### Mr. Mark Hague Page Two

electronically in the format specified by the Administrator. 5. In accordance with 40 CFR 52.38(a)(3)(iv), the list submitted on March 27 th 

### is a permanent allocation for the units on the list for 2016 and the SIP revision does not provide for any changes to the listed units or allocations after approval by the Administrator under subpart AAAAA of 40 CFR Part 97.

The Missouri Air Conservation Commission adopted the SIP revision submitted on March 27 th 

### at the March 26, 2015 commission meeting. A public hearing for the proposed plan was held on January 29, 2015. A 30-day public comment period opened by December 29, 2015 and closed on February 5, 2015

. During the public comment period for the proposed SIP revision, the Air Program did not receive any comments. A summary explaining that no comments were received is attached.

In order to comply with Attachment A of the "Regional Consistency for the Administrative Requirements of State Implementation Plan Submittals and the Use of 'Letter Notices'" memo dated April 6, 2011, a searchable pdf version of the complete submittal package will be emailed to the EPA Regional Office. Within three business days, this complete package will be posted on our website at http://dnr.mo.gov/env/apcp/stateplans.htm

.

Thank you for your attention to this matter. If you have any questions regarding the March 27 th 

### submission, please contact Ms. Wendy Vit with the Missouri Department of Natural Resources' Air Pollution Control Program at P.O. Box 176, Jefferson City, MO 65102 or by telephone at (573) 751­ 4817.

Sincerely,

# Am~:ON~T**~:;**

# K:~re Director

KLM:mlc

Enclosures:

Copy of the email text for the March 27 th 

### submission Copy of supplemental document and appendix to the SIP revision Copy of commission signature page certifying Missouri Air Conservation Commission adoption Copy of public hearing notices Copy of public hearing transcript introductory statement Copy of recommendation for adoption Copy of the summary of comments and responses CD with electronic copy of the entire submittal package

c: Missouri Air Conservation Commission File# 2014- Transport Rule-NO x 

### Annual1 

### Bechtel, Cheri

From: Leath, Mark Sent: Friday, March 27, 2015 8:36 AM To: 'transport-rule@epa.gov' Cc: 'branch.paula@epa.gov'; 'bhesania.am y@epa.gov'; 'jay.michael@epa.gov'; 'kemp.lachala@epa.gov'; Moore, Kyra; Vit, Wendy; Wilbur, Emily; Graf, Wayne; Basham, Aaron; Leath, Mark; Bechtel, Cheri Subject: Missouri TR NOx Annual Allocations for Existing Units for Vintage Year 2016 Attachments: Submittal Missouri 2016 TR NOx Annual Allocations.xls

Clean Air Market Division,

The attached Microsoft Excel document contains Missouri’s Transport Rule (TR) NO x Annual Allocations for Existing Units for Vintage Year 2016. The Missouri Department of Natural Resources’ Air Pollution Control Program is submitting this list to reallocate allowances to existing units under the federal Cross

‐ State Air Pollution Rule’s (CSAPR) TR NO x Annual Trading Program for the 2016 control period in accordance with 40 CFR 52.38(a)(3).

The Missouri Department of Natural Resources’ Air Pollution Control Program is also submitting a letter to EPA Region VII to request approval of the complete SIP revision to allow for the reallocation of allowances for the 2016 control period. If EPA approves the SIP revision, the attached list of unit level TR NO x Annual allocations will replace the provisions of 40 CFR 97.411(a) for the 2016 control period under the CSAPR.

If you have any questions regarding the submission of the attached list of Missouri’s unit level TR NO x Annual Allocations for existing units for vintage year 2016, please contact me via phone or email.

Thank you,

Mark Leath, P.E. Environmental Engineer Air Pollution Control Program Department of Natural Resources Phone: (573) 526

‐ 5503 Email: mark.leath@dnr.mo.gov

Promoting, Protecting and Enjoying our Natural Resources. Learn more at dnr.mo.gov

.

### 2014-Transport Rule-NO x 

### Annual 

# Supplemental Document for Missouri State Implementation Plan Revision



# ________________ Cross-State Air Pollution Rule (CSAPR) NO x 

# Annual Trading Program



# ________________
Prepared for the Missouri Air Conservation Commission



# Adoption March 26 th 

# , 2015
Missouri Department of Natural Resources Division of Environmental Quality Air Pollution Control Program Jefferson City, Missouri

### 2014-Transport Rule-NO x 

### Annual

### i TABLE OF CONTENTS
PURPOSE

............................................................................................................................... ................................... 1
1. BACKGROUND

............................................................................................................................... ......... 2
2. MISSOURI TR NO X ANNUAL TRADING PROGRAM SIP REVISION FOR 2016

............. 4

2.1 Summary of Federal Allocation Method to Existing Units Under CSAPR ..................................................... 4 2.2 Missouri TR NO x Annual Trading Program Allocation Me thod for 2016 Under the SIP .............................. 4 2.3 Authority to Implement this SIP ............................................................................................... ...................... 5 2.4 Public Participa tion and Ou treach ............................................................................................. ...................... 5 2.5 Missouri TR NO x Annual Trading Program Allocations for 2016 .................................................................. 6 Table 1. Missouri TR NO x Annual Allocations for the 2016 Control Period

.................................................. 7

### 1 

# Purpose

The purpose of the State Implementation Plan (SIP ) revision described in this document is for the Missouri Department of Natu ral Resources’ Air Pollution Cont rol Program (Air Program) to assume allocation authority for the Missouri exis ting unit budget in the Transport Rule (TR) NO x 

### Annual Trading Program for the 2016 control pe riod under the U.S. Environmental Protection Agency’s (EPA) Cross-State Air Pollution Rule (CSAPR). The Air Program is submitting a SIP revision with adjusted individual unit level allocations that will replace the allocations from the existing unit budget established by the CSAPR Fe deral Implementation Plan (FIP) for the 2016 control period.
This supplemental document outlines the purpose, background, and authority to submit as a SIP revision the unit level allowance allocations for existing TR NO x 

### Annual units in Missouri for the 2016 control period. This supplemental document will be submitted to EPA, but the Air Program is only requesting SIP approval of the allowance allocations being submitted.

