, IEPA proposed a number of “clarifications and corrections” to the rules proposed at first notice. PC 15 at 7. IEPA further describes its proposed revisions:
a number of dates in the proposal, if left unchanged, would require retroactive compliance. The Illinois EPA has also received a second set of comments from USEPA and has noticed that a number of the amendments that it recommended in its January 5, 2007, comments to the Board on the initial proposal were not included in the first notice. In addition, there are some typos that need correction and that some clarifications that need to be made. Id.
IEPA’s public comment, like the other four first-notice public comments, was filed on the last day of the public comment period, June 25, 2007. The Board nevertheless has not received any motion for leave to file instanter a public comment in response to these IEPA-proposed amendments. Accordingly, while contested issues have remained in this rulemaking as discussed above, there is no opposition in the record to the specific word changes IEPA now seeks to make.
The Board also agrees with IEPA that these proposed changes in PC 15 are in the nature of clarifications and corrections to the first-notice rules. The vast majority of the changes are based on USEPA input received by IEPA. PC 15 at 7-26. Before first notice, in December 2006, USEPA provided IEPA with most of USEPA’s recommended “conforming amendments.” PC 5 at 21; PC 15 at 7-19. On January 5, 2007, IEPA filed with the Board, as part of PC 5, these USEPA-suggested edits, the highlights of which were discussed in the Board’s first-notice opinion. Proposed New Clean Air Interstate Rules (CAIR) SO2, NOx Annual and NOx Ozone Season Trading Programs, 35 Ill. Adm. Code 225, Subparts A, C, D, E, and F, R06-26, slip op. at 15 (Apr. 19, 2007) (CAIR First Notice). The changes, however, were inadvertently left out of the first-notice rule text.
As SIPC points out, some other changes now proposed by IEPA were found meritorious by the Board in the first-notice opinion but also unintentionally omitted from the first-notice order. PC 13 at 5-6; PC 15 at 27-28; CAIR First Notice at 14, 37; see proposed Sections 225.465(b)(5)(B) and 225.565(b)(5)(B). IEPA also proposes changes to avoid any retroactive application of the rule. For example, under the proposed CAIR NOx annual trading program, for control periods 2009, 2010, and 2011, the deadline for the EGU owner or operator to submit to IEPA a statement that either gross electrical output data or heat input data is to be used to calculate the unit’s converted gross electrical output is revised from June 1, 2007, to September 15, 2007. See proposed Section 225.435(a).
The Board finds all of the changes proposed by IEPA in PC 15 appropriate and adopts them for second notice. At the request of JCAR, the Board also makes several minor language changes to its first-notice order, none of which warrant discussion. The Board’s rule changes from first to second notice are highlighted in the order following this opinion.
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CONCLUSION
| To reduce the interstate transport of SO2 and NOx emissions and take steps necessary to attain the PM2.5 and 8-hour ozone NAAQS in the greater Chicago and Metro East/St. Louis nonattainment areas, this rulemaking proposal adopts the CAIR SO2, CAIR NOx annual, and CAIR NOx ozone season trading programs. The proposal amends Subpart A and proposes new Subparts C, D, E, and F and Appendix A of Part 225. Based on this record, the Board finds that the amendments proposed today are technically feasible and economically reasonable and will not have an adverse economic impact on the People of Illinois. See 415 ILCS 5/27(a), (b) (2006). The Board adopts the proposed CAIR for second-notice review by JCAR.
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The Board directs the Clerk to cause the filing of the following proposed rule with JCAR for its second-notice review. Proposed deletions to the current rules at 35 Ill. Adm. Code 225 are stricken and proposed additions are underlined. Additionally, for ease of comparison, deletions from rule text proposed at first notice are stricken; additions are double-underlined.
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TITLE 35: ENVIRONMENTAL PROTECTION
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SUBTITLE B: AIR POLLUTION
CHAPTER I: POLLUTION CONTROL BOARD
SUBCHAPTER c: EMISSION STANDARDS AND LIMITATIONS FOR STATIONARY SOURCES
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PART 225
CONTROL OF EMISSIONS FROM LARGE COMBUSTION SOURCES
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| SUBPART A: GENERAL PROVISIONS
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| Section
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| 225.100
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| Severability |
| 225.120
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| Abbreviations and Acronyms |
| 225.130
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| Definitions |
| 225.140
| Incorporations by Reference |
| 225.150
| Commence Commercial Operation |
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| SUBPART B: CONTROL OF MERCURY EMISSIONS FROM COAL-FIRED ELECTRIC GENERATING UNITS
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| 225.200
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| Purpose |
| 225.202
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| Measurement Methods |
| 225.205
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| Applicability |
| 225.210
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| Compliance Requirements |
| 225.220
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| Clean Air Act Permit Program (CAAPP) Permit Requirements |
225.230 Emission Standards for EGUs at Existing Sources
| 225.232
| Averaging Demonstrations for Existing Sources |
| 225.233
| Multi-Pollutant Standard (MPS) |
225.234 Temporary Technology-Based Standard for EGUs at Existing Sources
225.235 Units Scheduled for Permanent Shut Down
225.237 Emission Standards for New Sources with EGUs
225.238 Temporary Technology-Based Standard for New Sources with EGUs
| 225.240
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| General Monitoring and Reporting Requirements |
| 225.250
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| Initial Certification and Recertification Procedures for Emissions Monitoring |
| 225.260
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| Out of Control Periods for Emission Monitors |
225.261 Additional Requirements to Provide Heat Input Data
| 225.263
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| Monitoring of Gross Electrical Output |
| 225.265
| Coal Analysis for Input Mercury Levels |
| 225.270
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| Notifications |
| 225.290
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| Recordkeeping and Reporting |
| 225.295
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| Treatment of Mercury Allowances |
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SUBPART C: CLEAN AIR ACT INTERSTATE RULE (CAIR) SO2 TRADING PROGRAM
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Section
225.300 Purpose
225.305 Applicability
| 225.310
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| Compliance Requirements |
| 225.315
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| Appeal Procedures |
| 225.320
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| Permit Requirements |
| 225.325
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| Trading Program |
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SUBPART D: CAIR NOx ANNUAL TRADING PROGRAM
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Section
225.400 Purpose
225.405 Applicability
225.410 Compliance Requirements
225.415 Appeal Procedures
225.420 Permit Requirements
225.425 Annual Trading Budget
225.430 Timing for Annual Allocations
225.435 Methodology for Calculating Annual Allocations
225.440 Annual Allocations
225.445 New Unit Set-Aside (NUSA)
| 225.450
| Monitoring, Recordkeeping and Reporting Requirements for Gross Electrical Output and Useful Thermal Energy |
225.455 Clean Air Set-Aside (CASA)
| 225.460
| Energy Efficiency and Conservation, Renewable Energy, and Clean Technology Projects |
225.465 Clean Air Set-Aside (CASA) Allowances
225.470 Clean Air Set-Aside (CASA) Applications and Recordkeeping
225.475 Agency Action on Clean Air Set-Aside (CASA) Applications
225.480 Compliance Supplement Pool
SUBPART E: CAIR NOx OZONE SEASON TRADING PROGRAM
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Section
225.500 Purpose
225.505 Applicability
225.510 Compliance Requirements
225.515 Appeal Procedures
225.520 Permit Requirements
225.525 Ozone Season Trading Budget
225.530 Timing for Ozone Season Allocations
225.535 Methodology for Calculating Ozone Season Allocations
225.540 Ozone Season Allocations
225.545 New Unit Set-Aside (NUSA)
| 225.550
| Monitoring, Recordkeeping and Reporting Requirements for Gross Electrical Output and Useful Thermal Energy |
225.555 Clean Air Set-Aside (CASA)
| 225.560
| Energy Efficiency and Conservation, Renewable Energy, and Clean Technology Projects |
225.565 Clean Air Set-Aside (CASA) Allowances
225.570 Clean Air Set-Aside (CASA) Applications and Recordkeeping
225.575 Agency Action on Clean Air Set-Aside (CASA) Applications
SUBPART F: COMBINED POLLUTANT STANDARDS
225.600 Purpose
225.605 Applicability
225.610 Notice of Intent
225.615 Control Technology Requirements and Emissions Standards for Mercury
| 225.620
| Emissions Standards for NOx and SO2 |
225.625 Control Technology Requirements for NOx, SO2, and PM Emissions
225.630 Permanent Shut-Downs
| 225.635
| Requirements for CAIR SO2, CAIR NOx, and CAIR NOx Ozone Season Allowances |
225.640 Clean Air Act Requirements
| 225.APPENDIX A
| Specified EGUs for Purposes of Subpart F (Midwest Generation’s Coal-Fired Boilers as of July 1, 2006) |
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| AUTHORITY: Implementing and authorized by Section 27 of the Environmental Protection Act [415 ILCS 5/27].
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| SOURCE: Adopted in R06-25 at 31 Ill. Reg. 129, effective December 21, 2006; amended in R06-26 at 31 Ill. Reg. ___________, effective August 31, 2007.
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SUBPART A: GENERAL PROVISIONS
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| Section 225.120
| Abbreviations and Acronyms |
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| Unless otherwise specified within this Part, the abbreviations used in this Part must be the same as those found in 35 Ill. Adm. Code 211. The following abbreviations and acronyms are used in this Part:
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| Act
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| Environmental Protection Act [415 ILCS 5] |
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ACI activated carbon injection
| Agency
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| Illinois Environmental Protection Agency |
| Btu
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| British thermal unit |
| CAA
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| Clean Air Act [42 USC 7401 et seq.] |
| CAAPP
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| Clean Air Act Permit Program |
| CAIR
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| Clean Air Interstate Rule |
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CASA Clean Air Set-Aside
CEMS continuous emission monitoring system
CPS Combined Pollutant Standard
| CGO
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| converted gross electrical output |
| CUTE
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| converted useful thermal energy |
| EGU
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| electric generating unit |
ESP electrostatic precipitator
| FGD
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| flue gas desulfurization |
| GO
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| gross electrical output |
| GWh
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| gigawatt hour |
HI heat input
| hr
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| hour |
| kg
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| kilogram |
| lb
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| pound |
MPS Multi-Pollutant Standard
| MW
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| megawatt |
| MWe
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| megawatt electrical |
| MWh
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| megawatt hour |
| NAAQS
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| National Ambient Air Quality Standards |
| NOx
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| nitrogen oxides |
NUSA New Unit Set-Aside
| ORIS
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| Office of Regulatory Information Systems |
| O2
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| oxygen |
| PM2.5
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| Particles less than 2.5 micrometers in diameter |
| RATA
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| relative accuracy test audit |
| SO2
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| sulfur dioxide |
SNCR selective noncatalytic reduction
TTBS Temporary Technology Based Standard
TCGO total converted useful thermal energy
UTE useful thermal energy
| USEPA
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| United States Environmental Protection Agency |
| yr
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| year |
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| (Source: Amended at 31 Ill. Reg. ____________, effective _______________)
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| Section 225.130
| Definitions |
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The following definitions apply for the purposes of this Part. Unless otherwise defined in this Section or a different meaning for a term is clear from its context, the terms used in this Part have the meanings specified in 35 Ill. Adm. Code 211.
“Agency” means the Illinois Environmental Protection Agency. [415 ILCS 5/3.105]
“Averaging demonstration” means, with regard to Subpart B of this Part, a demonstration of compliance that is based on the combined performance of EGUs at two or more sources.
“Base Emission Rate” means, for a group of EGUs subject to emission standards for NOx and SO2 pursuant to Section 225.233, the average emission rate of NOx or SO2 from the EGUs, in pounds per million Btu heat input, for calendar years 2003 through 2005 (or, for seasonal NOx, the 2003 through 2005 ozone seasons), as determined from the data collected and quality assured by the USEPA, pursuant to the 40 CFR 72 and 96 federal Acid Rain and NOx Budget Trading Programs, for the emissions and heat input of that group of EGUs.
“Board” means the Illinois Pollution Control Board. [415 ILCS 5/3.130]
“Boiler” means an enclosed fossil or other fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium.
“Bottoming-cycle cogeneration unit” means a cogeneration unit in which the energy input to the unit is first used to produce useful thermal energy and at least some of the reject heat from the useful thermal energy application or process is then used for electricity production.
“CAIR authorized account representative” means, for the purpose of general accounts, a responsible natural person who is authorized, in accordance with 40 CFR 96, subparts BB, FF, BBB, FFF, BBBB, and FFFF to transfer and otherwise dispose of CAIR NOx, SO2, and NOx Ozone Season allowances, as applicable, held in the CAIR NOx, SO2, and NOx Ozone Season general account, and for the purpose of a CAIR NOx compliance account, a CAIR SO2 compliance Allowance System Tracking account, or a CAIR NOx Ozone Season compliance account, the CAIR designated representative of the source.
“CAIR designated representative” means, for a CAIR NOx source, a CAIR SO2 source, and a CAIR NOx Ozone Season source and each CAIR NOx unit, CAIR SO2 unit and CAIR NOx Ozone Season unit at the source, the natural person who is authorized by the owners and operators of the source and all such units at the source, in accordance with 40 CFR 96, subparts BB, FF, BBB, FFF, BBBB, and FFFF as applicable, to represent and legally bind each owner and operator in matters pertaining to the CAIR NOx Annual Trading Program, CAIR SO2 Trading Program, and CAIR NOx Ozone Season Trading Program, as applicable. For any unit that is subject to one or more of the following programs: CAIR NOx Annual Trading Program, CAIR SO2 Trading Program, CAIR NOx Ozone Season Trading Program, or the federal Acid Rain Program, the designated representative for the unit must be the same natural person for all programs applicable to the unit.
“CAIR Trading Programs” means the requirements of this Part, and those provisions of the federal CAIR NOx Annual Season, CAIR SO2, or CAIR NOx Ozone Season Trading Programs set forth in 40 CFR 96, as incorporated by reference in Section 225.140.
“Coal” means any solid fuel classified as anthracite, bituminous, subbituminous, or lignite by the American Society for Testing and Materials (ASTM) Standard Specification for Classification of Coals by Rank D388-77, 90, 91, 95, 98a, or 99 (Reapproved 2004).
“Coal-derived fuel” means any fuel (whether in a solid, liquid or gaseous state) produced by the mechanical, thermal, or chemical processing of coal.
“Coal-fired” means:
For purposes of Subparts B, and F D, and E, or for purposes of allocating allowances under Sections 225.435, 225.445, 225.535, and 225.545 combusting any amount of coal or coal-derived fuel, alone or in combination with any amount of any other fuel, during a specified year;
Except as provided above For purposes of Subpart C, combusting any amount of coal or coal-derived fuel, alone or in combination with any amount of any other fuel.
“Cogeneration unit” means, for the purposes of Subparts C, D, and E, a stationary, fossil fuel-fired boiler or a stationary, fossil fuel-fired combustion turbine of which both of the following conditions are true:
It uses equipment to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy; and
It produces either of the following during the 12-month period beginning on the date the unit first produces electricity and during any subsequent calendar year after that in which the unit first produces electricity:
For a topping-cycle cogeneration unit, both of the following:
Useful thermal energy not less than five percent of total energy output; and
Useful power that, when added to one-half of useful thermal energy produced, is not less than 42.5 percent of total energy input, if useful thermal energy produced is 15 percent or more of total energy output, or not less than 45 percent of total energy input if useful thermal energy produced is less than 15 percent of total energy output; or
For a bottoming-cycle cogeneration unit, useful power not less than 45 percent of total energy input.
“Combined cycle system” means a system comprised of one or more combustion turbines, heat recovery steam generators, and steam turbines configured to improve overall efficiency of electricity generation or steam production.
“Combustion turbine” means:
An enclosed device comprising a compressor, a combustor, and a turbine and in which the flue gas resulting from the combustion of fuel in the combustor passes through the turbine, rotating the turbine; and
If the enclosed device described in under the above paragraph of this definition is combined cycle, any associated duct burner, heat recovery steam generator and steam turbine.
“Commence commercial operation” means, for the purposes of Subparts B and F of this Part, with regard to an EGU that serves a generator, to have begun to produce steam, gas, or other heated medium used to generate electricity for sale or use, including test generation. Such date must remain the unit's date of commencement of operation even if the EGU is subsequently modified, reconstructed or repowered. For the purposes of Subparts C, D and E, “commence commercial operation” is as defined in Section 225.150.
“Commence construction” means, for the purposes of Section 225.460(f), 225.470, 225.560(f), and 225.570, that the owner or owner’s designee has obtained all necessary preconstruction approvals (e.g., zoning) or permits and either has:
Begun, or caused to begin, a continuous program of actual on-site construction of the source, to be completed within a reasonable time; or
Entered into binding agreements or contractual obligations, which cannot be cancelled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time.
For purposes of this definition:
“Construction” shall be determined as any physical change or change in the method of operation, including but not limited to fabrication, erection, installation, demolition, or modification of projects eligible for CASA allowances, as set forth in Sections 225.460 and 225.560.
“A reasonable time” shall be determined considering but not limited to the following factors: the nature and size of the project, the extent of design engineering, the amount of off-site preparation, whether equipment can be fabricated or can be purchased, when the project begins (considering both the seasonal nature of the construction activity and the existence of other projects competing for construction labor at the same time, the place of the environmental permit in the sequence of corporate and overall governmental approval), and the nature of the project sponsor (e.g., private, public, regulated).
“Commence operation”, for purposes of Subparts C, D and E, means:
To have begun any mechanical, chemical, or electronic process, including, for the purpose of a unit, start-up of a unit’s combustion chamber, except as provided in 40 CFR 96.105, 96.205, or 96.305, as incorporated by reference in Section 225.140.
For a unit that undergoes a physical change (other than replacement of the unit by a unit at the same source) after the date the unit commences operation as set forth in the first paragraph of this definition, such date will remain the date of commencement of operation of the unit, which will continue to be treated as the same unit.
For a unit that is replaced by a unit at the same source (e.g., repowered), after the date the unit commences operation as set forth in the first paragraph of this definition, such date will remain the replaced unit’s date of commencement of operation, and the replacement unit will be treated as a separate unit with a separate date for commencement of operation as set forth in this definition as appropriate.
“Common stack” means a single flue through which emissions from two or more units are exhausted.
“Compliance account” means,:
For the purposes of Subparts D and E, a CAIR NOx Allowance Tracking System account, established by USEPA for a CAIR NOx source or CAIR NOx Ozone Season source pursuant to 40 CFR 96, subparts FF and FFFF in which any CAIR NOx allowance or CAIR NOx Ozone Season allowance allocations for the CAIR NOx units or CAIR NOx Ozone Season units at the source are initially recorded and in which are held any CAIR NOx or CAIR NOx Ozone Season allowances available for use for a control period in order to meet the source’s CAIR NOx or CAIR NOx Ozone Season emissions limitations in accordance with Sections 225.410 and 225.510, and 40 CFR 96.154 and 96.354, as incorporated by reference in Section 225.140. CAIR NOx allowances may not be used for compliance with the CAIR NOx Ozone Season Trading Program and CAIR NOx Ozone Season allowances may not be used for compliance with the CAIR NOx Annual Trading Program.; or
For the purposes of Subpart C, a “compliance account” means a CAIR SO2 compliance account, established by the USEPA for a CAIR SO2source pursuant to 40 CFR 96, subpart FFF, in which any SO2 units at the source are initially recorded and in which are held any SO2 allowances available for use for a control period in order to meet the source’s CAIR SO2 emissions limitations in accordance with Section 225.310 and 40 CFR 96.254, as incorporated by reference in Section 225.140.
“Control period” means:
For the CAIR SO2 and NOx Annual Trading Programs in Subparts C and D, the period beginning January 1 of a calendar year, except as provided in Sections 225.310(d)(3) and 225.410(d)(3), and ending on December 31 of the same year, inclusive; or
For the CAIR NOx Ozone Season Trading Program in Subpart E, the period beginning May 1 of a calendar year, except as provided in Section 225.510(d)(3), and ending on September 30 of the same year, inclusive.
“Designated representative” means, for the purposes of Subpart B of this Part, the same natural person as defined in 40 CFR 60.4102, and is the same natural person as the person who is the designated representative for the CAIR trading and Acid Rain programs.
“Electric generating unit” or “EGU” means a fossil fuel-fired stationary boiler, combustion turbine or combined cycle system that serves a generator that has a nameplate capacity greater than 25 MWe and produces electricity for sale.
“Flue” means a conduit or duct through which gases or other matter is exhausted to the atmosphere.
“Fossil fuel” means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material.
“Fossil fuel-fired” means the combusting of any amount of fossil fuel, alone or in combination with any other fuel in any calendar year.
“Generator” means a device that produces electricity.
“Gross electrical output” means the total electrical output from an EGU before making any deductions for energy output used in any way related to the production of energy. For an EGU generating only electricity, the gross electrical output is the output from the turbine/generator set.
“Heat input” means, for the purposes of Subparts C, D, and E, a specified period of time, the product (in mmBtu/hr) of the gross calorific value of the fuel (in Btu/lb) divided by 1,000,000 Btu/mmBtu and multiplied by the fuel feed rate into a combustion device (in lb of fuel/time), as measured, recorded and reported to USEPA by the CAIR designated representative and determined by USEPA in accordance with 40 CFR 96, subpart HH, HHH, or HHHH, if applicable, and excluding the heat derived from preheated combustion air, recirculated flue gases, or exhaust from other sources.
“Higher heating value” or “HHV” means the total heat liberated per mass of fuel burned (Btu/lb), when fuel and dry air at standard conditions undergo complete combustion and all resultant products are brought to their standard states at standard conditions.
“Input mercury” means the mass of mercury that is contained in the coal combusted within an EGU.
“Integrated gasification combined cycle” or “IGCC” means a coal-fired electric utility steam generating unit that burns a synthetic gas derived from coal in a combined-cycle gas turbine. No coal is directly burned in the unit during operation.
“Nameplate capacity” means, starting from the initial installation of a generator, the maximum electrical generating output (in MWe) that the generator is capable of producing on a steady-state basis and during continuous operation (when not restricted by seasonal or other deratings) as of such installation as specified by the manufacturer of the generator or, starting from the completion of any subsequent physical change in the generator resulting in an increase in the maximum electrical generating output (in MWe) that the generator is capable of producing on a steady-state basis and during continuous operation (when not restricted by seasonal or other deratings), such increased maximum amount as of completion as specified by the person conducting the physical change.
“Oil-fired unit” means a unit combusting fuel oil for more than 15.0 percent of the annual heat input in a specified year and not qualifying as coal-fired.
“Output-based emission standard” means, for the purposes of Subpart B of this Part, a maximum allowable rate of emissions of mercury per unit of gross electrical output from an EGU.
“Potential electrical output capacity” means 33 percent of a unit’s maximum design heat input, expressed in mmBtu/hr divided by 3.413 mmBtu/MWh, and multiplied by 8,760 hr/yr.
“Project sponsor” means a person or an entity, including but not limited to the owner or operator of an EGU or a not-for-profit group, that provides the majority of funding for an energy efficiency and conservation, renewable energy, or clean technology project as listed in Sections 225.460 and 225.560, unless another person or entity is designated by a written agreement as the project sponsor for the purpose of applying for NOx allowances or NOx Ozone Season allowances from the CASA.
“Rated-energy efficiency” means the percentage of thermal energy input that is recovered as useable energy in the form of gross electrical output, useful thermal energy, or both that is used for heating, cooling, industrial processes, or other beneficial uses as follows:
For electric generators, rated-energy efficiency is calculated as one kilowatt hour (3,413 Btu) of electricity divided by the unit’s design heat rate using the higher heating value of the fuel, and expressed as a percentage.
For combined heat and power projects, rated-energy efficiency is calculated using the following formula:
REE = ((GO + UTE)/HI)
´
100
Where:
REE = Rated-energy efficiency, expressed as percentage.
GO = Gross electrical output of the system expressed in Btu/hr.
UTE = Useful thermal output from the system that is used for heating, cooling, industrial processes or other beneficial uses, expressed in Btu/hr.
