9 PROPOSED ADMINISTRATIVE RULES

DE P ARTMEN T OF EN VIRONMEN TAL QUALIT Y AIR QUALIT Y DIVISION

AIR P OLLUTION CONTROL

Filed with th e Secretar y of Stat e on

These ru les tak e effect 7 days after filing with th e Secretar y of Stat e

(By auth ority con ferr ed on th e director of th e dep artm ent of environm enta l qua lity by sections 5503 an d 5512 of 1994 PA 451 an d Execut ive Reorgan izat ion Order No. 1995 -18, MCL 324 .5503 , 324 .5512 , an d 324 .99903 )

R 336 .1801 of th e Michigan Administrat ive Code is am ended an d R 336 .1802 to R 336 .1818 ar e added to read as follows :

P ART 8. EMISS ION LIMITATIO NS AND P ROHIBITIO NS --OXIDES OF NITROGEN

R 336 .1801 Em issio n of oxides of n itrog en from NON-SIP CALL stationa ry sou rces .

Rule 801 . (1) As used in th is ru le:

(a) ) "CAPACIT Y FACTOR " MEANS EITHE R OF THE FOLLOWI NG:

(i) THE RATIO OF A UNI T'S ACTUAL ANNU AL ELECTRIC OUTPU T, EXPRESS ED IN MEGAWATT HOUR, TO THE UNI T'S NAMEP LATE CAPACIT Y TIM ES 8,760 HOURS.

(ii) THE RATIO OF A UNI T'S ANNU AL HE AT IN PU T, EXPRESSED IN MILLIO N BRITIS H THE RMAL UNI TS OR EQUI VALEN T UNI TS OF MEASUR E, TO THE UNI T'S MAXIMUM DESIGN HE AT IN PU T, EXPRESSED IN MILLIO N BRITIS H THE RMAL UNI TS PE R HOUR OR EQUI VALEN T UNI TS OF MEASUR E, TIM ES 8,760 HOURS.

(b) “Fossil fuel-fir ed” mean s th e com bustion of foss il fuel, alone or in com binat ion with an y oth er fuel, where th e foss il fuel actua lly com busted com prises more than 50% of th e FUE L MASS OR annua l heat input on a British th erma l un it basis. COKE OVEN GAS IS A FOSSIL FUE L.

(c) "LOW-NOX BURNE RS" MEANS 1 OF SEVERAL DEVELOPING COMB US TIO N TECHN OLOGI ES USE D TO MINIMIZE THE FORMATIO N OF EMISSIO NS OF NITROG EN OXIDES. AS APP LIC ABLE TO CEMEN T KIL NS , LOW- NOX BURNE RS MEANS A TYPE OF CEMEN T KIL N BURNE R SYSTEM DESIGN ED TO MINI MIZE

NOX FORMATIO N BY CONTROLLI NG FLAME TURBULEN CE, DELAYING FUE L/AIR MIXING , AND ESTABLIS HING FUE L-RIC H ZONES FOR INITI AL COMB US TING, THAT FOR FIRING OF SOLID FUE L IN THE BURNIN G EN D ZONE OF A KIL N'S MAIN BURNE R INCLUD ES AN INDIR ECT FIRING SYSTEM OR COM PARABLE TECHN IQU E FOR THE MAIN BURNE R IN THE BURNIN G EN D ZONE OF THE KIL N TO MINI MIZE THE AMOUN T OF PRIM ARY AIR SU PP LIED THROUGH THE BURNE R. IN AN INDIR ECT FIRING SYSTEM, 1 AIR STREAM IS USE D TO CONVEY PU LVERIZED FUE L FROM THE GRI NDING EQUIP MEN T AND AT LEAST 1 OR MORE OTHE R AIR STREAMS ARE USE D TO SU PP LY PRIM ARY AIR TO THE BURNIN G EN D ZONE KIL N BURNE R OF THE KIL N WITH THE PU LVERIZED FUE L, WITH INT ERMEDIATE STOR AGE OF THE FUE L, AND NE CESSARY SAFE TY AND EXPLOSIO N PREVEN TIO N SYSTEMS ASSOCI ATED WITH THE INT ERMEDIATE STOR AGE OF FUE L.

(d) "MID -KIL N SYSTEM FIRING " MEANS THE SECONDARY FIRING IN A KIL N SYSTEM BY IN J ECTI NG SOLID FUE L AT AN INT ERMEDIATE POINT IN THE KIL N SYSTEM USIN G A SPE CIALLY DESIGN ED HE AT IN J ECTIO N MECHANIS M FOR THE PU RPOSE OF DECREASING NOX EMISSIO NS THROUGH COAL BURNIN G PART OF THE FUE L AT LOWER TEMPE RATURES AND REDUCING CONDITIO NS AT THE FUE L IN J ECTIO N POINT THAT MAY DESTRO Y SOME OF THE NOX.

(e) “NON-SIP CALL SOURC E” MEANS ANY STATIO NARY SOURC E OF OXIDES OF

NI TROG EN EMISSIO NS THAT IS NOT DEF IN ED AS AN OXIDES OF NITROG EN BUDGET SOURC E IN R 336 .1303 .

(f) “Ozone CONTROL PE RIOD ” mean s th e PE RIOD OF MAY 31, 2004 , THROUGH SEP TEMBER 30 , 2004 , AND THE PE RIOD OF MAY 1 THROUGH SEP TEMBER 30 EACH SUBS EQUEN T YEAR.

(g) "PE AKING UNI T" MEANS A UNI T THAT HAS AN AVERAGE CAPACIT Y FACTOR OF NOT MORE THAN 10 % DURING THE PREVIOUS 3 CALEN DAR YEARS AND A CAPACIT Y FACTOR OF NOT MORE THAN 20 % IN EACH OF THOSE CALEN DAR YEARS.

(h) “Pr ocess heat er” mean s an y com bustion equipment which is fired by a liquid fuel or a gaseous fuel, or both , an d which is used to tran sfer heat from th e com bustion gases to a pr ocess fluid, superh eat ed steam , or wat er.

(i) “Un it” mean s a foss il fuel-fir ed com bustion device.

(j) “Ut ilit y system” mean s all int erconn ected un it s an d generat ors WHICH ARE SUB J ECT TO SUBRUL E (2) OF THIS RULE AND WH ICH ARE operat ed by th e sam e ut ility operat ing com pan y or by comm on ownership an d contr ol.

(2) An owner or operat or of a foss il fuel-fir ed, electr icity-generat ing ut ility un it which ha s th e potent ia l to emit more than 25 tons each ozone CONTROL PE RIOD of oxides of nitr ogen an d which serves a generat or that ha s a nam eplat e capacity of 25 megawatt s or more sha ll comply with th e emission limits dur ing th e ozone CONTROL PE RIOD as follows:

(a) By MAY 31, 2004 , meet th e least str ingent of a ut ility system-wide avera ge oxides of nitr ogen emission rat e of 0.25 poun ds per million British th erma l un it s heat input or an emission rat e based on a 65% reduction of oxides of nitr ogen from 1990 level s.

(b) The DATE listed in SUBDI VISION (a) of th is subru le ma y be extended by up to 1 year if an owner or operat or mak es an a ccep ta ble demonstrat ion to th e dep artm ent that th e additiona l t ime is necess ar y to avoid disru ption of th e energy supply in th e stat e or if th e additiona l t ime is necess ar y to com ply with th e provisions of th is ru le.

(3) An owner or operat or sha ll demonstrat e com plian ce with th e emission limits in subru le (2) of th is ru le as follows :

(a) To demonstrat e com plian ce with a ut ility system-wide avera ge emission rat e, th e owner or operat or sha ll show that th e sum of th e ma ss emissions from all un it s owned or operat ed by a ut ility that is subject to subru le (2) of th is ru le which occurr ed dur ing th e ozone CONTROL PE RIOD , divided by th e sum of th e heat input from all un it s owned or operat ed by a ut ilit y that is subject to subru le (2) of th is ru le which occurr ed dur ing th e ozone CONTROL PE RIOD is less than or equa l to th e limits in subru le (2) OF THIS RULE.

(b) To demonstrat e com plian ce with th e percent reduction requirement s of subru le (2) of th is ru le, th e owner or operat or sha ll provide calculat ions showing that th e ut ility system avera ge emission rat e dur ing each complian ce ozone CONTROL PE RIOD ha s been reduced below th e 1990 ozone CONTROL PE RIOD avera ge emission rat e by th e applicable percent reduction listed in subru le (2) of th is ru le. The 1990 ozone CONTROL PE RIOD avera ge emission rat e is th e sum of th e ma ss emissions from all un it s owned or operat ed by a ut ilit y that is subject to subru le (2) of th is ru le which occurr ed dur ing th e 1990 ozone CONTROL PE RIOD divided by th e sum of th e heat input from all un it s owned or operat ed by a ut ilit y that is subject to subru le (2) of th is ru le which occurr ed dur ing th e 1990 ozone CONTROL PE RIOD .

(a) ) An owner or operat or of a foss il fuel-fir ed, electr icity-generat ing ut ility un it which serves a generat or that ha s a nam eplat e capacity of less than 25 megawatt s which ha s a ma ximum rat ed heat input capacity of more than 250 million British th erma l un it s per hour sha ll com ply with th e appropriat e oxides of nitr ogen emission limit in ta ble 81 of th is ru le.

(b) An owner or operat or of a foss il fuel-fir ed boiler or pr ocess heat er sha ll meet th e emission limits conta ined in ta ble 81 of th is ru le.

(c) An owner or operat or of a gas-fir ed boiler or pr ocess heat er that fires gaseous fuel which conta ins more than 50% hydrogen by volum e sha ll comply with an oxides of nitr ogen emission limit of 0.25 poun ds per million Btu heat input .

(d) An owner or operat or of a stat ionar y int erna l com bustion engine which is subject to th e provisions of th is ru le an d which ha s a ma ximum rat ed heat input capacity that is th e heat input at 80 degrees Fahr enh eit at sea level an d tak es int o a ccount inlet an d exhau st losses sha ll com ply with th e followin g oxides of nitr ogen emission limits, as applicable:

(i) For a natura l gas-fir ed stat ionar y int erna l com bustion engine - 14 gram s of oxides of nitr ogen per brak e horsepower hour at rat ed out put .

(ii) For a diesel-fir ed stat ionar y int erna l com bustion engine - 10 gram s of oxides of nitr ogen per brak e horsepower hour at rat ed out put .

(e) An owner or operat or of a cement kiln that is subject to th e provisions of th is ru le sha ll reduce kiln oxides of nitr ogen emissions by an y of th e followin g meth ods:

(i) Low oxides of nitr ogen burn ers.

(ii) Mid-kiln SYSTEM fir ing.

(iii) A 25% rat e-based reduction of oxides of nitr ogen from 1995 level s. Complian ce with th is para gra ph sha ll be based on calculat ions showing that th e emission rat e, on a poun ds of oxides of nitr ogen per ton of clink er produced basis, dur ing each com plian ce ozone CONTROL PE RIOD , ha s been reduced below th e 1995 ozone CONTROL PE RIOD emission rat e by25 %.

(f) An owner or operat or of a stat ionar y gas tur bine which is subject to th e provisions of th is ru le an d which ha s a ma ximum rat ed heat input capacity that is th e heat input at 80 degrees Fahr enh eit at sea level an d tak es int o a ccount inlet an d exhau st losses sha ll com ply with an emission limit of 75 part s per million, dry volum e, corr ected to 15% oxygen, at rat ed capacity. The provisions of th is ru le do not apply to a stat ionar y gas tur bine that is subject to a new sour ce per forman ce stan dar d conta ined in 40 C.F.R. PART 60, subpart gg (2001 ), WHICH IS ADOPTED BY REFE REN CE IN SUBRUL E (7) OF THIS RULE.

(g) An owner or operat or of an emission un it which is subject to th is ru le an d which is not oth erwise subject to th e provisions of subdivisi ons (a) to (f) of th is subru le sha ll submit a proposal for oxides of nitr ogen contr ol by NOVEMBER 17, 2000 . An owner or operat or sha ll implement th e contr ol program by MAY 31 , 2004 , or by an alternat e dat e approved by th e dep artm ent . The owner or operat or SHALL obta in dep artm ent approval of th e proposed contr ol program . The proposal for oxides of nitr ogen contr ol sha ll include all of th e followin g in format ion:

(i) A list ing of reasona bly available oxides of nitr ogen contr ol techn ologies, including th e cost s of insta llat ion an d operat ion, COST OF CONTROL PE R TON OF OXIDES OF NI TROG EN REDUCED, an d th e pr oject ed effect iveness of th e proposed contr ol techn ologies.

(ii) The techn ology selected for contr olling oxides of nitr ogen emissions from th e emission un it , considering techn ological an d economic feasibili ty.

(iii) A proposal for testing, monitoring, an d report ing oxides of nitr ogen emissions.

(h) The com plian ce dat e listed in th is subru le ma y be extended by up to 1 year if an owner or operat or mak es an a ccep ta ble demonstrat ion to th e dep artm ent that th e additiona l t ime is necess ar y to com ply with th e provisions of th is ru le. THE OWNE R OR OPE RATOR OF A UNI T SUB J ECT TO SUBRUL ES (2) AND 4(A) TO (F) OF THIS RULE MAY REQUES T AN ALTERNATE EMISSIO N LIMIT OR CONTROL REQUI REMEN T IF THE RE IS AN ACCEP TABLE DEMONS TRATIO N MADE TO THE DEP ARTM EN T THAT COM PLIANCE WITH THE LIMITS IN TABLE 81, OR OTHE R LIMITS OR CONTROL REQUI REMEN TS, IS NOT REASON ABLE. THE REQUES T FOR AN ALTERNATE EMISSIO N LIMIT OR CONTROL REQUI REMEN T SHALL BE SUBMITT ED TO THE DEP ARTMEN T BY APRIL 1, 2002 , AND SHALL INCLUD E ALL OF THE IN FORMATIO N LIST ED IN SUBDI VISION (G)(I) TO (III ) OF THIS SUBRUL E.

(5) The meth od for determ ining com plian ce with th e emission limits in subru le (4) of th is ru le is as follows :

(a) If th e emission limit is in th e form of poun ds of oxides of nitr ogen per million British th erma l un it , th en th e un it is in com plian ce if th e sum of th e ma ss emissions from th e un it

that occurr ed dur ing th e ozone CONTROL PE RIOD , divided by th e sum of th e heat input from th e un it that occurr ed dur ing th e ozone CONTROL PE RIOD , is less than or equa l to th e limit in subru le (4) of th is ru le.

(b) For an emission un it not subject to subdivisi on (a) of th is subru le, th e meth od for determ ining com plian ce sha ll be a meth od a ccep ta ble to th e dep artm ent .

(6) An owner or operat or of a sour ce of oxides of nitr ogen that is subject to th e provisions of th is ru le ma y part icipat e in Michigan ’s emission tra ding program , being R 336 . 2201 to R 336 .2218 .

(7) The owner or operat or of an emission un it subject to subru le (2) of th is ru le sha ll measur e oxides of nitr ogen emissions with a cont inu ous emission monitoring system; an a lt ernat e meth od as des cribed in 40 C.F.R. PARTS 60 or 75 AND ACCEP TABLE TO THE DEP ARTMEN T; or a meth od curr ent ly in use an d accepta ble to th e dep artm ent , including meth ods conta ined in existing perm it con ditions. The provisions of 40 C.F.R. PARTS 60 an d 75 (2001 ) ar e adopted by reference in th ese ru les. Copies of th e regulat ions ma y be inspe cted at th e Lan sing office of th e air qua lity division of th e dep artm ent of environm enta l qua lity. Copies of th e regulat ions ma y be obta ined from th e Dep artm ent of En vironm enta l Qua lit y, Air Qua lity Divisi on, 106 West Allegan STREE T, P.O. Box 30260 , Lan sing, Michigan 48909 -7760 , or from th e Superint endent of Docum ent s, Governm ent Pr int ing Office, P.O. Box 371954 , Pitt sbur gh, Penn sylvan ia 15250 -7954 , at a cost at th e t ime of adoption of th ese ru les of $66 .00 FOR PART 60 AND $47 .00 FOR PART 75; OR ON THE UNI TED STATES GOVERNMEN T PRINTING OFF ICE INT ERNE T WEB SIT E AT WWW.ACCESS.GPO.GOV.

(8) The owner or operat or of a boiler, pr ocess heat er, stat ionar y int erna l com bustion engine, stat ionar y gas tur bine, cement kiln, or an y oth er stat ionar y emission un it that is subject to th e provisions of subru le (4) of th is ru le sha ll measur e oxides of nitr ogen emissions by an y of th e followin g:

(a) Per forman ce tests described in subru le (9) of th is ru le.