When the federal allowance allo cation method is applied to Mi ssouri’s existing unit budget for the TR NO x 

### Annual Trading Program for the 2016 control period, there are nine (9) excess allowances in the existing unit budget due to r ounding. The SIP revisi on described in this document will reallocate four (4) of these ni ne (9) excess allowances as follows: two (2) allowances to the facility owned by the City of Ch illicothe and two (2) allowances to the facility owned by the City of Higginsville. These two f acilities were not allocated any allowances under the federal allocation method. All other existing unit budget allo wances will be distributed identically to the federal allocation method.

The SIP revision described in this document redistributes emission allowances for the 2016 control period only. The Air Program is pursuin g a separate rulemaking and SIP revision to reallocate allowances for the control periods in 2017 and beyond.

### 2 

## 1. Background

In 2005, the EPA finalized a federal emission trading program for the eastern half of the country. This trading program was known as the Clean Air Interstate Rule (CAIR). CAIR established three different federal emission tr ading programs that were designed to limit interstate transport of emissions that significantly contribute to nonattainment or interfer e with maintenance in downwind states. States are required to address these emissions in accordance with Clean Air Act (CAA) Section 110(a)(2)(D)(i) (I). CAIR addressed these requi rements for states that were included in the rule for two different NAAQS , the 1997 8-hour ozone NAAQS, and the 1997 fine particulate matter (PM 2.5 

### ) NAAQS. However, in 2008, the District of Columbia Circuit Court of Appeals (D.C. Circuit Court) remanded CAIR to EP A due to deficiencies found in the rule. EPA was directed by the courts to write a rule to re place CAIR and address th ese deficiencies. The EPA finalized the CSAPR on August 8, 2011 (76 FR 48208) in response to this court decision and was intended to replace CAIR beginning January 1, 2012.
However, in December 2011, prior to the implem entation of CSAPR, the D.C. Circuit Court stayed the implementation of CSAPR pending the outcome of litigation that had been filed against the CSAPR. Then in August 2012, the D. C. Circuit Court issued a decision vacating CSAPR and directed EPA to continue to impl ement CAIR until they could implement a new replacement rule that addresses the Court’s concerns. However, EPA appealed the D.C. Circuit Court’s decision to the U.S. S upreme Court and in April 2014, th e U.S. Supreme Court reversed the D.C. Circuit Court’s decision that vacated the CSAPR. Then in June 2014, EPA filed a motion to the D.C. Circuit Court to lift the stay of the CSAPR and delay all compliance dates in the rule by three (3) years, whic h would require that phase I of CSAPR would begin in January 2015. In October 2014, the D.C. Circuit court gran ted EPA’s motion to lift the stay of the CSAPR, and on December 3, 2014 the EPA promulgate d an interim final ru le (79 FR 71663) that extends the compliance dates of the CSAPR by three (3) years and clarifies that the rule will go into effect in 2015.
The CSAPR establishes four (4) se parate federal emission trading programs for states located in the eastern half of the country. These four trading program s include the TR SO 2 

### Group 1 Trading Program, the TR SO 2 

### Group 2 Trading Program, the TR NO x 

### Annual Trading Program, and TR NO x 

### Ozone Season Trading Program. States that were found to be significantly contributing to a 1997 and/or 2006 PM 2.5 

### NAAQS nonattainment ar ea or interfere with maintenance of these PM 2.5 

### NAAQS in a downwind state are included in one of the TR SO 2 

### Trading Programs, along with the TR Annual NO x 

### Trading Program. Stat es that were found to be significantly contributing to 1997 Ozone NA AQS nonattainment areas or interfere with maintenance of this ozone NAAQS in a dow nwind state are included in the TR NO x 

### Ozone Season Trading Program.
The final CSAPR, which was published in th e federal register on August 8, 2011, includes Missouri in the TR SO 2 

### Group 1 Trading Program and the TR NO x 

### Annual Trading Program. Missouri was not included in the TR NO x 

### Ozone Season trading program under the final rule. However, on December 27, 2011, EPA finalized a supplement to the final CSAPR (76 FR 80760), which added Missouri and five (5) other states to the TR NO x 

### Ozone Season Trading Program. Therefore, Missour i is included in the TR NO x 

### Ozone Season Trading Program beginning in 2015.

### 3 EPA is implementing CSAPR through a FIP begi nning January 1, 2015 (79 FR 71663). Through the CSAPR, every state included in the rule has a statewide emission budget for each trading program in which it is included. These stat ewide budgets consist of a certain amount of allowances that are distributed to the CSAPR-affected units in that state. Applicability under the TR NO x 

### Ozone Season Trading Program is defined in 40 CFR 97.504. Each allowance permits a unit to emit one ton of the respective air pollu tant for which the allowance is granted. Allowances may be used to cove r emissions from a particular un it, they may be banked to be used in a future year, or they can be traded or sold to other affect ed units included in the respective trading program. Ther e are several different compliance options for units subject to CSAPR. Some examples of compliance options in clude, but are not limited to, the installation of controls to lower emissions, purchasing allowan ces from units with excess allowances due to over-controlling emissions, transf er allowances from one unit to another, fuel-switching, improved unit operating procedures, unit efficien cy improvements, and modifications to unit dispatch order.
The following two paragraphs are intended to summarize the method used by EPA in setting statewide and unit level allowan ce budgets under the CSAPR. Comp lete details regarding these methods can be found in the preamble to the CSAPR (76 FR 48208 – 48352).
EPA’s method of setting statewide emission budgets through the CSAPR included the use of the future year modeling. EPA took into account al l known or planned controls that would be operational on all affected units included in th e CSAPR by January 1, 2012. EPA also took into account all cost effective controls that could be installed to control emi ssions at CSAPR-affected units. The modeling was performed using thes e inputs, and the emissions computed by the model at each unit were summed fo r each state included in the ru le to develop the statewide emission budget. These statewide budgets ca nnot be increased by states through a SIP.
After calculating the statewide budge ts, EPA allocated the allowances to individual units in each state. Under the FIP, the statewide budgets for each trading program are divided into two different budget pools, the existing unit budget a nd the new unit set-aside (NUSA). Existing units are defined as those in operation on or be fore January 1, 2010. The NUSA was established as a percent of the statewide budget, to cover emissions from units that commenced commercial operation after January 1, 2010. The allowances that remain in the statewide budget after the NUSA is subtracted make up the existing un it budget. Once thes e two budget pools were established, EPA allocated allowances to individu al existing CSAPR-affect ed units (units that commenced operation prior to January 1, 2010) using a method that took into account both historical heat input and histor ical emissions at each unit.
These individual existing unit level allocations established through the FIP cannot be changed by states through a SIP for the 2015 control periods. However, for the 2016 control period, states can submit SIPs to alter the individual unit leve l allocations under the FIP from the existing unit budget. The unit level allocations in the NUSA cannot be changed by states through a SIP for the 2016 control periods. For the 2017 and beyond control periods, states can submit SIPs to alter the individual unit level a llocations under the FIP from both the existing unit budget and the NUSA.