HI = Heat input, based upon the higher heating value of fuel, in Btu/hr.
“Repowered” means, for the purposes of an EGU, replacement of a coal-fired boiler with one of the following coal-fired technologies at the same source as the coal-fired boiler:
Atmospheric or pressurized fluidized bed combustion;
Integrated gasification combined cycle;
Magnetohydrodynamics;
Direct and indirect coal-fired turbines;
Integrated gasification fuel cells; or
As determined by the USEPA in consultation with the United States Department of Energy, a derivative of one or more of the technologies under this definition and any other coal-fired technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste reduction relative to the performance of technology in widespread commercial use as of January 1, 2005.
“Rolling 12-month basis” means, for the purposes of Subparts B and F of this Part, a determination made on a monthly basis from the relevant data for a particular calendar month and the preceding 11 calendar months (total of 12 months of data), with two exceptions. For determinations involving one EGU, calendar months in which the EGU does not operate (zero EGU operating hours) must not be included in the determination, and must be replaced by a preceding month or months in which the EGU does operate, so that the determination is still based on 12 months of data. For determinations involving two or more EGUs, calendar months in which none of the EGUs covered by the determination operates (zero EGU operating hours) must not be included in the determination, and must be replaced by preceding months in which at least one of the EGUs covered by the determination does operate, so that the determination is still based on 12 months of data.
“Total energy output” means, with respect to a cogeneration unit, the sum of useful power and useful thermal energy produced by the cogeneration unit.
“Useful thermal energy” means, for the purpose of a cogeneration unit, the thermal energy that is made available to an industrial or commercial process, excluding any heat contained in condensate return or makeup water:
Used in a heating application (e.g., space heating or domestic hot water heating); or
Used in a space cooling application (e.g., thermal energy used by an absorption chiller).
| (Source: Amended at 31 Ill. Reg. ____________, effective _______________)
|
| | | | | |
| Section 225.140
| Incorporations by Reference |
| | | | | |
| The following materials are incorporated by reference. These incorporations do not include any later amendments or editions.
| | | | | | | |
| | | | | | | | | | | | | | |
| a)
| 40 CFR 60, 60.17, 60.45a, 60.49a(k)(1) and (p), 60.50a(h), and 60.4170 through 60.4176 (2005). |
| |
| b)
| 40 CFR 75 (2005 2006). |
| |
| c)
| 40 CFR 78 (2006). |
| |
| d)
| 40 CFR 96, CAIR SO2Trading Program, subparts AAA (excluding 40 CFR 96.204 and 96.206), subpart BBB, subpart FFF, subpart GGG, and subpart HHH (2006). |
| |
| e)
| 40 CFR 96, CAIR NOx Annual Trading Program, subparts AA (excluding 40 CFR 96.104, 96.105(b)(2), and 96.106), BB, FF, GG, and HH (2006). | | | | | | | | | |
| | | | | | | | | | | | | | |
| f)
| 40 CFR 96, CAIR NOx Ozone Season Trading Program, subparts AAAA (excluding 40 CFR 96.304, 96.305(b)(2), and 96.306), subpart BBBB, subpart FFFF, subpart GGGG, and subpart HHHH (2006). | | | | | | | | | |
| | | | | | | | | | | | | | |
gc) ASTM. The following methods from the American Society for Testing and Materials, 100 Barr Harbor Drive, P.O. Box C700, West Conshohocken PA 19428-2959, (610) 832-9585:
| 1)
| ASTM D388-77 (approved February 25, 1977), D388-90 (approved March 30, 1990), D388-91a (approved April 15, 1991), D388-95 (approved January 15, 1995), D388-98a (approved September 10, 1998), or D388-99 (approved September 10, 1999, reapproved in 2004), Classification of Coals by Rank. |
| |
| 2)
| ASTM D3173-03, Standard Test Method for Moisture in the Analysis Sample of Coal and Coke (Approved April 10, 2003). |
| |
| 3)
| ASTM D3684-01, Standard Test Method for Total Mercury in Coal by the Oxygen Bomb Combustion/Atomic Absorption Method (Approved October 10, 2001). |
| |
| 4)
| ASTM D5865-04, Standard Test Method for Gross Calorific Value of Coal and Coke (Approved April 1, 2004). |
| |
| 5)
| ASTM D6414-01, Standard Test Method for Total Mercury in Coal and Coal Combustion Residues by Acid Extraction or Wet Oxidation/Cold Vapor Atomic Absorption (Approved October 10, 2001). |
| |
| 6)
| ASTM D6784-02, Standard Test Method for Elemental, Oxidized, Particle-Bound and Total Mercury in Flue Gas Generated from Coal-Fired Stationary Sources (Ontario Hydro Method) (Approved April 10, 2002). |
| |
| h)
| Federal Energy Management Program, M&V Guidelines: Measurement and Verification for Federal Energy Projects, US Department of Energy, Office of Energy Efficiency and Renewable Energy, Version 2.2, DOE/GO-102000-0960 (September 2000). |
| |
| (Source: Amended at 31 Ill. Reg. ____________, effective _______________)
|
| | | | | |
| Section 225.150
|
| Commence Commercial Operation |
| |
Commence commercial operation means, for the purposes of Subparts C, D and E, with regard to a unit serving a generator:
| a)
| To have begun to produce steam, gas, or other heated medium used to generate electricity for sale or use, including test generation, except as provided in 40 CFR 96.105, 96.205, or 96.305, as incorporated by reference in Section 225.140. |
| |
| 1)
| For a unit that is a CAIR SO2 unit, CAIR NOx unit, or a CAIR NOx Ozone Season unit pursuant to 40 CFR 96.104, 96.204 or 96.304 Sections 225.305, 225.405, and 225.505, respectively, on the date the unit commences commercial operation on the later of November 15, 1990 or the date the unit commences commercial operation as defined in subsection (a) of this Section and that subsequently undergoes a physical change (other than replacement of the unit by a unit at the same source), such date will remain the unit’s date of commencement of commercial operation, which will continue to be treated as the same unit. |
| |
| 2)
| For a unit that is a CAIR SO2 unit, CAIR NOx unit, or a CAIR NOx Ozone Season unit pursuant to 40 CFR 96.104, 96.204 or 96.304 Sections 225.305, 225.405, and 225.505, respectively, on the later of November 15, 1990 or the date the unit commences commercial operation as defined in subsection (a) of this Section and that is subsequently replaced by a unit at the same source (e.g., repowered), such date will remain the replaced unit’s date of commencement of commercial operation, and the replaced replacement unit will be treated as a separate unit with a separate date for commencement of commercial operation as defined in subsection (a) or (b) of this Section as appropriate. |
| |
| b)
| Notwithstanding subsection (a) of this Section and except as provided in 40 CFR 96.105, 96.205, or 96.305 for a unit that is not a CAIR SO2 unit, CAIR NOx unit, or a CAIR NOx Ozone Season unit pursuant to Section 225.305, 225.405, or 225.505, respectively, on the later of November 15, 1990 or the date the unit commences commercial operation as defined in subsection (a) of this Section, the unit’s date for commencement of commercial operation will be the date on which the unit becomes an affected unit a CAIR SO2 unit, CAIR NOx unit, or CAIR NOx Ozone Season unit pursuant to Section 225.305, 225.405, or 225.505, respectively. |
| |
| 1)
| For a unit with a date for commencement of commercial operation as defined in subsection (b) of this Section and that subsequently undergoes a physical change (other than replacement of the unit by a unit at the same source), such date will remain the unit’s date of commencement of commercial operation, which shall continue to be treated as the same unit. |
| |
| 2)
| For a unit with a date for commencement of commercial operation as defined in subsection (b) of this Section and that is subsequently replaced by a unit at the same source (e.g., repowered), such date will remain the replaced unit’s date of commencement of commercial operation, and the replaced replacement unit will be treated as a separate unit with a separate date for commencement of commercial operation as defined in subsection (a) or (b) of this Section as appropriate. |
| |
(Source: Added at 31 Ill. Reg. _________, effective _____________)
SUBPART C: CLEAN AIR ACT INTERSTATE RULE (CAIR) SO2 TRADING PROGRAM
|
| |
| Section 225.300
|
| Purpose |
| |
| The purpose of this Subpart C is to control the emissions of sulfur dioxide (SO2) from EGUs annually by implementing the CAIR SO2 Trading Program pursuant to 40 CFR 96, as incorporated by reference in Section 225.140.
|
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.305 Applicability
| a)
| Except as provided in subsections (b)(1), (b)(3), and (b)(4) of this Section: |
| |
| 1)
| The following units are CAIR SO2 units, and any source that includes one or more such units is a CAIR SO2 source subject to the requirements of this Subpart C: any stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine serving at any time, since the later of November 15, 1990 or the start-up of the unit’s combustion chamber, a generator with nameplate capacity of more than 25 MWe producing electricity for sale. |
| |
| 2)
| If a stationary boiler or stationary combustion turbine that, pursuant to subsection (a)(1) of this Section, is not a CAIR SO2 unit begins to combust fossil fuel or to serve a generator with nameplate capacity of more than 25 MWe producing electricity for sale, the unit will become a CAIR SO2 unit as provided in subsection (a)(1) of this Section on the first date on which it both combusts fossil fuel and serves such generator. |
| |
| b)
| The units that meet the requirements set forth in subsections (b)(1), (b)(3), and (b)(4) of this Section will not be CAIR SO2 units and units that meet the requirements of subsections (b)(2) and (b)(5) of this Section are CAIR SO2 units: |
| |
| 1)
| Any unit that would otherwise be classified as is a CAIR SO2 unit pursuant to subsection (a)(1) or (a)(2) of this Section and: |
| |
| A)
| Qualifies as a cogeneration unit during the 12-month period starting on the date the unit first produces electricity and continues continuing to qualify as a cogeneration unit; and |
| |
| B)
| Does not serve at any time, since the later of November 15, 1990 or the start-up of the unit’s combustion chamber, a generator with nameplate capacity of more than 25 MWe supplying any calendar year more than one-third of the of the unit’s potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution for sale. |
| |
| 2)
| If a unit qualifies as a cogeneration unit during the 12-month period starting on the date the unit first produces electricity and meets the requirements of subsection (b)(1) of this Section for at least one calendar year, but subsequently no longer meets all such requirements, the unit shall become a CAIR SO2 unit starting on the earlier of January 1 after the first calendar year during which the unit no longer qualifies as a cogeneration unit or January 1 after the first calendar year during which the unit no longer meets the requirements of subsection (b)(1)(B) of this Section. |
| |
| 3)
| Any unit that would otherwise be classified as is a CAIR SO2 unit pursuant to subsection (a)(1) or (a)(2) of this Section commencing operation before January 1, 1985 and: |
| |
| A)
| Qualifies as a solid waste incineration unit; and |
| |
| B)
| With Has an average annual fuel consumption of non-fossil fuel for 1985-1987 exceeding 80 percent (on a Btu basis) and an average annual fuel consumption of non-fossil fuel for any three consecutive calendar years after 1990 exceeding 80 percent (on a Btu basis). |
| |
| 4)
| Any unit that would otherwise be classified as is a CAIR SO2 unit under subsection (a)(1) or (a)(2) of this Section commencing operation on or after January 1, 1985 and: |
| |
| A)
| Qualifies as a solid waste incineration unit; and |
| |
| B)
| With Has an average annual fuel consumption of non-fossil fuel the first three years of operation exceeding 80 percent (on a Btu basis) and an average annual fuel consumption of non-fossil fuel for any three consecutive calendar years after 1990 exceeding 80 percent (on a Btu basis). |
| |
| 5)
| If a unit qualifies as a solid waste incineration unit and meets the requirements of subsection (b)(3) or (b)(4) of this Section for at least three consecutive years, but subsequently no longer meets all such requirements, the unit shall become a CAIR SO2 unit starting on the earlier of January 1 after the first three consecutive calendar years after 1990 for which the unit has an average annual fuel consumption of fuel of 20 percent or more. |
| |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| Section 225.310
| Compliance Requirements |
| |
| a)
|
The owner or operator designated representative of a CAIR SO2 unit must comply with the requirements of the CAIR SO2 Trading Program for Illinois as set forth in this Subpart C and 40 CFR 96, subpart AAA (CAIR SO2 Trading Program General Provisions, excluding 40 CFR 96.204, and 96.206); 40 CFR 96, subpart BBB (CAIR Designated Representative for CAIR SO2 Sources); 40 CFR 96, subpart FFF (CAIR SO2 Allowance Tracking System); 40 CFR 96, subpart GGG (CAIR SO2 Allowance Transfers); and 40 CFR 96, subpart HHH (Monitoring and Reporting); as incorporated by reference in Section 225.140 . |
| |
| 1)
|
| The owner or operator of each source with one or more CAIR SO2 units at the source must apply for a permit issued by the Agency with federally enforceable conditions covering the CAIR SO2 Trading Program (“CAIR permit”) that complies with the requirements of Section 225.320 (Permit Requirements). |
| |
| 2)
|
| The owner or operator of each CAIR SO2 source and each CAIR SO2 unit at the source must operate the CAIR SO2 unit in compliance with its CAIR permit. |
| |
| c)
| Monitoring requirements: |
| |
| 1)
|
| The owner or operator of each CAIR SO2 source and each CAIR SO2 unit at the source must comply with the monitoring, reporting and recordkeeping requirements of 40 CFR 96, subpart HHH. The CAIR designated representative of each CAIR SO2 source and each CAIR SO2 unit at the CAIR SO2 source must comply with those sections of the monitoring, reporting and recordkeeping requirements of 40 CFR 96, subpart HHH, applicable to the CAIR designated representative. |
| |
| 2)
|
| The compliance of each CAIR SO2 source with the emissions limitation pursuant to subsection (d) of this Section will be determined by the emissions measurements recorded and reported in accordance with 40 CFR 96, subpart HHH and 40 CFR 75. |
| |
| d)
| Emission requirements: |
| |
| 1)
| By the allowance transfer deadline, midnight of March 1, 2011, and by midnight of March 1 of each subsequent year if March 1 is a business day, the owner or operator of each CAIR SO2 source and each CAIR SO2 unit at the source must hold a tonnage equivalent in CAIR SO2 allowances available for compliance deductions pursuant to 40 CFR 96.254(a) and (b) in the CAIR SO2 source’s CAIR SO2 Allowance System Tracking compliance account. If March 1 is not a business day, tThe allowance transfer deadline means by midnight of March 1 (if it is a business day) or midnight of the first business day thereafter. The number of allowances held on the allowance transfer deadline may not be less than the total tonnage equivalent of the tons of SO2 emissions for the control period from all CAIR SO2 units at the CAIR SO2 source, as determined in accordance with 40 CFR 96, subpart HHH. |
| |
| 2)
|
Each ton of excess emissions of SO2 emitted by a CAIR SO2 source unit in excess of the tonnage authorization of CAIR SO2 allowances held by the owner or operator for each CAIR SO2 unit in its CAIR SO2 Allowance System Tracking account for each day of a control period, starting in 2010 of the applicable control period will constitute a separate violation of this Subpart C, the Clean Air Act, and the Act. |
| |
| 3)
|
Each CAIR SO2 unit will be subject to the monitoring requirements of subsection (cd)(1) of this Section for the control period starting on the later of January 1, 2009 2010 or the deadline for meeting the unit’s monitoring certification requirements pursuant to 40 CFR 96.270(b)(1) or (2) and for each control period thereafter. |
| |
| 4)
|
| CAIR SO2 allowances must be held in, deducted from, or transferred into or among allowance accounts in accordance with this Subpart and 40 CFR 96, subparts FFF and GGG. |
| |
| 5)
|
| In order to comply with the requirements of subsection (d)(1) of this Section, a CAIR SO2 allowance may not be deducted for compliance according to subsection (d)(1) of this Section for a control period in a calendar year before the year for which the allowance is allocated. |
| |
| 6)
|
| A CAIR SO2 allowance is a limited authorization to emit SO2 in accordance with the CAIR SO2 Trading Program. No provision of the CAIR SO2 Trading Program, the CAIR permit application, the CAIR permit, or a retired unit exemption pursuant to 40 CFR 96.205, and no provision of law, will be construed to limit the authority of the United States or the State to terminate or limit this authorization. |
| |
| 7)
|
A CAIR SO2 allowance allocated by USEPA pursuant to the CAIR SO2 Trading Program does not constitute a property right. |
| |
| 8)
|
Upon recordation by USEPA pursuant to 40 CFR 96 subpart FFF or subpart GGG, every allocation, transfer, or deduction of a CAIR SO2 allowance to or from a CAIR SO2 source’s compliance account, as defined by 40 CFR 96.202, is deemed to amend automatically, and become a part of, any CAIR permit of the CAIR SO2 source. This automatic amendment of the CAIR permit will be deemed an operation of law and will not require any further review. |
| |
| e)
| Recordkeeping and reporting requirements: |
| |
| 1)
| Unless otherwise provided, the owner or operator of the CAIR SO2 source and each CAIR SO2 unit at the source must keep on site at the source each of the documents listed in subsections (e)(1)(A) through (e)(1)(D) of this Section for a period of five (5) years from the date the document is created. This period may be extended for cause, at any time prior to the end of five years, in writing by the Agency or USEPA. |
| |
| A)
| The certificate of representation for the CAIR designated representative for the source and each CAIR SO2 unit at the source, all documents that demonstrate the truth of the statements in the certificate of representation, provided that the certificate and documents must be retained on site at the source beyond such five-year period until the documents are superseded because of the submission of a new certificate of representation, pursuant to 40 CFR 96.213, changing the CAIR designated representative. |
| |
| B)
| All emissions monitoring information, in accordance with 40 CFR 96, subpart HHH. |
| |
| C)
| Copies of all reports, compliance certifications, and other submissions and all records made or required pursuant to the CAIR SO2 Trading Program or documents necessary to demonstrate compliance with the requirements of the CAIR SO2 Trading Program or with the requirements of this Subpart C. |
| |
| D)
| Copies of all documents used to complete a CAIR permit application and any other submission or documents used to demonstrate compliance pursuant to the CAIR SO2 Trading Program. |
| |
| 2)
| The CAIR designated representative of a CAIR SO2 source and each CAIR SO2 unit at the source must submit to the Agency and USEPA the reports and compliance certifications required pursuant to the CAIR SO2 Trading Program, including those pursuant to 40 CFR 96, subpart HHH. |
| |
| 1)
| No revision of a permit for a CAIR SO2 unit may excuse any violation of the requirements of this Subpart C or the requirements of the CAIR SO2 Trading Program. |
| |
| 2)
| Each CAIR SO2 source and each CAIR SO2 unit must meet the requirements of the CAIR SO2 Trading Program. |
| |
| 3)
| Any provision of the CAIR SO2 Trading Program that applies to a CAIR SO2 source (including any provision applicable to the CAIR designated representative of a CAIR SO2 source) will also apply to the owner and operator of the CAIR SO2 source and to the owner and operator of each CAIR SO2 unit at the source. |
| |
| 4)
| Any provision of the CAIR SO2 Trading Program that applies to a CAIR SO2 unit (including any provision applicable to the CAIR designated representative of a CAIR SO2 unit) will also apply to the owner and operator of the CAIR SO2 unit. |
| |
| 5)
| The CAIR designated representative of a CAIR SO2 unit that has excess SO2 emissions in any control period must surrender the allowances as required for deduction pursuant to 40 CFR 96.254(d)(1). |
| |
| 6)
| The owner or operator of a CAIR SO2 unit that has excess SO2 emissions in any control period must pay any fine, penalty, or assessment or comply with any other remedy imposed pursuant to the Act and 40 CFR 96.254(d)(2). |
| |
| g)
| Effect on other authorities: No provision of the CAIR SO2 Trading Program, a CAIR permit application, a CAIR permit, or a retired unit exemption pursuant to 40 CFR 96.205 will be construed as exempting or excluding the owner and operator and, to the extent applicable, the CAIR designated representative of a CAIR SO2 source or a CAIR SO2 unit from compliance with any other regulation promulgated pursuant to the CAA, the Act, any State regulation or permit, or a federally enforceable permit. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.315 Appeal Procedures
The appeal procedures for decisions of USEPA pursuant to the CAIR SO2 Trading Program are set forth in 40 CFR 78, as incorporated by reference in Section 225.140.
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.320 Permit Requirements
| 1)
| The owner or operator of each source with a CAIR SO2 unit is required to submit: |
| |
| A)
| A complete permit application addressing all applicable CAIR SO2 Trading Program requirements for a permit meeting the requirements of this Section 225.320, applicable to each CAIR SO2 unit at the source. Each CAIR permit must contain elements required for a complete CAIR permit application pursuant to subsection (b)(2) of this Section. |
| |
| B)
| Any supplemental information that the Agency determines is necessary in order to review a CAIR permit application and issue a CAIR permit. |
| |
| 2)
| Each CAIR permit will be issued pursuant to Section 39 or 39.5 of the Act, must contain federally enforceable conditions addressing all applicable CAIR SO2 Trading Program and requirements, and will be a complete and segregable portion of the source’s entire permit pursuant to subsection (a)(1) of this Section. |
| |
| 3)
| No CAIR permit may be issued and no CAIR SO2 Allowance System Tracking account may be established for the CAIR SO2 source, until the Agency and USEPA have received a complete certificate of representation for a CAIR designated representative or alternate designated representative pursuant to 40 CFR 96, subpart BBB, for a source and the CAIR SO2 unit at the source. |
| |
| 4)
| For all CAIR SO2 units that commenced operation before July 1, 2008, the owner or operator of the unit must submit a CAIR permit application meeting the requirements of this Section 225.320 on or before July 1, 2008. |
| |
| 5)
| For CAIR SO2 units that commence operation on or after July 1, 2008, and that are and are not subject to Section 39.5 of the Act, the owner or operator of such units must submit applications for construction and operating permits pursuant to the requirements of Sections 39 and 39.5 of the Act, as applicable, and 35 Ill. Adm. Code 201 and the applications must specify that they are applying for CAIR permits and must address the CAIR permit application requirements of this Section 225.320. |
| |
| 1)
| Duty to apply: The owner or operator of any source with one or more CAIR SO2 units must submit to the Agency a CAIR permit application for the source covering each CAIR SO2 unit pursuant to subsection (b)(2) of this Section by the applicable deadline in subsection (a)(4) or (a)(5) of this Section. The owner or operator of any source with one or more CAIR SO2 units must reapply for a CAIR permit for the source as required by this Subpart, 35 Ill. Adm. Code 201, and, as applicable, Sections 39 and 39.5 of the Act. |
| |
| 2)
| Information requirements for CAIR permit applications: A complete CAIR permit application must include the following elements concerning the source for which the application is submitted: |
| |
| A)
| Identification of the source, including plant name. The ORIS (Office of Regulatory Information Systems) or facility code assigned to the source by the Energy Information Administration must also be included, if applicable; |
| |
| B)
| Identification of each CAIR SO2 unit at the source; and |
| |
| C)
| The compliance requirements applicable to each CAIR SO2 unit as set forth in Section 225.310. |
| |
| 3)
| An application for a CAIR permit will be treated as a modification of the CAIR SO2 source’s existing federally enforceable permit, if such a permit has been issued for that CAIR SO2 source, and will be subject to the same procedural requirements. When the Agency issues a CAIR permit pursuant to the requirements of this Section 225.320, it will be incorporated into and become part of that CAIR SO2 source’s existing federally enforceable permit. |
| |
| c)
| Permit content: Each CAIR permit is deemed to incorporate automatically the definitions and terms pursuant to specified in Section 225.120 225.130 and 40 CFR 96.202, as incorporated by reference in Section 225.140 and, upon recordation of USEPA under 40 CFR 96, subparts FFF and GGG, as incorporated by reference in Section 225.140, every allocation, transfer, or deduction of a CAIR SO2 allowance to or from the compliance account of the CAIR SO2 source covered by the permit. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.325 Trading Program
| a)
| The CAIR SO2 Trading Program is administered by USEPA. CAIR SO2 allowances are issued as described by the definition for allocate in 40 CFR 96.220 202, as incorporated by reference in Section 225.140. The amount of CAIR SO2 allowances to be credited to a CAIR SO2 source’s CAIR SO2 Allowance Tracking System account for a CAIR SO2 unit will be determined in accordance with 40 CFR 96.253, as incorporated by reference in Section 225.140. |
| |
| b)
| A CAIR SO2 allowance is a limited authorization to emit SO2 during the calendar year for which the allowance is allocated or any calendar year thereafter pursuant to the CAIR SO2 Trading Program as follows: |
| |
| 1)
| For one CAIR SO2 allowance allocated for a control period in a year before 2010, one ton of SO2, except as provided for in the compliance deductions pursuant to 40 CFR 96.254(b); |
| |
| 2)
| For one CAIR SO2 allowance allocated for a control period in 2010 through 2014, 0.50 ton of SO2, except as provided for in the compliance deductions pursuant to 40 CFR 96.254(b); and |
| |
| 3)
| For one CAIR SO2 allowance allocated for a control period in 2015 or later, 0.35 ton of SO2, except as provided for in the compliance deductions pursuant to 40 CFR 96.254(b). |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| |
| SUBPART D: CAIR NOx ANNUAL TRADING PROGRAM
| |
| |
The purpose of this Subpart D is to control the annual emissions of nitrogen oxides (NOx) from EGUs by determining allocations and implementing the CAIR NOx Annual Trading Program.