(b) Thr ough th e use of a cont inu ous emission monitor in a ccor dan ce with th e provisions of subru le (11) of th is ru le.

(9) An owner or operat or of an emission un it that measur es oxides of nitr ogen emissions by per forman ce tests as specified in subru le (8) of th is ru le sha ll do all of th e followin g:

(a) Dur ing th e ozone CONTROL PE RIOD , con duct an initial per forman ce test not lat er than 180 days after th e com plian ce deadline. For an emission un it that is not in service on or after th e com plian ce deadline, th e owner or operat or sha ll con duct an initial per forman ce test dur ing th e next ozone CONTROL PE RIOD in which th e emission un it is operat ing.

(b) Aft er th e initial per forman ce test, con duct a com plian ce per forman ce test each ozone CONTROL PE RIOD or according to th e following schedule:

(i) After 2 consecut ive ozone CONTROL PE RIODS in which th e emission un it demonstrat es com plian ce, an owner or operat or sha ll con duct per forman ce tests at least once every 2 year s dur ing th e ozone CONTROL PE RIOD .

(ii) Aft er a tota l of 4 con secut ive ozone CONTROL PE RIODS in which th e emission un it ha s rema ined in com plian ce, an owner or operat or sha ll con duct per forman ce tests at least once every 5 year s dur ing th e ozone CONTROL PE RIOD .

(c) If an emission un it is NOT in com plian ce at th e end of an ozone CONTROL PE RIOD , THEN th e owner or operat or sha ll con duct a com plian ce per forman ce test each ozone CONTROL PE RIOD , but can again elect to use th e alternat ive schedule spe cified in SUBRUL E 9(b) of th is RULE .

(d) An owner or operat or sha ll submit 2 COP IE S of each com plian ce per forman ce test to th e dep artm ent with in 60 days OF COMPLETIO N OF THE TESTING . THE TEST RESULTS SHALL BE PRESEN TED AND INCLUD E DATA AS REQUES TED IN THE DEP ARTMEN T FORMAT FOR SUBMITT AL OF SOURC E EMISSIO N TEST PLANS AND REP ORTS . ALL PE RFORMANCE TEST REP ORTS SHALL BE KEP T ON FILE AT THE PLANT AND MADE AVAILABLE TO THE DEP ARTM EN T UP ON REQUES T.

(11) owner or operat or of an emission un it that measur es oxides of nitr ogen emissions by a cont inu ous emission monitoring system or an alternat e meth od, as specified in subru le (7) or (8) of th is ru le, sha ll do eith er of th e followin g:

(a) Use procedur es set forth in 40 C.F.R., PART 60, SUB PART A AND APPEN DIX B, AND COMPLY WITH THE QUALIT Y ASSUR ANCE PROCEDURES IN APPEN DIX F, OR 40 C.F.R., PART 75 , AND ASSOCI ATED APPEN DIC ES, AS APP LIC ABLE AND ACCEP TABLE TO THE DEP ARTM EN T. TITL E 40 C.F.R., PARTS 60 AND 75 , ARE ADOPTED BY REFE REN CE IN SUBRUL E (7) OF THIS RULE.

(b) An owner or operat or of an emission un it who uses a cont inu ous emission monitoring system to demonstrat e com plian ce with th is ru le an d who ha s already insta lled a cont inu ous emission monitoring system for oxides of nitr ogen pur suant to oth er applicable fede ra l, stat e, or loca l ru les sha ll meet th e insta llat ion, testing, operat ion, calibrat ion, an d report ing requirement s specified by fede ra l, stat e, or loca l ru les.

(12) The owner or operat or of an emission un it that is subject to th is ru le sha ll submit a summar y report , in an a ccep ta ble format , to th e dep artm ent with in 60 days after th e end of each ozone CONTROL PE RIOD . The report sha ll include all of th e following informat ion: (a) The DATE, TIM E, ma gnitu de of emissions, an d emission rat es where applicable, of th e specified emission un it or ut ility system.

(b) If emissions or emission rat es exceed th e emissions or rat es allowed for in th e ozone CONTROL PE RIOD by th e applicable emission limit, th e cau se, if kn own, an d an y corr ective action tak en.

(d) For cont inu ous emission monitoring systems, system per forman ce in format ion, including th e dat e, t ime, durat ion, cau se, an d corr ective action for monitor outa ges. If cont inu ous emission monitoring system downt ime did not occur dur ing monitor outa ges, THEN docum entat ion that downt ime did not occur SHALL BE PROVIDED.

(13) Table 81 reads as follows :

Table 81

Boilers an d pr ocess heat ers with heat input capacity of 250 million Btu or more oxides of nitr ogen (NOx) emission limitat ions (poun ds NOx per million Btu of heat input avera ged over th e ozone CONTROL PE RIOD )
Fu el type	Em ission limit
Natura l gas	0.20
Distillat e oil	0.30
Resid ua l oil	0.40
Coal (1) Coal spreader stoker (2) Pu lverized coa l fired	0.40 0.40
Gas (oth er than natura l gas)1	0.25
For un it s operat ing with a com binat ion of gas, oil, or coa l, a var iable emission limit calculat ed as th e heat input weight ed avera ge of th e applicable emission limits sha ll be used. The emission limit sha ll be determ ined as follows : Em ission limit = a(0.20) + b(applicable oil limit) + c(a pplicable coa l limit) + d(0.25) Where: a = Is th e percenta ge of tota l heat input from natura l gas b = Is th e percenta ge of tota l heat input from oil c = Is th e percenta ge of tota l heat input from coa l d = Is th e percenta ge of tota l heat input from gas (oth er than natura l gas)

1This ma y include a mixtur e of gases . In th is case, natura l gas ma y be part of th e mixtur e.

(14) The provisions of th is ru le do not apply to THE FOLLOWI NG emission un it or un it s:

(a) A UNI T THAT IS subject to oxides of nitr ogen stan dar ds, which ha ve been promu lgat ed in a fede ra l implementat ion plan un der section 110 (c) of th e clean air act or required un der section 126 of th e clean air act.

(b) A UNI T THAT IS SUB J ECT TO ANY OTHE R RULE INCLUD ED IN THIS PART.

(c) A PE AKING UNI T. THE OWNE R OR OPE RATOR SHALL RETAIN RECORDS OF CAPACIT Y FOR A PE RIOD OF 5 YEARS DEMONS TRATING THAT THE UNI T MEE TS THE DEF INITION OF A PE AKING UNI T. THE UNI T SHALL BECOME SUB J ECT TO THE PROVISIONS OF THIS RULE ON J ANU ARY 1 OF THE YEAR FOLLOWI NG FAILUR E TO MEE T THE PE AKING UNI T DEF INITION .

R 336 .1802 APP LICABILIT Y UNDER OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 802 . (1) THIS RULE ESTABLIS HE S AN OXIDES OF NITROG EN EMISSIO NS BUDGET AND OXIDES OF NI TROG EN TRADING PROGR AM FOR ELECTRICIT Y- GENE RATING UNI TS AND LARGE AFFE CTED UNI TS AS DESCRIB ED IN THE SE RULES. THE FOLLOWI NG UNI TS IN THE MIC HIGAN FIN E GRID ZONE SHALL BE OXIDES OF NITROG EN BUDGET UNI TS, AND ANY SOURC E THAT INCLUD ES 1 OR MORE UNI TS SHALL BE AN OXIDES OF NI TROG EN BUDGET SOURC E AND SHALL BE SUB J ECT TO THE REQUI REMEN TS OF THIS RULE:

(a) ) AN ELECTRICIT Y-GENE RATING UNI T AS DEF IN ED IN R 336 .1803 .

(b) A LARGE AFFE CTED UNI T AS DEF IN ED IN R 336 .1803 .

(2) A UNI T DESCRIB ED IN SUBRUL E (1) OF THIS RULE SHALL NOT BE AN OXIDES OF NI TROG EN BUDGET UNI T, IF THE UNI T HAS A FE DERALLY ENF ORCEABLE PE RMIT THAT MEE TS THE REQUI REMEN TS OF SUBDI VISIONS (A) THROUGH (C) OF THIS SUBRUL E:

(a) ) THE FE DERALLY ENF ORC EABLE PE RMIT INCLUD ES TERMS AND CONDITIO NS THAT RESTRICT THE UNI T TO BURNIN G ONLY NATURAL GAS OR FUE L OIL DURING THE OZONE CONTROL PE RIOD IN 2004 OR THE FIRST YEAR OF OPE RATIO N FOR THE SOURC E AND EACH OZONE CONTROL PE RIOD THE RE AF TE R.

(b) THE FE DERALLY ENF ORC EABLE PE RMIT INCLUD ES TERMS AND CONDITIO NS THAT RESTRICT THE UNI T’S OPE RATING HOURS DURING EACH OZONE CONTROL PE RIOD TO THE NU MBER OF HOURS, DETERMI NE D IN ACCORD ANCE WITH SUBDI VISION (C)(II) AND (III ), THAT LIMITS THE UNI T’S POTEN TIAL OXIDES OF NITROG EN MASS EMISSIO NS FOR THE OZONE CONTROL PE RIOD TO 25 TONS OR LESS.

(i) RESTRICT THE UNI T TO BURNIN G ONLY NATURAL GAS OR FUE L OIL DURING AN OZONE CONTROL PE RIOD IN 2004 OR LATER AND EACH OZONE CONTROL PE RIOD THE REAF TE R.

(ii) RESTRICT 1 OF THE FOLLOWI NG:

(A) THE UNI T’S OPE RATING HOURS TO THE NU MBER CALCULATED BY DIVIDING 25 TONS OF POTEN TIAL OXIDES OF NITROG EN MASS EMISSIO NS BY THE UNI T’S MAXIMUM POTEN TIAL HOURLY OXIDES OF NITROG EN MASS EMISSIO NS.

(B) THE AMOUN T OF FUE L THAT CAN BE USE D BASED ON TOTAL HE AT IN PU T BY DIVIDING 25 TONS BY THE OXIDES OF NITROG EN MASS EMISSIO N RATE DETERMI NE D IN PARAGRAPH (III )(A) OF THIS SUBDI VISION .

(C) THE MASS EMISSIO NS TO 25 TONS OF OXIDES OF NITROG EN AS MEASUR ED BY A CERTI FIED CONTINU OUS EMISSIO N MONI TORI NG SYSTEM.

(iii) REQUI RE THAT THE UNI T’S POTEN TIAL OXIDES OF NI TROG EN MASS EMISSIO NS BE CALCULATED AS FOLLOWS :

(A) SELECT 1 OF THE FOLLOWI NG:

(1) THE DEF AULT OXIDES OF NITROG EN EMISSIO N RATE IN 40 C.F.R. §75 .19 , TABLE 2, THAT WOULD OTHE RWIS E BE APP LIC ABLE ASSUMING THAT THE UNI T BURNS ONLY THE TYPE OF FUE L; FOR EXAMPLE, ONLY NATURAL GAS OR ONLY FUE L OIL THAT HAS THE HIGHE ST DEF AULT OXIDES OF NITROG EN EMISSIO N FACTOR OF ANY TYPE OF FUE L THAT THE UNI T IS ALLOW ED TO BURN UN DER THE FUE L USE RESTRICTION IN PARAGRAPH (I) OF THIS SUBDI VISION . TITL E 40 C.F.R., PART 75 , IS ADOPTED BY REFE REN CE IN R 336 .1801 .

(2) THE OXIDES OF NI TROG EN EMISSIO N RATE LIMIT ESTABLIS HE D BY A FE DE RALLY ENF ORC E ABLE PE RMIT .

(3) THE OXIDES OF NITROG EN EMISSIO N RATE MEASUR ED BY A CONTINU OUS EMISSIO N MONI TOR.

(4) THE MAXIMUM OXIDES OF NI TROG EN EMISSIO N RATE ESTABLIS HE D BY EMISSIO N TESTING USIN G A METHOD ACCEP TABLE TO THE DEP ARTMEN T.

(B) MULTI PLY THE OXIDES OF NI TROG EN EMISSIO N RATE UN DER SUB PARAGRAPH (A) OF THIS PARAGRAPH BY THE UNI T’S MAXIMUM RATED HOURLY HE AT IN PU T. THE OWNE R OR OPE RATOR OF THE UNI T MAY PE TITIO N THE DEP ARTM EN T TO USE A LOWER VALUE FOR THE UNI T’S MAXIMUM RATED HOURLY HE AT IN PU T THAN THE VALUE AS DEF IN ED IN 40 C.F.R. §96 .2, WHICH IS ADOPTED BY REFE REN CE IN R 336 .1803 . THE DEP ARTM EN T MAY APP ROVE THE LOWER VALUE IF THE OWNE R OR OPE RATOR DEMONS TRATES THAT THE MAXIMUM HOURLY HE AT IN PU T SPE CIFIED BY THE MANUF ACTURER OR THE HIGHE ST OBS ERVED HOURLY HE AT IN PU T, OR BOTH, ARE NOT REP RESEN TATIVE, AND THAT THE LOWER VALUE IS REP RESEN TATIVE OF THE UNI T’S CURREN T CAPABILITI ES BECAUSE MODI FICATIO NS HAVE BEEN MADE TO THE UNI T LIMITI NG ITS CAPACIT Y PE RMANEN TLY.

(iv) REQUI RE THAT THE OWNE R OR OPE RATOR OF THE UNI T SHALL RETAIN RECORDS , ON SIT E AT THE SOURC E THAT INCLUD ES THE UNI T FOR A PE RIOD OF 5 YEARS, DEMONS TRATING THAT THE OPE RATING HOURS RESTRICTION , THE FUE L USE RESTRICTION , AND THE OTHE R REQUI REMEN TS OF THE PE RMIT RE LATE D TO THE SE RE STRICTIONS WE RE ME T.

(v) REQUI RE THAT THE OWNE R OR OPE RATOR OF THE UNI T SHALL REP ORT THE UNI T’S HOURS OF OPE RATIO N, HE AT IN PU T, OR CONTINU OUS EMISSIO N MONITORI NG SYSTEMS MEASUR ED OXIDES OF NITROG EN EMISSIO NS TO THE DEP ARTM EN T BY NOVEMBER 1 OF EACH YEAR FOR WHICH THE UNI T IS SUB J ECT TO THE FE DERALLY ENF ORCEABLE PE RMIT . IF THE HOURS OF OPE RATIO N ARE REQUI RED TO BE REP ORTED, THE OWNE R OR OPE RATOR SHALL TREAT ANY PARTI AL HOUR OF OPE RATIO N AS A WHOLE HOUR OF OPE RATIO N. THE UNI T SHALL BE SUB J ECT ONLY TO THE REQUI REMEN TS OF THIS SUBRUL E, THROUGHOUT THE EFFE CTI VE PE RIOD OF THE FE DERALLY ENF ORC EABLE PE RMIT UN DER SUBDI VISION (a ) OF THIS SUBRUL E.

(d) WITHIN 30 DAYS AFTER A FIN AL DECISIO N, THE DEP ARTMEN T SHALL NOTI FY THE UNI TED STATES EN VIRONM EN TAL PROT ECTIO N AGEN CY, IN WRITING , WHEN EITHE R OF THE FOLLOWI NG PROVISIONS APP LIES TO A UNI T UN DER SUBRUL E (1) OF THIS RULE:

(i) THE UNI T IS ISSU ED A FE DERALLY ENF ORC EABLE PE RMIT UN DER SUBRUL E (2) OF THIS RULE.

(ii) ANY OF THE FOLLOWI NG PROVISIONS APP LY TO A UNI T’S FE DERALLY ENF ORCEABLE PE RMIT ISSU ED BY THE DEP ARTMEN T UN DER SUBRUL E (2) OF THIS RULE:

(A) THE PE RMIT IS REVISED TO REMOVE ANY RESTRICTION .

(B) THE PE RMIT INCLUD ES ANY RESTRICTION THAT IS NO LONGER APP LIC ABLE .

(e) A UNI T DESCRIB ED UN DER THIS SUBRUL E SHALL BE AN OXIDES OF NI TROG EN BUDGET UNI T, SUB J ECT TO THE REQUI REMEN TS OF THIS RULE IF EITHE R OF THE FOLLOWI NG OCCURS FOR ANY OZONE CONTROL PE RIOD :

(i) THE FUE L USE RESTRICTION UN DER SUBDI VISION (C)(I) OF THIS SUBRUL E OR THE OPE RATING HOURS OR EMISSIO NS RESTRICTION UN DER SUBDI VISION (C)(II) AND (II I) OF THIS SUBRUL E IS REMOVED FROM THE UNI T’S FE DERALLY ENF ORCEABLE PE RMIT OR OTHE RWIS E BECOM ES NO LONGER APP LIC ABLE .

