# Attachment- G ProposedRuleIndiana Register
TITLE 326 AIR POLLUTION CONTROL BOARD

Proposed Rule LSA Document 1108-5

DIGEST

Amends 326 lAC 24-1-2, 326 lAC 24-1-7, 326 lAC 24-1-8, 326 lAC 24-1-9, 326 lAC 24-1-12, 326 lAC 24-2-2, 326 lAC 24-2-7, 326 lAC 24-2-8, 326 lAC 24-2:.1,1, 326 IAG2'!.:3-1, 32QJAC24-3-2, 326 lAC 24-3-7, ;1.29 lAC 24- 3-8, 326 lAC 24-3-9, and 326 lAC 24-3-12 concerning the Clean Air Interstate Rule (CAIR). Effective 30 days afterfiling wltll the Publisher.

HISTORY IC 13-14-9-7 Section 7 Notice: January 23, 2008, Indiana Register (DIN: 20080123-IR-326080005F06). Notice of First Hearing: January23,2008, Indiana Register (DIN: 20080123-IR-326080005PHA). Date of First Hearing: May 7, 2008.

SUMMARY/RESPONSE TO COMMENTS FROM THE SECOND COMMENT PERIOD The Indiana Department of Environmental Management (IDEM) requested public comment from January23, 2008, through February 22, 2008, on IDEM's draft rule language. No comments were received during the second comment period.

SUMMARY/RESPONSE TO COMMENTS RECEIVED AT THE FIRST PUBLIC HEARING On May 7, 2008, the Air Pollution Control Board (board) conducted the first public hearing/board meeting concerning the development ofamendments to 326 lAC 24. No comments were made atthe first hearing.

326 lAC 24-1-2; 326 lAC 24-1-7; 326 lAC 24-1-8; ;l26LAC 24-1-9; 326 lAC 24-1-12; 326 lAC 24-2-2; 326 lAC 24-2-7; 326 lAC 24-2-8; 326 lAC 24-2.:11; 326 IAC24,3-1; 326 lAC 24-3-2; 326 lAC 24-3-7; 326 lAC 24-3-8; 326 lAC 24-3-9; 326 lAC 24-3-12

SECTION 1

..326 lAC 24-1,2 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-1-2 Definitions Authority:**~U:.14-8;** IC 13-17-3-4; IC**13,11.~~11** Affected:**~Jl,l.1-2;** IC 13-15; IC 13-17

Sec. 2. For purposes of Ihis rule, the definition given for a term in this rule shall control in any conflict between 326 lAC 1-2 and this rule. In addition to the definitions provided in IC 13-11-2 and 326 lAC 1-2, the following definitions applythroughout this rule, unless expressly stated otherwise or unless the context clearly implies otherwise: (1) "Account number" means the identification numbergiven by the U.S. EPAto each CAIR NO altowance tracking system account. x (2) "Acid rain emissions limitation" means a lirnitation on emissions ofsulfurdioxide or nitrogen oxides under the acid rain program. (3) "Acid rain program" means a multistate sulfurdioxide and nitrogen oxides air pollution control and emission reduction program established by tile U.S. EPA underTitle IVofthe Clean AirAct and 40 CFR Parts 72 through 78'. (4) "Allocate" or "allocatlon" means, with regard to CAIR NO allowances, the determination by a permitting authority orthe U.S. EPA ofthe amount of suell CAIR NO allowances to be initiallycredited to a CAIR NO unit, a new unit set-side, an energy efficiency or renewable energy set-aside, orotherentity. x (5) "Allowance transferdeadline" means, for a control period, midnigllt of March 1 (if il is a business day), or midnight ofthe first business daythereafter (if March 1 is not a business day), immediately following the control period, and is the deadline bywhich a CAlF, NO allowance transfer must be submitted for recordation in a CAIR NO source's compliance account in ordertohe used to meet the source's CAIR NO emissions limitation for s'Lch control period in accordance with section 9(i) and g(j) ofthis rule. ' (6) "Alternate CAIR designated representative" means, fora CAIR NO source and each CAIR NO unit attile
source, the natural person who is authorized bythe owners and operafors 

### ofthe source and all such units at tile source, in accordance with sections 6 through 12 ofthis rule, to act on behalf ofthe CAlF, designated I"epresentative in matters pertaining to the CAIR NOxannual**tradin~)** program. Ifthe CAIR NOxsource is also a**[)~lte** May 29,2008 8:03:53AM EDT DIN:**2008052g·,IF~-:l26080005PHA**Indiana Register
CAIR S02 source, then this natural person shall be the same person as the alternate CAIR designated representative underthe CAIR S02 trading program. 

### Ifthe CAIR NO source is also a CAIR NO ozone
season source, then this natural person shall be the same person asXthe alternate CAIR designJted representative underthe CAIR NO ozone season trading program. Ifthe CAIR NO source is also subject to the acid rain program, then this nal'ural person shall be the same person as the alte1nate designated representative underthe acid rain program. Ifthe CAIR NO source is also subjectto the mercury budget trading program, then this natural person shall be the samexperson as the alternate mercury designated representative underthe mercury budgettrading program. (7) "Automated data acquisition and handling system" or "DAHS" means that component ofthe continuous emission monitoring system, orotheremissions monitoring system approved for use undersection 11 ofthis rule, designed to interpret and convert individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and othercomponent pads ofthe monitoring system to produce a continuous record ofthe measured parameters in the measurement units required 

### by section 11 ofthis rule. (8) "Biomass" means any ofthe following:

(A) Organic material grown forthe purpose of being converted to energy. (B) Organic byproduct of agriculture that can be converted into energy. 

### (e) Material that:



### (i) can be converted into energy and is nonmerchantable for other purposes; (ii) is segregated from other nonmerchantable material; and (iii) is:

(AA) 

### a forest-related organic residue, including mill residues, precommercial thinnings, slasl1, brush, or byproductfrom conversion oftrees to merchantable material; or (B8) 

### a wood material, including pallets, crates, dunnage, manufacturing and construction materials (otherthan pressure-treated, chemically-treated, or painted wood products), and landscape or right-of-way trimmings. 

## f'lJ (9) "Boiler" means an enclosed fossil- orother-fuel-fired combustion device used to produce heat and to transfer heatto recirculating water, steam, orother medium. 

## f9J (10) "Bottoming-cycle cogeneration unit" means a cogeneration unil in which the energy inputto the unit is first used to produce useful thermal energy and at least some ofthe reject heatfrom the useful thermal energy application or process is tben used forelectricity production. 

## f4{)j (11) "CAIR authorized account representative" means, with regard to ageneral account, a responsible natural person who is authorized, in accordance with sections 6,9, and 12 ofthis rule, to transfer and otherwise dispose of CAIR NO allowances held in the general account and, with regard to a compliance account, the CAIR designated fepresentative ofthe source. (++J (12) "CAIR designated representative" means, for a CAIR NO source and each CAIR NO unit atthe
source, the natural person who is aulborized bythe owners and operators ofthe source and airsuch unils at the source, ill accordance with sections 6 and 12 ofthis rule, to represent and legally bind each ownerand operator in matters pertaining to the CAIR NO annual trading program. Ifthe CAIR NO source is also a CAIR SO, source, then this natural person shall be 6,e same person as the CAIR designated'representative under the CAIR SO, trading program. Ifthe CAIR NO source is also a CAIR NO ozone season source, tl1en this natural person sl1all be the same person as the'CAIR designated representative underthe CAIR NO ozone
season trading program. Ifthe CAIR NO source is also subjectto tbe acid rain program, then this nJtural person shall be the same person as the aesignated representative underthe acid rain program. Ifthe CAIR NO source is also subject to the mercury budget trading program, then this natural person shall be the same perlon as tbe mercurydesignated representative undertbe mercury budgettrading program. (+.") (13) "CAIR NO allowance" means a limiled authorization issued by a permitting authority orthe U.S. EPA under provisions of'iJ state implementation plan that are approved under40 CFR 51.123(0)(1), 40 CFR 51123(0)(2), nr 40 CFR 51123(p)', or under40 CFR 97', to emit one (1) ton of nitrogen oxides during a control period ofthe specified calendaryearforwhich the authorization is allocated orofany calendaryear thereafter undertl1e CAIR NO program. An autborization to emit nitrogen oxides that is not issued under provisions ofa slate irnplem8n"tation plan that are approved under40 CFR 51.123(0)(1),40 CFR 51.123(0)(2),

or40 CFR 51.123(p)', or under40 CFR 97' shall not be a CAIR NO allowance.

. x 

## \+&J (14) "CAIR NO allowance deduction" or "deduct CAIR NO allowances" means tile permanent withdrawal 01 CAIR

## 'No allowances by Ihe U.S. EPA from aco;;'pliance account, for example, in order 10 accounl for aspecified

### ~umber oftons oftotal nitrogen oxides emissions from all CAIR NO unils at a CAIR NO source for acontrol period, deterniined in accordance with section 11 ofthis rule, or toXaccount for excess x . emissions. 

## (44J (15) "CAIR NO allowances held" or "hold CAIR NO allowances" means the CArR NO allowances recorded by the US'. EPA, orsubmitted to Ihe U.S. EPA

# 10rrecordation, in accordance witl1'sectlons 9,10, and 12 ofthis rule, in a CAIR NO allowance tracking system account. 

## f4{;J (16) "CAIR NO, allowance tr'iJcking system" means the system bywhich the U.S. EPA records

Dale: May29,20013 1303:53I\M Em DIN:**200a052H·lr~"32GOa0005PI~/\**Indiana Register allocations, deductions, and transfers of CAIR NO allowances underthe CAIR NO annual trading program. Such allowances will be allocated, held, deducted,'ortransferred only as whole

### allo~ances. 

## f4-6l (17) "CAIR NO allowance tracking system account" means an account in the CAIR NO allowance tracking system est§blished bythe U.S. EPAfor purposes of recording the allocation, holding, transferring, or deducting of CAIR NO allowances. 

## f++-l (18) "CAIR NO aAnual trading program" means a multistate nitrogen oxides air pollution control and emission reduction program approved and administered by the U.S. EPA in accordance with this rule; 40 CFR 96, Subparts AA through II' and 

### 40 CFR 

### 81.123' 40 CFR 51,123(0)(1) or40 CFR 51,123(0)(2)*; or established bythe U.S, EPA in accordance with 40 CFR 9'1, Subparts AA through 11* and 40 CFR 51.123(p)' and 40 CFR 52.35*, as a means ofmitigating interstate transport of fine particulates and nitrogen oxides, 

### (+&) (19) "CAIR NO emissions limitation" means, for a CAIR NO source, the tonnage equivalent, in NO emissions in acontfol period, ofthe CAIR NO allowances available for deduction forthe source under

### s~ction 9(i) and 90)(1) ofthis rule for the control perioa, (+91 (20) "CAIR NO ozone season source" means a source that is subject to the CAIR NO ozone season

. x x trading program. (21) "CAIR NO ozone season trading program" means a muilistate nitrogen oxides air pollution control and emission reduclion program approved and administered bythe U,S. EPA in accordance witl1 326 lAC 24- ;),; 40 CFR 96, Subparts AAAA througl1 IIII' and 

### 40 CFR 81-,+2-3-' 40 CFR 51,123(aa)(1) or40 CFR 51,123(aa)(2), and 40 CFR 51,123(bb)(1), 40 CFR 51,123(bb)(2), or40 CFR 51,123(dd)*; or established by the U.S, EPA in accordance with 40 CFR 9'1, Subparts AAAA through IIII' and 40 CFR 51,123(ee)* and 40 CFR 52.35', as a means ofmitigating interstate transporl ofozone and nitrogen oxides, 

## f24i (22) "CAIR NO source" means a source that is subject to the CAIR NO annual trading program, (23) "CAIR No' unit" means a unitthat is subjecl to the CAIR NO annu'ill trading program undersection 1 ofthis rule and, eilcept for purposes of sections 3and 8 of Ihis rule,

## i\ CAIR NO opt-in unit undersection 12 ofthis rule. x (24) "CAIR permit" means the legally binding and federally enforceable written document, or portion of such documenl, issued bythe department undersection 

### 'I ofthis rule, including any permit revisions, specifying Ihe CAIR NO annual trading program requiremenls applicable to a CAIR NO source, to each CAIR NOx unit at the sotJfce, and to the owners and operators and the CAIR designated'representative ofthe

source and each such unit. (25) "CAIR SO source" means a source thai is subject 10 the CAIR SO, trading program. (26) "CAIR S02 trading program" means a multistate sulfurdioxide air pollution control and emission reduction program 5pproved and administered bythe U.S, EPA in accordance with 326 lAC 24-2; 40 CFR 96, Subparts AAA through III' and 

### 40 CFR 

### §1,124' 40 CFR 51,124(0)(1) or40 CFR 51,124(0)(2)'; or established in accordance wilh 40 CFR 9'1, Subparts AAA through III and 40 CFR 51,124(r)' and 40 CFR 52.36*, as a
means of mitigating interstate transport offine particulates and sulfurdioxide. (27) "Coal" means any solid fuel classified as anthracile, bituminous, subbituminous, or lignite. (28) "Coal-derived fuel" means anyfuel, whelher in a solid, liquid, orgaseous state, produced bythe mechanical, thermal, or chemical processing ofcoal. (29) "Coal-fired" means: (A) except for purposes ofsection 8 ofthis rule, combusting any amounl ofcoal or coal-derived fuel, alone

or in combination with any amount of any oHlerfuel, during any year; or (8) for purposes ofsection 8 ofthis rule, combusting any amount of coal or coal-derived fuel, alone or in combination with any amount of any otherfuel, during a specified year. (30) "Cogeneration unit" means astationary, fossil-fuel-fired boilerorstationary, fossil-fuel-fired combustion turbine: (A) Ilaving equipment used to produce electricity and useful thermal energy for industrial, commercial, healing, or cooling purposes through the sequential use of energy; at1d (8) producing during the Iwelve (12) montl1 period starling on Ihe dale the unit first produces eleclricity and during any calendar year afterthe calendaryear in which the unit first produces electricity:

-
.. (i) for a topping-cycle cogeneralion unit:

(AA) useful thermal energy not less than five percent (5%) of lolal energy output; and (86) useful powerthat, when added 10one-hall (y,) of usefulther'mal energy produced, is not less than forty-two and one-half percenl (42.5%) of lotal energy input, if useful thermal energy produced is fifteen percent (15%)) or more oftotal energy outpul, or not less than forty-five percent (45°.,{)) oftotal energy input, if useful thermal energy produced is less tl1an fifteen percent (15%) oftolal energy outpul; and (ii) for a bottoming-cycle cogeneration unit, useful power not less than forty-five percent (45%) oftotal energy input; and (C) provided that the total energy 'Input underclause (8)(i)(86) and (8)(ii) shall equal the unit's total energy inputfrom all fuel except biomass ifthe unit is a boiler. 

## PGl (31) "Combustion turbine" means:

Date: May 29,2008 8:03'S3AM EDT

### Indiana Register (A) an enclosed device comprising a compressor, acombustor, and aturbine and in which the flue gas resulting from the combustion offuei in the combustor passes through the turbine, rotating the turbine; and (B) ifthe enclosed device underclause (A) is combined cycle, anyassociated duct burner, heat recovery steam generator, and steam turbine. 

## f34J (32) "Commence commercial operation" means, with regard to a unit, the following: (A) To have begun to produce steam, gas, orother heated medium used to generate electricityfor sale or use, including test generation, except as provided in sections 3and 12(f)(10) ofthis rule, subject to the following:

(i) Fora unit that is a CAIR NO unit undersection 1 ofthis rule on the laterof November 15, 1990, orthe date the unitcommences comrfJercial operation as defined in this clause and 

### Olat subsequently undergoes

a physical change (otllerthan replacement ofthe unit by a unit atthe same source) such date shall remain the date ofcommencement ofcommercial operation ofthe unit, which shall continue to be treated as the

same unit. (ii) Fora unitthat is a CAIR NO unit undersection 1 ofthis rule on the laterofNovember 15, 1990, orthe date the unitcommences comrriercial operation as defined in this clause and that is subsequently replaced bya unitatthe same source (forexample, repowered), such date shall remain the replaced unit's date of commencement ofcommercial operation, and the replacement unitshall be treated as aseparate unitwith

aseparate date for commencement of commercial operation as defined in this clause orclause (B) as appropriate. (B) Notwithstanding clause (A) and except as provided in section 3ofthis rule, for a unit that is not a CAIR NO unit undersection 1 ofthis rule on the laterof November 15, 1990, orthe date the unit commences coJimercial operation as defined in clause (A), the unit's date for commencement of commercial operation shall be the date on which the unit becomes a CAIR NO unit under section 1 ofthis rule, subjectto the following: x

(i) Fora unitwith adate forcommencement ofcommercial operation as defined in this clause and that subsequently undergoes a physical change (otherthan replacementofthe unit by a unit atthe same source) such date shall remain the date ofcommencement ofcommercial operation ofthe unit, which shall continue to be treated as the same unit. (ii) Fora unitwith adate forcommencement of commercial operation as defined in this clause and that is subsequently replaced bya unit atthe same source (for example, repowered), such date shall remain the replaced unit's date ofcommencement of commercial operation, and the replacement unit shaH be treated

as aseparate unitwith aseparate date forcommencement ofcommercial operation as defined in this clause orclause (A), as appropriate.

(33) "Commence operation" means the following: (A) To l1ave begun any mechanical, chemical, orelectronic process, including, with regard to aunit, start-up ofa unil's combustion chamber, except as provided in section 12(f)(1 0) ofthis rule. (B) Fora unil that undergoes a pl1ysical change (otl1ertl1an replacement ofIhe unit by a unit atthe same source) aflerthe date the unitcommences operation as defined in clause (A), such date shall remain the date of commencement of operation ofthe unit, which shall continue to be treated as the same unit. (C) Fora unit that is replaced by a unit atthe same source (forexample, repowered) aflerthe date the unil

commences operation as defined in clause (A), sucll date shall remain the replaced unil's date of commencement, and the replacement unit shall be trealed as aseparate unitwith aseparate date for commencement ofoperation as defined in Illis clause orclause (A) or (B), as appropriate, excepl as provided in section 12(1)(10) ofthis rule.

(34) "Common stack" means asingle flue lhrough whicl1 emissions from two (2) or more units are exhausted. 

## t34J (35) "Compliance account" means a CAIR NO allowance tracking system account, established by lhe 

## u.s. EPA for a CAIR NO source undersection 90; 12 oftl1is rule, in which any CAIR NO allowance allocations for tile CAIR

## ilJo units at Ihe source are initially recorded and in which are hela any CAIR NO allowances available for use xfor a control period in orderto rneet the sdurce's CA1R NO emissions limitatTon in accordance witl1 section 9(i) and 9(j) ofthis ruie. ' 

## f3&1 (36) "Continuous emission monitoring syslem" or "CEMS" means the equipment required undersection 

### 11 ofthis rule to sample, analyze, measure, and pmvide, by means ofreadings recorded at least once every fifleen (15) minutes, using an automated data acquisition and handling system (DAHS), a permanenl record of nitmgen oxides emissions. stack gas volumetricflow rate, stack gas moisture content, and oxygen orcarbon dioxide concentralion, as applicable, in a mannerconsistent wil1140 CFR 75'. The following systems are the principal types of continuous emission monitoring systems required undersection 

### 11 ofIhis rule:

(A) aflow monitoring system, consisting of astack flow rate monitorand an automated data acquisition and handling system and providing a permanent, continuous record ofslack gas volumetric flow rate, in standard cubic feet per hour (scfh): (8) a nitrofJen oxides concentration monitoring systenl, consisting ofa NOxpollutant concentration manito!

Dilte May 29.2008 8:03:53AM EIYI DIN:**20080528·,IF~,,326080005pr~A** Pane t.lIndiana Register
and an automated data acquisition and handling system and providing a permanent, continuous record of NO emissions, in parts per million (ppm); (C)'a nitrogen oxides emission rate (or NO -diluent) monitoring system, consisting ofa NO pollutant concentration monitor, adiluent gas (CO, br

## 0) monitor, and an automated data acquisiti8n and handling system and providing a permanent, continuous'record of NO concentration, in parts per million (ppm), diluent gas concentration, in percent CO, or

### 0" and NO, emlssion rate, in pounds per million British thermal LIIlltS (lb/MMBtu); (D) a moisture monitoring system, as defined in 40 CFR 75.11 (b)(2r and providing a permanent, continuous record ofthe stack gas moisture content, in percent H2

### 0; (E) a carbon dioxide monitoring system, consisting ofa CO, pollutant concentration monitor, or an oxygen monitor plus suitabie mathematical equations from which the CO, concentration is derived, and an automated data acquisition and handling system and providing a permanent, continuous record ofCO, emissions, in percent 

### CO2; and (F) an oxygen monitoring system, consisting ofan 

### 0, concentration monitorand an automated data acquisition and handling system and providing a permanent, continuous record of02' in percent 0;( f&'1 (37) "Control period" means the period beginning January 1 ofa calendaryear, except as provided in seclion 4(c)(2) ofthis rule, and ending on December 31 ofthe same year, inclusive. Forthe purposes of section 8(h) ofthis rule, control period means January 1 through April 30 and October 1 through December 31 ofthe same calendaryear. 

### (&f-) (38) "Emissions" means air pollutants exhausted from a unit orsource into the atmosphere, as measured, recorded, and reported to the U.S. EPA bythe CAIR designated representative and as determined bythe U.S. EPA in accordance with section 11 ofthis rule. 

### (-3&J (39) "Energy efficiency or renewable energy projects" means any ofthe following implemented in Indiana: (A) End-use energy efficiency projects, including demand-side management programs. (B) Highly efficient electricity orsteam generation for the predominant use ofasingle end user, such as combined cycle, combined heat and power, microturbines, and fuel cell systems. In orderto be considered

as highly efficient electricity generation underthis clause, combined cycle, combined heat and power, microlurbines, and fuel cell generating systems must meet orexceed one (1) ofthe following thresholds:

(i) Forcombined heat and power projects generating both electricity and thermal energy for space, water,

or industrial process heat, rated energy efficiencyof sixty percent (60%). (ii) For microturbine projects rated at or belowfive hundred (500) kilowatts generating capacity, rated energy efficiency offorty percent (40%). (iii) Forcombined cycie projects rated at greaterthan five hundred (500) kilowatts, rated energy efficiency offifty percent (50%). (iv) Forfuel cell systems, rated energy efficiency offorty percent (40%), whether or notthe fuel cell system is part ofa combined lleal and power energy system. (C) Zero,emission renewable energy projects, including wind, photovoltaic, solar, and hydropower projects. Eligible hydropower projects are restricted to systems employing a head often (10) feet or less orsystems employing a head greaterthan ten (10) feet tllat make use of adam that existed before September 16, 2001 (D) Energy efficiency projects generating electricitythrough the capture of methane gas from municipal solid waste landfills, watertreatment plants, sewage treatment plants, or anaerobic digestion systems operating

on animal or plant wastes. (E) The installation of highly efficient electricity generation equipment for the sale of powerwhere such equipment replaces ordisplaces retired electrical generating units. In orderto be considered as highly efficient underthis clause, generation equipment must meet or exceed the following energy efficiency thresholds:

(i) Forcoal-fired electrical generation units, rated energy efficiency offorty-two percent (42%). (ii) For natural gas-fired electrical generating units, rated energy efficiency of fifty percent (50%). (F) Improvements to existing fossil fuel-fired electrical generation units that increase the efficiency ofthe unit and decrease the heat rate used to generate electricity, including gas reburning projects that reduce NO

. . 

# . emISSions. (G) The installation of integrated gasification combined cycle equipment for producing electricityfor sale. (H)**F~enewable** energy projects that displace some portion ofthe combustion of coal, natural gas, oroil through the use of solar energy or methane from landfills, watertreatment plants, sewage treatment plants,

or anaembic digestion systems on animal or plant wastes and reduce NO emissions. Energy efficiency or renewable energy projects do not include nuclear power projects. This definition is solely for the purposes of implementing this rule and does not apply in othercontexts. 

## fWl (40) "Excess emissions" means any ton of nitrogen oxides emitted by the CAIR NO units at a CAlI' NO

source during acontrol period that exceeds the CAIR NO emissions limitation forthe 

### source. x 

### (40) (41) "FESOP" means a federally enforceable state 013erating pennil issued under

### J2fiJAl;;.2:§.

[Jale May**;2~l,2008** H:03:53AM EDT DIN:**20080528-lf~-3260e()005Pf<A**Indiana Register 

## \4+1 (42) "Fossil fuel" means natural gas, petroleum, coal, oranyform ofsolid, liquid, or gaseous fuel derived from such material. (43) "Fossil-fuel-fired" means, with regard to a unit, combusting any amount offossil fuel in any calendar year. (4JJ (44) "Fuel oil" means any petroleum-based fuel (including diesel fuel or petroleum derivatives such as oil tar) and any recycled or blended petroleum products or petroleum byproducts used as afuel whether in a liquid, solid, orgaseous state. 

### (44) (45) "General account" means a CAIR NO allowance tracking system account, established undersection 9 ofthis rule, that is not a compliance accountx 

### (4§1 (46) "Generator" means adevice that produces electricity. 

### (4§1 (47) "Gross electrical output" means, with regard to acogeneration unit, electricity made available for use, including any such electricity used in the power production process. This process may include, but is not limited to, any**oll~site** processing ortreatment offuel combusted atthe unit and anyon-site emission controls. 

### \4+) (48) "Heat input" means, with regard to aspecified period oftime, the product, in million British thermal units per unit oftime (MMBtu/time) ofthe gross calorificvalue ofthe fuel, in British thermal units per pound (Btu/lb), divided by one million (1,000,000) British thermal units per million British thermal units (Btu/MMBtu) and multiplied by the fuel feed rate into a combustion device, in pounds offuel per unit oftime (Ib offuel/time),

as measured, recorded, and reported to the U.S. EPA bythe CAIR designated representative and determined bythe U.S. EPA in accordance with section 11 ofthis rule and excluding the heat derived from preheated combustion air, recirculated flue gases, orexhaustfrom othersources. 

## f4&l (49) "Heat input rate" means the amount of heat input, in million British thermal units (MMBtu), divided hy unit operating time, in hours, or, with regard to a specific fuel, the amount of heat input attributed to the fuel, in million British thermal units (MMBtu), divided bytile unit operating time, in hours, during which the unit combusts the fuel. (4B1 (50) "Life-of-the-unit, firm powercontractual arrangement" means a unit participation powersales agreement underwhich a utilityor industrial customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity and associated energy generated by any specified unit and pays its proportional amount ofsuch unit's total costs, pursuant to a contract:

(A) forthe life ofthe unit; (B) for acumulative term of no less than thirty (30) years, including contracts that permit an election for early termination; or (C) for a period no less than twenty-five (25) years or seventy percent (70%) ofthe economic useful life of the unit determined as ofthe time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end ofthe period. 

### ((iG) (51) "Maximum design heat input" means the maxirnurn amount offuel per hour, in British thermal units per hour (Btu/hr), that a unit is capable of combusting on a steady stale basis as ofthe initial Installation ofthe unit as specified bythe manufacturerofthe unil. 

## f&17 (52) "Mercury (Hg) budgettrading program" means a rnultistate Hg air pollution control and ernission reduction program approved and administered bythe U.S. EPA in accordance with 40 CFR 60, Subpart HHHH' and 40 CFR 60.24(h)(6)', orestablished bythe U.S. EPA under the Clean AirAct, Section 111, as a
means of reducing national mercury emissions. (53) "Monitoring system" means any monitoring system that meets the requirements of section 11 ofthis rule, including acontinuous emissions monitoring system, an alternative monitoring system, oran excepted monitoring systern under40 CFR 75'. 

## fW1 (54) "Most stringent state orfederal NO emissions limitation" rneans, with regard to a unit, the lowest NO, emissions limitation, in terms of poundsxper million British Ihermal units (lb/MMBtu), that is applicable to the unit understate orfederal law, regardless of (he averaging period to which the emissions limitation applies. (,(;4) (55) "Nameplate capacity" means, starting frorn Ihe initial inslallalion of a generator, the rnaximum electrical generating output, in megawatt electrical (MWe), that the generator is capable of producing on a steady state basis and during conlinuous operation (when not reslricted by seasonal orotherderatings) as of such installation as specified by the manufacturerofthe generatoror, starting from the completion ofany subsequent physical change in the generator resulting in an incr88se in the maximum electrical generating output, in megawatt eleclrical (MWe), that the generator is capable of producing on a steady state basis and during continuous operation**(w~len** not restricted by seasonal orolherderatings) such increased maxirnurn amount as ofsuch**comp~etion** as specified bythe person conducting Ole physical change. 

## ree) (56) "Oil-fired" means, forthe purposes of section 8 ofthis rule, cOlllbuslin,) fuel oil for Illore Ihan fifteen percent (15%) ofthe annual Ileat input in a specified year and not qualifying as coal-fired. 

### f§eJ (57) "Operator" means any person who operales, controls, orsupervises a CAIR NO unil ora CAIR NO

source and shall include, but not be limited to, any

### ho~ding company, utility system, or plant rnanager ofsuch

# a
unil or sourCG, 

### (§+) (58) "Owner" Illeans any ofthe following persons:

Dale: May 29,2008 8:03:53AM EDT
, DIN:**2008052H-II~-J2608000!lP!~A** Page GIndiana Register (A) With regard to a CAIR NO source ora CAIR NO unit at a source, respectively, any ofthe following:

(i) 

### aflY Holderofany portion 6fthe legal orequltabl.ftitle in a CAIR NO unit at the source orthe CAIR NO 

### unit. x x (ii) 

### aflY Holderofa leasehold interest in a CAIR NO unit at the source orthe CAIR NO unit. 6f (iii) 

### aflY Purchaserof powerfrom a CAIR NO unit a'\the source orthe CAIR NO unit

### u~'der a life-of-the-unit, firm power contractual arrangi;ment; provided that, unless expresXsly provided for in a leasehold agreement, owner shall not include a passive lessor, or a person WllO has an equitable interest through such lessor, whose rental payments are not based, either directly or indirectly, on the revenues or income from such CAtR NO unit. 6f (B) With regard to any genera'l account, any person who has an ownership interest with respect to the CAIR NO allowances held in the general account and who is subjectto the binding agreement for the CAIR autRorized account representative to represent the person's ownership interest with respect to CAIR NO allowances. x 

## \&&J (59) "Permitting authority" means the state air pollution control agency, local agency, other state agency,
orother agency authorized bythe U.S. EPAto issue or revise permits to meetthe requirements ofthe CAIR NO annual trading program ifHleeordanee with seetion 7 ofthis ruie or, if no such agency has been so autRorized, the U.S. EPA. 

### (B9J (60) "Potential electrical output capacity" means thirty-three percent (33%) ofa unit's maximum design heat input, divided bythree thousand four hundred thirteen (3,413) Btu/kilowatt hour, divided by one thousand (1,000) kilowatt hour/megawatt hour, and multiplied by eight thousand seven hundred sixty (8,760) hours/year. 

### (6{}j (61) "Rated energy efficiency" means the percentage ofgross energy inputthat is recovered as useable net energy output in the form ofelectricity orthermal energy, or both, that is used for heating, cooling, industrial processes, or other beneficial uses as follows:

(A) For electric generators, rated energy efficiency is calculated as one (1) net kilowatt hour (three thousand four hundred twelve (3,412) British thermal units) of electricity divided bythe unit's design heat rate using the higher heating value ofthe fuel. (B) For combined heat and power projects, rated energy efficiency is calculated using the following formula: Eff% = (NEO 

### + UTO)/GEI

Eff% NEO UTO = Rated energy efficiency. Net electrical output ofthe system converted to British thermal units per unit oftime. Utilized thermal output orthe energy value in British thermal units ofthermal energyfrom the system that is used for heating, cooling, industrial processes, or other beneficial uses, per unit oftime. GEl 

### = Gross energy input, based upon the higher heating value offuel, per unit oftime. 

### (€i+)(62) "Receive" or "receipt of" means, when referring to the department or U.S. EPA, to come into possession ofadocument, information, or correspondence, whether sent in hard copy or

### by authorized electronictransmission, as indicated in an official log, or by a notation made on the document, information, or correspondence, by the department or U.S. EPA in the regularcourse of business. 

## t621 (63) "Recordalion"

, "record", or "recorded" means, with regard to CAIR NO allowances, the movement of CAIR NO allowances bythe U.S. EPA into or between CAIR NO allowance tra'cking system accounts, for purposesxofallocation, transfer, or deduction. x 

## fW1 (64) "Reference method" means any directtest method ofsampling and analyzing for an air pollutant as specified in 40 CFR 

### 75.22'. (64-) (65) "Replacement", "replace", or "replaced" means, with regard to a unit, the demolishing of a unit, orthe permanent shutdown and permanent disabling ofa unit, and the construction ofanother unit (the replacement unit) to be used instead ofthe demolished or shutdown unit (the replaced unit). 

### f6&) (66) "Repowered" means, With regard to a unit, replacement ofa coal-fired boilerwith one (1) of tile following**coal~fired** technologies at the same source as the coal-fired boiler: (A) atmospheric or pressurized fluidized bed combustion; (B) integrated gasification combined cycle; (C) magnetohydrodynamics; (D) direct and indirect coal-fired turbines; (E) integrated gasification fuel cells; or (F) as determined bythe U.S. EPA in consultalion with the Secretary of Energy, a derrvalive ofone (1) or
more of Ihe tecllnologies underclauses (A) through (E) and any other coal-fired technology capable at controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste reduction relative to the performance oftechnology in widespread commercial uso as of J;:muary 1, 2005. 

## f6&1 (67) "Sequential use of**ener~N"** means: (A) for a**toppin~)-cycle** cogeneration unit, the use of reject heat from electricity production in a useful thermal Where:

Delle' May29.200il 8:03-5:lAM ED'J DIN:**20080528-IH-32G080005F)f~A Pa~le**  7Indiana Register
energy application or process; or (B) for a bottoming-cycle cogeneration unit, the use of reject heat from useful thermal energy application or process in electricity production. 

## f6+1 (68) "Serial number" means, for a CAIR NO allowance, the unique identification numberassigned to 

# , each CAIR NO allowance bythe U.S. EPA. 

## teSJ (69) "Solid'waste incineration unit" means a stationary, fossil-fuel-fired boilerorstationary, fossil-fuel-fired combustion turbine that is a solid waste incineration unit as defined in the Clean AirAct, Section 129(g)(1). 

### (€fJ1(70) "Source" means all buildings, structures, or installations located in one (1) or more contiguous or adjacent properties undercommon control ofthe same person or persons. For purposes of Section 502(c) of the Clean AirAct, asource, including a source with multiple units, shall be considered a single facility. 

## f7G1 (71) "Submit" or "serve" means to send ortransmit adocument, information, orcorrespondence to the person specified in accordance with the applicable rule:

(A) in person; (B) by United States Postal Service; or (C) by other means ofdispatch ortransmission and delivery. Compliance with any submission orservice deadline shall be determined bythe date ofdispatch, transmission, or mailing and not the date of receipt by the department or U.S. EPA. 

## \+41 (72) "Title V operating permit" or "Part 70 operating permit" means apermit issued under326 lAC 2-7. 

## fRl (73) "Title V operating permit regulations" or "Part 70 operating permit regulations" means the rules under 326 lAC 2-7. (74) "Ton" means two thousand (2,000) pounds. Forthe purpose ofdetermining compliance with the CAIR NO emissions limitation, total tons of nitrogen oxides emissions for a control period shall be calculated

as the surt ofall recorded hourly emissions, orthe mass equivalent ofthe recorded hourlyemission rates, in accordance with section 11 ofthis rule, but with any remaining fraction ofa ton equal to orgreaterthan fifty-hundredths (0.50) tons deemed to equal one (1) ton and any remaining fraction ofa ton less than fifty-hundredths (0.50) tons deemed to equal zero (0) tons. 

### f74) (75) "Topping-cycle cogeneration unit" means a cogeneration unit in which the energy inputto the unit is first used to produce useful power, including electricity, and at least SOllle ofthe reject heatfrom the electricity production is then used to provide useful thermal energy. 

### (+§J (76) "Total energy input" means, with regard to acogeneration unit, total energy of all forms supplied to the cogeneration unit, excluding energy produced bythe cogeneration unit itself. Each form of energy supplied shall be measured by the lower heating value ofthatform ofenergy calculated as follows: LHV

### =HHV

- 10.55(W

### +9H)

Where: LHV = Lower heating value offuel in Btu/hr. HHV 

### = Higher heating value offuel In Btu/hr.



### W ::: Weight 

### %of moisture in fuel. H 

### = Weight 

### % of hydrogen in fuel. 

### (+§J (77) "Total energy output" means, with regard to acogeneration unit, the sum of useful powerand useful thermal energy produced by the cogeneration unit. 

## fRi (78) "Unit" means a stationary, fossil-fuel-fired boilerorcombustion turbine orotherstationary, fossil-fuel-flred combustion device. 

### (+<lJ (79) "Unit operating day" means a calendar day in which a unit combusts anyfuel. 

## f7G1 (80) "Unit operating hour" or "hourof unit operation" means an Ilour in whicll a unit combusts anyfuel. 

### fSG-) (81) "Useful power" means, with regard to a cogeneration unit, electricity or mechanical energy made available for use, excluding any such energy used in the power production process, which process includes, but is not limited to, anyon-site processing ortreatment offuel combusted at the unit and anyon-site emission controls. 

## f8-B (82) "Useful thermal energy" means, with regard to a cogeneration unit, thermal energy that is: (A) made available to an industrial orcommercia! process, no! a power production process, excluding any heat contained in condensate return or makeup water; (B) used in a heating application (forexample, space Ileating ordomestic hot water heating); or (C) used in aspace cooling application (that is, thermal enel·gy used by an absorption chiller). 

### (ll21 (83) "Utility powerdistribution system" means the portion ofan electricity grid owned oroperated by a utilityand dedicated to delivering electricityto customers,
"These documents are incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitol Street NW, Wasllington, D.C. 20401 orare available for review and copying atthe Indiana Department of Environmental Management, Office ofAir Quality. Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue. Indianapolis, Indiana 46204. 

### (AirPollution ControtBoard,**l-~6IAr:.21:.1-2,** 

### filedJan 26,2007, 10.'258.171

..**20QZQ22.1.:jB..:l~9.Q5QLUFr'./j,** 

### errat8

Dale: May 29,2008 8:03:53AM [[)"J DIN: 2008052H-If:.(-3260S0005PFU\ Page 8Indiana Register


### filedJan 29, 

### 2007, 2:43

### p.m.: 20070221-IR-326050117 ACA)

SECTION 2

..:326 lAC 24-1-7 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-1-7 Permit requirements Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: 1.<::LJ·J5; 1.<::J.:J:J7

Sec. 7. (a) Foreach CAIR NO source required to have afederally enforceable permit, the permit shall include

a CAiR permit administered by

### th~ department as follows: (1) ForCAIR NO sources required to have a Part 70 operating permit under326 lAC 2-7, tl1e CAIR porlion of the Part 70 operiting permit shall be administered in accordance with 326 lAC 2-7, except as provided otherwise by this section and sections 3and 12 ofthis rule. (2) ForCAIR NO sources required to have a FESOP under 326 lAC 2-8, the CAIR portion of Ihe FESOP shall be administered

### ~n accordance with 326 lAC 2-8, except as provided otherwise bythis section and sections 3 and 12 ofthis rule. (3) Each CAIR permit, including a draft or proposed CAIR permit, ifapplicable, shall contain, with regard to the CAIR NO source and the CAIR NO units atthe source covered by the CAIR permit, all applicable CAIR NO annual triding program, CAIR NO 6zone season trading program, and CAIR SO, trading program ' requirements and shall be a comprete and separable portion ofthe Part 70 operartng permit or FESOP.

(b) Requirements forthe submission of CAIR permit applications are as follows: (1) The CAIR designated representative ofany CAIR NO source required to have a Part 70 operating permit

or FESOP shall submitto the department a complete CAi'R permit application undersubsection (c) forthe

source covering each CAIR NO unit at the source at leasttwo hundred seventy (270) days before the lalerof January 1,2009, orthe date onxwhich the CAIR NO unit commences commercial operation, except as provided in section 12(e) ofthis rule. x (2) Fora CAIR NO source required to have a Part 70 operating permit or FESOP, the CAIR designated representative shaD submit acomplete CAIR permit application undersubsection (c) forthe source covering each CAIR NO unit atthe source to renew the CAIR permit in accordance with 326 lAC 2-7-4(a)(1 )(D) or326 lAC 2-8-3(h),

### a~ applicable, except as provided in section 12(e) ofthis rule.

(c) In addition to the requirements of 328 lAC 2 7 4(0) or 328 lAC 28 

### 3{€1-;A complete CAIR permit application shall include the following elements concerning the CAIR NO source forwhich the application is submitted: x (1) Identification ofthe CAIR NO source. (2) Identification ofeach CAIR Nb unit attl1e CAIR NO source. (3) The standard requirements under section 4 ofthis ru1e,

(d) IA addition 10 II1fH8{jtfifBfflents

..tmdGf-;l;26 INc.2 

### ;Z or326**L~c** 2 8, Each CAIR permit sl1all contain, in a format prescribed bythe department, all elements required for a complete CAIR permit application under subsection (c).

(e) Each CAIR permit is deemed to incorporate automatically the definitions ofterms undersection 2of Ihis rule and, upon recordation by the U.S. EPA under section 8, 9,10, or 12 ofthis rule, every allocation, tran51er, or deduction of aCAIR NO allowance to orfrom the compliance account ofthe CAIR NO source covered by the 

# .. . permit.



### (I) The initial CAIR permit coveling a CAlr, unitfor which acomplete CAIR pel'mit application is timely submitted under subsection (b) shall become effective upon issuance.

(g) The term ofthe CAIR permit shall be set bythe department, as necessaryto facilitate coordination of Ihe renewal ofthe CAIR permit with issuance, revision, or renewal ofthe CAIR NOxsource's Part 70 operating perrnit

or FESOP.

Date: May 29,2008 8:03:53AM ED"! DIN.**20080528·IF1"326080005pr~A**Indiana Register
(h) Except as provided in subsection (e), the department shall revise the CAIR permit, as necessary, in accordance with the following: (1) The permit modification and revision provisions under 326 lAC 2-7, for a CAIR source with a Part 70 operating permit. (2) The permit modification and revision provisions under 326 lAC 2-8, for a CAIR source with a FESOP. 

### (AirPollution ControlBoard; 326.

### lAC24-1-7; 

### filedJan 26, 

### 2007, 10:25a.m.:

### 2007Q22L,fB,326.D..fJQ1..1ZEBA)

SECTION 3 326 lAC 24-1-8 IS AMENDED TO READ AS FOLLOWS

326 lAC 24-1-8 CAIR NO allowance allocations 

# , Authority: Ie 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 8. (a) Ti,e trading program budget allocated bythe department under subsections (d) Ihrough (h) for each control period shall equal the CAIR NO allowances apportioned to the CAIR NO units undersection 1 ofthis rule, as determined by the procedures (n this section. The total numberofCAIR

# no allowances that are available for each control period for annual allocations of CAIR NO allowances underthis

### rUI~ are one hundred eight thousand nine hundred thirty-five (108,935) tons in 2009 through 2014 and ninetythousand seven hundred seventy-nine (90,779) in 2015 and thereafter, apportioned as follows: (1) Forexisting units (that is, units that have a baseline heat input, as determined undersubsection (c)(1 )):

(A) one hundred three thousand four hundred eighty-eight (103,488) tons for CAIR NO, units in 2009 through 2014; and (B) eighty-eightthousand fifty-five (88,055) tons for CAIR NO units in 2015 and thereafter. (2) For new unit allocation set-asides: x

(A) four thousand nine hundred two (4,902) tons for CAIR NO units in 2009 through 2014; and (B) two thousand two hundred seventy (2,270) tons forCAIR

# Kia units in 2015 and thereafter. (3) Forthe energy efficiency and renewable energy allocation set-a%ides:

(A) five hundred forty-five (545) tons for CAIR NO units in 2009 through 2014; and (B) four hundred fifty-four (454) tons for CAIR NO' units in 2015 and thereafter.