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| |
| Section 225.405
|
| Applicability |
| |
| a)
| Except as provided in subsections (b)(1), (b)(3), and (b)(4) of this Section: |
| |
| 1)
| The following units are CAIR NOx units, and any source that includes one or more such units is a CAIR NOx source subject to the requirements of this Subpart D: any stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine serving at any time, since the later of November 15, 1990 or the start-up of the unit’s combustion chamber, a generator with nameplate capacity of more than 25 MWe producing electricity for sale. |
| |
| 2)
| If a stationary boiler or stationary combustion turbine that, pursuant to subsection (a)(1) of this Section, is not a CAIR NOx unit begins to combust fossil fuel or to serve a generator with nameplate capacity of more than 25 MWe producing electricity for sale, the unit will become a CAIR NOx unit as provided in subsection (a)(1) of this Section on the first date on which it both combusts fossil fuel and serves such generator. |
| |
| b)
| The units that meet the requirements set forth in subsections (b)(1), (b)(3), and (b)(4) of this Section will not be CAIR NOx units and units that meet the requirements of subsections (b)(2) and (b)(5) of this Section are CAIR NOx units: |
| |
| 1)
| Any unit that is would otherwise be classified as a CAIR NOx unit pursuant to subsection (a)(1) or (a)(2) of this Section and: |
| |
| A)
| Qualifies as a cogeneration unit during the 12-month period starting on the date the unit first produces electricity and continuing continues to qualify as a cogeneration unit; and |
| |
| B)
| Does not serve at any time, since the later of November 15, 1990 or the start-up of the unit’s combustion chamber, a generator with nameplate capacity of more than 25 MWe supplying any calendar year more than one-third of the of the unit’s potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution for sale. |
| |
| 2)
| If a unit qualifies as a cogeneration unit during the 12-month period starting on the date the unit first produces electricity and meets the requirements of subsection (b)(1) of this Section for at least one calendar year, but subsequently no longer meets all such requirements, the unit shall become a CAIR NOx unit starting on the earlier of January 1 after the first calendar year during which the unit no longer qualifies as a cogeneration unit or January 1 after the first calendar year during which the unit no longer meets the requirements of subsection (b)(1)(B) of this Section. |
| |
| 3)
| Any unit that is would otherwise be classified as a CAIR NOx unit pursuant to subsection (a)(1) or (a)(2) of this Section commencing operation before January 1, 1985 and: |
| |
| A)
| Qualifies as a solid waste incineration unit; and |
| |
| B)
| With Has an average annual fuel consumption of non-fossil fuel for 1985-1987 exceeding 80 percent (on a Btu basis) and an average annual fuel consumption of non-fossil fuel for any three consecutive calendar years after 1990 exceeding 80 percent (on a Btu basis). | |
| | |
| 4)
| Any unit that is would otherwise be classified as a CAIR NOx unit under subsection (a)(1) or (a)(2) of this Section commencing operation on or after January 1, 1985 and: |
| |
| A)
| Qualifies as a solid waste incineration unit; and |
| |
| B)
| With Has an average annual fuel consumption of non-fossil fuel the first three years of operation exceeding 80 percent (on a Btu basis) and an average annual fuel consumption of non-fossil fuel for any three consecutive calendar years after 1990 exceeding 80 percent (on a Btu basis). |
| |
| 5)
| If a unit qualifies as a solid waste incineration unit and meets the requirements of subsection (b)(3) or (b)(4) of this Section for at least three consecutive years, but subsequently no longer meets all such requirements, the unit shall become a CAIR NOx unit starting on the earlier of January 1 after the first three consecutive calendar years after 1990 for which the unit has an average annual fuel consumption of fuel of 20 percent or more. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| |
| Section 225.410
| Compliance Requirements |
| |
| a)
|
The owner or operator designated representative of a CAIR NOx unit must comply with the requirements of the CAIR NOx Annual Trading Program for Illinois as set forth in this Subpart D and 40 CFR 96, subpart AA (NOx Annual Trading Program General Provisions, excluding 40 CFR 96.104, 96.105(b)(2), and 96.106); 40 CFR 96, subpart BB (CAIR Designated Representative for CAIR NOx Sources); 40 CFR 96, subpart FF (CAIR NOx Allowance Tracking System); 40 CFR 96, subpart GG (CAIR NOx Allowance Transfers); and 40 CFR 96, subpart HH (Monitoring and Reporting); as incorporated by reference in Section 225.140. |
| |
| 1)
|
The owner or operator designated representative of each source with one or more CAIR NOx units at the source must apply for a permit issued by the Agency with federally enforceable conditions covering the CAIR NOx Annual Trading Program (“CAIR permit”) that complies with the requirements of Section 225.420 (Permit Requirements). |
| |
| 2)
|
| The owner or operator of each CAIR NOx source and each CAIR NOx unit at the source must operate the CAIR NOx unit in compliance with its CAIR permit. |
| |
| c)
| Monitoring requirements: |
| |
| 1)
|
| The owner or operator of each CAIR NOx source and each CAIR NOx unit at the source must comply with the monitoring, reporting, and recordkeeping requirements of 40 CFR 96, subpart HH and Section 225.450. The CAIR designated representative of each CAIR NOx source and each CAIR NOx unit at the CAIR NOx source must comply with those sections of the monitoring, reporting and recordkeeping requirements of 40 CFR 96, subpart HH, applicable to a CAIR designated representative. |
| |
| 2)
|
| The compliance of each CAIR NOx source with the NOx emissions limitation pursuant to subsection (d) of this Section will be determined by the emissions measurements recorded and reported in accordance with 40 CFR 96, subpart HH. |
| |
| d)
| Emission requirements: |
| |
| 1)
| By the allowance transfer deadline, midnight of March 1, 2010, and by midnight March 1 of each subsequent year if March 1 is a business day, the allowance transfer deadline, the owner or operator of each CAIR NOx source and each CAIR NOx unit at the source must hold CAIR NOx allowances available for compliance deductions pursuant to 40 CFR 96.154(a) in the CAIR NOx source’s CAIR NOx compliance account. If March 1 is not a business day, tThe allowance transfer deadline means by midnight of March 1 (if it is a business day) or midnight of the first business day thereafter. The number of allowances held on the allowance transfer deadline may not be less than the tons of NOx emissions for the control period from all CAIR NOx units at the source, as determined in accordance with 40 CFR 96, subpart HH. |
| |
| 2)
|
Each ton of excess emissions of a CAIR NOx source for each day in a control period, starting in 2009, emitted in excess of the number of CAIR NOx allowances held by the owner or operator for each CAIR NOx unit in its CAIR NOx compliance account for each day of the applicable control period will constitute a separate violation of this Subpart D, the Act, and the CAA. |
| |
| 3)
|
Each CAIR NOx unit will be subject to the monitoring requirements of subsection (cd)(1) of this Section for the control period starting on the later of January 1, 2009 or the deadline for meeting the unit’s monitoring certification requirements pursuant to 40 CFR 96.170(b)(1) or (b)(2) and for each control period thereafter. |
| |
| 4)
|
| CAIR NOx allowances must be held in, deducted from, or transferred into or among allowance accounts in accordance with this Subpart and 40 CFR 96, subparts FF and GG. |
| |
| 5)
|
| In order to comply with the requirements of subsection (d)(1) of this Section, a CAIR NOx allowance may not be deducted for compliance according to subsection (d)(1) of this Section for a control period in a year before the calendar year for which the allowance is allocated. |
| |
| 6)
|
A CAIR NOx allowance allocated by the Agency or USEPA pursuant to the CAIR NOx Annual Trading Program is a limited authorization to emit one ton of NOx in accordance with the CAIR NOx Trading Program. No provision of the CAIR NOx Trading Program, the CAIR NOx permit application, the CAIR permit, or a retired unit exemption pursuant to 40 CFR 96.105, and no provision of law, will be construed to limit the authority of the United States or the State to terminate or limit this authorization. |
| |
| 7)
|
A CAIR NOx allowance allocated by the Agency or USEPA pursuant to the CAIR NOx Annual Trading Program does not constitute a property right. |
| |
| 8)
| Upon recordation by USEPA pursuant to 40 CFR 96, subpart FF or 40 CFR 96, subpart GG, every allocation, transfer, or deduction of a CAIR NOx allowance to or from a CAIR NOx source compliance account is deemed to amend automatically, and become a part of, any CAIR NOx permit of the CAIR NOx source. This automatic amendment of the CAIR permit will be deemed an operation of law and will not require any further review. |
| |
| e)
| Recordkeeping and reporting requirements: |
| |
| 1)
| Unless otherwise provided, the owner or operator of the CAIR NOx source and each CAIR NOx unit at the source must keep on site at the source each of the documents listed in subsections (e)(1)(A) through (e)(1)(E) of this Section for a period of five years from the date the document is created. This period may be extended for cause, at any time prior to the end of five years, in writing by the Agency or USEPA. |
| |
| A)
| The certificate of representation for the CAIR designated representative for the source and each CAIR NOx unit at the source, all documents that demonstrate the truth of the statements in the certificate of representation, provided that the certificate and documents must be retained on site at the source beyond such five-year period until the documents are superseded because of the submission of a new certificate of representation, pursuant to 40 CFR 96.113, changing the CAIR designated representative. |
| |
| B)
| All emissions monitoring information, in accordance with 40 CFR 96, subpart HH. |
| |
| C)
| Copies of all reports, compliance certifications, and other submissions and all records made or required pursuant to the CAIR NOx Annual Trading Program or documents necessary to demonstrate compliance with the requirements of the CAIR NOx Annual Trading Program or with the requirements of this Subpart D. |
| |
| D)
| Copies of all documents used to complete a CAIR NOx permit application and any other submission or documents used to demonstrate compliance pursuant to the CAIR NOx Annual Trading Program. |
| |
| E)
| Copies of all records and logs for gross electrical output and useful thermal energy required by Section 225.450. |
| |
| 2)
| The CAIR designated representative of a CAIR NOx source and each CAIR NOx unit at the source must submit to the Agency and USEPA the reports and compliance certifications required pursuant to the CAIR NOx Annual Trading Program, including those pursuant to 40 CFR 96, subpart HH. |
| |
| 1)
| No revision of a permit for a CAIR NOx unit may excuse any violation of the requirements of this Subpart D or the requirements of the CAIR NOx Annual Trading Program. |
| |
| 2)
| Each CAIR NOx source and each CAIR NOx unit must meet the requirements of the CAIR NOx Annual Trading Program. |
| |
| 3)
| Any provision of the CAIR NOx Annual Trading Program that applies to a CAIR NOx source (including any provision applicable to the CAIR designated representative of a CAIR NOx source) will also apply to the owner and operator of the CAIR NOx source and to the owner and operator of each CAIR NOx unit at the source. |
| |
| 4)
| Any provision of the CAIR NOx Annual Trading Program that applies to a CAIR NOx unit (including any provision applicable to the CAIR designated representative of a CAIR NOx unit) will also apply to the owner and operator of the CAIR NOx unit. |
| |
| 5)
| The CAIR designated representative of a CAIR NOx unit that has excess emissions in any control period must surrender the allowances as required for deduction pursuant to 40 CFR 96.154(d)(1). |
| |
| 6)
| The owner or operator of a CAIR NOx unit that has excess NOx emissions in any control period must pay any fine, penalty, or assessment or comply with any other remedy imposed pursuant to the Act and 40 CFR 96.154(d)(2). |
| |
| g)
| Effect on other authorities: No provision of the CAIR NOx Annual Trading Program, a CAIR permit application, a CAIR permit, or a retired unit exemption pursuant to 40 CFR 96.105 will be construed as exempting or excluding the owner and operator and, to the extent applicable, the CAIR designated representative of a CAIR NOx source or a CAIR NOx unit from compliance with any other regulation promulgated pursuant to the CAA, the Act, any State regulation or permit, or a federally enforceable permit. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.415 Appeal Procedures
The appeal procedures for decisions of USEPA pursuant to the CAIR NOx Annual Trading Program are set forth in 40 CFR 78, as incorporated by reference in Section 225.140.
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| Section 225.420
| Permit Requirements |
| |
| 1)
| The owner or operator of each source with a CAIR NOx unit is required to submit: |
| |
| A)
| A complete permit application addressing all applicable CAIR NOx Annual Trading Program requirements for a permit meeting the requirements of this Section 225.420, applicable to each CAIR NOx unit at the source. Each CAIR permit must contain elements required for a complete CAIR permit application pursuant to subsection (b)(2) of this Section. |
| |
| B)
| Any supplemental information that the Agency determines necessary in order to review a CAIR permit application and issue any CAIR permit. |
| |
| 2)
| Each CAIR permit will be issued pursuant to Sections 39 and 39.5 of the Act, must contain federally enforceable conditions addressing all applicable CAIR NOx Annual Trading Program requirements, and must will be a complete and segregable portion of the source’s entire permit pursuant to subsection (a)(1) of this Section. |
| |
| 3)
| No CAIR permit may be issued, and no CAIR NOx compliance account may be established for a CAIR NOx source, until the Agency and USEPA have received a complete certificate of representation for a CAIR designated representative pursuant to 40 CFR 96, subpart BB, for the CAIR NOx source and the CAIR NOx unit at the source. |
| |
| 4)
| For all CAIR NOx units that commenced operation before July 1December 31, 2007, the owner or operator of the unit must submit a CAIR permit application meeting the requirements of this Section 225.420 on or before July 1December 31, 2007. |
| |
| 5)
| For all CAIR NOx units that commence operation on or after July 1December 31, 2007, the owner or operator of these units must submit applications for construction and operating permits pursuant to the requirements of Sections 39 and 39.5 of the Act, as applicable, and 35 Ill. Adm. Code 201 and the applications must specify that they are applying for CAIR permits and must address the CAIR permit application requirements of this Section 225.420. |
| |
| 1)
| Duty to apply: The owner or operator of any source with one or more CAIR NOx units must submit to the Agency a CAIR permit application for the source covering each CAIR NOx unit pursuant to subsection (b)(2) of this Section by the applicable deadline in subsection (a)(4) or (a)(5) of this Section. The owner or operator of any source with one or more CAIR NOx units must reapply for a CAIR permit for the source as required by this Subpart, 35 Ill. Adm. Code 201, and, as applicable, Sections 39 and 39.5 of the Act. |
| |
| 2)
| Information requirements for CAIR permit applications: A complete CAIR permit application must include the following elements concerning the source for which the application is submitted: |
| |
| A)
| Identification of the source, including plant name. The ORIS (Office of Regulatory Information Systems) or facility code assigned to the source by the Energy Information Administration must also be included, if applicable; |
| |
| B)
| Identification of each CAIR NOx unit at the source; and |
| |
| C)
| The compliance requirements applicable to each CAIR NOx unit as set forth in Section 225.410. |
| |
| 3)
| An application for a CAIR permit will be treated as a modification of the CAIR NOx source’s existing federally enforceable permit, if such a permit has been issued for that source, and will be subject to the same procedural requirements. When the Agency issues a CAIR permit pursuant to the requirements of this Section 225.420, it will be incorporated into and become part of that source’s existing federally enforceable permit. |
| |
| c)
| Permit content: Each CAIR permit is deemed to incorporate automatically the definitions and terms pursuant to specified in Section 225.120225.130 and 40 CFR 96.102, as incorporated by reference in Section 225.140 and, upon recordation of USEPA under 40 CFR 96, subparts FF and GG, as incorporated by reference in Section 225.140, every allocation, transfer, or deduction of a CAIR NOx allowance to or from the compliance account of the CAIR NOx source covered by the permit. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
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| Section 225.425
| Annual Trading Budget |
| |
The CAIR NOx Annual Trading budget available for allowance allocations for each control period will be determined as follows:
| a)
| The total base CAIR NOx Annual Trading budget is 76,230 tons per control period for the years 2009 through 2014, subject to a reduction for two set-asides, the New Unit Set-Aside (NUSA) and the Clean Air Set-Aside (CASA). Five percent of the budget will be allocated to the NUSA and 25 percent will be allocated to the CASA, resulting in a CAIR NOx Annual Trading budget of 53,361 tons available for allocation per control period pursuant to Section 225.440. The requirements of the NUSA are set forth in Section 225.445, and the requirements of the CASA are set forth in Sections 225.455 through 225.470. |
| |
| b)
| The total base CAIR NOx Annual Trading budget is 63,525 tons per control period for the year 2015 and thereafter, subject to a reduction for two set-asides, the NUSA and the CASA. Five percent of the budget will be allocated to the NUSA and 25 percent will be allocated to the CASA, resulting in a CAIR NOx Annual Trading budget of 44,468 tons available for allocation per control period pursuant to Section 225.440. |
| |
| c)
| If USEPA adjusts the total base CAIR NOx Annual Trading budget for any reason, the Agency will adjust the base CAIR NOx Annual Trading budget and the CAIR NOx Annual Trading budget available for allocation, accordingly. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| Section 225.430
| Timing for Annual Allocations |
| |
| a)
| No later than July 31On or before September 25, 2007, the Agency will submit to USEPA the CAIR NOx allowance allocations, in accordance with Sections 225.435 and 225.440, for the 2009, 2010, and 2011 control periods. | |
| | | |
b) By October 31, 2008, and October 31 of each year thereafter, the Agency will submit to USEPA the CAIR NOx allowance allocations in accordance with Sections 225.435 and 225.440, for the control period four years after the year of the applicable deadline for submission pursuant to this Section 225.430. For example, on October 31, 2008, the Agency will submit to USEPA the allocations for the 2012 control period.
| c)
| The Agency will allocate allowances from the NUSA to For CAIR NOx units that commence commercial operation on or after January 1, 2006, that have not been allocated allowances under Section 225.440 for the applicable or any preceding control period, the Agency will allocate allowances from the NUSA in accordance with Section 255.445. The Agency will report these allocations to USEPA by October 31 of the applicable control period. For example, on October 31, 2009, the Agency will submit to USEPA the allocations from the NUSA for the 2009 control period. |
| | | |
| d)
| The Agency will allocate allowances from the CASA to energy efficiency, renewable energy, and clean technology projects pursuant to the criteria in Sections 225.455 through 225.470. The Agency will report these allocations to USEPA by October 1 of each year. For example, on October 1, 2009, the Agency will submit to USEPA the allocations from the CASA for the 2009 control period, based on reductions made in the 2008 control period. |
| | | |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| Section 225.435
| Methodology for Calculating Annual Allocations |
| | | |
The Agency will calculate converted gross electrical (CGO) output, in MWh, for each CAIR NOx unit that has operated during at least one calendar year prior to the calendar year in which the Agency reports the allocations to USEPA as follows:
| a)
| For control periods 2009, 2010, and 2011, the owner or operator of the unit must submit in writing to the Agency, by June 1 September 15, 2007, a statement that either gross electrical output data or heat input data is to be used to calculate the unit’s converted gross electrical output. The data shall be used to calculate converted gross electrical output pursuant to either subsection (a)(1) or (a)(2) of this Section: |
| |
| 1)
| Gross electrical output: If the unit has four or five control periods of data, then the gross electrical output (GO) will be the average of the unit’s three highest gross electrical outputs from the 2001, 2002, 2003, 2004, or 2005 control periods. If the unit has three or fewer control periods of gross electrical output data, the gross electrical output will be the average of those control periods for which data is available. If the unit does not have gross electrical output for the 2004 and 2005 control periods, the gross electrical output will be the gross electrical output data from the 2005 control period. If a generator is served by two or more units, the gross electrical output of the generator will be attributed to each unit in proportion to the unit’s share of the total control period heat input of these units for the control period. The unit’s converted gross electrical output will be calculated as follows: |
| |
A) If the unit is coal-fired:
CGO (in MWh) = GO (in MWh)
´
MWh
´
1.0;
|
| |
B) If the unit is oil-fired:
CGO (in MWh) = GO (in MWh)
´
MWh
´
0.6; or
|
| |
C) If the unit is neither coal-fired nor oil-fired:
CGO (in MWh) = GO (in MWh)
´
MWh
´
0.4
|
| |
| 2)
| Heat input (HI): If the unit has four or five control periods of data, the average of the unit’s three highest heat inputs from the 2001, 2002, 2003, 2004 or 2005 control period, will be used. If the unit has three or fewer control periods of heat inputs data, the heat input will be the average of those control periods for which data is available from the 2003, 2004, or 2005 control period, the heat input will be the average of those years. If the unit does not have heat input from the 2004 and 2005 control periods, the heat input from the 2005 control period will be used. The unit’s converted gross electrical output will be calculated as follows: |
| |
A) If the unit is coal-fired:
| CGO (in MWh) = HI (in mmBtu)
´
0.0967;
|
| |
B) If the unit is oil-fired:
| CGO (in MWh) = HI (in mmBtu)
´
0.0580; or
|
| |
C) If the unit is neither coal-fired nor oil-fired:
| CGO (in MWh) = HI (in mmBtu)
´
0.0387.
|
| |
| b)
| For control periods 2012 and 2013, the owner or operator of the unit must submit in writing to the Agency, by June 1, 2008, a statement that either gross electrical output data or heat input data will be used to calculate the unit’s converted gross electrical output. The unit’s converted gross electrical output shall be calculated pursuant to either subsection (b)(1) or (b)(2) of this Section: |
| |
| 1)
| Gross electrical output: The average of the unit’s two most recent years of control period gross electrical output, if available; otherwise it will be the unit’s most recent control period’s gross electrical output. If a unit commences commercial operation in the 2007 control period and does not have gross electrical output for the 2006 control period, then the gross electrical output from 2007 will be used. If a generator is served by two or more units, the gross electrical output of the generator shall be attributed to each unit in proportion to the unit’s share of the total control period heat input of such units for the control period. The unit’s converted gross electrical output shall be calculated as follows: |
| |
A) If the unit is coal-fired:
CGO (in MWh) = GO (in MWh)
´
MWh
´
1.0;
B) If the unit is oil-fired:
CGO (in MWh) = GO (in MWh)
´
MWh
´
0.6;
|
| |
C) If the unit is neither coal-fired nor oil-fired:
CGO (in MWh) = GO (in MWh)
´
MWh
´
0.4.
|
| |
| 2)
| Heat input: The average of the unit’s two most recent years of control period heat inputs; otherwise the unit’s most recent control period’s heat input, e.g., for the 2012 control period, the average of the unit’s heat input from the 2006 and 2007 control periods. If the unit does not have heat input from the 2006 and 2007 control periods, the heat input from the 2007 control period shall be used. The unit’s converted gross electrical output shall be calculated as follows: |
| |
A) If the unit is coal-fired:
| CGO (in MWh) = HI (in mmBtu)
´
0.0967;
|
| |
B) If the unit is oil-fired:
| CGO (in MWh) = HI (in mmBtu)
´
0.0580; or
|
| |
C) If the unit is neither coal-fired nor oil-fired:
| CGO (in MWh) = HI (in mmBtu)
´
0.0387.