(ii) THE UNI T DOES NOT COMPLY WITH THE FUE L USE RESTRICTION UN DER SUBDI VISION (C)(I) OF THIS SUBRUL E OR THE OPE RATING HOURS OR EMISSIO NS RESTRICTION UN DER SUBDI VISION (C)(II) AND (III ) OF THIS SUBRUL E. THE UNI T SHALL BE TREATED AS COMM EN CING OPE RATIO N AND, FOR A UNI T UN DER SUBRUL E (1)(A) OF THIS RULE, COMM EN CING COMM ERCI AL OPE RATIO N ON SEP TEMBER 30 OF THE OZONE CONTROL PE RIOD FOR WHICH THE FUE L USE RESTRICTION OR THE OPE RATING HOURS OR EMISSIO NS RESTRICTION IS NO LONGER APP LIC ABLE OR DURING WHICH THE UNI T DOES NOT COMPLY WITH THE FUE L USE RESTRICTION OR THE OPE RATING HOURS OR EMISSIO NS RESTRICTION .

(3) AN OXIDES OF NI TROG EN BUDGET UNI T THAT IS SUB J ECT TO A RULE PROMULGATED UN DER SECTIO N 126 OF THE CLEAN AIR ACT SHALL NOT BE SUB J ECT TO THIS RULE UN TIL THE SECTIO N 126 REQUI REMEN TS NO LONGER APP LY.

R 336 .1803 DEF INITIO NS FOR OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 803 . (1) THE PROVISIONS OF 40 C.F.R. §96 .2 ARE ADOPTED BY REFE REN CE IN TH IS RULE. THE DEF INITIONS IN 40 C.F.R. §96 .2 ARE APP LIC ABLE TO R 336 .1802 THROUGH R 336 .1816 . IN ADDITIO N, ALL OF THE FOLLOWI NG DEF INITIONS APP LY AS INDIC ATED:

(a) ) “ELECTRICIT Y-GENE RATING UNI T (EGU)” MEANS :

(i) FOR UNI TS THAT COMM EN CED OPE RATIO N BEF ORE J ANU ARY 1, 1997 , A UNI T SERVING A GENE RATOR DURING 1995 OR 1996 THAT HAD A NAMEP LATE CAPACIT Y OF MORE THAN 25 MEGAWATTS AND PRODUCED ELECTRICIT Y FOR SALE UN DER A FIRM CONTRACT TO THE ELECTRIC GRID .

(ii) FOR UNI TS THAT COMM EN CED OPE RATIO N ON OR AFTER J ANU ARY 1, 1997 , AND BEF ORE J ANU ARY 1, 1999 , A UNI T SERVING A GENE RATOR DURING 1997

OR 1998 THAT HAD A NAMEP LATE CAPACIT Y OF MORE THAN 25 MEGAWATTS AND PRODUCED ELECTRICIT Y FOR SALE UN DER A FIRM CONTRACT TO THE ELECTRIC GRID .

(iii) FOR UNI TS THAT COMM EN CE OPE RATIO N ON OR AFTER J ANU ARY 1, 1999 , A UNI T SERVING A GENE RATOR AT ANY TIM E THAT HAS A NAMEP LATE CAPACIT Y OF MORE THAN 25 MEGAWATTS AND PRODUCES ELECTRICIT Y FOR SALE .

(b) “LARGE AFFE CTED UNI T” MEANS :

(i) FOR UNI TS THAT COMM EN CED OPE RATIO N BEF ORE J ANU ARY 1, 1997 , A UNI T THAT HAS A MAXIMUM DESIGN HE AT IN PU T OF MORE THAN 250 ,000 ,000 BTU'S PE R HOUR AND THAT DID NOT SERVE DURING 1995 OR 1996 A GENE RATOR PROD UCING ELECTRICIT Y FOR SALE UN DER A FIRM CONTRACT TO THE ELECTRIC GRID .

(ii) FOR UNI TS THAT COMM EN CED OPE RATIO N ON OR AFTER J ANU ARY 1, 1997 , AND BEF ORE J ANU ARY 1, 1999 , A UNI T THAT HAS A MAXIMUM DESIGN HE AT IN PU T OF MORE THAN 250 ,000 ,000 BTU'S PE R HOUR AND THAT DID NOT SERVE DURING 1997 OR 1998 A GENE RATOR PRODUCING ELECTRICIT Y FOR SALE UN DER A FIRM CONTRACT TO THE ELECTRIC GRID .

(iii) FOR UNI TS THAT COMM EN CE OPE RATIO N ON OR AFTER J ANU ARY 1, 1999 , A UNI T THAT HAS A MAXIMUM DESIGN HE AT IN PU T OF MORE THAN 250 ,000 ,000 BTU'S PE R HOUR AND TO WHICH EITHE R OF THE FOLLOWI NG PROVISIONS APP LIES:

(A) THE UNI T AT NO TIM E SERVES A GENE RATOR PROD UCING ELECTRICIT Y F OR SALE.

(B) THE UNI T AT ANY TIM E SERVES A GENE RATOR PROD UCING ELECTRICIT Y FOR SALE, IF ANY SUC H GENE RATOR HAS A NAMEP LATE CAPACIT Y OF 25 MEGAWATTS OR LESS AND HAS THE POTEN TIAL TO USE NOT MORE THAN 50 % OF THE POTEN TIAL ELECTRIC AL OUTPU T CAPACIT Y OF THE UNI T.

(c) “OZONE CONTROL PE RIOD ” MEANS THE PE RIOD OF MAY 31, 2004 , THROUGH SEP TEMBER 30 , 2004 , AND THE PE RIOD OF MAY 1 THROUGH SEP TEMBER 30 EACH SUBS EQUEN T YEAR. THE TERM "OZONE CONTROL PE RIOD " REP LACES THE TERM “CONTROL PE RIOD .”

(d) “MIC HIGAN FIN E GRID ZONE ” MEANS THE GEOGRAPH ICAL AREA THAT INCLUD ES ALL OF THE FOLLOWI NG COUN TIES:

(1) ALLEGAN.

(2) BARRY.

(3) BAY.

(4) BE RRI EN .

(5) BRANCH.

(6) CALHOUN .

(7) CASS.

(8) CLI NTON.

(9) EATON.

(10) GENE SEE .

(11) GRATIOT .

(12) HILLSD ALE.

(13) ING HAM.

(14) IONI A.

(15) IS ABE LLA.

(16) ACKSO N.

(17) KALAMAZOO.

(18) KEN T.

(19) LAPEE R.

(20) LEN AWEE .

(21) LIVINGSTON .

(22) MACOMB .

(23) MECOST A.

(24) MIDL AND.

(25) MONROE.

(26) MONTCALM.

(27) MUSKEGON.

(28) NE WAYGO.

(29) OAKLAND.

(30) OCEANA.

(31) OTT AWA.

(32) SAGINAW.

(33) ) SAINT CLAIR.

(34) SAINT J OSEPH .

(35) SANI LAC.

(36) SHIAWASS EE .

(37) TUS COLA.

(38) VANBUREN .

(39) WASHTEN AW.

(40) WAYNE .

(2) FOR R 336 .1803 THROUGH R 336 .1816 , THE PROVISIONS OF 40 C.F.R. PART 96 (2001 ) ARE ADOPTED BY REFE REN CE, EXCEP T AS MODI FIED IN R 336 .1804 , R 336 .1805 , R 336 .1808 , R 336 .1811 , R 336 .1813 , AND R 336 .1815 . A COPY MAY BE INS PE CTED AT THE LANSIN G OFF ICE OF THE AIR QUALIT Y DIVISION OF THE DEP ARTMEN T OF EN VIRONM EN TAL QUALIT Y. COPIES OF THE REGULATIO N MAY BE OBTAIN ED FROM THE DEP ARTMEN T OF EN VIRIONM EN TAL QUALIT Y, AIR QUALIT Y DIVISION , 106 WEST ALLEGAN STREE T, P.O. BOX 30260 , LANSIN G, MIC HIGAN 48909 -7760 , AT A COST AS OF THE TIM E OF ADOPTIO N OF THIS RULE OF $66 .00 . A COPY MAY ALSO BE OBTAIN ED FROM THE SU PE RINTEN DEN T OF DOCUMEN TS, GOVERNMEN T PRINTING OFF ICE, P.O. BOX 371954 , PITTSBURG H, PENN SYLVANI A 15250 -7954 , AT A COST AS OF THE TIM E OF ADOPTIO N OF THIS RULE OF $66 .00 ; OR ON THE UNI TED STATES GOVERNMEN T PRINTING OFF ICE INT ERNE T WEB SIT E AT WWW. ACCESS.GPO.GOV.

R 336 .1804 RE TIRED UN IT EXEMP TION FR OM OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 804 . THE PROVISIONS IN 40 C.F.R. §96 .5 ARE ADOPTED BY REFE REN CE IN R 336 .1803 AND ARE APP LIC ABLE TO THIS RULE, WITH THE FOLLOWI NG MODI FICATIO NS:

(a) ) THE DATE IN (C)(2)(I) OF “MAY 1, 2003 ” SHALL BE REVISED TO “MAY 31, 2004 .”

(b) THE TIM E PE RIOD OF “18 MONTHS” IN (C)(2)(I) SHALL BE REVISED TO “270 DAYS.”

R 336 .1805 STAND ARD RE QUIRE MEN TS OF OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 805 . THE PROVISIONS IN 40 C.F.R. §96 .6 ARE ADOPTED BY REFE REN CE IN R 336 .1803 AND ARE APP LIC ABLE TO THIS RULE, WITH THE FOLLOWI NG MODI FICATIO N: THE DATE IN (C)(3) OF “MAY 1, 2003 ” SHALL BE REVISED TO “MAY 31, 2004 .”

R 336 .1806 COMP UTATIO N OF TIME UNDER OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 806 . THE PROVISIONS IN 40 C.F.R. §96 .7 ARE ADOPTED BY REFE REN CE IN R 336 .1803 AND ARE APP LIC ABLE TO THIS RULE.

R 336 .1807 AUTHORIZED ACCO UN T RE P RESEN TATIVE UNDER OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 807 . THE PROVISIONS IN 40 C.F.R. §96 .10 THROUGH 96 .14 ARE ADOPTED BY REFE REN CE IN R 336 .1803 AND ARE APP LIC ABLE TO THIS RULE.

R 336 .1808 P ER MIT RE QUIRE MEN TS UNDER OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 808 . THE PROVISIONS IN 40 C.F.R. §96 .20 THROUGH 96 .25 ARE ADOPTED BY REFE REN CE IN R 336 .1803 AND ARE APP LIC ABLE TO THIS RULE, WITH THE FOLLOWI NG MODI FICATIO NS:

(a) ) ALL DATES IN §96 .20 THROUGH 96 .25 OF “J ANU ARY 1, 2000 ” SHALL BE REVIS ED TO “J ANU ARY 1, 2001 ,” AND OF “MAY 1, 2003 ” TO “MAY 31, 2004 .”

(b) THE TIM E PE RIOD OF “18 MONTHS” SHALL BE REVISED TO “270 DAYS.”

R 336 .1809 COMP LIANCE CER TIFICATIO N UNDER OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 809 . THE PROVISIONS IN 40 C.F.R. §§96 .30 AND 96 .31 ARE ADOPTED BY REFE REN CE IN R 336 .1803 AND ARE APP LIC ABLE TO THIS RULE.

R 336 .1810 ALLO WANCE ALLOCATIO NS UNDER OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 810 . (1) THE TRADING PROGR AM BUDGET ALLOC ATED BY THE DEP ARTM EN T UN DER SUBRUL E (3) OF THIS RULE FOR AN OZONE CONTROL PE RIOD SHALL EQUAL THE TOTAL NU MBER OF TONS OF OXIDES OF NITROG EN EMISSIO NS APP ORTIO NE D TO THE OXIDES OF NITROG EN BUDGET UNI TS UN DER R 336 .1802 FOR THE OZONE CONTROL PE RIOD , AS DETERMI NE D BY THE PROCEDURES IN THIS RULE. THE TOTAL NU MBER OF TONS OF OXIDES OF NI TROG EN EMISSIO NS THAT ARE AVAILABLE FOR ALLOC ATIO N AS OXIDES OF NI TROG EN ALLOW ANCES UN DER THIS RULE IS AS FOLLOWS :

(a) ) FOR ELECTRICIT Y-GENE RATING UNI TS, 32 ,407 TONS .

(b) FOR LARGE AFFE CTED UNI TS, 1,081 TONS.

(2) THE DEP ARTMEN T SHALL ALLOC ATE OXIDES OF NI TROG EN ALLOW ANCES TO OXIDES OF NITROG EN BUDGET UNI TS ACCORDI NG TO THE FOLLOWI NG SCHE DULE:

(a) ) A 3-YEAR ALLOC ATIO N THAT IS 3 YEARS IN ADVANCE OF THE OZONE CONTROL PE RIOD IN WHICH THE ALLOW ANCES ARE TO BE USE D. THE 3-YEAR ALLOC ATIO N SHALL BE AS FOLLOWS :

(i) BY APRIL 1, 2002 , THE DEP ARTMEN T SHALL SUBMIT , TO THE UNI TED STATES EN VIRONM EN TAL PROTECTIO N AGEN CY, THE OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO NS , IN ACCORD ANCE WITH SUBRUL E (3) OF THIS RULE, FOR THE OZONE CONTROL PE RIODS IN 2004 , 2005 , AND 2006 .

(ii) BY APRIL 1, 2004 , THE DEP ARTMEN T SHALL SUBMIT , TO THE UNI TED STATES EN VIRONM EN TAL PROTECTIO N AGEN CY, THE OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO NS , IN ACCORD ANCE WITH SUBRUL E (3) OF THIS RULE, FOR THE OZONE CONTROL PE RIOD IN 2007 , 2008 , AND 2009 .

(iii) BY APRIL 1, 2007 , THE DEP ARTMEN T SHALL SUBMIT , TO THE UNI TED STATES EN VIRONM EN TAL PROTECTIO N AGEN CY, THE OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO NS , IN ACCORD ANCE WITH SUBRUL E (3) OF THIS RULE, FOR THE OZONE CONTROL PE RIOD IN 2010 , 2011 , AND 2012 .

(iv) BY APRIL 1, 2010 , AND THE REAFTER APRIL 1 OF THE YEAR THAT IS 3 YEARS AFTER THE LAST YEAR OF ALLOC ATIO NS , THE DEP ARTM EN T SHALL SUBMIT , TO THE UNI TED STATES EN VIRONM EN TAL PROTECTIO N AGEN CY, THE OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO NS , IN ACCORD ANCE WITH SUBRUL E

(3) OF THIS RULE, FOR THE OZONE CONTROL PE RIODS 3, 4, AND 5 YEARS AFTER THE YEAR OF THE ALLOW ANCE ALLOC ATIO N.

(b) IF THE DEP ARTMEN T FAILS TO SUBMIT THE OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO NS IN ACCORD ANCE WITH THIS SUBDI VISION TO THE UNI TED STATES EN VIRONM EN TAL PROT ECTIO N AGEN CY, THEN THE UNI TED STATES EN VIRONM EN TAL PROT ECTIO N AGEN CY WILL ALLOC ATE, FOR THE APP LIC ABLE OZONE CONTROL PE RIOD , THE SAME NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES AS WERE ALLOC ATED FOR THE PRECEDING OZONE CONTROL PE RIOD .

(c) BY APRIL 1, 2005 , AND APRIL 1 OF EACH YEAR THE REAFTER, THE DEP ARTMEN T SHALL SUBMIT , TO THE UNI TED STATES EN VIRONM EN TAL PROTECTIO N AGEN CY, THE OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO NS

REMAINING IN THE ALLOC ATIO N SET ASID E FOR THE PRIOR OZONE CONTROL PE RIOD , IN ACCORD ANCE WITH SUBRUL E (3) OF THIS RULE.

(3) THE HE AT IN PU T, IN MILLIO N BTU'S, USE D FOR CALCULATING OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO NS FOR EACH OXIDES OF NI TROG EN BUDGET UNI T UN DER R 336 .1805 SHALL BE AS FOLLOWS :

(a) ) FOR AN OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO N UN DER SUBRUL E (2)(A)(I) OF THIS RULE, THE FOLLOWI NG PROVISIONS APP LY, AS APP LIC ABLE:

(i) FOR AN ELECTRIC GENE RATING UNI T, THE AVERAGE OF THE 2 HIGHE ST AMOUN TS OF THE UNI T’S HE AT IN PU T FOR THE OZONE CONTROL PE RIODS IN 1995 THROUGH 2000 MULTI PLIED BY 1.07 .

