Section 336.1830. CAIR NOX annual trading program; allowance allocations.

Rule 830. (1) The CAIR NOX annual trading program budget allocated by the department for the CAIR NOX annual control periods shall annually equal the total number of tons of oxides of nitrogen emissions as follows and apportioned to the CAIR NOX EGUs, as determined by the procedures in this rule. These allocations shall be distributed in the following manner: (a) The total CAIR NOX annual budget for the annual control periods of 2009 to 2014 is 65,304 tons. These allocations shall be distributed in the following manner:

(i)   The CAIR NOX annual budget available to existing EGUs as follows:

(A)  For the 2009 through 2011 annual control periods is 63,104.

(B)  For the 2012 through 2014 annual control periods is 62,704.

(ii)   The CAIR NOX annual budget available to new EGUs as follows:

(A)  For the 2009 through 2011 annual control periods is 1,000 tons.

(B)  For the 2012 through 2014 annual control periods is 1,400 tons.

(iii)      The CAIR NOX annual budget available to all existing EGUs that have submitted an acceptable demonstration of a hardship to the department, in the 2009 to 2014 annual control periods is 1,200 tons.

(b) The total CAIR NOX annual budget for the annual control periods of 2015 and thereafter is 54,420 tons. These allocations shall be distributed as follows:

(i)    The CAIR NOX annual budget available for existing EGUs in the 2015 and thereafter annual control periods is 51,820 tons.

(ii)     The CAIR NOX annual budget available for new EGUs in the 2015 and thereafter annual control periods is 1,400 tons.

(iii)      The CAIR NOX annual budget available to all existing EGUs that have submitted an acceptable demonstration of a hardship to the department, in the 2015 and thereafter annual control periods is 1,200 tons.

(2)   The department shall allocate CAIR NOX annual budget allowances to existing EGUs. A 3-year allocation is 2 and 3 years in advance of the 2009 and 2010 annual control period, respectively, and 4 years in advance of each subsequent annual control period. The 3-year allocation shall be as follows:

(a)    By 60 days after the effective date of this rule or April 30, 2007, whichever is earlier, the department shall submit to the U.S. environmental protection agency the CAIR NOX annual allowance allocations, under subrule

(3)   of this rule, for the annual control periods in 2009, 2010, and 2011.

(b)    By October 31, 2008, the department shall submit to the U.S. Environmental protection agency the CAIR NOX annual allowance allocations, under subrule (3) of this rule, for the annual control periods in 2012, 2013, and 2014.

(c)   By October 31, 2011, and thereafter each October 31 of the year that is 3 years after   the  last  year  of   allocation  submittal,  the  department   shall  submit  to  the   U.S.

  

  

  

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environmental  protection   agency  the  CAIR   NOX  annual  allowance  allocations   as indicated under subrule (3) of this rule.

(3)   For the CAIR NOX annual control periods under subrules (1)(a) and (b) of this rule, the department shall allocate allowances to existing EGU units that commenced operation before January 1 of the most recent year of the 5-year period used to calculate heat input. The department shall allocate the following allowances to each existing EGU:

(a)   During calendar years 2009 to 2014, the following:

(i)    Existing EGUs with a permitted NOX emission rate equal to or less than 0.10 pounds per million Btu shall receive an initial unadjusted allocation of allowances determined by calculating the arithmetic average of the CAIR target emission rate multiplied by the appropriate fuel adjustment factor plus the unit's permitted NOX emission rate, which is then multiplied by the heat input as determined under subrule (4) of this rule, divided by 2,000 pounds per ton, and rounded to the nearest whole oxides of nitrogen allowance, as appropriate.

(ii)      All other existing EGUs shall receive an initial unadjusted allocation of allowances in an amount equaling 0.15 pounds per million Btu multiplied by the appropriate fuel adjustment factor and multiplied by the heat input as determined under subrule (4) of this rule, divided by 2,000 pounds per ton, and rounded to the nearest whole oxides of nitrogen allowance, as appropriate.

(b)   During calendar years 2015 and thereafter, the following apply:

(i) Existing EGUs with a permitted NOX emission rate equal to or less than 0.10 pounds per million BTUs shall receive allowances determined by calculating the arithmetic average of the CAIR target emission rate multiplied by the appropriate fuel adjustment factor plus the unit's permitted NOX emission rate, which is then multiplied by the heat input as determined under subrule (4) of this rule, divided by 2,000 pounds per ton, and rounded to the nearest whole oxides of nitrogen allowance, as appropriate.

(4)   The heat input, in million Btu's, used for calculating oxides of nitrogen allowance allocations for each subject unit under this rule shall be the unit's average of the 2 highest heat inputs for the annual control period in the 5 years immediately preceding the year in which the department is required to submit the oxide of nitrogen allocations. If the unit operated less than 2 years of the 5-year time period, then the unit's single highest heat input shall be used.

(5)   If the initial total number of CAIR NOX annual budget allowances allocated to all existing EGUs for the years under subrule (3) of this rule does not equal the budgeted tons for such units as specified in subrule (1) of this rule, then the department shall adjust up or down the total number of CAIR NOX annual budget allowances allocated to each existing EGU so that the total number of CAIR NOX annual budget allowances allocated to the entire group of EGUs equals the appropriate value in subrule (1) of this rule. The adjustment shall be made by multiplying each unit's unadjusted initial allocation by a correction factor determined by dividing the appropriate existing EGU total  annual budget tons from subrule (1) of this rule by the sum of all existing EGU's initial unadjusted allocations, and rounding to the nearest whole ton, as appropriate.

History: 2007 AACS.; 2009 AACS.