# ,
(b) The department shall allocate CAIR NO, allowances to CAIR NO, units according to the following schedule: (1) Within tllirty (30) days ofthe effective date ofthis rule, the department shall submitto the U.S. EPA the CAIR NO allowance allocations, in aformat prescribed by tile U.S. EPA and in accordance with subsections (c) and 

## (d), forthe control periods in 2009,2010,2011,2012,2013, and 2014.

. (2) By October 31,2008, and October31 every six (6) years thereafter, the department shall submit to the U.S. EPA the CAIR NO allowance allocations, in a format prescribed bythe U.S. EPA and in accordance with subsections (c) and (d),'fortile control periods seven (7), eight (8), nine (9), ten (10), eleven (11), and twelve (12) years afterthe year ofthe allowance allocation. (3) ByOctober 31,2009, and October31 ofeach yearthereafter, the department shall submit to the U.S. EPA the CAIR NO allowance allocations, in aformat prescribed bythe U.S. EPA and in accordance wilh subsections

# (h (e), and (f), forthe conlrol period in the year ofthe applicable deadline for submission under this rule. (4) The depmlment shall make available for review to the publictile CAIR NO allowance allocations under subdivision (2) on July 31 of each year allocations are made and shall provide'a thirty (30) day opportunily for submission ofobjections 10the CAIR NO allowance allocalions. Objections sl1all be limited to addressing whetherthe CAlR NO allowance allocations are in accordance with this section. Based on any such 

# , objections, Ille department shall consider any objections and input from affected sources and, ifappropriale, adjust each determination to the extent necessary to ensure that 

### it is in accordance with this section.

(c) Tile baseline Ileal inpul, in million Britisl1 Ihermal unils (IviMBtu) used witl1 respect to CAIR NO allowance allocations undersubseclion (d) tor each CAIR NO unil sl1all be as lollows: ' (1 ) For units commencing operation before JanGary 1,2001:

(A) For a CAIR NO allowance allocation under subseclion (b)(I), Ihe average of Ille Ihree (3) l1ighest arrlOunts ofthe unit\ acJjusted control period heat input for 1998 through 2005, with the adjusted control period heal input for each year calculated as follows:

Date: May 29,200g 8:035:3Ar\ll EIYl DIN:**20080~)28·IH-32601l0U05PF(A** Page '10Indiana Register (i) Ifthe unit is coal-fired during the year, the unit's control period heat inputfor such year is multiplied by

one hundred percent (100%), (ii) Ifthe unit is oil-fired during the year, the unit's control period heat inputfor such year is multiplied by sixty percent (60%), (iii) Ifthe unit is not subjectto item (i) or (ii), the unit's controt period heat input for such year is multiplied by forty percent (40%), (B) Fora CAIR NO allowance allocation under subsection (b)(2), the average ofthe three (3) highest amounts ofthe unit's adjusted control period heat input forthe eight (8) years before when the CAIR NO allocation is being calculated, with tl1e adjusted control period 11eat inputfor each year calculated as follo'ws:

(il Ifthe unit is coal-fired during the year, the unit's control period heat inputfor such year is multiplied by

one hundred percent (100%), (ii) Iftl1e unit is oil-fired during the year, the unit's control period heat input for such year is multiplied by sixty percent (60%), (iii) Ifthe unit is not subject to item (i) or (ii), the unit's control period heat input for such year is multiplied by forty percent (40%), (2) For units commencing operation on or afterJanuary 1, 2001, and operating each calendar yearduring a period ofthree (3) or more consecutive calendaryears, the average ofthe tl1ree (3) highest amounts ofthe unit's total converted control period heat input forthe years before when the CAIR NO, allocation is being calculated, notto exceed (8), (3) A unit's control period heat input, and a unit's status as coal-fired or not coal-fired, for a calendaryear undersubdivision (1), and a unit's total tons of NO emissions during a control period in calendaryear under subsection (e), shall be determined in accordanceXwith 40 CFR 75', to the extentthe unitwas otherwise subjectto the requirements of40 CFR 75' forthe year, orshall be based on the best available data reported to the department forthe unit, to the extentthe unitwas not otherwise subject to the requirements of40 CFR 75' forthe year, (4) A unit's converted control period heat inputfor acalendaryear undersubdivision (2) equals one (1) ofthe following: (A) The control period gross electrical output ofthe generator or generators served bythe unit multiplied by eightthousand nine hundred (8,900) British thermal units per kilowatt hour (Btu/kWh) for coal-fired units or
seven thousand six hundred (7,600) British thermal units per kilowatt hour (Btu/kWh) for a unitthat is not coal-fired divided by one million (1,000,000) British thermal units per million British tl1ermal units (Btu/MMBtu), provided that if agenerator is served by two (2) or more units, then the gross electrical output ofthe generator shall be attributed to each unit in proportion to the unit's share ofthe total control period heat input ofsuch units lortl1e year, (B) Fora unitthat has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, orcooling purposes through the sequential use of energy, the control period gross electrical output ofthe unit multiplied by eigl1t thousand nine hundred (8,900) British thermal units per kilowatt hour (Btu/kWh) plus the useful energy, in British thermal units (Btu), produced during the control period divided by eight-tenths (0,8), and with the sum divided by one million (1,000,000) British thermal units per million British thermal units (Btu/MMBtu),

(d) Foreach control period in 2009 and thereafter, tl1e department shall allocate to all CAIR NO units that have a baseline heat input, as determined undersubsection (c), a total amount ofCAIR NO allowinces as listed in subsection (a)(1), except as provided in subsection (f), The department shall allocate CArR NO allowances to each CAIR NO unit in an amount determined by multiplying the total amount undersubsection (a)(1) bythe ratio ofthe baselinel1eat input ofsuch CAIR NO unitto the total amount of baseline heat input ofall such CAIR NO units and rounding to the nearest whole allowance as appropriate. x

(8) Foreach control period in 2009 and thereafter, the department shall allocate CAIR NO allowances to CA1R NO units that commenced operation on or afterJanuary 

### 1,2001, and do not yet have

# abaseline 118at input, as determined undersubsection (c), in accordance with the following procedures: (1) The department shall establisl1 a new unit set-aside for each control period equal to the following

(A) Four thousand nine hundred two (4,902) tons for a control period during 2009 through 2014. (B) Two thousand two hundred seventy (2,270) tons for CAIR NO, units for acontrol period durinq 2015 and thereafter, (2) The CAlF, designated representative ofsuch a CAIR NO unit may submit to the department a request, in a format specified by the department, to be allocated CAIR

## NO allowances, startinq with the laterofthe control period in 2009 orthe first control period afterthe control period in which the CAIR NO unit commences commercial operation and until the first control period for which the unit is allocated CAIR NO allowances under subsection (d). A separate

### CAII~ NO allowance allocation request for each control pertod for which


# ,

Date: May29,7008 8:03:53AM EDT DIN: 2008052g

..**lr~<326080(]05Pf~A** Paqe 11Indiana Register CAIR NO allowances are sought must be submitted on or before May 1 of such control period and afterthe date on which the CAIR NO unit commences commercial operation. (3) In a CAIR NO allowanc& allocation request undersubdivision (2), the CAIR designated representative may request for a'control period CAIR NO allowances in an amount not exceeding the CAIR NO unit's total tons ofNO emissions during the calendar'year immediately before such control period. ' (4) The department shall review each CAIR NO allowance allocation request undersubdivision (2) and shall x . allocate CAIR NO allowances for each control period pursuant to such request as follows: (A) The departn':ent shall accept an allowance allocation request only ifthe request meets, or is adjusted by the department as necessary to meet, the requirements of subdivisions (2) and (3). (B) On orafter May 1 ofthe control period, the department shall determine the sum ofthe CAIR NO allowances requested, as adjusted underclause (A), in all allowance allocation requests accepted ,,'nder clause (A) forthe control period. (C) Ifthe amountofCAIR NO allowances in the new unit set-aside forthe control period is greaterthan or x equal to the sum underclause (B), then the department shall allocate the amount ofCAIR NO allowances requested, as adjusted underclause (A), to each CAIR NO unit covered by an allowance allobation request 

# , accepted underclause (A). (D) Iftile new unit set-aside forthe control period forwhich NO allowances are requested has an amount of NO allowances less than the number requested, as adjusted uXnderclause (A), butthe energy efficiency and'renewable energy allocation set-aside is under-subscribed, the department shall allocate the amount of the NO allowances requested with the difference allocated from the energy efficiency and renewable energ/allocation set-aside. (E) Ifthe amount ofCAIR NO allowances in the new unit set-aside forthe control period is less than the

sum underclause (B), and th& energy efficiency and renewable energy allocation set-aside is over subscribed, then the department shall allocate to each CAIR NO unitcovered by an allowance allocation request accepted underclause (A) the amount ofthe CAIR NO

### ~lIowances requested, as adjusted under clause (A), multiplied bythe amount ofCAIR NO allowances

### i~ the new unit set-aside forthe control period, divided bythe sum determined underclause (B),xand rounded to the nearestwhole allowance as appropriate. (F) The department shall notify each CAIR designated representative that submitted an allowance allocation request ofthe amount ofCAIR NO allowances, ifany, allocated forthe control period to the CAIR NO unit covered bythe request and submit'lhe CAIR NO allowances to U.S. EPA according 10 subsection (b)(3).


# ,
(f) If, aftercompletion ofthe procedures undersubsection (e)(4) for a control period, any unallocated CAIR NO, allowances remain in the new unit set-aside forthe control period, the department shall allocate to each CAIR NO unitthat was allocated CAIR NO allowances undersubsection (d) an amount ofCAIR NO allowances equal to the total amount of such remaining'unallocated CAIR NO allowances, multiplied by the unit'tallocalion undersubsection (d), divided by one hundred three thousand fourxhundred eighty-eight (103,488) for a control period during 2009 through 2014, and eighty-eightthousand fifty-five (88,055) for acontrol period during 2015 and thereafter, rounding to the nearestwhole allowance as appropriate.

(g) In addition to the CAIR NO allowances allocated undersubsections (c) through (f), the department shall allocate forthe control period in 2609 up to twentythousand one hundred fifty-five (20,155) compliance supplement pool NO allowances to CAIR NO units, in accordance with this section. First, the department shall

reserve allowances tOr eligible units and

### assig~ the reserved allowances in accordance with subdivisions (2) and (3). Tilen, the departmentwill allocate earned CAIR NO allowances and surplus CAIR NO allowances in

. . .. .. x x accordance WIth subdiVISion (S): (1) The following terms and meanings apply 10 Ihis seclion: (A) "Baseline emission rate" means the heal inputweighted average NOxemission rate for 2003 through 2005 (excluding May 1 through September30 ofeach year). (B) "Eligible unit" or "eligible units" means a CAIR NO unitthat:

(i) is a coal-fired unit Olatwill be required to comply

### ~ith CAIR aJlnual NO emission limitations beginning


# , January 1, 2009; (ii) has orwill have:

(AA) post-combustion NO control equipment, or shares a common stackwith a unitthat has or will have post-combustion NO confrol equipment installed before December31, 2008; or (B8) for all other unit'S be able 10 achieve a NO emissions rate that is at leasl ten percent (10%) lower than the heat inputweighted average NO emitsion rate for 2003 through 2005 (excluding May 1 through


## , September 30 ofeach year); (iii) has an established baseline emissions rate; (Iv) for which the department has approved its application in accordance with subdivision (2); and

Dale" May 29,2008 8:03:53Af'vl ED! DIN:**20080528-11~-32G08000!)PI~A** Page 12Indiana Register (v) for which the unit in item (ii)(BB) achieves in 2007 or2008, or both (excluding May 1 through September30 ofeach year), a NO emissions rate at leastten percent (10%) lowerthan the baseline emissions rate. x (C) "Emission reduction" or "emission reductions" will be calculated, in tons peryear, in accordance with the following formula:

Emission reductions 

### =[eligible unit's actual heat inputfor 2007 or2008, or both (excluding May 1 through September30 ofeach year) x eligible unit's baseline emission rate]

- [eligible unit's actual heat input for 2007 or2008, or both (excluding May 1 through September30 ofeach year) x actual NO, emission rate (excluding May 1 through September30 ofeach year)]l2000. (D) "Reserved allowance" means an allowance from the compliance supplement pool that the department

reserves for an eligible unit. Reserved allowances have no independentvalue and cannot be traded until afterthey are earned and allocated as CAIR NO allowances to an eligible unit. (E) "Unit's excess emissions reductions" means'One (1) ofthe following:

(i) TI1e eligible unit's tons of NO emission reductions in excess ofits reserved allowances x 1.5for units with all ofthe following control e'quipment installed:

(AA) Electrostatic precipitator. (BB) Selective catalytic reduction. (CC) Flue gas desulfurization. (ii) The eligible unit's tons of NO emission reductions in excess of its reserved allowances x 1.0 for all other units. x (2) To receive reserved allowances, the designated representative for a CAIR NO unit must submit an application to the department, in aformat specified bythe department, within thirty(30) days ofthe effective date ofthis rule, demonstrating that it satisfies subdivision (1 )(B)(i) through (1 )(B)(iii). The department shall approve ordeny the application within one hundred twenty (120) days after receipt ofthe application and designate the amount ofallowances 

### it has reserved forthat unit atthat time. (3) The department shall assign reserved allowances to each eligible unit, based on the following formula:

Amount of reserved allowances, in tons peryear = (eligible unit's baseline heat input as defined in subsection (c) '" sum of baseline heat input from all eligible units as defined in subsection (c)) x (95% x 20,155). The amount of reserved allowances shall be determined separately each year, 2007 and 2008, dependin9 upon the numberof approved applications for eligible units each year. No more than fifty percent (50%) ofthe compliance supplement pool shall be reserved for eligible units in 2007. The remainder ofthe compliance supplement pool shall be reserved for eligible units in 2008 and any demonstrations of need. (4) In orderto receive CAIR NO allowances from the compliance supplement pool the following conditions must be met: x

(A) The owners and operators ofan eligible unit shall monitorand report Ihe NO emissions rate and the heat input ofthe unit in accordance with section 11 ofthis rule in each control pexriod forwhich early reduction credit is requested. (8) TI1e CAIR designated representative ofan eligible unit shall submitto the department by May 1,2009, a request, in aformat specified bythe department, for allocation ofan amount of CAIR NO allowances from the compliance supplement pool identifying the amount oftons ofemissions reductions 

### ifhas achieved and demonstrating that it has satisfied subdivision (1). (C) The actual NO emission rate used in the emissions reduction calculation in subdivision (1 )(C) shall be the monitored NOxemission rate for 2007 or2008, respectively. (D) Units that share a common stack shall meetthe following requirements:

(i) Foreach eligible unit that is part of acommon stack group the restriction in subdivision (1 )(B)(ii)(BB) is applied to the entire common stack group except as provided in item (ii). (ii) For acommon stack group that has a least one (1) unitwith post-combustion NO control equipment, the restriction in subdivision (1 )(B)(ii)(AA) for post-combustion NO control equipmen'\ shall apply to the enUre common stack group. x (E) No more than fifty percent (50%) ofthe compliance supplement pool shall be reserved orallocated for emission reductions orexcess emission reductions implemented in 2007. The remainder ofthe compliance supplement pool shall be allocated for emission reductions orexcess emission reductions implemented in 2008 and demonstrations of need. (5) The cleparlment shall review each request undersubdivision (4) and shall allocate CAlF< NO allowances from the compliance supplement pool forthe control period in 2009 to CAIR NO units, in accordance with the following procedures: x

(A) Upon receipt ofeach such request, Ihe departrnent shall make any necessary adjustrnenls 10 the request to ensure that the amount ofthe CAIR NO allowances requested meets the requirernents of subdivisions (3) and (4), Ifan eligible unit achieveJernission I'eductions less Ulan orequivalentto the reserved allowances assigned to it under subdivision (3), Ihe department shall allocate**CAII~** NO allowances from the compliance supplement pool to the eligible unit equal to the actual emissionxreductions

Date May29.2008 8:03:53AM Em DIN: 20080528

..IF";·326080005f)HA

### Indiana Register
achieved bythe eligible unit. Any reserved allowances not earned byan eligible unit shall remain in the compliance supplement pool to be distributed in accordance with clause (C). (B) To the extent an eligible unit achieved emission reductions in excess ofthe reserved allowances assigned to it undersubdivision (3), the department shall allocate CAIR NO allowances to the eligible unit equal to the amount ofits reserved allowances, plus additional CAIR NO aOowances, ifany, from the compliance supplement pool in accordance with clause (C). ' (C) Any CAIR NO allowances that remain in the compliance supplement pool following allocation required by clauses (A) ana (B) shall be allocated to eligible units that achieved emission reductions in excess of their reserved allowances. Tile departmentshall make allocations ofthe remaining CAIR NO allowances in accordance with the following formula: ' An eligible unit's additional CAIR NO allowances from the compliance supptement pool = 

### (unit's excess emissions reductions! the total tons

# 01 adjusted excess NO emissions reductions achieved byall eligible units) xthe total of remaining CAIR NO allowances in the

### ~ompliance supplement pool following allocation underclauses (A) and (B). In no case sAal1 the actual amount ofadditional CAIR NO allowances awarded in this clause exceed the numberofactual emission reductions achieved in excess

# otthe reservation under 

### subdivision (3). (6) Forany CAIR NO. unitwhose compliance with CAIR NO emissions limitation forthe control period in 2009 would create an'undue risk to the reliability ofelectricitysupplyduring such control period, the CAIR designated representative ofthe unit may request the allocation of CAIR NO allowances from the compliance

. .. x 

### supplement pool In accordance With the follOWing:

(A) The CAIR designated representative ofsuch CAIR NO unitshall submit to the department by May 1, 2009, a request, in aformat specified bythe department, fbr allocation of an amount ofCAIR NO allowances from the compliance supplement pool not exceeding the minimum amount ofCAIR Nt allowances necessaryto remove such undue risk to the reliability ofelectricitysupply. x (B) In the request underclause (A), the CAIR designated representative ofsuch CAIR NO unitshall demonstrate that, in the absence ofallocation to the unitofthe amount ofCAIR NO allowances requested, the unit's comptiance with CAIR NO emissions limitation forthe control period in 2d'o9 would create an undue riskto the reliability ofelectri{ity supply during such control period. This demonstration must include a 

### showing that itwould not be feasible forthe owners and operators ofthe unitto:

(i) obtain asufficient amount ofelectricity from otherelectricity generation facilities, during the installation of control technology atthe unit for compliance with the CAIR NO emissions limitation, to prevent such 

### undue risk; or x 

### (ii) obtain undersubdivisions (5) and ('I), 

### orotherwise obtain, asufficient amount of CAIR NO allowances

. 

# , to prevent such undue rlsk. 

### (7) The department shall review each request undersubdivision (6) and shall allocate CAIR NO allowances, notto exceed one thousand eight (1,008) allowances, forthe control period in 2009 to CAIR No' units covered

. . . . x 

### by such request. If no requests for allowances are received undersubdiVISion (6), the allowances shall be available for allocation undersubdivision (5)(C). (8) By November30,2009, the department shall determine, and submitto the U.S. 

### EPAthe allocations of CAIR NO allowances from the compliance supplement pool undersubdivisions (5) and (7). (9) By Jaiiuary 1,2010, the U.S 

### EPAwill record the allocations undersubdivision (8).

(h) Forprojects that reduce NO emissions through the implementation ofenergyefficiency or renewable energy measures, or both,

### implem~nted during a control period beginning January 1,2009, the department shall allocate NO allowances in accordance with the following procedures: (1) The €nergyefficiency and renewable energyallocation set-aside shall be allocated NO allowances equal

. 

# . to the follOWing: (A) Five hundred forty-five (545) tons for a control period during 200911"ough 2014. (B) Four hundred fifty-four (454) tons for a control period during 2015 and thereafter. (2) Any person may submit to the departmenta request, in writing, or in aformat specified by the department, for NO allowances as follows (A) Sponsors of energyefficiency or renewable energy projects in section 2tJ8)(A)2(39)(A) through**~tHl2(39)(H)** 

### ofthis rule may request the reservation of NO allowances, for one (1) control period in which the project is implemenled Project sponsors may reappl/each year, notto exceed five (5) control periods for energy efficiency plOjects ill sections**2tJ8)(A~8)(B~fl&)(tt;** 

### 2(39)(A), 2(39)(B), 2(39)(E), and**~(F)** 

### 2(39)(F) ofthis rule and for all unlimited numberofyears for projects in sections 2tJ8)fGj, 2(38)(D), 2(39)(C), 2(39)(0), and 2(38)(H) 2(39)(H) ofthis rule. Requests for allowances may be made for projects implemented two (2) years before the effective date ofthis rule Projects must equal at least one (1) ton of 

### NO emissions and multiple projects ITlay be aggregated into one (1) allowance allocation request to equal onex(1) or more tons of NO emissions

. 

# •

Date: May29,2008 8:03:53AIvl EDT DIN:**20080~)28-11~-32608000~)PF<A**Indiana Register (B) The NO allowance allocation request must be submitted by May 1 ofthe calendaryearforwhich the NO allowaAce allocation is requested. (C)"rhe NO allowance allocation request for an integrated gasification combined cycle project under section 2(3ol)(G) 2(39)(G) ofthis rule must be submitted by May 1 ofthe calendaryearforwhich the NO allowance allocation is requested and afterthe date on which the department issues a permit to construEt the CAIR NO unit. For integrated gasification combined cycle projects, project sponsors may request the reservation ofNO allowances, based on the numberofkilowatt hours ofelectricity generated based on an eighty-five percenl (85%) capacity factor and expected heat rate ofthe unit. Project sponsors may reapply each year, not to exceed five (5) control periods. ",equests for allowances may be made only for inlegrated gasification combined cycle projects which first start commercial operations in 2009 and beyond. (3) In a NO allowance allocation request made underthis subsection, the project sponsor may request for a control

### peri~d, NO allowances not to exceed the following:

(A) Projects in s§ction 2(38)(A) 2(39)(A) ofthis rule that claim allowances based upon reductions in the consumption ofelectricity and that are sponsored by end-users or nonutilitythird parties receive allowances based upon the numberof kilowatt hours ofelectricity saved during acontrol period and the following formula: Allowances 

### = (kWS x 0.0015)/2,000

Allowances kWS = The numberofallowances awarded to a project sponsor.



### = The numberof kilowatt hours ofelectricity saved during a conlrol period by tile project. (B) Projects in section 2(38)(,',) 2(39)(A) ofthis rule that claim allowances based upon reductions in the consumption of electricity and that are sponsored by electric generating units shall be awarded allowances according to the following formula: Where:

Allowances = (kWS x 0.00075/2,000)

Allowances kWS The numberofallowances awarded to a project sponsor. The numberofkilowatt hours ofelectricity saved during acontrol period bythe project. (C) Projects in section 

### ;>(.;>&)(A) 2(39)(A) ofthis rule that claim allowances based upon reductions in the consumption ofenergy otherthan electricity and that are not CAIR NO units shall be awarded allowances according to the following formula: ' Allowances = (((Et1/Pt1)

- (Et2/Pt2)) x Pt2 x NPt2 x (NPt1/NPt2))/2,000 Where:

Where: Allowances = Et1 = Pt1 = Et2 = Pt2
NPt1 The numberofallowances awarded to a project sponsor. Energy consumed per control period before project implementation. Units ofproduct produced per control period before project implementation. Energy consumed in the most recent control period. Units of product produced in the most recent control period.
NO produced during the consumption of energy, measured in pounds per million


# , British thermal units before project implementation.

NPt2 " NO produced during the consumption ofenergy, measured in pounds per million


# , British thermal units in the most recent control period. (D) Projects in section 2(38)(A) 2(39)(A) ofthis rule that claim allowances based upon reductions in the consumption ofenergy otllerthan electricily and that are CAIR NO units shall be awarded allowances according to the following formula: x Allowances" (((Et1/PI1)

- (Et2/Pt2)) x Pt2 x NPt2 x (NPt1/NPt2) x 0.5)/2,000

Allowances Et1 Pt1 Et2 Pt2
NPt1 The number ofallowances awarded to a project sponsor. Energy consumed per control period before project implementation. Units ofpl"Oduct produced per contra) period before project implementation. Energy consumed in the most recent control period. Units ofproduct produced in the most recent control period.
NO

x produced during the production process, measul'ed in pounds per million
S'ritish thermal units before project implementation.

NPt2 :::: NO

x produced during the production process, measured in pounds per million
Srilisll thennal units in the most recent control period.
Product produced, as used in the formulas in this clause and clause (C), may include manufactured iterns; Where:

Dale May 29,2008 80353Afv1 E:lYI DIN: 20080:i28·IFI·326080005PHAIndiana Register

NO


# ,

NO CHP
x Where:

Allowances kWG Allowances kWG raw, intermediate, orfinai materials; or other products measured in discrete units and produced as a result ofthe consumption of energy in aspecific process or piece ofequipment. Claims for allowances must include documentation of NO emissions per British thermal unit both before and after implementation ofthe project for the energy-consurliing process for which energy savings are claimed. (E) Projects in section**~f&)** 2(39)(B) ofthis rule that claim allowances based upon highly efficient electricity generation using systems such as combined cycle, microturbines, and fuel cell systems for the predominant use ofa single end user, that meetthe thresholds specified in section 2(38)([;) 2(39)(8) ofthis rule, that are not CAIR NO units under section 1 ofthis rule, and that are sponsored by end-users or
nonutilitythird parties,

### rece~ve allowances based upon the net amount ofelectricity generated during a control period and the following formula: Allowances (kWG x (0.0015-NO, 

### ))/2,000

- Tile numberofallowances awarded to a project sponsor. The numberof net kilowatt hours ofelectricity generated during a control period by tile proJect.
The amount of NO produced during the generation of electricity, measured in x pounds per kilowatt hour. (F) Projects in section 2(38)([;) 2(39)(8) ofthis rule that claim allowances based upon highly efficient combined heat and power systems for the predominant use ofa single end user, that meetthe thresholds specified in section 2(38)(8) 2(39)(8) ofthis rule, that are not CAIR NO units undersection 1 of this rule, and that are sponsored by end-users or nonutilitythird parties, receive §lIowances based upon the net amount ofenergy generated and used during a control period and the following formula: Allowances (NO conventional

- NO CHP)/2,000 x x Allowances = The numberofallowances awarded to a project sponsor. NO conventional [(0.15 x 3,412 x kWG 

### 10.34) + (0.17 x HeatOut! 0.8)] 

### 11,000,000
x (Btuln x NO 

### Rate)/1,000,000 x

_ kWG The numberofnet kilowatt hours ofelectricity generated during a control period by the project. HeatOut = The numberof British thermal units (Btu) of heat or steam effectively used for space, water, or industrial process heat during a control period by the project.
NO,Rate NOx emitted during normal system operation by the project,
measured in pounds per million Btu offuel input.
Btuln The numberof British thermal units (Btu) offuel used to produce electricity, heat, or steam during a control period bythe project. (G) Projects in section**~fB)** 2(39)(8) and 2(38)(G) 2(39)(G) ofthis rule receive allowances based upon the numberof kilowatt hours ofelectricity each project generates during a control period. Highly efficient electricity generation projects using systems such as combined cycle, microturbines, and fuel cell systems for the predominant use ofa single end user, that meet a rated energy efficiencythreshold of sixty percent (60%) for combined cycle systems and forty percent (40%) for microturbines and fuel cells; or integrated gasification combined cycle, and that are sponsored by NO allowance account holders that own or operate units that produce electricity and are subject to the emissiol\ limitations ofthis rule shall receive allowances based upon the net amount ofelectricity generated during a control period and the following formula: Allowances (kWG x (0.0015

- NO) x 

### 0.5)/2,000

The numberof allowances awarded to a project sponsor. , The numberof net kilowatt hours ofelectricity generated during a control period**by~."** the project.

- NO

x :;: The amount of NO

x pmduced during the generation of electricity, measured in pounds per kilowatt hour. (H) Projects in sul)division (2) and specified in section 2(38)(G) 2(39)(C) and**~f912(39)(D)** of this rule receive allowances based upon the numberof kilowatt hours of electricity each project generates during a control period and**accordin~J** to the following formula: Allowances (kWG x 

### 0.0015)/2,000 Where:

Where:

Where:

Where Allowances kWG The nurnbol- of allowances awarded to a project sponsor.
:;:**Th~** number of kilowatt hours of electricity generated during a control period by the project.

Date: M<lY 29,2008 8:03:53AM f::DT DIN:**20080528·1f-{·3260S0005PI~A** Page 16

### Indiana Register (I) Projects in subdivision (2) and specified in section 2(38)(E) anEh!f381\F1 2(40)(E) through 2(40)(G) of this rule receive allowances based upon the difference in emitted NO per megawatt hourofoperation for units before and after replacement or improvement and according to i'he following formula: Allowances = 

### ((Et1

- Et2) x h) x0.5)/2,000

Where: Allowances = 

### The numberof allowances awarded to a project sponsor. EI1 = 

### The emission rate in pounds per megawatt hourof NOx

### ofthe unit before improvement or replacement.

Allowances

NO Rate
x 

### HeatOut Et2 

### = The emission rate in pounds per megawatt hourof NO ofthe unit after x 

### improvement or replacement.
h = 

### The numberof megawatt hours ofoperation during the control period. (J) Projects in section**~(A)** 

### 2(39)(A) ofthis rule based upon energy efficiencyotherthan electricity savings shall be awarded allowances according to the following formula: Allowances = 

### (NO Rate x HeatOut 

### 10.8)/1,000,000/2,000 x



### = The numberof allowances awarded to a project sponsor.



### = 0.17 Ib/MMBtu ortile actual NO emission rate, whichever is greater. x

= 

### The number of British thermal units (Btu) of heat orsteam effectively used for space, water, or industrial process 11eatduring a control period bythe project. (K) Projects in section 2(38)(11) 2(39)(H) ofthis rule using renewable energyto displace coal, natural gas, or oil combustion and reduce NO emissions shall be awarded allowances according to the following formula: Allowances = 

### ((0.17 x Fuel-lnput)/1 

### ,000,000)/2,000

Allowances The numberofallowances awarded to a project sponsor.

Fuel-Input = 

### The amount of heat input, in Btu, from the renewable energy. (4) The departmentshall review, reserve, and allocate CAIR NO allowances pursuant to, each allowance

. x 

### allocation request byJuly 31 each yearas follows:

(A) Upon receipt ofthe NO allowance allocation request, the departmentshall make any necessary adjustments to the request'\o ensure that the numberofaltowances specified in the request is consistent with the requirements ofsubdivision (3). (B) Ifthe energy efficiency and renewable energy allocation set-aside forthe control period forwhich NO allowances are requested has an amount of NO allowances greaterthan orequal to the number requesfed,

as adjusted underclause (A), the department sh'all reserve the amount ofthe NO allowances requested, as adjusted underclause (A), to the energy efficiencyand renewable energy project€. (C) Ifthe energy efficiencyand renewable energy allocation set-aside forthe control period forWl1ich NO, allowances are requested has an amount of NO allowances lessthan the number requested, as adjusted underclause (A), but the new unit set-aside is u:lder-subscribed, the departmentshall reserve the amount ofthe NO allowances requested with the difference reserved from the new unit set-aside. (D) Ifthe

### ~nergy efficiencyand renewable energyallocation set-aside forthe control period forwhich NO allowances are requested has an amount of NO allowances less than the number requested, as adjusted underclause (A), and the new unit set-aside is d'ver-subscribed, the department shall reserve the allocation set-aside on a pro rata basis, except that allowances requested for projects under section**2(38)(,~), ~(G),**  

### 2(38)(0), 2(39)(A), 2(39)(C), 2(39)(D), and 2(38)(1') 2(39)(H) ofthis rule shall be reserved first, reserved for projects under section**~\B)** 

### 2(39)(6) and**~fGJ** 

### 2(39)(G) ofthis rule second, reserved for projects undersection**~(E-)** 

### 2(39)(E) ofthis rule third, and reserved for projects undersection 2(38)(F) 2(39)(F) oftllis rule fourth. (E) Any unreserved allowances shall be distributed as follows:

(i) Fifty percent (50%) ofthe unreserved allowances shall be retained by the state to fund agrant program for energy efficiencyand renewable energy projects. The grant program projects do not need to meet the

one (1) ton of NO emissions for singular oraggregated projects under subdivision (2) The unreserved NOx allowances s11al1 be deposited in a general allowance account established in accordance with this rule by the Indiana office of energyand defense development in accordance with the allowance allocation requirements ofthis rUle, subject to the following:

(AA) The Indiana office ofenergyand defense developmentshall deposit revenue fl'Ol11 the sale of unreserved NO allowances in a dedicated general NO account established bylfles8-ftllesthis rule used exclusivelyto p;ovide matching grant funds for energy

### ~fficiency and renewable energy projects, includinn, but not limited to, the purchase and installation of alternative energy systems and programs to support energy efficiency projects. (BB) The Indiana office of energy and defense development shall hold the unreserved NO allowances in

a general NO, account until such time that project(s) are approved forgrant funding, atwhlcl, time NO, Where:

Where:

Dale" May 29,2008 fl:03:53AM EDT DIN:**200805?8"lr~-326080005PI~A** Page 11

### Indiana Register
allowances shall be sold to provide cash dollars forthe grant funding. (CC) Revenue from the sale ofunreserved NO allowances held bythe state of Indianathrough the Indianaoffice ofenergy and defense developm'entshall not revert to the state general fund, and shall only be used to provide matching grantfunds forthe installation of energy efficiency and renewable energy projects as defined in this subsection. (DO) Effective November 1,2009, and annuallythereafter, the Indiana office ofenergy and defense developmenl shall provide a report to the commissionerand the air pollution control board regarding the allowance transaction activityand the distribution and the balance ofthe matching grantfunds for energy efficiency and renewable energy projects during that period. At a minimum, tile report sllall contain the following:

(aa) The number of NO allowances currently held in general NO account(s) bythe Indiana office of x , 

### energy and defense development. (bb) A summary oftransactions in the market, including the date(s) oftransactions, the numberof allowances transacted, and the distribution of proceeds from transactions (including brokerage fees). (cc) The distribution ofgrantfunding by recipient. (dd) Afull description oftype of project(s) funded. (ee) Asummary ofthe benefits ofeach project. (EE) tfat any time after November 1,2009, the total numberof unreserved annual NO allowances held bythe Indiana office ofenergyand defense development is greaterthan five hundred (500) tons, fifty percent (50%) ofthe total amount of NO allowances shall be returned to the departmentfor redistribution to existing CAIR NO units on a pro ratabasis. (ii) Fifty percent (50%) ofthe unreserved allowances shall be allocated to CAIR NO units on a pro rata basis. x 

### (5) Afterthe completion oftile control period for which CAIR NO allowances had been reserved, the project sponsorshall submitthe results ofthe actual savings orgenerat[on byJanuary31 the following year. Allowances shall be awarded only afterverification ofproject implementation and certification ofenergy, emission, orelectricity savings, as appropriate. The department shall consult the Indiana office of energy and defense development concerning verification and certification. (6) The department shall allocate the appropriate amount ofCAIR NO allowances based on the review ofthe submittal ofactual savings orgeneration results undersubdivision (5)'and notifythe CAIR NO designated representative that submitted the request and the U.S. EPAofthe numberof NO allowances],lIocated for the control period by March 31 of each year. Any person to whom tile departmentall6cates NO allowances shall establish a general account undersection 9(b) ofthis rule. x

'These documents are incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitol Street NW, Washington, D.C. 20401 orare available for review and copying atthe Indiana Department of Environmental Management, Office ofAir Quality, Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204. (AirPollulion ControlBoard;

### ,32Q.JAQ.£4:.L:!l; filedJan 

### 26, 2007, 10:25 a.m.:

### 20070221-IR-326050117fRlJj

SECTION 4.

### .32.!lJ6i:.

..2.4.:1-9 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-1-.9 CAIR NO, allowance tracking system Authority: IC..13-1.4-8; IC 13-17:.:2:4.; lL13-17-3-1.1 Affected:**IC.1.l:1~;** 

### !L13.:.1I

Sec. 9. (a) Except as provided in section 12(f)(7) ofthis rule, upon receipt ofacomplete certificate of representation undersection 6(h) 01 

### this rule, the U.S EPAwill establish a compliance account forthe CAlF, NO

source for which the certificate of representation was submitted unless the source already has a compliance x account.

(b) Any person may apply to open ageneral account forthe purpose of holding and transferring CAIR NO allowances. An application lora general account may designate one (1) and only one (1) CAIR authorized ' account representative and one (1) and only one (1) alternate CAIR authorized account representative who may act on behalf ofthe CAlf, authorizecl account representative. The agreement by which tile alternate CAfR authorized account representative is selected shall include a procedure for authorizing the alternate CAIR authorized account**representf~live** 

### to'act in lieu ofthe CAIR authorized account representative. The establishment

Dale: May 29,2008 a:0353AM ElY! DIN:**20080528-11~-32G080005PHA** Paw: 1BIndiana Regisler
ofthe general account shall be subjecl to the following: (1) A complete application for a general account shall be submitted to the U.S. EPA and shall include the following elements in a format prescribed bythe U.S. EPA: (A) The following information concerning the CAIR authorized account representative and any alternate CAIR authorized account representative:

(i) Name. (ii) Mailing address. (iii) E-mail address. ifany. (iv) Telephone number. (v) Facsimile transmission number, ifany, (6) Organization name and type of organization, ifapplicable. (C) A list ofall persons subject to a binding agreement for the CAIR authorized account representative and any alternate CAIR authorized account representative to represent their ownership interestwith respect to the CAIR NO allowances held in the general account. (D) The

### follo~ing certification statement bythe CAIR authorized account representative and any alternate CAIR authorized account representative: "1 certify that Iwas selected as the CAIR authorized account representative orthe alternate CAIR authorized account representative, as applicable, by an agreement that is binding on all persons who have an ownership interest with respect to CAIR NO allowances held in the general account. I certifythat I have all the necessary authority to carry out my dutfes and responsibilities underthe CAIR NO annual trading program on behalfofsuch persons and that each such person shall be fully bound by my n{presentations, actions, inactions, orsubmissions and by any order ordecision issued to 'me by the U.S. EPA or acourt regarding the general account.". (E) The signature ofthe CAIR authorized account representative and any alternate CAIR authorized account representative and the dates signed. (F) Unless otherwise required bythe department orthe U.S. EPA, documents ofagreement referred to in the application fora general account shall not be submitted to the department orthe U.S. EPA. Neitherthe department northe U.S. EPA shall be underany obligation to reviewal' evaluate the sufficiency ofsuch documents, ifsubmitted. (2) Upon receipt bythe U.S. EPA ofa complete application for ageneral account undersubdivision (1), the following shall apply: (A) The U.S. EPAwill establish ageneral account for the person or persons for wll0m the application is submitted. (6) The CAIR authorized account representative and any alternate CAIR authorized account representative for the general account shaH represent and, by his or her representations, actions, inactions, or submissions, legally bind each person who has an ownership interestwith respect to CAIR NO allowances held in the general account in all malters pertaining to the CAIR NO annual trading program, ' notwithstanding any agreement between the CAIR authorized 

### accodnt representative orany alternate CAIR authorized account representative and such person. Any such person shall be bound by any orderor decision issued to the CAIR authorized account representative or any alternate CAIR authorized account representative by the U.S. EPA or acourt regarding the general account. (C) Any representation, action, inaction, orsubmission by any alternate CAIR authorized account representative 811811 be deemed to be a representation, action, inaction, or submission by the CAIR authorized account representative. (D) Each submission concerning the general account shall be submitted, signed, and certified bythe CAIR authorized account representative or any alternate CAIR authorized account representative for the persons having an ownership interestwith respect to CAIR NO allowances held in the general account. Each such submission shall include the following certification

### stat~ment by the CAIR authorized account representative

or any altemate CAIR authorized account representative: "I am authorized to make this submission on behalfofthe persons having an ownership interestwith respect to the CAIR NO allowances held in the general account. Icertify under penalty of lawthat lilave personally examined, and am familiarwith, the statements and information submitted in this document and all its attachments. Based on my inquiry of tllose individuals with primary responsibility forobtaining the information, I certify that the statements and information are to the best of my knowledge and belieftrue, accurate, and complete. I mn aware that there

are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility offine or imprisonment.". (E) The U.S. EPAwill accept or act on a submission concerning the general account only if Ole submission has been made, signed, and certilied in accordance with clause (D). (3) The following shall applyto changing the CAIR authorized account representative oralternate CAIR authorized account representative, and changes in persons with ownership interest: (A) The CAIR authorized account representative for a general account may be changed at any time upon receipt bytile U.S. EPA of a superseding complete applicalion for a general account uneJer subdivision (1).

Dale May29.2008 8:()3SlAM LOT Page 19Indiana Register Notwithstanding any such change, all representations, actions, inactions, and submissions bythe previous CAIR authorized account representative before the time and date when the U.S. EPA receives the superseding application for ageneral account shall be binding on the new CAIR authorized account representative and the persons with an ownership interestwith respect to the CAIR NO allowances in the


# , general account. (B) The alternate CAIR authorized account representative fora general account may be changed at any time upon receipt bythe U.S. EPA ofa superseding complete application for a general account under subdivision (1). Notwitllstanding any such change, all representations, actions, inactions, and submissions by the previous alternate CAIR authorized account representative before the time and date when the U.S. EPA receives the superseding application for a general account shall be binding on the new alternate CAIR authorized account representative and the persons with an ownership interestwith respect to the CAIR NO

. 