(ii) FOR A LARGE AFFE CTED UNI T, THE AVERAGE OF THE 2 HIGHE ST AMOUN TS OF THE UNI T'S HE AT IN PU T FOR THE OZONE CONTROL PE RIODS IN 1995 THROUGH 2000 .

(b) FOR AN OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO N UN DER SUBRUL E (2)(A)(II) THROUGH (IV) OF THIS RULE, THE UNI T’S AVERAGE OF THE 2 HIGHE ST HE AT IN PU TS FOR THE OZONE CONTROL PE RIOD IN THE 5 YEARS IMMEDIATELY PRECEDING THE YEAR FOR WHICH THE DEP ARTM EN T IS REQUI RED TO SUBMIT THE OXIDES OF NI TROG EN ALLOC ATIO NS.

(c) THE UNI T’S TOTAL HE AT IN PU T FOR THE OZONE CONTROL PE RIOD IN EACH YEAR SHALL BE DETERMI NE D IN ACCORD ANCE WITH 40 C.F.R. PART 75 IF THE OXIDES OF NI TROG EN BUDGET UNI T WAS OTHE RWIS E SUB J ECT TO THE REQUI REMEN TS OF 40 C.F.R. PART 75 FOR THE YEAR, OR SHALL BE BASED ON THE BEST AVAILABLE DATA REP ORT ED TO THE DEP ARTM EN T FOR THE UNI T IF THE UNI T WAS NOT OTHE RWIS E SUB J ECT TO THE REQUI REMEN TS OF 40

C.F.R. PART 75 FOR THE YEAR. THE OWNE R OR OPE RATOR OF AN OXIDES OF NI TROG EN BUDGET UNI T SHALL SUBMIT HE AT IN PU T DATA WITHIN 30 DAYS IF REQUES TED BY THE DEP ARTMEN T. TITL E 40 C.F.R. PART 75 IS ADOPTED BY REFE REN CE IN R 336 .1801 .

(4) FOR EACH OZONE CONTROL PE RIOD UN DER SUBRUL E (2) OF THIS RULE, THE DEP ARTMEN T SHALL ALLOC ATE TO ALL OXIDES OF NI TROG EN BUDGET UNI TS THAT COMM EN CED OPE RATIO N BEF ORE MAY 1 OF THE MOST RECEN T YEAR OF THE 5-YEAR PE RIOD USE D TO CALCULATE HE AT IN PU T UN DER SUBRUL E (3) OF THIS RULE, A TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOWANCES EQUAL TO 95% IN 2004 , 2005 , AND 2006 , OR 98% THE REAFTER, OF THE TONS OF OXIDES OF NITROG EN EMISSIO NS IN THE TRADING PROGR AM BUDGET APP ORTIO NE D IN ACCORD ANCE WITH THE FOLLOWI NG PROCEDURES:

(a) ) THE DEP ARTMEN T SHALL ALLOC ATE OXIDES OF NI TROG EN ALLOW ANCES TO EACH ELECTRICIT Y-GENE RATING UNI T IN AN AMOUN T EQUALING 0.15 POUN D PE R MILLIO N BTU'S OR THE ALLOW ABLE EMISSIO N RATE, WHICHE VER IS MORE STRING EN T, MULTI PLIED BY THE HE AT IN PU T DETERMI NE D UN DER SUBRUL E (3) OF THIS RULE, ROUN DED TO THE NE AREST WHOLE OXIDES OF NI TROG EN ALLOW ANCE, AS APP ROPRIATE.

(B) IF THE INITI AL TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED TO ALL ELECTRICIT Y-GENE RATING UNI TS FOR AN OZONE

CONTROL PE RIOD UN DER SUBDI VISION (A) OF THIS SUBRUL E DOES NOT EQUAL 95% IN 2004 , 2005 , AND 2006 , AND 98% THE REAFTER, OF THE NU MBER OF TONS OF OXIDES OF NITROG EN EMISSIO NS IN THE TRADING PROGR AM BUDGET APP ORTIO NE D TO ELECTRIC GENE RATING UNI TS UN DER SUBRUL E (1)(A) OF THIS RULE, THEN THE DEP ARTMEN T SHALL ADJ UST THE TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED TO ALL OXIDES OF NITROG EN BUDGET UNI TS FOR THE OZONE CONTROL PE RIOD UN DER SUBDI VISION (A) OF THIS SUBRUL E SO THAT THE TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED EQUALS 95 % IN 2004 , 2005 , AND 2006 , AND 98% THE REAFTER, OF THE NU MBER OF TONS OF OXIDES OF NI TROG EN EMISSIO NS IN THE TRADING PROGR AM BUDGET APP ORTIO NE D TO ELECTRIC GENE RATING UNI TS UN DER SUBRUL E (1)(A) OF THIS RULE. THE ADJ USTMEN T SHALL BE MADE BY DOI NG BOTH OF THE FOLLOWI NG:

(i) MULTI PLYING EACH UNI T’S ALLOC ATIO N BY 95% IN 2004 , 2005 , AND 2006 , AND 98% THE REAFTER, OF THE NU MBER OF TONS OF OXIDES OF NITROG EN EMISSIO NS IN THE TRADING PROGR AM BUDGET APP ORTIO NE D TO ELECTRIC GENE RATING UNI TS.

(ii) DIVIDING BY THE TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED UN DER SUBDI VISION (A) OF THIS SUBRUL E, AND ROUN DING TO THE NE AREST WHOLE OXIDES OF NI TROG EN ALLOW ANCE, AS APP ROPRIATE.

(c) THE DEP ARTMEN T SHALL ALLOC ATE OXIDES OF NI TROG EN ALLOW ANCES TO EACH LARGE AFFE CTED UNI T IN AN AMOUN T EQUALING 0.17 POUN D PE R MILLIO N BTU'S OR THE ALLOW ABLE EMISSIO N RATE, WHICHE VER IS MORE STRING EN T, MULTI PLIED BY THE HE AT IN PU T DETERMI NE D UN DER SUBRUL E

(3) OF THIS RULE, ROUN DED TO THE NE AREST WHOLE OXIDES OF NITROG EN ALLOW ANCE, AS APP ROP RIATE.

(d) IF THE INITI AL TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED TO ALL LARGE AFFE CTED UNI TS FOR AN OZONE CONTROL PE RIOD UN DER SUBDI VISION (C) OF THIS SUBRUL E DOES NOT EQUAL 95 % IN 2004 , 2005 , AND 2006 , AND 98% THE REAFTER, OF THE NU MBER OF TONS OF OXIDES OF NITROG EN EMISSIO NS IN THE TRADING PROGR AM BUDGET APP ORTIO NE D TO LARGE AFFE CTED UNI TS, THEN THE DEP ARTMEN T SHALL ADJ US T THE TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED TO ALL OXIDES OF NI TROG EN BUDGET UNI TS FOR THE OZONE CONTROL PE RIOD UN DER SUBDI VISION (C) OF THIS SUBRUL E SO THAT THE TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED EQUALS 95% IN 2004 , 2005 , AND 2006 , AND 98% THE REAFTER, OF THE NU MBER OF TONS OF OXIDES OF NITROG EN EMISSIO NS IN THE TRADING PROGR AM BUDGET APP ORTIO NE D TO LARGE AFFE CTED UNI TS. THE ADJ US TMEN T SHALL BE MADE BY DOI NG BOTH OF THE FOLLOWI NG:

(ii) DIVIDING BY THE TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED UN DER SUBDI VISION (C) OF THIS SUBRUL E, AND ROUN DING TO THE NE AREST WHOLE OXIDES OF NI TROG EN ALLOW ANCE, AS APP ROPRIATE.

(e) THE AUTHORI ZED ACCO UN T REP RE SEN TATIVE OF AN ELECTRIC GENE RATING UNI T OR A LARGE AFFE CTED UNI T THAT HAS NOT BEEN CAPABLE OF OPE RATING FOR 2 COMPLETE OZONE CONTROL PE RIODS , BE CAUSE IT RE CEN TLY RE CE IVE D ITS AIR USE PE RMIT , MAY E LE CT TO ABANDON ITS ALLOW ANCE ALLOC ATIO N FOR THE 3-YEAR ALLOC ATIO N PE RIOD , BE CONSI DERED A NE W SOURC E, AND OBTAIN AN OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO N AS PROVIDED FOR BY SUBDI VISION (G) OF THIS SUBRUL E. A WRITT EN NOTI FICATIO N OF THE ELECTIO N SHALL BE PROVIDED TO THE DEP ARTM EN T BEF ORE J ANU ARY 1 OF THE DISTRIB UTIO N YEAR IDEN TIFIED IN SUBRUL E (2)(A) OR (C) OF THIS RULE. THE ABANDONE D ALLOC ATIO N RETURNS TO THE APP ROPRIATE OXIDES OF NI TROG EN TRADING BUDGET IN SUBRUL E (1)(A) OR (B) OF THIS RULE.

(f) AFTER THE PROVISIONS OF SUBDI VISIONS (C) AND (D) OF THIS SUBRUL E HAVE BEEN FOLLOW ED, AN OWNE R OR OPE RATOR MAY PU RSUE THE FOLLOWI NG:

(i) THE ALLOC ATIO N DETERMI NE D BY SUBDI VISIONS (C) AND (D) OF THIS SUBRUL E MAY BE REVISED FOR A GIVEN UNI T IF THE OWNE R OR OPE RATOR DEMONS TRATES TO THE DEP ARTMEN T THAT THE 0.17 POUN D PE R MILLIO N BTU CONTROL LEVEL RESULTS IN EXCESSI VELY COSTL Y OR PROHIBITI VE COMPLIANCE. THE DEMONS TRATIO N SHALL INCLUD E ALL OF THE FOLLOWI NG:

(A) AN EN GINEE RING STUD Y ANALYZING ALL CONTROL OPTIO NS THAT ARE TECHN ICALLY AVAILABLE FOR THE UNI T, INCLUDING CONTROL OPTIO NS THAT WOULD ACHIEVE A LEVEL OF CONTROL MEE TING, AT A MINI MUM, A 0.3 POUN D PE R MILLIO N BTU EMISSIO N RATE.

(B) THE ANNU ALIZED COST ASSOCI ATED WITH EACH CONTROL OPTIO N. AN ANNU ALIZED COST OF MORE THAN $4 ,000 .00 PE R TON OF OXIDE OF NITROG EN REDUCED WILL GENE RALLY BE CONSI DERED TO BE AN EXCESSI VE COST .

(ii) NOTWIT HSTANDING THE AVAILABLE ALLOC ATIO NS OF SUBRUL E (1)(B) OF THIS RULE, THE TOTAL NU MBER OF ALLOC ATIO NS AVAILABLE FOR LARGE AFFE CTED UNI TS AFTER DEP ARTM EN T APP ROVAL OF PARAGRAPH (i) DEMONSTRATIO NS SHALL NOT BE MORE THAN 2,209 TONS PE R OZONE SEASON .

(iii) THE DEP ARTM EN T SHALL DETERMI NE HOW REVIS ED ALLOC ATIO NS ARE DISTRIB UTED AMONG THOSE UNI TS MEE TING THE CRIT ERIA IN PARAGRAPH (I) OF THIS SUBDI VISION .

(g) FOR OXIDES OF NITROG EN BUDGET UNI TS THAT COMM EN CED OPE RATIO N, OR ARE PROJ ECTED TO COMM EN CE OPE RATIO N, ON OR AFTER MAY 1 OF THE MOST RE CEN T YE AR OF THE 5-YE AR PE RIOD USE D TO CALCULATE HE AT IN PU T UN DER SUBRUL E (3) OF THIS RULE AND UNI TS WHICH HAVE ABANDONE D ALLOC ATIO NS UN DER SUBDI VISON (E) OF THIS SUBRUL E, THE

DEP ARTM EN T SHALL ALLOC ATE OXIDES OF NI TROG EN ALLOW ANCES IN ACCORD ANCE WITH THE FOLLOWI NG PROCEDURES:

(i) THE DEP ARTMEN T SHALL ESTABLIS H 2 ALLOC ATIO N SET-ASID E POOLS FOR EACH OZONE CONTROL PE RIOD : 1 POOL FOR ELECTRIC GENE RATING UNI TS AND 1 FOR LARGE AFFE CTED UNI TS. EACH ALLOC ATIO N SET-ASID E POOL SHALL BE ALLOC ATED OXIDES OF NI TROG EN ALLOW ANCES EQUAL TO 5% IN 2004 , 2005 , AND 2006 , AND 2% THE REAFTER, OF THE TONS OF OXIDES OF NI TROG EN EMISSIO NS IN THE TRADING PROGR AM BUDGET UN DER SUBRUL E (1) OF THIS RULE, ROUN DED TO THE NE AREST WHOLE OXIDES OF NI TROG EN ALLOW ANCE, AS APP ROPRIATE.

(ii) THE OXIDES OF NI TROG EN AUTHORI ZED ACCOUN T REP RESEN TATIVE OF AN OXIDES OF NI TROG EN BUDGET UNI T UN DER THIS SUBDI VISION MAY SUBMIT TO THE DEP ARTM EN T AN ANNU AL REQUES T, IN WRITING OR IN A FORMAT SPE CIFIED BY THE DEP ARTMEN T, TO BE ALLOC ATED OXIDES OF NI TROG EN ALLOW ANCES FOR NOT MORE THAN 3 CONSE CUTIVE OZONE CONTROL PE RIODS UN DER SUBRUL E (2) OF THIS RULE, STARTI NG WITH THE OZONE CONTROL PE RIOD DURING WHICH THE OXIDES OF NITROG EN BUDGET UNI T COMM EN CED OR IS PROJ ECTED TO COMM EN CE OPE RATIO N AND EN DING WITH THE OZONE CONTROL PE RIOD PRECEDING THE OZONE CONTROL PE RIOD FOR WHICH IT SHALL RECEIVE AN ALLOC ATIO N UN DER SUBDI VISION (A) OR (C) OF THIS SUBRUL E. THE OXIDES OF NITROG EN ALLOW ANCE ALLOC ATIO N REQUES T SHALL BE SUBMITT ED BEF ORE MAY 1 OF THE FIRST OZONE CONTROL PE RIOD FOR WHICH THE OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO N IS REQUES TED AND AFTER THE DATE ON WHICH THE DEP ARTMEN T ISSU ES A PE RMIT TO INST ALL THE OXIDES OF NI TROG EN BUDGET UNI T.

(iii) IN AN OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO N REQUES T UN DER THIS SUBDI VISION , THE OXIDES OF NITROG EN AUTHORI ZED ACCOUN T REP RESEN TATIVE MAY REQUES T AN OZONE CONTROL PE RIOD OXIDES OF NI TROG EN ALLOW ANCE IN AN AMOUN T THAT DOES NOT EXCEE D THE FOLLOWI NG:

(A) FOR AN ELECTRICIT Y-GENE RATING UNI T, ALL OF THE FOLLOWI NG:

(1) FIFTEEN ONE -HUN DREDTHS (0.15) POUN D PE R MILLIO N BTU'S OR THE ALLOW ABLE EMISSIO N RATE, WHICHE VER IS MOR E STRING EN T.

(2) MULTI PLIED BY THE OXIDES OF NITROG EN BUDGET UNI T’S MAXIMUM DESIGN HE AT IN PU T, IN MILLIO N BTU'S PE R HOUR.

(3) MULTI PLIED BY THE NU MBER OF HOURS REMAINING IN THE OZONE CONTROL PE RIOD STARTI NG WITH THE FIRST DAY IN THE OZONE CONTROL PE RIOD ON WHICH THE UNI T OPE RATED OR IS PROJ ECTED TO OPE RATE.

(B) FOR A LARGE AFFE CTED UNI T, ALL OF THE FOLLOWI NG:

(1) SEVEN TEEN ONE -HUN DREDTHS (0.17) POUN D PE R MILLIO N BTU'S OR THE ALLOW ABLE EMISSIO N RATE, WHICHE VER IS MOR E STRING EN T.

(2) MULTI PLIED BY THE OXIDES OF NITROG EN BUDGET UNI T’S MAXIMUM DESIGN HE AT IN PU T, IN MILLIO N BTU'S PE R HOUR.

(3) MULTI PLIED BY THE NU MBER OF HOURS REMAINING IN THE OZONE CONTROL PE RIOD STARTI NG WITH THE FIRST DAY IN THE OZONE CONTROL PE RIOD ON WHICH THE UNI T OPE RATED OR IS PROJ ECTED TO OPE RATE.