### 4 

## 2. Missouri TR NO x 

## Annual Trading Program SIP Revision for 2016

2.1 Summary of Federal Allocation Meth od to Existing Units Under CSAPR The following two paragraphs are intended to summarize the method used by EPA to set unit level allowance budgets for existing units under th e CSAPR. Complete details regarding the federal allocation method can be found in the preamble to the CSAPR (76 FR 48208 – 48352).

Under the federal allocat ion method of the CSAPR, existing units are distributed allowances from the statewide existing unit budget based on their historical heat input and capped at their historical maximum emissions. Specifically, the highest (nonzero) three y ears of each unit’s heat input from the control periods in 2006 – 2010 are av eraged together. This value is then summed with every other unit in the state in order to dete rmine a percentage of historical statewide heat input for each unit. This percentage is then multiplied by the statewid e existing unit budget to calculate the initial allocation for each unit. This value is compar ed to historical high emissions value at that unit from the control periods in 2003 – 2010. If the initial a llocation for the unit is lower than the historical high emissions value, th e unit receives th e initial allocation amount. If the initial allocation for the unit is higher than the historical high em issions value, the unit receives their historical high emissions value as their allocation and the remaining allowances are rolled back to the statewide existing unit budget. This process is repeat ed until the number of allowances allocated to existing units equals the amount of allowa nces in the st atewide existing unit budget.

Once the number of allowances allocated to existi ng units equals the amount of allowances in the statewide existing unit b udget, all allowances that have b een allocated to existing units are rounded to the nearest whole number using conve ntional rounding. If more allowances are rounded down than rounded up, there will be exce ss allowances in the ex isting unit budget. If more allowances are rounded up than rounded do wn, there will not be e nough allowances in the existing unit budget to cover the allowances that were allocated. In both cases, under the FIP, the difference would be made with the NUSA. In other words, under the FIP, any extra allowances in the existing unit budget due to r ounding would be transferred to the NUSA, and allowances would be taken from the NUSA if need ed to cover the existing unit budget as a result of rounding.



## 2.2 Missouri TR NO x 

## Annual Trading Program Allocation Method for 2016 Under the SIP When the federal allocation method is applied to Missouri’s existing unit budget for the TR NO x 

### Annual Trading Program for the 2016 control period, there are nine (9) exce ss allowances due to rounding. The SIP revision described in this docume nt will reallocate four (4) of these nine (9) excess allowances as follows: two (2) allowances to the facility owned by the City of Chillicothe and two (2) allowances to the f acility owned by the City of Higgi nsville. No other changes to the existing unit allowance al locations are being made.

Missouri’s codified TR NO x 

### Annual Trading Program NUSA for the 2016 control period is six percent (6%) of the statewide budget, or 3,144 allo wances. Missouri’s SIP, as outlined in this document, is reallocating four (4 ) of the nine (9) excess TR NO x 

### Annual allowances to existing

### 5 units. Therefore, if Missouri’s 2016 TR NO x 

### Annual SIP is approved by EPA, five (5) excess allowances from the existing unit budget will be placed in the NUSA for the 2016 control period, in which case Missouri’s NUSA for the TR NO x 

### Annual Trading Program will contain 3,149 allowances for the 2016 control period.



## 2.3 Authority to Implement this SIP Section 110(a)(2)(D)(i)(I) of the CAA requires Stat es to develop SIPs to address their significant impact on downwind states’ nonattainment and main tenance areas. If a state fails to address their significant impact on downw ind states, then EPA can implement a FIP. States have the authority to revise their SIP in order to replace all or portions of a FIP if the requirements of the CAA are met.
Due to the timing of the requirements under the CSAPR FIP and the corresponding federal trading programs established under CSAPR, the EP A has issued regulations defining the states’ authority to revise their SIP to replace the individual alloca tion method portions of the CSAPR FIP. 40 CFR 52.38 (a)(3) grants states the righ t to adopt and submit a SIP revision that would replace the TR NO x 

### Annual allowance allo cation provisions in 40 CFR 97.411(a) for the 2016 control period provided that certai n requirements are met. These requirements include that the State must provide a list of TR NO x 

### Annual Units and the allowances allocated to each of these units. All of the units on the list must be located in the state and must have commenced commercial operation before January 1, 2010. The to tal number of allowances must not exceed the total statewide budge t listed in 40 CFR 97.410(a) for the 2016 control period minus the NUSA. The list must be submitted electronically in a format prescribed by EPA, and the SIP revisions must not provide for any change in the allocations on the list after approval of the SIP by EPA. The State must also have notified EPA of its intent to assume allocation authority for 2016 electronically in a format prescribed by EPA and the SIP revision must be submitted by April 1, 2015 (76 FR 48354).
As required by CSAPR, on October 17 th 

### , 2011, the Air Program notified EPA of its intent to assume the allocation author ity for 2013 for the TR NO x 

### Annual Trading Program. As clarified in EPA’s CSAPR Interim Final rule that wa s promulgated on December 3, 2014 (79 FR 71663), because implementation of the CSAPR was delaye d through litigation for three (3) years, the letter of intent submitted back in 2011, still satis fies the requirement to submit such a letter in order for the state to assume a llocation authority for existing un its for the 2016 control period.

The Missouri Air Conservation Commission has the legal authority to develop, implement, and enforce regulations regarding air pollution, incl uding the requirements of the SIP submittal described in this document, under section 643.050 of the Revised Statues of Missouri, also known as the Missouri Air Conservation Law.