# . allowances In the general account. (C) In the event a person having an ownership interestwith respect to CAIR NO allowances in the general account is not included in the list ofsuch persons in the application for agenerafaccount, such person shall be deemed to be subject to and bound bythe application for ageneral account, the representation, actions, inactions, and submissions ofthe CAIR authorized account representative and any alternate CAIR authorized account representative ofthe account, and the decisions and orders ofthe U.S. EPA or a court,

as ifthe person were included in such list. (0) Within thirty (30) days following any change in the persons having an ownership interestwith respect to CAIR NO allowances in the general account, including the addition ofa new person, the CAIR authorized account

### r~presentative or any alternate CAIR authorized account representative shall submit a revision to the application fora general account amending the list of persons having an ownership interestwith respect to the CAIR NO allowances in the general account to include the change. (4) Once a comple"te application for a general account undersubdivision (1) has been submitted and received, the U.S. EPAwill rely on the application unless and until asuperseding complete application fora general account undersubdivision (1) is received bythe U.S. EPA. (5) Except as provided in subdivision (3)(A) or (3)(B), no objection orothercommunication submitted to the U.S. EPA concerning the authorization, orany representation, action, inaction, or submission ofthe CAIR authorized account representative orany alternate CAIR authorized account representative for ageneral account shall affect any representation, action, inaction, or submission ofthe CAIR authorized account representative or any alternate CAIR authorized account representative orthe finality ofany decision or order by the U.S. EPA underthe CAIR NO annual trading program. (6) The U.S. EPAwill not adjudicate

### ~ny private legal dispute concerning the authorization or any representation, action, inaction, orsubmission ofthe CAIR authorized account representative orany alternative CAIR authorized account representative for a general account, including private legal disputes concerning the proceeds of CAIR NO allowance transfers. (7) The following shall applyto delega"tion bythe CAIR authorized account representative and alternate CAIR authorized account representative:

(A) A CAIR authorized account representative may delegate, to one (1) or more natural persons, his or her auttlority to make an electronic submission to the U.S. EPA provided for or required undersections 9 and 10 ofthis rule. (8) An alternate CAIR authorized account representative may delegate, to one (1) or more natural persons, his or her authority to make an electronic submission to the U.S. EPA provided for or required under sections g and 10ofthis rule. (C) In orderto delegate authority to make an electronic submission to the U.S. EPA in accordance with clause (A) or (8), the CAIR authorized account representative orthe alternate CAIR authorized account representative, as appropriate, must submit to the U.S. EPA a notice ofdelegation, in aformat prescribed I)ythe U.S EPA, that includes the following elements:

(i) The name, address,**e~mail** address, telephone number, and facsimile transmission number, if any, of the following:

(AA) The CAIR authorized account representative or alternate CAIR authorized account representative. (B8) Eacl) natural person, referred to as an "agent". (ii) For each such natural person, a list ofthe type or types ofelectronic submissions under clause (A) or (8) for which authority is delegated to him or her. (iii) The following certification statements by such CAIR aulllorized account representativo oraltornate CAIR authorized account representative:

(AA) "I agree that any electronic submission to the U.S. EPA that is by an agent identified in thiS notice of delegation and of atype listed for such agent in this notice of delegation and that is made when I am a CAIR authorized account representative oralternate CAIR authorized representative, as appmpriate. and before this notice ofdelegation is superseded 

## by another notice ofdelegation under**J2_Q_J'!~l::**

## __2+J_-_ g(b)(7)(D) shall be deemed to be an electronic submission by me.".

Dille May 28,2008 H'0353AM EDT DIN:**200805?8"lr~-32G080005pr~A** Page 20Indiana Register (BB) "Until this notice ofdelegation is superseded by another notice ofdelegation under326 lAC 24-1- 2(b)(7)(D), I agree to maintain an e-mail account and to notifythe U.S. EPA immediately ofany change in my e-mail address unless all delegation ofauthorily by me under326 lAC 24-1-9(b)(7) is terminated.". (D) A notice of delegation submitted underclause (C) shall be effective, with regard to the CAIR authorized account representative or alternate CAIR authorized account representative identified in such notice, upon receipt ofsuch notice bythe U.S. EPA and until receipt bythe U.S. EPA ofa superseding notice of delegation submitted by such CAIR authorized account representative oralternale CAIR authorized account representative, as appropriate. The superseding notice ofdelegation may replace any previously identified agent, add a new agent, or eliminate entirely any delegation of authority. (E) Any electronic submission covered bythe cel1ification in clause (C)(ili)(AA) and made in accordance with

a notice ofdelegation effective underclause (D) shall be deemed to be an electronic submission bythe CAIR authorized account representative or alternate CAIR authorized account representative submitting such notice ofdelegation.

(c) The U.S. EPAwill assign a unique identifying numberto each account established undersubsection (a) or (b)

(d) Following the establishment of a CAIR NO allowance tracking system account, all submissions to the U.S. EPA pertaining to the account, including, but not r,mited to, submissions concerning the deduction ortransfer of CAIR NO allowances in the account, shall be made only bythe CAIR authorized account representative forthe account. x

(e) By September30, 2007, the U.S. EPAwill record in the CAIR NO source's compliance account the CAIR NO allowances allocated forthe CAIR NO units at the source, as sUbmltted by the department in accordance witli'section 8(b)(1) ofthis rule, for the contlol periods in 2009, 2010,2011,2012,2013, and 2014.

(f) By December 1,2008, and every six (6) years thereafter, the U.S. EPAwill record in the CAIR NO source's compliance account the CAIR NO allowances allocated for the CAIR NO units at the source, as submitled by the department in accordance witii' section 8(b)(2) ofthis rule, for the cont701 periods seven (7), eight (8), nine (9), ten (10), eleven (11), and twelve (12) years afterthe allowance allocation.

(g) By December 1,2009, and December 1 ofeach yearthereafter, the U.S. EPAwill record in the CAIR NO source's compliance account the CAIR NO allowances allocated for the CAIR NO units at the source, as ' submitted bythe department in accordanc,:'with section 8(b)(3) ofthis rule, for Ihe'control period in the year ofthe applicable deadline for recordation underthis subsection.

(h) When recording the allocation ofCAIR NO allowances for a CAIR NO unit in a compliance account, the U.S. EPAwill assign each CAIR NO allowance a'unique identification numberthat includes digits identifying the year ofthe control period for which tf,O CAIR NO allowance is allocated.


# ,
(i) The CAIR NO allowances are available to be deducted for compliance witll a source's CAIR NO emissions limitation

# tor acontrol period in 8 given calendaryear only 

### ifthe CAIR NO allowances: x (1) were allocated for the control period in the year or a prioryear; and ' (2) are held in the compliance account as ofthe allowance transfer deadline for the control period orare transferred into the compliance account by a CAIR NO allowance tl"ansfer correctly submitted for recordation undersection 10(a) througll10(d) by the allowance traAsrer deadline for the control period. '.

(j) The following shall apply to deductions for purposes ofcompliance with a source's emissions limitation: (1) Fotlowing Ihe recordation, in accordance witll section 1O(b) through 10(d) oftilis rule, ofCAIR NO allowance transfers submitted for recordation in asource's compliance account 

### by the allowance tran1fer deadline for acontrol period, the U.S. EPAwill deduct from 

### tile compliance account CAIR NO allowances available undersubsection (i) in orderto determine whetherthe source meets the CAIR NO emissions 

# , lirnitation for the control period: a-s---fe+Iew-s-:.

(A) until tile amount of CAIR NO allowances deducted equals the numberoftons oftotal nitrogen oxides ernissions. determined in

### accord~mce with section 11 ofthis rule. fl"orn all CAIR NO units at the source for

. 

# .. the control period; or (8) ifthere are insufficient CAIR NO allowances to complete the deductions in clause (A), until no more 

# ,

Dkl1C May**;?~),200i3** B0353Afvl UYJ DIN:**20080528"lr~~J26080005PHA** Page 21Indiana Register
CAIR NO allowances available undersubsection (i) remain in the compliance account. (2) The CAIR authorized account representative for a source's compliance account may requestthat specific CAIR NO allowances, identified by serial number, in the compliance account be deducted for emissions or
excess er:\issions fora control period in accordance with subdivision (1) or (4). 

## et-f&r Such request shall be submitted to the U.S. EPA bythe allowance transferdeadline for the control period and include, in a format prescribed bythe U.S. EPA, the identification ofthe CAIR NO source and the appropriate serial numbers. (3) The U.S EPAwill deduct CAIR NO allowances undersut5division (1) or (4) ef-\&) from Ihe source's compliance account, in the absence of'an identification or in the case ofa partial identification ofCAIR NO allowances by serial number under subdivision (2), on afirst-in, firsl-out (FIFO) accounting basis in the ' following order: (A) Any CAIR NO allowances thatwere allocated 10 the units at the source, in the orderof recordation. 

# .

. . (B) Any CAIR NO allowances thatwere allocated 10 any entlly and transferred and recorded In the compliance accouXnt undersection 10 ofthis rule, in the order of recordation. (4) After making the deductions forcompliance undersubdivision (1) for a control period in acalendaryear in which the CAIR NO source has excess emissions, the U.S. EPAwill deductfrom the source's compliance account an amount'OfCAIR NO allowances, allocaled for the control period in the immediately following calendaryear, equal to three (3)times the numberoftons ofthe source's excess emissions. (5) Any allowance deduction required undersubdivision (4) shall nol affectthe liability ofthe owners and operators ofthe CAIR NO source or Ihe CAIR NO units at the source for any fine, penalty, or assessment, or their obligation 10comply 0ith any other remedy, fo"r the same violalions, as ordered underthe Clean AirAct or applicable state law. (6) The U.S. EPAwill record in the appropriate compliance account all deductions from such an account under 5ueffivisiBR subdivisions (1), (4), and (5) and section 12 atthis rule. (7) The U.S. EPA may review and conduct independent audits concerning any submission under the CAIR NOx annual trading program and make appropriate adjustments ofthe information in the submissions. (8) The U.S. EPA may deduct CAIR NO allowances from ortransfer CAIR NO allowances to a source's compliance account based on the inforriiation in the submissions, as adjusted Gnder subdivision (7), and record such deductions and transfers.

(k) CAIR NO allowances may be banked for future use ortransfer in acompliance account or ageneral account. Any

### C~IR NO allowance that is held in a compliance account ora general account shall remain in such account unless and untn the CAIR NO allowance is deducted ortransferred undersubsection (i), (j), or (I) or section 

### 10 or 

### 12 ofthis rule. x

(I) The U.S. EPA may at ils sale discretion and on its own motion, correcl any error in any CAIR NO allowance tracking system account. Within ten (10) business days of making such correction, the U.S.

### ~PA will notify the CAIR authorized account representative for the account.

(m) The CAIR aulhorized account representative of ageneral account maysubmil to the U.S. EPA a request to close the account, which shall include a correctly submitted allowance transfer undersection 10(a) through 10(d) ofthiS rule for any CAIR NO allowances in the account to one (1) or more other CAli, NO allowance 

# .. . traCking system accounts.

(n) Ifa general account has no allowance transfers in or out ofthe account for a twelve (12) month period or longer and does not contain any CAIR NO allowances, the U.S. EPA may nolifythe CAIR aulhorized account representative for the account that the 

### acc6unt shall be closed following twenty (20) business days afterthe notice is sent. The account shall be closed afterthe twenly (20) day period unless, before the end ofthe twenty (20) day period, the U.S. EPA receives acorrectly submitted transfer of CAIR NO allowances into the account undersection 1O(a) t1110ugh 1O(d) ofthis rule or a slatemeni submitted by Ihe CArR authorized account .•.. representative denlOllstrating to the satisfaction ofthe U.S. EPA good cause as to why the account should not be closed. (AirPollution ControlBoard.

## 32i21A<22.1:L.9., filedJan 26,2007, 10.25 anL

## 2QQ702.2.L.1B.:3.2.60!:50LUfBA!

SECTION 5. 326 IAG.2'!:.1:.1.2. IS AMENDED TO PEAD AS FOLLOWS**~26IA(;,24-1-12** CAIR NO, opt-in units Authority:**19J~:H.:.Ii; !.C.JJ:J7:3:4;IL1J:JZ:~:J1** 

Dale: May2n,200H H:03S3AM EDT DIN:**20080528-11~·326080005Pf~A**Indiana Register
Affected: IC 13·15; IC 13-17

Sec. 12. (a) A CAIR NO opt-in unit is a unitthat meets all ofthe following requirements: (1) Is located in Indiana.' (2) Is not a CAIR NO unit undersection 1 ofthis rule and is not covered by a retired unit exemption thai is in effeci undersection

# :3of Ihis rule. (3) Is nol covered by a relired unit exemption that is in effecl under40 CFR 72.8'. (4) Has or is required orqualified to have a Pari 70 operating permil orotherfederally enforceable permit. (5) Vents all ofits NO emissions to a stack and can meet the monitoring, record keeping, and reporting requirements of secti6n 11 ofthis rule.

(b) Except as otherwise provided in sections 1,2,4 through 7, and 9tllrough 11 ofthis rute, a CAIR NO opt-in unit shall be treated as a CAIR NO unitfor purposes ofapplying such sections ofthis rule. x x
(c) Solely for purposes of applying, as provided in this section, the requirements ofsection 11 ofthis rule to a unitfor Wl1ich a CAIR opt-in permit application is submitled and notwithdrawn and a CAIR opt-in permit is notyet issued ordenied underthis section, such unit shall be treated as a CAtR NO unit before issuance of a CAIR opt-in permitfor such unit. x

(d) Any CAIR NO opt-in unit, and any unitforwhich a CAIR opt-in permit application is submitled and not withdrawn and a

## CAI~ opt-in permit is not yet issued ordenied underthis section, located atthe same source as
one (1) or more CAIR NO units shall have tl1e same CAIR designated representalive and alternate CAIR designated representalive'as such CAIR NO units.
x
(e) The CAIR designated representative ofa unit meeting the requirements for a CAIR NO opt-in unit in subsection (a) may applyfor an initial CAIR opt-in permit at anytime, except as provided und€rsubsection (h)(S) and (h)(9), and, in orderto apply, must submittl1e following: (1) A complete CAIR permit application undersection 7(c) ofthis rule. (2) A certification, in a format specified bythe department, that the unit:

(A) is not aCAIR NO unit undersection 1 ofthis rule and is not covered by a retired unit exemption that is in effect under

### sectio~ 3ofthis rule; (B) is not covered by a retired unit exemption that is in effect under40 CFR 72.S'; (C) vents all of its NO emissions to astack; and (D) has documented

### ~eat inputfor more than eight hundred seventy-six (S76) hours during the six (6) months immediately preceding submission ofthe CAIR permit application under section 7(c) ofthis rule. (3) A monitoring plan in accordance with section 11 ofthis rule. (4) A complete certificate of representation undersection 6(h) ofthis rule consislent with subsection (d), if no CAIR designated representative has been previously designated forthe source that includes Ihe unit. (5) A statement, in a format specified bythe department, whether the CAIR designaled representative requests Ihat the unit be allocated CAIR NO allowances undersubsection (j)(3) or (j)(4), subjectto the conditions in subsections (f)(10) and (h)(8). allocation undersubsection (j)(4) is requested, this statement shall include a slatementthat the owners and operators ofthe unit intend to repowerthe unit before January 1, 2015, and that they will provide, upon request, documentation demonstrating such intent. The CAIR designaled representative of a CAIR NO opt-in unit shall submit acomplele CAIR permit application under seclion 7(c) of Ihis rule to renew the CAIR op1-in unit permit in accordance with 327 lAC 2-7 or 327 lAC 2-S, if applicable, addressing permit renewal. Unless the department issues a notification ofacceptance ofwithdrawal of the CAIR opt-in unit from the CAIR NO annual trading program in accordance will1 subseclion (11) orthe unil becomes a CAIR NO unit under section \ of Ihis rule, Ihe CAIR NO opt-in unit shall remain subjecl to the requirements for a CAIR NO opt-in unit, even ifthe CAIR

### designate~ representative forthe CAIR NO opt-in unit fails 10 submit a CAIR pennit'applicatian that is required 

### for renewal ofthe CAIR NO opt-in permit. '


# ,
(f) The department shall issue or deny aCAIR opt-in permit for a unit for which an initial application for aCAIR opt-in permit undersubsection (e) is submilled in accordance wilhlhe following: (1) The department and Ihe U.S. EPAwill determine, on an interim basis, the sufficiency ofthe monitoring plan accompanying the initial application for aCAIR opt-in perrnil under subsection (0). A l1lonitming plan is sufficient, for purposes of interi!l) review, 

### jfthe plan appears to contain information demonstrating that the NO ernissions rate and heat input ofthe unit and all otherapplicable pararfleters are monitored and reported in x

Dak)' May 29,2008 8:0353AM Em DIN:**20080S28-lr~-32G080005PHA** P39023Indiana Register
accordance with section 11 ofthis rule. A determination ofsufficiency shall not be construed as acceptance or approval ofthe monitoring plan. (2) Ifthe department and the U.S. EPA determine that the monitoring plan is sufficient undersubdivision (1), the owneroroperatorshall monitorand report the NO emissions rate and the heat input ofthe unit and all otherapplicable parameters, in accordance with sectiO'n 11 ofthis rule, starting on the date ofcertification of the appropriate monitoring systems undersection 11 ofthis rule and continuing until a CAIR opt-in permit is denied undersubdivision (8) or. ifa CAIR opt-in permit is issued, the date and time when the unit is withdrawn from the CAIR NO, annual trading program in accordance with subsection (h). (3) The monitoring and reporting under subdivision (2) shall include the entire control period immediately before the date on which the unit enters the CAIR NO annual trading program undersubdivision (g), during which period monitoring system availability must not b'e less than ninety percent (90%) undersection 11 ofthis rule and the unit must be in full compliance with any applicable state Orfederal emissions oremissions-related requirements. (4) To the extent the NO emissions rate and tile heat input ofthe unit are monitored and reported in accordance with section'11 ofthis rule forone (1) or more control periods, in addition to the control period under subdivision (3), during which control periods monitoring system availability is not less than ninety percent (90%) undersection 11 ofthis rule and the unit is in full compliance with any applicable state or federal emissions oremissions-related requirements and which control periods begin not more than three (3) years before the unit enters the CAIR NO annual trading program undersubdivision (9), such information shall be used as provided in subdivisions

### (5) and (6). (5) The unit's baseline heat input shall equal one (1) ofthe following:

(A) Ifthe unit's NO emissions rate and heat input are monitored and reported for only one control period, in accordance with sObdivisions (2) and (3), the unit's total heat input, in million British thermal units (MMBtu), forthe control period. (B) Ifthe unit's NO emissions rate and heat input are monitored and reported for more than one control period, in accorda,;'ce witll subdivisions (2) through (4), the average ofthe amounts ofthe unit's total heat input, in million British thermal units (MMBtu), forthe control periods undersubdivisions (3) and (4). (6) The unit's baseline NO emission rate shall equal one (1) ofthe following:

(A) Ifthe unit's NO emi,bons rate and heat input are monitored and reported foronly one control period, in accordance with stlbdivisions (2) and (3), the unit's NO emissions rate, in pounds per million British thermal units (lb/MMBtu), forthe control period. ' (B) Ifthe unit's NO emissions rate and heat input are monitored and reported for more than one control period, in accorda,;'ce witil subdivisions (2) through (4), and the unit does not have add-on NO emission controls during any such control periods, the average ofthe amounts ofthe unit's NO

### emissio~s rate in pounds per million Britisll thermal units (lb/MMBtu), forthe control periods underSUbdivisions (3) and (4). (C) Ifthe unit's NO emissions rate and heat input are monitored and reported for more than one control period, in accord8l{ce with subdivisions (2) through (4), and the unit has add-on NO emission controls during any such control periods, the average ofthe amounts ofthe unit's NO 

### emisslons rate in pounds per million British thermal units (lb/MMBtu), for such control periods during which'the unit has add-on NO emission controls. x (7) After calculating the baseline heat input and the baseline NO emissions rate forthe unit under subdivisions (5) and (6) and iftile department determines that

### th~ CAIR designated representative shows that the unit meets the requirements for aCAIR NO opt-in unit in subsection (a) and meets the elements certified in subsection (e)(2), the department shall issue'a CAIR opt-in permit. The department shall provide acopy of the CAIR opt-in permitto the U.S. EPA, who will then establish acompliance account forthe source that includes tile CAIR NO opt-in unit unless the source already has a compliance account. (8) Notwithstanding sul'divisions (1) through (7), if at any time before issuance of a CAIR opt-in permit for the unit, 018 department determines that the CAlF. designated representative fails to showthat the uilit meets the requirements for a CAIR NO opt-in unit in subsection (a) or meets the elements certified in subsection (e)(2), the department shall issue a'denial of a CAlF, opt-in permitforthe unit. (g) A unit forwhich an initial CAIR opt-in permit is issued by the department shall become a CAIR NO opt-in unit, and a CAIR NO unit, as ofthe laterofJanuary 1,2009, orJanuary 1 oftile first control period dOring which such CAIR apr-in permit is issued. (10) Ifa CAIR designated representative requests, and tile department issues, a CAIR opt-in permit providing for: allocation to a CAlf:;Z NO opt-in unit of CAlF< NO

x allowances undersubsection (j)(4) and such unit is repowered after its date ofeiltry into tile CAIR NO annual trading program undersubdivision (9), the repowered unit shall be treated as aCAIR NO opt-in unit replacing tile original CAIR NO opt-in unit, as ofthe date ofstart-up ofthe repowered unit's

### combu~tion cllamber. Notwithstanding SUbdivision's (5) and (6), as of the date ofstart-up, the repowered unit shall be deemed to have the same date of commencement of operation, date ofcornmencemenl of commercial operation, baseline heat input, and baseline NO emission rate as the original CAIR NOxopt-in unit, and the original

### CAIr-~ NOxopt-in unit shall no longer be Created clS a

Dale: May29,2008 8:0J531\M Em DIN:**20080528"1!~-32G080005PRA** Page 24Indiana Register CAIR NO opt-in unit oraCAIR NO unit.

, x
(g) The following shall apply to the content of each CAIR opt-in permit. (1) Each opt-in permit shall contain:

(A) All elements required for a complete CAIR permit application undersection 7(c) ofthis rule. (B) The certification in subsection (e)(2). (C) The unit's baseline heat input under subsection 

### (I)(Ci). (0) The unit's baseline NO emission rate undersubsection (f)(6). (E) A statement whetherth'e unit is to be allocated CAIR NO allowances under subsection U)(3) or U)(4), subjectto the conditions in subsections (f)(10) and (h). x (F) A statementthat the unit maywithdraw from the CAIR NO annual trading program only in accordance with subsection (h). ' (G) A statementthat the unit is subjectto, and the owners and operators ofthe unit must comply with, the requirements ofsubsection (i). (2) Each CAIR opt-in permit is deemed to incorporate automatically the definitions undersection 2ofthis rule and, upon recordation bythe U.S. EPA underthis section and sections 9 and 10 ofthis rule, everyallocation, transfer, ordeduction ofCAIR NO allowances to orfrom the compliance account ofthe SOurce that includes a CAIR NO opt-in unit covered by tAe CAIR opt-in permit. (3) The CAIR opt-in permit shall be included, in aformat prescribed bythe department. in the CAIR permit for the source where the CAIR opt-in unit is located and in a Part 70 operating permit or FESOP.

(h) The following requirements must be satisfied in order to withdraw an opt-in unit from the CAIR NO annual trading program: ' (1) Except as provided undersubdivision (8), a CAIR NO opt-in unit maywithdraw from the CAIR NO annual trading program, but only ifthe department issues anotifreation to the CAIR designated representative'of the CAIR NO opt-in unit ofthe acceptance ofthe withdrawal ofthe CAIR NO opt-in unit in accordance with subdivisia''" (6). ' (2) In orderto withdraw a CAIR NO opt-in unitfrom the CAIR NO annual trading program, the CAIR designated representative ofthe CAIR NO opt-in unit shall submil to the department a request to withdraw effective as of midnight of December31 ofa specified calendaryear, which date must be at least four (4) years after December31 ofthe year ofentry into the CAIR NO annual trading program undersubsection (f)(9). The request must be submitted not later than ninety (90)'days before the requested effective date of withdrawal. (3) Before a CAIR NO opt-in unit covered by a request under subdivision (1) maywithdraw from the CAIR '

...... NO, annual trading pr6gram and the CAIR opt-in permit may be terminated undersubdivision (7), the following conditions must be met:

(A) Forthe control period ending on the date on which the withdrawal is to be effective, the source that includes the CAIR NO opt-in unit must meetthe requirement to hold CAIR NO allowances undersection 4(c) ofthis rule and 

### cal1not have any excess emissions. x (8) Afterthe requirement forwithdrawal underclause (A) is met, the U.S. EPAwill deduct from the compliance account ofthe source tl1at includes the CAIR NO opt-in unit CAIR NO allowances equal in amountto, and allocated for, the same or a priorcontrol peri6d as any CAIR NO a110wances allocated to the CAIR NO opt-in unit undersubsection (j) for any control period for which the'withdrawal is to be effeclive. Ifth'ere are no remaining CAIR NO units at Ihe source, the U.S. EPAwill close tl1e compliance account, and the owners and operators of

### th~ CAIR NO opt-in unit may submit a CAIR NO allowance transfer for any remaining CAIR NO allowances to anoiher CAIR NO allowance tracking system in accordance with section 10 ofthis rJle. x (4) Afterthe requirements for withdrawal undersubdivisions (2) and (3) are met, including deduclion ofthe full amountof CAIR NO allowances required, the department511all issue a notification to the CAIR designated 

# , representative ofthe CAIR NO opt-in unit oftl1e acceptance oftl1e withdrawal ofthe CAIR NO opt-in unit as of midnight on December31 

### orthe calendaryearfor which the withdrawal was requested. x 

### (Ci) Ifthe requirements forwitlldrawal undersubdivisions (2) and (3) are not met, tl1e department sllall issue a notification to the CAIR designated representative ofthe CAIR NO. opt-in unitthat the CAIR NO opt-in unit's request to witl1draw is denied. Such CAIR NO opt-in unil sl1all con\lnue to be a CAIR NO opt

..in unit. (6) Afterthe department issues a notification u'ndersubdivision (4) Ihat the requirements for witl1drawal have been met, tho department sl1all revise tl1e CAIR permit covering the CAIR NO opt-in unitto terminate tile CAIR opt-in permit for sucl1 unit as oftile effective date specified undersUbdiv1sion (4). The unit sl1all continue to be a CAIR NO opt-in unit until tl1e effective date oftl1e tmmination and sl1all comply witl1 all requllements unclerthe CAIR NO annual trading program concerning any control periods forWllich the unit is a CAIR NO. opt-in unit, even 

### ifs[lch requirements arise or must be complied willl afterthe withdrawal takes effect. x

Oale: rlila)'**2~J,2008** 8:0353AM EDT DIN:**2008052B·IF<-32GOeOOO~)PI:';A**Indiana Register (7) Ifthe department denies the CAIR NO opt-in unit's request to withdraw, the CAIR designated representative maysubmit another requeit to withdraw in accordance with subdivisions (2) and (3). (8) Notwithstanding subdivisions (1) through (7), aCAIR NO opt-in unit shall not be eligible to withdraw from the CAIR NO annual trading program ifthe CAIR designate21 representative ofthe CAIR NO opt-in unit requests, and'the department issues, a CAIR NO opt-in permit providing for, allocation to th€CAIR NO opt-in unit ofCAIR NO allowances undersubsection 

## UJ14). ' (9) Once a CAIR'NO opt-in unitwithdraws from the CAtR NO annual trading program and its CAIR opt-in permit is terminated Onderthis section, the CAIR designated

### r~presentative may not submit another application for aCAIR opt-in permit undersubsection (e) for such CAIR NO opt-in unit before the date that IS four (4) years afterthe date on which the withdrawal became effective.

### Suc~ new application for a CAIR opt-in permit shall be treated as an initial application for aCAIR opt-in permit undersubsection (f).

(i) When aCAIR NO opt-in unit becomes a CAIR NO unit undersection 1 ofthis rule, then the CAIR designated representatiOe shall notify, in writing, the depirtment and the U.S. EPA ofsuch change in the CAIR NO opt-in unit's regulatory status, within thirty (30) days of such change. Ifthere is a change in the regulatory sta(us, the department and the U.S. EPAwill take tl1e following actions concerning the CAIR NO opt-in source: (1) When the CAIR NO opt-in unil becomes a CAIR NO unit under section 1 ofthis rule, the'department shall revise the CAIR NO opt-in unit's CAIR opt-in permit to

### ~eet the requirements ofa CAIR permit undersection 7(d) and (7)(e) ofth(s rule, and remove the CAIR opt-in permit provisions, as ofthe date on which the CAIR NO opt-in unit becomes a CAIR NO unit undersection 1 ofthis rule. (2) the U.S. EPAwill deductfrom tl1& compliance account ofthe source that includes the CAIR NO opt-in unit that becomes a CAIR NO unit undersection 1 ofthis rule, CAIR NO allowances equal in

### amountt~ and allocated for the same or

## 1 priorcontrol period as follows: '

(A) Any CAtR NO allowances allocated to the CAIR NO opt-in unit undersubsection 

## UJ forany control period afterthe dJte on which the CAIR NO opt-in unit 6ecomes a CAIR NO unit under section 1 ofthis rule. x x (B) Ifthe date on which the CAIR NO opt-in unit becomes a CAIR NO unit undersection 1 ofthis rule is not December 31, the CAIR NO allo«'ancesallocated to the CAIR No' opt-In unit under subsection 

## UJ for the control period that includes O,e date on which the CAIR NO opt-in 1mit becomes a CAIR NO unit under section 1 ofthis rule, multiplied by the ratio ofthe numberof days, in the control period, starting Jiith the date on which the CAIR NO opt-in unit becomes a CAIR NO unit undersection 1 ofthis rule divided bythe total numberofdays in the 20ntrol period and rounded to the'nearest whole allowance as appropriate. (3) The CAIR designated representative shall ensure that the compliance account ofthe source that includes the CAIR NO opt-in unit that becomes a CAIR NO unit undersection 1 ofthis rule contains the CAIR NO allowances n§cessaryforcompletion ofthe deductron undersubdivision (2). x (4) For every control period afterthe date on which the CAIR NO opt-in unit becomes a CAIR NO unit under section 1 ofthis rule, the CAIR NO opt-in unit shall be allocated CAIR NO allowance allocations Gnder section 8(c) ofthis rule.'

, (5) Notwithstandin9 subdivision (4), ifthe date on which the CAIR NO opt-in unit becomes a CAIR NO unit undersection 1 ofthis rule is not

### Jafr"""'f4, December 31, the followfng amount ofCAIR NO allowanEes shall be allocated to the CAIR NO opt-in unit, as aCAIR NO unit, under section 8(c) ofthis iLle for the control period that includes the dale on which the CAIR NO bpt-in unit becomes a CAIR NO unit under section 

### 1 ofthis rule: x x

(A) the amount of CAIR NO allowances otherwise allocated to the CAIR NO opt-in unit, as a CAIR NO unit, undersection 8(c) of

### th~s rule forthe control period;

, , (8) multiplied bythe ratio ofthe numberof days, in tl1e control period, starling with the date on which the CAIR NO opt-in unit becomes a CAIR NO unit unclel' section 1 ofthis rule, divided 

### by the total nUIl)!Jerof

. x. x days In the control perrod; and (C) rounded to the nearestwhole allowance, as appropriate.

(j) The department shall allocate CAIR NO allowances 10 CAIR NO opt-II1 sources as follows: (1) When Ihe CAIR opt-in permit is issued Gndersubsection (f)('1), Irfe department shall allocate CAIR NO allowances to the CAIR NO opt-in unit, and submilto the U.S. EPA the allocation for the conlrol period in' which a CAIR NO opt-in

### un~t enlers Ihe CAIR NO annuallrading program under subsection (f)(9), in accordance with s'ubdivision (3) or (4). ' (2) By not laterthan October31 ofthe control period in which a CAIR NO. opt-in unit enters the CAIR NO annual trading program undersubsection (1)(9) and October31 ofeach y&arthereafter, the department srfall allocate CAIR NO allowances 10the CAIR NO api-II' unit, and submilto the U.S. EPA Ihe allocation torthe control period lha(includes such submission deadline and in which the unit is a CAIR NO opt-in unit, in

. . , . x accordance With subdiVISion (3) or (4).

Date May 29,2008 8:0:l!j3Afv1 EDTIndiana Register (3) Foreach control period for which a CAIR NO opt-in unitis to be allocated CAIR NO allowances, the department shall allocate in accordance with the'following procedures: '

(A) The heat input, in million British thermal units (MMBtu), used for calculating the CAIR NO allowance allocation shall be the lesserofthe following: x

(i) The CAIR NO opt-in unit's baseline heat input determined undersubsection (f)(9). (ii) The CAIR Nd' opt-in unit's heat input, as determined in accordance with section 11 ofthis rUle, forthe immediately prio/control period, except when the allocation is being calculated forthe control period in which the CAIR NO opt-in unit enters the CAIR NO annual trading program undersubsection (t)(9). (B) The NO

### emissio~ rate, in million Bnlish thermal Jnits (MMBtu), used for calculaling CAIR NO allowance allocations sllall be the lesserofthe following: x

(i) The CAIR NO opt-in unit's baseline NO emissions rate, in pounds per million British thermal units (lb/MMBtu), dete1mined undersubsection 

### (1)(6) and multiplied by seventy percent (70%). (ii) The most stringent state orfederal NO emissions limitation applicable to the CAIR NO opt-in unit at anytime during the control period forwhich CAIR NO allowances are to be allocated. ' (C) The department shall allocate CAIR NO allowanc€sto the CAIR NO opt-in unit in an amount equaling the heat input underclause (A), multiplied by the NO emission rate und€rclause (B), divided by two thousand (2,000) pounds perton, and rounded to th€nearestwhole allowance as appropriate. (4) Notwithstanding subdivision (3), ifthe CAIR designated representative requests, and ifthe department issues a CAIR opt-in permit (based on a demonstration ofthe intentto repower stated undersubsection (e)(5)) providing for, allocation to a CAIR NO opt-in unit ofCAIR NO allowances underthis subdivision, subjectto the conditions in subseclions (f)(10) and (h), the departmeAt shall allocate to tile CAIR NO opt-in 

### unit as follows: x

(A) Foreach control period in 2009 through 2014 the CAIR NO opt-in unit is to be allocated CAIR NO

• x x allowances as follows:

(i) The heat input, In million British thermal units (MMBtu), used forcalculating CAIR NO allowance allocations shall be determined as described in subdivision (3)(A). x (ii) The NO emission rate, in pounds per million British thermal units (lb/MMBtu), used for calculating CAIR NO allowa),ce allocations shall be the lesser ofthe following:

(AA) The CAIR NO opt-in unit's baseline NO emissions rate, in pounds per million British thermal units (lb/MMBtu), determlned undersubsection (f)(6). (BB) The most stringent state orfederal NO emissions limitation applicable to the CAIR NO opt-in unit at anytime during the control period in which 

### the CAIR NO opt-in unit enters the CAIR NO an'nual trading program undersubsection (f)(9). '

, (iii) The departmenl shall allocale CAIR NO allowances to the CAIR NO opt-in unit in an amounl equal to the heat input under item (i), multiplied bytlfe NO emission rale under

### it~m (ii), divided bytwo thousand x

. (2,000) pounds perton, and rounded to tile nearestwhole allowance as approp,.,ate. (B) Foreach control period in 2015 and thereafterthe CAIR NO opt-in unit is to be allocated CAIR NO allowances as follows: x x

(i) The heat input, in million British thermal units (MMBlu), used for calculating the CAIR NO allowance allocations shall be determined as described in subdivision (3)(A). x (ii) Tile NO emission rate, in pounds per million British thermal units (lb/MMBtu), used for calculaling the CAIR NO §lIowance allocation sllall be the lesseroftile following:

(AA)

### Fift~en-Ilundredtlls (0.15) pounds per million British thermal units (lb/MMBtu). (BB) The CAIR NO opt-in unit's Ilaseline NO emissions rate, in pounds per million Britisll thermal units (lb/MMBtu), determlned undersubsection (f)(6). (CC) The most stringent state orfederal NO emissions limitation applicable to the CAIR NO opt-in unit at any time during the control period 

### fat" which CAIR NO allowances are to be allocated. x (iii) The department shall allocate CAIF< NO allowancexs to the CAIR NO opt-in unit in an arrlOunl equaling the heat inpul ilem (i), multiplied bythe NO 'emission rate under item (ii):divided Ily two thousand (2,000) pounds perton, and rounded to the nearestwhole allowance as appropriate. (5) The U.S EPAwill record, in the compliance account of Ihe source that includes Ihe CAIR NO opt-in unit, the CAIR NO allowances allocatecilly the department to the CAIR NO opt-in unit under subdivision (1). (6) By Decem'ber 1 ofthe control period in wllich a CAIR NO opt-in unn enters the CAIR NO annual trading program under subsection (f)(9) and December 1 ofeacll ye)',rthereafter, the U.S. EPAwill rikard, in the compliance account of the source thai**includ(~s** the CAIR NO opt-in unit the**CAIf~** NO allowances allocated by the department to the CAIR NO opt-in unit under sUildivis10n (2). x x *These documents are incorporated by reference. Copies may be obtained from the Governrnelll Printing Office, 732 North Capitol Street NW. Wasllinglon, D.C. 20401 or are available for review and**copyin~J** alll18 Indiana Department of Environmental**M(]l1a~Jernent,** Office ofAir Quality, Indiana Government Cenler--North, Tenth Floor, 100 North Senate Avenue. Indianapolis, Indiana 46204.

Dale: May29,2008 8:03S3AM E:D"! DIN·**200e0528·IF~·J2()080005pr~A** F'age 27

### Indiana Register


### (AirPollution ControlBoard; 326 

### lAC24-1-12; 

### filedJan 26,2007,10:25 

### a.m.: 20070221-IR-326050117FRA; errata filedJan 29, 2007, 2:43

### p.m

.. 20070221-IR-326050117 ACA)

SECTION 6. 326 lAC 24-2-2 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-2-2 Definitions Authority: IC 13-14-8; IC 13:17.:.1:.'1; j!:;.J3-17-3:t1 Affected: IC 13·11·2; IC 13·15; IC 13·17

Sec. 2. For purposes ofthis rule, the definition given for aterm in this rule shall control in any conflict between 326 lAC 1-2 and this rule. In addition to the definitions provided in IC 13-11-2 and 326 lAC 1-2, the following definitions applythroughout this rule, unless expressly stated otherwise Or unlessthe context clearly implies otherwise: (1) "Account number" means the identification numbergiven bythe U.S. EPAto each CAIR SO, allowance tracking system account. {2} "Acid rain emissions limitation" means a limitation on emissions ofsulfurdioxide or nitrogen oxides under the acid rain program. (3) "Acid rain program" means a multistate sulfurdioxide and nitrogen oxides air pollution control and emission reduction program established bythe U.S. EPA underTitle IVofthe Clean AirAct and 40 CFR 72 through 40 CFR 78'. (4) "Allocate" or "allocation" means, with regard to CAIR S02 allowances issued under the acid rain program, the determination bythe U.S. EPAofthe amount of such CAIR SO, allowances to be initiallycredited to a CAIR SO, unit orotherentityand, with regard to CAIR SO,allowances issued underprovisions ofa state implementation plan that are approved under40 CFR 51.1 L4(0)(1), 40 CFR 51.124(0)(2), or40 CFR 51.124(r)', or40 CFR 97', the determination by a permitting authority ofthe amount ofSO, allowances to be initiallycredited to a CAIR SO, unitorotherentity. ' (5) "Allowance transferdeadline" means, for a control period, midnight of March 1 (if it is a business day), or midnight ofthe first business daythereafler (If March 1 is not a business day), immediatelyfollowing the control period and is the deadline bywhich a CAIR SO, allowance transfer must be submitted for recordation in a CAIR SO, source's compliance account in orderto be used to meetthe source's CAIR SO, emissions limitation for such control period in accordance with section 80) and 8(k) ofthis rule. (6) "Alternate CAIR designated representative" means, for a CAIR SO source and each CAIR SO, unit atthe source, the natural person who is authorized by

### the owners and operaTors 

### ofthe source and all such units at the source in accordance with sections 6 and 11 ofthis rule, to act on behalfofthe CAIR designated representative in matters pertaining to the CAIR SO, trading program. Ifthe CAIR SO, source is also a CAIR NO source, then this natural person shall be the same person as the alternate CAIR designated repPesentative underthe CAIR NO annual trading program. Ifthe CAIR SO source is also a CAIR NO

ozone season source, then this nafural person shall be Ihe same person as1he alternate CAIR designated representative underthe CAIR NO ozone season trading program. Ifthe CAIR S02 source is also subject to the acid rain program, then this nafurai person shall be the same person as the alternate designated representative underthe acid rain program. Ifthe CAIR S02 source is also subject to the mercury budget trading program, then this natural person shall be the same'person as the alternate mercurydesignated representative underthe mercury budgettrading program. (7) "Automated data acquisition and handling system" or "DAHS" means that component ofthe continuous emission monitoring system, orotheremissions monitoring system approved for use undersection 10 ofthis rule, designed to interpret and convert individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and othercomponent parts ofthe 111onitoring 

### system to produce a continuous record ofthe measured parameters in the measurement units required by 

### section 10 ofthis rule, (8) "Biomass" means any ofthe following: (A) Organic material grown forthe purpose of being converted to energy. (B) Organic byproduct of agriculture that can be converted into energy, (C) Material that:

(i) can be converted into energy and is nonmerchantable for other purposes; (ii) is segregated from other nonmerchantable material; and (iii) is:

(AA) aforest·related organic residue, including mill residues, precommercial thinnings, slash, brush, or byproduct from conversion oftrees to merchantable material; or (88) 

### a wood material, including pallets, crates, dunnage, manufacturing and construction

Date May29,2008 8:0353AM EDT DIN:**20080528-IF.«)26(l(.l0005P!~A** Page 28Indiana Register
materials (otherthan pressure-treated, chemically-treated, or painted wood products), and landscape or right-ol-way trimmings. 

## f&J (9) "Boiler" means an enclosed fossil- orother-fuel-fired combustion device used to produce heat and to transfer heatto recirculating water, steam, orother medium. (&) (10) "Bottoming-cycle cogeneration unit" meansa cogeneration unit in which the energy inputto the unit is first used to produce useful thermal energy and at least some ofthe reject heatfrom the useful thermal energy application or process is then used for electricity production. 

## t+\lJ (11) "CAIR authorized account representative" means, with regard to ageneral account, a responsible natural person who is authorized, in accordance with sections 6, 8, and 11 ofthis rule, to transfer and otherwise dispose ofCAIR S02 allowances held in the general account and, with regard to a compliance account, the CAIR designated representative ofthe source. 

## i++J (12) "CAIR designaled representative" means. for a CAIR SO, source and each CAIR SO unit al the source, the natural person who is authorized bythe owners and operators ofthe source and allsuch units at the source, in accordance with sections 6 and 11 ofthis rule, to represent and legally bind each ownerand operator in matters pertaining to the CAIR SO, trading program. Ifthe CAIR S02 source is also a CAIR NO
source, Ihen this natural person shall be the same person as the CAIR designated representative underthe X
CAIR NO annual trading program. 

### itthe CAIR S02 source is also a CAIR NO ozone season source, then this naluriil person shall be the same person as the CAIR designated

### represe~tative undertile CAIR NO

ozone season trading program. Ifthe CAIR SO, source is also subjectto the acid rain program, then this' natural person shall be the same person as the'designated representative underthe acid rain program. Ifthe CAIR SO, source is also subjectto the mercury budgettrading program, then this natural person shall be the

same person as the mercurydesignated representalive underthe mercury budget trading program. (13) "CAIR NO annual trading program" means a multistate nitrogen oxides air pollution control and emission reduction program approved and administered by the U,S. EPA in accordance with 326 lAC 24-1; 40 CFR 96, Subparts AA through 

### II'and 

### 40 GFR 51.123' 40 CFR 51.123(0)(1) or40 CFR 51.123(0)(2)'; or established bythe U.S, EPA in accordance with 40 CFR 97, Subparts AA through 

### II'and 40 CFR 51.123(p)' and 40 CFR 52.35', as a means ofmitigating interstate transportoffine particulates and nitrogen oxides. 

## t+&l (14) "CAIR NO ozone season source" means a source Ihat is SUbjectto the CAIR NO ozone season

. x x trading program. 

### f44) (15) "CAIR NO ozone season trading program" means a multistate nitrogen oxides air pollution control and emission reduelion program approved ancj.administered bythe U.S. EPA in accordance with }26 lAC 24- }; 40 CFR 96, Subparts AAAA Ihrough 

### 1111' and 4il-GFR 51.123' 40 CFR 51.123(aa)(1) or40 CFR 51.123(aa)(2), and 40 CFR 51.123(bb)(1), 40 CFR 51.123(bb)(2), or40 CFR 51.123(dd)'; orestablished by the U.S. EPA in accordance wilh40 CFR 97, Subparts AAAAthrough IIII' and 40 CFR 51.123(ee)' and 40 CFR 52.35', as a means of mitigating interstate transport ofozone and nitrogen oxides. 