(iv) THE DEP ARTMEN T SHALL REVIEW, AND ALLOC ATE OXIDES OF NI TROG EN ALLOW ANCES PU RSUANT TO, EACH OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO N REQUES T ON A PRO RATA BASIS AS FOLLOWS :

(A) UP ON RECEIPT OF THE OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO N REQUES T, THE DEP ARTMEN T SHALL DETERMI NE WHE THE R, AND SHALL MAKE ANY NE CESSARY ADJ US TMEN TS TO THE REQUES T TO EN SUR E THAT, FOR ELECTRICIT Y-GENE RATING UNI TS, THE OZONE CONTROL PE RIOD AND THE NU MBER OF ALLOW ANCES SPE CIFIED ARE CONSIS TEN T WITH THE REQUI REMEN TS OF SUBRUL E (3)(A) OF THIS RULE AND, FOR LARGE AFFE CTED UNI TS, THE OZONE CONTROL PE RIOD AND THE NU MBER OF ALLOW ANCES SPE CIFIED ARE CONSIS TEN T WITH THE REQUI REMEN TS OF SUBRUL E (3)(B) OF THIS RULE.

(B) IF THE ALLOC ATIO N SET-ASID E POOL FOR THE OZONE CONTROL PE RIOD FOR WHICH OXIDES OF NI TROG EN ALLOW ANCES ARE REQUES TED HAS AN AMOUN T OF OXIDES OF NI TROG EN ALLOW ANCES GREATER THAN OR EQUAL TO THE NU MBER REQUES TED, AS ADJ US TED UN DER PARAGRAPH (I) OF THIS SUBDI VISION , THEN THE DEP ARTMEN T SHALL ALLOC ATE THE AMOUN T OF THE OXIDES OF NITROG EN ALLOWANCES REQUES TED, AS ADJ USTED UN DER PARAGRAPH (I) OF THIS SUBDI VISION , TO THE OXIDES OF NITROG EN BUDGET UNI T.

(C) IF THE ALLOC ATIO N SET-ASID E POOL FOR THE OZONE CONTROL PE RIOD FOR WHICH OXIDES OF NI TROG EN ALLOW ANCES ARE REQUES TED HAS AN AMOUN T OF OXIDES OF NI TROG EN ALLOW ANCES LESS THAN THE NU MBER REQUES TED, AS ADJ USTED UN DER PARAGRAPH (I) OF THIS SUBDI VISION , THEN THE DEP ARTMEN T SHALL ADJ US T THE TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED TO ALL OXIDES OF NI TROG EN BUDGET UNI TS FOR THE OZONE CONTROL PE RIOD SO THAT THE TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED EQUALS 5% IN 2004 , 2005 , AND 2006 , AND 2% THE REAFTER, OF THE NU MBER OF TONS OF OXIDES OF NITROG EN EMISSIO NS IN THE TRADING PROGR AM BUDGET. THE ADJ US TMEN T SHALL BE MADE BY DOI NG THE FOLLOWI NG, AS APP ROPRIATE: (1) FOR ELECTRIC -GENE RATING UNI TS, MULTI PLYING EACH UNI T’S ALLOC ATIO N BY 5% IN 2004 , 2005 , AND 2006 , AND 2% THE REAFTER, OF THE NU MBER OF TONS OF OXIDES OF NITROG EN EMISSIO NS IN THE TRADING PROGR AM BUDGET APP ORTIO NE D TO ELECTRICIT Y-GENE RATING UNI TS AND DIVIDING BY THE SUM OF OXIDES OF NI TROG EN ALLOW ANCES REQUES TED UN DER THIS SUBDI VISION FOR ELECTRICIT Y-GENE RATING UNI TS, AND ROUN DING TO THE NE AREST WHOLE OXIDES OF NI TROG EN ALLOW ANCE, AS APP ROP RIATE .

(2) FOR LARGE AFFE CTED UNI TS, MULTI PLYING EACH UNI T’S ALLOC ATIO N BY 5% IN 2004 , 2005 , AND 2006 , AND 2% THE REAFTER, OF THE NU MBER OF TONS OF OXIDES OF NITROG EN EMISSIO NS IN THE TRADING PROGR AM BUDGET

APP ORTIO NE D TO LARGE AFFE CTED UNI TS AND DIVIDING BY THE SUM OF OXIDES OF NI TROG EN ALLOW ANCES REQUES TED UN DER THIS SUBDI VISION FOR LARGE AFFE CTED UNI TS AND ROUN DING TO THE NE AREST WHOLE OXIDES OF NI TROG EN ALLOW ANCE, AS APP ROPRIATE.

(5) FOR AN OXIDES OF NI TROG EN BUDGET UNI T THAT IS ALLOC ATED OXIDES OF NI TROG EN ALLOW ANCES UN DER SUBRUL E (4) OF THIS RULE FOR AN OZONE CONTROL PE RIOD , THE UNI TED STATES EN VIRONM EN TAL PROTECTIO N AGEN CY WILL DEDUCT OXIDES OF NI TROG EN ALLOW ANCES UN DER 40 C.F.R. §§96.54(B)(1) OR 96.54(E) TO ACCOUN T FOR THE ACTUAL UTILI ZATIO N OF THE UNI T DURING THE OZONE CONTROL PE RIOD . THE UNI TED STATES EN VIRONM EN TAL PROT ECTIO N AGEN CY WILL CALCULATE THE NU MBER OF EXCESS OXIDES OF NI TROG EN ALLOW ANCES REMAINING IN THE SET-ASID E POOL USIN G THE FOLLOWI NG FORMULAS AND ROUN DING TO THE NE AREST WHOLE OXIDES OF NI TROG EN ALLOW ANCE, AS APP ROPRIATE, IF THE NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES REMAINING IS 0 IF THE NU MBER CALCULATED IS LESS THAN 0:

(a) ) OXIDES OF NI TROG EN ALLOW ANCES REMAINING FOR ELECTRICIT Y- GENE RATING UNI TS EQUALS THE SUM OF EACH UNI T’S OXIDES OF NITROG EN ALLOW ANCES ALLOC ATED FOR THE OZONE CONTROL PE RIOD MINUS EACH UNI T’S ACTUAL OZONE CONTROL PE RIOD UTILI ZATIO N TIM ES 0.15 POUN D PE R MILLIO N BTU'S OR THE ALLOW ABLE EMISSIO N RATE, WHICHE VER IS MORE STRING EN T.

(b) OXIDES OF NI TROG EN ALLOW ANCES REMAINING FOR LARGE AFFE CTED UNI TS EQUALS THE SUM OF EACH UNI T’S OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED FOR OZONE CONTROL PE RIOD MINUS THE UNI T’S ACTUAL OZONE CONTROL PE RIOD UTILI ZATIO N TIM ES 0.17 POUN D PE R MILLIO N BTU'S OR THE ALLOW ABLE EMISSIO N RATE, WHICHE VER IS MOR E STRING EN T. WHE RE : “UNI T’S OXIDES OF NI TROG EN ALLOWANCES ALLOC ATED FOR OZONE CONTROL PE RIOD ” IS THE NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED TO THE UNI T FOR THE OZONE CONTROL PE RIOD UN DER SUBRUL E

(4) OF THIS RULE; AND WHE RE “UNI T’S ACTUAL OZONE CONTROL PE RIOD UTILI ZATIO N” IS THE UTILI ZATIO N, IN MILLIO N BTU'S, AS DEF IN ED IN R 336 .1803 , OF THE UNI T DURING THE OZONE CONTROL PE RIOD . TITL E 40 C.F.R., PART 96 , IS ADOPTED BY REFE REN CE IN R 336 .1803 .

(6) AFTER MAKING THE DEDUCTIO NS FOR COMPLIANCE UN DER 40 C.F.R.

§96 .54(B)(1) OR (E) FOR AN OZONE CONTROL PE RIOD , THE UNI TED STATES EN VIRONM EN TAL PROT ECTIO N AGEN CY WILL NOTI FY THE DEP ARTM EN T WHE THE R ANY OXIDES OF NI TROG EN ALLOW ANCES REMAIN IN THE ELECTRIC GENE RATING UNI T ALLOC ATIO N SET-ASID E POOL OR THE LARGE AFFE CTED UNI T SET-ASID E POOL FOR THE OZONE CONTROL PE RIOD . THE DEP ARTMEN T SHALL ALLOC ATE ANY REMAINING OXIDES OF NI TROG EN ALLOW ANCES TO THE OXIDES OF NI TROG EN BUDGET UNI TS RECEIVING ALLOC ATIO NS UN DER SUBRUL E (4)(A) THROUGH (D) AND (F) OF THIS RULE USIN G THE FOLLOWI NG FORMULA AND ROUN DING TO THE NE AREST WHOLE OXIDES OF NI TROG EN ALLOW ANCE, AS APP ROPRIATE. A UNI T’S SHARE OF

OXIDES OF NI TROG EN ALLOW ANCES REMAINING IN THE APP ROPRIATE ALLOC ATIO N SET-ASID E POOL EQUALS TOTAL OXIDES OF NI TROG EN ALLOW ANCES REMAINING IN THE ALLOC ATIO N SET-ASID E POOL TIM ES (UNI T’S OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO N DIVIDED BY TRADING PROGR AM BUDGET EXCLUDING THE ALLOC ATIO N SET-ASID E) WHE RE :

(a) ) TOTAL OXIDES OF NI TROG EN ALLOW ANCES REMAINING IN ALLOC ATIO N SET-ASID E POOL IS THE TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES REMAINING IN THE ALLOC ATIO N SET-ASID E POOL FOR THE OZONE CONTROL PE RIOD TO WHICH THE ALLOC ATIO N SET-ASID E POOL APP LIES.

(b) UNI T’S OXIDES OF NI TROG EN ALLOW ANCE ALLOC ATIO N IS THE NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES ALLOC ATED UN DER SUBRUL E (4)(A) THROUGH (E) OF THIS RULE TO THE UNI T FOR THE OZONE CONTROL PE RIOD TO WHICH THE ALLOC ATIO N SET-ASID E APP LIES.

(c) THE TRADING PROGR AM BUDGET, EXCLUDING ALLOC ATIO N SET-ASID E POOL, IS THE TRADING PROGR AM BUDGET UN DER SUBRUL E (1) OF THIS RULE FOR THE OZONE CONTROL PE RIOD TO WHICH THE ALLOC ATIO N SET-ASID E APP LIES MULTI PLIED BY 95 % IF THE OZONE CONTROL PE RIOD IS IN 2004 , 2005 , OR 2006 AND 98 % IF THE OZONE CONTROL PE RIOD IS IN ANY YEAR THE REAFTER, ROUN DED TO THE NE AREST WHOLE OXIDES OF NI TROG EN ALLOW ANCE, AS APP ROP RIATE.

(d) WHEN ALLOC ATIO NS FOR LARGE AFFE CTED UNI TS ARE INCR EASED BY THE PROVISIONS OF SUBRUL E (4)(F) OF THIS RULE, THE TRADING PROGR AM BUDGET FOR LARGE AFFE CTED UNI TS IS THE TOTAL ALLOC ATIO N INCR EASE ADDED TO THE BUDGET CALCULATED IN SUBDI VISION (C) OF THIS SUBRUL E.

R 336 .1811 ALLO WANCE TRACKI NG SYSTEM UNDER OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 811 . THE PROVISIONS IN 40 C.F.R. §§96.50 THROUGH 96.54, 96.56, AND

96 .57 ARE ADOP TE D BY REFE REN CE IN R 336 .1803 AND ARE APP LIC ABLE TO THIS RULE, WITH THE FOLLOWI NG MODI FICATIO N: IN §96.53, THE DATE OF “2003 ” SHALL BE REVISED TO “2004 .”

R 336 .1812 ALLO WANCE TRANSFERS UNDER OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 812 . THE PROVISIONS IN 40 C.F.R. §§96.60 THROUGH 96.62 ARE ADOPTED BY REFE REN CE IN R 336 .1803 AND ARE APP LIC ABLE TO THIS RULE.

R 336 .1813 MONITORING AND RE P ORTING RE QUIRE MEN TS UNDER OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 813 . THE PROVISIONS IN 40 C.F.R. §§96.70 THROUGH 96.76 ARE ADOPTED BY REFE REN CE IN R 336 .1803 AND ARE APP LIC ABLE TO THIS RULE, WITH THE FOLLOWI NG MODI FICATIO N: IN §96.70, THE DATE “MAY 1, 2002 ,” SHALL BE REVISED TO "MAY 1, 2003 ."

R 336 .1814 IND IVIDU AL OP T-INS UNDER OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 814 . THE PROVISIONS IN 40 C.F.R. §§96.80 THROUGH 96.88 ARE ADOPTED BY REFE REN CE IN R 336 .1803 AND ARE APP LIC ABLE TO THIS RULE.

R 336 .1815 ALLO WANCE BANKING UNDER OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 815 . THE PROVISIONS IN 40 C.F.R. §96 .55 ARE ADOPTED BY REFE REN CE IN R 336 .1803 AND ARE APP LIC ABLE TO THIS RULE, WITH THE FOLLOWI NG MODI FICATIO NS:

(a) ) IN §96 .55 , THE DATE OF “2004 ” SHALL BE REVISED TO “2005 .”

(b) THE FIRST SEN TEN CE OF (B)(3)(II) SHALL BE REVISED TO READ, “THE ADMI NIS TRATOR WILL MULTI PLY THE NU MBER OF BANKED OXIDES OF NI TROG EN ALLOW ANCES IN EACH COM PLIANCE ACCOUN T OR OVERDRAFT ACCOUN T BY THE RATIO DETERMI NE D UN DER (I).”

R 336 .1816 COMP LIANCE SU PP LEMEN T P OOL UNDER OXIDES OF NITROGEN BUD GET TRADING P ROGRAM.

RULE 816 . (1) THE DEP ARTMEN T MAY ALLOW SOURC ES REQUI RED TO IMPLEMEN T OXIDES OF NI TROG EN EMISSIO N CONTROL MEASUR ES BY MAY 31 , 2004 , AND SUB J ECT TO THIS RULE, TO DEMONS TRATE COMPLIANCE IN THE

2004 AND 2005 OZONE CONTROL PE RIODS USIN G CREDIT ISSU ED FROM A COMPLIANCE SU PP LEMEN T POOL IN ACCORD ANCE WITH THIS RULE. A SOURC E SHALL NOT USE CREDIT FROM THE COMPLIANCE SU PP LEMEN T POOL TO DEMONS TRATE COMPLIANCE AFTER THE 2005 OZONE CONTROL PE RIOD .

(2) THE DEP ARTMEN T MAY DISTRIB UTE OXIDES OF NI TROG EN ALLOC ATIO NS FROM THE COMPLIANCE SU PP LEMEN T POOL TO OXIDES OF NI TROG EN BUDGET UNI TS THAT ARE REQUI RED TO IMPLEMEN T CONTROL MEASUR ES. THE DEP ARTMEN T MAY ISSU E UP TO 95 % OF THE COMPLIANCE SU PP LEMEN T POOL TO OXIDES OF NI TROG EN BUDGET UNI TS THAT ARE ELECTRICIT Y- GENE RATING UNI TS AND UP TO 5% OF THE COMPLIANCE SU PP LEMEN T POOL TO OXIDES OF NI TROG EN BUDGET UNI TS THAT ARE LARGE AFFE CTED UNI TS THAT IMPLEMEN T EMISSIO NS REDUCTIO NS BEYOND ALL APP LIC ABLE REQUI REMEN TS DURING THE OZONE CONTROL PE RIOD IN YEARS BEF ORE THE YEAR 2004 ACCORDI NG TO THE FOLLOWI NG PROVISIONS :

(a) ) THE DEP ARTM EN T SHALL COM PLETE THE ISSU ANCE PROC ESS NOT LATER THAN MAY 31 , 2004 .

(b) THE EMISSIO NS REDUCTIO N SHALL NOT BE REQUI RED BY MIC HIGAN’S STATE IMPLEMEN TATIO N PLAN, STATE LAW, OR RULE OR BE OTHE RWIS E RE QUI RE D BY THE CLEAN AIR ACT.

(c) THE EMISSIO NS REDUCTIO N SHALL BE VERIFIED BY THE SOURC E AS ACTUALLY HAVING OCCURRED DURING AN OZONE CONTROL PE RIOD BETWEEN SEP TEMBER 30 , 2000 , AND MAY 31 , 2004 .

(d) EACH OXIDES OF NITROG EN BUDGET UNI T FOR WHICH THE OWNE R OR OPE RATOR REQUES TS ANY EARLY REDUCTIO N CREDITS UN DER THIS RULE SHALL MONI TOR OXIDES OF NI TROG EN EMISSIO NS IN ACCORD ANCE WITH 40 C.F.R. PART 75 , SUB PART H, STARTI NG AT LEAST 1 CALEN DAR YEAR PRIOR TO THE OZONE CONTROL PE RIOD FOR WHICH THE EARLY REDUCTIO N CREDITS ARE REQUES TED. THE UNI T’S MONI TORI NG SYSTEM AVAILABILIT Y SHALL BE NOT LESS THAN 90 % DURING THE FIRST OZONE CONTROL PE RIOD IN WHICH MONI TORI NG OCCURS FOR THIS PU RPOSE, AND THE UNI T MUS T BE IN COM PLIANCE WITH ANY APP LIC ABLE STATE OR FE DERAL EMISSIO NS OR EMISSIO NS -RELATED REQUI REMEN TS.