## 2.4 Public Participation and Outreach In accordance with Section 110(a)(2) of the CAA, Missouri is required to hold a public hearing prior to adoption of a SIP revision and the subsequent submittal to the EPA. The Department notified the public and other inte rested parties of the public h earing and comment period thirty (30) days prior to holding such hearing for the SIP revision described in this document as follows:

### 6  Notice of availability of the SIP revision de scribed in this document was posted on the Department of Natural Resources’ Air Po llution Control Program website by December 29, 2014: http://www.dnr.mo.gov/env/ap cp/stateplanrevisions.htm

 

### The public hearing on the SIP revision descri bed in this document was held on January 29, 2015, at 9:00 a.m. CST at the Bennett Spri ngs Conference Room, 1730 E. Elm Street, Jefferson City, MO 65101.

 

### The comment period for the SIP revision described in this document opened on December 29, 2014 and closed on February 5, 2015, at 5:00 p.m. CST, which was seven (7) days after th e public hearing.
The Air Program also held several stakeholde r meetings and conference calls with CSAPRaffected facilities since the final CSAPR was promulgated on August 8, 2011. The goal of these meetings was to discuss the SIP revisions to assume allowance allocat ion authority under the CSAPR.



## 2.5 Missouri TR NO x 

## Annual Trading Program Allocations for 2016 Table 1, below, summarizes Missouri’s TR NO x 

### Annual Trading Program Allocations for the 2016 control period. Appendix A incl udes the same allocations as Table 1, but is presented in EPA’s prescribed format for submitti ng state allocations under the CSAPR.
For clarity, the following list notes the di fferences between Table 1 and Appendix A:

 Table 1 includes the facility plant names a nd ORIS codes for each facility; Appendix A includes the facility complia nce account numbers that correspond to each plant as opposed to their names and

 Table 1 includes the state name in each ro w; Appendix A includes the state’s primary reserve account number from which the allocatio ns will be transferre d to each facility.

 Table 1 does not have a specific column to indi cate the vintage year of the allocations. Appendix A has a column to specify that the vintage year of the all the allocations is 2016.

 When Appendix A is submitted to EPA, it will be submitted electronically as a Microsoft Excel document and will be titled Missouri 2016 Existing Unit Allocations – TR NOx Annual Trading Program

. By April 1, 2015, the Air Program will submit a SIP revision to EPA with Missouri’s TR NO x 

### Annual Trading Program Allocations for the 2016 c ontrol period. The SIP revision will contain the table in Appendix A, and will be submitted el ectronically in the format prescribed by EPA.

### 7 

### Table 1. Missouri TR NO x 

### Annual Allocations for the 2016 Control Period

Plant Name State ORIS ID Boiler ID 2016 TR NO x Annual Allocation Asbury Missouri 2076 1 989 Audrain Power Plant Missouri 55234 CT1 2 Audrain Power Plant Missouri 55234 CT2 2 Audrain Power Plant Missouri 55234 CT3 2 Audrain Power Plant Missouri 55234 CT4 2 Audrain Power Plant Missouri 55234 CT5 1 Audrain Power Plant Missouri 55234 CT6 1 Audrain Power Plant Missouri 55234 CT7 1 Audrain Power Plant Missouri 55234 CT8 1 Blue Valley Missouri 2132 3 141 Chamois Power Plant Missouri 2169 2 278 Chillicothe Missouri 2122 GT1A 2 Chillicothe Missouri 2122 GT1B 0 Chillicothe Missouri 2122 GT2A 0 Chillicothe Missouri 2122 GT2B 0 Columbia Missouri 2123 6 24 Columbia Missouri 2123 7 67 Columbia Missouri 2123 8 0 Columbia Energy Center (MO) Missouri 55447 CT01 1 Columbia Energy Center (MO) Missouri 55447 CT02 2 Columbia Energy Center (MO) Missouri 55447 CT03 1 Columbia Energy Center (MO) Missouri 55447 CT04 1 Dogwood Energy Facility Missouri 55178 CT-1 33 Dogwood Energy Facility Missouri 55178 CT-2 30 Empire District Elec Co Energy Ctr Missouri 6223 1 1 Empire District Elec Co Energy Ctr Missouri 6223 2 2 Empire District Elec Co Energy Ctr Missouri 6223 3A 11 Empire District Elec Co Energy Ctr Missouri 6223 3B 11 Empire District Elec Co Energy Ctr Missouri 6223 4A 12 Empire District Elec Co Energy Ctr Missouri 6223 4B 12 Essex Power Plant Missouri 7749 1 9 Fairgrounds Missouri 2082 CT01 0 Greenwood Energy Center Missouri 6074 1 6 Greenwood Energy Center Missouri 6074 2 5 Greenwood Energy Center Missouri 6074 3 7 Greenwood Energy Center Missouri 6074 4 8 Hawthorn Missouri 2079 5A 2,445 Hawthorn Missouri 2079 6 1 Hawthorn Missouri 2079 7 7 Hawthorn Missouri 2079 8 8 Hawthorn Missouri 2079 9 21 Higginsville Municipal Power Plant Missouri 2131 4A 2 Higginsville Municipal Power Plant Missouri 2131 4B 0 Holden Power Plant Missouri 7848 1 5 Holden Power Plant Missouri 7848 2 6