|
| |
| c)
| For control period 2014 and thereafter, the unit’s gross electrical output will be the average of the unit’s two most recent years of control period’s gross electrical output, if available; otherwise it will be the unit’s most recent control period’s gross electrical output. If a unit commences commercial operation in the most recent control period and does not have gross electrical output for two control periods, the gross electrical output from the most recent period, e.g., if the unit commences commercial operation in 2009 and does not have gross electrical output from 2008, gross electrical output from 2009 will be used. If a generator is served by two or more units, the gross electrical output of the generator will be attributed to each unit in proportion to the unit’s share of the total control period heat input of these units for the control period. The unit’s converted gross electrical output will be calculated as follows: |
| |
| 1)
| If the unit is coal-fired: |
CGO (in MWh) = GO (in MWh)
´
1.0;
| 2)
| If the unit is oil-fired: |
CGO (in MWh) = GO (in MWh)
´
0.6; or
| 3)
| If the unit is neither coal-fired nor oil-fired: |
CGO (in MWh) = GO (in MWh)
´
0.4.
| d)
| For a unit that is a combustion turbine or boiler and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy, the Agency will add the converted gross electrical output calculated for electricity pursuant to subsection (a), (b), or (c) of this Section to the converted useful thermal energy (CUTE) to determine the total converted gross electrical output for the unit (TCGO). The Agency will determine the converted useful thermal energy by using the average of the unit’s control period useful thermal energy for the prior two control periods, if available.; otherwise In the first year for which a unit is considered to be an existing unit rather than a new unit, the unit’s control period useful thermal output for the prior year will be used. The converted useful thermal energy will be determined using the following equations: |
| |
| 1)
| If the unit is coal-fired: |
CUTE (in MWh) = UTE (in mmBtu)
´
0.2930;
| 2)
| If the unit is oil-fired: |
CUTE (in MWh) = UTE (in mmBtu)
´
0.1758; or
| 3)
| If the unit is neither coal-fired nor oil-fired: |
CUTE (in MWh) = UTE (in mmBtu)
´
0.1172.
| e)
| The CAIR NOx unit’s converted gross electrical output and converted useful thermal energy in subsections (a)(1), (b)(1), (c), and (d) of this Section for each control period will be based on the best available data reported or available to the Agency for the CAIR NOx unit pursuant to the provisions of Section 225.450. |
| |
| f)
| The CAIR NOx unit’s heat input in subsections (a)(2) and (b)(2) of this Section for each control period will be determined in accordance with 40 CFR 75, as incorporated by reference in Section 225.140. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| |
| Section 225.440
| Annual Allocations |
| |
| a)
| For the 2009 control period, and each control period thereafter, the Agency will allocate, CAIR NOx allowances to all CAIR NOx units in Illinois for which the Agency has calculated the converted gross electrical output pursuant to Section 225.435(a), (b), or (c) or total converted gross electrical output pursuant to Section 225.435(d), as applicable,, a total amount of CAIR NOx allowances equal to tons of NOx emissions in the CAIR NOx Annual Trading budget available for allocation as determined in Section 225.425 and as adjusted to add allowances not allocated pursuant to subsection (b) of this Section 225.440 in the previous year’s allocation. |
| |
| b)
| The Agency will allocate CAIR NOx allowances to each CAIR NOx unit on a pro-rata basis using the unit’s converted gross electrical output pursuant to Section 225.435(a), (b), or (c) or total converted gross electrical output calculated pursuant to Section 225.435(d), as applicable, to the extent whole allowances may be allocated. The Agency will retain any additional allowances beyond this allocation of whole allowances for allocation pursuant to subsection (a) of this Section in the next control period. If there are insufficient allowances to allocate whole allowances pro rata, these unallocated allowances will be retained by the Agency and will be available for allocation in later control periods. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.445 New Unit Set-Aside (NUSA)
For the 2009 control period and each control period thereafter, the Agency will allocate CAIR NOx allowances from the NUSA to CAIR NOx units that commenced commercial operation on or after January 1, 2006, and do not yet have an allocation for the particular control period or any preceding control period pursuant to Section 225.440, in accordance with the following procedures:
| a)
| Beginning with the 2009 control period and each control period thereafter, the Agency will establish a separate NUSA for each control period. Each NUSA will be allocated CAIR NOx allowances equal to 5 five percent of the amount of tons of NOx emissions in the base CAIR NOx Annual Trading budget in Section 225.425. |
| |
| b)
| The CAIR designated representative of a new CAIR NOx unit may submit to the Agency a request, in a format specified by the Agency, to be allocated CAIR NOx allowances from the NUSA, starting with the first control period after the control period in which the new unit commences commercial operation and until the first fifth control period after the control period in which the unit commenced commercial operation for which the unit may use CAIR NOx allowances allocated to the unit pursuant to Section 225.440. The NUSA allowance allocation request may only be submitted after a new unit has operated during one control period, and no later than March 1 of the control period for which allowances from the NUSA are being requested. |
| |
| c)
| In a NUSA allowance allocation request pursuant to subsection (b) of this Section, the CAIR designated representative must provide in its request information for gross electrical output and useful thermal energy, if any, for the new CAIR NOx unit for that control period. |
| |
| d)
| The Agency will allocate allowances from the NUSA to a new CAIR NOx unit using the following procedures: |
| |
| 1)
| For each new CAIR NOx unit, the unit’s gross electrical output for the most recent control period will be used to calculate the unit’s gross electrical output. If a generator is served by two or more units, the gross electrical output of the generator will be attributed to each unit in proportion to the unit’s share of the total control period heat input of these units for the control period. The new unit’s converted gross electrical output will be calculated as follows: |
| |
| A)
| If the unit is coal-fired: |
| CGO (in MWh) = GO (in MWh)
´
1.0;
|
| | |
| B)
| If the unit is oil-fired: |
| CGO (in MWh) = GO (in MWh)
´
0.6; or
|
| |
| C)
| If the unit is neither coal-fired nor oil-fired: |
| CGO (in MWh) = GO (in MWh)
´
0.4.
|
| |
| 2)
| If the unit is a combustion turbine or boiler and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy, the Agency will add the converted gross electrical output calculated for electricity pursuant to subsection (d)(1) of this Section to the converted useful thermal energy to determine the total converted gross electrical output for the unit. The Agency will determine the converted useful thermal energy using the unit’s useful thermal energy for the most recent control period. The converted useful thermal energy will be determined using the following equations: |
| |
| A)
| If the unit is coal-fired: |
CUTE (in MWh) = UTE (in mmBtu)
´
0.2930;
| B)
| If the unit is oil-fired: |
CUTE (in MWh) = UTE (in mmBtu)
´
0.1758; or
| C)
| If the unit is neither coal-fired nor oil-fired: |
| CUTE (in MWh) = UTE (in mmBtu)
´
0.1172.
|
| |
| 3)
| The gross electrical output and useful thermal energy in subsections (d)(1) and (d)(2) of this Section for each control period will be based on the best available data reported or available to the Agency for the CAIR NOx unit pursuant to the provisions of Section 225.450. |
| |
| 4)
| The Agency will determine a unit’s unprorated allocation (UAy) using the unit’s converted gross electrical output plus the unit’s converted useful thermal energy, if any, calculated in subsections (d)(1) and (d)(2) of this Section, converted to approximate NOx tons (the unit’s unprorated allocation), as follows: |
| |
Where:
= unprorated allocation to a new
CAIR NOx unit.
| = converted gross electrical output or total
|
converted gross electrical output, as
applicable, for a new CAIR NOx unit.
| 5)
| The Agency will allocate CAIR NOx allowances from the NUSA to new CAIR NOx units as follows: |
| |
| A)
| If the NUSA for the control period for which CAIR NOx allowances are requested has a number of allowances greater than or equal to the total unprorated allocations for all new units requesting allowances, the Agency will allocate the number of allowances using the unprorated allocation determined for that unit pursuant to subsection (d)(4) of this Section, to the extent that whole allowances may be allocated. For any additional allowances beyond this allocation of whole allowances, the Agency will retain the additional allowances in the NUSA for allocation pursuant to Section 225.445 in later control periods. |
| |
| B)
| If the NUSA for the control period for which the allowances are requested has a number of CAIR NOx allowances less than the total unprorated allocation to all new CAIR NOx units requesting allocations, the Agency will allocate the available allowances for new CAIR NOx units on a pro-rata basis, using the unprorated allocation determined for that unit pursuant to subsection (d)(4) of this Section, to the extent that whole allowances may be allocated. For any additional allowances beyond this allocation of whole allowances, the Agency will retain the additional allowances in the NUSA for allocation pursuant to Section 225.445 in later control periods. If there are insufficient allowances to allocate whole allowances, the unallocated allowances will be retained by the Agency and will be available for allocation in a later control period. |
| |
C)
| If the gross electrical output or useful thermal energy reported to the Agency in pursuant to subsection (d) of this Section is later determined to be greater than the unit’s actual gross electrical output or useful thermal energy for the applicable control period, the Agency will reduce the unit’s allocation from the NUSA for the current control period to account for the excess allowances allocated in the prior control period or periods. |
| |
| e)
| The Agency will review each NUSA allowance allocation request pursuant to subsection (b) of this Section. The Agency will accept a NUSA allowance allocation request only if the request meets, or is adjusted by the Agency as necessary to meet, the requirements of this Section 225.445. |
| |
| f)
| By June 1 of the applicable control period, the Agency will notify each CAIR designated representative that submitted a NUSA allowance request of the amount of CAIR NOx allowances from the NUSA, if any, allocated for the control period to the new unit covered by the request. |
| |
| g)
| The Agency will allocate CAIR NOx allowances to new units from the NUSA no later than October 31 of the applicable control period. |
| |
| h)
| After a new CAIR NOx unit has operated in one control period, it becomes an existing unit for the purposes of calculating future allocations in Section 225.440 only, and the Agency will allocate CAIR NOx allowances for that unit, for the control period commencing four years in the future five control periods after the control period in which the unit commences commercial operation, pursuant to Section 225.440. For example, if a unit commences commercial operation in 2009, in 2010, the Agency will allocate to that unit allowances pursuant to Section 225.440 for the 2014 control period. The new CAIR NOx unit will continue to receive CAIR NOx allowances from the NUSA according to this Section until the unit is eligible to use the CAIR NOx allowances allocated to the unit pursuant to Section 225.440. |
| |
| i)
| If, after the completion of the procedures in subsection (c) of this Section for a control period, any unallocated CAIR NOx allowances remain in the NUSA for the control period, the Agency will, at a minimum, accrue those CAIR NOx allowances for future control period allocations to new CAIR NOx units. The Agency may from time to time elect to retire CAIR NOx allowances in the NUSA that are in excess of 15,881 for the purposes of continued progress toward attainment and maintenance of National Ambient Air Quality Standards pursuant to the CAA. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| |
| Section 225.450
| Monitoring, Recordkeeping and Reporting Requirements for Gross Electrical Output and Useful Thermal Energy |
| |
| a)
| By January 1, 2008, or by the date of commencing commercial operation, whichever is later, the owner or operator of the CAIR NOx unit must operate a system for accurately measuring gross electrical output that is consistent with the requirements of either 40 CFR 60 or 75; must measure gross electrical output in MW-hrs MWh using such a system; and must record the output of the measurement system at all times. If a generator is served by two or more units, the information to determine each unit’s heat input for that control period must also be recorded, so as to allow each unit’s share of the gross electrical output to be determined. If heat input data is used, the owner or operator must comply with the applicable provisions of 40 CFR 75, as incorporated by reference in Section 225.140. |
| |
| b)
| For a CAIR NOx unit that is a cogeneration unit, by January 1, 2008, or by the date the CAIR NOx unit commences to produce useful thermal energy, whichever is later, the owner or operator of a CAIR NOx the unit with cogeneration capabilities must install, calibrate, maintain, and operate meters for steam flow in lbs/hr, temperature in degrees Fahrenheit, and pressure in PSI, to measure and record the useful thermal energy that is produced, in mmBtu/hr, on a continuous basis. Owners and operators of a CAIR NOx unit that produces useful thermal energy but uses an energy transfer medium other than steam, e.g., hot water or glycol, must install, calibrate, maintain, and operate the necessary meters to measure and record the necessary data to express the useful thermal energy produced, in mmBtu/hr, on a continuous basis. If the CAIR NOx unit ceases to produce useful thermal energy, the owner or operator may cease operation of the meters, provided that operation of these meters must be resumed if the CAIR NOx unit resumes production of useful thermal energy. |
| |
| c)
| The owner or operator of a CAIR NOx unit must either report gross electrical output data to the Agency or comply with the applicable provisions for providing heat input data to USEPA as follows: |
| |
| 1)
| By June 1 September 15, 2007, the gross electrical output for control periods 2001, 2002, 2003, 2004 and 2005, if available, and the unit’s useful thermal energy data, if applicable. If a generator is served by two or more units, the documentation needed to determine each unit’s share of the heat input of such units for that control period must also be submitted. If heat input data is used, the owner or operator must comply with the applicable provisions of 40 CFR 75, as incorporated by reference in Section 225.140. |
| |
| 2)
| By June 1, 2008, the gross electrical output for control periods 2006 and 2007, if available, and the unit’s useful thermal energy data, if applicable. If a generator is served by two or more units, the documentation needed to determine each unit’s share of the heat input of such units for that control period must also be submitted. If heat input data is used, the owner or operator must comply with the applicable provisions of 40 CFR 75, as incorporated by reference in Section 225.140. |
| |
| d)
| Beginning with year 2008, the CAIR designated representative of the CAIR NOx unit must submit to the Agency quarterly, by no later than April 30, July 31, October 31, and January 31 of each year, information for the CAIR NOx unit’s gross electrical output, on a monthly basis for the prior quarter, and, if applicable, the unit’s useful thermal energy for each month. |
| |
| e)
| The owner or operator of a CAIR NOx unit must maintain on-site the monitoring plan detailing the monitoring system, maintenance of the monitoring system, including quality assurance activities pursuant to the requirements of 40 CFR 60 and or 75, as applicable, including the applicable appropriate provisions for the measurement of gross electrical output for the CAIR NOx Trading Program and, if applicable, for new units. The monitoring plan must include, but is not limited to: |
| |
| 1)
| A description of the system to be used for the measurement of gross electrical output pursuant to Section 225.450(a), including a list of any data logging devices, solid-state kW meters, rotating kW meters, electromechanical kW meters, current transformers, transducers, potential transformers, pressure taps, flow venturi, orifice plates, flow nozzles, vortex meters, turbine meters, pressure transmitters, differential pressure transmitters, temperature transmitters, thermocouples, resistance temperature detectors, and any equipment or methods used to accurately measure gross electrical output. |
| |
| 2)
| A certification statement by the CAIR designated representative that all components of the gross electrical output system have been tested to be accurate within three percent and that the gross electrical output system is accurate to within ten percent. |
| |
| f)
| The owner or operator of a CAIR NOx unit must retain records for at least 5 five years from the date the record is created or the data is collected in under subsections (a) and (b) of this Section, and the reports are submitted to the Agency and USEPA in accordance with subsections (c) and (d) of this Section. The owner or operator of a CAIR NOx unit must retain the monitoring plan required in subsection (e) of this Section for at least five years from the date that it is replaced by a new or revised monitoring plan. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.455 Clean Air Set-Aside (CASA)
| a)
| A project sponsor may apply for allowances from the CASA for sponsoring an energy efficiency and conservation, renewable energy, or clean technology project as set forth in Section 225.460 by submitting the application required by Section 225.470. |
| |
| b)
| Notwithstanding subsection (a) of this Section, a project sponsor with a CAIR NOx source that is out of compliance with this Subpart for a given control period may not apply for allowances from the CASA for that control period. If a source receives CAIR NOx allowances from the CASA and then is subsequently found to have been out of compliance with this Subpart for the applicable control period or periods, the project sponsor must restore the CAIR NOx allowances that it received pursuant to its CASA request or an equivalent number of CAIR NOx allowances to the CASA within six months of after receipt of an Agency notice that NOx allowances must be restored. These allowances will be assigned to the fund from which they were distributed. |
| |
| c)
| CAIR NOx allowances from the CASA will be allocated in accordance with the procedures in Section 225.475. |
| |
| d)
| The project sponsor may submit an application that aggregates two or more projects under a CASA project category that would individually result in less than one allowance, but that equal at a minimum one whole allowance when aggregated. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.460 Energy Efficiency and Conservation, Renewable Energy, and Clean
Technology Projects
| a)
| Energy efficiency and conservation project means any of the following projects implemented and located in Illinois: |
| |
| 1)
| Demand side management projects that reduce overall power demand by using less energy include: |
| |
| A)
| Smart building management software that more efficiently regulates power flows. |
| |
| B)
| The use of or replacement to high efficiency motors, pumps, compressors, or steam systems. |
| |
| C)
| Lighting retrofits. |
| |
| 2)
| Energy efficient new building construction projects include: |
| |
| A)
| ENERGY STAR-qualified new home projects. |
| |
| B)
| Measures to reduce or conserve energy consumption beyond the requirements of the Illinois Energy Conservation Code for Commercial Buildings [20 ILCS 687/6-3]. |
| |
| C)
| New residential construction projects that qualify for Energy Efficient Tax Incentives pursuant to the Energy Policy Act of 2005, (42 USC 15801 (2005)). |
| |
| 3)
| Supply-side energy efficiency projects include projects implemented to improve the efficiency in electricity generation by coal-fired power plants, and the efficiency of electrical transmission and distribution systems. |
| |
| 4)
| Highly efficient power generation projects, such as, but not limited to, combined cycle projects, combined heat and power, and microturbines. To be considered a highly efficient power generation project pursuant to this subsection (a)(4), a project must meet the following applicable thresholds and criteria listed below: |
| |
| A)
| For combined heat and power projects generating both electricity and useful thermal energy for space, water, or industrial process heat, a rated-energy efficiency of at least 60 percent and is not a CAIR NOx unit. |
| |
| B)
| For combined cycle projects rated at greater than 0.50 MW, a rated-energy efficiency of at least 50 percent. |
| |
| C)
| For microturbine projects rated at or below 0.50 MW and all other projects, a rated-energy efficiency of at least 40 percent. |
| |
| b)
| Renewable energy project means any of the following projects implemented and located in Illinois: |
| |
| 1)
| Zero-emission electric generating projects, including wind, solar (thermal or photovoltaic), and hydropower projects. Eligible hydropower plants are restricted to new generators, that are not replacements of existing generators, that commenced operation on or after January 1, 2006, and that do not involve the significant expansion of an existing dam or the construction of a new dam. |
| |
| 2)
| Renewable energy units are those units that generate electricity using more than 50 percent of the heat input, on an annual basis, from dedicated crops grown for energy production or the capture systems for methane gas from landfills, water treatment plants or sewage treatment plants, and organic waste biomass, and other similar sources of non-fossil fuel energy. Renewable energy projects do not include energy from incineration by burning or heating of waste wood, tires, garbage, general household waste, institutional lunchroom waste, or office waste, landscape waste, or construction or demolition debris. |
| |
| c)
| Clean technology project for reducing emissions from producing electricity and useful thermal energy means any of the following projects implemented and located in Illinois: |
| |
| 1)
| Air pollution control equipment upgrades at existing coal-fired EGUs, as follows: installation of flue gas desulfurization (FGD) for control of SO2 emissions; installation of a baghouse for control of particulate matter emissions; and installation of selective catalytic reduction (SCR), selective non-catalytic reduction (SNCR), or other add-on control devices for control of NOx emissions. For this purpose, a unit will be considered “existing” after it has been in commercial operation for at least eight years. Air pollution control upgrade projects do not include the addition of low NOx burners, overfired air techniques or gas reburning techniques for control of NOx emissions; projects involving flue gas conditioning techniques or upgrades, or replacement of electrostatic precipitators; or addition of an activated carbon injection or other sorbent injection system for control of mercury. For this purpose, a unit will be considered “existing” after it has been in commercial operation for at least eight years. |
| |
| 2)
| Clean coal technologies projects include: |
| |
| A)
| Integrated gasification combined cycle (IGCC) plants. |
| |
| B)
| Fluidized bed coal combustion that commenced operation prior to December 31, 2006. |
| |
| d)
| In addition to those projects excluded in subsections (a) through (c) of this Section, the following projects are also not energy efficiency and conservation, renewable energy, or clean technology projects: |
| |
1) Nuclear power projects.
| 2)
| Projects required to meet emission standards or technology requirements under State or federal law or regulation, except that allowances may be allocated for: |
| |
| A)
| The installation of a baghouse. |
| | |
| B)
| Projects undertaken pursuant to Section 225.233 or Subpart F. |
| | |
| 3)
| Projects used to meet the requirements of a court order or consent decree, except that allowances may be allocated for: |
| |
| A)
| Emission rates or limits achieved that are lower than what is required to meet the emission rates or limits for SO2 or NOx, or for installing a baghouse as provided for in a court order or consent decree entered into before May 30, 2006. |
| |
| B)
| Projects used to meet the requirements of a court order or consent decree entered into on or after May 30, 2006, if the court order or consent decree does not specifically preclude such allocations. |
| |
4) A Supplemental Environmental Project (SEP).
| e)
| Applications for projects implemented and located in Illinois that are not specifically listed in subsections (a) through (c) of this Section, and that are not specifically excluded by definition in subsections (a) through (c) of this Section or by specific exclusion in subsection (d) of this Section, may be submitted to the Agency. The application must designate which category or categories from those listed in subsections (a)(1) through (c)(2)(AB) of this Section best fit the proposed project and the applicable formula pursuant to Section 225.465(b) to calculate the number of allowances that it is requesting. The Agency will determine whether the application is approvable based on a sufficient demonstration by the project sponsor that the project is a new type of energy efficiency, renewable energy, or clean technology project, similar in its effects as the projects specifically listed in subsections (a) through (c)(2)(AB) of this Section. |
| |
| f)
| Early adopter projects include projects that meet the criteria for any energy efficiency and conservation, renewable energy, or clean technology projects listed in subsections (a), (b), (c), and (e) of this Section and commence construction between July 1, 2006 and December 31, 2012. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.465 Clean Air Set-Aside (CASA) Allowances
| a)
| The CAIR NOx allowances for the CASA for each control period will be assigned to the following categories of projects: |
|
|
Phase I Phase II
(2009-2014) (2015 and thereafter)
1) Energy Efficiency and Conservation/ 9149 7625
Renewable Energy
2) Air Pollution Control Equipment 3811 3175
Upgrades
3) Clean Coal Technology 4573 3810
4) Early Adopters 1525 1271
| b)
| The following formulas must be used to determine the number of CASA allowances that may be allocated to a project per control period: |
| | | |
1) For an energy efficiency and conservation project pursuant to Section 225.460(a)(1) through (a)(4)(A), the number of allowances must be calculated using the number of megawatt hours of electricity that was not consumed during a control period and the following formula:
A = (MWhc)
´
(1.5 lb/MWh) / 2000 lb
Where:
A = The number of allowances for a particular project.
MWhc = The number of megawatt hours of electricity
conserved or generated during a control period by a
project.
| 2)
| For a zero emission electric generating project pursuant to Section 225.460(b)(1), the number of allowances must be calculated using the number of megawatt hours of electricity generated during a control period and the following formula: |
| | | |
A = (MWhg)
´
(2.0 lb/MWh) / 2000 lb
Where:
A = The number of allowances for a particular project
MWhg = The number of megawatt hours of electricity
generated during a control period by a project.
| 3)
| For a renewable energy emission unit pursuant to Section 225.460(b)(2), the number of allowances must be calculated using the number of MWhs of electricity generated during a control period and the following formula: |
| | | |
A = (MWhg)
´
(0.5 lb/MWh) / 2000 lb
Where:
A = The number of allowances for a particular project.