(e) THE EMISSIO NS REDUCTIO N MUS T BE QUANTIFIED ACCORDI NG TO PROCEDURES SET FORTH IN 40 C.F.R. PART 75 , SUB PART H, WHICH ARE ADOPTED BY REFE REN CE IN R 336 .1801 .

(f) THE OXIDES OF NI TROG EN AUTHORI ZED ACCOUN T REP RESEN TATIVE OF AN OXIDES OF NI TROG EN BUDGET UNI T THAT MEE TS THE REQUI REMEN TS OF SUBDI VISIONS (B) THROUGH (D) OF THIS SUBRUL E MAY SUBMIT TO THE DEP ARTM EN T A REQUES T FOR EARLY REDUCTIO N CREDITS FOR THE UNI T BASED ON OXIDES OF NITROG EN EMISSIO N RATE REDUCTIO NS MADE BY THE UNI T IN THE OZONE CONTROL PE RIOD FOR 2001 THROUGH 2003 . THE REQUES T SHALL INCLUD E BOTH OF THE FOLLOWI NG:

(i) IN THE EARLY REDUCTIO N CREDIT REQUES T, THE OXIDES OF NI TROG EN AUTHORI ZED ACCO UN T REP RESEN TATIVE MAY REQUES T EARLY REDUCTIO N CREDITS FOR THE OZONE CONTROL PE RIOD IN AN AMOUN T EQUAL TO THE UNI T’S HE AT IN PU T FOR THE OZONE CONTROL PE RIOD , MULTI PLIED BY THE DIFFE REN CE BETWEEN THE RATES IN BOT H OF THE FOLLOWI NG PROVISIONS :

(A) THE OXIDES OF NI TROG EN EMISSIO N LIMIT REQUIRED BY MIC HIGAN’S STATE IMPLEMEN TATIO N PLAN, OTHE RWIS E REQUI RED BY THE CLEAN AIR ACT, OR 0.25 POUN DS PE R MILLIO N BTU PE R HOUR, WHICHE VER IS MOST STRING EN T.

(B) THE UNI T’S ACTUAL OXIDES OF NI TROG EN EMISSIO N RATE FOR THE OZONE CONTROL PE RIOD , WHICH MUS T BE LOWER THAN THE RATE USE D IN SUB PARAGRAPH (A) OF THIS PARAGRAPH AND LESS THAN 80 % OF THE ACTUAL 2000 OZONE CONTROL PE RIOD OXIDES OF NI TROG EN EMISSIO N RATE, DIVIDED BY 2,000 POUN DS PE R TON, AND ROUN DED TO THE NE AREST TON.

(ii) THE EARLY REDUCTIO N CREDIT REQUES T SHALL BE SUBMITT ED, IN A FORMAT SPE CIFIED BY THE DEP ARTM EN T, BY OCTOB ER 31 OF THE YEAR IN WHICH THE OXIDES OF NI TROG EN EMISSIO N RATE REDUCTIO NS ON WHICH THE REQUES T IS BASED ARE MADE OR A LATER DATE APP ROVED BY THE DEP ARTM EN T.

(g) THE DEP ARTMEN T SHALL ALLOC ATE OXIDES OF NI TROG EN ALLOW ANCES TO OXIDES OF NITROG EN BUDGET UNI TS MEE TING THE REQUIREMEN TS OF THIS SUBDI VISION AND COVERED BY EARLY REDUCTIO N REQUES TS MEE TING THE REQUI REMEN TS OF SUBDI VISION (F)(II) OF THIS SUBRUL E, IN ACCORD ANCE WITH ALL OF THE FOLLOWI NG PROCEDURES:

(i) UP ON RECEIPT OF EACH EARLY REDUCTIO N CREDIT REQUES T, THE DEP ARTMEN T SHALL ACCEP T THE REQUES T ONLY IF THE REQUI REMEN TS OF SUBDI VISIONS (B) THROUGH (D) AND (F)(II) OF THIS SUBRUL E ARE MET AND, IF THE REQUES T IS ACCEP TED, SHALL MAKE ANY NE CESSARY ADJ US TMEN TS TO THE REQUES T TO EN SUR E THAT THE AMOUN T OF THE EARLY REDUCTIO N CREDITS REQUES TED MEE TS THE REQUI REMEN T OF SUBDI VISIONS (B) THROUGH (D) OF THIS SUBRUL E.

(ii) IF THE COMPLIANCE SU PP LEMEN T POOL HAS AN AMOUN T OF OXIDES OF NI TROG EN ALLOW ANCES EQUAL TO OR GREATER THAN THE NU MBER OF EARLY REDUCTIO N CREDITS IN ALL ACCEP TED EARLY REDUCTIO N CREDIT REQUES TS FOR 2001 THROUGH 2003 , AS ADJ USTED UN DER PARAGRAPH (I) OF THIS SUBDI VISION , THEN THE DEP ARTMEN T SHALL ALLOC ATE TO EACH OXIDES OF NI TROG EN BUDGET UNI T COVERED BY THE ACCEP TED REQUES TS

1 ALLOW ANCE FOR EACH EARLY REDUCTIO N CREDIT REQUES TED, AS ADJ USTED UN DER PARAGRAPH (I) OF THIS SUBDI VISION .

(iii) IF THE COMPLIANCE SU PP LEMEN T POOL HAS AN AMOUN T OF OXIDES OF NI TROG EN ALLOW ANCES LESS THAN THE NU MBER OF EARLY REDUCTIO N CREDITS IN ALL ACCEP TED EARLY REDUCTIO N CREDIT REQUES TS FOR 2001 THROUGH 2003 , AS ADJ USTED UN DER PARAGRAPH (I) OF THIS SUBDI VISION , THEN THE DEP ARTMEN T SHALL ALLOC ATE OXIDES OF NI TROG EN ALLOW ANCES TO EACH OXIDES OF NI TROG EN BUDGET UNI T COVERED BY THE ACCEP TED REQUES TS ACCORDI NG TO THE FOLLOWI NG FORMULA:

A UNI T’S ALLOC ATED EARLY REDUCTIO N CREDITS EQUALS ((UNI T’S ADJ US TED EARLY REDUCTIO N CREDITS ) DIVIDED BY (TOTAL ADJ US TED EARLY REDUCTIO N CREDITS REQUES TED BY ALL UNI TS)) TIM ES (AVAILABLE OXIDES OF NI TROG EN ALLOW ANCES FROM THE COMPLIANCE SU PP LEMEN T POOL), WHE RE :

(A) UNI T’S ADJ US TED EARLY REDUCTIO N CREDITS IS THE NU MBER OF EARLY REDUCTIO N CREDITS FOR THE UNI T FOR 2001 THROUGH 2003 IN ACCEP TED EARLY REDUCTIO N CREDIT REQUES TS, AS ADJ US TED UN DER PARAGRAPH (I) OF THIS SUBDI VISION .

(B) TOTAL ADJ US TED EARLY REDUCTIO N CREDITS REQUES TED BY ALL UNI TS IS THE NU MBER OF EARLY REDUCTIO N CREDITS FOR ALL UNI TS FOR 2001 THROUGH 2003 IN ACCEP TED EARLY REDUCTIO N CREDIT REQUES TS, AS ADJ USTED UN DER PARAGRAPH (I) OF THIS SUBDI VISION .

(C) AVAILABLE OXIDES OF NI TROG EN ALLOW ANCES FROM THE COMPLIANCE SU PP LEMEN T POOL IS THE NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES IN THE COM PLIANCE SU PP LEMEN T POOL AND AVAILABLE FOR EARLY REDUCTIO N CREDITS FOR 2001 THROUGH 2003 .

(h) ) BY MAY 31 , 2004 , THE DEP ARTMEN T SHALL SUBMIT , TO THE UNI TED STATES EN VIRONM EN TAL PROTECTIO N AGEN CY, THE ALLOC ATIO NS OF OXIDES OF NI TROG EN ALLOW ANCES DETERMI NE D UN DER SUBDI VISION (G) OF THIS SUBRUL E. THE UNI TED STATES EN VIRONM EN TAL PROT ECTIO N AGEN CY WILL RECORD THE ALLOC ATIO NS TO THE EXTEN T THAT THE Y ARE

CONSIS TEN T WITH THE REQUIREMEN TS OF SUBDI VISIONS (B) THROUGH (G) OF THIS SUBRUL E.

(i) OXIDES OF NI TROG EN ALLOW ANCES RECORD ED UN DER SUBDI VISION (G) OF THIS SUBRUL E MAY BE DEDUCTED FOR COMPLIANCE UN DER 40 C.F.R.

§96.54(B) THROUGH (F) FOR THE OZONE CONTROL PE RIODS IN 2004 OR 2005 . NOTWIT HSTANDING 40 C.F.R. §96 .55 (A), THE UNI TED STATES EN VIRONM EN TAL PROTECTIO N AGEN CY WILL DEDUCT AS RETIR ED ANY OXIDES OF NI TROG EN ALLOW ANCE WHICH IS RECORD ED UN DER SUBDI VISION (g) OF THIS SUBRUL E AND WHICH IS NOT DEDUCTED FOR COMPLIANCE IN ACCORD ANCE WITH 40

C.F.R. §96.54(B) THROUGH (F) FOR THE OZONE CONTROL PE RIOD IN 2004 OR 2005 .

(j) OXIDES OF NI TROG EN ALLOW ANCES RECORD ED UN DER SUBDI VISION (G) OF THIS SUBRUL E ARE TREATED AS BANKED ALLOW ANCES IN 2005 FOR THE PU RPOSES OF §96.55(A) AND (B).

(k) SOURC ES THAT RECEIVE CREDIT ACCORDI NG TO THE REQUI REMEN TS OF THIS RULE MAY TRADE THE CREDIT TO OTHE R SOURC ES OR PE RSO NS ACCORDI NG TO THE PROVISIONS IN THE TRADING PROGR AM.

TITL E 40 C.F.R., PART 96 , IS ADOPTED BY REFE REN CE IN R 336 .1803 .

(3) THE TOTAL NU MBER OF OXIDES OF NI TROG EN ALLOW ANCES AVAILABLE FROM THE COMPLIANCE SU PP LEMEN T POOL SHALL NOT BE MORE THAN 9,907 TONS OF OXIDES OF NITROG EN . ANY OXIDES OF NITROG EN ALLOWANCES THAT REMAIN IN THE COM PLIANCE SU PP LEMEN T POOL AFTER THE 2005 OZONE CONTROL PE RIOD SHALL BE RETIR ED.

R 336 .1817 EMISS ION LIMITATIO NS AND RES TRICTIO NS FOR P ORTLAND CEMEN T KILNS .

RULE 817 . (1) AS USE D IN THIS RULE:

(a) ) "CLI NKER" MEANS THE PRODUCT OF A PORTL AND CEMEN T KIL N FROM WHICH FINIS HE D CEMEN T IS MANUF ACTURED BY MILLI NG AND GRI NDING.

(b) “LONG DRY KIL N” MEANS A PORTL AND CEMEN T KIL N THAT EMPLOYS NO PREHE ATING OF THE FEE D. THE INL ET FEE D TO THE KIL N IS DRY.

(c) “LONG WET KIL N” MEANS A PORTL AND CEMEN T KIL N THAT EMPLOYS NO PREHE ATING OF THE FEE D. THE INL ET FEE D TO THE KIL N IS A SLURR Y.

(d) “LOW OXIDES OF NI TROG EN BURNE RS” MEANS A TYPE OF CEMEN T KIL N BURNE R SYSTEM DESIGN ED TO LOWER OXIDES OF NI TROG EN FORMATIO N BY CONTROLLI NG FLAME TURBULEN CE, DELAYING FUE L/AIR MIXING AND ESTABLIS HING FUE L-RIC H ZONES FOR INITI AL COMB US TING, THAT FOR FIRING OF SOLID FUE L BY A KIL N’S MAIN BURNE R INCLUD ES AN INDIR ECT FIRING SYSTEM OR COM PARABLE TECHN IQU E FOR THE MAIN BURNE R TO LOWER THE AMOUN T OF PRIM ARY COMB US TIO N AIR SU PP LIED WITH THE PU LVERIZED FUE L. IN AN INDIR ECT FIRING SYSTEM, 1 AIR STR EAM IS USE D TO CONVEY PU LVERIZED FUE L FROM THE GRI NDING EQUIP MEN T AND ANOTHE R AIR STREAM IS USE D TO SU PP LY PRIM ARY COMB US TIO N AIR TO THE KIL N BURNE R WITH THE PU LVERIZED FUE L, WITH INT ERMEDIATE STOR AGE OF THE FUE L.

(e) “MALFUN CTIO N” MEANS ANY SUDD EN , IN FREQUEN T, AND NOT REASON ABLY PREVEN TABLE FAILUR E OF AIR POLL UTIO N CONTROL EQUIP MEN T, PROCESS EQUIP MEN T, OR A PROCESS TO OPE RATE IN A NORMAL OR USU AL MANNE R. FAILUR ES THAT ARE CAUSE D IN PART BY POOR MAINT EN ANCE OR CARELESS OPE RATIO N ARE NOT MALFUN CTIO NS .

(f) “MID -KIL N FIRING ” MEANS THE SECONDARY FIRING IN A KIL N SYSTEM BY IN J ECTI NG SOLID FUE L AT AN INT ERMEDIATE POINT IN THE KIL N SYSTEM USIN G A SPE CIALLY DESIGN ED FEE D IN J ECTIO N MECHANIS M FOR THE PU RPOSE OF DECREASING OXIDES OF NITROG EN EMISSIO NS THROUGH BOTH OF THE FOLLOWI NG:

(i) BURNIN G PART OF THE FUE L AT A LOWE R TE MPE RATURE.

(ii) REDUCING CONDITIO NS AT THE FUE L IN J ECTIO N POINT THAT MAY DESTRO Y SOME OF THE OXIDES OF NITROG EN FORMED UPS TREAM IN THE KIL N SYSTEM.

(g) “OZONE CONTROL PE RIOD ” MEANS THE PE RIOD BEGINNIN G MAY 1 OF A YEAR AND EN DING ON SEP TEMBER 30 OF THE SAME YEAR, INCLUSI VE.

(h) ) “PORTL AND CEMEN T” MEANS A HYDRAULIC CEMEN T PRODUCED BY PU LVERIZING CLI NKER CONSIS TING ESSEN TIALLY OF HYDRAULIC CALCI UM SILIC ATES, USU ALLY CONTAINING 1 OR MORE OF THE FORMS OF CALCI UM SUL FATE AS AN INT ERGRO UN D ADDITIO N.

(i) “PORTL AND CEMEN T KIL N” MEANS A SYSTEM, INCLUDING ANY SOLID , GASEOUS, OR LIQ UID FUE L COMB USTIO N EQUIP MEN T, USE D TO CALCI NE AND FU SE RAW MATERIALS, INCLUDING LIM ESTON E AND CLAY, TO PRODUCE PORTL AND CEMEN T CLI NKER.

(j) “PRECALCI NE R KIL N” MEANS A KIL N WHE RE THE FEE D TO THE KIL N SYSTEM IS PREHE ATED IN CYCLO NE CHAMBERS AND A SECOND BURNE R IS USE D TO CALCI NE MATERIAL IN A SEP ARATE VESS EL ATTACHE D TO THE PREHE ATER BEF ORE THE FIN AL FU SION IN A KIL N THAT FORMS CLI NKER.

(k) “PREHE ATER KIL N” MEANS A PORTL AND CEMEN T KIL N WHE RE THE FEE D TO THE KIL N SYSTEM IS PREHE ATED IN CYCLONE CHAMBERS BEF ORE THE FIN AL FU SION IN A KIL N THAT FORMS CLI NKER.

(l) “SHU TDOW N” MEANS THE CESSATIO N OF OPE RATIO N OF A PORTL AND CEMEN T KIL N FOR ANY PU RPOSE.

(m) “START-UP ” MEANS THE SETTI NG IN OPE RATIO N OF A PORTL AND CEMEN T KIL N FOR ANY PU RPOSE.

(2) THIS RULE APP LIES TO ANY PORTL AND CEMEN T KIL N LOCATED IN THE MIC HIGAN FIN E GRID ZONE AS DEF IN ED IN R 336 .1803 , WITH PROCESS RATES EQUAL TO OR GREATER THAN THE FOLLOWI NG:

(a) ) LONG DRY KIL NS OF 12 TONS PE R HOUR.