### 8 Plant Name State ORIS ID Boiler ID 2016 TR NO x Annual Allocation Holden Power Plant Missouri 7848 3 5 Howard Bend Missouri 2102 CT1A 0 Howard Bend Missouri 2102 CT1B 0 Iatan Missouri 6065 1 3,464 James River Missouri 2161 **GT1 7 James River Missouri 2161 **GT2 15 James River Missouri 2161 3 232 James River Missouri 2161 4 264 James River Missouri 2161 5 487 John Twitty Energy Center Missouri 6195 1 897 John Twitty Energy Center Missouri 6195 CT1A 1 John Twitty Energy Center Missouri 6195 CT1B 1 John Twitty Energy Center Missouri 6195 CT2A 1 John Twitty Energy Center Missouri 6195 CT2B 1 Labadie Missouri 2103 1 2,321 Labadie Missouri 2103 2 2,495 Labadie Missouri 2103 3 2,695 Labadie Missouri 2103 4 2,613 Lake Road Missouri 2098 6 463 Lake Road Missouri 2098 GT5 2 McCartney Generating Station Missouri 7903 MGS1A 11 McCartney Generating Station Missouri 7903 MGS1B 11 McCartney Generating Station Missouri 7903 MGS2A 11 McCartney Generating Station Missouri 7903 MGS2B 11 Meramec Missouri 2104 1 724 Meramec Missouri 2104 2 682 Meramec Missouri 2104 3 1,204 Meramec Missouri 2104 4 1,678 Meramec Missouri 2104 CT01 0 Meramec Missouri 2104 CT2A 0 Meramec Missouri 2104 CT2B 0 Mexico Missouri 6650 CT01 0 Moberly Missouri 6651 CT01 0 Montrose Missouri 2080 1 811 Montrose Missouri 2080 2 795 Montrose Missouri 2080 3 835 Moreau Missouri 6652 CT01 0 New Madrid Power Plant Missouri 2167 1 2,548 New Madrid Power Plant Missouri 2167 2 2,432 Nodaway Power Plant Missouri 7754 1 5 Nodaway Power Plant Missouri 7754 2 5 Northeast Generating Station Missouri 2081 11 0 Northeast Generating Station Missouri 2081 12 0 Northeast Generating Station Missouri 2081 13 0 Northeast Generating Station Missouri 2081 14 0 Northeast Generating Station Missouri 2081 15 0

### 9 Plant Name State ORIS ID Boiler ID 2016 TR NO x Annual Allocation Northeast Generating Station Missouri 2081 16 0 Northeast Generating Station Missouri 2081 17 1 Northeast Generating Station Missouri 2081 18 1 Peno Creek Energy Center Missouri 7964 CT1A 11 Peno Creek Energy Center Missouri 7964 CT1B 10 Peno Creek Energy Center Missouri 7964 CT2A 10 Peno Creek Energy Center Missouri 7964 CT2B 10 Peno Creek Energy Center Missouri 7964 CT3A 11 Peno Creek Energy Center Missouri 7964 CT3B 11 Peno Creek Energy Center Missouri 7964 CT4A 10 Peno Creek Energy Center Missouri 7964 CT4B 10 Ralph Green Station Missouri 2092 3 1 Rush Island Missouri 6155 1 2,086 Rush Island Missouri 6155 2 2,106 Sibley Missouri 2094 1 249 Sibley Missouri 2094 2 245 Sibley Missouri 2094 3 1,567 Sikeston Missouri 6768 1 1,420 Sioux Missouri 2107 1 2,098 Sioux Missouri 2107 2 1,893 South Harper Peaking Facility Missouri 56151 1 15 South Harper Peaking Facility Missouri 56151 2 19 South Harper Peaking Facility Missouri 56151 3 23 St. Francis Power Plant Missouri 7604 1 31 St. Francis Power Plant Missouri 7604 2 29 State Line (MO) Missouri 7296 1 9 State Line (MO) Missouri 7296 2-1 57 State Line (MO) Missouri 7296 2-2 59 Thomas Hill Energy Center Missouri 2168 MB1 928 Thomas Hill Energy Center Missouri 2168 MB2 1,451 Thomas Hill Energy Center Missouri 2168 MB3 2,993 Viaduct Missouri 2096 CT01 0

## Appendix A Missouri 2016 NO x 

## Annual Allocations

The table on the following pages includes the 2016 NO x 

### Annual Allocations under the CrossState Air Pollution Rule that the Missouri Depa rtment of Natural Resources’ Air Pollution Control Program intends to submit to EPA by April 1 st 

### , 2015. The table is in the format prescribed by EPA; however, when the tabl e is submitted to EPA, it will be submitted electronically as a Microsoft Excel Document and this cover page will not be included.STReserveAcct ReceiveAcct UnitId VintageYear Amount MO0000000100 002076FACLTY 1 2016 989 MO0000000100 055234FACLTY CT1 2016 2 MO0000000100 055234FACLTY CT2 2016 2 MO0000000100 055234FACLTY CT3 2016 2 MO0000000100 055234FACLTY CT4 2016 2 MO0000000100 055234FACLTY CT5 2016 1 MO0000000100 055234FACLTY CT6 2016 1 MO0000000100 055234FACLTY CT7 2016 1 MO0000000100 055234FACLTY CT8 2016 1 MO0000000100 002132FACLTY 3 2016 141 MO0000000100 002169FACLTY 2 2016 278 MO0000000100 002122FACLTY GT1A 2016 2 MO0000000100 002122FACLTY GT1B 2016 0 MO0000000100 002122FACLTY GT2A 2016 0 MO0000000100 002122FACLTY GT2B 2016 0 MO0000000100 002123FACLTY 6 2016 24 MO0000000100 002123FACLTY 7 2016 67 MO0000000100 002123FACLTY 8 2016 0 MO0000000100 055447FACLTY CT01 2016 1 MO0000000100 055447FACLTY CT02 2016 2 MO0000000100 055447FACLTY CT03 2016 1 MO0000000100 055447FACLTY CT04 2016 1 MO0000000100 055178FACLTY CT