MWhg = The number of MW hours of electricity generated
| | during a control period by a project.
|
| | |
| 4)
| For an air pollution control equipment upgrade project pursuant to Section 225.460(c)(1), the number of allowances will be calculated as follows: |
| | | |
| A)
| For NOx or SO2 control projects, by determining the difference in emitted NOx or SO2 per control period using the emission rate before and after replacement or improvement, and the following formula: | |
| | |
A= (MWhg)
´
K
´
(ER
B
lb/MWh - ER
A
lb/MWh) / 2000 lb
Where:
A = The number of allowances for a particular
project.
MWhg = The number of megawatt hours of electricity
generated during a control period by a
project.
| K
| = The pollutant factor: for NOx, K= 0.1; and |
for SO2, K = 0.05.
| ER
B
| = Average NOx or SO2 emission rate based on
|
CEMS data from the most recent two
control periods prior to the replacement or
improvement of the control equipment in
lb/MWh, unless subject to a court order
or consent decree. For units subject to a
court order or consent decree entered into before May 30, 2006, ERB is limited to emission rates that are lower than the emission rate required in the consent decree or court order. For a court order or consent decree entered into after May 30, 2006, ERB is limited to the lesser of the emission rate specified in the court order or consent decree or the actual average emission rate during the control period. If such limit is not expressed in lb/MWh, the limit must be converted into lb/MWh using a heat rate of 10 mmBtu/1 MW.
ER
A
= Annual NOx or SO2 average emission rate
for the applicable control period data based
on CEMS data in lb/MWh.
| B)
| For a baghouse project: |
| | |
A = (MWhg)
´
(Q lb/MWh) / 2000 lb
Where:
A = The number of allowances for a
particular project.
MWhg = The number of MWh of
electricity generated during a control period
or the portion of a control period that the
units were controlled by the baghouse.
Q =
1) If a baghouse was not installed pursuant to a consent decree or court order, Q shall equal 0.2.
2) If a baghouse was installed pursuant to a consent decree or court order which that assigns a Q factor, then Q equals the factor established in the consent decree or court order but must not exceed a factor of 0.2.
3) If a baghouse was installed pursuant to a consent decree or court order which that does not assign a Q factor then Q shall equal:
Q= 0.25 – (P x ERq)
Where:
P = If the most recent control period’s average PM emission rate was based on PM CEMS data, P equals 1.0; otherwise P = 1.1.
ERq = The magnitude of most recent control period’s average PM emission rate in lb/MWh exiting the baghouse, subject to the following limits:
If P = 1.0, then 1/10 ≤ ERq ≤ 2/10
If P = 1.1, then 1/11 ≤ ERq ≤ 2/11
If the ERq is less than the lower limit, the lower limit shall be used.
If ERq is greater than the upper limit, the upper limit shall be used.
If ERq is not expressed in lb/MWh, the number must be converted to lb/MWh using a heat ratio rateof 10 mmBtu/1 MW.
| 5)
| For highly efficient power generation and clean coal technology projects: |
| | | |
| A)
| For projects other than fluidized coal combustion pursuant to Section 225.460(a)(4)(B), (a)(4)(C), and (c)(2), the number of allowances must be calculated using the number of megawatt hours MWh of electricity the project generates during a control period and the following formula: |
| | |
A = (MWhg)
´
(1.0 lb/MWh – ER lb/MWh) / 2000 lb
Where:
A = The number of allowances for a particular
project.
MWhg = The number of megawatt hours of electricity
generated during a control period by a
project.
ER = Annual average NOx emission rate based on
CEMS data in 1b/MWh.
B) For fluidized bed coal combustion projects pursuant to Section 225.460 (c)(2), the number of allowances shall be calculated using the number of gross MWh of electricity the project generates during a control period and the following formula:
A = (MWhg) x (1.4 lb/MWh – ER lb/MWh) / 2000 lb
| Where:
| |
| A
| = The number of allowances for a particular project. |
| MWhg
| = The number of gross MWh of electricity generated during a control period by a project. |
| ER = Annual NOx emission rate for the control
|
| Period based on CEMS data in lb/MWh
|
| |
| 6)
| For a CASA project that commences construction before December 31, 2012, in addition to the allowances allocated pursuant to subsections (b)(1) through (b)(5) of this Section, a project sponsor may also request additional allowances pursuant to the early adopter project category pursuant to Section 225.460(e) based on the following formula: |
| | | | |
Where:
A = The number of allowances for a particular project as
determined in subsections (b)(1) through (b)(5) of
this Section.
Ai = The number of allowances as determined in
subsection (b)(1), (b)(2), (b)(3), (b)(4) or (b)(5) of
this Section for a given project.
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.470 Clean Air Set-Aside (CASA) Applications
| a)
| A project sponsor may request allowances if the project commenced construction on or after the dates listed below in this subsection. The project sponsor may request and be allocated allowances from more than one CASA category for a project, if applicable. |
| |
| 1)
| Demand side management, energy efficient new construction, and supply side energy efficiency and conservation projects that commenced construction on or after January 1, 2003; |
| |
| 2)
| Fluidized bed coal combustion projects, highly efficient power generation operations projects, or renewable energy emission units, which that commenced construction on or after January 1, 2001; and |
| |
| 3)
| All other projects on or after July 1, 2006. |
|
| |
| b)
| Beginning with the 2009 control period and each control period thereafter, a project sponsor may request allowances from the CASA. The application must be submitted to the Agency by May 1 of the control period for which the allowances are being requested. |
| |
| c)
| The allocation will be based on the electricity conserved or generated in the control period preceding the calendar year in which the application is submitted. To apply for a CAIR NOx allocation from the CASA, project sponsors must provide the Agency with the following information: |
| |
| 1)
| Identification of the project sponsor, including name, address, type of organization, certification that the project sponsor has met the definition of “project sponsor” as set forth in Section 225.130,and names of the principals or corporate officials. |
| |
| 2)
| The number of the CAIR NOx general or compliance account for the project and the name of the associated CAIR account representative. | |
| | |
| 3)
| A description of the project or projects, location, the role of the project sponsor in the projects, and a general explanation of how the amount of energy conserved or generated was measured, verified, and calculated, and the number of allowances requested with the supporting calculations. The number of allowances requested will be calculated using the applicable formula from Section 225.470(b). |
| | |
| 4)
| Detailed information to support the request for allowances, including the following types of documentation for the measurement and verification of the NOx emissions reductions, electricity generated, or electricity conserved using established measurement verification procedures, as applicable. The measurement and verification required will depend on the type of project proposed. |
| |
| A)
| As applicable, documentation of the project’s base and control period conditions and resultant base and control period energy data, using the procedures and methods included in M&V Guidelines: Measurement and Verification for Federal Energy Projects, incorporated by reference in Section 225.140, or other method approved by the Agency. Examples include: |
| | |
| i)
| Energy consumption and demand profiles; |
| | |
| ii)
| Occupancy type; | |
| | |
| iii)
| Density and periods; | |
| | |
| iv)
| Space conditions or plant throughput for each operating period and season. (for example, in a building this would include the light level and color, space temperature, humidity and ventilation); |
| | |
| v)
| Equipment inventory, nameplate data, location, and condition; and |
| | |
vi) Equipment operating practices (schedules and set points, actual temperatures/pressures);
| B)
| Emissions data, including, if applicable, CEMS data; |
| |
| C)
| Information for rated-energy efficiency, including supporting documentation and calculations; and |
| |
| D)
| Electricity, in MWh generated or conserved for the applicable control period. |
| |
| 5)
| Notwithstanding the requirements of subsection (c)(4) of this Section, applications for fewer than five allowances may propose other reliable and applicable methods of quantification acceptable to the Agency. |
| |
| 6)
| Any additional information requested by the Agency to determine the correctness of the requested number of allowances, including site information, project specifications, supporting calculations, operating procedures, and maintenance procedures. |
| |
| 7)
| The following certification by the responsible official for the project sponsor and the applicable CAIR account representative for the project: |
| |
“I am authorized to make this submission on behalf of the project sponsor and the holder of the CAIR NOx general account or compliance account for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this application and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information.”
| d)
| A project sponsor may request allowances from the CASA for each project for a total number of control periods not to exceed the number of control periods listed below in this subsection. After a project has been allocated allowances from the CASA, subsequent requests for the project from the project sponsor must include the information required by subsections (c)(1), (c)(2), (c)(3) and (c)(7) of this Section, a description of any changes, or further improvements made to the project, and information specified in subsections (c)(5) and (c)(6) as specifically requested by the Agency. |
| |
| 1)
| For energy efficiency and conservation projects (except for efficient operation and renewable energy projects), for a total of eight control periods. |
| |
| 2)
| For early adopter projects, for a total of ten control periods. |
| |
| 3)
| For air pollution control equipment upgrades, for a total of 15 control periods. |
| |
| 4)
| For renewable energy projects, clean coal technology, and highly efficient power generation projects, for each year that the project is in operation. |
| |
| e)
| A project sponsor must keep copies of all CASA applications and the documentation used to support the application for at least five years. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.475 Agency Action on Clean Air Set-Aside (CASA) Applications
| a)
| By September 1, 2009 and each September 1 thereafter, the Agency will determine the total number of allowances that are approvable for allocation to project sponsors based upon the applications submitted pursuant to Section 225.470. |
| |
| 1)
| The Agency will determine the number of CAIR NOx allowances that are approvable based on the formulas and the criteria for these projects. The Agency will notify a project sponsor within 90 days after receipt of an application if the project is not approvable, the number of allowances requested is not approvable, or additional information is needed by the Agency to complete its review of the application. |
| |
| 2)
| If the total number of CAIR NOx allowances requested for approved projects is less than or equal to the number of CAIR NOx allowances in the CASA project category, the number of allowances that are approved will be allocated to each CAIR NOx compliance or general account. |
| |
| 3)
| If more CAIR NOx allowances are requested than the number of CAIR NOx allowances in a given CASA project category, allowances will be allocated on a pro-rata basis based on the number of allowances available, subject to further adjustment as provided for by subsection (b) of this Section. CAIR NOx allowances will be allocated, transferred, or used as whole allowances. The number of whole allowances will be determined by rounding down for decimals less than 0.5 and rounding up for decimals of 0.5 or greater. |
| |
| b)
| For control periods 2011 and thereafter: |
| |
| 1)
| If there are, after the completion of the procedures in subsection (a) of this Section for a control period, any CAIR NOx allowances not allocated to a CASA project for the control period the remaining allowances will accrue in each CASA project category up to twice the number of allowances that are assigned to the project category each control period as set forth in Section 225.465. |
| |
| 2)
| If any allowances remain after allocations pursuant to subsection (b)(1) of this Section, the Agency will allocate these allowances pro rata to projects that received fewer allowances than requested, based on the number of allowances not allocated but approved by the Agency for the project under CASA. No project may be allocated more allowances than approved by the Agency for the applicable control period. |
| |
| 3)
| If any allowances remain after the allocation of allowances pursuant to subsection (b)(2) of this Section, the Agency will then distribute pro-rata the remaining allowances to project categories that have fewer than twice the number of allowances assigned to that project category. The pro-rata distribution will be based on the difference between two times the project category and the number of allowances that remain in the project category. |
| | |
| 4)
| If allowances still remain undistributed after the allocations and distributions in the above subsections (b)(1) through (b)(3) are completed, the Agency may elect to retire the CAIR NOx allowances that have not been distributed to any CASA category to continue progress toward attainment or maintenance of the National Ambient Air Quality Standards pursuant to the CAA. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| Section 225.480
| Compliance Supplement Pool |
| |
In addition to the CAIR NOx allowances allocated pursuant to Section 225.425, the USEPA has provided allowed allocation of an additional 11,299 CAIR NOx allowances from the federal in Illinois as a compliance supplement pool to Illinois for the control period in 2009. On January 1, 2009, the Agency will retire all 11,299 NOx allowances However, for the purposes of public health and air quality improvements, none of these allowances will be allocated.
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
SUBPART E: CAIR NOx OZONE SEASON TRADING PROGRAM
|
| |
The purpose of this Subpart E is to control the seasonal emissions of nitrogen oxides (NOx) from EGUs by determining allocations and implementing the CAIR NOx Ozone Season Trading Program.
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| |
| Section 225.505
|
| Applicability |
| |
| a)
| Except as provided in subsections (b)(1), (b)(3), and (b)(4) of this Section: |
| |
| 1)
| The following units are CAIR NOx Ozone Season units, and any source that includes one or more such units is a CAIR NOx source subject to the requirements of this Subpart E: any stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine serving at any time, since the later of November 15, 1990 or the start-up of the unit’s combustion chamber, a generator with nameplate capacity of more than 25 MWe producing electricity for sale. |
| |
| 2)
| If a stationary boiler or stationary combustion turbine that, pursuant to subsection (a)(1) of this Section, is not a CAIR NOx Ozone Season unit begins to combust fossil fuel or to serve a generator with nameplate capacity of more than 25 MWe producing electricity for sale, the unit will become a CAIR NOx Ozone Season unit as provided in subsection (a)(1) of this Section on the first date on which it both combusts fossil fuel and serves such generator. |
| |
| b)
| The units that meet the requirements set forth in subsections (b)(1), (b)(3), and (b)(4) of this Section will not be CAIR NOx Ozone Season units and units that meet the requirements of subsections (b)(2) and (b)(5) of this Section are CAIR NOx Ozone Season units: |
| |
| 1)
| Any unit that is would otherwise be classified as a CAIR NOx Ozone Season unit pursuant to subsection (a)(1) or (a)(2) of this Section and: |
| |
| A)
| Qualifies as a cogeneration unit during the 12-month period starting on the date the unit first produces electricity and continuing continues to qualify as a cogeneration unit; and |
| |
| B)
| Does not serve at any time, since the later of November 15, 1990 or the start-up of the unit’s combustion chamber, a generator with nameplate capacity of more than 25 MWe supplying any calendar year more than one-third of the of the unit’s potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution for sale. |
| |
| 2)
| If a unit qualifies as a cogeneration unit during the 12-month period starting on the date the unit first produces electricity and meets the requirements of subsection (b)(1) of this Section for at least one calendar year, but subsequently no longer meets all such requirements, the unit shall become a CAIR NOx Ozone Season unit starting on the earlier of January 1 after the first calendar year during which the unit no longer qualifies as a cogeneration unit or January 1 after the first calendar year during which the unit no longer meets the requirements of subsection (b)(1)(B) of this Section. |
| |
| 3)
| Any unit that is would otherwise be classified as a CAIR NOx Ozone Season unit pursuant to subsection (a)(1) or (a)(2) of this Section commencing operation before January 1, 1985 and: |
| |
| A)
| Qualifies as a solid waste incineration unit; and |
| |
| B)
| With Has an average annual fuel consumption of non-fossil fuel for 1985-1987 exceeding 80 percent (on a Btu basis) and an average annual fuel consumption of non-fossil fuel for any three consecutive calendar years after 1990 exceeding 80 percent (on a Btu basis). |
| |
| 4)
| Any unit that is would otherwise be classified as a CAIR NOx Ozone Season unit under subsection (a)(1) or (a)(2) of this Section commencing operation on or after January 1, 1985 and: |
| |
| A)
| Qualifies as a solid waste incineration unit; and |
| |
| B)
| With Has an average annual fuel consumption of non-fossil fuel the first three years of operation exceeding 80 percent (on a Btu basis) and an average annual fuel consumption of non-fossil fuel for any three consecutive calendar years after 1990 exceeding 80 percent (on a Btu basis). |
| |
| 5)
| If a unit qualifies as a solid waste incineration unit and meets the requirements of subsection (b)(3) or (b)(4) of this Section for at least three consecutive years, but subsequently no longer meets all such requirements, the unit shall become a CAIR NOx Ozone Season unit starting on the earlier of January 1 after the first three consecutive calendar years after 1990 for which the unit has an average annual fuel consumption of fuel of 20 percent or more. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| |
| Section 225.510
| Compliance Requirements |
| |
| a)
|
The owner or operator designated representativeof a CAIR NOx Ozone Season unit must comply with the requirements of the CAIR NOx Ozone Season Trading Program for Illinois as set forth in this Subpart E and 40 CFR 96, subpart AAAA (CAIR NOx Ozone Season Trading Program General Provisions) (excluding 40 CFR 96.304, 96.305(b)(2), and 96.306); 40 CFR 96, subpart BBBB (CAIR Designated Representative for CAIR NOx Ozone Season Sources); 40 CFR 96, subpart FFFF (CAIR NOx Ozone Season Allowance Tracking System); 40 CFR 96, subpart GGGG (CAIR NOx Ozone Season Allowance Transfers); and 40 CFR 96, subpart HHHH (Monitoring and Reporting); as incorporated by reference in Section 225.140. |
| |
| 1)
|
The owner or operator designated representative of each source with one or more CAIR NOx Ozone Season units at the source must apply for a permit issued by the Agency with federally enforceable conditions covering the CAIR NOx Ozone Season Trading Program (“CAIR permit”) that complies with the requirements of Section 225.520 (Permit Requirements). |
| |
| 2)
|
| The owner or operator of each CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit at the source must operate the CAIR NOx Ozone Season unit in compliance with its CAIR permit. |
| |
| c)
| Monitoring requirements: |
| |
| 1)
|
| The owner or operator of each CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit at the source must comply with the monitoring, reporting and recordkeeping requirements of 40 CFR 96, subpart HHHH; 40 CFR 75; and Section 225.550. The CAIR designated representative of each CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit at the source must comply with those sections of the monitoring, reporting and recordkeeping requirements of 40 CFR 96, subpart HHHH, applicable to a CAIR designated representative. |
| |
| 2)
|
| The compliance of each CAIR NOx Ozone Season source with the CAIR NOx Ozone Season emissions limitation pursuant to subsection (d) of this Section will be determined by the emissions measurements recorded and reported in accordance with 40 CFR 96, subpart HHHH. |
| |
| d)
| Emission requirements: |
| |
| 1)
| By the allowance transfer deadline, midnight of November 30, 2009, and by midnight of November 30 of each subsequent year if November 30 is a business day, the owner or operator of each CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit at the source must hold allowances available for compliance deductions pursuant to 40 CFR 96.354(a) in the CAIR NOx Ozone Season source’s compliance account. If November 30 is not a business day, tThe allowance transfer deadline means by midnight of November 30 (if it is a business day) or midnight of the first business day thereafter. The number of allowances held may not be less than the tons of NOx emissions for the control period from all CAIR NOx Ozone Season units at the CAIR NOx Ozone Season source, as determined in accordance with 40 CFR 96, subpart HHHH. |
| |
| 2)
|
Each ton of excess emissions of a CAIR NOx Ozone Season source for each day in a control period, starting in 2009 emitted in excess of the number of CAIR NOx Ozone Season allowances held by the owner or operator for each CAIR NOx Ozone Season unit in its CAIR NOx Ozone Season compliance account for each day of the applicable control period will constitute a separate violation of this Subpart E, the Act, and the CAA. |
| |
| 3)
|
Each CAIR NOx Ozone Season unit will be subject to the monitoring requirements of subsection (cd)(1) of this Section for the control period starting on the later of May 1, 2009 or the deadline for meeting the unit’s monitoring certification requirements pursuant to 40 CFR 96.370(b)(1), (b)(2) or (b)(3) and for each control period thereafter. |
| |
| 4)
|
| CAIR NOx Ozone Season allowances must be held in, deducted from, or transferred into or among allowance accounts in accordance with this Subpart and 40 CFR 96, subparts FFFF and GGGG. |
| |
| 5)
|
| In order to comply with the requirements of subsection (d)(1) of this Section, a CAIR NOx Ozone Season allowance may not be deducted for compliance according to subsection (d)(1) of this Section, for a control period in a calendar year before the year for which the CAIR NOx Ozone Season allowance is allocated. |
| |
| 6)
|
A CAIR NOx Ozone Season allowance allocated by the Agency or USEPA pursuant to the CAIR NOx Ozone Season Trading Program is a limited authorization to emit one ton of NOx in accordance with the CAIR NOx Ozone Season Trading Program. No provision of the CAIR NOx Ozone Season Trading Program, the CAIR permit application, the CAIR permit, or a retired unit exemption pursuant to 40 CFR 96.305, and no provision of law, will be construed to limit the authority of the United States or the State to terminate or limit this authorization. |
| |
| 7)
|
A CAIR NOx Ozone Season allowance allocated by the Agency or USEPA pursuant to the CAIR NOx Ozone Season Trading Program does not constitute a property right. |
| |
| 8)
| Upon recordation by USEPA pursuant to 40 CFR 96, subpart FFFF or subpart GGGG, every allocation, transfer, or deduction of a CAIR NOx Ozone Season an allowance to or from a CAIR NOx Ozone Season source compliance account is deemed to amend automatically, and become a part of, any CAIR NOx Ozone Season permit of the CAIR NOx Ozone Season source. This automatic amendment of the CAIR permit will be deemed an operation of law and will not require any further review. |
| |
| e)
| Recordkeeping and reporting requirements: |
| |
| 1)
| Unless otherwise provided, the owner or operator of the CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit at the source must keep on site at the source each of the documents listed in subsections (e)(1)(A) through (e)(1)(E) of this Section for a period of five years from the date the document is created. This period may be extended for cause, at any time prior to the end of five years, in writing by the Agency or USEPA. |
| |
| A)
| The certificate of representation for the CAIR designated representative for the source and each CAIR NOx Ozone Season unit at the source, all documents that demonstrate the truth of the statements in the certificate of representation, provided that the certificate and documents must be retained on site at the source beyond such five-year period until the documents are superseded because of the submission of a new certificate of representation, pursuant to 40 CFR 96.313, changing the CAIR designated representative. |
| |
| B)
| All emissions monitoring information, in accordance with 40 CFR 96, subpart HHHH. |
| |
| C)
| Copies of all reports, compliance certifications, and other submissions and all records made or required pursuant to the CAIR NOx Ozone Season Trading Program or documents necessary to demonstrate compliance with the requirements of the CAIR NOx Ozone Season Trading Program or with the requirements of this Subpart E. |
| |
| D)
| Copies of all documents used to complete a CAIR NOx Ozone Season permit application and any other submission or documents used to demonstrate compliance pursuant to the CAIR NOx Ozone Season Trading Program. |
| |
| E)
| Copies of all records and logs for gross electrical output and useful thermal energy required by Section 225.550. |
| |
| 2)
| The CAIR designated representative of a CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit at the source must submit to the Agency and USEPA the reports and compliance certifications required pursuant to the CAIR NOx Ozone Season Trading Program, including those pursuant to 40 CFR 96, subpart HHHH and Section 225.550. |
| |
| 1)
| No revision of a permit for a CAIR NOx Ozone Season unit may excuse any violation of the requirements of this Subpart E or the requirements of the CAIR NOx Ozone Season Trading Program. |
| |
| 2)
| Each CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit must meet the requirements of the CAIR NOx Ozone Season Trading Program. |
| |
| 3)
| Any provision of the CAIR NOx Ozone Season Trading Program that applies to a CAIR NOx Ozone Season source (including any provision applicable to the CAIR designated representative of a CAIR NOx Ozone Season source) will also apply to the owner and operator of the CAIR NOx Ozone Season source and to the owner and operator of each CAIR NOx Ozone Season unit at the source. |
| |
| 4)
| Any provision of the CAIR NOx Ozone Season Trading Program that applies to a CAIR NOx Ozone Season unit (including any provision applicable to the CAIR designated representative of a CAIR NOx Ozone Season unit) will also apply to the owner and operator of the CAIR NOx Ozone Season unit. |
| |
| 5)
| The CAIR designated representative of a CAIR NOx Ozone Season unit that has excess emissions in any control period must surrender the allowances as required for deduction pursuant to 40 CFR 96.354(d)(1). |
| |
| 6)
| The owner or operator of a CAIR NOx Ozone Season unit that has excess NOx emissions in any control period must pay any fine, penalty, or assessment or comply with any other remedy imposed pursuant to the Act and 40 CFR 96.354(d)(2). |
| |
| g)
| Effect on other authorities: No provision of the CAIR NOx Ozone Season Trading Program, a CAIR permit application, a CAIR permit, or a retired unit exemption pursuant to 40 CFR 96.305 will be construed as exempting or excluding the owner and operator and, to the extent applicable, the CAIR designated representative of a CAIR NOx Ozone Season source or a CAIR NOx Ozone Season unit from compliance with any other regulation promulgated pursuant to the CAA, the Act, any State regulation or permit, or a federally enforceable permit. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.515 Appeal Procedures
The appeal procedures for decisions of USEPA pursuant to the CAIR NOx Ozone Season Trading Program are set forth in 40 CFR 78, as incorporated by reference in Section 225.140.