## f+5l (16) "CAIR NO source" means a source that is subjectto the CAIR NO annual trading program. 

### fffi) (17) "CAIR

### per~'il" means the legally binding and federally enforceable (ivritten document, or portion of such document, issued bythe department undersection 7ofthis rule, including any permit revisions, specifying the CAIR S02 trading program requirements applicable to aCAIR 502 source, to each CAIR S02 unit at Ihe source, and to the owners and operators and the CAIR designated representative of Ihe source and each such unit. 

### (+7J (18) "CAIR SO, allowance" means a limited authorization issued bytile U.S. EPA underthe acid min program, or by a permitting authority underprovisions of a state implementation plan that are approved under 40 CFR 51.124(0)(1), 40 CFR 51.124(0)(2), or40 CFR 51.124(r)', or under40 CFR g7', to emit sulfurdioxide during the control period ofthe specified calendaryearforwhich the authorization is allocated orof any calendaryearthereafter underthe CAIR S02 trading program as follows: (A) Forone (1) CAIR SO, allowance allocated for aconlrol period in ayear before 2010. one (1) Ion of sullurdioxide, except as provided in section 11 (k) of Ihis rule. (B) Forone (1) CAIR SO, allowance allocated for acontrol period in 2010 through 2014, fifty-hundredths (0.50) ton ofsulfurdioxidt, except as provided in section 11 (k) ofthis rule. (C) Forone (1) CAIR SO. allowance allocated for a control period in 2015 or later, thirty-five hundredths (0.35) ton of sulfurdioxidt, except as provided in section 11 (k) ofthis rule. (0) An authorization to emit sulfm dioxide that is not issued underthe acid rain program, provisions of a state implementation plan that are approved under40 CFR 51.124(0)(1).40 CFR 51.124(0)(2), or40 CFR 51.124Ir)' or under40 CFR 97'. shall nol be a CAIR SO. allowance. 

### (4-8) (19) ;'CAIF, S02 allowance deduction" or "deduct CAIR'SO, allowances" means Ihe permanent withdrawal of CAIR S02 allowances by tile US EPA from a compliance account, for example, in orderto accountfor a specified number oftons oftolal sulfurdioxide emissions from all CAIR SO, units al a CAIR S02 source for a control period, deterrnined in accord<mce with section 10 ofthis rule, or to account for excess emissions, 

## t+\lJ (20) "CAIR SO, allowances held" or "hold CAIR S02 allowances" means Ihe CAIR SO, allowances recordeel by Ihe U.S EPA, orsubmltled 10 the U.S. EPAfor recordation, in accordance wilh sections 8, 9, and

Dale: M"ly 29,2008 8:03:53AI\'1 EDT DIN·**20080528·lr~·326080005PRA** Pane 29Indiana Register
11 ofthis rule or40 CFR 73', in a CAIR SO allowance tracking system account. (21) "CAIR S02 allowance tracking system" means the system byWllich the U.S. EPA records allocations, deductions, and transfers ofCAtR SO, allowances underthe CAIR S02 trading program. This is the same system as the allowance tracking system under40 CFR 72.2' bywhich tne U.S. EPA records allocations, deduction, and transfers of acid rain S02 allowances underthe acid rain program. 

## f241 (22) "CAIR S02 allowance tracking system account" means an account in the CAIR S02 allowance tracking system established bythe U.S EPAfor purposes of recording the allocation, holding, transferring, or deducting of CAIR SO, allowances. Such allowances will be allocated, held, deducted, ortransferred only as whole allowances.

. 

### \ti') (23) "CAIR S02 emissions limitation" means, for a**CAIF~** SO. source, the tonnage equivalent, in SO, emissions in acontrol period, ofthe CAIR S02 allowances available for deduction for the source undersection 8U) and 8(k) oftllis rule for the control period

.. (24) "CAIR S02 source" means a source that includes one (1) or more CAIR S02 units. 

## f241 (25) "CAIR S02 trading program" means a multistate sulfurdioxide air pollution control and emission reduction program approved and administered by the U.S. EPA in accordance with this rule; 40 CFR 96, Subparts AAA through III' and 

### 40 CFR 

### 51.124' 40 CFR 51.124(0)(1) or40 CFR 51.124(0)(2)'; or established bythe U.S. EPA in accordance with 40 CFR 97, Subparts AAA tl1rough III' and 40 CFR 51.124(1')' and 40 CFR 52.36', as a means of mitigating Interstate transport offine particulates and sulfurdioxide. 

## RB1 (26) "CAIR S02 unit" means a unitthat is subject to the CAIR S02 trading program undersection 1 ofthis rule and, except for purposes ofsection 3ofthis rule, a CAIR S02 opt-in unit undersection 11 ofthis rule. (27) "Coal" means any solid fuel classified as anthracite, bituminous, subbituminous, or lignite. 

## R+1 (28) "Coal-derived fuel" means anyfuel, whether In a solid, liquid, or gaseous state, produced by the mechanical, thermal, or Chemical processing ofcoal. (29) "Coal-fired" means combusting any amount ofcoal orcoal-derived fuel, alone, or in combination with any amount of any otherfuel. (30) "Cogeneration unit" means astationary, fossil-fuel-fired boileror stationary, fossil-fuel-fired combustion turbine:

(A) Ilaving equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, orcooling purposes through the sequential use ofenergy; 

### afl4 (B) producing during the twelve (12) month period starting on the date the unitfirst produces electricity and during any calendaryear afterthe calendar in which the unitfirst produces electricity:

(i) for atopping-cycle cogeneration unit.

(AA) useful thermal energy not less than five percent (5%) oftotal energy output; and (BB) useful powerthat, when added to one-half 

### (\1,) of useful therrt1al energy produced, is not less tllan forty-two and one-half percent (42.5%) oftotal energy input, If useful thermal energy produced is fifteen percent (15%) or more oftotal energy output, or not less than forty-five percent (45%) oftotal energy input, if useful thermal energy produced is less than fifteen percent (15%) oftotal energy output; and (Ii) for a bottoming-cycle cogeneration unit, useful power not less than forty-five percent (45%) oftofal energy input; and (C) provided that the total energy input underclause (B)(i)(BB) and (B)(ii) shall equal the unit's total energy inputfrom all fuel except biomass ifthe unit is a boiler. (J{J) (31) "Combustion turbine" means: (A) an enclosed device comprising a compressor, a combustor, and aturbine and in which the flue gas resulting from the combustion of fuel In the combustor passes through tile turbine, rotating the turbine; and (B) ifthe enclosed device underclause (A) is combined cycle, any associated duct burner, heat recovery steam generatorand stearn turbine. 

### fd-1-) (32) "Commence commercial operation" means, with regard to a unit, the following: (A) To have begun to produce steam, gas, or other heated mediurn used to generate electricity for sale or use, including test generation, except as provided in sections 3and 11(f)(10) ofthis rule, subject to the following:

(i) For a unit that is a**CAIF~** S02 unit undersection 1 oflhis rule on the laterof November 15, 1990, orthe date the unit commences commercial operation as defined in Ihis clause and 

### Blat subsequently undergoes

a physical change, otherthan replacernent ofthe unil by a unil at the same source, such date shall remain the date ofcommencement ofcommercial operation ofthe unit, which shall continue to be treated as the

same uniL (ii) Fora unil that is a CAIR SO. unit under section 1 ofthis rule on the laterof November 15, 1990, orthe date the unit commences comn'iercial operation as delined in Ihis clause and that is subsequenlly replaced by a unit at the same source (for example, repowered), such date shall remain tile replaced unit's date of commencement ofcommercial operation, and the replacement unit shall be treated as aseparate unitwith

a separate dale for commencement of commercial operation as defined in this clause orclause (8) as appropriate.

Date' May 29,2008 8:03:53AM ELYI DIN:**20080528-11~·3260BOOO~)f)f~A** Page 30

### Indiana Register (6) Notwithstanding clause (A) and except as provided in section 3ofthis rule, fora unitthat is not aCAIR SO, unit undersection 1 ofthis rule on the laterof November 15, 1990, ordate the unit commences commercial operation as defined in clause (A), the unit's date forcommencement ofcommercial operation shall be the date on which the unit becomes a CAIR S02 unit undersection 1 ofthis rule, subject to the following:

(i) Fora unitwith adate for commencement ofcommercial operation as defined in this clause and that subsequently undergoes a physical change (othertllan replacement ofthe unit by a unil at the same source) such date shall remain the date ofcommencement ofcommercial operation, which shall continue to be treated as the same unit. (ii) Fora unit with a date for commencement ofcommercial operation as defined in this clause and that is subsequently replaced by a unit atthe same source (forexample, repowered), such date shall remain the replaced unit's date of commencement ofcommercial operation, and the replacement unitshall be treated

as aseparate unitwith a separate date for commencement of commercial operation as defined in this clause, orclause (6), as appropriate, 

## f32i (33) "Commence operation" means the following: (A) To have begun any mechanical, chemical, orelectronic process, including, witll regard to a unit, start-up ofa unit's combustion chamber, except as provided in section 11 (f)(10) ofthis rule, (6) Fora unit that undergoes a physical change (otherthan replacement oftile unit by a unit atthe same source) after Ihe dale the unit commences operation as defined in clause (A), such date shall remain the dale of commencementofoperation ofthe unit, which shall continue to be treate'd as the same unit. (C) Fora unitthat is replaced by aunit atthe same source (forexample, repowered) afterthe date the unit

commences operation as defined in clause (A), such date shall remain the replaced unit's date of commencement, and the replacement unitshall be treated as a separate unitwith aseparate date for commencement of operation as defined in this clause orclause (A) or (6), as appropriate, except as provided in section 11 (f)(1 0) ofthis rule, (34) "Common stack means" asingle flue tl1Iough which emissions from two (2) or more units are exhausted, (J4) (35) "Compliance account" means a CAIR SOJ allowance tracking system account, established bythe U,S, EPAfora CAIR S02 source subjectto an aci rain emissions limitations under40 CFR 73,31(a)' or40 CFR 73,31 (b)' orfor any otherCAIR SO, source undersection 8or 11 ofthis rule, in which any CAIR S02 allowance allocations forthe CAIR SO, units atthe source are initially recorded and in which are held anyCAIR SO, allowances available for use for a control period in orderto meetthe source's CAIR SO, emissions limitation In accordance with section 8U) and 8(k) ofthis rule, f3-&1 (36) 

### "Continuous emission monitoring system" or "CEMS" means the equipment required undersection 10 ofthis rule to sample, analyze, measure, and provide, by means ofreadings recorded at least once every fifteen (15) minutes, using an automated data acquisition and handling system (DAHS), a permanent record of sulfurdioxide emissions, stack gasvolumetricflow rate, stackgas moisture content, and oxygen orcarbon dioxide concentration, as applicable, in a mannerconsistent with 40 CFR 75', The following systems are the principal types ofcontinuous emission monitoring systems required undersection 

### 10ofthis rule:

(A) aflow monitoring system, consisting of a stackflow rate monitorand an automated data acquisition and handling system and providing a permanent, continuous record ofstack gasvolumetric flow rate, in standard cubicfeet per 110ur(SCfll); (6) a sulfurdioxide monitoring system, consisting ofa S02 pollutant concentration monitor and an automated data acquisition and handling system and proViding a permanent, continuous record ofSO, emissions, in parts per million (ppm); (C) a moisture monitoring system, as defined in 40 CFR 75,11(b)(2)' and providing apermanent, continuous record of

### Ole stack gas moisture content, in percent H

### 20; (0) a carbon dioxide monitoring system, consisting of a CO2 

### pollutant concentration monitor, or an oxygen monitorplus suitable mathematical equations from which the CO2 

### concentration is derived, and an automated data acquisition and handling system and providing a permanent, continuous record of CO, emissions, in percent CO2; and 2 

### (E) an oxygen monitoringsystem, consisting of an 02 concentration monitorand an automated data acquisition and handling system and providing aperrnanent, continuous record of02' in percent 0;( 

### (37) "Control period" means tile period beginning January 1 ofacalendar year, eicept as provided in section 4(c)(2) ofthis rule, and ending on OecOlllber31 ofthe same year, inclusive. (3·7) (38) "Emissions" means air pollutants exhausted from aunitorsource into the atmosphere, as measured, recorded, and reported to the U,S, EPA by the CAIR designated representative and as determined by the U,S, EPA in accordance with section 10ofthis rule. (39) "Excess emissions" means any ton, or pOl'tion of aton, of sulfurdioxide emitted by Ille CAIR SO units at a CAIR S02 source during acontrol period that exceeds the CAIR SO emissions linlitation for 01& 

### source, provided that any portion of aton of excess emissions shall be treatecfas one (1) ton of excess

Dale May29,2008 8:03:53AM f:':OT DIN:**20080528·,lf~"326080005PRA**Indiana Register
emissions. (40) "Fossil fuel" means natural gas, petroleum, coal, or anyform of solid, liquid, orgaseous fuel derived from such material. 

### (44) (41) "Fossil-fuel-fired" means, with regard to a unit, combusting any amount offossil fuel in any calendar year. 

### (4+) (42) "General account" means a CAIR SO, allowance tracking system account, established undersection 8

### ofthis rule, that is not acompliance account.

- 

### \42-) (43) "Generator" means a device that produces electricity. (44) "Heat input" means, with regard to aspecified period oftime, the product, in million British thermal units per unit oftime (MMBtu/time) ofthe gross calorific value ofthe fuel, in British thermal units per pound (Btu/lb), divided by one million (1,000,000) British thermal units per million British thermal units (Btu/MMBtu) and multiplied bythe fuel feed rate into a combustion device, in pounds of fuel per unit oftime (Ib of fuel/time),

as measured, recorded, and reported to the U.S. EPA by the CAIR designated representative and determined bythe U.S. EPA in accordance with section 10 ofthis rule and excluding the heat derived from preheated combustion air, recirculated flue gases, or exhaust from othersources. 

### (44) (45) "Heat inpul rate" means the amount of heat input, in million British thermal units (MMBtu), divided by unit operating time, in hours, or, with regard to a specific fuel, the amount of heat input attributed to the fuel, in million British thermal units (MMBtu), divided by the unit operaling time, in hours, during which the unit combusts the fuel. (4e1 (46) "Life-of-the-unit, firm power contractual arrangement" means a unit participation powersales agreement underwhich a utilityor industrial customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity and associated energy generated by any specified unit and pays its proportional amount of such unit's total costs, pursuant to acontract:

(A) for the life ofthe unit; (B) for

# acumulative term of no less than thirty (30) years, including contracts that permit an election for early termination; or (C) for a period no less than twenty-five (25) years orseventy percent (70%) ofthe economic useful life of the unit deterniined as ofthe time the unit is built, with option rights to purchase or release SOrl18 portion of the nameplate capacity and associated energy generated bythe unit at the end ofthe period. (4e1 (47) "Maximum design heat input" means the maximum amount offuel per hour, in British thermal units per hour (Btu/hr), that a unit is capable ofcombusting on a steady state basis as ofthe initial installation ofthe unit as specified bythe manufacturerofthe unit. 

### (47-J (48) "Mercury budget trading program" means a multistate mercury air pollution control and emission reduction program approved and administered by the U.S. EPA in accordance with 40 CFR 60, Subpart HHHH' and 40 CFR 60.24(h)(6)', or established bythe U.S. EPA underthe Clean AirAct, Section 111, as a
means of reducing national mercury emissions. 

### f4<;J (49) "Monitoring system" means any monitoring system that meets the requirements of section 10ofthis rule, including a continuous emissions monitoring system, an alternative monitoring system, or an excepted monitoring system under40 CFR 75'. 

### (44) (50) "Most stringent state orfedel'al SO, emissions limitation" means, with regard to a unit, the lowest SO, emissions limitation, In terms ofpounds per million British thermal units (lb/MMBtu), that is applicable to the unit understate orfederal law, regardless of the averaging period to which the emissions limitation applies. 

## iff)) (51) "Nameplate capacity" means, starting from the initial installation ofagenerator, the maximum electrical generating output, in megawatt electrical (MWe), tllat the generator is capable of producing on a steady state basis and during continuous operation (when not restricted by seasonal orotherderatings) as of such installation as specified by the manufacturerofthe generatoror, starting from the completion ofany subsequent physical change in the generatm resulting in an increase in the maximum electrical generating output, in megawatt electrical (MWe), that the generator is capable of producing on a steady state basis and during continuous operation (when not restricted 

### by seasonal or otherderatings) such increased maximum amount as of such completion as specified bythe person conducting tile physical change. 

### \-§+) (52) "Operator" means any person who operates, controls, orsupervises aCAIR SO, unit ora CAIR SO,

source and shall include, but not be limited to, any holding company, utilitysystem, Or plant managerofsuch

## a unitor Source. (53) "Owner" means any ofthe following persons: (Al With regard to a CAIR S02 source or aCAIR SO unit at a source. respectively, any ofthe following:

(il aRy Holderof any portion ofthe legal or equitable'title in a CAIR S02 unit at the source orthe CAIR S02 unit. (ii) aRy Holderofa leasehold interest in a CAIR SO. unit at the SOurce orthe CAIR SO unit. 6f (iii) aRy Purchaserof powerfrom a

## CAIF~ S02 unit

# at the source ortile CAIR S02 unitJi,dera**Iife~of-the-linit,** firm power contractual arrangement; provided Hlat, unless expres'sly provided for in a leasehold agreement, ownershall not include a p,-'lssive lessor, or a person who has an equitable interest

Date: May 29,2008 8:03:53Af\ll EDT DIN: 2008052B-II\-J2GOa0005PHA Page 32Indiana Register through such lessor, whose rental payments are not based, eitherdirectly or indirectly, on the revenues or income from such CAIR S02 unit. 9f (B) With regard to any general account, any person who has an ownership interestwith respect to the CAIR SO allowances held in the general account and WllO is subjectto the binding agreementforthe CAIR

## aut~orized account representative to represent the person's ownership interestwith respect to CAIR S02 allowances.

(54) "Permitting authority" means the state air pollution control agency, local agency, otherstate agency,
orotheragency authorized bythe U.S. EPAto issue or revise permits to meetthe requirements otthe CAIR NO annual trading program in-a€€effia-R€€-wHhsootioR-7 of this r-t.::lie or, 

### if no such agency has been so autRorized, the U.S. EPA. 

## f&41 (55) "Potential electrical output capacity" means thirty-three percent (33%) ofa unit's maximum design heat input, divided by three thousand four hundred thirteen (3,413) Btu/kilowatt hour, divided by one thousand (1,000) kilowatt hour/megawatt hour, and multiplied by eighttllousand seven hundred sixty (8,760) hours/year. (56) "Receive" or "receipt of" means, when referring to the department orthe U.S. EPA, to come into possession ofa document, information, orcorrespondence, whether sent in hard copy orby authorized electronictransmission, as indicated in an official log, or

### by a notation made on the document, information, or correspondence, bythe department orthe U.S. EPA in the regular course of business. 

## fW1 (57) "Recordation", "record", or "recorded" means, with regard to CAIR S02 allowances, the movementof CAIR S02 allowances bythe U.S. EPA into or between CAIR S02 allowance tracking system accounts, for purposes of allocation, transfer, ordeduction. 

## 0+7 (58) "Reference method" means any direct test method ofsampling and analyzing for an air pOllutant as specified in 40 CFR 75.22'. 

### (§81 (59) "Replacement", "replace", or "replaced" means, with regard to a unit, the demolishing ofa unit, orthe permanent shutdown and permanent disabling ofa unit, and the construction of another unit (the replacement unit) to be used instead ofthe demolished orshutdown unit (the replaced unit). 

### f§9) (60) "Repowered" means, with regard to a unit, replacement ofa coal-fired boilerwith one (1) ofthe following coal-fired technologies atthe same source as the coal-fired boiler: (A) atmospheric or pressurized fluidized bed combustion; (B) integrated gasification combined cycle; (C) magnetohydrodynamics; (D) direct and indirect coal-fired turbines; (E) integrated gasification fuel cells; or (F) as determined by the U.S. EPA in consultation with the Secretaryof Energy, a derivative ofone (1) or
more ofthe technologies under clauses (A) through (E) and any olhercoal-fired technology capable of controlling multiple combustion emissions simultaneouslywith improved boileror generation efficiency and with significantly greaterwaste reduction relative to the performance oftechnology in widespread commercial use as ofJanuary 1, 2005. (61) "Sequential use ofenergy" means: (A) for a topping-cycle cogeneration unit, the use of reject heatfrom electricity production in a useful thermal energy application or process; or (8) for a bottoming-cycle cogeneration unit, the use of reject heat from useful t1lermal energy application or process in electricity production. 

## f&+) (62) "Serial number" means, for a CAIR S02 allowance, the unique identification numberassigned to eaclyCAIR SO allowance by the U.S. EPA. 

## \B2J (63) "Solidwaste incineration unit" means a stationary, fossil-fuel-fired boilerorstationary, fossil-fuel-fired combustion turbine that is a solid waste incineration units as defined in tile Clean AirAct, Seelion 129(g)(1). 

### f&3-) (64) "Source" means all buildings, structures, or installations located in one (1) or more contiguous or adjacent properties undercommon control ofthe same person or persons. For purposes of Section 502(c) 

### of the Clean AirAct, asource, including a source with mUltiple units, shall be considered a single facility. 

## f€M1(65) "Submit" or "serve" means to send ortransmit adocument, information, or correspondence to the person specified in accordance with the applicable rule:

(A) in person; (8) by United States Postal Service; or (C) by other means ofdispatch ortransmission and delivery. Compliance with any submission or service deadline shall be determined by the date ofdispatch transmission, or mailing and not tile date of receipt bythe department or U.S. EPA. f€§) (66) "Title V operating permit" or "Part 70 operating permit" means a permit issued underQ.?I2JAC 2-'1. f€{;)(67) "Title V operating permit regulations" means the rules under326 lAC 2-7. 

## 0+7 (68) "Ton" means two thousand (2,000) pounds. For the purpose ofdetermining compliance with tile CAIR 502 emissions linlitation, total tons of sulfurdioxide emissions for a control period shall be calculated as the sum aT all recorded hourly emissions, orthe mass equivalent ofthe recorded hourly emission rates, in

Dale: iv1cJy29,2008 8:03:53AM EDT DIN:**?o()g052a-If~"32G080005pr~f-\ ~}age**  33Indiana Register
accordance with section 10ofthis rule, but with any remaining fraction of aton equal to or greaterthan fifty-hundredths (0.50) tons deemed to equal one (1) ton and any remaining fraction ofa ton less than fifty-hundredths (0.50) tons deemed to equal zero (0) tons. 

## f6!l1 (69) "Topping-cycle cogeneration unit" means a cogeneration unit in which the energy inputto the unit is first used to produce useful power, including electricity, and at least some ofthe reject heatfrom the electricity production is then used to provide useful thermal energy. (70) "Total energy input" means, with regard to acogeneration unit, lotal energy ofall forms supplied to the cogeneralion unit, excluding energy produced bythe cogeneration unit itself. Each form ofenergy supplied shall be measured by the lower heating value ofthat form ofenergy calculated as follows: LHV 

### = HHV -10.55(W + 9H)

Where: LHV 

### = Lower heating value offuel in Btu/hr. HHV 

### = Higher heating value offuel in Btu/hr. W 

### = Weight 

### % of moisture in fuel. H 

### = Weight 

### %of hydrogen in fuel. 

### P4) (71) "Total energy output" means, with regard to a cogeneration unit, the sum oi useful powerand useful thermal energy produced by the cogeneration unit. 

### f7+l (72) "Unit" means a stationary, fossil-fuel-fired boilerorcombustion turbine or otherstationary, fossil-fuel-fired combustion device. 

### p;!j (73) "Unit operating day" means a calendar day in which a unit combusts anyfuel. 

## f7-31 (74) "Unit operating hour" or "hourof unit operation" means an hour in which a unit combusts any fuel. 

### (+4J (75) "Useful power" means, with regard to a cogeneration unit, electricity or mechanical energy made available for use, excluding any such energy used in the power production process, whicl1 process includes, but is not limited to, anyon-site processing ortreatment offuel combusted atthe unit and anyon-site emission controls. 

### (+-§) (76) "Useful thermal energy" means, with regard to a cogeneration unit, thermal energy that is:

(A) made available to an industrial orcommercia! process, not a power production process, excluding any heatcontained in condensate return or makeup water; (6) used in a heating application (forexample, space heating ordomestic hotwater heating); or (C) used in a space cooling application (that is, thermal energy used by an absorption chiller). 

### ffflJ (77) "Utility power distribution system" means the portion of an electricity grid owned oroperated by a utility and dedicated to delivering electricityto customers.
*These documents are incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitol Sireel NW, Washington, D.C. 20401 orare available for review and copying at the Indiana Department of Environmental Management, Office ofAir Quality, Indiana Government Center-North,

,-Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.



### (AirPollution ControlBoard; 326 

### lAC24-2-2; 

### filedJan 26, 

### 2007, 10;25a.m.: 

### 20070221-IR-326050117FRA; errata filedJan 29, 

### 2007, 243

### p.m

.. 20070221-IR-326050117 ACAI

SECTION**1.126JA.C.~24::2.,1IS** AMENDED TO READ AS FOLLOWS

326 lAC 24-2-7 Permit requirements Authority:**IC~J';):H:a; !~_1},11-3-4;** **~.1;):17·3·11** Affected: LC1J:1§; 

## IL1l:JI

Sec. 

### I. (a) Foreach CAIR S02 source required to have a federally enforceahle permit, the permit shall include

a CAIR permit administered by the department as follows: (1) The CAIR portion of the Part 70 permit under326 lAC 2-'1 shall be administered in accordance with 326 lAL2c1 orthe CAIR portion ofthe federally enforceable state operating permit (FESOP) shall be administered in accordance with 326!A.C_2-,!!, as applicable, except as provided otherwise bythis section

or sections 

### 3 and 11 ofthis rule (2) Each**C/\ir~** permit, inciuding a draft or proposed**CAl!~** permit, if applicable, shail contain, with regard to the CAIR S02 source and the CAIR**SO~** units at the source covered by the CAIR permit, all applicable CAIR SO. trading program, CAIR NO annualtiading program, and CAIR NO ozone season trading program 2 requir"ellHmls and shall be complete and separable portion of tl1e1:>;;'11"1 70 operating permit or FESOP.

(b) Requirements for the SUbl11ission of CAIR permit applications are as follows:

Date: May**2~),2()Og** HOJ.53Afv\ E:Dl DIN.**2U08052H·Il~-32()080005F'HA**Indiana Regisler (1) The CAIR designated representative ofany CAIR SO, source required to have a Part 70 operating permit

or FESOP shall submitto the department a complete CAIR permit application undersubsection (c) forthe SOurce covering each CAIR S02 unit atthe source at leasttwo hundred seventy (270) days before the laterof January 1,2010, orthe date on which the CAIR SO, unit commences commercial operation, except as provided in section 11 (e) ofthis rule. (2) Fora CAIR SO source required to have a Part 70 operating permit or FESOP, the CAIR designated representative shafi submit a complete CAIR permit application undersubsection (c) forthe source covering each CAIR SO, unit atthe source to renew the CAIR permit in accordance with 326 lAC 2-7-4(a)(1)(D) or326 !AC 2-8,,;l(h), as applicable, except as provided in section 11 (e) ofthis rule.

(c) In addition to the requirements of326 lAC 2 7 

### 4(e), A complete CAIR permit application shall include the following elements concerning the CAIR SO, source for which the application is submitted: (1) Identification ofthe CAIR SO source (2) Identification of each CAIR

# s6 unit atthe CAIR SO source. (3) The standard requirements under section 4 ofthis rlfie.

(d) !f>-aBeiliBfHo the req"irements uneer 326 IP,c 2 7, Each CAIR permit shall contain, in a format prescribed by the department, all elements required for a complete CAIR permit application undersubsection (c).

(e) Each CAIR permit is deemed to incorporate automatically the definitions ofterms undersection 2ofthis rule and, upon recordation bythe U.S. EPA, undersection 8, 9, or 11 ofthis rule, every allocation, transfer, or deduction ofa CAIR SO, allowance to orfrom the compliance account ofthe CAIR SO, source covered by the permit.

(f) The initial CAIR permit covering aCAIR unitforwhich acomptete CAIR permit application is timely submitted under subsection (b) shall become effective upon issuance.

(g) TI1e term ofthe CAIR permit shall be set bythe department, as necessary to facititate coordination ofthe renewal ofthe CAIR permitwith issuance, revision, or renewal ofthe CAIR SO, source's Part 70 operating permit

or FESOP.

(h) Except as provided in subsection (e), the department shall revise the CAIR permit, as necessary, in accordance with the permit modification and revision provisions under**l~.IAC** 2-7 or 326 lAC 2-8, as applicable. 

### (AirPollution ControlBoard:

### 326 lAC

### 24-2-7: filedJan 

### 26, 2007, 10:25a.m.:20070221-IR-326050117FRA)

SECTION 8. 326 lAC 24-2-8 IS AMENDED TO READ AS FOLLOWS:

326 IAC_21-2-8 CAIR SO, allowance tracking system Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 8. (a) Except as provided in section 11 (f)(7) ofthis rule, upon receipt ofa complete certificate of representation undersection 6(h) ofthis rule, 1I1e U.S EPAwill establish a compliance account forthe CAIR S02

source for which the certificate of representation was submitted unless the source already has a compliance account.

(b) Any person may applyto open ageneral account for the purpose at holding and transferring CAIR SO, allO\vanccs, An application for 3 general account rnay desiflnate onc (1) and only one (1) CAIR authorized

. account representative and one (1) and only one (1) alternate CAIR authorized account representative who may act on behalf ofthe CAIR authorized account representative. The agreement by which the alternate CAIR authorized account representative is selected shall include a procedure for authorizing the alternate CAIR authorized account representative to act in lieu ofthe CAIR authorized account representative. The establishment ofthe general account shall be subject to the**followin~r** (1) A complete application for ageneral account shall be submitted to the US. EPA and sl1all include the

(Jale May 29,2008 H:03:53AM [Dl DIN: 20080528·IR32G08000SI:lF<AIndiana Register following elements in aformat prescribed bythe U.S. EPA: (A) The following information concerning the CAIR authorized account representative and any alternate CAIR authorized account representative:

(i) Name. (ii) Mailing address. (iii) E-mail address, ifany. (iv) Telephone number (v) Facsimile transmission number, ifany. (B) Organization name and type at organization, ifapplicable. (C) A list ofall persons subJecl to a binding agreement forthe CAIR authorized account representative and any alternate CAIR authorized account representative to represent their ownership interestwith respect to the CAIR S02 allowances hetd in the general account. (0) The following certification statement bythe CAIR authorized account representative and any alternate CAIR authorized account representative: "I certifythat Iwas selected as the CAIR authorized account representative orthe alternate CAIR authorized account representative, as applicable, by an agreementthat is binding on all persons who have an ownership interestwith respect to CAIR S02 allowances held in the general account. I certifythat I have all the necessaryauthorityto carry out my duties and responsibilities under the CAIR SO, trading program on behalfofsuch persons and that each such person shall be fully bound by my representations, actions, inactions, orsubmissions and by any orderordecision issued to me bythe U.S. EPA ora court regarding the general account.". (E) The signature ofthe CAIR authorized account representative and any alternate CAIR authorized account representative and the dates signed. (F) Unless otherwise required bythe department orthe U.S. EPA, documents ofagreement referred to in the application for ageneral account shall not be submitted to the department orthe U.S. EPA. Neitherthe department northe U.S. EPA shall be underany obligation to review orevaluate the sufficiency ofsuch documents, ifsubmitted. (2) Upon receipt bythe U.S. EPAof acomplete application for ageneral account undersubdivision (1), the following shall apply: (A) The U.S. EPAwill estaolish a general account forthe person or persons forwhom the application is submitted. (B) The CAIR authorized account representative and any alternate CAIR authorized account representative forthe general account shall represent and, 

### by his or her representations, actions, inactions, or submissions, legally bind each person who has an ownership interestwith respect to CAIR SO allowances held in the general account in all matters pertaining to the CAIR S02 trading program, notwithstanding any agreement between the CAIR authorized account representative orany alternate CAIR authorized account representative and such person. Any such person shall be bound by any orderordecision issued to the CAIR authorized account representative orany alternate CAIR authorized account representative by the U.S. EPAora court regarding the general account. (C) Any representation, action, inaction, orsubmission by any alternate CAIR authorized account representative shall be deemed to be a representation, action, inaction, orsubmission 

### by the CAIR authorized account representative. (0) Each submission concerning the general account stlall be submitted, signed, and certified by the CAIR authorized account representative orany alternate CAIR authorized account representative forthe persons having an ownership interestwith respect to CAIR S02 allowances held in the general account. Each such submission shall include the following certification statement bythe CAIR authorized account representative Orany alternate CAIR authorized account representative: "I am authorized to make this submission on behalfofthe persons having an ownership interest with respect to the CAIR S02 allowances held in the general accounl. Icertify underpenalty oflawthat I have personally examined, and am lamiliarwitll, tile statements and information submitted in this document and all its attachments. Based on my inquiryof those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belieftrue, accurate, and complete. I am aware that there

are significant penalties for submitting false statements and information oromitting required statements and information, including the possibility offine or imprisonment.". (E) The U.S. EPAwill accept oract on a submission concerning the general account only ifthe submission has been made, signed, and certified in accordance with clause (0). (3) The following shall apply to changing the CAIR authorized account representative oralternate CAIR authorized account representative, and changes in persons with ownership interest

(A) The CAIR authorized account representative for ageneral account may be changed at anytime upon receipt by the U.S. EPA ofa supersedinfJ complete application for ageneral account under subdivision (1). Notwithstanding any such c11ange, all representations, actions, inactions, and submissions by the previous CAlf, authorized account representative before Ille time and date wilen the U.S. EPA receives tile

[Jail'): May 29,2008 8:03'53AM l:D"J DIN:**20080528-11:';'·32(i080005PI~A**Indiana Register superseding application for ageneral account shall be binding on the new CAIR authorized account representative and the persons with an ownership interestwith respect to the CAIR S02 allowances in the general account. (B) The alternate CAIR authorized account representative for a general account may be changed at any time upon receipt by the U.S. EPA ofa superseding complete application for a generat account under subdivision (1). Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous alternate CAIR authorized account representative before the time and date when the U.S. EPA receives the superseding application for ageneral account shall be binding on the newalternate CAIR authorized account representative and the persons with an ownership interestwith respect to the CAIR SO allowances in the general account. 2 (C) In the event a person having an ownership interestwith respect to CAIR SO allowances in the general account isnol included in the list of such persons in the application for ageneralaccount, such person shall be deemed to be subjectto and bound by the application for ageneral account, the representation, actions, inactions, and submissions ofthe CAIR authorized account representative and any alternate CAIR authorized account representative oftile account, and the decisions and orders ofthe U.S. EPA ora courl,

as 

### ifthe person were included in such list. (0) Within thirty (30) days following any change in the persons having an ownership interestwith respect to CAIR S02 allowances in the general account, including the addition of a new person, the CAIR authorized account representative orany alternate CAIR authorized account representative shall submit a revision to the application for ageneral account amending the list of persons having an ownership interest with respect to the CAIR S02 allowances in the general accountto include the change. (4) Once acomplete application for a general account under subdivision (1) has been submitted and received, the U.S. EPAwill rely on the application unless and until a superseding complete application for a general account undersubdivision (1) is received by the U.S. EPA. (5) Except as provided in subdivision (3)(A) or (3)(B), no objection orothercommunication submitted to the U.S. EPA concerning the autll0rization, orany representation, action, inaction, orsubmission ofthe CAIR authorized account representative orany alternate CAIR authorized account representative for a general account shall affect any representation, action, inaction, or subrnission ofthe CAIR authorized account representative orany alternate CAIR authorized account representative orthe finality of any decision Ororder by the U.S. EPA underthe CAIR S02 trading program. (6) The U.S. EPAwill not adjudicate any private legal dispute concerning the authorization orany representation, action, inaction, orsubmission ofthe CAIR authorized account representative orany alternative CAIR authorized account representative for ageneral account, including private legal disputes concerning the proceeds of CAIR SO, allowance transfers. (7) The folloWing shall applyto delega"tion bythe CAIR authorized account representative and alternate CAIR authorized account representative:

(A) A CAIR authorized account representative maydelegate, to one (1) or more natural persons, his or her authority to make an electronic submission to the U.S. EPA provided for or required undersections 8 and 9 ofthis rule. (B) An alternate CAIR authorized account representative may delegate, to one (1) or more natural persons, his or herauthority to make an electronic submission to the U.S. EPA provided for or required under sections 8 and 9ofthis rule. (C) In orderto delegate authority 10 make an electronic submission to the U.S. EPA in accordance with clause (A) or (B), the CAIR authorized account representative orthe alternate CAIR authorized account representative, as appropriate, must submit 10 the U.S. EPA a notice ofdelegation, in aformat prescribed bythe U.S EPA, that includes the following elements:

(i) The nan18, address, e-nlail address. telephone number. and facsimile transmission Ilumber, if any, of Ihe following:

(AA) The CAIR authorized account representative oralternate CAlF, authorized account representative. (BB) Each natural person, referred to as an "agent". (ii) Foreach such natural person, a list ofthe type ortypes of electronic submissions underclause (A) or (B) for which authority is delegated to 11im or her. (iii) The following certification statements by such CA1R authorized account representative or alternate CAIR authorized account representative:

(AA) "I agree that any electronic submission 10

### the..; U.S. EPA that is by an agent identified in this notice of delegation and ofa type listed for such agont in this notice of delegation and that is made when I am a CAIR authorized account representative oralternate CAIR authorized representative, as appropriate, and before this notice ofdelegation is superseded by another notice of delegation under326 lAC 24-2- [)(b)(I)(O) shall be deemed 10 be an eleclronic submission by me.". (BB) "Until this notice ofdelegation is superseded by anolher notice of delegation under.326.1AC2.'l,2- i)(b)(7)(0), I agree to maintain an e-mail account and to notity tile US. EPA immediatelyof any cl13nge in

Da!r; May29,2008 S03:53AMEm DIN·**20ml{b28·1f~-J2G080005pr~A** Page 37Indiana Register
my e-mail address unless all delegation ofauthority by me under326 lAC 24-2-8(b)(7) is terminated.". (D) A notice ofdelegation submitted underclause (C) shall be effective, with regard to the CAIR authorized account representative or alternate CAIR authorized account representative identified in such notice, upon receipt ofsuch notice bythe U.S. EPA and until receipt bythe U.S. EPA ofa superseding notice of delegation submitted by such CAIR authorized account representative oralternate CAIR authorized account representative, as appropriate. The superseding notice ofdelegation may replace any previously identified agent, add a new agent, or eliminate entirely any delegation ofauthority. (E) Any electronic submission covered bythe certification in clause (C)(iii)(AA) and made in accordance with

a notice ofdelegation effective underclause (D) shall be deemed to be an electronic submission bythe CAIR authorized account representative or alternate CAIR authorized account representative submitting such notice of delegation.

., .

(c) The U.S. EPAwill assign a unique identifying numberto each account established undersubsection (a) or 

### (b).

(d) Following the establishment ofa CAtR SO allowance tracking system account, all submissions to the U.S. EPA pertaining to the account, including, but not (;mited to, submissions concerning the deduction ortransferof CAIR S02 allowances in the account, shall be made only by the CAIR authorized account representative for the account.

(e) After a compliance account is established undersubsection (a) or40 CFR 73.31 (a) or40 CFR 73.31 (b

## y, the U.S. EPAwill record in the comptiance account any CAIR SO allowance allocated to any CAIR S02 unit at the source for each ofthe thirty (30) years starting the tater of

## 20fo orthe year in which the compliance account is established and any CAIR SO. allowance allocated for each ofthe thirty (30) years starting the laterof2010 or the year in which the comp!ian 2 ce account is established and transferred to the source in accordance with section 9ofthis rule or40 CFR 73, Subpart D'.

(f) In 2011 and each yearthereafter, after U.S. EPA has completed all deductions undersubsection (k)(1), the U.S. EPAwill record in the compliance account any CAIR SO allowance allocated to any CAIR S02 unit at the

source for the newthirtieth year, that is, the yearthat is thirty (30) years afterthe calendar yearforwhich such deductions are or could be made, and any CAIR SO allowance allocated for the newthirtieth year and transferred to the source in accordance with section ofthis rule or40 CFR 73, Subpart D'.

(g) After a general account is established undersubsection (b) or40 CFR 73.31(c)', the U.S. EPAwill record in the general account any CAIR SO allowance allocated for eacll ofthe thirty (30) years starting the laterof 2010 orthe year in which the general account is established and transferred to the general account in accordance with section 9 ofthis rule or40 CFR 73, Subpart D'.

(h) In 2011 and eacll yearthereafter, after U.S. EPA has completed all deductions under subsection (k)(1), the U.S. EPAwill record in the general account any CAIR S02 allowance allocated forthe newtllirtieth year, that is, IIle yeartllat is thirty (30) years afterthe calendaryearfor whicll such deductions are or could be made, and transferred to the general account in accordance with section 9 ofthis rule or40 CFR 73, Subpart D'.

(i) Wilen recording the allocation of CAIR 

### SOc allowances for a CAIR SO unit in a compliance account, the U.S. EPAwill assign eacll

### CAIF~ S02 allowance

# £unique identification

### nurnb~r that shall Include digits identifying the year of IIle conlrol period forwhich Ille CAIR SO allowance is allocated. 2

(j) The CAIR SO, allowances are available to be deducted for compliance witil a source's CAIR SO, emissions limitation for a control pedod 

### in agiven calendaryear only ifthe CAIR SO, allowances:

- (1) were allocaled for the control pel'iod in tile year or a prioryear; and 2 (2) are held in the COllipliance account as ofthe allowance transfer deadline for the control period or are transferred illto the compiiance account by aCAIR SO, allowance transfer correctly submitted for recordation under section 9(a) through 9(f) ofthis rule bytile allow§nce Iransferdeadline for the conlrol period

(k) The**foliowin~J** shall applyto deductions for purposes of compliance with a source's en1issions limitation: (1) Following IIle recordation, in accordance with section 9(d) through 9(f) oftllis rule, of CAIR SO. allowance transfers submitted for recordation in a source's compliance account bythe allowance transfer deJdlin8 for a

Dotc: M<ly 29,2008 8:03:53Ai'vl UYI DIN:**?00805?8·11~** ..**326080005Pf~A**Indiana Register
control period, the U.S. EPAwill deduct from the compliance account CAIR SO, allowances available under subsection 

### U) in orderto determine whetherthe source meets the CAIR SO, emissions limitation for the control period, as follows:

(A) For a CAIR SO, source subject to an acid rain emissions limitation, the U.S. EPAwill, in the following order:

(i) Deduct the amount of CAIR SO allowances, available undersubsection 

### (j) and not issued by the department undersection 

### 11(j) of (his rule, Ihat is required under

### 40 CFR 73.35(b)' and 

### 40 CFR 73.35(c)' Ifthere are sufficient CAIR SO, allowances 10 complete this deduction, the deduction shall be treated as satisfying the requirements of

### 40 CFR 73.35(b)' and 

### 40 CFR 73.35(c)'. (ii) Deduct Ihe amount ofCAIR SO allowances, available under subsection 

### (j) and nol issued by the department undersection 

### 11 (j) of tRis rule, that is required under

### 40 CFR 73.35(d)' and 

### 40 CFR 77.5'. If there are sufficient CAIR S02 allowances to complete this deduction, the deduction shall be treated as satisfying the requirements of

### 40 CFR 73.35(d)' and 

### 40 CFR 77.5'. (iii) Treating the CAIR SO, allowances deducted under item (ii) as also being deducted underthis item, deduct CAIR SO, allowances available undersubsection 

### (D, including any issued bythe department under section 

### 11(j) of Hi,s rule, in order 10 determine whetherthe source meets the CAIR SO, emissions limitation forthe control period: as follows:

(AA) until the tonnage equivalent ofthe CAIR S02 allowances deducted equals, or exceeds in accordance with subdivisions (2) and (3), the numberoftons oftotal sulfur dioxide emissions, determined in accordance with section 

### 10 of Ihis rule, from all CAIR SO, units al the source for the control period; or (BB) ifthere are insufficient CAIR SO, allowances to complete the deductions in subitem (AA), until no
more CAIR SO, allowances available undersubsection (j), including any issued bythe department under section 

### 11(j) ofthis rule, remain in the compliance account. (B) Fora CAIR SO, source not SUbject to an acid rain emissions limitation, the U.S. EPAwill deduct CAIR SO, allowances available undersubsection (j), including any issued by the deparlment undersection 

### 11(j) ofthis rule, in order 10 determine whetherthe source meets the CAIR SO, emissions limitation for the control period: as-lellews;

(i) untillhe lonnage equivalent ofthe CAIR SO, allowances deducted equals, or exceeds in accordance with subdivisions (2) and (3), the numberoftons oftotal sulfurdioxide emissions, determined in accordance with section 

### 10 of this rule, from all CAIR SO, units at the source for the control period; or (ii) ifthere are insufficient CAIR SO, allowances to complele the deductions in item·(i), until no more CAIR S02 allowances available undersubsection 

### (D, including any issued bythe departmenl undersection 

### 11U) oftliis rule, remain in the compliance account. (2) The CAIR aulhorized account representative for asource's compliance account may requesllhat specific CAIR S02 allowances, identified by serial number, in the compliance account be deducted foremissions or
excess emissions for a conlrol period In accordance With subdiVISion (1) or (4). 

