Section 336.1825. CAIR NOx ozone season trading program; renewable set-aside.

(1) The department shall establish a renewable allocation set-aside pool for each CAIR NOx ozone season control period for applicable units starting in 2010. This renewable set-aside pool shall be allocated on a yearly basis and contain a total of 200 tons of oxides of nitrogen allowances per allocation year.

(2)   An authorized account representative of a renewable energy source or renewable energy project, as defined under R 336.1803(3), may request a CAIR NOx ozone season allowance allocation under this rule.

(3)     Once an authorized account representative of a renewable energy source or renewable energy project has requested allowances from the CAIR NOx ozone season budget, the department shall allocate CAIR NOx ozone season renewable allowances under the following procedures:

(a)    The oxides of nitrogen allowance allocation request shall be submitted before March 1 of the year of the first ozone control period for which the oxides of nitrogen allowance allocation is requested and after the date on which the department issues a permit to install for the unit, if required, and each following year by March 1.

(b)    

 

 

The allocation methodology used for the first ozone season for which each renewable energy source or renewable energy project requests allowances shall be calculated using the following formula:

(4)      The renewable energy source or renewable energy project's eligibility for allowances shall begin not sooner than the calendar year 2005.

(5)    An individual renewable energy source alone or as part of a renewable energy project may only receive allowances for 3 consecutive ozone

seasons.

(6)   CAIR NOx ozone season allowances not allocated or requested that remain in the renewable allocation set-aside pool for any allocation year shall be re-allocated to the existing EGU and non-EGU source pools, using the allocation methodologies as outlined in Rule 822 and based on a ratio of the number of allowances remaining in the pool and the number of allowances in the EGU's and non-EGU's budget.

(7)   If the renewable allocation set-aside pool for the CAIR NOx ozone season control period for which CAIR NOx ozone season allowances are requested has an amount of oxides of nitrogen allowances less than the number requested, then the department shall proportionately reduce the number of CAIR NOx ozone season allowances allocated to each CAIR NOx ozone season unit requesting such allowances, so that the total number of CAIR NOx ozone season allowances allocated are equal to the amounts in R 336.1822(1)(a)(iv) or (b)(iv).

History: 2007 AACS.