(b) LONG WET KIL NS OF 10 TONS PE R HOUR.

(d) PRECALCI NE R AND COMBI NE D PREHE ATER AND PRECALCI NE R KIL NS OF 22 TONS PE R HOUR.

(3) A UNI T SUB J ECT TO THIS RULE AND A NE W SOURC E PE RFORMANCE STANDARD OR A NATIO NAL EMISSIO N STANDARD FOR HAZARDOUS AIR

POLLUTANTS SHALL COMPLY WITH THE LIMIT ATIO NS AND REQUI REMEN TS OF THIS RULE OR THE LIMIT ATIO NS AND REQUI REMEN TS OF THE NE W SOURC E PE RFORMANCE STANDARD OR THE NATIO NAL EMISSIO N STANDARD FOR HAZARDOUS AIR POLLUTANTS, WHICHE VER IS MORE STRING EN T.

(4) THE REQUI REMEN TS OF THIS RULE SHALL NOT APP LY TO A UNI T THAT IS PARTICI PATING IN THE OXIDES OF NI TROG EN BUDGET TRADING PROGR AM UN DER R 336 .1802 THROUGH R 336 .1816 . THE REQUIREMEN TS OF SUBRUL E (5) OF THIS RULE SHALL NOT APP LY DURING START-UP , SHU TDOW N, AND MALFUN CTIO N PE RIODS .

(5) AFTER MAY 31 , 2004 , AN OWNE R OR OPE RATOR OF A PORTL AND CEMEN T KIL N SUB J ECT TO THE PROVISIONS OF THIS RULE SHALL NOT OPE RATE THE KIL N UN TIL SEP TEMBER 30 , 2004 , AND ANY SUBS EQUEN T YEAR FROM MAY 1 THROUGH SEP TEMBER 30 , UN LESS THE OWNE R OR OPE RATOR COMPLIES WITH 1 OF THE FOLLOWI NG REQUI REMEN TS DURING THE APP LIC ABLE MAY THROUGH SEP TEMBER TIM E PE RIOD EACH YEAR:

(a) ) OPE RATIO N OF THE KIL N WITH 1 OF THE FOLLOWI NG:

(i) LOW OXIDES OF NITROG EN BURNE RS.

(ii) MID -KIL N FIRING .

(b) A LIMIT ON THE AMOUN T OF OXIDES OF NI TROG EN EMITT ED WHEN AVERAGED OVER THE OZONE CONTROL PE RIOD AS FOLLOWS :

(i) FOR LONG WET KIL NS, 6 POUN DS OF OXIDES OF NITROG EN PE R TON OF CLI NKER PRODUCED.

(ii) FOR LONG DRY KIL NS, 5.1 POUN DS OF OXIDES OF NITROG EN PE R TON OF CLI NKER PRODUCED.

(iii) FOR PREHE ATER KIL NS, 3.8 POUN DS OF OXIDES OF NITROG EN PE R TON OF CLI NKER PRODUCED.

(iv) F OR P RE CALCI NE R AND COMBI NE D P REHE ATE R AND P RE CALCI NE R KIL NS, 2.8 POUN DS OF OXIDES OF NITROG EN PE R TON OF CLI NKER PRODUCED.

(c) INST ALLATIO N AND USE OF ALTERNATIVE CONTROL TECHN IQU ES THAT MAY INCLUD E KIL N SYSTEM MODI FICATIO NS, SUC H AS CONVERSIO NS TO SEMI-DRYING PROCESSING , SUB J ECT TO DEP ARTMEN T AND UNI TED STATES EN VIRONM EN TAL PROT ECTIO N AGEN CY APP ROVAL, THAT ACHIEVE A 30 % EMISSIO NS DECREASE FROM BASELINE OZONE CONTROL PE RIOD EMISSIO NS . BASELINE EMISSIO NS SHALL BE THE AVERAGE OF THE SUM OF OZONE CONTROL PE RIOD EMISSIO NS FOR THE 2 HIGHE ST EMITTI NG YEARS FROM 1995 THROUGH 2000 .

(6) THE OWNE R OR OPE RATOR OF ANY PORTL AND CEMEN T KIL N PROPOSI NG TO INST ALL AND USE AN ALTERNATIVE CONTROL TECHN IQU E UN DER SUBRUL E (5)(C) OF THIS RULE SHALL SUBMIT THE PROPOSED ALTERNATIVE CONTROL TECHN IQU E AND CALCULATIO N OF BASELINE EMISSIO NS WITH SU PP ORTI NG DOCUMEN TATIO N TO THE DEP ARTMEN T AND THE UNI TED STATES EN VIRONM EN TAL PROT ECTIO N AGEN CY FOR APP ROVAL BY MAY 31 , 2003 . THE DEP ARTM EN T SHALL INCLUD E THE APP ROVED PLAN WITH EMISSIO N LIMIT ATIO NS IN THE SOURC E’S OPE RATING PE RMIT .

(7) OZONE CONTROL PE RIOD EMISSIO NS SHALL BE DETERMI NE D USIN G 1 OF THE FOLLOWI NG METHODS :

(a) ) THE AVERAGE OF THE EMISSIO N FACTORS FOR THE TYPE OF KIL N FROM THE "COMPILATIO N OF AIR POLLUTANT EMISSIO N FACTORS . VOLUME 1. STATIO NARY POINT AND AREA SOURC ES," PB95 -196028 , AND THE "ALTERNATIVE CONTROL TECHN IQU ES DOCUMEN T: NOX EMISSIO NS FROM CEMEN T MANUF ACTURING," PB94 -183522 . THE SE DOCUMEN TS ARE ADOPTED BY REFE REN CE IN THIS RULE. COPIES MAY BE INS PE CTED AT THE LANSIN G OFF ICE OF THE AIR QUALIT Y DIVISION OF THE DEP ARTMEN T OF EN VIRONM EN TAL QUALIT Y. COPIES MAY BE OBTAIN ED FROM THE AIR QUALIT Y DIVISION , DEP ARTMEN T OF EN VIRONM EN TAL QUALIT Y, 106 WEST ALLEGAN STREE T, P.O. BOX 30260 -7760 , LANSIN G, MIC HIGAN 48909 , OR FROM THE NATIO NAL TECHN ICAL IN FORMATIO N SERVICE, U.S. DEP ARTMEN T OF COMM ERCE, SPRINGFIELD, VA 22161 , AT A COST AT THE TIM E OF ADOPTIO N OF THIS RULE OF $278 .00 AND $41 .00 , RESPE CTI VELY.

(b) THE SIT E-SPE CIFIC EMISSIO N FACTOR DEVELOPE D FROM REP RESEN TATIVE EMISSIO NS TESTING , PU RSUANT TO 40 C.F.R. PART 60 , APPEN DIX A, METHODS 7, 7A, 7C, 7D, OR 7E, BASED ON A RANGE OF TYPICAL OPE RATING CONDITIO NS . THE OWNE R OR OPE RATOR SHALL ESTABLIS H THAT THE SE OPE RATING CONDITIO NS ARE REP RESEN TATIVE, SUB J ECT TO APP ROVAL BY THE DEP ARTMEN T, AND SHALL CERTI FY THAT THE EMISSIO NS TESTING IS BEING CONDUCTED UN DER REP RESEN TATIVE CONDITIO NS . THE PROVISIONS OF 40 C.F.R. PART 60 ARE ADOPTED BY REFE REN CE IN R 336 .1801 .

(c) AN ALTERNATE METHOD FOR ESTABLIS HING THE EMISSIO N FACTORS , WHEN SUBMITT ED WITH SU PP ORTI NG DATA TO SUBST ANTIATE THE EMISSIO N FACTORS AND APP ROVED BY THE DEP ARTMEN T AND THE UNI TED STATES EN VIRONM EN TAL PROT ECTIO N AGEN CY AS SET FORT H IN SUBRUL E (5)(C) OF THIS RULE.

(8) BEGINNIN G MAY 31, 2004 , AND EACH OZONE CONTROL PE RIOD THE REAFTER, ANY OWNE R OR OPE RATOR OF A PORTL AND CEMEN T KIL N SUB J ECT TO THIS RULE SHALL DO EITHE R OF THE FOLLOWI NG:

(a) ) COM PLETE AN INITI AL PE RFORMANCE TEST AND SUBS EQUEN T ANNU AL TESTING DURING THE OZONE CONTROL PE RIOD OF EACH YEAR CONSIS TEN T WITH THE REQUI REMEN TS OF 40 C.F.R. PART 60 , APPEN DIX A, METHODS 7, 7A , 7C, 7D, OR 7E OR AN ALTERNATE METHOD APP ROVED PU RSUANT TO SUBRUL E (5)(C) OF THIS RULE.

(b) MONITOR OXIDES OF NITROG EN EMISSIO NS DURING THE OZONE CONTROL PE RIOD OF EACH YEAR USIN G A CONTINU OUS EMISSIO NS MONITORI NG SYSTEM IN ACCORD ANCE WITH 40 C.F.R., PART 60, SUB PART A, AND 40 C.F.R., P ART 60, APPEN DIX B, AND COMPLY WITH THE QUALIT Y ASSUR ANCE PROCEDURES IN APPEN DIX F, OR 40 C.F.R., PART 75 , AND ASSOCI ATED APPEN DICI ES, AS APP LIC ABLE, AND IN A MANNE R ACCEP TABLE TO THE DEP ARTM EN T.

(9) BEGINNIN G MAY 31, 2004 , AND EACH OZONE CONTROL PE RIOD THE REAFTER, ANY OWNE R OR OPE RATOR OF A PORTL AND CEMEN T KIL N

SUB J ECT TO THIS RULE SHALL COMPLY WITH BOTH OF THE FOLLOWI NG RECORDK EEP ING AND REP ORTI NG REQUI REMEN TS:

(a) ) AN OWNE R OR OPE RATOR SHALL CREATE AND MAINT AIN RECORDS THAT INCLUD E, BUT ARE NOT LIMIT ED TO BOTH OF THE FOLLOWI NG:

(i) ALL ROUTINE AND NONROUTINE MAINT EN ANCE, REP AIR, OR REP LACEMEN T PE RFORM ED ON THE DEVICE OR DEVICES.

(ii) THE DATE, TIM E, AND DURATIO N OF ANY START-UP , SHU TDOWN, OR MALFUN CTIO N IN THE OPE RATIO N OF A KIL N OR THE DEVICE OR DEVICES.

(b) AN OWNE R OR OPE RATOR SHALL CREATE AND MAINT AIN RECORDS THAT INCLUD E, BUT ARE NOT LIMIT ED TO, ALL OF THE FOLLOWI NG:

(i) THE EMISSIO NS, IN POUN DS OF OXIDES OF NITROG EN PE R TON OF CLI NKER PRODUCED FROM EACH AFFE CTED PORTL AND CEMEN T KIL N.

(ii) THE DATE, TIM E, AND DURATIO N OF ANY START-UP , SHU TDOWN, OR MALFUN CTIO N IN THE OPE RATIO N OF ANY OF THE CEMEN T KIL NS OR THE EMISSIO NS MONI TORI NG EQUIP MEN T.

(iii) THE RESULTS OF ANY PE RFORMANCE TESTING .

(iv) IF A UNI T IS EQUIPPE D WITH A CONTINU OUS EMISSIO NS MONI TORI NG SYSTEM, THE FOLLOWI NG IN FORMATIO N:

(A) IDEN TIFICATIO N OF TIM E PE RIODS DURING WHICH OXIDES OF NI TROG EN STANDARDS ARE EXCEE DED, THE REASON FOR THE EXCEE DANCE, AND ACTIO N TAKEN TO CORR ECT THE EXCEE DANCE AND TO PREVEN T SIMIL AR FU TURE EXCEE DANCES.

(B) IDEN TIFICATIO N OF THE TIM E PE RIODS FOR WHICH OPE RATING CONDITIO NS AND POLLUTANT DATA WERE NOT OBTAIN ED, INCLUDING REASONS FOR NOT OBTAINING SU FF ICI EN T DATA AND A DESCRI PTIO N OF CORR ECTI VE ACTIO NS TAKEN .

(v) ALL RECORDS REQUI RED TO BE PRODUCED OR MAINT AIN ED SHALL BE RETAIN ED ON SIT E FOR A PE RIOD OF 5 YEARS. THE RECORDS SHALL BE MADE AVAILABLE TO THE DEP ARTM EN T OR THE UNI TED STATES EN VIRONM EN TAL PROTECTIO N AGEN CY UP ON REQUES T.

(10) ) ANY OWNE R OR OPE RATOR OF A PORTL AND CEMEN T KIL N SUB J ECT TO THIS RULE SHALL COMPLY WITH BOTH OF THE FOLLOWI NG REP ORTI NG REQUI REMEN TS:

(a) ) BY MAY 31 , 2004 , SUBMIT TO THE DEP ARTMEN T ALL OF THE FOLLOWI NG IN FORMATIO N:

(i) THE IDEN TIFICATIO N NU MBER AND TYPE OF EACH UNI T SUB J ECT TO THIS RULE .

(ii) THE NAME AND ADDRESS OF THE PLANT WHE RE THE UNI T IS LOCATED.

(iii) THE NAME AND TELEPH ONE NU MBER OF THE PE RSO N RESPONSI BLE FOR DEMONS TRATING COMPLIANCE WITH THIS RULE.

(iv) ANTICI PATED CONTROL MEASUR ES.

(b) SUBMIT A REP ORT DOCUMEN TING FOR THAT UNI T THE TOTAL OXIDES OF NI TROG EN EMISSIO NS AND THE AVERAGE OXIDES OF NI TROG EN EMISSIO N RATE FOR THE OZONE CONTROL PE RIOD OF EACH YEAR TO THE DEP ARTMEN T BY OCTOB ER 31 , BEGINNIN G IN 2004 AND EACH YEAR THE REAFTER.

R 336 .1818 EMISS ION LIMITATIO NS AND RES TRICTIO NS FOR INTERN AL COMBUS TION EN GINES .

RULE 818 . (1) AS USE D IN THIS RULE:

(a) ) "DIESEL EN GINE " MEANS A COMPRESSION IGNIT ED 2- OR 4-STROK E EN GINE IN WHICH LIQ UI D FUE L IN J ECTED INTO THE COMB US TIO N CHAMBER IGNIT ES WHEN THE AIR CHARGE HAS BEEN COM PRESS ED TO A TEMPE RATURE SU FF ICI EN TLY HIGH FOR AUTO-IGNITION .

(b) "DUAL FUE L EN GINE " MEANS A COMPRESSION IGNIT ED STATIO NARY INT ERNAL COMB US TIO N EN GINE THAT IS BURNIN G LIQ UI D FUE L AND GASEOUS FUE L SIMULT ANE OUSLY.

(c) "EMERGEN CY STANDBY EN GINE " MEANS AN INT ERNAL COMB US TIO N EN GINE USE D ONLY WHEN NORMAL POWER LINE OR NATURAL GAS SERVICE FAILS , OR FOR THE EMERGEN CY PU MPING OF WATER FOR EITHE R FIRE PROTECTIO N OR FLOOD RELIEF . AN EMERGEN CY STANDBY EN GINE SHALL NOT BE OPE RATED TO SU PP LEMEN T A PRIM ARY POWER SOURC E WHEN THE LOAD CAPACIT Y OR RATING OF THE PRIM ARY POWER SOURC E HAS BEEN EITHE R REACHE D OR EXCEE DED.

(d) "EN GINE RATING" MEANS THE OUTPU T OF AN EN GINE AS DETERMI NE D BY THE EN GINE MANUF ACTURER AND LIST ED ON THE NAMEP LATE OF THE UNI T, REGARDLESS OF ANY DERATING.

(e) "HIGHE R HE ATING VALUE " MEANS THE TOTAL HE AT LIB ERATED PE R MASS OF FUE L BURNE D (BTU PE R POUN D), WHEN FUE L AND DRY AIR AT STANDARD CONDITIO NS UN DERGO COMPLETE COMB US TIO N AND ALL RESULT ANT PRODUCTS ARE BROUGHT TO THE IR STANDARD STATES AT STANDARD CONDITIO NS . IF CERTI FICATIO N OF THE HIGHE R HE ATING VALUE IS NOT PROVIDED BY THE THIRD PARTY FUE L SU PP LIER, IT SHALL BE DETERMI NE D BY 1 OF THE FOLLOWI NG TEST METHODS :

(i) ASTM D2015 -85 FOR SOLID FUE LS.

(ii) ASTM D240 -87 OR ASTM D2382 -88 FOR LIQ UID HYDROC ARBON FUE LS.