‐ 1 2016 33 MO0000000100 055178FACLTY CT

‐ 2 2016 30 MO0000000100 006223FACLTY 1 2016 1 MO0000000100 006223FACLTY 2 2016 2 MO0000000100 006223FACLTY 3A 2016 11 MO0000000100 006223FACLTY 3B 2016 11 MO0000000100 006223FACLTY 4A 2016 12 MO0000000100 006223FACLTY 4B 2016 12 MO0000000100 007749FACLTY 1 2016 9 MO0000000100 002082FACLTY CT01 2016 0 MO0000000100 006074FACLTY 1 2016 6 MO0000000100 006074FACLTY 2 2016 5 MO0000000100 006074FACLTY 3 2016 7 MO0000000100 006074FACLTY 4 2016 8 MO0000000100 002079FACLTY 5A 2016 2,445 MO0000000100 002079FACLTY 6 2016 1 MO0000000100 002079FACLTY 7 2016 7 MO0000000100 002079FACLTY 8 2016 8 MO0000000100 002079FACLTY 9 2016 21 MO0000000100 002131FACLTY 4A 2016 2MO0000000100 002131FACLTY 4B 2016 0 MO0000000100 007848FACLTY 1 2016 5 MO0000000100 007848FACLTY 2 2016 6 MO0000000100 007848FACLTY 3 2016 5 MO0000000100 002102FACLTY CT1A 2016 0 MO0000000100 002102FACLTY CT1B 2016 0 MO0000000100 006065FACLTY 1 2016 3,464 MO0000000100 002161FACLTY **GT1 2016 7 MO0000000100 002161FACLTY **GT2 2016 15 MO0000000100 002161FACLTY 3 2016 232 MO0000000100 002161FACLTY 4 2016 264 MO0000000100 002161FACLTY 5 2016 487 MO0000000100 006195FACLTY 1 2016 897 MO0000000100 006195FACLTY CT1A 2016 1 MO0000000100 006195FACLTY CT1B 2016 1 MO0000000100 006195FACLTY CT2A 2016 1 MO0000000100 006195FACLTY CT2B 2016 1 MO0000000100 002103FACLTY 1 2016 2,321 MO0000000100 002103FACLTY 2 2016 2,495 MO0000000100 002103FACLTY 3 2016 2,695 MO0000000100 002103FACLTY 4 2016 2,613 MO0000000100 002098FACLTY 6 2016 463 MO0000000100 002098FACLTY GT5 2016 2 MO0000000100 007903FACLTY MGS1A 2016 11 MO0000000100 007903FACLTY MGS1B 2016 11 MO0000000100 007903FACLTY MGS2A 2016 11 MO0000000100 007903FACLTY MGS2B 2016 11 MO0000000100 002104FACLTY 1 2016 724 MO0000000100 002104FACLTY 2 2016 682 MO0000000100 002104FACLTY 3 2016 1,204 MO0000000100 002104FACLTY 4 2016 1,678 MO0000000100 002104FACLTY CT01 2016 0 MO0000000100 002104FACLTY CT2A 2016 0 MO0000000100 002104FACLTY CT2B 2016 0 MO0000000100 006650FACLTY CT01 2016 0 MO0000000100 006651FACLTY CT01 2016 0 MO0000000100 002080FACLTY 1 2016 811 MO0000000100 002080FACLTY 2 2016 795 MO0000000100 002080FACLTY 3 2016 835 MO0000000100 006652FACLTY CT01 2016 0 MO0000000100 002167FACLTY 1 2016 2,548 MO0000000100 002167FACLTY 2 2016 2,432 MO0000000100 007754FACLTY 1 2016 5MO0000000100 007754FACLTY 2 2016 5 MO0000000100 002081FACLTY 11 2016 0 MO0000000100 002081FACLTY 12 2016 0 MO0000000100 002081FACLTY 13 2016 0 MO0000000100 002081FACLTY 14 2016 0 MO0000000100 002081FACLTY 15 2016 0 MO0000000100 002081FACLTY 16 2016 0 MO0000000100 002081FACLTY 17 2016 1 MO0000000100 002081FACLTY 18 2016 1 MO0000000100 007964FACLTY CT1A 2016 11 MO0000000100 007964FACLTY CT1B 2016 10 MO0000000100 007964FACLTY CT2A 2016 10 MO0000000100 007964FACLTY CT2B 2016 10 MO0000000100 007964FACLTY CT3A 2016 11 MO0000000100 007964FACLTY CT3B 2016 11 MO0000000100 007964FACLTY CT4A 2016 10 MO0000000100 007964FACLTY CT4B 2016 10 MO0000000100 002092FACLTY 3 2016 1 MO0000000100 006155FACLTY 1 2016 2,086 MO0000000100 006155FACLTY 2 2016 2,106 MO0000000100 002094FACLTY 1 2016 249 MO0000000100 002094FACLTY 2 2016 245 MO0000000100 002094FACLTY 3 2016 1,567 MO0000000100 006768FACLTY 1 2016 1,420 MO0000000100 002107FACLTY 1 2016 2,098 MO0000000100 002107FACLTY 2 2016 1,893 MO0000000100 056151FACLTY 1 2016 15 MO0000000100 056151FACLTY 2 2016 19 MO0000000100 056151FACLTY 3 2016 23 MO0000000100 007604FACLTY 1 2016 31 MO0000000100 007604FACLTY 2 2016 29 MO0000000100 007296FACLTY 1 2016 9 MO0000000100 007296FACLTY 2

‐ 1 2016 57 MO0000000100 007296FACLTY 2

‐ 2 2016 59 MO0000000100 002168FACLTY MB1 2016 928 MO0000000100 002168FACLTY MB2 2016 1,451 MO0000000100 002168FACLTY MB3 2016 2,993 MO0000000100 002096FACLTY CT01 2016 0

### ---------- -- ---------------------- 

### The Missouri Air Conservation Commission 

### ADOPTS the following action

on this 26th day of March, 2015:

Missouri State Implementation Plan Revision

- Cross-State Air Pollution Rule NO x 

### Annual Trading Program

, Chairman

# ~1~~~~**C-. --** **========= =-----**  ___ " Vice Chairman

# ,**~--i**

, Member

__________________________________ ,Member

__________________________________ ,Member

___________________________________ ,Member1 

### Vit, Wendy

From: **Missouri DNR <MODNR@public.govdelivery.com>** Sent: **Monday, December 29, 2014 8:57 AM** To: **Bungart, Renee; Archer, Larry; Lovejoy, Victoria; M oore, Kyra; Vit, Wendy; Bechtel, Cheri;**  **Terlizzi, Gena; Alexander, Jennifer** Subject: **Courtesy Copy: Missouri Air Conservation Commission - January 29, 2015 Public Hearing** 



### This is a courtesy copy of an email bulletin sent b y Wendy Vit.

This bulletin was sent to the following groups of p eople:
Subscribers of Air Public Notices (691 recipients)

Having trouble viewing this email? View it as a Web page

.