### ef-{§t Such request shall be submitted to the U.S. EPA bythe allowance transfer deadline for the control period and include, in a format prescribed bythe U.S. EPA, the identification ofthe CAIR SO, source and the appropriate serial numbers. (3) The U.S. EPAwill deduct CAIR S02 allowances under subdivision (1) or (4)

## ee--8'J from the source's compliance account, in the absence of an identification or In the case ofa partial identification ofCAIR 502 allowances by serial number undersubdivision (2), on afirst-in, first-out (FIFO) accounling basis in the following order:

(A) Any CAIR S02 allowances that were allocated to Ihe units at the source for a control period before 

### 2010, in the order of recordation. (B) Any CAIR SO. allowances thai were allocated 10 any entily for a control period before 

### 2010 and transferred and rlcorded in Ihe compliance account under section 9 ofthis rule or

### 40 CFR 73, Subpart 0', in the order of recordation. (C) Any CAIR S02 allowances tllal were allocaled to the units at Ihe source for a control period during 

### 2010 through 

### 2014, in Ihe order of recordation. (D) Any CAIR S02 allowances thai were allocated 10 any entily for a control period during 

### 2010 through 

### 2014 and transferred and recorded in Ihe compliance account undersection 9 ofthis rule or

### 40 CFR 73, Subparl 0', in tile order of recordation. (E) Any CAIR SO, allowances that were allocated to the units at the source for a conlrol period in 

### 2015 or later, in the order of recordation. (F) Any CAlf-=< S02 allowances that W8m allocated to any entity for a control period in 2015 or laterand transferred and re-corded in the compliance account undersection 9 ofthis rule or 40 CFR 73, Subpart D*, in the order of recordation. (4) After making the deductions for compliance undersubdivision (1) for a control period in a calendaryear in which tile CAIR S02 SOUI"ce has excess emissions, the U.S. EPAwill deductfrom the source's compliance account the 

### tonnage equivalent in**CA!I~** S02 allowances, allocated for the control period in the immediately following calendaryear, including any issued by tile departmenl undersection 11 (j) of Ihis rule, equal 10, or

Datu May 29.2008 8:03:53AM EDT DIN.**2008052H·II~-326080005r)FU\** Page 39Indiana Register exceeding in accordance with subdivisions (2) and (3), three (3) times the numberoftons ofthe source's

excess emissions minus, ifthe source is subject to an acid rain emission limitation, the amount ofthe CAIR SO allowances required to be deducted undersubdivision (1 )(A)(ii). (5) :1Inyallowance deduction required under subdivision (4) shall not affectthe liability ofthe owners and operators ofthe CAIR SO, source orthe CAIR S02 units at the source for anyfine, penalty, or assessment, or their obligation to comply with any other remedy, fo'rthe same violations, as ordered underthe Clean AirAct or applicable state law. (6) The U.S. EPAwill record in the appropriate compliance account all deductions from such an account under subdivisions (1), (4), and (5) and section 11 ofthis rule. (7) The U.S. EPA may review and conduct independent audits concerning any submission underthe CAIR SO, trading program and make appropriate adjustments ofthe information in the submissions. (8) The U.S. EPA may deduct CAIR SO, allowances from ortransfer CAIR SO, allowances to a source's compliance account based on the information in the submissions, as adjusted under subdivision (7), and record such deductions and transfers.

(I) CAIR SO. allowances rr1aY be banked for future use ortransfer in a compliance account or ageneral account. Any CAIR 802 allowance that is held in a compliance account or a general account shall remain in such account unless and until the CAIR SO, allowance is deducted ortransferred under subsection (j), (k), or (m) or section 9 or 11 ofthis rule.

(m) The U.S. EPA may, at his or hersale discretion and on his or herown motion, correct any error in any CAIR SO, allowance tracking system account. Within ten (10) business days of making such correction, the U.S. EPAwill notify the CAIR authorized account representative for the account.

(n) The CAIR authorized account representative of a general account maysubmit to tile U.S. EPA a request to close the account, which shall include acorrectly submitted allowance transfer undersection 9(a) through 9(f) of this rule for any CAIR SO, allowances in the account to one (1) or more other CAIR SO, allowance tracking system accounts.

-

(0) Ifageneral account has no allowance transfers in orout ofthe account for a twelve (12) month period or longerand does not contain any CAIR SO, allowances, the U.S. EPA may notify the CAIR authorized account representative for tile account that the account shall be closed following twenty (20) business days afterthe notice is sent. The account will be closed afterthe twenty (20) day period unless, before the end ofthe twenty (20) day period, tile U.S. EPA receives acorrectly submitted transfer of CAIR SO, allowances into the account undersection 9(a) through 9(f) ofthis rule or a statement submitted bythe CAIR authorized account

.. representative demonstrating to the satisfaction ofthe U.S. EPA good cause as to why the account should not be closed.

*These documents are incorporated 

### by reference. Copies may be obtained from 

### tile Government Printing Office, 732 North Capitol Street NW, Washington, D.C. 20401 or are available for review and copying at the Indiana Department of Environmental Management, Office ofAirQuality, Indiana 

### GovernmentCenter-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204. 

### (AirPollution ConlrolBoard; 326 

### lAC 24·2-8; 

### filedJan 26,2007, 10:25 

### a.m.:20070221·IR·326050117FRA)

SECTION 9 

## J.29...1.6,1;;2+2,1J IS AMENDED TO READ AS FOLLOWS



## 326 lAC 

## 24-2-11 CAIR SO, opt·in units

Authority**:-lC.J:l:.14~~;** 

## LC.13-1]-J,'!; lQ..13-1]-3-11 Affected: 

## lC.U-1§; IC 

## 13-17

Sec. 11. (a) A CAIR S02 opt-in unit must be a unit that meets the following requirements: (1) Is located in Indiana. (2) Is not a CAIR S02 unit under section 1 ofthis rule and is not covered by a retired unit exenlption that is in effect undersection j ofthis rule. (3) Is not covered 

### by a retired unit exemption that is in effect under40 CFR 72.8' and is not an opt-in source under40 CFR 74'.

Dale May 29,2008 8:03:53AM UYI DIN.2001l0528·1I:'::·J260B0005PHA Paqe 40Indiana Register (4) Has or is required orquatified to have a Part 70 operating permit orotherfederally enforceabte permit. (5) Vents all ofits S02 emissions to a stackand can meetthe monitoring, record keeping, and reporting requirements of section 10 ofthis rule.

(b) Except as otherwise provided sections 1,2,4 through 7, and 8 through 10ofthis rule, a CAtR S02 opt-in unit shall be treated as aCAIR SO, unitfor purposes ofapplying such sections ofthis rule.

.

(c) Solelyfor purposes of applying, as provided in this section, the requirements of section 10 to a unit for which a CAIR opt-in permit application is submitted and notwithdrawn and a CAIR opt-in permit is not yet issued

ordenied underthis section, such unit shall be treated as a CAIR S02 unit before issuance of a CAIR opt-in permit for such unit.

(d) Any CAIR SO opt-in unit, and any unit forwhich a CAIR opt-in permit application is submitted and not withdrawn and a

### CArR opt-in permit is not yet issued ordenied underthis section, located atthe same source as
one (1) or more CAIR S02 units shall have the same CAIR designated representative and alternate CAIR designated representative as such CAIR SO, units.

(e) The CAIR designated representative of a unit meeting the requirements for a CAIR S02 opt-in unit in subsection (a) may applyfor an initial CAIR opt-in permit at anytime, except as provided undersubsection (h)(8) and (h)(9), and, in orderto apply, must submitthe following: (1) A complete CAIR permit application undersection 7(c) ofthis rule. (2) A certification, in aformat specified bythe department, that the unit:

(A) is not a CAIR SO, unit undersection 1 ofthis rule and is not covered by a retired unit exemption ttiat is in effect undersection 3ofthis rule; (B) is not covered by a retired unit exemption that is in effect under40 CFR 72.8'; (C) is not and, so long as the unit is a CAIR S02 opt-in unit, shall not become, an opt-in source under40 CFR 74'; (D) vents all ofits S02 emissions to a stack; and (E) has documented neat inputfor more than eight hundred seventy-six (876) hours during the six (6) months immediately preceding submission ofthe CAIR permit application undersection 7(c) ofthis rule. (3) A monitoring plan in accordance with section 10ofthis rule. (4.) A complete certificate of representation under section 6(h) ofthis I'ule consistent with subsection (d), ifno CAIR designated representative has been previously designated forthe source that includes the unit. (5) A statement, in aformat specified by the department, whetllerthe CAIR designated representative requests that the unit be allocated CAIR SO. allowances undersubsection U)(3) or (j)(4), subject to the conditions in subsections (f)(10) and (h)(8). allocation undersubsection (j)(4) is requested, this statement shall include a statementthat the owners and operators ofthe unit intend to repower the unit before January 1, 2015, and that they will provide, upon request, documentation demonstrating such intent.

. The CAIR designated representative ofa CAIR SO, opt·in unit shall submit acomplete CAIR permit application undel" section 7(c) ofthis rule to renew the CAIR 

### opl-in unit permit in accordance with the departn1ent's regulations for Part 70 operating permits. Unless the department issues a notification ofacceptance ofwithdrawal ofthe CAIR S02.opt-in unil from the CAIR S02 trading program in accordance with subsection (h) orthe unit becomes a CAlK SO unit undersection 1 ofthis rule, the CAIR S02 opt-in unit shall remain subjectto the requirements for a CAIR SO opt-in unit, even ifthe CAIR designatea representative forthe CAIR SO opt-in unit fails to submit a CAIR permitapplication that is required for renewal ofthe CAIR opt-in permit. 2

(f) The department shall issue ordeny a CAIR opt-in permit for a unit for which an initial application for aCAIR opt-in permit under subsection (e) is submitted in accordance with the following: (1) The department and the U.S. EPAwill determine, on an interim basis, the sufficiency ofthe 1l10nitoring plan accompanying the initial application for a CAIR opt-in permit undersubsection (e). A monitorinfj plan is sufficient, for purposes of interim review, ifthe plan appears to contain information demonstrating 

### Blat the SO emissions rate and heat input and all other applicable parameters of Ihe unit and all otherappllcal)le 2 parameters are monitored and reported in accordance '.'lith section 10 ofthis rule. /\determir:ation of sufficiency shall not be construed as acceptance orapproval ofthe monitoring plan. (2) Ifthe departmenl and the U.S. EPA delermine that the monitorinfj plan is sufficient under subdivision (1), the owneroroperatorshall monitorand report the S02 emissions rate and the heat input ofthe unit and all otherapplicable parameters, in accordance with section 10 ofthis rule, starting on the date of certification of the appmpriate monitoring systems undersection 10 ofthis rule and continuing until a CAIR**opt~in** permit is denied under subdivision (8) or, ifa CAIR opt-in permit is issued, the date and time when the unit is withdrawn

D,lle: May 29,2008 8:03:53Aiv1 Em DIN: 20080528·IR-3260B0005PI:;:A PilQC 41

### Indiana Register
from the CAIR 

### S02trading program in accordance with subsection (h). (3) The monitoring and reporting undersubdivision (2) shall include the entire control period immediately before the date on which the unitenters the CAIR 

### SO trading program undersubdivision (9), during which period monitoring system availability must not be

## less~han ninety percent (90%) undersection 10ofthis rule and the unit must be in full compliance with anyapplicable state orfederal emissions oremissions-related requirements. (4) To the extentthe 

### SO emissions rate and the heat inputofthe unit are monitored and reported in accordance with section2

### 10 ofthis rule for one (1) or more control periods, in addition to the control period undersubdivision (3), during which control periods monitoring system availability is not less than ninety percent (90%) undersection 10ofthis rule and the unit is in full compliance with any applicable state or federal emissions oremissions-related requirements and which control periods begin not more than three (3) years before the unit enters the CAIR 

### SO?, trading program under subdivision (9), such information shall be used as provided in subdivisions (5) and t6). (5) The unit's baseline heat inputshall equal:

(A) ifthe unit's 

### S02 emissions rate and heat inputare monitored and reported for onlyone (1) control period, in accordance with subdivisions (2) and (3), the unit's total heat input, in million British thermal units (MMBtu), forthe control period; or (B) ifthe unit's 

### S02 emissions rate and heat input are monitored and reported for more than one (1) control period, in accordance with subdivisions (2) through (4), the average ofthe amounts ofthe unit's total heat input, in million British thermal units (MMBtu), forthe control periods undersubdivisions (3) and (4). (6) The unit's baseline 

### S02 emission rate shall equal one (1) ofthe following:

(A) Ifthe unit's 

### S02 emissions rate and heat inputare monitored and reported for onlyone (1) control period, in accordance with subdivisions (2) and (3), the unit's 

### S02 emissions rate, in pounds per million British thermal units (lb/MMBtu), forthe control period.

. (B) Ifthe unit's 

### S02 emissions rate and heat input are monitored and reported for more than one (1) control period, in accordance with subdivisions (2) through (4), and the unit does not have add-on 

### S02 emission controls during any such control periods, the average ofthe amounts ofthe unit's 

### SO emissions rate, in pounds per million British thermal units (lb/MMBtu), forthe control periods undersubdivisions (3) and (4). (C) Ifthe unit's 

### S02 emissions rate and heat inputare monitored and reported for more than one control period, in accordance with subdivisions (2) through (4), and the unit has add-on 

### S02 emission controls during any such control periods, the average ofthe amounts ofthe unit's 802 

### emissIons rate, in pounds per 

### million British thermal units (lb/MMBtu), for such control periods during which·the unit has add-on 

### S02 emission controls. (7) Aftercalculating the baseline heat input and the baseline 

### S02 emissions rate for the unit under subdivisions (5) and (6) and ifthe department determinesthatthe CAIR designated representative shows that the unit meets the requirements fora CAIR 

### S02 opt-in unit in subsection (a) and meets the elements certified in subsection (e)(2), the departmentshall issue·a CAIR opt-in permit. The department shall provide acopy of the CAIR opt-in permitto the U.S. EPA, who will then establish a compliance accountforthe source that includes the CAIR 

### SO opt-in unit unless the source already has acompliance account. (8) Notwithstanding su'bdivisions (1) through (7), ifat anytime before issuance ofa CAIR opt-in permitforthe unit, the departmentdetermines thatthe CAIR designated representative fails to showthatthe unit meets the requirements for a CAIR opt-in unit in subsection (a) 01· 

### meets the elements certified in subsection (e)(2), the departmentshall issue adenial ofa CAIR 

### S02 opt-in permitforthe unit. (9) A unit forwhich an initial CAIR opt-in permit is issued bythe department sllall become a CAIR 

### S02 opt-in unit, and a CAIR 

### SO unit, as ofthe laterofJanuary 1,2010, orJanuary 1 ofthe first control period during wllicll such CAIR opCCin permit is issued. (10) Ifthe CAIR clesiflnated representative requests, and the department issues a CAIR opt-in permit providing for, allocation to a CAIR 

### SO, opt-in unitof CAIR 

### SO allowances undersubsection (j)(4) and sucll unit is repowered afler its date of entry intothe CAIR 

### S02frading program under subdivision (9), the repowered unit shall be treated as aCAIR 

### SO, opt-in unit replacing the original CAIR 

### S02 opt-in unit, as ofthe date ofstart-up ofthe repowered unit's combustion chamber, Notwithstanding subdivisions (5) and (6), as ofthe date ofstart-up undersubdivision (10), the repowered unit shall be deemed to have the same dale ofcommencement ofoperation, date ofcommencement ofcommercia! operation, baseline heat input, and baseline 502 emission rate as the original CAIR 80.(.' opt-in unit, and the original CAIF< S02 opt-in unit shall no longer be treated as a CAIF<. 802 opt-in unl! or a CAIR 802 unit.



### (g) The following shall applyto tile content of each CAIR opt-in permit: (1) Each opt-in permit shall contain the following:



### (A) All elements required fm a complete CAIR permit application undersection 7(c) ofthis rule. (B) The certification in subsection (e)(2).

Dale Ivl,:lY 29.2008 8:0353AM Em DIN' 2U080528-1f-\-326080005Pf-<'A PaQe 42

### Indiana Register (C) The unit's baseline heat input undersubsection (f)(S). (D) The unit's baseline S02 emission rate undersubsection (f)(6). (E) Astatementwhetherthe unit is to be allocated CAIR S02 allowances undersubsection U)(3) 

### or U)(4), subjectto the conditions in subsections (f)(1 0) and (h)(8). (F) Astatementthat the unit maywithdrawfrom the CAIR S02 trading program only In accordance with subsection (h). (G) Astatementthat the unit is subject to, and the owners and operators ofthe unit must complywith, the requirements of subsection (i). (2) Each CAIR opt-in permit is deemed to incorporate automatically the definitions ofterms under section 2 of this rule and, upon recordation bythe U.S. EPA underthis section and sections 8 and 9 ofthis rule, every allocation, transfer, ordeduction of CAIR S02 allowances to orfrom the compliance account ofthe source that includes a CAIR SO, opt-in unit covered by tlie CAIR opt-in permit. (3) The CAIR opt-in permit shall be included, in aformat specified bythe department, in the CAIR permitfor the sources where the CAIR S02 opt-in is located and in a Part 70 operating permit or FESOP.

(h) The following requirements must be satisfied in order to withdraw an opt-in unitfrom tile CAIR S02 trading program: (1) Except as provided undersubdivision (8), a CAIR S02 opt-in unit maywithdrawfrom the CAIR SO trading program, but only ifthe department issues a notilication to the CAIR designated representative ofthe tAIR S02 opt-in unitofthe acceptance ofthe withdrawal ofthe CAIR S02 opt-in unit in accordance with subdivision (6)

.. (2) In orderto withdraw a CAIR S02 opt-in unit from the CAIR S02 trading program, the CAIR designated representative ofthe CAfR SO, opt-in unitshall submit to the departmenta request to withdraw effective as of midnight of December31 of aspecified calendaryear, which date must be at leastfour (4) years after December 31 ofthe yearofentry into the CAIR S02 trading program undersubsection (f)(9). The request must be submitted not laterthan ninety (90) days before the requested effective date ofwithdrawal. (3) Before a CAIR SO, opt-in unit covered by a request undersubdivision (1) maywithdrawfrom the CAIR S02trading program and the CAIR opt-in permit may be terminated undersubdivision (7), the following conditions must be met:



### (A) Forthe control period ending on the date on which the withdrawal is to be effective, the source that includes the CAIR S02 opt-in unit must meetthe requirement to hotd CAIR S02 allowances undersection 4(c) ofthis rule and cannot have any excess emissions.

. (B) After the requirement for withdrawal underclause (A) is met, the U.S. EPAwill deductfrom tile compliance account ofthe source that includes the CAIR SO opt-in unit CAIR SO. allowances equal in amountto and allocated forthe same ora priorcontrol perioJas any CAIR S02 aliSwances allocated to the CAIR SO, opt-in unit under subsection 

### (j) for any control period for which the Withdrawal is to be effective. If there are no remaining CAIR**SO~** 

### units at the source, the U.S. EPAwill close the compilance account, and the owners and operators ofthe cAIR S02 opt-in unit may submit a CAIR SO allowance transferfor any remaining CAIR S02 allowances to anotherCAIR S02 allowance tracking sysfem in accordance with section 9 ofthis rule.

- (4) Afterthe requirements for withdrawal undersubdivisions (2) and (3) are met, including deduction ofthe full amountof CAIR S02 allowances required, the departmentshall issue a notification to the CAIR designated representative ofthe-CAIR S0i' opt-in unit ofthe acceptance ofthe withdrawal ofthe CAIR SO opt-in unit as of midnight on December31 a the calendar year for which the withdrawal was requested. 2 (5) Ifthe requirements forwithdrawal under subdivisions (2) and (3) are not met, the department shall issue a notification to the CAIR designated representative ofthe CAIR SO, opt-in unitthat the CAIR SO, opt-in unit's request to withdraw is denied, Such CAIR 802 opt-in unit shall 

### conlinue to be a CAIR SO opt-in unit. (6) After the department issues anotification u"nder subdivision (4) that the requirements ttr withdrawal have 

### been met, the department shall revise the CAIR pennil covering the CAIR S02opt-in unit to terminate the CAIR opt-in permit for such unit as ofthe effective date specified undersubdiVision (4). The unit shall continue to be a CAlF< S02 opt-in unit until the effective date ofthe termination and shall comply with all requirements underthe CAIR ::;02 trading program concerning any conlrol periods forwhich the unit is a CAIR SO, opt-in unit, even 

### ifsuch requirements arise or must be complied with afterthe withdrawal takes effect. 2 

### (7) Iftile deparlmentdenies the CAIR SO, opt-in unil's request to withdraw, the CAIR designated representative may submit another requesllo wilhdraw in accordclilce with subdivisions (2) and (3). 

### (8) Notwithstanding subdivisions (1) through (7), a CAIR S02 opt-in unitshall not be eligible to withdraw from the CAIR S02 trading program ifthe CAIR designated representative oftile CAIR SO opt-in unit requests, and the departrnent issues a CAIR 802 Opl-Ill permit

## providin~J for, allocation to the

## C~IR SO, opt-in unit of 

### CAIR SO, allowances under subsection (j)(4). 2 (g) Once

# a**CAII~** 

### S02 opt-in unitwithdraws from the CAIR SO, tladin,) program and its CAIR opt-in penni! is

Date: May29,2008 8:03:53AM Em DIN'**2008052g·II~·32(jOB0005PI:';'!\** Page '13Indiana Register
terminated underthis section, the CAIR designated representative may not submit anotherapplication for a CAIR opt-in permit undersubsection (e) for such CAIR SO, opt-in unit before the date that is four (4) years afterthe date on which the withdrawal became effective. Such new application for a CAIR opt-in permit shall be treated as an initial application for a CAIR opt-in permit under subsection (f).

(i) When aCAIR S02 opt-in unit becomes a CAIR SO unit under section 1 ofthis rule, then the CAIR designated representative shall notify in writing tile depar1ment and the U.S. EPA01 SUCll change in the

## CAlr~ S02 opt-in unit's regulalorystatus, within thirty (30) days ofsuch change. Ifthere is a change in the regulatory status, the department and the U.S. EPAwill take the following actions concerning Ihe CAIR SO, opt-in source: (1) When the CAIR SO, opt-in unit becomes a CAIR SO, unit undersection 1 ofthis rule, the department shall revise the CAIR S02 opt-in unit's CAIR opt-in permit to meet the requirements of a CAIR permit undersection 7(d) and (7)(e) of Ih,s rule, and remove Ihe CAIR opt-in provisions, as ofthe date on which the CAIR S02 opt-in unit becomes a CAIR SO, unit undersection 1 ofthis rule.

. (2) The U.S. EPAwill deduct from the compliance account ofthe source that includes the CAIR SO, opt-in unit that becomes a CAIR SO, unit undersection 1 ofthis rule, CAIR S02 allowances equal in amount to and allocated fortile same or a prior control period as follows: (A) Any CAIR SO. allowances allocated to the CAIR SO, opt-in unit undersubseclion (j) fm any control period afterthe d§te on which the CAIR SO, opt-in unit oecomes a CAIR SO, unit undersection 1 ofthis rule. (B) Ifthe date on which the CAIR SO, opt-in unit becomes a CAIR SO, unit underseclion 1 ofthis rule is not December31, the CAIR SO allowances allocated to the CAIR SO, opt-in unit under subsection (j) for the control period Ihat includes (he date on which the CAIR S02 opt-in unit becomes a CAIR S02 unit under section 1 ofthis rule, multiplied bythe ratio ofthe numberofdays, in Ihe control period, starting with the date on which the CAIR SO, opt-in unit becomes a CAIR SO, unit undersection 1 ofthis rule divided bythe total numberofdays in the control period and rounded to the nearestwhole allowance as appropriate. (3) The CAIR designated representative shall ensure that the compliance account ofthe source that includes the CAIR S02 opt-in unitthat becomes a CAIR SO, unit undersection 1 ofthis rule contains the CAIR SO, allowances necessaryfor completion oftile deduction undersubdivision (2).



## OJ The department shall allocate CAIR SO, allowances to CAIR SO, opt-in sources as follows: (1) When the CAIR opt-in permit is issued undersubsection (f)(7), tne department shall allocate CAIR SO, allowances to the CAIR S02 opt-in unit, and submit to the U.S. EPAthe allocation for the control period in which a CAIR SO api-in unit enlers the CAIR S02 trading program undersubsection (f)(9), in accordance with subdivision

## (3) or (4).

. (2) By not laterthan October31 of Ihe control period in which a CAIR SO, opt-in unit enters the CAIR SO, trading program undersubsection (f)(9) and October31 

### ofeach year thereafter, the departmenl shall allocate CAIR S02 allowances to the CAIR SO opt-in unit, and submit to the U.S. EPA the allocation for the control period that includes such submission cfeadline and in which the unit is a CAIR SO, opt-in unit, in accordance with subdivision (3) or (4). (3) For each conlrol period for which a CAIR S02 opt-in unit is to be allocated CAIR S02 allowances, Ihe department shall allocate in accordance with the 'following procedures:

. (A) The heat input, in million British thermal units (MMBtu), used for calculating the CAIR SO, allowance allocation shall be the lesserofthe following:

(i) The CAIR SO opt-in unil's baseline heat input determined undersubsection (f)(5). (ii) The CAIR

## SO~ opt-in unit's heat input, as determined in accordance with section 

### 10 ofthis rule, forthe immediately prior"control period. exceptwhen the allocation is being calculated for the control period in which the CAIR SO, opt-in unit enters the CAIR S02 trading program under subsection (1)(9). (B) The S02 emissiolll'ate, in million British thermal units (MMBtu), used forcalCUlating CAIR SO, allowance allocalions shall be Ihe lesserofthe following:

.

(i) The CAIR SO. opt-in unit's baseline SO_ emissions rale, in pounds per million British thermal units (lb/MMBlu), dete1mined under subsection

### ~)(6) and multiplied by seventy percent (70%). (ii) The most stringent state or federal SO, emissions limitation applicable to the**CAIF~** SO, opt-in unit al any lime during tl1e control period for whicn CAIR SO, allowances are 10 be allocated. (C) The department shall allocate CAIR SO., allowances to the CAIR SO., opt-in unitin-an with atonnage equivalent equal to, Or less than by the smallest possible amount, e4wJiAg the heat input under clause (A), multiplied bythe SO, emission rate under clause (B), divided bytwo thousand (2,000) pounds perton, and rounded to the nearestwhole allowance as appropriate. (4) Notwithstandin[J subdiVision (3) and ifthe CAlF, designaled representative requests, and the deparlmenl issues a

### CA1R opt-in permit {based on a demonstration ofthe intentto repower stated undersubsection (e)(5)) providing for, allocation 10 a CAIR S02 opt-in unit ofCAIR S02 allowances under Ihis subdivision,

Dale: May 29,2008 8:03:53AM EDT DIN: 20080528·IF<·326080005Pf--<A Page 11t.jIndiana Register sUbjectto the conditions in subsections (f)(10) and (h), the department shall allocate to the CAIR SO, opt-in unit as follows:

(A) Foreach control period in 2010 through 2014 forwhich the CAIR SO, opt-in unit is to be allocated CAIR SO allowances as follows:

-

(i)'rhe heat input, in million British thermal units (MMBtu), used for calculating CAIR SO, allowance allocations shall be determined as described in subdivision (3)(A). (ii) The SO, emission rate, in pounds per million British thermal units (lbIMMBtu), used for calculating CAIR SO allowance allocations shall be the lesserof:

## (~) the CAIR SO, api-in unit's baseline

# sal emissions rate, in pounds per million British thermal units

(lbIMMBtu), determined undersubsection (f)16): or (BB) the most stringent state orfederal SO emissions limitation applicable to the CAIR S02 opt-in unit at any time during the control period in which 'the CAIR SO, opt-in unit enters the CAIR SO, trading program undersubsection (f)(9). (iii) The department shall allocate CAIR SO, allowances to the CAIR S02 opt-in unitifl-Bfl with atonnage equivalent equal to, or less than bythe smallest possible amount, equaling the heat input under item (i), multiplied bythe SO, emission rate under item (ii), divided by two thousand (2,000) pounds perton, and rounded to the nearestwhole allowance as appropriate. (B) Foreach control period in 2015 and thereafterfor which the CAIR SO, opt-in unit is to be allocated CAIR SO allowances as follows:

(i)'rhe heat input, in million British thermal units (MMBtu), used for calculating the CAIR SO, allowance allocations shall be determined as described in subdivision (3)(A). (ii) The SO, emission rate, in pounds per million British thermal units (lbIMMBtu), used for calculating the CAIR SO, allowance allocation shall be the lesserof:

(AA) the CAIR SO, opt-in unit's baseline SO,x emissions rate, in pounds per million British thermal units (lbIMMBtu), determined undersubsection (f)(6) multiplied byten percent (10%): or (BB) the most stringent state orfederal SO emissions limitation applicable to the CAIR S02 opt-in unit at any time during the control period forwhich'CAIR SO, allowances are to be allocated_ (iii) The department shall allocate CAIR SO, allowances to the CAIR S0i;-,0pt-in unit in an amount equaling the heat input item (i), multiplied bythe SO, emission rate underclause Itl)(ii), divided bytwo thousand (2,000) pounds perton, and rounded to the nearestwhole allowance as appropriate. (5) The U.S_ EPAwill record, in the compliance account oftl1e source that includes the CAIR SO, opt-in unit, the CAIR SO, allowances aliocated bythe departmentto the CAIR SO, opt-in unit undersubdivision (1). (6) By December 1 ofthe control period in which a CAIR SO opt-in unit enters the CAIR SO trading program undersubsection (f)(9) and December 1 of each year thereaner, the U.S. EPAwill record, in 'the compliance account ofthe source that includes the CAIR S02 opt-in unit, the CAIR S02 allowances allocated by the department to the CAIR SO, opt-in unit underSUbdivision (2)_
'These documents are incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitot Street NW, Washington, D.C. 20401 orare available for review and copying atthe tndiana Department of Environmental Management, Office ofAir Quality, Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204. 

### (AirPollution ControlBoard; 326 

### lAC24-2-11: 

### filedJan 26, 

### 2007, 10:25

### a.nL 20070221-IR-326050117FRA; errata liledJan 29, 

### 2007, 243

### p.m.:20070221::IR-32605Q11ZAcl1J

SECTION 10. 32QJ6c"2A:3:1IS AMENDED TO READ AS FOLLOWS:

}26 IAC_2.'!.:_3:1 Applicability Authority: 

### LG1:J:H:!l: IGJJ·l1·3·4; )<;

__ 

## 11:17-3-11 Affected:**Lc_n:l~:** 

## Ie 13·J7

Sec. 1. (a) TI1is rule establishes a NO ozone season ernissions budget and NO trading program for fossil-fuel-fired generating units and large"affected units as described in this rule. TI{e following units shall be CAlK NO ozone season units, and any source that includes one (1) m more such units shaH be a CAIR NO

ozone season source, and shall be subject to the requirements ofthis rule, except as provided in subsection\b): (1) Any stationary, fossil-fuel-fired boileror stationary, fossil-fuel-fired combustion turbine serving 

### atany time, since the laterof November 15, 1990 orthe start-up of

### lhe unit's combustion chamber. a generatorwith IlcHlleplate capacity of mom than twenty-five (25) rnegawatt electrical producing electricityfor sale. (2) Any large affected unil as defined in section 2attl1is rule

Dale May 29,2008 8:03SlAM Em DIN:**20()a0528"11~·326080005f:lI:':'/~**Indiana Register (3) Ifastationary boilerorstationary combustion turbine that, undersubdivision (1), is not a CAIR NO ozone

season unit begins to combust fossil fuel orto serve a generatorwith nameplate capacity of more thaA twenty-five (25) megawatt electrical producing electricityfor sale, the unit shall become a CAIR NO ozone

season unit as provided in subdivision (1) on the first date on which it both combusts fossil fuel and'serves such generator.

(b) Units tllat meet the requirements set forth in subdivision (1), (2), or (3) shall not be CAIR NO ozone
season units undersubsection (a)(1) or (a)(3) as follows: ' (1) Any unit that is aCAtR NO ozone season unit undersubseclion 

### fa) (a)(1) or (a)(3):

(A) qualifying as acogeneralion unit during the twelve (12) month period starting on the date the unitfirst produces electricity and continuing to qualifyas a cogeneration unit; and (B) not serving atany time, since the laterof November 15, 1990, orthe start-up ofthe unit's combustion chamber, ageneratorwith nameplate capacity of more than twenty-five (25) megawall electrical supplying in any catendaryear more than one-third 

### (1/3) ofthe unit's potential electric output capacity ortwo hundred nineteen thousand (219,000) megawatt 110urs, whichever is greater, to any utility powerdistribution system for sale. Ifa unit qualifies as 

### acogeneration unit during tile twelve (12) month period starting on the date the unit first produces electricity and meets the requirements ofthis subdivision for at least one (1) calendaryear, but subsequently no longer meets all SUCll requirements, the unit sllall become a CAIR NO ozone season unit starting on the earlierofJanuary 1 afterthe first calendaryearduring which the unit no longerqualifies as a cogeneration unit orJanuary 

### 1 after the first calendaryear during which the unit no longer meets the requirements ofclause (B). (2) Any unitthat is aCAIR NO ozone season unit undersubsection 

### fa) (a)(1) or (a)(3) commencing operation


# , before January 1, 1985:

(A) qualifying as asolid waste incineration unit; and (B) with an average annual fuel consumption of nonfossil fuel for 1985-1987 exceeding eighty percent (80%), on a British thermal units basis, and an average annual fuel consumption of nonfossil fuel for any three (3) consecutive calendaryears after 1990 exceeding eighty percent (80%), on a British thermal units basis. (3) Any unit tllat is aCAIR NO ozone season unit undersubsection 

### fa) (a)(1) or (a)(3) commencing operation


# , on or afterJanuary 1, 1985: (A) qualifying as asolid waste incineration unit; and (B) with an average annual fuel consumption of nonfossil fuel for the first three (3) calendaryears of operation exceeding eighty percent (80%), on a British thermal units basis, and an average annual fuel consumption of nonfossil fuel for anythree (3) consecutive calendaryears after 1990exceeding eighty percent (80%), on a British thermal units basis. (4) Ifthe unit qualifies as a solid waste incineration unit and meets the requirements ofsubdivision (2) or (3) for at least tl1ree (3) consecutive calendaryears, but subsequently no longer meets all such requirements, the unit sl1all become a CAIR NO ozone season unit starting on the earlierofJanuary 

### 1 afterthe first calendar year during which the unitfirstno longerqualifies as a solid waste incineration unit orJanuary 1 afterthe first three (3) consecutive calendaryears after 1990 forwhich the unit has an average allnual fuel consumption of fossil fuel oftwenty percent (20%) or more. 

### (AirPollution ControlBoard; 326 lAC 24-3-1; 

### filedJan 26, 

### 2007, 10:25a.m.. 

### 20070221-IR-326050117FRAI

SECTION 11. 32.6.JAC_24c3_:2 IS AMENDED TO READ AS FOLLOWS

32§ lAC 24·3:2 Definitions Authority: !,t:;J:l·14,!!; !Lll-JZ::l:4; 

## LG_.n·17-3.:

. .11 Affected: !Q.J3-JJ..:l;**!.c..1l:J~;** 

### !GJ3-11

Sec. 2. For

### purpose~ 'ofthis rule, the definition given for a term in this rule shall control in any conflict between 326 lAC 1-2 and this ruie. In addition to the definitions prOVided inlC 13-11-2 and 326 lAC 1-2, the foHowing definitions apply througll0ut this rule, unless expressly stated otherwise or unless the context clearly implies otherwise: (1) "Account number" means the identification numbm given 

### by the U.S. EPA to each CAIR NO ozone



### . 

# , season allowance tracking system account. (2) "Acid rain emissions limitation" means a limitation on emissions of sulfurdioxide or nitrogen oxides under

Dale May 29,2008 8:03'53AfVl Em DIN:**200805213-lr~-326080005PF<A**Indiana Register
the acid rain program. (3) "Acid rain program" means a multistate sulfurdioxide and nitrogen oxides air pollution control and emission reduction program established bythe U.S. EPA underTitle IVofthe Clean AirAct and 

### 40 CFR Parts 

### 72 through 

### 40 CFR 78'. (4) "Allocate" or "allocation" means, with regard to CAIR NO ozone season allowances, the determination by

a permitting authority orthe U.S. EPAofthe amount ofsuch'CAIR NO ozone season allowances to be initially credited to a CAIR NO ozone season unit, a new unit set-aside, an 

### enXergy efficiency or renewable energy set-aside, orotherentily. (5) "Allowance transfer deadline" means, for acontrol period, midnight of November 

### 30 (if It is a business day),

or midnight ofthe first business daythereafter (if November

### 30 is not abusiness day), immediatelyfollowing the control period and is the deadline bywhich a CAIR NO ozone season allowance transfer must be submitted for recordation in a CAIR NOxsource's compliance account in orderto be used to meetthe source's CAIR NO ozone season emissions limitation for such control period in accordance with sections 9(i) and 9(j) ofthis

### rUI~. (6) "Alternate CAIR designated representative" means, for aCAIR NO ozone season source and each CAIR NO ozone season unit atthe source, the natural person who is authoAzed by the owners and operators ofthe

### sou~ce and all such units atthe source in accordance with sections 6 and 12 ofthis rule, to act on behalf ofthe CAIR designated representative in matters pertaining to the CAIR NO ozone season trading program. Ifthe CAIR NO ozone season source is also a CAIR NO source, then tllis'natural person shall be the same person
as the

### alt~rnate CAIR designated representative

### un~er the CAIR NO annual trading program. Ifthe CAIR NO

ozone season source is also a CAIR S02 source, then this natural p€rsonshall be the same person as the ' alternate CAIR designated representative underthe CAIR SO, trading program. Ifthe CAIR NO ozone
season source is also SUbjectto the acid rain program, then this natural person shall be the sarrfe person as the alternate designated representative underthe acid rain program. Ifthe CAIR NO ozone season source is also subject to the mercury budgettrading program, then this natural person shall be'the same person as the alternate mercurydesignated representative underthe mercury budgettrading program. (7) "Automated data acquisition and handling system" or "DAHS" means that component ofthe continuous emission monitoring system, orother emissions monitoring system approved for use undersection 11 oftllis rule, designed to interpretand convert individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and othercomponent parts ofthe monitoring system to produce a continuous record ofthe measured parameters in the measurement units required by section 11 ofthis rule. (8) "Biomass" means any ofthe following:

(A) Organic material grown for the purpose of being converted to energy. 

### (8) Organic byproduct of agriculture that can be converted into energy. (C) Material that:

(I) can be converted into energy and Is nonmerchantabie for other purposes; (ii) is segregated from other nonmerchantable material; and (iii) is:

(AA) aforest-related organic residue, including mill residues, precommercial thinnings, slash, brush, or byproduct from conversion oftrees to merchantable material; or 

### (88) a wood material, including pallets, crates, dunnage, manufacturing and construction materials (otherthan pressure-treated, Chemically-treated, or painted wood products), and landscape or right-of-way trimmings. 

## f&l (9) "Boiler" means an enclosed fossil- arother-fuel-fired combustion device used to produce heat and 

### ta transfer heatto recirculating water, steam, orother medium. 

## t91 (10) "Bottoming-cycle cogeneration unit" means a cogeneration unit in which the energy input to the unil is first used to produce useful thermal energy and at least some ofthe reject heat from the useful thermal energy application or process is then used for electricity production. 

## tw1 (11) "CAIR authorized account representative" means, with regard to a general account, a responsible natural person who is authorized, in accordance with sections 6, g, and 12 ofthis rule, to transfer and otherwise dispose of CAIR NO ozone season allowances held in the general account and, with regard to a campliance account, the CAIR'designated representative ofthe source. 

### \4+J (12) "CAli, designated representative" means, for a CAIR NO ozone season source and each CAIR NO

ozone season unit at the source, the natural person who is

### authori~ed by the owners and operators ofthe x source and all such units atthe source, in accordance with sections 6 and 12 ofthis rule, to represent and legally bind each ownerand operator in mailers perlaining to Ille CAIR NO ozone season trading program. If the CAIR NO ozone season source is also a CAIR NO source, then this ,.fatural person shall be the same person as tl1e'CAIR designated representative under th'i, CAIR NO annual trading program. Ifthe CAIR NO

. . x x ozone season source IS also a CAIR SO;? source, Olen thIS natural person shall be the same person as the CAIR designated representative under tile CAIR SO. Irading program. Ifthe CAIR NO ozone season source is also subjectto the acid rain program, then this natDral person shall be tile same perjon as the designated

D;:lle:**M~lY** 2S1,200e 8:0353AM EDT DIN: 2008052H·II-<.·326U80005f:Jf-<.A Page 4'1Indiana Register representative underthe acid rain program. Ifthe CAIR NO ozone season source is also sUbjectto the mercury budgettrading program, then this natural person sRal1 be the same person as the mercurydesignated representative underthe mercury budgettrading program. 

### f4.;,j (13) "CAIR NO annual trading program" means a multistate nitrogen oxides air pollution control and emission reduction program approved and administered by the U.S. EPA in accordance with 326 lAC 24-1; 40 CFR 96, Subparts AA through 

### II'and 40 CFR 51.123' 40 CFR 51.123(0)(1) or40 CFR 51.123(0)(2)', or established by Ihe U.S EPA in accordance with 40 CFR 97, Subparts AA through 

### II'and 40 CFR 51.123(p)' and 40 CFR 52.35', as ameans ofmitigating interstate transport offine particulates and nitrogen oxides. 

