Section 336.1821. CAIR NOX ozone season and annual trading programs; applicability determinations.

(1) This rule establishes Michigan's CAIR ozone season and annual emission budgets and trading programs for all of the following units:

(a)     CAIR NOX units as defined pursuant to 40 C.F.R. §97.104,  adopted  by reference in R 336.1802a.

(b)   CAIR NOX ozone season units as defined pursuant to 40 C.F.R §97.304, adopted by reference in R 336.1802a.

(c)   All units required to be in the state's NOX SIP call trading program that are not already included under 40 C.F.R. §96.304 and are defined in R 336.1803(3)(f)(ii) and (p).

(d)    For purposes of allocating allowances under R 336.1821 to R 336.1826, the following units which are not addressed in subparagraphs (a), (b) and (c) of this subrule are CAIR NOX ozone season units:

(i)   Renewable energy sources.

(ii)   Renewable energy projects.

(2)    An EGU located in Michigan and subject to the requirements pursuant to R 336.1821(a), (b) or (c) shall apply for and receive an annual or ozone season CAIR NOX permit. In addition, non-EGUs as defined in R 336.1803(3)(p) shall apply for and receive an ozone season CAIR NOX permit. This permit shall be administered under R 336.1214 and shall be incorporated into the source's renewable operating permit as an attachment. A federally enforceable NOX budget permit issued under the federal NOX budget program pursuant to R 336.1808 shall remain in effect until the CAIR NOX ozone season permit has been approved by the department.

(3)   The fuel type adjusted allocations for each existing EGU shall be determined by multiplying the appropriate NOX emission rate and heat input as determined in accordance with R 336.1822 and R 336.1830 with an appropriate fuel adjustment factor coefficient as follows:

(a)     For a solid fuel-fired EGU, the allocation calculations shall be adjusted by multiplying the allocation values by 100%, i.e. 1.0.

(b)    For a liquid fuel-fired EGU, the allocation calculations shall be adjusted by multiplying the allocation values by 60%, i.e. 0.60.

(c)    For a gaseous fuel-fired EGU, the allocation calculations shall be adjusted by multiplying the allocation values by 40%, i.e. 0.40.

(d)  For a multi-fueled EGU, the allocation adjustment calculation shall be a weighted average based on the percentage heat input from each type of fuel burned in the unit, unless the source can demonstrate that certain types of fuel used in the process provided less than 10% of the annual heat input. If so, then the allocation adjustment is calculated based on only those fuel types which contributed 10% or more of the annual heat input.

(4)    The owner or operator of any CAIR NOX ozone season or annual unit shall submit both of the following data within 30 days upon request by the department:

(a)   A unit's ozone season and annual heat input values or megawatt energy produced, which shall be the same data reported in accordance with 40 C.F.R. part 75 to the extent the unit is subject to 40 C.F.R.  part 75 for the period involved.

(b)   A unit's total tons of oxides of nitrogen emissions during specified calendar years or ozone seasons as determined under 40 C.F.R. part 75, adopted by reference in R 336.1802a.

(5)    Effective January 1, 2009, the provisions of R 336.1802, R 336.1803(1) and R 336.1803(2), R 336.1804, R 336.1805, R 336.1806, R 336.1807, R 336.1808, R 336.1809, R 336.1810, R 336.1811, R 336.1812, R 336.1813, R 336.1814, R 336.1815, and R 336.1816 shall not apply to the control period beginning in 2009 or any control period thereafter.

(6)    Pursuant to the provisions in 40 C.F.R. 96.54 and for the 2009 control period only, if the U.S. environmental protection agency determines that there were excess emissions during the 2008 control period, deductions for excessive emission penalties shall be taken from the 2009 CAIR NOX ozone season allowances.   Title 40 C.F.R.

§96.54 is adopted by reference in R 336.1802a.

(7)    Pursuant to any NOX SIP unused set-aside allowances through 2008 that are accumulated within the state account, the department shall allocate these allowances according to R 336.1823.

(8)      Permitted NOX emission rates, for the purposes of allocating allowances pursuant to R 336.1822 and R 336.1830, shall be in a legally enforceable permit to install or renewable operating permit issued on or before August 1, 2008, for the October 2008 allocating time period; on or before August 1, 2011, for the October 2011 allocating time period and thereafter each August 1 of the year that is 3 years after the last year of allocation submittal time period.

History: 2007 MR 12, June 25, 2007; 2009 AACS.