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| Section 225.520
| Permit Requirements |
| |
| 1)
| The owner or operator of each source with a CAIR NOx Ozone Season unit is required to submit: |
| |
| A)
| A complete permit application addressing all applicable CAIR NOx Ozone Season Trading Program requirements for a permit meeting the requirements of this Section 225.520, applicable to each CAIR NOx Ozone Season unit at the source. Each CAIR permit must contain elements required for a complete CAIR permit application pursuant to subsection (b)(2) of this Section. |
| |
| B)
| Any supplemental information that the Agency determines necessary in order to review a CAIR permit application and issue any CAIR permit. |
| |
| 2)
| Each CAIR permit will be issued pursuant to Section 39 or and 39.5 of the Act and will contain federally enforceable conditions addressing all applicable CAIR NOx Ozone Season Trading Program requirements and will be a complete and segregable portion of the source’s entire permit pursuant to subsection (a)(1) of this Section. |
| |
| 3)
| No CAIR permit may be issued, and no CAIR NOx Ozone Season compliance account may be established for a CAIR NOx Ozone Season, until the Agency and USEPA have received a complete certificate of representation for a CAIR designated representative pursuant to 40 CFR 96, subpart BBBB, for the CAIR NOx Ozone Season source and the CAIR NOx Ozone Season unit at the source. |
| |
| 4)
| For all CAIR NOx Ozone Season units that commenced operation before July 1 December 31, 2007, the owner or operator of the unit must submit a CAIR permit application meeting the requirements of this Section 225.520 on or before July 1 December 31, 2007. |
| |
| 5)
| For all units that commence operation on or after July 1 December 31, 2007, the owner or operator of these units must submit applications for construction and operating permits pursuant to the requirements of Sections 39 and 39.5 of the Act, as applicable, and 35 Ill. Adm. Code 201, and the applications must specify that they are applying for CAIR permits and must address the CAIR permit application requirements of this Section 225.520. |
| |
| 1)
| Duty to apply: The owner or operator of any source with one or more CAIR NOx Ozone Season units must submit to the Agency a CAIR permit application for the source covering each CAIR NOx Ozone Season unit pursuant to subsection (b)(2) of this Section by the applicable deadline in subsection (a)(4) or (a)(5) of this Section. The owner or operator of any source with one or more CAIR NOx Ozone Season units must reapply for a CAIR permit for the source as required by this Subpart, 35 Ill. Adm. Code 201, and, as applicable, Sections 39 and 39.5 of the Act. |
| |
| 2)
| Information requirements for CAIR permit applications. A complete CAIR permit application must include the following elements concerning the source for which the application is submitted: |
| |
| A)
| Identification of the source, including plant name. The ORIS (Office of Regulatory Information Systems) or facility code assigned to the source by the Energy Information Administration must also be included, if applicable; |
| |
| B)
| Identification of each CAIR NOx Ozone Season unit at the source; and |
| |
| C)
| The compliance requirements applicable to each CAIR NOx Ozone Season unit as set forth in Section 225.510. |
| |
| 3)
| An application for a CAIR permit will be treated as a modification of the CAIR NOx Ozone Season source’s existing federally enforceable permit, if such a permit has been issued for that source, and will be subject to the same procedural requirements. When the Agency issues a CAIR permit pursuant to the requirements of this Section 225.520, it will be incorporated into and become part of that source’s existing federally enforceable permit. |
| |
| c)
| Permit content: Each CAIR permit is deemed to incorporate automatically the definitions and terms pursuant to specified in Section 225.120 130 and 40 CFR 96.302, as incorporated by reference in Section 225.140, and, upon recordation of USEPA under 40 CFR 96, subparts FFFF and GGGG, as incorporated by reference in Section 225.140, every allocation, transfer, or deduction of a CAIR NOx Ozone Season allowance to or from the compliance account of the CAIR NOx Ozone Season source covered by the permit. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
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| Section 225.525
| Ozone Season Trading Budget |
| |
The CAIR NOx Ozone Season Trading budget available for allowance allocations for each control period will be determined as follows:
| a)
| The total base CAIR NOx Ozone Season Trading budget is 30,701 tons per control period for the years 2009 through 2014, subject to a reduction for two set-asides, the NUSA and the CASA. Five percent of the budget will be allocated to the NUSA and 25 percent will be allocated to the CASA, resulting in a CAIR NOx Ozone Season Trading budget available for allocation of 21,491 tons per control period pursuant to Section 225.540. The requirements of the NUSA are set forth in Section 225.545, and the requirements of the CASA are set forth in Sections 225.555 through 225.570. |
| |
| b)
| The total base CAIR NOx Ozone Season Trading budget is 28,981 tons per control period for the year 2015 and thereafter, subject to a reduction for two set-asides, the NUSA and the CASA. Five percent of the budget will be allocated to the NUSA and 25 percent will be allocated to the CASA, resulting in a CAIR NOx Ozone Season Trading budget available for allocation of 20,287 tons per control period pursuant to Section 225.540. |
| |
| c)
| If USEPA adjusts the total base CAIR NOx Ozone Season Trading budget for any reason, the Agency will adjust the base CAIR NOx Ozone Season Trading budget and the CAIR NOx Ozone Season Trading budget available for allocation, accordingly. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| Section 225.530
| Timing for Ozone Season Allocations |
| |
| a)
| No later than July 31 On or before September 25, 2007, the Agency will submit to USEPA the CAIR NOx Ozone Season allowance allocations, in accordance with Sections 225.535 and 225.540, for the 2009, 2010, and 2011 control periods. | |
| | | |
| b)
| By October July, 2008 and October July 31 of each year thereafter, the Agency will submit to USEPA the CAIR NOx Ozone Season allowance allocations in accordance with Sections 225.535 and 225.540, for the control period four years after the year of the applicable deadline for submission pursuant to this Section 225.530. For example, on July 31, 2008, the Agency will submit to USEPA the allocation for the 2012 control period. | | |
| | | |
| c)
| The Agency will allocate allowances from the NUSA to For CAIR NOx Ozone Season units that commence commercial operation on or after May 1, 2006, that have not been allocated allowances under Section 225.440 for the applicable or any preceding control period, the Agency will allocate allowances from the NUSA in accordance with Section 225.545. The Agency will report these allocations to USEPA by July 31 of the applicable control period. For example, on July 31, 2009, the Agency will submit to USEPA the allocations from the NUSA for the 2009 control period. |
| | | |
| d)
| The Agency will allocate allowances from the CASA to energy efficiency, renewable energy, and clean technology projects pursuant to the criteria in Sections 225.555 through 225.570. The Agency will report these allocations to USEPA by October 1 of each year. For example, on October 1, 2009, the Agency will submit to USEPA the allocations from the CASA for the 2009 control period, based on reductions made in the 2008 control period. |
| | | |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| Section 225.535
| Methodology for Calculating Ozone Season Allocations |
| | | |
The Agency will calculate converted gross electrical output (CGO), in MWh, for each CAIR NOx Ozone Season unit that has operated during at least one control period prior to the calendar year in which the Agency reports the allocations to USEPA as follows:
| a)
| For control periods 2009, 2010, and 2011, the owner or operator of the unit must submit in writing to the Agency, by June 1September 15, 2007, a statement that either gross electrical output data or heat input data is to be used to calculate converted gross electrical output. The data shall be used to calculate converted gross electrical output pursuant to either subsection (a)(1) or (a)(2) of this Section: |
| |
| 1)
| Gross electrical output: If the unit has four or five control periods of data, then the gross electrical output (GO) will be the average of the unit’s three highest gross electrical outputs from the 2001, 2002, 2003, 2004, or 2005 control periods. If the unit has three or fewer control periods of gross electrical outputs, the gross electrical output will be the average of those control periods for which data is available. If the unit does not have gross electrical output for the 2004 and 2005 control periods, the gross electrical output will be the gross electrical output from the 2005 control period. If a generator is served by two or more units, then the gross electrical output of the generator will be attributed to each unit in proportion to the unit’s share of the total control period heat input of these units for the control period. The unit’s converted gross electrical output will be calculated as follows: |
| |
A) If the unit is coal-fired:
CGO (in MWh) = GO (in MWh)
´
MWh
´
1.0;
B) If the unit is oil-fired:
CGO (in MWh) = GO (in MWh)
´
MWh
´
0.6; or
C) If the unit is neither coal-fired nor oil-fired:
CGO (in MWh) = GO (in MWh)
´
MWh
´
0.4.
| 2)
| If heat Heat input (HI): If the unit has four or five control periods of data, the average of the unit’s three highest control period heat inputs from 2001, 2002, 2003, 2004, or 2005 will be used. If the unit has three or fewer control periods of heat input data, the heat input will be the average of those control periods for which data is available. from the 2003, 2004, or 2005 control periods, the heat input shall be the average of those control periods. If the unit does not have heat input from the 2004 and 2005 control periods, the heat input from the 2005 control period will be used. The unit’s converted gross electrical output will be calculated as follows: |
| |
A) If the unit is coal-fired:
CGO (in MWh) = HI (in mmBtu)
´
0.0967;
B) If the unit is oil-fired:
CGO (in MWh) = HI (in mmBtu)
´
0.0580; or
C) If the unit is neither coal-fired nor oil-fired:
CGO (in MWh) = HI (in mmBtu)
´
0.0387.
| b)
| For control periods 2012 and 2013, the owner or operator of the unit must submit in writing to the Agency, by June 1, 2008, a statement that either gross electrical output data or heat input data will is to be used to calculate the unit’s converted gross electrical output. The unit’s converted gross electrical output shall be calculated pursuant to either subsection (b)(1) or (b)(2) of this Section: |
| |
| 1)
| Gross electrical output: The average of the unit’s two most recent years of control period gross electrical output, if available; otherwise it will be the unit’s most recent control period’s gross electrical output. If a unit commences commercial operation in the 2007 control period and does not have gross electrical output for the 2006 control period, the gross electrical output from the 2007 control period will be used. If a generator is served by two or more units, the gross electrical output of the generator shall be attributed to each unit in proportion to the unit’s share of the total control period heat input of such units for the control period. The unit’s converted gross electrical output shall be calculated as follows: |
| |
A) If the unit is coal-fired:
CGO (in MWh) = GO (in MWh)
´
MWh
´
1.0;
B) If the unit is oil-fired:
CGO (in MWh) = GO (in MWh)
´
MWh
´
0.6;
|
| |
C) If the unit is neither coal-fired nor oil-fired:
CGO (in MWh) = GO (in MWh)
´
MWh
´
0.4.
|
| |
| 2)
| Heat input: The average of the unit’s two most recent years of control period heat inputs; otherwise the unit’s most recent control period’s heat input, e.g., for the 2012 control period, the average of the unit’s heat input from the 2006 and 2007 control periods. If the unit does not have heat input from the 2006 and 2007 control periods, the heat input from the 2007 control period shall be used. The unit’s converted gross electrical output shall be calculated as follows: |
| |
A) If the unit is coal-fired:
| CGO (in MWh) = HI (in mmBtu)
´
0.0967;
|
| |
B) If the unit is oil-fired:
| CGO (in MWh) = HI (in mmBtu)
´
0.0580; or
|
| |
C) If the unit is neither coal-fired nor oil-fired:
| CGO (in MWh) = HI (in mmBtu)
´
0.0387.
|
| |
| c)
| For control period 2014 and thereafter, the unit’s gross electrical output will be the average of the unit’s two most recent control period’s gross electrical output, if available; otherwise it will be the unit’s most recent control period’s gross electrical output. If a unit commences commercial operation in the most recent control period and does not have gross electrical output from the most recent control period, e.g. if the unit commences commercial operation in the 2009 control period and does not have gross electrical output from the 2008 control period, gross electrical output from the 2009 control period will be used. If a generator is served by two or more units, the gross electrical output of the generator will be attributed to each unit in proportion to the unit’s share of the total control period heat input of these units for the control period. The unit’s converted gross electrical output will be calculated as follows: |
| |
| 1)
| If the unit is coal-fired: |
| CGO (in MWh) = GO (in MWh)
´
1.0;
|
| |
| 2)
| If the unit is oil-fired: |
| CGO (in MWh) = GO (in MWh)
´
0.6; or
|
| |
| 3)
| If the unit is neither coal-fired nor oil-fired: |
| CGO (in MWh) = GO (in MWh)
´
0.4.
|
| |
| d)
| For a unit that is a combustion turbine or boiler and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy, the Agency will add the converted gross electrical output calculated for electricity pursuant to subsection (a), (b), or (c) of this Section to the converted useful thermal energy (CUTE) to determine the total converted gross electrical output for the unit (TCGO). The Agency will determine the converted useful thermal energy by using the average of the unit’s control period useful thermal energy for the prior two control periods, if available. In the first control period for which the unit us considered to be an existing unit rather than a new unit, ; otherwise the unit’s control period useful thermal output for the prior year will be used. The converted useful thermal energy will be determined using the following equations: |
| |
| 1)
| If the unit is coal-fired: |
| CUTE (in MWh) = UTE (in mmBtu)
´
0.2930;
|
| |
| 2)
| If the unit is oil-fired: |
| CUTE (in MWh) = UTE (in mmBtu)
´
0.1758; or
|
| |
| 3)
| If the unit is neither coal-fired nor oil-fired: |
| CUTE (in MWh) = UTE (in mmBtu)
´
0.1172.
|
| |
| e)
| The CAIR NOx Ozone Season unit’s converted gross electrical output and converted useful thermal energy in subsections (a)(1), (b)(1), (c), and (d) of this Section for each control period will be based on the best available data reported or available to the Agency for the CAIR NOx Ozone Season unit pursuant to the provisions of Section 225.550. |
| |
| f)
| The CAIR NOx Ozone Season unit’s heat input in subsections (a)(2) and (b)(2) of this Section for each control period will be determined in accordance with 40 CFR 75, as incorporated by reference in Section 225.140. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| |
| Section 225.540
| Ozone Season Allocations |
| |
| a)
| For the 2009 control period, and each control period thereafter, the Agency will allocate, CAIR NOx Ozone Season allowances to all CAIR NOx Ozone Season units in Illinois for which the Agency has calculated the converted gross electrical output pursuant to Section 225.535(a), (b), or (c), or total converted gross electrical output pursuant to Section 225.535(d), as applicable, a total amount of CAIR NOx Ozone Season allowances equal to tons of NOx emissions in the CAIR NOx Ozone Season Trading budget available for allocation as determined in Section 225.525 and, as adjusted to add allowances not allocated pursuant to subsection (b) of this Section 225.540 in the previous year’s allocation. |
| |
| b)
| The Agency will allocate CAIR NOx Ozone Season allowances to each CAIR NOx Ozone Season unit on a pro-rata basis using the unit’s converted gross electrical output pursuant to Section 225.535(a), (b), or (c), or total converted gross electrical output calculated pursuant to Section 225.535(d), as applicable, to the extent whole allowances may be allocated. The Agency will retain any additional allowances beyond this allocation of whole allowances for allocation pursuant to subsection (a) of this Section in the next control period. If there are insufficient allowances to allocate whole allowances pro rata, these unallocated allowances will be retained by the Agency and will be available for allocation in later control periods. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.545 New Unit Set-Aside (NUSA)
For the 2009 control period and each control period thereafter, the Agency will allocate CAIR NOx Ozone Season allowances from the NUSA to CAIR NOx Ozone Season units that commenced commercial operation on or after May 1, 2006, and do not yet have an allocation for the particular control period or any preceding control period pursuant to Section 225.540, in accordance with the following procedures:
| a)
| Beginning with the 2009 control period and each control period thereafter, the Agency will establish a separate NUSA for each control period. Each new unit set-aside NUSA will be allocated CAIR NOx Ozone Season allowances equal to 5 five percent of the amount of tons of NOx emissions in the base CAIR NOx Ozone Season Trading budget in Section 225.525. |
| |
| b)
| The CAIR designated representative of a new CAIR NOx Ozone Season unit may submit to the Agency a request, in a format specified by the Agency, to be allocated CAIR NOx Ozone Season allowances from the NUSA, starting with the first control period after the control period in which the new unit commences commercial operation and until the first fifth control period after the control period in which the unit commenced commercial operation for which the unit may use CAIR NOx Ozone Season allowances allocated to the unit pursuant to Section 225.540. The NUSA allowance allocation request may only be submitted after a new unit has operated during one control period, and no later than March 1 of the control period for which allowances from the NUSA are being requested. |
| |
| c)
| In a NUSA allowance allocation request pursuant to subsection (b) of this Section, the CAIR designated representative must provide in its request information for gross electrical output and useful thermal energy, if any, for the new CAIR NOx Ozone Season unit for that control period. |
| |
| d)
| The Agency will allocate allowances from the NUSA to a new CAIR NOx Ozone Season unit using the following procedures: |
| |
| 1)
| For each new CAIR NOx Ozone Season unit, the unit’s gross electrical output for the most recent control period will be used to calculate the unit’s gross electrical output. If a generator is served by two or more units, the gross electrical output of the generator will be attributed to each unit in proportion to the unit’s share of the total control period heat input of these units for the control period. The new unit’s converted gross electrical output will be calculated as follows: |
| |
A) If the unit is coal-fired:
CGO (in MWh) = GO (in MWh)
´
1.0;
B) If the unit is oil-fired:
CGO (in MWh) = GO (in MWh)
´
0.6; or
C) If the unit is neither coal-fired nor oil-fired:
CGO (in MWh) = GO (in MWh)
´
0.4.
| 2)
| If the unit is a combustion turbine or boiler and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy, the Agency will add the converted gross electrical output calculated for electricity pursuant to subsection (d)(1) of this Section to the converted useful thermal energy to determine the total converted gross electrical output for the unit. The Agency will determine the converted useful thermal energy using the unit’s useful thermal energy for the most recent control period. The converted useful thermal energy will be determined using the following equations: |
| |
A) If the unit is coal-fired:
CUTE (in MWh) = UTE (in mmBtu)
´
0.2930;
B) If the unit is oil-fired:
CUTE (in MWh) = UTE (in mmBtu)
´
0.1758; or
C) If the unit is neither coal-fired nor oil-fired:
CUTE (in MWh) = UTE (in mmBtu)
´
0.1172.
| 3)
| The gross electrical output and useful thermal energy in subsections (d)(1) and (d)(2) of this Section for the each control period in each year will be based on the best available data reported or available to the Agency for the CAIR NOx Ozone Season unit pursuant to the provisions of Section 225.550 . |
| |
| 4)
| The Agency will determine a unit’s unprorated allocation (UAy) using the unit’s converted gross electrical output plus the unit’s converted useful thermal energy, if any, calculated in subsections (d)(1) and (d)(2) of this Section, converted to approximate NOx tons (the unit’s unprorated allocation), as follows: |
| |
Where:
= unprorated allocation to a new CAIR NOx
Ozone Season unit.
= converted gross electrical or total converted
gross electrical output, as applicable, for a
new CAIR NOx Ozone Season unit.