MISSOURI AIR CONSERVATION COMMISSION WILL HOLD PUBLIC HEARING JEFFERSON CITY, MO -- The Missouri Air Conservation Commission will hold a public hearing on Thursday, January 29, 2015 beginning at 9 a.m. at t he Elm Street Conference Center, 1730 East Elm Stre et, Lower Level, Bennett Springs Conference Room, Jeffe rson City, Missouri. The commission will hear testimony related to the following proposed action( s):

* Missouri State Implementation Plan Revision – Cross -State Air Pollution Rule (CSAPR) NO x 

### Annual Trading Program
This proposed State Implementation Plan (SIP) revis ion will reallocate four oxides of nitrogen (NO x 

### ) annual allowances under the U.S. Environmental Prot ection Agency’s Cross-State Air Pollution Rule. Two NO x 

### annual allowances each will be distributed to the City of Chillicothe and the City of Higginsville. These two municipalities would have r eceived zero allowances under the federal allocatio n method. All other existing unit budget allowances w ill be distributed following the federal allocation method. This SIP revision redistributes emission al lowances for the 2016 control period only. The Missouri Department of Natural Resources’ Air Pollu tion Control Program is pursuing a separate rulemaking and SIP revision to reallocate allowance s for the control period 2017 and beyond.

* Missouri State Implementation Plan Revision – Cross -State Air Pollution Rule (CSAPR) NO x 

### Ozone Season Trading Program
This proposed State Implementation Plan (SIP) revis ion will reallocate two oxides of nitrogen (NO x 

### ) ozone season allowances under the U.S. Environmenta l Protection Agency’s Cross-State Air Pollution Rule. One NO x 

### ozone season allowance each will be distributed to the City of Chillicothe and the City of Higginsville. These two municipalities would have r eceived zero allowances under the federal allocatio n2



### method. All other existing unit budget allowances w ill be distributed following the federal allocation method. This SIP revision redistributes emission al lowances for the 2016 control period only. The Missouri Department of Natural Resources’ Air Pollu tion Control Program is pursuing a separate rulemaking and SIP revision to reallocate allowance s for the control period 2017 and beyond.
If the Commission adopts these actions, it will be the Department’s intention to submit them to the U. S. Environmental Protection Agency to be included in M issouri’s State Implementation Plan.
Documents for the above item(s) will be available f or review at the Missouri Department of Natural Resources, Air Pollution Control Program, 1659 Elm Street, Jefferson City, (573) 751-4817 and in the P ublic Notices section of the program web site http://dnr.mo.gov/env/apcp/public-notices.htm. Thi s information will be available at least 30 days prior to the public h earing date. The Department will accept written or email comment s for the record until 5 p.m. on February 5, 2015. Please send written comments to Chief, Air Quality Plannin g Section, Air Pollution Control Program, P.O. Box 176, Jefferson City, MO 65102-0176. Email comments may b e submitted via the program web site noted above. All written and email comments and public hearing t estimony will be equally considered.
Citizens wishing to speak at the public hearing sho uld notify the secretary to the Missouri Air Conser vation Commission, Missouri Department of Natural Resource s, Air Pollution Control Program, P.O. Box 176, Jefferson City, Missouri 65102-0176, or telephone ( 573) 526-3420. The Department requests persons intending to give verbal presentations also provide a written copy of their testimony to the commissio n secretary at the time of the public hearing.
Persons with disabilities requiring special service s or accommodations to attend the meeting can make arrangements by calling the Program directly at (57 3) 751-4817, the Division of Environmental Quality' s toll free number at (800) 361-4827, or by writing two we eks in advance of the meeting to: Missouri Departme nt of Natural Resources, Air Conservation Commission S ecretary, P.O. Box 176, Jefferson City, MO 65102. Hearing impaired persons may contact the program th rough Relay Missouri, (800) 735-2966.

Celebrating 40 years of taking care of Missouri's n atural resources. To learn more visit dnr.mo.gov

.

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http://www.dnr.mo.gov/env/apcp/stateplanrevisions.htm [12/23/2014 9:14:52 AM] Jay Nixon, Governor Sara Parker Pauley, Director



### Air Pollution Control Program

State Plan Action

On Public Notice | Proposed for Adoption

On Public Notice
Missouri State Implementation Plan Revision – Cross-State Air Pollution Rule (CSAPR) NOx Annual Trading Program

The Missouri Department of Natural Resources’ Air Pollution Control Program is proposing a State Implementation Plan (SIP) revision to reallocate four NOx annual allowances under the U.S. Environmental Protection Agency’s Cross-State Air Pollution Rule. Two NOx annual allowances each would be distributed to the City of Chillicothe and the City of Higginsville. These two municipalities would have received zero allowances under the federal allocation method. All other existing unit budget allowances will be distributed following the federal allocation method.

This SIP revision redistributes emission allowances for the 2016 control period only. The Air Program is pursuing a separate rulemaking and SIP revision to reallocate allowances for the control period 2017 and beyond.

CSAPR SIP-NOx Annual Appendix A

Submit Comments Now

A public hearing is scheduled for this plan action on January 29, 2015. Comments about this plan action will be accepted through the close of business on February 5, 2015.

Missouri State Implementation Plan Revision – Cross-State Air Pollution Rule (CSAPR) NOx Ozone Season Trading Program

The Missouri Department of Natural Resources’ Air Pollution Control Program is proposing a State Implementation Plan (SIP) revision to reallocate two NOX Ozone Season allowances under the U.S. Environmental Protection Agency’s Cross-State Air Pollution Rule. One NOX ozone season allowance each will be distributed to the City of Chillicothe and the City of Higginsville. These two municipalities would have received zero allowances under the federal allocation method. All other existing unit budget allowances will be distributed following the federal allocation method.

This SIP revision redistributes emission allowances for the 2016 control period only. The Air Program is pursuing a separate rulemaking and SIP revision to reallocate allowances for the control period 2017 and beyond.

CSAPR SIP-NOx Ozone Season Appendix A

Submit Comments Now

A public hearing is scheduled for this plan action on January 29, 2015. Comments about this plan action will be accepted through the close of business on February 5, 2015.

Proposed for Adoption

None at this time.