## t+3J (14) "CAIR NO ozone season allowance" means a limited authorization issued by a permiltin9 aUlhorily

orthe U.S. EPA under provisions ofastate implementation plan that are approved under40 CFR 51123(aa)(1) or40 CFR 51123(aa)(2), and 40 CFR 51.123(bb)(1), 40 CFR 51123(bb)(2), 40 CFR 51.123(dd), or40 CFR 51123(ee)', or under40 CFR 97'. to emit one (1) ton ofnitrogen oxides during a control period ofthe specified calendaryearforwhich the authorization is allocated orofany calendaryear thereafter underthe CAIR NO ozone season trading program ora limited authorization issued by a permitting authority for a control period dtring 2003 through 2009 underthe NO budgettrading program in accordance with 40 CFR 51.121 (p)' or 326 lAC 10-4 to emit one (1) ton ofnitrogen oxides during acontrol period, provided that the provision in 40 CFR 51.121(b)(2)(ii)(E)' shall not be used in applying this definition and the limited authorization shall not Ilave been used to meetthe allowance-holding requirement underthe NO budgettrading program. An authorization to emit nitrogen oxides that is not issued underprovisions ofa'state implementation plan approved under40 CFR 51.121 (p)' or40 CFR 51.123(aa)(1) or40 CFR 51.123(aa)(2), and 40 CFR 51.123(bb)(1), 40 CFR 51.123(bb)(2), 40 CFR 51123(dd), or40 CFR 51.123(ee)', or under40 CFR 97' shall not be a CAIR NO ozone season allowance. (+4) (15) "CAIR NO ozone seas6n allowance deduction" or "deduct CAIR NO ozone season allowances"

means the perman€ntwithdrawal ofCAIR NO ozone season allowances bytRe U.S. EPAfrom a compliance account, forexample, in orderto account for a\pecified numberoftons oftotal nitrogen oxides emissions from all CAIR NO ozone season units at a CAIR NO ozone season source for acontrol period, determined in accordance with 

### tectian 11 ofthis rule, orto 

### account1or excess emissions. (+§J (16) "CAIR NO ozone season allowances held" or "hold CAIR NO ozone season allowances" means the CAIR NO ozone s€asonallowances recorded by the U.S. EPA, orsubfnitted to the U.S. EPAfor recordation, in accordlince with sections g, 10, and 12 ofthis rule, in a CAIR NO ozone season allowance tracking system 

# , account. 

## f+6J (17) "CAIR NO ozone season allowance tracking system" means the system bywhich the U.S. EPA records allocations.'deductlons, and transfers ofCAIR NO ozone season allowances underthe CAIR NO

ozone season trading program. Such allowances will be alfocated, held, deducted, ortransferred only as ' whole allowances. 

## t+f.J (18) "CAIR NO ozone season allowance tracking system accounl" means an account in the CAIR NO

ozone season allow'ance tracking system established by the U.S. EPAfor purposes of recording the allocatIon, holding, transferring, ordeducting ofCAIR NO ozone season allowances. 

## f+6J (19) "CAIR NO ozone season emissionsnmitalion" means, fora CAIR NO ozone season source, the tonnage equivalent,Xin NO ernissions in a control period, ofthe CAIR NO ozon:e season allowances available for deduction for the

### sourc~ undersection 9(i) and 9(j)(1) ofthis rule forth'!, control period. 

### (+fJJ (20) "CAIR NO ozone season source" means a source that includes one (1) or more CAIR NO ozone season units. x x (21) "CAIR NO ozone season trading program" means a multistate nitrogen oxides air pollution control and emission reduclion program approved and administered bythe U.S. EPA in accordance with this rule; 40 CFR 96, Subparts AAAAthrough IIII' and 40 CFR 51123' 40 CFR 51.123(aa)(1) or40 CFR 51.123(aa)(2), and 40 CFR 51.123(bb)(1), 40 CFR 51.123(bb)(2), or40 CFR 51.123(dd)'; oreslablished by Ihe U.S. EPA in accordance with 40 CFR 97, Subparts AAAAthrough 1111' and 40 CFR 51.123(ee)' and 40 CFR 52.35', as a
means ofmitigating interstate transport of ozone and nitrogen oxides. 

### f2+1 (22) "CAIR NO ozone season unil" means a unit that is subjectto Ihe**CAIF~** NO ozone season trading program undersectIon 1 of Ihis rule and, and excepl forthe purposes of sections 3

### a~d 8 ofthis rule, a CAIR NO ozone season opt-in unit under section 12 ofthis rule. 

# f*2J' (23) "CAIR NO source" means asource that is subject to the CAIR NO annual trading program. 

### (-2;J.) (24)

### "CAIF~ perAlit" means tile legalty binding and federally enforceable

### ~rilten document, or portion of such document issued by the department undersection "1 of this rule. includino any permit revisions, specifying Ihe CAIR NO ozone season trading program requirements applicable to a CAIR NO, ozone
season source, to each CAIR NO ozone season unit at the source, and to the owners and operators and the CAIR designated representative 01 the source and each such unit. 

### (24) (25) "CAli, SO, source" means a source IIlat is subject to the CAlF, S02 tradin9 program. 

### f2-§-1 (26) "CAIR SO; trading program" means a rnultistatc sulfurdioxide air pollution control and emission reduction program approved and administered by the US. EPA In accordance With 326 lAC 24-2; 40 CFR 96,

Date: May 29,200H 8:0353/\M [1)"1 DIN·.**2U080528"11~··32G08000Spr~A** Page 48Indiana Register Subparts AM through III' and 40 CFR 51124' 40 CFR 51.124(0)(1) or40 CFR 51.124(0)(2)*; orestablished in accordance with 40 CFR 97. Subparts AM through III and 40 CFR 51.124(r)' and 40 CFR 52.36', as a
means ofmitigating interstate transport of fine particulates and sulfurdioxide. 

## R61 (27) "Coal" means any solid fuel classified as anthracite, bituminous, subbituminous, or lignite. 

### R+) (28) "Coal-derived fuel" means anyfuel, whether in a solid, liquid, or gaseous state, produced bythe mechanical, thermal, or chemical processing ofcoal. (29) "Coal-fired" means: (A) except for purposes of section 8 ofthis rule, combusting any amount of coal or coal-derived fuel, alone

or in combination with any amount ofany otherfuel, during anyyear; or (8) for purposes ofsection 8 ofthis rule, combusting any amount ofcoal or coal-derived fuel, alone or in combination with any amount ofany otherfuel, during a specified year. 

## R9J (30) "Cogeneration unit" means astationary, fossil-fuel-fired boilerorstationary, fossil-fuel-fired combustion turbine:

(A) having equipment used to produce electricity and useful thermal energyfor industrial, commercial, heating, or cooling purposes through the sequential use ofenergy; 

### afI4 (8) producing electricity during the twelve (12) month period starting on the date tho unit first produces electricity and during any calendaryear afterthe calendaryear in which the unit first produces electricity:

(i) for atopping-cycle cogeneration unit:

(AA) useful thermal energy not less than five percent (5%) oftotal energy output; and (88) useful powerthat, when added to one-half (y,) of useful thermal energy produced, is not less than forty-two and one-half percent (42.5%) oftotal enorgy input, if useful thermal energy produced is fifteen percent (15%) or more oftotal energy output, or not less than forty-five percent (45%) oftotaf energy input, if useful thermal energy produced is less than fifteen percent (15%) oftotal energy output; and (ii) for a bottoming-cycle cogeneration unit, useful power not less than forty-five percent (45%) oftotal energy input; and (C) provided that the total energy input under clause (8)(i)(BB) and (Bi(ii) shall equal the unit's total energy inputfrom all fuel except biomass ifthe unit is a boiler. 

## f3G1 (31) "Combustion turbine" means: (A) an enclosed device comprising a compressor, a combustor, and aturbine and in which the flue gas resulting from the combustion offuel in the combustor passes through the turbine, rotating the turbine; and (8) ifthe enclosed device underclause (A) is combined cycle, any associated duct bumer, heat recovery steam generatorand steam turbine. 

## f3+l (32) "Commence commercial operation" means, with regard to a unit serving a generator, the following: (A) To have begun to produce steam, gas, or other heated medium used to generate electricity for sale or use, including test generation, except as provided in sections 3 and 12(f)(10) ofthis rule, subject to the following:

(i) Fora unit that is aCAIR NO ozone season unit undersection 1 ofthis rule on the later of November 15, 1990, orthe date the unit comri\ences commercial operation as defined in this clause and that subsequently undergoes a physical change (otherthan replacement ofthe unit by a unit at the same source) such date shall remain the date ofcommencement ofcommercial operation ofthe unit, which shall continue to be treated as the same unit. (ii) Fora unit tllat is a CAtR NO ozone season unit undersection 1 ofthis rule on the laterof November 15, 1990, orthe date the unit c6mmences commercial operation as defined in Ihis clause and that is subsequently replaced by a unit at the same source (for example, repowered), such date shall remain the replaced unit's date ofcommencement ofcommercial operation, and the replacement unit shall be treated

as a separate unitwith a separate date for commencement ofcommercial operation as defined in this clause or clause (8) as appropriate. (8) Notwithstanding clause (A) and except as provided in section 3ofthis rule, for a unitthat is not a CAIR NO ozone season unit undersection 1 ofthis rule on the laterof November 15, 1990, or the date the unit cori1mences commercial operation as defined in clause (A), the unit's date for commencement of commercial operation shall be the date on which the unit becomes a CAIR NO ozone season unit under section 1 of this rule, SUbjectto the following: '



### (i) Fora unitwith a date for commencernent of commercial operation as defined in this clause and that subsequently undergoes a physical change, other than replacement ofthe unit by a unit at the same source, such date shall mmain the date of commencement of commercial operation ofthe unit, which shall continue to be treated as the same unit. (Ii) Fora unit with a date for commencement of commercial operation as defined in this clause and that is subsequently replaced by a unit at the same source (for example, repowered), such date shall remain the replaced unit's date of comlrlencement of commercial operation, and the replacement unit shall be treated

as a separate unitwith a separate date for commencement ofcommercial operation as defined in this clause or clause (A), as appropriate.

Dale: May29,2008 8:03:53AM ElYI DIN· 20080528·IH·32G080005Pf:<A Paw: 49Indiana Register (C) Notwithstanding clauses (A) and (B), for a unit not serving a generatorproducing electricity for sale, the unit's date ofcommencement ofoperation shall also be the unit's date ofcommencement ofcommercial operation. (33) "Commence operation" means the following: (A) To have begun any mechanical, chemical, orelectronic process, including, with regard to a unit, start-up ofa unit's combustion chamber, except as provided in section 12(f)(10) ofthis rule. (B) Fora unitthat undergoes a physical change (otherthan replacement ofthe unit by a unit at the same source) afterthe date the unit commences operation as defined in clause (A), such date shall remain the unit's date ofcommencement ofoperation ofthe unit, which shall continue to be treated as the same unit. (C) Fora unit that is replaced by a unit at tile same SOurce (forexample, repowered) aftertile date the unit

commences operation as defined in clause (A), such date shall remain the replaced unit's date of commencement, and the replacement unit shall be treated as a separate unitwith a separate date for commencement ofoperation as defined in this clause orclause (A) or (B), as appropriate, except as provided in section 12(f)(1 0) ofthis rule. (D) Notwithstanding clauses (A) through 

### (e), and solely for purposes of section 11 ofthis rule, for a unitthat is not a large affected unit under subdivision (51)(A) or (51)(B) on the laterof November 15, 1990, orthe date the unit commences operation as defined in clause (A) and that subsequently becomes a large affected unit undersubdivision (51)(A) or (51)(8), the unit's date for commencement ofoperation shall be the date on which the unit becomes a large affected unit under subdivision (51)(A) or (51)(8), (E) Fora unitwith a date ofcommencement of operation as defined in clause (D) and that subsequently undergoes a physical change, otherthan replacement ofthe unit by a unit atthe same 

### source, such date shall remain the date of commencement of operation ofthe unit, which shall continue to be treated as the same unit. (F) Fora unitwith a date for commencement of operation as defined in clause (D) and that is subsequently replaced by a unit atthe same source, for example, repowered, such date shall remain the replaced unit's date ofcommencement ofoperation, and the replacement unit shall be treated as


### a separate unitwith a separate date for commencement of operation as defined in this clause and clauses (A) through (E), as appropriate.

(34) "Common stack" means asingle flue through which emissions from two (2) or more units are exhausted. (35) "Compliance account" means a CAIR NO ozone season allowance tracking system account, established bythe U.S. EPAfor a CAIR NO ozone"season source undersection 9or 12 ofthis rule, in which any CAIR NO ozone season allowance 

### alioXcations forthe CAIR NO ozone season units at the source are initially

### record~d and in which are held any CAIR NO ozone season'allowances available for use for a control period in orderto meet the source's CAIR NO ozonexseason emissions limitation in accordance with section 9(i) and 9(j) of Ihis rule. ' 

### (3§1 (36) "Continuous emission monitoring system" or "CEMS" means the equipment required undersection 11 ofthis rule to sample, analyze, measure, and provide, by means of readings recorded at least once every fifteen (15) minutes, using an automated data acquisition and handling system (DAHS), a permanent record of nitrogen oxides emissions, stack gas volumetric flow rate, stack gas moisture content, and oxygen orcarbon dioxide concentration, as applicable, in a mannerconsistent with 40 CFR 75*. The following systems are the principal types ofcontinuous emission monitoring systems required under section 11 ofthis rule:

(A) Aflow monitoring system, consisting ofa stack flow rate monitorand an automated data acquisition and handling system and providing a permanent, continuous record ofstack gas volumetric flow rate, in standard cullic feet per hour (scfh). (8) A nitrogen oxides concentration monitoring system, consisting of a NO. ozone season pOllutant concentration monitorand an automated data acquisition and handling system and providing a permanent, continuous record of NO ozone season emissions, in parts per million (ppm). (C) A nitrogen oxides emlssion rate (or NO -diluent) monitoring system, consisting ofa NO ozone season pollutant concentration monitor, adiluent g§s (C02 or 02) monitor, and an automated data

### ~cquisition and handling system and providing a permanent, continuous'record of NO ozone season concentration, in parts per million (ppm), diluent gas concentration, in percent CO2or02; and NO ozone season emission rate, in pounds per million British thermal unils (11l/MMBtu).

., (0) A moisture monitoring system, as defined in 40 CFR 75.11 (b)(2)' and providing a permanent. continuous record ofthe stack gas moisture content, in percent H20. (E) A carbon dioxide monitoring system, consisting 01 a CO2 pollulant concentration monitor, oran oxygen monitor plus suitable mathematical equations from which the CO2 concentration is derived, and an automated data acquisition and handling system and providing a pernianent, continuous record of CO emissions, in percent

### CO.

. 2 (F) An

### oXY~jen rnonitoring2system, consisting of an 02 concentration monitorand an automated data

0.:110' May 29,2008 8:0353AM Em DIN:**200g052g"I!~·,32G080005PI~A**Indiana Regisler acquisition and handling system and providing a permanent, continuous record of

### 0 ,in percent O2. (37) "Control period" means the period beginning May 1 ofa calendaryear, excepi as provided in section 4(c)(2) ofthis rule, and ending on September30 ofthe same year, inclusive. (38) "Electricityfor sale underafirm contract to the electric grid" means electricityfor sale where the capacity involved is intended to be available at all times during the period covered by the guaranteed 

### commitment to deliverl 

### even under adverse conditions. 

## fU1 (39) "Emissions" means air pollutants exhausted from a unit or source into the atmosphere, as measured, recorded, and reported to the U.S. EPA by the CAIR designated representative and as determined bythe U.S. EPA in accordance with section 11 ofthis rule. 

## f&81 (40) "Energy efficiency or renewable energy projects" means any ofthe following implemented in Indiana: (A) End-use energy efficiency projects, including demand-side management programs. (B) Highly efficient electricity or steam generation for the predominant use ofa single end user, such as combined cycle, combined heat and power, microturbines, and fuel cell systems. In orderto be considered

as highly efficient electricity generation underthis clause, combined cycle, combined heat and power, microturbines, and fuel cell generating systems must meet or exceed the following thresholds:

(i) Forcombined heat and power projects generating both electricity and thermal energyfor space, water,

or industrial process 11eat, rated energy efficiency of sixty percent (60%). (ii) For microturbine projects rated at or belowfive hundred (500) kilowatts generating capacity, rated energy efficiency offorty percent (40%). (iii) Forcombined cycle projects rated at greaterthan five 11undred (500) kilowatts, rated energy efficiency offifty percent (50%). (iv) Forfuel cell systems, rated energy efficiency offorty percent (40%), whetheror notthe fuel cell system is part ofacombined heat and power energy system. (C) Zero-emission renewable energy projects, including wind, photovoltaic, solar, and hydropower projects. Eligible hydropower projects are restricted to systems employing a head often (10) feet or less orsystems employing a head greaterthan ten (10) feet that make use of adam that existed before September 16, 2001. (0) Energy efficiency projects generating electricitythrough the capture of methane gas from municipal solid waste landfills, watertreatment plants, sewage treatment plants, or anaerobic digestion systems operating On animal or plant wastes. (E) The installation of highly efficient electricity generation equipment for the sale of powerwhere such equipment replaces ordisplaces retired electrical generating units. In orderto be considered as highly efficient underthis clause, generation equipment must meet or exceed the following energy efficiency thresholds:

(i) Forcoal-fired electrical generation units, rated energy efficiency offorty-two percent (42%). (ii) For natural gas-fired electrical generating units, rated energy efficiency offifty percent (50%). (F) Improvements to existing fossil fuel-fired electrical generation units that increase the efficiency ofthe unit and decrease the heat rate used to generate electricity, including gas reburning projects that reduce NO



### . . 

# . emiSSions. (G) The installalion of integrated gasification comllined cycle equipment producing electricity for sale. (H) Renewable energy projects that displace some portion ofthe combustion of coal, natural gas, or oil through the use of solar energy or methane from landfills, watertreatment plants, sewage treatment plants,

or anaerobic digestion systems on animal or plant wastes and reduce NO emissions

.. Energy efficiency or renewable energy projects do not include nuclear powe? projects. This definition is solely forthe purposes ofimplementing this rule and does not apply in other contexts. 

## \3B1 (41) "Excess emissions" means any ton ofnitrogen oxides emitted by the CAIR NO ozone season units at a CAIR NO ozone season source during acontrol period that exceeds tile CAIR NOxozone season emissions limnation for the source. ' x 

## \49l (42) "FESOP" means a federally enforceallie state operating permit issued under326 lAC 2-8. 

## \4+1 (43) "Fossil fuel" means natural gas, petroleum, coal, or anyform of solid, liquid, or gaseous fuel derived from such material. 

### \4;!) (44) "Fossil-fueHired" means, with regard to a unit, the following: (A) Except as provided in clause (B), comllusting any amount of fossil fuel in any calendaryear. (B) Solely for the purposes of applying the term "large affected unit", the combustion offossil fuel, alone or in combination with any otherfuel, underany ofthe following scenarios:

(i) Fossil fuel actually combusted comprises more than fifty percent (50%) ofthe annual heat input

on a British thermal unit (Btu) basis during any year starting in 1995. Ifa unit had no heat input starting in 1995, during the last year ofoperation ofthe unit priorto 1995. (ii) Fossil fuel is projected to comprise more than fifty percent (50%) ofthe annual heat input on a Btu basis during any year, provided that the unit shall be fossil-fuel-fired as ofthe date, during the year, that the unit begins combusting fossil fuel.

Dale: May29,200H B:03:S3AM ElJT DIN: 20080528·1!\-326ml0005PI\A

### Indiana Register 

### (43) (45) "Fuel oil" means any petroleum-based fuel, including diesel fuel or petroleum derivatives such as oil tar, and any recycled orblended petroleum products or petroleum byproducts used as a fuel whether in a liquid, solid, orgaseous state. 

### (44) (46) "General account" means a CAIR NO ozone season allowance tracking system account, established undersection 9 ofthis rule, that is Aot a compliance account (47) "Generator" means adevice that produces electricity. f4&) 

### (48) "Gross electrical output" means, with regard to ac0generation unit, electricity made available for use. including anysuch electricity used in the powerproduction process. This process may include, but is not limited to, anyon-site processing ortreatment offuel combusted at the unit and anyon-site emission controls. 

### (4+) (49) "Heat input" means, with regard to aspecified period oftime, the product, in million Britisll thermal units per unitoftime (MMBtu/time) ofthe gross calorificvalue ofthe fuel, in British thermal units perpound (Btu/lb), divided by one million (1,000,000) British thermal units per million British thermal units (Btu/MMBtu) and multiplied bythe fuel feed rate into a combustion device, in pounds offuel per unitoftime (Ib offuel/time),

as measured, recorded, and reported to the U.S. EPA bythe CAIR designated representative and determined by the U.S. EPA in accordance with section 11 ofthis rule and excluding the heatderived from preheated combustion air, recirculated flue gases, orexhaust from othersources. 

## \4llJ (50) "Heat input rate" meansthe amount ofheat input, in million British thermal units (MMBtu), divided by unitoperating time, in hours, or, with regard to aspecificfuel, the amount ofheat input attributed to the fuel, in million British thermal units (MMBtu), divided bythe unitoperating time, in hours, during which the unit combusts the fuel. 

### (491 (51) "Large affected unit" means the following: (A) For units otherthan cogeneration units commencing operation, the following:

(i) Before January 1, 1997, a unitthat has a maximum design heat input greaterthan two hundred fifty million (250,000,000) Btus per hourand that did notserve during 1995 or 1996 a generatorproducing electricityforsale underafirm contractto the electric grid. (ii) On orafterJanuary 1, 1997, and before January 1, 1999, a unitthat has a maximum design heat input greaterthan two hundred fifty million (250,000,000) Btus per hourand that did notserve during 1997 or 1998 a generator producing electricity for sale underafinn contract to the electric grid. (iii) On orafterJanuary 1, 1999, a unitwith a maximum design heat input greaterthan two hundred fifty million (250,000,000) Btus per hourthat:

(AA) at no time serves ageneratorproducin9 electricityfor sale; or (BB) at any time serves ageneratorproducing electricityfor sale, ifanysuch generatorhas a nameplate capacity oftwenty-five (25) megawatt electrical or less and hasthe potential to use no more than fifty percent (50%) ofthe potential electrical output capacity ofthe unit. (B) Forcogeneration units commencing operation, the following:

(i) Before January 1, 1997, a unitwith a maximum design heat inputgreaterthan two hundred fifty million (250,000,000) Btus per hourand qualifying as an unaffected unit underthe acid rain program for 1995 and 1996. (ii) In 1997 or 1998, a unitwith amaximum design heat input greaterthan two hundred fifty million (250,000,000) Btus per 110urand qualifying as an unaffected unit underthe acid rain program for 1997 and 1998 (iii) On orafterJanuary 1, 1999, a unitwith amaximum design heat input 9reaterthan two 11undred fifty million (250,000,000) Btus per hourand qualifying as an unaffected unit underthe acid rain program for each year. (C) For units otherthan cogeneration units that are notalreadysubjectto this rule under section 1(a)(1) or 1(a)(3) ofthis rule commencing operation:

(i) before January 1, 1997, a unit serving ageneratorduring 1995 or 1996 that had a nameplate capacity greaterthan twenty-five (25) megawatts and produced electricity for sale underafirm


### contracttothe electric grid; (ii) on or afterJanuary 1, 1997, and before January 1,1999, a unitserving a generatorduring 1997

or 1998 that had a nameplate capacity greaterthan twenty-five (25) megawatts and produced electricityfor sale underafirm contract to the electric grid; or 

### (iii) on orafterJanuary 1, 1999, a unitserving a generatorat any time that has a nameplate capacity greaterthan twenty-five (25) megawatts and produced electricityfor sale under afirm contractto the electric grid. 

### (0) For cogeneration units that are not already subjectto this rule undersection 1(a)(1) or 1(a)(3) of this rule commencing operation:



### (i) before January 1, 1997, a

### u~ii serving ageneratorduring 1995 or 1996that had a nameplate capacity greaterthan twenty-five (25) megawatts and failing to qualify as an unaffected unit for 1995 or 1996 underthe acid rain program; (ii) in 1997 or 1998, a unit serving a generator during 1997 or 1998 with a nameplate capacity

Dale May 29,2008 8:035:lAM EDT DIN:**20080528·11~·326080005PF<f.\**Indiana Register greaterthan twenty-five (25) megawatts and failing to qualify as an unaffected unitfor 1997or 1998 underthe acid rain program; or (iii) on or afterJanuary 1, 1999, a unit serving at any time a generatorwith a nameplate capacity greater than twenty-five (25) megawatts and failing to qualify as an unaffected unit underthe acid rain program for any year. The term does not include a unit subject to 326 lAC 10-3. 

## ffiG1 (52) "Life-of-the-unit, firm power contractual arrangement" means a unit participation power sales agreement underwhich a utility or industrial customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity and associated energy generated by any specified unit and pays its proportional amount of such unit's total costs, pursuant to a contract: (A) for the life ofthe unit; (B) for a cumulative term of no less than thirty (30) years, including contracts that permit an election for early termination; or (C) for a period no less than twenty-five (25) years or seventy percent (70%) ofthe economic usefut life of the unit determined as ofthe time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period. 

## \&'1-1 (53) "Maximum design heat input" means Ihe maximum amount offuel per hour, in British thermal units per hour (Btu/hr), that a unit is capable ofcombusting on a steady state basis as of the initial installation ofthe unit as specified bythe manufacturerofthe unit 

## \fu'1 (54) "Mercury budget trading program" means a multistate mercury air pollution control and emission reduction program approved and administered by the U.S. EPA in accordance with 40 CFR 60, Subpart HHHH' and 40 CFR 60.24(h)(6)', or established bythe U.S. EPA underthe Clean AirAct, Section 111, as a
means of reducing national mercury emissions. (55) "Monitoring system" means any monitoring system that meets the requirements ofsection 11 ofthis rule, including a continuous emissions monitoring system, an alternative monitoring system, or an excepted monitoring system under40 CFR 75'. 

### (§4) (56) "Most stringent state orfederal NO weRe seaSOR emissions limitation" means, with regard to a unit, the lowest NO emissions limitation, in 

### termtof pounds per million British thermal units (lb/MMBtu), that is applicable to tAe unit understate orfederal law, regardless of the averaging period to which the emissions limitation applies. 

## f&frJ (57) "Nameplate capacity" means, starting from the initial instaliation of a generator, the maximum electrical generating output, in megawatt electrical (MWe), that the generator is capable of producing on a steady state basis and during continuous operation (when not restricted by seasonal or other deratings) as of such installation as specified 

### by the manufacturerof the generatoror, starling from lhe completion of any subsequent physical change in the generator resulting in an lncrease in the maximum electrical generating output, in megawatt electrical (MWe), tllat the generator is capable ofproducing on a steady state basis and during continuous operation (when not restricted by seasonal or other deratings) such increased maximum amount as ofsuch completion as specified bythe person conducting the physical cl1ange. 

### te6l (58) "Oil-fired" means, forthe purposes of section 8 ofthis rule, cornbusting fuel oil for more than fifteen percent (15%) of the annual heat input in aspecified year and not qualifying as coal-fired. 

### (§+J (59) "Operator" means any person who operates, controls, or supervises a CAIR NO ozone season unit

or a CAIR NO ozone season source and sl1all include, but not be limited to, any holding Eompany, utility 

# .
. system, or plant managerof such a unit or source. (60) "Owner" means any of the following persons: (A) With regard to a CAIR NO ozone season source or a CAIR NO ozone season unit at a source, respectively, any ofthe foll00ing: •

(i) AFtY Holderofany portion oftile legal or equitable title in a CAIR NOxozon8 season unit at the source or the CAIR NO ozone season unit (ii) aHy Holde? ofa leasehold interest in a CAIR NO ozone season unit at tile source orthe CAIR NO

ozone season unit 9f x x (iii) aRy Purchaser of power from a CAIR NO ozone season unit at the source orthe CAIR NO ozone
season unit undera life-of-the-unit, firm power contractual arrangement; provided that, unless expressly provided for in a leasehold agreement, owner shall not include a passive lessor, or a persall who has an equitable interest through such lessor, whose rental payments are not based, either directly or indirectly,

on the revenues or income from such CAIR NO ozonE; season unit. 6f

. x.

. .' (8) Wlih regard to any general account, any person who has an ownership mtereSI With respect to the CAIR NO ozone season allowances held in the general account and who is subject to the binding agreement for thetAIR authorized account representative to represent the person's ownership interest with respect to CAIR NO ozone season allowances. 

## f-efB (61) "Permitting authority" means the state air pollution control agency, local agency, other state agency,
or other agency authorized by the U.S. EPAto issue or revise permits to meet the requirements of the CAIR**D~lte** May 29.2008 80353AM ElY! DIN·**?0080528·11~-32G080005pr~A**Indiana Register NO annuallrading program ifl.-a€wrdancewitfr.seeHon 7 ofthis rule or, ifno such agency has been so autAorized, the U.S. EPA. 

### (62) "Potential electrical output capacity" means thirty-three percent (33%) ofa unit's maximum design heat input, divided bythree thousand four hundred thirteen (3,413) Btu/kilowatt 110ur, divided by one thousand (1,000) kilowatt hour/megawatt hour, and multiplied by eight thousand seven hundred sixty (8,760) hours/year. 

## i6+1 (63) "Rated energy efficiency" means the percentage ofgross energy inputthai is recovered as useable net energy output in the form of electricity orthermal energy. or both, that is used for heating, cooling. industrial processes, orother beneficial uses as follows:

(A) Forelectric generators, rated energy efficiency is calculated as one (1) net kilowatt hour (three thousand four hundred twelve (3,412) British thermal units) ofelectricity divided bythe unit's design heat rate using the higher heating value ofthe fuel. (B) Forcombined heat and power projects, rated energy efficiency is calculated using the following formula: Eff% = (NEO + UTO)/GEI

Eff% NEO UTO· = Rated energy efficiency.

=: Net electrical output ofthe system converted to British then1ial units per unit oftirne.

:: Utilized thermal output orthe energyvalue in British thermal units ofthermal energy from the system that is used for heating, cooling, industrial processes, orother beneficial uses, per unit oftime. GEl Gross energy input, based upon the higher heating value offuel, per unit oftime. 

### (64) "Receive" or "receipt of" means, when referring to the department or U.S. EPA. to come into possession of adocument, information, orcorrespondence, whether sent in hard copy or by authorized electronictransmission, as indicated in an official log, or by a notation made on the document, information, or correspondence, bytile department or U.S. EPA in the regularcourse ofbusiness. 

## \&l1 (65) "Recordation", "record", or "recorded" means, with regard to CAIR NO ozone season allowances,

. 

# , the movement of CAIR NO ozone season allowances by the U.S. EPA Into or between CAIR NO ozone
season allowance tracking :System accounts, for purposes ofallocation, transfer, ordeduction. x (B4) 

### (66) "Reference method" means any directtest method ofsamplinq and analyzinq for an air pollutant as specified in

### 40 CFR 75.22'. (67) "Replacement", "replace", or "replaced" means, witil regard to 

### a unit, tile demolishing ofa unit, orthe permanent shutdown and permanent disabling of a unit, and the conslruction ofanother unit (the replacement unit) to be used inslead ofthe demolished orsllutdown unit (the replaced unit). 

### (68) "Repowered" means, with regard to a unit, replacement ofa coal-fired boilerwith one (1) ofthe following coal-fired tecl1nologies at the same source as the coal-fired boiler: (A) Atmospheric or pressurized fluidized bed combustion. (B) Integrated gasification combined cycle. (C) Magnetohydrodynamics. (D) Directand indirect coal-fired turbines. (E) Integrated gasification fuel cells. (F) As determined bythe U.S. EPA in consultation witl1 the Secretaryof Energy, a derivative ofone (1) or
more ofthe technologies underclauses (A) through (E) and any othercoal-fired technology capable of controlling multiple combustion emissions simultaneouslywith improved boiler or generation efficiency and with significantly greaterwaste reduction relative to the performance oftechnology in widespread commercial use as ofJanuary 1, 2005. 

## \B+-) (69) "Sequential use of energy" means: (A) for

### atopping-cycle cogeneration unit, the use of reject heatfrom electricity production in a useful thermal energy application or process; or (B) for a bottoming-cycle cogeneration unit, the use of reject heat froni useful thermal energy application or process in electricity production. 

### {(8) (70) "Serial number" means, for a CAIR NO ozone season allowance, the unique identification number assigned to each CAIR NO ozone season allow'ance by the U.S. EPA. 

## t€91 (71) "Solid waste incineration unit" means a stationary, fossil-fuel-fired boileror stationary, fossil-fuel-fired cornbustion turbine that is a solid waste incineration units as defined in the Clean AirAct, Section 129(g)(1). (TO) (72) "Source" means all buildings, structures, or installations located in one (1) or rnore contiguous or adjacent properties undercommon control ofthe same person or persons. For put"poses of Section 502(c) of the Clean AirAct, a source, including a source with multiple units, sllalllJe conSldel·ed a Single facility. 

### (-f-+1 (73) "Submit" or "serve" means to send ortransmit adocurnent, information, Or" correspondence to the person specified in accordance with the applicable rule:

(A) in persoll, (B) by Ul1Itod States Postal Service; or (C) by other rneans of dispatch or transmission and delivery. Where:

Dale: M<:IY 29.2008 8:0:3S:3AM EDT DIN:**20080528·ll~·326080005pr~A**Indiana Register Compliance with any submission orservice deadline shall be determined bythe date ofdispatch, transmission, or mailing and not the date of receipt bythe department or U.S. EPA. 

### fh!) (74) "Title Voperating permit" or "Part 70 operating permit" means a permit issued under326 lAC 2-7. 

## fhl1 (75) "Title 

### Voperating permit regulations" or "Part 70 operating permit regulations" means the rules under 326 lAC 2-7. 

## f741 (76) "Ton" means two thousand (2,000) pounds. Forthe purpose ofdetermining compliance with the CAIR NO ozone season emissions limitation, total tons of nitrogen oxides emissions for a control period shall be calculated as the sum ofall recorded hourly emissions, orthe mass equivalent ofthe recorded hourly emission rates, in accordance with section 11 ofthis rule, butwith any remaining fraction of aton equal to or greaterthan fifty-hundredtlls (0.50) tons deemed to equal one (1) ton and any remaining fraction of a ton less than fifty-hundredths (0.50) tons deemed to equal zero (0) tons. 

## f+&l (77) "Topping-cycle cogeneration unit" means acogeneration unit in which the energy inputto the unit is first used to produce useful power, including electricity, and at least some ofthe reject heatfrom tile electflcity production is then used to provide useful thermal energy. 

## f+&l (78) "Total energy input" means, with regard to acogeneration unit, total energy ofall forms supplied to the cogeneration unit, excluding energy produced by the cogeneration unit itself. Each form ofenergy supplied shall be measured bythe lower heating value ofthat form ofenergy calculated as follows: LHV

### =HHV

- 10.55(W + 9H)

Where: LHV 

### = Lower heating value offuel in Btu/hr. HHV 

### = Higher heating value offuel in Btu/hr. W 

### = Weight 

### % of moisture in fuel. H 

### = Weight 

### % of hydrogen in fuel. 

### f:R1 (79) ''Total energy output" means, with regard to a cogeneration unit, the sum of useful powerand useful thermal energy produced by the cogeneration unit. (80) "Unit" means:

. (A) except as provided in clause (B), astationary, fossil-fuel-fired boileror combustion turbine or other stationary, fossil-fuel-fired combustion device; and (B) solely forthe purposes ofapplying the term "large affected unit", afossil-fuel-fired:

(i) stationary boiter; (ii) combustion turbine; or (iii) combined cycle system, 

### p.gJ (81) "Unit operating day" means a calendar day in which a unit combusts any fuel. 

## f8G1 (82) "Unit operating hour" or "hourof unit operation" means an hour in which a unit combusts any fuel. 

## f&+1 (83) "Useful power" means, with regard to a cogeneration unit, electricity or mechanical energy made available for use, excluding any such energy used in the power production process, which process includes, but is not limited to, anyon-site processing ortreatment offuel combusted at the unit and anyon-site emission controls. (84) "Useful thermal energy" means, with regard to a cogeneration unit, thermal energythat is: (A) made available to an industrial or commercial process, not a power production process, exclUding any heat contained in condensate return or makeup water; (B) used In a heatll1g application (for example, space heating ordomestic hotwater heating); or (C) used in a space cooling application (that is, thermal energy used by an absorption chiller), 

### f&;J.j (85) "Utility powerdistribution system" means the portion of an electricity grid owned oroperated by a utility and dedicated to delivering electricityto customers.**~These** documents are incorporated by reference. Copies may be obtained froni the Government r·")rinting Office, 732 Norlh Capitol Street NW, Washington, DC. 20401 or are available for review and copying at the Indiana Department of Environmental Management, Office ofAir Quality, Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204. (AirPollution ControtBoard; 

### 126 tA<::'Z4:1:2., IitedJan 

### 26,2007,10.25am

... 

### 2,D.QZQ221-1B:J..2f!Q50117F.B.d, errata filedJan 29, 

### 2007, 243p.m. 

### 20070221-1R-326050117 ACA)

SECTION 12.326 lAC 24-3-7 IS AMENDED TO READ AS FOLLOWS

326 lAC 

### 24-3-ZPermit requirements Authority: !<:::J3:H:Jl; !.G.-.1lJ7-3-4; !.<:::.J3-17-3:11 Affected: !<:::U:.111; !'<:::'.1J.:11

Dale: May 29,2008 8:03 ::i3AM ED'l DIN:**2008052H·II~·326080005PF\A**Indiana Register

Sec. 7. (a) For each CAIR NO ozone season source required to have a federally enforceable permit, the permit shall include a CAIR pennil administered by the department as follows: (1) For CAIR NO sources required to have a Part 70 operating permit under 326 lAC 2-7, the CAIR portion of the Part 70 permh shall be administered in accordance with 326 lAC 2-7, except as provided otherwise by this section and sections 3 and 12 ofthis rule. (2) For CAIR NO sources required to loave a FESOP under 326 lAC 2-8, the CAIR portion ofthe FESOP sloall be administered rn accordance with 326 lAC 2-8, except as provided otherwise bythis section and sections 3 and 12 ofthis rule. (3) Each CAIR permit, including a draft or proposed CAIR permit, ifapplicable, shall contain, with regard to the CAIR NO ozone season source and the CAIR NO ozone season units at the source covered by the CAIR permit, al[applicable CAIR NO ozone season tradrng program, CAIR NO annual trading program, and CAIR S02 trading program

### requirem~nts and shall be acomplete and separable'portion ofthe Part 70 operating permit or FESOP.

(b) Requirements fortloe submission of CAlRpermit applications are as follows: (1) The CAIR designated representative ofany CAIR NO, ozone season source required to have a Part 

### IO operating permit or FESOP shall submit to Ihe department a complete CAIR permit application under subsection (c) for the source covering each CAIR NO ozone season unit at the source alleast two hundred seventy (270) days before the lalerofJanuary 1, 2009, orthe date on which the CAIR NO ozone season unit

commences commercial operation, except as provided in section 12(e) ofthis rule. x (2) Fora CAIR NO ozone season source required to have a Part 70 operating permit or FESOP, the CAIR designated represe'ntative shall submit a complete CAIR permit application undersubsection (c) for the source covering each CAIR NO ozone season unit at the source to renew the CAIR permit in accordance with 326 lAC 2-7-4(a)(1 )(0) or3213 lAC.2.,S-3(h), as applicable, except as prOVided in section 12(e) ofthis rule.

(c) lft-BOOtlion to the requirements of 320 lAG 

### 2-I**~(G)** or320 lAG 2**S~** A complete CAIR permil application shall include the following elemenls conceming the CAIR NO ozone season source forwhich the application is submitted: ' (1) Identification ofthe CAIR NO ozone season source. (2) Identification of each CAIR Nt) ozone season unit at the CAIR NO ozone season source. (3) The standard requirements undersection 4 ofthis rule. '

(d) lft-Bedition te the requir-efflents under32&-IAG-;:>-+-er-3;!tHAG-2-8, Each CAIR permit shall contain, in a format prescribed by the department, all elemenls required for acomplele CAIR permit application under subsection (c).

(e) Each CAIR permit is deemed to incorporate automatically tloe definitions of lerms under seclion 2 of Ihis rule and, upon recordation bythe U.S. EPA underseclion 9, 10, or 12 ofthis rule, every allocalion, Iransfer, or deduction of a CAIR NO ozone season allowance 10 or from the compliance account ofthe CAIR NO ozone
season source covered

# 6y the permit. x

(f) The initial CAIR permit covering a CAIR unit for whiclo a complete CAIR permit application is timely submitted undersubsection (b) shall become effectiv.8 upon issuance.

(g) The term of Ihe CAli, permit shall be set Ilythe department, as necessary to facilitate coordination ofthe renewal ofthe CAIR permit with issuance. revision, or renewal ofthe CAIR NOxozone season source's Part 70 opemting permit or FESOP.

(11) Except as provided in subsection (e), the department shall mvise the CAIR permit, as necessary, in accordance with tloe following: (1) The permit rrlOdificCllion and reviSion provisions under 326 iAC 

### 2-l, for a CAif-.< source with a Part 70 operating permit. (2) The permit modification and revision provisions underJ;2_Q..!8C 2,_Q., for aCAIR source wilh a FESOP. (AirPollution ConlrolBoard; 326 lAC 24-3-7, IliadJan 26,2007,10.25am.. 20070221-IR-326050117FRAJ

Date: May 29,200H 8:03:53AM [c.m DIN" 20080528"11:.z-32G080()05pr<A Page 56Indiana Register SECTION 13. 326 lAC 24-3-8 IS AMENDED TO READ AS FOLLOWS,

326 lAC 24-3-8 CAIR NO ozone season allowance allocations


# , Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 8. (a) The NO ozone season trading program bUdget allocated by the department undersubsections (d) through 

### U) for each control period shall equal the total numberof CAIR NO ozone season allowances apportioned to the CAIR NO ozone season units undersection 1 ofthis rule forthe control period, as determined by the procedures in this sec"tion. The total numberofCAIR NO ozone Season allowances that are available for each control period for allocation as CAIR NO ozone season anowances underthis rule are fifty-five thousand

seven hundred twenty-nine (55,729) Ions in 2009 through 2014, and forty-nine thousand fifty (49,050) tons in 2015 and thereafter, apportioned as follows: (1) Forexisting units (that is, units that have a baseline heat input, as determined undersubsections (c) and (d)): •

(A) forty-three thousand six hundred fifty-four (43,654) tons in 2009 through 2014 and thirty-eight thousand ninety-five (38,095) tons in 2015 and thereafterfor CAIR NO ozone season units undersection 1(a)(1) of this rule; and ' (B) eightthousand five hundred sixty-four (8,564) tons in 2009 and eight thousand seven hundred twenty-seven (8,727) tons for large affected units undersection1(a)(2) ofthis rule for a control period during 2010 and thereafter. (2) For new unit allocation set-asides:

(A) two thousand two hundred ninety-eight (2,298) tons in 2009 through 2014 and one thousand one hundred seventy-eight (1,178) tons in 2015 and thereafterfor CAIR NO ozone season units under section 1(a)(1) ofthis rule; and ' (B) ninety-eight (98) tons in 2009 and four hundred (400) tons in 2010 and thereafterfor large affected units undersection 1(a)(2) ofthis rule. (3) Forthe energy efficiency and renewable energy allocation set-aside, one thousand one hundred fifteen (1,115) tons in 2009 and five hundred (500) tons in 2010 and thereafter. (4) Fora hardship sel-aside for large affecled units undersection 1(a)(2) oftllis rule, one hundred fifty (150) tons in 2010 and thereafter.