| 5)
| The Agency will allocate CAIR NOx Ozone Season allowances from the NUSA to new CAIR NOx Ozone Season units as follows: |
| |
| A)
| If the NUSA for the control period for which CAIR NOx Ozone Season allowances are requested has a number of allowances greater than or equal to the total unprorated allocations for all new units requesting allowances, the Agency will allocate the number of allowances using the unprorated allocation determined for that unit pursuant to subsection (d)(4) of this Section, to the extent that whole allowances may be allocated. For any additional allowances beyond this allocation of whole allowances, the Agency will retain the additional allowances in the NUSA for allocation pursuant to Section 225.545 in later control periods. |
| |
| B)
| If the NUSA for the control period for which the allowances are requested has a number of CAIR NOx Ozone Season allowances less than the total unprorated allocation to all new CAIR NOx Ozone Season units requesting allocations, the Agency will allocate the available allowances for new CAIR NOx Ozone Season units on a pro-rata basis, using the unprorated allocation determined for that unit pursuant to subsection (d)(4) of this Section, to the extent that whole allowances may be allocated. For any additional allowances beyond this allocation of whole allowances, the Agency will retain the additional allowances in the NUSA for allocation pursuant to Section 225.545 in later control periods. If there are insufficient allowances to allocate whole allowances, the unallocated allowances will be retained by the Agency and will be available for allocation in a later control period. |
| |
C)
| If the gross electrical output or useful thermal energy reported to the Agency pursuant to subsection (d) of this Section is later determined to be greater than the unit’s actual gross electrical output or useful thermal energy for the applicable control period, the Agency will reduce the unit’s allocation from the NUSA for the current control period to account for the excess allowances allocated in the prior control period or periods. |
| |
| e)
| The Agency will review each NUSA allowance allocation request pursuant to subsection (b) of this Section. The Agency will accept a NUSA allowance allocation request only if the request meets, or is adjusted by the Agency as necessary to meet, the requirements of this Section 225.545. |
| |
| f)
| By June 1 of the applicable control period, the Agency will notify each CAIR designated representative that submitted a NUSA allowance request of the amount of CAIR NOx Ozone Season allowances from the NUSA, if any, allocated for the control period to the new unit covered by the request. |
| |
| g)
| The Agency will allocate CAIR NOx Ozone Season allowances to new units from the NUSA no later than July 31 of the applicable control period. |
| |
| h)
| After a new CAIR NOx Ozone Season unit has operated in one control period, it becomes an existing unit for the purposes of calculating future allocations in Section 225.540 only, and the Agency will allocate CAIR NOx Ozone Season allowances for that unit, for the control period commencing four years in the future five control periods after the control period in which the unit commenced commercial operation, pursuant to Section 225.540. The new CAIR NOx Ozone Season unit will continue to receive CAIR NOx Ozone Season allowances from the NUSA according to this Section until the unit is eligible to use the CAIR NOx Ozone Season allowances allocated to the unit pursuant to Section 225.540. |
| |
| i)
| If, after the completion of the procedures in subsection (c) of this Section for a control period, any unallocated CAIR NOx Ozone Season allowances remain in the NUSA for the control period, the Agency will, at a minimum, accrue those CAIR NOx Ozone Season allowances for future control period allocations to new CAIR NOx Ozone Season units. The Agency may from time to time elect to retire CAIR NOx Ozone Season allowances in the NUSA that are in excess of 7,245 for the purposes of continued progress toward attainment and maintenance of National Ambient Air Quality Standards pursuant to the CAA. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
| Section 225.550
| Monitoring, Recordkeeping and Reporting Requirements for Gross Electrical Output and Useful Thermal Energy |
| |
| a)
| By January 1, 2008, or by the date of commencing commercial operation, whichever is later, the owner or operator of the CAIR NOx Ozone Season unit must operate a system for accurately measuring gross electrical output that is consistent with the requirements of either 40 CFR 60 or 75; must measure gross electrical output in MW-hrs MWh using such a system; and must record the output of the measurement system at all times. If a generator is served by two or more units, the information to determine each unit’s heat input for that control period must also be recorded, so as to allow each unit’s share of the gross electrical output to be determined. If heat input data is used, the owner or operator must comply with the applicable provisions of 40 CFR 75, as incorporated by reference in Section 225.140. |
| |
| b)
| For a CAIR NOx Ozone Season unit that is a cogeneration unit by January 1, 2007 2008, or by the date the CAIR NOx Ozone Season unit commences to produce useful thermal energy, whichever is later, the owner or operator of a CAIR NOx Ozone Season the unit with cogeneration capabilities must install, calibrate, maintain, and operate meters for steam flow in lbs/hr, temperature in degrees Fahrenheit, and pressure in PSI, to measure and record the useful thermal energy that is produced, in mmBtu/hr, on a continuous basis. Owners and operators of aCAIR NOx Ozone Season unit that produces useful thermal energy but uses an energy transfer medium other than steam, e.g., hot water or glycol, must install, calibrate, maintain, and operate the necessary meters to measure and record the necessary data to express the useful thermal energy produced, in mmBtu/hr, on a continuous basis. If the CAIR NOx Ozone Season unit ceases to produce useful thermal energy, the owner or operator may cease operation of these meters, provided that operation of such meters must be resumed if the CAIR NOx Ozone Season unit resumes production of useful thermal energy. |
| |
| c)
| The owner or operator of a CAIR NOx Ozone Season unit must either report gross electrical output data to the Agency or comply with the applicable provisions for providing heat input data to USEPA as follows: |
| |
| 1)
| By June 1 September 15, 2007, the gross electrical output for control periods 2001, 2002, 2003, 2004 and 2005, if available, and the unit’s useful thermal energy data, if applicable. If a generator is served by two or more units, the documentation needed to determine each unit’s share of the heat input of such units for that control period must also be submitted. If heat input data is used, the owner or operator must comply with the applicable provisions of 40 CFR 75, as incorporated by reference in Section 225.140. |
| |
| 2)
| By June 1, 2008, the gross electrical output for control periods 2006 and 2007, if available, and the unit’s useful thermal energy data, if applicable. If a generator is served by two or more units, the documentation needed to determine each unit’s share of the heat input of such units for that control period must also be submitted. If heat input data is used, the owner or operator must comply with the applicable provisions of 40 CFR 75, as incorporated by reference in Section 225.140. |
| |
| d)
| Beginning with calendar year 2008, the CAIR designated representative of the CAIR NOx Ozone Season unit must submit to the Agency quarterly, by no later than April 30, July 31, October 31, and January 31 of each year, information for the CAIR NOx Ozone Season unit’s gross electrical output, on a monthly basis for the prior quarter, and, if applicable, the unit’s useful thermal energy for each month. |
| |
| e)
| The owner or operator of a CAIR NOx Ozone Season unit must maintain on-site the monitoring plan detailing the monitoring system, maintenance of the monitoring system, including quality assurance activities pursuant to the requirements of 40 CFR 60 and or 75, as applicable, including the applicable appropriate provisions for the measurement of gross electrical output for the CAIR NOx Ozone Season Trading Program and, if applicable, for new units. The monitoring plan must include, but is not limited to: |
| |
| 1)
| A description of the system to be used for the measurement of gross electrical output pursuant to Section 225.450 550(a), including a list of any data logging devices, solid-state kW meters, rotating kW meters, electromechanical kW meters, current transformers, transducers, potential transformers, pressure taps, flow venturi, orifice plates, flow nozzles, vortex meters, turbine meters, pressure transmitters, differential pressure transmitters, temperature transmitters, thermocouples, resistance temperature detectors, and any equipment or methods used to accurately measure gross electrical output. |
| |
| 2)
| A certification statement by the CAIR designated representative that all components of the gross electrical output system have been tested to be accurate within three percent and that the gross electrical output system is accurate to within ten percent. |
| |
| f)
| The owner or operator of a CAIR NOx Ozone Season unit must retain records for at least 5 five years from the date the record is created or the data is collected in under subsections (a) and (b) of this Section, and the reports are submitted to the Agency and USEPA in accordance with subsections (c) and (d) of this Section. The owner or operator of a CAIR NOx Ozone Season unit must retain the monitoring plan required in subsection (e) of this Section for at least five years from the date that it is replaced by a new or revised monitoring plan. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.555 Clean Air Set-Aside (CASA)
| a)
| A project sponsor may apply for allowances from the CASA for sponsoring an energy efficiency and conservation, renewable energy, or clean technology project as set forth in Section 225.560 by submitting the application required by Section 225.570. |
| |
| b)
| Notwithstanding subsection (a) of this Section, a project sponsor with a CAIR NOx Ozone Season source that is out of compliance with this Subpart for a given control period may not apply for allowances from the CASA for that control period. If a source receives CAIR NOx Ozone Season allowances from the CASA and then is subsequently found to have been out of compliance with this Subpart for the applicable control period or periods, the project sponsor must restore the CAIR NOx Ozone Season allowances that it received pursuant to its CASA request or an equivalent number of CAIR NOx Ozone Season allowances to the CASA within six months of after receipt of an Agency notice that NOx Ozone Season allowances must be restored. These allowances will be assigned to the fund from which they were distributed. |
| |
| c)
| CAIR NOx Ozone Season allowances from the CASA will be allocated in accordance with the procedures in Section 225.575. |
| |
| d)
| The project sponsor may submit an application that aggregates two or more projects under a CASA project category that would individually result in less than one allowance, but that equal at a minimum one whole allowance when aggregated. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.560 Energy Efficiency and Conservation, Renewable Energy, and Clean
Technology Projects
| a)
| Energy efficiency and conservation projects means any of the following projects implemented and located in Illinois: |
| |
| 1)
| Demand side management projects that reduce the overall power demand by using less energy include: |
| |
| A)
| Smart building management software that more efficiently regulates power flows. |
| |
| B)
| The use of or replacement to high efficiency motors, pumps, compressors, or steam systems. |
| |
| C)
| Lighting retrofits. |
| |
| 2)
| Energy efficient new building construction projects include: |
| |
| A)
| ENERGY STAR-qualified new home projects. |
| |
| B)
| Measures to reduce or conserve energy consumption beyond the requirements of the Illinois Energy Conservation Code for Commercial Buildings [20 ILCS 687/6-3]. |
| |
| C)
| New residential construction projects that qualify for Energy Efficient Tax Incentives pursuant to the Energy Policy Act of 2005 (42 USC 15801 (2005)). |
| |
| 3)
| Supply-side energy efficiency projects include projects implemented to improve the efficiency in electricity generation by coal-fired power plants and the efficiency of electrical transmission and distribution systems. |
| |
| 4)
| Highly efficient power generation projects, such as, but not limited to, combined cycle projects, combined heat and power, and microturbines. To be considered a highly efficient power generation project pursuant to this subsection (a)(4), a project must meet the following applicable thresholds and criteria listed below: |
| |
| A)
| For combined heat and power projects generating both electricity and useful thermal energy for space, water, or industrial process heat, a rated-energy efficiency of at least 60 percent: and is the project shall not be a CAIR NOx Ozone Season unit. |
| |
| B)
| For combined cycle projects rated at greater than 0.50 MW, a rated-energy efficiency of at least 50 percent. |
| |
| C)
| For microturbine projects rated at or below 0.50 MW and all other projects a rated-energy efficiency of at least 40 percent. |
| |
| b)
| Renewable energy unit project means any of the following projects implemented and located in Illinois: |
| |
| 1)
| Zero-emission electric generating units projects, including wind, solar (thermal or photovoltaic), and hydropower projects. Eligible hydropower plants are restricted to new generators that are not replacements of existing generators, that commenced operation on or after January 1, 2006, and that do not involve the significant expansion of an existing dam or the construction of a new dam. |
| |
| 2)
| Renewable energy units are those units that generate electricity using more than 50 percent of the heat input, on an annual basis, from dedicated crops grown for energy production or the capture systems for methane gas from landfills, water treatment plants or sewage treatment plants, and organic waste biomass, and other similar sources of non-fossil fuel energy. Renewable energy projects do not include energy from incineration by burning or heating of waste wood, tires, garbage, general household waste, institutional lunchroom waste, or office waste, landscape waste, or construction or demolition debris. |
| |
| c)
| Clean technology projects for reducing emissions from producing electricity and useful thermal energy means any of the following projects implemented and located in Illinois: |
| |
| 1)
| Air pollution control equipment upgrades for control of NOx emissions at existing coal-fired EGUs, as follows: installation of a selective catalytic reduction (SCR) or selective non-catalytic reduction (SNCR) system, or other emission control technologies. For this purpose, a unit will be considered “existing” after it has been in commercial operation for at least eight years. Air pollution control upgrades do not include the addition of low NOx burners, overfired air techniques, gas reburning techniques, flue gas conditioning techniques for the control of NOx emissions, projects involving upgrades or replacement of electrostatic precipitators, or addition of an activated carbon injection, or other sorbent injection for control of mercury. For this purpose, a unit will be considered “existing” after it has been in commercial operation for at least eight years. |
| |
| 2)
| Clean coal technologies projects include: |
| |
| A)
| Integrated gasification combined cycle (IGCC) plants. |
| |
| B)
| Fluidized bed coal combustion that commenced operation prior to December 31, 2006. |
| |
| d)
| In addition to those projects excluded in subsections (a) through (c) of this Section, the following projects are also not energy efficiency and conservation, renewable energy, or clean technology projects: |
| |
| 1)
| Nuclear power projects. |
| | |
| 2)
| Projects required to meet emission standards or technology requirements under State or federal law or regulation, except that allowances may be allocated for projects undertaken pursuant to Section 225.233 or Subpart F. |
| | |
| 3)
| Projects used to meet the requirements of a court order or consent decree, except that allowances may be allocated for: |
| | |
| A)
| Emission rates or limits achieved that are lower than what is required to meet the emission rates or limits for SO2 or NOx, or for installing a baghouse as provided for in a court order or consent decree entered into before May 30, 2006. |
| |
| B)
| Projects used to meet the requirements of a court order or consent decree entered into on or after May 30, 2006, if the court order or consent decree does not specifically preclude such allocations. |
| |
| 4)
| A Supplemental Environmental Project (SEP). |
| |
| e)
| Applications for projects implemented and located in Illinois that are not specifically listed in subsections (a) through (c) of this Section, and that are not specifically excluded by definition in subsections (a) through (c) of this Section or by specific exclusion in subsection (d) of this Section, may be submitted to the Agency. The application must designate which category or categories from those listed in subsections (a)(1) through (c)(2)(B) of this Section best fit the proposed project and the applicable formula pursuant to Section 225.565(b) to calculate the number of allowances that it is requesting. The Agency will determine whether the application is approvable based on a sufficient demonstration by the project sponsor that the project is a new type of energy efficiency, renewable energy, or clean technology project, similar in its effects as the projects specifically listed in subsections (a) through (c) of this Section. |
| |
| f)
| Early adopter projects include projects that meet the criteria for any energy efficiency and conservation, renewable energy, or clean technology projects listed in subsections (a), (b), (c), and (e) of this Section and commence construction between July 1, 2006 and December 31, 2012. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.565 Clean Air Set-Aside (CASA) Allowances
| a)
| The CAIR NOx Ozone Season allowances for the CASA for each control period will be assigned to the following categories of projects: |
| |
Phase I Phase II
| (2009-2014)
| (2015 and thereafter) |
| |
1) Energy Efficiency and Conservation/ 3684 3479
Renewable Energy
2) Air Pollution Control Equipment 1535 1448
Upgrades
3) Clean Coal Technology Projects 1842 1738
4) Early Adopters 614 580
| b)
| The following formulas must be used to determine the number of CASA allowances that may be allocated to a project per control period: |
| | | |
| 1)
| For an energy efficiency and conservation project pursuant to Section 225.560(a)(1) through (a)(4)(A), the number of allowances must be calculated using the number of megawatt hours of electricity that was not consumed during a control period and the following formula: |
| | | |
A = (MWhc)
´
(1.5 lb/MWh) / 2000 lb
Where:
A = The number of allowances for a particular project.
MWhc = The number of megawatt hours of electricity
conserved or generated during a control period by a
project.
| 2)
| For a zero emission electric generating project pursuant to Section 225.560(b)(1), the number of allowances must be calculated using the number of megawatt hours of electricity generated during a control period and the following formula: |
| | | |
A = (MWhg)
´
(2.0 lb/MWh) / 2000 lb
Where:
A = The number of allowances for a particular project
MWhg = The number of megawatt hours of electricity
generated during a control period by a project.
| 3)
| For a renewable energy emission unit pursuant to Section 225.560(b)(2), the number of allowances must be calculated using the number of megawatt hours of electricity generated during a control period and the following formula: |
| | | |
A = (MWhg)
´
(0.5 lb/MWh) / 2000 lb
Where:
A = The number of allowances for a particular project.
MWhg = The number of MW hours of electricity generated
| | during a control period by a project.
|
| | |
| 4)
| For an air pollution control equipment upgrade project pursuant to Section 225.560(c)(1), the number of allowances must be calculated using the emission rate before and after replacement or improvement, and the following formula: |
| | | |
A = (MWhg)
´
0.10
´
(ER
B
lb/MWh - ER
A
lb/MWh) / 2000 lb
Where:
A = The number of allowances for a particular project.
MWhg = The number of MWhs of electricity
generated during a control period by a project.
ER
B
= Average NOx emission rate based on CEMS data
from the most recent two control periods prior to
the replacement or improvement of the control equipment in lb/MWh, unless subject to a consent decree or court order. For units subject to a consent decree or court order entered into before May 30, 2006, ERB is limited to emission rates or limits that are lower than the emission rate or limit required in the consent decree or court order. On or after May 30, 2006, ERB is limited to emission rates or limits specified in the consent decree or court order. If such limit is not expressed in lb/MWh, the limit shall be converted into lb/MWh using a heat rate of 10 mmBtu/1 MW.
ER
A
= Average NOx emission rate for the applicable
control period data based on CEMS data in
lb/MWh.
| 5)
| For highly efficient power generation and clean coal technology projects: |
| | | |
| A)
| For projects other than fluidized coal combustion pursuant to Section 225.460(a)(4)(B), (a)(4)(C), and (c)(2), the number of allowances must be calculated using the number of megawatt hours MWh of electricity the project generates during a control period and the following formula: |
| | |
A = (MWhg)
´
(1.0 lb/MWh – ER lb/MWh) / 2000 lb
Where:
A = The number of allowances for a particular
project.
MWhg = The number of megawatt hours of electricity
generated during a control period by a
project.
ER = Annual average NOx emission rate based on
CEMS data in 1b/MWh.
| B)
| For fluidized bed coal combustion projects pursuant to Section 225.460 (c)(2), the number of allowances shall be calculated using the number of gross MWh of electricity the project generates during a control period and the following formula: |
| |
A = (MWhg) x (1.4 lb/MWh – ER lb/MWh) / 2000 lb
| Where:
| |
| A
| = The number of allowances for a particular project. |
| MWhg
| = The number of gross MWh of electricity generated during a control period by a project. |
| ER = Annual NOx emission rate for the control
|
| Period based on CEMS data in lb/MWh
|
| |
| 6)
| For a CASA project that commences construction before December 31, 2012, in addition to the allowances allocated pursuant to subsections (b)(1) through (b)(5) of this Section, a project sponsor may also request additional allowances under the early adopter project category pursuant to Section 225.460(e) based on the following formula: |
| | | | |
Where:
A = The number of allowances for a particular project as
determined in subsections (b)(1) through (b)(5) of
this Section.
Ai = The number of allowances as determined in
subsection (b)(1), (b)(2), (b)(3), (b)(4) or (b)(5) of
this Section for a given project.
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.570 Clean Air Set-Aside (CASA) Applications
| a)
| A project sponsor may request allowances if the project commenced construction on or after the dates listed below in this subsection. The project sponsor may request and be allocated allowances from more than one CASA category for a project, if applicable. |
| |
| 1)
| Demand side management, energy efficient new construction, and supply side energy efficiency and conservation projects that commenced construction on or after January 1, 2003; |
| |
| 2)
| Fluidized bed coal combustion projects, highly efficient power generation operations projects, or renewable energy emission units, which that commenced construction on or after January 1, 2001; and |
| |
| 3)
| All other projects on or after July 1, 2006. |
|
| |
| b)
| Beginning with the 2009 control period and each control period thereafter, a project sponsor may request allowances from the CASA. The application must be submitted to the Agency by May 1 of the control period for which the allowances are being requested. |
| |
| c)
| The allocation will be based on the electricity conserved or generated in the control period preceding the calendar year in which the application is submitted. To apply for a CAIR NOx Ozone Season allocation from the CASA, project sponsors must provide the Agency with the following information: |
| |
| 1)
| Identification of the project sponsor, including name, address, type of organization, certification that the project sponsor has met the definition of “project sponsor” as set forth in Section 225.130, and names of the principals or corporate officials. |
| |
| 2)
| The number of the CAIR NOx Ozone Season general or compliance account for the project and the name of the associated CAIR account representative. | |
| | |
| 3)
| A description of the project or projects, location, the role of the project sponsor in the projects, and a general explanation of how the amount of energy conserved or generated was measured, verified, and calculated, and the number of allowances requested with the supporting calculations. The number of allowances requested will be calculated using the applicable formula from Section 225.570(b). |
| | |
| 4)
| Detailed information to support the request for allowances, including the following types of documentation for the measurement and verification of the NOx emissions reductions, electricity generated, or electricity conserved using established measurement verification procedures, as applicable. The measurement and verification required will depend on the type of project proposed. |
| |
| A)
| As applicable, documentation of the project’s base and control period conditions and resultant base and control period energy data, using the procedures and methods included in M&V Guidelines: Measurement and Verification for Federal Energy Projects, incorporated by reference in Section 225.140, or other method approved by the Agency. Examples include: |
| | |
| i)
| Energy consumption and demand profiles; |
| | |
| ii)
| Occupancy type; | |
| | |
| iii)
| Density and periods; | |
| | |
| iv)
| Space conditions or plant throughput for each operating period and season. (for example, in a building this would include the light level and color, space temperature, humidity and ventilation); |
| | |
| v)
| Equipment inventory, nameplate data, location, and condition; and |
| | |
vi) Equipment operating practices (schedules and set points, actual temperatures/pressures);
| B)
| Emissions data, including, if applicable, CEMS data; |
| |
| C)
| Information for rated–energy efficiency, including supporting documentation and calculations; and |
| |
| D)
| Electricity, in MWh, generated or conserved for the applicable control period. |
| |
| 5)
| Notwithstanding the requirements of subsection (c)(4) of this Section, applications for fewer than five allowances may propose other reliable and applicable methods of quantification acceptable to the Agency. |
| |
| 6)
| Any additional information requested by the Agency to determine the correctness of the requested number of allowances, including site information, project specifications, supporting calculations, operating procedures, and maintenance procedures. |
| |
| 7)
| The following certification by the responsible official for the project sponsor and the applicable CAIR account representative for the project: |
| |
“I am authorized to make this submission on behalf of the project sponsor and the holder of the CAIR NOx Ozone Season general account or compliance account for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this application and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information.”
| d)
| A project sponsor may request allowances from the CASA for each project for a total number of control periods not to exceed the number of control periods listed below in this subsection. After a project has been allocated allowances from the CASA, subsequent requests for the project from the project sponsor must include the information required by subsections (c)(1), (c)(2), (c)(3) and (c)(7) of this Section, a description of any changes or further improvements made to the project, and information specified in subsections (c)(5) and (c)(6) as specifically requested by the Agency. |
| |
| 1)
| For energy efficiency and conservation projects (except for efficient operation and renewable energy projects), for a total of eight control periods. |
| |
| 2)
| For early adopter projects, for a total of ten control periods. |
| |
| 3)
| For air pollution control equipment upgrades, for a total of 15 control periods. |
| |
| 4)
| For renewable energy projects, clean coal technology, and highly efficient power generation projects, for each year that the project is in operation. |
| |
| e)
| A project sponsor must keep copies of all CASA applications and the documentation used to support the application for at least five years. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
Section 225.575 Agency Action on Clean Air Set-Aside (CASA) Applications
| a)
| By September 1, 2009 and each September 1 thereafter, the Agency will determine the total number of allowances that are approvable for allocation to project sponsors based upon the applications submitted pursuant to Section 225.570. |
| |
| 1)
| The Agency will determine the number of CAIR NOx Ozone Season allowances that are approvable based on the formulas and the criteria for such projects. The Agency will notify a project sponsor within 90 days after receipt of an application if the project is not approvable, the number of allowances requested is not approvable, or additional information is needed by the Agency to complete its review of the application. |
| |
| 2)
| If the total number of CAIR NOx Ozone Season allowances requested for approved projects is less than or equal to the number of CAIR NOx Ozone Season allowances in the CASA project category, the number of allowances that are approved shall be allocated to each CAIR NOx Ozone Season compliance or general account. |
| |
| 3)
| If more CAIR NOx Ozone Season allowances are requested than the number of CAIR NOx Ozone Season allowances in a given CASA project category, allowances will be allocated on a pro-rata basis based on the number of allowances available, subject to further adjustment as provided for by subsection (b) of this Section. CAIR NOx Ozone Season allowances will be allocated, transferred, or used as whole allowances. The number of whole allowances will be determined by rounding down for decimals less than 0.5 and rounding up for decimals of 0.5 or greater. |
| |
| b)
| For control periods 2011 and thereafter: |
| |
| 1)
| If there are, after the completion of the procedures in subsection (a) of this Section for a control period, any CAIR NOx Ozone Season allowances not allocated to a CASA project for the control period, the remaining allowances will accrue in each CASA project category up to twice the number of allowances that are assigned to the project category for each control period as set forth in Section 225.565 . |
| |
| 2)
| If any allowances remain after allocations pursuant to subsection (a) of this Section, the Agency will allocate these allowances pro-rata to projects that received fewer allowances than requested, based on the number of allowances not allocated but approved by the Agency for the project under CASA. No project may be allocated more allowances than approved by the Agency for the applicable control period. |
| |
| 3)
| If any allowances remain after the allocation of allowances pursuant to subsection (b)(2) of this Section, the Agency will then distribute pro-rata the remaining allowances to project categories that have fewer than twice the number of allowances assigned to the project category. The pro-rata distribution will be based on the difference between two times the project category and the number of allowances that remain in the project category. |
| | |
| 4)
| If allowances still remain undistributed after the allocations and distributions in the above subsections (b)(1) through (b)(3) are completed, the Agency may elect to retire any CAIR NOx Ozone Season allowances that have not been distributed to any CASA category, to continue progress toward attainment or maintenance of the National Ambient Air Quality Standards pursuant to the CAA. |
| |
(Source: Added at 31 Ill. Reg. ________________, effective ______________)
SUBPART F: COMBINED POLLUTANT STANDARDS
Section 225.600 Purpose
The purpose of this Subpart F is to allow an alternate means of compliance with the emissions standards for mercury in Section 225.230(a) for specified EGUs through permanent shut-down, installation of ACI, and the application of pollution control technology for NOx, PM, and SO2 emissions that also reduce mercury emissions as a co-benefit and to establish permanent emissions standards for those specified EGUs. Unless otherwise provided for in this Subpart F, owners and operators of those specified EGUs are not excused from compliance with other applicable requirements of Subparts B, C, D, and E.