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About Us Contact Us Boards and Commissions Job Opportunities Site Directory Air Land and Geology Water HelpPUBLIC HEARING 1/29/2015

www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 1

1 BEFORE THE MISSOURI AIR CONSERVATION COMMISSION M EETING

2

3

4

5 PUBLIC HEARING Missouri State Implementation Plan Revision - Cross -State Air 6 Pollution Rule NOx Annual Trading Program; Missour i State Implementation Plan Revision - Cross-State Air Pol lution 7 Rule NOx Ozone Season Trading Program

8 9 January 29, 2015

Elm Street Conference Center

10 1730 East Elm Street

Lower Level 11 Jefferson City, MO 65101

12

13 Before: 14 Gary Pendergrass - Chair

Jack Baker - Member

15 Mark Garnett - Member

David Zimmermann - Member

16

17

18 THE COURT REPORTER:

19 Jenna Petree

MIDWEST LITIGATION SERVICES

20 401 Locust Street
Columbia, MO 65201

21 573-449-0561

22

23

24

25PUBLIC HEARING 1/29/2015

www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 2 1 Proceedings

2 MR. BAKER: The hearing will come to order.

3 Let the record show the following Commissioners ar e

4 present: Jack Baker, David Zimmermann, Mark Garne tt, and

5 Gary Pendergrass by phone. Air Commission -- the Air

6 Conservation Commission of the State of Missouri h as called

7 this public hearing pursuant to Section 643.070 Re vised

8 Statutes of Missouri; EPA promulgated rule 40 CFR 51.102,

9 for the purpose of hearing testimony relating to: Missouri

10 State Implementation Plan Revision - Cross-State Air

11 Pollution Rule NOx Annual Trading Program; Missou ri State

12 Implementation Plan Revision - Cross-State Air Po llution

13 Rule NOx Ozone Season Trading Program.

14 The hearing will close at 5:00 p.m. on

15 February 5, 2015.

16 Anyone how has not been scheduled to appear,

17 but who wishes to be heard, should indicate that you wish

18 to speak on the sign-in sheet available at the do or.

19 Section 643.100 of the Missouri Stat utes

20 provides that all oral testimony be give under oa th.

21 Accordingly, when you are called to testify, plea se present

22 yourself to the court reporter first to be sworn in.

23 When you testify, please state your name,

24 business address, and your occupation or affiliat ion.

25 If you have a prepared statement, it will bePUBLIC HEARING 1/29/2015

www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 4 1 MR. BAKER: Okay. We are ready the s ensitive

2 findings. I'm on the wrong page. I got ahead of my

3 myself.

4 MARK LEATH, having been first duly sworn, testifie s as

5 follows:

6 MR. LEATH: Mr. Chairman, members of the

7 Commission. My name is Mark Leath. I am employed as an

8 environmental engineer with the Missouri Departmen t of

9 Natural Resources' Air Pollution Control Program. I work

10 at 1659 East Elm Street, Jefferson City, Missouri

.
11 I am here today to present testimony on two

12 proposed Missouri State Implementation Plan or th e SIP

13 revisions entitled, "Cross-State Air Pollution Ru le, or

14 CSAPR, NOx Annual Trading Program, and Cross-Stat e Air

15 Pollution Rule NOx Ozone Season Trading Program." The

16 executive summaries for these two plans start in the

17 briefing document on pages 99 and 105, respective ly.

18 If it pleases the Commission, I woul d like to

19 present both plans together.

20 The CSAPR is a federal rule designed to reduce

21 the interstate transport of power plant emissions through

22 an EPA-administered emission cap-and-trade progra m. CSAPR

23 is being implemented as a Federal Implementation Plan, or

24 FIP, effective without action by starting in 2015 , but

25 states have the option to reallocate emission all owances

### RECOMMENDATION FOR ADOPTION

PROPOSED REVISION TO

MISSOURI STATE IMPLEMENTATION PLAN – CROSS-STATE AIR POLLUTI ON RULE (CSAPR) NO x 

### ANNUAL TRADING PROGRAM

On January 29, 2014, the Missouri Air Conserva tion Commission held a public hearing for a revision to the Missouri State Im plementation Plan (SIP) entitled

– Cross-State Air Pollution Rule (CSAPR) NO x 

### Annual Trading Program . A summary of comments received and the Air Program’s corresponding responses is included on the following page. No revisions were made to the proposed plan as a re sult of comments received.
The plan has not been reprinted in the briefing do cument due to its volume. The entire plan is available for review at the Missouri Departme nt of Natural Resources’ Air Pollution Control Program, 1659 East Elm Street, Jefferson Cit y, Missouri, 65101, (573)75 1-4817. It is also available online at http://dnr.mo.gov/ env/apcp/statepl anrevisions.htm.
The Air Program recommends the commission a dopt the plan as proposed. If the commission adopts this plan, it will be the department’s in tention to submit it to the U.S. Environmental Protection Agency for inclusion in th e Missouri State Implementation Plan.

### COMMENTS AND RESPONSES ON

PROPOSED REVISION TO

MISSOURI STATE IMPLEMENTATION PLAN – CROSS-STATE AIR POLLUTI ON RULE (CSAPR) NO x 

### ANNUAL TRADING PROGRAM

The public comment period for the proposed revisi on to the Missouri State Implementation Plan (SIP) for the Cross-State Air Pollution Rule (CSAPR) NO x 

### Annual Trading Program opened on December 29, 2014 and closed on February 5, 2015. No revisions to the proposed plan were made as a result of comments. However, minor clarifications and revisions were made to the supplemental document that will accompany th e plan as a result of internal review.
The following is a summary of comments recei ved and the Missouri Department of Natural Resources’ Air Pollution Control Program’s (Air Program’s) corresponding responses.
SUMMARY OF COMMENTS: During the public comment period for the proposed plan, the Air Program did not receive any comments.

SUMMARY OF MINOR CHANGES: The SIP revisi on being proposed for adoption only consists of the list of existing CSAPR units and their corresponding NO x 

### Annual Allocations for the 2016 control period under CSAPR. The supplemental document that will accompany the SIP revision describes the background, purpose, a nd authority to submit this list as a SIP revision to the U.S. Environmental Protection Agency (EPA). Accord ingly, the document describing the SIP revision has been renamed for clarity to show that it is a supplemental document that will accompany the SIP revision. The Air Program is only requesting SIP approval of the list that will be submitted and not the document itself. In addition to the title change of the supplementa l document, other minor changes and clarifications were made to the supplemental document as follows:

 Throughout the document, minor narrative change s were made to provide clarity that only the list of allocations will be submitted as a SIP revision and that the document only explains the background, purpose, and authority to do so.

 A list was added to subsection 2.5 of the doc ument to clearly explain the differences between the information displayed in Tabl e 1 of the document and the information displayed in Appendix A, which will be submitted to EPA as the SIP revision.

 References to EPA’s CSAPR Interim Final Rule, which was promulgated in December 2014, were added to section 1 and subsection 2.3 of the document.