(b) The department shall allocate CAIR NO ozone season allowances to CAIR NO ozone season units

.. x x accordlllg to the follOWing schedule: (1) ForCAIR NO ozone season units under section 1(a)(1) and large affected units under 1(a)(2) ofthis rule,

an initial five (5) year allocation and then a six (6) year allocation that is recorded six (6) years in advance of the control period that tile allowances may be used as follows: (A) Within t11irty (30) days ofthe effective date ofthis rule, Ihe department shall submil to the U.S. EPA 1I1e CAIR NO ozone season allowance allocations, in a format prescribed bythe U.S. EPA and in accordance with

### subs~ctions (c), (d), and (e) forthe control periods in 2010,2011,2012,2013, and 2014. (8) By October31, 2008, and October 31 every six (6) years thereafter, the department shall submit 10 tile U.S. EPAthe CAIR NO ozone season allowance allocations, in a format prescribed bythe U.S. EPAand in accordance with

### subse~tions (c), (d), and (e), forthe control periods seven (7), eigllt (8), nine (9), ten (10), eleven (11), and Iwelve (12) years afterthe year ofthe allowance allocation. (C) By July 31, 2009 and July 31 ofeaell year Ihel'cafter, the department shall submit 10 the U.S. EPAthe CAIR NO Olone season allowance allocations, in afOITnat prescribed 

### by the U.S. EPA and in accordance with

### sUbs~ctions (f) through (h), for the control period in tile year ofthe applicable deadline for submission underthis rule. (D) Forthe 2009 control period, the CAIR NO ozone season allowances are the 2009 ozone season allowances issued under32!l.lACJO-4-9 that),ave been recorded by U.S. EPA as ofthe effective date of this rule. (2) The department shall make available for review to Ihe public Ihe CAIR NO allowance allocations under subdivision (1 )(8) on July 31 of

### cadi year a!!ccations are

### rn~1d8 and sha!!

### pro\f~de.:~ thirty (30) day opportunity for submission of objections 10 Ihe CAIR NO allowance allocations. Objections sllall be limiled to addressing whetherthe CAIR NO allowance allocations"are in accordance with this section. Based on any such objections, the

### departr~ent shall consider any objections and input from affected sources and, jf appropriate, adjust each determination to the extent necessary to ensure that it is in accordance with this section.

Dalt,: May 29,200e 8:03:53AM ED'! fJIN·**200BOS2B·II~<32G0800()~iPI~A** P<lge 57

### Indiana Register
(c) The baseline heat input, in million British thermal units (MMBtu), used with respect to CAIR NO ozone
season allowance allocations under subsection (d) for each CAIR NO ozone season unitshall be: x x 

### (1) For units commencing operation before January 1,2001:

(A) Fora CAIR NO ozone season allowance allocation undersubsection (b)(1)(A), the average ofthe three (3) highestamount§ ofthe unit's adjusted control period heat input for 1998 through 2005, with the adjusted control period heat inputfor each yearcalculated as follows:

(i) If the unit is coal-fired during the year, the unit's control period heat input for such year is multiplied by

one hundred percent (100%). (ii) Ifthe unit is oil-fired during the year, the unit's control period 11eat input for such year is multiplied by sixty percent (60%). (iii) Ifthe unit is not SUbjectto item (i) or (Ii), the unit's control period heat inputfor such year is multiplied by forty percent (40%). (B) Fora CAIR NO ozone season allowance allocation undersubsection (b)(1 )(B), the unit's average ofthe three (3) highestarhounts ofthe unit's adjusted control period heat inputfor the eight (8) years before when the CAIR NO ozone season allocation is being calculated, with the adjusted control period heat input for each yearcarculated as follows:

(i) Ifthe unit is coal-fired during the year, tl1e unit's control period heat input for such year is multiplied by

one hundred percent (100%). (ii) Ifthe unit is oil-fired during the year, the unit's control period heat input for such year is multiplied by sixty percent (60%). (iii) Ifthe unit is not subjectto item (i) or (ii), the unit's control period heat inputfor such year is multiplied by forty percent (40%). (2) For units commencing operation on orafterJanuary 1,2001, and operating each calendaryearduring a period ofthree (3) or more consecutive calendaryears, the average ofthe three (3) highestamounts ofthe unit's total converted control period heat input for the years before when the CAIR NO ozone season allocation is being calculated, not to exceed eight (8). x (3) A unit's control period heat input, and a unit's status as coal-fired or not coal-fired, for acalendaryear undersubdivision (1), and a unit's total tons of NO ozone season emissions during a control period in a 

### calendaryear undersubsection (e)(3), shall be defermined in accordance with 40 CFR 75', to the extentthe unitwas otherwise subjectto the requirements of40 CFR 75' forthe year, orshall be based on the best available data reported to the departmentforthe unit, to the extent the unitwas not otherwise subject to the requirements of40 CFR 75' forthe year. (4) A unit's converted control period heat input for a calendaryear undersubdivision (2) equals one (1) ofthe following: (A) The control period gross electrical output ofthe generatororgenerators served bythe unit multiplied by eight thousand nine hundred (8,900) British thermal units per kilowatt 110ur(Btu/kWh) for coal-fired units or
seven thousand six hundred (7,600) British thermal units per kilowatt hour (Btu/kWh) for a unitthat is not coal-fired divided byone million (1,000,000) British thermal units per million British thermal units (Blu/MMBtu), provided that ifa generalor is served by two (2) or more units, then the gross electrical oulput of Ihe generatorshall be attributed to eacl1 unit in proportion to the unit's share ofthe total control period heat input ofsuch units forthe year. (B) Fora unitthai has equipment used to produce electricityand useful thermal energyfor industrial, commercial, heating, orcooling purposes through the sequential use of energy, the control period gross electrical output ofthe unit multiplied by eightthousand nine hundred (8,900) British thermal units per kilowatt hour (Blu/kWh) plus the useful energy, in Brilish thermal units (Btu), produced during the control period divided by eight-tenths (0.8), and with tl1e sum divided byone million (1,000,000) British thermal units por million British Ihermal units (Btu/MMBtu).

(d) The deparlment shall allocate CAIR NO ozone season allowances to all CAIR NO ozone season unils

., x 

### undersection 1(a)(1) ofthiS rule as follows: (1) Forthe control period in 2009, the CAIR NO ozone season allowances are the 2009 ozone season allowances issued under31Q.lAC 10-4-9 thai have been recorded by U.S. 

### EPAas ofthe effective date oftl1is rule. 

### (2) Foreach control period in 2010 and thereatler, the department shall allocate 10 all CAIR NO ozone season units that have a baseline heat input, as determined under subsection (c), atotal amount ofCArR NO ozone
season allowances as listed In subsection (a)(1), except as provided in subsection (f). ' (3) The department shall allocate CAIR NO ozone season allowances to each CAIR NO ozone season unit undel" this subsection, except 

### large 

### affectedunits, in an amount determined by multiplying the 

### total amount of CAIR NO ozone season allowances allocated underthis subsection 

### by Ule ratio ofthe baseline heat input of 

### suel1 CAIR NO ozone season unitto the lotal amount of baseline heat input 01 all such CAIR NO ozone

, x

Dale: May 29,2008 S:0353AM un DIN:**20080528·11~·326080005PHA** Page513

### Indiana Register

season units and rounding to the nearestwhole allowance as appropriate.

(e) The department shall allocale CAIR NO ozone season allowances to each large affected unit under section 1(a)(2) ofthis rule as follows: ' (1) Forthe control period in 2009, the CAIR NO ozone season allowances are the 2009 ozone season allowances issued under326 lAC 10-4-9 that hiive been recorded by U.S. EPAas ofthe effective date ofthis rule. (2) Forthe control period in 2010 and Ihereafter, afixed CAIR NO, ozone season allowance allocalion to the followin9 large affected units:
Source Unit Allowances (A) American Electric Power-Rockport Auxiliary Boiler 1 2 Auxiliary Boiler2 2 (B) Portside Energy Auxiliary Boiler 1 50 Auxiliary Boiler2 5 

### Combustion Turbine 34 (3) Forthe control period in 2010 and thereafter, all largo affected units Ihatcommenced operation I)efore January 1, 2001, and not identified in subdivision (2), CAIR ozone season NO, allowances will be allocated as follows: (A) The target NO emission rate for purposes ofallowance allocation for all large affected units that commenced oper§tion before January 1,2001, shall be as follows:

017 0.368 0.240 017 Target NO Emission


# , Rate (Ib NO /MMBtu)


# , 0184 Source 

### (i) BP Whiting Business (units 1SPS13, 1SPS14, 1SPS15, 1SPS16, 1SPS17, 3SPS31, 3SPS32, 3SPS33, 3SPS34, 3SPS36) (ii) C.C. Perry Steam (units 11,13,14) (iii) C.C. Perry Steam (unit 12) (iv) C.C. Perry Steam (units 15, 16) (v) Mittal Steel Indiana Harbor(units 211,212,213,401,402,403, 404,405,501,502,503) (vi) New Energy (unit U400) 0.24 (vii) Purdue Universily (units 1, 2) 0.24 (viii) Purdue University (unit 3) 0.17 (ix) Purdue University (unit 5) 0.24 (x) U.S. Steel- GaryWorks (units 701 B1, B2, B3) 0.09 (xi) U.S. Steel

- Gary Works (units 701 B5) 0.08 (xii) U.S. Steel

- GaryWorks (units 701 B6) 0.05 (xiii) U.S. Steel- GaryWorks (units 720 B1, B2, B3) 0.06 (xiv) Warrick (units 1,2,3) 0.28 (B) The maximum design heat input based NO rate allocation shall be the product ofthe design heat input (Design HI), in million British thermal units per Rour (MMBtu/l1f), mUltiplied by three thousand six hundred seventy-two (3,672) hours multiplied by the target NO emission rate in clause (A), in pounds per million British thermal units (lb/MMBtu), multiplied by fifty per6ent (50%), and divided by two thousand (2,000). The Design HI, in million British Ihermal unils per hour (MMBtu/hr), shall be the value supplied to the US. EPA in the RT504 field ofthe quarterly eleclronicdata report (EDR) as required in seclion 11 ofthis rule or equivalenl quality assured and cer'lified data. (C) The actual heat input based NO, rale allocalion shall be tile product ofthe actual control period heat input multiplied bythe targel NO emission rale in clause (A) divided by Iwo thousand (2,000) wllere:

(i) Ihe unit's actual control

### perio~ heat inpul sl1all be determined using one hundred twenty percent (120%) ofthe highesl actual control period heal input recorded in

(AA) the years 2000 through 2005 for an allocalion under subseclion (b)(1 )(A); and (BB) the eight (8) years before the year Ihe CAIR NO ozom) season allocalion is being calculaled under subsection (b)(1 )(B); and ' (ii) actual conlrol period heat inputshall be based on Ihe besl available data for each control period reported in accordance with section 11 of Ihis rule and 40 CFR Part 75' orfor control periods priorto 2008 certified accurate bya responsible olficial in accol'dance with 326 lAC 2-7-4(f). (0) The total ozone season CAIR NO allocation shall be the sum of the maximum design heat input based NO rate allocation and actual heat inbut based NO rate allocation.


## , ,

Dato: May 29,2008 H:03:53AM EDT DIN.**2008052()·lf~-3260800()5PI:,zA** Page 59Indiana Register (E) Ifthe initial totat numberof NO allowances allocated to all large affected units for acontrol period under this subsection does not equal the'amount undersubsection (a)(1 )(B), the department shall adjustthe total numberof NO allowances allocated to all large affected units forthe control period underthis subdivision 

# .

. . so that the total numberof NO allowances allocated equals the amount undersubsection (a)(1 )(B) minus the allocations undersubdivisi6n (2). This adjustment shall be made by:

(i) multiplying each unit's allocation bythe amount undersubsection (a)(1)(B) minus the amounts allocated in subdivision (2); and

. (ii) dividing bythe total numberof NO allowances allocated underthis subdivision, and rounding to the 

# .

. nearestwhole NO allowance, as appropnate

. 

# •
(f) Foreach control period in 2009 and thereafter, the department shall allocate CAIR NO ozone season allowances to CAIR NO ozone season units undersection 1(a)(1) ofthis rule that commenc§d operation on or afterJanuary 1,2001, a7Jd do notyet have a baseline heat input, as determined under subsection (c), in accordance with the following procedures: (1) For CAIR NO ozone season units undersection 1(a)(1) ofthis rule, the department shall establish a separate new unl1 set-aside foreach control period equal to two thousand two hundred ninety-eight (2,298) tons for a control period during 2009 through 2014 and one thousand one hundred seventy-eight (1,178) tons for a control period during 2015 and thereafter, (2) The CAIR designated representative ofsuch a CAIR NO ozone season unit maysubmit to the department

a request, in a format specified by the department, to be allo'bated CAIR NO ozone season allowances, starting with the later ofthe control period in 2009 orthe first control period alterthe control period in which the CA1R NO ozone season unit commences commercial operation and until the first control period forwhich the unit is allo"cated CAIR NO ozone season allowances undersubsection (d). A separate CAIR NO ozone
season aHowance

### allocatj~n requestfor each control period for which CAIR NO ozone season 

### aTIowances are sought must be submitted on or before February 1 of such control period and arterthe date on which the CAIR NO ozone season unit commences commercial operation. (3) 1n a CAIR NO ozone season allowance allocation request undersubdivision (2), the CAIR designated representative

### m~y request fora control period CAIR NO ozone season allowances in an amount not exceeding the

### CAIF~ NO ozone season unit's total tons

# 01 NO ozone season emissions during the calendar year immediately before\uch control period. x (4) The department shall review each CAIR NO ozone season allowance allocation request undersubdivision (2) and shall allocate CAIR NO ozone season

### ~lIowances foreach control period pursuant to such request as follows: x (A) Tile department shall accept an allowance allocation request only ifthe request meets, or is adjusted by the department as necessary to meet, the requirements ofsubdivisions (2) and (3). (B) On orafter February 1 ofthe control pertod, the department shall determine the sum ofthe CAIR NO

ozone season allowances requested, as adjusted underclause (A), in all allowance allocation requests x accepted underclause (A) forthe control period, (C) Ifthe amount of CAIR NO ozone season allowances in the new unit set-aside for the control period is
x greater IIlan orequal to Ihe sum underclause (B), then the department shall atlocate IIle amount of CAIR NO ozone season allowances requested, as adjusted underclause (A), to each CAIR NO ozone season uni(covered by an allowance allocation request accepted underclause (A). ' (D) Ifthe amount of CAIR NO ozone season allowances in the new unit set-aside forthe control period is less than the sum underclaute (B), then the department shall allocate to each CAIR NO ozone season unit covered by an allowance allocation request accepted underclause (A) tile amount ofthe'CAIR NO ozone
season allowances requested, as adjusted underclause (A), multiplied bythe amount ofCAIR NOxozone Season allowances in the new unit

### set~aside forthe control period, divided 

### by the sum deterrnined

### ~nder clause (8), and rounded to the nearest whole allowance as appropriate. (E) The deparlment shall notify each CAIR designated representative tl1at submitted an allowance allocation request ofthe amount of CAIR NO ozone season allowances, if any, allocaled forthe control period to the.• CAIR NO ozone season unit cove1ed by the request and submilto U.S. EPA according to section (b)(3).
x
(g) For each conlrol pel'iod in 2009 and thereafter, Ihe department shall allocate CAIR NO ozone season allowances to larqe affected units under section 1(a)(2) ofthis rule that commenced 

### operationon orafterJanuary 1,2001, in accordance with the following procedures: (1) For large affected units undersection 1(a)(2) of Illis rule, the department shall establish a separate new unit set-aside for each control period equal to ninety-eight (98) tons in 2009 and four Ilundred (400) tons in 2010 and thereafter (2) Tile**CAII~** designaled representative of such a CAIR NO ozone season unit may submilto Ihe department

a request, in a format specified by the department, to be 

### alioXcated CAIR NO ozone season allowances,
x

Dato: May 29,2008 8:0:l:53AM [J)l DIN: 2008Q528-IH·326080005PHA

### Indiana Register starting with the laterofthe control period in 2009 or the firstcontrol period afterthe control period in which the CAIR NO ozone season unit commences commercial operation and until the first control period forwhich the unit is all6cated CAIR NO ozone season allowances under subsection (e). Aseparate CAIR NO ozone
season allowance allocati2>n request for each control period for which CAIR NO allowances are §ought must be submitted on or before February 1 of such control period and afterthe date 6n which the CAIR NO ozone
season 

### unit commences commercial operation. x 

### (3) In aCAIR NO ozone season allowance allocation request undersubdivision (2), the CAIR designated representative m§y request for acontrol period CAIR NO ozone season allowances in an amount not exceeding the following for determining the total ozone season CAIR NO allocation:

(A) The target NO emission rate forallowance allocation purposes for'units that commence operation on or afterJanuary 1,2001, 

### shall be determined as the lesserof seventeen-hundredths (0.17) Ib/MMBtu orthe federally enforceable limit on NO emissions found in any applicable permit or rule forthe emissions unit, exceptthat a combined heat and'power unitwith an overall rated energy efficiency ofsixty percent (60%) or higher may request allowances based on seventeen-hundredths (0.17) Ib/MMBtu notwithstanding the allowable emission rat8. 

### (B) The maximum design heat input based NO rate allocation shall be tile product ofthe design heat input (Design HI), in million British thermal units per Rour (MMBtu/hr), mUltiplied bythree thousand six hundred seventy-two (3,672) hours multiplied by the target NO emission rate in clause (A), pound per million British thermal units per hour (lb/MMBtu), multiplied by fifty p1,rcent (50%), and divided bytwo thousand (2,000). The Design HI, in million British thermal units per hour (MMBtu/hr), shall be the value supplied to the U.S. EPA in the RT504 field ofthe quarterlyelectronic data report (EDR) as required in section 11 ofthis rule or equivalent quality assured and certified data. (C) The actual heat Input based NO rate allocation shall be the productofthe actual control period heat input mUltiplied by the target NO eri\ission rate in clause (A) divided bytwo thousand (2,000) where:

(i) the unit's actual control

### perio~ heat input shall be determined using one hundred twenty percent (120%) ofthe highest actual control period heat input recorded in the calendaryears, since the startup ofthe unit, immediately preceding the allocation year, notto exceed eight (8) years; and (ii) actual conlrol period heat input shall be based on the best available data for each control period reported in accordance with section 11 ofthis rule and 40 CFR Part 75'. (D) The total ozone season CAIR NO allocation that may be requested shall be the sum ofthe maximum design heat input based NO rate

### allo~ation and actual heat input based NO rate allocation. (4) The 

### department shall revie0 each CAIR NO ozone season allowance alloCation request undersubdivision (2) and shall allocate CAIR NO ozone season §lIowances for each control period pursuantto such request as follows: x 

### (A) The department shall accept an allowance allocation request only ifthe request meets, or is adjusted by the departmentas necessaryto meet, the requirements of subdivisions (2) and (3). (8) On orafter February 1 ofthe control period, the department shall determine the sum ofthe CAIR NO

ozone season allowances requested, as adjusted underclause (A), in all allowance allocation requests ' accepted underclause (A) forthe control period. (C) Ifthe amount of CAIR NO ozone season allowances in the new unitset-aside forthe control period is


# , greaterthan orequal to the sum underclause (B), then the 

### department shall allocate the amount ofCAIR NO ozone season allowances requested, as adjusted underclause (A), to each CAIR NO ozone season uni(covered by an allowance allocation request accepted underclause (A). ' (D) Ifthe new unitset-aside fortile control period forwhich NO, allowances are requested has an amount of NO allowances less than the number requested, as adjusted underclause (A), butthe energy efficiency anJrenewable energy allocation set-aside or hardship set-aside for large affected units is under-subscribed, the department shall allocate the amount ofthe NO allowances requested with the difference allocated from the energy efficiencyand renewable energy 

### allocation or hardship set-aside. (E) 

### Ifthe new unit set-aside for the control period forwhich NO allowances are requested has an amount of NO allowances less than the number requested, as adjusted Jnderclause (A), and the energy efficiency ancfrenewable energyallocation set-aside or hardship set-aside for large affected units is

### over~subscribed, the department shall allocate the allocation set-aside on a pro rata Ilasis, multiplied by the amount of CAIR NO ozone season allowances in the new unitset-aside forthe control period, divided by 

### the sum determined underclause (8), and rounded to the nearestwhole allowance as appropriate, (F) The department shall notify each**CAlr~** designAted representative that submitlnd an allowance allocation 

### request ofthe amount of CAIR NO ozone season allowances, 

### ifany, allocated forthe control period to the CAIR NO ozone season unit coveied by the request. (5) Large affected units commencing operation afterJanuary 1. 2001, and allocated allowances underthis subsection shall be eligible to receive allowances from the new unit set-aside until allocated allowances in accordance with the provisions of subsection (e). The inventoryof sources in subsection (e) sllall be updated prior to the allowance allocations in calendar yei::lr 2008 (for compliance years 2015-2020), in calendar year

Date: May 29,2008 H:03:53AM EDl DIN·**2008052e·II:';'·3)()()HO(J05F)I~fl.** Page 61Indiana Register
2014 (forcompliance years 2021-2026) and every six (6) years thereafter.

(h) If, after completion of the procedures undersubsections (f), (g), and (i) for a control period, any unallocated CAIR NO ozone season allowances remain in a new unit set-aside for the control period, the department shall allocate t6 each CAIR NO ozone season unitthat was allocated CAIR NO ozone season allowances under subsection (d) an amount1,fCAIR NO ozone season allowances equal to1he following: (1) For CAIR NO units under

### secti~n 1(a)(1), the total amount of such remaining unallocated CAIR NO ozone
season allowanc:',s, multiplied bythe unit's allocation under subsection (d), divided by forty-tllree thous§nd six hundred fifty-four (43,654) for a control period during 2009 through 2014, and thirty-eight thousand ninety-five (38,095) fora control period during 2015 and thereafter. (2) For large affected units, the total amount ofsuch remaining unallocated CAIR NO, ozone season allowances, multiplied bythe unit's allocation undersubsection (d), divided by eight thousand five hundred sixty-four (8,564) in 2009 and eight thousand seven hundred twenty-seven (8,727) in 2010 and thereafter.

(i) For projects tllat reduce NO emissions througll the implementation of energy efficiency or renewable energy measures, or both, implem'ented during a control period beginning May 1,2009, the department shall allocate NO allowances in accordance with the following procedures: (1) The €nergyefficiency and renewable energy allocation set-aside shall be allocated NO allowances equal to one thousand one hundred fifteen (1,115) tons in 2009 and five hundred (500) tons in 2010 and thereafter. (2) Any person may submit to the department a request, in writing, or in a format specified bythe department, for NO allowances as follows: (A) Sponsors ofenergy efficiency or renewable energy projects in section 2(38)(A) 2(40)(A) through 2(38)(H) 2(40)(H) ofthis rule may request the reservation of NO, allowances, for one (1) control period in which the project is implemented. Project sponsors may reapply each year, not to exceed five (5) control periods forenergy efficiency projects in sections 2(38)(A), 2(38)(13), 2(381fE+ 2(40)(A), 2(40)(8), 2(40)(E), and

## 2f'8J\FJ2(40)(F) ofthis rule and for an unlimited numberofyears for projects in sections 2(38)(G), 

### 2(38JfG+; 2(40)(C), 2(40)(0), and 2{-3&)(HJ 2(40)(H) oftllis rule. Requests for allowances may be made for projects implemented two (2) years before the effective date ofthis rule. Projects must equal at least one (1) ton of NO emissions and multiple projects may be aggregated into one (1) allowance allocation request to 

# .

. . equal one (1) or more tons of NO emissions. (6) The NO allowance allocation'request must be submitted by May 1 ofthe calendaryearforwhich the NO allowance allocation is requested. (Cj"n,e NO allowance allocation request for an integrated gasification combined cycle project under section 2fli)(G) 2(40)(G) ofthis rule must be submitted by May 1 ofthe calendaryearforwhich the NO allowance allocation is requested and afterthe date on which the department issues a permit to construEt the CAIR NO unit. For integrated gasification combined cycle projects, project sponsors may request the reservation

## ofNO allowances, based on the numberof kilowatt hours ofelectricity generated based on an eighty-five percent (85%) capacity factor and expectedlleat rate ofthe unit. Project sponsors may reapply each year, not to exceed five (5) control periods. Requests for allowances may be made only for integrated gasification combined cycle projects which first start commercial operations in 2009 and beyond. (3) tn a NO allowance allocation request made underthis subsection, the CAIR designated representative may requeit for a control period, NO allowances notto exceed the following: (A) Projects in section 

### 2(38)(P.) 2(40)(A) of this rule that claim allowances based upon reductions in the consumption ofelectricity and that are sponsored 

### by end-users or nonutilitythird parties receive allowances based upon the numberof kilowatt hours of electricity saved during a control period and the following formula: Allowances c (kWS x 0.0015)/2,000

Allowances kWS The numberof allowances awarded to a project 

### sponsm. The numberof kilowatt hours ofelectricity saved during an ozone control period by the project. (6) Projects in section 2(3&)(Aj 2(40)(A) ofthis rule that claim allowances based upon reductions in the consumption of electricity and lh8t are sponsored by electric generating units shall be awarded allowances according to the following formula: Where:

Aiiowances ::: (k\;VS x 

### 0.00075/2,000)

Allowances kWS := The numberofallowances awarded to a project sponsor. The number of kilowatt hours ofelectricitV saved during an ozone control period by the project. (C) Projects in section 2{;l&)\AJ 2(40)(A) of Ihis rule that claim allowances basecJ upon reductions in the consurnption of energy othel" than electricity and that are not CAIR NO ozone season units shall be 

# • Where:

Dale: May 29,2008 8:03:53AM [cn DIN: 20080528-IH-32G080005PI::;AIndiana Register

Where: Allowances Et1 Pt1 Et2 Pt2
NPt1 Where: Allowances Et1 Pt1 Et2 Pt2
NPt1 awarded allowances according to the following formula: Allowances (((Et1/Pt1)

- (Et2/Pt2)) x Pt2 x NPt2 x (NPt1/NPt2))/2,000

The numberofallowances awarded to a project sponsor. Energy consumed perozone control period before project implementation. Units of product produced perozone control period before project implementation. Energy consumed in the most recent ozone control period. Units of product produced in Ihe most recent ozone control period.
NO produced during the consumption ofenergy, measured in pounds permillion


# , British thermal units before project implementation.

NPt2 NO, produced during the consumption at energy, measured in pounds per million
British thermal units in the most recent ozone control period. (D) Projects in section**~\AJ** 2(40)(A) ofthis rule that claim allowances based upon reductions in the consumption of energy other than electricity and that are CAIR NO ozone season uilits shall be awarded allowances according to the following formula: x Allowances (((Et1/Pt1)

- (Et2/Pt2)) x Pt2 x NPt2 x (NPt1/NPt2) x 0.5)12,000

The numberofallowances awarded to a project sponsor. Energy consumed perozone control period before project implementation. Units of product produced perozone control period before project implementation. Energy consumed in the most recent ozone control period. Units ofproduct produced in the most recent ozone control period.
NO produced during the production process, measured in pounds per million
x British thermal units before project implementation.

NO CHP

x Where: NPt2

Allowances Allowances kWG

NO conventional


# , NOxproduced during the production process, measured in pounds per million
British thermal units in the most recent ozone control period.
Product produced, as used in the formulas in this clause and clause (C), may include manufactured items;
raw, intermediate, orfinal materials; orother products measured 

### in discrete units and produced as a result ofthe consumption ofenergy 

### in a specific process or piece ofequipment. Claims for allowances must include documentation of NO emissions per British thermal unit both before and after implementation ofthe projectforthe energy-consurYiing process for which energy savings are claimed. (E) Projects in section 2(28)(8) 2(40)(B) ofthis rule that claim allowances based upon highly efficient electricity generation using systems such as combined cycle, microturbines, and fuel cell systems forthe predominant use of asingle end user, that meetthe thresholds specified in section**~(BJ** 2(40)(8) ofthis rule, that are not CAIR NO ozone season units undersection 1 ofthis rule or large affected units as defined in section 2 ofthis rule, ana tllat are sponsored by end-users or nonutilitythird parties, receive allowances based upon the net amount of electricity generated during a control period and the following formula: Allowances (kWG x (0.0015

- NO, ))/2,000

The numberofallowances awarded to a project sponsor. The numberot net kilowatt hours ofelectricity generated during an ozone control period by the project.
NO The amount of NO produced during the generation ofelectricity, measured in


## , 

# , pounds per kilowatt hour. (F) Projects in section 2(28)(8) 2(40)(B) ofthis rule that claim allowances based upon highlyefficient combined heat and power systems forthe predominant use of a single end user, that meet the thresholds specified in section 2Gl8

## 1 (BJ 2(40)(8) ofthis rule, that are not CAIR NO ozone season units under section 1 ofthis rule or large affected units as defined in section 2ofthis rule,

### an~ tllat are sponsored by end-users or
nonutility t1lird parties, receive allowances based upon the net amount of energy generated and used during

an ozone control period and the following formula: Allowances (NO conventional- NO CHP)/2,000


# , , The numberofallowances awarded to a project sponsor. [(0.15 x 3,412 x kWG /034) + (0 17 x HeatOuti 0.8)) 

### 11,000,000 (Btuln x NO Rate)/1,OOO,OOO
x kWG :: The numberof net kilowatt hours of electricity generated during an ozone control period bythe project. ' Where:

Where:

Dale, May 28,2001) 1):03531\1,,1 ElY] DIN.200H0528·,IF<·32G080005r J!:.?!\Indiana Register
HeatOut =The numberofBritish thermal units (Btu) of heat orsteam effectively used for space, water, or industrial process heat during an ozone control period bythe project.
NO Rate = NO emitted during normal system operation by the project,


# , , measured in pounds per million Btu offuel input.
Btuln 

### = The numberof British thermal units (Btu) offuel used to produce electricity, heat, orsteam during an ozone control period by the project. (G) Projects in section 2(38)(8) 2(40)(8) and 2(38)(G) 2(40)(G) ofthis rule receive allowances based upon the numberof kilowatt hours ofelectricity each project generates during an ozone control period. Highly efficient electricity generation projects using systems such as combined cycle, microturbines, and fuel cell systems forthe predominant use ofa single end user, that meet a rated energy efficiencythreshold ofsixty percent (60%) for combined cycle systems and forty percent (40%) for microturbines and fuel cells; or integrated gasification combined cycle, and that are sponsored by NO allowance account holders that own
oroperate units that produce electricity and are subjectto the emissioA limitations ofthis rule receive allowances based upon the net amount of electricity generated during an ozone control period and the following formula: Allowances = (kWG x (0.0015

- NO) x 0.5)/2,000

Where: Allowances 

### = The numberofallowances awarded to aproject sponsor. kWG = The numberof net kilowatt hours ofelectricity generated during an ozone control period bythe project. NO .- The amount of NO produced during the generation of electricity, measured in


# , , pounds per kilowatt hour. (H) Projects in section 2(38)(C) 2(40)(C) and 2(38)(D) 2(40)(0) ofthis rule receive allowances based upon the numberof kilowatt hours ofelectricity eacll project generates during an ozone control period and according to the following formula: Allowances 

### = (kWG x 0.0015)/2,000

Allowances kWG 

### = The numberofallowances awarded to a project sponsor. The numberof kilowatt hours ofelectricity generated during an ozone control period bythe project. (I) Projects in section 2{3&)("),**2(38)(G),aR~\Fl2(40)(E)** through 2(40)(G) ofthis rule receive allowances based upon tile difference in emitted NO per megawatt hourofoperation for units before and after replacement or improvement and according to the following formula: Allowances = ((Et1

- Et2) x h) x0.5)/2,000 Where:

Where: Allowances The numberofallowances awarded to a project sponsor. Eti = The emission rate in pounds per megawatt hourof NO, ofthe unit before improvement or replacement.

Et2

_. The emission rate in pounds per megawatt hourof NOxofthe unit after improvement or replacement.
h :::: TI18 numberof megawatt hours ofoperation during the ozone control period. (J) Projects in seclion

## 2fl&1(A) 2(40)(A) ofthis rule that claim allowances based upon reductions in the consumption ofelectricity and that are large affected units shall be awarded allowances according to the following fornlula:

NO


# , Allowances kWS Where: Allowances = (kWS x NO x 0.5)/2,000)
x The numberof allowances awarded to a project sponsor. The numberof kilowatt hours ofelectricity saved during an ozone control period by tile proJect.
TI18 amount of NO produced during the generation ofelectricity, measured in
x pounds per kilowaltll0ur. (K) Projects in section 2{..3fr){Aj 2(40)(A) ofihis ruie based upon energy efficiency other than eieciriciiy savings shall be awarded allowances according to the following formula: Allowances = (NO F<ate x HeatOut/0.8)/1 ,000,000/2,000


# , Where: Allowances The numberof allowances awarded to a project sponsor. NO

xPate

- O.17Ib/MMBlu or the actual NOxemission rate, whichever is wealer.

Date May 29,200B**8:03~):l/\rv1** UYI DIN.**20()aW;28-IR-32G080005pr~/\**

### Indiana Register
HeatOut = 

### The numberof British thermal units (Btu) of heatorsteam effectively used for space, water, or industrial process heat during an ozone control penod bythe project. (L) Projects in section ;!(3&JfH) 

### 2(40)(H) ofthis rule using renewable energyto displace coal, natural gas, or oil combustion and reduce NO emissions shall be awarded allowances according to the following formula: Allowances = 

### ((0.17 x Fuel-lnput)/1 ,000,000)/2,000



### Where: Allowances The number of allowances awarded to aproject sponsor. Fuel-Input "" The amount of heat input, in Btu, from the renewable energy. (M) Projects in section 2(38)(8) 2(40)(B) ofthis rule that claim allowances based upon highlyefficient combined heat and powersystems forthe predominant use ofasingle end user, that meet the thresholds specified in section 2(38)(B) 2(40)(B) ofthis rule, that are large affected units as defined in section 2 ofthis rule, receive allowances based upon the net amount of energy generated and used during an ozone control period and the following formula: Allowances = 

### ((NO conventional

- NO CHP)/2,000) x 

### 0.5

, x 

### Where: Allowances = 

### TI18 numberofallowances awarded to a project sponsor. NO conventional [(0.15 x 

### 3,412 x 

### kWG 

### 10.34) +

### (0.17 x 

### HeatOut 

### 10.8)] / 1,000,000 

# , NO CHP (Btuln x NO Rate)/1,OOO,OOO
x x 

### Where: kWG =

### The numberof net kilowatt 110urs ofelectricity generated during an ozone control period bythe project. HeatOut 

### =The number ofBritish thermal units (Btu) ofheat or steam effectively used for space, water, or industrial process heat during an ozone control period bythe project. NO Rate = 

### NO emitted during normal system operation bythe project,

, x 

### measured in pounds per million Btu offuel input.
Btuln =

### The numberof British thermal units (Btu) offuel used to produce electricity, heat, orsteam during an ozone control period by tile project. (4) The departmentshall review, and reserve CAIR NO allowances pursuant to, each allowance allocation
x 

### request by July 31 each yearas follows:

(A) Upon receipt ofthe NO allowance allocation request, tile department shall make any necessary adjustments to the request'\o ensure that the number ofallowances specified in the request is consistent with the requirements ofsubdivision (3). (B) Ifthe energy efficiency and renewable energy allocation set-aside forthe control period forwhich NO allowances are requested has an amount of NO allowances greaterthan orequal to the number requesfed,

as adjusted underclause (A), the departmentshall reserve tile amount oftile NO allowances requested, as adjusted underclause (A), to the energy efficiencyand renewable energy project§. (C) Iftile energy efficiencyand renewable energyaliocation set-aside forthe ozone control period forwhich NO allowances are requested has an amount of NO allowances less than the number requested, as adjGsted underclause (A), but the new unit set-aside'or hardship set-aside for large affected units is under-subscribed, the departmentshall reserve the amount ofthe NO allowances requested with tile difference reserved from the new unitor hardship set-aside. x (D) Ifthe energy efficiency and renewable energy allocation set-aside forthe ozone control period for which NO allowances are requested has an amount of NO allowances less than the number requested, as adjGsted underclause (A), and the new unitset-aside' and hardship set-aside for large affected units are over-subscribed, the department shall reserve the allocation set-aside on a pro rala basis, except that allowances requested for projects under section 2(38)(A), 2(38)(G), 2(38)(.Qt; 2(40)(A), 2(40)(C), 2(40)(0), and 2(38)(H) 2(40)(H) oftilis rule shall be reserved first, reserved for projects under section 2(38)(8) 2(40)(B) and 2(38)(G) 2(40)(G) ofthis rule second, reserved for projects undersection 2(38)(EO) 2(40)(E) of this rule third, and reserved for projects undersection 2f3S1(f'.) 

### 2(40)(F) ofthis rule fourth. (E) Any unreserved allowances shall be distributed as follows:

(i) Fifty percent (50%) ofthe unreserved allowances shall be retained by the state to fund awant program for energy efficiency and renewable energy projects. The grant progl'al11 projects do not need to meet the

one (1) 

### tons of NO

.. 

### emissions for singularoraggregated projects under subdivision (2). The unreserved NO allowances sllall be deposited in a general allowance account established in accordance with this rule by 

### tile Indiana office of energy and defense development in accordance with the allowance allocation requirements ofthis rule, subjectto the following:

(AA) The Indiana office ofenergy and defense development shall deposit revenue from the sale of unreserved NO allowances in adedicated general NO account established by the5{,'>""H-.fJes this rule used exclusively to

### p~ovide matching grant funds for energy &fficiency and renewable energy projects,

Dille: May 29,2008 8:03:53AM EDT DIN:**200a0528-lr~-326(J(30005PF\A** PagG 65Indiana Register including, but not limited to, the purchase and installation ofalternative energy systems and programs to support energy efficiency projects. 

### (66) The Indiana office ofenergy and defense development shall hold the unreserved NO allowances in

ageneral NO account until such time that project(s) are approved for grant funding, at whlch time NO allowances

### s~all be sold to provide cash dollars for the grant funding. ' (CC) Revenue from the sale of unreserved NO allowances held bythe state of Indiana through the Indiana office ofenergy and defense developm'ent shall not revert to the state general fund, and shall only be used to provide matching grant funds for the installation ofenergy efficiency and renewable energy projects as defined in this subsection. (DO) Effective November 1, 2009, and annually thereafter, the Indiana office ofenergy and defense development shall provide a report to the commissionerand the air pollution control board regarding the allowance transaction activity and the distribution and the balance ofthe matching grant funds for energy efficiency and renewable energy projects during that period. At a minimum, the report shall contain the following:

(aa) The numberof NO allowances currently held in general NO account(s) bythe Indiana office of


# , , energy and defense development. (bb) A summary oftransactions in the market, including the date(s) oftransactions, the numberof allowances transacted, and the distribution of proceeds from transactions (including brokerage fees). (cc) The distribution ofgrantfunding by recipient. (dd) A full description oftype of project(s) funded. (ee) A summary ofthe benefits of each project. (EE) Ifat any time after November 1, 2009, the total numberof unreserved ozone season NO allowances held by the Indiana office of energy and defense development is greaterthan five hundred (56'0) tons, fifty percent (50%) ofthe total amount of NO allowances shall be returned to the departmentfor redistribution to existing large affected units on a pro

### r1ta basis. (ii) Fifty percent (50%) ofthe unreserved allowances shall be returned to existing large affected units on a pro rata basis. (5) Afterthe completion ofthe control period for which CAIR ozone season NO allowances had been reserved, the project sponsorshall submit the results ofthe actual savings or g'8neration by October 31 ofthat year. Allowances shall be awarded only afterverification of project implementation and certification ofenergy, emission, or electricity savings, as appropriate. The department shall consult the Indiana office ofenergy and defense development concerning verification and certification. (6) The department shall allocate the appropriate amount of CAIR NO allowances based on the review ofthe submittal ofactual savings or generation resulls under subdivision (5)'and notify the CAIR NO designated representative that submitted the request and tile U.S. EPA oftile numberof NO allowances'allocated for the control period by March 31 ofeach year. Any person to whom the department all6cates NO allowances shall establish a general account undersection 9(b) of lhis rule. x



### U) The department shall make available CAIR NO ozone season allowances from tile hardsllip set-aside for large affected units undersection 1(a)(2) ofthis rule. The amount of CAIR NO ozone season allowances in tile set-aside shall equal one hundred fifty (150) tons in 2010 and thereaftel·. The aepartment shall allocate CAIR NOx ozone season allowances as follows:

. (1) The CAIR NO designated representative shall sullmit a request by May 1 ofthe yearfor which CAIR NO

ozone season

### allc~wances are needed that includes the following: x (A) A demonstration that compliance with this rule absent hardship allowances could pose an unacceptable risk eitherto the source's own operation or its associated industry. (B) A demonstration that the cost of corrlpliance with the requirements in lhis rule will not be cost-effective without an allocation of hardship allowances. The owner oroperatorcan show that it meets this cost factor

### jf the unit's average cost of seasonal compliance with requirements in this rule will exceed two thousand four hundred dollars ($2,400) perton of NO reduced. Such a showing can be based on cost methodology assessments or engineering studies

### wt~ich are reliably indicative of NO compliance costs for these entities, including data produced through the use of the US. EPAAir Pollution Control Cost Manual. (2) Ifthe hardsllip set-aside for the control period forwhich NO ozone season allowances are requested has


# .

. . an amount of NO allowances less than the number requested, but the energy effiCiency and renewable energy ailocalion\el-aside or new unil sel-aside for iarge aHecied unils is under-subscribed, lhe deparlmenl shall allocate the amount ofthe NO ozone season allowances requested with the difference allocated from the energy efficiency and renewabl& energy allocation or new unit set-aside. (3) Ifthe hardship set-aside for the control period for Wllich NO ozone season allowances are requested has

an 81llOunt of NO allowances less than the number mquestedx and the energy efficiency and renewable energy set-aside or new unit set-aside for large affected units is over-subscribed, the department shall allocate

Date: May 29,200S 8:03:53/\M ED"l DIN:**200a0528·IH<l2608000~)f)f~A** Page 66Indiana Register
NO allowances from the hardship set-aside on a pro rata basis. (4) Any unallocated allowances shall be distributed to existing large affected units on a pro rata basis. (5) Any transferofallowances underthis subsection shall be submitted to U.S. EPA byJuly 31 ofeach year.

'These documents are incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitol Street NW, Washington, D.C. 20401 orare available for review and copying at the Indiana Department of Environmental Management, Office ofAir Quality, Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204. 

### (AirPollution ControlBoard;

### 326 lAC

### 24-3-8; filedJan 26,2007,10:25a.m.: 

### 20070221-IR-326050117FRA!

SECTION 14. 326 lAC 24,3-9 IS AMENDED TO READ AS FOLLOWS

326 lAC 24-3-9 CAIR NO, ozone season allowance tracking system

Authority: 

### !.\;..U:1'!:!!; !kJ.J.:17-3:4; fC.J;?:.1Z.:.3:JJ Affected: IC 1.3:.12; ICJ.3:J.7

Sec. 9. (a) Except as provided in section 12(f)(7) ofthis rule, upon receipt ofa complete certificate of representation undersection 6(h) ofthis rule, the U.S. EPAwill establish a compliance account for the CAIR NO

ozone season source forwhich the certificate of representation was submitted unless the source already has a x compliance account.