(Source: Added at 31 Ill. Reg. ____________, effective _____________)
Section 225.605 Applicability
| a)
| As an alternative to compliance with the emissions standards of Section 225.230(a), the owner or operator of specified EGUs in this Subpart F located at Fisk, Crawford, Joliet, Powerton, Waukegan, and Will County power plants may elect for all of those EGUs as a group to demonstrate compliance pursuant to this Subpart F, which establishes control requirements and emissions standards for NOx, PM, SO2, and mercury. For this purpose, ownership of a specified EGU is determined based on direct ownership, by holding a majority interest in a company that owns the EGU or EGUs, or by the common ownership of the company that owns the EGU, whether through a parent-subsidiary relationship, as a sister corporation, or as an affiliated corporation with the same parent corporation, provided that the owner or operator has the right or authority to submit a CAAPP application on behalf of the EGU. |
| |
| b)
| A specified EGU is a coal-fired EGU listed in Appendix A, irrespective of any subsequent changes in ownership of the EGU or power plant, the operator, unit designation, or name of unit. |
| |
| c)
| The owner or operator of each of the specified EGUs electing to demonstrate compliance with Section 225.230(a) pursuant to this Subpart must submit an application for a CAAPP permit modification to the Agency, as provided for in Section 225.220, that includes the information specified in Section 225.610 that clearly states the owner’s or operator’s election to demonstrate compliance with Section 225.230(a) pursuant to this Subpart F. |
| |
| d)
| If an owner or operator of one or more specified EGUs elects to demonstrate compliance with Section 225.230(a) pursuant to this Subpart F, then all specified EGUs owned or operated in Illinois by the owner or operator as of December 31, 2006, as defined in subsection (a) of this Section, are thereafter subject to the standards and control requirements of this Subpart F. Such EGUs are referred to as a Combined Pollutant Standard (CPS) group. |
| |
| e)
| If an EGU is subject to the requirements of this Section, then the requirements apply to all owners and operators of the EGU, and to the CAIR designated representative for the EGU. |
| |
(Source: Added at 31 Ill. Reg. ____________, effective _____________)
Section 225.610 Notice of Intent
The owner or operator of one or more specified EGUs that intends to comply with Section 225.230(a) by means of this Subpart F must notify the Agency of its intention on or before December 31, 2007. The following information must accompany the notification:
| a)
| The identification of each EGU that will be complying with Section 225.230(a) pursuant to this Subpart F, with evidence that the owner or operator has identified all specified EGUs that it owned or operated in Illinois as of December 31, 2006, and which commenced commercial operation on or before December 31, 2004; |
| |
| b)
| If an EGU identified in subsection (a) of this Section is also owned or operated by a person different than the owner or operator submitting the notice of intent, a demonstration that the submitter has the right to commit the EGU or authorization from the responsible official for the EGU submitting the application; and |
| |
| c)
| A summary of the current control devices installed and operating on each EGU and identification of the additional control devices that will likely be needed for each EGU to comply with emission control requirements of this Subpart F. |
| |
(Source: Added at 31 Ill. Reg. ____________, effective _____________)
Section 225.615 Control Technology Requirements and Emissions Standards for Mercury
| a)
| Control Technology Requirements for Mercury. |
| |
| 1)
| For each EGU in a CPS group other than an EGU that is addressed by subsection (b) of this Section, the owner or operator of the EGU must install, if not already installed, and properly operate and maintain, by the dates set forth in subsection (a)(2) of this Section, ACI equipment complying with subsections (g), (h), (i), (j), and (k) of this Section, as applicable. |
| |
| 2)
| By the following dates, for the EGUs listed below in subsections (a)(2)(A) and (B), which include hot and cold side ESPs, the owner or operator must install, if not already installed, and begin operating ACI equipment or the Agency must be given written notice that the EGU will be shut down on or before the following dates below: |
| |
| A)
| Fisk 19, Crawford 7, Crawford 8, Waukegan 7, and Waukegan 8 on or before July 1, 2008; and |
| |
| B)
| Powerton 5, Powerton 6, Will County 3, Will County 4, Joliet 6, Joliet 7, and Joliet 8 on or before July 1, 2009. |
| |
| b)
| Notwithstanding subsection (a) of this Section, the following EGUs are not required to install ACI equipment because they will be permanently shut down, as addressed by Section 225.630, by the date specified: |
| |
| 1)
| EGUs that are required to permanently shut down: |
| |
| A)
| On or before December 31, 2007, Waukegan 6; and |
| |
| B)
| On or before December 31, 2010, Will County 1 and Will County 2. |
| |
| 2)
| Any other specified EGU that is permanently shut down by December 31, 2010. |
| |
| c)
| Beginning on January 1, 2015 and continuing thereafter, and measured on a rolling 12-month basis (the initial period is January 1, 2015, through December 31, 2015, and, then, for every 12-month period thereafter), each specified EGU, except Will County 3, shall achieve one of the following emissions standards: |
| |
| 1)
| An emissions standard of 0.0080 lbs mercury/GWh gross electrical output; or |
| |
| 2)
| A minimum 90 percent reduction of input mercury. |
| |
| d)
| Beginning on January 1, 2016, and continuing thereafter, Will County 3 shall achieve the mercury emissions standards of subsection (c) of this Section measured on a rolling 12-month basis (the initial period is January 1, 2016 through December 31, 2016, and, then, for every 12-month period thereafter). |
| |
| e)
| At any time prior to the dates required for compliance in subsections (c) and (d) of this Section, the owner or operator of a specified EGU, upon notice to the Agency, may elect to comply with the emissions standards of subsection (c) of this Section measured on a rolling 12-month basis for one or more EGUs. Once an EGU is subject to the mercury emissions standards of subsection (c) of this Section, it shall not be subject to the requirements of subsections (g), (h), (i), (j) and (k) of this Section. |
| |
| f)
| Compliance with the mercury emissions standards or reduction requirement of this Section must be calculated in accordance with Section 225.230(a) or (b). |
| |
| g)
| For each EGU for which injection of halogenated activated carbon is required by subsection (a)(1) of this Section, the owner or operator of the EGU must inject halogenated activated carbon in an optimum manner, which, except as provided in subsection (h) of this Section, is defined as all of the following: |
| |
| 1)
| The use of an injection system for effective absorption of mercury, considering the configuration of the EGU and its ductwork; |
| |
| 2)
| The injection of halogenated activated carbon manufactured by Alstom, Norit, or Sorbent Technologies, or the injection of any other halogenated activated carbon or sorbent that the owner or operator of the EGU has demonstrated to have similar or better effectiveness for control of mercury emissions; and |
| |
3) The injection of sorbent at the following minimum rates, as applicable:
| A)
| For an EGU firing subbituminous coal, 5.0 lbs per million actual cubic feet or, for any cyclone-fired EGU that will install a scrubber and baghouse by December 31, 2012, and which already meets an emission rate of 0.020 lb mercury/GWh gross electrical output or at least 75 percent reduction of input mercury, 2.5 lbs per million actual cubic feet; |
| |
| B)
| For an EGU firing bituminous coal, 10.0 lbs per million actual cubic feet or, for any cyclone-fired EGU that will install a scrubber and baghouse by December 31, 2012, and which already meets an emission rate of 0.020 lb mercury/GWh gross electrical output or at least 75 percent reduction of input mercury, 5.0 lbs per million actual cubic feet; |
| |
| C)
| For an EGU firing a blend of subbituminous and bituminous coal, a rate that is the weighted average of the above rates specified in subsections (g)(3)(A) and (B), based on the blend of coal being fired; or |
| |
| D)
| A rate or rates set lower by the Agency, in writing, than the rate specified in any of subsection (g)(3)(A), (g)(3)(B), or (g)(3)(C) of this Section on a unit-specific basis, provided that the owner or operator of the EGU has demonstrated that such rate or rates are needed so that carbon injection will not increase particulate matter emissions or opacity so as to threaten noncompliance with applicable requirements for particulate matter or opacity. |
| |
| 4)
| For purposes of subsection (g)(3) of this Section, the flue gas flow rate must be determined for the point sorbent injection; provided that this flow rate may be assumed to be identical to the stack flow rate if the gas temperatures at the point of injection and the stack are normally within 100º F, or the flue gas flow rate may otherwise be calculated from the stack flow rate, corrected for the difference in gas temperatures. |
| |
| h)
| The owner or operator of an EGU that seeks to operate an EGU with an activated carbon injection rate or rates that are set on a unit-specific basis pursuant to subsection (g)(3)(D) of this Section must submit an application to the Agency proposing such rate or rates, and must meet the requirements of subsections (h)(1) and (h)(2) of this Section, subject to the limitations of subsections (h)(3) and (h)(4) of this Section: |
| |
| 1)
| The application must be submitted as an application for a new or revised federally enforceable operation permit for the EGU, and it must include a summary of relevant mercury emissions data for the EGU, the unit-specific injection rate or rates that are proposed, and detailed information to support the proposed injection rate or rates; and |
| |
| 2)
| This application must be submitted no later than the date that activated carbon must first be injected. For example, the owner or operator of an EGU that must inject activated carbon pursuant to subsection (a)(1) of this Section must apply for unit-specific injection rate or rates by July 1, 2008. Thereafter, the owner or operator may supplement its application; and |
| |
| 3)
| Any decision of the Agency denying a permit or granting a permit with conditions that set a lower injection rate or rates may be appealed to the Board pursuant to Section 39 of the Act; and |
| |
| 4)
| The owner or operator of an EGU may operate at the injection rate or rates proposed in its application until a final decision is made on the application including a final decision on any appeal to the Board. |
| |
| i)
| During any evaluation of the effectiveness of a listed sorbent, alternative sorbent, or other technique to control mercury emissions, the owner or operator of an EGU need not comply with the requirements of subsection (g) of this Section for any system needed to carry out the evaluation, as further provided as follows: |
| |
| 1)
| The owner or operator of the EGU must conduct the evaluation in accordance with a formal evaluation program submitted to the Agency at least 30 days prior to commencement of the evaluation; |
| |
| 2)
| The duration and scope of the evaluation may not exceed the duration and scope reasonably needed to complete the desired evaluation of the alternative control techniques, as initially addressed by the owner or operator in a support document submitted with the evaluation program; and |
| |
| 3)
| The owner or operator of the EGU must submit a report to the Agency no later than 30 days after the conclusion of the evaluation that describes the evaluation conducted and which provides the results of the evaluation; and |
| |
| 4)
| If the evaluation of the alternative control techniques shows less effective control of mercury emissions from the EGU than was achieved with the principal control techniques, the owner or operator of the EGU must resume use of the principal control techniques. If the evaluation of the alternative control technique shows comparable effectiveness to the principal control technique, the owner or operator of the EGU may either continue to use the alternative control technique in a manner that is at least as effective as the principal control technique or it may resume use of the principal control technique. If the evaluation of the alternative control technique shows more effective control of mercury emissions than the control technique, the owner or operator of the EGU must continue to use the alternative control technique in a manner that is more effective than the principal control technique, so long as it continues to be subject to this Section 225.615. |
| |
| j)
| In addition to complying with the applicable recordkeeping and monitoring requirements in Sections 225.240 through 225.290, the owner or operator of an EGU that elects to comply with Section 225.230(a) by means of this Subpart F must also comply with the following additional requirements: |
| |
| 1)
| For the first 36 months that injection of sorbent is required, it must maintain records of the usage of sorbent, the exhaust gas flow rate from the EGU, and the sorbent feed rate, in pounds per million actual cubic feet of exhaust gas at the injection point, on a weekly average; |
| |
| 2)
| After the first 36 months that injection of sorbent is required, it must monitor activated sorbent feed rate to the EGU, flue gas temperature at the point of sorbent injection, and exhaust gas flow rate from the EGU, automatically recording this data and the sorbent carbon feed rate, in pounds per million actual cubic feet of exhaust gas at the injection point, on an hourly average; and |
| |
| 3)
| If a blend of bituminous and subbituminous coal is fired in the EGU, it must keep records of the amount of each type of coal burned and the required injection rate for injection of activated carbon on a weekly basis. |
| |
| k)
| In addition to complying with the applicable reporting requirements in Sections 225.240 through 225.290, the owner or operator of an EGU that elects to comply with Section 225.230(a) by means of this Subpart F must also submit quarterly reports for the recordkeeping and monitoring conducted pursuant to subsection (j) of this Section. |
| | |
(Source: Added at 31 Ill. Reg. ____________, effective _____________)
| Section 225.620
| Emissions Standards for NOx and SO2 |
| |
| a)
| Emissions Standards for NOx and Reporting Requirements. |
| |
| 1)
| Beginning with calendar year 2012 and continuing in each calendar year thereafter, the CPS group, which includes all specified EGUs that have not been permanently shut down by December 31 before the applicable calendar year, must comply with a CPS group average annual NOx emissions rate of no more than 0.11 lbs/mmBtu. |
| |
| 2)
| Beginning with ozone season control period 2012 and continuing in each ozone season control period (May 1 through September 30) thereafter, the CPS group, which includes all specified EGUs that have not been permanently shut down by December 31 before the applicable ozone season, must comply with a CPS group average ozone season NOx emissions rate of no more than 0.11 lbs/mmBtu. |
| |
| 3)
| The owner or operator of the specified EGUs in the CPS group must file, not later than one year after startup of any selective SNCR on such EGU, a report with the Agency describing the NOx emissions reductions that the SNCR has been able to achieve. |
| |
| b)
| Emissions Standards for SO2. Beginning in calendar year 2013 and continuing in each calendar year thereafter, the CPS group must comply with the applicable CPS group average annual SO2 emissions rate listed below as follows: |
| |
| year
| lbs/mmBtu |
| |
| 2013
| 0.44 |
| 2014
| 0.41 |
| 2015
| 0.28 |
| 2016
| 0.195 |
| 2017
| 0.15 |
| 2018
| 0.13 |
| 2019
| 0.11 |
| |
| c)
| Compliance with the NOx and SO2 emissions standards must be demonstrated in accordance with Sections 225.310, 225.410, and 225.510. The owner or operator of the specified EGUs must complete the demonstration of compliance pursuant to Section 225.635(c) before March 1 of the following year for annual standards and before November 30 of the particular year for ozone season control periods (May 1 through September 30) standards, by which date a compliance report must be submitted to the Agency. |
| |
| d)
| The CPS group average annual SO2 emission rate, annual NOx emission rate and ozone season NOx emission rates shall be determined as follows: |
| n n
|
| ERavg =
Σ (SO2i or NOxi tons)∕ Σ (HIi)
| |
Where:
| ERavg
| = | average annual or ozone season emission rate in lbs/mmBbtu of all EGUs in the CPS group. | |
| HIi
| = | heat input for the annual or ozone control period of each EGU, in mmBtu. | |
| | SO2i
| | = | actual annual SO2 tons of each EGU in the CPS group. | |
|
| | NOxi | | = | actual annual or ozone season NOx tons of each EGU in the CPS group. |
|
| | n | | = | number of EGUs that are in the CPS group |
| | i
| | = | each EGU in the CPS group. |
| | | | | |
(Source: Added at 31 Ill. Reg. ____________, effective _____________)
Section 225.625 Control Technology Requirements for NOx, SO2, and PM Emissions
| a)
| Control Technology Requirements for NOx and SO2. |
| |
| 1)
| On or before December 31, 2013, the owner or operator must either permanently shut down or install and have operational FGD equipment on Waukegan 7; |
| |
| 2)
| On or before December 31, 2014, the owner or operator must either permanently shut down or install and have operational FGD equipment on Waukegan 8; |
| |
| 3)
| On or before December 31, 2015, the owner or operator must either permanently shut down or install and have operational FGD equipment on Fisk 19; |
| |
| 4)
| If Crawford 7 will be operated after December 31, 2018, and not permanently shut down by this date, the owner or operator must: |
| |
| A)
| On or before December 31, 2015, install and have operational SNCR or equipment capable of delivering essentially equivalent NOx reductions on Crawford 7; and |
| |
| B)
| On or before December 31, 2018, install and have operational FGD equipment on Crawford 7; |
| |
| 5)
| If Crawford 8 will be operated after December 31, 2017 and not permanently shut down by this date, the owner or operator must: |
| |
| A)
| On or before December 31, 2015, install and have operational SNCR or equipment capable of delivering essentially equivalent NOx emissions reductions on Crawford 8; and |
| |
| B)
| On or before December 31, 2017, install and have operational FGD equipment on Crawford 8. |
| |
| b)
| Other Control Technology Requirements for SO2. Owners or operators of specified EGUs must either permanently shut down or install FGD equipment on each specified EGU (except Joliet 5), on or before December 31, 2018, unless an earlier date is specified in subsection (a) of this Section. |
| |
| c)
| Control Technology Requirements for PM. The owner or operator of the two specified EGUs listed below in this subsection that are equipped with a hot-side ESP must replace the hot-side ESP with a cold-side ESP, install an appropriately designed fabric filter, or permanently shut down the EGU by the dates specified below. Hot-side ESP means an ESP on a coal-fired boiler that is installed before the boiler's air-preheater where the operating temperature is typically at least 550º F, as distinguished from a cold-side ESP that is installed after the air pre-heater where the operating temperature is typically no more than 350º F. |
| |
| 1)
| Waukegan 7 on or before December 31, 2013; and |
| |
| 2)
| Will County 3 on or before December 31, 2015. |
| |
| d)
| Beginning on December 31, 2008, and annually thereafter up to and including December 31, 2015, the owner or operator of the Fisk power plant must submit in writing to the Agency a report on any technology or equipment designed to affect air quality that has been considered or explored for the Fisk power plant in the preceding 12 months. This report will not obligate the owner or operator to install any equipment described in the report. |
| |
| e)
| Notwithstanding 35 Ill. Adm. Code 201.146(hhh), until an EGU has complied with the applicable requirements of subsections 225.625(a), (b), and (c), the owner or operator of the EGU must obtain a construction permit for any new or modified air pollution control equipment that it proposes to construct for control of emissions of mercury, NOx, PM, or SO2. |
| |
(Source: Added at 31 Ill. Reg. ____________, effective _____________)
Section 225.630 Permanent Shut Downs
| a)
| The owner or operator of the following EGUs must permanently shut down the EGU by the dates specified: |
| |
| 1)
| Waukegan 6 on or before December 31, 2007; and |
| |
| 2)
| Will County 1 and Will County 2 on or before December 31, 2010. |
| |
| b)
| No later than 8 months before the date that a specified EGU will be permanently shut down, the owner or operator must submit a report to the Agency that includes a description of the actions that have already been taken to allow the shutdown of the EGU and a description of the future actions that must be accomplished to complete the shutdown of the EGU, with the anticipated schedule for those actions and the anticipated date of permanent shutdown of the unit. |
| |
| c)
| No later than six months before a specified EGU will be permanently shut down, the owner or operator shall apply for revisions to the operating permits for the EGU to include provisions that terminate the authorization to operate the unit on that date. |
| |
| d)
| If after applying for or obtaining a construction permit to install required control equipment, the owner or operator decides to permanently shut-down a Specified EGU rather than install the required control technology, the owner or operator must immediately notify the Agency in writing and thereafter submit the information required by subsections (b) and (c) of this Section. |
| |
| e)
| Failure to permanently shut down a specified EGU by the required date shall be considered separate violations of the applicable emissions standards and control technology requirements of this Subpart F for NOx, PM, SO2, and mercury. |
| |
(Source: Added at 31 Ill. Reg. ____________, effective _____________)
| |
| Section 225.635
| Requirements for CAIR SO2, CAIR NOx, and CAIR NOx Ozone Season Allowances |
| |
| a)
| The following requirements apply to the owner, the operator and the designated representative with respect to CAIR SO2, CAIR NOx, and CAIR NOx Ozone Season allowances: |
| |
| 1)
| The owner, operator, and CAIR designated representative of specified EGUs in a CPS group is permitted to sell, trade, or transfer SO2 and NOx emissions allowances of any vintage owned, allocated to, or earned by the specified EGUs (the "CPS allowances") to its affiliated Homer City, Pennsylvania generating station (“Homer City Station”) for as long as the Homer City Station needs the CPS allowances for compliance. |
| |
| 2)
| When and if the Homer City Station no longer requires all of the CPS allowances, the owner, operator, or CAIR designated representative of specified EGUs in CPS group may sell any and all remaining CPS allowances, without restriction, to any person or entity located anywhere, except that the owner or operator may not directly sell, trade, or transfer CPS allowances to a CAIR NOx or CAIR SO2 unit located in Ohio, Indiana, Illinois, Wisconsin, Michigan, Kentucky, Missouri, Iowa, Minnesota, or Texas. |
| |
| 3)
| In no event shall this subsection (a) require or be interpreted to require any restriction whatsoever on the sale, trade, or exchange of the CPS allowances by persons or entities who have acquired the CPS allowances from the owner, operator, or CAIR designated representative of specified EGUs in a CPS group. |
| |
| b)
| The owner, operator, and CAIR designated representative of EGUs in a specified CPS group comprised of is prohibited from purchasing or using CAIR SO2, CAIR NOx, and CAIR NOx Ozone Season allowances for the purposes of meeting the SO2 and NOx emissions standards set forth in Section 225.620. |
| |
| c)
| Before March 1, 2010, and continuing each year thereafter, the CAIR designated representative of the EGUs in a CPS group must submit a report to the Agency that demonstrates compliance with the requirements of this Section 225.635 for the previous calendar year and ozone season control period (May 1 through September 30), and includes identification of any CAIR allowances that have been used for compliance with the CAIR Trading Programs as set forth in Subparts C, D, and E, and any CAIR allowances that were sold, gifted, used, exchanged, or traded. A final report must be submitted to the Agency by August 31 of each year, providing either verification that the actions described in the initial report have taken place, or, if such actions have not taken place, an explanation of the changes that have occurred and the reasons for such changes. |
| |
(Source: Added at 31 Ill. Reg. ____________, effective _____________)
Section 225.640 Clean Air Act Requirements
The SO2 emissions rates set forth in this Subpart F shall be deemed to be best available retrofit technology (“BART”) under the Visibility Protection provisions of the CAA (42 USC 7491), reasonably available control technology (“RACT”) and reasonably available control measures (“RACM”) for achieving fine particulate matter (“PM2.5”) requirements under NAAQS in effect on August 31, 2007, as required by the CAA (42 USC 7502). The Agency may use the SO2 and NOx emissions reductions required under this Subpart F in developing attainment demonstrations and demonstrating reasonable further progress for PM2.5 and 8 hour ozone standards, as required under the CAA. Furthermore, in developing rules, regulations, or State Implementation Plans designed to comply with PM2.5 and 8 hour ozone NAAQS, the Agency, taking into account all emission reduction efforts and other appropriate factors, will use best efforts to seek SO2 and NOx emissions rates from other EGUs that are equal to or less than the rates applicable to the CPS group and will seek SO2 and NOx reductions from other sources before seeking additional emissions reductions from any EGU in the CPS group.
(Source: Added at 31 Ill. Reg. ____________, effective _____________)
| 225.APPENDIX A
| Specified EGUs for Purposes of Subpart F (Midwest Generation’s Coal-Fired Boilers as of July 1, 2006) |
| |
Plant Permit Boiler Permit designation Subpart F
Number Designation
Crawford 031600AIN 7 Unit 7 Boiler BLR1 Crawford 7
8 Unit 8 Boiler BLR2 Crawford 8
Fisk 031600AMI 19 Unit 19 Boiler BLR19 Fisk 19
Joliet 197809AAO 71 Unit 7 Boiler BLR71 Joliet 7
72 Unit 7 Boiler BLR72 Joliet 7
81 Unit 8 Boiler BLR81 Joliet 8
82 Unit 8 Boiler BLR82 Joliet 8
5 Unit 6 Boiler BLR5 Joliet 6
Powerton 179801AAA 51 Unit 5 Boiler BLR 51 Powerton 5
52 Unit 5 Boiler BLR 52 Powerton 5
61 Unit 6 Boiler BLR 61 Powerton 6
62 Unit 6 Boiler BLR 62 Powerton 6
Waukegan 097190AAC 17 Unit 6 Boiler BLR17 Waukegan 6
7 Unit 7 Boiler BLR7 Waukegan 7
8 Unit 8 Boiler BLR8 Waukegan 8
Will County 197810AAK 1 Unit 1 Boiler BLR1 Will County 1
2 Unit 2 Boiler BLR2 Will County 2
3 Unit 3 Boiler BLR3 Will County 3
4 Unit 4 Boiler BLR4 Will County 4
(Source: Added at 31 Ill. Reg. ____________, effective _____________)
IT IS SO ORDERED.
I, John Therriault, Assistant Clerk of the Illinois Pollution Control Board, certify that the Board adopted the above opinion and order on July 26, 2007, by a vote of 4-0.
__________________________________
John Therriault, Assistant Clerk
Illinois Pollution Control Board
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