(iii) ASTM D1826 -88 OR ASTM D1945 -81 IN CONJ UN CTIO N WITH ASTM D3588 -89 FOR GASEOUS FUE LS.

THE SE METHODS ARE SPE CIFIED AT 40 C.F.R. §52 .3002 . THE PROVISIONS OF 40 C.F.R. §52 .3002 ARE ADOPTED BY REFE REN CE IN THIS RULE. A COPY OF THE REGULATIO N MAY BE INS PE CTED AT THE LANSIN G OFF ICE OF THE AIR QUALIT Y DIVISION OF THE DEP ARTMEN T OF EN VIRONM EN TAL QUALIT Y. COPIES OF THE REGULATIO N MAY BE OBTAIN ED FROM THE AIR QUALIT Y DIVISION , DEP ARTMEN T OF EN VIRONM EN TAL QUALIT Y, 106 WEST ALLEGAN STREE T, P.O. BOX 30260 , LANSIN G, MIC HIGAN 48909 -7760 , OR FROM THE SU PE RINTEN DEN T OF DOCUMEN TS, GOVERNMEN T PRINTING OFF ICE, P.O. BOX 371954 , PITTSBURG H, PENN SYLVANIA 15250 -7954 , AT A COST AT THE TIM E OF ADOPTIO N OF THIS RULE OF $44 .00 .

(f) "LEAN-BURN EN GINE " MEANS ANY 2- OR 4-STROK E SPARK-IGNIT ED EN GINE THAT IS NOT A RIC H-BURN EN GINE .

(g) "MAINT EN ANCE OPE RATIO N" MEANS THE USE OF AN EMERGEN CY STANDBY EN GINE AND FUE L SYSTEM DURING TESTING , REP AIR, AND ROUTINE MAINT EN ANCE TO VERIFY ITS READINESS FOR EMERGEN CY STANDBY USE .

(h) ) "MALFUN CTIO N" MEANS ANY SUDD EN AND UN AVOID ABLE FAILUR E OF AIR POLLUTIO N CONTROL EQUIP MEN T OR PROCESS EQUIP MEN T OR OF A PROCESS TO OPE RATE IN A NORMAL OR USU AL MANNE R. FAILUR ES THAT ARE CAUSE D EN TIR ELY OR IN PART BY POOR MAINT EN ANCE, CARELESS OPE RATIO N, OR ANY OTHE R PREVEN TABLE UPSE T CONDITIO N OR PREVEN TABLE EQUIP MEN T BREAKDOW N SHALL NOT BE CONSI DERED MALFUN CTIO NS.

(i) "OUTPU T" MEANS THE SHAFT WORK OUTPU T FROM AN EN GINE , PLUS THE ENE RGY RECLAIMED BY ANY USEFU L HE AT RECOVERY SYSTEM.

(j) "PE AK LOAD" MEANS THE MAXIMUM INST ANTANE OUS OPE RATING LOAD.

(k) "PE RMITT ED CAPACIT Y FACTOR " MEANS THE ANNU AL PE RMITT ED FUE L USE DIVIDED BY THE MANUF ACTURER’S SPE CIFIED MAXIMUM FUE L CONSU MPTIO N TIM ES 8,760 HOURS PE R YEAR.

(l) "RIC H-BURN EN GINE " MEANS A 2- OR 4-STROK E SPARK-IGNIT ED EN GINE WHE RE THE MANUF ACTURER’S ORIGI NAL RECOMM EN DED OPE RATING AIR/FUE L RATIO DIVIDED BY THE STOIC HIOM ETRIC AIR/FUE L RATIO IS LESS THAN OR EQUAL TO 1.1.

(m) "SHU TDOW N" MEANS THE PE RIOD OF TIM E A UNI T IS COOL ED FROM ITS NORMAL OPE RATING TEMPE RATURE TO COLD OR AMBI EN T TEMPE RATURE.

(n) ) "START-UP " MEANS THE PE RIOD OF TIM E A UNI T IS HE ATED FROM COLD OR AMBI EN T TE MPE RATURE TO ITS NORMAL OPE RATING TE MPE RATURE AS SPE CIF IED BY THE MANUF ACTURER.

(o) "STATIO NARY INT ERNAL COMB US TIO N EN GINE " MEANS ANY INT ERNAL COMB US TIO N EN GINE OF THE RECIPROCATING TYPE THAT IS EITHE R ATTACHE D TO A FOUN DATIO N AT A FACILIT Y OR IS DESIGN ED TO BE CAPABLE OF BEING CARRI ED OR MOVED FROM ONE LOCATIO N TO ANOTHE R AND REMAINS AT A SINGL E SIT E AT A BUI LDI NG, STRUCTUR E, FACILIT Y, OR INST ALLATIO N FOR MORE THAN 12 CONSE CUTIVE MONTHS. ANY EN GINE OR EN GINES THAT REP LACE AN EN GINE AT A SIT E THAT IS INT EN DED TO PE RFORM THE SAME OR SIMIL AR FUN CTIO N AS THE EN GINE REP LACED IS INCLUD ED IN CALCULATING THE CONSE CUTIVE TIM E PE RIOD . NONROAD EN GINES AND EN GINES USE D SOLELY FOR COMPE TITIO N ARE NOT STATIO NARY INT ERNAL COMB US TIO N EN GINES .

(p) "STOIC HIOM ETRIC AIR/FUE L RATIO " MEANS THE AIR/FUE L RATIO WHE RE ALL FUE L AND ALL OXYGEN IN THE AIR/FUE L MIXTURE WILL BE CONSU MED.

(q) "UNI T" MEANS ANY DIESEL, LEAN-BURN, OR RIC H-BURN STATIO NARY INT ERNAL COMB US TIO N EN GINE AS DEF IN ED IN THIS RULE.

(2) THIS RULE APP LIES TO ANY OF THE FOLLOWI NG INT ERNAL COMB US TIO N EN GINES LOCATED IN THE MIC HIGAN FIN E GRID ZONE AS DEF IN ED IN R 336 .1803 OF THE SE RULES:

(a) ) A RIC H BURN STATIO NARY INT ERNAL COMB US TIO N EN GINE RATED AT EQUAL TO OR GREATER THAN 2,400 BREAK HORS EP OWER.

(b) A LEAN-BURN STATIO NARY INT ERNAL COMB US TIO N EN GINE RATED EQUAL TO OR GREATER THAN 2,400 BREAK HORS EP OWER.

(d) A DUAL-FUE L STATIO NARY INT ERNAL COMB US TIO N EN GINE RATED AT EQUAL TO OR GREATER THAN 4,400 BRAKE HORS EP OWER.

(3) AFTER MAY 31 , 2004 , AN OWNE R OR OPE RATOR OF A UNI T SUB J ECT TO THE PROVISIONS OF THIS RULE SHALL NOT OPE RATE THE UNI T UN TIL SEP TEMBER 30 , 2004 , AND ANY SUBS EQUEN T YEAR FROM MAY 1 THROUGH SEP TEMBER 30 UN LESS THE OWNE R OR OPE RATOR COMPLIES WITH THE FOLLOWI NG REQUI REMEN TS DURING THE APP LIC ABLE MAY THROUGH SEP TE MBE R TIM E PE RIOD EACH YEAR:

AN OWNE R OR OPE RATOR OF A STATIO NARY INT ERNAL COMB US TIO N EN GINE SHALL NOT CAUSE TO BE DISC HARGED INTO THE ATMOS PHE RE ANY GASES THAT CONTAIN OXIDES OF NI TROG EN IN EXCESS OF THE FOLLOWI NG APP LIC ABLE LIMIT , EXPRESSED AS NI TROG EN DIO XIDE CORR ECTED TO 15 % PARTS PE R MILLIO N BY VOLUME STACK GAS OXYGEN ON A DRY BASIS , AVERAGED OVER A ROLLI NG 30 -DAY PE RIOD :

(a) ) RIC H-BURN, = 2400 BREAK HORS EP OWER: 110 PARTS PE R MILLIO N BY VOLUME.

(b) LEAN-BURN, =2400 BREAK HORS EP OWER: 125 PARTS PE R MILLIO N BY VOLUME.

(d) DUAL FUE L, =4400 BREAK HORS EP OWER: 125 PARTS PE R MILLIO N BY VOLUME.

(e) EACH EMISSIO N LIMIT EXPRESSED IN SUBDI VISIONS (A) THROUGH (D) OF THIS SUBRUL E MAY BE MULTI PLIED BY X, WHE RE X EQUALS THE EN GINE EFF ICI EN CY "E" DIVIDED BY A REFE REN CE EFF ICI EN CY OF 30 %. EN GINE EFF ICI EN CY "E" SHALL BE DETERMI NE D USIN G 1 OF THE METHODS SPE CIFIED IN SUBDI VISION (F) THIS SUBRUL E, WHICHE VER PROVIDES A HIGHE R VALUE . HOWEVER, EN GINE EFF ICI EN CY "E" SHALL NOT BE LESS THAN 30 %. AN EN GINE THAT HAS AN EFF ICI EN CY LOWER THAN 30 % SHALL BE ASSIGN ED AN EFF ICI EN CY OF 30 %.

(f) EN GINE EFF ICI EN CY “E” SHALL BE DETERMI NE D BY EITHE R OF THE FOLLOWI NG METHODS :

(Engine output)(100)

(i)

E =

WHE RE ENE RGY IN PU T IS DETERMI NE D BY A FUE L MEASURING DEVICE ACCURATE TO ±5 % AND IS BASED ON THE HIGHE R HE ATING VALUE OF THE FUE L. PE RCEN T EFF ICI EN CY "E" SHALL BE AVERAGED OVER 15 CONSE CUTIVE MINU TES AND MEASUR ED AT PE AK LOAD FOR THE APP LIC ABLE EN GINE .

(ii)

(Manufacturers Rated Efficiency (continuous )atLHV )(LHV )

HHV

WHE RE :

LHV = THE LOWER HE ATING VALUE OF THE FUE L; AND HH V = THE HIGHE R HE ATING VALUE OF THE FUE L.

(4) ANY OWNE R OR OPE RATOR OF A UNI T SUB J ECT TO THE PROVISIONS OF THIS RULE SHALL DETERMI NE COMPLIANCE USIN G A CONTINU OUS EMISSIO NS MONI TORI NG SYSTEM WHICH MEE TS THE APP LIC ABLE REQUI REMEN TS OF 40 C.F.R., PART 60 , SUB PART A, AND 40 C.F.R., PART 60 , APPEN DIX B, AND COMPLY WITH THE QUALIT Y ASSUR ANCE PROCEDURES IN APPEN DIX F OF 40 C.F.R., PART 75 , AND ASSOCI ATED APPEN DIC ES, AS APP LIC ABLE, AND IN A MANNE R ACCEP TABLE TO THE DEP ARTM EN T. THE PROVISIONS OF 40 C.F.R., PARTS 60 AND 75 , ARE ADOPTED BY REFE REN CE IN R 336 .1801 .

(5) ANY OWNE R OR OPE RATOR SUB J ECT TO THE PROVISIONS OF SUBRUL E (3) OF THIS RULE SHALL COMPLY WITH ALL OF THE FOLLOWI NG REQUI REMEN TS: (a ) BY MAY 31 , 2004 , SUBMIT TO THE DEP ARTMEN T THE IDEN TIFICATIO N NU MBER AND TYPE OF EACH UNI T SUB J ECT TO THIS RULE, THE NAME AND ADDRESS OF THE PLANT WHE RE THE UNI T IS LOCATED, AND THE NAME AND TELEPH ONE NU MBER OF THE PE RSO N RESPONSI BLE FOR DEMONS TRATING COM PLIANCE WITH THIS RULE.

(b) SUBMIT A REP ORT TO THE DEP ARTM EN T BY OCTOB ER 31 OF EACH YEAR, BEGINNIN G IN 2004 , DOCUMEN TING THE TOTAL OXIDES OF NITROG EN EMISSIO NS FROM MAY 31, 2004 , THROUGH SEP TEMBER 30, 2004 , AND MAY 1 THROUGH SEP TEMBER 30 OF EACH YEAR THE REAFTER FOR THAT UNI T.

(c) EACH OWNE R OR OPE RATOR OF A UNI T SUB J ECT TO THIS RULE AND OPE RATING A CONTINU OUS EMISSIO N MONI TORI NG SYSTEM SHALL SUBMIT AN EXCESS EMISSIO NS AND MONI TORI NG SYSTEM PE RFORMANCE REP ORT, IN ACCORD ANCE WITH THE REQUIREMEN TS OF 40 C.F.R. §§60 .7(C) AND (D).

(6) ANY OWNE R OR OPE RATOR SUB J ECT TO THE PROVISIONS OF SUBRUL E (3) OF THIS RULE SHALL NOT OPE RATE SUC H EQUIP MEN T UN LESS IT IS EQUIPPE D WITH EITHE R OF THE FOLLOWI NG:

(a) ) A CONTINU OUS EMISSIO N MONITORI NG SYSTEM WHICH MEE TS THE APP LIC ABLE REQUI REMEN TS OF 40 C.F.R. PART 60 , SUB PART A, AND 40 C.F.R., PART 60 , APPEN DIX B, AND WHICH COMPLIES WITH THE QUALIT Y ASSUR ANCE PROCEDURES IN APPEN DIX F OR 40 C.F.R., PART 75 , AND ASSOCI ATED APPEN DIC ES, AS APP LIC ABLE, AND IN A MANNE R ACCEP TABLE TO THE DEP ARTMEN T. THE CONTINU OUS EMISSIO N MONI TORI NG SYSTEM SHALL BE USE D TO DEMONS TRATE COM PLIANCE WITH THE APP LIC ABLE EMISSIO N LIMIT .

(b) AN ALTERNATE CALCULATIO N AND RECORDK EEP ING PROC EDURE BASED UP ON ACTUAL EMISSIO NS TESTING AND CORR ELATIO N WITH OPE RATING PARAMETERS. THE INST ALLATIO N, IMPLEMEN TATIO N, AND USE OF SUC H AN ALTERNATE CALCULATIO N AND RECORDK EEP ING PROC EDURE MUS T BE

APP ROVED BY THE DEP ARTMEN T AND THE UNI TED STATES EN VIRONM EN TAL PROTECTIO N AGEN CY, IN WRITING , BEF ORE IMPLEMEN TATIO N.

(7) ANY OWNE R OR OPE RATOR OF A UNI T SUB J ECT TO THIS RULE SHALL MAINT AIN ALL RECORDS NE CESSARY TO DEMONS TRATE COM PLIANCE FOR A PE RIOD OF 2 CALEN DAR YEARS AT THE PLANT AT WHICH THE UNI T IS LOCATED. THE RECORDS SHALL BE MADE AVAILABLE TO THE DEP ARTM EN T UP ON REQUES T. THE OWNE R OR OPE RATOR SHALL MAINT AIN RECORDS OF THE FOLLOWI NG IN FORMATIO N FOR EACH DAY THE UNI T IS OPE RATED:

(a) ) IDEN TIFICATIO N AND LOCATIO N OF EACH EN GINE SUB J ECT TO THE REQUI REMEN TS OF THIS RULE.

(b) CALEN DAR DATE OF RECORD .

(c) THE NU MBER OF HOURS THE UNI T IS OPE RATED DURING EACH DAY, INCLUDING START-UPS , SHU TDOW NS, MALFUN CTIO NS, AND THE TYPE AND DURATIO N OF MAINT EN ANCE AND REP AIRS .

(d) DATE AND RESULTS OF EACH EMISSIO NS INS PE CTIO N.

(e) A SUMM ARY OF ANY EMISSIO NS CORR ECTI VE MAINT EN ANCE TAKEN .

(f) THE RESULTS OF ALL COM PLIANCE TESTS .

(g) IF A UNI T IS EQUIPPE D WITH A CONTINU OUS EMISSIO NS MONI TORI NG SYSTEM, THE FOLLOWI NG IN FORMATIO N:

(i) IDEN TIFICATIO N OF TIM E PE RIODS DURING WHICH OXIDES OF NI TROG EN STANDARDS ARE EXCEE DED, THE REASON FOR THE EXCEE DANCE, AND ACTIO N TAKEN TO CORR ECT THE EXCEE DANCE AND TO PREVEN T SIMIL AR FU TURE EXCEE DANCES.

(ii) IDEN TIFICATIO N OF THE TIM E PE RIODS FOR WHICH OPE RATING CONDITIO NS AND POLLUTANT DATA WERE NOT OBTAIN ED, INCLUDING REASONS FOR NOT OBTAINING SU FF ICI EN T DATA AND A DESCRI PTIO N OF CORR ECTI VE ACTIO NS TAKEN .

Document Information

Rules:: R0.25
R96.54