(b) Any person may applyto open ageneral account for the purpose ofholding and transferring CAIR NO

ozone season allowances. An application for a general account may designate one (1) and only one (1) CAIR authorized account representative and one (1) and only one (1) alternate CAIR authorized account representative who may acton behalf ofthe CAIR authorized account representative. The agreement bywhich the alternate CAIR authorized account representative is selected shall include a procedure for authorizing the alternate CAIR authorized account representative to acl in lieu ofthe CAIR authorized account representative. The establishment ofthe general account shall be subject to the following: (1) A complete application fora general account shalt be submitted to the U.S. EPA and shall include the following elements in a format prescribed by the U.S. EPA: (A) The following information concerning Ihe CAIR authorized account representative and any alternate CAIR aUlhorized account representative:

(i) Name. (ii) Mailing address. (iii) E-mail address, if any. (iv) Telephone number. (v) Facsimile transmission number, ifany, (B) Organization name and type of organization, ifapplicable. (C) A list of all persons subject to a binding agreement for the CAtR authorized account representative and any alternate CAIR authorized account representative to represent their ownership interestwith respect to the CAIR NO ozone season allowances held in the general account. (D) The foll00ing certification statement by the CAIR'authorized account representative and any alternate CAIR 8uthmized account representative: "I certify that j was selected as the CAIR authorized account representative or the alternate CAJR authorized account representative, as applicable, by an agreement that is binding on all persons who have an ownership interestwith respect to CAIR NO ozone season allowances held in the general account. I certifythat I have all the necessaryauth6rityto carry out my duties and responsibilities under the CAIR NO ozone season trading program on behalfof SUCll persons and that each such person shall be fully bound

# by my representations, actions, inactions, orsubmissions and by any orderordeCision issued to me bytl1e U.S. EPA or acourt regarding the general account.". (E) The signature ofthe CAIR authorized account representative and any alternate CAIR authorized account representative and the dales**si~Jned** (F) Unless otherwise reqUired by the departmenl orthe U.S. EPA, documents of agreement referred to in the application for ageneral account shall not be submilted to the department ortl1e U.S. EPA. Neitherthe department nortl1e U.S. EPA shall be under any obligation to review or evaluate the sufficiency of such documents, 

### ifsubmitted. (2) Upon receipt bythe U.S EPA ofa complete application tor agenoral account undersubdivision (1), the following shall apply:

Date May 29,2008 8:03:53AM Em DIN:**200B()~)2g-II~<)260e0005PF~A** Page 67Indiana Register (A) The U.S. EPAwill establish ageneral accountforthe person orpersons forwhom the application is submitted. (B) The CAIR authorized account representative and any alternate CAIR authorized account representative forthe general account shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each person who has an ownership interestwith respect to CAIR NO ozone
season allowances held In the general account in all matters pertaining to the CAIR NO ozone'season trading program, notwithstanding any agreement between the CAIR authorized account'representative or any alternate CAIR authorized account representative and such person. Any such person shall be bound by any orderordecision issued to the CAIR authorized account representative orany alternate CAIR authorized account representative by the U.S. EPAOr acourt regarding the general account. (C) Any representation, action, inaction, orsubmission by any alternate CAIR authorized account representative shall be deemed to be a representation, action, inaction, orsubmission by the CAIR authorized account representative. (0) Each submission concerning the general account shall be submitted, signed, and certified bythe CAIR authorized account representative orany alternate CAIR authorized account representative forthe persons having an ownership interestwith respect to CAIR NO ozone season allowances held in the general account. Each such submission shall include the follov0ing certification statement by the CAIR authorized account representative orany alternate CAIR authorized account representative: "I am authorized to make this submission on behalfofthe persons Ilaving an ownership interestwith respect to the CAIR NO ozone
season allowances held in the general account. I certify under penalty of lawthat I have personally' examined, and am familiar with, tile statements and information submitted in this document and all its attachments. Based on my inquiryofthose individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belieftrue, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information oromitting required statements and information, including the possibility offine or imprisonment.". (E) The U.S. EPAwill accept oract on a submission concerning the general account only ifthe submission has been made, signed, and certified in accordance with clause (0). (3) The fotlowing shall applyto changing the CAIR authorized account representative oralternate CAIR authorized account representative, and changes in persons with ownership interest:

(A) The CAIR autllOrized account representative for a general account may be changed at anytime upon receipt bythe U.S. EPA ofa superseding complete application for ageneral account undersubsection (b)(1). Notwithstanding any such change, all representations, actions, inactions, and submissions bythe previous CAIR autl10rized account representative before the time and date when the U.S. EPA receives the superseding application for a general account shall be binding on the new CAIR authorized account representative and the persons with an ownership interestwith respect to the CAIR NO ozone season

. 

# , allowances In the general account. (B) The alternate CAIR authorized account representative for ageneral account may be changed at any time upon receipt bythe U.S. EPA ofa superseding complete application for a general account under subsection (b)(1). Notwitl1standing any such change, all representations, actions, inactions, and submissions bythe previous alternate CAIR authorized account representative before the time and date when the U.S. EPA receives tile superseding application for ageneral account shall be Ilinding on the new alternate CAIR authorized account representative and the persons with an ownership interestwith respect to the CAIR NO ozone season allowances in the general account. (C) In the event'a person having an ownership interestwith respect to CAIR NO ozone season allowances in the general account is not included in the list ofsuch persons in the

### applicatio~ for a general account, such person shall be deemed to be sUbject to and bound 

### by the application for a general account, the representation, actions, inactions, and submissions ofthe CAIR authorized account representative and any alternate CAIR authorized account representative ofthe account, and the decisions and orders ofthe U.S. EPAora court, as ifthe person were included in sucl1list. (0) Within thirly (30) days following any change in the persons having an ownership interest with respect to CAIR NO ozone season allowances in the general account, including the addition of a new person, the CAIR

### aut~orized account representative orany alternate CAIR authorized account representative shall submit a revision to the application for ageneral account amending the list of persons having an ownership interest with rosoect to the CAIR NO ozone season allowances in the (Jeneral account to include the



## ., change. (4) Once a complete application for a general account undersubdivision (1) has been submitted and received, the U.S. EPAwill rely on the application unless and until a superseding complete application for a general account undersubdivision (1) is received by the U.S. EPA. (5) Except as provided in subdivision (3)(A) or (3)(B), no objection orothercommunication submitted to tile U.S. EPA concerning the authorization, orany representation, action, inaction, orsubmission ofthe**CAIf~**

Date: May 29.200B 8:03:53AM L::m DIN:**20080528·lr~·3260HOOO!)Pf~A P<l~JC**  68Indiana Register
authorized account representative orany alternate CAIR authorized account representative for ageneral account shall affect any representation, action, inaction, orsubmission ofthe CAIR authorized account representative orany alternate CAIR authorized account representative orthe finality ofany decision ororder bythe U.S. EPA underthe CAIR NO ozone season trading program. (6) The U.S. EPAwill not adjudicate 1my private legal dispute concerning the authorization or any representation, action, inaction, orsubmission ofthe CAIR authorized account representative orany alternative CA!R authorized account representative for a general account, including private legal disputes concerning the proceeds ofCAIR NO ozone season allowance transfers. (I) The following shall apply to delega'tion bythe CAIR authorized account representative and alternate CAIR authorized account representative:

(A) A CAIR authorized account representative may delegate, to one (1) or more natural persons, his or her authority to make an electronic submission to the U.S. EPA provided for or required undersections 9 and 10 ofthis rule. (B) An alternate CAIR authorized account representative may delegate, to one (1) or more natural persons, his or herautllOrity to make an electronic submission to the U.S. EPA provided for or required under sections 9 and 10 ofthis rule. (C) In orderto delegate authorityto make an electronic submission to the U.S. EPA in accordance with clause (A) or (B), the CAIR authorized account representative orthe alternate CAIR authorized account representative, as appropriate, must submit to the U.S. EPA a notice ofdelegation, in a format prescribed bythe U.S. EPA, that includes the following elements:

(i) The name, address, e-mail address, telephone number, and facsimile transmission number, ifany, of the following:

(AA) The CAIR authorized account representative or alternate CAIR authorized account representative. (BB) Each natural person, referred to as an "agent". (ii) Foreach such natural person, a list ofthe type ortypes ofelectronic submissions underclause (A) or (B) forwhich authority is delegated to him or her. (iii) The following certification statements by such CAIR authorized account representative or alternate CAIR authorized account representative:

(AA) "I agree that any electronic submission to the U.S. EPA that is by an agent identified in this notice of delegation and ofa type listed for such agent in this notice of delegation and that is made when I am a CAIR authorized account representative oralternate CAIR authorized representative, as appropriate, and before this notice ofdelegation is superseded by another notice ofdelegation under326 lAC 24-3- 2(b)(7)(0) shall be deemed to be an electronic submission by me.". (B8) "Until this notice ofdelegation is superseded by another notice ofdelegation under326 lAC 24-3- 2(b)(7)(0), I agree to maintain an e-mail account and to notify the U.S. EPA immediately of any change in my e-mail address unless all delegation ofauthority by me under326 lAC 24-3-9(b)(7) is terminated.". (0) A notice of delegation submitted underclause (C) shall be effective, with regard to the CAIR authorized account representative or alternate CAIR authorized account representative identified in such notice, upon receipt of such notice bythe U.S. EPA and until receipt by the U.S. EPA of asuperseding notice of delegation slJilmitted by such CAIR authorized account representative or alternate CAIR authorized account representative, as appropriate. The superseding notice ofdelegation may replace any previously identified agent, add a new agent, or eliminate entirely any delegation ofauthority. (E) Any electronic submission covered by the certification in clause (C)(iii)(AA) and made in accordance with

a notice of delegation effective underclause (D) shall be deemed to be an electronic submission by the CAIR authorized account representative oralternate CAIR authorized account representative submitting such notice ofdelegation.

(c) The US. EPAwill assign a unique identifying number to each account establislled undersubsection (a) or (b)

(d) Following the establishment of a CAIR NO, ozone season allowance tracking system account, all submissions to the U.S. EPA pertaining to the account, including, but not limited to, submissions concerning the deduction or lransfel" ofCAIR NO ozone season allowances in the account, shall be made only by the CAIR authorized account repl-esentalive for the account.

(e) By September30,200'1, the U.S. EPAwill record in the CAIR NO ozone season source's compliance account the

### CAIF~ NO ozone season allowances allocated for the

### CAIR~O ozolle season units at the source,
as submitted by the d6partment in accordance willl section 8(b)(1)(A) ofthis',-ule. for the control periods in 2010. 2011,2012,2013, and 2014.

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(f) By December 1,2008, and December 1 every six (6) years thereafter, the U.S. EPAwill record in the CAIR NO ozone season source's compliance account the CAIR NO ozone season allowances allocated for the CAIR No' ozone season units at the source, as submitted bythe department in accordance with section 8(b)(1)(B) of this"ule, for the control periods seven (7), eight (8), nine (9), ten (10), eleven (11), and twelve (12) years after Ihe yearofthe allowance allocation.

(g) By September 1,2009, and September 1 ateach yearthereafter, the U.S. EPAwill record in the CAIR NO

ozone season source's compliance account the CAIR NO ozone season allowances allocated for the CAIR NO x
ozone season units at the source, as submitted by Ihe department in accordance with section 8(b)(1 )(C) ofthis' rule, for the control period in the year ofthe applicable deadline for recordation underthis subsection.

(h) When recording the allocation ofCAIR NO ozone season allowances for a CAIR NO ozone season unit in a compliance account, the U.S. EPAwill assign'each CAIR NO ozone season allowance'a unique identification numberthat shall include digits identifying the year

# 01 the control period for Wllich the CAIR NO

ozone season allowance is allocated. x

(i) The CAIR NO ozone season allowances are available to be deducted for compliance with asource's CAIR NO ozone season

### ~missions limitation for a control period in a given calendaryear only ifthe CAIR NO ozone sea:Son allowances: x (1) were allocated forthe control period in the year or a prioryear; and (2) are held in the compliance account as of Ihe allowance transfer deadline for the control period or are transferred into the compliance account by aCAIR NO ozone season allowance transfer correctly submitted for recordation undersection 10(a) through10(d) ofthig rule by the allowance transfer deadline forthe control period.



### U) The following shall applyto deductions for purposes of compliance with a source's emissions limitation: (1) Following the recordation, in accordance with section 1Orb) and 1O(c) ofthis rule, of CAIR NO ozone

season allowance transfers submitted for recordation in a source's compliance account 

### by the allbwance transfer deadline for acontrol period, the U.S. EPAwill deductfrom the compliance account CAIR NO ozone

season allowances available undersubsection (i) in orderto determine whetherthe source meets the tAIR NO ozone season emissions limitation forthe control period in one (1) ofthe following ways:

(A) Until the amount of CAIR NO ozone season allowances deducted equals the numberoftons oftotal nitrogen oxides emissions, deterinined in accordance with section 11 ofthis rule, from all CAIR NO ozone
season units at the source for the control period. x (B) Ifthere are insufficient CAIR NO ozone season allowances to complete the deductions in clause (A), until no more CAIR NO ozone seas'On allowances available undersubsection (i) remain in the compliance account. x (2) The CAIR authorized account representative for a source's COllipliance account may request that specific CAIR NO ozone season allowances, identified by serial number, in the compliance account be deducted for emission€or excess emissions for a control period in accordance with subdivision (1) or (4).

## 6f--f&t Such request shall be submitted to the U.S. EPA by the allowance transferdeadline for the control period and include, in aformat prescribed by the U.S. EPA, the identification ofthe CAIR NO ozone season source and the appropriate serial numbers. x (3) The U.S EPAwill deduct CAIR NO ozone season allowances under subdivision (1) or (4) ef-{&) from the source's compliance account, in the

### ab~ence of an identification or in the case of a partial identification of CAIR NO ozone season allowances by serial number under subdivision (2), on afirst-in, first-out (FIFO) accounting basis in the following order: (A) Any CAIR NO ozone season allowances that were allocated to

### tt18 units at the source, in the orderof recordation, x (B) Any CAIR NO ozone season allowances that wel'e allocated to any entity and transferred and recorded in the compliancexaccaunt undersection 

### 10 ofthis rule, in the orderof recordation. (4) After making the deductions for compliance under subdivision (1) for a control period in acalendar year in It/hich the C/\!R f'JO ozone season source has excess emissions, the U.S. EPA will deduct from the source's compliance accountan amount of CAIR NO ozone season allowances, allocated for the control period in the immediately following calendaryear, equal to three (3) times the numberoftons ofthe source's excess emissions. (5) My allowance deduction required undersubdivision (4) shall nol affect tile liability ofthe owners and operators ofthe CAIR NO ozone season source or the CAIR NO ozone season units at the source forany fine, penalty, or assessmeXnt, ortheir

### obli~Jation to comply with anyother remedy, for the same violations, as

Data: M,ly 29,2008 i3:03:53AM EDT DIN:**?008052B·IH-32G080005IJI~A**Indiana Register
ordered underthe Clean AirAct or applicable state law. (6) The U.S. EPAwill record in the appropriate compliance account all deductions from such an account under subdivisiefl subdivisions (1), (4), and (5) and section 12 ofthis rule. (7) The U.S. EPA may review and conduct independent audits concerning any submission under the CAIR NOxozone season trading program and make appropriate adjustments ofthe information in the submissions. (8) The U.S. EPA may deduct CAIR NO ozone season allowances from ortransfer CAIR NO ozone season allowances to asource's compliance acfount based on the information in the submissions, asXadjusled under subdivision (7), and record such deductions and transfers.

(k) CAIR NO ozone season allowances may be banked for future use or Iransfer in acompliance accounl ora general account'Any CAIR NO ozone season allowance that is held in acompliance account ora general account shall remain in such ac:Count unless and until the CAIR NO ozone season allowance is deducted or transferred undersubsection (i), (j), or (I) orsection 10 or 12 ofthis rule.

(I) The U.S. EPA may, at its sale discretion and on its own motion, correct any error in any CAIR NO ozone s8_ason allowance tracking systen1 account. Within ten (10) business days ofmaking such correction,

### th~ U,S. EPAwill notify the CAIR authorized account representative for the account.

(m) The CAIR authorized account representative of ageneral account may submit to the U.S. EPA a request to close the account, which shall include acorrectly submitted allowance transfer under section 10(a) through 10(d) ofthis rule for any CAIR NO ozone season allowances in the account to one (1) or more other CAIR NO 

### I . x , ozone season a lowance tracking system accounts.

(n) Ifa general account llas no allowance transfers in orout ofthe account for a twelve (12) month period or longerand does not contain any CAIR NO ozone season allowances, the U.S. EPA may notifythe CAIR authorized account representative for the 5ccount that the account will be closed following twenty (20) business days afterthe notice is sent. The account will be closed afterthe twenty (20) day period unless, before the end of the twenty (20) day period, the U.S. EPA receives acorrectly submitted transfer ofCAIR NO ozone season allowances into the account under section 10(a) through 10(d) ofthis rule ora statement subxmitled bythe CAIR authorized account representative demonstrating to the satisfaction ofthe U.S. EPA good cause as to why the account should not be closed. (AirPollution Conlrol Board; 326jf1C 24-3-9; filedJan 26,2007,10:25 a.m.: 20070221-IR-326050117FRA!

SECTION 15. ;326 lAC 24,;3.:.1.2. IS AMENDED TO READ AS FOLLOWS

326 lAC 24-3-12 CAIR NO, ozone season opt-in units Authority:**!~_13~14,a;** IC 13-:!I,3-4; IC 13-17-3-11 Affected: jL13-15; IC 13:1I

Sec. 12. (a) A CAIR NO, ozone season opt-in unit must be a unit that meets tile following requirements: (1) Is located in Indiana. (2) Is not a CAIR NO ozone season unit undersection 1 ofthis rule and is not covered by a retired unil exemplion under

### sedion 3 ofthis rule that is in effect. (3) Is nol covered by a retired unil exemption under40 CFR 72.S' that is in effect. (4) Has or is required orqualified to have a Part 70 operating permit or otherfederally enforceable perrni!. (5) Vents all of its NOxemissions to astack and can meetthe**monitorin~J,** record keeping, and reporting requirements of section 

### 11 ofthis rule.

(b) Except as otl1erwise provided sections 1, 2, 4 through 7, and 9 tl1rough 11 ofthis rule, a CAIR NO ozone
season opt-in unit shall be treated as a CAIR

### ~~O Ozone season unit for purposes ofapplying sections

## ofthis rule. x

(c) Solely fm purposes of applyin,), as provided in this section, the I'equireillonts of section 11 ofthiS rule to a unit for which a CAIR opt-in permit application is 

### subrTlitted and notwithdrawn and a CAIR**opt~in** pennil is notyet issued ordenied under this section, such unit shall be treated as a CAIR NO ozone season unit before Issuance


# ,

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ofa CAIR opt-in permitfor such unit.

(d) Any CAIR NO opt-in unit, and any unit forwhich a CAIR opt-in permit application is submitted and not withdrawn and a

## CAI~ opt-in permit is notyet issued ordenied underthis section, located atthe same source as
one (1) or more CAIR NO ozone season units shall have the same CAIR designated representative and alternate CAIR designated represeAtative as such CAIR NO ozone season units.


# ,
(e) The CAIR designated representative of a unit meeting the requirements for a CAfR NO ozone season opt-in unit in subsection (a) may apply foran initial CAIR opt-in permit at any lime, excepl as p'rovided under subsection (h)(8) and (h)(9), and, in orderto apply, must submitthe following: (1) Acomplete CAIR permit application undersection 7(c) ofthis rule. (2) Acertification, in a format specified bythe department, that the unit:

(A) is not a CAIR NO ozone season unit undersection 1 ofthis rule and is not covered by a retired unit exemption undersecnon 3 ofthis rule that is in effect; (B) is not covered by a retired unit exemption under40 CFR 72.8' that is in effect; (C) vents all of its NO emissions to a stack; and (0) has documented I\eat inputfor more than eight hundred seventy-six (876) hours during the six (6) months immediately preceding submission ofthe CAIR permit application under section 7(c) ofthis rule. (3) A monitoring plan in accordance with section 11 of IIlis rule. (4) A complete certificate of representation undersection 6(h) ofthis rule consistent with subsection (d), ifno CAIR designated representative has been previously designated forthe source that includes the unit. (5) A statement, in a format specified by the department, whelherthe CAIR designated representative requests that the unit be allocated CAIR NO ozone season allowances undersubsection U)(3) or U)(4), subjectto the conditions in subsections (f)(10) and (h)(8). Ifallocation undersubsection (j)(4) is requested, this statement shall include a statementthat the owners and operators ofthe unit intend to repowerthe unit before January 1, 2015, and that they will provide, upon request, documentation demonstrating such intent. The CAIR designated representative ofa CAIR NO ozone season opt-in unit shall submit a complete CAIR permit application undersection 7(c) ofthis rule to (enewthe CAIR NO ozone season opt-in unit permit in accordance willl the department's regulations for Part 70 operating perinits, orthe department's regulations for otherfederally enforceable permits ifapplicable, addressing permit renewal. Unless the department issues a notification ofacceptance ofwithdrawal ofthe CAIR NO ozone season opt-in unitfrom the CAIR NO ozone
season trading program in accordance with subsection

## (h) orthe unit becomes a CAIR NO ozone sexason unit under section 1 ofthis rule, the CAIR NO ozone season opt-in unit shall remain subjectto1he requirements for a CAIR NO ozone season opt-in unit,

### eve~ ifthe CAIR designated representative forthe CAIR NO ozone season opt-in unifrails to submit a CAIR permit application that is required for renewal ofthe CAtR opt-inpermit.

(f) The department shall issue ordenya CAIR opt-in permitfor a unit for which an initial application for a CAIR opt-in permit undersubsection (e) is submitted in accordance with the following: (1) The department and the U.S. EPAwill determine, on an interim basis, the sufficiency ofthe monitoring plan accompanying the initial application for a CAIR opt-in permit undersubsection (8). A monitoring plan is sufficient, forpurposes of interim review, ifthe plan appears to contain information demonstrating that the NO emissions rate and heat input ofthe unit and all otherapplicable parameters are monitored and reported in x accordance with section 11 ofthis rule. A determination ofsufficiency shall not be construed as acceptance Qr approval ofthe monitoring plan. (2) Ifthe department and the U.S. EPAdetermine that the monitoring plan is sufficient undersubdivision (1), the owner oroperatorshall rnonitor and report the NO emissions rate and the heat input ofthe unit and all otherapplicable parameters, in accordance with secti6n 11 ofthis rule, starting on the date ofcertification of the appropriate monitoring systems under section 11 ofthis rule and continuing until a CAIR opt-in permit is denied under subdivision (8) or, ifa CAIR opt-in permit is issued, the date and time when the unit is withdrawn frorn the CAIR NO ozone season trading program in accordance with subsection (h). (3) The monitoring'and reporting under subdivision (2) shall include the entire control period immediately before the date on which the unit enters the CAIR NO ozone season trading program undersubdivision (9), during which period monitoring system availability mu§t not be less than ninety percent (90%) undersection 11 ofthis rule and Hie unit must be in full compliance "vvith aiiY applicable state orfederal emissions or emissions-related requirements. (4) To the extent the NO emissions rate and the heat input ofthe unit are monitored and reported in accordance with sectionx 11 ofthis rule for one (1) or more control periods, in addition to the control period under subdivision (3),**durin~J** which control periods**monitorin~)** system availability is not less Ulan ninety percent (901

### %) undersection 11 ofthis rule and the unit is in full compliance with any applicable state or federal emissions or**emissions~related** requirements and which control periods begin not more than three (3)

Dale May 29,20013 il0353AM**[~OT** DIN.**2008052H·IH-32GOBOOO[)PI~A**Indiana Register
years before the unit enters the CAIR NO ozone season trading program undersubdivision (9), such information shall be used as provided in s'Ubdivlsions (5) and (6). (5) The unit's baseline heat input shall equal one (1) ofthe following:

(A) Ifthe unit's NO emissions rate and heat input are monitored and reported foronly one (1) control period, in

### accorda~ce with subdivisions (2) and (3), the unit's total heat input, in million British thermal units (MMBtu), forthe control period. (B) Ifthe unit's NO emissions rate and heat input are monitored and reported for more tllan one (1) control period, in

### accorda~ce with subdivisions (2) through (4), the average ofthe amounts ofthe unit's total heat input, in million British Ihermal units (MMBtu), forthe control periods under subdivisions (3) and (4). (6) The unit's baseline NO emission rate shall equal one (1) ofthe following:

(A) Ifthe unit's NO emi§sions rate and heat input are monitored and reported for only one (1) control period, In

### accordal~ce with subdivisions (2) and (3), the unit's NO emissions rate, In pounds per million British thermal units (lb/MMBtu), forthe control period. ' (B) Ifthe unit's NO emissions rate and heal Inputare monitored and reported for more than one (1) control period, In

### accorda~ce with subdivisions (2) through (4), and the unit does not have add-on NO emission controls during any such control periods, the average ofthe amounts ofthe unit's NO

### emissio~s rate, in pounds per million British thermal units (lb/MMBtu), forthe control periods undersubdivisions (3) and (4). (C) Ifthe unit's NO emissions rate and heat Inputare monitored and reported for more than one (1) control period, in accordari'ce with subdivisions (2) through (4), and the unit 11asadd-on NO emission controls during any such control periods, the average ofthe amounts oftile unit's NO emlsslons rate, In pounds per million British thermal units (lb/MMBtu), forsuch control periods during which'the unit has add-on NO emission controls. x 

### (7) After calculating the baseline heat input and the baseline NO emissions rate forthe unit under SUbdivisions (5) and (6) and ifthe department determines that

### th~ CAIR designated representative shows that the unit meets the requirements fora CAIR NO ozone season opt-in unit In subsection (a) and meets the elements certified In subsection (e)(2), the dep§rtment shall issue a CAIR opt-in permit. The department shall provide a copy ofthe CAIR opt-in permitto the U.S. EPA, who will then establish acompliance accountforthe

source that includes the CAIR NOxozone season opt-in unit unless the source already has acompliance account. (8) Notwithstanding subdivisions (1) through (7), ifatany time before issuance ofa CAIR opt-in permitfortile unil, the departmentdetermines that Ihe CAIR designated representative fails to showthat the unit meets the requirements for a 

### CAIR NO ozone season opt-in unit in subsection (a) or meets the elements certified in subsection (e)(2), the departfnentshall Issue a denial of aCAIR NO ozone season opt-In permit forthe unit. (9) A unit forwhich an initial CAIR opt-in permit is issued bythe

### dep~rtment shall become aCAIR NO ozone
season opt-In unit, and a CAIR NO ozone season unit, as ofthe laterof May 1,2009, or May 1 ofthe'first control period during Wllich such CAIR opt-in permit is issued. (10) Ifthe CAIR designated representative requests, and the department Issues a CAIR opt-in permit providing for, allocation to a CAIR NO ozone season opt-in unit ofCAIR NO ozone season allowances under subsection m(4) and SUCll uAit is repowered after its date ofentry

### I~to the CAIR NO ozone season trading program undersubdivision (9), the repowered unit shall be lreated as aCAIR NO Slone season opt-in unit replacing the original CAIR NO ozone season opt-in unit, as ofthe date ofstart-u'p ofthe repowered unit's combustion chamber. Notwithstanding subdivisions (5) and (6), as ofthe date ofstart-up, Ihe repowered unit shall be deemed to have the same date ofcommencement ofoperation, date ofcommencement of commercia! operation, baseline heat input, and baseline NO ozone season emission rate as the original CAIR NO ozone season opt-in unit, and the original CAIR NO ozbne season opt-in unit shall no longerbe treated

as

# a CAIR NO ozone season opt-in unit ora CA!R NO

### ~zone season unit.


# , ,
(g) The following shall apply to the content ofeach CAlF, opt-in permit: (1) Each opt-in permit shall contain the following:

(A) All elements required for a complete CAIR permit application undersection 7(c) of IIlis rule. (8) The certification in subsection (e)(2) (C) The unit's baseline heat Input under subsection (f)(5). (0) The unit's baseline NO ozone season emission rate under subsection (f)(6). (E) A statemenI whetherth'e unit is 10 be allocated CAIR NO ozone season allowances under subsection (j)(3) 

### or (j)(4), suiJjecllo the condilions in subsections 

### (r)(10(and (h)(8). (F) A statemenl that the unit maywithdraw from Ihe CAIR NO ozone season trading program only in accordance with subsection (h). ' (G) A statement that the unit is subject to, and the owners and operators ofthe unit must comply with the requirements of subsection (i). (2) Each CAIR opt-in permit is deemed to incorporate automatically the definitions ofterrns under section 2of

ODIe: fvltly 29.2008 8:03:53AM Em DIN: 200e0528-IH-326080005PF<AIndiana Regisler
this rule and, upon recordation bythe U.S. EPA underthis section and sections 9 and 10 ofthis rule, every allocation, transfer, ordeduction ofCAIR NO ozone season allowances to orfrom the compliance account of the source that includes a CAIR NO ozone s'eason opt-in unit covered bythe CAIR opt-in permit. (3) The CAIR opt-in permit shall be (neluded, in a format prescribed bythe department, in the CAIR permit for the source where the CAIR NO ozone season opt-in unit is located and in a Part 70 operating permitor FESOP. '

(h) The following requirements must be satisfied in order to withdraw an opt-in unit from the CAIR NO, trading program: (1) Except as provided undersubdivision (8), a CAIR NO ozone season opt-in unit maywithdraw from the CAIR NO ozone season trading program, but only ifthe 3epartment issues a notification to the CAIR designate'd representative ofthe CAIR NO ozone season opt-in unit ofthe acceptance ofthe withdrawal of the CAIR NO ozone season opt-in unit in

### ~ccordance with subdivision (6). (2) In ordert<5withdraw a CAtR NO ozone season opt-in unitfrom the CAIR NO ozone season trading program, the CAIR designated

### repr~sentative ofthe CAIR NO ozone season opl-in unit shall submitto the department a request to withdraw effective as ofmidnight of

### S~ptember 30 ofa specified calendaryear, which date must be at least four (4) years after September30 ofthe yem of entry into the CAIR NO ozone season trading program under subsection (f)(9). The request must be submitted not laterthan ninety190) days before the requested effective date ofwithdrawal. (3) Before a CAIR NO ozone season opt-in unit covered by a request under subdivision (1) maywithdraw from the CAIR NO ozbne season trading program and the CAIR opt-in permit may be terminated under subdivision (7), th8'following conditions must be met.

(A) Forthe control period ending on the date on Wllich the withdrawal is to be effective, the source that includes the CAIR NO ozone season opt-in unit must meetthe requirement to hold CAIR NO ozone
season allowances 

### un8ersection 4(c) ofthis rule and cannot have any excess emissions. x (B) Afterthe requirement for withdrawal underclause (A) is met, the U.S. EPAwill deduct from the compliance account ofthe source that includes the CAIR NO ozone season opt-in unit CAIR NO ozone
season allowances equal in amountto and allocated forthe 

### sX ame ora priorcontrol period as an/'CAIR NO

ozone season allowances allocated to the CAIR NO ozone season opt-in unit undersection 120) ofthis ' rule for any control period forwhich the withdrawal ii to be effective. Ifthere are no remaining CAIR NO

ozone season units at the source, the U.S. EPAwill close the compliance account, and the owners andx operators ofthe CAIR NO ozone season opt-in unit may submit a CAIR NO ozone season allowance transferfor any remaining'CAIR NO ozone season allowances to anotherCAIR NO ozone season allowance tracking system in accorJance with section 10 ofthis rule. x (4) Afterthe requirements for withdrawal undersubdivisions (2) and (3) are met, including deduction ofthe full amount of CAIR NO ozone season allowances required, the department shall issue a notification to the CAIR designated represen'\ative ofthe CAIR NO ozone season opt-in unit ofthe acceptance ofthe withdrawal of the CAIR NO ozone season opt-in unit as'ofmidnighl on September 30 ofthe calendaryearforwhich the x

. withdrawal was requested. (5) Ifthe requirements for withdrawal under subdivisions (2) and (3) are not met, the department sllall issue a notification to the CAIR designated representative oftile CAIR NO ozone season opt-in unitthat the CAIR NO, ozone season opt-in unit's request to withdraw is demed. Such CAIR NO ozone season opt-in unit shall continue to be a CAIR NO ozone season opt-in unit. ' (6) Afterthe department is%ues a notification undersubdivision (4) Ihat the requirements for withdrawal have been met, the departmenl shall revise the CAIR permit covering the CAIR NO ozone season api-in unitto terminate the CAIR opt-in permitfor such unit as ofthe effective date specified undersubdivision (4). The unit shall continue to bo a CAIR NO ozone season opt-in unit until the effective dale of the termination and shall comply with all requirements

### un~er the CAIR NO ozone season trading program concerning any control periods for which the unit is a CAIR NO ozone 

### season opt-in unit, even 

### ifsuch requirements arise or must be complied with afterthe wilhdrawal lake';effect. ("1) 

### Ifthe department denies the CAIR NO ozone season opt-in unit's request to withdraw, the CAIR designated representative may submit an6ther request to withdraw In accordance with subdivisions (2) and (3). (8) Notwithstanding subdivisions (1) through 

### ('I), a**CAIF~** NO ozone season opt-in unit shall not be eligible to wiihdraw Iron] the C/\iR hlO. ozone season tradiliQ

### plOgral!1~r tile CAiR designated representative of the CAiR NO ozone season opt*in unlt requests, and the department issues a CAIR NO ozone season opt-in permit proQiding for, allocation to the CAIR NO ozone season opt-in unil of CAIR NO'ozone season allowances undel' subsection (j)(4).'

, (9) Once a CAIR NO ozone season opt-in unitwithdraws from the CAIR NO ozone season trading program and its CAIR opt-in

### p~rl11it is terminated under Ihis section, the CAIR designaled representative may not

Dale rvlay 29,2008 8:03S3AM Em DIN·**20080528"lr\·32GOBOOO~)PHA** Page 74Indiana Register
submit anotherapplication for a CAIR opt-in permit undersubsection (e) for such CAIR NO ozone season opt-in unit before the date that is four (4) years afterthe date on which the withdrawal becaPne effective. Such

new application for aCAIR opt-in permit shall be treated as an initial application for a CAIR opt-in permit under subsection (f).

(i) When a CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 1 of this rule, then the CAIRclesignaled representative shallnotily in,

### writing~the department and the U.S. EPA at SUCll change in the CAIR NO ozone season opt-in unit's regulatory status, within thirty (30) days of such change Ifthere is a change in the regulatory status, the department and the U.S. EPAwill take the following actions concerning the CAIR NO opt-in source: (1) When the CAIR Nb ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 1 of this rule, the

### departmel~t shall revise the CAIR NO ozone season opt-iA unit's CAIR opt-in permit to meet the requirements ofa CAIR permit undersection 7(d) §nd (7)(e) ofthis rule, and remove the CAIR opt-in permit provisions, as ofthe date on which the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone
season unit undersection 1 ofthis rule. x x (2) The U.S. EPAwill deductfrom the compliance account ofthe source that includes the CAIR NO ozone
season opt-in unitthat becomes a CAIR NO ozone season unit undersectionJofthis rule, CAIR

## No ozone
season allowances equal in amount to, and §lIocated fOf, the same orapriorcontrol period as follows:x

(A) Any CAIR NO ozone season allowances allocated to the CAIR NO ozone season opt-in unit under subsection m(4) fbr any control period afterthe date on which the CAII'fNO ozone season opt-in unit becomes aCAIR NO ozone season unit undersection 1 ofthis rule. ' (B) Ifthe date on whiEh the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 1 ofthis rule is not Seplember30, the CAIR NO ozone season

### allowa~ces allocated to the CAIR NO ozone season opt-in unit u'ndersection 12(j) ofthis'rule forthe control period that includes the date on wllich the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit under section 1 ofthis rule, multiplTed bythe ratio ofthe numberofdays, in the

### co~trol period, starting with the date on which the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit under section 1 ofthis rule divided'bythe total numberofdays in the control period'and rounded to the nearest whole allowance as appropriate. (3) The CAIR designated representative shall ensure that the compliance account ofthe source that includes the CAIR NO ozone season opt-in unitthat becomes aCAIR NO ozone season unit under section 1 ofthis rule containsIlle CAIR NO ozone season allowances necessarylorcompletion ofthe deduction under subdivision (2). ' (4) Forevery control period afterthe date on which the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 1 ofthis rule, tile CAIR No' ozone season opt-in unit shalt be allocated CArR NO ozone season allowances undersection 8(c) ofthis rufe. (5) Notwithstanding subdivision (4), ifthe date on which the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit under section 1 ofthis rule is notJanuary 1, September30, the following amount ofCAIR NO ozone season allowances shall be allocated to the CAIR NO ozone season opt-in unit,
x

. .. x.. as a CAIR NO ozone season unit, under section 8(c) ofthiS rule forthe control penod that Includes the date

on which tile CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 1 of this rule: x x (A) the amount ofCAIR NO ozone season allowances otherwise allocated to the CAIR NO ozone season opt-in unit, as a CAIR NO eTzone season unit, undersection 8(c) ofthis rule forthe control period; 

# , (B) multiplied by the ratio ofthe number of days, in the control period, starting with the date on which the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 1 ofthis rule, divided

# bythe total numbel" of days in the control period; End (C) rounded to the nearestwhole allowance, as appropriate.

(j) The department shall allocate CAIR NO allowances to CAIR NO opt-in sources as follows: (1) When the CAlF, api-In permit is issued Gnder subsection (f)(7),

### tI~e department shall allocate CAIR NO

ozone season allowances to the CAIR NO ozone season opt-in unit, and submit 10 the U.S. EPA the ' allocation forthe control period in which aCAIR NO ozone season opt-in unit enters the CAIR NO ozone
season trading program under subsection (0(9), in 

### iccordance with subdivision (3) or (4). x (2) By not lalerthan July 31 ofthe control period in which a CAIR opt-in unit enters the CAIR NO ozone
season trading program under subsection (f)(9) and July 31 ofeach yearthereafter, the

### departm~nl shall allocate CAIR NO ozone season allowances to Ihe CAIR NO ozone season opt-in unit, and submitto the U.S. EPAthe allocation forthe 

### control period that includes such submission deadline and in 

### which the unit is a CAIR NO ozone season opt-in unit, in accordance with subdivision (3) or (4). (3) Forea'ch control period lorwhich a CAIR NO ozone season opt-in unit is to be allocated CAIR NO ozone 

# , ,

Dato: MclY29,2001) 8:035JAM F.m DIN.**20080S28··lr-(·326(W0005PI~A**Indiana Register

season allowances, the department shall allocate in accordance with the following procedures:

(A) The heat input, in million British thermal units (MMBtu), used for calculating the CAIR NO ozone season allowance allocation sllall be the lesserofthe following: '

(i) The CAIR NO ozone season opt-in unit's baseline heat input determined undersubsection (1)(5). (ii) The CAIR Nd' ozone season opt-in unit's heat input, as determined in accordance with section 11 of this rule, for the iihmediately prior control period, except when the allocalion is being calculated for the control period in which the CAIR NOxozone season opt-in unit enters the CAIR NOx ozone season trad'lng program undersubsection (f)(9). (8) The NO emission rate, in million British thermal units (MMBtu), used for calculating CAIR NO ozone

season alioOvance allocations shall be the lesserofthe following: x

(I) The CAIR NO ozone season opt-in unit's baseline NO emissions rate, in pounds per million British thermal units (lbiMMBtu), determined undersubsection (f)(6) and multiplied by seventy percent (70%). (ii) The most stringent state orfederal NO 020ne season emissions limitation applicable to the CAIR NO

ozone season

### opt~in unit at anytime during the control period for which CAIR NO ozone season x allowances are to be allocated. x (C) The department sllall allocate CAIR NO ozone season allowances to the CAIR NO ozone season opt-in unit in an amount equaling the heat 

### inXput under clause (A), multiplied by the NO 

### ozone season x

..- emission rate underclause (B), divided bytwo thousand (2,000) pounds perton, and rounded to the nearest whole allowance as appropriate. (4) Notwililstanding subdivision (3) and ifthe CAIR designated representative requests, and the department issues a CAIR opt-in permit (based on a demonstration ofthe intentto repower stated undersubsection (e)(5)) providing for, allocation to a CAIR NO ozone season opt-in unit ofCAIR NO ozone season allowances underthis subdivision, subject to'\he conditions in 

### StiBsec-1ieA subsecti6ns (f)(10) and subsection (h), the department shall allocate to the CAIR NO ozone season opt-in unit as follows:

(A) Foreach control period in 2009 through 20f4 forwhich the CAIR NO ozone season opt-in unit is to be allocated CAIR NO ozone season allowances as follows: '

(I) The heat input,1n million British thermal units (MMBtu), used for calculating CAIR NO ozone season allowance allocations sllall be determined as described in subdivision (3)(A). x (ii) The NO emission rate, in pounds per million British thermal units (lb/MMBtu), used for calculating CAIR NO 

### ozone\eason allowance allocations shall be

### tile lesserof:

(A'A) tile CAIR NO ozone season opt-in unit's baseline NO emissions rate, in pounds per million British thermal units (lb/M'ivlBtu), determined undersubsection (f)(6); or (BB) the most stringent state orfederal NO emissions limitation applicable to the CAIR NO ozone
season opt-in unit at any time during the

### cO~ltrol period in which the CAIR NO ozone

### seaso~l opt-in unit enters the CAIR NO ozone season trading program undersubsection (1)(9). ' (iii) The department shall allocate CAIR NO ozone season allowances to the CAIR NO ozone season opt-in unit in an amount equaling the heat iri'put underclause (A)(i), multiplied by the NO, emission rate underclause (A)(ii), divided bytwo thousand (2,000) pounds perton, and rounded to the nearestwhole allowance as appropriate. (B) For each control period in 2015 and thereafterforwhich the CAIR NO ozone season opt-in unit is to be allocated CAIR NO ozone season allowances as follows: '

(i) Tile l1eat input,1n million British thermal units (MMBtu), used forcalculating the CAlF, NO ozone season allowance allocations shall be determined as described in subdivision (3)(A). ' (ii) The NO emission rate, in pounds per million British thermal units (lb/MMBtu), used for calculating the CAIR NO 5zone season allowance allocation shall be the lesserof:

(AA) fifle'en-hundredths (0.15) pounds permillion British thermal units (lb/MMBtu); (88) the CAIP. NO aLone season opt-in unit's baseline NO emissions rate, in pounds per million British thermal units (lb/M'ivlBtu), determined undersubsection (1)(6); or (CC) Ihe most stringent state orfederal NO emissions limitation applicable to the CAIR NO ozone
season opt-in unit at any time during the 

### co71trol period forwhich CAIR NO ozone season 

### allowances are 

# , to be allocated. (iii) The department sllall allocate CAIR NO ozone season allowances to the CAIR NO ozone season opt-in unit in an amount equaling the heat iri'put underclause (B)(i), Illultiplled bythe NO emission rate underclause (B)(ii), divided bytwo thousand (2,000) pounds per ton, and rounded to Ihe'nearest whole allowance as ;:Jppropriale. (5) The U.S. EPAwill record, in the compliance account of IIle source that includes IIle CAIR NO ozone
season opt-in unit, the CAIR NO ozone season allowances allocated by the department to the CAIR NO

ozone season opt-in unit undersXubdivision (1). x (6) By September 1 ofthe control period in which a CAlF, opt-in unit enters the CAlF, NO ozone season trading program undersubsection (f)(9) and September 1 ofeach year thereafter, tile U.S. EPAwill recore!, in tile compliance account ofthe source that includes the CAIR NO ozone season ozone season opt-in unit, the


# ,

Dale: M,,1y29,2008 S-OJ5JAM UTI [)IN:**20080528"IH·326080005pr~A** Pa9C 76

### Indiana Register
CAIR NO ozone season ozone season allowances allocated bythe department to the CAIR NO ozone

season o£one season opt-in unit under subdivision (2). x



### 'These documents are incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitol Street NW, Washington, D.C. 20401 orare available for review and copying atthe Indiana Department of Environmental Management, Office ofAirQuality, Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204. (AirPollution ConlrolBoard, 326 

### IA{;_£4-3-12; filedJan 26, 

### 2007, 10.25 8.m. 

### 200!Q2.21-IR-326050117FR.A; errata filedJan 29,2007,2:43p.m.: 20070221-IR-32605011!ACA!



### Notice of Public He.illlng

Posted: OS/28/2008byLegislative ServicesAgency An htnl1 version ofthis document.

Dale May 29,2008 8035JAM E!Jl DIN: 20080528·IH·J2GOH0005PHi-\